Exhibit 10.3


 


EXECUTION VERSION


 


COMMERCIAL SECURITY
AGREEMENT


 


	Grantors:	SPORTS
        FIELD HOLDINGS, INC.

        4320
        Winfield Road, Suite 200

        Warrenville,
        IL 60555

         

        FIRSTFORM,
                                         INC.

        4320
        Winfield Road, Suite 200

        Warrenville,
        IL 60555

         
	 	Lender:	
                                         GENLINK CAPITAL, LLC

        1205
        N. Ankeny Blvd., Suite 209

        
        Ankeny, IA 50023



 





THIS
COMMERCIAL SECURITY AGREEMENT dated July 14, 2016, is made and executed between SPORTS FIELD HOLDINGS, INC., a Nevada corporation,
and FirstForm, Inc., a Florida corporation (collectively, the “Grantors)
and GENLINK CAPITAL, LLC, a Delaware limited liability company ("Lender").


 


GRANT
OF SECURITY INTEREST. For valuable consideration, Grantors grant to Lender a security interest in the Collateral to secure the
Indebtedness and agrees that Lender shall have the rights stated in this Agreement with respect to the Collateral, in addition
to all other rights which Lender may have by law.


 


COLLATERAL
DESCRIPTION. The word "Collateral" as used in this Agreement means the following described property, whether now
owned or hereafter acquired, whether now existing or hereafter arising, and wherever located, in which Grantors are giving to
Lender a security interest for the payment of the Indebtedness and performance of all other obligations under the Note and this
Agreement:


 


All
inventory, equipment, accounts (including but not limited to all health-care-insurance receivables), chattel paper, instruments
(including but not limited to all promissory notes), letter-of-credit rights, letters of credit, documents, deposit accounts,
investment property, money, other rights to payment and performance, and general intangibles (including but not limited to all
software and all payment intangibles); all oil, gas and other minerals before extraction; all oil, gas, other minerals and accounts
constituting as-extracted collateral; all fixtures; all timber to be cut; all attachments, accessions, accessories, fittings,
increases, tools, parts, repairs, supplies, and commingled goods relating to the foregoing property, and all additions, replacements
of and substitutions for all or any part of the foregoing property; all insurance refunds relating to the foregoing property;
all good will relating to the foregoing property; all records and data and embedded software relating to the foregoing property,
and all equipment, inventory and software to utilize, create, maintain and process any such records and data on electronic media;
and all supporting obligations relating to the foregoing property; all rents, leases, easements, servitudes, after-acquired property,
improvements, additional lands, contracts, permits, franchises and personal property; all whether now existing or hereafter arising,
whether now owned or hereafter acquired or whether now or hereafter subject to any rights in the foregoing property; and all products
and proceeds (including but not limited to all insurance payments) of or relating to the foregoing property.


 


In
addition, the word "Collateral" also includes all the following, whether now owned or hereafter acquired, whether now
existing or hereafter arising, and wherever located:


 


(A)  All
accessions, attachments, accessories, tools, parts, supplies, replacements of and additions to any of the collateral described
herein, whether added now or later.


(B)  All
products and produce of any of the property described in this Collateral section.


(C)  All
accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sale, lease, or other
disposition of any of the property described in this Collateral section.


(D)  All
proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described
in this Collateral section, and sums due from a third party who has damaged or destroyed the Collateral or from that party's insurer,
whether due to judgment, settlement or other process.


(E)  All
records and data relating to any of the property described in this Collateral section, whether in the form of a writing, photograph,
microfilm, microfiche, or electronic media, together with all of Grantors' rights, title, and interest in and to all computer
software required to utilize, create, maintain, and process any such records or data on electronic media.


 


CROSS-COLLATERALIZATION.
In addition to the Note, this Agreement secures all obligations, debts and liabilities, plus interest thereon, of Grantors to
Lender, or any one or more of them, as well as all claims by Lender against Grantors or any one or more of them, whether now existing
or hereafter arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or
not due, direct or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantors
may be liable individually or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise, and
whether recovery upon such amounts may be or hereafter may become barred by any statute or limitations, and whether the obligation
to repay such amounts may be or hereafter may become otherwise unenforceable.


 


FUTURE
ADVANCES. In addition to the Note, this Agreement secures all future advances made by Lender to Grantors regardless of whether
the advances are made (a) pursuant to a commitment or (b) for the same purposes.


 






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COMMERCIAL SECURITY AGREEMENT


(Continued)


 






 


RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Grantors’ accounts with
Lender (whether checking, savings, or some other account). This includes all accounts Grantors hold jointly with someone else
and all accounts Grantors may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Grantors authorize Lender, to the extent permitted by applicable law, to charge or
setoff all sums owing on the Indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze
all such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.


 


GRANTORS’
REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With respect to the Collateral, Grantors represent and promise
to Lender that:


 


Perfection
of Security Interest. Grantors agree to execute financing statements and to take whatever other actions are requested by Lender
to perfect and continue Lender's security interest in the Collateral. Upon request of Lender, Grantors will deliver to Lender
any and all of the documents evidencing or constituting the Collateral, and Grantors will note Lender's interest upon any and
all chattel paper if not delivered to Lender for possession by Lender. This is a continuing Security Agreement and will continue
in effect even though all or any part of the Indebtedness is paid in full and even though for a period of time Grantors may not
be indebted to Lender.


 


Notices
to Lender. Grantors will promptly notify Lender in writing at Lender's address shown above (or such other addresses as Lender
may designate from time to time) prior to any (1) change in any of the Grantors’ name; (2) change in any of the Grantors’
assumed business name(s); (3) change in the management of any of the Grantors; (4) change in the authorized signer(s); (5) change
in any of the Grantors’ principal office address; (6) change in any of the Grantors’ state of organization; (7) conversion
of any of the Grantors to a new or different type of business entity; or (8) change in any other aspect of any of the Grantors
that directly or indirectly relates to any agreements between Grantors and Lender. No change in any of the Grantors’ name
or state of organization will take effect until after Lender has received notice.


 


No
Violation. The execution and delivery of this Agreement will not violate any law or agreement governing Grantors or to which
any of the Grantors are a party, and its articles of incorporation and bylaws do not prohibit any term or condition of this Agreement.


 


Enforceability
of Collateral. To the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the
Uniform Commercial Code, the Collateral is enforceable in accordance with its terms, is genuine, and fully complies with all applicable
laws and regulations concerning form, content and manner of preparation and execution, and all persons appearing to be obligated
on the Collateral have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At
the time any account becomes subject to a security interest in favor of Lender, the Account shall be a good and valid account
representing an undisputed, bona fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions
or previously shipped or delivered pursuant to a contract of sale, or for services previously performed by Grantors with or for
the account debtor. So long as this Agreement remains in effect, Grantors shall not, without Lender's prior written consent, compromise,
settle, adjust, or extend payment under or with regard to any such accounts. There shall be no setoffs or counterclaims against
any of the Collateral, and no agreement shall have been made under which any deductions or discounts may be claimed concerning
the Collateral except those disclosed to Lender in writing.


 


Location
of the Collateral. Except in the ordinary course of Grantors’ respective businesses, Grantors agree to keep the Collateral
(or to the extent the Collateral consists of intangible property such as accounts or general intangibles, the records concerning
the Collateral) at Grantors’ addresses shown above or at such other locations as are acceptable to Lender. Upon Lender's
request, Grantors will deliver to Lender in form satisfactory to Lender a schedule of real properties and Collateral locations
relating to Grantors’ operations, including without limitation the following: (1) all real property Grantors owns or are
purchasing; (2) all real property Grantors are renting or leasing; (3) all storage facilities Grantors own, rent, lease, or use;
and (4) all other properties where Collateral is or may be located.


 


Removal
of the Collateral. Except in the ordinary course of Grantors’ respective businesses, including the sales of inventory,
Grantors shall not remove the Collateral from its existing location without Lender's prior written consent. To the extent that
the Collateral consists of vehicles, or other titled property, Grantors shall not take or permit any action which would require
application for certificates of title for the vehicles outside the State of Iowa, without Lender's prior written consent. Grantors
shall, whenever requested, advise Lender of the exact location of the Collateral.


 


Transactions
Involving Collateral. Except for inventory sold or accounts collected in the ordinary course of Grantors’ respective
businesses, or as otherwise provided for in this Agreement, Grantors shall not sell, offer to sell, or otherwise transfer or dispose
of the Collateral. While an Event of Default has not occurred under this Agreement, Grantors may sell inventory, but only in the
ordinary course of its business and only to buyers who qualify as a buyer in the ordinary course of business. A sale in the ordinary
course of Grantors’ respective businesses does not include a transfer in partial or total satisfaction of a debt or any
bulk sale. Grantors shall not pledge, mortgage, encumber or otherwise permit the Collateral to be subject to any lien, security
interest, encumbrance, or charge, other than the security interest provided for in this Agreement, without the prior written consent
of Lender. This includes security interests even if junior in right to the security interests granted under this Agreement. Unless
waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender
and shall not be commingled with any other funds; provided however, this requirement shall not constitute consent by Lender to
any sale or other disposition. Upon receipt, Grantors shall immediately deliver any such proceeds to Lender.


 






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COMMERCIAL SECURITY AGREEMENT


(Continued)


 








 


Title.
Grantors represent and warrant to Lender that Grantors hold good and marketable title to the Collateral, free and clear of all
liens and encumbrances except for the lien of this Agreement. The liens granted hereby are not the type of lien referred to in
Chapter 575 of the Iowa Code, as now enacted or hereafter modified, amended or replaced. Grantors, for themselves and all persons
claiming by, through or under Grantors, agree that they claims no lien or right to a lien of the type contemplated by Chapter
575 or any other chapter of the Code of Iowa, or any other common law lien, and further waives all notices and rights pursuant
to said law with respect to the liens hereby granted, and represents and warrants that it is the sole party entitled to do so
and agrees to indemnify and hold harmless Lender from any loss, damage, and costs, including reasonable attorney fees, threatened
or suffered by Lender arising either directly or indirectly as a result of any claim of the applicability of said law to the liens
hereby granted. No financing statement covering any of the Collateral is on file in any public office other than those which reflect
the security interest created by this Agreement or to which Lender has specifically consented. Grantors shall defend Lender's
rights in the Collateral against the claims and demands of all other persons.


 


Repairs
and Maintenance. Grantors agree to keep and maintain, and to cause others to keep and maintain, the Collateral in good order,
repair and condition at all times while this Agreement remains in effect. Grantors further agree to pay when due all claims for
work done on, or services rendered or material furnished in connection with the Collateral so that no lien or encumbrance may
ever attach to or be filed against the Collateral.


 


Inspection
of Collateral. Lender and Lender's designated representatives and agents shall have the right at all reasonable times to examine
and inspect the Collateral wherever located.


 


Taxes,
Assessments and Liens. Grantors will pay when due all taxes, assessments and liens upon the Collateral, its use or operation,
upon this Agreement, upon any promissory note or notes evidencing the Indebtedness, or upon any of the other Related Documents.
Grantors may withhold any such payment or may elect to contest any lien if Grantors are in good faith conducting an appropriate
proceeding to contest the obligation to pay and so long as Lender's interest in the Collateral is not jeopardized in Lender's
sole opinion. If the Collateral is subjected to a lien which is not discharged within fifteen (15) days, Grantors shall deposit
with Lender cash, a sufficient corporate surety bond or other security satisfactory to Lender in an amount adequate to provide
for the discharge of the lien plus any interest, costs, attorneys' fees or other charges that could accrue as a result of foreclosure
or sale of the Collateral. In any contest Grantors shall defend themselves and Lender and shall satisfy any final adverse judgment
before enforcement against the Collateral. Grantors shall name Lender as an additional obligee under any surety bond furnished
in the contest proceedings. Grantors further agree to furnish Lender with evidence that such taxes, assessments, and governmental
and other charges have been paid in full and in a timely manner. Grantors may withhold any such payment or may elect to contest
any lien if Grantors are in good faith conducting an appropriate proceeding to contest the obligation to pay and so long as Lender's
interest in the Collateral is not jeopardized.


 


Compliance
with Governmental Requirements. Grantors shall comply promptly with all laws, ordinances, rules and regulations of all governmental
authorities, now or hereafter in effect, applicable to the ownership, production, disposition, or use of the Collateral, including
all laws or regulations relating to the undue erosion of highly-erodible land or relating to the conversion of wetlands for the
production of an agricultural product or commodity. Grantors may contest in good faith any such law, ordinance or regulation and
withhold compliance during any proceeding, including appropriate appeals, so long as Lender's interest in the Collateral, in Lender's
opinion, is not jeopardized.


 


Hazardous
Substances. Grantors represent and warrant that the Collateral never has been, and never will be so long as this Agreement
remains a lien on the Collateral, used in violation of any Environmental Laws or for the generation, manufacture, storage, transportation,
treatment, disposal, release or threatened release of any Hazardous Substance. The representations and warranties contained herein
are based on Grantors’ due diligence in investigating the Collateral for Hazardous Substances. Grantors hereby (1) release
and waive any future claims against Lender for indemnity or contribution in the event Grantors become liable for cleanup or other
costs under any Environmental Laws, and (2) agree to indemnify and hold harmless Lender against any and all claims and losses
resulting from a breach of this provision of this Agreement. This obligation to indemnify shall survive the payment of the Indebtedness
and the satisfaction of this Agreement.


 


Maintenance
of Casualty Insurance. Grantors shall procure and maintain all risks insurance, including without limitation fire, theft and
liability coverage together with such other insurance as Lender may require with respect to the Collateral, in form, amounts,
coverages and basis reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantors,
upon request of Lender, will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory
to Lender, including stipulations that coverages will not be cancelled or diminished without at least thirty (30) days' prior
written notice to Lender and not including any disclaimer of the insurer's liability for failure to give such a notice. Each insurance
policy also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act,
omission or default of Grantors or any other person. In connection with all policies covering assets in which Lender holds or
is offered a security interest, Grantors will provide Lender with such loss payable or other endorsements as Lender may require.
If Grantors at any time fails to obtain or maintain any insurance as required under this Agreement, Lender may (but shall not
be obligated to) obtain such insurance as Lender deems appropriate, including if Lender so chooses "single interest insurance,"
which will cover only Lender's interest in the Collateral.


 






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COMMERCIAL SECURITY AGREEMENT


(Continued)


 








 





Application
of Insurance Proceeds. Grantors shall promptly notify Lender of any loss or damage to the Collateral. Lender may make proof
of loss if Grantors fail to do so within fifteen (15) days of the casualty. All proceeds of any insurance on the Collateral, including
accrued proceeds thereon, shall be held by Lender as part of the Collateral. If Lender consents to repair or replacement of the
damaged or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure, pay or reimburse Grantors from the proceeds
for the reasonable cost of repair or restoration. If Lender does not consent to repair or replacement of the Collateral, Lender
shall retain a sufficient amount of the proceeds to pay all of the Indebtedness, and shall pay the balance to Grantors. Any proceeds
which have not been disbursed within six (6) months after their receipt and which Grantors have not committed to the repair or
restoration of the Collateral shall be used to prepay the Indebtedness.


 


Insurance
Reserves. Lender may require Grantors to maintain with Lender reserves for payment of insurance premiums, which reserves shall
be created by monthly payments from Grantors of a sum estimated by Lender to be sufficient to produce, at least fifteen (15) days
before the premium due date, amounts at least equal to the insurance premiums to be paid. If fifteen (15) days before payment
is due, the reserve funds are insufficient, Grantors shall upon demand pay any deficiency to Lender. The reserve funds shall be
held by Lender as a general deposit and shall constitute a non-interest-bearing account which Lender may satisfy by payment of
the insurance premiums required to be paid by Grantors as they become due. Lender does not hold the reserve funds in trust for
Grantors, and Lender is not the agent of Grantors for payment of the insurance premiums required to be paid by Grantors. The responsibility
for the payment of premiums shall remain Grantors’ sole responsibility.


 


Insurance
Reports. Grantors, upon request of Lender, shall furnish to Lender reports on each existing policy of insurance showing such
information as Lender may reasonably request including the following: (1) the name of the insurer; (2) the risks insured; (3)
the amount of the policy; (4) the property insured; (5) the then current value on the basis of which insurance has been obtained
and the manner of determining that value; and (6) the expiration date of the policy. In addition, Grantors shall upon request
by Lender (however not more often than annually) have an independent appraiser satisfactory to Lender determine, as applicable,
the cash value or replacement cost of the Collateral.


 


Financing
Statements. Grantors authorize Lender to file a UCC financing statement, or alternatively, a copy of this Agreement to perfect
Lender's security interest. At Lender's request, Grantors additionally agree to sign all other documents that are necessary to
perfect, protect, and continue Lender's security interest in the Property. This includes making sure Lender is shown as the first
and only security interest holder on the title covering the Property. Grantors will pay all filing fees, title transfer fees,
and other fees and costs involved unless prohibited by law or unless Lender is required by law to pay such fees and costs. Grantors
irrevocably appoint Lender to execute financing statements and documents of title in Grantors’ respective names and to execute
all documents necessary to transfer title if there is an Event of Default. Lender may file a copy of this Agreement as a financing
statement. If Grantors change Grantors’ respective names or addresses, or the name or address of any person granting a security
interest under this Agreement changes, Grantors will promptly notify the Lender of such change.


 


GRANTORS’
RIGHT TO POSSESSION AND TO COLLECT ACCOUNTS. Until default and except as otherwise provided below with respect to accounts,
Grantors may have possession of the tangible personal property and beneficial use of all the Collateral and may use it in any
lawful manner not inconsistent with this Agreement or the Related Documents, provided that Grantors’ right to possession
and beneficial use shall not apply to any Collateral where possession of the Collateral by Lender is required by law to perfect
Lender's security interest in such Collateral. Until otherwise notified by Lender, Grantors may collect any of the Collateral
consisting of accounts. If Lender at any time has possession of any Collateral, whether before or after an Event of Default, Lender
shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if Lender takes such action
for that purpose as Grantors shall request or as Lender, in Lender's sole discretion, shall deem appropriate under the circumstances,
but failure to honor any request by Grantors shall not of itself be deemed to be a failure to exercise reasonable care. Lender
shall not be required to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect,
preserve or maintain any security interest given to secure the Indebtedness.


 


LENDER'S
EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender's interest in the Collateral or
if Grantors fail to comply with any provision of this Agreement or any Related Documents, including but not limited to Grantors’
failure to discharge or pay when due any amounts Grantors are required to discharge or pay under this Agreement or any Related
Documents, Lender on Grantors’ behalf may (but shall not be obligated to) take any action that Lender deems appropriate,
including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims, at any
time levied or placed on the Collateral and paying all costs for insuring, maintaining and preserving the Collateral. All such
expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note from the
date incurred or paid by Lender to the date of repayment by Grantors. All such expenses will become a part of the Indebtedness
and, at Lender's option, will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be
payable with any installment payments to become due during either (1) the term of any applicable insurance policy; or (2) the
remaining term of the Note; or (C) be treated as a balloon payment which will be due and payable at the Note's maturity. The Agreement
also will secure payment of these amounts. Such right shall be in addition to all other rights and remedies to which Lender may
be entitled upon the occurrence of an Event of Default.


 


DEFAULT.
Each of the following shall constitute an Event of Default under this Agreement:


 


Payment
Default. Grantors fail to make any payment when due under the Indebtedness. Grantors shall have the right to cure such default
within three (3) days after receiving written notice from Lender demanding cure of such default. If Grantors cure such default
within the specified cure period, Grantors shall be entitled to continue with the Loan as if no default has occurred. If Grantors
fail to cure such default within the specified cure period, Lender may proceed with its rights and remedies under the Loan as
set forth in this Agreement.


 






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COMMERCIAL SECURITY AGREEMENT


(Continued)


 








 





Other
Defaults. Grantors fail to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement
or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained in any
other agreement between Lender and Grantors. Grantors shall have the right to cure such default within seven (7) days after receiving
written notice from Lender demanding cure of such default. If Grantors cure such default within the specified cure period, Grantors
shall be entitled to continue with the Loan as if no default has occurred. If Grantors fail to cure such default within the specified
cure period, Lender may proceed with its rights and remedies under the Loan as set forth in this Agreement.


 


Default
in Favor of Third Parties. Grantors default under any loan, extension of credit, security agreement, purchase or sales agreement,
or any other agreement, in favor of any other creditor or person that may materially affect any of Grantors’ property or
ability to perform Grantors’ obligations under this Agreement or any of the Related Documents. Grantors shall have the right
to cure such default within fourteen (14) days after receiving written notice from Lender demanding cure of such default. If Grantors
cure such default within the specified cure period, Grantors shall be entitled to continue with the Loan as if no default has
occurred. If Grantors fail to cure such default within the specified cure period, Lender may proceed with its rights and remedies
under the Loan as set forth in this Agreement.


 


False
Statements. Any warranty, representation or statement made or furnished to Lender by Grantors or on Grantors’ behalf
under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or
furnished or becomes materially false or misleading at any time thereafter. Grantors shall have the right to cure such default
within fourteen (14) days after receiving written notice from Lender demanding cure of such default. If Grantors cure such default
within the specified cure period, Grantors shall be entitled to continue with the Loan as if no default has occurred. If Grantors
fail to cure such default within the specified cure period, Lender may proceed with its rights and remedies under the Loan as
set forth in this Agreement.


 


Defective
Collateralization. This Agreement or any of the Related Documents ceases to be in full force and effect (including failure
of any collateral document to create a valid and perfected security interest or lien) at any time and for any reason. Grantors
shall have the right to cure such default within fourteen (14) days after receiving written notice from Lender demanding cure
of such default. If Grantors cure such default within the specified cure period, Grantors shall be entitled to continue with the
Loan as if no default has occurred. If Grantors fail to cure such default within the specified cure period, Lender may proceed
with its rights and remedies under the Loan as set forth in this Agreement.


 


Dissolution
or Insolvency. The dissolution of any of the Grantors (regardless of whether election to continue is made) or any other termination
of any of the Grantors’ existence as a going business or the death of any member, the insolvency of any of the Grantors,
the appointment of a receiver for any part of any of the Grantors’ property, any assignment for the benefit of creditors,
any type of creditor workout, or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Grantors.
With respect to any involuntary bankruptcy action against the Grantors, the Grantors shall have a period of sixty (60) days to
cure or effect the rescinding of the involuntary bankruptcy petition.


 


Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of any of the Grantors or by any governmental agency against any collateral
securing the Indebtedness. This includes a garnishment of any of the Grantors’ accounts, including deposit accounts, with
Lender. However, this Event of Default shall not apply if there is a good faith dispute by Grantors as to the validity or reasonableness
of the claim which is the basis of the creditor or forfeiture proceeding and if Grantors give Lender written notice of the creditor
or forfeiture proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount
determined by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.


 


Change
in Ownership/Management; Disposal of Assets. Any of the Borrowers suffer or permit majority control of any of the Borrowers
to be sold, assigned or otherwise transferred, or if any of the Borrowers make or permit a change in its present senior level
management, or if any of the Borrowers merge or consolidate with any company or enterprise, or otherwise disposes of a substantial
portion (as determined by Lender) of its assets or properties.


 


Adverse
Change. A material adverse change occurs in Grantors’ respective financial conditions, or Lender reasonably and in good
faith believes the prospect of payment or performance of the Indebtedness is impaired. Grantors shall have the right to cure such
default within fourteen (14) days after receiving written notice from Lender demanding cure of such default. If Grantors cure
such default within the specified cure period, Grantors shall be entitled to continue with the Loan as if no default has occurred.
If Grantors fail to cure such default within the specified cure period, Lender may proceed with its rights and remedies under
the Loan as set forth in this Agreement.


 


Insecurity.
Lender reasonably and in good faith believes itself insecure. Grantors shall have the right to cure such default within fourteen
(14) days after receiving written notice from Lender demanding cure of such default. If Grantors cure such default within the
specified cure period, Grantors shall be entitled to continue with the Loan as if no default has occurred. If Grantors fail to
cure such default within the specified cure period, Lender may proceed with its rights and remedies under the Loan as set forth
in this Agreement.


 






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COMMERCIAL SECURITY AGREEMENT


(Continued)


 








 





RIGHTS
AND REMEDIES ON DEFAULT. If an Event of Default occurs under this Agreement, Lender shall have all the rights of a secured
party under the Iowa Uniform Commercial Code. In addition and without limitation, Lender may exercise any one or more of the following
rights and remedies:


 


Accelerate
Indebtedness. Lender may declare the entire Indebtedness, including any prepayment penalty which Grantors would be required
to pay, immediately due and payable, without notice of any kind to Grantors.


 


Assemble
Collateral. Lender may require Grantors to deliver to Lender all or any portion of the Collateral and any and all certificates
of title and other documents relating to the Collateral. Lender may require Grantors to assemble the Collateral and make it available
to Lender at a place to be designated by Lender. Lender also shall have full power to enter upon the property of Grantors to take
possession of and remove the Collateral. If the Collateral contains other goods not covered by this Agreement at the time of repossession,
Grantors agree Lender may take such other goods, provided that Lender makes reasonable efforts to return them to Grantors after
repossession.


 


Sell
the Collateral. Lender shall have full power to sell, lease, transfer, or otherwise deal with the Collateral or proceeds thereof
in Lender's own name or that of Grantors. Lender may sell the Collateral at public auction or private sale. Unless the Collateral
threatens to decline speedily in value or is of a type customarily sold on a recognized market, Lender will give Grantors, and
other persons as required by law, reasonable notice of the time and place of any public sale, or the time after which any private
sale or any other disposition of the Collateral is to be made. However, no notice need be provided to any person who, after Event
of Default occurs, enters into and authenticates an agreement waiving that person's right to notification of sale. The requirements
of reasonable notice shall be met if such notice is given at least ten (10) days before the time of the sate or disposition. All
expenses relating to the disposition of the Collateral, including without limitation the expenses of retaking, holding, insuring,
preparing for sale and selling the Collateral, shall become a part of the Indebtedness secured by this Agreement and shall be
payable on demand, with interest at the Note rate from date of expenditure until repaid.


 


Appoint
Receiver. Lender shall have the right to have a receiver appointed to take possession of all or any part of the Collateral,
with the power to protect and preserve the Collateral, to operate the Collateral preceding foreclosure or sale, and to collect
the Rents from the Collateral and apply the proceeds, over and above the cost of the receivership, against the Indebtedness. The
receiver may serve without bond if permitted by law. Lender's right to the appointment of a receiver shall exist whether or not
the apparent value of the Collateral exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify
a person from serving as a receiver.


 


Collect
Revenues, Apply Accounts. Lender, either itself or through a receiver, may collect the payments, rents, income, and revenues
from the Collateral. Lender may at any time in Lender's discretion transfer any Collateral into Lender's own name or that of Lender's
nominee and receive the payments, rents, income, and revenues therefrom and hold the same as security for the Indebtedness or
apply it to payment of the Indebtedness in such order of preference as Lender may determine. Insofar as the Collateral consists
of accounts, general intangibles, insurance policies, instruments, chattel paper, choses in action, or similar property, Lender
may demand, collect, receipt for, settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender may determine,
whether or not Indebtedness or Collateral is then due. For these purposes, Lender may, on behalf of and in the name of Grantors,
receive, open and dispose of mail addressed to Grantors; change any address to which mail and payments are to be sent; and endorse
notes, checks, drafts, money orders, documents of title, instruments and items pertaining to payment, shipment, or storage of
any Collateral. To facilitate collection, Lender may notify account debtors and obligors on any Collateral to make payments directly
to Lender.


 


Obtain
Deficiency. If Lender chooses to sell any or all of the Collateral, Lender may obtain a judgment against Grantors for any
deficiency remaining on the Indebtedness due to Lender after application of all amounts received from the exercise of the rights
provided in this Agreement. Grantors shall be liable for a deficiency even if the transaction described in this subsection is
a sale of accounts or chattel paper.


 


Other
Rights and Remedies. Lender shall have all the rights and remedies of a secured creditor under the provisions of the Iowa
Uniform Commercial Code, as may be amended from time to time. In addition, Lender shall have and may exercise any or all other
rights and remedies it may have available at law, in equity, or otherwise.


 


Election
of Remedies. Except as may be prohibited by applicable law, all of Lender's rights and remedies, whether evidenced by this
Agreement, the Related Documents, or by any other writing, shall be cumulative and may be exercised singularly or concurrently.
Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or
to take action to perform an obligation of Grantors under this Agreement, after Grantors’ failure to perform, shall not
affect Lender's right to declare a default and exercise its remedies.


 






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COMMERCIAL SECURITY AGREEMENT


(Continued)


 








 





MISCELLANEOUS
PROVISIONS. The following miscellaneous provisions are a part of this Agreement:


 


Amendments.
This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as
to the matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in
writing and signed by the party or parties sought to be charged or bound by the alteration or amendment.


 


Attorneys'
Fees; Expenses. Grantors agree to pay upon demand all of Lender's costs and expenses, including Lender's reasonable attorneys'
fees and Lender's legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone
else to help enforce this Agreement, and Grantors shall pay the costs and expenses of such enforcement. Costs and expenses include
Lender's attorneys' fees and legal expenses whether or not there is a lawsuit, including attorneys' fees and legal expenses for
bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. Grantors also shall pay all court costs and such additional fees as may be directed by the
court.


 


Caption
Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define
the provisions of this Agreement.


 


Governing
Law. This Agreement will be governed by, construed and enforced in accordance with federal law and the laws of the State of Iowa.
This Agreement has been accepted by Lender in the State of Iowa.


 


Choice
of Venue. If there is a lawsuit, Grantors agree upon Lender's request to submit to the jurisdiction of the courts of POLK
County, State of Iowa, except to the extent otherwise required by the laws of the jurisdiction where the Collateral is located.


 


No
Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in
writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of
such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver
of Lender's right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No prior
waiver by Lender, nor any course of dealing between Lender and Grantors, shall constitute a waiver of any of Lender's rights or
of any of Grantors’ obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement,
the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such
consent is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.


 


Notices.
Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered,
when actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight
courier, or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid,
directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this
Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party's
address. For notice purposes, Grantors agree to keep Lender informed at all times of Grantors’ current address. Unless otherwise
provided or required by law, if there is more than one Grantor, any notice given by Lender to any of the Grantors is deemed to
be notice given to all Grantors.


 


Power
of Attorney. Grantors hereby appoint Lender as Grantors’ irrevocable attorney-in-fact for the purpose of executing any
documents necessary to perfect, amend, or to continue the security interest granted in this Agreement or to demand termination
of filings of other secured parties. Lender may at any time, and without further authorization from Grantors, file a carbon, photographic
or other reproduction of any financing statement or of this Agreement for use as a financing statement. Grantors will reimburse
Lender for all expenses for the perfection and the continuation of the perfection of Lender's security interest in the Collateral.


 


Severability.
If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to
any circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance.
If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending
provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of
any other provision of this Agreement.


 


Successors
and Assigns. Subject to any limitations stated in this Agreement on transfer of Grantors’ interest, this Agreement shall
be binding upon and inure to the benefit of the parties, their successors and assigns. If ownership of the Collateral becomes
vested in a person other than Grantors, Lender, without notice to Grantors, may deal with Grantors’ successors with reference
to this Agreement and the Indebtedness by way of forbearance or extension without releasing Grantors from the obligations of this
Agreement or liability under the Indebtedness.


 


Survival
of Representations and Warranties. All representations, warranties, and agreements made by Grantors in this Agreement shall
survive the execution and delivery of this Agreement, shall be continuing in nature, and shall remain in full force and effect
until such time as Grantors’ Indebtedness shall be paid in full.


 


Time
is of the Essence. Time is of the essence in the performance of this Agreement.


 


Waive
Jury. All parties to this Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought
by any party against any other party.


 






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COMMERCIAL SECURITY AGREEMENT


(Continued)


 








 





DEFINITIONS.
The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically
stated to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words
and terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require.
Words and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial
Code:


 


Agreement.
The word "Agreement" means this Commercial Security Agreement, as this Commercial Security Agreement may be amended
or modified from time to time, together with all exhibits and schedules attached to this Commercial Security Agreement from time
to time.


 


Borrowers.
The word "Borrowers" means SPORTS FIELD HOLDINGS, INC., a Nevada corporation, and FirstForm,
Inc., a Florida corporation, and includes all co-signers and co-makers signing the Note and all their successors and assigns.


 


Collateral.
The word "Collateral" means all of Grantors’ right, title and interest in and to all the Collateral as described
in the Collateral Description section of this Agreement.


 


Default.
The word "Default" means the Default set forth in this Agreement in the section titled "Default".


 


Environmental
Laws. The words "Environmental Laws" mean any and all state, federal and local statutes, regulations and ordinances
relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. ("CERCLA"), the Superfund Amendments
and Reauthorization Act of 1986, Pub. L. No. 99-499 ("SARA"), the Hazardous Materials Transportation Act, 49 U.S.C.
Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state
or federal laws, rules, or regulations adopted pursuant thereto.


 


Event
of Default. The words "Event of Default" mean any of the events of default set forth in this Agreement in the default
section of this Agreement.


 


Grantors.
The word "Grantors" means SPORTS FIELD HOLDINGS, INC., a Nevada corporation, and FirstForm,
Inc., a Florida corporation.


 


Hazardous
Substances. The words "Hazardous Substances" mean materials that, because of their quantity, concentration or physical,
chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when
improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words "Hazardous
Substances" are used in their very broadest sense and include without limitation any and all hazardous or toxic substances,
materials or waste as defined by or listed under the Environmental Laws. The term "Hazardous Substances" also includes,
without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.


 


Indebtedness.
The word "Indebtedness" means the indebtedness evidenced by the Note or Related Documents, including all principal
and interest together with all other indebtedness and costs and expenses for which Borrowers or Grantors are responsible under
this Agreement or under any of the Related Documents. Specifically, without limitation, Indebtedness includes the future advances
set forth in the Future Advances provision, together with all interest thereon and all amounts that may be indirectly secured
by the Cross-Collateralization provision of this Agreement.


 


Lender.
The word "Lender" means GENLINK CAPITAL, LLC, its successors and assigns.


 


Note.
The word "Note" means the Note executed by the Borrowers in the principal amount of $1,000,000.00 dated July 14,
2016, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for
the note or credit agreement.


 


Property.
The word "Property" means all of Grantors’ rights, title and interest in and to all the Property as described
in the "Collateral Description" section of this Agreement.


 


Related
Documents. The words "Related Documents" mean all promissory notes, credit agreements, loan agreements, environmental
agreements, guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments,
agreements and documents, whether now or hereafter existing, executed in connection with the Indebtedness.


 


GRANTORS
ACKNOWLEDGE RECEIPT OF A COMPLETED COPY OF THIS COMMERCIAL SECURITY AGREEMENT AND ALL OTHER DOCUMENTS RELATING TO THIS DEBT.


 


GRANTORS
HAVE READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL SECURITY AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED
JULY 14, 2016.




 






    	 	Page 8	 



     


    

 


COMMERCIAL SECURITY AGREEMENT


(Continued)


 








 








IMPORTANT:
READ BEFORE SIGNING. THE TERMS OF THIS AGREEMENT SHOULD BE READ CAREFULLY BECAUSE ONLY THOSE TERMS IN WRITING ARE ENFORCEABLE.
NO OTHER TERMS OR ORAL PROMISES NOT CONTAINED IN THIS WRITTEN CONTRACT MAY BE LEGALLY ENFORCED. YOU MAY CHANGE THE TERMS OF THIS
AGREEMENT ONLY BY ANOTHER WRITTEN AGREEMENT.


 


GRANTORS:




 


SPORTS
FIELD HOLDINGS, INC.


 


	By	/s/
    Jeromy Olson	 
	 	Jeromy
    Olson, its CEO	 


 


FIRSTFORM,
INC.


 


	By	/s/
    Jeromy Olson	 
	 	Jeromy
    Olson, its CEO	 


 


 


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