Document:

wttr-ex102_85.htm

 

Exhibit 10.2

[Company Letterhead]                                                                  

May [•], 2020

 

[Full Name]

[Address] 

 

Dear [First Name]:

This letter memorializes the understanding between you and Select Energy Services, LLC, a Delaware limited liability company (the “Company”)[ and Rockwater Energy Solutions Administrative Services, LLC, a Delaware limited liability company, (“Rockwater Services”)]1 regarding your compensation for your employment as [Title] of the Company beginning May [•], 2020 (the “Effective Date”).  As of March 1, 2020 your annualized base salary was reduced from $[•] (your “2020 Annual Base Salary”) to $[•], reflecting a 10% temporary reduction in your annualized base salary, and on June 1, 2020, your 2020 Annual Base Salary will be reduced by an additional [Ladhani: 10 // Pistono, Swyka and Law: 5]% such that your temporarily reduced base salary shall be $[•]. [Ladhani and Pistono: The Company and Rockwater Services intend // Swyka and Law: The Company intends] to reevaluate your annualized based salary quarterly. 

As you know, you and [Ladhani and Pistono: Rockwater Services // Swyka and Law: the Company] are parties to that certain Employment Agreement effective as of [Ladhani: June 1, 2011 // Pistono: September 4, 2012 // Swyka and Law: March 1, 2019] (as amended, the “Employment Agreement”)[, and you, Rockwater Services and Rockwater Energy Solutions, LLC (f/k/a Rockwater Energy Solutions, Inc.) are parties to that certain First Amendment to Employment Agreement dated February 21, 2020 (the “First Amendment”)]2. This letter shall be deemed to amend the Employment Agreement,[ as amended by the First Amendment,]3 as of the Effective Date, to the extent any provision of your Employment Agreement is inconsistent with this letter.  All other provisions of the Employment Agreement, [Ladhani and Pistono: including the provisions of Articles V, VI and VIII of the Employment Agreement // Swyka and Law: including the restrictive covenants set forth in Sections 9, 10 and 11 of the Employment Agreement], shall remain in full force and effect.  In signing below, you hereby explicitly consent to the changes described in this letter, and in return for your continued employment as described above, you hereby waive any and all rights you may have to terminate your employment with [Ladhani and Pistono: Rockwater Services // Swyka and Law: the Company] or its affiliates for Good Reason (or similar or related definitions) (as such term is defined in the Employment Agreement) as a result of these changes (including any right to receive any payments or benefits pursuant to the Employment Agreement or any other plan, program, or agreement sponsored or maintained by the Company or any of its affiliates (collectively, the “Company Plans”) as a result of these changes). For the avoidance of doubt, execution of this letter will not be deemed to constitute a (i) consent to any future modification to your responsibilities, duties or compensation 

	
	 

	
1 
	
 Note to Draft: Ladhani/Pistono 

	
2 
	
 Note to Draft: Ladhani/Pistono 

	
3 
	
 Note to Draft: Ladhani/Pistono

 

 

that are not described in this letter (such modifications, if any, the “Future Modifications”) or (ii) waiver of your right, if any, to terminate your employment with the Company or its Affiliates for Good Reason pursuant to the terms of your Employment Agreement or any other Company Plan as a result of any Future Modifications.

You further acknowledge that nothing in this letter shall be construed in any way to limit the right of [Ladhani and Pistono: Rockwater Services // Swyka and Law: the Company] or its affiliates to terminate your employment, with or without cause, or for you to terminate your employment with [Ladhani and Pistono: Rockwater Services // Swyka and Law: the Company] or its affiliates, with or without reason, nor shall this letter limit the rights of the stockholders of the Company under the Company’s Second Amended and Restated Bylaws. 

This letter shall still be terminated and become null and void following 30 days’ advance written notice by [Ladhani and Pistono: any of the parties hereto // Swyka and Law: either party hereto], and the terms of your Employment Agreement[, as amended by the First Amendment,]4 shall be reinstated to the extent amended by this letter.  If your annualized base salary on the 30th day following delivery of such notice is not at least equal to your 2020 Annual Base Salary, then as of such date, you shall have the right to terminate your employment with [Ladhani and Pistono: Rockwater Services // Swyka and Law: the Company] or its affiliates for Good Reason for [Ladhani and Pistono: 135 // Swyka and Law: 60] days thereafter as a result of the reduction of your 2020 Annual Base Salary pursuant to the terms of your Employment Agreement[, as amended by the First Amendment,]5 and [Ladhani and Pistono: Rockwater Services // Swyka and Law: the Company] shall have no right to cure such circumstances giving rise to your resignation for Good Reason. 

Notwithstanding anything in this letter to the contrary, in the event your employment with [Ladhani and Pistono: Rockwater Services // Swyka and Law: the Company] terminates in any manner such that a payment is required to be made to you pursuant to [Ladhani and Pistono: the provisions of Article VII // Swyka and Law: the provisions of Section 7] of the Employment Agreement, such payment shall be calculated using your 2020 Annual Base Salary as the “Base Salary” for purposes of such calculation. Any short-term incentive compensation targets for 2020 shall be calculated based on your 2020 Annual Base Salary. 

Please indicate your agreement with the foregoing by signing and dating below and returning an executed copy of this letter to me. 

[Signature Page to Follow]

	
	 

	
4 
	
 Note to Draft: Ladhani/Pistono

	
5 
	
 Note to Draft: Ladhani/Pistono

2

 

 

 

 

[ROCKWATER ENERGY SOLUTIONS ADMINISTRATIVE SERVICES, LLC]6

 

[SELECT ENERGY SERVICES, LLC]7

 

 

By:

Name: [                                     ]

Title: [                                       ]

 

 

AGREED AND ACKNOWLEDGED:

 

 

 

[Name]

Date: ______________________________

	
	 

	
6 
	
 Note to Draft: Ladhani/Pistono 

	
7 
	
 Note to Draft: Law/Swyka

3Exhibit
10.1

 

CORPORATE
RESOLUTION TO BORROW

 

	Principal

                                                                                $1,217,500.00
	Loan Date 04-17-2020	Maturity 04-17-2022	CL Transaction No	Product

                                                                                SBA Paycheck
                                                                                Protection
	Loan Account No

 

 

References
in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan
or item. Any item above containing “‘‘‘“ has been omitted due to text length limitations.

 

	Corporation:	Verb
        Technology Company, Inc.

        2210
        Newport Blvd. Suite 200

        Newport
        Beach, CA 92663
	Lender:	Zions
        Bancorporation, N.A. dba Zions First National Bank

        Centralized
        Underwriting Servicing

        One
        South Main Street

        Salt
        Lake City, UT 84133

 

 

WE,
THE UNDERSIGNED, DO HEREBY CERTIFY THAT:

 

THE
CORPORATION’S EXISTENCE. The complete and correct name of the Corporation is Verb Technology Company, Inc. (“Corporation”).
The Corporation is a corporation for profit which is, and at all times shall be, duly organized, validly existing, and in good
standing under and by virtue of the laws of the State of Nevada. The Corporation is duly authorized to transact business in all
other states in which the Corporation is doing business, having obtained all necessary filings, governmental licenses and approvals
for each state in which the Corporation is doing business. Specifically, the Corporation is, and at all times shall be, duly qualified
as a foreign corporation in all states in which the failure to so qualify would have a material adverse effect on its business
or financial condition. The Corporation has the full power and authority to own its properties and to transact the business in
which it is presently engaged or presently proposes to engage. The Corporation maintains an office at 2210 Newport Blvd. Suite
200, Newport Beach, CA 92663. Unless the Corporation has designated otherwise in writing, the principal office is the office at
which the Corporation keeps its books and records. The Corporation will notify Lender prior to any change in the location of the
Corporation’s state of organization or any change in the Corporation’s name. The Corporation shall do all things necessary
to preserve and to keep in full force and effect its existence, rights and privileges, and shall comply with all regulations,
rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable to the
Corporation and the Corporation’s business activities.

 

RESOLUTIONS
ADOPTED. At a meeting of the Directors of the Corporation, or if the Corporation is a close corporation having no Board of
Directors then at a meeting of the Corporation’s shareholders, duly called and held on April 17, 2020, at which a
quorum was present and voting, or by other duly authorized action in lieu of a meeting, the resolutions set forth in this Resolution
were adopted.

 

OFFICER.
The following named person is an officer of Verb Technology Company, Inc.:

 

	NAMES	 	TITLES	 	AUTHORIZED	 	ACTUAL SIGNATURES
	Jeff Clayborne	 	Official	 	Y	 	X
    /s/ Jeff Clayborne

 

ACTIONS
AUTHORIZED. The authorized person listed above may enter into any agreements of any nature with Lender, and those agreements
will bind the Corporation. Specifically, but without limitation, the authorized person is authorized, empowered, and directed
to do the following for and on behalf of the Corporation:

 

Borrow
Money. To borrow, as a cosigner or otherwise, from time to time from Lender, on such terms as may be agreed upon between the
Corporation and Lender, such sum or sums of money as in his or her judgment should be borrowed, without limitation.

 

Execute
Notes. To execute and deliver to Lender the promissory note or notes, or other evidence of the Corporation’s credit
accommodations, on Lender’s forms, at such rates of interest and on such terms as may be agreed upon, evidencing the sums
of money so borrowed or any of the Corporation’s indebtedness to Lender, and also to execute and deliver to Lender one or
more renewals, extensions, modifications, refinancings, consolidations, or substitutions for one or more of the notes, any portion
of the notes, or any other evidence of credit accommodations.

 

Execute
Security Documents. To execute and deliver to Lender the forms of mortgage, deed of trust, pledge agreement, hypothecation
agreement, and other security agreements and financing statements which Lender may require and which shall evidence the terms
and conditions under and pursuant to which such liens and encumbrances, or any of them, are given; and also to execute and deliver
to Lender any other written instruments, any chattel paper, or any other collateral, of any kind or nature, which Lender may deem
necessary or proper in connection with or pertaining to the giving of the liens and encumbrances.

 

Negotiate
Items. To draw, endorse, and discount with Lender all drafts, trade acceptances, promissory notes, or other evidences of indebtedness
payable to or belonging to the Corporation or in which the Corporation may have an interest, and either to receive cash for the
same or to cause such proceeds to be credited to the Corporation’s account with Lender, or to cause such other disposition
of the proceeds derived therefrom as he or she may deem advisable.

 

Further
Acts. In the case of lines of credit, to designate additional or alternate individuals as being authorized to request advances
under such lines, and in all cases, to do and perform such other acts and things, to pay any and all fees and costs, and to execute
and deliver such other documents and agreements as the officer may in his or her discretion deem reasonably necessary or proper
in order to carry into effect the provisions of this Resolution.

 

ASSUMED
BUSINESS NAMES. The Corporation has filed or recorded all documents or filings required by law relating to all assumed business
names used by the Corporation. Excluding the name of the Corporation, the following is a complete list of all assumed business
names under which the Corporation does business: None.

 

NOTICES
TO LENDER. The Corporation will promptly notify Lender in writing at Lender’s address shown above (or such other addresses
as Lender may designate from time to time) prior to any (A) change in the Corporation’s name; (B) change in the Corporation’s
assumed business name(s); (C) change in the management of the Corporation; (D) change in the authorized signer(s); (E) change
in the Corporation’s principal office address; (F) change in the Corporation’s state of organization; (G) conversion
of the Corporation to a new or different type of business entity; or (H) change in any other aspect of the Corporation that directly
or indirectly relates to any agreements between the Corporation and Lender. No change in the Corporation’s name or state
of organization will take effect until after Lender has received notice.

 

    	 	 	 

    	 	CORPORATE RESOLUTION TO BORROW
(Continued)
	Page 2

    

 

TREASURY
MANAGEMENT SERVICES. To accept and enter into deposit account, investment, funds transfer, and other banking service and product
agreements including but not limited to Bank’s Treasury Management Master Services Agreement (“MSA”),
Acceptances of Treasury Management Agreements (“Acceptances”), and “Specifications” (as
defined in the MSA) for treasury management services (“Services”), including amendments and addenda to any
of the foregoing; designate from time to time who is authorized to withdraw funds, initiate and approve payment orders, endorse
instruments, and execute service and product agreements; appoint “Administrators” (as defined in the MSA) who
are able to establish other Administrators, authorized users, security procedures, Specifications (as defined in the MSA), and
other setup details for Services; (D) request Services and execute documents that Bank may request, and any amendments or renewals
thereof, pertaining to the use of Services, including but not limited to designating one or more persons (which may include himself
or herself) authorized to initiate, amend, cancel, confirm, or verify the authenticity of instructions to Bank for Services, whether
given orally, electronically, or by facsimile instructions, and to revoke any authorization granted to any such person, as he
or she deems appropriate; and otherwise give instructions and authorizations on behalf of this Company for security procedures,
the Services and other banking services.

 

ORIGINALLY
EXECUTED RESOLUTION. This paragraph shall apply only in instances when Borrower is organized by virtue of the laws
of Colorado and Borrower is executing this Resolution under Colorado law. Upon request from Lender, Borrower shall deliver to
Lender fully-executed notarized Resolution with original hand-written signatures (i.e., wet signatures), and Borrower’s
failure to do so on or before such date shall constitute an Event of Default under the loan documents. Notwithstanding the foregoing,
this Resolution may be signed and transmitted by electronic mail of a PDF document with or without a notary acknowledgment and
thereafter maintained in imaged or electronic form, and that such imaged or electronic record shall be valid and effective to
bind the party so signing as a paper copy bearing such party’s hand-written signature. Borrower agrees that the signatures
appearing on this Resolution (whether in imaged, e-signed or other electronic format) shall be treated, for purpose of validity,
enforceability and admissibility, the same as hand-written signatures.

 

REPLACEMENT
OF ASSUMED BUSINESS NAMES. The section above titled “ASSUMED BUSINESS NAMES” is hereby deleted and replaced with the
following:

 

ASSUMED
BUSINESS NAMES. Borrower has filed or recorded all documents or filings required by law relating to all assumed business names
used by Borrower.

 

CERTIFICATION
CONCERNING OFFICERS AND RESOLUTIONS. The officer named above is duly elected, appointed, or employed by or for the Corporation,
as the case may be, and occupies the position set opposite his or her respective name. This Resolution now stands of record on
the books of the Corporation, is in full force and effect, and has not been modified or revoked in any manner whatsoever.

 

NO
CORPORATE SEAL. The Corporation has no corporate seal, and therefore, no seal is affixed to this Resolution.

 

CONTINUING
VALIDITY. Any and all acts authorized pursuant to this Resolution and performed prior to the passage of this Resolution are
hereby ratified and approved. This Resolution shall be continuing, shall remain in full force and effect and Lender may rely on
it until written notice of its revocation shall have been delivered to and received by Lender at Lender’s address shown
above (or such addresses as Lender may designate from time to time). Any such notice shall not affect any of the Corporation’s
agreements or commitments in effect at the time notice is given.

 

IN
TESTIMONY WHEREOF, we have hereunto set our hand and attest that the signature set opposite the name listed above is his or her
genuine signature.

 

We
each have read all the provisions of this Resolution, and we each personally and on behalf of the Corporation certify that all
statements and representations made in this Resolution are true and correct. This Corporate Resolution to Borrow is dated April
17, 2020.

 

	 	CERTIFIED TO AND ATTESTED BY:
	 	 	 
	 	By:	/s/
    Jeff Clayborne
	 		Authorized
    Signer for Verb Technology Company, Inc.

 

NOTE:
If the officer signing this Resolution is designated by the foregoing document as one of the officers authorized to act on the
Corporation’s behalf, it is advisable to have this Resolution signed by at least one non-authorized officer of the Corporation.

 

    	 	 	 

    	 	 	 

    

 

PROMISSORY
NOTE

 

	Principal $1,217,500.00	Loan Date 04-17-2020	Maturity 04-17-2022	CL Transaction No	Product

                                                                                SBA Paycheck Protection
	Loan Account No

 

 

References
in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan
or item.

Any item above containing “‘‘‘“ has been omitted due to text length limitations.

 

	Corporation:	Verb
        Technology Company, Inc.

        2210
        Newport Blvd. Suite 200

        Newport
        Beach, CA 92663
	Lender:	Zions
        Bancorporation, N.A. dba Zions First National Bank

        Centralized
        Underwriting Servicing

        One
        South Main Street

        Salt
        Lake City, UT 84133

 

 

	Principal
    Amount: $1,217,500.00	Interest
    Rate: 1.000%	Date
    of Note: April 17, 2020

 

PROMISE
TO PAY. Verb Technology Company, Inc. (“Borrower”) promises to pay to Zions Bancorporation, N.A. dba Zions First National
Bank (“Lender”), or order, in lawful money of the United States of America, the principal amount of One Million Two
Hundred Seventeen Thousand Five Hundred a 00/100 Dollars ($1,217,500.00), together with interest on the unpaid principal balance
from April 17, 2020, calculated as described in the “INTEREST CALCULATION METHOD” paragraph using an interest rate
of 1.000% per annum, until paid in full. The interest rate may change under the terms and conditions of the “INTEREST AFTER
DEFAULT” section.

 

PAYMENT.
Borrower will pay this loan in 18 payments of $68,517.23 each payment. Borrower’s first payment is due November 17, 2020,
and all subsequent payments are due on the same day of each month after that. Borrower’s final payment will be due on April
17, 2022, and will be for all principal and all accrued interest not yet paid. Payments include principal and interest. Unless
otherwise agreed or required by applicable law, payments will be applied to first to any accrued unpaid interest; then to principal
which is currently due; then to pay any late fees; and then to further reduce the principal balance. Borrower will pay Lender
at Lender’s address shown above or at such other place as Lender may designate in writing.

 

INITIAL
DEFERMENT PERIOD. No payments are due on this loan for 6 months from the date of first disbursement of this loan. Interest
will continue to accrue during the deferment period.

 

Loan
Forgiveness. Borrower may apply to Lender for forgiveness of the amount due on this loan in an amount equal to the sum of
the following costs incurred by Borrower during the 8-week period beginning on the date of first disbursement of this loan:

 

a.
Payroll costs

 

b.
Any payment of interest on a covered mortgage obligation (which shall not include any prepayment of or payment of principal on
a covered mortgage obligation)

 

c.
Any payment on a covered rent obligation

 

d.
Any covered utility payment The amount of loan forgiveness shall be calculated (and may be reduced) in accordance with the requirements
of the Paycheck Protection Program, including the provisions of Section 1106 of the Coronavirus Aid, Relief, and Economic Security
Act (CARES Act) (P.L. 116-136). Not more than 25% of the amount forgiven can be attributable to non-payroll costs.

 

Maturity.
This Note will mature two years from date of first disbursement of this loan.

 

Repayment
Terms. The interest rate on this Note is one percent per year. The interest rate is fixed and will not be changed during the
life of the loan.

 

Non-Recourse.
Lender and SBA shall have no recourse against any individual shareholder, member or partner of Borrower for non-payment of
the loan, except to the extent that such shareholder, member or partner uses the loan proceeds for an unauthorized purpose.

 

INTEREST
RATE MODIFICATION. Notwithstanding anything to the contrary contained herein, if the Small Business Administration (“SBA”)
purchases the guaranteed portion of the unpaid principal balance of this Note, the interest rate on this Note shall be fixed at
the rate in effect at the time of the earliest uncured payment default hereunder. If there is no uncured payment default, the
rate shall become fixed at the rate in effect at the time of said purchase by the SBA.

 

INTEREST
CALCULATION METHOD. Interest on this Note is computed on a 365/365 simple interest basis; that is, by applying the ratio of the
interest rate over the number of days in a year (365 for all years, including leap years), multiplied by the outstanding principal
balance, multiplied by the actual number of days the principal balance is outstanding. All interest payable under this Note is
computed using this method.

 

PREPAYMENT.
Borrower may pay without penalty all or a portion of the amount owed earlier than it is due. Early payments will not, unless
agreed to by Lender in writing, relieve Borrower of Borrower’s obligation to continue to make payments under the payment
schedule. Rather, early payments will reduce the principal balance due and may result in Borrower’s making fewer payments.
Borrower agrees not to send Lender payments marked “paid in full”, “without recourse”, or similar language.
If Borrower sends such a payment, Lender may accept it without losing any of Lender’s rights under this Note, and Borrower
will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including
any check or other payment instrument that indicates that the payment constitutes “payment in full” of the amount
owed or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered
to: Zions Bancorporation, N.A. dba Zions First National Bank, P.O. Box 25822 Salt Lake City, UT 84125-0822.

 

    	 	 	 

    	 	PROMISSORY NOTE
(Continued)
	Page 2

    

 

LOAN
PREPAYMENT.

 

Notwithstanding
any provision in this Note to the contrary:

 

Borrower
may prepay this note. Borrower may prepay 20 percent or less of the unpaid principal balance at any time without notice. If
Borrower prepays more than 20 percent and the Loan has been sold on the secondary market, Borrower must:

 

a.
Give Lender written notice;

 

b.
Pay all accrued interest; and

 

c.
If the prepayment is received less than 21 days from the date the Lender receives the notice, pay an amount equal to 21 days’
interest from the date Lender receives the notice, less any interest accrued during the 21 days and paid under subparagraph b.,
above.

 

If
Borrower does not prepay within 30 days from the date Lender receives the notice, Borrower must give Lender a new notice.

 

LATE
CHARGE. If a payment is 10 days or more late, Borrower will be charged 5.000% of the unpaid portion of the regularly scheduled
payment.

 

INTEREST
AFTER DEFAULT. Upon default, including failure to pay upon final maturity, the total sum due under this Note will continue
to accrue interest at the interest rate under this Note.

 

DEFAULT.
Each of the following shall constitute an event of default (“Event of Default”) under this Note: Payment Default.
Borrower fails to make any payment when due under this Note.

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this
Note or in any of the related documents or to comply with or to perform any term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.

 

Default
in Favor of Third Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase
or sales agreement, or any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s
property or Borrower’s ability to repay this Note or perform Borrower’s obligations under this Note or any of the
related documents.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf
under this Note or the related documents is false or misleading in any material respect, either now or at the time made or furnished
or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment
of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout,
or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim
which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Events
Affecting Guarantor. Any of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation
party of any of the indebtedness or any guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes
or disputes the validity of, or liability under, any guaranty of the indebtedness evidenced by this Note.

 

Change
In Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse
Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment
or performance of this Note is impaired.

 

Insecurity.
Lender in good faith believes itself insecure.

 

Cure
Provisions. If any default, other than a default in payment, is curable and if Borrower has not been given a notice of a breach
of the same provision of this Note within the preceding twelve (12) months, it may be cured if Borrower, after Lender sends written
notice to Borrower demanding cure of such default: (1) cures the default within fifteen (15) days; or (2) if the cure requires
more than fifteen (15) days, immediately initiates steps which Lender deems in Lender’s sole discretion to be sufficient
to cure the default and thereafter continues and completes all reasonable and necessary steps sufficient to produce compliance
as soon as reasonably practical.

 

INVOICING
INTEREST AFTER DEFAULT. When the interest rate payable under this Note has been increased under the section above entitled
“Interest After Default,” Lender may invoice Borrower for a single amount of accrued interest that represents the
sum of both (i) accrual under the interest rate applicable in the absence of default (“ordinary interest”), and (ii)
additional accrual resulting from the default and interest rate increase (“default interest”). Alternatively, in Lender’s
sole discretion, Lender’s invoice may identify the ordinary interest and default interest as separate amounts. Lender’s
invoice may caption default interest as “Late Charges” or the like, but said amount shall in all respects constitute
interest.

 

LENDER’S
RIGHTS. Upon default, Lender may declare the entire unpaid principal balance under this Note and all accrued unpaid interest
immediately due, and then Borrower will pay that amount.

 

WHEN
FEDERAL LAW APPLIES. When SBA is the holder, this Note will be interpreted and enforced under federal law, including SBA regulations.
Lender or SBA may use state or local procedures for filing papers, recording documents, giving notice, foreclosing liens, and
other purposes. By using such procedures, SBA does not waive any federal immunity from state or local control, penalty, tax, or
liability. As to this Note, Borrower may not claim or assert against SBA any local or state law to deny any obligation, defeat
any claim of SBA, or preempt federal law.

 

    	 	 	 

    	 	PROMISSORY NOTE
(Continued)
	Page 3

    

 

ATTORNEYS’
FEES; EXPENSES. Lender may hire or pay someone else to help collect this Note if Borrower does not pay. Borrower will pay
Lender that amount. This includes, subject to any limits under applicable law, Lender’s reasonable attorneys’ fees
and Lender’s legal expenses, whether or not there is a lawsuit, including without limitation all reasonable attorneys’
fees and legal expenses for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), and
appeals. If not prohibited by applicable law, Borrower also will pay any court costs, in addition to all other sums provided by
law.

 

GOVERNING
LAW. This Note will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws
of the State of Utah without regard to its conflicts of law provisions. This Note has been accepted by Lender in the State of
Utah.

 

CHOICE
OF VENUE. If there is a lawsuit, Borrower agrees upon Lender’s request to submit to the jurisdiction of the courts of
Salt Lake County, State of Utah.

 

DISHONORED
ITEM FEE. Borrower will pay a fee to Lender of $15.00 if Borrower makes a payment on Borrower’s loan and the check or
preauthorized charge with which Borrower pays is later dishonored.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with
Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else
and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on the debt against any and all such accounts, and, at Lender’s option, to administratively freeze
all such accounts to allow Lender to protect Lender’s charge and setoff rights provided in this paragraph.

 

WAIVER
OF DEFENSES AND RELEASE OF CLAIMS. The undersigned hereby (i) represents that neither the undersigned nor any affiliate or principal
of the undersigned has any defenses to or setoffs against any Indebtedness or other obligations owing by the undersigned, or by
the undersigned’s affiliates or principals, to Lender or Lender’s affiliates (the “Obligations”), nor
any claims against Lender or Lender’s affiliates for any matter whatsoever, related or unrelated to the Obligations, and
(ii) releases Lender and Lender’s affiliates, officers, directors, employees and agents from all claims, causes of action,
and costs, in law or equity, known or unknown, whether or not matured or contingent, existing as of the date hereof that the undersigned
has or may have by reason of any matter of any conceivable kind or character whatsoever, related or unrelated to the Obligations,
including the subject matter of this Agreement. The foregoing release does not apply, however, to claims for future performance
of express contractual obligations that mature after the date hereof that are owing to the undersigned by Lender or Lender’s
affiliates. As used in this paragraph, the word “undersigned” does not include Lender or any individual signing on
behalf of Lender. The undersigned acknowledges that Lender has been induced to enter into or continue the Obligations by, among
other things, the waivers and releases in this paragraph.

 

DISPUTE
RESOLUTION PROVISION. This Dispute Resolution Provision contains a jury waiver, a class action waiver, and an arbitration clause
(or judicial reference agreement, as applicable), set out in four Sections. READ IT CAREFULLY.

 

This
dispute resolution provision shall supersede and replace any prior “Jury Waiver,” “Judicial Reference,”
“Class Action Waiver,” “Arbitration,” “Dispute Resolution,” or similar alternative dispute
agreement or provision between or among the parties.

 

Notwithstanding
anything to the contrary herein, the parties acknowledge and agree that the Dispute Resolution Provision contained herein is not
enforceable at any time that the SBA is the holder of the Promissory Note which evidences the Loan.

 

SECTION
1. GENERAL PROVISIONS GOVERNING ALL DISPUTES.

 

1.1
PRIOR DISPUTE RESOLUTION AGREEMENTS SUPERSEDED. This Dispute Resolution Provision shall supersede and replace any prior “Jury
Waiver,” “Judicial Reference,” “Class Action Waiver,” “Arbitration,” “Dispute
Resolution,” or similar alternative dispute agreement or provision between or among the parties.

 

1.2
“DISPUTE” defined. As used herein, the word “Dispute” includes, without limitation, any claim by either
party against the other party related to this Agreement, any Related Document, and the Loan evidenced hereby. In addition, “Dispute”
also includes any claim by either party against the other party regarding any other agreement or business relationship between
any of them, whether or not related to the Loan or other subject matter of this Agreement. “Dispute” includes,
but is not limited to, matters arising from or relating to a deposit account, an application for or denial of credit, warranties
and representations made by a party, the adequacy of a party’s disclosures, enforcement of any and all of the obligations
a party hereto may have to another party, compliance with applicable laws and/or regulations, performance or services provided
under any agreement by a party, including without limitation disputes based on or arising from any alleged tort or matters involving
the employees, officers, agents, affiliates, or assigns of a party hereto.

 

If
a third party is a party to a Dispute (such as a credit reporting agency, merchant accepting a credit card, junior lienholder
or title company), each party hereto agrees to consent to including that third party in any arbitration or judicial reference
proceeding for resolving the Dispute with that party.

 

1.3
Jury Trial Waiver. Each party waives their respective rights to a trial before a jury in connection with any Dispute,
and all Disputes shall be resolved by a judge sitting without a jury. If a court determines that this jury trial
waiver is not enforceable for any reason, then at any time prior to trial of the Dispute, but not later than 30 days after
entry of the order determining this provision is unenforceable, any party shall be entitled to move the court for an order,
as applicable: (A) compelling arbitration and staying or dismissing such litigation pending arbitration (“Arbitration Order”)
under Section 2 hereof, or (B) staying such litigation and compelling judicial reference under Section 3 hereof.

 

1.4
CLASS ACTION WAIVER. If permitted by applicable law, each party waives the right to litigate in court or an arbitration
proceeding any Dispute as a class action, either as a member of a class or as a representative, or to act as a private attorney
general.

 

1.5
SURVIVAL. This Dispute Resolution Provision shall survive any termination, amendment or expiration of this Agreement, or any
other relationship between the parties.

 

    	 	 	 

    	 	PROMISSORY NOTE
(Continued)
	Page 4

    

 

SECTION
2. Arbitration IF JURY WAIVER UNENFORCEABLE (EXCEPT CALIFORNIA). If (but only if) a state or federal court located outside
the state of California determines for any reason that the jury trial waiver in this Dispute Resolution Provision is not enforceable
with respect to a Dispute, then any party hereto may require that said Dispute be resolved by binding arbitration pursuant to
this Section 2 before a single arbitrator. An arbitrator shall have no authority to determine matters (i) regarding the validity,
enforceability, meaning, or scope of this Dispute Resolution Provision, or (ii) class action claims brought by either party as
a class representative on behalf of others and claims by a class representative on either party’s behalf as a class member,
which matters may be determined only by a court without a jury. By agreeing to arbitrate a Dispute, each party gives up
any right that party may have to a jury trial, as well as other rights that party would have in court that are not available or
are more limited in arbitration, such as the rights to discovery and to appeal.

 

Arbitration
shall be commenced by filing a petition with, and in accordance with the applicable arbitration rules of, National Arbitration
Forum (“NAF”) or Judicial Arbitration and Mediation Service, Inc. (“JAMS”) (“Administrator”)
as selected by the initiating party. However, if the parties agree, arbitration may be commenced by appointment of a licensed
attorney who is selected by the parties and who agrees to conduct the arbitration without an Administrator. If NAF and JAMS both
decline to administer arbitration of the Dispute, and if the parties are unable to mutually agree upon a licensed attorney to
act as arbitrator with an Administrator, then either party may file a lawsuit (in a court of appropriate venue outside the state
of California) and move for an Arbitration Order. The arbitrator, howsoever appointed, shall have expertise in the subject matter
of the Dispute. Venue for the arbitration proceeding shall be at a location determined by mutual agreement of the parties or,
if no agreement, in the city and state where Lender or Bank is headquartered. The arbitrator shall apply the law of the state
specified in the agreement giving rise to the Dispute.

 

After
entry of an Arbitration Order, the non-moving party shall commence arbitration. The moving party shall, at its discretion, also
be entitled to commence arbitration but is under no obligation to do so, and the moving party shall not in any way be adversely
prejudiced by electing not to commence arbitration. The arbitrator: (i) will hear and rule on appropriate dispositive motions
for judgment on the pleadings, for failure to state a claim, or for full or partial summary judgment; (ii) will render a decision
and any award applying applicable law; (iii) will give effect to any limitations period in determining any Dispute or defense;
(iv) shall enforce the doctrines of compulsory counterclaim, res judicata, and collateral estoppel, if applicable; (v) with regard
to motions and the arbitration hearing, shall apply rules of evidence governing civil cases; and (vi) will apply the law of the
state specified in the agreement giving rise to the Dispute. Filing of a petition for arbitration shall not prevent any party
from (i) seeking and obtaining from a court of competent jurisdiction (notwithstanding ongoing arbitration) provisional or ancillary
remedies including but not limited to injunctive relief, property preservation orders, foreclosure, eviction, attachment, replevin,
garnishment, and/or the appointment of a receiver, (ii) pursuing non-judicial foreclosure, or (iii) availing itself of any self-help
remedies such as setoff and repossession. The exercise of such rights shall not constitute a waiver of the right to submit any
Dispute to arbitration.

 

Judgment
upon an arbitration award may be entered in any court having jurisdiction except that, if the arbitration award exceeds $4,000,000,
any party shall be entitled to a de novo appeal of the award before a panel of three arbitrators. To allow for such appeal, if
the award (including Administrator, arbitrator, and attorney’s fees and costs) exceeds $4,000,000, the arbitrator will issue
a written, reasoned decision supporting the award, including a statement of authority and its application to the Dispute. A request
for de novo appeal must be filed with the arbitrator within 30 days following the date of the arbitration award; if such a request
is not made within that time period, the arbitration decision shall become final and binding. On appeal, the arbitrators shall
review the award de novo, meaning that they shall reach their own findings of fact and conclusions of law rather than deferring
in any manner to the original arbitrator. Appeal of an arbitration award shall be pursuant to the rules of the Administrator or,
if the Administrator has no such rules, then the JAMS arbitration appellate rules shall apply.

 

Arbitration
under this provision concerns a transaction involving interstate commerce and shall be governed by the Federal Arbitration Act,
9 U.S.C. § 1 et seq. If the terms of this Section 2 vary from the Administrator’s rules, this Section 2 shall control.

 

SECTION
3. JUDICIAL REFERENCE IF JURY WAIVER UNENFORCEABLE (CALIFORNIA ONLY). If (but only if) a Dispute is filed in a state or federal
court located within the state of California, and said court determines for any reason that the jury trial waiver in this Dispute
Resolution Provision is not enforceable with respect to that Dispute, then any party hereto may require that Dispute be resolved
by judicial reference in accordance with California Code of Civil Procedure, Sections 638, et seq., including without limitation
whether the Dispute is subject to a judicial reference proceeding. By agreeing to resolve Disputes by judicial reference,
each party is giving up any right that party may have to a jury trial. The referee shall be a retired judge, agreed upon
by the parties, from either the American Arbitration Association (AAA) or Judicial Arbitration and Mediation Service, Inc. (JAMS).
If the parties cannot agree on the referee, the party who initially selected the reference procedure shall request a panel of
ten retired judges from either AAA or JAMS, and the court shall select the referee from that panel. (If AAA and JAMS are unavailable
to provide this service, the court may select a referee by such other procedures as are used by that court.) The referee shall
be appointed to sit with all of the powers provided by law, including the power to hear and determine any or all of the issues
in the proceeding, whether of fact or of law, and to report a statement of decision. The parties agree that time is of the essence
in conducting the judicial reference proceeding set forth herein. The costs of the judicial reference proceeding, including the
fee for the court reporter, shall be borne equally by the parties as the costs are incurred, unless otherwise awarded by the referee.
The referee shall hear all pre-trial and post-trial matters (including without limitation requests for equitable relief), prepare
a statement of decision with written findings of fact and conclusions of law, and apportion costs as appropriate. The referee
shall be empowered to enter equitable relief as well as legal relief, provide all temporary or provisional remedies, enter equitable
orders that are binding on the parties and rule on any motion that would be authorized in a trial, including without limitation
motions for summary adjudication. Only for this Section 3, “Dispute” includes matters regarding the validity, enforceability,
meaning, or scope of this Section, and (ii) class action claims brought by either party as a class representative on behalf
of others and claims by a class representative on either party’s behalf as a class member. Judgment upon the award shall
be entered in the court in which such proceeding was commenced and all parties shall have full rights of appeal. This provision
will not be deemed to limit or constrain Bank or Lender’s right of offset, to obtain provisional or ancillary remedies,
to interplead funds in the event of a dispute, to exercise any security interest or lien Bank or Lender may hold in property or
to comply with legal process involving accounts or other property held by Bank or Lender.

 

Nothing
herein shall preclude a party from moving (prior to the court ordering judicial reference) to dismiss, stay or transfer the suit
to a forum outside California on grounds that California is an improper, inconvenient or less suitable venue. If such motion is
granted, this Section 3 shall not apply to any proceedings in the new forum.

 

This
Section 3 may be invoked only with regard to Disputes filed in state or federal courts located in the State of California. In
no event shall the provisions in this Section 3 diminish the force or effect of any venue selection or jurisdiction provision
in this Agreement or any Related Document.

 

SECTION
4. Reliance. Each party (i) certifies that no one has represented to such party that the other party would not seek to enforce
a jury waiver, class action waiver, arbitration provision or judicial reference provision in the event of suit, and (ii) acknowledges
that it and the other party have been induced to enter into this Agreement by, among other things, material reliance upon the
mutual waivers, agreements, and certifications in the four Sections of this DISPUTE RESOLUTION PROVISION.

 

    	 	 	 

    	 	PROMISSORY NOTE
(Continued)
	Page 5

    

 

ON-LINE
BANKING — ADVANCES. From time to time, Lender may (but shall not be required to) permit advances to be requested or
drawn through its online banking website. Lender may impose and change limitations on online advance requests, such as minimum
or maximum advance dollar amounts, and the types of accounts into which advances may be transferred. Whether online advances are
permitted, and Lender’s applicable terms and restrictions if such advances are permitted, will be reflected in the features
available online when a user logs into the online banking website.

 

ON-LINE
BANKING — LOAN PAYMENTS. From time to time, Lender may (but shall not be required to) permit loan payments to be made
through its online banking website. Lender may impose and change limitations on making online loan payments, such as minimum or
maximum payment amounts, the types of accounts from which loan payments may be made, and the types of payments that may be made
online (i.e., ordinary installment payments, principal-only payments, or other types of payments). Whether online payments are
permitted, and Lender’s applicable terms and restrictions if such payments are permitted, will be reflected in the features
available online when a user logs into the online banking website.

 

CREATION
OF TRUSTS, AND TRANSFERS TO TRUSTS. This paragraph shall apply in instances where this Agreement is governed by Utah law.
Neither Borrower nor any Guarantor shall create as settlor any trust, or transfer any assets into any trust, without giving written
notice to Lender at least ninety (90) days prior to such creation or transfer. That notice shall describe in reasonable detail
the trust to be created and/or the asset transfer to be made. Failure by any such settlor to provide that notice shall be an event
of default under this instrument and the Loan.

 

Neither
Borrower nor any Guarantor shall create as settlor any actual or purported spendthrift trust, asset protection trust or any other
trust intended by its terms or purpose (or having the effect) to protect assets from creditors or to limit the rights of existing
or future creditors (an “Asset Protection Trust”) without the prior written consent of Lender. Lender may withhold
that consent in its sole discretion. Creation of any Asset Protection Trust, and each transfer of assets thereto, by any such
settlor without Lender’s prior written consent:

 

(a)
shall be an event of default under this instrument and the Loan,

 

(b)
shall have the effect of, and shall be deemed as a matter of law, regardless of that settlor’s solvency, of having been
made by that settlor with the actual intent of hindering and delaying and defrauding Lender as that settlor’s creditor,
and

 

(c)
shall constitute a fraudulent transfer that is unenforceable and void (not merely voidable) as against Lender.

 

With
respect to each such fraudulent transfer, Lender shall have all the rights and remedies provided by state fraudulent transfer
laws, or otherwise provided at law or equity. Lender shall have the right to obtain an ex parte court order directing the trustee
of the Asset Protection Trust to give Lender written notice a reasonable time (of no less than ten business days) prior to making
any distribution from said trust. Nothing in this paragraph shall limit or affect any rights or remedies otherwise provided to
Lender by law, equity or any contract.

 

REPORTING
NEGATIVE INFORMATION. We (Lender) may report information about your (Borrower’s) account to credit bureaus. Late payments,
missed payments, or other defaults on your account may be reflected in your credit report.

 

SUCCESSOR
INTERESTS. The terms of this Note shall be binding upon Borrower, and upon Borrower’s heirs, personal representatives,
successors and assigns, and shall inure to the benefit of Lender and its successors and assigns.

 

GENERAL
PROVISIONS. If any part of this Note cannot be enforced, this fact will not affect the rest of the Note. Lender may delay
or forgo enforcing any of its rights or remedies under this Note without losing them. Borrower and any other person who signs,
guarantees or endorses this Note, to the extent allowed by law, waive presentment, demand for payment, and notice of dishonor.
Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note, whether
as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender may
renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair,
fail to realize upon or perfect Lender’s security interest in the collateral; and take any other action deemed necessary
by Lender without the consent of or notice to anyone. All such parties also agree that Lender may modify this loan without the
consent of or notice to anyone other than the party with whom the modification is made. The obligations under this Note are joint
and several.

 

PRIOR
TO SIGNING THIS NOTE, BORROWER READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE. BORROWER AGREES TO THE TERMS OF THE NOTE.

 

BORROWER
ACKNOWLEDGES RECEIPT OF A COMPLETED COPY OF THIS PROMISSORY NOTE.

 

BORROWER:

 

	VERB TECHNOLOGY
    COMPANY, INC.	 
	 	 	 
	By:	/s/
    Jeff Clayborne	 
	 	Jeff
    Clayborne, Official of Verb Technology Company, Inc.	 

 

    	 	 	 

    	 	 	 

    

 

BUSINESS
LOAN AGREEMENT

 

	Principal $1,217,500.00	Loan Date 04-17-2020	Maturity 04-17-2022	CL Transaction No	Product

                                                                                SBA Paycheck Protection
	Loan Account No

 

 

References
in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan
or item.

Any item above containing “‘‘‘“ has been omitted due to text length limitations.

 

	Corporation:	Verb
        Technology Company, Inc.

        2210
        Newport Blvd. Suite 200

        Newport
        Beach, CA 92663
	Lender:	Zions
        Bancorporation, N.A. dba Zions First National Bank

        Centralized
        Underwriting Servicing

        One
        South Main Street

        Salt
        Lake City, UT 84133

 

 

THIS
BUSINESS LOAN AGREEMENT dated April 17, 2020, is made and executed between Verb Technology Company, Inc. (“Borrower”)
and Zions Bancorporation, N.A. dba Zions First National Bank (“Lender”) on the following terms and conditions. Borrower
has applied to Lender for a commercial loan under the SBA Paycheck Protection Program, (“SBA Paycheck Protection Program”)
authorized by the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”) (P.L. 116-136). Borrower understands
and agrees that: (A) in granting, renewing, or extending any Loan, Lender is relying upon Borrower’s representations, warranties,
and agreements as set forth in this Agreement and any Related Documents; (B) the granting, renewing, or extending of a Loan by
Lender at all times shall be subject to Lender’s sole judgment and discretion; and (C) all such Loans shall be and remain
subject to the terms and conditions of this Agreement.

 

TERM.
This Agreement shall be effective as of April 17, 2020, and shall continue in full force and effect until such time as Borrower’s
Loan in favor of Lender has been paid in full, including principal, interest, costs, expenses, attorneys’ fees, and other
fees and charges, or until such time as the parties may agree in writing to terminate this Agreement.

 

CONDITIONS
PRECEDENT TO EACH ADVANCE. Lender’s obligation to make the initial Advance and each subsequent Advance under this Agreement
shall be subject to the fulfillment to Lender’s satisfaction of all of the conditions set forth in this Agreement and in
the Related Documents.

 

Loan
Documents. Borrower shall provide to Lender the following documents for the Loan: (1) the Note; (2) together with all such
Related Documents as Lender may require for the Loan; all in form and substance satisfactory to Lender and Lender’s counsel.

 

Borrower’s
Authorization. Borrower shall have provided in form and substance satisfactory to Lender properly certified resolutions, duly
authorizing the execution and delivery of this Agreement, the Note and the Related Documents. In addition, Borrower shall have
provided such other resolutions, authorizations, documents and instruments as Lender or its counsel, may require.

 

Representations
and Warranties. The representations and warranties set forth in this Agreement, in the Related Documents, and in any document
or certificate delivered to Lender under this Agreement are true and correct.

 

No
Event of Default. There shall not exist at the time of any Advance a condition which would constitute an Event of Default
under this Agreement or under any Related Document.

 

REPRESENTATIONS
AND WARRANTIES. Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement
of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness exists:

 

Organization.
Borrower is an entity type designated in the application for this Loan, and at all times shall be, duly organized, validly
existing, and in good standing under and by virtue of the laws of the State of organization identified in Borrower’s application
for this Loan. Borrower is duly authorized to transact business in all other states in which Borrower is doing business, having
obtained all necessary filings, governmental licenses and approvals for each state in which Borrower is doing business. Specifically,
Borrower is, and at all times shall be, duly qualified as a foreign corporation in all states in which the failure to so qualify
would have a material adverse effect on its business or financial condition. Borrower has the full power and authority to own
its properties and to transact the business in which it is presently engaged or presently proposes to engage. Unless Borrower
has designated otherwise in writing, the principal office is the office at which Borrower keeps its books and records. Borrower
will notify Lender prior to any change in the location of Borrower’s state of organization or any change in Borrower’s
name. Borrower shall do all things necessary to preserve and to keep in full force and effect its existence, rights and privileges,
and shall comply with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental
authority or court applicable to Borrower and Borrower’s business activities.

 

Assumed
Business Names. Borrower has filed or recorded all documents or filings required by law relating to all assumed business names
used by Borrower.

 

Authorization.
Borrower’s execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized
by all necessary action by Borrower and do not conflict with, result in a violation of, or constitute a default under (1) any
provision of (a) Borrower’s articles of incorporation or organization, or bylaws, or (b) any agreement or other instrument
binding upon Borrower or (2) any law, governmental regulation, court decree, or order applicable to Borrower or to Borrower’s
properties.

 

Legal
Effect. This Agreement constitutes, and any instrument or agreement Borrower is required to give under this Agreement when
delivered will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their
respective terms.

 

Litigation
and Claims. No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes)
against Borrower is pending or threatened, other than litigation, claims, or other events, if any, that have been disclosed to
and acknowledged by Lender in writing.

 

Taxes.
To the best of Borrower’s knowledge, all of Borrower’s tax returns and reports that are or were required to be
filed, have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently
being or to be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been
provided. The tax, payroll and other documents supplied to Lender to support the Loan amount are true and accurate.

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 2

    

 

Eligible
Borrower. Borrower is an eligible recipient of this Loan under the SBA Paycheck Protection Program of the CARES Act. Borrower
certifies that the Average Monthly Payroll amount set forth in Borrower’s application made in connection with this Loan
is true and correct. Borrower further certifies that Borrower is entitled to receive the amount of the Loan pursuant to the terms
and conditions of the SBA Paycheck Protection Program. Borrower acknowledges and agrees that all rules and regulations applicable
to the SBA Paycheck Protection Program, as such may be amended, apply to the Loan. Borrower agrees to deliver all certifications,
documents, information and agreement the SBA or Lender may require in connection with the Paycheck Protection Program. Borrower
understands that Lender is relying on Borrower’s certifications made in connection with this Loan and Borrower’s determination
that Borrower is eligible to receive this Loan. Lender assumes no responsibility for determining Borrower’s eligibility
or the loan amount. If it is later determined that Borrower is ineligible to receive this Loan or Borrower is not entitled to
receive the loan amount, Borrower and its owners may be subject to penalties under the SBA Paycheck Protection

 

Program.
Borrower and its owners agree to hold Lender harmless for any certification made by Borrower or an owner in connection with this
Loan that is determined to be incorrect or for any remedial action taken as a result of such certifications that are incorrect.

 

Binding
Effect. This Agreement, the Note, and all Related Documents are binding upon the signers thereof, as well as upon their successors,
representatives and assigns, and are legally enforceable in accordance with their respective terms.

 

AFFIRMATIVE
COVENANTS. Borrower covenants and agrees with Lender that, so long as this Agreement remains in effect, Borrower will:

 

Notices
of Claims and Litigation. Promptly inform Lender in writing of (1) all existing and all threatened litigation, claims, investigations,
administrative proceedings or similar actions affecting Borrower which could materially affect the financial condition of Borrower.

 

Financial
Records. Maintain its books and records in accordance with GAAP or other accounting method acceptable to Lender, applied on
a consistent basis, and permit Lender to examine and audit Borrower’s books and records at all reasonable times.

 

Additional
Information. Furnish such additional information and statements, as Lender may request from time to time.

 

Insurance.
Maintain fire and other risk insurance, public liability insurance, and such other insurance as Lender may require with respect
to Borrower’s properties and operations, in form, amounts, coverages and with insurance companies acceptable to Lender.

 

Other
Agreements. Comply with all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower
and any other party and notify Lender immediately in writing of any default in connection with any other such agreements.

 

Loan
Proceeds. Use all Loan proceeds solely for permitted uses under the CARES Act for Borrower’s business operations, unless
specifically consented to the contrary by Lender in writing.

 

Taxes,
Charges and Liens. Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments,
taxes, governmental charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits,
prior to the date on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any
of Borrower’s properties, income, or profits. Provided however, Borrower will not be required to pay and discharge any such
assessment, tax, charge, levy, lien or claim so long as (1) the legality of the same shall be contested in good faith by appropriate
proceedings, and (2) Borrower shall have established on Borrower’s books adequate reserves with respect to such contested
assessment, tax, charge, levy, lien, or claim in accordance with GAAP.

 

Performance.
Perform and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the Related
Documents, and in all other instruments and agreements between Borrower and Lender. Borrower shall notify Lender immediately in
writing of any default in connection with any agreement.

 

Operations.
Maintain executive and management personnel with substantially the same qualifications and experience as the present executive
and management personnel; provide written notice to Lender of any change in executive and management personnel; conduct its business
affairs in a reasonable and prudent manner.

 

Compliance
with Governmental Requirements. Comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental
authorities applicable to the conduct of Borrower’s properties, businesses and operations, and to the use or occupancy of
the Collateral, including without limitation, the Americans With Disabilities Act. Borrower may contest in good faith any such
law, ordinance, or regulation and withhold compliance during any proceeding, including appropriate appeals, so long as Borrower
has notified Lender in writing prior to doing so and so long as, in Lender’s sole opinion, Lender’s interests in the
Collateral are not jeopardized. Lender may require Borrower to post adequate security or a surety bond, reasonably satisfactory
to Lender, to protect Lender’s interest.

 

Inspection.
Permit employees or agents of Lender at any reasonable time to examine or audit Borrower’s books, accounts, and records
and to make copies and memoranda of Borrower’s books, accounts, and records. If Borrower now or at any time hereafter maintains
any records (including without limitation computer generated records and computer software programs for the generation of such
records) in the possession of a third party, Borrower, upon request of Lender, shall notify such party to permit Lender free access
to such records at all reasonable times and to provide Lender with copies of any records it may request, all at Borrower’s
expense.

 

Environmental
Compliance and Reports. Borrower shall comply in all respects with any and all Environmental Laws; not cause or permit to
exist, as a result of an intentional or unintentional action or omission on Borrower’s part or on the part of any third
party, on property owned and/or occupied by Borrower, any environmental activity where damage may result to the environment, unless
such environmental activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate federal,
state or local governmental authorities; shall furnish to Lender promptly and in any event within thirty (30) days after receipt
thereof a copy of any notice, summons, lien, citation, directive, letter or other communication from any governmental agency or
instrumentality concerning any intentional or unintentional action or omission on Borrower’s part in connection with any
environmental activity whether or not there is damage to the environment and/or other natural resources.

 

Additional
Assurances. Make, execute and deliver to Lender such promissory notes, financing statements, instruments, documents and other
agreements as Lender or its attorneys may reasonably request to evidence and secure the Loans and to perfect all Security Interests.

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 3

    

 

Financial
Statements. Furnish Lender with such financial statements and any and all other information or documentation related thereto
at such frequencies and in such detail as Lender may reasonably request.

 

Tax
Returns. Furnish Lender with such tax returns, or extensions thereof, and any and all other information or documentation related
thereto at such frequencies and in such detail as Lender may reasonably request.

 

RECOVERY
OF ADDITIONAL COSTS. If the imposition of or any change in any law, rule, regulation, guideline, or generally accepted accounting
principle, or the interpretation or application of any thereof by any court, administrative or governmental authority, or standard-setting
organization (including any request or policy not having the force of law) shall impose, modify or make applicable any taxes (except
federal, state or local income or franchise taxes imposed on Lender), reserve requirements, capital adequacy requirements or other
obligations which would (A) increase the cost to Lender for extending or maintaining the credit facilities to which this Agreement
relates, (B) reduce the amounts payable to Lender under this Agreement or the Related Documents, or (C) reduce the rate of return
on Lender’s capital as a consequence of Lender’s obligations with respect to the credit facilities to which this Agreement
relates, then Borrower agrees to pay Lender such additional amounts as will compensate Lender therefor, within five (5) days after
Lender’s written demand for such payment, which demand shall be accompanied by an explanation of such imposition or charge
and a calculation in reasonable detail of the additional amounts payable by Borrower, which explanation and calculations shall
be conclusive in the absence of manifest error.

 

LENDER’S
EXPENDITURES. If Borrower fails to comply with any provision of this Agreement or any Related Documents, including but not
limited to Borrower’s failure to discharge or pay when due any amounts Borrower is required to discharge or pay under this
Agreement or any Related Documents. All such expenditures incurred or paid by Lender for such purposes will then bear interest
at the rate charged under the Note from the date incurred or paid by Lender to the date of repayment by Borrower. All such expenses
will become a part of the Indebtedness and, at Lender’s option, will (A) be payable on demand; (B) be added to the balance
of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the term of
any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be due
and payable at the Note’s maturity.

 

NEGATIVE
COVENANTS. Borrower covenants and agrees with Lender that while this Agreement is in effect, Borrower shall not, without the
prior written consent of Lender:

 

Continuity
of Operations. (1) Engage in any business activities substantially different than those in which Borrower is presently engaged,
(2) cease operations, liquidate, merge or restructure as a legal entity (whether by division or otherwise), consolidate with or
acquire any other entity, change its name, convert to another type of entity or redomesticate, or dissolve.

 

Agreements.
Enter into any agreement containing any provisions which would be violated or breached by the performance of Borrower’s
obligations under this Agreement or in connection herewith.

 

CESSATION
OF ADVANCES. If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other
agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if: (A) Borrower is in default under
the terms of this Agreement or any of the Related Documents or any other agreement that Borrower has with Lender; (B) Borrower
or any Guarantor dies, becomes incompetent or becomes insolvent, files a petition in bankruptcy or similar proceedings, or is
adjudged a bankrupt; or (C) there occurs a material adverse change in Borrower’s financial condition.

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with
Lender (whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else
and all accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts
for which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge
or setoff all sums owing on the Indebtedness against any and all such accounts.

 

DEFAULT.
Each of the following shall constitute an Event of Default under this Agreement: Payment Default. Borrower fails to
make any payment when due under the Loan.

 

Other
Defaults. Borrower fails to comply with or to perform any other term, obligation, covenant or condition contained in this
Agreement or in any of the Related Documents or to comply with or to perform any term, obligation, covenant or condition contained
in any other agreement between Lender and Borrower.

 

False
Statements. Any warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf
under this Agreement or the Related Documents is false or misleading in any material respect, either now or at the time made or
furnished or becomes false or misleading at any time thereafter.

 

Insolvency.
The dissolution or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment
of a receiver for any part of Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout,
or the commencement of any proceeding under any bankruptcy or insolvency laws by or against Borrower.

 

Creditor
or Forfeiture Proceedings. Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help,
repossession or any other method, by any creditor of Borrower or by any governmental agency against any collateral securing the
Loan. This includes a garnishment of any of Borrower’s accounts, including deposit accounts, with Lender. However, this
Event of Default shall not apply if there is a good faith dispute by Borrower as to the validity or reasonableness of the claim
which is the basis of the creditor or forfeiture proceeding and if Borrower gives Lender written notice of the creditor or forfeiture
proceeding and deposits with Lender monies or a surety bond for the creditor or forfeiture proceeding, in an amount determined
by Lender, in its sole discretion, as being an adequate reserve or bond for the dispute.

 

Change
in Ownership. Any change in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse
Change. A material adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment
or performance of the Loan is impaired.

 

Right
to Cure. If any default, other than a default on Indebtedness, is curable and if Borrower or Grantor, as the case may be,
has not been given a notice of a similar default within the preceding twelve (12) months, it may be cured if Borrower or Grantor,
as the case may be, after Lender sends written notice to Borrower or Grantor, as the case may be, demanding cure of such default:
(1) cure the default within the time set forth in the Note; or (2) if the cure requires more than the time to cure a default set
forth in the Note, immediately initiate steps which Lender deems in Lender’s sole discretion to be sufficient to cure the
default and thereafter continue and complete all reasonable and necessary steps sufficient to produce compliance as soon as reasonably
practical.

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 4

    

 

EFFECT
OF AN EVENT OF DEFAULT. If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related
Documents, all commitments and obligations of Lender under this Agreement or the Related Documents or any other agreement immediately
will terminate (including any obligation to make further Loan Advances or disbursements), and, at Lender’s option, all Indebtedness
immediately will become due and payable, all without notice of any kind to Borrower, except that in the case of an Event of Default
of the type described in the “Insolvency” subsection above, such acceleration shall be automatic and not optional.
In addition, Lender shall have all the rights and remedies provided in the Related Documents or available at law, in equity, or
otherwise. Except as may be prohibited by applicable law, all of Lender’s rights and remedies shall be cumulative and may
be exercised singularly or concurrently. Election by Lender to pursue any remedy shall not exclude pursuit of any other remedy,
and an election to make expenditures or to take action to perform an obligation of Borrower or of any Grantor shall not affect
Lender’s right to declare a default and to exercise its rights and remedies.

 

DISPUTE
RESOLUTION PROVISION. This Dispute Resolution Provision contains a jury waiver, a class action waiver, and an arbitration clause
(or judicial reference agreement, as applicable), set out in four Sections. READ IT CAREFULLY.

 

This
dispute resolution provision shall supersede and replace any prior “Jury Waiver,” “Judicial Reference,”
“Class Action Waiver,” “Arbitration,” “Dispute Resolution,” or similar alternative dispute
agreement or provision between or among the parties.

 

Notwithstanding
anything to the contrary herein, the parties acknowledge and agree that the Dispute Resolution Provision contained herein is not
enforceable at any time that the SBA is the holder of the Promissory Note which evidences the Loan.

 

SECTION
1. GENERAL PROVISIONS GOVERNING ALL DISPUTES.

 

1.1
PRIOR DISPUTE RESOLUTION AGREEMENTS SUPERSEDED. This Dispute Resolution Provision shall supersede and replace any prior”Jury
Waiver,”“Judicial Reference,”“Class Action Waiver,”“Arbitration,”“Dispute Resolution,”or
similar alternative dispute agreement or provision between or among the parties.

 

1.2
“DISPUTE”defined. As used herein, the word”Dispute ́includes, without limitation, any claim by either
party against the other party related to this Agreement, any Related Document, and the Loan evidenced hereby. In addition,”Dispute”also
includes any claim by either party against the other party regarding any other agreement or business relationship between any
of them, whether or not related to the Loan or other subject matter of this Agreement.”Dispute” ́includes,
but is not limited to, matters arising from or relating to a deposit account, an application for or denial of credit, warranties
and representations made by a party, the adequacy of a party’s disclosures, enforcement of any and all of the obligations
a party hereto may have to another party, compliance with applicable laws and/or regulations, performance or services provided
under any agreement by a party, including without limitation disputes based on or arising from any alleged tort or matters involving
the employees, officers, agents, affiliates, or assigns of a party hereto.

 

If
a third party is a party to a Dispute (such as a credit reporting agency, merchant accepting a credit card, junior lienholder
or title company), each party hereto agrees to consent to including that third party in any arbitration or judicial reference
proceeding for resolving the Dispute with that party.

 

1.3
Jury Trial Waiver. Each party waives their respective rights to a trial before a jury in connection with any Dispute,
and all Disputes shall be resolved by a judge sitting without a jury. If a court determines that this jury trial
waiver is not enforceable for any reason, then at any time prior to trial of the Dispute. but not later than 30 days after
entry of the order determining this provision is unenforceable, any party shall be entitled to move the court for an order,
as applicable: (A) compelling arbitration and staying or dismissing such litigation pending arbitration (“Arbitration Order”)
under Section 2 hereof, or (B) staying such litigation and compelling judicial reference under Section 3 hereof.

 

1.4
CLASS ACTION WAIVER. If permitted by applicable law,each party waives the right to litigate in court or an arbitration
proceeding any Dispute as a class action. either as a member of a class or as a representative. or to act as a private attorney
general.

 

1.5
SURVIVAL. This Dispute Resolution Provision shall survive any termination, amendment or expiration of this Agreement, or
any other relationship between the parties.

 

SECTION
2. Arbitration IF JURY WAIVER UNENFORCEABLE (EXCEPT CALIFORNIA). If (but only if) a state or federal court located outside
the state of California determines for any reason that the jury trial waiver in this Dispute Resolution Provision is not enforceable
with respect to a Dispute, then any party hereto may require that said Dispute be resolved by binding arbitration pursuant to
this Section 2 before a single arbitrator. An arbitrator shall have no authority to determine matters (i) regarding the validity,
enforceability, meaning, or scope of this Dispute Resolution Provision, or (ii) class action claims brought by either party as
a class representative on behalf of others and claims by a class representative on either party’s behalf as a class member,
which matters may be determined only by a court without a jury. By agreeing to arbitrate a Dispute. each party gives up
any right that party may have to a jury trial. as well as other rights that party would have in court that are not available or
are more limited in arbitration. such as the rights to discovery and to appeal.

 

Arbitration
shall be commenced by filing a petition with, and in accordance with the applicable arbitration rules of, National Arbitration
Forum (“NAF”) or Judicial Arbitration and Mediation Service, Inc. (“JAMS”) (“Administrator”)
as selected by the initiating party. However, if the parties agree, arbitration may be commenced by appointment of a licensed
attorney who is selected by the parties and who agrees to conduct the arbitration without an Administrator. If NAF and JAMS both
decline to administer arbitration of the Dispute, and if the parties are unable to mutually agree upon a licensed attorney to
act as arbitrator with an Administrator, then either party may file a lawsuit (in a court of appropriate venue outside the state
of California) and move for an Arbitration Order. The arbitrator, howsoever appointed, shall have expertise in the subject matter
of the Dispute. Venue for the arbitration proceeding shall be at a location determined by mutual agreement of the parties or,
if no agreement, in the city and state where Lender or Bank is headquartered. The arbitrator shall apply the law of the state
specified in the agreement giving rise to the Dispute.

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 5

    

 

After
entry of an Arbitration Order, the non-moving party shall commence arbitration. The moving party shall, at its discretion, also
be entitled to commence arbitration but is under no obligation to do so, and the moving party shall not in any way be adversely
prejudiced by electing not to commence arbitration. The arbitrator: (i) will hear and rule on appropriate dispositive motions
for judgment on the pleadings, for failure to state a claim, or for full or partial summary judgment; (ii) will render a decision
and any award applying applicable law; (iii) will give effect to any limitations period in determining any Dispute or defense;
(iv) shall enforce the doctrines of compulsory counterclaim, res judicata, and collateral estoppel, if applicable; (v) with regard
to motions and the arbitration hearing, shall apply rules of evidence governing civil cases; and (vi) will apply the law of the
state specified in the agreement giving rise to the Dispute. Filing of a petition for arbitration shall not prevent any party
from (i) seeking and obtaining from a court of competent jurisdiction (notwithstanding ongoing arbitration) provisional or ancillary
remedies including but not limited to injunctive relief, property preservation orders, foreclosure, eviction, attachment, replevin,
garnishment, and/or the appointment of a receiver, (ii) pursuing non-judicial foreclosure, or (iii) availing itself of any self-help
remedies such as setoff and repossession. The exercise of such rights shall not constitute a waiver of the right to submit any
Dispute to arbitration.

 

Judgment
upon an arbitration award may be entered in any court having jurisdiction except that, if the arbitration award exceeds $4,000,000,
any party shall be entitled to a de novo appeal of the award before a panel of three arbitrators. To allow for such appeal, if
the award (including Administrator, arbitrator, and attorney’s fees and costs) exceeds $4,000,000, the arbitrator will issue
a written, reasoned decision supporting the award, including a statement of authority and its application to the Dispute. A request
for de novo appeal must be filed with the arbitrator within 30 days following the date of the arbitration award; if such a request
is not made within that time period, the arbitration decision shall become final and binding. On appeal, the arbitrators shall
review the award de novo, meaning that they shall reach their own findings of fact and conclusions of law rather than deferring
in any manner to the original arbitrator. Appeal of an arbitration award shall be pursuant to the rules of the Administrator or,
if the Administrator has no such rules, then the JAMS arbitration appellate rules shall apply.

 

Arbitration
under this provision concerns a transaction involving interstate commerce and shall be governed by the Federal Arbitration Act,
9 U.S.C. § 1 et seq. If the terms of this Section 2 vary from the Administrator’s rules, this Section 2 shall control.

 

SECTION
3. JUDICIAL REFERENCE IF JURY WAIVER UNENFORCEABLE (CALIFORNIA ONLY). If (but only if) a Dispute is filed in a state or federal
court located within the state of California, and said court determines for any reason that the jury trial waiver in this Dispute
Resolution Provision is not enforceable with respect to that Dispute, then any party hereto may require that Dispute be resolved
by judicial reference in accordance with California Code of Civil Procedure, Sections 638, et seq., including without limitation
whether the Dispute is subject to a judicial reference proceeding. By agreeing to resolve Disputes by judicial reference.
each party is giving up any right that party may have to a jury trial. The referee shall be a retired judge, agreed upon
by the parties, from either the American Arbitration Association (AAA) or Judicial Arbitration and Mediation Service, Inc. (JAMS).
If the parties cannot agree on the referee, the party who initially selected the reference procedure shall request a panel of
ten retired judges from either AAA or JAMS, and the court shall select the referee from that panel. (If AAA and JAMS are unavailable
to provide this service, the court may select a referee by such other procedures as are used by that court.) The referee shall
be appointed to sit with all of the powers provided by law, including the power to hear and determine any or all of the issues
in the proceeding, whether of fact or of law, and to report a statement of decision. The parties agree that time is of the essence
in conducting the judicial reference proceeding set forth herein. The costs of the judicial reference proceeding, including the
fee for the court reporter, shall be borne equally by the parties as the costs are incurred, unless otherwise awarded by the referee.
The referee shall hear all pre-trial and post-trial matters (including without limitation requests for equitable relief), prepare
a statement of decision with written findings of fact and conclusions of law, and apportion costs as appropriate. The referee
shall be empowered to enter equitable relief as well as legal relief, provide all temporary or provisional remedies, enter equitable
orders that are binding on the parties and rule on any motion that would be authorized in a trial, including without limitation
motions for summary adjudication. Only for this Section 3, “Dispute” includes matters regarding the validity, enforceability,
meaning, or scope of this Section, and (ii) class action claims brought by either party as a class representative on behalf
of others and claims by a class representative on either party’s behalf as a class member. Judgment upon the award shall
be entered in the court in which such proceeding was commenced and all parties shall have full rights of appeal. This provision
will not be deemed to limit or constrain Bank or Lender’s right of offset, to obtain provisional or ancillary remedies,
to interplead funds in the event of a dispute, to exercise any security interest or lien Bank or Lender may hold in property or
to comply with legal process involving accounts or other property held by Bank or Lender.

 

Nothing
herein shall preclude a party from moving (prior to the court ordering judicial reference) to dismiss, stay or transfer the suit
to a forum outside California on grounds that California is an improper, inconvenient or less suitable venue. If such motion is
granted, this Section 3 shall not apply to any proceedings in the new forum.

 

This
Section 3 may be invoked only with regard to Disputes filed in state or federal courts located in the State of California. In
no event shall the provisions in this Section 3 diminish the force or effect of any venue selection or jurisdiction provision
in this Agreement or any Related Document.

 

SECTION
4. Reliance. Each party (i) certifies that no one has represented to such party that the other party would not seek to enforce
a jury waiver, class action waiver, arbitration provision or judicial reference provision in the event of suit, and (ii) acknowledges
that it and the other party have been induced to enter into this Agreement by, among other things, material reliance upon the
mutual waivers, agreements, and certifications in the four Sections of this DISPUTE RESOLUTION PROVISION.

 

SCOPE
OF AGREEMENT. Except as provided in the Section of this Agreement entitled “Dispute Resolution” (including the
jury waiver, arbitration, and class action waiver provisions), this Agreement shall not be interpreted to supersede or amend any
other credit agreement between Borrower and Lender.

 

MULTIPLE
LOAN AGREEMENTS (INDEPENDENT LOAN AGREEMENTS). Borrower and Lender acknowledge that Borrower may have more than one outstanding
loan with Lender, and may be granted additional loans by Lender in the future. Borrower and Lender agree that (a) the loan agreement
executed in connection with each loan shall govern that particular loan; (b) execution or amendment of a loan agreement for one
loan shall not be interpreted to supersede or amend any loan agreement previously executed in connection with another loan; and
(c) any present or future loan for which no separate loan agreement is executed shall always be governed by the most recently
executed loan agreement then outstanding between Borrower and Lender, whether executed before or after the granting of said loan.
This section shall not diminish any cross-default term in any loan agreement, promissory note or related loan document. (This
section supersedes any contrary provision in this Agreement.)

 

Notwithstanding
the preceding paragraph of this section, every loan agreement between Borrower and Lender (together with all related loan documents
associated therewith) shall be deemed amended to adopt the dispute resolution provisions that are now or hereafter set forth in
the most recently executed loan agreement. In this paragraph, “dispute resolution provision” includes any provision,
or omission thereof, in the nature of a class action waiver, a jury trial waiver, or alternative dispute resolution term (such
as resolution by arbitration or judicial reference).

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 6

    

 

REPLACEMENT
DEFINITION OF “LOAN”. The definition of “Loan” in the Definitions section of this Agreement is hereby
deleted. The word “Loan”, when capitalized, shall have the following meaning:

 

(a)
the Note (if any) identified in the Definitions section of this Agreement,

 

(b)
any other present or future promissory note or credit agreement that is identified in that instrument or in this Agreement as
being subject to this Business Loan Agreement;

 

(c)
the specific loan or other financial accommodation now or hereafter made by Lender to Borrower in consideration of, among other
things, Borrower executing this Business Loan Agreement

 

(d)
any other present or future promissory note or credit agreement that is made subject to this Business Loan Agreement pursuant
to the section herein entitled “Multiple Loan Agreements (independent loan agreements)”; and

 

(e)
the Borrower’s liabilities and obligations arising under the Related Documents associated with any of the foregoing.

 

UNLAWFUL
USE MARIJUANA, CONTROLLED SUBSTANCES AND PROHIBITED ACTIVITIES. The undersigned shall not use, occupy, or permit the use or
occupancy of any Property or Collateral by the undersigned or any lessee, tenant, licensee, permitee, agent, or any other person
in any manner that would be a violation of any applicable federal, state or local law or regulation, regardless of whether such
use or occupancy is lawful under any conflicting law, including without limitation any law relating to the use, sale, possession,
cultivation, manufacture, distribution or marketing of any controlled substances or other contraband (whether for commercial,
medical, or personal purposes), or any law relating to the use or distribution of marijuana (collectively, “Prohibited Activities”).
Any lease, license, sublease or other agreement for use, occupancy or possession of any Property or Collateral (collectively a
“lease”) with any third person (“lessee”) shall expressly prohibit the lessee from engaging or permitting
others to engage in any Prohibited Activities. The undersigned shall upon demand provide Lender with a written statement setting
forth its compliance with this section and stating whether any Prohibited Activities are or may be occurring in, on or around
the Property or Collateral. If the undersigned becomes aware that any lessee is likely engaged in any Prohibited Activities, The
undersigned shall, in compliance with applicable law, terminate the applicable lease and take all actions permitted by law to
discontinue such activities. The undersigned shall keep Lender fully advised of its actions and plans to comply with this section
and to prevent Prohibited Activities.

 

This
section is a material consideration and inducement upon which Lender relies in extending credit and other financial accommodations
to the undersigned. Failure by the undersigned to comply with this section shall constitute a material non-curable Event of Default.
Notwithstanding anything in this agreement, the Note or Related Documents regarding rights to cure Events of Default, Lender is
entitled upon breach of this section to immediately exercise any and all remedies under this agreement, the Note the Related Documents,
and by law.

 

In
addition and not by way of limitation, the undersigned shall indemnify, defend and hold Lender harmless from and against any loss,
claim, damage, liability, fine, penalty, cost or expense (including attorneys’ fees and expenses) arising from, out of or
related to any Prohibited Activities at or on the Property or Collateral, Prohibited Activities by the undersigned or any lessee
of the Property or Collateral, or the undersigned’s breach, violation, or failure to enforce or comply with any of the covenants
set forth in this section. This indemnity includes, without limitation any claim by any governmental entity or agency, any lessee,
or any third person, including any governmental action for seizure or forfeiture of any Property or Collateral (with or without
compensation to Lender, and whether or not Property or Collateral is taken free of or subject to Lender’s lien or security
interest). As used in this section, the word “undersigned” does not include Lender or any individual signing on behalf
of Lender.

 

COMPLIANCE
CERTIFICATES. At such intervals and in such format as Lender may designate from time to time, Borrower shall provide Lender
with written certification by Borrower and its attesting principal financial or accounting officer: that all of Borrower’s
representations and warranties under this Agreement continue to be true, accurate and complete in all material respects; that
Borrower is in compliance with all of its affirmative covenants, negative covenants, financial covenants, reporting covenants,
and other covenants in this Agreement; that the information in all financial statements Borrower has submitted to Lender, and
the computations provided with Borrower’s current and prior certificates accurately represent Borrower’s financial
position as of the dates thereof; that Borrower’s submitted financial statements were prepared in accordance with generally
accepted accounting principles (except as otherwise disclosed therein); that no event has occurred and no condition exists that
constitutes (or with the passage of time and giving of any necessary notice would constitute) an Event of Default under this Agreement.

 

CREATION
OF TRUSTS, AND TRANSFERS TO TRUSTS. This paragraph shall apply in instances where this Agreement is governed by Utah law.
Neither Borrower nor any Guarantor shall create as settlor any trust, or transfer any assets into any trust, without giving written
notice to Lender at least ninety (90) days prior to such creation or transfer. That notice shall describe in reasonable detail
the trust to be created and/or the asset transfer to be made. Failure by any such settlor to provide that notice shall be an event
of default under this instrument and the Loan.

 

Neither
Borrower nor any Guarantor shall create as settlor any actual or purported spendthrift trust, asset protection trust or any other
trust intended by its terms or purpose (or having the effect) to protect assets from creditors or to limit the rights of existing
or future creditors (an “Asset Protection Trust”) without the prior written consent of Lender. Lender may withhold
that consent in its sole discretion. Creation of any Asset Protection Trust, and each transfer of assets thereto, by any such
settlor without Lender’s prior written consent:

 

(a)
shall be an event of default under this instrument and the Loan,

 

(b)
shall have the effect of, and shall be deemed as a matter of law, regardless of that settlor’s solvency, of having been
made by that settlor with the actual intent of hindering and delaying and defrauding Lender as that settlor’s creditor,
and

 

(c)
shall constitute a fraudulent transfer that is unenforceable and void (not merely voidable) as against Lender.

 

With
respect to each such fraudulent transfer, Lender shall have all the rights and remedies provided by state fraudulent transfer
laws, or otherwise provided at law or equity. Lender shall have the right to obtain an ex parte court order directing the trustee
of the Asset Protection Trust to give Lender written notice a reasonable time (of no less than ten business days) prior to making
any distribution from said trust. Nothing in this paragraph shall limit or affect any rights or remedies otherwise provided to
Lender by law, equity or any contract.

 

DOCUMENT
IMAGING. Lender shall be entitled, in its sole discretion, to image or make copies of all or any selection of the agreements,
instruments, documents, and items and records governing, arising from or relating to any of Borrower’s loans, including,
without limitation, this document and the Related Documents, and Lender may destroy or archive the paper originals. The parties
hereto (i) waive any right to insist or require that Lender produce paper originals, (ii) agree that such images shall be accorded
the same force and effect as the paper originals, (iii) agree that Lender is entitled to use such images in lieu of destroyed
or archived originals for any purpose, including as admissible evidence in any demand, presentment or other proceedings, and (iv)
further agree that any executed facsimile (faxed), scanned, or other imaged copy of this document or any Related Document shall
be deemed to be of the same force and effect as the original manually executed document.

 

ADDITIONAL
BORROWER CERTIFICATIONS AND AGREEMENTS. Borrower certifies that (a) Borrower acknowledges that if Borrower defaults on the
loan, SBA may be required to pay Lender under the SBA guarantees, and SBA may then seek recovery on the loan (to the extent any
balance remains after loan forgiveness); (b) Borrower will keep books and records in a manner satisfactory to Lender, furnish
financial statements as requested by Lender, and allow Lender and SBA to inspect and audit books, records and papers relating
to Borrower’s financial or business condition; and (c) Borrower will not, without Lender’s consent, change its ownership
structure, make any distribution of company assets that would adversely affect its financial condition, or transfer (including
pledging) or dispose of any assets, except in the ordinary course of business.

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 7

    

 

WAIVER
OF DEFENSES AND RELEASE OF CLAIMS. The undersigned hereby (i) represents that neither the undersigned nor any affiliate or principal
of the undersigned has any defenses to or setoffs against any Indebtedness or other obligations owing by the undersigned, or by
the undersigned’s affiliates or principals, to Lender or Lender’s affiliates (the “Obligations”), nor
any claims against Lender or Lender’s affiliates for any matter whatsoever, related or unrelated to the Obligations, and
(ii) releases Lender and Lender’s affiliates, officers, directors, employees and agents from all claims, causes of action,
and costs, in law or equity, known or unknown, whether or not matured or contingent, existing as of the date hereof that the undersigned
has or may have by reason of any matter of any conceivable kind or character whatsoever, related or unrelated to the Obligations,
including the subject matter of this Agreement. The foregoing release does not apply, however, to claims for future performance
of express contractual obligations that mature after the date hereof that are owing to the undersigned by Lender or Lender’s
affiliates. As used in this paragraph, the word “undersigned” does not include Lender or any individual signing on
behalf of Lender. The undersigned acknowledges that Lender has been induced to enter into or continue the Obligations by, among
other things, the waivers and releases in this paragraph.

 

ON-LINE
BANKING — ADVANCES. From time to time, Lender may (but shall not be required to) permit advances to be requested or
drawn through its online banking website. Lender may impose and change limitations on online advance requests, such as minimum
or maximum advance dollar amounts, and the types of accounts into which advances may be transferred. Whether online advances are
permitted, and Lender’s applicable terms and restrictions if such advances are permitted, will be reflected in the features
available online when a user logs into the online banking website.

 

ON-LINE
BANKING — LOAN PAYMENTS. From time to time, Lender may (but shall not be required to) permit loan payments to be made
through its online banking website. Lender may impose and change limitations on making online loan payments, such as minimum or
maximum payment amounts, the types of accounts from which loan payments may be made, and the types of payments that may be made
online (i.e., ordinary installment payments, principal-only payments, or other types of payments). Whether online payments are
permitted, and Lender’s applicable terms and restrictions if such payments are permitted, will be reflected in the features
available online when a user logs into the online banking website.

 

BENEFICIAL
OWNERSHIP. Borrower agrees to promptly notify Lender (A) of any change in direct or indirect ownership interests in the Borrower
as reported in any beneficial ownership certification provided to Lender in connection with the execution of this Agreement or
the Loan (the “Certification”), or (B) if the individual with significant managerial responsibility identified in
the Certification ceases to have that responsibility or if the information reported about that individual changes. Borrower hereby
agrees to provide such information and documentation as Lender may request during the term of the Loan to confirm or update the
continued accuracy of the any information provided in connection with the foregoing.

 

LOAN
FORGIVENESS UNDER THE PAYCHECK PROTECTION PROGRAM. Loan forgiveness of any portion of the Loan shall be subject to all requirements
of the CARES Act. In order for Borrower to receive any loan forgiveness, Borrower’s request for loan forgiveness must include
the following: (a) documentation verifying the number of full-time equivalent employees on payroll and pay rates for the required
period, including payroll tax filings reported to the IRS and state income, payroll and unemployment insurance filings; (b) documentation,
including cancelled checks, payment receipts, transcripts of accounts, or other documents verifying payments on covered mortgage
obligations, payments on covered lease obligations, and covered utility payments; (c) a certification from an authorized representative
of the Borrower that the documentation presented is true and correct, and the amount for which forgiveness is requested was used
to retain employees, make interest payments on a covered mortgage obligation, make payments on a covered rent obligation or make
covered utility payments; and (d) any other documentation SBA determines necessary. If Borrower received an EIDL advance, the
amount of the EIDL advance shall be deducted from the loan forgiveness amount.

 

MISCELLANEOUS
PROVISIONS. The following miscellaneous provisions are a part of this Agreement:

 

Amendments.
This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the
matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing
and signed by the party or parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’
Fees; Expenses. Borrower agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s reasonable
attorneys’ fees and Lender’s legal expenses, incurred in connection with the enforcement of this Agreement. Lender
may hire or pay someone else to help enforce this Agreement, and Borrower shall pay the costs and expenses of such enforcement.
Costs and expenses include Lender’s reasonable attorneys’ fees and legal expenses whether or not Lender’s salaried
employee and whether or not there is a lawsuit, including reasonable attorneys’ fees and legal expenses for bankruptcy proceedings
(including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection
services. Borrower also shall pay all court costs and such additional fees as may be directed by the court.

 

Caption
Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define
the provisions of this Agreement.

 

Consent
to Loan Participation. Borrower agrees and consents to Lender’s sale or transfer, whether now or later, of one or more
participation interests in the Loan to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without
any limitation whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have
about Borrower or about any other matter relating to the Loan, and Borrower hereby waives any rights to privacy Borrower may have
with respect to such matters. Borrower additionally waives any and all notices of sale of participation interests, as well as
all notices of any repurchase of such participation interests. Borrower also agrees that the purchasers of any such participation
interests will be considered as the absolute owners of such interests in the Loan and will have all the rights granted under the
participation agreement or agreements governing the sale of such participation interests. Borrower further waives all rights of
offset or counterclaim that it may have now or later against Lender or against any purchaser of such a participation interest
and unconditionally agrees that either Lender or such purchaser may enforce Borrower’s obligation under the Loan irrespective
of the failure or insolvency of any holder of any interest in the Loan. Borrower further agrees that the purchaser of any such
participation interests may enforce its interests irrespective of any personal claims or defenses that Borrower may have against
Lender.

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 8

    

 

Applicable
Law. The Loan secured by this lien was made under a United States Small Business Administration (SBA) nationwide program which
uses tax dollars to assist small business owners. If the United States is seeking to enforce this document, then under SBA regulations:
(a) When SBA is the holder of the Note, this document and all documents evidencing or securing this Loan will be construed in
accordance with federal law. (b) Lender or SBA may use local or state procedures for purposes such as filing papers, recording
documents, giving notice, foreclosing liens, and other purposes. By using these procedures, SBA does not waive any federal immunity
from local or state control, penalty, tax or liability. No Borrower or Guarantor may claim or assert against SBA any local or
state law to deny any obligation of Borrower, or defeat any claim of SBA with respect to this Loan. (c) Any clause in this document
requiring arbitration is not enforceable when SBA is the holder of the Note secured by this instrument.

 

No
Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in
writing and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of
such right or any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver
of Lender’s right otherwise to demand strict compliance with that provision or any other provision of this Agreement. No
prior waiver by Lender, nor any course of dealing between Lender and Borrower, or between Lender and any Grantor, shall constitute
a waiver of any of Lender’s rights or of any of Borrower’s or any Grantor’s obligations as to any future transactions.
Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall
not constitute continuing consent to subsequent instances where such consent is required and in all cases such consent may be
granted or withheld in the sole discretion of Lender.

 

Notices.
Unless otherwise provided by applicable law, any notice required to be given under this Agreement or required by law shall be
given in writing, and shall be effective when actually delivered in accordance with the law or with this Agreement, when actually
received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or,
if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to
the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by
giving formal written notice to the other parties, specifying that the purpose of the notice is to change the party’s address.
For notice purposes, Borrower agrees to keep Lender informed at all times of Borrower’s current address. Unless otherwise
provided by applicable law, if there is more than one Borrower, any notice given by Lender to any Borrower is deemed to be notice
given to all Borrowers.

 

Severability.
if a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any
circumstance, that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance.
if feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. if the offending
provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of
any other provision of this Agreement.

 

Subsidiaries
and Affiliates of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including
without limitation any representation, warranty or covenant, the word “Borrower” as used in this Agreement shall include
all of Borrower’s subsidiaries and affiliates. Notwithstanding the foregoing however, under no circumstances shall this
Agreement be construed to require Lender to make any Loan or other financial accommodation to any of Borrower’s subsidiaries
or affiliates.

 

Successors
and Assigns. All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents
shall bind Borrower’s successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Borrower
shall not, however, have the right to assign Borrower’s rights under this Agreement or any interest therein, without the
prior written consent of Lender.

 

Survival
of Representations and Warranties. Borrower understands and agrees that in making the Loan, Lender is relying on all representations,
warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to
Lender under this Agreement or the Related Documents. Borrower further agrees that regardless of any investigation made by Lender,
all such representations, warranties and covenants will survive the making of the Loan and delivery to Lender of the Related Documents,
shall be continuing in nature, and shall remain in full force and effect until such time as Borrower’s indebtedness shall
be paid in full, or until this Agreement shall be terminated in the manner provided above, whichever is the last to occur.

 

Time
is of the Essence. Time is of the essence in the performance of this Agreement.

 

DEFINITIONS.
The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated
to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and
terms used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words
and terms not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code.
Accounting words and terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with
generally accepted accounting principles as in effect on the date of this Agreement:

 

Advance.
The word “Advance” means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower’s behalf
on a line of credit or multiple advance basis under the terms and conditions of this Agreement.

 

Agreement.
The word “Agreement” means this Business Loan Agreement, as this Business Loan Agreement may be amended or modified
from time to time, together with all exhibits and schedules attached to this Business Loan Agreement from time to time.

 

Borrower.
The word “Borrower” means Verb Technology Company, Inc. and includes all co-signers and co-makers signing the Note
and all their successors and assigns.

 

Environmental
Laws. The words “Environmental Laws” mean any and all state, federal and local statutes, regulations and ordinances
relating to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response,
Compensation, and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”), the Superfund Amendments
and Reauthorization Act of 1986, Pub. L. No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C.
Section 1801, et seq., the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state
or federal laws, rules, or regulations adopted pursuant thereto.

 

    	 	 	 

    	 	BUSINESS LOAN AGREEMENT
(Continued)
	Page 9

    

 

Event
of Default. The words “Event of Default” mean any of the events of default set forth in this Agreement in the
default section of this Agreement.

 

GAAP.
The word “GAAP” means generally accepted accounting principles.

 

Hazardous
Substances. The words “Hazardous Substances” mean materials that, because of their quantity, concentration or
physical, chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment
when improperly used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words “Hazardous
Substances” are used in their very broadest sense and include without limitation any and all hazardous or toxic substances,
materials or waste as defined by or listed under the Environmental Laws. The term “Hazardous Substances” also includes,
without limitation, petroleum and petroleum by-products or any fraction thereof and asbestos.

 

Indebtedness.
The word “Indebtedness” means and includes without limitation all Loans, together with all other obligations, debts
and liabilities of Borrower to Lender, or any one or more of them, as well as all claims by Lender against Borrower, or any one
or more of them; whether now or hereafter existing, voluntary or involuntary, due or not due, absolute or contingent, liquidated
or unliquidated; whether Borrower may be liable individually or jointly with others; whether Borrower may be obligated as a guarantor,
surety, or otherwise; whether recovery upon such indebtedness may be or hereafter may become barred by any statute of limitations;
and whether such indebtedness may be or hereafter may become otherwise unenforceable.

 

Lender.
The word “Lender” means Zions Bancorporation, N.A. dba Zions First National Bank, its successors and assigns.

 

Loan.
The word “Loan” means the loans and financial accommodations from Lender to Borrower made under the SBA Paycheck Protection
Program, including without limitation the loan and financial accommodations described herein.

 

Note.
The word “Note” means the Note dated April 17, 2020 and executed by Verb Technology Company, Inc. in the principal
amount of $1,217,500.00, together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and
substitutions for the note or credit agreement.

 

Permitted
Liens. The words “Permitted Liens” mean (1) liens and security interests securing Indebtedness owed by Borrower
to Lender; (2) liens for taxes, assessments, or similar charges either not yet due or being contested in good faith; (3) liens
of materialmen, mechanics, warehousemen, or carriers, or other like liens arising in the ordinary course of business and securing
obligations which are not yet delinquent; (4) purchase money liens or purchase money security interests upon or in any property
acquired or held by Borrower in the ordinary course of business to secure indebtedness outstanding on the date of this Agreement
or permitted to be incurred under the paragraph of this Agreement titled “Indebtedness and Liens”; (5) liens and security
interests which, as of the date of this Agreement, have been disclosed to and approved by the Lender in writing; and (6) those
liens and security interests which in the aggregate constitute an immaterial and insignificant monetary amount with respect to
the net value of Borrower’s assets.

 

Related
Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements, Paycheck
Protection Program Application forms, other application forms, and all other instruments, agreements and documents, whether now
or hereafter existing, executed in connection with the Loan.

 

FINAL
AGREEMENT. Borrower understands that this Agreement and the related loan documents are the final expression of the agreement
between Lender and Borrower and may not be contradicted by evidence of any alleged oral agreement.

 

BORROWER
ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS LOAN
AGREEMENT IS DATED April 17, 2020.

 

	BORROWER:	 
	 	 
	VERB TECHNOLOGY
    COMPANY, INC.	 
	 	 	 
	By:	/s/
    Jeff Clayborne	 
	 	Jeff
    Clayborne, Official of Verb Technology Company, Inc.	 

 

	LENDER:	 
	 	 
	ZIONS
    BANCORPORATION, N.A. DBA ZIONS FIRST NATIONAL BANK	 
	 	 	 
	x	/s/
    Jeff Pero	 
		Authorized
    Signer	 

 

    	 	 	 

    	 	 	 

    

 

DISBURSEMENT
REQUEST AND AUTHORIZATION

 

	Principal

                                                                                $1,217,500.00
	Loan Date 04-17-2020	Maturity 04-17-2022	CL Transaction No	Product

                                                                                SBA Paycheck Protection
	Loan Account No

 

 

References
in the boxes above are for Lender’s use only and do not limit the applicability of this document to any particular loan
or item.

Any item above containing “‘‘‘“ has been omitted due to text length limitations.

 

	Corporation:	Verb
        Technology Company, Inc.

        2210
        Newport Blvd. Suite 200

        Newport
        Beach, CA 92663
	Lender:	Zions
        Bancorporation, N.A. dba Zions First National Bank

        Centralized
        Underwriting Servicing

        One
        South Main Street

        Salt
        Lake City, UT 84133

 

 

LOAN
TYPE. This is a Fixed Rate (1.000%) Nondisclosable Loan to a Corporation for $1,217,500.00 due on April 17, 2022.

 

PRIMARY
PURPOSE OF LOAN. The primary purpose of this loan is for:

 

[  ]
Personal, Family, or Household Purposes or Personal Investment.

 

[  ]
Business (Including Real Estate Investment).

 

DISBURSEMENT
INSTRUCTIONS. Borrower understands that no loan proceeds will be disbursed until all of Lender’s conditions for making
the loan have been satisfied. Please disburse the loan proceeds of $1,217,500.00 as follows:

 

	Amount paid to Borrower directly:	 	$	1,217,500.00	 
	$1,217,500.00 Deposited to DDA Account # 982352304	 	 	 	 
	 	 	 	 	 
	Note Principal:	 	$	1,217,500.00	 

 

FINAL
AGREEMENT. Borrower understands that the loan documents signed in connection with this loan are the final expression of the
agreement between Lender and Borrower and may not be contradicted by evidence of any alleged oral agreement.

 

ERRORS
AND OMISSIONS. Borrower hereby agrees that it will, within ten (10) days of a request by Lender, comply with any request by
Lender to correct documentation errors, omissions or oversights, if any, that occur in any documentation relating to this loan.

 

ADDITIONAL
DISBURSEMENT. Notwithstanding the amount stated in the DISBURSEMENT INSTRUCTIONS paragraph above, Borrower agrees that Lender
may disburse, and hereby instructs Lender to disburse, any and all amounts in excess of the above-stated amount which are attributable
to accrued and unpaid interest on any loan(s) being paid with the disbursement proceeds arising between the date in which this
Disbursement Request is prepared by Lender and the date the loan is funded. Borrower agrees that Lender’s calculation of
such accrued interest is binding, and Borrower may request from Lender, in writing, a copy of a statement indicating the excess
accrued and unpaid interest payable and the per diem associated therewith.

 

REPLACEMENT
OF PRIMARY PURPOSE OF LOAN. The section above titled “PRIMARY PURPOSE OF LOAN” is hereby deleted and replaced with
the following:

 

PRIMARY
PURPOSE OF LOAN. The amount paid to Borrower referenced above in the “DISBURSEMENT INSTRUCTIONS” shall
be used for the following business purpose: for Payroll Costs and Payments on Mortgage Interest, Rent, Utilities and Interest
on Other Debt Obligations (At least 75% of this amount shall be used for Payroll Costs).

 

FINANCIAL
CONDITION. BY SIGNING THIS AUTHORIZATION, BORROWER REPRESENTS AND WARRANTS TO LENDER THAT THE INFORMATION PROVIDED ABOVE IS TRUE
AND CORRECT AND THAT THERE HAS BEEN NO MATERIAL ADVERSE CHANGE IN BORROWER’S FINANCIAL CONDITION AS DISCLOSED IN BORROWER’S
MOST RECENT FINANCIAL STATEMENT TO LENDER. THIS AUTHORIZATION IS DATED APRIL 17, 2020.

 

	BORROWER:	 
	 	 
	VERB TECHNOLOGY
    COMPANY, INC.	 
	 	 	 
	By:	/s/
    Jeff Clayborne	 
	 	Jeff
    Clayborne, Official of Verb Technology Company, Inc.

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