Document:

Exhibit 10.42

 

EIGHTH AMENDMENT

TO

AMENDED AND RESTATED LOAN AND SECURITY AGREEMENT

 

THIS
EIGHTH AMENDMENT to Amended and Restated Loan and Security Agreement (this “Amendment”)
is entered into on this 11th day of July, 2012 but is to be effective as of the 28th day of June, 2012 by and between SILICON VALLEY
BANK (“Bank”) and US DATAWORKS, INC., a Nevada corporation (“Borrower”) whose address is One Sugar Creek
Center Blvd., 5th Floor, Sugar Land, TX 77478.

 

Recitals

 

A.                 
Bank and Borrower have entered into that certain Amended and Restated Loan and Security Agreement dated as of October
27, 2010, as amended from time to time including by that certain Forbearance and First Amendment to Amended and Restated Loan and
Security Agreement dated as of February 8, 2011, that certain Second Amendment to Amended and Restated Loan and Security Agreement
dated as of May 9, 2011, that certain Third Amendment to Amended and Restated Loan and Security Agreement dated as of June 7, 2011,
that certain Fourth Amendment to Amended and Restated Loan and Security Agreement dated as of June 30, 2011, that certain Forbearance
and Fifth Amendment to Amended and Restated Loan and Security Agreement dated September 12, 2011 and that certain Sixth Amendment
to Amended and Restated Loan and Security Agreement dated as of November 1, 2011 and that certain Seventh Amendment to Amended
and Restated Loan and Security Agreement dated as of March 15, 2012 (as the same may from time to time be further amended, modified,
supplemented or restated, the “Loan Agreement”).

 

B.                 
Bank has extended credit to Borrower for the purposes permitted in the Loan Agreement.

 

C.                 
Borrower has requested that Bank amend the Loan Agreement to (i) extend the maturity date and (ii) make certain other
revisions to the Loan Agreement as more fully set forth herein.

 

D.                 
Bank has agreed to so amend certain provisions of the Loan Agreement, but only to the extent, in accordance with the
terms, subject to the conditions and in reliance upon the representations and warranties set forth below.

 

Agreement

 

Now,
Therefore, in consideration of the foregoing recitals and other good and valuable consideration, the receipt
and adequacy of which is hereby acknowledged, and intending to be legally bound, the parties hereto agree as follows:

 

1.                  
Definitions. Capitalized terms used but not defined in this Amendment shall have the meanings given to
them in the Loan Agreement.

 

2.                  
Amendments to Loan Agreement. 

 

2.1               
Section 13.1 (Definitions). The following defined terms and their definitions set forth in Section 13.1 of the
Loan Agreement hereby are added, or amended and restated in their entirety, as follows:

 

“Eighth
Amendment Effective Date” is June 28, 2012.

 

“Facility
Amount” is (i) from the Eighth Amendment Effective Date through August 27, 2012, Seven Hundred Sixty Four Thousand Seven
Hundred Dollars ($764,700) and (ii) from August 28, 2012 through the Maturity Date, Four Hundred Sixty Eight Thousand Seven Hundred
Fifty Dollars ($468,750).

 

“Maturity
Date” is September 26, 2012.

 

    	1

    	 

    

 

3.                  
Limitation of Amendments.

 

3.1               
The amendments set forth in Section 2, above, are effective for the purposes set forth herein and shall be limited
precisely as written and shall not be deemed to (a) be a consent to any amendment, waiver or modification of any other term or
condition of any Loan Document, or (b) otherwise prejudice any right or remedy which Bank may now have or may have in the future
under or in connection with any Loan Document.

 

3.2               
This Amendment shall be construed in connection with and as part of the Loan Documents and all terms, conditions, representations,
warranties, covenants and agreements set forth in the Loan Documents, except as herein amended, are hereby ratified and confirmed
and shall remain in full force and effect.

 

4.                  
Representations and Warranties. To induce Bank to enter into this Amendment, Borrower hereby represents
and warrants to Bank as follows:

 

4.1               
Immediately after giving effect to this Amendment (a) the representations and warranties contained in the Loan Documents
are true, accurate and complete in all material respects as of the date hereof (except to the extent such representations and warranties
relate to an earlier date, in which case they are true and correct as of such date), and (b) no Event of Default has occurred and
is continuing;

 

4.2               
Borrower has the power and authority to execute and deliver this Amendment and to perform its obligations under the
Loan Agreement, as amended by this Amendment;

 

4.3               
The organizational documents of Borrower delivered to Bank on the date hereof remain true, accurate and complete and
have not been amended, supplemented or restated and are and continue to be in full force and effect;

 

4.4               
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, have been duly authorized;

 

4.5               
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not and will not contravene (a) any law or regulation binding on or affecting
Borrower, (b) any contractual restriction with a Person binding on Borrower, (c) any order, judgment or decree of any court or
other governmental or public body or authority, or subdivision thereof, binding on Borrower, or (d) the organizational documents
of Borrower;

 

4.6               
The execution and delivery by Borrower of this Amendment and the performance by Borrower of its obligations under the
Loan Agreement, as amended by this Amendment, do not require any order, consent, approval, license, authorization or validation
of, or filing, recording or registration with, or exemption by any governmental or public body or authority, or subdivision thereof,
binding on either Borrower, except as already has been obtained or made; and

 

4.7               
This Amendment has been duly executed and delivered by Borrower and is the binding obligation of Borrower, enforceable
against Borrower in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
liquidation, moratorium or other similar laws of general application and equitable principles relating to or affecting creditors’
rights.

 

5.                  
Counterparts. This Amendment may be executed in any number of counterparts and all of such counterparts
taken together shall be deemed to constitute one and the same instrument.

 

6.                  
Effectiveness. This Amendment shall be deemed effective upon (a) the due execution and delivery to Bank
of this Amendment by each party hereto, (b) the due execution and delivery to Bank of updated Borrowing Resolutions, (c) Borrower’s
payment to Bank of an extension fee of Two Thousand Dollars ($2,000), which may be debited from any of Borrower’s accounts
with Bank and (d) Borrower’s payment of all Bank Expenses incurred to date, which may be debited from any of Borrower’s
accounts with Bank.

 

    	2

    	 

    
 

In
Witness Whereof, the parties hereto have caused this Amendment to be duly executed and delivered as of the date first
written above.

 

	
        BANK

         

        SILICON VALLEY BANK

         

         

        By: /s/ Joe Camacho

        Name: Joe Camacho

        Title: Relationship Manager
	
        BORROWER

         

        US DATAWORKS, INC.

         

         

        By: /s/ Randall J. Frapart

        Name: /s/ Randall J. Frapart

        Title: Chief Financial Officer

         

	 	 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature
Page to Eighth Amendment to Amended and Restated Loan and Security Agreement] 

 

    	3Exhibit 10.43

 

	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

 

 

 

 

	SELLER	PURCHASER
		 
	Name:US Dataworks, Inc.	Name:Porter Capital Corporation
	 	 
	By: /s/ Charles E. Ramey	By: /s/ S.M. Trupiano 
	Officer’s Name Printed:  Charles E. Ramey	Officer’s Name Printed: S.M. Trupiano
	Its:  CEO	Its: Senior  Vice President
	 	 
	Street Address: One Sugar Creek Blvd., 5th Floor

                              Sugar Land, TX 77478	Street Address: 2112 First Avenue North, 

                            Birmingham, AL, 35203
	 	 
	Mailing Address:    Same as above	Mailing Address:PO Box 12105, Birmingham, AL, 35203
	 	 
	Email Address:  cramey@usdataworks.com	Email Address: rwilliamson@portercap.net
	 	 
	State of Organization:  Nevada	State of Organization: Alabama
	 	 
	Federal Tax ID:  84-1290152	Federal Tax ID: 63-1077133
	 	 
	State and County of Principal Office: Texas, Fort Bend County	State and County of Principal Office: Alabama, Jefferson County

  

 

State of Texas )                  County of Fort Bend )

 

On July 13, 2012, before
me, the undersigned, a Notary Public in and for said State, personally appeared the above-named representative of Seller, who is
personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the
within instrument and acknowledged to me that he or she executed the same in his/her authorized capacity, and that by his/her signature
on the instrument, the persons, or the entity upon behalf of which the person acted, executed the instrument.

 

WITNESS my hand and official seal.                                   Notary Signature: /s/
Notary (Seal)

 

 

 

This RECOURSE RECEIVABLES PURCHASE &
SECURITY AGREEMENT (“Agreement”) is made as of the 13th day of July, 2012 by and between the above-named Seller ("Seller")
and Porter Capital Corporation ("Purchaser").

 

1. DEFINITIONS. The following
terms used herein shall have the following meanings. All capitalized terms not herein defined shall have the meanings set forth
in the Alabama Uniform Commercial Code:

 

“Accounts” – any
right to payment for goods sold or leased or for services rendered which is not evidenced by an instrument or chattel paper, whether
or not it has been earned by performance, or such additional meaning as shall be given to the term Accounts under the Uniform Commercial
Code as adopted in the State of Alabama.

 

“Accounts Transmittal”
– a form supplied by Purchaser from time to time wherein Seller lists such of its Accounts as it requests that Purchaser
purchase under the terms of this Agreement and to which are attached copies of all invoices which relate to the Accounts described
therein.

 

"Advance Rate" –
the Advance Rate set forth on "Schedule A." 

 

“Actual/365 Computation”
- a method used by Purchaser in determining the annual effective yield by taking the stated (nominal) rate for a year’s period
and then dividing said rate by 365 to determine the daily periodic rate to be applied for each day in the applicable period.

 

"Clearance Days" - Three
(3) business days for all Accounts.

 

"Collateral" - all of
Seller's personal property, both now owned and hereafter acquired, and wherever located, including, but not limited to: Accounts
(including Accounts purchased by Purchaser hereunder and repurchased by Seller); Chattel Paper; Deposit Accounts; Documents; Equipment;
Farm Products; Fixtures; General Intangibles; Goods; Instruments; Inventory; Investment Property; Letter or Credit Rights; and
the Proceeds or Proceeds of Proceeds of all of the foregoing, including, without limitation all insurance proceeds and all claims
against others for loss or destruction of or damage to any of the foregoing.

 

"Service Fee" - The Service
Fee Percent multiplied by the amount advanced against the Face Amount of each Purchased Account.

 

"Service Fee Percent"
– the Service Fee Percent set forth on “Schedule A.”

 

"Dispute" - a claim by
an Account Debtor that the goods or services which are the subject of a Purchased Account were not delivered or accepted in accordance
with the agreement between the Account Debtor and Seller, whether or not such dispute is valid.

 

"Due Diligence Fee" –
the Due Diligence Fee set forth on “Schedule A.”

 

"Eligible Account" - An
Account which is acceptable for purchase as determined by Purchaser in the exercise of its sole credit or business judgment.

 

"Events of Default" –
the Events of Default set forth in Section 11.1.

 

"Face Amount" -The face
amount due on an Account.

 

"Initial Term” –
the Initial Term set forth on “Schedule A.

 

"Insolvency Event" - either
(i) the filing of a petition under any state or federal debtor relief or liquidation statute by or against an Account Debtor, or
(ii) the failure of an Account Debtor to pay a Purchased Account within 90 days from the invoice date, so long as such failure
to pay was not the result of a Dispute.

 

Please Initial     CR      
 

 

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	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

 

 

"Interest Rate" –
the Prime Rate plus the margin set forth on “Schedule A.”

 

“Late Charges” - any
fee charged pursuant to section 3.4 of this Agreement.

 

“Line Amount” - the
Line Amount set forth on “Schedule A.”

 

"Minimum Term Fee" –
Two percent (2.0%) multiplied by the Minimum Average Monthly Volume multiplied by the number of months in the Initial Term or any
Renewal Term.

 

"Minimum Average Monthly Volume"
– the Minimum Average Monthly Volume set forth on “Schedule A.

 

"Misdirected Payment Fee"
– the greater of $5,000.00 or twenty-five (25%) of the amount of any payment on account of a Purchased Account which
has been received by Seller and not delivered in kind to Purchaser within three (3) business days following the date of receipt
by Seller.

 

“Notation” – Invoice
is assigned and payable to:

 

i. If by check, mail to the following address:

 

PORTER Capital
Corporation

PO Box 12105

Birmingham, Alabama 35203

For Account of: US Dataworks, Inc.

 

Please show invoice and/or account number
on check.

 

ii. If by electronic remittance, to:

 

Columbus Bank & Trust

Columbus, GA 31901

Account Name: Porter Capital Corporation

ABA Routing Number: 061100606

Account Number: 30101603

For Account of: US Dataworks, Inc.

 

"Obligations" –
all obligations of Seller under this Agreement and all present and future indebtedness and obligations due or owing by Seller to
Purchaser whether or not for the payment of money, whether or not evidenced by this Agreement, a note or any other instrument,
whether direct or indirect, absolute or contingent, due or to become due, joint or several, primary or secondary, liquidated or
un-liquidated, secured or unsecured, original or renewed or extended, including but not limited to any obligations arising pursuant
to other financial accommodations; and all principal, Reserve Shortfall, interest, Misdirected Payment Fees, Due Diligence Fees,
Origination/Renewal Fees, Wire Transfer Fees, ACH Transfer Fees, late charges, fees, expenses, attorneys' fees and accountants'
fees chargeable to Seller or incurred by Purchaser in connection with this Agreement and/or the transaction(s) related thereto.

 

"Origination/Renewal Fee"
– the Origination/Renewal Fee set forth on “Schedule A.”

 

"Parties" - Seller and
Purchaser.

 

"Permitted
Liens" – (a) Silicon Valley Bank’s current lien on the Collateral until such lien is released, (b) liens held
by lenders to the Seller that are expressly junior to the lien held by Purchaser; (c) purchase money liens on equipment acquired
or held by Borrower incurred for financing the acquisition of the equipment provided that the lien is confined to the equipment;
and liens incurred in the extension, renewal or refinancing of the indebtedness secured by liens described in (b) and (c), but
any extension, renewal or replacement lien must be limited to the property encumbered by then existing lien.

 

"Prime Rate" – the
Prime Rate as used herein shall be the greater of the prime rate as published in the Wall Street Journal as the "Prime Rate"
(base rate on corporate loans posted by at least 75% of the nation's 30 largest banks) or five percent per annum.

 

"Purchase Price" - The
Face Amount of a Purchased Account.

 

"Purchased Accounts" -
Accounts purchased hereunder which have not been Repurchased.

 

“Recourse Account” –
shall mean the portion of any Purchased Account that remains unpaid for more than the Repurchase Period from the date of the invoice,
or any portion of any Purchased Account that Purchaser determines no longer an Eligible Account.

 

“Repurchase Period”
– the Repurchase Period as set forth on “Schedule A.”

 

"Repurchased" - an Account
has been repurchased when Seller has paid to Purchaser the then unpaid Face Amount upon demand by Purchaser under the terms hereof.

 

"Required Reserve Amount"
- the Reserve Percentage multiplied by the unpaid balance due Purchaser on the Purchased Accounts.

 

"Reserve Account" - a
bookkeeping account on the books of the Purchaser representing an unpaid portion of the Purchase Price, maintained by Purchaser
to ensure Seller's performance with the provisions hereof.

 

"Reserve Percentage" –
the Reserve Percentage as set forth on “Schedule A.”

 

"Reserve Release Frequency Period"
– The time period during which Seller may make one request that the funds in the Reserve Account in excess of the Required
Reserve Account be paid to Seller. The time period for the Reserve Release Frequency Period is specified in "Schedule A."

 

"Reserve Shortfall" -
The amount by which the Reserve Account is less than the Required Reserve Amount.

 

2. SALE; PURCHASE PRICE; BILLING; NOTATION;
RESERVE.

 

2.1 Assignment and Sale. Seller
shall sell to Purchaser as absolute owner, with full recourse, such of Seller's Accounts as are listed from time to time on Accounts
Transmittal. Each Accounts Transmittal shall be accompanied by such documentation evidencing the Account as Purchaser shall from
time to time request. Purchaser may purchase from Seller such Accounts as Purchaser determines to be an Eligible Account, so long
as the total outstanding Face Amount of Purchased Accounts does not exceed, before and after such purchase, the Line Amount. Purchaser
shall incur no liability to Seller for refusal to purchase an Account determined not to be an Eligible Account. All Accounts Transmittals,
whether or not it is specifically set forth therein, shall constitute a representation by the Seller that it is solvent, has not
and is not contemplating filing bankruptcy and that all Accounts represented thereby are valid, enforceable, payable and actual
and not subject to setoffs, defenses or competing claims by any party. Seller shall make all appropriate accounting entries on
its books and records to reflect that Purchased Accounts have been sold to Purchaser.

 

Please Initial     CR      
 

 

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	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

 

  

2.2 Purchase Price. Purchaser shall
pay the Purchase Price as follows: Within one (1) business day following the determination that an Account is an Eligible Account
and Purchaser’s receipt of an Accounts Transmittal, countersigned by the Seller, Purchaser shall pay Seller an amount equal
to the Advance Rate times the Face Amount of Eligible Accounts reflected on such Accounts Transmittal whereupon the Eligible Accounts
set forth in the Accounts Transmittal shall be deemed purchased. The balance of the Purchase Price shall be applied to the Reserve
Account and/or any Obligations then due Purchaser by Seller under this Agreement.

 

2.3 Billing. Purchaser may send
a monthly statement to all Account Debtors itemizing their account activity during the preceding billing period.

 

2.4 Notation. Seller shall instruct
all Account Debtors on the Purchased Accounts to make payments pursuant to the Notation, and Purchaser may also instruct all Account
Debtors to make payments pursuant to the Notation.

 

2.5 Reserve Account. Purchaser may
apply a portion of any Purchase Price to the Reserve Account in the amount of the Reserve Shortfall. Without limiting the foregoing,
Seller shall pay to Purchaser on demand the amount of any Reserve Shortfall. Purchaser shall pay to Seller upon Seller's request
any amount by which collected funds in the Reserve Account are greater than the Required Reserve Amount; provided that Seller shall
be entitled to make such demand not more than once during each Reserve Release Frequency Period, unless otherwise agreed to by
Purchaser in Purchaser’s discretion. Purchaser may charge the Reserve Account with any Obligation, including any amounts
due from Seller to Purchaser hereunder. Purchaser may pay any amounts due Seller hereunder by a credit to the Reserve Account.
Amounts Purchaser is entitled to charge to the Reserve Account, which remain unpaid after Purchaser’s demand, shall accrue
Late Charges.

 

2.6 Collection of Purchased Accounts.
Purchaser (as purchaser of the Purchased Accounts) shall administer the collection of all of the Purchased Accounts. Purchaser
shall have the right of assignment to and endorsement of the Purchased Account and all payments received in connection with each
Purchased Account and the Seller hereby appoints Purchaser the attorney-in-fact and agent of the Seller for this purpose, which
appointment is coupled with an interest and is irrevocable during the term of this Agreement. Purchaser shall have no liability
to the Seller for any mistake in the application of any payment received by it with respect to any Purchased Account, so long as
it acts in good faith.

 

3. PAYMENT; OBLIGATION OF SELLER.
While this Agreement establishes the agreement of Purchaser to purchase and pay Seller for Eligible Accounts set forth in the Accounts
Transmittal, it also establishes payment and performance obligations of Seller to Purchaser. With respect to such Obligation owed
by Seller to Purchaser, Seller shall pay to Purchaser:

 

3.1 Interest. Interest, at the Interest
Rate on an amount equal to (i) the unpaid balance of the Purchase Price minus the Reserve Account, as such amounts change from
time to time plus (ii) outstanding fees or other Obligations owed by Seller to Purchaser hereunder, which shall be computed on
the basis of a an Actual/365 Computation; and

 

3.2 Minimum Term Fee. Any amount
by which the actual Service Fees paid plus the Interest paid plus the Origination Fee paid during the Initial Term, or if applicable
during any Renewal Term, is less than the Minimum Term Fee.

 

3.3 Calculation of and Payment of Interest.
All accrued interest shall be calculated monthly on the last calendar day of the month in which it accrues using the Interest Rate
in effect as of the first business day of that month and paid by Seller on the first business day of the next month. Any change
in the Interest Rate shall take place simultaneously with any corresponding change as set forth in the Prime Rate from time to
time.

 

3.4 Late Charges. In addition to
the foregoing, Seller shall also pay to Purchaser a late fee of .05% per day on any and all amounts due to Purchaser from Seller
pursuant to this Agreement until such amounts are paid in full. Late Charges will not apply to amounts due to Purchaser on Accounts
(but shall apply to other amounts) unless and until Seller is obligated under this Agreement to repurchase such Accounts, at which
time Late Charges will accrue until the Account and Late Charges are paid in full. Late Charges shall be paid and are due within
one business day following the occurrence of the event which makes Seller obligated to Purchaser for any Late Charges.

 

3.5 Due Diligence Fee; Origination/Renewal
Fee. In addition to the foregoing, Seller shall pay to Purchaser the Due Diligence Fee upon execution of this Agreement and
the Origination/Renewal Fee as follows: for the Initial Term, one-half on the date that Purchaser first purchases an Account of
Seller and the other half 30 days later and for any Renewal Term, one-half on the first day of the Renewal Term and the other half
30 days later.

 

3.6 Other Amounts. All other Obligations
or expenses, including, without limitation, Misdirected Payment Fees, Wire Transfer Fees, ACH Transfer Fees, any attorney fees,
UCC search fees, UCC filing fees, out of pocket or internal expenses, or any wire transfer, postage, audit or returned check fees
that are incurred by Purchaser or are specified on "Schedule A" shall be paid to Purchaser by Seller within three
(3) business days following the day such expenses are incurred by Purchaser.

 

3.7 Service Fees. The Service Fees
calculated and charged on a monthly basis. 

 

4. REPURCHASE OF ACCOUNTS. Purchaser
may require that Seller repurchase, by payment of the unpaid Face Amount thereof together with any unpaid fees relating to the
Purchased Account on demand, or, at Purchaser's option, by Purchaser's charge to the Reserve Account: (i) any Purchased Account
in Dispute, subject to an Insolvency Event, or for which Purchaser is required to disgorge; (ii) all Purchased Accounts upon the
occurrence of an Event of Default or upon the termination date of this Agreement; or (iii) any Purchased Account that remains unpaid
after the expiration of the Repurchase Period. Purchaser shall retain a security interest in any Purchased Account that is repurchased.

 

 

Please Initial     CR      
 

 

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	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

  

 

5. SECURITY INTEREST. Seller
grants, effective as of the time that Silicon Valley’s Bank current lien on the Collateral is released, to Purchaser a continuing
first priority security interest in and to the Collateral to secure the Obligations. Seller will cooperate with Purchaser in Purchaser's
obtaining control with respect to depository accounts, investment property, letter of credit rights, and/or electronic chattel
paper. Seller shall take all actions appropriate to perfect the Purchaser’s security interest in the Collateral and authorizes
Purchaser to create and file any and all financing statements, amendments corrections or releases as are necessary to perfect
and maintain its security interest.

 

6. COLLECTION CLEARANCE PERIOD.
For all purposes under this Agreement, Clearance Days will be added to the date on which any payment is received by Purchaser.

 

7. AUTHORIZATION TO PURCHASER.

 

7.1 Seller hereby irrevocably authorizes
Purchaser and any designee of Purchaser, at Seller's sole expense, and irrevocably appoints Purchaser as Seller’s attorney
in fact to exercise at any times in Purchaser's or such designee's discretion and in Seller’s name all or any of the following
powers until all of the Obligations have been paid in full: (a) receive, take, endorse, assign, deliver, accept and deposit, in
the name of Purchaser or Seller, any and all cash, checks, commercial paper, drafts, remittances and other instruments and documents
relating to the Collateral or the proceeds thereof, (b) take or bring, in the name of Purchaser or Seller, all steps, actions,
suits or proceedings deemed by Purchaser necessary or desirable to effect collection of or other realization upon the Accounts
and other Collateral, (c) after an Event of Default, change the address for delivery of mail to Seller and to receive and open
mail addressed to Seller, (d) after an Event of Default, 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 any Account Debtor or other obligor (including filing of any public record releasing any lien granted
to Seller by such Account Debtor), without affecting any of the Obligations, (e) file against Seller in favor of Purchaser financing
statements or amendments with respect to the Purchaser’s security interest in the Collateral, which may describe the Collateral
as "All Assets" of Seller, (f) pay any sums necessary to discharge any lien or encumbrance which is senior to Purchaser's
security interest in the Collateral, which sums shall be included as Obligations hereunder, and in connection with which sums the
Late Charge shall accrue and shall be due and payable, (g) file in the Seller’s or Purchaser’s name or both any mechanic’s
lien or claim under a payment bond connected to the goods or services of Seller; and (h) at any time, irrespective of whether an
Event of Default has occurred, without notice to or the assent of Seller, notify any Account Debtor obligated with respect to any
Account, that the underlying Account has been assigned to Purchaser by Seller and that payment thereof is to be made to the order
solely to Purchaser.

 

7.2 Seller hereby releases and exculpates
Purchaser, its officers, employees and designees, from any acts under this Agreement or in furtherance thereof whether of omission
or commission, and whether based upon any error of judgment or mistake of law or fact, except for willful misconduct and breaches
of this Agreement. In no event will Purchaser have any liability to Seller for lost profits or other special or consequential damages.

 

7.3 Seller authorizes Purchaser to initiate
electronic debit or credit entries through the ACH system to any deposit account maintained by Seller to satisfy any of the Obligations.

 

8. COVENANTS BY SELLER.

 

8.1 Seller warrants, represents, covenants
and recognizes that the Purchased Accounts are the sole property of Purchaser, and Seller shall not, collect same, or without Purchaser's
prior written consent, compromise or adjust any Purchased Account or grant any additional discounts, allowances or credits thereon.
Further Seller shall, immediately upon the sale of a Purchased Account, make proper entries on its books and records disclosing
the absolute sale and assignment of such Purchased Account to Purchaser.

 

8.2 After written notice by Purchaser to
Seller, and automatically, without notice, after an Event of Default, Seller shall not, without the prior written consent of Purchaser
in each instance, (a) grant any extension of time for payment of any of the Collateral which includes a monetary obligation, (b)
compromise or settle any of the Collateral 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 Collateral, or (d) grant any credits, discounts, allowances, deductions, return
authorizations or the like with respect to any of the Collateral.

 

8.3 From time to time as requested by Purchaser,
at the sole expense of Seller, Purchaser or its designee shall have access, during reasonable business hours if prior to an Event
of Default and at any time if on or after an Event of Default, to all premises where Collateral is located for the purposes of
inspecting (and removing, if after the occurrence of an Event of Default) any of the Collateral, including Seller's books and records,
and Seller shall permit Purchaser or its designee to make copies of such books and records or extracts there from as Purchaser
may request. Without expense to Purchaser, Purchaser may use any of Seller's personnel, equipment, including computer readable
media, supplies and premises for the collection of Accounts and realization on other Collateral as Purchaser, in its sole discretion,
deems appropriate. Seller hereby irrevocably authorizes all accountants and third parties to disclose and deliver to Purchaser
at Seller's expense all financial information, books and records, work papers, management reports and other information in their
possession relating to Seller. Notwithstanding the foregoing, all information concerning
the Seller provided to Purchaser as required or requested under this Section 8.3 shall constitute confidential information of Seller
and be protected by the confidentiality obligations set forth in Section 26 hereof.

 

8.4 Before sending any invoice evidencing
an Account to the Account Debtor, Seller shall mark same with the Notation, or such other notation as Purchaser shall have advised
Seller in writing.

 

Please Initial     CR      
 

 

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	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

 

 

8.5 Seller shall pay when due all payroll
and other taxes, and shall provide proof thereof to Purchaser no less than ten days after the filing in such form as Purchaser
shall reasonably require on no less than a monthly basis.

 

8.6 Seller shall not, without the prior
written consent of Purchaser suffer to exist any lien (including any encumbrance or security interest) of any kind upon any of
its assets, whether now owned or hereafter acquired other than Permitted Liens.

 

8.7 Seller shall not change its state of
incorporation or organization; consolidate or merge with another entity; change its name; or transfer, sell, lease or assign any
of its assets out of the ordinary course of business to another entity without Purchaser's written consent and at least thirty
(30) days prior to any such proposed change.

 

8.8 If payment of any
Purchased Account, or Recourse Account is made directly to Seller, such payment shall be deemed to have been received in trust
for Purchaser, and Seller shall not deposit or convert such funds and by the third banking day following the date of receipt, shall
send the same, properly endorsed, if necessary, to the “Notation” designated herein. In the event Seller at any time
cashes or deposits to its own account a payment on any Purchased Account received directly, such action by Seller shall be considered
a breach of this Agreement and if not returned immediately, be subject to, in addition to the Misdirected Payment Fee, such other
criminal and civil remedies to which Purchaser is entitled.

 

8.9 Seller shall maintain insurance on
all insurable property owned or leased by Seller in the manner, to the extent and against at least such risks (in any event, including
but not limited to fire and business interruption insurance) as usually maintained by owners of similar businesses and properties
in similar geographic areas. All such insurance shall be in amounts and form and with insurance companies acceptable to Purchaser
in its sole discretion, with Purchaser shown as additional insured. Seller shall furnish to Purchaser upon written request, any
and all information concerning such insurance carried. All policies of insurance shall provide for not less than thirty (30) days
prior written cancellation notice to Purchaser.

 

8.10 Seller is solely responsible for paying
all expenses of its business including by not limited to the timely filing and depositing on all payroll tax contributions, required
or withholding levied or fixed by any governmental authority of Seller’s permanent and temporary employees.

 

8.11 Seller shall indemnify Purchaser from
any loss arising out of the assertion of any avoidance claim or preference action initiated under the United States Bankruptcy
Code and shall pay to Purchaser on demand the amount thereof. Seller shall notify Purchaser within two business days of Seller
becoming aware of any avoidance claim or preference action. The Seller’s duties with regard to avoidance claims or preference
actions shall survive the termination of this Agreement.

 

8.12 Seller also will not, under any circumstances
or in any manner whatsoever, interfere with any of Purchaser's rights under this Agreement or misdirect the payment of any Purchased
Account.

 

8.13 Seller shall not factor, finance,
give a security interest (other than Permitted Liens) or sell any of its Accounts to any person or entity other than Purchaser
during the term of this Agreement, nor shall any Accounts to be purchased under this Agreement be previously sold, pledged or encumbered
(other than by Permitted Liens) by Seller or any other person or entity in any manner whatsoever.

 

8.14 Seller shall give Purchaser prompt
written notice of any levy, attachment, legal process, or notice of default as soon as same is received by Seller or as to which
Seller has knowledge.

 

8.15 Seller shall defend title to the Collateral
against all persons and against all claims and demands whatsoever, which Collateral, except for the security interest granted hereby
(and except for Permitted Liens), is lawfully owned by the Seller and is now free and clear of any and all liens, security interests,
claims, charges, encumbrances, taxes and assessments except as may be set forth specifically herein.

 

8.16 Seller shall pay, when due, all taxes,
assessments, and license fees relating to the Collateral.

 

8.17 Seller shall keep the Collateral,
at the Seller's own cost and expense, in good repair and condition and not to misuse, abuse, waste, or allow to deteriorate except
for normal wear and tear and to make the same available for inspection by Purchaser at all reasonable times.

 

8.18 If requested by Purchaser, Seller
shall cause Purchaser to be shown as lender’s loss payee or mortgagee on all insurance policies insuring the Collateral,
and deposit with Purchaser such certificates of insurance or policies as from time to time requested by Purchaser. Seller shall
give immediate written notice to Purchaser and to insurers of loss or potential loss or damage to the Collateral and shall promptly
file proofs of loss or potential loss with insurers. Seller hereby appoints Purchaser its attorney-in-fact in obtaining, adjusting
and canceling any such insurance and endorsing settlement drafts and hereby assigns to Purchaser all sums which may become payable
under such insurance, including return premiums and dividends, as additional security for the Obligations.

 

8.19 Seller shall immediately notify Purchaser
in writing of any change in or discontinuance of Seller's place or places of business.

 

9. ACCOUNT DISPUTES. Seller shall
notify Purchaser promptly of and, if requested by Purchaser, will settle all Disputes concerning any Purchased Account, at Seller's
sole cost and expense. However, Seller shall not, without Purchaser's prior written consent, compromise or adjust any Purchased
Account or grant any additional discounts, allowances or credits thereon. Purchaser may, but is not required to, attempt to settle,
compromise, or litigate (collectively, "Resolve") the Dispute upon such terms as Purchaser in its sole discretion deem
advisable, for Seller's account and risk and at Seller's sole expense. Upon the occurrence of an Event of Default Purchaser may
resolve such issues with respect to any Account of Seller.

 

10. REPRESENTATION AND WARRANTY.
Seller represents and warrants that: it is fully authorized to enter into this Agreement and to perform hereunder; this Agreement
constitutes its legal, valid and binding obligation; Seller is solvent and in good standing in the state of its organization; Seller's
state of incorporation or organization and exact legal name are set forth in the box of this Agreement; Seller's chief executive
office is located at the address set forth in the box of this Agreement; and the Purchased Accounts are bona fide existing obligations
without adjustment, claims, defenses, disputes or rights to setoff or cancellation, are not sales to affiliated entities, parent
companies or subsidiaries of the Seller and Seller has received no notice or otherwise learned of any actual or imminent bankruptcy,
insolvency or material impairment of the account debtors and Purchased Accounts.

 

 Please Initial     CR     
 

 

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	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

 

 

11. DEFAULT.

 

11.1 Events of Default. The following
events will constitute an Event of Default hereunder: (i) Seller defaults in the payment of any Obligations, (ii) Seller becomes
subject to any debtor-relief proceedings, (iii) Seller breaches any present or future covenant or agreement contained in this Agreement
or any other present or future contract or agreement with the Purchaser and such breach is not cured within 15 days of Seller’s
receipt of written notice thereof from Purchaser, and (iv) Purchaser for any reason, in good faith, deems itself insecure with
respect to the prospect of repayment or performance of the Obligations.

 

11.2 Effect of Default. Upon the
occurrence of any Event of Default, in addition to any rights Purchaser has under this Agreement or applicable law, with or without
notice to Seller, Purchaser may immediately terminate its duties under this Agreement, at which time all Obligations shall immediately
become due and payable without notice and Purchaser shall have the right to withhold any payments due to Seller until such times
as all the Obligations are satisfied and paid in full. In addition Purchaser shall have all of the rights of a secured party under
the Uniform Commercial Code, including without limitation the right to take possession and control of any Collateral and sell the
same either collectively or in lots at one or more private or public sale and Seller will remain liable for any deficiency. If
Purchaser sells any of the Collateral upon credit, Seller will be credited only with payments actually made by the purchaser of
the Collateral, received by Purchaser and applied to the indebtedness of the purchaser. In the event the purchaser of the Collateral
fails to pay for the Collateral, Purchaser may resell the Collateral, and Seller will be credited with the proceeds of the sale.
Purchaser may but shall not be required to proceed against Collateral but may proceed against the Seller or any guarantor of Seller
and the Obligations directly. Purchaser waives any and all rights it may have to marshalling of assets.

 

In addition to the foregoing, Purchaser
may declare the Obligations immediately due and payable, enforce the security interest given hereunder, require Seller to assemble
any Collateral secured hereunder and the records pertaining thereto and make them available to Purchaser at a place designated
by Purchaser, enter the premises of Seller and take possession of any Collateral not then in its possession and of the records
pertaining thereto, grant extensions, compromise claims, and settle collection of any Accounts forming the basis of the Collateral
for less than face value, all without prior notice to Seller, use, in connection with any assembly or disposition of the Collateral,
any trademark, trade name, trade style, copyright, patent right, or technical process used or utilized by Seller, and return any
surplus realized and hold Seller liable for any deficiency.

 

11.3 No Waiver. Any failure to or
decision by Purchaser not to exercise all of its rights upon an Event of Default shall not constitute or be deemed a waiver of
such rights as to current or future Events of Default. Any rights and remedies of Purchaser herein against the Seller or any guarantor
of Seller or the Obligations are cumulative and not alternative.

 

12. TERMS 

 

12.1 This Agreement shall be effective
for a period commencing on the date hereof and shall continue until the end of the Initial Term. This Agreement shall be deemed
to be automatically renewed for an additional term equal in length to the Initial Term (the “Renewal Term”) at the
expiration of the Initial Term, and thereafter to be automatically renewed for succeeding terms at the end of the first and each
succeeding Renewal Term, unless the Seller shall deliver written notice of cancellation to Purchaser no sooner than 120 days and
no later than sixty days prior to the expiration date of the Initial Term or any succeeding Renewal Term. No such termination shall
terminate or otherwise affect Seller's obligations hereunder incurred or accrued prior to such termination.

 

12.2 The representations, warranties and
covenants of the Seller and the remedies of Purchaser for a breach of such representations, warranties and/or covenants, shall
survive the termination of this Agreement, and such termination shall not effect the rights of Purchaser to enforce its remedies
under the agreements executed in connection herewith against the Seller or against any Collateral after a default by the Seller.

 

12.3 Upon termination, the Seller shall
remain fully responsible to Purchaser for any Purchased Accounts purchased prior to such termination. Additionally, Purchaser shall
maintain its security interest in the Collateral until all of the Obligations have been paid in full.

 

12.4 Seller shall have the right to terminate
this Agreement at any time prior to the end of a scheduled term as set forth in Section 12.1 hereof provided that if Seller exercises
such right, it will be obligated to make the Minimum Term Fee payment due, if any, counting the Service Fees, Interest and Origination
Fee paid during the Initial Term through the date of termination, within 30 days following such termination.

 

13. AMENDMENT. No part of this Agreement
may be changed, waived, discharged or terminated, nor may any consent to the departure from the terms hereof be given, orally (even
if supported by new consideration), but only by an instrument in writing signed by the party against whom enforcement of the change,
waiver, discharge or termination is sought. Any waiver or consent so given shall be effective only in the specific instance and
for the specific purpose for which given.

 

14. NO LIEN TERMINATION WITHOUT RELEASE.
In recognition of Purchaser's right to have its attorneys' fees and other expenses incurred in connection with this Agreement secured
by the Collateral, notwithstanding payment in full of all Obligations by Seller, Purchaser shall not be required to record any
terminations or satisfactions of any of Purchaser's liens on the Collateral unless and until Seller has executed and delivered
to Purchaser a general release in a form reasonably satisfactory to Purchaser.

 

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	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

 

 

15. FINANCIAL STATEMENTS. During
the term of this Agreement, Seller agrees to provide Purchaser with such financial statements and records and such other information
as may be reasonably requested by Purchaser from time to time, and each quarter, within thirty days following the end of the respective
quarter, shall furnish current financial statement, an updated customer list with customer names, contact names, addresses, and
phone numbers, as well as a complete and current payables-aging report.

 

16. SEVERABILITY. In the event any
one or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable in any respect, then
such provision shall be ineffective only to the extent of such prohibition or invalidity, and the validity, legality, and enforceability
of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

17. RELATIONSHIP OF PARTIES. The
relationship of the Parties hereto shall be that of Seller and Purchaser of Accounts and not that of borrower and lender, and neither
party is or shall be deemed a fiduciary of or to the other. This is a purchase and sale transaction and it does not constitute
financing. The rights, obligations and remedies contained herein shall inure to and be binding on the parties hereto and on their
respective legal representatives, successors and assigns

 

18. ATTORNEYS' FEES. Seller is obligated
to pay to Purchaser all of Purchaser's reasonable attorneys' fees, legal costs and expenses, collection, prosecution or defense
costs, travel expenses, and other expenses incurred by Purchaser in connection with this Agreement or in connection with enforcing
Purchaser's rights hereunder, or in connection with being involved in a legal action related hereto, or in responding to legal
process concerning Seller or any Account purchased hereunder.

 

19. ENTIRE AGREEMENT. This Agreement,
including all terms and conditions specified in any of the Schedules attached hereto, supersedes all prior or contemporaneous agreements
and understandings between the Parties, verbal or written, express or implied, relating to the subject matter hereof. No course
of dealing, course of performance or trade usage, and no parole evidence of any nature, shall be used to supplement or modify any
terms of this Agreement.

 

20. CHOICE OF LAW. This Agreement
and all transactions contemplated hereunder and/or evidenced hereby shall be governed by, construed under, and enforced in accordance
with the internal laws of the State of Alabama.

 

21. JURY TRIAL WAIVER. THE PARTIES
HERETO WAIVE ANY RIGHT TO TRIAL BY JURY IN ANY ACTION INVOLVING BOTH OF THEM, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE.

 

22. LEGAL ACTION. Any action between
the Parties shall, if Purchaser so elects, be instituted in the federal or state court located in Jefferson County, Alabama (the
"Acceptable Forum"). Each party irrevocably submits to the jurisdiction of the Acceptable Forum, and waives all attempts
to transfer to any other forums. Should any action be initiated in any other forum, Seller shall not oppose any attempt to have
the action transferred to the Acceptable Forum.

 

23. INDEMNIFICATION. Seller agrees
to indemnify, defend and hold Purchaser harmless from any and all claims, damages, actions, or judgments, including without limitation
those for attorney’s fees, which Purchaser may have to pay and defend against with respect to any third party claims arising
out of the transactions entered into pursuant to the terms and conditions of this Agreement other than claims, damages, actions,
or judgments arising out of Purchaser’s gross negligence or willful misconduct.

 

24. NOTICE. All notices required
hereunder must be in writing (paper or electronic) and shall be deemed received by Seller upon the earlier of actual receipt via
electronic transmittal, express courier, or other means or, if that fails, via first class United States Mail properly addressed
to the address first set forth above with a copy to 2112 First Avenue North, Birmingham, AL, 35203. All notices required to be
given to Seller shall be deemed given upon the first to occur of: deposit thereof in a receptacle under the control of the United
States Postal Service; transmittal by electronic or telephonic means to a receiver under the control of Seller, or actual receipt
by Seller or an employee or agent of Seller. All notices required to be given to Purchaser hereunder shall be deemed given upon
actual receipt by a responsible officer of Purchaser.

 

25. TIME IS OF THE ESSENCE. In all
matters pertaining to this Agreement, time is of the essence.

 

26. CONFIDENTIAL INFORMATION. In
handling any confidential information of Seller, Purchaser shall exercise the same degree of care that it exercises for its own
proprietary information, but disclosure of information may be made: (a) as required by law, regulation, subpoena, or other order;
(b) to Purchaser’s regulators or as otherwise required in connection with Purchaser’s examination or audit; (c)
as Purchaser considers appropriate in exercising remedies under this Agreement (provided, however, Purchaser shall use its best
efforts to obtain any prospective transferee’s or purchaser’s agreement to the terms of this provision); and (d) to
third-party service providers of Purchaser so long as such service providers have executed a confidentiality agreement with Purchaser
with terms no less restrictive than those contained herein. Confidential information of Seller includes any information concerning
the Company not disclosed in its public reports filed from time to time with the SEC and includes any such information that was
provided to Purchaser prior to the date of this Agreement.. Confidential information of Seller does not include information that
either: (i) is in the public domain or in Purchasers possession when disclosed to Purchaser, or becomes part of the public
domain after disclosure to Purchaser; or (ii) is disclosed to Purchaser by a third party, if Bank does not know that the third
party is prohibited from disclosing the information.

 

Purchaser may use confidential information
of the Seller for the development of databases, reporting purposes, and market analysis so long as such confidential information
is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Seller.  The provisions of
this section 26 shall survive the termination of this Agreement.

 

 

Please Initial     CR     

 

 

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	Porter Capital Corporation 	RECOURSE RECEIVABLES PURCHASE & SECURITY AGREEMENT

 

This
schedule is Schedule “A” to that Recourse Receivables Purchase & Security Agreement by and between Porter
Capital Corporation (Purchaser), and US Dataworks, Inc. (Seller)
and is incorporated therein and apart thereof. 

 

	Seller	US Dataworks, Inc.
	Credit Facility	Recourse Receivables Purchase & Security Agreement
	Minimum Average Monthly Volume	$150,000
	Line Amount	$1,000,000
	Initial Term	one (1) year
	Advance Rate	85% of Eligible Accounts being purchased
	Reserve Percentage	15% of the Unpaid Balance of Purchased Accounts
	Reserve Release Frequency Period	As requested by Seller provided same is available.
	Repurchase Period	Ninety(90) days From Invoice Date
	Service Fees	 	Service Fee Percent	Period
	Initial Period	0.90 % per period	First 30 days
	Subsequent Periods	0.90 % per period	Each 30 days thereafter
	Interest Rate	Prime Rate + Margin, As Used Herein, Margin shall mean 1.75%
	Due Diligence Fee	$395.00
	Origination/Renewal Fee	0.75% of Line Amount
	Wire Transfer Fee    	$25.00 Per Transfer
	ACH Transfer Fee	
        $10.00 Per Transfer

	Other Considerations	N/A

 

 

 Please Initial     CR     

 

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