Document:

KLX INC.

 

NON-EMPLOYEE DIRECTORS STOCK

 

AND

 

DEFERRED COMPENSATION PLAN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

  

  

             

TABLE OF CONTENTS

 

Page

 

	
SECTION 1.

	
PURPOSES AND AUTHORIZED SHARES

	
3

	
SECTION 2.

	
DEFINITIONS

	
3

	
SECTION 3.

	
PARTICIPATION

	
5

	
SECTION 4.

	
SHARE OR DEFERRAL ELECTIONS

	
5

	
4.1

	
Time And Types Of Elections

	
5

	
4.2

	
Permitted Amounts; Elections

	
5

	
SECTION 5.

	
DEFERRAL ACCOUNTS

	
5

	
5.1

	
Cash Account

	
5

	
5.2

	
Stock Unit Account

	
6

	
5.3

	
Dividend Equivalent Credits To Stock Unit Account

	
6

	
5.4

	
Immediate Vesting And Accelerated Crediting

	
6

	
5.5

	
Distribution Of Cash Or Shares

	
7

	
5.6

	
Adjustments In Case Of Changes In Common Stock

	
7

	
SECTION 6.

	
ADMINISTRATION

	
8

	
6.1

	
The Administrator

	
8

	
6.2

	
Committee Action

	
8

	
6.3

	
Rights And Duties; Delegation And Reliance; Decisions Binding

	
8

	
SECTION 7.

	
PLAN CHANGES AND TERMINATION

	
9

	
7.1

	
Amendments

	
9

	
7.2

	
Term

	
9

	
SECTION 8.

	
MISCELLANEOUS

	
9

	
8.1

	
Unfunded Plan And Limitation On Participants’ Rights

	
9

	
8.2

	
Beneficiaries

	
10

	
8.3

	
Benefits Not Transferable; Obligations Binding Upon Successors

	
10

	
8.4

	
Governing Law; Severabilty

	
10

	
8.5

	
Compliance With Laws

	
10

	
8.6

	
Plan Construction

	
10

	
8.7

	
Headings Not Part Of Plan

	
11

 

 

 

 

 

 

  

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KLX INC.

NON-EMPLOYEE DIRECTORS STOCK

AND

DEFERRED COMPENSATION PLAN

 

SECTION 1.  PURPOSES AND AUTHORIZED SHARES

 

The purposes of the KLX Inc. Non-Employee Directors Stock and Deferred Compensation Plan (the “Plan”) are to attract, motivate and retain eligible non-employee directors of KLX Inc. (the “Company”) who elect to participate in this Plan by offering them opportunities to defer compensation and to encourage directors to increase their stock ownership in the Company.  An aggregate number not to exceed 200,000 shares of Common Stock (subject to adjustments contemplated by Section 5.6 hereof) may be delivered pursuant to this Plan.

 

SECTION 2.  DEFINITIONS

 

Whenever the following terms are used in this Plan, they shall have the meaning specified below unless the context clearly indicates to the contrary:

 

ACCOUNT or ACCOUNTS means one or more of the Participant’s Cash Account(s) or Stock Unit Account(s), as the context requires.

 

APPLICABLE PERCENTAGE means the percentage of Eligible Compensation subject to deferral or payment in Shares.

 

AVERAGE FAIR MARKET VALUE means the average of the Fair Market Values of a share of Common Stock during the last ten (10) trading days preceding the applicable Award Date.

 

AWARD DATE means, in the case of Cash Account deferrals, each date on which cash would otherwise have been paid; in the case of Unit Account deferrals, the last day of each calendar quarter.

 

BOARD means the Board of Directors of the Company, as constituted from time to time.

 

CASH ACCOUNT means the bookkeeping account maintained by the Company on behalf of a Participant who elects to defer his or her Compensation in cash pursuant to Section 4.

 

CODE means the Internal Revenue Code of 1986, as amended from time to time, and the applicable guidance, rulings, and regulations promulgated thereunder.

 

COMMON STOCK means the Common Stock of the Company, par value $0.01 per share, subject to adjustment pursuant to Section 5.6 hereof.

 

COMMITTEE means the Board or a Committee of the Board acting under delegated authority from the Board.

 

  

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COMPANY means KLX Inc., a Delaware corporation, and its successors and assigns.

 

DIVIDEND EQUIVALENT means the amount of cash dividends or other cash distributions paid by the Company on that number of shares of Common Stock which is equal to the number of Stock Units then credited to a Participant’s Stock Unit Account on the applicable measurement date, which amount shall be allocated as additional Stock Units to the Participant’s Stock Unit Account, as provided in Section 5.3 hereof.

 

EARNINGS mean those earnings that are allocable to the Participant’s Cash Accounts in such manner as the Committee shall reasonably determine.

 

EFFECTIVE DATE means the date of the consummation of the distribution of all of the shares of the Company’s Common Stock on a pro rata basis to the holders of B/E Aerospace, Inc. common stock.

 

ELIGIBLE COMPENSATION means retainer and/or meeting fees for services as a director, as established by the Board from time to time, which may be payable in cash or Shares.

 

ELIGIBLE DIRECTOR means a member of the Board who is not an officer or employee of the Company or a subsidiary and who is compensated in the capacity as a director.

 

EXCHANGE ACT means the Securities Exchange Act of 1934, as amended from time to time, and the rules and regulations promulgated thereunder.

 

FAIR MARKET VALUE means on any date the average of the high and low prices of the Common Stock, as published in The Wall Street Journal or otherwise reliably reported, of the principal securities exchange or market on which the Common Stock is so listed, admitted to trade, or quoted, or, if there is no trading of the Common Stock on such date, then the average of the high and low prices of the Common Stock as quoted on the next preceding date on which there was trading in such shares.  If the Common Stock is not so listed, admitted or quoted, the Committee may designate such other exchange, market or source of data as it deems appropriate for determining such value of purposes of this Plan.

 

PARTICIPANT means an Eligible Director who elects to participate in this Plan or otherwise has an Account balance under this Plan.

 

PLAN means the KLX Inc. Non-Employee Directors Stock and Deferred Compensation Plan, as amended from time to time.

 

SHARES means shares of Common Stock.

 

STOCK UNIT OR UNIT means a non-voting unit of measurement which is deemed for bookkeeping and payment purposes to represent the right to receive one share of Common Stock of the Company pursuant to the terms of this Plan.

 

STOCK UNIT ACCOUNT means the bookkeeping account maintained by the Company on behalf of each Participant which is credited with Stock Units in accordance with Section 5.2.

 

  

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YEAR means each calendar year during the term of this Plan.

 

SECTION 3.  PARTICIPATION

 

Each Eligible Director may elect to defer under and subject to Section 4 of this Plan his or her Eligible Compensation for any Year.

 

SECTION 4.  SHARE OR DEFERRAL ELECTIONS

 

4.1           TIME AND TYPES OF ELECTIONS.  On or before December 31 immediately preceding each succeeding Year (or, in the case of a person who first becomes an Eligible Director during the Year, within 30 days after becoming an Eligible Director), each Eligible Director may make the following two irrevocable elections, subject to Section 4.2 hereof:

 

(1)           To the extent that Participant’s Eligible Compensation is designated as payable to the Participant in the form of cash, the Company may, in its sole discretion, permit a Participant to elect, in lieu of cash, (a) to receive such Eligible Compensation currently in Shares, (b) to defer such Eligible Compensation in a Cash Account, (c) to defer such Eligible Compensation in a Stock Unit Account, or (d) to select one or more of the preceding payment or deferral methods in accordance with the Applicable Percentage increments set forth in Section 4.2 hereof such that the sum of all such Applicable Percentage increments does not exceed 100%.

 

(2)           To the extent that Participant’s Eligible Compensation is designated as payable to the Participant in the form of Common Stock, the Company may, in its sole discretion, permit a Participant to elect, in lieu of Common Stock, to defer all or a portion of such Eligible Compensation in a Stock Unit Account in accordance with the Applicable Percentage increments set forth in Section 4.2 hereof such that the sum of all such Applicable Percentage increments does not exceed 100%.

 

4.2           PERMITTED AMOUNTS; ELECTIONS.  The portions of the Eligible Compensation subject to deferral or payment in Shares shall be limited to increments of 25%, 50%, 75% or 100% (the “Applicable Percentage”).  All elections shall be in writing on forms provided by the Company (and such election forms may, in the discretion of the Company, require that a Participant defer all or a specified portion of such Participant’s Eligible Compensation in accordance with this Section 4).  If an election is made under this Section 4 and is not revoked or changed with respect to the following Year by the end of the current Year, the election shall be deemed a continuing one and shall remain in place with respect to compensation for the following Year.

 

SECTION 5.  DEFERRAL ACCOUNTS

 

5.1           CASH ACCOUNT.  If an Eligible Director has made an election under Section 4.1(1)(b) to defer the receipt of cash compensation in a Cash Account, the Company shall establish and maintain a Cash Account for the Participant under this Plan, which Account shall be a memorandum account on the books of the Company.  A Participant’s Cash Account shall be credited as follows:

 

  

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(a)           As of the date the Eligible Compensation would have been otherwise payable, the Company shall credit the Participant’s Cash Account with an amount equal to the Applicable Percentage of the Eligible Compensation.

 

(b)           As of the last day of each calendar quarter, each Participant’s Cash Account shall be credited with the Earnings reasonably determined by the Committee to be allocable to such Account.

 

5.2           STOCK UNIT ACCOUNT.

 

(a)           Elective Deferrals.  If an Eligible Director has made an election under Section 4.1(1)(c) or 4.1(2) to defer receipt of cash compensation or stock compensation in a Stock Unit Account, the Committee shall, as of the last day of each calendar quarter in which the Eligible Compensation was earned and would otherwise be paid, credit the Participant’s Stock Unit Account with a number of Units determined by dividing an amount which is equal to the Applicable Percentage of the Participant’s Eligible Compensation by the Average Fair Market Value of a share of Common Stock as of the Award Date.

 

(b)           Limitations on Rights Associated with Units.  A Participant’s Stock Unit Account shall be a memorandum account on the books of the Company.  The Units credited to a Participant’s Stock Unit Account shall be used solely as a device for the determination of the number of shares of Common Stock to be eventually distributed to the Participant in accordance with this Plan.  The Units shall not be treated as property or as a trust fund of any kind.  No Participant shall be entitled to any voting or other stockholder rights with respect to Units granted or credited under this Plan.  The number of Units credited (and the number of Shares to which the Participant is entitled under this Plan) shall be subject to adjustment in accordance with Section 5.6 and the terms of this Plan.

 

5.3           DIVIDEND EQUIVALENT CREDITS TO STOCK UNIT ACCOUNT.  As of the end of each quarter, a Participant’s Stock Unit Account shall be credited with additional Units in an amount equal to the Dividend Equivalent representing dividends paid during the quarter on a number of shares equal to the aggregate number of Stock Units in the Participant’s Stock Unit Account as of the end of the preceding quarter divided by the Average Fair Market Value of a share of Common Stock as of the applicable crediting date.

 

5.4           IMMEDIATE VESTING AND ACCELERATED CREDITING.

 

(a)           Units and Other Amounts Vest Immediately.  All Units or other amounts credited to one or more of a Participant’s Accounts shall be at all times fully vested and not subject to a risk of forfeiture.

 

(b)           Acceleration of Crediting of Accounts.  In the event a Participant ceases to serve as a director of the Company, the crediting of amounts to a Participant’s Cash Account, if applicable, and the crediting of Units to a Participant’s Stock Unit Account, if applicable, shall be accelerated to the date of termination of service.  In such case, the amount or number of Units credited for the quarter in which the termination of services occurs shall be prorated based on the number of days of service during the applicable quarter, and the Award Date shall be deemed to be the date of termination of service.

 

  

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5.5           DISTRIBUTION OF CASH OR SHARES.

 

(a)           Time and Manner of Distribution of Accounts.  The cash or Shares payable under this Plan in respect of Cash Accounts or Stock Unit Accounts, respectively, shall be distributed to the Participant (or, in the event of his or her death, the Participant’s Beneficiary) at such time and in such manner as elected by the Participant and set forth in the Participant’s election form.  In the sole discretion of the Company (as set forth in the form of election form provided by the Company), a Participant may elect distributions in one of the following two forms:  (i) a lump sum distribution, or (ii) annual installments not to exceed ten (10) such annual installments.  Each annual installment shall be equal to the value of the Account being distributed multiplied by a fraction, the numerator of which is one (1) and the denominator of which is the number of installments remaining to be paid.  In the event that a Participant fails to make an election, then distribution shall be made in the form of a lump sum.  Each Account, less any applicable withholding taxes, shall be distributed commencing the earlier of (x) the date specified in the Participant’s election form as described above, or (y) the first day of the month immediately following the date of the Participant’s termination of service, or as soon as administratively practicable thereafter.

 

(b)           Small Distributions.  Notwithstanding the foregoing, if after a termination of service the balance remaining in a Participant’s Cash Account is less than $10,000 or, if the aggregate fair market value of the Units remaining in the Participant’s Stock Unit Account on the date of the termination of service is less than $10,000, then such remaining balances shall be distributed in a lump sum.

 

(c)           Election to Further Defer Distribution of Cash Accounts or Stock Unit Accounts.  A Participant may, with the approval of the Administrator, elect to further defer the commencement of any distribution to be made with respect to amounts credited under any Cash or Stock Unit Account by filing a new written election with the Committee on a form approved by the Committee; provided, however, that (1) no such election shall be effective until twelve (12) months after such election is filed with the Committee, (2) no such new election shall be effective with respect to any Account after benefits with respect to the Account shall have commenced, and (3) such election must provide that the first payment with respect to such election must be deferred for at least five (5) years from the date such payment would otherwise have been made.

 

(d)           Form of Distribution of Cash Accounts or Stock Unit Accounts.  Stock Units credited to a Participant’s Stock Unit Account shall be distributed in an equivalent whole number of Shares of the Company’s Common Stock.  Any fractional share interests shall be accumulated and paid in cash with the last distribution.  All amounts credited to a Participant’s Cash Account shall be distributed in cash.

 

5.6           ADJUSTMENTS IN CASE OF CHANGES IN COMMON STOCK.  If there shall occur any change in the outstanding shares of the Company’s Common Stock by reason of any stock dividend, stock split, recapitalization, merger, consolidation, combination or other reorganization, exchange of shares, sale of all or substantially all of the assets of the Company, split-up, split-off, spin-off, extraordinary redemption, liquidation or similar corporate change or change in capitalization or any distribution to holders of the Company’s Common Stock (other than cash dividends and cash distributions), the Committee shall make such proportionate and equitable adjustments consistent with the effect of such event on stockholders generally (but without duplication of benefits if Dividend Equivalents are credited), as the Committee determines to be necessary or appropriate, in the number, kind and/or character of shares of Common Stock or other securities, property and/or rights contemplated hereunder, including any appropriate adjustments to the market prices used in the determination of the number of Shares and Units, and in rights in respect of Stock Unit Accounts credited under this Plan so as to preserve the benefits intended.

 

  

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SECTION 6.  ADMINISTRATION

 

6.1           THE ADMINISTRATOR.  The Administrator of this Plan shall be the Board as a whole or a Committee as appointed from time to time by the Board to serve as administrator of this Plan.  The participating members of any Committee so acting shall include, as to decisions in respect of participants who are subject to Section 16 of the Exchange Act, only those members who are Non-Employee Directors (as defined in Rule 16b-3 promulgated under the Exchange Act (“Rule 16b-3”)).  Members of the Committee shall not receive any additional compensation for administration of this Plan.

 

6.2           COMMITTEE ACTION.  A member of the Committee shall not vote upon any matter which relates solely to himself or herself as a Participant in this Plan.  Action of the Committee with respect to the administration of this Plan shall be taken pursuant to a majority vote or (assuming compliance with Section 6.1) by unanimous written consent of its members.

 

6.3           RIGHTS AND DUTIES; DELEGATION AND RELIANCE; DECISIONS BINDING.  Subject to the limitations of this Plan, the Committee shall be charged with the general administration of this Plan and the responsibility for carrying out its provisions, and shall have powers necessary to accomplish those purposes, including, but not by way of limitation, the following:

 

(1)           To construe and interpret this Plan;

 

(2)           To resolve any questions concerning the amount of benefits payable to a Participant (except that no member of the Committee shall participate in a decision relating solely to his or her own benefits);

 

(3)           To make all other determinations required by this Plan;

 

(4)           To maintain all the necessary records for the administration of this Plan; and

 

(5)           To make and publish forms, rules and procedures for the administration of this Plan.

 

The determination of the Committee made in good faith as to any disputed question or controversy and the Committee’s determination of benefits payable to Participants, including decisions as to adjustments under Section 5.6, shall be conclusive and binding for all purposes of this Plan.  In performing its duties, the Committee shall be entitled to rely on information, opinions, reports or statements prepared or presented by:  (i) officers or employees of the Company whom the Committee believes to be reliable and competent as to such matters; and (ii) counsel (who may be employees of the Company), independent accountants and other persons as to matters which the Committee believes to be within such persons’ professional or expert competence.

 

  

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The Committee shall be fully protected with respect to any action taken or omitted by it in good faith pursuant to the advice of such persons.  The Committee may delegate ministerial, bookkeeping and other non-discretionary functions to individuals who are officers or employees of the Company.

 

SECTION 7.  PLAN CHANGES AND TERMINATION

 

7.1           AMENDMENTS.  The Board shall have the right to amend this Plan in whole or in part from time to time or may at any time suspend or terminate this Plan (provided such amendment, suspension or termination complies with requirements under Code Section 409A); provided, however, that no amendment or termination shall cancel or otherwise adversely affect in any way, without his or her written consent, any Participant’s rights with respect to then outstanding Accounts or Dividend Equivalent credits thereon so long as the Account is outstanding).  Any amendments authorized hereby shall be stated in an instrument in writing, and all Participants shall be bound by upon receipt of notice the amendment.

 

7.2           TERM.  It is the current expectation of the Company that this Plan shall continue indefinitely, but continuance of this Plan is not assumed as a contractual obligation of the Company.  If the Board of Directors decides to discontinue or terminate this Plan, it shall notify the Committee and Participants in this Plan of its action in writing, and this Plan shall be terminated at the time set forth on the notice.  All Participants shall be bound thereby.  No benefits shall accrue in respect of Eligible Compensation earned after a discontinuance or termination of this Plan.

 

SECTION 8.  MISCELLANEOUS

 

8.1           UNFUNDED PLAN AND LIMITATION ON PARTICIPANTS’ RIGHTS.  Participants shall have the rights only if general unsecured creditors of the Company with respect to amounts credited and benefits payable, if any, on their Cash Account, and rights no greater than the right to receive the Common Stock (or equivalent value as a general unsecured creditor) with respect to Stock Units or Share Accounts.  The Plan constitutes a mere promise by the Company to make distributions in the future.  It is intended that this Plan shall constitute an “unfunded” plan for tax purposes.  Participation in this Plan shall not give any person the right to serve as a member of the Board or any rights or interests other than as herein provided.  Participants shall not be entitled to receive actual dividends or to vote Shares until after delivery of a certificate representing the Shares.

 

  

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8.2           BENEFICIARIES.

 

(a)           Beneficiary Designation.  Upon forms provided by and subject to conditions imposed by the Company, each Participant may designate in writing the Beneficiary or Beneficiaries (as defined in Section 8.2(b)) whom such Participant desires to receive any amounts payable under this Plan after his or her death.  The Company and the Committee may rely on the Participant’s designation of a Beneficiary or Beneficiaries last filed in accordance with the terms of this Plan.

 

(b)           Definition of Beneficiary.  A Participant’s “Beneficiary” or “Beneficiaries” shall be the person, persons, trust or trusts (or similar entity) designated by the Participant or, in the absence of a designation, entitled by will or the laws of descent and distribution to receive the Participant’s benefits under this Plan in the event of the Participant’s death, and shall mean the Participant’s executor or administrator if no other Beneficiary is identified and able to act under the circumstances.

 

8.3           BENEFITS NOT TRANSFERABLE; OBLIGATIONS BINDING UPON SUCCESSORS.  Benefits of a Participant under this Plan shall not be assignable or transferable and any purported transfer, assignment, pledge or other encumbrance or attachment of any payments or benefits under this Plan, or any interest therein, other than by operation of law or pursuant to Section 8.2, shall not be permitted or recognized.  Shares deliverable under this Plan may be subject to restrictions on transfer under applicable securities laws, unless the Shares are duly registered prior to issuance.  Obligations of the Company under this Plan shall be binding upon successors of the Company.

 

8.4           GOVERNING LAW; SEVERABILTY.  The validity of this Plan or any of its provisions shall be construed, administered and governed in all respects under the laws of the State of Florida.  If any provision of this Plan shall be held by a court of competent jurisdiction to be invalid or unenforceable, the remaining provisions hereof shall continue to be fully effective.

 

8.5           COMPLIANCE WITH LAWS.  This Plan and the offer, issuance and delivery of shares of Common Stock and/or the payment of money through the deferral of compensation under this Plan are subject to compliance with all applicable federal and state laws, rules and regulations (including but not limited to state and federal securities law) and to such approvals by any listing, agency or any regulatory or governmental authority as may, in the opinion of counsel for the Company, be necessary or advisable in connection therewith.  Any securities delivered under this Plan shall be subject to prior registration or such restrictions as the Company may deem necessary or desirable to assure compliance with all applicable legal requirements, and the person acquiring such securities shall, if requested by the Company, provide such assurances and representations to the Company as it may reasonably request to assure such compliance.

 

8.6           PLAN CONSTRUCTION.  This Plan is intended to comply with the requirements of Section 409A of the Internal Revenue Code and the regulations and other guidance issued thereunder, as in effect from time to time.  To the extent a provision of the Plan is contrary to or fails to address the requirements of Code Section 409A, the Plan shall be construed and administered as necessary to comply with such requirements until this Plan is appropriately amended to comply with such requirements.

 

  

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It is the intent of the Company that transactions pursuant to this Plan satisfy and be interpreted in a manner that satisfies the applicable conditions for exemption under Rule 16b-3 so that to the extent elections are timely made, elective deferrals (including the crediting of Units and Dividend Equivalents and the distribution of Shares hereunder) will be entitled to the benefits of Rule 16b-3 or other exemptive rules under Section 16 of the Exchange Act and will not be subjected to avoidable liability thereunder.  The Committee may, subject to Sections 8.5 hereof, permit elections by Eligible Directors that would not qualify for exemption under Section 16(b) of the Exchange Act, so long as the availability of any exemption thereunder for other Participants under this Plan is not compromised.

 

8.7           HEADINGS NOT PART OF PLAN.  Headings and subheadings in this Plan are inserted for reference only and are not to be considered in the construction of the provisions hereof.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 11LOAN
AND SECURITY AGREEMENT

 

between

 

IEC
SPV, LLC

 

and

 

BFG
Loan Holdings, LLC

 

    	 

    	 

    

 

TABLE
OF CONTENTS

 

	Section	 	Title	 	Page
	 	 	 	 	 
	Section
    1.	 	Definitions	 	1
	Section
    2.	 	The
    Loan	 	13
	Section
    3.	 	Collateral	 	16
	Section
    4.	 	Representations
    and Warranties	 	20
	Section
    5.	 	Conditions
    Precedent	 	24
	Section
    6.	 	Affirmative
    Covenants	 	26
	Section
    7.	 	Negative
    Covenants	 	32
	Section
    8.	 	Default	 	34
	Section
    9.	 	Miscellaneous	 	40
	 	 	 	 	 
	Schedule
    4.7	 	Intellectual
    Property	 	 
	Schedule
    4.13	 	Liens	 	 
	Schedule
    7.4	 	Guaranties	 	 

 

    	2

    	 

    

 

LOAN
AND SECURITY AGREEMENT

 

THIS
LOAN AND SECURITY AGREEMENT, dated as of June 11, 2012 is made and entered into by and between IEC
SPV, LLC, a Delaware limited liability company (the “Borrower”), and BFG
Loan Holdings, LLC, a Florida limited liability company (the “Lender”).

 

BACKGROUND

 

The
Borrower desires to obtain, and the Lender has agreed to provide, the Loan defined below and the Lender is willing to make the
Loan upon the terms and conditions set forth herein.

 

NOW,
THEREFORE, in consideration of the foregoing premises and intending to be legally bound, the parties agree as follows:

 

1. DEFINITIONS.

 

1.1
Definitions. As used in this Agreement, the following terms shall have these meanings:

 

“Account”
and “Accounts” shall mean an account as now or hereafter defined in the UCC, now owned or hereafter
acquired by the Borrower or in which the Borrower now holds or hereafter acquires 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) now owned or hereafter received or acquired by or belonging or owing to the Borrower
(including, without limitation, under any trade name, style or division thereof) whether arising out of goods sold or services
rendered by the Borrower or from any other transaction, whether or not the same involves the sale of goods or services by Borrower
(including, without limitation, any such obligation which may be characterized as an account or contract right under the UCC)
and all of the Borrower’s rights in, to and under all purchase orders or receipts now owned or hereafter acquired by it
for goods or services, and all of the Borrower’s 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 the Borrower under all purchase orders and contracts for
the sale of goods or the performance of services or both by the Borrower (whether or not yet earned by performance on the part
of the Borrower or in connection with any other transaction), now in existence or hereafter 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.

 

“Account
Debtor” shall mean any party obligated to make payments under any Account including any “Account Debtor”
as defined in the UCC.

 

“ACH
Credit Party” means the Lender, as the holder of the ACH Obligations.

 

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“ACH
Obligations” means the unpaid amounts due and owing by the Borrower to the ACH Credit Party, now existing or hereafter
arising or incurred, in connection with or arising out of the ACH Credit Party’s debit or credit exposure under the ACH
Transactions made for or on behalf of the Borrower.

 

“ACH
Transactions” means Automated Clearing House transactions which involve the use of electronic credits or debits moving
funds either internally within the ACH Credit Party, to the ACH Credit Party from another financial institution, or from the ACH
Credit Party to another financial institution, all in accordance with the rules promulgated by the National Automated Clearing
House Association.

 

“Affiliate”
shall mean, as to any Person, an individual, corporation, partnership, limited liability company, joint venture, association,
company, trust, business trust, and any other entity of whatever nature, excluding IEG Holdings Limited, an Australian public
company, (a) that directly or indirectly controls, or is controlled by, or is under common control with such Person; (b) that
directly or indirectly beneficially owns or holds ten percent (10%) or more of any class of the outstanding voting stock of such
Person; or (c) ten percent (10%) or more of whose outstanding voting stock is directly or indirectly beneficially owned or held
by such Person. The term control means the possession, directly or indirectly, of the power to direct or cause the direction of
the management and policies of a Person, whether through the ownership of voting securities, by contract, or otherwise.

 

“Agreement”
shall mean this Loan and Security Agreement, as amended, supplemented, or modified from time to time and all exhibits and schedules
to this Agreement.

 

“Anti-Terrorism
Law” shall mean any and all existing or future federal, state and local statutes, ordinances, regulations,
rules, executive orders, standards and requirements, including the requirements imposed by common law, concerning or relating
to related to money laundering or financing terrorism including the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act (“PATRIOT Act”) of 2001 (Title III of Pub. L. 107-56),
The Currency and Foreign Transactions Reporting Act (also known as the “Bank Secrecy Act”, 31 U.S.C. §§
5311-5330 and 12 U.S.C. §§ 1818(s), 1820(b) and 1951-1959), the Trading With the Enemy Act (50 U.S.C. § 1 et seq.,
as amended) and Executive Order 13224 (effective September 24, 2001).

 

“Approved
Operating Agreement” shall mean the Limited Liability Company Agreement dated June 11, 2012 of and for Borrower as approved
by the Lender, in form and substance acceptable to the Lender in its sole discretion.

 

“Applicable
Percentage” shall initially equal ninety percent (90%). On or before sixty (60) days from the Closing Date, the Borrower
may elect to permanently reduce the Applicable Percentage to either eighty percent (80%) or seventy percent (70%) by sending written
notice to the Lender executed by the Borrower and received by the Lender during such period. Once the Borrower has elected to
reduce the Applicable Percentage, it may be reduced further as provided hereby but shall never be increased.

 

    	2

    	 

    

 

“Approved
Purchase Agreement” shall mean the agreement by which the Borrower purchases a Consumer Loan from its Parent, in form
and substance acceptable to the Lender in its sole discretion.

 

“Approved
Servicing Agreement” shall mean the agreement by which the Parent of Borrower services a Consumer Loan for the Borrower,
in form and substance acceptable to the Lender in its sole discretion.

 

“Authorized
Financial Officer” shall mean the vice president of finance, treasurer or chief financial officer of the Parent.

 

“Authorized
Manager” shall mean a Person appointed and authorized by the Borrower pursuant to the Approved Operating Agreement
to act as a manager or managing member of the Borrower.

 

“Availability
Period” shall mean the period commencing on the date of this Agreement and ending on the Term Conversion Date, provided
that no Event of Default shall exist or be continuing.

 

“Business
Day” shall mean any day other than a Saturday, Sunday, or other day on which commercial banks in Tampa, Florida
are authorized or required to close under the laws of the State of Florida.

 

“Capitalized
Lease” shall mean all lease obligations for any property (whether real, personal or mixed) which have been or
should be capital on the books of the lessee in accordance with GAAP.

 

“Closing
Date” or “Closing” shall mean the date of this Agreement.

 

“Code”
shall mean the Internal Revenue Code of 1986, as amended from time to time, including all regulations thereunder and all published
interpretations thereof.

 

“Collateral”
shall mean all personal and fixture property of every kind and nature, whether now existing or hereafter arising, in which the
Borrower now has or may hereafter acquire any interest, and wherever located including, without limitation: (a) all Consumer Loans;
(b) all Inventory, Equipment, Fixtures, Accounts, Chattel Paper, Instruments, Documents, real property, securities or other Investment
Property, and General Intangibles; (c) all bank or other deposit accounts owned by or maintained by or on behalf of the Borrower,
and all present and future funds on deposit in those deposit accounts; (d) all substitutes and replacements for, accessions, attachments,
and other additions to, and tools, parts, and equipment used in connection with any of the above; (e) all certificates of title
and certificates of origin or manufacturers statements of origin relating to any of the foregoing; (f) all returned or repossessed
Goods arising from or relating to any Accounts; (g) all letter-of-credit rights (whether or not the letter of credit is evidenced
by a writing); (h) all commercial tort claims, (i) any other contract rights or rights to the payment of money; (j) all insurance
claims; and (k) all Proceeds and products of any of the foregoing; (l) all recorded data of any type, including ledger sheets,
files, records, documents, and instruments (including computer programs, tapes, and related electronic data processing software)
evidencing an interest in or relating to the above. The terms Chattel Paper, Documents, Fixtures, Goods, Instruments, and Investment
Property shall have the meanings assigned to those terms in the UCC.

 

    	3

    	 

    

 

“Collection
Account” shall man that certain deposit account in the name of the Parent at Well Fargo Bank, N.A., Account No. 5076080125,
or other segregated deposit account established and maintained for the benefit of the Borrower at a federally insured depository
institution that is well capitalized and satisfactory to the Lender.

 

“Compliance
Certificate” shall mean a certificate, in form and substance satisfactory to the Lender in its sole discretion, verifying
the Maximum Loan Amount and computation thereof and incorporating the Consumer Loan Schedule.

 

“Consumer
Loan” means, as of any date, all loans originated or made by the Parent or an Affiliate of the Parent, whether or not
transferred to the Borrower pursuant to the Approved Purchase Agreement between the Borrower and the Parent, together with the
related documents for such loan. Any Consumer Loan originated by the Parent or any Affiliate that was intended to be transferred
to the Borrower which is in fact not so transferred for any reason including, without limitation, a breach of a representation
or warranty with respect thereto, shall continue to be a Consumer Loan hereunder.

 

“Consumer
Loan Debtor” shall mean an independent third Person that is the obligor under a Consumer Loan.

 

“Consumer
Loan Proceeds” means the Proceeds and any and all other amounts collected by Borrower from or relating to all Consumer
Loans.

 

“Consumer
Loan Schedule” means, as of any date, a schedule identifying the Consumer Loans for which the Borrower is the owner
and payee (as amended from time to time in accordance with the terms hereof), which schedule shall set forth for each Consumer
Loan: (a) the loan number of such Consumer Loan; (b) the name of the related Consumer Loan Debtor and the street address for the
same, including the zip code; (c) the maturity date of the Consumer Loan; (d) the original principal balance of the Consumer Loan;
(e) the outstanding principal balance of the Consumer Loan; (f) the first payment date of the Consumer Loan; (g) the status of
the Consumer Loan’s performance or delinquency, if any, and (g) the interest rate for the Consumer Loan in effect. The Consumer
Loan Schedule shall be amended to reflect the purchase of additional Consumer Loans by the Borrower as provided herein.

 

“Debt”
shall mean, without duplication, (a) all items which in accordance with GAAP would be included in determining total liabilities
as shown on the liability side of a consolidated balance sheet of the Borrower and its Subsidiaries, if any, as of the date on
which Debt is to be determined including trade debt and accruals, (b) all indebtedness secured by any Lien on any property or
asset owned or held by the Borrower and any Subsidiary whether or not the secured indebtedness shall have been assumed, (c) all
indebtedness of others with respect to which the Borrower or any Subsidiary has become liable by way of a guaranty or endorsement
(other than for collection or deposit in the ordinary course of business), (d) all contingent liabilities of the Borrower or any
Subsidiary, including but not limited to contingent liabilities in connection with outstanding letters of credit, and (e) lease
obligations that, in conformity with GAAP, have been or should be capitalized on such entity’s balance sheet.

 

    	4

    	 

    

 

“Default
Rate” shall have the meaning set forth in Section 8.3.

 

“Defaulted
Consumer Loan” means any Consumer Loan (a) as to which there has been an Event of Bankruptcy for the related Consumer
Loan Debtor, (b) which has been written off by the Borrower or has otherwise been identified by the Borrower as uncollectible,
(c) as to which any payment, or part thereof, remains unpaid for 185 days or more from the original due date for such payment,
exclusive of any advance by the Borrower or an Affiliate of the Borrower, or (d) as to which the Borrower has initiated collection
proceedings against the related Consumer Loan Debtor.

 

“Delinquent
Consumer Loan” means a Consumer Loan as to which all or any portion of a scheduled payment remains unpaid past the scheduled
due date with respect thereto, exclusive of any advance by the Borrower or an Affiliate of the Borrower.

 

“Dollars”
shall mean the lawful currency of the United States of America.

 

“Eligible
Consumer Loan Amount” means the Eligible Consumer Loan Principal Balance of a Consumer Loan held by the Borrower for
which the Borrower is the payee that satisfies the following requirements: (a) the Consumer Loan was originated by the Parent
of the Borrower in the ordinary course of the Parent’s business and in accordance with its underwriting policy, was purchased
by the Borrower pursuant to the Approved Purchase Agreement, and is serviced by the Parent pursuant to the Approved Servicing
Agreement; (b) the Consumer Loan was originated in the United States of America to a Consumer Loan Debtor domiciled in the United
States and is payable in Dollars; (c) the Consumer Loan complied on the date of its origination and now complies in all material
respects with all requirements of applicable federal, state and local laws and regulations thereunder; (d) the Consumer Loan arises
under a debt instrument executed by the related Consumer Loan Debtor, is in full force and effect and constitutes the legal, valid
and binding obligation of such Consumer Loan Debtor, enforceable against such Consumer Loan Debtor in accordance with its terms
and as to which such instrument is evidenced by no more than one original executed copy; (e) the maturity date of the Consumer
Loan has not been extended, the interest rate, margin (if applicable) and payment frequency of which have not been modified and
no other material terms of which have been waived or modified; (f) the Consumer Loan is not subject to any dispute, litigation
or counterclaim and is not subject to any defense (including the defense of usury), rescission, reduction or offset; (g) the Consumer
Loan is fully assignable without any requirement to obtain the consent of, or give notice to, the related Consumer Loan Debtor
or any other Person; (h) the term to maturity of such Consumer Loan was no more than 60 months from the origination of the Consumer
Loan; (i) the Consumer Loan is owned by the Borrower free of any title defects or any Liens, except the security interest in favor
of the Lender; (j) the related Consumer Loan Debtor for the Consumer Loan is not an officer, director or employee of the Borrower
or any Affiliate; (k) neither the Borrower nor any Affiliate of Borrower has made advances to the related Consumer Loan Debtor
for the payment of the Consumer Loan or to cure any delinquency of the Consumer Loan; and (l) the Consumer Loan is not a Defaulted
Consumer Loan.

 

    	5

    	 

    

 

“Eligible
Consumer Loan Principal Balance” means for any Consumer Loan, the outstanding principal balance of such Consumer Loan
multiplied by (a) one hundred percent (100.0%) if the payment of the Consumer Loan is current, or, (b) if such Consumer
Loan is a Delinquent Consumer Loan, then (i) one hundred percent (100%) if the Delinquent Consumer Loan is from 0 through 10 days
delinquent, (ii) ninety five percent (95%) if the Delinquent Consumer Loan is from 11 through 15 days delinquent, (iii) eighty
percent (80%) if the Delinquent Consumer Loan is from 16 through 30 days delinquent, (iv) sixty percent (60%) if the Delinquent
Consumer Loan is from 31 through 60 days delinquent, (v) forty percent (40%) if the Delinquent Consumer Loan is between from 61
through 90 days delinquent, (vi) twenty percent (20%) if the Delinquent Consumer Loan is from 91 through 120 days delinquent,
and (vii) five percent (5%) if the Delinquent Consumer Loan is from 121 through 184 days delinquent.

 

“Employee
Benefit Plan” shall mean an employee benefit plan as defined in Section 3(3) of ERISA, other than a Multiemployer
Plan, whether formal or informal and whether legally binding or not.

 

“Environmental
Laws” shall mean any and all existing or future federal, state and local statutes, ordinances, regulations, rules,
executive orders, standards and requirements, including the requirements imposed by common law, concerning or relating to industrial
hygiene and the protection of health, safety and the environment including, without limitation: (i) the Comprehensive Environmental
Response, Compensation and Liability act of 1980, as amended, 42 U.S.C. §9601 et seq. (“CERCLA”);
(ii) the Resource Conservation and Recovery Act of 1976, as amended, 42 U.S.C. §6901 et seq. (“RCRA”);
(iii) the Clean Air Act, as amended, 42 U.S.C. §7901 et seq.; (iv) the Clean Water Act, as amended, 33 U.S.C. §
1251 et seq.; (v) the Hazardous Materials Transportation Act, as amended, 49 U.S.C. §1801 et seq.; and (vi)
the Toxic Substance Control Act, 15 U.S.C. §2601 et seq., as amended (“TSCA”). Any terms mentioned herein
which are defined in any applicable Environmental Law shall have the meanings ascribed to such terms in said laws; provided, however,
that if any of such laws are amended so as to broaden any term defined therein, such broader meaning shall apply subsequent to
the effective date of such amendment.

 

“Equipment”
shall mean any “equipment” as defined in the UCC, and in any event includes all machinery, equipment, furnishings,
fixtures and vehicles, and all additions, substitutions and replacements for any of the foregoing, wherever located, together
with all attachments, components, parts, equipment and accessories installed on or affixed to the Equipment.

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as it may be amended from time to time, including regulations
thereunder and published interpretations thereof.

 

    	6

    	 

    

 

“ERISA
Affiliate” shall mean any corporation domesticated in the United States of America which is a member of the same
controlled group of corporations as the Borrower within the meaning of Section 414(b) of the Code, or any trade business which
is under common control with the Borrower within the meaning of Section 414(c) the Code.

 

“Event
of Bankruptcy” means, for any Person: (a) a proceeding shall have been instituted and remains unstayed or undismissed
for a period of 60 days in a court having jurisdiction in the premises seeking a decree or order for relief in respect of such
Person in an involuntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter in effect, or
for the appointment of a receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator or other similar official
of such Person or for all or substantially all of its property, or for the winding-up or liquidation of its affairs; or (b) the
commencement by such Person of a voluntary case under any applicable bankruptcy, insolvency or other similar law now or hereafter
in effect, or such Person’s consent to the entry of an order for relief in an involuntary case under any such law, or consent
to the appointment of or taking possession by a receiver, liquidator, assignee, trustee, custodian, sequestrator, conservator
or other similar official of such Person or for all or substantially all of its property, or any general assignment for the benefit
of creditors.

 

“Event
of Default” shall have the meaning set forth in Section 8.1.

 

“Financial
Statements” shall mean the consolidated balance sheet and statement of income and retained earnings of the Borrower
and its Parent and Subsidiaries, if any, for any applicable period together with all related statements, schedules and notes,
all in reasonable detail and stating in comparative form the respective figures for the corresponding date and period in the previous
Fiscal Year and all prepared in conformity with GAAP (subject to in the case of interim statements to normal year-end audit adjustments).

 

“Fiscal
Quarter” shall mean each fiscal quarter within Borrower’s Fiscal Year.

 

“Fiscal
Year” shall mean the calendar year.

 

“GAAP”
shall mean generally accepted accounting principles as in effect from time to time in the United States, consistently applied.

 

“General
Intangibles” shall mean “general intangibles” as defined in the UCC and includes: contract rights;
insurance refund claims; insurance claims and proceeds; tort claims and proceeds; tax refund claims and tax refunds; patents,
trademarks, trade names, service marks, copyrights and applications for any of the foregoing; licenses, permits and agreements
of any type, by which the Borrower now or hereafter uses, possesses or has authority to use or possess property of others, or
by which others now or hereafter use, possess or have authority to use or possess any of the Borrower’s property; all licenses,
permits and consents of any type; and all computer software, including source codes and documentation.

 

“Guarantor(s)”
includes Paul Mathieson and the Parent of the Borrower or any entity that may hereafter guarantee the payment or collection of,
or become accommodation parties with respect to, any portion of the Obligations.

 

    	7

    	 

    

 

“Guaranty”
shall mean, individually and collectively, the Parent Guaranty, the Mathieson Guaranty, and the IEGC Guaranty, each in a form
and substance satisfactory to the Lender in its sole discretion.

 

“Hazardous
Substance(s)” means any substance, material or waste that is or becomes designated or regulated as “toxic,”
“hazardous,” “pollutant” or “contaminant” or a similar designation or regulation under any
current or future federal, state or local Environmental Law (whether under common law, statute, regulation or otherwise) or judicial
or administrative interpretation of such, including, without limitation, petroleum or natural gas.

 

“IEGC
Guaranty” shall mean the Continuing and Unconditional Guaranty, dated of even date herewith, given by Investment Evolution
Global Corporation, a Delaware corporation, in favor of the Lender

 

“Includes”
and “including” are not limiting.

 

“Indebtedness
for Borrowed Money” shall mean (a) all indebtedness, liabilities, and obligations, now existing or hereafter
arising, for money borrowed by the Borrower or the Parent, whether or not evidenced by any note, mortgage, indenture, or agreement
(including, without limitation, the Note and any indebtedness for money borrowed from an Affiliate), and (b) all indebtedness
of others for money borrowed (including indebtedness of an Affiliate) with respect to which the Borrower, the Parent or any Affiliate
has become liable by way of any direct or indirect guaranty or indemnity.

 

“Interest
Rate” shall mean eighteen percent (18%) per annum; provided, however, in the event that the Applicable Percentage is
permanently reduced by the election of the Borrower under this Agreement, the Interest Rate shall mean (a) sixteen percent (16%)
if the Applicable Percentage is permanently reduced to eighty percent (80%) and (a) fourteen percent (14%) if the Applicable Percentage
is permanently reduced to seventy percent (70%).

 

“Inventory”
shall mean “inventory” as defined in the UCC, wherever located, now or hereafter owned or acquired by the Borrower
or in which the Borrower now holds or hereafter acquires any interest, and in any event, shall include, without limitation, all
inventory, goods and other personal property which are held by or on behalf of the Borrower for sale or lease or are furnished
or are to be furnished under a contract of service or which constitute raw materials, work in process or materials used or consumed
or to be used or consumed in the Borrower’s business, or the processing, packaging, promotion, delivery or shipping of the
same, and all furnished goods whether or not such inventory is listed on any schedules, assignments or reports furnished to the
Lender from time to time and whether or not the same is in transit or in the constructive, actual or exclusive occupancy or possession
of the Borrower or is held by the Borrower or by others for the Borrower’s account, including, without limitation, all goods
covered by purchase orders and contracts with suppliers and all goods billed and held by suppliers and all inventory which may
be located on premises of the Borrower or of any carriers, forwarding agents, truckers, warehousemen, vendors, selling agents
or other persons.

 

    	8

    	 

    

 

“Investment”
in any Person shall mean:

 

(a)
the acquisition (whether for cash, property, services or securities or otherwise) of capital stock, bonds, notes, debentures,
partnership or other ownership interests or other securities of such Person; and

 

(b)
any deposit with, or advance, loan or other extension of credit to, such Person (other than any such deposit, advance, loan or
extension of credit having a term not exceeding 120 days in the case of unaffiliated Persons and one year in the case of Affiliates
representing the purchase price of inventory or supplies purchased in the ordinary course of business) or guaranty or assumption
of, or other contingent obligation with respect to, Indebtedness for Borrowed Money or other liability of such Person; and (without
duplication of the amounts included in (a) and (b) above) any amount that may, pursuant to the terms of such investment, be required
to be paid, deposited, advanced, lent or extended to or guaranteed or assumed on behalf of such Person.

 

“Knowledge”
shall mean the actual knowledge of the Borrower or such knowledge that would have been acquired after reasonable inquiry.

 

“Lien”
shall mean any lien, mortgage, security interest, chattel mortgage, pledge or other encumbrance (statutory or otherwise) of any
kind securing satisfaction of an obligation, including any agreement to give any of the foregoing, any conditional sales or other
title retention agreement, any lease in the nature thereof, and the filing of or the agreement to give any financing statement
under the Uniform Commercial Code of any jurisdiction or similar evidence of any encumbrance, whether within or outside the United
States.

 

“Loan”
shall mean the line of credit established in favor of the Borrower in the principal amount of Three Million and No/100 Dollars
($3,000,000.00) as evidenced by the Note.

 

“Loan
Account” shall mean the deposit account of the Borrower with Wells Fargo Bank, N.A., Account No. 6097303587, or such
other account as the Borrower may designate subject to (i) the approval of the Lender in its sole discretion and (ii) execution
of a deposit account control agreement in favor of the Lender for such account.

 

“Loan
Documents” shall mean this Agreement, the Note, the Guaranty, all agreements or other instruments creating a
security interest in favor of the Lender, and each other agreement, document and instrument which now or hereafter evidence or
secure any of the Obligations (including, without limitation, all guarantees), and any amendments, modifications or substitutions
of or for the foregoing.

 

“Material
Adverse Effect” shall mean a material adverse effect with respect to (a) the business, operations, assets, or
condition (financial or otherwise) of the Borrower and its Parent or Subsidiaries, if any, taken as a whole, or (b) the validity
or enforceability of this Agreement or any of the other Loan Documents or the rights and remedies of the Lender under this Agreement
and the other Loan Documents.

 

    	9

    	 

    

 

“Mathieson
Guaranty” shall mean the Limited Guaranty, dated of even date herewith, given by Paul Mathieson in favor of the Lender

 

“Maturity
Date” shall mean June 1, 2016.

 

“Maximum
Loan Amount” means the maximum aggregate amount to be outstanding hereunder, which shall be calculated as the lesser
of (a) the Revolving Credit Limit and (b) the sum of (i) the Applicable Percentage of the aggregate Eligible Consumer Loan Amounts
for Consumer Loans set forth on the most recent Compliance Certificate delivered by the Borrower to the Lender and (ii) ninety-eight
percent (98.0%) of cash held by the Borrower up to Two Hundred Thousand and No/100 Dollars ($200,000.00), or such lesser amount
as may be advanced from time to time by the Lender hereunder.

 

“Multiemployer
Plan” shall mean a multiemployer plan as defined in ERISA Section 4001(a)(3), which covers employees of the Borrower
or any ERISA Affiliate.

 

“Note”
shall mean that certain Promissory Note in the principal amount of Three Million and No/100 Dollars ($3,000,000.00), dated of
even date herewith, executed and delivered by the Borrower to evidence the Loan, as such note may be amended, modified or supplemented
from time to time.

 

“Obligations”
shall mean all indebtedness, obligations and liabilities of the Borrower to the Lender of every kind and description, direct or
indirect, secured or unsecured, joint or several, absolute or contingent, due or to become due, including any overdrafts, whether
for payment or performance, now existing or hereafter arising, whether presently contemplated or not, regardless of how the same
arise, or by what instrument, agreement or book account they may be evidenced, or whether evidenced by any instrument, agreement
or book account, including, but not limited to, all loans (including any loan by modification, renewal or extension), all indebtedness,
including any arising from any derivative transactions, all undertakings to take or refrain from taking any action, all indebtedness,
liabilities or obligations owing from the Borrower to others which the Lender may have obtained by purchase, negotiation, discount,
assignment or otherwise; and all interest, taxes, fees, charges, expenses and attorney’s fees (whether or not such attorney
is a regularly salaried employee of the Lender, any parent corporation or any Subsidiary or Affiliate of the Lender, whether now
existing or hereafter created) chargeable to the Borrower or incurred by the Lender under this Agreement, any Loan Document or
any other document or instrument delivered in connection with this Agreement or otherwise.

 

“Outstanding
Loan Balance” means the amount of all Obligations in connection with the Loan outstanding at any given time and pursuant
to this Agreement, but excluding any interest, fees or charges not yet due.

 

“Parent”
shall mean Investment Evolution Corporation, a Delaware corporation.

 

“Parent
Guaranty” shall mean the Continuing and Unconditional Guaranty, dated of even date herewith, given by the Parent in
favor of the Lender.

 

    	10

    	 

    

 

“Pension
Plan” shall mean, at any time, any Employee Benefit Plan or a Multiemployer Plan, the funding requirements of
which (under ERISA Section 302 or Code Section 412) are, or at any time within the six (6) years immediately preceding the time
in question, were in whole or in part, the responsibility of the Borrower or any ERISA Affiliate.

 

“Permitted
Liens” shall mean:

 

(1)
any Liens for current taxes, assessments and other governmental charges not yet due and payable or being contested in good faith
by the Borrower or any Subsidiary by appropriate proceedings and for which adequate reserves have been established by the Borrower
or the Subsidiary as reflected in the Borrower’s or the Subsidiary’s Financial Statements;

 

(2)
any mechanic’s, materialman’s, carrier’s, warehousemen’s or similar Lien for sums not yet due or being
contested in good faith by the Borrower by appropriate proceedings and for which adequate reserves have been established by the
Borrower or the Subsidiary as reflected in the Borrower’s or the Subsidiary’s Financial Statements;

 

(3)
easements, rights-of-way, restrictions and other similar encumbrances on the real property or fixtures of the Borrower incurred
in the ordinary course of business which individually or in the aggregate are not substantial in amount and which do not in any
case materially detract from the value or marketability of the subject property or interfere with the ordinary conduct of the
business of the Borrower or the Subsidiary;

 

(4)
any Lien (other than a Lien imposed on any property of the Borrower or any ERISA Affiliate pursuant to ERISA or section 412 of
the Code) incurred in the ordinary course of business, including any Lien in connection with workers’ compensation, unemployment
insurance and other types of social security and any Lien to secure performance of tenders, statutory obligations, surety and
appeal bonds (in the case of appeal bonds the Lien shall not secure any reimbursement or indemnity obligation in an amount greater
than Ten Thousand Dollars ($10,000.00)), bids, leases that are not Capitalized Leases, performance bonds, sales contracts and
other similar obligations, in each case, not incurred in connection with the obtaining of credit or the payment of a deferred
purchase price, and which do not, in the aggregate, result in a Material Adverse Effect; and

 

(5)
any Lien existing on the date of this Agreement and set forth in Schedule 4.13.

 

“Person”
shall mean any individual, corporation, partnership, limited liability company, joint venture, association, company, trust, business
trust, entity, and any other entity of whatever nature, government, governmental agency or political subdivision.

 

“Potential
Default” shall mean an event, condition or circumstance that with the giving of notice or lapse of time or both
would become an Event of Default.

 

    	11

    	 

    

 

“Proceeds”
shall mean all cash and non-cash “proceeds” as defined in the UCC, and includes (a) proceeds of any insurance, indemnity,
warranty or guaranty payable to the Lender or the Borrower from time to time with respect to any Collateral, (b) payments in any
form made or due and payable to the Lender or the Borrower in connection with any requisition, confiscation, condemnation, seizure
or forfeiture of any Collateral or any Proceeds of any Collateral, and (c) all other amounts paid or payable under or in connection
with any Collateral.

 

“Profit
Sharing Agreement” shall mean an agreement between the Lender, the Borrower and the Parent, in form and substance
satisfactory to the Lender and secured by the assets of the Borrower, providing, among other things, that (i) 20% of the net profits
of the Borrower are paid to the Lender, unless a Refinance Event has occurred, whereupon 10% of the net profits of the Borrower
are paid to the Lender provided that the Borrower may terminate such profit sharing with a payment of Five Hundred Thousand and
No/100 Dollars ($500,000.00) within one (1) year from the Closing Date, a payment of One Million Five Hundred Thousand and No/100
Dollars ($1,500,000.00) between the end of the first year and end of the second year following the Closing Date, and a payment
of Three Million and No/100 Dollars ($3,000,000.00) thereafter, and (ii) the Lender shall have the right participate in any debt
or equity raised by the Borrower, the Parent or any Affiliate thereof with such right expiring one (1) year after repayment in
full of the Loan.

 

“Prohibited
Transaction” shall mean a transaction that is prohibited under Code Section 75 or ERISA Section 406 and not exempt
under Code Section 4975 or ERISA Section 408.

 

“Refinance
Event” means prior to the Term Conversion Date, the Borrower obtaining a senior credit facility from a lender, with
terms and conditions acceptable to the Lender in its sole direction, in an amount equal to or exceeding Five Million and No/100
Dollars ($5,000,000.00) that repays and modifies the Loan to permanently reduce the Revolving Credit Limit to One Million Five
Hundred Thousand and No/100 Dollars ($1,500,000.00) or less and sets the Interest Rate to no less than eighteen (18%) percent.

 

“Regulation”
shall mean any statute, law, ordinance, regulation, order or rule of the United States or any foreign, state, local, or other
government or governmental body, including, without limitation, those covering or related to banking, financial transactions,
public utilities, environmental control, energy, safety, health, transportation, bribery, record keeping, zoning, antidiscrimination,
antitrust, wages and hours, employee benefits, and price and wage control matters.

 

“Reportable
Event” shall mean, with respect to a Pension Plan: (a) any of the events set forth in ERISA Sections 4043(b)
or 4063(a) or the regulations thereunder; (b) an event requiring the Borrower, any Subsidiary or any ERISA Affiliate to provide
security to a Pension Plan under Code Section 401(a)(29); and (c) any failure by the Borrower, any Subsidiary or any ERISA Affiliate
to make payments required by Code Section 412(m).

 

“Revolving
Credit Limit” shall mean Three Million and No/100 Dollars ($3,000,000.00).

 

    	12

    	 

    

 

“Solvent”
shall mean, with respect to any Person that the aggregate present fair saleable value of the Person’s assets is in excess
of the total amount of its probable liability on its existing debts as they become absolute and matured, the Person has not incurred
debts beyond its foreseeable ability to pay the debts as they mature, and the Person has capital adequate to conduct the business
it is presently engaged in or is about to engage in.

 

“Subsidiary”
shall mean a corporation or other entity the shares of stock or other equity interests of which having ordinary voting power (other
than stock having voting power only by reason of the happening of a contingency) to elect a majority of the board of directors
or other managers of the corporation or other entity are at the time owned, or the management of which is otherwise controlled,
directly or indirectly through one or more intermediaries or both, by the Borrower, the Parent or any Affiliate.

 

“Taxes”
shall have the meaning set forth in Section 9.8 of this Agreement.

 

“Termination
Event” shall mean, with respect to a Pension Plan: (a) a Reportable Event; (b) the termination of a Pension Plan,
or the filing of a notice of intent to terminate a Pension Plan, or the treatment of a Pension Plan amendment as a termination
under ERISA Section 4041(c); (c) the institution of proceedings to terminate a Pension Plan under ERISA Section 4042; or (d) the
appointment of a trustee to administer any Pension Plan under ERISA Section 4042.

 

“Term
Conversion Date” shall mean December 1, 2013.

 

“UCC”
shall mean the Uniform Commercial Code as in effect on the date of this Agreement in the State of Florida.

 

1.2
Accounting Terms. All accounting terms not specifically defined in this Agreement shall be construed in accordance
with GAAP and all financial data submitted pursuant to this Agreement shall be prepared in accordance with GAAP.

 

2.
THE REVOLVING LINE OF CREDIT.

 

2.1
The Revolving Line of Credit.

 

(a)
Subject to the terms and conditions of this Agreement and in reliance upon the representations, warranties and covenants contained
in this Agreement, the Lender agrees to provide a line of credit to the Borrower in an amount equal to the Maximum Loan Amount
during the Availability Period. The Loan shall be evidenced by the Note, which Borrower shall execute and deliver to the Lender
at Closing. All advances to Borrower by the Lender under the Note shall be made by the Lender by deposit to the Loan Account.

 

(b)
The proceeds from the Loan shall be used to finance Borrower’s purchase of Consumer Loans from its Parent pursuant to and
in accordance with the terms of the Approved Purchase Agreement; provided, however, proceeds from the Loan may be distributed
by the Borrower to the Parent for payment of operating costs so long as (i) such distribution shall not cause the Outstanding Loan
Balance to exceed the Maximum Loan Amount and (ii) no Event of Default has occurred under the Loan Documents or will occur based
on such distribution. The proceeds of the Loan shall not be used for any acquisition, consolidation, merger, reorganization or
similar type of transaction with any Person without the Lender’s prior written consent.

 

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2.2
Availability Period. Provided that no Event of Default shall exist or be continuing, during the Availability Period,
and upon five (5) Business Days’ prior written notice to the Lender, proceeds may be disbursed by the Lender to the Borrower
under the Note, repaid by the Borrower, and, upon five (5) Business Days’ prior written notice to the Lender, re-borrowed
by the Borrower under the Note until the Term Conversion Date; provided, however, that the Borrower shall not be entitled
to borrow under the Note, and the Lender shall not be obligated to advance funds to the Borrower, more than one (1) time per thirty
(30) day period and unless the Borrower has delivered a Compliance Certificate to the Lender within five (5) days prior to such
advance. All advances under this Agreement shall be a minimum amount of Twenty Five Thousand and No/100 Dollars ($25,000.00) and
not more than Two Hundred Fifty Thousand and No/100 Dollars ($250,000.00).

 

2.3
Conversion to Term Loan. Unless this Agreement shall be terminated sooner as provided herein, the line of credit shall
automatically convert to a term loan on the Term Conversion Date pursuant to the terms of the Note.

 

2.4
Interest.

 

(a)
Interest shall accrue on the outstanding principal balance of the Loan at the Interest Rate, calculated on the basis of actual
number of days elapsed in a year of 360 days.

 

(b)
The Borrower shall not be obligated to pay and the Lender shall not collect interest on any Obligations at a rate in excess of
the maximum permitted by law or the maximum that will not subject Lender to any civil or criminal penalties. If, because of the
acceleration of maturity, the payment of interest in advance or any other reason, Borrower is required, under the provisions of
any Loan Document or otherwise, to pay interest at a rate in excess of such maximum rate, the rate of interest under such provisions
shall immediately and automatically be reduced to such maximum rate, and any payment made in excess of such maximum rate, together
with interest thereon at the rate provided herein from the date of such payment, shall be immediately and automatically applied
to the reduction of the unpaid principal balance of the Obligations as of the date on which such excess payment was made. If the
amount to be so applied to reduction of the unpaid principal balance exceeds the unpaid principal balance, the amount of such
excess shall be refunded by the Lender to the Borrower.

 

2.5
Payment. The Borrower shall repay the Loan as follows:

 

(a)
Commencing on July 1, 2012, and continuing on the same day of each and every calendar month thereafter through and including the
month in which the Term Conversion Date occurs, payments of accrued and unpaid interest on the then outstanding principal balance
of the Loan shall be due and payable in full.

 

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(b)
Commencing on January 1, 2014 and continuing on the same day of each and every calendar month thereafter through and including
the month in which the Maturity Date occurs, payments of one hundred percent (100%) of the Consumer Loan Proceeds shall be applied
to accrued and unpaid interest and the outstanding principal balance of the Loan.

 

(c)
On the Maturity Date, the Borrower shall pay the outstanding principal and interest balance of the Loan, together with any costs,
fees and expenses, without the need for future notice or demand.

 

2.6
ACH Transactions. The Borrower hereby irrevocably authorizes the Lender, in its sole and exclusive discretion, to debit
via ACH Transaction from the Loan Account any amount due and payable hereunder or under any other Loan Document. The Borrower
acknowledges that any notice requirement to effect an ACH Transaction is satisfied by the Borrower’s notice of the time
periods set forth in this Agreement, including, without limitation, those set forth in Section 2.5, except that if no Event of
Default has occurred, the Lender shall provide the Borrower three (3) days notice prior to an ACH Transaction. All payments shall
be applied to the Obligations in such manner as the Lender determines in its sole and absolute discretion. All payments constituting
proceeds of the Collateral and other payments received by the Lender will be immediately applied to the repayment of the Obligations
then due (such credit being provisional until the Lender’s receipt of collected funds); provided that, in the event
of any delay in the processing and/or receipt by the Lender of such payment, interest shall continue to accrue until the Lender’s
actual receipt of such funds. The Borrower further agrees to execute such other agreements and authorizations that the Lender
may request from time to time to allow the Lender to exercise its rights under this Section 2.6.

 

2.7
Payment on Non-Business Days. Whenever any payment due the Lender hereunder or under any other Loan Document shall
be stated to be due on a day other than a Business Day, such payment shall be made by the Borrower (or withdrawn from the Loan
Account in the Lender’s sole and exclusive discretion) on the next succeeding Business Day, and such extension of time shall
in such case be included in the computation of payment of interest.

 

2.8
Overadvance. If at any time the Outstanding Loan Balance shall exceed the Maximum Loan Amount, the Borrower shall,
without demand or notice, immediately pay to the Lender such amount as may be necessary to eliminate such excess.

 

2.9
Loan Prepayments. The Outstanding Loan Balance may be prepaid in whole or in part at any time without penalty.

 

2.10
Refinance Event. Upon the occurrence of a Refinance Event, and provided an Event of Default has not occurred, the Lender
agrees to subordinate its security interest in the Loans to the senior lender and modify the maturity date of the Loan to match
the maturity date of the senior facility on the condition that (a) such facility allows for the Borrower to make regular monthly
payments of accrued interest to the Lender, and (b) this Agreement shall be amended to provide, among other things, that it shall
constitute an Event of Default if the total of the remaining principal amount of the Loan together with the outstanding amount
of such facility exceeds ninety-five percent (95.0%) of all Eligible Consumer Loan Amounts.

 

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2.11
Fees.

 

(a)
Draw Fee. The Borrower agrees to pay the Lender a draw fee equal to one percent (1.0%) of the amount of any advance
of funds under this Agreement.

 

(b)
Field Exam Costs. The Borrower agrees to reimburse the Lender for the cost of periodic field examinations of the
Borrower’s books, records and the Collateral, at such intervals as the Lender may require, not to exceed an annual cost
of Five Thousand and No/100 Dollars ($5,000.00). The actions described in this paragraph may be performed by employees of the
Lender or by independent agents or reviewers.

 

(c)
Late Fee. In the event that any payment of principal and/or interest due to the Lender is not received by the Lender
on or before the tenth (10th) day after its due date, the Borrower shall pay to the Lender, immediately, without notice or demand,
a late charge in an amount equal to the greater of Two-Thousand Five Hundred and No/100 Dollars ($2,500.00) or one-tenth (1/10th)
of one percent (1%) of the unpaid principal balance as of the date the late charge is assessed for the purpose of defraying the
costs incident to the processing and handling of the delinquent payment. The provision for such late charge shall not be construed
to permit the Borrower to make any payment after its due date, obligate the lender to accept any overdue installment, or affect
the Lender’s rights and remedies upon the occurrence of an Event of Default.

 

2.12
Documentary Stamp Tax. The Borrower agrees to defend, indemnify and hold the Lender harmless from and against any and
all liability for documentary excise taxes and intangible taxes (together with all interest, penalties, costs and reasonable attorneys’
fees incurred in connection therewith) that at any time may be levied, assessed or imposed by the State of Florida or any other
governmental authority (a) upon the Note, this Agreement or any of the other Loan Documents, (b) upon any amendment, extension
or renewal of any of the foregoing, or (c) upon the Lender by virtue of owning or holding any of the foregoing documents or instruments;
all of which shall be secured by the security interest or other Lien granted by this Agreement. The provisions of this section
survive the repayment of the Note and the termination of this Agreement or any of the other Loan Documents for so long as any
claim may be asserted by the State of Florida or any other governmental authority.

 

3.
COLLATERAL.

 

3.1
Collateral. As security for the payment of the Obligations and the satisfaction by the Borrower of all covenants
and undertakings contained in this Agreement and the other Loan Documents, the Borrower hereby pledges, assigns and grants to
the Lender, a continuing first priority lien on and security interest in, the Collateral.

 

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3.2
Authorization to File Financing Statements. The Borrower hereby irrevocably authorizes the Lender at any time
and from time to time to file in any filing office in any Uniform Commercial Code jurisdiction any initial financing statements
and amendments thereto that (a) indicate the Collateral (i) as all assets of the Borrower or words of similar effect, regardless
of whether any particular asset comprised in the Collateral falls within the scope of Article 9 of the Uniform Commercial Code
of the State of Florida or such jurisdiction, or (ii) as being of an equal or lesser scope or with greater detail, and (b) provide
any other information required by part 5 of Article 9 of the Uniform Commercial Code of the State, or such other jurisdiction,
for the sufficiency or filing office acceptance of any financing statement or amendment, including (i) whether the Borrower
is an organization, the type of organization and any organizational identification number issued to the Borrower, and (ii) in
the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber to be
cut, a sufficient description of the real property to which the Collateral relates. The Borrower agrees to furnish any such information
to the Lender promptly upon the Lender’s request.

 

3.3
Other Actions. To further the attachment, perfection and first priority of, and the ability of the Lender to
enforce, the Lender’s security interest in the Collateral, and without limitation on the Borrower’s other obligations
in this Agreement, the Borrower agrees, in each case at the Borrower’s expense, to take the following actions with respect
to the following Collateral:

 

(a)
Promissory Notes and Tangible Chattel Paper. If the Borrower shall at any time hold or acquire any promissory
notes in excess of Ten Thousand Dollars and No/100 ($10,000.00) or tangible chattel paper, the Borrower shall forthwith endorse,
assign and deliver the same to the Lender, accompanied by such instruments of transfer or assignment duly executed in blank as
the Lender may from time to time specify.

 

(b)
Deposit Accounts. For each deposit account that the Borrower at any time opens or maintains, the Borrower
shall, at the Lender’s request and option, pursuant to an agreement in form and substance satisfactory to the Lender, either
(i) cause the depository bank to comply at any time with instructions from the Lender to such depository bank directing the disposition
of funds from time to time credited to such deposit account, without further consent of the Borrower, or (ii) arrange for the
Lender to become the customer of the depository bank with respect to the deposit account, with the Borrower being permitted, only
with the consent of the Lender, to exercise rights to withdraw funds from such deposit account. The provisions of this paragraph
shall not apply to (A) any deposit account for which the Borrower, the depository bank and the Lender have entered into a cash
collateral agreement specially negotiated among the Borrower, the depository bank and the Lender for the specific purpose set
forth therein, (B) a deposit account for which the Lender is the depository bank and is in automatic control, and (C) deposit
accounts specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the
benefit of the Borrower’s salaried employees.

 

(c)
Investment Property. If the Borrower shall at any time hold or acquire any certificated securities, the Borrower
shall forthwith endorse, assign and deliver the same to the Lender, accompanied by such instruments of transfer or assignment
duly executed in blank as the Lender may from time to time specify. If any securities now or hereafter acquired by the Borrower
are uncertificated and are issued to the Borrower or its nominee directly by the issuer thereof, the Borrower shall immediately
notify the Lender thereof and, at the Lender’s request and option, pursuant to an agreement in form and substance satisfactory
to the Lender, either (1) cause the issuer to agree to comply with instructions from the Lender as to such securities, without
further consent of the Borrower or such nominee, or (2) arrange for the Lender to become the registered owner of the securities.
If any securities, whether certificated or uncertificated, or other investment property now or hereafter acquired by the Borrower
are held by the Borrower or its nominee through a securities intermediary or commodity intermediary, the Borrower shall immediately
notify the Lender thereof and, at the Lender’s request and option, pursuant to an agreement in form and substance satisfactory
to the Lender, either (i) cause such securities intermediary or (as the case may be) commodity intermediary to agree to comply
with entitlement orders or other instructions from the Lender to such securities intermediary as to such securities or other investment
property, or (as the case may be) to apply any value distributed on account of any commodity contract as directed by the Lender
to such commodity intermediary, in each case without further consent of the Borrower or such nominee, or (ii) in the case of financial
assets or other investment property held through a securities intermediary, arrange for the Lender to become the entitlement holder
with respect to such investment property, with the Borrower being permitted, only with the consent of the Lender, to exercise
rights to withdraw or otherwise deal with such investment property. The provisions of this paragraph shall not apply to any financial
assets credited to a securities account for which the Lender is the securities intermediary.

 

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(d)
Collateral in the Possession of a Bailee. If any Collateral is at any time in the possession of a bailee,
the Borrower shall promptly notify the Lender thereof and, at the Lender’s request and option, shall promptly obtain an
acknowledgement from the bailee, in form and substance satisfactory to the Lender, that the bailee holds such Collateral for the
benefit of the Lender, and that such bailee agrees to comply, without further consent of the Borrower, with instructions from
the Lender as to such Collateral.

 

(e)
Electronic Chattel Paper and Transferable Records. If the Borrower at any time holds or acquires an interest
in any electronic chattel paper or any “transferable record,” as that term is defined in Section 201 of the federal
Electronic Signatures in Global and National Commerce Act, or in Section 16 of the Uniform Electronic Transactions Act as in effect
in any relevant jurisdiction, the Borrower shall promptly notify the Lender thereof and, at the request and option of the Lender,
shall take such action as the Lender may reasonably request to vest in the Lender control, under Section 9-105 of the Uniform
Commercial Code, of such electronic chattel paper or control under Section 201 of the federal Electronic Signatures in Global
and National Commerce Act or, as the case may be, Section 16 of the Uniform Electronic Transactions Act, as so in effect in such
jurisdiction, of such transferable record.

 

(f)
Letter-of-Credit Rights. If the Borrower is at any time a beneficiary under a letter of credit, the Borrower
shall promptly notify the Lender thereof and, at the request and option of the Lender, the Borrower shall, pursuant to an agreement
in form and substance satisfactory to the Lender, either (1) arrange for the issuer and any confirmer or other nominated person
of such letter of credit to consent to an assignment to the Lender of the proceeds of the letter of credit, or (2) arrange for
the Lender to become the transferee beneficiary of the letter of credit, with the Lender agreeing, in each case, that the proceeds
of the letter to credit are to be applied as provided in this Agreement.

 

(g)
Commercial Tort Claims. If the Borrower shall at any time hold or acquire a commercial tort claim, the Borrower
shall immediately notify the Lender in a writing signed by the Borrower of the particulars thereof and grant to the Lender in
such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing
to be in form and substance satisfactory to the Lender.

 

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(h)
Other Actions as to Any and All Collateral. The Borrower further agrees, at the request and option of the
Lender, to take any and all other actions the Lender may determine to be reasonably necessary or useful for the attachment, perfection
and first priority of, and the ability of the Lender to enforce, the Lender’s security interest in any and all of the Collateral,
including, without limitation, (1) executing, delivering and, where appropriate, filing financing statements and amendments relating
thereto under the Uniform Commercial Code, to the extent, if any, that the Borrower’s signature thereon is required therefor,
(2) causing the Lender’s name to be noted as Lender on any certificate of title for a titled good if such notation is a
condition to attachment, perfection or priority of, or ability of the Lender to enforce, the Lender’s security interest
in such Collateral, (3) complying with any provision of any statute, regulation or treaty of the United States as to any Collateral
if compliance with such provision is a condition to attachment, perfection or priority of, or ability of the Lender to enforce,
the Lender’s security interest in such Collateral, (4) obtaining governmental and other third party waivers, consents and
approvals in form and substance satisfactory to Lender, including, without limitation, any consent of any licensor, lessor or
other person obligated on Collateral, (5) obtaining waivers from mortgagees and landlords in form and substance satisfactory to
the Lender, and (6) taking all actions under any earlier versions of the Uniform Commercial Code or under any other law, as reasonably
determined by the Lender to be applicable in any relevant Uniform Commercial Code or other jurisdiction, including any foreign
jurisdiction.

 

(i)
Filing Security Agreement. A carbon, photographic or other reproduction or other copy of this Agreement or
of a financing statement is sufficient as and may be filed in lieu of a financing statement.

 

3.4
Power of Attorney.

 

(a)
Appointment and Powers of Lender. The Borrower hereby irrevocably constitutes and appoints the Lender and
any officer or agent thereof, with full power of substitution, as its true and lawful attorneys-in-fact with full irrevocable
power and authority in the place and stead of the Borrower or in the Lender’s own name, without notice to or assent by the
Borrower, to do the following:

 

(i)
upon the occurrence and during the continuance of an Event of Default, generally to sell, transfer, pledge, make any agreement
with respect to or otherwise dispose of or deal with any of the Collateral in such manner as is consistent with the Uniform Commercial
Code of Florida and as fully and completely as though the Lender were the absolute owner thereof for all purposes, and to do,
at the Borrower’s expense, at any time, or from time to time, all acts and things which the Lender deems necessary or useful
to protect, preserve or realize upon the Collateral and the Lender’s security interest therein, in order to effect the intent
of this Agreement, all at least as fully and effectively as the Borrower might do, including, without limitation, (A) the filing
and prosecuting of registration and transfer applications with the appropriate federal, state, local or other agencies or authorities
with respect to trademarks, copyrights and patentable inventions and processes, (B) upon written notice to the Borrower, the exercise
of voting rights with respect to voting securities, which rights may be exercised, if the Lender so elects, with a view to causing
the liquidation of assets of the issuer of any such securities, and (C) the execution, delivery and recording, in connection with
any sale or other disposition of any Collateral, of the endorsements, assignments or other instruments of conveyance or transfer
with respect to such Collateral; and

 

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(ii)
to the extent that the Borrower’s authorization given in Section 3.2 is not sufficient, to file such financing statements
with respect hereto, with or without the Borrower’s signature, or a photocopy of this Agreement in substitution for a financing
statement, as the Lender may deem appropriate and to execute in the Borrower’s name such financing statements and amendments
thereto and continuation statements which may require the Borrower’s signature.

 

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

 

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

 

4.
REPRESENTATIONS AND WARRANTIES.

 

To
induce the Lender to enter into this Agreement, the Borrower represents and warrants to the Lender as follows:

 

4.1
Organization and Qualification. The Borrower is duly formed, validly existing and in good standing as a limited
liability company under the laws of the State of Delaware, and is duly qualified as a limited liability company and in good standing
under the laws of each jurisdiction in which the conduct of its business or the ownership of its assets requires such qualification.

 

4.2
Authority and Authorization. Each of the Borrower and the Parent has corporate power and authority to execute,
deliver and perform under the Loan Documents to which it is a party, to make the borrowings provided for in this Agreement, and
to perform its obligations under the Loan Documents, and all such action has been duly and validly authorized by all necessary
corporate action on its part. No consent of any other party (including stockholders of the Borrower and the Parent) and no consent,
license, approval or authorization of, or registration or declaration with, any governmental authority, bureau or agency is required
in connection with the execution, delivery, performance, validity or enforceability of the Loan Documents.

 

4.3
Execution and Binding Effect. The Loan Documents to which the Borrower or the Parent is a party have been duly
and validly executed and delivered by the Borrower and the Parent, as applicable, and constitute legal, valid and binding obligations
of the Borrower or the Parent, enforceable in accordance with their terms, except as enforceability may be limited by bankruptcy,
insolvency or other similar laws of general application affecting the enforcement of creditors’ rights. Each Guaranty has
been duly and validly executed and delivered by the Guarantors and constitutes the legal, valid and binding obligation of the
Guarantors, enforceable in accordance with their terms, except as enforceability may be limited by bankruptcy, insolvency or other
similar laws of general application affecting the enforcement of creditors’ rights.

 

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4.4
Litigation. There are no judgments, actions, suits or proceedings pending or, to the Borrower’s knowledge,
threatened against or affecting the Borrower or the Parent or any assets of the Borrower or the Parent before any court, governmental
agency or other tribunal which if adversely determined reasonably could have a Material Adverse Effect or affect the ability of
the Borrower or the Parent to perform under the Loan Documents.

 

4.5
Conflict with Other Instruments. The execution and delivery of, and performance under, the Loan Documents will
not violate or contravene any provision of any existing law or regulation or decree of any court, governmental authority, bureau
or agency having jurisdiction over the Borrower or the Parent or of any mortgage, indenture, security agreement, contract, undertaking
or other agreement to which the Borrower or the Parent is a party or which purports to be binding upon it or any of its properties
or assets, and will not result in the creation or imposition of any Lien, charge, encumbrance on, or security interest in, any
of its properties or assets pursuant to the provisions of any such mortgage, indenture, security agreement, contract, undertaking
or other agreement.

 

4.6
Not in Default; Judgments, Etc. No Event of Default or Potential Default under any Loan Document has occurred
and is continuing. Each of the Borrower and the Parent has satisfied all judgments and neither the Borrower nor the Parent is
in default under or in violation of any material existing agreement or any judgment, writ, injunction, decree, rule, or regulation
of any court, arbitrator, or federal, state, municipal, or other governmental authority, commission, board bureau, agency, or
instrumentality, domestic or foreign.

 

4.7
Permits, Licenses, Etc. Each of the Borrower and the Parent possesses all permits, licenses, franchises, trademarks,
trade names, copyrights and patents necessary to the conduct of its business as presently conducted or as presently proposed to
be conducted without conflict to the rights of others. Each of the Borrower and the Parent owns or has a valid right to use the
patents, patent rights, permits, licenses, trade secrets, trademarks, trademark rights, trade names or trade name rights or franchises,
copyrights, inventions, and intellectual property rights being used to conduct its business as now operated and as now contemplated
to be operated (a complete list of which rights is attached hereto as Schedule 4.7); and the conduct of the business
of the Borrower and the Parent as now operated and as now proposed to be operated does not and will not conflict with valid patents,
patent rights, permits, licenses, trade secrets, trademarks, trademark rights, trade names or trade name rights or franchises,
copyrights, inventions, and intellectual property rights of others. No claim is pending or threatened to the effect that any such
intellectual property owned or licensed by the Borrower or the Parent or which the Borrower or the Parent otherwise has the right
to use, is invalid or unenforceable by the Borrower or the Parent, as the case may be. Each of the Borrower and the Parent does
not have any obligation to compensate any Person for the use of any such patents or rights, and no Person has been granted any
license or other rights to use in any manner any of the patents or rights of the Borrower or the Parent, whether requiring the
payment of royalties or not.

 

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4.8
Labor. Each of the Borrower and the Parent is not involved in any strike, lock-out, boycott or any other
labor trouble, similar or dissimilar, nor is it involved in labor negotiations.

 

4.9
Fictitious Names. Each of the Borrower and the Parent does not operate or do business, and has not operated
or done business during the five (5) year period immediately preceding the Closing Date, under any assumed, trade or fictitious
names except for the fictious name “Mr. Amazing Loans”.

 

4.10
Compliance with Laws.

 

(a)
Compliance. Each of the Borrower and the Parent is in compliance in all material respects with all
Regulations applicable to its business (including obtaining all authorizations, consents, approvals, orders, licenses, exemptions
from, and making all filings or registrations or qualifications with, any court or governmental department, public body or authority,
commission, board, bureau, agency, or instrumentality), the noncompliance with which reasonably could have a Material Adverse
Effect.

 

(b)
Hazardous Wastes, Substances and Petroleum Products.

 

(i)
Each of the Borrower and the Parent (A) has received all permits and filed all notifications necessary to carry on its
business, and (B) is in compliance in all respects with all Environmental Laws.

 

(ii)
Neither the Borrower nor the Parent has given any written or oral notice, nor has either failed to give required notice, to the
Environmental Protection Agency (“EPA”) or any state or local agency with regard to any actual or imminently
threatened release of Hazardous Substances on properties owned, leased or operated by the Borrower or the Parent or used in connection
with the conduct of their business and operations.

 

(iii)
Neither the Borrower nor the Parent has received notice that it is potentially responsible for costs of clean-up or remediation
of any actual or imminently threatened release of Hazardous Substances pursuant to any Environmental Laws.

 

(iv)
No real property owned or leased by the Borrower or the Parent is in violation of any Environmental Laws, no Hazardous Materials
are present on said real property and neither the Borrower nor the Parent has been identified in any litigation, administrative
proceedings or investigation as a responsible party for any liability under any Environmental Laws.

 

(c)
Anti-Terrorism Laws.

 

(i)
Each of the Borrower and the Parent (or any Affiliate thereof) is not in violation of any Anti-Terrorism Law or engages
in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to
violate, any of the prohibitions set forth in any Anti-Terrorism Law.

 

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(ii)
Each of the Borrower and the Parent (or any Affiliate thereof), or to such entity’s knowledge, any of its agents
acting or benefiting in any capacity in connection with the Loan or other transactions under this Agreement, is any of the following
(each a “Blocked Person”): (A) a Person that is listed in the annex to, or is otherwise subject to the provisions
of, the Executive Order No. 13224; (B) a Person owned or controlled by, or acting for or on behalf of, any Person that is listed
in the annex to, or is otherwise subject to the provisions of, the Executive Order No. 13224; (C) a Person with which the Lender
is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism Law; (D) a Person that commits, threatens
or conspires to commit or supports “terrorism” as defined in the Executive Order No. 13224; (E) a Person that is named
as a “specially designated national” on the most current list published by the U.S. Treasury Department Office of
Foreign Asset Control at its official website or any replacement website or other replacement official publication of such list;
or (F) a Person who is affiliated with a Person listed above.

 

(iii)
Neither the making of the Loan hereunder nor the use of the proceeds thereof will violate the PATRIOT Act, the Trading with the
Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. The Borrower is in compliance in all
material respects with the PATRIOT Act.

 

4.11
Solvency. The Borrower and the Parent (on a consolidated basis), is and after giving effect to the transactions
contemplated by this Agreement, will be, Solvent.

 

4.12
No Burdensome Agreements. Neither the Borrower nor the Parent is a party to or bound by any agreement or instrument
or subject to any corporate or other restriction, the performance or observance of which now has or, as far as the Borrower or
the Parent can reasonably foresee, may have a Material Adverse Effect.

 

4.13
Title; Liens. Except as otherwise disclosed in Schedule 4.13, the Borrower has good and marketable
title to and indefeasible ownership interests in, all of its property and assets, free and clear of any Lien. Schedule 4.13
sets forth and describes in reasonable detail each Lien in existence with regard to the property and assets of the Borrower.
The Borrower will defend its property and assets against all claims and demands of any Person at any time claiming an interest
in any of the Borrower’s property and assets. All Inventory is and shall at all times be of good and merchantable quality,
free from all defects, and all other Collateral is and shall remain in good working order and repair. No Collateral is affixed
to real estate, or an accession to other goods or part of a product or mass.

 

4.14
Disclosure Generally. The written representations and statements made by or on behalf of each of the
Borrower and the Parent in connection with this Agreement, including representations and statements in each of the Loan Documents,
do not contain any untrue statement of a material fact or omit to state a material fact or any fact necessary to make the representations
made not materially misleading. No written information, exhibit, report or financial statement furnished each of the Borrower
and the Parent to the Lender in connection with this Agreement, or any other Loan Document, contains any material misstatement
of fact or omits to state a material fact or any fact necessary to make the statements contained therein not materially misleading.

 

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4.15
Account Debtors. All Account Debtors are, to the extent permitted by law, precluded from asserting against the
Lender any claims or defenses they have against sellers. No Account Debtor is a governmental authority subject to the Federal
Assignment of Claims Act.

 

4.16
Collateral. (a) The Borrower is the owner of the Collateral, free from any right or claim or any person or any
adverse lien, security interest or other encumbrance, except for the security interest created by this Agreement, (b) none of
the Collateral constitutes, or is the proceeds of, “farm products” as defined in Section 9102(a)(34) of the UCC, (c)
none of the Account Debtors or other persons obligated on any of the Collateral is a governmental authority covered by the Federal
Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral, (d) the Borrower holds
no commercial tort claims, and (e) the Borrower has at all times operated its business in compliance with all applicable provisions
of the federal Fair Labor Standards Act, as amended, and 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.

 

4.17
Advances. Each request for a Loan advance under this Agreement, without a further writing of any kind, constitutes
(a) an affirmation by Borrower that all of the representations and warranties of Borrower in this Section 4 remain true and correct
as of the date thereof and, unless the Lender is notified in writing to the contrary prior to the disbursement of the requested
Loan advance, will be true and correct on the date thereof, and (b) a representation and warranty that the information set forth
in each such request in accordance with the requirements of this Agreement is true and correct.

 

5.
CONDITIONS PRECEDENT.

 

5.1
Conditions to Disbursement. The following conditions precedent shall be completely satisfied prior to the first advance
of Loan proceeds and any subsequent advance under this Agreement, which conditions precedent inure solely to the benefit of and
may be waived only in writing by the Lender:

 

(a)
Certificate of Formation; Limited Liability Company. The Lender shall have received copies of the Managing
Member’s Certificate of the Borrower, together with a Certificate of Good Standing from any jurisdiction where the nature
of its business or the ownership of its assets requires such qualification except where the failure to be so qualified would not
have a Material Adverse Effect and any certificates of incorporation, by-laws and other corporate documents from the Parent and
any Affiliate as Lender shall reasonably require. The Managing Member’s Certificate shall contain copies of the Certificate
of Formation of the Borrower and the Limited Liability Agreement of the Borrower.

 

(b)
Evidence of Authorization. The Lender shall have received copies certified by the Managing Member of the
Borrower (or other appropriate officer) and each Person other than the Lender who is a party to any Loan Document of all corporate
resolutions or other action taken to authorize its execution and delivery and performance of the Loan Documents or any other documents
required hereby, together with such other related papers as the Lender shall reasonably require.

 

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(c)
Evidence of Insurance. The Borrower shall deliver to Lender evidence of insurance and payment of all premiums,
satisfactory to Lender in its sole discretion, as to each policy of insurance required to be maintained by Borrower under Section
6.5(a) of this Agreement.

 

(d)
Loan Documents. The Lender shall have received the fully executed original Loan Documents. In addition, the
Lender shall have received all certificates, instruments and other documents then required to be delivered pursuant to any Loan
Documents, in each instance in form and substance reasonably satisfactory to the Lender.

 

(e)
Consents. The Borrower shall have provided to the Lender evidence satisfactory to the Lender that all governmental,
shareholder and third party consents and approvals necessary in connection with the transactions contemplated by this Agreement
have been obtained and remain in effect including, without limitation, a consent from the Borrower’s landlord in form and
substance satisfactory to the Lender.

 

(f)
Change. No Material Adverse Effect shall have occurred.

 

(g)
Financing Statements. All financing statements necessary to perfect the Lender’s security interest
in the Collateral shall have been filed and all other action necessary to perfect the Lender’s security interest shall have
been taken.

 

(h)
FirstACH. The Lender shall have received satisfactory evidence, as determined in its sole discretion, establishing
that FirstACH has received irrevocable instructions and agreed to deposit all proceeds from Consumer Loan into the Collection
Account.

 

(i)
Loan Account. The Lender shall have received (i) satisfactory evidence, as determined in its sole discretion, establishing
the Lender as a co-signer on the Loan Account and (ii) an amended signature card for the Loan Account fully completed and executed
by the Borrower establishing the Lender as the sole signatory on the Loan Account.

 

(j)
Profit Sharing Agreement. The Lender shall have received fully executed originals of the Profit Sharing Agreement
with the Borrower, the Parent and Investment Evolution Global Corporation, a Delaware corporation, and any related agreement required
by the same.

 

(k)
Operating Agreement. The Lender shall have fully executed copies of the Approved Operating Agreement.

 

(l)
Independent Manager. The Lender shall have received satisfactory evidence, as determined in its sole discretion,
establishing that Borrower has entered into an agreement to appoint John P. Barber, Jr. as an independent manager of the Borrower
under the Approved Operating Agreement.

 

(m)
Consumer Loan Purchase Documents. The Lender shall have received fully executed copies of the Approved Purchase
Agreement and the Approved Servicing Agreement.

 

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(n)
Due Diligence. The Lender shall have completed and been satisfied with the results of its due diligence review
and audit of the Borrower, its financial condition, assets, operations and property.

 

(o)
Documentation Fee. The Borrower shall have paid and reimbursed the Lender for any expenses it incurs in connection
with the Lender’s due diligence review of the Borrower up to a maximum of Five Thousand and No/100 Dollars ($5,000.00).

 

(p)
Payment of Legal Fees. The Borrower shall have paid and reimbursed the Lender for any expenses it incurs in the
preparation of this Agreement and any agreement or instrument required by this Agreement up to a maximum of Twenty Thousand and
No/100 Dollars ($20,000.00) in excess of those fees and costs described in 5.1(o) above. Expenses include, but are not limited
to, the Lender’s attorneys’ fees and costs.

 

(q)
Consumer Loan Documents. The Lender shall have received the original documents evidencing the obligations of the
Consumer Loan Debtor to the Borrower for every Consumer Loan sold, transferred or held by the Borrower.

 

6.
AFFIRMATIVE COVENANTS.

 

The
Borrower covenants and agrees that from and after the date of this Agreement and so long as any Obligation remains unpaid or outstanding,
the Borrower will, and will cause the Parent and each Subsidiary, if any, to do the following:

 

6.1
Financial Statements, Consumer Loan Documents and Reports.

 

The
Borrower shall furnish to the Lender the following documents, instruments and financial information:

 

(a)
Compliance Certificate. On a monthly basis beginning on the first day of each calendar month following the date
hereof and continuing on the same day of each calendar month thereafter, as of the last day of the immediately preceding month,
or at any other time requested by Lender in its sole discretion, a Compliance Certificate certified by both the Authorized Financial
Officer of the Parent and the Authorized Manager of the Borrower.

 

(b)
Consumer Loan Documents. Within seven (7) days from the purchase, transfer or assignment of a Consumer Loan
to the Borrower, or at such other intervals as the Lender may hereafter determine, the original documents evidencing the obligations
of the Consumer Loan Debtor to the Borrower; copies of all documents relating to the Consumer Loan; and such further information
and/or schedules as the Lender may reasonably require, all in a form satisfactory to the Lender.

 

(c)
Annual Statements. As soon as available but no later than ninety (90) days after the end of each Fiscal Year,
annual, consolidated Financial Statements which shall be compiled by an independent certified public accountant acceptable to
the Lender and presenting fairly, in all material respects, the financial position, and the results of operations and the cash
flows of the Borrower and the Parent and any Affiliates thereof for such period. In addition to the annual Financial Statements,
the Borrower shall, promptly upon receipt, furnish to the Lender a copy of any other report submitted to the Borrower or the Parent
or any Affiliates thereof by independent accountants in connection with any annual, interim or special audit made by them of the
financial records of the Borrower.

 

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(d)
Tax Returns. Within fifteen (15) days after they are filed, copies of federal income tax returns of the Borrower
and its Parent and any Affiliates thereof with all schedules. In the event any lawful extension is obtained with respect to the
filing date of such federal income tax returns, the Borrower will deliver a copy of the extension request to the Lender with fifteen
(15) days of filing.

 

(e)
Other Information. From time to time, such further information regarding the business, affairs, and financial
condition of the Borrower, the Parent and any Affiliates thereof as the Lender may reasonably request.

 

6.2
Material Changes and Other Information. The Borrower shall promptly notify the Lender of any litigation, administrative
proceeding, investigation, business development, or change in financial condition which could reasonably have a Material Adverse
Effect. In addition, promptly upon request by the Lender from time to time (which may be on a monthly or other basis), the Borrower
shall provide such other information and reports regarding the operations, business affairs, prospects and financial condition
of the Borrower as the Lender may reasonably request.

 

6.3
Maintenance of Corporate Existence; Assets. The Borrower shall notify the Lender at least thirty (30) days before
any change of name of the Borrower and shall maintain:

 

(a)
its corporate existence and its qualification to do business and good standing in each jurisdiction in which qualification is
necessary for the proper conduct of its business;

 

(b)
all licenses, permits and other authorizations necessary for the ownership and operation of its properties and business; and

 

(c)
its assets and properties (including all of the Collateral) in good repair, working order and condition and shall make all necessary
or appropriate repairs, renewals, replacements and substitutions, so that the value and efficiency of all such assets and properties
shall at all times be properly preserved and maintained.

 

6.4
Conduct of Business; Permits and Approvals; Compliance with Laws. The Borrower and its Subsidiaries,
if any, shall (a) continue to engage in an efficient and economical manner in a business of the same general type as conducted
by it on the date of this Agreement; (b) maintain, in full force and effect, its franchises, and all licenses, patents, trademarks,
trade names, contracts, permits, approvals and other rights necessary to the profitable conduct of its business; and (c) comply,
in all respects with all applicable laws, rules, Regulations, and orders.

 

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6.5
Maintenance of Insurance.

 

(a)
Maintenance of Insurance. The Borrower and each Subsidiary, if any, will maintain with financially sound
and reputable insurers insurance with respect to its properties and business against such casualties and contingencies as shall
be in accordance with general practices of businesses engaged in similar activities in similar geographic areas. Such insurance
shall be in such minimum amounts that the Borrower will not be deemed a co-insurer under applicable insurance laws, regulations
and policies and otherwise shall be in such amounts, contain such terms, be in such forms and be for such periods as may be reasonably
satisfactory to the Lender. In addition, all such insurance shall be payable to the Lender as loss payee. Without limiting the
foregoing, the Borrower will (i) keep all of its physical property insured with casualty or physical hazard insurance on an “all
risks” basis, with broad form flood and earthquake coverages and electronic data processing coverage, with a full replacement
cost endorsement and an “agreed amount” clause in an amount equal to 100% of the full replacement cost of such property,
(ii) maintain all such workers’ compensation or similar insurance as may be required by law, and (iii) maintain, in amounts
and with deductibles equal to those generally maintained by businesses engaged in similar activities in similar geographic areas,
general public liability insurance against claims of bodily injury, death or property damage occurring, on, in or about the properties
of the Borrower; business interruption insurance; and product liability insurance.

 

(b)
Insurance Proceeds. The proceeds of any casualty insurance in respect of any casualty loss of any of the
Collateral shall, subject to the rights, if any, of other parties with an interest having priority in the property covered thereby,
(i) so long as no Event of Default has occurred and is continuing and to the extent that the amount of such proceeds is less than
Fifty Thousand and No/100 Dollars ($50,000.00) be disbursed to the Borrower for direct application by the Borrower solely to the
repair or replacement of the Borrower’s property so damaged or destroyed, and (ii) in all other circumstances, be held by
the Lender as cash collateral for the Obligations. The Lender may, at its sole option, disburse from time to time all or any part
of such proceeds so held as cash collateral, upon such terms and conditions as the Lender may reasonably prescribe, for direct
application by the Borrower solely to the repair or replacement of the Borrower’s property so damaged or destroyed, or the
Lender may apply all or any part of such proceeds to the Obligations.

 

(c)
Continuation of Insurance. All policies of insurance shall provide for at least thirty (30) days prior written cancellation
notice to the Lender. In the event of failure by the Borrower to provide and maintain insurance as provided in this Agreement,
the Lender may, at its option, provide such insurance and charge the amount thereof to the Borrower. The Borrower shall furnish
the Lender with certificates of insurance and policies evidencing compliance with the foregoing insurance provision.

 

6.6
Payment of Debt; Payment of Taxes; Etc. The Borrower and each Subsidiary, if any, shall promptly
pay and discharge:

 

(a)
all of its Debt in accordance with its terms;

 

(b)
all Taxes, assessments, and governmental charges or levies imposed upon it or upon its income and profits, upon any of its property,
real, personal or mixed, or upon any part thereof, not less than ten (10) days before the date upon which any interest or penalties
shall accrue; and

 

(c)
all lawful claims for labor, materials and supplies or otherwise, which, if unpaid, might become a lien or charge upon the property
or any part thereof.

 

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6.7
Notice of Events. Promptly upon discovery by the Borrower or any officer or manager of the Borrower of
any of the events described in subsections (a) through (g) below, the Borrower shall deliver to the Lender within three (3) days
of the discovery a written notice, which describes the event and all action the Borrower proposes to take with respect thereto:

 

(a)
an Event of Default or Potential Default under this Agreement;

 

(b)
any default or event of default under a contract or contracts and the default or event of default involves payments by one or
more of the Borrower or the Parent in an aggregate amount equal to or in excess of Twenty-Five Thousand Dollars ($25,000.00);

 

(c)
a default or event of default under or as defined in any evidence of or agreements for Indebtedness for Borrowed Money under which
the Borrower’s or the Parent’s liability is equal to or in excess of Twenty-Five Thousand and No/100 Dollars ($25,000.00)
singularly or in the aggregate, whether or not an event of default has been declared by any party to the agreement or any event
which, upon the lapse of time or the giving of notice or both, would become an event of default under any agreement or instrument
or would permit any party to the instrument or agreement to terminate or suspend any commitment to lend to the Borrower or the
Parent or to declare or to cause any of the indebtedness to be accelerated or payable before it would otherwise be due;

 

(d)
the institution of, any material adverse determination in, or the entry of any default judgment or order or stipulated judgment
or order in, any suit, action, arbitration, administrative proceeding, criminal prosecution or governmental investigation against
the Borrower or the Parent in which the amount in controversy is at least Twenty-Five Thousand and No/100 Dollars ($25,000.00)
singularly or in the aggregate;

 

(e)
any change in any Regulation, including, without limitation, changes in tax laws and regulations, which could reasonably have
a material adverse impact on the ability of the Borrower to perform its obligations under the Loan Documents or a Material Adverse
Effect;

 

(f)
the receipt of any notice from any governmental authority that the Borrower is disqualified, barred or suspended from bidding
on or performing any contract or proposed contract; or

 

(g)
any change in the location of its place of business, of the places where records concerning its Accounts are kept, or any new
location or discontinuance of any place of business.

 

6.8
Inspection Rights. The Borrower shall at any time during regular business hours and as often as reasonably requested
in advance by the Lender, (a) but no sooner than twenty four (24) hours from such request, permit the Lender or any authorized
officer, employee, agent, or representative of the Lender, to examine and make abstracts from the records and books of the Borrower
and the Parent at the main office in Las Vegas, Nevada, (b) upon five (5) days notice, visit the other branch offices of the Parent
and examine and make abstracts from the records and books of the Borrower and the Parent located at such locations, (c) and to
discuss the affairs, finances, and accounts of the Borrower and the Parent with any of such parties’ officers, directors
or independent accountants, which activities shall be at the expense of the Lender but reimbursed by the Borrower per Section
2.11(b).

 

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6.9
Further Assurances. The Borrower and each Subsidiary, if any, shall do such further acts and things and execute
and deliver to the Lender such additional assignments, agreements, powers and instruments, as the Lender may reasonably require
or reasonably deem advisable to carry into affect the purposes of this Agreement or to better assure and confirm unto the Lender
rights, powers and remedies under this Agreement.

 

6.10
Maintenance of Books and Records. The Borrower shall keep complete and accurate books and records with respect
to the business of the Borrower and the Collateral consistent with good business. The Borrower will permit officers or representatives
of the Lender to examine and make excerpts from such books and records and to visit and inspect its properties, both real and
personal, at all reasonable times.

 

6.11
Maintenance of Collateral. The Borrower shall take adequate care of the Collateral and maintain it in good working
order and repair. The Borrower shall notify the Lender of any change occurring in or to any Collateral or in any fact or circumstance
warranted or represented by the Borrower to the Lender.

 

6.12
Collateral Protection Expenses; Preservation of Collateral.

 

(a)
Expenses Incurred by Lender. In the Lender’s discretion, if the Borrower fails to do so, the Lender
may discharge Taxes and other encumbrances at any time levied or placed on any of the Collateral, maintain any of the Collateral,
make repairs thereto and pay any necessary filing fees or insurance premiums. The Borrower agrees to reimburse the Lender on demand
for all expenditures so made. The Lender shall have no obligation to the Borrower to make any such expenditures, nor shall the
making thereof be construed as the waiver or cure of any Event of Default.

 

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

 

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6.13
Assignment of Claims Act. The Borrower shall notify the Lender immediately if any Accounts arise out of contracts
with the United States or any department, agency, or instrumentality thereof. The Borrower shall execute any instruments and take
any steps to perfect the assignment of the Borrower’s rights to the Lender as required under the Federal Assignment of Claims
Act.

 

6.14
Collateral. The Borrower shall: (a) keep the Collateral at the chief executive office of the Borrower; (b) except
for the security interest granted under this Agreement, be the owner of the Collateral free from any right or claim of any other
person, Lien, security interest or other encumbrance, and the Borrower shall defend the same against all claims and demands of
all persons at any time claiming the same or any interests therein adverse to the Lender, (c) keep the Collateral in good order
and repair and will not use the same in violation of law or any policy of insurance thereon, (d) permit the Lender, or its designee,
to inspect the Collateral at any reasonable time, wherever located, (e) pay promptly when due all taxes, assessments, governmental
charges and levies upon the Collateral or incurred in connection with the use or operation of such Collateral or incurred in connection
with this Agreement, and (f) continue to operate, its business in compliance with all applicable provisions of the federal Fair
Labor Standards Act, as amended, and 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.

 

6.15
OFAC; PATRIOT Act Compliance. The Borrower will (a) refrain from doing business with any Blocked Person in violation
of the economic sanctions of the United States administered by the Office of Foreign Assets Control, and (b) provide, the extent
commercially reasonable, such information and take such actions as are reasonably requested by the Lender in order to assist the
Lender in maintaining compliance with the PATRIOT Act.

 

6.16
Purchase of Consumer Loans. The Borrower will cause Consumer Loans originated or held by the Parent or any Affiliate
of the Parent to be timely transferred to the Borrower as set forth in the Approved Purchase Agreement.

 

6.17
Accounts. 

 

(a)
Control Agreement. Notwithstanding any other provision hereof, within 180 days from the Closing Date, the Borrower
shall deliver a fully executed account control agreement for the Loan Account, in form and substance satisfactory to the Lender
in its sole discretion, in favor of the Lender with the applicable financial institution holding the Loan Account.

 

(b)
Account Access. The Borrower shall provide or cause to be provided to the Lender at all times online viewing privileges
to the Loan Account and the Collection Account.

 

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7.
NEGATIVE COVENANTS.

 

The
Borrower covenants and agrees that, without the prior written consent of the Lender, from and after the date of this Agreement
and so long as any Obligations remain unpaid or outstanding, it will not, and will not permit any Subsidiary to do any of the
following:

 

7.1
Legal Status, Merger, Consolidation. Neither the Borrower nor the Parent shall:

 

(a)
change its name, place of business, chief executive office, mailing address or organizational identification number without providing
at least thirty (30) days prior written notice to the Lender;

 

(b)
change its type of organization, jurisdiction of organization or other legal structure; merge, consolidate, divide or liquidate
or allow itself to be liquidated;

 

(c)
sell, transfer, convey or lease all or any substantial part of its assets except for the sale or other disposition of assets in
the ordinary course of its business, or

 

(d)
purchase or otherwise acquire any shares of stock of, or similar interest in any other Person or all or substantially all of the
assets or business of any other Person.

 

7.2
Indebtedness for Borrowed Money. Neither the Borrower nor the Parent shall incur, create, or permit to exist
any Indebtedness for Borrowed Money except Indebtedness for Borrowed Money of the Borrower under this Agreement.

 

7.3
Liens. Neither the Borrower nor the Parent shall create, assume or permit to exist any Lien on any of its property
or assets whether now owned or hereafter acquired, or upon any income or profits therefrom, except Permitted Liens.

 

7.4
Guaranties. Neither the Borrower nor the Parent shall guaranty or otherwise in any way become or be responsible
for indebtedness or obligations (including working capital maintenance, take-or-pay contracts, etc.) of any other Person, contingently
or otherwise, except: (a) the endorsement of negotiable instruments of deposit in the normal course of business; (b) any guaranty
to secure any indebtedness or obligation which is permitted under this Agreement; and (c) those guaranties described on Schedule
7.4.

 

7.5
Acquisitions and Investments. Neither the Borrower nor the Parent shall purchase or otherwise acquire (including
without limitation by way of share exchange) any part or amount of the capital stock or assets of, or make an Investment in any
other Person; enter into any new business activities or ventures not directly related to its present business; or create any Subsidiary.

 

7.6
Transfer of Assets; Nature of Business. Neither the Borrower nor the Parent shall (a) sell, transfer, pledge,
assign or otherwise dispose of any assets or capital stock of the Borrower or the Parent; or (b) discontinue, liquidate or change
in any material respect any substantial part of its operations or business.

 

7.7
Restricted Payments. Neither the Borrower nor the Parent shall make any redemptions, repurchases, dividends
or distributions of any kind in respect of the Borrower’s equity interests; provided, however, the Borrower may make regular
dividends and distributions so long as there is no Event of Default under this Agreement.

 

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7.8
Accounting Change. Neither the Borrower nor the Parent shall make or permit any change in financial accounting
policies or financial reporting practices.

 

7.9
Goods. The Borrower shall not store any Collateral with a bailee or authorize, cause, or permit the issuance
or execution of any negotiable warehouse receipt or bill of lading representing any right, title, or interest in and to any Collateral,
unless same are forthwith turned over to the Lender so that the Lender shall continue to have a perfected security interest in
such Collateral.

 

7.10
Fixtures and Accessions. The Borrower shall not allow any Collateral to become affixed to real estate, become
an accession to other goods or become part of a product or mass, without first providing the Lender with all waivers and consent
the Lender deems necessary to make its security interest valid against, and superior to, the rights of all parties holding interests
in the real estate or other goods.

 

7.11
Intangibles. The Borrower shall not extend the time for payment of any Account or otherwise modify, amend, or
impair any of the terms of any Collateral. The Borrower shall promptly notify the Lender of any disputes that shall arise in connection
with any Collateral or if any obligation is not paid when due, or if any petition in bankruptcy or under any other insolvency
act for the relief of debtors with respect to an Account Debtor is filed, or if an Account Debtor makes an assignment for the
benefit of creditors, becomes insolvent, or ceases to carry on its business, or if the Borrower has notice of any facts or circumstances
that could reasonably be expected to have a material adverse effect upon the ability of an Account Debtor to pay its obligations
on any Collateral. The Borrower shall endorse and transfer possession of all Instruments, Documents and Chattel Paper now part
of the Collateral to the Lender immediately, and as to those hereafter acquired, immediately following acquisition. The Borrower
shall perfect a security interest (using a method satisfactory to the Lender) in all Goods covered by Chattel Paper.

 

7.12
Transactions with Affiliates or Subsidiaries.

 

(a)
The Borrower shall not enter into any transaction with any Affiliate including, without limitation, the purchase, sale, or exchange
of property, or the loaning, payment or giving of funds to any Affiliate except for the Approved Purchase Agreement and the Approved
Servicing Agreement.

 

(b)
Neither the Borrower nor the Parent shall create or acquire any Subsidiary without the prior written consent of the Lender.

 

7.13
Collateral. The Borrower shall not: (a) remove the Collateral from the chief executive office of the Borrower
without providing at least thirty (30) days prior written notice to the Lender, except for the removal of Inventory in the ordinary
course of business; (b) pledge, mortgage or create, or suffer to exist any right of any person in or claim by any person to the
Collateral, or any security interest, lien or encumbrance in the Collateral in favor of any person, other than the Lender, except
as permitted under the Loan Documents; (c) sell or otherwise dispose, or offer to sell or otherwise dispose, of the Collateral
or any interest therein except for (i) sales and leases of Inventory and licenses of General Intangibles in the ordinary course
of business, and (ii) so long as no Event of Default has occurred and is continuing, sales or other dispositions of obsolescent
items of equipment consistent with past practices.

 

    	33

    	 

    

 

7.14
Management Changes. The Borrower acknowledges that the Lender is relying upon the abilities of the Authorized
Manager as a material inducement for the Lender to enter into this Agreement and agree to make the Loan. Accordingly, the Borrower
shall, at all times, maintain a manager or managing member that is satisfactory to the Lender.

 

7.15
Contracts. The Borrower shall not enter into any agreements, contracts, purchase or sale orders, leases for personal
or real property, commitments, arrangements or understandings, written or oral, other than the Profit Sharing Agreement, the Approved
Purchase Agreement, and the Approved Servicing Agreement.

 

7.16
Amendment to Core Documents. The Borrower shall not make or permit to be made any amendment, modification
or change to the Approved Operating Agreement, the Profit Sharing Agreement, the Approved Purchase Agreement, or the Approved
Servicing Agreement

 

7.17
Consumer Loans Business. Neither the Borrower, nor the Parent or any Affiliate thereof shall (a) own, control, operate
or manage any other business that makes consumer loans in the United States of America other than through the Parent, or (b) permit
any Consumer Loans originated or held by the Parent or any Affiliate to be sold to any other Person except to the Borrower in
compliance with the terms of the Approved Purchase Agreement.

 

7.18
Loan Account Changes. Neither the Borrower, nor the Parent shall not take any action to direct payments from Consumer
Loan Debtors for Consumer Loans to any other account other than the Collection Account, direct funds held in the Collection Account
to any other account other than the Loan Account, or remove the Lender as a signatory on the Loan Account.

 

7.19
Employees. The Borrower shall not hire or retain any employees, agents or consultants in the operation of its business
or otherwise.

 

8.
DEFAULT.

 

8.1
Events of Default. The Borrower shall be in default if any one or more of the following events (each, an “Event
of Default”) occurs:

 

(a)
Payments. The Borrower fails to pay any payment of principal or interest on the Note when due and payable
(whether at maturity, by notice of intention to prepay, or otherwise).

 

(b)
Other Charges. The Borrower fails to pay any other charges, fees, expense or obligations owing to the Lender
arising out of or incurred in connection with this Agreement or any other Loan Document within ten (10) days after the date the
Lender gives notice that the payment is due and payable.

 

    	34

    	 

    

 

(c)
Covenants. The Borrower, the Parent or any Affiliate thereof fails to observe or perform as and when required
any of the terms, conditions or covenants contained in any Loan Document (other than with respect to the covenants contained in
Sections 6 and 7 of this Agreement for which no cure period shall exist), and such failure continues for thirty (30) Business
Days after the date the Lender gives notice of such failure to the Borrower.

 

(d)
Representations, Warranties. Any representation or warranty made or deemed to be made by the Borrower, the
Parent or any Affiliate thereof in this Agreement or in any other Loan Document or in any exhibit, schedule, report or certificate
delivered pursuant to this Agreement or the other Loan Documents shall prove to have been false, misleading or incorrect in any
material respect.

 

(e)
Bankruptcy. The Borrower, the Parent, any Affiliate thereof or any Guarantor of the Obligations is dissolved
or liquidated, makes an assignment for the benefit of creditors, files a petition in bankruptcy, is adjudicated insolvent or bankrupt,
petitions or applies to any tribunal for any receiver or trustee, commences any proceeding relating to itself under any bankruptcy,
reorganization, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction, has commenced against it
any such proceeding which remains undismissed for a period of thirty (30) days, or indicates its consent to, approval of or acquiescence
in any such proceeding, or any receiver of or trustee for the Borrower, the Parent or any Subsidiary or any substantial part of
the property of the Borrower, the Parent or any Subsidiary is appointed, or if any such receivership or trusteeship to continues
undischarged for a period of thirty (30) days.

 

(f)
Other Obligations between Borrower and Lender. The Borrower breaches or is in default under any other agreement
between the Borrower and the Lender.

 

(g)
Attachments. Any of the Collateral is subjected to attachment, execution, levy, seizure or confiscation in
any legal proceeding or otherwise, or if any legal or administrative proceeding is commenced against the Borrower or any of the
Collateral, which in the good faith judgment of the Lender subjects any of the Collateral to a material risk of attachment, execution,
levy, seizure or confiscation and no bond is posted or protective order obtained to negate such risk.

 

(h)
Change in Control. Any Change in Control shall occur with respect to the Borrower, the Parent or any Affiliate
thereof. A Change in Control shall be deemed to have occurred if (a) any Person becomes the “beneficial owner” (as
defined in Rule 13d-5 under the Exchange Act, except that a Person shall be deemed to have “beneficial ownership”
of all capital stock of the such entity that such Person has the right to acquire, whether such right is exercisable immediately
or only after the passage of time), directly or indirectly, of more than fifty percent (50%) of the total voting power of the
issued and outstanding capital stock of such entity normally entitled to vote in the election of the board of directors of such
entity, or (b) during any consecutive two (2) year period, individuals who at the beginning of such period constituted a majority
of the members of the board of directors of such entity or whose nomination for election by the stockholders of such entity was
approved by a majority of the members of the board of directors then still in office who were either directors at the beginning
of such period or whose election or nomination for election was previously so approved) cease for any reason to constitute a majority
of the members of the board of directors then in office.

 

    	35

    	 

    

 

(i)
Revocation of Guaranty. Any Guarantor revokes or attempts to revoke his or her guaranty of any of the Obligations
or fails to observe or perform any covenant, condition or agreement to be performed under any guaranty or other related document
to which he or she is a party.

 

(j)
Termination of Business. The Borrower or its Parent ceases any material portion of its business operations
as presently conducted.

 

(k)
Termination or Amendment of Security Interest. Debtor’s improper filing of an amendment or termination
statement relating to a filed financing statement describing the Collateral.

 

(l)
Sale of Business. The Borrower, the Parent or any Affiliate thereof sells, assigns or transfers substantially
all of such entity’s assets without the prior written consent of the Lender.

 

(m)
Lien Priority. The Lender fails to have a valid and enforceable perfected security interest in or lien on the Consumer
Loans or other Collateral securing the Borrower’s obligations under this Agreement, or such security interest or lien fails
to be prior to the rights and interest of all other Liens except for any Liens in favor of the Lender and Permitted Liens.

 

(n)
Lawsuits. Any lawsuit or lawsuits are filed against the Borrower or the Parent seeking an aggregate amount of One
Hundred Thousand and No/100 Dollars ($100,000.00) or greater.

 

(o)
Injunction. The Borrower or the Parent is enjoined, restrained, or in any way prevented by order of any court or
any administrative or regulatory agency from conducting all or any material part of its business affairs and such order is not
lifted or stayed within ten (10) Business Days.

 

(p)
Government Action. Any government authority takes action that the Lender believes materially adversely affects the
Borrower’s or any Guarantor’s financial condition or ability to repay.

 

(q)
Other Funding. The Borrower, the Parent or any Affiliate thereof incurs, creates, or permits to exist any Indebtedness
for Borrowed Money other than Indebtedness for Borrowed Money of the Borrower under this Agreement.

 

(r)
Other Business. The Borrower, the Parent or any Affiliate thereof owns, controls, operates or manages a consumer
loan business in the United States of America other than the Parent’s consumer loan business.

 

(s)
Loan Sales. Any Consumer Loan originated or held by the Parent or any Affiliate thereof is not sold to the Borrower
in compliance with the terms of the Approved Purchase Agreement.

 

    	36

    	 

    

 

(t)
Deposits. Payments on account of Consumer Loans are deposited into any other account other than the Collection Account,
or all amounts held in the Collection Account are not deposited into the Loan Account on a daily basis.

 

(u)
Breach or Termination of Agreements. Any breach or termination of the Approved Purchase Agreement or the Approved
Servicing Agreements by either the Borrower or the Parent occurs without the express written consent of the Lender.

 

(v)
Cross Default. A material breach by the Borrower, the Parent or any Affiliate thereof shall occur under (i)
any loan arising from a Refinance Event or (ii) other agreement, document or instrument, whether heretofore, now or hereafter
existing between such entity and any Person other than the Lender involving amounts at issue exceeding Ten Thousand and No/100
($10,000.00) and such breach continues for more than five (5) Business Days.

 

8.2
Rights and Remedies. In addition to all other rights, options, and remedies granted or available to the Lender
under any of the Loan Documents or otherwise available at law or in equity, upon an occurrence and continuance of an Event of
Default (other than an Event of Default under Section 8.1(e)), the Lender may, at its option, terminate this Agreement and declare
the Loan and all other Obligations, including without limitation accrued interest, to be due and payable without presentment,
demand, protest or other notice of any kind, all of which are hereby waived by the Borrower. Upon the occurrence of any event
specified in Section 8.1(e) above, this Agreement shall automatically terminate and the Loan and all other Obligations, including
without limitation accrued interest, shall immediately be due and payable without presentment, demand, protest or other notice
of any kind, all of which are hereby waived by the Borrower. So long as an Event of Default shall have occurred and be continuing
and at all times thereafter, the Loan shall bear interest at the Default Rate. If an Event of Default shall have occurred and
be continuing, the Lender, without any other notice to or demand upon the Borrower, shall have in any jurisdiction in which enforcement
hereof is sought, in addition to all other rights and remedies, the rights and remedies of a secured party under the Uniform Commercial
Code of Florida and any additional rights and remedies which may be provided to a secured party in any jurisdiction in which Collateral
is located, including, without limitation, the right to take possession of the Collateral, and for that purpose the Lender may,
so far as the Borrower can give authority therefor, enter upon any premises on which the Collateral may be situated and remove
the same therefrom. The Lender may in its discretion require the Borrower to assemble all or any part of the Collateral at such
location or locations within the jurisdiction(s) of the Borrower’s principal office(s) or at such other locations as the
Lender may reasonably designate. Unless the Collateral is perishable or threatens to decline speedily in value or is of a type
customarily sold on a recognized market, the Lender shall give to the Borrower at least ten (10) calendar days prior written notice
of the time and place of any public sale of Collateral or of the time after which any private sale or any other intended disposition
is to be made. The Borrower hereby acknowledges that ten (10) calendar days prior written notice of such sale or sales shall be
reasonable notice. In addition, the Borrower waives any and all rights that it may have to a judicial hearing in advance of the
enforcement of any of the Lender’s rights and remedies hereunder, including, without limitation, its right following an
Event of Default to take immediate possession of the Collateral and to exercise its rights and remedies with respect thereto.

 

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8.3
Default Rate. To the extent permitted by law, whenever there is an Event of Default or non-payment upon demand,
the rate of interest on the unpaid principal balance of the Loan shall, at the option of the Lender, be the lesser of (i) three
percent (3%) per annum above the interest rate payable under this Agreement or (ii) the maximum amount permitted by applicable
law to be contracted for, charged or received (the “Default Rate”). The Borrower acknowledges that: (a) the
Default Rate is a material inducement to the Lender to enter this Agreement; (b) the Lender would not have entered into this Agreement
in the absence of the agreement of the Borrower to pay the Default Rate; (c) the Default Rate represents compensation for increased
risk to the Lender that the Obligations will not be repaid; and (d) the Default Rate is not a penalty and represents a reasonable
estimate of (i) the cost to the Lender in allocating its resources (both personnel and financial) to the on-going review, monitoring,
administration and collection of the Loan Documents, and (ii) compensation to the Lender for losses that are difficult to ascertain.

 

8.4
Securities and Deposits. The Lender may at any time following and during the continuance of an Event of Default,
at its option, transfer to itself or any nominee any securities constituting Collateral, receive any income thereon and hold such
income as additional Collateral or apply it to the Obligations. Whether or not any Obligations are due, the Lender may, following
and during the continuance of an Event of Default, demand, sue for, collect, or make any settlement or compromise, which it deems
desirable with respect to the Collateral. Regardless of the adequacy of Collateral or any other security for the Obligations,
any deposits or other sums at any time credited by or due from the Lender to the Borrower may at any time be applied to or set
off against any of the Obligations then due and owing.

 

8.5
Notification to Account Debtors and Other Persons Obligated on Collateral. If an Event of Default shall have
occurred and be continuing, the Borrower shall, at the request and option of the Lender, notify account debtors and other persons
obligated on any of the Collateral of the security interest of the Lender in any account, chattel paper, general intangible, instrument
or other Collateral and that payment thereof is to be made directly to the Lender or to any financial institution designated by
the Lender as the Lender’s agent therefor, and the Lender may itself, if an Event of Default shall have occurred and be
continuing, without notice to or demand upon the Borrower, so notify account debtors and other persons obligated on Collateral.
After the making of such a request or the giving of any such notification, the Borrower shall hold any proceeds of collection
of accounts, chattel paper, general intangibles, instruments and other Collateral received by the Borrower as trustee for the
Lender without commingling the same with other funds of the Borrower and shall turn the same over to the Lender in the identical
form received, together with any necessary endorsements or assignments. The Lender shall apply the proceeds of collection of accounts,
chattel paper, general intangibles, instruments and other Collateral received by the Lender to the Obligations.

 

    	38

    	 

    

 

8.6
Standards for Exercising Rights and Remedies. To the extent that applicable law imposes duties on the Lender
to exercise remedies in a commercially reasonable manner, the Borrower acknowledges and agrees that it is not commercially unreasonable
for the Lender (a) to fail to incur expenses reasonably deemed significant by the Lender to prepare any Collateral for disposition
or otherwise to fail to complete raw material or work in process into finished goods or other finished products for disposition,
(b) to fail to obtain third party consents for access to Collateral to be disposed of, or to obtain or, if not required by other
law, to fail to obtain governmental or third party consents for the collection or disposition of the Collateral to be collected
or disposed of, (c) to fail to exercise collection remedies against Account Debtors or other persons obligated on the Collateral
or to fail to remove liens or encumbrances on or any adverse claims against the Collateral, (d) to exercise collection remedies
against Account Debtors and other persons obligated on the Collateral directly or through the use of collection agencies and other
collection specialists, (e) to advertise dispositions of the Collateral through publications or media of general circulation,
whether or not the Collateral is of a specialized nature, (f) to contact other persons, whether or not in the same business as
the Borrower, for expressions of interest in acquiring all or any portion of the Collateral, (g) to hire one or more professional
auctioneers to assist in the disposition of the Collateral, whether or not the collateral is of a specialized nature, (h) to dispose
of Collateral by utilizing Internet sites that provide for the auction of assets of the types included in the Collateral or that
have the reasonable capability of doing so, or that match buyers and sellers of assets, (i) to dispose of the assets in wholesale
rather than retail markets, (j) to disclaim disposition warranties, (k) to purchase insurance or credit enhancements to insure
the Lender against risks of loss, collection or disposition of Collateral or to provide to the Lender a guaranteed return from
the collection or disposition of the Collateral, or (1) to the extent deemed appropriate by the Lender, to obtain the services
of other brokers, investment bankers, consultants and other professionals to assist the Lender in the collection or disposition
of any of the Collateral. The Borrower acknowledges that the purpose of this Section 8.6 is to provide non-exhaustive indications
of what actions or omissions by the Lender would fulfill the Lender’s duties under the UCC or other law of Florida or any
other relevant jurisdiction in the Lender’s exercise of remedies against the Collateral and that other actions or omissions
by the Lender shall not be deemed to fail to fulfill such duties solely on account of not being indicated in this Section 8.6.
Without limitation upon the foregoing, nothing contained in this Section 8.6 shall be construed to grant any rights to the Borrower
or to impose any duties on the Lender that would not have been granted or imposed by this Agreement or by applicable law in the
absence of this Section 8.6.

 

8.7
Marshalling. The Lender shall not be required to marshal any present or future collateral security (including
but not limited to the Collateral) for, or other assurances of payment of, the Obligations or any of them or to resort to such
collateral security or other assurances of payment in any particular order, and all of its rights and remedies hereunder and in
respect of such collateral security and other assurances of payment shall be cumulative and in addition to all other rights and
remedies, however existing or arising. To the extent that it lawfully may, the Borrower hereby agrees that it will not invoke
any law relating to the marshalling of collateral which might cause delay in or impede the enforcement of the Lender’s rights
and remedies under this Agreement or under any other instrument creating or evidencing any of the Obligations or under which any
of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and,
to the extent that it lawfully may, the Debtor hereby irrevocably waives the benefits of all such laws.

 

    	39

    	 

    

 

8.8
Proceeds of Dispositions; Expenses. The Borrower shall pay to the Lender on demand any and all expenses, including
reasonable attorneys’ fees and disbursements, incurred or paid by the Lender in protecting, preserving or enforcing the
Lender’s rights and remedies under or in respect of any of the Obligations or any of the Collateral following an Event of
Default. After deducting all of said expenses, the residue of any proceeds of collection or sale or other disposition of the Collateral
shall, to the extent actually received in cash, be applied to the payment of the Obligations in such order or preference as the
Lender may determine, proper allowance and provision being made for any Obligations not then due. Upon the final payment and satisfaction
in full of all of the Obligations and after making any payments required by Sections 9-608(a)(1)(C) or 9-615(a)(3) of the Uniform
Commercial Code of Florida, any excess shall be returned to the Borrower. In the absence of final payment and satisfaction in
full of all of the Obligations, the Borrower shall remain liable for any deficiency.

 

8.9
No Conflicts with Enforcement. The parties acknowledge that the Profit Sharing Agreement shall not in any way
affect Lender’s rights under this Agreement and as a creditor with respect to the Obligations. Borrower acknowledges that
Borrower received proceeds of this Loan in an arm’s length transaction approved by Borrower and Borrower’s Parent,
with the advice of independent separate counsel. Borrower acknowledges that Borrower will not be entitled to concessions, extensions
or otherwise because of the Lender’s or its Affiliates’ relationship to Borrower.

 

9.
MISCELLANEOUS.

 

9.1
Waiver. No failure or delay on the part of the Lender in exercising any right, power or remedy under any Loan
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any right, power or remedy preclude any
other or further exercise thereof or the exercise of any other right, power or remedy under any Loan Document. The remedies provided
under the Loan Documents are cumulative and not exclusive of any remedies provided by law.

 

9.2
Amendments. No amendment, modification, termination or waiver of any Loan Document or any provision thereof
nor any consent shall be effective unless the same shall be in writing and be signed by the Lender and the Borrower and then any
such waiver or consent shall be effective only in the instance and for the specific purpose for which given. No notice to or demand
on the Borrower shall entitle the Borrower to any other or further notice or demand in similar or other circumstances. Notwithstanding
any other provision contained in any Loan Document, no amendment, modification, termination or waiver shall affect the payment
of principal (including without limitation the date when due), or reduce any interest rate or any fee provided in this Agreement,
or extend the Maturity Date.

 

9.3
Governing Law. The Loan Documents and all rights and obligations of the parties thereunder shall be governed
by and be construed and enforced in accordance with the laws of the State of Florida without regard to principles of conflict
of laws.

 

9.4
Participations and Assignments. The Borrower hereby acknowledges and agrees that the Lender may at any time:
(a) grant participations in all or any portion of its right, title and interest in or to this Agreement or any other Loan Document
(collectively, “Participations”) to any other lending office or to any other bank, lending institution or other
entity which has the requisite sophistication to evaluate the merits and risks of investments in Participations (“Participants”);
and (b) the Lender may assign its rights and obligations under this Agreement or any of the other Loan Documents. The Borrower
may not assign its rights and obligations under this Agreement or any of the other Loan Documents without the prior written consent
of the Lender. The Borrower agrees to comply with any direction given by the Lender to pay any portion of amounts due under this
Agreement and the Loan Documents to any third party assignee or Participants in the Loan.

 

    	40

    	 

    

 

9.5
Captions. Captions in this Agreement and the other Loan Documents are included for convenience of reference
only and shall not constitute a part of this Agreement or of any Loan Document for any other purpose.

 

9.6
Notices. All notices, requests, demands, directions, declarations and other communications required or permitted
between the Lender and the Borrower provided for in any Loan Document shall be in writing and shall, except as otherwise expressly
provided, be deemed to have been duly given, made and received when personally delivered, or one day following the day when deposited
with an overnight courier such as Federal Express, for delivery to the intended addressee or three (3) days following the day
when deposited in the United States mails, by registered or certified mail, addressed as set forth below.

 

If
to the Borrower:

 

IEC
SPV, LLC

6160
West Tropicana Avenue

Suite
E-13

Las
Vegas, Nevada 89103

Attn:
Paul Mathieson

 

If
to the Lender:

 

BFG
Loan Holdings, LLC

4912
Creekside Drive

Clearwater,
FL 33760

Attn:
Jonathan Golden, Esq.

 

Any
party may alter the address to which communications or copies are to be sent by giving notice of such change of address to the
other party in conformity with the provisions of this Section 9.6.

 

9.7
General. The liability of the Borrower under this Agreement shall continue to be effective or be automatically
reinstated, as the case may be, if at any time payment, in whole or part, of any of the sums due to the Lender is rescinded or
must otherwise be restored or returned upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of the Borrower
or any other Person, or upon or as a result of the appointment of a custodian, receiver, trustee or other officer with similar
powers with respect to the Borrower or any other Person or any substantial part of Borrower’s property, or otherwise, all
as though such payment had not been made.

 

    	41

    	 

    

 

9.8
Net Payments.

 

(a)
All payments made to the Lender by the Borrower under this Agreement, or under any other Loan Document will be made without set
off, counterclaim or other defense. All payments by the Borrower will be made free and clear of, and without deduction or withholding
for, any present or future taxes, levies, imposts, duties, fees, assessments or other charges of whatever nature (including interest,
penalties or similar liabilities) now or hereafter imposed by any jurisdiction or any political subdivision or taxing authority
(but excluding any tax imposed on or measured by the gross or net income of the Lender) pursuant to the laws of the United States
of America or any political subdivision, or taxing authority of the United States of America or any political subdivision, in
which the principal office or applicable lending office of the Lender is located (collectively, together with any amounts payable
pursuant to the next sentence, “Taxes”). If any Taxes are so levied or imposed, the Borrower agrees to pay
the full amount of the Taxes, and such additional amounts as may be necessary so that every payment of all amounts due under this
Agreement, under the Note or under any other Loan Document, after withholding or deduction for or on account of any Taxes, will
not be less than the amount provided for in this Agreement or in the Note. The Borrower will furnish to the Lender upon request
certified copies of tax receipts evidencing such payment by the Borrower. The Borrower will indemnify and hold harmless the Lender,
and reimburse the Lender upon its written request, for the amount of any Taxes so levied or imposed and paid or withheld by the
Lender.

 

(b)
Notwithstanding the preceding subparagraph (a), the Borrower shall be entitled, to the extent required to do so by law, to deduct
or withhold Taxes imposed by the United States of America (or any political subdivision or taxing authority thereof) from interest,
fees or other amounts payable under this Agreement for the account of any Person other than the Lender (i) that is a domestic
corporation (as such term is defined in Section 7701 of the Code) for federal income tax purposes (but excluding any foreign office
of the Lender) or (ii) that has necessary forms on file with the Borrower for the applicable year to the extent deduction or withholding
of such Taxes is not required as a result of the filing of such forms, provided that if the Borrower shall so deduct or withhold
any Taxes, it shall provide a statement to the Lender, setting forth the amount of the Taxes so deducted or withheld, the applicable
rate and any other information or documentation which the Lender may reasonably request for assisting the Lender to obtain any
allowable credits or deductions for the taxes so deducted or withheld in the jurisdiction or jurisdictions in which the Lender
is subject to tax.

 

9.9
Set-Offs and Application of Payments.

 

(a)
The Borrower agrees, to the fullest extent each may effectively do so under applicable law, that any Participant may exercise
rights of setoff or counterclaim and other rights as fully as if the Participant were a direct creditor of the Borrower.

 

(b)
If an Event of Default shall have occurred and be continuing, the Lender and the Borrower agree that all payments on account of
the Obligations shall be applied by the Lender as follows:

 

(1)
First, to the Lender for any fees, costs or expenses incurred by the Lender under any of the Loan Documents or this Agreement,
then due and payable and not reimbursed by the Borrower until such fees, costs and expenses are paid in full;

 

(2)
Second, to the Lender for all interest then due and payable from the Borrower until such interest is paid in full;

 

(3)
Third, to the Lender for the principal amount then due and payable from the Borrower until such principal is paid in full.

 

    	42

    	 

    

 

9.10
Expenses of the Lender; Indemnification of the Lender.

 

(a)
The Borrower will from time to time reimburse the Lender promptly following demand for all out-of-pocket expenses (including the
reasonable fees and expenses of legal counsel) in connection with (i) the preparation of the Loan Documents and any amendments
or modifications, or (ii) the enforcement of the Loan Documents following an Event of Default, including post-bankruptcy fees.

 

(b)
In addition to the payment of the foregoing expenses, the Borrower agrees to indemnify, protect and hold the Lender and any holder
of any Loan Document and the officers, directors, employees, agents, affiliates and attorneys of the Lender (collectively, the
“Indemnitees”) harmless from and against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses and disbursements of any kind or nature, including reasonable fees and expenses of
legal counsel, which may be imposed on, incurred by, or asserted against the Indemnitee by the Borrower or other third parties
and arise out of or relate to this Agreement or any of the other Loan Documents or any other matter whatsoever related to the
transactions contemplated by or referred to in this Agreement or any of the other Loan Documents; provided, however, that the
Borrower shall have no obligation to an Indemnitee to the extent that the liability incurred by the Indemnitee has been determined
by a court of competent jurisdiction to be the result of gross negligence or willful misconduct of the Indemnitee. The provisions
of this Section 9.10(b) shall survive the termination of this Agreement.

 

9.11
Suretyship/Waivers by Borrower. The Borrower waives demand, notice, protest, and notice of acceptance of this
Agreement, notice of loans made, credit extended, Collateral received or delivered or other action taken in reliance hereon and
all other demands and notices of any description. With respect to both the Obligations and the Collateral, the Borrower assents
to any extension or postponement of the time of payment or any other indulgence, to any substitution, exchange or release of or
failure to perfect any security interest in any Collateral, to the addition or release of any Person primarily or secondarily
liable, to the acceptance of partial payment thereon and the settlement, compromising or adjusting of any thereof, all in such
manner and at such time or times as the Lender may deem advisable. The Lender shall have no duty as to the collection or protection
of the Collateral or any income therefrom, the preservation of rights against prior parties, or the preservation of any rights
pertaining thereto. The Borrower further waives any and all other suretyship defenses.

 

9.12
Survival of Warranties and Certain Agreements. All agreements, indemnifications, representations and warranties
made or deemed made by the Borrower in this Agreement shall be of a continuing nature and shall survive the termination of this
Agreement and the full payment and performance of the Obligations. This Agreement shall remain in full force and effect until
the latest to occur of the Maturity Date, or the payment in full and performance of the Obligations.

 

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9.13
Severability. The invalidity, illegality or unenforceability in any jurisdiction of any provision in or obligation
under this Agreement or any other Loan Document shall not affect or impair the validity, legality or enforceability of the remaining
provisions or obligations under this Agreement or any other Loan Document or of such provision or obligation in any other jurisdiction.

 

9.14
No Fiduciary Relationship. No provision in this Agreement or in any other Loan Document and no course of dealing
between the parties shall be deemed to create any fiduciary duty by the Lender to the Borrower. THE PROVISIONS OF THIS AGREEMENT
AND THE LOAN DOCUMENTS INCLUDING WITHOUT LIMITATION CERTAIN PROVISIONS OF SECTION 3 OF THIS AGREEMENT CONTAIN THE GRANT OF POWERS
OF ATTORNEY BY THE BORROWER COUPLED WITH AN INTEREST FOR THE SOLE BENEFIT OF THE LENDER. THIS AGREEMENT IS BEING EXECUTED IN CONNECTION
WITH A LOAN OR OTHER FINANCIAL TRANSACTION FOR BUSINESS PURPOSES AND NOT PRIMARILY FOR PERSONAL, FAMILY OR HOUSEHOLD PURPOSES.
THE LENDER, AS AGENT FOR THE BORROWER UNDER THE POWERS OF ATTORNEY, IS NOT A FIDUCIARY FOR THE BORROWER. THE LENDER, IN EXERCISING
ANY OF ITS RIGHTS OR POWERS PURSUANT TO THE POWERS OF ATTORNEY, MAY DO SO FOR THE SOLE BENEFIT OF THE LENDER AND NOT FOR THE BORROWER.
THE BORROWER HAS NEVERTHELESS READ, UNDERSTANDS AND KNOWINGLY AND VOLUNTARILY ACCEPTS AND AGREES TO SUCH PROVISIONS CONTAINING
POWERS OF ATTORNEY RECOGNIZING THAT CERTAIN IMPORTANT RIGHTS MAY BE RELINQUISHED IF ANY SUCH POWERS ARE EXERCISED.

 

9.15
CONSENT TO JURISDICTION AND SERVICE OF PROCESS. EACH OF THE BORROWER AND THE LENDER
HEREBY CONSENTS TO THE JURISDICTION OF THE Thirteenth Judicial Circuit in and for Hillsborough
County, Florida, or the United States District Court for the Middle District of Florida, Tampa Division, AND IRREVOCABLY
AGREES THAT ANY ACTIONS OR PROCEEDINGS ARISING OUT OF OR RELATING TO THE NOTE, THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS SHALL
ONLY BE LITIGATED IN SUCH COURTS. EACH PARTY TO THIS AGREEMENT ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS PROPERTIES, JURISDICTION
OF THE AFORESAID COURTS AND WAIVES ANY DEFENSE OF FORUM NON CONVENIENS, AND IRREVOCABLY AGREES TO BE BOUND BY ANY JUDGMENT RENDERED
THEREBY IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT.

 

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9.16
WAIVER OF JURY TRIAL. EACH OF THE BORROWER AND THE LENDER HEREBY WAIVES ITS RESPECTIVE
RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OF THE LOAN DOCUMENTS,
OR ANY DEALINGS BETWEEN THEM RELATING TO THE SUBJECT MATTER OF THIS AGREEMENT AND THE LENDER/BORROWER RELATIONSHIP ESTABLISHED
HEREBY. THE SCOPE OF THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT MAY BE FILED IN ANY COURT AND
THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION, INCLUDING WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. EACH OF THE BORROWER AND THE LENDER ACKNOWLEDGES THAT THIS WAIVER IS A
MATERIAL INDUCEMENT TO THE TRANSACTION, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN ENTERING INTO THIS AGREEMENT AND THAT EACH
WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH OF THE BORROWER AND THE LENDER FURTHER WARRANTS AND
REPRESENTS THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL, AND THAT EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS
JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, AND THE WAIVER SHALL APPLY TO ANY SUBSEQUENT
AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, OR TO ANY OTHER DOCUMENTS OR AGREEMENTS
RELATING TO THE LOAN. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

9.17
Counterparts; Effectiveness. This Agreement and any amendments or waivers may be signed in any number of counterparts,
each of which shall be an original, with the same effect as if the signatures were upon the same instrument. This Agreement and
any amendments shall become effective when the Lender shall have received signed counterparts or notice by telecopy of the signature
page that the counterpart has been signed and is being delivered to the Lender or facsimile that the counterparts have been signed
by all the parties.

 

9.18
Use of Defined Terms. All words used herein in the singular or plural shall be deemed to have been used in the
plural or singular where the context or construction so requires. Any defined term used in the singular preceded by “any”
shall be taken to indicate any number of the members of the relevant class.

 

[SIGNATURE
PAGE FOLLOWS]

 

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IN WITNESS
WHEREOF, and intending to be legally bound hereby, the Borrower and the Lender have caused this Loan and Security Agreement
to be executed as of the day and year first above written.

 

	 	BORROWER:
	 	 
	 	IEC
    SPV, LLC
	 	 	 
	 	By:	/s/
    Paul J. Mathieson
	 	Name:	Paul
    J. Mathieson
	 	Its:	Managing
    Member
	 	 	 
	 	LENDER:
	 	 
	 	BFG
    Loan Holdings, LLC
	 	 	 
	 	By:	/s/
    John Fernando
	 	Name:	John
    Fernando
	 	Its:	President

 

    	46

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