Document:

Exhibit 10.2

    

    

    

    FACTORING AGREEMENT

     

    This FACTORING  AGREEMENT  (as amended, this "Agreement"), dated

        as of  the Effective  Date (as  defined  below), is by and between Goodman Capital Finance, a division of Independent Bank (and hereinafter referred to

      as "Goodman") and the entities from time to time party hereto as a client (collectively, the "Client"). All capitalized terms used in this Agreement are defined in

        the body or in the last Section of this Agreement.

     

    For good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, it is agreed as follows:

     

    
      
        
          I.            Factoring of Accounts

        

      

    

     

    (a)          Purchase

            and Sale of Accounts. Client agrees to ofTer to sell
        to Goodman existing  and 

        future Accounts of Client.

        Each such offer shall be made on a schedule, in a form acceptable to Goodman. delivered to Goodman electronically or  by such other means as Goodman  may from time to time
          designate.   Goodman's purchase of an Account ofTercd for sale hereunder will be efTective upon
          its  receipt of such schedule  for such Account, without further act or instrument.

          At the time an Account is presented to Goodman for purchase,  the Client shall also deliver  to Goodman  a copy of all invoices relating to the Account together with evidence of the delivery and performance of the goods and services giving rise
          to such Account.

     

        

    (b)          Payment

          of Purchase Price. As consideration for the assignment and sale of an Account to Goodman hereunder, Goodman shall pay to Client the Purchase Price for such Account on the Settlement Date for such Account by crediting such Purchase Price to the Reserve Account or applying the proceeds of such Purchase Price against the outstanding Advances.

     

    (c)          Credit

          Risk. Except as expressly provided in this subsection with respect to Non-Recourse Accounts, all Accounts purchased  by Goodman hereunder are
          with  full recourse to Client and  without risk to Goodman of non-payment  for any reason. Without limiting the foregoing, Goodman may, in

        its sole discretion at the request of Client, agree to assume the Credit Risk on an Account by written notice from Goodman to Client, which written notice may be in the form of an-email,

        expressly stating that such Account is purchased by Goodman without recourse to the Client (any such Account for which Goodman has so notified the Client, a "Non-Recourse  Account"').  The purchase by Goodman of a Non-Recourse  Account shall be without  recourse to Client
        for losses sustained due

        to Credit Risk except to the extent such Credit Risk is terminated in accordance with the terms hereof. Notwithstanding anything to the contrary herein, Goodman's Credit Risk on a
          Non-Recourse Account shall immediately terminate and such Account shall immediately cease to constitute a Non-Recourse Account hereunder,  in each case without any further action or notice, if (i) such Account is at any time subject to Dispute, (ii) any representation or warranty made by Client hereunder with respect to such Account is untrue, incorrect or

        misleading in any respect, (iii) any covenant or agreement made by Client hereunder with respect to such Account is
          breached, or (iv) this Agreement is terminated by Client.

     

    (d)          Advances. At Client's request, but in Goodman's sole discretion. Goodman may make loans to Client (collectively, "Advances") up to an aggregate amount at any time outstanding not to exceed  the  lesser of  the "Facility 
          Maximum" set forth on Schedule A and the Formula Amount. All Advances are payable upon demand and may be charged by Goodman to the Reserve Account at any time.  Without limiting the foregoing, if at any time the aggregate outstanding Advances exceeds the lesser

        of the Facility Maximum and the Formula Amount, Client shall immediately repay to Goodman such excess Advances.

     

    (e)          Reserve

            Account.  Goodman shall credit
          the Reserve Account with the Purchase Price of Accounts sold to Goodman hereunder as and when payable hereunder and debit the Reserve Account for all payment Obligations of Client as and when due
          hereunder. Goodman shall, upon request of Client and so long as no Event of Default exists, remit to Client any positive balance in the Reserve Account provided that Goodman may withhold from the Reserve Account such amounts as it deems necessary as security for the payment and performance of the Obligations, to enhance the likelihood of repayment of the Obligations or to reflect events, conditions, contingencies or risks which might adversely affect the Collateral or the business of Client. If at any time the Reserve Account is negative, Client shall immediately repay the deficiency to Goodman.

     

    (f)          Account Stated. Client agrees to log on, no less frequently than monthly, to any internet accessible website made available to Client by Goodman to review all transactions posted to Client's account with Goodman. Each transaction posted to the Reserve Account or appearing in a statement received by Client from Goodman in connection herewith shall be subject to subsequent adjustment by Goodman but shall, absent manifest error, be conclusively presumed to be correct and accurate and constitute

        an account stated between Client and Goodman
        unless Client delivers to Goodman a written objection to such transaction, describing the error or errors allegedly contained therein, within thirty (30) days after the earlier of the posting of such transaction to the Reserve Account or delivery to Client of a statement reflecting such transaction.

     

    (g)          Chargebacks. Goodman shall have the right to chargeback to Client the full amount of an Account. even if Goodman has already remitted payment of the Purchase Price therefor, if such Account (i) is or becomes subject to Dispute, (ii)
      is a Non-Recourse
        Account for which the Credit Risk of  Goodman  is terminated  in accordance with the terms here of or (iii) is not a Non-Recourse Account. In the event an Account

        for which Goodman has already remitted payment of the Purchase Price is charged back to Client
        in accordance with the terms hereof,
        Client shall repurchase such Account by paying to Goodman an amount equal to such Purchase Price. In the event

        an Account is charged back to Client prior to the payment by Goodman of the Purchase Price therefor, Goodman shall, in lieu of payment of the Purchase Price for any such Account, credit the Reserve Account with any Proceeds received by Goodman in respect of such

        Account on the Settlement Date therefor. Notwithstanding the repurchase of an Account by Client or the election by Goodman to
          chargeback to Client an  Account, Goodman shall retain  its security 

          interest in such Account as security for full payment and performance of all Obligations.

     

        

    
      
        

    

    
    
      2.            Notation of

            Assignment, Remittances and Collections

    

     

    (a)          Notice of Assignment. At the request of Goodman, all invoices evidencing Accounts
          purchased by Goodman hereunder shall prominently indicate that the Account evidenced thereby has been assigned to, is owned by and is payable directly and only to Goodman  at a lockbox account or other account designated  by Goodman  from
          time to time. Without limiting the foregoing, Client agrees that Goodman may and irrevocable authorizes Goodman to, at any time, notify Customers of the assignment to Goodman of(or security interest of Goodman in) the Accounts and that such Accounts are payable only to Goodman.

     

    (b)          Remittances and Collections. Client shall cause all payments of Accounts to be remitted, and Client shall instruct and cause its Customers to remit all payments, to such lockbox or bank account
        as Goodman may from time to time designate (the "Collection 

            Accounts").If any Obligor receives payment of  an Account, Client

        shall cause such Obligor to, within one
        (I) Business Day of such receipt, remit such payment, in
          the same form received, to the Collection Accounts or as otherwise directed by Goodman. All checks, remittances and other Proceeds of
          Accounts purchased  by Goodman hereunder shall  be property of Goodman. Should Goodman receive a double payment on an Account or other payment which is not identifiable to an Account, Goodman
        shall account for such payment as an open item and, in Goodman's discretion, Goodman may return any duplicate or unidentified payment to the Customer or apply such  unidentified  payment pursuant 10  the Obligations  upon  proper identification and documentation acceptable to
          Goodman.

     

    
      3.           lnterest and Certain Fees.

    

     

    (a)          Interest. The outstanding Advances will bear interest at a variable per annum rate equal

        to the "Contract
          Rate"  set  forth on Schedule  A.  Advances repaid  from the proceeds of the  Purchase Price for an Account shall continue to accrue interest  through  the Settlement Date of such  Account.  All such interest will 
          be payable by Client  to Goodman  monthly in arrears on the first day of each month. Notwithstanding the foregoing, from and after the occurrence of an Event of Default, all Obligations shall, at the election of Goodman, bear interest at a rate per annum equal to eighteen percent (18%)

          (the "Default Rate") and such interest shall be accrued daily and  payable  by Client to Goodman  upon demand.   All interest  hereunder may be
          charged by Goodman to the Reserve Account as an Advance as and when
          due.

     

    (b)          Select

          Fees. Client will pay to Goodman the fees set forth on Schedule A hereto. Such fees shall be fully earned, and may be charged by Goodman to the Reserve Account as an Advance, when due in accordance with such Schedule and shall not be subject to refund of any kind or pro-rated upon any termination of this Agreement.

     

    (c)          Computation of Interest and Fees. Interest and fees will be computed on the basis of a three hundred sixty (360) day year for the actual number of days elapsed.

     

    4.           Securitv Interest. As security  for the Obligations, Client hereby grants  to Goodman a continuing security interest in and lien upon all of the Collateral. Client shall take all actions requested by Goodman from time to time to cause the attachment, perfection and, except as Goodman may otherwise agree in writing, first priority of Goodman's security interest in the Collateral.   Client  irrevocably and
        unconditionally  authorizes  Goodman  (or  Goodman's  agent) to complete and file, at any time and from time to  time, such  financing statements with respect to the Collateral  naming Goodman  as  the secured  party  and Client as debtor,
        as Goodman may require, together with all amendments and continuations with respect thereto. Without limiting the foregoing, Client shall, al the request of Goodman with respect to each or any Deposit Account of Client, deliver to Goodman a deposit
          account control agreement, in form and substance satisfactory to Goodman, duly executed by Client and the financial institution at which such Deposit Account is maintained.

     

    
      5.            Representations and Warranties. Client hereby represents and warrants to Goodman that at all times:

    

     

    (a)          Organization.

          Qualification: Compliance with Laws: Authority. Client (i) is duly organized, validly
          existing and in good standing under the laws of the jurisdiction of its organization, (ii) is duly qualified to do business and is in good standing in each jurisdiction where its ownership of property or the conduct of its business requires such qualification, (iii) operates its business in material compliance  with all applicable local, state and federal laws, (iv) has all power and authority  under the laws of Client's jurisdiction of organization and its articles of organization to conduct Client's business and to enter into, execute and deliver this Agreement and  the
        Other Agreements and to  perform  its Obligations  hereunder and  thereunder
        and (v) has taken all necessary action to authorize the execution and delivery of this
          Agreement and the Other Agreements and the performance of its Obligations hereunder and thereunder.

     

    (b)          Solvency. Client  is solvent, is able to pay its debts as they  mature, 

        has capital sufficient

          to carry on its business and all businesses in which it is about to engage and the fair saleable value of its assets (calculated on a going concern basis) is in excess of the amount of its liabilities.

     

    (c)          Collateral. Client has good title to the Collateral, free and clear of all liens, claims and encumbrances other than those in favor of Goodman or with respect to which Goodman has consented in writing.

     

    
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    (d)          Accounts. Each
          Account submitted or sold by Client to Goodman  hereunder  (i) evidences  an absolute, bona fide sale of goods or rendition of services by Client in the ordinary course of  business, (ii) arises from the sale of goods or services that have been delivered or performed in full by Client and accepted in full by the Customer obligated thereon, (iii) is genuine, valid and

          enforceable against the Customer obligated thereon in the full amount set forth on the schedule and any invoice delivered by Client with respect to such Account, without ofTset, defense, counterclaim, deduction, credit, adjustment of any kind other than as disclosed by Client to Goodman in such schedule when such Account is first offered for sale by Client to Goodman hereunder, (iv) is not subject to Dispute (real or alleged) at
        the time such Account

          is first offered for sale by Client to
        Goodman hereunder, (v) is free and clear of all liens, claims or encumbrances other than in
        favor of Goodman or expressly permitted by Goodman in writing, (vi) is legally saleable and assignable by Client to Goodman; (vii) if arising from the sale of Inventory, such Inventory was owned by Client at all times prior to such sale and was not subject to any consignment arrangement,
          encumbrance, security interest or lien other than in favor of Goodman or as expressly permitted in writing by Goodman, and (viii) shall not be altered or modified without the prior written consent of Goodman.
        All invoices evidencing an Account submitted or sold by Client to Goodman hereunder, and all other documents delivered by Client to Goodman in connection therewith, are genuine and valid and are not mistaken, misleading, fraudulent. incorrect, incomplete or erroneous in any respect.

     

    
      6.           Covenants

    

     

    (a)          Certain

          Organizational Changes. Without giving Goodman at least thirty (30) days prior written notice, Client shall not (i) change Client's legal name, type of organization or jurisdiction of organization or (ii) chief executive office, mailing address or any location of Collateral. In addition, Client shall give Goodman prompt notice of, but in any event within five (5) days after, any change in any of the officers, principals, partners or owners of Client or any other Obligor.

     

    (b)          Certain Negative Covenants. Client shall not, at any time, (i) be party to a merger or consolidation or acquire all or substantially all of the assets of, or equity interests in, any Person or any divisions of any Person, (ii) grant or permit to exist

          any lien, security interest

        or encumbrance other than in favor of Goodman or with the written consent of Goodman. (iii) sell or dispose of any
        Collateral other than the sale of lnventory in the ordinary course of Client's business, (iv) use the proceeds of the Purchase Price for any purpose
      other than the repayment of Advances or for working capital purposes in the ordinary course of Client's business, (v) conduct business or engage in any transaction with an affiliate of Client except in the ordinary course of business upon fair and reasonable terms no less favorable to Client than Client would obtain in a comparable arm•s length transaction with an un affiliated Person and, in all events, provided the same is fully disclosed to Goodman in writing in advance, (vi) make loans or advances to any Person other than advances to employees for travel and entertainment expenses in the ordinary course of Client's business, (vii)
      sell Accounts to, factor Accounts with or obtain financing secured by Collateral from any Person other than Goodman or with the prior written consent of Goodman or (viii) engage in any business, other than its business as conducted on the EfTective Date of this Agreement and any activities incidental thereto. 

     

    (c)          Financial Statements: Collateral Reports. Client shall provide to Goodman the financial and other information set forth on Schedule B hereto, in form and detail satisfactory to Goodman, within the time periods set forth on such Schedule.

     

        

    (d)          Accounting

          Records: Inspections: Verifications. Client shall (i) maintain a system of accounting that enables Client to produce financial statements in accordance with GAAP, (ii) maintain complete and accurate records regarding the Collateral and (iii) permit Goodman and any
          Person designated by Goodman to, at any reasonable time, inspect, audit and examine the books and records of Client, make copies of the same, and inspect and appraise the Collateral and the other assets and properties of

          Client. Client authorizes Goodman to, in the name of Goodman or its nominee, communicate
          with any Customer of Client to verify the validity, amount or other matter relating to Accounts of Client.

     

    (e)          Disputes. Client shall promptly, but in any event within five (5) days after

          Client has knowledge of the same, notify Goodman of each Dispute. lf a Dispute is not promptly settled by Client, Goodman may, if Goodman so elects in Goodman's sole discretion, settle, compromise, adjust
          or otherwise dispose any such Dispute, whether by litigation or otherwise, at Client's expense
        and upon such terms and

          conditions as Goodman in its sole discretion shall deem necessary or appropriate. Client shall promptly advise Goodman if Client
          settles any Dispute or grants any allowances, credits or adjustments to Customers, changes the selling
        terms to be issued to any Customer or accepts any return of goods. Any Account that is unpaid at the expiration of the Eligibility Period shall, unless the Customer thereof is subject to an insolvency
          proceeding at or prior to the expiration of such Eligibility Period, be deemed in Dispute.

     

    (f)          Insurance. At Client's
          expense, Client shall maintain insurance with respect to such risks, in such amounts and with such insurance companies as ordinarily are insured against by other Persons engaged in the same or similar businesses and as are reasonably satisfactory to Goodman. Client shall, at the request of Goodman, cause Goodman to be named as an additional insured on all
        liability insurance policies of Client and as a lender's loss payee on all property insurance policies of Client, and deliver to Goodman such endorsements
        and certificates of insurance as Goodman may request with respect to Client's insurance policies.

     

        

    
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    (g)          Notice of Event of Default. Promptly, but in any event within five (5) days after Client has knowledge of any event or condition that constitutes an Event of Default, Client shall give Goodman notice of
          such event or condition and a statement of the curative action that Client proposes to take with respect thereto.

     

    (h)          Anti-Monev Laundering and Anti-Corruption. Client shall maintain and comply at all times, and cause each affiliate of Client to maintain and comply at all times. with all applicable laws or regulations relating to money- laundering, any predicate crime to money laundering, bribery or corruption.

     

    (i)          Taxes. Client shall pay and discharge all federal, state and local taxes (including payroll taxes)

          when due. Client shall, at the request of Goodman, furnish Goodman with proof of payment of all such taxes. Without limiting the foregoing, Client shall deliver to Goodman, at the request of Goodman, an Internal Revenue

        Service form 8821.

     

    (U)      Further  Assurances and  Cooperation.   Client shall, at Goodman's  request and Client's expense. execute and deliver (or
        cause to be executed and delivered) to Goodman such further instruments and do and cause to be done such further acts as may be necessary or proper in the
        opinion of Goodman to effectuate the provisions and purposes of this Agreement. Without limiting the foregoing, Client acknowledges, confirms and  agrees  that,  upon  Goodman's  request, Client shall cooperate and assist Goodman, at Client's expense, in connection with any effort by Goodman to (i) collect any Account or enforce any of Goodman's rights and remedies against third parties obligated on any Account or any other Collateral or (ii) defend any  claim or action commenced by any third party against Goodman in connection with Goodman's actions or the transactions hereunder.

     

    
      7.            Termination and Default.

    

     

    (a)          Term. This Agreement shall be effective commencing on the Effective Date and, unless sooner or otherwise terminated in accordance with the terms hereof, this Agreement shall remain in full force and effect for the "Initial Term" (as designated on Schedule A) and shall automatically  renew (and

          remain  in full force and effect) for successive "Renewal Terms" (as designated on  Schedule

            A) thereafter.    The Initial Term and each applicable  Renewal Term are collectively  referred  to herein as the "Term". Client  may elect to
          terminate this Agreement effective as of  the last day of  the  applicable  Term  by written  notice to Goodman no later than thirty (30) days prior to the expiration of such Term. Goodman may
          terminate this Agreement at any time upon at least thirty (30) days  prior written  notice to Client or  without  prior or other notice at  any time after the occurrence of an Event of Default.  All Obligations  hereunder shall become immediately due  and payable on the effective date of termination of this Agreement.   
          Notwithstanding any termination  of this Agreement, until such time as all Obligations shall have  been fully paid and satisfied in immediately available funds, this Agreement shall  remain  binding upon Client and, without limiting  the foregoing. all security interests and liens granted by Client in favor of Goodman

          hereunder shall remain in full force and effect.

     

    (b)          Events

            of Default. Any one or more of the following shall constitute an "'Event of Default" hereunder: (i) Client shall fail
          to pay any of the Obligations when due; (ii) any statement, representation or

          warranty made by any Obligor in this Agreement or  any Other Agreement, or  in connection with  the  transactions contemplated  hereby or  thereby,  shall be untrue, incorrect or  misleading  when made or during the  period covered  thereby; (iii) any breach or default  by any Obligor  in the performance of any covenant or other agreement of such Obligor in this Agreement or
          any Other Agreement; (iv) any corporate Obligor suspends or ceases operation of all or a material portion of such Obligor's business; (v) any breach or default by any Obligor under any document, instrument or agreement to which it is a party, or by which any of its properties are bound, if the maturity of any indebtedness of such Obligor may be accelerated or demanded

        due to such breach or default; (vi) there shall be issued or filed against any Obligor any judgment,
          order or award for the payment of money unless the same is discharged, satisfied, vacated or bonded pending appeal within fifteen (15) days after such issuance or filing; or enforcement proceedings are commenced upon any
          such judgment, order or award; (vii) a corporate Obligor is
          enjoined, restrained or in any way prevented by any governmental authority  from conducting  any  material  part of  its business; (viii)  any Obligor becomes insolvent, becomes  unable to pay its debts as they mature or  makes an assignment for the 

        benefit of creditors;

          a receiver is appointed  for any of the Collateral; or a petition under any provision of Title 11 of the United States Code, as amended or modified from time to time, is filed by or against any Obligor (a "Specified Default"); (ix) any Obligor that is a natural Person shall die or be declared incompetent; or the dissolution, merger or consolidation of any corporate Obligor; (x) any Obligor shall challenge the validity, enforceability or effectiveness of, terminate, seek or purport to seek, 

        termination of  this Agreement or  any Other Agreement; or (xi) from and  after the Effective  Date, the sale, transfer, or exchange, either directly or  indirectly, of  more than ten
          percent ( I0%)  in the aggregate of the equity interests in any corporate Obligor.

     

    (c)          Remedies. At any time after the occurrence of an Event of Default, Goodman may: (i) declare the Obligations to be  immediately

          due and payable, at which time such Obligations shall be immediately  due and
          payable and Client shall be obligated  to immediately  repay all of such Obligations in full; (ii) set off against, and appropriate and apply to the payment of the Obligations, any and all amounts owing by Goodman to Client and (iii) exercise any or all rights, powers and remedies available hereunder or under the Other Agreements, or accorded by law or equity, in each case, without presentment, demand, protest, notice of dishonor, or other notice of any kind, all of which are hereby expressly waived by Client. Notwithstanding the foregoing or anything to the contrary herein, immediately upon the occurrence of

        a Specified Default, all Obligations shall be automatically accelerated and this Agreement shall be automatically terminated, without notice or further action of any kind. Without limiting  the generality of  the foregoing, at any time after the occurrence of an Event of  Default, Goodman  shall  have all the rights and remedies of a secured party under the UCC and other applicable laws with respect to all Collateral, including the right to sell or cause to be sold any or all of such Collateral, in one or more sales or parcels, at such prices and upon such terms as Goodman shall elect, for cash or on credit or for future delivery,
        without assumption of any credit risk, and at a public or private sale as Goodman may deem appropriate. After application to

          the Obligations of the proceeds of any such sale or disposition of Collateral, Client shall remain liable for any deficiency.

     

        

    
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    8.           Indemnification and Taxes. Client hereby indemnifies and holds Goodman and its affiliates, subsidiaries,

        directors, officers, employees, representatives and agents (Good and all such Persons referred to herein each individually as an "Indemnified Person" and collectively as the "Indemnified Persons") harmless from and against any and all  suits, actions, proceedings, claims, damages, losses, liabilities and expenses of every kind and  nature  (including  attorneys'  costs, fees and expenses) which may be instituted or asserted against or incurred by
          any such Indemnified Person with respect to the execution. delivery, enforcement, performance or administration of, or in any other way arising out of or  relating to, this Agreement or  any Other Agreement, and any actions or inactions with respect to any of the foregoing, except to the extent that any such indemnified liability is determined  pursuant to a final, non-appealable order issued by a court of competent  jurisdiction to have resulted solely from such Indemnified Person's gross negligence or willful
          misconduct.   No Indemnified Person shall be responsible or liable to Client or to any other party for indirect,  punitive, special, exemplary
        or consequential damages which may be alleged as a result of any advance or other financial accommodation having been extended, denied, delayed, conditioned, suspended or

          terminated under this Agreement or any Other Agreement or as a result of any other event or
          transaction contemplated hereunder or thereunder. In addition,
        if any tax or fee by any governmental authority (other than income and franchise taxes owing by Goodman) is or may be imposed on or as a result of any transaction between Client and Goodman, or in respect to sales or the goods affected by such sales, which Goodman is or  may be required  to withhold  or pay, Client  acknowledges sole responsibility  for such  fee or  tax and agrees to indemnify and hold Goodman harmless in respect of such taxes.  Client will pay to Goodman, upon Goodman•s demand, the amount of any such taxes, which shall be charged to the Reserve Account as an
          Advance.

     

        

    9.          Costs

            and Expenses. Client shall pay to Goodman all costs, fees
        and expenses, including attorneys' and other professionals" costs, fees and expenses, incurred by Goodman in connection with the preparation, execution, delivery, administration or enforcement of this Agreement or any Other Agreement, or the filing or
          perfecting of any security interest of Goodman in any
          Collateral. In addition, Client shall also reimburse Goodman for all costs, fees and expenses incurred by Goodman, including attorneys' and professionals' costs, fees and expenses, in connection with: (i) obtaining or enforcing payment or performance of any Obligation;
          (ii) the prosecution or defense of any action or proceeding concerning any matter arising out of or connected with this Agreement, any Other Agreement or any of the Collateral; (iii) any action or effort to inspect, appraise, examine, verify, protect, collect, sell, liquidate or otherwise dispose of any Collateral, including all costs incurred or payable in connection with periodic field examinations at such rates as shall be charged by Goodman to its clients
          from time to time. Client shall also pay to Goodman its standard and customary fees relating to bank services, wire transfers, special or additional reports, remittance expenses (including, without limitation,  incoming  wire charges, currency conversion fees and stop payment fees), and other services at such rates as shall be charged by Goodman to its clients from time to time. All such costs, fees and expenses, together with all filing, recording and search fees and taxes payable by Client to Goodman, shall be payable on
          demand and may be charged by Goodman to the Reserve Account as an Advance.

     

    I0.          Miscellaneous Provision.

     

    (a)          Power of Attorney.  Client hereby appoints Goodman as Client's attorney-in-fact to (i) receive, open and dispose of all mail addressed to Client but received by Goodman, (ii) upon or after the occurrence of an Event of Default, notify Post Office authorities to change the address for delivery of mail addressed to the Client to such address as Goodman may designate,

    (iii) endorse Client's name upon any notes, acceptances, checks, drafts, money orders, remittances and other items
        of payment of Accounts that come into Goodman's possession and
        to deposit or otherwise collect the same and (iv) upon or  after the occurrence of an Event of Default, do all other acts and things necessary to carry out  the terms of this Agreement. This power, being coupled with an interest, is irrevocable while this
      Agreement remains in effect or any Obligations remain outstanding. Goodman, as attorney-in-fact, shall not be liable for any errors of judgment or mistake of fact.

     

    (b)          Waivers  by Client.  Client waives any right to  require Goodman  to (i)  proceed against any Obligor or other Person, (ii) marshal assets or proceed  against or exhaust any security  from any Obligor or any other Person, (iii) perform any obligation
        of any Obligor with respect to any Collateral and (iv) make any presentment or demand, or give any notice of nonpayment or
          non performance, protest, notice of protest or notice of dishonor hereunder or  in connection with the Obligations or any Collateral. Client further waives any  right to  direct the application of  payments

          or security for any Obligations of any  Obligor or
          indebtedness of customers of any Obligor.

     

    (c)          Governing

          Law: Jurisdiction. The
        validity, construction and effect of this Agreement and, except as otherwise expressly stated therein,

          of the Other Agreements shall be governed  by, construed and
        enforced  in accordance with the laws of the State of Texas, without regard to conflicts of laws principles.

        Each of Client and Goodman hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of the state courts of Texas sitting in Dallas County and of the United States District Court for the Northern
          District of Texas, and any appellate court from any thereof, in any action or proceeding arising out of or  relating to  this Agreement, or for recognition or enforcement of  any judgment,  and each of Client and Goodman hereby irrevocably and unconditionally agrees that all claims in respect of  any such action or  proceeding shall be heard and determined in such state court or, to the fullest extent permitted by applicable law, in such federal court; provided, that Goodman may bring any action or proceeding against any Obligor relating to  this Agreement,  the Other Agreements or  the Collateral in the courts of any jurisdiction. Each of Client and Goodman irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that
          it may now or hereafter have to the laying of  venue of  any action or proceeding arising out of or relating to this Agreement in any court referred to in this Section. Each party hereto hereby irrevocably waives, to the fullest extent permitted by applicable law, the defense of inconvenient forum to the maintenance of such action
          or proceeding in any such court.

     

    
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    (d)          WAIVER

          OF JURY TRJAL. GOODMAN AND CLIENT DO HEREBY WAIVE ANY AND ALL RJGHT TO  A TRIAL BY JURY IN ANY ACTION OR PROCEEDING OF ANY
          KIND ARJSING ON, OUT OF, BY REASON OF, OR RELATING IN  ANY WAY TO, THIS AGREEMENT OR THE INTERPRETATION OR ENFORCEMENT  THEREOF OR TO ANY TRANSACTIONS HEREUNDER.

     

        

    (e)          USA

          Patriot Act. Client shall provide and shall cause its affiliates to provide such information and take such actions as requested by Goodman from time to time in order to assist Goodman in maintaining compliance with all applicable "know your customer" and anti-money laundering rules and regulations, including the Patriot Act.

     

    (f)          No

            Waiver of Rights. No failure or delay by Goodman in exercising any of its powers or rights hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such power or right preclude other or further exercise thereof or the exercise of any other right or power. Goodman's rights, remedies and benefits hereunder are cumulative and not exclusive of any other rights, remedies or benefits which Goodman may have. No waiver by Goodman will be effective unless

          in writing and then only to the extent specifically stated.

     

    (g)          Notices. All notices, requests and demands which any party is required or may desire to give to any other party under any provision of this Agreement must be in writing delivered to each party at the address for such party set forth below each party's name on the signature

        pages of this Agreement or to such other address as any party may designate by written notice to all other
          parties. Each such notice, request and demand will be deemed given or made as follows: (i) if sent by hand delivery or overnight courier, upon
        delivery; (ii) if sent

        by mail,  upon the earlier of the date of receipt or  three (3) days after deposit in the U.S. mail, first class and postage prepaid; (iii) if sent by telecopy, upon receipt; and (iv) if sent by electronic mail, upon sender's receipt of an acknowledgment from the intended  recipient (such as by "return  receipt requested" function, as available. return email or other written acknowledgment).

     

    (h)          General. This Agreement will be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns; provided that Client may  not assign or 
          transfer any of its  interests,  rights or  obligations under this Agreement without Goodman's prior written consent. This
          Agreement sets forth the entire understanding of the parties with respect to the matters set  forth 

          herein and supersedes  in their entirety any  and all  understandings and agreements, whether  written or oral, of the parties with respect to the foregoing.  This Agreement cannot be changed, modified or amended  in any respect except by a writing executed  by the party to  be charged. This Agreement  is made and entered  into  for the sole  protection and  benefit of

        the parties hereto and their respective permitted successors and assigns, and no other
          Person will be a third party beneficiary of, or have any direct or indirect cause of action or claim in connection  with, this Agreement.   If any provision of this Agreement is found to be unenforceable or otherwise invalid under applicable law, such provision shall be
          ineffective only to the extent of such invalidity and the  remaining  provisions of  this Agreement shall remain  in  full force and effect.

        This Agreement  may  be executed in counterparts, each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed signature page by telecopy or electronic mail shall be effective as delivery of a manually executed counterpart of this Agreement. Each sale of  an Account  to  Goodman  under this Agreement is an "Account Purchase  Transaction" as defined by Section
        306.001(1) of the Texas Finance Code and is subject to such subtitle of the Texas Finance Code.

     

    (i)          Savings

          Clause. No provision of this Agreement or of any Other Agreement shall require the payment or the collection of interest in excess of the maximum amount permitted by applicable law. In the event Goodman ever receives, collects or applies as  interest  hereunder or  under any Other Agreement  any amount in excess of the maximum  amount  permitted by applicable law, such excess shall be applied as a payment and reduction of the principal of the Obligations of Client and, if the principal of such Obligations

          has been paid in full, any remaining excess shall be paid to Client. In
          determining whether or not the interest paid or payable exceeds the maximum rate permitted  by applicable  law, Client and Goodman  shall, to the extent permitted by applicable law, including Section 306.00I (I)

          of  the  Texas Finance Code, (i) characterize any non-principal payment as an expense,

        fee, or premium  rather than as  interest, (ii) exclude voluntary prepayments and the effects thereof, and (iii) amortize, prorate, allocate, and spread in
        equal or unequal parts the total amount of interest throughout the entire contemplated term of this Agreement so that interest for the entire term does not exceed  the maximum rate permitted  by law.   If at any time the  interest rate set forth in this Agreement or any Other Agreement exceeds the maximum interest rate allowable under applicable law, the interest rate will be deemed to be such maximum interest rate allowable under applicable law.

     

    (j)          Multiple

          Clients. Each Client acknowledges that the successful operation and condition of each Client individually is dependent on the successful operation and condition of all Clients collectively. Each Client further acknowledges that it expects to derive benefit from the successful operation and condition of each other Client and from any Advances or financial accommodations
          extended by Goodman to each or any other Client. Each Client agrees that it is jointly and severally liable for, and absolutely and unconditionally guarantees to Goodman the prompt
          payment and performance of, all Obligations. Each Client agrees that its guaranty obligations hereunder constitute a continuing guaranty of payment and not of collection,

        that such obligations

        shall not be discharged until cash payment in full of the Obligations, and that such obligations are absolute and  unconditional,
          irrespective of any action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor, except cash payment in full of all Obligations. Each Client agrees that it will not enforce any of its rights of contribution or

        subrogation against any olher Client with respect to any liability incurred by such Client hereunder or under any Other Agreement, any payments  made by it to  Goodman  with respect to any of the Obligations or any collateral
          security until such time as all of the Obligations have been paid in full in cash. Each reference to

        Client means each
          Client individually and all Clients collectively.

     

    
      6

      
        

    

    11.         Definitions.

     

    Unless otherwise defined herein, the following terms are used herein as defined in the UCC: Accounts, Account Debtor, Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, Equipment,
      General Intangibles, Goods, Instruments, Inventory, Investment Property, Letter-of-Credit Rights, Proceeds and Supporting Obligations.

     

    As used in this Agreement, the following terms have the following meanings:

     

    "Advance Rate" means 100% less the Reserve Percentage.

     

    ''Business Day" means any day other than a Saturday, Sunday or
        other day on which factors or commercial banks are authorized or required to close by law or under to the rules and regulations of the Federal Reserve System.

     

    "Collateral" means, collectively. all of Client's existing and hereafter acquired (a) Accounts,

      Chattel Paper, Commercial Tort Claims, Deposit Accounts, Documents, General Intangibles, Goods (including Inventory and

      Equipment), lnstruments. Investment
        Property, Letter-of-Credit Rights and Supporting Obligations, (b) reserves, matured funds, credit balances and other property of Client in Goodman's possession, (c) Records and (d) insurance policies and Proceeds of any
        or all of the foregoing.

     

    "Credit Risk'' means the risk of loss on an Account resulting solely and exclusively from the financial inability of the applicable Customer to pay the Account in full when due.

     

    "Customer" means a Person that purchases goods or services from Client.

     

    "Dispute"
        means any reason (regardless of merit) for nonpayment of an Account,
      including any alleged offset, defense or counterclaim.

     

    "Effective

        Date" means the date designated by Goodman as 1he '•Effective Dale" as sci forth below Goodman's signature block on the signature page of1his Agreement

     

    "Formula Amount" means an amount equal to (a) the Advance Rate multiplied by the gross

      amount of Accounts deemed eligible by Goodman, in its sole discretion, for borrowing purposes less (b) such reserves as it deems necessary as security
      for the payment and performance of the Obligations, to enhance the likelihood of repayment

      of the Obligations or to reflect events, conditions, contingencies or risks which might adversely affect the Collateral or the business of Client. In no event shall any Account be eligible for borrowing purposes or included
      in the Formula Amount if such Account is for any reason unpaid upon expiration of the ''Eligibility Period"
      set forth on Schedule A, subject to payment terms in excess of  maximum terms from time to time established by Goodman in its discretion, subject to Dispute or charged

        back to Client in accordance wilh the terms hereof.

     

    "Funding Date" means, with respect to any Account that is at any time included in the Formula Amount, the

        date on which such Account

      is first included in such Formula Amount.

     

    "Obligations" means all Advances, debts, liabilities, obligations, guaranties, covenants, duties and indebtedness of every nature at any time owing by Client to Goodman, whether evidenced 

      by or  arising under this Agreement,  the Other Agreements or any note or other instrument or document, whether arising by law or otherwise, whether arising from an extension of credit, loan, guaranty, indemnification or otherwise, whether direct or indirect, absolute or contingent, due or to

      become due, contractual or tortious, liquidated or unliquidated, now existing or here afler arising (whether before or after the filing of any petition in bankruptcy by or against Client or the commencement of any other insolvency proceedings with respect to Client) including all interest,

      charges, expenses, fees, attorney's
        fees, consultant's fees, expert witness fees, field examination fees,
      loan fees, termination fees, minimum interest charges and any other sums chargeable to Client or incurred
      by Goodman under or in connection with this Agreement, the Other Agreements or the
        transactions contemplated hereby or thereby.

     

    "Obligors" means, collectively, Client
        and any Person who now or hereafter executes in favor of  Goodman a guaranty of the prompt payment and performance payment of the Obligations.

     

    "Other Agreement" means any agreement, guaranty,

        mortgage, note, instrument or document executed or delivered pursuant hereto or

      in connection with this Agreement.

     

    "Person" means a natural person, corporation, limited liability company, limited partnership, general partnership, limited liability partnership, joint venture, trust, land trust, business trust or other organization, irrespective of whether it is a legal entity, or a government or agency or political subdivision thereof, and any reference herein to any Person shall be construed to include such Person's
      successors and assigns.

     

    
      7

      
        

    

    "Purchase

        Price" means, for any Account purchased under this Agreement, the gross amount of such Account determined by Goodman at the time such Account is first offered for sale to Goodman hereunder by delivery from Client to Goodman of a schedule for such Account

        in accordance with the terms hereof.

     

    "Prime Rate" means the greater of (a) 0% per annum and (b) the rate published from time to time by The Wall Street Journal as the "Prime Rate" or, if at any  time or for any  reason such rate is not published, such rate  from time  to  time  announced by Independent Bank
        as its "Prime Rate". Each change in the rate of interest will become effective on the date each Prime Rate change is published or announced, as the case may be.

     

    "Reserve Account" means a ledger (or book-entry) account maintained by Goodman on its books and records in the name of Client.

     

    "Settlement Date" means, for each Account, two (2) Business days after the Business Day on which payment of such

     

    Account is posted by Goodman

      to the Reserve Account; provided, that if the Customer of a Non-Recourse Account for which the Settlement Date has not already occurred is subject to an insolvency proceeding at the expiration of the Eligibility Period for such Non-Recourse Account, the Settlement Date
        for such Non-Recourse Account shall be the
        Business Day following receipt by Goodman of the written acknowledgment of such Customer that no Dispute exists or the entry of an order by the court having jurisdiction over such insolvency proceeding that no Dispute exists.

     

    "UCC" shall mean the Uniform Commercial
        Code as in effect from time to time in the State of Texas. 

    

     

      

    
      [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

        

       

        

      
        8

        
          

      

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the Effective Date.

       

    

    
      GOODMAN:

       

      INDEPENDENT BANK,

      acting through its Goodman Capital Finance division

       

        

      
        	By

              	
                 

              	 
	Name

              	 	 
	Title	 	 

        

          
            Address:

            Goodman Capital Finance,

            30 IO LBJ Freeway, Suite 540

             Dallas, TX 75234

              

             
              	 Attention:	
                       

                    	 

            

            
              	
                      Fax No:

                    	(972) 243-6285

                    	 

            

            
              	
                      Email:

                    	
                       

                    	 

            

            Effective Date:June 17 ,2021

              

          

        

      

    

    
      CLIENT:

      
        

        

        SANUWAVE, INC.

        

        

        	By:

              	/s/ Kevin Richardson, II	 

        	Name:

              	Kevin Richardson, II	 
	Title:	CEO

              	 

         

        

        
          	By:

                	/S/ Lisa Sundstrom 	 

          	Name:

                	Lisa Sundstrom 	 
	Title:	CFO

                	 

        

         

        

         SANUWAVE HEALTH, INC.

         

        

        
          	By:

                	/s/ Kevin Richardson, II	 

        

        
          	Name:

                	Kevin Richardson, II	 
	Title:	President	 

        

         

        

        
          	By:

                	/s/ Lisa Sundstrom 	 

        

        
          	Name:

                	Lisa Sundstrom 	 
	Title:	Secretary	 

        

         

        

        
          Address:

          3360 Martin Farm Rd., Suite 100

          Suwanee, GA 30024

          Attention: Kevin Richardson, II

          Email: info@sanuwave.com

        

      

    

    

    

    
      [Signature Page to Factoring Agreement}

       

      

    

    
      
        

    

    SCHEDULE A TO 

    FACTORING AGREEMENT

     

    	 	
            Reserve 

            Percentage:

          	 	
            13.75%

          
	 	
            Contract Rate:

          	 	
            NA

          
	 	
            Eligibility Period

          	 	
            With respect to any Account, the earlier of 46 days from the original due date thereof or  90 days from the invoice date thereof.

          
	 	
            Initial Term:

          	 	
            I month, commencing upon the Effective Date.

          
	 	
            Renewal Term:

          	 	
            I month.

          
	 	
            Facility 

            Maximum:

          	 	
            $3,000,000

          
	 	
            Fees:

          	 	
            (a)          Initial Commissions. With respect to each Account of Client that is at  any time included in the
                Formula Amount, Client shall pay to Goodman a commission (with respect to each Account, the "Initial Commission") equal to 1.25% multiplied
                  by the gross amount of such Account.  The Initial Commission for an Account shall be due and payable on the Funding Date for such Account.

             

            (b)          Additional Commissions. In the event an  Account  remains unpaid  (in whole or in part) on the 30th day following the Funding  Date, Client
                shall pay to Goodman, on such 30th day and on each I day thereafter
                  that such Account remains unpaid, an additional
                  commission (with respect to each Account, the "Additional Commission") equal to 0.04% multiplied by
                the gross amount of such Account as of the Funding Date. For purposes of determining Additional
                  Commissions, an Account shall be deemed to remain unpaid until the Settlement Date of such Account.

             

            (c)          Misdirection  Fee.  Goodman may charge to Client a misdirected  payment fee in the amount of fifteen percent (15%) of the amount of any check, remittance
                  or other item of payment constituting a payment of an
                Account which is received by an Obligor and not deposited into the Collection Account on the next Business Day following receipt by such Obligor.

             

                

          

     

    

    
      
        

    

    SCHEDULE B TO

     FACTORING AGREEMENT

     

    	
            on request of Goodman:

          	
            (a)

          	
            such other information as Goodman may request from time to time.Exhibit 10.3

  

  
    

    

    FUTURE RECEIVABLES AGREEMENT

     

    This FUTURE RECEIVABLES AGREEMENT (this "Agreement"), dated September 27, 2021, is made by and between GCF Resources LLC, ("GCF") and SANUWAVE,

        INC. ("Merchant)".

     

    
      	
              Merchant's Legal Name: SANUWAVE, INC. 

              DBA Name: SANUWAVE

              Legal Entity: Corporation

              Address:  3360 MARTIN FARM RD #100

            	
               

                

               

                

               

                

              City: SUWANEE

            	
               

                

               

                

               

                

              State: GA

            	
               

                

               

                

               

                

              Zip: 30024

            
	 	 	 	 

    

     

    

    PURCHASE AND SALE OF FUTURE RECEIVABLES

     

    

    Merchant hereby sells, assigns and transfers to GCF (making GCF the absolute owner) in consideration of the purchase price specified below (the Purchase Price), the specified percentage specified below (the Specified  Percentage) 

        of  all of Merchant's future accounts, contract  rights

      and other entitlements  arising from or relating to  the payment  of monies from Merchant's customers 'and/or other third party payors (collectively, the "Receipts", including all payments made by cash, check, electronic transfer or other form of monetary payment in the ordinary course of the  Merchant's business), for  the  payments

      due to Merchant as a result of Merchant's sale of goods or services (the "Transactions") until the receipts purchased amount specified below (the Purchased Amount) has been delivered by or on behalf of Merchant to GCF. Merchant hereby acknowledges and agrees that GCF may elect, in

        its sole discretion, to pay to Merchant a percentage of the full Purchase Price specified below. If GCF elects to pay to Merchant less than the full Purchase Price specified below then the amount actually paid by GCF shall be deemed the Purchase  Price for  purposes of  this transaction notwithstanding the Purchase Price specified below and the Purchased Amount shall automatically be reduced proportionately notwithstanding the Purchased amount specified below.

        By signing this Agreement, Merchant expressly consents to be bound to the terms of this Agreement whether GCF, in its sole discretion, elects to pay the full Purchase Price specified

      below or a percentage thereof. Merchant further acknowledges that if GCF elects to pay a percentage of the full Purchase Price specified below, that such payment shall not be deemed a default under this Agreement, and
      that all other terms and conditions, specifically including but not limited to the Daily Amount, shall remain in effect

        except as otherwise provided herein. The Purchased Amount shall be paid to GCF by...in consideration of the purchase price specified below (the Purchase Price), the specified percentage specified below (the Specified Percentage) of all of Merchants...until the receipts purchased amount specified below (the Purchased Amount) has been delivered by or on behalf of Merchant to GCF. Merchant
        hereby acknowledges and agrees that GCF may elect, in its sole discretion, to pay to Merchant a percentage of the full Purchase Price specified below. If GCF elects to pay to Merchant less than the full Purchase Price specified below then the amount actually paid by GCF shall be deemed the Purchase Price for purposes of  this transaction notwithstanding the Purchase Price specified below and the Purchased Amount shall automatically be reduced proportionately notwithstanding the Purchased Amount specified below. By signing this Agreement, Merchant expressly consents to  be bound to the terms of this Agreement

        whether GCF, in  its  sole discretion, elects to pay the 
        full Purchase Price specified below or a percentage thereof. Merchant further acknowledges that if GCF elects to pay a
        percentage of the full Purchase Price specified below, that such payment shall not be deemed a default under this 
      Agreement,  and that all other  terms and conditions, specifically  including but  not  limited  to the Daily Amount, shall remain  in effect except as otherwise provided herein. The Purchased Amount shall be paid to GCF by...paid to GCF by Merchant's irrevocably directing and authorizing that there be only one depositing bank account, which account must be acceptable to, and pre-approved by, GCF (the "Account") into which Merchant and Merchants customers shall remit

        the Specified Percentage of the Merchants settlement
        amounts due from each Transaction, until such time as GCF receives payment in full of thePurchased Amount.
        Merchant hereby authorizes GCF to ACH Debit the Daily Amount (as specified below) from the Merchants Account on a daily basis and will provide GCF with all required

      access codes, and monthly bank statements. Merchant understands that it is responsible for  ensuring that the specified  percentage  to  be debited by GCF remains in the  Account and will be held responsible for any fees incurred by GCF resulting from a rejected ACH attempt or an

      event of default. (See Appendix  A) GCF is not  responsible
        for  any overdrafts or rejected transactions that may result from GCF ACH debiting the specified amounts under the
        terms of this agreement. GCF will debit the specific daily amount each business day. The Merchant shall deliver to GCF, no later than the 18th date of each month the bank statement for the  Account in respect of  the 
        immediately  preceding month. Within three business  days of 

      GCF receipt of the Merchants monthly bank statements, GCF shall reconcile the  Merchants  Account  by either crediting or debiting the difference  from or back to  the  Merchants Account  so that the amount debited per month equals the  Specified  Percentage. If  the  Merchant
        fails to  deliver the  bank statement for  the Account for  any month, GCF shall consider that the specific remittances  were equal to the Specified Percentage of  the  settlement amount due from each Transaction for  such month. GCF
        may, upon Merchants request, adjust the amount of any payment due under this Agreement at GCF sole discretion 
      and as it  deems appropriate.  Notwithstanding anything to  the contrary  in this Agreement  or  any other agreement
        between GCF and Merchant, upon the violation of any provision

        contained in Section 1.11 of the MERCHANT AGREEMENT TERMS AND CONDITIONS or the occurrence of an Event of Default under Section 3 of the MERCHANT AGREEMENT TERMS AND CONDITIONS, the Specified percentage shall equal 100%. A list of all fees applicable under this Agreement is contained in Appendix A. For the avoidance of any doubt, each party to
        this Agreement acknowledges, agrees and understands that the transaction contemplated by this Agreement is a purchase and sale of future receivables and not a loan, and no party hereto intends for this Agreement to be, or to be deemed to be, a loan agreement. Accordingly, there is no interest payable  hereunder  and no mandated date on which amounts hereunder are due. Furthermore,  the failure of the Merchant to  make sales and the Merchant going out of business or bankrupt is, in and of itself, not an Event of Default under this Agreement. These are risks assumed by GCF. Neither the Merchant nor any affiliate of the Merchant, directly or indirectly, shall assert or attempt to assert at any time and in any forum that this Agreement is a loan agreement or that the transactions contemplated hereby are or should be characterized as loans.

     

    	
            Purchase Price

            $1,000,000.00

          	
            Specified Percentage

            10%

          	
            Estimated Daily Amount

            $11,834.00

          	
            Receipts Purchased Amount

            $1,420,000.00

          

    

    

    THE TERMS AND CONDITIONS, THE "SECURITY AGREEMENT AND GUARANTY" AND THE "AUTHORIZATION AGREEMENT" ATTACHED HERETEO, ARE ALL HEREBY INCORPORATED IN AND MADE A PART OF THIS AGREEMENT.

     

    	
            MERCHANT

          	 	 	 
	
            BY: KEVIN A RICHARDSON II

          	
            X

          	/s/ KEVIN A RICHARDSON II	 	

          
	

          	
            (SIGNATURE)

          	 	
            9/27/2021

          
	
            CEO #1: KEVIN A RICHARDSON II

          	
            X

          	/s/ KEVIN A RICHARDSON II	 	 	 
	

          	
            (SIGNATURE)

          	 	
            (DATE)

          
	 	 	 	 
	
            CEO#2:

          	
            X

          	

          	 	 
	

          	

          	 	
            (DATE)

          	 
	
            GCF Resources LLC

          	
            (SIGNATURE)

          	 	 
	
            BY:

          	
            X

          	

          	 	 
	
            (COMPANY OFFICER)

          	
            (SIGNATURE)

          	 	 

    

    

    
      
        	
                1

              	
                
                  Merchant Initial 

                

              

      

      
        

    

    
      
        TERMS AND CONDITIONS

         

        
          I. TERMS OF ENROLLMENT IN PROGRAM

        

         

        
          1.1          Merchant Deposit Agreement. Merchant shall execute an agreement (the "Merchant Deposit Agreement") acceptable to GCF with a Bank acceptable to GCF to obtain electronic fund transfer services for the Merchant's account at the

              Bank approved by GCF (the "Account"). Merchant shall provide GCF and/or its authorized agent(s) with all of the information, authorizations and passwords necessary for verifying Merchant's receivables, receipts, deposits and withdrawals into and from the Account.
              Merchant hereby authorizes GCF and/or its agent(s) to
              deduct from the Account the amounts owed to GCF for the receipts as specified herein and to pay such amounts to GCF. Merchant also hereby authorizes GCF to withdraw from
              the Account the specified percentages and/or sums by GCF
              debiting the account. These authorizations apply not only to the approved Account but also to any
              subsequent or alternate account used by the Merchant for these deposits, whether pre-approved by GCF or not. This additional authorization is not a waiver of
              GCF entitlement to declare this Agreement breached by Merchant as a result of its usage of an account that GCF did not first pre-approve in writing prior to Merchant's usage thereof. The aforementioned authorizations
              shall be irrevocable without the written consent of GCF.

           

            

        

        
          1.2      Term of Agreement. This Agreement shall remain in full force and effect until the entire "Purchased Amount" is received by GCF as per the terms of this Agreement, however, at any point during the term of this
              Agreement, Merchant may terminate this Agreement upon ninety days 'prior written notice (effective upon actual receipt) to GCF. The termination of
              this Agreement shall not affect Merchant's continuing obligation

              and responsibility to fully satisfy all outstanding obligations that are due to GCF simultaneous with the Notice of termination.

           

            

        

        
          1.3           Future Purchases. GCF reserves the right to rescind the offer to make any purchase
              payments hereunder, in its sole and absolute discretion.

           

            

        

        
          1.4          Financial Condition. Merchant and Guarantor(s) (as hereinafter defined and limited)
              authorize GCF and its agents to investigate their financial responsibility and history, and will provide to GCF any authorizations, bank or financial statements, tax returns, etc., as GCF deems necessary in its sole and absolute discretion prior to  or at any time after execution of  this Agreement. A photocopy of this authorization will be deemed as acceptable as an authorization for release of financial and
              credit reporting information. GCF is authorized to update such

            information and financial and credit profiles from time to time as it deems appropriate.

           

            

        

        
          1.5           Transactional History. Merchant authorizes

              all of their banks and brokers to provide GCF with Merchant's banking, brokerage and/or processing history to determine qualification or continuation in
              this program.

           

            

        

        
          1.6           Indemnification. Merchant and Guarantor(s) jointly and severally indemnify and hold harmless Processor, its officers, directors and shareholders against all losses, damages, claims, liabilities and expenses (including reasonable attorney's fees) incurred by Processor resulting from (a)
              claims asserted by GCF for monies owed to GCF from Merchant and (b) actions taken by Processor in reliance upon any fraudulent, misleading or deceptive information or instructions provided by GCF.

           

            

        

        
          1.7          No Liability. In no event will GCF be liable for any claims asserted by Merchant or Guarantors under any legal theory for lost profits, lost revenues, lost business opportunities, exemplary, punitive, special, incidental, indirect or consequential damages, each of  which is waived by both Merchant and
              Guarantor(s). In the event these claims are nonetheless raised, Merchant and Guarantors will be jointly liable for all of GCF legal fees and expenses resulting there from.

           

            

        

        
          1.8           Reliance on Terms. Section 1.1, 1.7, 1.8 and 2.5 of this Agreement are agreed to for the benefit of Merchant, GCF and Processor, and notwithstanding the fact that Processor is not a party of this Agreement, Processor may rely upon
              their terms and raise them as a defense in any action.

           

            

        

        
          1.9        Sale of Receipts. Merchant and GCF agree that the Purchase Price
              under this Agreement is in exchange for the Purchased Amount, and that such Purchase Price is not intended to be, nor shall it be construed as a loan from GCF to Merchant. Merchant agrees that the Purchase Price is in exchange for the Receipts pursuant to this Agreement, and that it equals the fair market value of such Receipts. GCF has purchased and shall own all the Receipts described in this Agreement up to the full Purchased Amount as the Receipts are created. Payments made to GCF in respect to the full amount of the Receipts shall be conditioned upon Merchant's sale of products and services, and the payment therefore by Merchant's customers in the  manner provided in Section 1.1. In no event shall the aggregate of all amounts or any portion thereof be deemed as interest hereunder, and in the event it is found to be interest despite the parties hereto specifically  representing that it is NOT interest,
              it shall be found that no sum charged or collected
              hereunder shall exceed the highest rate permissible at law.

              In the event that a court nonetheless determines that GCF has charged or received interest hereunder in excess of the highest applicable rate, the rate in effect hereunder shall automatically be reduced to the maximum rate permitted by applicable law and GCF
            shall promptly refund to Merchant any interest received by GCF in excess of  the  maximum lawful rate, it being intended that Merchant not pay or
              contract to pay, and that GCF not receive or contract to receive, directly or indirectly in any manner whatsoever, interest in excess of that which may be paid by Merchant under applicable law. As a result thereof, Merchant knowingly and willingly waives the defense of Usury in any action or proceeding.

        

      

      
        1.10          Power of
              Attorney. Merchant irrevocably appoints GCF 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 GCF from Processor, or in the case of a violation by Merchant of Section 1.12 or the occurrence of an Event of Default under Section 3.1 hereof, from Merchant, under this Agreement, including without limitation (i) to obtain and adjust insurance; (ii) to collect monies due or to become due under or in respect of any of the Collateral; (iii) to receive, endorse and collect any checks, notes, drafts,
              instruments, documents or chattel paper in connection  with clause (i) or clause (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 GCF; and (v) to file any claims
              or take any action or institute any proceeding which GCF
              may deem necessary for the collection of any of the unpaid Purchased Amount from the Collateral, or otherwise to enforce its rights with respect to payment of the Purchased Amount. In connection therewith, all costs, expenses and fees, including legal fees, shall be payable by and from Merchant,
            and GCF is authorized to use Merchant's funds to pay for the same.

         

            

        1.11          Protections 

              against Default. The following Protections  1 through 7 may be invoked by GCF
              immediately and without notice to Merchant in the event: (a) Merchant takes any action to discourage the use of electronic check processing that are settled through Processor, or permits any event to occur that could have an adverse effect on the use, acceptance, or authorization of checks or other payments or deposits for the purchase of
              Merchant's services and products including but not limited to direct deposit of any checks into a bank account

            without scanning into the GCF electronic check processor; (b) Merchant changes its arrangements with Processor in any way

            that is adverse or unacceptable to GCF; (c) Merchant changes the electronic check processor through which the Receipts are settled from Processor to another
              electronic check processor, or permits any event to occur that could cause diversion of any of Merchant's check or deposit transactions to another processor; (d) Merchant interrupts the operation of this business (other than adverse weather, natural disasters or acts of God) transfers, moves,
              sells, disposes, or otherwise conveys its business and/or assets without (i) the express prior written consent of GCF, and (ii) the written agreement of any purchaser or transferee to the assumption of all of
              Merchant's obligations under this Agreement pursuant to documentation satisfactory to GCF; or (e) Merchant takes any action, fails to take any action, or offers any incentive-economic or otherwise-the result of which will be to induce any customer or customers to pay for Merchant's services with any means other than payments, checks or deposits that are settled through Processor. These protections are in addition to any other remedies available to GCF at law, in equity or otherwise pursuant to this
              Agreement.

         

            

        Protection 1. The full un collected Purchase Amount plus all fees (including legal fees) due under this Agreement and the attached Security Agreement become due and payable in full immediately. Protection
            2. GCF may enforce the provisions of the Validity Guaranty of Performance against the Guarantor(s). Protection 3. Merchant hereby authorizes GCF to execute in the name of the Merchant a Confession of Judgment in favor of GCF in  the amount of Purchase Amount stated in the Agreement. Upon breach of any provision in this paragraph 1.11, GCF may enter

          that Confession of Judgment as a Judgment with the Clerk of any Court and execute thereon. Protection 4. GCF may enforce its security interest in the Collateral identified in the attached Security Agreement and Guarantee. Protection 5. The entire Purchase Amount and all fees (including legal fees) shall become immediately refundable and payable to GCF from Merchant. Protection 6. GCF may proceed to protect and enforce its rights and remedies by lawsuit. In any such lawsuit, under which GCF shall recover Judgment against Merchant, Merchant shall be liable for all of GCF costs of the lawsuit, including but not limited to all reasonable attorneys 'fees and court costs. Protection 7. This Agreement shall be deemed Merchants Assignment of Merchant's Lease of Merchant's business premises to GCF. Upon breach of any provision in this Agreement, GCF may exercise its rights under this Assignment of Lease without prior Notice to Merchant. Protection 8. GCF may debit Merchant's depository accounts wherever situated by means of ACH debit or facsimile signature on a computer generated check drawn on Merchant's bank account or otherwise for all sums due to GCF.

      

      	
               

            

    

    
      
        	
                2

              	
                
                  Merchant Initial 

                

              

      

      
        

    

    
      
        1.12            Protection of Information. Merchant and each
            person signing this Agreement  on behalf of Merchant and/or as Owner or Guarantor, in respect of himself or herself personally, authorizes GCF to disclose information concerning Merchant's and each Owner's and each Guarantor's credit standing
            (including credit bureau reports that GCF obtains) and business conduct only to agents, affiliates, subsidiaries, and credit reporting bureaus. Merchant and each Owner and each Guarantor hereby and each waives to the maximum extent permitted by law any claim for
            damages against GCF or any of its affiliates relating to any (i) investigation undertaken by or on behalf of GCF as permitted by this Agreement or (ii) disclosure of information as permitted by this Agreement.

      

       

      
        1.13             Confidentiality. Merchant understands and agrees
            that the terms and conditions of the products and services offered by GCF, including this Agreement and any other GCF documentations (collectively, "Confidential Information") are proprietary and confidential information of GCF. Accordingly
            unless disclosure is required by law or court order, Merchant shall not disclose Confidential Information of GCF to any person other than an attorney, accountant, financial advisor or employee  of Merchant  who needs to know such information for the purpose of advising
            Merchant ("Advisor"), provided such Advisor uses such information solely for the purpose of advising Merchant and first agrees in writing to be bound by the terms of this section. A breach hereof entitles GCF to not only damages and legal fees but also to both a Temporary
            Restraining Order and a Preliminary Injunction without Bond or Security.

         

          

      

      
        1.14            Publicity. Merchant and each of Merchant's Owners and all Guarantors hereto all hereby authorizes GCF to use its, his or her name in listings of clients and in advertising and
            marketing materials.

         

          

      

      
        1.15             D /B /A's. Merchant hereby acknowledges and agrees that GCF may be using "doing

          business as" or "d/b/a" names in  connection  with various matters relating to the transaction between GCF and Merchant, including the filing of UCC-1 financing statements and other notices or filings.

      

       

      
        
          II. REPRESENTATIONS, WARRANTIES AND COVENANTS

        

         

        Merchant represents warrants and covenants that, as of this date and during the term of this Agreement; and until GCF is fully paid:

         

        

        2.1          Financial
                Condition and Financial Information. Merchant's and Guarantors 'bank and financial Statements, copies of which have been furnished to GCF, and
              future statements which will be furnished hereafter at the discretion of GCF, fairly represent the financial condition of Merchant at such dates, and since those dates there has been no material adverse changes, financial or otherwise, in
              such condition, operation or ownership of Merchant. Merchant and Guarantors have a continuing, affirmative
              obligation to advise GCF of any material adverse change in their financial condition, operation or ownership. GCF may request statements at any time during the performance of this Agreement and the Merchant and Guarantors shall provide them
              to GCF within 5 business days. Merchant's or Guarantors' failure to do so is a material breach of this Agreement.

        2.2         Governmental Approvals.
            Merchant is in compliance and shall comply with all laws and has valid permits, authorizations and licenses to own, operate and lease its properties and to conduct the business in which it is presently engaged and/or will engage in hereafter.

         

        2.3          Authorization. Merchant, and
            the person(s) signing this Agreement on behalf of Merchant, have full power and authority to incur and perform the obligations under this Agreement, all of which have been duly authorized.

         

          

        2.4          Insurance. Merchant will maintain business-interruption insurance naming GCF as loss payee and additional insured in amounts and against risks as are satisfactory to GCF and shall provide GCF proof of such insurance upon request.

         

            

        2.5          Electronic
                Check Processing Agreement. Merchant will not change its processor, add terminals, change its financial institution or bank account(s) or take any other action that could have any adverse effect upon Merchant's obligations under this Agreement, without GCF prior written consent. Any such changes shall be a material breach of this Agreement.

         

            

        2.6           Change of Name or Location. Merchant will not
            conduct Merchant's businesses under any name other than as disclosed to the Processor and GCF, nor shall Merchant change any of its places of business without prior written consent by GCF.

         

          

        2.7          Daily Batch Out. Merchant will batch out receipts
            with the Processor on a daily basis.

      

    

    
      2.8              Estoppel Certificate. Merchant will at every and all times, and from time to
          time, upon at least one (1) day's prior notice from GCF to Merchant, execute, acknowledge and deliver to GCF and/or to any other person, firm or corporation specified by GCF, a statement certifying that this Agreement is unmodified and in full
          force and effect (or, if there have been modifications, that the same is in full force and effect as modified and stating the modifications) and stating the dates which the Purchased Amount or any portion thereof has been repaid.

       

        

      2.9          No Bankruptcy. As of the
          date of this Agreement, Merchant is not insolvent and does not contemplate and has not filed any petition for bankruptcy protection under Title 11 of the United States Code and there has been no involuntary petition brought or pending against
          Merchant. Merchant further warrants that it does not anticipate filing any such bankruptcy petition and it does not anticipate that an involuntary petition will be filed against it. In the event that the Merchant files for bankruptcy protection
          or is placed under an involuntary filing Protections 2 and 3 are immediately invoked.

       

        

      2.10          Working Capital Funding. Merchant shall not
            enter into any arrangement, agreement or commitment that relates to or involves the Receipts, whether in the form of a purchase of, a loan against, collateral against or the sale or purchase of credits against, Receipts or future check sales
            with any party other than GCF.

       

          

      2.11          Unencumbered Receipts.
          Merchant has good, complete, unencumbered and marketable title to all Receipts, free and clear of any and all liabilities, liens, claims, changes, restrictions, conditions, options, rights, mortgages, security interests, equities, pledges and
          encumbrances of any kind or nature whatsoever or any other rights or interests that may be inconsistent with the transactions contemplated with, or adverse to the interests of GCF.

       

        

      2.12         Business Purpose.
          Merchant is a valid business in good standing under the laws of the jurisdictions in which it  is organized and/or operates, and Merchant is entering into this Agreement for business purposes and not as a consumer for personal, family or
          household purposes.

       

        

      2.13          Defaults under
              Other Contracts. Merchant's execution of, and/or performance under this Agreement, will not cause or create an event of default by Merchant
            under any contract with another person or entity.

      

        
          2.14             Good Faith, Best Efforts and Due Diligence. Merchant and Guarantors hereby affirm that they will conduct the business in Good Faith and will expend their best efforts to maintain and grow its business, to
              ensure that GCF obtains the Purchased Amount. Furthermore, Merchant and Guarantors hereby agree, warrant and represent hereby that they will constantly perform all appropriate Due Diligence and credit checks of  all of the customers
              'finances, cash flow, solvency, good faith, payment histories and business reputations (the "Due Diligence Requirements") as may suffice to ensure any and all products and/or services provided, sold or delivered by Merchant to said customers
              will be paid for by customers in full and on time, and will not result in the creation of an unpaid account. These Due Diligence Requirements must be performed prior to any sales to any customer, and repeated no less frequently than monthly
              for so long as any sums are due from those customers. Full documentation of all of Merchant's compliance with its
              Due Diligence Requirements  must be maintained in Merchant's files so long as GCF has not fully collected all sums
              due to it. This is not a guaranty of payment by customers, but is a guaranty of full, adequate and good faith Due Diligent investigation and credit check of customers before extending credit to them and continuing no less frequently than
              monthly so long as sums are still due.

        

         

        Ill. EVENTS OF DEFAULT AND REMEDIES

         

        3.1            Events of Default. The occurrence of any of the following events shall constitute an "Event of Default" hereunder: (a) Merchant or Guarantor shall violate any term or covenant in this Agreement; (b) Any representation or
              warranty by Merchant in this Agreement shall prove to have been incorrect, false or misleading in any material respect when made; (c) the sending of notice of termination by Merchant; (d) Merchant shall transport, move, interrupt, suspend,
              dissolve or terminate its business; (e) Merchant shall transfer or sell all or substantially all of its assets; (f) Merchant shall make or send notice of any intended bulk sale or transfer by Merchant; (g) Merchant shall use multiple depository accounts without the prior written consent of GCF (h) Merchant shall change its depositing account without the prior written consent of GCF;
              (i) Merchant shall perform any act that reduces the value of any Collateral granted under this Agreement; or (j) Merchant shall default under any of the terms, covenants and conditions of any other agreement with GCF.

        

    

    	
             

          

    
      
        	
                3

              	
                
                  Merchant Initial 

                

              

      

      
        

    

    
      
        
          3.2          Validity Guaranty. In the event of a Default under Sections 2.3, 2.5, 2.6, 2.9, 2.10, 2.11, 2.12, 2.13, and 2.14 or upon the occurrence of Event of Default
            as defined in Section 3.1, should GCF determine that the Purchased Amount cannot be obtained from the Merchant's business, GCF will enforce its rights against the Guarantors of this transaction. Said Guarantors will be jointly and severally
            liable to GCF for all of GCF losses and damages, in additional to all costs and expenses and legal fees associated with such enforcement.

        

         

        3.3          Remedies. In case any
            Event of Default occurs and is not waived pursuant to Section 4.4.1 hereof, GCF may proceed to protect and enforce its rights or remedies by suit in equity of by action at law, or  both, whether  for the specific performance of any covenant,
            agreement or other provision contained herein, or to enforce the discharge of Merchant's obligations hereunder (including the Guaranty) or any other legal or equitable right or remedy. All rights, powers and remedies of GCF after the occurrence
            of an Event of Default, are cumulative and not exclusive and shall be in addition to any other rights, powers or remedies provided by law or equity. Simultaneous with the execution of this Agreement  Merchant  and Guarantor shall execute a
            Verified Confession of Judgment. In addition to the other remedies available to GCF upon any Event of Default, Merchant and Guarantor agree that GCF may file a Verified Confession of Judgment in New York (or an Agreed Judgment in Texas) without
            notice to Merchant and Guarantor and may seek to obtain a judgment for all amounts due and owing under this Agreement. In addition, GCF's remedies may include garnishment, or prejudgment garnishment, of Merchant's bank account.

         

        3.4       Costs. Merchant shall pay to GCF all reasonable costs associated with (a) a breach by Merchant of the Covenants in this
              Agreement and the enforcement thereof, and (b) the enforcement of GCF remedies set forth in Section 4.2
            below, including but not limited to court costs and attorneys 'fees.

         

            

        
          3.5             Required Notifications. Merchant is required to give GCF written notice within 24 hours of any filing under Title 11 of the United States Code. Merchant is required to give GCF seven days 'written notice prior to the closing of any sale of all
              or substantially all of the Merchant's assets or stock.

        

         

        IV. MISCELLANEOUS

         

        4.1         Modifications;

                Agreements. No modification, amendment, waiver or consent of any provision of this Agreement shall be effective unless the same shall be in
              writing and signed by GCF.

         

            

        
          4.2          Assignment. GCF may assign, transfer or sell its rights to receive the Purchased Amount or delegate its duties hereunder,
            either in whole or in part.

           

          

        

        
          4.3               Notices. All notices, requests, consents, demands and
              other communications hereunder shall be delivered by certified mail, return receipt requested, to the respective parties to this Agreement at the addresses set forth in this Agreement. Notices to GCF shall become effective only upon receipt
              by GCF. Notices to Merchant shall become effective three days after mailing.

           

            

        

        
          4.4              Waiver Remedies. No failure on the part of GCF to
              exercise, and no delay in exercising, any right under this Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right under this Agreement preclude any other or further exercise thereof or the exercise
              of any other right. The remedies provided hereunder are cumulative and not exclusive of any remedies provided by law or equity.

           

            

        

        4.5        Binding
                Effect; Governing Law, Venue and Jurisdiction. This Agreement shall be binding upon and inure to the benefit of Merchant, GCF and their respective successors and assigns, except that Merchant shall not have the right to assign its
              rights hereunder or any interest herein without the prior written consent of GCF, which consent may be withheld in GCF 'sole discretion. GCF reserves the rights to assign this Agreement with, or without written notice to Merchant. This
              Agreement shall be governed by and construed exclusively in accordance with the laws of the State of New York, without regards to any applicable principles of conflicts of law. If there is any suit,
              action, litigation or proceeding arising hereunder, or for the interpretation, performance or breach hereof, by either party, then such litigation shall only be instituted
            in any court sitting in the state of New York or Texas (the "Acceptable Forums"). The parties, including Merchant and
            Guarantor, agree that the Acceptable Forums are a convenient forum and submit to personal jurisdiction of the Acceptable Forums and waive any and all objections to jurisdiction or venue. Should any proceeding be initiated in any other state or
            forum, the parties waive any right to oppose any motion or application made by either party to transfer such proceeding to the Acceptable Forums. Additionally, Merchant and Guarantor hereby agree to waive any formal personal service of process
            and agree that any summons and/or complaint or other process to commence any litigation by GCF will be properly served if sent by certified mail, return receipt requested to the mailing address listed on page 1 of this Agreement.

      

      
        4.6            Survival
                of Representation, etc. All representations, warranties and covenants herein shall survive the execution and delivery of this Agreement and
              shall continue in full force until all obligations under this Agreement shall have been satisfied in full and this Agreement shall have terminated.

         

            

        
          4.7                Interpretation. All Parties hereto have reviewed this Agreement with attorney of their own choosing and have relied only on their own
            attorneys 'guidance and advice. No construction determinations shall be made against either Party hereto as drafter.

        

        

        

        
          4.8            Severability. In case any of the provision in this Agreement is found to be invalid, illegal or
              unenforceable in any respect, the  validity, legality and enforceability of any other provision contained herein shall not in any way be affected or
              impaired.

        

        

        

        
          4.9            Entire Agreement. Any provision hereof prohibited by law shall be ineffective only to the extent of such prohibition, without invalidating the
            remaining provisions hereof. This Agreement and the Security Agreement, Guaranty and Confession of Judgment hereto constitute and embody the entire agreement between Merchant and GCF and supersede all prior agreements and understandings
            relating to the subject matter hereof.

        

        

        

        4.10          JURY TRIAL WAIVER.
            THE PARTIES HERETO WAIVE TRIAL BY JURY IN ANY COURT IN ANY SUIT, ACTION OR PROCEEDING ON ANY MATTER ARISINGIN CONNECTION WITH OR IN ANY WAY RELATED TO THE TRANSACTIONS ORTHE ENFORCEMENT HEREOF. THE PARTIES HERETO ACKNOWLEDGE THAT EACHMAKES THIS
            WAIVER KNOWINGLY, WILLINGLY AND VOLUNTARILY AND WITHOUTDURESS, AND ONLY AFTER EXTENSIVE CONSIDERATION OF THE RAMIFICATIONS OFTHIS WAIVER WITH THEIR ATTORNEYS.

         

          

        
          4.11           CLASS ACTION WAIVER. THE PARTIES HERETO WAIVE ANY RIGHT TO ASSERT ANY CLAIMS AGAINST THE OTHER PARTY AS A REPRESENTATIVE OR MEMBER IN ANY
            CLASS OR REPRESENTATIVE ACTION, EXCEPT WHERE SUCH WAIVER IS PROHIBITED BY LAW AS AGAINST PUBLIC POLICY. TO THE EXTENT EITHER PARTY IS PERMITIED BY LAWOR COURT OF LAW TO PROCEED WITH A CLASS OR REPRESENTATIVE ACTION AGAINST THE OTHER, THE
            PARTIES HEREBY AGREE THAT: (1) THE PREVAILING PARTY SHALL NOT BE ENTITLED TO RECOVER ATTORNEYS 'FEES OR COSTS ASSOCIATED WITHPURSUING THE CLASS OR REPRESENTATIVE ACTION (NOTWITHSTANDING ANY OTHER PROVISION IN THIS AGREEMENT); AND (2) THE PARTY
            WHO INITIATES OR PARTICIPATES ASA MEMBER OF THE CLASS WILL NOT SUBMIT A CLAIM OR OTHERWISE PARTICIPATEIN ANY RECOVERY SECURED THROUGH THE CLASS OR REPRESENTATIVE ACTION.

        

        

        

        
          4.12              Facsimile  &  Digital  Acceptance.   Facsimile  signatures  and Electronic Digital signatures hereon shall be deemed acceptable for all purposes.

        

         

        4.13          Stacking Fee.
            $5,000.00 - When Merchant takes additional funding after getting funded by GCF while Merchant has a balance with GCF or any subsidiary or any other GCF associated entities. In the event GCF is stacked by another funder, GCF has the right to
            collect an additional daily payment per day.

      

       

      

      	
               

            

    

    
      
        	
                4

              	
                
                  Merchant Initial 

                

              

      

      
        

    

    SECURITY AGREEMENT AND GUARANTEE

     

    
      	
              Merchant's Legal Name: SANUWAVE, INC. 

              Address: 3360 MARTIN FARM RD #100

              Federal Tax ID#: 20-3198616

            	
              
                DBA Name: SANUWAVE

                

                City: SUWANEE

                

              

            	
              State: GA

            	
              Zip: 30024

            
	 	 	 	 

    

     

    

    SECURITY AGREEMENT

     

    

    Security Interest. This Agreement will
        constitute a security agreement under the Uniform Commercial Code. Merchant grants to GCF a security interest in and lien upon: (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, (b) all proceeds, as that term is defined in Article 9 of the UCC (c) all funds at any time in the Merchant's Account, regardless
        of the source of such funds, (d) present and future Electronic Check Transactions, and (e) any amount which may be due to GCF under this Agreement, including but not limited to all rights to receive any payments or credits under this Agreement
        (collectively, the "Secured Assets"). Merchant agrees to provide other security to GCF upon request to secure Merchant's obligations under this Agreement. Merchant agrees that, if at any time there are insufficient funds in Merchant's Account to
        cover GCF entitlements under this Agreement, GCF is granted a further security interest in all of Merchant's assets of any kind whatsoever, and such assets shall then become Secured Assets. These security interests and liens will secure all of GCF
        entitlements under this Agreement and any other agreements now existing or later entered into between Merchant, GCF or an affiliate of GCF. GCF is authorized to file any and all notices or filings it deems necessary or appropriate to enforce its
        entitlements hereunder.

     

    This security interest may be exercised by GCF without notice or demand of any kind by making an
        immediate withdrawal or freezing the Secured Assets. Pursuant to Article 9 of the Uniform Commercial Code, as amended from time to time, GCF has control over and may direct the disposition of the Secured Assets, without further consent of Merchant.
        Merchant hereby represents and warrants that no other person or entity has a security interest in the Secured Assets. With respect to such security interests and liens, GCF will have all rights afforded under the Uniform Commercial Code, any other applicable law and in equity. Merchant will obtain from GCF written consent prior to granting a security interest of any
        kind in the Secured Assets to a third party. Merchant agrees that this is a contract of recoupment and GCF is not required to file a motion for relief from a bankruptcy action automatic stay to realize on any of the Secured Assets. Nevertheless,
        Merchant agrees not to contest or object to any motion for relief from the automatic stay filed by GCF. Merchant agrees to
        execute and deliver to GCF such instruments and documents GCF may reasonably request to perfect and confirm the lien, security interest and right of setoff set forth in this Agreement. GCF is authorized to execute all such instruments and documents
        in Merchant's name.

     

    Additional Collateral. To secure Guarantor's performance obligations to GCF under the Guaranty, the Guarantor hereby grants GCF a security interest in SANUWAVE SERVICES, LLC the   "Additional Collateral"). Guarantor understands that GCF will have a security interest in the aforesaid Additional Collateral upon execution of this Agreement. Merchant and Guarantor each
        acknowledge and agree that any security interest granted to GCF under any other agreement between Merchant or Guarantor and GCF (the "Cross-Collateral") will secure the obligations hereunder and under the Merchant Agreement.

     

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

     

    Negative Pledge. Merchant and Guarantor 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 or the Additional Collateral, as applicable.

     

    Consent to Enter Premises and Assign Lease. GCF

        shall have the right to cure Merchant's 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, GCF may execute its rights and
        remedies under the Assignment of Lease. Merchant also agrees that GCF may enter into an agreement with Merchant's landlord giving GCF the right: (a) to enter Merchant's premises and to take possession of the fixtures and equipment therein for the
        purpose of protecting and preserving same; and/or (b) to assign Merchant's lease to another qualified business capable of operating a business comparable to Merchant's at such premises.

     

    Remedies. Upon any Event of Default, GCF 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 to GCF, whether by acceleration or otherwise.

    

    

    VALIDITY GUARANTY

     

    Validity Guaranty of Performance. The undersigned Guarantor(s) hereby guarantees to GCF, Merchant's good faith, truthfulness and performance of all of the representations, warranties, covenants made by Merchant in the Merchant Agreement in Sections thereof 2.3,
        2.5, 2.6, 2.9, 2.10, 2.11, 2.12, 2.13 and 2.14, as each agreement may be renewed, amended, extended or otherwise modified (the "Guaranteed  Obligations"). Guarantor's obligations are due at the time of any breach by Merchant of any representation, warranty, or covenant made by Merchant in the Agreement.

     

    Guarantor Waivers. In the event of a breach
        of the above, GCF may seek recovery from Guarantors for all of GCF losses and damages by enforcement of GCF rights under this Agreement without first seeking to obtain payment from Merchant, any other guarantor, or any Collateral or Additional
        Collateral GCF may hold pursuant to this Agreement or any other guaranty.

     

    
      
        

    

    GCF does not  have to  notify Guarantor of any of the following events and Guarantor will not be released from its obligations under this Agreement if
      it is not notified of: (i) Merchant's failure to pay timely any amount owed under the Merchant Agreement; (ii) any adverse change in Merchant's financial condition or business; (iii) any sale or other disposition of any collateral securing the
      Guaranteed Obligations or any other guaranty of the Guaranteed Obligations; (iv) GCF acceptance of this Agreement; and (v) any renewal, extension or other modification of the Merchant Agreement or Merchant's other obligations to GCF. In addition, GCF
      may take any of the following actions without releasing Guarantor from any of its obligations under this Agreement: (i) renew, extend or otherwise modify the Merchant Agreement or Merchant's other obligations to GCF; (ii) release Merchant from its
      obligations to GCF; (iii) sell, release, impair, waive or otherwise fail to realize upon any collateral securing the Guaranteed Obligations or any other guaranty of the Guaranteed Obligations; and (iv) foreclose on any collateral securing the
      Guaranteed Obligations or any other guaranty of the Guaranteed Obligations in a manner that impairs or precludes the right of Guarantor to obtain reimbursement for payment under this Agreement. Until the Merchant Amount plus any accrued but unpaid
      interest and Merchant's other obligations to GCF under the Merchant Agreement and this Agreement are paid in full, Guarantor shall not seek reimbursement  from Merchant or any other guarantor for any amounts paid by it under this Agreement. Guarantor
      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: (i) subrogation; (ii) reimbursement; (iii) performance; (iv) indemnification; or (v) contribution. In the event that GCF 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, Guarantor's obligations under this Agreement shall include that amount.

     

    Guarantor Acknowledgement. Guarantor
        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 counsel of his/her choice; and (iii) He/She has consulted with counsel of its 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 Guarantor under this Agreement are joint and several.

     

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

     

    	
            MERCHANT

          	 	 	 	 	 
	
            

          	 	 	 	 	 
	
            BY: KEVIN A RICHARDSON II

          	
            X

          	/s/ KEVIN A RICHARDSON II	 	 	 
	 	 	
            
              (SIGNATURE)

            

          	 	 	 
	 	 	 	 	 	 
	
            CEO #1: KEVIN A RICHARDSON II

          	
            X

          	/s/ KEVIN A RICHARDSON II	 	
            9/27/2021

          	 
	 	 	
            
              (SIGNATURE)

            

          	 	
            (DATE)

          	 
	 	 	 	 	 	 
	
            (SOCIAL SECURITY#)

          	 	 	 	 	 
	

          	 	
            (DRIVERS LICENSE)

          	 	 	 
	 	 	 	 	 	 
	
            CEO#2:

          	
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            (SIGNATURE)

          	 	
            (DATE)

          	 
	 	 	 	 	 	 
	
            (SOCIAL SECURITY#)

          	 	 	 	 	 
	
            

            

          	 	
            (DRIVERS LICENSE)

          	 	 	 

     

    ACKNOWLEDGMENT

     

    I,     KEVIN A RICHARDSON II hereby acknowledge:

     

    	•	
            There has been no promise of additional capital in 30 days from funding by GCF Resources LLC or any ISO (broker)

          

     

    	

          	o	
            Our policy is that merchants can seek additional capital from us when they have paid 50% of the Receipts Purchased Amount.

          

     

    	•	
            There has not been and will not be any contact from third party debt companies regarding this Future Receivables Agreement dated

          

     

    September 27, 2021 

      

     

    I,the under signed, acknowledge that I am in agreement with these items, which are also described in detail within the pages of this

    

    

    
      	
              
                /s/ KEVIN A RICHARDSON II

              

            	 	9/27/2021	 
	Signature 

            	
               

            	Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00337-of-00352.parquet"}]]