Document:

Exhibit

Exhibit 10.4

CARNIVAL PLC PERFORMANCE‐BASED 
RESTRICTED SHARE UNIT AGREEMENT 
FOR THE CARNIVAL PLC 2014 EMPLOYEE SHARE PLAN

THIS [YEAR] PERFORMANCE-BASED RESTRICTED SHARE UNIT AGREEMENT (this “Agreement”), shall apply to the award of performance-based Restricted Share Units granted to employees of Carnival plc, a corporation organized under the laws of England and Wales (the “Company”), or employees of an Affiliate, on [GRANT DATE] under the Carnival plc 2014 Employee Share Plan (the “Plan”).

WHEREAS, the Company has adopted the Plan, pursuant to which restricted stock units may be granted in respect of the Company’s ordinary shares, par value $1.66 per share (“Shares”); and 

 
WHEREAS, the Compensation Committee of the Company (the “Committee”) has determined that it is in the best interests of the Company and its stockholders to grant the restricted Share units provided for herein to the Participant subject to the terms set forth herein.

 
NOW, THEREFORE, for and in consideration of the premises and the covenants of the parties contained in this Agreement, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto, for themselves, their successors and assigns, hereby agree as follows:

		
	1.
	Grant of Restricted Share Units.

(a)    Grant.   The Company hereby grants to select individuals (each a “Participant”) a target number of restricted Share units (the “PBS RSUs”) set forth in Participant’s EquatePlus portfolio (the “Target Amount”), on the terms and conditions set forth in the Plan and this Agreement.  Each PBS RSU represents the right to receive payment in respect of one Share as of the Settlement Date (as defined below), to the extent the Participant is vested in such PBS RSUs as of the Settlement Date, subject to the terms of this Agreement and the Plan.  The PBS RSUs are subject to the restrictions described herein, including forfeiture under the circumstances described in Section 3 hereof (the “Restrictions”). The Restrictions shall lapse and the PBS RSUs shall vest and become nonforfeitable in accordance with Section 2 and Section 3 hereof. 
(b)    Incorporation by Reference, Etc.  The provisions of the Plan are hereby incorporated herein by reference.  Except as otherwise expressly set forth herein, this Agreement shall be construed in accordance with the provisions of the Plan and any interpretations, amendments, rules and regulations promulgated by the Committee from time to time pursuant to the Plan. Any capitalized terms not otherwise defined in this Agreement shall have the definitions set forth in the Plan.  The Committee shall have final authority to interpret and construe the Plan and this Agreement, and to make any and all determinations under them. The Committee’s decision shall be binding and conclusive upon the Participant and his legal representative in respect of any questions arising under the Plan or this Agreement.  In the event there is any inconsistency between the provisions of the Plan and this Agreement, the provisions of the Plan shall govern.
2.    Terms and Conditions. 
(a)    Performance Goal.  

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(i)    Subject to the Participant’s continued employment or service with the Company, a specified percentage of the PBS RSUs shall vest if both (A) the Participant remains in continuous employment or continuous service with the Company through the Settlement Date as defined in Sub-section (b) below, and (B) the Company achieves, at a minimum, the threshold level of performance with respect to the performance goals set forth on Exhibit A (the “Performance Goals”).   Unless provided otherwise by the Committee, the Participant shall be deemed to not be in continuous employment or continuous service if the Participant’s status changes from employee to non-employee, or vice-versa.  The actual number of PBS RSUs that may vest ranges from zero to 200% of the Target Amount based on the extent to which the Performance Goals are achieved at the end of the 3-year performance period as set forth on Exhibit A, in accordance with the methodology set out on Exhibit A, subject to a maximum payout cap of 200%.  (I) if the Company does not achieve the threshold level of the Performance Goals as set out on Exhibit A, then no PBS RSUs shall vest and this grant of PBS RSUs shall be cancelled in its entirety, and (II) no vesting shall occur unless and until the Committee certifies that the Performance Goals have been met (the “Certification”).
(ii)    At any time following the Date of Grant, the Committee shall make adjustments or modifications to the Performance Goals and the calculation of the Performance Goals as it determines, in its sole discretion, are necessary in order to avoid dilution or enlargement of the intended benefits to be provided to the Participant under this Agreement, to reflect the following events:  (A) asset write-downs; (B) litigation or claim judgments or settlements; (C) the effect of changes in tax laws, accounting principles, or other laws or regulatory rules affecting reported results; (D) any reorganization and restructuring programs; (E) extraordinary nonrecurring items as described in Accounting Standards Codification Topic 225-20 (or any successor pronouncement thereto) and/or in management’s discussion and analysis of financial condition and results of operations appearing in the Company’s annual report to stockholders for the applicable year; (F) acquisitions or divestitures; (G) foreign exchange gains and losses; (H) discontinued operations and nonrecurring charges; (I) a change in the Company’s fiscal year; and/or (J) any other specific, unusual or nonrecurring events.  
(b)    Settlement.   The obligation to make payments and distributions with respect to PBS RSUs shall be satisfied through the issuance of one Share for each vested PBS RSU, less applicable withholding taxes (the “settlement”), and the settlement of the PBS RSUs may be subject to such conditions, restrictions and contingencies as the Committee shall determine.  The PBS RSUs shall be settled as soon as practicable after the end of the three-year performance period and Certification (as applicable, the “Settlement Date”), but in no event later than March 15 of the year following the calendar year in which Certification occurs, except as otherwise specified in Section 4(a).  Notwithstanding the foregoing, the payment dates set forth in this Section 2(b) have been specified for the purpose of complying with the provisions of Section 409A of the Code (“Section 409A”).  To the extent payments are made during the periods permitted under Section 409A (including any applicable periods before or after the specified payment dates set forth in this Section 2(b)), the Company shall be deemed to have satisfied its obligations under the Plan and shall be deemed not to be in breach of its payments obligations hereunder.
(c)    Dividends and Voting Rights.  Subject to the limitation set forth in Exhibit A (8), eachPBS RSU subject to this grant shall be credited with dividend equivalents equal to the dividends (including extraordinary dividends if so determined by the Committee) declared and paid to other shareholders of the Company in respect of one Share.  Dividend equivalents shall not bear interest.  On the Settlement Date, such dividend equivalents in respect of each vested PBS RSU shall be settled by delivery to the Participant of a number of Shares equal to the quotient obtained by dividing (i) the aggregate accumulated value of such dividend equivalents by (ii) the Fair Market Value of a Share on the date that is 30 days prior to the Settlement Date or other applicable vesting date set forth in Section 3(b), rounded down to the nearest whole share, less 

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any applicable withholding taxes.  No dividend equivalents shall be accrued for the benefit of the Participant with respect to record dates occurring prior to the Date of Grant, or with respect to record dates occurring on or after the date, if any, on which the Participant has forfeited the PBS RSUs.  The Participant shall have no voting rights with respect to the PBS RSUs or any dividend equivalents. 
3.    Termination of Employment or Service with the Company.
(a)    Termination by the Company for Cause. If the Participant’s employment or service with the Company terminates for Cause, then all outstanding PBS RSUs shall immediately terminate on the date of termination of employment or service.
(b)    Death or Disability. If the Participant’s employment or service with the Company terminates due to the Participant’s death or is terminated by the Company due to the Participant’s Disability, then the Participant shall be deemed to have vested on the date of termination in a number of PBS RSUs equal to the product of (i) the Target Amount of PBS RSUs multiplied by (ii) a fraction, the numerator of which is the number of days elapsed during the period commencing on December 1, [FISCAL YEAR] through and including the date of termination, and the denominator of which is the total number of days in the performance period, rounded down to the nearest whole PBS RSU, and the remaining unvested portion of the PBS RSUs shall terminate on the date of termination of employment or service.  The vested PBS RSUs (and any associated dividend equivalents) shall be settled in accordance with Section 2(b) and 2(c), respectively.
(c)    Other Termination. If the Participant’s employment or service with the Company terminates for any reason other than as otherwise described in the foregoing provisions of this Section 3 (whether due to voluntary termination, Retirement, termination by the Company without Cause, or otherwise), then all outstanding PBS RSUs shall immediately terminate on the date of termination of employment or service.
(d)    Released PBS RSUs.  Following Participant’s termination of employment or service with the Company for any reason, Participant (or Participant’s beneficiary, if applicable) must provide for all Shares underlying released PBS RSUs (including those issued under this Agreement as well as Shares underlying released PBS RSUs issued under any other similar agreement, whether on account of termination or previously released in connection with the vesting terms of such similar agreement) to be liquidated or transferred to a third party broker after all required documentation and tax withholding guidance is received no later than six months following the later of (i) Participant’s date of termination or (ii) the latest Settlement Date or other applicable vesting date (whether under this Agreement or a similar agreement) occurring following Participant’s termination.  If Participant (or Participant’s beneficiary, as applicable) fails to liquidate or transfer the Shares prior to the end of the applicable six month period, the Company is hereby authorized and directed by Participant either, in the Company’s discretion: (i) to sell any such remaining Shares on Participant’s (or Participant’s beneficiary’s) behalf on the next trading date following the end of such period on which the Company is not prohibited from selling such Shares; or (ii) to transfer such Shares to the Company’s stock transfer agent for registration in Participant’s (or Participant’s beneficiary’s) name. The Company will not be responsible for any gain or loss or taxes incurred with respect to the Shares underlying the released PBS RSUs in connection with such liquidation or transfer.
Except as otherwise provided in Section 3(b), in no event shall any PBS RSUs be settled unless and until both (i) at least the threshold Performance Goals are achieved, and (ii) the Certification occurs. 
4.    Miscellaneous.
(a)    Compliance with Legal Requirements.  The granting and settlement of the PBS RSUs, and any other obligations of the Company under this Agreement, shall be subject to all applicable federal, state, 

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local and foreign laws, rules and regulations and to such approvals by any regulatory or governmental agency as may be required.  If the settlement of the PBS RSUs would be prohibited by law or the Company’s dealing rules, the settlement shall be delayed until the earliest date on which the settlement would not be so prohibited.
(b)    Transferability.  Unless otherwise provided by the Committee in writing, the PBS RSUs shall not be assigned, alienated, pledged, attached, sold or otherwise transferred or encumbered by the Participant other than by will or the laws of descent and distribution and any such purported assignment, alienation, pledge, attachment, sale, transfer or encumbrance shall be void and unenforceable against the Company; provided, that, the designation of a beneficiary shall not constitute an assignment, alienation, pledge, attachment, sale, transfer or encumbrance.
(c)    Tax Withholding.  All distributions under the Plan are subject to withholding of all applicable federal, state, local and foreign taxes, and the Committee may condition the settlement of the PBS RSUs on satisfaction of the applicable withholding obligations. The Company, Carnival plc or any Affiliate of the Company or Carnival plc has the right, but not the obligation, to withhold or retain any Shares or other property deliverable to the Participant in connection with the grant of PBS RSUs or from any compensation or other amounts owing to the Participant the amount (in cash, Shares or other property) of any required tax withholding in respect of the Shares and to take such other action as may be necessary in the opinion of the Company to satisfy all obligations for the payment of such taxes.
(d)    Clawback/Forfeiture.  
(i)    In the case of fraud, negligence, intentional or gross misconduct or other wrongdoing on the part of Participant (or any other event or circumstance set forth in any clawback policy implemented by the Company, including, without limitation, any clawback policy adopted to comply with the requirements of the Dodd-Frank Wall Street Reform and Consumer Protection Act and any rules or regulations promulgated thereunder) that results in a material restatement of the Company’s issued financial statements, such Participant will be required to reimburse the Company for all or a portion, as determined by the Committee in its sole discretion, of any income or gain realized on the settlement of the PBS RSUs or the subsequent sale of Shares acquired upon settlement of the PBS RSUs with respect to any fiscal year in which the Company’s financial results are negatively impacted by such restatement.  The Participant agrees to and shall be required to repay any such amount to the Company within 30 days after the Company demands repayment.  In addition, if the Company is required by law to include an additional “clawback” or “forfeiture” provision to outstanding awards, under the Dodd-Frank Wall Street Reform and Consumer Protection Act or otherwise, then such clawback or forfeiture provision shall also apply to this Agreement as if it had been included on the Date of Grant and the Company shall promptly notify the Participant of such additional provision.  In addition, if a Participant has engaged or is engaged in Detrimental Activity after the Participant’s employment or service with the Company or its subsidiaries has ceased, then the Participant, within 30 days after written demand by the Company, shall return any income or gain realized on the settlement of the PBS RSUs or the subsequent sale of Shares acquired upon settlement of the PBS RSUs.
(ii)    For purposes of this Agreement, “Detrimental Activity” means any of the following:  (i) unauthorized disclosure of any confidential or proprietary information of the Combined Group, (ii) any activity that would be grounds to terminate the Participant’s employment or service with the Combined Group for Cause, (iii) whether in writing or orally, maligning, denigrating or disparaging the Combined Group or their respective predecessors and successors, or any of the current or former directors, officers, employees, shareholders, partners, members, agents or representatives of any of the foregoing, with respect to any of their respective past or present activities, or otherwise publishing (whether in writing or orally) statements that tend to portray any of the aforementioned persons or entities in an unfavorable light, or (iv) 

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the breach of any noncompetition, nonsolicitation or other agreement containing restrictive covenants, with the Combined Group.  For purposes of the preceding sentence the phrase “the Combined Group” shall mean “any member of the Combined Group or any Affiliate”.
(e)    No Rights as Stockholder.  The Participant shall not be deemed for any purpose to be the owner of any Shares subject to the PBS RSUs.  The Company shall not be required to set aside any fund for the payment of the PBS RSUs.
(f)    Waiver.  Any right of the Company contained in this Agreement may be waived in writing by the Committee.  No waiver of any right hereunder by any party shall operate as a waiver of any other right, or as a waiver of the same right with respect to any subsequent occasion for its exercise, or as a waiver of any right to damages.  No waiver by any party of any breach of this Agreement shall be held to constitute a waiver of any other breach or a waiver of the continuation of the same breach.
(g)    Notices.  Any written notices provided for in this Agreement or the Plan shall be in writing and shall be deemed sufficiently given if either hand delivered or if sent by fax or overnight courier, or by postage paid first class mail.  Notices sent by mail shall be deemed received three business days after mailing but in no event later than the date of actual receipt.  Notices shall be directed, if to the Participant, at the Participant’s address indicated by the Company’s records, or if to the Company, at the Company’s principal executive office.
(h)    Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement, and each other provision of this Agreement shall be severable and enforceable to the extent permitted by law.
(i)    No Rights to Continued Employment.  Nothing in the Plan or in this Agreement shall be construed as giving the Participant any right to be retained, in any position, as an employee, consultant or director of the Company or its Affiliates or shall interfere with or restrict in any way the right of the Company or its Affiliates, which are hereby expressly reserved, to remove, terminate or discharge the Participant at any time for any reason whatsoever.  The rights and obligations of the Participant under the terms and conditions of the Participant’s office or employment shall not be affected by this Agreement.  The Participant waives all and any rights to compensation and damages in consequence of the termination of the Participant’s office or employment with any member of the Combined Group or any of its Affiliates for any reason whatsoever (whether lawfully or unlawfully) insofar as those rights arise, or may arise, from the Participant’s ceasing to have rights under or the Participant’s entitlement to the PBS RSUs under this Agreement as a result of such termination or from the loss or diminution in value of such rights or entitlements.  In the event of conflict between the terms of this Section 4(i) and the Participant’s terms of employment, this Section will take precedence.
(j)    Beneficiary.  If no beneficiary designated in a valid will survives the Participant, the Participant’s estate shall be deemed to be the Participant’s beneficiary.
(k)    Successors.  The terms of this Agreement shall be binding upon and inure to the benefit of the Company and its successors and assigns, and of the Participant and the beneficiaries, executors, administrators, heirs and successors of the Participant.  
(l)    Entire Agreement.  This Agreement and the Plan contain the entire agreement and understanding of the parties hereto with respect to the subject matter contained herein and supersede all prior communications, representations and negotiations in respect thereto.  No change, modification or waiver of 

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any provision of this Agreement shall be valid unless the same be in writing and signed by the parties hereto, except for any changes permitted without consent of the Participant in accordance with the Plan.

(m)    Governing Law; JURY TRIAL WAIVER.  This Agreement shall be construed and interpreted in accordance with the laws of the State of Florida without regard to principles of conflicts of law thereof, or principles of conflicts of laws of any other jurisdiction which could cause the application of the laws of any jurisdiction other than the State of Florida.  THE PARTIES EXPRESSLY AND KNOWINGLY WAIVE ANY RIGHT TO A JURY TRIAL IN THE EVENT ANY ACTION ARISING UNDER OR IN CONNECTION WITH THIS AGREEMENT IS LITIGATED OR HEARD IN ANY COURT.
(n)    Data Protection.  By accepting the grant of the PBS RSUs the Participant agrees and consents:
(i)    to the collection, use, processing and transfer by the Company of certain personal information about the Participant, including the Participant’s name, home address and telephone number, date of birth, other employee information, details of the PBS RSUs granted to the Participant, and of Shares issued or transferred to the Participant pursuant to this Agreement (“Data”); and
(ii)    to the Company transferring Data to any subsidiary or Affiliate of the Company for the purposes of implementing, administering and managing this Agreement; and
(iii)    to the use of such Data by any person for such purposes; and
(iv)    to the transfer to and retention of such Data by third parties in connection with such purposes.
(o)    Headings.  The headings of the Sections hereof are provided for convenience only and are not to serve as a basis for interpretation or construction, and shall not constitute a part, of this Agreement.
EXECUTED AND DELIVERED BY CARNIVAL PLC            )
ACTING BY A DIRECTOR AND A DIRECTOR OR THE SECRETARY    )

____________________________    ________________________________
 Arnold W. Donald, Director             Arnaldo Perez, Secretary

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Exhibit A

Performance Goal Vesting Matrix

The percentage of the Target Amount of PBS RSUs that shall vest will be based upon the extent to which the Combined Group’s adjusted operating income (“OI”), as normalized for [ANNUAL ADJUSTMENTS]  for each of the three fiscal years in the [PERFORMANCE PERIOD DATES] performance period (“Performance Period”) exceeds the Combined Group’s [ANNUAL BASELINE OI]  ([WEIGHT %] weighting); and (ii) the extent to which the Combined Group’s adjusted return on invested capital (“ROIC”) at the end of the Performance Period compares to the performance goals for such period ([WEIGHT %] weighting) in accordance with this Exhibit.  All OI and/or ROIC figures referred to herein along with any figures used to obtain OI and/or ROIC are determined on a non-GAAP basis as set forth herein.

[PERFORMANCE-BASED CRITERIA FOR AWARD] 

7NOTE
CONVERSION AGREEMENT

 

THIS
NOTE CONVERSION AGREEMENT (“Agreement”) made as of the date set forth on the signature page hereto among BOXLIGHT
CORPORATION, (the “Company” or “BOXL”), EVEREST DISPLAY, INC., a corporation organized
under the laws of Taiwan (“Everest”) and THE MARLBOROUGH TRUST, a California trust (the “Trust”).
Everest and the Trust are hereinafter sometimes collectively referred to as the “Note Holders.”

 

W
I T N E S S E T H:

 

WHEREAS,
Everest is the holder of a 4% $2,000,000 convertible promissory note of the Company dated as of May 11 , 2017, a true
copy of which is annexed hereto as Exhibit A and made a part hereof (the “Everest Note”); and

 

WHEREAS,
The Trust is the holder of a 4% $2,000,000 convertible promissory note of the Company dated as of April 1, 2016, that was issued
to Mim Holdings, LLC and subsequently assigned by Mim Holdings, LLC to the Trust; a true copy of which is annexed hereto as Exhibit
B and made a part hereof (the “Marlborough Note”); and

 

NOW,
THEREFORE, in consideration of the premises and the mutual representations and covenants hereinafter set forth, the parties hereto
do hereby agree as follows:

 

 I. CONVERSION OF THE EVEREST NOTE AND MARLBOROUGH NOTE.

 

1.1       Subject
to the conversion of the Marlborough Note in accordance with the provisions of Section 1.2 below, on the date that the
Post-Effective Amendment to the Company’s effective registration statement on Form S-1 (the “Registration Statement”),
as filed with the Securities and Exchange Commission (the “SEC”) on or before June 30 , 2017, shall be
declared effective by the SEC (the “Conversion Date”), the entire unpaid principal amount of the $2,000,000
Everest Note, together with all interest accrued thereon, shall automatically, and without any other action or consent
on the part of Everest or any of its affiliates, be converted into that number of shares of Class A Common Stock of the Company
(the “Everest Conversion Shares”), as shall be determined by dividing (a) the entire unpaid principal amount
of the $2,000,000 Everest Note, together with all interest accrued thereon, by (b) a conversion price of $6.30 per share (the
“Everest Conversion Price”).

 

1.2       Subject
to the conversion of the Everest Note in accordance with the provisions of Section 1.1 above, on the Conversion Date, the
entire unpaid principal amount of the $2,000,000 Marlborough Note, together with all interest accrued thereon, shall automatically,
and without any other action or consent on the part of Marlborough or its trustee or affiliates, be converted into that number
of shares of Class A Common Stock of the Company (the “Marlborough Conversion Shares”), as shall be determined
by dividing (a) the entire unpaid principal amount of the $2,000,000 Marlborough Note, together with all interest accrued thereon,
by (b) a conversion price of $6.30 per share (the “Marlborough Conversion Price”).

 

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1.3       As
used in this Agreement and in all other agreements between and among the Company, Everest, the Trust and their affiliates and
Representatives, the definition of “Fully-Diluted Common Stock” (as it applies to the Company or any successor-in-interest
public company) is hereby amended to read as follows:

 

“Fully-Diluted
Common Stock” shall mean (i) all shares of Common Stock of BOXL or PubCo Common Stock issued and outstanding and (ii)
all shares of Common Stock of BOXL or PubCo Common Stock issuable upon conversion, exchange or exercise, including, without limitation,
those issuable pursuant to signed definitive acquisition agreements in connection with the acquisition of the Acquired Companies
and the acquisitions of Mimio and Genesis, in each case, immediately prior to giving effect to any Liquidity Event;
provided, however, that Fully-Diluted Common Stock shall not mean or include any Common Stock or Common
Stock Equivalents of BOXL or PubCo issued or issuable in connection with (A) an IPO, (B) any Common Stock or Common Stock Equivalents
of PubCo that are owned by stockholders of PubCo, other than stockholders of BOXL immediately following a Reverse Merger Transaction,
(C) any Common Stock or Common Stock Equivalents issuable upon conversion of the Marlborough Note or the Everest Note, and/or
(D) any private placement of securities of BOXL under Rule 144 (a “Private Placement”) resulting in
the issuance of Common Stock or Common Stock Equivalents; provided, that the net proceeds of such Private Placement shall be to
reduce Indebtedness and for working capital for BOXL and its consolidated Subsidiaries.

 

II.       REPRESENTATIONS
BY EVEREST AND THE TRUST. Everest and the Trust each severally as to themselves only, and not jointly and severally, represent
to the Company, as follows:

 

2.1       Authorization;
Enforceability. Each of Everest and the Trust has all legal right, power and authority to enter into, execute and deliver
this Agreement in connection with the consummation of the transactions contemplated hereby, and to perform fully its obligations
hereunder. All action on the part of Everest and the Trust, its directors, stockholders and trustee, respectively, that is necessary
for the (a) authorization execution, delivery and performance of this Agreement; and (b) authorization for the conversions of
the Everest Note and the Marlborough Note has been taken. This Agreement has been duly executed and delivered by each of Everest
and the Trust and constitutes a legal, valid and binding obligation, enforceable against Everest and the Trust in accordance with
its terms, subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law
governing specific performance, injunctive relief or other equitable remedies, and to limitations of public policy.

 

2.2       No
Conflict; Governmental Consents.The execution and delivery by the Everest and the Trust of this Agreement, and the consummation
of the transactions contemplated hereby or thereby do not and will not (i) result in the violation of any law, statute, rule,
regulation, order, writ, injunction, judgment or decree of any court or governmental authority to or by which the Company is bound
including without limitation all foreign, federal, state and local laws applicable to Everest or the Trust that would have a material
adverse effect on either Everest or the Trust, (ii) conflict with or violate any provision of Everest’s Articles of Incorporation
or Bylaws (collectively, the “Everest Charter Documents”) or the trust agreement of the Trust, and (iii) conflict
with, or result in a material breach or violation of, any of the terms or provisions of, or constitute (with or without due notice
or lapse of time or both) a default or give to others any rights of termination, amendment, acceleration or cancellation (with
or without due notice, lapse of time or both) under any agreement, credit facility, lease, loan agreement, mortgage, security
agreement, trust indenture or other agreement or instrument to which Everest or the Trust is a party.

 

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III.       REPRESENTATIONS
BY AND WARRANTIES OF THE COMPANY

 

The
Company hereby represents and warrants to Everest and the Trust that:

 

3.1       Organization,
Good Standing and Qualification. The Company is a corporation duly organized, validly existing and in good standing under
the laws of the State of Nevada and has full corporate power and authority to own and use its properties and its assets and conduct
its business as currently conducted. Each of the Company’s subsidiaries (the “Subsidiaries”) is an entity
duly organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation with the requisite
corporate power and authority to own and use its properties and assets and to conduct its business as currently conducted. Neither
the Company, nor any of its Subsidiaries is in violation of any of the provisions of their respective articles of incorporation,
by-laws or other organizational or charter documents, including, but not limited to the Charter Documents (as defined below).
Each of the Company and its Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation
in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may be, would not result in a direct and/or indirect
(i) material adverse effect on the legality, validity or enforceability of this Agreement, (ii) material adverse effect on the
results of operations, assets, business, condition (financial and other) or prospects of the Company and its Subsidiaries, taken
as a whole, or (iii) material adverse effect on the Company’s ability to perform in any material respect on a timely basis
its obligations under this Agreement (any of (i), (ii) or (iii), a “Material Adverse Effect”).

 

3.2       Capitalization.
The authorized issued and outstanding shares of capital stock of the Company and all notes, warrants and stock options are disclosed
and set forth in the Registration Statement. All of such outstanding shares have been duly authorized, validly issued and are
fully paid and non-assessable. No shares of Common Stock are subject to preemptive rights or any other similar rights or any liens
or encumbrances suffered or permitted by the Company. Except as set forth in the Company’s Registration Statement (i) there
are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating
to, or securities or rights convertible into, any shares of capital stock of the Company, or contracts, commitments, understandings
or arrangements by which the Company is or may become bound to issue additional shares of capital stock of the Company or options,
warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights
convertible into, any shares of capital stock of the Company, (ii) there are no outstanding debt securities and (iii) there are
no agreements or arrangements under which the Company is obligated to register the sale of any of their securities under the Securities
Act, and (iv) there are no outstanding registration statements and there are no outstanding comment letters from the SEC or any
other regulatory agency. There are no securities or instruments containing anti-dilution or similar provisions that will be triggered
by the issuance of the Shares as described in this Agreement. The Shares, when issued, will be free and clear of all pledges,
liens, encumbrances and other restrictions (other than those arising under federal or state securities laws as a result of the
issuance of the Shares). No co-sale right, right of first refusal or other similar right exists with respect to the Shares or
the issuance and sale thereof. The issue and sale of the Shares will not result in a right of any holder of Company securities
to adjust the exercise, exchange or reset price under such securities. The Company has made available to the Note Holders true
and correct copies of the Company’s Articles of Incorporation, and as in effect on the date hereof (the “Articles
of Incorporation”), and the Company’s By-laws, as in effect on the date hereof (the “By-laws”).

 

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3.3       Authorization;
Enforceability. The Company has all corporate right, power and authority to enter into, execute and deliver this Agreement
and each other agreement, document, instrument and certificate to be executed by the Company in connection with the consummation
of the transactions contemplated hereby, including, but not limited to this Agreement and to perform fully its obligations hereunder
and thereunder. All corporate action on the part of the Company, its directors and stockholders necessary for the (a) authorization
execution, delivery and performance of this Agreement by the Company; and (b) authorization, sale, issuance and delivery of the
Everest Conversion Shares and the Marlborough Conversion Shares contemplated hereby and the performance of the Company’s
obligations under this Agreement has been taken. This Agreement has been duly executed and delivered by the Company and each constitutes
a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its respective terms,
subject to laws of general application relating to bankruptcy, insolvency and the relief of debtors and rules of law governing
specific performance, injunctive relief or other equitable remedies, and to limitations of public policy. The Shares are duly
authorized and, when issued and paid for in accordance with the applicable this Agreement, will be duly and validly issued, fully
paid and non-assessable, free and clear of all Encumbrances other than restrictions on transfer provided for in this Agreement.
The issuance and sale of the Shares contemplated hereby will not give rise to any preemptive rights or rights of first refusal.

 

3.4       No
Conflict; Governmental Consents.

 

(a)       The
execution and delivery by the Company of this Agreement, the issuance of the Everest Conversion Shares and the Marlborough Conversion
Shares and the consummation of the other transactions contemplated hereby or thereby do not and will not (i) result in the violation
of any law, statute, rule, regulation, order, writ, injunction, judgment or decree of any court or governmental authority to or
by which the Company is bound including without limitation all foreign, federal, state and local laws applicable to its business
and all such laws that affect the environment, except in each case as could not have or reasonably be expected to result in a
Material Adverse Effect, (ii) conflict with or violate any provision of the Company’s Articles of Incorporation (the “Articles”),
as amended or the Bylaws, (and collectively with the Articles, the “Charter Documents”) of the Company, and (iii)
conflict with, or result in a material breach or violation of, any of the terms or provisions of, or constitute (with or without
due notice or lapse of time or both) a default or give to others any rights of termination, amendment, acceleration or cancellation
(with or without due notice, lapse of time or both) under any agreement, credit facility, lease, loan agreement, mortgage, security
agreement, trust indenture or other agreement or instrument to which the Company or any Subsidiary is a party or by which any
of them is bound or to which any of their respective properties or assets is subject, nor result in the creation or imposition
of any Encumbrances upon any of the properties or assets of the Company or any Subsidiary.

 

(b)       No
approval by the holders of Common Stock, or other equity securities of the Company is required to be obtained by the Company in
connection with the authorization, execution, delivery and performance of this Agreement or in connection with the authorization,
and issuance of the Everest Conversion Shares and the Marlborough Conversion Shares except as has been previously obtained.

 

(c)       No
consent, approval, authorization or other order of any governmental authority or any other person is required to be obtained by
the Company in connection with the authorization, execution, delivery and performance of this Agreement or in connection with
the authorization, and, upon issuance the Everest Conversion Shares and the Marlborough Conversion Shares, except such post-sale
filings as may be required to be made with the SEC and with any state or foreign blue sky or securities regulatory authority,
all of which shall be made when required.

 

    	4

    	 

    

 

3.5       Consents
of Third Parties. No vote, approval or consent of any holder of capital stock of the Company or any other third parties is
required or necessary to be obtained by the Company in connection with the authorization, execution, deliver and performance of
this Agreement or in connection with the authorization and issuance of the Everest Conversion Shares and the Marlborough Conversion
Shares, except as previously obtained, each of which is in full force and effect.

 

3.6       Litigation.

 

(a)       On
June 1, 2017, a lawsuit was commenced against the Company, and certain of its affiliates by Skyview Capital, LLC (“Skyview”),
in Los Angeles, CA Superior Court. On April 1, 2016, pursuant to a membership interest purchase agreement, the Company acquired
100% of the membership interest in Mimio, from Mim Holdings, Inc., a Delaware corporation wholly-owned by a trust established
for the benefit of members of the families of affiliates of VC2 Partners LLC, in exchange for a four percent $2,000,000 unsecured
convertible promissory note due March 31, 2019 (the “Marlborough Note”), and the assumption of an original six percent
$3,425,000 senior secured note of Mim Holdings due July 3, 2016 that was payable Skyview, the former equity owner of Mimio (the
“Skyview Note”). The Skyview Note was originally issued by Mim Holdings to Skyview on November 4, 2015 as payment
for the acquisition of 100% of the membership equity of Mimio by Mim Holdings. On July 5, 2016, Skyview, the Company and Mim Holdings
entered into an amendment to the Skyview Note, effective as of June 30, 2016 and, on August 3, 2016, Boxlight Parent and Skyview
entered into a second amendment to the original Mimio purchase agreement. The suit alleges breach of an unpaid promissory note
in $1,460,508 principal amount that is secured by a lien on the Company’s assets and breach of guaranties. Skyview is seeking,
among other things, (i) damages arising from breach of the promissory note and guarantees in the amount of no less than $1,460,507.50,
plus accrued interest, (ii) a judgment to foreclose upon certain of the Company’s assets, (iii) a judgment for immediate
possession of certain personal property; and (iv) the return of the entire membership interest in Mimio.

 

(b)       Except
as set forth above and as disclosed in the Registration Statement, the Company knows of no other pending or threatened legal or
governmental proceedings against the Company or any Subsidiary which could materially adversely affect the business, property,
financial condition or operations of the Company and its Subsidiaries, taken as a whole, or which materially and adversely questions
the validity of this Agreement or the right of the Company to enter into this Agreement, or to perform its obligations hereunder
and thereunder. Neither the Company nor any Subsidiary is a party or subject to the provisions of any order, writ, injunction,
judgment or decree of any court or government agency or instrumentality which could materially adversely affect the business,
property, financial condition or operations of the Company and its Subsidiaries taken as a whole. There is no action, suit, proceeding
or investigation by the Company or any Subsidiary currently pending in any court or before any arbitrator or that the Company
or any Subsidiary intends to initiate. Neither the Company nor any Subsidiary, nor any director or officer thereof, is or since
the filing of the Registration Statement has been the subject of any action involving a claim of violation of or liability under
federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the Company’s knowledge,
there is not pending or contemplated, any investigation by the SEC involving the Company or any current or former director or
officer of the Company.

 

    	5

    	 

    

 

 IV. COVENANTS OF THE COMPANY

 

4.1       Transfer
Restrictions.

 

(a)       The
may only be disposed of in compliance with state and federal securities laws. In connection with any transfer of the Everest Conversion
Shares and the Marlborough Conversion Shares other than pursuant to an effective registration statement or Rule 144 promulgated
under the Securities Act, to the Company or to an affiliate of a Note Holders or in connection with, the Company may require the
transferor thereof to provide to the Company an opinion of counsel selected by the transferor and reasonably acceptable to the
Company, the form and substance of which opinion shall be reasonably satisfactory to the Company, to the effect that such transfer
does not require registration of such transferred the Everest Conversion Shares and the Marlborough Conversion Shares under the
Securities Act. As a condition of transfer, any such transferee shall agree in writing to be bound by the terms of this Agreement,
and shall have the rights of a Note Holders under this Agreement.

 

(b)       The
Note Holders agrees to the imprinting, so long as is required by this Section 5.1, of a legend on any of the Shares, in the following
form:

 

THIS
SECURITY HAS NOT BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN RELIANCE
UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF
WHICH SHALL BE REASONABLY ACCEPTABLE TO THE COMPANY.

 

(c)       Certificates
evidencing the Everest Conversion Shares and the Marlborough Conversion Shares shall not contain any legend (including the legend
set forth in Section 5.1(b) hereof): (i) while a registration statement covering the resale of such security is effective under
the Securities Act, or (ii) following any sale of such the Everest Conversion Shares and the Marlborough Conversion Shares pursuant
to Rule 144, or (iii) if such legend is not required under applicable requirements of the Securities Act (including judicial interpretations
and pronouncements issued by the staff of the SEC). The Company shall cause its counsel, at the Company’s expense, to issue
a legal opinion to the Company’s transfer agent promptly if required by the Company’s transfer to effect the removal
of the legend hereunder.

 

4.2       Reservation
of Shares. The Company shall at all times reserve from its duly authorized shares of Common Stock of a number of shares of
Common Stock sufficient to allow for the issuance of the Everest Conversion Shares and the Marlborough Conversion Shares.

 

    	6

    	 

    

 

4.3       Replacement
of the Everest Conversion Shares and the Marlborough Conversion Shares. If any certificate or instrument evidencing any Everest
Conversion Shares and the Marlborough Conversion Shares is mutilated, lost, stolen or destroyed, the Company shall issue or cause
to be issued in exchange and substitution for and upon cancellation thereof, or in lieu of and substitution therefor, a new certificate
or instrument, but only upon receipt of evidence reasonably satisfactory to the Company of such loss, theft or destruction and
customary and reasonable indemnity, if requested. The applicants for a new certificate or instrument under such circumstances
shall also pay any reasonable third-party costs associated with the issuance of such replacement Everest Conversion Shares or
Marlborough Conversion Shares. If a replacement certificate or instrument evidencing any of the Everest Conversion Shares or Marlborough
Conversion Shares is requested due to a mutilation thereof, the Company may require delivery of such mutilated certificate or
instrument as a condition precedent to any issuance of a replacement.

 

4.4       Form
D; Blue Sky Filings. The Company agrees to timely file a Form D with respect to the Everest Conversion Shares and the Marlborough
Conversion Shares, to the extent applicable, under Regulation D promulgated under the Securities Act. The Company shall take such
action as the Company shall reasonably determine is necessary in order to obtain an exemption for, or to qualify the Shares for,
sale to the Note Holders at the Closing under applicable securities or “Blue Sky” laws of the states of the United
States, and shall provide evidence of such actions promptly upon request of any Note Holders.

 

4.5       Indemnification.

 

(a)       The
Company agrees to indemnify and hold harmless each of Everest and the Trust, its affiliates and their respective officers, directors,
employees, trustee agents and controlling persons (collectively, the “Indemnified Parties”) from and against
, any and all loss, liability, damage or deficiency suffered or incurred by any Indemnified Party by reason of any misrepresentation
or breach of warranty by the Company or, after any applicable notice and/or cure periods, nonfulfillment of any covenant or agreement
to be performed or complied with by the Company under this Agreement, this Agreement; and will promptly reimburse the Indemnified
Parties for all expenses (including reasonable fees and expenses of legal counsel) as incurred in connection with the investigation
of, preparation for or defense of any pending or threatened claim related to or arising in any manner out of any of the foregoing,
or any action or proceeding arising therefrom (collectively, “Proceedings”), whether or not such Indemnified
Party is a formal party to any such Proceeding.

 

(b)       If
for any reason (other than a final non-appealable judgment finding any Indemnified Party liable for losses, claims, damages, liabilities
or expenses for its gross negligence or willful misconduct) the foregoing indemnity is unavailable to an Indemnified Party or
insufficient to hold an Indemnified Party harmless, then the Company shall contribute to the amount paid or payable by an Indemnified
Party as a result of such loss, claim, damage, liability or expense in such proportion as is appropriate to reflect not only the
relative benefits received by the Company on the one hand and the Advisor on the other, but also the relative fault by the Company
and the Indemnified Party, as well as any relevant equitable considerations.

 

4.6       Non-Public
Information. Except with respect to the material terms and conditions of the transactions contemplated by this Agreement,
the Company covenants and agrees that neither it, nor any other person acting on its behalf, will provide Note Holders or its
agents or counsel with any information that the Company believes constitutes material non-public information, unless prior thereto
Note Holders shall have executed a written agreement regarding the confidentiality and use of such information. The Company understands
and confirms that Note Holders shall be relying on the foregoing covenant in effecting transactions in the Everest Conversion
Shares and the Marlborough Conversion Shares.

 

    	7

    	 

    

 

V.       MISCELLANEOUS

 

5.1       Except
as otherwise provided herein, this Agreement shall not be changed, modified or amended except by a writing signed by the parties
to be charged, and this Agreement may not be discharged except by performance in accordance with its terms or by a writing signed
by the party to be charged. No waiver of any default with respect to any provision, condition or requirement of this Agreement
shall be deemed to be a continuing waiver in the future or a waiver of any subsequent default or a waiver of any other provision,
condition or requirement hereof, nor shall any delay or omission of any party to exercise any right hereunder in any manner impair
the exercise of any such right.

 

5.2       This
Agreement shall be binding upon and inure to the benefit of the parties hereto and to their respective heirs, legal representatives,
successors and assigns. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written
consent of Note Holders (other than by merger). Note Holders may assign any or all of its rights under this Agreement to any person
to whom Note Holders assigns or transfers any Everest Conversion Shares or Marlborough Conversion Shares, provided that such transferee
agrees in writing to be bound, with respect to the transferred Shares, by the provisions of this Agreement

 

5.3       This
Agreement, together with the exhibits and schedules thereto, contain the entire understanding of the parties with respect to the
subject matter hereof and supersede all prior agreements and understandings, oral or written, with respect to such matters, which
the parties acknowledge have been merged into such documents, exhibits and schedules.

 

5.4       Upon
the execution and delivery of this Agreement by the Note Holders and the Company, this Agreement shall become a binding obligation
of the Note Holders with respect to the conversion of the Everest Note and the Marlborough Note on the Conversion Date, and a
binding obligation of the Company to issue the Everest Conversion Shares and the Marlborough Conversion Shares on the Conversion
Date, as herein provided.

 

5.5       All
questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by and construed
and enforced in accordance with the internal laws of the State of New York, without regard to the principles of conflicts of law
thereof. Each party agrees that all legal proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other this Agreement (whether brought against a party hereto or its respective affiliates,
directors, officers, shareholders, employees or agents) shall be commenced exclusively in the state and federal courts sitting
in the City of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting
in the City of New York, borough of Manhattan for the adjudication of any dispute hereunder or in connection herewith or with
any transaction contemplated hereby or discussed herein (including with respect to the enforcement of any of this Agreement),
and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally
subject to the jurisdiction of any such court, that such suit, action or proceeding is improper or is an inconvenient venue for
such proceeding.

 

    	8

    	 

    

 

5.6       In
order to discourage frivolous claims the parties agree that unless a claimant in any proceeding arising out of this Agreement
succeeds in establishing his claim and recovering a judgment against another party (regardless of whether such claimant succeeds
against one of the other parties to the action), then the other party shall be entitled to recover from such claimant all of its/their
reasonable legal costs and expenses relating to such proceeding and/or incurred in preparation therefor.

 

5.7       The
holding of any provision of this Agreement to be invalid or unenforceable by a court of competent jurisdiction shall not affect
any other provision of this Agreement, which shall remain in full force and effect. If any provision of this Agreement shall be
declared by a court of competent jurisdiction to be invalid, illegal or incapable of being enforced in whole or in part, such
provision shall be interpreted so as to remain enforceable to the maximum extent permissible consistent with applicable law and
the remaining conditions and provisions or portions thereof shall nevertheless remain in full force and effect and enforceable
to the extent they are valid, legal and enforceable, and no provisions shall be deemed dependent upon any other covenant or provision
unless so expressed herein.

 

5.8       It
is agreed that a waiver by either party of a breach of any provision of this Agreement shall not operate, or be construed, as
a waiver of any subsequent breach by that same party.

 

5.9       The
Company agrees to execute and deliver all such further documents, agreements and instruments and take such other and further action
as may be necessary or appropriate to carry out the purposes and intent of this Agreement.

 

5.10       This
Agreement may be executed in two or more counterparts each of which shall be deemed an original, but all of which shall together
constitute one and the same instrument. In the event that any signature is delivered by facsimile transmission or by e-mail delivery
of a “.pdf” format data file, such signature shall create a valid and binding obligation of the party executing (or
on whose behalf such signature is executed) with the same force and effect as if such facsimile or “.pdf” signature
page were an original thereof.

 

5.11       Nothing
in this Agreement shall create or be deemed to create any rights in any person or entity not a party to this Agreement.

 

5.12       In
addition to being entitled to exercise all rights provided herein or granted by law, including recovery of damages, the Note Holders
and the Company will be entitled to specific performance under this Agreement. The parties agree that monetary damages may not
be adequate compensation for any loss incurred by reason of any breach of obligations described in the foregoing sentence and
hereby agrees to waive in any action for specific performance of any such obligation the defense that a remedy at law would be
adequate.

 

*****************************

 

Signature
page follow

 

    	9

    	 

    

 

IN
WITNESS WHEREOF, the Note Holders and the Company have caused this Subscription Agreement to be duly executed as of
the __ day of June 2017.

 

	 	COMPANY:
	 	 
	 	BOXLIGHT
    CORPORATION
	 	 	                              
	 	By:	 
	 	Name:	Mark
    Elliott
	 	Title:	CEO
	 	 	 
	 	EVEREST
    DISPLAY, INC.
	 	 	 
	 	By:	 
	 	Name:	Alex
    Kuo
	 	Title:	President
	 	 	 
	 	THE
    MARLBOROUGH TRUST
	 	 	 
	 	By:	 
	 	Name:	 
	 	Title:	Trustee

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