Document:

Exhibit 10.3

 

VOTING
AGREEMENT

 

This
Voting Agreement (“Voting Agreement”) is made as of [        ], by and among My Size, Inc., a company organized
under the laws of the State of Delaware (the “Company”), and the parties identified on the signature page hereto (each
a “Stockholder,” and collectively, the “Stockholders”).

 

WHEREAS,
pursuant to that certain Share Purchase Agreement, dated as of October 6, 2022 (the “Purchase Agreement”), by and
among the Company and, inter alia, the Stockholders, the Stockholders have agreed to sell all of their shares in Naiz Bespoke Technologies
S.L. (“NBT”) to the Company in exchange for cash and shares of common stock, par value $0.001 per share, of the Company (the
“Company Common Stock”), and the Company has agreed to purchase the NBT Shares from the Stockholders by paying cash
and issuing shares of the Company Common Stock to the Stockholders, subject to the terms and conditions set forth in the Purchase Agreement;

 

WHEREAS,
the number of shares of the Company Common Stock to be issued to the Stockholders pursuant to the Purchase Agreement are set forth on
Exhibit A attached hereto (the “Shares”);

 

WHEREAS,
the closing of the transactions contemplated in the Purchase Agreement, including, without limitation, the issuance of the Shares by
the Company to the Stockholders, is expressly conditioned on the entering into of this Voting Agreement prior to such closing; and

 

WHEREAS,
the Stockholders desire to enter into this Voting Agreement in order to induce the Company to close the transactions contemplated in
the Purchase Agreement, including, without limitation, the issuance of the Shares to the Stockholders.

 

NOW,
THEREFORE, in consideration of the foregoing premises and certain other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the parties hereby agree as follows:

 

1. Definitions.
All initial capitalized terms used but not otherwise defined herein shall have the meanings set forth in the Purchase Agreement.

 

2. Shares
Subject to Agreement. The term “Voting Shares” as used in this Voting Agreement shall refer,
individually and collectively, to (i) the Shares, and (ii) any other shares of the Company’s capital stock owned (whether
beneficially or as of record) by the Stockholders on or after the date hereof (the “Additional Shares”). The
Stockholders hereby agree to hold any Voting Shares controlled or owned by them (whether beneficially or as of record), subject to
the provisions of this Voting Agreement.

 

3. Manner
of Vote. Any vote of the Voting Shares held by the Stockholders, whether at any meeting of the stockholders of the Company (including
any adjournment(s), postponement(s) or continuation(s) thereof) or by written consent in lieu of a meeting of the stockholders of the
Company, shall be exercised exclusively by such person (the “Proxy”) designated from time to time by the Company’s
Board of Directors (the “Board”) by written notice to the Stockholders; provided, that, if the voting power held by
the Proxy, when taking into account the proxies granted by the Stockholders by this Section 3 and Section 4 of this Agreement and the
Company Common Stock beneficially owned by the Proxy, represents 20% or more of the voting power of the Company’s stockholders
that will vote on an item, then the Proxy shall vote such number of Voting Shares in excess of 19.9% of the voting power of the existing
stockholders of the Company on such item in the same proportion as shares of Company Common Stock are voted by the Company’s other
stockholders. The initial Proxy shall be Or Kles. Any vote of the Voting Shares by any person other than the then Proxy shall be invalid,
and shall not count as a vote of Voting Shares for any purpose whatsoever.

 

    	 

     

    

 

4. Irrevocable
Proxy Coupled with an Interest.

 

(a) In
order to effect the foregoing voting arrangement, each Stockholder hereby irrevocably designates and appoints the then current Proxy
as such Stockholder’s sole and exclusive attorney-in-fact and proxy, with full power of substitution and re-substitution, for and
in such Stockholder’s name, to vote and exercise all voting rights (to the fullest extent such Stockholder is entitled to do so)
with respect to the Voting Shares in the manner and to the effect determined by the Proxy, whether at any meeting of the stockholders
of the Company (including any adjournment(s), postponement(s) or continuation(s) thereof) and in any other circumstances upon which the
vote, consent (including a written consent in lieu of a meeting), or other approval of the stockholders of the Company is sought. The
irrevocable proxy and power of attorney granted by each Stockholder pursuant to this Section 4 shall terminate on the earliest to occur
of (i) such time that such Stockholder no longer owns the Voting Shares, (ii) the sale of all or substantially all of the assets of the
Company or the consolidation or merger of the Company with or into any other business entity pursuant to which stockholders of the Company
prior to such consolidation or merger hold less than 50% of the voting equity of the surviving or resulting entity, (iii) the liquidation,
dissolution or winding up of the business operations of the Company, and (iv) the filing or consent to filing of any bankruptcy, insolvency
or reorganization case or proceeding involving the Company or otherwise seeking any relief under any laws relating to relief from debts
or protection of debtors generally (the “Expiration Date”).

 

(b)
The irrevocable proxy and power of attorney granted by each Stockholder pursuant to this Section 4 is: (i) intended to be and shall be
irrevocable to the full extent permitted by the Delaware General Corporation Law, (ii) coupled with an interest sufficient in law to
support an irrevocable power, and (iii) granted in consideration of the Company issuing the Shares to the Stockholders, entering into
this Voting Agreement and incurring certain related fees and expenses.

 

5. Representations
and Warranties of the Stockholders. Each of the Stockholders represents, warrants and covenants to the Company as follows:

 

(a) Upon
the issuance of the Shares to the Stockholder under the Purchase Agreement, the Stockholder shall be the sole legal and beneficial owner
of such Shares which securities represent the only securities of the Company legally or beneficially owned by the Stockholder or that
the Stockholder has voting power over. Except with respect to the Purchase Agreement, the Stockholder is not a party to any contract
or agreement and owns no warrants, options or rights to purchase, subscribe for or otherwise acquire any securities of the Company. No
person not a signatory to this Voting Agreement has a beneficial interest in or a right to acquire or vote any of the Voting Shares.
Upon issuance, the Shares and any Additional Shares will be, free and clear of any lien, charge, claim, security interest, proxy, power
of attorney, encumbrance, voting trust or agreement, understanding or arrangement of whatever nature that would adversely affect, or
be inconsistent or interfere with, the Stockholder’s ability to vote the Voting Shares in accordance with Section 3 above or the
Stockholder’s ability to grant and the Proxy’s ability to exercise the irrevocable proxy and power of attorney pursuant to
Section 4 above. The Stockholder has not granted, and prior to the Expiration Date will not grant, any other proxy or voting rights in
respect of the Voting Shares to any other person. 

 

    	-2-

     

    

 

(b)
The Stockholder has all requisite power, capacity and authority to enter into and perform this Voting Agreement. If this Voting Agreement
is being executed in a representative or fiduciary capacity, the person signing this Voting Agreement has full power, capacity and authority
to enter into and perform this Voting Agreement. This Voting Agreement has been duly executed and delivered by the Stockholder and constitutes
a valid and binding obligation of the Stockholder, enforceable against the Stockholder in accordance with its terms, subject to applicable
bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and similar laws affecting creditors’ rights and remedies
generally, and to general principles of equity.

 

6. Certain
Covenants. Except as provided in this Agreement, each Stockholder shall not, during the term of this Agreement, without the prior
written consent of the Company, directly or indirectly: (i) grant any proxies or powers of attorney or enter into any voting trust or
other agreement, understanding or arrangement of whatever nature with respect to the Voting Shares held by it that would adversely affect,
or be inconsistent or interfere with its ability to vote the Voting Shares in accordance with Section 3 above or its ability to grant
and the Proxy’s ability to exercise the irrevocable proxy and power of attorney pursuant to Section 4 above; (ii) pledge, encumber
or create a lien on, whether voluntarily or involuntarily or by operation of law, any Voting Shares; or (iii) take any other action that
would adversely affect, or be inconsistent or interfere with the provsions of Section 3 or Section 4 above.

 

7.
Effective Date; Term. This Voting Agreement shall remain in effect until the Expiration Date. Notwithstanding anything herein to
the contrary, (i) this Voting Agreement shall not be effective or binding on the Stockholders until the closing of the transactions contemplated
in the Purchase Agreement, whereupon all the terms and provisions hereof shall automatically become binding, and (ii) this Voting Agreement
shall terminate immediately upon termination of the Purchase Agreement, for any reason, prior to closing thereunder.

 

8.
Successors in Interest. The provisions of this Voting Agreement shall be binding upon the successors in interest to any
of the Voting Shares. The Stockholders shall not transfer (whether voluntary or involuntary) any Voting Shares, or cause the Company
or its transfer agent to record the transfer of the record ownership of any Voting Shares on its books (or issuing a new certificate
representing any of the Voting Shares), unless and until the person to whom such Voting Shares are to be transferred shall have
executed a written agreement pursuant to which such person becomes a party to this Voting Agreement and agrees to be bound by all
the provisions hereof as if such person were an original signatory hereto.

 

    	-3-

     

    

 

9.
Legend. In addition, to any other legend, each certificate representing any of the Voting Shares shall be marked with a legend
reading as follows:

 

THE
SHARES EVIDENCED HEREBY ARE SUBJECT TO A VOTING AGREEMENT (A COPY OF WHICH MAY BE OBTAINED FROM THE ISSUER) AND BY ACCEPTING ANY INTEREST
IN SUCH SHARES THE PERSON HOLDING SUCH INTEREST SHALL BE DEEMED TO AGREE TO AND SHALL BECOME BOUND BY ALL THE PROVISIONS OF SAID VOTING
AGREEMENT.

 

At
any time after the termination of this Voting Agreement in accordance with Section 7, any holder of a stock certificate legended
pursuant to this Section 9 may surrender such certificate to the Company for removal of the legend.

 

10. Specific
Performance. The parties hereto agree and the Stockholders expressly acknowledge that the Company may be irreparably damaged if for
any reason the Stockholders fail to perform any of their obligations under this Voting Agreement, and that the Company may not have any
adequate remedy at law for money damages in such event. Accordingly the Stockholders agree that in the case of the failure of the Stockholders
to perform the Company shall be entitled to specific performance and injunctive and other equitable relief to enforce the performance
of this Voting Agreement by the Stockholders, and further agree that any such specific performance and injunctive and/or other equitable
relief, in addition to remedies at law or damages, is the appropriate remedy for any such failure to perform, and further agree that
the Stockholders will not seek, and agree to waive any requirement for, the securing or posting of a bond in connection with the Company’s
seeking or obtaining such equitable relief. This provision is without prejudice to any other rights that the Company may have against
the Stockholders for any failure to perform its obligations under this Voting Agreement.

 

11.
Remedies. All remedies, either under this Voting Agreement or by law or otherwise afforded to any party, shall be cumulative
and not alternative.

 

12. Miscellaneous.

 

12.1.
Governing Law. All questions concerning the construction, validity, enforcement and interpretation of this Voting
Agreement shall be governed by the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of
law provision or rule (whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of
any jurisdictions other than the State of Delaware. Each party hereby irrevocably submits to the exclusive jurisdiction of the state
courts of the State of Delaware, for the adjudication of any dispute hereunder, and hereby irrevocably waives, and agrees not to
assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit,
action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Voting Agreement and
agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall
be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE TO, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR
ARISING OUT OF THIS VOTING AGREEMENT. If any party shall commence an action or proceeding to enforce any provisions of the Voting
Agreement, then the prevailing party in such action or proceeding shall be reimbursed by the non-prevailing party for its reasonable
attorneys’ fees and other costs and expenses incurred with the investigation, preparation and prosecution of such action or
proceeding.

 

    	-4-

     

    

 

12.2.
Successors and Assigns. Except as otherwise provided herein, the provisions hereof shall inure to the benefit of, and be binding
upon, the successors, assigns, heirs, executors, and administrators of the parties hereto. Nothing in this Voting Agreement, express
or implied, is intended to confer upon any party other than the parties hereto or their respective permitted successors and assigns any
rights, remedies, obligations or liabilities under or by reason of this Voting Agreement, except as expressly provided by this Voting
Agreement.

 

12.3.
Entire Agreement. This Voting Agreement, together with any exhibits and schedules thereto, contain the entire understanding
of the parties with respect to the subject matter hereof and thereof and supersede all prior agreements and understandings, oral or written,
with respect to such matters, which the parties acknowledge have been merged into such documents, exhibits and schedules.

 

12.4.
Notices, Etc. Any and all notices or other communications or deliveries required or permitted to be provided hereunder
shall be in writing and shall be deemed given and effective on the earliest of: (a) the time of transmission, if such notice or
communication is delivered via facsimile at the facsimile number or email attachment at the email address as set forth on the
signature pages attached hereto at or prior to 5:30 p.m. (New York City time) on a business day, (b) the next business day after the
time of transmission, if such notice or communication is delivered via facsimile at the facsimile number or email attachment at the
email address as set forth on the signature pages attached hereto on a day that is not a business day or later than 5:30 p.m. (New
York City time) on any business day, (c) the second (2nd) business day following the date of mailing, if sent by U.S. nationally
recognized overnight courier service or (d) upon actual receipt by the party to whom such notice is required to be given. The
address for such notices and communications shall be as set forth on the signature pages attached hereto.

 

12.5.
Delays or Omissions. No delay or omission to exercise any right, power, or remedy accruing to any party upon any breach or
default of another party under this Voting Agreement shall impair any such right, power, or remedy of such party, nor shall it be construed
to be a waiver of any such breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring;
nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter occurring.
Any waiver, permit, consent, or approval of any kind or character on the part of any party of any breach or default under this Voting
Agreement, or any waiver on the part of any party of any provisions or conditions of this Voting Agreement, must be in writing and shall
be effective only to the extent specifically set forth in such writing or as provided in this Voting Agreement. All remedies, either
under this Voting Agreement or by law or otherwise afforded to any party, shall be cumulative and not alternative.

 

    	-5-

     

    

 

12.6.
Counterparts. This Voting Agreement may be executed in two or more counterparts, all of which when taken together shall be
considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to each
other party, it being understood that the parties need not sign the same counterpart. In the event that any signature is delivered by
facsimile transmission or by e-mail delivery of a “.pdf” format data file, such signature shall create a valid and binding
obligation of the party executing (or on whose behalf such signature is executed) with the same force and effect as if such facsimile
or “.pdf” signature page were an original thereof.

 

12.7.
Severability. If any term, provision, covenant or restriction of this Voting Agreement is held by a court of competent jurisdiction
to be invalid, illegal, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions set forth herein shall
remain in full force and effect and shall in no way be affected, impaired or invalidated, and the parties hereto shall use their commercially
reasonable efforts to find and employ an alternative means to achieve the same or substantially the same result as that contemplated
by such term, provision, covenant or restriction. It is hereby stipulated and declared to be the intention of the parties that they would
have executed the remaining terms, provisions, covenants and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.

 

12.8.
Headings. The headings herein are for convenience only, do not constitute a part of this Agreement and shall not be deemed to limit
or affect any of the provisions hereof.

 

12.9.
Amendment and Waiver. Any provision of this Voting Agreement may be amended or waived (either generally or in a particular instance
and either retroactively or prospectively) only by an agreement in writing of the party against whom enforcement is sought.

 

12.10.
Stock Splits, Stock Dividends, etc.. In the event of any stock split, stock dividend, merger, reorganization, recapitalization or
other change in the capital structure of the Company or the acquisition of additional shares of the Company Common Stock or other voting
securities of the Company by the Stockholders after the date of this Voting Agreement, the number of Voting Shares subject to the terms
of this Voting Agreement shall be adjusted automatically, as appropriate, and all such Voting Shares shall be automatically subject to
this Voting Agreement and endorsed with the legend set forth in Section 9.

 

12.11. Representation
by Counsel. Each Stockholder acknowledges that it has been represented by counsel or had the full opportunity to represented by counsel
in, the drafting of the Voting Agreement. If a Stockholder has not taken the opportunity available to it to be represented by counsel
in this transaction, it has done so with full awareness of the risks of not engaging counsel, has had the opportunity to confer with
counsel as to what such risks are, and has knowingly assumed any and all such risks. Any applicable rule of construction to the effect
that ambiguities are to be resolved against the drafting party will not be applied in connection with the construction or interpretation
of the Voting Agreement.

 

[Signature
Page Follows]

 

    	-6-

     

    

 

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

 

	 	My Size, Inc.
	 	 	 
	 	By:	 
	 	Name:	Ronen
    Luzon
	 	Title:	Chief
Executive Officer
	 	 	 
	 	Address for Notice:
	 	 	 
	 	Fax:	 
	 	E-mail:	 
	 	 	 
	 	Whitehole, S.L.
	 	 	 
	 	By:  	 
	 	Name:
    	 
	 	Title:
    	 
	 	 	 
	 	Address for Notice:
	 	 	 
	 	Fax:	 
	 	E-mail:	 
	 	 	 
	 	Twinbel, S.L.
	 	 	 
	 	By:	 
	 	Name:
    	 
	 	Title:
    	 

 

[Signature
Page to Voting Agreement]

 

    	 

     

    

 

	 	Address for Notice:
	 	 	 
	 	Fax:	 
	 	E-mail:	 
	 	 
	 	EGI Acceleration, S.L.
	 	 	 
	 	By:
    	                 
	 	Name:
    	 
	 	Title:	 
	 	 	 
	 	Address for Notice:
	 	 	 
	 	Fax:	 
	 	E-mail:	 

 

EXHIBIT
A

 

Shares

 

	Name of Stockholder	 	Number of Shares
	 	 	 
	Whitehole,
S.L. 	 	2,365,800
	Twinbel,
S.L.	 	427,200
	EGI Acceleration, S.L.	 	201,000LOAN AGREEMENT

 

1.Promise to Pay. The Business will pay to Amazon Capital Services, Inc. ("we", "us" or "our") the principal, interest, late interest, and any other charges and expenses due to us under this Loan Agreement, including charges and expenses in exercising any of our remedies, which altogether constitutes the "Loan". The Business must make periodic payments of interest and principal according to the schedule set forth in this Loan Agreement. Any amounts due under this Loan Agreement that remain unpaid on the final scheduled payment due date will be due in full on that date. We may in our sole discretion request a Guarantor, who will be individually responsible for obligations under this Loan Agreement as further defined in the section labeled Personal Guaranty below. 

 

2.Interest and Late Payment Charges. The principal balance of the Loan will accrue interest daily at the annual interest rate shown in the “Application Information” section of this Loan Agreement (“Annual Interest Rate”) from the date we approve the Loan and it appears in Seller Central (the "Origination Date") until the Loan is paid in full. Interest payable on the Loan will be computed by (i) dividing the Annual Interest Rate by twelve to obtain the monthly interest rate (the "Monthly Interest Rate"), (ii) dividing the Monthly Interest Rate by the actual number of days elapsed in the statement period during which interest accrues and (iii) multiplying (ii) above by the principal balance of the Loan outstanding at the beginning of the statement period. Interest on the Loan will accrue on a daily basis and will be payable in arrears (x) on each payment date, (y) upon any prepayment of the Loan and (c) at maturity of the Loan. 

 

If any payment is not made on time, interest will accrue daily on all past due amounts under the Loan at an annual interest rate (the "Late Interest Rate") equal to the lesser of the Annual Interest Rate plus 2.0% or the maximum amount permitted by applicable law until those amounts are paid in full.

 

3.Making Payments. The Business authorizes us to fund the Loan into the Business's Amazon seller account (the "Seller Account") administered by Amazon Services LLC or any other subsidiary of Amazon.com, Inc. ("Affiliate"). The Business directs Amazon Services LLC and its Affiliates to withhold disbursements from the Business's Seller Account sufficient to cover scheduled payments as well as any other amounts due under this Loan Agreement and remit those amounts to us whether or not such action would result in there being insufficient funds to make the next scheduled payment under the Loan Agreement or to meet any other Business obligations. The Business further authorizes Amazon Services LLC and its Affiliates to withhold disbursements from any other Amazon account affiliated with the Business in order to cover scheduled payments and any other amounts due under this Loan Agreement.Unless we specify otherwise, scheduled loan payments will be automatically deducted from the first Seller Account disbursement after the date payment is due. If we approve the Business to make more frequent scheduled payments in amounts less than the Monthly Payment, the Business agrees that this may result in an increase to the total interest due over the life of the Loan, and an increase in the total amount payable to us. 

 

For Loans with interest only payments for the first three payment periods after the Origination Date, payments are due monthly in an amount equal to all the accrued interest on the principal balance. Thereafter, the monthly payments are equal to the "Monthly Payment (Principal and Interest)" shown on the Loan Agreement. For Loans that do not qualify for the interest only payments described in the preceding two sentences, payments are due monthly in an amount equal to the "Monthly Payment" shown in the Application Information section of this Loan Agreement. Payments are due on the same date of each month as the Origination Date (or, if after the 28th of the month, the first day of the next month), beginning the month after the month of the Origination Date.

 

Loan proceeds will first be applied to pay off any negative seller balance the Business may have at the time of disbursement. All payments will be applied in the following order: (i) scheduled payments and other amounts due that have not been paid in full one month after they became due (each a "Past Due Payment"), first to accrued past due interest and then to past due principal, starting with the Past Due Payment that has been outstanding the longest, (ii) currently due interest that has accrued at the Late Interest Rate, (iii) currently due interest that has accrued at the Annual Interest Rate and (iv) currently due principal. If the Business does not have pending disbursements in its Seller Account sufficient to make a scheduled payment or pay any other amounts due, the Business is responsible for paying the remaining amount due by the applicable due date. The Business may make payment by Automated Clearing House (ACH) through Seller Central or by check. Checks must: (x) be made out to Amazon Capital Services, Inc., (y) include the Loan number on the subject line and (z) be mailed to: Amazon Capital Services, Inc., 410 Terry Ave. North, Seattle, WA 98109-5210. When mailing, a tracking number must be obtained and provided, upon request.

 

4.Prepayment and Refinancing. There is no penalty for repaying the Loan early. Unless the Business repays the Loan in full, any payments in excess of the Monthly Payment and any other charges due will be applied to outstanding principal. If the Business refinances a Loan through Amazon, the proceeds of the refinancing Loan will first be applied to pay off any existing negative seller balance, followed by the outstanding principal balance, accrued interest and any other unpaid fees on all existing loans. The net proceeds of the refinancing Loan will be disbursed to the Business's Seller Account. If the Business terminates the Consent to Electronic Communications, the Business agrees that we may declare this Loan immediately due and payable and exercise all remedies available to us at law or equity or as described in this Loan Agreement, including withdrawing the remaining balance from the Business's Seller Account as funds are available until paid. 

 

5.Default. Subject to applicable law, the Business will be in default under this Loan Agreement if any of the following events occur: (i) we do not receive any payment under this Loan Agreement when due, (ii) the Business ceases offering products on Amazon.com, (iii) the Business violates any obligation under the Amazon Services Business Solutions Agreement or any applicable Program Policy, (iv) the Business's ordered product sales on Amazon.com as reported in the Business's Seller Account ("OPS") in any 30 day period are less than 50% of the Business's lowest OPS on Amazon.com in any of the 12 months prior to the date of this Loan Agreement, (v) the collective value of the Business's units stored in Amazon fulfillment centers in the US, based on the list price of those units on Amazon.com, ("FBA Inventory Value") at any time during the term of this Loan Agreement is less than 50% of the Business's lowest average monthly FBA Inventory Value in any of the 12 months prior to the date of this Loan Agreement, other than because of inventory sales in the ordinary course of business, (vi) the number of ASINs listed by the Business as for sale on Amazon.com at any time during the term of this Loan Agreement decreases by 50% or more from the number of ASINs listed as at the Origination Date, (vii) the Business breaches any obligation, representation or warranty under or in connection with this Loan Agreement, (viii) the Business or Guarantor becomes insolvent, enters into receivership, makes an assignment for the benefit of creditors, or declares bankruptcy, or similar proceedings are commenced by or against the Business, (ix) any information, signature or certification provided in connection with the application, this Loan Agreement or the Consent to Electronic Communications is false, fraudulent, misleading or inaccurate, (x) an event occurs that has a material adverse effect on the business, operations or financial condition of the Business or on our rights and remedies under the Loan Agreement including, but not limited to, any adverse changes regarding the business reported by any credit bureau, (xi) there is no login to the Business’s Seller Central account in any 30-day period, (xii) the Business undergoes a change of control or another entity or person acquires an aggregate of 10 percent or more of the ownership interests of the Business, (xiii) there occurs a sale of all or substantially all of the property or assets of the Business; or (xiv) any guaranty of the Business’ obligations under the Loan is deemed unenforceable or the Guarantor revokes the Personal Guaranty or challenges the enforceability of the Personal Guaranty. The Business understands and agrees that if its selling privileges on Amazon.com are suspended or terminated, the loss of those selling privileges does not give rise to and cannot be used as a basis for any defense to or excuse of the Business’s obligation to perform under this Loan Agreement. 

 

6.Remedies. If the Business is in default, subject to any right the Business may have under law, the Business agrees that we may in our sole discretion exercise any remedy available to us at law or equity, including but not limited to any or all of the following actions: (i) declare the unpaid balance of the Loan to be immediately due and payable, (ii) enforce our rights as a secured party by directing Amazon Services LLC or its Affiliates to reserve, hold, and pay to us an amount up to the unpaid balance of the Loan from the Business's Seller Account and any other Amazon account affiliated with the Business until the unpaid balance of the debt under this Loan Agreement is paid in full, (iii) enforce our rights as a secured party, by taking possession of inventory that the Business or parties affiliated with the business have stored in Amazon fulfillment centers and disposing of it, or (iv) offset any amounts that are payable by the Business to us against any payments we or any of our Affiliates may owe to the Business. If this Loan Agreement is referred to an attorney or third party collections agent to collect the amount owed by the Business or otherwise enforce the terms of this Loan Agreement, the Business agrees to pay all of our costs associated with such collection or enforcement action to the fullest extent not prohibited by applicable law, including without limitation our reasonable attorneys' fees, court and arbitration costs and any costs incurred in obtaining and executing upon a judgment. If we choose to take possession of and dispose of any Collateral that consists of inventory held in an Amazon fulfillment center, the Business agrees that we may credit the Business with the value of the Collateral as determined by us in good faith pursuant to a valuation formula that may take into account several factors (depending on the circumstances), such as the recent listed and sale prices of the inventory and the prices listed by the Business's competitors for sale of the same or similar inventory. 

 

 

7.Security. Except with respect to any Business licensed in the State of Vermont, in order to induce us to make the Loan to the Business, the Business grants to us, to secure the payment and performance of all of the obligations under this Loan Agreement (including any additional debt arising from the Business's failure to pay or perform under this Loan Agreement, and including all Loans made to the Business in the future), a continuing first lien security interest in all of the following property the Business now owns or may acquire in the future (the "Collateral"): (i) all inventory at any time stored for the Business or Business’s affiliated accounts in Amazon fulfillment centers, wherever found, (ii) any right, title or interest in the Business's Seller Account, as well as any other Amazon accounts affiliated with the Business, (iii) all Accounts, Chattel Paper, Deposit Accounts, Documents, Instruments, Investment Property, or General Intangibles, (iv) all Equipment, Goods, inventory and other tangible personal property located in the United States, (v) any books and records pertaining to the Collateral, and (vi) any insurance, proceeds or products of the foregoing. Until the balance of the debt under this Loan Agreement is paid in full, the Business will not be able to remove sellable inventory stored for the Business in Amazon fulfillment centers. The Business represents and warrants that it has and will maintain good, complete and marketable title to all Collateral, free and clear of any and all security interests, liens, or encumbrances of any kind that may be inconsistent with the Loan Agreement or our interests. Unless otherwise defined in this Loan Agreement, capitalized terms in this Section 7 are used as defined in the Uniform Commercial Code of Washington State. 

 

VERMONT NOTICE: For the avoidance of doubt, Section 7, and the grant of security interest set forth therein, and Section 8, do not apply to any Business licensed in the State of Vermont and the Loan constitutes an unsecured commercial loan for all intents and purposes under 8 V.S.A. § 2201. With respect to any Business licensed in the State of Vermont, the Loan is expressly subordinated to the prior payment of all senior indebtedness of the Business regardless of whether such senior indebtedness exists at the time of the Loan or arises thereafter.

 

8.Financing Statements; Attorney in Fact. The Business authorizes us to file and, as we may deem necessary or desirable, to sign the name of the Business or its authorized representative on any documents and take any other actions that we deem necessary or desirable to ensure that our security interest is perfected. The Business agrees to cooperate by signing documents or taking any other action we may request. Except in New Jersey, the Business appoints us as the Business’ attorney in fact to sign the name of the Business to documents, applications, filings and certificates of title and transfer documents that are reasonably necessary to evidence or protect our security interest. To the greatest extent not prohibited by law, the Business agrees to pay (and we may charge the Business's Seller Account for) all fees necessary to file any documents in connection with the Business's obligations under this Loan Agreement. Any financing statements may describe the Collateral as "All assets of the Debtor". 

 

9.Notice of Business's Default. If the Business or Guarantor becomes aware of the existence of any condition or event which with the lapse of time or failure to give notice would constitute an event of default under this Loan Agreement, it will immediately give us written notice describing the condition or event and any related action which it is taking or propose to take. 

 

10.Disputed Payments. The Business will not to send us partial payments marked "paid in full", "without recourse", or with similar language, but if the Business sends such a payment, we may accept it without losing any of our rights under this Loan Agreement. All written communications concerning disputed amounts, including but not limited to any check or other payment instrument indicating that the payment constitutes "payment in full" of the amount owed, must be marked for special handling and mailed or delivered to us at 410 Terry Ave. North, Seattle, WA 98109, Attn: Amazon Capital Services, Inc. and will be effective only if so delivered. 

 

11.Notices; Change of Address. The Business and the Guarantor agree that any notice we send to the Business will be received when the notice is delivered personally, when we mail it, postage paid, to the last address that we have for the Business in our records, or when the notice is delivered via email to the Primary Contact Email address provided in the Application Information. The Business and the Guarantor agree to notify us by email at amazon- lending@amazon.com(i) promptly and in any event within 30 days of any change in the Primary Contact Email address, postal address and telephone number, or change in the Business's principal place of business or state of residence, state of incorporation or legal name and (ii) promptly and in any event within 30 days of any additional secured credit that the Business obtains at any time during the term of this Loan Agreement. 

 

12.Interpretation; Severability. Paragraph headings are for convenience only and may not be used in the interpretation of this Loan Agreement. If applicable law is finally interpreted so that charges collected or to be collected in connection with this Loan Agreement exceed the permitted limits, then (i) any such charges will be reduced to the permitted amounts and (ii) any amounts already collected that exceed the permitted amounts will be credited to the Business by, at our option, applying the credit to any amounts due hereunder or making a direct payment to the Business. If any provision in this Loan Agreement is invalid under applicable law, the remainder of the provisions in this Loan Agreement will remain in effect. The Business agrees that for purposes of compliance with law under this Loan Agreement, the Business's principal place of business or state of residence is the business address provided in the Application Information. 

 

13.Assignment. We may sell, assign or transfer any or all of our rights or obligations under this Loan Agreement (including without limitation, any or all of the Collateral) and any or all of our rights and remedies under this Loan Agreement without prior notice to the Business. The Business may not sell, assign or transfer this Loan Agreement or its obligations under this Loan Agreement in whole or in part, by operation of law or otherwise. 

 

14.Telephone Monitoring and Recording. From time to time, we may monitor and/or record telephone calls regarding the Loan, and the Business and Guarantor agree to any such monitoring and/or recording. 

 

15.Communicating with the Business and the Guarantor; Consent to Contact by Electronic and Other Means. We or our agents may contact the Business and the Guarantor for any lawful purpose related to the Loan, including for the collection of amounts owed to us and for the offering of products or services at any of the addresses, phone numbers or email addresses provided to us. No such contact will be deemed unsolicited. To the greatest extent not prohibited by applicable law, we or our agents may (i) contact the Business and the Guarantor at any address or telephone number (including wireless cellular telephone or ported landline telephone number) that may be provided to us from time to time; (ii) use any means of communication, including, but not limited to, postal mail, electronic mail, telephone or other technology, to reach the Business and the Guarantor; (iii) use automatic dialing and announcing devices which may play recorded messages; and (iv) send text messages to the Business's and Guarantor's telephone. The Business and the Guarantor may contact us at any time to ask that we not contact the Business or the Guarantor using any one or more methods or technologies. 

 

16.Reservation of Rights. We will not be deemed to have waived any of our rights by delaying the enforcement of any of our rights. If we waive any of our rights on one occasion, that waiver will not constitute a waiver by us of our rights on any future occasion. We will be under no duty to enforce payment of the amount owed us under this Loan Agreement by exercising any of our rights under this Loan Agreement. 

 

17.Limitation of Liability. To the maximum extent permitted by applicable law, we and our Affiliates will not be liable to the Business or any Guarantor for any indirect, incidental, special, consequential, or exemplary damages (including damages for loss of profits, goodwill, use, or data), even if we or our Affiliates have been advised of the possibility of such damages or losses. We and our Affiliates will not be liable for any delay or failure to perform any obligation under these terms based on reasons, events, or other matters beyond our reasonable control. In any event, our maximum aggregate liability under this Loan Agreement is $100. 

18.Disputes. Any dispute or claim relating in any way to this Loan Agreement will be resolved by binding arbitration, rather than in court, and administered by the American Arbitration Association (AAA). The Federal Arbitration Act and federal arbitration law apply to this agreement.The Business, Guarantor and we agree that any dispute resolution proceedings will be conducted only on an individual basis and not in a class, consolidated, or representative action. There is no judge or jury in arbitration, and court review of an arbitration award is limited. An arbitrator can, however, award on an individual basis the same damages and relief as a court (including injunctive and declaratory relief or statutory damages), and must follow the terms of this Loan Agreement as a court would.All proceedings must be conducted in accordance with the AAA Commercial Arbitration Rules, and the AAA Expedited Procedures; the Procedures for Large, Complex Commercial Disputes do not apply. The hearing will be in Seattle, Washington. The arbitrator may award to the prevailing party, if any, as determined by the arbitrator, all pre-award expenses of the arbitration, including the arbitrators' fees, administrative fees, travel expenses, court or AAA costs, witness fees, and reasonable attorneys' fees. If for any reason a claim proceeds in court rather than in arbitration, the Business, Guarantor, and we each waive any right to a jury trial. 

 

To begin an arbitration proceeding, the Business or Guarantor must send a letter requesting arbitration and describing its claim to our registered agent Corporation Service Company, 300 Deschutes Way SW, Suite 304, Tumwater, WA 98051. Instructions for filing an arbitration demand with the AAA are available at www.adr.org.

 

19.Governing Law. The Federal Arbitration Act, applicable federal law and the laws of the state of Washington, without regard to the conflict of laws principles, will govern this Loan Agreement and any dispute of any sort that might arise between the Business, any Guarantor and us. This Loan Agreement is entered into between the Business, any Guarantor and us in the state of Washington. 

 

20.Privacy Notice. As a subsidiary of Amazon.com, Inc., Amazon Capital Services, Inc. follows the same information practices as Amazon.com, Inc., and information we collect from the Business and the Guarantor, is subject to the Amazon.com Privacy Notice (the "Privacy Notice"), current version of which is located at:http://www.amazon.com/privacy 

 

21.Credit Bureau Notice. We may report information about the Business's Loan to credit bureaus. Late payments, missed payments, or other defaults on the Business's Loan may be reflected in the Business's credit report. In underwriting and approving the Loan, we reserve all rights to conduct credit checks and financial and legal diligence necessary or desirable to evaluate the creditworthiness of the Business and the Guarantor. 

 

22.Entire Agreement. The Business and the Guarantor agree that this Loan Agreement is the entire agreement with respect to the matters set forth herein and no oral changes can be made. 

 

23.Oral Agreements. PLEASE BE ADVISED THAT ORAL AGREEMENTS OR ORAL COMMITMENTS TO LOAN MONEY, EXTEND CREDIT, OR TO FORBEAR FROM ENFORCING REPAYMENT OF A DEBT ARE NOT ENFORCEABLE UNDER WASHINGTON LAW. 

 

CONSENT TO ELECTRONIC COMMUNICATIONS

 

1.Categories of Communications.The Business and the Guarantor understand and agree that Amazon Capital Services, Inc., our Affiliates, assignees, agents or other holders of the Loan may provide all communications, notices, and transactions related to the Loan by electronic means, including but not limited to the Loan Agreement and any policies, disclosures, notices, transaction information, statements, responses to communications and customer services claims, notices of default, notices regarding delinquencies, notices for collections and any other notices that we may be required to provide to you by law (collectively, “Communications”). 

 

2.Manner of Electronic Communications. Communications may be sent to the Primary Contact Email provided in the Application Information or may be provided in Seller Central. All such Communications shall be considered to be “in writing.” The Business and the Guarantor acknowledge that by accessing Seller Central, the Business and the Guarantor demonstrate that each can access information that we may provide to the Business and the Guarantor by electronic Communications. 

 

3.Copies of Communications and Withdrawal of Consent. The Business and the Guarantor are responsible for printing, storing, and maintaining their own records of such Communications. The Business or the Guarantor may withdraw consent to electronic disclosures by contacting us at amazon-lending@amazon.com, however, withdrawal of consent to electronic disclosures may result in termination of our relationship with the Business and we may consider this Loan immediately due and payable. 

 

4.Electronic Signatures. The Business and the Guarantor acknowledge that by clicking on the "I Agree", the "Submit" or similar button on the application page or elsewhere on the lending landing page of the Seller Central website, the Business and the Guarantor are indicating their intent to sign the relevant document or record and that this will constitute the signature of the Guarantor and an authorized individual of the Business. 

 

TERMS AND CONDITIONS FOR AUTOMATIC ACH PAYMENT OPTION

 

These terms and conditions (the "Terms and Conditions") govern the Business's use of the automatic ACH payment option as described herein and apply if the Business elects to enable automatic debit payments.

 

1.ACH Payment Option. The Business authorizes us to debit the Business's designated financial institution account ("Payment Account") to make one or more payments, as necessary, against any outstanding balance due on the Loan (the "ACH Payment Option"). The Business further authorizes us to debit or credit its Payment Account to correct any erroneous debit, make necessary adjustments to its payments, or to issue a refund back to its Payment Account. The Payment Account must be an account established for commercial or business purposes and must not be used primarily for personal, family, or household purposes, and it must be able to accept debits denominated in US currency. 

 

2.Acceptance of Terms and Conditions. By using the ACH Payment Option, the Business agrees to these Terms and Conditions, and authorizes us (or our agent) to make any inquiries we consider necessary to validate the bank account or any dispute involving payment, including performing credit checks or verifying information with third parties. We may update these Terms and Conditions at any time, and by continuing to use the designated bank account as a payment method, the Business accepts these updated Terms and Conditions. 

 

3.Returned Payments. If any payment using your Payment Account is returned unpaid (for example, if you have insufficient funds available), we may retry the payment. Your bank may charge you an overdraft or other fee for each payment failure. You are responsible for any such fees. 

 

PERSONAL GUARANTY

 

This Section, and all references to Guarantor in this Agreement, is applicable only if we request a Guarantor for the Loan. The Loan Agreement documentation will indicate whether there is a Guarantor.

 

As used in this Section, "you" means the person applying for the Loan, and you certify that you are an owner, sole proprietor, principal or authorized representative of the Business and are duly authorized by the Business to apply for this Loan and execute and deliver the Loan Agreement.

 

You certify that you are at least 18 years old and are the Guarantor of all indebtedness, liabilities and obligations of the Business to Amazon under the Loan Agreement, whether presently existing or hereafter arising (the "Guaranteed Obligations"), that you authorize the Personal Guaranty, and that you agree to the Consent to Electronic Communications as the Guarantor.

 

The Guarantor unconditionally and irrevocably guarantees the Guaranteed Obligations, together with all expenses we incur relating to collection of the Guaranteed Obligations, including reasonable attorneys' fees.

 

The Guarantor understands that we may proceed directly against the Guarantor in their individual or personal capacity without first exhausting our remedies against the Business or any other person or any security held by us or any guarantor, and that this Personal Guaranty will not be affected by failure by us to enforce any rights or remedies we may have against the Business.

 

The Guarantor waives (i) all defenses of the Business pertaining to the duties and obligations of the Business (including discharge in bankruptcy), any evidence thereof, and any security therefor, except the defense of discharge by payment; (ii) all defenses of a surety to which the Guarantor may be entitled by statute or otherwise; (iii) notice of acceptance of this Personal Guaranty and of the creation and existence of the duties and obligations of the Guarantor hereunder; (iv) presentment, demand for payment, notice of dishonor, notice of non-payment, and protest of any instrument evidencing the duties and obligations of the Business; (v) all other demands and notices to the Guarantor or any other person and all other actions to establish the liability of the Guarantor; and (vi) the right to trial by jury in any action in connection with this Personal Guaranty. Guarantor agrees to the Dispute provisions in Section 18 of the Loan Agreement with the same force and effect on any dispute or claim relating in any way to this Personal Guaranty and Guarantor.

 

Any indebtedness the Business may owe to the Guarantor is hereby subordinated to the payment of the Guaranteed Obligations. The Guarantor agrees that after any default by the Business under the Loan Agreement, it will hold any funds received from the Business in trust for us to satisfy the obligations of the Business to us under the Loan Agreement, and will promptly pay those funds to us. Until the Guaranteed Obligations are fully satisfied, Guarantor waives all rights of subrogation, contribution, indemnification, exoneration, or reimbursement the Guarantor may have against the Business arising from the existence of this Personal Guaranty.

 

Nothing, except full payment and discharge of all of the Guarantor's duties and obligations to us, which but for this provision could act as a release or impairment of the liability of the Guarantor, will in any way release, impair, or affect the liability of the Guarantor. The Guarantor hereby consents that we may without further consent or disclosure and without affecting or releasing the obligations of Guarantor hereunder: (a) surrender, exchange, release, assign, or sell any collateral or waive, release, assign, sell, or subordinate any security interest; (b) waive or delay the exercise of any of our rights or remedies against the Business; (c) waive or delay the exercise of any of our rights or remedies in respect of any collateral or security interest now or hereafter held; (d) renew, extend, waive or modify the terms of any obligation, or any instrument or agreement evidencing the same; (e) renew, extend, waive or modify the terms of any security document; (f) apply payments received from the Business or any surety or guarantor or from any collateral, to any indebtedness, liability, or obligations of the Business or such sureties or guarantors whether or not a Guaranteed Obligation hereunder; and (g) realize on any security interest, judicially or nonjudicially, with or without preservation of a deficiency judgment.

 

This Personal Guaranty will not be discharged or affected by the death of the Guarantor, will bind all heirs, administrators, representatives, and assigns, and may be enforced by or for the benefit of any successors in interest to us. The Guarantor may not assign or otherwise transfer all or any part of its rights or obligations hereunder. 

 

Guarantor represents and warrants as follows:

 

(a)The execution, delivery and performance by Guarantor of this Personal Guaranty do not and will not (i) conflict with or contravene any law, rule, regulation, judgment, order, or decree of any government, governmental instrumentality or court having jurisdiction over Guarantor or Guarantor's activities or properties, (ii) conflict with, or result in any default under, any agreement or instrument of any kind to which Guarantor is a party or by which Guarantor or any of Guarantor's properties may be bound or affected or (iii) require the consent, approval, order, or authorization of, or registration with or the giving of notice to any United States or other governmental authority or any person or entity not a party to the Loan Documents; 

 

(b)This Guaranty constitutes a legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with its terms; 

 

(c)There is no action, litigation or other proceeding pending or to Guarantor's knowledge threatened against Guarantor before any court, arbitrator or administrative agency that may have a material adverse effect on the assets or the business or financial condition of Guarantor or that would prevent, hinder or jeopardize the performance by Guarantor of Guarantor's obligations under this Guaranty; 

 

(d)Guarantor is not party to any contract, agreement, indenture or instrument, or subject to any restriction individually or in the aggregate that would have a material adverse effect on Guarantor's financial condition or business or that would in any way jeopardize the ability of Guarantor to perform under this Guaranty. 

 

Guarantor acknowledges that we are making credit accommodations to the Business with reliance on the truth and accuracy of Guarantor's representations set forth above, and Guarantor's enforceable Guaranty is an inducement for us to make such credit accommodations.

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