Document:

EX-4.24

 Exhibit 4.24 

SUPERCONDUCTOR TECHNOLOGIES INC. 
 Warrant
Shares:
                                        
                                         
                Initial Exercise Date:                     , 2016

 THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received,
             or its assigns (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any
time on or after             , 2016 (the “Initial Exercise Date”) and on or prior to the close of business
on              (the “Termination Date”) but not thereafter, to subscribe for and purchase from Superconductor Technologies Inc., a Delaware corporation (the
“Company”), up to              shares (as subject to adjustment hereunder, the “Warrant Shares”) of Common Stock. The purchase price of one share of
Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).
 Section 1.
Definitions. Capitalized terms used and not otherwise defined herein shall have the meanings set forth in that certain Securities Purchase Agreement (the “Purchase Agreement”), dated
            , 2016, among the Company and the purchasers signatory thereto. 

Section 2. Exercise. 

(a) Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or
after the Initial Exercise Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing
on the books of the Company) of a duly executed facsimile copy (or e-mail attachment) of the Notice of Exercise in the form annexed hereto. Within the earlier of (i) three (3) Trading Days and (ii) the number of Trading Days comprising the
Standard Settlement Period (as defined in Section 2(d)(i) herein) following the date of exercise as aforesaid, the Holder shall deliver the aggregate Exercise Price for the shares specified in the applicable Notice of Exercise by wire transfer or
cashier’s check drawn on a United States bank unless the cashless exercise procedure specified in Section 2(c) below is specified in the applicable Notice of Exercise. No ink-original Notice of Exercise shall be required, nor shall any
medallion guarantee (or other type of guarantee or notarization) of any Notice of Exercise form be required. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company
until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three (3) Trading Days of the date
the final Notice of Exercise is delivered to the Company. Partial exercises of this Warrant resulting in purchases of a portion of the total number of Warrant Shares available hereunder shall have the effect of lowering the outstanding number of
Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased. The Holder and the Company shall maintain records showing the number of Warrant Shares purchased and the date of such purchases. The
Company shall deliver any objection to any Notice of 

  
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Exercise within one (1) Business Day of receipt of such notice. The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this
paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. 

(b) Exercise Price. The exercise price per share of the Common Stock under this Warrant shall be
$            , subject to adjustment hereunder (the “Exercise Price”). 

(c) Cashless Exercise. If at the time of exercise hereof there is no effective registration statement registering, or
the prospectus contained therein is not available for the issuance of the Warrant Shares to the Holder, then this Warrant may be exercised, in whole or in part, at such time by means of a “cashless exercise” in which the Holder shall be
entitled to receive a number of Warrant Shares equal to the quotient obtained by dividing [(A-B) (X)] by (A), where: 
  

	 	(A)	= the last VWAP immediately preceding the time of delivery of the Notice of Exercise giving rise to the applicable “cashless exercise”, as set forth in the applicable Notice of Exercise (to clarify, the
“last VWAP” will be the last VWAP as calculated over an entire Trading Day such that, in the event that this Warrant is exercised at a time that the Trading Market is open, the prior Trading Day’s VWAP shall be used in this
calculation); 

  

	 	(B)	= the Exercise Price of this Warrant, as adjusted hereunder; and 

  

	 	(X)	= the number of Warrant Shares that would be issuable upon exercise of this Warrant in accordance with the terms of this Warrant if such exercise were by means of a cash exercise rather than a cashless exercise.

 If Warrant Shares are issued in such a cashless exercise, the parties acknowledge and agree that in
accordance with Section 3(a)(9) of the Securities Act, the Warrant Shares shall take on the registered characteristics of the Warrants being exercised. The Company agrees not to take any position contrary to this Section 2(c). 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if
the Common Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as
reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time)), (b) if OTCQB or OTCQX is not a Trading Market, the volume weighted average price of the Common Stock for such date (or
the nearest preceding date) on OTCQB or OTCQX as applicable, (c) if the Common Stock is not then listed or quoted for trading on OTCQB or OTCQX and if prices for the Common Stock are then reported in the “Pink Sheets” published by OTC
Markets Group, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of
Common Stock as determined by an 

  
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independent appraiser selected in good faith by the Holders of a majority in interest of the Securities then outstanding and reasonably acceptable to the Company, the fees and expenses of which
shall be paid by the Company. 
 (d) Mechanics of Exercise. 

 

	 	i.	Delivery of Warrant Shares Upon Exercise. The Company shall cause the Warrant Shares purchased hereunder to be transmitted by the Transfer Agent to the Holder by crediting the account of the Holder’s or
its designee’s balance account with The Depository Trust Company through its Deposit or Withdrawal at Custodian system (“DWAC”) if the Company is then a participant in such system and either (A) there is an effective
registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder or (B) this Warrant is being exercised via cashless exercise, and otherwise by physical delivery of a certificate, registered in the
Company’s share register in the name of the Holder or its designee, for the number of Warrant Shares to which the Holder is entitled pursuant to such exercise to the address specified by the Holder in the Notice of Exercise by the date that is
the earlier of (i) one (1) Trading Day and (ii) the number of Trading Days comprising the Standard Settlement Period after the delivery to the Company of the Notice of Exercise (such date, the “Warrant Share Delivery
Date”). Upon delivery of the Notice of Exercise, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the
date of delivery of the Warrant Shares, provided that payment of the aggregate Exercise Price (other than in the case of a cashless exercise) is received within the earlier of (i) three Trading Days and (ii) the number of Trading Days comprising the
Standard Settlement Period following delivery of the Notice of Exercise. If the Company fails for any reason to deliver to the Holder the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date and the Holder has paid
the related Exercise Price (other than in the case of a Cashless Exercise), the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP of
the Common Stock on the date of the applicable Notice of Exercise), $10 per Trading Day (increasing to $20 per Trading Day on the fifth Trading Day after such liquidated damages begin to accrue) for each Trading Day after such Warrant Share Delivery
Date until such Warrant Shares are delivered or Holder rescinds such exercise. The Company agrees to maintain a transfer agent that is a participant in the FAST program so long as this Warrant remains outstanding and exercisable. As used
herein, “Standard Settlement Period” means the standard settlement period, expressed in a number of Trading Days, on the Company’s primary Trading Market with respect to the Common Stock as in effect on the date of delivery of
the Notice of Exercise. 

  
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 ii. Delivery of New Warrants Upon Exercise. If this Warrant shall
have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the Warrant Shares, deliver to the Holder a new Warrant evidencing the rights of the Holder to
purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant. 

iii. Rescission Rights. If the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant
Shares pursuant to Section 2(d)(i) by the Warrant Share Delivery Date, then the Holder will have the right to rescind such exercise. 

iv. Compensation for Buy-In on Failure to Timely Deliver Warrant Shares Upon Exercise. In addition to any other
rights available to the Holder, if the Company fails to cause the Transfer Agent to transmit to the Holder the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its
broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated
receiving upon such exercise (a “Buy-In”), then the Company shall (A) pay in cash to the Holder the amount, if any, by which (x) the Holder’s total purchase price (including brokerage commissions, if any) for the shares of
Common Stock so purchased exceeds (y) the amount obtained by multiplying (1) the number of Warrant Shares that the Company was required to deliver to the Holder in connection with the exercise at issue times (2) the price at which the sell order
giving rise to such purchase obligation was executed, and (B) at the option of the Holder, either reinstate the portion of the Warrant and equivalent number of Warrant Shares for which such exercise was not honored (in which case such exercise shall
be deemed rescinded) or deliver to the Holder the number of shares of Common Stock that would have been issued had the Company timely complied with its exercise and delivery obligations hereunder. For example, if the Holder purchases Common
Stock having a total purchase price of $11,000 to cover a Buy-In with respect to an attempted exercise of shares of Common Stock with an aggregate sale price giving rise to such purchase obligation of $10,000, under clause (A) of the immediately
preceding sentence the Company shall be required to pay the Holder $1,000. The Holder shall provide the Company written notice indicating the amounts payable to the Holder in respect of the Buy-In and, upon request of the Company, evidence of the
amount of such loss. Nothing herein shall limit a Holder’s right to pursue any other remedies available to it hereunder, at law or in equity including, without limitation, a decree of specific performance and/or injunctive relief with
respect to the Company’s failure to timely deliver shares of Common Stock upon exercise of the Warrant as required pursuant to the terms hereof. 

  
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 v. No Fractional Shares or Scrip. No fractional shares or scrip
representing fractional shares shall be issued upon the exercise of this Warrant. As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash
adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share. 

vi. Charges, Taxes and Expenses. Issuance of Warrant Shares shall be made without charge to the Holder for any
issue or transfer tax or other incidental expense in respect of the issuance of such Warrant Shares, all of which taxes and expenses shall be paid by the Company, and such Warrant Shares shall be issued in the name of the Holder or in such name or
names as may be directed by the Holder; provided, however, that in the event Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment
Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. The Company shall pay all Transfer Agent fees
required for same-day processing of any Notice of Exercise and all fees to the Depository Trust Company (or another established clearing corporation performing similar functions) required for same-day electronic delivery of the Warrant Shares. 

vii. Closing of Books. The Company will not close its stockholder books or records in any manner which prevents
the timely exercise of this Warrant, pursuant to the terms hereof. 
 (e) Holder’s Exercise Limitations. The
Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set
forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons acting as a group together with the Holder or any of the Holder’s Affiliates (such Persons, “Attribution
Parties”)), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below). For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates
and Attribution Parties shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable
upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates or Attribution Parties and (ii) exercise or conversion of the unexercised or nonconverted portion of any other
securities of the Company (including, without 

  
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limitation, any other Common Stock Equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its
Affiliates or Attribution Parties. Except as set forth in the preceding sentence, for purposes of this Section 2(e), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations
promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules
required to be filed in accordance therewith. To the extent that the limitation contained in this Section 2(e) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with
any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether
this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates and Attribution Parties) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation,
and the Company shall have no obligation to verify or confirm the accuracy of such determination. In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act
and the rules and regulations promulgated thereunder. For purposes of this Section 2(e), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A)
the Company’s most recent periodic or annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or the Transfer Agent setting forth the
number of shares of Common Stock outstanding. Upon the written or oral request of a Holder, the Company shall within two Trading Days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding. In any
case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates or Attribution Parties since the date
as of which such number of outstanding shares of Common Stock was reported. The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the
issuance of shares of Common Stock issuable upon exercise of this Warrant. The Holder, upon notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(e), provided that the Beneficial
Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of
this Section 2(e) shall continue to apply. Any increase in the Beneficial Ownership Limitation will not be effective until the 61st day after such notice is delivered to the Company. The
provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(e) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the
intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation. The limitations contained in this paragraph shall apply to a successor holder of this
Warrant.

  
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 Section 3. Certain Adjustments. 

(a) Stock Dividends and Splits. If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend
or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock
issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller
number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of
shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares
issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged. Any adjustment made pursuant to this Section 3(a) shall become effective immediately after
the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or
re-classification. 
 (b) [Reserved]. 

(c) Subsequent Rights Offerings. In addition to any adjustments pursuant to Section 3(a) above, if at any time the
Company grants, issues or sells any Common Stock Equivalents or rights to purchase stock, warrants, securities or other property pro rata to the record holders of any class of shares of Common Stock (the “Purchase Rights”), then the
Holder will be entitled to acquire, upon the terms applicable to such Purchase Rights, the aggregate Purchase Rights which the Holder could have acquired if the Holder had held the number of shares of Common Stock acquirable upon complete exercise
of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date on which a record is taken for the grant, issuance or sale of such Purchase Rights,
or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the grant, issue or sale of such Purchase Rights (provided, however, to the extent that the Holder’s right to participate
in any such Purchase Right would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Purchase Right to such extent (or beneficial ownership of such shares of Common Stock
as a result of such Purchase Right to such extent) and such Purchase Right to such extent shall be held in abeyance for the Holder until such time, if ever, as its right thereto would not result in the Holder exceeding the Beneficial Ownership
Limitation). 

  
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 (d) Pro Rata Distributions. During such time as this Warrant is
outstanding, if the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any
distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) (a “Distribution”), at any time
after the issuance of this Warrant, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common
Stock acquirable upon complete exercise of this Warrant (without regard to any limitations on exercise hereof, including without limitation, the Beneficial Ownership Limitation) immediately before the date of which a record is taken for such
Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution (provided, however, to the extent that the Holder’s
right to participate in any such Distribution would result in the Holder exceeding the Beneficial Ownership Limitation, then the Holder shall not be entitled to participate in such Distribution to such extent (or in the beneficial ownership of any
shares of Common Stock as a result of such Distribution to such extent) and the portion of such Distribution shall be held in abeyance for the benefit of the Holder until such time, if ever, as its right thereto would not result in the Holder
exceeding the Beneficial Ownership Limitation). To the extent that this Warrant has not been partially or completely exercised at the time of such Distribution, such portion of the Distribution shall be held in abeyance for the benefit of the
Holder until the Holder has exercised this Warrant. 
 (e) Fundamental Transaction. If, at any time while this Warrant
is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person, (ii) the Company, directly or indirectly, effects any sale, lease, license,
assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or
another Person) is completed pursuant to which holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock,
(iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property, or (v) the Company, directly or indirectly, in one or more related transactions consummates a stock or share purchase agreement or other business combination (including, without
limitation, a reorganization, recapitalization, spin-off or scheme of arrangement) with another Person or group of Persons whereby such other Person or group acquires more than 50% of the outstanding shares of Common Stock (not including any shares
of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock or share purchase agreement or other business combination) (each a “Fundamental
Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each 

  
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Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation
in Section 2(e) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate
Consideration”) receivable by holders of Common Stock as a result of such Fundamental Transaction for each share of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any
limitation in Section 2(e) on the exercise of this Warrant). For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate
Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any
different components of the Alternate Consideration. If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the
Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction. The Company shall cause any successor entity in a Fundamental Transaction in which the Company is not the survivor (the
“Successor Entity”) to assume in writing all of the obligations of the Company under this Warrant and the other Transaction Documents in accordance with the provisions of this Section 3(e) pursuant to written agreements in form and
substance reasonably satisfactory to the Holder and approved by the Holder (without unreasonable delay) prior to such Fundamental Transaction and shall, at the option of the Holder, deliver to the Holder in exchange for this Warrant a security of
the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant which is exercisable for a corresponding number of shares of capital stock of such Successor Entity (or its parent entity) equivalent
to the shares of Common Stock acquirable and receivable upon exercise of this Warrant (without regard to any limitations on the exercise of this Warrant) prior to such Fundamental Transaction, and with an exercise price which applies the exercise
price hereunder to such shares of capital stock (but taking into account the relative value of the shares of Common Stock pursuant to such Fundamental Transaction and the value of such shares of capital stock, such number of shares of capital stock
and such exercise price being for the purpose of protecting the economic value of this Warrant immediately prior to the consummation of such Fundamental Transaction), and which is reasonably satisfactory in form and substance to the Holder. Upon the
occurrence of any such Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant and the other Transaction Documents
referring to the “Company” shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant and the other Transaction Documents
with the same effect as if such Successor Entity had been named as the Company herein. 
 (f) Calculations. All
calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be. For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date
shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding. 

  
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 (g) Notice to Holder.

i. Adjustment to Exercise Price. Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3,
the Company shall promptly deliver to the Holder by facsimile or email a notice setting forth the Exercise Price after such adjustment and any resulting adjustment to the number of Warrant Shares and setting forth a brief statement of the facts
requiring such adjustment. 
 ii. Notice to Allow Exercise by Holder. If (A) the Company shall declare a dividend (or
any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock
rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any
consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property,
or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be delivered by facsimile or email to the Holder at its last
facsimile number or email address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be
taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption,
rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the
Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure
to deliver such notice or any defect therein or in the delivery thereof shall not affect the validity of the corporate action required to be specified in such notice. To the extent that any notice provided in this Warrant constitutes, or
contains, material, non-public information regarding the Company or any of the Subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K. The Holder shall remain

  
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entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set
forth herein. 
 Section 4. Transfer of Warrant. 

(a) Transferability. This Warrant and all rights hereunder (including, without limitation, any registration rights) are
transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the
Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer. Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the
name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this
Warrant shall promptly be cancelled. Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company unless the Holder has assigned this Warrant in full, in which case, the
Holder shall surrender this Warrant to the Company within three (3) Trading Days of the date the Holder delivers an assignment form to the Company assigning this Warrant full. This Warrant, if properly assigned in accordance herewith, may be
exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.
 (b) New Warrants.
This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the
Holder or its agent or attorney. Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or
Warrants to be divided or combined in accordance with such notice. All Warrants issued on transfers or exchanges shall be dated the initial issuance date of this Warrant and shall be identical with this Warrant except as to the number of Warrant
Shares issuable pursuant thereto. 
 (c) Warrant Register. The Company shall register this Warrant, upon records to be
maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time. The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof
for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary. 

Section 5. Miscellaneous. 

(a) No Rights as Stockholder Until Exercise. This Warrant does not entitle the Holder to any voting rights,
dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(d)(i), except as expressly set forth in Section 3. 

  
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 (b) Loss, Theft, Destruction or Mutilation of Warrant. The Company
covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of
indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and
deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate. 

(c) Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of any action or the expiration
of any right required or granted herein shall not be a Business Day, then, such action may be taken or such right may be exercised on the next succeeding Business Day. 

(d) Authorized Shares.

The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued
Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant. The Company further covenants that its issuance of this Warrant shall constitute full
authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary Warrant Shares upon the exercise of the purchase rights under this Warrant. The Company will take all such reasonable
action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed. The
Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in
accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring
contemporaneously with such issue).
 Except and to the extent as waived or consented to by the Holder, the Company shall not
by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek
to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the
rights of Holder as set forth in this Warrant against 

  
 12 

 
impairment. Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise
immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and
(iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this
Warrant. 
 Before taking any action which would result in an adjustment in the number of Warrant Shares for which this
Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof. 

(e) Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant
shall be determined in accordance with the provisions of the Purchase Agreement. 
 (f) Nonwaiver and
Expenses. No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice the Holder’s rights, powers or remedies. Without limiting
any other provision of this Warrant or the Purchase Agreement, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to the Holder such
amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by the Holder in collecting any amounts due pursuant hereto or in
otherwise enforcing any of its rights, powers or remedies hereunder. 
 (g) Notices. Any notice, request or other
document required or permitted to be given or delivered to the Holder by the Company shall be delivered in accordance with the notice procedures of the Purchase Agreement to such address provided by a Holder to the Company including if such Holder
is not a party to the Purchase Agreement. 
 (h) Limitation of Liability. No provision hereof, in the absence of
any affirmative action by the Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder for the purchase price of any Common Stock
or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 
 (i)
Remedies. The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant. The Company agrees that monetary
damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would
be adequate. 

  
 13 

 (j) Successors and Assigns. Subject to applicable securities laws,
this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder. The provisions of this
Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares. 

(k) Amendment. The provisions of this Warrant and all of the other Warrants issued under the Purchase Agreement may
be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Persons holding Warrants representing not less than a
majority of the Common Stock obtainable upon exercise of all such Warrants then outstanding; provided, that the number of Warrant Shares subject to this Warrant, the Exercise Price, the Initial Exercise Date and the Termination Date may not be
amended, and the right to exercise this Warrant may not be altered or waived, without the written consent of the Holder. Any such amendment shall apply to all Warrants and be binding upon all registered holders of such Warrants whether or not they
have consented (except only for those amendments that, pursuant the preceding sentence, require the written consent of the Holder). 

(l) Severability. Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be
effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the
remainder of such provisions or the remaining provisions of this Warrant. 
 (m) Headings. The headings used in
this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant. 

******************** 

(Signature Page Follows) 

  
 14 

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

			
	SUPERCONDUCTOR TECHNOLOGIES INC.
		
	By:	 	  

		 	 Name:
 Title:

  
 15 

 NOTICE OF EXERCISE 

 

	TO:	SUPERCONDUCTOR TECHNOLOGIES INC.  

 (1) The undersigned hereby elects to purchase
                 Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the
exercise price in full, together with all applicable transfer taxes, if any. 
 (2) Payment shall take the form of (check applicable box):

 [    ] in lawful money of the United States; or 

[    ] if permitted the cancellation of such number of Warrant Shares as is necessary, in accordance with the formula set
forth in subsection 2(c), to exercise this Warrant with respect to the maximum number of Warrant Shares purchasable pursuant to the cashless exercise procedure set forth in subsection 2(c). 

(3) Please issue said Warrant Shares in the name of the undersigned or in such other name as is specified below: 

 

					
		  	 	  	

 The Warrant Shares shall be delivered to the following DWAC Account Number: 

 

					
		  	 	  	
			
		  	 	  	
			
		  	 	  	

 [SIGNATURE OF HOLDER] 
  

	
	 Name of Investing Entity: 
                                         
                                         
                                         
                                         
                                         

Signature of Authorized Signatory of Investing Entity:           
                                         
                                         
                                         
                    

	Name of Authorized Signatory:                               
                                         
                                         
                                         
                                         
  
	Title of Authorized Signatory:                              
                                         
                                         
                                         
                                         
     
	Date:                                     
                                         
                                         
                                         
                                         
                                         
     

 ASSIGNMENT FORM 

(To assign the foregoing warrant, execute 

this form and supply required information. 

Do not use this form to exercise the warrant.) 

FOR VALUE RECEIVED, [            ] all of or
[            ] shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to 
  

			
	                                      
                                         
                 whose address is	  	
		
	                                      
                                         
                                         
       .	  	
		
	                                      
                                         
                                         
         	  	
	
	Dated:                     ,
            
		
	                                    
        Holder’s
Signature:                                      
	  	
		
	                                    
         Holder’s
Address:Exhibit 10.19

 

EXECUTION

 

LOAN AND SECURITY AGREEMENT

 

by and between

 

MORIAH EDUCATION MANAGEMENT LLC

 

as Lender,

 

and

 

GREENWOOD HALL, INC.,

 

and

 

PCS LINK, INC.

 

jointly and severally,

 

as Borrower

 

Dated: October __, 2016

 

     

     

    

 

EXECUTION

 

LOAN AND SECURITY AGREEMENT

 

LOAN AND SECURITY
AGREEMENT, dated as of October 14, 2016, by and among GREENWOOD HALL, INC., a Nevada corporation with a principal
place of business at 12424 Wilshire Boulevard, Suite 1030, Los Angeles, CA 90025 (“Greenwood”), PCS LINK,
INC., a California corporation with a
principal place of business at 12424 Wilshire Boulevard, Suite 1030, Los Angeles, CA 90025 (“PCS” and, together
with Greenwood, jointly and severally, “Borrower”), and MORIAH EDUCATION MANAGEMENT LLC, a Delaware limited
liability company with offices at 1 University Plaza, Hackensack, NJ 07601 (together with its successors and assigns, the “Lender”).

 

RECITALS:

 

WHEREAS, Borrower
desires to enter into a secured revolving loan credit facility with Lender; and

 

WHEREAS, Lender
is willing to establish such credit facility on the terms and conditions hereinafter set forth;

 

NOW, THEREFORE,
in consideration of the foregoing, the mutual covenants and agreements herein contained and other good and valuable consideration,
Lender and Borrower mutually covenant, warrant and agree as follows:

 

SECTION
1. DEFINITIONS AND RULES OF INTERPRETATION AND CONSTRUCTION

 

Specific Terms Defined.
Capitalized terms used herein and not otherwise defined have the following meanings:

 

1.1           “Account
Debtor” or
“account debtor” has the meaning ascribed to such term in the UCC.

 

1.2           “Accounts”
or “accounts” means “accounts” as defined in the UCC, and, in addition, any and all obligations
of any kind at any time due and/or owing to Borrower, whether now existing or hereafter arising, and all rights of Borrower to
receive payment or any other consideration including, without limitation, pursuant to invoices, contract rights, leases, accounts
receivable, general intangibles, choses-in-action, notes, drafts, acceptances, instruments and all other debts, obligations and
liabilities in whatever form owing to Borrower from any Person, including, without limitation, all of Borrower’s rights to
receive payments for goods sold (whether delivered, undelivered, in transit or returned) or assets leased or services rendered,
which may be represented thereby, or with respect thereto, and all property pledged as collateral security for any of the foregoing,
and all rights as an unpaid vendor (including stoppage in transit, replevin or reclamation), and all additional amounts due from
any Account Debtor, whether or not invoiced, together with all Proceeds and products of any and all of the foregoing.

 

1.3           “Advance”
has the meaning as set forth in Section 2.1(b)
hereof.

 

     

     

    

 

1.4           “Affiliate”
means, with respect to any Person, (a) any other Person that, directly or indirectly, controls, is controlled by, or is under common
control with such Person, including any Subsidiary, or (b) any other Person who is a director, manager or officer (i) of such Person,
(ii) of any Subsidiary of such Person or (iii) of any Person described in clause (a) above. For the purposes of this definition,
control of a Person means the power (direct or indirect) to direct or cause the direction of the management or the policies of
such Person, whether through the ownership of any voting securities, by contract or otherwise.

 

1.5           “Agreement”
means this Loan and Security Agreement (including all Exhibits annexed hereto and the Borrower’s Disclosure Schedule) as
originally executed or, if amended, modified, supplemented, renewed, extended or replaced from time to time, as so amended, modified,
supplemented, renewed, extended or replaced.

 

1.6           “Availability”
means, as of any date of determination, the lesser of (i) the Borrowing Base (as set forth in
the most recently delivered Borrowing Certificate), and (ii) Three Million Five Hundred Thousand Dollars ($3,500,000.00).

 

1.7           “Balance
Sheet Date” means May 31, 2016.

 

1.8           “Borrower”
has the meaning set forth in the introductory paragraph hereof.

 

1.9           “Borrower’s
Disclosure Schedule” means the disclosure schedule prepared by Borrower that is being delivered to Lender concurrently
herewith.

 

1.10         “Borrower’s
Premises” means the properties leased by the Borrower located at12424 Wilshire Blvd, Suite
1030, Los Angeles, CA 90025, 2504 Kent Street, Bryan, TX 77802 and 2550 West Union Hills Drive, Suite 201, Phoenix, AZ 85027.

 

1.11         “Borrowing
Base” shall be calculated at any time as the product of the following: (a) revenues scheduled
to be generated to Borrower within three hundred sixty five (365) days from the date of the determination of the Borrowing Base
under the terms of Recurring Revenue Contracts deemed satisfactory to Lender in Lender’s sole and absolute discretion, multiplied
by (b) forty percent (40%).

 

1.12         “Borrowing
Certificate” has the meaning as set forth in Section 2.1(f) hereof.

 

1.13         “Business”
means the provision of education management services to university-level educational institutions.

 

1.14         “Business
Day” means any day other than a Saturday, Sunday or any other day on which banks located in the State of New York
are authorized or required to close under applicable banking laws.

 

1.15         “Change
of Control” has the meaning as set forth in Section 10.1 hereof.

 

1.16         “Chattel
Paper” has the meaning ascribed to such term in the UCC.

 

1.17         “Closing
Date” means the date of this Agreement.

 

1.18         “Closing
Fee” has the meaning as set forth in
Section 3.2 hereof.

 

    	 	2

     

    

 

1.19         “Collateral”
has the meaning as set forth in Section 5.1 hereof.

 

1.20         “Collection
Account” has the meaning set forth in Section
2.1(g) hereof.

 

1.21         “Collection
Days” means
a period equal to the greater of (i) two (2) Business Days after the deposit of Collections into the Collection Account, or (ii)
such longer period as may be required by the financial institution with whom the Collection Account is maintained, in either event
for which interest may be charged on the aggregate amount of such deposits at the Interest Rate or, if applicable, the Default
Interest Rate.

 

1.22         “Collections”
means with respect to any Account, all cash collections on such Account.

 

1.23         “Commercial
Tort Claims” has the meaning ascribed to such
term in the UCC.

 

1.24         “Default
Interest Rate” has the meaning set forth in
Section 3.1(b).

 

1.25         “Deposit
Accounts” has the meaning ascribed to such
term in the UCC.

 

1.26         “Document”
or “document”
has the meaning ascribed to such term in the UCC.

 

1.27         “Domain
Name, URL and IP Address Assignment” means the Domain Name, URL and IP Address Assignment in form and substance
acceptable to Lender as originally executed or, if amended, modified, supplemented, renewed, extended or replaced from time to
time, as so amended, modified, supplemented, renewed, extended or replaced.

 

1.28         “EBITDA”
means, for any period with respect to the Borrower, earnings before deduction for interest charges, taxes, depreciation and amortization
and other non-cash charges, and excluding stock-based compensation and charges.

 

1.29         “Electronic
Chattel Paper” has the meaning ascribed to such term in the UCC.

 

1.30         “Environment”
means all air, surface water, groundwater or land, including, without limitation, land surface or subsurface, including, without
limitation, all fish, wildlife, biota and all other natural resources.

 

1.31         “Environmental
Law” or “Environmental Laws”
means all federal, state and local laws, statutes, ordinances and regulations now or hereafter in effect, and in each case as amended
or supplemented from time to time, and any judicial or administrative interpretation thereof, including any judicial or administrative
order, consent decree or judgment relating to the regulation and protection of human health, safety, the environment and natural
resources (including ambient air, surface water, groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic species
and vegetation).

 

1.32         “Environmental
Liabilities and Costs” means, as to any Person, all liabilities, obligations, responsibilities, remedial actions,
losses, damages, punitive damages, consequential damages, treble damages, costs and expenses (including all fees, disbursements
and expenses of counsel, experts and consultants and costs of investigation and feasibility studies), fines, penalties, sanctions
and interest incurred as a result of any claim or demand by any other Person, whether based in contract, tort, implied or express
warranty, strict liability, criminal or civil statute, including any Environmental Law, permit, order or agreement with any Governmental
Authority or other Person, and which arise from any environmental, health or safety conditions, or a Release or conditions that
are reasonably likely to result in a Release, and result from the past, present or future operations of such Person or any of its
Affiliates.

 

    	 	3

     

    

 

1.33         “Environmental
Lien” means any Lien in favor of any Governmental
Authority for Environmental Liabilities and Costs.

 

1.34         “ERISA”
means the Employee Retirement Income Security Act of 1974, as the same now exists or may from time to time hereafter be amended,
modified, recodified or supplemented, together with all rules, regulations and interpretations thereunder or related thereto.

 

1.35         “Equipment”
means “equipment”, as such term is defined in the UCC, now owned or hereafter acquired by Borrower, wherever
located, and shall include, without limitation, the machinery and equipment set forth on Section 5.4(j) of the Borrower’s
Disclosure Schedule and all other equipment, machinery, furniture, Fixtures, computer equipment, telephone equipment, molds,
tools, dies, partitions, tooling, transportation equipment, all other tangible assets used in connection with the manufacture,
sale or lease of goods or rendition of services, and Borrower’s interests in any leased equipment, and all repairs, modifications,
alterations, additions, controls and operating accessories thereof or thereto, and all substitutions and replacements therefor.

 

1.36         “Equity
Interests” means, with respect to any Person, any and all shares, rights to purchase, options, warrants, general,
limited or limited liability partnership interests, membership interests, units, participations or other equivalents of or interest
in (regardless of how designated) equity of such Person, whether voting or nonvoting, including common stock, preferred stock,
convertible securities or any other “equity security” (as such term is defined in Rule 3a11-1 of the General Rules
and Regulations promulgated by the SEC (or any successor thereto) under the 1934 Act).

 

1.37         “Event
of Default” means the occurrence or existence
of any event or condition described in Section 11 of this Agreement.

 

1.38         “Existing
Insurance Policies” has the meaning set forth in Section 5.4(q) hereof.

 

1.39         “Financial
Statements” has the meaning as set forth in
Section 8.9 hereof.

 

1.40         “Financing
Statements” means the Uniform Commercial Code
UCC-1 Financing Statements and Uniform Commercial Code UCC Financing Statement Amendments to be filed with applicable Governmental
Authorities of each State or Commonwealth or political subdivisions thereof pursuant to which Lender shall perfect its security
interest in the Collateral.

 

1.41         “Fiscal
Year” means the twelve (12) month period ending on August 31.

 

1.42         “Fixtures”
has the meaning ascribed to such term in the UCC.

 

1.43         “GAAP”
means generally accepted accounting principles in effect in the United States of America at the time of any determination, and
which are applied on a consistent basis. All accounting terms used in this Agreement which are not expressly defined in this Agreement
shall have the meanings given to those terms by GAAP, unless the context of this Agreement otherwise requires.

 

    	 	4

     

    

 

1.44         “General
Intangibles” has the meaning ascribed to such
term in the UCC.

 

1.45         “Goods”
has the meaning ascribed to such term in the UCC.

 

1.46         “Governmental
Authority”
or “Governmental
Authorities” means any federal, state, county or municipal governmental agency, court, tribunal, department, instrumentality,
board, commission, officer, official or entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government, including, without limitation, the FDA.

 

1.47         “Guarantee
means the Guarantee of the Guarantor as originally executed or, if amended, modified, supplemented, renewed, extended or replaced
from time to time, as so amended, modified, supplemented, renewed, extended or replaced.

 

1.48         “Guarantor”
means John Robert Hall, an individual.

 

1.49         “Hazardous
Substances” means (a) substances that are defined or listed in, or otherwise classified
pursuant to, any applicable laws or regulations as “hazardous substances,” “hazardous materials,” “hazardous
wastes,” “toxic substances,” or any other formulation intended to define, list, or classify substances by reason
of deleterious properties such as ignitability, corrosivity, reactivity, carcinogenicity, reproductive toxicity, or “EP toxicity,”
(b) oil, petroleum, or petroleum derived substances, natural gas, natural gas liquids, synthetic gas, drilling fluids, produced
waters, and other wastes associated with the exploration, development, or production of crude oil, natural gas, or geothermal resources,
(c) any flammable substances or explosives or any radioactive materials, and (d) asbestos in any form or electrical equipment that
contains any oil or dielectric fluid containing levels of polychlorinated biphenyls in excess of 50 parts per million.

 

1.50         “Indebtedness”
means, with respect to any Person, all of the obligations of such Person which, in accordance with GAAP, should be classified upon
such Person’s balance sheet as liabilities, or to which reference should be made by footnotes thereto, including without
limitation, with respect to Borrower, in any event and whether or not so classified, including the following:

 

(a)          all
debt and similar monetary obligations of a Person, whether direct or indirect;

 

(b)          all
obligations of a Person arising or incurred under or in respect of any guaranties (whether direct or indirect) of such Person with
respect to the Indebtedness of any other Person; and

 

(c)          all
obligations of a Person arising or incurred under or in respect of any Lien upon or in any property owned by Borrower that secures
Indebtedness of another Person, even though such Person has not assumed or become liable for the payment of such indebtedness.

 

1.51         “Instruments”
has the meaning ascribed to such term in the UCC.

 

    	 	5

     

    

 

1.52         “Intellectual
Property” means all of the following intellectual property used in the conduct of Borrower’s Business: (a) inventions,
processes, techniques, discoveries, developments and related improvements, whether or not patentable; (b) United States patents,
patent applications, divisionals, continuations, reissues, renewals, registrations, confirmations, re-examinations, extensions
and any provisional applications, of any such patents or patent applications, and any foreign or international equivalent of any
of the foregoing; (c) unregistered , United States registered or pending trademark, trade dress, service mark, service name, trade
name, brand name, logo, domain name, or business symbol and any foreign or international equivalent of any of the foregoing; (d)
work specifications, software (including object and source code listing) and artwork; (e) technical, scientific and other know-how
and information, trade secrets, methods, processes, practices, formulas, designs, assembly procedures, specifications owned or
used by Borrower; (f) copyrights; (g) work for hire; (h) customer and mailing lists; (i) any and all rights of the Borrower to
its trade names, including, without limitation, the names “Greenwood Hall” and “Greenwood & Hall” or
any derivations thereof, and Borrower’s entire customer list and database and all assets used or useful by Borrower in the
conduct of its Business over the internet or in any electronic medium, including any websites, URLs or domain names owned by Borrower;
and (j) all goodwill associated with the items described in clauses (a) through (i).

 

1.53         “Interest
Rate” means the Revolver Interest Rate.

 

1.54         “Inventory”
has the meaning ascribed to such term in the UCC, now owned or hereafter acquired by Borrower, wherever located.

 

1.55         “Investment
Property” has the meaning ascribed to such term in the UCC.

 

1.56         [INTENTIONALLY
OMITTED]

 

1.57         “Lender”
has the meaning set forth in the introductory paragraph hereof.

 

1.58         “Letter-of-Credit
Rights” means “letter-of-credit rights” as such term is defined in the UCC, including rights to payment
or performance under a letter of credit, whether or not the beneficiary thereof has demanded or is entitled to demand payment or
performance.

 

1.59         “Lien”
or “lien”
means any mortgage, deed of trust, pledge, security interest, hypothecation, assignment, lien (statutory or other, including, without
limitation, liens imposed by any Governmental Authority), claim, charge or other encumbrance of any kind or nature whatsoever (including,
without limitation, pursuant to any conditional sale or other title retention agreement, any financing lease having substantially
the same economic effect as any of the foregoing, and the filing of any financing statement under the UCC or comparable law of
any jurisdiction to evidence any of the foregoing) on personal or real property or fixtures.

 

1.60         “Loans”
means the aggregate principal amounts advanced to, made available to, or paid for the benefit of, Borrower as set forth in this
Agreement and the other Loan Documents.

 

1.61         “Loan
Documents” means this Agreement, the Revolving Loan Note, the Guarantee, the Subordination Agreements, the Patent
and Trademark Security Agreement, the Stock Pledge Agreement, the Lockbox Agreement, the Warrants and any and all other
agreements, notes, documents, mortgages, financing statements, guaranties, intercreditor agreements, subordination agreements,
certificates and such other documents and instruments executed and/or delivered at any time by Borrower or any other Person to
Lender pursuant to and in connection with the Loans and this Agreement, as the same may be amended, modified, supplemented, renewed
or extended from time to time.

 

    	 	6

     

    

 

1.62         “Lockbox”
shall have the meaning assigned to such term in the Lockbox Agreement.

 

1.63         “Lockbox
Agent” means the person serving from time to time as the Lockbox Agent under the Lockbox Agreement.

 

1.64         “Lockbox
Agreement” means that certain Lockbox Agreement dated as of the date hereof, among Lender, the Borrower and the Lockbox
Agent.

 

1.65         “LTM
EBITDA” of Borrower means, as of any date of measurement, Borrower’s consolidated EBITDA for the prior twelve (12)
consecutive whole calendar months ending on the last day of the whole calendar month preceding such date of measurement, as certified
by a Responsible Officer of Borrower.

 

1.66         “Material
Adverse Effect” means a material adverse effect on (a) the Business, assets, liabilities, financial condition,
results of operations or business prospects of any Borrower, (b) the ability of any Borrower or any Guarantor to perform its
obligations under any Loan Document to which it is a party, (c) the value of the Collateral or the rights of Lender therein,
(d) the validity or enforceability of any of the Loan Documents, (e) the rights and remedies of Lender under any of such Loan
Documents, or (f) the timely payment of the principal of or interest on the Loans or other amounts payable in connection therewith.
All determinations of materiality shall be made by the Lender in its sole and absolute judgment.

 

1.67         “Material
Contract” means any contract or other arrangement (including Loan Documents), including, without limitation, the
Recurring Revenue Contracts, whether written or oral, to which Borrower is a party as to which the breach, nonperformance, cancellation
or failure to renew by any party thereto could have a Material Adverse Effect or could result in a liability to Borrower in excess
of $130,000.

 

1.68         “Maturity
Date” means the earlier of (i) October 14, 2018 and (ii) the date Lender may exercise any of its remedies pursuant
to the terms hereof.

 

1.69         “Maximum
Credit” shall mean, subject to Availability, Three Million Five Hundred Thousand Dollars ($3,500,000) as of the
date hereof, which Maximum Credit shall automatically be reduced by $29,166.67 per month, commencing April 1, 2017.

 

1.70         “1934
Act” means the Securities Exchange Act of 1934, as amended.

 

1.71         “Obligations”
means all obligations, liabilities and indebtedness of every kind, nature and description owing by Borrower to Lender pursuant
to the Loan Documents, including, without limitation, principal, interest, repurchase obligations (including the Put Option), charges,
fees, costs and expenses, however evidenced, whether as principal, surety, endorser, guarantor or otherwise, whether now existing
or hereafter arising, whether arising before, during or after the Term or after the commencement of any case with respect to Borrower
under the United States Bankruptcy Code or any similar statute (including, without limitation, the payment of interest and other
amounts which would accrue and become due but for the commencement of such case), whether direct or indirect, absolute or contingent,
joint or several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured.

 

    	 	7

     

    

 

1.72         “Organizational
Documents” means, in the case of a corporation, its Articles of Incorporation, Certificate
of Incorporation and By-Laws; in the case of a general partnership, its Articles of Partnership and any partnership agreement;
in the case of a limited partnership, its Articles of Limited Partnership and any partnership agreement; in the case of a limited
liability company, its Articles of Organization and Operating Agreement or Regulations, if any; in the case of a limited liability
partnership, its Articles of Limited Liability Partnership; or alternatively, in each case, the legal equivalent thereof in the
jurisdiction of its organization, together with all other formation or governing documents, schedules, exhibits, amendments, addendums,
modifications, replacements, additions, or restatements of the foregoing, which are in effect.

 

1.73         “Overadvance”
has the meaning as set forth in Section 2.1(d) hereof.

 

1.74         “Patent
and Trademark Security Agreement” means the Patent and Trademark Security Agreement as originally executed or, if amended,
modified, supplemented, renewed, extended or replaced from time to time, as so amended, modified, supplemented, renewed, extended
or replaced, and all documents executed in connection with the Patent and Trademark Security Agreement.

 

1.75         “Payment
Intangibles” has the meaning ascribed to such term in the UCC.

 

1.76         “Permitted
Actions” means any or all of the following with respect to the Collateral: inspect;
assemble; appraise; display, sever; remove; maintain; use or operate; prepare for sale or lease; process or repair; and/or lease,
transfer and/or sell any or all of the Collateral by private sale or public disposition from any of the locations where any Collateral
may be located.

 

1.77         “Permitted
Encumbrances” means Liens granted to Lender or Lender’s Affiliates.

 

1.78         “Permitted
Indebtedness” means, except with respect to those certain trade accounts payable listed in Section 9.3 of Borrower’s
Disclosure Schedule, (i) the unsecured Indebtedness consisting of accounts payable or trade payables of the Borrower incurred
in the ordinary course of Business and repayable in accordance with customary trade practices, and (ii) Indebtedness secured by
Permitted Encumbrances.

 

1.79         “Person”
or “person”
means, as applicable, any individual, sole proprietorship, partnership, corporation, limited liability company, limited liability
partnership, business trust, unincorporated association, joint stock corporation, trust, joint venture or other entity or any Governmental
Authority.

 

1.80         “Proceeds”
has the meaning ascribed to such term in the UCC and shall also include, but not be limited to, (a) any and all proceeds of any
and all insurance policies (including, without limitation, life insurance, casualty insurance, business interruption insurance
and credit insurance), indemnity, warranty or guaranty payable to Borrower from time to time with respect to any of the Collateral
or otherwise, (b) any and all payments (in any form whatsoever) made or due and payable to Borrower from time to time in connection
with any requisition, confiscation, condemnation, seizure or forfeiture of all or any part of the Collateral by any governmental
body, authority, bureau or agency or any other Person (whether or not acting under color of Governmental Authority) and (c) any
and all other amounts from time to time paid or payable under or in connection with any of the Collateral.

 

1.81         “Promissory
Note” has the meaning ascribed to such term in the UCC.

 

    	 	8

     

    

 

1.82         “Put
Option” has the meaning set forth in the Seven-Year Warrant, of even
date herewith, issued by the Borrower to Lender, for the purchase of 8,125,000 shares of Borrower’s capital stock described
therein.

 

1.83         “Recurring
Revenue Contracts” means written contracts between Borrower and unaffiliated third parties generating scheduled revenue
streams to Borrower described in detail therein in consideration for Borrower’s ongoing rendition of services to such third
parties, which contracts shall be utilized in the determination of the Borrowing Base.

 

1.84         “Release”
means any spilling, leaking, pumping, pouring, emitting, emptying, discharging, injecting, escaping, leaching, dumping, or disposing
of a Hazardous Substance into the Environment.

 

1.85         “Reserves”
means, as of any date of determination, such amounts as Lender may from time to time establish
and revise in good faith reducing the amount of the Revolving Loan Commitment (a) to reflect events, conditions, contingencies
or risks which, as determined by Lender in good faith, do or may materially and adversely affect either (i) the Collateral or
any other property which is security for the Obligations or its value, (ii) the assets, Business or prospects of Borrower, (iii)
the security interests and other rights of Lender in the Collateral (including the enforceability, perfection and priority thereof),
or (iv) Borrower’s ability to perform its Obligations under the Loan Documents; or (b) in respect of any state of facts
which Lender determines in good faith constitutes an Event of Default or may, with notice or passage of time or both, constitute
an Event of Default.

 

1.86         “Responsible
Officer” means the Chief Executive Officer or Chief Financial Officer of Greenwood.

 

1.87         “Revolver
Interest Rate” has the meaning set forth in Section 3.1(a).

 

1.88         “Revolving
Loan Commitment” means, at any given time, the difference between (i) Availability
and (ii) the sum of the Reserves plus outstanding Obligations.

 

1.89         “Revolving
Loan Note” means the “Secured Promissory Note (Revolving Loans)” delivered
by Borrower to Lender, of even date herewith, as may be amended, restated, modified or supplemented from time to time .

 

1.90         “Revolving
Loan Prepayment Fee” has the meaning set forth in Section 4.2(c) hereof.

 

1.91         “Revolving
Loans” has the meaning as set forth in Section 2.1(a) hereof.

 

1.92         “SEC”
means the United States Securities and Exchange Commission.

 

1.93         “SEC
Reports” means all periodic and other reports filed by the Borrower with the SEC pursuant
to the 1934 Act prior to and after the Closing Date and including the information and documents (other than exhibits) incorporated
therein by reference.

 

1.94         “Securities”
has the meaning ascribed to such term in the UCC.

 

1.95         “Software”
has the meaning ascribed to such term in the UCC.

 

    	 	9

     

    

 

1.96         “Stock
Pledge Agreement” mean the Stock Pledge Agreement between Lender and Greenwood with respect
to 100% of the capital stock of PCS, as originally executed or, if amended, modified, supplemented, renewed, extended or replaced
from time to time, as so amended, modified, supplemented, renewed, extended or replaced.

 

1.97         “Subordination
Agreements” means the agreements, in form and substance acceptable to Lender, between
Lender and each of Colgan Financial Group, Lincoln Park Capital, Redwood Fund LP and First Fire Global whereby each such entity,
among other matters, subordinates its Lien in the Collateral and certain rights to payment to the Lien and rights of payment in
favor of Lender.

 

1.98        “Subsidiary”
means, as to any Person, a corporation, limited liability company or other entity with respect to which more than fifty (50%) percent
of the outstanding Equity Interests of each class having voting power is at the time owned by such Person or by one or more Subsidiaries
of such Person or by such Person.

 

1.99        “Tangible
Chattel Paper” has the meaning ascribed to
such term in the UCC.

 

1.100      “Tax”
has the meaning set forth in Section 8.12(c).

 

1.101      “Tax
Deduction” has the
meaning set forth in Section 8.12(c).

 

1.102      “Term”
has the meaning set forth in Section 4.1.

 

1.103      “UCC”
means the Uniform Commercial Code as presently enacted in
New York (or any successor legislation thereto), and as the same may be amended from time to time, and the state counterparts
thereof as may be enacted in such states or jurisdictions where any of the Collateral is located or held.

 

1.104      “United States Bankruptcy Code” means Title 11 of the United States Code, as the same may be amended from time
to time, and any successor statute.

 

1.105      “Warrants” means (i) a Five-Year Warrant, of even date herewith, issued by the Borrower to Lender, for the purchase
of 8,125,000 shares of Borrower’s capital
stock described therein, at an exercise price of $0.14 per share, and (ii) a Seven-Year Warrant, of even date herewith, issued
by the Borrower to Lender, for the purchase of 3,500,000 shares of Borrower’s capital stock described therein, at an exercise
price of $0.12 per share.

 

1.106      Rules
of Interpretation and Construction. In this Agreement
unless the context otherwise requires:

 

(a)          All
terms used herein which are defined in the UCC shall have the meanings given therein unless otherwise defined in this Agreement;

 

(b)          Sections
mentioned by number only are the respective Sections of this Agreement as so numbered;

 

    	 	10

     

    

 

(c)          Words
importing a particular gender shall mean and include the other gender and words importing the singular number mean and include
the plural number and vice versa;

 

(d)          Words
importing persons shall mean and include firms, associations, partnerships (including limited partnerships), societies, trusts,
corporations, limited liability companies or other legal entities, including public or governmental bodies, as well as natural
persons;

 

(e)          Each
reference in this Agreement to a particular person shall be deemed to include a reference to such person's successors and permitted
assigns;

 

(f)           Any
headings preceding the texts of any Section of this Agreement, and any table of contents or marginal notes appended to copies hereof
are intended, solely for convenience of reference and shall not constitute a part of this Agreement, nor shall they affect its
meaning, construction or effect;

 

(g)          If
any clause, provision or section of this Agreement shall be ruled invalid or unenforceable by any court of competent jurisdiction,
such holding shall not invalidate or render unenforceable any of the remaining provisions thereof;

 

(h)          The
terms “herein”, “hereunder”, “hereby”, “hereto”, and any similar terms as used
in this Agreement refer to this Agreement; the term “heretofore” means before the date of execution of this Agreement;
and the term “hereafter” shall mean after the date of execution of this Agreement;

 

(i)           If
any clause, provision or section of this Agreement shall be determined to be apparently contrary to or conflicting with any other
clause, provision or section of this Agreement, then the clause, provision or section containing the more specific provisions shall
control and govern with respect to such apparent conflict;

 

(j)           Unless
otherwise specified, (i) all accounting terms used herein or in any Loan Document shall be interpreted in accordance with GAAP,
(ii) all accounting determinations and computations hereunder or thereunder shall be made in accordance with GAAP and (iii) all
financial statements required to be delivered hereunder or thereunder shall be prepared in accordance with GAAP;

 

(k)          An
Event of Default that occurs shall exist or continue or be continuing unless such Event of Default is waived by Lender or cured
in accordance with the terms of this Agreement;

 

(l)           The
word “and” when used from time to time herein shall mean “or” or “and/or” if such meaning is
expansive of the rights or interests of Lender in the given context.

 

(m)         All
references herein and in the other Loan Documents to times of day shall refer to New York City time, unless otherwise specified
to the contrary; and

 

(n)          No
provision of this Agreement shall be construed against or interpreted to the disadvantage of any party hereto by reason of such
party or his or its counsel having, or being deemed to have, structured or drafted such provision.

 

    	 	11

     

    

 

SECTION
2. LOANS

 

2.1         Revolving
Loans.

 

(a)          Lender
may, subject to the terms and conditions contained herein and the satisfaction of the closing and funding conditions set forth
herein, make revolving loans to Borrower (“Revolving Loans”) prior to the Maturity Date in amounts requested
by Borrower from time to time, but not more than two times each month, provided that the requested Revolving Loan would not cause
the outstanding Revolving Loans to exceed the Revolving Loan Commitment existing immediately prior to the making of the requested
Revolving Loan. Subject to the terms and conditions hereof, Borrower may borrow, repay and reborrow Revolving Loans, as set forth
in this Agreement.

 

(b)          Revolving
Loans may be drawn in tranches of not less than Five Hundred Thousand Dollars ($500,000) (each drawing, an “Advance”
and collectively, the “Advances”). The obligation of Borrower to repay the Revolving Loans shall be evidenced
by the Revolving Loan Note.

 

(c)          The
principal amount of the Revolving Loans shall be payable in accordance with the terms of the Revolving Loan Note.

 

(d)          Notwithstanding
any provision herein to the contrary, Borrower shall repay the Revolving Loans immediately at any time and from time to time in
an amount by which the outstanding balance of the Revolving Loans exceeds the Revolving Loan Commitment, as determined by Lender
(an “Overadvance”).

 

(e)          Borrower
may voluntarily prepay the entire unpaid principal sum of the Revolving Loans without premium or penalty, except as set forth in
Section 4.2 hereof.

 

(f)           Whenever
Borrower desires an Advance, Borrower will notify Lender by delivery of a borrowing certificate certified by a Responsible Officer
(“Borrowing Certificate”) no later than two (2) Business Days prior to the date of the proposed Advance, setting
forth in reasonable detail, as of the date set forth on the Borrowing Certificate, (A) a calculation of Borrower’s year-to-date
EBITDA or LTM EBITDA, as applicable, and (B) an accounts receivable aging report and a report of the schedule of payments due and
owing under each Recurring Revenue Contract, in form and substance acceptable to Lender, which Borrowing Certificate shall in all
respects be subject to Lender’s review and approval. In addition, Borrower shall furnish Lender with a Borrowing Certificate
weekly on each Tuesday during the Term setting forth such information, irrespective of whether Borrower has then requested an Advance.
Lender shall be entitled to rely on any facsimile or electronic transmission of a Borrowing Certificate given by a person who Lender
reasonably believes to be a Responsible Officer, and Borrower shall indemnify and hold Lender harmless for any damages or loss
suffered by Lender as a result of such reliance. The funding of each Advance shall be made in accordance with the applicable Borrowing
Certificate as approved by Lender.

 

    	 	12

     

    

 

(g)          All
Proceeds of Borrower’s sales and all other proceeds of Accounts and other Collateral shall be deposited by Account Debtors
in accordance with Borrower’s irrevocable payment instruction approved by Lender in writing, in the Lockbox account designated
by and/or maintained in the name of Borrower pursuant to the Lockbox Agreement or pursuant to such other deposit account control
agreement(s) that have been approved in writing by Lender in Lender’s sole discretion directed to Lender and deposited in
an account at a financial institution selected by Lender (such account referred to as the “Collection Account”).
Once instituted, such Lockbox system shall remain in effect unless Lender directs otherwise. Borrower shall bear all risk of loss
of any funds deposited into such account except to the extent such loss is caused by the gross negligence or the willful misconduct
of Lender. In connection therewith, Borrower shall execute the Lockbox Agreement and such other lockbox and/or bank account agreements
as Lender shall reasonably specify from time to time. Any collections or other Collateral proceeds received by Borrower from any
source whatsoever shall be held in trust for the benefit of Lender and immediately remitted to Lender in kind.

 

(h)          In
the event that Borrower receives any Collections that should have been sent to the Collection Account, Borrower shall, promptly
upon receipt and in any event within one Business Day of receipt, forward such Collections directly to Lender or otherwise in accordance
with Lender’s instruction, in the form received, and promptly notify Lender of such event. Until so forwarded, such Collections
shall be held in trust for the benefit of Lender.

 

(i)           Subject
to charges for Collection Days, all amounts deposited into the Collection Account will, for the purposes of calculating the Borrowing
Base and interest, be credited to the aggregate outstanding amount of the Revolving Loans on the date of deposit in the Collection
Account. No checks, drafts or other instruments received by Lender shall constitute final payment to Lender unless and until such
instruments have actually been collected.

 

(j)           All
payments of principal, interest, fees, costs, expenses and other charges provided for in this Agreement or any other Loan Document
that have not been paid to Lender on the due dates thereof, shall be added to the principal amount of the Revolving Loans, and
shall bear interest at the Default Interest Rate.

 

(k)          Application
of Collections and Proceeds of Collateral:

 

1.          So
long as no Event of Default shall have occurred and remain outstanding, Lender agrees to apply all Collections, if any, as follows:
first, to Overadvances; second, to all fees, costs and expenses; third, to accrued and unpaid interest; fourth, to matured and
unpaid Obligations; and fifth, the principal amount of the Revolving Loans.

 

2.          If
an Event of Default shall have occurred and be continuing, Lender may apply Collections, any other proceeds of Collateral and all
other payments received by Lender to the payment of the Obligations in such manner and in such order as Lender may elect in its
sole discretion.

 

2.2          Maximum
Credit. The aggregate principal amount of the Revolving Loans shall not exceed the amount of the Maximum Credit, as reduced
on a monthly basis in accordance with the definition of “Maximum Credit” set forth herein.

 

2.3          Reserves.
Without limiting any other rights and remedies of Lender hereunder or under the other Loan Documents, the Availability shall be
subject to Lender's continuing right, in its sole discretion in good faith, from time to time, to withhold a Reserve from Availability
to reflect, among other things, conditions, contingencies or risks that may affect the Collateral or the financial condition of
the Borrower.

 

    	 	13

     

    

 

2.4          Use
of Proceeds. Borrower shall use the proceeds of the Loans solely for (a) payment in full of any other Indebtedness secured
by the Collateral and the payment of other indebtedness set forth on Exhibit 2.4 annexed hereto, (b) payment of the fees
set forth in Section 3.2, (c) outstanding closing expenses, and (d) ordinary course working capital purposes in its Business.

 

2.5          Repayment.
Borrower shall repay the Loans and other Obligations in accordance with the Revolving Loan Note and this Agreement.

 

2.6          ACH.
In order to satisfy Borrower’s payment of amounts due under the Loans and all fees, expenses and charges with respect thereto
that are due and payable under this Agreement or any other Loan Document, Borrower hereby irrevocably authorizes the Lender to
initiate manual and automatic electronic (debit and credit) entries through the Automated Clearing House or other appropriate electronic
payment system (“ACH”) to all deposit accounts maintained by Borrower, wherever located. At the request of the
Lender, Borrower shall complete, execute and deliver to the institution set forth below (with a copy to the Lender) any ACH agreement,
voided check, information and/or direction letter reasonably necessary to so instruct Borrower’s depository institution.
Borrower (i) shall maintain in all respects this ACH arrangement; (ii) shall not change depository institutions without
Lender’s prior written consent, and if consent is received, shall immediately execute similar ACH instruction(s), and (iii) waives
any and all claims for loss or damage arising out of debits or credits to/from the depository institution, whether made properly
or in error. Borrower has so communicated with and instructed the following institution(s):

 

Bank Name: Union
Bank

Address: 2001
Wilshire Blvd. Santa Monica, CA 90403

ABA#: 122000496

Account #: 0071125413

Swift Code: BOFCUS33MPK

Contact: Shreekal
Singh

Phone: 310-453-5397

Fax: 323-453-6113

 

SECTION
3.  INTEREST, FEES AND CHARGES

 

3.1          Interest.

 

(a)          Interest
on the unpaid principal balance of Revolving Loans (the “Revolver Interest Rate”) shall be computed on the basis
of the actual number of days elapsed and a year of 360 (360) days and shall accrue on the outstanding principal balance of Advances
at an annual rate equal to the greater of (i) the sum of (A) the “Prime Rate” as reported in the “Money
Rates” column of The Wall Street Journal, adjusted as and when such Prime Rate changes, plus (B) Seven and Three Quarters
Percent (7.75%), or (ii) Ten Percent (10.0%), but in no event in excess of Fourteen Percent (14%) per annum unless an Event of
Default has occurred and is continuing. All accrued interest on the Revolving Loans, including interest charges for Collection
Days, if any, shall be due and payable in arrears (x) prior to the Maturity Date, monthly on the first Business Day of each month,
(y) in full on the Maturity Date and (z) on demand after the Maturity Date.

 

    	 	14

     

    

 

(b)          Following
and during the continuation of an Event of Default, interest on the unpaid principal balance of the Revolving Loans shall accrue
at a rate equal to Five Percent (5%) in excess of the Revolver Interest Rate, adjusted as and when such Revolver
Interest Rate changes (the “Default Interest Rate”).

 

3.2          Closing
Fee. Borrower shall pay Lender, or Lender’s designee, a closing fee equal to One Hundred Thirty Four Thousand Seven
Hundred Fifty Dollars ($134,750) (“Closing Fee”). Such Closing Fee shall be deemed fully earned on the date
hereof, shall be paid on the Closing Date from Loan proceeds, and shall not be subject to rebate or proration for any reason.

 

3.3          Other
Fees and Expenses. Borrower shall pay, on Lender's demand, all costs, expenses, filing fees and taxes payable in connection
with the preparation, execution, delivery, recording, administration, collection, liquidation, defense and enforcement of the
Loan Documents, Lender's rights in the Collateral, and all other existing and future agreements or documents contemplated herein
or related hereto, including any amendments, waivers, supplements or consents which may now or hereafter be made or entered into
in respect hereof, or in any way involving claims or defenses asserted by Lender or claims or defenses against Lender asserted
by Borrower or any third party directly or indirectly arising out of or related to the relationship between Borrower and Lender,
including, but not limited to the following, whether incurred before, during or after the Term or after the commencement of any
case with respect to Borrower under the United States Bankruptcy Code or any similar or successor statute: (a) all costs and expenses
of filing or recording (including UCC Financing Statement and, if applicable, mortgage filing fees); (b) all title insurance and
other insurance premiums, appraisal fees, fees incurred in connection with any environmental report and audit, survey and search
fees and charges; (c) all costs and expenses of onsite visits by Lender and its representatives, including travel and lodging
expenses, (d) all fees relating to the wire transfer of loan proceeds and other funds and fees for returned checks; and (e) all
costs, fees and disbursements of counsel to Lender. If any fees, costs or charges payable to Lender hereunder are not paid when
due, such amounts shall be added to the principal amount of the Obligations and accrue interest at the Default Interest Rate until
paid.

 

3.4          Savings
Clause. It is intended that the Interest Rate, the Convertible Interest Rate and the Default Interest Rate shall never exceed
the maximum rate, if any, which may be legally charged in the State of New York for loans made to corporations (the “Maximum
Rate”). If the provisions for interest contained in the Revolving Loan Note would result in a rate higher than the Maximum
Rate, the interest shall nevertheless be limited to the Maximum Rate and any amounts which may be paid toward interest in excess
of the Maximum Rate shall be applied to the reduction of principal, or, at the option of Lender, returned to the Borrower.

 

SECTION
4. TERM.

 

4.1          Term.
This Agreement shall continue until all Obligations shall have been indefeasibly paid in full (the “Term”).

 

4.2          Early
Termination; Loan Prepayment Fees.

 

(a)          Lender
shall have the right to accelerate payment of the Obligations at any time upon or after the occurrence of an Event of Default.

 

    	 	15

     

    

 

(b)          Except
as set forth in Section 4.2(c) hereof, the Loans shall be voluntarily prepayable by Borrower without premium or penalty.

 

(c)          Borrower
may voluntarily prepay the entire unpaid principal sum of the Revolving Loans on not less than fifteen (15) days prior written
notice to Lender, provided, however, that, (i) such prepayment is no less than the amount of the then-outstanding aggregate principal
sum of all Revolving Loans and all accrued and unpaid interest thereon, (ii) as part of such prepayment, Borrower shall pay Lender
all other amounts due to Lender pursuant to the Revolving Loan Note, this Agreement and other Loan Documents, and (iii) in the
event Borrower makes such prepayment on or before April 30, 2017, then Borrower shall pay to Lender an amount equal to the Revolving
Loan Prepayment Fee. “Revolving Loan Prepayment Fee” shall be an amount equal to three percent (3%) of the then-outstanding
principal sum of all Revolving Loans. The Revolving Loan Prepayment Fee is intended to compensate Lender for committing and deploying
funds for Borrower’s Loans pursuant to the Agreement and for Lender’s loss of investment of such funds in connection
with such early termination, and is not intended as a penalty.

 

(d)          The
Revolving Loan Prepayment Fee also shall be due and payable by Borrower to Lender if Lender accelerates the payment of the Obligations
on or before April 30, 2017 due to the occurrence of an Event of Default.

 

SECTION
5. COLLATERAL.

 

5.1          Security
Interests in Borrower’s Assets. As collateral security for the payment and performance of the Obligations, Borrower hereby
grants and conveys to Lender a first priority continuing security interest in and Lien upon all now owned and hereafter acquired
property and assets of Borrower and the Proceeds and products thereof including, without limitation, property described in this
Section 5.1 and all property of Borrower now or hereafter held or possessed by Lender (which property, assets and Proceeds, together
with all other collateral security for the Obligations now or hereafter granted to or otherwise acquired by Lender, are referred
to herein collectively as the “Collateral”):

 

(a)          Accounts;

 

(b)          Chattel
Paper;

 

(c)          Commercial
Tort Claims;

 

(d)          Deposit
Accounts;

 

(e)          Documents;

 

(f)      
    Domain names;

 

(g)          Electronic
Chattel Paper;

 

(h)          Equipment;

 

(i)   
       Fixtures;

 

    	 	16

     

    

 

(j)          General
Intangibles (including, without limitation http://www.greenwoodhall.com);

 

(k)          Goods;

 

(l)    
      Instruments;

 

(m)         Inventory;

 

(n)          Investment
Property;

 

(o)          Letter-of-Credit
Rights;

 

(p)          Payment
Intangibles;

 

(q)          Promissory
Notes;

 

(r)    
      Software;

 

(s)          Tangible
Chattel Paper;

 

(t)      
    Securities (whether certificated or uncertificated);

 

(u)          warehouse
receipts;

 

(v)     
    cash monies;

 

(w)         Tax
and duty refunds;

 

(x)          Intellectual
Property;

 

(y)          All
present and future books and records relating to any of the above including, without limitation, all present and future books of
account of every kind or nature, purchase and sale agreements, invoices, ledger cards, bills of lading and other shipping evidence,
statements, correspondence, memoranda, credit files and other data relating to the Collateral or any Account Debtor, together with
the tapes, disks, diskettes and other data and software storage media and devices, file cabinets or containers in or on which the
foregoing are stored (including any rights of Borrower with respect to any of the foregoing maintained with or by any other Person);
and

 

(z)          Any
and all products and Proceeds of the foregoing in any form including, without limitation, all insurance claims, warranty claims
and Proceeds and claims against third parties for loss or destruction of or damage to any or the foregoing.

 

    	 	17

     

    

 

5.2          Financing
Statements. Borrower hereby authorizes Lender to prepare and file Financing Statements with respect to the Collateral in form
acceptable to Lender and its counsel, and hereby ratifies any actions taken by Lender prior to or after the date hereof in respect
of the preparation and filing of such Financing Statements. Borrower shall, at all times, do, make, execute, deliver and record,
register or file all Financing Statements and other instruments, acts, pledges, leasehold or other mortgages, amendments, modifications,
assignments and transfers (or cause the same to be done), and will deliver to Lender such instruments and/or documentation evidencing
items of Collateral, as may be requested by Lender to better secure or perfect Lender's security interest in the Collateral or
any Lien with respect thereto. Borrower acknowledges that it is not authorized to file any Financing Statement or amendment or
termination statement with respect to any Financing Statement in favor of Lender without the prior written consent of Lender and
agrees that it will not do so without the prior written consent of Lender. In addition, Borrower hereby authorizes Lender to record
the Liens in favor of the Lender in the U.S. Patent and Trademark Office and the U.S. Copyright Office, as applicable, and the
taking of any actions required under the laws of jurisdictions outside the United States with respect to Intellectual Property
included in the Collateral.

 

5.3          License
Grant. Borrower hereby grants to Lender an irrevocable, non-exclusive, worldwide license without payment of royalty or other
compensation to Borrower, upon the occurrence and during the continuance of an Event of Default, to use or otherwise exploit in
any manner as to which authorization of the holder of such Intellectual Property would be required, and to license or sublicense
such rights in to and under, any Intellectual Property now or hereafter owned by or licensed to Borrower, and wherever the same
may be located, including in such license access to all media in which any of such Intellectual Property may be recorded or stored
and to all software and hardware used for the compilation or printout thereof, and represents, warrants and agrees that any such
license or sublicense is not and will not be in conflict with the contractual, proprietary or commercial rights of any third Person
and subject, in the case of trademarks and service marks, to sufficient rights to quality control and inspection in favor of Borrower
to avoid the risk of invalidation of said trademarks and service marks. The foregoing license will terminate on the indefeasible
payment in full of all Obligations; provided, however, that any license, sublicense, or other rights granted by Lender
pursuant to such license during its term shall remain in effect in accordance with its terms.

 

5.4          Representations,
Warranties and Covenants Concerning the Collateral. Borrower covenants, represents and warrants (each of which such covenants,
representations and warranties shall survive execution and delivery of this Agreement and shall be deemed repeated upon the making
of each request for a Revolving Loan and made as of the time of each and every Revolving Loan hereunder) as follows:

 

(a)          (i)
Borrower owns all of the Collateral free and clear of all Liens (including any claim of infringement) except those in Lender’s
favor and Permitted Encumbrances and (ii) none of the Collateral is subject to any agreement prohibiting the granting of a Lien
or requiring notice of or consent to the granting of a Lien, except as set forth in Section 5.4(a) of the Borrower’s Disclosure
Schedule.

 

(b)          It
shall not encumber, mortgage, pledge, assign or grant any Lien upon any Collateral or any other assets to anyone other than the
Lender and except for Permitted Encumbrances.

 

(c)          The
Liens granted pursuant to this Agreement, upon the filing of Financing Statements in respect of Borrower in favor of the Lender
in the applicable filing office of the state of organization of Borrower, the recording of the Liens in favor of the Lender in
the U.S. Patent and Trademark Office and the U.S. Copyright Office, as applicable, and the taking of any actions required under
the laws of jurisdictions outside the United States with respect to Intellectual Property included in the Collateral which is created
under such laws, constitute valid perfected first priority security interests in all of the Collateral in favor of the Lender,
as security for the prompt and complete payment and performance of the Obligations, enforceable in accordance with the terms hereof.

 

    	 	18

     

    

 

(d)          No
security agreement, mortgage, deed of trust, financing statement, equivalent security or Lien instrument or continuation statement
covering all or any part of the Collateral is or will be on file or of record in any public office, except those relating to Permitted
Encumbrances.

 

(e)          It
shall not dispose of any of the Collateral whether by sale, lease or otherwise except for the disposition or transfer in the ordinary
course of business of worn out or obsolete Equipment if consented to in advance in writing by Lender, in Lender’s sole and
absolute discretion, and then only to the extent that the proceeds of any such disposition are used to acquire replacement Equipment
which is subject to the Lender’s security interest or are used to repay the Obligations, as determined by Lender in its sole
and absolute discretion.

 

(f) 
         It shall defend the right, title and interest of the Lender in and to
the Collateral against the claims and demands of all Persons whomsoever, and take such actions, including (i) all actions
necessary to grant the Lender “control” of any Investment Property, Deposit Accounts, Letter-of-Credit Rights or
Electronic Chattel Paper owned by it, with any agreements establishing control to be in form and substance satisfactory to
the Lender, (ii) the prompt (but in no event later than two (2) Business Days following the Lender’s request therefor)
delivery to the Lender of all original Instruments, Chattel Paper, negotiable Documents and certificated Securities owned by
it (in each case, accompanied by stock powers, allonges or other instruments of transfer executed in blank), (iii)
notification to third parties of the Lender’s interest in Collateral at the Lender’s request, and (iv) the
institution of litigation against third parties as shall be prudent in order to protect and preserve its and/or the
Lender’s interests in the Collateral.

 

(g)          It
shall promptly, and in any event within three (3) Business Days after the same is acquired by it, notify the Lender of any Commercial
Tort Claim in excess of $100,000 acquired by it and shall execute and deliver to the Lender such documents as Lender shall request
to perfect, preserve or protect the Liens, rights and remedies of the Lender with respect to any such Commercial Tort Claim

 

(h)          It
shall perform in a reasonable time all other steps requested by the Lender to create and maintain in the Lender’s favor a
valid perfected first Lien in all Collateral.

 

(i)       
   It shall notify the Lender promptly, and in any event within one (1) Business Days after obtaining
knowledge thereof, of any loss, damage or destruction of any of the Collateral.

 

(j)   
       Section 5.4(j) of the Borrower’s Disclosure Schedule contains a true
and complete list of all Equipment owned by Borrower as of the Closing Date and the location of such Equipment. Borrower
shall not permit any Equipment to become a fixture to real estate or accessions to other personal property. Borrower owns no
Equipment other than as set forth in such Section 5.4(j). It shall keep and maintain its Equipment in good operating
condition, except for ordinary wear and tear, and shall make all necessary repairs and replacements thereof so that the value
and operating efficiency shall at all times be maintained and preserved.

 

(k)          Borrower
shall maintain and keep all of its books and records concerning the Collateral at its executive offices listed in Section 5.4(m)
of the Borrower’s Disclosure Schedule.

 

    	 	19

     

    

 

(l)    
      Section 5.4(l) of the Borrower’s Disclosure Schedule lists all banks and
other financial institutions at which it maintains deposits and/or other accounts, and such Section 5.4(l) correctly
identifies the name, address and telephone number of each such depository, the name in which the account is held, a
description of the purpose of the account, and the complete account number. Borrower shall not establish any depository or
other bank account with any financial institution (other than the accounts set forth on Section 5.4(l) of the
Borrower’s Disclosure Schedule) without Lender’s prior approval in Lender’s sole and
absolute discretion.

 

(m)         On
the date hereof, Borrower’s exact legal name (as indicated in the public record of its jurisdiction of organization), jurisdiction
of organization, organizational identification number, if any, from the jurisdiction of organization, and the location of its chief
executive office and all other offices or locations out of which it conducts business or operations, are specified on Section
5.4(m) of the Borrower’s Disclosure Schedule. It has furnished to the Lender its Organizational Documents and long-form
good standing certificate as of a date which is within thirty (30) days of the date hereof. It is organized solely under the law
of the jurisdiction so specified and has not filed any certificates of domestication, transfer or continuance in any other jurisdiction.
Except as otherwise indicated on Section 5.4(m) of the Borrower’s Disclosure Schedule, the jurisdiction of its organization
of formation is required to maintain a public record showing it to have been organized or formed. Except as specified on Section
5.4(m) of the Borrower’s Disclosure Schedule, it has not changed its name, jurisdiction of organization, chief executive
office or sole place of business or its corporate or company structure in any way (e.g., by merger, consolidation, change in form
or otherwise) within the last five years and has not within the last five years become bound (whether as a result of merger or
otherwise) as a grantor under a security agreement entered into by another Person, which has not heretofore been terminated.

 

(n)          It
will not, except with Lender’s prior written consent and upon delivery to the Lender of all additional Financing Statements
and other documents and legal opinions requested by the Lender to maintain the validity, perfection and priority of the security
interests provided for herein: (i) change its jurisdiction of organization or the location of its chief executive office from that
referred to in Section 5.4(m) of the Borrower’s Disclosure Schedule; or (ii) change its name, identity or organizational
structure.

 

(o)          Except
pursuant to the terms of this Agreement, none of the Collateral is subject to any prohibition against encumbering, pledging, hypothecating
or assigning the same or requires notice or consent to Borrower’s doing of the same.

 

(p)          [RESERVED]

 

(q)          A
complete and accurate list of all policies of insurance currently held by Borrower on the date hereof (collectively, “Existing
Insurance Policies”) is set forth in Section 5.4(q) of the Borrower’s Disclosure Schedule.

 

    	 	20

     

    

 

SECTION
6. CONDITIONS TO MAKING INITIAL LOANS.

 

The obligation of
Lender to make the initial Loan shall be subject to the satisfaction or waiver by Lender, prior thereto or concurrently therewith,
of each of the following conditions precedent:

 

6.1          Loan
Documents. Each of the Loan Documents shall have been duly and properly authorized, executed and delivered by Borrower and
the other parties thereto and shall be in full force and effect as of the date hereof.

 

6.2          Representations
and Warranties. Each of the representations and warranties made by or on behalf of Borrower to Lender in this Agreement and
in other Loan Documents shall be true and correct in all material respects as of the date hereof, provided that any such representation
or warranty that is qualified by materiality shall be true and correct in all respects as of the date hereof.

 

6.3          Certified
Copies of Formation Documents. Lender shall have received from Borrower, certified by a duly authorized officer to be true
and complete on and as of a date which is not more than ten (10) Business Days prior to the date hereof, a copy of each of the
Organizational Documents of Borrower in effect on such date of certification.

 

6.4          Proof
of Action. Lender shall have received from Borrower a copy, certified by a duly authorized officer to be true and complete
on and as of the date hereof, of the records of all corporate or limited liability company action, as the case may be, taken by
Borrower to authorize (a) its execution and delivery of each of the Loan Documents to which it is or is to become a party as contemplated
or required by this Agreement, (b) its performance of all of its agreements and obligations under each of such documents, and (c)
the incurring of the Obligations contemplated by this Agreement.

 

6.5          Legal
Opinion. Lender shall have received a written legal opinion, addressed to Lender, dated the date hereof, from counsel for Borrower.
Such legal opinion shall be acceptable to Lender and its counsel.

 

6.6          Collateral.
Lender shall have obtained a first priority, perfected security interest in the Collateral.

 

6.7          Insurance.
Lender shall have received evidence of insurance, additional insured and loss payee endorsements required hereunder and under the
other Loan Documents, in form and substance satisfactory to Lender, and certificates of insurance policies and/or endorsements
naming Lender as additional insured and loss payee under such of the Existing Insurance Policies or other insurance policies as
may be required by Lender under Section 9.8 or otherwise.

 

6.8          Validity
of Collateral Representation. Lender shall have received a statement by the appropriate officers of Borrower which shall represent
and certify the validity of the Collateral.

 

6.9          IRS
Form 4506 and 8821. Lender shall have received from Borrower an executed Form 4506 and an executed Form 8821 to be submitted
to the Internal Revenue Service which shall grant Lender access to Borrower’s Tax information.

 

    	 	21

     

    

 

6.10        IRS
Form W-9. Lender shall have received from Borrower an executed Form W-9 to be submitted to the Internal Revenue Service which
shall allow Lender to verify Borrower’s tax identification number(s).

 

6.11        Pay
Proceeds Letter. Borrower shall have delivered to Lender a pay proceeds letter with respect to the disbursement of the proceeds
of the initial Loans in form and substance satisfactory to Lender, which letter shall provide for, among other things, the payment
or reimbursement of all costs and expenses incurred by Lender in connection with this Agreement and the other Loan Documents including,
without limitation, Lender’s due diligence expenses and legal fees.

 

6.12        No
Event of Default. No event shall have occurred on or prior to the date of each initial Loan by Lender hereunder and be continuing
on the date of each such initial Loan by Lender hereunder, and no condition shall exist on the date of each Loan by Lender hereunder,
which constitutes an Event of Default or which would, with notice or the lapse of time, or both, constitute an Event of Default
under this Agreement or any other Loan Document; and, Lender shall have received a certification from a Responsible Officer with
respect to the foregoing in form and substance satisfactory to Lender.

 

6.13        Payoff
Letters. Borrower shall have delivered to Lender payoff letters in form and substance satisfactory to Lender from each of California
United Bank and Opus Bank.

 

6.14        Payment
of Certain Existing Subordinated Debt. On or before the Closing, Borrower shall have paid off certain Indebtedness of Borrower
to Redwood Fund LP, Colgan Financial Group and First Fire Global, to the extent set forth on Exhibit 6.14 annexed hereto,
as evidenced by documentation in form and substance satisfactory to Lender.

 

6.15         ACH
Agreement. Lender shall have received from Borrower an agreement executed by Borrower which irrevocably authorizes Lender to
initiate manual and automatic electronic (debit and credit) entries through the Automated Clearing House or other appropriate electronic
payment system to all deposit accounts maintained by Borrower, wherever located.

 

6.16        Capital
Infusion. No later than December 31, 2016, Borrower shall have received an infusion of equity, or subordinated debt
securities convertible into equity, for aggregate proceeds equal to no less than Two Hundred Thousand Dollars ($200,000) in form
and substance satisfactory to Lender in its sole and absolute discretion.

 

6.17        Additional
Deliveries. Borrower shall have delivered to Lender such other instruments, documents and certificates reasonably requested
by Lender.

 

SECTION
7.  CONDITIONS TO MAKING ALL LOANS.

 

The obligations of
Lender to make all Loans hereunder shall be subject to the satisfaction or waiver by Lender, prior thereto or concurrently therewith,
of each of the conditions set forth in Section 6 and, in addition, the following conditions precedent:

 

7.1          Applications
and Compliance. The application for such Loans shall have been made by Borrower to Lender in accordance with the applicable
provisions of this Agreement and in compliance with all provisions of this Agreement.

 

    	 	22

     

    

 

7.2          Representations
and Warranties. Each of the representations and warranties made by or on behalf of Borrower to Lender in this Agreement or
in other Loan Documents shall have been true and correct in all material respects when made (provided that any such representation
or warranty that is qualified as to materiality shall be true and correct in all respects), shall, for all purposes of this Agreement,
be deemed to be repeated on and as of the date of each Loan by Lender hereunder and shall be true and correct in all respects on
and as of each such date, except to the extent that any of such representations and warranties relate, by the express terms thereof,
solely to a date prior to the date of each Loan by Lender hereunder, and Lender shall have received a certification from a Responsible
Officer of Borrower with respect to the foregoing in form and substance satisfactory to Lender.

 

7.3          Performance,
etc. Borrower shall have duly and properly performed, complied with and observed each of its covenants, agreements and obligations
contained in this Agreement and in any other Loan Documents on the date of each Loan by Lender hereunder, and Lender shall have
received a certification from a Responsible Officer with respect to the foregoing in form and substance satisfactory to Lender.
No event shall have occurred on or prior to the date of each Loan by Lender hereunder and be continuing on the date of each Loan
by Lender hereunder, and no condition shall exist on the date of each Loan by Lender hereunder, which constitutes an Event of Default
or which would, with notice or the lapse of time, or both, constitute an Event of Default under this Agreement or any other Loan
Document, and Lender shall have received a certification from a Responsible Officer with respect to the foregoing in form and substance
satisfactory to Lender.

 

SECTION
8.  REPRESENTATIONS AND WARRANTIES.

 

Borrower hereby represents
and warrants to Lender, knowing and intending that Lender shall rely thereon in making the Loans contemplated hereby (each of which
representations and warranties shall be continuing unless expressly made in relation only to a specific date), that:

 

8.1          Existence:

 

(a)          Each
Borrower (i) is a corporation or limited liability company duly organized or formed, validly existing and in good standing under
the laws of the jurisdiction of its organization or formation, (ii) is in good standing in all other jurisdictions in which it
is required to be qualified to do business as a foreign corporation or limited liability company, (iii) has all requisite corporate
or limited liability company power and authority and full legal right to own or to hold under lease its properties and to carry
on the business as presently engaged and (iv)
has been issued all required federal, state and local licenses, certificates or permits necessary, required or appropriate to the
operation of its business.

 

(b)          Each
Borrower has corporate or limited liability company power and authority and has full legal rights to enter into each of the Loan
Documents to which it is a party, and to perform, observe and comply with all of its agreements and obligations under each of such
documents.

 

    	 	23

     

    

 

8.2          No
Violation, etc. The execution and delivery by Borrower of the Loan Documents to which Borrower is a party, the performance
by Borrower of all of its agreements and obligations under each of such documents, and the incurring by Borrower of all of the
Obligations contemplated by this Agreement, have been duly authorized by all necessary corporate or limited liability company actions
on the part of Borrower and, if required, its shareholders, and do not and will not (a) contravene any provision of Borrower’s
Organizational Documents or this Agreement (each as from time to time in effect), (b) conflict with, or result in a breach of the
terms, conditions, or provisions of, or constitute a default under, or result in the creation of any Lien upon any of the property
of Borrower under, any agreement, mortgage or other instrument to which Borrower is or may become a party, (c) violate or contravene
any provision of any law, regulation, order, ruling or interpretation thereunder or any decree, order or judgment or any court
or governmental or regulatory authority, bureau, agency or official (all as from time to time in effect and applicable to such
entity), (d) other than waivers required from Borrower’s landlords require any waivers, consents or approvals by any third
party, including any creditors or trustees for creditors of Borrower, or (e) require any approval, consent, order, authorization,
or license by, or giving notice to, or taking any other action with respect to, any Governmental Authority.

 

8.3          Binding
Effect of Documents, etc. Borrower has duly executed and delivered each of the Loan Documents to which Borrower is a party,
and each of the Loan Documents is valid, binding and in full force and effect. The agreements and obligations of Borrower as contained
in each of the Loan Documents constitute, or upon execution and delivery thereof will constitute, legal, valid and binding obligations
of Borrower, enforceable against Borrower in accordance with their respective terms, subject, as to the enforcement of remedies
only, to limitations imposed by federal and state laws regarding bankruptcy, insolvency, reorganization, moratorium and other laws
affecting creditors' rights and remedies generally, and by general principles of law and equity.

 

8.4          No
Events of Default.

 

(a)          No
Event of Default has occurred and is continuing and no event has occurred and is continuing and no condition exists that would,
with notice or the lapse of time, or both, constitute an Event of Default.

 

(b)          Borrower
is not in default under any Material Contract to which Borrower is a party or by which Borrower or any property of Borrower is
bound.

 

(c)          Borrower’s
execution, delivery and performance of and compliance with this Agreement and the other Loan Documents will not, with or without
the passage of time or giving of notice, result in any violation of law, or be in conflict with or constitute a default under any
term or provision, or result in the creation of any Lien upon any of Borrower’s properties or assets or the suspension, revocation,
impairment, forfeiture or nonrenewal, of any permit, license, authorization or approval applicable to Borrower, or any of its businesses
or operations or any of its assets or properties.

 

8.5          No
Governmental Consent Necessary. No consent or approval of, giving of notice to, registration with or taking of any other action
in respect of, any Governmental Authority is required with respect to the execution, delivery and performance by Borrower of this
Agreement and the other Loan Documents to which it is a party.

 

8.6           No
Proceedings. Except as disclosed in Borrower’s Form 10-Q for the quarter ended May 31, 2016, as filed with the SEC, there
are no material actions, suits, or proceedings pending or, to the best of Borrower’s knowledge, threatened against or affecting
Borrower in any court or before any Governmental Authority.

 

    	 	24

     

    

 

8.7          No
Violations of Laws; Licenses and Permits. Borrower has conducted, and is conducting, its Business, so as to comply in all material
respects with all applicable federal, state, county and municipal statutes and regulations. Neither Borrower nor any officer, director,
manager, member or shareholder of Borrower is or has been charged with, or so far as is known by Borrower, is under investigation
with respect to, any violation of any such statutes, regulations or orders, which could have a Material Adverse Effect. Borrower
has been issued all required federal, state and local licenses, certificates or permits required for the operation of its business.

 

8.8          Use
of Proceeds of the Loans. Proceeds from the Loans shall be used only for those purposes set forth in this Agreement. No part
of the proceeds of the Loans shall be used, directly or indirectly, for the purpose of purchasing or carrying any margin stock
or for the purpose of purchasing or carrying or trading in any stock under such circumstances as to involve Borrower in a violation
of any statute or regulation. In particular, without limitation of the foregoing, no part of the proceeds from the Loans is intended
to be used to acquire any publicly-held stock of any kind.

 

8.9          Financial
Statements; Indebtedness.

 

(a)          The
consolidated balance sheet of Borrower as of August 31, 2015, and the related consolidated]statement of operations, stockholders’
equity and cash flows (together with the related notes) for the year ended August 31, 2015, and the consolidated balance sheet
of Borrower as of May 31, 2016 and the related consolidated statement of operations, stockholders’ or members’ equity
and cash flows (together with the related notes) for the six-month period ended May 31, 2016 (in each case, as set forth in the
SEC Reports) (collectively, the “Financial Statements”) (x) fairly present, as of the dates thereof, the financial
position of Borrower, and the results of its operations, cash flows and stockholders’ equity in all material aspects, and
(y) except for the fact that the unaudited financial statements omit notes to such statements and year-end adjustments thereto,
have been prepared in accordance with GAAP.

 

(b)          Except
as shown on the most recent Financial Statements, (i) Borrower has no other Indebtedness as of the date hereof, and (ii) Borrower
has no liabilities, contingent or otherwise, except those which, individually or in the aggregate, are not material to the financial
condition or operating results of Borrower.

 

8.10        Changes
in Financial Condition. Since the Balance Sheet Date, there has been no material adverse change and no material adverse development
in the business, properties, operations, condition (financial or otherwise), results of operations or prospects of any Borrower.
Since the Balance Sheet Date, Borrower has not (i) declared or paid any dividends or distributions, (ii) sold any assets, individually
or in the aggregate, outside of the ordinary course of business, (iii) had capital expenditures outside of the ordinary course
of business, (iv) engaged in any transaction with any Affiliate except as set forth in Section 10.9 of Borrower’s Disclosure
Schedule or (v) engaged in any other transaction outside of the ordinary course of business.

 

8.11        Equipment.
Borrower shall keep and maintain its Equipment in good order and repair, and in running and marketable condition, ordinary wear
and tear excepted.

  

    	 	25

     

    

 

8.12        Taxes
and Assessments.

 

(a)          Borrower
has paid and discharged when due all taxes, assessments and other governmental charges which may lawfully be levied or assessed
upon its income and profits, or upon all or any portion of any property belonging to it, whether real, personal or mixed, to the
extent that such taxes, assessment and other charges have become due. Borrower has filed all tax returns, federal, state and local,
and all related information, required to be filed by it.

 

(b)          Borrower
shall make all payments to be made by it hereunder without any Tax Deduction (as defined below), unless a Tax Deduction is required
by law. If Borrower is aware that it must make a Tax Deduction (or that there is a change in the rate or the basis of a Tax Deduction),
it shall promptly notify Lender. If a Tax Deduction is required by law to be made by Borrower, the amount of the payment due from
Borrower shall be increased to an amount which (after making the Tax Deduction) leaves an amount equal to the payment which would
have been due if no Tax Deduction had been required. If Borrower is required to make a Tax Deduction, Borrower shall make the minimum
Tax Deduction allowed by law and shall make any payment required in connection with that Tax Deduction within the time allowed
by law. Within thirty (30) days of making either a Tax Deduction or a payment required in connection with a Tax Deduction, Borrower
shall deliver to Lender evidence satisfactory to Lender that the Tax Deduction has been made or (as applicable) the appropriate
payment has been paid to the relevant taxing authority.

 

(c)          “Tax
Deduction” means a deduction or withholding for or on account of Tax from a payment under a Loan Document. “Tax”
means any tax, levy, impost, duty or other charge or withholding of a similar nature, including any income, franchise, stamp, documentary,
excise or property tax, charge or levy (in each case, including any related penalty or interest).

 

8.13        ERISA.
Borrower is in compliance in all material respects with the applicable provisions of ERISA and all regulations issued thereunder
by the United States Treasury Department, the Department of Labor and the Pension Benefit Guaranty Corporation.

 

8.14        Environmental
Matters.

 

(a)          Borrower
has duly complied with, and its facilities, assets, property, leaseholds and equipment are in compliance in all respects with,
the provisions of all Environmental Laws.

 

(b)          Borrower
has been issued all required federal, state and local licenses, certificates or permits required under Environmental Laws for the
operation of its Business.

 

8.15        United
States Anti-Terrorism Laws; Holding Company Status.

 

(a)          In
this Section 8.15:

 

“Anti-Terrorism
Law” means each of: (i) Executive Order No. 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten To Commit, or Support Terrorism (the “Executive Order”); (ii) the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56
(commonly known as the USA Patriot Act); (iii) the Money Laundering Control Act of 1986, Public Law 99-570; and (iv) any similar
law enacted in the United States of America subsequent to December 31, 2004.

 

    	 	26

     

    

 

“holding company”
has the meaning given to it in the United States Public Utility Holding Company Act of 1935, and any successor legislation and
rules and regulations promulgated thereunder.

 

“investment
company” has the meaning given to it in the United States Investment Company Act of 1940.

 

“public utility”
has the meaning given to it in the United States Federal Power Act of 1920.

 

“Restricted
Party” means any person listed: (i) in the Annex to the Executive Order; (ii) on the Specially Designated Nationals and
Blocked Persons list maintained by the Office of Foreign Assets Control of the United States Department of the Treasury; or (iii)
in any successor list to either of the foregoing.

 

(b)          Borrower
is not (i) a holding company or subject to regulation under the United States Public Utility Holding Company Act of 1935; (ii)
a public utility or subject to regulation under the United States Federal Power Act of 1920; (iii) required to be registered as
an investment company or subject to regulation under the United States Investment Company Act of 1940; or (iv) subject to regulation
under any United States Federal or State law or regulation that limits its ability to incur or guarantee indebtedness.

 

(c)          To
the best of Borrower’s knowledge, Borrower (i) is not, and is not controlled by, a Restricted Party; (ii) has not received
funds or other property from a Restricted Party; and (iii) is not in breach of and is not the subject of any action or investigation
under any Anti-Terrorism Law.

 

(d)          Borrower
has taken reasonable measures to ensure compliance with the Anti-Terrorism Laws.

 

8.16        Customers
and Vendors. There are no disputes with any customers, suppliers, manufacturers, vendors and independent contractors of Borrower
in excess of $10,000 in the aggregate with any such party.

 

8.17        Representations,
Warranties and Covenants Concerning the Collateral. The representations, warranties and covenants of Borrower set forth in
Section 5.4 hereof are incorporated in this Section 8.17 by reference.

 

8.18        Books
and Records. Borrower maintains its chief executive office and its books and records related to its Accounts and all other
Collateral at its address set forth in Section 5.4(m) of Borrower’s Disclosure Schedule.

 

8.19        SEC
Reports. The SEC Reports do not and shall not contain any untrue statement
of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances
under which they are made, not misleading.

 

8.20        Changes.
Since the Balance Sheet Date, except as disclosed in Section 8.20 of Borrower’s Disclosure Schedule, with respect
to Borrower, there has not been:

 

    	 	27

     

    

 

(a)          any
change in its business, assets, liabilities, condition (financial or otherwise), properties, operations or prospects, which, individually
or in the aggregate, has had, or could reasonably be expected to have, a Material Adverse Effect;

 

(b)          any
resignation or termination of any of its officers, key employees or groups of employees;

 

(c)          any
change, except in the ordinary course of business, in its contingent obligations by way of guaranty, endorsement, indemnity, warranty
or otherwise;

 

(d)          any
damage, destruction or loss, whether or not covered by insurance, which has had, or could reasonably be expected to have, individually
or in the aggregate, a Material Adverse Effect;

 

(e)          any
waiver by it of a valuable right or of a material debt owed to it;

 

(f)    
      any direct or indirect loans made by it to any of its stockholders, managers, members,
employees, managers, officers or directors, other than advances made in the ordinary course of business;

 

(g)          any
material change in any compensation arrangement or agreement with any employee, officer, manager, director or equity holder;

 

(h)          any
declaration or payment of any dividend or other distribution of its assets;

 

(i)          any
labor organization activity related to it;

 

(j)          any
debt, obligation or liability incurred, assumed or guaranteed by it, except those for immaterial amounts and for current liabilities
incurred in the ordinary course of business;

 

(k)          any
sale, assignment, transfer, abandonment or other disposition of any Collateral;

 

(l)      
    any change in any Material Contract to which it is a party or by which it is bound which, either
individually or in the aggregate, has had, or could reasonably be expected to have, individually or in the aggregate, a
Material Adverse Effect;

 

(m)         any
other event or condition of any character that, either individually or in the aggregate, has had, or could reasonably be expected
to have, individually or in the aggregate, a Material Adverse Effect; or

 

(n)          any
arrangement or commitment by it to do any of the acts described in subsection (a) through (m) of this Section 8.20.

 

    	 	28

     

    

 

8.21        Intellectual
Property.

 

(a)          (1)
Borrower holds all Intellectual Property that it owns free and clear of all Liens and restrictions on use or transfer, whether
or not recorded, and has sole title to and ownership of or has the full, exclusive (subject to the rights of its licensees) right
to use in its field of business such Intellectual Property; and Borrower holds all Intellectual Property that it uses but does
not own under valid licenses or sub-licenses from others; (2) the use of the Intellectual Property by Borrower does not violate
or infringe on the rights of any other Person; (3) Borrower has not received any notice of any conflict between the asserted rights
of others and Borrower with respect to any Intellectual Property; (4) Borrower has used its commercially reasonable best efforts
to protect its rights in and to all Intellectual Property; (5) Borrower is in compliance with all material terms and conditions
of its agreements relating to the Intellectual Property; (6) Borrower is not, and since the Balance Sheet Date has not been, a
defendant in any action, suit, investigation or proceeding relating to infringement or misappropriation by Borrower of any Intellectual
Property nor has Borrower been notified of any alleged claim of infringement or misappropriation by Borrower of any Intellectual
Property; (7) to the knowledge of Borrower, none of the products or services Borrower is researching, developing, proposes to research
and develop, make, have made, use, or sell, infringes or misappropriates any Intellectual Property right of any third party; and
(8) to Borrower’s knowledge, none of the material processes and formulae, research and development results and other know-how
relating to Borrower's business, the value of which to Borrower is contingent upon maintenance of the confidentiality thereof,
has been disclosed to any Person other than Persons bound by written confidentiality agreements.

 

(b)          Section
8.21 of Borrower’s Disclosure Schedule sets forth a true and complete list of (i) all Intellectual Property owned or
claimed by Borrower, together with any and all registration or application numbers for any Intellectual Property filed or issued
by any Intellectual Property registry (and, in the case of any and all domain names registered by or on behalf of Borrower, the
names of the registrar(s) thereof) and (ii) all Intellectual Property licenses which are material to the Business of Borrower,
including licenses for standard software having a replacement value of more than $5,000.

 

8.22        Employees.
Borrower has no collective bargaining agreements with any of its employees. There is no labor union organizing activity pending
or, to Borrower’s knowledge, threatened with respect to Borrower. Except as set forth in Section 8.22 of Borrower’s
Disclosure Schedule, Borrower is not a party to or bound by any currently effective deferred compensation arrangement, bonus
plan, incentive plan, profit sharing plan, retirement agreement or other employee compensation plan or agreement. To Borrower’s
knowledge, no employee of Borrower, nor any consultant with whom Borrower has contracted, is in violation of any material term
of any employment contract or any other contract relating to the right of any such individual to be employed by, or to contract
with, Borrower or to receive any benefits; and, to Borrower’s knowledge, the continued employment by Borrower of its present
employees, and the performance of Borrower’s contracts with its independent contractors, will not result in any such violation.
Except for employees who have a current effective employment agreement with Borrower, as set forth in Section 8.22 of Borrower’s
Disclosure Schedule, no employee of Borrower has been granted the right to continued employment by Borrower or to any material
compensation following termination of employment with Borrower. Borrower is not aware that any officer, director, manager, partner,
key employee or group of employees intends to terminate his, her or their employment with Borrower, nor does Borrower have a present
intention to terminate any of the same.

 

8.23        Tax
Status. Borrower (i) has made or filed all federal and state income and all other tax returns, reports and declarations required
by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are shown
or determined to be due on such returns, reports and declarations, except those being contested in good faith and for which it
has set aside on its books a provision in the amount of such taxes being contested in good faith and (iii) has set aside on its
books provisions reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns,
reports or declarations apply. There are no unpaid taxes payable by Borrower claimed to be due by the taxing authority of any jurisdiction,
and the officers of the Borrower know of no basis for any such claim.

 

    	 	29

     

    

 

8.24        Representations
and Warranties: True, Accurate and Complete. None of the representations, certificates, reports, warranties or statements now
or hereafter made or delivered to Lender pursuant hereto or in connection with this Agreement or any other Loan Document or the
transactions contemplated hereby contains or will contain any untrue statement of a material fact, or omits or will omit to state
a material fact necessary in order to make the statements contained herein and therein, in light of the circumstances in which
they are made, not misleading.

 

8.25        Fees;
Brokers; Finders. There are no fees, commissions or other compensation due to any third party acting on behalf of or at the
direction of Borrower in connection with the Loan Documents except as set forth on Section 8.25 of the Borrower’s Disclosure
Schedule. All negotiations relative to the Loan Documents, and the transactions contemplated thereby, have been carried on
by the Borrower with the Lender without the intervention of any other person or entity acting on behalf of the Borrower, and in
such manner as not to give rise to any claim against the Borrower or the Lender for any finder's fee, brokerage commission or like
payment due to any third party acting on behalf of or at the direction of Borrower, and if any such fee, commission or payment
is payable, it shall be the sole responsibility of the Borrower and the Borrower shall pay, and indemnify the Lender for, the same.

 

8.26        Internal
Accounting Controls. The Borrower maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under
the 1934 Act) that are effective, subject to the disclosure contained in the SEC Reports, in ensuring that information required
to be disclosed by the Borrower in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and
reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures
designed to ensure that information required to be disclosed by the Borrower in the reports that it files or submits under the
1934 Act is accumulated and communicated to the Borrower's management, including its principal executive officer or officers and
its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure.

 

8.27        Sarbanes-Oxley
Act. To the Borrower’s knowledge, the Borrower is in compliance with any and all applicable requirements of the Sarbanes-Oxley
Act of 2002 that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder
that are effective as of the date hereof.

 

SECTION
9.  AFFIRMATIVE COVENANTS.

 

Until the indefeasible
payment and satisfaction in full of all Obligations and the termination of this Agreement, Borrower hereby covenants and agrees
as follows:

 

9.1          Notify
Lender. Borrower shall promptly, and in any event within three (3) Business Days of determining of any of the following, inform
Lender (a) if any one or more of the representations and warranties made by Borrower in this Agreement or in any document related
hereto shall no longer be entirely true, accurate and complete in any material respect, (b) of any Equipment which is not in good
order and repair, and in running and marketable condition, ordinary wear and tear excepted, or of any Equipment that is removed
or missing from Borrower’s Premises; (d) of all material adverse information relating to the financial condition of Borrower;
(e) of any material return of goods; (f) of any loss, damage or destruction of any of the Collateral, and (g) the occurrence of
an Event of Default or a Material Adverse Effect.

 

    	 	30

     

    

 

9.2          Change
in Directors, Managers or Officers. Borrower shall promptly notify Lender of any changes in Borrower’s directors and/or
executive officers.

 

9.3          Pay
Taxes and Liabilities; Comply with Agreement. Except with respect to those certain trade accounts payable listed in Section
9.3 of Borrower’s Disclosure Schedule, Borrower shall pay, when due, and within agreed upon terms as disclosed in writing
by Borrower to Lender and agreed by Lender, or otherwise discharge, all Indebtedness, sums and liabilities of any kind now or hereafter
owing by Borrower to its employees as wages or salaries or to Lender, Governmental Authorities or any other party, however created,
incurred, evidenced, acquired, arising or payable, including, without limitation, the Obligations, income taxes, excise taxes,
sales and use taxes, license or franchise fees, and all other taxes with respect to any of the Collateral, or any wages or salaries
paid by Borrower or otherwise, unless the validity of which are being contested in good faith by Borrower by appropriate proceedings,
provided that Borrower shall have maintained reasonably adequate reserves and accrued the estimated liability on Borrower’s
balance sheet for the payment of same.

 

9.4          Observe
Covenants, etc. Borrower shall observe, perform and comply with the covenants, terms and conditions of this Agreement and the
other Loan Documents.

 

9.5          Maintain
Corporate Existence and Qualifications. Borrower shall maintain and preserve in full force and effect, its corporate existence
and rights, franchises, licenses and qualifications necessary to continue its business, and comply with all applicable statutes,
rules and regulations pertaining to the operation, conduct and maintenance of its existence and business including, without limitation,
all federal, state and local laws relating to benefit plans, environmental safety, or health matters, and hazardous or liquid waste
or chemicals or other liquids (including use, sale, transport and disposal thereof).

 

9.6          Financial
Reports and other Information and Documents to be Furnished to Lender. Borrower shall deliver or cause to be delivered to Lender
unless such information has been timely filed with the SEC:

 

(a)          Annual
Financial Statements. Annual financial statements of Borrower, certified by the Chief Financial Officer of each and audited
by an outside accounting firm acceptable to Lender, as soon as available, but in any event within ninety (90) days after the end
of Borrower’s Fiscal Year during the Term. Such financial statements shall (x) fairly present the financial position of Borrower
as of the dates thereof and the results of its operations, cash flows and stockholders’ equity for each of the periods then
ended in all material aspects; and (y) be prepared in accordance with GAAP.

 

(b)          Quarterly
Financial Statements. Quarterly financial statements of the Borrower, as soon as available but in any event no later than forty-five
(45) days after the close of each calendar quarter, consisting of the unaudited balance sheet and the related statement of income
of the Borrower, prepared in accordance with GAAP, subject to year-end audit adjustments, together with such other information
with respect to the business of Borrower as Lender may request.

 

    	 	31

     

    

 

(c)          Monthly
Financial Statements. Not later than eighteen (18) days after the end of the first three (3) calendar months ending after the
date hereof, and thereafter not later than fifteen (15) days after the end of each subsequent calendar month, the unaudited balance
sheets and the related statements of income of Borrower, certified by the Chief Financial Officer of Borrower, subject to year-end
audit adjustments, with an aging schedule for all accounts receivable and accounts payable and a calculation of LTM EBITDA as of
the date of such financial statements, together with such other information with respect to the business of Borrower as Lender
may request.

 

(d)          Bi-Monthly
Accounts Receivable and Accounts Payable Aging Reports. Twice a month, not later than the 15th day and the last
day of each calendar month, respectively, an aging schedule for all accounts receivable and accounts payable, in form and substance
satisfactory to Lender.

 

(d)          Borrowing
Certificates. Weekly, and more frequently if so requested by Lender, a Borrowing Certificate in accordance with Section 2.1(f)
hereof.

 

(e)          Securities
Filings. Within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed
by Borrower with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC, or distributed to its
shareholders, as the case may be. Documents required to be delivered pursuant to the terms hereof (to the extent any such documents
are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered, shall be deemed to
have been delivered on the date on which Borrower posts such documents, or provides a link thereto, on Borrower’s website
on the Internet at Borrower’s website address or on EDGAR; provided, however, Borrower shall promptly notify Lender in writing
(which may be by electronic mail) of the posting of any such documents;

 

(f)       
   Notice of Litigation, Judgments, Environmental, Health or Safety Complaints.

 

(i)          Within
five (5) Business Days after commencement or receipt by Borrower, written notice to Lender of all litigation and of all proceedings
involving the Borrower or any of its assets with respect to claims or contingent liabilities exceeding $50,000, together with a
copy of all pleadings and demands;

 

(ii)         Within
five (5) Business Days thereafter, written notice to Lender of (1) the institution of any lawsuit or of other legal or equitable
proceedings or the assertion of any crossclaim or counterclaim seeking monetary damages from Borrower, in each case with respect
to claims in excess of $50,000, or (2) the entry of any judgment; and

 

(iii)        Within
five (5) Business Days thereafter, notice or copies if written of all claims, complaints, orders, citations or notices, whether
formal or informal, written or oral, from a governmental body or private person or entity, relating to air emissions, water discharge,
noise emission, solid or liquid waste disposal, hazardous waste or materials, or any other environmental, health or safety matter,
which adversely affect Borrower. Such notices shall include, among other information, the name of the party who filed the claim,
the potential amount of the claim, and the nature of the claim.

 

    	 	32

     

    

 

(g)          Other
Information. Upon demand,

 

(i)          Certificates
of insurance for all policies of insurance to be maintained by Borrower pursuant hereto;

 

(ii)         All
information received by Borrower affecting the financial status or condition of any Account Debtor or the payment of any Account,
including but not limited to, invoices, original orders, shipping and delivery receipts; and

 

(iii)        An
estoppel certificate executed by an authorized officer of Borrower indicating that there then exists no Event of Default and no
event which, with the giving of notice or lapse of time, or both, would constitute an Event of Default.

 

(h)          Additional
Information. From time to time, such other information as Lender may reasonably request, including financial projections and
cash flow analysis.

 

9.7          Comply
with Laws. Borrower shall comply with the requirements of all applicable laws, rules, regulations and orders of any Governmental
Authority, compliance with which is necessary to maintain its corporate existence or the conduct of its business or non-compliance
with which would adversely affect in any respect its ability to perform its obligations or any security given to secure its obligations.

 

9.8          Insurance
Required.

 

(a)          Borrower
shall cause to be maintained, in full force and effect on all property of Borrower insurance in such amounts against such risks
as is reasonably satisfactory to Lender, including, but without limitation, product liability, business interruption, liability,
casualty, fire, boiler, theft, burglary, pilferage, vandalism, malicious mischief, loss in transit, and hazard insurance and, if
as of the date hereof, any of the leased real property of Borrower is in an area that has been identified by the Secretary of Housing
and Urban Development as having special flood or mudslide hazards, and on which the sale of flood insurance has been made available
under the National Flood Insurance Act of 1968, then Borrower shall maintain flood insurance. Said policy or policies shall:

 

(i)          Be
in a form and with insurers which are satisfactory to Lender;

 

(ii)         Be
for such risks, and for such insured values as Lender or its assigns may reasonably require in order to replace the property in
the event of actual or constructive total loss;

 

(iii)        Designate
Lender as additional insured and loss payee as Lender’s interest may from time to time appear;

 

(iv)        Contain
a “breach of warranty clause” whereby the insurer agrees that a breach of the insuring conditions or any negligence
by Borrower or any other person shall not invalidate the insurance as to Lender and its assignee;

 

(v)         Provide
that they may not be canceled or altered without thirty (30) days prior written notice to Lender; and

 

    	 	33

     

    

 

(vi)        Upon
demand, be delivered to Lender.

 

(b)          Borrower
shall obtain such additional insurance as Lender may reasonably require.

 

(c)          Borrower
shall, in the event of loss or damage, forthwith notify Lender and file proofs of loss with the appropriate insurer. Borrower hereby
authorizes Lender to endorse any checks or drafts constituting insurance proceeds.

 

(d)          Borrower
shall forthwith upon receipt of insurance proceeds endorse and deliver the same to Lender.

 

(e)          In
no event shall Lender be required either to (i) ascertain the existence of or examine any insurance policy or (ii) advise Borrower
in the event such insurance coverage shall not comply with the requirements of this Agreement.

 

9.9          Condition
of Collateral; No Liens. Borrower shall maintain all Collateral in good condition and repair at all times, and preserve it
against any loss, damage, or destruction of any nature whatsoever, and keep said Collateral free and clear of any Liens, except
for the Permitted Encumbrances, and shall not permit Collateral to become a fixture to real estate or accessions to other personal
property.

 

9.10        Payment
of Proceeds. Borrower shall forthwith upon receipt of all Proceeds of Collateral, pay such Proceeds (insurance or otherwise)
up to the amount of the then-outstanding Obligations over to Lender for application against the Obligations in such order and manner
as Lender may elect.

 

9.11        Records.
Borrower shall at all times keep accurate and complete records of its operations, of the Collateral and the status of each Account,
which records shall be maintained at its executive offices as set forth on Section 5.4(m) of Borrower’s Disclosure Schedule.

 

9.12        Pay
Obligations. Except with respect to those certain trade accounts payable listed in Section 9.3 of Borrower’s Disclosure
Schedule, Borrower shall promptly and timely pay all Obligations when due in accordance with the Loan Documents.

 

9.13        Delivery
of Documents. If any Proceeds of Accounts shall include, or any of the Accounts shall be evidenced by, notes, trade acceptances
or instruments or documents, whether or not negotiable, then Borrower waives protest regardless of the form of the endorsement.
If Borrower fails to endorse any instrument or document, Lender is authorized to endorse it on Borrower’s behalf.

 

9.14        SEC
Reporting Status. Borrower shall timely file all reports required to be filed with the SEC pursuant to Section 13 or 15(d)
of the 1934 Act.

 

    	 	34

     

    

 

9.15        Further
Assurances. Borrower shall at any time or from time to time upon request of Lender take such steps and execute and deliver
such Financing Statements and other documents (including, without limitation, original title certificates of motor vehicles included
in the Collateral and certificates of title with respect to any other Collateral, subject in each case to certificate of title
statutes in the United States) all in the form and substance satisfactory to Lender relating to the creation, validity or perfection
of the security interests provided for herein, under the UCC or which are reasonably necessary to effectuate the purposes and provisions
of this Agreement. Borrower shall defend the right, title and interest of Lender in and to the Collateral against the claims and
demands of all Persons whomsoever, and take such actions, including (i) all actions necessary to grant Lender “control”
of any Investment Property, Deposit Accounts, Letter-of-Credit Rights or Electronic Chattel Paper owned by it, with any agreements
establishing control to be in form and substance satisfactory to Lender, (ii) the prompt (but in no event later than two (2) Business
Days following Lender’s request therefor) delivery to Lender of all original Instruments, Chattel Paper, negotiable Documents
and certificated Securities owned by it (in each case, accompanied by stock powers, allonges or other instruments of transfer executed
in blank), (iii) notification of Lender’s interest in Collateral at Lender’s request, and (iv) the institution of litigation
against third parties as shall be prudent in order to protect and preserve Borrower’s and/or Lender’s respective and
several interests in the Collateral.

 

9.16        Indemnification.
Borrower shall indemnify, protect, defend and hold Lender, and Lender’s members, managers, directors, officers, employees,
agents, attorneys, and representatives (each, an “Indemnified Party”) harmless from and against any and all
claims, demands, suits, judgments, losses, damages, liabilities, expenses, costs and fees (including reasonable attorneys’
fees) and liabilities of any kind or nature relating to, resulting from, arising out of or in connection with the Loan Documents
and the transactions contemplated by the Loan Documents. If a claim or action shall be brought against an Indemnified Party based
upon any of the above, the Indemnified Party shall select counsel to defend such claim or action. Borrower shall be responsible
for payment of all costs and expenses of such counsel selected by the Indemnified Party and all costs and expenses incurred by
the Indemnified Party. The Indemnified Party and counsel selected by the Indemnified Party shall defend, compromise, settle or
purse such claim or action at Borrower’s expense. The provisions of this Section shall survive the termination of this Agreement
and the final repayment of the Obligations.

 

9.17        Name
Changes; Location Changes.

 

(a)          Subject
to Section 10.11 (“Change of Business or Name”), Borrower shall promptly notify Lender of any changes in the name of
Borrower or if Borrower is known by or conducting business under any names other than those set forth in this Agreement.

 

(b)          Borrower
shall deliver not less than thirty (30) days prior written notice to Lender if Borrower intends to conduct any of its Business
or operations at or out of offices or locations other than those set forth in Section 5.4(m) of the Borrower’s Disclosure
Schedule, or if it changes the location of its chief executive office or the address at which it maintains its books and records.

 

9.18        Borrower
Financial Covenants.

 

(a)          Adjusted
Gross Revenues. Borrower will maintain (i) minimum monthly gross revenues of not less than eighty percent (80%) of the projected
monthly plan provided by Borrower to Lender prior to the date hereof and annexed hereto as Exhibit 9.18(a), as measured
monthly as of the last day of each month during the Term, and (ii) minimum quarterly gross revenues of not less than eighty-five
percent (85%) of the projected quarterly plan provided by Borrower to Lender prior to the date hereof and annexed hereto as Exhibit
9.18(a), as measured quarterly as of the last day of each fiscal quarter during the Term .

 

    	 	35

     

    

 

(b)          EBITDA.
Borrower will maintain minimum quarterly EBITDA of not less than eighty-five percent (85%) of the projected quarterly plan provided
by Borrower to Lender prior to the date hereof and annexed hereto as Exhibit 9.18(b), as measured quarterly as of the last
day of each fiscal quarter during the Term.

 

SECTION
10.  NEGATIVE COVENANTS.

 

Until
payment and satisfaction in full of all Obligations and the termination of this Agreement, Borrower hereby covenants and agrees
as follows:

 

10.1        Change
of Control; No Creation of Subsidiaries. Borrower will not consolidate with, merge with, or acquire the stock or a material
portion of the assets of any person, firm, joint venture, partnership, corporation, or other entity, whether by merger, consolidation,
purchase of stock or otherwise if any such action results in a Change of Control (as defined below). Borrower will not create or
permit to exist any Subsidiary unless such new Subsidiary is a wholly-owned Subsidiary and is designated by Lender as either a
co-borrower or guarantor hereunder and such Subsidiary shall have entered into all such documentation required by Lender, including,
without limitation, to grant to Lender a first priority perfected security interest in substantially all of such Subsidiary’s
assets to secure the Obligations. In addition, Borrower will not acquire a material portion of the assets of any entity in a manner
that is not addressed by the foregoing provisions of this Section 10.1 if such action would impair Lender’s rights hereunder
or in the Collateral.

 

A “Change of Control”
shall be deemed to have occurred if:

 

(i)          any
“Person,” which shall mean a “person” as such term is used in Sections 13(d) and 14(d) of the 1934 Act,
or group of Persons, other than Persons that are holders of voting securities of the Borrower as of the date of the execution of
this Agreement, is or becomes the “beneficial owner” (as defined in Rule 13d-3 under the 1934 Act), directly or indirectly,
of securities of Borrower representing 50% or more of the combined voting power of Borrower’s then outstanding voting securities;

 

(ii)         individuals,
who at the Closing Date constitute the Board of Directors or the managers of Borrower, and any new director or manager whose election
by the Board of Directors or managers of Borrower, or whose nomination for election by Borrower’s equity holders, was approved
by a vote of at least one-half (1/2) of the directors or managers then in office (other than in connection with a contested election),
cease for any reason to constitute at least a majority of the Board of Directors or managers of Borrower;

 

(iii)        the
stockholders or members of Borrower approve (I) a plan of complete liquidation of Borrower or (II) the sale or other disposition
by Borrower of all or substantially all of Borrower’s assets; or

 

(iv)        a
merger or consolidation of Borrower with any other entity is consummated, other than:

 

    	 	36

     

    

 

(A)         a
merger or consolidation which results in the voting securities of Borrower outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 50%
of the combined voting power of the surviving entity's outstanding voting securities immediately after such merger or consolidation;
or

 

(B)         a
merger or consolidation which would result in the directors or managers of Borrower (who were directors or managers immediately
prior thereto) continuing to constitute more than 50% of all directors or managers of the surviving entity immediately after such
merger or consolidation.

 

In this paragraph (iv), “surviving
entity” shall mean only an entity in which all of Borrower’s equity holders immediately before such merger or consolidation
(determined without taking into account any equity holders properly exercising appraisal or similar rights) become stockholders
by the terms of such merger or consolidation, and the phrase “directors or managers of Borrower (who were directors or managers
immediately prior thereto)” shall include only individuals who were directors or managers of Borrower at the Closing Date.

 

10.2        Disposition
of Assets or Collateral. Borrower will not sell, lease, transfer, convey, or otherwise dispose of any or all of its assets
or Collateral, other than the sale of Equipment in accordance with Lender’s prior written consent under Section 5.4(e) hereof.

 

10.3        Other
Liens. Borrower will not incur, create or permit to exist any Lien on any of its property or assets, whether now owned or hereafter
acquired, except for (a) those Liens in favor of Lender created by this Agreement and the other Loan Documents and (b) the
Permitted Encumbrances.

 

10.4        Other
Liabilities. Borrower will not incur, create, assume, or permit to exist, any Indebtedness or liability on account of either
borrowed money or the deferred purchase price of property, except (i) Obligations to Lender, (ii) debt expressly subordinated to
Borrower’s Obligations to Lender pursuant to a subordination agreement in form and substance satisfactory to Lender or (iii)
Permitted Indebtedness.

 

10.5        Loans.
Borrower will not make any loans to any Person, other than advances to employees of Borrower in the ordinary course of business,
with outstanding advances to any employee not to exceed $5,000 at any time.

 

10.6        Guaranties.
Borrower will not assume, guaranty, endorse, contingently agree to purchase or otherwise become liable upon the obligation of any
Person, except by the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of business.

 

10.7        Transfers
of Notes or Accounts. Borrower will not sell, assign, transfer, discount or otherwise dispose of any Accounts or any promissory
note payable to Borrower, with or without recourse.

 

    	 	37

     

    

 

10.8        Dividends.
Borrower will not declare or pay any cash dividend, make any distribution on, redeem, retire or otherwise acquire directly or indirectly,
any shares of its stock or other Equity Interests without the prior written consent of Lender.

 

10.9        Payments
to Affiliates. Except as set forth in Section 10.9 of the Borrower’s Disclosure Schedule, or as otherwise approved
by Lender in writing in advance, Borrower shall not make any payments of cash or other property to any Affiliate.

 

10.10     Modification
of Documents. Borrower will not change, alter or modify, or permit any change, alteration or modification of its Organizational
Documents in any manner that might adversely affect Lender’s rights hereunder as a secured lender or its Collateral without
Lender's prior written consent.

 

10.11     Change
Business or Name. Borrower will not engage in any business other than the Business, or change its name as it appears in the
official filings of its state of organization.

 

10.12     Settlements.
Other than in the ordinary course of its business, Borrower will not compromise, settle or adjust any claims in any amount relating
to any of the Collateral, without the prior written consent of Lender.

 

SECTION
11.  EVENTS OF DEFAULT.

 

The occurrence of
any of the following shall constitute an event of default (hereinafter referred to as an “Event of Default”):

 

11.1        Failure
to Pay. The failure by Borrower to pay, when due, (a) any payment of principal, interest, fees or other charges due and owing
to Lender pursuant to any obligations of Borrower to Lender including, without limitation, those Obligations arising pursuant to
this Agreement or any Loan Document, or under any other agreement for the payment of monies then due and payable to Lender, where
such failure to pay continues for a period of more than three (3) calendar days, or (b) any taxes due to any Governmental Authority
where such failure to pay continues for a period of more than ten (10) calendar days.

 

11.2        Failure
of Insurance. Failure of one or more of the insurance policies required hereunder to remain in full force and effect; failure
on the part of Borrower to pay or cause to be paid all premiums when due on the insurance policies pursuant to this Agreement;
failure on the part of Borrower to take such other action as may be requested by Lender in order to keep said policies of insurance
in full force and effect until all Obligations have been indefeasibly paid in full; and failure on the part of Borrower to execute
any and all documentation required by the insurance companies issuing said policies, in each case, which failure continues for
a period of more than ten (10) Business Days.

 

11.3        Failure
to Perform. Borrower’s failure to perform or observe any material covenant, term or condition of this Agreement or in
any other Loan Document.

 

11.4        Cross
Default. Borrower’s breach of (a) any obligation of Borrower to Colgan Financial Group, Lincoln Park Capital or
Redwood Fund LP, if such breach, if uncured or unwaived, would trigger acceleration of the obligations of Borrower thereunder and
continues for a period of more than ten (10) calendar days, or (b) any Recurring Revenue Contract, which breach continues for a
period of more than ten (10) calendar days, or (c) any Material Contract other than a Recurring Revenue Contract, if such breach,
if uncured or unwaived, would trigger termination of such Material Contract and such breach continues for a period of more than
ten (10) calendar days

 

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11.5        False
Representation or Warranty. Borrower shall have made any statement, representation or warranty in this Agreement or in any
other Loan Document to which Borrower is a party or in a certificate executed by Borrower incident to this Agreement, which is
at any time found to have been false in any material respect at the time such representation or warranty was made.

 

11.6        Liquidation,
Voluntary Bankruptcy, Dissolution, Assignment to Creditors. Any resolution shall be passed or any action (including a meeting
of creditors) shall be taken by Borrower for the termination, winding up, liquidation or dissolution of Borrower, or Borrower shall
make an assignment for the benefit of creditors, or Borrower shall file a petition in voluntary liquidation or bankruptcy, or Borrower
shall file a petition or answer or consent seeking, or consenting to, the reorganization of Borrower or the readjustment of any
of the indebtedness of Borrower under any applicable insolvency or bankruptcy laws now or hereafter existing (including the United
States Bankruptcy Code), or Borrower shall consent to the appointment of any receiver, administrator, liquidator, custodian or
trustee of all or any part of the property or assets of Borrower or any corporate or limited liability company action shall be
taken by Borrower for the purposes of effecting any of the foregoing.

 

11.7        Involuntary
Petition Against Borrower. Any petition or application for any relief is filed against Borrower under applicable insolvency
or bankruptcy laws now or hereafter existing (including the United States Bankruptcy Code) or under any insolvency, reorganization,
receivership, readjustment of debt, dissolution or liquidation law or statute of any jurisdiction now or hereafter in effect (whether
at law or in equity), and is not dismissed or stayed within thirty (30) days of the filing thereof.

 

11.8        Judgments;
Levies. Judgments or attachments aggregating in excess of $10,000 at any given time are obtained against Borrower which remain
unstayed or unsatisfied for a period of ten (10) days or are enforced.

 

11.9        Change
in Condition. There occurs any event or a change in the condition or affairs, financial or otherwise, of Borrower which, in
the reasonable opinion of Lender, impairs Lender's security or the ability of Borrower to discharge its obligations hereunder or
any other Loan Document or which impairs the rights of Lender in the Collateral.

 

11.10     Environmental
Claims. Lender determines that any Environmental Liabilities and Costs or Environmental Lien with respect to Borrower will
have a potentially adverse effect on the financial condition of Borrower or on the Collateral.

 

11.11     Failure
to Notify. If at any time Borrower fails to provide Lender within ten (10) Business Days of Borrower’s receipt thereof
with notice or copies, if written, of all complaints, orders, citations or notices with respect to environmental, health or safety
complaints.

 

11.12     Failure
to Deliver Documentation. Borrower shall fail to obtain and deliver to Lender within ten (10) Business Days of Lender’s
request any other documentation required to be signed or obtained as part of this Agreement, or shall have failed to take any reasonable
action requested by Lender to perfect, protect, preserve and maintain the security interests and Lien on the Collateral provided
for herein.

 

    	 	39

     

    

 

11.13     Change
of Control. Borrower undergoes a Change of Control.

 

11.14     [RESERVED]

 

11.15     Dissolution;
Maintenance of Existence. Borrower is dissolved, or Borrower fails to maintain its corporate existence in good standing, or
the usual business of Borrower ceases or is suspended in any respect.

 

11.16     Indictment.
The indictment of Borrower or any director or Responsible Officer of Borrower under any criminal statute, or commencement of criminal
or civil proceedings against Borrower, pursuant to which statute or proceedings the penalties or remedies sought or available include
forfeiture of any material portion of the property of Borrower.

 

11.17     Tax
Liens. The filing of a Lien for any unpaid taxes filed by any Governmental Authority against Borrower or any of its assets
if uncured or unwaived for a period of more than ten (10) calendar days.

 

11.18     Challenge
to Validity of Loan Documents. Borrower attempts to terminate, or challenges the validity of, or its liability under, this
Agreement or any other Loan Document, or any proceeding shall be brought to challenge the validity, binding effect of any Loan
Document, or any Loan Document ceases to be a valid, binding and enforceable obligation of Borrower.

 

11.19     Claims
Against Lender. Any claims asserted by the Borrower seeking to challenge the Loan Documents or Lender’s Liens in the
Collateral, or otherwise commencing any cause of action against the Lender.

 

11.20     Termination
of Guarantee. The Guarantee shall have terminated.

 

    	 	40

     

    

 

SECTION
12.  REMEDIES.

 

12.1       Acceleration;
Other Remedies. Upon the occurrence and during the continuation of an Event of Default:

 

(a)          Lender
shall have all rights and remedies provided in this Agreement, any of the other Loan Documents, the UCC or other applicable law,
all of which rights and remedies may be exercised without notice to Borrower, all such notices being hereby waived, except such
notice as is expressly provided for hereunder or is not waivable under applicable law. All rights and remedies of Lender are cumulative
and not exclusive and are enforceable, in Lender's discretion, alternatively, successively, or concurrently on any one or more
occasions and in any order Lender may determine. Without limiting the foregoing, Lender may (i) accelerate the payment of all Obligations
and demand immediate payment thereof to Lender, (ii) with or without judicial process or the aid or assistance of others, enter
upon any premises on or in which any of the Collateral may be located and take possession of the Collateral or complete processing,
manufacturing and repair of all or any portion of the Collateral, (iii) require Borrower, at Borrower’s expense, to
assemble and make available to Lender any part or all of the Collateral at any place and time designated by Lender, (iv) collect,
foreclose, receive, appropriate, setoff and realize upon any and all Collateral, (v) notify Account Debtors or other obligors to
make payment directly to Lender, or notify bailees as to the disposition of Collateral, (vi) extend the time of payment of, compromise
or settle for cash, credit, return of merchandise, and upon any terms or conditions, any and all Accounts or other Collateral which
includes a monetary obligation and discharge or release the Account Debtor or other obligor, without affecting any of the Obligations,
and (vii) sell, lease, transfer, assign, deliver or otherwise dispose of any and all Collateral (including, without limitation,
entering into contracts with respect thereto, by public or private sales at any exchange, broker's board, any office of Lender
or elsewhere) at such prices or terms as Lender may deem reasonable, for cash, upon credit or for future delivery, with Lender
having the right to purchase the whole or any part of the Collateral at any such public sale, all of the foregoing being free from
any right or equity of redemption of Borrower, which right or equity of redemption is hereby expressly waived and released by Borrower.
If any of the Collateral or other security for the Obligations is sold or leased by Lender upon credit terms or for future delivery,
the Obligations shall not be reduced as a result thereof until payment therefor is finally collected by Lender. If notice of disposition
of Collateral is required by law, ten (10) days prior notice by Lender to Borrower designating the time and place of any public
sale or the time after which any private sale or other intended disposition of Collateral is to be made, shall be deemed to be
reasonable notice thereof and Borrower waives any other notice. In the event Lender institutes an action to recover any Collateral
or seeks recovery of any Collateral by way of prejudgment remedy, Borrower waives the posting of any bond which might otherwise
be required. In addition to the foregoing and without limitation to any other provision hereof, Borrower hereby grants Lender its
assignee or any of its representatives and also grants to any purchasers of any Collateral at any public or private sale conducted
by Lender, the right and license, for a period of up to ninety (90) days commencing on the date of the conclusion of such public
or private sale conducted by Lender, to use all of the Borrower’s names, trade names, business names and trademarks, to enter
upon and use the premises where the Collateral is located and to do with the Collateral so purchased, any or all of the Permitted
Actions at no cost to Lender and at no cost to any purchaser of any Collateral at a public or private sale conducted by Lender
or by any purchaser of any Collateral. Borrower acknowledges and agrees that the foregoing rights of Lender and any purchasers
of Collateral pursuant to a public or private sale conducted by Lender shall survive the Term.

 

(b)          Lender
may apply the Proceeds of Collateral actually received by Lender from any sale, lease, foreclosure or other disposition of the
Collateral to payment of any of the Obligations, in whole or in part (including attorneys' fees and legal expenses incurred by
Lender with respect thereto or otherwise chargeable to Borrower) and in such order as Lender may elect, whether or not then due.
Borrower shall remain liable to Lender for the payment on demand of any deficiency together with interest at the Default Interest
Rate and all costs and expenses of collection or enforcement, including reasonable attorneys' fees and legal expenses.

 

(c)          Lender
may, at its option, cure any default by Borrower under any agreement with a third party or pay or bond on appeal any judgment entered
against Borrower, discharge taxes and Liens at any time levied on or existing with respect to the Collateral, and pay any amount,
incur any expense or perform any act which, in Lender's sole and absolute judgment, is necessary or appropriate to preserve, protect,
insure, maintain, or realize upon the Collateral. Such amounts paid by Lender shall be repayable by Borrower on demand and added
to the Obligations, with interest payable thereon at the Default Interest Rate. Lender shall be under no obligation to effect such
cure, payment, bonding or discharge, and shall not, by doing so, be deemed to have assumed any obligation or liability of Borrower.

 

    	 	41

     

    

 

(d)          Lender
and Lender’s agents shall have the right to utilize any of Borrower’s customer lists, registered names, trade names
or trademarks to publicly advertise, sell, lease, transfer, assign, deliver or otherwise dispose of any and all Collateral and
Borrower will be deemed to have waived and voided any confidentiality agreements by and between Borrower and Lender.

 

12.2        Set-off.
Lender shall have the right, immediately and without notice of other action, to set-off against any of Borrower’s liabilities
to Lender any money or other liability owed by Lender or any Affiliate of Lender (and such Affiliate of Lender is hereby authorized
to effect such set-off) in any capacity to Borrower, whether or not due, and Lender or such Affiliate shall be deemed to have exercised
such right of set-off and to have made a charge against any such money or other liability immediately upon the occurrence of such
Event of Default even though the actual book entries may be made at a time subsequent thereto. The right of set-off granted hereunder
shall be effective irrespective of whether Lender shall have made demand under or in connection with the Loans. None of the rights
of Lender described in this Section are intended to diminish or limit in any way Lender's or Affiliates of Lender's common-law
set-off rights.

 

12.3        Costs
and Expenses. Borrower shall be liable for all costs, charges and expenses, including attorney's fees and disbursements, incurred
by Lender by reason of the occurrence of any Event of Default or the exercise of Lender's remedies with respect thereto, each of
which shall be repayable by Borrower on demand with interest at the Default Interest Rate, and added to the Obligations.

 

12.4        No
Marshalling. Lender shall be under no obligation whatsoever to proceed first against any of the Collateral or other property
which is security for the Obligations before proceeding against any other of the Collateral. It is expressly understood and agreed
that all of the Collateral or other property which is security for the Obligations stands as equal security for all Obligations,
and that Lender shall have the right to proceed against any or all of the Collateral or other property which is security for the
Obligations in any order, or simultaneously, as in its sole and absolute discretion it shall determine. It is further understood
and agreed that Lender shall have the right to sell any or all of the Collateral or other property which is security for the Obligations
in any order or simultaneously, as Lender shall determine in its sole and absolute discretion.

 

12.5        No
Implied Waivers; Rights Cumulative. No delay on the part of Lender in exercising any right, remedy, power or privilege hereunder
or under any other Loan Document or provided by statute or at law or in equity or otherwise shall impair, prejudice or constitute
a waiver of any such right, remedy, power or privilege or be construed as a waiver of any Event of Default or as an acquiescence
therein. No right, remedy, power or privilege conferred on or reserved to Lender hereunder or under any other Loan Document or
otherwise is intended to be exclusive of any other right, remedy, power or privilege. Each and every right, remedy, power or privilege
conferred on or reserved to Lender under this Agreement or under any of the other Loan Documents or otherwise shall be cumulative
and in addition to each and every other right, remedy, power or privilege so conferred on or reserved to Lender and may be exercised
by Lender at such time or times and in such order and manner as Lender shall (in its sole and absolute discretion) deem expedient.

 

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SECTION
13. OTHER RIGHTS OF LENDER.

 

13.1        Collections.
Borrower hereby authorizes Lender to, and Lender shall make such arrangements as it shall deem necessary or appropriate to, collect
the Accounts and any other monetary obligations included in, or Proceeds of, the Collateral at any time whether or not an Event
of Default has occurred. Borrower shall, at Borrower’s expense and in the manner requested by Lender from time to time, direct
that remittances and all other Proceeds of accounts and other Collateral up to the amount of the then-current Obligations shall
be (a) remitted in kind to Lender, (b) sent to a post office box designated by and/or in the name of Lender, or in the name of
Borrower, but as to which access is limited to Lender and/or (c) deposited into a bank account maintained in the name of Lender
and/or a blocked bank account under arrangements with the depository bank under which all funds deposited to such blocked bank
account are required to be transferred solely to Lender. In connection therewith, Borrower shall execute such post office box and/or
blocked bank account agreements as Lender shall specify.

 

13.2        Repayment
of Obligations. All Obligations shall be payable at Lender's office set forth below or at a bank or such other place as Lender
may expressly designate from time to time for purposes of this Section. Lender shall apply all payments received from Borrower
and all Proceeds of Accounts or other Collateral received by Lender and all other payments in respect of the Obligations to the
Loans whether or not then due or to any other Obligations then due, in whatever order or manner Lender shall determine.

 

13.3        Lender
Appointed Attorney-in-Fact.

 

(a)          Borrower
hereby irrevocably constitutes and appoints Lender, with full power of substitution, as its true and lawful attorney-in-fact, with
full irrevocable power and authority in its place and stead and in its name or otherwise, from time to time in Lender's discretion,
at Borrower’s sole cost and expense, until the Obligations are indefeasibly paid in full, to take any and all appropriate
action and to execute and deliver any and all documents and instruments which Lender may deem reasonably necessary or advisable
to accomplish the purposes of this Agreement, including, without limiting the generality of the foregoing, (i) at any time any
of the Obligations are outstanding, (A) to transmit to Account Debtors, other obligors or any bailees notice of the interest of
Lender in the Collateral or request from Account Debtors or such other obligors or bailees at any time, in the name of Borrower
or Lender or any designee of Lender, information concerning the Collateral and any amounts owing with respect thereto; (B) to execute
in the name of Borrower and file against Borrower in favor of Lender Financing Statements or amendments with respect to the Collateral,
or record a copy or an excerpt hereof in the United States Copyright Office or the United States Patent and Trademark Office and
to take all other steps as are necessary in the reasonable opinion of Lender under applicable law to perfect the security interests
granted herein; and (C) to pay or discharge Taxes, Liens, security interests or other encumbrances levied or placed on or threatened
against the Collateral; and (ii) after and during the continuation of an Event of Default, (A) to receive, take, endorse, assign,
deliver, accept and deposit, in the name of Lender or Borrower, any and all cash, checks, commercial paper, drafts, remittances
and other instruments and documents relating to the Collateral or the Proceeds thereof, (B) to notify Account Debtors or other
obligors to make payment directly to Lender, or notify bailees as to the disposition of Collateral, (C) to change the address for
delivery of mail to Borrower and to receive and open mail addressed to Borrower, (D) take or bring, in the name of Lender or Borrower,
all steps, actions, suits or proceedings deemed by Lender necessary or desirable to effect collection of or other realization upon
the Collateral; (E) to obtain and adjust insurance required pursuant to this Agreement and to pay all or any part of the premiums
therefor and the costs thereof, (F) to assemble, market and/or sell any Collateral, (G) to take any and all action and to execute
and deliver any and all documents and instruments which Lender may deem reasonably necessary or advisable to (a) accomplish the
purposes of perfecting, continuing and preserving, a continuing first priority security interest in any of the Collateral in favor
of Lender, and (b) effect a transfer of any of the Collateral to Lender or to Lender’s designees, and (H) to extend the time
of payment of, compromise or settle for cash, credit, return of merchandise, and upon any terms or conditions, any and all Accounts
or other Collateral which includes a monetary obligation and discharge or release the Account Debtor or other obligor, without
affecting any of the Obligations.

 

    	 	43

     

    

 

(b)          Borrower
hereby ratifies, to the extent permitted by law, all that Lender shall lawfully and in good faith do or cause to be done by virtue
of and in compliance with this Agreement. The powers of attorney granted pursuant to this Agreement are each a power coupled with
an interest and shall be irrevocable until the Obligations are paid indefeasibly in full. Borrower shall promptly comply with Lender’s
requests, including, without limitation, any request to provide Lender with access to Borrower’s premises, to enable Lender
to exercise its remedies in accordance with Section 13.3(a).

 

13.4        Release
of Lender. Borrower hereby releases and exculpates Lender, its officers, partners, members, directors, employees, agents, representatives
and designees, from any liability arising from any acts or occurrences under this Agreement or in furtherance thereof, whether
as attorney-in-fact or otherwise, whether of omission or commission, and whether based upon any error of judgment or mistake of
law or fact, except for gross negligence or willful misconduct as determined by a final and non-appealable order from a court of
competent jurisdiction. In no event will Lender have any liability to Borrower for lost profits or other special or consequential
damages.

 

13.5        Uniform
Commercial Code. At all times prior and subsequent to an Event of Default hereinafter, Lender shall be entitled to all the
rights and remedies of a secured party under the UCC with respect to all Collateral.

 

13.6        Preservation
of Collateral. At all times prior and subsequent to an Event of Default hereinafter, Lender may (but without any obligation
to do so) take any and all action which in its sole and absolute discretion is necessary and proper to preserve its interest in
the Collateral, including without limitation the payment of debts of Borrower which might, in Lender's sole and absolute discretion,
impair the Collateral or Lender's security interest therein, and the sums so expended by Lender shall be secured by the Collateral,
shall be added to the amount of the Obligations due Lender and shall be payable on demand with interest at the rate applicable
to the Revolving Loan set forth in Section 3.1 hereof from the date expended by Lender until repaid by Borrower. After written
notice by Lender to Borrower and automatically, without notice, after an Event of Default, Borrower shall not, without the prior
written consent of Lender in each instance, (a) grant any extension of time of payment of any Accounts, (b) compromise
or settle any Accounts for less than the full amount thereof, (c) release in whole or in part any Account Debtor or other person
liable for the payment of any of the Accounts or any such other Collateral, or (d) grant any credits, discounts, allowances,
deductions, return authorizations or the like with respect to any of the Accounts.

 

    	 	44

     

    

 

13.7        Lender's
Right to Cure. In the event Borrower shall fail to perform any of its Obligations hereunder or under any other Loan Document,
then Lender, in addition to all of its rights and remedies hereunder, may perform the same, but shall not be obligated to do so,
at the cost and expense of Borrower. Such costs and expenses shall be added to the amount of the Obligations due Lender, and Borrower
shall promptly reimburse Lender for such amounts together with interest at the Default Interest Rate from the date such sums are
expended until repaid by Borrower.

 

13.8        Inspection
of Collateral; Access to Records. From time to time as requested by Lender, Lender or its designee shall have access, (a) prior
to an Event of Default, at the sole expense of Borrower, during reasonable business hours to all of the premises where Collateral
is located for the purpose of inspecting the Collateral and to all of Borrower’s Collateral, and all books and records of
Borrower, and Borrower shall permit Lender or Lender’s designees to make copies of such books and records or extracts therefrom
as Lender may request, and (b) on or after an Event of Default, at the sole expense of Borrower, at any time, to all of the premises
where Collateral is located for the purposes of inspecting, disposing and realizing upon the Collateral, and all Borrower’s
books and records, and Borrower shall permit Lender or its designee to make such copies of such books and records or extracts therefrom
as Lender may request. Without expense to Lender, Lender may use such of Borrower’s personnel, equipment, including computer
equipment, programs, printed output and computer readable media, supplies and premises for the realization on Collateral as Lender,
in its reasonable discretion prior to an Event of Default and in its sole and absolute discretion after an Event of Default has
occurred and is continuing, deems appropriate. Borrower hereby irrevocably authorizes all accountants and third parties to disclose
and deliver to Lender at Borrower’s expense all financial information, books and records, work papers, management reports
and other information in its possession regarding Borrower.

 

SECTION
14. PROVISIONS OF GENERAL APPLICATION.

 

14.1        Waivers.
Borrower waives demand, presentment, notice of dishonor or protest and notice of protest of any instrument of Borrower or others
which may be included in the Collateral.

 

14.2        Survival.
All covenants, agreements, representations and warranties made by Borrower herein or in any other Loan Document or in any certificate,
report or instrument contemplated hereby shall survive any independent investigation made by Lender and the execution and delivery
of this Agreement, and such certificates, reports or instruments and shall continue so long as any Obligations are outstanding
and unsatisfied, applicable statutes of limitations to the contrary notwithstanding.

 

14.3        Notices.
All notices, requests and demands to or upon the respective parties hereto shall be in writing and either (a) delivered by registered
or certified mail, (b) delivered by hand, or (c) delivered by national overnight courier service with next Business Day delivery,
and shall be deemed to have been duly given or made (i) upon the earlier of actual receipt and three (3) Business Days after deposit
in the United States Mail, registered or certified mail, return receipt requested, with proper postage prepaid, (ii) one (1) Business
Day after deposit with a national overnight courier with all charges prepaid, or (iii) when hand-delivered. All notices, requests
and demands are to be given or made to the respective parties at the following addresses (or to such other addresses as either
party may designate by notice in accordance with the provisions of this paragraph):

 

    	 	45

     

    

 

If to Borrower:

 

Greenwood Hall, Inc.

12424 Wilshire Boulevard

Suite 1030, Los Angeles, CA 90025

Attention: Dr. John Hall

 

With a copy to:

 

Drinker Biddle & Reath LLP

1800 Century Park East

Suite 1500

Los Angeles, CA 90067

Attention: Alan A. Lanis, Jr., Esq.

 

If to Lender:

 

Moriah Education Management LLC

1 University Plaza

Suite 407

Hackensack, NJ 07601

Attention: Greg Zilberstein

 

With a copy to:

 

Cohen Tauber Spievack & Wagner P.C.

420 Lexington Avenue, Suite 2400

New York, New York 10170

Attention: Adam Stein

 

Notwithstanding the foregoing, that parties
expressly acknowledge and agree that foregoing provisions of notice by Lender to Borrower’s counsel is an accommodation only,
and that Lender shall have fulfilled its notice obligation hereunder if notice shall have been received by Borrower at the address
set forth above, irrespective of whether such notice is received by Borrower’s counsel.

 

14.4        Amendments;
Waiver of Defaults. The terms of this Agreement shall not be amended, waived, altered, modified, supplemented or terminated
in any manner whatsoever except by a written instrument signed by Lender and Borrower. Any default or Event of Default by Borrower
may only be waived by a written instrument specifically describing such default or Event of Default and signed by the Lender.

 

    	 	46

     

    

 

14.5        Binding
on Successors.

 

(a)          This
Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, provided,
however, that Borrower may not assign any of its rights or obligations under this Agreement or the other Loan Documents to any
Person without the prior written consent of Lender.

 

(b)          Lender
may assign any or all of the Obligations together with any or all of the security therefor to any Person and any such assignee
shall succeed to all of Lender’s rights with respect thereto. Lender shall notify Borrower of any such assignment. Upon such
assignment, Lender shall have no further obligations under the Loan Documents. Lender may from time to time sell or otherwise grant
participations in any of the Obligations and the holder of any such participation shall, subject to the terms of any agreement
between Lender and such holder, be entitled to the same benefits as Lender with respect to any security for the Obligations in
which such holder is a participant.

 

14.6        Invalidity.
Any provision of this Agreement which may be determined by competent authority to be prohibited or unenforceable in any jurisdiction
shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable
such provision in any other jurisdiction.

 

14.7        Publicity.
Borrower hereby authorizes Lender to make appropriate announcements of the financial arrangement entered into by and between Borrower
and Lender, including, without limitation, announcements which are commonly known as tombstones, in such publications and to such
selected parties as Lender shall in its sole and absolute discretion deem appropriate, or as required by applicable law. Lender
hereby authorizes Borrower to disclose the material terms of this Agreement, including, but not limited to the name of Lender,
in Borrower’s SEC filings, subject to Lender’s prior review and approval of the sections thereof relating to this Agreement,
and to file the material Loan Documents as exhibits thereto to the extent required under applicable law.

 

14.8        Section
or Paragraph Headings. Section and paragraph headings are for convenience only and shall not be construed as part of this Agreement.

 

14.9        APPLICABLE
LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
THE LAWS OF WHICH THE BORROWER HEREBY EXPRESSLY ELECTS TO APPLY TO THIS AGREEMENT, WITHOUT GIVING EFFECT TO PROVISIONS FOR CHOICE
OF LAW THEREUNDER. THE BORROWER AGREES THAT ANY ACTION OR PROCEEDING BROUGHT TO ENFORCE OR ARISING OUT OF THIS AGREEMENT SHALL
BE COMMENCED IN ACCORDANCE WITH THE PROVISIONS OF THIS AGREEMENT.

 

    	 	47

     

    

 

14.10      WAIVER
OF JURY TRIAL. BORROWER HEREBY WAIVES ANY AND ALL RIGHTS THAT IT MAY NOW OR HEREAFTER HAVE UNDER THE LAWS OF THE UNITED STATES
OF AMERICA OR ANY STATE TO A TRIAL BY JURY OF ANY AND ALL ISSUES ARISING EITHER DIRECTLY OR INDIRECTLY IN ANY ACTION OR PROCEEDING
BETWEEN BORROWER AND LENDER OR THEIR SUCCESSORS AND ASSIGNS, OUT OF OR IN ANY WAY CONNECTED WITH THIS AGREEMENT, THE OTHER LOAN
DOCUMENTS, THE OBLIGATIONS AND/OR THE COLLATERAL. IT IS INTENDED THAT SAID WAIVER SHALL APPLY TO ANY AND ALL DEFENSES, RIGHTS,
AND/OR COUNTERCLAIMS IN ANY ACTION OR PROCEEDINGS BETWEEN BORROWER AND LENDER. BORROWER WAIVES ALL RIGHTS TO INTERPOSE ANY CLAIMS,
DEDUCTIONS, SETOFFS OR COUNTERCLAIMS OF ANY KIND, NATURE OR DESCRIPTION IN ANY ACTION OR PROCEEDING INSTITUTED BY LENDER WITH RESPECT
TO THIS AGREEMENT, THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS, THE COLLATERAL OR ANY MATTER ARISING THEREFROM OR RELATING THERETO,
EXCEPT COMPULSORY COUNTERCLAIMS.

 

14.11      CONSENT
TO JURISDICTION. BORROWER HEREBY (a) IRREVOCABLY SUBMITS AND CONSENTS TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL
COURTS LOCATED IN THE STATE OF NEW YORK, NEW YORK COUNTY WITH RESPECT TO ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF THIS AGREEMENT,
THE OTHER LOAN DOCUMENTS, THE OBLIGATIONS AND/OR THE COLLATERAL OR ANY MATTER ARISING THEREFROM OR RELATING THERETO, AND (b) WAIVES
ANY OBJECTION IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE OR FORUM NON CONVENIENS WITH RESPECT THERETO. IN ANY SUCH ACTION OR PROCEEDING,
BORROWER WAIVES PERSONAL SERVICE OF THE SUMMONS AND COMPLAINT OR OTHER PROCESS AND PAPERS THEREIN AND AGREES THAT THE SERVICE THEREOF
MAY BE MADE BY CERTIFIED MAIL, RETURN RECEIPT REQUESTED, DIRECTED TO BORROWER AT ITS OFFICES SET FORTH HEREIN OR OTHER ADDRESS
THEREOF OF WHICH LENDER HAS RECEIVED NOTICE AS PROVIDED IN THIS AGREEMENT. NOTWITHSTANDING THE FOREGOING, BORROWER CONSENTS TO
THE COMMENCEMENT BY LENDER OF ANY SUIT, ACTION OR PROCEEDING IN ANY OTHER JURISDICTION TO ENFORCE LENDER’S RIGHTS AND BORROWER
WAIVES ANY OBJECTIONS WHICH IT MAY NOW OR HEREAFTER HAVE BASED ON VENUE AND/OR FORUM NON CONVENIENS OF ANY SUCH SUIT, ACTION OR
PROCEEDING.

 

14.12      Entire
Agreement. This Agreement, the other Loan Documents, any supplements or amendments hereto or thereto, and any instruments or
documents delivered or to be delivered in connection herewith or therewith contains the entire agreement and understanding concerning
the subject matter hereof and thereof between the parties hereto, and supersede all other prior agreements, understandings, negotiations
and discussions, representations, warranties, commitments, proposals, offers and contracts concerning the subject matter hereof,
whether oral or written. In the event of any inconsistency between the terms of this Agreement and any schedule or exhibit hereto,
the terms of this Agreement shall govern.

 

14.13     Counterparts.
This Agreement may be executed in counterparts and by facsimile or other electronic signatures, each of which when so executed,
shall be deemed an original, but all of which shall constitute but one and the same instrument.

 

14.14     Joint
and Several Obligations. If more than one Person is a Borrower hereunder, the following shall apply:

 

    	 	48

     

    

 

(a)          All
Obligations, covenants and liabilities of Borrower hereunder shall be the joint and several Obligations, covenants and liabilities
of each Borrower. All representations and warranties of Borrower hereunder shall be deemed made by each Borrower with respect to
such Borrower. The Borrower shall make payment upon the maturity of the Obligations by acceleration or otherwise, and such obligation
and liability on the part of the Borrower shall in no way be affected by the failure of Lender to pursue or preserve its rights
against any Borrower or the release by Lender of any Collateral now or thereafter acquired from any Borrower.

 

(b)          Each
Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution or any other claim
which such Borrower may now or hereafter have against any other Borrower or against any other Person directly or contingently liable
for the Obligations until all Obligations have been indefeasibly paid in full as determined by Lender.

 

(c)          Each
Borrower represents and warrants to Lender that (i) the Borrowers have one or more common or affiliated shareholders, directors
and officers, (ii) the businesses and corporate activities of each Borrower are closely related to, and substantially benefit,
the business and corporate activities of the other, (iii) each Borrower will receive a substantial economic benefit from entering
into this Agreement and will receive a substantial economic benefit from the application of the Loan hereunder, in each case, whether
or not such amount is used directly by such Borrower and (iv) the Loans made hereunder are for the exclusive and indivisible benefit
of the Borrower as though, for purposes of this Agreement, the Borrowers constituted a single entity.]

 

[REMAINDER OF PAGE INTENTIONALLY LEFT
BLANK]

 

    	 	49

     

    

 

EXECUTION 

IN WITNESS
WHEREOF, this Loan and Security Agreement has been duly executed as of the day and year first above written.

 

	 	BORROWERS:
	 	 
	 	GREENWOOD HALL, INC.
	 	 	 
	 	By:	/s/ John Hall
	 	Name: John R. Hall
	 	Title: Chief Executive Officer
	 	 
	 	PCS LINK, INC.
	 	 	 
	 	By:	/s/ John Hall
	 	Name: John R. Hall
	 	Title: Chief Executive Officer
	 	 
	 	LENDER:
	 	 
	 	MORIAH EDUCATION MANAGEMENT LLC
	 	 	 
	 	By:	 
	 	Name:
	 	Title:

 

[SIGNATURE PAGE - LOAN AND SECURITY AGREEMENT]

 

     

     

    

 

Exhibit 2.4

 

Use of Proceeds – Payment of
Indebtedness

 

 

	Opus Bank	 	 	 	 
	Payoff Amount	 	$	1,200,000.00	 
	California United Bank	 	 	 	 
	Payoff Amount	 	$	175,000.00	 
	Colgan Financial Group, Inc.	 	 	 	 
	Partial Payoff	 	$	150,000.00	 
	John R. Hall	 	 	 	 
	Repayment of Loan	 	$	56,925	 

 

     

     

    

 

Exhibit 6.14

 

Payment of Existing Subordinated Debt

 

	Creditor	 	Amount to be
 remitted
	 
	Redwood Fund LP	 	$	187,256.53	 
	Colgan Financial Group, Inc.	 	$	150,000	 
	FirstFire Global Opportunities Fund, LLC	 	$	305,000	 

 

     

     

    

 

Exhibit 9.18(a) and (b)

 

Minimum Gross Revenues and Minimum
EBDTA

 

[ATTACHED]

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