Document:

SHARPSPRING,
INC.

QUATTRO
HOSTING LLC

SHARPSPRING
TECHNOLOGIES, INC.

 

WESTERN
ALLIANCE BANK

 

LOAN
AND SECURITY AGREEMENT

 

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This
Loan And Security Agreement is entered into as of March 21, 2016, by and
between Western Alliance Bank (“Bank”) and SharpSpring, Inc. (“Parent”), Quattro Hosting LLC (“Quattro”),
and SharpSpring Technologies, Inc. (“SharpSpring Technologies”). Parent, Quattro, and SharpSpring Technologies are
each referred to herein as a “Borrower”, and collectively, as the “Borrowers”.

 

Recitals

 

Borrowers
wish to obtain credit from time to time from Bank, and Bank desires to extend credit to Borrowers. This Agreement sets forth the
terms on which Bank will advance credit to Borrowers, and Borrowers will repay the amounts owing to Bank.

 

Agreement

 

The
parties agree as follows:

 

1.
Definitions and Construction.

 

1.1
Definitions. As used in this Agreement, the following terms shall have the following definitions:

 

“Accounts”
means all presently existing and hereafter arising accounts, contract rights, payment intangibles, and all other forms of obligations
owing to a Borrower arising out of the sale or lease of goods (including, without limitation, the licensing of software and other
technology) or the rendering of services by a Borrower, whether or not earned by performance, and any and all credit insurance,
guaranties, and other security therefor, as well as all merchandise returned to or reclaimed by a Borrower and such Borrower’s
Books relating to any of the foregoing.

 

“Adjusted
EBITDA” means Parent’s and its Subsidiaries’ consolidated earnings before interest, taxes, depreciation and
amortization expenses, each as determined by GAAP, with such adjustments for non-cash stock-based compensation expenses, one-time
acquisition-related charges (including earn out payments) with respect to Parent’s acquisitions of SharpSpring or GraphicMail,
foreign exchange gains or losses, and other adjustments as may be approved by Bank on a case by case basis.

 

“Advance”
or “Advances” means a cash advance or cash advances under the Revolving Facility.

 

“Affiliate”
means, with respect to any Person, any Person that owns or controls directly or indirectly such Person, any Person that controls
or is controlled by or is under common control with such Person, and each of such Person’s senior executive officers, directors,
and partners.

 

“Bank
Expenses” means all reasonable: costs or expenses (including reasonable attorneys’ fees and expenses) incurred in
connection with the preparation, negotiation, administration, and enforcement of the Loan Documents; Collateral audit fees; and
Bank’s attorneys’ fees and expenses incurred in amending, enforcing or defending the Loan Documents (including fees
and expenses of appeal), incurred before, during and after an Insolvency Proceeding, whether or not suit is brought.

 

“Borrower’s
Books” means all of a Borrower’s books and records including: ledgers; records concerning a Borrower’s assets
or liabilities, the Collateral, business operations or financial condition; and all computer programs, or tape files, and the
equipment, containing such information.

 

“Borrowing
Base” means an amount equal to Borrowers’ trailing three (3) months of Monthly Recurring Revenue as of the last day
of the most recently completed month, multiplied by the lesser of (i) one hundred percent (100%) or (ii) the MRR Retention Rate,
as determined by Bank with reference to the most recent Borrowing Base Certificate delivered by Borrowers; provided however, that
the Borrowing Base may be revised from time to time by Bank following each Collateral audit or as Bank deems necessary in Bank’s
reasonable judgment and upon notification thereof to Borrowers.

 

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“Business
Day” means any day that is not a Saturday, Sunday, or other day on which banks in the State of California are authorized
or required to close.

 

“Cash
Management Sublimit” means a sublimit for cash management transactions under the Revolving Line not to exceed Four Hundred
Thousand Dollars ($400,000).

 

“Change
in Control” shall mean a transaction in which (i) any “person” or “group” (within the meaning of
Section 13(d) and 14(d)(2) of the Securities Exchange Act of 1934) becomes the “beneficial owner” (as defined in Rule
13d-3 under the Securities Exchange Act of 1934), directly or indirectly, of a sufficient number of shares of all classes of stock
then outstanding of Parent ordinarily entitled to vote in the election of directors, empowering such “person” or “group”
to elect a majority of the Board of Directors of a Borrower, who did not have such power before such transaction, or (ii) Parent
ceases to directly or indirectly own all of the outstanding capital stock of any other Borrower.

 

“Closing
Date” means the date of this Agreement.

 

“Code”
means the California Uniform Commercial Code.

 

“Collateral”
means the property described on Exhibit A attached hereto.

 

“Contingent
Obligation” means, as applied to any Person, any direct or indirect liability, contingent or otherwise, of that Person with
respect to (i) any indebtedness, lease, dividend, letter of credit or other obligation of another; (ii) any obligations with respect
to undrawn letters of credit, corporate credit cards, or merchant services issued or provided for the account of that Person;
and (iii) all obligations arising under any agreement or arrangement designed to protect such Person against fluctuation in interest
rates, currency exchange rates or commodity prices; provided, however, that the term “Contingent Obligation” shall
not include endorsements for collection or deposit in the ordinary course of business. The amount of any Contingent Obligation
shall be deemed to be an amount equal to the stated or determined amount of the primary obligation in respect of which such Contingent
Obligation is made or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined
by Bank in good faith; provided, however, that such amount shall not in any event exceed the maximum amount of the obligations
under the guarantee or other support arrangement.

 

“Contracts”
means subscription license contracts, maintenance contracts and support contracts or other contractual arrangements of Borrowers.

 

“Copyrights”
means any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship
and derivative work thereof.

 

“Credit
Extension” means each Advance, use of the Cash Management Sublimit, or any other extension of credit by Bank for the benefit
of Borrowers hereunder.

 

“Daily
Balance” means the amount of the Obligations owed at the end of a given day.

 

“Eligible
Recurring Revenue Contracts” means Contracts yielding monthly recurring revenue recognized in accordance with GAAP, provided,
that standards of eligibility may be fixed and revised from time to time by Bank in Bank’s reasonable judgment and upon
notification thereof to Borrowers in accordance with the provisions hereof. Unless otherwise agreed to by Bank, Eligible Recurring
Revenue Contracts shall not include the following:

 

(a)
Contracts for which the customer thereunder has failed to pay to the Borrower any amounts due to Borrower under any of such Contracts
within ninety (90) days from the invoice date;

 

(b)
Contracts which the customer thereunder has elected to cancel or has failed to renew within the time period prescribed in such
Contracts;

 

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(c)
Contracts with respect to which the customer is subject to any Insolvency Proceeding, or becomes insolvent or goes out of business;
or

 

(d)
Contracts with respect to any customer outside of the United States (other than Canada) that are billed or collected outside of
the United States.

 

“Equipment”
means all present and future machinery, equipment, tenant improvements, furniture, fixtures, vehicles, tools, parts and attachments
in which a Borrower has any interest.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, and the regulations thereunder.

 

“Event
of Default” has the meaning assigned in Article 8.

 

“GAAP”
means generally accepted accounting principles in the United State as in effect from time to time.

 

“Indebtedness”
means (a) all indebtedness for borrowed money or the deferred purchase price of property or services, including without limitation
reimbursement and other obligations with respect to surety bonds and letters of credit, (b) all obligations evidenced by notes,
bonds, debentures or similar instruments, (c) all capital lease obligations and (d) all Contingent Obligations.

 

“Insolvency
Proceeding” means any proceeding commenced by or against any person or entity under any provision of the United States Bankruptcy
Code, as amended, or under any other bankruptcy or insolvency law, including assignments for the benefit of creditors, formal
or informal moratoria, compositions, extension generally with its creditors, or proceedings seeking reorganization, arrangement,
or other relief.

 

“Intellectual
Property Collateral” means all of a Borrower’s right, title, and interest in and to the following: Copyrights, Trademarks
and Patents; all trade secrets, all design rights, claims for damages by way of past, present and future infringement of any of
the rights included above, all licenses or other rights to use any of the Copyrights, Patents or Trademarks, and all license fees
and royalties arising from such use to the extent permitted by such license or rights; all amendments, renewals and extensions
of any of the Copyrights, Trademarks or Patents; and all proceeds and products of the foregoing, including without limitation
all payments under insurance or any indemnity or warranty payable in respect of any of the foregoing.

 

“Inventory”
means all inventory in which a Borrower has or acquires any interest, including work in process and finished products intended
for sale or lease or to be furnished under a contract of service, of every kind and description now or at any time hereafter owned
by or in the custody or possession, actual or constructive, of a Borrower, including such inventory as is temporarily out of its
custody or possession or in transit and including any returns upon any accounts or other proceeds, including insurance proceeds,
resulting from the sale or disposition of any of the foregoing and any documents of title representing any of the above, and a
Borrower’s Books relating to any of the foregoing.

 

“Investment”
means any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance
or capital contribution to any Person.

 

“Lien”
means any mortgage, lien, deed of trust, charge, pledge, security interest or other encumbrance.

 

“Loan
Documents” means, collectively, this Agreement, any note or notes, and any other documents, instruments or agreements entered
into by a Borrower or any guarantor or other third party in connection with this Agreement, all as amended or extended from time
to time.

 

“Material
Adverse Effect” means a material adverse effect on (i) the business operations, condition (financial or otherwise) or prospects
of Parent and its Subsidiaries taken as a whole or (ii) the ability of Borrowers to repay the Obligations or otherwise perform
its obligations under the Loan Documents or (iii) the value or priority of Bank’s security interests in the Collateral.

 

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“Monthly
Recurring Revenue” means, with respect to any measurement period, monthly recurring revenue recognized in accordance with
GAAP during such period from Eligible Recurring Revenue Contracts.

 

“MRR
Retention Rate” means as of the last day of a month, the ratio, expressed as a percentage, of (i) the average Monthly Recurring
Revenue for the trailing three (3) months ending on such date divided by (ii) the average Monthly Recurring Revenue for the trailing
twelve (12) months ending on such date.

 

“Negotiable
Collateral” means all letters of credit of which a Borrower is a beneficiary, notes, drafts, instruments, securities, documents
of title, and chattel paper, and such each Borrower’s Books relating to any of the foregoing.

 

“Obligations”
means all debt, principal, interest, Bank Expenses and other amounts owed to Bank by Borrowers pursuant to this Agreement or any
other agreement, whether absolute or contingent, due or to become due, now existing or hereafter arising, including any interest
that accrues after the commencement of an Insolvency Proceeding and including any debt, liability, or obligation owing from Borrowers
to others that Bank may have obtained by assignment or otherwise.

 

“Patents”
means all patents, patent applications and like protections including without limitation improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

 

“Periodic
Payments” means all installments or similar recurring payments that Borrowers may now or hereafter become obligated to pay
to Bank pursuant to the terms and provisions of any instrument, or agreement now or hereafter in existence between Borrowers and
Bank.

 

“Permitted
Indebtedness” means:

 

(a)
Indebtedness of Borrowers in favor of Bank arising under this Agreement or any other Loan Document;

 

(b)
unsecured Indebtedness owing to trade creditors in the ordinary course of business;

 

(c)
Indebtedness owing by a Borrower to any other Borrower or any Subsidiary of a Borrower;

 

(d)
Indebtedness owing by a Subsidiary to a Borrower that constitutes Permitted Investments under clause (c) of such defined term;

 

(e)
Indebtedness existing on the Closing Date and disclosed in the Schedule;

 

(f)
Indebtedness secured by a lien described in clause (c) of the defined term “Permitted Liens,” provided (i) such
Indebtedness does not exceed the lesser of the cost or fair market value of the equipment financed with such Indebtedness and
(ii) the aggregate amount of such Indebtedness does not exceed the amount outstanding as of the Closing Date at any given time;
and

 

(g)
Subordinated Debt.

 

“Permitted
Investment” means:

 

(a)
Investments existing on the Closing Date disclosed in the Schedule; and

 

(b)
(i) marketable direct obligations issued or unconditionally guaranteed by the United States of America or any agency or any
State thereof maturing within one (1) year from the date of acquisition thereof, (ii) commercial paper maturing no more than one
(1) year from the date of creation thereof and currently having rating of at least A-2 or P-2 from either Standard & Poor’s
Corporation or Moody’s Investors Service, (iii) certificates of deposit maturing no more than one (1) year from the date
of investment therein issued by Bank and (iv) Bank’s money market accounts; and

 

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(c)
Investments of Borrowers to any Subsidiary that is not a Borrower hereunder, in an aggregate amount not to exceed $600,000.

 

“Permitted
Liens” means the following:

 

(a)
Any Liens existing on the Closing Date and disclosed in the Schedule or arising under this Agreement or the other Loan Documents;

 

(b)
Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested in good
faith by appropriate proceedings, provided the same have no priority over any of Bank’s security interests;

 

(c)
Liens (i) upon or in any equipment which was not financed by Bank acquired or held by Borrowers or any of its Subsidiaries
to secure the purchase price of such equipment or indebtedness incurred solely for the purpose of financing the acquisition or
leasing of such equipment, or (ii) existing on such equipment at the time of its acquisition or lease, provided that the Lien
is confined solely to the property so acquired or leased and improvements thereon, and the proceeds of such equipment;

 

(d)
Liens incurred in connection with the extension, renewal or refinancing of the indebtedness secured by Liens of the type described
in clauses (a) through (c) above, provided that any extension, renewal or replacement Lien shall be limited to the property encumbered
by the existing Lien and the principal amount of the indebtedness being extended, renewed or refinanced does not increase; and

 

(e)
Lien against the capital stock of SharpSpring Technologies owned by Parent in favor of RCTW, LLC (fka SharpSpring, LLC) (the
“Stock Lien”), securing an earn-out liability owing by Parent arising from the asset purchase by Parent in 2014, which,
as of the Closing Date, the remaining payment due is $5,000,000, of which $1,000,000 will be paid in cash and $4,000,000 will
be paid in stock during the second calendar quarter of 2016; and upon such payment such Lien will be terminated.

 

“Person”
means any individual, sole proprietorship, partnership, limited liability company, joint venture, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or governmental agency.

 

“Prime
Rate” means the greater of three and one half percent (3.50%) or the Prime Rate published in the Money Rates section of
the Western Edition of The Wall Street Journal, or such other rate of interest publicly announced from time to time by Bank as
its Prime Rate.

 

“Responsible
Officer” means each of the Chief Executive Officer, the Chief Operating Officer, the Chief Financial Officer and the Controller
of each Borrower.

 

“Revolving
Facility” means the facility under which Borrowers may request Bank to issue Advances, as specified in Section 2.1(a) hereof.

 

“Revolving
Line” means a credit extension of up to Two Million Five Hundred Thousand U.S. Dollars ($2,500,000).

 

“Revolving
Maturity Date” means the second anniversary of the Closing Date.

 

“Schedule”
means the schedule of exceptions attached hereto and approved by Bank, if any.

 

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“Shares”
is (i) one hundred percent (100%) of the issued and outstanding capital stock, membership units or other securities owned or held
of record by a Borrower or any Subsidiary of Borrower, in any domestic Subsidiary, or (ii) sixty five percent (65%) of the issued
and outstanding capital stock, membership units or other securities owned or held of record by a Borrower or any Subsidiary of
Borrower, in any foreign Subsidiary; provided however that the Shares shall not include the capital stock, membership units or
other securities that are subject to the Stock Lien (the “Pledged Shares”) until such Lien is released, and upon the
satisfaction of the obligations secured by the Stock Lien, the Shares shall automatically include the Pledged Shares.

 

“Subordinated
Debt” means any debt incurred by Borrowers that is subordinated to the debt owing by Borrowers to Bank on terms acceptable
to Bank (and identified as being such by Borrowers and Bank), pursuant to a subordination agreement in form and substance satisfactory
to Bank.

 

“Subsidiary”
means, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries (including any Affiliate), or both, by such Person. Unless the context otherwise requires,
each reference to a Subsidiary herein shall be a reference to a Subsidiary of Borrower.

 

“Trademarks”
means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same
and like protections, and the entire goodwill of the business of Borrowers connected with and symbolized by such trademarks.

 

1.2
Accounting Terms. All accounting terms not specifically defined herein shall be construed in accordance with GAAP and all
calculations made hereunder shall be made in accordance with GAAP. When used herein, the terms “financial statements”
shall include the notes and schedules thereto.

 

2.
Loan and Terms Of Payment.

 

2.1
Credit Extensions.

 

Each
Borrower promises to pay to the order of Bank, in lawful money of the United States of America, the aggregate unpaid principal
amount of all Credit Extensions made by Bank to Borrowers hereunder. Borrowers shall also pay interest on the unpaid principal
amount of such Credit Extensions at rates in accordance with the terms hereof.

 

(a)
Revolving Advances.

 

(i)
Subject to and upon the terms and conditions of this Agreement, Borrowers may request Advances in an aggregate outstanding
amount not to exceed the lesser of (i) the Revolving Line or (ii) the Borrowing Base, minus, in each case, the amount of
services being provided under the Cash Management Sublimit. Subject to the terms and conditions of this Agreement, amounts borrowed
pursuant to this Section 2.1(a) may be repaid and reborrowed at any time prior to the Revolving Maturity Date, at which time all
Advances under this Section 2.1(a) shall be immediately due and payable. Borrowers may prepay any Advances without penalty or
premium.

 

(ii)
Whenever Borrowers desire an Advance, Borrowers will notify Bank no later than 3:00 p.m. Pacific Time, on the Business Day
that the Advance is to be made. Each such notification shall be made (i) by telephone or in-person followed by written confirmation
from Borrowers within 24 hours, (ii) by electronic mail or facsimile transmission, or (iii) by delivering to Bank a Revolving
Advance Request Form in substantially the form of Exhibit B hereto. Bank is authorized to make Advances under this Agreement,
based upon instructions received from a Responsible Officer or a designee of a Responsible Officer, or without instructions if
in Bank’s discretion such Advances are necessary to meet Obligations which have become due and remain unpaid. Bank shall
be entitled to rely on any notice given by a person who Bank reasonably believes to be a Responsible Officer or a designee thereof,
and Borrowers shall indemnify and hold Bank harmless for any damages or loss suffered by Bank as a result of such reliance. Bank
will credit the amount of Advances made under this Section 2.1(a) to a Borrower’s deposit account with Bank.

 

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(b)
Cash Management Sublimit. Subject to the terms and conditions of this Agreement and availability under the Revolving Line
and the Borrowing Base, Borrowers may request cash management services which may include merchant services, business credit card,
automated clearing house transactions, controlled disbursement accounts and check cashing services identified in various cash
management services agreements related to such services (the “Cash Management Services”) by delivering to Bank such
applications on Bank’s standard forms as requested by Bank; provided, however, that the total amount of the Cash Management
Services shall not exceed the Cash Management Sublimit, and that availability under the Revolving Line shall be reduced by the
entire amount of services provided under the Cash Management Sublimit. In addition, Bank may, in its sole discretion, charge as
Advances any amounts that become due or owing to Bank in connection with the Cash Management Services. If at any time the Revolving
Facility is terminated or otherwise ceases to exist, Borrowers shall immediately secure to Bank’s satisfaction its obligations
with respect to any Cash Management Services, and, effective as of such date, the balance in any deposit accounts held by Bank
and the certificates of deposit issued by Bank in a Borrower’s name (and any interest paid thereon or proceeds thereof,
including any amounts payable upon the maturity or liquidation of such certificates), shall automatically secure such obligations
to the extent of the then outstanding Cash Management Services. Each Borrower authorizes Bank to hold such balances in pledge
and to decline to honor any drafts thereon or any requests by a Borrower or any other Person to pay or otherwise transfer any
part of such balances for so long as the Cash Management Services continue.

 

2.2
Over advances. If the aggregate amount of the outstanding Advances plus the amount of services provided under the
Cash Management Sub limit exceeds the lesser of the Revolving Line or the Borrowing Base at any time, Borrowers shall
immediately pay to Bank, in cash, the amount of such excess.

 

2.3
Interest Rates, Payments, and Calculations.

 

(a)
Interest Rates.

 

(i)
Advances. Except as set forth in Section 2.3(b), the Advances shall bear interest, on the outstanding Daily Balance thereof,
at a per annum rate equal to one and three quarters of one percent (1.75%) above the Prime Rate.

 

(b)
Late Fee; Default Rate. If any payment is not made within ten (10) days after the date such payment is due, Borrowers shall
pay Bank a late fee equal to the lesser of (i) five percent (5%) of the amount of such unpaid amount or (ii) the maximum amount
permitted to be charged under applicable law, not in any case to be less than $25.00. All Obligations shall bear interest, from
and after the occurrence and during the continuance of an Event of Default, at a rate equal to five (5) percentage points above
the interest rate applicable immediately prior to the occurrence of the Event of Default.

 

(c)
Payments. Interest hereunder shall be due and payable on the tenth calendar day of each month during the term hereof. Bank
shall, at its option, charge such interest, all Bank Expenses, and all Periodic Payments against any of Borrower’s deposit
accounts or against the Revolving Line, in which case those amounts shall thereafter accrue interest at the rate then applicable
hereunder. Any interest not paid when due shall be compounded by becoming a part of the Obligations, and such interest shall thereafter
accrue interest at the rate then applicable hereunder. All payments shall be free and clear of any taxes, withholdings, duties,
impositions or other charges, to the end that Bank will receive the entire amount of any Obligations payable hereunder, regardless
of source of payment.

 

(d)
Computation. In the event the Prime Rate is changed from time to time hereafter, the applicable rate of interest hereunder
shall be increased or decreased, effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime
Rate. All interest chargeable under the Loan Documents shall be computed on the basis of a three hundred sixty (360) day year
for the actual number of days elapsed.

 

2.4
Crediting Payments. Prior to the occurrence of an Event of Default, Bank shall credit a wire transfer of funds, check or other
item of payment to such deposit account or Obligation as Borrowers specify. After the occurrence of an Event of Default, the receipt
by Bank of any wire transfer of funds, check, or other item of payment shall be immediately applied to conditionally reduce Obligations,
but shall not be considered a payment on account unless such payment is of immediately available federal funds or unless and until
such check or other item of payment is honored when presented for payment. Notwithstanding anything to the contrary contained
herein, any wire transfer or payment received by Bank after 12:00 noon Pacific time shall be deemed to have been received by Bank
as of the opening of business on the immediately following Business Day. Whenever any payment to Bank under the Loan Documents
would otherwise be due (except by reason of acceleration) on a date that is not a Business Day, such payment shall instead be
due on the next Business Day, and additional fees or interest, as the case may be, shall accrue and be payable for the period
of such extension.

 

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2.5
Fees. Borrowers shall pay to Bank the following:

 

(a)
Facility Fees. On the Closing Date and on each anniversary of the Closing Date for so long as the Revolving Facility is in
effect, a fee with respect to the Revolving Facility equal to $15,000, each of which are fully earned and nonrefundable; and

 

(b)
Bank Expenses. On the Closing Date, all Bank Expenses incurred through the Closing Date, including attorneys’ fees and
expenses and, after the Closing Date, all Bank Expenses, including attorneys’ fees and expenses, as and when they are incurred
by Bank.

 

2.6
Term. This Agreement shall become effective on the Closing Date and, subject to Section 13.7, shall continue in full force
and effect for so long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions under this Agreement.
Notwithstanding the foregoing, Bank shall have the right to terminate its obligation to make Credit Extensions under this Agreement
immediately and without notice upon the occurrence and during the continuance of an Event of Default. Notwithstanding termination,
Bank’s Lien on the Collateral shall remain in effect for so long as any Obligations are outstanding.

 

2.7
Extension of Maturity. Notwithstanding anything contained herein to the contrary, Bank shall have the right, in its sole and
absolute discretion, to extend the Revolving Maturity Date to the tenth day of the month next following the actual Revolving Maturity
Date as stated in this Agreement.

 

3.
Conditions of Loans.

 

3.1
Conditions Precedent to Initial Credit Extension. The obligation of Bank to make the initial Credit Extension is subject to
the condition precedent that Bank shall have received, in form and substance satisfactory to Bank, the following:

 

(a)
this Agreement;

 

(b)
a certificate of the Secretary of each Borrower with respect to incumbency and resolutions authorizing the execution and delivery
of this Agreement;

 

(c)
UCC National Form Financing Statements;

 

(d)
an intellectual property security agreement;

 

(e)
good standing certificate(s) or other evidence of foreign qualification from each state in which a Borrower is foreign qualified;

 

(f)
agreement to provide insurance;

 

(g)
payment of the fees and Bank Expenses then due specified in Section 2.5 hereof;

 

(h)
current financial statements of Borrowers;

 

(i)
delivery of the share certificates representing the Shares held by a Borrower, if certificated, and duly executed stock powers;

 

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(j)
Borrowers’ Financial Plan for 2016;

 

(k)
an audit of the Collateral, the results of which shall be satisfactory to Bank;

 

(l)
such other documents, and completion of such other matters, as Bank may reasonably deem necessary or appropriate.

 

3.2
Conditions Precedent to all Credit Extensions. The obligation of Bank to make each Credit Extension, including the initial
Credit Extension, is further subject to the following conditions:

 

(a)
timely receipt by Bank of the Advance Request Form as provided in Section 2.1; and

 

(b)
the representations and warranties contained in Section 5 shall be true and correct in all material respects on and as of
the date of such Advance Request Form and on the effective date of each Credit Extension as though made at and as of each such
date, and no Event of Default shall have occurred and be continuing, or would exist after giving effect to such Credit Extension.
The making of each Credit Extension shall be deemed to be a representation and warranty by Borrower on the date of such Credit
Extension as to the accuracy of the facts referred to in this Section 3.2.

 

4.
Creation of Security Interest.

 

4.1
Grant of Security Interest. Each Borrower grants and pledges to Bank a continuing security interest in all presently existing
and hereafter acquired or arising Collateral in order to secure prompt repayment of any and all Obligations and in order to secure
prompt performance by such Borrower of each of its covenants and duties under the Loan Documents. Such security interest constitutes
a valid, first priority security interest in the presently existing Collateral, and will constitute a valid, first priority security
interest in Collateral acquired after the date hereof.

 

4.2
Delivery of Additional Documentation Required. Borrowers shall from time to time execute and deliver to Bank, at the request
of Bank, all Negotiable Collateral, all financing statements and other documents that Bank may reasonably request, in form satisfactory
to Bank, to perfect and continue the perfection of Bank’s security interests in the Collateral and in order to fully consummate
all of the transactions contemplated under the Loan Documents. Borrowers from time to time may deposit with Bank specific time
deposit accounts to secure specific Obligations. Each Borrower authorizes Bank to hold such balances in pledge and to decline
to honor any drafts thereon or any request by a Borrower or any other Person to pay or otherwise transfer any part of such balances
for so long as the Obligations are outstanding.

 

4.3
Right to Inspect. Bank (through any of its officers, employees, or agents) shall have the right, upon reasonable prior notice,
from time to time during Borrowers’ usual business hours but no more than once a year (unless an Event of Default has occurred
and is continuing), to inspect a Borrower’s Books and to make copies thereof and to check, test, and appraise the Collateral
in order to verify each Borrower’s financial condition or the amount, condition of, or any other matter relating to, the
Collateral.

 

4.4
Pledge of Shares. Each Borrower hereby pledges, assigns and grants to Bank, a security interest in all the Shares, together
with all proceeds and substitutions thereof, all cash, stock and other moneys and property paid thereon, all rights to subscribe
for securities declared or granted in connection therewith, and all other cash and noncash proceeds of the foregoing, as security
for the performance of the Obligations. On the Closing Date, or, to the extent not certificated as of the Closing Date, within
ten (10) days of the certification of any Shares, the certificate or certificates for the Shares will be delivered to Bank, accompanied
by an instrument of assignment duly executed in blank by Borrowers. To the extent required by the terms and conditions governing
the Shares, Borrowers shall cause the books of each entity whose Shares are part of the Collateral and any transfer agent to reflect
the pledge of the Shares. Upon the occurrence of an Event of Default hereunder, Bank may effect the transfer of any securities
included in the Collateral (including but not limited to the Shares) into the name of Bank and cause new (as applicable) certificates
representing such securities to be issued in the name of Bank or its transferee. Borrowers will execute and deliver such documents,
and take or cause to be taken such actions, as Bank may reasonably request to perfect or continue the perfection of Bank’s
security interest in the Shares. Unless an Event of Default shall have occurred and be continuing, Borrowers shall be entitled
to exercise any voting rights with respect to the Shares and to give consents, waivers and ratifications in respect thereof, provided
that no vote shall be cast or consent, waiver or ratification given or action taken which would be inconsistent with any of the
terms of this Agreement or which would constitute or create any violation of any of such terms. All such rights to vote and give
consents, waivers and ratifications shall terminate upon the occurrence and continuance of an Event of Default.

 

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5.
Representations and Warranties.

 

Each
Borrower represents and warrants as follows:

 

5.1
Due Organization and Qualification. Each Borrower and each Subsidiary is a corporation duly existing under the laws of its
state of incorporation and qualified and licensed to do business in any state in which the conduct of its business or its ownership
of property requires that it be so qualified.

 

5.2
Due Authorization; No Conflict. The execution, delivery, and performance of the Loan Documents are within each Borrower’s
powers, have been duly authorized, and are not in conflict with nor constitute a breach of any provision contained in a Borrower’s
Certificate/Articles of Incorporation or Bylaws, nor will they constitute an event of default under any material agreement to
which a Borrower is a party or by which a Borrower is bound. No Borrower is in default under any material agreement to which it
is a party or by which it is bound.

 

5.3
No Prior Encumbrances. Each Borrower has good and marketable title to its property, free and clear of Liens, except for Permitted
Liens.

 

5.4
Bona Fide Eligible Recurring Revenue Contracts. The Eligible Recurring Revenue Contracts are bona fide existing contractual
obligations. Borrowers have not received notice of an actual or imminent Insolvency Proceeding commenced by or against any customer
of any Borrower whose Contracts are included in any Borrowing Base Certificate as an Eligible Recurring Revenue Contract. 

 

5.5
Merchantable Inventory. All Inventory is in all material respects of good and marketable quality, free from all material defects,
except for Inventory for which adequate reserves have been made.

 

5.6
Intellectual Property Collateral. Each Borrower is the sole owner of the Intellectual Property Collateral, except for non-exclusive
licenses granted by a Borrower to its customers in the ordinary course of business. Each of the Patents is valid and enforceable,
and no part of the Intellectual Property Collateral has been judged invalid or unenforceable, in whole or in part, and no claim
has been made that any part of the Intellectual Property Collateral violates the rights of any third party. Except as set forth
in the Schedule, each Borrower’s rights as a licensee of intellectual property do not give rise to more than five percent
(5%) of its gross revenue in any given month, including without limitation revenue derived from the sale, licensing, rendering
or disposition of any product or service. Except as set forth in the Schedule, no Borrower is a party to, or bound by, any agreement
that restricts the grant by such Borrower of a security interest in such Borrower’s rights under such agreement.

 

5.7
Names; Locations. Except as disclosed in the Schedule, no Borrower has done business under any name other than that specified
on the signature page hereof within the five (5) year period prior to the Closing Date. The chief executive office of each Borrower
is located at the address indicated in Section 10 hereof. All of Borrowers’ Inventory and Equipment is located only at the
locations set forth in Section 10 hereof.

 

5.8
Litigation. Except as set forth in the Schedule, there are no actions or proceedings pending by or against a Borrower or any
Subsidiary before any court or administrative agency.

 

5.9
No Material Adverse Change in Financial Statements. All consolidated and consolidating financial statements related to Borrowers
and any Subsidiary that Bank has received from Borrowers fairly present in all material respects Borrowers’ financial condition
as of the date thereof and Borrowers’ consolidated and consolidating results of operations for the period then ended in
accordance with GAAP. There has not been a material adverse change in the consolidated or the consolidating financial condition
of Borrowers since the date of the most recent of such financial statements submitted to Bank.

 

    	 	11	 

    	 

    

 

5.10
Solvency, Payment of Debts. Each Borrower is solvent and able to pay its debts (including trade debts) as they mature.

 

5.11
Regulatory Compliance. Each Borrower and each Subsidiary have met the minimum funding requirements of ERISA with respect to
any employee benefit plans subject to ERISA, and no event has occurred resulting from a Borrower’s failure to comply with
ERISA that could result in Borrower’s incurring any material liability thereunder. No Borrower is an “investment company”
or a company “controlled” by an “investment company” within the meaning of the Investment Company Act
of 1940. No Borrower is engaged principally, or as one of its important activities, in the business of extending credit for the
purpose of purchasing or carrying margin stock (within the meaning of Regulations T and U of the Board of Governors of the Federal
Reserve System). Each Borrower has complied with all the provisions of the Federal Fair Labor Standards Act. No Borrower has violated
any statutes, laws, ordinances or rules applicable to it, the violation of which could have a Material Adverse Effect.

 

5.12
Environmental Condition. None of Borrowers’ or any Subsidiary’s properties or assets has ever been used by a Borrower
or any Subsidiary or, to the best of Borrowers’ knowledge, by previous owners or operators, in the disposal of, or to produce,
store, handle, treat, release, or transport, any hazardous waste or hazardous substance other than in accordance with applicable
law; to the best of Borrowers’ knowledge, none of Borrowers’ properties or assets has ever been designated or identified
in any manner pursuant to any environmental protection statute as a hazardous waste or hazardous substance disposal site, or a
candidate for closure pursuant to any environmental protection statute; no lien arising under any environmental protection statute
has attached to any revenues or to any real or personal property owned by a Borrower or any Subsidiary; and neither Borrower nor
any Subsidiary has received a summons, citation, notice, or directive from the Environmental Protection Agency or any other federal,
state or other governmental agency concerning any action or omission by a Borrower or any Subsidiary resulting in the releasing,
or otherwise disposing of hazardous waste or hazardous substances into the environment.

 

5.13
Taxes. Each Borrower and each Subsidiary have filed or caused to be filed all tax returns required to be filed, and have paid,
or have made adequate provision for the payment of, all taxes reflected therein.

 

5.14
Subsidiaries. Except as set forth on the Schedule, no Borrower owns any stock, partnership interest or other equity securities
of any Person, except for Permitted Investments.

 

5.15
Government Consents. Each Borrower and each Subsidiary have obtained all material consents, approvals and authorizations of,
made all declarations or filings with, and given all notices to, all governmental authorities that are necessary for the continued
operation of such Borrower’s business as currently conducted.

 

5.16
Operating, Depository and Investment Accounts. None of a Borrower’s nor any Subsidiary’s operating, depository
or investment accounts are maintained or invested with a Person other than Bank.

 

5.17
Shares. Each Borrower has full power and authority to create a first lien on the Shares and no disability or contractual obligation
exists that would prohibit such Borrower from pledging the Shares pursuant to this Agreement. To Borrowers’ knowledge, there
are no subscriptions, warrants, rights of first refusal or other restrictions on transfer relative to, or options exercisable
with respect to the Shares. The Shares have been and will be duly authorized and validly issued, and are fully paid and non-assessable.
To Borrowers’ knowledge, the Shares are not the subject of any present or threatened suit, action, arbitration, administrative
or other proceeding, and Borrower knows of no reasonable grounds for the institution of any such proceedings

 

5.18
Full Disclosure. At the time made to Bank, no representation, warranty or other written statement made by a Borrower in any
certificate or written statement furnished to Bank when taken as a whole contains any untrue statement of a material fact or omits
to state a material fact necessary in order to make the statements contained in such certificates or statements not misleading.

 

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6.
Affirmative Covenants.

 

Each
Borrower shall do all of the following:

 

6.1
Good Standing. Each Borrower shall maintain its and each of its Subsidiaries’ corporate existence and good standing
in its jurisdiction of incorporation and maintain qualification in each jurisdiction in which it is required under applicable
law. Borrower shall maintain, and shall cause each of its Subsidiaries to maintain, in force all licenses, approvals and agreements,
the loss of which could have a Material Adverse Effect.

 

6.2
Government Compliance. Each Borrower shall meet, and shall cause each Subsidiary to meet, the minimum funding requirements
of ERISA with respect to any employee benefit plans subject to ERISA. Each Borrower shall comply, and shall cause each Subsidiary
to comply, with all statutes, laws, ordinances and government rules and regulations to which it is subject, noncompliance with
which could have a Material Adverse Effect.

 

6.3
Financial Statements, Reports, Certificates. Borrowers shall deliver the following to Bank: (a) as soon as available, but
in any event within thirty (30) days after the last day of each month, (i) a Borrowing Base Certificate signed by a Responsible
Officer in substantially the form of Exhibit C hereto, (ii) aged listings of accounts receivable and accounts payable by invoice
date, and (iii) a Monthly Recurring Revenue report for the trailing 12 months; (b) as soon as available, but in any event within
thirty (30) days after the end of each calendar month, a company prepared consolidated and consolidating balance sheet, income
statement, and cash flow statement covering Parent’s and its Subsidiaries’ consolidated and consolidating operations
during such period, prepared in accordance with GAAP, consistently applied, in a form acceptable to Bank and certified by a Responsible
Officer, together with a Compliance Certificate signed by a Responsible Officer in substantially the form of Exhibit D hereto;
(c) as soon as available, but in any event within one hundred eighty (180) days after the end of Parent’s fiscal year, audited
consolidated and consolidating financial statements of Parent prepared in accordance with GAAP, consistently applied, together
with an unqualified opinion on such financial statements of an independent certified public accounting firm reasonably acceptable
to Bank (it being acknowledged that McConnell & Jones LLP is acceptable to Bank); (d) as soon as available, but in any event
no later than the earlier to occur of sixty (60) days following the beginning of each fiscal year or the date of approval by Parent’s
board of directors, an annual operating budget and financial projections (including income statements, balance sheets and cash
flow statements) for such fiscal year, presented in a quarterly format, approved by Parent’s board of directors, and in
a form and substance acceptable to Bank (each, a “Financial Plan”); (e) copies of all statements, reports and notices
sent or made available generally by a Borrower to its security holders or to any holders of Subordinated Debt and, if applicable,
all reports on Forms 10-K and 10-Q filed with the Securities and Exchange Commission, with Borrower’s posting of materials
on the SEC’s EDGAR database satisfying such reporting obligation; (f) promptly upon receipt of notice thereof, a report
of any legal actions pending or threatened against a Borrower or any Subsidiary that could result in damages or costs to a Borrower
or any Subsidiary of Fifty Thousand Dollars ($50,000) or more; and (g) such budgets, sales projections, operating plans or other
financial information as Bank may reasonably request from time to time.

 

6.4
Audits. Bank shall have a right from time to time hereafter to audit a Borrower’s Accounts and appraise Collateral at
such Borrower’s expense, provided that such audits will be conducted no more often than once every twelve (12) months unless
an Event of Default has occurred and is continuing.

 

6.5
Inventory; Returns. Borrowers shall keep all Inventory in good and marketable condition and free from all material defects,
except for Inventory for which adequate reserves have been made. Returns and allowances, if any, as between Borrowers and its
account debtors shall be on the same basis and in accordance with the usual customary practices of Borrowers, as they exist at
the time of the execution and delivery of this Agreement. Borrowers shall promptly notify Bank of all returns and recoveries and
of all disputes and claims, where the return, recovery, dispute or claim involves more than Fifty Thousand Dollars ($50,000).

 

6.6
Taxes. Borrowers shall make, and shall cause each Subsidiary to make, due and timely payment or deposit of all federal, state,
and local taxes, assessments, or contributions required of it by law, and will execute and deliver to Bank, on demand, appropriate
certificates attesting to the payment or deposit thereof; and Borrowers will make, and will cause each Subsidiary to make, timely
payment or deposit of all tax payments and withholding taxes required of it by applicable laws, including, but not limited to,
those laws concerning F.I.C.A., F.U.T.A., state disability, and local, state, and federal income taxes, and will, upon request,
furnish Bank with proof satisfactory to Bank indicating that Borrower or a Subsidiary has made such payments or deposits; provided
that Borrower or a Subsidiary need not make any payment if the amount or validity of such payment is contested in good faith by
appropriate proceedings and is reserved against (to the extent required by GAAP) by Borrowers.

 

    	 	13	 

    	 

    

 

6.7
Insurance.

 

(a)
Borrowers, at their expense, shall keep the Collateral insured against loss or damage by fire, theft, explosion, sprinklers,
and all other hazards and risks, and in such amounts, as ordinarily insured against by other owners in similar businesses conducted
in the locations where a Borrower’s business is conducted on the date hereof. Borrowers shall also maintain insurance relating
to Borrowers’ business, ownership and use of the Collateral in amounts and of a type that are customary to businesses similar
to Borrowers’.

 

(b)
All such policies of insurance shall be in such form, with such companies, and in such amounts as are reasonably satisfactory
to Bank. All such policies of property insurance shall contain a lender’s loss payable endorsement, in a form satisfactory
to Bank, showing Bank as an additional loss payee thereof, and all liability insurance policies shall show the Bank as an additional
insured and shall specify that the insurer must give at least twenty (20) days’ notice to Bank before canceling its policy
for any reason. Upon Bank’s request, Borrower shall deliver to Bank certified copies of such policies of insurance and evidence
of the payments of all premiums therefor. All proceeds payable under any such policy shall, at the option of Bank, be payable
to Bank to be applied on account of the Obligations.

 

6.8
Accounts. Borrowers shall (i) maintain and shall cause each of their domestic Subsidiaries to maintain its primary depository,
operating, and investment accounts with Bank and (ii) endeavor to utilize and shall cause each of their Subsidiaries to endeavor
to utilize Bank’s International Banking Division for any international banking services required by Borrowers, including,
but not limited to, foreign currency wires, hedges, swaps, foreign exchange contracts, and letters of credit. For each deposit,
operating, or investment account that a Borrower maintains outside of Bank, such Borrower shall cause the applicable bank or financial
institution at or with which any such account is maintained to execute and deliver an account control agreement or other appropriate
instrument in form and substance satisfactory to Bank. The aggregate amount of cash and cash equivalents maintained in accounts
outside of Bank that are not subject to a control agreement (including any accounts maintained by a foreign Subsidiary) shall
not exceed $450,000 in the aggregate at any time.

 

6.9
Financial Covenants. 

 

(a)
Minimum Cash and Availability. The sum of (i) Borrowers’ unrestricted cash maintained at Bank plus (ii) the amount available
for borrowing under the Revolving Facility shall be at least $1,500,000 at all times and measured monthly.

 

(b)
Minimum MRR Retention Rate. Borrowers shall maintain a minimum MRR Retention Rate of at least ninety percent (90%), measured
on a monthly basis.

 

(c)
Minimum Adjusted EBITDA. Parent’s and its Subsidiaries’ quarterly Adjusted EBITDA shall be at least the projected
Adjusted EBITDA for such period minus $100,000 or 75% of its projected Adjusted EBITDA for such period as set forth in Borrower’s
Financial Plan if Borrower’s projected Adjusted EBITDA is above zero for such period, or at least 125% of its projected
Adjusted EBITDA for such period as set forth in Borrower’s Financial Plan if Borrower’s projected Adjusted EBITDA
is below zero for such period.

 

6.10
Intellectual Property Rights.

 

(a)
Borrowers shall promptly give Bank written notice of any applications or registrations of intellectual property rights filed
with the United States Patent and Trademark Office, including the date of such filing and the registration or application numbers,
if any. Borrowers shall (i) give Bank not less than 30 days prior written notice of the filing of any applications or registrations
with the United States Copyright Office, including the title of such intellectual property rights to be registered, as such title
will appear on such applications or registrations, and the date such applications or registrations will be filed, and (ii) prior
to the filing of any such applications or registrations, shall execute such documents as Bank may reasonably request for Bank
to maintain its perfection in such intellectual property rights to be registered by Borrowers, and upon the request of Bank, shall
file such documents simultaneously with the filing of any such applications or registrations. Upon filing any such applications
or registrations with the United States Copyright Office, Borrowers shall promptly provide Bank with (i) a copy of such applications
or registrations, without the exhibits, if any, thereto, (ii) evidence of the filing of any documents requested by Bank to be
filed for Bank to maintain the perfection and priority of its security interest in such intellectual property rights, and (iii)
the date of such filing.

 

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(b)
Bank may audit Borrowers’ Intellectual Property Collateral to confirm compliance with this Section, provided such audit
may not occur more often than once per year, unless an Event of Default has occurred and is continuing. Bank shall have the right,
but not the obligation, to take, at Borrowers’ sole expense, any actions that Borrowers are required under this Section
to take but which Borrowers fail to take, after 15 days’ notice to Borrowers. Borrowers shall reimburse and indemnify Bank
for all costs and expenses incurred in the exercise of its rights under this Section.

 

6.11
Formation or Acquisition of Subsidiaries. Notwithstanding and without limiting the negative covenants contained in Sections
7.3 and 7.7 hereof, at the time that a Borrower forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary,
such Borrower shall (a) cause such new Subsidiary to provide to Bank a joinder to this Agreement to cause such Subsidiary to become
a co-borrower hereunder, together with such appropriate financing statements and/or control agreements, all in form and substance
satisfactory to Bank (including being sufficient to grant Bank a first priority Lien (subject to Permitted Liens) in and to the
assets of such newly formed or acquired Subsidiary), (b) provide to Bank appropriate certificates and powers and financing statements,
pledging all of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Bank,
and (c) provide to Bank all other documentation in form and substance satisfactory to Bank that in its opinion is appropriate
with respect to the execution and delivery of the applicable documentation referred to above.

 

6.12
Notices of Commercial Tort Claims; Event of Default. Without limiting or contradicting any other more specific provision of
this Agreement, promptly (and in any event within five (5) Business Days) upon a Borrower becoming aware of the existence of any
Event of Default or event described in Section 8 which, with the giving of notice or passage of time, or both, would constitute
an Event of Default, such Borrower shall give written notice to Bank of such occurrence, which such notice shall include a reasonably
detailed description of such Event of Default or event which, with the giving of notice or passage of time, or both, would constitute
an Event of Default. If a Borrower shall acquire a commercial tort claim (as defined in the Code), such Borrower shall promptly
notify Bank in writing of the general details thereof and grant to the Bank in such writing a security interest therein and in
the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance reasonably satisfactory
to the Bank.

 

6.13
Collections Account. On and after the 60th day following the Closing Date, all proceeds of Accounts shall be deposited
into a restricted account maintained with Bank (the “Collections Account”). Borrowers shall cause all account debtors
to make payments (including via wire transfer, ACH or EFT) to the Collections Accounts. If a Borrower receives any amount despite
such instructions, Borrowers shall immediately deliver such payment to Bank in the form received, except for an endorsement to
the order of Bank and, pending such delivery, shall hold such payment in trust for Bank. Bank shall credit all amounts paid into
the Collections Account within two Business Days after clearance of any such deposits, to a Borrower’s operating account
maintained at Bank; provided however that upon an Event of Default that is continuing, Bank may, at its option credit any and
all amounts paid into the Collections Account first against any amounts outstanding pertaining to any Advances, and then any remaining
balance of such amount shall be credited to a Borrower’s operating account maintained at Bank.

 

6.14
Further Assurances. At any time and from time to time Borrowers shall execute and deliver such further instruments and take
such further action as may reasonably be requested by Bank to effect the purposes of this Agreement.

 

6.15
Post-Closing Covenant. Within sixty (60) days following the Closing Date, Borrowers shall deliver to Bank, in form
and substance satisfactory to Bank, landlord waiver(s) with respect to all of Borrowers’ leased locations in Florida.

 

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7.
Negative Covenants.

 

Borrowers
will not do any of the following:

 

7.1
Dispositions. Convey, sell, lease, transfer or otherwise dispose of (collectively, a “Transfer”), or permit any
of its Subsidiaries to Transfer, all or any part of its business or property, other than: (i) Transfers of Inventory in the ordinary
course of business; (ii) Transfers of non-exclusive licenses and similar arrangements for the use of the property of a Borrower
or its Subsidiaries in the ordinary course of business; (iii) Transfers of worn-out or obsolete Equipment which was not financed
by Bank; or (iv) Transfers of any cash or any other property to its Subsidiaries that are not coborrowers hereunder (inclusive
of all Permitted Investments under clause (c) of such defined term) not to exceed $600,000 per calendar year.

 

7.2
Change in Business or Executive Office. Engage in any business, or permit any of its Subsidiaries to engage in any business,
other than the businesses currently engaged in by Borrower and any business substantially similar or related thereto (or incidental
thereto); or cease to conduct business in the manner conducted by Borrowers as of the Closing Date; or without thirty (30) days
prior written notification to Bank, relocate its chief executive office or state of incorporation or change its legal name; or
without Bank’s prior written consent, change the date on which its fiscal year ends.

 

7.3
Change in Control/Mergers or Acquisitions. (i) Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate,
with or into any other business organization, or acquire, or permit any of its Subsidiaries to acquire, all or substantially all
of the capital stock or any material portion of property of another Person; or (ii) suffer or permit a Change in Control; provided
however, (x) only advance written notice to the Bank will be required for any action restricted by this Section 7.3 if all Obligations
are paid in full in cash out of the proceeds of the initial closing of such action and such payment is listed as a condition to
the consummation of such action, (y) any Subsidiary that is not a borrower hereunder may merge or consolidate into any other Subsidiary
that is not a borrower hereunder, and (z) a Borrower may merge or consolidate into another Borrower as long as Parent remains
the surviving entity following such merger or consolidation.

 

7.4
Indebtedness. Create, incur, assume or be or remain liable with respect to any Indebtedness, or permit any Subsidiary so to
do, other than Permitted Indebtedness.

 

7.5
Encumbrances. Create, incur, assume or suffer to exist any Lien with respect to any of its property (including without limitation,
its Intellectual Property Collateral), or assign or otherwise convey any right to receive income, including the sale of any Accounts,
or permit any of its Subsidiaries to do so, except for Permitted Liens, or agree with any Person other than Bank not to grant
a security interest in, or otherwise encumber, any of its property (including without limitation, its Intellectual Property Collateral),
or permit any Subsidiary to do so.

 

7.6
Distributions. Pay any dividends or make any other distribution or payment on account of or in redemption, retirement or purchase
of any capital stock, or permit any of its Subsidiaries to do so, except (i) that Parent may repurchase the stock of former employees
pursuant to stock repurchase agreements as long as an Event of Default does not exist prior to such repurchase or would not exist
after giving effect to such repurchase and the aggregate amount of such repurchases does not exceed $100,000 in any fiscal year
and (ii) any Subsidiary of Parent may pay dividends or make distributions on account of any capital stock without restriction.

 

7.7
Investments. Directly or indirectly acquire or own, or make any Investment in or to any Person, or permit any of its Subsidiaries
so to do, other than Permitted Investments; or maintain or invest any of its property with a Person other than Bank or permit
any of its Subsidiaries to do so unless such Person has entered into an account control agreement with Bank in form and substance
satisfactory to Bank; or suffer or permit any Subsidiary to be a party to, or be bound by, an agreement that restricts such Subsidiary
from paying dividends or otherwise distributing property to Borrowers.

 

7.8
Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate
of Borrowers except for transactions that are in the ordinary course of Borrowers’ business, upon fair and reasonable terms
that are no less favorable to Borrowers than would be obtained in an arm’s length transaction with a non-affiliated Person.

 

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7.9
Subordinated Debt. Make any payment in respect of any Subordinated Debt, or permit any of its Subsidiaries to make any such
payment, except in compliance with the terms of such Subordinated Debt, or amend any provision contained in any documentation
relating to the Subordinated Debt without Bank’s prior written consent.

 

7.10
Inventory and Equipment. Store the Inventory or the Equipment with a bailee, warehouseman, or other third party unless the
third party has been notified of Bank’s security interest and Bank (a) has received an acknowledgment from the third party
that it is holding or will hold the Inventory or Equipment for Bank’s benefit or (b) is in pledge possession of the warehouse
receipt, where negotiable, covering such Inventory or Equipment. Store or maintain any Equipment or Inventory at a location other
than the location set forth in Section 10 of this Agreement.

 

7.11
Compliance. Become an “investment company” or be controlled by an “investment company,” within the
meaning of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of its important activities,
the business of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds of any Credit Extension
for such purpose. Fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction,
as defined in ERISA, to occur, fail to comply with the Federal Fair Labor Standards Act or violate any law or regulation, which
violation could have a Material Adverse Effect, or a material adverse effect on the Collateral or the priority of Bank’s
Lien on the Collateral, or permit any of its Subsidiaries to do any of the foregoing.

 

7.12
Capital Expenditures. Make or contract to make, without Bank’s prior written consent, capital expenditures, including
leasehold improvements, in any fiscal year in excess of $800,000 or incur liability for rentals of property (including both real
and personal property) in an amount which, together with capital expenditures, shall in any fiscal year exceed such sum.

 

8.
Events of Default.

 

Any
one or more of the following events shall constitute an Event of Default by Borrower under this Agreement:

 

8.1
Payment Default. If Borrowers fail to pay, when due, any of the Obligations.

 

8.2
Covenant Default.

 

(a)
If a Borrower fails to perform any obligation under Article 6 or violates any of the covenants contained in Article 7 of this
Agreement; or

 

(b)
If a Borrower fails or neglects to perform or observe any other material term, provision, condition, or covenant contained
in this Agreement, in any of the Loan Documents, or in any other present or future agreement between a Borrower and Bank and as
to any default under such other term, provision, condition or covenant that can be cured, has failed to cure such default within
ten days after a Borrower receives notice thereof or any officer of a Borrower becomes aware thereof; provided, however, that
if the default cannot by its nature be cured within the ten day period or cannot after diligent attempts by Borrowers be cured
within such ten day period, and such default is likely to be cured within a reasonable time, then Borrowers shall have an additional
reasonable period (which shall not in any case exceed 30 days) to attempt to cure such default, and within such reasonable time
period the failure to have cured such default shall not be deemed an Event of Default but no Credit Extensions will be made.

 

8.3
Material Adverse Effect. If there occurs any circumstance or circumstances that could have a Material Adverse Effect.

 

    	 	17	 

    	 

    

 

8.4
Attachment. If any portion of a Borrower’s assets is attached, seized, subjected to a writ or distress warrant, or is
levied upon, or comes into the possession of any trustee, receiver or person acting in a similar capacity and such attachment,
seizure, writ or distress warrant or levy has not been removed, discharged or rescinded within ten (10) days, or if a Borrower
is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any material part of its business
affairs, or if a judgment or other claim becomes a lien or encumbrance upon any portion of a Borrower’s assets, or if a
notice of lien, levy, or assessment is filed of record with respect to any of a Borrower’s assets by the United States Government,
or any department, agency, or instrumentality thereof, or by any state, county, municipal, or governmental agency, and the same
is not paid within ten (10) days after a Borrower receives notice thereof, provided that none of the foregoing shall constitute
an Event of Default where such action or event is stayed or an adequate bond has been posted pending a good faith contest by Borrowers
(provided that no Credit Extensions will be required to be made during such cure period).

 

8.5
Insolvency. If a Borrower becomes insolvent, or if an Insolvency Proceeding is commenced by a Borrower, or if an Insolvency
Proceeding is commenced against a Borrower and is not dismissed or stayed within thirty (30) days (provided that no Credit Extensions
will be made prior to the dismissal of such Insolvency Proceeding).

 

8.6
Other Agreements. If there is a default or other failure to perform in any agreement to which a Borrower is a party or by
which it is bound resulting in a right by a third party or parties, whether or not exercised, to accelerate the maturity of any
Indebtedness in an amount in excess of Fifty Thousand Dollars ($50,000) or which could have a Material Adverse Effect.

 

8.7
Judgments; Settlements; Fines; Penalties. If a judgment or judgments for the payment of money in an amount, individually or
in the aggregate, of at least Fifty Thousand Dollars ($50,000) shall be rendered against a Borrower, or if a Borrower enters into
any settlement agreement with respect to any litigation matters that results in payment obligations or liabilities incurred by
such Borrower in excess of Fifty Thousand Dollars ($50,000); or if one or more fines, penalties or orders or decrees for the payment
of money in excess of Fifty Thousand Dollars ($50,000) shall be rendered against a Borrower by any governmental authority; and
the foregoing shall remain unsatisfied and unstayed for a period of ten (10) days (provided that no Credit Extensions will be
made prior to the satisfaction or stay of such judgment, settlement, fine, penalty or orders or decree).

 

8.8
Misrepresentations. If any material misrepresentation or material misstatement exists now or hereafter in any warranty or
representation set forth herein or in any certificate delivered to Bank by any Responsible Officer pursuant to this Agreement
or to induce Bank to enter into this Agreement or any other Loan Document.

 

9.
Bank’s Rights and Remedies.

 

9.1
Rights and Remedies. Upon the occurrence and during the continuance of an Event of Default, Bank may, at its election, without
notice of its election and without demand, do any one or more of the following, all of which are authorized by Borrowers:

 

(a)
Declare all or any portion of Obligations, whether evidenced by this Agreement, by any of the other Loan Documents, or otherwise,
immediately due and payable (provided that upon the occurrence of an Event of Default described in Section 8.5, all Obligations
shall become immediately due and payable without any action by Bank);

 

(b)
Cease advancing money or extending credit to or for the benefit of Borrowers under this Agreement or under any other agreement
between Borrowers and Bank;

 

(c)
Settle or adjust disputes and claims directly with account debtors for amounts, upon terms and in whatever order that Bank
reasonably considers advisable;

 

    	 	18	 

    	 

    

 

(d)
Make such payments and do such acts as Bank considers necessary or reasonable to protect its security interest in the Collateral.
Borrowers agree to assemble the Collateral if Bank so requires, and to make the Collateral available to Bank as Bank may designate.
Each Borrower authorizes Bank to enter the premises where the Collateral is located, to take and maintain possession of the Collateral,
or any part of it, and to pay, purchase, contest, or compromise any encumbrance, charge, or lien which in Bank’s determination
appears to be prior or superior to its security interest and to pay all expenses incurred in connection therewith. With respect
to any of a Borrower’s owned premises, each Borrower hereby grants Bank a license to enter into possession of such premises
and to occupy the same, without charge, in order to exercise any of Bank’s rights or remedies provided herein, at law, in
equity, or otherwise;

 

(e)
Set off and apply to the Obligations any and all (i) balances and deposits of Borrowers held by Bank, or (ii) indebtedness
at any time owing to or for the credit or the account of Borrowers held by Bank;

 

(f)
Ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided
for herein) the Collateral. Bank is hereby granted a license or other right, solely pursuant to the provisions of this Section
9.1, to use, without charge, a Borrower’s labels, Patents, Copyrights, rights of use of any name, trade secrets, trade names,
Trademarks, service marks, and advertising matter, or any property of a similar nature, as it pertains to the Collateral, in completing
production of, advertising for sale, and selling any Collateral and, in connection with Bank’s exercise of its rights under
this Section 9.1, Borrowers’ rights under all licenses and all franchise agreements shall inure to Bank’s benefit;

 

(g)
Dispose of the Collateral by way of one or more contracts or transactions, for cash or on terms, in such manner and at such
places (including Borrowers’ premises) as Bank determines is commercially reasonable, and apply any proceeds to the Obligations
in whatever manner or order Bank deems appropriate;

 

(h)
Bank may credit bid and purchase at any public sale; and

 

(i)
Any deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrowers.

 

9.2
Power of Attorney. Effective only upon the occurrence and during the continuance of an Event of Default, each Borrower hereby
irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as such Borrower’s true and lawful
attorney to: (a) send requests for verification of Accounts or notify account debtors of Bank’s security interest in the
Accounts; (b) endorse such Borrower’s name on any checks or other forms of payment or security that may come into Bank’s
possession; (c) sign such Borrower’s name on any invoice or bill of lading relating to any Account, drafts against account
debtors, schedules and assignments of Accounts, verifications of Accounts, and notices to account debtors; (d) dispose of any
Collateral; (e) make, settle, and adjust all claims under and decisions with respect to such Borrower’s policies of insurance;
(f) settle and adjust disputes and claims respecting the accounts directly with account debtors, for amounts and upon terms which
Bank determines to be reasonable; and (g) whether or not an Event of Default has occurred that is continuing, file, in its sole
discretion, one or more financing or continuation statements and amendments thereto, relative to any of the Collateral. The appointment
of Bank as each Borrower’s attorney in fact, and each and every one of Bank’s rights and powers, being coupled with
an interest, is irrevocable until all of the Obligations have been fully repaid and performed and Bank’s obligation to provide
Credit Extensions hereunder is terminated.

 

9.3
Accounts Collection. At any time after the occurrence of an Event of Default, Bank may notify any Person owing funds to Borrowers
of Bank’s security interest in such funds and verify the amount of such Account. Borrowers shall collect for Bank all amounts
owing to Borrowers, receive in trust all such payments as Bank’s trustee, and immediately deliver such payments to Bank
in their original form as received from the account debtor, with proper endorsements for deposit.

 

9.4
Bank Expenses. If Borrowers fail to pay any amounts or furnish any required proof of payment due to third persons or entities,
as required under the terms of this Agreement, then Bank may do any or all of the following: (a) make payment of the same or any
part thereof; (b) set up such reserves under the loan facility in Section 2.1 as Bank deems necessary to protect Bank from the
exposure created by such failure; or (c) obtain and maintain insurance policies of the type discussed in Section 6.7 of this Agreement,
and take any action with respect to such policies as Bank deems prudent. Any amounts so paid or deposited by Bank shall constitute
Bank Expenses, shall be immediately due and payable, and shall bear interest at the then applicable rate hereinabove provided,
and shall be secured by the Collateral. Any payments made by Bank shall not constitute an agreement by Bank to make similar payments
in the future or a waiver by Bank of any Event of Default under this Agreement.

 

    	 	19	 

    	 

    

 

9.5
Bank’s Liability for Collateral. So long as Bank complies with reasonable banking practices, Bank shall not in any way
or manner be liable or responsible for: (a) the safekeeping of the Collateral; (b) any loss or damage thereto occurring or arising
in any manner or fashion from any cause; (c) any diminution in the value thereof; or (d) any act or default of any carrier, warehouseman,
bailee, forwarding agency, or other person whomsoever. All risk of loss, damage or destruction of the Collateral shall be borne
by Borrowers.

 

9.6
Shares. Borrowers recognize that Bank may be unable to effect a public sale of any or all the Shares, by reason of certain
prohibitions contained in federal securities laws and applicable state and provincial securities laws or otherwise, and may be
compelled to resort to one or more private sales thereof to a restricted group of purchasers which will be obliged to agree, among
other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale
thereof. Borrowers acknowledge and agree that any such private sale may result in prices and other terms less favorable than if
such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have
been made in a commercially reasonable manner. Bank shall be under no obligation to delay a sale of any of the Shares for the
period of time necessary to permit the issuer thereof to register such securities for public sale under federal securities laws
or under applicable state and provincial securities laws, even if such issuer would agree to do so. Upon the occurrence of an
Event of Default which continues, Bank shall have the right to exercise all such rights as a secured party under the Code as it,
in its sole judgment, shall deem necessary or appropriate, including without limitation the right to liquidate the Shares and
apply the proceeds thereof to reduce the Obligations. Effective only upon the occurrence and during the continuance of an Event
of Default, each Borrower hereby irrevocably appoints Bank (and any of Bank’s designated officers, or employees) as such
Borrower’s true and lawful attorney to enforce such Borrower’s rights against any Subsidiary, including the right
to compel any Subsidiary to make to the Bank or a Borrower any payments or distributions respecting the Shares which are owing
to such Borrower.

 

9.7
Remedies Cumulative. Bank’s rights and remedies under this Agreement, the Loan Documents, and all other agreements shall
be cumulative. Bank shall have all other rights and remedies not inconsistent herewith as provided under the Code, by law, or
in equity. No exercise by Bank of one right or remedy shall be deemed an election, and no waiver by Bank of any Event of Default
on a Borrower’s part shall be deemed a continuing waiver. No delay by Bank shall constitute a waiver, election, or acquiescence
by it. No waiver by Bank shall be effective unless made in a written document signed on behalf of Bank and then shall be effective
only in the specific instance and for the specific purpose for which it was given.

 

9.8
Demand; Protest. Each Borrower waives demand, protest, notice of protest, notice of default or dishonor, notice of payment
and nonpayment, notice of any default, nonpayment at maturity, release, compromise, settlement, extension, or renewal of accounts,
documents, instruments, chattel paper, and guarantees at any time held by Bank on which Borrowers may in any way be liable.

 

10.
Notices.

 

All
notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document
must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt
and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested,
with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business
Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger,
all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated
below. Bank or a Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written
notice thereof in accordance with the terms of this Section 10.

 

    	 	20	 

    	 

    

 

	 	If
    to Borrowers:	SharpSpring,
    Inc.
	 	 	304
    W. University Avenue
	 	 	Gainesville,
    FL 32601
	 	 	Attn:
    Edward Lawton – CFO
	 	 	EMAIL:
    edward.lawton@sharpspring.com
	 	 	 
	 	If
    to Bank:	Western
    Alliance Bank
	 	 	55
    Almaden Blvd.
	 	 	San
    Jose, CA 95113
	 	 	Attn:
    Note Department
	 	 	FAX:
    (408) 282-1681
	 	 	EMAIL:
    notedepartment@bridgebank.com
	 	 	 
	 	 	and
	 	 	 
	 	 	Bridge
    Bank, a division of Western Alliance Bank
	 	 	12011
    Sunset Hills Road, Suite 425
	 	 	Reston,
    VA 20190
	 	 	Attn:
    Katie Wolfe
	 	 	FAX:
    (703) 964-1620
	 	 	EMAIL:
    katie.wolfe@bridgebank.com

 

The
parties hereto may change the address at which they are to receive notices hereunder, by notice in writing in the foregoing manner
given to the other.

 

11.
CHOICE OF LAW AND VENUE; JURY TRIAL WAIVER.

 

This
Agreement and all other Loan Documents (except as otherwise expressly provided in any of the Loan Documents) shall be governed
by, and construed in accordance with, the internal laws of the State of California, without regard to principles of conflicts
of law. Borrowers and Bank each hereby submits to the exclusive jurisdiction of the state and Federal courts located in the County
of Santa Clara, State of California. BORROWERS AND BANK EACH HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING
CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. EACH PARTY RECOGNIZES AND AGREES
THAT THE FOREGOING WAIVER CONSTITUTES A MATERIAL INDUCEMENT FOR IT TO ENTER INTO THIS AGREEMENT. EACH PARTY REPRESENTS AND WARRANTS
THAT IT HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT IT KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL.

 

12.
JUDICIAL REFERENCE PROVISION.

 

12.1
In the event the jury trial waiver set forth above is not enforceable, the parties elect to proceed under this judicial reference
provision.

 

12.2
With the exception of the items specified in Section 12.3, below, any controversy, dispute or claim (each, a “Claim”)
between the parties arising out of or relating to this Agreement or any other Loan Document, will be resolved by a reference proceeding
in California in accordance with the provisions of Sections 638 et seq. of the California Code of Civil Procedure (“CCP”),
or their successor sections, which shall constitute the exclusive remedy for the resolution of any Claim, including whether the
Claim is subject to the reference proceeding. Except as otherwise provided in the Loan Documents, venue for the reference proceeding
will be in the state or federal court in the county or district where the real property involved in the action, if any, is located
or in the state or federal court in the county or district where venue is otherwise appropriate under applicable law (the “Court”).

 

    	 	21	 

    	 

    

 

12.3
The matters that shall not be subject to a reference are the following: (i) nonjudicial foreclosure of any security interests
in real or personal property, (ii) exercise of self-help remedies (including, without limitation, set-off), (iii) appointment
of a receiver and (iv) temporary, provisional or ancillary remedies (including, without limitation, writs of attachment, writs
of possession, temporary restraining orders or preliminary injunctions). This reference provision does not limit the right of
any party to exercise or oppose any of the rights and remedies described in clauses (i) and (ii) or to seek or oppose from a court
of competent jurisdiction any of the items described in clauses (iii) and (iv). The exercise of, or opposition to, any of those
items does not waive the right of any party to a reference pursuant to this reference provision as provided herein.

 

12.4
The referee shall be a retired judge or justice selected by mutual written agreement of the parties. If the parties do not
agree within ten (10) days of a written request to do so by any party, then, upon request of any party, the referee shall be selected
by the Presiding Judge of the Court (or his or her representative). A request for appointment of a referee may be heard on an
ex parte or expedited basis, and the parties agree that irreparable harm would result if ex parte relief is not granted. Pursuant
to CCP § 170.6, each party shall have one peremptory challenge to the referee selected by the Presiding Judge of the Court
(or his or her representative).

 

12.5
The parties agree that time is of the essence in conducting the reference proceedings. Accordingly, the referee shall be requested,
subject to change in the time periods specified herein for good cause shown, to (i) set the matter for a status and trial-setting
conference within fifteen (15) days after the date of selection of the referee, (ii) if practicable, try all issues of law or
fact within one hundred twenty (120) days after the date of the conference and (iii) report a statement of decision within twenty
(20) days after the matter has been submitted for decision.

 

12.6
The referee will have power to expand or limit the amount and duration of discovery. The referee may set or extend discovery
deadlines or cutoffs for good cause, including a party’s failure to provide requested discovery for any reason whatsoever.
Unless otherwise ordered based upon good cause shown, no party shall be entitled to “priority” in conducting discovery,
depositions may be taken by either party upon seven (7) days written notice, and all other discovery shall be responded to within
fifteen (15) days after service. All disputes relating to discovery which cannot be resolved by the parties shall be submitted
to the referee whose decision shall be final and binding.

 

12.7
Except as expressly set forth herein, the referee shall determine the manner in which the reference proceeding is conducted
including the time and place of hearings, the order of presentation of evidence, and all other questions that arise with respect
to the course of the reference proceeding. All proceedings and hearings conducted before the referee, except for trial, shall
be conducted without a court reporter, except that when any party so requests, a court reporter will be used at any hearing conducted
before the referee, and the referee will be provided a courtesy copy of the transcript. The party making such a request shall
have the obligation to arrange for and pay the court reporter. Subject to the referee’s power to award costs to the prevailing
party, the parties will equally share the cost of the referee and the court reporter at trial.

 

12.8
The referee shall be required to determine all issues in accordance with existing case law and the statutory laws of the State
of California. The rules of evidence applicable to proceedings at law in the State of California will be applicable to the reference
proceeding. The referee shall be empowered to enter equitable as well as legal relief, enter equitable orders that will be binding
on the parties and rule on any motion which would be authorized in a court proceeding, including without limitation motions for
summary judgment or summary adjudication. The referee shall issue a decision at the close of the reference proceeding which disposes
of all claims of the parties that are the subject of the reference. Pursuant to CCP § 644, such decision shall be entered
by the Court as a judgment or an order in the same manner as if the action had been tried by the Court and any such decision will
be final, binding and conclusive. The parties reserve the right to appeal from the final judgment or order or from any appealable
decision or order entered by the referee. The parties reserve the right to findings of fact, conclusions of laws, a written statement
of decision, and the right to move for a new trial or a different judgment, which new trial, if granted, is also to be a reference
proceeding under this provision.

 

12.9
If the enabling legislation which provides for appointment of a referee is repealed (and no successor statute is enacted),
any dispute between the parties that would otherwise be determined by reference procedure will be resolved and determined by arbitration.
The arbitration will be conducted by a retired judge or justice, in accordance with the California Arbitration Act §1280
through §1294.2 of the CCP as amended from time to time. The limitations with respect to discovery set forth above shall
apply to any such arbitration proceeding.

 

    	 	22	 

    	 

    

 

12.10
THE PARTIES RECOGNIZE AND AGREE THAT ALL CONTROVERSIES, DISPUTES AND CLAIMS RESOLVED UNDER THIS REFERENCE PROVISION WILL BE
DECIDED BY A REFEREE AND NOT BY A JURY. AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT) WITH COUNSEL OF ITS, HIS OR
HER OWN CHOICE, EACH PARTY KNOWINGLY AND VOLUNTARILY, AND FOR THE MUTUAL BENEFIT OF ALL PARTIES, AGREES THAT THIS REFERENCE PROVISION
WILL APPLY TO ANY CONTROVERSY, DISPUTE OR CLAIM BETWEEN OR AMONG THEM ARISING OUT OF OR IN ANY WAY RELATED TO, THIS AGREEMENT
OR THE OTHER LOAN DOCUMENTS.

 

13.
General Provisions.

 

13.1
Successors and Assigns. This Agreement shall bind and inure to the benefit of the respective successors and permitted assigns
of each of the parties; provided, however, that neither this Agreement nor any rights hereunder may be assigned by a Borrower
without Bank’s prior written consent, which consent may be granted or withheld in Bank’s sole discretion. Bank shall
have the right without the consent of or notice to Borrowers to sell, transfer, negotiate, or grant participation in all or any
part of, or any interest in, Bank’s obligations, rights and benefits hereunder.

 

13.2
Indemnification. Each Borrower shall defend, indemnify and hold harmless Bank and its officers, employees, and agents against:
(a) all obligations, demands, claims, and liabilities claimed or asserted by any other party in connection with the transactions
contemplated by this Agreement; and (b) all losses or Bank Expenses in any way suffered, incurred, or paid by Bank as a result
of or in any way arising out of, following, or consequential to the transactions between Bank and a Borrower whether under this
Agreement, or otherwise (including without limitation attorneys’ fees and expenses), except for losses caused by Bank’s
gross negligence or willful misconduct.

 

13.3
Time of Essence. Time is of the essence for the performance of all obligations set forth in this Agreement.

 

13.4
Severability of Provisions. Each provision of this Agreement shall be severable from every other provision of this Agreement
for the purpose of determining the legal enforceability of any specific provision.

 

13.5
Amendments in Writing, Integration. Neither this Agreement nor the Loan Documents can be amended or terminated orally. All
prior agreements, understandings, representations, warranties, and negotiations between the parties hereto with respect to the
subject matter of this Agreement and the Loan Documents, if any, are merged into this Agreement and the Loan Documents.

 

13.6
Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts,
each of which, when executed and delivered, shall be deemed to be an original, and all of which, when taken together, shall constitute
but one and the same Agreement.

 

13.7
Survival. All covenants, representations and warranties made in this Agreement shall continue in full force and effect so
long as any Obligations remain outstanding or Bank has any obligation to make Credit Extensions to Borrowers. The obligations
of each Borrower to indemnify Bank with respect to the expenses, damages, losses, costs and liabilities described in Section 13.2
shall survive until all applicable statute of limitations periods with respect to actions that may be brought against Bank have
run.

 

    	 	23	 

    	 

    

 

13.8
Confidentiality. In handling any confidential information Bank and all employees and agents of Bank, including but not limited
to accountants, shall exercise the same degree of care that it exercises with respect to its own proprietary information of the
same types to maintain the confidentiality of any non-public information thereby received or received pursuant to this Agreement
except that disclosure of such information may be made (i) to the subsidiaries or affiliates of Bank in connection with their
present or prospective business relations with each Borrower, (ii) to prospective transferees or purchasers of any interest in
the Credit Extensions, (iii) as required by law, regulations, rule or order, subpoena, judicial order or similar order, (iv) as
may be required in connection with the examination, audit or similar investigation of Bank and (v) as Bank may determine in connection
with the enforcement of any remedies hereunder. Confidential information hereunder shall not include information that either:
(a) is in the public domain or in the knowledge or possession of Bank when disclosed to Bank, or becomes part of the public domain
after disclosure to Bank through no fault of Bank; or (b) is disclosed to Bank by a third party, provided Bank does not have actual
knowledge that such third party is prohibited from disclosing such information.

 

13.9
Patriot Act Notice. Bank hereby notifies Borrowers that, pursuant to the requirements of the USA Patriot Act, Title
III of Pub. L. 107-56 (signed into law on October 26, 2001) (the “Patriot Act”), it is required to obtain, verify
and record information that identifies the Borrowers, which information includes names and addresses and other information that
will allow Bank, as applicable, to identify the Borrowers in accordance with the Patriot Act.

 

14.
Co-Borrowers.

 

14.1
Co-Borrowers. Borrowers are jointly and severally liable for the Obligations and Bank may proceed against one Borrower to
enforce the Obligations without waiving its right to proceed against any other Borrower. This Agreement and the Loan Documents
are a primary and original obligation of each Borrower and shall remain in effect notwithstanding future changes in conditions,
including any change of law or any invalidity or irregularity in the creation or acquisition of any Obligations or in the execution
or delivery of any agreement between Bank and any Borrower. Each Borrower shall be liable for existing and future Obligations
as fully as if all of the Credit Extensions were advanced to such Borrower. Bank may rely on any certificate or representation
made by any Borrower as made on behalf of, and binding on, all Borrowers, including without limitation advance request forms and
compliance certificates. Each Borrower appoints each other Borrower as its agent with all necessary power and authority to give
and receive notices, certificates or demands for and on behalf of all Borrowers, to act as disbursing agent for receipt of any
Credit Extensions on behalf of each Borrower and to apply to Bank on behalf of each Borrower for any Credit Extension, any waivers
and any consents. This authorization cannot be revoked, and Bank need not inquire as to one Borrower’s authority to act
for or on behalf of another Borrower.

 

14.2
Subrogation and Similar Rights. Notwithstanding any other provision of this Agreement or any other Loan Document, each Borrower
irrevocably waives, until all Obligations are paid in full and Bank has no further obligation to make Credit Extensions to Borrowers,
all rights that it may have at law or in equity (including, without limitation, any law subrogating a Borrower to the rights of
Bank under the Loan Documents) to seek contribution, indemnification, or any other form of reimbursement from any other Borrower,
or any other Person now or hereafter primarily or secondarily liable for any of the Obligations, for any payment made by a Borrower
with respect to the Obligations in connection with the Loan Documents or otherwise and all rights that it might have to benefit
from, or to participate in, any security for the Obligations as a result of any payment made by a Borrower with respect to the
Obligations in connection with the Loan Documents or otherwise. Any agreement providing for indemnification, reimbursement or
any other arrangement prohibited under this Section shall be null and void. If any payment is made to a Borrower in contravention
of this Section, such Borrower shall hold such payment in trust for Bank and such payment shall be promptly delivered to Bank
for application to the Obligations, whether matured or unmatured.

 

14.3
Waivers of Notice. Each Borrower waives, to the extent permitted by law, notice of acceptance hereof; notice of the existence,
creation or acquisition of any of the Obligations; notice of an Event of Default except as set forth herein; notice of the amount
of the Obligations outstanding at any time; notice of any adverse change in the financial condition of any other Borrower or of
any other fact that might increase a Borrower’s risk; presentment for payment; demand; protest and notice thereof as to
any instrument; and all other notices and demands to which a Borrower would otherwise be entitled by virtue of being a co-borrower
or a surety. Each Borrower waives any defense arising from any defense of any other Borrower, or by reason of the cessation from
any cause whatsoever of the liability of any other Borrower. Bank’s failure at any time to require strict performance by
any Borrower of any provision of the Loan Documents shall not waive, alter or diminish any right of Bank thereafter to demand
strict compliance and performance therewith. Each Borrower also waives any defense arising from any act or omission of Bank that
changes the scope of a Borrower’s risks hereunder. Each Borrower hereby waives any right to assert against Bank any defense
(legal or equitable), setoff, counterclaim, or claims that such Borrower individually may now or hereafter have against another
Borrower or any other Person liable to Bank with respect to the Obligations in any manner or whatsoever.

 

    	 	24	 

    	 

    

 

14.4
Subrogation Defenses. Until all Obligations are paid in full and Bank has no further obligation to make Credit Extensions
to Borrowers, each Borrower hereby waives any defense based on impairment or destruction of its subrogation or other rights against
any other Borrower and waives all benefits which might otherwise be available to it under California Civil Code Sections 2809,
2810, 2819, 2839, 2845, 2848, 2849, 2850, 2899, and 3433 and California Code of Civil Procedure Sections 580a, 580b, 580d and
726, as those statutory provisions are now in effect and hereafter amended, and under any other similar statutes now and hereafter
in effect.

 

14.5
Right to Settle, Release.

 

(a)
The liability of Borrowers hereunder shall not be diminished by (i) any agreement, understanding or representation that any
of the Obligations is or was to be guaranteed by another Person or secured by other property, or (ii) any release or unenforceability,
whether partial or total, of rights, if any, which Bank may now or hereafter have against any other Person, including another
Borrower, or property with respect to any of the Obligations.

 

(b)
Without notice to any given Borrowers and without affecting the liability of any given Borrowers hereunder, Bank may (i) compromise,
settle, renew, extend the time for payment, change the manner or terms of payment, discharge the performance of, decline to enforce,
or release all or any of the Obligations with respect to any other Borrower by written agreement with such other Borrower, (ii)
grant other indulgences to another Borrower in respect of the Obligations, (iii) modify in any manner any documents relating to
the Obligations with respect to any other Borrower by written agreement with such other Borrower, (iv) release, surrender or exchange
any deposits or other property securing the Obligations, whether pledged by a Borrower or any other Person, or (v) compromise,
settle, renew, or extend the time for payment, discharge the performance of, decline to enforce, or release all or any obligations
of any guarantor, endorser or other Person who is now or may hereafter be liable with respect to any of the Obligations.

 

14.6
Subordination. All indebtedness of a Borrower now or hereafter arising held by another Borrower is subordinated to the Obligations
and a Borrower holding the indebtedness shall take all actions reasonably requested by Bank to effect, to enforce and to give
notice of such subordination.

 

15.
Notice of Final Agreement. NOTICE OF FINAL AGREEMENT.
BY SIGNING THIS AGREEMENT EACH PARTY REPRESENTS AND AGREES THAT: (A) THIS WRITTEN AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN
THE PARTIES, (B) THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN THE PARTIES, AND (C) THIS WRITTEN AGREEMENT MAY NOT BE CONTRADICTED
BY EVIDENCE OF ANY PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OR UNDERSTANDINGS OF THE PARTIES.

 

[signature
page follows]

 

    	 	25	 

    	 

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

	 	BORROWERS:
	 	 
	 	SHARPSPRING,
    INC.
	 	 
	 	By:	/s/
    Edward Lawton
	 	Name:	Edward
    Lawton
	 	Title:	CFO
	 	 	 
	 	quattro
    hosting llc
	 	 
	 	By:	/s/
    Edward Lawton
	 	Name:	Edward
    Lawton
	 	Title:	CFO
	 	 	 
	 	SHARPSPRING
    TECHNOLOGIES, INC.
	 	 
	 	By:	/s/
    Edward Lawton
	 	Name:	Edward
    Lawton
	 	Title:	CFO
	 	 	 
	 	BANK:
	 	 
	 	WESTERN
    ALLIANCE BANK
	 	 
	 	By:	/s/
    Katherine Wolfe
	 	Name:	Katherine
    Wolfe
	 	Title:	AVP

 

    	 	26	 

    	 

    

 

EXHIBIT
A

 

	DEBTOR:	SHARPSPRING,
    INC., QUATTRO HOSTING LLC, and 
	 	SHARPSPRING
    TECHNOLOGIES, INC. 
	 	 
	SECURED
    PARTY:	WESTERN
    ALLIANCE BANK

 

COLLATERAL
DESCRIPTION ATTACHMENT

TO
LOAN AND SECURITY AGREEMENT

 

All
personal property of each Borrower (herein referred to as “Borrower” or “Debtor”) whether presently existing
or hereafter created or acquired, and wherever located, including, but not limited to:

 

(a)
all accounts (including health-care-insurance receivables), chattel paper (including tangible and electronic chattel paper), commercial
tort claims, deposit accounts, documents (including negotiable documents), equipment (including all accessions and additions thereto),
general intangibles (including payment intangibles and software), goods (including fixtures), instruments (including promissory
notes), inventory (including all goods held for sale or lease or to be furnished under a contract of service, and including returns
and repossessions), investment property (including securities and securities entitlements), letter of credit rights, money, and
all of Debtor’s books and records with respect to any of the foregoing, and the computers and equipment containing said
books and records; and

 

(b)
any and all cash proceeds and/or noncash proceeds of any of the foregoing, including, without limitation, insurance proceeds,
and all supporting obligations and the security therefor or for any right to payment. All terms above have the meanings given
to them in the California Uniform Commercial Code, as amended or supplemented from time to time.

 

Notwithstanding
the foregoing, the Collateral shall not include the Pledged Shares, provided however that upon the satisfaction of the obligations
secured by the Pledged Shares, the Collateral shall automatically include the Pledged Shares.

 

    	 	27	 

    	 

    

 

Exhibit
B

 

ADVANCE
REQUEST FORM

 

(To
be submitted no later than 3:00 PM to be considered for same day processing)

 

	To:	Western
    Alliance Bank	 
	 	 	 
	Fax:	(408)
    282-1681	 
	 	 	 
	Date:	 	 
	 	 	 
	From:	SharpSpring,
    Inc.,	 
	 	on
    behalf of all Borrowers	 
	 	Borrower’s
    Name	 
	 	 	 
	 	 	 
	 	Authorized
    Signature	 
	 	 	 
	 	 	 
	 	Authorized
    Signer’s Name (please print)	 
	 	 	 
	 	 	 
	 	Phone
    Number	 

 

	To
    Account #	 	 

 

Borrowers
hereby request funding of an Advance in the amount of $ _______ in accordance with the Revolving Facility as defined in the Loan
and Security Agreement dated March 21, 2016.

 

Borrowers
hereby authorize Lender to rely on facsimile stamp signatures and treat them as authorized by Borrowers for the purpose of requesting
the above advance.

 

All
representations and warranties of Borrowers stated in the Loan and Security Agreement are true, correct and complete in all material
respects as of the date of this Advance Request; provided that those representations and warranties expressly referring
to another date shall be true, correct and complete in all material respects as of such date.

 

Capitalized
terms used herein and not otherwise defined have the meanings set forth in the Loan and Security Agreement.

 

    	 	28	 

    	 

    

 

Exhibit
C

BORROWING
BASE CERTIFICATE

WESTERN
ALLIANCE BANK

55
Almaden Boulevard, San Jose, CA 95113

 

Company:
SHARPSPRING, INC., on Behalf of Itself and All Borrowers

 

	Monthly Recurring Revenue Borrowing Base Calculation	 	 	As Of Date:             	 
	1.	 	GAAP Revenue recognized during the prior 3 months from Contracts	 	$	 	 	 	 	 	 
	2.	 	Less: GAAP Revenue from Contracts that are not Eligible Recurring Revenue Contracts (i.e. customer (i) has elected to cancel or not renew its license or maintenance contract, or (ii) ceases conducting business, goes out of business or is insolvent, (iii) has failed to pay in full within ninety (90) days of invoice date or (iv) with foreign customers billed or collected outside of the US) for such 3 month measurement period	 	$	 	 	 	 	 	 
	3.	 	Eligible Monthly Recurring Revenue for 3 months (#1 minus #2)	 	$	 	 	 	 	 	 
	4.	 	GAAP Revenue recognized during the prior 12 months from Contracts	 	$	 	 	 	 	 	 
	5.	 	Less: GAAP Revenue from Contracts that are not Eligible Recurring Revenue Contracts (i.e. customer (i) has elected to cancel or not renew its license or maintenance contract, or (ii) ceases conducting business, goes out of business or is insolvent, (iii) has failed to pay in full within ninety (90) days of invoice date or (iv) with foreign customers billed or collected outside of the US) for such 12 month measurement period	 	$	 	 	 	 	 	 
	6.	 	Eligible Monthly Recurring Revenue for the 12 month period ending on the measurement month (#4 minus #5)	 	 	 	 	 	$	 	 
	7.	 	MRR Retention Rate ((#3 divided by 3) divided by (#6 divided by 12))	 	 	 	 	 	 	%	 
	8.	 	Borrowing Base Amount (#3 x the lesser of #7 or 100%)	 	 	 	 	 	$	 	 
	9.	 	Maximum Loan Amount	 	 	 	 	 	$	2,500,000	 
	10.	 	Total Funds Available (Lesser of #8 or #9)	 	 	 	 	 	$	 	 
	11.	 	Less: Outstanding Advances	 	 	 	 	 	$	 	 
	12.	 	Less: Outstanding Cash Management Services	 	 	 	 	 	$	 	 
	13.	 	Available for Drawdown/Need to Pay	 	 	 	 	 	$	 	 

 

If
line #13 is a negative number, this amount must be remitted to the Bank immediately to bring loan balance into compliance. By
signing this form you authorize the bank to deduct any advance amounts directly from any Borrower’s account(s) at Western
Alliance Bank in the event there is an overadvance.

 

The
undersigned represents and warrants that the foregoing is true, complete and correct, and that the information reflected in this
Borrowing Base Certificate complies with the representations and warranties set forth in the Loan and Security Agreement between
the Borrowers and Western Alliance Bank.

 

	 	 	 	Date:	 	 
	 	Prepared
    By:	 	 	 	 
	 	 	 	 	 	 
	 	 	 	Date:	 	 
	 	Bank
    Reviewed:	 	 	 	 

 

    	 	29	 

    	 

    

 

Exhibit
D

 

Compliance
Certificate

 

	TO:	WESTERN
    ALLIANCE BANK
	 	 
	FROM:	SHARPSPRING,
    INC., QUATTRO HOSTING LLC, and SHARPSPRING TECHNOLOGIES, INC.

 

The
undersigned authorized officer of SHARPSPRING, INC., on behalf of itself and all
other Borrowers, hereby certifies that in accordance with the terms and conditions
of the Loan and Security Agreement between Borrowers and Bank (the “Agreement”), (i) each Borrower is in complete
compliance for the period ending _______________ with all required covenants except as noted below and (ii) all representations
and warranties of Borrowers stated in the Agreement are true and correct as of the date hereof. Attached herewith are the required
documents supporting the above certification. The Officer further certifies that these are prepared in accordance with Generally
Accepted Accounting Principles (GAAP) and are consistently applied from one period to the next except as explained in an accompanying
letter or footnotes.

 

Please
indicate compliance status by circling Yes/No under “Complies” column.

 

	Reporting
    Covenant	 	Required	 	Complies
	 	 	 	 	 	 
	A/R
    & A/P Agings	 	Monthly
    within 30 days	 	Yes	No
	Borrowing
    Base Certificate	 	Monthly
    within 30 days	 	Yes	No
	Monthly
    Recurring Revenue report for prior 12 months	 	Monthly
    within 30 days	 	Yes	No
	Monthly
    consolidated financial statements	 	Monthly
    within 30 days	 	Yes	No
	Monthly
    consolidating financial statements	 	Monthly
    within 30 days	 	Yes	No
	Compliance
    Certificate	 	Monthly
    within 30 days	 	Yes	No
	Annual
    audited financial statements	 	FYE
    within 180 days	 	Yes	No
	Annual
    operating budget, sales projections and operating plans approved by board of directors	 	Annually
    no later than 60 days following the beginning of each fiscal year or board approval	 	Yes	No
	 	 	 	 	 	 
	A/R
    and Collateral Audit	 	Initial
    and Annual	 	Yes	No
	 	 	 	 	 	 
	Deposit
    balances with Bank	 	$
    ___________________	 	 	 
	Deposit
    balance outside Bank	 	$
    ___________________	 	 	 

 

	Financial
    Covenant	 	Required	 	Actual	 	Complies
	 	 	 	 	 	 	 	 
	Minimum
    Cash at Bank + Availability on Revolving Facility	 	$1,500,000	 	$_________	 	Yes	No
	Minimum
    MRR Retention Rate (monthly)	 	At
    least 90%	 	________%	 	Yes	No
	Minimum
    Adjusted EBITDA (quarterly)	 	75%
    of Financial Plan	 	________%	 	Yes	No

 

	Comments
    Regarding Exceptions: See Attached.	 	BANK
    USE ONLY
	 	 	 
	 	 	Received
    by:	 
	Sincerely,	 	 	AUTHORIZED
    SIGNER
	 	 	 	 
	 	 	Date:	 
	 	 	 	 
	 	 	 	 
	 	 	Verified:	 
	SIGNATURE	 	 	AUTHORIZED
    SIGNER
	 	 	 	 
	 	 	Date:	 
	TITLE	 	 	 
	 	 	 	 	 

 

	 	 	Compliance
    Status	Yes	No
	 	 	 	 	 
	DATE	 	 	 	 

 

    	 	30	 

    	 

    

 

SCHEDULE
OF EXCEPTIONS

 

Permitted
Indebtedness (Section 1.1)

 

Permitted
Investments (Section 1.1)

 

Permitted
Liens (Section 1.1)

 

Inbound
Licenses (Section 5.6)

 

Prior
Names (Section 5.7)

 

SMTP.com,
Inc.

SMTP,
Inc.

 

Litigation
(Section 5.8)

 

Subsidiaries
(Section 5.14)

 

    	 	31INTELLECTUAL
PROPERTY SECURITY AGREEMENT

 

This
INTELLECTUAL PROPERTY SECURITY AGREEMENT, dated as of March 21, 2016 (the “Agreement”) is entered into by and between
SHARPSPRING, INC., a Delaware corporation (“Parent”), QUATTRO HOSTING LLC, a Delaware limited liability company (“Quattro”),
and SHARPSPRING TECHNOLOGIES, INC., a Delaware corporation (“SharpSpring Technologies”), and WESTERN ALLIANCE BANK,
an Arizona corporation (“Lender”). Parent, Quattro and SharpSpring Technologies are each also referred to herein as
a “Grantor”, and collectively, as the “Grantors”.

 

Reference
is made to the Loan and Security Agreement, dated as of March 21, 2016 (as amended from time to time, the “Loan Agreement’),
between Lender and Grantors. Terms used but not defined herein have the meaning given to them in the Loan Agreement. For good
and valuable consideration, receipt of which is hereby acknowledged, each Grantor hereby covenants and agrees as follows:

 

To
secure the Obligations under the Loan Agreement, each Grantor grants to Lender a security interest in all right, title, and interest
of such Grantor in any of the following, whether now existing or hereafter acquired or created in any and all of the following
property (collectively, the “Intellectual Property Collateral”):

 

(a)copyright
rights, copyright applications, copyright registrations and like protections in each work or authorship and derivative work thereof,
whether published or unpublished and whether or not the same also constitutes a trade secret, now or hereafter existing, created,
acquired or held (collectively, the “Copyrights”), including the Copyrights described in Exhibit A;

 

(b)trademark
and servicemark rights, whether registered or not, applications to register and registrations of the same and like protections,
and the entire goodwill of the business of Grantor connected with and symbolized by such trademarks (collectively, the “Trademarks”),
including the Trademarks described in Exhibit B;

 

(c)patents,
patent applications and like protections including without limitation improvements, divisions, continuations, renewals, reissues,
extensions and continuations-in-part of the same (collectively, the “Patents”), including the Patents described in
Exhibit C;

 

(d)mask
work or similar rights available for the protection of semiconductor chips or other products (collectively, the “Mask Works”);

 

(e)trade
secrets, and any and all intellectual property rights in computer software and computer software products;

 

(f)design
rights;

 

(g)claims
for damages by way of past, present and future infringement of any of the rights included above, with the right, but not the obligation,
to sue for and collect such damages for said use or infringement of the intellectual property rights identified above;

 

(h)licenses
or other rights to use any of the Copyrights, Patents, Trademarks, or Mask Works, and all license fees and royalties arising from
such use to the extent permitted by such license or rights;

 

(i)amendments,
renewals and extensions of any of the Copyrights, Trademarks, Patents, or Mask Works; and

 

(j)proceeds
and products of the foregoing, including without limitation all payments under insurance or any indemnity or warranty payable
in respect of any of the foregoing.

 

The
rights and remedies of Lender with respect to the security interests granted hereunder are in addition to those set forth in the
Loan Agreement, and those which are now or hereafter available to Lender as a matter of law or equity. Each right, power and remedy
of Lender provided for herein or in the Loan Agreement, or now or hereafter existing at law or in equity shall be cumulative and
concurrent and shall be in addition to every right, power or remedy provided for herein, and the exercise by Lender of any one
or more of such rights, powers or remedies does not preclude the simultaneous or later exercise by Lender of any other rights,
powers or remedies.

 

    	 	1	 

     

    

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

 

	GRANTORS:	 	LENDER:
	 	 	 
	SHARPSPRING,
    INC.	 	WESTERN
    ALLIANCE BANK 
	 	 	 
	By:	/s/
    Edward Lawton	 	By:	/s/
    Katherine Wolfe
	 	 	 	 	 
	Name:	Edward
    Lawton	 	Name:	Katherine
    Wolfe
	 	 	 	 	 
	Title:	CFO	 	Title:	AVP
	 	 	 	 	 
	 	 	 	 	 
	QUATTRO
    HOSTING LLC	 	Address for Notices: 
	 	 	 	Attn: Note Department
	By:	/s/
    Edward Lawton	 	55 Almaden Boulevard, Suite 100
	 	 	 	San Jose, California 95113
	Name:	Edward
    Lawton	 	Fax:(408) 282-1681
	 	 	 	 	 
	Title:	CFO	 	 	
	 	 	 	 	 
	SHARPSPRING
    TECHNOLOGIES, INC.	 	 	 
	 	 	 	 	 
	By:	/s/
    Edward Lawton	 	 	 
	 	 	 	 	 
	Name:	Edward
    Lawton	 	 	 
	 	 	 	 	 
	Title:	CFO	 	 	 

 

Address
for Notices for all Grantors:

304
W. University Avenue

Gainesville,
FL 32601

Attn:
Edward Lawton - CFO

 

    	 

     

    

 

EXHIBIT
A

Copyrights

 

Please
Check if No Copyrights Exist [X]

 

	Name of Owner	 	 	 	Type of Work:	 	 	 	Title: 
	 	 	Registration Number:	 	Filing Date:
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 

     

    

 

Exhibit
B

trademarks

 

Please
Check if No Trademarks Exist [X]

 

	Owner	 	 	 	Description:	 	 	 	U.S.
Serial Number: 
	 	 	 	Filing Date	 	 	 	U.S. Registration Number	 	 	 	Registration Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

 

    	 

     

    

 

Exhibit
C

patents

 

Please
Check if No Patents Exist [  ]

  

	Name of Owner	 	 	 	Title:	 	 	 	Patent
Number: 
	 	 	 	Application Number:	 	 	 	Issue / Publication Date: 	 
	SharpSpring, Inc.	 	 	 	Efficiency correlating inbound calls	 	 	 	 	 	 	 	PCT/IB2015/056467

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