Document:

Exhibit 10.5

 

 

 

 

 

 

 

 

 

 

MANAGEMENT SERVICES AGREEMENT

 

BY AND BETWEEN

 

1847 ASIEN INC.

 

AND

 

1847 PARTNERS LLC

 

Dated as of May 28, 2020

 

 

 

 

 

 

 

     

     

    

 

MANAGEMENT SERVICES AGREEMENT

 

MANAGEMENT SERVICES
AGREEMENT (as amended, revised, supplemented or otherwise modified from time to time, this “Agreement”),
dated as of May 28, 2020, by and between 1847 ASIEN INC., a Delaware corporation (the “Company”), and
1847 PARTNERS LLC, a Delaware limited liability company (the “Manager”). Each party hereto shall be referred
to as, individually, a “Party” and, collectively, the “Parties.”

 

BACKGROUND

 

The Board of Directors
of the Company has determined that it would be in the best interests of the Company to appoint the Manager to perform the Services
(as such term is defined herein) and, therefore, the Company has agreed to appoint the Manager to perform the Services on the terms
and subject to the conditions set forth herein. The Manager has agreed to act as Manager and to perform the Services on the terms
and subject to the conditions set forth herein.  

 

The Manager also acts
as an external manager for 1847 Holdings LLC (the “Parent”), the Company’s parent entity, pursuant
to the Management Services Agreement by and between the Manager and the Parent, dated as of April 15, 2013, as amended (the “Parent
MSA”). This Agreement is an Offsetting Management Services Agreement as defined and referenced in the Parent MSA. 

 

AGREEMENT

 

NOW, THEREFORE,
in consideration of the mutual covenants, representations, warranties and agreements contained herein, and of other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby,
the Parties hereto agree as follows:

 

ARTICLE
I

 

DEFINITIONS

 

For all purposes of
this Agreement, except as otherwise expressly provided or unless the context otherwise requires: the terms defined in this Article
have the meanings assigned to them in this Article and include the plural as well as the singular; any reference to an “Article,”
“Section” or an “Exhibit” refers to an Article, Section or an Exhibit, as the case may be, of this Agreement;
and the words “herein,” “hereinafter,” “hereof,” “hereto” and “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular Article, Section or other subdivision:

 

“Affiliate”
means, with respect to any Person, (i) any Person directly or indirectly controlling, controlled by or under common control with
such Person or (ii) any officer, director, general member, member or trustee of such Person. For purposes of this definition, the
terms “controlling,” “controlled by” or “under common control with” shall mean, with respect
to any Persons, the possession, direct or indirect, of the power to direct or cause the direction of the management and policies
of a Person, whether through the ownership of voting securities, by contract or otherwise, or the power to elect at least 50% of
the directors, managers, general members, or Persons exercising similar authority with respect to such Person.

 

    1

     

    

 

“Agreement”
has the meaning set forth in the preamble of this Agreement.

 

“Board
of Directors” means the Board of Directors of the Company or any committee thereof that has been duly authorized
by the Board of Directors to make a decision on the matter in question or bind the Company as to the matter in question.

 

“Business
Day” means any day other than a Saturday, a Sunday or a day on which banks in the City of New York are required,
permitted or authorized, by applicable law or executive order, to be closed for regular banking business.

 

“Commencement
Date” means the date of this Agreement.

 

“Company”
has the meaning set forth in the preamble of this Agreement.

 

“Company
Information” means any information concerning the Company or any of the Subsidiaries of the Company and their respective
financial condition, business or operations that (i) relates to earnings, (ii) is competitively sensitive, (iii) relates to trade
secrets, (iv) is proprietary or (v) is similar to any of the foregoing information.

 

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

 

“Federal
Securities Laws” means, collectively, the Securities Act, the Exchange Act and the rules and regulations promulgated
thereunder.

 

“Fiscal
Quarter” means each fiscal quarter of the Company for purposes of the Parent’s reporting obligations under
the Exchange Act.

 

“Fiscal
Year” means each fiscal year of the Company for purposes of the Parent’s reporting obligations under the Exchange
Act.

 

“GAAP”
means generally accepted accounting principles in effect in the United States, consistently applied.

 

“Gross
Income” has the meaning set forth in Section 61(a) of the Internal Revenue Code of 1986, as amended.

 

“Incur”
means, with respect to any Indebtedness or other obligation of a Person, to create, issue, acquire (by conversion, exchange or
otherwise), assume, suffer, guarantee or otherwise become liable in respect of such Indebtedness or other obligation.

 

    2

     

    

 

“Indebtedness”
means, with respect to any Person, (i) any liability for borrowed money, or under any reimbursement obligation relating to a letter
of credit, (ii) all indebtedness (including bond, note, debenture, purchase money obligation or similar instrument) for the acquisition
of any businesses, properties or assets of any kind (other than property, including inventory, and services purchased, trade payables,
other expenses accruals and deferred compensation items arising in the Ordinary Course of Business), (iii) all obligations under
leases that have been or should be, in accordance with GAAP, recorded as capital leases, (iv) any liabilities of others described
in the preceding clauses (i) to (iii) (inclusive) that such Person has guaranteed or for which such Person is otherwise legally
obligated, and (without duplication) any amendment, supplement, modification, deferral, renewal, extension or refunding of any
liability of the types referred to in clauses (i) through (iv) above.

 

“Indemnified
Parties” has the meaning set forth in Article IX hereof.

 

“Losses”
has the meaning set forth in Article IX hereof.

 

“Management
Fee” has the meaning set forth in Section 7.1(a) hereof.

 

“Management
Fee Payment Date” means the first Business Day of each Fiscal Quarter or, in the case of the Fiscal Quarter in which
this Agreement is terminated, the Termination Date.

 

“Manager”
has the meaning set forth in the preamble of this Agreement.

 

“Non-Critical
Services” means any Services other than the Services for which the Manager was engaged by the Company in light of
the experience and expertise of the employees of the Manager.

 

“Ordinary
Course of Business” means, with respect to any Person, an action taken by such Person if such action is (i) consistent
with the past practices of such Person and is taken in the normal day-to-day business or operations of such Person and (ii) which
is not required to be specifically authorized or approved by the board of directors of such Person.

 

“Parent”
has the meaning set forth in the recitals to this Agreement.

 

“Parent
Management Fee” has the meaning set forth in Section 7.1(a) hereof.

 

“Parent
MSA” has the meaning set forth in the recitals to this Agreement.

 

“Party”
and “Parties” have the meaning set forth in the preamble of this Agreement.

 

“Person”
means any individual, company (whether general or limited), limited liability company, corporation, trust, estate, association,
nominee or other entity.

 

“Securities
Act” means the Securities Act of 1933, as amended.

 

“Services”
has the meaning set forth in Section 3.1(b) hereof.

 

“Subsidiary”
means, with respect to any Person, any corporation, company, joint venture, limited liability company, association or other entity
in which such Person owns, directly or indirectly, more than 50% of the outstanding voting equity securities or interests, the
holders of which are generally entitled to vote for the election of the board of directors or other governing body of such entity.

 

“Termination
Date” means the date upon which this Agreement is terminated pursuant Article VIII hereof.

 

    3

     

    

 

ARTICLE
II

 

APPOINTMENT OF THE MANAGER

 

Section 2.1 Appointment

 

The Company hereby
agrees to, and hereby does, appoint the Manager to perform the Services as set forth in Section 3.1 herein and in accordance with
the terms and conditions of this Agreement.

 

Section 2.2 Term

 

The Manager shall provide
Services to the Company from the Commencement Date until the termination of this Agreement in accordance with Article VIII hereof.

 

ARTICLE
III

 

OBLIGATIONS OF THE PARTIES

 

Section 3.1 Obligations
of the Manager

 

(a) Subject
always to the oversight and supervision of the Board of Directors and the terms and conditions of this Agreement, the Manager shall
during the term of this Agreement perform the Services as set forth in Section 3.1(b) below and comply with the operational objectives
and business plans of the Company in existence from time to time. The Company shall promptly provide the Manager with all stated
operational objectives and business plans of the Company approved by the Board of Directors and any other available information
reasonably requested by the Manager.

 

(b) The
Manager agrees and covenants that it shall perform, or cause to be performed, the following services hereunder (as may be modified
from time to time pursuant to Section 3.3 hereof, the “Services”):

 

(i) conduct
general and administrative supervision and oversight of the Company’s day-to-day business and operations, including, but
not limited to, recruiting and hiring of personnel, administration of personnel and personnel benefits, development of administrative
policies and procedures, establishment and management of banking services, managing and arranging for the maintaining of liability
insurance, arranging for equipment rental, maintenance of all necessary permits and licenses, acquisition of any additional licenses
and permits that become necessary, participation in risk management policies and procedures; and

 

(ii) oversee
and consult with respect to the Company’s business and operational strategies, the implementation of such strategies and
the evaluation of such strategies, including, but not limited to, strategies with respect to capital expenditure and expansion
programs, acquisitions or dispositions and product or service lines.

 

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(c) In
connection with the performance of the Services under this Agreement, the Manager shall have all necessary power and authority
to perform, or cause to be performed, such Services on behalf of the Company.

 

(d) In
connection with the performance of its obligations under this Agreement, the Manager is not permitted to engage in any activities
that would cause it to become an “investment adviser” as defined in Section 202(a)(11) of the Investment Advisers Act
of 1940, as amended, or any successor provision thereto.

 

(e) While
the Manager is providing the Services under this Agreement, the Manager shall also be permitted to provide services, including
services similar to the Services covered hereby, to other Persons, including Affiliates of the Manager. This Agreement and the
Manager's obligation to provide the Services under this Agreement shall not create an exclusive relationship between the Manager
and its Affiliates, on the one hand, and the Company and its Subsidiaries, on the other.

 

Section 3.2 Obligations
of the Company

 

(a) The
Company shall, and the Company shall cause its Subsidiaries to, do all things reasonably necessary on their part as requested by
the Manager consistent with the terms of this Agreement to enable the Company to fulfill its obligations under this Agreement.

 

(b) The
Company shall, and the Company shall cause its Subsidiaries to, take reasonable steps to ensure that:

 

(i) the
officers and employees of the Company and its Subsidiaries, as the case may be, act in accordance with the terms of this Agreement
and the reasonable directions of the Manager in fulfilling the Manager’s obligations hereunder and allowing the Manager to
exercise its powers and rights hereunder; and

 

(ii) the
Company and its Subsidiaries provide to the Manager alt reports (including monthly management reports and all other relevant reports)
that the Manager may reasonably require and on such dates as the Manager may reasonably require.

 

Section 3.3 Change of Services

 

(a) The
Company and the Manager shall have the right at any time during the term of this Agreement to change the Services provided by the
Manager and such changes shall in no way otherwise affect the rights or obligations of any Party hereunder.

 

(b) Any
change in the Services shall be authorized in writing and evidenced by an amendment to this Agreement, as provided in Section 12.9
hereof. Unless otherwise agreed in writing, the provisions of this Agreement shall apply to all changes in the Services.

 

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ARTICLE
IV

 

POWERS OF THE MANAGER

 

Section 4.1 Powers of the
Manager

 

(a) The
Manager shall have no power to enter into any contract for or on behalf of the Company or otherwise subject it to any obligation,
such power to be the sole right and obligation of the Company, acting through its Board of Directors and/or the Company’s
officers.

 

(b) Subject
to Section 4.2 and for purposes other than to delegate its duties and powers to perform the Services hereunder, the Manager shall
have the power to engage any agents (including real estate agents and managing agents), valuers, contractors and advisors (including
operational, accounting, financial, tax and legal advisors) that it deems necessary or desirable in connection with the performance
of its obligations hereunder, which costs therefor shall be subject to reimbursement in accordance with Section 7.2 hereto.

 

Section 4.2 Delegation

 

The Manager may delegate
or appoint:

 

(a) Any
of its Affiliates as its agent, at its own cost and expense, to perform any or all of the Services hereunder; or

 

(b) Any
Person, whether or not an Affiliate of the Manager, as its agent, at its own cost and expense, to perform those Services hereunder
which, in the sole discretion of the Manager, are Non-Critical Services; provided, however, that, in each case, the Manager
shall not be relieved of any of its obligations or duties owed to the Company hereunder as a result of such delegation. The Manager
shall be permitted to share Company Infom1ation with its appointed agents subject to appropriate, reasonable and customary confidentiality
arrangements. For the avoidance of doubt, any reference to Manager herein shall include its delegates or appointees pursuant to
this Section 4.2.

 

Section 4.3 Manager’s
Obligations, Duties and Powers Exclusive

 

The Company agrees
that during the term of this Agreement, the obligations, duties and powers imposed on and granted to the Manager under Article
III and this Article IV are to be performed or held exclusively by the Manager, subject to Section 4.2 hereof, and the Company
shall not, either directly or indirectly, through its employees, Board of Directors or any other Person, as the case may be, perfo1m
any of the Services except in circumstances where it is necessary to do so to comply with applicable law or as otherwise agreed
by the Manager.

 

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ARTICLE
V

 

INSPECTION OF RECORDS

 

Section 5.1 Books and Records
of the Company

 

At all reasonable times
and on reasonable notice, the Manager and any Person authorized by the Manager shall have access to, and the right to inspect,
for any reasonable purpose, during the term of this Agreement and for a period of five (5) years after termination hereof, the
books, records and data stored in computers and all documentation of the Company pertaining to all Services performed, or to be
performed, by the Manager or the Management Fee paid, or to be paid, by the Company to the Manager, in each case, hereunder. There
shall be no cost or expense charged by any Party to another Party pursuant to the exercise of any right under this Section 5.1.

 

Section 5.2 Books and Records
of the Manager

 

At all reasonable times
and on reasonable notice, the Company and any Person authorized by the Company shall have access to, and the right to inspect the
books, records and data stored in computers and all documentation of the Manager pertaining to all Services performed, or to be
performed, by the Manager or the Management Fee paid, or to be paid, by the Company to the Manager, in each case, hereunder. There
shall be no cost or expense charged by any Party to another Party pursuant to the exercise of any right under this Section 5.2.

 

ARTICLE
VI

 

AUTHORITY OF THE COMPANY AND THE MANAGER

 

Each Party represents
and warrants to the other that it is duly authorized with full power and authority to execute, deliver and perform its obligations
and duties under this Agreement. The Company represents and warrants that the engagement of the Manager has been duly authorized
by the Board of Directors and is in accordance with all governing documents of the Company.

 

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ARTICLE
VII

 

MANAGEMENT FEE; EXPENSES

 

Section 7.1 Management
Fee

 

(a) Subject
to the terms and conditions set forth in this Section 7.1, for the term of this Agreement, as payment to the Manager for performing
Services hereunder during any Fiscal Quarter or any part thereof, the Company shall pay a quarterly management fee (the “Management
Fee”) to the Manager on each Management Fee Payment Date equal to the greater of $75,000 or 2% of Adjusted Net Assets
(as defined in the Parent MSA) of the Company; provided, however, that (i) with respect to the Fiscal Quarter in which the
Commencement Date occurs, the Management Fee with respect to such Fiscal Quarter or part thereof shall be equal to the product
of (x) the Management Fee, multiplied by (y) a fraction, the numerator of which is the number of days from and including
the Commencement Date to and including the last day of such Fiscal Quarter and the denominator of which is the number of days in
such Fiscal Quarter, (ii) with respect to the Fiscal Quarter in which this Agreement is terminated, the Management Fee with respect
to such Fiscal Quarter or part thereof shall be equal to the product of (x) the Management Fee, multiplied by (y)
a fraction, the numerator of which is the number of days from and including the first day of such Fiscal Quarter to but excluding
the date upon which this Agreement is terminated and the denominator of which is the number of days in such Fiscal Quarter, (iii)
if the aggregate amount of Management Fees paid or to be paid by the Company, together with all other management fees paid or to
be paid by all other Subsidiaries of the Parent to the Manager, in each case, with respect to any Fiscal Year exceeds, or is expected
to exceed, 9.5% of the Parent’s Gross Income with respect to such Fiscal Year, then the Manager agrees that the Management
Fee to be paid by the Company for any remaining Fiscal Quarters in such Fiscal Year shall be reduced, on a pro rata basis
determined by reference to the management fees to be paid to the Manager by all of the Subsidiaries of the Parent, until the aggregate
amount of the Management Fee paid or to be paid by the Company, together with all other management fees paid or to be paid by all
other Subsidiaries of the Parent to the Manager, in each case, with respect to such Fiscal Year, does not exceed 9.5% of the Parent’s
Gross Income with respect to such Fiscal Year, and (iv) if the aggregate amount the Management Fee paid or to be paid by the Company,
together with all other management fees paid or to be paid by all other Subsidiaries of the Parent to the Manager, in each case,
with respect to any Fiscal Quarter exceeds, or is expected to exceed, the aggregate amount of the management fee (before any adjustment
thereto) calculated and payable under the Parent MSA (the “Parent Management Fee”) with respect to such
Fiscal Quarter, then the Manager agrees that the Management Fee to be paid by the Company for such Fiscal Quarter shall be reduced,
on a pro rata basis, until the aggregate amount of the Management Fee paid or to be paid by the Company, together with all
other management fees paid or to be paid by all other Subsidiaries of the Parent to the Manager, in each case, with respect to
such Fiscal Quarter, does not exceed the Parent Management Fee calculated and payable with respect to such Fiscal Quarter. The
Management Fee shall be paid in U.S. dollars by wire transfer in immediately available funds to an account or accounts designated
by the Manager from time to time.

 

(b) If
the Company does not have sufficient liquid assets to timely pay the entire amount of the Management Fee due on any Management
Fee Payment Date, the Company shall liquidate assets or Incur Indebtedness in order to pay such Management Fee in full on such
Management Fee Payment Date; provided, however, that if the Management Fee due on any Management Fee Payment Date cannot
be paid by the Company as the result of subordination provisions or other restrictions contained in financing or other agreements
between the Company and its senior lenders or the senior lenders of any of its affiliates, then the Management Fee shall accrue
and be paid as soon as the Company is able to pay the Management Fee without violation such subordination provision or other restrictions.

 

Section 7.2 Reimbursement
of Expenses

 

(a) Subject
to Section 7.2(b), the Company shall reimburse the Manager for all costs and expenses of the Company, including all out-of-pocket
costs and expenses, that are actually Incurred by the Manager or its Affiliates on behalf of the Company in connection with performing
Services hereunder, and all costs and expenses the reimbursement of which is specifically approved by the Board of Directors.

 

(b) Notwithstanding
the foregoing or anything else to the contrary herein, neither the Company nor any Subsidiary of the Company shall be obligated
or responsible for reimbursing or otherwise paying for any costs or expenses relating to the Manager's overhead or to the Manager’s
conduct or maintenance of its business and operations as a provider of management services.

 

(c) Any
such reimbursement shall be made upon demand by the Manager in U.S. dollars by wire transfer in immediately available funds to
an account or accounts designated by the Manager from time to time.

 

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ARTICLE
VIII

 

TERMINATION; RESIGNATION AND REMOVAL
OF THE MANAGER

 

Section 8.1 Resignation
by the Manager

 

The Manager may resign
at any time upon sixty (60) days’ prior written notice to the Company, which right shall not be contingent upon the finding
of a replacement manager. However, if the Manager resigns, until the date on which the resignation becomes effective, the Manager
shall, upon request of the Board of Directors, use reasonable efforts to assist the Board of Directors to find a replacement manager
at no cost and expense to the Company.

 

Section 8.2 Removal of
the Manager

 

The Manager may be
removed by the Company at any time upon sixty (60) days’ prior written notice to the Manager, which right shall not be contingent
upon the finding of a replacement manager.

 

Section 8.3 Termination

 

Subject to Section
12.4, this Agreement shall terminate upon the effective date of the resignation or removal of the Manager in accordance with Section
8.1 or Section 8.2 hereof.

 

Section 8.4 Directions

 

After a written notice
of termination has been given under this Article VIII, the Company may direct the Manager to undertake any actions necessary to
transfer any aspect of the ownership or control of the assets of the Company to the Company or to any nominee of the Company and
to do all other things necessary to bring the appointment of the Manager to an end, and the Manager shall comply with all such
reasonable directions. 1n addition, the Manager shall, at the Company’s expense, deliver to any new manager or the Company
any books or records held by the Manager under this Agreement and shall execute and deliver such instruments and do such things
as may reasonably be required to permit new management of the Company to effectively assume its responsibilities.

 

Section 8.5 Payments Upon
Termination

 

Notwithstanding anything
in this Agreement to the contrary, the fees, costs and expenses payable to the Manager pursuant to Article VII hereof shall be
payable to the Manager upon, and with respect to, the termination of this Agreement pursuant to this Article VIII. All payments
made pursuant to this Section 8.5 shall be made in accordance with Article VII hereof.

 

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ARTICLE
IX

 

INDEMNITY

 

The Company shall indemnify,
reimburse, defend and hold harmless the Manager and its Affiliates and their respective successors and permitted assigns, together
with their respective employees, officers, members, managers, directors, agents and representatives (collectively the “Indemnified
Parties”), from and against all losses (including lost profits), costs, damages, injuries, taxes, penalties, interests,
expenses, obligations, claims and liabilities joint or severable) of any kind or nature whatsoever (collectively “Losses”)
that are Incurred by such Indemnified Parties in connection with, relating to or arising out of (i) the breach of any term or condition
of this Agreement, or (ii) the performance of any Services hereunder; provided, however, that the Company shall not be obligated
to indemnify, reimburse, defend or hold harmless any Indemnified Party for any Losses Incurred, by such Indemnified Party in connection
with, relating to or arising out of:

 

(a) a
breach by such Indemnified Party of this Agreement;

 

(b) the
gross negligence, willful misconduct, bad faith or reckless disregard of such Indemnified Party in the performance of any Services
hereunder; or

 

(c) fraudulent
or dishonest acts of such Indemnified Party with respect to the Company or any of its Subsidiaries.

 

The rights of any Indemnified
Party referred to above shall be in addition to any rights that such Indemnified Party shall otherwise have at law or in equity.

 

Without the prior written
consent of the Company, no Indemnified Party shall settle, compromise or consent to the entry of any judgment in, or otherwise
seek to terminate any, claim, action, proceeding or investigation in respect of which indemnification could be sought hereunder
unless (a) such Indemnified Party indemnifies the Company from any liabilities arising out of such claim, action, proceeding or
investigation, (b) such settlement, compromise or consent includes an unconditional release of the Company and Indemnified Party
from all liability arising out of such claim, action, proceeding or investigation and (c) the parties involved agree that the terms
of such settlement, compromise or consent shall remain confidential.

 

    10

     

    

 

ARTICLE
X

 

LIMITATION OF LIABILITY OF THE MANAGER

 

Section 10.1 Limitation
of Liability

 

The Manager shall not
be liable for, and the Company shall not take, or permit to be taken, any action against the Manager to hold the Manager liable
for, any error of judgment or mistake of law or for any loss suffered by the Company or its Subsidiaries (including, without limitation,
by reason of the purchase, sale or retention of any security or assets) in connection with the performance of the Manager’s
duties under this Agreement, except for a loss resulting from gross negligence, willful misconduct, bad faith or reckless disregard
on the part of the Manager in the performance of its duties and obligations under this Agreement, or its fraudulent or dishonest
acts with respect to the Company or any of its Subsidiaries.

 

Section 10.2 Reliance of
Manager

 

The Manager may take
and may act and rely upon:

 

(a) the
opinion or advice of legal counsel, which may be in-house counsel to the Company or the Manager, any U.S.-based law firm, or other
legal counsel reasonably acceptable to the Board of Directors, in relation to the interpretation of this Agreement or any other
document (whether statutory or otherwise) or generally in connection with the Company;

 

(b) advice,
opinions, statements or information from bankers, accountants, auditors,

 

(c) valuation
consultants and other Persons consulted by the Manager who are in each case believed by the Manager in good faith to be expert
in relation to the matters upon which they are consulted; and

 

(d) any
other document provided to the Manager in connection with the Company upon which it is reasonable for the Manager to rely.

 

The Manager shall not
be liable for anything done, suffered or omitted by it in good faith in reliance upon such opinion, advice, statement, information
or document.

 

ARTICLE
XI

 

LEGAL ACTIONS

 

The Manager shall notify
the Company promptly of any claim made by any third party in relation to the assets of the Company ai1d shall send to the Company
any notice, claim, summons or writ served on the Manager concerning the Company.

 

The Manager shall not,
without the prior written consent of the Board of Directors, purport to accept or admit any claims or liabilities of which it receives
notification on behalf of the Company or make any settlement or compromise with any third party in respect of the Company.

 

    11

     

    

 

ARTICLE
XII

 

MISCELLANEOUS

 

Section 12.1 Obligation
of Good Faith; No Fiduciary Duties

 

The Manager shall perform
its duties under this Agreement in good faith and for the benefit of the Company. The relationship of the Manager to the Company
is as an independent contractor and nothing in this Agreement shall be construed to impose on the Manager any express or implied
fiduciary duties.

 

Section 12.2 Binding Effect

 

This Agreement shall
be binding upon, shall inure to the benefit of and be enforceable by the Parties hereto and their respective successors and permitted
assigns.

 

Section 12.3 Compliance

 

(a) The
Manager shall (and must ensure that each of its officers, agents and employees) comply with any law, including the Federal Securities
Laws and the securities laws of any applicable jurisdiction, in each case, as in effect from time to time, to the extent that it
concerns the functions of the Manager under this Agreement.

 

(b) The
Manager shall maintain management systems, policies and internal controls and procedures that reasonably ensure that the Manager
and its employees comply with the terms and conditions of this Agreement, as well as comply with the internal policies, controls
and procedures established by the Company from time to time, including, without limitation, those relating to trading policies,
conflicts of interest and similar corporate governance measures.

 

Section 12.4 Effect of
Termination; Survival

 

This Agreement shall
be effective as of the date first above written and shall continue in full force and effect thereafter until termination hereof
in accordance with Article VIII. The obligations of the Company set forth in Articles VII, VIII and IX and Sections 10.1, 12.5,
12.7, 12.8, 12.9, 12.17 and 12.20 hereof shall survive such termination of this Agreement, subject to applicable law.

 

    12

     

    

 

Section 12.5 Notices

 

Any notice or other
communication required or permitted under this Agreement shall be deemed to have been duly given (a) five (5) Business Days following
deposit in the mails if sent by registered or certified mail, postage prepaid, (b) when sent, if sent by facsimile transmission,
if receipt thereof is confirmed by telephone, (c) when delivered, if delivered personally to the intended recipient and (d) two
Business Days following deposit with a nationally recognized overnight courier service, in each case addressed as follows:

 

If to the Company, to:

 

1801 Piner Road

Santa Rosa, CA 95403

Attention: Robert Patterson

Email: bbary@g1847holdings.com

Phone Number: (707)
387-4262

 

If to the Manager, to:

 

c/o The 1847 Companies LLC

590 Madison Avenue, 21st Floor

New York, NY 10022

Attn: Ellery W. Roberts

Facsimile: 917-793-5950

 

with a copy (which shall not constitute
notice) to:

 

Bevilacqua PLLC

1050 Connecticut Avenue, NW, Suite
500

Washington, DC 20036

Attn: Louis A. Bevilacqua

Facsimile: 202-869-0889

 

or to such other address
or facsimile number as any such Party may, from time to time, designate in writing to all other Parties hereto, and any such communication
shall be deemed to be given, made or served as of the date so delivered or, in the case of any communication delivered by mail,
as of the date so received.

 

Section 12.6 Headings

 

The headings in this
Agreement are included for convenience of reference only and in no way define or delimit any of the provisions hereof or otherwise
affect their construction or effect.

 

Section 12.7 Applicable
Law

 

This Agreement, the
legal relations between and among the Parties and the adjudication and the enforcement thereof shall be governed by and interpreted
and construed in accordance with the laws of the State of New York, without regard to the conflicts of law provisions thereof to
the extent such principles or rules would require or permit the application of the laws of another jurisdiction.

 

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Section 12.8 Submission
to Jurisdiction; Waiver of Jury Trial

 

Subject to Section
12.20 hereof, each of the Parties hereby irrevocably acknowledges and agrees that any legal action or proceeding brought with respect
to any of the obligations arising under or relating to this Agreement shall be brought only in the courts of the State of New York,
County of New York or in the United States District Court for the Southern District of New York and each of the Parties hereby
irrevocably submits to and accepts with regard to any such action or proceeding, for itself and in respect of its property, generally
and unconditionally, the non-exclusive jurisdiction of the aforesaid courts. Each Party hereby further irrevocably waives any claim
that any such courts lack jurisdiction over such Party, and agrees not to plead or claim, in any legal action or proceeding with
respect to this Agreement or the transactions contemplated hereby brought in any of the aforesaid courts, that any such court lacks
jurisdiction over such Party. Each Party irrevocably consents to the service of process in any such action or proceeding by the
mailing of copies thereof by registered or certified mail, postage prepaid, to such party, at its address for notices set forth
in Section 12.5 hereof, such service to become effective ten (10) days after such mailing. Each Party hereby irrevocably waives
any objection to such service of process and further irrevocably waives and agrees not to plead or claim in any action or proceeding
commenced hereunder or under any other documents contemplated hereby that service of process was in any way invalid or ineffective.
The foregoing shall not limit the rights of any Party to serve process in any other manner permitted by applicable law. The foregoing
consents to jurisdiction shall not constitute general consents to service of process in the State of New York for any purpose except
as provided above and shall not be deemed to confer rights on any Person other than the respective Parties.

 

Each of the Parties
hereby waives any right it may have under the laws of any jurisdiction to commence by publication any legal action or proceeding
with respect this Agreement. To the fullest extent permitted by applicable law, each of the Parties hereby irrevocably waives the
objection which it may now or hereafter have to the laying of the venue of any suit, action or proceeding arising out of or relating
to this Agreement in any of the courts referred to in this Section 12.8 and hereby further irrevocably waives and agrees not to
plead or claim that any such court is not a convenient forum for any such suit, action or proceeding.

 

The Parties agree that
any judgment obtained by any Party or its successors or assigns in any action, suit or proceeding referred to above may, in the
discretion of such Party (or its successors or assigns), be enforced in any jurisdiction, to the extent permitted by applicable
law.

 

The Parties agree that
the remedy at law for any breach of this Agreement may be inadequate and that should any dispute arise concerning any matter hereunder,
this Agreement shall be enforceable in a court of equity by an injunction or a decree of specific performance. Such remedies shall,
however, be cumulative and nonexclusive, and shall be in addition to any other remedies which the Parties may have.

 

Each Party hereby waives,
to the fullest extent permitted by applicable law, any right it may have to a trial by jury in respect of any litigation as between
the Parties directly or indirectly arising out of, under or in connection with this Agreement or the transactions contemplated
hereby or disputes relating hereto. Each Party (a) certifies that no representative, agent or attorney of any other Party has represented,
expressly or otherwise, that such other Party would not, in the event of litigation, seek to enforce the foregoing waiver and (b)
acknowledges that it and the other Parties have been induced to enter into this Agreement by, among other things, the mutual waivers
and certifications in this Section 12.8.

 

    14

     

    

 

Section 12.9 Amendment;
Waivers

 

No term or condition
of this Agreement may be amended, modified or waived without the prior written consent of the Party against whom such amendment,
modification or waiver will be enforced.

 

Any waiver granted
hereunder shall be deemed a specific waiver relating only to the specific event giving rise to such waiver and not as a general
waiver of any term or condition hereof.

 

Section 12.10 Remedies
to Prevailing Party

 

If any action at law
or equity is necessary to enforce or interpret the terms of this Agreement, the prevailing party shall be entitled to reasonable
attorneys’ fees, costs, and necessary disbursements in addition to any other relief to which such party may be entitled.

 

Section 12.11 Severability

 

Each provision of this
Agreement is intended to be severable from the others so that if, any provision or term hereof is illegal, invalid or unenforceable
for any reason whatsoever, such illegality, invalidity or unenforceability shall not affect or impair the validity of the remaining
provisions and terms hereof; provided, however, that the provisions governing payment of the Management Fee described in
Article VII hereof are not severable.

 

Section 12.12 Benefits
Only to Parties

 

Nothing expressed by
or mentioned in this Agreement is intended or shall be construed to give any Person, other than the Parties and their respective
successors or permitted assigns and the Indemnified Parties, any legal or equitable right, remedy or claim under or in respect
of this Agreement or any provision herein contained, terms Agreement and all conditions and provisions hereof being intended to
be and being for the sole and exclusive benefit of the Parties and their respective successors and permitted assigns, and for the
benefit of no other Person.

 

Section 12.13 Further Assurances

 

Each Party hereto shall
take any and all such actions, and execute and deliver such further agreements, consents, instruments and any other documents as
may be necessary from time to time to give effect to the provisions and purposes of this Agreement.

 

Section 12.14 No Strict
Construction

 

The Parties have participated
jointly in the negotiation and drafting of this Agreement. In the event any ambiguity or question of intent or interpretation arises,
this Agreement shall be construed as if drafted jointly by all Parties, and no presumption or burden of proof shall arise favoring
or disfavoring any Party by virtue of the authorship of any provision of this Agreement.

 

    15

     

    

 

Section 12.15 Entire Agreement

 

This Agreement constitutes
the sole and entire agreement of the Parties with regards to the subject matter of this Agreement. Any written or oral agreements,
statements, promises, negotiations or representations not expressly set fo1ih in this Agreement are of no force and effect.

 

Section 12.16 Assignment

 

This Agreement shall
not be assignable by either party except by the Manager to any Person with which the Manager may merge or consolidate or to which
the Manager transfers substantially all of its assets, and then only in the event that such assignee assumes all of the obligations
to the Company and the Subsidiaries of the Company hereunder.

 

Section 12.17 Confidentiality

 

(a) The
Manager shall not, and the Manager shall cause its Affiliates and their respective agents and representatives not to, at any time
from and after the date of this Agreement, directly or indirectly, disclose or use any confidential or proprietary information,
including Company Information, involving or relating to (x) the Company, including any information contained in the books and records
of the Company and (y) the Subsidiaries of the Company, including any information contained in the books and records of any such
Subsidiaries; provided, however, that disclosure and use of any information shall be permitted (i) with the prior written
consent of the Company, (ii) as, and to the extent, expressly permitted by this Agreement or any other agreement between the Manager
and the Company or any of the Company’s Subsidiaries (but only to the extent that such information relates to such Subsidiaries),
(iii) as, and solely to the extent, necessary or required for the performance by the Manager, any of its Affiliates or its delegates,
of any of their respective obligations under this Agreement, (iv) as, and to the extent, necessary or required in the operation
of the Company's business or operations in the Ordinary Course of Business, (v) to the extent such information is generally available
to, or known by, the public or otherwise has entered the public domain (other than as a result of disclosure in violation of this
Section 12.17 by the Manager or any of its Affiliates), (vi) as, and to the extent, necessary or required by any governmental order,
applicable law or any governmental authority, subject to Section 12.17(d), and (vii) as, and to the extent, necessary or required
or reasonably appropriate in connection with the enforcement of any right or remedy relating to this Agreement or any other agreement
between the Manager and the Company or any of the Company’s Subsidiaries.

 

(b) The
Manager shall produce and implement policies and procedures that are reasonably designed to ensure compliance by the Manager’s
directors, officers, employees, agents and representatives with the requirements of this Section 12.17.

 

    16

     

    

 

(c) For
the avoidance of doubt, confidential information includes business plans, financial information, operational information, strategic
information, legal strategies or legal analysis, formulas, production processes, lists, names, research, marketing, sales information
and any other information similar to any of the foregoing or serving a purpose similar to any of the foregoing with respect to
the business or operations of the Company or any of its Subsidiaries. However, the Parties are not required to mark or otherwise
designate information as “confidential or proprietary information,” “confidential” or “proprietary”
in order to receive the benefits of this Section 12.17.

 

(d) In
the event that the Manager is required by governmental order, applicable law or any governmental authority to disclose any confidential
information of the Company or any of its Subsidiaries that is subject to the restrictions of this Section 12.17, the Manager shall
(i) notify the Company or any of its Subsidiaries in writing as soon as possible, unless it is otherwise affirmatively prohibited
by such governmental order, applicable law or such governmental authority from notifying the Company or any such Subsidiaries,
as the case may be, (ii) cooperate with the Company or any such Subsidiaries to preserve the confidentiality of such confidential
information consistent with the requirements of such governmental order, applicable law or such governmental authority and (iii)
use its reasonable best efforts to limit any such disclosure to the minimum disclosure necessary or required to comply with such
governmental order, applicable law or such governmental authority, in each case, at the cost and expense of the Company.

 

(e) Nothing
in this Section 12.17 shall prohibit the Manager from keeping or maintaining any copies of any records, documents or other information
that may contain information that is otherwise subject to the requirements of this Section 12.17, subject to its compliance with
this Section 12.17.

 

(f) The
Manager shall be responsible for any breach or violation of the requirements of this Section 12.17 by any of its agents or representatives.

 

Section 12.18 Counterparts

 

This Agreement may
be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute
but one and the same instrument.

 

Section 12.19 Designation

 

This Agreement is an
“Offsetting Management Services Agreement” as such term is defined and used pursuant to the Parent MSA, and the Management
Fee is an “Offsetting Management Fee” as such term is defined and used pursuant to the Parent MSA.

 

Section 12.20 Dispute Resolution

 

All disputes arising
out of this Agreement or relating to the performance of either Party of its obligations hereunder, which disputes the Parties are
unable to resolve directly between themselves, shall be settled by arbitration in New York, New York (unless the Company and the
Manager agree upon another location) before three arbitrators in accordance with the rules then in effect of the American Arbitration
Association.

 

*         *         *

 

    17

     

    

IN WITNESS WHEREOF,
the Parties have executed this Agreement as of the date first set forth above.

 

	 	1847 ASIEN INC.
	 	 	 
	 	By:	/s/  Robert Patterson
	 	Name: Robert Patterson
	 	Title: President
	 	 
	 	1847 PARTNERS LLC
	 	 	 
	 	By:	/s/
Ellery W. Roberts
	 	Name: Ellery W. Roberts
	 	Title: Manager

 

[Signature Page to Management Services Agreement]Exhibit 10.6

 

 

TVT Direct Funding LLC

65 W 36th St Fl 12 New York, NY 10018

 

AGREEMENT OF SALE OF FUTURE RECEIPTS

 

This AGREEMENT OF SALE OF FUTURE RECEIVABLES (this
“Agreement”) dated as of 05/28/2020, is made by and between TVT Direct Funding LLC, a Delaware
Limited Liability Company as purchaser (“Purchaser”), and the merchant whose name, address and other pertinent
information is set forth below, as seller (“Merchant”).

 

Merchant Information (see addendum)

 

	Merchant Legal Name: 1847 ASIEN INC, and ASIEN’S APPLIANCE, INC.	 	DBA Name:
	Entity Type: Corporation	 	FEIN: *****5125
	State Of Incorporation: CA	 	Bank Name: EXCHANGE BANK
	Address: 1801 PINER ROAD, SANTA ROSA, CA, 95403	 	Phone: 5623284553

 

Background

 

WHEREAS, Merchant
is an entity engaged in the business that it currently conducts and is willing to sell to Purchaser a certain portion of Merchant’s
future receivables (such portion, the “Sold Future Receipts”); and

 

WHEREAS, Purchaser is
an entity engaged in the business of purchasing future receivables and is willing to purchase from Merchant the Sold Future Receipts;
and

 

NOW, THEREFORE, for good and valuable consideration,
the mutual receipt of which and sufficiency is hereby acknowledged, the parties to this Agreement agree to the foregoing and as
follows.

 

    Page 1

     

    

 

KEY BUSINESS TERMS AND DEFINITIONS:

 

	Sold Amount of Future Receipts	 	$	685,000.00	 	 	The dollar value of the Sold Future Receipts that Merchant agrees to sell to Purchaser.
	 	 	 	 	 	 	 
	Purchase Price	 	$	500,000.00	 	 	The total amount that Purchaser agrees to pay for the Sold Amount of Future Receipts.
	 	 	 	 	 	 	 
	Future Receipts	 	$	1,251,286.09	 	 	All sums due to Merchant by its customers/clients/vendees as payment for the Merchant’s sale of goods and services in the ordinary course of Merchant’s entities from and after the date when the Purchase Price is paid to Merchant irrespectively of how such sums is paid over and delivered to Merchant (in the form of cash, check, credit, credit card charge, debit card payment, ACH or any other form of funds transfer or payment.)
	 	 	 	 	 	 	 
	Direct Payments to Third Parties/Renewals	 	 	N/A	 	 	Paid to Purchaser and/or Other Funders.
	 	 	 	 	 	 	 
	Total Amount Sent to Merchant	 	$	475,000.00	 	 	Net of Discount and Direct Payments to 3rd Parties:
	 	 	 	 	 	 	 
	Specified Percentage	 	 	20	%	 	An agreed upon percentage of the Weekly Future Receipts that Merchant shall deliver to Purchaser until the entire Sold Amount of Future Receipts is delivered to Purchaser in accordance with this Agreement.
	 	 	 	 	 	 	 
	Discount Factor	 	 	1.37	 	 	The risk adjustment to the Amount Sold that determines the Futures Receivables Discount
	 	 	 	 	 	 	 
	Weekly Delivery	 	$	23,299.35	 	 	A dollar amount that Merchant and Purchaser agree to be a good faith approximation of the Specified Percentage of Weekly Future Receipts as of the date of this Agreement, based upon the information provided by Merchant to Purchaser concerning Merchant’s most recent accounts receivables.
	 	 	 	 	 	 	 
	Origination Fees	 	$	25,000.00	 	 	The amount Purchaser will withhold from the Purchase Price which represents the due diligence and costs of the Purchaser in performing its analysis for this agreement.
	 	 	 	 	 	 	 
	Early Delivery Discount	 	 	1.2 @ 1 month(s)

 1.22 @ 2 month(s)

 1.24 @ 3 month(s)	 	 	Discount Paid to Merchant for delivering Future Receivables Early
	 	 	 	 	 	 	 
	Estimated Term of this Agreement	 	 	7 Months	 	 	The estimated Term of this Agreement is the period commencing on the date
    when the Purchase Price is paid to Merchant (the “Commencement Date”) and expiring on the date when the
    Sold Amount of Future Receipts is delivered to Purchaser in full.
	 	 	 	 	 	 	 
	Business Day	 	 	 	 	 	Monday through Friday during the Term of this Agreement except the days when the banking institutions in the state where the Merchant’s business is located are closed for holidays and do not process ACH transfers.

 

Note: The bold type terms
in the tables above and below shall constitute defined terms with respect to this Agreement. PLEASE NOTE THAT THE PURCHASER WILL
NOT REMIT MORE THAN THE EXPECTED WEEKLY REMITTANCE PER DAY WITHOUT THE CONSENT OF THE MERCHANT.

 

		I.	SALE OF
                                         FUTURE RECEIPTS; PAYMENT OF PURCHASE PRICE:

 

		1.	Sale
                                         of Future Receipts. Merchant hereby sells, assigns, transfers and conveys (hereinafter,
                                         the “Sale”) unto Purchaser all of Merchant’s right, title and
                                         interest in to the Specified Percentage of the Future Receipts until the Sold Amount
                                         of Future Receipts is delivered by Merchant to Purchaser; to have and hold the same unto
                                         Purchaser, its successors and assigns, until balance paid in full. This Sale of the Sold
                                         Future Receipts is made without express or implied warranty to Purchaser of collectability
                                         of the Sold Future Receipts by Purchaser and without recourse against Merchant except
                                         as specifically set forth in this Agreement. By virtue of this Agreement, Merchant transfers
                                         to Purchaser full and complete ownership of the Sold Future Receipts and Merchant retains
                                         no legal or equitable interest therein.

 

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		2.	Payment
                                         of Purchase Price.

 

		a.	In
consideration of the transfer by Merchant to Purchaser of the Sold Future Receipts, Purchaser agrees to pay to Merchant the Purchase
Price; subject to the immediately following subsection (b) and the satisfactory completion of Purchaser’s due diligence
(in its discretion), the Purchase Price shall be turned over and delivered to Merchant immediately after the date of this Agreement.

 

		b.	In
                                         the event as of the date when Purchaser shall deliver to Merchant the Purchase Price,
                                         Merchant shall have owed to Purchaser a certain amount of debt unrelated to his Agreement
                                         or certain sums pursuant to this Agreement including without limitation any and all origination
                                         fees. (the sum of all such prior obligations of Merchant to Purchaser, the “Prior
                                         Debt”) Merchant hereby grants Purchaser the right to withhold from the Purchase
                                         Price to be delivered to Merchant pursuant to subparagraph (a) above, the amount of the
                                         Prior Debt in full satisfaction thereof. Furthermore, Merchant agrees that delivery to
                                         the Merchant of the Purchase Price reduced by the amount of the Prior Debt shall not
                                         be deemed to be Purchaser’s breach of its obligations under this Agreement and
                                         such reduction shall not in any way or form shall modify or reduce Merchant’s obligations
                                         under this Agreement.

 

		c.	In
the event the amount of the Purchase Price is reduced by the amount of Prior Debt, any and all references in this Agreement to
the Purchase Price shall mean “the Purchase Price as reduced by the Prior Debt, if any.”

 

		II.	DELIVERY
                                         OF SOLD AMOUNT OF FUTURE RECEIPTS:

 

		3.	Weekly Deliveries. The Sold Amount of
Future Receipts shall be delivered to Purchaser in equal amounts of Weekly Delivery. The Weekly Deliveries shall be made once
each week on the same Business Day starting on the Commencement Date, which is the date in which the Purchaser sets forth that
Weekly Deliveries are scheduled to begin. It should be noted that the Commencement Date shall be established by the Purchaser
and shall be with no later than 15 days following the date in which the Purchase Price (less the Origination Fees) are sent to
the Merchant. The amount of the Weekly Delivery is subject to Merchant’s right for adjustment and/or reconciliation set
forth in this Agreement. The last Weekly Delivery shall be made when the Sold Amount of Future Receipts and other amounts due
to Purchaser under this Agreement (if any) are delivered to Purchaser in full.

 

		4.	Method of Delivery of Sold Amount of Future Receipts.
Purchaser shall have the right, at its sole and absolute discretion, to choose among the following three methods of delivery
of the Weekly Delivery to Purchaser:

 

		a.	Directly
from the Merchant’s Approved Bank Account (as such term is defined below) by weekly debiting the amount of Weekly Delivery
via ACH debit (“Direct Debit”); or

 

		b.	From
                                         the Merchant’s Approved Credit Card Processor (as such term is defined below) by
                                         instructing such Approved Credit Card Processor to remit weekly the amount of Weekly
                                         Delivery to Purchaser (“Credit Card Split”); or

 

		c.	From
a special bank account established jointly by Purchaser and Merchant whereby all Future Receipts shall be deposited into such
bank account during the term of this Agreement in accordance with a lockbox arrangement among Merchant, Purchaser and a banking
institution chosen by Purchaser and Purchaser weekly debiting the amount of Weekly Delivery from such bank account (the “Lockbox
Arrangement”).

 

At any time
during the term of this Agreement, Purchaser may change the method by which it will accept the Weekly Delivery by providing Merchant
with written instructions of a new method of delivery of Weekly Delivery to Purchaser.

 

		5.	Approved Bank Account and Credit Card
                                         Processor. During the term of this Agreement, Merchant shall: (i) deposit all
                                         Future Receipts into one (and only one) bank account which bank account shall be preapproved
                                         by Purchaser (the “Approved Bank Account”), (ii) use one (and only
                                         one) credit card processor which processor shall be preapproved by Purchaser (the “Approved
                                         Credit Card Processor”) and (iii) deposit all credit card receipts into the
                                         Approved Bank Account. In the event the Approved Bank Account or Approved Credit Card
                                         Processor shall become unavailable or shall cease providing services to Merchant during
                                         the term of this Agreement, prior to the first date of such unavailability or cessation
                                         of services, Merchant shall arrange for another Approved Bank Account or Approved Credit
                                         Card Processor, as the case may be.

 

	Account Number:	 	 	Routing Number:	 

 

		6.	Authorization of Direct Debit, Credit Card Split
and Lockbox Arrangement.

 

		a.	Merchant
hereby authorizes Purchaser to initiate Direct Debit by way of electronic checks or ACH debits from the Approved Bank Account
in the amount of Weekly Delivery each Business Day until Purchaser receive the full Sold Amount of Future Receipts; Merchant shall
provide Purchaser with all access code(s) for the Approved Bank Account.

 

		b.	Merchant
hereby authorizes Purchaser to initiate Credit Card Split by making the necessary arrangement with the Approved Credit Card Processor
for remittance of the Weekly Delivery each Business Day until the Purchaser receives the full Sold Amount of Future Receipts;
Merchant shall provide Purchaser with all access code(s) for the Approved Credit Card Processor.

 

    Page 3

     

    

 

		c.	Merchant
hereby authorizes Purchaser to initiate a Lockbox Arrangement and to instruct Merchant’s Approved Credit Card Processor
and Merchant’s invoiced customers/clients/vendees to deposit all sums due to Merchant from each of those parties directly
to the special bank account established in accordance with the Lockbox Arrangement; If required, Merchant shall enter into a lockbox
agreement with Purchaser and the banking institution chosen by Purchaser for the purpose of establishing such bank account.

 

		7.	Third Party Appointment and Authorization.
                                         By signing below, Merchant acknowledges that the Purchaser may, at any time,
                                         at Purchaser’s sole discretion, and without prior notice, appoint a third party,
                                         including but not limited to its wholly owned subsidiaries, including, without limitation,
                                         Kinetic Direct Funding, LLC. (herein referred to as the “Servicing Agent”)
                                         to perform any, or all, of the actions authorized by the ACH Authorization and the Agreement.
                                         Merchant further agrees and acknowledges that Servicing Agent shall have all of the same
                                         rights, responsibilities, and authorizations granted to Purchaser by the ACH Authorization
                                         and the Agreement. For purposes of clarity, any Servicing Agent may perform any and all
                                         activities to service the Agreement, including the collection of Funds Arising from Future
                                         Receipts (as set forth above), as if it was the Purchaser.

 

		8.	Fees Associated with Debiting Approved
                                         Bank Account. It shall be Merchant’s exclusive responsibility to pay to
                                         its banking institution and/or Purchaser’s banking institution directly (or to
                                         compensate Purchaser, in case it is charged) all fees, charges and expenses incurred
                                         by either Merchant or Purchaser due to rejected electronic checks or ACH debit attempts,
                                         overdrafts or rejections by Merchant’s banking institution of the transactions
                                         contemplated by this Agreement.

 

		9.	Read Only Access to the Approved Bank
                                         and Credit Card Accounts. Merchant hereby agrees that during the term of this
                                         Agreement Purchaser shall have the right to perform ongoing read only electronic monitoring
                                         of transactions occurring in the Approved Bank Account and Merchant’s account with
                                         the Approved Credit Card Processor (the “Approved Credit Card Account”).
                                         Merchant agrees to provide Purchaser all required online access codes for the Approved
                                         Bank Account and the Approved Credit Card Account. If Purchaser’s electronic (online)
                                         access to Merchant’s Approved Bank Account or the Approved Credit Card Account
                                         is disabled for any reason, Merchant shall immediately and diligently undertake all steps
                                         required from it to restore Purchaser’s access to both Approved Bank Account and
                                         Approved Credit Card Account. Merchant’s failure to comply with the provisions
                                         of this Section 8 shall constitute Merchant’s material breach of its obligations
                                         under this Agreement.

 

		III.	MERCHANT’S RIGHT FOR RECONCILIATION
                                         AND ADJUSTMENT:

 

		10.	Merchant’s Right for Reconciliation
                                         of Weekly Deliveries.

 

		a.	If
                                         any time during the term of this Agreement Merchant will experience sporadic increase
                                         or decrease in its weekly receipts, Merchant shall have the right, at its sole and absolute
                                         discretion, but subject to the provisions of Section 10 below, to request retroactive
                                         reconciliation of the Merchant’s actual weekly receipts for one full calendar month
                                         immediately preceding the day when such request for reconciliation is received by Purchaser
                                         (each such calendar month, a “Reconciliation Month”).

 

		b.	Such
                                         reconciliation (the “Reconciliation”) of Merchant’s weekly receipts
                                         for a Reconciliation Month shall be performed by Purchaser within five (5) Business Days
                                         following its receipt of the Merchant’s request for reconciliation by either crediting
                                         or debiting the difference back to or from the Approved Bank Account so that the total
                                         amount debited by Purchaser from the Approved Bank Account during the Reconciliation
                                         Month at issue equal the Specific Percentage of the Future Receipts that Merchant collected
                                         during the Reconciliation Month at issue.

 

		c.	The parties acknowledge and agree that one or more
Reconciliation procedures performed by Purchaser may reduce the actual Weekly Delivery amount during the Reconciliation Month
in comparison to the one set forth in preamble of this Agreement, and, as the result of such reduction, the term of this Agreement
during which Purchaser will be debiting the Approved Bank Account may extend substantially.

 

		11.	Request for Reconciliation Procedure.

 

		a.	It shall be Merchant’s sole responsibility and
the right hereunder to initiate Reconciliation of Merchant’s actual receipts during any Reconciliation Month by sending
a request for reconciliation to Purchaser.

 

		b.	Any such request for Reconciliation of the
                                         Merchant’s weekly receipts for a specific Reconciliation Month shall be in writing,
                                         shall include a copy of Merchant’s bank statement and a credit card processing
                                         statement for the Reconciliation Month at issue, and shall be received by Purchaser via
                                         email customer.service@tvtdirectfunding.com within five (5) Business Days after
                                         the last day of the Reconciliation Month at issue (time being of the essence as to the
                                         last day of the period during which such demand for reconciliation shall be received
                                         by Purchaser).

 

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		c.	Purchaser’s receipt of Merchant’s request
for Reconciliation after the expiration of the Five-Business-Day period following the last day of the Reconciliation Month for
which such reconciliation is requested nullifies and makes obsolete Merchant’s request for Reconciliation for that specific
Reconciliation Month.

 

		d.	Merchant shall have the right to request Reconciliation
as many times during the term of this Agreement as it deems proper, and Purchaser shall comply with such request, provided that:

 

		i.	Each
such request is made in accordance with the terms of this Section 10.

 

		ii.	If
a request for Reconciliation is made after the expiration of the term of this Agreement and, as the result of such Reconciliation,
the total amount actually debited by Purchaser from the Approved Bank Account will become less than the Sold Amount of Future
Receipts, then and in such event the term of this Agreement shall automatically be extended until the time when the total amount
actually debited from Approved Bank Account pursuant to this Agreement shall become equal to the Sold Amount of Future Receipts.

 

		iii.	In
the event after the last day of the term of this Agreement Merchant will determine in good faith that the actual amount debited
by Purchaser from the Approved Bank Account pursuant to this Agreement is greater than the Sold Amount of Future Receipts, then
and in such event Merchant shall have the right to request final Reconciliation within five (5) Business Days following the expiration
date of the term of this Agreement (time being of the essence) and Purchaser shall honor such request within five (5) Business
Days following the day of its receipt of such request. It shall be noted that if Purchaser receives funds that it is not entitled
to, then the Purchaser shall be required to return those funds to the Merchant without request by the Merchant for reconciliation
as set forth above.

 

		e.	Nothing set forth in Sections 9 or 10 of this Agreement
shall be deemed to provide Merchant with the right to interfere with Purchaser’s right and ability to debit the Approved
Bank Account while the request for Reconciliation of Merchant’s receipts is pending or until the Sold Amount of Future Receipts
is delivered to Purchaser in full.

 

		12.	Adjustment of Weekly Delivery.

 

		a.	If
                                         any time during the term of this Agreement Merchant will experience steady increase or
                                         decrease in its weekly receipts, Merchant shall have the right, at its sole and absolute
                                         discretion, but subject to the provisions of Section 12 below, to request modification
                                         (“Adjustment”) of the amount of the Weekly Delivery that Merchant
                                         is obligated to deliver weekly to Purchaser in accordance with the provisions of Section
                                         3 above. Such Adjustment shall become effective as of the date it is granted and the
                                         new adjusted amount of the Weekly Delivery (the “Adjusted Weekly Delivery”)
                                         shall replace and supersede the amount of the Weekly Delivery set forth in the preamble
                                         of this Agreement.

 

		b.	The
Adjustment of the Weekly Delivery shall be performed by Purchaser within five (5) Business Days following its receipt of the Merchant’s
request for Adjustment by modifying weekly amounts that shall be debited from the Approved Bank Account until the Sold Amount
of Future Receipts is delivered in full. Notwithstanding anything to the contrary set forth in Sections 11 and 12 hereof, no Adjustment
shall take place until and unless Reconciliation for at least one (1) Reconciliation Month takes place resulting in reduction
of the total amount debited from Merchant’s Approved Bank Account during the Reconciliation Month by at least 20% in comparison
to the amount that would have been debited during that month without Reconciliation.

 

		c.	The
parties acknowledge and agree that one or more Adjustments performed pursuant to this Agreement may substantially extend the term
of this Agreement and the period during which Purchaser will be debiting the Approved Bank Account.

 

		d.	In
the event of a missed remittance of the Weekly Delivery Amount, the Merchant acknowledges Purchaser’s right to receive daily
remittances equivalent to 20% of the Weekly Delivery Amount.

 

		13.	Request for Adjustment Procedure.

 

		a.	It shall be Merchant’s sole responsibility and
the right to initiate the Adjustment by sending a request for Adjustment to Purchaser.

 

		b.	A request for Adjustment (an “Adjustment
                                         Request”) shall be in writing, shall include copies of: (i) Merchant’s
                                         three (3) consecutive bank statements of the Approved Bank Account and credit card processing
                                         statements immediately preceding the date of Purchaser’s receipt of the Adjustment
                                         Request, and (ii) Merchant’s bank statements and credit card processing statements
                                         previously provided by Merchant to Purchaser based upon which statements the amount of
                                         Weekly Delivery set forth in preamble to this Agreement (or the then current Adjusted
                                         Weekly Delivery, as the case may be) was determined, and shall be received by Purchaser
                                         by email at customer.service@tvtdirectfunding.com within five (5) Business Days after
                                         the date that is the later of the last day of the latest bank statement enclosed with
                                         the Adjustment Request and the last date of the latest card processing statement enclosed
                                         with the Adjustment Request (time being of the essence as to the last day of the period
                                         during which an Adjustment Request shall be received by Purchaser).

 

		c.	Purchaser’s receipt of a Merchant’s Adjustment
Request after the expiration of the above referenced Five-Business-Day period nullifies and makes obsolete such Adjustment Request.

 

    Page 5

     

    

 

		d.	Merchant shall have the right to request Adjustment
of the Weekly Delivery (or Adjusted Weekly Delivery, as the case may be) as many times during the term of this Agreement as it
seems proper, and Purchaser shall comply with such request, provided that:

 

		i.	Each
such request for Adjustment is made in accordance with the terms of this Section 12.

 

		ii.	A
request for Adjustment shall not be made after the expiration of the term of this Agreement.

 

		e.	Nothing set forth in Sections 11 or 12 of this Agreement
shall be deemed to provide Merchant with the right to interfere with Purchaser’s right and ability to debit the Approved
Bank Account while the request for Adjustment is pending or until the Sold Amount of Future Receipts is delivered to Purchaser
in full.

 

		IV.	RISK SHARING ACKNOWLEDGMENTS AND AGREEMENTS:

 

		14.	Both Merchant and Purchaser Acknowledge and Agree
that:

 

		a.	The
Sold Amount of Future Receipts represents a portion of Merchant’s Future Receipts.

 

		b.	This
Agreement consummates the sale of the Sold Amount of Future Receipts at a discount, not borrowing funds by Merchant from Purchaser.
Purchaser does not charge Merchant and will not collect from Merchant any interest on the monies spent on the purchase of the
Sold Amount of Future Receipts. The period of time that it will take Purchaser to collect the Sold Amount of Future Receipts is
not fixed, is unknown to both parties as of the date of this Agreement and will depend on how well or not well Merchant’s
business will be performing following the date hereof. As an extreme example, in the event Merchant’s business ceases to
exist after Purchaser’s payment of the Purchase Price and purchase of the Sold Amount of Future Receipts for reason outside
Merchant’s control, Purchaser may never recover any moneys spent on such purchase without recourse.

 

		c.	The
amount of the Weekly Delivery set forth in preamble to this Agreement is calculated based upon the information concerning an average
amount of weekly receipts collected by Merchant’s business immediately prior to the date of this Agreement which information
was provided by Merchant to Purchaser.

 

		d.	The
amounts of Merchant’s future weekly receipts may increase or decrease over time.

 

		e.	If,
based upon the Reconciliation and/or the Adjustment procedures described above, it will be determined that the actual weekly amounts
of the Specified Percentage of the Future Receipts get reduced in comparison to the amount of the Weekly Delivery as of the date
of this Agreement set forth in the preamble of this Agreement, and in comparison to the amount that both Merchant and Purchaser
may have anticipated or projected because Merchant’s business has slowed down, or if the full Sold Amount of Future Receipts
is not remitted because Merchant’s business went bankrupt or otherwise ceased operations in the ordinary course of business(but
not due to Merchant’s willful mishandling of its business), and Merchant shall have not breached this Agreement, Merchant
would not owe anything to Purchaser and would not be in breach of or in default under this Agreement.

 

		15.	Purchaser’s Risk Acknowledgments.
                                         Purchaser agrees to purchase the Sold Amount of Future Receipts knowing the risks
                                         that Merchant’s business may slow down or fail, and Purchaser hereby assumes these
                                         risks based exclusively upon the information provided to it by Merchant and related to
                                         the business operations of Merchant’ business prior to the date hereof and upon
                                         Merchant’s representations, warranties and covenants contained in this Agreement
                                         that are designed to give Purchaser a reasonable and fair opportunity to receive the
                                         benefit of its bargain. Furthermore, Purchaser hereby acknowledges and agrees that Merchant
                                         shall be excused from performing its obligations under this Agreement in the event Merchant’s
                                         business ceases its operations exclusively due to the following reasons (collectively,
                                         the “Valid Excuses”):

 

		i.	Adverse
business conditions that occurred for reasons outside Merchant’s control and not due to Merchant’s willful or negligent
mishandling of its business;

 

		ii.	Loss
of the premises where Merchant’s business operates (but not due to Merchant’s violation of its obligations to its
landlord);

 

		iii.	Bankruptcy
of Merchant;

 

		iv.	Natural
disasters or similar occurrences beyond Merchant’s control.

 

		16.	Not a Loan. Merchant and Purchaser
                                         agree that the Purchase Price is paid to Merchant in consideration for the ownership
                                         of the Sold Amount of Future Receipts and that payment of the Purchase Price by Purchaser
                                         is not intended to be, nor shall it be construed as, a loan from Purchaser to Merchant
                                         that requires absolute and unconditional repayment on a maturity date. To the contrary,
                                         Purchaser’s ability to receive the Sold Amount of Future Receipts pursuant to this
                                         Agreement, and the date when the Sold Amount of Future Receipts is delivered to Purchaser
                                         in full (if ever) are subject to and conditioned upon performance of Merchant’s
                                         business.

 

    Page 6

     

    

 

		V.	MERCHANT’S OBLIGATIONS, REPRESENTATIONS,
                                         WARRANTIES AND COVENANTS:

 

		17.	Merchant represents, warrants and
                                         covenants that the following statements are valid, true and correct as of the
                                         date of this Agreement and unless expressly stated otherwise shall remain valid, true
                                         and correct during the term of this Agreement:

 

		a.	Use of Purchase Price. Merchant
                                         hereby acknowledges that it fully understands that: (i) Purchaser’s ability to
                                         receive the Sold Amount of Future Receipts is contingent upon Merchant’s continued
                                         operation of its business and successful generation of the Future Receipts until the
                                         Sold Amount of Future Receipts is delivered to Purchaser in full; (ii) that in the event
                                         of decreased efficiency or total failure of Merchant’s business Purchaser’s
                                         receipt of the full or any portion of the Sold Amount of Future Receipts may be delayed
                                         indefinitely. Based upon the forgoing, Merchant agrees to use the Purchase Price exclusively
                                         for the benefit and advancement of Merchant’s business operations and for no other
                                         purpose.

 

		b.	Merchant Shall Not. During
                                         the term of this Agreement, without first obtaining Purchaser’s consent, which
                                         consent may not be unreasonably withheld, Merchant shall not:

 

		i.	Change
or close the Approved Bank Account or change or terminate the Approved Processor.

 

		ii.	Open
and deposit Future Receipts into a bank account different from the Approved Bank Account.

 

		iii.	Add
a credit card processor in addition to the Approved Processor.

 

		iv.	Sell
Merchant’s business (as an entity or its assets) to a third party.

 

		v.	Disconnect
Purchaser’s bank monitoring software.

 

		vi.	Sell
                                         Future Receipts to a third party. Notwithstanding the foregoing, the Purchaser
                                         is under no obligation to consent to selling receipts to a third party (particularly
                                         from a merchant advance company) pursuant to an agreement which has a term of less than
                                         12 months and withholding such consent shall in no event be deemed unreasonably withheld.

 

		vii.	Breach,
or deviate from strict performance of, any and all other obligations of Merchant under this Agreement.

 

		c.	Financial Condition and Financial
                                         Information. Merchant’s bank and financial statements, copies of which
                                         have been furnished to Purchaser, and future statements which may be furnished hereafter
                                         pursuant to this Agreement or upon Purchaser’s request, fairly represent the financial
                                         condition of Merchant as of the dates such statements are issued, and prior to execution
                                         of the Agreement there have been no material adverse changes, financial or otherwise,
                                         in such condition, operation or ownership of Merchant. Merchant has a continuing, affirmative
                                         obligation to advise Purchaser of any material adverse change in its financial condition,
                                         operation or ownership. Purchaser may request statements at any time during the term
                                         of this Agreement and Merchant shall provide them to Purchaser within Five (5) Business
                                         Days. Merchant’s failure to do so is a material breach of this Agreement.

 

		d.	Governmental Approvals. Merchant
                                         is in compliance and, during the term of this Agreement, shall be in compliance with
                                         all laws and has valid permits, authorizations and licenses to own, operate and lease
                                         its properties and to conduct the business in which it is presently engaged.

 

		e.	Good Standing. Merchant is
                                         a corporation/limited liability company/limited partnership/other type of entity that
                                         is in good standing and duly incorporated or otherwise organized and validly existing
                                         under the laws of its jurisdiction of incorporation or organization and has full power
                                         and authority necessary to carry its business as it is now being conducted.

 

    Page 7

     

    

 

		f.	Authorization.
                                         Merchant has all requisite power to execute, deliver and perform this Agreement and
                                         consummate the transactions contemplated hereunder; entering into this Agreement will
                                         not result in breach or violation of, or default under, any agreement or instrument by
                                         which Merchant is bound or any statute, rule, regulation, order or other law to which
                                         Merchant is subject, nor require the obtaining of any consent, approval, permit or license
                                         from any governmental authority having jurisdiction over Merchant. All organizational
                                         and other proceedings required to be taken by Merchant to authorize the execution, delivery
                                         and performance of this Agreement have been taken. The person signing this Agreement
                                         on behalf of Merchant has full power and authority to bind Merchant to perform its obligations
                                         under this Agreement.

 

		g.	Accounting
                                         Records and Tax Returns. Merchant will treat receipt of the Purchase Price
                                         and delivery of the Sold Future Receipts in a manner evidencing sale of its future receipts
                                         in its accounting records and tax returns and further agrees that Purchaser is entitled
                                         to audit Merchant’s accounting records upon reasonable Notice in order to verify
                                         compliance. Merchant hereby waives any rights of privacy, confidentiality or taxpayer
                                         privilege in any litigation or arbitration arising out of this Agreement in which Merchant
                                         asserts that this transaction is anything other than a sale of future receipts.

 

		h.	Taxes;
                                         Workers Compensation Insurance. Merchant will promptly pay, when due,
                                         all taxes, including without limitation, income, employment, sales and use taxes, imposed
                                         upon Merchant’s business by law, and will maintain workers compensation insurance
                                         required by applicable governmental authorities.

 

		i.	Business
                                         Insurance. Merchant will maintain general liability and business-interruption
                                         insurance naming Purchaser as loss payee and additional insured in the amounts and against
                                         risks as are satisfactory to Purchaser and shall provide Purchaser proof of such insurance
                                         upon request.

 

		j.	Electronic
                                         Check Processing Agreement. Merchant shall not change its processor, add
                                         terminals, change its financial institution or bank account(s) or take any other action
                                         that could have any adverse effect upon Merchant’s obligations or impede Purchaser’s
                                         rights under this Agreement, without Purchaser’s prior written consent, which consent
                                         may not be unreasonably withheld.

 

		k.	No
                                         Diversion of Future Receipts. Merchant shall not allow any event to occur
                                         that would cause a diversion of any portion of Merchant’s Future Receipts from
                                         the Approved Bank Account without first obtaining Purchaser’s approval of such
                                         diversion.

 

		l.	Change
                                         of Name or Location. Merchant shall not conduct Merchant’s businesses
                                         under any name other than as disclosed to the Processor and Purchaser and will not change
                                         any of its places of business without first obtaining Purchaser’s written consent,
                                         which consent may not be unreasonably withheld. Notwithstanding the foregoing, the Purchaser
                                         is under no obligation to consent to working capital funding (particularly from a merchant
                                         advance company) which has a term of less than 12 months and withholding such consent
                                         shall in no event be deemed unreasonably withheld.

 

		m.	Prohibited
                                         Business Transactions: Merchant shall not: (i) transfer or sell all or
                                         substantially all of its assets without first obtaining Purchaser’s consent unless
                                         Merchant’s obligations hereunder are repaid in full concurrently with the closing
                                         of such transaction; or (ii) make or send notice of its intended bulk sale or transfer.

 

		n.	No Closing
                                         of Business. Merchant will not sell, dispose, transfer or otherwise convey
                                         all or substantially all of its business or assets without first: (i) obtaining the express
                                         written consent of Purchaser, unless Merchant’s obligations hereunder are repaid
                                         in full concurrently with the closing of such transaction, and (ii) providing Purchaser
                                         with a written agreement of a purchaser or transferee of Merchant’s business or
                                         assets assuming all of Merchant’s obligations under this Agreement pursuant to
                                         documentation satisfactory to Purchaser. Merchant represents that it has no current plans
                                         to close its business either temporarily (for renovations, repairs or any other purpose),
                                         or permanently. Merchant agrees that until Purchaser shall have received all of the Sold
                                         Amount of Future Receipts, Merchant will not voluntarily close its business on a permanent
                                         or temporarily basis for renovations, repairs, or any other purposes. Notwithstanding
                                         the foregoing, Merchant shall have the right to close its business temporarily if such
                                         closing is necessitated by a requirement to conduct renovations or repairs imposed upon
                                         Merchant’s business by legal authorities having jurisdiction over Merchant’s
                                         business (such as from a health department or fire department) or if such closing is
                                         necessitated by circumstances outside Merchant’s reasonable control. Prior to any
                                         such temporary closure of its business, Merchant shall provide Purchaser ten (10) Business
                                         Days advance notice.

 

		o.	No
                                         Pending Bankruptcy. As of the date of Merchant’s execution of this
                                         Agreement, Merchant is not insolvent, has not filed, and does not contemplate filing,
                                         any petition for bankruptcy protection under Title 11 of the United States Code and there
                                         has been no involuntary bankruptcy petition brought or pending against Merchant. Merchant
                                         represents that it has not consulted with a bankruptcy attorney on the issue of filing
                                         bankruptcy within six months immediately preceding the date of this Agreement.

 

		p.	Estoppel
                                         Certificate. Merchant will at any time, and from time to time, upon at
                                         least one (1) day’s prior notice from Purchaser to Merchant, execute, acknowledge
                                         and deliver to Purchaser and/or to any other person or entity specified by Purchaser
                                         in its notice, a statement certifying that this Agreement is unmodified and in full force
                                         and effect (or, if there have been modifications, that the same is in full force and
                                         effect as modified and stating the modification(s) and stating the date(s) on which the
                                         Sold Amount of Future Receipts or any portion thereof has been delivered.

 

		q.	Working
                                         Capital Funding. Merchant shall not further encumber the Future Receipts,
                                         without first obtaining written consent of Purchaser, which consent may not be unreasonably
                                         withheld.

 

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		r.	Unencumbered
                                         Future Receipts. Merchant has and will continue to have good, complete
                                         and marketable title to all Future Receipts, free and clear of any and all liabilities,
                                         liens, claims, changes, restrictions, conditions, options, rights, mortgages, security
                                         interests, equities, pledges and encumbrances of any kind or nature whatsoever or any
                                         other rights or interests other than by virtue or entering into this Agreement, except
                                         for the first priority senior lien and security interest on the Collateral granted to
                                         Crossroads Financial Group, LLC, pursuant to the Loan and Security Agreement, dated on
                                         or about May 28, 2020 (the “Senior Security Interest”).

 

		s.	Business
                                         Purpose. Merchant is entering into this Agreement solely for business
                                         purposes and not as a consumer for personal, family or household purposes.

 

		t.	No
                                         Default Under Contracts with Third Parties. Merchant’s execution
                                         of and/or performance of its obligations under this Agreement will not cause or create
                                         an event of default by Merchant under any contract, which Merchant is or may become a
                                         party to.

 

		u.	Right
                                         of Access. In order to ensure Merchant’s compliance with the terms
                                         of this Agreement, Merchant hereby grants Purchaser the right to enter, without notice,
                                         the premises of Merchant’s business for the purpose of inspecting and checking
                                         Seller’s transaction processing terminals to ensure the terminals are properly
                                         programmed to submit and or batch Merchant’s weekly receipts to the Processor and
                                         to ensure that Merchant has not violated any other provision of this Agreement. Furthermore,
                                         Merchant hereby grants Purchaser and its employees and consultant’s access to Merchant’s
                                         employees and records and all other items of property located at the Merchant’s
                                         place of business during the term of this Agreement. Merchant hereby agrees to provide
                                         Purchaser, upon request, all and any information concerning Merchant’s business
                                         operations, banking relationships, names and contact information of Merchant’s
                                         suppliers, vendors and landlord(s), to allow Purchaser to interview any of those parties.

 

		v.	Phone Recordings
and Contact. Merchant agrees that any call between Merchant and Purchaser and its owners, managers, employees and
agents may be recorded and/or monitored. Furthermore, Merchant acknowledges and agrees that: (i) it has an established business
relationship with Purchaser, its managers, employees and agents (collectively, the “Purchaser Parties”) and that
Merchant may be contacted by any of the Purchaser Parties from time-to-time regarding Merchant’s performance of its obligations
under this Agreement or regarding other business transactions; (ii) it will not claim that such communications and contacts are
unsolicited or inconvenient; and (iii) that any such contact may be made by any of the Purchaser Parties in person or at any phone
number (including mobile phone number), email addresses, or facsimile number belonging to Merchant’s office, or its owners,
managers, officers, or employees.

 

		w.	Knowledge
                                         and Experience of Decision Makers. The persons authorized to make management
                                         and financial decisions on behalf Merchant with respect to this Agreement have such knowledge,
                                         experience and skill in financial and business matters in general and with respect to
                                         transactions of a nature similar to the one contemplated by this Agreement so as to be
                                         capable of evaluating the merits and risks of, and making an informed business decision
                                         with regard to, Merchant entering into this Agreement.

 

		x.	Merchant’s
                                         Due Diligence. The person authorized to sign this Agreement on behalf
                                         of Merchant: (i) has received all information that such person deemed necessary to make
                                         an informed decision with respect to a transaction contemplated by this Agreement; and
                                         (ii) has had unrestricted opportunity to make such investigation as such person desired
                                         pertaining to the transaction contemplated by this Agreement and verify any such information
                                         furnished to him or her by Purchaser.

 

		y.	Arm-Length
                                         Transaction. The person signing this Agreement of behalf of Merchant:
                                         (a) has read and fully understands content of this Agreement; (b) has consulted to the
                                         extent he/she wished with Merchant’s own counsel in connection with the entering
                                         into this Agreement; (c) he or she has made sufficient investigation and inquiry to determine
                                         whether this Agreement is fair and reasonable to Merchant, and whether this Agreement
                                         adequately reflects his or her understanding of its terms.

 

		z.	No
                                         Reliance on Oral Representations. This Agreement contains the entire agreement
                                         between Merchant and Purchaser with respect to the subject matter of this Agreement and
                                         supersedes each course of conduct previously pursued or acquiesced in, and each oral
                                         agreement and representation previously made, by Purchaser or any of the Purchaser Parties
                                         with respect thereto (if any), whether or not relied or acted upon. No course of performance
                                         or other conduct subsequently pursued or acquiesced in, and no oral agreement or representation
                                         subsequently made, by the Purchaser Parties, whether or not relied or acted upon, and
                                         no usage of trade, whether or not relied or acted upon, shall amend this Agreement or
                                         impair or otherwise affect Merchant’s obligations pursuant to this Agreement or
                                         any rights and remedies of the parties to this Agreement.

 

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		VI.	PLEDGE
                                         OF SECURITY:

 

		18.	Acknowledgment
                                         of Subordinated Security Interest and Security Agreement. The Future Receipts
                                         sold by Merchant to Purchaser pursuant to this Agreement are “accounts” or
                                         “payment intangibles” as those terms are defined in the Uniform Commercial
                                         Code as in effect in the state in which the Merchant is located (the “UCC”)
                                         and such sale shall constitute and shall be construed and treated for all purposes as
                                         a true and complete sale, conveying good title to the Future Receipts free and clear
                                         of any liens and encumbrances, from Merchant to Purchaser. To the extent the Future Receipts
                                         are “accounts” or “payment intangibles” then (i) the sale of
                                         the Future Receipts creates a security interest as defined in the UCC; (ii) this Agreement
                                         constitutes a “security agreement” under the UCC; and (iii) Purchaser has
                                         all the rights of a secured party under the UCC with respect to such Future Receipts.
                                         Merchant further agrees that, with or without an Event of Default, Purchaser may notify
                                         account debtors, or other persons obligated on the Future Receipts, on holding the Future
                                         Receipts of Merchant’s sale of the Future Receipts and may instruct them to make
                                         payment or otherwise render performance to or for the benefit of Purchaser. Notwithstanding
                                         the foregoing, the parties hereto agree that any such security interest conferred hereunder
                                         shall be a second priority subordinated lien and security interest on the Collateral,
                                         subordinated to the Senior Security Interest, pursuant to that certain Collateral Subordination
                                         Agreement, dated on or about May 28, 2020, among Merchant, Purchase and Crossroads Financial
                                         Group, LLC.

 

		19.	Financing
                                         Statements. Merchant authorizes Purchaser to file one or more UCC-1 forms
                                         consistent with the UCC to give notice that the Sold Amount of Future Receipts is the
                                         sole property of Purchaser. The UCC filing may state that such sale is intended to be
                                         a sale and not an assignment for security and may state that Merchant is prohibited from
                                         obtaining any financing that impairs the value of the Sold Amount of Future Receipts
                                         or Purchaser’s right to collect same. Merchant authorizes Purchaser to debit the
                                         Approved Bank Account for all costs incurred by Purchaser associated with the filing,
                                         amendment or termination of any UCC filings.

 

		20.	Security.
                                         As security for the prompt and complete performance of any and all liabilities, obligations,
                                         covenants or agreements of Merchant under this Agreement, now or hereafter arising from,
                                         out of or relating to this Agreement, whether direct, indirect, contingent or otherwise
                                         (hereinafter referred to collectively as the “Merchant Obligations”),
                                         Merchant hereby pledges, assigns and hypothecates to Purchaser and grants to Purchaser
                                         a continuing, perfected and second priority subordinated lien upon and security interest
                                         (the “Subordinated Security Interest”) in, to and under all of Merchant’s
                                         right, title and interest in and to the following (collectively, the “Collateral”),
                                         whether now existing or hereafter from time to time acquired:

 

		a.	all accounts, including
                                         without limitation, all deposit accounts, accounts-receivable, and other receivables,
                                         chattel paper, documents, equipment, general intangibles, instruments, and inventory,
                                         as those terms are defined by Article 9 of the Uniform Commercial Code (the “UCC”),
                                         now or hereafter owned or acquired by Merchant; and

 

		b.	all Merchant’s proceeds, as that term is defined by
Article 9 of the UCC.

 

		21.	Termination
                                         of Pledge. Upon the performance by Merchant in full of the Merchant Obligations,
                                         the Subordinated Security Interest in the Collateral pursuant to this Pledge shall automatically
                                         terminate without any further act of either party being required, and all rights to the
                                         Collateral shall revert to Merchant. Upon any such termination, Purchaser will execute,
                                         acknowledge (where applicable) and deliver such satisfactions, releases and termination
                                         statements, as Merchant shall reasonably request.

 

		22.	Representations
                                         with Respect to Collateral. Merchant hereby represents and warrants to
                                         Purchaser that: the execution, delivery and performance by Merchant of this Pledge, and
                                         the remedies in respect of the Collateral under this Pledge (i) have been duly authorized;
                                         (ii) do not require the approval of any governmental authority or other third party or
                                         require any action of, or filing with, any governmental authority or other third party
                                         to authorize same (other than the filing of the UCC 1’s); (iii) do not and shall
                                         not (A) violate or result in the breach of any provision of law or regulation, any order
                                         or decree of any court or other governmental authority, (B) violate, result in the breach
                                         of or constitute a default under or conflict with any indenture, mortgage, deed of trust,
                                         agreement or any other instrument to which Merchant is a party or by which any of Merchant’s
                                         assets (including, without limitation, the Collateral) are bound.

 

		23.	Further Assurances.
                                         Upon the request of Purchaser, Merchant, at Merchant’s sole cost and expense,
                                         shall execute and deliver all such further UCC-1s, continuation statements, assurances
                                         and assignments of the Collateral and consents with respect to the pledge of the Collateral
                                         and the execution of this Pledge, and shall execute and deliver such further instruments,
                                         agreements and other documents and do such further acts and things, as Purchaser may
                                         request in order to more fully effectuate the purposes of this Pledge and the assignment
                                         of the Collateral and obtain the full benefits of this Pledge and the rights and powers
                                         herein created.

 

		24.	Attorney-in-fact.
                                         Merchant hereby authorizes Purchaser at any time to take any action and to execute
                                         any instrument, including without limitation to file one or more financing statements
                                         and/or continuation statements, to evidence and perfect the Subordinated Security Interest
                                         created hereby and irrevocably appoints Purchaser as its true and lawful attorney-in-fact,
                                         which power of attorney shall be coupled with an interest, with full authority in the
                                         place and stead of Merchant and in the name of Merchant or otherwise, from time to time,
                                         in Purchaser’s sole and absolute discretion, including without limitation (a) for
                                         the purpose of executing such statements in the name of and on behalf of Merchant, and
                                         thereafter filing any such financing and/or continuation statements and (b) to receive,
                                         endorse and collect all instruments made payable to Merchant.

 

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		VII.	EVENTS OF DEFAULT AND REMEDIES:

 

		25.	Events of
                                         Default by Merchant. The occurrence of any of the following events shall constitute
                                         an “Event of Default” by Merchant:

 

		a.	Merchant shall violate any term, condition or covenant
in this Agreement for any reason whatsoever other than as the result of Merchant’s business ceases its operations exclusively
due to any of the Valid Excuses.

 

		b.	Any representation or warranty by Merchant made in
this Agreement shall prove to have been incorrect, false or misleading in any material respect when made.

 

		c.	Merchant shall default under any of the terms, covenants
and conditions of any other agreement with Purchaser (if any).

 

		d.	Merchant uses multiple depository accounts without
obtaining prior written consent of Purchaser in each instance, which consent may not be unreasonably withheld.

 

		e.	Merchant fails to deposit any portion of its Future
Receipts into the Approved Bank Account;

 

		f.	Merchant changes the Approved Bank Account or Approved
Processor without obtaining prior written consent of Purchaser in each instance, which consent may not be unreasonably withheld;

 

		g.	Merchant interferes with Purchaser’s collection of
Weekly Deliveries (or Adjusted Weekly Deliveries, as the case may be.)

 

		h.	Merchant fails to provide timely notice to Purchaser
such that in any given calendar month there are four or more ACH transactions attempted by Purchaser that are rejected by Merchant’s
bank.

 

		26.	Default Under this Agreement. In case
any Event of Default occurs and is not waived by Purchaser, Purchaser may declare Merchant in default under this Agreement.

 

		27.	Merchant’s
                                         Obligations Upon Default. Upon receipt of such default notice, Merchant shall
                                         immediately deliver to Purchaser the portion of the Sold Amount of Future Receipts that
                                         remain undelivered at the time of such default notice together with all other Fees (as
                                         such term is defined below) that Merchant may owe to Purchaser pursuant to this Agreement
                                         (the sum of the then undelivered portion of the Sold Amount of Future Receipts and the
                                         Fees hereinafter shall referred to the “Adjusted Sold Amount of Future Receipts.”)
                                         In addition, Merchant shall also pay to Purchaser, as additional damages, any reasonable
                                         expenses incurred by Purchaser in connection with recovering the monies due to Purchaser
                                         from Merchant pursuant to this Agreement, including without limitation the costs of retaining
                                         collection firms and reasonable attorneys’ fees and disbursements (collectively,
                                         “Reasonable Damages”). The parties agree that Purchaser shall not
                                         be required to itemize or prove its Reasonable Damages and that the fair value of the
                                         Reasonable Damages shall be calculated fifteen percent (15%) of the Adjusted Sold Amount
                                         of Future Receipts at the time of default

 

		28.	Remedies Upon Default. Upon occurrence
of an Event of Default, Purchaser may immediately proceed to protect and enforce its rights under this Agreement against Merchant
by:

 

		a.	Enforcing its rights as a secured creditor under the
Uniform Commercial Code including, without limitation, notifying any account debtor(s) of Merchant of Purchaser’s Subordinated
Security Interest;

 

		b.	Notifying Merchant’s credit card processor of Merchant’s
default under this Agreement and to direct such credit card processor to transfer to Purchaser of all or any portion of the amounts
received by such credit card processor on behalf of Merchant.

 

		c.	Commencing a suit in equity or by action at law, or
both, whether for the specific performance of any covenant, agreement or other provision contained herein, or to enforce the discharge
of Merchant’s obligations hereunder or any other legal or equitable right or remedy including without limitation Purchaser’s rights
of a secured party under the UCC.

 

    Page 11

     

    

 

		29.	Remedies are not Exclusive. All rights,
powers and remedies of Purchaser in connection with this Agreement may be exercised at any time after the occurrence of any Event
of Default, and are cumulative and not exclusive, and shall be in addition to any other rights, powers or remedies provided to
Purchaser by law or equity.

 

		30.	Power of Attorney. Each Merchant irrevocably
appoints Purchaser and its representatives as their respective agents and attorneys-in-fact with full authority to take any action
or execute any instrument or document to do the following: (A) to settle all obligations due to Purchaser from any credit card
processor and/or account debtor(s) of Merchant; (B) upon occurrence of an Event of Default under this Agreement, to perform any
and all such obligations of Merchant under this Agreement, including without limitation (i) to obtain and adjust insurance; (ii)
to collect monies due or to become due under or in respect of any of the Collateral; (iii) to receive, endorse and collect any
checks, notes, drafts, instruments, documents or chattel paper in connection with clause (i) or clause (ii) above; (iv) to sign
Merchant’s name on any invoice, bill of lading, or assignment directing customers or account debtors to make payment directly
to Purchaser; and (v) to file any claims or take any action or institute any proceeding against Merchant which Purchaser may deem
necessary for the collection of any portion of the undelivered Sold Amount of Future Receipts from the Collateral, or otherwise
to enforce its rights under this Agreement.

 

		VIII. 	ADDITIONAL TERMS:

 

		31.	Additional
                                         Fees. In addition to all other sums due to Purchaser under this Agreement, Merchant
                                         shall pay to Purchaser (the sum of all such charges, hereinafter, the “Fee”):

 

		a.	$25,000.00 upon entering into this Agreement as reimbursement
of Purchaser’s costs associated with entering into this Agreement (the cost of due diligence on the Merchant’s business, financial
and legal due diligence, etc.). This section 31(a) is descriptive of and is NOT an additional fee to the $25,000 fee as described
in page two above under “KEY BUSINESS TERMS AND DEFINITIONS”.

 

		b.	$35 in each and every instance when delivery of the
Weekly Delivery to Purchaser has failed due to the insufficient funds in the Merchant’s Approved Account.

 

		c.	$100 in each and every instance when Merchant blocks
Purchaser’s access (or otherwise prevents Purchaser from accessing) Merchant’s bank accounts.

 

		d.	$2,500 in each and every instance when, upon occurrence
of an Event of Default, Purchaser shall have agreed to waive Merchant's default.

 

    Page 12

     

    

 

		32.	Merchant
Deposit Agreement. Merchant shall execute an agreement with Purchaser that would authorize Purchaser to arrange for electronic
fund transfer services and/or “ACH” payments of Weekly Delivery from the Approved Bank Account. Merchant shall provide
Purchaser and/or its authorized agent with all information, authorizations and passwords necessary to verify Merchant’s
receivables, receipts and deposits into the Approved Bank Account. Merchant shall authorize Purchaser and/or it’s agent
to deduct weekly the amounts of Weekly Delivery to Purchaser from settlement amounts which would otherwise be due to Merchant
from electronic check transactions and to pay such amounts to Purchaser by permitting Purchaser to withdraw the Weekly Delivery
from such account. The authorization shall be irrevocable.

 

		33.	Financial
Condition. Merchant authorizes Purchaser and its agents to investigate their financial responsibility and history, and
will provide to Purchaser any bank or financial statements, tax returns, etc., as deems necessary prior to or at any time after
execution of this Agreement. A photocopy of this authorization will be deemed as acceptable for release of financial information.
is authorized to update such information and financial profiles from time to time as it deems appropriate.

 

		34.	Transactional
History. Merchant shall execute written authorization(s) to their bank(s) to provide Purchaser with Merchant’s banking
and/or credit-card processing history.

 

		35.	Indemnification.
Merchant indemnify and hold harmless Approved Processor, its officers, directors and shareholders against all losses, damages,
claims, liabilities and expenses (including reasonable attorney’s fees) incurred by Approved Processor resulting from (a)
claims asserted by Purchaser for monies owed to Purchaser from Merchant and (b) actions taken by Approved Processor in reliance
upon information or instructions provided by Purchaser.

 

		36.	No
Liability. In no event shall Purchaser be liable for any claims asserted by Merchant under any legal theory for lost profits,
lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential damages, each
of which is waived by Merchant.

 

		37.	Right
to Cancel.

 

	 	IX.	Notwithstanding
                                         anything to the contrary set forth in this Agreement, Purchaser shall have the right
                                         to cancel this agreement any time prior to its delivery of the Purchase Price to Merchant
                                         and, upon such cancellation, this Agreement shall become null and void and the parties
                                         shall have no obligation to, or rights against, each other, except that all sums delivered
                                         by Merchant to Purchaser on account of entering into this Agreement shall be promptly
                                         returned to Merchant.

 

	 	X.	Notwithstanding
                                         anything to the contrary set forth in this Agreement, in the event Merchant has not been
                                         in default under this Agreement, Merchant shall have the right to cancel this Agreement
                                         any time until the midnight of the second (2nd) Business Day following the date of its
                                         receipt of the Purchase Price by notifying Purchaser of such cancellation by notice sent
                                         in accordance with this Agreement. Upon timely delivering such cancellation notice to
                                         Purchaser, and further provided that Merchant has otherwise complied with the provisions
                                         of this Agreement, Merchant shall refund the entire amount of the Purchase Price back
                                         to Purchaser within five (5) Business Days following the date of Merchant’s receipt of
                                         the Purchase Price. Upon such refund of the Purchase Price back to Purchaser, this Agreement
                                         shall become null and void and the parties shall have no remaining obligations to or
                                         rights against each other except that Purchaser shall have the right to keep, as fair
                                         and adequate compensation for its costs of entering into this Agreement with Merchant,
                                         the entire amount of Weekly Deliveries as well as the origination fee (as set forth above)
                                         received by Purchaser prior to the date when this Agreement is terminated.

 

		38.	Merchant’s
Other Agreements. Merchant will not dispose, convey, sell or otherwise transfer, or cause Merchant to dispose, convey,
sell or otherwise transfer, any material business assets of Merchant without the prior written consent of Purchaser, which consent
may not be unreasonably withheld, until Purchaser’s receipt of the entire Sold Amount of Future Receipts. Merchant shall
pay to Purchaser upon demand all expenses (including, without limitation, reasonable attorneys’ fees and disbursements)
incurred as the result of, or incidental to, or relating to, the enforcement or protection of Purchaser’s rights against
Merchant under the Agreement. The obligation of the Merchant shall be unconditional and absolute, regardless of the unenforceability
of any provision of any agreement between Merchant and Purchaser, or the existence of any defense, setoff or counterclaim, which
Merchant may assert.

 

MISCELLANEOUS:

 

		39.	Modifications;
Agreements. No modification, amendment, waiver or consent of any provision of this Agreement shall be effective unless
the same shall be in writing and signed by all parties.

 

		40.	Assignment.
Purchaser may assign, transfer or sell its rights or delegate its duties hereunder, either in whole or in part without
prior notice to the Merchant. Merchant shall have the right to assign their respective rights or obligations under this Agreement
without first obtaining Purchaser’s written consent.

 

		41.	Notices.
All notices, requests, consent, demands and other communications hereunder shall be delivered by certified mail, return
receipt requested, to the respective parties to this Agreement at the addresses set forth in this Agreement and shall become effective
as of the date of receipt or declined receipt.

 

    Page 13

     

    

 

		42.	Waiver
Remedies. No failure on the part of any party to exercise, and no delay in exercising, any right under this Agreement,
shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude any other
or further exercise thereof or the exercise of any other right. The remedies provided hereunder are cumulative and not exclusive
of any remedies provided by law or equity.

 

		43.	Binding
Effect. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
permitted assigns.

 

		44.	Governing
Law, Venue and Jurisdiction. This Agreement shall be governed by and construed exclusively in accordance with the laws
of the State of New York, without regards to any applicable principles of conflicts of law. Any lawsuit, action or proceeding
arising out of or in connection with this Agreement shall be instituted exclusively in any court sitting in New York State, (the
“Acceptable Forums”). Each party signing this Agreement agrees that the Acceptable Forums are convenient, and
irrevocably submits to the jurisdiction of the Acceptable Forums and waives any and all objections to inconvenience of the jurisdiction
or venue. Should a proceeding be initiated in any other forum, the parties waive any right to oppose any motion or application
made by either party to transfer such proceeding to an Acceptable Forum.

 

		45.	Survival
of Representation, etc. All representations, warranties and covenants herein shall survive the execution and delivery
of this Agreement and shall continue in full force until all obligations under this Agreement shall have been complied
with and satisfied in full and this Agreement shall have terminated.

 

		46.	Severability.
In case any of the provisions in this Agreement is found to be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of any other provision contained herein shall not in any way be affected or impaired.

 

		47.	Entire
Agreement. Any provision hereof prohibited by law shall be ineffective only to the extent of such prohibition without
invalidating the remaining provisions hereof. This Agreement and all amendments, riders and exhibits thereon (if any) embody the
entire agreement between Merchant and Purchaser and supersede all prior agreements and understandings relating to the subject
matter hereof.

 

		48.	JURY
TRIAL WAIVER. THE PARTIES HERETO WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISING
IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS OF WHICH THIS AGREEMENT IS A PART OR THE ENFORCEMENT HEREOF. THE
PARTIES HERETO ACKNOWLEDGE THAT EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY AFTER
EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS.

 

    Page 14

     

    

 

		49.	CLASS
ACTION WAIVER. THE PARTIES HERETO WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST ANY OTHER PARTY TO THIS AGREEMENT, AS A REPRESENTATIVE
OR MEMBER IN ANY CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW AGAINST PUBLIC POLICY. TO THE EXTENT
ANY PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES
HEREBY AGREE THAT: (1) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED WITH PURSUING
THE CLASS OR REPRESENTATIVE ACTION (NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT TO THE CONTRARY); AND (2) THE PARTY
WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED
THROUGH THE CLASS OR REPRESENTATIVE ACTION.

 

		50.	ARBITRATION.
                                         THE PARTIES ACKNOWLEDGE AND AGREE THAT EACH PURCHASER AND MERCHANT SHALL HAVE THE
                                         RIGHT TO REQUEST THAT ALL DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THE CONSTRUCTION
                                         AND INTERPRETATION OF THIS AGREEMENT ARE SUBMITTED TO ARBITRATION. THE PARTY SEEKING
                                         ARBITRATION SHALL FIRST SEND A WRITTEN NOTICE OF INTENT TO ARBITRATE TO ALL OTHER PARTIES,
                                         BY CERTIFIED MAIL. UPON SENDING OF SUCH NOTICE, A PARTY REQUESTING ARBITRATION MAY COMMENCE
                                         AN ARBITRATION PROCEEDING WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”)
                                         OR NATIONAL ARBITRATION FORUM (“NAF”). MERCHANT AND PURCHASER SHALL
                                         PAY THEIR OWN ATTORNEYS’ FEES INCURRED DURING THE ARBITRATION PROCEEDING. THE PARTY
                                         INITIATING THE ARBITRATION SHALL PAY ANY ARBITRATION FILING FEE, ADMINISTRATION FEE AND
                                         ARBITRATOR’S FEE.

 

		51.	RIGHT
TO OPT OUT OF ARBITRATION. SELLER) MAY OPT OUT OF THE ARBITRATION PROVISION ABOVE. TO OPT OUT OF THE ARBITRATION CLAUSE, SELLER
MUST SEND BUYER A NOTICE THAT THE SELLER DOES NOT WANT THE CLAUSE TO APPLY TO THIS AGREEMENT. FOR ANY OPT OUT TO BE EFFECTIVE,
SELLER MUST SEND AN OPT OUT NOTICE TO THE FOLLOWING ADDRESS BY REGISTERED MAIL, WITHIN 14 DAYS AFTER THE DATE OF THIS AGREEMENT:
TVT Direct – ARBITRATION OPT OUT, 382 Greenwich avenue, Greenwich, CT 06830, ATTENTION: Customer Service.

 

		52.	Captions.
The captions in this Agreement are inserted for convenience of reference only and in no way define, describe or limit
the scope or intent of this contract or any of the provisions hereof.

 

		53.	Counterparts
and Facsimile Signatures. This Agreement can be signed in one or more counterparts, each of which shall constitute an
original and all of which when take together shall constitute one and the same agreement. Signatures delivered via facsimile and/or
via Portable Digital Format (PDF) shall be deemed acceptable for all purposes, including without limitation the evidentially purposes.

 

The balance of this page left intentionally
blank

 

    Page 15

     

    

 

	MERCHANT NAME: 1847 ASIEN INC.	 
	(legal name of the business)	 
	 	 
	By:	/s/ ROBERT DOUGLAS PATTERSON	 
	Name:	ROBERT DOUGLAS PATTERSON	 
	Title:	Chief Ececutive Officer	 
	FEIN:	850755125	 
	 	 
	MERCHANT NAME: ASIEN’S APPLIANCE, INC.	 
	 	 
	By:	/s/ Robert Patterson	 
	Name:	Robert Patterson	 
	Title:	Chief Executive Officer 

FEIN: 20-0736375	 
	 	 
	TVT Direct Funding LLC	 
	 	 
	By:	 	 
	Title:	CEO, TVT Direct Funding LLC	 

 

    Page 16

     

    

 

ADDENDUM TO CONTRACT

 

Addendum
to Agreement of Sale of Future Receipts

 

This
is an addendum (“Addendum”) to that certain Agreement of Sale of Future Receipts (the “Future
Receipts Agreement”) entered into by and among TVT Direct Funding LLC (the “Purchaser”), and 1847 ASIEN
INC. and ASIEN’S APPLIANCE, INC. (together, the “Seller”) dated as of May 28, 2020.

 

WHEREAS,
the Purchaser and Seller wish to modify the Future Receipts Agreement as set forth herein.

 

Now therefore, for good and valuable
consideration, the parties agree as follows:

 

		A.	The
                                         Seller are hereafter referred to collectively as the Merchant (the “Merchant”).

 

		B.	Except
                                         as provided below, it is understood and agreed that the Merchant may settle this Future
                                         Receipts Agreement in full by paying Purchaser the Prepayment Amount before the end of
                                         the relevant month, as set forth below, less the amount of any purchase payments made
                                         prior to the prepayment date, plus any unpaid fees or charges. Month 1 begins on the
                                         first Monday following the date on which Purchaser distributed the advance proceeds to
                                         1847 ASIEN INC.

 

		C.	In
                                         the event Seller chooses not to execute this addendum Purchaser will be entitled to the
                                         full purchased amount to settle in full Sellers obligation under the Future Receipts
                                         Agreement.

 

		D.	Except
                                         as provided in this Addendum, all terms and conditions of the Future Receipts Agreement
                                         shall remain in full force and effect.

 

		E.	This
                                         Addendum shall be bound by the laws of the State of New York.

 

Seller
shall have no right to prepay this Advance if:

 

		●	The
agreement and payments have previously been modified,

 

		●	There
has been a forbearance in payments,

 

		●	There
has been a breach of the Future Receipts Agreement,

 

	Prepayment Term	 	Accepted Prepayment Amount	 
	1	 	$	600,000.00	 
	2	 	$	610,000.00	 
	3	 	$	620,000.00	 

 

All
other terms of the referenced Future Receipts Agreement remain unchanged.

 

By
their signatures below the parties agreed to be bound by this addendum.

 

	ACCEPTED AND AGREED:	 	ACCEPTED AND AGREED:
	 	 	 	 
	Purchaser: TVT Direct Funding LLC	 	Seller: 1847 Asien Inc.
	 	 	 	 
	By:	/s/ Randy
    Saluck	 	By:	/s/ ROBERT DOUGLAS PATTERSON
	Name:	Randy Saluck	 	Name:	ROBERT DOUGLAS PATTERSON
	Title:	CEO, TVT Direct Funding LLC	 	Title:	Chief Executive Officer
	  	 	 	 
	 	 	Seller: Asien’s Appliance, Inc.
	 	 	 	 
	 	 	By:	/s/ ROBERT DOUGLAS PATTERSON
	 	 	Name:	ROBERT DOUGLAS PATTERSON
	 	 	 	 
	 	 	By:	 
	 	 	Title:	 Chief Executive Officer 

 

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