FACTORING AND SECURITY AGREEMENT


 


THIS FACTORING AND SECURITY
AGREEMENT ("Agreement") is deemed executed and binding as of Nov 10th, 2011, by and between Sunvalley
Solar, Inc ("Seller") a Nevada registered company, its subsidiaries and affiliated companies (including all DBAs), and
CapFlow Funding Group Managers LLC, a Delaware limited liability company ("Purchaser").


 


1. Definitions and Index to Definitions.
The following terms used in this section shall have the following meanings. Each capitalized term not herein defined shall have
the meaning set forth in the Uniform Commercial Code:


 


1.1 "Account"
- any right to payment for goods sold or leased or for services rendered which is not evidenced by an instrument or chattel paper,
whether or not it has been earned by performance.


 


1.2 "Account Debtor"
-means a person obligated on an account, chattel paper, or general intangible.


 


1.3 "Avoidance Claim"
- any claim that any payment received by Purchaser is a fraudulent conveyance, preference, or is otherwise avoidable under Title
11 of the United States Bankruptcy Code, any other debtor relief statute or any other law.


 


1.4 "Base Fees"
- the Initial Factoring Fee and all subsequent Factoring Fees


 


1.5 "Chosen State"
- shall be New Jersey


 


1.6 "Clearance Days"-
three (3) banking days for checks drawn on United States banks; otherwise, ten (10) days.


 


1.7 "Closed"
- a Purchased Account is closed upon the first to occur of: (i) receipt of full payment by Purchaser or (ii) the unpaid Face Amount
has been charged by Purchaser to the Reserve Account pursuant to the terms hereof.


 


1.8 "Collateral"-
all Seller's now owned and hereafter acquired Accounts, Chattel Paper, Deposit Accounts, Inventory, Equipment, Instruments, Investment
Property, Documents, Letter of Credit Rights, Commercial Tort Claims, General Intangibles (excluding Intellectual Property), Supporting
Obligations and any sums maintained by Purchaser that are identified as payable to Seller from the Reserve Account.


 


1.9 "Complete Termination"
- Complete Termination occurs upon satisfaction of each of the following conditions:


 


1.9.1. Payment in full
of all Obligations of Seller to Purchaser and Purchaser's issuance of a UCC termination statement;


 


1.9.2. If Purchaser has
issued or caused to be issued any guaranty, promise, or letter of credit on behalf of Seller, acknowledgement from any beneficiaries
thereof that Purchaser or any other issuer has no outstanding direct or contingent liability therein; and


 


1.9.3. Seller has executed
and delivered to Purchaser a general release in the form of Exhibit 1.7.3 attached hereto.


 


1.10 "Early Termination
Date" - see Section 19.1 hereof


 


1.11 "Early Termination
Fee" - shall be 5%.



    	 



    	 



    

 


1.12 "Eligible Account"
- an Account that is acceptable for purchase as determined by Purchaser in the exercise of its reasonable sole credit or business
judgment, however, the following Accounts will not qualify as Eligible Accounts:


i) accounts that have been outstanding
greater than 130 days;


ii) invoices from account debtors that
have receivables greater than 130 days ("cross-age accounts") or that are currently in dispute;


iii) account debtors that are currently
seeking or are under bankruptcy protection;


iv) invoices that are less than $500;


v) invoices from customers whereby
the Seller is both a creditor and debtor ("contra accounts");


vi) invoices generated from unapproved
foreign receivables.


 


1.13 "Events of Default"
- see Section 16.1.


 


1.14 "Exposed Payments"
- any payments received by Purchaser from or for the account of a Payor that has become subject to a bankruptcy or other form of
debtor relief proceeding, to the extent such payments cleared the Payor's deposit account within ninety days of the commencement
of said bankruptcy case or are otherwise subject to avoidance.


 


1.15 "Face Amount"
- the total gross amount due on an Account at the time of purchase.


 


1.16 "Factoring Fee"
- the Factoring Fee Percentage multiplied by the Face Amount of a Purchased Account, for each Factoring Fee Period that any portion
thereof remains unpaid, computed from the end of the Initial Fee Period to and including the date on which a Purchased Account
is Closed.


 


1.17 "Factoring Fee
Percentage" - shall be 0.95% for each fifteen day period after the Initial Factoring Fee Period and commencing on the 31st
day after purchase. The Factoring Fees for each Factoring Fee Period (including the Initial Factoring Fee) will be as follows:


 


	Invoice Aging	Periodic Amount	Cumulative
	1-30 days	1.85%	1.85%
	31-45 days	0.95%	2.80%
	Each 15 day period thereafter	0.95%	N/A


 


1.18 "Factoring Fee
Period" - shall be 15 days for all periods except the initial period, which shall be 30 days.


 


1.19 "Initial Factoring
Fee" - shall be 1.85% of the Face Amount for the first 30 day period.


 


1.20 "Initial Fee
Period" - shall be 30 days from the date on which the Purchase Price is paid to Seller or credited by Purchaser to Seller's
Reserve Account.


 


1.21 "Invoice"
- any form of document that evidences or is intended to evidence an Account. Where the context so requires, reference to an Invoice
shall be deemed to refer to the Account to which it relates.


 


1.22 "Late Payment
Factoring Fee" - shall be 0.10% per day.


 


1.23 "Late Payment
Date" - the date which is 131 days from the funding date on a Purchased Account.


 


1.24 "Maximum Amount"
- shall be $600,000. The total Maximum Amount shall be increased to $1,000,000 once outstandings total $500,000.



    	2



    	 



    

 


1.25 "Minimurn Invoice
Fee" - shall be $25.


 


1.26 "Misdirected
Payment Fee" - if after one (1) month from closing, the Company receives an invoice payment from an account debtor and fails
to remit the payment to CFG within three (3) business days, then the Company shall pay a penalty fee equal to the lesser of: i)
15% on the face amount of the invoice, or ii) $400.00 (all invoice payments should be directed to lockbox).


 


1.27 "Obligations"
- all present and future obligations and liabilities owing by Seller to Purchaser, whether direct or indirect, absolute or contingent,
including obligations and liabilities that are likely to become owing by Seller to Purchaser, whether arising hereunder or otherwise,
and whether arising before, during or after the commencement of any case filed under title 11 of the United States Bankruptcy Code
or any other debtor relief proceeding in which Seller is a Debtor.


 


1.28 "Parties"
- the Seller and Purchaser.


 


1.29 "Payor"
- an Account Debtor or other obligor on an Account, including an entity making payment thereon for the account of such party.


 


1.30 "Purchase Date"
- the date on which Seller has been advised in writing that Purchaser has agreed to purchase an Account or in which Purchaser has
caused a credit to be made to Seller's Reserve Account.


 


1.31 "Purchase Price"
- the Face Amount of a Purchased Account less all Base Fees.


 


1.32 "Purchased Accounts"
- are Accounts purchased hereunder which have not been Closed.


 


1.33 "Registered
Organization" - shall have the meaning as defined in the Uniform Commercial Code, Section 9-201(a) (70).


 


1.34 "Repurchased"
- an Account has been repurchased when Seller has paid to Purchaser the then unpaid Face Amount.


 


1.35 "Required Reserve
Amount" - the Reserve Percentage multiplied by the unpaid balance of all Purchased Accounts.


 


1.36 "Reserve Account"
- a bookkeeping account on the books of the Purchaser representing the portion of the Purchase Price which has not been paid by
Purchaser to Seller, maintained by Purchaser to secure Seller's performance with the provisions hereof


 


1.37 "Reserve Percentage"
- shall be 25% of the Federal grant amount of an invoice that has been approved by both the City and utility. When the independent
project auditor distributes a "DRAFT" version of a project's costs, the Reserve Percentage shall decrease to 20%.


 


1.38 "Reserve Shortfall"
- the amount by which the Reserve Account is less than the Required Reserve Amount.


 


1.39 "Schedule of
Accounts" - a form supplied by Purchaser from time to time wherein Seller lists such of its Accounts as it requests that Purchaser
purchase under the terms of this Agreement.


 


1.40 "Security Interest"
- shall have the meaning as defined in the Uniform Commercial Code, Section 1-201(a)(35)


 


1.41 "Term"
- a one (1) year period.


 


1.42 "UCC" -
the Uniform Commercial Code as adopted in the Chosen State.


 


2. Sale; Purchase Price; Billing


 



    	3



    	 



    

 


2.1 Assignment and Sale.


 


2.1.1. Seller shall offer
for sale to Purchaser, as absolute owner, such of Seller's Accounts as are listed from time to time on Schedules of Accounts as
displayed in Exhibit 2.1.1.


 


2.1.2. Each Schedule of
Accounts shall be accompanied by such documentation supporting and evidencing each Account, as Purchaser sha1l1i'om time to time
request.


 


2.1.3. Purchaser may, but
need not, purchase from Seller such Accounts as Purchaser determines to be Eligible Accounts.


 


2.1.4. Purchaser may elect
not to purchase any Account which will cause the unpaid balance of Purchased Accounts to exceed the Maximum Amount. However, if
Purchaser purchases Accounts in excess of the Maximum Amount, same shall have no adverse consequences to Purchaser.


 


2.1.5. Purchaser shall
pay to Seller on the next business day following the Purchase Date the Purchase Price of any Purchased Account, less any amounts
due to Purchaser from Seller, including, without limitation, any amounts due under Sections 3.1 and 6 hereof, whereupon the Accounts
shall be deemed purchased hereunder.


 


2.2 Billing. Purchaser
may send a periodic statement to all Payors itemizing their account activity during the preceding billing period. All Payors will
be instructed to make payments exclusively to Purchaser.


 


2.3 Collections. All collections
of purchased Accounts and other proceeds of Collateral shall be deposited into a lockbox controlled by the Purchaser upon which
Purchaser shall have a perfected first priority security interest. Purchaser shall provide details of the lockbox to Seller prior
to entering into a transaction. CFG shall purchase additional invoices two times each week, and will remit lockbox funds one day
after receipt of a payment executed by wire, and up to five days after receipt of a payment by check.


 


3. Reserve Account.


 


3.1 Seller shall pay to
Purchaser on demand the amount of any Reserve Shortfall.


 


3.2 Purchaser is required,
and shall pay to Seller, on a weekly basis any amount by which the Reserve Account exceeds the Required Reserve Amount. Failure
of Purchaser to make any required payments to Seller, as detailed in this Agreement, shall result in an event of default and a
termination of the Agreement and no break-up fee as detailed in Section 19.2 would be due.


 


3.3 Purchaser may charge
the Reserve Account with any Obligation


 


3.4 Purchaser may pay
any amounts due Seller hereunder by a credit to the Reserve Account


 


3.5 Purchaser may retain
the Reserve Account until Complete Termination.


 


3.6 If, upon Complete
Termination of the Agreement and absent an Event of Default, Purchaser fails to return all monies due to Seller, Purchaser shall
be liable to Seller for all amounts due. If Seller incurs legal costs or collection costs in order to collect monies that are found
to be owed to the Seller, then Purchaser will be responsible to Seller for all costs reasonably required to collect monies unjustifiably
withheld by Purchaser.


 


4. Exposed Payments.


 


4.1 Upon termination of
this Agreement Seller shall pay to Purchaser (or Purchaser may retain or hold in a non-segregated non-interest bearing account)
the amount of all Exposed Payments (the "Preference Reserve").


 


4.2 Purchaser may charge
the Preference Reserve with the amount of any Exposed Payments that Purchaser pays or is reasonably likely to pay to the bankruptcy
estate of a Payor that made the Exposed Payment, on account of a claim asserted under Section 547 of the Bankruptcy Code.



    	4



    	 



    





4.3 Purchaser shall refund
to Seller from time to time that balance of the Preference Reserve for which a claim under Section 547 of the Bankruptcy Code can
no longer be asserted due to the expiration of the statute of limitations, settlement with the bankruptcy estate of the Payor or
otherwise.


 


5. Authorization for Purchases.
Subject to the terms and conditions of this Agreement, Purchaser is authorized to purchase Accounts upon telephonic, facsimile
or other instructions received from anyone purporting to be an officer, employee or representative of Seller.


 


6. Fees and Expenses. Seller
shall pay to Purchaser:


 


6.1 Initial Factoring
Fee. The Initial Factoring Fee (i) on the Late Payment Date or (ii) the date on which a Purchased Account is closed, whichever
is earlier.


 


6.2 Factoring Fee. The
Factoring Fee, for each Factoring Fee Period, computed from the end of the Initial Factoring Fee Period and (i) until the Late
Payment Date or (ii) the date on which a Purchased Account is Closed, whichever is earliest.


 


6.3 Misdirected Payment
Fee. Any Misdirected Payment Fee immediately upon its accrual.


 


6.4 Late Payment Factoring
Fee. The Late Payment Factoring Fee, on demand, on all past due amounts due from Seller to Purchaser hereunder.


 


6.5 Minimum Volume Fee.
None


 


6.6 Out-of-pocket Expenses.
The out-of-pocket expenses directly incurred by Purchaser in the administration of this Agreement or any other agreement that is
executed between the parties such as wire transfer fees of $25 for all outgoing wire transfers, postage, search fees, travel expenses
and collateral audit fees. Seller will pay the Purchaser $1,000 in closing costs (a one-time fee) to cover the cost of legal, collateral
valuations, credit inquiries and other administrative expenses, with $500 due prior to executing this Agreement, and $500 deducted
from the first two advances


 


6.7 Renewal Fee. None


 


6.8 Minimum Invoice Fee.
Seller shall be obligated to pay Purchaser the Minimum Invoice Fee.


 


7. Repurchase Of Accounts. Purchaser
may require that Seller repurchase, on demand, by payment of the then unpaid Face Amount thereof, together with any unpaid Base
Fees relating to the Purchased Account, to replace an Account with a new, acceptable Account, or at Purchaser's option, by Purchaser's
charge to the Reserve Account:


 


7.1 Any Purchased Account:


 


7.1.1 The payment of which
has been disputed by the Account Debtor obligated thereon, Purchaser being under no obligation to determine the bona fides of such
dispute;


 


7.1.2 For which Seller
has breached any covenant or representation and warranty as set forth in Sections 12 and 14 hereof.


 


7.1.3 All Purchased Accounts
upon the occurrence of an Event of Default, or upon the termination date of this Agreement; and


 


7.1.4 Any Purchased Account
which remains unpaid beyond the Late Payment Date.


 


8. Security Interest.


 


8.1 In order to secure
the Obligations, Seller grants to Purchaser a continuing first priority security interest in


the Collateral.



    	5



    	 



    





8.2 Notwithstanding the
creation of this security interest, the relationship of the parties in respect to all Purchased Accounts shall at all time be that
of purchaser and seller, and not that of lender and borrower.


 


8.3 The security interest
created hereby shall not render Purchaser liable to observe or perform any term, covenant or condition of any agreement, document
or instrument to which Seller is a party or by which it is bound, including any interest in any unlimited liability company.


 


8.4 Seller acknowledges
that value has been given and agrees that the security interest granted hereby shall attach when it signs this Agreement.


 


9. Clearance Days. For all purposes
under this Agreement, Clearance Days will be added to the date on which Purchaser receives any payment.


 


10. Authorization to Purchaser.


 


10.1 Seller irrevocably
authorizes Purchaser, to exercise at any time any ofthe following powers until all of the Obligations have been paid in full:


 


10.1.1. Receive, take,
endorse, assign, deliver, accept and deposit, in the name of Purchaser or Seller, any and all proceeds of any Collateral securing
the Obligations or the proceeds thereof;


 


10.1.2. Take or bring,
in the name of Purchaser or Seller, all steps, actions, suits or proceedings deemed by Purchaser necessary or desirable to effect
collection of or other realization upon Purchaser's Accounts;


 


10.1.3. Pay any sums necessary
to discharge any lien or encumbrance which is or may become senior to Purchaser's ownership rights in the Purchased Accounts or
security interest in any other assets of Seller, which sums shall be included as Obligations hereunder;


 


10.1.4. Notify any Payor
obligated with respect to any Account, that the underlying Account has been assigned to Purchaser by Seller and that payment thereof
is to be made to the order of and directly and solely to Purchaser. Purchaser shall provide its lockbox (or other address) payment
instructions to Seller and Account Debtors;


 


10.1.5. Communicate directly
with Seller's Payors to, among other things, verify the amount and validity of any Account created by Seller.


 


10.1.6. After an Event
of Default, and at Seller's expense:


 


(a) Change the
address for delivery of mail to Seller and to receive and open mail addressed to Seller and to the extent mail appears to be unrelated
to Purchaser's interests, make such mail available to Seller three (3) days after Purchaser first receives physical possession
of Seller's mail;


 


(b) Extend the
time of payment of, compromise or settle for cash, credit, return of merchandise, and upon any terms or conditions, any and all
Accounts and discharge or release any Payor without affecting any of the Obligations;


 


10.1. 7. File any initial financing
statements and amendments thereto that:


 


(a) Indicate
the Collateral as all assets of the Seller (excluding Intellectual Property) or words of similar effect, regardless of whether
any particular asset comprising the Collateral falls within the scope of Article 9 of the DCC, or as being of an equal or lesser
scope or with greater detail;


 


(b) Contain any
other information required by part 5 of Article 9 of the DCC for the sufficiency or filing office acceptance of any financing statement
or amendment, including (i) whether the Seller is a Registered Organization, the type of organization, and any organization identification
number issued to the



    	6



    	 



    

 


Seller and, (ii) in the case of a
financing statement filed as a fixture filing or indicating collateral as as-extracted collateral or timber to be cut, a sufficient
description of real property to which the collateral relates; and


 


(c) Contain a
notification that the Seller has granted a negative pledge to the Purchaser, and that any subsequent holder of a Security Interest
or lien may be tortiously interfering with Purchaser's rights.


 


10.1.8. Advises third parties that
any notification of Seller's Account Debtors will interfere with Purchaser's collection rights.


 


10.1.9. File any Correction Statement
in the name of Seller under Section 9-518 of the Uniform Commercial Code that Purchaser reasonably deems necessary to preserve
its rights hereunder.


 


10.2 Seller authorizes
Purchaser to accept, endorse and deposit on behalf of Seller any checks tendered by a Payor "in full payment" of its
obligation to Seller. Seller shall not assert against Purchaser any claim arising therefrom, irrespective of whether such action
by Purchaser effects an accord and satisfaction of Seller's claims, under §3-311 of the Uniform Commercial Code, or otherwise.


 


11. ACH Authorization. In order
to satisfy any of the Obligations, Seller authorizes Purchaser to initiate electronic debit or credit entries through the ACH system
in an Event of Default.


 


12. Covenants by Seller.


 


12.1 After written notice
by Purchaser to Seller, and automatically, without notice, after an Event of Default, Seller shall not, without the prior written
consent of Purchaser in each instance, (a) grant any extension of time for payment of any of its Accounts, (b) compromise or settle
any of its Accounts for less than the full amount thereof, (c) release in whole or in part any Payor, or (d) grant any credits,
discounts, allowances, deductions, return authorizations or the like with respect to any of the Accounts.


 


12.2 From time to time
as requested by Purchaser, Purchaser or its designee shall have access, during reasonable business hours if prior to an Event of
Default and at any time if on or after an Event of Default, to all business premises of the Seller and where Collateral is located
for the purposes of inspecting (and removing, if after the occurrence of an Event of Default) any of the Collateral and Seller's
books and records, and Seller shall permit Purchaser or its designee to make copies of such books and records or extracts therefrom,
without expense to Purchaser, as Purchaser may request. If an Event of Default has occurred, Purchaser may use the Seller's personnel,
equipment, including computer equipment, programs, printed output and computer readable media, supplies and premises for the collection
of Accounts and realization on other Collateral as Purchaser deems appropriate. Seller hereby irrevocably authorizes all accountants
and third parties, to promptly disclose and deliver to Purchaser at Seller's expense all financial information, books and records,
work papers, management reports and other information in their possession relating to Seller and in respect thereto irrevocably
waives any privilege that may otherwise preclude such production. Seller will allow a third party to conduct due diligence on the
Collateral and books and records once a year, at Seller's expense. This annual due diligence expense shall not exceed $200.


 


12.3 Before sending any
Invoice to an Account Debtor, Seller shall mark same with a notice of assignment and a duty to pay Purchaser in the form and manner
as may be required by Purchaser.


 


12.4 Seller shall pay
when due all payroll, sale, use and other taxes, and shall provide proof thereof to Purchaser in such form as Purchaser shall reasonably
require.


 


12.5 Seller shall not
create, incur, assume or permit to exist any additional debt by the Seller, except as approved by Purchaser in writing and subject
to an Intercreditor Agreement in form and substance acceptable to Purchaser, excluding Permitted Indebtedness (as defined below).


 


"Permitted Indebtedness"
is: (a) Seller's Obligations to Purchaser under this Agreement;



    	7



    	 



    



(b) subordinated debt; (c) Indebtedness
to trade creditors incurred in the ordinary course of business; (d) Indebtedness secured by Permitted Liens; (e) Indebtedness
existing on the date of this Agreement and shown on the perfection certificate; (f) Indebtedness incurred as a result of
endorsing negotiable instruments received in the ordinary course of business; and (g) extensions, refinancings,
modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (f) above, provided that the
principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Seller,
as the case may be.


 


12.6 Seller shall not
create, incur, assume or pennit to exist any ownership interests or Security Interest or any other form of lien upon or with respect
to any assets in which Purchaser now or hereafter holds a Security Interest or ownership interest except for Permitted Liens (as
defined below) unless Seller obtains the consent of Purchaser and an Intercreditor Agreement in a form and content acceptable to
Purchaser. For purposes of clarity, no provision of this Agreement shall be interpreted as either preventing the Seller from conducting
bona fide equity financings or requiring notice to or consent of the Purchaser in the event of such financings.


 


"Permitted Liens"
are: (a) Liens existing on the date of this agreement and shown on the perfection certificate or arising under this Agreement;
(b) liens for taxes, fees, assessments or other government charges or levies, either not delinquent or being contested in good
faith and for which Seller maintains adequate reserves on its Books, if they have no priority over Purchaser's security interests;
( c) Leases or subleases and non -exclusive licenses or sublicenses granted in the ordinary course of Seller's business; (d) Liens
incurred in the extension, renewal or refinancing of the indebtedness secured by Liens described in (a) through (c), but any extension,
renewal or replacement lien must be limited to the property encumbered by the existing lien and the principal amount of the indebtedness
may not increase; (e) non -exclusive licenses of Intellectual Property granted to third parties in the ordinary course of business;
(f) liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under
Sections 16.1; and (h) liens in favor of other financial institutions arising in connection with Seller's deposit and/or securities
accounts held at such institutions, provided that Purchaser has a perfected security interest in the amounts held in such deposit
and/or securities accounts in accordance with the tenus of this Agreement and are identified to the Purchaser prior to execution
of this Agreement.


 


12.7 Seller shall maintain
insurance on all insurable property owned or leased by Seller in the manner as usually maintained by owners of similar businesses
and properties in similar geographic areas. Seller shall furnish to Purchaser upon written request: (a) any and all information
concerning such insurance carried; (b) lender loss payable endorsements (or their equivalent) in favor of Purchaser. All policies
of insurance shall provide for not less than thirty (30) day's prior written cancellation notice to Purchaser.


 


12.8 Seller shall pay
to Purchaser on the 2nd banking day following the date of receipt by Seller the amount of any payment on account of a Purchased
Account.


 


12.9 Seller shall furnish
Purchaser with full financial statements and other documents and information, including, but not limited to, proof of payment and/or
compliance with all federal, state and/or local tax requirements, within forty five (45) days from the end of each quarter. Seller
shall maintain a standard and modern system of accounting in accordance with Generally Accepted Accounting Principles. Seller agrees
to permit Purchaser and any of its employees, officers or agents access to and examination of Seller's records and books. The Seller
shall provide Purchaser monthly financial reports as soon as available but no later than thirty (30) days after the last day of
the month including, but not limited to, detailed description of the Collateral per Purchaser's specifications, Budget (as soon
as available), financial statements (unaudited income statement, balance sheet and cash flow statement), as well as usual and customary
reports for a transaction of this nature.


 


12.10 Avoidance Claims.


 


12.10.1. Seller shall indemnify
Purchaser from any loss arising out of the assertion of any Avoidance Claim and shall pay to Purchaser on demand the amount thereof


 


12. 10.2. Seller shall
notify Purchaser within two business days of it becoming aware of the assertion of an Avoidance Claim.


 


12.10.3. This section 12.10
shall survive termination of this Agreement.



    	8



    	 



    

 


12.11 Seller shall not
issue any dividends, make any extraordinary expenditures, pledge or sell any assets outside the ordinary course or engage in material
activities or capital expenditures except as discussed with and approved by Purchaser and contemplated in the year-end budget.


 


12.12 Seller shall not
merge, consolidate or sell any significant assets without the consent of the Purchaser.


 


12.13 James Zhang shall
execute and provide a validity guarantee which requires all information sent by Seller to Purchaser to be accurate.


 


12.14 Seller shall remain
in compliance with any/all other significant debt, equity and operating agreements it has entered into now and in the future.


 


12.15 Seller shall cooperate
with any and all third party service providers that the Purchaser introduces and will provide information and will make management
available to these service providers in the same manner the Seller interacts with the Purchaser.


 


12.16 Seller shall assist
in the execution of estoppels between Account Debtors and/or Seller and Purchaser, if applicable. All future (unsigned) contracts
will require the Account Debtor to sign estoppels.


 


13. Account Disputes. Seller
shall notify Purchaser promptly of and, if and only if requested by Purchaser, settle all disputes concerning any Purchased Account,
at Seller's sole cost and expense. Purchaser may, but is not required to, attempt to settle, compromise, or litigate (collectively,
"Resolve") the dispute upon such terms, as Purchaser in its sole discretion may deem advisable, for Seller's account
and risk and at Seller's sole expense. All invoices that are in dispute are ineligible as defined in Eligible Accounts.


 


14. Representation and Warranties.
Seller and each of its principals represents and warrants that:


 


14.1 It is fully authorized
to enter into this Agreement and to perform hereunder.


 


14.2 This Agreement constitutes
its legal, valid and binding obligation


 


14.3 Seller is solvent
and in good standing in the jurisdiction of its organization.


 


14.4 The Purchased Accounts
are and will remain:


 


14.4.1. Bona fide existing
obligations created by the complete and unconditional sale and delivery of goods or the rendition of services in the ordinary course
of Seller's business;


 


14.4.2. Unconditionally
owed and will be paid to Purchaser without defenses, disputes, offsets, counterclaims, or rights of return or cancellation; and,


 


14.4.3. Sales to a customer
that is not, directly or indirectly, affiliated with Seller or in any way not an "arms length" transaction.


 


14.5 Seller has not received
notice or otherwise learned of actual or imminent bankruptcy, insolvency, or material impairment of the material condition of any
applicable Payor regarding Purchased Accounts.


 


14.6 Seller is: either
a corporation, limited liability company, limited partnership or other form of Registered Organization, duly organized, validly
existing and in good standing under the laws of the state of its incorporation or organization and is qualified and authorized
to do business and duly licensed, if necessary and in good standing in every state in which such qualification and good standing
are necessary or desirable.


 


14.7 Immediately prior
to the execution and at the time of delivery of each Schedule of Account, Seller is the sole owner and holder of each of the Accounts
described thereon and that upon Purchaser's acceptance of each Purchased Account; it shall become the sole owner of such Purchased
Account(s).



    	9



    	 



    

 


14.8 No Purchased Account
shall have been previously sold or transferred or be subject to any lien, encumbrance, Security Interest or other claim of any
kind or nature, other than Permitted Liens. Seller will not sell, transfer, assign, mortgage, pledge, lease, grant a security interest
in, or encumber any of its intellectual property without Purchaser's prior written consent.


 


14.9 Seller will not factor,
sell, transfer, pledge or give a Security Interest in any of its Accounts to anyone other than Purchaser during the Term of this
Agreement and there are and shall at no time be any financing statements now or hereafter on file in any public office covering
any of Seller's Collateral except the financing statement or statements filed or to be filed in respect of this Agreement or those
statements now on file that have been disclosed in writing by Seller to Purchaser as reflected on the attached Exhibit 14.9.


 


14.10 Seller shall maintain
its books and records in accordance with generally accepted accounting principles and shall reflect on its books the absolute sale
of the Purchased Accounts to Purchaser.


 


14.11 Seller shall furnish
Purchaser such financial information as required in Section 12.9.


 


14.12 Seller will promptly
notify Purchaser of (i) the filing of any lawsuit against Seller involving amounts greater than $10,000.00 or (ii) any attachment
or any other legal process served or levied against Seller.


 


14.13 The application
made or delivered by or on behalf of Seller in connection with this Agreement, and all statements made therein, were at the time
that this Agreement is executed and shall at all times remain true and correct and Seller has complied with all fee requirements
and obligations in connection therewith. There is no fact which Seller has not disclosed to Purchaser in writing which could adversely
affect the properties, business or financial condition of Seller, or any of the Purchased Accounts or Collateral, or which is necessary
to disclose in order to keep the foregoing representations and warranties from being misleading.


 


14.14 In no event shall
the funds paid to Seller hereunder be used directly or indirectly for personal, family, household or agricultural purposes.


 


14.15 Seller does business
under no trade or assumed names except as indicated specifically identified otherwise in Exhibit 14.15.


 


14.16 Each written or
electronic communication issued by Seller to Purchaser will be authentic and genuine.


 


14.17 All Purchase Price
payments will be used by Seller for routine working capital needs.


 


15. Indemnification. Seller agrees
to indemnify Purchaser against and save Purchaser harmless from any and all manner of suits, claims, liabilities, demands and expenses
(including reasonable attorneys' fees and collection costs) resulting from or arising out Seller's breach of this Agreement, whether
directly or indirectly, including the transactions or relationships contemplated hereby (including the enforcement of this Agreement),
and any failure by Seller to perform or observe its obligations under this Agreement.


 


16. Default.


 


16.1 Events of Default.
The following events will constitute an Event of DefauIt hereunder: (a) Seller defaults in the payment of any Obligations or in
the performance of any provision hereof or of any other agreement now or hereafter entered into with Purchaser, or any warranty
or representation contained herein proves to be false, (b) Seller or any guarantor of the Obligations becomes subject to any debtor-relief
proceedings, (c) any third party lien (other than a Permitted Lien), garnishment, attachment or the like shall be issued against
or shall attach to the Purchased Accounts, the Collateral or any portion thereof and the same is not released within five (5) days;
(d) Seller suffers the entry against it of a final judgment for the payment of money in excess of $10,000.00, unless the same is
satisfied, vacated or stayed within ten (10) days after the date of entry thereof; ( e) Seller shall have a federal, state or other
form of tax lien filed against any of its properties (other than a Permitted Lien), current liens disclosed by the Seller excepted;
or (f) Seller is in breach of Section 12.11, 12.12, 12.13, 12.14, 12.15 and 12.16 above, or (g) Seller fails to pay any other cash
obligations to shareholders, lenders, government agencies or other,



    	10



    	 



    

 


and such payment is unpaid
for 30 days, or; (h) in the Purchaser's good faith business judgment, a material adverse change shall have occurred in Seller's
financial conditions, business or operations.


 


16.2 Effect of Default.
Upon the occurrence of any Event of Default:


 


16.2.1. In addition to
any rights Purchaser has under this Agreement or applicable law, Purchaser may immediately terminate this Agreement, at which time
all Obligations shall immediately become due and payable without notice.


 


16.2.2. The Late Payment
Factoring Fee shall accrue and is payable on demand on any Obligation not paid when due.


 


16.2.3. Purchaser shall
be entitled to any form of equitable relief that may be appropriate.


 


16.2.4. Purchaser shall
be entitled to freeze, debit and/or effect a set-off against any fund or account Seller may maintain with any Bank.


 


16.2.5. Purchaser may seek
equitable relief, including, but not limited to, injunctive or receivership remedies and Seller waives any requirement that Purchaser
post or otherwise obtain or procure any bond, whether otherwise required under state or federal law or rules of court. Seller waives
any right it may be entitled to, including an award of attorney's fees or costs, in the event any equitable relief sought by and
awarded to Purchaser is thereafter, for whatever reason(s), vacated, dissolved or reversed. All post-judgment interest shall bear
interest at the greater of (a) eighteen percent (18%) or (b) the highest rate as may be allowed by law.


 


16.2.6. All of Seller's
rights of access that may be made available to Seller to any online internet services that Purchaser may make available to Seller
shall be provisional pending any curing of such Events of Default. During such period of time, Purchaser may limit or terminate
Seller's access to Purchaser's online services. Seller acknowledges that the information Purchaser makes available to Seller constitutes
and satisfies any duty to respond to a Request for an Accounting or Request regarding a Statement of Account that is referenced
in § 9-210 of the UCC.


 


16.2.7. The Parties acknowledge
that Purchaser shall have no duty to undertake to collect any Account or Purchased Account including those in which Purchaser receives
information from any Payor that a Dispute exists. In the event Purchaser undertakes to collect from or enforce an obligation of
any Payor and ascertains that the possibility of collection is outweighed by the likely costs and expenses that will be incurred,
Purchaser may at any such time cease any further collection efforts and such action shall be considered commercially reasonable.


 


16.3. Seller's sole remedy
for any breach alleged to have been committed by Purchaser of any obligation or duty owed under the Agreement, any other agreement
between Seller and Purchaser or any duty or obligation arising out of or related to this Agreement shall be limited to the lesser
of (a) any amount in the Reserve Account at the time notice of such breach is first given to Purchaser, in writing, or (b) any
amounts owed to Seller related to the purchase of Accounts subject to the Agreement. Purchaser shall not be liable for any incidental,
special or consequential damages, including, but not limited to, loss of goodwill or any other losses associated therewith. Purchaser
shall be liable to Seller for unreturned funds as detailed in Section 3.


 


17. Account Stated. Purchaser
shall provide Seller with information on the Purchased Accounts and a monthly reconciliation of the factoring relationship relating
to billing, collection and account maintenance such as aging, posting, error resolution and mailing of statements. Each statement,
report, or accounting rendered or issued by Purchaser to Seller shall be deemed conclusively accurate and binding on Seller unless
within fifteen (15) days after the date of issuance Seller notifies Purchaser to the contrary by electronic communication with
proof of receipt, registered or certified mail, setting forth with specificity the reasons why Seller believes such statement,
report, or accounting is inaccurate, as well as what Seller believes to be correct amount(s) therefore.


 


18. Amendment and Waiver.
Only a writing signed by all parties hereto may serve to amend this Agreement. No failure or delay in exercising any right
hereunder shall impair any such right that Purchaser may have, nor shall any waiver by Purchaser hereunder be deemed a waiver of
any default or breach subsequently occurring. Purchaser's



    	11



    	 



    





rights and remedies herein are cumulative and
not exclusive of each other or of any rights or remedies that Purchaser would otherwise have.


 


19. Termination; Effective Date.


 


19.1 This Agreement will
be effective on the date indicated in the introduction to this Agreement, shall continue for the Term, and may be extended for
successive Terms upon mutual written agreement by both parties unless Seller issues, at any time, a written notice to terminate
prior to 60 days before the Term (an "Early Termination Date").


 


19.2 Either Seller or
Purchaser may voluntarily terminate the Factoring Facility with sixty (60) days prior written notice. Seller shall pay a break-up
fee of 5% of the Facility Amount if the Seller terminates during the first six (6) months after closing. However, Seller may terminate
the agreement for cause (if Purchaser does not advance funds to Seller in a timely manner or fails to pay excess from the Reserve
Account as detailed in this Agreement) without incurring the break-up fee.


 


19.3 Purchaser may terminate
this Agreement by giving Seller at least sixty day's (60) prior written notice of termination, whereupon this Agreement shall terminate
on the earlier date of the date of termination or the end of the then current Term.


 


19.4 Upon termination,
Seller shall pay the Obligations to Purchaser and Purchaser shall thereafter have no duty to purchase any Accounts from Seller.
Notwithstanding termination, until Complete Termination, Seller shall remain obligated to tender all Accounts to Purchaser notwithstanding
that Purchaser may thereafter determine that no Account qualifies as an Eligible Account.


 


20. No Lien Termination without Release.
Notwithstanding payment in full of all Obligations by Seller, Purchaser shall not be required to file any UCC termination statements
or satisfactions of any Security Interest in the Collateral unless and until Complete Termination has occurred.


 


21. Conflict. Unless otherwise
expressly stated in any other agreement between Purchaser and Seller, if a conflict exists between the provisions of this Agreement
and the provisions of such other agreement, the provisions of this Agreement shall control.


 


22. Severability. In the event
anyone or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable in any respect, then
such provision shall be ineffective only to the extent of such prohibition or invalidity, and the validity, legality, and enforceability
of the remaining provisions contained herein shall not in any way be affected or impaired thereby.


 


23. Construction. This Agreement
and all agreements relating to the subject matter hereof shall be deemed the product of joint negotiation by and among each party
and shall be construed accordingly.


 


24. Relationship of Parties.
It is the express intention of the parties that pursuant to § 9-318(a) of the UCC as to all Purchased Accounts their relationship
shall be that of seller and purchaser of Accounts, that Seller shall, once acquired by Purchaser, no longer have any right, title
or interest in and to any Purchased Account and Purchaser shall at no time be deemed to be or become a fiduciary of the Seller,
although Seller may be a fiduciary of the Purchaser.


 


25. Attorneys' Fees. Seller agrees
to reimburse Purchaser on demand for:


 


25.1 The actual amount
of all costs and expenses, including attorneys' fees, which Purchaser has incurred or may incur in:


 


25.1.1. Negotiating, preparing,
or administering the execution of this Agreement and any documents prepared in connection herewith up to a maximum of $1 ,000 as
detailed in Section 6.6;



    	12



    	 



    

 


25.1.2. Protecting, preserving
or enforcing any lien, security or other right granted by Seller to Purchaser or arising under applicable law, including but not
limited to the defense of any avoidance Claims or the defense of Purchaser's lien priority;


 


25.2 The actual costs
of attorneys' fees and expenses incurred in complying with any subpoena or other legal process in any way relating to Seller. This
provision shall survive termination of this Agreement.


 


25.3 The actual amount
of attorneys' fees which Purchaser may incur in enforcing this Agreement and any documents prepared in connection herewith, or
in connection with any federal or state insolvency proceeding commenced by or against Seller, including those (i) arising out the
automatic stay, (ii) seeking dismissal or conversion of the bankruptcy proceeding or (ii) opposing confirmation of Seller's plan
there under.


 


25.4 Seller and Purchaser
shall be entitled to indemnification and recovery of attorney's fees or costs in respect to any litigation based herein.


 


26. Entire Agreement. No promises
of any kind have been made by Purchaser or any third party to induce Seller to execute this Agreement. No course of dealing, course
of performance or trade usage, and no parole evidence of any nature, shall be used to supplement or modify any terms of this Agreement.


 


27. Choice of Law. This Agreement
and all transactions contemplated hereunder and/or evidenced hereby shall be governed by, construed under, and enforced in accordance
with the internal laws of the Chosen State.


 


28. Jury Trial Waiver. THE PARTIES
HERETO WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR CAUSE OF ACTION ARISING HEREUNDER, OR IN ANY WAY CONNECTED
WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING
IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY FURTHER WAIVES ANY RIGHT TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL
HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED; AND EACH PARTY HEREBY AGREES AND
CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED WITHOUT A JURY.


 


29. Venue; Jurisdiction; Service of Process.


 


29.1 Any suit, action
or proceeding arising hereunder shall, at Purchaser's sole and exclusive discretion, be only instituted or maintained in any court
sitting in the Chosen State and in the county in which Purchaser's chief executive office is located (the "Acceptable Forums").
Seller agrees that the Acceptable Forums are convenient to it, and submits to the jurisdiction of the Acceptable Forums and waives
any and all objections to jurisdiction or venue. Should such proceeding be initiated in any other forum, Seller waives any right
to oppose any motion or application made by Purchaser to transfer such proceeding to an Acceptable Forum.


 


29.2 Seller agrees that
Purchaser may effect service of process upon Seller by regular mail at the address set forth herein or at such other address as
may be reflected in the records of Purchaser, or at the option of Purchaser by service upon Seller's agent for the service of process.


 


30. Assignment. Purchaser may
assign its rights and delegate its duties hereunder. Upon such assignment or delegation, Seller shall be deemed to have attorned
to such assignee and shall owe the same obligations to such assignee and shall accept performance hereunder by such assignee as
if such assignee were Purchaser. If Purchaser wholly assigns this agreement to a new party, Purchaser will first inform Seller
of its intentions no later than 14 days prior to the expected assignment date (the "Assignment Notification Period").
Seller, in its sole discretion, may repurchase all Accounts and terminate this Agreement during the Assignment Notification Period
subject to the terms and condition in this Agreement.


 


Notwithstanding anything
contained herein to the contrary, Seller may not, without Purchaser's prior written consent, assign this Agreement to any corporation
into or with which Seller is merged or consolidated or to an entity which purchases all, or substantially all, of the assets of
Seller.



    	13



    	 



    





31. Miscellaneous Provisions.


 


31.1 This Agreement shall
be deemed to be one of financial accommodation and not assumable by any debtor, trustee or debtor-in-possession in any bankruptcy
proceeding without Purchaser's express written consent and may be immediately suspended in the event a petition in bankruptcy is
filed by or against Seller.


 


31.2 In the event Seller's
principal(s) including, but not limited to its officer(s) or director(s), directly or indirectly, causes to be formed a new entity
or otherwise become associated with any new or existing entity which entity is in a business similar to or competitive with that
of Seller, such entity shall be deemed to have expressly assumed the Obligations due Purchaser under this Agreement. With respect
to any such entity, Purchaser shall be deemed to have been granted Purchaser an irrevocable power of attorney with authority to
file, naming such newly formed or existing entity as Debtor, an initial UCC-l financing statement and to have it filed with any
and all appropriate secretaries of state or other UCC filing offices. Purchaser shall be held harmless by Seller and its principals
and be relieved of any liability as a result of Purchaser's authentication and filing of any such financing statement or the resulting
perfection of its ownership or security interests in such entity's assets. Purchaser shall have the right to notify such entity's
Payors of Purchaser's rights, including without limitation, Purchaser's right to collect all Accounts, and to notify any creditor
of such entity that Purchaser has such rights in such entity's assets.


 


31.3 Seller expressly
authorizes Purchaser to access the internet website systems or otherwise of and/or communicate with any shipping or trucking company
in order to obtain or verify tracking, shipment or delivery status of any Goods regarding a Purchased Account.


 


31.4 Seller's principal(s)
acknowledge that the duty to accurately complete each Schedule of Accounts is fundamental to this Agreement and as such the duty
to accurately complete each Schedule of Account shall at all times remain non-delegable. Each of Seller's principal(s) acknowledge
that he/she shall remain fully responsible for the accuracy of each Schedule of Accounts delivered to Purchaser.


 


31.5 Seller shall fully
complete and execute, as taxpayer, prior to or immediately upon the execution of this Agreement, a form 8821 (Rev. April 2004)
and/or form 4506 (Rev. October 2008) or form 4506-T (Rev. January 2008) issued by the Department of the Treasury, Internal Revenue
Service or such other forms as may be requested by Purchaser, irrevocably authorizing Purchaser to, among other things, inspect
or receive tax information relating to any type of tax, tax form, years or periods or otherwise desired by Purchaser on an ongoing
basis.


 


31.6 Seller will cooperate
with Purchaser in obtaining a control agreement in form and substance satisfactory to Purchaser with respect to the Collateral.


 


32. Counterparts. This Agreement
may be signed in any number of counterparts, each of which shall be an original, with the same effect as if all signatures were
upon the same instrument. Delivery of an executed counterpart of the signature page to this Agreement by facsimile shall be effective
as delivery of a manually executed counterpart ofthis Agreement, and any party delivering such an executed counterpart of the signature
page to this Agreement by facsimile to any other party shall thereafter also promptly deliver a manually executed counterpart of
this Agreement to such other party, provided that the failure to deliver such manually executed counterpart shall not affect the
validity, enforceability, or binding effect of this Agreement.


 


33. Notice.


 


33.1 All notices required
to be given to any party other than Purchaser shall be deemed given upon the first to occur of (i) one day after deposit thereof
in a receptacle under the control of the United States Postal Service, (ii) transmittal by electronic means to a receiver under
the control of such party, or (iii) actual receipt by such party or an employee or agent of such party.


 


33.2 All notices to Purchaser
shall be deemed given upon actual receipt by a responsible officer of Purchaser.


 


33.3 For the purposes
hereof, notices hereunder shall be sent to the following addresses, or to such other addresses as each such party may in writing
hereafter indicate:



    	14



    	 



    

 


	SELLER:		PURCHASER:	
	
        Address:

         
	
        398 Lemon Creek Dr., Suite A

        Walnut, CA 91789
	
        Address:

         
	
        CapFlow Funding Group

        301 Rte 17 North, 8th Floor

        Rutherford, NJ 07070

	Officer:	James Zhang	Officer:	____________
	Fax Number:	(909) 598 6633	Fax Number:	(201) 842-7726


 


34. Pledges and Assignment of Seller's
Accounts Receivable by Purchaser. Upon ten (10) days written notice, Seller acknowledges and understands that Purchaser
may enter into a financial arrangement with one or more lenders ("Lenders"). In connection with such financing, Purchaser
may sell and/or assign its interests in Seller's Accounts to Lenders. Seller hereby consents to Purchaser entering into any such
financial arrangement and Seller further agrees that:


 


34.1 Seller shall have
no rights under the financial arrangement with Lenders and Seller will not look or seek to hold Lenders, or its respective officers,
employees, directors or agents responsible for any of Pm chaser's obligations under this Agreement, and that Purchaser's relationship
with Lenders is completely separate and apart from Seller's relationship with Purchaser. Seller consents to any lien rights and
the granting and enforcing of any security interests that Lenders may have and assert by reason of its purchase and/or assignment
of Seller's Accounts to Lenders pursuant to the financing agreement entered into between Purchaser and Lenders.


 


34.2 Seller agrees that
all covenants, representations and warranties set forth in Sections 12 and 14 of this Agreement shall extend and inure to the benefit
of Lenders and its successors and assigns.


 


34.3 Upon Purchaser or
Lenders' request, Seller shall provide to Lenders any and all information, which Lenders may reasonably request.


 


34.4 Seller consents to
Purchaser sharing with Lenders copies of all financial statements and information regarding Seller delivered or made available
to Purchaser under this Agreement.


 


IN WITNESS WHEREOF, the Parties have executed
this agreement on the day and year first above


written.


 


	SELLER:	PURCHASER:
	 	 
	Sunvalley Solar Inc.	CAPFLOW FUNDING GROUP MANAGERS LLC
	 	
	By: /s/ James Zhang	By: /s/ Timothy Laughin
	Name: James Zhang	Name: Timothy Laughin
	Title: CEO	Title: Managing Member



    	15



    	 



    

 


EXHIBIT 1.7.3


 


 


GENERAL
RELEASE


FOR GOOD AND VALUABLE CONSIDERATION,
the receipt and adequacy of which are hereby acknowledged, the undersigned and each of them (collectively “Releasor”)
hereby forever releases, discharges and acquits CapFlow Funding Group Managers LLC
 (“Releasee”), its parent, directors, shareholders, agents and employees, of and from all claims of every
type, kind, nature, description or character, whether heretofore existing, now existing or hereafter arising, or which could or
may be claimed to exist, of whatever kind or name, whether known or unknown, suspected or unsuspected, liquidated or unliquidated,
each as though fully set forth herein at length, to the extent that they arise out of or are in way connected to or are related
to that certain Factoring and Security Agreement dated ____________, except for instances whereby the Releasee has violated a material
term of this Agreement, and specifically to terms included in Section 3. In the instance where the Releasee has violated a material
term of this Agreement, the Releasor may seek claims or damages from the Releasee only, and not from its parent, directors, shareholders,
agents and employees.


 


Releasor agrees that the matters
released herein are not limited to matters which are known or disclosed, and the Releasor waives any and all rights and benefits
which it now has, or in the future may have.


Releasor acknowledges that
factual matters now unknown to it may have given or may hereafter give rise to Claims which are presently unknown, unanticipated
and unsuspected, and it acknowledges that this Release has been negotiated and agreed upon in light of that realization and that
it nevertheless hereby intends to release, discharge and acquit the Releasee from any such unknown Claims.


 


Acceptance of this Release
shall not be deemed or construed as an admission of liability by any party released.


 


Releasor acknowledges that
either (a) it has had advice of counsel of its own choosing in negotiations for and the preparation of this release, or (b) it
has knowingly determined that such advice is not needed.






DATED: ________________


 


	
         

        Individual Releasor:
 	Entity Releasor:
	 	
	[Name of individual], individually	By:
		Name:
		Title:



    	16



    	 



    

 


EXHIBIT 2.1.1


 


Schedule of Accounts Sold/Bill
of Sale


 


Seller’s Name __________________________________ Schedule
Number ________________


Date __________________, 2011Advance Rate ________________%


 


	Invoice	Invoice	
        Name of

        Account Debtor
	Federal Grant Invoice	Advanced
	Date	Number	Amount	Amount
				 $                              -  	 $                                       -  
				                         -  	                       -  
				                         -  	                       -  
				                         -  	                       -  
				                         -  	                       -  
				                         -  	                       -  
				                         -  	                       -  
				                         -  	                       -  
			Total Amount of Invoices   	 $                      -  	 $                    -  


 


ASSIGNMENT:


 


KNOW ALL MEN BY THESE PRESENTS,
that the undersigned Seller for value received hereby sells, transfers and assigns to CapFlow Funding Group Managers LLC,
a Delaware limited partnership (hereinafter called the “Purchaser”) or an affiliate, its successors and assigns, in
accordance with the provision of that certain Factoring and Security Agreement heretofore duly executed and delivered by the Seller
and duly accepted by the Purchaser, and any amendments thereto (hereinafter called the "Agreement”), each account listed
hereon, and all right, title and interest of the Seller in and to such accounts and in and to all goods, the sale of which gave
rise to such account, including all of the Seller’s right of stoppage in transit, replevin and reclamation as an unpaid vendor.


 


For the purpose of inducing
the Purchaser to purchase such accounts, the Seller and its principals hereby reaffirm Representations, Warranties and Covenants
under the Agreement applicable to such accounts and account debtors.


 


The Seller
and its principals warrant and represent that with respect to each account identified in this Schedule since the last sale of accounts
by the Seller to the Purchaser, no merchandise has been returned or rejected, no defense, dispute, claim, offset or counterclaim
has developed or has been asserted with respect to any account heretofore sold, transferred and assigned by the Seller to the Purchaser,
which has not been or is not contemporaneously being reported in writing by the Seller to the Purchaser.


We, the undersigned, attest that no Event of Default has occurred
or is continuing as defined in the Agreement.


 


[Signature to follow]



    	17



    	 



    

 


Exhibit 14.9


 


DISCLOSED FINANCING
STATEMENTS


 


 


 


East West Bank.


 


 


 


 


 


 


 


 


			_____________________



			Seller’s Principal’s Initials




    	18



    	 



    

EXHIBIT 14.15


 


TRADE NAMES OR ASSUMED NAMES


 



    	19