Document:

exhibit102firstamendment

                                                                          EXHIBIT 10.2                                                   FIRST AMENDMENT TO PLAIN ENGLISH GROWTH CAPITAL LOAN AND SECURITY                                      AGREEMENT                                                     This  is  a FIRST  AMENDMENT  TO  PLAIN  ENGLISH  GROWTH  CAPITAL  LOAN  AND  SECURITY AGREEMENT dated as of November 10, 2020 (the “Amendment”), by and among (i) CASPER SLEEP  INC., a Delaware corporation, CASPER SLEEP RETAIL LLC, a Delaware limited liability company and CASPER  SCIENCE  LLC, a  Delaware  limited  liability  company, as  borrowers  (each  a “Borrower” and  collectively  the  “Borrowers”; the words “You” and “Your” refer to the Borrowers) and (ii) TRIPLEPOINT VENTURE GROWTH  BDC CORP., a Maryland corporation, in its capacity as a lender (in such capacity, “TPVG”) and in its capacity as  Collateral  Agent  pursuant  to  the  Collateral  Agency  Agreement  (in  such  capacity,  “Collateral  Agent”)  and  (B)  TRIPLEPOINT CAPITAL LLC, a Delaware limited liability company, in its capacity as a lender (in such capacity,  “TPC”; TPC and TPVG, each a “Lender” and collectively the “Lenders”).                                                  RECITALS          A.     This Amendment is executed and delivered in connection with the Plain English Growth Capital  Loan and Security Agreement dated as of March 1, 2019, by and among Borrowers, Lenders and Collateral Agent (as  the same has been amended, restated, supplemented or otherwise modified as of the date hereof, the “Existing Loan  Agreement”; and  as amended  by this  Amendment,  the “Loan  Agreement”), pursuant  to  which Lenders  agreed to  provide financial accommodations to or for the benefit of Borrowers upon the terms and conditions contained in the  Existing Loan Agreement. All capitalized terms defined in the Loan Agreement shall have the same definitions when  used herein, unless otherwise defined herein.           B.     Borrowers have informed the Lenders and the Collateral Agent that they intend to enter into the  Credit Agreement dated as of the date hereof, among the Borrowers, the lenders party thereto and Wells Fargo Bank,  National Association, as a lender and as administrative agent for the lenders.          C.     In connection  with their  entry into the  Senior  Credit  Agreement, Borrowers have  requested  that  certain  provisions of the Existing  Loan  Agreement be  amended, and  Lenders and  Collateral  Agent  are  willing to  amend the Existing Loan Agreement on the terms and conditions set forth in this Amendment.                                        AGREEMENT          NOW,  THEREFORE,  for  good  and  valuable  consideration,  the  receipt  and  sufficiency  of  which  are  acknowledged, Borrowers, Lenders and Collateral Agent agree as follows:    1.    RATIFICATION; LOAN DOCUMENTS REMAIN IN FULL FORCE AND EFFECT         You hereby acknowledge, confirm and ratify all of the terms and conditions set forth in, and all of Your  obligations under, the Existing Loan Agreement and the other Loan Documents, as modified by this Amendment.   Except as expressly set forth herein, the execution, delivery, and performance of this Amendment shall not operate as  a  waiver  of,  or as  an amendment  of,  any  right,  power,  or  remedy  of  Collateral  Agent  or Lenders  under the Loan  Agreement or any other Loan Document, as in effect prior to the date hereof.  Nothing in this Amendment shall be  deemed to be an agreement, obligation or commitment on the part of Collateral Agent or Lenders to consent to any  other actions by You not permitted by the Loan Agreement or any other Loan Document.        Except as expressly modified under this Amendment, You hereby acknowledge that the Loan Agreement,  the  Loan  Documents,  the  Excluded  Agreements  and  all  other  documents  or  instruments  executed  in  connection  therewith are in full force and effect and constitute the valid, legal and binding obligations of each of You enforceable  in accordance with their respective terms.  You have no defenses, offsets, counterclaims or deductions to all or any  portion of the Secured Obligations as of the date hereof, to the extent any such defenses, offsets, counterclaims or  deductions against Collateral Agent or Lenders exist as of the date of this Agreement, they are hereby forever waived  and released by You.   2.    AMENDMENTS TO LOAN AGREEMENT   Casper First Amendment to GC Loan  

 

Effective as of the date in which the Borrowers satisfy all conditions to effectiveness set forth in Section 3 below, and  in reliance on the representations, warranties, and covenants of the Borrowers contained in this Amendment, the Loan  Agreement is amended to delete the stricken text (indicated textually in the same manner as the following example:  stricken text) and to add the bold and double-underlined text (indicated textually in the same manner as the following  example:  bold and double-underlined text) as set forth on the pages of the Existing Loan Agreement attached as  Exhibit A hereto. The Recitals to this Amendment are incorporated into and made a part of the Credit Agreement.    3.    CONDITIONS TO EFFECTIVENESS      Þ  Receipt by Collateral Agent of copies of this Amendment, duly executed by Borrowers, Collateral Agent        and Lenders;     Þ  Receipt by Collateral Agent of the Senior Intercreditor Agreement, duly executed by Collateral Agent and        Senior Agent, and acknowledged and agreed to by each of You;     Þ  Receipt by Collateral Agent of the credit agreement and material collateral documents executed by You or        Your Subsidiaries in connection with the Senior Credit Agreement;      Þ  Receipt by Collateral Agent of legal and professional fees of the Collateral Agent and Lenders associated        with this Amendment; and     Þ  The absence of any occurrence and continuing Default or Event of Default as of the First Amendment        Closing Date.  4.    REPRESENTATIONS AND WARRANTIES   You represent and warrant that the representations and warranties contained in the Loan Agreement were true and  correct in all material respects when made and, except to the extent (a) that a particular representation or warranty by  its terms expressly applies only to an earlier date or (b) set forth in a Schedule of Exceptions attached hereto, if any,  are true and correct in all material respects as of the First Amendment Closing Date.  You further represent and warrant  that  there are  no  Defaults  or Events  of  Default that  have occurred and are continuing as of  the  First  Amendment  Closing Date, before and after giving effect to this Amendment.   5.    MISCELLANEOUS      Þ  Entire Agreement.  The terms and conditions of this Amendment shall be incorporated by reference in the        Loan Agreement as though set forth in full in the Loan Agreement.  In the event of any inconsistency between        the provisions of this Amendment and any other provision of the Loan Agreement, the terms and provisions        of this Amendment shall govern and control.  Except to the extent specifically amended or superseded by the        terms of this Amendment, all of the provisions of the Loan Agreement and the other Loan Documents shall        remain  in  full  force  and effect  to  the extent  in  effect  on  the  First  Amendment  Closing  Date.   The Loan        Agreement, together with the other Loan Documents, constitutes the complete agreement among the parties        and  supersedes  any  prior  written  or  oral agreements,  writings,  communications  or  understandings  of  the        parties with respect to the subject matter the Loan Agreement.      Þ  Headings.  Section headings used in this Amendment are for convenience of reference only, are not part of        this Amendment, and are not to be taken into consideration in interpreting this Amendment.      Þ  Recitals.  The recitals set forth at the beginning of this Amendment are true and correct, and such recitals are        incorporated into and are a part of this Amendment.      Þ  Governing Law.  This Amendment shall be governed by, and construed and enforced in accordance with,        the laws of the State of California applicable to contracts made and performed in such state, without regard        to the principles thereof regarding conflict of laws.      Þ  Effect.  Upon the effectiveness of this Amendment, from and after the First Amendment Closing Date, each        reference in the Loan Agreement to “this Agreement,” “hereunder,” “hereof,” or words of like import shall        mean and be a reference to the Loan Agreement as amended by this Amendment and each reference in the                  Casper First Amendment to GC Loan                                                    2 

 

      other Loan Documents to the Loan Agreement, “thereunder,” “thereof,” or words of like import shall mean        and be a reference to the Loan Agreement as amended by this Amendment.      Þ  Agent Authorization.  Each of the undersigned Lenders hereby authorizes the Agent to execute and deliver        this Amendment.  By its execution below, each of the undersigned Lenders agrees to be bound by the terms        and conditions of this Amendment.      Þ  No Novation.  Except as expressly provided in Section 2 above, the execution, delivery, and effectiveness        of this Amendment shall not (a) limit, impair, constitute a waiver of, or otherwise affect any right, power, or        remedy  of  the  Collateral  Agent  or  Lenders  under  the  Loan  Agreement  or  any  other  Loan  Document,        (b) constitute a waiver of any provision in the Loan Agreement or in any of the other Loan Documents, or        (c) alter,  modify,  amend,  or  in  any  way  affect  any  of  the  terms,  conditions,  obligations,  covenants,  or        agreements contained in the Loan Agreement, all of which are ratified and affirmed in all respects and shall        continue in full force and effect.      Þ  No Construction Against Drafter.  This Amendment is the result of negotiations between the Borrowers,        Collateral Agent and Lenders, has (to the extent deemed necessary by each party) been reviewed by their        respective counsel, and is the product of the efforts of all parties.  The involvement of the Collateral Agent        and Lenders in the preparation of this Amendment is for the convenience of all parties and the parties agree        that the terms of this Amendment shall not be construed against the Collateral Agent or any Lender solely by        virtue of such preparation.      Þ  No Other Waivers; Reservation of Rights.  Neither the Collateral Agent nor any Lender has waived and is        not  by  this  Agreement  waiving,  any  Events  of  Default  which  may  exist  or  be  continuing  on  the First        Amendment Closing Date or any Events of Default which may occur after the First Amendment Closing        Date. Each of the Collateral Agent and Lenders reserves the right, in its discretion, to exercise any or all of        its rights and remedies under the Loan Documents as a result of any Events of Default that may be continuing        on the First Amendment Closing Date or any Event of Default that may occur after the First Amendment        Closing Date, and none of the Collateral Agent or the Lenders have waived any of such rights or remedies,        and nothing in this Amendment, and no delay on its part in exercising any such rights or remedies, should be        construed as a waiver of any such rights or remedies.      Þ  Counterparts. This  Agreement  may  be  executed  in  any  number  of  counterparts,  each  of  which  will  be        deemed an original, but all such counterparts together constitute one and the same instrument.       Þ  Signatures.  This  Agreement  and  any  Promissory  Note  may  be  executed  and  delivered  by  facsimile  or        transmitted  electronically  in  either  Tagged  Image  Format  Files  (“TIFF”)  or  Portable  Document  Format        (“PDF”) and, upon such delivery, the facsimile, TIFF or PDF signature, as applicable, will be deemed to        have the same effect as if the original signature had been delivered to the other party.                                   [SIGNATURE PAGE TO FOLLOW]                                                Casper First Amendment to GC Loan                                                    3 

 

IN WITNESS WHEREOF, The Parties have executed and delivered this Amendment as of the day and year first  above written.    BORROWER:                        You:          CASPER SLEEP INC.                                     Signature:    /s/ Michael P. Monahan                                     Print Name:   Michael P. Monahan                                     Title:        Chief Financial Officer                                       You:          CASPER RETAIL LLC                                     Signature:    /s/ Michael P. Monahan                                     Print Name:   Michael P. Monahan                                     Title:        Treasurer                                         You:          CASPER SCIENCE LLC                                     Signature:    /s/ Michael P. Monahan                                     Print Name:   Michael P. Monahan                                     Title:        Treasurer    [SIGNATURE PAGE TO FIRST AMENDMENT TO PLAIN ENGLISH GROWTH CAPITAL LOAN AND                                  SECURITY AGREEMENT]                                               Casper First Amendment to GC Loan                                                    4 

 

  Accepted in Menlo Park, California:    LENDER:                                        TRIPLEPOINT CAPITAL LLC                                       Signature:    /s/ Christopher M. Mathieu                                     Print Name:   Christopher M. Mathieu                                     Title:        Chief Financial Officer    LENDER:                                        TRIPLEPOINT VENTURE GROWTH BDC CORP.                                         Signature:    /s/ Christopher M. Mathieu                                     Print Name:   Christopher M. Mathieu                                     Title:        Chief Financial Officer      COLLATERAL AGENT:                              TRIPLEPOINT VENTURE GROWTH BDC CORP.                                         Signature:    /s/ Christopher M. Mathieu                                     Print Name:   Christopher M. Mathieu                                     Title:        Chief Financial Officer              [SIGNATURE PAGE TO FIRST AMENDMENT TO PLAIN ENGLISH GROWTH CAPITAL LOAN AND                                  SECURITY AGREEMENT]                               Casper First Amendment to GC Loan                                                    5 

 

                                                                                                 EXHIBIT A – CONFORMED COPY                                                                                                 PLAIN ENGLISH GROWTH CAPITAL LOAN AND SECURITY AGREEMENT                                               This is a PLAIN ENGLISH GROWTH CAPITAL LOAN AND SECURITY AGREEMENT dated as of March  1,  2019  by  and  between  (i)  CASPER  SLEEP  INC.,  a  Delaware  corporation,  CASPER  SLEEP  RETAIL  LLC,  a  Delaware  limited  liability  company  and  CASPER  SCIENCE  LLC,  a  Delaware  limited  liability  company,  as  borrowers, and any other Person that executes a Joinder Agreement to become a borrower under this Agreement, and  (ii)(A) TRIPLEPOINT VENTURE GROWTH BDC CORP., a Maryland corporation, in its capacity as a lender (in  such capacity, “TPVG”) and in its capacity as Collateral Agent pursuant to the Collateral Agency Agreement (as  defined herein) (in such capacity, “Collateral Agent”) and (B) TRIPLEPOINT CAPITAL LLC, a Delaware limited  liability company, in its capacity as a lender (in such capacity, “TPC”; TPVG and TPC, in their respective capacities  as lenders, each a “Lender” and collectively the “Lenders”).    The words “We”, “Us”, and “Our” refer to Lenders and Collateral Agent, collectively.  Unless otherwise specified,  the words “You” and “Your” refer to each of and all of CASPER  SLEEP  INC.,  CASPER SLEEP RETAIL LLC,  CASPER SCIENCE LLC and any other Person that executes a Joinder Agreement to become a borrower under this  Agreement, and, not  to  any  individual,  and CASPER  SLEEP  INC.,  CASPER  SLEEP  RETAIL  LLC,  CASPER  SCIENCE LLC and any other Person that executes a Joinder Agreement to become a borrower under this Agreement,  shall be jointly and severally liable for any and all of Your agreements and obligations under this Agreement.  The  words “the Parties” refers to each of and all of Lenders, Collateral Agent, CASPER SLEEP INC., CASPER SLEEP  RETAIL  LLC,  CASPER  SCIENCE  LLC  and  any  other  Person  that  executes  a  Joinder  Agreement  to  become  a  borrower under this Agreement. This Plain English Growth Capital Loan and Security Agreement may be referred to  as the “Agreement”.  The Parties agree to the following mutual agreements and conditions listed below:                       GROWTH CAPITAL LOAN FACILITY INFORMATION                                     SECTION 1.Facility Number                                      Part 1: ####-##-##                                      Part 2: ####-##-##                                      Part 3: ####-##-##                                      Part 4: ####-##-##       Casper First Amendment to GC Loan  EXHIBIT A  

 

                                  Commitment Amount   Part 1:  $50,000,000 available upon completion of the Part 1 Milestone, allocated between Lenders as follows:                          TPVG Commitment         $30,000,000                               Amount                           TPC Commitment         $20,000,000                               Amount    Part 2:  $12,500,000 available Upon Request and Approval following full utilization of the Part 1 Commitment  Amount and execution of a warrant agreement in substantially the same form as the Warrant Agreement executed                      on the Closing Date, allocated between Lenders as follows:                          TPVG Commitment                                                Allocation to be                               Amount                                              determined at time of                           TPC Commitment         availability                               Amount    Part 3:  $12,500,000 available Upon Request and Approval following full utilization of the Part 1 Commitment  Amount and execution of a warrant agreement in substantially the same form as the Warrant Agreement executed                      on the Closing Date, allocated between Lenders as follows:                          TPVG Commitment                                                Allocation to be                               Amount                                              determined at time of                           TPC Commitment         availability                               Amount    Part 4:  $25,000,000 available Upon Request and Approval following full utilization of the Part 1 Commitment  Amount and execution of a warrant agreement in substantially the same form as the Warrant Agreement executed                      on the Closing Date, allocated between Lenders as follows:                          TPVG Commitment                                                Allocation to be                               Amount                                              determined at time of                           TPC Commitment         availability                               Amount                                                                                                         2 

 

  Minimum Advance       Availability Period      Loan Term            Interest Rate         Amount                          Part 1: Closing Date  Part 1: See Table of Part 1: See Table of         None.            through February 28,   Terms, “Advance      Terms, “Advance                               2021.*               Options”             Options”                           Parts 2, 3, and 4: To be Parts 2, 3, and 4: To be Parts 2, 3, and 4: To be                             determined.           determined.          determined.                        *The Parties acknowledge                                                                    (Prime Rate as published in                        the Part 1 Milestone was                     the Wall Street Journal,                         completed prior to the                    however, in no event shall the                            Closing Date.                            Prime Rate be less than                                                                          5.25%)                                          Security Interest         End Of Term Payment              Facility Fee  First priority security interest in all Part 1: See Table of Terms, Part 1: $625,000 due on the Closing   Collateral (subject only to clauses “Advance Options”    Date, allocated $375,000 to TPVG     (viii), (ix), (x) and (xi) of the                           and $250,000 to TPC                               Parts 2, 3, and 4: To be determined.   definition of “Permitted Liens”)                                                            Part 2: $156,250 due immediately                                                                                                          upon availability of the Part 2                                                             Commitment Amount, allocated                                                             pro-rata to TPVG and TPC based                                                              upon the Part 2 Commitment                                                                  Amount allocation.                                                            Part 3: $156,250 due immediately                                                              upon availability of the Part 3                                                             Commitment Amount, allocated                                                             pro-rata to TPVG and TPC based                                                              upon the Part 3 Commitment                                                                  Amount allocation.                                                            Part 4: $312,500 due immediately                                                              upon availability of the Part 4                                                             Commitment Amount, allocated                                                             pro-rata to TPVG and TPC based                                                              upon the Part 4 Commitment                                                                  Amount allocation.                                                                                                                                               3 

 

                                                                 ADVANCE OPTIONS*                              *Options available subject to Section 1.             Option A                     Option B                    Option C  Loan Term: 3 Months (Months 1-3 Loan Term: 6 Months (Months 1-6 Loan Term: 9 Months (Months 1-9   interest only, with principal due at interest only, with principal due at interest only, with principal due at      the end of the Loan Term)   the end of the Loan Term)    the end of the Loan Term)  Interest Rate: Prime Rate plus 0.0% Interest Rate: Prime Rate plus 1.0% Interest Rate: Prime Rate plus 1.5%    End of Term Payment: 0.25% of End of Term Payment: 1.25% of End of Term Payment: 2.25% of          each Advance                 each Advance                 each Advance             Option D                     Option E                     Option F  Loan Term: 12 Months (Months 1- Loan Term: 18 Months (Months 1- Loan Term: 24 Months   12 interest only, with principal due 18 interest only, with principal due                                                              Interest Rate: Prime Rate plus     at the end of the Loan Term) at the end of the Loan Term)                                                                       0.75%    Interest Rate: Prime Rate plus Interest Rate: Prime Rate plus 3.0%                                                            End of Term Payment: 4.0% of each             2.25%                                End of Term Payment: 4.75% of         Advance   End of Term Payment: 3.0% of each    each Advance            Advance             Option G                    Option H                      Option I       Loan Term: 30 Months         Loan Term: 42 Months        Loan Term: 48 Months     Interest Rate: Prime Rate plus Interest Rate: Prime Rate plus 2.5% Interest Rate: Prime Rate plus             1.25%                                                     3.25%                               End of Term Payment: 7.0% of each  End of Term Payment: 5.5% of each      Advance            End of Term Payment: 7.0% of each            Advance                                                   Advance             Option J                    Option K                     Option L  Loan Term: 24 Months (Months 1- Loan Term: 30 Months (Months 1- Loan Term: 36 Months (Months 1-  12 interest only, followed by 12 15 interest only, followed by 15 18 interest only, followed by 18    months of principal and interest months of principal and interest months of principal and interest           payments)                    payments)                    payments)    Interest Rate: Prime Rate plus Interest Rate: Prime Rate plus 3.0% Interest Rate: Prime Rate plus             1.75%                                                     3.75%                                End of Term Payment: 5.75% of    End of Term Payment: 5.75% of      each Advance         End of Term Payment: 7.0% of each          each Advance                                                Advance                                                                                                    4 

 

          Option M                     Option N                    Option O  Loan Term: 42 Months (Months 1- Loan Term: 48 Months (Months 1- Loan Term: 24 Months (Months 1-  21 interest only, followed by 21 24 interest only, followed by 24 24 interest only, with principal due    months of principal and interest months of principal and interest at the end of the Loan Term)           payments)                    payments)                                                              Interest Rate: Prime Rate plus    Interest Rate: Prime Rate plus Interest Rate: Prime Rate plus 5.0% 4.25%             4.25%                                End of Term Payment: 8.25% of End of Term Payment: 6.0% of each    End of Term Payment: 8.25% of      each Advance                   Advance          each Advance             Option P                    Option Q                     Option R  Loan Term: 36 Months (Months 1- Loan Term: 42 Months (Months 1- Loan Term: 48 Months (Months 1- 36 interest only, with principal due 42 interest only, with principal due 48 interest only, with principal due     at the end of the Loan Term) at the end of the Loan Term) at the end of the Loan Term)  Interest Rate: Prime Rate plus 6.0% Interest Rate: Prime Rate plus Interest Rate: Prime Rate plus                                          6.75%                        7.25%    End of Term Payment: 6.25% of          each Advance         End of Term Payment: 6.5% of each End of Term Payment: 7.5% of each                                         Advance                      Advance      Option S only available in                                               connection with Option R   Loan Term:  The Loan Term for   advances under Option R may be  extended by an additional 12 months    of interest only, for a total of 60  Months (Months 1-60 interest only,   with remaining principal due at the   end of the Loan Term), upon Your    request in writing to Us and Our  approval, which We may approve in        Our sole discretion.    Interest Rate: Prime Rate plus             8.00%.   End of Term Payment: 8.50% of       each Advance funded                                                                                                                               5 

 

                               OUR CONTACT INFORMATION              Name                   Address For Notices            Contact Person      TPVG and Collateral Agent:  2755 Sand Hill Rd., Ste. 150  Sajal Srivastava, President    TriplePoint Venture Growth BDC  Menlo Park, CA 94025           Tel: (650) 233-2102              Corp.                   Tel: (650) 854-2090         Fax: (650) 854-1850     TPC: TriplePoint Capital LLC    Fax: (650) 854-1850                email:                                                                legal@triplepointcapital.com                              YOUR CONTACT INFORMATION          Customer Name              Address For Notices            Contact Person          Casper Sleep Inc.         230 Park Avenue South         Greg Macfarlane, CFO       Casper Sleep Retail LLC            13th Floor               Tel: (646) 883-3725         Casper Science LLC          New York, NY 10003                Fax: n/a                                                                        email:                                                                greg.macfarlane@casper.com                                                                     With copy to:                                                                mike.magee@casper.com                                                                            Capitalized terms defined in the Table of Terms shall have the meanings given to those terms in such table, and other  capitalized terms not otherwise defined in the body of this Agreement are defined in Section 21.  Any accounting term  not specifically defined herein shall be construed in accordance with GAAP, and all calculations shall be made in  accordance with GAAP. The term “financial statements” shall include the accompanying notes and schedules.   For all purposes under the Loan Documents, in connection with any division or plan of division under Delaware law  (or any comparable event under a different jurisdiction’s laws): (a) if any asset, right, obligation or liability of any  Person becomes the asset, right, obligation or liability of a different Person, then it shall be deemed to have been  transferred from the original Person to the subsequent Person, and (b) if any new Person comes into existence, such  new Person should be deemed to have been organized on the first date of its existence by the holders of its equity  interests at such time.    1.    WHAT THE PARTIES AGREE TO FINANCE; DESIGNATION OF LEAD BORROWER   SECTION 2.Use of Proceeds.  Provided that the conditions in Sections 4 and 5 and elsewhere in this Agreement are met,  each Lender (severally and not jointly or jointly and severally) will lend to You the Parts of the Commitment Amount  specified for such Lender as reflected in the Table of Terms and You agree to use such proceeds to finance any of Your  general corporate needs.  Lenders will lend to You advances (each an “Advance”) in minimum amounts as set forth in the  Table of Terms up to a maximum of the Commitment Amount for each Part as provided in the Table of Terms; provided,  that each Lender’s funding obligation with respect to any Advance (x) shall be several and not joint or joint and several,  (y) shall be in an amount equal to its Pro Rata Share thereof, and (z) shall not exceed the then remaining unfunded amount  of such Lender’s individual Commitment Amount for the applicable Part as provided in the Table of Terms.  Each Lender’s  obligation to fund Advances under each Part of the Commitment Amount under this Agreement will end on the last day  of the Availability Period noted in the Table of Terms for such Part.    SECTION 3.Advance Options. You agree not to request any Advance Options in which the final payments (including  End  of  Term  Payments)  would  be  due  and  owing  prior  to  the  permitted  date  as  further set  forth  in  the Working  CapitalSenior Intercreditor Agreement in effect at the time of such Advance Request and if You do request such Advance  Option, We shall not be obligated to fund such Advance.   SECTION 4.Lead Borrower.  CASPER SLEEP RETAIL LLC, CASPER SCIENCE LLC and any Person that executes  a  Joinder  Agreement  to  become  a  borrower  under  this  Agreement  hereby  designates  CASPER  SLEEP  INC.  as  its  representative and agent on its behalf for the purposes of giving and receiving all Advance Requests and all other notices  and consents under this Agreement or under any of the other Loan Documents and taking all other actions (including in  respect of compliance with covenants) on behalf of CASPER SLEEP RETAIL LLC, CASPER SCIENCE LLC and any  Person that executes a Joinder Agreement to become a borrower under this Agreement, under this Agreement and the  other Loan Documents.  CASPER SLEEP INC. hereby accepts such appointment.  We may regard any notice or other  communication pursuant to this Agreement or any other Loan Document from CASPER SLEEP INC. as a notice or  communication from all of You, and may give any notice or communication required or permitted to be given to any of                                                                                   6 

 

You hereunder to CASPER  SLEEP INC. on behalf of each of You.  Each of You agrees that each notice, election,  representation and warranty, covenant, agreement and undertaking made on Your behalf by CASPER SLEEP INC. shall  be deemed for all purposes to have been made by each of You and shall be binding upon and enforceable against each of  You to the same extent as if the same had been made directly by each of You.   2.    YOU WILL ENTER INTO MULTIPLE PROMISSORY NOTES   SECTION 5.The Plain English Growth Capital Promissory Note in the form of Exhibit A (the “Promissory Note”) is  the document You will enter into in favor of each Lender each time an Advance is to be funded (it being understood that  separate Promissory Notes will be issued to each Lender with respect to each Advance).  The Promissory Note will  contain the  specific  financial terms  of the Advance (e.g. amount  funded, interest rate,  maturity date,  Advance  Date,  payment due dates etc.) and all of the terms and conditions of this Agreement are incorporated in and made a part of each   Promissory Note.  There may be multiple Promissory Notes associated with this Agreement.     3.    YOUR LOAN FACILITY COMMITMENT AMOUNT MAY BE DIVIDED INTO PARTS   The Commitment Amount and/or its corresponding parts (if any) will be noted in the Table of Terms (“Parts”).  For  purposes of this Agreement, references to the Commitment Amount shall mean the Part or Parts which are available  and in effect.  Certain terms or conditions associated with the availability of such Part are listed in the Table of Terms.   As to any Part that is available “Upon Request and Additional Approval”, You are required to make a request to  utilize  that  additional  Part  in  writing  to  Lenders  (the  “Commitment  Increase  Request  Notice”),  prior  to  Your  submission of a corresponding Advance Request.  After Lenders’ receipt of the Commitment Increase Request Notice,  Lenders  will  review the  information  available to them  and  conduct any  legal and  business  due  diligence deemed  necessary  by  them  in connection  with  their  attempt  to obtain their  respective  requisite credit approvals and  such  approval shall be in each Lender’s sole discretion.  Each Lender’s agreement to consider providing the additional Part  is not, and is not to be construed as, a commitment, offer, or agreement to provide such additional Part.  Part 1 Milestone:  The availability of the Part 1 Commitment Amount is subject to confirmation satisfactory to each  Lender that You have completed the Part 1 Milestone on or before February 28, 2019, as determined by each Lender  in its sole discretion.   4.    HOW WILL YOU REQUEST ADVANCES   In addition to the requirements of Section 5 set forth below, You agree to follow the procedures listed below to have  Lenders extend an Advance to You:  Þ  You will submit to Us (by facsimile, mail or electronic mail) a completed Advance Request in the form attached as  Exhibit B signed by Your Chief Executive Officer, President or Chief Financial Officer. The Advance Request shall be  irrevocable.  Þ  Such Advance Request must be submitted and received by Us no later than 5:00 p.m. PT five (5) Business Days  prior to the last day of the applicable Availability Period.  Any Advance Request submitted after 5:00 p.m. PT shall be  considered received the following Business Day.  Þ  Each Advance Request will state a requested funding date that is at least five (5) Business Days after the date such  Advance Request is submitted to Us.  SECTION 6.After We check and approve the information You provide in the Advance Request, We will prepare and  provide to You Promissory Notes for each Lender and an amortization schedule (consistent with this Agreement) for  Your signature.  Upon receipt of the Promissory Notes signed by Your authorized officer and confirmation by Us that all  conditions to funding an Advance have been met, each Lender will then advance its Pro Rata Share of the requested  funds to You.  SECTION 7.All the terms, conditions, and covenants of this Agreement shall apply to all Advances whether or not each  Advance is evidenced by a Promissory Note. You agree that We may rely on, and shall be fully protected in relying upon,  any notice or Advance Request given by any person We reasonably believe to be Your authorized representative without  the necessity of Our conducting an independent investigation, including Your contact person listed in the Table of Terms.   5.    CONDITIONS FOR US TO MAKE LOANS TO YOU                                                                                    7 

 

SECTION 8.Each Lender’s obligation to fund any Advance that You request under this Agreement is subject to  satisfaction of each of the conditions set forth in Sections 4 and 18 and each of the following conditions:  Þ  The representations and warranties in this Agreement and in the Warrant Agreement(s) shall be true, complete     and correct in all material respects on and as of the date(s) Lenders fund each Advance with the same effect as     though they were made on and as of such date, except to the extent such representations and warranties expressly     relate to an earlier date, in which case they shall remain true, complete and correct in all material respects as of     such earlier date; provided, however, that such materiality qualifiers shall not be applicable to any representations     and warranties that already are qualified or modified by materiality in the text thereof.  Each Advance Request     will  constitute  Your  representation  and  warranty  on the  relevant  Advance  Date as to  the  matters  provided  in     Sections 11 and 12 and as to the matters set forth in the Advance Request.  Þ  You shall be in compliance with all the terms and provisions set forth in this Agreement, each Promissory Note     and each other Loan Document, and at the time of and immediately after such Advance: (a) no Default or Event     of Default shall have occurred and be continuing, and (b) no fact or conditions shall exist that would (or would     with the passage of time, the giving of notice, or both) constitute a Default or an Event of Default under  this     Agreement or any other Loan Document.     Þ  You shall provide Collateral Agent with all appropriate assignments, notices and control agreements that are        necessary or desirable to perfect or maintain Collateral Agent’s first priority Lien in all of the Collateral        (subject only to clauses (viii), (ix), (x) and (xi) of the definition of “Permitted Liens”).     Þ  You shall have paid to each Lender the entire amount of its respective portion of the Facility Fee then due and        payable to such Lender as indicated in the Table of Terms relating to the Part under which such Advance is        funded.     Þ  No event or circumstance shall exist or have occurred that has had or could reasonably be expected to have a        Material Adverse Effect.     Þ  You shall have delivered to each Lender the Warrant Agreement to be issued to such Lender.     Þ  We shall have received all of the agreements, documents, instruments and other items set forth in the Schedule        of Documents attached hereto as Schedule 2, each in form and substance reasonably satisfactory to Us.     Þ  We  shall  have  received  certificates  of  insurance,  endorsements  and  other  documents  evidencing  Your        compliance with Section 10 in form and substance reasonably acceptable to Us.     Þ  Prior to any Advances under the Part 1 Commitment Amount, You shall have completed the Part 1 Milestone.     Þ  With respect to the Part 2 Commitment Amount, Part 3 Commitment Amount and Part 4 Commitment Amount        if made available, You shall have delivered to each Lender the warrant agreement to be entered into between        You and such Lender after the Closing Date with respect to the Part 2 Commitment Amount, Part 3 Commitment        Amount and Part 4 Commitment Amount which warrant agreement shall be substantially in the same form as        the Warrant Agreement executed on the Closing Date.     Þ  You shall submit to Us any other documents and other information that We may request.   6.    YOU MAY PREPAY YOUR PROMISSORY NOTES   You may at any time prepay all Promissory Notes with respect to any Advance in full (but not in part), without premium  or penalty, by (a) giving five (5) Business Days prior written notice to Us, and (b) paying: (i) the remaining outstanding  principal amount and all accrued interest calculated as if the date of such prepayment occurred on the next scheduled  monthly payment date per the respective Promissory Notes, (ii) the End of Term Payment for such Advance, (iii) all  other Secured Obligations, if any, that shall have become due and payable, including interest at the Default Rate with  respect to any past due amounts as of the date of prepayment, and (iv) the Prepayment Fee for such Advance (the amounts  payable under the foregoing clauses (i), (ii) and (iv) to be paid to each Lender based on its respective Pro Rata Share, and  the amounts payable under the foregoing clause (iii) to be paid to each of Us as Our respective interests appear) .   7.    THE MAXIMUM RATE OF INTEREST; DEFAULT RATE    SECTION 9.Maximum Rate of Interest.  It is not Our intent to receive interest at a rate greater than the maximum  rate permissible by law, which We shall call the “maximum rate”.  If a court determines You have actually paid Us  interest based on a rate that exceeds the maximum rate, then We shall apply the excess as follows:  first, to the payment                                                                                    8 

 

of the outstanding principal amount of the Secured Obligations; second, after all principal is repaid, to the payment of  Our accrued interest and any other principal, interest, fees, costs or other amounts owed by You to Us in respect of  the  Secured  Obligations; and third,  after  all  amounts  owed  by  You  to  Us  are  repaid, the excess  (if any)  shall  be  refunded to You.    SECTION 10.Default Interest.  In the event that You do not pay any interest when due, delinquent interest shall be  added to principal and shall bear interest on interest, compounded at the rate set forth in the Table of Terms.  Upon  and during an Event of Default, all principal, interest or other amounts owed by You to Us shall bear interest at a rate  per annum equal to the rate set forth in the Table of Terms plus five percent (5%) per annum (the “Default Rate”).   8.    YOU GRANT COLLATERAL AGENT A SECURITY INTEREST   SECTION 11.Each  of  You  grants to  Collateral  Agent,  on  behalf  of  and  for  the  benefit  of  Collateral  Agent  and  Lenders,  a  first  priority  (subject  only  to  clauses  (viii),  (ix),  (x)  and  (xi)  of  the  definition  of  “Permitted  Liens”),  continuing security interest in and Lien upon all of Your right, title and interest in each of the following whether now  owned or hereinafter acquired and wherever located:  Þ  All Receivables;  Þ  All Equipment;  Þ  All Fixtures;  Þ  All General Intangibles;  Þ  All Intellectual Property;  Þ  All Inventory;  Þ  All Investment Property;  Þ  All Deposit Accounts;  Þ  All Cash;  Þ  All commercial tort claims, if any, as listed on Exhibit C;  Þ  All  Goods  and  personal  property,  whether  tangible  or  intangible  and  whether  now  or  hereinafter  owned  or     existing, leased, consigned by or to or acquired and wherever located; and  Þ  To the extent not otherwise included, all Proceeds of each of the foregoing and all accessions to, substitutions and     replacements for, rents, profits, and products of each of the foregoing.  SECTION 12.All the above listed items will be collectively called the “Collateral”.   Notwithstanding  the  above,  Collateral  excludes  (i) Intellectual  Property  currently  held  or  hereafter  obtained,  but  includes Proceeds of Intellectual Property (including but not limited to all Receivables, rights to payment and General  Intangibles arising from the sale, licensing or disposition of all or any part of, or rights in, the foregoing); provided,  however, other than non-exclusive licenses or non-perpetual exclusive licenses with respect to geographic area, fields  of use and customized products for specific customers that would not result in a transfer of title of the licensed property  under applicable law, all given in the ordinary course of Your business, in the event any of You transfer, sell, assign,  grant a security interest in, hypothecate, permit or suffer to exist any Lien, or otherwise transfer any interest in or  encumber any portion of the Intellectual Property, either voluntarily or involuntarily, without Collateral Agent’s prior  written consent, Collateral Agent’s security interest shall include (and shall be deemed to have a Lien in such assets  included from the Closing Date) all Intellectual Property[Reserved], (ii) any license which is nonassignable by its  terms without the consent of the licensor thereof or another party (but only to the extent such prohibition on transfer  is enforceable under applicable law, including, without limitation, Sections 9406 and 9408 of the UCC); (iii) equity  interests of a controlled foreign corporation (as defined in the IRC), other than a Material Foreign Subsidiary,  in  excess of 65% of the voting power of all classes of equity interests of such controlled foreign corporations entitled to  vote,  (iv)  any  property  for  which  the  granting  of  a  security  interest  therein  is  contrary  to  applicable  law  or  any  agreement governing the financing of the acquisition of such property, provided that upon the cessation of any such  restriction or prohibition, such property shall automatically become part of the Collateral, and (v) cash and securities  held in the Excluded Accounts, until such time as they are no longer maintained in an Excluded Account.   SECTION 13.All references herein or in any other Loan Document to any Lien or security interest of Collateral Agent  shall be deemed to refer to the Lien of Collateral Agent on behalf of and for the benefit of itself and the Lenders.   9.    HOW AND WHAT YOU WILL PAY US                                                                                     9 

 

Payments.  The first payment date for each Advance will be the first day of the month following the month in which  the Advance was funded, unless that Advance is funded on the first day of that month, in which case the first payment  date shall be the Advance Date.  Each Advance shall be due in monthly installments consisting of either (a) that number of months of interest only  payments as indicated in the Table of Terms followed by the remaining monthly installment payments, as indicated  in the Table of Terms, of principal and interest, (b) if no interest only payments are indicated in the Table of Terms  for such Advance, that number of months as indicated in the Table of Terms for such Advance of monthly installment  payments of principal and interest, or (c) that number of months of interest only payments as indicated in the Table of  Terms for such Advance followed by the outstanding principal amount of such Advance due on the last day of the last  month of the Loan Term for such Advance.  All payments are payable on the first day of each month through the last  payment date (unless that date falls on a day that is not a Business Day in which event such payment shall be due on  the previous Business Day). The outstanding balance of each Advance shall be due and payable in full in immediately  available funds on the Maturity Date (as defined in the Promissory Notes for such Advance), if not sooner paid in full.  Interest.  The principal balance of each Promissory Note shall accrue interest at the percentage per year as indicated  in the Table of Terms, and shall be computed daily on the basis of a year consisting of 360 days for the actual number  of  days  occurring  in the  period for  which  such interest  is payable, and interest  shall accrue  in advance from the  Advance Date. In the event that the Prime Rate is changed from time to time during the term of this Agreement, the  applicable  rate  of  interest  for  the  outstanding  principal  balance  of  the  Advances  shall  be  increased  or  decreased,  effective as of the day the Prime Rate is changed, by an amount equal to such change in the Prime Rate.    Interim Payment.  In the event an Advance is made on any day other than the first day of the month, You shall make  payment to Lenders on the Advance Date in an amount equal to the per diem interest for the time from the Advance  Date through and including the last day of the month in which the Advance is funded.   Fees. You shall pay to Lenders (or in the case of Audits and Inspections, each of Us) the following fees and expenses:     Þ  Facility Fees.  On or before the Commitment Date, or upon availability of additional Commitment Amounts,        as the case may be, the respective Facility Fee as indicated in the Table of Terms.     Þ  End of Term Payment.  Upon the earlier of the expiration of the Loan Term or last payment date for any        Promissory Note, the End of Term Payments as indicated in the Table of Terms.     Þ  Audits  and  Inspections.  Field  audit  charges  in  the  amount  of  $800  per  diem  per  auditor  (or  the  then        prevailing  rate  charged  by  Collateral  Agent  or  the  applicable  Lender,  whichever  is  greater)  plus  actual        reasonable and documented out-of-pocket expenses, in connection with one field examination per year (or        more if a Default or Event of Default has occurred and is continuing) conducted in accordance with this        Agreement. In addition, all reasonable documented legal fees and expenses incurred in connection with the        annual legal review  by Collateral Agent of this Agreement, the Loan Documents and Collateral.     Þ  Prepayment Fee.  An additional prepayment premium (“Prepayment Fee”) shall be payable as follows for        prepayment of any Advance (other than Advances under Option A through Option E):            (a) If prepaid in months 1-18 following the Advance Date for such Advance: 1.5% of the outstanding               balance of such Advance; and            (b) If prepaid after month 18 following the Advance Date for such Advance, no additional prepayment               premium shall be due.  SECTION 14.Re-Borrowing.  Except with respect to Advances made under Option A through Option E, any amounts  that You repay on the Advances may not be re-borrowed.  Advances made under Option A through Option E, may be  repaid and re-borrowed until the last day of the applicable Availability Period.  Flex-Option.  During the Availability Period, with regard to Advances under the respective Commitment Amount,  upon Your written request, which request may be approved by each Lender in its sole discretion (it being understood  that all Lenders must approve any such request),  and so long as no Default or Event of Default has occurred and is  continuing, You may request for any outstanding Advance under such Commitment Amount to elect one of the other  payment structures under the Advance Options of the Table of Terms reduced by the number of months that have  expired on the Advance under the current Option.  Such request must be received no later than the 15th of any given  month.   In  the  event  all  Lenders  consent  to  the  flex-option  request,  You  agree  to  execute  an  amendment  to  the  Promissory Note for such Advance evidencing the new payment Option elected. The Lenders’ agreement to consider  providing the extension of flex-option is not, and is not to be construed as, a commitment, offer, or agreement to  provide such flex-option.                                                                                    10 

 

Interest Rate Adjustment. The Part 1 and Part 2 Commitment Amount Interest Rates will be adjusted as follows: if  You consummate  Your initial public  offering  (“IPO”) on or  before  December 31,  2020 in  which  You obtain  net  offering proceeds, after deduction of all fees and commissions, of not less than $100,000,000, then effective the first  month  following  such  consummation,  for  the  purpose  of  interest  accrual  from  and  after  such  consummation,  the  Interest Rate on all outstanding Advances shall be reduced by one percent (1%).  IPO Reduced Payment Option.  If as of any date during the Loan Term, (i) You are current on all payments that had  been due and payable through such date, and (ii) no Default or Event of Default has occurred and is continuing as of  such date, then You, at Your sole option and election, may provide Us with the following:            SECTION 1.            SECTION 2.(a)   written notice of Your planned IPO (the “IPO Notice”);             SECTION 3.(b)   evidence in the form of the filing of an S-1 registration statement contemplating            an IPO from which You reasonably expect to obtain gross proceeds of not less than $100,000,000, and            retention of at least one underwriter; and            SECTION 4.(c)   receipt by Us of a fee equal to 1% of the outstanding principal amounts for all            Advances then outstanding.            SECTION 5.            SECTION 6.As of the first day of the month following the satisfaction of each of the conditions set            forth in the preceding sentence, then the following shall occur:              SECTION 7.            SECTION 8.(A)   the monthly installments of principal and interest that would otherwise be due and            payable under the applicable Advance shall be reduced to an amount that is one-half of the amount that            would  otherwise be  due and  payable under  such  Advance for a period  equal to  the  lesser  of  (1)  the            remaining term of such Promissory Note or (2) six months (the “Reduced Payment Period” and such            amount, the “Reduced Payment Amount”);             SECTION 9.(B)   at Your option, the deferred principal and interest may be paid (1) on the last day            of the Reduced Payment Period or (2) over the remaining Loan Term.  In no event shall the Maturity            Date of any applicable Promissory Note be extended; and             SECTION 10.(C)  amended and restated Promissory Notes shall be issued by You in favor of Us to            evidence these reduced payment amounts and the repayment of the deferred amounts elected by You.    SECTION 11.Pro Rata Payments.  All payments on account of any Advance (whether of principal, interest, interim  payment, fees or otherwise) shall be payable to Lenders based on their respective Pro Rata Shares.  Miscellaneous.  Payments  are  due  electronically  by  automatic  debit  through  Automated  Clearing  House  (ACH)  payment  on  or  before  the  first  day  of  each  month.  You  agree  to  fill  out  and  execute  the  electronic  funds  transfer/automatic debit Authorization forms that We provide. If We do not receive any payments from You within  two (2) Business Days after they are due, You will pay the applicable Person a late charge on the overdue amount.  The late charge will be equal to five percent (5%) of the amount due for each month not paid when due and until such  time as payment is received. All payments shall be free and clear of any taxes, withholdings, duties, impositions or  other charges, to the end that each of Us will receive the entire amount of any Secured Obligations payable to Us  under this Agreement, regardless of the source of payment.  Any interest not paid when due shall be compounded by  becoming a part of the Secured Obligations, and such interest shall then accrue interest at the rate then applicable  under this Agreement and the applicable Promissory Note.     10.   INSURANCE   SECTION 12.So long as there are any Secured Obligations outstanding (other than inchoate indemnity obligations),  You shall carry and maintain commercial general liability insurance, against risks customarily insured against in Your  line of business.  All such insurance shall be in form, with companies, and in amounts reasonably acceptable to Us (it  being understood that the coverage levels and insurance providers as in effect on the Closing Date are satisfactory to Us).   Such risks shall include the risks of bodily injury, including death, property damage, personal injury, advertising injury,  and contractual liability.  You must maintain a minimum of One Million Dollars ($1,000,000) of commercial general  liability insurance for each occurrence.  So long as there are any Secured Obligations outstanding (other than inchoate  indemnity obligations), You shall also carry and maintain insurance upon the Collateral, insuring against all risks of  physical loss or damage howsoever caused, including the perils of fire, windstorm, flood, and earthquake, in an amount  not less than the full replacement cost of the Collateral.  You shall also carry and maintain a fidelity insurance policy in  an amount not less than One Million Dollars ($1,000,000) as a policy limit.  SECTION 13.You  shall submit to  Us certificates of insurance, which reflect  Your compliance  with  Your insurance  obligations in the above paragraph and the obligations contained in this Section.  Your insurance certificate shall state                                                                                    11 

 

that We are an additional insured for commercial general liability, an additional insured and a lender loss payee for all  risk property damage insurance, and a loss payee for fidelity insurance.  Attached to the certificates of insurance will be  additional  insured  endorsements  for  liability  and  lender’s  loss  payable  endorsements  for  all  risk  property  damage  insurance and fidelity insurance.    SECTION 14.The certificates of insurance will state that the coverage evidenced is primary and non-contributory to any  insurance or Our self-insurance, and will further state that a waiver of subrogation in favor of Us has been agreed to.  All  certificates of insurance will provide for a minimum of thirty (30) days advance written notice to Us of cancellation.  Any  failure by Us to scrutinize such insurance certificates for compliance is not a waiver of any of Our rights, all of which are  reserved.   11.   REPRESENTATIONS AND WARRANTIES FROM YOU   You represent and warrant that:  Þ  Collateral Title.  You own all right, title and interest in and to the Collateral, free of all Liens whatsoever, except     for Permitted Liens.  Þ  Granting of Lien.  You have the full power and authority to, and do grant and convey to Collateral Agent, a Lien     on the Collateral as security for the Secured Obligations, free of all Liens other than Permitted Liens and shall execute     such notices, assignments, and control agreements, in connection herewith as We may reasonably request to perfect     and obtain the priority of Collateral Agent’s Lien on the Collateral.  Except for Permitted Liens, the Collateral is not     subject to any Liens. You are not presently a party to, nor bound by, any material lease, license, contract or agreement     which prohibits You or any  of Your Subsidiaries from granting a Lien on such lease, license, contract or other     agreement (to the extent such prohibition is enforceable under applicable law).  Þ  Due Organization.  You are a corporation duly organized, legally existing and in good standing under the laws of     the State of Delaware with corporate organization number 5421106 for CASPER SLEEP INC.,  State of Delaware     with  corporate  organization  number 7015371 for  CASPER  SLEEP  RETAIL  LLC  and State  of Delaware with     corporate organization number 5929920 for CASPER SCIENCE INC and are duly qualified as a foreign corporation     in all jurisdictions in which the nature of Your business or location of Your properties require such qualifications     and where the failure to be qualified could reasonably be expected to have a Material Adverse Effect.  Þ  Authorization, Validity and Enforceability.  Your execution, delivery and performance of the Promissory Notes,     this Agreement, all financing statements, all other Loan Documents, and all Excluded Agreements, (i) have been     duly authorized by all necessary corporate action, and (ii) will not result in the creation or imposition of any Lien     upon the Collateral, other than the Liens created by this Agreement and the other related Loan Documents.  The     person or people executing this Agreement and other Loan Documents are duly authorized to do so, and the Loan     Documents executed by or on behalf of any of You and each term and provision thereof are Your legal, valid and     binding  obligations,  enforceable  in  accordance  with  their  respective  terms,  subject  to  applicable  bankruptcy,     insolvency, reorganization or other similar laws generally affecting the enforcement of the rights of creditors and     equitable principles (regardless of whether enforcement is sought in equity or at law).  Þ  Litigation.  Except as set forth in Schedule 1, there are no actions, suits or proceedings at law or in equity or by or     before any governmental authority now pending or, to the knowledge of any of You, threatened in writing against     or affecting any of You or any of  the business, property or rights of any of You (i) which involve any Loan Document     or Excluded Agreement or (ii)  could reasonably be expected to, individually or in the aggregate, result in a Material     Adverse Effect.   Þ  Compliance with Applicable Laws.  None of You are in violation of any law, rule or regulation or in default with     respect to any judgment, writ, injunction or decree of any governmental authority, where such violation or default     could reasonably be expected to result in a Material Adverse Effect.   Þ  Conflict.  Neither this Agreement nor any other Loan Document (a) violates any provisions of the articles or     certificate of incorporation, or bylaws of any of You, or any law, regulation, order, injunction, judgment, decree     or writ to which any of You are subject or (b) conflicts with or results in the breach or termination of, constitutes     a default under or accelerates or permits the acceleration of any performance required by, any material lease,     agreement or other contract to which any of You are a party or by which any of You or any of Your property is     bound.  Þ  Further Consent.  The execution, delivery and performance of this Agreement and the other Loan Documents     do not require the consent or approval of any other Person, including any regulatory authority, or governmental     body of the United States or any State or any political subdivision of the United States or any state.                                                                                    12 

 

Þ  Material Adverse Effect.  Since December 31, 2018, no event that has had or could reasonably be expected to have     a Material Adverse Effect has occurred or is continuing.   Þ  Other Defaults.  None of You is in default in any manner under any provision of any indenture or other agreement     or instrument evidencing Indebtedness, or any other material agreement or instrument to which any of You are a     party or by which any of You or any of the properties or assets of any of You are or may be bound, in each case     where such default could result in an event which, individually or together with any other event, could reasonably     be expected to have a Material Adverse Effect.  Þ  Other Agreement.  None of You is a party to any agreement or instrument or subject to any corporate restriction     that has resulted or could reasonably be expected to result in a Material Adverse Effect.  Þ  Information  Correct.  No  information,  report,  Advance  Request,  financial  statement,  exhibit  or  schedule     furnished by or on behalf of any of You to Us in connection with the negotiation of any Loan Document contains     or will contain any material misstatement of fact or omitted, omits or will omit to state any material fact necessary     to make the statements, in the light of circumstances under which they were, are or will be made, not misleading     (it being recognized by Us that projections and estimates as to future events are not to be viewed as facts and that     the actual results during the period or periods covered by any such projections and estimates may differ materially     from projected or estimated results).  Þ  Filing of Taxes.  You have filed all federal, state and material local tax returns required to be filed by You (or     filed appropriate extensions for the filing of such returns), except to the extent such failure to file has not resulted     in the creation of a Lien.  Subject to Section 12, Paragraph “Taxes”, You have fully paid or You have reserved     for and are contesting in good faith all taxes or installments (including any interest or penalties except if such     taxes, assessments, deposits and contributions do not, individually or in the aggregate, exceed Two Hundred Fifty     Thousand  Dollars  ($250,000).   You  have  fully  paid  or  reserved  for  and  are  contesting  in  good  faith  all  tax     assessments  that any  of  You  have received for  the  3 years  preceding  the  Closing  Date except if  such  taxes,     assessments,  deposits  and  contributions  do  not,  individually  or  in  the  aggregate,  exceed  Two  Hundred  Fifty     Thousand Dollars ($250,000).  Þ  ERISA Compliance.  You have met the minimum funding requirements of ERISA with respect to any employee     benefit plans subject to ERISA.  No event has occurred resulting from the failure by any of You to comply with     ERISA that is reasonably likely to result in any of You incurring any liability that could reasonably be expected     to have a Material Adverse Effect.  Þ  Hazardous Waste.  None of the properties or assets of any of You has ever been used by any of You or, to the     knowledge of any of You, by previous owners or operators, in the disposal of, or to produce, store, handle, treat,     release, or transport, any hazardous waste or hazardous substance other than in accordance with applicable law;     to the knowledge of any of You, none of the properties or assets of any of You has ever been designated or     identified in any manner pursuant to any environmental protection statute as a hazardous waste or hazardous     substance disposal site, or a candidate for closure pursuant to any environmental protection statute; no Lien arising     under any environmental protection statute has attached to any revenues or to any real or personal property owned     by any of You; and none of You have received a summons, citation, notice, or directive from the Environmental     Protection Agency or any other federal, state or other governmental agency concerning any action or omission by     any of You resulting in the releasing, or otherwise disposing of hazardous waste or hazardous substances into the     environment. You  have  at  all  times  operated  Your  business  in  compliance  in all  material respects  with  all     applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage     or disposal of hazardous materials or substances.  Þ   Operation of Business.  You own, possess, have access to, or can become licensed on reasonable terms under all     patents, patent applications, trademarks, trade names, inventions, franchises, licenses, permits, computer software     and copyrights necessary for the operation of Your business as now conducted, with no known infringement of,     or conflict with, the rights of others.  You have taken reasonable measures to avoid liability from infringement by     third  parties  using  Your facilities,  in  particular that  You  have complied  with  the  requirements  of  the  Digital     Millennium Copyright Act for notice and takedown, if applicable. You have at all times operated Your business     in compliance in all material respects with all applicable provisions of the federal Fair Labor Standards Act, as     amended.  Þ  Trading with the Enemy Act; OFAC; Patriot Act.  Neither You nor any of Your Subsidiaries is an “enemy”     or an “ally of the enemy” within the meaning of Section 2 of the Trading with the Enemy Act or any enabling     legislation or executive order relating thereto.  Neither You nor any of Your Subsidiaries is in violation of (a) the     Trading  with  the  Enemy  Act,  (b) any  of the foreign assets  control regulations  of the  United  States Treasury                                                                                    13 

 

   Department (31 C.F.R., Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating     thereto, or (c) the Patriot Act.    Þ  Investment Company Act.  Neither You nor any of Your Subsidiaries are (a) an "investment company" or is     "controlled"  by  an  "investment  company",  as  such  terms  are  defined  in,  or subject  to  regulation  under,  the     Investment Company Act of 1940, (b) otherwise subject to any other regulatory scheme limiting its ability to     incur debt or requiring any approval or consent from, or registration or filing with, any governmental authority in     connection with Your or its incurrence of debt, (c) and is not a “person” related to Us as described in Sections     57(b) or 57(e) of the Investment Company Act of 1940.  Þ  Your Information.  Your present name, former names (if any) used in the past five (5) years, locations, and other     information are correctly and completely stated on the Certificate of Perfection attached as Exhibit C, as updated     from time to time.  Þ  Intellectual Property.  The Certificate of Perfection attached as Exhibit C contains a true, correct and complete     list  of  each  of  Your  Patents,  Trademarks,  Copyrights  and  Licenses,  together  with  application  or  registration     numbers, as applicable, as updated from time to time.  Þ  Accounts.  The Certificate of Perfection attached as Exhibit C contains a true, correct and complete list of (a) all     banks and other financial institutions at which You maintain Deposit Accounts and (b) institutions at which You     maintain  accounts  holding  Investment  Property  owned  by  You,  and  such  Certificate  of  Perfection  correctly     identifies the name, address and telephone number of each bank or other institution, the name in which the account     is held, a description of the purpose of the account, and the complete account number therefore, as updated from     time to time.  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, rule, or law in respect of such Collateral.   12.   YOUR COVENANTS TO US   SECTION 15.So long as the Secured Obligations have not been Paid in Full, each of You covenants to the following:  Þ  Legal  Existence  and  Qualification.  Each  of  You  will  maintain  Your,  and  each  of  Your  Subsidiaries’,  legal     existence and good standing in Your and their respective jurisdictions of formation or organization, and maintain     qualifications to do business in all jurisdictions in which the nature of Your business or location of Your properties     require such qualifications and where the failure to be qualified could reasonably be expected to result in an event     which, individually or together with any other event, would have a Material Adverse Effect.  Þ  Compliance with Laws.  Each of You will, and will cause each of Your Subsidiaries to, comply with all laws     (including, without limitation, environmental laws) rules, regulations applicable to, and all orders and directives of     any governmental or regulatory authority having jurisdiction over, You, Your Subsidiaries or Your business, and     with all material agreements to which You or any of Your Subsidiaries are a party, except where the failure to so     comply  could  not  reasonably  be  expected  to  have  a  Material  Adverse  Effect.   None of  You  nor  any  of  Your     Subsidiaries shall become an “investment company” or controlled by an “investment company,” within the meaning     of the Investment Company Act of 1940, or become principally engaged in, or undertake as one of Your important     activities, the business of extending credit for the purpose of purchasing or carrying margin stock, or use the proceeds     of any loan for such purpose.  None of You, nor any Your Subsidiaries shall fail to meet the minimum funding     requirements of ERISA, permit a reportable event or prohibited transaction, as defined in ERISA, to occur, or fail to     comply in all material respects with the Federal Fair Labor Standards Act.  Þ  Management Rights.  Subject to the limitations set forth under “Audits and Inspections”, each of You will permit     any of Our authorized representatives and Our attorneys and accountants on reasonable notice to inspect, examine     and make copies and abstracts of Your books of account and records at reasonable times and during normal business     hours.  In addition, We and Our agents, attorneys and accountants will have the right to meet with the management     and officers of any of You to discuss such books of account and records at reasonable times and during normal     business hours.  In addition, We will be entitled at reasonable times and intervals to consult with and advise the     management  and  officers  of  any  of  You  concerning  significant  business  issues.  Such  consultations  shall  not     unreasonably interfere with Your business operations.  The Parties intend that the rights granted here shall constitute     “management  rights”  within  the  meaning  of  29  C.F.R  Section  2510.3-101(d)(3)(ii),  but  that  any  advice,     recommendations or participation with respect to any business issues will not be deemed to give Us, nor be deemed     an exercise by Us or control over the management or policies of any of You. Further, each Party represents and     warrants that each Lender has offered to make available to each of You “significant managerial assistances” (as     defined in Section 2(a)(47) of the Investment Company Act of 1940) and, to the extent You accept such offer from                                                                                    14 

 

   any Lender, the scope, terms and conditions of such significant managerial assistance shall be set forth in a separate     agreement between You, the applicable Lender and such Lender’s administrator.  Þ  Additional Documents and Assurances.   Each of You will from time to time execute, deliver and file, alone or     with Us, any security agreements, or other documents to perfect or give first priority (subject to Permitted Liens that     are specifically designated as being senior in priority) to Collateral Agent’s Lien on the Collateral.  Each of You will     from time to time obtain any instruments or documents as We may reasonably request, and take all further action     that may be reasonably necessary or desirable, or that We may reasonably request, to carry out the provisions and     purposes of this  Agreement  or any other Loan  Document or to confirm, perfect, preserve and protect the Liens     granted  to  Collateral  Agent.   In  addition,  each  of  You  authorize  Collateral  Agent  to  file  at  any  time  financing     statements,  continuation  statements,  and  amendments  thereto  and  applications  for  registration  that  (i)  either     specifically  describe  the  Collateral  or  describe  the  Collateral  as  all  of  Your  assets  or  words  of  similar  effect,     regardless of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC     of such jurisdiction, and (ii) contain any other information required by the UCC or under the relevant jurisdiction     for the sufficiency of filing office acceptance of any financing statement, continuation statement, or amendment or     application  for  registration,  including  whether  You  are  an  organization,  the  type  of  organization  and  any     organizational identification number (or equivalent information) issued to You, if applicable.  Each of You hereby     appoint Collateral Agent as its lawful attorney-in-fact to sign Your name on any documents necessary to perfect or     continue  the  perfection  of  any  Lien  regardless  of  whether  an  Event  of  Default  has  occurred  until  all  Secured     Obligations have been Paid in Full.  Collateral Agent’s foregoing appointment as the attorney in fact for each of     You, and all of Collateral Agent’s rights and powers, coupled with an interest, are irrevocable until all Secured     Obligations have been Paid in Full.  Þ  Protection of Collateral Agent’s Lien.  Each of You will take or cause to be taken all actions necessary to protect     and defend Your title to the Collateral and Collateral Agent’s Lien on the Collateral.  Each of You shall at all times     keep the Collateral, and the assets and properties of each of Your Subsidiaries, free and clear from any legal process     or Liens whatsoever (except  for  Permitted Liens) and shall give  Us prompt  written  notice of any legal  process     affecting the Collateral or the assets and properties of Your Subsidiaries, or any Liens on the Collateral or the assets     and properties of Your Subsidiaries (except for Permitted Liens).    Þ  Maintenance of Properties.  Each of You will maintain and protect Your properties, assets and facilities (and     those of Your Subsidiaries), including Your equipment and fixtures, in good working order, repair and condition     (taking  into  consideration  ordinary  wear  and  tear)  and  from time  to  time  make  or  cause  to  be  made  all     commercially  reasonable  repairs,  renewals  and replacements  and  shall completely  manage  and care  for  Your     property in accordance with prudent industry practices.  Þ  Financial Statements.  Each of You will provide monthly and yearly financial statements in accordance with     Section 18 of this Agreement, and such financial statements will include reports of any material contingencies     (including commencement of any material litigation by or against You) of which You know or should knowor     any  other  occurrence  that could  reasonably  be expected to  have,  individually  or in the  aggregate,  a  Material     Adverse Effect.   Þ  Audits and Inspections.  Upon Our request, each of You will, during normal business hours, make the Inventory,     Equipment, other Collateral, and books and records concerning the Collateral (including software used in Your     business) available to Us for inspection at the place where it is located and shall make Your log and maintenance     records pertaining to the Inventory and Equipment available to Us for inspection; provided that so long as no     Event of Default has occurred and is continuing, You shall only be responsible for the cost of one such audit and     inspection per calendar year.  You will take all action necessary to correctly and completely maintain such books,     records, logs, and maintenance records.  Þ  Taxes.  Each of You will pay when due all of Your federal income taxes, all state taxes imposed by each of Your     states of organization and the state of Your principal place of business and all of Your other material taxes, fees     or other charges of any nature whatsoever (together with any related interest or penalties) imposed or assessed     against any of You, Us or the Collateral or upon Your ownership, possession, use, operation or disposition thereof     or upon Your rents, receipts or earnings arising therefrom (excluding taxes imposed on Us based on Our net     income  or  franchise taxes) in  each case except if  such  taxes, assessments,  deposits and  contributions  do  not,     individually or in the aggregate, exceed Two Hundred Fifty Thousand Dollars ($250,000).  Each of You shall file     on or before the due date all federal, state and local tax returns including personal property tax returns in respect     to the Collateral on or before the due date thereof, except if such taxes, assessments, deposits and contributions     do  not,  individually  or  in  the  aggregate,  exceed  Two  Hundred  Fifty  Thousand  Dollars  ($250,000).      Notwithstanding the foregoing, each of You may contest, in good faith and by appropriate proceedings, taxes,     fees and other charges for which You maintain adequate reserves in accordance with GAAP.                                                                                    15 

 

Þ  Intellectual Property.  Each of You will:  (a) use commercially reasonable efforts to protect, defend and maintain     the  validity  and  enforceability  of  Your  Intellectual  Property;  (b)  promptly  advise  Us  in  writing  of  material     infringements of Your Intellectual Property of which You have actual knowledge; (c) not allow any Intellectual     Property material to Your business to be abandoned, forfeited or dedicated to the public without Our written     consent; and (d) give Us written notice of any applications or registrations of Your Intellectual Property, including     the date of such filings and the applicable application or registration numbers within thirty (30) days after the end     of each calendar quarter.    Þ  Subsidiaries.  If at any time, any of You create or acquire any Subsidiary, You and such subsidiary will promptly     notify Us of the creation or acquisition of such new Subsidiary and take all such action as We may reasonably     require to cause such Subsidiary to guaranty the Secured Obligations and grant to Collateral Agent a continuing     pledge and security interest in and to the assets of such Subsidiary, and You shall grant and pledge to Collateral     Agent (subject to the Lien granted to the Working Capital LenderSenior Agent under the Working CapitalSenior     Loan FacilityDocuments)  a  first  priority,  perfected  security  interest  in  the  stock,  units  or  other  evidence  of     ownership of such Subsidiary. Notwithstanding the foregoing, a Foreign Subsidiary that is not a Material Foreign     Subsidiary shall not be required to guaranty the Secured Obligations and none of You shall be required to grant a     Lien  upon  more  than  65%  of  the  equity  interests  of  any  Foreign  Subsidiary  that  is  not  a  Material  Foreign     Subsidiary.  Þ  Dispositions,  Liens  and  Encumbrances.  None  of  You  will  nor  will You permit any  of  Your  Subsidiaries to,     transfer, sell, assign, grant a security interest in, hypothecate, permit or suffer to exist any Lien, or otherwise transfer     any interest in or encumber any portion of Your properties or assets (or those of any Subsidiary), including the     Intellectual Property, either voluntarily or involuntarily, without Our prior written consent, other than: (a) Permitted     Liens, (b) sales of Inventory in the ordinary course of business, (c) non-exclusive licenses or non-perpetual exclusive     licenses with respect to geographic area, fields of use and customized products for specific customers that would not     result in a transfer of title of the licensed property under applicable law, all given in the ordinary course of Your     business, (d) sales of worn-out or obsolete Equipment not financed by Us provided that the fair market value of such     Equipment does not exceed $100,000 in any fiscal year, and (e) bulk sales or other dispositions of Your inventory     not in the ordinary course of business, in all cases, at arm’s length, provided, that such dispositions shall not exceed     Five Million Dollars ($5,000,000) in the aggregate in any fiscal year;  and (f) so long as no Event of Default then     exists or would arise therefrom, the sale, transfer or other disposition of other assets owned by You or any of Your     Subsidiaries that do not in the aggregate exceed Five Hundred ThousandOne Million Dollars ($500,0001,000,000)     during any fiscal year.  In addition, none of You will, nor will You permit any of Your Subsidiaries to, enter into     any agreement  with any  Person  (other than Us or the Working Capital LenderSenior Agent)  that  restricts Your     ability, or the ability of any of Your Subsidiaries, to transfer, sell, assign, grant a security interest in, hypothecate,     permit or suffer to exist any Lien, or otherwise transfer any interest in or encumber any portion of Your properties     or assets or those of any of Your Subsidiaries, including Your Intellectual Property, except as otherwise permitted     hereunder.  Without limiting the generality of the foregoing, none of You will sell, transfer, encumber or otherwise     dispose of any ownership interest that You may have in any Subsidiary (except as permitted under the Working     Capital Loan FacilitySenior Credit Agreement, subject to the Working CapitalSenior Intercreditor Agreement).  Þ  Mergers or Acquisitions.  None of You will, nor will You permit any of Your Subsidiaries to, liquidate, dissolve     or enter into or consummate any Merger Event, and none of You will acquire all or substantially all of the capital     stock or property of another Personenter into any Acquisition, except that you may enter into a Permitted Acquisition     subject to the terms hereunder or a Subsidiary (i) may merge into any of You or another Subsidiary of You, or (ii)     may liquidate or dissolve, provided that its assets are transferred to You.  Þ  Compromise of Accounts.  Without Our prior written consent, none of You will (a) grant any material extension     of the time or payment of any of the Receivables, or General Intangibles, except in the ordinary course of business     and consistent with customary industry practice, (b) to any material extent, compromise, compound or settle the     same for less than the full amount, except in the ordinary course of business and consistent with customary industry     practice,  (c)  release,  wholly  or  partly,  any  Person  liable  for  the payment,  or  (d)  allow  any  credit  or  discount     whatsoever other than trade discounts granted to You in the ordinary course of Your business and consistent with     customary industry practice.  Þ  Other Indebtedness.  None of You will, nor will You permit any of Your Subsidiaries to, incur any Indebtedness     without the prior written consent of Us other than Indebtedness evidenced by this Agreement and the Permitted     Indebtedness.  Þ  Investments.  None of You will, nor will You permit any of Your Subsidiaries to, directly or indirectly make any     Investment other than Permitted Investments.                                                                                    16 

 

Þ  Dividends and Distributions.  None of You will, without Our prior written consent, declare or pay any cash     dividend  or  make  a  distribution  on,  or  repurchase  or  redeem,  any  class  of  stock, other  than  (a)  pursuant  to     repurchase plans upon an employee’s, consultant’s or director’s death or termination of employment provided the     aggregate amount of all such repurchases does not exceed One Hundred Thousand Dollars ($100,000) per fiscal     year, (b) dividends payable solely in shares of Your common stock, (c) conversions of convertible securities into     other securities pursuant to the terms of such convertible securities, (d) payments in cash in lieu of fractional     shares  upon  conversion  of  convertible  securities  or  upon  any  stock  dividend,  stock  split  or  combination  or     business combination otherwise permitted by this Agreement, (d) acquisitions of Your capital stock solely by     issuance  of capital  stock, in  connection  with either  (i)deemed to  occur  upon the  exercise  of  stock  options or     warrants by way of cashless exercise, or (ii) in connection with the satisfaction of withholding tax obligations     related to the exercise of stock options, warrants or other convertible or exchangeable securities if such capital     stock represents a portion of the exercise, conversion or exchange price thereof and repurchases of capital stock     deemed to occur upon the withholding of a portion of the capital stock granted or awarded to a current or former     officer, director, employee or consultant to pay for the taxes payable by such Person upon such grant or award     (or upon vesting thereof), provided that, such payments pursuant to this clause (d) shall not exceed an aggregate     amount of Two Million, Five Hundred Thousand Dollars ($2,500,000) in any fiscal year;, (e) any repurchase of     the stock of former employees, consultants, officers and directors pursuant to stock repurchase agreements (i) in     an aggregate amount not to exceed Five Hundred ThousandOne Million Dollars ($500,0001,000,000) in any fiscal     year so long as an Event of Default does not exist prior to such repurchase or would not exist after giving effect     to  such  repurchase  and  (ii)  in  any  amount  where  the  consideration  for  the  repurchase  is  the  cancellation  of     indebtedness owed by such former employees to You regardless of whether an Event of Default exists and (f)     distributions  the  proceeds  of  which  will  be  used  to  pay  taxes  imposed  on  You  and  associated  with  Your     membership in a consolidated, combined, or other similar tax group.  Þ  Collateral  Locations;  Name  Changes.  None  of  You  will  relocate,  nor  will  You  permit  any  Subsidiary  to     relocate, Your (or such Subsidiary’s) chief executive office or principal place of business or store any item of the     Collateral (or assets of any such Subsidiary) within the United States other than (a) locations where the aggregate     original cost of Collateral located as such location is less than $1,000,000 and (b) Inventory or other assets in     transit, unless: (i) You have given Us no less than fifteen (15) days prior written notice, and (ii) You have obtained     and shall maintain such acknowledgments, consents, waivers and agreements from: (A) in the case of a relocation     of such chief executive office or principal place of business, the landlord of Your Chief Executive Office, (B) in the     case of other locations within the United States where the original cost of such Collateral stored at such locations     exceeds  $1,000,000, the  owner or landlord (as applicable) with respect to  such  location.   Without  limiting  the     foregoing, where the Collateral located within the United States with an original cost of $1,000,000 or more for     any  given location is  covered  by  a  negotiable  Document  (such  as  a  warehouse  receipt),  You  shall  deliver  to     Collateral Agent possession of such Document.  Notwithstanding the foregoing, to the extent a landlord waiver     or bailee letter has been provided to the Working Capital LenderSenior Agent for a location (whether or not it     falls into a category above), You shall provide Us with same.  None of You will change Your name without     providing Us at least 30 days’ advance written notice.  None of You will change Your type of     organization or legal structure without Our prior written consent.  Þ  Line of Business.  None of You will engage in, nor will You permit any of Your Subsidiaries to engage in, any     business  other  than the  businesses  currently  engaged in  by  You  and  Your  Subsidiaries  or  reasonably  related     thereto.  Þ  Change of Jurisdiction.  None of You will change Your state of organization unless You have obtained Our     prior written consent, which consent shall not be unreasonably withheld.  You must give Us no less than thirty     (30) days prior written notice.  Þ  Deposit and Investment Accounts.  None of You will maintain, nor permit any of Your Subsidiaries to maintain,     any  Deposit  Accounts  or accounts  holding  Investment  Property  owned  by  any of  You  (or  such  Subsidiaries)     except  (i)  accounts  identified  in  the  Certificate  of  Perfection  attached  as Exhibit  C with  respect  to  which     Collateral Agent has a perfected security interest, (ii) accounts located outside of the United States provided that     the funds in such accounts shall not exceed $2,500,000 in the aggregate as any time, (iii) accounts used exclusively     used,  healthcare  benefit  claims  and  other  benefit  payments  to  or  for  the  benefit  of  any  of  Your  employees     established and used in the ordinary course of business, (iv) any deposit account of any of You used solely for     fiduciary or trust purposes, including tax withholding accounts (to the extent maintained by any of You solely for     the  purpose  of  maintaining  or  holding  such  tax  withholding  amounts  payable  to  applicable  governmental     authorities),  (v)  segregated  deposit  accounts  holding  Cash  and  cash  equivalents  representing  Liens  securing     Indebtedness permitted pursuant to clauses (g) or (j) of the definition of Permitted Indebtedness so long as such     Liens are limited to Cash collateral accounts in amounts no greater than 105% of the amount of such indebtedness                                                                                     17 

 

   (the accounts in the foregoing clauses (ii) and ,(iii), (iv) and (v) collectively, the “Excluded Accounts”) and (vvi)     other  accounts  with  respect  to  which  Collateral  Agent  has  a  perfected  security  interest  (subject  to  Permitted     Liens).  You  will  give  Us  prior  written  notice  of  the  creation  of any  Deposit  Accounts  or  accounts  holding     Investment Property.  Þ  Transactions with Affiliates.  None of You will directly or indirectly enter into or permit to exist any material     transaction with any of Your Affiliates except for (i) transactions that are in the ordinary course of Your business,     upon  fair  and  reasonable  terms  that  are  no  less  favorable to  You than  would  be  obtained  in  an arm’s  length     transaction with a non-affiliated Person, (ii) equity financings with Your existing investors that are not prohibited     under this Agreement, (iii) unsecured bridge financings with Your existing investors that are not prohibited under     this Agreement and that constitute Subordinated Indebtedness and are evidenced by a subordination agreement     on terms acceptable to Us in Our sole discretion and (iv) transactions among You or Your Subsidiaries that are     not  otherwise  prohibited  by  this  Agreement.   None  of  You  will  directly  or  indirectly  make  any  payment  or     distribution on account of any intercompany liabilities or indebtedness other than the type described in item (h)     of the definition of Permitted Indebtedness.  Þ  Indebtedness. You will not prepay, redeem or otherwise satisfy in any manner prior to the scheduled repayment     thereof  any  Indebtedness  for  borrowed  money  (other  than the  Advances  andSenior Indebtedness under  the     Working Capital Loan Facility), and You shall not make or permit any payment on any Permitted Convertible     Indebtedness or Subordinated Indebtedness, except under the terms of the subordination, intercreditor, or other     similar agreement to which such Subordinated Indebtedness is subject, or amend any provision in any document     relating to the Subordinatedsuch Indebtedness which would increase the amount thereof or adversely affect the     subordination thereof to Secured Obligations owed to Us.  Þ  OFAC and Patriot Act.  None of You will, directly or indirectly, use the proceeds of the Advances, or lend,     contribute or otherwise make available such proceeds to any Subsidiary, Affiliate, joint venture partner or other     Person, to fund any activities or business of or with any Person, or in any country or territory, that, at the time of     such funding, is the subject of any sanctions administered by OFAC, or in any other manner that would result in     a violation of OFAC sanctions by any Person, including any Person participating in any capacity in the Advances.      You will not, and will not permit any of Your Subsidiaries to, (a) be or become subject at any time to any law,     regulation or list of any governmental authority of the United States (including the OFAC list) that prohibits or     limits Us from making any Advance or extension of credit to You or from otherwise conducting business with     You, or (b) fail to provide certificates or documentary or other evidence of Your identity as may be requested by     Us at any time to enable Us to verify Your identity or to comply with any applicable law or regulation, including     Section 326 of the Patriot Act at 31 U.S.C. Section 5318.   13.   YOU AGREE TO INDEMNIFY AND PROTECT US   SECTION 16.You agree to indemnify and hold Us, Our officers, directors, employees, agents, attorneys, representatives  and shareholders (each, an “Indemnitee”) harmless from and against any and all claims, costs, expenses, damages and  liabilities (including such claims, costs, expenses, damages and liabilities based on liability in tort, including strict liability  in  tort  but  excluding  any taxes  which  shall  be  governed  by  Section  20),  including  reasonable  attorneys'  fees  and  disbursements  and  other  costs  of  investigation  or  defense  (including  those  incurred  upon  any  appeal),  that  may  be  instituted or asserted against or incurred by any Indemnitee as the result of credit having been extended, suspended or  terminated under this Agreement and the other Loan Documents or the administration of such credit, or in connection  with or arising out of the transactions contemplated  or any actions or failures to act in connection with, or arising out of  the disposition or utilization of the Collateral, excluding in all cases, claims, costs, expenses, damages and liabilities to  the extent resulting from such Indemnitee’s gross negligence or willful misconduct or fraud or bad faith.   SECTION 17.   14.   WHAT IS AN EVENT OF DEFAULT   SECTION 18.The occurrence of any one or more of the following events shall constitute an “Event of Default” under  this Agreement:  Þ  Payment.  You do not pay any principal, interest, fees, costs or other Secured Obligations under this Agreement,     the Promissory Notes or any of the other related Loan Documents on the due date; or  Þ  Covenant.  Any of You fail to perform any covenant or Secured Obligations under this Agreement, the Promissory     Notes or any of the other related Loan Documents, and You fail to cure such breach (to the extent that such breach                                                                                   18 

 

   is capable of being cured) within ten (10) days after the earlier of (i) We give You written notice or (ii) Your actual     knowledge of such default; provided, however, that if the default cannot by its nature be cured within the ten (10)     day period or cannot after diligent attempts by You be cured within such ten (10) day period, and such default is     likely to be cured within a reasonable time, then You shall have an additional period (which shall not in any case     exceed thirty (30) days) to attempt to cure such default, and within such reasonable time period the failure to cure     the default shall not be deemed an Event of Default (but no Advances shall be made during such cure period); or  Þ  Misrepresentations.  Any of You or any Person acting for any of You makes any representation, warranty, or other     statement now or later in this Agreement, any other Loan Document, or any Excluded Agreement or in any writing     delivered to Us or to induce Us to enter this Agreement, any other Loan Document, or any Excluded Agreement,     and such  representation,  warranty, or other statement is incorrect in any  material respect when  made, provided,     however, that such materiality qualifier shall not be applicable to any representation, warranty or statement that     already is qualified or modified by materiality in the text thereof; or  Þ  Bankruptcy; Attachment; Other.        Þ             Any of You (i) assigns Your assets for the benefit of Your creditors, (ii) becomes insolvent     or becomes unable to pay Your debts as they become due, or becomes unable to pay or perform Your obligations     under the Loan Documents or Excluded Agreements, (iii) files a voluntary petition in bankruptcy, (iv) files any     petition,  answer,  or  document seeking  for  itself  any  reorganization,  arrangement,  composition,  readjustment,     liquidation,  dissolution  or  similar  relief  under  any  present  or  future  statute,  law  or  regulation  pertinent  to  such     circumstances, (v) seeks or consents to or acquiesces in the appointment of any trustee, receiver, or liquidator of     itself or of all or any substantial part of its assets or property, (vi) ceases operation of Your business as Your business     has normally been conducted, or terminates substantially all of Your employees, or (vii) have Your directors or     majority shareholders take any action initiating any of the foregoing actions described in this paragraph; or        Þ             Either (i) forty-five (45) days shall have expired after the commencement of an involuntary     action against any of You seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution     or similar relief under any present or future statute, law or regulation, without such action being dismissed or all     orders or proceedings thereunder affecting Your operations or the business being stayed; or (ii) a stay of any such     order or proceeding shall thereafter be set aside and the action setting it aside shall not be timely appealed; or (iii) any     of You shall file any answer admitting or not contesting the material allegations of a petition filed against You in     any such proceedings; or (iv) the court in which such proceedings are pending shall enter a decree or order granting     the relief sought in any such proceedings; or        Þ             Forty-five  (45)  days  shall  have  expired  after  the  appointment,  without  Your  consent  or     acquiescence, of any trustee, receiver or liquidator of any of You or of all or any substantial part of the properties of     any of You without such appointment being vacated; or   Þ  Agreements with Us.  The occurrence of any default under any other Loan Document, any Excluded Agreement,     or any other agreement between any of You and/or any of Your Subsidiaries and Us (other than any default embodied     in or covered by any clause of this Section 14) and such default continues for more than twenty (20) days after the     earlier of (i) We have given notice of such default to You, or (ii) You have actual knowledge of such default; or  Þ  Other Agreements.  The occurrence of any default (other than any default embodied in or covered by any other     clause of this Section 14) that has not been cured or waived within any applicable grace period under any lease, loan,     or  other  agreement  or  obligation  of  any  of  You  involving  any  Indebtedness  which  aggregates  more  than     $1,000,0002,500,000; or  Þ  Judgments.  The entry of (a) any judgment or arbitration award against any of You involving a judgement or an     award in excess of $1,000,0002,500,000 or that could reasonably be expected to have a Material Adverse Effect that     is not covered by insurance by a solvent insurance carrier that has confirmed coverage in writing, has not been,     discharged, bonded or stayed on appeal within thirty (30) days; or (b) any judgment or arbitration award against You     in which You are enjoined, restrained or in any way prevented from conducting all or any material part of Your     business or affairs; or  Þ  Change  of  Control.   Except  as  otherwise  permitted  under  this  Agreement,  the  occurrence  of  any  event  or     transaction, including the sale or exchange of outstanding shares of Your capital stock or the capital stock of any of     Your Subsidiaries, or series of related events or transactions, resulting in (a) the holders of such outstanding capital     stock immediately before consummation of such event or transaction, or series of related events or transactions, do     not, immediately after consummation of such event or transaction or series of related events or transactions, retain,     directly or indirectly, capital stock representing at least 50% of the voting power of the surviving Person of such     event or transaction or series of related events or transactions, in each case without regard to whether You or any of                                                                                    19 

 

   Your Subsidiaries are the surviving Person, (b) any Person or “group” (other than a Person that is a stockholder on     the  Closing  Date)  shall  obtain  “beneficial  ownership”  (as  such  terms  are  defined  under  Section  13d-3  of  and     Regulation 13D under the Securities Exchange Act of 1934), either directly or indirectly, of more than 40% of Your     outstanding capital stock having the right to vote for the election of directors under ordinary circumstances and such     Person or “group” beneficially owns more of such stock than the aggregate amount held by Persons or “groups” that     were  held  stock  entitled  to  vote  on  the  Closing  Date),  or  (c)  except  in  connection  with  a  transaction  expressly     permitted by this Agreement, You cease to own and control all of the economic and voting rights associated with all     of the outstanding capital stock of Your Subsidiaries.  Notwithstanding anything to the contrary in this paragraph,     Your issuance of capital stock in an initial public offering or to venture capital or private equity firms in connection     with a bona fide round of equity financing (including the conversion of Indebtedness in connection with such equity     financing) for capital raising purposes shall not be deemed an Event of Default under this paragraph; or  SECTION 19.Þ Investor Support.  We have determined, in Our good faith judgment, that it is the intention of Your     current equity investors to not continue to fund, or arrange for the funding of, You in the amounts and timeframe     reasonably necessary to enable You to satisfy the Secured Obligations as they become due and payable; or  SECTION 20.Þ Officers.  The individuals holding the offices of Your Chief Executive Officer, President, or Chief     Financial Officer as of the Closing Date shall for any reason cease to hold such offices or be actively engaged in     Your day-to-day  management, unless an interim replacement acceptable to Your board of directors is appointed     within  ninety  (90)  days of  such cessation and a non-interim  successor acceptable to Your board of  directors is     appointed within one hundred eighty (180) days of such cessation; or  Þ  Guaranty Documents.  (a) Any guaranty of any Secured Obligations terminates or ceases for any     reason  to  be  in  full  force  and  effect;  (b)  any  Guarantor  does  not  perform  any  obligation  or     covenant under any guaranty of the Secured Obligations or any Event of Default occurs under     any security agreement or other agreement between Us and any Guarantor; (c) any event or     circumstance described in paragraphs 3 through 8 of this Section 14 occurs with respect to any     Guarantor, or (d) the death, liquidation, administration, winding up, or termination of existence     of any Guarantor (as applicable).   15.   WHAT HAPPENS UPON AN EVENT OF DEFAULT   SECTION 21.If an Event of Default has occurred and is continuing, We can at Our option (or in the case of the fourth  and fifth paragraphs below, Collateral Agent may), and without notice to any of You:  Þ  Terminate Our commitment to make any future Advances under this Agreement;   Þ  Terminate Our obligation to permit the principal, interest, fees, costs or other amounts owed by You to Us to remain     outstanding;   Þ  Recover all sums due and accelerate and demand payment of all or any part of the principal, interest, fees, costs or     other amounts owed by any of You to Us and declare them to be immediately due and payable (provided, that upon     the occurrence of a default of the type described in the fifth paragraph of Section 14 (i.e. “Bankruptcy; Attachment;     Other”), the Promissory Notes and all of the principal, interest, fees, costs or other amounts owed by any of You to     Us shall automatically be accelerated and made immediately due and payable, in each case without any further notice     or act);  Þ  Settle or adjust disputes and claims directly with the account debtors of any of You for amounts, upon terms and in     whatever order that Collateral Agent reasonably considers to be advisable;  Þ  Enter  the  premises  of  any  of  You,  without  notice  and  process  of  law  and  in  compliance  with  Your  security     requirements, to remove and repossess the Collateral without being liable to any of You for damages due to the     repossession,  except  those  resulting from  Our  or  Our  assignees’  negligence  and  charge  You  for  the  cost  of     repossession, storing and shipping the Collateral.  With respect to any premises that any of You own, You hereby     grant to Collateral Agent a license to enter into possession of such premises and to occupy the same, without charge,     in order to exercise any of Our rights or remedies provided herein, at law, in equity, or otherwise; and  Þ  Pursue any other remedy permitted by law, equity or otherwise.  Þ  Upon and after an Event of Default, the unpaid principal and accrued interest on the Promissory Notes and Advances     and  all  outstanding  principal,  interest,  fees,  costs  or  other  amounts  owed  by  any  of  You  to  Us,  including  all     professional fees and expenses, shall thereafter bear interest at the Default Rate.                                                                                    20 

 

SECTION 22.If  an  Event  of  Default  has  occurred  and  is  continuing,  Collateral  Agent  may  exercise  all  rights  and  remedies with respect to the Collateral under this Agreement or the other Loan Documents or otherwise available to it  under the UCC and other applicable law, including the right to release, hold, sell, lease, liquidate, collect, realize upon,  or otherwise dispose of all or any part of the Collateral and the right to occupy, utilize, process and commingle the  Collateral.   Upon the  occurrence and  during the continuation of an Event of Default, each of You  hereby  grants to  Collateral Agent a license and right, to use, without charge, the labels, patents, copyrights, rights of use of any name,  trade secrets, trade names, trademarks, service marks, and advertising matter, or any property of a similar nature of any  of You, as it pertains to the Collateral, in completing production of, advertising for sale, and selling any Collateral.  In  connection with Our exercise of Our rights under this Agreement and the other Loan Documents, each of the rights of  any of You under all licenses and all franchise agreements shall inure to Our benefit.  All Our rights and remedies shall  be cumulative and not exclusive.  SECTION 23.In addition to the power of attorney granted by each of You to Collateral Agent in Section 12, effective  only upon the occurrence and during the continuance of an Event of Default, each of You hereby irrevocably appoints  Collateral Agent (and any of its designated officers, agents, attorneys  or employees) as Your true and lawful attorney to:   (a) send requests for verification of Receivables or notify account debtors of its security interest in the Receivables; (b)  endorse Your name on any checks or other forms of payment or security that may come into its possession; (c) sign Your  name  on  any  invoice  or  bill  of  lading  relating  to  any  Receivable,  drafts  against  account  debtors,  schedules  and  assignments of Receivables, verifications of Receivables, and notices to account debtors; (d) dispose of any Collateral;  (e) make, settle, and adjust all claims under and decisions with respect to Your policies of insurance; (f) settle and adjust  disputes and claims respecting the Accounts directly with account debtors, for amounts and upon terms which Collateral  Agent determines to be reasonable.  Collateral Agent’s appointment as the attorney in fact for each of You, and each and  every one of Collateral Agent’s rights and powers, being coupled with an interest, is irrevocable until all of the Secured  Obligations have been Paid in Full.   16.   WHAT HAPPENS IF YOU ARE IN DEFAULT AND WE EXERCISE OUR REMEDIES   SECTION 24.If an Event of Default has occurred and is continuing, Collateral Agent may, at any time or from time to  time, apply, collect, liquidate, sell in one or more sales, lease or otherwise dispose of, any or all of the Collateral, in its  then condition or following any commercially reasonable preparation or processing, in such order as it may elect.  Any  such sale may be made either at public or private sale at the place of business of any of You or elsewhere.  Each of You  agrees that any such public or private sale may occur upon Collateral Agent’s ten (10) calendar days’ prior written notice  to You.  Collateral Agent may require any of You to assemble the Collateral and make it available to it at a place it  designates that is reasonably convenient to it.  The proceeds of any sale, disposition or other realization upon all or any  part of the Collateral shall be applied in the following order of priorities:        First, to Us in an amount sufficient to pay in full Our costs and professionals’ and advisors’ fees and expenses;        Second, to Us in an amount equal to the then unpaid amount of all the principal, interest, fees, costs or other        amounts owed by any of You to Us, in such order and priority as We may choose in Our sole discretion        (provided that all amounts applied to any category of Secured Obligations relating to the Advances or other        amounts  that  are  based  on  Lenders’  Pro  Rata  Shares  shall  be  allocated  between  Lenders  based  on  their        respective Pro Rata Shares, and all amounts applied to any other category of Secured Obligations shall be        applied pro rata to each of Us based on Our respective portion thereof); and        Finally, after the Payment in Full of the Secured Obligations, to any creditor holding a junior Lien on the        Collateral, or to any of You or Your representatives or as a court of competent jurisdiction may direct.   17.   CROSS-GUARANTY   Cross-Guaranty.  Each of You hereby agrees that You are jointly and severally liable for, and hereby absolutely and  unconditionally guarantees to Us and Our respective successors and assigns, the full and prompt payment (whether at  stated maturity, by acceleration or otherwise) and performance of all Secured Obligations owed or hereafter owing to  Us by the other of You.  Each of You agrees that Your guaranty obligation hereunder is a continuing guaranty of  payment and performance and not of collection, that Your obligations under this Section shall not be discharged until  payment  and  performance,  in full,  of the  Secured  Obligations  has  occurred,  and  that  Your obligations  under this  Section shall be absolute and unconditional, irrespective of, and unaffected by:   Þ     the  genuineness,  validity,  regularity,  enforceability  or  any  future  amendment  of,  or  change  in,  this        Agreement, any other Loan Document or any other agreement, document or instrument to which any of You        are or may become a party;                                                                                    21 

 

Þ     the absence of any action to enforce this Agreement (including this Section) or any other Loan Document or        the waiver or consent by Us with respect to any of the provisions thereof;  Þ     the existence,  value  or condition  of,  or  failure to  perfect Our  Lien against,  any  security  for  the  Secured        Obligations or any action, or the absence of any action, by Us in respect thereof (including the release of any        such security);   Þ     the insolvency of any of You; or  Þ     any other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of        a surety or guarantor.  SECTION 25.Each of You shall be regarded, and shall be in the same position, as principal debtor with respect to the  Secured Obligations guaranteed hereunder.  SECTION 26.Waivers.  Each of You expressly waives all rights any of You may have now or in the future under  any statute, or at common law, or at law or in equity, or otherwise, to compel Us to marshal assets or to proceed in  respect of the Secured Obligations guaranteed hereunder against the other of You, any other party or against any  security for the payment and performance of the Secured Obligations before proceeding against, or as a condition to  proceeding against, You.  It is agreed among each of You and Us that the foregoing waivers are of the essence of the  transaction contemplated by this Agreement and the other Loan Documents and that, but for the provisions of this  Section and such waivers, We would decline to enter into this Agreement.  SECTION 27.Benefit of Guaranty.  Each of You agrees that the provisions of this Section are for Our benefit and  the benefit of Our respective successors, transferees, endorsees and assigns, and nothing herein contained shall impair,  as between any other Person and Us, the obligations of such Person under the Loan Documents.  SECTION 28.Waiver of Subrogation, Etc.  Notwithstanding anything to the contrary in this Agreement or in any  other Loan Document, and except as set forth herein, each of You hereby expressly and irrevocably waives any and  all rights at law or in equity to subrogation, reimbursement, exoneration, contribution, indemnification or set off and  any and all defenses available to a surety, guarantor or accommodation co-obligor.  Each of You acknowledges and  agrees that this waiver is intended to benefit Us and shall not limit or otherwise affect Your liability hereunder or the  enforceability  of  this  Section,  and  that  We  and  Our  respective  successors  and  assigns  are  intended  third  party  beneficiaries of the waivers and agreements set forth in this Section.  SECTION 29.Election of Remedies.  If We may, under applicable law, proceed to realize Our benefits under any of  the Loan Documents giving Us a Lien upon any Collateral, whether owned by any of You or by any other Person,  either by judicial foreclosure or by non-judicial sale or enforcement, We may, at Our sole option, determine which of  Our remedies or rights We may pursue without affecting any of Our rights and remedies under this Section.  If, in the  exercise of any of Our rights and remedies, We shall forfeit any of Our rights or remedies, including Our right to enter  a deficiency judgment against any of You or any other Person, whether because of any applicable laws pertaining to  “election of remedies” or the like, each of You hereby consents to such action by Us and waives any claim based upon  such action, even if such action by Us shall result in a full or partial loss of any rights of subrogation that any of You  might otherwise have had but for such action by Us.  Any election of remedies that results in the denial or impairment  of any right of Ours to seek a deficiency judgment against any of You shall not impair the respective obligations of  the rest of You to pay the full amount of the Secured Obligations.  In the event We shall bid at any foreclosure or  trustee’s sale or at any private sale permitted by law or the Loan Documents, We may bid all or less than the amount  of the Secured Obligations and the amount of such bid need not be paid by Us but shall be credited against the Secured  Obligations.  The amount of the successful bid at any such sale, whether We are or any other party is the successful  bidder, shall be conclusively deemed to be the fair market value of the Collateral and the difference between such bid  amount and the remaining balance of the Secured Obligations shall be conclusively deemed to be the amount of the  Secured Obligations guaranteed under this Section, notwithstanding that any present or future law or court decision  or ruling may have the effect of reducing the amount of any deficiency claim to which  We might otherwise be entitled  but for such bidding at any such sale.  Limitation.  Notwithstanding any provision herein contained to the contrary, the liability of each of You under this  Section (which liability is in any event in addition to amounts for which You are primarily liable under this Agreement)  shall be limited to an amount not to exceed as of any date of determination the greater of: (a) the net amount of the  amounts advanced to the other of You under this Agreement and then re-loaned or otherwise transferred to, or for the  benefit of, the other of You; and (b) the amount that could be claimed by Us from the other of You under this Section  without rendering such claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under  any  applicable  state  Uniform  Fraudulent  Transfer  Act,  Uniform  Fraudulent  Conveyance  Act  or  similar  statute or  common law after taking into account, among other things, Your right of contribution and indemnification from the  other of You under this Section.                                                                                   22 

 

Contribution with Respect to Guaranty Obligations.      Þ  To the extent that any of You shall make a payment under this Section of all or any of the Secured Obligations        (a  “Guarantor  Payment”)  that,  taking  into  account  all  other  Guarantor  Payments  then  previously  or        concurrently made by such Person, exceeds the amount that such Person would otherwise have paid if each        of  You  had  paid  the  aggregate  Secured  Obligations  satisfied  by  such  Guarantor  Payment  in  the  same        proportion that such Person’s Allocable Amount (as defined below) (as determined immediately prior to such        Guarantor Payment) bore to the aggregate Allocable Amounts of all of You as determined immediately prior        to the making of such Guarantor Payment, then, following Payment in Full of the Secured Obligations, such        Person shall be entitled to receive contribution and indemnification payments from, and be reimbursed by,        the other of You for the amount of such excess, pro rata based upon their respective Allocable Amounts in        effect immediately prior to such Guarantor Payment.      Þ  As of any date of determination, the “Allocable Amount” of any of You shall be equal to the maximum        amount of the claim that could then be recovered from such Person under this section without rendering such        claim voidable or avoidable under Section 548 of Chapter 11 of the Bankruptcy Code or under any applicable        state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act or similar statute or common        law.     Þ  This subsection is intended only to define the relative rights of each of You and nothing set forth in this        subsection is intended to or shall impair the obligations of each of You, jointly and severally, to pay any        amounts as and when the same shall become due and payable in accordance with the terms of this Agreement,        including subsection “Cross-Guaranty” above.  Nothing contained in this subsection shall limit the liability        of any of You to pay the Advances made directly or indirectly to You and accrued interest, fees and expenses        with respect thereto, for which You shall be primarily liable.     Þ  The Parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute        assets of the Person to which such contribution and indemnification is owing.     Þ  The rights of the indemnifying Persons against other Persons under this subsection shall be exercisable upon        the Payment in Full of the Secured Obligations.   Liability Cumulative.  The liability of each of You under this Section is in addition to and shall be cumulative with  all liabilities of each of You to Us under this Agreement and the other Loan Documents to which You are a party or  in respect of any Secured Obligations or obligation of each of You, without any limitation as to amount, unless the  instrument or agreement evidencing or creating such other liability specifically provides to the contrary.   18.   DOCUMENTS YOU WILL PROVIDE US   SECTION 30.Upon signing this Agreement You will provide Us with each of the following documents on or before  the Closing Date:  Þ  Executed originals of this Agreement, and all other documents and instruments that We may reasonably require;  Þ  Executed originals of the English Share Charge.  Þ  Secretary’s certificate of incumbency and authority for each of You;  Þ  Certified  copy  of  resolutions  of  each  of  Your  boards  of  directors  approving  this  Agreement,  the  associated     Warrant  Agreement(s)  and the other  Loan  Documents and the transactions evidenced  by  this  Agreement,  the     associated Warrant Agreement(s)  and the other Loan Documents;  Þ  Certified copy of Certificate of Incorporation/Formation and By-Laws for each of You, as amended through the     Closing Date;  Þ  A certificate of good standing from the State of incorporation of each of You, and similar certificates from all other     jurisdictions  where  any  of  Your  Subsidiaries  do  business  and  where  the  failure  to  be  qualified,  individually  or     collectively, could reasonably be expected to have a Material Adverse Effect;  Þ  Certified  copy  resolutions  of  the  board  of  directors  and  shareholders  of  the  English  Subsidiary  approving     amendments to the English Subsidiary’s articles of association;  Þ  A certificate of the director of the English Subsidiary confirming, amongst other things (i) the up to date shareholding     of the English Subsidiary and (ii) either:                                                                                   23 

 

          Þ  a statement confirming that:               SECTION 31.                                    §   each member of the group has  complied with the relevant timeframe with any notice it has                      received pursuant to Part 21A of the Companies Act 2006 from You; and                  §   no "warning notice" or "restrictions notice" (in each case as defined in Schedule 1B of the                      Companies Act 2006) has been issued in respect of those shares,               together  with  a  copy  of  the  "PSC  register"  (within  the  meaning of  section  790C(10)  of  the               Companies Act 2006) of the English Subsidiary, which is certified by an authorised signatory of the               English Subsidiary to be correct, complete and not amended or superseded as at a date no earlier               than the date of this Agreement; or             Þ  a certificate of an authorised signatory of the English Subsidiary certifying that it is not  required to               comply with Part 21A of the Companies Act 2006;=  Þ  Original share certificate(s) to the extent not held by the Working Capital LenderSenior Agent and undated stock     transfer forms in respect of the English Subsidiary’s shares;  Þ  Receipt by Us from You of a bona-fide executed term sheet in which You have agreed to issue and sale additional     shares of Your preferred stock for aggregate gross cash proceeds of at least $25,000,000 (excluding any amounts     received upon conversion or cancellation of indebtedness).  Þ  Your budget and business plan of the current fiscal year;  Þ  Executed Certificate of Perfection, attached as Exhibit C;   Þ  Executed Managerial Assistance Acknowledgement Letter, attached as Exhibit F;  Þ  Executed original of the Collateral Agency Agreement, executed by Us;  Þ  A favorable written opinion of Your legal counsel, addressed to Us and dated on the Closing Date, covering such     matters relating to You and the Loan Documents as We shall reasonably request; and    Þ  Any such other documents as We may reasonably request.   SECTION 32.You will provide Us with each of the following documents on or before the Commitment Date:  Þ  Payment of the Facility Fee for the Commitment Amount as denoted in the Table of Terms;   SECTION 33.Until Payment in Full of the Secured Obligations, each of You shall provide Us with:  SECTION 34.Financial Statements. Within thirty (30) days after the end of each month, You will provide Us with  (a) a consolidated, unaudited income statement, statement of cash flows, and an unaudited balance sheet prepared in  accordance with GAAP (except for the absence of footnotes and subject to year-end adjustments) accompanied by a  report detailing any material contingencies, and (b) copies of all board packages delivered to the board of directors of  any of You in connection with board meetings or otherwise which may be redacted for highly confidential information  and protected and privileged information.  Within one hundred eighty (180) days of the end of each fiscal year end,  You will provide Us with audited financial statements prepared on a consolidated basis accompanied by an audit  report and an unqualified opinion of an independent certified public accountant.  Within five (5) Business Days of  approval thereof by Your board of directors, but in any event no later than sixty (60) days following the end of each  fiscal year, each of You will provide Us a budget and business plan for the next fiscal year.  Each of You will provide  Us any additional information (including, but not limited to, tax returns, income statements, balance sheets and names  of principal creditors) as We reasonably believe are necessary to evaluate the continuing ability of each of You to  meet Your financial obligations to Us.  These statements should be emailed to Us at financials@triplepointcapital.com,  or upon Our prior approval, sent by facsimile or mail to Us at the address listed in the Table of Terms.   Following Your initial public offering, if applicable, any financial statement required to be furnished pursuant to this  Section 18 shall be deemed to have been furnished on the date on which You have filed such financial statement with  the U.S. Securities and Exchange Commission and is available on the EDGAR website on the Internet at www.sec.gov  or any successor government website that is freely and readily available to Us without charge provided, that You shall  give notice of any such filing to Us.  Notwithstanding the foregoing, the Borrower shall deliver paper or electronic  copies of any such financial statement to the Us if We request You to furnish such paper or electronic copies until  written notice to cease delivering such paper or electronic copies is given by Us.                                                                                     24 

 

Other Information.  (a) Within five (5) Business Days after the closing of  any equity financing, or extension of an  existing  round of  equity  financing, occurring  after  the  Closing  Date, in  which  You  issue preferred  stock  or other  securities  You  will  provide  Us  with  copies  of  the  fully  executed  equity  financing  documents,  including  without  limitation the related stock purchase agreement, investors rights agreement, voting agreement, amended or restated  Certificates of Incorporation, current capitalization table and other related documents and (b) within thirty (30) days  after completion You shall provide Us with any 409A Valuation Reports or other similar reports prepared for You.  SECTION 35.Certificate of Compliance.  Within five (5) Business Days after the end of each calendar quarter, each  of You will provide Us with a Certificate of Compliance in the form attached as Exhibit D.   19.   [RESERVED]   SECTION 36.This section reserved.   20.   OTHER LEGAL PROVISIONS YOU WILL ABIDE BY  SECTION 37.Continuation of Security Interest.  This is a continuing agreement and the grant of the security interest  and Lien hereunder or any other Loan Document shall remain in full force and effect and all of Our rights, powers and  remedies shall continue to exist until the Payment in Full of all Secured Obligations.  We shall file a termination statement  or discharge document, as applicable, and provide proof of filing to You promptly (and in any event within five (5)  Business Days) after the Payment in Full of the Secured Obligations, reassigning to You, without recourse except for  Our acts, the Collateral and all rights conveyed hereby and returning possession of the Collateral to You.  Our rights,  powers and remedies shall be in addition to all rights, powers and remedies given  by  statute or  rule  of law and are  cumulative.  The exercise of any one or more of the rights, powers and remedies provided herein or in any other Loan  Document shall not be construed as a waiver of or election of remedies with respect to any of Our other rights, powers  and remedies.  SECTION 38.Entire Agreement.  This Agreement and associated Promissory Notes supersede all other oral or written  agreements  or  understandings  between  the  Parties  concerning  the  transactions  contemplated  hereby.   ANY  AMENDMENT  OF  THIS  AGREEMENT  OR  A  PROMISSORY  NOTE  MAY  ONLY  BE  ACCOMPLISHED  THROUGH A DOCUMENT WITH SIGNATURES FROM EACH OF THE PARTIES TO SUCH DOCUMENT (AND  FOR THE AVOIDANCE OF DOUBT, ANY AMENDMENT OF ANY PROMISSORY MUST BE EXECUTED BY  THE LENDER TO WHICH SUCH PROMISSORY NOTE WAS ISSUED).   SECTION 39.Headings.  Headings used in this Agreement are for reference and convenience of the Parties only and  shall have no substantive effect in the interpretation of this Agreement.  No  Waiver.  No  action  taken  by  Us  or  You  will  be  deemed  to  constitute  a  waiver  of  compliance  with  any  representation, warranty or covenant contained in this Agreement or Promissory Note.  The waiver by Us of a breach  of any provision of this Agreement or a Promissory Note will not operate or be construed as a waiver of any subsequent  breach.  Survival  of  Obligations.  The  indemnification,  obligations,  representations  and  warranties  contained  in  this  Agreement, any Promissory Note or in any document delivered in connection with those agreements are for the benefit  of the Parties and survive the execution, delivery, expiration or termination of this Agreement.  Tax Indemnification.  You agree to pay, and to hold Us harmless from, any and all liabilities with respect to, or  resulting from any delay in paying, any and all excise, sales, or other similar taxes (excluding taxes imposed on or  measured by net income (however denominated), franchise taxes, branch profits taxes, or  taxes) that may be payable  or  determined  to  be  payable  with  respect  to  any  of  the  Collateral  or  in  connection  with  any  of  the  transactions  contemplated by this Agreement. Any withholding taxes paid by You with respect to obligations You owe to Us under  this Agreement, any Note and the Warrant Agreements shall be treated as paid by You, to Us, for all purposes of the  applicable agreements provided such taxes are remitted to the appropriate governmental authority.  SECTION 40.Successors and Assigns.  The provisions of this Agreement and the other Loan Documents shall inure to  the benefit of and be binding on each of You and Your permitted assigns (if any).  None of You shall assign Your  obligations under this Agreement, the Promissory Notes or any of the other Loan Documents without Our express prior  written consent, and any such attempted assignment shall be void and of no effect.  Each of You acknowledges and  understands that We  may  sell and assign all or part of  Our respective interests hereunder and under the Promissory  Note(s) and all other related Loan Documents to any person or entity to be known as assignee.   After such assignment  the term “We,” “Us,” and “Our” (and “Lender” if the assignor is assigning any of its interests as a Lender, and “Collateral  Agent” if the assignor is the Collateral Agent) as used in the Loan Documents will mean and include such assignee, and  such assignee will be vested with all Our rights, powers and remedies hereunder (including, as applicable, as a Lender or                                                                                   25 

 

as Collateral Agent) and shall have Our duties with respect to the interest that each of You have granted Us (including,  as applicable, as a Lender or as Collateral Agent); but with respect to any such interest not so transferred, We shall retain  all rights, powers and remedies.  No such assignment will relieve any of You of any of Your obligations.  We agree that  in the event of any transfer of the Promissory Note(s), We will denote on the Promissory Note a notation as to the portion  of the principal and interest of the Promissory Note(s), which shall have been paid at the time of such transfer and the  date of the transfer.  SECTION 41.Consent To  Jurisdiction  And Venue.  All judicial proceedings arising in or under  or related to this  Agreement, the Promissory Notes or any of the other Loan Documents may be brought in any state or federal court of  competent jurisdiction located in the State of California.  By execution and delivery of this Agreement, each Party hereto  generally and unconditionally: (a) consents to personal jurisdiction in San Mateo County, State of California; (b) waives  any objection as to jurisdiction or venue in San Mateo  County, State of California; (c) agrees not to assert any defense  based on lack of jurisdiction or venue in the aforesaid courts; and (d) irrevocably agrees to be bound by any judgment  rendered thereby in connection with this Agreement, the Promissory Notes or the other Loan Documents.  Service of  process  on  any Party hereto in any action  arising  out of or relating to this  Agreement shall  be effective if  given in  accordance with the requirements for notice set forth in this Section, and shall be deemed effective and received as set  forth therein.  Nothing herein shall affect the right to serve process in any other manner permitted by law or shall limit  the right of either Party to bring proceedings in the courts of any other jurisdiction.  SECTION 42.Mutual  Waiver  Of  Jury  Trial;  Judicial  Reference.  Because  disputes  arising  in  connection  with  complex financial transactions are most quickly and economically resolved by an experienced and expert person and the  Parties wish applicable state and federal laws to apply (rather than arbitration rules), the Parties desire that their disputes  be resolved by a judge applying such applicable laws.  EACH OF THE PARTIES SPECIFICALLY WAIVES ANY  RIGHT  THEY  MAY  HAVE  TO  TRIAL  BY  JURY  OF  ANY  CAUSE  OF  ACTION,  CLAIM,  CROSS-CLAIM,  COUNTERCLAIM,  THIRD  PARTY  CLAIM  OR  ANY  OTHER  CLAIM  (COLLECTIVELY,  “CLAIMS”)  ASSERTED BY ANY OF YOU AGAINST US OR OUR ASSIGNEE OR BY US OR OUR ASSIGNEE AGAINST  ANY OF YOU. IN THE EVENT THAT THE FOREGOING JURY TRIAL WAIVER IS NOT ENFORCEABLE, ALL  CLAIMS, INCLUDING ANY AND ALL QUESTIONS OF LAW OR FACT RELATING THERETO, SHALL, AT  THE WRITTEN REQUEST OF ANY PARTY, BE DETERMINED BY JUDICIAL REFERENCE PURSUANT TO  THE CALIFORNIA CODE OF CIVIL PROCEDURE (“REFERENCE”). THE PARTIES SHALL SELECT A SINGLE  NEUTRAL REFEREE, WHO SHALL BE A RETIRED STATE OR FEDERAL JUDGE.  IN THE EVENT THAT THE  PARTIES CANNOT AGREE  UPON A REFEREE, THE REFEREE  SHALL BE  APPOINTED BY THE COURT.   THE  REFEREE  SHALL  REPORT  A  STATEMENT  OF  DECISION  TO  THE  COURT.   NOTHING  IN  THIS  SECTION SHALL LIMIT THE RIGHT OF ANY PARTY AT ANY TIME TO EXERCISE LAWFUL SELF-HELP  REMEDIES, FORECLOSE AGAINST COLLATERAL OR OBTAIN PROVISIONAL REMEDIES.  THE PARTIES  SHALL BEAR THE FEES AND EXPENSES OF THE REFEREE EQUALLY UNLESS THE REFEREE ORDERS  OTHERWISE.  THE REFEREE SHALL ALSO DETERMINE ALL ISSUES RELATING TO THE APPLICABILITY,  INTERPRETATION,  AND  ENFORCEABILITY  OF  THIS  SECTION.  THE  PARTIES  ACKNOWLEDGE  THAT  THE CLAIMS WILL NOT BE ADJUDICATED BY A JURY.  THIS WAIVER EXTENDS TO ALL SUCH CLAIMS,  INCLUDING CLAIMS THAT INVOLVE    PERSONS  OTHER  THAN  ANY  OF YOU AND  US; CLAIMS  THAT  ARISE OUT OF OR ARE IN ANY WAY CONNECTED TO THE RELATIONSHIP     BETWEEN  YOU  AND  US;  AND  ANY  CLAIMS  FOR  DAMAGES,  BREACH  OF  CONTRACT,  SPECIFIC  PERFORMANCE,  OR  ANY  EQUITABLE OR LEGAL RELIEF OF ANY KIND, ARISING OUT OF THIS AGREEMENT, ANY OTHER LOAN  DOCUMENT OR ANY OF THE EXCLUDED AGREEMENTS.                                                                                     26 

 

SECTION 43.Professional  Fees.  Each  of  You  promises  to  pay  or  reimburse  on  demand,  any  and  all  reasonable  professional fees and expenses incurred by Us whether before or after the execution of this Agreement in connection  with  or  related to:  the Loan  Documents, the  Excluded  Agreements, or  the  Secured  Obligations; the administration,  collection, or enforcement of the  Secured  Obligations; amendment or  modification  of the Loan  Documents and the  Excluded Agreements; any waiver, consent, release, or termination under the Loan Documents or Excluded Agreements;  the protection, preservation, sale, lease, liquidation, inspection, audit or disposition of, or other action related to, the  Collateral or the exercise of remedies with respect to the Collateral; or any legal, litigation, administrative, arbitration, or  out of court proceeding in connection with or related to any of You or the Collateral, and any appeal or review thereof;  and any bankruptcy, restructuring, reorganization, assignment for the benefit of creditors, workout, foreclosure, or other  action related to any of You, the Collateral, the Loan Documents, or the Excluded Agreements, including representing  Us in any adversary proceeding or contested matter commenced or continued by or on behalf of the estate of any of You,  and any appeal or review thereof.  Our professional fees and expenses shall include fees or expenses for Our attorneys,  accountants,  auditors,  auctioneers,  liquidators,  appraisers,  investment  advisors,  environmental  and  management  consultants, or experts engaged by Us in connection with the foregoing.  The promise of each of You to pay all of Our  reasonable professional fees and expenses is part of the Secured Obligations under this Agreement. Notwithstanding  anything to the contrary contained herein, You shall not be liable for any professional fees or expenses incurred by Us to  the extent (i) arising from any Indemnified Person’s gross negligence, violations or alleged violations of law or willful  misconduct, or (ii) arising in connection with Our assignment, sale or participation of all or any portion of Our rights and  obligations under this Agreement, Loan Documents or any Excluded Agreement, unless such assignment or sale is in  connection with the exercise of Our remedies in connection with an Event of Default that has occurred and is continuing.  SECTION 44.Revival of Secured Obligations.  This Agreement and the Loan Documents shall remain in full force  and effect and continue to be effective if any petition is filed by or against any of You for liquidation or reorganization,  if any of You become insolvent or make an assignment for the benefit of creditors, if a receiver or trustee is appointed  for all or any significant part of the assets of any of You, or if any payment or transfer of Collateral is recovered from Us.   The  Loan Documents,  the  Secured  Obligations  and  Collateral  Agent’s  Lien  on  the  Collateral  shall  continue  to  be  effective, or shall be revived or reinstated, as the case may be, if at any time payment and performance of the Secured  Obligations or any transfer of Collateral to Us, or any part thereof is rescinded, avoided or avoidable, reduced in amount,  or must otherwise be restored or returned by, or is recovered from, Us or by any obligee of the Secured Obligations,  whether as a “voidable preference,” “fraudulent conveyance,” or otherwise, all as though such payment, performance, or  transfer of Collateral had not been  made.  In the event that any payment, or any part thereof, is rescinded, reduced,  avoided, avoidable, restored, returned, or recovered, the Loan Documents and the Secured Obligations shall be deemed,  without any further action or documentation, to have been revived and reinstated except to the extent of the full, final,  and indefeasible payment to Us in cash.  Notices. Any notice, request or other communication to any of the Parties by any other will be given in writing and  deemed received upon the earliest of (1) actual receipt, (2) three (3) days after mailing if mailed postage prepaid by  regular or airmail to Us or You, at the address set out in the Table of Terms, and (3) one (1) day after it is sent by  courier or overnight delivery.  Applicable Law.  This Agreement and any Promissory Note will have been made, executed and delivered in the State  of California and will be governed and construed for all purposes in accordance with the laws of the State of California,  excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be deemed an  original, but all such counterparts together constitute one and the same instrument.   Signatures.  This Agreement and any Promissory Note may be executed and delivered by facsimile or transmitted  electronically in either Tagged Image Format Files (“TIFF”) or Portable Document Format (“PDF”) and, upon such  delivery, the facsimile, TIFF or PDF signature, as applicable, will be deemed to have the same effect as if the original  signature had been delivered to the other party.  Confidentiality.  All  financial  information  and  other  non-public  information  (other  than  any  such  information  contained in periodic reports filed by any of You with the Securities and Exchange Commission) disclosed by any of  You to Us shall be considered confidential for purposes of this Agreement.  In handling any confidential information,  We will exercise the same degree of care that We exercise for Our own proprietary information, but disclosure of  information  may  be  made  (i) to  Our  subsidiaries  or  Affiliates in connection  with their  business  with any  of  You  (provided they agree to abide by the provisions hereof), (ii) to prospective transferees or purchasers of any interest in  the Loans (provided, however, We shall use best efforts in obtaining such prospective transferee’s agreement of the  terms of this provision and any purchaser shall be agreeing to assume the obligations hereunder and therefore agreeing  to abide by the  provisions  hereof,  including,  without  limitation, the  provisions  of  this  Section), (iii) as We deem  necessary or appropriate to any bank, financial institution or other similar entity, provided, however, that such bank,                                                                                    27 

 

financial institution or other similar entity agrees in writing to maintain the confidentiality of such information, (iv) to  S&P, Moody’s, Fitch and/or other ratings agency, as We deem necessary or appropriate, provided, however, that such  financial  institution  or  ratings  agency  shall  be  informed  of  the  confidentiality  of  such, (v)  as  required  by  law,  regulation,  subpoena, or  other  order,  (vi)  to  the  extent  requested  by any  regulatory  authority,  (vii)  as  required  in  connection  with  Our  examination  or  audit  and  (viii)  as  We  consider  appropriate  exercising  remedies  under  this  Agreement after the occurrence and during the continuation of an Event of Default.  Confidential information does  not include information that either: (a) is in the public domain or in Our possession when disclosed to Us, or becomes  part of the public domain after disclosure to Us, in each case through no fault of Our own; or (b) is disclosed to Us by  a third party, if We do not know that the third party is prohibited from disclosing the information. Notwithstanding  the above, each of You hereby consents to the use by Us of the company name and logo of any of You for advertising,  promotional and marketing purposes only. Such use may reference the type of credit facility but will not indicate the  amount of the credit facility without Your prior written approval.   Working  CapitalSenior Intercreditor  Agreement.  This  Agreement  is  subject  to  the Working  CapitalSenior  Intercreditor Agreement by and between Us and the Working Capital Lender.   21.   DEFINITIONS   SECTION 45.Capitalized terms used in this Agreement shall have the following meanings:  SECTION 46.“Account” means any “account,” as such term is defined in the UCC, which any of You now own or  acquire or in which any of You now hold or acquire any interest and in any event, shall include, without limitation,  all  accounts  receivable,  book  debts and  other  forms  of  obligations  (other than  forms  of  obligations evidenced  by  Chattel Paper, Documents or Instruments) that any of You now own, receive or acquire or belongs or is owed or  becomes belonging or owing to any of You (including, without limitation, under any trade name, style or division  thereof) whether arising out of goods sold or services that any of You render or from any other transaction, whether  or not the same involves the sale of goods or services by any of You (including, without limitation, any such obligation  that may be characterized as an account or contract right under the UCC) and all of any of Your rights in, to and under  all purchase orders or receipts now owned or acquired by any of You for goods or services, and all of any of Your  rights  to  any goods  represented  by  any  of  the  foregoing  (including,  without  limitation,  unpaid  seller's  rights  of  rescission, replevin, reclamation and stoppage in transit and rights to returned, reclaimed or repossessed goods), and  all monies due or to become due to any of You under all purchase orders and contracts for the sale of goods or the  performance of services or both by any of You or in connection with any other transaction (whether or not yet earned  by performance on the part of any of You), now in existence or occurring, including, without limitation, the right to  receive the proceeds of said purchase orders and contracts, and all collateral security and guarantees of any kind given  by any Person with respect to any of the foregoing.  SECTION 47.“Acquisition” means, with respect to any Person (a) an investment in, or a purchase of, a controlling  interest in the capital stock or other equity interests of any other Person, (b) a purchase or other acquisition of all or  substantially all of the assets or properties of, another Person or of any business unit, division or line of business of  another Person, or (c) any merger or consolidation of such Person with any other Person or other transaction or series  of transactions resulting in the acquisition of all or substantially all of the assets, or of any business unit, division or  line of business of another Person, or a controlling interest in the capital stock or other equity interests, of any Person,  in each case in any transaction or group of transactions which are part of a common plan.  SECTION 48.“Advance” has the meaning given to it in Section 1.  SECTION 49.“Advance  Date” means,  with  respect  to  each  specific  Advance,  the  day on  which  We  make  such  Advance to You.  SECTION 50.“Advance Request” means any request for an Advance to be executed and delivered from time to time  by You to Us in the form attached to this Agreement as Exhibit B.  SECTION 51.“Affiliate” means, with respect to any Person, any Person that owns or controls directly or indirectly  such Person, any Person that controls or is controlled by or is under common control with such Person, and each of  such Person’s senior executive officers, directors, and partners, and members.  SECTION 52.“Agreement” has the meaning given to it in the Preamble.  SECTION 53.“Availability Period” has the meaning set forth in the Table of Terms.  “Business Day” means any day other than a Saturday, Sunday or other day on which banking institutions in the  State of California are authorized or required by law or other government action to close.                                                                                    28 

 

SECTION 54.“Cash” means all cash, money, currency, and liquid funds, wherever held, which any of You own now,  hold or acquire any right, title, or interest in.  SECTION 55.“Chattel  Paper” means  any  “chattel  paper,”  as  such  term  is  defined  in  the  UCC,  now  owned  or  acquired by any of You or in which any of You now hold or acquire any interest.  SECTION 56.“Closing Date” means March 1, 2019.  SECTION 57.“Collateral” has the meaning given to it in Section 8.  SECTION 58.“Collateral Agency Agreement” means that Collateral Agency Agreement entered into among Us as  of the Closing Date, as the same may be amended, restated, supplemented or otherwise modified from time to time.  SECTION 59.“Collateral Agent” has the meaning given to it in the preamble.  SECTION 60.“Commitment Amount” has the meaning set forth in the Table of Terms.  SECTION 61.“Commitment  Date” means  the  date  on  which  the  Part  1  Milestone  is  satisfied  and  the  Part  1  Commitment Amount is available for borrowing.  SECTION 62.“Commitment Increase Request Notice” has the meaning given to it in Section 3.  SECTION 63.“Copyright  License” means  any  written  agreement  granting  to  any  of  You  any  right  to  use  any  Copyright or Copyright registration in which agreement You now hold or hereafter acquire any interest.  SECTION 64.“Copyrights” means all of the following now owned or acquired by any of You or in which any of  You now hold or acquire any interest: (i) all copyrights and copyright rights, whether registered or unregistered, held  pursuant to the laws of the United States, any State thereof, or of any other country, or pursuant to any convention or  treaty; (ii) all registrations of, applications for registration and recordings of any copyright rights in the United States  Copyright Office or in any similar office or agency of the United States, any State thereof or any other country; (iii)  all  continuations,  renewals  or  extensions  of  any  copyrights  and  any  registrations  thereof;  and  (iv)  any  copyright  registrations to be issued under any pending applications.  SECTION 65.“Default” means any event that, with the passage of time or notice or both would, unless cured or  waived, become an Event of Default.  SECTION 66.“Default Rate” has the meaning given to it in Section 7.  SECTION 67.“Deposit Accounts” means any “deposit accounts,” as such term is defined in the UCC, now owned  or acquired by any of You or in which any of You now hold or acquire any interest.  SECTION 68.“Disqualified Stock” means any capital stock or other equity interest that, by its terms (or by the terms  of any security into which it is convertible, or for which it is exchangeable, in each case at the option of the holder  thereof),  or  upon  the  happening  of  any  event,  matures  or  is  mandatorily  redeemable,  pursuant  to  a  sinking  fund  obligation or otherwise, or redeemable at the option of the holder thereof, in whole or in part, on or prior to the date  that is ninety-one (91) days after the latest date on which any portion of the Secured Obligations mature; provided,  however,  that  (i)  only  the  portion  of  such  equity  interests  which  so  matures  or  is  mandatorily  redeemable,  is  so  convertible or exchangeable or is so redeemable at the option of the holder thereof prior to such date shall be deemed  to be Disqualified Stock and (ii) with respect to any equity interests issued to any employee or to any plan for the  benefit of employees of the Lead Borrower or its Subsidiaries or by any such plan to such employees, such equity  interest  shall  not  constitute  Disqualified  Stock  solely  because  it  may  be  required  to  be  repurchased  by  the  Lead  Borrower or one of its Subsidiaries in order to satisfy applicable statutory or regulatory obligations or as a result of  such employee’s termination, resignation, death or disability and if any class of equity interest of such Person that by  its  terms  authorizes  such  Person  to  satisfy  its  obligations  thereunder  by  delivery  of  an  equity  interest  that  is  not  Disqualified Stock, such equity interests shall not be deemed to be Disqualified Stock. Notwithstanding the preceding  sentence, any equity interest that would constitute Disqualified Stock solely because the holders thereof have the right  to require any of You to repurchase such equity interest upon the occurrence of a change of control or an asset sale  shall not constitute Disqualified Stock.  The amount of Disqualified Stock deemed to be outstanding at any time for  purposes of this  Agreement  will  be  the  maximum amount that any of  You and your  respective  Subsidiaries  may  become obligated to pay upon maturity of, or pursuant to any mandatory redemption provisions of, such Disqualified  Stock or portion thereof, plus accrued dividends.  SECTION 69.“Documents” means any “documents,” as such term is defined in the UCC, now owned or acquired  by any of You or in which any of You now hold or acquire any interest.  SECTION 70.“Domestic Subsidiary” means a Subsidiary organized under the laws of the United States or any state  or commonwealth thereof or the District of Columbia other than any Subsidiary of a Foreign Subsidiary.                                                                                    29 

 

SECTION 71.“End of Term Payment” has the meaning set forth in the Table of Terms.  SECTION 72.“English  Share  Charge” means  the  share  charge  granted  by  Casper  Sleep,  Inc  in  favour  of  the  Collateral Agent in respect of the shares in the English Subsidiary.  SECTION 73.“English  Subsidiary” means  Casper  Sleep  Limited,  a  company  incorporated  under  the  laws  of  England and Wales with company number 10049954.  SECTION 74.“Equipment” means any "equipment," as such term is defined in the UCC, and any and all additions,  upgrades,  substitutions  and  replacements  thereto  or  thereof,  together  with  all  attachments,  components,  parts,  accessions and accessories installed thereon or affixed thereto, now owned or hereafter acquired by any of You or in  which any of You now hold or acquire any interest.   SECTION 75.“ERISA” means the Employee Retirement Income Security Act of 1974.  SECTION 76.“Event of Default” has the meaning given to it in Section 14.  SECTION 77.“Excluded Accounts” has the meaning given to it in Section 12.  “Excluded Agreements” means (i) the Warrant Agreement; and (ii) any stock purchase agreement, options, or other  warrants to acquire, or agreements governing the rights of, any capital stock or other equity security, or any common  stock, preferred stock, or equity security issued to or purchased by Us or Our nominee or assignee.  SECTION 78.“Facility Fee” has the meaning set forth in the Table of Terms.  SECTION 79.“First Amendment” means the First Amendment to Plain English Growth Capital Loan and Security  Agreement dated as of the First Amendment Closing Date, among each of You and Us.  SECTION 80.“First Amendment Closing Date” means November 10, 2020.  SECTION 81.“Fixtures” means any “fixtures,” as such term is defined in the UCC, together with any of Your right,  title and interest in and to all extensions, improvements, betterments, renewals, substitutes, and replacements thereof,  and all additions and appurtenances thereto any, now owned or hereafter acquired by any of You or in which any of  You now hold or acquire any interest.  SECTION 82.“Foreign  Subsidiary” means  any  Subsidiary  that  is  not  a  Domestic  Subsidiary  and  includes  any  Subsidiary (whether or not a Domestic Subsidiary) of a Foreign Subsidiary.  SECTION 83.“GAAP” means generally accepted accounting principles, consistently applied, as in effect from time  to time.  SECTION 84.“General Intangibles” means any “general intangibles,” as such term is defined in the UCC, and, in  any event, includes proprietary or confidential information (other than Intellectual Property); business records and  materials  (other  than  Intellectual  Property);  customer  lists;  interests  in  partnerships,  joint  ventures,  corporations,  limited liability companies and other business associations; permits; claims in or under insurance policies (including  unearned premiums and retrospective premium adjustments); and rights to receive tax refunds and other payments  and rights of indemnification, now owned or acquired by any of You or in which any of You may now or hereafter  have any interest.  SECTION 85.“Goods” means any “goods,” as such term is defined in the UCC, now owned or hereafter acquired by  any of You or in which any of You now hold or acquire any interest.  SECTION 86.“Guarantor” means any Person who from time to time may guaranty or provide collateral or other  credit support for all or any portion of the Secured Obligations.  SECTION 87.“Indebtedness” means, of any Person, at any date, without duplication and without regard to whether  matured or unmatured, absolute or contingent:  (i) all obligations of such Person for borrowed money; (ii) all obligations  of such Person evidenced by bonds, debentures, notes, or other similar instruments; (iii) all obligations of such Person to  pay the deferred purchase price of property or services; (iv) all obligations of such Person as lessee under capital leases;  (v) all obligations of such Person to reimburse or prepay any bank or other Person in respect of amounts paid under a  letter of credit, banker's acceptance, or similar instrument, whether drawn or undrawn; (vi) all obligations of such Person  to purchase securities which arise out of or in connection with the sale of the same or substantially similar securities; (vii)  all obligations of such Person to purchase, redeem, exchange, convert or otherwise acquire for value any capital stock of  such Person or any warrants, rights or options to acquire such capital stock, now or hereafter outstanding, except to the  extent that (A) such obligations remain performable solely at the option of such Person or (B) any such exchange or  conversion is made solely for such capital stock; (viii) all obligations to repurchase assets previously sold (including any  obligation to repurchase any accounts or chattel paper under any factoring, receivables purchase, or similar arrangement);                                                                                    30 

 

(ix)  obligations  of  such  Person  under  interest  rate  swap,  cap,  collar  or  similar  hedging  arrangements;  and  (x) all  obligations of others of any type described in clause (i) through clause (ix) above guaranteed by such Person.  SECTION 88.“Indemnitee” has the meaning given to it in Section 13.  SECTION 89.“Insolvency Proceeding” means any proceeding in respect of bankruptcy, insolvency, winding up,  receivership, dissolution or assignment for the benefit of creditors, in each of the foregoing events whether under the  United  States  Bankruptcy  Code  or  any  similar  federal,  state  or  foreign  bankruptcy,  insolvency,  reorganization,  receivership or similar law.  SECTION 90.“Instruments” means any “instrument,” as such term is defined in the UCC, now owned or hereafter  acquired by any of You or in which any of You now hold or acquire any interest.  SECTION 91.“Intellectual Property” means  all  Copyrights;  Trademarks;  Patents;  Licenses;  source  codes;  trade  secrets;  inventions (whether or not patented or patentable); technical information, processes, designs, knowledge and  know-how;  data  bases;  models;  drawings;  websites,  domain  names, and  URL’s, and all applications therefor  and  reissues, extensions, or renewals thereof; together with the rights to sue for past, present, or future infringement of  Intellectual Property and the goodwill associated with the foregoing.  SECTION 92.“Inventory” means any “inventory,” as such term is defined in the UCC, now owned or acquired by  any of You or in which any of You now hold or acquire any interest, and, in any event, shall include, without limitation,  all Goods and personal property that are held by or on any of Your behalf for sale or lease or are furnished or are to  be furnished under a contract of service or that constitute raw materials, work in process or materials used or consumed  or to be used or consumed in any of Your businesses, or the processing, packaging, promotion, delivery or shipping  of the same, and all finished goods, whether or not the same is in transit or in any of Your constructive, actual or  exclusive possession or is held by others for any of Your account, including, without limitation, all property covered  by purchase orders and contracts with suppliers and all goods billed and held by suppliers and all such property that  may be in the possession or custody of any carriers, forwarding agents, truckers, warehousemen, vendors, selling  agents or other Persons.  SECTION 93.“Investment” means  any  beneficial  ownership  (including  stock,  partnership  or  limited  liability  company interest or other securities) of any Person, or any loan, advance or capital contribution to any Person.  SECTION 94.“Investment Property” means any “investment property,” as such term is defined in the UCC, and  includes  any  certificated  security,  uncertificated  security,  money  market  funds,  bonds,  mutual  funds,  and  U.S.  Treasury bills and notes now owned or hereafter acquired by any of You or in which any of You now hold or acquire  any interest.  SECTION 95.“IRC” means the Internal Revenue Code of 1986, as amended, and the regulations thereunder.  SECTION 96.“Joinder Agreement” means a joinder agreement in substantially the form attached as Exhibit E.  SECTION 97.“Lead Borrower” means Casper Sleep Inc., a Delaware corporation.  SECTION 98.“Letter of Credit Rights” means any “letter of credit rights,” as such term is defined in the UCC, now  owned or acquired by any of You or in which any of You now hold or acquire any interest, including any right to  payment under any letter of credit.  SECTION 99.“License” means any Copyright License, Patent License, Trademark License or other license of rights  or interests now held or acquired by any of You or in which any of You now hold or acquire any interest and any  renewals or extensions thereof.  SECTION 100.“Lien” means any mortgage, deed of trust, pledge, hypothecation, assignment for security, security  interest, encumbrance, levy, lien or charge of any kind, whether voluntarily incurred or arising by operation of law or  otherwise, against any property, any conditional sale or other title retention agreement, any lease in the nature of a  security interest, and the filing of any financing statement (other than a precautionary financing statement with respect  to a lease that is not in the nature of a security interest) under the UCC or comparable law of any jurisdiction.  “Loan  Documents” means this  Agreement, the  Promissory  Notes, all  UCC  Financing  Statements, the  Collateral  Agency  Agreement  and  applications  for  registration  in  connection  with  the  Collateral,  and  any  other  documents  executed  in  connection  with  the  Secured  Obligations  or  the  transactions  contemplated  hereby,  including  those  documents described on the Schedule of Documents attached hereto as Schedule 2, as the same may from time to time  be amended, modified, supplemented or restated; provided, that the Loan Documents shall not include any of the  Excluded Agreements.  SECTION 101.“Loan Term” has the meaning set forth in the Table of Terms.                                                                                    31 

 

“Material  Adverse  Effect” means  a material  adverse  effect  on  (i)  the  business,  operations,  properties,  assets  or  financial condition of any of You or all of You as a whole, (ii) the ability of any of You to perform the Secured  Obligations in accordance with the terms of the Loan Documents or Our ability to enforce any of Our rights and  remedies with respect to the Secured Obligations in accordance with the terms of the Loan Documents, or (iii) the  Collateral or Collateral Agent’s Liens on the Collateral or the priority of such Liens.  “Material Foreign Subsidiary” means any Foreign Subsidiary with (a) total assets that represent more than  20% of Your consolidated total assets or (b) gross revenues that represent more than 20% of Your consolidated  gross revenues during any fiscal year.  “Merger Event” means  (i)  any  reorganization,  consolidation  or  merger  (or  similar  transaction  or  series  of  transactions) by any of  You or any of Your subsidiaries, with or into any other Person; (ii) any transaction, including  the sale or exchange of outstanding shares of Your capital stock, or the capital stock of any of Your Subsidiaries, in  which the holders of such outstanding capital stock of the affected corporation immediately before consummation of  such transaction or series of related transactions do not, immediately after consummation of such transaction or series  of related transactions, retain capital stock representing at least 50.0% of the voting power of the surviving corporation  of such transaction or series of related transactions (or the parent corporation of such surviving corporation if such  surviving corporation is wholly owned by such parent corporation), in each case without regard to whether You or  any  of  Your  subsidiaries  are  the  surviving  corporation,  or  (iii)  the  sale,  license  or  other  disposition  of  all  or  substantially all of Your assets, or the assets of any of Your subsidiaries.  “OFAC” means the United States Department of the Treasury’s Office of Foreign Assets Control.  “Paid in Full” means, with respect to the Secured Obligations, that: (a) all of such Secured Obligations (other than  (i) contingent indemnification or reimbursement obligations not yet due and payable, or (ii) other obligations which,  by their terms, survive termination of the documents relating to such Secured Obligations) have been paid, performed  or discharged in full (with all such Secured Obligations consisting of monetary or payment obligations having been  paid in full in cash or cash equivalents), regardless of whether any such amounts are allowed or allowable in any  Insolvency Proceeding, and (b) no Person has any further right to obtain any Advances or other extensions of credit  hereunder.  “Payment in Full” and words of like import shall have a correlative meaning.  “Part 1 Milestone” means that You have issued and sold additional shares of Your preferred stock since February 1,  2019, for aggregate gross cash proceeds of at least $25,000,000 (excluding any amounts received upon conversion or  cancellation of indebtedness).  SECTION 102.“Part Exposure” means, as of any time of determination with respect to any Lender with respect to  any Part, the sum of (a) the unfunded Commitment Amount of such Lender with respect to such Part and (b) the  aggregate amount of such Lender’s portion of the aggregate outstanding principal amount of Advances under such  Part.  SECTION 103.“Parts” has the meaning given to it in Section 3.  SECTION 104.“Patent  License” means  any  written  agreement  granting  to  You  any  right  with  respect  to  any  invention or Patent in which You now hold or acquire any interest.  “Patents” means all of the following now owned or acquired by any of You or in which any of You now hold or  acquire any interest: (a) all patents, or rights corresponding thereto, issued or registered in the United States or any  other country,  (b) all applications for patents, or rights corresponding thereto in, the United States or any other country;  (c) all reissues, reexaminations, continuations, divisions, continuations-in-part, or extensions of the foregoing patents  and/or applications; (d) all patents to be issued under any of the foregoing applications; and (e) all foreign counterparts  of the foregoing patents and/or applications.  “Patriot Act” means the USA PATRIOT Improvement and Reauthorization Act of 2005.  “Permitted Acquisition” means an Acquisition in which all of the following conditions are satisfied: (a) You have  obtained Our written consent to such Acquisition, which is subject to Our sole discretion, (b) no Default or Event of  Default then exists or would arise from the consummation of such Acquisition, (c) such Acquisition shall have been  approved by the board of directors of the Person (or similar governing body if such Person is not a corporation) which  is the subject of such Acquisition and such Person shall not have announced that it will oppose such Acquisition or  shall  not  have commenced any  action  which  alleges that  such  Acquisition  shall  violate  applicable  law,  (d) if the  aggregate cash consideration for such Acquisition exceeds an amount equal to $5,000,000, You shall have furnished  Us with fifteen (15) days’ prior written notice of such intended Acquisition (or such shorter period as the Collateral  Agent may agree) and shall have furnished Us with a current draft of the acquisition documents (and final copies  thereof as and when executed), and to the extent readily available to any of You, (i) a summary of any due diligence  undertaken by You in connection with such Acquisition, (ii) applicable financial statements of the Person which is the                                                                                   32 

 

subject of such Acquisition (if any), (iii) pro forma projected financial statements for the twelve (12) month period  following such Acquisition after giving effect to such Acquisition (including balance sheets, cash flows and income  statements by month for the acquired Person, individually, and on a consolidated basis with all of You) (if any), and  (iv) such other information as We may reasonably require, all of which shall be satisfactory to Us in our sole discretion,  (e) with respect to an Acquisition of the capital stock or other equity interests, the legal structure of the Acquisition  shall be acceptable to the Agent in its sole discretion, (f) after giving effect to the Acquisition, if the Acquisition is an  Acquisition of the capital stock or other equity interests, any of You shall acquire and own, directly or indirectly, a  majority of the capital stock or other equity interests in the Person being acquired and shall control a majority of any  voting interests or shall otherwise control the governance, directly or indirectly, of the Person being acquired, (g) any  assets acquired shall be utilized in, and if the Acquisition involves a merger, consolidation or Acquisition of capital  stock or other equity interests, the Person which is the subject of such Acquisition shall be engaged in, a business  otherwise permitted to be engaged in by You or Your Subsidiaries under this Agreement, and (h) if the Person which  is the subject of such Acquisition will be maintained as a Subsidiary of any of You (other than a Foreign Subsidiary),  such Subsidiary shall be joined as a borrower hereunder or shall execute a Guaranty, as We shall determine, and the  Collateral Agent shall receive a security interest in such Subsidiaries Collateral (subject in priority only to Liens in  favor  of  the  Senior  Agent  or  Permitted  Encumbrances  having  priority  over  the  Lien  of  the  Collateral  Agent  by  operation of applicable Law).  “Permitted Convertible Indebtedness” means any notes, bonds, debentures or similar instruments issued by Lead  Borrower that are convertible into or exchangeable for (x) cash, (y) shares of the Lead Borrower’s common stock or  preferred stock or other equity securities that constitute equity interests of Lead Borrower (other than Disqualified  Stock) and/or (z) a combination thereof; provided that any such Indebtedness shall (A) mature, and not be subject to  mandatory or optional repurchase, repayment or redemption of any portion of principal thereof prior to at least 180  days after the latest “Maturity Date” of any Promissory Note, (B) have recourse only to the Lead Borrower, (C) have  an interest rate that shall not exceed the then applicable market interest rate as determined by the Lead Borrower in  good faith, and (D) shall be unsecured obligations.  “Permitted Indebtedness” means (a) Indebtedness of any of You in favor of Us; (b) Indebtedness existing at the  Closing  Date  and  disclosed  on Schedule  1;  (c)  Indebtedness  incurred  for  the  acquisition  of  services,  supplies  or  inventory on normal trade credit in the ordinary course of business; (d) subject to the Working Capital Intercreditor  Agreement, the Square One Facility in amount not to exceed the Senior Debt Cap (as defined in the Working Capital  Intercreditor Agreement) or if the Square One Facility is replaced, Indebtedness under the Working Capital Loan  Facility so long as the aggregate outstanding amount thereof (including advances, bank services, letters of credit,  contingent obligations and the like) does not at any time exceed Twenty-Five Million Dollars ($25,000,000) in the  aggregate of which advances other than bank services (which bank services shall include corporate credit cards, letters  of credit and contingent obligations); (e) [reserved]Senior Indebtedness, so long as such Indebtedness does not exceed  an aggregate principal amount of Thirty Million Dollars ($30,000,000) (the “Senior Debt Cap”) and is, at all times,  subject to the Senior Intercreditor Agreement; provided that You may increase the Senior Debt Cap by Fifteen Million  Dollars ($15,000,000) to a total aggregate principal amount not to exceed Forty Five Million Dollars ($45,000,000)  so long as immediately prior to such increase either (i) (x) no Event of Default is continuing, and (y) You prepay the  Secured  Obligations  in  a  principal  amount equal  to  Seven Million  Five  Hundred Thousand Dollars  ($7,500,000),  together with accrued interest thereon, and such prepayment is permitted pursuant to the Senior Credit Agreement, or  (ii) You receive Our written consent to such increase; (e) Permitted Convertible Indebtedness in an amount not to  exceed One Hundred Million Dollars ($100,000,000), so long as prior to the incurrence of any portion thereof, (i) no  Event of Default is continuing and (ii) You prepay the Secured Obligations in a principal amount equal to the greater  of  (A)  Seven  Million  Five  Hundred  Thousand  Dollars  ($7,500,000)  and  (B)  an  amount  sufficient  to  reduce  the  outstanding principal amount of the Secured Obligations to Thirty Million Dollars ($30,000,000), in each case together  with accrued interest thereon, and such prepayment is permitted pursuant to the terms of the Senior Credit Agreement;  (f) Subordinated Indebtedness, (g) Indebtedness consisting of interest rate, currency, or commodity swap agreements,  interest rate cap or collar agreements entered into in the ordinary course of business (but not for speculative purposes)  and designated to protect a Person against fluctuations in interest rates, currency exchange rates or commodity prices;  (h) other unsecured Indebtedness in an aggregate amount not to exceed $500,0002,500,000 at any time, provided that  both at  the time of and immediately  after  giving  effect to the incurrence thereof,  no  Event  of  Default  shall  have  occurred and be continuing or result therefrom; (i) reimbursement obligations under corporate credit cards incurred in  the ordinary course of business in an aggregate amount outstanding not to exceed $3,500,000 at any given time; (j)  Indebtedness under (1)any letters of credit backstopped by a letter of credit or similar undertaking issued under the  Working  Capital  Facility,  or  which  otherwise  reduce  the  amount  available  under  the  Working  Capital  Facility’s  Ancillary Services Sublimit (as defined in the Working Capital Facility) and (2) any other letters of credit (other than  those  issued  under  the Working  CapitalSenior Credit Facility),  provided  that  the  aggregate amountsamount  of  Indebtedness under this clause (2j) shall not exceed (i) $5,000,000 at any time outstanding; (k)10,800,000 from the  First  Amendment Closing Date  until  the  date  that  is  180  days  after  the  First Amendment Closing Date,  and  (ii)                                                                                   33 

 

$1,500,000 thereafter (provided that letters of credit not in existence as of the First Amendment Closing Date shall  not be permitted under this clause (j)(ii) unless such letters of credit cannot be issued or the letter of credit issuer  refuses to issue such letter of credit pursuant to the terms of the Senior Credit Agreement), provided that to the extent  You use commercially reasonable efforts to terminate, cancel or cause the PacWest Cash Collateralized Letters of  Credit (as defined in the Senior Credit Agreement in effect as of the First Amendment Closing Date) to be reissued  under the Senior Credit Agreement and are unable to do so within 180 days of the First Amendment Closing Date, the  limit  under  this  clause  (j)(ii) shall  be  increased  to  $4,500,000  (provided  that  not  more  than  $1,500,000  of  such  Indebtedness  shall  consist  of  letters  of  credit  not  in  existence  as  of  the  First  Amendment Closing Date);  (k)  Indebtedness  with  respect  to  the  deferred  purchase  price  for  any Permitted  Acquisition,  provided  that  such  Indebtedness (other than, for the avoidance of doubt, in respect of working capital adjustments, milestones or earnouts)  does not require the payment in cash of scheduled principal  prior to the latest “Maturity Date” of any Promissory  Note, has a maturity which extends beyond the latest “Maturity Date” of any Promissory Note, and is subordinated to  the  Secured  Obligations  on  terms  reasonably  acceptable  to  Us,  (l) extensions,  refinancings,  modifications,  amendments and restatements of any item of Permitted Indebtedness (a) though (k) above, provided that the principal  amount thereof is not increased; (lm) Indebtedness consisting of intercompany journal entries made in connection  with cost sharing or transfer pricing transactions, provided that all such transactions are cashless; (n) Bank Product  Obligations and Cash Management Obligations (each as defined in the Senior Intercreditor Agreement) in an aggregate  principal amount not to exceed Three Million Dollars ($3,000,000) at any time; and (mo) Indebtedness that constitutes  a Permitted Investment.  SECTION 105.“Permitted  Investment” means  (a)  Investments  that  are  in  existence  on  the  Closing  Date  and  disclosed  on Schedule  1;  (b)  Investments  in (i) domestic  certificates  of  deposit issued  by,  and  other  domestic  investments with, financial institutions organized under the laws of the United States or a state thereof, having at least  One Hundred Million Dollars ($100,000,000) in capital and a rating of at least “investment grade” or “A” by Moody's  or any successor rating agency or (ii) any “cash equivalents” disclosed on the balance sheet of Lead Borrower filed  with the U.S. Securities and Exchange Commission; (c) Investments in marketable obligations of the United States of  America and in open market commercial paper given the highest credit rating by a national credit agency and maturing  not more than one year from the creation thereof; (d) so long as no Event of Default has occurred and is continuing,  temporary advances to employees to cover incidental expenses to be incurred in the ordinary course of business, in an  aggregate outstanding amount not to exceed $50,000500,000 at any time; (e) Investments (including debt obligations)  received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement of delinquent  obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business; (f) Investments  made by any of You in or to any Subsidiary, provided that Investments in or to any Subsidiary that is not a Borrower or  a Guarantor shall be limited to (1) Investments described on Schedule 1 or (2) made after the Closing Date in an aggregate  amount pursuant to this clause (2) not to exceed $6,000,000 during any fiscal year; provided, further that:  (A) in the case  of any Investment made in the form of a loan or advance to a Subsidiary other than You, such Subsidiary shall have  executed and delivered to You, prior to any such loan or advance being made, a demand note (each, an “Intercompany  Note”)  to  evidence  any  such  intercompany  indebtedness  owing  at  any  time  by  such  Subsidiary  to  You,  which  Intercompany Note shall be in form and substance reasonably satisfactory to Us and shall be pledged and delivered to  Us  as  additional  Collateral  for  the  Secured  Obligations;  (B)  each  of  You  and  such  Subsidiary  shall  record  all  intercompany transactions on its books and records in a manner reasonably satisfactory to Us; (C) in the case of such  Investments  that  consist  of a  intercompany  loan  or  advance  made  by  You  to  such  Subsidiary,  at  the  time  of  such  Investment and after giving effect thereto, each of You and such Subsidiary shall be Solvent; and (D) no Event of Default  would occur and be continuing after giving effect to any such proposed intercompany Investment that consists of a loan  or advance; (g) Investments constituting Permitted Acquisitions (h) other Investments in an aggregate amount not to  exceed  $1,000,0002,500,000 in  any  fiscal  year;  and  (hi)  Investments  corresponding  to  amounts  in  item  (h)  of  the  definition of Permitted Indebtedness, consisting of intercompany journal entries made in connection with cost sharing or  transfer pricing transactions, provided that all such transactions are cashless.  SECTION 106.“Permitted  Liens” means  any  and  all  of  the  following:  (i) Liens  in  favor  of  Collateral  Agent;  (ii) Liens for taxes, fees, assessments or other governmental charges or levies, either not delinquent or being contested  in good  faith  by appropriate proceedings, provided that  such  Liens  do  not  have  priority  over any  of  the  Liens  of  Collateral  Agent  and  You  maintain  adequate  reserves  in  accordance  with  GAAP;  (iii) Liens  securing  claims  or  demands of materialmen, artisans, mechanics, carriers, warehousemen, landlords and other like Persons arising in the  ordinary course of Your business and imposed without action of such parties, provided that the payment thereof is not  yet required and that such Liens do not have priority over any of the Liens of Collateral Agent; (iv) Liens arising from  judgments, decrees or attachments in circumstances which do not constitute an Event of Default hereunder; (v) the  following deposits, to the extent made in the ordinary course of Your business:  deposits under worker's compensation,  unemployment insurance,  social  security  and other  similar laws,  or  to  secure  the  performance of  bids,  tenders  or  contracts (other than for the repayment of borrowed money) or to secure indemnity, performance or other similar  bonds for the performance of bids, tenders or contracts (other than for the repayment of borrowed money) or to secure                                                                                   34 

 

statutory obligations (other than Liens arising under ERISA or environmental Liens) or surety or appeal bonds, or to  secure  indemnity,  performance  or  other  similar  bonds;  (vi)  Liens on  insurance  proceeds  in  favor  of  insurance  companies granted solely as security for financed premiums; (vii) [reserved]; (viii) Liens in favor of the Working  Capital LenderSenior Agent arising under the Working CapitalSenior Loan FacilityDocuments, subject to the Working  CapitalSenior Intercreditor Agreement; (ix) Liens in favor of customs and revenue authorities arising as a matter of  law to secure payments of custom duties in connection with the importation of goods; (x) Liens in favor of financial  institutions arising in connection with deposit or securities accounts held at such financial institutions, provided that  such Liens only secure fees and service charges and customary chargebacks or reversals of credits associated with  such accounts; (xi) Liens existing on the Closing Date and disclosed on Schedule 1; (xii) Liens incurred in connection  with the extension, renewal or refinancing of the Indebtedness secured by Liens of the type described in clauses (i),  (vi), (vii) and (viii) above, provided that any extension, renewal or replacement Lien shall be limited to the property  encumbered by the existing Lien and the principal amount of the Indebtedness being extended, renewed or refinanced  (as may have been reduced by any payment thereon) does not increase; (xiii) Lien securing Indebtedness permitted  pursuant to clauses (i) (in an amount not to exceed $1,500,000 for such Indebtedness described in clause (i) of the  definition of Permitted Indebtedness) and (j) of the definition of Permitted Indebtedness so long as such Liens are  limited  to  Cash  collateral  accounts  in  amounts equal  to  or  less no  greater than 105%   of the  amount  of  such  Indebtedness  (provided  You  will  use  commercially  reasonable  efforts  to  provide  a  subordinated  account  control  agreement with regard to the Cash collateral accounts (which shall not apply to your American Express credit cards  or the cash collateral accounts described in clauses (j)(2) or (j)(3) of the definition of Permitted Indebtedness)); (xiv)  non-exclusive licenses or non-perpetual exclusive licenses of Intellectual Property granted to third parties with respect  to geographic area, fields of use and customized products for specific customers that would not result in a transfer of  title of the licensed property under applicable law, all given in the ordinary course of Your business; and  (xv) other  Liens which do not secure Indebtedness for borrowed money and as to which the aggregate amount of the obligations  secured thereby does not exceed $1,000,000; and  (xvi) Liens in favor of custom and revenue authorities arising as a  matter of law to secure the payment of custom duties in connection with the importation of good.  SECTION 107.“Person” means any individual, sole proprietorship, partnership, joint venture, trust, unincorporated  organization, association, corporation, limited liability company, institution, public benefit corporation, other entity  or  government  (whether  federal,  state,  county,  city,  municipal,  local,  foreign,  or  otherwise,  including  any  instrumentality, division, agency, body or department thereof).  SECTION 108.“Prepayment Fee” has the meaning given to it in Section 9.  SECTION 109.“Pro Rata Share” means, as of any date of determination with respect to a Lender’s obligation to  make all or a portion of any Advance under any Part or such Lender’s right to receive payments of interest, fees, and  principal with respect to such Part or Advances under such Part and with respect to all other computations and other  matters related to such Part or Advances thereunder, the percentage obtained by dividing (a) the Part Exposure of such  Lender with respect to such Part by (b) the aggregate Part Exposure of all Lenders with respect to such Part.  SECTION 110.“Proceeds” means “proceeds,” as such term is defined in the UCC and, in any event, shall include,  without limitation, (a) any and all Accounts, Chattel Paper, Instruments, Cash or other proceeds payable to any of You  from  time to time  in  respect  of  the  Collateral,  (b)  any and  all  proceeds  of any  insurance, indemnity,  warranty  or  guaranty payable to any of You from time to time with respect to any of the Collateral, (c) any and all payments (in  any form whatsoever) made or due and payable to any of You from time to time in connection with any requisition,  confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental authority (or  any Person acting under color of governmental authority), (d) the proceeds, damages, or recovery based on any claim  of any of You against third parties (i) for past, present or future infringement of any Copyright, Copyright License,  Patent or Patent License, or (ii) for past, present or future infringement or dilution of any Trademark or Trademark  License or for injury to the goodwill associated with any Trademark, Trademark registration or Trademark licensed  under any Trademark  License;  and  (e)  any  and  all other amounts  from  time  to  time  paid  or  payable under  or in  connection with any of the Collateral.  SECTION 111.“Promissory Note” has the meaning given to it in Section 2.  “PT” means Pacific Time.  SECTION 112.“Receivables” means (i) all of any of the Accounts, Instruments, Documents, Cash, Chattel Paper,  Supporting Obligations, letters of credit, proceeds of a letter of credit, and Letter of Credit Rights of any of You, and  (ii) all customer lists, software, and related business records.  “Secured Obligations” means Your joint and several obligations to repay to Us all Advances (whether or not evidenced  by any  Promissory  Note), together  with all  principal, interest,  fees, costs,  professional  fees and expenses, and  other  liabilities  or  obligations  for  monetary  amounts  owed  by  any  of  You  to  Us,  including  the  indemnity  and  insurance                                                                                    35 

 

obligations in Sections 10, 13 and 20 hereof and including such amounts as may accrue or be incurred before or after  default or workout or the commencement of any liquidation, dissolution, bankruptcy, receivership or reorganization by  or against any of You, whether due or to become due, matured or unmatured, liquidated or unliquidated, contingent or  non-contingent, and all covenants and duties of any kind or nature, present or future, arising under this Agreement, the  Promissory Notes, or any of the other Loan Documents, as the same may from time to time be amended, modified,  supplemented  or  restated,  whether  or  not  such  obligations  are  partially  or  fully  secured  by  the  value  of  Collateral;  provided, that the Secured Obligations shall not include any of the Indebtedness or obligations of any of You arising  under or in connection with the Excluded Agreements.  “Senior Agent” means Wells Fargo Bank, National Association, as administrative agent for the lenders party to the  Senior Credit Agreement, and its successors and assigns.  “Senior Credit Agreement” means the Credit Agreement dated as of the First Amendment Closing Date, among  You, the Senior Agent, and the lenders party thereto from time to time, the other Persons party thereto from time to  time, as the same may be amended, restated, supplemented or otherwise modified from time to time as permitted under  the Senior Intercreditor Agreement.  “Senior Debt Cap” has the meaning given to it in clause (d) of the definition of “Permitted Indebtedness.”  “Senior  Indebtedness”  means  all  of  Your  Indebtedness  and  other  obligations  arising  under  the  Senior  Loan  Documents.  SECTION 113.“Senior  Intercreditor  Agreement” means  the  Subordination  Agreement  dated  as  of  the First  Amendment Closing Date, between the Collateral Agent and Senior Agent, and acknowledged and agreed to by the  Borrowers, as amended restated, supplemented or otherwise modified from time to time by the parties thereto.  SECTION 114.“Senior Loan Documents” means the Senior Credit Agreement and all other Loan Documents (as  defined in the Senior Credit Agreement).  SECTION 115.“Solvent” means, with respect to any Person on a particular date, that on such date (a) the fair value  of the property of such Person is greater than the total amount of liabilities, including contingent liabilities, of such  Person; (b) the present fair salable value of the assets of such Person is not less than the amount that will be required  to pay the probable liability of such Person on its debts as they become absolute and matured; (c) such Person does  not intend to, and does not believe that it will, incur debts or liabilities beyond such Person’s ability to pay as such  debts and liabilities mature; and (d) such Person is not engaged in a business or transaction, and is not about to engage  in a business or transaction, for which such Person’s property would constitute an unreasonably small capital.  The  amount  of  contingent  liabilities  (such  as  litigation,  guaranties  and  pension  plan  liabilities)  at  any time  shall  be  computed as the amount that, in light of all the facts and circumstances existing at the time, represents the amount that  can be reasonably be expected to become an actual or matured liability.  “Square One Facility” means that certain Loan and Security Agreement, dated as of April 27, 2016, by and between  You and Pacific Western Bank, a California state chartered bank, together with its successors and assigns (“Pacific  Western Bank”), as amended by that certain First Amendment to Loan and Security Agreement, dated as of November  20, 2017, that certain Second Amendment to Loan and Security Agreement, dated as of August 14, 2018, that certain  Third  Amendment  to  Loan  and  Security  Agreement,  dated  as  of  December  12,  2018,  and  that  certain  Fourth  Amendment and Joinder to Loan and Security Agreement, dated as of the Closing Date, as the same may be further  amended, amended and restated or otherwise modified from time to time.   SECTION 116.“Subordinated Indebtedness” means Indebtedness (i) approved by Us and (ii) subordinated to the  Secured Obligations on terms and conditions reasonably acceptable to Us, including without limiting the generality  of the foregoing, subordination of such Indebtedness in right of payment to the prior payment in full of the Secured  Obligations, the subordination of the priority of any Lien at any time securing such Indebtedness to Collateral Agent’s  Liens in Your assets and properties, and the subordination of the rights of the holder of such Indebtedness to enforce  its junior Lien following an Event of Default hereunder pursuant to a written subordination agreement approved by  Us.  SECTION 117.“Subsidiary” means, with respect to any Person, any Person of which more than 50% of the voting  stock or other equity interests is owned or controlled, directly or indirectly, by such Person.  SECTION 118.“Supporting Obligations” means any “supporting obligations,” as such term is defined in the UCC,  now owned or acquired by any of You or in which any of You now hold or hereafter acquire any interest.  SECTION 119.“Table of Terms” means the table of terms on Pages 1 through 6 of this Agreement.  SECTION 120.“TPC” means TriplePoint Capital LLC, a Delaware limited liability company.                                                                                    36 

 

SECTION 121.“TPVG” means TriplePoint Venture Growth BDC Corp., a Maryland corporation.  SECTION 122.“Trademark License” means any written agreement granting to You any right to use any Trademark  or  Trademark  registration now  owned  or  hereafter acquired  by  any  of  You  or in  which any  of  You  now  hold  or  hereafter acquire any interest.   SECTION 123.“Trademarks” means all of the following property now owned or hereafter acquired by any of You  or in which any of You now hold or hereafter acquire any interest: (a) all trademarks, trade names, corporate names,  business names, trade styles, service marks, logos, other source or business identifiers, prints and labels on which any  of the foregoing have appeared or appear, designs and general intangibles of like nature, now existing or hereafter  adopted or acquired, all registrations and recordings thereof, and any applications in connection therewith, including,  without limitation, registrations, recordings and applications in the United States Patent and Trademark Office or in  any similar office or agency of the United States, any State thereof or any other country or any political subdivision  thereof and (b) reissues, extensions or renewals thereof.  “Trading with the Enemy Act” means the Trading with the Enemy Act of the United States of America (50 U.S.C.  App. §§ 1 et seq.).  SECTION 124.“UCC” means the Uniform Commercial Code as the same is, from time to time, in effect in the State  of California; provided, that in the event that, by reason of mandatory provisions of law, any or all of the attachment,  perfection or priority of, or remedies with respect to, Collateral Agent's Lien on any Collateral is governed by the  Uniform  Commercial  Code  as  the  same  is,  from  time  to  time,  in  effect  in  a  jurisdiction  other  than  the  State  of  California, the term “UCC” shall mean the Uniform Commercial Code as in effect, from time to time, in such other  jurisdiction solely for purposes of the provisions thereof relating to such attachment, perfection, priority or remedies  and  for  purposes of  definitions related  to  such  provisions.   Unless otherwise  defined herein  or in  the  other  Loan  Documents terms that are defined in the UCC and used herein or in the other Loan Documents shall have the meanings  given to them in the UCC.  SECTION 125.“Upon Request and Additional Approval” has the meaning given to it in Section 3.  SECTION 126.“Warrant Agreements” means each of the Warrant Agreements dated the date hereof between You  and each Lender and issued in connection with this Agreement and any other warrant agreement between You and  any Lender issued in connection with this Agreement.  “Working  Capital  Intercreditor  Agreement”  means  (a)  that  certain Subordination  Agreement  dated  as  of  the  Closing Date by and between Us and Pacific Western Bank as the Working Capital Lender or (b) in the event of a  new Working Capital Lender, an intercreditor agreement entered into between Us (or Collateral Agent on behalf of  Us) and the Working Capital Lender on terms acceptable to Us in Our sole discretion.  “Working Capital Lender” means  (a) Pacific Western Bank so long as the Square One Facility is in place or (b) a  commercial bank regularly engaged in the business of lending money (excluding venture capital lenders, non-bank  venture capital lenders, investment banking or similar institutions which sometimes engage in lending activities but  which are primarily engaged in investments in equity securities) party to a Working Capital Intercreditor Agreement.  “Working Capital Loan Facility” means the Square One Facility in amount not to exceed the Senior Debt Cap (as  defined in the Working Capital Intercreditor Agreement) or any replacement formula based revolving line of credit  provided by the Working Capital Lender entered into on or after the Closing Date pursuant to which the Working  Capital Lender makes advances based on the value of Your Accounts in an amount not to exceed $25,000,000 at any  time.  SECTION 127.Unless  otherwise  specified,  all  references  in  this  Agreement  or  any  Annex  or  Schedule  hereto  to  a  “Section,” “subsection,” “Exhibit,” “Annex,” or “Schedule” shall refer to the corresponding Section, subsection, Exhibit,  Annex, or Schedule in or to this Agreement.  The terms "herein," "hereof" and "hereunder" and other words of similar  import refer to this Agreement as a whole, including all Exhibits, Annexes and Schedules, and not to any particular  Section, subsection or other subdivision.  SECTION 128.Wherever from the context it appears appropriate, each term stated in either the singular or plural shall  include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall include the  masculine,  feminine  and  neuter  genders.   The  words  “including,”  “includes”  and  “include”  shall  be  deemed  to  be  followed by the words “without limitation,” the word “or” is not exclusive; references to Persons include their respective  successors and assigns (to the extent and only to the extent permitted by this Agreement and the Loan Documents) or, in  the case of governmental Persons, Persons succeeding to the relevant functions of such Persons; and all references to  statutes and related regulations shall include any amendments of the same and any successor statutes and regulations.   Unless otherwise specifically provided herein, any accounting term used in this Agreement or the other Loan Documents                                                                                    37 

 

shall have the meaning customarily given such term in accordance with GAAP, and all financial computations hereunder  shall be computed in accordance with GAAP, consistently applied.  SECTION 129.  SECTION 130.                               SECTION 131.(Signatures to Follow)                                                                                                                 38 

 

                                     SECTION 133.  IN WITNESS WHEREOF, the Parties have executed and delivered this Agreement as of the day and year first above  written.    BORROWER:                        You:          CASPER SLEEP INC.                                     Signature:                                                                          Print Name:                                                                         Title:                                                                                You:          CASPER RETAIL LLC                                     Signature:                                                                          Print Name:                                                                         Title:                                                                                  You:          CASPER SCIENCE LLC                                     Signature:                                                                          Print Name:                                                                         Title:                                                                                       [SIGNATURE PAGE TO PLAIN ENGLISH GROWTH CAPITAL LOAN AND SECURITY AGREEMENT]                                                                                                                 39 

 

Accepted in Menlo Park, California:    LENDERS:                         TPVG:         TRIPLEPOINT VENTURE GROWTH                                                  BDC CORP.                                     Signature:                                                                          Print Name:                                                                         Title:                                                                                TPC:          TRIPLEPOINT CAPITAL LLC                                     Signature:                                                                          Print Name:                                                                         Title:                                               COLLATERAL AGENT:                              TRIPLEPOINT VENTURE GROWTH                                                  BDC CORP.                                     Signature:                                                                          Print Name:                                                                         Title:                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           [SIGNATURE PAGE TO PLAIN ENGLISH GROWTH CAPITAL LOAN AND SECURITY AGREEMENT]                                                                                                                                  40 

 

                               Table of Exhibits and Schedules                                                 Exhibit A    Promissory Note  Exhibit B    Advance Request  Exhibit C    Certificate of Perfection  Exhibit D    Certificate of Compliance  Exhibit E    Form of Joinder Agreement  Exhibit F    Managerial Assistance Acknowledgement Letter  Schedule 1   Existing Indebtedness, Liens and Investments  Schedule 2   Schedule of Documents                                                                                                                                                                                                                                                                                                                                                                                                                    41Exhibit
10.5

 

EXCHANGE
AGREEMENT

 

Dated
as of July 9, 2019

 

This
Exchange Agreement (together with the exhibits and other attachments hereto, this “Agreement”) is entered into as
of the date first set forth above (the “Closing Date”) by and between (i) West Of Hudson Group, Inc., a Delaware corporation
(the “Company”); (ii) Amir Ben-Yohanan (“Mr. Yohanan”), (iii) Chris Young (“Mr. Young”) and
(iv) Simon Yu (“Mr. Yu”). Mr. Yohanan, Mr. Young and Mr. Yu may be referred to herein individually as a “Seller”
and collectively as the “Sellers”. Each of the Company and each Seller may be referred to herein collectively as the
“Parties” and separately as a “Party.”

 

WHEREAS,
Sellers are all of the members of WHP Entertainment, LLC, a California limited liability company currently in the process of changing
its name to Doiyen LLC (“Doiyen”), collectively owning 100% of the membership interests of Doiyen (the “Doiyen
Interests”); and

 

WHEREAS
the Company agrees to acquire the Doiyen Interests from the Sellers in exchange for the issuance by the Company to the Sellers
of a total of 100 shares of common stock, par value $0.0001 per share, of the Company (the “Exchange Shares”);

 

NOW
THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and
the mutual benefits to the Parties to be derived herefrom, and intending to be legally bound hereby, it is hereby agreed as follows:

 

Article
I. DEFINITIONS

 

Section
1.01 Definitions. In addition to the other terms defined herein, the following terms, as used herein, have the following
meanings:

 

	 	(a)	“Authority”
    means any governmental, regulatory or administrative body, agency or authority, any court or judicial authority, any arbitrator,
    or any public, private or industry regulatory authority, whether international, national, Federal, state, or local.
	 	 	 
	 	(b)	“Code”
    means the Internal Revenue Code of 1986, as amended.
	 	 	 
	 	(c)	“Law”
    means any domestic or foreign, federal, state, municipality or local law, statute, ordinance, code, rule, or regulation.
	 	 	 
	 	(d)	“Lien”
    means any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect of such asset, and any conditional
    sale or voting agreement or proxy, including any agreement to give any of the foregoing.
	 	 	 
	 	(e)	“Person”
    means an individual, corporation, partnership (including a general partnership, limited partnership or limited liability partnership),
    limited liability company, association, trust or other entity or organization, including a government, domestic or foreign,
    or political subdivision thereof, or an agency or instrumentality thereof.
	 	 	 
	 	(f)	“Securities
    Act” means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.

 

    	1

     

    

 

	 	(g)	“Tax(es)”
    means any federal, state, local or foreign tax, charge, fee, levy, custom, duty, deficiency, or other assessment of any kind
    or nature imposed by the Internal Revenue Service and any other Authority responsible for the collection, assessment or imposition
    of any Tax or the administration of any Law relating to any Tax (including any income (net or gross), gross receipts, profits,
    windfall profit, sales, use, goods and services, ad valorem, franchise, license, withholding, employment, social security,
    workers compensation, unemployment compensation, employment, payroll, transfer, excise, import, real property, personal property,
    intangible property, occupancy, recording, minimum, alternative minimum, environmental or estimated tax), including any liability
    therefor as a transferee (including under Section 6901 of the Code or similar provision of applicable Law) or successor, as
    a result of Treasury Regulation Section 1.1502-6 or similar provision of applicable Law or as a result of any Tax sharing,
    indemnification or similar agreement, together with any interest, penalty, additions to tax or additional amount imposed with
    respect thereto.

 

Section
1.02 Interpretive Provisions. Unless the express context otherwise requires: (i) the words “hereof,” “herein,”
and “hereunder” and words of similar import, when used in this Agreement, shall refer to this Agreement as a whole
and not to any particular provision of this Agreement; (ii) terms defined in the singular shall have a comparable meaning when
used in the plural, and vice versa; (iii) the terms “Dollars” and “$” mean United States Dollars; (iv)
references herein to a specific Section, Subsection, Recital, or Exhibit shall refer, respectively, to Sections, Subsections,
Recitals or Exhibits of this Agreement; (v) wherever the word “include,” “includes,” or “including”
is used in this Agreement, it shall be deemed to be followed by the words “without limitation”; (vi) references herein
to any gender shall include each other gender; (vii) references herein to any Person shall include such Person’s heirs,
executors, personal representatives, administrators, successors and assigns; provided, however, that nothing contained herein
is intended to authorize any assignment or transfer not otherwise permitted by this Agreement; (viii) references herein to a Person
in a particular capacity or capacities shall exclude such Person in any other capacity; (ix) references herein to any contract
or agreement (including this Agreement) mean such contract or agreement as amended, supplemented or modified from time to time
in accordance with the terms thereof; (x) with respect to the determination of any period of time, the word “from”
means “from and including” and the words “to” and “until” each means “to but excluding”;
(xii) references herein to any Law or any license mean such Law or license as amended, modified, codified, reenacted, supplemented
or superseded in whole or in part, and in effect from time to time; and (xiii) references herein to any Law shall be deemed also
to refer to all rules and regulations promulgated thereunder.

 

Article
II. EXCHANGE

 

Section
2.01 The Exchange.

 

	 	(a)	On
    the terms and subject to the conditions set forth in this Agreement, each Seller shall sell, assign, transfer and deliver
    to the Company, free and clear of all liens, pledges, encumbrances, charges, restrictions or known claims of any kind, nature,
    or description, all of the Doiyen Interests held by such Seller in exchange for the issuance to Seller of the Exchange Shares.
    The Parties acknowledge and agree that the Doiyen Interest held by each Seller, and the number of Exchange Shares to be received
    by each Seller, are as follows:

 

    	2

     

    

 

	 	(i)	Mr.
    Yohanan holds 75% of the Doiyen Interests and in exchange therefore shall receive 75 Exchange Shares.
	 	 	 
	 	(ii)	Mr.
    Young holds 20% of the Doiyen Interests and in exchange therefore shall receive 20 Exchange Shares.
	 	 	 
	 	(iii)	Mr.
    Yu holds 5% of the Doiyen Interests and in exchange therefore shall receive 5 Exchange Shares.

 

	 	(b)	The
    exchange as set forth in this Section 2.01, subject to the other terms and conditions herein, is referred to herein as the
    “Exchange.”
	 	 	 
	 	(c)	At
    the Closing, each Seller shall, on delivery to the Company of the applicable Assignment of Membership Interests in the form
    as attached hereto as Exhibit A, Exhibit B and Exhibit C, with respect to the Doiyen Interests held by such Seller (the “Assignments”),
    be recorded in the stock ledger of the Company as the owners of the applicable portion of the Exchange Shares.

 

Section
2.02 Closing. The closing of the transactions contemplated by this Agreement (the “Closing”) shall occur on
the Closing Date simultaneously with the execution and delivery of this Agreement by remote exchange of electronic documents.

 

Section
2.03 Seller’s Deliverables. At the Closing, each Seller shall deliver to the Company the Assignment as applicable
to such Seller, and thus all right, title and interest in and to the Doiyen Interests, free and clear of all liens, pledges, encumbrances,
charges, restrictions or known claims of any kind, nature, or description.

 

Section
2.04 Company Share Issuance. At the Closing, the Company shall record the Sellers as the owners of the applicable portion
of the Exchange Shares in the books and records of the Company. The Exchange Shares shall not be certificated.

 

Section
2.05 Additional Documents. At and following the Closing, the Parties shall execute, acknowledge, and deliver (or shall
ensure to be executed, acknowledged, and delivered), any and all certificates, opinions, financial statements, schedules, agreements,
resolutions, rulings or other instruments required by this Agreement to be so delivered at or prior to the Closing, together with
such other items as may be reasonably requested by the Parties and their respective legal counsel in order to effectuate or evidence
the transactions contemplated hereby.

 

Section
2.06 Taxes. Each Seller will pay all income, gain, sales, use, value added, transfer, stamp, registration, documentary,
excise, real property transfer or gains, or similar Taxes incurred as a result of the transactions contemplated by this Agreement
with respect to such Seller.

 

Article
III. REPRESENTATIONS AND WARRANTIES OF
EACH SELLER

 

As
an inducement to, and to obtain the reliance of the Company, each Seller, severally and not jointly and severally, represents
and warrants to the Company, as of the Closing Date, as follows:

 

Section
3.01 Existence and Power. Such Seller is a natural person and has the full power and is duly authorized under all applicable
Laws, regulations, ordinances, and orders of public authorities to carry on its business in all material respects as it is now
being conducted and to enter into this Agreement and fulfill its obligations herein.

 

    	3

     

    

 

Section
3.02 Due Authorization. Such Seller has taken all actions required by Law or otherwise to authorize the execution, delivery
and performance of this Agreement and to consummate the transactions herein contemplated

 

Section
3.03 Valid Obligation. This Agreement and all agreements and other documents executed by such Seller in connection herewith
constitute the valid and binding obligations of such Seller, enforceable in accordance with its or their terms, except as may
be limited by the Enforceability Exceptions

 

Section
3.04 Governmental Authorization. Neither the execution, delivery nor performance of this Agreement by such Seller requires
any consent, approval, license or other action by or in respect of, or registration, declaration or filing with any Authority.

 

Section
3.05 Title to and Issuance of Doiyen Interests. Such Seller is the record and beneficial owner and holder of the Doiyen
Interests as set forth in Section 2.01(a), free and clear of all Liens. None of the Doiyen Interests held by such Seller is subject
to pre-emptive or similar rights and such Seller does not have any pre-emptive rights or similar rights to purchase or receive
any Doiyen Interests or other interests in the Company. Such Seller has the power and authority to transfer the Doiyen Interests
to the Company as contemplated pursuant to the terms of this Agreement. Upon delivery of the Exchange Shares to such Seller in
exchange for the Doiyen Interests held by such Seller as contemplated hereby, the Company shall acquire good and valid title to
such Doiyen Interests, free and clear of all Liens.

 

Section
3.06 Broker’s, Finder’s or Similar Fees. There are no brokerage commissions, finder’s fees or similar
fees or commissions payable by such Seller in connection with the transactions contemplated hereby based on any agreement, arrangement
or understanding with such Seller or any action taken by such Seller.

 

Section
3.07 Investment Representations.

 

	 	(a)	Investment
    Purpose. Such Seller understands and agrees that the consummation of this Agreement including the delivery of the Exchange
    Shares to such Seller in exchange for the Doiyen Interests held by such Seller as contemplated hereby constitutes the offer
    and sale of securities under the Securities Act and applicable state statutes and that the Exchange Shares are being acquired
    for such Seller’s own account and not with a present view towards the public sale or distribution thereof, except pursuant
    to sales registered or exempted from registration under the Securities Act.
	 	 	 
	 	(b)	Investor
    Status. Such Seller is (i) an “accredited investor” as that term is defined in Rule 501(a) of Regulation D
    (an “Accredited Investor”), and/or (ii) an exempt investor in accordance with the provisions of Regulation S promulgated
    under the Securities Act. Such Seller has been furnished with all documents and materials relating to the business, finances
    and operations of the Company and its subsidiaries and information that such Seller requested and deemed material to making
    an informed decision regarding this Agreement and the underlying transactions.

 

    	4

     

    

 

	 	(c)	Information.
    Such Seller and its advisors, if any, have been furnished with all materials relating to the business, finances and operations
    of the Company and materials relating to the offer and sale of the Exchange Shares which have been requested by such Seller
    or its advisors. Such Seller and its advisors, if any, have been afforded the opportunity to ask questions of the Company.
    Such Seller understands that their investment in the Exchange Shares involves a significant degree of risk.
	 	 	 
	 	(d)	Governmental
    Review. Such Seller understands that no United States federal or state agency or any other government or governmental
    agency has passed upon or made any recommendation or endorsement of the Exchange Shares.

 

Article
IV. REPRESENTATIONS AND WARRANTIES OF
THE COMPANY

 

As
an inducement to, and to obtain the reliance of the Sellers, the Company represents and warrants to each of the Sellers as of
the Closing Date as follows:

 

Section
4.01 Organization. The Company is a corporation duly organized, validly existing, and in good standing under the Laws of
the State of Delaware and has the corporate power and is duly authorized under all applicable Laws, regulations, ordinances, and
orders of public authorities to carry on its business in all material respects as it is now being conducted.

 

Section
4.02 No Conflict; Due Authorization. The execution and delivery of this Agreement does not, and the consummation of the
transactions contemplated hereby will not, violate any provision of the Certificate of Incorporation and Bylaws of the Company
as in effect on the Closing Date (the “Company Organizational Documents”). The Company has taken all action required
by Law, the Company Organizational Documents, or otherwise to authorize the execution and delivery of this Agreement, and the
Company has full power, authority, and legal right and has taken all action required by Law, the Company Organizational Documents
or otherwise to consummate the transactions herein contemplated.

 

Section
4.03 Valid Obligation. This Agreement and all agreements and other documents executed by the Company in connection herewith
constitute the valid and binding obligation of the Company, enforceable in accordance with its or their terms, except as may be
limited by the Enforceability Exceptions.

 

Section
4.04 Governmental Authorization. Neither the execution and delivery nor performance of this Agreement by any the Company
Party requires any consent, approval, license or other action by or in respect of, or registration, declaration or filing with
any Authority.

 

Section
4.05 Approval of Agreement. The Board of Directors of the Company has authorized the execution and delivery of this Agreement
by the Company and has approved this Agreement and the transactions contemplated hereby.

 

Section
4.06 Broker’s, Finder’s or Similar Fees. There are no brokerage commissions, finder’s fees or similar
fees or commissions payable by the Company in connection with the transactions contemplated hereby based on any agreement, arrangement
or understanding with the Company or any action taken by the Company.

 

    	5

     

    

 

Article
V. MISCELLANEOUS

 

Section
5.01 Governing Law; Jurisdiction; Waiver of Jury Trial.

 

	 	(a)	This
    Agreement shall be governed by, enforced, and construed under and in accordance with the Laws of the State of Delaware, without
    giving effect to the principles of conflicts of law thereunder.
	 	 	 
	 	(b)	ANY
    LEGAL SUIT, ACTION OR PROCEEDING ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE OTHER TRANSACTION DOCUMENTS OR THE CONTEMPLATED
    TRANSACTIONS MAY BE INSTITUTED IN THE FEDERAL COURTS OF THE UNITED STATES OF AMERICA OR THE COURTS OF THE STATE OF CALIFORNIA,
    IN EACH CASE LOCATED IN LOS ANGELES COUNTY, CALIFORNIA AND EACH PARTY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF
    SUCH COURTS IN ANY SUCH SUIT, ACTION OR PROCEEDING. SERVICE OF PROCESS, SUMMONS, NOTICE OR OTHER DOCUMENT BY MAIL TO SUCH
    PARTY’S ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUIT, ACTION OR OTHER PROCEEDING BROUGHT
    IN ANY SUCH COURT. THE PARTIES IRREVOCABLY AND UNCONDITIONALLY WAIVE ANY OBJECTION TO THE LAYING OF VENUE OF ANY SUIT, ACTION
    OR ANY PROCEEDING IN SUCH COURTS AND IRREVOCABLY WAIVE AND AGREE NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH SUIT,
    ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.
	 	 	 
	 	(c)	EACH
    PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT OR THE OTHER TRANSACTION DOCUMENTS
    IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT ISSUES AND, THEREFORE, EACH SUCH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES
    ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LEGAL ACTION ARISING OUT OF OR RELATING TO THIS AGREEMENT, THE
    OTHER TRANSACTION DOCUMENTS OR THE CONTEMPLATED TRANSACTIONS. EACH PARTY TO THIS AGREEMENT CERTIFIES AND ACKNOWLEDGES THAT
    (A) NO REPRESENTATIVE OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT SEEK TO
    ENFORCE THE FOREGOING WAIVER IN THE EVENT OF A LEGAL ACTION, (B) SUCH PARTY HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER,
    (C) SUCH PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) SUCH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER
    THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS Section 5.01(c).

 

Section
5.02 Notices. Any notice or other communications required or permitted hereunder shall be in writing and shall be sufficiently
given if personally delivered to it or sent by email with return receipt requested, overnight courier or registered mail or certified
mail, postage prepaid, addressed to the Company at its principal office or to the addresses of the Sellers as set forth in the
books and records of the Company. Any Party may change its address for notices hereunder upon notice to each other Party in the
manner for giving notices hereunder. Any notice hereunder shall be deemed to have been given (i) upon receipt, if personally delivered,
(ii) on the day after dispatch, if sent by overnight courier, (iii) upon dispatch, if transmitted by email with return receipt
requested and received and (iv) three (3) days after mailing, if sent by registered or certified mail.

 

    	6

     

    

 

Section
5.03 Attorneys’ Fees. In the event that any Party institutes any action or suit to enforce this Agreement or to secure
relief from any default hereunder or breach hereof, the prevailing Party shall be reimbursed by the losing Party for all costs,
including reasonable attorney’s fees, incurred in connection therewith and in enforcing or collecting any judgment rendered
therein.

 

Section
5.04 Confidentiality. Each Party agrees that, unless and until the transactions contemplated by this Agreement have been
consummated, it and its representatives will hold in strict confidence all data and information obtained with respect to another
Party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal
inspection, of such other Party, and shall not use such data or information or disclose the same to others, except (i) to the
extent such data or information is published, is a matter of public knowledge, or is required by Law to be published; or (ii)
to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by
this Agreement. In the event of the termination of this Agreement, each Party shall return to the applicable other Party all documents
and other materials obtained by it or on its behalf and shall destroy all copies, digests, work papers, abstracts or other materials
relating thereto, and each Party will continue to comply with the confidentiality provisions set forth herein.

 

Section
5.05 Third Party Beneficiaries. This contract is strictly between the Company and the Sellers and, except as specifically
provided, no other Person and no director, officer, stockholder (other than the Sellers), employee, agent, independent contractor
or any other Person shall be deemed to be a third-party beneficiary of this Agreement.

 

Section
5.06 Entire Agreement. This Agreement represents the entire agreement between the Parties relating to the subject matter
thereof and supersedes all prior agreements, understandings and negotiations, written or oral, with respect to such subject matter.

 

Section
5.07 Survival; Termination. The representations, warranties, and covenants of the respective Parties shall survive the
Closing Date and the consummation of the transactions herein contemplated for a period of two years.

 

Section
5.08 Amendment; Waiver; Remedies.

 

	 	(a)	This
    Agreement may be amended, modified, superseded, terminated or cancelled, and any of the terms, covenants, representations,
    warranties or conditions hereof may be waived, only by a written instrument executed by each of the Parties.
	 	 	 
	 	(b)	Every
    right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law,
    or in equity, and may be enforced concurrently herewith, and no waiver by any Party of the performance of any obligation by
    the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing.
	 	 	 
	 	(c)	Neither
    any failure or delay in exercising any right or remedy hereunder or in requiring satisfaction of any condition herein nor
    any course of dealing shall constitute a waiver of or prevent any Party from enforcing any right or remedy or from requiring
    satisfaction of any condition. No notice to or demand on a Party waives or otherwise affects any obligation of that Party
    or impairs any right of the Party giving such notice or making such demand, including any right to take any action without
    notice or demand not otherwise required by this Agreement. No exercise of any right or remedy with respect to a breach of
    this Agreement shall preclude exercise of any other right or remedy, as appropriate to make the aggrieved Party whole with
    respect to such breach, or subsequent exercise of any right or remedy with respect to any other breach.

 

    	7

     

    

 

	 	(d)	Notwithstanding
    anything else contained herein, no Party shall seek, nor shall any Party be liable for, consequential, punitive or exemplary
    damages, under any tort, contract, equity, or other legal theory, with respect to any breach (or alleged breach) of this Agreement
    or any provision hereof or any matter otherwise relating hereto or arising in connection herewith.

 

Section
5.09 Arm’s Length Bargaining; No Presumption Against Drafter. This Agreement has been negotiated at arm’s-length
by parties of equal bargaining strength, each represented by counsel or having had but declined the opportunity to be represented
by counsel and having participated in the drafting of this Agreement. This Agreement creates no fiduciary or other special relationship
between the Parties, and no such relationship otherwise exists. No presumption in favor of or against any Party in the construction
or interpretation of this Agreement or any provision hereof shall be made based upon which Person might have drafted this Agreement
or such provision.

 

Section
5.10 Headings. The headings contained in this Agreement are intended solely for convenience and shall not affect the rights
of the Parties.

 

Section
5.11 No Assignment or Delegation. No Party may assign any right or delegate any obligation hereunder, including by merger,
consolidation, operation of law, or otherwise, without the written consent of the all of the other Parties and any purported assignment
or delegation without such consent shall be void, in addition to constituting a material breach of this Agreement. This Agreement
shall be binding on the permitted successors and assigns of the Parties.

 

Section
5.12 Further Assurances. Each Party shall execute and deliver such documents and take such action, as may reasonably be
considered within the scope of such Party’s obligations hereunder, necessary to effectuate the transactions contemplated
by this Agreement.

 

Section
5.13 Specific Performance. The Parties agree that irreparable damage would occur in the event that any of the provisions
of this Agreement were not performed by them in accordance with the terms hereof or were otherwise breached and that each Party
hereto shall be entitled to an injunction or injunctions, specific performance and other equitable relief to prevent breaches
of the provisions hereof and to enforce specifically the terms and provisions hereof, without the proof of actual damages, in
addition to any other remedy to which they are entitled at law or in equity. Each Party agrees to waive any requirement for the
security or posting of any bond in connection with any such equitable remedy, and agrees that it will not oppose the granting
of an injunction, specific performance or other equitable relief on the basis that (a) any other Party has an adequate remedy
at law, or (b) an award of specific performance is not an appropriate remedy for any reason at law or equity.

 

Section
5.14 Counterparts. This Agreement may be executed in multiple counterparts, each of which shall be deemed an original and
all of which taken together shall be but a single instrument. The execution and delivery of a facsimile or other electronic transmission
of a signature to this Agreement shall constitute delivery of an executed original and shall be binding upon the person whose
signature appears on the transmitted copy.

 

[Signatures
Appear on Following Page]

 

    	8

     

    

 

IN
WITNESS WHEREOF, the Parties have executed this Agreement as of the Closing Date.

 

	 	West
    Of Hudson Group, Inc.
	 	 
	 	By:	/s/
    Amir Ben-Yohanan 
	 	Name:
    	Amir
    Ben-Yohanan
	 	Title:
    	Chief
    Executive Officer
	 	 
	 	Sellers:
	 	 
	 	Amir
    Ben-Yohanan
	 	 
	 	By:	/s/
    Amir Ben-Yohanan 
	 	Name:	Amir
    Ben-Yohanan
	 	 
	 	Chris
    Young
	 	 
	 	By:	/s/
    Chris Young
	 	Name:
    	Chris
    Young
	 	 
	 	Simon
    Yu
	 	 
	 	By:	/s/
    Simon Yu 
	 	Name:
    	Simon
    Yu

 

    	9

     

    

 

Exhibit
A

 

Assignment
of Membership Interests

 

[Amir
Ben-Yohanan]

 

This
Assignment of Membership Interests (“Assignment”) dated this 9th day of July, 2020, is entered into by
and between Amir Ben-Yohanan (“Assignor”) and West Of Hudson Group, Inc., a Delaware corporation (“Assignee”).

 

Assignor
currently holds 75% of the Membership Interest of WHP Entertainment, LLC, a California limited liability company currently in
the process of changing its name to Doiyen LLC (the “Company”).

 

Assignor,
for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration received from
or on behalf of the Assignee at or before the ensealing and delivery of these presents, the receipt and sufficiency whereof is
hereby acknowledged, now hereby assigns, transfers and sets over unto the Assignee all right, title and interest in all of the
Membership Interest in the Company held by Assignor (the “Transferred Interests”), which Membership Interest has been
delivered to Assignee on the date hereof, to have and to hold the same unto the Assignee, the Assignee’s legal representatives,
successors and assigns forever.

 

Assignor,
in connection with Assignor’s assignment of the Transferred Interests, does hereby warrant, covenant and agree with the
Assignee that Assignor has good right and authority to execute this Assignment and Assignor is the sole beneficial owner of the
Membership Interest as of the date hereof.

 

IN
WITNESS WHEREOF, the Assignor and Assignee have each caused this Assignment to be executed on the date written below.

 

Signed,
sealed and delivered in the presence of:

 

	Witnesses:	 	 	Assignor:
    Amir Ben-Yohanan
	 	 	 	 
	 	 	 	 
	Print
    Name:	 	 	By:	/s/
    Amir Ben-Yohanan
	 	 	 	Name:	Amir
    Ben-Yohanan
	 	 	 	 
	Print
    Name:	 	 	Assignee:
    West Of Hudson Group
	 	 	 	 	 
	 	 	 	By:	/s/
    Amir Ben-Yohanan
	 	 	 	Name:	Amir
    Ben-Yohanan
	 	 	 	Title:	Chief
    Executive Officer

 

    	 

     

    

 

Exhibit
B

 

Assignment
of Membership Interests

 

[Chris
Young]

 

This
Assignment of Membership Interests (“Assignment”) dated this 9th day of July, 2020, is entered into by
and between Chris Young (“Assignor”) and West Of Hudson Group, Inc., a Delaware corporation (“Assignee”).

 

Assignor
currently holds 20% of the Membership Interest of WHP Entertainment, LLC, a California limited liability company currently in
the process of changing its name to Doiyen LLC (the “Company”).

 

Assignor,
for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration received from
or on behalf of the Assignee at or before the ensealing and delivery of these presents, the receipt and sufficiency whereof is
hereby acknowledged, now hereby assigns, transfers and sets over unto the Assignee all right, title and interest in all of the
Membership Interest in the Company held by Assignor (the “Transferred Interests”), which Membership Interest has been
delivered to Assignee on the date hereof, to have and to hold the same unto the Assignee, the Assignee’s legal representatives,
successors and assigns forever.

 

Assignor,
in connection with Assignor’s assignment of the Transferred Interests, does hereby warrant, covenant and agree with the
Assignee that Assignor has good right and authority to execute this Assignment and Assignor is the sole beneficial owner of the
Membership Interest as of the date hereof.

 

IN
WITNESS WHEREOF, the Assignor and Assignee have each caused this Assignment to be executed on the date written below.

 

Signed,
sealed and delivered in the presence of:

 

	Witnesses:	 	 	Assignor:
    Chris Young
	 	 	 	 
	 	 	 	 
	Print
    Name:	 	 	By:	/s/
    Chris Young 
	 	 	 	Name:	Chris
    Young
	 	 	 	 
	Print
    Name:	 	 	Assignee:
    West Of Hudson Group
	 	 	 	 	 
	 	 	 	By:	/s/ Amir
    Ben-Yohanan
	 	 	 	Name:	Amir
    Ben-Yohanan
	 	 	 	Title:	Chief
    Executive Officer

 

    	 

     

    

 

Exhibit
C

 

Assignment
of Membership Interests

 

[Simon
Yu]

 

This
Assignment of Membership Interests (“Assignment”) dated this 9th day of July, 2020, is entered into by
and between Simon Yu (“Assignor”) and West Of Hudson Group, Inc., a Delaware corporation (“Assignee”).

 

Assignor
currently holds 5% of the Membership Interest of WHP Entertainment, LLC, a California limited liability company currently in the
process of changing its name to Doiyen LLC (the “Company”).

 

Assignor,
for and in consideration of the sum of Ten and No/100 Dollars ($10.00) and other good and valuable consideration received from
or on behalf of the Assignee at or before the ensealing and delivery of these presents, the receipt and sufficiency whereof is
hereby acknowledged, now hereby assigns, transfers and sets over unto the Assignee all right, title and interest in all of the
Membership Interest in the Company held by Assignor (the “Transferred Interests”), which Membership Interest has been
delivered to Assignee on the date hereof, to have and to hold the same unto the Assignee, the Assignee’s legal representatives,
successors and assigns forever.

 

Assignor,
in connection with Assignor’s assignment of the Transferred Interests, does hereby warrant, covenant and agree with the
Assignee that Assignor has good right and authority to execute this Assignment and Assignor is the sole beneficial owner of the
Membership Interest as of the date hereof.

 

IN
WITNESS WHEREOF, the Assignor and Assignee have each caused this Assignment to be executed on the date written below.

 

Signed,
sealed and delivered in the presence of:

 

	Witnesses:	 	 	Assignor:
    Simon Yu
	 	 	 	 
	 	 	 	 
	Print
    Name:	 	 	By:	/s/
    Simon Yu
	 	 	 	Name:	Simon
    Yu
	 	 	 	 
	Print
    Name:	 	 	Assignee:
    West Of Hudson Group
	 	 	 	 	 
	 	 	 	By:	/s/
    Amir Ben-Yohanan 
	 	 	 	Name:	Amir
    Ben-Yohanan
	 	 	 	Title:	Chief
    Executive Officer

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