Document:

EX-10.3

 Exhibit 10.3 

LOCK-UP, VOTING AND STANDSTILL AGREEMENT 

THIS LOCK-UP, VOTING AND
STANDSTILL AGREEMENT (as amended, restated, supplemented or otherwise modified in accordance with Section 10.3, this “Agreement”) is made and entered into as of
December 1, 2020 by and between MOHAWK GROUP HOLDINGS, INC., a Delaware corporation (the “Company”), and 9830 MACARTHUR LLC, a Wyoming
limited liability company (the “Stockholder”). 
 RECITALS 

WHEREAS, pursuant to that certain Asset Purchase Agreement, dated as of even date herewith (the
“Purchase Agreement”), by and among the Company, Truweo, LLC, a Delaware limited liability company and wholly owned subsidiary of the Company, the Stockholder, Reliance Equities Group, LLC, a Wyoming limited liability company
(“Reliance”), ZN Direct LLC, a Wyoming limited liability company (“ZN” collectively with the Stockholder and Reliance, “Sellers” and each, a “Seller”) and Jelena Puzovic, the
Company issued 4,056,000 shares of its common stock, $0.0001 par value per share (the “Common Stock”), to the Stockholder (such shares, together with any Common Stock owned by the Sellers prior to the date hereof, being collectively
referred to herein as the “Existing Securities”) for the benefit of the Sellers thereunder; 

WHEREAS, as of the date hereof, the Stockholder will file a Schedule 13D or 13G, as applicable, under the
U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), with the U.S. Securities and Exchange Commission (the “SEC”), indicating the Stockholder’s Beneficial Ownership of the Existing Securities,
representing approximately 15.51% of the total outstanding Voting Securities (as defined below) as of the date hereof; and 

WHEREAS, as a condition to entering into the Purchase Agreement, the Company has required that the
Stockholder enter into this Agreement, and the Stockholder, in order to induce the Company to enter into the Purchase Agreement, desires to enter into this Agreement. 

NOW, THEREFORE, in consideration of the foregoing premises and the
mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 

AGREEMENT 
  

	1.	 DEFINITIONS. 

1.1    Defined Terms. As used in this Agreement, the following terms shall have the following meanings: 

(a)    “Affiliate” or “Associate” shall have the respective meanings ascribed to
such terms in Rule 12b-2 of the General Rules and Regulations under the Exchange Act. 

(b)    A Person shall be deemed the “Beneficial Owner” or to have “Beneficial
Ownership” of and shall be deemed to “beneficially own” any securities which such Person or any of such Person’s Affiliates or Associates is deemed to beneficially own, within the meaning of Rules 13d-3 and 13d-5 of the General Rules and Regulations under the Exchange Act. 

Notwithstanding anything in this definition of Beneficial Ownership to the contrary, the phrase, “then outstanding,” when used with reference to a
Person’s Beneficial Ownership of securities of the Company, shall mean the number of such securities then issued and outstanding together with the number of such securities not then actually issued and outstanding which such Person would be
deemed the Beneficial Owner hereunder. 

  
 1. 

 (c)    “Company Acquisition Transaction” shall
mean (i) the commencement (within the meaning of Rule 14d-2 of the General Rules and Regulations under the Exchange Act) of a tender or exchange offer by a third party for at least fifteen percent (15%)
of the then outstanding capital stock of the Company or any direct or indirect Subsidiary of the Company, (ii) the commencement by a third party of a proxy contest with respect to the election of any directors of the Company, (iii) any
sale, license, lease, exchange, transfer, disposition or acquisition of any portion of the business or assets of the Company or any direct or indirect Subsidiary of the Company (other than in the ordinary course of business), or (iv) any
merger, consolidation, business combination, share exchange, reorganization, recapitalization, restructuring, liquidation, dissolution or similar transaction or series of related transactions involving the Company or any direct or indirect
Subsidiary of the Company. 
 (d)    “Group” shall have the meaning set forth in
Section 13(d)(3) of the Exchange Act and Rule 13d-5 of the General Rules and Regulations under the Exchange Act. 

(e)    “Subsidiary” of any Person shall mean any corporation or other entity of which a
majority of the voting power of the voting equity securities or equity interest is owned, directly or indirectly, by such Person. 

(f)    “Voting Securities” shall mean the shares of Common Stock; provided,
however, that, “Voting Securities,” when used in this Agreement in connection with a specific reference to any Person other than the Company, shall mean the capital stock (or equity interest) with the greatest voting power of
such other Person or, if such other Person is a Subsidiary of another Person, the Person or Persons which ultimately control such first-mentioned Person. 

1.2    Capitalized Terms. All other capitalized terms used herein but not defined shall have the meanings
ascribed to such terms in the Purchase Agreement. 
  

	2.	 MATERIAL NON-PUBLIC
INFORMATION 

 2.1    Stockholder acknowledges that it is aware, and will
advise each of its representatives who are informed as to the matters that are the subject of the Purchase Agreement and this Agreement, that the United States securities laws may prohibit any person who has received from an issuer material, non-public information from purchasing or selling securities of such issuer or from communicating such information to any other person under circumstances in which it is reasonably foreseeable that such person is
likely to purchase or sell such securities. 
  

	3.	 LOCK-UP 

3.1    Stockholder hereby agrees that it shall not, and shall not authorize, permit or direct any Affiliate or
Associate to, directly or indirectly, (a) sell, pledge, assign, transfer, hypothecate or otherwise dispose of (each a “Transfer”) any Subject Securities, (b) enter into any swap, hedge, or other agreement or arrangement
that transfers to another, in whole or in part, any of the economic consequences of ownership of any Common Stock Beneficially Owned by Stockholder and its Affiliates and Associates, whether any such transaction is to be settled by delivery of
Common Stock or such other securities, in cash or otherwise; (c) engage in any short-selling of any Common Stock Beneficially Owned by Stockholder and its Affiliates and Associates; or (d) publicly announce any intention to do any of the
foregoing, in each case at any time during the period commencing on the Closing Date and ending six months thereafter. For purposes of this Agreement, the term “Subject Securities” means the Existing Securities, including any equity
securities issued or issuable directly or indirectly with respect to such Existing Securities by way of any stock dividend or stock split or in connection with a combination of shares, recapitalization, reclassification, merger, amalgamation,
arrangement, consolidation or other reorganization. 

  
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 3.2    Notwithstanding anything to the contrary in this
Agreement, Stockholder may Transfer shares of Common Stock or any securities convertible into or exchangeable or exercisable for Common Stock: (a) as a bona fide gift or gifts; (b) by will or intestacy; (c) to any trust, partnership
or limited liability company for the direct or indirect benefit of Sellers’ equityholders or the immediate family of Sellers’ equityholders; (d) to a member of Sellers’ equityholders’ immediate family, (e) if such
Transfer occurs by operation of law; or (f) to a nominee or custodian of Sellers’ equityholder or a person or entity to whom a Transfer would be permissible under clauses (a) through (f) above; provided, however,
(i) in case of any such Transfer, it shall be a condition to the Transfer that such donee or transferee execute an agreement stating that such donee or transferee is receiving and holding the Common Stock subject to the lock-up provisions contained in Section 3 of this Agreement and the voting and standstill provisions in Section 4 and Section 5,
respectively, of this Agreement, (ii) any such Transfer shall not involve a disposition for value, and (iii) the Company shall not have any obligation to file, amend or update any resale prospectus or prospectus supplement that includes
the Subject Securities for purposes of reflecting such Transfer. 
 3.3    Failure by Stockholder to provide the
Company with reasonable evidence of compliance with the lock-up provisions contained in Section 3 of this Agreement within two Business Days of any written request by the Company
therefor shall result in the withdrawal of any legal opinion rendered by the Company’s legal counsel respecting the lawful sale of the Subject Securities, and if any of the Subject Securities then being sold by any Stockholder are being sold in
reliance on a Registration Statement, at the option of the Company, such shares of Common Stock may be withdrawn from the Registration Statement. In any such event, “stop transfer” instructions shall be provided to the Company’s
transfer agent regarding the Subject Securities. 
 3.4    Notwithstanding anything to the contrary set forth
herein, the Company may, in its sole discretion and in good faith, at any time and from time to time waive any of the conditions or restrictions contained herein to increase the liquidity of Common Stock or if such waiver would otherwise be in the
best interests of the development of the public trading market for the Common Stock. 
  

	4.	 STANDSTILL 

4.1    Standstill Provisions. Commencing on the date of this Agreement and until the date that is the fifth
(5th) anniversary of the date of this Agreement (the “Standstill Period”), the Stockholder agrees, on behalf of itself and its Affiliates and Associates, that for so long as such
Persons collectively Beneficially Own any Voting Securities, except pursuant to a negotiated transaction with the Stockholder approved by the board of directors of the Company (the “Board”), the Stockholder will not (and will cause
its Affiliates and Associates not to), in any manner, directly or indirectly: 
 (a)    make, effect, initiate,
cause or participate in (i) any acquisition of Beneficial Ownership of any securities of the Company or any securities of any Subsidiary or other Affiliate or Associate of the Company if such acquisition would result in the Stockholder and its
Affiliates and Associates collectively Beneficially Owning twenty five percent (25%) or more of the then outstanding Voting Securities, (ii) any Company Acquisition Transaction, (iii) any “solicitation” of “proxies” (as
those terms are defined in Rule 14a-1 of the General Rules and Regulations under the Exchange Act) or consents with respect to any securities of the Company or (iv) frustrate or seek to frustrate any
Company Acquisition Transaction proposed or endorsed by the Company; 

  
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 (b)    recommend, nominate or seek to nominate any Person to the
Board or otherwise act, alone or in concert with others, to seek to control or influence the management, the Board or policies or governance of the Company; 

(c)    take any action which might force the Company to make a public announcement regarding any of the types of
matters set forth in subsection (a) of this Section 4.1; 
 (d)    request or
propose that the Company (or its directors, officers, employees or agents), directly or indirectly, amend or waive any provision of this Section 4.1, including this subsection (d) or any provisions of
Section 3 of this Agreement; 
 (e)    demand an inspection of the Company’s books
and records whether pursuant to Section 220 of the General Corporation Law of the State of Delaware or otherwise; 

(f)    institute, solicit, assist or join any litigation, arbitration or other proceeding against or involving the
Company or any of its current or former directors or officers (including derivative actions) other than to enforce the provisions of this Agreement or any rights available to the Stockholder under the Purchase Agreement and the Transaction
Documents; 
 (g)    agree or offer to take, or encourage or propose (publicly or otherwise) the taking of, any
action referred to in subsections (a), (b), (c), (d), (e) or (f) of this Section 4.1; 

(h)    assist, induce or encourage any other Person to take any action referred to in subsections (a), (b), (c),
(d),(e) or (f) of this Section 4.1; 
 (i)    enter into any discussions,
negotiations, agreements, understandings or arrangements with any third party with respect to the taking of any action referred to in subsections (a), (b), (c), (d),(e) or (f) of this Section 4.1; or 

(j)    take any action challenging the validity or enforceability of this Section 4.1 of
this Agreement unless the Company is challenging the validity or enforceability of this Agreement. 

4.2    Termination of Standstill Provisions. 

(a)    Subject to Section 4.2(b), the provisions of Section 4.1
shall terminate and be of no further force and effect in the event the Board shall have endorsed, approved, recommended, or resolved to endorse, approve or recommend a Company Acquisition Transaction. 

(b)    All of the provisions of Section 4.1 shall be reinstated and shall apply in full
force according to their terms in the event that: (i) if the provisions of Section 4.1 shall have terminated as the result of a tender offer, and such tender offer (as originally made or as amended or modified) shall
have terminated (without closing) prior to the commencement of a tender offer by the Stockholder or any of its Affiliates or Associates that would have been permitted to be made pursuant to Section 4.2(a) as a result of
such third-party tender offer, (ii) any tender offer by the Stockholder or any of its Affiliates or Associates (as originally made or as extended or modified) that was permitted to be made pursuant to Section 4.2(a)
shall have terminated (without closing); or (iii) if the provisions of Section 4.1 shall have terminated as a result of any action by the Board referred to in Section 4.2(a), and the Board
shall have determined not to take any of such actions (and no such transaction considered by the Board shall have closed) prior to the commencement of a tender offer by the Stockholder that would have been permitted to be made pursuant to
Section 4.2(a) as a result of the initial determination of the Board referred to in Section 4.2(a). 

  
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 (c)    Upon reinstatement of the provisions of
Section 4.1, the provisions of this Section 4.2 shall continue to govern in the event that any of the events described in Section 4.2(a) shall occur. Upon the closing of
any tender offer for or acquisition of any securities of the Company or rights or options to acquire any such securities by the Stockholder or any of its Affiliates or Associates that would have been prohibited by the provisions of
Section 4.1 but for the provisions of this Section 4.2, all provisions of Section 4.1 and Section 4.2 shall terminate. 

4.3    Sales of Shares of Common Stock. During the Standstill Period, the Stockholder will only sell shares
of Common Stock in open market transactions on Nasdaq or on such principal stock exchange as the Common Stock is then listed for trading or in private transactions so long as any sale in a private transaction is not to any Person or Group who the
Stockholder reasonably believes after due inquiry Beneficially Owns or as a result of such transaction would Beneficially Own more than five percent (5%) of the then outstanding Voting Securities. 

 

	5.	 VOTING OF STOCKHOLDER SHARES.

 5.1    Shares Held Subject to Agreement. Until the Termination Date, for so long
as the Stockholder and its Affiliates and Associates collectively Beneficially Own any Common Stock or any other Voting Securities, the Stockholder agrees to hold all such Common Stock or other Voting Securities registered in such Stockholder’s
name or Beneficially Owned by such Stockholder as of the date hereof and any and all other voting securities of the Company legally or beneficially acquired by them after the date hereof (hereinafter collectively referred to as the
“Stockholder Shares”) subject to, and to vote the Stockholder Shares in accordance with, the provisions of this Agreement. 

5.2    Vote Required. At all times prior to the Termination Date, the Stockholder shall timely vote in
person or by proxy at each annual or special meeting of the Company’s stockholders (or shall consent to vote pursuant to an action by written consent of the holders of capital stock of the Company, as and if permitted by the Company’s
bylaws) all such Stockholder Shares in accordance with the recommendations of the Board on each matter presented to the Company’s stockholders at such meeting or consent solicitation as set forth in the applicable definitive proxy statement,
including without limitation the election, removal and/or replacement of directors. 
 5.3    Irrevocable
Proxy. The Stockholder hereby constitutes and appoints the Company with full power of substitution, as the proxy of such stockholder with respect to all matters in accordance with Section 5, and hereby authorizes the
Company to represent and to vote, if and only if such stockholder: (a) fails to vote; or (b) attempts to vote (whether by proxy, in person or by written consent), in a manner which is inconsistent with the terms of this Agreement, all of
the Stockholder Shares in accordance with the recommendation of the Board on each matter presented to the Company’s stockholders at any annual or special meeting of the Company’s stockholders or consent solicitation, in each case, as
required pursuant to the terms and provisions of this Agreement. The proxy granted pursuant to the immediately preceding sentence is coupled with an interest and shall be irrevocable unless and until this Agreement terminates pursuant to
Section 9 hereof. The Stockholder hereby revokes any and all previous proxies with respect to the Stockholder Shares and shall not hereafter, unless and until this Agreement terminates pursuant to
Section 9 hereof, purport to grant any other proxy or power of attorney with respect to any of the Stockholder Shares, deposit any of such Stockholder Shares into a voting trust or enter into any agreement (other than this
Agreement), arrangement or understanding with any Person, directly or indirectly, to vote, grant any proxy or give instructions with respect to the voting of any of such Stockholder Shares, in each case, with respect to any matter presented to the
Company’s stockholders for approval at any annual or special meeting of the Company’s stockholders or written consent. 

  
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	6.	 REPRESENTATIONS AND WARRANTIES. 

6.1    Each party hereto represents and warrants to the other as follows: 

(a)    Authorization. Such party has the requisite power, authority and legal capacity to execute, deliver
and perform and to consummate the transactions contemplated by this Agreement. This Agreement constitutes a legal, valid and binding obligation of such party, enforceable against such party in accordance with its terms, except as such enforcement
may be limited by any applicable bankruptcy, insolvency, moratorium or similar law affecting creditors’ rights generally. 

(b)    No Consents. No consent of any Governmental Authority or other Person is required to be obtained by
such party in connection with the execution and delivery by such party of this Agreement. 
 6.2    The
Stockholder represents and warrants to the Company that as of the date hereof, the Stockholder and its Affiliates and Associates collectively Beneficially Own 4,056,000 shares of Common Stock and have no other interest in the capital stock of the
Company. 
 6.3    The Stockholder understands and acknowledges that the Company is entering into the Purchase
Agreement in reliance upon the Stockholder’s execution, delivery and performance of this Agreement. 
  

	7.	 LEGEND. 

7.1    Concurrently with the execution of this Agreement, there shall be imprinted or otherwise placed on the
book-entry statements representing the Stockholder Shares the following restrictive legend (the “Legend”): 
 “THE
SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THE TERMS AND CONDITIONS OF A LOCK-UP, VOTING AND STANDSTILL AGREEMENT WHICH PLACES CERTAIN RESTRICTIONS ON THE TRANSFER AND VOTING OF THE SHARES
REPRESENTED HEREBY. ANY PERSON ACCEPTING ANY INTEREST IN SUCH SHARES SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SUCH AGREEMENT. A COPY OF SUCH LOCK-UP, VOTING AND STANDSTILL
AGREEMENT WILL BE FURNISHED TO THE RECORD HOLDER OF THIS CERTIFICATE WITHOUT CHARGE UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS.” 

7.2    The Stockholder agrees that, during the term of this Agreement, it will not remove, and will not permit to
be removed (upon registration of transfer, reissuance of otherwise), the Legend from any such book-entry statements and will place or cause to be placed the Legend on any new book-entry statements issued to represent Stockholder Shares theretofore
represented by a book-entry statements carrying the Legend. The Stockholder will not request that any of the Stockholder Shares be converted from book-entry format to certificated shares. 

8.    SUCCESSORS. The provisions of this Agreement shall be binding upon the
successors in interest to any of the Stockholder Shares. The Company shall not permit the transfer of any of the Stockholder Shares on its books or issue a new certificate representing any of the Stockholder Shares unless and until the Person to
whom such security is to be transferred shall have executed a written agreement, substantially in the form of this Agreement, pursuant to which such Person becomes a party to this Agreement and agrees to be bound by all the provisions hereof as if
such Person were a Stockholder hereunder. 

  
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 9.    TERMINATION. This
Agreement shall continue in full force and effect from the date hereof through the earliest of the following dates, on which date (the “Termination Date”) it shall terminate in its entirety on the
earlier of: (a) the date that is the fifth (5th) anniversary of the date of this Agreement and (b) the date of the closing of a sale, lease, or other disposition of all or substantially
all of the Company’s assets or the Company’s merger into or consolidation with any other corporation or other entity, or any other corporate reorganization, in which the holders of the Company’s outstanding voting stock immediately
prior to such transaction own, immediately after such transaction, securities representing less than 50% of the voting power of the corporation or other entity surviving such transaction; provided, however, that this clause
“(b)” shall not apply to a merger effected exclusively for the purpose of changing the domicile of the Company; and (c) the date as of which this Agreement is terminated by the written consent of the Company and the holders of at
least 75% of the Stockholder Shares. 
  

	10.	 MISCELLANEOUS. 

10.1    Specific Performance. The parties hereto agree that irreparable damage would occur in the event that
any of the provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. Accordingly, each of the parties hereto shall be entitled to enforce specifically the provisions of this Agreement,
including obtaining an injunction or injunctions to prevent breaches or threatened breaches of this Agreement, in any court designated to resolve disputes concerning this Agreement (or, if such court lacks subject matter jurisdiction, in any
appropriate state or federal court), this being in addition to any other remedy to which such party is entitled at law or in equity. Each party hereto further agrees not to assert and waives (a) any defense in any action for specific
performance that a remedy at Law would be adequate and (b) any requirement under any Law to post security or provide indemnity as a prerequisite to obtaining equitable relief. 

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

10.3    Amendment and Waiver. Any provision of this Agreement may be amended and the observance thereof may be
waived (either generally or in a particular instance and either retroactively or prospectively) only with the written consent of the Company and the holders of at least 75% of the Stockholder Shares. No failure or delay of any party hereto to
exercise any right or remedy given to such party under this Agreement or otherwise available to such party or to insist upon strict compliance by any other party with its obligations hereunder and no single or partial exercise of any such right or
power shall constitute a waiver of any party hereto’s right to demand exact compliance with the terms hereof. Any written waiver shall be limited to those items specifically waived therein and shall not be deemed to waive any future breaches or
violations or other non-specified breaches or violations unless, and to the extent, expressly set forth therein. 

10.4    Notices. All notices and other communications made pursuant to or under this Agreement shall be in
writing and shall be deemed to have been duly given or made (a) when personally delivered, (b) as of the date transmitted when transmitted by electronic mail, (c) one Business Day after deposit with a nationally recognized overnight
courier service, or (d) three Business Days after the mailing if sent by registered or certified mail, postage prepaid, return receipt requested. All notices and other communications under this Agreement shall be delivered to the addresses set
forth on the signature page hereto, or such other address as such party may have given to the other parties by notice pursuant to this Section 10.4. 

  
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 10.5    Severability. If any term or provision of this
Agreement is held invalid, illegal or unenforceable in any respect under any applicable Law, the validity, legality and enforceability of all other terms and provisions of this Agreement will not in any way be affected or impaired. Upon such
determination that any term or other provision is invalid, illegal or incapable of being enforced, the Parties shall negotiate in good faith to modify this Agreement so as to effect the original intent of the Parties as closely as possible in a
mutually acceptable manner in order that the transactions contemplated by this Agreement be consummated as originally contemplated to the greatest extent possible. 

10.6    Governing Law. This Agreement shall be construed and enforced in accordance with, and all questions
concerning the construction, validity, interpretation, inducement to enter and/or performance of this Agreement (whether related to breach of contract, tortious conduct or otherwise and whether now existing or hereafter arising) shall be governed
by, the internal laws of the State of Delaware, without giving effect to any law that would cause the laws of any jurisdiction other than the State of Delaware to be applied. 

10.7    Entire Agreement. This Agreement, together with the exhibits hereto, constitutes the full and entire
understanding and agreement between the parties with regard to the subject matter hereof and thereof. 

10.8    Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed
to be an original but all of which shall constitute one and the same agreement. This Agreement may be executed by facsimile or electronic (.pdf) signature and a facsimile or electronic (.pdf) signature shall constitute an original for all purposes.

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 IN WITNESS WHEREOF, the
parties hereto have executed this VOTING AND STANDSTILL AGREEMENT as of the date first written above. 
  

							
	COMPANY:	 		 		 	STOCKHOLDER:
				
	MOHAWK GROUP HOLDINGS, INC.	 		 		 	9830 MACARTHUR LLC
				
		 		 		 	Manager
	 /s/ Fabrice Hamaide
	 		 		 	NIJOR CHILDREN’S IRREVOCABLE TRUST UA,
	Fabrice Hamaide	 		 		 	DATED JANUARY 2, 2017
	Chief Financial Officer	 		 		 	
		 		 		 	 /s/ Jelena Puzovic

	 Address: 37 East 18th Street, 7th Floor

                New York, NY 10003
	 		 		 	JELENA PUZOVIC, TRUSTEE OF THE NIJOR CHILDREN’S IRREVOCABLE TRUST UA,
DATED JANUARY 2, 2017, AS MANAGER OF 9830 MACARTHUR, LLC
				
		 		 		 	Address:EX-10.4

 Exhibit 10.4 

ALL INDEBTEDNESS EVIDENCED BY THIS PROMISSORY NOTE IS SUBORDINATE TO OTHER INDEBTEDNESS PURSUANT TO, AND TO THE EXTENT PROVIDED IN, AND IS OTHERWISE
SUBJECT TO THE TERMS OF, THE SUBORDINATION AGREEMENT, DATED AS OF DECEMBER 1, 2020 (THE “SUBORDINATION AGREEMENT”), AS THE SAME MAY BE AMENDED, RESTATED, SUPPLEMENTED OR OTHERWISE MODIFIED FROM TIME TO TIME, BY AND AMONG THE LENDERS (AS
DEFINED BELOW), THE BORROWER (AS DEFINED BELOW) AND MIDCAP FUNDING IV TRUST, A DELAWARE STATUTORY TRUST (TOGETHER WITH ITS PERMITTED SUCCESSORS AND ASSIGNS), AS ADMINISTRATIVE AGENT FOR THE SENIOR LENDERS (AS DEFINED IN THE SUBORDINATION AGREEMENT)
FROM TIME TO TIME PARTY TO THE SENIOR LOAN AGREEMENT (AS DEFINED IN THE SUBORDINATION AGREEMENT), AND THE LENDERS, BY THEIR ACCEPTANCE HEREOF, ACKNOWLEDGES AND AGREES TO BE BOUND BY THE PROVISIONS OF THE SUBORDINATION AGREEMENT. 

NON-NEGOTIABLE PROMISSORY NOTE 

 

			
	$15,799,449	  	New York, NY
	 	  	December 1, 2020

 1.    Principal. For value received, as herein provided, Mohawk Group Holdings,
Inc., a Delaware corporation (“Borrower”), promises to pay to 9830 Macarthur LLC, a Wyoming limited liability company (“MacArthur”), on behalf of the Lenders (as defined below), the principal amount set forth above
(the “Original Principal Amount”), together with interest thereon from the date of this Promissory Note (“Loan”). Interest shall accrue on any portion of the Loan not repaid within 180 days of the date of this
Promissory Note at a per annum rate equal to 3.0%, compounded annually, and shall be charged for the actual number of days elapsed, and such interest shall be paid on the Termination Date (as defined below); provided that, if Borrower is late in its
payment in respect of any SKU of Specified Inventory, then the per annum rate of 3.0% will increase to 10% solely on the unpaid amount of such SKU and not on the entire outstanding balance of this Promissory Note. Interest shall not accrue on any
portion of the Loan repaid within 180 days of the date of this Promissory Note. This Promissory Note is being provided to MacArthur, on behalf of the Lenders, pursuant to that certain Asset Purchase Agreement, dated as of even date herewith, by and
among Borrower, MacArthur, Reliance Equities Group, LLC, a Wyoming limited liability company (“Reliance Equities Group”), ZN Direct LLC, a Wyoming limited liability company (“ZN Direct” and together with MacArthur
and Reliance Equities Group, collectively, the “Lenders”), and Jelena Puzovic (the “Asset Purchase Agreement”). Capitalized terms used in this Promissory Note without definition shall have the respective meanings
set forth in the Asset Purchase Agreement. 
 2.    Maturity; Payment of the Loan. If any amount remains
outstanding hereunder on December 31, 2022 (the “Termination Date”), then such outstanding amount shall be deemed to be no longer outstanding hereunder and shall be added to the Phase 2 Earn Out Amount and have the same
repayment rights and obligations as the Phase 2 Earn Out Amount; provided that, prior to the Termination Date, within 30 days of the time at which the remaining amount owed in respect of a particular SKU of Specified Inventory under this Promissory
Note is 5% or less than the portion of the Original Principal Amount attributable to such SKU of Specified Inventory at Closing (as noted in Exhibit A attached hereto), then Borrower shall pay to MacArthur the

  
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remaining balance of the then outstanding principal value under this Promissory Note attributable to such SKU of Specified Inventory, which payment shall reduce on a dollar-for-dollar basis the then outstanding principal amount under this Promissory note in respect of such SKU of Specified Inventory. Payments shall be made in lawful money
of the United States of America. Such payment shall be made at the principal office of MacArthur, or at such other place as MacArthur may from time to time designate in writing to Borrower. Payment shall be credited first to accrued interest due and
payable and the remainder applied to principal. If any payment of principal or interest on this Note is due on a day which is not a Business Day, such payment shall be due on the next succeeding Business Day, and such extension of time shall be
taken into account in calculating the amount of interest payable under this Promissory Note. “Business Day” means any day other than a Saturday, Sunday or legal holiday in the State of New York. 

3.    Repayment of Principal. Each Monthly Inventory Repayment Amount paid by Borrower pursuant to
Section 2.8(b) of the Asset Purchase Agreement shall be deemed to be a pro rata repayment of any outstanding principal amount and any accrued interest thereon owing to MacArthur hereunder. 

4.    Prepayment. This Promissory Note may be prepaid in full or in part at any time without penalty or premium.

 5.    Subordination. MacArthur agrees that it shall promptly take all actions requested by Borrower to effect
a subordination of this Promissory Note to any existing or future indebtedness incurred by Borrower with any bank, financial institution or other commercial lender or lessor, whether or not secured, including without limitation, entering into any
agreement reasonably requested by such third party, in form reasonably acceptable to MacArthur and its counsel, to implement the foregoing within any reasonable timeframe so requested. 

6.    No Waiver By Lender. No waiver of any default shall be implied from any failure of MacArthur to take any
action or any delay by MacArthur in taking action with respect to any such default or from any previous waiver of any similar or unrelated default. A waiver of any term of this Promissory Note must be made in writing and shall be limited to the
express written terms of such waiver. This Promissory Note shall inure to the benefit of, and be binding upon, Borrower, MacArthur and their respective successors. 

7.    Certain Waivers. Borrower and all endorsers jointly and severally waive diligence, grace, demand, presentment
for payment, exhibition of this Promissory Note, protest, notice of protest, notice of dishonor, notice of demand, notice of nonpayment, notice of default or delinquency, notice of acceleration, notice of costs or expenses and interest thereon, and
notice of any late charges and any and all exemption rights against the indebtedness evidenced by this Promissory Note, and agree to any and all extensions or renewals from time to time without notice and to any partial payments of this Promissory
Note made before or after maturity, and that no such extension, renewal or partial payment shall release any one or all of them from the obligation of payment of this Promissory Note or any installment of this Promissory Note, and consent to offsets
of any sums owed to any one or all of them by MacArthur at any time. 
 8.    Loss, Theft, Destruction or Mutilation
of Promissory Note. In the event of the loss, 

  
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theft or destruction of this Promissory Note, upon Borrower’s receipt of a reasonably satisfactory indemnification agreement executed in favor of Borrower by MacArthur, Borrower shall
execute and deliver to MacArthur, a new promissory note in form and content identical to this Promissory Note in lieu of the lost, stolen, destroyed or mutilated Promissory Note. 

9.    Time. Time is of the essence with respect to each and every provision hereof. 

10.    Choice of Law; Venue. 

a.    This Promissory Note shall be construed and enforced in accordance with, and all questions concerning the
construction, validity, interpretation, inducement to enter and/or performance of this Promissory Note (whether related to breach of contract, tortious conduct or otherwise and whether now existing or hereafter arising) shall be governed by, the
internal Laws of the State of Delaware, without giving effect to any Law that would cause the Laws of any jurisdiction other than the State of Delaware to be applied. 

b.    Each party agrees that any Proceeding arising out of or relating to this Promissory Note or any transaction
contemplated hereby shall be brought exclusively in any state or federal court located in New York County, State of New York and each of the parties hereby submits to the exclusive jurisdiction of such courts for itself and with respect to its
property, generally and unconditionally, for the purpose of any such Proceeding. A final judgment in any such Proceeding may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party agrees not to
commence any Proceeding arising out of or relating to this Promissory Note or the transactions contemplated hereby except in the courts described above (other than actions in any court of competent jurisdiction to enforce any judgment, decree or
award rendered by any such court in New York as described above), irrevocably and unconditionally waives any objection to the laying of venue of any Proceeding arising out of or relating to this Promissory Note or the transactions contemplated
hereby in any such court, and hereby irrevocably and unconditionally waives and agrees not to plead or claim in any such court that any such Proceeding brought in any such court has been brought in an inconvenient forum or does not have jurisdiction
over any party. Each party agrees that service of any process, summons, notice or document by U.S. registered mail to such party’s respective address set forth herein shall be effective service of process for any such Proceeding. 

c.    EACH PARTY HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON
CONTRACT, TORT, STATUTE OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS PROMISSORY NOTE, THE TRANSACTIONS CONTEMPLATED HEREBY OR THE ACTIONS OF SUCH PARTY IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE AND ENFORCEMENT HEREOF. EACH PARTY FURTHER
WAIVES ANY RIGHT TO SEEK TO CONSOLIDATE ANY PROCEEDING IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER PROCEEDING IN WHICH A JURY TRIAL CANNOT OR HAS NOT BEEN WAIVED. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (I) NO REPRESENTATIVE, AGENT
OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED OR WARRANTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO 

  
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ENFORCE THE FOREGOING WAIVER, (II) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (III) EACH PARTY MAKES THIS WAIVER VOLUNTARILY AND (IV) EACH PARTY HAS
BEEN INDUCED TO ENTER INTO THIS PROMISSORY NOTE BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 10(C). 

d.    The prevailing party shall be entitled to recover from the non-prevailing
party any costs or expenses incurred by such party to enforce any provision of this Promissory Note, including without limitation, attorneys’ fees, whether in connection with litigation or otherwise. 

11.    Entire Agreement. This Promissory Note and the Asset Purchase Agreement contain the entire agreement between
the parties relating to the subject matter contained herein. This Promissory Note supersedes any prior oral or written agreement between the parties relating to the subject matter contained herein. No term of this Promissory Note may be waived,
modified or amended except by an instrument in writing signed by MacArthur and Borrower. Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given. 

12.    Successors and Assigns. This Promissory Note may not be assigned or transferred (i) by Borrower to any
person at any time without the written consent of MacArthur, or (ii) by MacArthur to any person at any time without the written consent of Borrower, except to an Affiliate or shareholder of MacArthur. For purposes of this Promissory Note, an
“Affiliate” means any individual, entity or trust who or which, directly or indirectly, controls, is controlled by, or is under common control with MacArthur. This Promissory Note shall inure to the benefit of and be binding upon
the parties hereto and their permitted assigns. 
 13.    Headings. The headings in this Promissory Note are for
reference only and shall not affect the interpretation of this this Promissory Note. 
 14.    Counterparts. This
Promissory Note may be executed in counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same agreement. A signed copy of this Promissory Note delivered by facsimile, e-mail or other means of electronic transmission shall be deemed to have the same legal effect as delivery of an original signed copy of this Promissory Note. 

15.    Severability. If any term or provision of this Promissory Note is invalid, illegal or unenforceable in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other term or provision of this Promissory Note or invalidate or render unenforceable such term or provision in any other jurisdiction. Upon such determination that
any term or other provision is invalid, illegal or unenforceable, the parties hereto shall negotiate in good faith to modify this Promissory Note so as to effect the original intent of the parties as closely as possible in a mutually acceptable
manner in order that the transactions contemplated hereby be consummated as originally contemplated to the greatest extent possible. 

[Signature Page Follows] 

  
 4 

 IN WITNESS WHEREOF, the undersigned have executed this Promissory Note as of the date first above written.

  

							
	Mohawk Group Holdings, Inc.,	 		 		 	9830 Macarthur LLC, on behalf of the
	a Delaware corporation, as Borrower	 		 		 	Lenders
				
	By: /s/ Fabrice
Hamaide                                        
	 		 		 	By: /s/ Jelena
Puzovic                                        

	Name: Fabrice Hamaide	 		 		 	Name: Jelena Puzovic, Trustee of the Nijor
	Title:   Chief Financial Officer	 		 		 	Children’s Irrevocable Trust UA, dated
		 		 		 	January 2, 2017, as Manager of 9830
		 		 		 	Macarthur, LLC
		 		 		 	Title: Manager

  
 (Signature Page to
Promissory Note)

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