Document:

INVOICE
PURCHASE AGREEMENT

 

THIS
INVOICE PURCHASE AGREEMENT is made on January 30, 2018 between Sharedlabs, Inc. d/b/a SharedLabs; ITech US, Inc. d/b/a iTech;
and Smartworks, LLC d/b/a SmartWorks collectively known as (“Seller”) and LSQ Funding Group, L.C. (“Purchaser”).

 

	1.	Definitions
    and Index to Definitions. The following terms shall have the following meanings. All capitalized terms not defined
    in this Agreement shall have the meaning set forth in the Uniform Commercial Code (the “UCC”) as adopted in the
    Chosen State:

 

	 	1.1.	“Advance
    Rate” - 90.00%, which percent may be revised at any time by Purchaser in Purchaser’s reasonable discretion.
    Notwithstanding the foregoing, the Advance Rate for unbilled invoices shall be 75.0%, which percent may be revised at any
    time by the Purchaser in Purchaser’s reasonable discretion.
	 	 	 
	 	1.2.	“Aging
    and Collection Fee” - N/A
	 	 	 
	 	1.3.	“Avoidance
    Claim” - Any claim that a payment received by Purchaser is a preference or otherwise avoidable under the United
    States Bankruptcy Code or any other debtor-relief statute.
	 	 	 
	 	1.4.	“Balance
    Subject to Funds Usage Daily Fee” - The unpaid Face Amount of all Purchased Accounts minus the Reserve Account.
	 	 	 
	 	1.5.	“Chosen
    State” - Delaware.
	 	 	 
	 	1.6.	“Clearance
    Days” - Three (3) business days.
	 	 	 
	 	1.7.	“Closed
    Account” - An Account for which Purchaser has received full payment.
	 	 	 
	 	1.8.	“Collateral”
    - All now owned and hereafter acquired personal property and fixtures, and proceeds thereof, (including proceeds of proceeds)
    including without limitation: Accounts, including health-care insurance receivables; Chattel Paper; Inventory; Equipment;
    Instruments, including Promissory Notes; Investment Property; Documents; Deposit Accounts; Letter of Credit Rights; General
    Intangibles; and Supporting Obligations.
	 	 	 
	 	1.9.	“Daily
    Rate Fee” - The product of the Daily Rate and the Face Amount of each Purchased Account, calculated daily from invoice
    date as long as the invoice is outstanding.
	 	 	 
	 	1.10.	“Daily
    Rate” - 0.0367% of the Face Amount of each Account.
	 	 	 
	 	1.11.	“Early
    Termination Fee” - See Sections 21.1. through 21.3.
	 	 	 
	 	1.12.	“Eligible
    Account” - An Account at all times acceptable to Purchaser in its sole discretion.
	 	 	 
	 	1.13.	“Eligibility
    Period” - 60 days beyond net terms of the Invoice, but in no case more than 120 days from Invoice date.

 

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	 	1.14.	“Events
    of Default” - See Section 19.
	 	 	 
	 	1.15.	“Face
    Amount” - The face amount due on a Purchased Account at the time of purchase.
	 	 	 
	 	1.16.	“Funds
    Usage Daily Fee” N/A
	 	 	 
	 	1.17.	“Ineligible
    Account” - An Account other than an Eligible Account as deemed by Purchaser in its sole discretion.
	 	 	 
	 	1.18.	“Invoice”
    - The document that evidences or is intended to evidence an Account.
	 	 	 
	 	1.19.	“Late
    Charge” - 18% per annum, which shall accrue and be payable on demand on any obligation not paid when due.
	 	 	 
	 	1.20.	“Maximum
    Amount” - $15,000,000.00.
	 	 	 
	 	1.21.	“Misdirected
    Payment Fee” - 15.00% percent of the amount of any payment on account of a Purchased Account which has been received
    by Seller or by a third party and not paid to Purchaser on the next Business Day following the date of receipt by Seller or
    the date of Seller’s knowledge of receipt by such third party.
	 	 	 
	 	1.22.	“Origination
    Fee” – 0.40% of the Maximum Amount, paid at initial purchase of accounts.
	 	 	 
	 	1.23.	“Parties”
    - Seller and Purchaser.
	 	 	 
	 	1.24.	“Payor”
    - An Account Debtor, other obligor, or entity obligated on an Account, making payment for the account of such party.
	 	 	 
	 	1.25.	“Prime
    Rate” - N/A
	 	 	 
	 	1.26.	“Prime
    Rate Adjustment” - N/A
	 	 	 
	 	1.27.	“Purchase
    Price” - The Face Amount of a Purchased Account minus the Invoice Purchase Fee.
	 	 	 
	 	1.28.	“Purchased
    Account” - An Account purchased which is not a Closed Account.
	 	 	 
	 	1.29.	“Required
    Reserve Amount” - 100% minus the Advance Rate multiplied by the unpaid Face Amount of Eligible Accounts, plus 100%
    of the Face Amount of Ineligible Accounts, plus accrued fees and expenses.
	 	 	 
	 	1.30.	“Reserve
    Account” - An account or accounts on the books of Purchaser for the purposes set forth herein.
	 	 	 
	 	1.31.	“Reserve
    Shortfall” - The amount by which the Reserve Account is less than the Required Reserve Amount.
	 	 	 
	 	1.32.	“Term
    and Termination Date” - See Section 21.

 

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	2.	Assignment
    and Sale. Seller shall sell to Purchaser as absolute owner, and Purchaser shall purchase from Seller, Seller’s
    Accounts as Purchaser determines in its sole discretion. Each Account shall be accompanied by such documentation supporting
    and evidencing the Account as Purchaser may request. Purchaser shall pay the Purchase Price of any Purchased Account, less
    the Required Reserve Amount and any amounts due to Purchaser from Seller, within two (2) business days of the date of Purchase.
    Seller represents that all Purchased Accounts are true and collectible and are sold to Purchaser free and clear of any claims.
	 	 
	3.	Reserve
    Account. Purchaser may credit any portion of any Purchase Price to the Reserve Account, including but not limited
    to the amount of the Reserve Shortfall. So long as there is no existing Event of Default, Purchaser shall pay to Seller upon
    Seller’s request, any amount by which the Reserve Account exceeds the Required Reserve Amount. Purchaser may charge
    the Reserve Account for any amounts accrued and unpaid from Seller to Purchaser.
	 	 
	4.	Notice
    of Assignment and Lock Box. Purchaser may notify any Account Debtors obligated with respect to any Account that the
    underlying Account has been assigned to Purchaser by Seller and that payment thereof is to be made to the order of and directly
    and solely to Purchaser. All Invoices for Accounts sent by Seller to Account Debtors shall contain on the face of the Invoice
    the following legend: “This account is assigned and payable only to LSQ Funding Group, L.C. Payments should be sent
    to LSQ at: P.O. Box 404322, Atlanta, GA 30384-4322.”
	 	 
	5.	Authorization
    for Purchases. Purchaser is authorized to purchase Accounts upon instructions received from any authorized representative
    designated by Seller.
	 	 
	6.	Fees.
    Seller shall pay to Purchaser throughout the Term or any Renewal Term of this Agreement, the Daily Rate Fee and the Aging
    and Collection Fee, on the date(s) that each Fee is due and payable as provided as set forth in Sections 1.10., and 1.2 herein.
	 	 
	7.	Other
    Charges and Expenses. Seller shall reimburse Purchaser $15.00 for wire fees, the actual UCC Filing fees, the Misdirected
    Payment Fee, and the actual field examination fees directly incurred by Purchaser in the administration of this Agreement.
    Reimbursable Expenses are due at the time of payment of the applicable fees or expenses by Purchaser and may be charged to
    the Reserve Account.
	 	 
	8.	Repurchase
    Of Accounts. Seller shall immediately on demand by Purchaser repurchase any Purchased Account that Purchaser determines
    at any time is uncollectible for any reason or is otherwise no longer an Eligible Account and on such demand shall pay to
    Purchaser the then unpaid Face Amount of the Account, together with any accrued but unpaid fees relating to the Account. Purchaser
    shall retain its security interest in any Account repurchased by Seller.
	 	 
	9.	Security
    Interest. To secure payment and performance of all present and future obligations of Seller to Purchaser, Seller grants
    to Purchaser a continuing first priority security interest in and to the Collateral, and authorizes Purchaser to file a UCC-1
    in all jurisdictions and offices Purchaser deems appropriate which names Seller as the debtor and covering the Collateral.
	 	 
	10.	Clearance
    Days. Clearance Days will be added to the date on which Purchaser receives any payment before such payment is credited
    to reduce outstanding amounts due hereunder.

 

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	11.	Authorization
    to Purchaser. Seller authorizes Purchaser, at Seller’s expense, to exercise the following powers until Purchaser
    has been paid in full: (a) receive, take, endorse, assign, deliver, accept and deposit, in the name of Purchaser or Seller,
    proceeds of any Collateral; (b) take or bring, in the name of Purchaser or Seller, all steps, actions, suits or proceedings
    deemed by Purchaser necessary or desirable to effect collection of all Collateral; (c) file any claim under any bond or under
    any trust fund; (d) pay any sums necessary to discharge any lien, claim, or encumbrance which is senior to Purchaser’s
    security interest in any assets of Seller, which sums shall be included as obligations of Seller and which shall accrue the
    Late Charge and be immediately due and payable; (e) notify any Payor obligated with respect to any Account, that the underlying
    Account has been assigned to Purchaser by Seller and that payment thereof is to be made to the order and directly and solely
    to Purchaser; (f) communicate directly with Seller’s Payors to verify the amount and validity of any Account created
    by Seller; and (g) endorse and deposit on behalf of Seller any checks tendered by an Account Debtor “in full payment”
    of its obligation to Seller.
	 	 
	12.	ACH
    Authorization. Purchaser may process electronic debit or credit entries through the ACH system to any deposit account
    of Seller.
	 	 
	13.	Covenants
    By Seller.

 

	 	13.1.	After
    written notice by Purchaser to Seller, and automatically, without notice following an Event of Default, Seller shall not (a)
    grant any extension of time for payment of any of its Accounts, (b) compromise or settle any of its Accounts for less than
    the full amount, (c) release in whole or in part any Account Debtor, or (d) grant credits, discounts, allowances, deductions,
    or return authorizations for any Accounts.
	 	 	 
	 	13.2.	Seller
    must keep at its principal place of business for a period of five years all books of account and business records customary
    for the industry, which books and records are subject to inspection by Purchaser and its agents and representatives during
    normal business hours. Purchaser or its designee shall have access, during reasonable business hours if prior to an Event
    of Default and at any time if on or after an Event of Default, to all premises where Collateral is located for the purposes
    of inspecting (and removing, if after the occurrence of an Event of Default) any of the Collateral, and Seller shall permit
    Purchaser or its designee to make copies of such books and records as Purchaser may request.
	 	 	 
	 	13.3.	Seller
    must give Purchaser 5 business days’ prior written notice of any change to its present name, the address of its headquarters
    or where its books and records are located, and any change to its form or jurisdiction of organization.
	 	 	 
	 	13.4.	Seller
    shall pay when due all of its payroll and other taxes, and shall provide proof of payment to Purchaser.
	 	 	 
	 	13.5.	Seller
    shall not create, incur, or permit the existence of any lien upon any Collateral without prior consent of Purchaser.
	 	 	 
	 	13.6.	Seller
    shall provide Purchaser, within 2 business days of receipt by Seller, copies of any business or legal notices, summonses,
    complaints, or other proceedings received by Seller.
	 	 	 
	 	13.7.	Seller
    shall pay to Purchaser on the next banking day following the date of receipt by Seller the amount of (a) any payment on account
    of a Purchased Account; and (b) after the occurrence of an Event of Default, any payment on account of any Account.

 

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	14.	Account
    Stated. Purchaser shall make available to Seller a statement setting forth the transactions arising hereunder. Each
    statement shall be considered correct and binding upon Seller as an account stated, except to the extent that Purchaser receives,
    within 30 days after the availability of such statement, written notice from Seller of any specific exceptions by Seller to
    that statement, and then it shall be binding against Seller as to any items to which it has not objected.
	 	 
	15.	Account
    Disputes. Seller shall notify Purchaser of, and at Purchaser’s request, shall settle all disputes concerning
    any Purchased Account, at Seller’s sole cost and expense. Seller shall not, without Purchaser’s prior consent,
    compromise or adjust a Purchased Account or grant any additional discounts, allowances or credits on a Purchased Account.
    Purchaser may attempt to settle, compromise, or litigate any dispute upon such terms, as Purchaser in its sole discretion
    deems advisable.
	 	 
	16.	Representation
    and Warranties. Seller represents and warrants that (a) Seller is fully authorized to enter into this Agreement; (b)
    this Agreement constitutes a legal and valid obligation that is binding upon Seller and that is enforceable against it; (c)
    Seller is in good standing in the state of its organization; (d) there are no pending actions, suits, or other legal proceedings
    of any kind (whether civil or criminal) now pending (or, to its knowledge, threatened) against Seller, the adverse result
    of which would in any material respect affect its property or financial condition, or threaten its continued operations; (e)
    Seller has not conducted business under or used any other name, whether legal or fictitious; (f) the Purchased Accounts are
    and will remain bona fide existing obligations created by the sale and delivery of goods or services in the ordinary course
    of its business, and are unconditionally owed and will be paid to Purchaser without defenses, disputes, offsets, counterclaims,
    or rights of return or cancellation; and (g) Seller has not received notice of actual or imminent bankruptcy, insolvency,
    or material impairment of the financial condition of any applicable Account Debtor regarding Purchased Accounts.
	 	 
	17.	Indemnification.
    Seller agrees to indemnify Purchaser and save it harmless against any suits, claims, liabilities, demands and expenses, including
    but not limited to, any loss arising out of the assertion of any Avoidance Claim, and shall pay to Purchaser on demand the
    amount thereof including attorneys’ fees and expenses, resulting from or arising under this Agreement. With respect
    to an Avoidance Claim, Seller shall notify Purchaser within two (2) business days of Seller’s becoming aware of the
    assertion of an Avoidance Claim. This provision shall survive termination of this Agreement.
	 	 
	18.	Disclaimer
    of Liability. Purchaser will not be liable to Seller for any lost profits, lost savings or other consequential, incidental,
    punitive, or special damages resulting from or arising out of or in connection with this Agreement.
	 	 
	19.	Default
    and Events of Default. The following events will constitute an Event of Default hereunder: (a) receipt by Seller or
    a third party of a Purchased Account which is not paid to Purchaser within three (3) business days following the date of Seller’s
    receipt or knowledge of receipt by such third party; (b) Seller defaults in the payment of any obligations; (c) the performance
    of any provision, or any warranty or representation contained proves to be false in any way, howsoever minor, under this Agreement;
    (d) Seller or any guarantor of the obligations becomes subject to any debtor-relief proceedings; (e) any guarantor fails to
    perform or observe any of the guarantor’s obligations to Purchaser or shall notify Purchaser of its intention to rescind,
    modify, terminate or revoke any guaranty, or any guaranty shall cease to be in full force and effect for any reason whatever;
    (f) Purchaser for any reason, in good faith, deems itself insecure with respect to the prospect of repayment or performance
    of any obligations.

 

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	 	19.1.	SELLER
    WAIVES ANY REQUIREMENT THAT PURCHASER INFORM SELLER BY AFFIRMATIVE ACT OR OTHERWISE OF ANY ACCELERATION OF SELLER’S
    OBLIGATIONS. PURCHASER’S FAILURE TO CHARGE OR ACCRUE INTEREST OR FEES AT ANY “DEFAULT” OR “PAST DUE”
    RATE SHALL NOT BE DEEMED A WAIVER BY PURCHASER OF ITS CLAIM.
	 	 	 
	 	19.2.	Upon
    the occurrence of any Event of Default, in addition to any rights Purchaser has under this Agreement or applicable law, Purchaser
    may immediately terminate this Agreement, at which time all obligations shall immediately become due and payable without notice.
	 	 	 

 

	20.	Amendment
    and Waiver. Only a writing signed by all parties may amend this Agreement. No failure or delay in exercising any right
    shall impair any right that Purchaser has, nor shall any waiver by Purchaser be deemed a waiver of any default or breach occurring
    subsequently. Purchaser’s rights and remedies are cumulative and not exclusive of each other or of any rights or remedies
    that Purchaser would otherwise have.
	 	 
	21.	Term
    and Termination Date. This Agreement will be effective when executed by the Parties, will continue in full force and
    effect for 1 year thereafter (the “Term”), and shall be further extended automatically annually (the “Renewal
    Term”), unless Seller provides written notice of its intention to terminate at least 30days prior to each anniversary
    date. Notwithstanding the preceding sentence, such termination shall not occur and the Agreement shall continue as if no notice
    was given unless, on or before the termination date, Seller has fully repaid Purchaser all monies due, and delivered to Purchaser
    the release as required by Section 22. below.

 

	 	21.1.	If
    effective notice by Seller under Section 21. above is not provided, then in addition to any other fees due under this Agreement,
    Seller agrees that it will pay an early termination fee equal to 0.75% multiplied by the Maximum Amount set forth in Section
    1.19. herein multiplied by the number of months remaining in the Term or any Renewal Term (the “Early Termination Fee”).
	 	 	 
	 	21.2.	Notwithstanding
    Section 21.1., if Seller intends to refinance with a bank its obligations under this Agreement, Seller may terminate this
    Agreement prior to the end of the Term or any Renewal Term by providing Purchaser 30 days’ prior written notice and
    refinancing with the bank. If such notice is provided and Seller refinances with the bank, no Early Termination Fee pursuant
    to Section 21.1. shall be due.
	 	 	 
	 	21.3.	If
    Seller refinances its obligations under this Agreement with a bank without providing notice as required under Section 21.2.,
    Seller may terminate this Agreement prior to the end of the Term or any Renewal Term by paying an early termination fee equal
    to 0.5% multiplied by the Maximum Amount set forth in Section 1.19.
	 	 	 
	 	21.4.	Purchaser
    may terminate this Agreement at any time by giving Seller 30 days’ prior written notice of termination, whereupon this
    Agreement shall terminate on the earlier date of 30 days thereafter or the end of the then current Term or Renewal Term, upon
    which termination date Seller shall fully repay to Purchaser all monies due and deliver to Purchaser the release as required
    under Section 22. below.

 

	22.	No
    Lien Termination without Release. Notwithstanding payment in full of all obligations by Seller, Purchaser shall not
    be required to record any termination or satisfaction of its liens on the Collateral unless and until Seller and any guarantors
    deliver to Purchaser a general release. Seller understands that this provision constitutes a waiver of its rights under §9-513
    of the UCC .

 

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	23.	Conflict.
    Unless otherwise expressly stated in any other agreement between Purchaser and Seller, if a conflict exists between the provisions
    of this Agreement and the provisions of such other agreement, the provisions of this Agreement shall control.
	 	 
	24.	Severability.
    In the event any one or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable
    in any respect, then such provision shall be ineffective only to the extent of such prohibition or invalidity, and the validity,
    legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.
	 	 
	25.	Expenses.
    In addition to those reasonable expenses set forth in Section 7 herein, Seller agrees to reimburse Purchaser the actual amount
    of all costs and expenses, including attorneys’ fees and expenses, which Purchaser may incur (a) protecting, preserving
    or enforcing any lien, security or other right granted by Seller to Purchaser or arising under applicable law, whether or
    not suit is brought, including but not limited to the defense of any Avoidance Claims or the defense of Purchaser’s
    lien priority; (b) for travel and attorneys’ fees and expenses incurred in complying with any subpoena or other legal
    process in any way relating to Seller; and (c) for the actual amount of all costs and expenses, including attorneys’
    fees, which Purchaser may incur in enforcing this Agreement, or in connection with any federal or state insolvency proceeding
    commenced by or against Seller or any Account Debtor, including those (i) arising out of an automatic stay, (ii) seeking dismissal
    or conversion of a bankruptcy proceeding or (ii) opposing confirmation of Seller’s plan thereunder. All reasonable expenses
    will be subtracted from the Reserve Account and are payable by Seller upon demand by Purchaser. This provision shall survive
    termination of this Agreement.
	 	 
	26.	Entire
    Agreement. This Agreement supersedes all prior or contemporaneous agreements and understandings between the parties,
    verbal or written, express or implied, relating to the subject matter hereof. No promises of any kind have been made by Purchaser
    or any third party to induce Seller to execute this Agreement. No course of dealing, course of performance, or trade usage,
    and no parol evidence of any nature, shall be used to supplement or modify any terms of this Agreement.
	 	 
	27.	Choice
    of Law. This Agreement shall be governed by, construed under, and enforced in accordance with the internal laws of
    the Chosen State.
	 	 
	28.	Jury
    Trial Waiver. IN RECOGNITION OF THE HIGHER COSTS AND DELAY WHICH MAY RESULT FROM A JURY TRIAL, THE PARTIES HERETO
    WAIVE ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION (a) ARISING HEREUNDER, OR (b) IN ANY WAY
    CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT HERETO, IN EACH
    CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; AND EACH PARTY FURTHER
    WAIVES ANY RIGHT TO CONSOLIDATE ANY SUCH ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY
    TRIAL CANNOT BE OR HAS NOT BEEN WAIVED; AND EACH PARTY HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE
    OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY HERETO MAY FILE AN ORIGINAL COUNTERPART OR A
    COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT
    TO TRIAL BY JURY.

 

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	29.	Venue;
    Jurisdiction. The parties agree that any suit, action, or proceeding arising out of the subject matter or the interpretation,
    performance, or breach of this Agreement, shall, if Purchaser so elects, be instituted in any courts of the Chosen State or
    those located in Duval County, Florida (each an “Acceptable Forum”). Each Party agrees that the Acceptable Forums
    are convenient to it, and each Party irrevocably submits to the jurisdiction of the Acceptable Forums, irrevocably agrees
    to be bound by any judgment rendered in connection with this Agreement, and waives any and all objections to jurisdiction
    or venue that it may have under the laws of the Acceptable Forums or otherwise in those courts in any such suit, action, or
    proceeding. Should such proceeding be initiated in any other forum, Seller waives any right to oppose any motion or application
    made by Purchaser as a consequence of such proceeding having been commenced in a forum other than an Acceptable Forum.
	 	 
	30.	Counterparts.
    This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if
    all signatures were upon the same instrument. Delivery of an executed counterpart of the signature page to this Agreement
    by facsimile or other electronic means shall be effective as delivery of a manually executed counterpart of this Agreement,
    and any Party delivering such an executed counterpart of the signature page to this Agreement by such means to any other Party
    shall thereafter also promptly deliver a manually executed counterpart of this Agreement to such other Party, provided that
    the failure to deliver such manually executed counterpart shall not affect the validity, enforceability, or binding effect
    of this Agreement.
	 	 
	31.	Notice.
    All notices required to be given to any Party shall be deemed given upon the first to occur of (i) transmittal sent by commercial
    overnight carrier, (ii) transmittal by electronic means to a receiver under the control of such Party; or (iii) actual receipt
    by such Party or an employee or agent of such Party. Notices shall be sent to the following addresses, or to such other addresses
    as each such Party may in writing hereafter indicate:

 

	 	PURCHASER:	LSQ
    Funding Group, L.C.	 
	 	 	2600
    Lucien Way	 
	 	 	Maitland,
    FL 32751	Officer:
    William Samuelson, wsamuelson@lsq.com
	 
	 	SELLER:	Sharedlabs,
    Inc d/b/a SharedLabs; ITech US, Inc d/b/a iTech;

    Smartworks, LLC d/b/a SmartWorks
	 	 	118
                                         West Adams Street,

        Suite
        200
	 
	 	 	Jacksonville,
    FL 322012	Officer:
    Jason Cory

 

	32.	Successors
    and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective
    successors and assigns.
	 	 
	33.	Confidentiality
    and Nondisclosure. The Parties agree that the terms of this Agreement, all business methods and trade secrets, and
    any and all other records and information clearly and specifically identified by the applicable Party as confidential will
    be held in strict confidence and treated as the confidential property of the other Party. A Party will not, except in the
    due performance of its duties or the enforcement of its rights under this Agreement, disclose any of the foregoing to any
    person, unless specifically authorized to do so in writing by the other Party or unless required by law. The provisions of
    this Section shall survive the termination of this Agreement.

 

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IN
WITNESS WHEREOF the parties hereto have affixed their hands and seals on the day and year first above written.

 

SELLER:
Sharedlabs, Inc. d/b/a SharedLabs

 

	By:	 	 
	 
	Name:	 	 
	 
	Title:	 	 

 

SELLER: ITech US, Inc. d/b/a iTech

 

	By:	 	 
	 
	Name:	 	 
	 
	Title:	 	 

 

SELLER:
Smartworks, LLC d/b/a SmartWorks

 

	By:	 	 
	 
	Name:	 	 
	 
	Title:	 	 

 

PURCHASER:
LSQ Funding Group, L.C.

 

	By:	 	 
	 	William
                                         Samuelson

        Executive
        Vice President

 

    	 	 	9 of 9THE
LOAN EVIDENCED HEREBY IS SUBORDINATED TO FULL PAYMENT OF THE INDEBTEDNESS

DUE SENIOR LENDER (DEFINED BELOW) PURSUANT TO THAT DEBT AND LIEN SUBORDINATION AGREEMENT BY AND
BETWEEN LENDER AND SENIOR LENDER

 

This
Business Loan and Security Agreement (“Agreement”), dated as of August 11, 2017, is entered into by the Borrower named
below and Super G Capital, LLC, a Delaware limited liability company (“Lender”).

 

The
following chart (“Loan Chart”) sets forth the loan and repayment terms of the Borrower’s obligation:

 

	BORROWER	NAME
    OF BORROWER	SHAREDLABS,
    INC., a Delaware corporation, and its Affiliates listed on Schedule 1 attached hereto
	ADDRESS	118
    W. Adams, Suite 200

    Jacksonville, FL 32202
	NAME
    OF PRINCIPAL	Jason
    Cory

 

	LOAN
    DETAILS	AMOUNT
    OF LOAN	$2,000,000
	COMMITMENT
    FEES	$30,000
	PAYMENT
    TO EXISTING SECURED LENDER*	$0
	REMAINING
    DISBURSEMENT AMOUNT	$1,970,000
	TOTAL
    INTEREST CHARGE**	$800,000
	TOTAL
    PAYBACK*	$2,800,000;
    provided that the Total Payback of the Loan shall be reduced by: (a) $300,000 if $2,500,000 of the Total Payback of
    the Loan is paid to Lender by no later than one hundred eighty (180) days following the date of this Agreement; and (b) $200,000
    if $2,600,000 of the Total Payback of the Loan is paid to Lender by no later than the first anniversary of the date of this
    Agreement
	 	EXIT
    FEE	See
    Section 2.2 below.

 

	LOAN
    PAYMENT SCHEDULE	START
    DATE FOR PAYMENTS	September
    1, 2017
	PAYMENT
    FREQUENCY***	Semimonthly
	NUMBER
    OF PAYMENTS	Forty-eight
    (48), subject to the reduction set forth under the heading “TOTAL PAYBACK” above.
	SEMI-MONTHLY
    PAYMENT AMOUNT	$58,333.33

 

	COLLATERAL	ALL
    PERSONAL PROPERTY ASSETS	 
	PERMITTED
    ENCUMBRANCES	SEE
    ADDENDUM 1
	CAP
    ON PURCHASE MONEY DEBT	$100,000

 

SEE
CONDITIONS TO FUNDING ON ADDENDUM 2

SEE
ADDITIONAL COVENANTS ON ADDENDUM 3

SEE
LOAN CLOSING CHECKLIST ON ADDENDUM 4

 

	*	Existing
    Secured Lender is Community Bank, N.A.
	**	Does
    not include any Commitment Fees or Exit Fee.
	**	Payments
    to be made two (2) times each calendar month (“Semimonthly Payments”) for the “Number of Payments”
    commencing on the “Start Date For Payments” set forth above. Thereafter, Semimonthly Payments shall be made on
    the first Business Day following the fifteenth (15th) day of each calendar month and on the first Business Day following the
    first (1st) day of each calendar month.

 

    	 	CASHFLOW	Page 1 of 28

    	 

    

 

RECITALS

 

WHEREAS,
Borrower desires to obtain a loan of money (the “Loan”) from Lender in the amounts set forth in the above Loan Chart
and Lender is willing to make the Loan, but only on the terms and conditions set forth in this Agreement.

 

NOW,
THEREFORE, in consideration of the promises and the mutual promises herein contained and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Lender shall make the Loan on the following terms and conditions:

 

	1.	LOAN

 

1.1       Loan.
Lender shall make the Loan to Borrower of the sums designated in the Loan Chart as “Amount of Loan,” subject to the
terms and conditions of this Agreement.

 

1.2       Funding.
Lender shall not be obligated to fund the Loan until after all conditions set forth in Addendum 2 have been satisfied or waived
in writing by Lender. As soon as all funding conditions have been satisfied or waived in writing by Lender, Lender shall fund
the Loan by paying: (a) to Borrower’s existing lender the amount specified in the Loan Chart as the “Payment to Existing
Secured Lender”; and (b) to Borrower the “Remaining Disbursement Amount” specified in the Loan Chart by making
an ACH transfer to Borrower’s account designated on the ACH authorization form (“Borrower’s Account”).
Lender shall retain, from the remaining balance of the proceeds of the Loan, an amount equal to the “Origination and/Other
Fees” shown on the Loan Chart.

 

	2.	PAYMENT
    TERMS

 

2.1       Repayment.
Borrower shall repay the Loan by paying the Total Payback Amount specified and on the terms set forth in the Loan Chart, subject
to the additional terms set forth in this Agreement.

 

2.2       Exit
Fee. On or before the third anniversary of the date of this Agreement, at Lender’s option, which it may exercise in
its sole and absolute discretion, Lender may, in lieu of exercising the warrant granted to Lender as described in Addendum 3,
require that Borrower pay to Lender an exit fee of $300,000 (the “Exit Fee”).

 

2.3       [RESERVED].

 

2.4       Prepayment
Limitation. Except as provided in the Loan Chart, Borrower shall be entitled to prepay all (but not less than all) of the
Total Payback for the Loan without discount, either before or after an Event of Default, and any interest that may be owing and
included in the Total Payback for the Loan shall be all due and payable and not subject to any credit or deduction of the total
amount due as a result of payment being made prior to the due date for the last payment.

 

2.5       Interest.
Interest for the Loan is already included in the amount specified in the Loan Chart as Total Payback. Following an Event of Default,
an additional interest charge of five percent (5%) per annum on the then outstanding Obligations shall be immediately due and
owing from the date of the Event of Default until Lender has received the Total Payback set forth in the Loan Chart.

 

2.6       Late
Fee. If any Payment Amount set forth in the Loan Chart is not received in full by Lender as of the applicable due date, and
such failure is not cured within three (3) Business Days of the date due, Borrower authorizes Lender, without notice to Borrower,
to charge a late charge equal to five percent (5%) of such Payment Amount then due, or the maximum amount permitted by applicable
law, whichever is less (the “Late Fee”), by initiating debit charges to Borrower’s Account. The Late Fee shall
apply only to scheduled payments and shall not apply to any lump sum payment due upon acceleration.

 

    	 	CASHFLOW	Page 2 of 28

    	 

    

 

2.7       Borrower’s
Obligation to Pay Is Not Conditional on Amount of Funds in Borrower’s Account. Borrower’s obligation to repay
the Obligations is not dependent upon whether or not there are sufficient funds in the Borrower’s Account, nor is Borrower’s
obligation to pay excused if Borrower receives insufficient income to make any payment required under this Agreement. If, for
any reason, there are insufficient funds in Borrower’s Account or insufficient income to cover any payment due under this
Agreement, or if for any reason Lender is unable to collect on an ACH request to Borrower’s Account, Lender shall provide
Borrower with notice of such, and Borrower agrees to, upon receipt of such notice, immediately make said payment by regular check,
cashier’s check, money order or by wire transfer as instructed by Lender. Borrower understands that payments made by any
method other than that contemplated by the ACH Authorization may result in a delay in Lender’s receipt of such payment and
that Borrower may incur a Late Fee if the payment is received late.

 

	3.	SECURITY
    INTEREST IN COLLATERAL

 

3.1       Collateral
And Loan Security. As security for the payment of the Loan, and all other liabilities and obligations of the Borrower to Lender,
now existing or hereafter created, whether under the Loan Documents or otherwise (collectively, the “Obligations”)
(as further defined below), Borrower hereby unconditionally grants, assigns, and pledges to Lender a continuing security interest
(the “Security Interest”) in all personal property, tangible or intangible, of Borrower whether now owned or hereafter
acquired or arising and wherever located, including Borrower’s right, title, and interest in and to the following, whether
now owned or hereafter acquired or arising and wherever located: all accounts, all chattel paper, all commercial tort claims,
all deposit accounts (including, without limitation, the Borrower’s Account), all documents, all general intangibles (including,
without limitation, all payment intangibles, patents, patent applications, trademarks, trademark applications, trade names, copyrights,
copyright applications, software, engineering drawings, service marks, customer lists, goodwill, and all licenses, permits, agreements
of any kind or nature pursuant to which Borrower possesses, uses or has authority to possess or use property of others or others
possess, use or have authority to possess or use property); all goods (including all equipment, fixtures and inventory), all investment
property, securities and all other investment property; supporting obligations; any other contract rights or rights to the payment
of money; insurance claims and proceeds; commercial tort claims; all money, all negotiable collateral, all instruments, all books
and records, and all supporting obligations and proceeds arising from or relating to any of the foregoing (the “Collateral”).

 

3.2       [RESERVED].

 

3.3       Additional
Documents. Borrower shall execute from time to time, upon the request of Lender, such financing statements or other documents
as are reasonably required by Lender to perfect or continue the Security Interest described herein.

 

3.4       Lender
Appointed Attorney-In-Fact. Borrower hereby irrevocably appoints Lender as Borrower’s attorney-in-fact, with full authority
in the place and stead of Borrower and in the name of Borrower following the occurrence of an Event of Default which is continuing,
so as to permit Lender to take any action and to execute any instrument that Lender may deem necessary or advisable to accomplish
the purposes of this Agreement, including but not limited to continuing perfection of Lender’s security interest.

 

3.5       Consent.
Borrower consents to the Lender taking any and all steps that Lender deems reasonable and necessary to ensure that Lender has
obtained a valid and perfected security interest in the Collateral. Accordingly, Borrower consents to having Lender file any liens,
financing statements, or any other documentation, as required by the California Commercial Code or any other laws, rules, or regulations
in order to establish Lender’s Security Interest in the Collateral and/or perfect Lender’s Security Interest.

 

	4.	REPRESENTATIONS
    AND WARRANTIES

 

In
order to induce Lender to enter into this Agreement and to make the Loan, Borrower makes the following representations and warranties
to Lender, each of which shall be deemed made as of the effective date of this Agreement and shall be continuing until all Obligations
arising or related to this Agreement have been paid and performed in full. Any knowledge acquired by Lender shall not diminish
its rights to rely upon such representations and warranties:

 

4.1       Legal
Status. Borrower, if a corporation, limited liability company, partnership, trust, or other legal entity, has been duly organized
and is validly existing under the laws of its jurisdiction of organization and is qualified to transact business, and has made
all filings and is in good standing, in every jurisdiction in which the nature of its business or assets requires such qualification.
Borrower has all requisite power and authority to own its properties and conduct its business as presently conducted and as proposed
to be conducted and to execute and deliver, and to perform its Obligations under, this Agreement.

 

    	 	CASHFLOW	Page 3 of 28

    	 

    

 

4.2       No
Violation. The making and performance by Borrower of the Loan Documents do not violate any provision of law or any provision
of Borrower’s formation documents, including, without limitation, articles of incorporation or organization or any operating,
partnership or trust agreement, or result in a breach of, or constitute a default under, any agreement, indenture, or other instrument
to which Borrower is a party or by which Borrower may be bound.

 

4.3       Loan
For Specific Purposes Only. The proceeds of the Loan must be used only for the specific business purposes described in the
application for the Loan submitted by Borrower to Lender. Borrower understands and agrees NOT to use the Loan proceeds for personal,
family, or household purposes. Borrower further understands that there are certain important duties imposed upon entities making
loans to consumers for personal, family, or household purposes, and certain important rights conferred upon consumers, pursuant
to federal or state law and that all of those laws, rules, and regulations concerning consumer loans do NOT apply to the Loan
or this Agreement. Borrower hereby confirms that he/she/it has consulted with his/ her/its own attorney, or has had a fair opportunity
to consult with an attorney, concerning this matter and that Borrower’s counsel has explained to Borrower and/or Borrower
understands that these rules, regulations, and laws concerning consumer loans do not apply to the Loan or this Agreement. Borrower
also understands that Lender will be unable to confirm whether Borrower’s actual use of the proceeds of the Loan conform
to the requirements of this Section. Borrower agrees that a breach by Borrower of the provisions of this Section will not affect
Lender’s right to: (i) enforce Borrower’s promise to pay all amounts owed under this Agreement, regardless of Borrower’s
actual use of the proceeds of the Loan; or (ii) to use any remedy legally available to Lender, even if that remedy would not have
been available had the Loan been made for consumer or personal purposes.

 

4.4       Authorization.
This Agreement has been duly authorized, executed, and delivered by Borrower, and is a legal, valid and binding agreement of Borrower
enforceable against Borrower in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws effecting creditors’ rights generally and by general principles of equity.

 

4.5       Financial
Statements. All financial statements and reports that may have been required and have been presented to Lender in conjunction
with the Loan, have been prepared in conformity with generally accepted accounting principles consistently applied (“GAAP”),
and fairly and accurately present the financial condition and income of Borrower, as of the date given, and none of the foregoing
contains any untrue statement of a material fact nor fails to state a material fact required in order to make such financial statements
not misleading. Since the date of the last such financial statement, there has been no adverse material change in the financial
condition or operations of Borrower.

 

4.6       Consent
and Licenses. No consent, approval or authorization of, or registration or filing with any governmental body or authority,
or any other person, firm or entity not a party hereto, is or will be required as a condition to the valid execution, delivery,
performance, or enforceability of the Loan Documents, or the transactions contemplated hereby or thereby, or to the conduct of
Borrower’s business.

 

4.7       Litigation.
There is no litigation either pending or, to the best of Borrower’s knowledge, threatened against Borrower before any court
or administrative agency, or before any arbitrator, which is reasonably likely to have a Material Adverse Effect. Furthermore,
Borrower is not in violation of any law and is not the subject of any investigation by a governmental agency that could result
in an indictment, criminal filing, or a forfeiture or seizure of any of its/his/her assets;

 

    	 	CASHFLOW	Page 4 of 28

    	 

    

 

4.8       Unencumbered
Collateral. Borrower has good and marketable title to all of the Collateral and will have good and marketable title to all
properties and assets acquired by Borrower hereafter, except for such assets as have been disposed of in the ordinary course of
business or equipment no longer used or useful in the conduct of its business. Except for the security interest granted hereunder
and the Permitted Encumbrances described in Addendum 1 attached hereto, Borrower shall be the sole and exclusive owner of the
Collateral which is and shall remain free from any and all liens, security interests, encumbrances, claims and interests and no
security agreement, financing statement, equivalent security or lien instrument or continuation statement covering any of the
Collateral is on file or of record in any public office.

 

4.9       [RESERVED].

 

4.10       Tax
Returns. Borrower has filed all tax returns that were required to be filed by it and has paid all taxes and assessments which
are payable by it, to the extent that the same have become due and payable and before they became delinquent. Borrower does not
know of any proposed material tax assessment against it or any of its/his/her properties for which adequate provision has not
been made on its/his/her books.

 

4.11       Past
Legal Proceedings. Neither Borrower nor any member, principal or shareholder of Borrower has been: (a) the subject of any
criminal conviction (excluding traffic misdemeanors); (b) a debtor or alleged debtor in any bankruptcy proceeding, insolvency
proceeding or receivership proceeding; (c) subject to liens imposed by any governmental authority; or (d) any restraining order,
decree, injunction, or judgment in any proceeding or lawsuit, except for such matters as have been fully disclosed to Lender in
writing and expressly consented to by Lender in writing.

 

4.12       Full
Disclosure. Neither this Agreement, nor any other Loan Document, nor any other statements certificates or information made
or delivered herewith or therewith contains any untrue statement of material fact or omits or will omit to state a material fact
necessary to make the statements herein or therein not misleading. To Borrower’s knowledge, there are no facts which (individually
or in the aggregate) could reasonably be expected to have a Material Adverse Effect that have not been set forth in this Agreement
or in the other Transaction Documents or any exhibit or schedule or other document delivered in connection herewith or therewith.

 

4.13       Related-Party
Transactions. Except as set forth in Section 6.2, no owner, manager, employee, officer, or director of Borrower, or any member
of his or her immediate family, or any Affiliate of such employee, officer or director, or any Affiliate of Borrower, is indebted
to Borrower, nor is Borrower indebted (or committed to make loans or extend or guarantee credit) to any of them. To Borrower’s
knowledge, none of such persons has any direct or indirect ownership interest in any firm or corporation with which Borrower is
an Affiliate or has a business relationship with any firm or corporation that competes with Borrower, except that owners, managers,
employees, officers, or directors of Borrower and members of their immediate families may own a less than one percent (1%) interest
in publicly traded companies that may compete with Borrower. No member of the immediate family or Affiliate of any manager, officer
or director of Borrower is directly or indirectly interested in any material contract with Borrower.

 

	5.	AFFIRMATIVE
    COVENANTS

 

Until
all Obligations are paid and performed in full, Borrower shall comply with the following covenants:

 

5.1       Books
And Records. Borrower shall at all times keep accurate and complete books, records, and accounts of all of Borrower’s
business activities, prepared in accordance with GAAP. Borrower shall permit the Lender, or any persons designated by the Lender,
at any reasonable time and from time to time, and without hindrance or delay, to: (a) visit and inspect Borrower’s properties
and place(s) of business; (b) inspect, audit, examine and make copies of Borrower’s books, records, correspondence, and
accounts and to make copies or extracts thereof; and (c) discuss with Borrower’s principal officers and independent accountants,
Borrower’s business, assets, liabilities, financial condition, results of operations, and business prospects. At Lender’s
request, Borrower shall deliver to Lender: (i) schedules of accounts and general intangibles; and (ii) such other information
regarding the Collateral as Lender shall request.

 

    	 	CASHFLOW	Page 5 of 28

    	 

    

 

5.2       Notices.
Borrower shall promptly notify Lender in writing of the occurrence of: (i) any Event of Default or any act or event which, with
the giving of notice or the passage of time, or both, would be such an Event of Default; (ii) any legal action, proceeding or
investigation threatened or instituted against Borrower or (iii) Borrower’s present or future inability to pay or perform
the Obligations under this Agreement. If Lender has been notified pursuant to this Section, or has knowledge of same from other
sources, then at Lender’s request, Borrower shall furnish to Lender a summary of the status of all such actions, proceedings
or investigation and provide Lender with such additional information concerning the same as Lender may from time to time request.

 

5.3       Maintain
Business. Borrower shall: (i) maintain in full force and effect all licenses, permits, insurance, authorizations, bonds, franchises,
and other rights necessary or desirable to the profitable conduct of Borrower’s business; (ii) continue in, and limit Borrower’s
operations to, the same general lines of business as are presently conducted; (iii) comply with all applicable laws, orders, regulations,
and ordinances of all governmental authorities; (iv) if a corporation, partnership or limited liability company, shall maintain
Borrower’s corporate, partnership or limited liability company existence; and (v) take such actions as are necessary to
maintain Borrower’s legal existence and good standing in each jurisdiction where the failure to do so might have a Material
Adverse Effect.

 

5.4       Maintain
Business Property And Lender’s Collateral. Borrower shall protect and preserve all assets necessary and material to
Borrower’s business, including intellectual property, maintain in good working order and condition (subject to ordinary
wear and tear) all buildings, equipment and other tangible real and personal property, and from time to time make or cause to
be made all renewals, replacements, and additions to such property necessary for the conduct of Borrower’s business. Borrower
shall take all commercially reasonable efforts to defend the right, title, and interest of Lender in and to the Collateral against
all claims and demands of all persons and entities at any time claiming the same or any interest therein. At any time Borrower
acquires any assets, tangible or intangible, real or personal, having a fair market value in excess of $25,000, in which a security
interest, deed of trust or mortgage is not already granted to or properly perfected by Lender on behalf of Lender, Borrower shall
immediately provide notice thereof to Lender and cause to be executed such documents as may be reasonably requested by Lender
in order to perfect Lender’s security interest in such Collateral.

 

5.5       [RESERVED].

 

5.6       [RESERVED].

 

5.7       [RESERVED].

 

5.8       Insurance.
Borrower shall keep all of Borrower’s properties, real and personal (including the Collateral), adequately insured at all
times with responsible insurance carriers, reasonably acceptable to Lender, against loss or damage by fire and other hazards (so
called “All Risk Coverage”). Borrower shall at all times maintain adequate insurance with coverage amounts and with
responsible insurance carriers, each acceptable to Lender, against liability on account of damage or claims of damage to persons
and properties and under all applicable workers’ compensation laws, and covering such other risks as Lender may reasonably
from time to time require. Borrower shall instruct the applicable insurance carrier to have all such insurance policies provide
at least thirty (30) days’ notice to Lender prior to cancelation or termination. Lender shall be named as loss payee, additional
insured or otherwise, as Lender’s interest may appear, as the case may be, under all such policies. Borrower represents
that all such insurance coverage is presently in full force and effect and subject to no lapses and defaults. Borrower agrees
to deliver copies of all of the foregoing insurance policies to Lender. In the event of any loss or damage to the Collateral,
Borrower shall give immediate written notice to Lender and to its insurers of such loss and damage and will promptly file proof
of loss with its insurers.

 

5.9       Payment
of Taxes and Other Obligations; Tax Returns. Borrower shall timely file all required tax returns and pay and discharge all
taxes, assessments, and governmental charges or levies imposed upon it or on income or profits or upon property belonging to it
prior to the date on which penalties attach thereto and pay and perform all lawful claims, obligations, and debts which, if unpaid,
might become a lien or charge upon any asset or property of Borrower, or where the failure to pay or perform might have a Material
Adverse Effect, provided that Borrower shall not be required to pay or perform any such tax, assessment, charge, levy, claim,
obligation, or debt for which Borrower has obtained a bond or insurance, or for which it has established a reserve in accordance
with GAAP and the payment or performance of which is being contested in good faith and by appropriate proceedings which are being
reasonably and diligently pursued.

 

    	 	CASHFLOW	Page 6 of 28

    	 

    

 

5.10       Comply
with Laws. Borrower shall perform and promptly comply, and cause all property of Borrower to be maintained, used and operated
in accordance, in each case in all material respects, with all: (i) present and future laws, ordinances, rules, regulations, orders,
and requirements (including, without limitation, zoning ordinances, building codes, and environmental laws, and the regulations
adopted pursuant thereto, and any other similar applicable federal, state, or local laws, rules, regulations, or ordinances) of
every duly constituted governmental or quasi-governmental authority or agency applicable to Borrower or any of Borrower’s
properties; (ii) similarly applicable orders, rules, and regulations of any regulatory, licensing, accrediting, insurance underwriting
or rating organization, or other body exercising similar functions, to the extent usually complied with by companies engaged in
similar businesses and owning similar properties in the same general areas in which Borrower operates; and (iii) similarly applicable
duties or obligations of any kind imposed under any certificate of occupancy or otherwise by law, covenant, conditions, agreement
or easement, public or private.

 

5.11       Further
Assurances. Borrower shall make, execute, and deliver all such additional and further acts, things, deeds, and instruments
as Lender may reasonably require to document and consummate the transactions contemplated hereby and to vest completely in and
ensure Lender its rights under this Agreement.

 

5.12       Financial
Reporting Requirements. Borrower shall deliver to Lender the following, all in form and substance reasonably satisfactory
to Lender:

 

(a)       within
thirty (30) days after the end of each calendar month, combined management-prepared balance sheets and statements of income and
retained earnings and of cash flow of Borrower as of the end of such month and for such month then ended and for the period from
the beginning of the then current fiscal year of Borrower to the end of such month, setting forth in comparative form (i) the
corresponding figures for the comparable monthly and year-to-date periods in the preceding fiscal year; and (ii) the corresponding
figures for such monthly and year-to-date period as reflected in the projected budget for the then-current fiscal year prepared
in accordance with GAAP and certified for and on behalf of Borrower by the controller or chief financial officer or other comparable
authorized officer of Borrower;

 

(b)       within
five (5) Business Days after the end of each calendar month, reports of Borrower’s inventory and accounts, including collections
and sales calculations;

 

(c)       all
annual and quarterly financial statements of Borrower. Quarterly financial statements shall be delivered to Lender no later than
forty-five (45) days after the end of each fiscal quarter of Borrower; and annual financial statements shall be delivered to Lender
no later than one hundred twenty (120) days after the fiscal year-end of Borrower; and

 

(d)       such
other information as Lender may, from time to time, reasonably request.

 

5.13       Disclosure
of Employee Benefits. Borrower shall:

 

(a)       Promptly,
and no later than ten (10) Business Days after Borrower or any of its/his/her subsidiaries know or have reason to know that an
event has occurred relating to the Borrower’s plan requirements under the Employee Retirement Income Security Act of 1974
(“ERISA”) that reasonably could be expected to result in a Material Adverse Effect, a written statement of the chief
financial officer of such Borrower or subsidiary shall be delivered to Lender describing such ERISA event and any action that
is being taking with respect thereto by Borrower or any of its/his/her subsidiaries or Affiliates, and any action taken or threatened
by the Internal Revenue Service (“IRS”), the Department of Labor, of the Pension Benefit Guaranty Corporation (“PBGC”).
Borrower and its/his/her subsidiaries shall: (i) be deemed to know all facts known by the administrator of any benefit plan of
which it is the plan sponsor; (ii) promptly, and no later than three (3) Business Days after the filing thereof with the IRS,
deliver to Lender a copy of each funding waiver request filed with respect to any benefit plan and all communications received
by Borrower or any of its/his/her subsidiaries or Affiliates; and (iii) promptly, and no later than five (5) Business Days after
receipt by Borrower or any of its/his/her subsidiaries of any information that the PBGC has an intention to terminate any benefit
plan or to have a trustee appointed to administer a benefit plan, deliver copies of each such notice to Lender.

 

    	 	CASHFLOW	Page 7 of 28

    	 

    

 

(b)       Cause
to be delivered to Lender, upon Lender’s reasonable request, each of the following: (i) a copy of each benefit plan and
retiree health plan (or, where any such plan is not in writing, a complete description thereof) (and if applicable, related trust
agreements or other funding instruments) and all amendments thereto, all material written interpretations thereof and material
written descriptions thereof that have been distributed to employees or former employees of Borrower or any of its/his/her subsidiaries;
(ii) the most recent determination letter issued by the IRS with respect to each benefit plan; (iii) for the three most recent
plan years, annual reports on Form 5500 Series required to be filed with any governmental agency for each benefit plan; (iv) all
actuarial reports prepared for the last three plan years for each benefit plan; (v) a listing of all multiemployer plans, with
the aggregate amount of the most recent annual contributions required to be made by Borrower or any of its/his/her subsidiaries
or any of their ERISA affiliates to each such plan and copies of the collective bargaining agreements requiring such contributions;
(vi) any information that has been provided to Borrower or any of its/his/her subsidiaries or any of their ERISA affiliates regarding
withdrawal liability under any multiemployer plan; and (vii) the aggregate amount of the most recent annual payments made to former
employees of Borrower or any of its/his/her subsidiaries under any retiree health plan.

 

(c)       Cause
to be delivered to Lender, upon Borrower’s and Lender’s mutual agreement that Lender’s request is reasonable,
a copy of each plan not referred to in Section 5.13(b) (or, where any such plan is not in writing, a complete description thereof)
(and if applicable, related trust agreements or other funding instruments) and all amendments thereto, all material written interpretations
thereof and material written descriptions thereof that have been distributed to employees or former employees of Borrower or any
of its/his/her subsidiaries.

 

	6.	NEGATIVE
    COVENANTS

 

Until
all Obligations have been paid and performed in full, Borrower covenants and agrees that it will NOT, without Lender’s written
consent, which consent with not be unreasonably withheld:

 

6.1       Additional
Encumbrances. Create or suffer to arise any (i) lien, security interest, other charge or encumbrance upon or with respect
to any of the Collateral except for the Security Interest and any Permitted Encumbrances, or (ii) grant or agreement to any negative
pledge that would prohibit securing the Obligations created by this Agreement and any replacement or refinancing thereof with
any properties or assets of Borrower. Borrower shall notify Lender promptly in the event that any lien or charge on any Collateral
shall be created, asserted, filed, or come into existence in violation of this Section 6.1;

 

6.2       Other
Advances. Receive any loans, incur any indebtedness for borrowed money or receive any advances or sell any accounts receivable
without Lender’s written approval except for the following: (a) indebtedness (other than the Obligations, but including
capitalized lease obligations), incurred at the time of, or within twenty (20) days after, the acquisition of any fixed assets
for the purpose of financing all or any part of the acquisition cost thereof, including any refinancing of such Purchase Money
Debt (“Purchase Money Debt”), all in the aggregate amount at any time not to exceed the “Cap on Purchase Money
Debt” specified in the Loan Chart; (b) indebtedness due to Prestige Capital (“Senior Lender”), pursuant to the
Purchase and Sales Agreement dated on or about the date hereof (the “Senior Loan Agreements”) between Senior Lender
and one or more of Borrower and all other documents evidencing, securing or relating to the indebtedness of Borrower to Senior
Lender or executed in connection therewith, and all amendments and modifications of any of the foregoing (all such documents,
including the Senior Loan Agreements, collectively, the “Senior Loan Documents”); and (c) Subordinated Debt held by
Seller pursuant to the Acquisition Transaction Documents; and (d) other Subordinated Debt held by the parties listed on Schedule
2 attached hereto (the “Subordinated Debt Holders”).

 

6.3       Disposition
of Assets. Sell, lease, assign, transfer, or otherwise dispose of any of Borrower’s rights, title, or interests in and
to the Collateral, excepting only sales of inventory or dispositions of obsolete equipment or equipment being replaced, in each
case in the ordinary course of Borrower’s business;

 

6.4       No
Guaranties or Contingent Obligations. Guaranty, assume, or otherwise become directly or contingently liable for the debt of
any other person or organization;

 

    	 	CASHFLOW	Page 8 of 28

    	 

    

 

6.5       Limitations
on Extensions of Credit. Make any loan or advance or extend any credit other than extension of trade credit in the ordinary
course of business;

 

6.6       No
Changes in Business or Name. (a) Make or permit to be made any material change in the character of Borrower’s business,
other than to grow the business; (b) change Borrower’s name from that indicated in the public record of Borrower’s
jurisdiction of organization without providing at least thirty (30) days’ prior written notice to Lender; (c) change the
location of Borrower’s headquarters, executive offices or places of operations without providing at least thirty (30) days’
prior written notice to Lender; or (d) change Borrower’s structure without the written consent of Lender;

 

6.7       No
Amendments/Modifications to Constituent Documents. Permit the amendment, modification, restatement, or other changes to the
organizational documents of Borrower including, if applicable, the articles of incorporation or organization, by-laws, or operating
partnership agreement, unless Borrower sends Lender the proposed changes to organizational documents no less than thirty (30)
days prior to the effective date thereto;

 

6.8       No
Prepayments of Debt. Prepay any indebtedness for borrowed money to any person or entity other than Lender or Senior Lender;

 

6.9       Restricted
Payments. (a) Declare or pay or make any form of dividend or distribution other than dividends or distributions to equity
holders to meet their tax obligations on income realized by such holders attributable solely to such holders’ investment
in Borrower in a timely manner; (b) make any payments of any indebtedness subordinated to the Obligations due Lender or otherwise
redeem, repurchase or retire any instrument evidencing such amount, or reduce or terminate any commitment in respect of such indebtedness,
in each case except pursuant to the provisions of a subordination agreement acceptable to Lender; or (c) redeem, repurchase, or
retire any capital stock or other equity;

 

6.10       [RESERVED];

 

6.11       [RESERVED];

 

6.12       Transactions
with Affiliates. (a) Make any loan, advance, extension of credit or non-compensation related payment to any Affiliate of Borrower;
or (b) enter into any other transaction, including, without limitation, the purchase, sale, lease, or exchange of property, or
the rendering or any service, to or with any Affiliate of Borrower, the terms of which are less favorable to such person than
the terms such person would have been able to obtain in a similar transaction between such person and an unrelated third party
obtained through arms’ length dealings; provided, however, that Borrower may in any event pay reasonable compensation to
any such employee or officer in the ordinary course of Borrower’s business consistent and commensurate with industry custom
and practice for the services provided by such person and may enter into any transaction with any Affiliates so long as all such
transactions, either singly or in the aggregate, have a value of no more than $10,000;

 

6.13       Deposit
Accounts. (a) Close any deposit account of Borrower, including the Borrower’s Account; or (b) open any deposit account
of Borrower without providing Lender with a deposit account control agreement in form and substance satisfactory to Lender;

 

6.14       Limitations
on Investments. Purchase, own, invest in, or otherwise acquire, directly or indirectly, any equity securities, any interests
in any partnership or joint venture (including the creation or capitalization of any subsidiary), evidence of indebtedness or
other obligation or security, substantially all or a portion of the business or assets of any other person or entity, or any other
investment or interest whatsoever in any other person or entity, or make or permit to exist, directly or indirectly, any loans,
advances or extensions of credit to, or any investment in cash or by delivery of property in, any person or entity other than:
(i) investments previously described in writing to Lender, including without limitation the purchase of equity interests in iTech
and Smart Works; (ii) the extension of trade credit in the ordinary course of business and consistent with past practices; (iii)
deposits with banks or other financial institutions;

 

    	 	CASHFLOW	Page 9 of 28

    	 

    

 

6.15       No
Mergers; Equity Issuances. Merge, consolidate, or enter into any similar combination with any other entity or liquidate, windup,
or dissolve itself (or suffer any liquidation or dissolution);

 

6.16       [RESERVED];
or

 

6.17       No
Transactions Prohibited by ERISA; Unfunded Liability. Directly or indirectly

 

(a)       engage
in any prohibited transaction which is reasonably likely to result in a civil penalty or excise tax described in sections 406
of ERISA or 4975 of the Internal Revenue Code for which a statutory or class exemption is not available or a private exemption
has not been previously obtained from the Department of Labor;

 

(b)       permit
to exist with respect to any benefit plan any accumulated funding deficiency (as defined in sections 302 of ERISA and 412 of the
Internal Revenue Code, whether or not waived;

 

(c)       fail
to pay timely required contributions or annual installments due with respect to any waived funding deficiency to any benefit plan;

 

(d)       terminate
any benefit plan where such event would result in any liability of Borrower, any subsidiary of Borrower, or any of their ERISA
affiliates under Title IV of ERISA which was not paid in connection with such termination;

 

(e)       fail
to make any required contribution or payment to any multiemployer plan;

 

(f)       fail
to pay any required installment or any other payment required under section 412 of the Internal Revenue Code on or before the
due date for such installment or other payment;

 

(g)       amend
a plan resulting in an increase in current liability for the plan year such that Borrower, any subsidiary of Borrower, or any
of their ERISA affiliates is required to provide security to such plan under section 401(a)(29) of the Internal Revenue Code;
or

 

(h)       withdraw
from any multiemployer plan where such withdrawal is reasonably likely to result in any liability of such entity under Title IV
of ERISA;

 

any
of which, individually or in the aggregate, would reasonably be expected to result in, or have, a Material Adverse Effect.

 

	7.	EVENTS
    OF DEFAULT

 

The
occurrence of one or more of the following events shall constitute an “Event of Default” under this Agreement. Unless
expressly provided for in this Section 7, Lender is under no duty to provide Borrower or any other person with any notice for
an event to become an Event of Default:

 

7.1       Borrower
shall fail to make any payment of sums due under this Agreement, including any amounts specified in the Loan Chart, within three
(3) days of the applicable due date;

 

7.2       Borrower
shall breach any covenant or other obligation under Section 6 or any other Loan Document;

 

7.3       Borrower
shall breach any covenant, condition, or other obligation contained in this Agreement (other than covenants and obligations described
in another subsection of this Section 7), which breach is not cured within fifteen (15) calendar days after the earlier of written
notice from Lender or the date on which Borrower had actual knowledge of such breach;

 

7.4       Any
financial statement, representation, warranty or certificate made or furnished by or on behalf of Borrower or any guarantor of
the Obligations in connection with this Agreement or any other Loan Document shall be materially false or misleading (including
by omission) when made or reaffirmed;

 

    	 	CASHFLOW	Page 10 of 28

    	 

    

 

7.5       Borrower
or any guarantor of the Obligations shall become insolvent, admit its/his/her insolvency, or shall be unable to pay its/his/her
debts as they mature;

 

7.6       One
or more judgments, orders, or decrees for the payment of money, either individually or in the aggregate in excess of $50,000,
is entered by a court of competent jurisdiction against Borrower or any guarantor of the Obligations and such judgment, order,
or decree remains unpaid, undischarged and unbonded;

 

7.7       (a)
Borrower or any guarantor of the Obligations shall make an assignment for the benefit of its/his/her creditors, file a petition
in bankruptcy, be the subject of an involuntary bankruptcy petition or be the subject of a pending application, motion, or petition
for the appointment of a receiver if such application, motion, or petition is not dismissed with thirty (30) days of its filing,
or if a receiver is appointed; or (b) Borrower or any such guarantor by any act or omission shall indicate its/his/her consent
to, approval of, or acquiescence in, any application or proceeding or order for relief or the appointment of a custodian, receiver,
or any trustee for any substantial part of any of its/his/her properties;

 

7.8       Borrower
or any guarantor of the Obligations shall have received any order, or there shall have been imposed upon it any limitation, of
any kind, restricting its/his/her right to do business and/or its/his/her right to free and unencumbered use and operation of
any of the Collateral, by any court, administrative body, or other regulatory or judicial authority purporting to have jurisdiction
over the business of Borrower or any guarantor of the Obligations or the ownership and/or operation of such Collateral;

 

7.9       The
occurrence of any uninsured loss, theft, damage, or destruction to any material assets (or to a material portion of all assets)
of Borrower or any guarantor of the Obligations in excess of $100,000;

 

7.10       Any
guarantor of the Obligations shall repudiate, purport to revoke, or fail to perform such guarantor’s obligations under the
applicable guaranty or support agreement in favor of Lender;

 

7.11       Any
federal, state, or local governmental body, instrumentality or agency shall condemn, seize or otherwise appropriate, or take custody
and control of all or substantially all of the properties of Borrower or any guarantor of the Obligations, or file a lien or levy
an assessment in respect of all, or substantially all, of the properties of Borrower or any guarantor of the Obligations;

 

7.12       If
Borrower or any guarantor of the Obligations shall dissolve or liquidate, or be dissolved or liquidated, or cease legally to exist,
or merge or consolidate, or be merged or consolidated with or into any corporation or entity;

 

7.13       [INTENTIONALLY
OMITTED];

 

7.14       Default
shall occur with respect to an indebtedness for borrowed money (other than the Obligations) of Borrower or any of its subsidiaries
in an outstanding principal amount exceeding $100,000 and such default shall continue for more than the period of grace, if any,
therein with respect thereof, if the effect thereof (with or without the giving of notice or further lapse of time or both) is
to accelerate, or permit the holder of any such indebtedness to accelerate, the maturity any such indebtedness, or any such indebtedness
shall be declared due and payable or be required to be paid (other than by a regularly scheduled required prepayment) prior to
the stated maturity thereof;

 

7.15(a)Principal
(as named in the Loan Chart) shall no longer own, of record and beneficially, at least twenty-five percent (25%) of the equity
interests in Administrative Borrower; or (b) Administrative Borrower shall no longer own, of record and beneficially, at least
ninety percent (90%) of each of iTech and Smart Works;

 

7.16       Principal,
Richard Jackman or Tim Rhaman shall respectively cease serving as the Chief Executive Officer, Chief Revenue Officer or Chief
Financial Officer of Administrative Borrower, and any such officers are not replaced, within ninety (90) days of such cessation,
by officers acceptable to Lender,

 

7.17       There
shall have occurred a Material Adverse Effect.

 

    	 	CASHFLOW	Page 11 of 28

    	 

    

 

	8.	REMEDIES
    UPON DEFAULT

 

At
any time after any Event of Default, Lender may, without presentment, demand, protest, or further notice of any kind (all of which
are hereby expressly waived, and in addition to any other remedies made available to Lender in any other Loan Document, at law
or in equity) take any one or more of the following actions:

 

8.1       Declare
all Obligations, including the entire remaining Total Payback Amount, together with all loan costs and expenses and attorneys’
fees, to be immediately due and payable. Lender shall be entitled to immediately enforce payment of all Obligations by any means
permitted by law or in equity;

 

8.2       Notify
customers, account debtors or lessees of Borrower that Lender has a security interest in the accounts, rights to payment, equipment,
chattel paper and general intangibles of Borrower and may collect them directly; Lender may settle or adjust disputes and claims
directly with account debtors or payment processor companies or insurance companies for amounts and upon terms that Lender considers
advisable, and in such cases, Lender will credit the Obligations under this Agreement with only the net amounts received by Lender,
after deducting all reasonable expenses incurred or expended in connection therewith;

 

8.3       Make
such payments and do such acts as Lender considers necessary or reasonable to protect its security interest and Collateral. Borrower
agrees to assemble the Collateral if Lender so requires, and to make the Collateral available to Lender as Lender may designate
at a location which is reasonably convenient to Borrower and Lender. Borrower authorizes Lender to enter the premises where the
Collateral is located, take and maintain possession of the Collateral, or any part of it, and to pay, purchase, contest or compromise
any encumbrance, charge or lien which in the opinion of Lender appears to be prior or superior to the Security Interest (other
than the Permitted Encumbrances) and to pay all expenses incurred in connection therewith. With respect to any of Borrower’s
owned or leased premises, Borrower hereby grants Lender a license to enter into possession of such premises and to occupy the
same, without charge, in order to exercise any of Lender’s rights or remedies;

 

8.4       Ship,
reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell (in the manner provided for
herein) the Collateral. Lender is hereby granted a license or other right to use, without charge, Borrower’s labels, patents,
copyrights, rights of use of any name, trade secrets, trade names, trademarks, and advertising matter, or any property of a similar
nature, as it pertains to the Collateral, in completing Lender’s production, sale or general administration of the Collateral
and Borrower’s rights under all licenses and franchise agreements shall inure to Lender’s benefit;

 

8.5       Sell
the Collateral at either a public or private sale, or both, by way of one or more contracts or transactions, for cash or on terms,
in such manner and at such places (including Borrower’s premises) as is commercially reasonable in the opinion of Lender.
It is not necessary that the Collateral be present at any such sale. Lender shall not be obligated to make any sale of the Collateral
regardless of notice of sale having been given. Lender may adjourn any public or private sale from time to time by announcement
at the time and place fixed therefor, and such sale may, without further notice, be made at the time and place to which it was
so adjourned;

 

8.6       Lender
shall give notice of the disposition of the Collateral as follows:

 

(a)       Lender
shall give Borrower and each holder of a security interest in the Collateral a notice in writing of the time and place of public
sale, or, if the sale is a private sale or some other disposition other than a public sale is to be made of the Collateral, the
time on or after which the private sale or other disposition is to be made;

 

(b)       The
notice shall be personally delivered or mailed, postage prepaid, to Borrower as provided in this Agreement, at least ten (10)
calendar days before the date fixed for the sale, or at least ten (10) calendar days before the date on or after which the private
sale or other disposition is to be made, unless the Collateral is perishable or threatens to decline speedily in value;

 

8.7       Borrower
agrees that Lender may obtain the appointment of a receiver or keeper to take possession of all or any portion of the Collateral
or to operate same;

 

    	 	CASHFLOW	Page 12 of 28

    	 

    

 

8.8       Any
deficiency that exists after disposition of the Collateral as provided above will be paid immediately by Borrower. Any excess
will be returned immediately, subject to the rights of third parties, and/or as provided by law, to Borrower by Lender;

 

8.9       All
payments received by Borrower in respect of the Collateral shall be forthwith paid over to Lender in the same form as so received
(with any necessary endorsement), and may be held or applied by Lender to the Obligations in such order as Lender may determine;

 

8.10       File
suit for any sums owing or for damages; and

 

8.11       Exercise
any other remedy or right provided in law or in equity or permitted under this Agreement or by the California Uniform Commercial
Code.

 

	9.	REMEDIES
    CUMULATIVE

 

Any
and all remedies conferred upon Lender shall be deemed cumulative with, and non-exclusive of any other remedy conferred hereby
or by law and/or equity. Lender in the exercise of any one remedy shall not be precluded from the exercise of any other. Lender
may exercise any and all rights and remedies available to it concurrently or independently, in such order, as frequently, and
at such time or times as Lender may, in its sole discretion, deem expedient.

 

	10.	MISCELLANEOUS

 

10.1       Power
of Attorney. Borrower hereby irrevocably appoints Lender as its or his true and lawful attorney, as the case may be, with
full power of substitution, in Lender’s name or in its or his name or otherwise, for Lender’s sole use and benefit,
but at Borrower’s cost and expense, without notice to Borrower or any other person, to exercise at any time and from time
to time to:

 

(a)       demand,
sue for, collect, receive, and give acquittance for any and all monies due or to become due upon or by virtue thereof;

 

(b)       receive,
take, endorse, assign, and deliver any and all checks, notes, drafts, documents, negotiable or non-negotiable instruments, or
chattel paper in connection therewith;

 

(c)       settle,
compromise, compound, prosecute or defend any action or proceeding, including, without limitation, a foreclosure action, with
respect thereto;

 

(d)       extend
or modify terms of payment or make any allowance or other adjustment with respect thereto; or

 

(e)       notify
account debtors of the security interest granted hereby and instruct such account debtors that payment of their respective accounts
is to be made directly to Lender and take control of any and all such payments or other proceeds of such accounts.

 

10.2       Attorneys’
Fees and Costs. Borrower shall pay on demand all of Lender’s reasonable attorneys’ fees and costs incurred by
Lender in: (a) enforcing this Agreement or any other Loan Documents and Lender’s rights in its Collateral; and (b) the collection
of any amounts due under this Agreement or any other Loan Documents, whether or not suit is brought. Further, Lender shall be
entitled to all attorneys’ fees and costs incurred by Lender in connection with any Bankruptcy proceeding of Borrower, including
any and all reasonable attorneys’ fees and costs incurred to preserve, protect, monitor, or realize upon the Obligations
and any security for such Obligations. The costs incurred by Lender include but are not limited to appraisal fees, filing fees,
audit and inspection fees, and all other reasonable out-of-pocket costs and expenses incurred by Lender.

 

    	 	CASHFLOW	Page 13 of 28

    	 

    

 

10.3       Waivers.

 

(a)       Borrower
hereby waives presentment, demand, notice, protest, notice of acceptance of this Agreement, notice of loans made, credit extended,
collateral received or delivered or other action taken in reliance herein, and all other demands and notices of any kind or description.
With respect to the Obligations and the Collateral, Borrower assents to any extension or postponement of the time of payment or
any other indulgence, to any substitution, exchange or release of Collateral, to the addition or release of any person or entity
primarily or secondarily liable therefor, to the acceptance of partial payments thereon and the settlement, compromise, or adjustment
of any thereof, all in such manner and at such time or times as Lender may deem advisable in its sole and absolute discretion.
Lender shall have no duty as to the collection or protection of the Collateral or any income therefrom, as to the preservation
of rights against prior parties, or as to the preservation of any rights pertaining to the Collateral beyond the safe custody
thereof. Lender may exercise its rights with respect to the Collateral without resorting or regard to any other collateral or
sources of payment for liability;

 

(b)       Neither
any failure nor any delay on the part of Lender in exercising any right, power, or privilege hereunder or under this Agreement
or any other Loan Document shall operate as a waiver thereof, nor shall a single or partial exercise thereof preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. Lender shall not be deemed to have waived
any of its rights with respect to the Obligations or Collateral hereunder or under any other written document, unless such waiver
is in writing and signed by Lender.

 

10.4       Electronic
Communications. Borrower agrees that Lender may communicate with Borrower electronically by email.

 

10.5       No
Third-Party Beneficiary. This Agreement is made solely between Borrower and Lender and no other person shall have any right
of action hereunder and the parties expressly agree that no person shall be a third-party beneficiary to this Agreement.

 

10.6       Indemnity.
Borrower agrees to indemnify, defend, and hold harmless Lender, its employees, members, directors, managers, officers, or agents
from and against any loss, liability, damage, penalty or expense (including attorneys’ fees, expert witness fees, and cost
of defense) they may suffer or incur as a result of: (a) any failure by Borrower or Principal or any employee, agent or Affiliate
of Borrower to comply with the terms of this Agreement, any of the other Loan Documents, or any other legal obligation to Lender;
(b) any warranty or representation made by Borrower or Principal being false or misleading; (c) any representation or warranty
made by Borrower or Principal, or any employee or agent of Borrower to any third person; (d) negligence of Borrower or its agents
or employee or Principal; or (e) any alleged or actual violations by Borrower or its subcontractors, employees or agents of any
governmental laws, regulations or rules.

 

10.7       Assignment.
This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective executors, administrators,
heirs, successors, and assigns, provided, however, that neither this Agreement nor any rights or Obligations hereunder shall be
assignable by Borrower without first obtaining the express written consent of Lender. Lender has no obligation to consent to the
Borrower assigning this Agreement. Any purported assignment made in contravention of the forgoing consent shall be void. Lender
may assign any part of or all of the Loan and its rights and Obligations hereunder at any time in its sole and absolute discretion
without notifying or disclosing to Borrower the assignment of this Agreement. Lender may sell participations in all or any portion
of the Loans to such other party or parties as Lender shall select, all without notice or disclosure to Borrower.

 

10.8       Maximum
Interest. If Lender contracts for, charges, or receives any consideration that constitutes interest in excess of the highest
lawful rate that is permissible under the law applicable to this Agreement, then any such excess shall be canceled automatically
and, if previously paid, shall at such Lender’s option be applied to the outstanding amount of the Loan made hereunder or
be refunded to Borrower. In determining whether the interest contracted for, charged, or received by Lender exceeds the highest
lawful rate, Lender may, to the extent permitted by applicable law: (a) characterize any payment that is not principal as an expense,
fee, or premium rather than interest; (b) exclude voluntary prepayments and the effects thereof; and (c) amortize, prorate, allocate,
and spread in equal or unequal parts the total amount of interest, throughout the contemplated term of the Loan hereunder.

 

    	 	CASHFLOW	Page 14 of 28

    	 

    

 

10.9       Time
Is of the Essence. The Parties hereto expressly acknowledge and agree that time is of the essence and that all deadlines and
time periods provided for under this Agreement are ABSOLUTE AND FINAL.

 

10.10       Notices.
Any notices required or permitted to be given pursuant to this Agreement shall be in writing and may be given by personal delivery,
email, facsimile, first class mail via the United States Postal Service, postage prepaid, or by any overnight courier by sending
said notice to Borrower at the address set forth its signature below or to Lender at the following address:

 

Super G Capital, LLC

23 Corporate Plaza, Suite 100

Newport Beach, CA 92660

 

If
either party desires to change the address or email and fax numbers to which notices are to be sent, it shall do so in writing
and deliver the same to the other party in accordance with the notice provisions set forth above. Any notice given by any party
under this Agreement shall be effective upon a party’s receipt of the notice or if mailed, upon the earlier of a party’s
receipt of the notice and the third (3rd) Business Day after the mailing of the notice.

 

10.11       Modifications.
This Agreement may not be modified, amended, waived, extended, changed, discharged, or terminated orally or by any act or failure
to act on the part of Borrower or Lender, but only by an agreement in writing signed by the party against whom enforcement of
any modification, amendment, waiver, extension, change, discharge, or termination is sought.

 

10.12       Severability.
If any term or provision of this Agreement or the application thereof to any circumstance, shall be invalid, illegal, or unenforceable
to any extent, such term or provision shall not invalidate or render unenforceable any other term or provision of this Agreement
or the application of such term or provision to any other circumstance then to the extent permitted by law, Borrower and Lender
hereto hereby waive any provision of law that renders any term or provision hereof invalid or unenforceable in any respect.

 

10.13       Definitions.
As used herein, (a) “Acquisition Transaction” means the acquisition by Administrative Borrower of 100% of the outstanding
equity in ITech and substantially all of the membership interests in Smart Works; (b) “Acquisition Transaction Documents”
means, collectively, the Stock Purchase Agreement and all other agreements, documents and instruments executed and delivered in
connection with the Stock Purchase Agreement, as each may be amended, modified, restated or supplemented from time to time; (c)
an “Affiliate” of a person or entity means (i) any other person or entity which, directly or indirectly, controls
or is controlled by or is under common control with that entity or (ii) any officer, employee, member, shareholder or director
of Borrower; an entity shall be deemed to be “controlled by” any other person or entity if such person or entity possesses,
directly or indirectly, power to vote ten percent (10%) or more of the securities (on a fully diluted basis) having ordinary voting
power for the election of directors or managers or power to direct or cause the direction of the management and policies of such
entity whether by contract or otherwise; (d) “Business Day” means any calendar day other than Saturdays, Sundays and
official Federal Holidays; (e) “Loan Documents” means, collectively, this Agreement, the other documents described
in Addendum 2, and all other documents evidencing, securing or relating to the Obligations or executed in connection herewith,
and all amendments and modifications of any of the foregoing; (f) “Material Adverse Effect” means with respect to
any event, act, condition or occurrence of whatever nature (including any adverse determination in any litigation, arbitration,
or governmental investigation or proceeding), whether singly or in conjunction with any other event or events, act or acts, condition
or conditions, occurrence or occurrences, whether or not related, a material adverse change in, or a material adverse effect upon,
any of (i) the condition (financial or otherwise), operations, business, properties or prospects of Borrower or any guarantor
of the Obligations, (ii) the rights and remedies of Lender under any Loan Document, or the ability of Borrower or any guarantor
of the Obligations to perform any of his/her/its obligations under any Loan Document to which he/she/it is a party, (iii) the
legality, validity or enforceability of any Loan Document, or (iv) the existence, perfection or priority of any part of the Lender’s
Lien or the value of any material Collateral; (g) “Seller” means Kishore Khandavalli; (h) “Stock Purchase Agreement”
means that certain Stock Purchase Agreement, dated as of June 30, 2017, by and among Seller, Administrative Borrower and iTech
(together with any and all amendments, supplements or other modifications thereto); and (h) “Subordinated Debt” means
debt incurred by Borrower that is subordinated to the debt owing by Borrower to Lender on terms acceptable to Lender.

 

    	 	CASHFLOW	Page 15 of 28

    	 

    

 

	11.	GOVERNING
    LAW, FORUM SELECTION, AND CONSENT TO JURISDICTION

 

The
Loan Documents shall be governed by and construed in accordance with the laws of the State of California without reference to
its choice of law provisions. Lender and Borrower agree that: (a) all actions or proceedings arising out of or related to the
Loan Documents; (b) any written agreements between or related to Lender and Borrower; and (c) all other disputes, regardless of
whether arising out of contract or solely a tort, shall be tried and litigated exclusively in the state and federal courts located
in the Orange County, California in a city to be designated by Lender, or in the City of Los Angeles, State of California. This
choice of venue is intended to be mandatory and not permissive, thereby precluding the possibility of litigation between the Lender
and Borrower in any jurisdiction other than that specified herein. Borrower hereby waives any right it may have to assert the
doctrine of forum non conveniens (or any similar doctrine) or to otherwise raise any objection to venue with respect to
any proceeding arising out of or related to this Agreement or any other written agreements between Lender and Borrower.

 

Lender
and/or Borrower irrevocably and unconditionally consent to personal jurisdiction in California and venue in in any action in Orange
County, California, in a city to be designated by Lender, or in the City of Los Angeles, State of California. Borrower further
stipulates that the state and federal courts located in Orange County, California or the City of Los Angeles, State of California
shall have in personam jurisdiction and venue over Borrower for the purpose of litigating any dispute, controversy, or
proceeding arising out of or related to: (i) this Agreement; and (ii) all other written agreements between the Borrower and Lender,
including, without limitation, petitions to compel the judicial reference and to enforce the statement of decision by the referee.

 

Any
action filed by Borrower or Lender shall be filed in the Los Angeles County Superior Court, Central Judicial District or the Federal
District Court for the Central District of California located in the City of Los Angeles, or the Federal District Court for the
Central District of California located in Orange County, California. The judicial reference proceedings shall be conducted in
the City of Los Angeles, California or in Orange County, California, in a city to be designated by Lender.

 

	12.	JUDICIAL
    REFERENCE

 

12.1       At
the request of either Lender or Borrower, any controversy or claim between or amongst Lender and Borrower, regardless of whether
the dispute or controversy arises under or is related to this Agreement, shall be determined by a reference in accordance
with California Code of Civil Procedure sections 638, et seq. Judgment upon the award rendered by such referee shall be entered
in the court in which such proceeding was commenced in accordance with California Code of Civil Procedure sections 644 and 645.

 

12.2       Selection
or Appointment of Referee. When Lender and Borrower are involved in any dispute or controversy (the “Reference Parties”)
they shall jointly select a single neutral referee who shall be a retired state or federal judge. In the event the Reference Parties
cannot agree upon a referee, a single neutral referee shall be appointed by the court in accordance with the procedure set forth
in Code of Civil Procedure section 640(b).

 

12.3       Conduct
of Reference. The judicial reference shall be conducted pursuant to California law. The referee shall determine all issues
relating to the applicability, interpretation, legality, or enforceability of all agreements. The referee shall report a statement
of decision to the court. The Reference Parties shall equally bear the fees and expenses of the referee. The prevailing party
shall be entitled to recover the fees and expenses that it/he/she paid to the referee and such fees and expenses shall be awarded
in the statement of decision.

 

    	 	CASHFLOW	Page 16 of 28

    	 

    

 

12.4       Reference
Constitutes a Waiver of the Right to a Jury Trial. Borrower and Lender understand and acknowledge that by agreeing to judicial
reference, Borrower and Lender each are hereby knowingly, voluntarily, and intentionally waiving any right (whether arising under
the Constitution of the United States, the State of California, or of any other state, or under any foreign jurisdiction, under
any statutes regarding or rules of civil procedure applicable in any state or federal or foreign legal proceeding, under common
law, or otherwise) to demand or have a trial by jury of any claim, demand, action, or cause of action arising under, relating,
or appertaining to: (i) this Agreement; (ii) any written agreements between Lender and Borrower; (iii) any disputes or controversies
in any way connected with or related or incidental to the discussions, dealings, or actions between Lender and Borrower (whether
oral or written); and (iv) any claims now existing or hereafter arising between Lender and Borrower, whether sounding in contract
or tort or otherwise.

 

Each
of the Reference Parties hereby agrees and consents that any such claim, demand, action, or cause of action shall be decided by
the referee without a jury, and that any of the Reference Parties may file an original counterpart or a copy of this Agreement
with any court as written evidence of its waiver of right to trial by jury. The Reference Parties acknowledge and agree that they
have received full and sufficient consideration for this provision (and each other provision of each other related document to
which they are a party) and that this provision is a material inducement for the Lender in accepting this Agreement. By waiving
a jury trial, the Reference Parties intend claims and disputes to be resolved by the referee and/or judge acting without a jury
in order to avoid the delays, expense, and risk of mistaken interpretations which each Party acknowledges to be greater with jury
trials than with nonjury trials.

 

12.5       Provisional
Remedies, Self-Help And Foreclosure. No provision of this Agreement or written agreements between the Lender and Borrower,
will limit the right of Lender to: (a) foreclose against any real property collateral by the exercise of a power of sale under
a deed of trust, mortgage, or other security agreement or instrument, or applicable law; (b) exercise any rights or remedies as
a secured party against any personal property collateral pursuant to the terms of a security agreement or pledge agreement or
applicable law; (c) exercise self-help remedies such as setoff; or (d) obtain provisional or ancillary remedies such as injunctive
relief, writs of attachment, writs of possession, or the appointment of a receiver from a court having jurisdiction before, during,
or after the pendency of any referral. The institution and maintenance of an action for judicial relief or pursuit of provisional
or ancillary remedies or exercise of self-help remedies will not constitute a waiver of the right of any party, including the
plaintiff, to submit any dispute to judicial reference.

 

	13.	NO
    FIDUCIARY RELATIONSHIP

 

Borrower
hereby acknowledges that Lender does not have any fiduciary relationship to Borrower, and the relationship between Lender, on
the one hand, and Borrower, on the other hand, is solely that of creditor and debtor and no joint venture exists between Lender
and Borrower.

 

	14.	RULES
    OF CONSTRUCTION

 

Lender
and Borrower have participated in the preparation and/or review of this Agreement, and this Agreement shall be deemed the result
of the joint efforts of Lender and Borrower. This Agreement has been accepted and approved as to its final form by Borrower and
upon the advice of its counsel, but shall not be deemed accepted and approved by Lender until duly executed in the State of California
by its duly authorized officer. Borrower acknowledges that the Loan is being made in the State of California and that all payments
of the Obligations are not accepted until received by Lender in the State of California. Borrower further acknowledges that if
Borrower elected not to consult with an attorney before signing this Agreement, Borrower had ample to time to hire an attorney
and obtain a review this Agreement by counsel before signing this Agreement. Accordingly, any uncertainty or ambiguity existing
in this Agreement shall not be interpreted against either Lender or Borrower as a result of the manner of the preparation and
presentation of this Agreement. Borrower and Lender agree that any statute or rule of construction providing that ambiguities
are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement and are hereby waived.

 

	15.	COUNTERPARTS

 

This
Agreement and the other Loan Documents may be executed in one or more counterparts, each of which shall be deemed to be an original,
and such counterparts shall together constitute one and the same instrument. The signatures to this Agreement may be evidenced
by facsimile or scanned email copies reflecting the party’s signature hereto, and any such facsimile copy or scanned email
copies shall be sufficient to evidence the signature of such party as if it were an original signature. Any failure by such Borrower
or Lender to deliver original counterparts shall not affect the validity or the delivery of this Agreement or any documents in
writing between Lender and Borrower.

 

    	 	CASHFLOW	Page 17 of 28

    	 

    

 

	16.	ENTIRE
    AGREEMENT

 

This
Agreement constitutes the entire agreement between the Lender and Borrower with respect to the subject matter hereof, and supersedes
all other agreements, oral or written, between Lender and Borrower with respect to the subject matter. Borrower acknowledges and
represents that it/he/she has read this Agreement and the other Loan Documents carefully and that there have been no oral or written
statements made to it/he/she by Lender or any other party that contradicts, varies, or would change the meaning of any statements,
promises, or agreements set forth in this Agreement. Borrower acknowledges that a failure to review this Agreement or any of the
other Loan Documents before signing them precludes any claim that any such Loan Documents do not represent the true and accurate
agreement of the Lender and Borrower. No claim of waiver, modification, consent or acquiescence with respect to any provision
of this Agreement shall be made against any party herein, except upon the basis of a written instrument executed by or on behalf
of such party, which written instrument must expressly reference this Agreement.

 

[SIGNATURES
ON FOLLOWING PAGE]

 

    	 	CASHFLOW	Page 18 of 28

    	 

    

 

	BORROWER:	LENDER:
	SHAREDLABS,
    INC., a Delaware corporation	SUPER
    G CAPITAL, LLC
	 	 	 	 
	By:	    
    	By:	 
	Name:	     	 	Marc
    Cole,
	Title:	 	 	Chief
    Financial Officer
	 	 	 	 
	Address:	118
    W. Adams, Suite 200	 	 
	 	Jacksonville,
    FL 32202	 	 
	 	 	 	 
	ITECH
    US, INC., a Virginia corporation	 	 
	 	 	 	 
	By:	 	 	 
	Name:	 	 	 
	Title:	 	 	 
	 	 	 	 
	Address:	20
    Kimball Avenue, #303n	 	 
	 	South
    Burlington, VT 05403	 	 
	 	 	 	 
	SMART
    WORKS, LLC, a New Jersey limited liability company	 	 
	 	 	 	 
	By:	 	 	 
	Name:	 	 	 
	Title:	 

                                                                                
	 	 
	 	 	 	 
	Address:	55
    Carter Dr. #107, 	 	 
	 	Edison,
    NJ 08817	 	 

 

[SIGNATURE
PAGE TO BUSINESS LOAN AND SECURITY AGREEMENT]

 

    	 	CASHFLOW	Page 19 of 28

    	 

    

 

This
Authorization Agreement for Direct Deposit (ACH Credit) and Direct Payments (ACH Debits) (this “Authorization”) is
part of (and is fully incorporated herein by reference into) the Business Loan and Security Agreement above (the “Loan Agreement”).

 

DISBURSEMENT
OF LOAN PROCEEDS. By signing below, Borrower authorizes Lender to disburse the Loan proceeds less the amount of any applicable
fees and/or debit the account for any fees related to the Loan Agreement upon Loan approval by initiating an ACH credit to the
checking account indicated below (or a substitute checking account Borrower later identifies and is acceptable to Lender) (hereinafter
referred to as the “Borrower Account”) in the disbursed amount set forth in the Loan Agreement. This Authorization
is to remain in full force and effect until Lender has received written notification from Borrower of its termination in such
time and in such manner as to afford Lender and Borrower’s depository bank a reasonable opportunity to act on it.

 

By
signing below, Borrower agrees and authorizes Lender to collect payments required under the terms of this Agreement by initiating
ACH debit entries to Borrower’s Account in the amounts and on the dates provided in the payment schedule set forth in the
Loan Agreement. Borrower authorizes Lender to increase the amount of any scheduled ACH debit entry by the amount of any previously
scheduled payment(s) that was not paid as provided in the payment schedule and any unpaid returned payment charges and/or late
fees. This Authorization is to remain in full force and effect until Lender has received written notification from Borrower of
its termination in such time and in such manner as to afford Lender and Borrower’s depository bank a reasonable opportunity
to act on it. Lender may suspend or terminate Borrower’s enrollment in the automatic payment plan effected by this Authorization
immediately if Borrower fails to keep Borrower’s Account in good standing or if there are insufficient funds in Borrower’s
Account to process any payment. If Borrower revokes this Authorization, Borrower still will be responsible for making timely payments
pursuant to the alternative payment methods described in the Loan Agreement.

 

BUSINESS
PURPOSE ACCOUNT. By signing below, Borrower attests that Borrower’s Account was established for business purposes and not
for personal, family, or household purposes.

 

ACCOUNT
CHANGES. Borrower agrees to notify Lender promptly if there are any changes to the account and routing numbers of the Borrower
Account.

 

MISCELLANEOUS.
Lender is not responsible for any fees charged by Borrower’s bank as the result of credits or debits initiated under this
Authorization. The origination of ACH transactions to or from Borrower’s Account must comply with all provisions of applicable
law.

  

	BORROWER:	 
	SHAREDLABS,
    INC.	 
	 	 	 
	By:	 	 
	Name:	Jason
    M. Cory	 
	Title:	President
    & CEO	 
	 	 	 
	Address:

        

        
	118
                                         W. Adams, Suite 200

                                                                              Jacksonville,
                                         FL 32202
	 

 

 

    	 	CASHFLOW	Page 20 of 28

    	 

    

 

SCHEDULE
1

 

BORROWER
AFFILIATES

 

ITECH
US, INC., a Virginia corporation (“iTech”)

 

SmartWorks,
LLC, a New Jersey limited liability company (“Smart Works”)

 

    	 	CASHFLOW	Page 21 of 28

    	 

    

 

schedule
2

 

subordinated
debt HOLDERS

 

Kishore
Khandavalli.

 

    	 	CASHFLOW	Page 22 of 28

    	 

    

 

ADDENDUM
1

 

PERMITTED
ENCUMBRANCES

 

Each
of the following shall be considered “Permitted Encumbrances”:

 

(a)       liens
arising under this Agreement and the other Loan Documents;

 

(b)       liens
for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in
good faith and for which Borrower maintains adequate reserves on its books;

 

(c)       purchase
money liens securing Purchase Money Debt (i) on equipment acquired or held by Borrower incurred for financing the acquisition
of the equipment, or (ii) existing on equipment when acquired, in each case if the lien is confined to the equipment and improvements
and the proceeds of the equipment;

 

(d)       liens
of carriers, warehousemen, suppliers, landlords or other persons that are possessory in nature arising in the ordinary course
of business so long as the amount secured by such liens is not delinquent or which are being contested in good faith and by appropriate
proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject thereto;

 

(e)       liens
to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations
incurred in the ordinary course of business;

 

(f)       liens
incurred in the extension, renewal or refinancing of the indebtedness secured by liens described in clause (c), but any extension,
renewal or replacement lien must be limited to the property encumbered by the existing lien and the principal amount of the indebtedness
may not increase;

 

(g)       leases
or subleases of real property granted in the ordinary course of business, and leases, subleases, non-exclusive licenses or sublicenses
of property granted in the ordinary course of Borrower’s business, if the leases, subleases, licenses and sublicenses do
not prohibit granting Lender a security interest;

 

(h)       non-exclusive
licenses of intellectual property granted to third parties in the ordinary course of business;

 

(i)       liens
arising from judgments, orders, decrees or attachments in circumstances not constituting an Event of Default under Section 7.6;

 

(j)       security
interest in favor of Senior Lender pursuant to the Senior Loan Documents; and

 

(k)       easements,
rights of way, covenants, restrictions, reservations, exceptions and other similar restrictions and encumbrances or title defects,
in each case existing when the property was acquired or incurred in the ordinary course of business which, in the aggregate, do
not materially detract from the value or usefulness of the property subject thereto or materially interfere with the ordinary
conduct of business of Borrower.

 

    	 	CASHFLOW	Page 23 of 28

    	 

    

 

ADDENDUM
2

 

CONDITIONS
TO FUNDING

 

As
conditions precedent to Lender funding the Loan, Borrower shall have:

 

	A.	Delivered
                                         to Lender, in form and content acceptable to Lender, fully executed copies of the following:

 

	 	1.	This
    Agreement;
	 	 	 
	 	2.	Continuing
    Guaranties by Principal and Richard Jackman;
	 	 	 
	 	3.	Payoff
    letter from Existing Secured Lender;
	 	 	 
	 	4.	A
    certificate of insurance covering the Collateral and the location of the Collateral, naming Lender as additional insured and
    loss payee;
	 	 	 
	 	5.	Debt
    and lien subordination agreements among Borrower, Lender and Senior Lender, which provides, among other things, that any Lender
    payment standstill shall not exceed ninety (90) days;
	 	 	 
	 	6.	Collateral
    Assignment of Rights under Acquisition Transaction Documents between Administrative Borrower and Lender;
	 	 	 
	 	7.	Seller
    Subordination Agreement among Seller, Lender and Senior Lender;
	 	 	 
	 	8.	Senior
    Loan Documents;
	 	 	 
	 	9.	Acquisition
    Transaction Documents;
	 	 	 
	 	10.	Confirmation
    that (a) Borrower has cash of no less than $750,000; (b) no less than $2,350,000 has been contributed as equity to Borrower
    in order to consummate the Acquisition Transaction; and (c) the Acquisition Transaction has been consummated; and
	 	 	 
	 	11.	Such
    other documents as may be reasonably required by Lender;

 

	B.	Completed
                                         all matters described on Addendum 4 which are required to be completed prior to funding
                                         the Loan.

 

    	 	CASHFLOW	Page 24 of 28

    	 

    

 

ADDENDUM
3

 

ADDITIONAL
COVENANTS

 

	1.	Financial
    Covenants. So long as any of the Obligations remain outstanding, Borrower shall do the following:

 

(a)       Minimum
Unrestricted Cash. Commencing 30 days following the date of this Agreement and continuing thereafter, maintain unrestricted
cash in its accounts at the banks listed in Addendum 5 (collectively “Bank”) plus availability under the Senior Loan
Agreements in an amount of not less than $1,000,000;

 

(b)
       Minimum Adjusted EBITDA. Maintain revenue and EBITDA of Borrower, as calculated
in accordance with GAAP, in an amount no less than $800,000 for each three (3) month period ending on the last date of each fiscal
quarter of Borrower, commencing September 30, 2017;

 

(c)       Minimum
Fixed Charge Coverage Ratio. Maintain a Fixed Charge Coverage Ratio of no less than 1.10:1.0, for each three (3) month period
ending on the last date of each calendar month, commencing September 30, 2017. As used herein, “Fixed Charge Coverage Ratio”
means a fraction, the numerator of which is Borrower’s EBITDA, as calculated in accordance with GAAP, for the three (3)
month period ending on the date of calculation, and the denominator of which is Borrower’s projected fixed charges, as calculated
in accordance with GAAP, for the three (3) month period commencing on the first day following the date of calculation (the “Projected
Three Months”); provided, however, that: (x) for removal of doubt, Borrower’s fixed charges shall include, without
limitation, all sums due during the Projected Three Months on the Subordinated Debt held by Seller pursuant to the Acquisition
Transaction Documents; and (y) in no event shall Borrower’s fixed charges (other than those constituting sums due during
the Projected Three Months on the Subordinated Debt held by Seller) during any Projected Three Months be more than ten percent
(10%) of Borrower’s fixed charges (other than those constituting sums due during the Projected Three Months on the Subordinated
Debt held by Seller) for any preceding three (3) month period;

 

(d)       Reports
to Lender. Report to Lender calculation of compliance or non-compliance with the covenants set forth in clauses (a), (b) and
(c) above no later than thirty (30) days following the end of the applicable month; and

 

(e)       Monthly
Statements. Send Lender copies of monthly statements pertaining to Borrower’s accounts at Bank within thirty (30) days
after the end of each calendar month.

 

	2.	Post-Closing
    Covenants. Borrower shall deliver to Lender the following, in form and substance acceptable to Lender:

 

(a)       no
later than ten (10) days following the date of this Agreement, original stock certificate issued by iTech to Administrative Borrower,
evidencing issuance to Administrative Borrower of 100% of the outstanding stock iTech, together with an executed blank stock power;

 

(b)       no
later than ten (10) days following the date of this Agreement, a warrant for issuance to Lender of warrant shares of Administrative
Borrower (“Warrant”) in value equal to $300,000;

 

(c)       no
later than ten (10) days following the date of this Agreement, documentation evidencing the consummation of the Acquisition Transaction;
and

 

(d)       no
later than ten (10) days following the date of this Agreement, confirmation that (i) Richard Jackman has been elected Chief Revenue
Officer of Administrative Borrower, (ii) Tim Rhaman has been elected Chief Financial Officer of Administrative Borrower, and (iii)
John Andrews has been elected the President of iTech and the Chief Operating Officer of Administrative Officer.

 

    	 	CASHFLOW	Page 25 of 28

    	 

    

 

	3.	Joint and
    Several Liability of the Borrowers.

 

(a)       For
purposes of this Section 3 and Section 4 below, “Borrowers” means, collectively, all of the entities comprising Borrower
(as defined on the Loan Chart on the first page of this Agreement), and any Borrower shall mean any one of the entities comprising
Borrower (as defined on the Loan Chart).

 

(b)       Notwithstanding
anything in this Agreement or any other Loan Document to the contrary, each of the Borrowers hereby accepts joint and several
liability hereunder and under the other Loan Documents in consideration of the financial accommodations to be provided by Agent
under this Agreement and the other Loan Documents, for the mutual benefit, directly and indirectly, of each of the Borrowers and
in consideration of the undertakings of the other Borrowers to accept joint and several liability for the Obligations. Each of
the Borrowers, jointly and severally, hereby irrevocably and unconditionally accepts, not merely as a surety but also as a co-debtor,
joint and several liability with the other Borrowers, with respect to the payment and performance of all of the Obligations (including,
without limitation, any Obligations arising under this Section 3), it being the intention of the parties hereto that all
the Obligations shall be the joint and several obligations of each of the Borrowers without preferences or distinction among them.
If and to the extent that any of the Borrowers shall fail to make any payment with respect to any of the Obligations as and when
due or to perform any of the Obligations in accordance with the terms thereof, then in each such event the other Borrowers will
make such payment with respect to, or perform, such Obligation. Subject to the terms and conditions hereof, the Obligations of
each of the Borrowers under the provisions of this Section 3 constitute the absolute and unconditional, full recourse Obligations
of each of the Borrowers enforceable against each such person to the full extent of its properties and assets, irrespective of
the validity, regularity or enforceability of this Agreement, the other Loan Documents or any other circumstances whatsoever.

 

(c)       The
provisions of this Section 3 are made for the benefit of the Agent and its successors and assigns, and may be enforced
by them from time to time against any or all of the Borrowers as often as occasion therefor may arise and without requirement
on the part of Agent or such successors or assigns first to marshal any of its or their claims or to exercise any of its or their
rights against any of the other Borrowers or to exhaust any remedies available to it or them against any of the other Borrowers
or to resort to any other source or means of obtaining payment of any of the Obligations hereunder or to elect any other remedy.
The provisions of this Section 3 shall remain in effect until all of the Obligations shall have been paid in full or otherwise
fully satisfied.

 

(d)       Each
of the Borrowers hereby agrees that it will not enforce any of its rights of contribution or subrogation against the other Borrowers
with respect to any liability incurred by it hereunder or under any of the other Loan Documents or any payments made by it to
Agent with respect to any of the Obligations or any Collateral until such time as all of the Obligations (other than contingent
indemnification Obligations) have been paid in full in cash. Any claim which any Borrower may have against any other Borrower
with respect to any payments to Agent hereunder or under any other Loan Documents are hereby expressly made subordinate and junior
in right of payment, without limitation as to any increases in the Obligations arising hereunder or thereunder, to the prior payment
in full in cash of the Obligations (other than contingent indemnification Obligations).

 

4.       Appointment
of Agent for the Borrowers. Each Borrower hereby irrevocably appoints SHAREDLABS, INC., a Delaware corporation, as the borrowing
agent and attorney-in-fact for the Borrowers (the “Administrative Borrower”), which appointment shall remain in full
force and effect unless and until Agent shall have received prior written notice signed by all of the Borrowers that such appointment
has been revoked and that another Borrower has been appointed Administrative Borrower. Each Borrower hereby irrevocably appoints
and authorizes the Administrative Borrower (i) to provide Agent with all notices and instructions under this Agreement and (ii)
to take such action as the Administrative Borrower deems appropriate on its behalf to exercise such other powers as are reasonably
incidental thereto to carry out the purposes of this Agreement. It is understood that the handling of the Collateral of the Borrowers
in a combined fashion, as more fully set forth herein, is done solely as an accommodation to the Borrowers in order to utilize
the collective borrowing powers of the Borrowers in the most efficient and economical manner and at their request, and that Agent
shall not incur liability to the Borrowers as a result hereof. Each of the Borrowers expects to derive benefit, directly or indirectly,
from the handling of the Collateral in a combined fashion since the successful operation of each Borrower is dependent on the
continued successful performance of the integrated group. To induce Agent to do so, and in consideration thereof, each of the
Borrowers hereby jointly and severally agrees to indemnify the Agent Related Persons and the Lender Related Persons and hold all
of them harmless against any and all liability, expense, loss or claim of damage or injury, made against such indemnitee by any
of the Borrowers or by any third party whosoever, arising from or incurred by reason of (a) the handling of the Collateral of
the Borrowers as herein provided, (b) Agent relying on any instructions of the Administrative Borrower, or (c) any other action
taken by Agent hereunder or under the other Loan Documents.

 

    	 	CASHFLOW	Page 26 of 28

    	 

    

 

ADDENDUM
4

 

LOAN
CLOSING CHECKLIST

 

[X]tems
have not been submitted

 

/
Items submitted, but missing key information

 

[  ]Items
submitted

 

	CLOSING
    DOCUMENTATION AND CONDITIONS	 
	1.	SGC
    Business Loan Security Agreement	[  ]	 
	2.	ACH
    Authorization	[  ]	 
	3.	Continuing
    Guaranties	[  ]	 
	4.	Certificates
    of Insurance	[  ]	 
	5.	Payoff
    Letter from Existing Secured Lender	[  ]	 
	6.	Debt
    and Lien Subordination Agreements with Senior Lender	[  ]	 
	7.	Seller
    Note Subordination Agreement	[  ]	 
	8.	Collateral
    Assignment of Rights under Acquisition Transaction Documents	[  ]	 
	9.	Delivery
    of Acquisition Transaction Documents	[  ]	 
	10.	Delivery
    of Senior Loan Documents	 	 
	11.	UCC-1
    Financing Statements	[  ]	 
	12.	Confirmation
    that (a) Borrower has cash of no less than $750,000; (b) no less than $2,350,000 has been contributed as equity to Borrower
    in order to consummate the Acquisition Transaction; and (c) the Acquisition Transaction has been consummated.	 	 

 

	LEGAL
    DUE DILIGENCE	 
	1.	Litigation
    Searches	[  ]	 
	2.	UCC
    Searches	[  ]	 
	3.	IP
    Searches	[  ]	 
	4.	Certificate
    of Good Standing	[  ]	 
	5.	Certified
    Articles	[  ]	 
	6.	Debt
    Schedule	[  ]	 

 

	POST-CLOSING
    ITEMS	 
	Task/Document	Timing
    Post Close	Responsible
    Party	 
	1.	Certified
    UCC Search	 	 	[  ]	 
	2.	Warrant	10
    days	Lender
    and Borrower	[  ]	 
	3.	Original
    stock certificate issued by iTech to Administrative Borrower, evidencing issuance to Administrative Borrower of 100% of the
    outstanding stock iTech, together with an executed blank stock power	10
    days	Borrower	[  ]	 
	4.	Evidence
    of consummation of Acquisition Transaction.	10
    days	Borrower	[  ]	 
	5.	Confirmation
    that Richard Jackman has been elected Chief Revenue Officer of Administrative Borrower, Tim Rhaman has been elected Chief
    Financial Officer of Administrative Borrower, and John Andrews has been elected the President of iTech and the Chief Operating
    Officer of Administrative Officer	10
    days	Borrower	[  ]	 

 

    	 	CASHFLOW	Page 27 of 28

    	 

    

 

Addendum
5

 

Borrower
Banks

 

	Bank
    Name	Account
    Number	Routing
    Number
	Bank
    of America	8980
    86494622	063000047
	Community
    Bank N.A.	15118409	011600020
	TD
    Bank	5242065250	011600033

 

    	 	CASHFLOW	Page 28 of 28

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