OFFERING CIRCULAR

Picture 4 

 

Raadr, Inc.

(doing business as Telvantis)

 

1,500,000,000 Shares of Common Stock

 

By this Offering Circular, Raadr, Inc., a Nevada corporation, is offering for sale a maximum of 1,500,000,000 shares of its common stock (the Offered Shares), at a fixed price of $0.003 per share, pursuant to Tier 1 of Regulation A of the United States Securities and Exchange Commission (the SEC). A minimum purchase of $10,000 of the Offered Shares is required in this offering, with any additional purchase required to be in an amount of at least $1,000. This offering is being conducted on a best-efforts basis, which means that there is no minimum number of Offered Shares that must be sold by us for this offering to close; thus, we may receive no or minimal proceeds from this offering. All proceeds from this offering will become immediately available to us and may be used as they are accepted. Purchasers of the Offered Shares will not be entitled to a refund and could lose their entire investments.

 

Upon qualification of this offering by the SEC, a total of $1,150,000 of principal amount convertible promissory notes (the “Subject Convertible Notes”) will, by their terms, be eligible for conversion into Offered Shares (the Offered Shares issued upon conversion of the Subject Convertible Notes are referred to as the “Conversion Shares”), at the election of their respective holders, at the offering price for all of the Offered Shares, $0.003 per share converted. (See “Use of Proceeds” and “Plan of Distribution”).

 

This offering will commence within two days of its qualification by the SEC. This offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering circular being qualified by the SEC and (c) the date on which this offering is earlier terminated by us, in our sole discretion. (See “Plan of Distribution”).

 

Title of Class

of Securities Offered

 

Number of

Offered Shares

 

Price to Public

 

Commissions(1)

 

Proceeds to Company(2)

Common Stock

 

1,500,000,000

 

$0.003

 

$-0-

 

$4,500,000(3)(4)

 

(1)We will not pay any commissions for the sale of Offered Shares in this offering. We do not intend to offer and sell the Offered Shares through registered broker-dealers or utilize finders. However, should we determine to employ a registered broker-dealer of finder, information as to any such broker-dealer or finder shall be disclosed in an amendment to this Offering Circular. 

(2)Does not account for payment of expenses of this offering, which are estimated to not exceed $20,000 and which include, among other expenses, legal fees, accounting costs, administrative services, Blue Sky compliance and actual out-of-pocket expenses incurred by us in selling the Offered Shares. See “Plan of Distribution” and “Selling Shareholders.” 

(3)The amount of total proceeds received by us includes a total of $1,150,000 of principal amount of the Subject Convertible Notes, plus accrued interest through the date of their respective conversions. After deducting the aggregate amount due (principal and interest) under the Convertible Notes, we will receive cash proceeds from sales of the Offered Shares equal to approximately $3,350,000. (See “Use of Proceeds” and “Plan of Distribution”). 

(4)Should we fail to obtain at least $1,500,000 in cash proceeds in this offering prior to the six-month anniversary date of the date of qualification of this offering by the SEC, then our controlling shareholder, Mexedia S.p.A. S.B has the right, but not the obligation, to rescind our acquisitions of Mexedia, Inc., a Florida corporation, and Mexedia, DAC, an Ireland corporation. (See “Risk Factors-Risks Related to a Purchase of Offered Shares”). 

 


 

There is no escrow established for the proceeds of this offering. (See “Risk Factors - Risks Related to a Purchase of Offered Shares”).

 

Our common stock is quoted in the over-the-counter under the symbol “RDAR” in the OTC Pink marketplace of OTC Link. On November 27, 2024, the closing price of our common stock was $0.00085 per share.

 

Investing in the Offered Shares is speculative and involves substantial risks, including the superior voting rights of our outstanding shares of Series F Preferred Stock (the “Series F Preferred Stock”), which effectively precludes current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The holders of the Series F Preferred Stock, as a class, have voting rights in all matters requiring shareholder approval equal to 66.67% of all shares eligible to vote.

 

Mexedia S.p.A S.B., an Italy corporation (“Mexedia SPA”), is the owner of all outstanding shares of our Series F Preferred Stock; Orlando Taddeo is the President of Mexedia SPA and, as such, holds voting and dispositive control over the shares of Series F Preferred Stock owned by Mexedia SPA. As the owner of all outstanding shares of Series F Preferred Stock, Mexedia SPA will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors-Risks Related to a Purchase of the Offered Shares”).

 

You should purchase Offered Shares only if you can afford a complete loss of your investment. See “Risk Factors,” beginning on page 4, for a discussion of certain risks that you should consider before purchasing any of the Offered Shares.

 

THE SEC DOES NOT PASS UPON THE MERITS OF, OR GIVE ITS APPROVAL TO, ANY SECURITIES OFFERED OR THE TERMS OF THE OFFERING, NOR DOES IT PASS UPON THE ACCURACY OR COMPLETENESS OF ANY OFFERING CIRCULAR OR OTHER SOLICITATION MATERIALS. THESE SECURITIES ARE OFFERED PURSUANT TO AN EXEMPTION FROM REGISTRATION WITH THE SEC. HOWEVER, THE SEC HAS NOT MADE AN INDEPENDENT DETERMINATION THAT THE SECURITIES OFFERED ARE EXEMPT FROM REGISTRATION.

 

The use of projections or forecasts in this offering is prohibited. No person is permitted to make any oral or written predictions about the benefits you will receive from an investment in Offered Shares.

 

No sale may be made to you in this offering if you do not satisfy the investor suitability standards described in this Offering Circular under “Plan of Distribution-State Law Exemption” and “Offerings to Qualified Purchasers-Investor Suitability Standards” (page 13). Before making any representation that you satisfy the established investor suitability standards, we encourage you to review Rule 251(d)(2)(i)(C) of Regulation A. For general information on investing, we encourage you to refer to www.investor.gov.

 

This Offering Circular follows the disclosure format of Form S-1, pursuant to the General Instructions of Part II(a)(1)(ii) of Form 1-A.

 

The date of this Offering Circular is ______________, 2024.

 

 

 

 

 

 

 

 

 

 


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FOR FLORIDA RESIDENTS:

 

PURSUANT TO SECTION 517.061(11)(A)(5) OF THE FLORIDA STATUTES, FLORIDA INVESTORS HAVE A THREE-DAY RIGHT OF RESCISSION. IF A FLORIDA INVESTOR HAS EXECUTED A SUBSCRIPTION AGREEMENT AND TENDERED THE CONSIDERATION FOR THE PURCHASE, HE MAY ELECT, WITHIN THREE BUSINESS DAYS AFTER SIGNING THE SUBSCRIPTION AGREEMENT OR BEING FIRST NOTIFIED OF THIS RIGHT, WHICHEVER IS LATER, TO WITHDRAW FROM THE SUBSCRIPTION AGREEMENT AND RECEIVE A FULL REFUND AND RETURN (WITHOUT INTEREST) OF ANY MONEY PAID BY HIM. A FLORIDA INVESTOR’S WITHDRAWAL WILL BE WITHOUT ANY FURTHER LIABILITY TO ANY PERSON. TO ACCOMPLISH SUCH WITHDRAWAL, A FLORIDA INVESTOR NEED ONLY SEND A LETTER OR TELEGRAM TO THE COMPANY AT THE ADDRESS SET FORTH IN THIS MEMORANDUM INDICATING HIS INTENTION TO WITHDRAW. SUCH LETTER OR TELEGRAM MUST BE SENT AND POSTMARKED PRIOR TO THE END OF THE AFOREMENTIONED THIRD BUSINESS DAY. IF A FLORIDA INVESTOR SENDS A LETTER, IT IS PRUDENT TO SEND IT BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, TO AN OFFICER OF THE COMPANY TO ENSURE THAT IT IS RECEIVED AND ALSO TO EVIDENCE THE TIME AND DATE WHEN IT IS MAILED. SHOULD A FLORIDA INVESTOR MAKE THIS REQUEST ORALLY, HE SHOULD ASK FOR WRITTEN CONFIRMATION THAT HIS REQUEST HAS BEEN RECEIVED. THE FOREGOING IS INTENDED TO CONSTITUTE THE NOTICE REQUIRED UNDER THE FLORIDA STATUTES. ACCORDINGLY, EACH PURCHASER WILL HAVE THREE DAYS AFTER THE FIRST TENDER OF CONSIDERATION IS MADE BY SUCH PURCHASER TO VOID HIS PURCHASE OF THESE SECURITIES.

 

_______________________________________________________________

 

TABLE OF CONTENTS

 

 

Page

Cautionary Statement Regarding Forward-Looking Statements

3

Offering Circular Summary

3

Risk Factors

8

Dilution

15

Use of Proceeds

17

Plan of Distribution

19

Description of Securities

21

Business

22

Management’s Discussion and Analysis of Financial Condition and Results of Operations

31

Directors, Executive Officers, Promoters and Control Persons

38

Executive Compensation

39

Security Ownership of Certain Beneficial Owners and Management

40

Certain Relationships and Related Transactions

41

Legal Matters

43

Where You Can Find More Information

43

Index to Financial Statements

44

 

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING STATEMENTS

 

The information contained in this Offering Circular includes some statements that are not historical and that are considered forward-looking statements. Such forward-looking statements include, but are not limited to, statements regarding our development plans for our business; our strategies and business outlook; anticipated development of our company; and various other matters (including contingent liabilities and obligations and changes in accounting policies, standards and interpretations). These forward-looking statements express our expectations, hopes, beliefs and intentions regarding the future. In addition, without limiting the foregoing, any statements that refer to projections, forecasts or other characterizations of future events or circumstances, including any underlying assumptions, are forward-looking statements. The words anticipates, believes, continue, could, estimates, expects, intends, may, might, plans, possible, potential, predicts, projects, seeks, should, will, would and similar expressions and variations, or comparable terminology, or the negatives of any of the foregoing, may identify forward-looking statements, but the absence of these words does not mean that a statement is not forward-looking.

 


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The forward-looking statements contained in this Offering Circular are based on current expectations and beliefs concerning future developments that are difficult to predict. We cannot guarantee future performance, or that future developments affecting our company will be as currently anticipated. These forward-looking statements involve a number of risks, uncertainties (some of which are beyond our control) or other assumptions that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

 

All forward-looking statements attributable to us are expressly qualified in their entirety by these risks and uncertainties. These risks and uncertainties, along with others, are also described below in the Risk Factors section. Should one or more of these risks or uncertainties materialize, or should any of our assumptions prove incorrect, actual results may vary in material respects from those projected in these forward-looking statements. You should not place undue reliance on any forward-looking statements and should not make an investment decision based solely on these forward-looking statements. We undertake no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

 

OFFERING CIRCULAR SUMMARY

 

The following summary highlights material information contained in this Offering Circular. This summary does not contain all of the information you should consider before purchasing our common stock. Before making an investment decision, you should read this Offering Circular carefully, including the Risk Factors section and the unaudited consolidated financial statements and the notes thereto. Unless otherwise indicated, the terms we, us and our refer and relate to Raadr, Inc., a Nevada corporation, including its subsidiaries.

 

History

 

Our company was incorporated in the State of Nevada on March 29, 2006, as White Dental Supply, Inc. On January 7, 2013, our corporate name changed to Pitooey!, Inc. On October 12, 2015, our corporate name changed to Raadr, Inc.

 

Our Board of Directors and majority shareholder have approved a change of our corporate name to Telvantis, Inc. In the near future, we will submit an application for approval of this corporate action to FINRA. The effective time, as it relates to the stock trading market, of this corporate action, which will include a change to our trading symbol, will depend on the date on which FINRA issues its approval of our related filing. We are unable to predict the date on which FINRA will issue such approval.

 

Recent Change in Control

 

Effective October 8, 2024, a change in control of our company, in connection with our acquisitions (the Mexedia Acquisitions) of Mexedia, Inc., a Florida corporation with its operations headquartered in Miami, Florida (Mexedia Florida), and Mexedia DAC, an Ireland corporation now wholly owned by Mexedia Florida (Mexedia DAC) (Mexedia Florida and Mexedia DAC are referred to as the Mexedia Companies). Following these transactions, Mexedia SPA controls our company.

 

Also In connection with the Mexedia Acquisitions, Jacob DiMartino resigned as the Sole Director and Officer of our company and the following persons were appointed: Daniel Contreras, Chief Executive Officer and Director; Orlando Taddeo, President and Director; and Daniel Gilcher, Chief Financial Officer, Secretary, Treasurer and Director. (See “Directors, Executive Officers, Promoters and Control Persons”).

 

Acquisitions of the Mexedia Companies. Pursuant to separate Share Exchange Agreements (the “Acquisition Agreements”), we acquired 100% ownership of Mexedia Florida by the issuance of 40,000 shares of Series F Preferred Stock to Mexedia SPA and 100% ownership of Mexedia DAC by the issuance of 35,000 shares of Series F Preferred Stock to Mexedia SPA. Except for the consideration paid under the Acquisition Agreements, the Acquisition Agreements are substantially identical and contain the following provisions, among other customary provisions:

 

Regulation A Offering. Should we fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before October 28th, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements. This condition subsequent has been waived by Mexedia SPA.


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Reg A Offering Proceeds. Should we fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements. (See “Risk Factors”).

 

Divestiture. Should we fail to have divested of our pre-closing operations, which divestiture shall include all debts, other than the trade payables of our company, as of the closing date of the Mexedia Acquisitions, on or before December 31, 2024, Mexedia SPA shall have the right, but not the obligation, to rescind the Acquisition Agreements.

 

Redemption Agreement. In connection with the Acquisition Agreements, our company and JanBella entered into the Redemption Agreement, pursuant to which JanBella sold 100% of the then-outstanding shares of Series E Preferred Stock to our company in exchange for the Redemption Note.

 

The principal amount of the Redemption Note is $540,000, with interest at 8% per annum and a maturity date of October 8, 2025. Under the Redemption Note, we are required to pay, on a monthly basis, 40% of the proceeds from the Reg A Offering that exceeds $100,000, until the principal and interest shall have been paid.

 

Following the date of payment in full of the principal balance of the Redemption Note (the “Balance Date”), we are to pay JanBella up to an additional $1,260,000 as additional principal (the “Additional Principal”), whether through monthly payments of 10% of Reg A Offering proceeds and/or, for a period of 18 months immediately following the issue date of the Redemption Note, 10% of funds obtained by our company from any third-party.

 

Pledge Agreement and Guaranty. In connection with the Acquisition Agreements, JanBella and Mexedia SPA entered into a pledge agreement (the “Pledge Agreement”) and a guaranty (“Guaranty”) with respect to our company’s obligations under the Redemption Note. Specifically, the Pledge Agreement and the Guaranty relate to our company’s timely payment of the $540,000 principal balance and accrued interest on the Redemption Agreement.

 

Share Cancellation Agreements. In connection with the Acquisition Agreements, our company entered into three separate share cancellation agreement (the “Share Cancellation Agreements”) with Dean Richards, Brenda Whitman and Christina Upham, respectively. Pursuant to the Share Cancellation Agreements, a total of 1,700,000,000 shares of our common stock were cancelled.

 

Series F Preferred Stock. Also in conjunction with the Mexedia Acquisitions, we designated a new Series F Preferred Stock and issued a total of 75,000 shares of such Series F Preferred Stock to Mexedia SPA, which now controls our company through its ownership of the Series F Preferred Stock. (See “Description of Securities-Series F Preferred Stock”).

 

New Business Focus

 

Following the acquisitions of the Mexedia Companies, our company has adopted the business plan of the Mexedia Companies as our company’s new business focus. Our prior business operations centered around an anti-bulling App known as “RAADR” are to be divested, in accordance with the Acquisition Agreements, which divestiture is expected to occur prior to the end of December 2024.

 

Our company now operates as a holding company in the telecommunications sector. Mexedia Florida and Mexedia DAC are intermediary operators that sell “segments” of telephone connections, taking place between a “calling” user and a “called” user, to other Telco operator or mobile operators. As telco operators, the volume of their revenues is closely linked to the number of interconnection agreements entered into with commercial partners, e.g. commercial contracts between telecom operators with the aim of interconnecting networks and exchanging services. (See “Business”).


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Figure 1 below depicts the structure of our company, following the acquisitions of the Mexedia Companies.

 

Picture 21 

Figure 1

 

Offering Summary

 

Securities Offered

 

1,500,000,000 shares of common stock, par value $0.001

 

 

 

Offering Price

 

$0.003 per Offered Share.

 

 

 

Shares Outstanding

Before This Offering

 

5,996,260,661 shares issued and outstanding as of the date hereof.

 

 

 

Shares Outstanding

After This Offering

 

7,496,260,661 shares issued and outstanding, assuming the sale of all Offered Shares are sold.

 

 

 

Minimum Number of Shares

to Be Sold in This Offering

 

None

 

 

 

Current Financial Condition

 

At June 30, 2024, our company had limited cash and limited revenues. However, with the acquisition of the Mexedia Companies, our company has transformed into a company that possesses adequate capital for operations and significant revenues. (See “Business” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations”).

 

 

 

Disparate Voting Rights

 

Our outstanding shares of Series F Preferred Stock possess superior voting rights, which effectively precludes current and future owners of our common stock, including the Offered Shares, from influencing any corporate decision. The holders of the Series F Preferred Stock, as a class, have voting rights in all matters requiring shareholder approval equal to 66.67% of all shares eligible to vote. Mexedia SPA (Orlando Taddeo, a Director and President of our company, is the President of Mexedia SPA and, in such capacity, controls the vote and disposition of the Series F Preferred Stock), as the owner of all outstanding shares of our Series F Preferred Stock will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. (See “Risk Factors-Risks Related to a Purchase of the Offered Shares”).


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Investor Suitability Standards

 

The Offered Shares may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.

 

 

 

Market for our Common Stock

 

Our common stock is quoted in the over-the-counter market under the symbol “RDAR” in the OTC Pink marketplace of OTC Link.

 

 

 

Termination of this Offering

 

This offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering circular being qualified by the SEC and (c) the date on which this offering is earlier terminated by us, in our sole discretion.

 

 

 

Use of Proceeds

 

We will apply the proceeds of this offering for acquisitions, debt payment, general and administrative expenses and working capital. (See “Use of Proceeds”).

 

 

 

Risk Factors

 

An investment in the Offered Shares involves a high degree of risk and should not be purchased by investors who cannot afford the loss of their entire investments. You should carefully consider the information included in the Risk Factors section of this Offering Circular, as well as the other information contained in this Offering Circular, prior to making an investment decision regarding the Offered Shares.

 

Should we fail to obtain at least $1,500,000 in cash proceeds in this offering prior to the six-month anniversary date of the date of qualification of this offering by the SEC, then our controlling shareholder, Mexedia SPA, has the right, but not the obligation, to rescind our acquisitions of the Mexedia Companies. (See “Risk Factors”).

 

 

 

Corporate Information

 

Our principal executive offices are located at 1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139; our telephone number is 954-456-3191; our corporate website is located at www.telvantis.com. No information found on our company’s website is part of this Offering Circular.

 

Continuing Reporting Requirements Under Regulation A

 

As a Tier 1 issuer under Regulation A, we will be required to file with the SEC a Form 1-Z (Exit Report Under Regulation A) upon the termination of this offering. We will not be required to file any other reports with the SEC following this offering.

 

However, during the pendency of this offering and following this offering, we intend to file quarterly and annual financial reports and other supplemental reports with OTC Markets, which will be available at www.otcmarkets.com.

 

All of our future periodic reports, whether filed with OTC Markets or the SEC, will not be required to include the same information as analogous reports required to be filed by companies whose securities are listed on the NYSE or NASDAQ, for example.

 

 

 


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RISK FACTORS

 

An investment in the Offered Shares involves substantial risks. You should carefully consider the following risk factors, in addition to the other information contained in this Offering Circular, before purchasing any of the Offered Shares. The occurrence of any of the following risks might cause you to lose a significant part of your investment. The risks and uncertainties discussed below are not the only ones we face, but do represent those risks and uncertainties that we believe are most significant to our business, operating results, prospects and financial condition. Some statements in this Offering Circular, including statements in the following risk factors, constitute forward-looking statements. (See “Cautionary Statement Regarding Forward-Looking Statements”).

 

Risks Related to Our Company

 

Currently, the Rule 144 safe harbor is unavailable for the resale of shares issued by us. Because our company was, in the distant past, a “shell company” as defined by Rule 405 of the Securities Act and Rule 12b-2 of the Exchange Act, pursuant to Rule 144, one year must elapse from the time a “shell company” ceases to be a “shell company” and files Form 10 information with the SEC, during which time the issuer must remain current in its filing obligations, before a restricted shareholder can resell their holdings in reliance on Rule 144.

 

The term “Form 10 information” means the information that is required by SEC Form 10, to register under the Exchange Act each class of securities being sold under Rule 144. The Form 10 information is deemed filed when the initial filing is made with the SEC. Under Rule 144, restricted or unrestricted securities, that were initially issued by a reporting or non-reporting shell company or a company that was at any time previously a reporting or non-reporting shell company can only be resold in reliance on Rule 144 if the following conditions are met: (1) the issuer of the securities that was formerly a reporting or non-reporting shell company has ceased to be a shell company; (2) the issuer of the securities is subject to the reporting requirements of Section 13 or 15(d) of the Exchange Act; (3) the issuer of the securities has filed all reports and material required to be filed under Section 13 or 15(d) of the Exchange Act, as applicable, during the preceding twelve months (or shorter period that the issuer was required to file such reports and materials), other than Form 8-K reports; and (4) at least one year has elapsed from the time the issuer filed the current Form 10 type information with the SEC reflecting its status as an entity that is not a shell company.

 

An investment in our common stock involves a high degree of risk. You should carefully consider the risks described below and the other information in this prospectus before investing in our common stock. If any of the following risks occur, our business, operating results and financial condition could be seriously harmed. The trading price of our common stock, when and if we trade at a later date, could decline due to any of these risks, and you may lose all or part of your investment.

 

Prior to our acquisitions of the Mexedia Companies, we did not have a successful operating history. Until October 2024, when we acquired the Mexedia Companies, we did not have a successful operating history. However, the Mexedia Companies have reported operating profits in past periods. Nevertheless, there is no assurance that the Mexedia Companies will continue to earn a profit from their operations.

 

To increase revenues, the Mexedia Companies require additional capital. We require additional working capital with which to increase the capacity of the Mexedia Companies to generate revenues. There is no assurance that we will be able to obtain sources of financing, including in this offering, in order to satisfy our working capital needs as they relate to achieving greater revenues.

 

A default under our $45 million credit facility agreement could result in our lender foreclosing on the Mexedia Companies, resulting in our company’s loss of ownership of the Mexedia Companies. Because substantially all of the assets of the Mexedia Companies are pledged to securitize our credit facility agreement with our lender, Fasanara Securitisation S.A., an uncured default under such credit facility could result in our company’s losing ownership of the Mexedia Companies pursuant to a foreclosure action of our lender. If such an event were to occur, our company would no longer have any business operations.

 

Our financial statements are not independently audited, which could result in errors and/or omissions in our financial statements if proper standards are not applied. We are not required to have our financial statements audited by a firm that is certified by the Public Company Accounting Oversight Board (“PCAOB”). As such, we do not have a third party reviewing the accounting. We may also not be up to date with all publications and releases released by the PCAOB regarding accounting standards and treatments. This circumstance could mean that our


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unaudited financials may not properly reflect up to date standards and treatments, resulting in misstated financial statements.

 

If we are unable to manage future expansion effectively, our business may be adversely impacted. In the future, we may experience rapid growth in our business, which could place a significant strain on our company’s infrastructure, in general, and our internal controls and other managerial, operating and financial resources, in particular. If we are unable to manage future expansion effectively, our business would be harmed. There is, of course, no assurance that we will enjoy rapid development in our business.

 

We currently depend on the efforts of our executive officers’ serving without current compensation; the loss of these persons could disrupt our operations and adversely affect the development of our business. Our success in establishing our products and services will depend, primarily, on the continued service of our executive officers, Daniel Contreras, Orlando Taddeo and Daniel Gilcher. We have not entered into an employment agreement with any of such persons. In this regard, it is our intention to enter into employment agreements with these executive officers in the near future; the terms of such employment agreements have yet to be determined. The loss of service of these persons, for any reason, could seriously impair our ability to execute our business plan, which could have a materially adverse effect on our business and future results of operations. We have not purchased any key-man life insurance.

 

If we are unable to recruit and retain key personnel, our business may be harmed. If we are unable to attract and retain key personnel, our business may be harmed. Our failure to enable the effective transfer of knowledge and facilitate smooth transitions with regard to our key employees could adversely affect our long-term strategic planning and execution.

 

Negative outcomes of legal proceedings may adversely affect our business and financial condition, results of operations and cash flows. We become involved in legal proceedings from time to time. While we are not currently involved in any material legal proceedings, potential future proceedings may be complicated, costly and disruptive to our business operations. We might also incur significant expenses in defending these matters or may be required to pay significant fines, awards and settlements. Any of these potential outcomes, such as judgments, awards, settlements or orders could have a material adverse effect on our business, financial condition, operating results or our ability to do business.

 

The business of the Mexedia Companies may be impacted by new or changing tax laws or regulations or how judicial authorities apply tax laws. In connection with the services we sell, we calculate, collect and remit various taxes, surcharges and regulatory fees to numerous governmental authorities.

 

Tax laws are subject to change as new laws are passed and new interpretations of the law are issued or applied. In many cases, the application of tax laws is uncertain and subject to differing interpretations, especially when evaluated against new technologies and telecommunications services, such as broadband internet access and cloud related services.

 

In the event that the Mexedia Companies have incorrectly calculated, assessed or remitted amounts that were due to governmental authorities, the Mexedia Companies could be subject to additional taxes, fines, penalties or other adverse actions, which could materially impact their businesses, financial condition and operating results.

 

Our Board of Directors may change our policies without shareholder approval. Our policies, including any policies with respect to investments, leverage, financing, growth, debt and capitalization, will be determined by our Board of Directors or officers to whom our Board of Directors delegates such authority. Our Board of Directors will also establish the amount of any dividends or other distributions that we may pay to our shareholders. Our Board of Directors or officers to which such decisions are delegated will have the ability to amend or revise these and our other policies at any time without shareholder vote. Accordingly, our shareholders will not be entitled to approve changes in our policies, which policy changes may have a material adverse effect on our financial condition and results of operations.

 

Risks Related to Our Business

 

Alternative technologies, changes in the regulatory environment and current uncertainties in the marketplace may reduce future demand for existing telecommunication services and materially increase our capital expenditures. The telecommunications industry is experiencing significant technological change, evolving industry standards, ongoing improvements in the capacity and quality of digital technology, shorter development cycles for


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new products and enhancements and changes in end-user requirements and preferences. Technological advances, industry changes and changes in the regulatory environment could cause the technologies we use to become obsolete. We may not be able to respond to such changes and implement new technology on a timely basis or at an acceptable cost. Additionally, we may be required to select one developing or new technology over another and may not choose the technology that is ultimately determined to be the most economic, efficient or attractive to customers. We may also encounter difficulties in implementing new technologies, products and services and may encounter disruptions in service as a result. As a result, our financial performance may be negatively impacted.

 

We may not benefit from our acquisition strategy. As part of our business strategy, we regularly evaluate opportunities to enhance the value of our company by pursuing acquisitions of other businesses. Although we remain subject to financial and other covenants in our credit facility agreement that may limit our ability to pursue certain strategic opportunities, we intend to continue to evaluate and, when appropriate, pursue strategic acquisition opportunities as they arise. We cannot provide any assurance, however, with respect to the timing, likelihood, size or financial effect of any potential transaction involving our company, as we may not be successful in identifying and consummating any acquisition or in integrating any newly acquired business into our operations.

 

Currently, we have not entered into any agreement, oral or written, or other understanding with respect to the acquisition of any going business and/or assets.

 

The evaluation of business acquisition opportunities and the integration of any acquired businesses pose a number of significant risks, including the following:

 

acquisitions may place significant strain on our management and financial and other resources by requiring us to expend a substantial amount of time and resources in the pursuit of acquisitions that we may not complete, or to devote significant attention to the various integration efforts of any newly acquired businesses, all of which will require the allocation of limited resources; 

 

acquisitions may not have a positive impact on our cash flows or financial performance; 

 

even if acquired businesses eventually contribute to an increase in our cash flows or financial performance, such acquisitions may adversely affect our operating results in the short term as a result of transaction-related expenses we will have to pay or the higher operating and administrative expenses we may incur in the periods immediately following an acquisition as we seek to integrate the acquired business into our operations; 

 

we may not be able to realize anticipated synergies, achieve the desired level of integration of the acquired business or eliminate as many redundant costs; 

 

we may not be able to maintain relationships with customers, suppliers and other business partners of the acquired business; 

 

our operating and financial systems and controls and information services may not be compatible with those of the businesses we may acquire and may not be adequate to support our integration efforts, and any steps we take to improve these systems and controls may not be sufficient; 

 

our business plans and projections used to justify the acquisitions and expansion investments may be based on assumptions of revenues per subscriber, penetration rates in specific markets where we operate and expected operating costs and these assumptions may not develop as projected, which may negatively impact our profitability or the value of our intangible assets; 

 

growth through acquisitions will increase our need for qualified personnel, who may not be available to us or, if they were employed by a business we acquire, remain with us after the acquisition; and 

 

acquired businesses may have unexpected liabilities and contingencies, which could be significant. 

 

Disruptions of our information technology infrastructure or operations could harm our business. A disruption of our information technology infrastructure or overall operations, or the infrastructure or operations of certain vendors who provide information technology or overall operations services to us or our customers, could be caused by a natural disaster, energy or manufacturing failure, telecommunications system failure, ransomware attack,


10


cybersecurity attack, terrorist attack, intrusion or incident or defective or improperly installed new or upgraded business management systems. Although we make significant efforts to maintain the security and integrity of the Company’s operations and information technology infrastructure, there can be no assurance that our security efforts, business impact planning and disaster recovery measures will be effective or that attempted security breaches or catastrophic disruptions would not be successful or damaging, especially in light of the growing sophistication of cyber-attacks and intrusions sponsored by state or other interests. Portions of our information technology infrastructure also may experience interruptions, delays or cessations of service or produce errors in connection with systems integration or migration work that takes place from time to time. In the event of any such disruption, we may be unable to conduct our business in the normal course. Moreover, our business involves the processing, storage and transmission of data, which would also be negatively affected by such an event. A disruption of our information technology infrastructure or operations could also cause us to lose customers and revenue, particularly during a period of heavy demand for our services. We also could incur significant expense in repairing system damage and taking other remedial measures.

 

We could suffer a loss of revenue and increased costs, exposure to significant liability, reputational harm and other serious negative consequences if we sustain cyber-attacks or other data security breaches that disrupt our operations or result in the dissemination of proprietary or confidential information about us or our customers or other third parties. We utilize our information technology infrastructure to manage and store various proprietary information and sensitive or confidential data relating to our operations. We routinely process, store and transmit large amounts of data for our customers, including sensitive and personally identifiable information. We depend on our information technology infrastructure to conduct business operations and provide customer services. We may be subject to data breaches and disruptions of the information technology systems we use for these purposes. Our industry has witnessed an increase in the frequency, intensity and sophistication of cybersecurity incidents caused by threat actors such as foreign governments, criminals, hacktivists, terrorists and insider threats. Threat actors may be able to penetrate our network security and misappropriate or compromise our confidential, sensitive, personal or proprietary information, or that of third parties, and engage in the unauthorized use or dissemination of such information. They may be able to create system disruptions, or cause shutdowns. Threat actors may be able to develop and deploy viruses, worms, ransomware and other malicious software programs that attack our products or otherwise exploit security vulnerabilities of our systems causing operational damage that could impact our ability to serve customers and result in financial losses. In addition, sophisticated hardware and operating system software and applications that we procure from third parties may contain defects in design or manufacture, including “bugs,” cybersecurity vulnerabilities and other problems that could unexpectedly interfere with the operation or security of our systems.

 

Like many other companies, we increasingly leverage third-party SaaS solutions and external service providers to help us deliver services to our customers. In the delivery of these services, we are dependent on the security infrastructure of those third-party providers. These providers are also vulnerable to the cyber-attacks possible in today’s environment. In the case where a third-party provider becomes victim to an attack it could have an impact on our operations or ability to service customers.

 

To date, interruptions of our information technology infrastructure and third-party suppliers have been infrequent and have not had a material impact on our operations. However, because technology is increasingly complex and cyber-attacks are increasingly sophisticated and more frequent, there can be no assurance that such incidents will not have a material adverse effect on us in the future. The consequences of a breach of our security measures or those of a third-party provider, a cyber-related service or operational disruption, or a breach of personal, confidential, proprietary or sensitive data caused by a hacker or other malicious actor could be significant for us, our customers and other affected third parties. For example, the consequences could include damage to infrastructure and property, impairment of business operations, disruptions to customer service, financial costs and harm to our liquidity, costs associated with remediation, loss of revenues, loss of customers, competitive disadvantage, legal expenses associated with litigation, regulatory action, fines or penalties or damage to our brand and reputation.

 

In addition, the costs to us to eliminate or address the foregoing security challenges and vulnerabilities before or after a cyber-incident could be significant. In addition, our remediation efforts may not be successful and could result in interruptions, delays or cessation of service. We could also lose existing or potential customers for our services in connection with any actual or perceived security vulnerabilities in the services.

 

We are subject to payment processing risk. We rely on third parties to process payments from our customers. Acceptance and processing of these payment methods are subject to certain rules and regulations and require payment of interchange and other fees. To the extent there are disruptions in our payment processing systems, our revenue, operating expenses and results of operation could be adversely impacted.


11


 

Our business and operations would be adversely impacted in the event of a failure or interruption of our information technology infrastructure or as a result of a cybersecurity attack. The proper functioning of our own information technology (IT) infrastructure is critical to the efficient operation and management of our business. We may not have the necessary financial resources to update and maintain our IT infrastructure, and any failure or interruption of our IT system could adversely impact our operations. In addition, our IT is vulnerable to cyberattacks, computer viruses, worms and other malicious software programs, physical and electronic break-ins, sabotage and similar disruptions from unauthorized tampering with our computer systems. We believe that we have adopted appropriate measures to mitigate potential risks to our technology infrastructure and our operations from these IT-related and other potential disruptions. However, given the unpredictability of the timing, nature and scope of any such IT failures or disruptions, we could potentially be subject to downtimes, transactional errors, processing inefficiencies, operational delays, other detrimental impacts on our operations or ability to provide products to our customers, the compromising of confidential or personal information, destruction or corruption of data, security breaches, other manipulation or improper use of our systems and networks, financial losses from remedial actions, loss of business or potential liability, and/or damage to our reputation, any of which could have a material adverse effect on our cash flows, competitive position, financial condition or results of operations.

 

If we fail to comply with personal data protection and privacy laws, we could be subject to adverse publicity, government enforcement actions and/or private litigation, which could negatively affect our business and operating results. In the ordinary course of our business, we receive, process, transmit and store information relating to identifiable individuals (“personal data”), primarily employees, former employees and consumers with whom we interact. As a result, we are subject to various U.S. federal and state and foreign (E.U.) laws and regulations relating to personal data. These laws have been subject to frequent changes, and new legislation in this area may be enacted in other jurisdictions at any time. These laws impose operational requirements for companies receiving or processing personal data, and many provide for significant penalties for noncompliance. These requirements with respect to personal data have subjected and may continue in the future to subject our company to, among other things, additional costs and expenses and have required and may in the future require costly changes to our business practices and information security systems, policies, procedures and practices. Our security controls over personal data, the training of employees and vendors on data privacy and data security, and the policies, procedures and practices we implemented or may implement in the future may not prevent the improper disclosure of personal data by us or the third-party service providers and vendors whose technology, systems and services we use in connection with the receipt, storage and transmission of personal data. Unauthorized access or improper disclosure of personal data in violation of personal data protection or privacy laws could harm our reputation, cause loss of consumer confidence, subject us to regulatory enforcement actions (including fines), and result in private litigation against us, which could result in loss of revenue, increased costs, liability for monetary damages, fines and/or criminal prosecution, all of which could negatively affect our business and operating results.

 

We may not compete successfully with other businesses in our industry segment. The industry segment in which we compete is highly competitive and, in general, dominated by large companies. We may not be successful in competing against these competitors, many of whom have longer operating histories, significantly greater financial stability and better access to capital markets and credit than we do. There is no assurance that we will be able to compete successfully against our competition. (See “Business-Competition”).

 

Risks Related to Compliance and Regulation

 

We will not have reporting obligations under Sections 14 or 16 of the Securities Exchange Act of 1934, nor will any shareholders have reporting requirements of Regulation 13D or 13G, nor Regulation 14D. So long as our common shares are not registered under the Exchange Act, our directors and executive officers and beneficial holders of 10% or more of our outstanding common shares will not be subject to Section 16 of the Exchange Act. Section 16(a) of the Exchange Act requires executive officers and directors and persons who beneficially own more than 10% of a registered class of equity securities to file with the SEC initial statements of beneficial ownership, reports of changes in ownership and annual reports concerning their ownership of common shares and other equity securities, on Forms 3, 4 and 5, respectively. Such information about our directors, executive officers and beneficial holders will only be available through periodic reports we file with OTC Markets.

 

Our common stock is not registered under the Exchange Act and we do not intend to register our common stock under the Exchange Act for the foreseeable future; provided, however, that we will register our common stock under the Exchange Act if we have, after the last day of any fiscal year, more than either (1) 2,000 persons; or (2) 500 shareholders of record who are not accredited investors, in accordance with Section 12(g) of the Exchange Act.


12


 

Further, as long as our common stock is not registered under the Exchange Act, we will not be subject to Section 14 of the Exchange Act, which, among other things, prohibits companies that have securities registered under the Exchange Act from soliciting proxies or consents from shareholders without furnishing to shareholders and filing with the SEC a proxy statement and form of proxy complying with the proxy rules.

 

The reporting required by Section 14(d) of the Exchange Act provides information to the public about persons other than the company who is making the tender offer. A tender offer is a broad solicitation by a company or a third party to purchase a substantial percentage of a company’s common stock for a limited period of time. This offer is for a fixed price, usually at a premium over the current market price, and is customarily contingent on shareholders tendering a fixed number of their shares.

 

In addition, as long as our common stock is not registered under the Exchange Act, our company will not be subject to the reporting requirements of Regulation 13D and Regulation 13G, which require the disclosure of any person who, after acquiring directly or indirectly the beneficial ownership of any equity securities of a class, becomes, directly or indirectly, the beneficial owner of more than 5% of the class.

 

There may be deficiencies with our internal controls that require improvements. Our company is not required to provide a report on the effectiveness of our internal controls over financial reporting. We are in the process of evaluating whether our internal control procedures are effective and, therefore, there is a greater likelihood of undiscovered errors in our internal controls or reported financial statements as compared to issuers that have conducted such independent evaluations.

 

Risks Related to Our Organization and Structure

 

As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements, including the requirements for independent board members. As a non-listed company conducting an exempt offering pursuant to Regulation A, we are not subject to a number of corporate governance requirements that an issuer conducting an offering on Form S-1 or listing on a national stock exchange would be. Accordingly, we are not required to have (a) a board of directors of which a majority consists of independent directors under the listing standards of a national stock exchange, (b) an audit committee composed entirely of independent directors and a written audit committee charter meeting a national stock exchange’s requirements, (c) a nominating/corporate governance committee composed entirely of independent directors and a written nominating/ corporate governance committee charter meeting a national stock exchange’s requirements, (d) a compensation committee composed entirely of independent directors and a written compensation committee charter meeting the requirements of a national stock exchange, and (e) independent audits of our internal controls. Accordingly, you may not have the same protections afforded to shareholders of companies that are subject to all of the corporate governance requirements of a national stock exchange.

 

Our holding company structure makes us dependent on our future subsidiaries for our cash flow and subordinates the rights of our shareholders to the rights of creditors of our subsidiaries, in the event of an insolvency or liquidation of any such future subsidiary. Our company, Raadr, Inc., acts as a holding company and, accordingly, substantially all of our operations are conducted through subsidiaries. Such subsidiaries are separate and distinct legal entities. As a result, our cash flow depends upon the earnings of our subsidiaries. In addition, we depend on the distribution of earnings, loans or other payments by our subsidiaries. No subsidiary has any obligation to provide our company with funds for our payment obligations. If there is an insolvency, liquidation or other reorganization of any of our subsidiaries, our shareholders would have no right to proceed against their assets. Creditors of our subsidiaries would be entitled to payment in full from the sale or other disposal of the assets of such subsidiaries before our company, as a shareholder, would be entitled to receive any distribution from that sale or disposal.

 

Risks Related to a Purchase of the Offered Shares

 

If we do not obtain at least $1,500,000 in this offering within six months of its having been qualified by the SEC, Mexedia SPA has the right to rescind our acquisitions of the Mexedia Companies. Should we fail to obtain at least $1,500,000 in cash proceeds in this offering prior to the six-month anniversary date of the date of qualification of this offering by the SEC, then our controlling shareholder, Mexedia S.p.A. S.B has the right, but not the obligation, to rescind our acquisitions of Mexedia, Inc., a Florida corporation, and Mexedia, DAC, an Ireland corporation.


13


Were this circumstance to arise, and if Mexedia SPA were to exercise such right of rescission, purchasers of Offered Shares prior to the date of such rescission can expect a loss of their entire investments.

 

There is no minimum offering and no person has committed to purchase any of the Offered Shares. We have not established a minimum offering hereunder, which means that we will be able to accept even a nominal amount of proceeds, even if such amount of proceeds is not sufficient to permit us to achieve any of our business objectives. In this regard, there is no assurance that we will sell any of the Offered Shares or that we will sell enough of the Offered Shares necessary to achieve any of our business objectives. Additionally, no person is committed to purchase any of the Offered Shares.

 

There is no escrow established for the proceeds of this offering. Because there is no escrow established for the proceeds of this offering, proceeds derived from sales of Offered Shares will be deposited directly into our operating account, will be available for immediate use by our company and will be immediately subject to any claims of our creditors.

 

The outstanding shares of our Series F Preferred Stock effectively preclude current and future owners of our common stock from influencing any corporate decision. Mexedia SPA is the owner of all outstanding shares of our Series F Preferred Stock, which provides holders of the Series F Preferred Stock, as a class, voting rights in all matters requiring shareholder approval equal to 66.67% of all shares eligible to vote. Currently, Orlando Taddeo, as President of Mexedia SPA, the owner of all outstanding shares of our Series F Preferred Stock will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. Mexedia SPA’s ownership of all outstanding shares of our Series F Preferred Stock may also delay or prevent a future change of control of our company at a premium price, if it opposes it.

 

The outstanding shares of our Series F Preferred Stock, as a class, may be converted into a number of shares of our common stock equal to 75% of the post-conversion shares of common stock. Each 1,000 shares of Series F Preferred Stock have rights to convert into a number of shares of our common stock equal to one percent (1%) of the then-outstanding shares of our common stock, at any time. The effect of such rights of conversion is that their holder, Mexedia SPA, were Mexedia SPA to convert all outstanding shares of our Series F Preferred Stock into common stock, would be issued a number of shares of common stock equal to 75% of our then-outstanding shares of common stock. (See “Dilution-Ownership Dilution”).

 

We may seek additional capital that may result in shareholder dilution or that may have rights senior to those of our common stock. From time to time, we may seek to obtain additional capital, either through equity, equity-linked or debt securities. The decision to obtain additional capital will depend on, among other factors, our business plans, operating performance and condition of the capital markets. If we raise additional funds through the issuance of equity, equity-linked or debt securities, those securities may have rights, preferences or privileges senior to the rights of our common stock, which could negatively affect the market price of our common stock or cause our shareholders to experience dilution.

 

You may never realize any economic benefit from a purchase of Offered Shares. Because the market for our common stock is volatile, there is no assurance that you will ever realize any economic benefit from your purchase of Offered Shares.

 

We do not intend to pay dividends on our common stock. We intend to retain earnings, if any, to provide funds for the implementation of our business strategy. We do not intend to declare or pay any dividends in the foreseeable future. Therefore, there can be no assurance that holders of our common stock will receive cash, stock or other dividends on their shares of our common stock, until we have funds which our Board of Directors determines can be allocated to dividends.

 

Our shares of common stock are Penny Stock, which may impair trading liquidity. Disclosure requirements pertaining to penny stocks may reduce the level of trading activity in the market for our common stock and investors may find it difficult to sell their shares. Trades of our common stock will be subject to Rule 15g-9 of the SEC, which rule imposes certain requirements on broker-dealers who sell securities subject to the rule to persons other than established customers and accredited investors. For transactions covered by the rule, broker-dealers must make a special suitability determination for purchasers of the securities and receive the purchaser’s written agreement to the transaction prior to sale. The SEC also has rules that regulate broker-dealer practices in connection with transactions in penny stocks. Penny stocks generally are equity securities with a price of less than $5.00 (other than securities


14


registered on certain national securities exchanges or quoted on the NASDAQ system, provided that current price and volume information with respect to transactions in that security is provided by the exchange or system). The penny stock rules require a broker-dealer, prior to a transaction in a penny stock not otherwise exempt from the rules, to deliver a standardized risk disclosure document that provides information about penny stocks and the nature and level of risks in the penny stock market. The broker-dealer also must provide the customer with current bid and offer quotations for the penny stock, the compensation of the broker-dealer and its salesperson in the transaction, and monthly account statements showing the market value of each penny stock held in the customer’s account. The bid and offer quotations, and the broker-dealer and salesperson compensation information, must be given to the customer orally or in writing prior to effecting the transaction and must be given to the customer in writing before or with the customer’s confirmation.

 

The market price of our common stock is highly volatile. The market for low priced securities is generally less liquid and more volatile than securities traded on national stock markets. Wide fluctuations in market prices are not uncommon. No assurance can be given that the market for our common stock will continue. The price of our common stock may be subject to wide fluctuations in response to factors such as the following, some of which are beyond our control:

 

·quarterly variations in our operating results; 

·operating results that vary from the expectations of investors; 

·changes in expectations as to our future financial performance, including financial estimates by investors; 

·reaction to our periodic filings, or presentations by executives at investor and industry conferences; 

·changes in our capital structure; 

·announcements of innovations or new services by us or our competitors; 

·announcements by us or our competitors of significant contracts, acquisitions, strategic partnerships, joint ventures or capital commitments; 

·lack of success in the expansion of our business operations; 

·announcements by third parties of significant claims or proceedings against our company or adverse developments in pending proceedings; 

·additions or departures of key personnel; 

·asset impairment; 

·temporary or permanent inability to offer products or services; and 

·rumors or public speculation about any of the above factors. 

 

The terms of this offering were determined arbitrarily. The terms of this offering were determined arbitrarily by us. The offering price for the Offered Shares does not necessarily bear any relationship to our company’s assets, book value, earnings or other established criteria of valuation. Accordingly, the offering price of the Offered Shares should not be considered as an indication of any intrinsic value of such securities. (See “Dilution”).

 

You will suffer dilution in the net tangible book value of the Offered Shares you purchase in this offering. If you acquire any Offered Shares, you will suffer immediate dilution, due to the lower book value per share of our common stock compared to the purchase price of the Offered Shares in this offering. (See “Dilution”).

 

As an issuer of penny stock, the protection provided by the federal securities laws relating to forward looking statements does not apply to us. Although federal securities laws provide a safe harbor for forward-looking statements made by a public company that files reports under the federal securities laws, this safe harbor is not available to issuers of penny stocks. As a result, we will not have the benefit of this safe harbor protection in the event of any legal action based upon a claim that the material provided by us contained a material misstatement of fact or was misleading in any material respect because of our failure to include any statements necessary to make the statements not misleading. Such an action could hurt our financial condition.

 

DILUTION

 

Ownership Dilution

 

The information under “Investment Dilution” below does not take into account the potential conversion of the outstanding shares of Series F Preferred Stock. Were the shares of Series F Preferred Stock to be converted into shares of common stock immediately after the sale of all of the Offered Shares, we would issue a total of approximately


15


22,488,781,983 shares of common stock. The outstanding shares of Series F Preferred Stock may be converted into shares of our common stock at anytime.

 

The conversion of the outstanding shares of Series F Preferred Stock into shares of our common stock would cause holders of our common stock, including the Offered Shares, to incur significant dilution in their ownership of our company. (See “Risk Factors-Risks Related to a Purchase of the Offered Shares,” “Description of Securities” and “Security Ownership of Certain Beneficial Owners and Management”).

 

Investment Dilution

 

Dilution in net tangible book value per share to purchasers of our common stock in this offering represents the difference between the amount per share paid by purchasers of the Offered Shares in this offering and the net tangible book value per share immediately after completion of this offering. In this offering, dilution is attributable primarily to our negative net tangible book value per share.

 

If you purchase Offered Shares in this offering, your investment will be diluted to the extent of the difference between your purchase price per Offered Share and the pro forma net tangible book value of our common stock after this offering. Our net tangible book value as of June 30, 2024, was $3,583,789 (unaudited), or $(0.0010) (unaudited) per share. Net tangible book value per share is equal to total assets minus the sum of total liabilities and intangible assets divided by the total number of shares outstanding.

 

The tables below illustrate the dilution to purchasers of Offered Shares in this offering, on a pro forma basis, without giving effect to the acquisitions of the Mexedia Companies, without giving effect to share issuances occurring after June 30, 2024, and assuming 100%, 75%, 50% and 25% of the Offered Shares are sold at an offering price of $0.003 per share.

 

Assuming the Sale of 100% of the Offered Shares

 

 

 

Assumed offering price per share

 

$

0.0030

 

Net tangible book value per share as of June 30, 2024 (unaudited)

 

$

(0.0010

)

Increase in net tangible book value per share after giving effect to this offering

 

$

0.0012

 

Pro forma net tangible book value per share as of June 30, 2024 (unaudited)

 

$

0.0002

 

Dilution in net tangible book value per share to purchasers of Offered Shares in this offering

 

$

0.0028

 

 

Assuming the Sale of 75% of the Offered Shares

 

 

 

Assumed offering price per share

 

$

0.003

0

Net tangible book value per share as of June 30, 2024 (unaudited)

 

$

(0.0010

)

Increase in net tangible book value per share after giving effect to this offering

 

$

0.0010

 

Pro forma net tangible book value per share as of June 30, 2024 (unaudited)

 

$

(0.0000

)

Dilution in net tangible book value per share to purchasers of Offered Shares in this offering

 

$

0.0030

 

 

Assuming the Sale of 50% of the Offered Shares

 

 

 

Assumed offering price per share

 

$

0.0030

 

Net tangible book value per share as of June 30, 2024 (unaudited)

 

$

(0.0010

)

Increase in net tangible book value per share after giving effect to this offering

 

$

0.0007

 

Pro forma net tangible book value per share as of June 30, 2024 (unaudited)

 

$

(0.0003

)

Dilution in net tangible book value per share to purchasers of Offered Shares in this offering

 

$

0.0033

 

 

Assuming the Sale of 25% of the Offered Shares

 

 

 

Assumed offering price per share

 

$

0.0030

 

Net tangible book value per share as of June 30, 2024 (unaudited)

 

$

(0.0010

)

Increase in net tangible book value per share after giving effect to this offering

 

$

0.0005

 

Pro forma net tangible book value per share as of June 30, 2024 (unaudited)

 

$

(0.0005

)

Dilution in net tangible book value per share to purchasers of Offered Shares in this offering

 

$

0.0035

 

 


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USE OF PROCEEDS

 

The table below sets forth the estimated proceeds we would derive from this offering, assuming (1) the sale of 25%, 50%, 75% and 100% of the Offered Shares, (b) assuming an offering price of $0.003 and (c) assuming the payment of no sales commissions or finder’s fees. There is, of course, no guaranty that we will be successful in selling any of the Offered Shares in this offering.

 

 

 

Assumed Percentage of Offered Shares Sold in This Offering

 

 

 

25%

 

 

50%

 

 

75%

 

 

100%

 

Shares of Common Stock sold

 

 

375,000,000

 

 

 

750,000,000

 

 

 

1,125,000,000

 

 

 

1,500,000,000

 

Gross proceeds

 

$

1,125,000

 

 

$

2,250,000

 

 

$

3,375,000

 

 

$

4,500,000

 

Offering expenses

 

 

50,000

 

 

 

50,000

 

 

 

50,000

 

 

 

50,000

 

Net proceeds

 

$

1,075,000

 

 

$

2,200,000

 

 

$

3,325,000

 

 

$

4,450,000

 

 

The table below sets forth the proceeds we would derive from the sale of all of the Offered Shares, assuming the sale of 25%, 50%, 75% and 100% of the Offered Shares, assuming the payment of no sales commissions or finder’s fees and before the payment of expenses associated with this offering of approximately $50,000, and assuming an offering price of $0.003. There is, of course, no guaranty that we will be successful in selling any of the Offered Shares.

 

 

Use of Proceeds for Assumed Percentage

of Offered Shares Sold in This Offering

 

 

25%

 

50%

 

75%

 

100%

Business Acquisitions(1)

 

$

200,000

 

$

567,500

 

$

687,500

 

$

687,500

Redemption Note Payments(2)

 

 

350,000

 

 

840,000

 

 

1,175,000

 

 

1,800,000

General and Administrative Expense

 

 

125,000

 

 

125,000

 

 

125,000

 

 

125,000

Working Capital - Voice Business

 

 

200,000

 

 

567,500

 

 

687,500

 

 

687,500

 

 

 

975,000

 

 

2,100,000

 

 

2,675,000

 

 

3,300,000

Plus the cash value of the amount (principal and accrued interest attributable to the conversion of the Subject Convertible Notes(3)(4)(5)

 

 

100,000

 

 

100,000

 

 

650,000

 

 

1,150,000

Total

 

$

1,075,000

 

$

2,200,000

 

$

3,325,000

 

$

4,450,000

 

(1)Currently, we have not entered into any agreement, oral or written, or other understanding with respect to the acquisition of any going business and/or assets. There is no assurance that we will be able to acquire any going business and/or assets. To the extent we are unable to so-acquire a going business and/or assets, proceeds allocated for such use would be applied to sales and marketing expenses and to working capital for our voice business. 

 

(2)The principal amount of the Redemption Note is $540,000, with interest at 8% per annum and a maturity date of October 8, 2025. Under the Redemption Note, we are required to pay, on a monthly basis, 40% of the proceeds from this offering that exceeds $100,000, until the principal and interest shall have been paid. Following the date of payment in full of the principal balance of the Redemption Note, we are to pay up to an additional $1,260,000 as additional principal, through monthly payments of 10% of the proceeds from this offering. The amounts indicated in each column in the table above are estimates. 

 

(3)The Subject Convertible Notes were issued, as follows: 

 

(a)On November 15, 2024, we issued a $50,000 principal amount convertible promissory note to our Chief Executive Officer, Daniel Contreras, at 8% per annum, that is due on November 15, 2025, and is convertible at this holder’s election, into Conversion Shares. This convertible promissory note was issued in payment of a performance bonus. 


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(b)On November 15, 2024, we issued a $300,000 principal amount convertible promissory note to our President, Orlando Taddeo, at 8% per annum, that is due on November 15, 2025, and is convertible at this holder’s election, into Conversion Shares. This convertible promissory note was issued in payment of a performance bonus. 

 

(c)On November 15, 2024, we issued a $300,000 principal amount convertible promissory note to our President, Orlando Taddeo, at 8% per annum, that is due on November 15, 2025, and is convertible at this holder’s election, into Conversion Shares. This convertible promissory note was issued in payment of a performance bonus. 

 

(d)On November 15, 2024, we issued a $200,000 principal amount convertible promissory note to Otus, LLC, a company owned by our Chief Financial Officer, Daniel Gilcher, at 8% per annum, that is due on November 15, 2025, and is convertible at this holder’s election, into Conversion Shares. This convertible promissory note was issued in payment of a performance bonus. 

 

(e)On November 15, 2024, we issued a $200,000 principal amount convertible promissory note to Otus, LLC, a company owned by our Chief Financial Officer, Daniel Gilcher, at 8% per annum, that is due on November 15, 2025, and is convertible at this holder’s election, into Conversion Shares. This convertible promissory note was issued in payment of a performance bonus. 

 

(f)On July 15, 2024, we issued a $60,000 principal amount convertible promissory note to Newlan Law Firm, PLLC at 8% per annum, that is due on July 15, 2025, and is convertible at this holder’s election, into Conversion Shares. This convertible promissory note was issued in payment of Legal Services. 

 

(g)On July 15, 2024, we issued a $40,000 principal amount convertible promissory note to Newlan Law Firm, PLLC at 8% per annum, that is due on July 15, 2025, and is convertible at this holder’s election, into Conversion Shares. This convertible promissory note was issued in payment of Legal Services. 

 

(4)To the extent the Subject Convertible Notes are not converted into Conversion Shares, all unissued Conversion Shares would be available for sale by us hereunder. Any proceeds derived from such sales would be applied to working capital for our voice business. 

 

(5)While the holders of the Subject Convertible Notes listed in paragraphs 1(a) - (3) above have indicated that they do not intend to convert their Subject Convertible Notes for the foreseeable future, these persons may change their determination at any time and without notice to us. The stated total of Subject Convertible Notes converted in each column is for illustration purposes only. 

 

Further, our Board of Directors has determined that, in our company’s sole discretion, we may issue Offered Shares in this offering for non-cash consideration, including, without limitation, promissory notes, services and/or other consideration without notice to subscribers in this offering; provided, however, that any Offered Shares issued in this manner shall be issued at the fixed price $0.003 per Offered Share.

 

We reserve the right to change the foregoing use of proceeds, should our management believe it to be in the best interest of our company. The allocations of the proceeds of this offering presented above constitute the current estimates of our management and are based on our current plans, assumptions made with respect to our business, general economic conditions and our future revenue and expenditure estimates.

 

Investors are cautioned that expenditures may vary substantially from the estimates presented above. Investors must rely on the judgment of our management, who will have broad discretion regarding the application of the proceeds of this offering. The amounts and timing of our actual expenditures will depend upon numerous factors, including market conditions, cash generated by our operations (if any), business developments and the rate of our growth. We may find it necessary or advisable to use portions of the proceeds of this offering for other purposes.

 

In the event we do not obtain the entire offering amount hereunder, we may attempt to obtain additional funds through private offerings of our securities or by borrowing funds. Currently, we do not have any committed sources of financing.


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PLAN OF DISTRIBUTION

 

In General

 

Our company is offering a maximum of 1,500,000,000 Offered Shares on a best-efforts basis, at a fixed price of $0.003 per Offered Share; any funds derived from this offering will be immediately available to us for our use. There will be no refunds. This offering will terminate at the earliest of (a) the date on which the maximum offering has been sold, (b) the date which is one year from this offering being qualified by the SEC or (c) the date on which this offering is earlier terminated by us, in our sole discretion.

 

There is no minimum number of Offered Shares that we are required to sell in this offering. All funds derived by us from this offering will be immediately available for use by us, in accordance with the uses set forth in the Use of Proceeds section of this Offering Circular. No funds will be placed in an escrow account during the offering period and no funds will be returned, once an investor’s subscription agreement has been accepted by us.

 

We intend to sell the Offered Shares in this offering through the efforts of our Chief Executive Officer, Daniel Contreras. Mr. Contreras will not receive any compensation for offering or selling the Offered Shares. We believe that Mr. Contreras is exempt from registration as a broker-dealers under the provisions of Rule 3a4-1 promulgated under the Securities Exchange Act of 1934 (the Exchange Act). In particular, Mr. Contreras:

 

·is not subject to a statutory disqualification, as that term is defined in Section 3(a)(39) of the Securities Act; and 

·is not to be compensated in connection with his participation by the payment of commissions or other remuneration based either directly or indirectly on transactions in securities; and 

·is not an associated person of a broker or dealer; and 

·meets the conditions of the following: 

oprimarily performs, and will perform at the end of this offering, substantial duties for us or on our behalf otherwise than in connection with transactions in securities; and 

owas not a broker or dealer, or an associated person of a broker or dealer, within the preceding 12 months; and 

odid not participate in selling an offering of securities for any issuer more than once every 12 months other than in reliance on paragraphs (a)(4)(i) or (iii) of Rule 3a4-1 under the Exchange Act. 

 

As of the date of this Offering Circular, we have not entered into any agreements with selling agents for the sale of the Offered Shares. However, we reserve the right to engage FINRA-member broker-dealers. In the event we engage FINRA-member broker-dealers, we expect to pay sales commissions of up to 8.0% of the gross offering proceeds from their sales of the Offered Shares. In connection with our appointment of a selling broker-dealer, we intend to enter into a standard selling agent agreement with the broker-dealer pursuant to which the broker-dealer would act as our non-exclusive sales agent in consideration of our payment of commissions of up to 8.0% on the sale of Offered Shares effected by the broker-dealer.

 

Procedures for Subscribing

 

If you are interested in subscribing for Offered Shares in this offering, please submit a request for information by e-mail to Mr. Contreras at: dcontreras@telvantis.com; all relevant information will be delivered to you by return e-mail.

 

Thereafter, should you decide to subscribe for Offered Shares, you are required to follow the procedures described therein, which are:

 

·Electronically execute and deliver to us a subscription agreement via e-mail to: dcontreras@telvantis.com; and 

·Deliver funds directly by check or by wire or electronic funds transfer via ACH to our specified bank account. 

 

Right to Reject Subscriptions. After we receive your complete, executed subscription agreement and the funds required under the subscription agreement have been transferred to us, we have the right to review and accept or reject your subscription in whole or in part, for any reason or for no reason. We will return all monies from rejected subscriptions immediately to you, without interest or deduction.


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Acceptance of Subscriptions. Upon our acceptance of a subscription agreement, we will countersign the subscription agreement and issue the Offered Shares subscribed. Once you submit the subscription agreement and it is accepted, you may not revoke or change your subscription or request your subscription funds. All accepted subscription agreements are irrevocable.

 

This Offering Circular will be furnished to prospective investors upon their request via electronic PDF format and will be available for viewing and download 24 hours per day, 7 days per week on our website at www.adia-med.com, as well as on the SEC’s website, www.sec.gov.

 

An investor will become a shareholder of our company and the Offered Shares will be issued, as of the date of settlement. Settlement will not occur until an investor’s funds have cleared and we accept the investor as a shareholder.

 

By executing the subscription agreement and paying the total purchase price for the Offered Shares subscribed, each investor agrees to accept the terms of the subscription agreement and attests that the investor meets certain minimum financial standards. (See State Qualification and Investor Suitability Standards below).

 

An approved trustee must process and forward to us subscriptions made through IRAs, Keogh plans and 401(k) plans. In the case of investments through IRAs, Keogh plans and 401(k) plans, we will send the confirmation and notice of our acceptance to the trustee.

 

Minimum Purchase Requirements

 

You must initially purchase at least $10,000 of the Offered Shares in this offering. If you have satisfied the minimum purchase requirement, any additional purchase must be in an amount of at least $1,000.

 

State Law Exemption and Offerings to Qualified Purchasers

 

State Law Exemption. This Offering Circular does not constitute an offer to sell or the solicitation of an offer to purchase any Offered Shares in any jurisdiction in which, or to any person to whom, it would be unlawful to do so. An investment in the Offered Shares involves substantial risks and possible loss by investors of their entire investments. (See “Risk Factors”).

 

The Offered Shares have not been qualified under the securities laws of any state or jurisdiction. Currently, we plan to sell the Offered Shares in Colorado, Connecticut, Delaware, Florida, Georgia and New York. However, we may, at a later date, decide to sell Offered Shares in other states. In the case of each state in which we sell the Offered Shares, we will qualify the Offered Shares for sale with the applicable state securities regulatory body or we will sell the Offered Shares pursuant to an exemption from registration found in the applicable state’s securities, or Blue Sky, law.

 

Certain of our offerees may be broker-dealers registered with the SEC under the Exchange Act, who may be interested in reselling the Offered Shares to others. Any such broker-dealer will be required to comply with the rules and regulations of the SEC and FINRA relating to underwriters.

 

Investor Suitability Standards. The Offered Shares may only be purchased by investors residing in a state in which this Offering Circular is duly qualified who have either (a) a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings, or (b) a minimum net worth of $250,000, exclusive of automobile, home and home furnishings.

 

Issuance of Offered Shares

 

Upon settlement, that is, at such time as an investor’s funds have cleared and we have accepted an investor’s subscription agreement, we will either issue such investor’s purchased Offered Shares in book-entry form or issue a certificate or certificates representing such investor’s purchased Offered Shares.

 


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Transferability of the Offered Shares

 

The Offered Shares will be generally freely transferable, subject to any restrictions imposed by applicable securities laws or regulations.

 

Advertising, Sales and Other Promotional Materials

 

In addition to this Offering Circular, subject to limitations imposed by applicable securities laws, we expect to use additional advertising, sales and other promotional materials in connection with this offering. These materials may include information relating to this offering, articles and publications concerning industries relevant to our business operations or public advertisements and audio-visual materials, in each case only as authorized by us. In addition, the sales material may contain certain quotes from various publications without obtaining the consent of the author or the publication for use of the quoted material in the sales material. Although these materials will not contain information in conflict with the information provided by this Offering Circular and will be prepared with a view to presenting a balanced discussion of risk and reward with respect to the Offered Shares, these materials will not give a complete understanding of our company, this offering or the Offered Shares and are not to be considered part of this Offering Circular. This offering is made only by means of this Offering Circular and prospective investors must read and rely on the information provided in this Offering Circular in connection with their decision to invest in the Offered Shares.

 

DESCRIPTION OF SECURITIES

 

General

 

Our authorized capital stock consists of (1) 15,000,000,000 shares of common stock, $0.001 par value per share, and (2) 100,000,000 shares of preferred stock, $0.001 par value per share, of which 75,000 shares are designated Series F Preferred Stock.

 

As of the date of this Offering Circular, there were 5,996,260,661 shares of our common stock issued and outstanding, held by approximately 100 holders of record; and 75,000 shares of Series F Preferred Stock issued and outstanding held by one (1) holder.

 

Common Stock

 

General. The holders of our common stock currently have (a) equal ratable rights to dividends from funds legally available therefore, when, as and if declared by our Board of Directors; (b) are entitled to share ratably in all of our assets available for distribution to holders of common stock upon liquidation, dissolution or winding up of the affairs of our company; (c) do not have preemptive, subscriptive or conversion rights and there are no redemption or sinking fund provisions or rights applicable thereto; and (d) are entitled to one non-cumulative vote per share on all matters on which shareholders may vote. Our Bylaws provide that, at all meetings of the shareholders for the election of directors, a plurality of the votes cast shall be sufficient to elect. On all other matters, except as otherwise required by Nevada law or our Articles of Incorporation, as amended, a majority of the votes cast at a meeting of the shareholders shall be necessary to authorize any corporate action to be taken by vote of the shareholders.

 

Non-cumulative Voting. Holders of shares of our common stock do not have cumulative voting rights, which means that the holders of more than 50% of the outstanding shares, voting for the election of directors, can elect all of the directors to be elected, if they so choose, and, in such event, the holders of the remaining shares will not be able to elect any of our directors.

 

Pre-emptive Rights. As of the date of this Offering Circular, no holder of any shares of our common stock or Series A Super Voting Preferred Stock has pre-emptive or preferential rights to acquire or subscribe for any unissued shares of any class of our capital stock not disclosed herein.

 

Dividend Policy. We have never declared or paid any dividends on our common stock. We currently intend to retain future earnings, if any, to finance the expansion of our business. As a result, we do not anticipate paying any cash dividends in the foreseeable future.

 

Shareholder Meetings. Our bylaws provide that special meetings of shareholders may be called only by our Board of Directors, the chairman of the board, or our president, or as otherwise provided under Nevada law.


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Series F Preferred Stock

 

Designation and Amount. 75,000 shares were designated as Series F Preferred Stock.

 

Voting Rights. The holders of the Series F Preferred Stock shall, as a class, have rights in all matters requiring shareholder approval to a number of votes equal to two (2) times the sum of: (a) the total number of shares of common stock which are issued and outstanding at the time of any election or vote by the shareholders; plus (b) the number of votes allocated to shares of Preferred Stock issued and outstanding of any other class that shall have voting rights.

 

Dividends. The Series F Preferred Stock shall be treated pari passu with the Company’s common stock, except that the dividend on each share of Series F Preferred Stock shall be equal to the amount of the dividend declared and paid on each share of the Company’s common stock multiplied by the conversion rate.

 

Conversion Rate. The Series F Preferred Stock shall be convertible into shares of the Company’s common stock, as follows: each share of Series F Preferred Stock shall be convertible at any time into a number of shares of the Company’s common stock that equals 0.001 percent (0.001%) of the number of issued and outstanding shares of the Company’s common stock outstanding on the date of conversion, such that 1,000 shares of Series F Preferred Stock would convert into one percent (1%) of the number of issued and outstanding shares of the Company’s common stock outstanding on the date of conversion. A holder of shares of Series F Preferred Stock shall be required to convert all of such holder’s shares of Series F Preferred Stock, should any such holder exercise his, her or its rights of conversion.

 

Transfer Agent

 

Manhattan Transfer Registrar Co. is the transfer agent for our common stock. Manhattan Transfer Registrar Co.’s address is One Grand Central Place, 60 East 42nd Street, Suite 1201, New York, New York 10165; its telephone number is 631-928-7655; its website is www.mtrco.com. No information found on Manhattan Transfer Registrar Co.’s website is part of this Offering Circular.

 

BUSINESS

 

History

 

Our company was incorporated in the State of Nevada on March 29, 2006, as White Dental Supply, Inc. On January 7, 2013, our corporate name changed to Pitooey!, Inc. On October 12, 2015, our corporate name changed to Raadr, Inc.

 

Our Board of Directors and majority shareholder have approved a change of our corporate name to Telvantis, Inc. In the near future, we will submit an application for approval of this corporate action to FINRA. The effective time, as it relates to the stock trading market, of this corporate action, which will include a change to our trading symbol, will depend on the date on which FINRA issues its approval of our related filing. We are unable to predict the date on which FINRA will issue such approval.

 

Recent Change in Control

 

Effective October 8, 2024, a change in control of our company, in connection with our acquisitions (the Mexedia Acquisitions) of Mexedia, Inc., a Florida corporation with its operations headquartered in Miami, Florida (Mexedia Florida), and Mexedia DAC, an Ireland corporation now wholly owned by Mexedia Florida (Mexedia DAC) (Mexedia Florida and Mexedia DAC are referred to as the Mexedia Companies). Following these transactions, Mexedia SPA controls our company.

 

Also In connection with the Mexedia Acquisitions, Jacob DiMartino resigned as the Sole Director and Officer of our company and the following persons were appointed: Daniel Contreras, Chief Executive Officer and Director; Orlando Taddeo, President and Director; and Daniel Gilcher, Chief Financial Officer, Secretary, Treasurer and Director. (See “Directors, Executive Officers, Promoters and Control Persons”).

 

Acquisitions of the Mexedia Companies. Pursuant to separate Share Exchange Agreements (the “Acquisition Agreements”), we acquired 100% ownership of Mexedia Florida by the issuance of 40,000 shares of Series F Preferred


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Stock to Mexedia SPA and 100% ownership of Mexedia DAC by the issuance of 35,000 shares of Series F Preferred Stock to Mexedia SPA. Except for the consideration paid under the Acquisition Agreements, the Acquisition Agreements are substantially identical and contain the following provisions, among other customary provisions:

 

Regulation A Offering. Should we fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before October 28th, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements. This condition subsequent has been waived by Mexedia SPA.

 

Reg A Offering Proceeds. Should we fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements.

 

Divestiture. Should we fail to have divested of our pre-closing operations, which divestiture shall include all debts, other than the trade payables of our company, as of the closing date of the Mexedia Acquisitions, on or before December 31, 2024, Mexedia SPA shall have the right, but not the obligation, to rescind the Acquisition Agreements.

 

Redemption Agreement. In connection with the Acquisition Agreements, our company and JanBella entered into the Redemption Agreement, pursuant to which JanBella sold 100% of the then-outstanding shares of Series E Preferred Stock to our company in exchange for the Redemption Note.

 

The principal amount of the Redemption Note is $540,000, with interest at 8% per annum and a maturity date of October 8, 2025. Under the Redemption Note, we are required to pay, on a monthly basis, 40% of the proceeds from the Reg A Offering that exceeds $100,000, until the principal and interest shall have been paid.

 

Following the date of payment in full of the principal balance of the Redemption Note (the “Balance Date”), we are to pay JanBella up to an additional $1,260,000 as additional principal (the “Additional Principal”), whether through monthly payments of 10% of Reg A Offering proceeds and/or, for a period of 18 months immediately following the issue date of the Redemption Note, 10% of funds obtained by our company from any third-party.

 

Pledge Agreement and Guaranty. In connection with the Acquisition Agreements, JanBella and Mexedia SPA entered into a pledge agreement (the “Pledge Agreement”) and a guaranty (“Guaranty”) with respect to our company’s obligations under the Redemption Note. Specifically, the Pledge Agreement and the Guaranty relate to our company’s timely payment of the $540,000 principal balance and accrued interest on the Redemption Agreement.

 

Share Cancellation Agreements. In connection with the Acquisition Agreements, our company entered into three separate share cancellation agreement (the “Share Cancellation Agreements”) with Dean Richards, Brenda Whitman and Christina Upham, respectively. Pursuant to the Share Cancellation Agreements, a total of 1,700,000,000 shares of our common stock were cancelled.

 

Series F Preferred Stock. Also in conjunction with the Mexedia Acquisitions, we designated a new Series F Preferred Stock and issued a total of 75,000 shares of such Series F Preferred Stock to Mexedia SPA, which now controls our company through its ownership of the Series F Preferred Stock. (See “Description of Securities-Series F Preferred Stock).

 

New Business Focus

 

Following the acquisitions of the Mexedia Companies, our company has adopted the business plan of the Mexedia Companies as our company’s new business focus. Our prior business operations centered around an anti-bulling App known as “RAADR” are to be divested, in accordance with the Acquisition Agreements, which divestiture is expected to occur prior to the end of December 2024.

 

Our company now operates as a holding company in the telecommunications sector. Mexedia Florida and Mexedia DAC are intermediary operators that sell “segments” of telephone connections, taking place between a “calling” user and a “called” user, to other Telco operator or mobile operators. As telco operators, the volume of their revenues is closely linked to the number of interconnection agreements entered into with commercial partners, e.g. commercial contracts between telecom operators with the aim of interconnecting networks and exchanging services.


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Figure 1 below depicts the structure of our company, following the acquisitions of the Mexedia Companies.

 

Picture 21 

 

Figure 1

 

Plan of Business

 

In connection with our acquisitions of the Mexedia Companies, our company now operates as a holding company in the telecommunications sector. Mexedia Florida and Mexedia DAC are intermediary operators that sell “segments” of telephone connections, taking place between a “calling” user and a “called” user, to other Telco operator or mobile operators. As telco operators, the volume of their revenues is closely linked to the number of interconnection agreements entered into with commercial partners, e.g. commercial contracts between telecom operators with the aim of interconnecting networks and exchanging services.

 

In addition, we believe that there are available significant business acquisition opportunities within our industry segment. It is our estimation that any such acquisition opportunity would require us to deliver funds as part of the acquisition. Should we sell at least 50% of the Offered Shares in this offering, our management believes our company would be positioned to make one or more such acquisitions (no current agreement, written or otherwise exists, in this regard). However, there is no assurance that we will obtain sufficient funds in this offering, or from other sources, that would permit us to make any such acquisition.

 

With the proceeds of this offering, we intend to increase our working capital position, such that we will be able to increase our revenues, which are, in large measure, a function of our levels of available working capital, from time to time.

 

We believe that the proceeds of this offering will satisfy our cash requirements for at least the next twelve months.

 

Current Operations

 

Overview. The Mexedia Companies provide connectivity for two distinct target customers: (1) mobile operators and (2) enterprises:

 

Mobile operators are offered voice traffic wholesale services, while enterprises are provided messaging services and certain value-added services that are upsold to existing and new clients. 

 

Services are offered through a multichannel CPaaS platform which integrates different communication channels across voice and message and efficiently manages all customers’ communication activities. 

 

Mexedia Companies Communication Platform as a Service (CPaaS). The Mexedia Companies’ CPaaS is a cloud-based platform for mobile operators and enterprises which integrates different voice and messaging


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communication channels. Mobile operators are offered global network connectivity through the Mexedia Companies’ proprietary voice wholesale software, a business that is continuously contracted on large volumes. Enterprises are provided with a range of messaging services to efficiently communicate with their customers through traditional SMS and messaging applications, e.g., Whatsapp and Viber, while being offered a range of additional value-added services within the same technical infrastructure.

 

Picture 2 

 

The Mexedia Companies’ CPaaS platform offers a comprehensive suite of communication services for enterprises and mobile operators spanning both message and voice traffic. Hosted through a proprietary data platform in Stockholm, Sweden, the CPaaS platform minimizes reliance on third-party cloud services, to enable full system control and continuous maintenance by the Mexedia Companies. Mobile operators typically connect to the platform via direct switches to the MNO cloud while enterprises typically connect via an API through their CRM, facilitating their direct communication with customers while bypassing intermediary operators.

 

Wholesale of voice traffic is offered to mobile operators and enabled through the Mexedia Companies’ automated wholesale software. The wholesale software automatically selects the optimal route for each call and message based on certain criteria, e.g., cost, quality, capacity and availability. The software continuously monitors changes in price, quality, availability and traffic limits of traffic providers, adjusts routes accordingly and manages billing on behalf of its users.

 

Messaging services are offered to the Mexedia Companies’ enterprise clients seeking an efficient way to communicate with its customers through different messaging channels. The CPaaS solution offers channel unification by integrating traditional application-to-peer (“A2P”) SMS messaging and OTT messaging, e.g., Whatsapp and Viber, onto one platform. In addition, various add-on services are offered and upsold to enterprise clients on the platform, including number filtering, number validation and unsubscribing services.

 

Mobile Operators - Voice Wholesale. The Mexedia Companies offer large volume connectivity to mobile network operators (“MNOs”) for voice traffic at a wholesale level. Wholesale of voice traffic is enabled through The Mexedia Companies’ cloud-based automated wholesale software which is connected to the core digital switchboards of more than 300 MNOs globally. The Mobile Operator segment operates on a volume-based model and facilitates connections between sending and receiving operators across international networks.

 

 


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Picture 1 

 

The Mobile Operator segment mainly handles voice traffic and focuses on providing large volume connectivity to MNOs for voice traffic and text aggregation businesses for SMS traffic. The Mexedia Companies connect sending parties to receiving parties outside their network and generates a profit margin on each connection. The mobile operator offering is volume-based where the Mexedia Companies are connected to the core digital switchboards of more than 300 MNOs globally via a cloud-based wholesale software application. Voice and text traffic currently accounts for approximately 96% and 4%, respectively, of Mobile Operator revenues. Voice traffic remains stable, whereas text traffic is a fast-growing part of the Mobile Operator segment. The Mobile Operator segment maintains a consistent customer base of companies in the telecommunications sector and a relatively strong customer retention record.

 

Automated Voice Wholesale Software. The Mexedia Companies’ automated voice wholesale software delivers a comprehensive call routing solution for mobile operators, integrating essential functionalities to optimize traffic routing efficiency across different mobile networks. The voice wholesale software dashboard presents essential key operational statistics for a specified period, encompassing, e.g., total calls, revenues, connected calls, costs, margins, total minutes and live platform sessions. The dashboard provides a comprehensive overview of top suppliers, i.e., frequently used traffic providers, with additional information on quality, volumes, costs and margins, as well as top destinations and customers, providing insights into routes, quality, volumes and margins.

 

Specifically, the automated voice wholesale software offers:

 

Data Collection and Analysis: data collection and analysis of service providers, e.g., rates, connection quality, and available capacity. 

 

Call Routing Execution: following a routing decision, voice calls are routed via the selected provider to reach the desired destination. 

 

Monitoring and Adjustments: continuous monitoring and adjusting of routes based on changes in price, quality, availability and traffic limits. 

 

Billing: based on clients’ contracts with providers. 

 

Credit and Traffic Control: ensures the credit limits and maximum routed volume thresholds of clients are not exceeded. 

 

Least-cost Routing Decision: selects the most efficient route for each voice call based on preceding analysis and clients’ set limits. 

 

Enterprises - Messaging. The Mexedia Companies leverage their technology, regulatory approvals and experience in the Mobile Operator segment to provide text-based communication to medium and large-sized enterprises. The Mexedia Companies’ direct connectivity to operators eliminates the need for intermediary operators between enterprises and their customers, thereby reducing operational costs.


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Picture 1 

 

The Enterprise segment strategically leverages the Mexedia Companies’ direct operator connectivity, technical infrastructure, and regulatory expertise to enable direct text-based communication between enterprises and customers, bypassing intermediary operators. The offering comprises both Messaging and Value-Added Services provided to enterprises for effective customer communication with customers via different channels. Messaging Services represent the core offering and include an SMS platform and a two-way SMS feature while Value-Added Services comprise of add-ons products, e.g., phone number filtering and subscription features, and are upsold to existing clients. The Enterprise segment actively triggers both revenue and cost synergies by harmonizing operations with the Mobile Operator segment, achieving operational efficiency and minimizing the investment required for organic growth.

 

Messaging Services. The Mexedia Companies’ automated messaging software offers the services described below.

 

Campaign Portal: Enables enterprises to automate SMS campaigns in real-time through a user-friendly API connection. Utilizing SS7 and SMPP connectivity, the Mexedia Companies ensure optimal routing for high-volume SMS traffic, enhancing reliability. Offers enterprises a simple interface for designing and sending SMS messages to customers without requiring an API interface. 

 

Two-Way SMS: Two-way SMS facilitates customer communication by enabling customers to provide feedback on support, sales and general inquiries. Enhances brand image and customer satisfaction, positively impacting the overall bottom-line business. Fosters a customer-centric approach by reinforcing the enterprise’s commitment to personalized service. 

 

Voice Engage: Voice Engage enables enterprises to broadcast messages worldwide through direct voice calls to customer mobile or land line phones. Enterprises can broadcast pre-recorded audio or convert text to a chosen language through Text-To-Speech (TTS). The voice solution includes a control panel for making customer journeys, utilizing key-press responses for interactive experiences. 

 

Messaging Portal

 

Broadcast Messenger. A robust white-label bulk communication tool offering cost-effective, compliant messaging that fosters creativity without compromising on restrictions. 

 

Mexedia Messenger. A two-way messenger platform providing enterprises with full control of their communication in a branded, familiar and secure solution. 

 

2FA & OTP: Empowers enterprises with an extra layer of security for user logins, mitigating the risk of fraudulent website access. The API facilitates user identity confirmation through OTP sent via SMS, ensuring a secure process where users validate received codes. Enables enterprises to bolster security, authenticate user identities and minimize the vulnerability to unauthorized access attempts. 

 

Value-Added Services. The Mexedia Companies’ automated messaging software offers the value-added services described below.

 

Optimyze™: Phone number verification and filtering solution integrated within the SMS platform for efficient database management. Particularly important for enterprises with large phone number databases that are constantly being updated. Continuous database maintenance and updates mitigates unnecessary costs, with an automatic provision of invalid numbers via API ensuring seamless, manual-free updates to in-house systems. 

 

Number Validation: Powerful tool ensuring an up-to-date customer number database, supporting smart decisions and cost savings crucial for business efficiency. Enterprises benefit from the tool’s capability to facilitate smart decision-making, fostering cost savings. Streamline number validation with automated routines and logical checks, effortlessly filtering out invalid numbers from the phone number database. 

 

UN5UB™: Provides enterprises with an opt-out solution, allowing their customers to easily choose not to receive messages. Fully multilingual tool offering extensive customization options, including branding, 2FA message, buttons and an optional unsubscribe reason in various formats. 

 

Subscribe: Facilitates seamless engagement with subscribers, verifying mobile numbers via two-factor authentication. Facilitates a GDPR-compliant method to seamlessly and securely transition subscribers from various channels to a designated mobile number list, enabling subsequent messaging through SMS or IM campaigns. 

 

Strengths and Weaknesses

 

We believe our company possesses the following competitive strengths and weaknesses:

 

Competitive Strengths

 

we enjoy a strong customer retention track record. 

our Enterprise customer base engages in an array of industries, including fintech, igaming, banking, finance and healthcare. 

our services offerings are of a high quality and the quality of our customer service is high. 

we enjoy relatively low overhead costs. 

 

Competitive Weaknesses

 

our brand name recognition is not as strong as many of our competitors. 

our capital levels vary during operating periods, which causes our revenues to fluctuate and, during period of low capital levels, to be impaired. 

our debt payment obligations under our credit facility agreement could, over time, impair our cash flows available for operations. 

 

Cyber Risk Management and Strategy

 

We use, store and process data for and about our customers, employees, partners and suppliers. We have not yet implemented a formal cybersecurity risk management program designed to identify, assess and mitigate risks from cybersecurity threats to this data, our systems and business operations. We intend to implement a cybersecurity risk management program during 2025.

 

Risks from cybersecurity threats have, to date, not materially affected us, our business strategy, results of operations or financial condition.

 

Regulatory Considerations

 

Mexedia Florida and Mexedia DAC are subject to varying degrees of regulation, as discussed below.


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Mexedia Florida. Telecommunication operators in Florida are primarily regulated under Chapter 364, Florida Statutes and are subject to the supervisory powers of the Public Service Commission (“PSC”). Currently, With the approval of the “Regulatory Reform Act” (“Act”), effective July 1, 2011, most of the PSC retail oversight authority over the telecommunications wireline companies were eliminated, yet the PSC’s authority over telco operators issues was maintained. The Act eliminated most of the retail regulation of local exchange telecommunications services by the PSC, including the elimination of rate caps on all retail telecommunications services; elimination of telecommunications-related consumer protection and assistance duties of the PSC; and elimination of the PSC’s remaining oversight of telecommunications service quality.

 

Incumbent local exchange companies and competitive local exchange companies enter into interoperators contracts, which are generally called interconnection agreements. Parties to interconnection agreements are expected to negotiate rates, terms, and conditions wherever possible, and to petition the PSC in the event an agreement cannot be reached. Pursuant to Florida Regulation and U.SA. Federal regulation, Mexedia Florida is entitled to freely carry out its telecommunication business without the need to obtain any authorization, license or certification.

 

Mexedia DAC.

 

The UE Regulatory Framework. At EU level, the framework on telecommunications regulation includes Directives, Regulations, Recommendations and Communications.

 

The telecommunication market started to be liberalized to competition in the early 90’s and, in particular, the competition of public voice telephony and public network infrastructure began in 1998.

 

The previous regulatory framework proved to be inadequate towards the new market needs and, therefore, a new set of Directives was adopted in 2002, regulating all forms of fixed and wireless telecommunications, data transmission and broadcasting:

 

Framework Directive (Directive 2002/21/EC of the European Parliament and of the Council of 7 March 2002), adopted in order to establish a common regulatory framework for electronic communications networks and services. The Framework Directive obliges, among other things, National Regulatory Authorities to run market analyses before imposing appropriate obligations on individual operators having Significant Market Power (“SMP”), to ensure a competitive market; 

 

Authorization Directive (Directive 2002/20/EC of the European Parliament and of the Council of 7 March 2002) concerning authorizations for electronic communications networks and services. Such Directive sets out that the provision of electronic communications networks or the provision of electronic communications services may only be subject to a general authorization. As a consequence, authorized undertakings are entitled to (i) provide electronic communications networks and services and (ii) have their application for the necessary rights to install facilities considered. Furthermore, undertakings providing for electronic communication networks have the right to negotiate interconnection with, and where applicable obtain access to or interconnection from, other providers of publicly available communications networks and services covered by a general authorization anywhere in the Europe under the conditions of and in accordance with the Access Directive; 

 

Access Directive (Directive 2002/19/EC of the European Parliament and of the Council of 7 March 2002) concerning the access to and interconnection of electronic communications networks and associated facilities. In this regard, operators of public communications networks have a right and, when requested by other authorized undertakings, an obligation to negotiate interconnection with each other for the purpose of providing publicly available electronic communications services, in order to ensure provision and interoperability of services throughout the Community; 

 

Universal Service Directive (Directive 2002/22/EC of the European Parliament and of the Council of 7 March 2002) regulating the universal service and users’ rights relating to electronic communications networks and services; 

 

E-Privacy Directive (Directive 2002/58/EC of the European Parliament and of the Council of 12 July 2002) regarding the processing of personal data and the protection of privacy in the electronic communications sector. Aim of such Directive is to ensure an equivalent level of protection of  


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fundamental rights and freedoms, and in particular the right to privacy, with respect to the processing of personal data in the electronic communication sector and to ensure the free movement of such data and of electronic communication equipment and services in the Community.

 

Once again, the EU legal framework was revised in 2009, with the aim of defining a new European regulatory framework for the sector, adapting it to the constant evolving needs of the market. In particular the following Directives were adopted:

 

Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009, which has partially amended the Framework Directives, the Access Directive and the Authorization Directive; 

 

Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009, which has partially amended the Universal Service Directive, the E-Privacy Directive and Regulation (EC) No 2006/2004 on cooperation between national authorities responsible for the enforcement of consumer protection laws. 

 

Legislation in Ireland. The primary legal sources for the regulation of the telecommunications sector in Ireland are the following:

 

the Telecommunications (Miscellaneous Provisions) Act, 1996, that made provision for the establishment of the office of Director of Telecommunications Regulation, for the transfer of functions from the Minister to the Director, for the imposition of a levy on providers of telecommunications services and for the regulation of tariffs for certain telecommunications services. In addition, the act amended the Postal and Telecommunications Services Act, 1983, and provided for related matters; 

 

the Communications Regulation Act, 2002 that provides for the establishment of a body to be known as the Commission for Communications Regulation, for the definition of its functions, for the dissolution of the office of the Director of Telecommunications Regulation, for the transfer of the functions of the Director of Telecommunications Regulation to the Commission for Communications Regulation. In addition, the act established further provisions in respect of the opening of public roads for electronic communications infrastructure, provided for the sharing of infrastructure, repealed certain enactments and provisions of enactments and provided for connected matters; 

 

the Communications Regulation (Amendment) Act 2007 that amended (i) the Communications Regulation Act 2002 in order to confer additional functions on the Commission for Communications Regulation; 

 

the S.I. No. 333/2011 - European Communities (Electronic Communications Networks and Services) (Framework) Regulations 2011, giving effect to the Framework Directive, and the amendments to that Directive as introduced by Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009; 

 

the S.I. No. 334/2011 - European Communities (Electronic Communications Networks and Services) (Access) Regulations 2011, giving effect to the Access Directive, and the amendments to that Directive as introduced by Directive 2009/140/EC of the European Parliament and of the Council of 25 November 2009; 

 

the S.I. No. 335/2011 - European Communities (Electronic Communications Networks and Services) (Authorization) Regulations 2011, giving effect to the Authorization Directive, and the amendments to that Directive as introduced by Directive 2009/140/ EC of the European Parliament and of the Council of 25 November 2009; 

 

the S.I. No. 336/2011 - European Communities (Electronic Communications Networks and Services) (Privacy and Electronic Communications) Regulations 2011, giving effect to the Eprivacy Directive, and the amendments to that Directive as introduced by Directive 2009/136/EC of the European Parliament and of the Council of 25 November 2009. 


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Pursuant to the foregoing rules, Mexedia DAC was authorized to provide electronic communications services in Ireland by means of an authorization granted by the Irish Commission for Communications Regulation on April 26, 2018.

 

Competition

 

Our telco operations are conducted in a highly competitive market, characterized by the presence of numerous competitors that operate in the sector of telecommunications electronic termination services, both at national and international levels. We may not be successful in competing against these competitors, many of whom have longer operating histories, significantly greater financial stability and better access to capital markets and credit than we do. There is no assurance that we will be able to compete successfully against our competition.

 

Intellectual Properties

 

We do not own any patents. We are the owner of proprietary software programs and numerous tradenames, including “Mexedia” and “Telvantis,” for which we intend to apply for a trademark from the USPTO, in the near future.

 

Properties

 

Mexedia Florida leases approximately 1.100 square feet of office space in Miami Beach, Florida, at a monthly rental of $4.750. Our principal corporate offices are located at this location. These premises are expected to be adequate for the operations of Mexedia DAC, as well as for our company’s principal corporate officers, for the foreseeable future.

 

Mexedia DAC leases approximately 1.000 square feet of office space in Dublin, Ireland, at a monthly rental of $5.240. These premises are expected to be adequate for the operations of Mexedia DAC for the foreseeable future.

 

We own no real property.

 

Employees

 

We have 12 employees, including our executive officers. We believe our relations with our employees to be good and have never experienced a work stoppage.

 

MANAGEMENT’S DISCUSSION AND ANALYSIS OF

FINANCIAL CONDITION AND RESULTS OF OPERATIONS

 

Cautionary Statement

 

The following discussion and analysis should be read in conjunction with our unaudited financial statements and related notes, beginning on page F-1 of this Offering Circular.

 

Our actual results may differ materially from those anticipated in the following discussion, as a result of a variety of risks and uncertainties, including those described under Cautionary Statement Regarding Forward-Looking Statements and Risk Factors. We assume no obligation to update any of the forward-looking statements included herein.

 

Recent Change in Control

 

Effective October 8, 2024, a change in control of our company, in connection with our acquisitions (the Mexedia Acquisitions) of Mexedia, Inc., a Florida corporation with its operations headquartered in Miami, Florida (Mexedia Florida), and Mexedia DAC, an Ireland corporation now wholly owned by Mexedia Florida (Mexedia DAC) (Mexedia Florida and Mexedia DAC are referred to as the Mexedia Companies). Following these transactions, Mexedia SPA controls our company.

 

Also In connection with the Mexedia Acquisitions, Jacob DiMartino resigned as the Sole Director and Officer of our company and the following persons were appointed: Daniel Contreras, Chief Executive Officer and Director;


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Orlando Taddeo, President and Director; and Daniel Gilcher, Chief Financial Officer, Secretary, Treasurer and Director. (See “Directors, Executive Officers, Promoters and Control Persons”).

 

Acquisitions of the Mexedia Companies. Pursuant to separate Share Exchange Agreements (the “Acquisition Agreements”), we acquired 100% ownership of Mexedia Florida by the issuance of 40,000 shares of Series F Preferred Stock to Mexedia SPA and 100% ownership of Mexedia DAC by the issuance of 35,000 shares of Series F Preferred Stock to Mexedia SPA. Except for the consideration paid under the Acquisition Agreements, the Acquisition Agreements are substantially identical and contain the following provisions, among other customary provisions:

 

Regulation A Offering. Should we fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before October 28th, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements. This condition subsequent has been waived by Mexedia SPA.

 

Reg A Offering Proceeds. Should we fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements.

 

Divestiture. Should we fail to have divested of our pre-closing operations, which divestiture shall include all debts, other than the trade payables of our company, as of the closing date of the Mexedia Acquisitions, on or before December 31, 2024, Mexedia SPA shall have the right, but not the obligation, to rescind the Acquisition Agreements.

 

Redemption Agreement. In connection with the Acquisition Agreements, our company and JanBella entered into the Redemption Agreement, pursuant to which JanBella sold 100% of the then-outstanding shares of Series E Preferred Stock to our company in exchange for the Redemption Note.

 

The principal amount of the Redemption Note is $540,000, with interest at 8% per annum and a maturity date of October 8, 2025. Under the Redemption Note, we are required to pay, on a monthly basis, 40% of the proceeds from the Reg A Offering that exceeds $100,000, until the principal and interest shall have been paid.

 

Following the date of payment in full of the principal balance of the Redemption Note (the “Balance Date”), we are to pay JanBella up to an additional $1,260,000 as additional principal (the “Additional Principal”), whether through monthly payments of 10% of Reg A Offering proceeds and/or, for a period of 18 months immediately following the issue date of the Redemption Note, 10% of funds obtained by our company from any third-party.

 

Pledge Agreement and Guaranty. In connection with the Acquisition Agreements, JanBella and Mexedia SPA entered into a pledge agreement (the “Pledge Agreement”) and a guaranty (“Guaranty”) with respect to our company’s obligations under the Redemption Note. Specifically, the Pledge Agreement and the Guaranty relate to our company’s timely payment of the $540,000 principal balance and accrued interest on the Redemption Agreement.

 

Share Cancellation Agreements. In connection with the Acquisition Agreements, our company entered into three separate share cancellation agreement (the “Share Cancellation Agreements”) with Dean Richards, Brenda Whitman and Christina Upham, respectively. Pursuant to the Share Cancellation Agreements, a total of 1,700,000,000 shares of our common stock were cancelled.

 

Series F Preferred Stock. Also in conjunction with the Mexedia Acquisitions, we designated a new Series F Preferred Stock and issued a total of 75,000 shares of such Series F Preferred Stock to Mexedia SPA, which now controls our company through its ownership of the Series F Preferred Stock. (See “Description of Securities-Series F Preferred Stock”).

 

New Business Focus

 

Following the acquisitions of the Mexedia Companies, our company has adopted the business plan of the Mexedia Companies as our company’s new business focus. Our prior business operations centered around an anti-bulling App known as “RAADR” are to be divested, in accordance with the Acquisition Agreements, which divestiture is expected to occur prior to the end of December 2024.


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Our company now operates as a holding company in the telecommunications sector. Mexedia Florida and Mexedia DAC are intermediary operators that sell “segments” of telephone connections, taking place between a “calling” user and a “called” user, to other Telco operator or mobile operators. As telco operators, the volume of their revenues is closely linked to the number of interconnection agreements entered into with commercial partners, e.g. commercial contracts between telecom operators with the aim of interconnecting networks and exchanging services. (See “Business”).

 

Plan of Operation

 

In connection with our acquisitions of the Mexedia Companies, our company now operates as a holding company in the telecommunications sector. Mexedia Florida and Mexedia DAC are intermediary operators that sell “segments” of telephone connections, taking place between a “calling” user and a “called” user, to other Telco operator or mobile operators. As telco operators, the volume of their revenues is closely linked to the number of interconnection agreements entered into with commercial partners, e.g. commercial contracts between telecom operators with the aim of interconnecting networks and exchanging services.

 

In addition, we believe that there are available significant business acquisition opportunities within our industry segment. It is our estimation that any such acquisition opportunity would require us to deliver funds as part of the acquisition. Should we sell at least 50% of the Offered Shares in this offering, our management believes our company would be positioned to make one or more such acquisitions (no current agreement, written or otherwise exists, in this regard). However, there is no assurance that we will obtain sufficient funds in this offering, or from other sources, that would permit us to make any such acquisition.

 

With the proceeds of this offering, we intend to increase our working capital position, such that we will be able to increase our revenues, which are, in large measure, a function of our levels of available working capital, from time to time.

 

We believe that the proceeds of this offering will satisfy our cash requirements for at least the next twelve months.

 

Basis of Presentation

 

Effective October 8, 2024, our company acquired the Mexedia Companies. From at least 2012 until our acquisition of the Mexedia Companies, our company had not been a “shell company.” However, during that extended period of time, our company did not generate significant revenues.

 

In addition to information concerning our company, this section presents information concerning the each of the Mexedia Companies, Mexedia Florida and Mexedia DAC, for the periods and as of the dates indicated.

 

Beginning with the fourth quarter of 2024, the operating results and financial condition of our company will reflect those of the Mexedia Companies.

 

Results of Operations

 

Our Company

 

Pursuant to the Acquisition Agreements, our operations as they existed prior to the October 8, 2024, acquisitions of the Mexedia Companies are to be divested on or before December 31, 2024. We expect such divesture to occur during December 2024. Our reported operating results and financial condition from October 8, 2024, forward will, due to the relatively insignificant operations of our company prior to such date, reflect those of Mexedia Florida and Mexedia DAC.

 

Six Months Ended June 30, 2024 (Interim 2024 and 2023 (Interim 2023). During Interim 2024, our completed RAADR App and had a small number of non-paying users. While the RAADR App is currently available in the Apple Store, due to a lack of capital, we have not yet commenced marketing and sales activities.

 

Revenues. For Interim 2024 and Interim 2023, we did not generate any revenues, due to a lack of available funds with which to implement our planned marketing strategies.


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Operating Expenses. For Interim 2024, our operating expenses totaled $267,730 (unaudited) and consisted of $90,000 (unaudited) in executive compensation and $177,730 (unaudited) in general and administrative expenses. For Interim 2023, our operating expenses totaled $414,606 (unaudited) and consisted of $595 (unaudited) in advertising and marketing, $90,000 (unaudited) in executive compensation and $324,011 (unaudited) in general and administrative expenses. The reduced levels of operating expenses during Interim 2024 were attributable directly to our lack of available capital.

 

Loss From Operations. For Interim 2024 and Interim 2023, we incurred a loss from operations of $267,730 (unaudited) and $414,606 (unaudited), respectively.

 

Other Income (Expense). For Interim 2024, we reported other income of $6,932,408 (unaudited), which as comprised of $5,460,066 (unaudited) in gain from write off of debt and gain on change in fair value of derivative liabilities of $1,683,018 (unaudited) that was offset by a loss on anti-dilution clause of $18,950 (unaudited) and interest expense of $191,726 (unaudited).

 

For Interim 2023, we reported other income of $3,036,096 (unaudited), which as comprised of $3,210,348 (unaudited) in gain from write off of debt that was offset by interest expense of $174,252 (unaudited).

 

Net Profit. For Interim 2024, we reported a net profit of $6,664,678 (unaudited), due primarily to gain on write off of debt of $5,460,066 (unaudited) and a gain on change in fair value of derivatives of $1,683,018 (unaudited).

 

For Interim 2023, we reported a net profit of $2,621,490 (unaudited), due primarily to a gain on change in fair value of derivatives of $3,210,348.

 

Years Ended December 31, 2023 and 2022. During 2023, we completed the development of our RAADR App and had a small number of non-paying users. While the RAADR App is currently available in the Apple Store, due to a lack of capital, we have not yet commenced marketing and sales activities.

 

Revenues. For the years ended December 31, 2023 and 2022, we did not generate any revenues, due to a lack of available funds with which to implement our planned marketing strategies.

 

Operating Expenses. For the year ended December 31, 2023, our operating expenses totaled $539,412 (unaudited) and consisted of $180,000 (unaudited) in executive compensation and $359,412 (unaudited) in general and administrative expenses. For the year ended December 31, 2022, our operating expenses totaled $1,098,038 (unaudited) and consisted of $42,729 (unaudited) in advertising and marketing, $180,000 (unaudited) in executive compensation, $268,424 (unaudited) in general and administrative expenses and $606,885 (unaudited) in professional fees. The reduced levels of operating expenses during 2023 were attributable directly to our lack of available capital.

 

Loss From Operations. For the years ended December 31, 2023 and 2022, we incurred a loss from operations of $539,412 (unaudited) and $1,098,038 (unaudited), respectively.

 

Other Income (Expense). For the years ended December 31, 2023 and 2022, we reported other expense of $488,599 (unaudited) and other income of $2,952,101 (unaudited), respectively.

 

Net Loss. For the year ended December 31, 2023, we incurred a net loss of $50,813 (unaudited), due to loss on forbearance agreement of $2,720,00 (unaudited), loss on anti-dilution clause of $270,542 (unaudited), loss on change in fair value of derivatives of $3,828,593 (unaudited) and interest expense of $349,452 (unaudited).

 

For the year ended December 31, 2022, we incurred a net loss of $4,050,139 (unaudited), due to a loss from operations of $1,098,038 (unaudited), plus $573,368 (unaudited) in interest expenses and $2,378,733 (unaudited) loss on change in fair value of derivatives.

 

 

 


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Mexedia Florida

 

Six Months Ended June 30, 2024 (“Interim 2024” and 2023 (“Interim 2023”).

 

Revenues. For Interim 2024 and Interim 2024, Mexedia Florida generated revenues of $17,663,834 (unaudited) and $100,000,366 (unaudited).

 

Cost of Sales. For Interim 2024 and Interim 2024, Mexedia Florida incurred cost of sales of $16,948,183 (unaudited) and $96,485,394 (unaudited), respectively.

 

Gross Profit. For Interim 2024 and Interim 2024, Mexedia Florida reported a gross profit of $715,651 (unaudited) and $3,514,972 (unaudited), respectively.

 

Operating Expenses. For Interim 2024, Mexedia Florida operating expenses totaled $1,352,490 (unaudited) and consisted of $564,000 (unaudited) in depreciation and amortization and $787,940 (unaudited) in general and administrative expenses. For Interim 2023, Mexedia Florida operating expenses totaled $1,483,558 (unaudited) and consisted of $23,428 (unaudited) in other expenses and $1,460,130 (unaudited) in general and administrative expenses.

 

Profit/Loss From Operations. For Interim 2024 and Interim 2023, Mexedia Florida incurred a loss from operations of $636,839 (unaudited) and reported a net profit from operations of $2,031,414 (unaudited), respectively.

 

Net Profit/Loss. For Interim 2024, we incurred a net loss of $630,531 (unaudited). For Interim 2023, we reported a net profit of $1,271,469 (unaudited).

 

Years Ended December 31, 2023 and 2022.

 

Revenues. For the years ended December 31, 2023 and 2022, Mexedia Florida generated $215,325,822 (unaudited) and $276,535 (unaudited) in revenues, respectively.

 

Cost of Sales. For the years ended December 31, 2023 and 2022, Mexedia Florida incurred cost of sales of $207,738,077 (unaudited) and $-0- (unaudited), respectively.

 

Gross Profit. For the years ended December 31, 2023 and 2022, Mexedia Florida reported a gross profit of $7,587,745 (unaudited) and $276,535 (unaudited), respectively.

 

Operating Expenses. For the year ended December 31, 2023, Mexedia Florida operating expenses totaled $3,797,790 (unaudited) and consisted of $1,703,710 (unaudited) in salaries and benefits, $326,550 (unaudited) in professional fees, $200,971 (unaudited) in bad debt expense, $1,129,100 (unaudited) in amortization expense and $437,459 (unaudited) in other operating expenses. For the year ended December 31, 2022, Mexedia Florida operating expenses totaled $439,270 (unaudited) and consisted of $148,265 (unaudited) in salaries and benefits, $35,575 (unaudited) in professional fees and  $255,430 (unaudited) in other operating expenses.

 

Profit/Loss From Operations. For the years ended December 31, 2023 and 2022, Mexedia Florida reported a profit from operations of $3,789,955 (unaudited) and incurred an loss from operations of $162,735 (unaudited), respectively.

 

Other Expenses. For the year ended December 31, 2023, Mexedia Florida reported finance costs of $1,928,631 (unaudited) and tax expense of $528,344.

 

Net Profit/Loss. For the year ended December 31, 2023, we reported a net profit of $1,332,983 (unaudited). For the year ended December 31, 2022, we incurred a net loss of $162,735.

 

Mexedia DAC

 

Six Months Ended June 30, 2024 (“Interim 2024” and 2023 (“Interim 2023”).

 

Revenues. For Interim 2024 and Interim 2024, Mexedia DAC generated revenues of $19,290,476 (unaudited) and $39,768,401 (unaudited).


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Cost of Sales. For Interim 2024 and Interim 2024, Mexedia DAC incurred cost of sales of $17,729,909 (unaudited) and $35,091,883 (unaudited), respectively.

 

Gross Profit. For Interim 2024 and Interim 2024, Mexedia DAC reported a gross profit of $1,560,567 (unaudited) and $4,676,519 (unaudited), respectively.

 

Operating Expenses. For Interim 2024, Mexedia DAC operating expenses totaled $676,772 (unaudited) comprised entirely of general and administrative expenses. For Interim 2023, our operating expenses totaled $1,717,390 (unaudited) comprised entirely of general and administrative expenses.

 

Profit From Operations. For Interim 2024 and Interim 2023, Mexedia DAC reported a profit from operations of $883,795 (unaudited) and $2,959,129 (unaudited), respectively.

 

Other Income/Expense. For Interim 2024 and Interim 2023, Mexedia DAC incurred finance costs of $3,100,749 (unaudited) and $1,786,459 (unaudited), respectively, other non-operating income of $80,812 (unaudited) and $3,466 (unaudited), respectively, and other non-operating expense of $292,567 (unaudited) and $99,042 (unaudited), respectively.

 

Net Profit/Loss. For Interim 2024, Mexedia DAC incurred a net loss of $2,428,709 (unaudited). For Interim 2023, Mexedia DAC reported a net profit of $942,456 (unaudited).

 

Years Ended December 31, 2023 and 2022. During 2023, we completed the development of our RAADR App and had a small number of non-paying users. While the RAADR App is currently available in the Apple Store, due to a lack of capital, we have not yet commenced marketing and sales activities.

 

Revenues. For the years ended December 31, 2023 and 2022, Mexedia DAC generated revenues of $112,626,233 (unaudited) and $140,871,413 (unaudited), respectively.

 

Cost of Sales. For the years ended December 31, 2023 and 2022, Mexedia DAC incurred cost of sales of $102,949,336 (unaudited) and $127,696,740 (unaudited), respectively.

 

Gross Profit. For the years ended December 31, 2023 and 2022, Mexedia DAC reported a gross profit of $9,676,897 (unaudited) and $13,714,673 (unaudited), respectively.

 

Operating Expenses. For the year ended December 31, 2023, Mexedia DAC operating expenses totaled $3,823,761 (unaudited) comprised entirely of general and administrative expenses. For the year ended December 31, 2022, Mexedia DAC operating expenses totaled $4,107,763 (unaudited) comprised entirely of general and administrative expenses.

 

Profit From Operations. For the years ended December 31, 2023 and 2022, we reported a profit from operations of $6,023,934 (unaudited) and $9,063,928 (unaudited), respectively.

 

Other Expenses. For the years ended December 31, 2023 and 2022, we incurred interest payable and other similar expenses of $4,402,570 (unaudited) and $9,063,928 (unaudited), respectively.

 

Net Profit. For the year ended December 31, 2023, we reported a net profit of $1,431,309 (unaudited) and $5,263,323 (unaudited), respectively.

 

Financial Condition, Liquidity and Capital Resources

 

Our Company

 

At June 30, 2024. At June 30, 2024, our company had $2,966 (unaudited) in cash and a working capital deficit of $3,587,569 (unaudited), compared to December 31, 2023, when our company had $13,364 in cash and a working capital deficit of $10,341,129 (unaudited).

 

At December 31, 2023. At December 31, 2023, our company had $13,364 (unaudited) in cash and a working capital deficit of $10,341,129 (unaudited), compared to December 31, 2022, when our company had $871 in cash and a working capital deficit of $13,720,218 (unaudited).


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Mexedia Florida

 

At June 30, 2024. At June 30, 2024, Mexedia Florida had $46,041 (unaudited) in cash and a working capital deficit of $4,896,852 (unaudited), compared to December 31, 2023, when Mexedia Florida had $24,303 in cash and a working capital deficit of $5,408,158 (unaudited).

 

At December 31, 2023. At December 31, 2023, Mexedia Florida had $24,303 (unaudited) in cash and a working capital deficit of $5,408,158, (unaudited), compared to December 31, 2022, when Mexedia Florida had $25,267 in cash and working capital of $2,551,396 (unaudited).

 

Mexedia DAC

 

At June 30, 2024. At June 30, 2024, Mexedia Florida had $82,067 (unaudited) in cash and a working capital deficit of $1,993,676 (unaudited), compared to December 31, 2023, when Mexedia DAC had $98,617 in cash and working capital of $1,880,454 (unaudited).

 

At December 31, 2023. At December 31, 2023, Mexedia Florida had $98,617 (unaudited) in cash and working capital of $1,880,454 (unaudited), compared to December 31, 2022, when Mexedia DAC had $2,307,680 in cash and working capital of $5,358,636 (unaudited).

 

Recent Transactions Affecting Our Balance Sheet

 

Share Cancellation Agreements. In connection with the Acquisition Agreements, our company entered into the Share Cancellation Agreements, pursuant to which a total of 1,700,000,000 shares of our common stock were cancelled in October 2024.

 

Settlement of Convertible Promissory Notes. During October and November 2024, we entered into settlement agreements with each holder of our outstanding convertible promissory notes, all of which had conversion rights at conversion prices averaging approximately 60% below market prices for our common stock. Pursuant to these agreements, we issued a total of 2,273,000,000 shares in payment of a total of approximately $1,053,817 of indebtedness, including default interest and penalties, represented by such convertible promissory notes.

 

Contractual Obligations

 

To date, we have not entered into any significant long-term obligations that require us to make monthly cash payments.

 

Capital Expenditures

 

We made no capital expenditures during the six months ended June 30, 2024, nor during the year ended December 31, 2023. Without the proceeds from this offering, or from other sources, no such expenditures are expected to be made during the remainder of 2024 or the first half of 2025.

 

 

 

 

 

 

 

 

 

 

 


36


 

DIRECTORS, EXECUTIVE OFFICERS, PROMOTERS AND CONTROL PERSONS

 

Directors and Executive Officers

 

The following table sets forth certain information concerning our company’s executive management.

 

Name

 

Age

 

Position(s)

Daniel Contreras

 

66

 

Chief Executive Officer and Director

Orlando Taddeo

 

50

 

President and Director

Daniel Gilcher

 

37

 

Chief Financial Officer, Secretary, Treasurer and Director

 

Our company’s Board of Directors appoints our executive officers. Our directors serve until the earlier occurrence of the election of their respective successors at the next meeting of shareholders, death, resignation or removal by the Board of Directors. Officers serve at the discretion of our Board of Directors. There exist no family relationships between the listed officers and directors. Certain information regarding the backgrounds of each of our officers and directors is set forth below.

 

Daniel Contreras - Chief Executive Officer and Director. Mr. Contreras is a multi-cultural financial executive with over 30 years of experience with Global 500 and start-up companies in the Telecom/Technology/FinTech sectors, developing them from design to multimillion dollar enterprises. Mr. Contreras is a strategic and entrepreneurially-driven global financial management leader with strong expertise in developing multi-functional teams with an applied management style.

 

Prior to the Mexedia Acquisitions, Mr. Contreras served as CEO for Mexedia Florida, providing financial services to companies in the telecom and technology sector.  Previously, has was CEO and CFO of the “CIMA Telecom Group” of companies, a $1.4B international, privately-held integrated telecommunications services group based in Coral Gables, Florida. From 1994 to 2000, he served as VP Finance & Administration for “start-up” AmericaTel, where he was instrumental in developing the company from the ground up to a multinational telecommunication services provider, and with over $350 million in annualized revenues. From 1990 and 1994, Mr. Contreras was Financial Manager of Minera Escondida, the largest copper ore mine operation and foreign direct investment in Chile. Previously to that, Mr. Contreras held the position of Financial Controller responsible for the Country of Chile’s financial operations for ING Bank (Netherlands) and worked as a Bank Analyst for Regions Bank (f/k/a Landmark Bancshares in St. Louis, Missouri). He holds a Bachelor of Science Degree in Business Administration with Emphasis in Finance from St. Louis University, St. Louis, Missouri, and a Master Degree in Business Administration (MBA) from Fontbonne University, St. Louis, Missouri.

 

Orlando Taddeo - President and Director. Born in Formia, Italy, in 1974, Mr. Taddeo is an entrepreneur who has been a key player in successful ventures in the innovation and telecommunications market for 30 years, both in Italy and abroad. In recent years, he has led the growth of Airtime Partecipazioni, a publicly-traded company in Paris, which, last May, changed its name to “Mexedia” (Mexedia SPA) and became a Benefit Company, leading it to now being a tech company that offers innovative technologies in an integrated ecosystem that allows it to manage all customer communication activities. Since 2021, he has been a member of the B20, the business forum through which companies and their associations produce policy recommendations for the G20, and which represents 6.5 million companies from all sectors and all sizes.

 

Daniel Gilcher - Chief Financial Officer, Secretary Treasurer and Director. Mr. Gilcher currently serves as Chief Financial Officer of Mexedia SPA. Prior to joining Mexedia SPA, Mr. Gilcher served as the Interim CFO for a digital healthcare company from Israel, where he was responsible for complex capital raising structures and a going-public transaction. Prior to these operational roles, he advised a broad range of global companies on capital allocation and other strategic initiatives, including as the responsible party of a special situations fund. Mr. Gilcher’s career started as a buy-side equity analyst and portfolio manager for small/mid caps in Frankfurt, Germany. He received his MBA from the Indian Institute of Management, Ahmedabad, India. He also holds an MSc in Finance from EBS University, Germany, where he was a Gold Scholar. Mr. Gilcher graduated in 2009 from Johannes-Gutenberg University, Mainz, Germany, with an M.A. in Politics, Psychology and Philosophy.

 

Conflicts of Interest

 

At the present time, we do not foresee any direct conflict between our officers and directors, their other business interests and their involvement in our company.


37


 

Corporate Governance

 

We do not have a separate Compensation Committee, Audit Committee or Nominating Committee. These functions are conducted by our Board of Directors acting as a whole.

 

During the year ended December 31, 2023, our Board of Directors did not hold a meeting, but took all necessary actions by written consent in lieu of a meeting.

 

Independence of Board of Directors

 

None of our Directors is independent, within the meaning of definitions established by the SEC or any self-regulatory organization. We are not currently subject to any law, rule or regulation requiring that all or any portion of our Board of Directors include independent directors.

 

Shareholder Communications with Our Board of Directors

 

Our company welcomes comments and questions from our shareholders. Shareholders should direct all communications to our Chief Executive Officer, Daniel Contreras, at our executive offices. However, while we appreciate all comments from shareholders, we may not be able to respond individually to all communications. We attempt to address shareholder questions and concerns in our press releases and documents filed with OTC Markets, so that all shareholders have access to information about us at the same time. Mr. Contreras collects and evaluates all shareholder communications. All communications addressed to our directors and executive officers will be reviewed by those parties, unless the communication is clearly frivolous.

 

Code of Ethics

 

As of the date of this Offering Circular, our Board of Directors has not adopted a code of ethics with respect to our directors, officers and employees.

 

EXECUTIVE COMPENSATION

 

As of the date of this Offering Circular, there are no annuity, pension or retirement benefits proposed to be paid to officers, directors or employees of our company, pursuant to any presently existing plan provided by or contributed to by our company.

 

The following table summarizes information concerning the compensation awarded, paid to or earned by, our executive officers.

 

 

Name and Principal Position

Year

Ended

12/31

Salary

($)

Bonus

($)

Stock

Awards

($)

Option

Awards

($)

Non-Equity Incentive Plan Compensation

($)

Non-qualified

Deferred

Compensation

Earnings

($)

All Other Compen-

sation

($)

Total

($)

 

 

Jacob DiMartino

Former Chief

Executive Officer

2023

2022

180,000

180,000

---

---

---

---

---

---

---

---

---

---

---

---

180,000

180,000

 

 

Daniel Contreras(1)

Chief Executive Officer

2023

2022

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

 

 

Orlando Taddeo(1)

President

2023

2022

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

 

 

Daniel Gilcher(1)

Chief Financial Officer

and Secretary

2023

2022

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

---

 

 

(1)This officer did not take office until October 2024. 


38


 

Employment Agreements

 

We have not entered into an employment agreement with any of our executive officers. However, in the near future, it is expected that we will enter into an employment agreement with each of such persons, although none of the terms of such employment agreements has been determined.

 

Outstanding Option Awards

 

The following table provides certain information regarding unexercised options to purchase common stock, stock options that have not vested and equity-incentive plan awards outstanding as of the date of this Offering Circular, for each named executive officer.

 

 

Option Awards

Stock Awards

 

Name

Number of

Securities

Underlying

Unexercised

Options (#)

Exercisable

Number of

Securities

Underlying

Unexercised

Options (#)

Unexercisable

Equity

Incentive

Plan

Awards:

Number of

Securities

Underlying

Unexercised

Unearned

Options (#)

Option

Exercise

Price ($)

Option

Expiration

Date

Number of

Shares or

Units of

Stock That

Have Not

Vested (#)

Market

Value of

Shares or

Units of

Stock That

Have Not

Vested ($)

Equity

Incentive

Plan Awards:

Number of

Unearned

Shares, Units

or Other

Rights That

Have Not

Vested (#)

Equity

Incentive

Plan Awards:

Market or

Payout Value

of Unearned

Shares, Units

or Other

Rights That

Have Not

Vested ($)

 

Daniel Contreras

---

---

---

N/A

N/A

---

---

---

---

 

Orlando Taddeo

Daniel Gilcher

---

---

---

---

---

---

N/A

N/A

N/A

N/A

---

---

---

---

---

---

---

---

 

 

Long-Term Incentive Plans

 

We currently have no long-term incentive plans.

 

Director Compensation

 

Our directors receive no compensation for their serving in such capacity.

 

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT

 

Common Stock

 

The following table sets forth, as of the date of this Offering Circular, information regarding beneficial ownership of our common stock by the following: (a) each person, or group of affiliated persons, known by our company to be the beneficial owner of more than five percent of any class of our voting securities; (b) each of our directors; (c) each of the named executive officers; and (d) all directors and executive officers as a group. Beneficial ownership is determined in accordance with the rules of the SEC, based on voting or investment power with respect to the securities. In computing the number of shares beneficially owned by a person and the percentage ownership of that person, shares of common stock underlying convertible instruments, if any, held by that person are deemed to be outstanding if the convertible instrument is exercisable within 60 days of the date hereof.

 

 


39


 

 

Name of Shareholder

 

Number of

Shares

Beneficially

Owned

 

% Beneficially

Owned(1)

 

Number of

Shares

Beneficially

Owned

 

% Beneficially

Owned(2)

 

Effective

Voting Power

Common Stock

Executive Officers & Directors

 

 

 

 

 

 

 

 

 

 

Daniel Contreras

 

1,666,667(3)

 

*

 

1,666,667(4)

 

*

 

 

Orlando Taddeo(5)

 

18,188,781,983(6)

 

74.64%

 

24,305,281,983(7)

 

0%

 

See Note 13

and Note 14

Daniel Gilcher

 

133,333,333(8)

 

*

 

133,333,333(9)

 

*

 

 

Officers and directors, as a

 group (3 persons)

 

18,372,115,316(10)

 

75.41%

 

24,440,281,983(11)

 

81.51%

 

 

5% or Greater Shareholders

Mexedia S.p.A. S.B.(12)

 

17,988,781,983(6)

 

73.82%

 

22,488,793,983(7)

 

75.00%

 

 

Series F Preferred Stock(13)

Mexedia S.p.A. S.B.(12)

 

75,000

 

100%

 

75,000

 

100%

 

See Note 13

and Note 14

* Less than 1%

 

(1)Based on 24,368,375,977 shares outstanding, which includes (a) 5,996,260,661 issued shares and (b) 18,372,115,316 unissued shares that underlie currently convertible shares of Series F Preferred Stock and currently convertible promissory notes, before this offering. 

(2)Based on 29,985,054,644 shares outstanding, which includes (a) 7,496,260,661 issued shares, assuming the sale of all of the Offered Shares (including 383,333,000 Offered Shares issued in payment of $1,150,000 of convertible promissory notes – see “Use of Proceeds”), and (b) 22,488,793,983 unissued shares that underlie convertible shares of Series F Preferred Stock, after this offering. 

(3)None of the indicated shares is issued, but underlie a currently convertible promissory note.  (See “Use of Proceeds”). 

(4)Assumes the indicated shares are issued in this offering in payment of a promissory note. (See “Use of Proceeds”). 

(5)Mr. Taddeo is the President of Mexedia S.p.A. S.B., a publicly-held Italy corporation listed for trading on the Euronext Growth Paris exchange, of which he is also the majority shareholder. As President, Mr. Taddeo possesses dispositive and voting control of the shares of Series F Preferred Stock. 

(6)None of the indicated shares is issued, but underlie the currently convertible shares of Series A Preferred Stock (as to 17,988,781,983 of such shares) and currently convertible promissory notes (as to 200,000,000 of such shares) (See “Use of Proceeds”). 

(7)17,988,781,983 of such shares are not issued, but underlie the currently convertible shares of Series A Preferred Stock; assumes 200,000,000 of such shares are issued in this offering in payment of promissory notes. (See “Use of Proceeds”). 

(8)None of the indicated shares is issued, but underlie currently convertible promissory notes.  (See “Use of Proceeds”). 

(9)Assumes the indicated shares are issued in this offering in payment of promissory notes. (See “Use of Proceeds”). 

(10)None of the indicated shares is issued, but underlie the currently convertible shares of Series A Preferred Stock (as to 17,988,781,983 of such shares) and currently convertible promissory notes (as to 383,333,333 of such shares) (See “Use of Proceeds”). 

(11)17,988,781,983 of such shares are not issued, but underlie the currently convertible shares of Series A Preferred Stock; assumes 383,333,333 of such shares are issued in this offering in payment of promissory notes. (See “Use of Proceeds”). 

(12)Orlando Taddeo is the President of Mexedia S.p.A. S.B., a publicly-held Italy corporation listed for trading on the Euronext Growth Paris exchange, of which he is also the majority shareholder. As President, Mr. Taddeo possesses dispositive and voting control of the shares of Series F Preferred Stock. The address of this shareholder is Via di Affogalasino, 105, 00148 Rome, Italy. 

(13)Due to the superior voting rights of the Series F Preferred Stock, Orlando Taddeo, as the President of Mexedia S.p.A. S.B., the owner of all outstanding shares of the Series F Preferred Stock, will, therefore, be able to control the management and affairs of our company, as well as matters requiring the approval by our shareholders, including the election of directors, any merger, consolidation or sale of all or substantially all of our assets, and any other significant corporate transaction. 

(14)The holders of the Series F Preferred Stock, as a class, have voting rights in all matters requiring shareholder approval equal to 66.67% of all shares eligible to vote. Each share of Series F Preferred Stock shall be convertible at any time into a number of shares of our common stock that equals 0.001 percent (0.001%) of the number of issued and outstanding shares of our common stock outstanding on the date of conversion, such that 1,000 shares of Series F Preferred Stock would convert into one percent (1%) of the number of issued and outstanding shares of our common stock outstanding on the date of conversion. 


40


CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS

 

Change-in-Control Transaction

 

Effective October 8, 2024, a change in control of our company, in connection with our acquisitions (the Mexedia Acquisitions) of Mexedia, Inc., a Florida corporation with its operations headquartered in Miami, Florida (Mexedia Florida), and Mexedia DAC, an Ireland corporation now wholly owned by Mexedia Florida (Mexedia DAC) (Mexedia Florida and Mexedia DAC are referred to as the Mexedia Companies). Following these transactions, Mexedia SPA controls our company.

 

Also In connection with the Mexedia Acquisitions, Jacob DiMartino resigned as the Sole Director and Officer of our company and the following persons were appointed: Daniel Contreras, Chief Executive Officer and Director; Orlando Taddeo, President and Director; and Daniel Gilcher, Chief Financial Officer, Secretary, Treasurer and Director. (See “Directors, Executive Officers, Promoters and Control Persons”).

 

Acquisitions of the Mexedia Companies. Pursuant to separate Share Exchange Agreements (the “Acquisition Agreements”), we acquired 100% ownership of Mexedia Florida by the issuance of 40,000 shares of Series F Preferred Stock to Mexedia SPA and 100% ownership of Mexedia DAC by the issuance of 35,000 shares of Series F Preferred Stock to Mexedia SPA. Except for the consideration paid under the Acquisition Agreements, the Acquisition Agreements are substantially identical and contain the following provisions, among other customary provisions:

 

Regulation A Offering. Should we fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before October 28th, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements. This condition subsequent has been waived by Mexedia SPA.

 

Reg A Offering Proceeds. Should we fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, Mexedia SPA has the right, but not the obligation, to rescind the Acquisition Agreements.

 

Divestiture. Should we fail to have divested of our pre-closing operations, which divestiture shall include all debts, other than the trade payables of our company, as of the closing date of the Mexedia Acquisitions, on or before December 31, 2024, Mexedia SPA shall have the right, but not the obligation, to rescind the Acquisition Agreements.

 

Redemption Agreement. In connection with the Acquisition Agreements, our company and JanBella entered into the Redemption Agreement, pursuant to which JanBella sold 100% of the then-outstanding shares of Series E Preferred Stock to our company in exchange for the Redemption Note.

 

The principal amount of the Redemption Note is $540,000, with interest at 8% per annum and a maturity date of October 8, 2025. Under the Redemption Note, we are required to pay, on a monthly basis, 40% of the proceeds from the Reg A Offering that exceeds $100,000, until the principal and interest shall have been paid.

 

Following the date of payment in full of the principal balance of the Redemption Note (the “Balance Date”), we are to pay JanBella up to an additional $1,260,000 as additional principal (the “Additional Principal”), whether through monthly payments of 10% of Reg A Offering proceeds and/or, for a period of 18 months immediately following the issue date of the Redemption Note, 10% of funds obtained by our company from any third-party.

 

Pledge Agreement and Guaranty. In connection with the Acquisition Agreements, JanBella and Mexedia SPA entered into a pledge agreement (the “Pledge Agreement”) and a guaranty (“Guaranty”) with respect to our company’s obligations under the Redemption Note. Specifically, the Pledge Agreement and the Guaranty relate to our company’s timely payment of the $540,000 principal balance and accrued interest on the Redemption Agreement.

 

Share Cancellation Agreements. In connection with the Acquisition Agreements, our company entered into three separate share cancellation agreement (the “Share Cancellation Agreements”) with Dean Richards, Brenda Whitman and Christina Upham, respectively. Pursuant to the Share Cancellation Agreements, a total of 1,700,000,000 shares of our common stock were cancelled.


41


Series F Preferred Stock. Also in conjunction with the Mexedia Acquisitions, we designated a new Series F Preferred Stock and issued a total of 75,000 shares of such Series F Preferred Stock to Mexedia SPA, which now controls our company through its ownership of the Series F Preferred Stock. (See “Description of Securities-Series F Preferred Stock).

 

Officer Bonuses

 

In November 2024, the Company paid bonuses to its executive officers, as follows:

 

We issued a $50,000 principal amount convertible promissory note to our Chief Executive Officer, Daniel Contreras, in payment of a performance bonus. 

 

We issued a $300,000 principal amount convertible promissory note to our President, Orlando Taddeo, in payment of a performance bonus. 

 

We issued a $300,000 principal amount convertible promissory note to our President, Orlando Taddeo, in payment of a bonus associated with Mexedia DAC’s debt restructuring. 

 

We issued a $200,000 principal amount convertible promissory note to our Chief Financial Officer, Daniel Gilcher, in payment of a performance bonus (this note was issued in the name of Otus, LLC, a company owned by Mr. Gilcher). 

 

We issued a $200,000 principal amount convertible promissory note to our Chief Financial Officer, Daniel Gilcher, in payment of a bonus associated with Mexedia DAC’s debt restructuring (this note was issued in the name of Otus, LLC, a company owned by Mr. Gilcher). 

 

Each of these convertible promissory notes is convertible into Conversion Shares. (See “Use of Proceeds”).

 

Guaranty by Director

 

In November 2022, our former CEO, Jacob DiMartino, guaranteed our performance under a promissory note, $112,500 principal amount (the “JanBella Note”), issued to JanBella Group, LLC (“JanBella”), by which we obtained $100,000 in cash proceeds. As part of his guaranty, Mr. DiMartino pledged his shares of our then-outstanding Series E Preferred Stock, through which shares he possessed voting control of our company. At the time of our acquisition of the Mexedia Companies, we were in default under the JanBella Note. In conjunction with our acquisition of the Mexedia Companies, JanBella foreclosed on Mr. DiMartino’s pledge and, subsequently, entered into the Redemption Agreement.

 

LEGAL MATTERS

 

Certain legal matters with respect to the Offered Shares offered by this Offering Circular will be passed upon by Newlan Law Firm, PLLC. Newlan Law Firm, PLLC is the holder of two convertible promissory notes in the principal amounts of $60,000 and $40,000, respectively. These notes were issued by our company in payment of legal services, pursuant to a legal services agreement, and are convertible into Conversion Shares in this offering. (See “Use of Proceeds”).

 

WHERE YOU CAN FIND MORE INFORMATION

 

We have filed an offering statement on Form 1-A with the SEC under the Securities Act with respect to the common stock offered by this Offering Circular. This Offering Circular, which constitutes a part of the offering statement, does not contain all of the information set forth in the offering statement or the exhibits and schedules filed therewith. For further information with respect to us and our common stock, please see the offering statement and the exhibits and schedules filed with the offering statement. Statements contained in this Offering Circular regarding the contents of any contract or any other document that is filed as an exhibit to the offering statement are not necessarily complete, and each such statement is qualified in all respects by reference to the full text of such contract or other document filed as an exhibit to the offering statement. The offering statement, including its exhibits and schedules, may be inspected without charge at the public reference room maintained by the SEC, located at 100 F Street, N.E., Room 1580, Washington, D.C. 20549, and copies of all or any part of the offering statement may be obtained from such offices upon the payment of the fees prescribed by the SEC. Please call the SEC at 1-800-SEC-0330 for further


42


information about the public reference room. The SEC also maintains an Internet website that contains all information regarding companies that file electronically with the SEC. The address of the site is www.sec.gov.

 

INDEX TO FINANCIAL STATEMENTS

 

RAADR, INC.

 

Unaudited Financial Statements for the Years Ended December 31, 2023 and 2022

 

Balance Sheets at June 30, 2024 and December 31, 2023 (unaudited)

F-2

Statements of Operations For the Three and Six Months Ended June 30, 2024 and 2023 (unaudited)

F-3

Statements of Changes in Stockholders Equity (Deficit) For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-4

Statements of Cash Flows For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-5

Notes to Unaudited Financial Statements

F-6

 

Unaudited Financial Statements for the Years Ended December 31, 2023 and 2022

 

Balance Sheets at December 31, 2023 and 2022 (unaudited)

F-17

Statements of Operations For the Years Ended December 31, 2023 and 2022 (unaudited)

F-18

Statements of Changes in Stockholders Equity (Deficit) For the Years Ended December 31, 2023 and 2022 (unaudited)

F-19

Statements of Cash Flows For the Years Ended December 31, 2023 and 2022 (unaudited)

F-20

Notes to Unaudited Financial Statements

F-21

 

MEXEDIA, INC. AND SUBSIDIARIES

 

Unaudited Consolidated Financial Statements for the Six Months Ended June 30, 2024 and 2023

 

Consolidated Balance Sheets at June 30, 2024, and December 31, 2023 (unaudited)

F-31

Consolidated Statement of Operations For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-32

Consolidated Statement of Changes in Stockholders Equity For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-33

Consolidated Statement of Cash Flows For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-34

Notes to Consolidated Unaudited Financial Statements

F-35

 

Unaudited Consolidated Financial Statements for the Years Ended December 31, 2023 and 2022

 

Consolidated Balance Sheets at December 31, 2023 and 2022 (unaudited)

F-40

Consolidated Statement of Operations For the Years Ended December 31, 2023 and 2022 (unaudited)

F-41

Consolidated Statement of Changes in Stockholders Equity for the Years Ended December 31, 2023 and 2022 (unaudited)

F-42

Consolidated Statement of Cash Flows for the Years Ended December 31, 2023 and 2022 (unaudited)

F-43

Notes to Unaudited Consolidated Financial Statements

F-44

 

MEXEDIA, DAC

 

Unaudited Consolidated Financial Statements for the Six Months Ended June 30, 2024 and 2023

 

Balance Sheets at June 30, 2024, and December 31, 2023 (unaudited)

F-53

Statement of Operations For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-54

Statement of Changes in Stockholders Equity For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-55

Statement of Cash Flows For the Six Months Ended June 30, 2024 and 2023 (unaudited)

F-56

Notes to Unaudited Financial Statements

F-57

 

Unaudited Consolidated Financial Statements for the Years Ended December 31, 2023 and 2022

 

Balance Sheets at December 31, 2023 and 2022 (unaudited)

F-61

Statement of Operations For the Years Ended December 31, 2023 and 2022 (unaudited)

F-62

Statement of Changes in Stockholders Equity for the Years Ended December 31, 2023 and 2022 (unaudited)

F-63

Statement of Cash Flows for the Years Ended December 31, 2023 and 2022 (unaudited)

F-64

Notes to Unaudited Financial Statements

F-65

 


43


 

Picture 7 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-1


 

Picture 8 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-2


 

Picture 9 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-3


 

Picture 10 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-4


 

RAADR, INC. AND SUBSIDIARIES

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

For The Six Months Ended June 30, 2024 and 2023

(unaudited)

 

Note 1 - NATURE OF OPERATIONS

 

Overview

 

 

Basis of Presentation

 

The accompanying unaudited financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial statements (“U.S. GAAP”). Accordingly, they do not contain all information and footnotes required by accounting principles generally accepted in the United States of America for annual financial statements.

 

In the opinion of the Company’s management, the accompanying unaudited financial statements contain all of the adjustments necessary (consisting only of normal recurring accruals) to present the financial position of the Company as of June 30, 2024 and the results of operations and cash flows for the periods presented. The results of operations for the six months ended June 30, 2024 are not necessarily indicative of the operating results for the full fiscal year or any future period.

 

Management acknowledges its responsibility for the preparation of the accompanying unaudited financial statements which reflect all adjustments, consisting of normal recurring adjustments, considered necessary in its opinion for a fair statement of its financial position and the results of its operations for the periods presented.

 

 

Note 2 - GOING CONCERN AND MANAGEMENT’S LIQUIDITY PLANS

 

The accompanying financial statements have been prepared on a going concern basis, which contemplates the realization of assets and the satisfaction of liabilities in the normal course of business.

 

As shown in the accompanying financial statements, as of June 30, 2024, the Company had cash on hand of $2,966 and working capital deficit of $3,583,789.  During the six months ended June 30, 2024, the net income was $6,664,678 of which $5,460,066 was from the gain from write off of debt and a gain $1,683,018 was from the change in derivative liabilities and net cash used in operating activities was $180,648.

 

The Company has incurred significant losses since its inception and has not demonstrated an ability to generate sufficient revenues from the sales of its products or services to achieve profitable operations. There can be no assurance that profitable operations will ever be achieved, or if achieved, could be sustained on a continuing basis. In making this assessment we performed a comprehensive analysis of our current circumstances including: our financial position, our cash flows and cash usage forecasts for the twelve months ended December 31, 2024, and our current capital structure including equity-based instruments and our obligations and debts.

 

The Company expects to continue to incur significant losses from operations and have negative cash flows from operating activities for the near-term. These losses could be significant as the Company has not yet generated revenues, but has continuing operating expenses including, but not limited to, compensation costs, professional fees, software development costs and regulatory fees.

 

The Company’s primary source of operating funds has been from cash proceeds from the sale of common stock and the issuances of promissory notes and other debt. The Company has experienced net losses from operations since inception, but it expects these conditions to improve in the future as it develops its business model. The Company had an accumulated deficit of $30,340,935 at June 30, 2024 and requires additional financing to fund future operations.

 

Management’s current business plan is primarily to: (i) pursue additional capital raising opportunities, (ii) continue to explore and execute prospective partnering ; and (iii) identify unique market opportunities that represent potential positive short-term cash flow.


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The Company’s existence is dependent upon management’s ability to develop profitable operations and to obtain additional funding sources. There can be no assurance that the Company’s financing efforts will result in profitable operations or the resolution of the Company’s liquidity problems.

 

If the Company does not obtain additional capital, the Company will be required to reduce the scope of its business development activities or cease operations. The Company continues to explore obtaining additional capital financing and the Company is closely monitoring its cash balances, cash needs, and expense levels.

 

These factors create substantial doubt about the Company’s ability to continue as a going concern within the twelve-month period subsequent to the date that these financial statements are issued. The financial statements do not include any adjustments that might be necessary if the Company is unable to continue as a going concern.

 

Note 3 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

 

Business Segments and Concentrations

 

The Company uses the “management approach” to identify its reportable segments. The management approach requires companies to report segment financial information consistent with information used by management for making operating decisions and assessing performance as the basis for identifying the Company’s reportable segments. The Company manages its business as one reportable segment.

 

Organization

 

Raadr, Inc. (the “Company”) was organized March 29, 2006 (Date of Inception) under the laws of the State of Nevada, as White Dental Supply, Inc. On December 27, 2012, the Company formed two wholly owned subsidiaries, Choice One Mobile, Inc. and PITOOEY! Mobile, Inc., under the laws of the State of Nevada. On January 7, 2013, the Board of Directors of the Company authorized and a majority of the stockholders of the Company ratified, by written consent, resolutions to change the name of the Company to PITOOEY!, Inc. The name change was effective with the State of Nevada February 7, 2013. On February 6, 2013, the Company formed a wholly owned subsidiary, Rockstar Digital, Inc., under the laws of the State of Nevada. On October 31, 2013, the Company, as part of its settlement agreement with the employees of Rockstar Digital, ceased operations of its wholly owned subsidiary, Rockstar Digital, Inc. On July 29, 2015, the Company changed their name to Raadr, Inc. The name change was effective with the State of Nevada on July 29, 2015.

 

Business

 

The Company offers a unique software tool in www.raadr.com that allows individuals to monitor social media activity online. As the digital world of the 21st Century continues to evolve, parents, guardians, and children are faced with challenges and threats not just in the real world, but in the omnipresent realm of Social Media as well. PITOOEY! INC., makers of the proprietary technology application RAADR© have developed a web based tool that provides families with peace of mind when it comes to knowing that children are safe from bullying and predatory behavior unfortunately so prevalent today.

 

By customizing their own unique monitoring and alert settings, parents and guardians can be alerted when their children’s Facebook, Twitter, Instagram and other pertinent social media platforms under scrutiny become posted with inappropriate language. By utilizing customized keywords chosen by the user that are added to an already existing database, parents and guardians can carry a sense of assuredness that the youth they love and are responsible for are safe and acting in a fun, yet appropriate manner.

 

Use of Estimates and Assumptions

 

Preparing financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities at the date of the financial statements and revenues and expenses during the reported period. Actual results could differ from those estimates, and those estimates may be material.

 

Changes in estimates are recorded in the period in which they become known. The Company bases its estimates on historical experience and other assumptions, which include both quantitative and qualitative assessments that it believes to be reasonable under the circumstances.


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Significant estimates during the six months ended June 30, 2024 and 2023, respectively, include, allowance for doubtful accounts and other receivables, inventory reserves and classifications, valuation of loss contingencies, valuation of stock-based compensation, estimated useful lives related to property and equipment, impairment of intangible assets, implicit interest rate in right-of-use operating leases, uncertain tax positions, and the valuation allowance on deferred tax assets.

 

Risks and Uncertainties

 

The Company has a limited operating history and has not generated revenues from our planned principal operations.

 

The Company’s business and operations are sensitive to general business and economic conditions in the U.S. and worldwide. These conditions include short-term and long-term interest rates, inflation, fluctuations in debt and equity capital markets and the general condition of the U.S. and world economy. A host of factors beyond the Company’s control could cause fluctuations in these conditions, including the political environment and acts or threats of war or terrorism. Adverse developments in these general business and economic conditions, including through recession, downturn or otherwise, could have a material adverse effect on the Company’s consolidated financial condition and the results of its operations.

 

The Company currently has limited sales and marketing and/or distribution capabilities. The Company has limited experience in developing, training or managing a sales force and will incur substantial additional expenses if we decide to market any of our current and future products. Developing a marketing and sales force is also time consuming and could delay launch of our future products. In addition, the Company will compete with many companies that currently have extensive and well-funded marketing and sales operations. Our marketing and sales efforts may be unable to compete successfully against these companies . In addition, the Company has limited capital to devote sales and marketing.

 

The Company’s industry is characterized by rapid changes in technology and customer demands. As a result, the Company’s products may quickly become obsolete and unmarketable. The Company’s future success will depend on its ability to adapt to technological advances, anticipate customer demands, develop new products and enhance our current products on a timely and cost -effective basis. Further, the Company’s products must remain competitive with those of other companies with substantially greater resources. The Company may experience technical or other difficulties that could delay or prevent the development, introduction or marketing of new products or enhanced versions of existing products. Also, the Company may not be able to adapt new or enhanced products to emerging industry standards, and the Company’s new products may not be favorably received . We also may not have the capital resources to further the development of existing and/or new ones

 

Cash

 

For purposes of the statements of cash flows, the Company considers all highly liquid instruments with a maturity of six months or less at the purchase date and money market accounts to be cash equivalents.

 

At June 30, 2024 and December 31, 2023, respectively, the Company did not have any cash equivalents.

 

The Company is exposed to credit risk on its cash and cash equivalents in the event of default by the financial institutions to the extent account balances exceed the amount insured by the FDIC, which is $250,000.

 

At June 30, 2024 and December 31, 2023, respectively, the Company did not experience any losses on cash balances in excess of FDIC insured limits.

 

Fair Value of Financial Instruments

 

The Company accounts for financial instruments under Financial Accounting Standards Board (“FASB”) ASC 820, Fair Value Measurements. ASC 820 provides a framework for measuring fair value and requires disclosures regarding fair value measurements. Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date, based on the Company’s principal or, in absence of a principal, most advantageous market for the specific asset or liability.

 

The Company uses a three-tier fair value hierarchy to classify and disclose all assets and liabilities measured at fair value on a recurring basis, as well as assets and liabilities measured at fair value on a non-recurring basis, in periods


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subsequent to their initial measurement. The hierarchy requires the Company to use observable inputs when available, and to minimize the use of unobservable inputs, when determining fair value.

 

The three tiers are defined as follows:

 

·Level 1 - Observable inputs that reflect quoted market prices (unadjusted) for identical assets or liabilities in active markets; 

·Level 2 - Observable inputs other than quoted prices in active markets that are observable either directly or indirectly in the marketplace for identical or similar assets and liabilities; and 

·Level 3 - Unobservable inputs that are supported by little or no market data, which require the Company to develop its own assumptions. 

 

The determination of fair value and the assessment of a measurement’s placement within the hierarchy requires judgment. Level 3 valuations often involve a higher degree of judgment and complexity. Level 3 valuations may require the use of various cost, market, or income valuation methodologies applied to unobservable management estimates and assumptions. Management’s assumptions could vary depending on the asset or liability valued and the valuation method used. Such assumptions could include estimates of prices, earnings, costs, actions of market participants, market factors, or the weighting of various valuation methods. The Company may also engage external advisors to assist us in determining fair value, as appropriate. Although the Company believes that the recorded fair value of our financial instruments is appropriate, these fair values may not be indicative of net realizable value or reflective of future fair values. The Company’s financial instruments, including cash, accounts payable and accrued expenses, and convertible notes payable, are carried at historical cost. As of June 30, 2024 and December 31, 2023, respectively, the derivative liabilities are considered a level 2 item; see Note 4.

 

ASC 825-10 “Financial Instruments” allows entities to voluntarily choose to measure certain financial assets and liabilities at fair value (“fair value option”). The fair value option may be elected on an instrument-by-instrument basis and is irrevocable unless a new election date occurs. If the fair value option is elected for an instrument, unrealized gains and losses for that instrument should be reported in earnings at each subsequent reporting date. The Company did not elect to apply the fair value option to any outstanding financial instruments.

 

Leases

 

We determine if an arrangement is a lease at inception. Operating leases are included in operating lease right-of-use (“ROU”) assets, operating lease liabilities - current and operating lease liabilities - noncurrent on the balance sheets. The initial lease liability is equal to the future fixed minimum lease payments discounted using the Company’s incremental borrowing rate, on a secured basis. The initial measurement of the right-of-use asset is equal to the initial lease liability plus any initial direct costs.

 

ROU assets represent our right to use an underlying asset for the lease term and lease liabilities represent our obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of lease payments over the lease term.

 

Derivative Liabilities

 

The Company analyzes all financial instruments with features of both liabilities and equity under FASB ASC Topic No. 480, (“ASC 480”), “Distinguishing Liabilities from Equity” and FASB ASC Topic No. 815, (“ASC 815”) “Derivatives and Hedging”. Derivative liabilities are adjusted to reflect fair value at each reporting period, with any increase or decrease in the fair value recorded in the results of operations (other income/expense) as a gain or loss on the change in fair value of derivative liabilities. The Company uses a binomial pricing model to determine fair value of these instruments.

 

Upon conversion or repayment of a debt instrument in exchange for shares of common stock, where the embedded conversion option has been bifurcated and accounted for as a derivative liability (generally convertible debt and warrants), the Company records the shares of common stock at fair value, relieves all related debt, derivative liabilities, and any remaining unamortized debt discounts, and where appropriate recognizes a net gain or loss on debt extinguishment (debt based derivative liabilities). In connection with any extinguishments of equity based derivative liabilities (typically warrants), the Company records an increase to additional paid-in capital for any remaining liability balance extinguished.


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Equity instruments that are initially classified as equity that become subject to reclassification under ASC Topic 815 are reclassified to liabilities at the fair value of the instrument on the reclassification date.

 

At June 30, 2024 and December 31, 2023, respectively, the Company had $933,933 and $2,616,951, respectively of derivative liabilities.

 

Income Taxes

 

The Company accounts for income tax using the asset and liability method prescribed by ASC 740, “Income Taxes”. Under this method, deferred tax assets and liabilities are determined based on the difference between the financial reporting and tax bases of assets and liabilities using enacted tax rates that will be in effect in the year in which the differences are expected to reverse. The Company records a valuation allowance to offset deferred tax assets if based on the weight of available evidence, it is more-likely-than-not that some portion, or all, of the deferred tax assets will not be realized. The effect on deferred taxes of a change in tax rates is recognized as income or loss in the period that includes the enactment date.

 

The Company follows the accounting guidance for uncertainty in income taxes using the provisions of ASC 740 “Income Taxes”. Using that guidance, tax positions initially need to be recognized in the financial statements when it is more likely than not the position will be sustained upon examination by the tax authorities.

 

At June 30, 2024 and December 31, 2023, respectively, the Company had no uncertain tax positions that qualify for either recognition or disclosure in the financial statements.

 

The Company recognizes interest and penalties related to uncertain income tax positions in other expense. No interest and penalties related to uncertain income tax positions were recorded for the six months ended June 30, 2024 and 2023, respectively.

 

Advertising Costs

 

Advertising costs are expensed as incurred. Advertising costs are included as a component of general and administrative expense in the statements of operations.

 

The Company recognized $0 in marketing and advertising costs during the three and six months ended June 30, 2024 and 2023, respectively.

 

Stock-Based Compensation

 

The Company accounts for our stock-based compensation under ASC 718 “Compensation - Stock Compensation” using the fair value-based method. Under this method, compensation cost is measured at the grant date based on the value of the award and is recognized over the service period, which is usually the vesting period. This guidance establishes standards for the accounting for transactions in which an entity exchanges its equity instruments for goods or services. It also addresses transactions in which an entity incurs liabilities in exchange for goods or services that are based on the fair value of the entity’s equity instruments or that may be settled by the issuance of those equity instruments.

 

The Company uses the fair value method for equity instruments granted to non-employees and uses the Black-Scholes model for measuring the fair value of options.

 

The fair value of stock-based compensation is determined as of the date of the grant or the date at which the performance of the services is completed (measurement date) and is recognized over the vesting periods.

 

When determining fair value of stock options, the Company considers the following assumptions in the Black-Scholes model:

 

·Exercise price, 

·Expected dividends, 

·Expected volatility, 

·Risk-free interest rate; and 

·Expected life of option 


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Basic and Diluted Earnings (Loss) per Share

 

Basic earnings per share is calculated using the two-class method and is computed by dividing net earnings available to common shareholders by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued. Net earnings available to common shareholders represent net earnings to common shareholders reduced by the allocation of earnings to participating securities. Losses are not allocated to participating securities. Common shares outstanding and certain other shares committed to be, but not yet issued, include restricted stock and restricted stock units (“RSUs”) for which no future service is required.

 

Diluted earnings per share is calculated under both the two-class and treasury stock methods, and the more dilutive amount is reported. Diluted earnings per share is computed by taking the sum of net earnings available to common shareholders, dividends on preferred shares and dividends on dilutive mandatorily redeemable convertible preferred shares, divided by the weighted average number of common shares outstanding and certain other shares committed to be, but not yet issued, plus all dilutive common stock equivalents outstanding during the period (stock options, warrants, convertible preferred stock, and convertible debt).

 

Preferred shares and unvested share-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents (whether paid or unpaid) are participating securities and, therefore, are included in the earnings allocation in computing earnings per share under the two-class method of earnings per share.

 

Unvested shares of common stock are excluded from the denominator in computing net loss per share.

 

Restricted stock and RSUs granted as part of share-based compensation contain nonforfeitable rights to dividends and dividend equivalents, respectively, and therefore, prior to the requisite service being rendered for the right to retain the award, restricted stock and RSUs meet the definition of a participating security. RSUs granted under an executive compensation plan are not considered participating securities as the rights to dividend equivalents are forfeitable.

 

Related Parties

 

Parties are considered to be related to the Company if the parties, directly or indirectly, through one or more intermediaries, control, are controlled by, or are under common control with the Company. Related parties also include principal owners of the Company, its management, members of the immediate families of principal owners of the Company and its management and other parties with which the Company may deal with if one party controls or can significantly influence the management or operating policies of the other to an extent that one of the transacting parties might be prevented from fully pursuing its own          separate interests.

 

On June 3, 2021 the Company entered into an executive employment agreement with and individual to be t President, Secretary, Treasurer, Interim Chief Financial Officer and Chief Executive Officer of the Company. The term of the agreement is for three years with compensation at $180,000 per year.

 

Recent Pronouncements

 

Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s consolidated financial statement presentation or disclosures.

 

Note 4 - Financial Statement Elements

 

Accrued liabilities as of June 30, 2024 and December 31, 2023, respectively, consisted of:

Picture 5 


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As of June 30, 2024, the Company has determined that the accrued payroll and taxes, and other accrued expenses exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt. The executive compensation was also written off and included in the gain from write off of debt. See Note 8.

 

Note 5 - Notes Payable

 

Notes payable as of June 30, 2024 and December 31, 2023, respectively, consisted of:

 

Picture 6 

Convertible Promissory Notes

 

Commencing in December 2015 and through June 2018, the Company issued various convertible promissory notes to third parties in the amount of $276,838 to be used for operations. In addition, these convertible promissory notes include various default provisions in which increase the interest rate to rates ranging from 12% to 35% and at times the principal balance at rates ranging from 5% to 50%. Additionally, most convertible promissory notes have prepayment penalties in which range from 15% to 50%.

 

In April, 2020, a total of $90,000 in convertible notes were received. The notes bear an interest rate of 10% and mature on April 1, 2021. The notes are convertible into common stock based upon a 50% discount to the lowest traded price within the 20 trading days preceding the conversion. The note contains various prepayment and default provisions, similar to those disclosed above.

 

On July 23, 2020, the Company entered into a convertible note payable with a third party for proceeds of $25,000. The  convertible note incurs interest at 20% per annum, is due 180 days from the date of issuance and is convertible upon issuance into shares of the Company’s common stock at a 50% discount to the average closing bid price during the preceding 10 trading  days. The note contains various prepayment and default provisions, similar to those disclosed above.

 

During the year ended December 31, 2021, the Company entered into convertible notes payable totaling $329,536. The terms of the notes range from six months to one year, interest ranging from 8-20% and conversion prices with discounts of up to 50% of the lowest bid prices in the ten days prior to conversion.

 

At various times during the year ended December 31, 2022, the Company entered into convertible notes payable totaling $150,900 receiving proceeds of $126,150. The terms of the notes range from six months to one year, interest ranging from 8% - $20% and conversion prices ranging from $0.00005 - $0.000025.

 

During the year ended December, 2023, the Company entered into convertible notes payable totaling $927,646


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receiving proceeds of $927,646. The terms of the notes range from six months to one year, interest ranging from 8% - 20% and conversion prices with discounts of up to 65% of the average lowest bid prices in the ten days prior to conversion.

 

During the six months ended June 30, 2024, the Company entered into two convertible notes payable totaling $21,250, receiving proceeds of $21,250. The terms of the notes are for six months, interest at 20% and conversion prices with discounts of up to 65% of the average lowest bid prices in the ten days prior to conversion.

 

In most cases, these convertible promissory notes are convertible upon issuance into a variable number of shares of common stock. Based on the requirements of ASC 815, we determined that a derivative liability was triggered upon issuance due to the variable conversion price. Using the Black-Scholes pricing model, we calculated the derivative liability upon issuance and recorded the fair market value of the derivative liability as a discount to the convertible promissory notes. When a derivative liability associated with a convertible note is in excess of the face value of the convertible note, the excess of fair value of derivative is charged to the statement of operations. The derivative liability is required to be revalued at each conversion event and at each reporting period. The Company doesn’t account for the derivative liability until the convertible promissory note is convertible.

 

Derivative Liabilities

 

During the periods ended June 30, 2024 and December 31, 2023, respectively, the range of inputs used to calculate the derivative liability were as follows:

 

Picture 4 

 

Debentures with Warrants

 

At various dates in 2014 and 2013, the Company issued debentures with warrants totaling $327,664. These debentures contain interest rates ranging from 8% to 20% and matured at various times from July 2014 through July 2015. As of June 30, 2024 and December 31, 2023, respectively, these notes were in technical default. The warrants issued with these debentures contain an exercise price of $2,500 per share and expired three years from the date of issuance. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Notes Issued Under an Investment Agreement

 

On April 29, 2013, the Company entered into an Investment Agreement, in which an investor agreed to purchase debentures up to a total principal amount of $1,100,000. This commitment was increased to $2,000,000 based on an agreement modification entered into on December 2, 2013. Each debenture will accrue interest on the unpaid principal of each individual debenture at the rate of 8% per year from the date each debenture is issued until paid. Maturity dates of the debentures issued range from April 2014 through May 2015. In March 2021, the holder transferred $472,431 in principal and $299,456 in accrued interest to a third party for which the Company entered into a new convertible note, see above. As of December 31, 2023, respectively, the principal balance owed on these debentures was $69,333, plus accrued interest. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Promissory Notes

 

On July 25, 2012, the Company entered into an Intellectual Property Assignment Agreement. In accordance with the terms and conditions contained therein, the Company has agreed to pay the Seller $8,000 in two installments: The first payment of $4,000 was due July 25, 2013, and second payment of $4,000 was due July 25, 2014. The note is currently in default due to non-payment. During the year ended December 31, 2013, the Company issued a $50,000 promissory


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note bearing interest at 10% and due on May 31, 2014. The note is payable in monthly payments of principal and interest. As of December 31, 2023 the remaining principal balance of $10,606, is past due and in default. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

In June 2015, the Company received $20,000 in proceeds from convertible notes payable. The notes are convertible, only at the Company’s option, for a minimum of $40,000 in common stock based upon the closing stock price on the date of conversion for a period of one year. In addition, the notes incur interest at 12% per annum and is due June 1, 2016. Since the note is only convertible at the Company’s option, the accounting for such will be triggered if the option is exercised.

 

On July 13, 2020, the Company entered into a $150,000 loan with the Small Business Administration. The note incurs interest at 3.75% per annum with principal and interest due over the period of thirty years. The note is secured by substantially all of the Company’s asset and requires the funds to be used for operational purposes. As of December 31, 2023, the remaining principal balance was $147,500. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

During the year ended December 31, 2022, the Company issued $209,145 in short-term promissory notes to various parties with interest rates ranging from 20%-50%. The Company also issued approximately $40,000 in short-term promissory notes to various third parties for expenses paid by the third parties on behalf of the Company. These mature on demand or on various dates from April 2022 through September 2022. During the year ended December 31, 2022, the Company repaid approximately $37,558 of these promissory notes. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

During the year ended December 31, 2022, the Company also entered into two 18-month business loan agreements totaling $160,000. The loans require fixed weekly payments of principal and interest totaling $2,897 through November 2023 and have effective interest rates ranging from 34% to 63%. These loans are also secured by substantially all assets of the Company and have various default provisions as defined within the agreement, whereby the debt can be called immediately. As certain of these default provisions have been triggered, the full amount of the remaining principal balance of the loans of $145,942 as of December 31, 2023 has been presented as current although default has not been called by the lender. Net proceeds of $158,175 were received from these loans. An additional $8,000 was paid to a third party for brokering the deal. The on-issuance discount and additional fees paid were recorded as a discount to the loans and are being amortized over the life of the loan. During the year ended December 31, 2022, all of the discount was amortized to interest. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Debentures with Warrants Issued to Related Parties

 

At various times in 2014 and 2013, the Company issued debentures with warrants to several related parties for $87,445. These debentures bear interest at 8% and mature at various times from July 2014 through February 2015. As of December 31, 2023, all the notes are in default as they are past the maturity dates. The warrants issued with these debentures contain an exercise price of $2,500 per share and expired three years from the date of issuance.  As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Demand Notes Issued to Related Parties

 

The Company has various notes outstanding to related parties totaling $30,659 as of December 31, 2023. These notes are due on demand and have no stated interest rate. The Company records imputed interest in connection with these related party notes. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Advances

 

As of December 31, 2023, the Company previously received advances from a third parties totaling $105,700. These advances bear interest at 20% per annum and are due 90 days after the funds are received. As of the date of this filing, these advances are considered in default as they are past their maturity date. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed


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and it is included in the gain from write off of debt.

 

 

Line of Credit

 

During the year ended December 31, 2022, the Company took out a business line of credit with a financial institution that provides a credit line of up to $35,000. Advances under this line incur interest as an annual rate of 12.25% plus various other periodic finance charges. As of December 31, 2023, $38,998 was outstanding on the line of credit, respectively. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Note 6 - Commitments and Contingencies

 

Legal

 

On February 6, 2013, we formed a wholly owned subsidiary, Rockstar Digital, Inc. (“Rockstar”), under the laws of the State of Nevada. Rockstar was organized to specialize in internet branding through social media marketing, mobile marketing and iPhone ® app development Company. On October 31, 2013, the Company entered into a settlement agreement with certain former employees to assume responsibility for certain payroll taxes of Rockstar Digital, Inc. (“Rockstar”) and assign its ownership of Mobile Application and Transition Services intellectual property rights to Rockstar. In addition, the Company agreed to not assert a claim against certain computer equipment (cost of $28,307) in use at Rockstar. The Company agreed to assume liability for any payroll taxes owed on payroll paid by the Company on behalf of Rockstar’s employees. The Company estimated this liability at $30,000 which they have recorded in accrued liabilities as of June 30, 2024 and December 31, 2023, respectively.

 

On July 29, 2014, a default judgment was issued against the Company in Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida. This judgment stems from a legal filing by a consulting firm, with which the Company entered into an agreement for consulting services, on February 20, 2013. On September 25, 2013, the Company cancelled the agreement because it determined that services had not been provided by consulting firm, as promised per the agreed-upon contract terms. In November 2014, we entered into a settlement agreement whereby the Company shall pay the plaintiff $13,246, in monthly installments of $1,472. In addition, the Company issued options to purchase 20 shares of the Company’s common stock at an exercise price of $8,750 expiring in two years. The Company valued the options on the date of issuance at $21,424 using the Black-Sholes model. The required payments on the settlement have not been made, however, the full amount of the liability has been recorded within accrued liabilities as of December 31, 2023 and 2022, respectively.

 

On April 5, 2017, the Circuit Courts within the Twelfth Judicial Circuit of Florida entered an order approving the stipulation of the parties (the “Stipulation”) in the matter of Northbridge Financial, Inc. (“NBF”) v. Raadr Inc. Under the Stipulation, the Company agreed to issue, as settlement of liabilities owed by the Company to NBF in the aggregate amount of $272,250 (the “Claim Amount”) and the following:

 

(a) In one or more tranches as necessary, 7,000 shares of common stock (the “Initial Issuance”) and $27,500 in fees.

 

(b) Through the Initial Issuance and any required additional issuances, that number of shares of common stock with an aggregate value equal to the Purchase Price (defined under the Stipulation as the market price (defined as the lowest closing bid price of the Company’s common stock during the valuation period set forth in the Stipulation) less the product of the Discount (equal to 50%) and the market price.

 

(c) If at any time during the valuation period the closing bid price of the Company’s common stock is below 90% of the  closing bid price on the day before an issuance date, the Company will immediately cause to be issued to BF such  additional shares as may be required to affect the purposes of the Stipulation.

 

(d) Notwithstanding anything to the contrary in the Stipulation, the number of shares beneficially owned by NBF will not exceed 4.99% of the Company’s outstanding common stock.

 

In connection with the Settlement Shares, the Company relied on the exemption from registration provided by Section 3(a)(10)  under the Securities Act.

 

The Company cannot reasonably estimate the amount of proceeds NBF expects to receive from the sale of these shares which be used to satisfy the liabilities. Thus, the Company accounts for the transaction as the shares are sold and the liabilities are settled. All amounts are included within accounts payable. Shares in which are held by NBF at each


F-14


reporting period are accounted for as issued but not outstanding. During the year ended December 31, 2017, the Company issued 6,263 shares of common stock in settlement of $219,250 in accounts payable. The Company valued the common stock issued at $847,250 based upon the closing market price of the common stock on the settlement date. The difference between the fair market value of the common stock and accounts payable relieved of $628,000 was recorded as additional interest expense. As of December 31, 2023 amounts payable to NBF included within accounts payable were $53,000. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Note 7 - Stockholders’ Deficit

 

Authorized Shares

 

As of June 30, 2024, the Company is authorized to issue 15,000,000,000 shares of $0.001 par value common stock and 101,000,000 shares of $0.001 par value preferred stock (of which 20,000,000 have been designated as Series A Preferred Stock, 1,000,000 have been designated as Series E Preferred Stock, and 8,000,000 shares of preferred stock available for the Company to assign or designate such provisions or preferences as may be assigned by the Board of Directors). Effective December 20, 2022, the Company had enacted a 100 to 1 reverse stock split. All share and per share amount have been revised to reflect the reverse stock split.

 

Series A Preferred Stock

 

On January 3, 2013, the Company filed a Certificate of Designation with the State of Nevada to designate up to 20,000,000 shares of preferred stock as “Series A”. The Series A holds no voting rights but is automatically convertible into shares of the Company’s common stock immediately upon the effectiveness of a Certificate of Change filed by the Company to increase the number of shares of common stock the Company would become authorized to issue.

 

Series B Preferred Stock

 

As of the date of these consolidated financial statements the designations for the Series B have not been filed with the State, and thus, the proceeds received for sale of these shares to date are reflected as a liability on the accompanying balance sheets at December 31, 2023. The rights and preferences are not valid until the designations are filed. Once approved, the holders are expected to receive warrants to purchase one share of common stock at $50.00 per share. In addition, each share of Series B converted the holder would receive two shares of common stock. As of June 30, 2024, the Company has determined that the debt exceeds the statute of limitations for collection and as such as written off the amount owed and it is included in the gain from write off of debt.

 

Series E Preferred Stock

 

On January 27, 2016, the Company filed a Certificate of Designation with the State of Nevada to designate up to 1,000,000 shares of preferred stock as “Series E”. The Series E hold voting rights equal to twice the number of votes of all outstanding shares of capital stock such that the holders of outstanding shares of Series E shall always constitute 66.67% of the voting rights of the Corporation. All shares of Series E rank subordinate to all of the Company’s common and preferred stock and are not entitled to participate in the distribution of the Company’s assets upon liquidation.

 

Common Stock

 

During the year ended December 31, 2023, the Company sold 89,500,000 shares of common stock for total proceeds of $93,750. The Company also issued 127,820,746 shares of common stock for consulting services. In connection with these issuances, the Company recorded stock-based compensation expense of $301,524 during the year ended December 31, 2023 based on the closing market price of the Company’s stock on the date of grant.

 

During the year ended December 31, 2023, 209,370,320 shares were issued for full-ratchet anti-dilution protection rights to shareholders resulting in a loss of $270,541.

 

During the year ended December 31, 2023, 137,174,000 shares were issued for conversion of notes payable that totaled $50,454 of principal and interest

 

During the year ended December 31, 2023, 1,700,000,000 shares were issued in a forbearance agreement to three shareholders resulting in a loss of $2,720,000.


F-15


 

During the year ended December 31, 2022, the Company sold 30,412,500 shares of common stock for total proceeds of $318,500. The Company also issued 5,791,577 shares of common stock for consulting services. In connection with these issuances, the Company recorded stock-based compensation expense of $282,600 based on the closing market price of the Company’s stock on the date of grant. 2,000,000 of these shares were issued with full-ratchet anti-dilution protection rights.

 

During the three months ended March 31, 2024, the Company sold 450,000,000 shares of common stock for total proceeds of $45,000.

 

During the three months ended June 30, 2024, the Company sold 1,040,000,000 shares of common stock for total proceeds of $104,000.

 

During the three months ended June 30, 2024, the Company issued 427,000,000 shares of common stock for the conversion of convertible notes payable and accrued interest in the amount of $51,480.

 

During the three months ended June 30, 2024, the Company also issued 100,000,000 shares of common stock for consulting services. In connection with these issuances, the Company recorded stock-based compensation expense of $20,000 based on the closing market price of the Company’s stock on the date of grant.

 

During the three months ended June 30, 2024, 94,750,468 shares were issued for full-ratchet anti-dilution protection rights to a shareholder resulting in a loss of $18,950 based on the closing market price of the Company’s stock on the date of grant.

 

Note 8 - Related Party Transactions

 

As of and December 31, 2023, amounts included within accrued liabilities related to payroll due to Jacob DiMartino, our Chief Executive Officer, were $617,921. The Company accrues $15,000 per month in connection with the CEO’s services.

Executive compensation for the six months ended June 30, 2024 was $90,000. The Company has determined that the amount owing to the CEO should be written off and was included in the gain on write off of debt.

 

Note 9 - Subsequent Events

 

The Company has evaluated events subsequent to June 30, 2024 and through the date these financial statements have been prepared and has determined no events, other than those disclosed above, have occurred that would materially affect these consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


F-16


 

RAADR, Inc.

Consolidated Balance Sheets

(Unaudited)

 

 

As of December 31,

 

2023

 

2022

Assets:

 

 

 

Current assets

 

 

 

Cash

$

13,364

 

$

871

Total current assets

 

13,364

 

 

871

 

 

 

 

 

 

Property and equipment, net

 

-

 

 

1,828

Total assets

$

13,364

 

$

2,699

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Stockholders’ Deficit:

 

 

 

 

 

Current liabilities

 

 

 

 

 

Accounts payable

$

525,269

 

$

508,751

Accrued expenses

 

3,164,552

 

 

2,833,536

Advances

 

105,700

 

 

105,700

Preferred Stock to be issued

 

259,900

 

 

259,900

Common stock to be issued

 

1,066,138

 

 

1,066,138

Line of credit

 

38,998

 

 

41,934

Convertible notes payable

 

1,701,018

 

 

1,611,386

Notes payable

 

757,863

 

 

730,096

Note payable - related party

 

118,104

 

 

118,104

Derivative liabilities

 

2,616,951

 

 

6,445,544

Total current liabilities

 

10,354,493

 

 

13,721,089

 

 

 

 

 

 

Long term liabilities

 

 

 

 

 

Notes payable

 

146,769

 

 

147,500

Total liabilities

 

10,501,262

 

 

13,868,589

 

 

 

 

 

 

Stockholders’ Deficit

 

 

 

 

 

 

 

 

 

 

 

Series A Preferred stock, par value $0.001, 20,000,000 shares authorized

 0 shares issued and outstanding as of December 31, 2023 and 2022,

 respectively

 

1

 

 

1

Series E Preferred stock, par value $0.001, 1,000,000 shares authorized

 1,000,000 shares issued and outstanding as of December 31, 2023 and

 2022, respectively

 

1,000

 

 

1,000

Common stock, par value $0.001, 39,000,000,000 shares authorized,

 2,346,499,236 and 82,634,170 shares issued and outstanding as of

 December 31, 2023 and 2022, respectively

 

2,346,501

 

 

82,635

Additional paid-in capital

 

24,170,213

 

 

23,005,273

Accumulated deficit

 

(37,005,613)

 

 

(36,954,799)

Total stockholders’ deficit

 

(10,487,898)

 

 

(13,865,890)

Total liabilities and stockholders’ deficit

$

13,364

 

$

2,699

 

 

The accompanying notes are an integral part of these consolidated financial statements.


F-17


 

RAADR, Inc.

Consolidated Statements of Operations

(Unaudited)

 

 

 

For the Year Ended

 

 

December 31,

 

 

2023

 

2022

 

 

 

 

 

Revenues

 

$

-

 

$

-

 

 

 

 

 

 

 

Operating Expenses:

 

 

 

 

 

 

Advertising and marketing

 

 

595

 

 

42,729

Executive compensation

 

 

180,000

 

 

180,000

General and administrative

 

 

359,412

 

 

875,309

Total Operating Expenses

 

 

539,412

 

 

1,098,038

 

 

 

 

 

 

 

Loss From Operations

 

 

(539,412)

 

 

(1,098,038)

 

 

 

 

 

 

 

Other (Income) Expense

 

 

 

 

 

 

Loss on forbearance agreement

 

 

2,720,000

 

 

 

Loss on anti-dilution clause

 

 

270,542

 

 

 

Change in fair value of derivative liability

 

 

(3,828,593)

 

 

2,378,733

Interest expense

 

 

349,452

 

 

573,368

Total Other (Income) Expense, net

 

 

(488,599)

 

 

2,952,101

 

 

 

 

 

 

 

Net Loss

 

$

(50,813)

 

$

(4,050,139)

 

 

 

 

 

 

 

Net loss per share

 

 

 

 

 

 

Basic and diluted

 

$

(0.00)

 

$

(0.00)

 

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

 

 

 

 

Basic and diluted

 

 

827,335,589

 

 

57,692,053

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


F-18


RAADR, Inc.

Consolidated Statements of Stockholders’ Equity (Deficit)

(Unaudited)

 

 

Preferred Stock Series A

 

Preferred Stock Series E

 

Common Stock

 

 

 

 

 

 

 

Shares

 

Amount

 

Shares

 

Amount

 

Shares

 

Amount

 

Additional

Paid in

Capital

 

Accumulated

Deficit

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance, December 31, 2021

-

 

$

1

 

1,000,000

 

$

1,000

 

40,880,093

 

$

40,880

 

$

22,300,429

 

$

(32,904,660)

 

$

(10,562,351)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of common stock for cash

 

 

 

 

 

 

 

 

 

 

30,412,500

 

 

30,413

 

 

288,087

 

 

-

 

 

318,500

Issuance of common stock for services

 

 

 

 

 

 

 

 

 

 

5,791,577

 

 

5,793

 

 

276,807

 

 

-

 

 

282,600

Issuance of common stock for conversion of notes payable

 

 

 

 

 

 

 

 

 

 

5,550,000

 

 

5,550

 

 

139,950

 

 

-

 

 

145,500

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(4,050,139)

 

 

(4,050,139)

Balance, December 31, 2022

-

 

$

1

 

1,000,000

 

$

1,000

 

82,634,170

 

$

82,636

 

$

23,005,273

 

 

(36,954,799)

 

$

(13,865,890)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock for conversion of convertible notes

 

 

 

 

 

 

 

 

 

 

137,174,000

 

 

137,174

 

 

(94,184)

 

 

 

 

 

50,454

Issuance of common stock for compensation

 

 

 

 

 

 

 

 

 

 

127,820,746

 

 

127,821

 

 

173,703

 

 

 

 

 

301,524

Issuance of common stock for cash

 

 

 

-

 

 

 

 

-

 

89,500,000

 

 

89,500

 

 

4,250

 

 

-

 

 

93,750

Issuance of stock for anti-dilution clause

 

 

 

-

 

 

 

 

-

 

209,370,320

 

 

209,370

 

 

61,171

 

 

-

 

 

270,541

Issuance of common stock for forbearance upon defaulted notes

 

 

 

 

 

 

 

 

 

 

1,700,000,000

 

 

1,700,000

 

 

1,020,000

 

 

 

 

 

2,720,000

Net loss

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(50,813)

 

 

(50,813)

Balance, December 31, 2023

-

 

$

1

 

1,000,000

 

$

1,000

 

2,346,499,236

 

$

2,346,501

 

$

24,170,213

 

$

(37,005,612)

 

$

(10,487,898)

 

 

The accompanying notes are an integral part of these consolidated financial statements.


F-19


RAADR, Inc.

Consolidated Statements of Cash Flows

(Unaudited)

 

 

For The Year Ended

 

December 31,

 

2023

 

2022

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES:

$

(50,813)

 

$

(4,050,139)

Net loss

 

 

 

 

 

Adjustments to reconcile net loss to net cash used in operating activities:

 

 

 

 

 

Depreciation

 

1,828

 

 

 

Change in fair value of derivative liability

 

(3,828,593)

 

 

2,378,733

Stock based compensation

 

301,524

 

 

282,600

Loss on forbearance agreement

 

2,720,000

 

 

 

Loss on anti-dilution clause

 

270,541

 

 

 

Amortization of debt discount

 

 

 

 

229,523

Additional interest expense on conversion of notes payable

 

 

 

 

39,631

Effect of changes in:

 

 

 

 

 

Accounts payable

 

16,518

 

 

32,278

Accrued expenses

 

331,016

 

 

381,859

Net Cash Used in Operating Activities

 

(237,979)

 

 

(705,515)

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES:

 

 

 

 

 

Purchase of property and equipment

 

-

 

 

(1,828)

Net Cash Used in Financing Activities

 

-

 

 

(1,828)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES:

 

 

 

 

 

Proceeds from issuance of convertible notes payable

 

126,150

 

 

150,900

Repayments of advances

 

-

 

 

(8,000)

Proceeds from line of credit

 

-

 

 

42,590

Payments on line of credit

 

(2,936)

 

 

(1,532)

Offering costs paid for notes payable

 

-

 

 

(8,000)

Payments of notes payable

 

-

 

 

(37,558)

Proceeds from notes payable

 

33,508

 

 

249,145

Proceeds from sale of common stock

 

93,750

 

 

318,500

Net Cash Provided by Financing Activities

 

250,472

 

 

706,045

 

 

 

 

 

 

Net Increase (Decrease) in Cash

 

12,493

 

 

(1,298)

Cash at Beginning of Year

 

871

 

 

2,169

Cash at End of Period

$

13,364

 

$

871

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:

 

 

 

 

 

Cash paid during the year for:

 

 

 

 

 

Interest

 

-

 

$

6,045

Income taxes paid

 

-

 

 

-

 

 

 

 

 

 

Non-cash investing and financing activities

 

 

 

 

 

Conversions of notes payable

$

50,454

 

 

 

 

 

The accompanying notes are an integral part of these consolidated financial statements.


F-20


 

RAADR, Inc.

Notes to Consolidated Financial Statements

For the Years Ended December 31, 2023 and 2022

(Unaudited)

 

Note 1 - History and Organization

 

Organization

 

Raadr, Inc. (the “Company”) was organized March 29, 2006 (Date of Inception) under the laws of the State of Nevada, as White Dental Supply, Inc. On December 27, 2012, the Company formed two wholly owned subsidiaries, Choice One Mobile, Inc. and PITOOEY! Mobile, Inc., under the laws of the State of Nevada. On January 7, 2013, the Board of Directors of the Company authorized and a majority of the stockholders of the Company ratified, by written consent, resolutions to change the name of the Company to PITOOEY!, Inc. The name change was effective with the State of Nevada February 7, 2013. On February 6, 2013, the Company formed a wholly owned subsidiary, Rockstar Digital, Inc., under the laws of the State of Nevada. On October 31, 2013, the Company, as part of its settlement agreement with the employees of Rockstar Digital, ceased operations of its wholly owned subsidiary, Rockstar Digital, Inc. On July 29, 2015, the Company changed their name to Raadr, Inc. The name change was effective with the State of Nevada on July 29, 2015.

 

Business

 

The Company offers a unique software tool in www.raadr.com that allows individuals to monitor social media activity online. As the digital world of the 21st Century continues to evolve, parents, guardians, and children are faced with challenges and threats not just in the real world, but in the omnipresent realm of Social Media as well. PITOOEY! INC., makers of the proprietary technology application RAADR© have developed a web based tool that provides families with peace of mind when it comes to knowing that children are safe from bullying and predatory behavior unfortunately so prevalent today.

 

By customizing their own unique monitoring and alert settings, parents and guardians can be alerted when their children’s Facebook, Twitter, Instagram and other pertinent social media platforms under scrutiny become posted with inappropriate language. By utilizing customized keywords chosen by the user that are added to an already existing database, parents and guardians can carry a sense of assuredness that the youth they love and are responsible for are safe and acting in a fun, yet appropriate manner.

 

Going Concern

 

The accompanying consolidated financial statements have been prepared assuming the Company will continue as a going concern. As shown in the accompanying consolidated financial statements, the Company has limited assets and a working capital deficit of approximately $10.3 million.

 

In order to continue as a going concern, the Company will need, among other things, additional capital resources. The Company is significantly dependent upon its ability, and will continue to attempt, to secure equity and/or additional debt financing. The Company is attempting to conduct private placements of its preferred and common stock to raise proceeds to finance its plan of operation. There are no assurances that the Company will be successful, and without sufficient financing, it would be unlikely for the Company to continue as a going concern.

 

The consolidated financial statements do not include any adjustments relating to the recoverability and classification of recorded assets, or the amounts of and classification of liabilities that might be necessary in the event the Company cannot continue in existence. These conditions raise substantial doubt about the Company’s ability to continue as a going concern. These consolidated financial statements do not include any adjustments that might arise from this uncertainty.

 

Unaudited and Unreviewed Financial Statements

 

The accompanying consolidated financial statements have been prepared by the Company’s management pursuant to the rules and regulations of the United States Securities and Exchange Commission. These consolidated financial statements have not been audited or reviewed by an independent third party.

 

 

 


F-21


 

Note 2 - Summary of Significant Accounting Policies

 

Basis of Presentation

 

The Company’s unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States (“U.S. GAAP”).

 

Principles of Consolidation

 

The consolidated financial statements include the accounts of Raadr, Inc., Choice One Mobile, Inc., PITOOEY! Mobile, Inc.  and Rockstar Digital, Inc. All significant intercompany balances and transactions have been eliminated. Raadr, Inc., Choice One Mobile, Inc., PITOOEY! Mobile, Inc. and Rockstar Digital, Inc. will be collectively referred herein to as the “Company”.

 

Risks and Uncertainties

 

The Company has a limited operating history and has not generated revenues from our planned principal operations.

 

The Company’s business and operations are sensitive to general business and economic conditions in the U.S. and worldwide. These conditions include short-term and long-term interest rates, inflation, fluctuations in debt and equity capital markets and the general condition of the U.S. and world economy. A host of factors beyond the Company’s control could cause fluctuations in these conditions, including the political environment and acts or threats of war or terrorism. Adverse developments in these general business and economic conditions, including through recession, downturn or otherwise, could have a material adverse effect on the Company’s consolidated financial condition and the results of its operations.

 

The Company currently has limited sales and marketing and/or distribution capabilities. The Company has limited experience in developing, training or managing a sales force and will incur substantial additional expenses if we decide to market any of our current and future products. Developing a marketing and sales force is also time consuming and could delay launch of our future products. In addition, the Company will compete with many companies that currently have extensive and well-funded marketing and sales operations. Our marketing and sales efforts may be unable to compete successfully against these companies . In addition, the Company has limited capital to devote sales and marketing.

 

The Company’s industry is characterized by rapid changes in technology and customer demands. As a result, the Company’s products may quickly become obsolete and unmarketable. The Company’s future success will depend on its ability to adapt to technological advances, anticipate customer demands, develop new products and enhance our current products on a timely and cost -effective basis. Further, the Company’s products must remain competitive with those of other companies with substantially greater resources. The Company may experience technical or other difficulties that could delay or prevent the development, introduction or marketing of new products or enhanced versions of existing products. Also, the Company may not be able to adapt new or enhanced products to emerging industry standards, and the Company’s new products may not be favorably received . We also may not have the capital resources to further the development of existing and/or new ones.

 

Use of Estimates

 

The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period.  Actual results could differ significantly from those estimates.

 

Loss Per Common Share

 

Net loss per share is provided in accordance with ASC Subtopic 260-10. The Company presents basic loss per share (“EPS”) and diluted EPS on the face of the statements of operations. Basic EPS is computed by dividing reported losses by the weighted average shares outstanding. Except where the result would be anti-dilutive to income from continuing operations, diluted earnings per share has been computed assuming the conversion of the convertible long-term debt and the elimination of the related interest expense, and the exercise of stock warrants. Loss per common share has been computed using the weighted average number of common shares outstanding during the year.


F-22


 

Fair Value of Financial Instruments

 

Fair value is defined as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants as of the measurement date. Applicable accounting guidance provides an established hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are inputs that market participants would use in valuing the asset or liability and are developed based on market data obtained from sources independent of the Company. Unobservable inputs are inputs that reflect the Company’s assumptions about the factors that market participants would use in valuing the asset or liability.

 

The three levels of the fair value hierarchy are described below:

 

Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities;

 

Level 2: Quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability;

 

Level 3: Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (supported by little or no market activity).

 

As of December 31, 2023 and 2022, respectively, the derivative liabilities are considered a level 2 item; see Note 4.

 

The carrying amounts reflected in the balance sheets for cash, accounts payable and accrued expenses approximate the respective fair values due to the short maturities of these items.

 

Recent Pronouncements

 

Management does not believe that any other recently issued, but not yet effective, authoritative guidance, if currently adopted, would have a material impact on the Company’s consolidated financial statement presentation or disclosures.

 

Note 3 - Financial Statement Elements

 

Accrued liabilities as of December 31, 2023 and December 31, 2022 consisted of:

 

 

 

December 31,

2023

 

December 31,

2022

 

 

 

 

 

Accrued payroll and taxes

 

$

188,030

 

$

188,117

Executive compensation

 

 

617,921

 

 

636,270

Accrued interest

 

 

1,761,963

 

 

1,412,511

Other

 

 

596,638

 

 

596,638

 

 

$

3,164,552

 

$

2,833,536

 

In August 2015, the Company entered into a settlement agreement with their former Chief Executive Officer. In connection with the agreement, the Company has the obligation to issue 1 share of common stock in settlement of amounts payable to the former Chief Executive Officer for accrued salaries and an investment in Series B preferred stock. The Company has yet to issue the required shares, and thus, as of December 31, 2023 and 2022, respectively, the liabilities remain.

 

See Note 7 for discussion of accrued wages due to the Company’s Chief Executive Officer.

 

 

 


F-23


 

Note 4 - Notes Payable

 

Notes payable as of December 31, 2023 and 2022, respectively, consisted of:

 

 

 

December 31,

2023

 

December 31,

2022

 

 

 

 

 

Third Party Notes:

 

 

 

 

Convertible promissory notes

 

$

1,701,018

 

$

1,611,386

Debentures with warrants

 

 

327,664

 

 

327,664

Notes under Investment Agreement

 

 

69,333

 

 

69,333

Promissory notes

 

 

507,635

 

 

480,599

Subtotal - third party notes

 

 

2,605,650

 

 

2,488,982

 

 

 

 

 

 

 

Related Party Notes:

 

 

 

 

 

 

Debentures with warrants

 

 

87,445

 

 

87,445

Demand notes

 

 

30,659

 

 

30,659

Subtotal - related party notes

 

 

118,104

 

 

118,104

Total

 

 

2,723,754

 

 

2,607,086

Current portion

 

 

(2,576,985)

 

 

(2,459,586)

Long-term portion

 

$

146,769

 

$

147,500

 

As of the date of this filing, all notes outstanding as of December 31, 2023, with exception of $146,769 are in default.

 

Convertible Promissory Notes

 

Commencing in December 2014 and through September 2018, the Company issued various convertible promissory notes to third parties to be used for operations. In most cases, these convertible promissory notes are convertible upon issuance into a variable number of shares of common stock. Based on the requirements of ASC 815, we determined that a derivative liability was triggered upon issuance due to the variable conversion price. Using the Black-Scholes pricing model, we calculated the derivative liability upon issuance and recorded the fair market value of the derivative liability as a discount to the convertible promissory notes. When a derivative liability associated with a convertible note is in excess of the face value of the convertible note, the excess of fair value of derivative is charged to the statement of operations. The derivative liability is required to be revalued at each conversion event and at each reporting period. The Company doesn’t account for the derivative liability until the convertible promissory note is convertible. In addition, these convertible promissory notes include various default provisions in which increase the interest rate to rates ranging from 12% to 35% and at times the principal balance at rates ranging from 5% to 50%. Additionally, most convertible promissory notes have prepayment penalties in which range from 15% to 50%.

 

In May, June, September, October, November and December 2020, a total of $90,000 in convertible notes were received. The notes bear an interest rate of 10% and mature on April 1, 2021. The notes are convertible into common stock based upon a 50% discount to the lowest traded price within the 20 trading days preceding the conversion. The note contains various prepayment and default provisions, similar to those disclosed above.

 

On July 23, 2020, the Company entered into a convertible note payable with a third party for proceeds of $25,000. The convertible note incurs interest at 20% per annum, is due 180 days from the date of issuance and is convertible upon issuance into shares of the Company’s common stock at a 50% discount to the average closing bid price during the preceding 10 trading days. The note contains various prepayment and default provisions, similar to those disclosed above.

 

On August 13, 2020, the Company entered into a convertible note payable with a third party for proceeds of $60,000. The convertible note incurs interest at 25% per annum, is due 180 days from the date of issuance and is convertible upon issuance into shares of the Company’s common stock at a 50% discount to the average closing bid price during the preceding 10 trading days. The note contains various prepayment and default provisions, similar to those disclosed above.

 

In September 2020, a $40,000 convertible note was sold from one third party to another. Under the terms of the new note agreement, principal of $98,367 is due on year from the date of issuance. The notes bear an interest rate of 10% and mature on April 1, 2021. The notes are convertible into common stock based upon a 50% discount to the lowest traded price within the 20 trading days preceding the


F-24


conversion. The note contains various prepayment and default provisions, similar to those disclosed above. The difference between the carry value of the new note and the old not plus accrued interest was $38,405 and recorded as interest expense.

 

In November 2020, a $50,000 convertible note with accrued interest of $23,877 was sold from one third party to another. Under the terms of the new note agreement, principal of $73,877 is due on year from the date of issuance. The notes bear an interest rate of 10% and mature on April 1, 2021. The notes are convertible into common stock based upon a 50% discount to the lowest traded price within the 20 trading days preceding the conversion. The note contains various prepayment and default provisions, similar to those disclosed above.

 

At various times during the year ended December 31, 2021, the Company entered into convertible notes payable totaling $437,536 receiving proceeds of $355,000. The terms of the notes range from six months to one year, interest ranging from 8-20% and conversion prices with discounts of up to 50% of the lowest bid prices in days prior ranging from five to 25 days. In addition, the Company issued $500,000 in convertible notes payable for services for which the terms are similar to those noted above.

 

In March 2021, a note with $472,431 in principal and $299,456 in accrued interest was sold to a third party for which the Company entered into a new convertible note of $771,887. Under the terms of the new note agreement, principal of $73,877 is due one year from the date of issuance. The notes bear an interest rate of 10% and mature in one year. The note is convertible into common stock based upon a 50% discount to the lowest traded price within the 20 trading days preceding the conversion.  The note contains various prepayment and default provisions, similar to those disclosed above.

 

During the year ended December 31, 2021, the Company issued 27,952,829 shares of common stock in satisfaction of $1,520,840 in principal and interest. In connection with the conversion, derivative liabilities of $2,637,806 were relieved.

 

At various times during the year ended December 31, 2022, the Company entered into convertible notes payable totaling $150,900 receiving proceeds of $126,650. The terms of the notes range from six months to one year, interest ranging from 4-8% and conversion prices ranging from $0.00025 - $0.0005.

 

During the year ended December 31, 2022, the Company issued 5,550,000 shares of common stock in satisfaction of $27,750 in principal and interest. In connection with the conversion, derivative liabilities of $83,250 were relieved and a loss of $34,500 was recorded.

 

At various times during the year ended December 31, 2023, the Company entered into convertible notes payable totaling $126,150 receiving proceeds of $126,150. The terms of the notes range from six months to one year, interest ranging from 8% - $20% and conversion prices ranging from $0.00025 - $0.000358, which are at a 65% discount to the previous 10 closing prices.

 

During the year ended December, 2023, the Company issued 137,174,000 shares of common stock in satisfaction of $50,454 in principal and interest.

 

2018 Issuances

 

During the year ended December 31, 2018, the Company received $45,775 in proceeds from the issuance of six convertible notes payable. Under the terms of the agreements, the notes are due in 180 days from the date of issuance, incur interest at rates ranging from 10%- 25% per annum and are convertible into common stock at a 50% discount to the average closing bid price  per share of common stock during the 10 consecutive trading days immediately prior to conversion. In addition, the notes include a 50% prepayment penalty. Due to the variable conversion price, the Company recorded a derivative liability in connection with these notes.

 

Discounts and Conversions

 

The convertible notes issued were fully discounted at issuance due to the associated derivative liabilities being in excess of the convertible notes payable. The discounts are being amortized over the terms of the notes. As of December 31 2023 and 2022, respectively, discounts of $0 remained. Amortization expense for the year ended December 31, 2023 and 2022, respectively, was $0 and $229,523. At December 31, 2023, the derivative liabilities were re-valued at $2,616,951 which resulted in a gain on change in the fair market value of derivative liabilities of $3,238,593. See below for weighted average variables used.

 

As of December 31, 2023, these convertible notes were convertible into approximately 32.0 billion shares of common stock, which is in excess of the total authorized shares.


F-25


 

Derivative Liabilities

 

During the years ended December 31, 2023 and 2022, respectively, the range of inputs used to calculate the derivative liability were as follows:

 

 

 

December 31, 2023

 

December 31, 2022

 

 

 

 

 

Exercise price per share

 

$0.00036

 

$0.00005

Expected life (years)

 

1.00

 

0.50

Risk-free interest rate

 

4.15%

 

3.92%

Expected volatility

 

1701%

 

1712%

 

Debentures with Warrants

 

At various dates in 2014 and 2013, the Company issued debentures with warrants totaling $347,664. These debentures contain interest rates ranging from 8% to 20% and matured at various times from July 2014 through July 2015. As of December 31, 2023 and 2022, respectively, these notes were in technical default. The warrants issued with these debentures contain an exercise price of $2,500 per share and expired three years from the date of issuance.

 

Notes Issued Under an Investment Agreement

 

On April 29, 2013, the Company entered into an Investment Agreement, in which an investor agreed to purchase debentures up to a total principal amount of $1,100,000. This commitment was increased to $2,000,000 based on an agreement modification entered into on December 2, 2013. Each debenture will accrue interest on the unpaid principal of each individual debenture at the rate of 8% per year from the date each debenture is issued until paid. Maturity dates of the debentures issued range from April 2014 through May 2015. In March 2021, the holder transferred $472,431 in principal and $299,456 in accrued interest to a third party for which the Company entered into a new convertible note, see above. As of December 31, 2023 and 2022, respectively, the principal balance owed on these debentures was $69,333, plus accrued interest.

 

Promissory Notes

 

On July 25, 2012, the Company entered into an Intellectual Property Assignment Agreement. In accordance with the terms and conditions contained therein, the Company has agreed to pay the Seller $8,000 in two installments: The first payment of $4,000 was due July 25, 2013, and second payment of $4,000 was due July 25, 2014. The note is currently in default due to non-payment.

 

During the year ended December 31, 2013, the Company issued a $50,000 promissory note bearing interest at 10% and due on May 31, 2014. The note is payable in monthly payments of principal and interest. As of December 31, 2023 and 2022, respectively, the remaining principal balance of $10,606, is past due and in default.

 

In June 2015, the Company received $20,000 in proceeds from convertible notes payable. The notes are convertible, only at the Company’s option, for a minimum of $40,000 in common stock based upon the closing stock price on the date of conversion for a period of one year. In addition, the notes incur interest at 12% per annum and is due June 1, 2016. Since the note is only convertible at the Company’s option, the accounting for such will be triggered if the option is exercised.

 

On July 13, 2020, the Company entered into a $150,000 loan with the Small Business Administration. The note incurs interest at 3.75% per annum with principal and interest due over the period of thirty years. The note is secured by substantially all of the Company’s asset and requires the funds to be used for operational purposes. As of December 31, 2023 and 2022, respectively, the remaining principal balance was $147,500.

 

During the year ended December 31, 2022, the Company issued $209,145 in short-term promissory notes to various parties with interest rates ranging from 20%-50%. The Company also issued approximately $40,000 in short-term promissory notes to various third parties for expenses paid by the third parties on behalf of the Company. These mature on demand or on various dates from April 2022 through September 2022. During the year ended December 31, 2022, the Company repaid approximately $37,558 of these promissory notes.

 

During the year ended December 31, 2022, the Company also entered into two 18-month business loan agreements totaling $160,000. The loans require fixed weekly payments of principal and interest totaling $2,897 through November 2023 and have effective interest rates ranging from 34% to 63%. These loans are also secured by substantially all assets of the Company and have various default


F-26


provisions as defined within the agreement, whereby the debt can be called immediately. As certain of these default provisions have been triggered, the full amount of the remaining principal balance of the loans of $145,942 as of December 31, 2022 has been presented as current although default has not been called by the lender. Net proceeds of $158,175 were received from these loans. An additional $8,000 was paid to a third party for brokering the deal. The on-issuance discount and additional fees paid were recorded as a discount to the loans and are being amortized over the life of the loan. During the year ended December 31, 2022, all of the discount was amortized to interest.

 

Debentures with Warrants Issued to Related Parties

 

At various times in 2014 and 2013, the Company issued debentures with warrants to several related parties for $87,445. These debentures bear interest at 8% and mature at various times from July 2014 through February 2015. As of December 31, 2022 and 2021, all the notes are in default as they are past the maturity dates. The warrants issued with these debentures contain an exercise price of $2,500 per share and expired three years from the date of issuance.

 

Demand Notes Issued to Related Parties

 

The Company has various notes outstanding to related parties totaling $30,659 and $30,659 as of December 31, 2023 and 2022, respectively. These notes are due on demand and have no stated interest rate. The Company records imputed interest in connection with these related party notes.

 

Advances

 

As of December 31, 2023 and December 31, 2022, the Company received advances from a third parties totaling $105,700 and $105,700, respectively. These advances bear interest at 20% per annum and are due 90 days after the funds are received. As of the date of this filing, these advances are considered in default as they are past their maturity date.

 

Line of Credit

 

During the year ended December 31, 2022, the Company took out a business line of credit with a financial institution that provides a credit line of up to $35,000. Advances under this line incur interest as an annual rate of 12.25% plus various other periodic finance charges. As of December 31, 2023 and 2022, $38,998 and $41,934 was outstanding on the line of credit, respectively.

 

Note 5 - Commitments and Contingencies

 

Consulting Agreements

 

On December 30, 2015, effective January 1, 2016, the Company entered into an agreement with two consultants to promote the Company’s RAADR mobile app for a period of 60 days. Under the terms of the agreement, the consultants received a total of 20 shares of common stock and were to be paid a total of $50,000 for their services. In addition, the consultants were to receive 50% of all revenues generated from the RAADR mobile app. As of December 31, 2023 and 2022, respectively, no amounts had been earned under the revenue arrangement.

 

On June 27, 2018, the Company entered into an agreement with an individual whereby the individual is to provide consulting services in exchange for 40 shares of common stock. The shares were valued at $2,000 based upon the closing price of the Company’s common stock on the date of the agreement. The agreement does not provide for a performance commitment, and thus, the common stock was expensed upon issuance.

 

During the year ended December 31, 2018, the Company entered into an agreement with an individual whereby the individual is to provide consulting services in exchange for 100 shares of common stock. The shares were valued at $5,000 based upon the closing price of the Company’s common stock on the date of the agreement. The agreement does not provide for a performance commitment, and thus, the common stock was expensed upon issuance. Additionally, the agreement notes a signing bonus of $10,000 as well as bonuses for certain milestones, none of which have been paid.

 

See Note 6 for an additional agreements.

 

 


F-27


 

Legal

 

On February 6, 2013, we formed a wholly owned subsidiary, Rockstar Digital, Inc. (“Rockstar”), under the laws of the State of Nevada. Rockstar was organized to specialize in internet branding through social media marketing, mobile marketing and iPhone ® app development Company. On October 31, 2013, the Company entered into a settlement agreement with certain former employees to assume responsibility for certain payroll taxes of Rockstar Digital, Inc. (“Rockstar”) and assign its ownership of Mobile Application and Transition Services intellectual property rights to Rockstar. In addition, the Company agreed to not assert a claim against certain computer equipment (cost of $28,307) in use at Rockstar. The Company agreed to assume liability for any payroll taxes owed on payroll paid by the Company on behalf of Rockstar’s employees. The Company estimated this liability at $30,000 which they have recorded in accrued liabilities as of December 31, 2023 and 2022, respectively

 

On July 29, 2014, a default judgment was issued against the Company in Circuit Court of the 11th Judicial Circuit in and for Miami-Dade County, Florida. This judgment stems from a legal filing by a consulting firm, with which the Company entered into an agreement for consulting services, on February 20, 2013. On September 25, 2013, the Company cancelled the agreement because it determined that services had not been provided by consulting firm, as promised per the agreed-upon contract terms. In November 2014, we entered into a settlement agreement whereby the Company shall pay the plaintiff $13,246, in monthly installments of $1,472. In addition, the Company issued options to purchase 20 shares of the Company’s common stock at an exercise price of $8,750 expiring in two years. The Company valued the options on the date of issuance at $21,424 using the Black-Sholes model. The required payments on the settlement have not been made, however, the full amount of the liability has been recorded within accrued liabilities as of December 31, 2023 and 2022, respectively.

 

On April 5, 2017, the Circuit Courts within the Twelfth Judicial Circuit of Florida entered an order approving the stipulation of the parties (the “Stipulation”) in the matter of Northbridge Financial, Inc. (“NBF”) v. Raadr Inc. Under the Stipulation, the Company agreed to issue, as settlement of liabilities owed by the Company to NBF in the aggregate amount of $272,250 (the “Claim Amount”) and the following:

 

(a)In one or more tranches as necessary, 7,000 shares of common stock (the “Initial Issuance”) and $27,500 in fees. 

 

(b)Through the Initial Issuance and any required additional issuances, that number of shares of common stock with an aggregate value equal to the Purchase Price (defined under the Stipulation as the market price (defined as the lowest closing bid price of the Company’s common stock during the valuation period set forth in the Stipulation) less the product of the Discount (equal to 50%) and the market price. 

 

(c)If at any time during the valuation period the closing bid price of the Company’s common stock is below 90% of the closing bid price on the day before an issuance date, the Company will immediately cause to be issued to BF such additional shares as may be required to affect the purposes of the Stipulation. 

 

(d)Notwithstanding anything to the contrary in the Stipulation, the number of shares beneficially owned by NBF will not exceed 4.99% of the Company’s outstanding common stock. 

 

In connection with the Settlement Shares, the Company relied on the exemption from registration provided by Section 3(a)(10) under the Securities Act.

 

The Company cannot reasonably estimate the amount of proceeds NBF expects to receive from the sale of these shares which be used to satisfy the liabilities. Thus, the Company accounts for the transaction as the shares are sold and the liabilities are settled. All amounts are included within accounts payable. Shares in which are held by NBF at each reporting period are accounted for as issued but not outstanding. During the year ended December 31, 2017, the Company issued 6,263 shares of common stock in settlement of $219,250 in accounts payable. The Company valued the common stock issued at $847,250 based upon the closing market price of the common stock on the settlement date. The difference between the fair market value of the common stock and accounts payable relieved of $628,000 was recorded as additional interest expense. As of December 31, 2023 and 2022, respectively, amounts payable to NBF included within accounts payable were $53,000.

 

 

 


F-28


 

Note 6 - Stockholders’ Deficit

 

Authorized Shares

 

As of December 31, 2023, the Company is authorized to issue 39,000,000,000 shares of $0.001 par value common stock and 101,000,000 shares of $0.001 par value preferred stock (of which 20,000,000 have been designated as Series A Preferred Stock, 1,000,000 have been designated as Series E Preferred Stock, and 8,000,000 shares of preferred stock available for the Company to assign or designate such provisions or preferences as may be assigned by the Board of Directors).

 

Effective December 20, 2022, the Company enacted a 100 to 1 reverse stock split. All share and per share amount have been revised to reflect the reverse stock split.

 

Series A Preferred Stock

 

On January 3, 2013, the Company filed a Certificate of Designation with the State of Nevada to designate up to 20,000,000 shares of preferred stock as “Series A”. The Series A holds no voting rights but is automatically convertible into shares of the Company’s common stock immediately upon the effectiveness of a Certificate of Change filed by the Company to increase the number of shares of common stock the Company would become authorized to issue.

 

Series B Preferred Stock

 

As of the date of these consolidated financial statements the designations for the Series B have not been filed with the State, and thus, the proceeds received for sale of these shares to date are reflected as a liability on the accompanying balance sheets at June 30, 2023 and December 31, 2022. The rights and preferences are not valid until the designations are filed. Once approved, the holders are expected to receive warrants to purchase one share of common stock at $50.00 per share. In addition, each share of Series B converted the holder would receive two shares of common stock.

 

Series E Preferred Stock

 

On January 27, 2016, the Company filed a Certificate of Designation with the State of Nevada to designate up to 1,000,000 shares of preferred stock as “Series E”. The Series E hold voting rights equal to twice the number of votes of all outstanding shares of capital stock such that the holders of outstanding shares of Series E shall always constitute 66.67% of the voting rights of the Corporation. All shares of Series E rank subordinate to all of the Company’s common and preferred stock and are not entitled to participate in the distribution of the Company’s assets upon liquidation.

 

Common Stock

 

During the year ended December 31, 2023, the Company sold 89,500,000 shares of common stock for total proceeds of $93,750. The Company also issued 127,820,746 shares of common stock for consulting services. In connection with these issuances, the Company recorded stock-based compensation expense of $301,524 during the year ended December 31, 2023 based on the closing market price of the Company’s stock on the date of grant.

 

During the year ended December 31, 2023, 209,370,320 shares were issued for full-ratchet anti-dilution protection rights to shareholders resulting in a loss of $270,541.

 

During the year ended December 31, 2023, 137,174,000 shares were issued for conversion of notes payable that totaled $50,454 of principal and interest.

 

During the year ended December 31, 2023, 1,700,000,000 shares were issued in a forbearance agreement to three shareholders resulting in a loss of $2,720,000.

 

During the year ended December 31, 2022, the Company sold 30,412,500 shares of common stock for total proceeds of $318,500. The Company also issued 5,791,577 shares of common stock for consulting services. In connection with these issuances, the Company recorded stock-based compensation expense of $282,600 during the year ended December 31, 2022, 2022 based on the closing market price of the Company’s stock on the date of grant. 2,000,000 of these shares were issued with full-ratchet anti-dilution protection rights.

 

See Note 4 for additional common stock issuance.


F-29


Note 7 - Related Party Transactions

 

As of December 31, 2023 and December 31, 2022, amounts included within accrued liabilities related to payroll due to Jacob DiMartino, our Chief Executive Officer, were $617,921 and $636,270, respectively. The Company accrues $15,000 per month in connection with the CEO’s services.

 

During the year ended December 31, 2023the Company made contributions of approximately $6,000 to a youth sports not for profit for which the Company’s Chief Executive Officer has significant influence.

 

See Note 4 discussion related to notes payable and Note 6 for shares issued to related parties.

 

Note 8 - Subsequent Events

 

The Company has evaluated events subsequent to December 31, 2023 and through the date these financial statements have been prepared and has determined no events, other than those disclosed above, have occurred that would materially affect these consolidated financial statements.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


F-30


 

MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(unaudited)

 

 

June 30, 2024

 

December 31, 2023

ASSETS

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

Intangible assets, net

$

11,692,611

 

$

12,257,161

TOTAL NON-CURRENT ASSETS

 

11,692,611

 

 

12,257,161

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Prepaid expenses and other current assets

 

232,225

 

 

8,668

Accounts receivable, net

 

28,300,087

 

 

31,360,759

Cash

 

46,041

 

 

24,303

TOTAL CURRENT ASSETS

 

28,578,354

 

 

31,393,730

TOTAL ASSETS

$

40,270,965

 

$

43,650,891

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Deferred tax liability

$

528,341

 

$

528,341

Accounts payable

 

31,169,028

 

 

36,117,779

Accrued provider costs

 

1,776,864

 

 

---

Accrued expenses

 

973

 

 

155,768

TOTAL CURRENT LIABILITIES

 

33,475,206

 

 

36,801,888

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

Due to related party

 

6,252,327

 

 

5,675,040

TOTAL LIABILITIES

 

39,727,533

 

 

42,476,928

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

EQUITY

 

543,432

 

 

1,173,963

TOTAL LIABILITIES AND EQUITY

$

40,270,965

 

$

43,650,891

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-31


 

 

MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Statement of Profit and Loss

For the Six Months Ended June 30, 2024 and 2023

(unaudited)

 

 

Six Months Ended June 30,

 

2024

 

2023

 

 

 

 

 

 

REVENUES, NET

$

17,663,834

 

$

100,000,366

COST OF SALES

 

(16,948,183)

 

 

(96,485,394)

GROSS PROFIT

 

715,651

 

 

3,514,972

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

Depreciation and amortization

 

564,000

 

 

-

Other expenses

 

-

 

 

23,428

General and administrative expenses

 

787,940

 

 

1,460,130

TOTAL OPERATING EXPENSES

 

1,352,490

 

 

1,483,558

 

 

 

 

 

 

OPERATING PROFIT (LOSS)

 

(636,839)

 

 

2,031,414

 

 

 

 

 

 

FINANCE COSTS

 

6,308

 

 

(855,448)

 

 

 

 

 

 

OTHER NON-OPERATING INCOME

 

-

 

 

120,433

 

 

 

 

 

 

OTHER NON-OPERATING EXPENSES

 

-

 

 

(18,930)

 

 

 

 

 

 

PROFIT (LOSS) BEFORE TAX EXPENSE

 

(630,531)

 

 

1,277,469

 

 

 

 

 

 

TAX EXPENSE

 

-

 

 

(6,000)

 

 

 

 

 

 

NET PROFIT (LOSS)

$

(630,531)

 

$

1,271,469

 

 

 

 

 

 

NET LOSS PER COMMON SHARE

 

 

 

 

 

Basic

$

(6,305)

 

$

12,715

Diluted

$

(6,305)

 

$

12,715

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

Basic

 

100

 

 

100

Diluted

 

100

 

 

100

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-32


MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Statement of Changes in Equity

For the Six Months Ended June 30, 2024 and 2023

(unaudited)

 

 

Common Stock

 

Retained Earnings

(Accumulated Deficit)

 

Total

 

 

 

 

 

 

 

 

 

Balances at January 1, 2023

$

100

 

$

(159,120)

 

$

(159,120)

Net profit (loss)

 

-

 

 

1,271,469

 

 

1,271,469

Balances at June 30, 2023

$

100

 

$

1,112,349

 

$

1,112,349

 

 

 

 

 

 

 

 

 

Balances at January 1, 2024

$

100

 

$

1,173,963

 

$

1,173,963

Net profit (loss)

 

-

 

 

(630,531)

 

 

(630,531)

Balances at June 30, 2024

$

100

 

$

543,432

 

$

543,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-33


MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Six Months Ended June 30, 2024 and 2023

(unaudited)

 

 

Six Months Ended June 30,

 

2024

 

2023

 

 

 

 

 

 

Statement of changes in cashflows

 

 

 

 

 

Net income (loss)

$

(630,531)

 

$

1,271,469

Adjustments:

 

 

 

 

 

Provision for doubtful accounts

 

-

 

 

-

Interest expense

 

-

 

 

-

Amortization of intangible assets

 

564,550

 

 

-

Provision for income taxes

 

-

 

 

-

Changes in operating assets and liabilities

 

-

 

 

-

Prepaid expenses and other current assets

 

(223,557)

 

 

1,323,566

Accounts receivable

 

3,060,671

 

 

21,411,300

Accounts payable

 

(4,948,751)

 

 

(24,236,719)

Accrued expenses

 

1,622,069

 

 

290,210

Net cash - operating activities

 

(555,549)

 

 

59,826

 

 

 

 

 

 

Cash acquired via business combination, net of cash paid of $250,000

 

-

 

 

1,171,875

Net cash - investing activities

 

-

 

 

1,171,875

 

 

 

 

 

 

Due to related party

 

577,287

 

 

-

Net cash - financing activities

 

577,287

 

 

-

 

 

 

 

 

 

Net change in cash

 

21,738

 

 

1,231,701

Cash - beginning of period

 

24,303

 

 

25,267

Cash - end of period

$

46,041

 

$

1,256,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-34


MEXEDIA, INC. AND SUBSIDIARIES

Notes to Unaudited Consolidated Financial Statements

June 30, 2024

 

 

1.ORGANIZATION AND DESCRIPTION OF BUSINESS 

 

Mexedia, Inc. is a Florida Corporation organized in 2020. On January 1, 2023, Mexedia, Inc. acquired all the shares of Phonetime, Inc. and Matchcom Telecommunications, Inc. (collectively referred as the “Company”). The Company is a technology company in the areas of customer-management and telecom and provides retail and wholesale voice services and value-added platform services such as analytics, automation, and engagement.

 

The address of the Company’s registered office is 1680 Michigan Avenue, Suite 700, Miami Beach Florida 33139.

 

2.SIGNIFICANT ACCOUNTING POLICIES 

 

Basis of Consolidation

 

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

 

The Company has a calendar year-end reporting date.

 

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board (IASB) and Interpretations (collectively IFRSs).

 

Functional and Presentation Currency

 

These consolidated financial statements are presented in United States dollars, which is the Company’s functional currency.

 

Liquidity

 

The Company’s primary source of liquidity are the cash flows generated from operations and advances from related parties. These sources of liquidity are needed to fund the operations of the Company and its working capital requirements. Management believes the existing sources of cash will be sufficient to support the Company’s existing operations through at least twelve months from the date of the report.

 

Use of Estimates

 

The preparation of consolidated financial statements in conformity with IFRS requires the use of certain accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. Although these estimations, based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results, and those differences may be material,

 

Concentrations of Credit Risk

 

Cash

 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash deposits in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limit of $250,000. The Company generally limits its exposure by placing its deposits with quality financial institutions located in the United States. However, at times, such cash balances may be in excess of insured amounts.


F-35


 

Revenues

 

The Company relies on a significant portion of its revenue from major customers. Revenues from two customers represented 30% of the Company’s revenues for the six-months ended June 30, 2024. An adverse change in the Company’s relationship with these customers could have a material effect on the Company’s business, financial position, and results of operations.

 

Accounts Receivable

 

As of June 30, 2024, two customers. each of which accounted for more than 10% of the Company’s accounts receivable, accounted for 55% of total accounts receivable in aggregate.

 

Revenue Recognition

 

The Company recognizes revenue when a customer obtains control of the promised goods or services. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (t) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services the Company transfers to the customer. At contract inception, management reviews the contract to determine which performance obligations must be delivered and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied.

 

Accounts Receivable

 

The Company records accounts receivable in the ordinary course of business related to its sale of telecommunication products and services. The Company grants credit to various businesses and individuals located primarily in the United States and Europe. Accounts receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to valuation allowance based on historical experience and management’s assessment of the status of individual accounts. Balances that are still outstanding after management has made reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable.

 

Accrued Revenue

 

Accrued revenue (unbilled accounts receivable) consists of revenue meeting the revenue recognition criteria but not yet invoiced at period end due to contract terms.

 

Goodwill and Intangible Assets

 

Goodwill represents the excess of the purchase price over the fair values underlying net assets acquired in an acquisition. Goodwill is allocated to a cash generating unit (CGU), or a group of CGUs, which cannot be larger than an operating segment before aggregation. A CGU is the smallest identifiable group of assets that generates largely independent cash flows.

 

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss in the caption amortization expense.

 

Goodwill is tested at least annually for impairment or more frequently if an impairment indicator is present. An impairment loss is measured as the difference between the carrying amount of the CGU, including goodwill, and its recoverable amount. The recoverable amount is the higher of fair value less cost of disposal or value in use. Any impairment loss for a CGU is allocated first to any goodwill and then pro rata to other assets in the CGU. However, no asset is written down to below its known recoverable amount. There was no impairment of goodwill for the year ended June 30, 2024.

 

Intangible assets are to be tested for impairment if there is an indicator of impairment during the course of or at the end of the reporting period. During the period ended June 30, 2024, management believes there was no indicator of impairment of the intangible assets.


F-36


 

Accounts Payables and Accrued Expenses

 

Liabilities for accounts payable and other amounts are normally settled on 30 - 90-day terms and carried at cost which is the fair value of the consideration to be paid for goods and services received.

 

Financial Instruments

 

Financial instruments are initially recorded at cost, and consist of cash, accounts receivable, due from/to related parties, and accounts payable and accrued expenses. As of June 30, 2024, the carrying value of these financial instruments approximates their fair value due to their short-term nature

 

Income Taxes

 

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. In assessing the recoverability of deferred tax assets, the Company relies on forecasted assumptions. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction directly in equity. Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are recognized subsequently if new information about facts and circumstances change. The adjustment is either treated as a reduction in goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period or recognized in profit or loss.

 

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered

 

Some judgment is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognizes liabilities for anticipated tax based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made,

 

Subsequent Events

 

The Company has evaluated subsequent events through August 15, 2024, which is the date the consolidated financial statements were available to be issued.

 

3.CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 

 

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

 

Accounts Receivable

 

The Company assesses at each consolidated statement of financial position date the impact of the IFRS 9 simplified approach used to measure expected credit losses using a lifetime expected credit loss provision for trade receivables. As of June 30, 2024, the Company had no provisions for expected credit loss.


F-37


Goodwill and Intangible Assets

 

Assumptions and estimates at arriving at goodwill and intangible assets including the fair value of the assets acquired and liabilities assumed, the fair value of consideration transferred, and the estimated useful lives of the intangible assets.

 

4.RELATED PARTY TRANSACTIONS 

 

Mexedia, Ltd.

 

Due to Related Parties

 

The Company from time to time is advanced monies for operational purposes by Mexedia, Ltd., a related entity through common ownership. As of June 30, 2024, the Company owed Mexedia Ltd. $6,252,327. This balance carries no interest and is due on demand. However, the Company does not expect to repay these balances over the next twelve months and as such has classified the balance as non-current on the accompanying statement of financial position.

 

5.BUSINESS COMBINATIONS 

 

On January 1, 2023, the Company acquired two separate businesses as part of a single transaction. The acquisition was accounted for as a business combination using the acquisition method of accounting.

 

The Company entered into a Purchase Agreement (the “Agreement”) to purchase all of the outstanding shares of Phonetime, Inc. and Matchcom Telecommunications, Inc. (collectively referred to as the “Sellers”). The initial aggregate purchase consideration on the date of acquisition transferred to the Sellers totaled $3,000,000. Subsequent to the acquisition date, but during the measurernent period, management became aware that certain account receivables that were contingent of the final payment of $2,500,000, were not collected. As a result, management believes the Company is not entitled to make that payment based on the terms of the contract. Additionally, management believes the second payment of $250,000, due twelve months after closing, is also not due since management believes that payment was also tied to the collection of the same receivables. Therefore, management has adjusted the consideration due and the related goodwill amount to account for foregoing these payments. As a result, the eventual purchase price subsequent to the measurement period adjustments amounted to $250,000.

 

The purchase price for the acquisition has been allocated to the tangible assets acquired and liabilities assumed based upon their estimated fair values as of the Closing Date. There were no identifiable intangible assets. The excess of the purchase price over the estimated fair value of the tangible acquired and liabilities assumed has been recorded as goodwill.

 

The fair value of the acquired accounts receivable above approximates the carrying value of accounts receivable due to the short-term nature of the expected timeframe to collect amounts due to the Company and the contractual cash flows, which are expected to be collected related to these receivables.

 

Acquisition-related expenses were expensed as incurred. The results of operations are included in the consolidated financial statements of the Company from the date of acquisition.

 

6.COMMITMENTS AND CONTINGENCIES 

 

Operating Leases

 

The Company leases office space in Miami Beach, Florida under a one-year operating lease through March 2025. The lease calls for monthly lease payments of approximately $350.

 

Litigation

 

In the ordinary course of business, the Company may become a party to various claims, legal actions and complaints. In the opinion of management, there were no matters that would have a material adverse effect on the consolidated financial condition of the Company as of June 30, 2024.

 

7.COMMON STOCK 

 

As of June 30, 2024, the Company has authorized and issued 100 common stock shares with a par value of $1.00.


F-38


 

8.SUBSEQUENT EVENT 

 

The Company has evaluated subsequent events through August 15, 2024, the date these consolidated financial statements were available to be issued.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


F-39


 

MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Balance Sheets

(unaudited)

 

 

December 31, 2023

 

December 31, 2022

ASSETS

 

 

 

 

 

NON-CURRENT ASSETS

 

 

 

 

 

Intangible assets, net

$

10,646,900

 

$

---

Goodwill

 

1,610,261

 

 

---

TOTAL NON-CURRENT ASSETS

 

12,257,161

 

 

---

 

 

 

 

 

 

CURRENT ASSETS

 

 

 

 

 

Prepaid expenses and other current assets

 

8,668

 

 

2,908

Accounts receivable, net

 

31,360,759

 

 

---

Cash

 

24,303

 

 

25,267

Loan to Phonetime, Inc.

 

---

 

 

2,550,000

Other assets, purchase deposit

 

---

 

 

250,137

TOTAL CURRENT ASSETS

 

31,393,730

 

 

2,578,175

TOTAL ASSETS

$

43,650,891

 

$

2,828,312

 

 

 

 

 

 

LIABILITIES AND EQUITY

 

 

 

 

 

CURRENT LIABILITIES

 

 

 

 

 

Deferred tax liability

$

528,341

 

$

2,004

Accounts payable

 

12,961,856

 

 

24,775

Accrued expenses

 

23,311,691

 

 

---

TOTAL CURRENT LIABILITIES

 

36,801,888

 

 

26,779

 

 

 

 

 

 

NON-CURRENT LIABILITIES

 

 

 

 

 

Due to related party

 

5,675,040

 

 

2,692,387

TOTAL LIABILITIES

 

42,476,928

 

 

2,719,166

 

 

 

 

 

 

COMMITMENTS AND CONTINGENCIES

 

 

 

 

 

EQUITY

 

1,173,963

 

 

109,146

TOTAL LIABILITIES AND EQUITY

$

43,650,891

 

$

2,828,312

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-40


MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Statement of Profit and Loss

For the Years Ended December 31, 2023 and 2022

(unaudited)

 

 

Years Ended December 31,

 

2023

 

2022

 

 

 

 

 

 

REVENUES, NET

$

215,325,822

 

$

276,535

COST OF SALES

 

207,738,077

 

 

---

GROSS PROFIT

 

7,587,745

 

 

276,535

 

 

 

 

 

 

OPERATING EXPENSES

 

 

 

 

 

Salaries and benefits

 

1,703,710

 

 

148,265

Professional fees

 

326,550

 

 

35,575

Bad debt expense

 

200,971

 

 

---

Amortization expense

 

1,129,100

 

 

---

Other operating expenses

 

437,459

 

 

255,430

TOTAL OPERATING EXPENSES

 

3,797,790

 

 

439,270

 

 

 

 

 

 

OPERATING PROFIT (LOSS)

 

3,789,955

 

 

(162,735)

 

 

 

 

 

 

FINANCE COSTS

 

(1,928,631)

 

 

---

 

 

 

 

 

 

PROFIT BEFORE TAX EXPENSE

 

1,861,324

 

 

(162,735)

 

 

 

 

 

 

TAX EXPENSE

 

(528,344)

 

 

---

 

 

 

 

 

 

PROFIT (LOSS)

$

1,332,983

 

$

(162,735)

 

 

 

 

 

 

NET LOSS PER COMMON SHARE

 

 

 

 

 

Basic

$

13,330

 

$

(1,627)

Diluted

$

13,330

 

$

(1,627)

 

 

 

 

 

 

WEIGHTED AVERAGE COMMON SHARES OUTSTANDING

 

 

 

 

 

Basic

 

100

 

 

100

Diluted

 

100

 

 

100

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-41


MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Statement of Changes in Equity

For the Years Ended December 31, 2023 and 2022

(unaudited)

 

 

Common Stock

 

Retained Earnings

(Accumulated Deficit)

 

Total

 

 

 

 

 

 

 

 

 

Balances at January 1, 2022

$

-

 

$

-

 

$

-

Issuance of common stock

 

-

 

 

-

 

 

-

Net loss

 

-

 

 

-

 

 

-

Balances at December 31, 2022

$

100

 

$

(159,120)

 

$

(159,020)

Net income

 

-

 

 

1,332,983

 

 

1,332,983

Balances at December 31, 2023

$

100

 

$

1,173,863

 

$

1,173,863

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-42


MEXEDIA, INC. AND SUBSIDIARIES

Consolidated Statements of Cash Flows

For the Years Ended December 31, 2023 and 2022

(unaudited)

 

 

Years Ended December 31,

 

2023

 

2022

 

 

 

 

 

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

Net income (loss)

$

1,322,983

 

$

(162,735)

Adjustments to reconcile net income to net cash used in operating activities:

 

 

 

 

 

Provision for doubtful accounts

 

200,971

 

 

---

Interest expense

 

378,201

 

 

179,960

Amortization of intangible assets

 

1,129,100

 

 

---

Provision for income taxes

 

528,341

 

 

---

Changes in operating assets and liabilities

 

 

 

 

 

Prepaid expenses and other current assets

 

2,146,732

 

 

2,908

Accounts receivable

 

29,919,255

 

 

---

Accounts payable

 

(20,514,338)

 

 

---

Accrued expenses

 

(18,844,084)

 

 

137

NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES

 

(3,722,839)

 

 

20,270

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

Decrease in due from related party

 

2,950,000

 

 

---

Cash acquired via business combination, net of cash paid of $250,000

 

1,171,875

 

 

---

Purchase deposit for business combination

 

---

 

 

(250,000)

NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES

 

4,121,875

 

 

(250,000)

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

Decrease in due to related party

 

(400,000)

 

 

2,692,387

Loan granted to commercial partner

 

---

 

 

(2,550,000)

NET CASH USED IN FINANCING ACTIVITIES

 

(400,000)

 

 

142,387

 

 

 

 

 

 

NET INCREASE (DECREASE) IN CASH

 

(964)

 

 

(87,343)

CASH, BEGINNING OF PERIOD

 

25,267

 

 

112,610

CASH, END OF PERIOD

$

24,303

 

$

25,267

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited consolidated financial statements.


F-43


 

MEXEDIA, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements

December 31, 2023 and 2022

 

1.ORGANIZATION AND DESCRIPTION OF BUSINESS 

 

Mexedia, Inc. is a Florida Corporation organized in 2020. On January 1, 2023, Mexedia, Inc. acquired all the shares of Phonetime, Inc. and Matchcom Telecommunications, Inc. (collectively referred as the “Company”). The Company is a technology company in the areas of customer-management and telecom and provides retail and wholesale voice services and value-added platform services such as analytics, automation, and engagement.

 

The address of the Company’s registered office is 1680 Michigan Avenue, Suite 700, Miami Beach Florida 33139.

 

2.SIGNIFICANT ACCOUNTING POLICIES 

 

Basis of Consolidation

 

The accompanying consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All significant intercompany transactions and balances have been eliminated in consolidation.

 

The Company has a calendar year-end reporting date.

 

Basis of Presentation

 

The accompanying consolidated financial statements have been prepared in accordance with International Financial Reporting Standards and International Accounting Standards as issued by the International Accounting Standards Board (IASB) and Interpretations (collectively IFRSs).

 

Functional and Presentation Currency

 

These consolidated financial statements are presented in United States dollars, which is the Company’s functional currency.

 

Liquidity

 

The Company’s primary source of liquidity are the cash flows generated from operations and advances from related parties. These sources of liquidity are needed to fund the operations of the Company and its working capital requirements. Management believes the existing sources of cash will be sufficient to support the Company’s existing operations through at least twelve months from the date of the report.

 

Use of Estimates

 

The preparation of consolidated financial statements in conformity with IFRS requires the use of certain accounting estimates. It also requires management to exercise its judgment in the process of applying the Company’s accounting policies. Although these estimations, based on management’s knowledge of current events and actions it may undertake in the future, they may ultimately differ from actual results, and those differences may be material,

 

Concentrations of Credit Risk

 

Cash

 

Financial instruments, which potentially subject the Company to concentrations of credit risk, consist principally of cash deposits in excess of the Federal Deposit Insurance Corporation (“FDIC”) insured limit of $250,000. The Company generally limits its exposure by placing its deposits with quality financial institutions located in the United States. However, at times, such cash balances may be in excess of insured amounts.

 

Revenues

 

The Company relies on a significant portion of its revenue from major customers. Revenues from two customers represented 30% of the Company’s revenues for the year ended December 31, 2023. An adverse change in the Company’s relationship with these customers could have a material effect on the Company’s business, financial position, and results of operations.


F-44


Accounts Receivable

 

As of December 31, 2023, two customers. each of which accounted for more than 10% of the Company’s accounts receivable, accounted for 55% of total accounts receivable in aggregate.

 

Revenue Recognition

 

Under IFRS 15, the Company recognizes revenue when a customer obtains control of the promised goods or services. The amount of revenue that is recorded reflects the consideration that the Company expects to receive in exchange for those goods or services. The Company applies the following five-step model in order to determine this amount: (t) identify the contract(s) with a customer; (ii) identify the performance obligations in the contract; (iii) determine the transaction price; (iV) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) the Company satisfies a performance obligation. The Company only applies the five-step model to contracts when it is probable that the Company will collect the consideration it is entitled to in exchange for the goods or services the Company transfers to the customer. At contract inception, once the contract is determined to be within the scope of IFRS 15, management reviews the contract to determine which performance obligations must be delivered and which of these performance obligations are distinct. The Company recognizes as revenue the amount of the transaction price that is allocated to the respective performance obligation when the performance obligation is satisfied.

 

The following is a description of the business units, from which the Company generates its revenues.

 

Carrier sales - reflects the sales of Wholesale Voice over the Internet protocol (VoIP) traffic It consists of large sales volumes (minutes of traffic, destinations, and rates) of traffic exchanged with our customers. The Company is responsible for raising or “buying” the forecasted traffic to sell to its customers. 

 

SMS sales - Similarly as VoIP sales, SMS or “Short Messaging Services” includes the sale of messages on a wholesale basis to the Company’s customers, for termination within their network of suppliers. 

 

Late fees - amounts charged for delinquent accounts and contractual agreements. 

 

The table below sets forth the Company’s revenue disaggregated within each business unit for the year ended December 31, 2023:

 

Carrier

 

$

210,076,611

SMS

 

 

5,198,306

Late Fees

 

 

50,905

 

 

$

215,325,822

 

Accounts Receivable

 

The Company records accounts receivable in the ordinary course of business related to its sale of telecommunication products and services. The Company grants credit to various businesses and individuals located primarily in the United States and Europe. Accounts receivables are stated at the amount management expects to collect from outstanding balances. Management provides for probable uncollectible amounts through a charge to earnings and a credit to valuation allowance based on historical experience and management’s assessment of the status of individual accounts. Balances that are still outstanding after management has made reasonable collection efforts are written off through a charge to the valuation allowance and a credit to accounts receivable. Management has reserved approximately $95,000 towards the allowance for doubtful accounts as of December 31, 2023.

 

Accrued Revenue

 

Accrued revenue (unbilled accounts receivable) consists of revenue meeting the revenue recognition criteria but not yet invoiced at period end due to contract terms.

 

Business Combinations

 

The Company accounts for business combinations in accordance with IFRS 3, Business Combinations (“IFRS 3”), which requires that the Company allocates the purchase price to the tangible and intangible assets acquired and the liabilities assumed based on estimated fair values. This guidance requires the Company to make significant estimates and assumptions, including fair value estimates, as of the acquisition date and to adjust those estimates as necessary during the measurement period (defined as the period, not to exceed one year, in which the Company may adjust the provisional amounts recognized for an acquisition). Should the initial accounting for an acquisition be incomplete by the end of a reporting period that falls within the measurement period, the Company reports provisional amounts in its consolidated financial statements. During the measurement period, the Company adjusts the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known,


F-45


would have affected the measurement of the amounts recognized as of that date, and the Company records those adjustments to its consolidated financial statements.

 

Goodwill and Intangible Assets

 

Goodwill represents the excess of the purchase price over the fair values underlying net assets acquired in an acquisition. Under International Accounting Standard (“IAS”) 36, goodwill is allocated to a cash generating unit (CGU), or a group of CGUs, which cannot be larger than an operating segment before aggregation. A CGU is the smallest identifiable group of assets that generates largely independent cash flows.

 

Intangible assets with finite lives are amortized over the useful economic life and assessed for impairment whenever there is an indication that the intangible asset may be impaired. The amortization period and the amortization method for an intangible asset with a finite useful life are reviewed at least at the end of each reporting period. Changes in the expected useful life or the expected pattern of consumption of future economic benefits embodied in the asset are considered to modify the amortization period or method, as appropriate, and are treated as changes in accounting estimates. The amortization expense on intangible assets with finite lives is recognized in the statement of profit and loss in the caption amortization expense.

 

Under IAS 36, goodwill is tested at least annually for impairment or more frequently if an impairment indicator is present. An impairment loss is measured as the difference between the carrying amount of the CGU, including goodwill, and its recoverable amount. The recoverable amount is the higher of fair value less cost of disposal or value in use. Any impairment loss for a CGU is allocated first to any goodwill and then pro rata to other assets in the CGU. However, no asset is written down to below its known recoverable amount. There was no impairment of goodwill for the year ended December 31, 2023

 

Intangible assets are to be tested for impairment if there is an indicator of impairment during the course of or at the end of the reporting period. During 2023, management believes there was no indicator of impairment of the intangible assets.

 

Accounts Payables and Accrued Expenses

 

Liabilities for accounts payable and other amounts are normally settled on 30 - 90-day terms and carried at cost which is the fair value of the consideration to be paid for goods and services received.

 

Financial Instruments

 

Financial instruments are initially recorded at cost, and consist of cash, accounts receivable, due from/to related parties, and accounts payable and accrued expenses. As of December 31, 2023, the carrying value of these financial instruments approximates their fair value due to their short-term nature

 

Income Taxes

 

The carrying amount of deferred tax assets is reviewed at each reporting date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. Unrecognized deferred tax assets are re-assessed at each reporting date and are recognized to the extent that it has become probable that future taxable profits will allow the deferred tax asset to be recovered. In assessing the recoverability of deferred tax assets, the Company relies on forecasted assumptions. Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the year when the asset is realized or the liability is settled, based on tax rates that have been enacted or substantively enacted at the reporting date. Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss. Deferred tax items are recognized in correlation to the underlying transaction directly in equity. Tax benefits acquired as part of a business combination, but not satisfying the criteria for separate recognition at that date, are recognized subsequently if new information about facts and circumstances change. The adjustment is either treated as a reduction in goodwill (as long as it does not exceed goodwill) if it was incurred during the measurement period or recognized in profit or loss.

 

The Company offsets deferred tax assets and deferred tax liabilities if and only if it has a legally enforceable right to set off current tax assets and current tax liabilities and the deferred tax assets and deferred tax liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities which intend either to settle current tax liabilities and assets on a net basis, or to realize the assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax liabilities or assets are expected to be settled or recovered

 

Some judgment is required in determining the provision for income taxes. There are many transactions and calculations for which the ultimate tax determination is uncertain during the ordinary course of business. The Company recognizes liabilities for anticipated tax based on estimates of whether additional taxes will be due. Where the final tax outcome of these matters is different from the amounts


F-46


that were initially recorded, such differences will impact the income tax and deferred tax provisions in the period in which such determination is made,

 

Offsetting

 

As of December 31, 2023, the Company offset a portion of accounts receivable and accounts payable, A right to offset is a debtor’s right, by contract or otherwise, to settle or otherwise eliminate all or a portion of an amount due to a creditor by applying against that amount an amount due from the creditor. Two conditions must exist for an entity to offset a financial liability (and thus present the net amount on the balance sheet). The entity must both: 1) Currently have a legally enforceable right to offset and 2) Intent either to settle on a net basis or to realize the asset and settle the liability simultaneously Management believes both of these conditions exist on December 31, 2023.

 

Offsetting of accounts receivable - As of December 31, 2023:

 

 

 

Gross amounts of

recognized assets

 

Gross amounts offset

in the consolidated

balance sheet

 

Net amounts of assets

presented in the

consolidated

balance sheets

Accounts receivable

 

$     36,513,193

 

$     (5,152,434)

 

$     31,360,759

 

Offsetting of accounts payable - As of December 31, 2023:

 

 

 

Gross amounts of

recognized liabilities

 

Gross amounts offset

in the consolidated

balance sheet

 

Net amounts of assets

presented in the

consolidated

balance sheets

Accounts payable

 

$     18,114,290

 

$     (5,152,434)

 

$     12,961,856

 

Foreign Currency

 

The Company’s functional currency is the U.S. dollar. Gains and losses from translation of foreign currency financial statements into U.S. dollars are included in current results of operations. Gains and Iosses resulting from foreign currency transactions are also included in current results of operations.

 

Standards, Amendments, and Interpretations to Existing Standards That are Not Yet Effective

 

The Company has not applied the following new or revised standards, amendments and interpretations to existing standards that have been issued but are not yet effective:

 

Classification of liabilities as current or non-current and non-current liabilities with covenants (Amendments to IAS 1) 

 

Supplier finance arrangements (IAS 7 and IFRS 7) 

 

Lease liability in a sale and leaseback (Amendments to IFRS 16) 

 

Lack of exchangeability (Amendments to IAS 21) 

 

The Company’s management does not expect that the adoption of these standards or interpretations in future periods will have a material impact on the financial statements of the Company.

 

Subsequent Events

 

The Company has evaluated subsequent events through March 18, 2024, which is the date the consolidated financial statements were available to be issued.

 

 


F-47


 

3.CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS 

 

Estimates and judgments are continually evaluated and are based on historical experience and other factors, including expectations of future events that are believed to be reasonable under the circumstances.

 

The Company makes estimates and assumptions concerning the future. The resulting accounting estimates will, by definition, seldom equal the related actual results. The estimates and assumptions that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are as follows:

 

Accounts Receivable

 

The Company assesses at each consolidated statement of financial position date the impact of the IFRS 9 simplified approach used to measure expected credit losses using a lifetime expected credit loss provision for trade receivables. As of December 31, 2023, the Company has a provision for expected credit loss of approximately $95,000.

 

Goodwill and Intangible Assets

 

Assumptions and estimates at arriving at goodwill and intangible assets including the fair value of the assets acquired and liabilities assumed, the fair value of consideration transferred, and the estimated useful lives of the intangible assets.

 

4.ACCOUNTS RECEIVABLE 

 

Accounts receivable consist of the following at December 31, 2023:

 

Billed accounts receivable, net

 

$

18,904,934

Unbilled accounts receivable

 

 

12,455,825

 

 

$

31,360,759

 

5.RELATED PARTY TRANSACTIONS 

 

Mexedia, Ltd.

 

Due to Related Parties

 

The Company from time to time is advanced monies for operational purposes by Mexedia, Ltd., a related entity through common ownership. As of December 31, 2023, the Company owes Mexedia, Ltd. $5,675,040. This balance bears interest at 6.00% and is due on demand. However, the Company does not expect to repay these balances over the next twelve months and as such has classified the balance as non-current on the accompanying statement of financial position

 

Interest expense related to these advances totaled approximately $378,000 for the year ended December 31, 2023 and is included within the caption finance costs in the accompanying consolidated statement of profit and loss.

 

Accounts Receivable, net - Related Parties

 

As of December 31, 2023, $529,473 of unbilled accounts receivable were due from Mexedia, Ltd. This balance is included within the caption accounts receivable, net in the accompanying consolidated statement of financial position.

 

Accounts Payable - Related Parties

 

As of December 31, 2023, accounts payable to Mexedia, Ltd, total $2,758,303. This balance is included within the caption accounts payable in the accompanying consolidated balance sheet.

 

Sales - Related Parties

 

During 2023, the Company sold approximately $17,073,536 of services to Mexedia, Ltd.

 

Purchases- Related Parties

 

During 2023, the Company purchased approximately $5,313,000 of services from Mexedia, Ltd.


F-48


 

6.BUSINESS COMBINATIONS 

 

On January 1, 2023, the Company acquired two separate businesses as part of a single transaction The acquisition was accounted for as a business combination using the acquisition method of accounting in accordance with IFRS 3, Business Combinations.

 

The Company entered into a Purchase Agreement (the “Agreement”) to purchase all of the outstanding shares of Phonetime, Inc. and Matchcom Telecommunications, Inc. (collectively referred to as the “Sellers”). The initial aggregate purchase consideration on the date of acquisition transferred to the Sellers totaled $3,000,000. Subsequent to the acquisition date, but during the measurernent period, management became aware that certain account receivables that were contingent of the final payment of $2,500,000, were not collected. As a result, management believes the Company is not entitled to make that payment based on the terms of the contract. Additionally, management believes the second payment of $250,000, due twelve months after closing, is also not due since management believes that payment was also tied to the collection of the same receivables. Therefore, management has adjusted the consideration due and the related goodwill amount to account for foregoing these payments. As a result, the eventual purchase price subsequent to the measurement period adjustments amounted to $250,000.

 

Cash deposit held in escrow:

 

$

250,000

Twelve months from date of closing:

 

 

250,000

Should certain accounts receivable be collected as described in the purchase agreement:

 

 

2,500,000

Initial purchase price:

 

 

3,000,000

Measurement period adjustments:

 

 

(2,750,000)

Adjusted purchase price:

 

$

250,000

 

The purchase price for the acquisition has been allocated to the tangible assets acquired and liabilities assumed based upon their estimated fair values as of the Closing Date. There were no identifiable intangible assets. The excess of the purchase price over the estimated fair value of the tangible acquired and liabilities assumed has been recorded as goodwill

 

Fair values of assets acquired, and liabilities assumed, net of measurement period adjustments of $2,750,000:

 

Customer relationships

 

$

10,321,000

Goodwill

 

 

1,610,261

Tradenames

 

 

1,455,000

Goodwill and identifiable intangible assets acquired

 

 

13,386,261

Cash

 

 

1,421,875

Accounts receivable

 

 

61,480,985

Prepaid expenses and other current assets

 

 

1,902,492

Accounts payable and accrued expenses

 

 

(75,041,613)

Due to related parties

 

 

(2,900,000)

Net working capital deficit assumed

 

 

(2,900,000)

Purchase price

 

$

250,000

 

The fair value of the acquired accounts receivable above approximates the carrying value of accounts receivable due to the short-term nature of the expected timeframe to collect amounts due to the Company and the contractual cash flows, which are expected to be collected related to these receivables.

 

Acquisition related expenses were expensed as incurred. The results of operations are included in the consolidated financial statements of the Company from the date of acquisition.

 

 

 

 

 


F-49


 

7.GOODWILL AND INTANGIBLE ASSETS 

 

As of December 31, 2023, the Company has the following amounts related to goodwill and intangible assets:

 

 

Goodwill

 

Customer

relationships

 

Tradenames

 

Total

Cost

 

 

 

 

 

 

 

 

 

 

 

Balances at January 1, 2023

$

---

 

$

---

 

$

---

 

$

---

Acquisitions

 

1,610,261

 

 

10,321,000

 

 

1,455,000

 

 

13,386,261

Balances at December 31, 2023

$

1,610,261

 

$

10,321,000

 

$

1,455,000

 

$

13,386,261

 

 

 

 

 

 

 

 

 

 

 

 

Accumulated Amortization

 

 

 

 

 

 

 

 

 

 

 

Balances at January 1, 2023

$

---

 

$

---

 

$

---

 

$

---

Amortization

 

---

 

 

1,032,000

 

 

97,000

 

 

1,129,100

Balances at December 31, 2023

$

1,610,261

 

$

1,032,000

 

$

97,000

 

$

1,129,100

Carrying amounts at January 1, 2023

$

---

 

$

---

 

$

---

 

$

---

Carrying amounts at December 31, 2023

$

1,610,261

 

$

9,288,900

 

$

1,358,000

 

$

12,257,161

 

The Company’s estimated useful lives for its intangible assets is as follows:

 

 

 

Useful lives

Goodwill

 

Annual impairment test

Customer relationships

 

10

Tradenames

 

15

 

Amortization expense for the year ended December 31, 2023, totaled $1,129,100. The following table represents the total estimated amortization of intangible assets for the five succeeding years and thereafter:

 

For the Years Ending

December 31,

 

Estimated

Amortization

2024

 

1,129,100

2025

 

1,129,100

2026

 

1,129,100

2027

 

1,129,100

2028

 

1,129,100

Thereafter

 

5,001,400

Total

 

10,646,900

 

8.ACCRUED EXPENSES 

 

Accrued expenses consists of the following at December 31, 2023:

 

Accrued telecommunication costs

 

$

22,253,616

Other accrued expenses

 

 

1,058,075

 

 

$

23,311,691

 

9.INCOME TAXES 

 

The provision for income taxes is computed using the asset and liability method, under which deferred tax assets and liabilities are recognized for the expected future tax consequences of temporary differences between the financial reporting and tax bases of assets and liabilities and for operating losses and tax credit carryforwards. Deferred tax assets and liabilities are measured using the currently enacted tax rates that apply to taxable income in effect for the years in which those tax assets and liabilities are expected to be realized or settled. The Company records a valuation allowance to reduce deferred tax assets to the amount that is believed more likely than not to be realized.

 

Uncertain tax positions are recognized only when the Company believes it is more likely than not that the tax position will be upheld on examination by the taxing authorities based on the merits of the position. The Company has no material unrecognized tax benefits and no adjustments to its consolidated financial position, results of operations or cash flows were required as of December 31, 2023.

The Company’s tax return for the year ended December 31, 2023 remains subject to examination by federal and state tax jurisdictions. No income tax returns are currently under examination by taxing authorities. The Company recognizes interest and penalties, if any,


F-50


related to uncertain tax positions in income tax expense. The Company did not have any accrued interest or penalties associated with uncertain tax positions as of December 31, 2023.

 

The federal and state income tax provision (benefit) is summarized as follows:

 

 

2023

 

 

Federal:

$

437,765

Current

 

(42,738)

Deferred

 

385,027

 

 

 

State:

 

90,576

Current

 

(8,843)

Deferred

 

81,733

 

 

 

Change in valuation allowance of deferred tax assets

 

51,580

Income tax

$

528,341

 

No benefit for income taxes has been recorded due to the uncertainty of the realization of any tax assets. At December 31, 2023, the Company had approximately $8,200 of net operating losses.

 

The components of the Company’s deferred tax assets are as follows:

 

 

2023

Deferred income tax assets:

 

Related party interest expense

$

95,855

Allowance for bad debts

 

24,148

Amortization

 

(27,208)

Net operating losses

 

1,726,600

 

 

1,819,395

 

 

 

Valuation allowance of deferred tax assets

 

(1,819,395)

Net deferred tax asset

$

---

 

A reconciliation of the provision for income taxes with amounts determined by applying the statutory U.S. federal income tax rate to income before income taxes is as follows:

 

 

2023

 

 

Computed tax at the federal rate of 21%

$

390,878

State taxes, net of federal benefit

 

80,875

Related party interest expenses

 

95,855

Allowance for bad debts

 

24,148

Amortization

 

(27,208)

Operating loss carryforwards

 

(41,215)

Permanent differences

 

5,008

Provision for income taxes

$

528,341

Effective income tax rate

 

25.35%

 

At December 31, 2023, the Company has available unused net operating losses and investment tax credits carryforwards that may be applied against future taxable income and that expire as follows:

 

Year of Expiration

 

Net Operating Loss

Carryforwards

Indefinite

 

$

(8,225)

 


F-51


 

10.COMMITMENTS AND CONTINGENCIES 

 

Operating Leases

 

The Company leases office space in Miami Beach, Florida under a one-year operating lease through March 2024. The lease calls for monthly lease payments of approximately $350.

 

For the year ended December 31, 2023, total rent expense for the Company totaled approximately $3,000.

 

Management believes IFRS 16 did not have a material impact on the Company’s operations due the Company not having any material leases.

 

Litigation

 

In the ordinary course of business, the Company may become a party to various claims, legal actions and complaints. In the opinion of management, there were no matters that would have a material adverse effect on the consolidated financial condition of the Company as of December 31, 2023.

 

11.COMMON STOCK 

 

As of December 31, 2023, the Company has authorized and issued 100 common stock shares with a par value of $1.00.

 

12.POST REPORTING DATE EVENTS 

 

No post reporting date events have occurred between the reporting date and the date of authorization of these consolidated financial statements, which would require adjusting the consolidated financial statements.

 

13.AUTHORIZATION OF FINANCIAL STATEMENTS 

 

For the year ended December 31, 2023, the consolidated financial statements of the Company were approved by Daniel Contreras, Chief Executive Officer, on March 18, 2024.

 

14.SUBSEQUENT EVENT 

 

The Company has evaluated subsequent events through March 18, 2024, the date these consolidated financial statements were available to be issued.

 

During February 2024, in an effort to streamline operations and better serve its customer base, Phonetime, Inc. transferred substantially all of its customers contracts to Mexedia, Inc. and to Mexedia, Ltd. (also a related entity through common ownership).

 

 

 

 

 

 

 

 

 


F-52


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF FINANCIAL POSITION

AS AT JUNE 30, 2024

 

 

 

June 30, 2024

 

December 31, 2023

 

 

 

 

 

 

 

Assets

 

 

 

 

 

 

Non-current assets

 

 

 

 

 

 

Property, plant and equipment

 

$

52,547

 

$

57,664

Goodwill

 

 

-

 

 

-

Other intangible assets

 

 

75,000

 

 

75,000

Investments in associates

 

 

-

 

 

-

Other non-current assets

 

 

9,752

 

 

9,751

Deferred taxes

 

 

-

 

 

-

 

 

 

137,299

 

 

142,415

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

Inventories

 

 

-

 

 

-

Trade receivables

 

 

39,552,279

 

 

40,702,777

Short-term loans

 

 

12,407,443

 

 

13,715,040

Taxes and other current assets

 

 

1,982,837

 

 

558,452

Cash and cash equivalents

 

 

82,067

 

 

98,617

Accruals

 

 

82,904

 

 

93,965

 

 

 

54,107,530

 

 

55,168,851

Total assets

 

$

54,244,829

 

$

55,311,266

 

 

 

 

 

 

 

Equity and liabilities

 

 

 

 

 

 

Equity

 

$

 

 

$

 

Share capital

 

 

1,000

 

 

1,000

Other reserves

 

 

2,000,000

 

 

2,000,000

Translation difference

 

 

-

 

 

-

Retained earnings

 

 

(1,440,668)

 

 

(1,575,264)

Net profit (loss) for the financial period

 

 

(2,428,709)

 

 

1,585,133

Equity attributable to equity owners of the Group

 

 

(1,868,377)

 

 

2,010,869

Minority interests

 

 

-

 

 

-

 

 

 

(1,868,377)

 

 

2,010,869

 

 

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

 

Long-term borrowings

 

 

-

 

 

-

Financial debt on repurchase of minority interests

 

 

-

 

 

-

Deferred tax liabilities

 

 

-

 

 

-

Retirement benefits obligations

 

 

-

 

 

-

Provisions for other liabilities

 

 

12,000

 

 

12,000

Total non-current liabilities

 

 

12,000

 

 

12,000

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

Short-term borrowings

 

 

41,791,319

 

 

41,821,898

Trade payables

 

 

9,584,136

 

 

7,488,264

Taxes payable

 

 

15,162

 

 

204,042

Other current liabilities

 

 

4,710,589

 

 

3,774,193

Accruals

 

 

-

 

 

-

Total current liabilities

 

 

56,101,206

 

 

53,288,397

Total equity and liabilities

 

$

54,244,829

 

$

55,311,266

 

 

The accompanying notes are an integral part of these unaudited financial statements.


F-53


MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE SIX MONTHS ENDED JUNE 30, 2024

 

 

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

Revenue

 

$

19,290,476

 

$

39,768,401

Cost of sales

 

 

(17,729,909)

 

 

(35,091,883)

Gross profit

 

 

1,560,567

 

 

4,676,519

 

 

 

 

 

 

 

General and administration

 

 

(630,898)

 

 

(1,596,106)

Other income

 

 

-

 

 

-

Other expenses

 

 

(40,757)

 

 

(39,255)

Depreciation and amortization

 

 

(5,117)

 

 

(82,029)

Operating profit (loss)

 

 

883,795

 

 

2,959,129

 

 

 

 

 

 

 

Finance income (costs)

 

 

(3,100,749)

 

 

(1,786,459)

Other non-operating income

 

 

80,812

 

 

3,466

Other non-operating expenses

 

 

(292,567)

 

 

(99,042)

Profit (loss) before taxation

 

 

(2,428,709)

 

 

1,077,093

 

 

 

 

 

 

 

Income taxes

 

 

-

 

 

(134,637)

Net profit (loss) for the financial period

 

$

(2,428,709)

 

$

942,456

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.


F-54


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF CHANGES IN EQUITY

FOR THE SIX MONTHS ENDED JUNE 30, 2024

 

 

Notes

 

Share

Capital

 

Revaluation

Reserve

 

Profit and

Loss Reserves

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2023

 

 

$

1,000

 

$

2,000,000

 

$

5,263,968

 

$

7,264,968

Net profit (loss)

 

 

 

-

 

 

-

 

 

942,456

 

 

942,456

Balance at 30 June 2023

 

 

$

1,000

 

$

2,000,000

 

$

6,206,424

 

$

8,207,424

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2024

 

 

$

1,000

 

$

2,000,000

 

$

11,431,955

 

$

3,432,955

Net profit (loss)

 

 

 

-

 

 

-

 

 

(2,428,709)

 

 

(2,428,709)

Balance at 30 June 2024

 

 

$

1,000

 

$

2,000,000

 

$

9,003,246

 

$

1,004,246

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.


F-55


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF CASH FLOWS

FOR THE SIX MONTHS ENDED JUNE 30, 2024

 

 

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

 

A) Cash flows from current activities

 

 

 

 

 

 

Profit (loss) for the period

 

$

(2,428,709)

 

$

942,456

Income tax

 

 

-

 

 

134,637

Payable (receivable) interest

 

 

3,100,749

 

 

1,786,459

1) Profit (loss) for the year before income tax, interest, dividends and capital gains/losses from convenances

 

 

672,040

 

 

2,863,552

Adjustments to non monetary items that were not offset in the net working capital

 

 

 

 

 

-

Provisions

 

 

-

 

 

(3,000)

Other non-monetary items

 

 

67,298

 

 

134,587

Fixed asset depreciation/amortisation

 

 

5,117

 

 

82,029

Total adjustments for non-monetary items that were not offset in the net working capital

 

 

72,415

 

 

213,616

2) Cash flow before changing net working capital

 

 

744,455

 

 

3,077,168

Changes to the net working capital

 

 

 

 

 

 

Decrease/(increase) in trade receivables

 

 

(6,278,394)

 

 

(9,360,222)

Increase/(decrease) in trade payables

 

 

7,017,724

 

 

(1,664,151)

Decrease/(increase) from prepayments and accrued income

 

 

483,872

 

 

615,378

Increase/(decrease) from accruals and deferred income

 

 

-

 

 

-

Other decreases/(other increases) in net working capital

 

 

1,693,985

 

 

(4,612,428)

Total changes to net working capital

 

 

2,917,187

 

 

(15,021,423)

3) Cash flow after changes to net working capital

 

 

3,661,642

 

 

(11,944,255)

Other adjustments

 

 

 

 

 

 

Interest received/(paid)

 

 

(46)

 

 

(1,331,192)

(Var of reserves)

 

 

 

 

 

 

Total other adjustments

 

 

(46)

 

 

(1,331,192)

Cash flow from current activities (A)

 

 

3,661,596

 

 

(13,275,447)

B) Cash flows from investments

 

 

 

 

 

 

Tangible fixed assets

 

 

 

 

 

 

(Investments)

 

 

10,233

 

 

10,234

Intangible fixed assets

 

 

 

 

 

 

(Investments)

 

 

-

 

 

(75,000)

Financial fixed assets

 

 

 

 

 

 

(Investments)

 

 

-

 

 

-

Cash flows from investments (B)

 

 

10,233

 

 

(64,766)

C) Cash flows from financing activities

 

 

 

 

 

 

Loan capital

 

 

 

 

 

 

New loans

 

 

(2,018,761)

 

 

14,260,574

Equity

 

 

 

 

 

 

Capital increase payments

 

 

-

 

 

-

Cash flows from financing activities (C)

 

 

 

 

 

14,260,574

Increase (decrease) in liquid assets (A ± B ± C)

 

 

1,653,068

 

 

920,360

Liquid assets at the end of the year

 

 

 

 

 

 

Bank and post office deposits

 

 

79,922

 

 

918,215

Cash and valuables in hand

 

 

2,145

 

 

2,145

Total liquid assets at the end of the year

 

 

82,067

 

 

920,360

 

The accompanying notes are an integral part of these unaudited financial statements.


F-56


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE SIX MONTHS ENDED JUNE 30, 2024

 

1Accounting policies 

 

Company information

Mexedia Designated Activity Company is a limited company domiciled and incorporated in the Republic of Ireland. The registered office is 17 Clanwilliam Square, Grand Canal Quay, Dublin 2 and its company registration number is 601653.

 

1.1 Accounting convention

The financial statements are prepared in dollars; the functional currency of the company is euros. Monetary amounts in these financial statements are rounded to the nearest dollar.

 

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

 

1.2 Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.3 Turnover

Turnover is recognized at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

1.4 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognized at cost and are subsequently measured at cost less accumulated amortization and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognized separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

 

Amortization is recognized so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

 

Software

Over 15 years

Development costs

Over 8 years

 

1.5 Tangible fixed assets

 

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

 

Depreciation is recognized so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

 

Leasehold land and buildings

8 years

Fixtures and fittings

8 years

Computers

8 years


F-57


The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

 

1.6 Impairment of fixed assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each statement of financial position date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognized in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

 

1.7 Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

1.8 Financial instruments

Financial instruments are recognized in the company's statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or to realize the asset and settle the liability simultaneously.

 

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortized cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

 

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

 

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognized at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

 

1.9 Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognized as liabilities once they are no longer at the discretion of the company.

 

1.10 Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

 

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

 

Deferred tax

Deferred tax liabilities are generally recognized for all timing differences and deferred tax assets are recognized to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognized if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.


F-58


The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

 

1.11 Employee benefits

The costs of short-term employee benefits are recognized as a liability and an expense, unless those costs are required to be recognized as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognized in the period in which the employee’s services are received.

 

Termination benefits are recognized immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

 

1.12 Foreign exchange

Transactions in currencies other than euros are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

2Judgements and key sources of estimation uncertainty 

 

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognized in the financial statements.

 

Going Concern

The directors have prepared budgets and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.

 

Useful lives of Tangible Fixed Assets

Long-lived assets comprising primarily of property, plant and machinery and fixtures and fittings represent a significant portion of total assets. The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilization of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial year.

 

 

 

 


F-59


 

3Interest payable and similar expenses 

 

 

Six Months Ended June 30,

 

2024

 

2023

 

 

 

 

 

 

Finance interest

$

2,516,418

 

$

1,977,970

Other interest

 

4,735

 

 

15,903

 

$

2,521,153

 

$

1,993,872

 

4Debtors 

 

 

June 30, 2024

 

June 30, 2023

Amounts falling due with one year:

 

 

 

 

 

 

 

 

 

 

 

Trade debtors

$

42,991,609

 

$

40,040,852

Corporation tax recoverable

 

2,155,259

 

 

455,408

Amounts owed by group undertakings

 

13,035,264

 

 

10,799,952

Other debtors

 

13,486,351

 

 

1,406,286

Prepayments

 

682,925

 

 

2,867,501

 

$

72,351,408

 

$

55,569,999

 

5Creditors: amounts falling due within one year 

 

 

June 30, 2024

 

June 30, 2023

 

 

 

 

 

 

Trade creditors

$

8,532,680

 

$

3,088,035

Amounts owed to group undertakings

 

16,304

 

 

16,129

Corporation tax

 

0

 

 

0

VAT

 

2,628,310

 

 

0

PAYE and social security

 

4,758

 

 

3,134

Other creditors

 

48,149,823

 

 

45,259,245

Accruals

 

0

 

 

0

 

$

59,331,877

 

$

48,366,544

 

6Related party transactions 

 

Included in debtors are various balances owed to Mexedia DAC from connected parties, these may be summarized as follows:

 

Amounts due:

Heritage Ventures Limited (common director) – At 6/30/24: $3,949,855

Mexedia Inc (group company) - At 6/30/24: $5,702,588

 

Amounts owed:

Heritage Ventures Limited (common director) shares - At 6/30/24: $16,304

Heritage Ventures Limited (common director) security deposit - At 6/30/24: $3,260

Mexedia Spa (group company) - At 6/30/24: $5,091,840

 

7Subsequent events 

 

In October 2024, the company was acquired by Raadr, Inc., a U.S. publicly-traded corporation.

 

 

 

 

 

 

 


F-60


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF FINANCIAL POSITION

AS AT DECEMBER 31, 2023

 

 

Notes

 

2023

 

2022

 

 

 

 

 

 

 

 

Fixes assets

 

 

 

 

 

 

 

Intangible assets

9

 

$

1,712,500

 

$

1,827,083

Tangible assets

10

 

 

67,275

 

 

79,249

 

 

 

 

1,779,775

 

 

1,906,332

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

Debtors

11

 

 

54,722,747

 

 

38,028,150

Cash at bank and in hand

 

 

 

68,040

 

 

2,307,680

 

 

 

 

54,790,787

 

 

40,335,830

 

 

 

 

 

 

 

 

Creditors: amounts falling due within one year

12

 

 

(53,137,607)

 

 

(34,977,194)

 

 

 

 

 

 

 

 

Net current assets

 

 

 

1,653,180

 

 

5,358,636

 

 

 

 

 

 

 

 

Net assets

 

 

$

3,432,955

 

$

7,264,968

 

 

 

 

 

 

 

 

Capital and reserves

 

 

 

 

 

 

 

Called up share capital presented as equity

13

 

$

1,000

 

$

1,000

Revaluation reserve

14

 

 

2,000,000

 

 

2,000,000

Profit and loss reserves

15

 

 

1,431,955

 

 

5,263,968

 

 

 

 

 

 

 

 

Total equity

 

 

$

3,432,955

 

$

7,264,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.


F-61


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF COMPREHENSIVE INCOME

FOR THE YEAR ENDED DECEMBER 31, 2023

 

The income statement has been prepared on the basis that all operations are continuing operations.

 

 

Notes

 

2023

 

2022

 

 

 

 

 

 

 

 

Turnover

 

 

$

112,626,233

 

$

140,871,413

Cost of sales

 

 

 

(102,949,336)

 

 

(127,696,740)

 

 

 

 

 

 

 

 

Gross profit

 

 

 

9,676,897

 

 

13,714,673

 

 

 

 

 

 

 

 

Administrative expenses

 

 

 

(3,823,761)

 

 

(4,107,763)

Other operating income/(expenses)

 

 

 

170,798

 

 

(2,982)

 

 

 

 

 

 

 

 

Operating profit

3

 

 

6,023,934

 

 

9,063,928

 

 

 

 

 

 

 

 

Interest payable and similar expenses

6

 

 

(4,402,570)

 

 

(3,042,846)

 

 

 

 

 

 

 

 

Profit before taxation

 

 

 

1,621,364

 

 

6,021,082

 

 

 

 

 

 

$

 

Tax on profit

7

 

 

(190,055)

 

 

(757,759)

 

 

 

 

 

 

 

 

Profit for the financial year

 

 

$

1,431,309

 

$

5,263,323

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.


F-62


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF CHANGES IN EQUITY

FOR THE YEAR ENDED DECEMBER 31, 2023

 

 

Notes

 

Share

Capital

 

Revaluation

Reserve

 

Profit and

Loss Reserves

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 1 January 2022

 

 

$

1,000

 

$

2,000,000

 

$

2,915,946

 

$

4,916,946

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 31 December 2022:

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit and total comprehensive income

 

 

 

-

 

 

-

 

 

5,263,323

 

 

5,263,323

Dividends

8

 

 

-

 

 

-

 

 

(2,915,301)

 

 

(2,915,301)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2022

 

 

 

1,000

 

 

2,000,000

 

 

5,263,968

 

 

7,264,968

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year ended 31 December 2023:

 

 

 

 

 

 

 

 

 

 

 

 

 

Profit and total comprehensive income

 

 

 

-

 

 

-

 

 

1,431,309

 

 

1,431,309

Dividends

8

 

 

-

 

 

-

 

 

(5,263,322)

 

 

(5,263,322)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Balance at 31 December 2023

 

 

$

1,000

 

$

2,000,000

 

$

11,431,955

 

$

3,432,955

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.


F-63


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

UNAUDITED STATEMENT OF CASH FLOWS

FOR THE YEAR ENDED DECEMBER 31, 2023

 

 

Notes

 

2023

 

2022

 

 

 

 

 

 

 

 

Cash flows from operating activities

 

 

 

 

 

 

 

Cash generated from operations

19

 

$

8,474,652

 

$

3,121,505

Interest paid

 

 

 

(4,402,570)

 

 

(3,042,846)

Income taxes paid

 

 

 

(1,010,900)

 

 

(284,109)

 

 

 

 

 

 

 

 

Net cash inflow/(outflow) from operating activities

 

 

 

3,061,182

 

 

(205,450)

 

 

 

 

 

 

 

 

Investing activities

 

 

 

 

 

 

 

Purchase of intangible assets

 

 

 

(37,500)

 

 

(37,500)

Purchase of tangible fixed assets

 

 

 

-

 

 

(991)

Proceeds from disposal of subsidiaries

 

 

 

-

 

 

85

 

 

 

 

 

 

 

 

Net cash used in investing activities

 

 

 

(37,500)

 

 

5,358,636

 

 

 

 

 

 

 

 

Financing activities

 

 

 

 

 

 

 

Dividends paid

 

 

 

(5,263,322)

 

 

(2,915,301)

 

 

 

 

 

 

 

 

Net cash used in financing activities

 

 

 

(5,263,322)

 

 

(2,915,301)

 

 

 

 

 

 

 

 

Net decrease in cash and cash equivalents

 

 

 

(2,239,640)

 

 

(3,159,157)

 

 

 

 

 

 

 

 

Cash and cash equivalents at beginning of year

 

 

 

2,307,680

 

 

5,466,837

 

 

 

 

 

 

 

 

Cash and cash equivalents at end of year

 

 

$

68,040

 

$

2,307,680

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The accompanying notes are an integral part of these unaudited financial statements.


F-64


 

MEXEDIA DESIGNATED ACTIVITY COMPANY

 

NOTES TO THE UNAUDITED FINANCIAL STATEMENTS

FOR THE YEAR ENDED DECEMBER 31, 2023

 

1Accounting policies 

 

Company information

Mexedia Designated Activity Company is a limited company domiciled and incorporated in the Republic of Ireland. The registered office is 17 Clanwilliam Square, Grand Canal Quay, Dublin 2 and its company registration number is 601653.

 

1.1 Accounting convention

These financial statements have been prepared in accordance with FRS 102 “The Financial Reporting Standard applicable in the UK and Republic of Ireland” (“FRS 102”) and the requirements of the Companies Act 2014.

 

The financial statements are prepared in euros, which is the functional currency of the company. Monetary amounts in these financial statements are rounded to the nearest dollar.

 

The financial statements have been prepared under the historical cost convention. The principal accounting policies adopted are set out below.

 

1.2 Going concern

At the time of approving the financial statements, the directors have a reasonable expectation that the company has adequate resources to continue in operational existence for the foreseeable future. Thus the directors continue to adopt the going concern basis of accounting in preparing the financial statements.

 

1.3 Turnover

Turnover is recognized at the fair value of the consideration received or receivable for goods and services provided in the normal course of business, and is shown net of VAT and other sales related taxes. The fair value of consideration takes into account trade discounts, settlement discounts and volume rebates.

 

1.4 Intangible fixed assets other than goodwill

Intangible assets acquired separately from a business are recognized at cost and are subsequently measured at cost less accumulated amortization and accumulated impairment losses.

 

Intangible assets acquired on business combinations are recognized separately from goodwill at the acquisition date where it is probable that the expected future economic benefits that are attributable to the asset will flow to the entity and the fair value of the asset can be measured reliably; the intangible asset arises from contractual or other legal rights; and the intangible asset is separable from the entity.

 

Amortization is recognized so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

 

Software

Over 15 years

Development costs

Over 8 years

 

1.5 Tangible fixed assets

 

Tangible fixed assets are initially measured at cost and subsequently measured at cost or valuation, net of depreciation and any impairment losses.

 

Depreciation is recognized so as to write off the cost or valuation of assets less their residual values over their useful lives on the following bases:

 

Leasehold land and buildings

8 years

Fixtures and fittings

8 years

Computers

8 years


F-65


The gain or loss arising on the disposal of an asset is determined as the difference between the sale proceeds and the carrying value of the asset, and is credited or charged to profit or loss.

 

1.6 Impairment of fixed assets

Assets not measured at fair value are reviewed for any indication that the asset may be impaired at each statement of financial position date. If such indication exists, the recoverable amount of the asset, or the asset’s cash generating unit, is estimated and compared to the carrying amount. Where the carrying amount exceeds its recoverable amount, an impairment loss is recognized in profit or loss unless the asset is carried at a revalued amount where the impairment loss is a revaluation decrease.

 

1.7 Cash and cash equivalents

Cash and cash equivalents are basic financial assets and include cash in hand, deposits held at call with banks, other short-term liquid investments with original maturities of three months or less, and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities.

 

1.8 Financial instruments

The company has elected to apply the provisions of Section 11 ‘Basic Financial Instruments’ and Section 12 ‘Other Financial Instruments Issues’ of FRS 102 to all of its financial instruments.

 

Financial instruments are recognized in the company’s statement of financial position when the company becomes party to the contractual provisions of the instrument.

 

Financial assets and liabilities are offset, with the net amounts presented in the financial statements, when there is a legally enforceable right to set off the recognized amounts and there is an intention to settle on a net basis or to realise the asset and settle the liability simultaneously.

 

Basic financial assets

Basic financial assets, which include debtors and cash and bank balances, are initially measured at transaction price including transaction costs and are subsequently carried at amortized cost using the effective interest method unless the arrangement constitutes a financing transaction, where the transaction is measured at the present value of the future receipts discounted at a market rate of interest.

 

Classification of financial liabilities

Financial liabilities and equity instruments are classified according to the substance of the contractual arrangements entered into. An equity instrument is any contract that evidences a residual interest in the assets of the company after deducting all of its liabilities.

 

Basic financial liabilities

Basic financial liabilities, including creditors, bank loans, loans from fellow group companies and preference shares that are classified as debt, are initially recognized at transaction price unless the arrangement constitutes a financing transaction, where the debt instrument is measured at the present value of the future payments discounted at a market rate of interest.

 

1.9 Equity instruments

Equity instruments issued by the company are recorded at the proceeds received, net of transaction costs. Dividends payable on equity instruments are recognized as liabilities once they are no longer at the discretion of the company.

 

1.10 Taxation

The tax expense represents the sum of the tax currently payable and deferred tax.

 

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from net profit as reported in the income statement because it excludes items of income or expense that are taxable or deductible in other years and it further excludes items that are never taxable or deductible. The company’s liability for current tax is calculated using tax rates that have been enacted or substantively enacted by the reporting end date.

 

Deferred tax

Deferred tax liabilities are generally recognized for all timing differences and deferred tax assets are recognized to the extent that it is probable that they will be recovered against the reversal of deferred tax liabilities or other future taxable profits. Such assets and liabilities are not recognized if the timing difference arises from goodwill or from the initial recognition of other assets and liabilities in a transaction that affects neither the tax profit nor the accounting profit.


F-66


The carrying amount of deferred tax assets is reviewed at each reporting end date and reduced to the extent that it is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered. Deferred tax is calculated at the tax rates that are expected to apply in the period when the liability is settled or the asset is realized. Deferred tax is charged or credited in the income statement, except when it relates to items charged or credited directly to equity, in which case the deferred tax is also dealt with in equity. Deferred tax assets and liabilities are offset when the company has a legally enforceable right to offset current tax assets and liabilities and the deferred tax assets and liabilities relate to taxes levied by the same tax authority.

 

1.11 Employee benefits

The costs of short-term employee benefits are recognized as a liability and an expense, unless those costs are required to be recognized as part of the cost of stock or fixed assets.

 

The cost of any unused holiday entitlement is recognized in the period in which the employee’s services are received.

 

Termination benefits are recognized immediately as an expense when the company is demonstrably committed to terminate the employment of an employee or to provide termination benefits.

 

1.12 Foreign exchange

Transactions in currencies other than euros are recorded at the rates of exchange prevailing at the dates of the transactions. At each reporting end date, monetary assets and liabilities that are denominated in foreign currencies are retranslated at the rates prevailing on the reporting end date. Gains and losses arising on translation in the period are included in profit or loss.

 

2Judgements and key sources of estimation uncertainty 

 

In the application of the company’s accounting policies, the directors are required to make judgements, estimates and assumptions about the carrying amount of assets and liabilities that are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other factors that are considered to be relevant. Actual results may differ from these estimates.

 

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognized in the period in which the estimate is revised where the revision affects only that period, or in the period of the revision and future periods where the revision affects both current and future periods.

 

Critical judgements

The following judgements (apart from those involving estimates) have had the most significant effect on amounts recognized in the financial statements.

 

Going Concern

The directors have prepared budgets and cash flows for a period of at least twelve months from the date of the approval of the financial statements which demonstrate that there is no material uncertainty regarding the company’s ability to meet its liabilities as they fall due, and to continue as a going concern. On this basis the directors consider it appropriate to prepare the financial statements on a going concern basis. Accordingly, these financial statements do not include any adjustments to the carrying amounts and classification of assets and liabilities that may arise if the company was unable to continue as a going concern.

 

Useful lives of Tangible Fixed Assets

Long-lived assets comprising primarily of property, plant and machinery and fixtures and fittings represent a significant portion of total assets. The annual depreciation charge depends primarily on the estimated lives of each type of asset and, in certain circumstances, estimates of residual values. The directors regularly review these useful lives and change them if necessary to reflect current conditions. In determining these useful lives management consider technological change, patterns of consumption, physical condition and expected economic utilization of the assets. Changes in the useful lives can have a significant impact on the depreciation charge for the financial year.

 

 

 

 


F-67


3Operating profit 

 

 

2023

 

2022

Operating profit for the year is stated after charging:

 

 

 

 

 

 

 

 

 

 

 

Exchange losses

$

11,768

 

$

82,310

Fees payable to the company’s auditor for the audit of the company’s financial statements

 

22,765

 

 

19,950

Depreciation of owned tangible fixed assets

 

11,974

 

 

11,965

Amortization of intangible assets

$

152,083

 

$

152,084

 

4Employees 

 

The average monthly number of persons (including directors) employed by the company during the year was:

 

 

2023

Number

 

2022

Number

 

 

 

 

 

 

Directors

 

1

 

 

1

Other

 

2

 

 

2

Total

 

3

 

 

3

 

Their aggregate remuneration comprised:

 

 

2023

 

2022

 

 

 

 

 

 

Wages and salaries

$

145,691

 

$

160,851

Social security costs

 

26,943

 

 

18,352

 

$

172,634

 

$

179,203

 

5Directors’ Remuneration 

 

 

2023

 

2022

 

 

 

 

 

 

Remuneration for qualifying services

$

77,000

 

$

77,000

 

6Interest payable and similar expenses 

 

 

2023

 

2022

 

 

 

 

 

 

Finance interest

$

4,373,361

 

$

3,004,658

Other interest

 

29,209

 

 

38,188

 

$

4,402,570

 

$

3,042,846

 

 

 

 

 

 

 

 

 


F-68


7Taxation 

 

 

2023

 

2022

Current tax

 

 

 

 

 

Corporation tax on profits for the current period

$

190,055

 

$

757,759

 

 

2023

 

2022

 

 

 

 

 

 

Profit before taxation

$

1,621,364

 

$

6,021,082

 

 

 

 

 

 

Expected tax charge based on standard rate of corporation tax of 12.50% (2022: 12.50%)

$

202,671

 

$

752,635

Tax effect of expenses that are not deductible in determining taxable profit

 

3,651

 

 

18,899

Tax effect of income not taxable in determining taxable profit

 

(75)

 

 

(75)

Permanent capital allowances in excess of depreciation

 

(36,255)

 

 

(35,669)

Depreciation on assets not qualifying for tax allowances

 

3,565

 

 

1,496

Amortization on assets not qualifying for tax allowances

 

19,010

 

 

19,011

Other non-reversing timing differences

 

-

 

 

1,462

 

 

 

 

 

 

Taxation charge for the year

$

192,567

 

$

757,759

 

 

 

 

 

 

Taxation charge in the financial statements

$

190,055

 

$

757,759

 

 

 

 

 

 

Reconciliation - the current year tax charge does not reconcile to the above analysis. Please review figures in the database.

$

2,512

 

$

-

 

8Dividends 

 

 

2023

 

2022

 

 

 

 

 

 

Final paid/outstanding

$

5,263,322

 

$

2,915,301

 

9Intangible fixed assets 

 

 

Software

 

Development

Costs

 

Total

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

 

At 1 January 2023

$

2,000,000

 

$

187,500

 

$

2,187,500

Additions - internally developed

 

-

 

 

37,500

 

 

37,500

 

 

 

 

 

 

 

 

 

At 31 December 2023

 

2,000,000

 

 

225,000

 

 

2,225,000

 

 

 

 

 

 

 

 

 

Amortization and impairment

 

 

 

 

 

 

 

 

At 1 January 2023

 

266,667

 

 

93,750

 

 

360,417

Amortization charged for the year

 

133,333

 

 

18,750

 

 

152,083

 

 

 

 

 

 

 

 

 

At 31 December 2023

 

400,000

 

 

112,500

 

 

512,500

 

 

 

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

 

 

 

At 31 December 2023

 

1,600,000

 

 

112,500

 

 

1,712,500

 

 

 

 

 

 

 

 

 

At 31 December 2022

$

1,733,333

 

$

93,750

 

$

1,827,083

 


F-69


10Tangible fixed assets 

 

 

Leasehold

land and

buildings

 

Fixtures and

fittings

 

Computers

 

Total

 

 

 

 

 

 

 

 

 

 

 

 

Cost

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2023 and 31 December 2023

$

13,925

 

$

75,948

 

$

5,921

 

$

95,794

 

 

 

 

 

 

 

 

 

 

 

 

Depreciation

 

 

 

 

 

 

 

 

 

 

 

At 1 January 2023

 

2,573

 

 

13,023

 

 

949

 

 

16,545

Depreciation charged in the year

 

1,741

 

 

9,493

 

 

740

 

 

11,974

 

 

 

 

 

 

 

 

 

 

 

 

at 31 December 2023

 

4,314

 

 

22,516

 

 

1,689

 

 

28,519

 

 

 

 

 

 

 

 

 

 

 

 

Carrying amount

 

 

 

 

 

 

 

 

 

 

 

At 31 December 2023

 

9,611

 

 

53,432

 

 

4,232

 

 

67,275

 

 

 

 

 

 

 

 

 

 

 

 

At 31 December 2022

$

11,352

 

$

6,295

 

$

4,972

 

$

79,249

 

11Debtors 

 

 

2023

 

2022

Amounts falling due with one year:

 

 

 

 

 

 

 

 

 

 

 

Trade debtors

$

40,654,524

 

$

28,587,750

Corporation tax recoverable

 

159,572

 

 

-

Amounts owed by group undertakings

 

9,212,143

 

 

4,871,520

Other debtors

 

3,674,842

 

 

4,020,446

Prepayments

 

1,021,666

 

 

548,434

 

$

54,722,747

 

$

38,028,150

 

Amounts receivable from group companies are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.

 

12Creditors: amounts falling due within one year 

 

 

2023

 

2022

 

 

 

 

 

 

Trade creditors

$

7,488,256

 

$

3,897,599

Amounts owed to group undertakings

 

3,682,134

 

 

1,233,301

Corporation tax

 

-

 

 

661,273

VAT

 

-

 

 

22,568

PAYE and social security

 

8,374

 

 

12,119

Other creditors

 

41,891,469

 

 

29,150,424

Accruals

 

67,374

 

 

(90)

 

$

53,137,607

 

$

34,977,194

 

Amounts owed to group companies are unsecured, interest-free, have no fixed date of repayment and are repayable on demand.

 

Other creditors: Included in other creditors are loan balances which have been advanced to the company by Lenderwize Limited. The total outstanding at the year end to Lenderwize Limited was $41,791,319 (2022 - $29,048,069). Interest charged by Lenderwize Limited in the current year was $4,373,334 (2022 - $3,000,863).

 

 

 


F-70


13Share capital 

 

 

2023

Number

 

2022

Number

 

2023

 

2022

Ordinary share capital Authorized equity

Issued and fully paid

 

 

 

 

 

 

 

 

 

 

 

Ordinary shares of $1 each

 

1,000

 

 

1,000

 

$

1,000

 

$

1,000

 

14Revaluation reserve 

 

 

2023

 

2022

 

 

 

 

 

 

At the beginning and end of the year

$

2,000,000

 

$

2,000,000

 

15Profit and loss reserves 

 

 

2023

 

2022

 

 

 

 

 

 

At the beginning of the year

$

5,263,968

 

$

2,915,946

Profit for the year

 

1,431,309

 

 

5,263,323

Dividends declared and paid in the year/outstanding at year end

 

(5,263,322)

 

 

(2,915,301)

 

$

1,431,955

 

$

5,263,968

 

16Events after the reporting date 

 

There are no post balance sheet adjustments which require disclosure.

 

17Related party transactions 

 

Included in debtors are various balances owed to Mexedia DAC from connected parties, these may be summarized as follows:

 

Amounts due:

Heritage Ventures Limited (common director) - $4,039,855 (2022: $2,027,855)

Mexedia Inc (group company) - $5,172,288 (2022: $2,843,665)

 

Amounts owed:

Heritage Ventures Limited (common director) shares - $15,000 (2022: $15,000)

Heritage Ventures Limited (common director) security deposit - $3,000 (2022: $3,000)

Mexedia Spa (group company) - $3,644,134 (2022: $1,215,301)

 

Trade debtor intercompany balances:

Mexedia Inc (group company) - $558,002 (2022: $206,377)

Mexedia Spa (group company) - $12,492 (2022: $Nil)

Opt1mize Technologies Limited (common control) - $591,826 (2022: $584,763)

 

18Ultimate controlling party 

 

Mexedia Limited is a wholly owned subsidiary of Mexedia SPA S.B, an Italian company. The majority shareholder in Mexedia SPA S.B, via a holding company structure, is Mr Orlando Taddeo who may be regarded as the ultimate controlling party of Mexedia Limited.

 

 

 

 

 

 


F-71


19Cash generated from operations 

 

 

2023

 

2022

 

 

 

 

 

 

Profit for the year after tax

$

1,431,309

 

$

5,263,323

 

 

 

 

 

 

Adjustments for:

 

 

 

 

 

Taxation charged

 

190,055

 

 

757,759

Finance costs

 

4,402,570

 

 

3,042,846

Amortization and impairment of intangible assets

 

152,083

 

 

152,084

Depreciation and impairment of tangible fixed assets

 

11,974

 

 

11,965

 

 

 

 

 

 

Movements in working capital:

 

 

 

 

 

Increase in debtors

 

(16,535,025)

 

 

(13,733,710)

Increase in creditors

 

18,821,686

 

 

7,627,238

 

 

 

 

 

 

Cash generated from operations

$

8,474,652

 

$

3,121,505

 

20Analysis of changes in net funds 

 

 

1 January

2023

 

Cash flows

 

31 December

2023

 

 

 

 

 

 

 

 

 

Cash at bank and in hand

$

2,307,680

 

$

(2,239,640)

 

$

68,040

 

21Approval of financial statements 

 

The directors approved the financial statements on 11 March 2024.

 

 

 

 


F-72


 

PART III EXHIBITS

 

Exhibit No.

Description of Exhibit

 

 

2. Charter and Bylaws

2.1*

Articles of Incorporation

2.2*

Certificate of Change (Increase Authorized) dated June 19, 2018

2.3*

Certificate of Designation (Creation of Series A Preferred) dated January 3, 2013

2.4*

Certificate of Amendment (Name Change to Pitooey!, Inc.) dated January 18, 2013

2.5*

Certificate of Amendment (Name Change to Raadr, Inc.) dated June 29, 2015

2.6*

Certificate of Designation (Creation of Series E Preferred) dated January 27, 2016

2.7*

Certificate of Amendment (Increase in Authorized) dated March 21, 2016

2.8*

Certificate of Amendment (Increase in Authorized) dated May 9, 2016

2.9*

Certificate of Amendment (Increase in Authorized) dated May 3, 2017

2.10*

Certificate of Amendment (Increase in Authorized) dated August 4, 2017

2.10.1*

Certificate of Amendment (Increase in Authorized) dated May 6, 2022

2.10.2*

Certificate of Amendment (Reverse Split: 1-for-1,000) dated August 31, 2022

2.10.3*

Certificate of Amendment (Reverse Split: 1-for-100) dated September 28, 2022

2.10.4+

Certificate of Amendment (Increase in Authorized) dated December 1, 2022

2.10.5+

Certificate of Designation (Creation of Series F Preferred) dated October 8, 2024

2.11*

Bylaws

 

 

3. Instruments Defining the Rights of Securityholders

3.1*

Promissory Note issued by the Company to JanBella Group, LLC and Guaranty between JanBella Group, LLC and Jacob DiMartino

3.2+

Secured Promissory Note dated October 8, 2024, principal amount $540,000.00, in favor of JanBella Group, LLC

3.3+

Convertible Promissory Note dated November 15, 2024, $50,000 principal amount, issued in favor of Daniel Contreras

3.4+

Convertible Promissory Note dated November 15, 2024, $300,000 principal amount, issued in favor of Orlando Taddeo

3.5+

Convertible Promissory Note dated November 15, 2024, $200,000 principal amount, issued in favor of Daniel Gilcher

3.6+

Convertible Promissory Note dated November 15, 2024, $300,000 principal amount, issued in favor of Orlando Taddeo

3.7+

Convertible Promissory Note dated November 15, 2024, $200,000 principal amount, issued in favor of Daniel Gilcher

3.8+

Convertible Promissory Note dated July 15, 2024, $60,000 principal amount, issued in favor of Newlan Law Firm, PLLC

3.9+

Convertible Promissory Note dated July 15, 2024, $40,000 principal amount, issued in favor of Newlan Law Firm, PLLC

3.10+

Amendment No. 1 to the Promissory Note dated November 18, 2022, in favor of Boot Capital, LLC

3.11+

Second Amendment to Senior Secured Convertible Promissory Note dated July 29, 2021, in favor of Leonite Fund I, LP

3.12+

Convertible Promissory Note dated October 1, 2024, $25,000 principal amount, issued in favor of FirstFire Global Opportunity Fund, LLC

 

 

4. Subscription Agreement

4.1+

Form of Subscription Agreement

 

 


II-1


 

 

Exhibit No.

Description of Exhibit

 

 

6. Material Agreements

6.1*

Forbearance Agreement between the Company and Dean Richards

6.2*

Forbearance Agreement between the Company and Tina Upham

6.3*

Forbearance Agreement between the Company and Brenda Whitman

6.4+

Stock Cancellation Agreement between the Company and Dean Richards

6.5+

Stock Cancellation Agreement between the Company and Tina Upham

6.6+

Stock Cancellation Agreement between the Company and Brenda Whitman

6.7+

Redemption Agreement between the Company and JanBella Group, LLC

6.8+

Pledge Agreement between Mexedia S.p.A. S.B. and JanBella Group, LLC

6.9+

Guaranty of Mexedia S.p.A. S.B.

6.10+

Settlement Agreement between the Company and FirstFire Global Opportunities Fund, LLC

6.11+

Settlement Agreement between the Company and FirstFire Global Opportunities Fund, LLC

6.12+

Global Settlement Agreement between the Company and Leonite Fund I, LP

6.13+

Global Settlement Agreement between the Company and IBH Capital, LLC

6.14+

Settlement Agreement between the Company and GW Holdings Group, LLC

6.15+

Legal Services Agreement between the Company and Newlan Law Firm, PLLC

6.16+

Facility Agreement among Mexedia, DAC, Matchcom Telecommunication Inc. and Phonetime Inc., as Borrowers/Obligors, and Fasanara Securitisation S.A., Acting for and on Behalf of its Compartment H, as Lender

6.17+

Settlement Agreement between the Company and Boot Capital, LLC

 

 

7. Plan of acquisition, reorganization, arrangement, liquidation or succession

7.1+

Share Exchange Agreement among the Company, Mexedia, Inc. and Mexedia S.p.A. S.B.

7.1.1+

Amendment No. 1 to Share Exchange Agreement among the Company, Mexedia, Inc. and Mexedia S.p.A. S.B.

7.2+

Share Exchange Agreement among the Company, Mexedia DAC and Mexedia S.p.A. S.B.

7.2.1+

Amendment No. 1 to Share Exchange Agreement among the Company, Mexedia, DAC and Mexedia S.p.A. S.B.

 

 

11. Consents

11.1+

Consent of Newlan Law Firm, PLLC (see Exhibit 12.1)

 

 

 

 

12. Opinion re: Legality

12.1+

Opinion of Newlan Law Firm, PLLC

 

__________________________

+ Filed herewith.

* Incorporated by reference as indicated.

 

 

 

 

 

 

 

 

 

 

 

 

 


II-2


 

SIGNATURES

 

Pursuant to the requirements of Regulation A, the issuer certifies that it has reasonable grounds to believe that it meets all of the requirements for filing on Form 1-A and has duly caused this offering statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Miami Beach, State of Florida, on November 29, 2024.

 

 

RAADR, INC.

 

 

 

By:

/s/ Daniel Contreras

 

 

Daniel Contreras

 

 

Chief Executive Officer

 

This Offering Statement has been signed by the following persons in the capacities and on the dates indicated.

 

/s/ Daniel Contreras

 

 

Daniel Contreras

 

November 29, 2024

Chief Executive Officer (Principal

 

 

Executive Officer) and Director

 

 

 

/s/ Orlando Taddeo

 

 

Orlando Taddeo

 

November 29, 2024

President and Director

 

 

 

/s/ Daniel Gilcher

 

 

Daniel Gilcher

 

November 29, 2024

Chief Financial Officer (Principal Accounting Officer),

 

 

Secretary, Treasurer and Director

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


II-3

 

Picture 1 


 

RAADR,INC.

 

CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS AND LIMITATIONS

OF

SERIES F PREFERRED STOCK

 

PURSUANT TO SECTION 78.1955 OF THE NEVADA REVISED STATUTES

 

Pursuant to Section 78.1955 of the Nevada Revised Statutes, the undersigned does hereby certify, 011 behalf of Raadr, Inc., a Nevada corporation (the "Company''), that tbe following resolution was duly adopted by the Board of Directors of the Company.

 

WHEREAS, the Articles of Incorporation of the Company, as amended (the ''Articles of Incorporation''),authorize the issuance of up to 100,000,000 shares of preferred stock, par value $0.001 per share, of the Company (the "Preferred Stock") in one or more series, which Preferred Stock shall have such distinctive designation or title, voting powers or no voting powers, and such preferences, rights, qualifications, limitations or restrictions, as shall be stated in such resolution or resolutions providing for the issuance of such class or series of Preferred Stock as may be adopted from time to time by the Board prior to the issuance of any shares thereof; and

 

WHEREAS, it is the desire of the Board of Directors to establish and fix the number of shares to be included in a new series of Preferred Stock and the designation, rights, preferences, powers, restrictions and limitations of the shares of such new series.

 

NOV, THEREFORE, IT IS RESOLVED, that the Board of Directors does hereby provide for the issue of a series of Preferred Stock and does hereby in this Certificate of Designation (this "Certificate of Designation") establish and fix and herein state and express the designation, rights, preferences, powers, restrictions, and limitations of such series of Preferred Stock as follows:

 

TERMS OF SERIES F PREFERRED STOCK

 

Section 1. Designation, Amount and Par Value. The series of Preferred Stock shall be designated as Series F Preferred Stock (the "Series F Preferred Stock") and the number of shares so designated shall be Seventy-Five Thousand (75,000). Each share of the Series F Preferred Stock shall have a par value ofS0.001.

 

 

CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS

AND LIMITATIONS OF SERIES F PREFERRED STOCK

PAGEl

 

 

 


 

(a)Adjustment for Merger and Reorganization, etc. If there shall occur any reorganization, recapitalization. reclassification, consolldation or merger (a "Reorganization Event·'') involving the Company in which the Common Stock (but not the Series F Preferred Stock) is converted into or exchanged for securities, cash or other property, then each share of Series F Preferred Stock shall be deemed to have been converted into shares of the Common Stock at the Conversion Rate. 

 

Section 7. Protection Provisions. So long as any shares of Series F Preferred Stock are outstanding. the Company shall not, without first obtaining the majority written consent of the holders of Series F Preferred Stock, alter or change the rights, preferences or privileges of the Series F Preferred Stock so as to affect adversely the holders of Series F Preferred Stock.

 

Section 8. Waiver. Any of the rights, preferences or privileges of the holders of the Series F Preferred Stock may be waived by the affirmative consent or vote of the holders of at least a majority of the shares of Series F Preferred Stock then outstanding.

 

Section 9. No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series F Preferred Stock shall have no other rights, privileges or preferences with respect to the Series F Preferred Stock.

 

RESOLVED, FURTHER, that the president or any vice-president, and the secretary or any assistant secretary, of the Company be and they hereby are authorized and directed to prepare and file this Certificate of Designation of Preferences, Rights and Limitations in accordance with the foregoing resolution and the provisions of the Nevada Revised Statutes.

 

IN WITNESS WHEREOF, the undersigned has executed this Certificate of Designation this 8th day of October, 2024.

 

RAADR, INC.

 

 

By: /s/ Jacob DiMartino

Jacob DiMartino

Chief Executive Officer

 

 

 

 

 

 

 

CERTIFICATE OF DESIGNATION OF PREFERENCES, RIGHTS

ANO LIMITATIONS OF SERIKS F PREf'ERRE.I} STOCK

PACE3

 

 

NEITHER THE ISSUANCE NOR THE SALE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

SECURED PROMISSORY NOTE

 

Principal Amount: $540,000.00 Issue Date: October 8, 2024

 

Raadr, Inc., a Nevada corporation (“Maker”), promises to pay to JanBella Group, LLC (“Holder”) the principal sum of Five Hundred Forty Thousand Dollars ($540,000.00) (the “Principal Balance”), together with interest accrued thereon calculated at the rate of eight percent (8%) per annum (the “Interest”), all as set forth herein (the “Note”).  

 

The Principal Balance and accrued Interest shall be due and payable, as follows: 

 

(A)within three (3) business days from the end of each calendar month during which Maker shall have received proceeds (each a “Monthly Reg A Tranche”) under Maker’s next-filed Offering Statement on Form 1-A (the “Regulation A Offering”), Maker shall pay Holder an amount that equals forty percent (40%) of each Monthly Reg A Tranche amount that exceeds $100,000, with each such payment being applied first to accrued Interest and then to the Principal Balance of this Note, until such time as all accrued Interest and the Principal Balance shall have been paid in full; and 

 

(B)in any event, on or before October 8, 2025 (the “Maturity Date”). 

 

Following the date of payment in full of the Principal Balance and all accrued Interest thereon (the “Balance Date”), Maker further promises to pay to Holder up to an additional $1,260,000 as additional principal (the “Additional Principal”). In this regard, within three (3) business days from Maker’s receipt of a Monthly Reg A Tranche after the Balance Date, Maker shall pay Holder an amount that equals ten percent (10%) of each Monthly Reg A Tranche amount that exceeds $100,000, until such time as all of the Additional Principal has been paid. Further, and in addition to the provisions of the foregoing sentence, for a period of 18 months immediately following the Issue Date, within three (3) business days from Maker's receipt of any third-party funding (the “Sourced Funding”), whether in the from of debt and/or equity, Maker shall pay Holder an amount that equals ten percent (10%) of the Sourced Funding amount, until such time as all of the Additional Principal has been paid. Maker shall incur no penalty for its failing to pay the Addition Principal amount in full. 

 

Upon a default by Maker hereunder, the then-outstanding Principal Balance shall thereafter bear interest thereon at eighteen percent (18%) per annum (the “Default Rate”) until the past due amount, including interest at the Default Rate, shall have been paid in full. 

In the event any payment called for by this Note would result in the violation of applicable usury laws, then any amount paid in excess of the maximum amount on interest allowed by law shall be applied towards a reduction of the outstanding principal balance. 


SECURED PROMISSORY NOTE   |   PAGE 1


 

The obligations of this Note are secured by (a) that certain Pledge Agreement dated as of the Issue Date between Holder, as lender, and Mexedia S.p.A. S.B., as guarantor, and (b) that certain Guaranty dated as of the Issue Date among Holder, as lender, and Mexedia S.p.A. S.B., as guarantor. 

 

The occurrence of any one or more of the following events shall constitute a default under this Note: 

 

(a)failure of Maker to file the Regulation A Offering within twenty (20) days from the Issue Date of this Note; 

 

(b)failure of Maker to make any payment when due under this Note, with a grace period of two (2) business days; 

 

(c)the filing of any petition under federal bankruptcy law or any similar federal or state statute by or against Maker; 

 

(d)an application for the appointment of a receiver for, the making of a general assignment for the benefit of creditors by, or the insolvency of Maker; 

 

(e)the validity or enforceability of this Note is contested by Maker; or  

 

(f)Maker denies that it has any or any further liability or obligation hereunder. 

 

This Note is and shall be deemed to have been made and delivered in the State of North Carolina and in all respects shall be governed and construed in accordance with the laws of that State. 

 

This Note shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of North Carolina or in the federal courts located in the City of Charlotte, State of North Carolina. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with  


SECURED PROMISSORY NOTE   |   PAGE 2


this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

The word “Maker” shall include Maker’s representatives, successors and assigns and the word “Holder” shall include Holder’s representatives, successors and assigns. 

 

Maker and all endorsers of this Note hereby waive presentment for payment, demand for payment, notice of non-payment and dishonor, protest, and notice of protest; consent to any renewals, extensions and partial payments of this Note or the indebtedness for which it is given without notice to them, and consent that no such renewals, extensions or partial payments shall discharge any party hereto from liability hereon in whole or in part.  

 

If this Note shall be placed with an attorney for collection, Maker, endorsers and guarantors agree to pay all costs of collection, including reasonable attorneys’ fees which shall be added to the amount due under this Note and shall be recoverable with the amount due under this Note and shall be a lien on any collateral securing this Note. 

 

Maker acknowledges and agrees that sufficient consideration has passed to render this Note valid and enforceable and waives any claim based on inadequate consideration. 

 

IN WITNESS WHEREOF, Maker has executed this Note as of the date first above set forth.  

 

RAADR, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 


SECURED PROMISSORY NOTE   |   PAGE 3


THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

RAADR, INC.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of Daniel Contreras, or registered assigns (the “Holder”), the sum of $50,000.00 together with any interest as set forth herein, on November 15, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights

 

1.1Conversion Right. Upon an Event of Default that shall not have been cured, the Holder shall have the right from time to time, and at any time during the period beginning on the Issue Date to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means,  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 1



with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved four and one half times the number of shares that would be issuable upon full conversion of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect) (based on the respective Conversion Price of the Note (as defined in Section 1.2) in effect from time to time, initially 1,000,000 shares) (the “Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note. 

 

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 2



(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.  

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 3



(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]  

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS 

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT 

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 4



of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note. 

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 5



Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.  

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:Raadr, Inc. 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

Attention: Chief Financial Officer

E-mail: dgilcher@mexedia.com

 

If to the Holder:Daniel Contreras 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

E-mail: dcontreras@mexedia.com

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 


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4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada . The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on November 15, 2024. 

 

RAADR, INC. 

 

 

By: /s/ Daniel Contreras 

Daniel Contreras 

Chief Executive Officer 

 

 

 

 

 

 


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EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Raadr, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of November 15, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

RAADR, INC.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of Orlando Taddeo, or registered assigns (the “Holder”), the sum of $300,000.00 together with any interest as set forth herein, on November 15, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights

 

1.1Conversion Right. Upon an Event of Default that shall not have been cured, the Holder shall have the right from time to time, and at any time during the period beginning on the Issue Date to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means,  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 1



with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved four and one half times the number of shares that would be issuable upon full conversion of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect) (based on the respective Conversion Price of the Note (as defined in Section 1.2) in effect from time to time, initially 1,000,000 shares) (the “Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note. 

 

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  


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(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.  

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 3



(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]  

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion  


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of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note. 

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  


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Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.  

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:Raadr, Inc. 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

Attention: Chief Financial Officer

E-mail: dgilcher@mexedia.com

 

If to the Holder:Orlando Taddeo 

c/o 1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

E-mail: ottadeo@mexedia.com

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 


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4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada . The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on November 15, 2024. 

 

RAADR, INC. 

 

 

By: /s/ Daniel Contreras 

Daniel Contreras 

Chief Executive Officer 

 

 

 

 

 

 

 


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EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Raadr, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of November 15, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

RAADR, INC.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of OTUS, LLC, or registered assigns (the “Holder”), the sum of $200,000.00 together with any interest as set forth herein, on November 15, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights

 

1.1Conversion Right. Upon an Event of Default that shall not have been cured, the Holder shall have the right from time to time, and at any time during the period beginning on the Issue Date to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means,  


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with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved four and one half times the number of shares that would be issuable upon full conversion of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect) (based on the respective Conversion Price of the Note (as defined in Section 1.2) in effect from time to time, initially 1,000,000 shares) (the “Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note. 

 

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  


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(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.  

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  


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(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]  

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion  


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of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note. 

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 5



Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.  

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:Raadr, Inc. 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

Attention: Chief Financial Officer

E-mail: dgilcher@mexedia.com

 

If to the Holder:OTUS, LLC 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

E-mail: dgilcher@mexedia.com

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 


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4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada . The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on November 15, 2024. 

 

RAADR, INC. 

 

 

By: /s/ Daniel Contreras 

Daniel Contreras 

Chief Executive Officer 

 

 

 

 

 


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EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Raadr, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of November 15, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

RAADR, INC.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of Orlando Taddeo, or registered assigns (the “Holder”), the sum of $300,000.00 together with any interest as set forth herein, on November 15, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights

 

1.1Conversion Right. Upon an Event of Default that shall not have been cured, the Holder shall have the right from time to time, and at any time during the period beginning on the Issue Date to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means,  


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with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved four and one half times the number of shares that would be issuable upon full conversion of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect) (based on the respective Conversion Price of the Note (as defined in Section 1.2) in effect from time to time, initially 1,000,000 shares) (the “Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note. 

 

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  


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(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.  

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  


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(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]  

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion  


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of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note. 

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  


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Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.  

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:Raadr, Inc. 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

Attention: Chief Financial Officer

E-mail: dgilcher@mexedia.com

 

If to the Holder:Orlando Taddeo 

c/o 1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

E-mail: otaddeo@mexedia.com

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 


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4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada . The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on November 15, 2024. 

 

RAADR, INC. 

 

 

By: /s/ Daniel Contreras 

Daniel Contreras 

Chief Executive Officer 

 

 

 

 

 


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EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Raadr, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of November 15, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

RAADR, INC.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of OTUS, LLC, or registered assigns (the “Holder”), the sum of $200,000.00 together with any interest as set forth herein, on November 15, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights 

 

1.1Conversion Right. Upon an Event of Default that shall not have been cured, the Holder shall have the right from time to time, and at any time during the period beginning on the Issue Date to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means,  


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with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved four and one half times the number of shares that would be issuable upon full conversion of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect) (based on the respective Conversion Price of the Note (as defined in Section 1.2) in effect from time to time, initially 1,000,000 shares) (the “Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note. 

 

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  


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(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.  

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  


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(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]  

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion  


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of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder.

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note. 

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  


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Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.  

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:Raadr, Inc. 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

Attention: Chief Financial Officer

E-mail: dgilcher@mexedia.com

 

If to the Holder:Otus, LLC 

1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139

E-mail: dgilcher@mexedia.com

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 


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4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada . The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on November 15, 2024. 

 

RAADR, INC. 

 

 

By: /s/ Daniel Contreras 

Daniel Contreras 

Chief Executive Officer 

 

 

 

 

 


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EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Raadr, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of November 15, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 

 

 

 

 

 

 

 


8% CONVERTIBLE PROMISSORY NOTE   |   PAGE 8


THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

RAADR, INC.

 

5% CONVERTIBLE PROMISSORY NOTE

 

Principal Amount: $60,000.00Issuance Date: July 15, 2024 

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (the “Company”), promises to pay to NLF Support Services, LLC (“Holder”), the Principal Amount, together with interest accrued thereon, as hereinafter provided. 

 

Certain capitalized terms used herein are defined in Section 20. 

 

1.Interest. 

 

(a)Rate. Interest shall accrue on the Principal Amount at the rate of five percent (5%) per annum (“Interest”) commencing as of the Issuance Date and continuing through the date on which this Note automatically converts as provided in Section 2 below or the Company otherwise fully satisfies all of its obligations under this Note. All computations of Interest hereunder shall be made on the basis of a 360-day year of twelve 30-day months. 

 

(b)Default Rate. If all or a portion of the Principal Amount or Interest shall not be paid when due (whether at its stated maturity, by acceleration or otherwise), the Company hereby promises to pay, on demand, interest on such overdue amount from and including the due date to, but excluding, the date such amount is paid in full, at twelve percent (12%) per annum until the date such overdue amount is paid in full. 

 

2.Maturity; Conversion. This Note shall mature on the earlier of the Qualification Date or July 31, 2025, as provided in this Section 2. 

 

(a)Conversion. 

 

(i)Automatic Conversion on Qualification Date. On the Qualification Date, the Outstanding Balance shall, without any action on the part of Holder, automatically convert into a number of Conversion Shares calculated by dividing the Outstanding Balance by the Conversion Rate (“Automatic Conversion”). Upon issuance as provided in this Section 2(a)(i), the Conversion Shares shall be fully paid and non-assessable shares of the Common Stock of the Company. As of the Qualification Date, this Note shall be of no further force or effect and the Company’s only obligation to Holder shall be to deliver a certificate evidencing the Conversion Shares. 

 

(ii)Mechanics of Conversion. 

 

(1)Upon the Qualification Date, the Company shall provide Holder with written notice thereof and within two business days thereafter, Holder shall surrender this Note to the Company in the manner provided in such notice. Upon conversion and surrender of this Note, Holder hereby agrees to execute and deliver to the Company a subscription agreement (the “Subscription Agreement”), in the form included in the Offering Statement on Form 1-A that embodies the Regulation A Offering. 

 

(2)The Company shall, as soon as practicable after the surrender of this Note and delivery of the Subscription Agreement as provided in Section 2(a)(ii)(1) above, issue and deliver to Holder, a certified book statement representing the number of Conversion Shares to which Holder shall be entitled. The Company shall not be obligated to issue any certificate or other instrument evidencing any Conversion Shares, unless this Note is either delivered to the Company or Holder notifies the Company that this Note has been lost, stolen or destroyed and executes an agreement reasonably satisfactory to the Company to indemnify the Company from any loss incurred by the Company in connection therewith. 

 

(iii)No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. No fractional shares of equity securities shall be issued upon conversion of this Note into Conversion Shares. In lieu of fractional shares to which Holder would otherwise be entitled, the Company shall round up any fractional share to the next whole  


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 1



share.

 

(iv)Cancellation of Note. Upon the conversion of this Note pursuant to this Section 2(a), this Note shall be canceled and of no further force or effect and, Holder’s only remedy shall be to receive a certificate representing the Conversion Shares. 

 

(b)Payment on Maturity. Unless sooner converted in accordance with Section 2(a), the Outstanding Balance shall become due and payable by the Company on July 31, 2025 (the “Maturity Date”). The Company shall pay to Holder the Outstanding Balance without deduction by reason of any set-off, defense or counterclaim in immediately available funds in lawful currency of the United States of America at Holder’s address on file with the Company or at such other place as Holder shall have designated to the Company in writing. Payment shall be credited first to any costs, expenses or charges then payable to Holder, then to accrued but unpaid interest then due and payable, and then to principal. 

 

(c)Fundamental Transaction. If, prior to an Automatic Conversion or payment of the Outstanding Balance upon Maturity, the Company proposes to enter into or become a party to a Fundamental Transaction, then the Company shall transmit to Holder a Fundamental Transaction Notice not less than twenty (20) days prior to the closing date of such proposed Fundamental Transaction and Holder shall have the option to cause the Successor Entity to assume this Note as provided in Subsection 2(c)(i) or to convert this Note into shares of Common Stock as provided in Subsection 2(c)(ii) below. Holder shall communicate its election with respect to this Note not less than ten (10) days prior to the date of the Fundamental Transaction in the manner directed in the Fundamental Transaction Notice (the “Election Date”). If Holder fails to communicate its election to the Company prior to the Election Date, this Note automatically shall be assumed by the Successor Entity as provided in Section 2(c)(i) below. 

 

(i)Assumption by Successor Entity upon Fundamental Transaction. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Note in accordance with the provisions of this Section 2(c)(i) pursuant to written agreements in form and substance reasonably satisfactory to Holder and approved by Holder (without unreasonable delay) prior to such Fundamental Transaction, including an agreement to deliver to Holder a promissory note made by the Successor Entity, which includes terms, provisions and conditions similar to the terms, provisions and conditions of this Note in all material respects, and shall provide for a principal amount and interest rate equal to the principal amount and the interest rate of this Note (the “New Note”), except that the New Note shall not include any conversion right. If Holder elects to cause the Successor Entity to issue the New Note upon the consummation of a Fundamental Transaction, upon the exchange by Holder of this Note for the New Note, this Note shall be of no further force or effect and the rights and obligations of Holder and the Successor Entity shall be as set forth in the New Note. 

 

(ii)Conversion upon Fundamental Transaction. The Fundamental Transaction Notice shall allow for Holder to elect to convert the Outstanding Balance of this Note into Common Stock and set forth the manner in which Holder may make such election and receive Conversion Shares. The Outstanding Balance of this Note shall be convertible into a number of Conversion Shares determined by dividing the Outstanding Balance by either (x) $0.001 per share or (y) an amount equal to 80% of the aggregate fair market value of all consideration paid by the Successor Entity for each share of Common Stock acquired in the Fundamental Transaction or, if the Successor Entity did not acquire the capital stock of the Company directly from the Company’s stockholders, the amount distributed by the Company to the Company’s stockholders for each share of Common Stock outstanding, whichever yields to Holder the greatest number of Conversion Shares. 

 

3.Reservation of Securities. The Company shall at all times reserve and keep available out of (a) its authorized but unissued shares of Common Stock and (b) the number of shares of Common Stock offered in the Regulation A Offering for the purpose of effecting the conversion of this Note, the full number of shares of Common Stock then issuable upon the conversion of this Note. 

 

4.Restrictive Legend. Any securities issuable upon the conversion of this Note shall be stamped or imprinted with legends substantially the following form: 

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

The certified book statement representing the Conversion Shares also will be imprinted with any legends required under the  


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 2



state securities laws of the jurisdiction in which Holder is domiciled or resides.

 

5.Events of Default. If any of the following events of default (collectively, “Events of Default”) shall occur prior to the Maturity Date: 

 

(a)the Company shall fail to make the payment of any principal or interest for a period of thirty (30) days after the date such payment shall become due and payable hereunder; 

 

(b)the Company shall fail to comply with any covenant, agreement or term contained in this Note in any material respect (other than the payment of principal or interest), and such failure has continued for thirty (30) days after the Company has been notified in writing of such failure by Holder; 

 

(c)the liquidation, termination or dissolution of the Company or its ceasing to carry on actively its present business or the appointment of a receiver for a material portion of its property, or the making of an assignment for the benefit of creditors by the Company; or 

 

(d)the institution of bankruptcy, reorganization, arrangement, liquidation, receivership, moratorium or similar proceedings by or against the Company, and, if so instituted against the Company, the pendency thereof for thirty (30) days, 

 

then, and in any such event the Company shall inform Holder in writing of, and promptly upon, occurrence of such event and thereupon and at any time thereafter while such Event of Default is continuing, Holder, by written notice to the Company (the “Default Notice”), may declare the entire unpaid principal amount of this Note, together with all accrued but unpaid interest thereon, to be immediately due and payable no later than thirty (30) days after receipt of such Default Notice by the Company; provided, however, that notwithstanding the above, if there shall occur an Event of Default under clause (c) or (d) or above, then this Note shall become immediately due and payable without the necessity of any action by Holder or notice to the Company.

 

6.Waiver. The Company waives presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement hereof and also waive any delay on the part of Holder hereof. No failure or delay on the part of Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 

 

7.Powers and Remedies Cumulative. No right or remedy herein conferred upon or reserved to Holder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. Every power and remedy given by the Transaction Documents or by law may be exercised from time to time, and as often as shall be deemed expedient, by Holder. 

 

8.Parties in Interest. This Note shall be binding upon the Company and its successors and permitted assigns and the terms hereof shall inure to the benefit of Holder and its successors and permitted assigns. 

 

9.Amendments. This Note may be amended, modified or terminated only by a written instrument executed by the Company and Holder. Any amendment, modification or termination so effected shall be binding upon the Company, Holder and all of its successors and permitted assigns, whether or not such party, assignee or other holder entered into or approved such amendment, modification or termination. 

 

10.Binding Effect. The obligations of the Company and Holder set forth herein shall be binding upon the successors and permitted assigns of each such party. 

 

11.Maximum Permissible Rate. Notwithstanding anything herein to the contrary, payment of any interest, expense or other amount shall not be required if such payment would be unlawful. In any such event, this Note shall automatically be deemed amended so that interest charges and all other payments required hereunder, individually and in the aggregate, shall be equal to but not greater than the maximum permitted by law. 

 

12.Severability. In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, then and in any such event, such provision(s) only shall be deemed null and void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in  


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 3



full force and effect and in no way shall be affected, prejudiced, or disturbed thereby.

 

13.Reserved. 

 

14.Indemnity and Enforcement Expenses. The Company agrees: 

 

(a)to indemnify and hold harmless Holder and each of officers, directors, members, employees, agents, Affiliates and successors from and against any and all claims, damages, demands, losses, obligations, judgments, suits, actions, threats and liabilities (including, without limitation, reasonable attorneys’ fees and expenses) in any way arising out of or in connection with this Note; and 

 

(b)to pay and reimburse Holder upon demand for all costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) that Holder may incur in connection with (i) the exercise or enforcement of any rights or remedies (including, but not limited to, collection) granted hereunder or otherwise available to it (whether at law, in equity or otherwise), or (ii) the failure by the Company to perform or observe any of the provisions hereof. 

 

The provisions of this Section 14 shall survive the execution and delivery of this Note, the repayment of any or all of the Principal Amount and/or Accrued Interest and the conversion of all or any portion of the Outstanding Balance. 

 

15.Governing Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement, including relating to the dissolution of the Company, whether sounding in contract, tort, equity or otherwise, shall be governed by and construed in accordance with the internal laws of the State of Nevada, without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Nevada. 

 

16.Governing Law; Venue. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. 

 

17.Replacement of Note. In case this Note shall become mutilated or defaced, or be destroyed, lost or stolen, the Company shall execute and deliver a new note of like tenor and amount in exchange and substitution for the mutilated or defaced Note, or in lieu of and in substitution for the destroyed, lost or stolen Note. In the case of a mutilated or defaced Note, Holder shall surrender such Note to the Company. In the case of any destroyed, lost or stolen Note, Holder shall furnish to the Company: (a) evidence to its satisfaction of the destruction, loss or theft of such Note and (b) such security or indemnity as may be reasonably required by the Company to hold the Company harmless. 

 

18.Headings. Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute a part of this Note for any other purpose. 

 

19.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (ii) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. 

 

The addresses for such communications shall be:  

 

If to the Company, to:

Raadr, Inc., 7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260

Attention: Chief Executive Officer 


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 4



If to Holder:

NLF Support Services, LLC, 16380 County Road 306, Buena Vista, Colorado 81211

Attention: Director of Investments 

 

20.Definitions. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in this Section 1. 

 

(a)“Common Stock” means the Company’s common stock, par value $0.001 per share. 

 

(b)“Conversion Rate” means the rate at which the Outstanding Balance converts into shares of Common Stock, which shall be equal to the Offering Price. 

 

(c)“Conversion Shares” means the shares of Common Stock issuable upon conversion of this Note, comprising shares of Common Stock offered in the Regulation A Offering and Holder shall be deemed to have purchased the Conversion Shares in the Regulation A Offering. 

 

(d)“Exchange Act” means the Securities Exchange Act of 1934. 

 

(e)“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person or Persons, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of capital stock (not including any shares of capital stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization or spin-off) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of capital stock of the Company, or (v) reorganize, recapitalize or reclassify its class of common stock or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate capital stock of the Company outstanding. 

 

(f)“Fundamental Transaction Notice” means the written notice from the Company to Holder describing a proposed Fundamental Transaction which shall include all material nonpublic information then possessed by the Company pertaining to the Fundamental Transaction and the Successor Entity, including the fair market value of the consideration to be paid by the Successor for each share of Common Stock outstanding. 

 

(g)“Note” shall mean this 5% Convertible Promissory Note. 

 

(h)“Offering Price” shall mean the price at which the shares of Common Stock are offered in the Regulation A Offering. 

 

(i)“Outstanding Balance” shall mean the Principal Amount and all interest accrued thereon at any time as calculated in accordance with this Note. 

 

(j)“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

 

(k)“Qualification Date” shall mean the date on which the Company’s offering circular with respect to the offering of Common Stock pursuant to Regulation A is first “qualified” by the SEC and any other relevant state or other jurisdictional qualification. 

 

(l)“Regulation A” shall mean Regulation A of the rules and regulations promulgated under the Securities Act. 

 

(m)“Regulation A Offering” shall mean the first offering of shares of Common Stock to be undertaken by the Company pursuant to Regulation A after the Issuance Date of this Note. 

 

(n)“Required Holders” means the holders of at least a majority of the principal amount of the Notes then outstanding. 


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 5



(o)“SEC” shall mean the United States Securities and Exchange Commission. 

 

(p)“Securities Act” shall mean the Securities Act of 1933, as amended. 

 

(q)“Successor Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental Transaction shall have been made. 

 

The Company has caused this Convertible Promissory Note to be signed in its name and executed as of the date first written above. 

 

RAADR, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 6


THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

RAADR, INC.

 

5% CONVERTIBLE PROMISSORY NOTE

 

Principal Amount: $40,000.00Issuance Date: July 15, 2024 

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (the “Company”), promises to pay to NLF Support Services, LLC (“Holder”), the Principal Amount, together with interest accrued thereon, as hereinafter provided. 

 

Certain capitalized terms used herein are defined in Section 20. 

 

1.Interest. 

 

(a)Rate. Interest shall accrue on the Principal Amount at the rate of five percent (5%) per annum (“Interest”) commencing as of the Issuance Date and continuing through the date on which this Note automatically converts as provided in Section 2 below or the Company otherwise fully satisfies all of its obligations under this Note. All computations of Interest hereunder shall be made on the basis of a 360-day year of twelve 30-day months. 

 

(b)Default Rate. If all or a portion of the Principal Amount or Interest shall not be paid when due (whether at its stated maturity, by acceleration or otherwise), the Company hereby promises to pay, on demand, interest on such overdue amount from and including the due date to, but excluding, the date such amount is paid in full, at twelve percent (12%) per annum until the date such overdue amount is paid in full. 

 

2.Maturity; Conversion. This Note shall mature on the earlier of the Qualification Date or July 31, 2025, as provided in this Section 2. 

 

(a)Conversion. 

 

(i)Automatic Conversion on Qualification Date. On the Qualification Date, the Outstanding Balance shall, without any action on the part of Holder, automatically convert into a number of Conversion Shares calculated by dividing the Outstanding Balance by the Conversion Rate (“Automatic Conversion”). Upon issuance as provided in this Section 2(a)(i), the Conversion Shares shall be fully paid and non-assessable shares of the Common Stock of the Company. As of the Qualification Date, this Note shall be of no further force or effect and the Company’s only obligation to Holder shall be to deliver a certificate evidencing the Conversion Shares. 

 

(ii)Mechanics of Conversion. 

 

(1)Upon the Qualification Date, the Company shall provide Holder with written notice thereof and within two business days thereafter, Holder shall surrender this Note to the Company in the manner provided in such notice. Upon conversion and surrender of this Note, Holder hereby agrees to execute and deliver to the Company a subscription agreement (the “Subscription Agreement”), in the form included in the Offering Statement on Form 1-A that embodies the Regulation A Offering. 

 

(2)The Company shall, as soon as practicable after the surrender of this Note and delivery of the Subscription Agreement as provided in Section 2(a)(ii)(1) above, issue and deliver to Holder, a certified book statement representing the number of Conversion Shares to which Holder shall be entitled. The Company shall not be obligated to issue any certificate or other instrument evidencing any Conversion Shares, unless this Note is either delivered to the Company or Holder notifies the Company that this Note has been lost, stolen or destroyed and executes an agreement reasonably satisfactory to the Company to indemnify the Company from any loss incurred by the Company in connection therewith. 

 

(iii)No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. No fractional shares of equity securities shall be issued upon conversion of this Note into Conversion Shares. In lieu of fractional shares to which Holder would otherwise be entitled, the Company shall round up any fractional share to the next whole  


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 1



share.

 

(iv)Cancellation of Note. Upon the conversion of this Note pursuant to this Section 2(a), this Note shall be canceled and of no further force or effect and, Holder’s only remedy shall be to receive a certificate representing the Conversion Shares. 

 

(b)Payment on Maturity. Unless sooner converted in accordance with Section 2(a), the Outstanding Balance shall become due and payable by the Company on July 31, 2025 (the “Maturity Date”). The Company shall pay to Holder the Outstanding Balance without deduction by reason of any set-off, defense or counterclaim in immediately available funds in lawful currency of the United States of America at Holder’s address on file with the Company or at such other place as Holder shall have designated to the Company in writing. Payment shall be credited first to any costs, expenses or charges then payable to Holder, then to accrued but unpaid interest then due and payable, and then to principal. 

 

(c)Fundamental Transaction. If, prior to an Automatic Conversion or payment of the Outstanding Balance upon Maturity, the Company proposes to enter into or become a party to a Fundamental Transaction, then the Company shall transmit to Holder a Fundamental Transaction Notice not less than twenty (20) days prior to the closing date of such proposed Fundamental Transaction and Holder shall have the option to cause the Successor Entity to assume this Note as provided in Subsection 2(c)(i) or to convert this Note into shares of Common Stock as provided in Subsection 2(c)(ii) below. Holder shall communicate its election with respect to this Note not less than ten (10) days prior to the date of the Fundamental Transaction in the manner directed in the Fundamental Transaction Notice (the “Election Date”). If Holder fails to communicate its election to the Company prior to the Election Date, this Note automatically shall be assumed by the Successor Entity as provided in Section 2(c)(i) below. 

 

(i)Assumption by Successor Entity upon Fundamental Transaction. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Note in accordance with the provisions of this Section 2(c)(i) pursuant to written agreements in form and substance reasonably satisfactory to Holder and approved by Holder (without unreasonable delay) prior to such Fundamental Transaction, including an agreement to deliver to Holder a promissory note made by the Successor Entity, which includes terms, provisions and conditions similar to the terms, provisions and conditions of this Note in all material respects, and shall provide for a principal amount and interest rate equal to the principal amount and the interest rate of this Note (the “New Note”), except that the New Note shall not include any conversion right. If Holder elects to cause the Successor Entity to issue the New Note upon the consummation of a Fundamental Transaction, upon the exchange by Holder of this Note for the New Note, this Note shall be of no further force or effect and the rights and obligations of Holder and the Successor Entity shall be as set forth in the New Note. 

 

(ii)Conversion upon Fundamental Transaction. The Fundamental Transaction Notice shall allow for Holder to elect to convert the Outstanding Balance of this Note into Common Stock and set forth the manner in which Holder may make such election and receive Conversion Shares. The Outstanding Balance of this Note shall be convertible into a number of Conversion Shares determined by dividing the Outstanding Balance by either (x) $0.001 per share or (y) an amount equal to 80% of the aggregate fair market value of all consideration paid by the Successor Entity for each share of Common Stock acquired in the Fundamental Transaction or, if the Successor Entity did not acquire the capital stock of the Company directly from the Company’s stockholders, the amount distributed by the Company to the Company’s stockholders for each share of Common Stock outstanding, whichever yields to Holder the greatest number of Conversion Shares. 

 

3.Reservation of Securities. The Company shall at all times reserve and keep available out of (a) its authorized but unissued shares of Common Stock and (b) the number of shares of Common Stock offered in the Regulation A Offering for the purpose of effecting the conversion of this Note, the full number of shares of Common Stock then issuable upon the conversion of this Note. 

 

4.Restrictive Legend. Any securities issuable upon the conversion of this Note shall be stamped or imprinted with legends substantially the following form: 

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

The certified book statement representing the Conversion Shares also will be imprinted with any legends required under the  


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 2



state securities laws of the jurisdiction in which Holder is domiciled or resides.

 

5.Events of Default. If any of the following events of default (collectively, “Events of Default”) shall occur prior to the Maturity Date: 

 

(a)the Company shall fail to make the payment of any principal or interest for a period of thirty (30) days after the date such payment shall become due and payable hereunder; 

 

(b)the Company shall fail to comply with any covenant, agreement or term contained in this Note in any material respect (other than the payment of principal or interest), and such failure has continued for thirty (30) days after the Company has been notified in writing of such failure by Holder; 

 

(c)the liquidation, termination or dissolution of the Company or its ceasing to carry on actively its present business or the appointment of a receiver for a material portion of its property, or the making of an assignment for the benefit of creditors by the Company; or 

 

(d)the institution of bankruptcy, reorganization, arrangement, liquidation, receivership, moratorium or similar proceedings by or against the Company, and, if so instituted against the Company, the pendency thereof for thirty (30) days, 

 

then, and in any such event the Company shall inform Holder in writing of, and promptly upon, occurrence of such event and thereupon and at any time thereafter while such Event of Default is continuing, Holder, by written notice to the Company (the “Default Notice”), may declare the entire unpaid principal amount of this Note, together with all accrued but unpaid interest thereon, to be immediately due and payable no later than thirty (30) days after receipt of such Default Notice by the Company; provided, however, that notwithstanding the above, if there shall occur an Event of Default under clause (c) or (d) or above, then this Note shall become immediately due and payable without the necessity of any action by Holder or notice to the Company.

 

6.Waiver. The Company waives presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement hereof and also waive any delay on the part of Holder hereof. No failure or delay on the part of Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 

 

7.Powers and Remedies Cumulative. No right or remedy herein conferred upon or reserved to Holder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. Every power and remedy given by the Transaction Documents or by law may be exercised from time to time, and as often as shall be deemed expedient, by Holder. 

 

8.Parties in Interest. This Note shall be binding upon the Company and its successors and permitted assigns and the terms hereof shall inure to the benefit of Holder and its successors and permitted assigns. 

 

9.Amendments. This Note may be amended, modified or terminated only by a written instrument executed by the Company and Holder. Any amendment, modification or termination so effected shall be binding upon the Company, Holder and all of its successors and permitted assigns, whether or not such party, assignee or other holder entered into or approved such amendment, modification or termination. 

 

10.Binding Effect. The obligations of the Company and Holder set forth herein shall be binding upon the successors and permitted assigns of each such party. 

 

11.Maximum Permissible Rate. Notwithstanding anything herein to the contrary, payment of any interest, expense or other amount shall not be required if such payment would be unlawful. In any such event, this Note shall automatically be deemed amended so that interest charges and all other payments required hereunder, individually and in the aggregate, shall be equal to but not greater than the maximum permitted by law. 

 

12.Severability. In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, then and in any such event, such provision(s) only shall be deemed null and void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in  


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 3



full force and effect and in no way shall be affected, prejudiced, or disturbed thereby.

 

13.Reserved. 

 

14.Indemnity and Enforcement Expenses. The Company agrees: 

 

(a)to indemnify and hold harmless Holder and each of officers, directors, members, employees, agents, Affiliates and successors from and against any and all claims, damages, demands, losses, obligations, judgments, suits, actions, threats and liabilities (including, without limitation, reasonable attorneys’ fees and expenses) in any way arising out of or in connection with this Note; and 

 

(b)to pay and reimburse Holder upon demand for all costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) that Holder may incur in connection with (i) the exercise or enforcement of any rights or remedies (including, but not limited to, collection) granted hereunder or otherwise available to it (whether at law, in equity or otherwise), or (ii) the failure by the Company to perform or observe any of the provisions hereof. 

 

The provisions of this Section 14 shall survive the execution and delivery of this Note, the repayment of any or all of the Principal Amount and/or Accrued Interest and the conversion of all or any portion of the Outstanding Balance. 

 

15.Governing Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement, including relating to the dissolution of the Company, whether sounding in contract, tort, equity or otherwise, shall be governed by and construed in accordance with the internal laws of the State of Nevada, without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Nevada. 

 

16.Governing Law; Venue. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. 

 

17.Replacement of Note. In case this Note shall become mutilated or defaced, or be destroyed, lost or stolen, the Company shall execute and deliver a new note of like tenor and amount in exchange and substitution for the mutilated or defaced Note, or in lieu of and in substitution for the destroyed, lost or stolen Note. In the case of a mutilated or defaced Note, Holder shall surrender such Note to the Company. In the case of any destroyed, lost or stolen Note, Holder shall furnish to the Company: (a) evidence to its satisfaction of the destruction, loss or theft of such Note and (b) such security or indemnity as may be reasonably required by the Company to hold the Company harmless. 

 

18.Headings. Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute a part of this Note for any other purpose. 

 

19.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (ii) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. 

 

The addresses for such communications shall be:  

 

If to the Company, to:

Raadr, Inc., 7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260

Attention: Chief Executive Officer 


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 4



If to Holder:

NLF Support Services, LLC, 16380 County Road 306, Buena Vista, Colorado 81211

Attention: Director of Investments 

 

20.Definitions. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in this Section 1. 

 

(a)“Common Stock” means the Company’s common stock, par value $0.001 per share. 

 

(b)“Conversion Rate” means the rate at which the Outstanding Balance converts into shares of Common Stock, which shall be equal to the Offering Price. 

 

(c)“Conversion Shares” means the shares of Common Stock issuable upon conversion of this Note, comprising shares of Common Stock offered in the Regulation A Offering and Holder shall be deemed to have purchased the Conversion Shares in the Regulation A Offering. 

 

(d)“Exchange Act” means the Securities Exchange Act of 1934. 

 

(e)“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person or Persons, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of capital stock (not including any shares of capital stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization or spin-off) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of capital stock of the Company, or (v) reorganize, recapitalize or reclassify its class of common stock or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate capital stock of the Company outstanding. 

 

(f)“Fundamental Transaction Notice” means the written notice from the Company to Holder describing a proposed Fundamental Transaction which shall include all material nonpublic information then possessed by the Company pertaining to the Fundamental Transaction and the Successor Entity, including the fair market value of the consideration to be paid by the Successor for each share of Common Stock outstanding. 

 

(g)“Note” shall mean this 5% Convertible Promissory Note. 

 

(h)“Offering Price” shall mean the price at which the shares of Common Stock are offered in the Regulation A Offering. 

 

(i)“Outstanding Balance” shall mean the Principal Amount and all interest accrued thereon at any time as calculated in accordance with this Note. 

 

(j)“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

 

(k)“Qualification Date” shall mean the date on which the Company’s offering circular with respect to the offering of Common Stock pursuant to Regulation A is first “qualified” by the SEC and any other relevant state or other jurisdictional qualification. 

 

(l)“Regulation A” shall mean Regulation A of the rules and regulations promulgated under the Securities Act. 

 

(m)“Regulation A Offering” shall mean the first offering of shares of Common Stock to be undertaken by the Company pursuant to Regulation A after the Issuance Date of this Note. 

 

(n)“Required Holders” means the holders of at least a majority of the principal amount of the Notes then outstanding. 


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 5



(o)“SEC” shall mean the United States Securities and Exchange Commission. 

 

(p)“Securities Act” shall mean the Securities Act of 1933, as amended. 

 

(q)“Successor Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental Transaction shall have been made. 

 

The Company has caused this Convertible Promissory Note to be signed in its name and executed as of the date first written above. 

 

RAADR, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


5% CONVERTIBLE PROMISSORY NOTE   |   PAGE 6

 

AMENDMENT NUMBER 1

TO

PROMISSORY NOTE

 

This Amendment No. 1 to the Promissory Note (this "Amendment") is executed as of October 8, 2024 (the “Effective Date”) by RAADR, INC. (the “Maker”); and BOOT CAPITAL LLC ("Holder"), to amend the Promissory Note dated November 18, 2022 in favor of Holder (the "Note").

 

Without any additional consideration from the Holder to the Maker which is hereby acknowledged and agreed by the parties, the Maker and the Holder desire to amend the Note and further agree as follows:

 

1.Capitalized Terms. Except as expressly provided in this Amendment, all capitalized terms used in this Amendment have meanings ascribed to them in the Note and those definitions are incorporated by reference into the Note. 

 

2.The following is hereby added as Section 4.7 of the Note: 

 

“Leak-Out Agreement.

 

(a) Leak Out. Beginning on the Effective Date and continuing until the Maturity Date, (the “Leak-Out Period”), Investor agrees that during the Leak-Out Period the aggregate number of Conversion Shares that Investor shall have the right, but not the obligation, to sell into the public markets (each such transaction, a “Disposition”), on a per-calendar-week basis, shall not exceed the greater of (i) 20,000,000 or (ii) ten percent (10%) of the number of shares of Company common stock that were traded in the public markets during the immediately preceding calendar week (the “Weekly Leak-Out Amount”), as reported by OTC Markets Group, Inc. (“OTCM”) or any successor entity or by a national securities exchange in the event that, at such time, the Company’s common stock is listed thereof (any such entity of exchange, the “OTCM Successor”).

 

(b) Cumulative Disposition. If, during any calendar week within the Leak-Out Period, the cumulative amount of Conversion Shares sold by the Investor during the Leak-Out Period then-to-date is less than the cumulative Weekly Leak-Out Amount during the Leak-Out Period then-to-date, then Investor shall have the right, but not the obligation, to engage in one or more additional Disposition transactions, such that, at the conclusion of such additional Disposition transaction(s), Investor will have engaged in Disposition transactions in an amount that does not exceed the cumulative Weekly Leak-Out Amount during the Leak-Out Period then to-date.

 

(c) OTCM Website. For purposes of determining the monthly trading volume of the shares of Company common stock, such volume information shall be derived from data published on the website of OTCM or the website of a relevant OTCM Successor.

 

(d) Transferee Restrictions. Any transferee of any of the Conversion Shares, other than as permitted in connection with a waiver (as referenced in subparagraph (f) below) or as otherwise permitted pursuant to the terms hereof, shall be subject to all of the terms and conditions of this Agreement and, solely for such purposes, any such transferee shall be included in the definition of Investor.

 

 

 


 

(e) Company Waiver. Notwithstanding anything to the contrary contained herein, the Company may, in its sole discretion and in good faith, at any time and from time to time, waive any of the conditions or restrictions in its favor contained in this Agreement.

 

(f) Outstanding Balance Adjustments. In the event that (i) the balance due under the Note is not paid in full by the Maturity Date, (ii) any other Event of Default occurs, or (iii) the cumulative net proceeds from Dispositions during the Leak-Out Period is less than the Preadjusted Balance, the following terms shall apply: (a) fees, penalties, and default interest (as described in the Note) shall begin accruing (collectively, the “Default Fees”), (b) the balance due under the Note shall increase in an amount equal to the Amendment Adjustment (defined above) in addition to the aforementioned Default Fees and (c) all remedies described in the Note upon an Event of Default shall be available to the Investor.”

 

3.Counterparts and Electronic Means. This Amendment may be executed in any number of counterparts, each of which will be deemed to be an original and all of which will together constitute one and the same instrument. Delivery of an executed copy of this Agreement by electronic facsimile transmission or other means of electronic communication capable of producing a printed copy will be deemed to be execution and delivery of this Agreement as of the day and year first written above. 

 

4.Third Parties. Except as specifically set forth or referred to herein, nothing herein express of implied is intended or shall be construed to confer upon or give to any person other than the parties hereto and their permitted successors or assigns, any claims, rights, remedies under or by reason of this Amendment. 

 

5.Governing Law. This Amendment shall be governed and construed in accordance with the laws of the State of Nevada applicable to agreements made and to be performed entirely within such State and the federal laws of the United States of America, without regard to the conflict of laws rules thereof. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


2


 

IN WITNESS WHEREOF, the undersigned have executed this Amendment as of the date set forth above.

 

RAADR, INC.

 

By: /s/ Jacob DiMartino

Jacob DiMartino

Chief Executive Officer/President

 

BOOT CAPITAL LLC

 

By: /s/ Peter Rosten

Peter Rosten

President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


3

 

SECOND AMENDMENT TO SENIOR SECURED

CONVERTIBLE PROMISSORY NOTE

 

This AMENDMENT TO SENIOR SECURED CONVERTIBLE PROMISSORY NOTE (this “Agreement”) is entered into as of October 1, 2024 (the “Effective Date”), by and between Raadr, Inc., a Nevada corporation (the “Company”), and Leonite Fund I, LP, a Delaware limited partnership (the “Investor” and, together with the Company, the “Parties”). Capitalized terms used but not defined herein shall have the meanings ascribed to them under the Loan Documents (defined below).

 

WHEREAS, the Borrower and the Investor entered into that certain SENIOR SECURED CONVERTIBLE PROMISSORY NOTE dated July 29, 2021, as amended from time to time thereafter, including the First Amendment, defined below (collectively, the “Note”), issued by the Borrower to the Investor pursuant to the terms of that certain SECURITIES PURCHASE AGREEMENT of even date therewith (the “SPA”), and secured pursuant to that certain SECURITY AND PLEDGE AGREEMENT of even date therewith (the “Security Agreement” and collectively with the Note and the SPA, the “Loan Documents”); and

 

WHEREAS, the Borrower and the Investor entered into that certain AMENDMENT TO SENIOR SECURED CONVERTIBLE PROMISSORY NOTE, dated May 3, 2024, pursuant to which (i) the balance due under the Note was reduced from $226,444.38 (the “Preadjusted Balance”) to $80,000 (the “Amended Balance”), for a total reduction of the balance due under the Note in the amount of $146,444.38 (the “Amendment Adjustment”), (ii) the Investor agreed to a Leak Out, and (iii) the maturity date of the Note was extended to May 2, 2025 (the “Maturity Date”).

 

WHEREAS, subject to the terms and conditions set forth herein, the Company and the Investor desire to enter into this Agreement to amend the Note and provide for a leak out with respect to shares of the Company’s common stock issuable upon conversion of the Note (the “Conversion Shares”).

 

NOW, THEREFORE, in consideration of the rights and benefits that they will each receive in connection with this Agreement, the Parties, intending to be legally bound, agree as follows:

 

1.Leak-Out Agreement. 

 

(a)Leak Out. Beginning on the Effective Date and continuing until the Maturity Date, (the “Leak-Out Period”), Investor agrees that during the Leak-Out Period the aggregate number of Conversion Shares that Investor shall have the right, but not the obligation, to sell into the public markets (each such transaction, a “Disposition”), on a per-calendar-week basis, shall not exceed the greater of (i) 20,000,000 or (ii) ten percent (10%) of the number of shares of Company common stock that were traded in the public markets during the immediately preceding calendar week (the “Weekly Leak-Out Amount”), as reported by OTC Markets Group, Inc. or any successor entity or by a national securities exchange in the event that, at such time, the Company’s common stock is listed thereof (any such entity of exchange, the “OTCM Successor”). 

 

 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 1


 

 

(b)Cumulative Disposition. If, during any calendar week within the Leak-Out Period, the cumulative amount of Conversion Shares sold by the Investor during the Leak-Out Period then-to-date is less than the cumulative Weekly Leak-Out Amount during the Leak-Out Period then-to-date, then Investor shall have the right, but not the obligation, to engage in one or more additional Disposition transactions, such that, at the conclusion of such additional Disposition transaction(s), Investor will have engaged in Disposition transactions in an amount that does not exceed the cumulative Weekly Leak-Out Amount during the Leak-Out Period then-to-date. 

 

(c)OTCM Website. For purposes of determining the monthly trading volume of the shares of Company common stock, such volume information shall be derived from data published on the website of OTCM or the website of a relevant OTCM Successor. 

 

(d)Transferee Restrictions. Any transferee of any of the Conversion Shares, other than as permitted in connection with a waiver (as referenced in subparagraph (f) below) or as otherwise permitted pursuant to the terms hereof, shall be subject to all of the terms and conditions of this Agreement and, solely for such purposes, any such transferee shall be included in the definition of Investor. 

 

(e)Company Waiver. Notwithstanding anything to the contrary contained herein, the Company may, in its sole discretion and in good faith, at any time and from time to time, waive any of the conditions or restrictions in its favor contained in this Agreement. 

 

2.Outstanding Balance Adjustments. In the event that (i) the balance due under the Note is not paid in full by the Maturity Date, (ii) any other Event of Default occurs, or (iii) the cumulative net proceeds from Dispositions during the Leak-Out Period is less than the Preadjusted Balance, the following terms shall apply: (a) fees, penalties, and default interest (as described in the Note) shall begin accruing (collectively, the “Default Fees”), (b) the balance due under the Note shall increase in an amount equal to the Amendment Adjustment (defined above) in addition to the aforementioned Default Fees and (c) all remedies described in the Note upon an Event of Default shall be available to the Investor. 

 

3.Closing Conditions. 

 

(a)Conditions to the Investor’s Obligations. The obligation of the Investor hereunder is subject to the fulfillment, to the Investor’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(i)Representations and Warranties. The representations and warranties of the Company contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 

 

(ii)No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 2


 

 

(iii)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to the Investor, and the Investor shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request. 

 

(b)Conditions to the Company’s Obligations. The obligation of the Company hereunder is subject to the fulfillment, to the Company’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(i)Representations and Warranties. The representations and warranties of the Investor contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 

 

(ii)No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit, or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

(iii)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to the Company and the Company shall have received all such counterpart originals or certified or other copies of such documents as the Company may reasonably request. 

 

4.Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor as of the date hereof as follows: 

 

(a)Organization and Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of Nevada. The Company has all requisite corporate power and authority to own and operate its properties and assets and to carry on its business as presently conducted. The Company is duly qualified and authorized to transact business and is in good standing as a foreign corporation in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business, properties or financial condition. 

 

(b)Corporate Power. The Company has all requisite legal and corporate power and authority to execute and deliver this Agreement and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby. Authorization. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement. This Agreement has been duly executed by the Company and constitutes valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms, subject to applicable law. 

 

 

 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 3


 

 

(c)Capitalization. As of the date of this Agreement, the authorized capital stock of the Company consists of: 15,000,000,000 shares of common stock, , par value $0.001 per share, of which 4,433,149,661 shares are issued and outstanding; and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and 1,000,000 shares of which are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and no shares of which are issued and outstanding. All of the Company’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 

 

(d)Consents; Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any Person, not already obtained, is required in connection with the execution and delivery of this Agreement by the Company or the consummation by the Company of the transactions provided for herein and therein. As used herein, “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

 

(e)Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of the Company’s officers or directors in their capacities as such. 

 

(f)Validity; Enforcement; No Conflicts. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby will not (1) result in a violation of the organizational documents of the Company, (2) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or by which it is bound, or (3) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities or “blue sky” laws) applicable to the Company, except in the case of clause (2) above, for such conflicts, defaults or rights which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder. 

 

5.Representations and Warranties of the Investor. Investor hereby represents and warrants as of the date hereof to the Company as follows: 

 

 

 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 4


 

 

(a)Corporate Power. Investor has all requisite legal and corporate power and authority to execute and deliver this Agreement, and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby. 

 

(b)Authorization. All corporate action on the part of Investor, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the performance of all of Investor’s obligations hereunder have been taken or will be taken when required as applicable. This Agreement has been duly executed by Investor and constitutes valid and legally binding obligations of Investor, enforceable against Investor in accordance with their respective terms, subject to applicable law. 

 

6.Miscellaneous. 

 

(a)Entire Agreement. This Agreement, together with the schedules and exhibits attached hereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written with respect to such matters. 

 

(b)Notices. 

 

(i)All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (2) personally served, (2) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (3) delivered by reputable air courier service with charges prepaid, or (4) transmitted by hand delivery or e-mail, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. 

 

(ii)Any notice or other communication required or permitted to be given hereunder shall be deemed effective (A) upon hand delivery or delivery by e-mail at the address or e-mail address designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (B) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall occur first. Such notice shall be properly delivered to the address set forth beneath the name of such party below: 

 

If to Investor:

Leonite Fund I, LP

600 East Crescent Ave, Suite 203

Upper Saddle River, NJ 07458

Attention: Avi Geller

E-mail: avi@leonitecap.com

 

 

 

 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 5


 

 

If to the Company: Raadr, Inc.

7950 E. Redfield Road, Unit 210

Scottsdale, Arizona 85260

Attention: Chief Executive Officer

ir@raadr.com

 

(c)Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Investor, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

 

(d)Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

 

(e)Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. 

 

(f)No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

 

(g)Release. Company, on behalf of themselves and their heirs, executors, administrators, agents, members, managers, directors, shareholders, officers, successors and assigns (all of the foregoing, collectively, the “Company Releasors”), hereby release and forever discharge the Investor (individually and together), its agents, attorneys, successors and assigns (all of the foregoing, collectively, the “Investor Releasees”) from all liabilities, charges, claims, Agreements, causes of action, or suits, of whatever kind or nature, whether accrued, absolute, contingent, liquidated or unliquidated, known or unknown, which the Company Releasors ever had, now have, or hereafter can, shall, or may have against the Investor Releasees for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world to the date of this Agreement arising from, or relating to, the Consolidated Note or the other Loan Documents. 

 

(h)No Duress. The Company represents and acknowledges that it has been provided with a reasonable period of time within which to discuss and review the terms of this Agreement with its counsel before signing it and that it is freely and voluntarily signing this Agreement in exchange for the benefits provided herein. Having acknowledged the foregoing, the Parties agree (i) that they will not contest the validity of this Agreement and the transactions contemplated therein, and (ii) that this Agreement shall be construed without regard to any presumption or other rule requiring construction against the Party causing the drafting thereof. 

 

(i)Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflicts of laws. 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 6


 

 

Any action brought by either party against the other concerning the interpretation, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be brought only in the state and/or federal courts located in Delaware. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. THE COMPANY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE OR ANY TRANSACTIONS CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement or any other related documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

(j)Execution. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

 

(k)Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ, an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

 

(l)Construction. The parties hereto agree that each of them and/or their respective counsel have reviewed and have had an opportunity to revise this Agreement and the schedules attached hereto. This Agreement shall be construed according to its fair meaning and not strictly for or against any party. The word “including” shall be construed to include the words “without limitation.” In this Agreement, unless the context otherwise requires, references to the singular shall include the plural and vice versa. 

 

[SIGNATURE PAGE FOLLOWS]

 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 7


 

 

[SIGNATURE PAGE TO SECOND AMENDMENT TO PROMISSORY NOTE]

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed and delivered as of the date and year first written above.

 

COMPANY:

 

INVESTOR:

 

 

 

RAADR, INC.

 

Leonite Fund I, LP

 

 

By its Manager, Leonite Advisors LLC

 

 

 

By: /s/ Jacob DiMartino

 

By: /s/ Avi Geller

Jacob DiMartino

 

Name: Avi Geller

Chief Executive Officer

 

Title: Manager

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SECOND AMENDMENT TO PROMISSORY NOTE | 8

 

THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

RAADR, INC.

 

8% CONVERTIBLE PROMISSORY NOTE

 

Principal Amount: $25,000.00

Issuance Date: October 1, 2024

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of FirstFire Global Opportunity Fund, LLC, or registered assigns (the “Holder”), the sum of $25,000.00 together with any interest as set forth herein, on October 1, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note.

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”).

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.

 

The following terms shall apply to this Note:

 

Article I. Conversion Rights

 

1.1Conversion Right. Upon an Event of Default that shall not have been cured, the Holder shall have the right from time to time, and at any time during the period beginning on the date which is one hundred eighty (180) days following the date of this Note and ending on the later of: (i) the Maturity Date, or (ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which the sum  


8% CONVERTIBLE PROMISSORY NOTE | 1


of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 75% multiplied by the Market Price (as defined herein) (representing a discount rate of 25%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement.

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower is required at all times to have authorized and reserved four and one half times the number of shares that would be issuable upon full conversion of the Note (assuming that the 4.99% limitation set forth in Section 1.1 is not in effect) (based on the respective Conversion Price of the Note (as defined in Section 1.2) in effect from time to time, initially 1,000,000 shares) (the “Reserved Amount”). The Reserved Amount shall be increased (or decreased with the written consent of the Holder) from time to time in accordance with the Borrower’s obligations hereunder. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the  


8% CONVERTIBLE PROMISSORY NOTE | 2


then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and (ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note. If, at any time the Borrower does not maintain the Reserved Amount it will be considered an Event of Default under Section 3.2 of the Note.

 

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion. 

 

(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion. 

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system. 

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder  


8% CONVERTIBLE PROMISSORY NOTE | 3


$500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization. 

 

(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares  


8% CONVERTIBLE PROMISSORY NOTE | 4


(or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144. 

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur:

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder. 

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder. 

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith  


8% CONVERTIBLE PROMISSORY NOTE | 5


(including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower. 

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange. 

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business. 

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due. 

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement. 

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement (including but not limited to the provision to irrevocably reserve shares of Common Stock in the Reserved Amount) signed by the successor transfer agent to Borrower and the Borrower. 

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder. 

 

Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL


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BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect.

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available. 

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:

Raadr, Inc.

7950 E. Redfield Road, Unit 210, Scottsdale, Arizona 85260

Attention: Chief Executive Officer

E-mail: ir@raadr.com

 

If to the Holder:

FirstFire Global Opportunity Fund, LLC

1040 1st Avenue, New York, New York 10022

Attention: Eli Fireman, Managing Member


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E-mail: eli@firstfirecap.com

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 

 

4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower. 

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees. 

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada . The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement. 

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on October 1, 2024.

 

RAADR, INC.

 

By: /s/ Jacob DiMartino

Jacob DiMartino

Chief Executive Officer

 


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EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of Raadr, Inc., a Nevada corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of October 1, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any.

 

Box Checked as to applicable instructions:

 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 

 

Name of DTC Prime Broker: _______________________________________________________

Account Number: ________________________________________________________________

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion:

 

Applicable Conversion Price:

$

Number of shares of common stock to be issued

pursuant to conversion of the Notes:

 

Amount of Principal Balance due remaining

under the Note after this conversion:

 

 

[ Name of Holder ]

 

By: _________________________

 

 

 

 

 

 

 

 

 


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SUBSCRIPTION AGREEMENT

Telvantis, Inc.

(formerly Raadr, Inc.)

 

NOTICE TO INVESTORS

 

The securities of Telvantis, Inc., formerly Raadr, Inc., a Nevada corporation (the “Company”), to which this Subscription Agreement relates, represent an investment that involves a high degree of risk, suitable only for persons who can bear the economic risk for an indefinite period of time and who can afford to lose their entire investments. Investors should further understand that this investment is illiquid and is expected to continue to be illiquid for an indefinite period of time. No public market exists for the securities to which this Subscription Agreement relates.

 

The securities offered hereby have not been registered under the Securities Act of 1933, as amended (the “Securities Act”), or any state securities or blue sky laws and are being offered and sold in reliance on exemptions from the registration requirements of the Securities Act and state securities or blue sky laws. Although an Offering Statement has been filed with the Securities and Exchange Commission (the “SEC”), that Offering Statement does not include the same information that would be included in a Registration Statement under the Securities Act. The securities offered hereby have not been approved or disapproved by the SEC, any state securities commission or other regulatory authority, nor have any of the foregoing authorities passed upon the merits of the offering to which this Subscription Agreement relates or the adequacy or accuracy of this Subscription Agreement or any other materials or information made available to prospective investors in connection with the offering to which this Subscription Agreement. Any representation to the contrary is unlawful.

 

The securities offered hereby cannot be sold or otherwise transferred, except in compliance with the Securities Act. In addition, the securities offered hereby cannot be sold or otherwise transferred, except in compliance with applicable state securities or “blue sky” laws. Investors who are not “accredited investors” (as that term is defined in Section 501 of Regulation D promulgated under the Securities Act) are subject to limitations on the amount they may invest, as described in Section 4(g) of this Subscription Agreement.

 

To determine the availability of exemptions from the registration requirements of the Securities Act as such may relate to the offering to which this Subscription Agreement relates, the Company is relying on each investor’s representations and warranties included in this Subscription Agreement and the other information provided by each investor in connection herewith.

 

Prospective investors may not treat the contents of this Subscription Agreement, the Offering Circular or any of the other materials provided by the Company (collectively, the “Offering Materials”), or any prior or subsequent communications from the Company or any of its officers, employees or agents (including “Testing the Waters” materials), as investment, legal or tax advice. In making an investment decision, investors must rely on their own examinations of the Company and the terms of the offering to which this Subscription Agreement relates, including the merits and the risks involved. Each prospective investor should consult such investor’s own counsel, accountants and other professional advisors as to investment, legal, tax and other related matters concerning such investor’s proposed investment in the Company.

 

The Offering Materials may contain forward-looking statements and information relating to, among other things, the Company, its business plan, its operating strategy and its industries. These forward-looking statements are based on the beliefs of, assumptions made by, and information currently available to, the Company’s management. When used in the Offering Materials, the words “estimate,” “project,” “believe,” “anticipate,” “intend,” “expect” and similar expressions are intended to identify forward-looking statements, which constitute forward looking statements. These statements reflect management’s current views with respect to future events and are subject to risks and uncertainties that could cause the Company’s actual results to differ materially from those contained in the forward-looking statements. Investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date on which they are made. The Company does not undertake any obligation to revise or update these forward-looking statements to reflect events or circumstances after such date or to reflect the occurrence of unanticipated events.



SUBSCRIPTION AGREEMENT

 

This subscription agreement (the “Subscription Agreement” or the “Agreement”) is entered into by and between Telvantis, Inc., formerly Raadr, Inc. a Nevada corporation (the “Company”), and the undersigned investor (“Investor”), as of the date set forth on the signature page hereto. Any term used but not defined herein shall have the meaning set forth in the Offering Circular (defined below). 

 

RECITALS

 

WHEREAS, the Company is offering for sale a maximum of 1,500,000,000 shares of its common stock (the “Offered Shares”), pursuant to Tier 1 of Regulation A promulgated under the Securities Act (the “Offering”) at a fixed price of $0.005 per share (the “Share Purchase Price”), on a best-efforts basis.

 

WHEREAS, Investor desires to acquire that number of Offered Shares (the “Subject Offered Shares”) as set forth on the signature page hereto at the Share Purchase Price.

 

WHEREAS, the Offering will terminate at the earlier of: (a) the date on which all of the securities offered in the Offering shall have been sold, (b) the date which is one year from the Offering having been qualified by the SEC or (c) the date on which the Offering is earlier terminated by the Company, in its sole discretion (in each case, the “Termination Date”).

 

NOW, THEREFORE, for and in consideration of the premises and the mutual covenants hereinafter set forth, the parties hereto do hereby agree as follows: 

 

INVESTOR INFORMATION

Name of Investor

 

SSN or EIN

 

Street Address

 

City

 

State

 

Zip Code

 

Phone

 

E-mail

 

State/Nation of Residency

 

Name and Title of Authorized Representative, if investor is an entity or custodial account

 

Type of Entity or Custodial Account (IRA, Keogh, corporation, partnership, trust, limited liability company, etc.)

 

Jurisdiction of Organization

 

Date of Organization

Account Number

CHECK ONE:

 

Individual Investor

 

Custodian Entity

 

Tenants-in-Common

 

 

 

Community Property

 

Corporation

 

Joint Tenants

 

 

 

LLC

 

Partnership

 

Trust

 

If the Subject Offered Shares are intended to be held as Community Property, as Tenants-In-Common or as Joint Tenancy, then each party (owner) must execute this Subscription Agreement.

 

1.Subscription. 

 

(a)Investor hereby irrevocably subscribes for, and agrees to purchase, the Subject Offered Shares set forth on the signature page hereto at the Share Purchase Price, upon the terms and conditions set forth herein. The aggregate purchase price for the Subject Offered Shares subscribed by Investor (the “Purchase Price”) is payable to the Company in the manner provided in Section 2(a). 

 

(b)Investor understands that the Offered Shares are being offered pursuant to the Offering Circular dated ________, 2024, and its exhibits (collectively, the “Offering Circular”), as filed with the SEC. By subscribing for the Subject Offered Shares, Investor acknowledges that Investor has received and reviewed a copy of the Offering Circular and any other information required by Investor to make an investment decision with respect to the Subject Offered Shares. 



(c)This Subscription Agreement may be accepted or rejected in whole or in part, for any reason or for no reason, at any time prior to the Termination Date, by the Company in its sole and absolute discretion. The Company will notify Investor whether this Subscription Agreement is accepted or rejected. If rejected, Investor’s payment shall be returned to Investor without interest and all of Investor’s obligations hereunder shall terminate, except for Section 5 hereof, which shall remain in force and effect. 

 

(d)The terms of this Subscription Agreement shall be binding upon Investor and Investor’s permitted transferees, heirs, successors and assigns (collectively, the “Transferees”); provided, however, that for any such transfer to be deemed effective, the proposed Transferee shall have executed and delivered to the Company, in advance, an instrument in form acceptable to the Company in its sole discretion, pursuant to which the proposed Transferee shall acknowledge and agree to be bound by the representations and warranties of Investor and the terms of this Subscription Agreement. No transfer of this Agreement may be made without the consent of the Company, which consent may be withheld by the Company in its sole and absolute discretion. 

 

2.Payment and Purchase Procedure. The Purchase Price shall be paid simultaneously with Investor’s delivery of this Subscription Agreement. Investor shall deliver payment of the Purchase Price of the Subject Offered Shares in the manner set forth in Section 8 hereof. Investor acknowledges that, in order to subscribe for Offered Shares, Investor must comply fully with the purchase procedure requirements set forth in Section 8 hereof. 

 

3.Representations and Warranties of the Company. The Company represents and warrants to Investor that each of the following is true and complete in all material respects as of the date of this Subscription Agreement: 

 

(a)the Company is a corporation duly formed, validly existing and in good standing under the laws of the State of Nevada. The Company has all requisite power and authority to own and operate its properties and assets, to execute and deliver this Subscription Agreement, the Subject Offered Shares and any other agreements or instruments required hereunder. The Company is duly qualified and is authorized to do business and is in good standing as a foreign corporation in all jurisdictions in which the nature of its activities and of its properties (both owned and leased) makes such qualification necessary, except for those jurisdictions in which failure to do so would not have a material adverse effect on the Company or its business; 

 

(b)The issuance, sale and delivery of the Subject Offered Shares in accordance with this Subscription Agreement have been duly authorized by all necessary corporate action on the part of the Company. The Subject Offered Shares, when issued, sold and delivered against payment therefor in accordance with the provisions of this Subscription Agreement, will be duly and validly issued, fully paid and non-assessable; and 

 

(c)the acceptance by the Company of this Subscription Agreement and the consummation of the transactions contemplated hereby are within the Company’s powers and have been duly authorized by all necessary corporate action on the part of the Company. Upon the Company’s acceptance of this Subscription Agreement, this Subscription Agreement shall constitute a valid and binding agreement of the Company, enforceable against the Company in accordance with its terms, except (1) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (2) as limited by general principles of equity that restrict the availability of equitable remedies. 

 

4.Representations and Warranties of Investor. Investor represents and warrants to the Company that each of the following is true and complete in all material respects as of the date of this Subscription Agreement: 

 

(a)Requisite Power and Authority. Investor has all necessary power and authority under all applicable provisions of law to execute and deliver this Subscription Agreement and to carry out the provisions hereof. Upon due delivery hereof, this Subscription Agreement will be a valid and binding obligation of Investor, enforceable in accordance with its terms, except (1) as limited by applicable bankruptcy, insolvency, reorganization, moratorium or other laws of general application affecting enforcement of creditors’ rights and (2) as limited by general principles of equity that restrict the availability of equitable remedies. 

 

(b)Company Offering Circular; Company Information. Investor acknowledges the public availability of the Offering Circular which can be viewed on the SEC Edgar Database, under CIK number 0001384365 and that Investor has reviewed the Offering Circular. Investor acknowledges that the Offering Circular makes clear the terms and conditions of the Offering and that the risks associated therewith are described. Investor has had an opportunity to discuss the Company’s business, management and financial affairs with directors, officers and management of the Company and has had the opportunity to review the Company’s operations and facilities. Investor has also had the opportunity to ask questions of, and receive answers from, the Company and its management regarding the terms and conditions of the Offering. Investor acknowledges that, except as set forth herein, no representations or warranties have been made to Investor, or to any advisor or representative of Investor, by the Company with respect to the business or prospects of the Company or its financial condition. 

 

(c)Investment Experience; Investor Suitability. Investor has sufficient experience in financial and business matters so as to be capable of evaluating the merits and risks of an investment in the Offered Shares, and to make an informed decision relating thereto. Alternatively, Investor has utilized the services of a purchaser representative and, together, they have sufficient  



experience in financial and business matters so as to be capable of evaluating the merits and risks of an investment in the Offered Shares, and to make an informed decision relating thereto. Investor has evaluated the risks of an investment in the Offered Shares, including those described in the section of the Offering Circular entitled “Risk Factors”, and has determined that such an investment is suitable for Investor. Investor has adequate financial resources for an investment of this character. Investor is capable of bearing a complete loss of Investor’s investment in the Offered Shares.

 

(d)No Registration. Investor understands that the Offered Shares are not being registered under the Securities Act, on the ground that the issuance thereof is exempt under Regulation A promulgated under the Securities Act, and that reliance on such exemption is predicated, in part, on the truth and accuracy of Investor’s representations and warranties, and those of the other purchasers of the Offered Shares in the Offering. 

 

Investor further understands that the Offered Shares are not being registered under the securities laws of any state, on the basis that the issuance thereof is exempt as an offer and sale not involving a registrable public offering in such state. 

 

Investor covenants not to sell, transfer or otherwise dispose of any Offered Shares, unless such Offered Shares have been registered under the Securities Act and under applicable state securities laws, or exemptions from such registration requirements are available. 

 

(e)Illiquidity and Continued Economic Risk. Investor acknowledges and agrees that there is a limited public market for the Offered Shares and that there is no guarantee that a market for their resale will continue to exist. Investor must, therefore, bear the economic risk of the investment in the Subject Offered Shares indefinitely and Investor acknowledges that Investor is able to bear the economic risk of losing Investor’s entire investment in the Subject Offered Shares. 

 

(f)Investor Status. Investor represents that either: 

 

(1)Investor has a minimum annual gross income of $70,000 and a minimum net worth of $70,000, exclusive of automobile, home and home furnishings; or 

 

(2)Investor has a minimum net worth of $250,000, exclusive of automobile, home and home furnishings. 

 

Investor represents that, to the extent Investor has any questions with respect to Investor’s satisfying the standards set forth in subparagraphs (1) and (2), Investor has sought professional advice. 

 

(g)Investor Information. Within five (5) days after receipt of a request from the Company, Investor hereby agrees to provide such information with respect to Investor’s status as a Company shareholder and to execute and deliver such documents as may reasonably be necessary to comply with any and all laws and regulations to which the Company is, or may become, subject, including, without limitation, the need to determine the accredited investor status of the Company’s shareholders. Investor further agrees that, in the event Investor transfers any Offered Shares, Investor will require the transferee of any such Offered Shares to agree to provide such information to the Company as a condition of such transfer. 

 

(h)Valuation; Arbitrary Determination of Share Purchase Price by the Company. Investor acknowledges that the Share Purchase Price of the Offered Shares in the Offering was set by the Company on the basis of the Company’s internal valuation and no warranties are made as to value. Investor further acknowledges that future offerings of securities of the Company may be made at lower valuations, with the result that Investor’s investment will bear a lower valuation. 

 

(i)Domicile. Investor maintains Investor’s domicile (and is not a transient or temporary resident) at the address provided herein. 

 

(j)Foreign Investors. If Investor is not a United States person (as defined by Section 7701(a)(30) of the Internal Revenue Code of 1986, as amended), Investor hereby represents that Investor is in full compliance with the laws of Investor’s jurisdiction in connection with any invitation to subscribe for the Offered Shares or any use of this Subscription Agreement, including, without limitation, (1) the legal requirements within Investor’s jurisdiction for the purchase of the Subject Offered Shares, (2) any foreign exchange restrictions applicable to such purchase, (3) any governmental or other consents that may need to be obtained, and (4) the income tax and other tax consequences, if any, that may be relevant to the purchase, holding, redemption, sale or transfer of the Subject Offered Shares. Investor’s subscription and payment for and continued beneficial ownership of the Subject Offered Shares will not violate any applicable securities or other laws of Investor’s jurisdiction. 

 

(k)Fiduciary Capacity. If Investor is purchasing the Subject Offered Shares in a fiduciary capacity for another person or entity, including, without limitation, a corporation, partnership, trust or any other juridical entity, Investor has been duly authorized and empowered to execute this Subscription Agreement and all other related documents. Upon request of the Company,  



Investor will provide true, complete and current copies of all relevant documents creating Investor, authorizing Investor’s investment in the Company and/or evidencing the satisfaction of the foregoing.

 

5.Indemnity. The representations, warranties and covenants made by Investor herein shall survive the consummation of this Subscription Agreement. Investor agrees to indemnify and hold harmless the Company and its officers, directors and agents, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act, against any and all loss, liability, claim, damage and expense whatsoever (including, but not limited to, any and all reasonable attorneys’ fees, including attorneys’ fees on appeal) and expenses reasonably incurred in investigating, preparing or defending against any false representation or warranty or breach of failure by Investor to comply with any covenant or agreement made by Investor herein or in any other document furnished by Investor to any of the foregoing in connection with the transaction contemplated hereby. 

 

6.Governing Law; Jurisdiction; Waiver of Jury Trial. All questions concerning the construction, validity, enforcement and interpretation of the Offering Circular, including, without limitation, this Subscription Agreement, shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflicts of law thereof. 

 

7.Notices. Notice, requests, demands and other communications relating to this Subscription Agreement and the transactions contemplated herein shall be in writing and shall be deemed to have been duly given if and when (a) delivered personally, on the date of such delivery; or (b) mailed by registered or certified mail, postage prepaid, return receipt requested, in the third day after the posting thereof; or (c) e-mailed on the date of such delivery to the address of the respective parties as follows, if to the Company, to Telvantis, Inc. (formerly Raadr, Inc.), 1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139, Attention: Daniel Contreras, Chief Executive Officer. If to Investor, at Investor’s address supplied in connection herewith, or to such other address as may be specified by written notice from time to time by the party entitled to receive such notice. Any notices, requests, demands or other communications by email shall be confirmed by letter given in accordance with (a) or (b) above. 

 

8.Purchase Procedure. Investor acknowledges that, in order to subscribe for the Subject Offered Shares, Investor must, and Investor does hereby, deliver (in a manner described below) to the Company: 

 

(a)a single executed counterpart of the Subscription Agreement, which shall be delivered to the Company either by (1) physical delivery to: Telvantis, Inc. (formerly Raadr, Inc.), Attention: Daniel Contreras, Chief Executive Officer, 1680 Michigan Avenue, Suite 700, Miami Beach, Florida 33139; (2) e-mail to: dcontreras@telvantis.com; and 

 

(b)payment of the Purchase Price, which shall be delivered in the manner set forth in Annex I attached hereto and made a part hereof. 

 

9.Miscellaneous. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, neuter, singular or plural, as the identity of the person or persons or entity or entities may require. Other than as set forth herein, this Subscription Agreement is not transferable or assignable by Investor. The representations, warranties and agreements contained herein shall be deemed to be made by, and be binding upon, Investor and Investor’s heirs, executors, administrators and successors and shall inure to the benefit of the Company and its successors and assigns. None of the provisions of this Subscription Agreement may be waived, changed or terminated orally or otherwise, except as specifically set forth herein or except by a writing signed by the Company and Investor. In the event any part of this Subscription Agreement is found to be void or unenforceable, the remaining provisions are intended to be separable and binding with the same effect as if the void or unenforceable part were never in this Subscription Agreement. This Subscription Agreement supersedes all prior discussions and agreements between the Company and Investor, if any, with respect to the subject matter hereof and contains the sole and entire agreement between the Company and Investor with respect to the subject matter hereof. The terms and provisions of this Subscription Agreement are intended solely for the benefit of each party hereto and their respective successors and assigns, and it is not the intention of the parties to confer, and no provision hereof shall confer, third-party beneficiary rights upon any other person. The headings used in this Subscription Agreement have been inserted for convenience of reference only and do not define or limit the provisions hereof. In the event that either party hereto shall commence any suit, action or other proceeding to interpret this Subscription Agreement, or determine to enforce any right or obligation created hereby, then such party, if it prevails in such action, shall recover its reasonable costs and expenses incurred in connection therewith, including, but not limited to, reasonable attorneys’ fees and expenses and costs of appeal, if any. All notices and communications to be given or otherwise made to Investor shall be deemed to be sufficient if sent by e-mail to such address provided by Investor herein. Unless otherwise specified in this Subscription Agreement, Investor shall send all notices or other communications required to be given hereunder to the Company via e-mail at dcontreras@telvantis.com. Any such notice or communication shall be deemed to have been delivered and received on the first business day following that on which the e-mail has been sent (assuming that there is no error in delivery). As used in this Section 9, the term “business day” shall mean any day other than a day on which banking institutions in the State of Nevada are legally closed for business. This Subscription Agreement may be executed in one or more counterparts. No failure or delay by any party in exercising any right, power or privilege under this Subscription Agreement shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law. 



10.Consent to Electronic Delivery of Notices, Disclosures and Forms. Investor understands that, to the fullest extent permitted by law, any notices, disclosures, forms, privacy statements, reports or other communications (collectively, “Communications”) regarding the Company, Investor’s investment in the Company and the Subject Offered Shares (including annual and other updates and tax documents) may be delivered by electronic means, such as by e-mail. Investor hereby consents to electronic delivery as described in the preceding sentence. In so consenting, Investor acknowledges that e-mail messages are not secure and may contain computer viruses or other defects, may not be accurately replicated on other systems or may be intercepted, deleted or interfered with, with or without the knowledge of the sender or the intended recipient. Investor also acknowledges that an e-mail from the Company may be accessed by recipients other than Investor and may be interfered with, may contain computer viruses or other defects and may not be successfully replicated on other systems. Neither the Company, nor any of its respective officers, directors and affiliates, and each other person, if any, who controls the Company within the meaning of Section 15 of the Securities Act (collectively, the “Company Parties”), gives any warranties in relation to these matters. Investor further understands and agrees to each of the following: (a) other than with respect to tax documents in the case of an election to receive paper versions, none of the Company Parties will be under any obligation to provide Investor with paper versions of any Communications; (b) electronic Communications may be provided to Investor via e-mail or a website of a Company Party upon written notice of such website’s internet address to such Investor. In order to view and retain the Communications, Investor’s computer hardware and software must, at a minimum, be capable of accessing the Internet, with connectivity to an internet service provider or any other capable communications medium, and with software capable of viewing and printing a portable document format (“PDF”) file created by Adobe Acrobat. Further, Investor must have a personal e-mail address capable of sending and receiving e-mail messages to and from the Company Parties. To print the documents, Investor will need access to a printer compatible with his or her hardware and the required software; (c) if these software or hardware requirements change in the future, a Company Party will notify the Investor through written notification. To facilitate these services, Investor must provide the Company with his or her current e-mail address and update that information as necessary. Unless otherwise required by law, Investor will be deemed to have received any electronic Communications that are sent to the most current e-mail address that the Investor has provided to the Company in writing; (d) none of the Company Parties will assume liability for non-receipt of notification of the availability of electronic Communications in the event Investor’s e-mail address on file is invalid; Investor’s e-mail or Internet service provider filters the notification as “spam” or “junk mail”; there is a malfunction in Investor’s computer, browser, internet service or software; or for other reasons beyond the control of the Company Parties; and (e) solely with respect to the provision of tax documents by a Company Party, Investor agrees to each of the following: (1) if Investor does not consent to receive tax documents electronically, a paper copy will be provided, and (2) Investor’s consent to receive tax documents electronically continues for every tax year of the Company until Investor withdraws its consent by notifying the Company in writing. 

 

Investor certifies that Investor has read this entire Subscription Agreement and that every statement made by Investor herein is true and complete.

 

The Company may not be offering the Offered Shares in every state. The Offering Materials do not constitute an offer or solicitation in any state or jurisdiction in which the Offered Shares are not being offered. The information presented in the Offering Materials was prepared by the Company solely for the use by prospective investors in connection with the Offering. Nothing contained in the Offering Materials is or should be relied upon as a promise or representation as to the future performance of the Company.

 

The Company reserves the right, in its sole discretion and for any reason whatsoever, to modify, amend and/or withdraw all or a portion of the Offering and/or accept or reject, in whole or in part, for any reason or for no reason, any prospective investment in the Offered Shares. Except as otherwise indicated, the Offering Materials speak as of their date. Neither the delivery nor the purchase of the Offered Shares shall, under any circumstances, create any implication that there has been no change in the affairs of the Company since that date.

 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 



 

[ SIGNATURE PAGE TO SUBSCRIPTION AGREEMENT ]

 

IN WITNESS WHEREOF, the undersigned has executed this Subscription Agreement on the date set forth below. 

 

Dated: _______________________. 

 

 

INDIVIDUAL INVESTOR

 

 

 

 

 

 

$

 

 

(Signature)

 

(Subscription Amount)

 

 

 

 

 

 

 

(Printed Name)

 

(Number of Offered Shares Subscribed)

 

 

CORPORATION/LLC/TRUST INVESTOR

 

 

 

 

 

 

$

 

 

(Name of Corporation/LLC/Trust)

 

(Subscription Amount)

 

 

 

(Signature)

 

 

 

 

 

 

(Number of Offered Shares Subscribed)

 

 

(Printed Name)

 

 

 

 

 

 

 

 

 

(Title)

 

 

 

 

PARTNERSHIP INVESTOR

 

 

 

 

 

 

$

 

 

(Name of Partnership)

 

(Subscription Amount)

 

 

 

(Signature)

 

 

 

 

 

 

(Number of Offered Shares Subscribed)

 

 

(Printed Name)

 

 

 

 

 

 

 

 

 

(Title)

 

 

 

 

COMPANY ACCEPTANCE

 

 

The foregoing subscription for ____________ Offered Shares, a Subscription Amount of $______________, is hereby accepted

 

on behalf of Telvantis, Inc., formerly Raadr, Inc., a Nevada corporation, this ______ day of ______________, 202__.

 

ADIA NUTRITION, INC. 

 

 

By: _______________________ 

Daniel Contreras 

Chief Executive Officer 



STOCK CANCELLATION, DEBT ASSIGNMENT

AND TRANSFER AGREEMENT

 

This Stock Cancellation, Debt Assignment and Transfer Agreement (the “Agreement”) is entered into as of this 18th day of September, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Signature Apps, Inc., a Colorado corporation wholly owned by RDAR (“Signature”), and Dean Richards (“Shareholder”). (RDAR, Signature and Shareholder are referred to as the “Parties”). 

 

RECITALS

 

WHEREAS, Shareholder owns 500,000,000 shares of RDAR common stock (the “RDAR Shares”) and RDAR owes Shareholder a total of $100,000.00 in principal and accrued interest on loans (the “Shareholder Loan Amount”) made to RDAR prior to the date of this Agreement, which Shareholder Loan Amount is not the subject of a promissory note or similar instrument in favor of Shareholder;

 

WHEREAS, RDAR is a publicly-traded company that has entered into certain acquisition agreements (the “2024 Agreements”) that require, as a condition to their closing, RDAR and Shareholder to have entered into this Agreement; and

 

WHEREAS, as a post-closing condition to the 2024 Agreements, RDAR is to divest of Signature by transferring all of its ownership of Signature (the “Divestiture”) to a separate publicly trading “shell” company (the “Transferee Company”), the control person of which is to be Jacob DiMartino; and

 

WHEREAS, the Transferee Company is to continue and build upon the current business of RDAR; and

 

WHEREAS, the intention of RDAR and Signature is that Shareholder will, upon the completion of the Divestiture, own two percent (2%) of the Transfer Company, to hold a convertible promissory note in the principal amount equal to the Shareholder Loan Amount and to have contractual rights to have the shares of common stock of the Transferee Company underlying the Transferee Company Note qualified in a Regulation A offering.

 

NOW, THEREFORE, in consideration of the promises and covenants contained herein, RDAR, Signature and Shareholder agree as follows: 

 

1.Recitals. The above recitals are true and correct and incorporated by reference herein. 

 

2.Cancellation of RDAR Shares. In consideration of RDAR’s and Signature’s entering into this Agreement, Shareholder hereby agrees to the cancellation of the RDAR Shares, effective immediately upon the closing of the 2024 Agreements (the “Effective Time”).  


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 1



Shareholder agrees that Shareholder shall deliver to RDAR, on the Effective Time, an Irrevocable Stock Power in the form of Exhibit A attached hereto. RDAR and Shareholder agree that the RDAR Shares were issued digitally and are held in book entry in the name of Shareholder at the transfer agent of RDAR.

 

3.Issuances of Promissory Notes. In consideration of Shareholder’s entering into this Agreement, on the Effective Time, Signature shall issue and deliver to Shareholder a promissory note (the “Signature Note”) in the Shareholder Loan Amount, in the form of as Exhibit B attached hereto. 

 

In further consideration of Shareholder’s entering into this Agreement, Signature shall cause Transferee Company take the following actions on the date on which Transferee Company takes ownership of Signature: 

 

(a) to issue and deliver to Shareholder a convertible promissory note (the “Transferee Company Note”) in the Shareholder Loan Amount, in the form of Exhibit C attached hereto, in exchange for the Signature Note; and 

 

(b) to issue equity securities of Transferee Company representing three percent (3%) ownership of Transferee Company. 

 

4.Consent to Transfer of Debt. In consideration of RDAR’s and Signature’s entering into this Agreement, Shareholder agrees and consents to RDAR’s assigning the debt, including the repayment obligation associated therewith (the “Debt Assignment”), represented by the Shareholder Loan Amount to Signature. The Debt Assignment shall be deemed to have occurred at the Effective Time. 

 

5.Miscellaneous. 

 

5.1.Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing, and shall be deemed to have been duly given when delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the Parties hereto at their last known addresses. Either party may change his or its address for the purpose of this paragraph by written notice similarly given. 

 

5.2.Entire Agreement. This Agreement represents the entire Agreement between the parties in relation to the subject matter hereof and supersedes all prior agreements between such parties relating to such subject matter. 

 

5.3.Amendment of Agreement. This Agreement may be altered or amended, in whole or in part, only in writing signed by the party against whom enforcement is sought. 

 

5.4.Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other subsequent breach or condition, whether of a like or different nature. 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 2



5.5.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. 

 

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

 

5.7.Severability. If any provision of this Agreement shall be held to be invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall not in any way affect or render invalid or unenforceable any other provision of this Agreement and this Agreement shall be carried out as if such invalid or unenforceable provision were not contained herein. 

 

5.8.Multiple Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one (1) instrument. 

 

5.9.Facsimile Signatures. A facsimile signature of each or any party to this Agreement shall have the same force and effect as an original signature and shall be binding. 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 

 

 

 

 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 3



[ Signature Page to Stock Cancellation, Debt Assignment and Transfer Agreement ]

 

 

IN WITNESS WHEREOF, the Parties have executed this agreement as of the date first written above. 

 

RDAR: 

 

RAADR, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino

Chief Executive Officer

 

SIGNATURE: 

 

SIGNATURE APPS, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino

Chief Executive Officer

 

SHAREHOLDER: 

 

 

/s/ Dean Richards 

Dean Richards 

 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 4



EXHIBIT A

 

Form of Irrevocable Stock Power

 

 

 

IRREVOCABLE STOCK POWER

 

FOR VALUE RECEIVED, the undersigned, Dean Richards, does (do) hereby sell, assign and transfer to 

 

 

 

 

 

(SOCIAL SECURITY OR

TAXPAYER IDENTIFYING NO.)

 

500,000,000 shares of the Common Stock of Raadr, Inc., a Nevada corporation, represented digitally on the books of said Company and standing in the name of the undersigned on the books of said Company. 

The undersigned does hereby irrevocably institute and appoint Jacob DiMartino Attorney to transfer the said stock on the books of said Company, with full power of substitution in the premises. 

Dated: September _____, 2024.

 

 

EXEMPLAR 

_____________________________________ 

Dean Richards 

 

ACKNOWLEDGMENT

 

Before me, the undersigned authority, on this day personally appeared Dean Richards, known to me to be the person whose name is subscribed to the foregoing Irrevocable Stock Power, and acknowledged to me that she executed such Irrevocable Stock Power. 

 

Given under my hand and seal of office this ______ day of _______, 2024. 

 

 

 

_____________________________________ 

Notary Public 

 

 

 

 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 5



EXHIBIT B

 

Form of Signature Note

 

 

 

THESE SECURITIES, INCLUDING THE SECURITIES INTO WHICH THEY MAY BE CONVERTED, HAVE BEEN ISSUED IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION AFFORDED BY SECTION 4(2) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT ANY SUCH PROPOSED TRANSFER IS IN ACCORDANCE WITH ALL APPLICABLE LAWS, RULES AND REGULATIONS.

 

PROMISSORY NOTE

 

$100,000.00September ___, 2024 

 

FOR VALUE RECEIVED, Signature Apps, Inc., a Colorado corporation (“Maker”), the undersigned, promises, pursuant to the terms of this Promissory Note (the “Note”), to pay to Dean Richards (“Payee”) (Payee and any subsequent holders hereof are hereinafter referred to collectively as “Holder”), at such place, or places, as Holder may designate to Maker in writing from time to time, the amount of One Hundred Thousand and 00/100 Dollars ($100,000.00), together with interest thereon at the rate of eight percent (8%) per annum until paid, which shall be due and payable on September __, 2025 (the “Maturity Date”). 

 

The principal and accrued interest amounts hereunder may be prepaid in whole or in part, at any time and from time to time, without premium or penalty. 

 

All payments due pursuant to this Note shall be made in lawful money of the United States of America in immediately available funds, at the address of Payee indicated above, or such other place as Holder shall designate in writing to Maker. If any payment on this Note shall become due on a day which is not a Business Day (as hereinafter defined), such payment shall be made on the next succeeding Business Day and any payment made pursuant to the foregoing shall not be deemed late for purposes of assessing interest pursuant to the preceding paragraph. As used herein, the term “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed. 

 

As used herein, the terms “Maker” and “Payee” shall be deemed to include their respective successors, legal representatives, and assigns, whether by voluntary action of the parties or by operation of law. 

 

In the event this Note is placed in the hands of an attorney for collection, or if Holder incurs any costs incident to the collection of the indebtedness evidenced hereby, Maker and any endorsers hereof agree to pay to Holder an amount equal to all such costs, including without limitation all reasonable attorneys’ fees and all court costs. 

 

This Note shall be the obligation of all Makers, endorsers, guarantors and sureties, if any, as may exist now or hereafter in addition to Maker, and shall be binding upon them and their respective heirs, administrators, executors, legal representatives, successors, and assigns and shall inure to the benefit of Payee and his heirs, administrators, executors, legal representatives, successors and assigns. 

 

Notwithstanding any provision to the contrary contained herein or in any other document, it is expressly provided that in no case or event shall the aggregate of any amounts accrued or paid pursuant to this Note or any other document which, under applicable laws, are or may be deemed to constitute interest, ever exceed the maximum non-usurious interest rate permitted by applicable Iowa or federal laws, whichever permit the lower rate. In this connection, Maker and Payee stipulate and agree that it is their common and overriding intent to contract in strict compliance with applicable usury laws. In furtherance thereof, none of the terms of this Note shall ever be construed to create a contract to pay, as consideration for the use, forbearance or detention of money, interest at a rate in excess of the maximum rate permitted by applicable laws. Maker shall never be liable for interest in excess of the maximum rate permitted by applicable laws. If, for any reason whatever, such interest paid or received during  




the full term of the applicable indebtedness produces a rate which exceeds the maximum rate permitted by applicable laws, Holder shall credit against the principal of such indebtedness (or, if such indebtedness shall have been paid in full, shall refund to the payor of such interest) such portion of said interest as shall be necessary to cause the interest paid to produce a rate equal to the maximum rate permitted by applicable laws. All sums paid or agreed to be paid to Payee for the use, forbearance, or detention of money shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full term of the applicable indebtedness. The provisions of this paragraph shall control all agreements, whether now or hereafter existing and whether written or oral, between Maker and Payee.

 

THIS PROMISSORY NOTE AND ALL OTHER WRITTEN AGREEMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

SIGNATURE APPS, INC. 

 

EXEMPLAR 

By: _____________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT C

 

Form of Transferee Company Note

 

 

 

THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, ___________________, a __________ corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of _______________, or registered assigns (the “Holder”), the sum of $_______ together with any interest as set forth herein, on _________, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights

 

1.1Conversion Right. The Holder shall have the right from time to time, and at any time following the date of this Note and ending on the later of: (i) the Maturity Date, or (ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which  




the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 25% multiplied by the Market Price (as defined herein) (representing a discount rate of 75%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and  




(ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  

 

(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the  




fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  

 

(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or  




shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder. 

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith  




(including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  

 

Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER,  




IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:

_____________

_____________

Attention:  

E-mail:  

 

If to the Holder:

_____________

_____________

Attention:  




E-mail:  

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 

 

4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of _______ or in the federal courts located in _______, ______. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on ______, 2024. 

 

____________________ 

 

EXEMPLAR 

By: __________________________ 

Jacob DiMartino

Chief Executive Officer




EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of _____________, a ________ corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of _____________, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 



STOCK CANCELLATION, DEBT ASSIGNMENT

AND TRANSFER AGREEMENT

 

This Stock Cancellation, Debt Assignment and Transfer Agreement (the “Agreement”) is entered into as of this 18th day of September, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Signature Apps, Inc., a Colorado corporation wholly owned by RDAR (“Signature”), and Christina Upham (“Shareholder”). (RDAR, Signature and Shareholder are referred to as the “Parties”). 

 

RECITALS

 

WHEREAS, Shareholder owns 700,000,000 shares of RDAR common stock (the “RDAR Shares”) and RDAR owes Shareholder a total of $586,000.00 in principal and accrued interest on loans (the “Shareholder Loan Amount”) made to RDAR prior to the date of this Agreement, which Shareholder Loan Amount is not the subject of a promissory note or similar instrument in favor of Shareholder;

 

WHEREAS, RDAR is a publicly-traded company that has entered into certain acquisition agreements (the “2024 Agreements”) that require, as a condition to their closing, RDAR and Shareholder to have entered into this Agreement; and

 

WHEREAS, as a post-closing condition to the 2024 Agreements, RDAR is to divest of Signature by transferring all of its ownership of Signature (the “Divestiture”) to a separate publicly trading “shell” company (the “Transferee Company”), the control person of which is to be Jacob DiMartino; and

 

WHEREAS, the Transferee Company is to continue and build upon the current business of RDAR; and

 

WHEREAS, the intention of RDAR and Signature is that Shareholder will, upon the completion of the Divestiture, own five percent (5%) of the Transfer Company, to hold a convertible promissory note in the principal amount equal to the Shareholder Loan Amount and to have contractual rights to have the shares of common stock of the Transferee Company underlying the Transferee Company Note qualified in a Regulation A offering.

 

NOW, THEREFORE, in consideration of the promises and covenants contained herein, RDAR, Signature and Shareholder agree as follows: 

 

1.Recitals. The above recitals are true and correct and incorporated by reference herein. 

 

2.Cancellation of RDAR Shares. In consideration of RDAR’s and Signature’s entering into this Agreement, Shareholder hereby agrees to the cancellation of the RDAR Shares, effective immediately upon the closing of the 2024 Agreements (the “Effective Time”).  


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 1



Shareholder agrees that Shareholder shall deliver to RDAR, on the Effective Time, an Irrevocable Stock Power in the form of Exhibit A attached hereto. RDAR and Shareholder agree that the RDAR Shares were issued digitally and are held in book entry in the name of Shareholder at the transfer agent of RDAR.

 

3.Issuances of Promissory Notes. In consideration of Shareholder’s entering into this Agreement, on the Effective Time, Signature shall issue and deliver to Shareholder a promissory note (the “Signature Note”) in the Shareholder Loan Amount, in the form of as Exhibit B attached hereto. 

 

In further consideration of Shareholder’s entering into this Agreement, Signature shall cause Transferee Company take the following actions on the date on which Transferee Company takes ownership of Signature: 

 

(a) to issue and deliver to Shareholder a convertible promissory note (the “Transferee Company Note”) in the Shareholder Loan Amount, in the form of Exhibit C attached hereto, in exchange for the Signature Note; and 

 

(b) to issue equity securities of Transferee Company representing five percent (5%) ownership of Transferee Company. 

 

4.Consent to Transfer of Debt. In consideration of RDAR’s and Signature’s entering into this Agreement, Shareholder agrees and consents to RDAR’s assigning the debt, including the repayment obligation associated therewith (the “Debt Assignment”), represented by the Shareholder Loan Amount to Signature. The Debt Assignment shall be deemed to have occurred at the Effective Time. 

 

5.Miscellaneous. 

 

5.1.Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing, and shall be deemed to have been duly given when delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the Parties hereto at their last known addresses. Either party may change his or its address for the purpose of this paragraph by written notice similarly given. 

 

5.2.Entire Agreement. This Agreement represents the entire Agreement between the parties in relation to the subject matter hereof and supersedes all prior agreements between such parties relating to such subject matter. 

 

5.3.Amendment of Agreement. This Agreement may be altered or amended, in whole or in part, only in writing signed by the party against whom enforcement is sought. 

 

5.4.Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other subsequent breach or condition, whether of a like or different nature. 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 2



5.5.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. 

 

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

 

5.7.Severability. If any provision of this Agreement shall be held to be invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall not in any way affect or render invalid or unenforceable any other provision of this Agreement and this Agreement shall be carried out as if such invalid or unenforceable provision were not contained herein. 

 

5.8.Multiple Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one (1) instrument. 

 

5.9.Facsimile Signatures. A facsimile signature of each or any party to this Agreement shall have the same force and effect as an original signature and shall be binding. 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 

 

 

 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 3



[ Signature Page to Stock Cancellation, Debt Assignment and Transfer Agreement ]

 

 

IN WITNESS WHEREOF, the Parties have executed this agreement as of the date first written above. 

 

RDAR: 

 

RAADR, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino

Chief Executive Officer

 

SIGNATURE: 

 

SIGNATURE APPS, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino

Chief Executive Officer

 

SHAREHOLDER: 

 

 

/s/ Christina Upham 

Christina Upham 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 4



EXHIBIT A

 

Form of Irrevocable Stock Power

 

 

 

IRREVOCABLE STOCK POWER

 

FOR VALUE RECEIVED, the undersigned, Christina Upham, does (do) hereby sell, assign and transfer to 

 

 

 

 

 

(SOCIAL SECURITY OR

TAXPAYER IDENTIFYING NO.)

 

700,000,000 shares of the Common Stock of Raadr, Inc., a Nevada corporation, represented digitally on the books of said Company and standing in the name of the undersigned on the books of said Company. 

The undersigned does hereby irrevocably institute and appoint Jacob DiMartino Attorney to transfer the said stock on the books of said Company, with full power of substitution in the premises. 

Dated: September _____, 2024.

 

 

EXEMPLAR 

___________________________________ 

Christina Upham 

 

ACKNOWLEDGMENT

 

Before me, the undersigned authority, on this day personally appeared Christina Upham, known to me to be the person whose name is subscribed to the foregoing Irrevocable Stock Power, and acknowledged to me that she executed such Irrevocable Stock Power. 

 

Given under my hand and seal of office this __________ day of _________, 2024. 

 

 

 

_________________________________ 

Notary Public 

 

 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 5



EXHIBIT B

 

Form of Signature Note

 

 

 

THESE SECURITIES, INCLUDING THE SECURITIES INTO WHICH THEY MAY BE CONVERTED, HAVE BEEN ISSUED IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION AFFORDED BY SECTION 4(2) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT ANY SUCH PROPOSED TRANSFER IS IN ACCORDANCE WITH ALL APPLICABLE LAWS, RULES AND REGULATIONS.

 

PROMISSORY NOTE

 

$586,000.00September ___, 2024 

 

FOR VALUE RECEIVED, Signature Apps, Inc., a Colorado corporation (“Maker”), the undersigned, promises, pursuant to the terms of this Promissory Note (the “Note”), to pay to Christina Upham (“Payee”) (Payee and any subsequent holders hereof are hereinafter referred to collectively as “Holder”), at such place, or places, as Holder may designate to Maker in writing from time to time, the amount of Five Hundred Eighty-Six Thousand and 00/100 Dollars ($586,000.00), together with interest thereon at the rate of eight percent (8%) per annum until paid, which shall be due and payable on September __, 2025 (the “Maturity Date”). 

 

The principal and accrued interest amounts hereunder may be prepaid in whole or in part, at any time and from time to time, without premium or penalty. 

 

All payments due pursuant to this Note shall be made in lawful money of the United States of America in immediately available funds, at the address of Payee indicated above, or such other place as Holder shall designate in writing to Maker. If any payment on this Note shall become due on a day which is not a Business Day (as hereinafter defined), such payment shall be made on the next succeeding Business Day and any payment made pursuant to the foregoing shall not be deemed late for purposes of assessing interest pursuant to the preceding paragraph. As used herein, the term “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed. 

 

As used herein, the terms “Maker” and “Payee” shall be deemed to include their respective successors, legal representatives, and assigns, whether by voluntary action of the parties or by operation of law. 

 

In the event this Note is placed in the hands of an attorney for collection, or if Holder incurs any costs incident to the collection of the indebtedness evidenced hereby, Maker and any endorsers hereof agree to pay to Holder an amount equal to all such costs, including without limitation all reasonable attorneys’ fees and all court costs. 

 

This Note shall be the obligation of all Makers, endorsers, guarantors and sureties, if any, as may exist now or hereafter in addition to Maker, and shall be binding upon them and their respective heirs, administrators, executors, legal representatives, successors, and assigns and shall inure to the benefit of Payee and his heirs, administrators, executors, legal representatives, successors and assigns. 

 

Notwithstanding any provision to the contrary contained herein or in any other document, it is expressly provided that in no case or event shall the aggregate of any amounts accrued or paid pursuant to this Note or any other document which, under applicable laws, are or may be deemed to constitute interest, ever exceed the maximum non-usurious interest rate permitted by applicable Iowa or federal laws, whichever permit the lower rate. In this connection, Maker and Payee stipulate and agree that it is their common and overriding intent to contract in strict compliance with applicable usury laws. In furtherance thereof, none of the terms of this Note shall ever be construed to create a contract to pay, as consideration for the use, forbearance or detention of money, interest at a rate in excess of the maximum rate permitted by applicable laws. Maker shall never be liable for interest in excess of the maximum rate permitted by applicable laws. If, for any reason whatever, such interest paid or received during  




the full term of the applicable indebtedness produces a rate which exceeds the maximum rate permitted by applicable laws, Holder shall credit against the principal of such indebtedness (or, if such indebtedness shall have been paid in full, shall refund to the payor of such interest) such portion of said interest as shall be necessary to cause the interest paid to produce a rate equal to the maximum rate permitted by applicable laws. All sums paid or agreed to be paid to Payee for the use, forbearance, or detention of money shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full term of the applicable indebtedness. The provisions of this paragraph shall control all agreements, whether now or hereafter existing and whether written or oral, between Maker and Payee.

 

THIS PROMISSORY NOTE AND ALL OTHER WRITTEN AGREEMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

SIGNATURE APPS, INC. 

 

EXEMPLAR 

By: _____________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT C

 

Form of Transferee Company Note

 

 

 

THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, ___________________, a __________ corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of _______________, or registered assigns (the “Holder”), the sum of $_______ together with any interest as set forth herein, on _________, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights

 

1.1Conversion Right. The Holder shall have the right from time to time, and at any time following the date of this Note and ending on the later of: (i) the Maturity Date, or (ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which  




the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 25% multiplied by the Market Price (as defined herein) (representing a discount rate of 75%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and  




(ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  

 

(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the  




fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  

 

(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or  




shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder. 

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith  




(including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  

 

Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER,  




IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:

_____________

_____________

Attention:  

E-mail:  

 

If to the Holder:

_____________

_____________

Attention:  




E-mail:  

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 

 

4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of _______ or in the federal courts located in _______, ______. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on ______, 2024. 

 

____________________ 

 

EXEMPLAR 

By: _________________________ 

Jacob DiMartino

Chief Executive Officer




EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of _____________, a ________ corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of _____________, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 



STOCK CANCELLATION, DEBT ASSIGNMENT

AND TRANSFER AGREEMENT

 

This Stock Cancellation, Debt Assignment and Transfer Agreement (the “Agreement”) is entered into as of this 18th day of September, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Signature Apps, Inc., a Colorado corporation wholly owned by RDAR (“Signature”), and Brenda Whitman (“Shareholder”). (RDAR, Signature and Shareholder are referred to as the “Parties”). 

 

RECITALS

 

WHEREAS, Shareholder owns 500,000,000 shares of RDAR common stock (the “RDAR Shares”) and RDAR owes Shareholder a total of $378,000.00 in principal and accrued interest on loans (the “Shareholder Loan Amount”) made to RDAR prior to the date of this Agreement, which Shareholder Loan Amount is not the subject of a promissory note or similar instrument in favor of Shareholder;

 

WHEREAS, RDAR is a publicly-traded company that has entered into certain acquisition agreements (the “2024 Agreements”) that require, as a condition to their closing, RDAR and Shareholder to have entered into this Agreement; and

 

WHEREAS, as a post-closing condition to the 2024 Agreements, RDAR is to divest of Signature by transferring all of its ownership of Signature (the “Divestiture”) to a separate publicly trading “shell” company (the “Transferee Company”), the control person of which is to be Jacob DiMartino; and

 

WHEREAS, the Transferee Company is to continue and build upon the current business of RDAR; and

 

WHEREAS, the intention of RDAR and Signature is that Shareholder will, upon the completion of the Divestiture, own three percent (3%) of the Transfer Company, to hold a convertible promissory note in the principal amount equal to the Shareholder Loan Amount and to have contractual rights to have the shares of common stock of the Transferee Company underlying the Transferee Company Note qualified in a Regulation A offering.

 

NOW, THEREFORE, in consideration of the promises and covenants contained herein, RDAR, Signature and Shareholder agree as follows: 

 

1.Recitals. The above recitals are true and correct and incorporated by reference herein. 

 

2.Cancellation of RDAR Shares. In consideration of RDAR’s and Signature’s entering into this Agreement, Shareholder hereby agrees to the cancellation of the RDAR Shares, effective immediately upon the closing of the 2024 Agreements (the “Effective Time”).  


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 1



Shareholder agrees that Shareholder shall deliver to RDAR, on the Effective Time, an Irrevocable Stock Power in the form of Exhibit A attached hereto. RDAR and Shareholder agree that the RDAR Shares were issued digitally and are held in book entry in the name of Shareholder at the transfer agent of RDAR.

 

3.Issuances of Promissory Notes. In consideration of Shareholder’s entering into this Agreement, on the Effective Time, Signature shall issue and deliver to Shareholder a promissory note (the “Signature Note”) in the Shareholder Loan Amount, in the form of as Exhibit B attached hereto. 

 

In further consideration of Shareholder’s entering into this Agreement, Signature shall cause Transferee Company take the following actions on the date on which Transferee Company takes ownership of Signature: 

 

(a) to issue and deliver to Shareholder a convertible promissory note (the “Transferee Company Note”) in the Shareholder Loan Amount, in the form of Exhibit C attached hereto, in exchange for the Signature Note; and 

 

(b) to issue equity securities of Transferee Company representing three percent (3%) ownership of Transferee Company. 

 

4.Consent to Transfer of Debt. In consideration of RDAR’s and Signature’s entering into this Agreement, Shareholder agrees and consents to RDAR’s assigning the debt, including the repayment obligation associated therewith (the “Debt Assignment”), represented by the Shareholder Loan Amount to Signature. The Debt Assignment shall be deemed to have occurred at the Effective Time. 

 

5.Miscellaneous. 

 

5.1.Notices. Any notice or other communication required or permitted to be given hereunder shall be in writing, and shall be deemed to have been duly given when delivered personally or sent by registered or certified mail, return receipt requested, postage prepaid to the Parties hereto at their last known addresses. Either party may change his or its address for the purpose of this paragraph by written notice similarly given. 

 

5.2.Entire Agreement. This Agreement represents the entire Agreement between the parties in relation to the subject matter hereof and supersedes all prior agreements between such parties relating to such subject matter. 

 

5.3.Amendment of Agreement. This Agreement may be altered or amended, in whole or in part, only in writing signed by the party against whom enforcement is sought. 

 

5.4.Waiver. No waiver of any breach or condition of this Agreement shall be deemed to be a waiver of any other subsequent breach or condition, whether of a like or different nature. 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 2



5.5.Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada. 

 

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

 

5.7.Severability. If any provision of this Agreement shall be held to be invalid or unenforceable, such invalidity or unenforceability shall attach only to such provision and shall not in any way affect or render invalid or unenforceable any other provision of this Agreement and this Agreement shall be carried out as if such invalid or unenforceable provision were not contained herein. 

 

5.8.Multiple Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, and all of such counterparts shall constitute one (1) instrument. 

 

5.9.Facsimile Signatures. A facsimile signature of each or any party to this Agreement shall have the same force and effect as an original signature and shall be binding. 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 

 

 

 

 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 3



[ Signature Page to Stock Cancellation, Debt Assignment and Transfer Agreement ]

 

 

IN WITNESS WHEREOF, the Parties have executed this agreement as of the date first written above. 

 

RDAR: 

 

RAADR, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino

Chief Executive Officer

 

SIGNATURE: 

 

SIGNATURE APPS, INC. 

 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino

Chief Executive Officer

 

SHAREHOLDER: 

 

 

/s/ Brenda Whitman 

Brenda Whitman 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 4



EXHIBIT A

 

Form of Irrevocable Stock Power

 

 

 

IRREVOCABLE STOCK POWER

 

FOR VALUE RECEIVED, the undersigned, Brenda Whitman, does (do) hereby sell, assign and transfer to 

 

 

 

 

 

(SOCIAL SECURITY OR

TAXPAYER IDENTIFYING NO.)

 

500,000,000 shares of the Common Stock of Raadr, Inc., a Nevada corporation, represented digitally on the books of said Company and standing in the name of the undersigned on the books of said Company. 

The undersigned does hereby irrevocably institute and appoint Jacob DiMartino Attorney to transfer the said stock on the books of said Company, with full power of substitution in the premises. 

Dated: September _____, 2024.

 

 

EXEMPLAR 

_____________________________ 

Brenda Whitman 

 

ACKNOWLEDGMENT

 

Before me, the undersigned authority, on this day personally appeared Brenda Whitman, known to me to be the person whose name is subscribed to the foregoing Irrevocable Stock Power, and acknowledged to me that she executed such Irrevocable Stock Power. 

 

Given under my hand and seal of office this __________ day of _________, 2024. 

 

 

 

___________________________________ 

Notary Public 

 

 

 

 

 

 

 


STOCK CANCELLATION, MUTUAL INDEMNIFICATION AND RELEASE AGREEMENT   |   PAGE 5



EXHIBIT B

 

Form of Signature Note

 

 

 

THESE SECURITIES, INCLUDING THE SECURITIES INTO WHICH THEY MAY BE CONVERTED, HAVE BEEN ISSUED IN RELIANCE UPON THE EXEMPTION FROM REGISTRATION AFFORDED BY SECTION 4(2) OF THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE TRANSFERRED WITHOUT AN OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION TO THE EFFECT THAT ANY SUCH PROPOSED TRANSFER IS IN ACCORDANCE WITH ALL APPLICABLE LAWS, RULES AND REGULATIONS.

 

PROMISSORY NOTE

 

$378,000.00September ___, 2024 

 

FOR VALUE RECEIVED, Signature Apps, Inc., a Colorado corporation (“Maker”), the undersigned, promises, pursuant to the terms of this Promissory Note (the “Note”), to pay to Brenda Whitman (“Payee”) (Payee and any subsequent holders hereof are hereinafter referred to collectively as “Holder”), at such place, or places, as Holder may designate to Maker in writing from time to time, the amount of Three Hundred Seventy-Eight and 00/100 Dollars ($378,000.00), together with interest thereon at the rate of eight percent (8%) per annum until paid, which shall be due and payable on September __, 2025 (the “Maturity Date”). 

 

The principal and accrued interest amounts hereunder may be prepaid in whole or in part, at any time and from time to time, without premium or penalty. 

 

All payments due pursuant to this Note shall be made in lawful money of the United States of America in immediately available funds, at the address of Payee indicated above, or such other place as Holder shall designate in writing to Maker. If any payment on this Note shall become due on a day which is not a Business Day (as hereinafter defined), such payment shall be made on the next succeeding Business Day and any payment made pursuant to the foregoing shall not be deemed late for purposes of assessing interest pursuant to the preceding paragraph. As used herein, the term “Business Day” shall mean any day other than a Saturday, Sunday or any other day on which national banking associations are authorized to be closed. 

 

As used herein, the terms “Maker” and “Payee” shall be deemed to include their respective successors, legal representatives, and assigns, whether by voluntary action of the parties or by operation of law. 

 

In the event this Note is placed in the hands of an attorney for collection, or if Holder incurs any costs incident to the collection of the indebtedness evidenced hereby, Maker and any endorsers hereof agree to pay to Holder an amount equal to all such costs, including without limitation all reasonable attorneys’ fees and all court costs. 

 

This Note shall be the obligation of all Makers, endorsers, guarantors and sureties, if any, as may exist now or hereafter in addition to Maker, and shall be binding upon them and their respective heirs, administrators, executors, legal representatives, successors, and assigns and shall inure to the benefit of Payee and his heirs, administrators, executors, legal representatives, successors and assigns. 

 

Notwithstanding any provision to the contrary contained herein or in any other document, it is expressly provided that in no case or event shall the aggregate of any amounts accrued or paid pursuant to this Note or any other document which, under applicable laws, are or may be deemed to constitute interest, ever exceed the maximum non-usurious interest rate permitted by applicable Iowa or federal laws, whichever permit the lower rate. In this connection, Maker and Payee stipulate and agree that it is their common and overriding intent to contract in strict compliance with applicable usury laws. In furtherance thereof, none of the terms of this Note shall ever be construed to create a contract to pay, as consideration for the use, forbearance or detention of money, interest at a rate in excess of the maximum rate permitted by applicable laws. Maker shall never be liable for interest in excess of the maximum rate permitted by applicable laws. If, for any reason whatever, such interest paid or received during  




the full term of the applicable indebtedness produces a rate which exceeds the maximum rate permitted by applicable laws, Holder shall credit against the principal of such indebtedness (or, if such indebtedness shall have been paid in full, shall refund to the payor of such interest) such portion of said interest as shall be necessary to cause the interest paid to produce a rate equal to the maximum rate permitted by applicable laws. All sums paid or agreed to be paid to Payee for the use, forbearance, or detention of money shall, to the extent permitted by applicable law, be amortized, prorated, allocated, and spread throughout the full term of the applicable indebtedness. The provisions of this paragraph shall control all agreements, whether now or hereafter existing and whether written or oral, between Maker and Payee.

 

THIS PROMISSORY NOTE AND ALL OTHER WRITTEN AGREEMENTS EXECUTED IN CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES.

 

SIGNATURE APPS, INC. 

 

EXEMPLAR 

By: _____________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT C

 

Form of Transferee Company Note

 

 

 

THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

8% CONVERTIBLE PROMISSORY NOTE

 

FOR VALUE RECEIVED, ___________________, a __________ corporation (hereinafter called the “Borrower”), hereby promises to pay to the order of _______________, or registered assigns (the “Holder”), the sum of $_______ together with any interest as set forth herein, on _________, 2025 (the “Maturity Date”), including interest on the unpaid principal balance hereof at the rate of eight percent (8%) (the “Interest Rate”) per annum from the date hereof (the “Issue Date”) until the same becomes due and payable, whether at maturity or upon acceleration or by prepayment.

 

This Note may not be prepaid in whole or in part except as otherwise explicitly set forth herein. Any amount of principal or interest on this Note which is not paid when due shall bear interest at the rate of eighteen percent (18%) per annum from the due date thereof until the same is paid (“Default Interest”). Interest shall commence accruing on the date that the Holder pays the full Purchase Price to the Borrower and shall be computed on the basis of a 365-day year and the actual number of days elapsed. All payments due hereunder (to the extent not converted into common stock, $0.001 par value per share (the “Common Stock”) in accordance with the terms hereof) shall be made in lawful money of the United States of America. All payments shall be made at such address as the Holder shall hereafter give to the Borrower by written notice made in accordance with the provisions of this Note. 

 

Each capitalized term used herein, and not otherwise defined, shall have the meaning ascribed thereto in that certain Securities Purchase Agreement dated the date hereof, pursuant to which this Note was originally issued (the “Purchase Agreement”). 

 

This Note is free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Borrower and will not impose personal liability upon the holder thereof.  

 

The following terms shall apply to this Note: 

 

Article I. Conversion Rights

 

1.1Conversion Right. The Holder shall have the right from time to time, and at any time following the date of this Note and ending on the later of: (i) the Maturity Date, or (ii) the date of payment of the Default Amount (as defined in Article III), each in respect of the remaining outstanding amount of this Note to convert all or any part of the outstanding and unpaid amount of this Note into fully paid and non-assessable shares of Common Stock, as such Common Stock exists on the Issue Date, or, in the event of a recapitalization or merger, any shares of capital stock or other securities of the Borrower into which such Common Stock shall hereafter be changed or reclassified at the conversion price (the “Conversion Price”) determined as provided herein (a “Conversion”) [The foregoing is not a ratchet provision; in the event of a recapitalization or merger, if common shareholder receive any other shares or interests, i.e., shares of a different issuer in the event of a merger, the Note will convert into such shares. That is the Note conversion rights will follow the merger]; provided, however, that in no event shall the Holder be entitled to convert any portion of this Note in excess of that portion of this Note upon conversion of which  




the sum of (1) the number of shares of Common Stock beneficially owned by the Holder and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of the Notes or the unexercised or unconverted portion of any other security of the Borrower subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of this Note with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Holder and its affiliates of more than 4.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso. The beneficial ownership limitations on conversion as set forth in the section may NOT be waived  by the Holder. The number of shares of Common Stock to be issued upon each conversion of this Note shall be determined by dividing the Conversion Amount (as defined below) by the applicable Conversion Price then in effect on the date specified in the notice of conversion, in the form attached hereto as Exhibit A (the “Notice of Conversion”), delivered to the Borrower by the Holder in accordance with Section 1.4 below; provided that the Notice of Conversion is submitted by facsimile or e-mail (or by other means resulting in, or reasonably expected to result in, notice) to the Borrower before 6:00 p.m., New York, New York time on such conversion date (the “Conversion Date”); however, if the Notice of Conversion is sent after 6:00pm, New York, New York time the Conversion Date shall be the next business day. The term “Conversion Amount” means, with respect to any conversion of this Note, the sum of (1) the principal amount of this Note to be converted in such conversion plus (2) accrued and unpaid interest, if any, on such principal amount at the interest rates provided in this Note to the Conversion Date, plus (3) at the Holder’s option, Default Interest, if any, on the amounts referred to in the immediately preceding clauses (1) and/or (2) plus (4) at the Holder’s option, any amounts owed to the Holder pursuant to Sections 1.4 hereof.

 

1.1.1Rights of Qualification. The Holder shall have the right, which may be exercised at the Holder’s sole discretion, to convert any amount due under this Note into shares of any qualified Regulation A Offering under the Securities Act of 1933, as amended (the “Securities Act”) of Borrower during the term of the any such Regulation A Offering. The number of shares to be issued upon any such conversion shall be in accordance with Section 1.2 of this Note. In conjunction with the rights granted to the Holder under this Section 1.1.1, Borrower shall, as may be required and while any amount due under this Note remains outstanding, (1) identify the Holder as a selling shareholder in each of its Regulation A Offering Circulars; and (2) qualify and allocate a sufficient number of shares of Common Stock to repay the remaining balance under the Note in full. 

 

1.2Conversion Price. The Conversion Price shall equal the Variable Conversion Price (as defined herein) (subject to equitable adjustments for stock splits, stock dividends or rights offerings by the Borrower relating to the Borrower’s securities or the securities of any subsidiary of the Borrower, combinations, recapitalization, reclassifications, extraordinary distributions and similar events). The “Variable Conversion Price” shall mean 25% multiplied by the Market Price (as defined herein) (representing a discount rate of 75%). “Market Price” means the closing price for the Common Stock on the trading day immediately preceding the date of any conversion. “Trading Day” shall mean any day on which the Common Stock is tradable for any period on the OTC, or on the principal securities exchange or other securities market on which the Common Stock is then being traded. 

 

Notwithstanding the foregoing paragraph, should the Holder exercise its conversion rights pursuant to Section 1.1.1 of this Note, the Conversion Price shall be equal to the then-current offering price of the applicable Regulation A Offering Statement. 

 

1.3Authorized Shares. The Borrower covenants that during the period the conversion right exists, the Borrower will reserve from its authorized and unissued Common Stock a sufficient number of shares, free from preemptive rights, to provide for the issuance of Common Stock upon the full conversion of this Note issued pursuant to the Purchase Agreement. The Borrower represents that upon issuance, such shares will be duly and validly issued, fully paid and non-assessable. In addition, if the Borrower shall issue any securities or make any change to its capital structure which would change the number of shares of Common Stock into which the Notes shall be convertible at the then current Conversion Price, the Borrower shall at the same time make proper provision so that thereafter there shall be a sufficient number of shares of Common Stock authorized and reserved, free from preemptive rights, for conversion of the outstanding Note. The Borrower (i) acknowledges that it has irrevocably instructed its transfer agent to issue certificates for the Common Stock issuable upon conversion of this Note, and  




(ii) agrees that its issuance of this Note shall constitute full authority to its officers and agents who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for shares of Common Stock in accordance with the terms and conditions of this Note.

 

1.4Method of Conversion. 

 

(a)Mechanics of Conversion. As set forth in Section 1.1 hereof, from time to time, and at any time, ending on the later of: (i) the Maturity Date and (ii) the date of payment of the Default Amount, this Note may be converted by the Holder in whole or in part at any time from time to time after the Issue Date, by (A) submitting to the Borrower a Notice of Conversion (by facsimile, e-mail or other reasonable means of communication dispatched on the Conversion Date prior to 6:00 p.m., New York, New York time) and (B) subject to Section 1.4(b), surrendering this Note at the principal office of the Borrower (upon payment in full of any amounts owed hereunder). 

 

(b)Surrender of Note Upon Conversion. Notwithstanding anything to the contrary set forth herein, upon conversion of this Note in accordance with the terms hereof, the Holder shall not be required to physically surrender this Note to the Borrower unless the entire unpaid principal amount of this Note is so converted. The Holder and the Borrower shall maintain records showing the principal amount so converted and the dates of such conversions or shall use such other method, reasonably satisfactory to the Holder and the Borrower, so as not to require physical surrender of this Note upon each such conversion.  

 

(c)Delivery of Common Stock Upon Conversion. Upon receipt by the Borrower from the Holder of a facsimile transmission or e-mail (or other reasonable means of communication) of a Notice of Conversion meeting the requirements for conversion as provided in this Section 1.4, the Borrower shall issue and deliver or cause to be issued and delivered to or upon the order of the Holder certificates for the Common Stock issuable upon such conversion within three (3) business days after such receipt (the “Deadline”) (and, solely in the case of conversion of the entire unpaid principal amount hereof, surrender of this Note) in accordance with the terms hereof and the Purchase Agreement. Upon receipt by the Borrower of a Notice of Conversion, the Holder shall be deemed to be the holder of record of the Common Stock issuable upon such conversion, the outstanding principal amount and the amount of accrued and unpaid interest on this Note shall be reduced to reflect such conversion, and, unless the Borrower defaults on its obligations hereunder, all rights with respect to the portion of this Note being so converted shall forthwith terminate except the right to receive the Common Stock or other securities, cash or other assets, as herein provided, on such conversion. If the Holder shall have given a Notice of Conversion as provided herein, the Borrower’s obligation to issue and deliver the certificates for Common Stock shall be absolute and unconditional, irrespective of the absence of any action by the Holder to enforce the same, any waiver or consent with respect to any provision thereof, the recovery of any judgment against any person or any action to enforce the same, any failure or delay in the enforcement of any other obligation of the Borrower to the holder of record, or any setoff, counterclaim, recoupment, limitation or termination, or any breach or alleged breach by the Holder of any obligation to the Borrower, and irrespective of any other circumstance which might otherwise limit such obligation of the Borrower to the Holder in connection with such conversion.  

 

(d)Delivery of Common Stock by Electronic Transfer. In lieu of delivering physical certificates representing the Common Stock issuable upon conversion, provided the Borrower is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer (“FAST”) program, upon request of the Holder and its compliance with the provisions set forth herein, the Borrower shall use its best efforts to cause its transfer agent to electronically transmit the Common Stock issuable upon conversion to the Holder by crediting the account of Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission (“DWAC”) system.  

 

(e)Failure to Deliver Common Stock Prior to Deadline. Without in any way limiting the Holder’s right to pursue other remedies, including actual damages and/or equitable relief, the parties agree that if delivery of the Common Stock issuable upon conversion of this Note is not delivered by the Deadline (3 business days after receipt of Conversion Notice) due to action and/or inaction of the Borrower, the Borrower shall pay to the Holder $500 per day in cash, for each day beyond the Deadline that the Borrower fails to deliver such Common Stock (the “Fail to Deliver Fee”); provided; however that the Fail to Deliver Fee shall not be due if the failure is a result of a third party (i.e., transfer agent; and not the result of any failure to pay such transfer agent) despite the best  




efforts of the Borrower to effect delivery of such Common Stock. Such cash amount shall be paid to Holder by the fifth day of the month following the month in which it has accrued or, at the option of the Holder (by written notice to the Borrower by the first day of the month following the month in which it has accrued), shall be added to the principal amount of this Note, in which event interest shall accrue thereon in accordance with the terms of this Note and such additional principal amount shall be convertible into Common Stock in accordance with the terms of this Note. The Borrower agrees that the right to convert is a valuable right to the Holder. The damages resulting from a failure, attempt to frustrate, interference with such conversion right are difficult if not impossible to qualify. Accordingly, the parties acknowledge that the liquidated damages provision contained in this Section 1.4(e) are justified.

 

1.5Concerning the Shares. The shares of Common Stock issuable upon conversion of this Note may not be sold or transferred unless: (i) the Borrower or its transfer agent shall have been furnished by the Holder with an opinion of counsel (which opinion shall be in form, substance and scope customary for opinions of counsel in comparable transactions) to the effect that the shares to be sold or transferred may be sold or transferred pursuant to an exemption from such registration (such as Rule 144 or a successor rule) (“Rule 144”); or (ii) such shares are transferred to an “affiliate” (as defined in Rule 144) of the Borrower who agrees to sell or otherwise transfer the shares only in accordance with this Section 1.5 and who is an Accredited Investor (as defined in the Purchase Agreement). 

 

1.6Effect of Certain Events. 

 

(a)Effect of Merger, Consolidation, Etc. At the option of the Holder, the sale, conveyance or disposition of all or substantially all of the assets of the Borrower, the effectuation by the Borrower of a transaction or series of related transactions in which more than 50% of the voting power of the Borrower is disposed of, or the consolidation, merger or other business combination of the Borrower with or into any other Person (as defined below) or Persons when the Borrower is not the survivor shall be deemed to be an Event of Default (as defined in Article III) pursuant to which the Borrower shall be required to pay to the Holder upon the consummation of and as a condition to such transaction an amount equal to the Default Amount (as defined in Article III). “Person” shall mean any individual, corporation, limited liability company, partnership, association, trust or other entity or organization.  

 

(b)Adjustment Due to Merger, Consolidation, Etc. If, at any time when this Note is issued and outstanding and prior to conversion of all of the Note, there shall be any merger, consolidation, exchange of shares, recapitalization, reorganization, or other similar event, as a result of which shares of Common Stock of the Borrower shall be changed into the same or a different number of shares of another class or classes of stock or securities of the Borrower or another entity, or in case of any sale or conveyance of all or substantially all of the assets of the Borrower other than in connection with a plan of complete liquidation of the Borrower, then the Holder of this Note shall thereafter have the right to receive upon conversion of this Note, upon the basis and upon the terms and conditions specified herein and in lieu of the shares of Common Stock immediately theretofore issuable upon conversion, such stock, securities or assets which the Holder would have been entitled to receive in such transaction had this Note been converted in full immediately prior to such transaction (without regard to any limitations on conversion set forth herein), and in any such case appropriate provisions shall be made with respect to the rights and interests of the Holder of this Note to the end that the provisions hereof (including, without limitation, provisions for adjustment of the Conversion Price and of the number of shares issuable upon conversion of the Note) shall thereafter be applicable, as nearly as may be practicable in relation to any securities or assets thereafter deliverable upon the conversion hereof. The Borrower shall not affect any transaction described in this Section 1.6(b) unless (a) it first gives, to the extent practicable, ten (10) days prior written notice (but in any event at least five (5) days prior written notice) of the record date of the special meeting of shareholders to approve, or if there is no such record date, the consummation of, such merger, consolidation, exchange of shares, recapitalization, reorganization or other similar event or sale of assets (during which time the Holder shall be entitled to convert this Note) and (b) the resulting successor or acquiring entity (if not the Borrower) assumes by written instrument the obligations of this Note. The above provisions shall similarly apply to successive consolidations, mergers, sales, transfers or share exchanges. 

 

(c)Adjustment Due to Distribution. If the Borrower shall declare or make any distribution of its assets (or rights to acquire its assets) to holders of Common Stock as a dividend, stock repurchase, by way of  




return of capital or otherwise (including any dividend or distribution to the Borrower’s shareholders in cash or shares (or rights to acquire shares) of capital stock of a subsidiary (i.e., a spin-off)) (a “Distribution”), then the Holder of this Note shall be entitled, upon any conversion of this Note after the date of record for determining shareholders entitled to such Distribution, to receive the amount of such assets which would have been payable to the Holder with respect to the shares of Common Stock issuable upon such conversion had such Holder been the holder of such shares of Common Stock on the record date for the determination of shareholders entitled to such Distribution. [NOTE: This is not a ratchet provision, it simply prohibits the issuer from effecting a distribution of assets or stock while attempting to avoid conversion or payment of the note (i.e., in the event of an asset distribution which renders the company a shell company, without the foregoing language, although it would be a default, the note holder would be left with little other remedies to attempt to be repaid from the spin off entity). Note that the language does not change the conversion price formula.]

 

1.7Prepayment. This Note may be prepaid at any time without penalty. The Holder’s conversion rights herein shall not be affected in any way until the Note is fully paid (funds received by the Holder). 

 

ARTICLE II. CERTAIN COVENANTS

 

2.1Sale of Assets. So long as the Borrower shall have any obligation under this Note, the Borrower shall not, sell, lease or otherwise dispose of any significant portion of its assets outside the ordinary course of business. Any consent to the disposition of any assets may not be unreasonably withheld as long as such disposition does not render the Borrower a “shell company” as such term is defined in Rule 144.  

 

ARTICLE III. EVENTS OF DEFAULT

 

If any of the following events of default (each, an “Event of Default”) shall occur: 

 

3.1Failure to Pay Principal and Interest. The Borrower fails to pay the principal hereof or interest thereon when due on this Note, whether at maturity or upon acceleration and such breach continues for a period of five (5) days after written notice from the Holder.  

 

3.2Conversion and the Shares. The Borrower fails to issue shares of Common Stock to the Holder (or announces or threatens in writing that it will not honor its obligation to do so) upon exercise by the Holder of the conversion rights of the Holder in accordance with the terms of this Note, fails to transfer or cause its transfer agent to transfer (issue) (electronically or in certificated form) any certificate for shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, the Borrower directs its transfer agent not to transfer or delays, impairs, and/or hinders its transfer agent in transferring (or issuing) (electronically or in certificated form) any certificate for shares of Common Stock to be issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note, or fails to remove (or directs its transfer agent not to remove or impairs, delays, and/or hinders its transfer agent from removing) any restrictive legend (or to withdraw any stop transfer instructions in respect thereof) on any certificate for any shares of Common Stock issued to the Holder upon conversion of or otherwise pursuant to this Note as and when required by this Note (or makes any written announcement, statement or threat that it does not intend to honor the obligations described in this paragraph) and any such failure shall continue uncured (or any written announcement, statement or threat not to honor its obligations shall not be rescinded in writing) for three (3) business days after the Holder shall have delivered a Notice of Conversion. It is an obligation of the Borrower to remain current in its obligations to its transfer agent. It shall be an event of default of this Note, if a conversion of this Note is delayed, hindered or frustrated due to a balance owed by the Borrower to its transfer agent. If at the option of the Holder, the Holder advances any funds to the Borrower’s transfer agent in order to process a conversion, such advanced funds shall be paid by the Borrower to the Holder within forty-eight (48) hours of a demand from the Holder. 

 

3.3Breach of Covenants. The Borrower breaches any material covenant or other material term or condition contained in this Note and any collateral documents including but not limited to the Purchase Agreement and such breach continues for a period of twenty (20) days after written notice thereof to the Borrower from the Holder. 

 

3.4Breach of Representations and Warranties. Any representation or warranty of the Borrower  




made herein or in any agreement, statement or certificate given in writing pursuant hereto or in connection herewith (including, without limitation, the Purchase Agreement), shall be false or misleading in any material respect when made and the breach of which has (or with the passage of time will have) a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.

 

3.5Receiver or Trustee. The Borrower or any subsidiary of the Borrower shall make an assignment for the benefit of creditors, or apply for or consent to the appointment of a receiver or trustee for it or for a substantial part of its property or business, or such a receiver or trustee shall otherwise be appointed. 

 

3.6Bankruptcy. Bankruptcy, insolvency, reorganization or liquidation proceedings or other proceedings, voluntary or involuntary, for relief under any bankruptcy law or any law for the relief of debtors shall be instituted by or against the Borrower or any subsidiary of the Borrower.  

 

3.7Delisting of Common Stock. The Borrower shall fail to maintain the listing of the Common Stock on at least one of the OTC (which specifically includes the quotation platforms maintained by the OTC Markets Group) or an equivalent replacement exchange, the Nasdaq National Market, the Nasdaq SmallCap Market, the New York Stock Exchange, or the American Stock Exchange.  

 

3.8[Omitted]. 

 

3.9Liquidation. Any dissolution, liquidation, or winding up of Borrower or any substantial portion of its business.  

 

3.10Cessation of Operations. Any cessation of operations by Borrower rendering the Borrower a “shell company” as such term is defined in Rule 144, or Borrower admits it is otherwise generally unable to pay its debts as such debts become due, provided, however, that any disclosure of the Borrower’s ability to continue as a “going concern” shall not be an admission that the Borrower cannot pay its debts as they become due.  

 

3.11Financial Statement Restatement. The restatement of any financial statements filed by the Borrower with OTC Markets at any time after 180 days after the Issuance Date for any date or period until this Note is no longer outstanding, if the result of such restatement would, by comparison to the un-restated financial statement, have constituted a material adverse effect on the rights of the Holder with respect to this Note or the Purchase Agreement.  

 

3.12Replacement of Transfer Agent. In the event that the Borrower proposes to replace its transfer agent, the Borrower fails to provide, prior to the effective date of such replacement, a fully executed Irrevocable Transfer Agent Instructions in a form as initially delivered pursuant to the Purchase Agreement signed by the successor transfer agent to Borrower and the Borrower.  

 

3.13Cross-Default. Notwithstanding anything to the contrary contained in this Note or the other related or companion documents, a breach or default by the Borrower of any covenant or other term or condition contained in any of the Other Agreements, after the passage of all applicable notice and cure or grace periods, shall, at the option of the Holder, be considered a default under this Note and the Other Agreements, in which event the Holder shall be entitled (but in no event required) to apply all rights and remedies of the Holder under the terms of this Note and the Other Agreements by reason of a default under said Other Agreement or hereunder. “Other Agreements” means, collectively, all agreements and instruments between, among or by: (1) the Borrower, and, or for the benefit of, (2) the Holder and any affiliate of the Holder, including, without limitation, promissory notes; provided, however, the term “Other Agreements” shall not include the related or companion documents to this Note. Each of the loan transactions will be cross-defaulted with each other loan transaction and with all other existing and future debt of Borrower to the Holder.  

 

Upon the occurrence and during the continuation of any Event of Default specified in Section 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due at the Maturity Date), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to the Default Sum (as defined herein). UPON THE OCCURRENCE AND DURING THE CONTINUATION OF ANY EVENT OF DEFAULT SPECIFIED IN SECTION 3.2, THE NOTE SHALL  




BECOME IMMEDIATELY DUE AND PAYABLE AND THE BORROWER SHALL PAY TO THE HOLDER, IN FULL SATISFACTION OF ITS OBLIGATIONS HEREUNDER, AN AMOUNT EQUAL TO: (Y) THE DEFAULT SUM (AS DEFINED HEREIN); MULTIPLIED BY (Z) TWO (2). Upon the occurrence and during the continuation of any Event of Default specified in Sections 3.1 (solely with respect to failure to pay the principal hereof or interest thereon when due on this Note or upon acceleration), 3.3, 3.4, 3.7, 3.8, 3.10, 3.11, 3.12, 3.13, and/or 3.14 exercisable through the delivery of written notice to the Borrower by such Holders (the “Default Notice”), and upon the occurrence of an Event of Default specified the remaining sections of Articles III (other than failure to pay the principal hereof or interest thereon at the Maturity Date specified in Section 3,1 hereof), the Note shall become immediately due and payable and the Borrower shall pay to the Holder, in full satisfaction of its obligations hereunder, an amount equal to 150% times the sum of (w) the then outstanding principal amount of this Note plus (x) accrued and unpaid interest on the unpaid principal amount of this Note to the date of payment (the “Mandatory Prepayment Date”) plus (y) Default Interest, if any, on the amounts referred to in clauses (w) and/or (x) plus (z) any amounts owed to the Holder pursuant to Sections 1.3 and 1.4(g) hereof (the then outstanding principal amount of this Note to the date of payment plus the amounts referred to in clauses (x), (y) and (z) shall collectively be known as the “Default Amount”) and all other amounts payable hereunder shall immediately become due and payable, all without demand, presentment or notice, all of which hereby are expressly waived, together with all costs, including, without limitation, legal fees and expenses, of collection, and the Holder shall be entitled to exercise all other rights and remedies available at law or in equity.

 

If the Borrower fails to pay the Default Amount within five (5) business days of written notice that such amount is due and payable and the details of the determination of such amount, then the Holder shall have the right at any time, so long as the Borrower remains in default (and so long and to the extent that there are sufficient authorized shares), to require the Borrower, upon written notice, to immediately issue, in lieu of the Default Amount, the number of shares of Common Stock of the Borrower equal to the Default Amount divided by the Conversion Price then in effect. 

 

ARTICLE IV. MISCELLANEOUS

 

4.1Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privileges. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies otherwise available.  

 

4.2Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (i) personally served, (ii) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (iii) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (a) upon hand delivery or delivery by facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (b) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to the Borrower, to:

_____________

_____________

Attention:  

E-mail:  

 

If to the Holder:

_____________

_____________




Attention:  

E-mail:  

 

4.3Amendments. This Note and any provision hereof may only be amended by an instrument in writing signed by the Borrower and the Holder. The term “Note” and all reference thereto, as used throughout this instrument, shall mean this instrument (and the other Notes issued pursuant to the Purchase Agreement) as originally executed, or if later amended or supplemented, then as so amended or supplemented. 

 

4.4Assignability. This Note shall be binding upon the Borrower and its successors and assigns, and shall inure to be the benefit of the Holder and its successors and assigns. Each transferee of this Note must be an “accredited investor” (as defined in Rule 501(a) of the Securities and Exchange Commission). Notwithstanding anything in this Note to the contrary, this Note may be assigned by the Holder without the consent of the Borrower.  

 

4.5Cost of Collection. If default is made in the payment of this Note, the Borrower shall pay the Holder hereof costs of collection, including reasonable attorneys’ fees.  

 

4.6Governing Law. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of _______ or in the federal courts located in _______, ______. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.  

 

4.7Purchase Agreement. By its acceptance of this Note, each party agrees to be bound by the applicable terms of the Purchase Agreement.  

 

4.8Remedies. The Borrower acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder, by vitiating the intent and purpose of the transaction contemplated hereby. Accordingly, the Borrower acknowledges that the remedy at law for a breach of its obligations under this Note will be inadequate and agrees, in the event of a breach or threatened breach by the Borrower of the provisions of this Note, that the Holder shall be entitled, in addition to all other available remedies at law or in equity, and in addition to the penalties assessable herein, to an injunction or injunctions restraining, preventing or curing any breach of this Note and to enforce specifically the terms and provisions thereof, without the necessity of showing economic loss and without any bond or other security being required. 

 

IN WITNESS WHEREOF, Borrower has caused this Note to be signed in its name by its duly authorized officer on ______, 2024. 

 

____________________ 

 

EXEMPLAR 

By: ____________________________ 

Jacob DiMartino

Chief Executive Officer




EXHIBIT A

 

FORM OF NOTICE OF CONVERSION

 

The undersigned hereby elects to convert $_________ principal amount and $_________ of accrued interest of the Note (defined below) into that number of shares of Common Stock to be issued pursuant to the conversion of the Note (“Common Stock”) as set forth below, of _____________, a ________ corporation (the “Borrower”), according to the conditions of the convertible note of the Borrower dated as of _____________, 2024 (the “Note”), as of the date written below. No fee will be charged to the Holder for any conversion, except for transfer taxes, if any. 

 

Box Checked as to applicable instructions:  

 

The Borrower shall electronically transmit the Common Stock issuable pursuant to this Notice of Conversion to the account of the undersigned or its nominee with DTC through its Deposit Withdrawal Agent Commission system (“DWAC Transfer”). 

 

Name of DTC Prime Broker: ______________________________________________ 

Account Number: _______________________________________________________ 

 

The undersigned hereby requests that the Borrower issue a certificate or certificates for the number of shares of Common Stock set forth below (which numbers are based on the Holder’s calculation attached hereto) in the name(s) specified immediately below or, if additional space is necessary, on an attachment hereto: 

 

Date of conversion: ___________________________________

Applicable Conversion Price: $___________________________

Number of shares of common stock to be issued

pursuant to conversion of the Notes: _______________________

Amount of Principal Balance due remaining

under the Note after this conversion: _______________________

 

[ Name of Holder ]

 

 

By: ___________________________

 

 

 

 

 

 

 



REDEMPTION AGREEMENT

 

This Agreement (the “Agreement”) is made as of October 8, 2024, by and between Raadr, Inc., a Nevada corporation (the “Issuer”), and JanBella Group, LLC, a stockholder of the Issuer (“Seller”). 

 

RECITALS

 

WHEREAS, Seller is the owner of 1,000,000 shares of the Issuer’s Series E Preferred Stock, par value $0.001 per share (“Subject Preferred Stock”); and

 

WHEREAS, Seller desires to sell to the Issuer, and the Issuer desires to re-purchase and redeem from Seller, the Subject Preferred Stock, which shall result in the re-purchase and redemption by the Issuer of the Subject Preferred Stock, on and subject to the terms of this Agreement.

 

NOW, THEREFORE, the parties hereto hereby agree as follows: 

 

1.Sale of the Shares. Subject to the terms and conditions of this Agreement, and in reliance upon the representations, warranties, covenants and agreements contained in this Agreement, Seller shall sell to the Issuer the Subject Preferred Stock, and the Issuer shall re-purchase and redeem the Subject Preferred Stock from Seller, for the purchase price set forth in Exhibit A attached hereto and incorporated herein by this reference (the “Purchase Price”). 

 

2.Right to Rescind. If the Acquisition Agreements (defined below) are rescinded in accordance with their respective terms or if the Issuer defaults on the Redemption Note (as defined in Exhibit A), then Seller shall have the right, but not the obligation, to rescind this Agreement by written notice to the Issuer. Should Seller so rescind this Agreement, the Issuer shall, without delay, re-issue the Subject Preferred Stock to Seller and Seller shall retain any and all amounts paid to Seller under the Redemption Note (as defined in Exhibit A) as liquidated damages. 

 

3.Condition Precedent. As a condition precedent to the Closing (defined below) of this Agreement, Seller and Mexedia S.p.A. S.B., as guarantor of the Note, shall have entered into a pledge agreement (the “Pledge Agreement”), in the form of Exhibit B attached hereto, and a guaranty (the “Guaranty”), in the form of Exhibit C attached hereto. The Pledge Agreement and the Guaranty are to become binding agreement upon the consummation of the Acquisition Agreements. 

 

4.Closing. 

 

(a)The purchase and sale of the Subject Preferred Stock shall take place at a closing (the “Closing”), to occur immediately following the effectiveness of the acquisition transactions (the “Acquisitions”) contemplated by those certain share exchange agreements, dated as of September 9, 2024, by and between (1) the Issuer, Mexedia, Inc. and its shareholder and (2) the Issuer, Mexedia DAC an its shareholder (collectively, the “Acquisition Agreements”). The parties hereto shall have no obligation to complete the Closing in the event all of the Acquisition Agreements are not consummated contemporaneously. 

 

(b)At the Closing: 

 

(1)Seller shall deliver to the Issuer book-entry statements representing the shares of Subject Preferred Stock, duly endorsed in form for transfer to the Issuer. 


REDEMPTION AGREEMENT   |   PAGE 1



(2)The Issuer shall have delivered a fully executed Pledge Agreement and a fully executed Guaranty. 

 

(3)The Issuer shall pay to Seller the Purchase Price, as set forth in Exhibit A

 

(4)At, and at any time after, the Closing, Seller shall duly execute, acknowledge and deliver all such further assignments, conveyances, instruments and documents, and shall take such other action consistent with the terms of this Agreement to carry out the transactions contemplated by this Agreement, as may be requested by the Issuer. 

 

5.Representations and Warranties.  

 

(a)Of Seller. Seller makes the following representations and warranties to the Issuer with respect to Seller and the Subject Preferred Stock to be sold by Seller hereunder: 

 

(1)Seller is domiciled in the United States of America. 

 

(2)Seller is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”). 

 

(3)Seller has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out its obligations hereunder. 

 

(4)Seller owns the Subject Preferred Stock free and clear of any and all options, liens, claims, encumbrances, security interests, pledges, preemptive rights, rights of first refusal and adverse interests of any kind. Seller agrees that the consideration payable by the Issuer for the re-purchase and redemption of the Subject Preferred Stock is fair and reasonable and that Seller is in the best position to evaluate and determine the fair value of the Subject Preferred Stock. There are no restrictions on the transfer or redemption of the Subject Preferred Stock (other than restrictions under the Securities Act or state securities laws). No person or entity has any right to purchase the Subject Preferred Stock or any portion thereof or interest therein. 

 

(5)Seller has received and reviewed the Acquisition Agreements and understands and consents to the transactions contemplated thereby. Seller has been afforded the opportunity during the course of negotiating the transactions contemplated by this Agreement to ask questions of, and to secure such information from, the Issuer and its officers and directors with regard to each of the Issuer and Mexedia S.p.A. S.B., the owner of Mexedia, Inc. and Mexedia DAC, as it deems necessary to evaluate the merits of consenting to the Issuer’s consummating such transactions, it being understood that Seller is the controlling stockholder of the Issuer and, as such, is intimately familiar with the Issuer and its business, operations, assets, liabilities, prospects and financial condition in all respects. All such questions, if asked, were answered satisfactorily and all information or documents provided were found to be satisfactory. 

 

(6)There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to Seller’s knowledge, threatened against Seller or any of its properties. There is no judgment, decree or order against Seller that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. 

 

(7)No bankruptcy, receivership or debtor relief proceedings are pending or, to Seller’s knowledge, threatened against Seller. 


REDEMPTION AGREEMENT   |   PAGE 2



(8)All representations, covenants and warranties of Seller contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though the same had been made on and as of such date. 

 

(b)Of the Issuer. The Issuer makes the following representations and warranties to Seller: 

 

(1)The Board of Directors has authorized the Issuer’s entering into this Agreement and consummating the transactions contemplated hereby and otherwise to carry out its obligations hereunder. 

 

(2)The Issuer is in good standing in the State of Nevada and in every other jurisdiction in which it engages in business. 

 

(3)There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Issuer’s knowledge, threatened against the Issuer or any of its properties. There is no judgment, decree or order against the Issuer that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. 

 

(4)No bankruptcy, receivership or debtor relief proceedings are pending or, to the Issuer’s knowledge, threatened against the Issuer. 

 

(5)All representations, covenants and warranties of the Issuer contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though the same had been made on and as of such date. 

 

6.Termination by Mutual Agreement. This Agreement may be terminated at any time by mutual consent of the parties hereto, provided that such consent to terminate is in writing and is signed by each of the parties hereto. 

 

7.Release. Seller, on its own behalf and, to the extent of its legal authority, on behalf of its successors, assigns, heirs, next-of-kin, representatives, administrators, executors, partners, agents and affiliates, and any other person claiming by, through or under any of the foregoing (individually, a “Releasing Party”, and, collectively, “Releasing Parties”), hereby unconditionally and irrevocably releases, waives and forever discharges, effective as of the Closing hereunder, the Issuer, Phone Match, LLC, including its members, Mexedia, Inc., including its shareholder, and Mexedia DAC, including its shareholder, and each of their past and present respective officers, directors, employees, stockholders, predecessors, successors, assigns, partners, subsidiaries and affiliates (individually, a “Released Party”, and, collectively, “Released Parties”) from any and all claims, obligations, contracts, agreements, rights, debts, covenants and liabilities (including attorneys’ fees and costs) of any nature whatsoever, whether fixed or contingent, known or unknown, suspected or claimed to exist or unsuspected, regardless of whether knowledge of the unknown or unsuspected claim would have materially affected Seller’s decision to enter into this Agreement, both at law and in equity, arising directly or indirectly from any act, omission, event, or transaction occurring (or any facts or circumstances existing) on or prior to the Closing hereunder, but excluding claims for breach by the Issuer of any provision of this Agreement. 

 

8.Miscellaneous. 

 

(a)Entire Agreement. This Agreement constitutes the entire agreement of the parties, superseding and terminating any and all prior or contemporaneous oral and written agreements, understandings  


REDEMPTION AGREEMENT   |   PAGE 3



or letters of intent between or among the parties, with respect to the subject matter of this Agreement. No part of this Agreement may be modified or amended, nor may any right be waived, except by a written instrument which expressly refers to this Agreement, states that it is a modification or amendment of this Agreement and is signed by the parties to this Agreement, or, in the case of waiver, by the party granting the waiver. No course of conduct or dealing or trade usage or custom and no course of performance shall be relied on or referred to by any party to contradict, explain or supplement any provision of this Agreement, it being acknowledged by the parties to this Agreement that this Agreement is intended to be, and is, the complete and exclusive statement of the agreement with respect to its subject matter. Any waiver shall be limited to the express terms thereof and shall not be construed as a waiver of any other provisions or the same provisions at any other time or under any other circumstances.

 

(b)Severability. If any section, term or provision of this Agreement shall to any extent be held or determined to be invalid or unenforceable, the remaining sections, terms and provisions shall nevertheless continue in full force and effect. 

 

(c)Notices. All notices provided for in this Agreement shall be in writing signed by the party giving such notice, and delivered personally or sent by overnight courier, mail or messenger against receipt thereof or sent by registered or certified mail, return receipt requested, or by facsimile transmission or similar means of communication if receipt is confirmed or if transmission of such notice is confirmed by mail as provided in this Section 6(c). Notices shall be deemed to have been received on the date of personal delivery or e-email or attempted delivery. Notice shall be delivered to the parties at the following addresses: 

 

If to the Issuer:

7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260.

 

If to Seller:

20311 Chartwell Center Drive, Suite 1469, Cornelius, North Carolina 28031.

 

Either party may, by like notice, change the address, person or telecopier number to which notice shall be sent. 

 

(d)Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of North Carolina or in the federal courts located in the state and City of Charlotte, North Carolina. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Issuer and the Seller waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement, any agreement or any other document delivered in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient  


REDEMPTION AGREEMENT   |   PAGE 4



service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

(e)Successors. This Agreement shall be binding upon the parties and their respective heirs, executors, administrators, legal representatives, successors and assigns; provided, however, that neither party may assign this Agreement or any of its rights under this Agreement without the prior written consent of the other party. 

 

(f)Further Assurances. Each party to this Agreement agrees, without cost or expense to any other party, to deliver or cause to be delivered such other documents and instruments as may be reasonably requested by any other party to this Agreement in order to carry out more fully the provisions of, and to consummate the transaction contemplated by, this Agreement. 

 

(g)Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement and any documents relating to it may be executed and transmitted to any other party by facsimile or email of a PDF, which facsimile or PDF shall be deemed to be, and utilized in all respects as, an original, wet-inked document. 

 

(h)No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties with the advice of counsel to express their mutual intent, and no rules of strict construction will be applied against any party. 

 

(i)Headings. The headings in the Sections of this Agreement are inserted for convenience only and shall not constitute a part of this Agreement. 

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. 

 

ISSUER:

 

SELLER:

 

 

 

RAADR, INC.

 

JANBELLA GROUP, LLC

 

 

 

By: /s/ Jacob DiMartino

 

By: /s/ William Alessi

Jacob DiMartino

 

William Alessi

Chief Executive Officer

 

Managing Member

 

 

 

 


REDEMPTION AGREEMENT   |   PAGE 5



EXHIBIT A

 

Purchase Price of Subject Preferred Stock

 

Due to the difficulty in establishing a value for the businesses to be acquired by the Issuer in the Acquisitions, the Issuer and Seller have agreed to a minimum Purchase Price of $540,000.00 (the “Minimum Price”) and a maximum Purchase Price of $1,800,000.00 (the “Maximum Price”) for the Subject Preferred Stock. The Purchase Price shall be paid by the Issuer’s delivery of a secured promissory note (the  “Redemption Note”), in the form of Annex I attached to this Exhibit A. 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


REDEMPTION AGREEMENT   |   PAGE 6



ANNEX I

 

Form of Redemption Note

 

 

 

NEITHER THE ISSUANCE NOR THE SALE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

 

SECURED PROMISSORY NOTE

 

Principal Amount: $540,000.00Issue Date: October ___, 2024 

 

Raadr, Inc., a Nevada corporation (“Maker”), promises to pay to JanBella Group, LLC (“Holder”) the principal sum of Five Hundred Forty Thousand Dollars ($540,000.00) (the “Principal Balance”), together with interest accrued thereon calculated at the rate of eight percent (8%) per annum (the “Interest”), all as set forth herein (the “Note”).  

 

The Principal Balance and accrued Interest shall be due and payable, as follows: 

 

(A)within three (3) business days from the end of each calendar month during which Maker shall have received proceeds (each a “Monthly Reg A Tranche”) under Maker’s next-filed Offering Statement on Form 1-A (the “Regulation A Offering”), Maker shall pay Holder an amount that equals forty percent (40%) of each Monthly Reg A Tranche amount that exceeds $100,000, with each such payment being applied first to accrued Interest and then to the Principal Balance of this Note, until such time as all accrued Interest and the Principal Balance shall have been paid in full; and 

 

(B)in any event, on or before October ___, 2025 (the “Maturity Date”). 

 

Following the date of payment in full of the Principal Balance and all accrued Interest thereon (the “Balance Date”), Maker further promises to pay to Holder up to an additional $1,260,000 as additional principal (the “Additional Principal”). In this regard, within three (3) business days from Maker’s receipt of a Monthly Reg A Tranche after the Balance Date, Maker shall pay Holder an amount that equals ten percent (10%) of each Monthly Reg A Tranche amount that exceeds $100,000, until such time as all of the Additional Principal has been paid. Further, and in addition to the provisions of the foregoing sentence, for a period of 18 months immediately following the Issue Date, within three (3) business days from Maker's receipt of any third-party funding (the “Sourced Funding”), whether in the from of debt and/or equity, Maker shall pay Holder an amount that equals ten percent (10%) of the Sourced Funding amount, until such time as all of the Additional Principal has been paid. Maker shall incur no penalty for its failing to pay the Addition Principal amount in full. 

 

Upon a default by Maker hereunder, the then-outstanding Principal Balance shall thereafter bear interest thereon at eighteen percent (18%) per annum (the “Default Rate”) until the past due amount, including interest at the Default Rate, shall have been paid in full. 

 

In the event any payment called for by this Note would result in the violation of applicable usury laws, then any amount paid in excess of the maximum amount on interest allowed by law shall be applied towards a reduction of the outstanding principal balance. 

 

The obligations of this Note are secured by (a) that certain Pledge Agreement dated as of the Issue Date between Holder, as lender, and Mexedia S.p.A. S.B., as guarantor, and (b) that certain Guaranty dated as of the Issue Date among Holder, as lender, and Mexedia S.p.A. S.B., as guarantor. 

 

The occurrence of any one or more of the following events shall constitute a default under this Note: 

 

(a)failure of Maker to file the Regulation A Offering within twenty (20) days from the Issue Date of this Note; 

 

(b)failure of Maker to make any payment when due under this Note, with a grace period of two (2) business days; 

 

(c)the filing of any petition under federal bankruptcy law or any similar federal or state statute by or against Maker; 

 

(d)an application for the appointment of a receiver for, the making of a general assignment for the benefit of creditors by, or the insolvency of Maker; 

 

(e)the validity or enforceability of this Note is contested by Maker; or  

 

(f)Maker denies that it has any or any further liability or obligation hereunder. 




This Note is and shall be deemed to have been made and delivered in the State of North Carolina and in all respects shall be governed and construed in accordance with the laws of that State. 

 

This Note shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of North Carolina or in the federal courts located in the City of Charlotte, State of North Carolina. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

The word “Maker” shall include Maker’s representatives, successors and assigns and the word “Holder” shall include Holder’s representatives, successors and assigns. 

 

Maker and all endorsers of this Note hereby waive presentment for payment, demand for payment, notice of non-payment and dishonor, protest, and notice of protest; consent to any renewals, extensions and partial payments of this Note or the indebtedness for which it is given without notice to them, and consent that no such renewals, extensions or partial payments shall discharge any party hereto from liability hereon in whole or in part.  

 

If this Note shall be placed with an attorney for collection, Maker, endorsers and guarantors agree to pay all costs of collection, including reasonable attorneys’ fees which shall be added to the amount due under this Note and shall be recoverable with the amount due under this Note and shall be a lien on any collateral securing this Note. 

 

Maker acknowledges and agrees that sufficient consideration has passed to render this Note valid and enforceable and waives any claim based on inadequate consideration. 

 

IN WITNESS WHEREOF, Maker has executed this Note as of the date first above set forth.  

 

RAADR, INC. 

 

EXEMPLAR 

 

By: /s/ Jacob DiMartino 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT B

 

Form of Pledge Agreement

 

 

 

PLEDGE AGREEMENT

 

This Pledge Agreement (the “Agreement”) is made and entered as of October ___, 2024, by and among Mexedia S.p.A. S.B. (“Guarantor”), JanBella Group, LLC, a North Carolina limited liability company (“Lender”), and the undersigned holder of the pledged shares (“Pledge Holder”). 

 

RECITALS

 

Raadr, Inc., a Nevada corporation (the “Company”), issued a Secured Promissory Note, dated as of the date of this Agreement (the “Redemption Note”) to Lender, whereby the Company owes payment obligations to Lender.

 

Guarantor has agreed to secure the Company’s payment obligations to Lender under the Redemption Note with a guaranty and a pledge of, and thereby create a security interest in favor of Lender in, a total of 70,000 shares of Series F Preferred Stock of the Company (the “Shares”), the Shares representing 100% of the issued and outstanding shares of Series F Preferred Stock of the Company.

 

AGREEMENT

 

1.Security Interest. Guarantor hereby grants to Lender a security interest in (a) the Shares, (b) all Dividends (as defined below), and (c) all Additional Securities (as defined below); to secure payment of the Redemption Note and performance of all Guarantor’s obligations under this Agreement. For purposes of this Agreement, the Shares, all Dividends and all Additional Securities will be collectively referred to as the “Collateral”. If any stock dividend, reclassification, readjustment, stock split or other change is declared or made with respect to the Collateral, or if warrants or any other rights, options or securities are issued in respect of the Collateral (“Additional Securities”), then all new, substituted and/or additional shares or other securities issued by reason of such change or by reason of the exercise of such warrants, rights, options or securities, will be (if delivered to Guarantor, immediately surrendered to Lender care of the Pledge Holder and) pledged to Lender to be held under the terms of this Agreement as and in the same manner as the Collateral is held hereunder. 

 

2.Appointment of the Pledge Holder. Guarantor and Lender hereby designate and appoint the Pledge Holder as such for the purposes hereinafter set forth. Guarantor hereby deposits with the Pledge Holder (a) the Shares, as are represented by the book entry statement in the name of Guarantor, (b) the original Stock Power, copies of which are attached hereto as Exhibit A, and (c) documentation waiving the Medallion Signature Guaranty requirement signed by the Company and Manhattan Transfer Registrar Co., in form satisfactory to Lender. 

 

3.Rights and Obligations of the Pledge Holder.  

 

(a)Guarantor and Lender hereby authorize the Pledge Holder to keep and preserve the Shares in its possession pending payment in full of the Redemption Note. If a default occurs under the terms of this Agreement or the Redemption Note, then Lender shall provide written notice to Guarantor and the Company specifying the default and shall, subject to Section 3(b) hereof, have the right to direct the Pledge Holder to transfer the Shares to the Lender or its designee if Guarantor and/or the Company has not cured the default within 15 days after receipt of the notice. In such event, the Pledge Holder, acting as agent of Lender, shall, with respect to the Shares, exercise the rights and duties of a Secured Party under the Uniform Commercial Code as enacted in Nevada (the “UCC”), and under any other applicable law as the same may, from time to time, be in effect. Guarantor agrees that any notice by Pledge Holder concerning the sale, disposition or other intended action in connection with the Shares, whether required by the UCC, or otherwise shall constitute reasonable notice to Guarantor if such notice is mailed by registered mail or certified mail, return receipt requested, postage prepaid at least ten days prior to such action. 

 

(b)Notwithstanding anything contained herein to the contrary, in no event shall the Lender, or any affiliate of the Lender, be entitled to exercise incidents of ownership over, own, or convert any portion of the Shares in excess of that portion of Shares that upon conversion of which the sum of: (1) the number of shares of common stock of the Company (the “Common Stock”) beneficially owned by the Lender and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of any securities of the Company or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of the Shares with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Lender and its affiliates of more than 9.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, however, that the limitations set forth in this Section 3(b) may be waived by the Lender only upon, at the election of the Lender, not less than 61 days’ prior notice to the Company and the Pledge Holder, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Lender, as may be specified in such notice of waiver). 

 

4.Disposition of Shares. Upon any disposition of the Shares by Pledge Holder in accordance with the terms of Section 3 (Rights  




and Obligations of the Pledge Holder), Lender shall be entitled to all of the proceeds of any such disposition.

 

 

5.Rights of Beneficial Ownership. Upon an event of default under the Redemption Note, and subject to Section 3(b), Lender shall be deemed the beneficial owner of the Shares and shall have all rights and benefits incident thereto. Lender and Guarantors, and each of them, agree to execute any necessary proxies or other documents to effectuate this right. So long as Guarantor owns the Shares and no event of default has occurred under the Redemption Note, Guarantor shall be entitled to vote any shares comprising the Collateral, subject to any proxies granted by Guarantor. 

 

6.Covenants of Guarantor. Guarantor hereby represents and warrants to Lender that Guarantor has good title (both record and beneficial) to the Collateral, free and clear of all claims, pledges, security interests, liens or encumbrances of every nature whatsoever, and that Guarantor has the right to pledge and grant Lender the security interest in the Collateral granted under this Agreement. Guarantor agrees that, until all sums due under the Redemption Note have been paid in full, Guarantor will not: (a) sell, assign or transfer, or attempt to sell, assign or transfer, any of the Collateral, (b) grant or create, or attempt to grant or create, any security interest, lien, pledge, claim or other encumbrance with respect to any of the Collateral, (c) suffer or permit to continue upon any of the Collateral during the term of this Agreement, an attachment, levy, execution or statutory lien, (d) permit the issuance of any equity of the Company or any other security of the Company which diminishes the value, or rights and preferences of the Shares or otherwise make any change to its capitalization; or (e) amend the rights and preferences of the Shares.  

 

There shall be no substitution of collateral under the terms of this Agreement, without the prior written consent of Lender. 

 

Guarantor hereby agrees to indemnify Lender and Pledge Holder against any direct loss, reasonable cost or out-of-pocket expense incurred by holder in connection with the Redemption Note and Agreement and the exercise of any and all rights pertaining thereto, including, without limitation, all court costs, reasonable attorney’s fees and other costs of collection. 

 

7.Disputes. In the event of a dispute with respect to the terms and provisions of this Agreement, Pledge Holder shall not be required to resolve that dispute or take any action with respect thereto. Pledge Holder may continue to hold the Shares and await final resolution of the dispute by joint written instructions from Guarantor and Lender or by a final determination of a court or arbitration panel of competent jurisdiction. In the alternative, Pledge Holder may deliver the Shares to a court of proper jurisdiction under an appropriate action in interpleader and thereupon be relieved of all responsibility under this Agreement. 

 

8.Release of Shares. When satisfactory proof has been presented to Pledge Holder that all amounts due under the Redemption Note (including accrued interest thereon) have been paid, Pledge Holder shall deliver the Shares with stock power attached to Guarantor and all obligations by and among Guarantor, Lender and Pledge Holder under this Agreement shall thereupon cease. 

 

9.Conduct of Pledge Holder. Pledge Holder shall not be required to exercise any standard of care greater than ordinary care in discharging its duties and obligations under this Agreement and Pledge Holder shall not incur any liability to anyone for any damages, losses or expenses with respect to any action taken or omitted in good faith. Pledge Holder shall have no duties other than those expressly imposed herein. Pledge Holder may rely and shall be protected in relying upon any paper or other document that may be submitted to it in connection with its duties hereunder and that it believes to be genuine and to have been signed or presented by the proper party or parties and shall have no liability or responsibility with respect to the form, execution or validity thereof. Pledge Holder may resign as such following the giving of 30 days prior written notice to the other parties hereto. Similarly, Pledge Holder may be removed and replaced following the giving of 30-days’ prior written notice to Pledge Holder by the other parties hereto. In either event, the duties of Pledge Holder shall terminate 30 days after receipt of such notice (or as of such earlier date as may be mutually agreeable), and Pledge Holder shall then deliver the Shares and any other related materials then in its possession to a successor pledge holder as shall be appointed by the other parties hereto as evidenced by a written notice filed with Pledge Holder. If the other parties hereto have failed to appoint a successor prior to the expiration of 30 days following receipt of the notice of resignation or removal, Pledge Holder may appoint a successor or petition any court of competent jurisdiction for the appointment of a successor pledge holder or for other appropriate relief, and any such resulting appointment shall be binding upon all of the parties hereto. 

 

10.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (1) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (2) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to Lender:

JanBella Group, LLC, Attention: William Alessi 

20311 Chartwell Center Drive, Suite 1469, Cornelius, NC 28031 

E-mail: balessi@alphamodus.com 

 

If to Guarantor

Attention: Orlando Taddeo 




Via di Affogalasino, 105  -  00148 Roma RM 

 

E-mail: otaddeo@mexedia.com 

 

If to Pledge Holder:

Newlan Law Firm, PLLC, Attention: Eric Newlan 

2201 Long Prairie Road, Suite 107-762, Flower Mound, Texas 75022 

E-mail: eric@newlanpllc.com 

 

 

11.Wavier. No delay or omission by Lender in exercising any right or remedy hereunder shall operate as a waiver thereof or of any right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right or remedy. All rights and remedies of Lender hereunder are cumulative. 

 

12.General. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by written agreement subscribed by Guarantor and Lender. An executed original of any such agreement shall be delivered to the Pledge Holder upon its execution and if such agreement affects the right, duties or obligations of the Pledge Holder under this Agreement, it must also be executed and agreed to by the Pledge Holder before the same shall have any legal effect. This Agreement shall be governed under the laws of the State of North Carolina without regard to conflict of law principles; and any action with respect to this Agreement shall be bought in the State of North Carolina, County of Mecklenburg. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Except as required by law, each party to this Agreement shall keep this Agreement, the Redemption Note and the transactions contemplated by these agreements strictly confidential. 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Pledge Agreement on the date first set forth above. 

 

GUARANTOR:

 

MEXEDIA S.p.A. S.B.

 

EXEMPLAR 

By: __________________________

Orlando Taddeo 

President 

 

LENDER:

 

JANBELLA GROUP, LLC

 

EXEMPLAR 

By: ____________________________

William Alessi

Managing Member

 

PLEDGE HOLDER:

 

NEWLAN LAW FIRM, PLLC

 

EXEMPLAR 

By: ___________________________

Eric Newlan

Managing Member

 

ACKNOWLEDGED AND AGREED BY THE COMPANY:

 

RAADR, INC.

 

EXEMPLAR 

By: ________________________

Jacob DiMartino 

Chief Executive Officer 

 

 

 




EXHIBIT C

 

Form of Guaranty

 

 

 

GUARANTY

 

This Guaranty, dated as of October ___, 2024, is made by and between Mexedia S.p.A. S.B. (“Guarantor”), and JanBella Group, LLC, a North Carolina limited liability company (“Lender”). 

 

RECITALS

 

On October ___, 2024, Raadr, Inc., a Nevada corporation (“Borrower”), issued a Secured Promissory Note (the “Redemption Note”) in the principal amount of $540,000.00. A material element of the Redemption Note is, among others, the delivery of a pledge agreement (the “Pledge Agreement”) dated the date hereof by and among Guarantor, Borrower and Lender, whereby Guarantor pledged a total of 75,000 shares of Series F Preferred Stock of the Company (the “Pledged Securities”), to secure the performance when due of all obligations of Borrower pursuant to the Note and this Guaranty.

 

NOW, THEREFORE, in consideration of the premises and in order to induce Lender to consummate the transactions contemplated by the Agreement, Guarantor hereby agrees as follows: 

 

1.Guaranty. Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all obligations of Borrower under the Note (the “Obligations”).  

 

2.Guaranty Absolute. Guarantors, and each of them, guarantee that the Obligations will be performed strictly in accordance with their terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Lender with respect thereto; and if such Obligations are not performed accordingly, Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all Obligations (including, but not limited to, payment). The liability of Guarantor is primary, direct and independent of the obligations of Borrower pursuant to the Note. This Guaranty shall be enforceable against Guarantor in the same manner as if Guarantor were the primary obligor. The liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of: 

 

(a)any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure thereof; 

 

(b)any defense which Guarantor may assert including, but not limited to, failure of consideration, breach of warranty, fraud, payment, statute of frauds, bankruptcy, lack of legal capacity, statute of limitations, lender liability, accord and satisfaction and usury; or 

 

(c)any other circumstance which might otherwise constitute a defense available to, or a discharge  

of, Guarantor.

 

None of the foregoing waivers shall prejudice Lender’s rights under the Note. This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by Lender upon the insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made. 

 

Notwithstanding any of the foregoing provisions of this Section 2 to the contrary, should Guarantor deliver the Pledged Securities to Lender in accordance with the terms of the Pledge Agreement upon Borrower’s failure to fully and promptly perform its Obligations under the Note, then Guarantor’s guaranty hereunder shall be deemed to be fully satisfied and Guarantor shall have no further liability to Lender hereunder. 

 

3.Matters Being Waived. Guarantor hereby waives promptness, diligence, notice of acceptance, and any other notice with respect to any of the obligations of the Note and this Guaranty and any requirement that Lender exhausts any right or take any action against Borrower or any other person or entity or any collateral. 

 

4.Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Guaranty shall be brought only in the state courts of North Carolina or in the federal courts located in the state and City of Charlotte, North Carolina. The parties to this Guaranty hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Guarantor waives trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Guaranty or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Guaranty, any agreement or any other document delivered in connection with this Guaranty by mailing a copy thereof via  




registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guaranty and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

 

5.Miscellaneous Provisions.  

 

(a)Amendments. No amendment or waiver of any provision of this Guaranty nor consent to any departure by Guarantors therefrom shall in any event be effective unless the same shall be in writing and signed by Lender and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

 

(b)No Waiver; Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

 

(c)Headings. The headings herein are for convenience only and shall not limit or define the meaning of the provisions of this Guaranty. 

 

(d)Severability. If any provision of this Guaranty for any reason shall be held to be illegal, invalid or unenforceable, such illegality shall not affect any other provision of this Guaranty, this Guaranty shall be amended so as to enforce the illegal, invalid or unenforceable provision to the maximum extent permitted by applicable law, and the parties shall cooperate in good faith to further modify this Guaranty so as to preserve to the maximum extent possible the intended benefits to be received by the parties. 

 

(e)Continuing Guaranty. This Guaranty is a continuing guaranty and shall (1) remain in full force and effect until payment in full of the obligations of the Note and all other amounts payable under this Guaranty, (2) be binding upon Guarantors, and each of them, their respective successors and respective assigns, and (3) inure to the benefit of and be enforceable by Lender and its successors, transferees and assigns. 

 

IN WITNESS WHEREOF, Guarantors have duly executed, or caused to be duly executed, and delivered this Guaranty as of the date first above written. 

 

 

GUARANTOR: 

 

MEXEDIA S.p.A. S.B. 

 

EXEMPLAR 

By: __________________________ 

Orlando Taddeo 

President 

 

 

 

 

 

 

 

 

 



PLEDGE AGREEMENT

 

This Pledge Agreement (the “Agreement”) is made and entered as of October 8, 2024, by and among Mexedia S.p.A. S.B. (“Guarantor”), JanBella Group, LLC, a North Carolina limited liability company (“Lender”), and the undersigned holder of the pledged shares (“Pledge Holder”). 

 

RECITALS

 

Raadr, Inc., a Nevada corporation (the “Company”), issued a Secured Promissory Note, dated as of the date of this Agreement (the “Redemption Note”) to Lender, whereby the Company owes payment obligations to Lender.

 

Guarantor has agreed to secure the Company’s payment obligations to Lender under the Redemption Note with a guaranty and a pledge of, and thereby create a security interest in favor of Lender in, a total of 75,000 shares of Series F Preferred Stock of the Company (the “Shares”), the Shares representing 100% of the issued and outstanding shares of Series F Preferred Stock of the Company.

 

AGREEMENT

 

1.Security Interest. Guarantor hereby grants to Lender a security interest in (a) the Shares, (b) all Dividends (as defined below), and (c) all Additional Securities (as defined below); to secure payment of the Redemption Note and performance of all Guarantor’s obligations under this Agreement. For purposes of this Agreement, the Shares, all Dividends and all Additional Securities will be collectively referred to as the “Collateral”. If any stock dividend, reclassification, readjustment, stock split or other change is declared or made with respect to the Collateral, or if warrants or any other rights, options or securities are issued in respect of the Collateral (“Additional Securities”), then all new, substituted and/or additional shares or other securities issued by reason of such change or by reason of the exercise of such warrants, rights, options or securities, will be (if delivered to Guarantor, immediately surrendered to Lender care of the Pledge Holder and) pledged to Lender to be held under the terms of this Agreement as and in the same manner as the Collateral is held hereunder. 

 

2.Appointment of the Pledge Holder. Guarantor and Lender hereby designate and appoint the Pledge Holder as such for the purposes hereinafter set forth. Guarantor hereby deposits with the Pledge Holder (a) the Shares, as are represented by the book entry statement in the name of Guarantor, (b) the original Stock Power, copies of which are attached hereto as Exhibit A, and (c) documentation waiving the Medallion Signature Guaranty requirement signed by the Company and Manhattan Transfer Registrar Co., in form satisfactory to Lender. 

 

3.Rights and Obligations of the Pledge Holder.  

 

(a)Guarantor and Lender hereby authorize the Pledge Holder to keep and preserve the Shares in its possession pending payment in full of the Redemption Note. If a default occurs under the terms of this Agreement or the Redemption Note, then Lender shall provide written notice to Guarantor and the Company specifying the default and shall, subject to Section 3(b) hereof, have the right to direct the Pledge Holder to transfer the Shares to the Lender or its designee if Guarantor and/or the Company has not cured the default within 15 days after receipt of the notice. In such event, the Pledge Holder, acting as agent of Lender, shall, with respect to the Shares, exercise the rights and duties of a Secured Party under the Uniform Commercial Code as enacted in Nevada (the “UCC”), and under any other applicable law as the same may,  


PLEDGE AGREEMENT   |   PAGE 1



from time to time, be in effect. Guarantor agrees that any notice by Pledge Holder concerning the sale, disposition or other intended action in connection with the Shares, whether required by the UCC, or otherwise shall constitute reasonable notice to Guarantor if such notice is mailed by registered mail or certified mail, return receipt requested, postage prepaid at least ten days prior to such action.

 

(b)Notwithstanding anything contained herein to the contrary, in no event shall the Lender, or any affiliate of the Lender, be entitled to exercise incidents of ownership over, own, or convert any portion of the Shares in excess of that portion of Shares that upon conversion of which the sum of: (1) the number of shares of common stock of the Company (the “Common Stock”) beneficially owned by the Lender and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of any securities of the Company or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of the Shares with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Lender and its affiliates of more than 9.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, however, that the limitations set forth in this Section 3(b) may be waived by the Lender only upon, at the election of the Lender, not less than 61 days’ prior notice to the Company and the Pledge Holder, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Lender, as may be specified in such notice of waiver). 

 

4.Disposition of Shares. Upon any disposition of the Shares by Pledge Holder in accordance with the terms of Section 3 (Rights and Obligations of the Pledge Holder), Lender shall be entitled to all of the proceeds of any such disposition. 

 

5.Rights of Beneficial Ownership. Upon an event of default under the Redemption Note, and subject to Section 3(b), Lender shall be deemed the beneficial owner of the Shares and shall have all rights and benefits incident thereto. Lender and Guarantors, and each of them, agree to execute any necessary proxies or other documents to effectuate this right. So long as Guarantor owns the Shares and no event of default has occurred under the Redemption Note, Guarantor shall be entitled to vote any shares comprising the Collateral, subject to any proxies granted by Guarantor. 

 

6.Covenants of Guarantor. Guarantor hereby represents and warrants to Lender that Guarantor has good title (both record and beneficial) to the Collateral, free and clear of all claims, pledges, security interests, liens or encumbrances of every nature whatsoever, and that Guarantor has the right to pledge and grant Lender the security interest in the Collateral granted under this Agreement. Guarantor agrees that, until all sums due under the Redemption Note have been paid in full, Guarantor will not: (a) sell, assign or transfer, or attempt to sell, assign or transfer, any of the Collateral, (b) grant or create, or attempt to grant or create, any security interest, lien, pledge, claim or other encumbrance with respect to any of the Collateral, (c) suffer or permit to continue upon any of the Collateral during the term of this Agreement, an attachment, levy, execution or statutory lien, (d) permit the issuance of any equity of the Company or any other security of the Company which diminishes the value, or rights and preferences of the Shares or otherwise make any change to its capitalization; or (e) amend the rights and preferences of the Shares.  

 

There shall be no substitution of collateral under the terms of this Agreement, without the prior written consent of Lender. 


PLEDGE AGREEMENT   |   PAGE 2



Guarantor hereby agrees to indemnify Lender and Pledge Holder against any direct loss, reasonable cost or out-of-pocket expense incurred by holder in connection with the Redemption Note and Agreement and the exercise of any and all rights pertaining thereto, including, without limitation, all court costs, reasonable attorney’s fees and other costs of collection. 

 

7.Disputes. In the event of a dispute with respect to the terms and provisions of this Agreement, Pledge Holder shall not be required to resolve that dispute or take any action with respect thereto. Pledge Holder may continue to hold the Shares and await final resolution of the dispute by joint written instructions from Guarantor and Lender or by a final determination of a court or arbitration panel of competent jurisdiction. In the alternative, Pledge Holder may deliver the Shares to a court of proper jurisdiction under an appropriate action in interpleader and thereupon be relieved of all responsibility under this Agreement. 

 

8.Release of Shares. When satisfactory proof has been presented to Pledge Holder that all amounts due under the Redemption Note (including accrued interest thereon) have been paid, Pledge Holder shall deliver the Shares with stock power attached to Guarantor and all obligations by and among Guarantor, Lender and Pledge Holder under this Agreement shall thereupon cease. 

 

9.Conduct of Pledge Holder. Pledge Holder shall not be required to exercise any standard of care greater than ordinary care in discharging its duties and obligations under this Agreement and Pledge Holder shall not incur any liability to anyone for any damages, losses or expenses with respect to any action taken or omitted in good faith. Pledge Holder shall have no duties other than those expressly imposed herein. Pledge Holder may rely and shall be protected in relying upon any paper or other document that may be submitted to it in connection with its duties hereunder and that it believes to be genuine and to have been signed or presented by the proper party or parties and shall have no liability or responsibility with respect to the form, execution or validity thereof. Pledge Holder may resign as such following the giving of 30 days prior written notice to the other parties hereto. Similarly, Pledge Holder may be removed and replaced following the giving of 30-days’ prior written notice to Pledge Holder by the other parties hereto. In either event, the duties of Pledge Holder shall terminate 30 days after receipt of such notice (or as of such earlier date as may be mutually agreeable), and Pledge Holder shall then deliver the Shares and any other related materials then in its possession to a successor pledge holder as shall be appointed by the other parties hereto as evidenced by a written notice filed with Pledge Holder. If the other parties hereto have failed to appoint a successor prior to the expiration of 30 days following receipt of the notice of resignation or removal, Pledge Holder may appoint a successor or petition any court of competent jurisdiction for the appointment of a successor pledge holder or for other appropriate relief, and any such resulting appointment shall be binding upon all of the parties hereto. 

 

10.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (1) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (2) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 


PLEDGE AGREEMENT   |   PAGE 3



If to Lender:

JanBella Group, LLC, Attention: William Alessi

20311 Chartwell Center Drive, Suite 1469, Cornelius, NC 28031

E-mail: balessi@alphamodus.com

 

If to Guarantor:

Attention: Orlando Taddeo

Via di Affogalasino, 105  -  00148 Roma RM

 

E-mail: otaddeo@mexedia.com

 

If to Pledge Holder:

Newlan Law Firm, PLLC, Attention: Eric Newlan

2201 Long Prairie Road, Suite 107-762, Flower Mound, Texas 75022

E-mail: eric@newlanpllc.com

 

11.Wavier. No delay or omission by Lender in exercising any right or remedy hereunder shall operate as a waiver thereof or of any right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right or remedy. All rights and remedies of Lender hereunder are cumulative. 

 

12.General. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by written agreement subscribed by Guarantor and Lender. An executed original of any such agreement shall be delivered to the Pledge Holder upon its execution and if such agreement affects the right, duties or obligations of the Pledge Holder under this Agreement, it must also be executed and agreed to by the Pledge Holder before the same shall have any legal effect. This Agreement shall be governed under the laws of the State of North Carolina without regard to conflict of law principles; and any action with respect to this Agreement shall be bought in the State of North Carolina, County of Mecklenburg. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Except as required by law, each party to this Agreement shall keep this Agreement, the Redemption Note and the transactions contemplated by these agreements strictly confidential. 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 

 

 


PLEDGE AGREEMENT   |   PAGE 4



IN WITNESS WHEREOF, the parties have executed and delivered this Pledge Agreement on the date first set forth above. 

 

GUARANTOR:

 

MEXEDIA S.p.A. S.B.

 

 

By: /s/ Orlando Taddeo

Orlando Taddeo 

President 

 

LENDER:

 

JANBELLA GROUP, LLC

 

 

By: /s/ William Alessi

William Alessi

Managing Member

 

PLEDGE HOLDER:

 

NEWLAN LAW FIRM, PLLC

 

 

By: /s/ Eric Newlan

Eric Newlan

Managing Member

 

ACKNOWLEDGED AND AGREED BY THE COMPANY:

 

RAADR, INC.

 

 

By: /s/ Jacob DiMartino

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 


PLEDGE AGREEMENT   |   PAGE 5


GUARANTY

 

This Guaranty, dated as of October 8, 2024, is made by and between Mexedia S.p.A. S.B. (“Guarantor”), and JanBella Group, LLC, a North Carolina limited liability company (“Lender”). 

 

RECITALS

 

On October 8, 2024, Raadr, Inc., a Nevada corporation (“Borrower”), issued a Secured Promissory Note (the “Redemption Note”) in the principal amount of $540,000.00. A material element of the Redemption Note is, among others, the delivery of a pledge agreement (the “Pledge Agreement”) dated the date hereof by and among Guarantor, Borrower and Lender, whereby Guarantor pledged a total of 75,000 shares of Series F Preferred Stock of the Company (the “Pledged Securities”), to secure the performance when due of all obligations of Borrower pursuant to the Note and this Guaranty.

 

NOW, THEREFORE, in consideration of the premises and in order to induce Lender to consummate the transactions contemplated by the Agreement, Guarantor hereby agrees as follows: 

 

1.Guaranty. Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all obligations of Borrower under the Note (the “Obligations”).  

 

2.Guaranty Absolute. Guarantors, and each of them, guarantee that the Obligations will be performed strictly in accordance with their terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Lender with respect thereto; and if such Obligations are not performed accordingly, Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all Obligations (including, but not limited to, payment). The liability of Guarantor is primary, direct and independent of the obligations of Borrower pursuant to the Note. This Guaranty shall be enforceable against Guarantor in the same manner as if Guarantor were the primary obligor. The liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of: 

 

(a)any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure thereof; 

 

(b)any defense which Guarantor may assert including, but not limited to, failure of consideration, breach of warranty, fraud, payment, statute of frauds, bankruptcy, lack of legal capacity, statute of limitations, lender liability, accord and satisfaction and usury; or 

 

(c)any other circumstance which might otherwise constitute a defense available to, or a discharge of, Guarantor. 

 

None of the foregoing waivers shall prejudice Lender’s rights under the Note. This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by Lender upon the insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made. 

 

Notwithstanding any of the foregoing provisions of this Section 2 to the contrary, should Guarantor deliver the Pledged Securities to Lender in accordance with the terms of the Pledge Agreement upon Borrower’s failure to fully and promptly perform its Obligations under the Note, then Guarantor’s guaranty hereunder shall be deemed to be fully satisfied and Guarantor shall have no further liability to Lender  


GUARANTY   |   PAGE 1



hereunder.

 

3.Matters Being Waived. Guarantor hereby waives promptness, diligence, notice of acceptance, and any other notice with respect to any of the obligations of the Note and this Guaranty and any requirement that Lender exhausts any right or take any action against Borrower or any other person or entity or any collateral. 

 

4.Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Guaranty shall be brought only in the state courts of North Carolina or in the federal courts located in the state and City of Charlotte, North Carolina. The parties to this Guaranty hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Guarantor waives trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Guaranty or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Guaranty, any agreement or any other document delivered in connection with this Guaranty by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guaranty and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

5.Miscellaneous Provisions.  

 

(a)Amendments. No amendment or waiver of any provision of this Guaranty nor consent to any departure by Guarantors therefrom shall in any event be effective unless the same shall be in writing and signed by Lender and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

 

(b)No Waiver; Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 

 

(c)Headings. The headings herein are for convenience only and shall not limit or define the meaning of the provisions of this Guaranty. 

 

(d)Severability. If any provision of this Guaranty for any reason shall be held to be illegal,  

invalid or unenforceable, such illegality shall not affect any other provision of this Guaranty, this Guaranty shall be amended so as to enforce the illegal, invalid or unenforceable provision to the maximum extent permitted by applicable law, and the parties shall cooperate in good faith to further modify this Guaranty so as to preserve to the maximum extent possible the intended benefits to be received by the parties.


GUARANTY   |   PAGE 2



(e)Continuing Guaranty. This Guaranty is a continuing guaranty and shall (1) remain in full force and effect until payment in full of the obligations of the Note and all other amounts payable under this Guaranty, (2) be binding upon Guarantors, and each of them, their respective successors and respective assigns, and (3) inure to the benefit of and be enforceable by Lender and its successors, transferees and assigns. 

 

IN WITNESS WHEREOF, Guarantors have duly executed, or caused to be duly executed, and delivered this Guaranty as of the date first above written. 

 

 

GUARANTOR: 

 

MEXEDIA S.p.A. S.B. 

 

 

By: /s/ Orlando Taddeo 

Orlando Taddeo 

President 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


GUARANTY   |   PAGE 3

EXCHANGE AGREEMENT

 

This Exchange Agreement (this “Agreement”) is entered into as of October 1, 2024, by and between Raadr, Inc., a Nevada corporation (the “Company”), and FirstFire Global Opportunity Fund, LLC (the “Investor” and, together with the Company, the “Parties”).

 

WHEREAS, the Company currently is indebted to Investor in the aggregate amount described on Exhibit A attached hereto and made a part hereof (the “Company Indebtedness”); and

 

WHEREAS, certain unspecified disputes (the “Unspecified Disputes”) may have arisen between the Parties in respect of the Company Indebtedness, there terms and conditions thereof, the payments that may be due and owning thereon or the actions of the Company in connection therewith; and

 

WHEREAS, subject to the terms and conditions set forth herein, the Company and the Investor desire to enter into a transaction to settle the Unspecified Disputes wherein the Company will issue to the Investor a $25,000.00 principal amount promissory note (the “Exchange Note”), in the form of Exhibit B attached hereto, in exchange for the Company Indebtedness, including all principal and accrued interest currently due and payable thereunder.

 

NOW, THEREFORE, in consideration of the rights and benefits that they will each receive in connection with this Agreement, the Parties, intending to be legally bound, agree as follows:

 

1.Exchange. On the Closing Date (as defined below), subject to the terms and conditions of this Agreement, the Investor shall, and the Company shall, pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Section 4(a)(2) of the Securities Act, exchange the Company Indebtedness held by the Investor for the Exchange Note on the basis provided for herein. Subject to the conditions set forth herein, the exchange of the Company Indebtedness for the Exchange Note shall take place remotely via electronic delivery of signatures and documents within five (5) days of the date hereof, or at such other time and place as the Company and the Investor mutually agree (the “Closing” and such date the “Closing Date”). At the Closing, the following transactions shall occur (such transaction, the “Exchange”): 

 

(a)On the Closing Date, in exchange for the Company Indebtedness, the Company shall issue and deliver the Exchange Note to the Investor. 

 

(b)Upon receipt of the Exchange Note in accordance with Section 1(a), all of the Investor’s rights under the Company Indebtedness shall be extinguished. 


EXCHANGE AGREEMENT | PAGE 1



(c)On the Closing Date, the Investor shall be deemed for all corporate purposes to have become the holder of record of the Exchange Note, and the Company Indebtedness shall be deemed for all corporate purposes to have been cancelled, irrespective of the date such Exchange Note are delivered to the Investor in accordance herewith. 

 

2.Lock-Up and Leak-Out Agreements. 

 

(a)Lock-up. Beginning on the Closing Date and ending on the date on which the Company’s next-filed Offering Statement on Form 1-A (the “Reg A Offering”) shall have been “qualified” (the “Qualification Date”) by the Securities and Exchange Commission (the “Lock-Up Period”), with respect to shares of the Company’s common stock issuable on conversion of the Exchange Note (the “Conversion Shares”), Investor agrees that it shall not, directly or indirectly, offer, issue, sell, contract to sell (including, without limitation, any short sale), grant any option for the sale of, pledge, or otherwise dispose of or transfer (collectively, a “Disposition”) any of the Conversion Shares. 

The Company agrees that its next-filed Reg A Offering shall be filed on or before October 31, 2024.

 

(b)Leak-Out. Beginning on the Qualification Date and continuing for the twelve- month period immediately thereafter (the “Leak-Out Period”), Investor agrees that it shall sell the Conversion Shares in 12 equal monthly parts (the “Leak-Out Monthly Limits”) during the Leak-Out Period; provided, however, that, during each month during the Leak-Out Period, the aggregate number of Conversion Shares that Investor shall have the right, but not the obligation, to sell into the public markets, on a per-calendar-week basis, shall not exceed ten percent (10%) of the number of shares of Company common stock that were traded in the public markets during the immediately preceding calendar week (the “Weekly Leak-Out Amount”), as reported by OTC Markets Group, Inc. or any successor entity or by a national securities exchange in the event that, at such time, the Company’s common stock is listed thereof (any such entity of exchange, the “OTCM Successor”). 

 

(c)Cumulative Disposition. If, during any calendar week within the Leak-Out Period, Investor has not engaged in one or more Disposition transactions, the cumulative amount of which has resulted in less than the cumulative Weekly Leak-Out Amount during the Leak-Out Period then-to-date, then Investor shall have the right, but not the obligation, to engage in one or more additional Disposition transactions, such that, at the conclusion of such additional Disposition transaction(s), Investor will have engaged in Disposition transactions in an amount that does not exceed the cumulative Weekly Leak-Out Amount during the Leak-Out Period then-to-date. 

 

(d)OTCM Website. For purposes of determining the monthly trading volume of the shares of Company common stock, such volume information shall be derived from data published on the website of OTCM or the website of a relevant OTCM Successor. 


EXCHANGE AGREEMENT | PAGE 2



(e)Transferee Restrictions. Any transferee of any of the Conversion Shares, other than as permitted in connection with a waiver (as referenced in subparagraph (f) below) or as otherwise permitted pursuant to the terms hereof, shall be subject to all of the terms and conditions of this Agreement and, solely for such purposes, any such transferee shall be included in the definition of Investor. 

 

(f)Company Waiver. Notwithstanding anything to the contrary contained herein, the Company may, in its sole discretion and in good faith, at any time and from time to time, waive any of the conditions or restrictions in its favor contained in this Agreement. 

 

3.Closing Conditions. 

 

(a)Conditions to the Investor’s Obligations. The obligation of the Investor to consummate the Exchange is subject to the fulfillment, to the Investor’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(1)Representations and Warranties. The representations and warranties of the Company contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 

 

(2)No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

(3)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to the Investor, and the Investor shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request. 

 

(4)Issuance. The Company shall have issued to the Investor the Exchange 

Note.

 

(b)Conditions to the Company’s Obligations. The obligation of the Company to consummate the Exchange is subject to the fulfillment, to the Company’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(1)Representations and Warranties. The representations and warranties of the Investor contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 


EXCHANGE AGREEMENT | PAGE 3



(2)No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit, or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

(3)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to the Company and the Company shall have received all such counterpart originals or certified or other copies of such documents as the Company may reasonably request. 

 

4.Representations and Warranties of the Company. The Company hereby represents and warrants to the Investor as of the date hereof as follows: 

 

(a)Organization and Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of Nevada. The Company has all requisite corporate power and authority to own and operate its properties and assets and to carry on its business as presently conducted. The Company is duly qualified and authorized to transact business and is in good standing as a foreign corporation in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business, properties or financial condition. 

 

(b)Corporate Power. The Company has all requisite legal and corporate power and authority to execute and deliver this Agreement, to issue the Exchange Note hereunder, and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby. 

 

(c)Authorization. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement, the authorization, sale, issuance and delivery of the Exchange Note and the performance of all of the Company’s obligations hereunder have been taken or will be taken prior to the Exchange. This Agreement has been duly executed by the Company and constitutes valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms, subject to applicable law. 

 

(d)Capitalization. As of the date of this Agreement, the authorized capital stock of the Company consists of: 15,000,000,000 shares of common stock, , par value $0.001 per share, of which 4,433,149,661 shares are issued and outstanding; and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and 1,000,000 shares of which are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and no shares of which are issued and outstanding. All of the Company’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 


EXCHANGE AGREEMENT | PAGE 4



(e)Valid Issuance of the Exchange Note. The Exchange Note, when issued and delivered in accordance with the terms of this Agreement, for the consideration expressed herein, will be duly and validly issued and fully enforceable against the Company. 

 

(f)Consents; Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any Person, not already obtained, is required in connection with the execution and delivery of this Agreement by the Company or the consummation by the Company of the transactions provided for herein and therein. As used herein, “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind. 

 

(g)Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company, the Exchange Note or any of the Company’s officers or directors in their capacities as such. 

 

(h)Validity; Enforcement; No Conflicts. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby will not (1) result in a violation of the organizational documents of the Company, (2) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or by which it is bound, or (3) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities or “blue sky” laws) applicable to the Company, except in the case of clause (2) above, for such conflicts, defaults or rights which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder. 

(i)Offering. Subject in part on the accuracy of the Investor’s representations herein, the offer, sale and issuance of the Exchange Note in conformity with the terms of this Agreement constitute transactions exempt from registration of under the Securities Act and from all applicable state securities laws. The sole consideration for the issuance of the Exchange Note is the Investor’s surrender of the Company Indebtedness. 

 

5.Representations and Warranties of the Investor. Investor hereby represents and warrants as of the date hereof to the Company as follows: 


EXCHANGE AGREEMENT | PAGE 5



(a)Corporate Power. Investor has all requisite legal and corporate power and authority to execute and deliver this Agreement, and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby. 

 

(b)Authorization. All corporate action on the part of Investor, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the performance of all of Investor’s obligations hereunder have been taken or will be taken prior to the Exchange. This Agreement has been duly executed by Investor and constitutes valid and legally binding obligations of Investor, enforceable against Investor in accordance with their respective terms, subject to applicable law. 

 

(c)Own Account. Investor is acquiring the Exchange Note for its own account. 

 

(d)Investment Purpose. As of the Exchange, Investor is purchasing the Exchange Note, including the shares of common stock issuable upon conversion of or otherwise pursuant to the Exchange Note, for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act; provided, however, that by making the representations herein, Investor does not agree to hold any of such securities for any minimum or other specific term and reserves the right to dispose of such securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. 

 

(e)Accredited Investor Status. Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”). 

 

(f)Legends. Investor understands that until such time as the Exchange Note, including the shares of common stock issuable upon conversion of or otherwise pursuant to the Exchange Note, have been registered under the Securities Act or may be sold pursuant to Rule 144, Rule 144A under the Securities Act, Regulation A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, such securities may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such securities): 

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE/EXERCISABLE] HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”


EXCHANGE AGREEMENT | PAGE 6



The legend set forth above shall be removed and the Company shall issue a certificate or book entry statement for the applicable shares of common stock without such legend to the holder upon which it is stamped or (as requested by such holder) issue the applicable shares of common stock to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository Trust Company (“DTC”), if, unless otherwise required by applicable state securities laws, (a) such security is registered for sale under an effective registration statement filed under the Securities Act or otherwise may be sold pursuant to Rule 144, Rule 144A, Regulation A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) the Company or Investor provides the an opinion of counsel to the effect that a public sale or transfer of such security may be made without registration under the Securities Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. Investor agrees to sell all such securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.

6.No Short Sales. Investor, its successors, assigns and affiliates, agrees that so long as the Exchange Note are not sold, Investor and Investor’s affiliates shall not, directly or indirectly, enter into or effect “short sales” of the common stock of the Company or hedging transaction which establishes a short position with respect to the common stock of the Company. The Company acknowledges and agrees that upon delivery of a conversion notice by the Investor, the Investor immediately owns the shares of common stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales. 

 

7.Miscellaneous. 

 

(a)Entire Agreement. This Agreement, together with the schedules and exhibits attached hereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written with respect to such matters. 

 

(b)Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (2) personally served, (2) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (3) delivered by reputable air courier service with charges prepaid, or (4) transmitted by hand delivery or e-mail, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. 

 

Any notice or other communication required or permitted to be given hereunder shall be deemed effective (A) upon hand delivery or delivery by e-mail at the address or e-mail address designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (B) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to


EXCHANGE AGREEMENT | PAGE 7



such address, or upon actual receipt of such mailing, whichever shall occur first. Such notice shall be properly delivered to the address set forth beneath the name of such party below:

 

If to Investor:Firstfire Global Opportunity Fund, LLC 1040 1st Avenue 

New York, New York 10022

Attention: Eli Fireman, Managing Member E-mail: eli@firstfirecap.com

 

If to the Company:Raadr, Inc. 

7950 E. Redfield Road, Unit 210

Scottsdale, Arizona 85260 Attention: Chief Executive Officer ir@raadr.com

 

(c)Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and the Investor, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

 

(d)Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

 

(e)Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. 

 

(f)No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

 

(g)Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of Las Vegas, Nevada (the “Nevada Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Nevada Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the 


EXCHANGE AGREEMENT | PAGE 8



jurisdiction of such Nevada Courts, or such Nevada Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

(h)Survival. The representations and warranties contained herein shall survive the Exchange for the applicable statute of limitations. 

 

(i)Execution. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

 

(j)Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ, an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

 

(k)Construction. The parties hereto agree that each of them and/or their respective counsel have reviewed and have had an opportunity to revise this Agreement and the schedules attached hereto. This Agreement shall be construed according to its fair meaning and not strictly for or against any party. The word “including” shall be construed to include the words “without limitation.” In this Agreement, unless the context otherwise requires, references to the singular shall include the plural and vice versa. 

 

[ SIGNATURE PAGE FOLLOWS ]


EXCHANGE AGREEMENT | PAGE 9



[ SIGNATURE PAGE TO EXCHANGE AGREEMENT ]

 

 

 

IN WITNESS WHEREOF, the Parties have caused this Exchange Agreement to be duly executed and delivered as of the date and year first written above.

 

COMPANY:INVESTOR: 

 

RAADR, INC.FIRSTFIRE GLOBAL OPPORTUNITY FUND LLC 

 

 

By: /s/ Jacob DiMartinoBy: /s/ Eli Fireman 

Jacob DiMartinoEli Fireman 

Chief Executive OfficerManaging Member 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


EXCHANGE AGREEMENT | PAGE 10



Exhibit A

 

Description of the Company Indebtedness

 

 

Total Company Indebtedness: $150,000.00




Exhibit B

 

Form of Exchange Note

 

 

 

Delivered separately.


SETTLEMENT AGREEMENT

 

This Settlement Agreement (this “Agreement”) is entered into as of November 6, 2024, by and between Raadr, Inc., a Nevada corporation (the “Company”), and Firstfire Global Opportunity Fund, LLC (“Investor”, and, together with the Company, the “Parties”).

 

WHEREAS, the Company currently is indebted to Investor in the aggregate amount of $25,000.00, as more particularly described on Exhibit A attached hereto and made a part hereof (the “Company Obligations”), there being no other Company instruments held by Investor; and

 

WHEREAS, certain unspecified disputes (the “Unspecified Disputes”) may have arisen between the Parties in respect of the Company Obligations, the terms and conditions thereof, the payments that may be due and owning thereon, the number of shares to which Investor may have rights or the actions of the Company in connection therewith; and

 

WHEREAS, subject to the terms and conditions set forth herein, the Company and Investor desire to enter into a transaction to settle the Unspecified Disputes wherein the Company will issue to Investor a total of 100,000,000 shares of Company common stock (the “Settlement Shares”) on the terms and conditions herein.

 

NOW, THEREFORE, in consideration of the rights and benefits that they will each receive in connection with this Agreement, the Parties, intending to be legally bound, agree as follows:

 

1.Settlement. In exchange for the Company Obligations held by Investor, the Company shall issue and deliver the Settlement Shares to Investor, at the Closing (as defined below), pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Section 4(a)(2) of the Securities Act. 

 

2.Closing. On the Closing Date (as defined below), subject to the terms and conditions of this Agreement, the Company shall deliver (a) the Closing Shares and (b) the Reserve Letter, and Investor shall exchange the Company Obligations held by Investor therefor. Upon receipt of the Closing Shares and the Reserve Letter, all of Investor’s rights under the Company Obligations shall be extinguished. The exchange described in the foregoing sentence shall take place remotely via electronic delivery of signatures and documents within one (1) day of the date hereof, or at such other time and place as the Company and Investor mutually agree (the “Closing” and such date the “Closing Date”). 


SETTLEMENT AGREEMENT | PAGE 1


3.Leak-Out Agreement. The leak-out provisions contained in that certain Exchange Agreement dated as of October 1, 2024 (the “Exchange Agreement”), between the Parties shall survive so long as Investor shall hold any of the shares issued pursuant to the Exchange Agreement and/or this Agreement. 

 

4.Closing Conditions. 

 

(a)Conditions to Investor’s Obligations. The obligation of Investor to consummate the Closing is subject to the fulfillment, to Investor’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(1)Representations and Warranties. The representations and warranties of the Company contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 

 

(2)No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

(3)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to Investor, and Investor shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request. 

 

(4)Issuance. The Company shall have issued to Investor the Settlement 

Shares.

 

(b)Conditions to the Company’s Obligations. The obligation of the Company to consummate the Closing is subject to the fulfillment, to the Company’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(1)Representations and Warranties. The representations and warranties of Investor contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 

 

(2)No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit, or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

(3)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to the Company and the Company shall have received all 


SETTLEMENT AGREEMENT | PAGE 2


such counterpart originals or certified or other copies of such documents as the Company may reasonably request.

 

5.Representations and Warranties of the Company. The Company hereby represents and warrants to Investor as of the date hereof as follows: 

 

(a)Organization and Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of Nevada. The Company has all requisite corporate power and authority to own and operate its properties and assets and to carry on its business as presently conducted. The Company is duly qualified and authorized to transact business and is in good standing as a foreign corporation in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business, properties or financial condition. 

 

(b)Corporate Power. The Company has all requisite legal and corporate power and authority to execute and deliver this Agreement, to issue the Settlement Shares hereunder, and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby. 

 

(c)Authorization. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement, the authorization, sale, issuance and delivery of the Settlement Shares and the performance of all of the Company’s obligations hereunder have been taken or will be taken prior to the Closing. This Agreement has been duly executed by the Company and constitutes valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms, subject to applicable law. 

 

(d)Capitalization. As of the date of this Agreement, the authorized capital stock of the Company consists of: 15,000,000,000 shares of common stock, , par value $0.001 per share, of which 5,101,760,661 shares are issued and outstanding; and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and none of which shares are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and 75,000 shares of which are issued and outstanding. All of the Company’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 

 

(e)Issuance of Settlement Shares. The issuance, sale and delivery of the Settlement Shares in accordance with this Agreement have been duly authorized by all necessary corporate action on the part of the Company. The Settlement Shares, when issued, sold and delivered in accordance with the terms and conditions of this Agreement, will be duly and validly issued, fully paid and non-assessable. 

 

(f)Consents; Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any Person, not already obtained, is required in connection with the execution and delivery of this Agreement by the Company or the consummation by the Company 


SETTLEMENT AGREEMENT | PAGE 3


of the transactions provided for herein and therein. As used herein, “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

(g)Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company, the Settlement Shares or any of the Company’s officers or directors in their capacities as such. 

 

(h)Validity; Enforcement; No Conflicts. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby will not (1) result in a violation of the organizational documents of the Company, (2) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or by which it is bound, or (3) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities or “blue sky” laws) applicable to the Company, except in the case of clause (2) above, for such conflicts, defaults or rights which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder. 

(i)Offering. Subject in part on the accuracy of Investor’s representations herein, the offer, sale and issuance of the Settlement Shares in conformity with the terms of this Agreement constitute transactions exempt from registration of under the Securities Act and from all applicable state securities laws. The sole consideration for the issuance of the Settlement Shares is Investor’s surrender of the Company Obligations. 

 

6.Representations and Warranties of Investor. Investor hereby represents and warrants as of the date hereof to the Company as follows: 

 

(a)Corporate Power. Investor has all requisite legal and corporate power and authority to execute and deliver this Agreement, and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby. 

 

(b)Authorization. All corporate action on the part of Investor, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement and the performance of all of Investor’s obligations hereunder have been taken or will be taken prior to the Closing. This Agreement has been duly executed by Investor and 


SETTLEMENT AGREEMENT | PAGE 4


constitutes valid and legally binding obligations of Investor, enforceable against Investor in accordance with their respective terms, subject to applicable law.

 

(c)Own Account. Investor is acquiring the Settlement Shares for its own 

account.

 

(d)Investment Purpose. As of the Closing, Investor is purchasing the Settlement Shares for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act; provided, however, that by making the representations herein, Investor does not agree to hold any of such securities for any minimum or other specific term and reserves the right to dispose of such securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. 

 

(e)Accredited Investor Status. Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”). 

 

(f)Legends. Investor understands that until such time as the Settlement Shares have been registered under the Securities Act or may be sold pursuant to Rule 144, Rule 144A under the Securities Act, Regulation A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, such securities may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such securities): 

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE/EXERCISABLE] HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The legend set forth above shall be removed and the Company shall issue a certificate or book entry statement for the applicable shares of common stock without such legend to the holder upon which it is stamped or (as requested by such holder) issue the applicable shares of common stock to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository Trust Company (“DTC”), if, unless otherwise required by applicable state securities laws, (a) such security is registered for sale under an effective registration statement filed under the Securities Act or otherwise may be sold pursuant to Rule 144, Rule 144A, Regulation A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) the Company or Investor provides the an opinion of counsel to the effect that a public sale or transfer of such security may be made without registration under the Securities Act, which opinion shall be accepted by the Company so that the


SETTLEMENT AGREEMENT | PAGE 5


sale or transfer is effected. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. Investor agrees to sell all such securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.

 

(g)No Other Securities. Investor represents that the convertible promissory note comprising the Company Obligations is the only security of the Company owned by the Investor. 

 

7.No Short Sales. Investor, its successors, assigns and affiliates, agrees that so long as the Settlement Shares are not sold, Investor and Investor’s affiliates shall not, directly or indirectly, enter into or effect “short sales” of the common stock of the Company or hedging transaction which establishes a short position with respect to the common stock of the Company. The Company acknowledges and agrees that upon delivery of a conversion notice by Investor, Investor immediately owns the shares of common stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales. 

 

8.Miscellaneous. 

 

(a)Entire Agreement. This Agreement, together with the schedules and exhibits attached hereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written with respect to such matters. 

 

(b)Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (2) personally served, (2) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (3) delivered by reputable air courier service with charges prepaid, or (4) transmitted by hand delivery or e-mail, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. 

 

Any notice or other communication required or permitted to be given hereunder shall be deemed effective (A) upon hand delivery or delivery by e-mail at the address or e-mail address designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (B) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall occur first. Such notice shall be properly delivered to the address set forth beneath the name of such party below:

If to Investor:Firstfire Global Opportunity Fund, LLC 1040 1st Avenue 

New York, New York 10022

Attention: Eli Fireman, Managing Member E-mail: eli@firstfirecap.com


SETTLEMENT AGREEMENT | PAGE 6


If to the Company:Raadr, Inc. 

1680 Michigan Avenue, Suite 700 Miami Beach, Florida 33139

Attention: Daniel Gilcher, Chief Financial Officer E-mail: dgilcher@mexedia.com

 

(c)Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and Investor, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

 

(d)Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

 

(e)Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. 

 

(f)No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

 

(g)Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflict of laws thereof. Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the City of New York, New York (the “New York Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the New York Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such New York Courts, or such New York Courts are improper or inconvenient venue for such proceeding. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement 


SETTLEMENT AGREEMENT | PAGE 7


or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

(h)Survival. The representations and warranties contained herein shall survive the Closing for the applicable statute of limitations. 

 

(i)Execution. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

 

(j)Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ, an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

 

(k)Construction. The parties hereto agree that each of them and/or their respective counsel have reviewed and have had an opportunity to revise this Agreement and the schedules attached hereto. This Agreement shall be construed according to its fair meaning and not strictly for or against any party. The word “including” shall be construed to include the words “without limitation.” In this Agreement, unless the context otherwise requires, references to the singular shall include the plural and vice versa. 

 

[ SIGNATURE PAGE FOLLOWS ]


SETTLEMENT AGREEMENT | PAGE 8


[ SIGNATURE PAGE TO EXCHANGE AGREEMENT ]

 

 

 

IN WITNESS WHEREOF, the Parties have caused this Exchange Agreement to be duly executed and delivered as of the date and year first written above.

 

COMPANY:INVESTOR: 

 

RAADR, INC.FIRSTFIRE GLOBAL OPPORTUNITY FUND, LLC 

 

 

By: /s/ Daniel ContrerasBy: /s/ Eli Fireman 

Daniel ContrerasEli Fireman 

Chief Executive OfficerManaging Member 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SETTLEMENT AGREEMENT | PAGE 9



EXHIBIT A

 

Description of the Company Obligations

 

 

1.Note dated October 1, 2024. 

 

Current Balance: $25,000.00


GLOBAL SETTLEMENT & EXCHANGE OF SENIOR SECURED CONVERTIBLE PROMISSORY NOTE

THIS GLOBAL SETTLEMENT & EXCHANGE SENIOR OF SECURED CONVERTIBLE

PROMISSORY NOTE AND WARRANT (the “Global Exchange”) is entered into as of November 6, 2024 (the “Effective Date”), by and between Raadr, Inc., a corporation organized under the laws of the state of Nevada (the “Borrower”) and Leonite Fund I, LP, a limited partnership organized under the laws of the State of Delaware (the “Investor”).

WHEREAS, the Borrower and the Investor entered into a SENIOR SECURED CONVERTIBLE PROMISSORY NOTE dated August 3, 2021, as amended by amendments dated May 3, 2024 and October 1, 2024 (collectively, the “Note” and the aforementioned amendments referred to herein as the “First Amendment” and “Second Amendment” respectively), issued pursuant to the terms of that certain SECURITIES PURCHASE AGREEMENT of even date therewith (the “SPA”), and secured pursuant to that certain SECURITY AND PLEDGE AGREEMENT of even date therewith (the “Security Agreement” and collectively with the Note and the SPA, the “Loan Documents”);

WHEREAS, prior to the execution of this Global Exchange, the current amount due and outstanding under the Note is $176,055.

WHEREAS, pursuant to the terms of the SPA, the Borrower issued a common share purchase warrant for the exercise of 50,000,000 of the Borrower’s common shares (the “Common Shares”) in connection with the issuance of the Note (the “Warrant” and collectively with the Loan Documents, the “Exchanged Securities”).

WHEREAS, the certain disputes have arisen with respect to the Borrower’s obligations under Loan Documents (the “Disputes”).

WHEREAS, the Borrower and the Investor desire to exchange the Exchanged Securities for shares of the Borrower’s common stock as set forth herein, and to settle the matter with respect to the Disputes;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Investor and the Borrower hereby agree as follows:

1.The representations, covenants, and recitations set forth in the foregoing recitals are hereby incorporated into and made a part of this Global Exchange, including all defined terms referenced therein. 

2.Except as specifically modified by this Global Exchange, the terms and conditions of the Loan Documents, shall remain in full force and effect. In the event of any inconsistency between the terms of this Global Exchange and the terms of the Loan Documents, the terms of this Global Exchange shall control. All capitalized terms used herein shall have the meaning ascribed to them in the Note or the other Loan Documents, unless defined otherwise herein. 


1


3.The terms of the Global Exchange are as follows: 

(a)The Exchanged Securities shall be exchanged for 750,000,000 Common Shares (the “Settlement Shares”). 

(b)The Company shall issue the Settlement Shares to the Investor as follows: 

(i)375,000,000 of the Settlement Shares shall be issued immediately upon execution of this Global Settlement (the “Down Payment Shares”). 

(ii)The remaining 375,000,000 (the “Remaining Shares”) shall be issued at the sole discretion of the Investor, provided however, that unless explicitly waived in writing by the Investor upon 30 days notice to the Borrower, in no event shall the Investor be entitled under this Global Settlement to receive a number of Common Shares beneficially owned by the Investor and its affiliates that would result in beneficial ownership by the Investor and its affiliates of more than 9.99% of the outstanding Common Shares. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause 

(1) of such proviso.

(c)The Borrower shall fully execute an issuance resolution with respect to Remaining Shares, with the date left blank, and deliver such issuance resolution to the Investor as Exhibit A attached hereto (the “Issuance Resolution”). The Borrower hereby agrees and acknowledges, that upon the election of the Investor to demand the Remaining Shares, it shall be permitted to complete the date on the Issuance Resolution and submit it to the Borrower’s transfer agent (the “Transfer Agent”). Additionally, concurrently with the execution hereof, Borrower shall inform the Transfer Agent that it is permitted to accept the Issuance Resolution to be submitted by the Investor as if it was sent directly from the Borrower, without the need to obtain confirmation from the Borrower that such Issuance Resolution is valid, and shall cause the Transfer Agent to acknowledge this clause concurrently with the execution hereof by the Borrower and the Investor. For avoidance of doubt, the Borrower further agrees that it will not in any way frustrate the issuance of the Remaining Shares, and upon request of the Investor, the Borrower shall be required to confirm to any third party reasonably requested by the Investor, that such issuance resolution is valid. 

(d)The Borrower shall establish a reserve of 375,000,000 Common Shares, to be held for the benefit of the Investor at the Transfer Agent, immediately upon the execution of this Global Exchange, and shall cause the Transfer Agent to acknowledge the establishment of such reserve and confirm such directly to the Investor. 

(e)Upon the Borrower fulfilling all its obligations hereinunder, the Note shall be deemed paid in full and the Investor shall surrender the Note and the other Loan 


2


Documents and the Warrant to the Borrower. For purposes of Rule 144, each of the Borrower’s common shares issued to the Investor pursuant to the terms herein shall be deemed to be held by the Investor beginning on the date that the Investor first acquired the Exchanged Securities. For avoidance of doubt, shares issued with hereunder, shall be deemed to have been held by the Investor since August 4, 2021, the date that the Investor advanced funds to the Borrower pursuant to the Loan Documents. Borrower acknowledges that the surrender of the Exchanged Securities by the Investor to the Borrower is the sole consideration provided by the Investor to the Borrower for all shares issued hereunder. The Borrower agrees not to take any position that is contrary to the positions described herein.

(f)Notwithstanding anything to the contrary herein, the terms of the leak out provision pursuant to the Second Amendment (the “Leak Out Provision”) shall survive so long as the Investor shall hold any of the shares issued pursuant to this Global Exchange. 

4.Conditions Precedent. Unless explicitly waived in writing by the Investor, the obligations of the Borrower under Section 3(b)(i), 3(c), and 3(d) shall be conditions precedent to the obligations of the Investor hereunder, including the Leak Out Provision, and in the event that any of the aforementioned conditions fail to be satisfied, the terms of this Global Exchange shall be deemed void ab initio

5.In the event that the Borrower fails to fulfill its obligations under section 3(b)(ii), or breaches any other terms of this Global Settlement, the exchange of the Exchange Securities shall be deemed to have been rescinded with respect to a portion of the balance due under the Loan Documents equal to the greater of (1) actual harm of the Investor caused by such breach, or (2) the value of any undelivered Settlement Shares based on the market value on the Effective Date, and the Loan Document shall be deemed to be in full force and effect with respect to such rescinded amount. 

6.The Investor represents that the Exchanged Securities are the only securities of the Borrower owned by the Investor. 

7.Borrower, on behalf of themselves and their heirs, executors, administrators, agents, members, managers, directors, shareholders, officers, successors and assigns, including former managers, directors, and officers (all of the foregoing, collectively, the “Borrower Releasors”), hereby release and forever discharge the Investor (individually and together), its agents, attorneys, successors and assigns (all of the foregoing, collectively, the “Investor Releasees”) from all liabilities, charges, claims, Agreements, causes of action, or suits, of whatever kind or nature, whether accrued, absolute, contingent, liquidated or unliquidated, known or unknown, which the Borrower Releasors ever had, now have, or hereafter can, shall, or may have against the Investor Releasees for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world to the date of this Amendment arising from, or relating to, the Consolidated Note or the other Loan Documents. 

8.Upon the fulfillment of all of the Borrower’s obligations hereunder, the following release 


3


shall be deemed to be effective: Investor, on behalf of themselves and their heirs, executors, administrators, agents, members, managers, directors, shareholders, officers, successors and assigns (all of the foregoing, collectively, the “Investor Releasors”), hereby release and forever discharge the Borrower (individually and together), its agents, attorneys, successors and assigns (all of the foregoing, collectively, the “Borrower Releasees”) from all liabilities, charges, claims, Agreements, causes of action, or suits, of whatever kind or nature, whether accrued, absolute, contingent, liquidated or unliquidated, known or unknown, which the Investor Releasors ever had, now have, or hereafter can, shall, or may have against the Borrower Releasees for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world to the date of this Amendment arising from, or relating to, the Consolidated Note or the other Loan Documents.

9.This Global Exchange may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

10.This Global Exchange shall be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Global Exchange shall be brought only in the state and/or federal courts located in Delaware. The parties to this Global Exchange hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE 

OR ANY TRANSACTIONS CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorney's fees and costs. In the event that any provision of this Global Exchange or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Global Exchange or any other related documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under the Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

[Signature page follows]


4


IN WITNESS WHEREOF the parties have signed this SETTLEMENT & EXCHANGE OF SENIOR SECURED CONVERTIBLE PROMISSORY NOTE AND WARRANT in one or

more counterparts as of the date first hereinabove set forth.

 

The Borrower Raadr, Inc.

By: /s/ Daniel Contreras

Name: Daniel Contreras Title: Chief Executive Officer

 

The Investor Leonite Fund I, LP

By its Manager, Leonite Advisors LLC

 

By: /s/ Avi Geller

Name: Avi Geller Title: Manager

 

 

Jacob DiMartino

 

/s/ Jacob DiMartino

 

 

Acknowledged and Agreed to with respect to Section 3(c) and 3(d):

MANHATTAN TRANSFER REGISTRAR CO.

 

By: /s/ Arta Nezaj

Name: Arta Nezaj

Title: Vice President

 

 

 


5


EXHIBIT A – ISSUANCE RESOLUTION

(see attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 



RAADR, INC.

1680 Michigan Avenue, Suite 700 Miami Beach, Florida 33139

 

TREASURY ORDER ISSUANCE RESOLUTION

Corporate Resolution for the Issuance of New Shares of Common Stock

RESOLVED, that Manhattan Transfer Registrar Co., sole stock transfer agent for the above class of stock for the above Company, is authorized by the Company to issue common shares described below and increase the outstanding common shares on the books of the Company in the amount of 375,000,000 shares.

 

ISSUANCE INSTRUCTIONS:

 

 

 

Legal Name

 

Street Address, City, State, Zip

 

Tax ID/SSN

 

 

Cost Basis

 

No. of Shares

 

Restricted or Free-Trading

Leonite Fund I, LP avi@leonitecap.com jake@leonitecap.com

1 Hillcrest Center Drive Suite 232

Spring Valley, NY 10977

To be provided

$.0002/share

375,000,000

Free-trading

 

 

Reason for issuance (check one): Conversion/Exercise □ or New Issuance ■ If shares are to be issued free-trading (check one):

Issued pursuant to an Effective Registration Statement □ Effective Date __________________

or

Exempt from Registration ■ (Attach legal opinion)

 

DELIVERY INSTRUCTIONS:

First Class Mail: □

 

FedEx: □ UPS: □ DHL: □ Account number (required for overnight shipping): __________________

 

Delivery address if different than shareholder addresses listed above: BOOK ENTRY

 

I, the undersigned, do hereby certify that this is a true copy of a Resolution set forth and adopted on the date listed below, and that the said Resolution has not in any way been rescinded, annulled or revoked, but the same is still in full force and effect.

 

Dated: _________________, 2024.

 

 

 

Daniel Cantreras

Chief Executive Officer


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT

 

The Global Settlement and Exchange Agreement (the “Global Exchange”) is entered into as of November 12, 2024 (the “Effective Date”) by and between Raadr, Inc., a Nevada corporation (the “Borrower”), and IBH Capital, LLC, a Delaware limited liability company (the “Investor”).

WHEREAS, the Investor is the holder of the three separate convertible promissory notes described in Exhibit A attached hereto and made a part hereof (the “Notes”);

WHEREAS, prior to the execution of this Global Exchange, the current amount due and outstanding under the Notes is $506,982.55.

WHEREAS, the certain disputes have arisen with respect to the Borrower’s obligations under the Notes (the “Disputes”).

WHEREAS, the Borrower and the Investor desire to exchange the Notes for shares of the Borrower’s common stock as set forth herein, and to settle the matter with respect to the Disputes;

NOW, THEREFORE, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Investor and the Borrower hereby agree as follows:

1.The representations, covenants, and recitations set forth in the foregoing recitals are hereby incorporated into and made a part of this Global Exchange, including all defined terms referenced therein. 

2.Except as specifically modified by this Global Exchange, the terms and conditions of the Notes shall remain in full force and effect. In the event of any inconsistency between the terms of this Global Exchange and the terms of the Notes, the terms of this Global Exchange shall control. All capitalized terms used herein shall have the meaning ascribed to them in the Notes, unless defined otherwise herein. 

3.The terms of the Global Exchange are as follows: 

(a)The Notes shall be exchanged for 750,000,000 shares of the Borrower’s common stock (the “Settlement Shares”). 

(b)The Company shall issue the Settlement Shares to the Investor as follows: 

(i)375,000,000 of the Settlement Shares shall be issued immediately upon execution of this Global Settlement (the Down Payment Shares). 

(ii)The remaining 375,000,000 (the Remaining Shares) shall be issued at the sole discretion of the Investor, provided however, that unless explicitly waived in writing by the Investor upon 30-days’ notice to the Borrower, in no event shall the Investor be entitled under this Global Settlement to receive a number of shares of Borrower’s common stock beneficially owned by the Investor and its 


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT |  PAGE 1


affiliates that would result in beneficial ownership by the Investor and its affiliates of more than 9.99% of the outstanding shares of Borrower’s common stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the Exchange Act), and Regulations 13D- G thereunder, except as otherwise provided in clause (1) of such proviso.

(c)The Borrower shall fully execute an issuance resolution with respect to Remaining Shares, with the date left blank, and deliver such issuance resolution to the Investor as Exhibit B attached hereto (the Issuance Resolution). The Borrower hereby agrees and acknowledges, that upon the election of the Investor to demand the Remaining Shares, it shall be permitted to complete the date on the Issuance Resolution and submit it to the Borrower’s transfer agent (the Transfer Agent). Additionally, concurrently with the execution hereof, Borrower shall inform the Transfer Agent that it is permitted to accept the Issuance Resolution to be submitted by the Investor as if it was sent directly from the Borrower, without the need to obtain confirmation from the Borrower that such Issuance Resolution is valid, and shall cause the Transfer Agent to acknowledge this clause concurrently with the execution hereof by the Borrower and the Investor. For avoidance of doubt, the Borrower further agrees that it will not in any way frustrate the issuance of the Remaining Shares, and upon request of the Investor, the Borrower shall be required to confirm to any third party reasonably requested by the Investor, that such issuance resolution is valid. 

(d)The Borrower shall establish a reserve of 375,000,000 shares of common stock, to be held for the benefit of the Investor at the Transfer Agent, immediately upon the execution of this Global Exchange, and shall cause the Transfer Agent to acknowledge the establishment of such reserve and confirm such directly to the Investor. 

(e)Upon the Borrower fulfilling all its obligations hereinunder, the Notes shall be deemed paid in full and the Investor shall surrender the Notes to the Borrower. For purposes of Rule 144, each share of the Borrower’s common stock issued to the Investor pursuant to the terms herein shall be deemed to be held by the Investor beginning on the date that the Investor first acquired the Notes. For avoidance of doubt, shares issued with hereunder, shall be deemed to have been held by the Investor since at least April 14, 2016, the date that the Investor last advanced funds to the Borrower. The Borrower acknowledges that the surrender of the Notes by the Investor to the Borrower is the sole consideration provided by the Investor to the Borrower for all shares of common stock issued hereunder. The Borrower agrees not to take any position that is contrary to the positions described herein. 

(f)Leak-Out. Beginning on the Effective Date and continuing until May 2, 2025 (the “Leak-Out Period”), the Investor agrees that during the Leak-Out Period the aggregate number of Down Payment Shares and/or Remaining Shares that the Investor shall have the right, but not the obligation, to sell into the public markets (each such transaction, a “Disposition”), on a per-calendar-week basis, shall not 


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT |  PAGE 2


exceed the greater of (i) 20,000,000 or (ii) ten percent (10%) of the number of shares of the Borrower common stock that were traded in the public markets during the immediately preceding calendar week (the “Weekly Leak-Out Amount”), as reported by OTC Markets Group, Inc. or any successor entity or by a national securities exchange in the event that, at such time, the Borrower’s common stock is listed thereof (any such entity of exchange, the “OTCM Successor”).

(g)Cumulative Disposition. If, during any calendar week within the Leak-Out Period, the cumulative amount of Conversion Shares sold by the Investor during the Leak- Out Period then-to-date is less than the cumulative Weekly Leak-Out Amount during the Leak-Out Period then-to-date, then the Investor shall have the right, but not the obligation, to engage in one or more additional Disposition transactions, such that, at the conclusion of such additional Disposition transaction(s), the Investor will have engaged in Disposition transactions in an amount that does not exceed the cumulative Weekly Leak-Out Amount during the Leak-Out Period then- to-date. 

(h)OTCM Website. For purposes of determining the monthly trading volume of the shares of the Borrower’s common stock, such volume information shall be derived from data published on the website of OTCM or the website of a relevant OTCM Successor. 

(i)Transferee Restrictions. Any transferee of any of the Down Payment Shares and/or Remaining Shares, other than as permitted in connection with a waiver (as referenced below) or as otherwise permitted pursuant to the terms hereof, shall be subject to all of the terms and conditions of this Global Exchange and, solely for such purposes, any such transferee shall be included in the definition of the Investor. 

(j)Borrower Waiver. Notwithstanding anything to the contrary contained herein, the Borrower may, in its sole discretion and in good faith, at any time and from time to time, waive any of the conditions or restrictions in its favor contained in this Global Exchange. 

4.Conditions Precedent. Unless explicitly waived in writing by the Investor, the obligations of the Borrower under Section 3(b)(i), 3(c), and 3(d) shall be conditions precedent to the obligations of the Investor hereunder, including the Leak Out Provision, and in the event that any of the aforementioned conditions fail to be satisfied, the terms of this Global Exchange shall be deemed void ab initio

5.In the event that the Borrower fails to fulfill its obligations under section 3(b)(ii), or breaches any other terms of this Global Settlement, the exchange of the Exchange Securities shall be deemed to have been rescinded with respect to a portion of the balance due under the Loan Documents equal to the greater of (1) actual harm of the Investor caused by such breach, or (2) the value of any undelivered Settlement Shares based on the market value on the Effective Date, and the Loan Document shall be deemed to be in full force and effect with respect to such rescinded amount. 


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT |  PAGE 3


6.The Investor represents that the Exchanged Securities are the only securities of the Borrower owned by the Investor. 

7.Borrower, on behalf of themselves and their heirs, executors, administrators, agents, members, managers, directors, shareholders, officers, successors and assigns, including former managers, directors, and officers (all of the foregoing, collectively, the “Borrower Releasors”), hereby release and forever discharge the Investor (individually and together), its agents, attorneys, successors and assigns (all of the foregoing, collectively, the “Investor Releasees”) from all liabilities, charges, claims, Agreements, causes of action, or suits, of whatever kind or nature, whether accrued, absolute, contingent, liquidated or unliquidated, known or unknown, which the Borrower Releasors ever had, now have, or hereafter can, shall, or may have against the Investor Releasees for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world to the date of this Amendment arising from, or relating to, the Consolidated Note or the other Loan Documents. 

8.Upon the fulfillment of all of the Borrower’s obligations hereunder, the following release shall be deemed to be effective: Investor, on behalf of themselves and their heirs, executors, administrators, agents, members, managers, directors, shareholders, officers, successors and assigns (all of the foregoing, collectively, the “Investor Releasors”), hereby release and forever discharge the Borrower (individually and together), its agents, attorneys, successors and assigns (all of the foregoing, collectively, the “Borrower Releasees”) from all liabilities, charges, claims, Agreements, causes of action, or suits, of whatever kind or nature, whether accrued, absolute, contingent, liquidated or unliquidated, known or unknown, which the Investor Releasors ever had, now have, or hereafter can, shall, or may have against the Borrower Releasees for, upon, or by reason of any matter, cause, or thing whatsoever from the beginning of the world to the date of this Amendment arising from, or relating to, the Consolidated Note or the other Loan Documents. 

9.This Global Exchange may be executed in any number of counterparts and each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts shall together constitute but one and the same instrument. 

10.This Global Exchange shall be governed by and construed in accordance with the laws of the State of Delaware without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Global Exchange shall be brought only in the state and/or federal courts located in Delaware. The parties to this Global Exchange hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. THE BORROWER HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS NOTE 

OR ANY TRANSACTIONS CONTEMPLATED HEREBY. The prevailing party shall be entitled to recover from the other party its reasonable attorneys’ fees and costs. In the event that any provision of this Global Exchange or any other agreement delivered in


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT |  PAGE 4


connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Global Exchange or any other related documents by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under the Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law.

[Signature page follows]

 

 

 

 

 

 

 

 

 

 


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT |  PAGE 5


IN WITNESS WHEREOF the parties have signed this Global Settlement and Exchange Agreement in one or more counterparts as of the date first hereinabove set forth.

BORROWER RAADR, INC.

By: /s/ Daniel Contreras

Name: Daniel Contreras

Title: Chief Executive Officer

 

INVESTOR:

 

IBH CAPITAL, LLC

 

 

By: /s/ Pinny Kievman

Name: Pinny Kievman

Title: Managing Member

 

Acknowledged and Agreed to with respect to Section 3(c) and 3(d):

MANHATTAN TRANSFER REGISTRAR CO.

 

 

By: /s/ Arta Nezaj

Name: Arta Nezaj

Title: Vice President

 

 

 

 

 

 

 

 

 

 


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT |  PAGE 6


EXHIBIT A

Information With Respect to the Notes Held by the Investor

Note 1

Replacement Convertible Promissory Note issued in replacement of convertible promissory note dated October 13, 2013, in favor of Grace Turpin; current balance due: $140,874.42 (copy attached)

Note 2

Replacement Convertible Promissory Note issued in replacement of convertible promissory note dated October 24, 2013, in favor of Darlene Griego; current balance due: $270,624.62 (copy attached)

 

Note 3

Convertible Promissory Note dated April 14, 2016, $30,000 initial principal amount; current balance due: $95,483.51 (copy attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 


GLOBAL SETTLEMENT AND EXCHANGE AGREEMENT |  PAGE 7



EXHIBIT B ISSUANCE RESOLUTION

(see attached)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




RAADR, INC.

1680 Michigan Avenue, Suite 700 Miami Beach, Florida 33139

TREASURY ORDER ISSUANCE RESOLUTION

Corporate Resolution for the Issuance of New Shares of Common Stock

 

RESOLVED, that Manhattan Transfer Registrar Co., sole stock transfer agent for the above class of stock for the above Company, is authorized by the Company to issue common shares described below and increase the outstanding common shares on the books of the Company in the amount of 375,000,000 shares.

ISSUANCE INSTRUCTIONS:

 

 

 

Legal Name

 

Street Address, City, State, Zip

 

Tax ID/SSN

 

 

Cost Basis

 

No. of Shares

 

Restricted or Free-Trading

IBH Capital, LLC

pinny@ibhcap.com

383 Kingston Avenue

Brooklyn, NY 11213

To be provided

$.0006/share

375,000,000

Free-trading

 

Reason for issuance (check one):Conversion/Exercise □ or New Issuance ■ If shares are to be issued free-trading (check one): 

Issued pursuant to an Effective Registration Statement □ Effective Date ____________

or

Exempt from Registration □ (Attach legal opinion)

 

DELIVERY INSTRUCTIONS:

First Class Mail: □

 

FedEx: □ UPS: □ DHL: □ Account number (required for overnight shipping): _____________

 

Delivery address if different than shareholder addresses listed above: BOOK ENTRY

 

I, the undersigned, do hereby certify that this is a true copy of a Resolution set forth and adopted on the date listed below, and that the said Resolution has not in any way been rescinded, annulled or revoked, but the same is still in full force and effect.

 

Dated: _______________, 2024.

 

 

 

Daniel Cantreras

Chief Executive Officer

 


SETTLEMENT AGREEMENT

This Settlement Agreement (hereinafter the “Agreement”) is made and entered into this 7th day of October, 2024, by and between Raadr, Inc., a Nevada corporation (hereinafter the “Company”), and GW Holdings Group, LLC (hereinafter “GW Holdings”) (collectively, the Company and GW Holdings are referred to as the “Parties”).

 

RECITALS

 

WHEREAS, the Company entered into a loan transaction with GW Holdings, pursuant to which the Company issued an 12% Convertible Promissory Note to GW Holdings (the “GW Holdings Note”, a copy of which is attached hereto as Exhibit A), in consideration of a loan in the amount of $52,500, with a current amount due under the GW Holdings Note of $150,780.37 (the “Note Balance Amount”); and

 

WHEREAS, various disputes have arisen between the Parties which they desire to settle between them according to the following terms and conditions.

 

NOW, THEREFORE, in consideration of the mutual covenants and promises set forth herein and in consideration of the sum of ten dollars in hand paid, the receipt and sufficiency of which is hereby acknowledged, the Parties agree as follows:

 

1.Cancellation of Notes. Effective upon receipt of the first payment required by Section 2, GW Holdings hereby cancels all principal and accrued interest owed by the Company under the GW Holdings Note, as of the date of this Agreement. 

 

2.1Share Issuance to GW Holdings. In consideration of GW Holdings’ cancelling the GW Holdings Note, the Company shall issue to GW Holdings 223,000,000 shares of the Company’s common stock (the “Settlement Shares”) and shall deliver a book entry statement reflecting such issuance of the Settlement Shares in the name of GW Holdings, in full extinguishment of the Note Balance Amount. 

 

2.2Investment Purpose. As of the date of this Agreement, GW Holdings is acquiring the Settlement Shares for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act of 1933, as amended (the “1933 Act”); provided, however, that, by making the representations herein, GW Holdings does not agree to hold any of the Settlement Shares for any minimum or other specific term and reserves the right to dispose of the Settlement Shares at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. 

 

2.3Reliance on Exemptions. GW Holdings understands that the Settlement Shares are being offered and sold to it in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying upon the truth and accuracy of, and GW Holdings’ compliance with, the representations, warranties, agreements, acknowledgments and understandings of GW Holdings set forth herein in order to determine the availability of such exemptions and the eligibility of GW Holdings to acquire the Settlement Shares. 

 

2.4Legends. GW Holdings understands that until such time as the Settlement Shares have been registered under the 1933 Act or may be sold pursuant to Rule 144, Rule 144A under the 1933 Act, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Settlement Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such Settlement Shares): 


SETTLEMENT AGREEMENT | 1



“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

3.Mutual General Release and Covenant Not to Sue. Except with respect to the obligations under and terms of this Agreement, and subject to the full and complete performance of all such obligations, the Company on the one hand, and GW Holdings, on the other, do hereby agree to fully, finally and forever mutually release and forever discharge and covenant not to sue each other, and each other’s respective parent companies, subsidiaries, affiliates, divisions, attorneys, insurers, officers, directors, principals, agents shareholders, members, employees, predecessors, successors, assigns, personal representatives, partners, heirs and executors from any and all debts, fees, attorneys’ fees, liens, costs, expenses, damages, sums of money, accounts, bonds, bills, covenants, promises, judgments, charges, demands, claims, causes of action, suits, liabilities, obligations or contracts of any kind whatsoever, whether in law or in equity, whether asserted or unasserted, whether known or unknown, fixed or contingent, under statute or otherwise, arising from or related to the acts and omissions forming the basis of this Dispute. 

 

4.Non-Disparagement Agreement. Each of the Parties hereby agrees not to disparage any of the other Parties, their respective officers, directors, employees, stockholders, agents and affiliates, in any manner likely to be harmful to them or their business, business reputation or personal reputation. 

 

5.Confidentiality. Except as otherwise provided for herein, the Parties agree that this Agreement, and the terms of the settlement by and between the Parties shall be deemed to be confidential, and the Parties agree not to disclose, divulge, or communicate any of the terms or conditions of this Agreement to any person who is not a Party to this Agreement. Notwithstanding the foregoing provision, the Parties may disclose information relating to the terms and conditions of this Agreement free from any restriction or obligation to keep such information confidential, if: (a) such information is being disclosed by the Parties to their respective legal counsel and accountants, and the disclosing party instructs such counsel or accountants to keep such disclosure confidential; (b) such information is required to be disclosed by any law or order of an arbitration panel or court; 

(c) such information is needed, in the opinion of legal counsel for any of the Parties, to be disclosed in connection with any legal action taken to enforce the provisions of this Agreement; (d) all of the Parties consent, in writing, to disclosure of such information; or (e) such information is disclosed in response to any inquiry about this settlement or its underlying facts and circumstances by the Securities and Exchange Commission, FINRA, any other self-regulatory organization, or any other federal or state regulatory authority. The Parties, and their respective counsel, are authorized to make the following statement in response to any inquiry from any third party concerning this Agreement, or the terms of the settlement by and between the Parties: “The Parties resolved the matter pursuant to a Confidential Agreement.” In the event that any Party is requested or required (by law or regulation, interrogatories, request for information or documents, subpoena, civil investigative demand or similar process) to disclose any of the confidential information described above, the Party who is subject to such request or requirement shall use every reasonable effort to legally prevent such information from being disclosed to the public or any third party not a party to this Agreement, and shall provide prompt written notice of such request or requirement to all of the other Parties and their respective legal counsel prior to complying therewith so that an appropriate protective order, if appropriate, can be sought, and/or waiver can be obtained by the other Parties. If, in the absence of a protective order or the receipt of a waiver/consent hereunder, the Party subject to such request or requirement is nonetheless legally compelled to disclose such information, the Party may disclose such


SETTLEMENT AGREEMENT | 2



information without any liability hereunder. If, in the absence of a protective order or the receipt of a waiver/consent hereunder, the signatory subject to such request or requirement is nonetheless legally compelled to disclose such information, the signatory may disclose such information without any liability hereunder. Any non- disclosure provision in this Settlement Agreement does not prohibit or restrict any party hereto (or attorney) from responding to any inquiry, or providing testimony, about this settlement or its underlying facts and circumstances by, or before, the Securities and Exchange Commission, FINRA, any other self-regulatory organization, or any other federal or state regulatory authority.

 

Notwithstanding any provision in the foregoing paragraph to the contrary, GW Holdings specifically agrees and consents to (a) the Company’s disclosure of the material terms of this Agreement in any filing made with the SEC and/or OTC Markets and (2) the Company’s filing a true and correct copy of this Agreement as an exhibit to any Offering Statement on Form 1–A filed with the SEC.

 

6.Choice of Law and Venue. This Agreement and all transactions contemplated by this Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York. Any litigation brought or held on the basis of this Agreement shall be brought and held in New York, New York. 

 

7.Merger and Integration Clause. This Agreement and any and all exhibits, constitutes the entire agreement between the Parties hereto and supersedes all prior or contemporaneous oral and written discussions, negotiations, agreements, commitments, understandings, and representations, if any, made by and between the Parties which are deemed merged herein, and this Agreement may not be amended, changed or modified except by a writing signed by the Parties made with specific reference to this Agreement. The Parties expressly disclaim any reliance on any oral or written representation by any person, and rely solely and exclusively upon only those representations set forth in this Agreement. 

 

8.Severability. If any term, provision, covenant or condition of this Agreement, or the application thereof, in whole or in part, is rendered invalid, void or unenforceable, the remainder of this Agreement or the application of such term or provision to persons or circumstances other than those to which it is held invalid, void or unenforceable shall not be affected thereby, and each term and provision of this Agreement shall be valid and enforceable to the fullest extent permitted by law. 

 

9.Waiver. The waiver by any party to this Agreement of the violation or breach of any provision hereof by any other party shall not constitute a waiver of any prior or subsequent violation or breach of any provision of this Agreement. 

 

10.Authority and Non-Transfer of Rights. The undersigned parties warrant and represent that they are duly authorized to execute this Agreement, have the full authority to bind the Party that they purport to bind by their signature, and that the Parties have been represented by counsel of their choice. The Parties, and each of them, hereby warrant and represent that they have not transferred or otherwise assigned to any non-party any of the claims released under this Agreement, and that no other person has any right, lien, claim against or interest in the same. 

 

11.Binding Effect. All of the terms and provisions of this Agreement are binding upon, and inure to the benefit of, and are enforceable by, the Parties, and their respective legal representatives, successors, and permitted assigns. 

 

12.Counterparts. This Agreement may be signed in counterparts, each of which when executed shall be deemed an original, and all of which together shall constitute a single instrument binding upon the Parties hereto. This Agreement and any counterpart may be executed by signatures provided via facsimile transmission 


SETTLEMENT AGREEMENT | 3



and/or via electronic mail in a “pdf” file, which facsimile and/or electronic mail “pdf” signatures shall be as binding and effective as original signatures.

 

13.Construction. This Agreement shall be construed as if the Parties collectively prepared it and any uncertainty and ambiguity shall not be interpreted against any Party as the drafter. 

 

14.Voluntary Assent. The Parties to this Agreement have been represented and fully advised by legal counsel and, in executing this Agreement, no party has relied upon any representations, warranties, promises, or inducements made by any other party, including, without limitation any representations, warranties, promises, or inducements made during the course of negotiating this Agreement, with the sole exception of the promises set forth in this Agreement. Each party has made an independent investigation and inquiry into such factual matters as that Party deemed relevant in connection with this Agreement and has consulted with counsel as to the nature and effect of the provisions of this Agreement. Each party acknowledges and agrees that this Agreement has been carefully read, freely and voluntarily assented to, signed as his or her or its own free act, and that each party has consulted with counsel of its choice in connection herewith. The Parties acknowledge that each of them is sophisticated and has read this Agreement and understands the terms, including the legal consequences therefrom, and in offering to make, and in making, executing, and delivering this Agreement, none of them was 

acting under any duress or undue influence.

 

15.Captions. The captions appearing at the commencement of sections of this Agreement are descriptive only and have been used for convenience in reference to this Agreement and shall not define, limit, or describe the scope or intent of this Agreement, nor in any way affect this Agreement. 

 

16.Costs and Attorney’s Fees. If any dispute arises between the Parties over this Agreement, the prevailing party in any action or other proceeding brought to resolve said dispute shall be entitled to recover from the losing party its reasonable costs and attorney’s fees arising therefrom, including costs and attorney’s fees incident to any appeals. 

 

17.Notices. Any notice required or permitted to be given under this Agreement shall be sufficient if in writing, and if delivered by electronic mail and overnight delivery or hand delivery to the following: 

If to GW Holdings:GW Holdings Group, LLC Attention: Noah Weinstein 

137 Montague Street, Suite 291 Brooklyn, New York 11201

 

If to the Company:Raadr, Inc. 

Attn: Chief Executive Officer 7950 E. Redfield Road, Unit 210

Scottsdale, Arizona 85260

 

18.Time is of the Essence. Time is of the essence with respect to the performance of the terms of this Agreement and it is the intention of the Parties that this Agreement will become effective after full, complete and perfect performance by each and all of the Parties of all deliveries required by the Agreement. 

 

[ SIGNATURE PAGE FOLLOWS ]


SETTLEMENT AGREEMENT | 4



[ Signature Page to Settlement Agreement ]

 

 

IN WITNESS WHEREOF, the Parties have entered into and executed this Agreement as of the date first referenced above.

 

COMPANY:GW HOLDINGS: 

 

RAADR, INC.GW HOLDINGS GROUP, LLC 

 

 

 

By: /s/ Jacob DiMartinoBy: /s/ Noah Weinstein 

Jacob DiMartinoNoah Weinstein 

Chief Executive OfficerManaging Member 


SETTLEMENT AGREEMENT | 5



EXHBIT A

 

Copy of GW Holdings Note

 

Raadr,Inc.

12% CONVERTIBLE PROMISSORY NOTE

 

Effective Date: January 7. 2021

Principal Amount: US $63.000.00

Maturity Date: January 7, 2022

 

 

THIS NOTE AND THE COMMON STOCK ISSUABLE UPON CONVERSION OF THIS NOTE HAVE NOT BEEN AND WILL NOT BE REGISTERED WITH THE UNITED STATES SECURITIES AND EXCH..NGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE PURSUANT TO AN EXEMPTION FROM REGISTRATION PROVIDED UNDERTBE SECURITJESACT OF 1933. AS AMENDED, AND THE RULES AND REGULATIONS PROMULGATED THEREUNDER (THE "1933 ACT")

 

FOR VALUE RECEIVED Raadr, Inc. (the “Company”) promises to pay to the order of GW Holdings Group, LLC. and its authorized successors and permitted assigns “Holder"), the aggregate principal face amount of Ninety-Eight Thousand One Hundred Seventy-Five Dollars exactly (U.S- $63,000.00) on January 7, 2021 ("Maturity Date''). The Company will pay interest on the principal amount outstanding at the rate of 12% per annum" which will commence on January 7,2020. The Company acknowledges tb3t this Note was issued with a $10,500.00 original issue discount (“OID”) such that the purchase price is $52.500.00 minus legal fees as contained in the disbursement memo. The interest will be paid to the Holder in whose name this Note is registered on the records of the Company regarding registration and transfers of this Note. The principal of and interest on. this Note are payable at 137 Montague Street. Suite 291. Brooklyn, NY 11201, initially. and if changed, last appearing on the records of the Company-as designated in writing by the Holder hereof from time to time.. The Company will pay each interest payment: and the outstanding principal due upon this Note before or on the Maturity Date, less any amounts required by law to be deducted or wifhhe1d.. to the Holder of this Note by check or wire transfer addressed to such Holder at the last address appearing on the records of the Company~ The forwarding of such. check or wire transfer shall constitute a payment of outstanding principal hereunder and shall satisfy and discharge 1he liability for principal on this Note to the extent of the sum represented by such check or wire transfer. Interest shall be payable in Common Stock (as defined below) pursuant to paragraph 4(b) herein.

 

This Note is subject to the following additional provisions:

 

L This Note is exchangeable for an equal aggregate principal amount of Notes of different authorized denominations, as requested by the Holder surrendering the same. No service charge will be ID3de for such registration or transfer exchange, except that Holder shall pay any tax or other governmental charges payable in connection therewith.


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Picture 12 


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Picture 17 


SETTLEMENT AGREEMENT | 12



given to the Holder as soon as possible under law.

 

15. This Note shall be governed by and construed in accordance with the laws of New York applicable to contracts made and wholly to be performed within the State of New Yark and shall be binding upon the SOCCes5ms and assigns of each party hereto. The Holder and the Company hereby mutually waive trial by jury and consent to exclusive jurisdiction and venue in the courts of the State of New York This Agreement may be executed in counterparts and the facsimile transmission of an executed counterpart to this Agreement shall be effective as an original

 

[THIS SECTION INTENTIONALLY LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SETTLEMENT AGREEMENT | 13



IN WITNESS WHEREOF. the Company has caused this Note to be duly executed by an officer thereunto duly authorized.

Dated: 01/06/2021

RAADR, INC.

By: /s/ Jacob DiMartino

Title: CEO

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SETTLEMENT AGREEMENT | 14



EXBIBITA

 

NOTICE OF CONVERSION

 

(to be Executed by the Registered Holder in order to Convert the Note)

 

The undersigned hereby irrevocably elects to convert $ ________ of the above Note into ________ Shares of Common Stock of Raadr, Inc. ("Shares” according to the conditions set forth in such Note, as of the date written below.

 

If Shares are to be issued in the name of a person other than the undersigned. the undersigned will pay all transfer and other taxes and charges payable with respect thereto.

 

Date of Conversion: ___________________________________

Applicable Conversion Price: ___________________________

Signature: ___________________________________________

[Print Name of Holder and Title of Signer] 

Address: ____________________________________________

____________________________________________ 

 

SSN or EIN: ______________________

Shares are to be registered in the following name: _________________________

 

Name: __________________________________________________

Address: ____________________________________________

____________________________________________ 

Tel: _________________________________

Fax: _________________________________

SSN or EIN: ______________________

Shares are to be sent or delivered to the following account:

 

Account Name: ______________________________________

Address: ____________________________________________

____________________________________________ 

 

 

 

 

 

 


SETTLEMENT AGREEMENT | 15


LEGAL SERVICES AGREEMENT

 

This Legal Services Agreement (the “Agreement”) dated as of, and to be effective as of, July 15, 2024 (the “Effective Date”), is by and between Newlan Law Firm, PLLC, by and through its Managing Member, Eric Newlan (“Attorney”), and Raadr, Inc., a Nevada corporation (“RDAR”). 

 

RECITALS

 

WHEREAS, as of the date of this Agreement, RDAR owes Attorney pursuant to an invoice dated July 15, 2024, in the amount of $60,000.00 (the “Current Amount Due”), a copy of the invoice relating to the Current Amount Due being attached hereto as Exhibit A; and

 

WHEREAS, currently, RDAR desires for Attorney to continue to serve as its general legal counsel and to be responsible for corporate and securities matters for RDAR, including, without limitation, matters related to a currently proposed acquisition transaction (the “Acquisition Transaction”), a Regulation A offering upon the consummation of the Acquisition Transaction and OTC Markets filings associated with the anticipated change in control of RDAR resulting from the Acquisition Transaction (collectively, the “Corporate and Securities Work”); and

 

WHEREAS, Attorney desires to serve as general legal counsel for RDAR and be responsible for the Corporate and Securities Work, as described in the foregoing Recital; and

 

WHEREAS, Attorney and RDAR desire to enter into an agreement for legal services, on the terms and subject to the conditions set forth herein.

 

NOW, THEREFORE, in consideration of the premises and the mutual covenants, agreements, and considerations herein contained, the parties hereto agree as follows: 

 

1.Corporate and Securities Work. The “Corporate and Securities Work” to be completed by Attorney under this Agreement shall include: 

 

(a)the preparation of all documentation as may be necessary to effect the Acquisition Transaction, on such terms and conditions as the Board of Directors of RDAR shall determine; 

 

(b)the preparation, filing and qualification of an Offering Statement on Form 1-A (including issuance opinions, as requested, and Blue Sky matters) to be filed with the SEC (the “Offering Statement”), but not including any post-qualification amendments thereto; 

 

(c)the review of press releases; 

 

(d)the preparation of all necessary board and shareholder actions and minutes related to the foregoing; and 

 

(e) the review or drafting of various agreements within Attorney’s area of practice through December 31, 2024. 

 

2.Payments to Attorney. In consideration of Attorney’s entering into this Agreement, RDAR shall deliver the following to Attorney: 


LEGAL SERVICES AGREEMENT   |   PAGE 1



(a)For the Current Amount Due. On the Effective Date, a $60,000.00 principal amount promissory note (the “Current Amount Note”), in the form of Exhibit B attached hereto; and 

 

(b)For the Corporate and Securities Work. In consideration of the Corporate and Securities Work to be provided by Attorney at a turn-key cost, on the Effective Date, a $40,000.00 principal amount promissory note (the “Work Note”), in the form of Exhibit C attached hereto (collectively, the Current Amount Note and the Work Note, the “Notes”). 

 

The Company agrees and acknowledges that the Notes are fully earned as of the Effective Date of this Agreement, in consideration of Attorney’s execution of this Agreement and concomitant acceptance of his duties as set forth in this Agreement, the full execution of which will limit Attorney’s ability to engage in other potential client relationships with other parties. The Company hereby agrees to furnish any documentation necessary for Attorney to deposit the shares of common stock of RDAR underlying the Notes (the “Conversion Shares”) with a FINRA registered broker/dealer, once any applicable holding period shall have elapsed. 

 

The Company further agrees and acknowledges that the Notes shall be issued in the name of “NLF Support Services, LLC,” a wholly-owned investment subsidiary of Newlan Law Firm, PLLC. The term “Attorney,” as defined herein, shall include NLF Support Services, LLC, unless the context shall require otherwise. 

 

3.Term of Agreement. This Agreement shall extend from the Effective Date through December 31, 2024 (the “Term”); provided, however, that Attorney shall provide services associated with the Offering Statement that may be required after the expiration of the Term. 

 

4.Representations of RDAR. RDAR represents and warrants to Attorney that: 

 

(a)RDAR will cooperate fully and timely with Attorney to enable Attorney to perform Attorney’s obligations hereunder. 

 

(b)The execution and performance of this Agreement by RDAR has been duly authorized by the Board of Directors of RDAR. 

 

(c)The performance by RDAR of this Agreement will not violate any applicable court decree, law or regulation, nor will it violate any provisions of the organizational documents of RDAR or any contractual obligation by which RDAR may be bound. 

 

(d)RDAR will make its best efforts to qualify the Offering Statement. 

 

5.Representations of Attorney. Attorney represents and warrants to RDAR that: 

 

(a)Attorney is acquiring the Notes and the Conversion Shares for Attorney’s own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act of 1933, as amended (the “1933 Act”); provided, however, that by making the representations herein, Attorney does not agree to hold any of the Conversion Shares for any minimum or other specific term and reserves the right to dispose of the Conversion Shares at any time in accordance with, or pursuant to, a registration statement or an exemption under the 1933 Act. 

 

(b)The Buyer is an “accredited investor” as that term is defined in Rule 501(a) of Regulation  


LEGAL SERVICES AGREEMENT   |   PAGE 2



(c)Attorney understands that the Note and the Conversion Shares are being issued to Attorney in reliance upon specific exemptions from the registration requirements of United States federal and state securities laws and that RDAR is relying upon the truth and accuracy of, and Attorney’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of Attorney set forth herein, in order to determine the availability of such exemptions. 

 

(d)Attorney understands that, until such time as the Notes and the Conversion Shares shall have been registered under the 1933 Act or may be sold pursuant to Rule 144, Rule 144A under the 1933 Act, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, the Notes and the Conversion Shares may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer thereof): 

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

(e)The execution and performance of this Agreement by Attorney has been duly authorized by the governing body of Attorney. 

 

(f)The performance by Attorney of this Agreement will not violate any applicable court decree, law or regulation, nor will it violate any provisions of the organizational documents of Attorney or any contractual obligation by which Attorney may be bound. 

 

6.Non-Public Information. Until such time as the same may become publicly known, the parties agree that any information provided to either of them by the other of a confidential nature will not be revealed or disclosed to any person or entity, except in the performance of this Agreement, and upon completion of Attorney’s services and upon the written request of RDAR, any original documentation provided by RDAR will be returned to it. Attorney will not directly or indirectly buy or sell any securities of RDAR at any time when Attorney is privy to non-public information. 

 

7.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (1) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (2) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 


LEGAL SERVICES AGREEMENT   |   PAGE 3



If to RDAR, to:Raadr, Inc., Attention: Jacob DiMartino 

7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260

E-mail: jacob.d@raadr.com

 

If to Attorney, to:Newlan Law Firm, PLLC, Attention: Eric Newlan 

2201 Long Prairie Road, Suite 107-762, Flower Mound, Texas 75022

E-mail: eric@newlanpllc.com

 

8.Miscellaneous. 

 

(a)In the event of a dispute between the parties, both Consultant and the Company agree to settle said dispute through the American Arbitration Association (the “Association”) at the Association’s Dallas, Texas, offices, in accordance with the then-current rules of the Association; the award given by the arbitrators shall be binding and a judgment can be obtained on any such award in any court of competent jurisdiction. It is expressly agreed that the arbitrators, as part of their award, can award attorneys fees to the prevailing party. 

 

(b)This Agreement is not assignable in whole or in any part, and shall be binding upon the parties, their heirs, representatives, successors or assigns. 

 

(c)This Agreement may be executed in multiple counterparts which shall be deemed an original. It shall not be necessary that each party execute each counterpart, or that any one counterpart be executed by more than one party, if each party executes at least one counterpart. 

 

(d)This Agreement shall be governed by, and construed in accordance with, the laws of the State of Texas. 

 

IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first written above. 

 

RDAR:

 

ATTORNEY:

 

 

 

RAADR, INC.

 

NEWLAN LAW FIRM, PLLC

 

 

 

 

 

 

By: /s/ Jacob DiMartino

 

By: /s/ Eric Newlan

Jacob DiMartino

 

Eric Newlan

Chief Executive Officer

 

Managing Member

 

 

 

 


LEGAL SERVICES AGREEMENT   |   PAGE 4



EXHIBIT A

 

INVOICE

 

 

 

INVOICE – 7/15/2024

Raadr, Inc.

 

 

 

For Professional Services Rendered, But Not Previously Invoiced, from January

2023 Through July 15, 2024, Net of Payments Received on Account:

 

Post-Qualification Amendments to Regulation A Offering; Board and Shareholder Written Actions; Filings with the State of Nevada; Draft Miscellaneous Agreements, Debt Instruments and Related Documents; OTC Markets Periodic Filings, including Quarterly Reports, Annual Reports and Attorney Letters; Miscellaneous Corporate Counsel; Telephone Conferences; Correspondence

 

 

150 Hours @ $500/Hour 

 

$ 75,000.00  

 

Discount Per Oral Agreement (15,000.00)

 

Total Professional Services 60,000.00

 

BALANCE DUE $ 60,000.00

 

Due on Receipt

 

 

 

 

 

 

 

 

 


LEGAL SERVICES AGREEMENT   |   PAGE 5



EXHIBIT B

 

Form of Current Amount Note

 

 

 

THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

RAADR, INC.

 

5% CONVERTIBLE PROMISSORY NOTE

 

Principal Amount: $60,000.00Issuance Date: July 15, 2024 

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (the “Company”), promises to pay to NLF Support Services, LLC (“Holder”), the Principal Amount, together with interest accrued thereon, as hereinafter provided. 

 

Certain capitalized terms used herein are defined in Section 20. 

 

1.Interest. 

 

(a)Rate. Interest shall accrue on the Principal Amount at the rate of five percent (5%) per annum (“Interest”) commencing as of the Issuance Date and continuing through the date on which this Note automatically converts as provided in Section 2 below or the Company otherwise fully satisfies all of its obligations under this Note. All computations of Interest hereunder shall be made on the basis of a 360-day year of twelve 30-day months. 

 

(b)Default Rate. If all or a portion of the Principal Amount or Interest shall not be paid when due (whether at its stated maturity, by acceleration or otherwise), the Company hereby promises to pay, on demand, interest on such overdue amount from and including the due date to, but excluding, the date such amount is paid in full, at twelve percent (12%) per annum until the date such overdue amount is paid in full. 

 

2.Maturity; Conversion. This Note shall mature on the earlier of the Qualification Date or July 31, 2025, as provided in this Section 2. 

 

(a)Conversion. 

 

(i)Automatic Conversion on Qualification Date. On the Qualification Date, the Outstanding Balance shall, without any action on the part of Holder, automatically convert into a number of Conversion Shares calculated by dividing the Outstanding Balance by the Conversion Rate (“Automatic Conversion”). Upon issuance as provided in this Section 2(a)(i), the Conversion Shares shall be fully paid and non-assessable shares of the Common Stock of the Company. As of the Qualification Date, this Note shall be of no further force or effect and the Company’s only obligation to Holder shall be to deliver a certificate evidencing the Conversion Shares. 

 

(ii)Mechanics of Conversion. 

 

(1)Upon the Qualification Date, the Company shall provide Holder with written notice thereof and within two business days thereafter, Holder shall surrender this Note to the Company in the manner provided in such notice. Upon conversion and surrender of this Note, Holder hereby agrees to execute and deliver to the Company a subscription agreement (the “Subscription Agreement”), in the form included in the Offering Statement on Form 1-A that embodies the Regulation A Offering. 

 

(2)The Company shall, as soon as practicable after the surrender of this Note and delivery of the Subscription Agreement as provided in Section 2(a)(ii)(1) above, issue and deliver to Holder, a certified book statement representing the number of Conversion Shares to which Holder shall be entitled. The Company shall not be obligated to issue any certificate or other instrument evidencing any Conversion Shares, unless this Note is either delivered to the Company or Holder notifies the Company that this Note has been lost, stolen or destroyed and executes an agreement reasonably satisfactory to the Company to indemnify the Company from any loss incurred by the Company in connection therewith. 

 

(iii)No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. No fractional shares of equity securities shall be issued upon conversion of this Note into Conversion Shares. In lieu of fractional shares to which Holder would otherwise be entitled, the Company shall round up any fractional share to the next whole share. 

 

(iv)Cancellation of Note. Upon the conversion of this Note pursuant to this Section 2(a), this Note shall be canceled and of no further force or effect and, Holder’s only remedy shall be to receive a certificate representing the Conversion Shares. 

 

(b)Payment on Maturity. Unless sooner converted in accordance with Section 2(a), the Outstanding Balance shall become due and payable by the Company on July 31, 2025 (the “Maturity Date”). The Company shall pay to Holder the Outstanding Balance without deduction by reason of any set-off, defense or counterclaim in immediately available funds in lawful currency of the United States of America at Holder’s address on file with the Company or at such other place as Holder shall have designated to the Company in writing. Payment shall be credited first to any costs, expenses or charges then payable to Holder, then to accrued but unpaid interest then due and payable, and then to principal. 

 

(c)Fundamental Transaction. If, prior to an Automatic Conversion or payment of the Outstanding Balance upon Maturity, the Company proposes to enter into or become a party to a Fundamental Transaction, then the Company shall transmit to Holder a Fundamental Transaction Notice not less than twenty (20) days prior to the closing date of such proposed Fundamental Transaction and Holder shall have the option to cause the Successor Entity to assume this  




Note as provided in Subsection 2(c)(i) or to convert this Note into shares of Common Stock as provided in Subsection 2(c)(ii) below. Holder shall communicate its election with respect to this Note not less than ten (10) days prior to the date of the Fundamental Transaction in the manner directed in the Fundamental Transaction Notice (the “Election Date”). If Holder fails to communicate its election to the Company prior to the Election Date, this Note automatically shall be assumed by the Successor Entity as provided in Section 2(c)(i) below.

 

(i)Assumption by Successor Entity upon Fundamental Transaction. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Note in accordance with the provisions of this Section 2(c)(i) pursuant to written agreements in form and substance reasonably satisfactory to Holder and approved by Holder (without unreasonable delay) prior to such Fundamental Transaction, including an agreement to deliver to Holder a promissory note made by the Successor Entity, which includes terms, provisions and conditions similar to the terms, provisions and conditions of this Note in all material respects, and shall provide for a principal amount and interest rate equal to the principal amount and the interest rate of this Note (the “New Note”), except that the New Note shall not include any conversion right. If Holder elects to cause the Successor Entity to issue the New Note upon the consummation of a Fundamental Transaction, upon the exchange by Holder of this Note for the New Note, this Note shall be of no further force or effect and the rights and obligations of Holder and the Successor Entity shall be as set forth in the New Note. 

 

(ii)Conversion upon Fundamental Transaction. The Fundamental Transaction Notice shall allow for Holder to elect to convert the Outstanding Balance of this Note into Common Stock and set forth the manner in which Holder may make such election and receive Conversion Shares. The Outstanding Balance of this Note shall be convertible into a number of Conversion Shares determined by dividing the Outstanding Balance by either (x) $0.001 per share or (y) an amount equal to 80% of the aggregate fair market value of all consideration paid by the Successor Entity for each share of Common Stock acquired in the Fundamental Transaction or, if the Successor Entity did not acquire the capital stock of the Company directly from the Company’s stockholders, the amount distributed by the Company to the Company’s stockholders for each share of Common Stock outstanding, whichever yields to Holder the greatest number of Conversion Shares. 

 

3.Reservation of Securities. The Company shall at all times reserve and keep available out of (a) its authorized but unissued shares of Common Stock and (b) the number of shares of Common Stock offered in the Regulation A Offering for the purpose of effecting the conversion of this Note, the full number of shares of Common Stock then issuable upon the conversion of this Note. 

 

4.Restrictive Legend. Any securities issuable upon the conversion of this Note shall be stamped or imprinted with legends substantially the following form: 

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

The certified book statement representing the Conversion Shares also will be imprinted with any legends required under the state securities laws of the jurisdiction in which Holder is domiciled or resides. 

 

5.Events of Default. If any of the following events of default (collectively, “Events of Default”) shall occur prior to the Maturity Date: 

 

(a)the Company shall fail to make the payment of any principal or interest for a period of thirty (30) days after the date such payment shall become due and payable hereunder; 

 

(b)the Company shall fail to comply with any covenant, agreement or term contained in this Note in any material respect (other than the payment of principal or interest), and such failure has continued for thirty (30) days after the Company has been notified in writing of such failure by Holder; 

 

(c)the liquidation, termination or dissolution of the Company or its ceasing to carry on actively its present business or the appointment of a receiver for a material portion of its property, or the making of an assignment for the benefit of creditors by the Company; or 

 

(d)the institution of bankruptcy, reorganization, arrangement, liquidation, receivership, moratorium or similar proceedings by or against the Company, and, if so instituted against the Company, the pendency thereof for thirty (30) days, 

 

then, and in any such event the Company shall inform Holder in writing of, and promptly upon, occurrence of such event and thereupon and at any time thereafter while such Event of Default is continuing, Holder, by written notice to the Company (the “Default Notice”), may declare the entire unpaid principal amount of this Note, together with all accrued but unpaid interest thereon, to be immediately due and payable no later than thirty (30) days after receipt of such Default Notice by the Company; provided, however, that notwithstanding the above, if there shall occur an Event of Default under clause (c) or (d) or above, then this Note shall become immediately due and payable without the necessity of any action by Holder or notice to the Company.

 

6.Waiver. The Company waives presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement hereof and also waive any delay on the part of Holder hereof. No failure or delay on the part of Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 

 

7.Powers and Remedies Cumulative. No right or remedy herein conferred upon or reserved to Holder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. Every power and remedy given by the Transaction Documents or by law may be exercised from time to time, and as often as shall be deemed expedient, by Holder. 

 

8.Parties in Interest. This Note shall be binding upon the Company and its successors and permitted assigns and the terms hereof shall inure to the benefit of Holder and its successors and permitted assigns. 

 

9.Amendments. This Note may be amended, modified or terminated only by a written instrument executed by the Company and Holder. Any amendment, modification or termination so effected shall be binding upon the Company, Holder and all of its successors and permitted assigns, whether or not such party, assignee or other holder entered into or approved such amendment, modification or termination. 




10.Binding Effect. The obligations of the Company and Holder set forth herein shall be binding upon the successors and permitted assigns of each such party. 

 

11.Maximum Permissible Rate. Notwithstanding anything herein to the contrary, payment of any interest, expense or other amount shall not be required if such payment would be unlawful. In any such event, this Note shall automatically be deemed amended so that interest charges and all other payments required hereunder, individually and in the aggregate, shall be equal to but not greater than the maximum permitted by law. 

 

12.Severability. In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, then and in any such event, such provision(s) only shall be deemed null and void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and in no way shall be affected, prejudiced, or disturbed thereby. 

 

13.Reserved. 

 

14.Indemnity and Enforcement Expenses. The Company agrees: 

 

(a)to indemnify and hold harmless Holder and each of officers, directors, members, employees, agents, Affiliates and successors from and against any and all claims, damages, demands, losses, obligations, judgments, suits, actions, threats and liabilities (including, without limitation, reasonable attorneys’ fees and expenses) in any way arising out of or in connection with this Note; and 

 

(b)to pay and reimburse Holder upon demand for all costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) that Holder may incur in connection with (i) the exercise or enforcement of any rights or remedies (including, but not limited to, collection) granted hereunder or otherwise available to it (whether at law, in equity or otherwise), or (ii) the failure by the Company to perform or observe any of the provisions hereof. 

 

The provisions of this Section 14 shall survive the execution and delivery of this Note, the repayment of any or all of the Principal Amount and/or Accrued Interest and the conversion of all or any portion of the Outstanding Balance. 

 

15.Governing Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement, including relating to the dissolution of the Company, whether sounding in contract, tort, equity or otherwise, shall be governed by and construed in accordance with the internal laws of the State of Nevada, without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Nevada. 

 

16.Governing Law; Venue. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. 

 

17.Replacement of Note. In case this Note shall become mutilated or defaced, or be destroyed, lost or stolen, the Company shall execute and deliver a new note of like tenor and amount in exchange and substitution for the mutilated or defaced Note, or in lieu of and in substitution for the destroyed, lost or stolen Note. In the case of a mutilated or defaced Note, Holder shall surrender such Note to the Company. In the case of any destroyed, lost or stolen Note, Holder shall furnish to the Company: (a) evidence to its satisfaction of the destruction, loss or theft of such Note and (b) such security or indemnity as may be reasonably required by the Company to hold the Company harmless. 

 

18.Headings. Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute a part of this Note for any other purpose. 

 

19.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (ii) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. 

 

The addresses for such communications shall be:  

 

If to the Company, to:

Raadr, Inc., 7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260

Attention: Chief Executive Officer 

 

If to Holder:

NLF Support Services, LLC, 16380 County Road 306, Buena Vista, Colorado 81211

Attention: Director of Investments 

 

20.Definitions. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in this Section 1. 

 

(a)“Common Stock” means the Company’s common stock, par value $0.001 per share. 

 

(b)“Conversion Rate” means the rate at which the Outstanding Balance converts into shares of Common Stock, which shall be equal to the Offering Price. 




(c)“Conversion Shares” means the shares of Common Stock issuable upon conversion of this Note, comprising shares of Common Stock offered in the Regulation A Offering and Holder shall be deemed to have purchased the Conversion Shares in the Regulation A Offering. 

 

(d)“Exchange Act” means the Securities Exchange Act of 1934. 

 

(e)“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person or Persons, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of capital stock (not including any shares of capital stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization or spin-off) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of capital stock of the Company, or (v) reorganize, recapitalize or reclassify its class of common stock or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate capital stock of the Company outstanding. 

 

(f)“Fundamental Transaction Notice” means the written notice from the Company to Holder describing a proposed Fundamental Transaction which shall include all material nonpublic information then possessed by the Company pertaining to the Fundamental Transaction and the Successor Entity, including the fair market value of the consideration to be paid by the Successor for each share of Common Stock outstanding. 

 

(g)“Note” shall mean this 5% Convertible Promissory Note. 

 

(h)“Offering Price” shall mean the price at which the shares of Common Stock are offered in the Regulation A Offering. 

 

(i)“Outstanding Balance” shall mean the Principal Amount and all interest accrued thereon at any time as calculated in accordance with this Note. 

 

(j)“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

 

(k)“Qualification Date” shall mean the date on which the Company’s offering circular with respect to the offering of Common Stock pursuant to Regulation A is first “qualified” by the SEC and any other relevant state or other jurisdictional qualification. 

 

(l)“Regulation A” shall mean Regulation A of the rules and regulations promulgated under the Securities Act. 

 

(m)“Regulation A Offering” shall mean the first offering of shares of Common Stock to be undertaken by the Company pursuant to Regulation A after the Issuance Date of this Note. 

 

(n)“Required Holders” means the holders of at least a majority of the principal amount of the Notes then outstanding. 

 

(o)“SEC” shall mean the United States Securities and Exchange Commission. 

 

(p)“Securities Act” shall mean the Securities Act of 1933, as amended. 

 

(q)“Successor Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental Transaction shall have been made. 

 

The Company has caused this Convertible Promissory Note to be signed in its name and executed as of the date first written above. 

 

RAADR, INC. 

 

EXEMPLAR 

By: ________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 

 




EXHIBIT C

 

Form of Work Note

 

 

 

THIS 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 THE APPLICABLE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE OFFERED, SOLD, ASSIGNED, PLEDGED OR OTHERWISE TRANSFERRED UNLESS REGISTERED UNDER THE ACT AND UNDER APPLICABLE STATE SECURITIES LAWS, OR UNLESS AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE MAKER, IS OBTAINED TO THE EFFECT THAT SUCH PLEDGE, SALE, ASSIGNMENT OR TRANSFER IS EXEMPT FROM THE REGISTRATION REQUIREMENTS OF THE ACT AND SUCH STATE SECURITIES LAWS.

 

 

RAADR, INC.

 

5% CONVERTIBLE PROMISSORY NOTE

 

Principal Amount: $40,000.00Issuance Date: July 15, 2024 

 

FOR VALUE RECEIVED, Raadr, Inc., a Nevada corporation (the “Company”), promises to pay to NLF Support Services, LLC (“Holder”), the Principal Amount, together with interest accrued thereon, as hereinafter provided. 

 

Certain capitalized terms used herein are defined in Section 20. 

 

1.Interest. 

 

(a)Rate. Interest shall accrue on the Principal Amount at the rate of five percent (5%) per annum (“Interest”) commencing as of the Issuance Date and continuing through the date on which this Note automatically converts as provided in Section 2 below or the Company otherwise fully satisfies all of its obligations under this Note. All computations of Interest hereunder shall be made on the basis of a 360-day year of twelve 30-day months. 

 

(b)Default Rate. If all or a portion of the Principal Amount or Interest shall not be paid when due (whether at its stated maturity, by acceleration or otherwise), the Company hereby promises to pay, on demand, interest on such overdue amount from and including the due date to, but excluding, the date such amount is paid in full, at twelve percent (12%) per annum until the date such overdue amount is paid in full. 

 

2.Maturity; Conversion. This Note shall mature on the earlier of the Qualification Date or July 31, 2025, as provided in this Section 2. 

 

(a)Conversion. 

 

(i)Automatic Conversion on Qualification Date. On the Qualification Date, the Outstanding Balance shall, without any action on the part of Holder, automatically convert into a number of Conversion Shares calculated by dividing the Outstanding Balance by the Conversion Rate (“Automatic Conversion”). Upon issuance as provided in this Section 2(a)(i), the Conversion Shares shall be fully paid and non-assessable shares of the Common Stock of the Company. As of the Qualification Date, this Note shall be of no further force or effect and the Company’s only obligation to Holder shall be to deliver a certificate evidencing the Conversion Shares. 

 

(ii)Mechanics of Conversion. 

 

(1)Upon the Qualification Date, the Company shall provide Holder with written notice thereof and within two business days thereafter, Holder shall surrender this Note to the Company in the manner provided in such notice. Upon conversion and surrender of this Note, Holder hereby agrees to execute and deliver to the Company a subscription agreement (the “Subscription Agreement”), in the form included in the Offering Statement on Form 1-A that embodies the Regulation A Offering. 

 

(2)The Company shall, as soon as practicable after the surrender of this Note and delivery of the Subscription Agreement as provided in Section 2(a)(ii)(1) above, issue and deliver to Holder, a certified book statement representing the number of Conversion Shares to which Holder shall be entitled. The Company shall not be obligated to issue any certificate or other instrument evidencing any Conversion Shares, unless this Note is either delivered to the Company or Holder notifies the Company that this Note has been lost, stolen or destroyed and executes an agreement reasonably satisfactory to the Company to indemnify the Company from any loss incurred by the Company in connection therewith. 

 

(iii)No Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. No fractional shares of equity securities shall be issued upon conversion of this Note into Conversion Shares. In lieu of fractional shares to which Holder would otherwise be entitled, the Company shall round up any fractional share to the next whole share. 

 

(iv)Cancellation of Note. Upon the conversion of this Note pursuant to this Section 2(a), this Note shall be canceled and of no further force or effect and, Holder’s only remedy shall be to receive a certificate representing the Conversion Shares. 

 

(b)Payment on Maturity. Unless sooner converted in accordance with Section 2(a), the Outstanding Balance shall become due and payable by the Company on July 31, 2025 (the “Maturity Date”). The Company shall pay to Holder the Outstanding Balance without deduction by reason of any set-off, defense or counterclaim in immediately available funds in lawful currency of the United States of America at Holder’s address on file with the Company or at such other place as Holder shall have designated to the Company in writing. Payment shall be credited first to any costs, expenses or charges then payable to Holder, then to accrued but unpaid interest then due and payable, and then to principal. 

 

(c)Fundamental Transaction. If, prior to an Automatic Conversion or payment of the Outstanding Balance upon Maturity, the Company proposes to enter into or become a party to a Fundamental Transaction, then the Company shall transmit to Holder a Fundamental Transaction Notice not less than twenty (20) days prior to the closing date of such proposed Fundamental Transaction and Holder shall have the option to cause the Successor Entity to assume this  




Note as provided in Subsection 2(c)(i) or to convert this Note into shares of Common Stock as provided in Subsection 2(c)(ii) below. Holder shall communicate its election with respect to this Note not less than ten (10) days prior to the date of the Fundamental Transaction in the manner directed in the Fundamental Transaction Notice (the “Election Date”). If Holder fails to communicate its election to the Company prior to the Election Date, this Note automatically shall be assumed by the Successor Entity as provided in Section 2(c)(i) below.

 

(i)Assumption by Successor Entity upon Fundamental Transaction. The Company shall not enter into or be party to a Fundamental Transaction unless the Successor Entity assumes in writing all of the obligations of the Company under this Note in accordance with the provisions of this Section 2(c)(i) pursuant to written agreements in form and substance reasonably satisfactory to Holder and approved by Holder (without unreasonable delay) prior to such Fundamental Transaction, including an agreement to deliver to Holder a promissory note made by the Successor Entity, which includes terms, provisions and conditions similar to the terms, provisions and conditions of this Note in all material respects, and shall provide for a principal amount and interest rate equal to the principal amount and the interest rate of this Note (the “New Note”), except that the New Note shall not include any conversion right. If Holder elects to cause the Successor Entity to issue the New Note upon the consummation of a Fundamental Transaction, upon the exchange by Holder of this Note for the New Note, this Note shall be of no further force or effect and the rights and obligations of Holder and the Successor Entity shall be as set forth in the New Note. 

 

(ii)Conversion upon Fundamental Transaction. The Fundamental Transaction Notice shall allow for Holder to elect to convert the Outstanding Balance of this Note into Common Stock and set forth the manner in which Holder may make such election and receive Conversion Shares. The Outstanding Balance of this Note shall be convertible into a number of Conversion Shares determined by dividing the Outstanding Balance by either (x) $0.001 per share or (y) an amount equal to 80% of the aggregate fair market value of all consideration paid by the Successor Entity for each share of Common Stock acquired in the Fundamental Transaction or, if the Successor Entity did not acquire the capital stock of the Company directly from the Company’s stockholders, the amount distributed by the Company to the Company’s stockholders for each share of Common Stock outstanding, whichever yields to Holder the greatest number of Conversion Shares. 

 

3.Reservation of Securities. The Company shall at all times reserve and keep available out of (a) its authorized but unissued shares of Common Stock and (b) the number of shares of Common Stock offered in the Regulation A Offering for the purpose of effecting the conversion of this Note, the full number of shares of Common Stock then issuable upon the conversion of this Note. 

 

4.Restrictive Legend. Any securities issuable upon the conversion of this Note shall be stamped or imprinted with legends substantially the following form: 

 

“THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE, AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED UNLESS AND UNTIL REGISTERED UNDER SUCH ACT AND/OR APPLICABLE STATE SECURITIES LAWS, OR UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL OR OTHER EVIDENCE, REASONABLY SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED.”

 

The certified book statement representing the Conversion Shares also will be imprinted with any legends required under the state securities laws of the jurisdiction in which Holder is domiciled or resides. 

 

5.Events of Default. If any of the following events of default (collectively, “Events of Default”) shall occur prior to the Maturity Date: 

 

(a)the Company shall fail to make the payment of any principal or interest for a period of thirty (30) days after the date such payment shall become due and payable hereunder; 

 

(b)the Company shall fail to comply with any covenant, agreement or term contained in this Note in any material respect (other than the payment of principal or interest), and such failure has continued for thirty (30) days after the Company has been notified in writing of such failure by Holder; 

 

(c)the liquidation, termination or dissolution of the Company or its ceasing to carry on actively its present business or the appointment of a receiver for a material portion of its property, or the making of an assignment for the benefit of creditors by the Company; or 

 

(d)the institution of bankruptcy, reorganization, arrangement, liquidation, receivership, moratorium or similar proceedings by or against the Company, and, if so instituted against the Company, the pendency thereof for thirty (30) days, 

 

then, and in any such event the Company shall inform Holder in writing of, and promptly upon, occurrence of such event and thereupon and at any time thereafter while such Event of Default is continuing, Holder, by written notice to the Company (the “Default Notice”), may declare the entire unpaid principal amount of this Note, together with all accrued but unpaid interest thereon, to be immediately due and payable no later than thirty (30) days after receipt of such Default Notice by the Company; provided, however, that notwithstanding the above, if there shall occur an Event of Default under clause (c) or (d) or above, then this Note shall become immediately due and payable without the necessity of any action by Holder or notice to the Company.

 

6.Waiver. The Company waives presentment, demand, notice, protest and all other demands and notices in connection with the delivery, acceptance, performance, default or enforcement hereof and also waive any delay on the part of Holder hereof. No failure or delay on the part of Holder in the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or privilege. 

 

7.Powers and Remedies Cumulative. No right or remedy herein conferred upon or reserved to Holder is intended to be exclusive of any other right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative and in addition to every other right and remedy given hereunder or now hereafter existing at law or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right or remedy. Every power and remedy given by the Transaction Documents or by law may be exercised from time to time, and as often as shall be deemed expedient, by Holder. 

 

8.Parties in Interest. This Note shall be binding upon the Company and its successors and permitted assigns and the terms hereof shall inure to the benefit of Holder and its successors and permitted assigns. 

 

9.Amendments. This Note may be amended, modified or terminated only by a written instrument executed by the Company and Holder. Any amendment, modification or termination so effected shall be binding upon the Company, Holder and all of its successors and permitted assigns, whether or not such party, assignee or other holder entered into or approved such amendment, modification or termination. 




10.Binding Effect. The obligations of the Company and Holder set forth herein shall be binding upon the successors and permitted assigns of each such party. 

 

11.Maximum Permissible Rate. Notwithstanding anything herein to the contrary, payment of any interest, expense or other amount shall not be required if such payment would be unlawful. In any such event, this Note shall automatically be deemed amended so that interest charges and all other payments required hereunder, individually and in the aggregate, shall be equal to but not greater than the maximum permitted by law. 

 

12.Severability. In the event any one or more of the provisions of this Note shall for any reason be held to be invalid, illegal or unenforceable, in whole or in part or in any respect, or in the event that any one or more of the provisions of this Note operate or would prospectively operate to invalidate this Note, then and in any such event, such provision(s) only shall be deemed null and void and shall not affect any other provision of this Note and the remaining provisions of this Note shall remain operative and in full force and effect and in no way shall be affected, prejudiced, or disturbed thereby. 

 

13.Reserved. 

 

14.Indemnity and Enforcement Expenses. The Company agrees: 

 

(a)to indemnify and hold harmless Holder and each of officers, directors, members, employees, agents, Affiliates and successors from and against any and all claims, damages, demands, losses, obligations, judgments, suits, actions, threats and liabilities (including, without limitation, reasonable attorneys’ fees and expenses) in any way arising out of or in connection with this Note; and 

 

(b)to pay and reimburse Holder upon demand for all costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) that Holder may incur in connection with (i) the exercise or enforcement of any rights or remedies (including, but not limited to, collection) granted hereunder or otherwise available to it (whether at law, in equity or otherwise), or (ii) the failure by the Company to perform or observe any of the provisions hereof. 

 

The provisions of this Section 14 shall survive the execution and delivery of this Note, the repayment of any or all of the Principal Amount and/or Accrued Interest and the conversion of all or any portion of the Outstanding Balance. 

 

15.Governing Law. All issues and questions concerning the application, construction, validity, interpretation and enforcement of this Agreement, including relating to the dissolution of the Company, whether sounding in contract, tort, equity or otherwise, shall be governed by and construed in accordance with the internal laws of the State of Nevada, without giving effect to any choice or conflict of law provision or rule (whether of the State of Nevada or any other jurisdiction) that would cause the application of laws of any jurisdiction other than those of the State of Nevada. 

 

16.Governing Law; Venue. This Note shall be governed by and construed in accordance with the laws of the State of Nevada without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of Nevada or in the federal courts located in Las Vegas, Nevada. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. 

 

17.Replacement of Note. In case this Note shall become mutilated or defaced, or be destroyed, lost or stolen, the Company shall execute and deliver a new note of like tenor and amount in exchange and substitution for the mutilated or defaced Note, or in lieu of and in substitution for the destroyed, lost or stolen Note. In the case of a mutilated or defaced Note, Holder shall surrender such Note to the Company. In the case of any destroyed, lost or stolen Note, Holder shall furnish to the Company: (a) evidence to its satisfaction of the destruction, loss or theft of such Note and (b) such security or indemnity as may be reasonably required by the Company to hold the Company harmless. 

 

18.Headings. Article and section headings in this Note are included herein for purposes of convenience of reference only and shall not constitute a part of this Note for any other purpose. 

 

19.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (iv) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (i) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (ii) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. 

 

The addresses for such communications shall be:  

 

If to the Company, to:

Raadr, Inc., 7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260

Attention: Chief Executive Officer 

 

If to Holder:

NLF Support Services, LLC, 16380 County Road 306, Buena Vista, Colorado 81211

Attention: Director of Investments 

 

20.Definitions. Capitalized terms not otherwise defined herein shall have the meanings ascribed to them in this Section 1. 

 

(a)“Common Stock” means the Company’s common stock, par value $0.001 per share. 

 

(b)“Conversion Rate” means the rate at which the Outstanding Balance converts into shares of Common Stock, which shall be equal to the Offering Price. 




(c)“Conversion Shares” means the shares of Common Stock issuable upon conversion of this Note, comprising shares of Common Stock offered in the Regulation A Offering and Holder shall be deemed to have purchased the Conversion Shares in the Regulation A Offering. 

 

(d)“Exchange Act” means the Securities Exchange Act of 1934. 

 

(e)“Fundamental Transaction” means that the Company shall, directly or indirectly, in one or more related transactions, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person or Persons, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the assets of the Company to another Person, or (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than 50% of the outstanding shares of capital stock (not including any shares of capital stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization or spin-off) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of capital stock of the Company, or (v) reorganize, recapitalize or reclassify its class of common stock or (vi) any “person” or “group” (as these terms are used for purposes of Sections 13(d) and 14(d) of the Exchange Act) is or shall become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 50% of the aggregate capital stock of the Company outstanding. 

 

(f)“Fundamental Transaction Notice” means the written notice from the Company to Holder describing a proposed Fundamental Transaction which shall include all material nonpublic information then possessed by the Company pertaining to the Fundamental Transaction and the Successor Entity, including the fair market value of the consideration to be paid by the Successor for each share of Common Stock outstanding. 

 

(g)“Note” shall mean this 5% Convertible Promissory Note. 

 

(h)“Offering Price” shall mean the price at which the shares of Common Stock are offered in the Regulation A Offering. 

 

(i)“Outstanding Balance” shall mean the Principal Amount and all interest accrued thereon at any time as calculated in accordance with this Note. 

 

(j)“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

 

(k)“Qualification Date” shall mean the date on which the Company’s offering circular with respect to the offering of Common Stock pursuant to Regulation A is first “qualified” by the SEC and any other relevant state or other jurisdictional qualification. 

 

(l)“Regulation A” shall mean Regulation A of the rules and regulations promulgated under the Securities Act. 

 

(m)“Regulation A Offering” shall mean the first offering of shares of Common Stock to be undertaken by the Company pursuant to Regulation A after the Issuance Date of this Note. 

 

(n)“Required Holders” means the holders of at least a majority of the principal amount of the Notes then outstanding. 

 

(o)“SEC” shall mean the United States Securities and Exchange Commission. 

 

(p)“Securities Act” shall mean the Securities Act of 1933, as amended. 

 

(q)“Successor Entity” means the Person, which may be the Company, formed by, resulting from or surviving any Fundamental Transaction or the Person with which such Fundamental Transaction shall have been made. 

 

The Company has caused this Convertible Promissory Note to be signed in its name and executed as of the date first written above. 

 

RAADR, INC. 

 

EXEMPLAR 

By: ________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 

 

 

 


Execution Copy

 

DATED 31 OCTOBER 2024

 

 

 

 

 

 

MEXEDIA DAC

as Borrower and an Obligor

 

MATCHCOM TELECOMMUNICATION INC

as an Obligor

 

PHONETIME INC

as an Obligor

 

- and -

 

FASANARA SECURITISATION S.A., ACTING FOR AND ON BEHALF OF ITS COMPARTMENT H

as Lender

 

 

 

 

 

 

 

 

FACILITY AGREEMENT



CONTENTS

Clause

Page

1. DEFINITIONS AND INTERPRETATION

1

2. THE FACILITY

10

3. PURPOSE

10

4. CONDITIONS PRECEDENT

10

5. DRAWDOWN

11

6. REPAYMENT

12

7. PREPAYMENT AND CANCELLATION

12

8. INTEREST

14

9. TAX GROSS-UP AND INDEMNITIES

16

10. OTHER INDEMNITIES

17

11. MITIGATION BY THE LENDER

17

12. COSTS AND EXPENSES

18

13. REPRESENTATIONS

19

14. INFORMATION UNDERTAKINGS

21

15. GENERAL UNDERTAKINGS

23

16. GUARANTEE

25

17. EVENTS OF DEFAULT

27

18. CHANGES TO THE LENDER

31

19. CHANGES TO THE BORROWER

31

20. PAYMENT MECHANICS

32

21. SET-OFF

33

22. NOTICES

33

23. CALCULATIONS AND CERTIFICATES

35

24. PARTIAL INVALIDITY

35

25. REMEDIES AND WAIVERS

36

26. NO PARTNERSHIP

36

27. AMENDMENTS AND WAIVERS

36

28. CONFIDENTIAL INFORMATION

36

29. LIMITED RECOURSE AND NON-PETITION

38

30. COUNTERPARTS

40

31. GOVERNING LAW

41

32. ENFORCEMENT

41

Schedule 1 CONDITIONS PRECEDENT

42


- 1 -



Schedule 2 DRAWDOWN REQUEST

44

Schedule 3 REPAYMENT SCHEDULE

45

SIGNATURES

50


- 2 -



THIS AGREEMENT is dated  and made between: 

(1)MEXEDIA DAC, a company incorporated and registered in the Republic of Ireland with company number 601653, having its registered office at 17 Clanwilliam Square, Grand Canal Quay, Dublin 2, Dublin, Republic of Ireland (the “Borrower”); 

(2)PHONETIME INC, a company incorporated and registered in the State of Florida with company number 6639338, having its registered office at 1680 Michigan Ave suite 700, Miami Beach, FL 33139, USA (referred to as an “Obligor”); and 

(3)MATCHCOM TELECOMMUNICATION INC, a company incorporated and registered in the State of Florida with company number 830874509, having its registered office at 1680 Michigan Ave suite 700, Miami Beach, FL 33139, USA (referred to as an “Obligor”), 

(4)FASANARA SECURITISATION S.A., public limited liability company (société anonyme) incorporated under the laws of Luxembourg as an unregulated securitisation company (société de titrisation) within the meaning of, and governed by, the Luxembourg law dated 22 March 2004 on securitisation, as amended from time to time, having its registered office at 17, Boulevard F.W. Raiffeisen, L - 2411 Luxembourg, Grand Duchy of Luxembourg and registered with the Luxembourg trade and companies register under number B236528, acting in respect of its Compartment H (the “Lender”). 

IT IS AGREED as follows:

SECTION 1 INTERPRETATION

1.DEFINITIONS AND INTERPRETATION 

1.1Definitions 

In this Agreement:

Affiliate” means, at any time:

(a)with respect to the Lender, any other person that at such time directly or indirectly through one or more intermediaries is controlled by, or is under common control with the Lender (which, for the avoidance of doubt, shall include Fasanara Capital Ltd and any of the funds managed by or advised by Fasanara Capital Ltd); and 

(b)with respect to any other person, another person directly or indirectly controlling, controlled by or under common control with such person, 

provided that, as used in this definition, “control” means: (i) holding the majority of the voting rights or corporate capital of such person; or (ii) otherwise having the power to direct the management and policies of such person, and "controlled" has a commensurate meaning.

Agreement” means this Facility Agreement.


- 1 -



Authorisation” means an authorisation, consent, approval, resolution, licence, exemption, filing, notarisation or registration.

Business Day” means a day other than a Saturday, Sunday or a public holiday in England, the Grand Duchy of Luxembourg and the Republic of Ireland, when banks in London, Luxembourg City and Dublin are open for business.

"Charged Property" means all of the assets of the Obligors which from time to time are, or are expressed to be, the subject of the Transaction Security.

Commitment” means EUR 43,932,037.52.

Confidential Information” means all information relating to the Obligors, the Lender, any Affiliate, the Group, the Finance Documents or the Facility of which a Party becomes aware in its capacity as, or for the purpose of becoming, a Party or which is received by a Party in relation to, or for the purpose of becoming a Party under, the Finance Documents or the Facility from either:

(a)any Affiliate or any of its advisers; or 

(b)another Party, if the information was obtained by the Party directly or indirectly from any Affiliate or any of its advisers, 

in whatever form, and includes information given orally and any document, electronic file or any other way of representing or recording information which contains or is derived or copied from such information but excludes information that:

(i)is or becomes public information other than as a direct or indirect result of any breach by a Party of Clause 28 (Confidential Information); or 

(ii)is identified in writing at the time of delivery as non-confidential by any Affiliate or any of its advisers; or 

(iii)is known by a Party before the date the information is disclosed to it in accordance with paragraphs (a) or (b) above or is lawfully obtained by a Party after that date, from a source which is, as far as a Party is aware, unconnected with any Affiliate and which, in either case, as far as the Party is aware, has not been obtained in breach of, and is not otherwise subject to, any obligation of confidentiality. 

Confidentiality Undertaking” means a confidentiality undertaking in a form agreed between the Borrower and the Lender.

Data Protection Regulation” means the Data Protection Act 2018, the General Data Protection Regulation (EU) 2016/679 and the Luxembourg law dated 1 August 2018 on the protection of individuals with regard to the processing of personal data, in each case, as amended from time to time, and any other relevant and/or equivalent regulation relating to data protection in the United Kingdom or the European Union.

Default” means an Event of Default or any event or circumstance specified in Clause

15.11 (Events of Default) which would (with the expiry of a grace period, the giving of


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notice, the making of any determination under the Finance Documents or any combination of any of the foregoing) be an Event of Default.

Delegate” means any delegate, agent, attorney or co-trustee appointed by the Lender. “Drawdown” means the utilisation of the Facility.

Drawdown Date” means the date of the Drawdown, being the date on which the Loan is to be made.

Drawdown Request” means the notice substantially in the form set out in Schedule 2 (Drawdown Request).

Event of Default” means any event or circumstance specified as such in Clause 15.11 (Events of Default).

Facility” means the loan facility made available under this Agreement as described in Clause 2 (The Facility).

Finance Document” means this Agreement, the Netting Letter, any Transaction Security Document, the Drawdown Request and any other document designated as such by the Lender and the Borrower.

Financial Indebtedness” means any indebtedness for or in respect of:

(a)moneys borrowed; 

(b)any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent; 

(c)any amount raised pursuant to any note purchase facility or the issue of bonds, notes, debentures, loan stock or any similar instrument; 

(d)the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with GAAP or IFRS, be treated as a balance sheet liability; 

(e)receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis); 

(f)any amount raised under any other transaction (including any forward sale or purchase agreement) of a type not referred to in any other paragraph of this definition having the commercial effect of a borrowing; 

(g)any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any derivative transaction, only the marked to market value (or, if any actual amount is due as a result of the termination or close-out of that derivative transaction, that amount) shall be taken into account); 


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(h)any counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by a bank or financial institution; and 

(i)the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (a) to (h) above. 

Generally Accepted Accounting Principles or GAAP” means accounting principles, concepts, bases and policies generally adopted and accepted in the Republic of Ireland.

Group” means the Parent and each of its Subsidiaries.

Holding Company” means, in relation to a person, any other person in respect of which it is a Subsidiary.

IFRS” means international accounting standards within the meaning of IAS Regulation 1606/2002 to the extent applicable to the relevant financial statements.

Interest Period” means, in relation to the Loan, each period determined in accordance with Clause 8.3 (Interest Periods) and, in relation to an Unpaid Sum, the period commencing as from the date such amount is overdue until the date of actual payment.

Insolvency Official” means, in respect of any company, a liquidator, provisional liquidator, administrator (whether appointed by the court or otherwise), judicial custodian, compulsory manager, insolvency administrator, court-supervisor, supervisor of the arrangement, licensed adviser, administrative receiver, receiver or manager, nominee, supervisor, trustee in bankruptcy, conservator, guardian or other similar official in respect of such company or in respect of all (or substantially all) of the company’s assets or in respect of any arrangement or composition with creditors or any equivalent or analogous officer under the law of any jurisdiction.

Insolvency Proceedings” means the winding-up, dissolution, company voluntary arrangement or administration of a company or corporation and shall be construed so as to include any equivalent or analogous proceedings under the law of the jurisdiction in which such company or corporation is incorporated or of any jurisdiction in which such company or corporation carries on business including the seeking of liquidation, winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief from creditors or the appointment of an Insolvency Official.

Irish Debenture” means the Irish law governed debenture in the agreed form executed, or to be executed, by the Borrower granting the Lender fixed and floating charges over all of the assets of the Borrower.

Irish Pledge Agreement” means the Irish law governed pledge agreement in a substantially final form (as attached in the email dated 10 October 2024, at 18:31 BST, with the subject “RE: Fasanara | Mexedia DAC - Facility Agreement and Security Documents,” from Tsira Khuntsaria tsira.khuntsaria@fasanara.com to Paolo Bona pbona@mexedia.com, Daniel Gilcher dgilcher@mexedia.com, atrulli@mexedia.com, Filipe Alexandre filipe.alexandre@fasanara.com, and copied to Orlando Taddeo otaddeo@mexedia.com,  Daniele Guerini daniele.guerini@fasanara.com, Federica


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Stabilinifederica.stabilini@fasanara.com,MatteoAmaretti matteo.amaretti@fasanara.com,andMargherita  Mauro margherita.mauro@fasanara.com), to be executed by Mexedia Inc., granting the Lender a pledge over all shares of the Borrower. 

Lender” means:

(a)the Lender; and 

(b)any person which has become a Party as a “Lender” in accordance with Clause 18 (Changes to the Lender), 

which in each case has not ceased to be a Party as such in accordance with the terms of this Agreement.

Loan” means the loan made or to be made under the Facility or the principal amount outstanding for the time being of the loan.

Material Adverse Effect” means a material adverse effect on:

(a)the business, operations, property, condition (financial or otherwise) or prospects of any Obligor; or 

(b)the ability of the Borrower to perform its payment obligations under the Finance Documents; or 

(c)the validity or enforceability of the Finance Documents or the rights or remedies of the Lender under any of the Finance Documents; or 

(d)the validity or enforceability, or the effectiveness or ranking, of any Transaction Security granted or purporting to be granted pursuant to any of the Finance Documents. 

Month” means a period starting on one day in a calendar month and ending on the numerically corresponding day in the next calendar month, except that:

(a)(subject to paragraph (c) below) if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if there is one, or if there is not, on the immediately preceding Business Day; 

(b)if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar month; and 

(c)if an Interest Period begins on the last Business Day of a calendar month, that Interest Period shall end on the last Business Day in the calendar month in which that Interest Period is to end, 

provided that the above rules will only apply to the last Month of any period.


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Netting Letter” means the English law-governed netting letter, in the agreed form, executed or to be executed intel alia by the Parties hereto, setting off the payments described in such letter between the parties thereto.

New Lender” has the meaning given to that term in Clause 18 (Changes to the Lender).

Obligor” means each of the following entities:

(a)the Borrower; 

(b)Phonetime Inc, a company incorporated and registered in the State of Florida with company number 6639338, having its registered office at 1680 Michigan Ave suite 700, Miami Beach, FL 33139, USA; and 

(c)Matchcom Telecommunication Inc, a company incorporated and registered in the State of Florida with company number 830874509, having its registered office at 1680 Michigan Ave suite 700, Miami Beach, FL 33139, USA. 

Parent” means Mexedia SpA SB. “Party” means a party to this Agreement.

Payment Date” means the fifteenth (15th) calendar day of each calendar month.

"Receiver" means receiver or receiver and manager or administrative receiver of the whole or any part of the Charged Property.

Repayment Schedule” means, in relation to the Loan, the schedule detailing the interest payments and principal repayments as set out in Schedule 3 (Repayment Schedule).

Repeating Representations” means each of the representations set out in Clauses

13.1 (Status) to 13.6 (Governing law and enforcement), 13.9 (No default), paragraph

(b) of Clause 13.10 (No misleading information) and Clause 13.11 (Pari passu ranking).

Representative” means any delegate, agent, manager, administrator, nominee, attorney, trustee or custodian.

Secured Liabilities” means all present and future obligations and liabilities (whether actual or contingent and whether owed jointly or severally or in any other capacity whatsoever) of any Obligor to any Secured Party under each Finance Document.

Secured Party” means the Lender, any Receiver or Delegate.

"Security" means a mortgage, charge, pledge, lien or other security interest securing any obligation of any person or any other agreement or arrangement having a similar effect.

Subsidiary” means with respect to any person, another person directly or indirectly controlled by such person, provided that, as used in this definition, “control” means: (i)


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holding the majority of the voting rights or corporate capital of such person; or (ii) otherwise having the power to direct the management and policies of such person, and "controlled" has a commensurate meaning.

Tax” means any tax, levy, impost, duty or other charge or withholding of a similar nature (including any penalty or interest payable in connection with any failure to pay or any delay in paying any of the same).

Termination Date” means the earlier to occur of:

(a)the date on which the Lender exercises its rights under Clause 17.14 (a) (Acceleration); and 

(b)the date of 15 November 2029 (or, if such date is not a Business Day, the immediately succeeding Business Day), 

or such other date as may be agreed between the Lender and Borrower.

Transaction Security” means the Security created or expressed to be created in favour of the Lender pursuant to the Transaction Security Documents.

Transaction Security Documents” means:

(a)the Irish Debenture; 

(b)the Irish Pledge Agreement; 

(c)the US Pledge Agreements; 

(d)the US Security Agreement; and 

(e)any other document entered into by a member of the Group creating or expressed to create any Security over all or any part of its assets or granting or purporting to grant a guarantee, in each case, in respect of the obligations of any of the Borrower under any of the Finance Documents. 

Unpaid Sum” has the meaning given to that term in Clause 8.4 (Default interest).

US Pledge Agreements” means the pledge agreements in the agreed form executed, or to be executed, by, inter alia, Mexedia Inc granting the Lender a pledge over all of the shares of Phonetime Inc and Matchcom Telecommunication In.

US Security Agreement” means the security agreement in the agreed form executed, or to be executed, by, inter alia, Phonetime Inc and Matchcom Telecommunication Inc granting the Lender security over all of the assets of the respective entities.

VAT” means:

(a)any tax imposed in compliance with the Council Directive of 28 November 2006 on the common system of value added tax (EC Directive 2006/112); and 


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(b)any other tax of a similar nature, whether imposed in a member state of the European Union in substitution for, or levied in addition to, such tax referred to in paragraph (a) above, or imposed elsewhere. 

1.2Construction 

(a)Unless a contrary indication appears, any reference in this Agreement to: 

(i)the “Lender”, the “Borrower”, the “Parent” any “Obligor”, any “Secured Party” or any “Party” shall be construed so as to include its successors in title, permitted assigns and permitted transferees to, or of, its rights and/or obligations under the Finance Documents; 

(ii)a document in “agreed form” is a document which is previously agreed in writing by or on behalf of the Borrower and the Agent; 

(iii)“disposal” includes a sale, transfer, assignment, grant, lease, licence, declaration of trust or other disposal, whether voluntary or involuntary, and 'dispose' will be construed accordingly; 

(iv)assets” includes present and future properties, revenues and rights of every description; 

(v)a “Finance Document” or any other agreement or instrument is a reference to that Finance Document or other agreement or instrument as amended, novated, supplemented, extended or restated; 

(vi)guarantee” means any guarantee, letter of credit, bond, indemnity or similar assurance against loss, or any obligation, direct or indirect, actual or contingent, to purchase or assume any indebtedness of any person or to make an investment in or loan to any person or to purchase assets of any person where, in each case, such obligation is assumed in order to maintain or assist the ability of such person to meet its indebtedness; 

(vii)indebtedness” includes any obligation (whether incurred as principal or as surety) for the payment or repayment of money, whether present or future, actual or contingent; 

(viii)a “person” includes any individual, firm, company, corporation, government, state or agency of a state or any association, trust, joint venture, consortium, partnership or other entity (whether or not having separate legal personality); 

(ix)a “regulation” includes any regulation, rule, official directive, request or guideline (whether or not having the force of law) of any governmental, intergovernmental or supranational body, agency, department or of any regulatory, self-regulatory or other authority or organisation; 

(x)a provision of law is a reference to that provision as amended or re- enacted from time to time; and 


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(xi)a time of day is a reference to London time. 

(b)The determination of the extent to which a rate is “for a period equal in length” to an Interest Period shall disregard any inconsistency arising from the last day of that Interest Period being determined pursuant to the terms of this Agreement. 

(c)Section, Clause and Schedule headings are for ease of reference only. 

(d)Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same meaning in that Finance Document or notice as in this Agreement. 

(e)An Event of Default or a Default (other than an Event of Default) is “continuing” if it has not been remedied or waived. 

(f)“€”, EUR” and “Euro” denote the lawful currency of the European Union. 

1.3Third party rights 

A person who is not a Party has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce or to enjoy the benefit of any term of this Agreement and the consent of any person who is not a Party is not required to rescind or vary this Agreement at any time.


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2.THE FACILITY 

2.1The Facility 

SECTION 2 THE FACILITY

 

Subject to the terms of this Agreement, the Lender makes available to the Borrower a Euro credit facility in an aggregate amount equal to the Commitment.

2.2Lender’s rights and obligations 

Failure by the Lender to perform its obligations under the Finance Documents does not affect the obligations of any other Party under the Finance Documents. The Lender is not responsible for the obligations of any other Party under the Finance Documents.

3.PURPOSE 

3.1Purpose 

The Borrower shall apply all amounts borrowed by it under the Facility to repay the amounts owed by the Obligors under the deed of settlement, reassignment, release and termination entered into by the Obligors, the Lender and Lenderwize Limited on 23 September 2024.

3.2Monitoring 

The Lender is not bound to monitor or verify the application of any amount borrowed pursuant to this Agreement.

4.CONDITIONS PRECEDENT 

(a)The Borrower may not deliver the Drawdown Request unless the Lender has confirmed that all conditions precedent listed in Schedule 1 (Conditions precedent) have been provided in form and substance satisfactory to the Lender (and the Lender shall notify the Borrower promptly upon being so satisfied). 

(b)The Lender will only be obliged to comply with the Drawdown Request if on the date of the Drawdown Request and on the proposed Drawdown Date: 

(i)all conditions precedent listed in Schedule 1 (Conditions precedent) have been provided in form and substance satisfactory to the Lender; 

(ii)no Default is continuing or would result from the proposed Loan; and 

(iii)the Repeating Representations to be made by the Borrower to the best of its knowledge and in good faith are true, accurate and not misleading in all material respects. 


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5.DRAWDOWN 

SECTION 3 DRAWDOWN

 

5.1Delivery of a Drawdown Request 

(a)The Borrower may utilise the Facility by delivery to the Lender of a duly completed Drawdown Request on the proposed Drawdown Date. 

(b)The Borrower may only deliver one Drawdown Request. 

5.2Completion of a Drawdown Request 

The Drawdown Request is irrevocable and will not be regarded as having been duly completed unless:

(a)the proposed Drawdown Date is a Business Day; 

(b)the currency and amount of the Drawdown comply with Clause 5.3 (Currency and amount); and 

(c)the proposed Interest Period complies with Clause 8.3 (Interest Periods). 

5.3Currency and amount 

(a)The currency specified in the Drawdown Request must be EUR. 

(b)The amount of the proposed Loan must be an amount which is not more than the Commitment. 

5.4Lender’s participation 

If the conditions set out in this Agreement have been met, the Lender shall make the Loan available to the Borrower by the Drawdown Date.


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SECTION 4

REPAYMENT, PREPAYMENT AND CANCELLATION

6.REPAYMENT 

6.1Repayment of the Loan 

(a)The Borrower shall repay the Loan in instalments on each Payment Date in accordance with the Repayment Schedule. 

(b)The Borrower shall repay the Loan in full on or before the Termination Date. 

(c)The Borrower may not reborrow any part of Loan which is repaid. 

7.PREPAYMENT AND CANCELLATION 

7.1Illegality 

If, in any applicable jurisdiction, it becomes unlawful for the Lender to perform any of its obligations as contemplated by this Agreement or to fund or maintain its participation in the Loan:

(a)the Lender shall promptly notify the Borrower upon becoming aware of that event; 

(b)upon the Lender notifying the Borrower, the Commitment will be immediately cancelled; and 

(c)the Borrower shall repay the Loan made to it on the Payment Date occurring after the Lender has notified the Borrower or, if earlier, the date specified by the Lender in the notice delivered to the Borrower (being no earlier than the last day of any applicable grace period permitted by law). 

7.2Change of control 

(a)If any person or group of persons acting in concert gains control of any Obligor: 

(i)the Obligors shall promptly notify the Lender upon becoming aware of that event; 

(ii)the Lender shall not be obliged to fund the Drawdown; 

(iii)the Lender may, by not less than five (5) Business Days’ notice to the Borrower, cancel the Commitment and declare the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents immediately due and payable and the Loan, accrued interest and other amounts shall become immediately due and payable. 

(b)For the purpose of paragraph (a) above “acting in concert” means, a group of persons who, pursuant to an agreement or understanding (whether formal or informal), actively co-operate, through the acquisition of shares in the relevant Obligor to obtain or consolidate control of the relevant Obligor. 


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7.3Voluntary cancellation 

The Borrower may, if it gives the Lender not less than five (5) Business Days' (or such shorter period as the Lender may agree) prior notice and the Lender provides consent, cancel the whole or any part of the Facility.

7.4Voluntary prepayment of the Loan 

The Borrower may, if it gives the Lender not less than five (5) Business Days' (or such shorter period as the Lender may agree) prior notice, prepay the whole or any part of the Loan.

7.5Restrictions 

(a)Any notice of cancellation or prepayment given by any Party under this Clause 

7 shall be irrevocable and, unless a contrary indication appears in this Agreement, shall specify the date or dates upon which the relevant cancellation or prepayment is to be made and the amount of that cancellation or prepayment.

(b)Any prepayment under this Agreement shall be made together with accrued interest on the amount prepaid without premium or penalty. 

(c)The Borrower may not reborrow any part of the Loan which is prepaid. 

(d)The Borrower shall not repay or prepay all or any part of the Loan except at the times and in the manner expressly provided for in this Agreement. 

(e)No amount of the Commitment cancelled under this Agreement may be subsequently reinstated. 


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8.INTEREST 

8.1Calculation of interest 

SECTION 5 COSTS OF DRAWDOWN

 

The rate of interest on the Loans for any day during an Interest Period is set out in the Repayment Schedule.

8.2Payment of interest 

The Borrower shall pay accrued interest on the Loan in arrears on each Payment Date in accordance with the Repayment Schedule. Payment of accrued interest shall be made in accordance with Clause 20 (Payment Mechanics) and interest shall be paid to the Lender.

8.3Interest Periods 

(a)The first Interest Period shall commence on (and include) 1 December 2024 and end on (and include) 15 December 2024. 

(b)Subsequent Interest Periods shall commence on (and include) 16th calendar date of each month and end on (and include) on the 15th calendar date of each successive month. 

(c)The final Interest Period, being the Interest Period in which the Termination Date occurs, shall end on (and include) the Termination Date. 

8.4Default interest 

(a)If any sum due and payable by an Obligor under a Finance Document is not paid on its due date, or if any sum due and payable by an Obligor under any judgment or decree of any court in connection with any Finance Documents is not paid on the date of such judgment or decree, the period beginning on such due date or, as the case may be, the date of such judgment or decree and ending on the date upon which the obligation of the relevant Obligor to pay such sum (the balance thereof for the time being unpaid being herein referred to as an "Unpaid Sum") is discharged shall be divided into successive periods, each of which (other than the first) shall start on the last day of the preceding such period and the duration of each of which shall be selected by the person to whom such sum is payable (for the avoidance of doubt, no day shall be counted in more than one (1) period). 

(b)During each such period relating thereto an Unpaid Sum shall bear interest at the interest rate set out in Clause 8.1 (Calculation of interest) plus three per cent (3%) per annum. 

(c)Any interest which shall have accrued under this Clause 8.4 in respect of an Unpaid Sum shall be due and payable and shall be paid by the relevant Obligor at the end of the period by reference to which it is calculated or on such other 


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dates as the person to whom such sum is owed may specify in writing to the relevant Obligor.


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SECTION 6

ADDITIONAL PAYMENT OBLIGATIONS

9.TAX GROSS-UP AND INDEMNITIES 

9.1Definitions 

In this Agreement:

Tax Deduction” means a deduction or withholding for or on account of Tax from a payment under a Finance Document.

Unless a contrary indication appears, in this Clause 9 a reference to “determines” or “determined” means a determination made in the absolute discretion of the person making the determination.

9.2Tax gross-up 

(a)Each Obligor shall make all payments to be made by it without any Tax Deduction, unless a Tax Deduction is required by law. 

(b)Each Obligor shall promptly upon becoming aware that it must make a Tax Deduction (or that there is any change in the rate or the basis of a Tax Deduction) notify the Lender accordingly. Similarly, the Lender shall notify the Borrower on becoming so aware in respect of a payment payable to an Obligor. 

(c)If a Tax Deduction is required by law to be made by an Obligor, the amount of the payment due from the relevant Obligor shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due if no Tax Deduction had been required. 

9.3Stamp taxes 

The Obligors shall pay and, within three (3) Business Days of demand, indemnify the Lender against any cost, loss or liability that the Lender incurs in relation to all stamp duty, registration and other similar Taxes payable in respect of any Finance Document.

9.4VAT 

(a)All amounts expressed to be payable under a Finance Document by any Party to the Lender which (in whole or in part) constitute the consideration for any supply for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (b) below, if VAT is or becomes chargeable on any supply made by the Lender to any Party under a Finance Document and the Lender is required to account to the relevant tax authority for the VAT, that Party must pay to the Lender (in addition to and at the same time as paying any other consideration for such supply) an amount equal to the amount of the VAT (and the Lender must promptly provide an appropriate VAT invoice to that Party). 

(b)Where a Finance Document requires any Party to reimburse or indemnify the Lender for any cost or expense, that Party shall reimburse or indemnify (as the 


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case may be) the Lender for the full amount of such cost or expense, including such part thereof as represents VAT, save to the extent that the Lender reasonably determines that it is entitled to credit or repayment in respect of such VAT from the relevant tax authority.

10.OTHER INDEMNITIES 

10.1General indemnity 

(a)Each Obligor shall, within three (3) Business Days of demand, indemnify the Lender and every Receiver and Delegate against any cost, loss or liability incurred by the Lender, Receiver or Delegate as a result of: 

(i)the occurrence of any Event of Default; 

(ii)a failure by an Obligor to pay any amount due under a Finance Document on its due date; 

(iii)funding, or making arrangements to fund the Loan as requested by the Borrower in the Drawdown Request but not made by reason of the operation of any one or more of the provisions of this Agreement (other than by reason of default or negligence by the Lender alone); 

(iv)the Loan (or part of the Loan) not being prepaid in accordance with a notice of prepayment given by the Borrower; 

(v)the taking, holding, protection or enforcement of the Transaction Security; 

(vi)the exercise of any of the rights, powers, discretions, authorities and remedies vested in the Lender, Receiver or Delegate by the Finance Documents or by law; or 

(vii)acting as Lender, Receiver or Delegate under the Finance Documents or which otherwise relates to any of the Charged Property (other than, in each case, by reason of the Lender's, Receiver's or Delegate's gross negligence or wilful misconduct). 

(b)Every Receiver and Delegate may, in priority to any payment to the Secured Parties, indemnify itself out of the Charged Property in respect of, and pay and retain, all sums necessary to give effect to the indemnity in this Clause 10.1 and shall have a lien on the Transaction Security and the proceeds of the enforcement of the Transaction Security for all moneys payable to it. 

11.MITIGATION BY THE LENDER 

11.1Mitigation 

(a)The Lender shall, in consultation with the Borrower, take all reasonable steps to mitigate any circumstances which arise and which would result in any amount becoming payable under or pursuant to, or cancelled pursuant to, any of Clause 

7.1 (Illegality) or Clause 9 (Tax gross-up and indemnities) including (but not


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limited to) transferring its rights and obligations under the Finance Documents to another Affiliate.

(b)Paragraph (a) above does not in any way limit the obligations of the Obligors under the Finance Documents. 

11.2Limitation of liability 

(a)The Obligors shall promptly indemnify the Lender for all costs and expenses reasonably incurred by the Lender as a result of steps taken by it under Clause 

11.1 (Mitigation).

(b)The Lender is not obliged to take any steps under Clause 11.1 (Mitigation) if, in its opinion (acting reasonably), to do so might be prejudicial to it. 

12.COSTS AND EXPENSES 

12.1Transaction expenses 

Each Party shall pay its own costs and expenses (including legal fees) incurred by it in connection with the negotiation, preparation, printing and execution of the Finance Documents.

12.2Amendment costs 

If any Obligor requests an amendment, waiver or consent, the Obligors shall, within three (3) Business Days of demand, reimburse the Lender for the amount of all costs and expenses (including legal fees) reasonably incurred by the Lender in responding to, evaluating, negotiating or complying with that request or requirement.

12.3Enforcement costs 

The Obligors shall, within three (3) Business Days of demand, pay to the Lender the amount of all costs and expenses (including legal fees) incurred by the Lender in connection with the enforcement of, or the preservation of any rights under, any Finance Document and the Transaction Security and any proceedings instituted by or against that Secured Party as a consequence of taking or holding the Transaction Security or enforcing these rights.


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SECTION 8

REPRESENTATIONS, UNDERTAKINGS AND EVENTS OF DEFAULT

13.REPRESENTATIONS 

Each Obligor makes the representations and warranties set out in this Clause 13 to the Lender on the date of this Agreement.

13.1Status 

(a)Each Obligor is a corporation, duly incorporated and validly existing under the law of its jurisdiction of incorporation. 

(b)Each Obligor has the power to own its assets and carry on its business as it is being conducted. 

13.2Binding obligations 

(a)The obligations expressed to be assumed by each Obligor in each Finance Document are legal, valid, binding and enforceable obligations; and 

(b)without limiting the generality of paragraph (a) above, each Transaction Security Document to which an Obligor is a party creates the security interests which that Transaction Security Document purports to create and those security interests are valid and effective. 

13.3Non-conflict with other obligations 

The entry into and performance by any Obligor of, and the transactions contemplated by, the Finance Documents and the granting of the Transaction Security do not and will not conflict with:

(a)any law or regulation applicable to any Obligor (as applicable); 

(b)any Obligor’s (as applicable) constitutional documents; or 

(c)any agreement or instrument binding upon any Obligor or its material assets. 

13.4Power and authority 

It has the power to enter into, perform and deliver, and has taken all necessary action to authorise its entry into, performance and delivery of, the Finance Documents to which it is a party and the transactions contemplated by those Finance Documents.

13.5Validity and admissibility in evidence 

All Authorisations required or desirable:

(a)to enable any Obligor to lawfully enter into, exercise their rights, and comply with their obligations under the Finance Documents to which that Obligor is a party; 

(b)to make the Finance Documents to which it is a party admissible in evidence in 


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its jurisdiction of incorporation; and

(c)to create the Security constituted by the Transaction Security Documents to which any Obligor is party, following the completion of all actions set out in Clause 13.8 (No filing or stamp taxes) to ensure that such Security has the ranking specified therein, 

have been obtained or effected and are in full force and effect.

13.6Governing law and enforcement 

(a)The choice of English law as the governing law of this Agreement will be recognised and enforced in its jurisdiction of incorporation. 

(b)Any judgment obtained in England in relation to a Finance Document will be recognised and enforced in its jurisdiction of incorporation. 

13.7Deduction of Tax 

It is not required to make any Tax Deduction (as defined in Clause 9.1 (Definitions)) from any payment it may make under any Finance Document to the Lender.

13.8No filing or stamp taxes 

Under the law of its jurisdiction of incorporation it is not necessary that the Finance Documents be filed, recorded or enrolled with any court or other authority in that jurisdiction or that any stamp, registration or similar tax be paid on or in relation to the Finance Documents or the transactions contemplated by the Finance Documents except registration of particulars of the Transaction Security Documents at the relevant registries and payment of associated fees which registrations and fees will be made and paid promptly after the date of the relevant Transaction Security Document (and in any event within the prescribed time limit therefor).

13.9No default 

(a)No Event of Default is continuing or might reasonably be expected to result from the making of any Drawdown. 

(b)No other event or circumstance is outstanding which constitutes a default under any other agreement or instrument which is binding on any Obligor to which its assets are subject which might have a Material Adverse Effect. 

13.10No misleading information 

(a)Any factual information provided to the Lender by or on behalf of any member of the Group on or before the date of this Agreement and not superseded before that date is accurate and not misleading in any material respect and all projections provided to the Lender on or before the date of this Agreement have been prepared in good faith on the basis of assumptions which were reasonable at the time at which they were prepared and supplied. 

(b)All other written information provided by any member of the Group to the 


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Lender was true, complete and accurate in all material respects as at the date it was provided and is not misleading in any material respect.

13.11Ranking 

(a)Its payment obligations under the Finance Documents rank at least pari passu with the claims of all its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally. 

(b)The Transaction Security has or will have the ranking in priority which it is expressed to have in the Transaction Security Documents and it is not subject to any prior ranking or pari passu ranking Security. 

(c)The Transaction Security has or will have first ranking priority and it is not subject to any prior ranking or pari passu ranking Security. 

13.12No proceedings 

(a)No litigation, arbitration or administrative proceedings of or before any court, arbitral body or agency which, if adversely determined, might reasonably be expected to have a Material Adverse Effect has or have (to the best of its knowledge and belief) been started or threatened in writing against any Obligor. 

(b)No judgment or order of a court, arbitral body or agency which might reasonably be expected to have a Material Adverse Effect has (to the best of its knowledge and belief) been made against any Obligor. 

13.13Repetition 

The Repeating Representations are deemed to be made by the Obligors by reference to the facts and circumstances then existing on the date of the Drawdown Request, the Drawdown Date and the first day of each Interest Period.

14.INFORMATION UNDERTAKINGS 

The undertakings in this Clause 14 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

14.1Financial statements 

The Borrower shall supply to the Lender:

(a)as soon as the same become available, but in any event within 180 days after the end of each of its financial years, the Group’s audited consolidated financial statements for that financial year; and 

(b)as soon as the same become available, but in any event within 60 days after the end of each fiscal quarter, the Group’s unaudited consolidated financial statements for that fiscal quarter. 


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14.2Requirements as to financial statements 

(a)Each set of financial statements delivered by the Borrower pursuant to Clause 

14.1 (Financial statements) shall be deemed to be certified by a director of the relevant company as fairly presenting its financial condition as at the date as at which those financial statements were drawn up.

(b)The Borrower shall procure that each set of financial statements delivered pursuant to Clause 14.1 (Financial statements) is prepared using GAAP. 

14.3Information: miscellaneous 

The Obligors shall supply to the Lender:

(a)all documents dispatched by (x) any Obligor to its shareholders (or any class of them) or (y) any Obligor to its creditors generally, at the same time as they are dispatched; 

(b)promptly upon becoming aware of them, the details of any litigation, arbitration or administrative proceedings which are current, threatened or pending against any member of the Group, and which might, if adversely determined, have a Material Adverse Effect; 

(c)promptly upon becoming aware of them, the details of any judgment or order of a court, arbitral body or agency which is made against any member of the Group, and which might have a Material Adverse Effect; and 

(d)promptly, such information as the Lender may reasonably require about the Charged Property and compliance of an Obligor with the terms of any Transaction Security Documents; and 

(e)promptly, such further information regarding the financial condition, business and operations of any member of the Group as the Lender may reasonably request. 

14.4Notification of default 

(a)The Borrower shall notify the Lender of any Default (and the steps, if any, being taken to remedy it) promptly upon becoming aware of its occurrence. 

(b)Promptly upon a request by the Lender, the Borrower shall supply to the Lender a certificate signed by two of its directors or senior officers on its behalf certifying that no Default is continuing (or if a Default is continuing, specifying the Default and the steps, if any, being taken to remedy it). 

14.5“Know your customer” checks 

(a)If: 

(i)the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation made after the date of this Agreement; 


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(ii)any change in the status of an Obligor after the date of this Agreement; or 

(iii)a proposed assignment or transfer by the Lender of any of its rights and obligations under this Agreement to a party that is not the Lender prior to such assignment or transfer, 

obliges the Lender (or, in the case of paragraph (iii) above, any prospective new Lender) to comply with “know your customer” or similar identification procedures in circumstances where the necessary information is not already available to it, the Obligors shall promptly upon the request of the Lender supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Lender (for itself or, in the case of the event described in paragraph (iii) above, on behalf of any prospective new Lender) in order for the Lender or, in the case of the event described in paragraph (iii) above, any prospective new Lender to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents.

(b)The Lender shall promptly upon the request of the Borrower supply, or procure the supply of, such documentation and other evidence as is reasonably requested by the Borrower (for itself) in order for the Borrower to carry out and be satisfied it has complied with all necessary “know your customer” or other similar checks under all applicable laws and regulations pursuant to the transactions contemplated in the Finance Documents. 

15.GENERAL UNDERTAKINGS 

The undertakings in this Clause 15 remain in force from the date of this Agreement for so long as any amount is outstanding under the Finance Documents or any Commitment is in force.

15.1Authorisations 

Each Obligor shall promptly:

(a)obtain, comply with and do all that is necessary to maintain in full force and effect; and 

(b)supply certified copies to the Lender of, 

any Authorisation required under any law or regulation of its jurisdiction of incorporation to enable it to perform its obligations under the Finance Documents and to ensure the legality, validity, enforceability or admissibility in evidence in its jurisdiction of incorporation of any Finance Document.

15.2Compliance with laws 

Each Obligor shall comply in all respects with all laws to which it may be subject, if failure so to comply would materially impair its ability to perform its obligations under the Finance Documents.


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15.3Negative pledge 

No Obligor shall create or permit to subsist any Security over any of its assets.

15.4Disposals 

(a)Without prior written consent of the Lender, no Obligor shall enter into a single transaction or a series of transactions (whether related or not) and whether voluntary or involuntary to sell, lease, transfer or otherwise dispose of any asset. 

(b)Paragraph (a) above does not apply to any sale, lease, transfer or other disposal of assets in exchange for other assets comparable or superior as to type, value and quality (other than an exchange of a non-cash asset for cash). 

15.5Merger 

No Obligor shall enter into any amalgamation, demerger, merger or corporate reconstruction without the prior written consent of the Lender.

15.6Change of business 

Each Obligor shall procure that no substantial change is made to the general nature of the business of any Obligor from that carried on at the date of this Agreement without the prior written consent of the Lender.

15.6Perfection of the Transaction Security 

Each Obligor shall promptly do all such acts or execute (or procure the execution by debtors of) all such documents (including notices of assignment and/or pledge, acknowledgements of assignment and/or pledge, assignments, transfers, mortgages, pledges charges, notices and instructions) as the Lender may reasonably specify (and in such form as the Lender may reasonably require in favour of the Lender or their nominee(s)):

(a)to perfect the Security created or intended to be created under or evidenced by the Transaction Security Documents (which may include the execution of a mortgage, pledge, charge, assignment or other Security over all or any of the assets which are, or are intended to be, the subject of the Transaction Security) or for the exercise of any rights, powers and remedies of the Lender provided by or pursuant to the Finance Documents or by law; 

(b)to confer on the Lender Security over any property and assets of the relevant Obligor located in any jurisdiction equivalent or similar to the Security intended to be conferred by or pursuant to the Transaction Security Documents; and/or 

(c)after the Transaction Security has become enforceable, to facilitate the realisation of the assets which are, or are intended to be, the subject of the Transaction Security. 

15.7Liquidation 

Without a prior written consent of the Lender, no Obligor shall commence any


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Insolvency Proceedings, except where it is mandatory to comply with the law or strictly necessary to preserve the operations of the Borrower, in which case the Obligor shall notify the Lender immediately upon becoming aware of the requirement to commence Insolvency Proceedings.

15.8Amendments to the Constitution Documents 

No Obligor shall amend, alter, or repeal any provision of its constitutional documents, certificate of incorporation, bylaws, or any similar document in a manner that adversely affects this Facility.

15.9Transaction with an Affiliate 

Without the prior written consent of the Lender, no Obligor shall enter into any single transaction or series of transactions (whether related or not) with any of its Affiliates having a value of more than EUR 500,000.

15.10Future Indebtedness 

No Obligor shall incur any further Financial Indebtedness.

15.11Bank accounts 

No later than thirty (30) calendars days following the date hereof, the Obligors shall ensure that the Lender or an Affiliate of the Lender (at the option of the Lender) has been granted full access and entitlements of initiator/approver in relation to the bank accounts of the Parent and Intermatica SpA and that such access and entitlements are not revoked or altered in any manner prior to the Termination Date.

15.12Share Pledge 

The Borrower shall ensure that, no later than thirty (30) calendar days from the date hereof, Mexedia Inc., as the parent of the Borrower, (x) executes and delivers to the Lender the Irish Pledge Agreement, along with the necessary authorizations in a form satisfactory to the Lender and all ancillary documents as outlined in the schedules to the Irish Pledge Agreement, and (y) completes any necessary filings with the applicable registries.

16.GUARANTEE 

16.1Guarantee 

Each Obligor, jointly and severally, irrevocably and unconditionally:

(a)undertakes with and guarantees to the Secured Parties that, whenever the Borrower does not pay any amount when due under or in connection with the Finance Documents, it shall immediately on demand pay that amount as if it was the principal obligor; and 

(b)agrees with the Secured Parties that if any obligation guaranteed by it is or becomes unenforceable, invalid or illegal, it will, as an independent and primary obligation, indemnify the Secured Parties immediately on demand against any 


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cost, loss or liability it incurs as a result of the Borrower not paying any amount which would, but for such unenforceability, invalidity or illegality, have been payable by it under the Finance Documents on the date when it would have been due. The amount payable by the Obligors under this indemnity will not exceed the amount the Borrower would have had to pay if the amount claimed had been recoverable on the basis of a guarantee.

16.2Immediate recourse 

Each Obligor waives any right it may have of first requiring the Secured Parties (or any trustee or agent on its behalf) to proceed against or enforce any other rights or security or claim payment from any person before claiming from it under this Clause 16. This waiver applies irrespective of any law or any provision of a Finance Document to the contrary.

16.3Deferral of rights 

(a)Without prejudice to any obligations assumed by the Obligors under or in connection with the Finance Documents until all amounts which may be or become payable by the Obligors under or in connection with the Finance Documents have been irrevocably paid in full and unless the Lender otherwise directs, no Obligor shall exercise any rights which it may have by reason of performance by it of its obligations under the Finance Documents or by reason of any amount being payable, or liability arising, under this Clause 16. 

(b)If any Obligor receives any benefit, payment or distribution in relation to such rights it shall hold that benefit, payment or distribution to the extent necessary to enable all amounts which may be or become payable to the Secured Parties by the Obligors under or in connection with the Finance Documents to be repaid in full on trust for the Secured Parties and shall promptly pay or transfer the same to the Secured Parties. 

16.4Continuing guarantee 

This guarantee is a continuing guarantee and will extend to the ultimate balance of sums payable by the Borrower under the Finance Documents regardless of any intermediate payment or discharge in whole or in part.

16.5Reinstatement 

If any discharge, release or arrangement (whether in respect of the obligations of the Borrower or any security for those obligations or otherwise) is made by the Obligors in whole or in part on the basis of any payment, security or other disposition which is avoided or must be restored in insolvency, liquidation, administration or otherwise, without limitation, then the liability of the Obligors under this Clause 16 will continue or be reinstated as if the discharge, release or arrangement had not occurred.

16.6Waiver of defences 

The obligations of each Obligor under this Clause 16 will not be affected by an act, omission, matter or thing which, but for this Clause 16, would reduce, release or prejudice any of its obligations under this Clause 16 (without limitation and whether or


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not known to it or the Secured Parties).

16.7Guarantor intent 

Without prejudice to the generality of Clause 16.6 (Waiver of defences), each Obligor expressly confirms that it intends that this guarantee shall extend from time to time to any (however fundamental and of whatsoever nature and whether or not more onerous) variation, increase, extension or addition of or to any of the terms of the Finance Documents and/or any amount made available under the Finance Documents.

17.EVENTS OF DEFAULT 

Each of the events or circumstances set out in Clause 15.11 is an Event of Default (save for Clause 17.14 (Acceleration)).

17.1Non-payment 

An Obligor does not pay on the due date any amount payable pursuant to a Finance Document at the place and in the currency in which it is expressed to be payable unless its failure to pay is caused by administrative or technical error and payment is made within three (3) Business Days of its due date.

17.2Other obligations 

(a)An Obligor does not comply with any provision of the Finance Documents (other than those referred to in Clause 17.1 (Non-payment)

(b)No Event of Default under paragraph (a) above will occur if the failure to comply is capable of remedy and is remedied within ten (10) Business Days of the earlier of (A) the Lender giving notice to the relevant Obligor and (B) the relevant Obligor becoming aware of the failure to comply. 

17.3Misrepresentation 

Any representation or statement made or deemed to be made by an Obligor in the Finance Documents or any other document delivered by or on behalf of any Obligor under or in connection with any Finance Document is or proves to have been incorrect or misleading in any material respect when made or deemed to be made.

17.4Cross default 

(a)Any Financial Indebtedness of any member of the Group is not paid (or, in relation to convertible loans, converted) when due nor within any originally applicable grace period. 

(b)Any Financial Indebtedness of any member of the Group is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default (however described). 

(c)Any commitment for any Financial Indebtedness of any member of the Group is cancelled or suspended by a creditor of that member of the Group as a result of an event of default (however described). 


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(d)Any creditor of any member of the Group becomes entitled to declare any Financial Indebtedness of that member of the Group (as applicable) due and payable prior to its specified maturity as a result of an event of default (however described). 

17.5Insolvency 

(a)Any member of the Group: 

(i)is unable or admits inability to pay its debts as they fall due; 

(ii)suspends making payments on any of its debts; or 

(iii)by reason of actual or anticipated financial difficulties, commences negotiations with one or more of its creditors (excluding the Lender) with a view to rescheduling any of its indebtedness. 

(b)The value of the assets of any member of the Group becomes less than its liabilities (taking into account contingent and prospective liabilities) after the date hereof. 

(c)A moratorium is declared in respect of any indebtedness of any member of the Group. 

17.6Insolvency proceedings 

Any corporate action, legal proceedings or other procedure or step is taken in relation to:

(a)the suspension of payments, a moratorium of any indebtedness, winding-up, dissolution, administration or reorganisation (by way of voluntary arrangement, scheme of arrangement or otherwise) of any member of the Group; 

(b)a composition, compromise, assignment or arrangement with any creditor of any member of the Group; 

(c)the appointment of a liquidator (other than in respect of a solvent liquidation), receiver, administrative receiver, administrator, compulsory manager or other similar officer in respect of any member of the Group and/or any of their assets; or 

(d)an enforcement of any Security over any assets of any member of the Group, or any analogous procedure or step is taken in any jurisdiction. 

This Clause 17.6 shall not apply to any winding-up petition which is frivolous or vexatious and is discharged, stayed or dismissed within fourteen (14) days of commencement.


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17.7Creditors' process 

Any expropriation, attachment, sequestration, distress or execution affects any asset or assets of any member of the Group and is not discharged within fourteen (14) days.

17.8Unlawfulness 

It is or becomes unlawful for an Obligor to perform any of its obligations under the Finance Documents or any Transaction Security created or expressed to be created or evidenced by the Transaction Security Documents ceases to be effective.

17.9Repudiation 

Any Obligor repudiates a Finance Document or any Transaction Security or evidences an intention to repudiate a Finance Document.

17.10Material Adverse Effect 

The occurrence of any event that results, or is reasonably expected to result, in a Material Adverse Effect.

17.11Change of business 

A substantial change is made to the general nature of the business of an Obligor from that carried on by the relevant Obligor at the date of this Agreement.

17.12Change of ownership 

An Obligor ceases to be a wholly-owned Subsidiary of the Parent.

17.13Bank accounts 

After the date falling thirty (30) calendars days following the date hereof, the Lender or an Affiliate of the Lender (at the option of the Lender) has not been granted full access and entitlements of initiator/approver in relation to the bank accounts of the Parent and Intermatica SpA. or such access or entitlements have been revoked or altered in any manner.

17.14Acceleration 

On and at any time after the occurrence of an Event of Default which is continuing the Lender, by notice to the Borrower:

(a)cancel the Commitment whereupon the Commitment shall immediately be cancelled and the Facility shall immediately cease to be available for further utilisation; 

(b)declare that all or part of the Loan, together with accrued interest, and all other amounts accrued or outstanding under the Finance Documents be immediately due and payable, whereupon they shall become immediately due and payable; and/or 


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(c)declare that all or part of the Loan be payable on demand, whereupon they shall immediately become payable on demand by the Lender. 


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SECTION 9 CHANGES TO PARTIES

18.CHANGES TO THE LENDER 

18.1Assignments and transfers by the Lender 

Subject to this Clause 18, the Lender may:

(a)assign any of its rights; or 

(b)transfer by novation any of its rights and obligations, 

to another person which is regularly engaged in or established for the purpose of making, purchasing or investing in loans, securities or other financial assets.

18.2Obligor consent 

The consent of the Obligors is not required for an assignment or transfer by the Lender.

19.CHANGES TO THE BORROWER 

No Obligor may assign any of its rights or transfer any of its rights or obligations under the Finance Documents.


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SECTION 10 ADMINISTRATION

20.PAYMENT MECHANICS 

20.1Payments 

(a)On each date on which an Obligor or the Lender is required to make a payment under a Finance Document, the relevant Obligor or the Lender shall make the same available to the Lender (if payment is to be made by an Obligor) or to the relevant Obligor (if payment is to be made by the Lender) for value on the due date at the time and in such funds specified by that Party. 

(b)Payment shall be made to such account and with such bank as the relevant Party specifies. 

20.2Partial payments 

(a)If the Lender receives a payment that is insufficient to discharge all the amounts then due and payable by the Obligors under the Finance Documents, the Lender shall apply that payment towards the obligations of the Obligors under the Finance Documents in the following order: 

(i)firstly, in or towards payment pro rata of any accrued interest, fee or commission due but unpaid under this Agreement; 

(ii)secondly, in or towards payment pro rata of any principal due but unpaid under this Agreement; and 

(iii)thirdly, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

(b)Paragraphs (a) and above will override any appropriation made by the Obligors. 

20.3No set-off by the Obligors 

All payments to be made by the Obligors under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim.

20.4Business Days 

(a)Any payment under the Finance Documents which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same calendar month (if there is one) or the preceding Business Day (if there is not). 

(b)During any extension of the due date for payment of any principal or Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate payable on the original due date. 


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20.5Currency of account 

Euro is the currency of account and payment for any sum due from the Obligors under any Finance Document.

21.SET-OFF 

The Lender may set off any matured obligation due from the Obligors under the Finance Documents (to the extent beneficially owned by the Lender) against any matured obligation owed by the Lender to the Obligors, regardless of the place of payment, booking branch or currency of either obligation. If the obligations are in different currencies, the Lender may convert either obligation at a market rate of exchange in its usual course of business for the purpose of the set-off.

22.NOTICES 

22.1Communications in writing 

Any communication to be made under or in connection with the Finance Documents shall be made in English and in writing and, unless otherwise stated, may be made by email or letter.

22.2Addresses 

The address and email address of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is:

(a)in the case of the Matchcom Telecommunication Inc: 

Address: 1680 Michigan Ave suite 700, Miami Beach, FL 33139, USA

Email:dcontreras@mexedia.com,otaddeo@mexedia.com, dgilcher@mexedia.com, pbona@mexedia.com 

(b)in the case of the Phonetime Inc: 

Address: 1680 Michigan Ave suite 700, Miami Beach, FL 33139, USA

Email:dcontreras@mexedia.com, otaddeo@mexedia.com, dgilcher@mexedia.com, pbona@mexedia.com 

(c)in the case of the Borrower: 

Address: 17 Clanwilliam Square, Grand Canal Quay, Dublin 2, Dublin, Republic of Ireland

Email:dcontreras@mexedia.com,fgermondani@mexedia.com, otaddeo@mexedia.com, dgilcher@mexedia.com, pbona@mexedia.com 

(d)in the case of the Lender: 

Address: 17, Boulevard F.W. Raiffeisen, L - 2411 Luxembourg, Grand Duchy of Luxembourg


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Email: investments.credit@fasanara.com

or any substitute address or email address as the Party may notify to the other Party by not less than three (3) Business Days' notice.

22.3Delivery 

(a)Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective: 

(i)if by way of email, upon successful transmission; or 

(ii)if by way of letter, when it has been left at the relevant address or three 

(3) Business Days after being deposited in the post postage prepaid in an envelope addressed to it at that address.

(b)Any communication or document which becomes effective, in accordance with paragraphs (a) above, after 5:00 p.m. in the place of receipt shall be deemed only to become effective on the following day. 

22.4Electronic communication 

(a)Any communication or document to be made or delivered by one Party to another under or in connection with the Finance Documents may be made or delivered by electronic mail or other electronic means (including, without limitation, by way of posting to a secure website) if the Parties: 

(i)notify each other in writing of their electronic mail address and/or any other information required to enable the transmission of information by that means; and 

(ii)notify each other of any change to their address or any other such information supplied by them by not less than five (5) Business Days' notice. 

(b)Any such electronic communication or delivery as specified in paragraph (a) above to be made between the Obligors and the Lender may only be made in that way to the extent the Parties agree that, unless and until notified to the contrary, this is to be an accepted form of communication or delivery. 

(c)Any such electronic communication or document as specified in paragraph (a) above made or delivered by one Party to another will be effective only when actually received (or made available) in readable form. 

(d)Any electronic communication or document which becomes effective, in accordance with paragraph (b) above, after 5:00 p.m. in the place in which the Party to whom the relevant communication or document is sent or made available has its address for the purpose of this Agreement shall be deemed only to become effective on the following day. 

(e)Any reference in a Finance Document to a communication being sent or received or a document being delivered shall be construed to include that 


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communication or document being made available in accordance with this Clause 22.4.

22.5English language 

(a)Any notice given under or in connection with any Finance Document must be in English. 

(b)All other documents provided under or in connection with any Finance Document must be: 

(i)in English; or 

(ii)if not in English, and if so required by the Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless the document is a constitutional, statutory or other official document. 

23.CALCULATIONS AND CERTIFICATES 

23.1Accounts 

In any litigation or arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by the Lender are prima facie evidence of the matters to which they relate.

23.2Certificates and determinations 

Any certification or determination by the Lender of a rate or amount under any Finance Document is, in the absence of manifest error, conclusive evidence of the matters to which it relates.

23.3Day count convention 

(a)Any interest, commission or fee accruing under a Finance Document will accrue from day to day and the amount of any such interest, commission or fee is calculated on the basis of the actual number of days elapsed and a year of 365 days. 

(b)The aggregate amount of any accrued interest, commission or fee which is, or becomes, payable by the Obligors under a Finance Document shall be rounded to 2 decimal places. 

24.PARTIAL INVALIDITY 

If, at any time, any provision of a Finance Document is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired.


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25.REMEDIES AND WAIVERS 

No failure to exercise, nor any delay in exercising, on the part of any Party, any right or remedy under a Finance Document shall operate as a waiver of any such right or remedy or constitute an election to affirm any of the Finance Documents. No election to affirm any Finance Document on the part of any Party shall be effective unless it is in writing. No single or partial exercise of any right or remedy shall prevent any further or other exercise or the exercise of any other right or remedy. The rights and remedies provided in each Finance Document are cumulative and not exclusive of any rights or remedies provided by law.

26.NO PARTNERSHIP 

Except where any Finance Document specifically provides otherwise, no provision of any Finance Document creates a partnership between any of the parties or makes a Party the agent of another Party for any purpose. Except where any Finance Document provides otherwise, a Party has no authority or power to bind, to contract in the name of, or to create a liability for another Party in any way or for any purpose.

27.AMENDMENTS AND WAIVERS 

Any term of the Finance Documents may be amended or waived only with the consent of the Lender and the Obligors.

28.CONFIDENTIAL INFORMATION 

28.1Confidentiality 

Each Party agrees to keep all Confidential Information confidential and not to disclose it to anyone, save to the extent permitted by Clause 28.2 (Disclosure of Confidential Information), and to ensure that all Confidential Information is protected with security measures and a degree of care that would apply to its own confidential information.

28.2Disclosure of Confidential Information 

Each Party may disclose:

(a)to any of its Affiliates and any of its or their officers, directors, employees, contractors, professional advisers, auditors, partners and Representatives such Confidential Information as the Party shall consider appropriate if any person to whom the Confidential Information is to be given pursuant to this paragraph 

(a) is informed in writing of its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no such requirement to so inform if the recipient is subject to professional obligations to maintain the confidentiality of the information or is otherwise bound by requirements of confidentiality in relation to the Confidential Information;

(b)to any person: 


- 36 -



(i)to (or through) whom it assigns or transfers (or may potentially assign or transfer) all or any of its rights and/or obligations under one or more Finance Documents; 

(ii)with (or through) whom it enters into (or may potentially enter into), whether directly or indirectly, any sub-participation in relation to, or any other transaction under which payments are to be made or may be made by reference to, one or more Finance Documents and, in each case, to any of that person’s Affiliates, Representatives and professional advisers; 

(iii)appointed by a Party or by a person to whom paragraph (b)(i) or (ii) above applies to receive communications, notices, information or documents delivered pursuant to the Finance Documents on its behalf; 

(iv)who is a funding partner of the Lender or who invests in or otherwise finances (or may potentially invest in or otherwise finance), directly or indirectly, any transaction referred to in paragraph (b)(i) or (b)(ii) above; 

(v)to whom information is required or requested to be disclosed by any court of competent jurisdiction or any governmental, banking, taxation or other regulatory authority or similar body, the rules of any relevant stock exchange or pursuant to any applicable law or regulation; 

(vi)to whom information is required to be disclosed in connection with, and for the purposes of, any litigation, arbitration, administrative or other investigations, proceedings or disputes; 

(vii)who is a Party; or 

(viii)with the consent of the other Party; 

in each case, such Confidential Information as each Party shall consider appropriate if:

(A)in relation to paragraphs (b)(i), (b)(ii) and (b)(iii) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking except that there shall be no requirement for a Confidentiality Undertaking if the recipient is a professional adviser and is subject to professional obligations to maintain the confidentiality of the Confidential Information; 

(B)in relation to paragraph (b)(iv) above, the person to whom the Confidential Information is to be given has entered into a Confidentiality Undertaking or is otherwise bound by requirements of confidentiality in relation to the Confidential Information they receive and is informed that some or all of such Confidential Information may be price-sensitive information; 

(C)in relation to paragraphs (b)(v) and (b)(vi) above, the person to whom the Confidential Information is to be given is informed of 


- 37 -



its confidential nature and that some or all of such Confidential Information may be price-sensitive information except that there shall be no requirement to so inform if, in the opinion of the Party, it is not practicable so to do in the circumstances; and

(c)to any person appointed by a Party or by a person to whom paragraph (b)(i) or (b)(ii) above applies to provide administration or settlement services in respect of one or more of the Finance Documents including without limitation, in relation to the trading of participations in respect of the Finance Documents, such Confidential Information as may be required to be disclosed to enable such service provider to provide any of the services referred to in this paragraph (c) if the service provider to whom the Confidential Information is to be given has entered into a confidentiality agreement substantially in the form of the LMA Master Confidentiality Undertaking for Use With Administration/Settlement Service Providers or such other form of confidentiality undertaking agreed between the Obligors and the Lender. 

28.3Entire agreement 

This Clause 28 constitutes the entire agreement between the Parties in relation to the obligations of the Parties under the Finance Documents regarding Confidential Information and supersedes any previous agreement, whether express or implied, regarding Confidential Information.

28.4Notification of disclosure 

The Lender agrees (to the extent permitted by law and regulation) to inform the Obligors:

(a)of the circumstances of any disclosure of Confidential Information made pursuant to paragraph (b)(v) of Clause 28.2 (Disclosure of Confidential Information) except where such disclosure is made to any of the persons referred to in that paragraph during the ordinary course of its supervisory or regulatory function; and 

(b)upon becoming aware that Confidential Information has been disclosed in breach of this Clause 28. 

28.5Continuing obligations 

The obligations in this Clause 28 are continuing and, in particular, shall survive and remain binding on each Party for a period of one (1) year following the date on which all amounts payable by the Obligors under or in connection with this Agreement have been paid in full and the Commitment has been cancelled or otherwise ceases to be available.

29.LIMITED RECOURSE AND NON-PETITION 

29.1Non-petition 

Neither the Obligors, nor any security trustee on its behalf, shall be entitled to institute against, or join with any other person in instituting against, the Lender any bankruptcy,


- 38 -



reorganization, arrangement or liquidation proceedings or other proceedings under any bankruptcy or similar law prior to the date which is one (1) year and one (1) day after the date on which the Lender’s commitments under this Agreement has been cancelled or expired.

29.2Limited recourse 

Each Obligor acknowledges that:

(c)no payment of any amount whatsoever shall be made by the Lender or any of its agents on its behalf except to the extent funds are available therefore from the assets of the Lender and no recourse shall be had for the payment of any amount owing hereunder, whether for the payment of any fee, indemnity or other amount hereunder or any other obligation or claim arising out of or based upon this Agreement, against the Lender to the extent its assets have been exhausted following which all obligations of the Lender shall be extinguished; 

(d)no recourse (whether by institution or enforcement of any legal proceeding or assessment or otherwise) in respect of any breaches of any duty, obligation or undertaking of the Lender arising under or in connection with this Agreement (as from time to time supplemented or modified in accordance with the provisions herein contained) by virtue of any law, statute or otherwise shall be had against any shareholder, officer, manager or corporate services provider of the Lender in their capacity as such, save in the case of their gross negligence, wilful default or actual fraud, and any and all personal liability of every such shareholder, officer, manager or corporate services provider in their capacity as such for any breaches by the Lender of any such duty, obligation or undertaking shall be waived and excluded to the extent permitted by law; and 

(e)no recourse (whether by institution or enforcement of any legal proceeding or assessment or otherwise) in respect of any breaches of any duty, obligation or undertaking of the Lender arising under or in connection with this Agreement (as from time to time supplemented or modified in accordance with the provisions herein contained) by virtue of any law, statute or otherwise shall be had against any shareholder, officer, manager or corporate services provider of the Lender in their capacity as such, save in the case of their gross negligence, wilful default or actual fraud, and any and all personal liability of every such shareholder, officer, manager or corporate services provider in their capacity as such for any breaches by the Lender of any such duty, obligation or undertaking shall be waived and excluded to the extent permitted by law. 

29.3Corporate Obligations 

No recourse under any obligation, covenant, or agreement of any party contained in this Agreement will be had against any shareholder, member, employee, officer, agent or director of the relevant party as such, by the enforcement of any assessment or by any proceeding, by virtue of any statute or otherwise; it being expressly agreed and understood that this Agreement represents a corporate or limited liability obligation of the relevant party and no personal liability will attach to or be incurred by the shareholders, members, employees, officers, agents or directors of the relevant party as such, or any of them, under or by reason of any of the obligations, covenants or


- 39 -



agreements of such party contained in this Agreement, or implied therefrom, and that any and all personal liability for breaches by such party of any of such obligations, covenants or agreements, either at law or by statute or constitution, of every such shareholder, member, employee, officer, agent or director is expressly waived by the other party as a condition of and in consideration for the execution of this Agreement.

29.4Compartment / Series 

Each Obligor expressly acknowledges and accepts that (i) each of the Company and its Compartments is subject to the Securitisation Act 2004, and (ii) the Company is acting in respect of Compartment H. Furthermore, each Obligor acknowledges and agrees that in respect of any claim made against the Lender it ultimately has recourse only to the assets of Compartment H. Where the assets of Compartment H are insufficient, the Lender shall only be obliged for an amount equal to the available assets of Compartment H (if any). In any event, each Obligor will not have recourse to the assets of the other Compartments created by the Company other than the assets of Compartment H. Each Obligor agrees not to attach or otherwise seize the assets of any other Compartments created by the Company other than in relation to the assets of Compartment H. Furthermore, each Obligor agrees that it has no recourse to the assets allocated to other Compartments created by the Company or the Lender (as the case may be) or any other assets of the Company (including its share capital).

29.5Continuing obligations 

The obligations in this Clause 29 are continuing and, in particular, shall survive and remain binding on each Party.

30.COUNTERPARTS 

Each Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document.


- 40 -



SECTION 11

GOVERNING LAW AND ENFORCEMENT

31.GOVERNING LAW 

This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.

32.ENFORCEMENT 

(a)The courts of England have exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute relating to the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a “Dispute”). 

(b)The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Party will argue to the contrary. 

(c)Notwithstanding paragraphs (a) and (b) above, the Lender shall not be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Lender may take concurrent proceedings in any number of jurisdictions. 

This Agreement has been entered into on the date stated at the beginning of this Agreement.


- 41 -



1.Obligors 

SCHEDULE 1 CONDITIONS PRECEDENT

 

(a)A copy of the constitutional documents of each Obligor. 

(b)A copy of a resolution of the board of directors of each Obligor: 

(i)approving the terms of, and the transactions contemplated by, the Finance Documents to which it is a party and resolving that it execute the Finance Documents to which it is a party; 

(ii)authorising a specified person or persons to execute the Finance Documents to which it is a party on its behalf; and 

(iii)authorising a specified person or persons, on its behalf, to sign and/or despatch all documents and notices (including, if relevant, any Drawdown Request) to be signed and/or despatched by it under or in connection with the Finance Documents to which it is a party. 

(c)A specimen of the signature of each person authorised by the resolutions referred to in paragraph (b) and (c) above. 

(d)A certificate of the Borrower confirming that borrowing or guaranteeing, as appropriate, the Commitment would not cause any borrowing, guaranteeing or similar limit binding on it to be exceeded. 

(e)A certificate of an authorised signatory of each Obligor certifying that each copy document relating to it specified in this Schedule 2 is correct, complete and in full force and effect as at a date no earlier than the date of this Agreement. 

2.Finance Documents 

(a)This Agreement, duly executed by the parties hereto. 

(b)The Transaction Security Documents, in each case duly executed by the parties thereto. 

(c)A copy of all notices required to be sent under the Transaction Security Documents executed by each relevant party. 

(d)Evidence that all filings required to be made under the Transaction Security Documents have been made. 

(e)All share certificates, transfers and stock transfer forms relating to the shares in each Obligor duly executed by the Parent in blank. 

3.Other documents and evidence 

(a)The Netting Letter duly executed by Lenderwize Limited and the parties hereto. 


- 42 -



(b)A copy of any other Authorisation or other document, opinion or assurance which the Lender considers to be necessary or desirable (if it has notified the Obligors accordingly) in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document. 


- 43 -



From:MEXEDIA DAC 

SCHEDULE 2 DRAWDOWN REQUEST

 

To:FASANARA SECURITISATION S.A., ACTING FOR AND ON BEHALF OF ITS COMPARTMENT H 

 

 

Dated: Dear Sirs

 

 

 

 

Mexedia DAC – Facility Agreement dated 31 October 2024 (the “Agreement”)

 

1.We refer to the Agreement. This is the Drawdown Request. Terms defined in the Agreement have the same meaning in this Drawdown Request unless given a different meaning in this Drawdown Request. 

2.We wish to borrow the Loan on the following terms: 

Proposed Drawdown Date:[] (or, if that is not a Business Day, the next Business Day) 

Amount:[] or, if less, the Commitment 

3.We confirm that each condition specified in Clause 4 (Conditions Precedent) of the Agreement is satisfied on the date of this Drawdown Request. 

4.The proceeds of this Loan should be credited to [account]. 

5.This Drawdown Request is irrevocable. 

 

 

Yours faithfully

 

 

………………………………… authorised signatory for Mexedia DAC


- 44 -



Mexedia Repayment Plan

SCHEDULE 3 REPAYMENT SCHEDULE

 

 

 

Extra Interest Accrual Plan "Deferral"

 

Loan Principal (EUR)43,932,037.52Accrual Start Date18/09/2024 Loan Term (months)60.00Accrual End Date 30/11/2024 

Loan Term (years)5Interest due 18/09- 

30/11 979,928.50

 

Repayment Plan Start Date

01/12/2024Interest Rate on Deferral 

11.00%

 

 

 

Payment Date

Deferral

Principal

Interest

Payment Plan Adjustment

15/12/2024

979,928.50

244,982.13

4,134.49

249,116.62

15/01/2025

734,946.38

244,982.13

6,866.21

251,848.34

15/02/2025

489,964.25

244,982.13

4,577.47

249,559.60

15/03/2025

244,982.13

244,982.13

2,067.25

247,049.37

997,573.93

Repayment Plan End Date

15/11/2029

 

Interest rate period

 

Interest rate

01/12/2024-15/05/2025

8.50%

15/05/2025-15/11/2025

9.00%

15/11/2025-15/05/2026

9.50%

15/05/2026-15/11/2029

10.00%


- 45 -



 

 

#

Installment

Variable Principal Repayment Schedule

PrincipalPrincipal 

Start PeriodEnd PeriodPaymentOutstandingOutstandingInterestInterestPrincipalDeferralTotal 

DateBeginning ofEnd of PeriodRateRepaymentRepaymentAdjustmentRepaymen 

Period

 

1

 

01/12/2024

 

15/12/2024

 

15/12/2024

 

43,932,037.52

 

43,748,987.36

8.5%

 

-145,219.79

- 183,050.16

- 249,116.62

- 577,386.57

2

15/12/2024

15/01/2025

15/01/2025

43,748,987.36

43,626,953.93

8.5%

-320,218.28

- 122,033.44

- 251,848.34

- 694,100.06

3

15/01/2025

15/02/2025

15/02/2025

43,626,953.93

43,504,920.49

8.5%

-319,325.07

- 122,033.44

- 249,559.60

- 690,918.10

4

15/02/2025

15/03/2025

15/03/2025

43,504,920.49

43,358,480.36

8.5%

-287,615.86

- 146,440.13

- 247,049.37

- 681,105.36

5

15/03/2025

15/04/2025

15/04/2025

43,358,480.36

43,040,132.27

8.5%

-317,359.99

-

318,348.10

-

-

635,708.09

6

15/04/2025

15/05/2025

15/05/2025

43,040,132.27

42,707,313.80

8.5%

-304,867.60

-

332,818.47

-

-

637,686.07

7

15/05/2025

15/06/2025

15/06/2025

42,707,313.80

42,374,495.33

9.0%

-330,981.68

-

332,818.47

-

-

663,800.15

8

15/06/2025

15/07/2025

15/07/2025

42,374,495.33

42,008,395.02

9.0%

-317,808.72

- 366,100.31

-

- 683,909.03

9

15/07/2025

15/08/2025

15/08/2025

42,008,395.02

41,642,294.71

9.0%

-325,565.06

- 366,100.31

-

- 691,665.37

10

15/08/2025

15/09/2025

15/09/2025

41,642,294.71

41,154,160.96

9.0%

-322,727.78

- 488,133.75

-

- 810,861.53

11

15/09/2025

15/10/2025

15/10/2025

41,154,160.96

40,666,027.21

9.0%

-308,656.21

-

488,133.75

-

-

796,789.96

12

15/10/2025

15/11/2025

15/11/2025

40,666,027.21

40,177,893.46

9.0%

-315,161.71

-

488,133.75

-

-

803,295.46

13

15/11/2025

15/12/2025

15/12/2025

40,177,893.46

39,689,759.71

9.5%

-318,074.99

- 488,133.75

-

- 806,208.74


- 46 -



14

15/12/2025

15/01/2026

15/01/2026

39,689,759.71

39,201,625.96

9.5%

-324,684.28

-

488,133.75

-

-

812,818.03

15

15/01/2026

15/02/2026

15/02/2026

39,201,625.96

38,638,394.71

9.5%

-320,691.08

- 563,231.25

-

- 883,922.33

16

15/02/2026

15/03/2026

15/03/2026

38,638,394.71

38,075,163.46

9.5%

-285,494.81

- 563,231.25

-

- 848,726.06

17

15/03/2026

15/04/2026

15/04/2026

38,075,163.46

37,511,932.21

9.5%

-311,475.99

-

563,231.25

-

-

874,707.24

18

15/04/2026

15/05/2026

15/05/2026

37,511,932.21

36,948,700.96

9.5%

-296,969.46

-

563,231.25

-

-

860,200.71

19

15/05/2026

15/06/2026

15/06/2026

36,948,700.96

36,190,350.31

10.0%

-318,169.37

- 758,350.65

-

- 1,076,520.0

20

15/06/2026

15/07/2026

15/07/2026

36,190,350.31

35,431,999.66

10.0%

-301,586.25

- 758,350.65

-

- 1,059,936.9

21

15/07/2026

15/08/2026

15/08/2026

35,431,999.66

34,673,649.01

10.0%

-305,108.89

- 758,350.65

-

- 1,063,459.5

22

15/08/2026

15/09/2026

15/09/2026

34,673,649.01

33,915,298.37

10.0%

-298,578.64

- 758,350.65

-

- 1,056,929.2

23

15/09/2026

15/10/2026

15/10/2026

33,915,298.37

33,156,947.72

10.0%

-282,627.49

-

758,350.65

-

-

1,040,978.1

24

15/10/2026

15/11/2026

15/11/2026

33,156,947.72

32,398,597.07

10.0%

-285,518.16

-

758,350.65

-

-

1,043,868.8

25

15/11/2026

15/12/2026

15/12/2026

32,398,597.07

31,640,246.42

10.0%

-269,988.31

- 758,350.65

-

- 1,028,338.9

26

15/12/2026

15/01/2027

15/01/2027

31,640,246.42

30,881,895.77

10.0%

-272,457.68

- 758,350.65

-

- 1,030,808.3

27

15/01/2027

15/02/2027

15/02/2027

30,881,895.77

30,068,339.52

10.0%

-265,927.44

- 813,556.25

-

- 1,079,483.6

28

15/02/2027

15/03/2027

15/03/2027

30,068,339.52

29,254,783.27

10.0%

-233,864.86

-

813,556.25

-

-

1,047,421.1

29

15/03/2027

15/04/2027

15/04/2027

29,254,783.27

28,441,227.02

10.0%

-251,916.19

-

813,556.25

-

-

1,065,472.4

30

15/04/2027

15/05/2027

15/05/2027

28,441,227.02

27,627,670.77

10.0%

-237,010.23

- 813,556.25

-

- 1,050,566.4


- 47 -



31

15/05/2027

15/06/2027

15/06/2027

27,627,670.77

26,814,114.52

10.0%

-237,904.94

-

813,556.25

-

-

1,051,461.1

32

15/06/2027

15/07/2027

15/07/2027

26,814,114.52

26,000,558.27

10.0%

-223,450.95

- 813,556.25

-

- 1,037,007.2

33

15/07/2027

15/08/2027

15/08/2027

26,000,558.27

25,187,002.02

10.0%

-223,893.70

- 813,556.25

-

- 1,037,449.9

34

15/08/2027

15/09/2027

15/09/2027

25,187,002.02

24,373,445.77

10.0%

-216,888.07

-

813,556.25

-

-

1,030,444.3

35

15/09/2027

15/10/2027

15/10/2027

24,373,445.77

23,559,889.52

10.0%

-203,112.05

-

813,556.25

-

-

1,016,668.3

36

15/10/2027

15/11/2027

15/11/2027

23,559,889.52

22,746,333.27

10.0%

-202,876.83

- 813,556.25

-

- 1,016,433.0

37

15/11/2027

15/12/2027

15/12/2027

22,746,333.27

21,831,082.49

10.0%

-189,552.78

- 915,250.78

-

- 1,104,803.5

38

15/12/2027

15/01/2028

15/01/2028

21,831,082.49

20,915,831.71

10.0%

-187,989.88

- 915,250.78

-

- 1,103,240.6

39

15/01/2028

15/02/2028

15/02/2028

20,915,831.71

20,000,580.93

10.0%

-180,108.55

- 915,250.78

-

- 1,095,359.3

40

15/02/2028

15/03/2028

15/03/2028

20,000,580.93

19,085,330.14

10.0%

-161,115.79

-

915,250.78

-

-

1,076,366.5

41

15/03/2028

15/04/2028

15/04/2028

19,085,330.14

18,170,079.36

10.0%

-164,345.90

-

915,250.78

-

-

1,079,596.6

42

15/04/2028

15/05/2028

15/05/2028

18,170,079.36

17,254,828.58

10.0%

-151,417.33

- 915,250.78

-

- 1,066,668.1

43

15/05/2028

15/06/2028

15/06/2028

17,254,828.58

16,339,577.80

10.0%

-148,583.25

- 915,250.78

-

- 1,063,834.0

44

15/06/2028

15/07/2028

15/07/2028

16,339,577.80

15,424,327.02

10.0%

-136,163.15

- 915,250.78

-

- 1,051,413.9

45

15/07/2028

15/08/2028

15/08/2028

15,424,327.02

14,509,076.24

10.0%

-132,820.59

-

915,250.78

-

-

1,048,071.3

46

15/08/2028

15/09/2028

15/09/2028

14,509,076.24

13,593,825.45

10.0%

-124,939.27

-

915,250.78

-

-

1,040,190.0

47

15/09/2028

15/10/2028

15/10/2028

13,593,825.45

12,678,574.67

10.0%

-113,281.88

- 915,250.78

-

- 1,028,532.6


- 48 -



48

15/10/2027

15/11/2027

15/11/2027

12,678,574.67

11,763,323.89

10.0%

-109,176.62

- 915,250.78

-

- 1,024,427.4

49

15/11/2027

15/12/2027

15/12/2027

11,763,323.89

10,787,056.39

10.0%

- 98,027.70

- 976,267.50

-

- 1,074,295.2

50

15/12/2027

15/01/2027

15/01/2027

10,787,056.39

9,810,788.89

10.0%

- 92,888.54

- 976,267.50

-

- 1,069,156.0

51

15/01/2027

15/02/2027

15/02/2027

9,810,788.89

8,834,521.39

10.0%

- 84,481.79

- 976,267.50

-

- 1,060,749.2

52

15/02/2027

15/03/2027

15/03/2027

8,834,521.39

7,858,253.89

10.0%

- 68,712.94

- 976,267.50

-

- 1,044,980.4

53

15/03/2027

15/04/2027

15/04/2027

7,858,253.89

6,881,986.39

10.0%

- 67,668.30

- 976,267.50

-

- 1,043,935.8

54

15/04/2027

15/05/2027

15/05/2027

6,881,986.39

5,905,718.89

10.0%

- 57,349.89

- 976,267.50

-

- 1,033,617.3

55

15/05/2027

15/06/2028

15/06/2028

5,905,718.89

4,929,451.39

10.0%

- 50,854.80

- 976,267.50

-

- 1,027,122.3

56

15/06/2028

15/07/2028

15/07/2028

4,929,451.39

3,953,183.89

10.0%

- 41,078.76

- 976,267.50

-

- 1,017,346.2

57

15/07/2028

15/08/2028

15/08/2028

3,953,183.89

2,976,916.39

10.0%

- 34,041.31

- 976,267.50

-

- 1,010,308.8

58

15/08/2028

15/09/2028

15/09/2028

2,976,916.39

2,000,648.89

10.0%

- 25,634.56

- 976,267.50

-

- 1,001,902.0

59

15/09/2028

15/10/2028

15/10/2028

2,000,648.89

1,024,381.39

10.0%

-16,672.07

-976,267.50

-

-992,939.57

60

15/10/2028

15/11/2028

15/11/2028

1,024,381.39

-

10.0%

8,821.06

-1,024,381.38

-

-1,033,202.4


- 49 -



SIGNATURES

 

 

 

THE BORROWER AND AN OBLIGOR

SIGNED by

MEXEDIA DAC acting by the following person(s) who, in accordance with the laws of its territory of incorporation, is/are acting under the actual authority of such party

 

 

)

)

)

)

)

)/s/ Orlando Taddeo 

Orlando Taddeo, Director

 

 

 

 

 

AN OBLIGOR

SIGNED by

MATCHCOM TELECOMMUNICATION INC acting

by the following person(s) who, in accordance with the laws of its territory of incorporation, is/are acting under the actual authority of such party

 

 

)

)

)

)

)

)/s/ Orlando Taddeo 

Orlando Taddeo, Director

 

 

 

 

 

 

 

AN OBLIGOR

SIGNED by

PHONETIME INC acting by the following person(s) who, in accordance with the laws of its territory of incorporation, is/are acting under the actual authority of such party

 

 

)

)

)

)

)

)/s/ Orlando Taddeo 

Orlando Taddeo, Director


- 50 -



THE LENDER

 

 

SIGNED by

FASANARA SECURITISATION S.A.,

acting in respect of its COMPARTMENT H acting by the following person(s) who, in accordance with the laws of its territory of incorporation, is/are acting under the actual authority of such party

)

)

)

)

)

)

/s/ Francesco Filia

Francesco Filia, Director

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


- 51 -


SETTLEMENT AGREEMENT

 

This Settlement Agreement (this “Agreement”) is entered into as of November 22, 2024, by and between Raadr, Inc., a Nevada corporation (the “Company”), and Boot Capital, LLC (“Investor”, and, together with the Company, the “Parties”). 

 

WHEREAS, the Company currently is indebted to Investor in the aggregate amount of 67,028.52 under a promissory note dated November 18, 2022, as amended as of October 8, 2024 (the “Note Amendment”), as more particularly described on Exhibit A attached hereto and made a part hereof (collectively, the “Company Obligations”), there being no other Company instruments held by Investor; and

 

WHEREAS, certain unspecified disputes (the “Unspecified Disputes”) may have arisen between the Parties in respect of the Company Obligations, the terms and conditions thereof, the payments that may be due and owning thereon, the number of shares to which Investor may have rights or the actions of the Company in connection therewith; and

 

WHEREAS, subject to the terms and conditions set forth herein, the Company and Investor desire to enter into a transaction to settle the Unspecified Disputes wherein the Company will issue to Investor a total of 450,000,000 shares of Company common stock (the “Settlement Shares”) on the terms and conditions herein.

 

NOW, THEREFORE, in consideration of the rights and benefits that they will each receive in connection with this Agreement, the Parties, intending to be legally bound, agree as follows: 

 

1.Settlement. In exchange for the Company Obligations held by Investor, the Company shall issue and deliver the Settlement Shares to Investor, at the Closing (as defined below), pursuant to Section 3(a)(9) of the Securities Act of 1933, as amended (the “Securities Act”), and/or Section 4(a)(2) of the Securities Act. 

 

2.Closing. On the Closing Date (as defined below), subject to the terms and conditions of this Agreement, the Company shall deliver (a) the Closing Shares and (b) the Reserve Letter, and Investor shall exchange the Company Obligations held by Investor therefor. Upon receipt of the Closing Shares, all of Investor’s rights under the Company Obligations shall be extinguished. The exchange described in the foregoing sentence shall take place remotely via electronic delivery of signatures and documents within one (1) day of the date hereof, or at such other time and place as the Company and Investor mutually agree (the “Closing” and such date the “Closing Date”). 


SETTLEMENT AGREEMENT   |   PAGE 1



3.Leak-Out Agreement. The leak-out provisions contained in the Note Amendment shall survive so long as Investor shall hold any of the Settlement Shares issued pursuant to this Agreement. 

 

4.Closing Conditions. 

 

(a)Conditions to Investor’s Obligations. The obligation of Investor to consummate the Closing is subject to the fulfillment, to Investor’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(1)Representations and Warranties. The representations and warranties of the Company contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 

 

(2)No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

(3)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such transactions shall be satisfactory in substance and form to Investor, and Investor shall have received all such counterpart originals or certified or other copies of such documents as it may reasonably request. 

 

(4)Issuance. The Company shall have issued to Investor the Settlement Shares. 

 

(b)Conditions to the Company’s Obligations. The obligation of the Company to consummate the Closing is subject to the fulfillment, to the Company’s reasonable satisfaction, prior to or at the Closing, of each of the following conditions: 

 

(1)Representations and Warranties. The representations and warranties of Investor contained in this Agreement shall be true and correct in all material respects on the date hereof and on and as of the Closing Date as if made on and as of such date. 

 

(2) No Actions. No action, proceeding, investigation, regulation or legislation shall have been instituted, threatened or proposed before any court, governmental agency or authority or legislative body to enjoin, restrain, prohibit, or obtain substantial damages in respect of, this Agreement or the consummation of the transactions contemplated by this Agreement. 

 

(3)Proceedings and Documents. All proceedings in connection with the transactions contemplated hereby and all documents and instruments incident to such  


SETTLEMENT AGREEMENT   |   PAGE 2



transactions shall be satisfactory in substance and form to the Company and the Company shall have received all such counterpart originals or certified or other copies of such documents as the Company may reasonably request.

 

5.Representations and Warranties of the Company. The Company hereby represents and warrants to Investor as of the date hereof as follows: 

 

(a)Organization and Standing. The Company is a corporation duly organized, validly existing and in good standing under the laws of Nevada. The Company has all requisite corporate power and authority to own and operate its properties and assets and to carry on its business as presently conducted. The Company is duly qualified and authorized to transact business and is in good standing as a foreign corporation in each jurisdiction in which the failure to so qualify would have a material adverse effect on its business, properties or financial condition. 

 

(b)Corporate Power. The Company has all requisite legal and corporate power and authority to execute and deliver this Agreement, to issue the Settlement Shares hereunder, and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby.  

 

(c)Authorization. All corporate action on the part of the Company, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance of this Agreement, the authorization, sale, issuance and delivery of the Settlement Shares and the performance of all of the Company’s obligations hereunder have been taken or will be taken prior to the Closing. This Agreement has been duly executed by the Company and constitutes valid and legally binding obligations of the Company, enforceable against the Company in accordance with their respective terms, subject to applicable law. 

 

(d)Capitalization. As of the date of this Agreement, the authorized capital stock of the Company consists of: 15,000,000,000 shares of common stock, , par value $0.001 per share, of which 5,101,760,661 shares are issued and outstanding; and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and none of which shares are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and 75,000 shares of which are issued and outstanding. All of the Company’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 

 

(e)Issuance of Settlement Shares. The issuance, sale and delivery of the Settlement Shares in accordance with this Agreement have been duly authorized by all necessary corporate action on the part of the Company. The Settlement Shares, when issued, sold and delivered in accordance with the terms and conditions of this Agreement, will be duly and validly issued, fully paid and non-assessable. 

 

(f)Consents; Waivers. No consent, waiver, approval or authority of any nature, or other formal action, by any Person, not already obtained, is required in connection  


SETTLEMENT AGREEMENT   |   PAGE 3



with the execution and delivery of this Agreement by the Company or the consummation by the Company of the transactions provided for herein and therein. As used herein, “Person” means an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind.

 

(g)Absence of Litigation. There is no action, suit, proceeding, inquiry or investigation before or by any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company, the Settlement Shares or any of the Company’s officers or directors in their capacities as such. 

 

(h)Validity; Enforcement; No Conflicts. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Company and shall constitute the legal, valid and binding obligations of the Company enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies. The execution, delivery and performance by the Company of this Agreement and the consummation by the Company of the transactions contemplated hereby will not (1) result in a violation of the organizational documents of the Company, (2) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company is a party or by which it is bound, or (3) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities or “blue sky” laws) applicable to the Company, except in the case of clause (2) above, for such conflicts, defaults or rights which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Company to perform its obligations hereunder. 

 

(i)Offering. Subject in part on the accuracy of Investor’s representations herein, the offer, sale and issuance of the Settlement Shares in conformity with the terms of this Agreement constitute transactions exempt from registration of under the Securities Act and from all applicable state securities laws. The sole consideration for the issuance of the Settlement Shares is Investor’s surrender of the Company Obligations. 

 

6.Representations and Warranties of Investor. Investor hereby represents and warrants as of the date hereof to the Company as follows: 

 

(a)Corporate Power. Investor has all requisite legal and corporate power and authority to execute and deliver this Agreement, and to carry out and perform its obligations under the terms of this Agreement and the transactions contemplated hereby. 

 

(b)Authorization. All corporate action on the part of Investor, its officers, directors and stockholders necessary for the authorization, execution, delivery and performance  


SETTLEMENT AGREEMENT   |   PAGE 4



of this Agreement and the performance of all of Investor’s obligations hereunder have been taken or will be taken prior to the Closing. This Agreement has been duly executed by Investor and constitutes valid and legally binding obligations of Investor, enforceable against Investor in accordance with their respective terms, subject to applicable law.

 

(c)Own Account. Investor is acquiring the Settlement Shares for its own account. 

 

(d)Investment Purpose. As of the Closing, Investor is purchasing the Settlement Shares for its own account and not with a present view towards the public sale or distribution thereof, except pursuant to sales registered or exempted from registration under the Securities Act; provided, however, that by making the representations herein, Investor does not agree to hold any of such securities for any minimum or other specific term and reserves the right to dispose of such securities at any time in accordance with or pursuant to a registration statement or an exemption under the Securities Act. 

 

(e)Accredited Investor Status. Investor is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D (an “Accredited Investor”). 

 

(f)Legends. Investor understands that until such time as the Settlement Shares have been registered under the Securities Act or may be sold pursuant to Rule 144, Rule 144A under the Securities Act, Regulation A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, such securities may bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such securities): 

 

“NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE [CONVERTIBLE/EXERCISABLE] HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL (WHICH COUNSEL SHALL BE SELECTED BY THE HOLDER), IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144, RULE 144A, REGULATION S, OR OTHER APPLICABLE EXEMPTION UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.”

 

The legend set forth above shall be removed and the Company shall issue a certificate or book entry statement for the applicable shares of common stock without such legend to the holder upon which it is stamped or (as requested by such holder) issue the applicable shares of common stock to such holder by electronic delivery by crediting the account of such holder’s broker with The Depository Trust Company (“DTC”), if, unless otherwise required by applicable state securities laws, (a) such security is registered for sale under an effective registration statement filed under the Securities Act or otherwise may be sold pursuant to Rule 144, Rule 144A, Regulation A, Regulation S, or other applicable exemption without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) the Company or Investor provides the an opinion of counsel to the effect that a public sale  


SETTLEMENT AGREEMENT   |   PAGE 5



or transfer of such security may be made without registration under the Securities Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated with any such issuance. Investor agrees to sell all such securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any.

 

(g)No Other Securities. Investor represents that the convertible promissory note comprising the Company Obligations is the only security of the Company owned by the Investor. 

 

7.No Short Sales. Investor, its successors, assigns and affiliates, agrees that so long as the Settlement Shares are not sold, Investor and Investor’s affiliates shall not, directly or indirectly, enter into or effect “short sales” of the common stock of the Company or hedging transaction which establishes a short position with respect to the common stock of the Company. The Company acknowledges and agrees that upon delivery of a conversion notice by Investor, Investor immediately owns the shares of common stock described in the conversion notice and any sale of those shares issuable under such conversion notice would not be considered short sales. 

 

8.Miscellaneous. 

 

(a)Entire Agreement. This Agreement, together with the schedules and exhibits attached hereto, contain the entire understanding of the parties with respect to the subject matter hereof and supersede all prior agreements and understandings, oral or written with respect to such matters. 

 

(b)Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (2) personally served, (2) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (3) delivered by reputable air courier service with charges prepaid, or (4) transmitted by hand delivery or e-mail, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. 

 

Any notice or other communication required or permitted to be given hereunder shall be deemed effective (A) upon hand delivery or delivery by e-mail at the address or e-mail address designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (B) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall occur first. Such notice shall be properly delivered to the address set forth beneath the name of such party below: 


SETTLEMENT AGREEMENT   |   PAGE 6



If to Investor:Boot Capital, LLC 

1688 Meridian Avenue, Suite 723

Miami Beach, Florida 33139

Attention: Peter Rosten, President

E-mail: rost_nyc@yahoo.com

 

If to the Company:Raadr, Inc. 

1680 Michigan Avenue, Suite 700

Miami Beach, Florida 33139

Attention: Daniel Gilcher, Chief Financial Officer

E-mail: dgilcher@mexedia.com

 

(c)Amendments; Waivers. No provision of this Agreement may be waived, modified, supplemented or amended except in a written instrument signed, in the case of an amendment, by the Company and Investor, in the case of a waiver, by the party against whom enforcement of any such waived provision is sought. No waiver with respect to any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver in the future or a waiver of any other provision, condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair the exercise of any such right. 

 

(d)Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof. 

 

(e)Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their successors and permitted assigns. 

 

(f)No Third-Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person. 

 

(g)Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed and enforced in accordance with the internal laws of the State of Nevada, without regard to the principles of conflict of laws thereof.  Each party agrees that all legal proceedings concerning the interpretation, enforcement and defense of the transactions contemplated by this Agreement (whether brought against a party hereto or its respective affiliates, directors, officers, shareholders, employees or agents) shall be commenced in the state and federal courts sitting in the Miami, Florida (the “Florida Courts”). Each party hereto hereby irrevocably submits to the exclusive jurisdiction of the Florida Courts for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of such Florida Courts, or such Florida Courts are improper or inconvenient venue for such proceeding.  Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or  


SETTLEMENT AGREEMENT   |   PAGE 7



proceeding by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof.  Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by applicable law. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby. If any party shall commence an action or proceeding to enforce any provisions of this Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the other party for its attorneys’ fees and other costs and expenses incurred in the investigation, preparation and prosecution of such action or proceeding.

 

(h)Survival. The representations and warranties contained herein shall survive the Closing for the applicable statute of limitations. 

 

(i)Execution. This Agreement may be executed in two (2) or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Counterparts may be delivered via electronic mail (including pdf or any electronic signature complying with the U.S. federal ESIGN Act of 2000, e.g., www.docusign.com) or other transmission method and any counterpart so delivered shall be deemed to have been duly and validly delivered and be valid and effective for all purposes. 

 

(j)Severability. If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially reasonable efforts to find and employ, an alternative means to achieve the same or substantially the same result as that contemplated by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared invalid, illegal, void or unenforceable. 

 

(k)Construction. The parties hereto agree that each of them and/or their respective counsel have reviewed and have had an opportunity to revise this Agreement and the schedules attached hereto. This Agreement shall be construed according to its fair meaning and not strictly for or against any party. The word “including” shall be construed to include the words “without limitation.” In this Agreement, unless the context otherwise requires, references to the singular shall include the plural and vice versa. 

 

[ SIGNATURE PAGE FOLLOWS ]


SETTLEMENT AGREEMENT   |   PAGE 8



[ SIGNATURE PAGE TO SETTLEMENT AGREEMENT ]

 

 

IN WITNESS WHEREOF, the Parties have caused this Settlement Agreement to be duly executed and delivered as of the date and year first written above. 

 

COMPANY:INVESTOR: 

 

RAADR, INC.BOOT CAPITAL, LLC 

 

 

By: /s/ Daniel ContrerasBy: /s/ Peter Rosten 

Daniel ContrerasPeter Rosten 

Chief Executive President 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SETTLEMENT AGREEMENT   |   PAGE 9



EXHIBIT A

 

Description of the Company Obligations

 

 

 

1.Promissory note dated November 18, 2022, as amended as of October 8, 2024  

 

Current Balance: $ 67,028.52 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


SETTLEMENT AGREEMENT   |   PAGE 10


SHARE EXCHANGE AGREEMENT

 

This Share Exchange Agreement (this “Agreement”) is entered into as of this 9th day of September, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Mexedia Inc., a Florida corporation (“Acquired Company”), and Mexedia S.p.A. S.B., the owner of Acquired Company (the “Owner”). 

 

RECITALS 

 

WHEREAS, this Agreement is one of a series of agreements that would, when consummated, result in the Company’s (a) having acquired businesses and assets valued in excess of USD$60,000,000 and (b) having undergone a change in control (collectively, the “Change-in-Control Agreements”);

 

WHEREAS, the Boards of Directors of RDAR, Acquired Company and the Owner have determined that an acquisition of all of the issued and outstanding shares of capital stock of Acquired Company by RDAR through a share exchange upon the terms and subject to the conditions set forth in this Agreement (the “Share Exchange”) would be in the best interests of RDAR, Acquired Company and the Owner; and

 

WHEREAS, and the Boards of Directors of RDAR and Acquired Company have each approved the Share Exchange; and

 

WHEREAS, this Agreement is under consideration by the Board of Directors of the Owner for formal determination and approval; and

 

WHEREAS, pursuant to the Share Exchange, all of the right, title and interest in and to all of the issued and outstanding shares of capital stock of Acquired Company (the “Ownership Interest”) will be exchanged for 45,000 shares of Series F Preferred Stock of RDAR, the Certificate of Designation of which is attached hereto as Exhibit A, including the common stock into which such shares may be converted (the “Exchange Shares”); and

 

WHEREAS, RDAR, Acquired Company and the Owner desire to make certain representations, warranties, covenants and agreements in connection with the Share Exchange and also to prescribe various conditions to the Share Exchange.

 

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows: 

 

Article I.

The Exchange

 

1.1Share Exchange. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Nevada Revised Statutes (the “Nevada Statutes”), at the Closing (defined below), the parties shall do the following: 


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 1



(a)Acquired Company shall cause the Owner to convey, assign and transfer the Ownership Interest to RDAR by delivering to RDAR duly executed assignments in proper form for transfer. The Ownership Interest transferred to RDAR at the Closing shall constitute 100% of the issued and outstanding shares of capital stock of Acquired Company. 

 

(b)As consideration for its acquisition of the Ownership Interest, RDAR shall issue the Exchange Shares to the Owner by delivering a book entry record to the Owner evidencing the Exchange Shares (the “Exchange Shares Certificate”). 

 

1.2Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VIII, the closing date of the Exchange (the “Closing”) will take place on the business day upon satisfaction of the conditions set forth in Article VI (or as soon as practicable thereafter following satisfaction or waiver of the conditions set forth in Article VI) (the “Closing Date”), at such time and location as may be agreed upon by RDAR and Acquired Company; provided, however, that the Closing shall take place no later than January 31, 2025. 

 

1.3Reorganization. 

 

(a)As of the Closing, Jacob DiMartino shall resign as RDAR’s sole director and officer and Orlando Taddeo shall be appointed as the sole director and officer of RDAR. 

 

(b)If at any time after the Closing, any party shall consider that any further deeds, assignments, conveyances, agreements, documents, instruments or assurances in law or any other things are necessary or desirable to vest, perfect, confirm or record in RDAR the title to any property, rights, privileges, powers and franchises of Acquired Company by reason of, or as a result of, the Share Exchange, or otherwise to carry out the provisions of this Agreement, the remaining parties, as applicable, shall execute and deliver, upon request, any instruments or assurances, and do all other things necessary or proper to vest, perfect, confirm or record title to such property, rights, privileges, powers and franchises in RDAR, and otherwise to carry out the provisions of this Agreement. 

 

Article II.

Compliance with Applicable Securities Laws

 

2.1Covenants, Representations and Warranties of the Owner. 

 

(a)The Owner acknowledges and agrees that it is acquiring the Exchange Shares for investment purposes and will not offer, sell or otherwise transfer, pledge or hypothecate any of the Exchange Shares issued to them (other than pursuant to an effective Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”)) directly or indirectly unless: 

 

(1)the sale is to RDAR; or 

 

(2)the Exchange Shares are sold in a transaction that does not require registration under the Securities Act, or any applicable United States state laws and regulations governing the offer and sale of securities, and the seller has furnished to RDAR an opinion of counsel to that effect or such other written opinion as may be reasonably required by RDAR. 

 

(b)The Owner acknowledges and agrees that the book entry record representing the Exchange Shares shall bear a restrictive legend, substantially in the following form: 


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“THE SECURITIES REPRESENTED BY THIS STOCK CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS, AND SHALL NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED (WHETHER OR NOT FOR CONSIDERATION) BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.” 

 

(c)The Owner represents and warrants that it: 

 

(1)is not aware of any advertisement of, or other form or general solicitation with respect to, any of the Exchange Shares being issued hereunder; 

 

(2)acknowledges and agrees that RDAR will refuse to register any transfer of the Exchange Shares not made pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act and in accordance with applicable state and provincial securities laws; and 

 

(3)acknowledges and agrees to RDAR making a notation on its records or giving instructions to the registrar and transfer agent of RDAR in order to implement the restrictions on transfer set forth and described herein. 

 

Article III.

Representations and Warranties

 

3.1Representations and Warranties of Acquired Company and the Owner. As a material inducement for RDAR to enter into this Agreement and to consummate the transactions contemplated hereby, Acquired Company and the Owner hereby make the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by RDAR regardless of any investigation made or information obtained by RDAR (unless and to the extent specifically and expressly waived in writing by RDAR on or before the Closing Date): 

 

(a)Organization, Standing and Power; No Disability. Acquired Company is duly organized, validly existing and in good standing under the laws of the State of Florida. The Owner is duly organized, validly existing and in good standing under the laws of its organization. 

 

(b)Subsidiaries. Acquired Company has two subsidiaries: (1) Matchcom Technologies, Inc., a Florida corporation; and (2) Phonetime, Inc., a Florida corporation. 

 

(c)Corporate Documents. Schedule 3.1(c) contains true and correct copies of the Articles of Incorporation and bylaws of Acquired Company, each as amended to date. 

 

(d)Ownership Interest. The Ownership Interest represents 100% of the issued and outstanding shares of capital stock of Acquired Company. Acquired Company also warrants that there are no outstanding bonds, debentures, notes or other indebtedness or other securities of Acquired Company. There are no rights, commitments, agreements, arrangements or undertakings of any kind to which Acquired Company is a party or by which it is bound obligating Acquired Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional ownership interests of Acquired Company or obligating Acquired Company to issue, grant, extend or enter into any such right, commitment, agreement, arrangement or undertaking. There are  


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no outstanding contractual obligations, commitments, understandings or arrangements of Acquired Company to repurchase, redeem or otherwise acquire or make any payment in respect of the capital stock of Acquired Company.

 

(e)Capitalization of Acquired Company. Schedule 3(e) sets forth the issued and outstanding shares of capital stock of Acquired Company (the Ownership Interest). All of Acquired Company’s issued and outstanding shares of capital stock have been duly authorized, are validly issued, fully paid and non-assessable. 

 

(f)Authority; Non-contravention. Acquired Company and the Owner have all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Acquired Company and its Owner and the consummation by Acquired Company and the Owner of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary action on the part of Acquired Company. This Agreement has been duly executed and when delivered by Acquired Company and the Owner shall constitute a valid and binding obligation of Acquired Company and the Owner, enforceable against Acquired Company and the Owner, as applicable, in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of Acquired Company under, (1) the articles of incorporation or bylaws of Acquired Company, (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to Acquired Company, its properties or assets, or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to Acquired Company, its properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to Acquired Company or could not prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement. 

 

(g)Governmental Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any United States court, administrative agency or commission, or other federal, state or local government or other governmental authority, agency, domestic or foreign (a “Governmental Entity”), is required by or with respect to Acquired Company in connection with the execution and delivery of this Agreement by Acquired Company or the consummation by Acquired Company of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Securities Act or the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder (the “Exchange Act”) or pursuant to the rules of OTC Markets. 

 

(h)Financial Statements. 

 

(1)At Closing, RDAR will have received from Acquired Company a copy of its unaudited financial statements for the years ended December 31, 2023 and 2022, and for the six months ended June 30, 2024 (collectively, the “Acquired Company Financial Statements”). The Acquired Company Financial Statements fairly present the financial condition of Acquired Company at the dates indicated and its results of operations and cash flows for the periods then ended and, except as indicated therein, reflect all  


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claims, debts and liabilities of Acquired Company, fixed or contingent, and of whatever nature.

 

(2)Since June 30, 2024, there has been no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operations or prospects, of Acquired Company, whether as a result of any legislative or regulatory change, revocation of any license or rights to do business, fire, explosion, accident, casualty, labor trouble, flood, drought, riot, storm, condemnation, act of God, public force or otherwise and no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operation or prospects, of Acquired Company except in the ordinary course of business. 

 

(3)Since June 30, 2024, Acquired Company has not issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise dispose of, any securities of Acquired Company, and has not granted or agreed to grant any other right to subscribe for or to purchase any securities of Acquired Company or has incurred or agreed to incur any indebtedness for borrowed money. 

 

(i)Absence of Certain Changes or Events. Since June 30, 2024, Acquired Company has conducted its business only in the ordinary course consistent with past practice, and there is not and has not been any: 

 

(1)material adverse change with respect to Acquired Company including any amendments to its formation and governance documents; 

 

(2)event which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 4.1 without prior consent of RDAR; 

 

(3)condition, event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement; 

 

(4)incurrence, assumption or guarantee by Acquired Company of any indebtedness for borrowed money other than in the ordinary course and in amounts and on terms consistent with past practices or as disclosed to RDAR in writing; 

 

(5)creation or other incurrence by Acquired Company of any lien on any asset other than in the ordinary course consistent with past practices; 

 

(6)transaction or commitment made, or any contract or agreement entered into, by Acquired Company relating to its assets or business (including the acquisition or disposition of any assets) or any relinquishment by Acquired Company of any contract or other right, in either case, material to Acquired Company, other than transactions and commitments in the ordinary course consistent with past practices and those contemplated by this Agreement; 

 

(7)labor dispute, other than routine, individual grievances, or, to the knowledge of Acquired Company, any activity or proceeding by a labor union or representative thereof to organize any employees of Acquired Company or any lockouts, strikes, slowdowns, work stoppages or threats by or with respect to such employees; 

 

(8)payment, prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due; 


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(9)write-offs or write-downs of any assets of Acquired Company; 

 

(10)creation, termination or amendment of, or waiver of any right under, any material contract of Acquired Company; 

 

(11)damage, destruction or loss having, or reasonably expected to have, a material adverse effect on Acquired Company; 

 

(12)other condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse effect or give rise to a material adverse change with respect to Acquired Company; or 

 

(13)agreement or commitment to do any of the foregoing. 

 

(j)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by Acquired Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(k)Litigation; Labor Matters; Compliance with Laws. 

 

(1)Except as set forth in Schedule 3(k)(1), there is no suit, action or proceeding or investigation pending or, to the knowledge of Acquired Company, threatened against or affecting Acquired Company or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to Acquired Company or prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against Acquired Company having, or which, insofar as reasonably could be foreseen by Acquired Company, in the future could have, any such effect. 

 

(2)Acquired Company is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike, work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material adverse effect with respect to Acquired Company. 

 

(3)The conduct of the business of Acquired Company complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 

 

(l)Benefit Plans. Acquired Company is not a party to any Benefit Plan under which Acquired Company currently has an obligation to provide benefits to any current or former employee, officer or director of Acquired Company. As used herein, “Benefit Plan” shall mean any employee benefit plan, program, or arrangement of any kind, including any defined benefit or defined contribution plan, ownership plan with respect to any membership interest, executive compensation program or arrangement, bonus plan, incentive compensation plan or arrangement, profit sharing plan or arrangement, deferred compensation plan, agreement or arrangement, supplemental retirement plan or arrangement, vacation pay, sickness, disability, or death benefit plan (whether provided through insurance, on a funded or unfunded basis, or otherwise), medical or life insurance plan providing benefits to employees, retirees, or former employees or any of their dependents, survivors, or beneficiaries, severance pay, termination, salary continuation, or employee assistance plan. 


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(m)Tax Returns and Tax Payments. 

 

(1)Acquired Company has timely filed with the appropriate taxing authorities all Tax Returns, as that term is hereinafter defined, required to be filed by it (taking into account all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes, as that term is hereinafter defined, due and owing by Acquired Company have been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). Acquired Company is not currently the beneficiary of any extension of time within which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to Acquired Company by a taxing authority in a jurisdiction where Acquired Company does not fileTax Returns that it is or may be subject to taxation by that jurisdiction. Since inception, Acquired Company has not incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice. 

 

(2)No material claim for unpaid Taxes has been made or become a lien against the property of Acquired Company or is being asserted against Acquired Company, no audit of any Tax Return of Acquired Company is being conducted by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by Acquired Company and is currently in effect. Acquired Company has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party. 

 

(3)As used herein, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts imposed by any governmental authority, domestic or foreign. As used herein, “ Tax Return “ shall mean any return, report or statement required to be filed with any governmental authority with respect to Taxes. 

 

(n)Environmental Matters. Acquired Company is in compliance with all Environmental Laws in all material respects. Acquired Company has not received any written notice regarding any violation of any Environmental Laws, as that term is hereinafter defined, including any investigatory, remedial or corrective obligations. Acquired Company holds all permits and authorizations required under applicable Environmental Laws, unless the failure to hold such permits and authorizations would not have a material adverse effect on Acquired Company, and is in compliance with all terms, conditions and provisions of all such permits and authorizations in all material respects. No releases of Hazardous Materials, as that term is hereinafter defined, have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by Acquired Company or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property which could result in any liability to Acquired Company. Acquired Company has not transported or arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to Acquired Company. Acquired Company has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a material adverse effect on Acquired Company. There are no past, pending or threatened claims under Environmental Laws against Acquired Company and Acquired Company is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against Acquired Company pursuant to Environmental Laws. “Environmental Laws” means all applicable foreign, federal, state and local statutes, rules, regulations, ordinances, orders, decrees and common law relating in any manner to contamination, pollution or protection of human health or the environment, and similar state laws. “Hazardous Material” means any toxic, radioactive, corrosive or otherwise hazardous substance, including petroleum, its derivatives, by-products and other hydrocarbons, or any substance having any constituent elements displaying  


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any of the foregoing characteristics, which in any event is regulated under any Environmental Law.

 

(o)Material Contracts. All Material Contracts copies of which have been furnished to RDAR. Acquired Company is not, or has not received any notice or has any knowledge that any other party is, in default in any respect under any Material Contract, as that term is hereinafter defined; and there has not occurred any event that with the lapse of time or the giving of notice or both would constitute such a material default. 

 

For purposes of this Agreement, a “Material Contract” means any contract, agreement or commitment that is effective as of the Closing Date to which Acquired Company is a party (1) with expected receipts or expenditures in an amount in excess of two percent (2%) of Acquired Company’s gross revenues for the 12 months ended July 31, 2025, (2) requiring Acquired Company to indemnify any person in an amount that is expected to exceed ten percent (10%) of Acquired Company’s owners’ equity as of the date of Closing, (3) granting exclusive rights to any party, (4) evidencing indebtedness for borrowed or loaned money in an amount in excess of ten percent (10%) of Acquired Company’s owners’ equity, including guarantees of such indebtedness, as of the date of Closing, or (5) which, if breached by Acquired Company in such a manner would (A) permit any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages (either individually or in the aggregate with all other such claims under that contract) from Acquired Company or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any such contract, agreement or commitment. 

 

(p)Properties. Acquired Company has no real property. Any facilities held under lease by Acquired Company is held by it under valid, subsisting and enforceable leases of which Acquired Company is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect. 

 

(q)Intellectual Property. 

 

(1)As used in this Agreement, the term “Trademarks” means trademarks, service marks, trade names, internet domain names, designs, slogans, and general intangibles of like nature; the term “Trade Secrets” means technology; trade secrets and other confidential information, know-how, proprietary processes, formulae, algorithms, models, and methodologies; the term “ Intellectual Property “ means patents, copyrights, Trademarks, applications for any of the foregoing, and Trade Secrets; the term “ Company License Agreements “ means any license agreements granting any right to use or practice any rights under any Intellectual Property (except for such agreements for off-the-shelf products that are generally available for less than $10,000), and any written settlements relating to any Intellectual Property, to which Acquired Company is a party or otherwise bound; and the term “ Software “ means any and all computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or object code. 

 

(2)Acquired Company owns or has valid rights to use the Trademarks, trade names, domain names, copyrights, patents, logos, licenses and computer software programs (including, without limitation, the source codes thereto) that are necessary for the conduct of its respective businesses as now being conducted. To the knowledge of Acquired Company, none of Acquired Company’s Intellectual Property or License Agreements infringe upon the rights of any third party that may give rise to a cause of action or claim against Acquired Company or its successors. 

 

(r)Affiliate Transactions. Except as set forth in Schedule 3(r), no officer, director or employee of Acquired Company or any member of the immediate family of any such officer, director or employee, or any entity in which any of such persons owns any beneficial interest (other than any publicly-held  


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corporation whose stock is traded on a national securities exchange or in the over-the-counter market and less than one percent of the stock of which is beneficially owned by any of such persons), has any agreement with Acquired Company or any interest in any of their property of any nature, used in or pertaining to the business of Acquired Company. None of the foregoing persons has any direct or indirect interest in any competitor, supplier or customer of Acquired Company or in any person from whom or to whom Acquired Company leases any property or transacts business of any nature.

 

(s)Undisclosed Liabilities. Except as set forth in Schedule 3(s), Acquired Company has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise.) 

 

(t)Full Disclosure. All of the representations and warranties made by Acquired Company in this Agreement, and all statements set forth in the certificates delivered by Acquired Company at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by Acquired Company pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to RDAR or its representatives by or on behalf of any of Acquired Company or its affiliates in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading. 

 

3.2Representations and Warranties of RDAR. As a material inducement for Acquired Company and the Owner to enter into this Agreement and to consummate the transactions contemplated hereby, RDAR hereby makes the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by Acquired Company regardless of any investigation made or information obtained by Acquired Company (unless and to the extent specifically and expressly waived in writing by Acquired Company on or before the Closing Date): 

 

(a)Organization, Standing and Corporate Power. RDAR is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power and authority and all government licenses, authorizations, permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted. RDAR is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect with respect to RDAR. 

 

(b)Subsidiaries. RDAR has no subsidiaries. 

 

(c)Capitalization of RDAR. The entire authorized capital stock of RDAR consists of 15,000,000,000 common shares, par value $0.001 per share, of which 4,433,149,661 shares are issued and outstanding, and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and 1,000,000 shares of which are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and no shares of which are issued and outstanding. All of RDAR’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 


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Except as set forth in Schedule 3.2(c), there are no other shares of RDAR capital stock issuable upon the exercise of outstanding warrants, convertible notes, options or otherwise. Except as set forth in Schedule 3.2(c), no shares of capital stock or other equity securities of RDAR are issued, reserved for issuance or outstanding. 

 

The Exchange Shares will be, when issued, duly authorized, validly issued, fully paid and non-assessable, not subject to preemptive rights and issued in compliance with all applicable state and federal laws concerning the issuance of securities. 

 

(d)Corporate Authority; Non-contravention. RDAR has all requisite corporate and other power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by RDAR and the consummation by RDAR of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary corporate action on the part of RDAR. This Agreement has been duly executed and when delivered by RDAR shall constitute a valid and binding obligation of RDAR, enforceable against RDAR in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of RDAR under (1) its articles of incorporation, bylaws, or other charter documents; (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to RDAR,its properties or assets; or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to RDAR, its properties or assets, other than, in the case of clauses (2) and (3), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to RDAR or could not prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement. 

 

(e)Government Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any Governmental Entity, is required by or with respect to RDAR in connection with the execution and delivery of this Agreement by RDAR, or the consummation by RDAR of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Nevada Statutes, the Securities Act or the Exchange Act. 

 

(f)Financial Statements. 

 

(1)The unaudited financial statements of RDAR included in the reports, schedules, forms, statements and other documents filed by RDAR with OTC Markets (collectively, and in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “RDAR Financial Information”) comply as to form in all material respects with applicable accounting requirements and the published rules of OTC Markets with respect thereto, have been prepared in accordance with U.S. generally accepted accounting principles applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the consolidated financial position of RDAR and its consolidated subsidiaries as of the dates thereof and the consolidated results of operations and changes in cash flows for the periods then ended. Except as set forth in the RDAR Financial Information, at the date of the most recent unaudited financial statements of RDAR included in the RDAR Financial Information, RDAR has not  


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incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR.

 

(2)RDAR has made the following financial information (the RDAR Financial Information) available to Acquired Company: 

 

(A)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the years ended December 31, 2023 and 2022; 

 

(B)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the six months ended June 30, 2024 (the “RDAR Interim Statements”); and 

 

(C)The RDAR Financial Information presents fairly the financial condition of RDAR as of such dates and the results of operations of RDAR for such periods, in accordance with GAAP and are consistent with the books and records of RDAR (which books and records are correct and complete). 

 

(g)Events Subsequent to RDAR Interim Statements. Since the date of the RDAR Interim Statements, there has not been, occurred or arisen, with respect to RDAR: 

 

(1)any change or amendment in its Articles of Incorporation and/or Bylaws; 

 

(2)any reclassification, split-up or other change in, or amendment of or modification to, the rights of the holders of any of its capital stock, except changes made in relation to the transactions contemplated by this Agreement; 

 

(3)any direct or indirect redemption, purchase or acquisition by any person of any of its capital stock or of any interest in or right to acquire any such stock; 

 

(4)any issuance, sale, or other disposition of any capital stock, or any grant of any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any capital stock; 

 

(5)any declaration, set aside, or payment of any dividend or any distribution with respect to its capital stock (whether in cash or in kind) or any redemption, purchase, or other acquisition of any of its capital stock; 

 

(6)the organization of any subsidiary or the acquisition of any shares of capital stock by any person or any equity or ownership interest in any business; 

 

(7)any damage, destruction or loss of any of its properties or assets whether or not covered by insurance; 

 

(8)any sale, lease, transfer or assignment of any of its assets, tangible or intangible, other than for a fair consideration in the ordinary course of business; 

 

(9)the execution of, or any other commitment to any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) outside the ordinary course of business; 


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(10)any acceleration, termination, modification, or cancellation of any agreement, contract lease or license (or series of related agreements, contracts, leases, and licenses) involving more than $10,000 to which it is a party or by which it is bound; 

 

(11)any security interest or encumbrance imposed upon any of its assets, tangible; 

 

(12)any capital investment in, any loan to, or any acquisition of the securities or assets of, any other person or entity (or series of related capital investments, loans and acquisitions) involving more than $2,500 and outside the ordinary course of business; 

 

(13)any issuance of any note, bond or other debt security, or created, incurred, assumed, or guaranteed any indebtedness for borrowed money or capitalized lease obligation involving more than $2,500; 

 

(14)any delay or postponement of the payment of accounts payable or other liabilities; 

 

(15)any loan to, or any entrance into any other transaction with, any of its directors, officers and employees either involving more than $500 individually or $2,500 in the aggregate; 

 

(16)any employment contract or collective bargaining agreement, written or oral, or modified the terms of any existing such contract or agreement; 

 

(17)any taking of other action or entrance into any other transaction other than in the ordinary course of business, or entrance into any transaction with any insider of RDAR, except as disclosed in this Agreement and any disclosures schedules; 

 

(18)any other event or occurrence that may have or could reasonably be expected to have a material adverse effect on RDAR (whether or not similar to any of the foregoing); or 

 

(19)any agreement, whether in writing or otherwise, to do any of the foregoing. 

 

(h)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by RDAR to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(i)Litigation; Labor Matters; Compliance with Laws. 

 

(1)There is no suit, action or proceeding or investigation pending or, to the knowledge of RDAR, threatened against or affecting RDAR or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR or prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against RDAR having, or which, insofar as reasonably could be foreseen by RDAR, in the future could have, any such effect. 

 

(2)The conduct of the business of RDAR complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 


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(j)Contracts. Except as set forth in Schedule 3.2(j), RDAR has no written or oral contracts, understandings, agreements and other arrangements executed by an officer or duly authorized employee of RDAR or to which RDAR is a party, except for this Agreement. 

 

(k)OTC Markets Reports and Financial Statements. RDAR has filed with OTC Markets all reports and other filings required to be filed by RDAR in accordance with the rules of OTC Markets (the “RDAR OTC Markets Reports”). As of their respective dates, the RDAR OTC Markets Reports complied in all material respects with the applicable requirements of the Securities Act, the Exchange Act and the respective rules and regulations promulgated thereunder applicable to such RDAR OTC Markets Reports and, except to the extent that information contained in any RDAR OTC Markets Report has been revised or superseded by a later RDAR OTC Markets Report filed and publicly available prior to the date of this Agreement, none of the RDAR OTC Markets Reports contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of RDAR included in RDAR OTC Markets Reports were prepared from and are in accordance with the accounting books and other financial records of RDAR, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and presented fairly the consolidated financial position of RDAR as of the dates thereof and the consolidated results of operations and cash flows for the periods then ended. Except as set forth in the RDAR OTC Markets Reports, RDAR has no liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) other than liabilities or obligations incurred in the ordinary course of business. The RDAR OTC Markets Reports accurately disclose (1) the terms and provisions of all stock option plans, (2) transactions with Affiliates and (3) all material contracts. If at any time prior to Closing should RDAR become delinquent in any required filings with OTC Markets, RDAR represents and warrants that such filings shall be brought current in no less than 10 business days from the due date. Until such time as the filing is brought current, RDAR will promptly file any and all reports required to advise the SEC of the failure to file the reports when due. 

 

(l)Board Determination. The Board of Directors of RDAR has unanimously determined that the terms of the Share Exchange are fair to and in the best interests of RDAR and its stockholders. 

 

(m)Required RDAR Share Issuance Approval. RDAR represents that the issuance of the Exchange Shares to the Owner will be in compliance with the Nevada Statutes and the Bylaws of RDAR, as well as federal and state securities laws. 

 

(n)Undisclosed Liabilities. Except as set forth in Schedule 3.2(n), RDAR has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the RDAR OTC Markets Documents incurred in the ordinary course of business. 

 

(o)Full Disclosure. All of the representations and warranties made by RDAR in this Agreement, and all statements set forth in the certificates delivered by RDAR at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by RDAR pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to Acquired Company or its representatives by or on behalf of RDAR in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained  


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therein not misleading.

 

(p)Powers of Attorney. There are no outstanding powers of attorney executed on behalf of RDAR. 

 

Article IV.

Covenants Relating to Conduct of Business Prior to Share Exchange

 

4.1Conduct of Acquired Company and RDAR. From the date of this Agreement and until the Effective Time, or until the prior termination of this Agreement, Acquired Company and RDAR shall not, unless mutually agreed to in writing: 

 

(a)engage in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance upon any of their respective assets or which will not be discharged in full prior to the Effective Time; 

 

(b)sell, assign or otherwise transfer any of their assets, or cancel or compromise any debts or claims relating to their assets, other than for fair value, in the ordinary course of business, and consistent with past practice; 

 

(c)fail to use reasonable efforts to preserve intact their present business organizations, keep available the services of their employees and preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its good will and ongoing business not be impaired prior to the Effective Time; 

 

(d)suffer or permit any material adverse change to occur with respect to Acquired Company and RDAR or their business or assets; and 

 

(e)make any material change with respect to their business in accounting or bookkeeping methods, principles or practices, except as required by GAAP. 

 

4.2Current Information. 

 

(a)During the period from the date of this Agreement to the Closing, each party hereto shall promptly notify each other party of any (1) significant change in its ordinary course of business, (2) proceeding (or communications indicating that the same may be contemplated), or the institution or threat or settlement of proceedings, in each case involving the Parties the outcome of which, if adversely determined, could reasonably be expected to have a material adverse effect on the Party, taken as a whole or (3) event which such Party reasonably believes could be expected to have a material adverse effect on the ability of any party hereto to consummate the Share Exchange. 

 

(b)During the period from the date of this Agreement to the Closing, RDAR shall promptly notify Acquired Company of any correspondence received from OTC Markets or the SEC and shall deliver a copy of such correspondence to Acquired Company within one (1) business day of receipt. 

 

4.3Material Transactions. Prior to the Closing, neither Acquired Company nor RDAR will, without first obtaining the written consent of the other parties hereto: 

 

(a)amend its Articles of Incorporation or Bylaws or enter into any agreement to merge or  


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 14



consolidate with, or sell a significant portion of its assets to, any other Person;

 

(b)place on any of its assets or properties any pledge, charge or other encumbrance, except as otherwise authorized hereunder, or enter into any transaction or make any contract or commitment relating to its properties, assets and business, other than in the ordinary course of business or as otherwise disclosed herein; 

 

(c)guarantee the obligation of any person, firm or corporation, except in the ordinary course of business; 

 

(d)make any loan or advance in excess of $2,500 in the aggregate or cancel or accelerate any material indebtedness owing to it or any claims which it may possess or waive any material rights of substantial value; 

 

(e)violate any applicable law which violation might have a material adverse effect on such party; 

 

(f)except in the ordinary course of business, enter into any agreement or transaction with any of such party’s affiliates; or 

 

(g)engage in any transaction or take any action that would render untrue in any material respect any of the representations and warranties of such party contained in this Agreement, as if such representations and warranties were given as of the date of such transaction or action. 

 

Article V.

Additional Agreements

 

5.1Reorganization Agreement: Mexedia DAC. At or prior to the Closing, RDAR, Mexedia DAC (“Mexedia Ireland”) and the owner of Mexedia Ireland shall have entered into a Share Exchange Agreement, in the form of Exhibit B attached hereto (the “Mexedia Ireland SPA”), pursuant to which RDAR would acquire all of the outstanding shares of capital stock of Mexedia Ireland. 

 

5.2Redemption Agreement. At or prior to the Closing, RDAR and JanBella Group, LLC shall have entered into a Redemption Agreement, in the form of Exhibit C attached hereto (the “Redemption Agreement”), pursuant to which RDAR would re-acquire all outstanding shares of Series E Preferred Stock of RDAR. 

 

5.3Access to Information; Confidentiality. 

 

(a)Acquired Company shall, and shall cause its officers, employees, counsel, financial advisors and other representatives to, afford to RDAR and its representatives reasonable access during normal business hours during the period prior to the Effective Time to its and to Acquired Company’s properties, books, contracts, commitments, personnel and records and, during such period, Acquired Company shall, and shall cause its officers, employees and representatives to, furnish promptly to RDAR all information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request. For the purposes of determining the accuracy of the representations and warranties of RDAR set forth herein and compliance by RDAR of its obligations hereunder, during the period prior to the Effective Time, RDAR shall provide Acquired Company and its representatives with reasonable access during normal business hours to its properties, books, contracts, commitments, personnel and records as may be necessary to enable Acquired Company to confirm the accuracy of the representations and warranties of RDAR  


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 15



set forth herein and compliance by RDAR of its obligations hereunder, and, during such period, RDAR shall, and shall cause its officers, employees and representatives to, furnish promptly to Acquired Company upon its request (1) a copy of each report, schedule, registration statement and other document filed by it during such period pursuant to the requirements of federal or state securities laws and (2) all other information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request.

 

Except as required by law, each of Acquired Company and RDAR will hold, and will cause its respective directors, officers, employees, accountants, counsel, financial advisors and other representatives and affiliates to hold, any nonpublic information in confidence. 

 

(b)No investigation pursuant to this Section 5.3 shall affect any representations or warranties of the parties herein or the conditions to the obligations of the parties hereto. 

 

5.4Best Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Share Exchange and the other transactions contemplated by this Agreement. RDAR and Acquired Company shall mutually cooperate in order to facilitate the achievement of the benefits reasonably anticipated from the Share Exchange. 

 

5.5Public Announcements. RDAR, on the one hand, and Acquired Company, on the other hand, will consult with each other before issuing, and provide each other the opportunity to review and comment upon, any press release or other public statements with respect to the transactions contemplated by this Agreement and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law or court process. The parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement shall be mutually agreed upon prior to the issuance thereof. 

 

5.6Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses. 

 

5.7No Solicitation. Except as previously agreed to in writing by the other party, neither Acquired Company nor RDAR shall authorize or permit any of its officers, directors, agents, representatives, or advisors to solicit, initiate or encourage or take any action to facilitate the submission of inquiries, proposals or offers from any person relating to any matter concerning any exchange, merger, consolidation, business combination, recapitalization or similar transaction involving Acquired Company or RDAR, respectively, other than the transaction contemplated by this Agreement or any other transaction the consummation of which would or could reasonably be expected to impede, interfere with, prevent or delay the Share Exchange or which would or could be expected to dilute the benefits to either Acquired Company or RDAR of the transactions contemplated hereby. Acquired Company or RDAR will immediately cease and cause to be terminated any existing activities, discussions and negotiations with any parties conducted heretofore with respect to any of the foregoing. 

 

Article VI.

Conditions Precedent and Conditions Subsequent

 

6.1Conditions to Each Party’s Obligation to Effect the Share Exchange. The obligation of each party to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 16



(a)No Restraints. No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation of the Share Exchange shall have been issued by any court of competent jurisdiction or any other Governmental Entity having jurisdiction and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted or deemed applicable to the Share Exchange that makes consummation of the Share Exchange illegal. 

 

(b)Governmental Approvals.  

 

(1)As to RDAR and Acquired Company. All authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on RDAR or Acquired Company shall have been obtained, made or occurred. 

 

(2)As to the Owner. All required approvals required by local rules and regulations, stock market rules and regulations and corporate governance requirements, including the issuance of any and all required communications with respect thereto, as well as all other authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on the Owner shall have been obtained, made or occurred. 

 

(c)No Litigation. There shall not be pending or threatened any suit, action or proceeding before any court, Governmental Entity or authority (1) pertaining to the transactions contemplated by this Agreement or (2) seeking to prohibit or limit the ownership or operation by Acquired Company or RDAR, or to dispose of or hold separate any material portion of the business or assets of Acquired Company or RDAR. 

 

6.2Conditions Precedent to Obligations of RDAR. The obligation of RDAR to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of Acquired Company in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and Acquired Company shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by each of them prior to the Effective Time. 

 

(b)Consents. RDAR shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of Acquired Company that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on Acquired Company. 

 

(d)Board Resolutions. RDAR shall have received resolutions duly adopted by Acquired  


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 17



Company’s board of directors approving the execution, delivery, and performance of the Agreement and the transactions contemplated by the Agreement.

 

(e)Other Approvals. RDAR shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. RDAR shall be reasonably satisfied with the results of its due diligence investigation of Acquired Company in its sole and absolute discretion. 

 

6.3Conditions Precedent to Obligation of Acquired Company. The obligation of Acquired Company to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of RDAR in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and RDAR shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it prior to the Effective Time. 

 

(b)Consents. Acquired Company shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of RDAR that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on RDAR. 

 

(d)Board Resolutions. Acquired Company shall have received resolutions duly adopted by RDAR’s board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement. 

 

(e)Other Approvals. Acquired Company shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. Acquired Company shall be reasonably satisfied with the results of its due diligence investigation of RDAR in its sole and absolute discretion. 

 

6.4Conditions Subsequent. 

 

(a)Regulation A Offering. Should RDAR fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before the 20th day following the Closing, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 


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(b)Regulation A Offering Proceeds. Should RDAR fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, the Members shall have the right, but not the obligation, to rescind this Agreement by unanimous written notice to RDAR (the “Rescission Notice”). Upon RDAR’s receipt of the Rescission Notice, this Agreement shall, ipso facto, be rescinded and the Parties returned to their statuses quo ante. 

(c)Divestiture. Should RDAR fail to have divested of its current operations, which divestiture shall include all debts, other than the trade payables of RDAR listed on Exhibit D attached hereto and incorporated herein, of RDAR as of the Closing Date, on or before December 31, 2024, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 

 

Article VII.

Closing

 

7.1RDAR shall make the following deliveries at the Closing. To consummate the transaction, RDAR shall, at the Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit E attached hereto; 

 

(b)Executed written consent of the Board of Directors or RDAR authorizing each of the Change-in-Control Agreement, including this Agreement, and the issuance of the Exchange Shares; 

 

(c)A fully executed Mexedia Ireland SPA; 

 

(d)A fully executed Redemption Agreement; and 

 

(e)The Exchange Shares, in the form of the Exchange Shares Certificate. 

 

7.2Acquired Company and the Owner shall make the following deliveries at the Closing. To consummate the transaction Acquired Company and the Owner shall, at Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit F attached hereto; 

 

(b)A fully executed Mexedia Ireland SPA; and 

 

(c)The Ownership Interest, duly assigned to RDAR. 

 

Article VIII.

Termination, Amendment and Waiver

 

8.1Termination. This Agreement may be terminated and abandoned at any time prior to the Effective Time of the Share Exchange: 

 

(a)by mutual written consent of RDAR and Acquired Company; 

 

(b)by either RDAR or Acquired Company if any Governmental Entity shall have issued an order, decree or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the Share Exchange and such order, decree, ruling or other action shall have become final and non-appealable; 


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 19



(c)by either RDAR or Acquired Company if the Share Exchange shall not have been consummated on or before January 31, 2025 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed at or prior to the Effective Time). 

 

(d)by RDAR, if a material adverse change shall have occurred relative to Acquired Company (and not curable within 10 days); 

 

(e)by Acquired Company if a material adverse change shall have occurred relative to RDAR (and not curable within thirty 10 days); 

 

(f)by RDAR, if Acquired Company willfully fails to perform in any material respect any of its material obligations under this Agreement; or 

 

(g)by Acquired Company, if RDAR willfully fails to perform in any material respect any of its obligations under this Agreement. 

 

8.2Effect of Termination. In the event of termination of this Agreement by either Acquired Company or RDAR as provided in Section 8.1, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of RDAR or Acquired Company, other than the provisions of this Section 8.2. Nothing contained in this Section 8.2 shall relieve any party for any breach of the representations, warranties, covenants or agreements set forth in this Agreement. 

 

8.3Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties upon approval by the party, if such party is an individual, and upon approval of the Board of Director of RDAR and of Acquired Company. 

 

8.4Extension; Waiver. Subject to Section 8.1(c), at any time prior to the Effective Time, the parties may (a) extend the time for the performance of any of the obligations or other acts of the other parties, (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement, or (c) waive compliance with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 

 

8.5Return of Documents. In the event of termination of this Agreement for any reason, RDAR and Acquired Company will return to the other party all of the other party’s documents, work papers, and other materials (including copies) relating to the transactions contemplated in this Agreement, whether obtained before or after execution of this Agreement. RDAR and Acquired Company will not use any information so obtained from the other party for any purpose and will take all reasonable steps to have such other party’s information kept confidential. 

 

Article IX.

Indemnification and Related Matters

 

9.1Survival of Representations and Warranties. The representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement, including any disclosure schedule, shall  


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survive until twelve (12) months after the Effective Time (except for with respect to Taxes, which shall survive for the applicable statute of limitations plus 90 days, and covenants that by their terms survive for a longer period). The right to any remedy based upon such representations and warranties shall not be affected by any investigation conducted with respect to, or any knowledge acquired at any time, whether before or after execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of any such representation or warranty.

 

9.2Indemnification. 

 

(a)RDAR shall indemnify and hold Acquired Company and Acquired Company’s officers and directors (“Acquired Company Representatives”) harmless for, from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever) (collectively, “Losses”) to which RDAR may become subject resulting from or arising out of any breach of a representation, warranty or covenant made by RDAR as set forth herein. 

 

(b)Acquired Company shall indemnify and hold RDAR and RDAR’s officers and directors (“RDAR’s Representatives”) harmless for, from and against any and all Losses to which RDAR or RDAR’s Representatives may become subject resulting from or arising out of (1) any breach of a representation, warranty or covenant made by Acquired Company as set forth herein; or (2) any and all liabilities arising out of or in connection with: (A) any of the assets of Acquired Company prior to the Closing; or (B) the operations of Acquired Company prior to the Closing. 

 

9.3Notice of Indemnification. Promptly after the receipt by any indemnified party (the “Indemnitee”) of notice of the commencement of any action or proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto is or may be made against any indemnifying party (the “Indemnifying Party”) pursuant to this Article IX, give such Indemnifying Party written notice of the commencement of such action or proceeding and give such Indemnifying Party a copy of such claim and/or process and all legal pleadings in connection therewith. The failure to give such notice shall not relieve any Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. Such Indemnifying Party shall have, upon request within thirty (30) days after receipt of such notice, but not in any event after the settlement or compromise of such claim, the right to defend, at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any such matter involving the asserted liability of the Indemnitee; provided, however, that if the Indemnitee determines that there is a reasonable probability that a claim may materially and adversely affect it, other than solely as a result of money payments required to be reimbursed in full by such Indemnifying Party under this Article IX or if a conflict of interest exists between Indemnitee and the Indemnifying Party, the Indemnitee shall have the right to defend, compromise or settle such claim or suit; and, provided, further, that such settlement or compromise shall not, unless consented to in writing by such Indemnifying Party, which shall not be unreasonably withheld, be conclusive as to the liability of such Indemnifying Party to the Indemnitee. In any event, the Indemnitee, such Indemnifying Party and its counsel shall cooperate in the defense against, or compromise of, any such asserted liability, and in cases where the Indemnifying Party shall have assumed the defense, the Indemnitee shall have the right to participate in the defense of such asserted liability at the Indemnitee’s own expense. In the event that such Indemnifying Party shall decline to participate in or assume the defense of such action, prior to paying or settling any claim against which such Indemnifying Party is, or may be, obligated under this Article IX to indemnify an Indemnitee, the Indemnitee shall first supply such Indemnifying Party with a copy of a final court judgment or decree holding the Indemnitee liable on such claim or, failing such judgment or decree, the terms and conditions of the  


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settlement or compromise of such claim. An Indemnitee’s failure to supply such final court judgment or decree or the terms and conditions of a settlement or compromise to such Indemnifying Party shall not relieve such Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. If the Indemnifying Party is defending the claim as set forth above, the Indemnifying Party shall have the right to settle the claim only with the consent of the Indemnitee.

 

Article X.

General Provisions

 

10.1Notices. Any and all notices and other communications hereunder shall be in writing and shall be deemed duly given to the party to whom the same is so delivered, sent or mailed at addresses and contact information set forth below (or at such other address for a party as shall be specified by like notice.) Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be deemed given and effective on the earliest of: (a) on the date of transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth on the signature pages attached hereto prior to 5:30 p.m. (Eastern Time) on a business day, (b) on the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (Eastern Time) on any business day, (c) on the second business day following the date of mailing, if sent by a nationally recognized overnight courier service, or (d) if by personal delivery, upon actual receipt by the party to whom such notice is required to be given. 

 

If to RDAR prior to Closing:

7950 East Redfield Road, Unit 210

Scottsdale, AZ 85260 

 

If to Acquired Company:

1680 Michigan Avenue, Suite 700

Miami Beach, Florida 33139 

 

If to the Owner:

Via di Affogalasino, 105 - 00148 Roma RM

 

10.2Definitions. For purposes of this Agreement: 

 

(a)an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person; 

 

(b)“material adverse change” or “material adverse effect” means, when used in connection with Acquired Company or RDAR, any change or effect that either individually or in the aggregate with all other such changes or effects is materially adverse to the business, assets, properties, condition (financial or otherwise) or results of operations of such party and its subsidiaries taken as a whole (after giving effect in the case of RDAR to the consummation of the Share Exchange); 

 

(c)“person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity; and 

 

(d)a “subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its  


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 22



board of Directors or other governing body (or, if there are no such voting interests, fifty percent (50%) or more of the equity interests of which) is owned directly or indirectly by such first person.

 

10.3Interpretation. When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 

 

10.4Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other agreements referred to herein constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement. This Agreement is not intended to confer upon any person other than the parties any rights or remedies. 

 

10.5Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. 

 

10.6Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. 

 

10.7Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court of the United States located in the State of Nevada, this being in addition to any other remedy to which they are entitled at law or in equity. In addition, each of the parties hereto (a) agrees that it will not attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court, and (b) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any state court other than such court. 

 

10.8Severability. Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein. 

 

10.9Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement. This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “ Electronic Delivery “), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other party hereto shall re-execute original forms hereof and deliver them in person to all other parties. No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any  


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 23



signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity.

 

10.10Attorneys’ Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of this Agreement, the parties hereto agree that the prevailing party or parties shall be entitled to recover from the other party or parties upon final judgment on the merits reasonable attorneys’ fees, including attorneys’ fees for any appeal, and costs incurred in bringing such suit or proceeding. 

 

 

 

 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 24



[ SIGNATURE PAGE TO SHARE EXCHANGE AGREEMENT ]

 

 

IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Agreement as of the date first above written. 

 

RDAR:ACQUIRED COMPANY: 

 

RAADR, INC.MEXEDIA INC. 

 

 

By: /s/ Jacob DiMartinoBy: /s/ Orlando Taddeo 

Jacob DiMartinoOrlando Taddeo 

Chief Executive OfficerPresident 

E-Mail: jacob.d@raadr.comE-Mail: otaddeo@mexedia.com 

 

OWNER: 

 

MEXEDIA S.p.A. S.B. 

 

 

By: /s/ Orlando Taddeo 

Orlando Taddeo 

President 

E-Mail: otaddeo@mexedia.com 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 25



EXHIBIT A

 

Certificate of Designation of Series F Preferred Stock

 

 

 

TERMS OF SERIES F PREFERRED STOCK

 

Section 1. Designation, Amount and Par Value. The series of Preferred Stock shall be designated as Series F Preferred Stock (the “Series F Preferred Stock”) and the number of shares so designated shall be Seventy-Five Thousand (75,000). Each share of the Series F Preferred Stock shall have a par value of $0.001. 

 

Section 2. Fractional Shares. The Series F Preferred Stock may be issued in fractional shares. 

 

Section 3. Voting Rights. The holders of the Series F Preferred Stock shall, as a class, have rights in all matters requiring shareholder approval to a number of votes equal to two (2) times the sum of: 

 

(a)The total number of shares of Company common stock (the “Common Stock”) which are issued and outstanding at the time of any election or vote by the shareholders; plus 

 

(b)The number of votes allocated to shares of Preferred Stock issued and outstanding of any other class that shall have voting rights. 

 

Section 4. Dividends. The holders of the Series F Preferred Stock shall not be entitled to receive dividends paid on the Common Stock. 

 

Section 5. Liquidation. The holders of the Series F Preferred Stock shall not be entitled to any liquidation preference. 

 

Section 6. Conversion and Adjustments. 

 

(a)Conversion Rate. The Series F Preferred Stock shall be convertible into shares of the Company’s common stock, as follows: 

 

Each share of Series F Preferred Stock shall be convertible at any time into a number of shares of Common Stock that equals one-thousandth of one percent (0.001%) of the number of issued and outstanding shares of the Common Stock outstanding on the date of conversion, such that 1,000 shares of Series F Preferred Stock would convert into one percent (1%) of the number of issued and outstanding shares of the Common Stock outstanding on the date of conversion (the “Conversion Rate”). 

 

(b)No Partial Conversion. A holder of shares of Series F Preferred Stock shall be required to convert all of such holder’s shares of Series F Preferred Stock, should any such holder exercise his, her or its rights of conversion. 

 

(c)Adjustment for Merger and Reorganization, etc. If there shall occur any reorganization, recapitalization, reclassification, consolidation or merger (a “Reorganization Event”) involving the Company in which the Common Stock (but not the Series F Preferred Stock) is converted into or exchanged for securities, cash or other property, then each share of Series F Preferred Stock shall be deemed to have been converted into shares of the Common Stock at the Conversion Rate. 

 

Section 7. Protection Provisions. So long as any shares of Series F Preferred Stock are outstanding, the Company shall not, without first obtaining the majority written consent of the holders of Series F Preferred Stock, alter or change the rights, preferences or privileges of the Series F Preferred Stock so as to affect adversely the holders of Series F Preferred Stock. 

 

Section 8. Waiver. Any of the rights, preferences or privileges of the holders of the Series F Preferred Stock may be waived by the affirmative consent or vote of the holders of at least a majority of the shares of Series F Preferred Stock then outstanding. 

 

Section 9. No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series F Preferred Stock shall have no other rights, privileges or preferences with respect to the Series F Preferred Stock. 


MEXEDIA, INC. SHARE EXCHANGE AGREEMENT   |   PAGE 26



EXHIBIT B

 

Form of Mexedia Ireland SPA

 

 

 

SHARE EXCHANGE AGREEMENT

 

This Share Exchange Agreement (this “Agreement”) is entered into as of this ____ day of September, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Mexedia DAC, a Republic of Ireland corporation (“Acquired Company”), and Mexedia S.p.A. S.B., the owner of Acquired Company (the “Owner”). 

 

RECITALS

 

WHEREAS, this Agreement is one of a series of agreements that would, when consummated, result in the Company’s (a) having acquired businesses and assets valued in excess of USD$60,000,000 and (b) having undergone a change in control (collectively, the “Change-in-Control Agreements”); and

 

WHEREAS, the Boards of Directors of RDAR, Acquired Company and the Owner have determined that an acquisition of all of the issued and outstanding shares of capital stock of Acquired Company by RDAR through a share exchange upon the terms and subject to the conditions set forth in this Agreement (the “Share Exchange”) would be in the best interests of RDAR, Acquired Company and the Owner; and

 

WHEREAS, and the Boards of Directors of RDAR and Acquired Company have each approved the Share Exchange; and

 

WHEREAS, this Agreement is under consideration by the Board of Directors of the Owner for formal determination and approval; and

 

WHEREAS, pursuant to the Share Exchange, all of the right, title and interest in and to all of the issued and outstanding shares of capital stock of Acquired Company (the “Ownership Interest”) will be exchanged for 30,000 shares of Series F Preferred Stock of RDAR, the Certificate of Designation of which is attached hereto as Exhibit A, including the common stock into which such shares may be converted (the “Exchange Shares”); and

 

WHEREAS, RDAR, Acquired Company and the Owner desire to make certain representations, warranties, covenants and agreements in connection with the Share Exchange and also to prescribe various conditions to the Share Exchange.

 

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows: 

 

Article I.

The Exchange

 

1.1Share Exchange. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Nevada Revised Statutes (the “Nevada Statutes”), at the Closing (defined below), the parties shall do the following: 

 

(a)Acquired Company shall cause the Owner to convey, assign and transfer the Ownership Interest to RDAR by delivering to RDAR duly executed assignments in proper form for transfer. The Ownership Interest transferred to RDAR at the Closing shall constitute 100% of the issued and outstanding shares of capital stock of Acquired Company. 

 

(b)As consideration for its acquisition of the Ownership Interest, RDAR shall issue the Exchange Shares to the Owner by delivering a book entry record to the Owner evidencing the Exchange Shares (the “Exchange Shares Certificate”). 

 

1.2Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VIII, the closing date of the Exchange (the “Closing”) will take place on the business day upon satisfaction of the conditions set forth in Article VI (or as soon as practicable thereafter following satisfaction or waiver of the conditions set forth in Article VI) (the “Closing Date”), at such time and location as may be agreed upon by RDAR and Acquired Company; provided, however, that the Closing shall take place no later than January 31, 2025. 

 

1.3Reorganization. 

 

(a)As of the Closing, Jacob DiMartino shall resign as RDAR’s sole director and officer and Orlando Taddeo shall be appointed as the sole director and officer of RDAR. 




(b)If at any time after the Closing, any party shall consider that any further deeds, assignments, conveyances, agreements, documents, instruments or assurances in law or any other things are necessary or desirable to vest, perfect, confirm or record in RDAR the title to any property, rights, privileges, powers and franchises of Acquired Company by reason of, or as a result of, the Share Exchange, or otherwise to carry out the provisions of this Agreement, the remaining parties, as applicable, shall execute and deliver, upon request, any instruments or assurances, and do all other things necessary or proper to vest, perfect, confirm or record title to such property, rights, privileges, powers and franchises in RDAR, and otherwise to carry out the provisions of this Agreement. 

 

Article II.

Compliance with Applicable Securities Laws

 

2.1Covenants, Representations and Warranties of the Owner. 

 

(a)The Owner acknowledges and agrees that it is acquiring the Exchange Shares for investment purposes and will not offer, sell or otherwise transfer, pledge or hypothecate any of the Exchange Shares issued to them (other than pursuant to an effective Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”)), directly or indirectly unless: 

 

(1)the sale is to RDAR; or 

 

(2)the Exchange Shares are sold in a transaction that does not require registration under the Securities Act, or any applicable United States state laws and regulations governing the offer and sale of securities, and the seller has furnished to RDAR an opinion of counsel to that effect or such other written opinion as may be reasonably required by RDAR. 

 

(b)The Owner acknowledges and agrees that the book entry record representing the Exchange Shares shall bear a restrictive legend, substantially in the following form: 

 

“THE SECURITIES REPRESENTED BY THIS STOCK CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS, AND SHALL NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED (WHETHER OR NOT FOR CONSIDERATION) BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.”

 

(c)The Owner represents and warrants that it: 

 

(1)is not aware of any advertisement of, or other form or general solicitation with respect to, any of the Exchange Shares being issued hereunder; 

 

(2)acknowledges and agrees that RDAR will refuse to register any transfer of the Exchange Shares not made pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act and in accordance with applicable state and provincial securities laws; and 

 

(3)acknowledges and agrees to RDAR making a notation on its records or giving instructions to the registrar and transfer agent of RDAR in order to implement the restrictions on transfer set forth and described herein. 

 

Article III.

Representations and Warranties

 

3.1Representations and Warranties of Acquired Company and the Owner. As a material inducement for RDAR to enter into this Agreement and to consummate the transactions contemplated hereby, Acquired Company and the Owner hereby make the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by RDAR regardless of any investigation made or information obtained by RDAR (unless and to the extent specifically and expressly waived in writing by RDAR on or before the Closing Date): 

 

(a)Organization, Standing and Power; No Disability. Acquired Company is duly organized, validly existing and in good standing under the laws of the Republic of Ireland. The Owner is duly organized, validly existing and in good standing under the laws of its organization. 

 

(b)Subsidiaries. Acquired Company does not own, directly or indirectly, any equity or other ownership interest in any company, corporation, partnership, joint venture or otherwise. 

 

(c)Corporate Documents. Schedule 3.1(c) contains true and correct copies of the Articles of Incorporation and bylaws of Acquired Company, each as amended to date. 

 

(d)Ownership Interest. The Ownership Interest represents 100% of the issued and outstanding shares of capital stock of  




Acquired Company. Acquired Company also warrants that there are no outstanding bonds, debentures, notes or other indebtedness or other securities of Acquired Company. There are no rights, commitments, agreements, arrangements or undertakings of any kind to which Acquired Company is a party or by which it is bound obligating Acquired Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional ownership interests of Acquired Company or obligating Acquired Company to issue, grant, extend or enter into any such right, commitment, agreement, arrangement or undertaking. There are no outstanding contractual obligations, commitments, understandings or arrangements of Acquired Company to repurchase, redeem or otherwise acquire or make any payment in respect of the capital stock of Acquired Company.

 

(e)Capitalization of Acquired Company. Schedule 3(e) sets forth the issued and outstanding shares of capital stock of Acquired Company (the Ownership Interest). All of Acquired Company’s issued and outstanding shares of capital stock have been duly authorized, are validly issued, fully paid and non-assessable. 

 

(f)Authority; Non-contravention. Acquired Company and the Owner have all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Acquired Company and its Owner and the consummation by Acquired Company and the Owner of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary action on the part of Acquired Company. This Agreement has been duly executed and when delivered by Acquired Company and the Owner shall constitute a valid and binding obligation of Acquired Company and the Owner, enforceable against Acquired Company and the Owner, as applicable, in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of Acquired Company under, (1) the articles of incorporation or bylaws of Acquired Company, (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to Acquired Company, its properties or assets, or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to Acquired Company, its properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to Acquired Company or could not prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement. 

 

(g)Governmental Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any United States court, administrative agency or commission, or other federal, state or local government or other governmental authority, agency, domestic or foreign (a “Governmental Entity”), is required by or with respect to Acquired Company in connection with the execution and delivery of this Agreement by Acquired Company or the consummation by Acquired Company of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Securities Act or the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder (the “Exchange Act”) or pursuant to the rules of OTC Markets. 

 

(h)Financial Statements. 

 

(1)At Closing, RDAR will have received from Acquired Company a copy of its unaudited financial statements for the years ended December 31, 2023 and 2022, and for the six months ended June 30, 2024 (collectively, the “Acquired Company Financial Statements”). The Acquired Company Financial Statements fairly present the financial condition of Acquired Company at the dates indicated and its results of operations and cash flows for the periods then ended and, except as indicated therein, reflect all claims, debts and liabilities of Acquired Company, fixed or contingent, and of whatever nature. 

 

(2)Since June 30, 2024, there has been no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operations or prospects, of Acquired Company, whether as a result of any legislative or regulatory change, revocation of any license or rights to do business, fire, explosion, accident, casualty, labor trouble, flood, drought, riot, storm, condemnation, act of God, public force or otherwise and no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operation or prospects, of Acquired Company except in the ordinary course of business. 

 

(3)Since June 30, 2024, Acquired Company has not issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise dispose of, any securities of Acquired Company, and has not granted or agreed to grant any other right to subscribe for or to purchase any securities of Acquired Company or has incurred or agreed to incur any indebtedness for borrowed money. 

 

(i)Absence of Certain Changes or Events. Since June 30, 2024, Acquired Company has conducted its business only in the ordinary course consistent with past practice, and there is not and has not been any: 

 

(1)material adverse change with respect to Acquired Company including any amendments to its formation and governance documents; 

 

(2)event which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 4.1 without prior consent of RDAR; 

 

(3)condition, event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement; 




(4)incurrence, assumption or guarantee by Acquired Company of any indebtedness for borrowed money other than in the ordinary course and in amounts and on terms consistent with past practices or as disclosed to RDAR in writing; 

 

 

(5)creation or other incurrence by Acquired Company of any lien on any asset other than in the ordinary course consistent with past practices; 

 

(6)transaction or commitment made, or any contract or agreement entered into, by Acquired Company relating to its assets or business (including the acquisition or disposition of any assets) or any relinquishment by Acquired Company of any contract or other right, in either case, material to Acquired Company, other than transactions and commitments in the ordinary course consistent with past practices and those contemplated by this Agreement; 

 

(7)labor dispute, other than routine, individual grievances, or, to the knowledge of Acquired Company, any activity or proceeding by a labor union or representative thereof to organize any employees of Acquired Company or any lockouts, strikes, slowdowns, work stoppages or threats by or with respect to such employees; 

 

(8)payment, prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due; 

 

(9)write-offs or write-downs of any assets of Acquired Company; 

 

(10)creation, termination or amendment of, or waiver of any right under, any material contract of Acquired Company; 

 

(11)damage, destruction or loss having, or reasonably expected to have, a material adverse effect on Acquired Company; 

 

(12)other condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse effect or give rise to a material adverse change with respect to Acquired Company; or 

 

(13)agreement or commitment to do any of the foregoing. 

 

(j)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by Acquired Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(k)Litigation; Labor Matters; Compliance with Laws. 

 

(1)Except as set forth in Schedule 3(k)(1), there is no suit, action or proceeding or investigation pending or, to the knowledge of Acquired Company, threatened against or affecting Acquired Company or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to Acquired Company or prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against Acquired Company having, or which, insofar as reasonably could be foreseen by Acquired Company, in the future could have, any such effect. 

 

(2)Acquired Company is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike, work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material adverse effect with respect to Acquired Company. 

 

(3)The conduct of the business of Acquired Company complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 

 

(l)Benefit Plans. Acquired Company is not a party to any Benefit Plan under which Acquired Company currently has an obligation to provide benefits to any current or former employee, officer or director of Acquired Company. As used herein, “Benefit Plan” shall mean any employee benefit plan, program, or arrangement of any kind, including any defined benefit or defined contribution plan, ownership plan with respect to any membership interest, executive compensation program or arrangement, bonus plan, incentive compensation plan or arrangement, profit sharing plan or arrangement, deferred compensation plan, agreement or arrangement, supplemental retirement plan or arrangement, vacation pay, sickness, disability, or death benefit plan (whether provided through insurance, on a funded or unfunded basis, or otherwise), medical or life insurance plan providing benefits to employees, retirees, or former employees or any of their dependents, survivors, or beneficiaries, severance pay, termination, salary continuation, or employee assistance plan. 

 

(m)Tax Returns and Tax Payments. 

 

(1)Acquired Company has timely filed with the appropriate taxing authorities all Tax Returns, as that term is  




hereinafter defined, required to be filed by it (taking into account all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes, as that term is hereinafter defined, due and owing by Acquired Company have been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). Acquired Company is not currently the beneficiary of any extension of time within which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to Acquired Company by a taxing authority in a jurisdiction where Acquired Company does not fileTax Returns that it is or may be subject to taxation by that jurisdiction. Since inception, Acquired Company has not incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice.

 

(2)No material claim for unpaid Taxes has been made or become a lien against the property of Acquired Company or is being asserted against Acquired Company, no audit of any Tax Return of Acquired Company is being conducted by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by Acquired Company and is currently in effect. Acquired Company has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party. 

 

(3)As used herein, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts imposed by any governmental authority, domestic or foreign. As used herein, “ Tax Return “ shall mean any return, report or statement required to be filed with any governmental authority with respect to Taxes. 

 

(n)Environmental Matters. Acquired Company is in compliance with all Environmental Laws in all material respects. Acquired Company has not received any written notice regarding any violation of any Environmental Laws, as that term is hereinafter defined, including any investigatory, remedial or corrective obligations. Acquired Company holds all permits and authorizations required under applicable Environmental Laws, unless the failure to hold such permits and authorizations would not have a material adverse effect on Acquired Company, and is in compliance with all terms, conditions and provisions of all such permits and authorizations in all material respects. No releases of Hazardous Materials, as that term is hereinafter defined, have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by Acquired Company or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property which could result in any liability to Acquired Company. Acquired Company has not transported or arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to Acquired Company. Acquired Company has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a material adverse effect on Acquired Company. There are no past, pending or threatened claims under Environmental Laws against Acquired Company and Acquired Company is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against Acquired Company pursuant to Environmental Laws. “Environmental Laws” means all applicable foreign, federal, state and local statutes, rules, regulations, ordinances, orders, decrees and common law relating in any manner to contamination, pollution or protection of human health or the environment, and similar state laws. “Hazardous Material” means any toxic, radioactive, corrosive or otherwise hazardous substance, including petroleum, its derivatives, by-products and other hydrocarbons, or any substance having any constituent elements displaying any of the foregoing characteristics, which in any event is regulated under any Environmental Law. 

 

(o)Material Contracts. All Material Contracts copies of which have been furnished to RDAR. Acquired Company is not, or has not received any notice or has any knowledge that any other party is, in default in any respect under any Material Contract, as that term is hereinafter defined; and there has not occurred any event that with the lapse of time or the giving of notice or both would constitute such a material default. 

 

For purposes of this Agreement, a “Material Contract” means any contract, agreement or commitment that is effective as of the Closing Date to which Acquired Company is a party (1) with expected receipts or expenditures in an amount in excess of two percent (2%) of Acquired Company’s gross revenues for the 12 months ended July 31, 2025, (2) requiring Acquired Company to indemnify any person in an amount that is expected to exceed ten percent (10%) of Acquired Company’s owners’ equity as of the date of Closing, (3) granting exclusive rights to any party, (4) evidencing indebtedness for borrowed or loaned money in an amount in excess of ten percent (10%) of Acquired Company’s owners’ equity, including guarantees of such indebtedness, as of the date of Closing, or (5) which, if breached by Acquired Company in such a manner would (A) permit any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages (either individually or in the aggregate with all other such claims under that contract) from Acquired Company or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any such contract, agreement or commitment. 

 

(p)Properties. Acquired Company has no real property. Any facilities held under lease by Acquired Company is held by it under valid, subsisting and enforceable leases of which Acquired Company is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect. 

 

(q)Intellectual Property. 

 

(1)As used in this Agreement, the term “Trademarks” means trademarks, service marks, trade names, internet domain names, designs, slogans, and general intangibles of like nature; the term “Trade Secrets” means technology; trade secrets and other confidential information, know-how, proprietary processes, formulae, algorithms, models, and methodologies; the term “ Intellectual Property “ means patents, copyrights, Trademarks, applications for any of the foregoing, and Trade Secrets; the term “ Company License Agreements “ means any license agreements granting any right to use or practice any rights under any Intellectual Property (except for such agreements for off-the-shelf products that are generally available for less than $10,000), and any written settlements relating to any Intellectual Property, to which Acquired Company is a party or otherwise bound; and the term “ Software “ means any and all computer programs, including any and all software  




implementations of algorithms, models and methodologies, whether in source code or object code.

 

(2)Acquired Company owns or has valid rights to use the Trademarks, trade names, domain names, copyrights, patents, logos, licenses and computer software programs (including, without limitation, the source codes thereto) that are necessary for the conduct of its respective businesses as now being conducted. To the knowledge of Acquired Company, none of Acquired Company’s Intellectual Property or License Agreements infringe upon the rights of any third party that may give rise to a cause of action or claim against Acquired Company or its successors. 

 

(r)Affiliate Transactions. Except as set forth in Schedule 3(r), no officer, director or employee of Acquired Company or any member of the immediate family of any such officer, director or employee, or any entity in which any of such persons owns any beneficial interest (other than any publicly-held corporation whose stock is traded on a national securities exchange or in the over-the-counter market and less than one percent of the stock of which is beneficially owned by any of such persons), has any agreement with Acquired Company or any interest in any of their property of any nature, used in or pertaining to the business of Acquired Company. None of the foregoing persons has any direct or indirect interest in any competitor, supplier or customer of Acquired Company or in any person from whom or to whom Acquired Company leases any property or transacts business of any nature. 

 

(s)Undisclosed Liabilities. Except as set forth in Schedule 3(s), Acquired Company has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise.) 

 

(t)Full Disclosure. All of the representations and warranties made by Acquired Company in this Agreement, and all statements set forth in the certificates delivered by Acquired Company at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by Acquired Company pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to RDAR or its representatives by or on behalf of any of Acquired Company or its affiliates in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading. 

 

3.2Representations and Warranties of RDAR. As a material inducement for Acquired Company and the Owner to enter into this Agreement and to consummate the transactions contemplated hereby, RDAR hereby makes the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by Acquired Company regardless of any investigation made or information obtained by Acquired Company (unless and to the extent specifically and expressly waived in writing by Acquired Company on or before the Closing Date): 

 

(a)Organization, Standing and Corporate Power. RDAR is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power and authority and all government licenses, authorizations, permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted. RDAR is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect with respect to RDAR. 

 

(b)Subsidiaries. RDAR has no subsidiaries. 

 

(c)Capitalization of RDAR. The entire authorized capital stock of RDAR consists of 15,000,000,000 common shares, par value $0.001 per share, of which 4,433,149,661 shares are issued and outstanding, and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and 1,000,000 shares of which are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and no shares of which are issued and outstanding. All of RDAR’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 

 

Except as set forth in Schedule 3.2(c), there are no other shares of RDAR capital stock issuable upon the exercise of outstanding warrants, convertible notes, options or otherwise. Except as set forth in Schedule 3.2(c), no shares of capital stock or other equity securities of RDAR are issued, reserved for issuance or outstanding. 

 

The Exchange Shares will be, when issued, duly authorized, validly issued, fully paid and non-assessable, not subject to preemptive rights and issued in compliance with all applicable state and federal laws concerning the issuance of securities. 

 

(d)Corporate Authority; Non-contravention. RDAR has all requisite corporate and other power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by RDAR and the consummation by RDAR of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary corporate action on the part of RDAR. This Agreement has been duly executed and when delivered by RDAR shall constitute a valid and binding obligation of RDAR, enforceable against RDAR in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to loss of a material benefit under, or result in the creation  




of any lien upon any of the properties or assets of RDAR under (1) its articles of incorporation, bylaws, or other charter documents; (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to RDAR,its properties or assets; or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to RDAR, its properties or assets, other than, in the case of clauses (2) and (3), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to RDAR or could not prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement.

 

(e)Government Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any Governmental Entity, is required by or with respect to RDAR in connection with the execution and delivery of this Agreement by RDAR, or the consummation by RDAR of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Nevada Statutes, the Securities Act or the Exchange Act. 

 

(f)Financial Statements. 

 

(1)The unaudited financial statements of RDAR included in the reports, schedules, forms, statements and other documents filed by RDAR with OTC Markets (collectively, and in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “RDAR Financial Information”) comply as to form in all material respects with applicable accounting requirements and the published rules of OTC Markets with respect thereto, have been prepared in accordance with U.S. generally accepted accounting principles applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the consolidated financial position of RDAR and its consolidated subsidiaries as of the dates thereof and the consolidated results of operations and changes in cash flows for the periods then ended. Except as set forth in the RDAR Financial Information, at the date of the most recent unaudited financial statements of RDAR included in the RDAR Financial Information, RDAR has not incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR. 

 

(2)RDAR has made the following financial information (the RDAR Financial Information) available to Acquired Company: 

 

(A)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the years ended December 31, 2023 and 2022; 

 

(B)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the six months ended June 30, 2024 (the “RDAR Interim Statements”); and 

 

(C)The RDAR Financial Information presents fairly the financial condition of RDAR as of such dates and the results of operations of RDAR for such periods, in accordance with GAAP and are consistent with the books and records of RDAR (which books and records are correct and complete). 

 

(g)Events Subsequent to RDAR Interim Statements. Since the date of the RDAR Interim Statements, there has not been, occurred or arisen, with respect to RDAR: 

 

(1)any change or amendment in its Articles of Incorporation and/or Bylaws; 

 

(2)any reclassification, split-up or other change in, or amendment of or modification to, the rights of the holders of any of its capital stock, except changes made in relation to the transactions contemplated by this Agreement; 

 

(3)any direct or indirect redemption, purchase or acquisition by any person of any of its capital stock or of any interest in or right to acquire any such stock; 

 

(4)any issuance, sale, or other disposition of any capital stock, or any grant of any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any capital stock; 

 

(5)any declaration, set aside, or payment of any dividend or any distribution with respect to its capital stock (whether in cash or in kind) or any redemption, purchase, or other acquisition of any of its capital stock; 

 

(6)the organization of any subsidiary or the acquisition of any shares of capital stock by any person or any equity or ownership interest in any business; 

 

(7)any damage, destruction or loss of any of its properties or assets whether or not covered by insurance; 

 

(8)any sale, lease, transfer or assignment of any of its assets, tangible or intangible, other than for a fair consideration in the ordinary course of business; 

 

(9)the execution of, or any other commitment to any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) outside the ordinary course of business; 




(10)any acceleration, termination, modification, or cancellation of any agreement, contract lease or license (or series of related agreements, contracts, leases, and licenses) involving more than $10,000 to which it is a party or by which it is bound; 

 

(11)any security interest or encumbrance imposed upon any of its assets, tangible; 

 

(12)any capital investment in, any loan to, or any acquisition of the securities or assets of, any other person or entity (or series of related capital investments, loans and acquisitions) involving more than $2,500 and outside the ordinary course of business; 

 

(13)any issuance of any note, bond or other debt security, or created, incurred, assumed, or guaranteed any indebtedness for borrowed money or capitalized lease obligation involving more than $2,500; 

 

(14)any delay or postponement of the payment of accounts payable or other liabilities; 

 

 

(15)any loan to, or any entrance into any other transaction with, any of its directors, officers and employees either involving more than $500 individually or $2,500 in the aggregate; 

 

(16)any employment contract or collective bargaining agreement, written or oral, or modified the terms of any existing such contract or agreement; 

 

(17)any taking of other action or entrance into any other transaction other than in the ordinary course of business, or entrance into any transaction with any insider of RDAR, except as disclosed in this Agreement and any disclosures schedules; 

 

(18)any other event or occurrence that may have or could reasonably be expected to have a material adverse effect on RDAR (whether or not similar to any of the foregoing); or 

 

(19)any agreement, whether in writing or otherwise, to do any of the foregoing. 

 

(h)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by RDAR to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(i)Litigation; Labor Matters; Compliance with Laws. 

 

(1)There is no suit, action or proceeding or investigation pending or, to the knowledge of RDAR, threatened against or affecting RDAR or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR or prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against RDAR having, or which, insofar as reasonably could be foreseen by RDAR, in the future could have, any such effect. 

 

(2)The conduct of the business of RDAR complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 

 

(j)Contracts. Except as set forth in Schedule 3.2(j), RDAR has no written or oral contracts, understandings, agreements and other arrangements executed by an officer or duly authorized employee of RDAR or to which RDAR is a party, except for this Agreement. 

 

(k)OTC Markets Reports and Financial Statements. RDAR has filed with OTC Markets all reports and other filings required to be filed by RDAR in accordance with the rules of OTC Markets (the “RDAR OTC Markets Reports”). As of their respective dates, the RDAR OTC Markets Reports complied in all material respects with the applicable requirements of the Securities Act, the Exchange Act and the respective rules and regulations promulgated thereunder applicable to such RDAR OTC Markets Reports and, except to the extent that information contained in any RDAR OTC Markets Report has been revised or superseded by a later RDAR OTC Markets Report filed and publicly available prior to the date of this Agreement, none of the RDAR OTC Markets Reports contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of RDAR included in RDAR OTC Markets Reports were prepared from and are in accordance with the accounting books and other financial records of RDAR, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and presented fairly the consolidated financial position of RDAR as of the dates thereof and the consolidated results of operations and cash flows for the periods then ended. Except as set forth in the RDAR OTC Markets Reports, RDAR has no liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) other than liabilities or obligations incurred in the ordinary course of business. The RDAR OTC Markets Reports accurately disclose (1) the terms and provisions of all stock option plans, (2) transactions with Affiliates and (3) all material contracts. If, at any time prior to Closing, should RDAR become delinquent in any required filings with OTC Markets, RDAR represents and warrants that such filings shall be brought current in no less than 10 business days from the due date. Until such time as the filing is brought current, RDAR will promptly file any and all reports required to advise the OTC Markets of the failure to file the reports when due. 

 

(l)Board Determination. The Board of Directors of RDAR has unanimously determined that the terms of the Share  




Exchange are fair to and in the best interests of RDAR and its shareholders.

 

(m)Required RDAR Share Issuance Approval. RDAR represents that the issuance of the Exchange Shares to the Owner will be in compliance with the Nevada Statutes and the Bylaws of RDAR, as well as federal and state securities laws. 

 

(n)Undisclosed Liabilities. Except as set forth in Schedule 3.2(n), RDAR has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the RDAR OTC Markets Documents incurred in the ordinary course of business. 

 

(o)Full Disclosure. All of the representations and warranties made by RDAR in this Agreement, and all statements set forth in the certificates delivered by RDAR at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by RDAR pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to Acquired Company or its representatives by or on behalf of RDAR in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading. 

 

(p)Powers of Attorney. There are no outstanding powers of attorney executed on behalf of RDAR. 

 

Article IV. 

Covenants Relating to Conduct of Business Prior to Share Exchange 

 

4.1Conduct of Acquired Company and RDAR. From the date of this Agreement and until the Effective Time, or until the prior termination of this Agreement, Acquired Company and RDAR shall not, unless mutually agreed to in writing: 

 

(a)engage in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance upon any of their respective assets or which will not be discharged in full prior to the Effective Time; 

 

(b)sell, assign or otherwise transfer any of their assets, or cancel or compromise any debts or claims relating to their assets, other than for fair value, in the ordinary course of business, and consistent with past practice; 

 

(c)fail to use reasonable efforts to preserve intact their present business organizations, keep available the services of their employees and preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its good will and ongoing business not be impaired prior to the Effective Time; 

 

(d)suffer or permit any material adverse change to occur with respect to Acquired Company and RDAR or their business or assets; and 

 

(e)make any material change with respect to their business in accounting or bookkeeping methods, principles or practices, except as required by GAAP. 

 

4.2Current Information. 

 

(a)During the period from the date of this Agreement to the Closing, each party hereto shall promptly notify each other party of any (1) significant change in its ordinary course of business, (2) proceeding (or communications indicating that the same may be contemplated), or the institution or threat or settlement of proceedings, in each case involving the Parties the outcome of which, if adversely determined, could reasonably be expected to have a material adverse effect on the Party, taken as a whole or (3) event which such Party reasonably believes could be expected to have a material adverse effect on the ability of any party hereto to consummate the Share Exchange. 

 

(b)During the period from the date of this Agreement to the Closing, RDAR shall promptly notify Acquired Company of any correspondence received from OTC Markets or the SEC and shall deliver a copy of such correspondence to Acquired Company within one (1) business day of receipt. 

 

4.3Material Transactions. Prior to the Closing, neither Acquired Company nor RDAR will, without first obtaining the written consent of the other parties hereto: 

 

(a)amend its Articles of Incorporation or Bylaws or enter into any agreement to merge or consolidate with, or sell a significant portion of its assets to, any other Person; 

 

(b)place on any of its assets or properties any pledge, charge or other encumbrance, except as otherwise authorized hereunder, or enter into any transaction or make any contract or commitment relating to its properties, assets and business, other than in the ordinary course of business or as otherwise disclosed herein; 

 

(c)guarantee the obligation of any person, firm or corporation, except in the ordinary course of business; 




(d)make any loan or advance in excess of $2,500 in the aggregate or cancel or accelerate any material indebtedness owing to it or any claims which it may possess or waive any material rights of substantial value; 

 

(e)violate any applicable law which violation might have a material adverse effect on such party; 

 

(f)except in the ordinary course of business, enter into any agreement or transaction with any of such party’s affiliates; or 

 

(g)engage in any transaction or take any action that would render untrue in any material respect any of the representations and warranties of such party contained in this Agreement, as if such representations and warranties were given as of the date of such transaction or action. 

 

Article V.

Additional Agreements

 

5.1Reorganization Agreement: Mexedia Inc. At or prior to the Closing, RDAR, Mexedia Inc. (“US Mexedia”) and the owner of US Mexedia shall have entered into a Share Exchange Agreement, in the form of Exhibit B attached hereto (the “US Mexedia SPA”), pursuant to which RDAR would acquire all of the outstanding shares of capital stock of US Mexedia. 

 

5.2Redemption Agreement. At or prior to the Closing, RDAR and JanBella Group, LLC shall have entered into a Redemption Agreement, in the form of Exhibit C attached hereto (the “Redemption Agreement”), pursuant to which RDAR would re-acquire all outstanding shares of Series E Preferred Stock of RDAR. 

 

5.3Access to Information; Confidentiality. 

 

(a)Acquired Company shall, and shall cause its officers, employees, counsel, financial advisors and other representatives to, afford to RDAR and its representatives reasonable access during normal business hours during the period prior to the Effective Time to its and to Acquired Company’s properties, books, contracts, commitments, personnel and records and, during such period, Acquired Company shall, and shall cause its officers, employees and representatives to, furnish promptly to RDAR all information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request. For the purposes of determining the accuracy of the representations and warranties of RDAR set forth herein and compliance by RDAR of its obligations hereunder, during the period prior to the Effective Time, RDAR shall provide Acquired Company and its representatives with reasonable access during normal business hours to its properties, books, contracts, commitments, personnel and records as may be necessary to enable Acquired Company to confirm the accuracy of the representations and warranties of RDAR set forth herein and compliance by RDAR of its obligations hereunder, and, during such period, RDAR shall, and shall cause its officers, employees and representatives to, furnish promptly to Acquired Company upon its request (1) a copy of each report, schedule, registration statement and other document filed by it during such period pursuant to the requirements of federal or state securities laws and (2) all other information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request. 

 

Except as required by law, each of Acquired Company and RDAR will hold, and will cause its respective directors, officers, employees, accountants, counsel, financial advisors and other representatives and affiliates to hold, any nonpublic information in confidence. 

 

(b)No investigation pursuant to this Section 5.3 shall affect any representations or warranties of the parties herein or the conditions to the obligations of the parties hereto. 

 

5.4Best Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Share Exchange and the other transactions contemplated by this Agreement. RDAR and Acquired Company shall mutually cooperate in order to facilitate the achievement of the benefits reasonably anticipated from the Share Exchange. 

 

5.5Public Announcements. RDAR, on the one hand, and Acquired Company, on the other hand, will consult with each other before issuing, and provide each other the opportunity to review and comment upon, any press release or other public statements with respect to the transactions contemplated by this Agreement and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law or court process. The parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement shall be mutually agreed upon prior to the issuance thereof. 

 

5.6Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses. 

 

5.7No Solicitation. Except as previously agreed to in writing by the other party, neither Acquired Company nor RDAR shall authorize or permit any of its officers, directors, agents, representatives, or advisors to solicit, initiate or encourage or take any action to facilitate the submission of inquiries, proposals or offers from any person relating to any matter concerning any exchange, merger, consolidation, business combination, recapitalization or similar transaction involving Acquired Company or RDAR, respectively, other than the transaction contemplated by this Agreement or any other transaction the consummation of which would or could reasonably be expected to impede, interfere with, prevent or delay the Share Exchange or which would or could be expected to dilute the benefits to either Acquired Company or RDAR of the transactions contemplated hereby. Acquired Company or RDAR will immediately cease and cause to be terminated any existing activities, discussions and  




negotiations with any parties conducted heretofore with respect to any of the foregoing.

 

Article VI.

Conditions Precedent and Conditions Subsequent

 

6.1Conditions to Each Party’s Obligation to Effect the Share Exchange. The obligation of each party to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)No Restraints. No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation of the Share Exchange shall have been issued by any court of competent jurisdiction or any other Governmental Entity having jurisdiction and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted or deemed applicable to the Share Exchange that makes consummation of the Share Exchange illegal. 

 

(b)Governmental Approvals.  

 

(1)As to RDAR and Acquired Company. All authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on RDAR or Acquired Company shall have been obtained, made or occurred. 

 

(2)As to the Owner. All required approvals required by local rules and regulations, stock market rules and regulations and corporate governance requirements, including the issuance of any and all required communications with respect thereto, as well as all other authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on the Owner shall have been obtained, made or occurred. 

 

(c)No Litigation. There shall not be pending or threatened any suit, action or proceeding before any court, Governmental Entity or authority (1) pertaining to the transactions contemplated by this Agreement or (2) seeking to prohibit or limit the ownership or operation by Acquired Company or RDAR, or to dispose of or hold separate any material portion of the business or assets of Acquired Company or RDAR. 

 

6.2Conditions Precedent to Obligations of RDAR. The obligation of RDAR to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of Acquired Company in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and Acquired Company shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by each of them prior to the Effective Time. 

 

(b)Consents. RDAR shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of Acquired Company that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on Acquired Company. 

 

(d)Board Resolutions. RDAR shall have received resolutions duly adopted by Acquired Company’s board of directors and the Owner’s board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement. 

 

(e)Other Approvals. RDAR shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. RDAR shall be reasonably satisfied with the results of its due diligence investigation of Acquired Company in its sole and absolute discretion. 

 

6.3Conditions Precedent to Obligation of Acquired Company. The obligation of Acquired Company to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of RDAR in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made  




and on and as of the Closing Date, and RDAR shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it prior to the Effective Time.

 

(b)Consents. Acquired Company shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of RDAR that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on RDAR. 

 

(d)Board Resolutions. Acquired Company shall have received resolutions duly adopted by RDAR’s board of directors and the Owner’s board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement. 

 

(e)Other Approvals. Acquired Company shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. Acquired Company shall be reasonably satisfied with the results of its due diligence investigation of RDAR in its sole and absolute discretion. 

 

6.4Conditions Subsequent. 

 

(a)Regulation A Offering. Should RDAR fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before the 20th day following the Closing, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 

 

(b)Regulation A Offering Proceeds. Should RDAR fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, the Members shall have the right, but not the obligation, to rescind this Agreement by unanimous written notice to RDAR (the “Rescission Notice”). Upon RDAR’s receipt of the Rescission Notice, this Agreement shall, ipso facto, be rescinded and the Parties returned to their statuses quo ante. 

 

(c)Divestiture. Should RDAR fail to have divested of its current operations, which divestiture shall include all debts, other than the trade payables of RDAR listed on Exhibit D attached hereto and incorporated herein, of RDAR as of the Closing Date, on or before December 31, 2024, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 

 

Article VII.

Closing

 

7.1RDAR shall make the following deliveries at the Closing. To consummate the transaction, RDAR shall, at the Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit E attached hereto; 

 

(b)Executed written consent of the Board of Directors or RDAR authorizing each of the Change-in-Control Agreement, including this Agreement, and the issuance of the Exchange Shares; 

 

(c)A fully executed US Mexedia SPA; 

 

(d)A fully executed Redemption Agreement; and 

 

(e)The Exchange Shares, in the form of the Exchange Shares Certificate. 

 

7.2Acquired Company and the Owner shall make the following deliveries at the Closing. To consummate the transaction Acquired Company and the Owner shall, at Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit F attached hereto; 

 

(b)A fully executed US Mexedia SPA; and 

 

(c)The Ownership Interest, duly assigned to RDAR. 




Article VIII.

Termination, Amendment and Waiver

 

8.1Termination. This Agreement may be terminated and abandoned at any time prior to the Effective Time of the Share Exchange: 

 

(a)by mutual written consent of RDAR and Acquired Company; 

 

(b)by either RDAR or Acquired Company if any Governmental Entity shall have issued an order, decree or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the Share Exchange and such order, decree, ruling or other action shall have become final and non-appealable; 

 

(c)by either RDAR or Acquired Company if the Share Exchange shall not have been consummated on or before January 31, 2025 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed at or prior to the Effective Time). 

 

(d)by RDAR, if a material adverse change shall have occurred relative to Acquired Company (and not curable within 10 days); 

 

(e)by Acquired Company if a material adverse change shall have occurred relative to RDAR (and not curable within thirty 10 days); 

 

(f)by RDAR, if Acquired Company willfully fails to perform in any material respect any of its material obligations under this Agreement; or 

 

(g)by Acquired Company, if RDAR willfully fails to perform in any material respect any of its obligations under this Agreement. 

 

8.2Effect of Termination. In the event of termination of this Agreement by either Acquired Company or RDAR as provided in Section 8.1, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of RDAR or Acquired Company, other than the provisions of this Section 8.2. Nothing contained in this Section 8.2 shall relieve any party for any breach of the representations, warranties, covenants or agreements set forth in this Agreement. 

 

8.3Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties upon approval by the party, if such party is an individual, and upon approval of the Board of Director of RDAR and of Acquired Company. 

 

8.4Extension; Waiver. Subject to Section 8.1(c), at any time prior to the Effective Time, the parties may (a) extend the time for the performance of any of the obligations or other acts of the other parties, (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement, or (c) waive compliance with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 

 

8.5Return of Documents. In the event of termination of this Agreement for any reason, RDAR and Acquired Company will return to the other party all of the other party’s documents, work papers, and other materials (including copies) relating to the transactions contemplated in this Agreement, whether obtained before or after execution of this Agreement. RDAR and Acquired Company will not use any information so obtained from the other party for any purpose and will take all reasonable steps to have such other party’s information kept confidential. 

 

Article IX.

Indemnification and Related Matters

 

9.1Survival of Representations and Warranties. The representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement, including any disclosure schedule, shall survive until twelve (12) months after the Effective Time (except for with respect to Taxes, which shall survive for the applicable statute of limitations plus 90 days, and covenants that by their terms survive for a longer period). The right to any remedy based upon such representations and warranties shall not be affected by any investigation conducted with respect to, or any knowledge acquired at any time, whether before or after execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of any such representation or warranty. 

 

9.2Indemnification. 

 

(a)RDAR shall indemnify and hold Acquired Company and Acquired Company’s officers and directors (“Acquired Company Representatives”) harmless for, from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever) (collectively, “Losses”) to which RDAR may become subject resulting from or arising out of any breach of a representation, warranty or covenant made by RDAR as set forth herein. 

 

(b)Acquired Company shall indemnify and hold RDAR and RDAR’s officers and directors (“RDAR’s Representatives”)  




harmless for, from and against any and all Losses to which RDAR or RDAR’s Representatives may become subject resulting from or arising out of (1) any breach of a representation, warranty or covenant made by Acquired Company as set forth herein; or (2) any and all liabilities arising out of or in connection with: (A) any of the assets of Acquired Company prior to the Closing; or (B) the operations of Acquired Company prior to the Closing.

 

9.3Notice of Indemnification. Promptly after the receipt by any indemnified party (the “Indemnitee”) of notice of the commencement of any action or proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto is or may be made against any indemnifying party (the “Indemnifying Party”) pursuant to this Article IX, give such Indemnifying Party written notice of the commencement of such action or proceeding and give such Indemnifying Party a copy of such claim and/or process and all legal pleadings in connection therewith. The failure to give such notice shall not relieve any Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. Such Indemnifying Party shall have, upon request within thirty (30) days after receipt of such notice, but not in any event after the settlement or compromise of such claim, the right to defend, at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any such matter involving the asserted liability of the Indemnitee; provided, however, that if the Indemnitee determines that there is a reasonable probability that a claim may materially and adversely affect it, other than solely as a result of money payments required to be reimbursed in full by such Indemnifying Party under this Article IX or if a conflict of interest exists between Indemnitee and the Indemnifying Party, the Indemnitee shall have the right to defend, compromise or settle such claim or suit; and, provided, further, that such settlement or compromise shall not, unless consented to in writing by such Indemnifying Party, which shall not be unreasonably withheld, be conclusive as to the liability of such Indemnifying Party to the Indemnitee. In any event, the Indemnitee, such Indemnifying Party and its counsel shall cooperate in the defense against, or compromise of, any such asserted liability, and in cases where the Indemnifying Party shall have assumed the defense, the Indemnitee shall have the right to participate in the defense of such asserted liability at the Indemnitee’s own expense. In the event that such Indemnifying Party shall decline to participate in or assume the defense of such action, prior to paying or settling any claim against which such Indemnifying Party is, or may be, obligated under this Article IX to indemnify an Indemnitee, the Indemnitee shall first supply such Indemnifying Party with a copy of a final court judgment or decree holding the Indemnitee liable on such claim or, failing such judgment or decree, the terms and conditions of the settlement or compromise of such claim. An Indemnitee’s failure to supply such final court judgment or decree or the terms and conditions of a settlement or compromise to such Indemnifying Party shall not relieve such Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. If the Indemnifying Party is defending the claim as set forth above, the Indemnifying Party shall have the right to settle the claim only with the consent of the Indemnitee. 

 

Article X.

General Provisions

 

10.1Notices. Any and all notices and other communications hereunder shall be in writing and shall be deemed duly given to the party to whom the same is so delivered, sent or mailed at addresses and contact information set forth below (or at such other address for a party as shall be specified by like notice.) Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be deemed given and effective on the earliest of: (a) on the date of transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth on the signature pages attached hereto prior to 5:30 p.m. (Eastern Time) on a business day, (b) on the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (Eastern Time) on any business day, (c) on the second business day following the date of mailing, if sent by a nationally recognized overnight courier service, or (d) if by personal delivery, upon actual receipt by the party to whom such notice is required to be given. 

 

If to RDAR prior to Closing:

7950 East Redfield Road, Unit 210

Scottsdale, AZ 85260 

 

If to Acquired Company:

17 Clanwilliam Square, Grand Canal Quay

Dublin 2 D02 DH98, Republic of Ireland 

 

If to the Owner:

Via di Affogalasino, 105  -  00148 Roma RM

 

10.2Definitions. For purposes of this Agreement: 

 

(a)an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person; 

 

(b)“material adverse change” or “material adverse effect” means, when used in connection with Acquired Company or RDAR, any change or effect that either individually or in the aggregate with all other such changes or effects is materially adverse to the business, assets, properties, condition (financial or otherwise) or results of operations of such party and its subsidiaries taken as a whole (after giving effect in the case of RDAR to the consummation of the Share Exchange); 

 

(c)“person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity; and 

 

(d)a “subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or  




voting partnership interests of which is sufficient to elect at least a majority of its board of Directors or other governing body (or, if there are no such voting interests, fifty percent (50%) or more of the equity interests of which) is owned directly or indirectly by such first person.

 

10.3Interpretation. When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 

 

10.4Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other agreements referred to herein constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement. This Agreement is not intended to confer upon any person other than the parties any rights or remedies. 

 

10.5Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. 

 

10.6Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. 

 

10.7Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court of the United States located in the State of Nevada, this being in addition to any other remedy to which they are entitled at law or in equity. In addition, each of the parties hereto (a) agrees that it will not attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court, and (b) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any state court other than such court. 

 

10.8Severability. Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein. 

 

10.9Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement. This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “ Electronic Delivery “), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other party hereto shall re-execute original forms hereof and deliver them in person to all other parties. No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity. 

 

10.10Attorneys’ Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of this Agreement, the parties hereto agree that the prevailing party or parties shall be entitled to recover from the other party or parties upon final judgment on the merits reasonable attorneys’ fees, including attorneys’ fees for any appeal, and costs incurred in bringing such suit or proceeding. 

 

IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Agreement as of the date first above written. 

 

RDAR:ACQUIRED COMPANY: 

 

RAADR, INC.MEXEDIA DAC 

 

EXEMPLAREXEMPLAR 

By: __________________________By: __________________________ 

Jacob DiMartinoOrlando Taddeo 

Chief Executive OfficerPresident 

E-Mail: jacob.d@raadr.comE-Mail: otaddeo@mexedia.com 

 

OWNER: 

 

MEXEDIA S.p.A. S.B. 

 

EXEMPLAR 

By: __________________________ 

Orlando Taddeo 




President 

E-Mail: otaddeo@mexedia.com 




EXHIBIT C

 

Form of Redemption Agreement

 

 

 

REDEMPTION AGREEMENT

 

This Agreement (the “Agreement”) is made as of September ___, 2024, by and between Raadr, Inc., a Nevada corporation (the “Issuer”), and JanBella Group, LLC, a stockholder of the Issuer (“Seller”). 

 

RECITALS

 

WHEREAS, Seller is the owner of 1,000,000 shares of the Issuer’s Series E Preferred Stock, par value $0.001 per share (“Subject Preferred Stock”); and

 

WHEREAS, Seller desires to sell to the Issuer, and the Issuer desires to re-purchase and redeem from Seller, the Subject Preferred Stock, which shall result in the re-purchase and redemption by the Issuer of the Subject Preferred Stock, on and subject to the terms of this Agreement.

 

NOW, THEREFORE, the parties hereto hereby agree as follows: 

 

1.Sale of the Shares. Subject to the terms and conditions of this Agreement, and in reliance upon the representations, warranties, covenants and agreements contained in this Agreement, Seller shall sell to the Issuer the Subject Preferred Stock, and the Issuer shall re-purchase and redeem the Subject Preferred Stock from Seller, for the purchase price set forth in Exhibit A attached hereto and incorporated herein by this reference (the “Purchase Price”). 

 

2.Right to Rescind. If the Acquisition Agreements (defined below) are rescinded in accordance with their respective terms or if the Issuer defaults on the Redemption Note (as defined in Exhibit A), then Seller shall have the right, but not the obligation, to rescind this Agreement by written notice to the Issuer. Should Seller so rescind this Agreement, the Issuer shall, without delay, re-issue the Subject Preferred Stock to Seller and Seller shall retain any and all amounts paid to Seller under the Redemption Note (as defined in Exhibit A) as liquidated damages. 

 

3.Condition Precedent. As a condition precedent to the Closing (defined below) of this Agreement, Seller and Mexedia S.p.A. S.B., as guarantor of the Note,  of the Note, shall have entered into a pledge agreement (the “Pledge Agreement”), in the form of Exhibit B attached hereto, and a guaranty (the “Guaranty”), in the form of Exhibit C attached hereto. The Pledge Agreement and the Guaranty are to become binding agreement upon the consummation of the Acquisition Agreements. 

 

4.Closing. 

 

(a)The purchase and sale of the Subject Preferred Stock shall take place at a closing (the “Closing”), to occur immediately following the effectiveness of the acquisition transactions (the “Acquisitions”) contemplated by those certain share exchange agreements, dated as of September ___, 2024, by and between (1) the Issuer, Mexedia, Inc. and its shareholder and (2) the Issuer, Mexedia DAC an its shareholder (collectively, the “Acquisition Agreements”). The parties hereto shall have no obligation to complete the Closing in the event all of the Acquisition Agreements are not consummated contemporaneously. 

 

(b)At the Closing: 

 

(1)Seller shall deliver to the Issuer book-entry statements representing the shares of Subject Preferred Stock, duly endorsed in form for transfer to the Issuer. 

 

(2)The Issuer shall have delivered a fully executed Pledge Agreement and a fully executed Guaranty. 

 

(3)The Issuer shall pay to Seller the Purchase Price, as set forth in Exhibit A

 

(4)At, and at any time after, the Closing, Seller shall duly execute, acknowledge and deliver all such further assignments, conveyances, instruments and documents, and shall take such other action consistent with the terms of this Agreement to carry out the transactions contemplated by this Agreement, as may be requested by the Issuer. 

 

5.Representations and Warranties.  

 

(a)Of Seller. Seller makes the following representations and warranties to the Issuer with respect to Seller and the Subject Preferred Stock to be sold by Seller hereunder: 

 

(1)Seller is domiciled in the United States of America. 




(2)Seller is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”). 

 

(3)Seller has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out its obligations hereunder. 

 

(4)Seller owns the Subject Preferred Stock free and clear of any and all options, liens, claims, encumbrances, security interests, pledges, preemptive rights, rights of first refusal and adverse interests of any kind. Seller agrees that the consideration payable by the Issuer for the re-purchase and redemption of the Subject Preferred Stock is fair and reasonable and that Seller is in the best position to evaluate and determine the fair value of the Subject Preferred Stock. There are no restrictions on the transfer or redemption of the Subject Preferred Stock (other than restrictions under the Securities Act or state securities laws). No person or entity has any right to purchase the Subject Preferred Stock or any portion thereof or interest therein. 

 

(5)Seller has received and reviewed the Acquisition Agreements and understands and consents to the transactions contemplated thereby. Seller has been afforded the opportunity during the course of negotiating the transactions contemplated by this Agreement to ask questions of, and to secure such information from, the Issuer and its officers and directors with regard to each of the Issuer and Mexedia S.p.A. S.B., the owner of Mexedia, Inc. and Mexedia DAC, as it deems necessary to evaluate the merits of consenting to the Issuer’s consummating such transactions, it being understood that Seller is the controlling stockholder of the Issuer and, as such, is intimately familiar with the Issuer and its business, operations, assets, liabilities, prospects and financial condition in all respects. All such questions, if asked, were answered satisfactorily and all information or documents provided were found to be satisfactory. 

 

(6)There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to Seller’s knowledge, threatened against Seller or any of its properties. There is no judgment, decree or order against Seller that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. 

 

(7)No bankruptcy, receivership or debtor relief proceedings are pending or, to Seller’s knowledge, threatened against Seller. 

 

(8)All representations, covenants and warranties of Seller contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though the same had been made on and as of such date. 

 

(b)Of the Issuer. The Issuer makes the following representations and warranties to Seller: 

 

(1)The Board of Directors has authorized the Issuer’s entering into this Agreement and consummating the transactions contemplated hereby and otherwise to carry out its obligations hereunder. 

 

(2)The Issuer is in good standing in the State of Nevada and in every other jurisdiction in which it engages in business. 

 

(3)There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Issuer’s knowledge, threatened against the Issuer or any of its properties. There is no judgment, decree or order against the Issuer that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. 

 

(4)No bankruptcy, receivership or debtor relief proceedings are pending or, to the Issuer’s knowledge, threatened against the Issuer. 

 

(5)All representations, covenants and warranties of the Issuer contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though the same had been made on and as of such date. 

 

6.Termination by Mutual Agreement. This Agreement may be terminated at any time by mutual consent of the parties hereto, provided that such consent to terminate is in writing and is signed by each of the parties hereto. 

 

7.Release. Seller, on its own behalf and, to the extent of its legal authority, on behalf of its successors, assigns, heirs, next-of-kin, representatives, administrators, executors, partners, agents and affiliates, and any other person claiming by, through or under any of the foregoing (individually, a “Releasing Party”, and, collectively, “Releasing Parties”), hereby unconditionally and irrevocably releases, waives and forever discharges, effective as of the Closing hereunder, the Issuer, Phone Match, LLC, including its members, Mexedia, Inc., including its shareholder, and Mexedia DAC, including its shareholder, and each of their past and present respective officers, directors, employees, stockholders, predecessors, successors, assigns, partners, subsidiaries and affiliates (individually, a “Released Party”, and, collectively, “Released Parties”) from any and all claims, obligations, contracts, agreements, rights, debts, covenants and liabilities (including attorneys’ fees and costs) of any nature whatsoever, whether fixed or contingent, known or unknown, suspected or claimed to exist or unsuspected, regardless of whether knowledge of the unknown or unsuspected claim would have materially affected Seller’s decision to enter into this Agreement, both at law and in equity, arising directly or indirectly from any act, omission, event, or transaction occurring (or any facts or circumstances existing) on or prior to the Closing hereunder, but excluding claims for breach by the Issuer of any provision of this Agreement. 




8.Miscellaneous. 

 

(a)Entire Agreement. This Agreement constitutes the entire agreement of the parties, superseding and terminating any and all prior or contemporaneous oral and written agreements, understandings or letters of intent between or among the parties, with respect to the subject matter of this Agreement. No part of this Agreement may be modified or amended, nor may any right be waived, except by a written instrument which expressly refers to this Agreement, states that it is a modification or amendment of this Agreement and is signed by the parties to this Agreement, or, in the case of waiver, by the party granting the waiver. No course of conduct or dealing or trade usage or custom and no course of performance shall be relied on or referred to by any party to contradict, explain or supplement any provision of this Agreement, it being acknowledged by the parties to this Agreement that this Agreement is intended to be, and is, the complete and exclusive statement of the agreement with respect to its subject matter. Any waiver shall be limited to the express terms thereof and shall not be construed as a waiver of any other provisions or the same provisions at any other time or under any other circumstances. 

 

(b)Severability. If any section, term or provision of this Agreement shall to any extent be held or determined to be invalid or unenforceable, the remaining sections, terms and provisions shall nevertheless continue in full force and effect. 

 

(c)Notices. All notices provided for in this Agreement shall be in writing signed by the party giving such notice, and delivered personally or sent by overnight courier, mail or messenger against receipt thereof or sent by registered or certified mail, return receipt requested, or by facsimile transmission or similar means of communication if receipt is confirmed or if transmission of such notice is confirmed by mail as provided in this Section 6(c). Notices shall be deemed to have been received on the date of personal delivery or e-email or attempted delivery. Notice shall be delivered to the parties at the following addresses: 

 

If to the Issuer:

7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260.

 

If to Seller:20311 Chartwell Center Drive, Suite 1469, Cornelius, North Carolina 28031. 

 

Either party may, by like notice, change the address, person or telecopier number to which notice shall be sent. 

 

(d)Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of North Carolina or in the federal courts located in the state and City of Charlotte, North Carolina. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Issuer and the Seller waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement, any agreement or any other document delivered in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

(e)Successors. This Agreement shall be binding upon the parties and their respective heirs, executors, administrators, legal representatives, successors and assigns; provided, however, that neither party may assign this Agreement or any of its rights under this Agreement without the prior written consent of the other party. 

 

(f)Further Assurances. Each party to this Agreement agrees, without cost or expense to any other party, to deliver or cause to be delivered such other documents and instruments as may be reasonably requested by any other party to this Agreement in order to carry out more fully the provisions of, and to consummate the transaction contemplated by, this Agreement. 

 

(g)Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement and any documents relating to it may be executed and transmitted to any other party by facsimile or email of a PDF, which facsimile or PDF shall be deemed to be, and utilized in all respects as, an original, wet-inked document. 

 

(h)No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties with the advice of counsel to express their mutual intent, and no rules of strict construction will be applied against any party. 

 

(i)Headings. The headings in the Sections of this Agreement are inserted for convenience only and shall not constitute a part of this Agreement. 

 

[ SIGNATURE PAGE FOLLOWS ]




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. 

 

ISSUER:SELLER: 

 

RAADR, INC.JANBELLA GROUP, LLC 

 

 

EXEMPLAREXEMPLAR 

By: _______________________By: _______________________ 

Jacob DiMartinoWilliam Alessi 

Chief Executive Officer 

Managing Member 

 

 

 

EXHIBIT A

 

Purchase Price of Subject Preferred Stock

 

Due to the difficulty in establishing a value for the businesses to be acquired by the Issuer in the Acquisitions, the Issuer and Seller have agreed to a minimum Purchase Price of $540,000.00 (the “Minimum Price”) and a maximum Purchase Price of $1,800,000.00 (the “Maximum Price”) for the Subject Preferred Stock. The Purchase Price shall be paid by the Issuer’s delivery of a secured promissory note (the  “Redemption Note”), in the form of Annex I attached to this Exhibit A. 

 

 

 

ANNEX I

 

Form of Redemption Note

 

 

 

NEITHER THE ISSUANCE NOR THE SALE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

 

SECURED PROMISSORY NOTE

 

Principal Amount: $540,000.00Issue Date: September ___, 2024 

 

Raadr, Inc., a Nevada corporation (“Maker”), promises to pay to JanBella Group, LLC (“Holder”) the principal sum of Five Hundred Forty Thousand Dollars ($540,000.00) (the “Principal Balance”), together with interest accrued thereon calculated at the rate of eight percent (8%) per annum (the “Interest”), all as set forth herein (the “Note”).  

 

The Principal Balance and accrued Interest shall be due and payable, as follows: 

 

(A)within three (3) business days from the end of each calendar month during which Maker shall have received proceeds (each a “Monthly Reg A Tranche”) under Maker’s next-filed Offering Statement on Form 1-A (the “Regulation A Offering”), Maker shall pay Holder an amount that equals forty percent (40%) of each Monthly Reg A Tranche amount that exceeds $100,000, with each such payment being applied first to accrued Interest and then to the Principal Balance of this Note, until such time as all accrued Interest and the Principal Balance shall have been paid in full; and 

 

(B)in any event, on or before September ___, 2025 (the “Maturity Date”). 

 

Following the date of payment in full of the Principal Balance and all accrued Interest thereon (the “Balance Date”), Maker further promises to pay to Holder up to an additional $1,260,000 as additional principal (the “Additional Principal”). In this regard, within three (3) business days from Maker’s receipt of a Monthly Reg A Tranche after the Balance Date, Maker shall pay Holder an amount that equals ten percent (10%) of each Monthly Reg A Tranche amount that exceeds $100,000, until such time as all of the Additional Principal has been paid. Further, and in addition to the provisions of the foregoing sentence, for a period of 18 months immediately following the Issue Date, within three (3) business days from Maker's receipt of any third-party funding (the "Sourced Funding"), whether in the from of debt and/or equity, Maker shall pay Holder an amount that equals ten percent (10%) of the Sourced Funding amount, until such time as all of the Additional Principal has been paid. Maker shall incur no penalty for its failing to pay the Addition Principal amount in full. 

 

Upon a default by Maker hereunder, the then-outstanding Principal Balance shall thereafter bear interest thereon at eighteen percent (18%) per annum (the “Default Rate”) until the past due amount, including interest at the Default Rate, shall have been paid in full. 

 

In the event any payment called for by this Note would result in the violation of applicable usury laws, then any amount paid in excess of the maximum amount on interest allowed by law shall be applied towards a reduction of the outstanding principal balance. 

 

The obligations of this Note are secured by (a) that certain Pledge Agreement dated as of the Issue Date among Holder, as lender, and Heritage Ventures Ltd., Gianluca Benedetti and Adama GmbH, as guarantors, and (b) that certain Guaranty dated as of the Issue Date among Holder, as lender, and Heritage Ventures Ltd., Gianluca Benedetti and Adama GmbH, as guarantors. 




The occurrence of any one or more of the following events shall constitute a default under this Note: 

 

(a)failure of Maker to file the Regulation A Offering within twenty (20) days from the Issue Date of this Note; 

(b)failure of Maker to make any payment when due under this Note, with a grace period of two (2) business days; 

 

(c)the filing of any petition under federal bankruptcy law or any similar federal or state statute by or against Maker; 

 

(d)an application for the appointment of a receiver for, the making of a general assignment for the benefit of creditors by, or the insolvency of Maker; 

 

(e)the validity or enforceability of this Note is contested by Maker; or  

 

(f)Maker denies that it has any or any further liability or obligation hereunder. 

 

This Note is and shall be deemed to have been made and delivered in the State of North Carolina and in all respects shall be governed and construed in accordance with the laws of that State. 

 

This Note shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of North Carolina or in the federal courts located in the City of Charlotte, State of North Carolina. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

The word “Maker” shall include Maker’s representatives, successors and assigns and the word “Holder” shall include Holder’s representatives, successors and assigns. 

 

Maker and all endorsers of this Note hereby waive presentment for payment, demand for payment, notice of non-payment and dishonor, protest, and notice of protest; consent to any renewals, extensions and partial payments of this Note or the indebtedness for which it is given without notice to them, and consent that no such renewals, extensions or partial payments shall discharge any party hereto from liability hereon in whole or in part.  

 

If this Note shall be placed with an attorney for collection, Maker, endorsers and guarantors agree to pay all costs of collection, including reasonable attorneys’ fees which shall be added to the amount due under this Note and shall be recoverable with the amount due under this Note and shall be a lien on any collateral securing this Note. 

 

Maker acknowledges and agrees that sufficient consideration has passed to render this Note valid and enforceable and waives any claim based on inadequate consideration. 

 

IN WITNESS WHEREOF, Maker has executed this Note as of the date first above set forth.  

 

RAADR, INC. 

 

EXEMPLAR 

By: ___________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

EXHIBIT B

 

Form of Pledge Agreement

 

 

 

PLEDGE AGREEMENT

 

This Pledge Agreement (the “Agreement”) is made and entered as of September  ___, 2024, by and among Mexedia S.p.A. S.B. (“Guarantor”), JanBella Group, LLC, a North Carolina limited liability company (“Lender”), and the undersigned holder of the pledged shares (“Pledge Holder”). 

 

RECITALS

 

Raadr, Inc., a Nevada corporation (the “Company”), issued a Secured Promissory Note, dated as of the date of this Agreement (the “Redemption Note”) to Lender, whereby the Company owes payment obligations to Lender.

 

Guarantor has agreed to secure the Company’s payment obligations to Lender under the Redemption Note with a guaranty and a pledge of, and thereby create a security interest in favor of Lender in, a total of 75,000 shares of Series F Preferred Stock of the Company (the “Shares”), the Shares representing 100% of the issued and outstanding shares of Series F Preferred Stock of the Company.




AGREEMENT

 

1.Security Interest. Guarantor hereby grants to Lender a security interest in (a) the Shares, (b) all Dividends (as defined below), and (c) all Additional Securities (as defined below); to secure payment of the Redemption Note and performance of all Guarantor’s obligations under this Agreement. For purposes of this Agreement, the Shares, all Dividends and all Additional Securities will be collectively referred to as the “Collateral”. If any stock dividend, reclassification, readjustment, stock split or other change is declared or made with respect to the Collateral, or if warrants or any other rights, options or securities are issued in respect of the Collateral (“Additional Securities”), then all new, substituted and/or additional shares or other securities issued by reason of such change or by reason of the exercise of such warrants, rights, options or securities, will be (if delivered to Guarantor, immediately surrendered to Lender care of the Pledge Holder and) pledged to Lender to be held under the terms of this Agreement as and in the same manner as the Collateral is held hereunder. 

 

2.Appointment of the Pledge Holder. Guarantor and Lender hereby designate and appoint the Pledge Holder as such for the purposes hereinafter set forth. Guarantor hereby deposits with the Pledge Holder (a) the Shares, as are represented by the book entry statement in the name of Guarantor, (b) the original Stock Power, copies of which are attached hereto as Exhibit A, and (c) documentation waiving the Medallion Signature Guaranty requirement signed by the Company and Manhattan Transfer Registrar Co., in form satisfactory to Lender. 

 

3.Rights and Obligations of the Pledge Holder.  

 

(a)Guarantor and Lender hereby authorize the Pledge Holder to keep and preserve the Shares in its possession pending payment in full of the Redemption Note. If a default occurs under the terms of this Agreement or the Redemption Note, then Lender shall provide written notice to Guarantor and the Company specifying the default and shall, subject to Section 3(b) hereof, have the right to direct the Pledge Holder to transfer the Shares to the Lender or its designee if Guarantor and/or the Company has not cured the default within 15 days after receipt of the notice. In such event, the Pledge Holder, acting as agent of Lender, shall, with respect to the Shares, exercise the rights and duties of a Secured Party under the Uniform Commercial Code as enacted in Nevada (the “UCC”), and under any other applicable law as the same may, from time to time, be in effect. Guarantor agrees that any notice by Pledge Holder concerning the sale, disposition or other intended action in connection with the Shares, whether required by the UCC, or otherwise shall constitute reasonable notice to Guarantor if such notice is mailed by registered mail or certified mail, return receipt requested, postage prepaid at least ten days prior to such action. 

 

(b)Notwithstanding anything contained herein to the contrary, in no event shall the Lender, or any affiliate of the Lender, be entitled to exercise incidents of ownership over, own, or convert any portion of the Shares in excess of that portion of Shares that upon conversion of which the sum of: (1) the number of shares of common stock of the Company (the “Common Stock”) beneficially owned by the Lender and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of any securities of the Company or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of the Shares with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Lender and its affiliates of more than 9.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, however, that the limitations set forth in this Section 3(b) may be waived by the Lender only upon, at the election of the Lender, not less than 61 days’ prior notice to the Company and the Pledge Holder, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Lender, as may be specified in such notice of waiver). 

 

4.Disposition of Shares. Upon any disposition of the Shares by Pledge Holder in accordance with the terms of Section 3 (Rights and Obligations of the Pledge Holder), Lender shall be entitled to all of the proceeds of any such disposition. 

 

5.Rights of Beneficial Ownership. Upon an event of default under the Redemption Note, and subject to Section 3(b), Lender shall be deemed the beneficial owner of the Shares and shall have all rights and benefits incident thereto. Lender and Guarantors, and each of them, agree to execute any necessary proxies or other documents to effectuate this right. So long as Guarantor owns the Shares and no event of default has occurred under the Redemption Note, Guarantor shall be entitled to vote any shares comprising the Collateral, subject to any proxies granted by Guarantor. 

 

6.Covenants of Guarantor. Guarantor hereby represents and warrants to Lender that Guarantor has good title (both record and beneficial) to the Collateral, free and clear of all claims, pledges, security interests, liens or encumbrances of every nature whatsoever, and that Guarantor has the right to pledge and grant Lender the security interest in the Collateral granted under this Agreement. Guarantor agrees that, until all sums due under the Redemption Note have been paid in full, Guarantor will not: (a) sell, assign or transfer, or attempt to sell, assign or transfer, any of the Collateral, (b) grant or create, or attempt to grant or create, any security interest, lien, pledge, claim or other encumbrance with respect to any of the Collateral, (c) suffer or permit to continue upon any of the Collateral during the term of this Agreement, an attachment, levy, execution or statutory lien, (d) permit the issuance of any equity of the Company or any other security of the Company which diminishes the value, or rights and preferences of the Shares or otherwise make any change to its capitalization; or (e) amend the rights and preferences of the Shares.  

 

There shall be no substitution of collateral under the terms of this Agreement, without the prior written consent of Lender. 

 

Guarantor hereby agrees to indemnify Lender and Pledge Holder against any direct loss, reasonable cost or out-of-pocket expense incurred by holder in connection with the Redemption Note and Agreement and the exercise of any and all rights pertaining thereto, including, without limitation, all court costs, reasonable attorney’s fees and other costs of collection. 

 

7.Disputes. In the event of a dispute with respect to the terms and provisions of this Agreement, Pledge Holder shall not be required to resolve that dispute or take any action with respect thereto. Pledge Holder may continue to hold the Shares and await final resolution of the dispute by joint written instructions from Guarantor and Lender or by a final determination of a court or arbitration panel of competent jurisdiction. In the alternative, Pledge Holder may deliver the Shares to a court of proper jurisdiction under an appropriate action in interpleader and thereupon be relieved of all responsibility under this Agreement. 

 

8.Release of Shares. When satisfactory proof has been presented to Pledge Holder that all amounts due under the Redemption Note (including accrued interest thereon) have been paid, Pledge Holder shall deliver the Shares with stock power attached to Guarantor and all obligations by and among Guarantor, Lender and Pledge Holder under this Agreement shall thereupon cease. 

 

9.Conduct of Pledge Holder. Pledge Holder shall not be required to exercise any standard of care greater than ordinary care in discharging its duties and obligations under this Agreement and Pledge Holder shall not incur any liability to anyone for any damages, losses or expenses with respect to any action taken or omitted in good faith. Pledge Holder shall have no duties other than those expressly imposed herein. Pledge Holder may rely and shall be protected in relying upon any paper or other document that may be submitted to it in connection with its duties hereunder and that it believes to be genuine and to have been signed or presented by the proper party or parties and shall have no liability or responsibility with respect to the form, execution or validity thereof. Pledge Holder may resign as  




such following the giving of 30 days prior written notice to the other parties hereto. Similarly, Pledge Holder may be removed and replaced following the giving of 30-days’ prior written notice to Pledge Holder by the other parties hereto. In either event, the duties of Pledge Holder shall terminate 30 days after receipt of such notice (or as of such earlier date as may be mutually agreeable), and Pledge Holder shall then deliver the Shares and any other related materials then in its possession to a successor pledge holder as shall be appointed by the other parties hereto as evidenced by a written notice filed with Pledge Holder. If the other parties hereto have failed to appoint a successor prior to the expiration of 30 days following receipt of the notice of resignation or removal, Pledge Holder may appoint a successor or petition any court of competent jurisdiction for the appointment of a successor pledge holder or for other appropriate relief, and any such resulting appointment shall be binding upon all of the parties hereto.

 

10.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (1) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (2) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to Lender:JanBella Group, LLC, Attention: William Alessi 

20311 Chartwell Center Drive, Suite 1469, Cornelius, NC 28031 

E-mail: balessi@alphamodus.com 

 

If to Guarantor:Attention: Orlando Taddeo 

Via di Affogalasino, 105  -  00148 Roma RM 

 

E-mail: otaddeo@mexedia.com 

 

If to Pledge Holder:Newlan Law Firm, PLLC, Attention: Eric Newlan 

2201 Long Prairie Road, Suite 107-762, Flower Mound, Texas 75022 

E-mail: eric@newlanpllc.com 

 

11.Wavier. No delay or omission by Lender in exercising any right or remedy hereunder shall operate as a waiver thereof or of any right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right or remedy. All rights and remedies of Lender hereunder are cumulative. 

 

12.General. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by written agreement subscribed by Guarantor and Lender. An executed original of any such agreement shall be delivered to the Pledge Holder upon its execution and if such agreement affects the right, duties or obligations of the Pledge Holder under this Agreement, it must also be executed and agreed to by the Pledge Holder before the same shall have any legal effect. This Agreement shall be governed under the laws of the State of North Carolina without regard to conflict of law principles; and any action with respect to this Agreement shall be bought in the State of North Carolina, County of Mecklenburg. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Except as required by law, each party to this Agreement shall keep this Agreement, the Redemption Note and the transactions contemplated by these agreements strictly confidential. 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Pledge Agreement on the date first set forth above. 

 

GUARANTOR:

 

MEXEDIA S.p.A. S.B.

 

EXEMPLAR 

By: __________________________

Orlando Taddeo 

President 

 

LENDER:

 

JANBELLA GROUP, LLC

 

EXEMPLAR 

By: ______________________________

William Alessi

Managing Member

 

PLEDGE HOLDER:

 

NEWLAN LAW FIRM, PLLC

 

EXEMPLAR 

By: _____________________________

Eric Newlan

Managing Member

 

ACKNOWLEDGED AND AGREED BY THE COMPANY:

 

RAADR, INC.

 

EXEMPLAR 

By: ________________________________________

Jacob DiMartino 

Chief Executive Officer 




EXHIBIT C

 

Form of Guaranty

 

 

 

GUARANTY

 

This Guaranty, dated as of September ___, 2024, is made by and between Mexedia S.p.A. S.B. (“Guarantor”), and JanBella Group, LLC, a North Carolina limited liability company (“Lender”). 

 

RECITALS

 

On September ___, 2024, Raadr, Inc., a Nevada corporation (“Borrower”), issued a Secured Promissory Note (the “Redemption Note”) in the principal amount of $540,000.00. A material element of the Redemption Note is, among others, the delivery of a pledge agreement (the “Pledge Agreement”) dated the date hereof by and among Guarantor, Borrower and Lender, whereby Guarantor pledged a total of 75,000 shares of Series F Preferred Stock of the Company (the “Pledged Securities”), to secure the performance when due of all obligations of Borrower pursuant to the Note and this Guaranty.

 

NOW, THEREFORE, in consideration of the premises and in order to induce Lender to consummate the transactions contemplated by the Agreement, Guarantor hereby agrees as follows: 

 

1.Guaranty. Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all obligations of Borrower under the Note (the “Obligations”).  

 

2.Guaranty Absolute. Guarantors, and each of them, guarantee that the Obligations will be performed strictly in accordance with their terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Lender with respect thereto; and if such Obligations are not performed accordingly, Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all Obligations (including, but not limited to, payment). The liability of Guarantor is primary, direct and independent of the obligations of Borrower pursuant to the Note. This Guaranty shall be enforceable against Guarantor in the same manner as if Guarantor were the primary obligor. The liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of: 

 

(a)any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure thereof; 

 

(b)any defense which Guarantor may assert including, but not limited to, failure of consideration, breach of warranty, fraud, payment, statute of frauds, bankruptcy, lack of legal capacity, statute of limitations, lender liability, accord and satisfaction and usury; or 

 

(c)any other circumstance which might otherwise constitute a defense available to, or a discharge  

of, Guarantor.

 

None of the foregoing waivers shall prejudice Lender’s rights under the Note. This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by Lender upon the insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made. 

 

Notwithstanding any of the foregoing provisions of this Section 2 to the contrary, should Guarantor deliver the Pledged Securities to Lender in accordance with the terms of the Pledge Agreement upon Borrower’s failure to fully and promptly perform its Obligations under the Note, then Guarantor’s guaranty hereunder shall be deemed to be fully satisfied and Guarantor shall have no further liability to Lender hereunder. 

 

3.Matters Being Waived. Guarantor hereby waives promptness, diligence, notice of acceptance, and any other notice with respect to any of the obligations of the Note and this Guaranty and any requirement that Lender exhausts any right or take any action against Borrower or any other person or entity or any collateral. 

 

4.Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Guaranty shall be brought only in the state courts of North Carolina or in the federal courts located in the state and City of Charlotte, North Carolina. The parties to this Guaranty hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Guarantor waives trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Guaranty or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Guaranty, any agreement or any other document delivered in connection with this Guaranty by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guaranty and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

5.Miscellaneous Provisions.  

 

(a)Amendments. No amendment or waiver of any provision of this Guaranty nor consent to any departure by Guarantors therefrom shall in any event be effective unless the same shall be in writing and signed by Lender and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

 

(b)No Waiver; Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 




(c)Headings. The headings herein are for convenience only and shall not limit or define the meaning of the provisions of this Guaranty. 

 

(d)Severability. If any provision of this Guaranty for any reason shall be held to be illegal,  

invalid or unenforceable, such illegality shall not affect any other provision of this Guaranty, this Guaranty shall be amended so as to enforce the illegal, invalid or unenforceable provision to the maximum extent permitted by applicable law, and the parties shall cooperate in good faith to further modify this Guaranty so as to preserve to the maximum extent possible the intended benefits to be received by the parties.

 

(e)Continuing Guaranty. This Guaranty is a continuing guaranty and shall (1) remain in full force and effect until payment in full of the obligations of the Note and all other amounts payable under this Guaranty, (2) be binding upon Guarantors, and each of them, their respective successors and respective assigns, and (3) inure to the benefit of and be enforceable by Lender and its successors, transferees and assigns. 

 

IN WITNESS WHEREOF, Guarantors have duly executed, or caused to be duly executed, and delivered this Guaranty as of the date first above written. 

 

 

GUARANTOR: 

 

MEXEDIA S.p.A. S.B. 

 

EXEMPLAR 

By: __________________________ 

Orlando Taddeo 

President 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT D

 

Trade Payables of RDAR

 

 

 

To remain RDAR obligations:

Michael Handelman (CPA)$6,000.00 

Manhattan Transfer Registrar Co.$6,005.00 

 

To be assigned by RDAR to new subsidiary post-closing:

Cooperative Computing (App developer)$30,000.00 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT E

 

Form of Closing Certificate of RDAR

 

 

 

CERTIFICATE OF THE COMPANY

[Pursuant to Section 7.1(a) of the Share Exchange Agreement]

 

The undersigned, Jacob DiMartino, the duly elected and acting Chief Executive Officer of Raadr, Inc., a Nevada corporation (the “Company”), hereby certifies and affirms that each of the following is true and correct: 

 

1.The representations and warranties of the Company contained in that certain Share Exchange Agreement (the “Exchange Agreement”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date. 

 

2.The Company is a corporation duly organized and existing under the laws of the State of Nevada, and has the power and authority to own its properties and carry on its business in the manner in which such business is conducted. 

 

3.The execution, delivery and performance by the Company of the Exchange Agreement, in accordance with the terms and provisions of the Exchange Agreement, have been duly authorized by appropriate corporate action of the Company. 

 

4.The Company has full power, right and authority to enter into the Exchange Agreement and to perform their respective obligations under the Exchange Agreement, and the Exchange Agreement is the legal, valid and binding obligation of the Company and is enforceable against the Company in accordance with its terms. 

 

5.The Exchange Shares of the Company to be issued pursuant to the Exchange Agreement will be, upon issuance and delivery pursuant to the terms of the Exchange Agreement, validly issued, fully paid and non-assessable. 

 

Certified and affirmed this ____ day of September, 2024. 

 

RAADR, INC. 

 

EXEMPLAR 

By: __________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 




EXHIBIT F

 

Form of Closing Certificate of Acquired Company and the Owner

 

 

 

CERTIFICATE OF ACQUIRED COMPANY AND THE OWNER

[Pursuant to Section 7.2(a) of the Share Exchange Agreement]

 

The undersigned hereby certify and affirm that each of the following is true and correct: 

 

1.The representations and warranties of Mexedia Inc., a Florida corporation (the “Acquired Company”), in that certain Share Exchange Agreement (the “Exchange Agreement”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date. 

 

2.Acquired Company is a corporation duly organized and existing under the laws of the Florida, and has the corporate power and authority to own its properties and carry on its business in the manner in which such business is conducted. 

 

3.The execution, delivery and performance by Acquired Company of the Exchange Agreement, in accordance with its terms and provisions, have been duly authorized by appropriate corporate action of Acquired Company. 

 

4.Acquired Company has full power, right and authority to enter into the Exchange Agreement and to perform its obligations under the Exchange Agreement and the Exchange Agreement is the legal, valid and binding obligation of Acquired Company and is enforceable against Acquired Company in accordance with its terms. 

 

5.The Ownership Interest of Acquired Company that is the subject to the Exchange Agreement is fully paid and non-assessable and, when transferred and sold on the Closing Date of the Exchange Agreement, will be free and clear of any liens, claims and encumbrances. 

 

6.Acquired Company and the Owner have each performed or complied with, in all material respects, all agreements and covenants required of them by the Exchange Agreement to which this Certificate relates. 

 

Certified and affirmed this ___ day of September, 2024. 

 

 

OWNER:

 

MEXEDIA S.p.A. S.B.

 

EXEMPLAR 

By: __________________________

Orlando Taddeo 

President 

ACQUIRED COMPANY:

 

MEXEDIA INC.

 

EXEMPLAR 

By: __________________________

Orlando Taddeo 

President 

 

 



AMENDMENT NO. 1

TO

SHARE EXCHANGE AGREEMENT

 

This constitutes Amendment No. 1 to that certain Share Exchange Agreement (the “Agreement”) dated as of September 9, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Mexedia Inc., a Florida corporation (“Acquired Company”), and Mexedia S.p.A. S.B., the owner of Acquired Company (the “Owner”). Capitalized terms herein shall have the same meanings as set forth in the Agreement. 

 

For good and adequate consideration, the receipt and adequacy of which is hereby acknowledged, RDAR, Acquired Company and Owner agree, as follows: 

 

A.Section 1.2 of the Agreement is hereby deleted in its entirety and replaced with the following: 

 

1.2Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VIII, the closing date of the Exchange (the “Closing”) will take place on the business day upon satisfaction of the conditions set forth in Article VI (or as soon as practicable thereafter following satisfaction or waiver of the conditions set forth in Article VI) (the “Closing Date”), at such time and location as may be agreed upon by RDAR and Acquired Company; provided, however, that the Closing shall take place no later than February 28, 2025. 

 

B.Section 8.(c) of the Agreement is hereby deleted in its entirety and replaced with the following: 

 

(c)by either RDAR or Acquired Company if the Share Exchange shall not have been consummated on or before February 28, 2025 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed at or prior to the Effective Time). 

 

In all other aspects, the Agreement is ratified and affirmed as of the 28th day of September, 2024. 

 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 


MEXEDIA, INC. AMENDMENT NO. 1 TO SHARE EXCHANGE AGREEMENT   |   PAGE 1



[ SIGNATURE PAGE TO AMENDMENT NO. 1 TO SHARE EXCHANGE AGREEMENT ]

 

 

IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Amendment No. 1 to Share Exchange Agreement as of the date first above written. 

 

RDAR:ACQUIRED COMPANY: 

 

RAADR, INC.MEXEDIA INC. 

 

 

By: /s/ Jacob DiMartinoBy: /s/ Orlando Taddeo 

Jacob DiMartinoOrlando Taddeo 

Chief Executive OfficerPresident 

E-Mail: jacob.d@raadr.comE-Mail: otaddeo@mexedia.com 

 

OWNER: 

 

MEXEDIA S.p.A. S.B. 

 

 

By: /s/ Orlando Taddeo 

Orlando Taddeo 

President 

E-Mail: otaddeo@mexedia.com 

 

 

 

 

 

 

 

 

 

 


MEXEDIA, INC. AMENDMENT NO. 1 TO SHARE EXCHANGE AGREEMENT   |   PAGE 2


SHARE EXCHANGE AGREEMENT

 

This Share Exchange Agreement (this “Agreement”) is entered into as of this 9th day of September, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Mexedia DAC, a Republic of Ireland corporation (“Acquired Company”), and Mexedia S.p.A. S.B., the owner of Acquired Company (the “Owner”). 

 

RECITALS

 

WHEREAS, this Agreement is one of a series of agreements that would, when consummated, result in the Company’s (a) having acquired businesses and assets valued in excess of USD$60,000,000 and (b) having undergone a change in control (collectively, the “Change-in-Control Agreements”); and

 

WHEREAS, the Boards of Directors of RDAR, Acquired Company and the Owner have determined that an acquisition of all of the issued and outstanding shares of capital stock of Acquired Company by RDAR through a share exchange upon the terms and subject to the conditions set forth in this Agreement (the “Share Exchange”) would be in the best interests of RDAR, Acquired Company and the Owner; and

 

WHEREAS, and the Boards of Directors of RDAR and Acquired Company have each approved the Share Exchange; and

 

WHEREAS, this Agreement is under consideration by the Board of Directors of the Owner for formal determination and approval; and

 

WHEREAS, pursuant to the Share Exchange, all of the right, title and interest in and to all of the issued and outstanding shares of capital stock of Acquired Company (the “Ownership Interest”) will be exchanged for 30,000 shares of Series F Preferred Stock of RDAR, the Certificate of Designation of which is attached hereto as Exhibit A, including the common stock into which such shares may be converted (the “Exchange Shares”); and

 

WHEREAS, RDAR, Acquired Company and the Owner desire to make certain representations, warranties, covenants and agreements in connection with the Share Exchange and also to prescribe various conditions to the Share Exchange.

 

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows: 

 

Article I.

The Exchange

 

1.1Share Exchange. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Nevada Revised Statutes (the “Nevada Statutes”), at the Closing (defined below), the parties shall do the following: 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 1



(a)Acquired Company shall cause the Owner to convey, assign and transfer the Ownership Interest to RDAR by delivering to RDAR duly executed assignments in proper form for transfer. The Ownership Interest transferred to RDAR at the Closing shall constitute 100% of the issued and outstanding shares of capital stock of Acquired Company. 

 

(b)As consideration for its acquisition of the Ownership Interest, RDAR shall issue the Exchange Shares to the Owner by delivering a book entry record to the Owner evidencing the Exchange Shares (the “Exchange Shares Certificate”). 

 

1.2Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VIII, the closing date of the Exchange (the “Closing”) will take place on the business day upon satisfaction of the conditions set forth in Article VI (or as soon as practicable thereafter following satisfaction or waiver of the conditions set forth in Article VI) (the “Closing Date”), at such time and location as may be agreed upon by RDAR and Acquired Company; provided, however, that the Closing shall take place no later than January 31, 2025. 

 

1.3Reorganization. 

 

(a)As of the Closing, Jacob DiMartino shall resign as RDAR’s sole director and officer and Orlando Taddeo shall be appointed as the sole director and officer of RDAR. 

 

(b)If at any time after the Closing, any party shall consider that any further deeds, assignments, conveyances, agreements, documents, instruments or assurances in law or any other things are necessary or desirable to vest, perfect, confirm or record in RDAR the title to any property, rights, privileges, powers and franchises of Acquired Company by reason of, or as a result of, the Share Exchange, or otherwise to carry out the provisions of this Agreement, the remaining parties, as applicable, shall execute and deliver, upon request, any instruments or assurances, and do all other things necessary or proper to vest, perfect, confirm or record title to such property, rights, privileges, powers and franchises in RDAR, and otherwise to carry out the provisions of this Agreement. 

 

Article II.

Compliance with Applicable Securities Laws

 

2.1Covenants, Representations and Warranties of the Owner. 

 

(a)The Owner acknowledges and agrees that it is acquiring the Exchange Shares for investment purposes and will not offer, sell or otherwise transfer, pledge or hypothecate any of the Exchange Shares issued to them (other than pursuant to an effective Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”)), directly or indirectly unless: 

 

(1)the sale is to RDAR; or 

 

(2)the Exchange Shares are sold in a transaction that does not require registration under the Securities Act, or any applicable United States state laws and regulations governing the offer and sale of securities, and the seller has furnished to RDAR an opinion of counsel to that effect or such other written opinion as may be reasonably required by RDAR. 

 

(b)The Owner acknowledges and agrees that the book entry record representing the Exchange Shares shall bear a restrictive legend, substantially in the following form: 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 2



“THE SECURITIES REPRESENTED BY THIS STOCK CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS, AND SHALL NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED (WHETHER OR NOT FOR CONSIDERATION) BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.” 

 

(c)The Owner represents and warrants that it: 

 

(1)is not aware of any advertisement of, or other form or general solicitation with respect to, any of the Exchange Shares being issued hereunder; 

 

(2)acknowledges and agrees that RDAR will refuse to register any transfer of the Exchange Shares not made pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act and in accordance with applicable state and provincial securities laws; and 

 

(3)acknowledges and agrees to RDAR making a notation on its records or giving instructions to the registrar and transfer agent of RDAR in order to implement the restrictions on transfer set forth and described herein. 

 

Article III.

Representations and Warranties

 

3.1Representations and Warranties of Acquired Company and the Owner. As a material inducement for RDAR to enter into this Agreement and to consummate the transactions contemplated hereby, Acquired Company and the Owner hereby make the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by RDAR regardless of any investigation made or information obtained by RDAR (unless and to the extent specifically and expressly waived in writing by RDAR on or before the Closing Date): 

 

(a)Organization, Standing and Power; No Disability. Acquired Company is duly organized, validly existing and in good standing under the laws of the Republic of Ireland. The Owner is duly organized, validly existing and in good standing under the laws of its organization. 

 

(b)Subsidiaries. Acquired Company does not own, directly or indirectly, any equity or other ownership interest in any company, corporation, partnership, joint venture or otherwise. 

 

(c)Corporate Documents. Schedule 3.1(c) contains true and correct copies of the Articles of Incorporation and bylaws of Acquired Company, each as amended to date. 

 

(d)Ownership Interest. The Ownership Interest represents 100% of the issued and outstanding shares of capital stock of Acquired Company. Acquired Company also warrants that there are no outstanding bonds, debentures, notes or other indebtedness or other securities of Acquired Company. There are no rights, commitments, agreements, arrangements or undertakings of any kind to which Acquired Company is a party or by which it is bound obligating Acquired Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional ownership interests of Acquired Company or obligating Acquired Company to issue, grant, extend or enter into any such right, commitment, agreement, arrangement or undertaking. There are  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 3



no outstanding contractual obligations, commitments, understandings or arrangements of Acquired Company to repurchase, redeem or otherwise acquire or make any payment in respect of the capital stock of Acquired Company.

 

(e)Capitalization of Acquired Company. Schedule 3(e) sets forth the issued and outstanding shares of capital stock of Acquired Company (the Ownership Interest). All of Acquired Company’s issued and outstanding shares of capital stock have been duly authorized, are validly issued, fully paid and non-assessable. 

 

(f)Authority; Non-contravention. Acquired Company and the Owner have all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Acquired Company and its Owner and the consummation by Acquired Company and the Owner of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary action on the part of Acquired Company. This Agreement has been duly executed and when delivered by Acquired Company and the Owner shall constitute a valid and binding obligation of Acquired Company and the Owner, enforceable against Acquired Company and the Owner, as applicable, in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of Acquired Company under, (1) the articles of incorporation or bylaws of Acquired Company, (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to Acquired Company, its properties or assets, or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to Acquired Company, its properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to Acquired Company or could not prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement. 

 

(g)Governmental Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any United States court, administrative agency or commission, or other federal, state or local government or other governmental authority, agency, domestic or foreign (a “Governmental Entity”), is required by or with respect to Acquired Company in connection with the execution and delivery of this Agreement by Acquired Company or the consummation by Acquired Company of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Securities Act or the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder (the “Exchange Act”) or pursuant to the rules of OTC Markets. 

 

(h)Financial Statements. 

 

(1)At Closing, RDAR will have received from Acquired Company a copy of its unaudited financial statements for the years ended December 31, 2023 and 2022, and for the six months ended June 30, 2024 (collectively, the “Acquired Company Financial Statements”). The Acquired Company Financial Statements fairly present the financial condition of Acquired Company at the dates indicated and its results of operations and cash flows for the periods then ended and, except as indicated therein, reflect all  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 4



claims, debts and liabilities of Acquired Company, fixed or contingent, and of whatever nature.

 

(2)Since June 30, 2024, there has been no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operations or prospects, of Acquired Company, whether as a result of any legislative or regulatory change, revocation of any license or rights to do business, fire, explosion, accident, casualty, labor trouble, flood, drought, riot, storm, condemnation, act of God, public force or otherwise and no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operation or prospects, of Acquired Company except in the ordinary course of business. 

 

(3)Since June 30, 2024, Acquired Company has not issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise dispose of, any securities of Acquired Company, and has not granted or agreed to grant any other right to subscribe for or to purchase any securities of Acquired Company or has incurred or agreed to incur any indebtedness for borrowed money. 

 

(i)Absence of Certain Changes or Events. Since June 30, 2024, Acquired Company has conducted its business only in the ordinary course consistent with past practice, and there is not and has not been any: 

 

(1)material adverse change with respect to Acquired Company including any amendments to its formation and governance documents; 

 

(2)event which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 4.1 without prior consent of RDAR; 

 

(3)condition, event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement; 

 

(4)incurrence, assumption or guarantee by Acquired Company of any indebtedness for borrowed money other than in the ordinary course and in amounts and on terms consistent with past practices or as disclosed to RDAR in writing; 

 

(5)creation or other incurrence by Acquired Company of any lien on any asset other than in the ordinary course consistent with past practices; 

 

(6)transaction or commitment made, or any contract or agreement entered into, by Acquired Company relating to its assets or business (including the acquisition or disposition of any assets) or any relinquishment by Acquired Company of any contract or other right, in either case, material to Acquired Company, other than transactions and commitments in the ordinary course consistent with past practices and those contemplated by this Agreement; 

 

(7)labor dispute, other than routine, individual grievances, or, to the knowledge of Acquired Company, any activity or proceeding by a labor union or representative thereof to organize any employees of Acquired Company or any lockouts, strikes, slowdowns, work stoppages or threats by or with respect to such employees; 

 

(8)payment, prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due; 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 5



(9)write-offs or write-downs of any assets of Acquired Company; 

 

(10)creation, termination or amendment of, or waiver of any right under, any material contract of Acquired Company; 

 

(11)damage, destruction or loss having, or reasonably expected to have, a material adverse effect on Acquired Company; 

 

(12)other condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse effect or give rise to a material adverse change with respect to Acquired Company; or 

 

(13)agreement or commitment to do any of the foregoing. 

 

(j)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by Acquired Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(k)Litigation; Labor Matters; Compliance with Laws. 

 

(1)Except as set forth in Schedule 3(k)(1), there is no suit, action or proceeding or investigation pending or, to the knowledge of Acquired Company, threatened against or affecting Acquired Company or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to Acquired Company or prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against Acquired Company having, or which, insofar as reasonably could be foreseen by Acquired Company, in the future could have, any such effect. 

 

(2)Acquired Company is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike, work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material adverse effect with respect to Acquired Company. 

 

(3)The conduct of the business of Acquired Company complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 

 

(l)Benefit Plans. Acquired Company is not a party to any Benefit Plan under which Acquired Company currently has an obligation to provide benefits to any current or former employee, officer or director of Acquired Company. As used herein, “Benefit Plan” shall mean any employee benefit plan, program, or arrangement of any kind, including any defined benefit or defined contribution plan, ownership plan with respect to any membership interest, executive compensation program or arrangement, bonus plan, incentive compensation plan or arrangement, profit sharing plan or arrangement, deferred compensation plan, agreement or arrangement, supplemental retirement plan or arrangement, vacation pay, sickness, disability, or death benefit plan (whether provided through insurance, on a funded or unfunded basis, or otherwise), medical or life insurance plan providing benefits to employees, retirees, or former employees or any of their dependents, survivors, or beneficiaries, severance pay, termination, salary continuation, or employee assistance plan. 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 6



(m)Tax Returns and Tax Payments. 

 

(1)Acquired Company has timely filed with the appropriate taxing authorities all Tax Returns, as that term is hereinafter defined, required to be filed by it (taking into account all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes, as that term is hereinafter defined, due and owing by Acquired Company have been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). Acquired Company is not currently the beneficiary of any extension of time within which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to Acquired Company by a taxing authority in a jurisdiction where Acquired Company does not fileTax Returns that it is or may be subject to taxation by that jurisdiction. Since inception, Acquired Company has not incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice. 

 

(2)No material claim for unpaid Taxes has been made or become a lien against the property of Acquired Company or is being asserted against Acquired Company, no audit of any Tax Return of Acquired Company is being conducted by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by Acquired Company and is currently in effect. Acquired Company has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party. 

 

(3)As used herein, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts imposed by any governmental authority, domestic or foreign. As used herein, “ Tax Return “ shall mean any return, report or statement required to be filed with any governmental authority with respect to Taxes. 

 

(n)Environmental Matters. Acquired Company is in compliance with all Environmental Laws in all material respects. Acquired Company has not received any written notice regarding any violation of any Environmental Laws, as that term is hereinafter defined, including any investigatory, remedial or corrective obligations. Acquired Company holds all permits and authorizations required under applicable Environmental Laws, unless the failure to hold such permits and authorizations would not have a material adverse effect on Acquired Company, and is in compliance with all terms, conditions and provisions of all such permits and authorizations in all material respects. No releases of Hazardous Materials, as that term is hereinafter defined, have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by Acquired Company or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property which could result in any liability to Acquired Company. Acquired Company has not transported or arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to Acquired Company. Acquired Company has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a material adverse effect on Acquired Company. There are no past, pending or threatened claims under Environmental Laws against Acquired Company and Acquired Company is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against Acquired Company pursuant to Environmental Laws. “Environmental Laws” means all applicable foreign, federal, state and local statutes, rules, regulations, ordinances, orders, decrees and common law relating in any manner to contamination, pollution or protection of human health or the environment, and similar state laws. “Hazardous Material” means any toxic, radioactive, corrosive or otherwise hazardous substance, including petroleum, its derivatives, by-products and other hydrocarbons, or any substance having any constituent elements displaying  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 7



any of the foregoing characteristics, which in any event is regulated under any Environmental Law.

 

(o)Material Contracts. All Material Contracts copies of which have been furnished to RDAR. Acquired Company is not, or has not received any notice or has any knowledge that any other party is, in default in any respect under any Material Contract, as that term is hereinafter defined; and there has not occurred any event that with the lapse of time or the giving of notice or both would constitute such a material default. 

 

For purposes of this Agreement, a “Material Contract” means any contract, agreement or commitment that is effective as of the Closing Date to which Acquired Company is a party (1) with expected receipts or expenditures in an amount in excess of two percent (2%) of Acquired Company’s gross revenues for the 12 months ended July 31, 2025, (2) requiring Acquired Company to indemnify any person in an amount that is expected to exceed ten percent (10%) of Acquired Company’s owners’ equity as of the date of Closing, (3) granting exclusive rights to any party, (4) evidencing indebtedness for borrowed or loaned money in an amount in excess of ten percent (10%) of Acquired Company’s owners’ equity, including guarantees of such indebtedness, as of the date of Closing, or (5) which, if breached by Acquired Company in such a manner would (A) permit any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages (either individually or in the aggregate with all other such claims under that contract) from Acquired Company or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any such contract, agreement or commitment. 

 

(p)Properties. Acquired Company has no real property. Any facilities held under lease by Acquired Company is held by it under valid, subsisting and enforceable leases of which Acquired Company is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect. 

 

(q)Intellectual Property. 

 

(1)As used in this Agreement, the term “Trademarks” means trademarks, service marks, trade names, internet domain names, designs, slogans, and general intangibles of like nature; the term “Trade Secrets” means technology; trade secrets and other confidential information, know-how, proprietary processes, formulae, algorithms, models, and methodologies; the term “ Intellectual Property “ means patents, copyrights, Trademarks, applications for any of the foregoing, and Trade Secrets; the term “ Company License Agreements “ means any license agreements granting any right to use or practice any rights under any Intellectual Property (except for such agreements for off-the-shelf products that are generally available for less than $10,000), and any written settlements relating to any Intellectual Property, to which Acquired Company is a party or otherwise bound; and the term “ Software “ means any and all computer programs, including any and all software implementations of algorithms, models and methodologies, whether in source code or object code. 

 

(2)Acquired Company owns or has valid rights to use the Trademarks, trade names, domain names, copyrights, patents, logos, licenses and computer software programs (including, without limitation, the source codes thereto) that are necessary for the conduct of its respective businesses as now being conducted. To the knowledge of Acquired Company, none of Acquired Company’s Intellectual Property or License Agreements infringe upon the rights of any third party that may give rise to a cause of action or claim against Acquired Company or its successors. 

 

(r)Affiliate Transactions. Except as set forth in Schedule 3(r), no officer, director or employee of Acquired Company or any member of the immediate family of any such officer, director or employee, or any entity in which any of such persons owns any beneficial interest (other than any publicly-held  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 8



corporation whose stock is traded on a national securities exchange or in the over-the-counter market and less than one percent of the stock of which is beneficially owned by any of such persons), has any agreement with Acquired Company or any interest in any of their property of any nature, used in or pertaining to the business of Acquired Company. None of the foregoing persons has any direct or indirect interest in any competitor, supplier or customer of Acquired Company or in any person from whom or to whom Acquired Company leases any property or transacts business of any nature.

 

(s)Undisclosed Liabilities. Except as set forth in Schedule 3(s), Acquired Company has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise.) 

 

(t)Full Disclosure. All of the representations and warranties made by Acquired Company in this Agreement, and all statements set forth in the certificates delivered by Acquired Company at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by Acquired Company pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to RDAR or its representatives by or on behalf of any of Acquired Company or its affiliates in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading. 

 

3.2Representations and Warranties of RDAR. As a material inducement for Acquired Company and the Owner to enter into this Agreement and to consummate the transactions contemplated hereby, RDAR hereby makes the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by Acquired Company regardless of any investigation made or information obtained by Acquired Company (unless and to the extent specifically and expressly waived in writing by Acquired Company on or before the Closing Date): 

 

(a)Organization, Standing and Corporate Power. RDAR is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power and authority and all government licenses, authorizations, permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted. RDAR is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect with respect to RDAR. 

 

(b)Subsidiaries. RDAR has no subsidiaries. 

 

(c)Capitalization of RDAR. The entire authorized capital stock of RDAR consists of 15,000,000,000 common shares, par value $0.001 per share, of which 4,433,149,661 shares are issued and outstanding, and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and 1,000,000 shares of which are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and no shares of which are issued and outstanding. All of RDAR’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 9



Except as set forth in Schedule 3.2(c), there are no other shares of RDAR capital stock issuable upon the exercise of outstanding warrants, convertible notes, options or otherwise. Except as set forth in Schedule 3.2(c), no shares of capital stock or other equity securities of RDAR are issued, reserved for issuance or outstanding. 

 

The Exchange Shares will be, when issued, duly authorized, validly issued, fully paid and non-assessable, not subject to preemptive rights and issued in compliance with all applicable state and federal laws concerning the issuance of securities. 

 

(d)Corporate Authority; Non-contravention. RDAR has all requisite corporate and other power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by RDAR and the consummation by RDAR of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary corporate action on the part of RDAR. This Agreement has been duly executed and when delivered by RDAR shall constitute a valid and binding obligation of RDAR, enforceable against RDAR in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of RDAR under (1) its articles of incorporation, bylaws, or other charter documents; (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to RDAR,its properties or assets; or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to RDAR, its properties or assets, other than, in the case of clauses (2) and (3), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to RDAR or could not prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement. 

 

(e)Government Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any Governmental Entity, is required by or with respect to RDAR in connection with the execution and delivery of this Agreement by RDAR, or the consummation by RDAR of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Nevada Statutes, the Securities Act or the Exchange Act. 

 

(f)Financial Statements. 

 

(1)The unaudited financial statements of RDAR included in the reports, schedules, forms, statements and other documents filed by RDAR with OTC Markets (collectively, and in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “RDAR Financial Information”) comply as to form in all material respects with applicable accounting requirements and the published rules of OTC Markets with respect thereto, have been prepared in accordance with U.S. generally accepted accounting principles applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the consolidated financial position of RDAR and its consolidated subsidiaries as of the dates thereof and the consolidated results of operations and changes in cash flows for the periods then ended. Except as set forth in the RDAR Financial Information, at the date of the most recent unaudited financial statements of RDAR included in the RDAR Financial Information, RDAR has not  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 10



incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR.

 

(2)RDAR has made the following financial information (the RDAR Financial Information) available to Acquired Company: 

 

(A)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the years ended December 31, 2023 and 2022; 

 

(B)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the six months ended June 30, 2024 (the “RDAR Interim Statements”); and 

 

(C)The RDAR Financial Information presents fairly the financial condition of RDAR as of such dates and the results of operations of RDAR for such periods, in accordance with GAAP and are consistent with the books and records of RDAR (which books and records are correct and complete). 

 

(g)Events Subsequent to RDAR Interim Statements. Since the date of the RDAR Interim Statements, there has not been, occurred or arisen, with respect to RDAR: 

 

(1)any change or amendment in its Articles of Incorporation and/or Bylaws; 

 

(2)any reclassification, split-up or other change in, or amendment of or modification to, the rights of the holders of any of its capital stock, except changes made in relation to the transactions contemplated by this Agreement; 

 

(3)any direct or indirect redemption, purchase or acquisition by any person of any of its capital stock or of any interest in or right to acquire any such stock; 

 

(4)any issuance, sale, or other disposition of any capital stock, or any grant of any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any capital stock; 

 

(5)any declaration, set aside, or payment of any dividend or any distribution with respect to its capital stock (whether in cash or in kind) or any redemption, purchase, or other acquisition of any of its capital stock; 

 

(6)the organization of any subsidiary or the acquisition of any shares of capital stock by any person or any equity or ownership interest in any business; 

 

(7)any damage, destruction or loss of any of its properties or assets whether or not covered by insurance; 

 

(8)any sale, lease, transfer or assignment of any of its assets, tangible or intangible, other than for a fair consideration in the ordinary course of business; 

 

(9)the execution of, or any other commitment to any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) outside the ordinary course of business; 


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(10)any acceleration, termination, modification, or cancellation of any agreement, contract lease or license (or series of related agreements, contracts, leases, and licenses) involving more than $10,000 to which it is a party or by which it is bound; 

 

(11)any security interest or encumbrance imposed upon any of its assets, tangible; 

 

(12)any capital investment in, any loan to, or any acquisition of the securities or assets of, any other person or entity (or series of related capital investments, loans and acquisitions) involving more than $2,500 and outside the ordinary course of business; 

 

(13)any issuance of any note, bond or other debt security, or created, incurred, assumed, or guaranteed any indebtedness for borrowed money or capitalized lease obligation involving more than $2,500; 

 

(14)any delay or postponement of the payment of accounts payable or other liabilities; 

 

(15)any loan to, or any entrance into any other transaction with, any of its directors, officers and employees either involving more than $500 individually or $2,500 in the aggregate; 

 

(16)any employment contract or collective bargaining agreement, written or oral, or modified the terms of any existing such contract or agreement; 

 

(17)any taking of other action or entrance into any other transaction other than in the ordinary course of business, or entrance into any transaction with any insider of RDAR, except as disclosed in this Agreement and any disclosures schedules; 

 

(18)any other event or occurrence that may have or could reasonably be expected to have a material adverse effect on RDAR (whether or not similar to any of the foregoing); or 

 

(19)any agreement, whether in writing or otherwise, to do any of the foregoing. 

 

(h)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by RDAR to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(i)Litigation; Labor Matters; Compliance with Laws. 

 

(1)There is no suit, action or proceeding or investigation pending or, to the knowledge of RDAR, threatened against or affecting RDAR or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR or prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against RDAR having, or which, insofar as reasonably could be foreseen by RDAR, in the future could have, any such effect. 

 

(2)The conduct of the business of RDAR complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 


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(j)Contracts. Except as set forth in Schedule 3.2(j), RDAR has no written or oral contracts, understandings, agreements and other arrangements executed by an officer or duly authorized employee of RDAR or to which RDAR is a party, except for this Agreement. 

 

(k)OTC Markets Reports and Financial Statements. RDAR has filed with OTC Markets all reports and other filings required to be filed by RDAR in accordance with the rules of OTC Markets (the “RDAR OTC Markets Reports”). As of their respective dates, the RDAR OTC Markets Reports complied in all material respects with the applicable requirements of the Securities Act, the Exchange Act and the respective rules and regulations promulgated thereunder applicable to such RDAR OTC Markets Reports and, except to the extent that information contained in any RDAR OTC Markets Report has been revised or superseded by a later RDAR OTC Markets Report filed and publicly available prior to the date of this Agreement, none of the RDAR OTC Markets Reports contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of RDAR included in RDAR OTC Markets Reports were prepared from and are in accordance with the accounting books and other financial records of RDAR, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and presented fairly the consolidated financial position of RDAR as of the dates thereof and the consolidated results of operations and cash flows for the periods then ended. Except as set forth in the RDAR OTC Markets Reports, RDAR has no liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) other than liabilities or obligations incurred in the ordinary course of business. The RDAR OTC Markets Reports accurately disclose (1) the terms and provisions of all stock option plans, (2) transactions with Affiliates and (3) all material contracts. If, at any time prior to Closing, should RDAR become delinquent in any required filings with OTC Markets, RDAR represents and warrants that such filings shall be brought current in no less than 10 business days from the due date. Until such time as the filing is brought current, RDAR will promptly file any and all reports required to advise the OTC Markets of the failure to file the reports when due. 

 

(l)Board Determination. The Board of Directors of RDAR has unanimously determined that the terms of the Share Exchange are fair to and in the best interests of RDAR and its shareholders. 

 

(m)Required RDAR Share Issuance Approval. RDAR represents that the issuance of the Exchange Shares to the Owner will be in compliance with the Nevada Statutes and the Bylaws of RDAR, as well as federal and state securities laws. 

 

(n)Undisclosed Liabilities. Except as set forth in Schedule 3.2(n), RDAR has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the RDAR OTC Markets Documents incurred in the ordinary course of business. 

 

(o)Full Disclosure. All of the representations and warranties made by RDAR in this Agreement, and all statements set forth in the certificates delivered by RDAR at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by RDAR pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to Acquired Company or its representatives by or on behalf of RDAR in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 13



therein not misleading.

 

(p)Powers of Attorney. There are no outstanding powers of attorney executed on behalf of RDAR. 

 

Article IV.

Covenants Relating to Conduct of Business Prior to Share Exchange

 

4.1Conduct of Acquired Company and RDAR. From the date of this Agreement and until the Effective Time, or until the prior termination of this Agreement, Acquired Company and RDAR shall not, unless mutually agreed to in writing: 

 

(a)engage in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance upon any of their respective assets or which will not be discharged in full prior to the Effective Time; 

 

(b)sell, assign or otherwise transfer any of their assets, or cancel or compromise any debts or claims relating to their assets, other than for fair value, in the ordinary course of business, and consistent with past practice; 

 

(c)fail to use reasonable efforts to preserve intact their present business organizations, keep available the services of their employees and preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its good will and ongoing business not be impaired prior to the Effective Time; 

 

(d)suffer or permit any material adverse change to occur with respect to Acquired Company and RDAR or their business or assets; and 

 

(e)make any material change with respect to their business in accounting or bookkeeping methods, principles or practices, except as required by GAAP. 

 

4.2Current Information. 

 

(a)During the period from the date of this Agreement to the Closing, each party hereto shall promptly notify each other party of any (1) significant change in its ordinary course of business, (2) proceeding (or communications indicating that the same may be contemplated), or the institution or threat or settlement of proceedings, in each case involving the Parties the outcome of which, if adversely determined, could reasonably be expected to have a material adverse effect on the Party, taken as a whole or (3) event which such Party reasonably believes could be expected to have a material adverse effect on the ability of any party hereto to consummate the Share Exchange. 

 

(b)During the period from the date of this Agreement to the Closing, RDAR shall promptly notify Acquired Company of any correspondence received from OTC Markets or the SEC and shall deliver a copy of such correspondence to Acquired Company within one (1) business day of receipt. 

 

4.3Material Transactions. Prior to the Closing, neither Acquired Company nor RDAR will, without first obtaining the written consent of the other parties hereto: 

 

(a)amend its Articles of Incorporation or Bylaws or enter into any agreement to merge or  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 14



consolidate with, or sell a significant portion of its assets to, any other Person;

 

(b)place on any of its assets or properties any pledge, charge or other encumbrance, except as otherwise authorized hereunder, or enter into any transaction or make any contract or commitment relating to its properties, assets and business, other than in the ordinary course of business or as otherwise disclosed herein; 

 

(c)guarantee the obligation of any person, firm or corporation, except in the ordinary course of business; 

 

(d)make any loan or advance in excess of $2,500 in the aggregate or cancel or accelerate any material indebtedness owing to it or any claims which it may possess or waive any material rights of substantial value; 

 

(e)violate any applicable law which violation might have a material adverse effect on such party; 

 

(f)except in the ordinary course of business, enter into any agreement or transaction with any of such party’s affiliates; or 

 

(g)engage in any transaction or take any action that would render untrue in any material respect any of the representations and warranties of such party contained in this Agreement, as if such representations and warranties were given as of the date of such transaction or action. 

 

Article V.

Additional Agreements

 

5.1Reorganization Agreement: Mexedia Inc. At or prior to the Closing, RDAR, Mexedia Inc. (“US Mexedia”) and the owner of US Mexedia shall have entered into a Share Exchange Agreement, in the form of Exhibit B attached hereto (the “US Mexedia SPA”), pursuant to which RDAR would acquire all of the outstanding shares of capital stock of US Mexedia. 

 

5.2Redemption Agreement. At or prior to the Closing, RDAR and JanBella Group, LLC shall have entered into a Redemption Agreement, in the form of Exhibit C attached hereto (the “Redemption Agreement”), pursuant to which RDAR would re-acquire all outstanding shares of Series E Preferred Stock of RDAR. 

 

5.3Access to Information; Confidentiality. 

 

(a)Acquired Company shall, and shall cause its officers, employees, counsel, financial advisors and other representatives to, afford to RDAR and its representatives reasonable access during normal business hours during the period prior to the Effective Time to its and to Acquired Company’s properties, books, contracts, commitments, personnel and records and, during such period, Acquired Company shall, and shall cause its officers, employees and representatives to, furnish promptly to RDAR all information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request. For the purposes of determining the accuracy of the representations and warranties of RDAR set forth herein and compliance by RDAR of its obligations hereunder, during the period prior to the Effective Time, RDAR shall provide Acquired Company and its representatives with reasonable access during normal business hours to its properties, books, contracts, commitments, personnel and records as may be necessary to enable Acquired Company to confirm the accuracy of the representations and warranties of RDAR  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 15



set forth herein and compliance by RDAR of its obligations hereunder, and, during such period, RDAR shall, and shall cause its officers, employees and representatives to, furnish promptly to Acquired Company upon its request (1) a copy of each report, schedule, registration statement and other document filed by it during such period pursuant to the requirements of federal or state securities laws and (2) all other information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request.

 

Except as required by law, each of Acquired Company and RDAR will hold, and will cause its respective directors, officers, employees, accountants, counsel, financial advisors and other representatives and affiliates to hold, any nonpublic information in confidence. 

 

(b)No investigation pursuant to this Section 5.3 shall affect any representations or warranties of the parties herein or the conditions to the obligations of the parties hereto. 

 

5.4Best Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Share Exchange and the other transactions contemplated by this Agreement. RDAR and Acquired Company shall mutually cooperate in order to facilitate the achievement of the benefits reasonably anticipated from the Share Exchange. 

 

5.5Public Announcements. RDAR, on the one hand, and Acquired Company, on the other hand, will consult with each other before issuing, and provide each other the opportunity to review and comment upon, any press release or other public statements with respect to the transactions contemplated by this Agreement and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law or court process. The parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement shall be mutually agreed upon prior to the issuance thereof. 

 

5.6Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses. 

 

5.7No Solicitation. Except as previously agreed to in writing by the other party, neither Acquired Company nor RDAR shall authorize or permit any of its officers, directors, agents, representatives, or advisors to solicit, initiate or encourage or take any action to facilitate the submission of inquiries, proposals or offers from any person relating to any matter concerning any exchange, merger, consolidation, business combination, recapitalization or similar transaction involving Acquired Company or RDAR, respectively, other than the transaction contemplated by this Agreement or any other transaction the consummation of which would or could reasonably be expected to impede, interfere with, prevent or delay the Share Exchange or which would or could be expected to dilute the benefits to either Acquired Company or RDAR of the transactions contemplated hereby. Acquired Company or RDAR will immediately cease and cause to be terminated any existing activities, discussions and negotiations with any parties conducted heretofore with respect to any of the foregoing. 

 

Article VI.

Conditions Precedent and Conditions Subsequent

 

6.1Conditions to Each Party’s Obligation to Effect the Share Exchange. The obligation of each party to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 


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(a)No Restraints. No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation of the Share Exchange shall have been issued by any court of competent jurisdiction or any other Governmental Entity having jurisdiction and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted or deemed applicable to the Share Exchange that makes consummation of the Share Exchange illegal. 

 

(b)Governmental Approvals.  

 

(1)As to RDAR and Acquired Company. All authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on RDAR or Acquired Company shall have been obtained, made or occurred. 

 

(2)As to the Owner. All required approvals required by local rules and regulations, stock market rules and regulations and corporate governance requirements, including the issuance of any and all required communications with respect thereto, as well as all other authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on the Owner shall have been obtained, made or occurred. 

 

(c)No Litigation. There shall not be pending or threatened any suit, action or proceeding before any court, Governmental Entity or authority (1) pertaining to the transactions contemplated by this Agreement or (2) seeking to prohibit or limit the ownership or operation by Acquired Company or RDAR, or to dispose of or hold separate any material portion of the business or assets of Acquired Company or RDAR. 

 

6.2Conditions Precedent to Obligations of RDAR. The obligation of RDAR to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of Acquired Company in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and Acquired Company shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by each of them prior to the Effective Time. 

 

(b)Consents. RDAR shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of Acquired Company that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on Acquired Company. 

 

(d)Board Resolutions. RDAR shall have received resolutions duly adopted by Acquired  


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Company’s board of directors and the Owner’s board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement.

 

(e)Other Approvals. RDAR shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. RDAR shall be reasonably satisfied with the results of its due diligence investigation of Acquired Company in its sole and absolute discretion. 

 

6.3Conditions Precedent to Obligation of Acquired Company. The obligation of Acquired Company to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of RDAR in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and RDAR shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by it prior to the Effective Time. 

 

(b)Consents. Acquired Company shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of RDAR that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on RDAR. 

 

(d)Board Resolutions. Acquired Company shall have received resolutions duly adopted by RDAR’s board of directors and the Owner’s board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement. 

 

(e)Other Approvals. Acquired Company shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. Acquired Company shall be reasonably satisfied with the results of its due diligence investigation of RDAR in its sole and absolute discretion. 

 

6.4Conditions Subsequent. 

 

(a)Regulation A Offering. Should RDAR fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before the 20th day following the Closing, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 


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(b)Regulation A Offering Proceeds. Should RDAR fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, the Members shall have the right, but not the obligation, to rescind this Agreement by unanimous written notice to RDAR (the “Rescission Notice”). Upon RDAR’s receipt of the Rescission Notice, this Agreement shall, ipso facto, be rescinded and the Parties returned to their statuses quo ante. 

 

(c)Divestiture. Should RDAR fail to have divested of its current operations, which divestiture shall include all debts, other than the trade payables of RDAR listed on Exhibit D attached hereto and incorporated herein, of RDAR as of the Closing Date, on or before December 31, 2024, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 

 

Article VII.

Closing

 

7.1RDAR shall make the following deliveries at the Closing. To consummate the transaction, RDAR shall, at the Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit E attached hereto; 

 

(b)Executed written consent of the Board of Directors or RDAR authorizing each of the Change-in-Control Agreement, including this Agreement, and the issuance of the Exchange Shares; 

 

(c)A fully executed US Mexedia SPA; 

 

(d)A fully executed Redemption Agreement; and 

 

(e)The Exchange Shares, in the form of the Exchange Shares Certificate. 

 

7.2Acquired Company and the Owner shall make the following deliveries at the Closing. To consummate the transaction Acquired Company and the Owner shall, at Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit F attached hereto; 

 

(b)A fully executed US Mexedia SPA; and 

 

(c)The Ownership Interest, duly assigned to RDAR. 

 

Article VIII.

Termination, Amendment and Waiver

 

8.1Termination. This Agreement may be terminated and abandoned at any time prior to the Effective Time of the Share Exchange: 

 

(a)by mutual written consent of RDAR and Acquired Company; 

 

(b)by either RDAR or Acquired Company if any Governmental Entity shall have issued an order, decree or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the  


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Share Exchange and such order, decree, ruling or other action shall have become final and non-appealable;

 

(c)by either RDAR or Acquired Company if the Share Exchange shall not have been consummated on or before January 31, 2025 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed at or prior to the Effective Time). 

 

(d)by RDAR, if a material adverse change shall have occurred relative to Acquired Company (and not curable within 10 days); 

 

(e)by Acquired Company if a material adverse change shall have occurred relative to RDAR (and not curable within thirty 10 days); 

 

(f)by RDAR, if Acquired Company willfully fails to perform in any material respect any of its material obligations under this Agreement; or 

 

(g)by Acquired Company, if RDAR willfully fails to perform in any material respect any of its obligations under this Agreement. 

 

8.2Effect of Termination. In the event of termination of this Agreement by either Acquired Company or RDAR as provided in Section 8.1, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of RDAR or Acquired Company, other than the provisions of this Section 8.2. Nothing contained in this Section 8.2 shall relieve any party for any breach of the representations, warranties, covenants or agreements set forth in this Agreement. 

 

8.3Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties upon approval by the party, if such party is an individual, and upon approval of the Board of Director of RDAR and of Acquired Company. 

 

8.4Extension; Waiver. Subject to Section 8.1(c), at any time prior to the Effective Time, the parties may (a) extend the time for the performance of any of the obligations or other acts of the other parties, (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement, or (c) waive compliance with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 

 

8.5Return of Documents. In the event of termination of this Agreement for any reason, RDAR and Acquired Company will return to the other party all of the other party’s documents, work papers, and other materials (including copies) relating to the transactions contemplated in this Agreement, whether obtained before or after execution of this Agreement. RDAR and Acquired Company will not use any information so obtained from the other party for any purpose and will take all reasonable steps to have such other party’s information kept confidential. 

 

Article IX.

Indemnification and Related Matters

 

9.1Survival of Representations and Warranties. The representations and warranties in this  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 20



Agreement or in any instrument delivered pursuant to this Agreement, including any disclosure schedule, shall survive until twelve (12) months after the Effective Time (except for with respect to Taxes, which shall survive for the applicable statute of limitations plus 90 days, and covenants that by their terms survive for a longer period). The right to any remedy based upon such representations and warranties shall not be affected by any investigation conducted with respect to, or any knowledge acquired at any time, whether before or after execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of any such representation or warranty.

 

9.2Indemnification. 

 

(a)RDAR shall indemnify and hold Acquired Company and Acquired Company’s officers and directors (“Acquired Company Representatives”) harmless for, from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever) (collectively, “Losses”) to which RDAR may become subject resulting from or arising out of any breach of a representation, warranty or covenant made by RDAR as set forth herein. 

 

(b)Acquired Company shall indemnify and hold RDAR and RDAR’s officers and directors (“RDAR’s Representatives”) harmless for, from and against any and all Losses to which RDAR or RDAR’s Representatives may become subject resulting from or arising out of (1) any breach of a representation, warranty or covenant made by Acquired Company as set forth herein; or (2) any and all liabilities arising out of or in connection with: (A) any of the assets of Acquired Company prior to the Closing; or (B) the operations of Acquired Company prior to the Closing. 

 

9.3Notice of Indemnification. Promptly after the receipt by any indemnified party (the “Indemnitee”) of notice of the commencement of any action or proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto is or may be made against any indemnifying party (the “Indemnifying Party”) pursuant to this Article IX, give such Indemnifying Party written notice of the commencement of such action or proceeding and give such Indemnifying Party a copy of such claim and/or process and all legal pleadings in connection therewith. The failure to give such notice shall not relieve any Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. Such Indemnifying Party shall have, upon request within thirty (30) days after receipt of such notice, but not in any event after the settlement or compromise of such claim, the right to defend, at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any such matter involving the asserted liability of the Indemnitee; provided, however, that if the Indemnitee determines that there is a reasonable probability that a claim may materially and adversely affect it, other than solely as a result of money payments required to be reimbursed in full by such Indemnifying Party under this Article IX or if a conflict of interest exists between Indemnitee and the Indemnifying Party, the Indemnitee shall have the right to defend, compromise or settle such claim or suit; and, provided, further, that such settlement or compromise shall not, unless consented to in writing by such Indemnifying Party, which shall not be unreasonably withheld, be conclusive as to the liability of such Indemnifying Party to the Indemnitee. In any event, the Indemnitee, such Indemnifying Party and its counsel shall cooperate in the defense against, or compromise of, any such asserted liability, and in cases where the Indemnifying Party shall have assumed the defense, the Indemnitee shall have the right to participate in the defense of such asserted liability at the Indemnitee’s own expense. In the event that such Indemnifying Party shall decline to participate in or assume the defense of such action, prior to paying or settling any claim against which such Indemnifying Party is, or may be, obligated under this Article IX to indemnify an Indemnitee, the Indemnitee shall first supply such Indemnifying Party with a copy of a final court judgment or decree holding  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 21



the Indemnitee liable on such claim or, failing such judgment or decree, the terms and conditions of the settlement or compromise of such claim. An Indemnitee’s failure to supply such final court judgment or decree or the terms and conditions of a settlement or compromise to such Indemnifying Party shall not relieve such Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. If the Indemnifying Party is defending the claim as set forth above, the Indemnifying Party shall have the right to settle the claim only with the consent of the Indemnitee.

 

Article X.

General Provisions

 

10.1Notices. Any and all notices and other communications hereunder shall be in writing and shall be deemed duly given to the party to whom the same is so delivered, sent or mailed at addresses and contact information set forth below (or at such other address for a party as shall be specified by like notice.) Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be deemed given and effective on the earliest of: (a) on the date of transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth on the signature pages attached hereto prior to 5:30 p.m. (Eastern Time) on a business day, (b) on the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (Eastern Time) on any business day, (c) on the second business day following the date of mailing, if sent by a nationally recognized overnight courier service, or (d) if by personal delivery, upon actual receipt by the party to whom such notice is required to be given. 

 

If to RDAR prior to Closing:7950 East Redfield Road, Unit 210 

Scottsdale, AZ 85260 

 

If to Acquired Company:17 Clanwilliam Square, Grand Canal Quay 

Dublin 2 D02 DH98, Republic of Ireland 

 

If to the Owner:Via di Affogalasino, 105  -  00148 Roma RM 

 

10.2Definitions. For purposes of this Agreement: 

 

(a)an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person; 

 

(b)“material adverse change” or “material adverse effect” means, when used in connection with Acquired Company or RDAR, any change or effect that either individually or in the aggregate with all other such changes or effects is materially adverse to the business, assets, properties, condition (financial or otherwise) or results of operations of such party and its subsidiaries taken as a whole (after giving effect in the case of RDAR to the consummation of the Share Exchange); 

 

(c)“person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity; and 

 

(d)a “subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of Directors or other governing body (or, if there are no such voting interests, fifty percent (50%) or more of the equity interests of which) is owned directly or indirectly by such first person. 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 22



 

10.3Interpretation. When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 

 

10.4Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other agreements referred to herein constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement. This Agreement is not intended to confer upon any person other than the parties any rights or remedies. 

 

10.5Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. 

 

10.6Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. 

 

10.7Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court of the United States located in the State of Nevada, this being in addition to any other remedy to which they are entitled at law or in equity. In addition, each of the parties hereto (a) agrees that it will not attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court, and (b) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any state court other than such court. 

 

10.8Severability. Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein. 

 

10.9Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement. This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “ Electronic Delivery “), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other party hereto shall re-execute original forms hereof and deliver them in person to all other parties. No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the  


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 23



extent such defense related to lack of authenticity.

 

10.10Attorneys’ Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of this Agreement, the parties hereto agree that the prevailing party or parties shall be entitled to recover from the other party or parties upon final judgment on the merits reasonable attorneys’ fees, including attorneys’ fees for any appeal, and costs incurred in bringing such suit or proceeding. 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 24



[ SIGNATURE PAGE TO SHARE EXCHANGE AGREEMENT ]

 

 

IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Agreement as of the date first above written. 

 

RDAR:ACQUIRED COMPANY: 

 

RAADR, INC.MEXEDIA DAC 

 

 

By: /s/ Jacob DiMartinoBy: /s/ Orlando DiMartino 

Jacob DiMartinoOrlando Taddeo 

Chief Executive OfficerPresident 

E-Mail: jacob.d@raadr.comE-Mail: otaddeo@mexedia.com 

 

OWNER: 

 

MEXEDIA S.p.A. S.B. 

 

 

By: /s/ Orlando DiMartino 

Orlando Taddeo 

President 

E-Mail: otaddeo@mexedia.com 

 

 

 

 

 

 

 

 

 

 

 

 

 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 25



EXHIBIT A

 

Certificate of Designation of Series F Preferred Stock

 

 

 

TERMS OF SERIES F PREFERRED STOCK

 

Section 1. Designation, Amount and Par Value. The series of Preferred Stock shall be designated as Series F Preferred Stock (the “Series F Preferred Stock”) and the number of shares so designated shall be Seventy-Five Thousand (75,000). Each share of the Series F Preferred Stock shall have a par value of $0.001. 

 

Section 2. Fractional Shares. The Series F Preferred Stock may be issued in fractional shares. 

 

Section 3. Voting Rights. The holders of the Series F Preferred Stock shall, as a class, have rights in all matters requiring shareholder approval to a number of votes equal to two (2) times the sum of: 

 

(a)The total number of shares of Company common stock (the “Common Stock”) which are issued and outstanding at the time of any election or vote by the shareholders; plus 

 

(b)The number of votes allocated to shares of Preferred Stock issued and outstanding of any other class that shall have voting rights. 

 

Section 4. Dividends. The holders of the Series F Preferred Stock shall not be entitled to receive dividends paid on the Common Stock. 

 

Section 5. Liquidation. The holders of the Series F Preferred Stock shall not be entitled to any liquidation preference. 

 

Section 6. Conversion and Adjustments. 

 

(a)Conversion Rate. The Series F Preferred Stock shall be convertible into shares of the Company’s common stock, as follows: 

 

Each share of Series F Preferred Stock shall be convertible at any time into a number of shares of Common Stock that equals one-thousandth of one percent (0.001%) of the number of issued and outstanding shares of the Common Stock outstanding on the date of conversion, such that 1,000 shares of Series F Preferred Stock would convert into one percent (1%) of the number of issued and outstanding shares of the Common Stock outstanding on the date of conversion (the “Conversion Rate”). 

 

(b)No Partial Conversion. A holder of shares of Series F Preferred Stock shall be required to convert all of such holder’s shares of Series F Preferred Stock, should any such holder exercise his, her or its rights of conversion. 

 

(c)Adjustment for Merger and Reorganization, etc. If there shall occur any reorganization, recapitalization, reclassification, consolidation or merger (a “Reorganization Event”) involving the Company in which the Common Stock (but not the Series F Preferred Stock) is converted into or exchanged for securities, cash or other property, then each share of Series F Preferred Stock shall be deemed to have been converted into shares of the Common Stock at the Conversion Rate. 

 

Section 7. Protection Provisions. So long as any shares of Series F Preferred Stock are outstanding, the Company shall not, without first obtaining the majority written consent of the holders of Series F Preferred Stock, alter or change the rights, preferences or privileges of the Series F Preferred Stock so as to affect adversely the holders of Series F Preferred Stock. 

 

Section 8. Waiver. Any of the rights, preferences or privileges of the holders of the Series F Preferred Stock may be waived by the affirmative consent or vote of the holders of at least a majority of the shares of Series F Preferred Stock then outstanding. 

 

Section 9. No Other Rights or Privileges. Except as specifically set forth herein, the holder(s) of the shares of Series F Preferred Stock shall have no other rights, privileges or preferences with respect to the Series F Preferred Stock. 


MEXEDIA DAC SHARE EXCHANGE AGREEMENT   |   PAGE 26



EXHIBIT B

 

Form of US Mexedia SPA

 

 

 

SHARE EXCHANGE AGREEMENT

 

This Share Exchange Agreement (this “Agreement”) is entered into as of this ____ day of September, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Mexedia Inc., a Florida corporation (“Acquired Company”), and Mexedia S.p.A. S.B., the owner of Acquired Company (the “Owner”). 

 

RECITALS

 

WHEREAS, this Agreement is one of a series of agreements that would, when consummated, result in the Company’s (a) having acquired businesses and assets valued in excess of USD$60,000,000 and (b) having undergone a change in control (collectively, the “Change-in-Control Agreements”);

 

WHEREAS, the Boards of Directors of RDAR, Acquired Company and the Owner have determined that an acquisition of all of the issued and outstanding shares of capital stock of Acquired Company by RDAR through a share exchange upon the terms and subject to the conditions set forth in this Agreement (the “Share Exchange”) would be in the best interests of RDAR, Acquired Company and the Owner; and

 

WHEREAS, and the Boards of Directors of RDAR and Acquired Company have each approved the Share Exchange; and

 

WHEREAS, this Agreement is under consideration by the Board of Directors of the Owner for formal determination and approval; and

 

WHEREAS, pursuant to the Share Exchange, all of the right, title and interest in and to all of the issued and outstanding shares of capital stock of Acquired Company (the “Ownership Interest”) will be exchanged for 45,000 shares of Series F Preferred Stock of RDAR, the Certificate of Designation of which is attached hereto as Exhibit A, including the common stock into which such shares may be converted (the “Exchange Shares”); and

 

WHEREAS, RDAR, Acquired Company and the Owner desire to make certain representations, warranties, covenants and agreements in connection with the Share Exchange and also to prescribe various conditions to the Share Exchange.

 

NOW, THEREFORE, in consideration of the representations, warranties, covenants and agreements contained in this Agreement, the parties agree as follows: 

 

Article I.

The Exchange

 

1.1Share Exchange. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the Nevada Revised Statutes (the “Nevada Statutes”), at the Closing (defined below), the parties shall do the following: 

 

(a)Acquired Company shall cause the Owner to convey, assign and transfer the Ownership Interest to RDAR by delivering to RDAR duly executed assignments in proper form for transfer. The Ownership Interest transferred to RDAR at the Closing shall constitute 100% of the issued and outstanding shares of capital stock of Acquired Company. 

 

(b)As consideration for its acquisition of the Ownership Interest, RDAR shall issue the Exchange Shares to the Owner by delivering a book entry record to the Owner evidencing the Exchange Shares (the “Exchange Shares Certificate”). 

 

1.2Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VIII, the closing date of the Exchange (the “Closing”) will take place on the business day upon satisfaction of the conditions set forth in Article VI (or as soon as practicable thereafter following satisfaction or waiver of the conditions set forth in Article VI) (the “Closing Date”), at such time and location as may be agreed upon by RDAR and Acquired Compan; provided, however, that the Closing shall take place no later than January 31, 2025. 

 

1.3Reorganization. 

 

(a)As of the Closing, Jacob DiMartino shall resign as RDAR’s sole director and officer and Orlando Taddeo shall be appointed as the sole director and officer of RDAR. 




(b)If at any time after the Closing, any party shall consider that any further deeds, assignments, conveyances, agreements, documents, instruments or assurances in law or any other things are necessary or desirable to vest, perfect, confirm or record in RDAR the title to any property, rights, privileges, powers and franchises of Acquired Company by reason of, or as a result of, the Share Exchange, or otherwise to carry out the provisions of this Agreement, the remaining parties, as applicable, shall execute and deliver, upon request, any instruments or assurances, and do all other things necessary or proper to vest, perfect, confirm or record title to such property, rights, privileges, powers and franchises in RDAR, and otherwise to carry out the provisions of this Agreement. 

 

Article II.

Compliance with Applicable Securities Laws

 

2.1Covenants, Representations and Warranties of the Owner. 

 

(a)The Owner acknowledges and agrees that it is acquiring the Exchange Shares for investment purposes and will not offer, sell or otherwise transfer, pledge or hypothecate any of the Exchange Shares issued to them (other than pursuant to an effective Registration Statement under the Securities Act of 1933, as amended (the “Securities Act”)) directly or indirectly unless: 

 

(1)the sale is to RDAR; or 

 

(2)the Exchange Shares are sold in a transaction that does not require registration under the Securities Act, or any applicable United States state laws and regulations governing the offer and sale of securities, and the seller has furnished to RDAR an opinion of counsel to that effect or such other written opinion as may be reasonably required by RDAR. 

 

(b)The Owner acknowledges and agrees that the book entry record representing the Exchange Shares shall bear a restrictive legend, substantially in the following form: 

 

“THE SECURITIES REPRESENTED BY THIS STOCK CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”) OR APPLICABLE STATE SECURITIES LAWS, AND SHALL NOT BE SOLD, PLEDGED, HYPOTHECATED, DONATED, OR OTHERWISE TRANSFERRED (WHETHER OR NOT FOR CONSIDERATION) BY THE HOLDER EXCEPT UPON THE ISSUANCE TO THE COMPANY OF A FAVORABLE OPINION OF ITS COUNSEL OR THE SUBMISSION TO THE COMPANY OF SUCH OTHER EVIDENCE AS MAY BE SATISFACTORY TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT ANY SUCH TRANSFER SHALL NOT BE IN VIOLATION OF THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS.”

 

(c)The Owner represents and warrants that it: 

 

(1)is not aware of any advertisement of, or other form or general solicitation with respect to, any of the Exchange Shares being issued hereunder; 

 

(2)acknowledges and agrees that RDAR will refuse to register any transfer of the Exchange Shares not made pursuant to an effective registration statement under the Securities Act or pursuant to an available exemption from the registration requirements of the Securities Act and in accordance with applicable state and provincial securities laws; and 

 

(3)acknowledges and agrees to RDAR making a notation on its records or giving instructions to the registrar and transfer agent of RDAR in order to implement the restrictions on transfer set forth and described herein. 

 

Article III.

Representations and Warranties

 

3.1Representations and Warranties of Acquired Company and the Owner. As a material inducement for RDAR to enter into this Agreement and to consummate the transactions contemplated hereby, Acquired Company and the Owner hereby make the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by RDAR regardless of any investigation made or information obtained by RDAR (unless and to the extent specifically and expressly waived in writing by RDAR on or before the Closing Date): 

 

(a)Organization, Standing and Power; No Disability. Acquired Company is duly organized, validly existing and in good standing under the laws of the State of Florida. The Owner is duly organized, validly existing and in good standing under the laws of its organization. 

 

(b)Subsidiaries. Acquired Company has two subsidiaries: (1) Matchcom Technologies, Inc., a Florida corporation; and (2) Phonetime, Inc., a Florida corporation. 

 

(c)Corporate Documents. Schedule 3.1(c) contains true and correct copies of the Articles of Incorporation and bylaws of Acquired Company, each as amended to date. 

 

(d)Ownership Interest. The Ownership Interest represents 100% of the issued and outstanding shares of capital stock of  




Acquired Company. Acquired Company also warrants that there are no outstanding bonds, debentures, notes or other indebtedness or other securities of Acquired Company. There are no rights, commitments, agreements, arrangements or undertakings of any kind to which Acquired Company is a party or by which it is bound obligating Acquired Company to issue, deliver or sell, or cause to be issued, delivered or sold, additional ownership interests of Acquired Company or obligating Acquired Company to issue, grant, extend or enter into any such right, commitment, agreement, arrangement or undertaking. There are no outstanding contractual obligations, commitments, understandings or arrangements of Acquired Company to repurchase, redeem or otherwise acquire or make any payment in respect of the capital stock of Acquired Company.

 

(e)Capitalization of Acquired Company. Schedule 3(e) sets forth the issued and outstanding shares of capital stock of Acquired Company (the Ownership Interest). All of Acquired Company’s issued and outstanding shares of capital stock have been duly authorized, are validly issued, fully paid and non-assessable. 

 

(f)Authority; Non-contravention. Acquired Company and the Owner have all requisite power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by Acquired Company and its Owner and the consummation by Acquired Company and the Owner of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary action on the part of Acquired Company. This Agreement has been duly executed and when delivered by Acquired Company and the Owner shall constitute a valid and binding obligation of Acquired Company and the Owner, enforceable against Acquired Company and the Owner, as applicable, in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to a loss of a material benefit under, or result in the creation of any lien upon any of the properties or assets of Acquired Company under, (1) the articles of incorporation or bylaws of Acquired Company, (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to Acquired Company, its properties or assets, or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to Acquired Company, its properties or assets, other than, in the case of clauses (ii) and (iii), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to Acquired Company or could not prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement. 

 

(g)Governmental Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any United States court, administrative agency or commission, or other federal, state or local government or other governmental authority, agency, domestic or foreign (a “Governmental Entity”), is required by or with respect to Acquired Company in connection with the execution and delivery of this Agreement by Acquired Company or the consummation by Acquired Company of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Securities Act or the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder (the “Exchange Act”) or pursuant to the rules of OTC Markets. 

 

(h)Financial Statements. 

 

(1)At Closing, RDAR will have received from Acquired Company a copy of its unaudited financial statements for the years ended December 31, 2023 and 2022, and for the six months ended June 30, 2024 (collectively, the “Acquired Company Financial Statements”). The Acquired Company Financial Statements fairly present the financial condition of Acquired Company at the dates indicated and its results of operations and cash flows for the periods then ended and, except as indicated therein, reflect all claims, debts and liabilities of Acquired Company, fixed or contingent, and of whatever nature. 

 

(2)Since June 30, 2024, there has been no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operations or prospects, of Acquired Company, whether as a result of any legislative or regulatory change, revocation of any license or rights to do business, fire, explosion, accident, casualty, labor trouble, flood, drought, riot, storm, condemnation, act of God, public force or otherwise and no material adverse change in the assets or liabilities, or in the business or condition, financial or otherwise, or in the results of operation or prospects, of Acquired Company except in the ordinary course of business. 

 

(3)Since June 30, 2024, Acquired Company has not issued, sold or otherwise disposed of, or agreed to issue, sell or otherwise dispose of, any securities of Acquired Company, and has not granted or agreed to grant any other right to subscribe for or to purchase any securities of Acquired Company or has incurred or agreed to incur any indebtedness for borrowed money. 

 

(i)Absence of Certain Changes or Events. Since June 30, 2024, Acquired Company has conducted its business only in the ordinary course consistent with past practice, and there is not and has not been any: 

 

(1)material adverse change with respect to Acquired Company including any amendments to its formation and governance documents; 

 

(2)event which, if it had taken place following the execution of this Agreement, would not have been permitted by Section 4.1 without prior consent of RDAR; 

 

(3)condition, event or occurrence which could reasonably be expected to prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement; 




(4)incurrence, assumption or guarantee by Acquired Company of any indebtedness for borrowed money other than in the ordinary course and in amounts and on terms consistent with past practices or as disclosed to RDAR in writing; 

 

 

(5)creation or other incurrence by Acquired Company of any lien on any asset other than in the ordinary course consistent with past practices; 

 

(6)transaction or commitment made, or any contract or agreement entered into, by Acquired Company relating to its assets or business (including the acquisition or disposition of any assets) or any relinquishment by Acquired Company of any contract or other right, in either case, material to Acquired Company, other than transactions and commitments in the ordinary course consistent with past practices and those contemplated by this Agreement; 

 

(7)labor dispute, other than routine, individual grievances, or, to the knowledge of Acquired Company, any activity or proceeding by a labor union or representative thereof to organize any employees of Acquired Company or any lockouts, strikes, slowdowns, work stoppages or threats by or with respect to such employees; 

 

(8)payment, prepayment or discharge of liability other than in the ordinary course of business or any failure to pay any liability when due; 

 

(9)write-offs or write-downs of any assets of Acquired Company; 

 

(10)creation, termination or amendment of, or waiver of any right under, any material contract of Acquired Company; 

 

(11)damage, destruction or loss having, or reasonably expected to have, a material adverse effect on Acquired Company; 

 

(12)other condition, event or occurrence which individually or in the aggregate could reasonably be expected to have a material adverse effect or give rise to a material adverse change with respect to Acquired Company; or 

 

(13)agreement or commitment to do any of the foregoing. 

 

(j)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by Acquired Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(k)Litigation; Labor Matters; Compliance with Laws. 

 

(1)Except as set forth in Schedule 3(k)(1), there is no suit, action or proceeding or investigation pending or, to the knowledge of Acquired Company, threatened against or affecting Acquired Company or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to Acquired Company or prevent, hinder or materially delay the ability of Acquired Company to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any governmental entity or arbitrator outstanding against Acquired Company having, or which, insofar as reasonably could be foreseen by Acquired Company, in the future could have, any such effect. 

 

(2)Acquired Company is not a party to, or bound by, any collective bargaining agreement, contract or other agreement or understanding with a labor union or labor organization, nor is it the subject of any proceeding asserting that it has committed an unfair labor practice or seeking to compel it to bargain with any labor organization as to wages or conditions of employment nor is there any strike, work stoppage or other labor dispute involving it pending or, to its knowledge, threatened, any of which could have a material adverse effect with respect to Acquired Company. 

 

(3)The conduct of the business of Acquired Company complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 

 

(l)Benefit Plans. Acquired Company is not a party to any Benefit Plan under which Acquired Company currently has an obligation to provide benefits to any current or former employee, officer or director of Acquired Company. As used herein, “Benefit Plan” shall mean any employee benefit plan, program, or arrangement of any kind, including any defined benefit or defined contribution plan, ownership plan with respect to any membership interest, executive compensation program or arrangement, bonus plan, incentive compensation plan or arrangement, profit sharing plan or arrangement, deferred compensation plan, agreement or arrangement, supplemental retirement plan or arrangement, vacation pay, sickness, disability, or death benefit plan (whether provided through insurance, on a funded or unfunded basis, or otherwise), medical or life insurance plan providing benefits to employees, retirees, or former employees or any of their dependents, survivors, or beneficiaries, severance pay, termination, salary continuation, or employee assistance plan. 

 

(m)Tax Returns and Tax Payments. 

 

(1)Acquired Company has timely filed with the appropriate taxing authorities all Tax Returns, as that term is  




hereinafter defined, required to be filed by it (taking into account all applicable extensions). All such Tax Returns are true, correct and complete in all respects. All Taxes, as that term is hereinafter defined, due and owing by Acquired Company have been paid (whether or not shown on any Tax Return and whether or not any Tax Return was required). Acquired Company is not currently the beneficiary of any extension of time within which to file any Tax Return or pay any Tax. No claim has ever been made in writing or otherwise addressed to Acquired Company by a taxing authority in a jurisdiction where Acquired Company does not fileTax Returns that it is or may be subject to taxation by that jurisdiction. Since inception, Acquired Company has not incurred any liability for Taxes outside the ordinary course of business consistent with past custom and practice.

 

(2)No material claim for unpaid Taxes has been made or become a lien against the property of Acquired Company or is being asserted against Acquired Company, no audit of any Tax Return of Acquired Company is being conducted by a tax authority, and no extension of the statute of limitations on the assessment of any Taxes has been granted by Acquired Company and is currently in effect. Acquired Company has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee, independent contractor, creditor, stockholder or other third party. 

 

(3)As used herein, “Taxes” shall mean all taxes of any kind, including, without limitation, those on or measured by or referred to as income, gross receipts, sales, use, ad valorem, franchise, profits, license, withholding, payroll, employment, excise, severance, stamp, occupation, premium value added, property or windfall profits taxes, customs, duties or similar fees, assessments or charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts imposed by any governmental authority, domestic or foreign. As used herein, “ Tax Return “ shall mean any return, report or statement required to be filed with any governmental authority with respect to Taxes. 

 

(n)Environmental Matters. Acquired Company is in compliance with all Environmental Laws in all material respects. Acquired Company has not received any written notice regarding any violation of any Environmental Laws, as that term is hereinafter defined, including any investigatory, remedial or corrective obligations. Acquired Company holds all permits and authorizations required under applicable Environmental Laws, unless the failure to hold such permits and authorizations would not have a material adverse effect on Acquired Company, and is in compliance with all terms, conditions and provisions of all such permits and authorizations in all material respects. No releases of Hazardous Materials, as that term is hereinafter defined, have occurred at, from, in, to, on or under any real property currently or formerly owned, operated or leased by Acquired Company or any predecessor thereof and no Hazardous Materials are present in, on, about or migrating to or from any such property which could result in any liability to Acquired Company. Acquired Company has not transported or arranged for the treatment, storage, handling, disposal, or transportation of any Hazardous Material to any off-site location which could result in any liability to Acquired Company. Acquired Company has no liability, absolute or contingent, under any Environmental Law that if enforced or collected would have a material adverse effect on Acquired Company. There are no past, pending or threatened claims under Environmental Laws against Acquired Company and Acquired Company is not aware of any facts or circumstances that could reasonably be expected to result in a liability or claim against Acquired Company pursuant to Environmental Laws. “Environmental Laws” means all applicable foreign, federal, state and local statutes, rules, regulations, ordinances, orders, decrees and common law relating in any manner to contamination, pollution or protection of human health or the environment, and similar state laws. “Hazardous Material” means any toxic, radioactive, corrosive or otherwise hazardous substance, including petroleum, its derivatives, by-products and other hydrocarbons, or any substance having any constituent elements displaying any of the foregoing characteristics, which in any event is regulated under any Environmental Law. 

 

(o)Material Contracts. All Material Contracts copies of which have been furnished to RDAR. Acquired Company is not, or has not received any notice or has any knowledge that any other party is, in default in any respect under any Material Contract, as that term is hereinafter defined; and there has not occurred any event that with the lapse of time or the giving of notice or both would constitute such a material default. 

 

For purposes of this Agreement, a “Material Contract” means any contract, agreement or commitment that is effective as of the Closing Date to which Acquired Company is a party (1) with expected receipts or expenditures in an amount in excess of two percent (2%) of Acquired Company’s gross revenues for the 12 months ended July 31, 2025, (2) requiring Acquired Company to indemnify any person in an amount that is expected to exceed ten percent (10%) of Acquired Company’s owners’ equity as of the date of Closing, (3) granting exclusive rights to any party, (4) evidencing indebtedness for borrowed or loaned money in an amount in excess of ten percent (10%) of Acquired Company’s owners’ equity, including guarantees of such indebtedness, as of the date of Closing, or (5) which, if breached by Acquired Company in such a manner would (A) permit any other party to cancel or terminate the same (with or without notice of passage of time) or (B) provide a basis for any other party to claim money damages (either individually or in the aggregate with all other such claims under that contract) from Acquired Company or (C) give rise to a right of acceleration of any material obligation or loss of any material benefit under any such contract, agreement or commitment. 

 

(p)Properties. Acquired Company has no real property. Any facilities held under lease by Acquired Company is held by it under valid, subsisting and enforceable leases of which Acquired Company is in compliance, except as could not, individually or in the aggregate, have or reasonably be expected to result in a material adverse effect. 

 

(q)Intellectual Property. 

 

(1)As used in this Agreement, the term “Trademarks” means trademarks, service marks, trade names, internet domain names, designs, slogans, and general intangibles of like nature; the term “Trade Secrets” means technology; trade secrets and other confidential information, know-how, proprietary processes, formulae, algorithms, models, and methodologies; the term “ Intellectual Property “ means patents, copyrights, Trademarks, applications for any of the foregoing, and Trade Secrets; the term “ Company License Agreements “ means any license agreements granting any right to use or practice any rights under any Intellectual Property (except for such agreements for off-the-shelf products that are generally available for less than $10,000), and any written settlements relating to any Intellectual Property, to which Acquired Company is a party or otherwise bound; and the term “ Software “ means any and all computer programs, including any and all software  




implementations of algorithms, models and methodologies, whether in source code or object code.

 

(2)Acquired Company owns or has valid rights to use the Trademarks, trade names, domain names, copyrights, patents, logos, licenses and computer software programs (including, without limitation, the source codes thereto) that are necessary for the conduct of its respective businesses as now being conducted. To the knowledge of Acquired Company, none of Acquired Company’s Intellectual Property or License Agreements infringe upon the rights of any third party that may give rise to a cause of action or claim against Acquired Company or its successors. 

 

(r)Affiliate Transactions. Except as set forth in Schedule 3(r), no officer, director or employee of Acquired Company or any member of the immediate family of any such officer, director or employee, or any entity in which any of such persons owns any beneficial interest (other than any publicly-held corporation whose stock is traded on a national securities exchange or in the over-the-counter market and less than one percent of the stock of which is beneficially owned by any of such persons), has any agreement with Acquired Company or any interest in any of their property of any nature, used in or pertaining to the business of Acquired Company. None of the foregoing persons has any direct or indirect interest in any competitor, supplier or customer of Acquired Company or in any person from whom or to whom Acquired Company leases any property or transacts business of any nature. 

 

(s)Undisclosed Liabilities. Except as set forth in Schedule 3(s), Acquired Company has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise.) 

 

(t)Full Disclosure. All of the representations and warranties made by Acquired Company in this Agreement, and all statements set forth in the certificates delivered by Acquired Company at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by Acquired Company pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to RDAR or its representatives by or on behalf of any of Acquired Company or its affiliates in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading. 

 

3.2Representations and Warranties of RDAR. As a material inducement for Acquired Company and the Owner to enter into this Agreement and to consummate the transactions contemplated hereby, RDAR hereby makes the following representations and warranties as of the date hereof and as of the Closing Date, each of which is relied upon by Acquired Company regardless of any investigation made or information obtained by Acquired Company (unless and to the extent specifically and expressly waived in writing by Acquired Company on or before the Closing Date): 

 

(a)Organization, Standing and Corporate Power. RDAR is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada and has the requisite corporate power and authority and all government licenses, authorizations, permits, consents and approvals required to own, lease and operate its properties and carry on its business as now being conducted. RDAR is duly qualified or licensed to do business and is in good standing in each jurisdiction in which the nature of its business or the ownership or leasing of its properties makes such qualification or licensing necessary, other than in such jurisdictions where the failure to be so qualified or licensed (individually or in the aggregate) would not have a material adverse effect with respect to RDAR. 

 

(b)Subsidiaries. RDAR has no subsidiaries. 

 

(c)Capitalization of RDAR. The entire authorized capital stock of RDAR consists of 15,000,000,000 common shares, par value $0.001 per share, of which 4,433,149,661 shares are issued and outstanding, and 100,000,000 shares of preferred stock, par value $0.001 per share, (1) 1,000,000 shares of which are designated Series E Preferred Stock and 1,000,000 shares of which are issued and outstanding and (2) 75,000 shares of which are designated Series F Preferred Stock and no shares of which are issued and outstanding. All of RDAR’s issued and outstanding shares have been duly authorized, are validly issued, fully paid and non-assessable. 

 

Except as set forth in Schedule 3.2(c), there are no other shares of RDAR capital stock issuable upon the exercise of outstanding warrants, convertible notes, options or otherwise. Except as set forth in Schedule 3.2(c), no shares of capital stock or other equity securities of RDAR are issued, reserved for issuance or outstanding. 

 

The Exchange Shares will be, when issued, duly authorized, validly issued, fully paid and non-assessable, not subject to preemptive rights and issued in compliance with all applicable state and federal laws concerning the issuance of securities. 

 

(d)Corporate Authority; Non-contravention. RDAR has all requisite corporate and other power and authority to enter into this Agreement and to consummate the transactions contemplated by this Agreement. The execution and delivery of this Agreement by RDAR and the consummation by RDAR of the transactions contemplated hereby have been (or at Closing will have been) duly authorized by all necessary corporate action on the part of RDAR. This Agreement has been duly executed and when delivered by RDAR shall constitute a valid and binding obligation of RDAR, enforceable against RDAR in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency or other similar laws affecting the enforcement of creditors’ rights generally or by general principles of equity. The execution and delivery of this Agreement does not, and the consummation of the transactions contemplated by this Agreement and compliance with the provisions hereof will not, conflict with, or result in any breach or violation of, or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of or “put” right with respect to any obligation or to loss of a material benefit under, or result in the creation  




of any lien upon any of the properties or assets of RDAR under (1) its articles of incorporation, bylaws, or other charter documents; (2) any loan or credit agreement, note, bond, mortgage, indenture, lease or other agreement, instrument, permit, concession, franchise or license applicable to RDAR,its properties or assets; or (3) subject to the governmental filings and other matters referred to in the following sentence, any judgment, order, decree, statute, law, ordinance, rule, regulation or arbitration award applicable to RDAR, its properties or assets, other than, in the case of clauses (2) and (3), any such conflicts, breaches, violations, defaults, rights, losses or liens that individually or in the aggregate could not have a material adverse effect with respect to RDAR or could not prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement.

 

(e)Government Authorization. No consent, approval, order or authorization of, or registration, declaration or filing with, or notice to, any Governmental Entity, is required by or with respect to RDAR in connection with the execution and delivery of this Agreement by RDAR, or the consummation by RDAR of the transactions contemplated hereby, except, with respect to this Agreement, any filings under the Nevada Statutes, the Securities Act or the Exchange Act. 

 

(f)Financial Statements. 

 

(1)The unaudited financial statements of RDAR included in the reports, schedules, forms, statements and other documents filed by RDAR with OTC Markets (collectively, and in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “RDAR Financial Information”) comply as to form in all material respects with applicable accounting requirements and the published rules of OTC Markets with respect thereto, have been prepared in accordance with U.S. generally accepted accounting principles applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present the consolidated financial position of RDAR and its consolidated subsidiaries as of the dates thereof and the consolidated results of operations and changes in cash flows for the periods then ended. Except as set forth in the RDAR Financial Information, at the date of the most recent unaudited financial statements of RDAR included in the RDAR Financial Information, RDAR has not incurred any liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) which, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR. 

 

(2)RDAR has made the following financial information (the RDAR Financial Information) available to Acquired Company: 

 

(A)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the years ended December 31, 2023 and 2022; 

 

(B)unaudited balance sheet and statements of income, changes in stockholders’ equity and cash flow as of and for the six months ended June 30, 2024 (the “RDAR Interim Statements”); and 

 

(C)The RDAR Financial Information presents fairly the financial condition of RDAR as of such dates and the results of operations of RDAR for such periods, in accordance with GAAP and are consistent with the books and records of RDAR (which books and records are correct and complete). 

 

(g)Events Subsequent to RDAR Interim Statements. Since the date of the RDAR Interim Statements, there has not been, occurred or arisen, with respect to RDAR: 

 

(1)any change or amendment in its Articles of Incorporation and/or Bylaws; 

 

(2)any reclassification, split-up or other change in, or amendment of or modification to, the rights of the holders of any of its capital stock, except changes made in relation to the transactions contemplated by this Agreement; 

 

(3)any direct or indirect redemption, purchase or acquisition by any person of any of its capital stock or of any interest in or right to acquire any such stock; 

 

(4)any issuance, sale, or other disposition of any capital stock, or any grant of any options, warrants, or other rights to purchase or obtain (including upon conversion, exchange, or exercise) any capital stock; 

 

(5)any declaration, set aside, or payment of any dividend or any distribution with respect to its capital stock (whether in cash or in kind) or any redemption, purchase, or other acquisition of any of its capital stock; 

 

(6)the organization of any subsidiary or the acquisition of any shares of capital stock by any person or any equity or ownership interest in any business; 

 

(7)any damage, destruction or loss of any of its properties or assets whether or not covered by insurance; 

 

(8)any sale, lease, transfer or assignment of any of its assets, tangible or intangible, other than for a fair consideration in the ordinary course of business; 

 

(9)the execution of, or any other commitment to any agreement, contract, lease, or license (or series of related agreements, contracts, leases, and licenses) outside the ordinary course of business; 




(10)any acceleration, termination, modification, or cancellation of any agreement, contract lease or license (or series of related agreements, contracts, leases, and licenses) involving more than $10,000 to which it is a party or by which it is bound; 

 

(11)any security interest or encumbrance imposed upon any of its assets, tangible; 

 

(12)any capital investment in, any loan to, or any acquisition of the securities or assets of, any other person or entity (or series of related capital investments, loans and acquisitions) involving more than $2,500 and outside the ordinary course of business; 

 

(13)any issuance of any note, bond or other debt security, or created, incurred, assumed, or guaranteed any indebtedness for borrowed money or capitalized lease obligation involving more than $2,500; 

 

(14)any delay or postponement of the payment of accounts payable or other liabilities; 

 

 

(15)any loan to, or any entrance into any other transaction with, any of its directors, officers and employees either involving more than $500 individually or $2,500 in the aggregate; 

 

(16)any employment contract or collective bargaining agreement, written or oral, or modified the terms of any existing such contract or agreement; 

 

(17)any taking of other action or entrance into any other transaction other than in the ordinary course of business, or entrance into any transaction with any insider of RDAR, except as disclosed in this Agreement and any disclosures schedules; 

 

(18)any other event or occurrence that may have or could reasonably be expected to have a material adverse effect on RDAR (whether or not similar to any of the foregoing); or 

 

(19)any agreement, whether in writing or otherwise, to do any of the foregoing. 

 

(h)Certain Fees. No brokerage or finder’s fees or commissions are or will be payable by RDAR to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other person with respect to the transactions contemplated by this Agreement. 

 

(i)Litigation; Labor Matters; Compliance with Laws. 

 

(1)There is no suit, action or proceeding or investigation pending or, to the knowledge of RDAR, threatened against or affecting RDAR or any basis for any such suit, action, proceeding or investigation that, individually or in the aggregate, could reasonably be expected to have a material adverse effect with respect to RDAR or prevent, hinder or materially delay the ability of RDAR to consummate the transactions contemplated by this Agreement, nor is there any judgment, decree, injunction, rule or order of any Governmental Entity or arbitrator outstanding against RDAR having, or which, insofar as reasonably could be foreseen by RDAR, in the future could have, any such effect. 

 

(2)The conduct of the business of RDAR complies with all statutes, laws, regulations, ordinances, rules, judgments, orders, decrees or arbitration awards applicable thereto. 

 

(j)Contracts. Except as set forth in Schedule 3.2(j), RDAR has no written or oral contracts, understandings, agreements and other arrangements executed by an officer or duly authorized employee of RDAR or to which RDAR is a party, except for this Agreement. 

 

(k)OTC Markets Reports and Financial Statements. RDAR has filed with OTC Markets all reports and other filings required to be filed by RDAR in accordance with the rules of OTC Markets (the “RDAR OTC Markets Reports”). As of their respective dates, the RDAR OTC Markets Reports complied in all material respects with the applicable requirements of the Securities Act, the Exchange Act and the respective rules and regulations promulgated thereunder applicable to such RDAR OTC Markets Reports and, except to the extent that information contained in any RDAR OTC Markets Report has been revised or superseded by a later RDAR OTC Markets Report filed and publicly available prior to the date of this Agreement, none of the RDAR OTC Markets Reports contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading. The financial statements of RDAR included in RDAR OTC Markets Reports were prepared from and are in accordance with the accounting books and other financial records of RDAR, were prepared in accordance with GAAP applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and presented fairly the consolidated financial position of RDAR as of the dates thereof and the consolidated results of operations and cash flows for the periods then ended. Except as set forth in the RDAR OTC Markets Reports, RDAR has no liabilities or obligations of any nature (whether accrued, absolute, contingent or otherwise) other than liabilities or obligations incurred in the ordinary course of business. The RDAR OTC Markets Reports accurately disclose (1) the terms and provisions of all stock option plans, (2) transactions with Affiliates and (3) all material contracts. If at any time prior to Closing should RDAR become delinquent in any required filings with OTC Markets, RDAR represents and warrants that such filings shall be brought current in no less than 10 business days from the due date. Until such time as the filing is brought current, RDAR will promptly file any and all reports required to advise the SEC of the failure to file the reports when due. 

 

(l)Board Determination. The Board of Directors of RDAR has unanimously determined that the terms of the Share  




Exchange are fair to and in the best interests of RDAR and its stockholders.

 

(m)Required RDAR Share Issuance Approval. RDAR represents that the issuance of the Exchange Shares to the Owner will be in compliance with the Nevada Statutes and the Bylaws of RDAR, as well as federal and state securities laws. 

 

(n)Undisclosed Liabilities. Except as set forth in Schedule 3.2(n), RDAR has no liabilities or obligations of any nature (whether fixed or unfixed, secured or unsecured, known or unknown and whether absolute, accrued, contingent, or otherwise) except for liabilities or obligations reflected or reserved against in the RDAR OTC Markets Documents incurred in the ordinary course of business. 

 

(o)Full Disclosure. All of the representations and warranties made by RDAR in this Agreement, and all statements set forth in the certificates delivered by RDAR at the Closing pursuant to this Agreement, are true, correct and complete in all material respects and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make such representations, warranties or statements, in light of the circumstances under which they were made, misleading. The copies of all documents furnished by RDAR pursuant to the terms of this Agreement are complete and accurate copies of the original documents. The schedules, certificates, and any and all other statements and information, whether furnished in written or electronic form, to Acquired Company or its representatives by or on behalf of RDAR in connection with the negotiation of this Agreement and the transactions contemplated hereby do not contain any material misstatement of fact or omit to state a material fact or any fact necessary to make the statements contained therein not misleading. 

 

(p)Powers of Attorney. There are no outstanding powers of attorney executed on behalf of RDAR. 

 

Article IV.

Covenants Relating to Conduct of Business Prior to Share Exchange

 

4.1Conduct of Acquired Company and RDAR. From the date of this Agreement and until the Effective Time, or until the prior termination of this Agreement, Acquired Company and RDAR shall not, unless mutually agreed to in writing: 

 

(a)engage in any transaction, except in the normal and ordinary course of business, or create or suffer to exist any lien or other encumbrance upon any of their respective assets or which will not be discharged in full prior to the Effective Time; 

 

(b)sell, assign or otherwise transfer any of their assets, or cancel or compromise any debts or claims relating to their assets, other than for fair value, in the ordinary course of business, and consistent with past practice; 

 

(c)fail to use reasonable efforts to preserve intact their present business organizations, keep available the services of their employees and preserve its material relationships with customers, suppliers, licensors, licensees, distributors and others, to the end that its good will and ongoing business not be impaired prior to the Effective Time; 

 

(d)suffer or permit any material adverse change to occur with respect to Acquired Company and RDAR or their business or assets; and 

 

(e)make any material change with respect to their business in accounting or bookkeeping methods, principles or practices, except as required by GAAP. 

 

4.2Current Information. 

 

(a)During the period from the date of this Agreement to the Closing, each party hereto shall promptly notify each other party of any (1) significant change in its ordinary course of business, (2) proceeding (or communications indicating that the same may be contemplated), or the institution or threat or settlement of proceedings, in each case involving the Parties the outcome of which, if adversely determined, could reasonably be expected to have a material adverse effect on the Party, taken as a whole or (3) event which such Party reasonably believes could be expected to have a material adverse effect on the ability of any party hereto to consummate the Share Exchange. 

 

(b)During the period from the date of this Agreement to the Closing, RDAR shall promptly notify Acquired Company of any correspondence received from OTC Markets or the SEC and shall deliver a copy of such correspondence to Acquired Company within one (1) business day of receipt. 

 

4.3Material Transactions. Prior to the Closing, neither Acquired Company nor RDAR will, without first obtaining the written consent of the other parties hereto: 

 

(a)amend its Articles of Incorporation or Bylaws or enter into any agreement to merge or consolidate with, or sell a significant portion of its assets to, any other Person; 

 

(b)place on any of its assets or properties any pledge, charge or other encumbrance, except as otherwise authorized hereunder, or enter into any transaction or make any contract or commitment relating to its properties, assets and business, other than in the ordinary course of business or as otherwise disclosed herein; 

 

(c)guarantee the obligation of any person, firm or corporation, except in the ordinary course of business; 




(d)make any loan or advance in excess of $2,500 in the aggregate or cancel or accelerate any material indebtedness owing to it or any claims which it may possess or waive any material rights of substantial value; 

 

(e)violate any applicable law which violation might have a material adverse effect on such party; 

 

(f)except in the ordinary course of business, enter into any agreement or transaction with any of such party’s affiliates; or 

 

(g)engage in any transaction or take any action that would render untrue in any material respect any of the representations and warranties of such party contained in this Agreement, as if such representations and warranties were given as of the date of such transaction or action. 

 

Article V.

Additional Agreements

 

5.1Reorganization Agreement: Mexedia DAC. At or prior to the Closing, RDAR, Mexedia DAC (“Mexedia Ireland”) and the owner of Mexedia Ireland shall have entered into a Share Exchange Agreement, in the form of Exhibit B attached hereto (the “Mexedia Ireland SPA”), pursuant to which RDAR would acquire all of the outstanding shares of capital stock of Mexedia Ireland. 

 

5.2Redemption Agreement. At or prior to the Closing, RDAR and JanBella Group, LLC shall have entered into a Redemption Agreement, in the form of Exhibit C attached hereto (the “Redemption Agreement”), pursuant to which RDAR would re-acquire all outstanding shares of Series E Preferred Stock of RDAR. 

 

5.3Access to Information; Confidentiality. 

 

(a)Acquired Company shall, and shall cause its officers, employees, counsel, financial advisors and other representatives to, afford to RDAR and its representatives reasonable access during normal business hours during the period prior to the Effective Time to its and to Acquired Company’s properties, books, contracts, commitments, personnel and records and, during such period, Acquired Company shall, and shall cause its officers, employees and representatives to, furnish promptly to RDAR all information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request. For the purposes of determining the accuracy of the representations and warranties of RDAR set forth herein and compliance by RDAR of its obligations hereunder, during the period prior to the Effective Time, RDAR shall provide Acquired Company and its representatives with reasonable access during normal business hours to its properties, books, contracts, commitments, personnel and records as may be necessary to enable Acquired Company to confirm the accuracy of the representations and warranties of RDAR set forth herein and compliance by RDAR of its obligations hereunder, and, during such period, RDAR shall, and shall cause its officers, employees and representatives to, furnish promptly to Acquired Company upon its request (1) a copy of each report, schedule, registration statement and other document filed by it during such period pursuant to the requirements of federal or state securities laws and (2) all other information concerning its business, properties, financial condition, operations and personnel as such other party may from time to time reasonably request.  

 

Except as required by law, each of Acquired Company and RDAR will hold, and will cause its respective directors, officers, employees, accountants, counsel, financial advisors and other representatives and affiliates to hold, any nonpublic information in confidence. 

 

(b)No investigation pursuant to this Section 5.3 shall affect any representations or warranties of the parties herein or the conditions to the obligations of the parties hereto. 

 

5.4Best Efforts. Upon the terms and subject to the conditions set forth in this Agreement, each of the parties agrees to use its best efforts to take, or cause to be taken, all actions, and to do, or cause to be done, and to assist and cooperate with the other parties in doing, all things necessary, proper or advisable to consummate and make effective, in the most expeditious manner practicable, the Share Exchange and the other transactions contemplated by this Agreement. RDAR and Acquired Company shall mutually cooperate in order to facilitate the achievement of the benefits reasonably anticipated from the Share Exchange. 

 

5.5Public Announcements. RDAR, on the one hand, and Acquired Company, on the other hand, will consult with each other before issuing, and provide each other the opportunity to review and comment upon, any press release or other public statements with respect to the transactions contemplated by this Agreement and shall not issue any such press release or make any such public statement prior to such consultation, except as may be required by applicable law or court process. The parties agree that the initial press release or releases to be issued with respect to the transactions contemplated by this Agreement shall be mutually agreed upon prior to the issuance thereof. 

 

5.6Expenses. All costs and expenses incurred in connection with this Agreement and the transactions contemplated hereby shall be paid by the party incurring such expenses. 

 

5.7No Solicitation. Except as previously agreed to in writing by the other party, neither Acquired Company nor RDAR shall authorize or permit any of its officers, directors, agents, representatives, or advisors to solicit, initiate or encourage or take any action to facilitate the submission of inquiries, proposals or offers from any person relating to any matter concerning any exchange, merger, consolidation, business combination, recapitalization or similar transaction involving Acquired Company or RDAR, respectively, other than the transaction contemplated by this Agreement or any other transaction the consummation of which would or could reasonably be expected to impede, interfere with, prevent or delay the Share Exchange or which would or could be expected to dilute the benefits to either Acquired Company or RDAR of the transactions contemplated hereby. Acquired Company or RDAR will immediately cease and cause to be terminated any existing activities, discussions and  




negotiations with any parties conducted heretofore with respect to any of the foregoing.

 

Article VI.

Conditions Precedent and Conditions Subsequent

 

6.1Conditions to Each Party’s Obligation to Effect the Share Exchange. The obligation of each party to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)No Restraints. No temporary restraining order, preliminary or permanent injunction or other order preventing the consummation of the Share Exchange shall have been issued by any court of competent jurisdiction or any other Governmental Entity having jurisdiction and shall remain in effect, and there shall not be any applicable legal requirement enacted, adopted or deemed applicable to the Share Exchange that makes consummation of the Share Exchange illegal. 

 

(b)Governmental Approvals.  

 

(1)As to RDAR and Acquired Company. All authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on RDAR or Acquired Company shall have been obtained, made or occurred. 

 

(2)As to the Owner. All required approvals required by local rules and regulations, stock market rules and regulations and corporate governance requirements, including the issuance of any and all required communications with respect thereto, as well as all other authorizations, consents, orders, declarations or approvals of, or filings with, or terminations or expirations of waiting periods imposed by, any governmental entity having jurisdiction which the failure to obtain, make or occur would have a material adverse effect on the Owner shall have been obtained, made or occurred. 

 

(c)No Litigation. There shall not be pending or threatened any suit, action or proceeding before any court, Governmental Entity or authority (1) pertaining to the transactions contemplated by this Agreement or (2) seeking to prohibit or limit the ownership or operation by Acquired Company or RDAR, or to dispose of or hold separate any material portion of the business or assets of Acquired Company or RDAR. 

 

6.2Conditions Precedent to Obligations of RDAR. The obligation of RDAR to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement are subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of Acquired Company in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and Acquired Company shall have performed and complied in all material respects with all covenants, obligations and conditions of this Agreement required to be performed and complied with by each of them prior to the Effective Time. 

 

(b)Consents. RDAR shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of Acquired Company that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on Acquired Company. 

 

(d)Board Resolutions. RDAR shall have received resolutions duly adopted by Acquired Company’s board of directors approving the execution, delivery, and performance of the Agreement and the transactions contemplated by the Agreement. 

 

(e)Other Approvals. RDAR shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. RDAR shall be reasonably satisfied with the results of its due diligence investigation of Acquired Company in its sole and absolute discretion. 

 

6.3Conditions Precedent to Obligation of Acquired Company. The obligation of Acquired Company to effect the Share Exchange and otherwise consummate the transactions contemplated by this Agreement is subject to the satisfaction, at or prior to the Closing, of each of the following conditions: 

 

(a)Representations, Warranties and Covenants. The representations and warranties of RDAR in this Agreement shall be true and correct in all material respects (except for such representations and warranties that are qualified by their terms by a reference to materiality or material adverse effect, which representations and warranties as so qualified shall be true and correct in all respects) both when made and on and as of the Closing Date, and RDAR shall have performed and complied in all material respects with all covenants, obligations and  




conditions of this Agreement required to be performed and complied with by it prior to the Effective Time.

 

(b)Consents. Acquired Company shall have received evidence, in form and substance reasonably satisfactory to it, that such licenses, permits, consents, approvals, authorizations, qualifications and orders of governmental authorities and other third parties as necessary in connection with the transactions contemplated hereby have been obtained. 

 

(c)No Material Adverse Change. There shall not have occurred any change in the business, condition (financial or otherwise), results of operations or assets (including intangible assets) and properties of RDAR that, individually or in the aggregate, could reasonably be expected to have a material adverse effect on RDAR. 

 

(d)Board Resolutions. Acquired Company shall have received resolutions duly adopted by RDAR’s board of directors approving the execution, delivery and performance of the Agreement and the transactions contemplated by the Agreement. 

 

(e)Other Approvals. Acquired Company shall have received from the Owner written confirmation of its having obtained any and all approvals relating to this Agreement as may be required by the securities laws of the French Republic, including the rules and regulations promulgated thereunder. 

 

(f)Due Diligence Investigation. Acquired Company shall be reasonably satisfied with the results of its due diligence investigation of RDAR in its sole and absolute discretion. 

 

6.4Conditions Subsequent. 

 

(a)Regulation A Offering. Should RDAR fail to have filed an Offering Statement on Form 1-A pursuant to Regulation A of the Securities and Exchange Commission (the “Reg A Offering”), on or before the 20th day following the Closing, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 

 

(b)Regulation A Offering Proceeds. Should RDAR fail to have obtained the sum of $1,500,000 in proceeds from the Reg A Offering, on or before the date that is six (6) months from the date of the SEC’s qualification of the Reg A Offering, the Members shall have the right, but not the obligation, to rescind this Agreement by unanimous written notice to RDAR (the “Rescission Notice”). Upon RDAR’s receipt of the Rescission Notice, this Agreement shall, ipso facto, be rescinded and the Parties returned to their statuses quo ante. 

 

(c)Divestiture. Should RDAR fail to have divested of its current operations, which divestiture shall include all debts, other than the trade payables of RDAR listed on Exhibit D attached hereto and incorporated herein, of RDAR as of the Closing Date, on or before December 31, 2024, the Owner shall have the right, but not the obligation, to rescind this Agreement by written notice to RDAR. 

 

Article VII.

Closing

 

7.1RDAR shall make the following deliveries at the Closing. To consummate the transaction, RDAR shall, at the Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit E attached hereto; 

 

(b)Executed written consent of the Board of Directors or RDAR authorizing each of the Change-in-Control Agreement, including this Agreement, and the issuance of the Exchange Shares; 

 

(c)A fully executed Mexedia Ireland SPA; 

 

(d)A fully executed Redemption Agreement; and 

 

(e)The Exchange Shares, in the form of the Exchange Shares Certificate. 

 

7.2Acquired Company and the Owner shall make the following deliveries at the Closing. To consummate the transaction Acquired Company and the Owner shall, at Closing, make the following deliveries: 

 

(a)Executed Closing Certificate, in the form of Exhibit F attached hereto; 

 

(b)A fully executed Mexedia Ireland SPA; and 

 

(c)The Ownership Interest, duly assigned to RDAR. 

 

Article VIII.

Termination, Amendment and Waiver

 

8.1Termination. This Agreement may be terminated and abandoned at any time prior to the Effective Time of the Share Exchange: 




(a)by mutual written consent of RDAR and Acquired Company; 

 

(b)by either RDAR or Acquired Company if any Governmental Entity shall have issued an order, decree or ruling or taken any other action permanently enjoining, restraining or otherwise prohibiting the Share Exchange and such order, decree, ruling or other action shall have become final and non-appealable; 

 

(c)by either RDAR or Acquired Company if the Share Exchange shall not have been consummated on or before January 31, 2025 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed at or prior to the Effective Time). 

 

(d)by RDAR, if a material adverse change shall have occurred relative to Acquired Company (and not curable within 10 days); 

 

(e)by Acquired Company if a material adverse change shall have occurred relative to RDAR (and not curable within thirty 10 days); 

 

(f)by RDAR, if Acquired Company willfully fails to perform in any material respect any of its material obligations under this Agreement; or 

 

(g)by Acquired Company, if RDAR willfully fails to perform in any material respect any of its obligations under this Agreement. 

 

8.2Effect of Termination. In the event of termination of this Agreement by either Acquired Company or RDAR as provided in Section 8.1, this Agreement shall forthwith become void and have no effect, without any liability or obligation on the part of RDAR or Acquired Company, other than the provisions of this Section 8.2. Nothing contained in this Section 8.2 shall relieve any party for any breach of the representations, warranties, covenants or agreements set forth in this Agreement. 

 

8.3Amendment. This Agreement may not be amended except by an instrument in writing signed on behalf of each of the parties upon approval by the party, if such party is an individual, and upon approval of the Board of Director of RDAR and of Acquired Company. 

 

8.4Extension; Waiver. Subject to Section 8.1(c), at any time prior to the Effective Time, the parties may (a) extend the time for the performance of any of the obligations or other acts of the other parties, (b) waive any inaccuracies in the representations and warranties contained in this Agreement or in any document delivered pursuant to this Agreement, or (c) waive compliance with any of the agreements or conditions contained in this Agreement. Any agreement on the part of a party to any such extension or waiver shall be valid only if set forth in an instrument in writing signed on behalf of such party. The failure of any party to this Agreement to assert any of its rights under this Agreement or otherwise shall not constitute a waiver of such rights. 

 

8.5Return of Documents. In the event of termination of this Agreement for any reason, RDAR and Acquired Company will return to the other party all of the other party’s documents, work papers, and other materials (including copies) relating to the transactions contemplated in this Agreement, whether obtained before or after execution of this Agreement. RDAR and Acquired Company will not use any information so obtained from the other party for any purpose and will take all reasonable steps to have such other party’s information kept confidential. 

 

Article IX.

Indemnification and Related Matters

 

9.1Survival of Representations and Warranties. The representations and warranties in this Agreement or in any instrument delivered pursuant to this Agreement, including any disclosure schedule, shall survive until twelve (12) months after the Effective Time (except for with respect to Taxes, which shall survive for the applicable statute of limitations plus 90 days, and covenants that by their terms survive for a longer period). The right to any remedy based upon such representations and warranties shall not be affected by any investigation conducted with respect to, or any knowledge acquired at any time, whether before or after execution and delivery of this Agreement or the Closing Date, with respect to the accuracy or inaccuracy of any such representation or warranty. 

 

9.2Indemnification. 

 

(a)RDAR shall indemnify and hold Acquired Company and Acquired Company’s officers and directors (“Acquired Company Representatives”) harmless for, from and against any and all liabilities, obligations, damages, losses, deficiencies, costs, penalties, interest and expenses (including, but not limited to, any and all expenses whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened, or any claim whatsoever) (collectively, “Losses”) to which RDAR may become subject resulting from or arising out of any breach of a representation, warranty or covenant made by RDAR as set forth herein. 

 

(b)Acquired Company shall indemnify and hold RDAR and RDAR’s officers and directors (“RDAR’s Representatives”) harmless for, from and against any and all Losses to which RDAR or RDAR’s Representatives may become subject resulting from or arising out of (1) any breach of a representation, warranty or covenant made by Acquired Company as set forth herein; or (2) any and all liabilities arising out of or in connection with: (A) any of the assets of Acquired Company prior to the Closing; or (B) the operations of Acquired Company prior to the Closing. 

 

9.3Notice of Indemnification. Promptly after the receipt by any indemnified party (the “Indemnitee”) of notice of the  




commencement of any action or proceeding against such Indemnitee, such Indemnitee shall, if a claim with respect thereto is or may be made against any indemnifying party (the “Indemnifying Party”) pursuant to this Article IX, give such Indemnifying Party written notice of the commencement of such action or proceeding and give such Indemnifying Party a copy of such claim and/or process and all legal pleadings in connection therewith. The failure to give such notice shall not relieve any Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. Such Indemnifying Party shall have, upon request within thirty (30) days after receipt of such notice, but not in any event after the settlement or compromise of such claim, the right to defend, at its own expense and by its own counsel reasonably acceptable to the Indemnitee, any such matter involving the asserted liability of the Indemnitee; provided, however, that if the Indemnitee determines that there is a reasonable probability that a claim may materially and adversely affect it, other than solely as a result of money payments required to be reimbursed in full by such Indemnifying Party under this Article IX or if a conflict of interest exists between Indemnitee and the Indemnifying Party, the Indemnitee shall have the right to defend, compromise or settle such claim or suit; and, provided, further, that such settlement or compromise shall not, unless consented to in writing by such Indemnifying Party, which shall not be unreasonably withheld, be conclusive as to the liability of such Indemnifying Party to the Indemnitee. In any event, the Indemnitee, such Indemnifying Party and its counsel shall cooperate in the defense against, or compromise of, any such asserted liability, and in cases where the Indemnifying Party shall have assumed the defense, the Indemnitee shall have the right to participate in the defense of such asserted liability at the Indemnitee’s own expense. In the event that such Indemnifying Party shall decline to participate in or assume the defense of such action, prior to paying or settling any claim against which such Indemnifying Party is, or may be, obligated under this Article IX to indemnify an Indemnitee, the Indemnitee shall first supply such Indemnifying Party with a copy of a final court judgment or decree holding the Indemnitee liable on such claim or, failing such judgment or decree, the terms and conditions of the settlement or compromise of such claim. An Indemnitee’s failure to supply such final court judgment or decree or the terms and conditions of a settlement or compromise to such Indemnifying Party shall not relieve such Indemnifying Party of any of its indemnification obligations contained in this Article IX, except where, and solely to the extent that, such failure actually and materially prejudices the rights of such Indemnifying Party. If the Indemnifying Party is defending the claim as set forth above, the Indemnifying Party shall have the right to settle the claim only with the consent of the Indemnitee.

 

Article X.

General Provisions

 

10.1Notices. Any and all notices and other communications hereunder shall be in writing and shall be deemed duly given to the party to whom the same is so delivered, sent or mailed at addresses and contact information set forth below (or at such other address for a party as shall be specified by like notice.) Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall be deemed given and effective on the earliest of: (a) on the date of transmission, if such notice or communication is delivered via e-mail at the e-mail address set forth on the signature pages attached hereto prior to 5:30 p.m. (Eastern Time) on a business day, (b) on the next business day after the date of transmission, if such notice or communication is delivered via facsimile at the facsimile number set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (Eastern Time) on any business day, (c) on the second business day following the date of mailing, if sent by a nationally recognized overnight courier service, or (d) if by personal delivery, upon actual receipt by the party to whom such notice is required to be given. 

 

If to RDAR prior to Closing:7950 East Redfield Road, Unit 210 

Scottsdale, AZ 85260 

 

If to Acquired Company:1680 Michigan Avenue, Suite 700 

Miami Beach, Florida 33139 

 

If to the Owner:Via di Affogalasino, 105 - 00148 Roma RM 

 

10.2Definitions. For purposes of this Agreement: 

 

(a)an “affiliate” of any person means another person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such first person; 

 

(b)“material adverse change” or “material adverse effect” means, when used in connection with Acquired Company or RDAR, any change or effect that either individually or in the aggregate with all other such changes or effects is materially adverse to the business, assets, properties, condition (financial or otherwise) or results of operations of such party and its subsidiaries taken as a whole (after giving effect in the case of RDAR to the consummation of the Share Exchange); 

 

(c)“person” means an individual, corporation, partnership, joint venture, association, trust, unincorporated organization or other entity; and 

 

(d)a “subsidiary” of any person means another person, an amount of the voting securities, other voting ownership or voting partnership interests of which is sufficient to elect at least a majority of its board of Directors or other governing body (or, if there are no such voting interests, fifty percent (50%) or more of the equity interests of which) is owned directly or indirectly by such first person. 

 

10.3Interpretation. When a reference is made in this Agreement to a Section, Exhibit or Schedule, such reference shall be to a Section of, or an Exhibit or Schedule to, this Agreement unless otherwise indicated. The headings contained in this Agreement are for reference purposes only and shall not affect in any way the meaning or interpretation of this Agreement. Whenever the words “include”, “includes” or “including” are used in this Agreement, they shall be deemed to be followed by the words “without limitation.” 




10.4Entire Agreement; No Third-Party Beneficiaries. This Agreement and the other agreements referred to herein constitute the entire agreement, and supersede all prior agreements and understandings, both written and oral, among the parties with respect to the subject matter of this Agreement. This Agreement is not intended to confer upon any person other than the parties any rights or remedies. 

 

10.5Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Nevada, regardless of the laws that might otherwise govern under applicable principles of conflicts of laws thereof. 

 

10.6Assignment. Neither this Agreement nor any of the rights, interests or obligations under this Agreement shall be assigned, in whole or in part, by operation of law or otherwise by any of the parties without the prior written consent of the other parties. Subject to the preceding sentence, this Agreement will be binding upon, inure to the benefit of, and be enforceable by, the parties and their respective successors and assigns. 

 

10.7Enforcement. The parties agree that irreparable damage would occur in the event that any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly agreed that the parties shall be entitled to an injunction or injunctions to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this Agreement in any court of the United States located in the State of Nevada, this being in addition to any other remedy to which they are entitled at law or in equity. In addition, each of the parties hereto (a) agrees that it will not attempt to deny or defeat such personal jurisdiction or venue by motion or other request for leave from any such court, and (b) agrees that it will not bring any action relating to this Agreement or any of the transactions contemplated by this Agreement in any state court other than such court. 

 

10.8Severability. Whenever possible, each provision or portion of any provision of this Agreement will be interpreted in such manner as to be effective and valid under applicable law but if any provision or portion of any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability will not affect any other provision or portion of any provision in such jurisdiction, and this Agreement will be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision or portion of any provision had never been contained herein. 

 

10.9Counterparts. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together will constitute one and the same Agreement. This Agreement, to the extent delivered by means of a facsimile machine or electronic mail (any such delivery, an “ Electronic Delivery “), shall be treated in all manner and respects as an original agreement or instrument and shall be considered to have the same binding legal effect as if it were the original signed version thereof delivered in person. At the request of any party hereto, each other party hereto shall re-execute original forms hereof and deliver them in person to all other parties. No party hereto shall raise the use of Electronic Delivery to deliver a signature or the fact that any signature or agreement or instrument was transmitted or communicated through the use of Electronic Delivery as a defense to the formation of a contract, and each such party forever waives any such defense, except to the extent such defense related to lack of authenticity. 

 

10.10Attorneys’ Fees. In the event any suit or other legal proceeding is brought for the enforcement of any of the provisions of this Agreement, the parties hereto agree that the prevailing party or parties shall be entitled to recover from the other party or parties upon final judgment on the merits reasonable attorneys’ fees, including attorneys’ fees for any appeal, and costs incurred in bringing such suit or proceeding. 

 

IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Agreement as of the date first above written. 

 

RDAR:ACQUIRED COMPANY: 

 

RAADR, INC.MEXEDIA INC. 

 

EXEMPLAREXEMPLAR 

By: __________________________By: __________________________ 

Jacob DiMartinoOrlando Taddeo 

Chief Executive OfficerPresident 

E-Mail: jacob.d@raadr.comE-Mail: otaddeo@mexedia.com 

 

OWNER: 

 

MEXEDIA S.p.A. S.B. 

 

EXEMPLAR 

By: __________________________ 

Orlando Taddeo 

President 

E-Mail: otaddeo@mexedia.com 

 

 




EXHIBIT C

 

Form of Redemption Agreement

 

 

 

REDEMPTION AGREEMENT

 

This Agreement (the “Agreement”) is made as of September ___, 2024, by and between Raadr, Inc., a Nevada corporation (the “Issuer”), and JanBella Group, LLC, a stockholder of the Issuer (“Seller”). 

 

RECITALS

 

WHEREAS, Seller is the owner of 1,000,000 shares of the Issuer’s Series E Preferred Stock, par value $0.001 per share (“Subject Preferred Stock”); and

 

WHEREAS, Seller desires to sell to the Issuer, and the Issuer desires to re-purchase and redeem from Seller, the Subject Preferred Stock, which shall result in the re-purchase and redemption by the Issuer of the Subject Preferred Stock, on and subject to the terms of this Agreement.

 

NOW, THEREFORE, the parties hereto hereby agree as follows: 

 

1.Sale of the Shares. Subject to the terms and conditions of this Agreement, and in reliance upon the representations, warranties, covenants and agreements contained in this Agreement, Seller shall sell to the Issuer the Subject Preferred Stock, and the Issuer shall re-purchase and redeem the Subject Preferred Stock from Seller, for the purchase price set forth in Exhibit A attached hereto and incorporated herein by this reference (the “Purchase Price”). 

 

2.Right to Rescind. If the Acquisition Agreements (defined below) are rescinded in accordance with their respective terms or if the Issuer defaults on the Redemption Note (as defined in Exhibit A), then Seller shall have the right, but not the obligation, to rescind this Agreement by written notice to the Issuer. Should Seller so rescind this Agreement, the Issuer shall, without delay, re-issue the Subject Preferred Stock to Seller and Seller shall retain any and all amounts paid to Seller under the Redemption Note (as defined in Exhibit A) as liquidated damages. 

 

3.Condition Precedent. As a condition precedent to the Closing (defined below) of this Agreement, Seller and Mexedia S.p.A. S.B., as guarantor of the Note,  of the Note, shall have entered into a pledge agreement (the “Pledge Agreement”), in the form of Exhibit B attached hereto, and a guaranty (the “Guaranty”), in the form of Exhibit C attached hereto. The Pledge Agreement and the Guaranty are to become binding agreement upon the consummation of the Acquisition Agreements. 

 

4.Closing. 

 

(a)The purchase and sale of the Subject Preferred Stock shall take place at a closing (the “Closing”), to occur immediately following the effectiveness of the acquisition transactions (the “Acquisitions”) contemplated by those certain share exchange agreements, dated as of September ___, 2024, by and between (1) the Issuer, Mexedia, Inc. and its shareholder and (2) the Issuer, Mexedia DAC an its shareholder (collectively, the “Acquisition Agreements”). The parties hereto shall have no obligation to complete the Closing in the event all of the Acquisition Agreements are not consummated contemporaneously. 

 

(b)At the Closing: 

 

(1)Seller shall deliver to the Issuer book-entry statements representing the shares of Subject Preferred Stock, duly endorsed in form for transfer to the Issuer. 

 

(2)The Issuer shall have delivered a fully executed Pledge Agreement and a fully executed Guaranty. 

 

(3)The Issuer shall pay to Seller the Purchase Price, as set forth in Exhibit A

 

(4)At, and at any time after, the Closing, Seller shall duly execute, acknowledge and deliver all such further assignments, conveyances, instruments and documents, and shall take such other action consistent with the terms of this Agreement to carry out the transactions contemplated by this Agreement, as may be requested by the Issuer. 

 

5.Representations and Warranties.  

 

(a)Of Seller. Seller makes the following representations and warranties to the Issuer with respect to Seller and the Subject Preferred Stock to be sold by Seller hereunder: 

 

(1)Seller is domiciled in the United States of America. 




(2)Seller is an “accredited investor” as such term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act of 1933, as amended (the “Securities Act”). 

 

(3)Seller has the requisite power and authority to enter into this Agreement and to consummate the transactions contemplated hereby and otherwise to carry out its obligations hereunder. 

 

(4)Seller owns the Subject Preferred Stock free and clear of any and all options, liens, claims, encumbrances, security interests, pledges, preemptive rights, rights of first refusal and adverse interests of any kind. Seller agrees that the consideration payable by the Issuer for the re-purchase and redemption of the Subject Preferred Stock is fair and reasonable and that Seller is in the best position to evaluate and determine the fair value of the Subject Preferred Stock. There are no restrictions on the transfer or redemption of the Subject Preferred Stock (other than restrictions under the Securities Act or state securities laws). No person or entity has any right to purchase the Subject Preferred Stock or any portion thereof or interest therein. 

 

(5)Seller has received and reviewed the Acquisition Agreements and understands and consents to the transactions contemplated thereby. Seller has been afforded the opportunity during the course of negotiating the transactions contemplated by this Agreement to ask questions of, and to secure such information from, the Issuer and its officers and directors with regard to each of the Issuer and Mexedia S.p.A. S.B., the owner of Mexedia, Inc. and Mexedia DAC, as it deems necessary to evaluate the merits of consenting to the Issuer’s consummating such transactions, it being understood that Seller is the controlling stockholder of the Issuer and, as such, is intimately familiar with the Issuer and its business, operations, assets, liabilities, prospects and financial condition in all respects. All such questions, if asked, were answered satisfactorily and all information or documents provided were found to be satisfactory. 

 

(6)There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to Seller’s knowledge, threatened against Seller or any of its properties. There is no judgment, decree or order against Seller that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. 

 

(7)No bankruptcy, receivership or debtor relief proceedings are pending or, to Seller’s knowledge, threatened against Seller. 

 

(8)All representations, covenants and warranties of Seller contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though the same had been made on and as of such date. 

 

(b)Of the Issuer. The Issuer makes the following representations and warranties to Seller: 

 

(1)The Board of Directors has authorized the Issuer’s entering into this Agreement and consummating the transactions contemplated hereby and otherwise to carry out its obligations hereunder. 

 

(2)The Issuer is in good standing in the State of Nevada and in every other jurisdiction in which it engages in business. 

 

(3)There is no private or governmental action, suit, proceeding, claim, arbitration or investigation pending before any agency, court or tribunal, foreign or domestic, or, to the Issuer’s knowledge, threatened against the Issuer or any of its properties. There is no judgment, decree or order against the Issuer that could prevent, enjoin, alter or delay any of the transactions contemplated by this Agreement. 

 

(4)No bankruptcy, receivership or debtor relief proceedings are pending or, to the Issuer’s knowledge, threatened against the Issuer. 

 

(5)All representations, covenants and warranties of the Issuer contained in this Agreement shall be true and correct on and as of the Closing Date with the same effect as though the same had been made on and as of such date. 

 

6.Termination by Mutual Agreement. This Agreement may be terminated at any time by mutual consent of the parties hereto, provided that such consent to terminate is in writing and is signed by each of the parties hereto. 

 

7.Release. Seller, on its own behalf and, to the extent of its legal authority, on behalf of its successors, assigns, heirs, next-of-kin, representatives, administrators, executors, partners, agents and affiliates, and any other person claiming by, through or under any of the foregoing (individually, a “Releasing Party”, and, collectively, “Releasing Parties”), hereby unconditionally and irrevocably releases, waives and forever discharges, effective as of the Closing hereunder, the Issuer, Phone Match, LLC, including its members, Mexedia, Inc., including its shareholder, and Mexedia DAC, including its shareholder, and each of their past and present respective officers, directors, employees, stockholders, predecessors, successors, assigns, partners, subsidiaries and affiliates (individually, a “Released Party”, and, collectively, “Released Parties”) from any and all claims, obligations, contracts, agreements, rights, debts, covenants and liabilities (including attorneys’ fees and costs) of any nature whatsoever, whether fixed or contingent, known or unknown, suspected or claimed to exist or unsuspected, regardless of whether knowledge of the unknown or unsuspected claim would have materially affected Seller’s decision to enter into this Agreement, both at law and in equity, arising directly or indirectly from any act, omission, event, or transaction occurring (or any facts or circumstances existing) on or prior to the Closing hereunder, but excluding claims for breach by the Issuer of any provision of this Agreement. 




8.Miscellaneous. 

 

(a)Entire Agreement. This Agreement constitutes the entire agreement of the parties, superseding and terminating any and all prior or contemporaneous oral and written agreements, understandings or letters of intent between or among the parties, with respect to the subject matter of this Agreement. No part of this Agreement may be modified or amended, nor may any right be waived, except by a written instrument which expressly refers to this Agreement, states that it is a modification or amendment of this Agreement and is signed by the parties to this Agreement, or, in the case of waiver, by the party granting the waiver. No course of conduct or dealing or trade usage or custom and no course of performance shall be relied on or referred to by any party to contradict, explain or supplement any provision of this Agreement, it being acknowledged by the parties to this Agreement that this Agreement is intended to be, and is, the complete and exclusive statement of the agreement with respect to its subject matter. Any waiver shall be limited to the express terms thereof and shall not be construed as a waiver of any other provisions or the same provisions at any other time or under any other circumstances. 

 

(b)Severability. If any section, term or provision of this Agreement shall to any extent be held or determined to be invalid or unenforceable, the remaining sections, terms and provisions shall nevertheless continue in full force and effect. 

 

(c)Notices. All notices provided for in this Agreement shall be in writing signed by the party giving such notice, and delivered personally or sent by overnight courier, mail or messenger against receipt thereof or sent by registered or certified mail, return receipt requested, or by facsimile transmission or similar means of communication if receipt is confirmed or if transmission of such notice is confirmed by mail as provided in this Section 6(c). Notices shall be deemed to have been received on the date of personal delivery or e-email or attempted delivery. Notice shall be delivered to the parties at the following addresses: 

 

If to the Issuer:7950 East Redfield Road, Unit 210, Scottsdale, Arizona 85260. 

 

If to Seller:20311 Chartwell Center Drive, Suite 1469, Cornelius, North Carolina 28031. 

 

Either party may, by like notice, change the address, person or telecopier number to which notice shall be sent. 

 

(d)Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Agreement shall be brought only in the state courts of North Carolina or in the federal courts located in the state and City of Charlotte, North Carolina. The parties to this Agreement hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Issuer and the Seller waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Agreement or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Agreement, any agreement or any other document delivered in connection with this Agreement by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

(e)Successors. This Agreement shall be binding upon the parties and their respective heirs, executors, administrators, legal representatives, successors and assigns; provided, however, that neither party may assign this Agreement or any of its rights under this Agreement without the prior written consent of the other party. 

 

(f)Further Assurances. Each party to this Agreement agrees, without cost or expense to any other party, to deliver or cause to be delivered such other documents and instruments as may be reasonably requested by any other party to this Agreement in order to carry out more fully the provisions of, and to consummate the transaction contemplated by, this Agreement. 

 

(g)Counterparts. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but all of which together shall constitute one and the same instrument. This Agreement and any documents relating to it may be executed and transmitted to any other party by facsimile or email of a PDF, which facsimile or PDF shall be deemed to be, and utilized in all respects as, an original, wet-inked document. 

 

(h)No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties with the advice of counsel to express their mutual intent, and no rules of strict construction will be applied against any party. 

 

(i)Headings. The headings in the Sections of this Agreement are inserted for convenience only and shall not constitute a part of this Agreement. 

 

[ SIGNATURE PAGE FOLLOWS ]




IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the date first above written. 

 

ISSUER:SELLER: 

 

RAADR, INC.JANBELLA GROUP, LLC 

 

 

EXEMPLAREXEMPLAR 

By: _______________________By: _______________________ 

Jacob DiMartinoWilliam Alessi 

Chief Executive Officer 

Managing Member 

 

 

 

EXHIBIT A

 

Purchase Price of Subject Preferred Stock

 

Due to the difficulty in establishing a value for the businesses to be acquired by the Issuer in the Acquisitions, the Issuer and Seller have agreed to a minimum Purchase Price of $540,000.00 (the “Minimum Price”) and a maximum Purchase Price of $1,800,000.00 (the “Maximum Price”) for the Subject Preferred Stock. The Purchase Price shall be paid by the Issuer’s delivery of a secured promissory note (the  “Redemption Note”), in the form of Annex I attached to this Exhibit A. 

 

 

 

ANNEX I

 

Form of Redemption Note

 

 

 

NEITHER THE ISSUANCE NOR THE SALE OF THE SECURITIES REPRESENTED HEREBY HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

 

SECURED PROMISSORY NOTE

 

Principal Amount: $540,000.00Issue Date: September ___, 2024 

 

Raadr, Inc., a Nevada corporation (“Maker”), promises to pay to JanBella Group, LLC (“Holder”) the principal sum of Five Hundred Forty Thousand Dollars ($540,000.00) (the “Principal Balance”), together with interest accrued thereon calculated at the rate of eight percent (8%) per annum (the “Interest”), all as set forth herein (the “Note”).  

 

The Principal Balance and accrued Interest shall be due and payable, as follows: 

 

(A)within three (3) business days from the end of each calendar month during which Maker shall have received proceeds (each a “Monthly Reg A Tranche”) under Maker’s next-filed Offering Statement on Form 1-A (the “Regulation A Offering”), Maker shall pay Holder an amount that equals forty percent (40%) of each Monthly Reg A Tranche amount that exceeds $100,000, with each such payment being applied first to accrued Interest and then to the Principal Balance of this Note, until such time as all accrued Interest and the Principal Balance shall have been paid in full; and 

 

(B)in any event, on or before September __, 2025 (the “Maturity Date”). 

 

Following the date of payment in full of the Principal Balance and all accrued Interest thereon (the “Balance Date”), Maker further promises to pay to Holder up to an additional $1,260,000 as additional principal (the “Additional Principal”). In this regard, within three (3) business days from Maker’s receipt of a Monthly Reg A Tranche after the Balance Date, Maker shall pay Holder an amount that equals ten percent (10%) of each Monthly Reg A Tranche amount that exceeds $100,000, until such time as all of the Additional Principal has been paid. Further, and in addition to the provisions of the foregoing sentence, for a period of 18 months immediately following the Issue Date, within three (3) business days from Maker's receipt of any third-party funding (the "Sourced Funding"), whether in the from of debt and/or equity, Maker shall pay Holder an amount that equals ten percent (10%) of the Sourced Funding amount, until such time as all of the Additional Principal has been paid. Maker shall incur no penalty for its failing to pay the Addition Principal amount in full. 

 

Upon a default by Maker hereunder, the then-outstanding Principal Balance shall thereafter bear interest thereon at eighteen percent (18%) per annum (the “Default Rate”) until the past due amount, including interest at the Default Rate, shall have been paid in full. 

 

In the event any payment called for by this Note would result in the violation of applicable usury laws, then any amount paid in excess of the maximum amount on interest allowed by law shall be applied towards a reduction of the outstanding principal balance. 

 

The obligations of this Note are secured by (a) that certain Pledge Agreement dated as of the Issue Date among Holder, as lender, and Heritage Ventures Ltd., Gianluca Benedetti and Adama GmbH, as guarantors, and (b) that certain Guaranty dated as of the Issue Date among Holder, as lender, and Heritage Ventures Ltd., Gianluca Benedetti and Adama GmbH, as guarantors. 




The occurrence of any one or more of the following events shall constitute a default under this Note: 

 

(a)failure of Maker to file the Regulation A Offering within twenty (20) days from the Issue Date of this Note; 

(b)failure of Maker to make any payment when due under this Note, with a grace period of two (2) business days; 

 

(c)the filing of any petition under federal bankruptcy law or any similar federal or state statute by or against Maker; 

 

(d)an application for the appointment of a receiver for, the making of a general assignment for the benefit of creditors by, or the insolvency of Maker; 

 

(e)the validity or enforceability of this Note is contested by Maker; or  

 

(f)Maker denies that it has any or any further liability or obligation hereunder. 

 

This Note is and shall be deemed to have been made and delivered in the State of North Carolina and in all respects shall be governed and construed in accordance with the laws of that State. 

 

This Note shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Note shall be brought only in the state courts of North Carolina or in the federal courts located in the City of Charlotte, State of North Carolina. The parties to this Note hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. The Borrower and Holder waive trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Note or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Note, any agreement or any other document delivered in connection with this Note by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Note and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

The word “Maker” shall include Maker’s representatives, successors and assigns and the word “Holder” shall include Holder’s representatives, successors and assigns. 

 

Maker and all endorsers of this Note hereby waive presentment for payment, demand for payment, notice of non-payment and dishonor, protest, and notice of protest; consent to any renewals, extensions and partial payments of this Note or the indebtedness for which it is given without notice to them, and consent that no such renewals, extensions or partial payments shall discharge any party hereto from liability hereon in whole or in part.  

 

If this Note shall be placed with an attorney for collection, Maker, endorsers and guarantors agree to pay all costs of collection, including reasonable attorneys’ fees which shall be added to the amount due under this Note and shall be recoverable with the amount due under this Note and shall be a lien on any collateral securing this Note. 

 

Maker acknowledges and agrees that sufficient consideration has passed to render this Note valid and enforceable and waives any claim based on inadequate consideration. 

 

IN WITNESS WHEREOF, Maker has executed this Note as of the date first above set forth.  

 

RAADR, INC. 

 

EXEMPLAR 

By: ___________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

EXHIBIT B

 

Form of Pledge Agreement

 

 

 

PLEDGE AGREEMENT

 

This Pledge Agreement (the “Agreement”) is made and entered as of September ___, 2024, by and among Mexedia S.p.A. S.B. (“Guarantor”), JanBella Group, LLC, a North Carolina limited liability company (“Lender”), and the undersigned holder of the pledged shares (“Pledge Holder”). 

 

RECITALS

 

Raadr, Inc., a Nevada corporation (the “Company”), issued a Secured Promissory Note, dated as of the date of this Agreement (the “Redemption Note”) to Lender, whereby the Company owes payment obligations to Lender.

 

Guarantor has agreed to secure the Company’s payment obligations to Lender under the Redemption Note with a guaranty and a pledge of, and thereby create a security interest in favor of Lender in, a total of 75,000 shares of Series F Preferred Stock of the Company (the “Shares”), the Shares representing 100% of the issued and outstanding shares of Series F Preferred Stock of the Company.




AGREEMENT

 

1.Security Interest. Guarantor hereby grants to Lender a security interest in (a) the Shares, (b) all Dividends (as defined below), and (c) all Additional Securities (as defined below); to secure payment of the Redemption Note and performance of all Guarantor’s obligations under this Agreement. For purposes of this Agreement, the Shares, all Dividends and all Additional Securities will be collectively referred to as the “Collateral”. If any stock dividend, reclassification, readjustment, stock split or other change is declared or made with respect to the Collateral, or if warrants or any other rights, options or securities are issued in respect of the Collateral (“Additional Securities”), then all new, substituted and/or additional shares or other securities issued by reason of such change or by reason of the exercise of such warrants, rights, options or securities, will be (if delivered to Guarantor, immediately surrendered to Lender care of the Pledge Holder and) pledged to Lender to be held under the terms of this Agreement as and in the same manner as the Collateral is held hereunder. 

 

2.Appointment of the Pledge Holder. Guarantor and Lender hereby designate and appoint the Pledge Holder as such for the purposes hereinafter set forth. Guarantor hereby deposits with the Pledge Holder (a) the Shares, as are represented by the book entry statement in the name of Guarantor, (b) the original Stock Power, copies of which are attached hereto as Exhibit A, and (c) documentation waiving the Medallion Signature Guaranty requirement signed by the Company and Manhattan Transfer Registrar Co., in form satisfactory to Lender. 

 

3.Rights and Obligations of the Pledge Holder.  

 

(a)Guarantor and Lender hereby authorize the Pledge Holder to keep and preserve the Shares in its possession pending payment in full of the Redemption Note. If a default occurs under the terms of this Agreement or the Redemption Note, then Lender shall provide written notice to Guarantor and the Company specifying the default and shall, subject to Section 3(b) hereof, have the right to direct the Pledge Holder to transfer the Shares to the Lender or its designee if Guarantor and/or the Company has not cured the default within 15 days after receipt of the notice. In such event, the Pledge Holder, acting as agent of Lender, shall, with respect to the Shares, exercise the rights and duties of a Secured Party under the Uniform Commercial Code as enacted in Nevada (the “UCC”), and under any other applicable law as the same may, from time to time, be in effect. Guarantor agrees that any notice by Pledge Holder concerning the sale, disposition or other intended action in connection with the Shares, whether required by the UCC, or otherwise shall constitute reasonable notice to Guarantor if such notice is mailed by registered mail or certified mail, return receipt requested, postage prepaid at least ten days prior to such action. 

 

(b)Notwithstanding anything contained herein to the contrary, in no event shall the Lender, or any affiliate of the Lender, be entitled to exercise incidents of ownership over, own, or convert any portion of the Shares in excess of that portion of Shares that upon conversion of which the sum of: (1) the number of shares of common stock of the Company (the “Common Stock”) beneficially owned by the Lender and its affiliates (other than shares of Common Stock which may be deemed beneficially owned through the ownership of the unconverted portion of any securities of the Company or the unexercised or unconverted portion of any other security of the Company subject to a limitation on conversion or exercise analogous to the limitations contained herein) and (2) the number of shares of Common Stock issuable upon the conversion of the portion of the Shares with respect to which the determination of this proviso is being made, would result in beneficial ownership by the Lender and its affiliates of more than 9.99% of the outstanding shares of Common Stock. For purposes of the proviso to the immediately preceding sentence, beneficial ownership shall be determined in accordance with Section 13(d) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Regulations 13D-G thereunder, except as otherwise provided in clause (1) of such proviso, provided, however, that the limitations set forth in this Section 3(b) may be waived by the Lender only upon, at the election of the Lender, not less than 61 days’ prior notice to the Company and the Pledge Holder, and the provisions of the conversion limitation shall continue to apply until such 61st day (or such later date, as determined by the Lender, as may be specified in such notice of waiver). 

 

4.Disposition of Shares. Upon any disposition of the Shares by Pledge Holder in accordance with the terms of Section 3 (Rights and Obligations of the Pledge Holder), Lender shall be entitled to all of the proceeds of any such disposition. 

 

5.Rights of Beneficial Ownership. Upon an event of default under the Redemption Note, and subject to Section 3(b), Lender shall be deemed the beneficial owner of the Shares and shall have all rights and benefits incident thereto. Lender and Guarantors, and each of them, agree to execute any necessary proxies or other documents to effectuate this right. So long as Guarantor owns the Shares and no event of default has occurred under the Redemption Note, Guarantor shall be entitled to vote any shares comprising the Collateral, subject to any proxies granted by Guarantor. 

 

6.Covenants of Guarantor. Guarantor hereby represents and warrants to Lender that Guarantor has good title (both record and beneficial) to the Collateral, free and clear of all claims, pledges, security interests, liens or encumbrances of every nature whatsoever, and that Guarantor has the right to pledge and grant Lender the security interest in the Collateral granted under this Agreement. Guarantor agrees that, until all sums due under the Redemption Note have been paid in full, Guarantor will not: (a) sell, assign or transfer, or attempt to sell, assign or transfer, any of the Collateral, (b) grant or create, or attempt to grant or create, any security interest, lien, pledge, claim or other encumbrance with respect to any of the Collateral, (c) suffer or permit to continue upon any of the Collateral during the term of this Agreement, an attachment, levy, execution or statutory lien, (d) permit the issuance of any equity of the Company or any other security of the Company which diminishes the value, or rights and preferences of the Shares or otherwise make any change to its capitalization; or (e) amend the rights and preferences of the Shares.  

 

There shall be no substitution of collateral under the terms of this Agreement, without the prior written consent of Lender. 

 

Guarantor hereby agrees to indemnify Lender and Pledge Holder against any direct loss, reasonable cost or out-of-pocket expense incurred by holder in connection with the Redemption Note and Agreement and the exercise of any and all rights pertaining thereto, including, without limitation, all court costs, reasonable attorney’s fees and other costs of collection. 

 

7.Disputes. In the event of a dispute with respect to the terms and provisions of this Agreement, Pledge Holder shall not be required to resolve that dispute or take any action with respect thereto. Pledge Holder may continue to hold the Shares and await final resolution of the dispute by joint written instructions from Guarantor and Lender or by a final determination of a court or arbitration panel of competent jurisdiction. In the alternative, Pledge Holder may deliver the Shares to a court of proper jurisdiction under an appropriate action in interpleader and thereupon be relieved of all responsibility under this Agreement. 

 

8.Release of Shares. When satisfactory proof has been presented to Pledge Holder that all amounts due under the Redemption Note (including accrued interest thereon) have been paid, Pledge Holder shall deliver the Shares with stock power attached to Guarantor and all obligations by and among Guarantor, Lender and Pledge Holder under this Agreement shall thereupon cease. 

 

9.Conduct of Pledge Holder. Pledge Holder shall not be required to exercise any standard of care greater than ordinary care in discharging its duties and obligations under this Agreement and Pledge Holder shall not incur any liability to anyone for any damages, losses or expenses with respect to any action taken or omitted in good faith. Pledge Holder shall have no duties other than those expressly imposed herein. Pledge Holder may rely and shall be protected in relying upon any paper or other document that may be submitted to it in connection with its duties hereunder and that it believes to be genuine and to have been signed or presented by the proper party or parties and shall have no liability or responsibility with respect to the form, execution or validity thereof. Pledge Holder may resign as  




such following the giving of 30 days prior written notice to the other parties hereto. Similarly, Pledge Holder may be removed and replaced following the giving of 30-days’ prior written notice to Pledge Holder by the other parties hereto. In either event, the duties of Pledge Holder shall terminate 30 days after receipt of such notice (or as of such earlier date as may be mutually agreeable), and Pledge Holder shall then deliver the Shares and any other related materials then in its possession to a successor pledge holder as shall be appointed by the other parties hereto as evidenced by a written notice filed with Pledge Holder. If the other parties hereto have failed to appoint a successor prior to the expiration of 30 days following receipt of the notice of resignation or removal, Pledge Holder may appoint a successor or petition any court of competent jurisdiction for the appointment of a successor pledge holder or for other appropriate relief, and any such resulting appointment shall be binding upon all of the parties hereto.

 

10.Notices. All notices, demands, requests, consents, approvals, and other communications required or permitted hereunder shall be in writing and, unless otherwise specified herein, shall be (a) personally served, (b) deposited in the mail, registered or certified, return receipt requested, postage prepaid, (c) delivered by reputable air courier service with charges prepaid, or (d) transmitted by hand delivery, telegram, e-mail or facsimile, addressed as set forth below or to such other address as such party shall have specified most recently by written notice. Any notice or other communication required or permitted to be given hereunder shall be deemed effective (1) upon hand delivery or delivery by e-mail or facsimile, with accurate confirmation generated by the transmitting facsimile machine, at the address or number designated below (if delivered on a business day during normal business hours where such notice is to be received), or the first business day following such delivery (if delivered other than on a business day during normal business hours where such notice is to be received) or (2) on the second business day following the date of mailing by express courier service, fully prepaid, addressed to such address, or upon actual receipt of such mailing, whichever shall first occur. The addresses for such communications shall be: 

 

If to Lender:JanBella Group, LLC, Attention: William Alessi 

20311 Chartwell Center Drive, Suite 1469, Cornelius, NC 28031 

E-mail: balessi@alphamodus.com 

 

If to Guarantor:Attention: Orlando Taddeo 

Via di Affogalasino, 105  -  00148 Roma RM 

 

E-mail: otaddeo@mexedia.com 

 

If to Pledge Holder:Newlan Law Firm, PLLC, Attention: Eric Newlan 

2201 Long Prairie Road, Suite 107-762, Flower Mound, Texas 75022 

E-mail: eric@newlanpllc.com 

 

11.Wavier. No delay or omission by Lender in exercising any right or remedy hereunder shall operate as a waiver thereof or of any right or remedy, and no single or partial exercise thereof shall preclude any other or further exercise thereof or the exercise of any other right or remedy. All rights and remedies of Lender hereunder are cumulative. 

 

12.General. No modification, rescission, waiver, release or amendment of any provision of this Agreement shall be made except by written agreement subscribed by Guarantor and Lender. An executed original of any such agreement shall be delivered to the Pledge Holder upon its execution and if such agreement affects the right, duties or obligations of the Pledge Holder under this Agreement, it must also be executed and agreed to by the Pledge Holder before the same shall have any legal effect. This Agreement shall be governed under the laws of the State of North Carolina without regard to conflict of law principles; and any action with respect to this Agreement shall be bought in the State of North Carolina, County of Mecklenburg. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Except as required by law, each party to this Agreement shall keep this Agreement, the Redemption Note and the transactions contemplated by these agreements strictly confidential. 

 

IN WITNESS WHEREOF, the parties have executed and delivered this Pledge Agreement on the date first set forth above. 

 

GUARANTOR:

 

MEXEDIA S.p.A. S.B.

 

EXEMPLAR 

By: __________________________

Orlando Taddeo 

President 

 

LENDER:

 

JANBELLA GROUP, LLC

 

EXEMPLAR 

By: ________________________

William Alessi

Managing Member

 

PLEDGE HOLDER:

 

NEWLAN LAW FIRM, PLLC

 

EXEMPLAR 

By:  _________________________

Eric Newlan

Managing Member

 

ACKNOWLEDGED AND AGREED BY THE COMPANY:

 

RAADR, INC.

 

EXEMPLAR 

By: ______________________________

Jacob DiMartino 

Chief Executive Officer 




EXHIBIT C

 

Form of Guaranty

 

 

 

GUARANTY

 

This Guaranty, dated as of September ___, 2024, is made by and between Mexedia S.p.A. S.B. (“Guarantor”), and JanBella Group, LLC, a North Carolina limited liability company (“Lender”). 

 

RECITALS

 

On September ___, 2024, Raadr, Inc., a Nevada corporation (“Borrower”), issued a Secured Promissory Note (the “Redemption Note”) in the principal amount of $540,000.00. A material element of the Redemption Note is, among others, the delivery of a pledge agreement (the “Pledge Agreement”) dated the date hereof by and among Guarantor, Borrower and Lender, whereby Guarantor pledged a total of 75,000 shares of Series F Preferred Stock of the Company (the “Pledged Securities”), to secure the performance when due of all obligations of Borrower pursuant to the Note and this Guaranty.

 

NOW, THEREFORE, in consideration of the premises and in order to induce Lender to consummate the transactions contemplated by the Agreement, Guarantor hereby agrees as follows: 

 

1.Guaranty. Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all obligations of Borrower under the Note (the “Obligations”).  

 

2.Guaranty Absolute. Guarantors, and each of them, guarantee that the Obligations will be performed strictly in accordance with their terms, regardless of any law, regulation or order now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of Lender with respect thereto; and if such Obligations are not performed accordingly, Guarantor hereby unconditionally and irrevocably guarantees the full and prompt performance when due of all Obligations (including, but not limited to, payment). The liability of Guarantor is primary, direct and independent of the obligations of Borrower pursuant to the Note. This Guaranty shall be enforceable against Guarantor in the same manner as if Guarantor were the primary obligor. The liability of Guarantor under this Guaranty shall be absolute and unconditional irrespective of: 

 

(a)any change in the time, manner or place of payment of, or in any other term of, all or any of the Obligations, or any other amendment or waiver of or any consent to departure thereof; 

 

(b)any defense which Guarantor may assert including, but not limited to, failure of consideration, breach of warranty, fraud, payment, statute of frauds, bankruptcy, lack of legal capacity, statute of limitations, lender liability, accord and satisfaction and usury; or 

 

(c)any other circumstance which might otherwise constitute a defense available to, or a discharge  

of, Guarantor.

 

None of the foregoing waivers shall prejudice Lender’s rights under the Note. This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of any of the Obligations is rescinded or must otherwise be returned by Lender upon the insolvency, bankruptcy or reorganization of Borrower or otherwise, all as though such payment had not been made. 

 

Notwithstanding any of the foregoing provisions of this Section 2 to the contrary, should Guarantor deliver the Pledged Securities to Lender in accordance with the terms of the Pledge Agreement upon Borrower’s failure to fully and promptly perform its Obligations under the Note, then Guarantor’s guaranty hereunder shall be deemed to be fully satisfied and Guarantor shall have no further liability to Lender hereunder. 

 

3.Matters Being Waived. Guarantor hereby waives promptness, diligence, notice of acceptance, and any other notice with respect to any of the obligations of the Note and this Guaranty and any requirement that Lender exhausts any right or take any action against Borrower or any other person or entity or any collateral. 

 

4.Governing Law. This Guaranty shall be governed by and construed in accordance with the laws of the State of North Carolina without regard to principles of conflicts of laws. Any action brought by either party against the other concerning the transactions contemplated by this Guaranty shall be brought only in the state courts of North Carolina or in the federal courts located in the state and City of Charlotte, North Carolina. The parties to this Guaranty hereby irrevocably waive any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on lack of jurisdiction or venue or based upon forum non conveniens. Guarantor waives trial by jury. The prevailing party shall be entitled to recover from the other party its reasonable attorney’s fees and costs. In the event that any provision of this Guaranty or any other agreement delivered in connection herewith is invalid or unenforceable under any applicable statute or rule of law, then such provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not affect the validity or enforceability of any other provision of any agreement. Each party hereby irrevocably waives personal service of process and consents to process being served in any suit, action or proceeding in connection with this Guaranty, any agreement or any other document delivered in connection with this Guaranty by mailing a copy thereof via registered or certified mail or overnight delivery (with evidence of delivery) to such party at the address in effect for notices to it under this Guaranty and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any other manner permitted by law. 

 

5.Miscellaneous Provisions.  

 

(a)Amendments. No amendment or waiver of any provision of this Guaranty nor consent to any departure by Guarantors therefrom shall in any event be effective unless the same shall be in writing and signed by Lender and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given. 

 

(b)No Waiver; Remedies. No failure on the part of Lender to exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right hereunder preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 




(c)Headings. The headings herein are for convenience only and shall not limit or define the meaning of the provisions of this Guaranty. 

 

(d)Severability. If any provision of this Guaranty for any reason shall be held to be illegal,  

invalid or unenforceable, such illegality shall not affect any other provision of this Guaranty, this Guaranty shall be amended so as to enforce the illegal, invalid or unenforceable provision to the maximum extent permitted by applicable law, and the parties shall cooperate in good faith to further modify this Guaranty so as to preserve to the maximum extent possible the intended benefits to be received by the parties.

 

(e)Continuing Guaranty. This Guaranty is a continuing guaranty and shall (1) remain in full force and effect until payment in full of the obligations of the Note and all other amounts payable under this Guaranty, (2) be binding upon Guarantors, and each of them, their respective successors and respective assigns, and (3) inure to the benefit of and be enforceable by Lender and its successors, transferees and assigns. 

 

IN WITNESS WHEREOF, Guarantors have duly executed, or caused to be duly executed, and delivered this Guaranty as of the date first above written. 

 

 

GUARANTOR: 

 

MEXEDIA S.p.A. S.B. 

 

EXEMPLAR 

By: __________________________ 

Orlando Taddeo 

President 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT D

 

Trade Payables of RDAR

 

 

 

To remain RDAR obligations:

Michael Handelman (CPA)$6,000.00 

Manhattan Transfer Registrar Co.$6,005.00 

 

To be assigned by RDAR to new subsidiary post-closing:

Cooperative Computing (App developer)$30,000.00 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




EXHIBIT E

 

Form of Closing Certificate of RDAR

 

 

 

CERTIFICATE OF THE COMPANY

[Pursuant to Section 7.1(a) of the Share Exchange Agreement]

 

The undersigned, Jacob DiMartino, the duly elected and acting Chief Executive Officer of Raadr, Inc., a Nevada corporation (the “Company”), hereby certifies and affirms that each of the following is true and correct: 

 

1.The representations and warranties of the Company contained in that certain Share Exchange Agreement (the “Exchange Agreement”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date. 

 

2.The Company is a corporation duly organized and existing under the laws of the State of Nevada, and has the power and authority to own its properties and carry on its business in the manner in which such business is conducted. 

 

3.The execution, delivery and performance by the Company of the Exchange Agreement, in accordance with the terms and provisions of the Exchange Agreement, have been duly authorized by appropriate corporate action of the Company. 

 

4.The Company has full power, right and authority to enter into the Exchange Agreement and to perform their respective obligations under the Exchange Agreement, and the Exchange Agreement is the legal, valid and binding obligation of the Company and is enforceable against the Company in accordance with its terms. 

 

5.The Exchange Shares of the Company to be issued pursuant to the Exchange Agreement will be, upon issuance and delivery pursuant to the terms of the Exchange Agreement, validly issued, fully paid and non-assessable. 

 

Certified and affirmed this ____ day of September, 2024. 

 

RAADR, INC. 

 

EXEMPLAR 

By: __________________________ 

Jacob DiMartino 

Chief Executive Officer 

 

 

 

 




EXHIBIT F

 

Form of Closing Certificate of Acquired Company and the Owner

 

 

 

CERTIFICATE OF ACQUIRED COMPANY AND THE Owner

[Pursuant to Section 7.2(a) of the Share Exchange Agreement]

 

The undersigned hereby certify and affirm that each of the following is true and correct: 

 

1.The representations and warranties of Mexedia DAC, a Republic of Ireland corporation (the “Acquired Company”), in that certain Share Exchange Agreement (the “Exchange Agreement”) to which this Certificate relates are true and correct in all material respects on the date of this Certificate and, except for those representations and warranties which address matters only as of a particular date, with the same force and effect as if made as of this date. 

 

2.Acquired Company is a corporation duly organized and existing under the laws of the Republic of Ireland, and has the corporate power and authority to own its properties and carry on its business in the manner in which such business is conducted. 

 

3.The execution, delivery and performance by Acquired Company of the Exchange Agreement, in accordance with its terms and provisions, have been duly authorized by appropriate corporate action of Acquired Company. 

 

4.Acquired Company has full power, right and authority to enter into the Exchange Agreement and to perform its obligations under the Exchange Agreement and the Exchange Agreement is the legal, valid and binding obligation of Acquired Company and is enforceable against Acquired Company in accordance with its terms. 

 

5.The Ownership Interest of Acquired Company that is the subject to the Exchange Agreement is fully paid and non-assessable and, when transferred and sold on the Closing Date of the Exchange Agreement, will be free and clear of any liens, claims and encumbrances. 

 

6.Acquired Company and the Owner have each performed or complied with, in all material respects, all agreements and covenants required of them by the Exchange Agreement to which this Certificate relates. 

 

Certified and affirmed this ____ day of September, 2024. 

 

 

OWNER:

 

MEXEDIA S.p.A. S.B.

 

EXEMPLAR 

By: __________________________

Orlando Taddeo 

President 

ACQUIRED COMPANY:

 

MEXEDIA DAC

 

EXEMPLAR 

By: __________________________

Orlando Taddeo 

President 

 

 

 



AMENDMENT NO. 1

TO

SHARE EXCHANGE AGREEMENT

 

This constitutes Amendment No. 1 to that certain Share Exchange Agreement (the “Agreement”) dated as of September 9, 2024, by and among Raadr, Inc., a Nevada corporation (“RDAR”), Mexedia DAC, a Republic of Ireland corporation (“Acquired Company”), and Mexedia S.p.A. S.B., the owner of Acquired Company (the “Owner”). 

 

For good and adequate consideration, the receipt and adequacy of which is hereby acknowledged, RDAR, Acquired Company and Owner agree, as follows: 

 

A.Section 1.2 of the Agreement is hereby deleted in its entirety and replaced with the following: 

 

1.2Closing. Unless this Agreement shall have been terminated and the transactions herein contemplated shall have been abandoned pursuant to Article VIII, the closing date of the Exchange (the “Closing”) will take place on the business day upon satisfaction of the conditions set forth in Article VI (or as soon as practicable thereafter following satisfaction or waiver of the conditions set forth in Article VI) (the “Closing Date”), at such time and location as may be agreed upon by RDAR and Acquired Company; provided, however, that the Closing shall take place no later than February 28, 2025. 

 

B.Section 8.(c) of the Agreement is hereby deleted in its entirety and replaced with the following: 

 

(c)by either RDAR or Acquired Company if the Share Exchange shall not have been consummated on or before February 28, 2025 (other than as a result of the failure of the party seeking to terminate this Agreement to perform its obligations under this Agreement required to be performed at or prior to the Effective Time). 

 

In all other aspects, the Agreement is ratified and affirmed as of the 28th day of September, 2024. 

 

[ SIGNATURE PAGE FOLLOWS ]

 

 

 


MEXEDIA DAC AMENDMENT NO. 1 TO SHARE EXCHANGE AGREEMENT   |   PAGE 1



[ SIGNATURE PAGE TO AMENDMENT NO. 1 TO SHARE EXCHANGE AGREEMENT ]

 

 

IN WITNESS WHEREOF, the undersigned have caused their duly authorized officers to execute this Amendment No. 1 to Share Exchange Agreement as of the date first above written. 

 

RDAR:ACQUIRED COMPANY: 

 

RAADR, INC.MEXEDIA DAC 

 

 

By: /s/ Jacob DiMartinoBy: /s/ Orlando Taddeo 

Jacob DiMartinoOrlando Taddeo 

Chief Executive OfficerPresident 

E-Mail: jacob.d@raadr.comE-Mail: otaddeo@mexedia.com 

 

OWNER: 

 

MEXEDIA S.p.A. S.B. 

 

 

By: /s/ Orlando DiMartino 

Orlando Taddeo 

President 

E-Mail: otaddeo@mexedia.com 

 

 

 

 

 

 

 

 

 


MEXEDIA DAC AMENDMENT NO. 1 TO SHARE EXCHANGE AGREEMENT   |   PAGE 2

NEWLAN LAW FIRM, PLLC

2201 Long Prairie Road – Suite 107-762

Flower Mound, Texas 75022

940-367-6154

 

 

November 29, 2024

 

 

Telvantis, Inc.

(formerly Raadr, Inc.)

1680 Michigan Avenue, Suite 700

Miami Beach, Florida 33139

 

Re:Offering Statement on Form 1-A 

 

Gentlemen:

 

We have been requested by Telvantis, Inc., formerly Raadr, Inc., a Nevada corporation (the “Company”), to furnish you with our opinion as to the matters hereinafter set forth in connection with its offering statement on Form 1-A (the “Offering Statement”) relating to the qualification of shares of the Company’s common stock under Regulation A promulgated under the Securities Act of 1933, as amended. Specifically, this opinion relates to 1,500,000,000 shares of the Company’s $0.001 par value common stock (the “Company Shares”). 

 

In connection with this opinion, we have examined the Offering Statement, the Company’s Articles of Incorporation and Bylaws (each as amended to date), copies of the records of corporate proceedings of the Company and such other documents as we have deemed necessary to enable us to render the opinion hereinafter expressed. 

 

For purposes of this opinion, we have assumed the authenticity of all documents submitted to us as originals, the conformity to the originals of all documents submitted to us as copies and the authenticity of the originals of all documents submitted to us as copies. We have also assumed the legal capacity of all natural persons, the genuineness of the signatures of persons signing all documents in connection with which this opinion is rendered, the authority of such persons signing on behalf of the parties thereto other than the Company and the due authorization, execution and delivery of all documents by the parties thereto other than the Company. We have not independently established or verified any facts relevant to the opinions expressed herein, but have relied upon statements and representations of officers and other representatives of the Company and others. 

 

Based upon and subject to the foregoing qualifications, assumptions and limitations and the further limitations set forth below, we are of the opinion that the 1,500,000,000 Company Shares being offered by the Company will, when issued in accordance with the terms set forth in the Offering Statement, be legally issued, fully paid and non-assessable shares of common stock of the Company. 


Our opinion expressed above is subject to the qualification that we express no opinion as to the applicability of, compliance with, or effect of any laws except the Nevada Revised Statutes (including the statutory provisions and reported judicial decisions interpreting the foregoing). 

 

We hereby consent to the use of this opinion as an exhibit to the Offering Statement and to the reference to our name under the caption “Legal Matters” in the Offering Statement and in the offering circular included in the Offering Statement. We confirm that, as of the date hereof, we own no shares of the Company’s common stock, nor any other securities of the Company. 

 

Sincerely,  

 

/s/ Newlan Law Firm, PLLC 

 

NEWLAN LAW FIRM, PLLC 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


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