Document:

Document

Exhibit 10.29

February 28, 2022
PNC BANK, NATIONAL ASSOCIATION,
as Agent for and on behalf of the
Lenders as referred to below
2100 Ross Avenue, Suite 1850
Dallas, Texas 75201
Attention:  Relationship Manager -Mammoth Energy

Re:    Fourth Amendment to Amended and Restated Revolving Credit and Security Agreement
Ladies and Gentlemen:
PNC BANK, NATIONAL ASSOCIATION (“PNC”), as agent for the Lenders from time to time party to the Credit Agreement referred to below (PNC, in such capacity, together with its successors and assigns in such capacity, the “Agent”) for the Lenders from time to time party to the Credit Agreement referred to below, the Lenders party thereto, MAMMOTH ENERGY SERVICES, INC., a corporation organized under the laws of the State of Delaware (formerly Mammoth Energy Services Inc.) (“Mammoth”), as a Borrower, and together with the other Borrowers party to the Credit Agreement referred to below, have previously entered into financing arrangements pursuant to that certain Amended and Restated Revolving Credit and Security Agreement, dated as of October 19, 2018, by and among Borrowers, Agent, and Lenders (as previously amended by the First Amendment to Amended and Restated Revolving Credit and Security Agreement, dated November 5, 2019, the Second Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of February 26, 2020, the Third Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of November 3, 2021, as amended hereby and as the same may hereafter be further amended, modified, supplemented, extended, renewed, restated or replaced, the “Credit Agreement”), and the Other Documents referred to therein or at any time executed and/or delivered in connection therewith or related thereto.  All capitalized terms used herein shall have the meaning assigned thereto in the Credit Agreement, unless otherwise defined herein.
Borrowers have requested that Agent and Lenders (a) amend certain financial covenants in the Credit Agreement and eliminate the Leverage Ratio financial covenant, and (b) provide for certain other amendments to the Credit Agreement; and Agent and Lenders are willing to agree to the foregoing, on and subject to the terms and conditions set forth in this letter agreement Re: Fourth Amendment to Amended and Restated Revolving Credit and Security Agreement (this “Fourth Amendment”).
In consideration of the foregoing, the mutual agreements and covenants contained herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:
1.Acknowledgment of Obligations, Security Interests and Financing Agreements.  
(a)Acknowledgment of Obligations.  Borrowers hereby acknowledge, confirm and agree that, as of the date hereof, Borrowers are unconditionally indebted to Agent and Lenders as of the close of business on February 25, 2022, in respect of the Advances in the aggregate principal amount of $83,536,804.68 and outstanding Letters of Credit in the Undrawn Amount of $8,538,184.50, together with interest accrued and accruing on the Advances, and all fees, costs, expenses and other sums and charges payable by Borrowers to Agent and Lenders 

pursuant to the Credit Agreement and the Other Documents, all of which are unconditionally owing by Borrowers to Agent and Lenders pursuant to the Credit Agreement and the Other Documents, in each case without offset, defense or counterclaim of any kind, nature or description whatsoever.  
(b)Acknowledgment of Security Interests.  Borrowers hereby acknowledge, confirm and agree that Agent and Lenders have, and shall continue to have, valid, enforceable and perfected security interests in and Liens upon the Collateral heretofore granted by Borrowers to Agent, for the benefit of Lenders and the other Secured Parties, pursuant to the Credit Agreement and the Other Documents or otherwise granted to or held by Agent.
(c)Binding Effect of Credit Agreement and Other Documents.  Borrowers hereby acknowledge, confirm and agree that:  (i) each of the Credit Agreement and the Other Documents to which Borrowers are a party has been duly executed and delivered to Agent and Lenders by Borrowers, and each is in full force and effect as of the date hereof, (ii) the agreements and obligations of Borrowers contained in the Credit Agreement and such Other Documents to which they are a party and in this Fourth Amendment constitute the legal, valid and binding Obligations of Borrowers, enforceable against them in accordance with their terms, except as enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to or limiting creditors’ rights generally or by equitable principles relating to enforceability, and Borrowers have no valid defense to the enforcement of such Obligations, and (iii) Agent and Lenders are and shall be entitled to the rights, remedies and benefits provided for in the Credit Agreement and the Other Documents and pursuant to applicable law, but subject to the terms and conditions of this Fourth Amendment. 
2.Amendments to Loan Agreement and Certain Additional Covenants.  
(a)Additional Definitions.  As used herein, the following terms shall have the meanings given to them below and the Credit Agreement and the Other Documents are hereby amended to include, in addition and not in limitation, the following definitions:
“Affected Financial Institution” shall mean (a) any EEA Financial Institution or (b) any UK Financial Institution.
“Bail-In Legislation Schedule” shall mean the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.
“Disposition” shall have the meaning set forth in the definition of Eligible Equipment Sublimit.
“Disposed Equipment” shall have the meaning set forth in the definition of Eligible Equipment Sublimit.
“Disposed Equipment Proceeds Carveout” shall have the meaning set forth in the definition of Eligible Equipment Sublimit.
“Fourth Amendment” shall mean the letter agreement Re:  Fourth Amendment to Amended and Restated Revolving Credit and Security Agreement, dated as of Fourth Amendment Effective Date, by and among Agent, Lenders, and Borrowers.
“Fourth Amendment Effective Date” shall mean the date of the Fourth Amendment. 
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“Fourth Amendment Fee Letter” shall mean the Fee Letter, dated as of February 28, 2022, executed among Borrowers, PNC Capital Markets LLC and PNC.
“MasTec” shall mean, collectively, MasTec Renewables Puerto Rico, LLC and MasTec, Inc.
“MasTec Settlement Agreement” shall mean the Settlement Agreement, dated August 2, 2021, executed among Cobra Acquisitions, LLC, Mammoth and MasTec.
“MasTec Settlement Payment” shall mean the two installment payments to be paid by Cobra Acquisitions, LLC to MasTec pursuant to the MasTec Settlement Agreement in the amount of $9,250,000 each on August 1, 2022 and December 1, 2022, respectively, together with interest that is payable with respect to each such installment payment at the rate set forth in the MasTec Settlement Agreement. 
“PREPA” shall mean Puerto Rico Electric Power Authority.
“PREPA Claim” shall mean the claims of Cobra Acquisitions LLC asserted in PREPA’s adjustment of debts proceeding filed pursuant to Title III of the Puerto Rico Oversight, Management, and Economic Stability Act in the United States District Court for the District of Puerto Rico.
“PREPA Claim Proceeds” shall mean any and all cash payments that are at any time received by the Loan Parties on account of the PREPA Claim.
“Resolution Authority” shall mean an EEA Resolution Authority or, with respect to any UK Financial Institution, a UK Resolution Authority.
“UK Financial Institution” shall mean any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates of such credit institutions or investment firms.
“UK Resolution Authority” shall mean the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.
(b)Applicable Margin.  The definition of “Applicable Margin” set forth in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
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““Applicable Margin” shall mean (a) four percent (4.00%) for all Revolving Advances and Swing Loans at all times solely during the period from and after the Fourth Amendment Effective Date through and including the last day of the first fiscal quarter following the Fourth Amendment Effective Date for which Borrowers have a Fixed Charge Coverage Ratio of at least 1.10:1.00 for the four (4) fiscal quarter period then ending (the “Applicable Margin Reduction Event”, and (b) three and one-half percent (3.50%) for all Revolving Advances and Swing Loans from and after the occurrence of the Applicable Margin Reduction Event.
(c)The definition of “Bail-In Legislation” set forth in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows: 
“Bail-In Legislation” shall mean (a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency proceedings).
(d)Unavailability of LIBOR Rate Loans.  Notwithstanding anything to the contrary set forth in Section 2.2 of the Credit Agreement or in any other Section, definition or provision of the Credit Agreement or any Other Document, at all times from and after the Fourth Amendment Effective Date, (i) Borrowers shall have no right to request or receive LIBOR Rate Loans for any Advance or to convert any existing Domestic Rate Loans to LIBOR Rate Loans, (ii) Agent and Lenders shall have no obligation whatsoever to provide LIBOR Rate Loans for any Advance or to convert any existing Domestic Rate Loans to LIBOR Rate Loans, (iii) all LIBOR Rate Loans that are outstanding on the Fourth Amendment Effective Date shall automatically convert to and shall constitute Domestic Rate Loans as of the expiration of each currently existing Interest Period with respect to each of such outstanding LIBOR Rate Loans, and (iv) all Advances made (or deemed made) by Agent and Lenders to Borrowers at any time from and after the Fourth Amendment Effective Date shall constitute Domestic Rate Loans.    
(e)Commitment Amount.  The definition of “Commitment Amount” in Section 1.2 of the Credit Agreement is hereby amended by amending and restating clause (ii) thereof in its entirety as follows:
“(ii) as to any Lender that is a New Lender, the Commitment Amount provided for in the joinder signed by such New Lender under Section 2.24(a)(ix) in each case as the same may be adjusted upon any increase by such Lender pursuant to Section 2.24 hereof, upon any decrease thereof pursuant to Section 2.25 hereof, or any assignment by or to such Lender pursuant to Section 16.3(c) or (d) hereof.”
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(f)Fixed Charge Coverage Ratio.  The definition of “Fixed Charge Coverage Ratio” in Section 1.2 of the Credit Agreement is hereby amended by (i) deleting the phrase “for the four fiscal quarter period then ending” set forth on the second line of such definition and replacing it with “for any applicable period”, and (ii) adding the following sentence at the end of such definition:
“Notwithstanding the foregoing, for purposes of the calculation of the Fixed Charge Coverage Ratio, EBITDA and Adjusted EBITDA shall expressly exclude all accrued interest with respect to the PREPA Claim that would otherwise be included by Borrowers in the calculation of EBITDA and Adjusted EBITDA for any period.”
(g)The definition of “Write-Down and Conversion Powers” set forth in Section 1.2 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“Write-Down and Conversion Powers” shall mean, (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary to any of those powers.
(h)Mandatory Prepayment with PREPA Claim Proceeds.  Section 2.20(b) of the Credit Agreement is hereby amended by amending and restating the first sentence thereof in its entirety to read as follows:
“(b)    Notwithstanding anything to the contrary set forth in Section 2.8 or Section 2.20(a) above, at all times from and after the Fourth Amendment Effective Date, Borrowers shall promptly (but in no event more than three (3) Business Days following receipt of any PREPA Claim Proceeds) remit to Agent (or cause to be remitted to Agent) all PREPA Claim Proceeds that are at any time received by Credit Parties and, until the date of delivery thereof to Agent, such PREPA Claim Proceeds shall be and shall be deemed to be held in trust exclusively for Agent.”    
(i)Reduction in Maximum Revolving Advance Amount.  Section 2.25 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
““2.25.    Reduction of Maximum Revolving Advance Amount.  Borrowing Agent may no more than once during each period of twelve months, on at least three (3) Business Days’ prior 
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written notice received by Agent (which shall promptly advise each Lender thereof) permanently reduce the Maximum Revolving Advance Amount, minimum increments of $10,000,000 to an amount not less than the amount of the then outstanding Advances.  The Maximum Revolving Advance Amount shall be automatically (without any notice to Borrowers) permanently reduced by an amount equal to fifty percent (50%) of all PREPA Claim Proceeds that have been remitted to Agent pursuant to Section 2.20(b), provided, however, that such reduction shall not reduce the Maximum Revolving Advance Amount below the sum of (i) Eligible Receivables and (ii) Eligible Unbilled Receivables, in each case as set forth in the Borrowing Base Certificate most recently delivered to Agent at the time of such reduction.  All reductions of the Maximum Revolving Advance Amount shall be applied ratably among the Lenders according to their respective Commitment Amounts. For the avoidance of doubt, voluntary prepayments on the unutilized portion of the Maximum Revolving Advance Amount coupled with any permanent reduction of the Maximum Revolving Advance Amount effected pursuant to the immediately preceding sentence will be subject to (x) payment of breakage costs in the case of a prepayment of LIBOR Rate Loans other than on the last day of the relevant Interest Period, and (y) any other provisions contained in this Agreement.”
(j)Amendment of Eligible Equipment Sublimit.  The definition of “Eligible Equipment Sublimit” is hereby amended by amending and restating in its entirety the proviso in clause (b) of such definition as follows:
“provided, however, (i) in the event that Borrower sells, transfers or otherwise disposes of any Eligible Equipment included in the calculation of clause (vi) of Section 2.1(a)(y) or any such Eligible Equipment is subject to a casualty event after the Second Amendment Effective Date (any such sale, transfer, disposition or casualty event being referred to as a “Disposition”, and any Eligible Equipment that is the subject of a Disposition being referred to as “Disposed Equipment”), the Eligible Equipment Sublimit shall be thereupon further reduced by an amount equal to the Equipment Advance Rate times the net orderly liquidation value of such Disposed Equipment pursuant to the most recent NOLV Appraisal, except that Dispositions of Disposed Equipment pursuant to one or more Permitted Sale-Leaseback Transactions that occur subsequent to the Fourth Amendment Effective Date shall, in an aggregate amount of up to $5,000,000 in proceeds arising therefrom, not result in any reduction in the Eligible Equipment Sublimit (the “Disposed Equipment Proceeds Carveout”), (ii) in the event that PREPA Claim Proceeds are at any time remitted to Agent pursuant to Section 2.20(b), then the Eligible Equipment Sublimit shall be reduced by an amount equal to fifty percent (50%) of all PREPA Claim Proceeds that have been remitted to Agent (regardless of whether such PREPA Claim Proceeds are applied to repay Advances or are made available to Borrowing Agent in accordance with Section 2.20(b)), and (iii) a reduction in the Eligible Equipment Sublimit as a result of a Disposition in any calendar quarter pursuant to the immediately 
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preceding clause (i) or clause (ii) shall in no event limit or affect the regularly scheduled Quarterly Reduction for any calendar quarter thereafter pursuant to this clause (b). 
(k)Elimination of Accordion.  Section 2.24 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“2.24    [Reserved]”  
(l)Rolling Stock Lien Perfection. Section 4.13 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“4.13.    Rolling Stock and other Titled Vehicles.  Notwithstanding anything to the contrary set forth in Section 4.2 or any other Section of this Agreement which obligates Borrowers to take action that may be necessary to maintain the perfection of Agent’s Liens with respect to all Collateral, solely in the case of rolling stock and other Equipment that is subject to a certificate of title and with respect to which Agent’s Liens therein can only be perfected by notation of Agent’s Liens on the certificate of title issued with respect thereto (“Certificated Collateral”), Borrowers shall deliver to Agent each certificate of title for Certificated Collateral with an individual value in excess of $74,999.99 (the “Minimum Certificated Collateral Value”; which valuation of Certificated Collateral shall be determined at any time based upon the then most recent appraisal received by Agent pursuant to Section 4.7) for notation by Agent of its Lien thereon, together with the following documents, each in form and substance reasonably satisfactory to Agent:  (i) a fully-executed, notarized power of attorney authorizing Corporation Service Company (or any other third party agency at any time retained by Agent to perfect Agent’s Liens on Certificated Collateral) to perfect Agent’s Liens, on behalf of Agent, on each certificate of title for Certificated Collateral; (ii) new unencumbered titles for each such item of Certificated Collateral within ten (10) Business Days of receipt by a Loan Party of a new title certificate for such Certificated Collateral, and such Loan Party shall use its commercially reasonably best efforts to obtain and deliver to Agent each such new title certificate within thirty (30) days of purchase; and (iii) solely in the case of titles for each item of Certificated Collateral with a valuation in excess of the Minimum Certificated Collateral Value as of the Fourth Amendment Effective Date, each applicable Loan Party that is the registered title owner of such Certificated Collateral shall use its commercially reasonably best efforts to deliver to Agent, within thirty (30) days after the Fourth Amendment Effective Date (or such later date as shall be approved by Agent in its discretion), each such title certificate issued with respect to such Certificated Collateral.  Additionally, each Loan Party acknowledges and agrees that after the occurrence and during the continuance of an Event of Default, upon Agent’s request, Loan Parties shall to deliver to Agent the items described in clauses (i) and (ii) above with respect to all items of Certificated Collateral as shall be required by Agent (including (without limitation) all such 
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Certificated Collateral with an individual value of less than Minimum Certificated Collateral Value).”  
(m)Minimum Adjusted EBITDA Financial Covenant.  Section 6.5(a) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“(a)    Minimum Adjusted EBITDA.  Maintain Adjusted EBITDA for the five (5) months ending May 31, 2022 of not less than $4,700,000; provided, that, the calculation of EBITDA and Adjusted EBITDA for purposes of this financial covenant shall expressly exclude all accrued interest with respect to the PREPA Claim that would otherwise be included by Borrowers in the calculation of EBITDA and Adjusted EBITDA for any period.”  
(n)Elimination of Leverage Ratio.  Section 6.5(b) of the Credit Agreement is hereby is hereby amended and restated in its entirety to read as follows:
“6.5(b)    [Reserved]”  
(o)Minimum Excess Availability.  Section 6.5(c) of the Credit Agreement is hereby is hereby amended and restated in its entirety to read as follows:
“(c)    Minimum Excess Availability.  Maintain Excess Availability in an amount not less than (a) $7,500,000 at all times during the period from and after the Fourth Amendment Effective Date through and including the earlier to occur of (i) March 31, 2022 and (ii) the date on which Agent shall have received proceeds of Permitted Sale-Leaseback Transactions that occur subsequent to the Fourth Amendment Effective Date in an aggregate amount equal to the Disposed Equipment Proceeds Carveout, and (b) $10,000,000 at all times thereafter; provided, however, that, (i) notwithstanding anything to the contrary contained in Section 10.5 of the Credit Agreement, if Borrowers fail to comply with this covenant on any day, an Event of Default shall not be deemed to have occurred as a result thereof unless Excess Availability remains below the amount required by this Section 6.5(c) for a total of three (3) consecutive Business Days, inclusive of the first day on which such non-compliance occurred, and (ii) during such three (3) Business Day period, consistent with Section 8.2(b) hereof, no Advances shall be made and no Letters of Credit shall be issued to Borrowers, except that Agent, in its sole discretion, may continue to make Advances notwithstanding the existence of such Default or Event of Default arising from such non-compliance, and any Advances so made shall not be deemed a waiver of any such Default or Event of Default.  The Minimum Excess Availability shall be reduced automatically upon any reduction in Maximum Revolving Advance amount under Section 2.25 in an amount based upon the same percentage by which the Maximum Revolving Advance has been so reduced.” 
(p)Fixed Charge Coverage Ratio.  Section 6.5(d) of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
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“(d)    Fixed Charge Coverage Ratio.  Maintain a Fixed Charge Coverage Ratio of at least (i) 0.85:1.00 for the six (6) months ending as of June 30, 2022, (ii) 1.10:1.00 for the nine (9) months ending as of September 30, 2022, and (iii) 1.10:1.00 for the four (4) fiscal quarter period ending as of the fiscal quarter ending December 31, 2022 and for each four (4) fiscal quarter period ending as of the last day of each fiscal quarter thereafter.”
(q)Acquisitions, Investments, Dividends and Distributions Prohibited.  Notwithstanding anything to the contrary set forth in Section 7.1(a), Section 7.4 and Section 7.7 of the Credit Agreement or any defined terms that are used in such Sections, from and after the Fourth Amendment Effective Date, no Credit Party shall (i) consummate any Permitted Acquisitions, (ii) enter into any Permitted Joint Venture Investments, (iii) consummate any transaction that would otherwise constitute a Permitted Investment pursuant to clause (f) of the definition of Permitted Investments with respect to Unrestricted Subsidiaries or clause (i) thereof, except that, from and after the Fourth Amendment Effective Date, Credit Parties shall be permitted to consummate any transaction that would constitute a Permitted Investment pursuant to clause (f) of the definition of Permitted Investment so long as (A) no Default or Event of Default then exists or will result therefrom and (B) after giving effect to such Permitted Investment in an Unrestricted Subsidiary, pro forma Excess Availability will be no less than 22.5% of the Maximum Available Credit, or (iv) declare, pay or make any dividend or distribution on any Equity Interests of any Borrower that would otherwise constitute Permitted Dividends (other than dividends or distributions payable in its Equity Interests, or split-ups or reclassifications of its Equity Interests).
(r)Restricted Payments.  Section 7.17 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“7.17.    Prepayment of Indebtedness; Certain Restricted Payments.
(a)If an Event of Default has occurred and continues, at any time, directly or indirectly, prepay any Indebtedness (other than (i) to Lenders, (ii) to another Credit Party or (iii) Purchase Money Indebtedness or Capitalized Lease Obligations), or repurchase, redeem, retire or otherwise acquire any Indebtedness of any Borrower, without the consent of Required Lenders.
(b)Pay or prepay any MasTec Settlement Payment unless on the date of any such payment or prepayment and after giving pro forma effect thereto, (i) no Default or Event of Default has occurred and is then continuing and (ii) Borrower shall have Excess Availability of not less than $20,000,000.”
(s)Bail-In of Affected Financial Institutions.  Section 16.22 of the Credit Agreement is hereby amended and restated in its entirety to read as follows:
“16.18.    Acknowledgment and Consent to Bail-In of Affected Financial Institutions.  Notwithstanding anything to the contrary contained in this Agreement, any Other 
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Document, or any other agreement, arrangement or understanding among Agent, Lenders and the Loan Parties, Agent, each Lender and each Loan Party acknowledges that any liability of any Affected Financial Institution arising under this Agreement or any Other Document, to the extent such liability is unsecured, may be subject to the Write-Down and Conversion Powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by:
(a)    the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising hereunder or under any Other Document which may be payable to it by any party hereto that is an Affected Financial Institution; and
(b)    the effects of any Bail-In Action on any such liability, including, if applicable:
(i)    a reduction in full or in part or cancellation of any such liability;
(ii)    a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any Other Document; or
(iii)    the variation of the terms of such liability in connection with the exercise of the Write-Down and Conversion Powers of the applicable Resolution Authority.”
3.Financial Covenant Compliance Waiver.  Notwithstanding anything to the contrary set forth in Sections 6.5(b) and 6.5(d) of the Credit Agreement (the “Applicable Covenant Sections”), the Lenders hereby waive compliance by the Credit Parties with the Applicable Covenant Sections for the fiscal quarters ending September 30, 2021 and December 31, 2021, respectively.
4.Representations, Warranties and Covenants.  Credit Parties hereby represent, warrant and covenant to Agent and Lenders the following (which shall survive the execution and delivery of this Fourth Amendment), the truth and accuracy of which are a continuing condition of the making of Advances to Borrowers:
(a)This Fourth Amendment and each other agreement or instrument to be executed and delivered by Credit Parties in connection herewith (collectively, together with this Fourth Amendment, the “Amendment Documents”) have been duly authorized, executed and delivered by all necessary action on the part of Credit Parties, and the agreements and obligations of Credit Parties contained herein and therein constitute the legal, valid and binding obligations of Credit Parties, enforceable against them in accordance with their terms, except as enforceability is limited by bankruptcy, insolvency, reorganization, receivership, moratorium or other laws affecting creditor’s rights generally and by general principles of equity;
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(b)The execution, delivery and performance of this Fourth Amendment (i) are all within Credit Parties’ corporate or limited liability company powers, as applicable, (ii) are not in contravention of law or the terms of Credit Parties’ certificate or articles of organization or formation, operating agreement or other organizational documentation, or any indenture, agreement or undertaking to which Credit Parties are a party or by which Credit Parties or their property are bound and (iii) shall not result in the creation or imposition of any Lien, claim, charge or encumbrance upon any of the Collateral, other than Permitted Encumbrances;
(c)All of the representations and warranties set forth in the Credit Agreement and the Other Documents, each as amended hereby, are true and correct in all material respects on and as of the date hereof, as if made on the date hereof, except to the extent any such representation or warranty is made as of a specified date, in which case such representation or warranty shall have been true and correct in all material respects as of such date; and
(d)After giving effect to this Fourth Amendment, no Default or Event of Default exists as of the date of this Fourth Amendment.
5.Conditions Precedent.  The amendments set forth in Section 2 of this Fourth Amendment and the other agreements set forth in this Fourth Amendment shall not be effective until each of the following conditions precedent are satisfied in a manner satisfactory to Agent:
(a)the receipt by Agent of this Fourth Amendment, duly authorized and executed by Credit Parties, Lenders and Agent, duly authorized and executed by Credit Parties and Agent; 
(b)payment by Borrowers to Agent (for the benefit of Agent and Lenders in accordance with separate agreements between Agent and each Lender), of the fees set forth in Fourth Amendment Fee Letter; and
(c)immediately after giving effect to the amendments and agreements set forth herein, there shall exist no Default and no Event of Default.
6.Effect of this Amendment.  This Fourth Amendment constitutes the entire agreement of the parties with respect to the subject matter hereof and thereof, and supersedes all prior oral or written communications, memoranda, proposals, negotiations, discussions, term sheets and commitments with respect to the subject matter hereof and thereof.  This Fourth Amendment constitutes an Other Document.  Except as expressly amended and waived pursuant hereto, no other changes or modifications or waivers to Credit Agreement and the Other Documents are intended or implied, and in all other respects the Credit Agreement and Other Documents are hereby specifically ratified, restated and confirmed by all parties hereto as of the effective date hereof.  To the extent that any provision of the Credit Agreement or any of the Other Documents are inconsistent with the provisions of this Amendment, the provisions of this Amendment shall control.
7.Release of Agent and Lenders; Covenant Not to Sue.  
(a)In consideration of the agreements of Agent and Lenders contained herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Credit Parties, on behalf of themselves and their agents, representatives, officers, directors, advisors, employees, subsidiaries, affiliates, successors and assigns (collectively, “Releasor”), hereby absolutely, unconditionally and irrevocably release and forever discharge Agent or any or all of the Lenders in any capacity and their respective affiliates, subsidiaries, shareholders and “controlling persons” (within the meaning of the federal securities laws), and their respective successors and assigns and each and all of the officers, directors, employees, 
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agents, attorneys and other representatives of each of the foregoing (Agent and Lenders and all such other parties being hereinafter referred to collectively as the “Lender Releasees” and individually as a “Lender Releasee”), of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money, accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities whatsoever (individually, a “Claim” and collectively, “Claims”) of every kind and nature, known or unknown, suspected or unsuspected, both at law and in equity, which such Releasor may now or hereafter own, hold, have or claim to have against the Lender Releasees or any of them for, upon, or by reason of any nature, cause or thing whatsoever which arises from the beginning of the world to the day of execution of this Fourth Amendment, in each case solely for or on account of, or in relation to, or in any way in connection with the Credit Agreement or any of the Other Documents, as amended and supplemented through the date hereof.
(b)Credit Parties understand, acknowledge and agree that the release set forth above may be pleaded as a full and complete defense and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or attempted in breach of the provision of such release.
(c)Credit Parties agree that no fact, event, circumstance, evidence or transaction which could now be asserted or which may hereafter be discovered shall affect in any manner the final and unconditional nature of the release set forth above.
(d)Credit Parties, on behalf of themselves and their successors, assigns, and other legal representatives, hereby absolutely, unconditionally and irrevocably covenant and agree with each Releasee that they will not sue (at law, in equity, in any regulatory proceeding or otherwise) any Releasee on the basis of any Claim released, remised and discharged by Releasors pursuant to Section 6(a) above.  If any Releasor violates the foregoing covenant, such Releasor agrees to pay, in addition to such other damages as any Releasee may sustain as a result of such violation, all reasonable and documented attorneys’ fees and costs incurred by any Releasee as a result of such violation.
8.Reviewed by Attorneys.  Credit Parties represent and warrant that they:  (a) understand fully the terms of this Fourth Amendment and the consequences of the execution and delivery hereof, (b) have been afforded an opportunity to have this Fourth Amendment reviewed by, and to discuss the same with, such attorneys and other persons as Credit Parties may wish, and (c) have each entered into this Fourth Amendment of its own free will and accord and without threat, duress or other coercion of any kind by any person.  Credit Parties acknowledge and agree that this Fourth Amendment shall not be construed more favorably in favor of Borrowers, on the one hand, or Agent and Secured Parties, on the other hand, based upon which party drafted the same, it being acknowledged that Agent and Secured Parties and Credit Parties contributed substantially to the negotiation and preparation of this Fourth Amendment.
9.Further Assurances.  Credit Parties shall execute and deliver such additional documents and take such additional action as may be reasonably requested by Agent to effectuate the provisions and purposes of this Fourth Amendment.
10.Governing Law.  The rights and obligations hereunder of each of the parties hereto shall, in accordance with Section 5-1401 of the General Obligations Law of the State of New York, be governed by and construed in accordance with the laws of the State of New York applied to contracts to be performed wholly within the State of New York.
11.Binding Effect.  This Fourth Amendment shall be binding upon and inure to the benefit of each of the parties hereto and their respective successors and assigns.
12

12.Counterparts.  This Fourth Amendment may be executed in any number of counterparts, but all of such counterparts shall together constitute but one and the same agreement.  In making proof of this Fourth Amendment, it shall not be necessary to produce or account for more than one counterpart thereof signed by each of the parties hereto.  Delivery of an executed counterpart of this Fourth Amendment by telecopier shall have the same force and effect as delivery of an original executed counterpart of this Fourth Amendment.  Any party delivering an executed counterpart of this Fourth Amendment by telecopier also shall deliver an original executed counterpart of this Fourth Amendment, but the failure to deliver an original executed counterpart shall not affect the validity, enforceability, and binding effect of this Fourth Amendment as to such party or any other party.
[SIGNATURE PAGES FOLLOW]
13

MAMMOTH ENERGY SERVICES, INC.
MAMMOTH ENERGY PARTNERS LLC
REDBACK ENERGY SERVICES LLC
REDBACK COIL TUBING LLC
REDBACK PUMPDOWN SERVICES LLC
MUSKIE PROPPANT LLC
PANTHER DRILLING SYSTEMS LLC
BISON DRILLING AND FIELD SERVICES LLC
BISON TRUCKING LLC
ANACONDA RENTALS LLC
GREAT WHITE SAND TIGER LODGING LTD.
STINGRAY PRESSURE PUMPING LLC
SILVERBACK ENERGY LLC
MAMMOTH ENERGY INC.
BARRACUDA LOGISTICS LLC
WTL OIL, LLC
MR. INSPECTIONS LLC
SAND TIGER HOLDINGS INC.
MAMMOTH EQUIPMENT LEASING LLC
COBRA ACQUISITIONS LLC
LION POWER SERVICES LLC

By:    /s/ Mark Layton                                          
Name:    Mark Layton                                               
Title:    Chief Financial Officer                               

[Signature Page to Third Amendment– Mammoth]

[Signatures Continued from Previous Page]
PIRANHA PROPPANT LLC
MAKO ACQUISITIONS LLC
HIGHER POWER ELECTRICAL, LLC
STURGEON ACQUISITIONS LLC
TAYLOR FRAC, LLC
TAYLOR REAL ESTATE INVESTMENTS, LLC
SOUTH RIVER ROAD, LLC
STINGRAY ENERGY SERVICES LLC
STINGRAY CEMENTING LLC
5 STAR ELECTRIC, LLC
DIRE WOLF ENERGY SERVICES LLC
MAMMOTH EQUIPMENT LEASING II LLC
BISON SAND LOGISTICS LLC
TIGER SHARK LOGISTICS LLC
WOLVERINE SAND LLC
ANACONDA MANUFACTURING LLC
BLACK MAMBA ENERGY LLC
STINGRAY CEMENTING AND ACIDIZING LLC
AQUAHAWK ENERGY LLC
AQUAWOLF LLC
IVORY FREIGHT SOLUTIONS LLC
ORCA ENERGY SERVICES LLC
SEAWOLF ENERGY SERVICES LLC
SILVERBACK LOGISTICS LLC
IFX TRANSPORT LLC
PYTHON EQUIPMENT LLC
FALCON FIBER SOLUTIONS LLC
PREDATOR AVIATION LLC

By:    /s/ Mark Layton                                          
Name:    Mark Layton                                               
Title:    Chief Financial Officer                               

[Signature Page to Fourth Amendment– Mammoth]

[Signatures Continued from Previous Page]
Acknowledged and Agreed:
			
	PNC BANK, NATIONAL ASSOCIATION,
as Lender and as Agent

	By:    /s/ Ron Zeiber                         
Name:    Ron Zeiber                             
Title:    Senior Vice President             
Commitment Percentage: 54.054054%
Commitment Amount: $64,864,864.86

	
	BARCLAYS BANK PLC,
as a Lender

	By:     /s/ Sydney G. Dennis              
Name:    Sydney G. Dennis                   
Title:    Director                                   
Commitment Percentage: 18.918919%
Commitment Amount: $22,702,702.70
CREDIT SUISSE AG, Cayman Islands Branch,
as a Lender

By:    /s/ Ranjit Lakhanpal               
Name:    Ranjit Lakhanpal                    
Title:    Authorized Signatory             
By:    /s/ Lawrence Park                  
Name:    Lawrence Park                       
Title:    Authorized Signatory             
Commitment Percentage: 13.513514%
Commitment Amount: $16,216,216.22

[Signatures Continued on Next Page]
[Signature Page to Fourth Amendment– Mammoth]

[Signatures Continued from Previous Page]

  Acknowledged and Agreed:

			
	UMB BANK, N.A.,
as a Lender

	By:    /s/ Thomas J. Zeigler             
Name:    Thomas J. Zeigler                  
Title:    Senior Vice President            
Commitment Percentage: 13.513514%
Commitment Amount: $16,216,216.22

[Signature Page to Fourth Amendment– Mammoth]Exhibit
10.1

 

 

PURCHASE
AGREEMENT

 

This
Purchase Agreement (“Agreement”) is made and entered into as of 2/28/2022 , by and between CFG Merchant Solutions,
LLC, a Delaware limited liability company located at 180 Maiden Lane 15th Floor, New York, NY 10038 (“Buyer”), as Buyer,
and MCA NAPLES, LLC DBA MCA NAPLES located at 2626 Goodlette-Frank Road, Naples, FL, 34103 (hereafter “Seller”),
as Seller. Capitalized terms not otherwise defined herein, shall have the same meanings ascribed to them in the Uniform Commercial Code
as adopted in the State of New York (“UCC”) and the Fee Structure Addendum as applicable.

 

	SCHEDULE OF PURCHASED RECEIPTS	 	 	 
	 	 	 	 
	Purchase
                                            Price:
 (The
                                            dollar amount that Buyer is paying for the Amount Sold of Seller’s Future Receivables.)
	 	$	450,000.00	 
	Amount
                                 Sold:
 (The
                                            dollar value of the Future Receipts being sold.)
	 	$	585,000.00	 
	Purchased
                                 Percentage:
 (The
                                            percentage of Future Receipts Seller agrees to remit to Buyer on a daily basis.)
	 	 	15.0	%
	Daily
                                 Amount:
 (The
                                            dollar amount eligible to be collected from Seller’s Bank Account each business day
                                            that represents the average monthly sales x Purchased Percentage / average business days
                                            in calendar month.)
	 	$	2,600.00	 
	Weekly
                                 Amount:
 (The
                                            Daily Amounts are to be collected at the end of each week, with each weekly collection to
                                            equal 5 times the Daily Amount, representing a 5-day week, subject to the terms and conditions
                                            below.)
	 	$	13,000.00	 
	Facility
                                 Fee:
 (Shall
                                            be deducted from the initial advance.)
	 	$	2,999.00	 
	Contract
                                 Origination Fee:
 (Shall
                                            be deducted from the initial advance.)
	 	$	79.00	 
	Wire
                                 Fee:
 (Shall
                                            be deducted from the initial advance.)
	 	$	95.00	 
	ACH
                                 Program Fee:
 (Shall
                                            be deducted from the initial advance.)
	 	$	2,827.00	 
	Risk
                                 Assessment Fee:
 (Shall
                                            be deducted from the initial advance.)
	 	$	2,999.00	 

 

PURCHASE
AND SALE OF FUTURE RECEIPTS

 

	1.	Sale
    of Future Receipts. Seller agrees to sell to Buyer, in consideration of the Purchase Price as specified in the Schedule of Purchased
    Receipts, the Amount Sold, by delivering the Purchased Percentage of the proceeds of each future sale made by Seller (“Future
    Receipts”), including amounts due from Seller’s credit card processor (hereafter “Processor”). “Future
    Receipts” includes all payments made by cash, check, ACH or other electronic transfer, credit card, debit card, bank card,
    charge card or other form of monetary payment in the ordinary course of Seller’s business. As payment for the Amount Sold,
    Buyer will deliver to Seller the Purchase Price, shown above, minus any fees shown above. Seller acknowledges that it has no right
    to repurchase the Amount Sold from Buyer.

 

    	 	 	_______________	 	______________
	CFG Merchant Solutions, LLC	Page | 1	Seller’s Initials	 	Seller’s Initials

     

    

 

	2.	Collection
                                            of Future Receipts; Collection Authorization; Collection Frequency. Buyer will be entitled
                                            to collect on a daily basis the cash attributable to the Daily Amount of the Future Receipts
                                            as specified in the Schedule of Purchased Receipts. Buyer agrees to accept the remittance
                                            of the Daily Amount in one of the following methods: (a) directly from the Processor; (b)
                                            by debiting the Seller’s bank account; or (c) by debiting a deposit account established
                                            by Seller that is approved by Buyer. Buyer may decide in its sole discretion which of the
                                            three methods it will accept for the remittance of the Daily Amount and will notify Seller
                                            in advance which method of remittances Buyer selects from
time to time. Seller authorizes Buyer to select the method on a daily basis, in Buyer’s reasonable discretion. Seller understands
that this authorization is a fundamental condition to induce Buyer to enter into this Agreement. Buyer and Seller agree that collection
frequency of the Daily Amount shall be on a weekly basis, with each weekly collection to equal 5 times the Daily Amount (representing
a 5 business day week) provided, however, that upon any breach or default of this Agreement by Seller, Buyer, at Buyer’s sole option
and without prior notice, may change the collection frequency to daily collection of the Daily Amount, in addition to any and all other
rights and remedies Buyer may have under this Agreement, at law, or in equity.

 

		a.	Directly
                                            from Processor. If Buyer agrees to accept the remittance of the Daily Amount directly
                                            from the Processor, Seller agrees to enter into an agreement with Processor that authorizes
                                            Processor to deliver the Daily Amount directly to Buyer rather than to Seller. This authorization
                                            shall be irrevocable, absolute and unconditional. Seller hereby irrevocably grants Processor
                                            the right to hold the Daily Amount and remit to Buyer directly (at, before or after the time
                                            Processor credits or remits to Seller the balance of the Future Receipts not sold by Seller
                                            to Buyer). Seller acknowledges and agrees that Processor may provide Buyer with Seller’s
                                            Payment Device processing history, including without limitation Seller’s chargeback
                                            experience and any communications about Seller received by Processor from a card processing
                                            system. Seller acknowledges that Buyer does not have any power or authority to control the
                                            Processor’s actions with respect to the authorization, clearing, settlement
                                            and other processing of transactions and that Buyer is not responsible for the Processor’s
                                            actions. Seller agrees to hold Buyer harmless for the Processor’s actions or omissions.
                                            Before 5:00 P.M. EST of the day following each day that Seller conducts business, Seller
                                            shall cause Processor or Processor’s agent to deliver to Buyer, in a format acceptable
                                            to Buyer, a record from Processor reflecting the total gross dollar amount of the preceding
                                            day’s debit and credit card transactions processed by Seller, irrespective of whether
                                            such amount consists of sales, taxes or other amounts collected by Seller from its customers
                                            (hereafter “Daily Batch Amount”). In the event that Seller is unable to procure
                                            Processor’s compliance in a timely manner or as otherwise required under this section,
                                            within two (2) business days’ written notice from Buyer to Seller of the same, Seller
                                            shall, at its sole expense, terminate its relationship with Processor and exclusively engage
                                            the services of an alternative credit card processor that Buyer approves in writing, which
                                            credit card processor shall thereafter be referred to and included within the meaning of
                                            “Processor” herein.

 

		b.	Debiting
                                            Seller’s Bank Account. If Buyer agrees to accept the remittance of the Daily Amount
                                            by debiting the Seller’s bank account, Seller irrevocably authorizes Buyer or its designated
                                            successor or assignee to withdraw the Daily Amount by initiating a debit via the Automated
                                            Clearing House (ACH) system or any other electronic means, or any other means deemed appropriate
                                            to debit entries to Seller’s account at the bank that Seller may designate to Buyer,
                                            from time to time (hereafter “Bank Account”) or by means of a split funds or
                                            lock box arrangement with a Processor or other third party. Seller agrees to take such action,
                                            including the execution of agreements with third parties, as Buyer may require to obtain
                                            the Daily Amount by means of the methods described above. In the event that Buyer withdraws
                                            erroneously from the Bank Account, Seller authorizes Buyer to credit the Bank Account for
                                            the amount erroneously withdrawn. Buyer shall not be required to credit the Bank Account
                                            for amounts withdrawn related to credit card transactions which are subsequently reversed
                                            for any reason. Buyer, in its sole discretion, may elect to offset any such amount from collections
                                            from Future Receipts.

 

		c.	Debiting
                                            an Approved Account. If Buyer agrees to accept the remittance of the Daily Amount by
                                            debiting a Bank Account established by Seller that is approved by Buyer (“Approved
                                            Account”), Seller agrees to complete all necessary forms to establish the Approved
                                            Account. Seller acknowledges and agrees that any funds deposited into the Approved Account
                                            by Seller’s card processor will remain in the Approved Account until the Daily Amount
                                            is withdrawn by Buyer and then the remaining funds, minus any amount required to maintain
                                            the minimum balance for the Approved Account, will be forwarded to Seller’s Bank Account.
                                            If the Approved Account requires a minimum account balance, Buyer may, in its sole discretion,
                                            fund the required minimum balance for the Approved Account out of the Seller
shall pay all fees and charges allowable under this Agreement together with all of the fees and charges set forth on the Fee Structure
Addendum, attached hereto as Exhibit A and incorporated by reference immediately upon assessment. Buyer is not required to provide notice
to Seller prior to the assessment of any of the fees and charges set forth in this Agreement or any of the fees and charges set forth
in the Fee Structure Addendum. In addition, Buyer may upon prior notice to Seller change any of the fees or charges under this Agreement
and/or under the Fee Structure Addendum.

 

	3.	Power
                                            of Attorney. Seller irrevocably appoints Buyer as its agent and attorney-in-fact with
                                            full authority to take any action or execute any instrument or document to settle all obligations
                                            due to Seller from any bank or Processor, or in the case of an occurrence of an event of
                                            Default under Section 13 hereof, to Buyer under this Agreement, including without limitation
                                            (i) to obtain and adjust insurance; (ii) to collect monies due or to become due under or
                                            in respect of any of the Amount Sold; (iii) to receive, endorse and collect any checks, notes,
                                            drafts, instruments, documents or chattel paper in connection with clause (i) or clause (ii)
                                            above; (iii) to sign Seller’s name on any invoice, bill of lading, or assignment directing
                                            customers or account debtors to make payment directly to Buyer; (iv) to file any claims or
                                            take any action or institute any proceeding that Buyer may deem necessary for the collection
                                            of any of the undelivered Amount Sold, or otherwise to enforce its rights with respect to
                                            payment of the Amount Sold. In connection therewith, all costs, expenses and fees, including
                                            legal fees, shall be payable by and from Seller and Buyer is authorized to use Seller’s
                                            funds to pay for same; and (v) Buyer shall have the right, without waiving any of its rights
                                            and remedies and without notice to Seller or any Owner/Guarantor, to notify any credit card
                                            processor of the sale of Future Receipts and redirect the remittance of daily settlements
                                            to an account of Buyer’s choosing in order to settle all obligations due to Buyer under
                                            this Agreement.

 

    	 	 	_______________	 	______________
	CFG Merchant Solutions, LLC	Page | 2	Seller’s Initials	 	Seller’s Initials

     

    

 

	4.	Seller’s
                                            Representations, Warranties and Covenants. Seller represents, warrants and covenants
                                            the following as of this date, and at all times during the course of this Agreement:

 

		a.	Seller
                                            is a business that regularly accepts payments by credit cards as a means by which its customers
                                            pay Seller for amounts due whether for goods sold, services rendered or in satisfaction of
                                            other amounts owed.

 

		b.	Seller
                                            shall not take any action to discourage the use of credit and/or debit cards which are settled
                                            though Processor or to permit any event to occur which could have an adverse effect on the
                                            use, acceptance or authorization of credit and or debit cards for the purchase of Seller’s
                                            services and products.

 

		c.	Seller
                                            shall conduct its business consistent with past practice and shall use the Purchase Price,
                                            whether the funding of such Purchase Price occurs contemporaneous with the execution of this
                                            Agreement or anytime time thereafter, solely for business purposes and none will be used
                                            for personal, household or consumer purposes.

 

		d.	Any
                                            and all credit card processing terminals and/or point of sale systems shall be approved by
                                            Buyer and programmed to process only through a Buyer-approved Processor.

 

		e.	Seller
                                            shall not change the Approved Account or credit card processor through which the major credit
                                            cards are settled from Processor to another credit card processor, cease or change its payment
                                            instruction or other arrangements with Processor or to permit any event to occur that could
                                            cause a diversion of any of Seller’s credit and/or debit card transactions to another
                                            processor without Buyer’s prior written consent. In the event that Seller changes its
                                            Buyer-approved Processor without Buyer’s written consent, Seller shall, in addition
                                            to paying any other damages suffered by Buyer, pay to Buyer the Blocked Account Fee set forth
                                            in the Fee Structure Addendum as liquidated damages, as it will be impracticable or extremely
                                            difficult to determine the resulting damages suffered by Buyer.

 

		f.	Within
                                            two (2) business days of its receipt of the notice described in Section 2a. of this Agreement
                                            hereinabove, Seller shall at its sole expense, terminate its relationship with Processor
                                            and exclusively engage the services of an alternative credit card processor that Buyer approves
                                            in writing and enter into any Seller credit card processing agreement as the alternative
                                            credit card processor may require.

 

		g.	Each
                                            fact in any financial record, statement, books and records or other documents Seller has
                                            shown to Buyer, either before or after the execution of this Agreement, was true and accurate
                                            and no information has since come to Seller’s attention to materially affect same.

 

		h.	Seller
                                            has not entered into any other agreement for the sale of Future Receipts and/or cash advance
                                            agreement except as disclosed to Buyer in writing, shall not enter into any other future
                                            receipts and/or cash advance agreement, and has not accepted and shall not accept any other
                                            cash advance absent Buyer’s advance written consent.

 

		i.	Seller
                                            has not entered into any financing or factoring agreement, except as disclosed to Buyer in
                                            writing, and Seller shall not enter into any financing or factoring agreement absent Buyers
                                            advance written consent.

 

		j.	Seller
                                            has not granted a security interest in any of its Future Receipts to any third party except
                                            as disclosed to Buyer in writing, and Seller shall not grant a security interest in any of
                                            its Future Receipts absent Buyer’s advance written consent.

 

		k.	Seller
                                            shall not sell, dispose, convey or otherwise transfer its business or assets without the
                                            express prior written consent of Buyer and the assumption of all of Seller’s obligations
                                            under this Agreement by the purchaser or transferee of the business or assets pursuant to
                                            documentation reasonably satisfactory to Buyer.

 

		l.	Seller
                                            shall furnish Buyer with the bank statements for its Bank Account and any and all other accounts
                                            to which proceeds from Seller’s sales are deposited within seven (7) days of any such
                                            request by Buyer.

 

		m.	Seller
                                            shall unconditionally ensure that the cash Seller receives from Processor attributable to
                                            the Daily Amount based on the collections of the Future Receipts is immediately thereafter
                                            available to Buyer for collection via ACH, Split Funds, Lock Box or any other means deemed
                                            appropriate from Seller’s Bank Account. In the event that Seller’s Bank Account
                                            does not have adequate funds available to cover the Daily Amount to be delivered to Buyer,
                                            Seller must provide timely advance notice to Buyer. If any attempted ACH debit is rejected
                                            because the account is considered to have Non-Sufficient Funds (hereafter “NSF”)
                                            then Buyer will assess the NSF Fee set forth in the Fee Structure Addendum per each occurrence,
                                            to be automatically debited from Seller’s Bank Account.

 

    	 	 	_______________	 	______________
	CFG Merchant Solutions, LLC	Page | 3	Seller’s Initials	 	Seller’s Initials

     

    

 

		n.	Seller
                                            shall not attempt to revoke its ACH authorization to Buyer set forth in this Agreement or
                                            otherwise take any measure to interfere with Buyer’s ability to collect the cash Seller
                                            receives or is otherwise entitled to receive from Processor attributable to the Daily Amount.

 

		o.	The
                                            Bank Account is established and used for business purposes only and not for personal, family,
                                            or household purposes.

 

		p.	Seller
                                            shall use the Purchase Price paid by Buyer for Future Receivables solely for business purposes
                                            in the ordinary course of Seller’s business and will not use any of the Purchase Price
                                            paid by Buyer for personal, household or consumer purposes.

 

		q.	Seller
                                            shall not close the Approved Account or change the bank account into which Processor deposits
                                            the Future Receipts to another account without Buyer’s prior written consent. In the
                                            event that Seller changes its Bank Account without Buyer’s prior written consent, Seller
                                            shall, in addition to paying any other damages suffered by Buyer, pay to Buyer the Blocked
                                            Account Fee as liquidated damages, as it will be impracticable or extremely difficult to
                                            determine the resulting damages suffered by Buyer.

 

		r.	There
                                            are no pending lawsuits and/or claims against Seller.

 

		s.	Seller
                                            shall not conduct its businesses under any name other than as disclosed to Buyer, or change
                                            any of its places of business, or change the type of business it conducts without Buyer’s
                                            prior written consent; and Seller represents that the information it furnished Buyer in this
                                            Agreement and preceding application, including, without limitation, Seller’s processing
                                            statements, is true and accurate in all respects and fairly represents the financial condition,
                                            result of operations and cash flows of Seller at such dates, and since the dates therein,
                                            there has been no material adverse change in the business or its prospects or in the financial
                                            condition, results of operations, or cash flows of Seller.

 

		t.	Seller
                                            is not presently intending to file bankruptcy in the foreseeable future.

 

		u.	The
                                            person who signed this Agreement on behalf of Seller was authorized by Seller to sign this
                                            Agreement on behalf of Seller. Seller understands that: (i) the foregoing representations,
                                            warranties and covenants of Seller are a fundamental condition to induce Buyer to enter into
                                            this Agreement; (ii) Buyer is relying on these representations, warranties and covenants
                                            of Seller in entering into this Agreement; and (iii) Buyer would not make any payment of
                                            any Purchase Price to Seller hereunder if any of the foregoing representations, warranties
                                            and covenants were not accurate, including, without limitation, that the proceeds are or
                                            were to be used for anything other than for business purposes of the Seller in the ordinary
                                            course of Seller’s business.

 

		v.	Seller
                                            shall not take any action to block Buyer’s viewing access to the Bank Account. Seller
                                            must provide updated login information for the Bank Account within 24 hours of the change.

 

	5.	No
                                            Agency Relationship Created. Unless otherwise disclosed, Buyer is an entirely separate
                                            and independent entity from the Processor and the irrespective agents. Buyer does not have
                                            any power or authority or control over Processor’s actions with respect to the processing
                                            of Seller’s credit card transactions. Neither Processor or Buyer are the agent for
                                            the other, neither is authorized to waive or alter any term or condition of this Agreement
                                            and their representations shall in no way affect Seller’s or Buyer’s rights and
                                            obligations set forth herein.

 

	6.	Exclusive
                                            Use of Approved Processor. Seller understands that services of Processor are the exclusive
                                            means by which Seller may process its credit card transactions. The Processor must enter
                                            into an agreement with Buyer detailing Buyer’s priority rights to the Future Receipts.
                                            If applicable, Buyer hereby approves to act as Processor for Buyer’s benefit.

 

	7.	Nonrecourse
                                            Sale of Future Receipts; No Right to Repurchase; and Non-Consumer Transaction. Seller
                                            and Buyer agree that the Purchase Price paid by Buyer in exchange for the dollar figure listed
                                            as the Amount Sold of Future Receipts as set forth in the Schedule of Purchased Receipts
                                            is for the purchase and sale of the Amount Sold of Future Receipts, is a true sale of receipts
                                            and is not intended to be, nor shall it be construed as, a loan or an assignment for security
                                            from Buyer to the Seller. If the Amount Sold is never remitted because Seller’s business
                                            went bankrupt or otherwise ceased operations in the ordinary course of business, and Seller
                                            has not breached this Agreement, Seller would not owe anything to Buyer and would not be
                                            in breach of or default under this Agreement. Seller acknowledges that it has no right to
                                            repurchase the Amount Sold of Future Receipts from Buyer. Seller and Buyer hereby acknowledge
                                            and agree that none of the parties to or guarantor of this Agreement is a “consumer”
                                            with respect to this Agreement and underlying transaction, and neither this Agreement nor
                                            any guarantee thereof shall be construed as a consumer transaction.

 

	8.	Seller
                                            May Request Changes to the Daily Amount (IMPORTANT PROTECTION FOR SELLER): The initial
                                            Daily Amount is intended to represent the specified Purchased Percentage of Seller’s
                                            daily Future Receipts. For as long as no Event of Default has occurred, once each calendar
                                            month, Seller may request that Buyer adjust the Daily Amount to more closely reflect the
                                            Seller’s actual Future Receipts times the specified Purchased Percentage. Seller agrees
                                            to provide Buyer any information requested by Buyer to assist in this reconciliation. Upon
                                            reasonable verification of such information, Buyer shall adjust the Daily Amount on a going-forward
                                            basis to more closely reflect the Seller’s actual Future Receipts times the specified
                                            Purchased Percentage. Buyer will give Seller notice five business days prior to any such
                                            adjustment. After each adjustment made pursuant to this paragraph, the new dollar amount
                                            shall be deemed the Daily Amount until any subsequent adjustment.

 

    	 	 	_______________	 	______________
	CFG Merchant Solutions, LLC	Page | 4	Seller’s Initials	 	Seller’s Initials

     

    

 

	9.	Buyer
                                            May Request Changes to the Daily Amount. Any time after 90 days following an adjustment
                                            requested by the Seller, Buyer may require Seller to provide information to evaluate whether
                                            the Daily Amount should again be adjusted to more closely reflect the Seller’s actual
                                            Future Receipts times the Specified Percentage. Failure to provide such information within
                                            five (5) business days will give Buyer the right to adjust the new dollar amount to the initial
                                            Daily Amount. Seller must provide requested information, including bank statements, to Buyer
                                            in any format Buyer reasonably requests.

 

	10.	Right
                                            of First Refusal. Seller grants Buyer the option of first refusal to purchase any pool
                                            of additional Future Receipts that Seller may wish to sell for a period of two (2) years
                                            from the date of this Agreement, however, nothing herein shall obligate either party to sell
                                            or purchase additional pools of Future Receipts.

 

	11.	Updated
                                            Credit Reports. Seller and each of the Owners signing below authorize Buyer, its agents
                                            and representatives and any credit reporting agency engaged by Buyer, to (i) investigate
                                            any references given or any other statements or data obtained from or about Seller or any
                                            of its Owners for the purpose of this Agreement, (ii) obtain consumer and business credit
                                            reports on the Seller and any of its Owners, and (iii) to contact personal and business references
                                            provided by the Seller in the Application, at any time now or for so long as Seller and/or
                                            Owners continue to have any obligation owed to Buyer as a consequence of this Agreement or
                                            for Buyer’s ability to determine Seller’s eligibility to enter into any future
                                            agreement with Buyer.

 

	12.	Electronic
                                            Transactions Authorization. The parties agree that all business between one another shall
                                            be conducted by electronic means and adopt the provisions of the New York Electronic Signatures
                                            and Records Act (“ESRA”) as set forth in N.Y. STT. Law. Section 301 through §309
                                            inclusive. Each document that is subject to or provided in furtherance of this Agreement,
                                            all documents provided in furtherance thereof, as amended, modified or supplemented from
                                            time to time that a party has sent to the other by electronic means or the Seller has clicked
                                            to approve to adopt this Agreement shall be intended as and constitute an original and deemed
                                            to contain a valid signature for all purposes acknowledging and consenting to the terms of
                                            the agreement applicable thereto. In furtherance of the above, Seller hereby authorizes Buyer
                                            to regard the Seller’s printed name or electronic approval for any document, agreement,
                                            assignment schedules or invoices as the equivalent of a manual signature by one of Seller’s
                                            authorized officers or agents. Buyer may rely upon, and assume the authenticity of, any such
                                            electronic approval, and any material applicable to such approval as the duly confirmed,
                                            authorized and approved signature of the Seller by the person approving same, shall constitute
                                            an “authenticated” record for all purposes (including, without limitation, the
                                            UCC) and shall satisfy the requirements of any applicable statute of frauds. Seller is not
                                            required to agree to conduct business pursuant to ESRA and the purchase of Future Receipts
                                            in furtherance of this Agreement is not conditioned upon Seller agreeing to conduct business
                                            in accordance with the ESRA. Seller has the option to request paper copies of any electronic
                                            records upon written request to Buyer. Seller may terminate this Electronic Transactions
                                            Authorization by providing Buyer with not less than ten (10) days written notice in conformity
                                            with this Agreement.

 

	13.	Default.
                                            A “Default” under this Agreement shall include, but not be limited to, any
                                            of the following events: (a) Seller intentionally interferes with Buyer’s right to
                                            collect the Specified Percentage or Daily Amount; (b) the breach by Seller of any covenants,
                                            terms or conditions contained in this Agreement; (c) any representation or warranty made
                                            by the Seller in this Agreement or Seller’s application for this Agreement is incorrect,
                                            false or misleading; and (d) Seller fails to provide timely notice to Buyer such that, in
                                            any given calendar month, four or more attempts by Buyer to debit the Bank Account are rejected.

 

	14.	Remedies.
                                            In the event of a Default, Buyer shall be entitled to all remedies available at law and
                                            equity. The Specified Percentage shall equal 100%. In addition to all other remedies, Buyer
                                            is entitled under the Agreement and by operation of law or equity, in the event of Seller’s
                                            Default, the full uncollected Amount Sold plus all fees and charges (including legal fees)
                                            due under this Agreement will become due and payable in full immediately and Buyer may: (a)
                                            enforce the provisions of the personal guaranty of performance; (b) proceed to protect and
                                            enforce its rights and remedies by arbitration or lawsuit; or (c) automatically debit Seller’s
                                            Bank Account all money due to Buyer without notice to Seller. Neither failure on the part
                                            of Buyer to exercise, nor any delay in exercising any right under this Agreement shall operate
                                            as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement
                                            preclude any other or further exercise of any other right. The remedies provided hereunder
                                            are cumulative and not exclusive of any remedies provided by law or equity and shall survive
                                            termination of this Agreement.

 

	15.	Default
                                            Fee. Upon the occurrence of any payment Default hereunder, Buyer shall be entitled to
                                            charge and Seller shall pay the Default Fee set forth on the Fee Structure Addendum as liquidated
                                            damages to cover the increased costs associated with administering the Default.

 

	16.	Acknowledgment
                                            of Security Interest and Security Agreement. The sale of Future Receipts by Seller to
                                            Buyer pursuant to this Agreement are “accounts”, “general intangibles”,
                                            or “payment intangibles” as those terms are defined in the UCC and such sale
                                            shall constitute and shall be construed and treated for all purposes as a true and complete
                                            sale, conveying good title to the Future Receipts free and clear of any liens and encumbrances,
                                            from Seller to Buyer. To the extent the Future Receipts are “accounts” or “payment
                                            intangibles” then (i) the sale of the Future Receipts creates a security interest as
                                            defined in the UCC, (ii) this Agreement constitutes a “security agreement” under
                                            the UCC, and (iii) Buyer has all the rights of a secured party under the UCC with respect
                                            to such Future Receipts. Seller further agrees that, with or without an event of Default,
                                            Buyer may notify account debtors, or other persons obligated on the Future Receipts, of Seller’s
                                            sale of the Future Receipts and may instruct them to make payment or otherwise render performance
                                            to or for the benefit of Buyer.

 

	17.	UCC-1 Financing
  Statements. Seller authorizes Buyer to file one or more UCC-1 forms consistent with the UCC
  in order to give notice that the Amount Sold is the sole property of Buyer. The UCC filing may state that such sale is intended to
  be a sale and not an assignment for security and may state that the Seller is prohibited from obtaining any financing that impairs
  the value of the Future Receipts or Buyer’s right to collect same. Seller authorizes Buyer to debit the Account for all costs
  incurred by Buyer associated with the filing, amendment or termination of any UCC filings.

 

    	 	 	_______________	 	______________
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	18.	Sharing
                                            of Information. Seller hereby authorizes Buyer to share information regarding Seller’s
                                            performance under this Agreement with affiliates and unaffiliated third parties.

 

	19.	Indemnification.
                                            Seller will indemnify and hold harmless Buyer and its officers, directors, principals,
                                            partners, members, employees, agents, representatives and affiliates (each being an “Indemnified
                                            Party”) from and against any and all losses, claims, actions, damages and liabilities,
                                            joint or several, to which such Indemnified Party may become subject under any applicable
                                            federal or state law, made by any third party or otherwise (including, without limitation,
                                            any customer or client of Seller), relating to or in connection with this Agreement, the
                                            collection of any Future Receipts, the rejection or revocation of merchandise or disputes
                                            with respect to any services of every kind and nature by any customer or client of Seller
                                            and the performance by such Indemnified Party under this Agreement, and Seller will reimburse
                                            any Indemnified Party for all costs and expenses (including, without limitation, reasonable
                                            attorneys’ fees and expenses) as they are incurred in connection with the investigation
                                            of, preparation for or defense of any pending or threatening claim, or any action or proceeding
                                            arising therefrom, whether or not such Indemnified Party is a party thereto. Seller further
                                            indemnifies and holds harmless the Processor(s), and their member banks, and the Buyer, and
                                            their respective officers managers, owners, affiliates, employees, agents and representatives
                                            (the “Indemnitees”) from and against any and all losses, damages, claims, liabilities
                                            and expenses, including, but not limited to, attorney’s fees incurred by any of the
                                            Indemnitees arising from: (i) actions taken in reliance upon information or instructions
                                            provided to the Buyer and/or the Processor(s) and their member banks by or on behalf of Seller;
                                            or (ii) the occurrence of termination of this Agreement. In no case will the Indemnitees
                                            be liable for any claims asserted against them based on any theory of law or equity for lost
                                            profits, revenues, or business opportunities; exemplary, special or consequential damages,
                                            each of which is hereby expressly waived by Seller. However, in the event that any Indemnitee
                                            shall be found liable, damages shall not, under any circumstances, exceed the Amount Sold
                                            pertaining to the Schedule(s) of Purchased Receipts for which the underlying claim(s) arise(s).
                                            The provisions of this paragraph shall survive the termination of this Agreement.

 

	20.	Governmental
                                            Approvals. Seller possesses and is in compliance with all permits, licenses, approvals,
                                            consents and other authorizations necessary to conduct its business. Seller is in compliance
                                            with any and all applicable federal, state, and local laws and regulations. Seller possesses
                                            all requisite permits, authorizations and licenses to own, operate and lease its properties
                                            and to conduct the business in which it is presently engaged.

 

	21.	Notices.

 

		a.	Notices
                                            from Buyer to Seller. Buyer may send any notices, disclosures, terms and conditions,
                                            other documents, and any future changes to Seller by regular mail or by e-mail, at Buyer’s
                                            option and Seller consents to such electronic delivery. Notices sent by e-mail are effective
                                            when sent. Notices sent by regular mail become effective three days after mailing to Seller’s
                                            address set forth in this Agreement.

 

		b.	Notices
                                            from Seller to Buyer. Seller may send any notices to Buyer by e-mail only upon the prior
                                            written consent of Buyer, which consent may be withheld or revoked at any time in Buyer’s
                                            sole discretion. Otherwise, any notices or other communications from Seller to Buyer must
                                            be delivered by certified mail, return receipt requested, to Buyer’s address at CFG
                                            Merchant Solutions, LLC, 201 Route 17 North, Suite 805, Rutherford, New Jersey 07070. Notices
                                            sent to Buyer shall become effective only upon receipt by Buyer.

 

	22.	Binding
                                            Effect; Assignment. This Agreement shall be binding upon and inure to the benefit of
                                            Seller, Buyer and their respective successors and assigns, except that Seller shall not have
                                            the right to assign its rights or interests hereunder without the prior written consent of
                                            Buyer, which consent may be withheld at Buyer’s sole discretion. Buyer may assign this
                                            Agreement without notice to Seller.

 

	23.	Buyer’s
                                            Costs of Enforcement, Attorney’s Fees. Buyer shall be entitled to receive or recover
                                            from Seller and Seller shall pay to Buyer all of Buyer’s costs and expenses, including
                                            Buyer’s collections costs and Buyer’s reasonable attorney’s fees, in enforcing
                                            any of the terms of this Agreement, administering the transaction and, regardless of whether
                                            or not a legal action has been commenced, including, without limitation, relating to any
                                            out of court workout, receivership, assignment for benefit of creditors or bankruptcy involving
                                            the Seller or any guarantor. This provision shall survive termination of this Agreement.

 

	24.	Cancellation.
                                            The obligation of Buyer under this Agreement will not be effective unless and until Buyer
                                            has completed its review of the Seller and has accepted this Agreement by delivering the
                                            Purchase Price, minus any fees listed on the Schedule of Purchased Receipts. Prior to accepting
                                            this Agreement, Buyer may conduct a processing trial to confirm its access to the business
                                            bank account designated in the ACH authorization agreement signed on the date of this Agreement
                                            and as it may be amended or replaced from time to time and the ability to withdraw the Daily
                                            Amount. If the processing trial is not completed to the satisfaction of Buyer, Buyer will
                                            refund to Seller all funds that were obtained by Buyer during the processing trial. If the
                                            Seller cancels this Agreement prior to the initial funding, Seller will be charged the Cancellation
                                            Fee set forth on the Fee Structure Addendum and the Cancellation Fee will be debited via
                                            ACH from the Seller’s Bank Account. Seller will also be charged the Cancellation Fee
                                            if Buyer cancels the Agreement due to Seller’s fraud.

 

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	25.	Modifications
                                            Amendments; Entire and Final Agreement. This Agreement, together with Exhibit A and the
                                            documents provided in contemplation hereof (including, without limitation, Guarantees given
                                            in support hereof), contains the entire and final agreement and understanding between the
                                            parties to this Agreement and the documents given in contemplation hereof, and supersedes
                                            and replaces all prior negotiations and proposed agreements, written or oral. Each of the
                                            parties hereto acknowledges that no other party or any agent of any other party has made
                                            any promise, representation or warranty whatsoever, express or implied, written or oral,
                                            not contained in this Agreement and the documents given in contemplation hereof to induce
                                            any person to execute this Agreement and the documents given in contemplation hereof, and
                                            each of the parties acknowledges that he, she or it has not executed this Agreement and the
                                            documents given in contemplation hereof in reliance on any promise, representation or warranty
                                            not contained in this Agreement and the documents given in contemplation hereof. This Agreement
                                            and the documents given in contemplation hereof may not be waived, altered, modified, revoked
                                            or rescinded except by a writing signed by one of Buyer’s executive officers. No attempt
                                            at oral modification or rescission of this Agreement and the documents given in contemplation
                                            hereof or any term of any of the foregoing will be binding upon the parties.

 

	26.	Severability.
                                            In case any one or more of the provisions contained in this Agreement or the documents
                                            given in contemplation hereof is held to be invalid, illegal or unenforceable in any respect,
                                            the validity, legality and enforceability of the remaining provisions contained herein and
                                            therein shall not in any way be affected or impaired thereby.

 

	27.	Governing
                                            Law; Venue; Service of Process. This Agreement and all acts and transactions hereunder
                                            and thereunder and all rights and obligations of Buyer and Seller shall be governed, construed
                                            and interpreted in accordance with the internal laws of the State of New York. Seller: (i)
                                            agrees that all actions or proceedings relating directly or indirectly hereto shall, at the
                                            option of Buyer, be litigated in courts located within said state, and, that, at the option
                                            of Buyer, the exclusive venue therefore shall be New York County, State of New York; (ii)
                                            consents to the jurisdiction and venue of any such court and consents to service of process
                                            in any such action or proceeding by personal delivery or any other method permitted by law;
                                            and (iii) waives any and all rights Seller may have to object to the jurisdiction of any
                                            such court, or to transfer or change the venue of any such action or proceeding.

 

	28.	Headings
                                            Solely For Convenience. Headings to sections of this Agreement are solely for convenience,
                                            are not to be deemed part of the Agreement, and are not to be used to interpret or construe
                                            any provision of the Agreement.

 

	29.	Counterparts;
                                            Facsimile; Scans. This Agreement may be executed in identical counterparts and shall
                                            constitute a binding contract between Buyer and Seller when Buyer and Seller exchange executed
                                            counterparts and said exchange may be made by facsimile or scan of same sent via email.

 

	30.	Monitoring,
                                            Recording, and Solicitations.

 

		a.	Authorization
                                            to Contact Seller by Phone. Seller authorizes Buyer, its affiliates, agents and independent
                                            contractors to contact Seller at any telephone number Seller provides to Buyer or from which
                                            Seller places a call to Buyer, or any telephone number where Buyer believes it may reach
                                            Seller, using any means of communication, including but not limited to calls or text messages
                                            to mobile, cellular, wireless or similar devices or calls or text messages using an automated
                                            telephone dialing system and/or artificial voices or prerecorded messages, even if Seller
                                            incurs charges for receiving such communications.

 

		b.	Authorization
                                            to Contact Seller by Other Means. Seller also agrees that Buyer, its affiliates, agents
                                            and independent contractors, may use any other medium not prohibited by law including, but
                                            not limited to, mail, e-mail and facsimile, to contact Seller. Seller expressly consents
                                            to conduct business by electronic means.

 

	31.	JURY
                                            WAIVER: THE PARTIES WAIVE THE RIGHT TO A TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION
                                            OR PROCEEDING ON ANY MATTER ARISING IN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS
                                            OF WHICH THIS AGREEMENT IS A PART OR ITS ENFORCEMENT, EXCEPT WHERE SUCH WAIVER IS PROHIBITED
                                            BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST PUBLIC POLICY. THE PARTIES ACKNOWLEDGE THAT
                                            EACH MAKES THIS WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUT DURESS, AND ONLY
                                            AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OF THIS WAIVER WITH THEIR ATTORNEYS.

 

	32.	CLASS
                                            ACTION WAIVER: BUYER, SELLER, AND EACH GUARANTOR ACKNOWLEDGE AND AGREE THAT THE AMOUNT
                                            AT ISSUE IN THIS TRANSACTION AND ANY DISPUTES THAT ARISE BETWEEN THEM ARE LARGE ENOUGH TO
                                            JUSTIFY DISPUTE RESOLUTION ON AN INDIVIDUAL BASIS. EACH PARTY HERETO WAIVES ANY RIGHT TO
                                            ASSERT ANY CLAIMS AGAINST THE OTHER PARTY AS A REPRESENTATIVE OR MEMBER IN ANY CLASS OR REPRESENTATIVE
                                            ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW OR DEEMED BY A COURT OF LAW TO BE AGAINST
                                            PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITTED BY LAW OR COURT OF LAW TO PROCEED
                                            WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE PARTIES AGREE THAT: (I) THE
                                            PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS’ FEES OR COSTS ASSOCIATED
                                            WITH PURSUING THE CLASS OR REPRESENTATIVE ACTION (NOT WITHSTANDING ANY OTHER PROVISION IN
                                            THIS AGREEMENT); AND (II) THE PARTY WHO INITIATES OR PARTICIPATES AS A MEMBER OF THE CLASS
                                            WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATE IN ANY RECOVERY SECURED THROUGH THE CLASS
                                            OR REPRESENTATIVE ACTION.

.

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	33.	ARBITRATION:
                                            IF BUYER, SELLER OR ANY GUARANTOR REQUESTS, THE OTHER PARTIES AGREE TO ARBITRATE ALL
                                            DISPUTES AND CLAIMS ARISING OUT OF OR RELATING TO THIS AGREEMENT. IF BUYER, SELLER OR ANY
                                            GUARANTOR SEEKS TO HAVE A DISPUTE SETTLED BY ARBITRATION, THAT PARTY MUST FIRST SEND TO THE
                                            OTHER PARTY, BY CERTIFIED MAIL, A WRITTEN NOTICE OF INTENT TO ARBITRATE. IF BUYER, SELLER
                                            OR ANY GUARANTOR DO NOT REACH AN AGREEMENT TO RESOLVE THE CLAIM WITHIN 30 DAYS AFTER THE
                                            NOTICE IS RECEIVED, BUYER, SELLER OR ANY GUARANTOR MAY COMMENCE AN ARBITRATION PROCEEDING
                                            WITH THE AMERICAN ARBITRATION ASSOCIATION (“AAA”) OR NATIONAL ARBITRATION FORUM
                                            (“NAF”). BUYER WILL PROMPTLY REIMBURSE SELLER OR THE GUARANTOR ANY ARBITRATION
                                            FILING FEE, HOWEVER, IN THE EVENT THAT BOTH SELLER AND THE GUARANTOR MUST PAY FILING FEES,
                                            BUYER WILL ONLY REIMBURSE SELLER’S ARBITRATION FILING FEE AND, EXCEPT AS PROVIDED IN
                                            THE NEXT SENTENCE, BUYER WILL PAY ALL ADMINISTRATION AND ARBITRATOR FEES. IF THE ARBITRATOR
                                            FINDS THAT EITHER THE SUBSTANCE OF THE CLAIM RAISED BY SELLER OR THE GUARANTOR OR THE RELIEF
                                            SOUGHT BY SELLER OR THE GUARANTOR IS IMPROPER OR NOT WARRANTED, AS MEASURED BY THE STANDARDS
                                            SET FORTH IN FEDERAL RULE OF PROCEDURE 11(B), THEN BUYER WILL PAY THESE FEES ONLY IF REQUIRED
                                            BY THE AAA OR NAF RULES. SELLER AND THE GUARANTOR AGREE THAT, BY ENTERING INTO THIS AGREEMENT,
                                            THEY ARE WAIVING THE RIGHT TO TRIAL BY JURY. BUYER, SELLER OR ANY GUARANTOR MAY BRING CLAIMS
                                            AGAINST ANY OTHER PARTY ONLY IN THEIR INDIVIDUAL CAPACITY, AND NOT AS A PLAINTIFF OR CLASS
                                            MEMBER IN ANY PURPORTED CLASS OR REPRESENTATIVE PROCEEDING. FURTHER, BUYER, SELLER AND ANY
                                            GUARANTOR AGREE THAT THE ARBITRATOR MAY NOT CONSOLIDATE PROCEEDINGS FOR MORE THAN ONE PERSON’S
                                            CLAIMS, AND MAY NOT OTHERWISE PRESIDE OVER ANY FORM OF A REPRESENTATIVE OR CLASS PROCEEDING,
                                            AND THAT IF THIS SPECIFIC PROVISION IS FOUND UNENFORCEABLE, THEN THE ENTIRETY OF THIS ARBITRATION
                                            CLAUSE SHALL BE NULL AND VOID.

 

	34.	RIGHT
                                            TO OPT OUT OF ARBITRATION: SELLER AND GUARANTOR(S) MAY OPT OUT OF THIS CLAUSE. TO OPT
                                            OUT OF THIS ARBITRATION CLAUSE, SELLER AND EACH GUARANTOR MUST SEND BUYER A NOTICE THAT THE
                                            SELLER AND EACH GUARANTOR DOES NOT WANT THIS CLAUSE TO APPLY TO THIS AGREEMENT. FOR ANY OPT
                                            OUT TO BE EFFECTIVE, SELLER AND EACH GUARANTOR MUST SEND AN OPT OUT NOTICE TO THE FOLLOWING
                                            ADDRESS BY REGISTERED MAIL, WITHIN 14 DAYS AFTER THE DATE OF THIS AGREEMENT: CFG MERCHANT
                                            SOLUTIONS, LLC, HEAD OF OPERATIONS, ARBITRATION OPT OUT, 201 ROUTE 17 NORTH, SUITE 805, RUTHERFORD,
                                            NEW JERSEY 07070.

 

The
entity or individual signing for Seller below agrees that he/she/ has read, understood and agrees to abide by the terms of this Agreement
including those terms contained in the Fee Structure Addendum attached hereto and incorporated by reference as Exhibit A.

 

	Dated:_____/_____/_____	 	Signature:_____________________	 	Mailing
    address:_______________________
	 	 	Print
    Name:_______________	 	City:__________State:________ Zip:______
	 	 	Print
    Title:_____________	 	Phone:____________

 

	Dated:_____/_____/_____	 	Signature:_____________________
    	 	Mailing
    address:_______________________
	 	 	Print
    Name:_______________	 	City:__________State:________ Zip:______
	 	 	Print
    Title:_____________	 	Phone:____________

 

	Agreement
    of Each Owner:	 	 	 	 
	 	 	 	 	 
	 	 	(Signature):______________	 	(Signature):
    ________________
	 	 	(Signature):______________	 	(Signature):
________________

 

	 	 	CFG
    MERCHANT SOLUTIONS, LLC. 	 	CFG
    Merchant Solutions, LLC
	 	 	 	 	180
    Maiden Lane, Floor 15
	Dated:_____/_____/_____	 	By:
______________________    	 	New
    York, NY 10038
	 	 	Print
    Name:_______________	 	 
	 	 	Print
    Title:________________	 	 

 

    	 	 	_______________	 	______________
	CFG Merchant Solutions, LLC	Page | 8	Seller’s Initials	 	Seller’s Initials

     

    

 

 

EXHIBIT
A

 

FEE
STRUCTURE ADDENDUM

 

This
Fee Structure Addendum is made part of and incorporated by reference into that certain Purchase Agreement dated 2/28/2022 between
CFG Merchant Solutions, LLC as Buyer and MCA NAPLES, LLC as Seller (the “Agreement”). Capitalized terms used but not
defined herein shall have the meanings ascribed to such terms in the Agreement.

 

In
addition to all of the fees and charges set forth in the Agreement, Seller agrees to pay Buyer on demand the fees and charges set forth
in this Fee Structure Addendum. Buyer is authorized by Seller to initiate electronic or debit entries through the Automated Clearing
House (“ACH”) or other wire transfer service as applicable from the designated Bank Account set forth in the Agreement to
assess any of the fees and charges listed herein or referenced in the Agreement.

 

Cancellation
Fee - $250.00. To cover Buyer’s administrative expenses in the event that Seller elects to cancels the Agreement prior to the
initial funding date.

 

NSF
Fee - $35.00 per occurrence.

 

Rejected
ACH fee - $100.00 per occurrence in the event that a merchant directs the designated Bank Account to reject Buyer’s debit

 

ACH.
Bank Change Fee - $50.00. Assessed in the event Seller elects to change the designated Bank Account.

 

Blocked
Account Fee - $2,500.00 per occurrence.

 

Default
Fee - The greater of an amount equal to five percent (5%) of the Amount Sold outstanding in the aggregate attributable to the Schedule
of Purchased Receipts or $2,500.

 

UCC
Filing Fee - $195.00 to cover the cost of filing UCC-1 Financing Statement in connection with the Agreement. Seller agrees that he/she/
has read, understood and agrees to abide by the terms contained in this Fee Structure Addendum.

 

	SELLER(S)	 	 	 
	 	 	 	 	 
	[name
    of Seller]	 	 	 
	 	 	 	 	 
	Signature:	 	 	Signature:	 
	Print
    Name: 	 	 	Print
    Name:	 
	Print
    Title:	 	 	Print
    Title:	 

 

	Agreement
    of Each Owner:	 	 	 	 	 	 	 
	 	 	(Signature):	 	 	(Signature):	 	 
	 	 	(Signature):	 	 	(Signature):	 	 

 

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AUTHORIZATION
AGREEMENT

FOR
AUTOMATED CLEARING HOUSE TRANSACTIONS

 

MCA
NAPLES Operating Company, LLC (“Seller”) hereby authorizes CFG Merchant Solutions, LLC (“Buyer”) to present
automated clearing house (ACH) debits to the following checking account in the amount of fees and other payments due to Buyer from Seller
under the terms of that Agreement for the Purchase Agreement (the “Agreement”) entered into between Seller and Buyer, as
it may be amended, supplemented or replaced from time to time. Seller also authorizes Buyer to initiate additional entries (debits and
credits) to correct any erroneous transfers. In addition, if an Event of Default (as defined in the Agreement) occurs, Seller authorizes
Buyer to debit any and all accounts controlled by Seller or controlled by any entity with the same Federal Tax Identification Number
as Seller up to the total amount, including but not limited to, all fees and charges, due to Buyer from Seller under the terms of the
Agreement.

 

Seller
agrees to be bound by the Rules and Operating Guidelines of NACHA and represents and warrants that the designated account is established
and used primarily for commercial/business purposes, and not for consumer, family or household purposes. Seller authorizes Buyer to contact
Seller’s financial institution to obtain available funds information and/or to verify any information Seller has provided about
the designated checking account and to correct any missing, erroneous or out-of-date information. Seller understands and agrees that
any revocation or attempted revocation of this Authorization will constitute an event of default under the Agreement. In the event that
Seller closes the designated checking account, or the designated checking account has insufficient funds for any ACH transaction under
this Authorization, Seller authorizes Buyer to contact Seller’s financial institution and obtain information (including account
number, routing number and available balance) concerning any other deposit account(s) maintained by Seller with Seller’s financial
institution, and to initiate ACH transactions under this Authorization to such additional account(s). To the extent necessary, Seller
grants Buyer a limited Power of Attorney to take action in Seller’s name to facilitate this authorization.

 

	Transfer
    Funds To/From:	 	Name
    of Bank: 	 	 
	 	 	ABA
    Transit/Routing #:	 	 
	 	 	Checking
    Account #: 	 	 

 

This
authorization is to remain in full force and effect until all amounts due to Buyer under the Agreement have been paid in full, in such
time and in such manner as to afford Buyer a reasonable opportunity to act on it.

 

	Seller
    Information:	 	Seller’s
    Name: MCA NAPLES OPERATING COMPANY, LLC
	 	 	Signature
    of Authorized Representative:__________________________________
	 	 	Print
    Name:________________________________________________________
	 	 	Title:_______________________________________________________
	 	 	Seller’s
    Tax ID:_______________________
	 	 	Date:_________________________________________________

 

[Attached
Voided Check Here]

 

    	 	 	_______________	 	______________
	CFG Merchant Solutions, LLC	Page | 10	Seller’s Initials	 	Seller’s Initials

     

    

 

Additional
Seller Addendum to

Purchase
Agreement

 

Parties

 

	Buyer	 	CFG
    Merchant Solutions, LLC
	 	 	 
	Original
    Seller	 	MCA
    NAPLES, LLC DBA MCA NAPLES
	 	 	 
	Additional
    Seller(s)	 	MEMORY
                                            CARE AMERICA, LLC, EIN: 46-0569955, Address: 8800 Village Dr, Suite 201, San

    Antonio,
    TX 78217

	 	 	 
	 	 	MCA
    MANAGEMENT COMPANY, INC., EIN: 47-1143290, Address: 8800 Village Dr, Suite 201, San Antonio, TX 78217
	 	 	 
	 	 	MCA
    NAPLES OPERATING COMPANY, LLC, EIN: 46-1369706, Address: 4009 Hillsboro Rd, Suite 209, Nashville, TN 37215
	 	 	 
	 	 	MCA
    Naples Holdings, LLC, EIN: 46-1369721, Address: 8800 Village Dr, Suite 201, San Antonio, TX 78217

 

 

 

This
Additional Seller Addendum to Purchase Agreement (“Addendum”) is entered into by and among the above referenced Parties and
amends that certain Purchase Agreement between Buyer and Original Seller dated 2/28/2022 (the “Purchase Agreement”).

 

Each
Additional Seller desires to enter into the Purchase Agreement and to agree to all of the terms of the Purchase Agreement, so that they
will all fully apply to such Additional Seller to the same extent as if the Additional Seller had executed the Purchase Agreement itself.
Therefore, each of the Parties agree as follows:

 

1.
Each Additional Seller is fully bound by all of the terms, conditions, representations, warranties and covenants of the Agreement. The
Purchase Agreement is fully incorporated into this Addendum by reference, and binds and inures to the benefit of each of the Parties
hereto, and all of their heirs, successors and assigns, the same as if such Additional Seller had signed the Purchase Agreement. All
references to “Seller” in the Purchase Agreement mean individually, collectively and interchangeably the Original Seller
and each Additional Seller. Notwithstanding the foregoing, the Parties acknowledge that the initial Daily Amount established in the Purchase
Agreement is based on the average monthly sales of the Original Seller only. By signing this Addendum and adding the Additional Sellers
to the Purchase Agreement, the Parties do not intend to re-calculate the Daily Amount by including the average monthly sales of the Additional
Sellers. The Parties therefore agree that the Daily Amount shall remain the same following the execution of this Addendum, subject to
the Parties’ right request changes to the Daily Amount as set forth in the Purchase Agreement.

 

2.
Each Additional Seller agrees to and enters into the Purchase Agreement as a Seller and hereby joins in the sale of its Future Receipts
and agrees to deliver the Amount Sold to Buyer on the terms and conditions set forth in the Purchase Agreement. The obligation of each
Seller to deliver the entire Amount Sold is joint and several. Any default by a Seller under the Purchase Agreement shall constitute
a default of every Seller under the Purchase Agreement. Each Seller hereby guarantees the prompt performance of the obligations of the
other Sellers under the Purchase Agreement. Buyer may file suit against, or otherwise seek to collect receipt of the Amount Sold from
any Seller without the necessity of Buyer first seeking to collect payment from the any other Seller or other party that may be liable
for the obligations created by the Purchase Agreement.

 

3.
The Original Seller has received the Purchase Price on behalf of itself and the Additional Sellers. The Purchase Price shall be allocated
among the Sellers in such amount as they may agree upon, but each shall have an undivided interest in the entire Purchase Price. Each
Additional Seller is an affiliate that controls, is controlled by, or under common control with, the Original Seller. The Additional
Sellers agree that joining in the sale of the Amount Sold by signing this Addendum is in the mutually beneficial interest of all Sellers.

 

4.
The Parties acknowledge that each Additional Seller may maintain separate bank accounts and each Additional Seller will take such actions
as are necessary or appropriate to enable Buyer to debit such Additional Seller’s Approved Account. Each Seller agrees that Buyer
may debit any or all Approved Accounts in such amounts as Buyer determines in its discretion until Buyer receives the Daily Amount. Buyer
shall not be required to debit each Approved Account in any specific amount or order to obtain the Daily Amount and may, for example,
debit the Approved Account of any single Seller in an amount equal to the entire Daily Amount.

 

    	1

     

    

 

5.
Any notice to an Additional Seller in connection with the Purchase Agreement or this Addendum may be given to such the Original Seller
on behalf of such Additional Seller in the manner set forth in the Purchase Agreement.

 

By
their signatures below the Parties agree to be bound by this Addendum.

 

	Buyer	 	Original
    Seller
	CFG
    Merchant Solutions, LLC (Buyer)	 	MCA
    NAPLES, LLC
	 	 	 	 	 
	By:	 	 	 	 
	Title:
    	 	 	Signature:	 
	 	 	 	By:	 
	 	 	 	Title:	 

 

	 	Additional
    Seller(s)
	 	MEMORY
    CARE AMERICA, LLC
	 	 	 
	 	Signature:	 
	 	By:	           
	 	Title:	 

 

	 	Business
    Address:	8800
    Village Dr, Suite 201 
	 	 	San
    Antonio, TX 78217

 

	 	MCA
    MANAGEMENT COMPANY, INC.
	 	 	 
	 	Signature:	             
	 	By:	 
	 	Title:	 

 

	 	Business
    Address:	 
	 	 	 

 

	 	MCA
    NAPLES OPERATING COMPANY, LLC
	 	 	 
	 	Signature:	 
	 	By:	 
	 	Title:	           

	 	Business
    Address:	 
	 	 	 

 

	 	MCA
    Naples Holdings, LLC
	 	 	 
	 	Signature:	 
	 	By:	 
	 	Title:	 

	 	Business
    Address:	 
	 	 	 

 

    	2

     

    

 

CONSENT
AND REAFFIRMATION OF GUARANTOR

 

Each
undersigned guarantor (“Guarantor”) hereby reaffirms the Personal Guaranty of Performance (“Guaranty”) provided
for the benefit of the Buyer in pursuant to which Guarantor guaranteed to Buyer the prompt and complete performance of all of the Seller’s
obligations under the Purchase Agreement. Each Guarantor consents to the addition of the Additional Sellers as contemplated by this Addendum
and agrees that, as used in the Guaranty, “Seller” means individually, collectively and interchangeably the Original Seller
and each Additional Seller.

 

	Guarantor:	Christin
    Hemmens	(Print
    Name)

 

	Signature:____________________________________________	 
	 	 
	For
    Corporate Guarantors (or other entities) -	 
	Guarantor:____________________________________________	 
	By:__________________________________________________	 
	Print
    Name of Signer:____________________________________	 
	Its:__________________________________(Official
    Position)	 

 

    	3

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