Document:

Exhibit
10.2

 

NEITHER
THIS NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF
COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY. THIS NOTE AND
THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY SUCH
SECURITIES.

 

BOXLIGHT
CORPORATION

 

Form
of Secured 

Convertible
Promissory

Note
due December 13, 2021

 

	Note
    No.	$1,375,000.00

Dated:
December 13, 2019 (the “Issuance Date”)

 

For
value received, BOXLIGHT CORPORATION, a Nevada corporation (the “Maker” or the “Company”),
hereby promises to pay to the order of Lind Global Macro Fund, LP, a Delaware limited partnership (together with its successors
and representatives, the “Holder”), in accordance with the terms hereinafter provided, the principal amount
of ONE MILLION THREE HUNDRED SEVENTY-FIVE THOUSAND DOLLARS ($1,375,000.00) (the “Principal Amount”).

 

All
payments under or pursuant to this Secured Convertible Promissory Note (this “Note”) shall be made in United
States Dollars in immediately available funds to the Holder at the address of the Holder set forth in the Purchase Agreement (as
hereinafter defined) or at such other place as the Holder may designate from time to time in writing to the Maker or by wire transfer
of funds to the Holder’s account, instructions for which are attached hereto as Exhibit A. The outstanding principal
balance of this Note plus all accrued interest thereon (if any) shall be due and payable on December 13, 2021 (the “Maturity
Date”) or at such earlier time as provided herein. In the event that the Maturity Date shall fall on Saturday or Sunday,
such Maturity Date shall be the next succeeding business day.

 

    	 	 	 

     

    

 

ARTICLE
1

 

1.1
Purchase Agreement. This Note has been executed and delivered pursuant to the Securities Purchase Agreement, dated as of
December 13, 2019 (as the same may be amended from time to time, the “Purchase Agreement”), by and between
the Maker and the Holder. Capitalized terms used and not otherwise defined herein shall have the meanings set forth for such terms
in the Purchase Agreement. In addition, each Holder of the Note acknowledges receipt of the Purchase Agreement and specifically
agrees that the Company shall not be required to issue any “Investor Shares” (as defined in the Purchase Agreement),
including Conversion Shares issuable upon conversion of this Note, if such issuance would cause the Company to be required to
obtain the approval of the stockholders of the Company pursuant to the rules and regulations of The Nasdaq Stock Market; provided,
that the Company shall, at the request of the Holder of this Note, promptly call a meeting of the stockholders of the Company
for the purpose of obtaining such approval.

 

1.2
Interest. Except as set forth in Section 2.2, the entire unpaid Principal Amount hereof shall accrue interest at
an annual rate equal to eight percent (8%), compounded monthly, which shall be payable as set forth in Section 1.3(a) below.

 

1.3
Payment of Principal and Interest.

 

(a)
Interest Payments. Commencing on the day that is the one (1) month anniversary of the Issuance Date, and then on each successive
one (1) month anniversary thereof and on the Maturity Date (or if this Note is accelerated, converted or redeemed, on the date
of such acceleration, conversion or redemption, as the case may be), until all amounts owing hereunder have been paid, as more
particularly set forth in Schedule 1 attached hereto (each, an “Interest Payment Date”), the Maker shall
pay to the Holder all interest that has accrued and remains unpaid on the outstanding Principal Amount of this Note, in accordance
with the terms hereof. On the Interest Payment Dates, such monthly payments shall, at the Maker’s option, be made in cash
or Repayment Shares; provided that the number of Repayment Shares shall be determined by dividing the accrued interest being paid
in shares of Common Stock by the Repayment Share Price (as defined below); provided, however, that no interest may be paid in
Repayment Shares unless such (1) such Repayment Shares may be immediately resold under Rule 144 without restriction on the number
of shares to be sold or manner of sale, or (2) registered for resale under the 1933 Act. Notwithstanding the foregoing, for the
period commencing on the Issuance Date and ending on the six (6) month anniversary of the Issuance Date, all the interest payable
during such period pursuant to this Section 1.3(a) shall accrue and, on the one hundred eighty-one (181) day anniversary
of the Issuance Date, the Holder shall have the option to either (i) convert all such accrued interest into shares of Common Stock
at the lesser of the Conversion Price (as defined below) and the Repayment Share Price or (ii) be paid, in a single payment, the
full amount of all the accrued interest in cash.

 

    	 	2	 

     

    

 

(b)
Principal Installment Payments. Commencing on the day that is the six (6) month anniversary of the Issuance Date, the Maker
shall pay to the Holder the outstanding Principal Amount hereunder in monthly installments, on such date and each one (1) month
anniversary thereof, as more particularly set forth in Schedule 1 attached hereto (each, a “Payment Date”),
of Seventy-Six Thousand Three Hundred Eighty-Eight and 89/100 Dollars ($76,388.89) (the “Monthly Payments”),
until the Principal Amount has been paid in full prior to or on the Maturity Date or, if earlier, upon acceleration, conversion
or redemption of this Note in accordance with the terms herein. The Monthly Payments shall, at the Maker’s option, be made
in (i) cash, (ii) Repayment Shares, or (iii) a combination of cash and Repayment Shares; provided that the number of Repayment
Shares shall be determined by dividing the Principal Amount plus accrued interest (if any) being paid in shares of Common Stock
at the Repayment Share Price; provided, however, that no portion of the Principal Amount may be paid in Repayment Shares unless
(A) such Repayment Shares may be immediately resold under Rule 144 without restriction on the number of shares to be sold or manner
of sale, or (B) registered for resale under the 1933 Act. The Monthly Payments may be increased at the Maker’s sole discretion
if made in cash, or upon mutual consent of the Maker and the Holder if made by the issuance of the Repayment Shares.

 

(c)
Prepayment. At any time after the Issuance Date, the Maker may repay all (but not less than all) of the Outstanding Principal
Amount plus all accrued interest thereon (if any), upon at least ten (10) days written notice of the Holder (the “Prepayment
Notice”). If the Maker elects to prepay this Note pursuant to the provisions of this Section 1.3(c), the Holder
shall have the right, upon written notice to the Maker (a “Prepayment Conversion Notice”) within five (5) Business
Days of the Holder’s receipt of a Prepayment Notice, to convert up to twenty-five percent (25%) of the Outstanding Principal
Amount plus accrued interest thereon (if any) on the Issuance Date (the “Maximum Amount”) at the lesser of
(i) the Conversion Price and (ii) the Cash Repayment Price (as defined below), in accordance with the provisions of Article 3,
specifying the Principal Amount plus accrued interest (if any) (up to the Maximum Amount) that the Holder will convert. Upon delivery
of a Prepayment Notice, the Maker irrevocably and unconditionally agrees to, within five (5) Business Days of receiving a Prepayment
Conversion Notice, and if no Prepayment Conversion Notice is received, within ten (10) Business Days of delivery of a Prepayment
Notice: (i) repay the Outstanding Principal Amount plus all accrued interest thereon (if any) minus the Principal Amount set forth
in the Prepayment Conversion Notice and (ii) issue the applicable Conversion Shares to the Holder in accordance with Article 3.
The foregoing notwithstanding, the Maker may not deliver a Prepayment Notice with respect to any Outstanding Principal Amount
that is subject to a Conversion Notice delivered by the Holder in accordance with Article 3.

 

(d)
Delisting from a Trading Market. If at any time the Common Stock ceases to be listed on a Trading Market, (i) the Holder
may deliver a demand for payment to the Company and, if such a demand is delivered, the Company shall, within ten (10) Business
Days following receipt of the demand for payment from the Holder, pay all of the Outstanding Principal Amount plus accrued interest
thereon (if any) or (ii) the Holder may, at its election, after the six month anniversary of the Issuance Date or earlier if a
Registration Statement covering the Conversion Shares has been declared effective, upon notice to the Company in accordance with
Section 5.1, convert all or a portion of the Outstanding Principal Amount plus any accrued interest and the Conversion
Price shall be adjusted to the lower of (A) the then-current Conversion Price and (A) eighty percent (80%) of the average of the
three (3) lowest daily VWAPs during the twenty (20) Trading Days (as defined below) prior to delivery by the Holder of its notice
of conversion pursuant to this Section 1.3(d).

 

    	 	3	 

     

    

 

1.4
Payment on Non-Business Days. Whenever any payment to be made shall be due on a day which is not a Business Day, such payment
may be due on the next succeeding Business Day.

 

1.5
Transfer. This Note may be transferred or sold, subject to the provisions of Section 5.8 of this Note, or pledged,
hypothecated or otherwise granted as security by the Holder.

 

1.6
Replacement. Upon receipt of a duly executed and notarized written statement from the Holder with respect to the loss,
theft or destruction of this Note (or any replacement hereof), or, in the case of a mutilation of this Note, upon surrender and
cancellation of such Note, the Maker shall issue a new Note, of like tenor and amount, in lieu of such lost, stolen, destroyed
or mutilated Note.

 

1.7
Use of Proceeds. The Maker shall use the proceeds of this Note as set forth in the Purchase Agreement.

 

1.8
Status of Note and Security Interest. The security interest of the Holder and the obligations of the Maker under this Note
relating thereto shall be junior and expressly made subject and subordinate to (a) the security interest held by Sallyport Commercial
Finance, LLC (“Sallyport”) pursuant to that certain Account Sale and Purchase Agreement dated as of May 5,
2017 by and between Sallyport and the Maker (the “Sallyport Agreement”), or (b) a security interest held by
a single asset-backed lender (which may include a commercial finance company, hedge fund or commercial banking institutions) (a
“Senior Lender”), in connection with a lending facility, on terms and conditions approved by the Holder (the
“Permitted ABL Facility”), pursuant to which such Senior Lender may advance up to no more than eight-five percent
(85%) of the aggregate amount of the Maker’s accounts receivable and no more than fifty percent (50%) of the aggregate value
of the Maker’s finished goods inventory, but in no event have an outstanding balance exceeding Ten Million Dollars ($10,000,000),
but such security interest in favor of the Holder shall be senior to any other security interests granted by the Maker to the
extent permitted by the Holder. The security interest of the Holder and the obligations of the Maker under this Note relating
thereto shall be pari passu in respect of the Second Restated Secured Convertible Promissory Note dated September 24, 2019 issued
by the Maker to the Holder (the “Existing Note”). The payment obligations of the Maker hereunder shall be pari
passu in respect of all payment obligations owing to Sallyport under the Sallyport Agreement, to the Holder under the Existing
Note and to any Senior Lender under the Permitted ABL Facility and shall be senior to all other Indebtedness and equity of the
Company, including Preferred Stock. On the date hereof, Sallyport, the Maker and the Holder are entering into the Sallyport Intercreditor
Agreement (as defined in Section 5.1 hereof). In addition, in the event that the Maker shall enter into any Permitted ABL Facility
with a Senior Lender prior to the Maturity Date, the Holder of this Note shall execute and deliver an intercreditor agreement
among the Maker, the Senior Lender and the Holder of this Note, in form and substance acceptable to such Senior Lender and reasonably
acceptable to the Holder evidencing the priority of such Senior Lender’s security interest (the “Senior Lender
Intercreditor Agreement” and, collectively with the Sallyport Intercreditor Agreement, the “Intercreditor Agreements”
and each, an “Intercreditor Agreement”), with all related legal and documentation costs to be paid by the Maker.
Upon any Liquidation Event (as hereinafter defined), the Holder will be entitled to receive, before any distribution or payment
is made upon, or set apart with respect to, any Indebtedness of the Maker or any class of capital stock of the Maker, (other than
to Sallyport or a Senior Lender pursuant to the express terms of the applicable Intercreditor Agreement), an amount equal to the
Outstanding Principal Amount plus all accrued interest thereon (if any). For purposes of this Note, “Liquidation Event”
means a liquidation pursuant to a filing of a petition for bankruptcy under applicable law or any other insolvency or debtor’s
relief, an assignment for the benefit of creditors, or a voluntary or involuntary liquidation, dissolution or winding up of the
affairs of the Maker. Notwithstanding the foregoing, the security interest granted in favor of Sallyport under the Sallyport Agreement
shall be terminated immediately prior to or in connection with the Company entering into a Permitted ABL Facility with a Senior
Lender as contemplated above.

 

    	 	4	 

     

    

 

1.9
Secured Note. The full amount of this Note is secured by the Collateral (as defined in the Security Agreement) identified
and described as security therefor in the Amended and Restated Security Agreement dated as of December [●], 2019 (the “Security
Agreement”) by and between the Maker and the Holder.

 

1.10
Tax Treatment. The Maker and the Holder agree that for U.S. federal income tax purposes, and applicable state, local and
non-U.S. income tax purposes, this Note is not intended to be, and shall not be, treated as indebtedness. Neither the Maker nor
the Holder shall take any contrary position on any tax return, or in any audit, claim, investigation, inquiry or proceeding in
respect of Taxes, unless otherwise required pursuant to a final determination within the meaning of Section 1313 of the Internal
Revenue Code of 1986, as amended (the “Code”), or any analogous provision of applicable state, local or non-U.S.
law.

 

ARTICLE
2

 

2.1
Events of Default. An “Event of Default” under this Note shall mean the occurrence of any of the events
defined in the Purchase Agreement, and any of the additional events described below:

 

(a)
any default in the payment of (i) the Principal Amount or accrued interest (if any) hereunder when due; or (ii) liquidated damages
in respect of this Note as and when the same shall become due and payable (whether on a Payment Date, the Maturity Date or by
acceleration or otherwise);

 

(b)
the Maker shall fail to observe or perform any other covenant, condition or agreement contained in this Note or any Transaction
Document;

 

(c)
the Maker’s notice to the Holder, including by way of public announcement, at any time, of its inability to comply (including
for any of the reasons described in Section 3.6(a) hereof) or its intention not to comply with proper requests for conversion
of this Note into shares of Common Stock;

 

    	 	5	 

     

    

 

(d)
the Maker shall fail to (i) timely deliver the shares of Common Stock as and when required in Section 3.2; or (ii) make
the payment of any fees and/or liquidated damages under this Note, the Purchase Agreement or the other Transaction Documents;

 

(e)
default shall be made in the performance or observance of any material covenant, condition or agreement contained in the Purchase
Agreement or any other Transaction Document that is not covered by any other provisions of this Section 2.1;

 

(f)
at any time the Maker shall fail to have a sufficient number of shares of Common Stock authorized, reserved and available for
issuance to satisfy the potential conversion in full (disregarding for this purpose any and all limitations of any kind on such
conversion) of this Note or to satisfy the mandatory issuance of Make Whole Shares, if any, pursuant to the Purchase Agreement;

 

(g)
any representation or warranty made by the Maker or any of its Subsidiaries herein or in the Purchase Agreement, this Note or
any other Transaction Document shall prove to have been false or incorrect or breached in a material respect on the date as of
which made;

 

(h)
unless otherwise approved in writing in advance by the Holder, the Maker shall, or shall announce an intention to pursue or consummate
a Change of Control, or a Change of Control shall be consummated, or the Maker shall negotiate, propose or enter into any agreement,
understanding or arrangement with respect to any Change of Control;

 

(i)
the Maker or any of its Subsidiaries shall (A) default in any payment of any amount or amounts of principal of or interest on
any Indebtedness (other than the Indebtedness hereunder), the aggregate principal amount of which Indebtedness is in excess of
$250,000; (B) default in the observance or performance of any other agreement or condition relating to any such Indebtedness or
contained in any instrument or agreement evidencing, securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default or other event or condition is to cause, or to permit the holder or holders or beneficiary
or beneficiaries of such Indebtedness to cause with the giving of notice if required, such Indebtedness to become due prior to
its stated maturity; or (C) default under any Indebtedness to Sallyport Commercial Finance LLC or a Senior Lender.

 

(j)
the Maker or any of its Subsidiaries shall: (i) apply for or consent to the appointment of, or the taking of possession by, a
receiver, custodian, trustee or liquidator of itself or of all or a substantial part of its property or assets; (ii) make a general
assignment for the benefit of its creditors; (iii) commence a voluntary case under the United States Bankruptcy Code (as now or
hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic); (iv) file a petition seeking to take
advantage of any bankruptcy, insolvency, moratorium, reorganization or other similar law affecting the enforcement of creditors’
rights generally; (v) acquiesce in writing to any petition filed against it in an involuntary case under United States Bankruptcy
Code (as now or hereafter in effect) or under the comparable laws of any jurisdiction (foreign or domestic); (vi) issue a notice
of bankruptcy or winding down of its operations or issue a press release regarding same; or (vii) take any action under the laws
of any jurisdiction (foreign or domestic) analogous to any of the foregoing;

 

    	 	6	 

     

    

 

(k)
a proceeding or case shall be commenced in respect of the Maker or any of its Subsidiaries, without its application or consent,
in any court of competent jurisdiction, seeking: (i) the liquidation, reorganization, moratorium, dissolution, winding up, or
composition or readjustment of its debts; (ii) the appointment of a trustee, receiver, custodian, liquidator or the like of it
or of all or any substantial part of its assets in connection with the liquidation or dissolution of the Maker or any of its Subsidiaries;
or (iii) similar relief in respect of it under any law providing for the relief of debtors, and such proceeding or case described
in clause (i), (ii) or (iii) shall continue undismissed, or unstayed and in effect, for a period of forty-five (45) days or any
order for relief shall be entered in an involuntary case under United States Bankruptcy Code (as now or hereafter in effect) or
under the comparable laws of any jurisdiction (foreign or domestic) against the Maker or any of its Subsidiaries or action under
the laws of any jurisdiction (foreign or domestic) analogous to any of the foregoing shall be taken with respect to the Maker
or any of its Subsidiaries and shall continue undismissed, or unstayed and in effect for a period of forty-five (45) days;

 

(l)
the failure of the Maker to instruct its transfer agent to remove any legends from shares of Common Stock and issue such unlegended
certificates to the Holder within three (3) Trading Days of the Holder’s request so long as the Holder has provided reasonable
assurances to the Maker that such shares of Common Stock can be sold pursuant to Rule 144 or any other applicable exemption;

 

(m)
the Maker’s shares of Common Stock are no longer publicly traded or cease to be listed on the Trading Market or, after the
six month anniversary of the Issuance Date, any Investor Shares may not be immediately resold under Rule 144 without restriction
on the number of shares to be sold or manner of sale, unless such Investor Shares have been registered for resale under the 1933
Act and may be sold without restriction;

 

(n)
the Maker consummates a “going private” transaction and as a result the Common Stock is no longer registered under
Sections 12(b) or 12(g) of the 1934 Act;

 

(o)
there shall be any SEC or judicial stop trade order or trading suspension stop-order or any restriction in place with the transfer
agent for the Common Stock restricting the trading of such Common Stock; or

 

(p)
the occurrence of a Material Adverse Effect in respect of the Maker, or the Maker and its Subsidiaries taken as a whole.

 

For
the avoidance of doubt, any default pursuant to clause (i) above shall not be subject to any cure periods pursuant to the instrument
governing such Indebtedness or this Note.

 

    	 	7	 

     

    

 

2.2
Remedies Upon an Event of Default.

 

(a)
Upon the occurrence of any Event of Default that has not been remedied within (i) two (2) Business Days for an Event of Default
occurring by the Company’s failure to comply with Sections 5.1(c) and 7.1(c) of the Purchase Agreement or
Section 3.2 of this Note, or (ii) ten (10) Business Days for all other Events of Default, provided, however,
that there shall be no cure period for an Event of Default described in Section 2.1(i), 2.1(j) or 2.1(k),
the Maker shall pay interest on the Outstanding Principal Amount hereunder at an interest rate per annum at all times equal to
twelve percent (12%) per annum (the “Default Interest Rate”). Accrued and unpaid interest (including interest
on past due interest) shall be due and payable upon demand.

 

(b)
Upon the occurrence of any Event of Default, the Maker shall, as promptly as possible but in any event within one (1) Business
Day of the occurrence of such Event of Default, notify the Holder of the occurrence of such Event of Default, describing the event
or factual situation giving rise to the Event of Default and specifying the relevant subsection or subsections of Section 2.1
hereof under which such Event of Default has occurred.

 

(c)
If an Event of Default shall have occurred and shall not have been remedied within (i) two (2) Business Days for an Event of Default
occurring by the Company’s failure to comply with Sections 5.1(c) and 7.1(c) of the Purchase Agreement or
Section 3.2 of this Note, or (ii) ten (10) Business Days for all other Events of Default, provided, however,
that there shall be no cure period for an Event of Default described in Section 2.1(i), 2.1(j) or 2.1(k),
the Holder may at any time at its option declare the entire unpaid principal balance of this Note plus all accrued interest thereon
(if any) due and payable, and thereupon, the same shall be accelerated and so due and payable, without presentment, demand, protest,
or notice, all of which are hereby expressly unconditionally and irrevocably waived by the Maker; provided, however, that
(x) upon the occurrence of an Event of Default described above, the Holder, in its sole and absolute discretion, may: (a) demand
the redemption of this Note pursuant to Section 3.5(a) hereof; (b) from time-to-time demand that all or a portion of the
Outstanding Principal Amount plus all accrued interest thereon (if any) be converted into shares of Common Stock at the lower
of (i) the then-current Conversion Price and (ii) eighty-percent (80%) of the average of the three (3) lowest daily VWAPs during
the twenty (20) Trading Days prior to the delivery by the Holder of the applicable notice of conversion; or (c) exercise or otherwise
enforce any one or more of the Holder’s rights, powers, privileges, remedies and interests under this Note, the Purchase
Agreement, the other Transaction Documents or applicable law and (y) upon the occurrence of an Event of Default described in clauses
(k) or (l) above, all amounts owing under this Note shall become immediately due and payable without presentment, demand, protest
or other notice of any kind, all of which are hereby waived by the Maker. No course of delay on the part of the Holder shall operate
as a waiver thereof or otherwise prejudice the rights of the Holder. No remedy conferred hereby shall be exclusive of any other
remedy referred to herein or now or hereafter available at law, in equity, by statute or otherwise.

 

    	 	8	 

     

    

 

ARTICLE
3

 

3.1
Conversion.

 

(a)
Voluntary Conversion. At any time and from time to time, subject to Section 3.3, this Note shall be convertible
(in whole or in part), at the option of the Holder, into such number of fully paid and non-assessable shares of Common Stock as
is determined by dividing (x) that portion of the Outstanding Principal Amount plus any accrued interest thereon that the Holder
elects to convert by (y) the Conversion Price then in effect on the date on which the Holder delivers a notice of conversion,
in substantially the form attached hereto as Exhibit B (the “Conversion Notice”), in accordance with
Section 5.1 to the Maker. The Holder shall deliver this Note to the Maker at the address designated in the Purchase Agreement
at such time that this Note is fully converted. With respect to partial conversions of this Note, the Maker shall keep written
records of the amount of this Note converted as of the date of such conversion (each, a “Conversion Date”).

 

(b)
Mandatory Conversion. Subject to Section 3.3, at the Maker’s sole option and upon notice by the Maker to the
Holder stating the portion of the Outstanding Principal Amount to be converted, for which a calculation of the Conversion Price,
as adjusted, and the number of Conversion Shares will be provided by the Holder to the Maker, (i) up to fifty percent (50%) of
the Outstanding Principal Amount shall be automatically converted if the daily VWAP is greater than $5.00 for thirty (30) consecutive
Trading Days or (ii) one hundred percent (100%) of the Outstanding Principal Amount shall be automatically converted if the daily
VWAP is greater than $6.25 for thirty (30) consecutive Trading Days.

 

(c)
Conversion Price. The “Conversion Price” means $2.50, and shall be subject to adjustment as provided
herein.

 

(d)
Credit towards Repayment. The face value of any portion of this Note that is converted pursuant to Sections 3.1(a)
and 3.1(b) shall be credited towards future Monthly Repayments pursuant to Section 1.3(b). For example, if $229,166.67
of the Outstanding Principal Amount is converted, the Maker shall not be obligated to make the Monthly Repayments for the subsequent
three months.

 

3.2
Delivery of Conversion Shares. As soon as practicable after any conversion in accordance with this Note and in any event
within three (3) Trading Days thereafter (such date, the “Share Delivery Date”), the Maker shall, at its expense,
cause to be issued in the name of and delivered to the Holder, or as the Holder may direct, a certificate or certificates evidencing
the number of fully paid and nonassessable shares of Common Stock to which the Holder shall be entitled on such conversion (the
“Conversion Shares”), in such denominations as may be requested by the Holder, which certificate or certificates
shall be free of restrictive and trading legends (except for any such legends as may be required under the 1933 Act). In lieu
of delivering physical certificates for the shares of Common Stock issuable upon any conversion of this Note, provided the Company’s
transfer agent is participating in the Depository Trust Company (“DTC”) Fast Automated Securities Transfer
program or a similar program, upon request of the Holder, the Company shall cause its transfer agent to electronically transmit
such shares of Common Stock issuable upon conversion of this Note to the Holder (or its designee), by crediting the account of
the Holder’s (or such designee’s) broker with DTC through its Deposit Withdrawal Agent Commission system (provided
that the same time periods herein as for stock certificates shall apply) as instructed by the Holder (or its designee).

 

    	 	9	 

     

    

 

3.3
Ownership Cap. Notwithstanding anything to the contrary contained herein, the Holder shall not be entitled to receive shares
representing Equity Interests upon conversion of this Note to the extent (but only to the extent) that such exercise or receipt
would cause the Holder Group (as defined below) to become, directly or indirectly, a “beneficial owner” (within the
meaning of Section 13(d) of the 1934 Act and the rules and regulations promulgated thereunder) of a number of Equity Interests
of a class that is registered under the 1934 Act which exceeds the Maximum Percentage (as defined below) of the Equity Interests
of such class that are outstanding at such time. Any purported delivery of Equity Interests in connection with the conversion
of this Note prior to the termination of this restriction in accordance herewith shall be void and have no effect to the extent
(but only to the extent) that such delivery would result in the Holder Group becoming the beneficial owner of more than the Maximum
Percentage of the Equity Interests of a class that is registered under the 1934 Act that is outstanding at such time. If any delivery
of Equity Interests owed to the Holder following conversion of this Note is not made, in whole or in part, as a result of this
limitation, the Company’s obligation to make such delivery shall not be extinguished and the Company shall deliver such
Equity Interests as promptly as practicable after the Holder gives notice to the Company that such delivery would not result in
such limitation being triggered or upon termination of the restriction in accordance with the terms hereof. To the extent limitations
contained in this Section 3.3 apply, the determination of whether this Note is convertible and of which portion of this
Note is convertible shall be the sole responsibility and in the sole determination of the Holder, and the submission of a notice
of conversion shall be deemed to constitute the Holder’s determination that the issuance of the full number of Conversion
Shares requested in the notice of conversion is permitted hereunder, and the Company shall not have any obligation to verify or
confirm the accuracy of such determination. For purposes of this Section 3.3, (i) the term “Maximum Percentage”
shall mean 4.99%; provided, that if at any time after the date hereof the Holder Group beneficially owns in excess of 4.99% of
any class of Equity Interests in the Company that is registered under the 1934 Act, then the Maximum Percentage shall automatically
increase to 9.99% so long as the Holder Group owns in excess of 4.99% of such class of Equity Interests (and shall, for the avoidance
of doubt, automatically decrease to 4.99% upon the Holder Group ceasing to own in excess of 4.99% of such class of Equity Interests);
and (ii) the term “Holder Group” shall mean the Holder plus any other Person with which the Holder is considered
to be part of a group under Section 13 of the 1934 Act or with which the Holder otherwise files reports under Sections 13 and/or
16 of the 1934 Act. In determining the number of Equity Interests of a particular class outstanding at any point in time, the
Holder may rely on the number of outstanding Equity Interests of such class as reflected in (x) the Company’s most recent
Annual Report on Form 10-K or Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission, as the case may
be, (y) a more recent public announcement by the Company or (z) a more recent notice by the Company or its transfer agent to the
Holder setting forth the number of Equity Interests of such class then outstanding. For any reason at any time, upon written or
oral request of the Holder, the Company shall, within one (1) Business Day of such request, confirm orally and in writing to the
Holder the number of Equity Interests of any class then outstanding. The provisions of this Section 3.3 shall be construed,
corrected and implemented in a manner so as to effectuate the intended beneficial ownership limitation herein contained.

 

    	 	10	 

     

    

 

3.4
Adjustment of Conversion Price.

 

(a)
Until the Note has been paid in full or converted in full, the Conversion Price shall be subject to adjustment from time to time
as follows (but shall not be increased, other than pursuant to Section 3.4(a)(i) hereof):

 

(i)
Adjustments for Stock Splits and Combinations. If the Maker shall at any time or from time to time after the Closing Date
(but whether before or after the Issuance Date) effect a split of the outstanding Common Stock, the applicable Conversion Price
in effect immediately prior to the stock split shall be proportionately decreased. If the Maker shall at any time or from time
to time after the Closing Date (but whether before or after the Issuance Date), combine the outstanding shares of Common Stock,
the applicable Conversion Price in effect immediately prior to the combination shall be proportionately increased. Any adjustments
under this Section 3.4(a)(i) shall be effective at the close of business on the date the stock split or combination occurs.

 

(ii)
Adjustments for Certain Dividends and Distributions. If the Maker shall at any time or from time to time after the Closing
Date (but whether before or after the Issuance Date) make or issue or set a record date for the determination of holders of Common
Stock entitled to receive a dividend or other distribution payable in shares of Common Stock, then, and in each event, the applicable
Conversion Price in effect immediately prior to such event shall be decreased as of the time of such issuance or, in the event
such record date shall have been fixed, as of the close of business on such record date, by multiplying the applicable Conversion
Price then in effect by a fraction:

 

(1)
the numerator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date; and

 

(2)
the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time
of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of
such dividend or distribution.

 

(iii)
Adjustment for Other Dividends and Distributions. If the Maker shall at any time or from time to time after the Closing
Date (but whether before or after the Issuance Date) make or issue or set a record date for the determination of holders of Common
Stock entitled to receive a dividend or other distribution payable in other than shares of Common Stock, then, and in each event,
an appropriate revision to the applicable Conversion Price shall be made and provision shall be made (by adjustments of the Conversion
Price or otherwise) so that the Holder of this Note shall receive upon conversions thereof, in addition to the number of shares
of Common Stock receivable thereon, the number of securities of the Maker or other issuer (as applicable) or other property that
it would have received had this Note been converted into Common Stock in full (without regard to any conversion limitations herein)
on the date of such event and had thereafter, during the period from the date of such event to and including the Conversion Date,
retained such securities (together with any distributions payable thereon during such period) or assets, giving application to
all adjustments called for during such period under this Section 3.4(a)(iii) with respect to the rights of the holders
of this Note; provided, however, that if such record date shall have been fixed and such dividend is not fully paid or
if such distribution is not fully made on the date fixed therefor, the Conversion Price shall be adjusted pursuant to this paragraph
as of the time of actual payment of such dividends or distributions.

 

    	 	11	 

     

    

 

(iv)
Adjustments for Reclassification, Exchange or Substitution. If the Common Stock at any time or from time to time after
the Closing Date (but whether before or after the Issuance Date) shall be changed to the same or different number of shares or
other securities of any class or classes of stock or other property, whether by reclassification, exchange, substitution or otherwise
(other than by way of a stock split or combination of shares or stock dividends provided for in Sections 3.4(a)(i), (ii) and
(iii) hereof, or a reorganization, merger, consolidation, or sale of assets provided for in Section 3.4(a)(v) hereof),
then, and in each event, an appropriate revision to the Conversion Price shall be made and provisions shall be made (by adjustments
of the Conversion Price or otherwise) so that the Holder shall have the right thereafter to convert this Note into the kind and
amount of shares of stock or other securities or other property receivable upon reclassification, exchange, substitution or other
change, by holders of the number of shares of Common Stock into which such Note might have been converted immediately prior to
such reclassification, exchange, substitution or other change, all subject to further adjustment as provided herein.

 

(v)
Adjustments for Issuance of Additional Shares of Common Stock. In the event the Maker shall at any time or from time to
time after the Closing Date (but whether before or after the Issuance Date) issue or sell any additional shares of Common Stock
(“Additional Shares of Common Stock”), other than (A) as provided in this Note (including the foregoing subsections
(i) through (iv) of this Section 3.4(a)), pursuant to any Equity Plan (including pursuant to Common Stock Equivalents granted
or issued under any Equity Plan), (B) pursuant to Common Stock Equivalents granted or issued prior to the Closing Date, or (C)
Exempted Securities, in any case, at an effective price per share that is less than the Conversion Price then in
effect or without consideration, then the Conversion Price upon each such issuance shall be reduced to a price equal to the consideration
per share paid for such Additional Shares of Common Stock. For purposes of clarification, the amount of consideration received
for such Additional Shares of Common Stock shall not include the value of any additional securities or other rights received in
connection with such issuance of Additional Shares of Common Stock (i.e. warrants, rights of first refusal or other similar rights).

 

(vi)
Issuance, Amendment or Adjustment of Common Stock Equivalents. Except for Exempted Securities, if (x) the Maker, at any
time after the Closing Date (but whether before or after the Issuance Date), shall issue any securities convertible into or exercisable
or exchangeable for, directly or indirectly, Common Stock (“Convertible Securities”), or any rights or warrants
or options to purchase any such Common Stock or Convertible Securities, other than Common Stock Equivalents granted or issued
under any Equity Plan (collectively with the Convertible Securities, the “Common Stock Equivalents”) and the
price per share for which shares of Common Stock may be issuable pursuant to any such Common Stock Equivalent shall be less
than the applicable Conversion Price then in effect, or (y) the price per share for which shares of Common Stock may be
issuable under any Common Stock Equivalents is amended or adjusted, pursuant to the terms of such Common Stock Equivalents or
otherwise, and such price as so amended or adjusted shall be less than the applicable Conversion Price in effect at the time of
such amendment or adjustment, then, in each such case (x) or (y), the applicable Conversion Price upon each such issuance or amendment
or adjustment shall be adjusted as provided in subsection (vi) of this Section 3.4(a) as if the maximum number of shares
of Common Stock issuable upon conversion, exercise or exchange of such Common Stock Equivalents had been issued on the date of
such issuance or amendment or adjustment.

 

    	 	12	 

     

    

 

(vii)
Consideration for Stock. In case any shares of Common Stock or any Common Stock Equivalents shall be issued or sold:

 

(1)
in connection with any merger or consolidation in which the Maker is the surviving corporation (other than any consolidation or
merger in which the previously outstanding shares of Common Stock of the Maker shall be changed to or exchanged for the stock
or other securities of another corporation), the amount of consideration therefor shall be, deemed to be the fair value, as determined
reasonably and in good faith by the Board of Directors of the Maker and approved by the Holder, of such portion of the assets
and business of the nonsurviving corporation as such Board of Directors may determine to be attributable to such shares of Common
Stock, Convertible Securities, rights or warrants or options, as the case may be; or

 

(2)
in the event of any consolidation or merger of the Maker in which the Maker is not the surviving corporation or in which the previously
outstanding shares of Common Stock of the Maker shall be changed into or exchanged for the stock or other securities of another
corporation or other property, or in the event of any sale of all or substantially all of the assets of the Maker for stock or
other securities or other property of any corporation, the Maker shall be deemed to have issued shares of its Common Stock, at
a price per share equal to the valuation of the Maker’s Common Stock based on the actual exchange ratio on which the transaction
was predicated, as applicable, and the fair market value on the date of such transaction of all such stock or securities or other
property of the other corporation. If any such calculation results in adjustment of the applicable Conversion Price, or the number
of shares of Common Stock issuable upon conversion of the Note, the determination of the applicable Conversion Price or the number
of shares of Common Stock issuable upon conversion of the Note immediately prior to such merger, consolidation or sale, shall
be made after giving effect to such adjustment of the number of shares of Common Stock issuable upon conversion of the Note. In
the event Common Stock is issued with other shares or securities or other assets of the Maker for consideration which covers both,
the consideration computed as provided in this Section 3.4(a)(vii) shall be allocated among such securities and assets
as determined in good faith by the Board of Directors of the Maker, and approved by the Holder.

 

(b)
Record Date. In case the Maker shall take record of the holders of its Common Stock for the purpose of entitling them to
subscribe for or purchase Common Stock or Convertible Securities, then the date of the issue or sale of the shares of Common Stock
shall be deemed to be such record date.

 

    	 	13	 

     

    

 

(c)
No Impairment. The Maker shall not, by amendment of its Articles of Incorporation or through any reorganization, transfer
of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid
the observance or performance of any of the terms to be observed or performed hereunder by the Maker, but will at all times in
good faith assist in the carrying out of all the provisions of this Section 3.4 and in the taking of all such action as
may be necessary or appropriate in order to protect the conversion rights of the Holder against impairment. In the event the Holder
shall elect to convert this Note as provided herein, the Maker cannot refuse conversion based on any claim that the Holder or
anyone associated or affiliated with the Holder has been engaged in any violation of law, violation of an agreement to which the
Holder is a party or for any reason whatsoever, unless, an injunction from a court, or notice, restraining and or adjoining conversion
of this Note shall have issued and the Maker posts a surety bond for the benefit of the Holder in an amount equal to one hundred
fifty percent (150%) of the Principal Amount of the Note plus any accrued interest the Holder has elected to convert, which bond
shall remain in effect until the completion of arbitration/litigation of the dispute and the proceeds of which shall be payable
to the Holder (as liquidated damages) in the event it obtains judgment.

 

(d)
Certificates as to Adjustments. Upon occurrence of each adjustment or readjustment of the Conversion Price or number of
shares of Common Stock issuable upon conversion of this Note pursuant to this Section 3.4, the Maker at its expense shall
promptly compute such adjustment or readjustment in accordance with the terms hereof and furnish to the Holder a certificate setting
forth such adjustment and readjustment, showing in detail the facts upon which such adjustment or readjustment is based. The Maker
shall, upon written request of the Holder, at any time, furnish or cause to be furnished to the Holder a like certificate setting
forth such adjustments and readjustments, the applicable Conversion Price in effect at the time, and the number of shares of Common
Stock and the amount, if any, of other securities or property which at the time would be received upon the conversion of this
Note. Notwithstanding the foregoing, the Maker shall not be obligated to deliver a certificate unless such certificate would reflect
an increase or decrease of at least one percent (1%) of such adjusted amount.

 

(e)
Issue Taxes. The Maker shall pay any and all issue and other taxes, excluding federal, state or local income taxes, that
may be payable in respect of any issue or delivery of shares of Common Stock on conversion of this Note pursuant thereto; provided,
however, that the Maker shall not be obligated to pay any transfer taxes resulting from any transfer requested by the Holder
in connection with any such conversion.

 

(f)
Fractional Shares. No fractional shares of Common Stock shall be issued upon conversion of this Note. In lieu of any fractional
shares to which the Holder would otherwise be entitled, the Maker shall pay cash equal such fractional shares multiplied by the
Conversion Price then in effect.

 

(g)
Reservation of Common Stock. The Maker shall at all while this Note shall be outstanding, reserve and keep available out
of its authorized but unissued Common Stock, such number of shares of Common Stock as shall from time to time be sufficient to
effect the conversion of this Note (disregarding for this purpose any and all limitations of any kind on such conversion). The
Maker shall, from time to time, increase the authorized number of shares of Common Stock or take other effective action if at
any time the unissued number of authorized shares shall not be sufficient to satisfy the Maker’s obligations under this
Section 3.4(g).

 

    	 	14	 

     

    

 

(h)
Regulatory Compliance. If any shares of Common Stock to be reserved for the purpose of conversion of this Note require
registration or listing with or approval of any governmental authority, stock exchange or other regulatory body under any federal
or state law or regulation or otherwise before such shares may be validly issued or delivered upon conversion, the Maker shall,
at its sole cost and expense, in good faith and as expeditiously as possible, secure such registration, listing or approval, as
the case may be.

 

(i)
Effect of Events Prior to the Issuance Date. If the Issuance Date of this Note is after the Closing Date, then, if the
Conversion Price or any other right of the Holder of this Note would have been adjusted or modified by operation of any provision
of this Note had this Note been issued on the Closing Date, such adjustment or modification shall be deemed to apply to this Note
as of the Issuance Date as if this Note had been issued on the Closing Date.

 

3.5
Prepayment Following an Event of Default.

 

(a)
Prepayment Upon an Event of Default. Notwithstanding anything to the contrary contained herein, following the occurrence
of an Event of Default, the Holder shall have the right, at the Holder’s option to require the Maker to prepay all or a
portion of this Note in cash at a price equal to the sum of one hundred five percent (105%) of the Outstanding Principal Amount
plus all accrued interest thereon (if any) (the “Cash Repayment Price”).

 

(b)
Mechanics of Prepayment at Option of Holder in Connection with a Change of Control. No sooner than fifteen (15) days prior
to entry into an agreement for a Change of Control nor later than ten (10) days prior to the consummation of a Change of Control,
but not prior to the public announcement of such Change of Control, the Maker shall deliver written notice (“Notice of
Change of Control”) to the Holder. At any time after receipt of a Notice of Change of Control (or, in the event a Notice
of Change of Control is not delivered at least ten (10) days prior to a Change of Control, at any time within ten (10) days prior
to a Change of Control), the Holder may require the Maker to prepay, effective immediately prior to the consummation of such Change
of Control, an amount equal to 105% of the Outstanding Principal Amount plus all accrued interest thereon (if any), by delivering
written notice thereof (“Notice of Prepayment at Option of Holder Upon Change of Control”) to the Maker, which
Notice of Prepayment at Option of Holder Upon Change of Control shall indicate the Principal Amount of the Note and any accrued
interest thereon that the Holder is electing to have prepaid, at the Cash Repayment Price.

 

(c)
Payment of Cash Repayment Price. Upon the Maker’s receipt of a Notice(s) of Prepayment at Option of Holder Upon Event
of Default or a Notice(s) of Prepayment at Option of Holder Upon Change of Control from the Holder, the Maker shall deliver the
Cash Repayment Price to the holder within five (5) Business Days after the Maker’s receipt of a Notice of Prepayment at
Option of Holder Upon Event of Default and, in the case of a prepayment pursuant to Section 3.5(b) hereof, the Maker shall
deliver the applicable Cash Repayment Price immediately prior to the consummation of the Change of Control; provided that the
Holder’s original Note shall have been so delivered to the Maker.

 

    	 	15	 

     

    

 

3.6
Inability to Fully Convert.

 

(a)
Holder’s Option if Maker Cannot Fully Convert. If, upon the Maker’s receipt of a Conversion Notice or as otherwise
required under this Note, the Maker cannot issue shares of Common Stock for any reason, including, without limitation, because
the Maker (x) does not have a sufficient number of shares of Common Stock authorized and available or (y) is otherwise prohibited
by applicable law or by the rules or regulations of any stock exchange, interdealer quotation system or other self-regulatory
organization with jurisdiction over the Maker or any of its securities from issuing all of the Common Stock which is to be issued
to the Holder pursuant to this Note, then the Maker shall issue as many shares of Common Stock as it is able to issue and, with
respect to the unconverted portion of this Note or with respect to any shares of Common Stock not timely issued in accordance
with this Note, the Holder, solely at Holder’s option, can elect to:

 

(i)
require the Maker to prepay that portion of this Note for which the Maker is unable to issue Common Stock or for which shares
of Common Stock were not timely issued (the “Mandatory Prepayment”) at a price equal to the number of shares
of Common Stock that the Maker is unable to issue multiplied by the VWAP on the date of conversion;

 

(ii)
void its Conversion Notice and retain or have returned, as the case may be, this Note that was to be converted pursuant to the
Conversion Notice (provided that the Holder’s voiding its Conversion Notice shall not affect the Maker’s obligations
to make any payments which have accrued prior to the date of such notice); or

 

(iii)
defer issuance of the applicable Conversion Shares until such time as the Maker can legally issue such shares; provided, that
if the Holder elects to defer the issuance of the Conversion Shares, it may exercise its rights under either clause (i) or (ii)
above at any time prior to the issuance of the Conversion Shares upon two (2) Business Days notice to the Maker.

 

(b)
Mechanics of Fulfilling Holder’s Election. The Maker shall immediately send to the Holder, upon receipt of a Conversion
Notice from the Holder, which cannot be fully satisfied as described in Section 3.6(a) above, a notice of the Maker’s
inability to fully satisfy the Conversion Notice (the “Inability to Fully Convert Notice”). Such Inability
to Fully Convert Notice shall indicate (i) the reason why the Maker is unable to fully satisfy the Holder’s Conversion Notice;
and (ii) the amount of this Note which cannot be converted. The Holder shall notify the Maker of its election pursuant to Section
3.6(a) above by delivering written notice to the Maker (“Notice in Response to Inability to Convert”).

 

    	 	16	 

     

    

 

(c)
Payment of Cash Repayment Price. If the Holder shall elect to have its Note prepaid pursuant to Section 3.6(a)(i)
above, the Maker shall pay the Cash Repayment Price to the Holder within five (5) Business Days of the Maker’s receipt of
the Holder’s Notice in Response to Inability to Convert; provided that prior to the Maker’s receipt of the Holder’s
Notice in Response to Inability to Convert the Maker has not delivered a notice to the Holder stating, to the satisfaction of
the Holder, that the event or condition resulting in the Mandatory Prepayment has been cured and all Conversion Shares issuable
to the Holder can and will be delivered to the Holder in accordance with the terms of this Note. If the Maker shall fail to pay
the applicable Cash Repayment Price to the Holder on the date that is one (1) Business Day following the Maker’s receipt
of the Holder’s Notice in Response to Inability to Convert, in addition to any remedy the Holder may have under this Note
and the Purchase Agreement, such unpaid amount shall bear interest at the rate of two percent (2%) per month (prorated for partial
months) until paid in full. Until the full Cash Repayment Price is paid in full to the Holder, the Holder may (i) void the Mandatory
Prepayment with respect to that portion of the Note for which the full Cash Repayment Price has not been paid and (ii) receive
back such Note.

 

(d)
No Rights as Stockholder. Nothing contained in this Note shall be construed as conferring upon the Holder, prior to the
conversion of this Note, the right to vote or to receive dividends or to consent or to receive notice as a stockholder in respect
of any meeting of stockholders for the election of directors of the Maker or of any other matter, or any other rights as a stockholder
of the Maker.

 

ARTICLE
4

 

4.1
Covenants. For so long as any Note is outstanding, without the prior written consent of the Holder:

 

(a)
Compliance with Transaction Documents. The Maker shall, and shall cause its Subsidiaries to, comply with its obligations
under this Note and the other Transaction Documents.

 

(b)
Payment of Taxes, Etc. The Maker shall, and shall cause each of its Subsidiaries to, promptly pay and discharge, or cause
to be paid and discharged, when due and payable, all lawful taxes, assessments and governmental charges or levies imposed upon
the income, profits, property or business of the Maker and the Subsidiaries, except for such failures to pay that, individually
or in the aggregate, have not had and would not reasonably be expected to have a Material Adverse Effect; provided, however ,
that any such tax, assessment, charge or levy need not be paid if the validity thereof shall currently be contested in good faith
by appropriate proceedings and if the Maker or such Subsidiaries shall have set aside on its books adequate reserves with respect
thereto, and provided, further, that the Maker and such Subsidiaries will pay all such taxes, assessments, charges or levies forthwith
upon the commencement of proceedings to foreclose any lien which may have attached as security therefor.

 

(c)
Corporate Existence. The Maker shall, and shall cause each of its Subsidiaries to, maintain in full force and effect its
corporate existence, rights and franchises and all licenses and other rights to use property owned or possessed by it and reasonably
deemed to be necessary to the conduct of its business.

 

    	 	17	 

     

    

 

(d)
Investment Company Act. The Maker shall conduct its businesses in a manner so that it will not become subject to, or required
to be registered under, the Investment Company Act of 1940, as amended.

 

(e)
Sale of Collateral; Liens. From the date hereof until the full release of the security interest in the Collateral, (i)
the Maker shall not sell, lease, transfer or otherwise dispose of any of the Collateral, or attempt or contract to do so, other
than sales of inventory in the ordinary course of business consistent with past practices; and (ii) the Maker shall not, directly
or indirectly, create, permit or suffer to exist, and shall defend the Collateral against and take such other action as is necessary
to remove, any lien, security interest or other encumbrance on the Collateral (except for the pledge, assignment and security
interest created under the Security Agreement and Permitted Liens (as defined in the Security Agreement)).

 

(f)
Prohibited Transactions. The Company hereby covenants and agrees not to enter into any Prohibited Transactions until thirty
(30) days after such time as this Note has been converted into Conversion Shares or repaid in full.

 

(g)
Repayment of This Note. If the Company issues any debt, including any subordinated debt or convertible debt (other than
this Note), or any preferred stock, unless otherwise agreed in writing by the Holder, the Company will immediately utilize the
proceeds of such issuance to repay this Note; provided, however, that this Section 4.1(g) shall not apply to the transactions
identified on Schedule 5.7 of the Securities Purchase Agreement.

 

4.2
Set-Off. This Note shall be subject to the set-off provisions set forth in the Purchase Agreement.

 

ARTICLE
5

 

5.1
Intercreditor Agreement. Anything herein to the contrary notwithstanding, the liens and security interests securing the
obligations evidenced by this Note, the exercise of any right or remedy with respect thereto, and certain of the rights of the
holder hereof are subject to the provisions of the Amended and Restated Intercreditor Agreement dated as of December [●],
2019 (as amended, restated, supplemented, or otherwise modified from time to time, the “Sallyport Intercreditor Agreement”),
by and between SALLYPORT COMMERCIAL FINANCE, LLC, as First Lien Creditor, and LIND GLOBAL MACRO FUND, L.P., as Second
Lien Creditor. In the event of any conflict between the terms of the Sallyport Intercreditor Agreement and this Note the terms
of the Sallyport Intercreditor Agreement shall govern and control.

 

5.2
Notices. Any and all notices or other communications or deliveries required or permitted to be provided hereunder shall
be in writing and shall be deemed given and effective on the earliest of (a) the date of transmission, if such notice or communication
is delivered via email at the email address specified in this Section prior to 5:00 p.m. (New York time) on a Business Day, (b)
the next Business Day after the date of transmission, if such notice or communication is delivered via email at the email address
specified in this Section on a day that is not a Business Day or later than 5:00 p.m. (New York time) on any date and earlier
than 11:59 p.m. (New York time) on such date, (c) the Business Day following the date of mailing, if sent by U.S. nationally recognized
overnight courier service, or (d) upon actual receipt by the party to whom such notice is required to be given. The addresses
for notice shall be as set forth in the Purchase Agreement.

 

    	 	18	 

     

    

 

5.3
Governing Law. This Agreement shall be governed by and construed in accordance with the Laws of the State of New York,
without reference to principles of conflict of laws or choice of laws. This Note shall not be interpreted or construed with any
presumption against the party causing this Note to be drafted.

 

5.4
Headings. Article and section headings in this Note are included herein for purposes of convenience of reference only and
shall not constitute a part of this Note for any other purpose.

 

5.5
Remedies, Characterizations, Other Obligations, Breaches and Injunctive Relief. The remedies provided in this Note shall
be cumulative and in addition to all other remedies available under this Note, at law or in equity (including, without limitation,
a decree of specific performance and/or other injunctive relief), no remedy contained herein shall be deemed a waiver of compliance
with the provisions giving rise to such remedy and nothing herein shall limit the Holder’s right to pursue actual damages
for any failure by the Maker to comply with the terms of this Note. Amounts set forth or provided for herein with respect to payments,
conversion and the like (and the computation thereof) shall be the amounts to be received by the holder thereof and shall not,
except as expressly provided herein, be subject to any other obligation of the Maker (or the performance thereof). The Maker acknowledges
that a breach by it of its obligations hereunder will cause irreparable and material harm to the Holder and that the remedy at
law for any such breach would be inadequate. Therefore, the Maker agrees that, in the event of any such breach or threatened breach,
the Holder shall be entitled, in addition to all other available rights and remedies, at law or in equity, to equitable relief,
including but not limited to an injunction restraining any such breach or threatened breach, without the necessity of showing
economic loss and without any bond or other security being required.

 

5.6
Enforcement Expenses. The Maker agrees to pay all costs and expenses of enforcement of this Note, including, without limitation,
reasonable attorneys’ fees and expenses.

 

5.7
Binding Effect. The obligations of the Maker and the Holder set forth herein shall be binding upon the successors and assigns
of each such party, whether or not such successors or assigns are permitted by the terms herein.

 

5.8
Amendments; Waivers. No provision of this Note may be waived or amended except in a written instrument signed by the Company
and the Holder. No waiver of any default with respect to any provision, condition or requirement of this Note shall be deemed
to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision, condition or
requirement hereof, nor shall any delay or omission of either party to exercise any right hereunder in any manner impair the exercise
of any such right.

 

    	 	19	 

     

    

 

5.9
Compliance with Securities Laws. The Holder of this Note acknowledges that this Note is being acquired solely for the Holder’s
own account and not as a nominee for any other party, and for investment, and that the Holder shall not offer, sell or otherwise
dispose of this Note in violation of securities laws. This Note and any Note issued in substitution or replacement therefor shall
be stamped or imprinted with a legend in substantially the following form:

 

“NEITHER
THIS NOTE NOR THE SECURITIES ISSUABLE UPON CONVERSION OF THIS NOTE HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION
OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF
COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.”

 

5.10
Jurisdiction; Venue. Any action, proceeding or claim arising out of, or relating in any way to this Agreement shall be
brought and enforced in the New York Supreme Court, County of New York, or in the United States District Court for the Southern
District of New York. The Company and the Holder irrevocably submit to the jurisdiction of such courts, which jurisdiction shall
be exclusive, and hereby waive any objection to such exclusive jurisdiction or that such courts represent an inconvenient forum.
The prevailing party in any such action shall be entitled to recover its reasonable and documented attorneys’ fees and out-of-pocket
expenses relating to such action or proceeding.

 

5.11
Parties in Interest. This Note shall be binding upon, inure to the benefit of and be enforceable by the Maker, the Holder
and their respective successors and permitted assigns.

 

5.12
Failure or Indulgence Not Waiver. No failure or delay on the part of the Holder in the exercise of any power, right or
privilege hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or privilege
preclude other or further exercise thereof or of any other right, power or privilege.

 

5.13
Maker Waivers. Except as otherwise specifically provided herein, the Maker and all others that may become liable for all
or any part of the obligations evidenced by this Note, hereby waive presentment, demand, notice of nonpayment, protest and all
other demands’ and notices in connection with the delivery, acceptance, performance and enforcement of this Note, and do
hereby consent to any number of renewals of extensions of the time or payment hereof and agree that any such renewals or extensions
may be made without notice to any such persons and without affecting their liability herein and do further consent to the release
of any person liable hereon, all without affecting the liability of the other persons, firms or Maker liable for the payment of
this Note, AND DO HEREBY WAIVE TRIAL BY JURY.

 

    	 	20	 

     

    

 

(a)
No delay or omission on the part of the Holder in exercising its rights under this Note, or course of conduct relating hereto,
shall operate as a waiver of such rights or any other right of the Holder, nor shall any waiver by the Holder of any such right
or rights on any one occasion be deemed a waiver of the same right or rights on any future occasion.

 

(b)
THE MAKER ACKNOWLEDGES THAT THE TRANSACTION OF WHICH THIS NOTE IS A PART IS A COMMERCIAL TRANSACTION, AND TO THE EXTENT ALLOWED
BY APPLICABLE LAW, HEREBY WAIVES ITS RIGHT TO NOTICE AND HEARING WITH RESPECT TO ANY PREJUDGMENT REMEDY WHICH THE HOLDER OR ITS
SUCCESSORS OR ASSIGNS MAY DESIRE TO USE.

 

5.14
Definitions. Capitalized terms used herein and not defined shall have the meanings set forth in the Purchase Agreement.
For the purposes hereof, the following terms shall have the following meanings:

 

(a)
“Indebtedness” means: (a) all obligations for borrowed money; (b) all obligations evidenced by bonds, debentures,
notes, or other similar instruments and all reimbursement or other obligations in respect of letters of credit, bankers acceptances,
current swap agreements, interest rate hedging agreements, interest rate swaps, or other financial products; (c) all capital lease
obligations that exceed $150,000 in the aggregate in any fiscal year; (d) all obligations or liabilities secured by a lien or
encumbrance on any asset of the Maker, irrespective of whether such obligation or liability is assumed; (e) all obligations for
the deferred purchase price of assets, together with trade debt and other accounts payable that exceed $150,000 in the aggregate
in any fiscal year; (f) all synthetic leases; (g) any obligation guaranteeing or intended to guarantee (whether directly or indirectly
guaranteed, endorsed, co-made, discounted or sold with recourse) any of the foregoing obligations of any other person; (h) trade
debt; and (i) endorsements for collection or deposit.

 

(b)
“Outstanding Principal Amount” means, at the time of determination, the Principal Amount outstanding after
giving effect to any conversions or prepayments pursuant to the terms hereof.

 

(c)
“Repayment Shares” means shares of Common Stock issued to the Holder by the Maker as payment for accrued interest
and/or the Principal Amount, pursuant to Sections 1.3(a) and 1.3(b) of this Note.

 

(d)
“Repayment Share Price” means ninety percent (90%) of the average of the five (5) lowest daily VWAPs during
the twenty (20) Trading Days prior to the issuance of the Repayment Shares.

 

(e)
“Trading Day” means a day on which the Common Stock is traded on a Trading Market.

 

(f)
“VWAP” means, as of any date, the price determined by the first of the following clauses that applies: (a)
if the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of one share of Common
Stock trading in the ordinary course of business on the applicable Trading Price for such date (or the nearest preceding date)
on such Trading Market as reported by Bloomberg Financial L.P.; (b) if the Common Stock is not then listed on a Trading Market
and if the Common Stock is traded in the over-the-counter market, as reported by the OTC Bulletin Board, the volume weighted average
price of one share of Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, as reported by Bloomberg
Financial L.P.; (c) if the Common Stock is not then listed or quoted on the OTC Bulletin Board and if prices for the Common Stock
is then reported in the “Pink Sheets” published by the Pink OTC Markets Inc. (or a similar organization or agency
succeeding to its functions of reporting prices), the most recent bid price of one share of Common Stock so reported, as reported
by Bloomberg Financial L.P.; or (d) in all other cases, the fair market value of one share of Common Stock as determined by an
independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company (in each case rounded to four
decimal places).

 

[Signature
Pages Follow]

 

    	21

     

    

 

IN
WITNESS WHEREOF, the Maker has caused this Note to be duly executed by its duly authorized officer as of the date first above
indicated.

 

	 	BOXLIGHT
    CORPORATION
	 	 	 
	 	By:	/s/
    Michael Pope
	 	Name:	Michael
    Pope
	 	Title:	President

 

    	 	 	 

     

    

 

SCHEDULE
1 

 

INTEREST
PAYMENT DATES AND PAYMENT DATES

 

    	 	 	 

     

    

 

EXHIBIT
A 

 

WIRE
INSTRUCTIONS

 

	Name
    of Bank: 	 	
	Routing
    #:	 	
	For
    credit to:	 	Lind
    Global Macro Fund LP
	Account
    #:	 	

 

    	 	 	 

     

    

 

EXHIBIT
B

 

FORM
OF CONVERSION NOTICE

 

(To
be Executed by the Registered Holder in order to Convert the Note)

 

The
undersigned hereby irrevocably elects to convert $ ________________ of the principal amount [and $_____ of accrued interest] of
the above Note No. ___ into shares of Common Stock of Boxlight Corporation (the “Maker”) according to the conditions
hereof, as of the date written below.

 

Date
of Conversion:

 

Conversion
Price:

 

Number
of shares of Common Stock beneficially owned or deemed beneficially owned by the Holder on the Conversion Date:

 

	 	[HOLDER]
	 	 	 
	 	By:
    	 
	 	Name:	 
	 	Title:	 
	 	 	 
	 	Address:Exhibit
10.3

 

AMENDED
AND RESTATED SECURITY AGREEMENT

 

SECURITY
AGREEMENT (this “Agreement”), dated as of December 13, 2019, by and between BOXLIGHT CORPORATION, a
Nevada corporation (the “Company”) and LIND GLOBAL MACRO FUND, LP (the “Secured Party”).

 

WHEREAS,
the Company and the Secured Party have entered into (a) that certain Securities Purchase Agreement dated as of March 22, 2019
(as amended and in effect from time to time, the “Initial SPA”); and (b) that certain Secured Convertible Promissory
Note dated as of March 22, 2019 (as amended and in effect from time to time, the “Initial Note); and

 

WHEREAS,
the Company has granted to the Secured Party a security interest and lien on substantially all of its assets in order to secure
the payment and performance of the Company’s obligations to the Secured Party under the Initial SPA and the Initial Note
pursuant to that certain Security Agreement dated as of March 22, 2019 by and between the Company and the Secured Party (as amended
and in effect from time to time, the “Original Security Agreement”); and

 

WHEREAS,
the Company and the Secured Party are entering into (a) that certain Securities Purchase Agreement dated as of the date hereof
(as amended and in effect from time to time, the “Second SPA” and, collectively with the Initial SPA, the “SPAs”
and each, individually, a “SPA”); and (b) that certain Secured Convertible Promissory Note dated as of the
date hereof (as amended and in effect from time to time, the “Second Note” and, collectively with the Initial
Note, the “Notes” and each, individually, a “Note”);

 

WHEREAS,
each of the Company and the Secured Party wishes to continue and reaffirm the grants of liens and security interests by the Company
in favor of the Secured Party under the Original Security Agreement and, to the extent not covered in the Original Security Agreement,
grant liens in favor of the Secured Party; and

 

WHEREAS,
it is a condition precedent to the Secured Party agreeing to make loans or otherwise extend credit to the Company under the Second
SPA and the Second Note that the Company execute and deliver to the Secured Party an amended and restated security agreement in
substantially the form hereof; and

 

WHEREAS,
the parties hereto now wish to amend and restate the Original Security Agreement in substantially the form hereof, which shall
amend and restate in its entirety the Original Security Agreement;

 

NOW,
THEREFORE, in consideration of the promises contained herein and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

1.
Definitions.
All capitalized terms used herein without definitions shall have the respective meanings provided therefor in the Second SPA.
All terms defined in the Uniform Commercial Code of the State (as hereinafter defined) and used herein shall have the same definitions
herein as specified therein, however, if a term is defined in Article 9 of the Uniform Commercial Code of the State differently
than in another Article of the Uniform Commercial Code of the State, the term has the meaning specified in Article 9, and the
following terms shall have the following meanings:

 

“Event
of Default” means the occurrence of any “Event of Default” under and as defined in each of the Initial SPA,
the Initial Note, the Second SPA or the Second Note, or the failure of the Company to comply with any term or covenant of any
Transaction Document (including this Agreement) to which it is a party.

 

    	 	 	 

     

    

 

“Future
ABL Agreement” means that certain loan agreement entered into after March 22, 2019 between the Company and the Future
ABL Lender containing commercially reasonable terms and conditions that are reasonably acceptable to the Secured Party.

 

“Future
ABL Collateral” means those assets of the Company which the Company has granted a Lien in favor of the Future ABL Lender
pursuant to the terms of the Future ABL Agreement, and which assets are subject to the Future ABL Intercreditor Agreement.

 

“Future
ABL Intercreditor Agreement” means an intercreditor agreement to be entered into after March 22, 2019 among the Company,
the Secured Party and the Future ABL Lender pertaining to the Future ABL Collateral, which agreement shall be in form and substance
satisfactory to the Secured Party (provided, if such agreement is substantially the same as the Sallyport Intercreditor Agreement,
such agreement shall be deemed to be satisfactory to the Secured Party).

 

“Future
ABL Lender” means a asset-backed lender (which may include a commercial finance company, hedge fund or commercial banking
institution) which provides an asset backed lending facility to the Company under the Future ABL Agreement.

 

“Future
ABL Liens” means any Liens granted by the Company on the Future ABL Collateral in favor of the ABL Lender pursuant to
the Future ABL Agreement

 

“Intercreditor
Agreements” means, collectively, (a) the Sallyport Intercreditor Agreement and (b) the Future ABL Intercreditor Agreement.

 

“Lien”
means any mortgage, charge, pledge, hypothecation, security interest, assignment by way of security, lien (statutory or otherwise),
encumbrance, conditional sale agreement, capital lease, financing lease, deposit arrangement, title retention agreement, and any
other agreement, trust or arrangement that in substance secures payment or performance of an obligation.

 

“Obligations”
means, collectively, (a) all debts, liabilities and obligations, present or future, direct or indirect, absolute or contingent,
matured or unmatured, at any time or from time to time due or accruing due and owing by or otherwise payable by the Company to
the Secured Party in any currency, under, in connection with or pursuant to the any Transaction Document (including, without limitation,
this Agreement), and whether incurred by the Company alone or jointly with another or others and whether as principal, guarantor
or surety and in whatever name or style and (b) all expenses, costs and charges incurred by or on behalf of the Secured Party
in connection with any Transaction Document (including this Agreement) or the Collateral, including all legal fees, court costs,
receiver’s or agent’s remuneration and other expenses of taking possession of, repairing, protecting, insuring, preparing
for disposition, realizing, collecting, selling, transferring, delivering or obtaining payment for the Collateral, and of taking,
defending or participating in any action or proceeding in connection with any of the foregoing matters or otherwise in connection
with the Secured Party’s interest in any Collateral, whether or not directly relating to the enforcement of this Agreement
or any other Transaction Document.

 

    	 	 	 

     

    

 

“Permitted
Lien” means any of the following: (a) mechanics and materialman Liens and other statutory Liens (including Liens for
taxes, fees, assessments and other governmental charges or levies) in respect of any amount (i) which is not at the time overdue
or (ii) which may be overdue but the validity of which is being contested at the time in good faith by appropriate proceedings,
in each case so long as the holder of such Lien has not taken any action to foreclose or otherwise exercise any remedies with
respect to such Lien; (b) the Sallyport Liens; (c) the Future ABL Liens; and (d) Liens which are permitted in writing by the Secured
Party in its sole and absolute discretion.

 

“Sallyport”
means Sallyport Commercial Finance, LLC.

 

“Sallyport
Agreement” means that certain Account Sale and Purchase Agreement dated as of September 5, 2017 between Sallyport and
the Company.

 

“Sallyport
Collateral” means those assets of the Company that comprise the “Collateral” as such term is defined in
the Sallyport Agreement.

 

“Sallyport
Intercreditor Agreement” means that certain Amended and Restated Intercreditor Agreement dated as of the date hereof
by and among the Company, the Secured Party and Sallyport, as the same may be amended, restated and/or modified from time to time.

 

“Sallyport
Liens” means the Liens granted by the Company on the Sallyport Collateral in favor of Sallyport pursuant to the Sallyport
Agreement.

 

“State”
means the State of New York.

 

“Transaction
Document” means any “Transaction Document” as defined under each SPA, and “Transaction Documents”
means all “Transaction Documents” as defined in the Initial SPA and all “Transaction Documents” as defined
in the Second SPA.

 

2.
Grant of Security Interest.

 

2.1.
Grant; Collateral Description. (a) The Company hereby ratifies and affirms the grant of security interests made pursuant
to the Original Security Agreement, and (b) in addition, the Company hereby grants to the Secured Party, to secure the payment
and performance in full of all of the Obligations, a security interest in and pledges and assigns to the Secured Party the following
properties, assets and rights of the Company, wherever located, whether now owned or hereafter acquired or arising, and all proceeds
and products thereof (all of the same being hereinafter called the “Collateral”): all personal and fixture
property of every kind and nature including all goods (including inventory, equipment and any accessions thereto), instruments
(including promissory notes), documents (whether tangible or electronic), accounts (including health-care-insurance receivables),
chattel paper (whether tangible or electronic), deposit accounts, letter-of-credit rights (whether or not the letter of credit
is evidenced by a writing), commercial tort claims, securities and all other investment property, supporting obligations, any
other contract rights or rights to the payment of money, insurance claims and proceeds, and all general intangibles (including
all payment intangibles).

 

    	 	 	 

     

    

 

2.2.
Commercial Tort Claims. The Secured Party acknowledges that the attachment of its security interest in any commercial
tort claim as original collateral is subject to the Company’s compliance with §4.7.

 

3.
Authorization to File Financing Statements.
The Company hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any filing office in
any Uniform Commercial Code jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral
(i) as all assets of the Company or words of similar effect, regardless of whether any particular asset comprised in the Collateral
falls within the scope of Article 9 of the Uniform Commercial Code of the State or such jurisdiction, or (ii) as being of an equal
or lesser scope or with greater detail, and (b) provide any other information required by part 5 of Article 9 of the Uniform Commercial
Code of the State or such other jurisdiction for the sufficiency or filing office acceptance of any financing statement or amendment,
including whether the Company is an organization, the type of organization and any organizational identification number issued
to the Company. The Company agrees to furnish any such information to the Secured Party promptly upon the Secured Party’s
reasonable request.

 

4.
Other Actions.
Further to insure the attachment, perfection and first priority of (or, to the extent any Intercreditor Agreement is in full force
and effect, second priority of), and the ability of the Secured Party to enforce, the Secured Party’s security interest
in the Collateral, the Company agrees, in each case at the Company’s expense, to take the following actions with respect
to the following Collateral and without limitation on the Company’s other obligations contained in this Agreement:

 

4.1.
Promissory Notes and Tangible Chattel Paper. Subject in all cases to the terms of any applicable Intercreditor
Agreement, if the Company shall, now or at any time hereafter, hold or acquire any promissory notes or tangible chattel paper
with an aggregate value for all such promissory notes or tangible chattel paper in excess of $50,000, the Company shall forthwith
endorse, assign and deliver the same to the Secured Party, accompanied by such instruments of transfer or assignment duly executed
in blank as the Secured Party may from time to time specify.

 

    	 	 	 

     

    

 

4.2.
Deposit Accounts. Subject in all cases to the terms of any applicable Intercreditor Agreement, for each deposit account
that the Company, now or at any time hereafter, opens or maintains the Company shall, at the Secured Party’s request and
option, pursuant to an agreement in form and substance satisfactory to the Secured Party, either (a) cause the depositary bank
to agree to comply without further consent of the Company, at any time with instructions from the Secured Party to such depositary
bank directing the disposition of funds from time to time credited to such deposit account, or (b) arrange for the Secured Party
to become the customer of the depositary bank with respect to the deposit account, with the Company being permitted, only with
the consent of the Secured Party, to exercise rights to withdraw funds from such deposit account. The Secured Party agrees with
the Company that the Secured Party shall not give any such instructions or withhold any withdrawal rights from the Company, unless
an Event of Default has occurred and is continuing, or, if effect were given to any withdrawal not otherwise permitted by the
Transaction Documents, would occur. The provisions of this paragraph shall not apply to any deposit accounts specially and exclusively
used for payroll, payroll taxes and other employee wage and benefit payments to or for the benefit of the Company’s salaried
employees.

 

4.3.
Investment Property. Subject in all cases to the terms of any applicable Intercreditor Agreement, if the Company
shall, now or at any time hereafter, hold or acquire any certificated securities, the Company shall forthwith endorse, assign
and deliver the same to the Secured Party, accompanied by such instruments of transfer or assignment duly executed in blank as
the Secured Party may from time to time specify. If any securities now or hereafter acquired by the Company are uncertificated
and are issued to the Company or its nominee directly by the issuer thereof, the Company shall promptly (but in any event within
two Business Days) notify the Secured Party thereof and, at the Secured Party’s request and option, pursuant to an agreement
in form and substance satisfactory to the Secured Party, either (a) cause the issuer to agree to comply without further consent
of the Company or such nominee, at any time with instructions from the Secured Party as to such securities, or (b) arrange for
the Secured Party to become the registered owner of the securities. If any securities, whether certificated or uncertificated,
or other investment property now or hereafter acquired by the Company are held by the Company or its nominee through a securities
intermediary or commodity intermediary, the Company shall promptly (but in any event within two Business Days) notify the Secured
Party thereof and, at the Secured Party’s request and option, pursuant to an agreement in form and substance satisfactory
to the Secured Party, either (i) cause such securities intermediary or (as the case may be) commodity intermediary to agree to
comply, in each case without further consent of the Company or such nominee, at any time with entitlement orders or other instructions
from the Secured Party to such securities intermediary as to such securities or other investment property, or (as the case may
be) to apply any value distributed on account of any commodity contract as directed by the Secured Party to such commodity intermediary,
or (ii) in the case of financial assets or other investment property held through a securities intermediary, arrange for the Secured
Party to become the entitlement holder with respect to such investment property, with the Company being permitted, only with the
consent of the Secured Party, to exercise rights to withdraw or otherwise deal with such investment property. The Secured Party
agrees with the Company that the Secured Party shall not give any such entitlement orders or instructions or directions to any
such issuer, securities intermediary or commodity intermediary, and shall not withhold its consent to the exercise of any withdrawal
or dealing rights by the Company, unless an Event of Default has occurred and is continuing, or, after giving effect to any such
investment and withdrawal rights not otherwise permitted by the Transaction Documents, would occur. The provisions of this paragraph
shall not apply to any financial assets credited to a securities account for which the Secured Party is the securities intermediary.

 

    	 	 	 

     

    

 

4.4.
Collateral in the Possession of a Bailee. Subject in all cases to the terms of any applicable Intercreditor
Agreement, if any Collateral with an aggregate value in excess of $100,000 is, now or at any time hereafter, in the possession
of a bailee, the Company shall promptly notify the Secured Party thereof and, at the Secured Party’s reasonable request
and option, shall promptly obtain an acknowledgement from the bailee, in form and substance satisfactory to the Secured Party,
that the bailee holds such Collateral for the benefit of the Secured Party and such bailee’s agreement to comply, without
further consent of the Company, at any time with instructions of the Secured Party as to such Collateral.

 

4.5.
Electronic Chattel Paper, Electronic Documents and Transferable Records. Subject in all cases to the terms of any applicable
Intercreditor Agreement, if the Company, now or at any time hereafter, holds or acquires an interest in any Collateral that is
electronic chattel paper, any electronic document or any “transferable record,” as that term is defined in Section
201 of the federal Electronic Signatures in Global and National Commerce Act, or in §16 of the Uniform Electronic Transactions
Act as in effect in any relevant jurisdiction, the Company shall promptly notify the Secured Party thereof and, at the request
and option of the Secured Party, shall take such action as the Secured Party may reasonably request to vest in the Secured Party
control, under §9-105 of the Uniform Commercial Code of the State or any other relevant jurisdiction, of such electronic
chattel paper, control, under §7-106 of the Uniform Commercial Code of the State or any other relevant jurisdiction, of such
electronic document or control, under Section 201 of the federal Electronic Signatures in Global and National Commerce Act or,
as the case may be, §16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such transferable
record. The Secured Party agrees with the Company that the Secured Party will arrange, pursuant to procedures satisfactory to
the Secured Party and so long as such procedures will not result in the Secured Party’s loss of control, for the Company
to make alterations to the electronic chattel paper, electronic document or transferable record permitted under UCC §9-105,
UCC §7-106, or, as the case may be, Section 201 of the federal Electronic Signatures in Global and National Commerce Act
or §16 of the Uniform Electronic Transactions Act for a party in control to make without loss of control, unless an Event
of Default has occurred and is continuing or would occur after taking into account any action by the Company with respect to such
electronic chattel paper, electronic document or transferable record. The provisions of this §4.5 relating to electronic
documents and “control” under UCC §7-106 apply in the event that the 2003 revisions to Article 7, with amendments
to Article 9, of the Uniform Commercial Code, in substantially the form approved by the American Law Institute and the National
Conference of Commissioners on Uniform State Laws, are now or hereafter adopted and become effective in the State or in any other
relevant jurisdiction.

 

    	 	 	 

     

    

 

4.6.
Letter-of-Credit Rights. Subject in all cases to the terms of any applicable Intercreditor Agreement, if the Company
is, now or at any time hereafter, a beneficiary under a letter of credit with a stated amount in excess of $25,000, or if the
Company is a beneficiary under letters of credit not assigned to the Secured Party with an aggregate stated amount in excess of
$50,000, the Company shall promptly notify the Secured Party thereof and, at the request and option of the Secured Party, the
Company shall, pursuant to an agreement in form and substance satisfactory to the Secured Party, either (a) arrange for the issuer
and any confirmer of such letter of credit to consent to an assignment to the Secured Party of the proceeds of the letter of credit
or (b) arrange for the Secured Party to become the transferee beneficiary of the letter of credit.

 

4.7.
Commercial Tort Claims. Subject in all cases to the terms of any applicable Intercreditor Agreement, if the
Company shall, now or at any time hereafter, hold or acquire a commercial tort claim, the Company shall promptly notify the Secured
Party in a writing signed by the Company of the particulars thereof and grant to the Secured Party in such writing a security
interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance
satisfactory to the Secured Party.

 

4.8.
Other Actions as to any and all Collateral. The Company further agrees, upon the request of the Secured Party and at
the Secured Party’s option, to take any and all other actions as the Secured Party may determine to be necessary or useful
for the attachment, perfection and first priority of (or, to the extent any Intercreditor Agreement is in full force and effect,
second priority of), and the ability of the Secured Party to enforce, the Secured Party’s security interest in any and all
of the Collateral, including (a) executing, delivering and, where appropriate, filing financing statements and amendments relating
thereto under the Uniform Commercial Code of any relevant jurisdiction, to the extent, if any, that the Company’s signature
thereon is required therefor, (b) causing the Secured Party’s name to be noted as secured party on any certificate of title
for a titled good if such notation is a condition to attachment, perfection or priority of, or ability of the Secured Party to
enforce, the Secured Party’s security interest in such Collateral, (c) complying with any provision of any statute, regulation
or treaty of the United States as to any Collateral if compliance with such provision is a condition to attachment, perfection
or priority of, or ability of the Secured Party to enforce, the Secured Party’s security interest in such Collateral, (d)
obtaining governmental and other third party waivers, consents and approvals, in form and substance satisfactory to the Secured
Party, including any consent of any licensor, lessor or other person obligated on Collateral, (e) obtaining waivers from mortgagees
and landlords in form and substance satisfactory to the Secured Party and (f) taking all actions under any earlier versions of
the Uniform Commercial Code or under any other law, as reasonably determined by the Secured Party to be applicable in any relevant
Uniform Commercial Code or other jurisdiction, including any foreign jurisdiction.

 

    	 	 	 

     

    

 

5.
Representations and Warranties Concerning
a Company’s Legal Status. The Company has, on March
22, 2019, delivered to the Secured Party a certificate signed by the Company and entitled “Perfection Certificate”
(the “Perfection Certificate”). The Company represents and warrants to the Secured Party as follows: as of
the date hereof (a) the Company’s exact legal name is that indicated on the Perfection Certificate and on the signature
page hereof, (b) the Company is an organization of the type, and is organized in the jurisdiction, set forth in the Perfection
Certificate, (c) the Perfection Certificate accurately sets forth the Company’s organizational identification number or
accurately states that the Company has none, (d) the Perfection Certificate accurately sets forth the Company’s place of
business or, if more than one, its chief executive office, as well as the Company’s mailing address, if different, (e) all
other information set forth on the Perfection Certificate pertaining to the Company is accurate and complete, and (f) there has
been no change in any of such information since the date on which the Perfection Certificate was signed by the Company.

 

6.
Covenants Concerning Company’s
Legal Status. The Company covenants with the Secured Party
as follows: (a) without providing at least thirty (30) days prior written notice to the Secured Party, the Company will not change
its name, its place of business or, if more than one, chief executive office, or its mailing address or organizational identification
number if it has one, (b) if the Company does not have an organizational identification number and later obtains one, the Company
will forthwith notify the Secured Party of such organizational identification number, and (c) the Company will not change its
type of organization, jurisdiction of organization or other legal structure.

 

7.
Representations and Warranties Concerning
Collateral, Etc. The Company further represents and warrants
to the Secured Party as follows: (a) the Company is the owner of or has other rights in or power to transfer the Collateral, free
from any right or claim of any person or any adverse lien, except for the security interest created by this Agreement and the
Permitted Liens, (b) none of the account debtors or other persons obligated on any of the Collateral is a governmental authority
covered by the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral,
(c) the Company holds no commercial tort claim except as indicated on the Company’s Perfection Certificate, (d) all other
information set forth on the Company’s Perfection Certificate pertaining to the Collateral is accurate and complete, and
(e) there has been no change in any of such information since the date on which the Company’s Perfection Certificate was
signed by the Company.

 

    	 	 	 

     

    

 

8.
Covenants Concerning Collateral, Etc.
The Company further covenants with the Secured Party as follows: (a) other than inventory sold in the ordinary course of business
consistent with past practices, and except as provided in any applicable Intercreditor Agreement, the Collateral, to the extent
not delivered to the Secured Party pursuant to §4, will be kept at those locations listed on the Perfection Certificate and
the Company will not remove the Collateral from such locations, without providing at least thirty (30) days prior written notice
to the Secured Party, (b) except for the security interest herein granted, the Company shall be the owner of or have other rights
in the Collateral free from any right or claim of any other person or any Lien (other than Permitted Liens), and the Company shall
defend the same against all claims and demands of all persons at any time claiming the same or any interests therein adverse to
the Secured Party, (c) other than the Secured Party, the Sallyport Lender or the Future ABL Lender (in each case to the extent
an Intercreditor Agreement has been entered into and is in full force and effect) with respect to any applicable Permitted Lien,
the Company shall not pledge, mortgage or create, or suffer to exist any right of any person in or claim by any person to the
Collateral, or any Lien in the Collateral in favor of any person, or become bound (as provided in Section 9-203(d) of the Uniform
Commercial Code of the State or any other relevant jurisdiction or otherwise) by a security agreement in favor of any person as
secured party, (d) the Company will permit the Secured Party, or its designee, to inspect the Collateral at any reasonable time,
wherever located, (e) the Company will pay promptly when due all taxes, assessments, governmental charges and levies upon the
Collateral or incurred in connection with the use or operation of the Collateral or incurred in connection with this Agreement,
and (f) the Company will not sell or otherwise dispose, or offer to sell or otherwise dispose, of the Collateral, or any interest
therein except for, with respect to the Collateral, so long as no Event of Default has occurred and is continuing, dispositions
of obsolete or worn-out property, the granting of non-exclusive licenses in the ordinary course of business, and the sale of inventory
in the ordinary course of business consistent with past practices.

 

9.
Collateral Protection Expenses; Preservation
of Collateral.

 

9.1.
Expenses Incurred by Secured Party. In the Secured Party’s discretion, the Secured Party may discharge taxes
and other encumbrances at any time levied or placed on any of the Collateral, and pay any necessary filing fees or insurance premiums,
in each case if the Company fails to do so. The Company agrees to reimburse the Secured Party on demand for all expenditures so
made. The Secured Party shall have no obligation to the Company to make any such expenditures, nor shall the making thereof be
construed as a waiver or cure of any Event of Default.

 

9.2.
Secured Party’s Obligations and Duties. Anything herein to the contrary notwithstanding, the Company shall remain
obligated and liable under each contract or agreement comprised in the Collateral to be observed or performed by the Company thereunder.
The Secured Party shall not have any obligation or liability under any such contract or agreement by reason of or arising out
of this Agreement or the receipt by the Secured Party of any payment relating to any of the Collateral, nor shall the Secured
Party be obligated in any manner to perform any of the obligations of the Company under or pursuant to any such contract or agreement,
to make inquiry as to the nature or sufficiency of any payment received by the Secured Party in respect of the Collateral or as
to the sufficiency of any performance by any party under any such contract or agreement, to present or file any claim, to take
any action to enforce any performance or to collect the payment of any amounts which may have been assigned to the Secured Party
or to which the Secured Party may be entitled at any time or times. The Secured Party’s sole duty with respect to the custody,
safe keeping and physical preservation of the Collateral in its possession, under §9-207 of the Uniform Commercial Code of
the State or otherwise, shall be to deal with such Collateral in the same manner as the Secured Party deals with similar property
for its own account.

 

    	 	 	 

     

    

 

10.
Securities and Deposits.
Subject in all cases to the terms of any applicable Intercreditor Agreement, the Secured Party may at any time following and during
the continuance of a payment default or an Event of Default, at its option, transfer to itself or any nominee any securities
constituting Collateral, receive any income thereon and hold such income as additional Collateral or apply it to the Obligations.
Whether or not any Obligations are due, the Secured Party may, subject to the terms of any applicable Intercreditor Agreement,
following and during the continuance of a payment default or an Event of Default demand, sue for, collect, or make any settlement
or compromise which it deems desirable with respect to the Collateral. Regardless of the adequacy of Collateral or any other security
for the Obligations, but subject in all cases to any applicable Intercreditor Agreement, any deposits or other sums at any time
credited by or due from the Secured Party to the Company may at any time be applied to or set off against any of the Obligations
then due and owing.

 

11.
Notification to Account Debtors and
Other Persons Obligated on Collateral. If an Event of Default
shall have occurred and be continuing, but subject in all cases to the terms of any applicable Intercreditor Agreement:

 

(a)
the Company shall, at the request and option of the Secured Party, notify account debtors and other persons obligated on any of
the Collateral of the security interest of the Secured Party in any account, chattel paper, general intangible, instrument or
other Collateral and that payment thereof is to be made directly to the Secured Party or to any financial institution designated
by the Secured Party as the Secured Party’s agent therefor;

 

(b)
the Secured Party may itself, without notice to or demand upon the Company, so notify account debtors and other persons obligated
on Collateral;

 

(c)
after the making of such a request or the giving of any such notification, the Company shall hold any proceeds of collection of
accounts, chattel paper, general intangibles, instruments and other Collateral received by the Company as trustee for the Secured
Party, for the benefit of the Secured Party, without commingling the same with other funds of the Company and shall turn the same
over to the Secured Party in the identical form received, together with any necessary endorsements or assignments; and

 

(d)
the Secured Party shall apply the proceeds of collection of accounts, chattel paper, general intangibles, instruments and other
Collateral and received by the Secured Party to the payment of the Obligations, such proceeds to be immediately credited after
final payment in cash or other immediately available funds of the items giving rise to them.

 

    	 	 	 

     

    

 

12.
Power of Attorney.

 

12.1.
Appointment and Powers of Secured Party. The Company hereby irrevocably constitutes and appoints the Secured Party
and any officer or agent thereof, with full power of substitution, as its true and lawful attorneys-in-fact with full irrevocable
power and authority in the place and stead of the Company or in the Secured Party’s own name, for the purpose of carrying
out the terms of this Agreement, to take any and all appropriate action and to execute any and all documents and instruments that
may be necessary or useful to accomplish the purposes of this Agreement and, without limiting the generality of the foregoing,
hereby gives said attorneys the power and right, on behalf of the Company, without notice to or assent by the Company, to do the
following:

 

(a)
upon the occurrence and during the continuance of an Event of Default, but subject in all cases to the terms of any applicable
Intercreditor Agreement, generally to sell, transfer, pledge, make any agreement with respect to or otherwise dispose of or deal
with any of the Collateral in such manner as is consistent with the Uniform Commercial Code of the State or any other relevant
jurisdiction and as fully and completely as though the Secured Party were the absolute owner thereof for all purposes, and to
do, at the Company’s expense, at any time, or from time to time, all acts and things which the Secured Party deems necessary
or useful to protect, preserve or realize upon the Collateral and the Secured Party’s security interest therein, in order
to effect the intent of this Agreement, all no less fully and effectively as the Company might do, including (i) upon written
notice to the Company, the exercise of voting rights with respect to voting securities, which rights may be exercised, if the
Secured Party so elects, with a view to causing the liquidation of assets of the issuer of any such securities and (ii) the execution,
delivery and recording, in connection with any sale or other disposition of any Collateral, of the endorsements, assignments or
other instruments of conveyance or transfer with respect to such Collateral; and

 

(b)
to the extent that the Company’s authorization given in §3 is not sufficient, to file such financing statements with
respect hereto, with or without the Company’s signature, or a photocopy of this Agreement in substitution for a financing
statement, as the Secured Party may deem appropriate and to execute in the Company’s name such financing statements and
amendments thereto and continuation statements which may require the Company’s signature.

 

12.2.
Ratification by Company. To the extent permitted by law, the Company hereby ratifies all that said attorneys shall
lawfully do or cause to be done by virtue hereof. This power of attorney is a power coupled with an interest and is irrevocable.

 

12.3.
No Duty on Secured Party. The powers conferred on the Secured Party hereunder are solely to protect the interests of
the Secured Party in the Collateral and shall not impose any duty upon the Secured Party to exercise any such powers. The Secured
Party shall be accountable only for the amounts that it actually receives as a result of the exercise of such powers, and neither
it nor any of its officers, directors, employees or agents shall be responsible to the Company for any act or failure to act,
except for the Secured Party’s own gross negligence or willful misconduct.

 

    	 	 	 

     

    

 

13.
Rights and Remedies.

 

13.1.
General. If an Event of Default shall have occurred and be continuing, the Secured Party, without any other notice
to or demand upon the Company, but subject in all cases to the terms of any applicable Intercreditor Agreement, shall have in
any jurisdiction in which enforcement hereof is sought, in addition to all other rights and remedies, the rights and remedies
of a secured party under the Uniform Commercial Code of the State or any other relevant jurisdiction and any additional rights
and remedies as may be provided to a secured party in any jurisdiction in which Collateral is located, including the right to
take possession of the Collateral, and for that purpose the Secured Party may, so far as the Company can give authority therefor,
enter upon any premises on which the Collateral may be situated and remove the same therefrom. The Secured Party may in its discretion,
but subject in all cases to the terms of any applicable Intercreditor Agreement, require the Company to assemble all or any part
of the Collateral at such location or locations within the jurisdiction(s) of the Company’s principal office(s) or at such
other locations as the Secured Party may reasonably designate. Unless the Collateral is perishable or threatens to decline speedily
in value or is of a type customarily sold on a recognized market, the Secured Party shall give to the Company at least ten (10)
Business Days prior written notice of the time and place of any public sale of Collateral or of the time after which any private
sale or any other intended disposition is to be made. The Company hereby acknowledges that ten (10) Business Days prior written
notice of such sale or sales shall be reasonable notice. In addition, the Company waives any and all rights that it may have to
a judicial hearing in advance of the enforcement of any of the Secured Party’s rights and remedies hereunder, including
its right following an Event of Default to take immediate possession of the Collateral and to exercise its rights and remedies
with respect thereto.

 

14.
Standards for Exercising Rights and
Remedies. To the extent that applicable law imposes duties
on the Secured Party to exercise remedies in a commercially reasonable manner, but subject at all times to the terms of any applicable
Intercreditor Agreement, the Company acknowledges and agrees that it is not commercially unreasonable for the Secured Party (a)
to fail to incur expenses reasonably deemed significant by the Secured Party to prepare Collateral for disposition or otherwise
to fail to complete raw material or work in process into finished goods or other finished products for disposition, (b) to fail
to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail
to obtain governmental or third party consents for the collection or disposition of Collateral to be collected or disposed of,
(c) to fail to exercise collection remedies against account debtors or other persons obligated on Collateral or to fail to remove
Liens on or any adverse claims against Collateral, (d) to exercise collection remedies against account debtors and other persons
obligated on the Collateral directly or through the use of collection agencies and other collection specialists, (e) to advertise
dispositions of the Collateral through publications or media of general circulation, whether or not the Collateral is of a specialized
nature, (f) to contact other persons, whether or not in the same business as the Company, for expressions of interest in acquiring
all or any portion of the Collateral, (g) to hire one or more professional auctioneers to assist in the disposition of the Collateral,
whether or not the collateral is of a specialized nature, (h) to dispose of the Collateral by utilizing Internet sites that provide
for the auction of assets of the types included in the Collateral or that have the reasonable capability of doing so, or that
match buyers and sellers of assets, (i) to dispose of assets in wholesale rather than retail markets, (j) to disclaim disposition
warranties, (k) to purchase insurance or credit enhancements to insure the Secured Party against risks of loss, collection or
disposition of the Collateral or to provide to the Secured Party a guaranteed return from the collection or disposition of such
Collateral, or (l) to the extent deemed appropriate by the Secured Party, to obtain the services of brokers, investment bankers,
consultants and other professionals to assist the Secured Party in the collection or disposition of any of the Collateral. The
Company acknowledges that the purpose of this §14 is to provide non-exhaustive indications of what actions or omissions by
the Secured Party would fulfill the Secured Party’s duties under the Uniform Commercial Code of the State or any other relevant
jurisdiction in the Secured Party’s exercise of remedies against the Collateral and that other actions or omissions by the
Secured Party shall not be deemed to fail to fulfill such duties solely on account of not being indicated in this §14. Without
limitation upon the foregoing, nothing contained in this §14 shall be construed to grant any rights to the Company or to
impose any duties on the Secured Party that would not have been granted or imposed by this Agreement or by applicable law in the
absence of this §14.

 

    	 	 	 

     

    

 

15.
No Waiver by Secured Party, etc.
The Secured Party shall not be deemed to have waived any of its rights and remedies in respect of the Obligations or the Collateral
unless such waiver shall be in writing and signed by the Secured Party. No delay or omission on the part of the Secured Party
in exercising any right or remedy shall operate as a waiver of such right or remedy or any other right or remedy. A waiver on
any one occasion shall not be construed as a bar to or waiver of any right or remedy on any future occasion. All rights and remedies
of the Secured Party with respect to the Obligations or the Collateral, whether evidenced hereby or by any other instrument or
papers, shall be cumulative and may be exercised singularly, alternatively, successively or concurrently at such time or at such
times as the Secured Party deems expedient.

 

16.
Suretyship Waivers by Company.
The Company waives 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 hereon and all other demands and notices of any description. With respect
to both the Obligations and the Collateral, the Company assents to any extension or postponement of the time of payment or any
other indulgence, to any substitution, exchange or release of or failure to perfect any security interest in any such Collateral,
to the addition or release of any party or person primarily or secondarily liable, to the acceptance of partial payment thereon
and the settlement, compromising or adjusting of any thereof, all in such manner and at such time or times as the Secured Party
may deem advisable. The Secured Party shall have no duty as to the collection or protection of the Collateral or any income therefrom,
the preservation of rights against prior parties, or the preservation of any rights pertaining thereto beyond the safe custody
thereof as set forth in §9.2. The Company further waives any and all other suretyship defenses.

 

17.
Marshaling.
The Secured Party shall not be required to marshal any present or future collateral security (including but not limited to the
Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such collateral security or
other assurances of payment in any particular order, and all of the rights and remedies of the Secured Party hereunder and of
the Secured Party in respect of such collateral security and other assurances of payment shall be cumulative and in addition to
all other rights and remedies, however existing or arising. To the extent that it lawfully may, the Company hereby agrees that
it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the
Secured Party’s rights and remedies under this Agreement or under any other instrument creating or evidencing any of the
Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof
is otherwise assured, and, to the extent that it lawfully may, the Company hereby irrevocably waives the benefits of all such
laws.

 

    	 	 	 

     

    

 

18.
Proceeds of Dispositions; Expenses.
The Company shall pay to the Secured Party on demand any and all expenses, including attorneys’ fees and disbursements,
incurred or paid by the Secured Party in protecting or preserving the Secured Party’s rights and remedies under or in respect
of any of the Obligations or any of the Collateral and, in addition, the Company shall pay to the Secured Party on demand any
and all expenses, including attorneys’ fees and disbursements, incurred or paid by the Secured Party in enforcing the Secured
Party’s rights and remedies under or in respect of any of the Obligations or any of the Collateral. After deducting all
of said expenses, the residue of any proceeds of collection or sale or other disposition of Collateral shall, to the extent actually
received in cash, be applied to the payment of the Obligations in such order or preference as is provided in the SPA, proper allowance
and provision being made for any Obligations not then due. Upon the final payment and satisfaction in full of all of the Obligations
and after making any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the Uniform Commercial Code of the State,
any excess shall be returned to the Company. In the absence of final payment and satisfaction in full of all of the Obligations,
the Company shall remain liable for any deficiency.

 

19.
Overdue Amounts.
Until paid, all amounts due and payable by the Company hereunder shall be a debt secured by the Collateral and shall bear, whether
before or after judgment, interest at the rate of interest for overdue principal set forth in the Transaction Documents.

 

20.
Governing Law; Consent to Jurisdiction.
This Agreement IS A contract UNDER the laws of the state of NEW YORK and shall for
all purposes be construed in accordance with and governed by the laws of SAID state of NEW YORK. The Company and THE SECURED PARTY
EACH agree that any suit for the enforcement of this agreement or any other action brought by SUCH PERSON arising hereunder or
in any way related to this agreement SHALL BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK IN THE BOROUGH OF MANHATTAN
OR ANY FEDERAL COURT SITTING THEREIN AND CONSENTS TO THE NONEXCLUSIVE JURISDICTION OF SUCH COURT AND SERVICE OF PROCESS IN ANY
SUCH SUIT BEING MADE UPON SUCH PERSON BY MAIL AT THE ADDRESS SPECIFIED ON THE SIGNATURE PAGE OF EACH PARTY HERETO. the
Company hereby waives any objection that it may now or hereafter have to the venue of any suit BROUGHT IN the state of new york
or any court SITTING THEREIN or that A suit BROUGHT THEREIN is brought in an inconvenient court.

 

21.
Waiver of Jury Trial.
THE COMPANY AND THE SECURED PARTY WAIVES ITS RIGHT TO A JURY TRIAL WITH RESPECT TO ANY ACTION OR CLAIM ARISING OUT OF ANY DISPUTE
IN CONNECTION WITH THIS AGREEMENT, ANY RIGHTS OR OBLIGATIONS HEREUNDER OR THE PERFORMANCE OR ENFORCEMENT OF ANY SUCH RIGHTS OR
OBLIGATIONS. Except as prohibited by law, the Company waives any right which it may have to claim or recover in any litigation
referred to in the preceding sentence any special, exemplary, punitive or consequential damages or any damages other than, or
in addition to, actual damages. The Company (a) certifies that neither the Secured Party nor any representative, agent or attorney
of the Secured Party has represented, expressly or otherwise, that the Secured Party would not, in the event of litigation, seek
to enforce the foregoing waivers or other waivers contained in this Agreement and (b) acknowledges that, in entering into this
Agreement and any other Transaction Document to which the Secured Party is a party, the Secured Party is relying upon, among other
things, the waivers and certifications contained in this §21.

 

    	 	 	 

     

    

 

22.
Notices.
All notices, requests and other communications hereunder shall be made in the manner set forth in the SPA.

 

23.
Miscellaneous.
The headings of each section of this Agreement are for convenience only and shall not define or limit the provisions thereof.
This Agreement and all rights and obligations hereunder shall be binding upon the Company and its successors and assigns, and
shall inure to the benefit of the Secured Party and its successors and assigns. If any term of this Agreement shall be held to
be invalid, illegal or unenforceable, the validity of all other terms hereof shall in no way be affected thereby, and this Agreement
shall be construed and be enforceable as if such invalid, illegal or unenforceable term had not been included herein. The Company
acknowledges receipt of a copy of this Agreement.

 

24.
Transitional Arrangements.
This Agreement shall supersede the Original Security Agreement on the date hereof. Upon the effectiveness of the Second SPA, the
rights and obligations of the respective parties under the Original Security Agreement shall be subsumed within and governed by
this Agreement; provided, that the provisions of the Original Security Agreement shall remain in full force and effect
prior to the effectiveness of the Second SPA, and the liens granted pursuant to the Original Security Agreement shall continue
to be in effect hereunder as set forth in §2.1.

 

[Signature
pages to follow]

 

    	 	 	 

     

    

 

IN
WITNESS WHEREOF, intending to be legally bound, the Company has caused this Agreement to be duly executed as of the date first
above written.

 

	 	BOXLIGHT
    CORPORATION
	 	 	 
	 	By:
    	/s/
                                         Michael Pope

	 	Title:
    	President

 

	Accepted:	 
	 	 
	LIND
    GLOBAL MACRO FUND, LP 	 
	By:
    Lind Global Partners LLC, its general partner 	 
	 	 	 
	By:	/s/
                                         Jeff Easton

	 
	Title:
    	Managing
    Director of the General Partner	 

 

    	 	 	 

     

    

 

CERTIFICATE
OF ACKNOWLEDGMENT

 

COMMONWEALTH
OR STATE OF Georgia)

)
ss.

COUNTY
OF Hall _________)

 

On this 12th
day of December, 2019, before me, the undersigned notary public, personally appeared Michael Pope, proved to me through
satisfactory evidence of identification, which were personally known, to be the person whose name is signed on the preceding
or attached document, and acknowledged to me that (he)(she) signed it voluntarily for its stated purpose (as President
for Boxlight Corporation).

 

	 	/s/ Amanda
    L. Flatt
	 	(official
    signature and seal of notary)
	 	 
	 	My
    commission expires: 11-13-2022

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00302-of-00352.parquet"}]]