Document:

Exhibit 10.1

 

FORBEARANCE AND FIFTH AMENDMENT AGREEMENT

 

This Forbearance and
Fifth Amendment Agreement (this “Amendment Agreement”), effective as of October 5, 2018, by and among uSell.com,
Inc., a Delaware corporation (“USELL”), BST Distribution, Inc., a New York corporation (“BST”),
We Sell Cellular LLC, a Delaware limited liability company (“WE SELL” together with uSell and BST, each a “Company”
and collectively the “Companies”), the Purchaser party hereto (the “Purchaser”) and ___________________,
a Delaware limited liability company, as agent for the Purchaser and the other Purchasers from time to time party to the Note Purchase
Agreement (as hereafter defined) (the “Agent” and together with such Purchasers, the “Creditor Parties”).

 

WHEREAS, the Companies
and Creditor Parties are parties to a Note Purchase Agreement dated as of January 13, 2017 (as amended from time to time, the “Purchase
Agreement”).

 

WHEREAS, an Event of
Default (as defined in the Note) occurred on April 1, 2018 and is now existing based on Companies’ failure to comply with
the “Operating Margin” covenant set forth in Section 8.23(a) of the Purchase Agreement for the fiscal quarter period
ending March 31, 2018 (the “Designated Default”).

 

WHEREAS, pursuant to
the terms of a Forbearance and Third Amendment Agreement dated as of May 4, 2018 by and among Company and Creditor Parties, Creditor
Parties agreed to forbear for a period of time from exercising rights and remedies based on the occurrence of the Designated Default
and amend certain provisions of the Purchase Agreement (the “May 4th Forbearance and Amendment Agreement”).

 

WHEREAS, pursuant to
the terms of a Forbearance and Fourth Amendment Agreement dated as of July 2, 2018 by and among Company and Creditor Parties, Creditor
Parties agreed to extend the Forbearance Period provided for and as defined in the May 4th Forbearance Agreement and further amend
certain provisions of the Purchase Agreement (the “July 2nd Forbearance and Amendment Agreement”).

 

WHEREAS, Companies
have requested that Creditor Parties (a) extend the Forbearance Period provided for and as defined in the July 2nd Forbearance
and Amendment Agreement and (b) further amend the Purchase Agreement and the Related Agreements on the terms and subject to the
conditions set forth herein, and Creditor Parties are prepared to extend such Forbearance Period and amend the Purchase Agreement,
in each case, on the terms and conditions set forth below.

 

NOW, THEREFORE, in
consideration of the foregoing, and of other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged,
the parties hereto agree as follows:

 

1.            Capitalized
Terms. Capitalized terms not otherwise defined in this Amendment Agreement shall have the meaning ascribed to them in the Purchase
Agreement.

 

     

     

    

 

2.            Acknowledgment
of Liabilities.

 

(a)          Each
Company hereby acknowledges that it is unconditionally liable to Creditor Parties under the Purchase Agreement and the Related
Agreements to which it is a party for the payment of all Liabilities, and no Company has any defenses, counterclaims, deductions,
credits, claims or rights of setoff or recoupment with respect to the Liabilities.

 

(b)          Each
Company hereby ratifies and confirms its obligations under the Purchase Agreement and the Related Agreements to which it is a party
and hereby acknowledges and agrees that the Purchase Agreement and the Related Agreements to which it is a party remain in full
force and effect.

 

3.            Forbearance.

 

(a)          Each
Company hereby acknowledges that (a) the Designated Default occurred on April 1, 2018 and is continuing and (b) the Forbearance
Period provided for and as defined in the July 2nd Forbearance and Amendment Agreement terminated on September 30, 2018, the occurrence
of which entitles the Creditor Parties to exercise their rights and remedies under the Purchase Agreement, the Related Agreements
and applicable law.

 

(b)          No
Creditor Party has waived, presently does not intend to waive and may never waive such Designated Default and nothing contained
herein or the transactions contemplated hereby shall be deemed to constitute in any manner whatsoever any such waiver. Each Company
hereby acknowledges that Creditor Parties have the presently exercisable right to declare the Liabilities to be immediately due
and payable under the terms of the Purchase Agreement and the Related Agreements.

 

(c)          Subject
to satisfaction of the conditions of effectiveness set forth in Section 9 of this Amendment Agreement, during the period (the “Forbearance
Period”) commencing on September 30, 2018 and ending on the earlier to occur of (a) December 3, 2018 and (b) the occurrence
of any Forbearance Default (as defined in Section 3(f) of this Amendment Agreement), Creditor Parties will forbear from exercising
their rights and remedies under the Purchase Agreement, the Related Agreements and applicable law solely in respect of the Designated
Default. Notwithstanding the foregoing, nothing contained herein shall impair in any manner whatsoever Creditor Parties’
rights to administer the credit facility and/or to collect, receive and/or apply proceeds of each Company’s accounts receivable
and/or any other collateral to the Liabilities, in each case, in accordance with the terms of the Purchase Agreement and the Related
Agreements. The Creditor Parties may consider extending the expiration date of the Forbearance Period, but any such extension will
be determined by the Creditor Parties in their sole and absolute discretion and, if provided at all, shall only be made on terms
and conditions satisfactory to the Creditor Parties in their sole and absolute discretion. No such extension, if provided at all,
shall be effective unless in a writing executed by the Creditor Parties and the Companies, and acknowledged and agreed to by the
Guarantors.

 

(d)          Upon
the termination of the Forbearance Period, the agreement of Creditor Parties to forbear with respect to the Designated Default
shall automatically and without further action terminate and be of no further force and effect, it being expressly agreed that
the effect of such termination will be to permit Creditor Parties to exercise such rights and remedies immediately without any
further notice, passage of time or forbearance of any kind.

 

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(e)          Companies
acknowledge that (i) Default Interest Rate (as defined in Section 1.7 of the Note) charges in the amount of $152,194.89 which have
accrued for the period commencing on April 1, 2018 and ending on September 30, 2018 (the “Specified Default Interest Rate
Charges”) shall continue to accrue and be payable by Companies to Creditor Parties as follows: (i) if the Liabilities
have been indefeasibly paid in full prior to November 16, 2018, the Specified Default Interest Rate Charges shall be waived by
Creditor Parties, (ii) if the Liabilities have not been indefeasibly paid in full prior to November 16, 2018, $76,097.45 of the
Specified Default Interest Rate Charges shall be automatically due and owing by Companies to Creditor Parties and shall be added
to the Principal Amount of, and as defined in, the Note as of November 16, 2018 unless Creditor Parties shall have received from
Companies payment thereof in cash prior to such date, (ii) if the Liabilities have been indefeasibly paid in full prior to November
23, 2018, the remaining Specified Default Interest Rate Charges in the amount of $76,097.44 shall be waived by Creditor Parties
and (iii) if the Liabilities have not been indefeasibly paid in full prior to November 23, 2018, the remaining Specified Default
Interest Rate Charges in the amount of $76,097.44 shall be automatically due and owing by Companies to Creditor Parties and shall
be added to the Principal Amount of, and as defined in, the Note as of November 23, 2018 unless Creditor Parties shall have received
payment thereof in cash prior to such date. Notwithstanding the foregoing, the Specified Default Interest Rate Charges shall be
automatically due and owing by Companies to Creditor Parties upon the occurrence of a Forbearance Default and shall be added to
the Principal Amount of, and as defined in, the Note on the date of such occurrence, except to the extent previously added to principal
at an earlier date pursuant to this Section 3(e). Companies further acknowledge that the Default Interest Rate applies on and after
October 1, 2018 and amounts related thereto are payable in cash in accordance with the terms of the Note.

 

(f)           The
occurrence of any Event of Default (other than the Designated Default) shall constitute a “Forbearance Default.” As
of the date hereof, neither the Companies nor the Creditor Parties have any actual knowledge of any Events of Default other than
the Designated Default.

 

(g)          Subject
only to Section 3(c) of this Amendment Agreement, Creditor Parties reserve the right, in their sole discretion, to exercise any
or all of their rights and remedies under the Purchase Agreement, the Related Agreements and applicable law as a result of any
Event of Default (other than the Designated Default), and no Creditor Party has waived any of such rights or remedies, and nothing
in this Amendment Agreement, and no delay on their part in exercising any such rights or remedies, should be construed as a waiver
of any such rights or remedies.

 

4.            Amendments.
Subject to satisfaction of the conditions of effectiveness set forth in Section 9 of this Amendment Agreement:

 

(a)          Clause
(ii) of Section 8.23(a) of the Purchase Agreement is hereby amended and restated in its entirety to provide as follows:

 

“(ii)
For the calendar months ending July 31, 2018, August 31, 2018, September 30, 2018, October 31, 2018 and November 30, 2018 Companies
will not permit Gross Profit (as hereafter defined) as of the end of such calendar month to be less than zero percent (0%) of Companies’
revenue (determined in accordance with GAAP) for such calendar month.”

 

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(b)          The
definition of “Applicable Net Debt” set forth in Section 8.23(b) of the Purchase Agreement is hereby amended and restated
in its entirety to provide as follows:

 

“Applicable
Net Debt” means, at the date of determination, the outstanding principal amount of the Notes less (X) cash and
cash equivalents on deposit in the Agent Controlled Account plus (Y) (i) during the period commencing on and including July
2, 2018 and ending on and including December 2, 2018, zero ($0) and (ii) on and after December 3, 2018, $230,000, minus
(Z) during the period commencing on and including July 2, 2018 and ending on and including December 2, 2018, the sum of (1) $187,600
and (2) any and all forbearance fees and Default Interest Rate (as defined in the Note) charges which have been added to the Principal
Amount of, and as defined in, the Note in accordance with the terms of the Forbearance and Fifth Amendment Agreement dated as of
October 5, 2018 by and among Companies and Creditor Parties.”

 

(c)          Notwithstanding
anything contained in Section 1.4 of the Note to the contrary, (a) Companies shall, as a condition to effectiveness of this Amendment
Agreement, redeem a portion of the outstanding principal balance of the Note in an aggregate amount equal to One Million Dollars
($1,000,000) (the “Specified Redemption”) at a prepayment price equal to One Million ($1,000,000) plus the accrued
but unpaid interest on such principal amount through and including the date of such prepayment (the “Specified Redemption
Amount”) and (b) solely in connection with Companies’ election to make the Specified Redemption, Creditor Parties
hereby waive the fifteen (15) day prior written redemption notice requirement and the prepayment premium under Section 1.4 of the
Note. The Specified Redemption shall be made in accordance with the terms of Section 5 of this Amendment Agreement. Immediately
after giving effect to the Specified Redemption, the outstanding principal balance of the Note shall be automatically reduced to
Five Million Twenty-Nine Thousand Two Hundred Nineteen Dollars and Seven Cents ($5,029,219.07) without further action on the part
of Creditor Parties or any Company.

 

(d)          The
Note is hereby amended to reflect the terms of the Fourth Amended and Restated Secured Term Note in the form attached hereto as
Exhibit A.

 

5.            Specified
Redemption. Companies hereby direct the Agent, on or after October 5, 2018, to (a) release the Specified Redemption Amount
from the Agent Controlled Account and (b) utilize the proceeds thereof to cause the Specified Redemption to be made.

 

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6.            Forbearance
and Amendment Fee; Companies’ Deferral of Certain Payments.

 

(a)          In
consideration of Creditor Parties’ agreements contained herein, the Companies shall jointly and severally pay to Purchaser
a forbearance and amendment fee:

 

(i)         in
an amount equal to $250,000 (the “Initial Forbearance Fee”), which such Initial Forbearance Fee shall be payable
as of October 1, 2018 by the addition on such date of the amount of such Initial Forbearance Fee to the Principal Amount owing
under and as defined in the Note such that immediately after giving effect to such addition (but prior to giving effect to the
Specified Redemption) the outstanding Principal Amount of the Note shall equal Six Million Twenty-Nine Thousand Two Hundred Nineteen
Dollars and Seven Cents ($6,029,219.07).

 

(ii)        in
an amount equal to $100,000, which such fee shall be payable on November 19, 2018, if the Liabilities have not been indefeasibly
paid in full prior to such date, by the addition on such date of such amount to the Principal Amount owing under and as defined
in the Note.

 

(iii)       in
an amount equal to $125,000, which such fee shall be payable on November 26, 2018, if the Liabilities have not been indefeasibly
paid in full prior to such date, by the addition on such date of such amount to the Principal Amount owing under and as defined
in the Note.

 

(iv)       in
an amount equal to $150,000, which such fee shall be payable on December 3, 2018 if the Liabilities have not been indefeasibly
paid in full prior to such date, by the addition on such date of such amount to the Principal Amount owing under and as defined
in the Note.

 

Notwithstanding the foregoing,
all forbearance and amendment fees provided for in this Section 6(a) shall be automatically due and owing by Companies to Creditor
Parties upon the occurrence of a Forbearance Default and shall be added to the Principal Amount of, and as defined in, the Note
on the date of such occurrence.

 

(b)          Each
Company agrees that, prior to the indefeasible payment in full of all Liabilities, it will defer payment of any and all compensation
or amounts due to Nik Raman, Scott Tepfer and the Companies’ financial consultants and legal retainer payments to the Companies’
lawyers (collectively, the “Deferral Parties”) with respect to services provided during the period commencing
on July 2, 2018 and ending on October 1, 2018, except that the Companies may make ordinary and customary commission payments to
Scott Tepfer for sales made by Mr. Tepfer of the Companies’ inventory in the ordinary course of business.

 

7.            Representations
and Warranties. Each Company hereby represents and warrants to Purchasers and Agent that:

 

(a)          The
execution, delivery and performance of this Amendment Agreement (i) have been duly authorized by each Company, (ii) are not in
contravention of the certificate of incorporation, bylaws, certificate of formation or operating agreement of any Company or of
any indenture, agreement or undertaking to which any Company is a party or by which any Company is bound and (iii) are within each
Company’s powers.

 

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(b)          This
Amendment Agreement is the legal, valid and binding obligation of each Company, enforceable in accordance with its terms, except
as may be limited by applicable bankruptcy, insolvency, reorganization or similar laws relating to creditors’ rights generally
or by equitable principles.

 

(c)          The
representations and warranties of each Company contained in the Purchase Agreement and the Related Agreements are and will be true,
correct and complete in all respects on and as of the date hereof to the same extent as though made on and as of such date, except
to the extent that such representations and warranties specifically relate to an earlier date, in which case they were true, correct
and complete as of such earlier date.

 

(d)          Each
of the Deferral Parties has agreed to the deferral of the payments referenced in Section 6(b).

 

8.            General
Release. Each Company and each Guarantor (by its acknowledgment set forth below) hereby releases, waives and forever relinquishes
all claims, demands, obligations, liabilities and causes of action of whatever kind or nature, whether known or unknown, which
it has, may have, or might assert now or in the future against any Creditor Party and/or its, officers, directors, employees, agents,
attorneys, accountants, consultants, successors and assigns, directly or indirectly, arising out of, based upon, or in any manner
connected with any transaction, event, circumstance, action, failure to act or occurrence of any sort or type, whether known or
unknown, which occurred, existed, or was taken or permitted prior to the date hereof. The inclusion of this paragraph in this Amendment
Agreement, and the execution of this Amendment Agreement by Creditor Parties, does not constitute an acknowledgment or admission
by any Creditor Party of liability for any matter, or a precedent upon which any liability may be asserted.

 

9.            Conditions
of Effectiveness. This Amendment Agreement shall become effective upon receipt by Agent (unless waived by Agent in writing)
of the following, each in form and substance satisfactory to Agent in its sole discretion: (a) this Amendment Agreement executed
by each Company and each Guarantor, (b) an original executed Fourth Amended and Restated Secured Term Note in the form attached
hereto as Exhibit A, (c) corporate resolutions for each Company authorizing the transactions contemplated by this Amendment
Agreement and (d) payment by Companies of all fees and expenses incurred by Agent (i) in connection with the transactions contemplated
by this Amendment Agreement, including, without limitation, the fees of ***************, counsel to Agent and Purchasers and
(ii) for matters described in Section 8.32 of the Purchase Agreement.

 

10.          Effect
on Note Purchase Agreement.

 

(a)          Upon
the effectiveness of this Amendment Agreement, each reference in the Purchase Agreement to “this Agreement,” “hereunder,”
“hereof,” “herein” or words of like import shall mean and be a reference to the Purchase Agreement as amended
hereby.

 

(b)          Except
as specifically amended herein, the Agreement and all other documents, instruments and agreements executed and/or delivered in
connection therewith, shall remain in full force and effect, and are hereby ratified and confirmed.

 

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(c)          The
execution, delivery and effectiveness of this Amendment Agreement shall not operate as a waiver of any right, power or remedy of
Agent, nor constitute a waiver of any provision of the Purchase Agreement, or any other documents, instruments or agreements executed
and/or delivered under or in connection therewith.

 

11.          Miscellaneous.
Section 13 of the Purchase Agreement is incorporated by reference into this Amendment Agreement without the necessity of fully
repeating it.

 

[Balance of page intentionally left blank;
signature page follows]

 

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IN WITNESS WHEREOF,
the parties hereto have caused this Amendment Agreement to be duly executed and delivered by their duly authorized officers as
of the date first set forth above.

 

	 	COMPANIES:
	 	 	 
	 	USELL.COM, INC.
	 	 	 
	 	By:	 
	 	 	Name: Nikhil Raman
	 	 	Title: Chief Executive Officer

 

	 	BST DISTRIBUTION, INC.
	 	 	 
	 	By:	 
	 	 	Name: Brian Tepfer
	 	 	Title: Chief Executive Officer

 

	 	WE SELL CELLULAR LLC
	 	 	 
	 	By:	 
	 	 	Name: Nikhil Raman
	 	 	Title: Manager

 

     

     

    

 

	 	PURCHASER:
	 	 	 	 
	 	 	 
	 	By:	 

		Name:	 	 

	 	Title:	 	 

 

	 	AGENT:
	 	 	 	 
	 	 	 
	 	By:	 

		Name:	 	 

	 	Title:	 	 

 

     

     

    

 

	 	GUARANTOR ACKNOWLEDGEMENT
AND AGREEMENT:

 

	UPSTREAM PHONE COMPANY USA, INC., a Delaware corporation
	 	 	 
	By:	 	 
	 	Name: Nikhil Raman	 
	 	Title: President	 

 

	UPSTREAM PHONE HOLDINGS, INC., a Delaware corporation
	 	 	 
	By:	 	 
	 	Name: Nikhil Raman	 
	 	Title: President	 

 

	HD CAPITAL HOLDINGS LLC,
 a Delaware limited liability company
	 	 	 
	By:	 	 
	 	Name: Daniel Brauser	 
	 	Title: ManagerExhibit 10.2

 

EXECUTION VERSION

 

THIS NOTE IS ISSUED
WITH ORIGINAL ISSUE DISCOUNT. BEGINNING NO LATER THAN 10 DAYS AFTER THE ISSUE DATE OF THIS NOTE, USELL.COM, INC., A DELAWARE CORPORATION,
LOCATED AT 171 MADISON AVENUE, 17TH FLOOR, NEW YORK, NEW YORK 10016, SHALL PROMPTLY MAKE AVAILABLE TO THE HOLDER OR HOLDERS OF
THIS NOTE UPON REQUEST THE INFORMATION DESCRIBED IN TREASURY REGULATION SECTION 1.1275-3(b)(1)(i).

 

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THIS NOTE MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE
ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE
STATE SECURITIES LAWS OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID
ACT OR APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID ACT.

 

THIS NOTE IS REGISTERED
WITH THE AGENT PURSUANT TO SECTION 13.5(b) OF THE PURCHASE AGREEMENT (AS DEFINED BELOW). TRANSFER OF ALL OR ANY PORTION OF THIS
NOTE IS PERMITTED SUBJECT TO THE PROVISIONS SET FORTH IN SUCH SECTION 13.5 WHICH REQUIRE, AMONG OTHER THINGS, THAT NO TRANSFER
IS EFFECTIVE UNTIL THE TRANSFEREE IS REFLECTED AS SUCH ON THE REGISTRY MAINTAINED WITH THE AGENT PURSUANT TO SUCH SECTION 13.5(b).

 

FOURTH AMENDED AND RESTATED SECURED TERM NOTE

 

FOR VALUE RECEIVED, each
of USELL.COM, INC., a Delaware corporation (“USELL”) BST DISTRIBUTION, INC., a New York corporation
(“BST”), WE SELL CELLULAR LLC, a Delaware limited liability company (“WE SELL”; together with USELL
and BST, the “Companies” and each a “Company”), hereby promises to pay to ____________________,
a Delaware limited liability company (the “Holder”) or its registered assigns or successors in interest, the
sum of SIX MILLION TWENTY-NINE THOUSAND TWO HUNDRED NINETEEN DOLLARS AND SEVEN CENTS ($6,029,219.07), together with any accrued
and unpaid interest hereon subject to the terms and conditions set forth herein.

 

Capitalized terms used herein
without definition shall have the meanings ascribed to such terms in that certain Note Purchase Agreement, dated as January 13,
2017 (as amended, restated, modified and/or supplemented from time to time, the “Purchase Agreement”) among
Companies, the Holder, each other Purchaser and _______________________, as agent for the Purchasers (the “Agent”
and together with the Purchasers (including the Holder), collectively, the “Creditor Parties”), pursuant to
which this Fourth Amended and Restated Secured Term Note was issued.

 

     

     

    

 

The following term
shall apply to this Fourth Amended and Restated Secured Term Note (this “Note”):

 

“Maturity Date” shall mean January 13,
2020.

 

ARTICLE I

 

CONTRACT RATE AND AMORTIZATION

 

1.1          Contract
Rate. Subject to Sections 1.7 and 2.9, interest payable on the outstanding principal amount of this Note (the “Principal
Amount”) shall accrue at a rate per annum equal to sixteen percent (16%). Interest shall be (i) calculated on the basis
of a 365 day year and the actual number of days elapsed, and (ii) payable monthly, in arrears, commencing on July 2, 2018, and
on the first business day of each consecutive calendar month thereafter through and including the Maturity Date, and on the Maturity
Date, whether by acceleration or otherwise (each, an “Interest Payment Date”). Interest on the Principal Amount
of this Note that is payable on July 2, 2018, August 1, 2018 and September 4, 2018 shall, in lieu of the payment thereof in cash,
be paid by adding such interest to the Principal Amount of this Note on such Interest Payment Date (all such interest added to
the Principal Amount of this Note, a “PIK Amount”). For all purposes of this Note, all PIK Amounts shall be
treated as Principal Amounts and all references in this Note to the Principal Amount of this Note shall include all PIK Amounts.

 

1.2          Contract
Rate Payments. The Contract Rate shall be paid on each Interest Payment Date with respect to the number of days from, but
excluding, the prior Interest Payment Date (or the issuance date with respect to the first Interest Payment Date) through and
including the applicable Interest Payment Date. Interest shall also be paid in cash on the date of any payment or prepayment of
this Note with respect to the Principal Amount being paid at such time.

 

1.3          Principal
Payments. The outstanding Principal Amount together with any accrued and unpaid interest and any and all other unpaid
amounts which are then owing by Companies to the Holder under this Note, the Purchase Agreement and/or any other Related
Agreement shall be due and payable on the Maturity Date, whether by acceleration or otherwise.

 

1.4          Optional
Prepayment. Companies may redeem the outstanding principal balance of this Note in whole, but not in part, at any time
after July 13, 2018, upon at least fifteen (15) days’ prior written notice delivered to Agent and the Holder, at the
prepayment price of the Applicable Percentage (as hereafter defined) of the outstanding Principal Amount of this Note so
redeemed plus all accrued but unpaid interest hereunder. For purposes hereof, the term “Applicable Percentage”
shall mean (a) if such prepayment occurs prior to November 16, 2018, 100% and (b) if such prepayment occurs on or after
November 16, 2018, 103%.

 

To exercise its right to prepay this Note as provided
in this Section 1.4, Companies must deliver written notice of such election to the Agent and each Purchaser at least fifteen (15)
days prior to the repayment date, as set forth in such notice, and Companies must take the same action with respect to all of the
holders of any other Notes.

 

1.5          Mandatory
Prepayment Events. Unless waived in writing by the Agent, Companies shall prepay this Note (a) from the net proceeds of any
incurrence of Indebtedness or other capital

 

     

     

    

 

(e)          Bankruptcy.
Any Company or any of its Subsidiaries shall (i) apply for, consent to or suffer to exist the appointment of, or the taking of
possession by, a receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property, (ii) make
a general assignment for the benefit of creditors, (iii) commence a voluntary case under the federal bankruptcy laws (as now or
hereafter in effect), (iv) be adjudicated a bankrupt or insolvent, (v) file a petition seeking to take advantage of any other law
providing for the relief of debtors, (vi) acquiesce to, without challenge within fifteen (15) days of the filing thereof, or failure
to have dismissed, within forty-five (45) days, any petition filed against it in any involuntary case under such bankruptcy laws,
or (vii) take any action for the purpose of effecting any of the foregoing;

 

Judgments. Attachments
or levies are made upon any Company’s or any of its Subsidiary’s assets or a judgment is rendered against any Company
or any of its Subsidiaries or any of its or their property involving a liability which is in excess of $100,000 in the aggregate
with any other such liability (other than liability covered under available insurance) or could reasonably be expected to have
a Material Adverse Effect and which shall not have been vacated, discharged, stayed or bonded within thirty (30) days from the
entry thereof;

 

(g)          Insolvency.
Any Company or any of its Subsidiaries shall admit in writing its inability, or be generally unable, to pay its debts as they
become due or cease operations of its present business;

 

(h)          Change
of Control. A Change of Control (as defined below) shall occur with respect to any Company or any Guarantor, unless the
Agent shall have expressly consented to such Change of Control in writing. A “Change of Control” shall mean (i)
any event or circumstance as a result of which any “Person” or “group” (as such terms are defined in
Sections 13(d) and 14(d) of the Exchange Act, as in effect on the date hereof), other than a Holder of a Note, is or becomes
the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under the Exchange Act), directly or indirectly,
of 20% or more on a fully diluted basis of the then outstanding voting equity interests of any Company or any Guarantor
(other than a “Person” or “group” that beneficially owns 20% or more of such outstanding voting
equity interests of any Company or any Guarantor as of the Closing Date), (ii) any event or circumstance as a result of which
USELL shall at any time own less than 100% of all issued and outstanding equity interests of any of the following entities:
HD Capital Holdings LLC, Upstream Phone Company USA, Inc., BST Distribution, Inc. and/or Upstream Holdings, Inc., (iii) any
event or circumstance as a result of which BST Distribution, Inc. shall at any time own less than 100% of all issued an
outstanding equity interests of We Sell Cellular, LLC, (iv) any change in the composition of the Board of Directors of any
Company or any Guarantor (the “Board”) such that the Continuing Directors (as defined below) cease for any
reason to constitute at least a majority of the Board (as used herein, “Continuing Directors” means those
individuals who as of the Closing Date constituted the Board and each other director that was elected by at least 66 2/3% of
the Continuing Directors, or as applicable, such director’s nomination for election to the Board is recommended by 66
2/3% of the Continuing Directors), (v) any Company or any of the Guarantors merges or consolidates with, or sells all or
substantially all of its assets to, any other Person, or (vi) the consummation of a purchase, tender or exchange offer made
to, and accepted by, the holders of more than a majority of the outstanding shares of common stock of any Company or any
Guarantor. Notwithstanding the foregoing or anything contained herein to the contrary, clause (i) of this Section 1.6(h)
shall not apply to those Persons or “groups” listed on Schedule 1.6(h) hereto, provided that such Persons
or “groups” do not beneficially own 50% or more on a fully diluted basis of the then outstanding voting equity
interests of any Company or any Guarantor;

 

     

     

    

 

(i)          Failure
of Liens. The Agent’s lien on any Collateral deemed material by Agent shall fail or cease to be a first priority
validly perfected security interest; or

 

(ii)          Breach
of Covenant. The Company or any of its Subsidiaries breaches any covenant set forth in Section 5 or 8 of the Purchase
Agreement.

 

1.7          Default
Interest. On and after April 1, 2018, Companies shall pay additional interest on the outstanding Principal Amount of this
Note, at a rate per annum which is determined by adding five percent (5.0%) per annum to the Contract Rate (“Default
Interest Rate”), and all outstanding obligations under this Note, the Purchase Agreement and each other Related
Agreement, including unpaid interest, shall continue to accrue interest at the Default Interest Rate until such time as all
Liabilities are indefeasibly paid in full.

 

1.8          Acceleration. If
any Event of Default shall have occurred and be continuing, (a) if such event is an Event of Default specified in
Section 1.6(e), all of the Notes at the time outstanding shall automatically become immediately due and payable together with
interest accrued thereon, without any requirement of presentment, demand, protest or notice of any kind, all of which are
hereby waived, and (b) if such event is not an Event of Default specified in Section 1.6(e) (as a result of which the Notes
have already been accelerated), the Agent or the holders of a majority of the outstanding principal amount of the Notes may
at their option, by notice in writing to Companies, declare all of the Notes to be, and all of the Notes shall thereupon be
and become, immediately due and payable together with interest accrued thereon, without any requirement of further
presentment, demand, protest or other notice of any kind, all of which are hereby waived and with the consent of the Creditor
Parties, the Agent shall exercise on behalf of the Creditor Parties (including the holders of all of the Notes) all rights
and remedies available to them under the Security Agreement and any other Related Agreement.

 

ARTICLE II

 

MISCELLANEOUS

 

2.1          Cumulative
Remedies. The remedies under this Note shall be cumulative.

 

2.2          Failure
or Indulgence Not Waiver. No failure or delay on the part of the Holder (or the Agent on behalf of the Holder) hereof in
the exercise of any power, right or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such power, right or privilege preclude other or further exercise thereof or of any other right, power or
privilege. All rights and remedies existing hereunder are cumulative to, and not exclusive of, any rights or remedies
otherwise available.

 

2.3          Notices.
Any notice herein required or permitted to be given shall be given in writing in accordance with the terms of the Purchase
Agreement.

 

2.4          Amendment
Provision. The term “Note” and all references thereto, as used throughout this instrument, shall mean
this instrument as originally executed, or if later amended or supplemented, then as so amended or supplemented, and any
successor instrument as such successor instrument may be amended or supplemented.

 

     

     

    

 

2.5          Assignability. This
Note shall be binding upon each Company and its successors and assigns, and shall inure to the benefit of the Holder and its
successors and assigns, and may be assigned by the Holder in accordance with the requirements of the Purchase Agreement.
No Company may assign any of its obligations under this Note without the prior written consent of the Holder, any such
purported assignment without such consent being null and void.

 

2.6          Cost
of Collection. In case of the occurrence of an Event of Default under this Note, Companies shall pay the Holder (and the
Agent on behalf of the Holder) the Holder’s (and the Agent’s) costs of collection, including reasonable fees
associated with the hiring of experts and reasonable attorneys’ fees.

 

2.7          Governing Law, Jurisdiction and Waiver of Jury
Trial.

 

(a)          THIS
NOTE SHALL BE GOVERNED BY AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES
OF CONFLICTS OF LAW.

 

(b)          EACH
COMPANY HEREBY CONSENTS AND AGREES THAT THE STATE AND/OR FEDERAL COURTS LOCATED IN THE COUNTY OF NEW YORK, STATE OF NEW YORK SHALL
HAVE EXCLUSIVE JURISDICTION TO HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN ANY COMPANY, ON THE ONE HAND, AND THE HOLDER AND/OR
ANY OTHER CREDITOR PARTY, ON THE OTHER HAND, PERTAINING TO THIS NOTE OR ANY OF THE OTHER RELATED AGREEMENTS OR TO ANY MATTER ARISING
OUT OF OR RELATED TO THIS NOTE OR ANY OF THE RELATED AGREEMENTS; PROVIDED, THAT EACH COMPANY ACKNOWLEDGES THAT ANY APPEALS
FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT LOCATED OUTSIDE OF THE COUNTY OF NEW YORK, STATE OF NEW YORK; AND FURTHER
PROVIDED, THAT NOTHING IN THIS NOTE SHALL BE DEEMED OR OPERATE TO PRECLUDE THE HOLDER AND/OR ANY OTHER CREDITOR PARTY FROM
BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION WHERE ANY OF THE COLLATERAL IS LOCATED TO COLLECT THE LIABILITIES
(AS DEFINED IN THE SECURITY AGREEMENT), TO REALIZE ON THE COLLATERAL (AS DEFINED IN THE SECURITY AGREEMENT) OR ANY OTHER SECURITY
FOR THE OBLIGATIONS, OR TO ENFORCE A JUDGMENT OR OTHER COURT ORDER IN FAVOR OF THE HOLDER AND/OR ANY OTHER CREDITOR PARTY. EACH
COMPANY EXPRESSLY SUBMITS AND CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT, AND EACH
COMPANY HEREBY WAIVES ANY OBJECTION WHICH IT MAY HAVE BASED UPON LACK OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON
CONVENIENS. EACH COMPANY HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY SUCH ACTION
OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED
TO SUCH COMPANY AT THE ADDRESS SET FORTH IN THE PURCHASE AGREEMENT

 

AND THAT SERVICE SO MADE SHALL BE DEEMED
COMPLETED UPON THE EARLIER OF SUCH COMPANY’S ACTUAL RECEIPT THEREOF OR FIVE (5) DAYS AFTER DEPOSIT IN THE U.S. MAIL, PROPER
POSTAGE PREPAID.

 

     

     

    

 

(c)          EACH
COMPANY DESIRES THAT ITS DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE, TO ACHIEVE THE BEST COMBINATION
OF THE BENEFITS OF THE JUDICIAL SYSTEM AND/OR OF ARBITRATION, EACH COMPANY HERETO WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION,
SUIT, OR PROCEEDING BROUGHT TO RESOLVE ANY DISPUTE, WHETHER ARISING IN CONTRACT, TORT, OR OTHERWISE BETWEEN THE HOLDER AND/OR ANY
OTHER CREDITOR PARTY, ON THE ONE HAND, AND EACH COMPANY, ON THE OTHER HAND, ARISING OUT OF, CONNECTED WITH, RELATED OR INCIDENTAL
TO THE RELATIONSHIP ESTABLISHED BETWEEN THEM IN CONNECTION WITH THIS NOTE, ANY OTHER RELATED AGREEMENT OR THE TRANSACTIONS RELATED
HERETO OR THERETO.

 

2.8          Severability. In
the event that any provision of this Note is invalid or unenforceable under any applicable statute or rule of law, then such
provision shall be deemed inoperative to the extent that it may conflict therewith and shall be deemed modified to
conform with such statute or rule of law. Any such provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of this Note.

 

2.9          Maximum
Payments. Nothing contained herein shall be deemed to establish or require the payment of a rate of interest or other
charges in excess of the maximum permitted by applicable law. In the event that the rate of interest required to be paid or
other charges hereunder exceed the maximum rate permitted by such law, any payments in excess of such maximum rate shall be
credited against amounts owed by Companies to the Holder and thus refunded to Companies.

 

2.10  Security
Interest. The Agent, for the ratable benefit of the Creditor Parties, has been granted a security interest in certain assets
of Companies and the Guarantors as more fully described in the Security Agreement and the other Related Agreements.

 

2.11   Construction; Counterparts.
Each party acknowledges that its legal counsel participated in the preparation of this Note and, therefore, stipulates that the
rule of construction that ambiguities are to be resolved against the drafting party shall not be applied in the interpretation
of this Note to favor any party against the other. Unless the context otherwise requires, (i) words in the singular or plural include
the singular and plural and pronouns stated in either the masculine, the feminine or neuter gender shall include the masculine,
feminine and neuter, (ii) the words “hereof,” “herein” and words to similar effect refer to this Note in
its entirety, and (iii) the use of the word “including” in this Note shall be by way of example rather than limitation.
This Note may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all
of which when taken together shall constitute one and the same instrument. Any signature delivered by a party by facsimile or electronic
transmission shall be deemed to be an original signature hereto.

 

     

     

    

 

2.12 Registered Obligation.
This Note shall be registered (and such registration shall thereafter be maintained) as set forth in Section 13.5(b) of the Purchase
Agreement. Notwithstanding any document, instrument or agreement relating to this Note to the contrary, transfer of this Note (or
the right to any payments of principal or stated interest thereunder) may only be effected by (i) surrender of this Note and either
the reissuance by Companies of this Note to the new holder or the issuance by Companies of a new instrument to the new holder or
(ii) registration of such holder as an assignee in accordance with Section 13.5 of the Purchase Agreement.

 

2.13 Amendment and Restatement.
This Note amends and restates in its entirety the Third Amended and Restated Secured Term Note made by Companies in favor of Holder,
as of July 2, 2018, in the original principal amount of $5,547,600 (the “Prior Note”). This Note does not constitute
a novation of the Prior Note and all amounts outstanding as of the date hereof under the Prior Note shall remain outstanding under
this Note.

 

[Balance of page intentionally left blank; signature
page follows]

 

     

     

    

 

IN WITNESS WHEREOF, each Company has caused
this Fourth Amended and Restated Secured Term Note to be signed in its name effective as of this 1’ day of October, 2018.

 

	 	USELL.COM, INC
	 	 
	 	By:	 
	 	 	Name : Nikhil Raman
Title Chief Executive Officer

 

	 	BST DISTRIBUTION, INC.
	 	 
	 	By:	 
	 	 	Name: Brian Tepfer
Title: Chief Executive Officer

  

	 	WE
SELL CELLULAR LLC
	 	 
	 	By:	      
	 	 
	Name Nikhil Raman

                    Title: Manager

 

	 	
        

        

        SIGNATURE PAGE TO

        FOURTH AMENDED AND RESTATED

SECURED TERM NOTE

 

     

     

    

 

IN WITNESS WHEREOF,
each Company has caused this Fourth Amended and Restated Secured Term Note to be signed in its name effective as of this 1st
day of October, 2018.

 

	 	USELL.COM, INC.
	 	 
	 	By:	 
	 	 	Name: Nikhil Raman
Title: Chief Executive Officer

 

	 	BST DISTRIBUTION, INC.
	 	 
	 	By:	 
	 	 	Name: Brian Tepfer
Title: Chief Executive Officer

  

	 	WE
SELL CELLULAR LLC
	 	 
	 	By:	     
	 	 
	Name: Nikhil Raman

                    Title: Manager

 

	 	
        

        

        SIGNATURE PAGE TO

        FOURTH AMENDED AND RESTATED

SECURED TERM NOTE

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