Document:

Exhibit 10.11

 

Page: 1 Deal Application ID : 21988

 

Powered By

Libertas Funding LLC

382 Greenwich Avenue Suite 2 Second Floor Greenwich
CT

 

FUTURE RECEIVABLES SALE AGREEMENT

 

This FUTURE RECEIVABLES SALE AGREEMENT (“Agreement”)
dated 8/4/2017, is made by and between Libertas Funding LLC, a Delaware limited liability company (“Purchaser”), Merchant
(Merchant Information below), and the Guarantor(s)/Owner(s), as identified in the Owner/Guarantor Information below.

 

	MERCHANT INFORMATION	 
	Merchant Legal Name: M G CLEANERS, LLC	DBA Name:
	Entity Type: LLC	FEIN: 203175973
	State of Incorp.: TX	Bank Name:
	Address: 442 E Sabine Street , CARTHAGE, TX, 75633	Phone: 

 

OWNER/GUARANTOR INFORMATION (referred to individually or collectively
as the “Owner”) 

 

Name of Owner/Guarantor(1): Stephen Christian Cell Phone:
   Home Phone:

 

Home Address:           %
Ownership: 100

 

Social Security #: Driver's License #: State :

 

	Amount Sold	 	$67,100.00	 	The dollar value of the Future Receivables
	Discount Factor	 	1.220	 	The risk adjustment to the Amount Sold that determines the Futures Receivables Discount
	Future Receivable Discount	 	$12,100.00	 	The difference in value between the Purchase Price and the Amount Sold
	Purchase Price	 	$55,000.00	 	The dollar amount Purchaser is paying for the Amount Sold.
	Due Diligence Price Adjustment 7.0%	 	$3,850.00	 	Additional discount given to Purchaser for due diligence.
	Direct Payments to Third Parties	 	$0	 	Paid to Other Funders.
	Total Amount Sent to Merchant	 	$51,150.00	 	Net of Discount and Direct Payments to 3rd Parties:
	Specified Percentage	 	20%	 	Percentage of Future Receivables to be remitted to purchaser on a daily basis
	Estimated Average Monthly Future Receivables	 	233,899.33	 	Future Receivables Expected Per Month based on detailed analysis of Merchant’s business and attestation from Merchant
	Expected daily Remittance	 	$798.81	 	Estimated Average Monthly Receivables Multiplied by Specified Percentage Divided by Number Working Days in Month (21)
	Early Remittance Discount	 	None	 	Discount Paid to Merchant for remitting Future Receivables Early
	Remittance Choice	 	ACH	 	Remittance can occur via ACH, Credit Card Split or Lockbox

 

Note: The bold type terms in the tables above and below shall
constitute defined terms with respect to this Agreement.

 

PLEASE NOTE THAT THE PURCHASER WILL NOT REMIT MORE THAN THE EXPECTED
DAILY REMITTANCE PER DAY WITHOUT THE CONSENT OF THE MERCHANT.

 

As explained in more detail in the Terms and Conditions stated hereinafter,
Merchant will be in default of this Agreement if Merchant does or causes to be done any of the following during the term of this
Agreement (see below, including but not limited to paragraph 8 and 10 for a list of the all of the events of default):

 

		·	Change or close Merchant’s bank account

		·	Change (or add a) credit card processors

		·	Block Purchaser ACH access to Merchant’s bank account

		·	Sell Merchant’s business prior to full remittance
of Future Receivables above

		·	Disconnect Purchaser's bank monitoring software

		·	Retain a third-party debt consolidator to negotiate a change
to the terms and conditions of this Agreement

 

PURCHASE AMOUNT DISCOUNTS AND REFUNDS. The following terms
are additional costs, fees or refunds that may be incurred in connection with this Agreement upon certain circumstances, as set
forth below:

 

		a.	Returned Item Refund - $35.00 Applicable in a circumstance in which Merchant has not agreed with Purchaser to
a change in the Remittance Amount and does not have sufficient collected receivable funds in its Account to remit to Purchaser
the agreed Remittance Amount. Upon the fourth Returned Item Refund imposed under this section, Merchant shall be deemed in Breach
under the Agreement.

 

     

     

    

 

Page: 2 Deal Application ID : 21988

 

		b.	Blocked Account Refund - $100.00 Applicable in a circumstance in which Merchant BLOCKS its Account from Purchasers
debit ACH or changes its designated Account cutting off Purchaser from obtaining delivery of the agreed Remittance Amount. This
action places Merchant in Breach under the Agreement.

 

		c.	Breach Refund: $2,500.00 In the event of a breach of this Agreement,this amount will be added to the total amount
to be remitted by the Merchant, effectively providing a breach-based discount to the Purchaser.

 

TERMS AND CONDITIONS IN ADDITION TO THE ABOVE TERMS:

 

		1.	Sale. In consideration of the payment of the Purchase Price specified above, Purchaser purchases from Merchant, and
Merchant sells to Purchaser, the Specified Percentage of Merchant's future accounts, contract rights and any other obligations
arising from or relating to the payment of monies from Merchant’s customers and/or other third-party payers including payments
made by cash, check, electronic transfer or other form of monetary payment to Merchant in the ordinary course of the Merchant’s
business, or otherwise, for the payment of Merchant’s sale of goods or services (“ACH Receivables”). Such payment
of monies shall include the use by Merchant's customers of any Payment Device (as defined herein) to purchase Merchant's products
and/or services that are processed by Merchants' card processor anytime during which the Amount Sold is outstanding (“Credit
Card Receivables”, ACH Receivables and Credit Card Receivables are hereafter collectively or independently referred to as
“Future Receivables”). Payment Device includes credit cards, charge cards, debit cards, prepaid cards, benefit cards,
or any other type of payment card as well as any virtual payment card or any electronic payment device. Merchant agrees to remit
to Purchaser in accordance with the terms of this Agreement the Daily Percentage of the Future Receivables specified above until
the Amount Sold has been forwarded to Purchaser. Purchaser purchases the Future Receivables free and clear of all claims, liens
or encumbrances of any kind whatsoever. Merchant agrees that this Agreement applies to Merchant's entire right, title and interest
in the Future Receivables up to the Amount Sold. The terms and conditions of this Agreement shall remain in full force and effect
until the Amount Sold has been delivered to Purchaser subject to the terms of this Agreement. Merchant and Purchaser agree that
this sale and purchase is final and Merchant has no right to repurchase or resell the Future Receivables or any portion thereof.
Merchant, any individual signing this agreement and Purchaser (each individually referred to herein as “Party” and
collectively referred to herein as “Parties”) agree that the Purchase Price paid to Merchant is the price paid to purchase
Merchant's Future Receivables and that the transaction contemplated by this Agreement is a purchase and sale of the Future Receivables.
The Parties hereby agree that the transaction contemplated by this Agreement is not a loan, a forbearance of money lent or any
similar loan or lending transaction. Merchant understands, agrees and represents that this transaction is made for business or
commercial purposes only.

 

		2.	Remittance of Amount Sold. The Merchant hereby agrees to deliver the Amount Sold to the Purchaser as (i) the Expected
Daily Remittance (based on a Specified Percentage) of Future Receivables by debiting, via ACH transaction, Merchant’s bank
account (a “Direct Debit”). Purchaser, in its sole discretion, shall choose whether to receive the Amount Sold from
the Merchant either by Direct Split or Direct Debit, (ii) as a Specified Percentage of daily amount of Credit Card Receivables
directly from Merchant’s card processor (“Credit Card Split”) or (iii) daily amount of Future Receivables directly
through a Lockbox arrangement “Lockbox”); or Purchaser may, in its sole discretion, upon written notice to Merchant,
change the method by which it will accept the remittance of the Amount Sold, and provide the Merchant with updated remittance instructions.
The following details each remittance type:

 

		a.	If Purchaser chooses to receive the remittance of the Amount Sold via a Direct Debit as the Expected Daily Remittance (based
on a Specified Percentage) then Merchant agrees as follows:

 

		1.	Bank Account. Merchant shall deposit all of Merchant’s Future Receivables into a bank account approved by Purchaser
(the “Account”).

 

		2.	Automated Clearinghouse for Expected Daily Remittance. The Merchant hereby authorizes Purchaser and its agents to initiate
Automated Clearinghouse (“ACH”) payments equal to the Expected Daily Remittance of all deposits made into the Account
each business day until the Purchaser has received Future Receivables equal to the Amount Sold.

 

		3.	Merchant to Maintain the Account. Merchant understands that it is responsible for ensuring that the Expected Daily Amount
to be debited by Purchaser remains in the Account and will be held responsible for any fees incurred by Purchaser resulting from
a rejected ACH attempt or an Event of Default (as defined herein).

 

		4.	Overdraft or Rejected Transactions the Responsibility of Merchant. The Purchaser is not responsible for any overdrafts
or rejected transactions that may result from Purchaser ACH debiting the Expected Daily Remittance Amount.

 

		5.	Agreed Changes to the Expected Daily Remittance Amount. Unless mutually agreed, in writing, and only based on
a documented change in the Merchant’s Future Receivables, Purchaser will continue to pull the Expected Daily Remittance amount.
However, if Merchant provides written evidence, in the form of a complete set of invoices (or its equivalent), or natural
events that have changed or impaired the Merchant’s ability to generate Future Receivables, and only with ongoing electronic
surveillance, the Purchaser will agree to adjust the amount of the Expected Daily Remittance. It is the Merchant’s
responsibility to communicate this at least one week in advance of a requested change and to cooperate with the Purchaser in good
faith.

 

		6.	ACH authorization. The Merchant shall provide all necessary ACH authorizations to the Purchaser as set forth in Appendix
A to this Agreement.

 

     

     

    

 

Page: 3 Deal
Application ID : 21988

  

		b.	If Purchaser chooses to accept the remittance of the Specified Percentage of the Amount Sold through Credit Card Split, Merchant
will enter into an agreement with a card processor (“Processor”) acceptable to Purchaser, and authorize Processor to
pay the Specified Percentage directly to Purchaser until Purchaser receives the total Amount Sold. Merchant acknowledges that Processor
will be acting on behalf of Purchaser to collect the Specified Percentage. Merchant irrevocably grants Processor the right to hold
the Specified Percentage and to pay Purchaser directly (at, before or after the time Processor credits or remits to Merchant the
balance of the Amount Sold not sold by Merchant to Purchaser) until Purchaser receives the entire Amount Sold. Processor may provide
Purchaser with all information Purchaser deems pertinent. Merchant agrees to hold Purchaser harmless for the Processor’s
actions or omissions.

 

		c.	If Purchaser chooses to accept the remittance through a Lockbox, Purchaser is authorized by Merchant to receive remittance
to a specified bank account (“Lockbox”) directly from the Merchant's Processor as well as Merchant’s invoiced
customers (the “Merchant’s Counterparties”). This Authorization shall continue until the Purchaser has received
an amount equal to the Purchased Amount, plus any additional remittance required. Merchant further authorizes the Merchant’s
Counterparties to provide to the Purchaser and its agents all information necessary to Purchaser to determine the amount to be
paid to the Merchant and initiate such ACH payments to the Specified Account. Upon receipt of each ACH transfer into the Lockbox,
Purchase will retain the Specified Percentage as well as the required minimum balance for the Lockbox (the “Required Minimum
Balance”). Purchaser will ACH transfer the difference between the received funds and the retained funds plus the minimum
balance into the Account.

 

		3.	Electronic Surveillance of Account. Merchant will provide Purchaser with ongoing anonymous electronic surveillance on
a daily basis for the entire period during which this Agreement is in effect. Any change to Merchant’s bank account, access
code, or permissions from its bank must be remedied immediately. Merchant must provide Purchaser all required access codes and
allow Purchaser to electronically monitor the Account (e.g., using the anonymous Yodlee link provided by the Purchaser to the Merchant).
This access both ensures that the Merchant is depositing its Future Receivables into the Account and provides written evidence
to enable the Purchaser to be able to make adjustments to the Expected Remittance Amount, if necessary. If the electronic access
to Merchant’s Account is temporarily disabled for any reason, Merchant will, as soon as possible, work with the Purchaser
to re-establish the link between the Account and the Purchaser. Any change to Merchants’ Account, access codes or permission
from the bank to access the Account or receive ACH transactions from the Account must be remedied immediately. The failure by the
Merchant to comply with this Section 3 shall constitute a breach/Event of Default of this Agreement.

 

		4.	Timing, Method of Payment, Processing Trial. Merchant and Purchaser agree that Purchaser shall pay the Purchase Price
or any portion thereof to Merchant only at a time, and through a method, acceptable to Purchaser and at Purchaser's sole discretion.
Merchant and Purchaser also agree that Purchaser, in its sole discretion, may refuse to pay the Purchase Price or any portion thereof
to Merchant and cancel this Agreement at any time prior to the Purchase Price being paid. Prior to paying the Purchase Price, to
the extent that the Purchaser chooses to receive its Amount Sold pursuant to a Direct Split, as described above, Purchaser may
conduct a site inspection and shall conduct a processing trial (the “Processing Trial”) to determine whether the Daily
Percentage will be correctly processed and/or reported by Merchant's card processor or bank to Purchaser. In the event Purchaser
determines to conduct a Processing Trial, Merchant acknowledges and agrees that Purchaser will make its final decision, in its
sole and absolute discretion, whether to purchase the Future Receivables after completion of the Processing Trial. If Purchaser
conducts a Processing Trial and determines not to purchase the Future Receivables, any receivables remitted to Purchaser during
the Processing Trial shall be returned to Merchant.

 

		5.	Waiver. There shall be effected no waiver by failure on the part of Purchaser to exercise, or delay in exercising, any
right under this Agreement, nor shall any single or partial exercise by Purchaser of any right under this Agreement preclude any
other future exercise of any right. The remedies provided hereunder are cumulative and not exclusive of any remedies provided by
law or equity.

 

		6.	Authorization to File Notice of Sale and Security Interest. Merchant hereby authorizes Purchaser to file one or more
financing statement pursuant to the Uniform Commercial Code (UCC) to evidence -and perfect the sale of the Future Receivables and
any continuation statements or amendments thereto. The UCC financing statement shall state that the sale of the Future Receivables
is intended to be a sale and not an assignment for security.

 

		7.	Power of Attorney. Merchant irrevocably appoints Purchaser as its agent and attorney-in-fact with full authority to
take any action or execute any instrument or document to settle all obligations due to Purchaser from any third party, or any breach
by Merchant set forth in Section 10 or any other section of this Agreement or the occurrence of an event of default as described
and defined in this Agreement, including, without limitation (i) to obtain and adjust insurance; (ii) to collect monies due or
to become due under or in respect of any of the Collateral; to receive, endorse and collect any checks, notes, drafts, instruments,
documents or chattel paper in connection with clause (i) or (ii) above; (iv) to sign Merchant’s name on any invoice, bill
of lading or assignment directing customers or account debtors to make payment directly to Purchaser; and (v) to file any claims
or take any action or institute any proceeding which Purchaser may deem necessary for the collection of any of the unpaid Amount
Sold, or otherwise to enforce its rights with respect to the payment of the Amount Sold.

 

     

     

    

 

Page: 4 Deal Application ID : 21988

 

		8.	Refunds and Purchaser's Risk. Purchaser does NOT CHARGE ANY ORIGINATION OR BROKER FEES. If Merchant is charged such
a fee, it is not being charged by Purchaser or an agent of Purchaser. Additionally, because this is not a loan, Purchaser does
not charge any interest, finance charges, points, late fees or similar fees (except as permitted by applicable law in connection
with civil judgments). Purchaser is purchasing the Future Receivables at a discount. Because the transaction evidenced by this
Agreement is not a loan, there are no specific scheduled payments and no repayment term. If Merchant's business slows down and
Merchant's Future Receivables decrease or if Merchant closes its business or ceases to process Payment Devices and Merchant has
not violated any of the representations, warranties and covenants provided in paragraph 10 below, there shall be no default or
breach of this Agreement. Purchaser is purchasing the Future Receivables and Purchaser assumes the risk that Merchant's business
may fail or be adversely affected by conditions outside the control of Merchant provided Merchant has not breached a representation,
warranty or covenant set forth in paragraph 10 below. A returned item refund of $35.00 will be assessed if, for any reason, (a)
a check, draft or similar instrument issued by the Merchant or an individual that signs this Agreement is not honored or cannot
be processed; or (b) an electronic debit is returned unpaid or cannot be processed. Merchant and any individual that signs this
Agreement authorize Purchaser to resubmit returned payments in its discretion. At Purchaser's option, Purchaser will assess this
fee the first time a payment is not honored or paid, even if it is later honored or paid following resubmission. Any check, draft
or similar instrument may be collected electronically if returned for insufficient or uncollected funds. Additionally, a blocked
account refund of $100.00 will be assessed as described above as well as a breach refund of $2,500.00 in the event that the Merchant
violates the terms of this agreement, which violation remains uncured for more than 5 days. These refund will be paid in order
to reimburse the Purchaser for the costs that it incurs in connection with returned items, blocked accounts and breaches, respectively.

 

		9.	Right to Cancel. Merchant may cancel this transaction at any time prior to midnight of the fifth business day after
Purchaser forwards the Purchase Price to Merchant. In order to cancel the transaction, Merchant must provide notice to the Purchaser
and return the full Purchase Price to Purchaser within five days of receipt of the Purchase Price.

 

		10.	Merchant's Representations, Warranties and Covenants. Merchant represents, warrants and covenants that as of the
date and during the term of this Agreement: (i) the Future Receivables are not subject to any claims, charges, liens, restrictions,
encumbrances or security interests of any nature whatsoever; (ii) Merchant will not sell the Future Receivables to another person
or entity; (iii) Merchant will not conduct business under any name other than as disclosed herein, shall not change its business
location without the prior written consent of Purchaser, and shall not temporarily close its business for renovations or other
purposes; (iv) Merchant will not change or add credit card processors or change the Account without the prior written approval
of Purchaser; (v) Merchant will not take any action to intentionally discourage the use of credit cards, debit cards or other payment
cards; (vi) Merchant will not undertake any transaction involving the sale of Merchant, either by an issuance, sale or transfer
of ownership interests in Merchant that results in a change in ownership or voting control of Merchant, or by a sale or transfer
of substantially all of the assets of Merchant; (vii) Merchant will not voluntarily permit another person or company, including
without limitation a franchisor company (if Merchant is a franchisee), to assume or take over the operation and/or control of the
Merchant's business or business locations; (viii) Merchant is not currently contemplating the filing of a bankruptcy proceeding
or closing Merchant's business and Merchant has not retained any attorney, other consultant or professional to provide any advice,
assistance or planning with respect to the filing of a bankruptcy; (ix) all information provided by Merchant to Purchaser in this
Agreement, application, interview with Purchaser or otherwise and all of Merchant's financial statements and other financial documents
provided to Purchaser are true and correct and accurately reflect Merchant's financial condition and results of operations; (x)
Merchant will possess and maintain insurance in such amounts and against such risks as are necessary to protect its business and
shall show proof of such insurance upon demand; (xi) Merchant has all permits, licenses, approvals, consents and authorizations
necessary to conduct its business and will promptly pay all necessary taxes, including but not limited to employment and sales
and use taxes; (xii) Merchant and the person(s) signing this Agreement on behalf of Merchant have full power and authority to enter
into and perform the obligations under this Agreement; (xiii) Merchant will provide Purchaser copies of all documents related to
Merchant's card processing activity or financial and banking affairs within five (5) days of a request by Purchaser; (xiv) Merchant
will permit Purchaser to conduct a site inspection of Merchant's business, including an inspection of Merchant's credit card terminals,
at any reasonable time during the term of this Agreement without notice to Merchant; (xv) Merchant will not take any action to
cause the Future Receivables to be settled or delivered to any bank account other than the bank account that the Future Receivables
are being settled or delivered to as of the date of this Agreement and in accordance with the terms of this Agreement; (xvi) Merchant
will not enter into any financing agreement wherein and whereby the repayment terms of the agreement require Merchant to make daily
or weekly payments (NO “STACKING”); (xvii) Merchant will conduct its business consistent with past practice and shall
not take any action that would have an adverse effect on the use, acceptance, or authorization of any Payment Device for the purchase
of Merchants products or services; (xviii) Merchant has not, will not and is not contemplating retaining/paying in any way a third-party
debt consolidator, nor has the Purchaser consulted with nor will the Purchaser consult with, a third-party debt consolidator in
contemplation of negotiating a change to the terms and conditions of this Agreement. Merchant understands clearly that the breach
of any of the foregoing shall constitute a breach/event of default under this Agreement; (xviv) Merchant will not block Purchaser
from receiving/requesting ACH remittances from Merchant’s Account and will act in good faith to enable Purchaser to access
at all times the Account for purposes of electronic surveillance; and (xvv) has disclosed any condition that has resulting in or
would result in a material adverse change to Merchant’s business and knows of no condition and there is no condition which
is likely to result in a material adverse change to its business. Merchant understands that the violation of any of these covenants
at any time would constitute a breach of this Agreement. Additionally, if any of the representations above are not true as of the
date hereof, this would also constitute a breach of this Agreement.

 

TO THE EXTENT THAT INFORMATION PROVIDED BY THE MERCHANT
THAT IS FALSE OR MISLEADING, MERCHANT SHALL BE DEEMED TO BE IN BREACH OF THIS AGREEMENT AND PURCHASER SHALL BE ENTITLED TO ANY
REMEDIES UNDER LAW. ANY MISREPRESENTATION MADE BY MERCHANT OR OWNER OR ANY REPRESENTATIVES OF MERCHANT OR OWNER IN CONNECTION WITH
THIS AGREEMENT MAY CONSTITUTE A SEPARATE CAUSE OF ACTION FOR FRAUD OR INTENTIONAL MISREPRESENTATION.

 

     

     

    

 

 Page: 5 Deal Application ID : 21988

 

		11.	Specified Percentage. Purchaser agrees to accept
the remittance of the Specified Percentage in one of the following ways: (i) directly from Merchant's card processor; (ii) by
debiting the Merchant's bank account; or (iii) by debiting a deposit account established by Merchant that is approved by Purchaser.
Purchaser may decide in its sole discretion which of the three methods it will accept for the remittance of the Specified Percentage
and will notify Merchant prior to delivering the Purchase Price to Merchant.

 

If Purchaser agrees to accept the remittance of the Specified
Percentage directly from the Merchant's card processor, Merchant agrees to enter into an agreement with a card processor acceptable
to Purchaser (“Processor”) that authorizes Processor to pay the Specified Percentage directly to Purchaser rather than
to Merchant until the Amount Sold has been forwarded by Processor to Purchaser. This authorization shall be irrevocable, absolute
and unconditional. Merchant hereby irrevocably grants Processor the right to hold the Specified Percentage and to pay Purchaser
directly (at, before or after the time Processor credits or remits to Merchant the balance of the Future Receivables not sold by
Merchant to Purchaser) until the entire Amount Sold has been forwarded to Purchaser. Merchant authorizes Purchaser to act as Merchant's
agent for purposes of accessing and retrieving transaction history information regarding Merchant from Processor and any additional
card processors Merchant may utilize during the term of this Agreement. Merchant acknowledges and agrees that Processor may provide
Purchaser with Merchant's Payment Device processing history, including without limitation Merchant's chargeback experience and
any communications about Merchant received by Processor from a card processing system.

 

Merchant acknowledges that Purchaser does not have any
power or authority to control the Processor's actions with respect to the authorization, clearing, settlement and other processing
of transactions and that Purchaser is not responsible for the Processor's actions. Merchant agrees to hold Purchaser harmless for
the Processor's actions or omissions.

 

If Purchaser agrees to accept the remittance of the Specified
Percentage by debiting the Merchant's bank account, Merchant irrevocably authorizes Purchaser or its designated successor or assignee
to withdraw the Specified Percentage by initiating a debit via the Automatic Clearing House (ACH) system to the Merchants' bank
account (as listed in Merchant's application) or such other bank account that Merchant maintains (“Bank Account”).
Merchant agrees to complete and execute a written ACH authorization (the “ACH Authorization) permitting Purchaser to debit
the Bank Account pursuant to the terms of this Agreement. Any such ACH Authorization is incorporated into and made a part of this
Agreement. In the event Purchaser withdraws an incorrect amount from Merchant's Bank Account, Merchant authorizes Purchaser to
credit the Bank Account for the appropriate amount. Merchant and each Guarantor also authorize Purchaser to act as an agent for
purposes of accessing and retrieving account activity and account balance information from any bank accounts of Merchant or Guarantor(s).

 

If Purchaser agrees to accept the remittance of the Specified
Percentage by debiting a deposit account established by Merchant that is approved by Purchaser (“Approved Account”),
Merchant agrees to complete all necessary forms to establish the Approved Account. Merchant acknowledges and agrees that any funds
deposited into the Approved Account by Merchant's card processor will remain in the Approved Account until the Specified Percentage
is withdrawn by Purchaser and then the remaining funds, minus any amount required to maintain the minimum balance for the Approved
Account, will be forwarded to Merchant's Bank Account. If the Approved Account requires a minimum account balance, Purchaser may,
in its sole discretion, fund the required minimum balance for the Approved Account out of the Purchase Price.

 

		12.	Telephone Monitoring, Recording and Contacts. Purchaser may choose to monitor and/or record telephone calls with Merchant
and its owners, employees or agents. These calls are monitored and/or recorded solely for evaluation by supervisors, training,
monitoring for compliance purposes, collections, and quality control. By signing this Agreement, Merchant agrees that any call
between Purchaser and Merchant or a representative of Merchant may be monitored and/or recorded for these purposes. Merchant further
agrees that: (i) it has an established business relationship with Purchaser and may be contacted from time to time regarding transactions
with Purchaser by telephone, text message or email; (ii) such contacts are not considered unsolicited or inconvenient; and (iii)
any such contact may be made using any wireless, mobile cellular or other number Merchant or its representative gave Purchaser,
using any e-mail address Merchant or its representative gave Purchaser, or using an automated dialing and announcing or similar
device, unless prohibited by law. This authorization is binding upon Merchant upon signing this Agreement and shall not be deemed
withdrawn or revoked should Purchaser determine not to purchase the Future Receivables from Merchant.

 

		13.	Miscellaneous. This Agreement shall be binding upon Merchant as well as its successors, assigns, related companies and
Affiliated Entity (as defined below) as well as any company or person (or group of persons working together) that purchases substantially
all of the Merchant’s assets or a majority of its voting interests and/or control over the Merchant. This Agreement shall
inure to the benefit of Purchaser, its successors and assigns. This Agreement constitutes the entire Agreement between the Parties,
and no representations, agreements, or understandings of any kind, either written or oral, shall be binding upon the parties unless
expressly contained herein. This Agreement is a complete and exhaustive statement of the terms of the parties' agreement, which
may not be explained or supplemented by evidence of consistent or inconsistent additional terms or contradicted by evidence of
any prior or contemporaneous agreement. The Parties may change any of the terms of this Agreement or amend this Agreement but any
such changes or amendments shall not be effective unless they are in writing, agreed to by both Parties, and signed by Merchant
and/or Guarantor(s) as applicable. If any of the provisions of this Agreement are determined to be invalid, illegal or unenforceable
in any respect, the remaining provisions shall not be affected in any manner. All Parties hereby acknowledge having the full power
and authority to enter into and perform the obligations under this Agreement. Merchant and Guarantor(s) agree to execute such further
and additional documents, instruments, and writings as may be necessary, proper, required, desirable, or convenient for the purpose
of fully effectuating the terms and provisions of this Agreement. The information submitted by Merchant as part of its application
for this transaction is hereby incorporated into and made a part of this Agreement. The signatures to this Agreement may be evidenced
by facsimile copies or other electronic means reflecting the Party's signature hereto, and any such copy or signature shall be
sufficient as if it were an original signature. In lieu of a signature, Purchaser shall be deemed to have accepted the terms of
this Agreement upon payment of the Purchase Price to Merchant. Paragraph 10 and paragraphs 12 through 18 shall survive any termination,
satisfaction or cancellation of this Agreement.

 

     

     

    

 

Page: 6 Deal Application ID : 21988

 

		14.	Governing Law This Agreement, all transactions it contemplates, the entire relationship between the Parties, and all
Claims (as defined in paragraph 15 below), whether such Claims are based in tort, contract or arise under statute or in equity,
including all Claims involving an Affiliated Entity of Purchaser, shall be governed by and enforced in accordance with: (i) the
laws of the State of New York without regard to principles of conflicts of laws that would require the application of any other
law; and (ii) federal law for the limited purpose of the Arbitration Agreement (paragraph 17 below). Affiliated Entity means and
includes: (i) any entity or person that has owned or controlled Purchaser or any entity that has been owned or controlled by Purchaser;
(ii) any predecessor or successor entities of Purchaser; (iii) any entity or person who at any time owns or holds an equity or
security interest in the Future Receivables and the interest was granted by Purchaser; and (iv) all officers, directors, owners
and employees of Purchaser, its parent company or any Affiliated Entity; and (v) any parent companies of any Affiliated Entity
and their subsidiaries.

 

		15.	Disputes Any claim, dispute or controversy between any of the Parties or between any of the Parties and an Affiliated
Entity arising from or relating in any way to the relationship between the Parties, including any relationship with an Affiliated
Entity, whether such claims are based in tort, contract, or arise under statute or in equity (referred to herein as “Claim”
or “Claims”), shall be resolved only as provided in this Agreement. Claim includes but is not limited to: any disputes
regarding or relating to this Agreement or the application provided in connection with this transaction; any solicitation or advertising
materials; any activities relating to the maintenance or servicing of the transaction; any disputes arising from any collection
activity related to a breach or alleged breach of this Agreement; any disputes concerning the processing or collection of Future
Receivables; any disputes regarding information obtained by Purchaser from, or reported by Purchaser to, Merchant, credit bureaus
or others; and any disputes resulting from or relating to, in any way, any previous relationship, agreement or contract between
the Parties or Merchant and an Affiliated Entity including but not limited to an agreement under which Merchant sold Future Receivables
to Purchaser or an Affiliated Entity. The Parties hereby agree that this provision amends and supersedes any provision in a previous
agreement entered into between the Parties or between Merchant and an Affiliated Entity regardless of whether the previous agreement
has been satisfied, terminated or is in default. Accordingly, any Claims between the Parties or made against or by an Affiliated
Entity shall no longer be governed by the dispute resolution provisions contained in a previous agreement but shall be governed
by paragraphs 14 through 19 of this Agreement; provided, however, that any changes this provision makes to previous agreements
between the Parties or made against or by an Affiliated Entity shall not apply in any litigation, arbitration or other proceeding
commenced before the date of this Agreement.

 

		16.	Litigation. If a Claim is filed in court, the Claim must be filed in the State of New York and the Parties hereby agree
that the exclusive venue for all Claims filed in court shall be in the State of New York. No court action may be brought in any
other state or jurisdiction except as necessary to enforce a valid security interest or enforce a judgment entered in New York.
The Parties hereby waive any claim against or objection to the in personam jurisdiction and venue in the courts of the State of
New York.

 

NO CLAIM FILED IN COURT WILL BE HEARD BY A JURY AND
ANY CLAIM WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ACTIONS ARE NOT PERMITTED. NO COURT MAY ORDER, PERMIT OR CERTIFY A CLASS
ACTION, REPRESENTATIVE ACTION, PRIVATE ATTORNEY-GENERAL LITIGATION OR CONSOLIDATED ACTION. NO COURT MAY ORDER OR PERMIT A JOINDER
OF PARTIES, UNLESS BOTH MERCHANT AND PURCHASER CONSENT TO SUCH JOINDER IN WRITING.

 

		17.	ARBITRATION Any Party may elect to resolve any Claim by neutral, binding arbitration. An election to arbitrate a Claim may be made by any Party instead of filing an action in court or in response to a claim, counterclaim or cross claim filed in court by any Party. If a Party requests arbitration, all Claims (including counterclaims and cross claims) any Party may have against any other Party or Affiliated Entity, whether such Claims are deemed to be compulsory or permissive in law, shall be submitted to binding arbitration pursuant to this paragraph 17 (referred to herein as the “Arbitration Agreement”). The failure to bring such a Claim is a waiver of, and bars, the bringing of such a Claim in any subsequent arbitration or court action. Any arbitration hearing that requires the attendance of the Parties shall take place in the federal judicial district in the State of New York. The Party initiating the arbitration proceeding may select from the following arbitration administrators, which will apply the appropriate rules for commercial disputes in effect at the time the Claim is filed with the arbitration organization (“Arbitration Rules”): the American Arbitration Association (“AAA”), JAMS or any other organization the Parties agree to in writing. If neither AAA nor JAMS is able or willing to serve as the arbitration administrator and the Parties are unable to agree on a replacement administrator or arbitrator(s), then a court of competent jurisdiction will appoint an administrator or arbitrator(s). For information on arbitration fees and costs, a copy of the Arbitration Rules, or to file a claim contact AAA at 335 Madison Avenue, Floor 10, New York, New York 10017-4605, www.adr.org (phone 1-800-778-7879) or JAMS at 620 Eighth Ave., Floor 34, New York, NY 10018, www.jamsadr.com (phone 1-800-352-5267). In the event of a conflict between the Arbitration Rules and this Arbitration Agreement, this Arbitration Agreement shall govern. Judgment upon any arbitration award may be entered in any court with jurisdiction and may be enforced by any court having jurisdiction over that judgment. If a Party elects arbitration and the other Party refuses to arbitrate, the Party electing arbitration may seek a court order enforcing this Arbitration Agreement. In that event, the court shall determine any issues regarding enforceability of this Arbitration Agreement, including the validity and effect of the class action waiver (set forth below), but all other issues shall be decided by the arbitrator. All statutes of limitation that otherwise would apply to an action brought in court will apply in arbitration. 

                                                                      

                                                                     NO CLAIM SUBMITTED TO ARBITRATION WILL BE HEARD BY A JURY AND ANY ARBITRATION UNDER THIS AGREEMENT WILL TAKE PLACE ON AN INDIVIDUAL BASIS; CLASS ARBITRATIONS AND CLASS ACTIONS ARE NOT PERMITTED. NO ARBITRATOR MAY ORDER, PERMIT OR CERTIFY A CLASS ACTION, REPRESENTATIVE ACTION, PRIVATE ATTORNEY-GENERAL LITIGATION OR CONSOLIDATED ARBITRATION. NO ARBITRATOR MAY ORDER OR PERMIT A JOINDER OF PARTIES, UNLESS BOTH MERCHANT AND PURCHASER CONSENT TO SUCH JOINDER IN WRITING.

 

     

     

    

 

Page: 7 Deal Application ID : 21988

 

		18.	Remedies In the event Merchant breaches, any of the provisions of this Agreement, including but not limited to the representations,
warranties and covenants made in paragraph 9, Purchaser shall be entitled to all remedies available under law. In any action for
damages, Purchaser shall be entitled to damages equal to the Amount Sold less the amount received by Purchaser. Merchant and the
individuals signing this Agreement hereby agree that Purchaser may electronically debit from any of Merchant's or the individual
signatory's bank accounts via ACH or otherwise all or any portion of the Amount Sold or may instruct Merchant's processor to forward
to Purchaser all or any portion of the Amount Sold outstanding if Merchant breaches this Agreement. In addition to any other remedies
provided Purchaser under this Agreement, in the event that Merchant changes or permits the change of the Processor accepted by
Purchaser, utilizes the services of an additional card processor or changes the Account, Purchaser shall have the right, without
waiving any of its other rights or remedies and without notice to Merchant or Guarantor(s), to notify the new or additional card
processor or the bank where the new Account is located, as the case may be, of the sale of the Amount Sold of Future Receivables
hereunder and to direct such new or additional processor or bank to make payment to Purchaser of all or any portion of the amounts
received or held by such card processor or bank for or on behalf of Merchant to pay any amounts Purchaser is entitled to receive
under the terms of this Agreement. Merchant hereby grants to Purchaser an irrevocable power of attorney and hereby appoints Purchaser
and its designees as Merchant's attorney-in- fact to take any and all actions necessary or appropriate to direct such new or additional
card processor to make payment to Purchaser as contemplated by this paragraph.

 

The transaction(s) governed by this Agreement involves
interstate commerce and the Parties agree that arbitration shall be governed by the Federal Arbitration Act (9 U.S.C. § 1
et. seq.) and the Arbitration Rules and not by any state law concerning arbitration. The arbitrator will be required to follow
relevant law and applicable judicial precedent to arrive at a decision and shall be empowered to grant whatever relief would be
available in court. The cost of any arbitration proceeding shall be divided as follows: (i) if a Party other than Purchaser or
an Affiliated Entity initiates arbitration and the damages claimed are less than $25,000 or Purchaser or an Affiliated Entity initiate
arbitration, Purchaser shall pay all arbitration fees and costs; (ii) if anyone other than Purchaser or an Affiliated Entity initiates
arbitration and the damages claimed are $25,000 or more, the parties to the arbitration shall split the fees and costs for arbitration
equally. Notwithstanding the foregoing, if a Party other than Purchaser believes the applicable cost of arbitration may be too
burdensome, that Party may seek a waiver of costs under the applicable Arbitration Rules. If such a request is made but denied
by the arbitration organization, Purchaser will consider a written request to either advance or pay all or part of the costs. If
arbitration is elected, each Party shall be responsible for its own attorney, witness and consulting fees provided the prevailing
Party may seek reimbursement of attorney fees and arbitration costs if they prevail as provided in paragraph 16 below. If any part
of this Arbitration Agreement, other than waivers of class action rights, is deemed or found to be unenforceable for any reason,
the rest shall remain enforceable. If the waiver of class action rights is deemed or found to be unenforceable for any reason in
a case in which class action allegations have been made, the remainder of this Arbitration Agreement shall be unenforceable.

 

		19.	Attorney's Fees and Costs. In the event Merchant defaults, Purchaser shall be entitled to recover from Merchant and
Guarantors all costs of collection, including reasonable attorney's fees and third party collection costs, including all such costs
and fees incurred in the event of a bankruptcy filing by Merchant or Guarantors.

 

		20.	Reporting: By signing this Agreement you authorize Purchaser to obtain a credit report and any background report on
the Merchant deemed necessary by Purchaser and any individual that signs this Agreement for purposes of deciding whether to approve
the purchase of the Amount Sold or for any update, renewal, or for evaluating the qualification of Merchant for other products
of Purchaser or Affiliated Entities and for any other lawful purpose. The report Purchaser obtains may include, but is not limited
to, the business' or individuals' credit history or similar characteristics, employment and education verifications, social security
verification, criminal and civil history, Department of Motor Vehicle records, any other public records, and any other information
Purchaser deems relevant. The reports will be used by Purchaser to determine if it will proceed with the Purchase of the Future
Receivables from Merchant and shall not be used for any other purposes.

 

		21.	INDIVIDUAL LIABILITY OF GUARANTOR(S) FOR BREACH OF REPRESENTATIONS, WARRANTIES AND COVENANTS. By signing this Agreement
on behalf of Merchant AND ON THEIR OWN BEHALF (each such signer a Guarantor), the Guarantors (defined as the Owners that have signed
below) hereby assume and, jointly and severally, guarantee those obligations of the Merchant arising under this Agreement as set
forth above and in Appendix B below. This guarantee is unlimited, absolute and without condition, and is binding upon each Guarantor,
the Guarantor's heirs, legal representatives, successors and assigns. The Guarantors to this Agreement are hereby notified that
a negative credit report reflecting on his/her credit record may be submitted to a credit reporting agency if the terms of this
Agreement are breached and the resulting damages are not satisfied. Each Guarantor acknowledges receiving a copy of this Agreement
and having read the terms of this Agreement, including, without limitation, the guarantee set forth in this paragraph, and the
individual owner's and Guarantor's signatures below shall serve as confirmation that they understand all terms and conditions of
this Agreement.

 

     

     

    

 

Page: 8 Deal Application ID : 21988

 

EACH PARTY ACKNOWLEDGES THAT THEY HAVE READ AND AGREE
TO ALL THE FOREGOING TERMS AND CONDITIONS, INCLUDING THE CHOICE OF LAW AND ARBITRATION PROVISIONS SET FORTH ABOVE.

 

	LIBERTAS FUNDING, LLC	 	 
	 	 	 	 
	by:	Randy Saluk, CEO	 	/s/
    Randy Saluk
	(Company Officer)	 	(Signature)
	FOR THE MERCHANT (#1)	 	 
	 	 	 	 
	by:	Stephen Christian 	 	/s/
    Stephen Christian
	(Print Name and Title)	 	(Signature)
	FOR THE MERCHANT (#2)	 	 
	 	 	 	 
	by:	 	 	 
	(Print Name and Title)	 	(Signature) 
	OWNER #1	 	 
	 	 	 	 
	by:	Stephen Christian 	 	/s/
    Stephen Christian
	(Print Name and Title)	 	(Signature)
	OWNER #2	 	 
	 	 	 	 
	by:	 	 	 
	(Print Name and Title)	 	(Signature)

 

     

     

    

 

Page: 9 Deal Application ID : 21988

 

APPENDIX A

 

ACH Authorization Agreement

 

This Authorization Agreement for Direct Deposit (ACH Credit)
and Direct Collections (ACH Debits) is part of (and incorporated by reference into) the Future Receivables Sale Agreement (the
“Agreement”). Merchant should keep this important legal document for Merchant’s records. This authorization
agreement (the ACH Authorization) is entered into pursuant to the Future Receivables Sale Agreement (the “Agreement”)
dated 8/4/2017 between the undersigned Merchant and Libertas Funding LLC (the “Purchaser”). Terms used and not defined
herein will have the meanings assigned to such terms in the Agreement.

 

The individual signing this ACH Authorization on behalf of Merchant
certifies to Purchaser that he or she is a duly authorized check signer on the financial institution account identified below,
that he or she is authorized to enter into this ACH Authorization on behalf of the Merchant, and that the Merchant will be bound
by all the terms of this ACH Authorization.

 

This authorization shall remain in effect until the sooner of (a)
such time that Purchaser has received the Purchased Amount under the Agreement, or (b) Purchaser permits Merchant to revoke this
ACH Authorization, as evidenced in writing to Merchant.

 

The undersigned Merchant hereby authorizes Purchaser to initiate
debit or credit entries from and to Merchants Account at the bank specified below. Merchant and Purchaser agree to be bound by
the applicable rules set forth by the National Automated Clearinghouse Association.

Furthermore, if any such ACH transactions should be returned for
insufficient funds, Merchant authorizes Purchaser to reattempt to collect such amounts by ACH, and in any such case, collect a
fee as specified in the Agreement.

 

Merchant further agrees that a breach of this ACH Authorization
will constitute a breach of the Agreement.

 

Any capitalized term(s) that are not otherwise defined shall
retain the same meaning set forth in the Future Receivables Sale Agreement.

 

DISBURSEMENT OF RECEIVABLES SALE PROCEEDS. By signing below,
Merchant authorizes Purchaser to disburse the Purchase Price, less the amount of any applicable setup fee, by initiating an ACH
credit, wire transfer, or similar means to the checking account indicated below (or a substitute checking account Merchant later
identifies and is acceptable to Purchaser) (hereinafter referred to as the “Designated Checking Account”) in the disbursal
amount set forth in the accompanying Future Receivables Sale Agreement.

 

COLLECTION OF FUNDS ARISING FROM FUTURE RECEIPTS. By signing
below, Merchant authorizes Purchaser to collect amounts Purchaser is entitled to receive under the Agreement by initiating ACH
Debits of the Specified Percentage of Merchant’s daily receivables to the Designated Checking Account each business day until
Purchaser receives the Amount Sold. At the time of execution of the Future Receivables Sale Agreement, the Parties agree that the
Purchased Percentage equates to the Dollar Amount of Purchased Percentage set forth in the Agreement, and that the Dollar Amount
of Purchased Percentage shall be debited each business day. However, Merchant acknowledges and agrees that the Dollar Amount of
Purchased Percentage may change and fluctuate so that it directly correlates to the fluctuation of the amount of Future Receivables
generated by Merchant. Purchaser will debit Merchants Account in the amount set forth in the Agreement, as may be modified from
time to time by agreement of the Parties. Purchaser acknowledges that no prior notification will be provided in advance of debits
or credits authorized under the Agreement.

 

Merchant authorizes Purchaser to increase the amount of any scheduled
ACH debit entry or assess multiple ACH debits for the amount of any previously scheduled payment(s) that was not paid because Merchant’s
financial institution was not open or was not able to process ACH transactions. If a transaction is rejected by Merchant’s
financial institution for any reason other than termination of this authorization, including without limitation insufficient funds,
Merchant understands that Purchaser may, at its discretion, attempt to process the transaction again as permitted under the NACHA
Rules. Merchant also authorizes Purchaser to initiate ACH entries to correct any erroneous payment transaction. Merchant understands
that Merchant is responsible for ensuring that funds arising from Future Receivables of Merchant remain in the Designed Checking
Account each day until Purchaser debits the amount to which it is entitled under the Future Receivables Sale Agreement. Merchant
agrees to notify Purchaser promptly if there are any changes to the account and routing numbers of the Designated Checking Account.
Purchaser is not responsible for any overdrafts, rejected transactions, or other fees that may result from credits or debits initiated
under this Authorization Agreement. This authorization is to remain in full force and effect until Purchaser has remitted the full
amount of the Amount Sold under the Agreement. The origination of ACH transactions to the Designated Checking Account must comply
with, and both Merchant and Purchaser agree to be bound by, the provisions of applicable law and the NACHA Rules. If Merchant’s
financial institution rejects Purchaser’s debits for any reason, Merchant is still responsible for making timely remittances
of the Purchased Percentage to Purchaser each business day, pursuant to the Agreement.

 

BUSINESS PURPOSE ACCOUNT. By signing below, Merchant attests
that the Designated Checking Account was established for business purposes and not primarily for personal, family or household
purposes. The individual signing below on behalf of Merchant certifies that he/she is an authorized signer on the Designated Checking
Account. Merchant will not dispute any ACH transaction initiated pursuant to this Authorization Agreement, provided the transaction
corresponds to the terms of this Authorization Agreement. Merchant requests the financial institution that holds the Designated
Checking Account to honor all ACH entries initiated in accordance with this Authorization Agreement.

 

     

     

    

 

Page: 10 Deal Application ID : 21988 

 

Payment Authorization. I authorize my bank to debit my account
as identified above to the terms stated here. This authorization shall remain in effect until the Purchaser and bank receive written
notification from me of intent to terminate at such time and in such manner as to afford the Purchaser and bank reasonable opportunity
to act (minimum 30 days).

 

I understand that if the total amount owed to the Purchaser is increased,
I authorize this plan to continue as long as the payment amount remains unchanged until the amount owed the Purchaser is paid off,
or unless the plan is terminated earlier by me as above.

 

I understand any added amounts can be applied for with a new ACH
Debit Authorization Form.

 

All other changes such as payment amount, frequency, bank account
number change, will require a new ACH Debit Payment Authorization Form to be filled out and submitted to Merchant 15 days prior
to any change being implemented.

 

I will be liable to pay an NSF fee of $25.00 (or the amount allowable
by law), which may be automatically debited for each NSF.I represent and warrant that I am authorized to execute this payment authorization
for the purpose of implementing this payment plan.

 

I indemnify and hold the Purchaser and the bank harmless from damage,
loss or claim resulting from all authorized actions hereunder.

 

Payments will be scheduled daily in the amount of 798.81.

 

Recurring schedule of payment will start on the following day after
the financing proceeds are disbursed to the business.

 

Payments will be deducted every day, excluding weekends until full
payback amount, referred to as the Purchased Amount (67,100.00), is reached.

 

Routing Number Account:

 

Number Account Name:

 

Bank Name:

 

Type of Account:

 

	 ̈	 ̈	 
	   Checking	   Savings	 

 

Merchants Legal Name: M G CLEANERS, LLC

 

View-Only Access to Online Bank Login:

 

Password:

 

Date: 8/4/2017

 

	FOR THE MERCHANT (#1)
	 	 	 	 
	by:	Stephen Christian 	 	/s/ Stephen
    Christian
	(Print Name and Title)	 	(Signature)
	SSN
    #	 	Driver License #:	 	 
	 	 	 	 	 
	FOR THE MERCHANT (#2)	 	 
	 	 	 	 
	by:	 	 	 
	(Print Name and Title)	 	(Signature)
	SSN #	 	Driver License #:	 	 

 

     

     

    

 

Page: 11 Deal Application ID : 21988

 

APPENDIX B

 

SECURITY AGREEMENT AND GUARANTY

 

Merchants Legal Name: M G CLEANERS, LLC

Physical Address: 442 E Sabine Street CARTHAGE
TX

Zip Code: 75633

Federal ID#: 203175973

 

Security Interest.

 

To secure Merchants delivery obligations to LIBERTAS FUNDING, LLC
(the “Purchaser”) under the Future Receivables Sale Agreement (the “Agreement”) dated 8/4/2017, Merchant
hereby grants to Purchaser a security interest in (a) all accounts, chattel paper, documents, equipment, general intangibles, instruments
and inventory, as those terms are defined in Article 9 of the Uniform Commercial Code (the UCC), now or hereafter owned or acquired
by Merchant; and (b) all proceeds, as that term is defined in Article 9 of the UCC, ((a) and (b) are collectively, the “Collateral”).

 

Cross-Collateral/Additional Collateral.

 

To secure Owners (see below) delivery obligations to Purchaser under
this Security Agreement and Guaranty (the “Security Agreement”), Owner also hereby grants Purchaser as Additional Collateral
a security interest in:

 

CHRISTIAN CHEMICAL COMPANY, LLC

Owner understands that Purchaser will have a security interest in
the aforesaid Additional Collateral upon execution of this Security Agreement. Merchant and Owner each acknowledge and agree that
any security interest granted to Purchaser under any other agreement between Merchant or Owner and Purchaser (the “Additional
Collateral” or “Cross-Collateral”) will secure the obligations hereunder and under the Agreement.

 

Authority for the Purchaser to file Financing Statements;
Owner Liable for Costs

 

Merchant and Owner each agrees to execute any documents or take
any action in connection with this Security Agreement as Purchaser deems necessary to perfect or maintain Purchasers first priority
security interest in the Collateral, the Additional Collateral and the Cross-Collateral, including the execution of any account
control agreements. Merchant and Owner each hereby authorizes Purchaser to file any financing statements deemed necessary by Purchaser
to perfect or maintain Purchasers security interest, which financing statement may contain notification that Merchant and Owner
have granted a negative pledge to Purchaser with respect to the Collateral, the Additional Collateral and the Cross- Collateral,
and that any subsequent lien or may be tortiously interfering with Purchasers rights. Merchant and Owner shall be liable for and
Purchaser may charge and collect all costs and expenses, including but not limited to attorney’s fees, which may be incurred
by Purchaser in protecting, preserving and enforcing Purchasers security interest and rights.

 

Negative Pledge. Merchant and Owner each agrees not to create,
incur, assume or permit to exist, directly or indirectly, any lien on or with respect to any of the Collateral, the Additional
Collateral or the Cross-Collateral, as applicable.

 

Consent to Enter Premises and Assign Lease. Purchaser shall
have the right to cure Merchants default in the payment of rent on the following terms. In the event Merchant is served with papers
in an action against Merchant for nonpayment of rent or for summary eviction, Purchaser may execute its rights and remedies under
the Assignment of Lease. Merchant also agrees that Purchaser may enter into an agreement with Page: 11 Merchants landlord giving
Purchaser the right: (a) to enter Merchants premises and to take possession of the fixtures and equipment therein for the purpose
of protecting and preserving same; and (b) to assign Merchants lease to another qualified Merchant capable of operating a business
comparable to Merchants at such premises.

 

Remedies. Upon any Event of Default, Purchaser may pursue
any remedy available at law (including those available under the provisions of the UCC), or in equity to collect, enforce or satisfy
any obligations then owing, whether by acceleration or otherwise.

 

Owner Guarantee of Performance Upon Breach of Merchant Agreement.

The Owner Guarantees the Performance of all of the representations,
warranties, covenants (collectively, the “Representations”) made by Merchant in this Security Agreement and the Agreement,
as each agreement may be renewed, amended, extended or otherwise modified (the “Guaranteed Obligations”). To the extent
there is no violation of the Representations then the Owner(s) will not guaranty the payment of the Purchase Amount by the Merchant,
or guaranty that the Merchant will generate Future Receivables sufficient to meet its obligations under the Merchant Agreement.

 

Remedies. The Purchaser may seek remedy via the Personal
Guarantee of Performance:

 

		a.	at the time of any breach by Merchant of any representation, warranty or covenant made by Merchant in this Security Agreement
and/or the Agreement, and

 

		b.	at the time Merchant admits its inability to pay its debts, or makes a general assignment for the benefit of creditors, or
any proceeding shall be instituted by or against Merchant seeking to adjudicate it bankrupt or insolvent, or seeking reorganization,
arrangement, adjustment or composition of it or its debts.

 

     

     

    

 

Page: 12 Deal Application ID : 21988

 

Owner Waivers. In the event that Merchant fails to
make a payment or perform any obligation when due under the Agreement, Purchaser may enforce its rights under this Security Agreement
without first seeking to obtain payment from Merchant, any other guarantor, or any Collateral, Additional Collateral or Cross-
Collateral Purchaser may hold pursuant to this Security Agreement or any other guaranty. Purchaser does not have to notify Owner
of any of the following events and Owner will not be released from its obligations under this Security Agreement if it is not notified
of:

 

		i.	Merchants failure to pay timely any amount owed under the Merchant Agreement;

 

		ii.	any adverse change in Merchants financial condition or business;

 

		iii.	any sale or other disposition of any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed
Obligations;

 

		iv.	Purchaser's acceptance of this Security Agreement; and

 

		v.	any renewal, extension or other modification of the Agreement or Merchants other obligations to Purchaser.

 

Purchaser Actions. Purchaser may take any of the following
actions without releasing Owner from any of its obligations under this Agreement:

 

		i.	renew, extend or otherwise modify the Merchant Agreement or Merchants other obligations to Purchaser;

 

		ii.	release Merchant from its obligations to Purchaser;

 

		iii.	sell, release, Merchant from its obligations to Purchaser;

 

		iv.	sell, release, impair, waive, or otherwise fail to realize upon any collateral securing the Guaranteed Obligations or any other
guarantee of the Guaranteed Obligations; and

 

		v.	foreclose on any collateral securing the Guaranteed Obligations or any other guarantee of the Guaranteed Obligations in a manner
that impairs or precludes the right of Owner to obtain reimbursement for payment under this Agreement.

 

No Reimbursement Until the Merchant Amount plus any
accrued but unpaid interest and Merchants other obligations to Purchaser under the Agreement and this Security Agreement are paid
in full, Owner shall not seek reimbursement from Merchant or any other guarantor for any amounts paid by it under this Agreement.

 

Waivers. Owner permanently waives and shall not seek
to exercise any of the following rights that it may have against Merchant, any other guarantor, or any collateral provided by Merchant
or any other guarantor, for any amounts paid by it, or acts performed by it, under this Agreement, including:

 

		i.	subrogation

 

		ii.	reimbursement;

 

		iii.	performance;

 

		iv.	indemnification; or

 

		v.	contribution.

 

Other. In the event that Purchaser must return any
amount paid by Merchant or any other guarantor of the Guaranteed Obligations because that person has become subject to a proceeding
under the United States Bankruptcy Code or any similar law, Owners obligations under this Agreement shall include that amount.

 

Owner Acknowledgement. Owner acknowledges that: (i)
He/She understands the seriousness of the provisions of this Agreement; (ii) He/She has had a full opportunity to consult with
legal counsel of his/her choice; and (iii) He/She has consulted with counsel of his/her choice or has decided not to avail himself/herself
of that opportunity.

 

Joint and Several Liability. The obligations hereunder
of the persons or entities constituting Owner under this Agreement are joint and several.

 

THE TERMS, DEFINITIONS, CONDITIONS AND INFORMATION SET FORTH IN
MERCHANT AGREEMENT ARE HEREBY INCORPORATED IN AND MADE A PART OF THIS SECURITY AGREEMENT. CAPITALIZED TERMS NOT DEFINED IN THIS
SECURITY AGREEMENT AND GUARANTY SHALL HAVE THE MEANING SET FORTH IN THE MERCHANT AGREEMENT.

 

	FOR THE MERCHANT (#1)
	 	 	 	 
	by:	Stephen Christian 	 	/s/ Stephen Christian
	(Print Name and Title)	 	(Signature)
	SSN #	 	Driver License #:	 	 
	FOR THE MERCHANT (#2)	 	 
	 	 	 	 
	by:	 	 	 
	(Print Name and Title)	 	(Signature)
	SSN #	 	Driver License #:	 	 
	OWNER #1	 	 	 

 

     

     

    

 

Page: 13 Deal Application ID : 21988

 

	by:	Stephen Christian 	 	 
	(Print Name and Title)	 	 
	SSN #	 	Driver License #:	 	 
	OWNER #2	 	 
	 	 	 	 
	by:	 	 	 
	(Print Name and Title)	 	 
	SSN #Exhibit 10.12

 

CORPORATE
GUARANTY

 

This
Corporate Guaranty ("Guaranty")
is made on September 19, 2017, by
SMG INDIUM RESOURCES LTD.,
a Delaware corporation ("Guarantor"), in
favor Crestmark Bank ("Crestmark") to induce
Crestmark
to continue credit
and its loan to M
G CLEANERS, LLC, a Texas limited liability company
("Borrower") and because Guarantor, whose economic
success is vitally linked to Borrower's
success, has determined that executing
and delivering this Guaranty is
in Guarantor's interest and to Guarantor's financial benefit.

 

1.
          Guaranty. Guarantor hereby absolutely,
irrevocably and unconditionally guarantees to Crestmark: (a) the
full, prompt
and unconditional payment
when due of
all existing
and future obligations and indebtedness
of the Borrower to
Crestmark, including
but not limited to the Indebtedness as defined in the Loan and Security
Agreement ("Agreement")
between Crestmark and Borrower (as may be amended) and all principal,
interest and fees under any and all related notes,
as they may
be amended or restated and whether on demand, at maturity, pursuant to
mandatory or optional prepayments, by acceleration
or otherwise; and (b) the
punctual and faithful performance and observation by Borrower
of all duties,
agreements, covenants,
representations and obligations
of Borrower contained
in the Loan Documents
(as defined in Section
3).

 

2.          Absolute,
Unconditional and Continuing Obligation. This Guaranty is an absolute, continuing, unconditional, unlimited and irrevocable guaranty.
Guarantor will not be
relieved
from any obligations
under this Guaranty until this
Guaranty is terminated
in accordance with Section
14. The obligations
and liabilities of Guarantor
will continue notwithstanding any defect in the genuineness,
validi ty or enforceability
of the Indebtedness
or the Loan Documents,
or any other circumstances
which might otherwise
constitute a legal or equitable discharge
or defense
of the liabilities
of a surety
or guarantor or which might otherwise limit
recourse against Guarantor.
This is a guarantee
of payment and not of collection.

 

3.          The
Loan Documents. The Agreement, all related notes,
and all other related documents
now existing or hereafter
arising and executed in connection with the Loan,
including all amendments
and restatements thereto (collectively
"Loan Documents"), are incorporated into and
made a part of this Guaranty by
reference.

 

4.          Continuation
of Liability. The liability and obligations of Guarantor
will in no way be affected, impaired,
diminished or released by
any action or inaction whatsoever other than
the indefeasible payment in
full and in cash
of the Indebtedness.

 

5.          Unconditional
Waiver of all Defenses. Guarantor unconditionally, absolutely
and irrevocably waives each and every defense, which
under principles of guaranty or suretyship law
would otherwise operate to impair
or diminish the liability of Guarantor for
the Indebtedness.

 

6.          Immediate
Recourse/Exercise of Rights by Crestmark. At any time when the Indebtedness, or any portion thereof, has
not been paid when
due (whether by acceleration or otherwise), Crestmark can require that Guarantor
pay Crestmark the amounts owing on this
Guaranty immediately. Crestmark is not
required to collect first from Borrower, any collateral,
any other guarantor, or
any other person. No
delay or stay in any
acceleration of the [ndebtedness, as against the Borrower,
due to the application
of any bankr uptcy, insolvency
or other law or proceeding will
be effective under this Guaranty, and Guarantor agrees
to immediately pay the amount of the
Indebtedness that would
be due and payable but for such delay
or stay. All rights,
powers, and remedies
of Crestmark hereunder and
under the Loan Documents are cumulative and not alternative
and shall be in addition to all rights, powers, and remedies
given to Crestmark by law
and by agreement.

 

7.          Subordination/Subrogation.
In the event
that Guarantor becomes obligated to pay any
sums to
Borrower, or in the event that
Borrower or any subsequent owner of any Collateral
is now or hereafter
becomes indebted to Guarantor, the amount of such Indebtedness
will at all times be subordinate as to lien, time of payment and alJ other respects, to the
amounts owing to Crestmark by Borrower.
Furthermore, until
the Indebtedness is indefeasibly paid in
full and in cash, Guarantor
hereby absolutely,
irrevocably and unconditionally
waives all rights Guarantor may have,
at law or in equity
to seek or claim subrogation.
Crestmark has no duty
to enforce or protect any rights,
which the undersigned may have against
Borrower or any other person and Guarantor assumes full responsibility for enforcing and protecting
these rights.

 

     

     

    

  

8.          Representations
and Warranties. Guarantor represents,
warrants and covenants
to Crestmark that: (a)
it is a corporation duly
organized,
in good standing, and
that the execution and
delivery of this Guaranty
and the performance of
the obligations under this Guaranty
are within Guarantor's
Corporate powers,
have been duly
authorized by all
necessary actions, including
by its board of directors,
and do not contravene
its articles or by-laws; (b) it is the
sole member of Borrower; (c) Guarantor
has completely read and understands the Loan
Documents and agrees
to all those portions
which apply
to Guarantor; (d) Guarantor
was provided an opportunity
to review the
Loan Documents
with its legal counsel;
(e) any financial statements
of Guarantor
furnished Crestmark
are true and correct and include all contingent
liabilities
of Guarantor; (f) since the
date of any financial
statements furnished to Crestmark,
no material adverse change has occurred in the financial condition
of Guarantor; (g) there
are no pending or threatened legal proceedings or
judgments against Guarantor, and no federal or state
tax liens have been filed
or threatened against Guarantor; and (h) Guarantor is not in default or claimed
default under any agreement for
borrowed money. Guarantor agrees to immediately give Crestmark
written notice of any
material adverse change in its financial condition.

 

9.          Expenses.
Guarantor agrees to pay all expenses (including
attorneys' fees) incurred
by Crestmark in connection with the enforcement of Crestmark's
rights under the Loan Documents, this Guaranty,
and the collection of the Indebtedness.

 

10.         Transfer
of Assets. Guarantor further
agrees that until the
Indebtedness is indefeasibly paid in full, and in cash,
Guarantor will not,
without Crestmark's prior written consent: (i) make any
voluntary transfer of any of Guarantor's assets which would have the effect
of materially diminishing Guarantor's present net worth or (ii) guaranty the debts or obligations of any other person or
entity.

 

11.         Reinstatement.
This Guaranty will
continue to be effective or
will be automatically
reinstated, as the case may be, if at any time payment
of all or part of the Indebtedness is rescinded or must otherwise be
restored or returned by Crestmark,
including in connection
with Borrower's bankruptcy or insolvency.

 

12.         Joint
and Several Liability. The term "Guarantor"
shall mean each person
executing this Guaranty, each individually and together
collectively, and the obligations of Guarantor and any other guarantor
executing a guaranty, including
in connection with the
Loan, will be joint and several.

 

13.         Assignability/Binding
Effect. This Guaranty
shall be assignable by
Crestmark without notice to Guarantor and
shall inure to the benefit of
Crestmark and to any subsequent successors
and assigns.

 

14.         Termination.
Notwithstanding anything contained herein to the contrary,
the liability of Guarantor
will be terminated only in the event that
(i) Borrower or Guarantor
has indefeasibly paid Crestmark
in cash and in full the Indebtedness and (ii) the Agreement
is terminated.

 

15.         Severability.
If any provision of this Guaranty is in conflict
with any statute or
rule of law or is otherwise
unenforceable for any reason, then that provision will be deemed
null and void to the extent
of the conflict or unenforceability and will be
deemed severable, but it will not invalidate
any other provision of this Guaranty.

 

16.         Complete
Agreement. This Guaranty is
the final, complete and exclusive expression of the
agreement between Guarantor and Crestmark with
respect to the subject matter
of this Guaranty. This Guaranty
cannot be modified or amended
except in
a writing signed by
both Guarantor and Crestmark.

 

The Guarantor hereby
executes this Guaranty
as of the day and year
first above written.

 

	 	GUARANTOR:
	 	 	 
		SMG INDIUM RESOURCES, LTD.,
	 	a Delaware corporation
	 	 	 
	 	By:	/s/ Matthew C. Flemming
	 	 	Matthew C. Flemming, CEO and Chairman

 

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