Document:

EX-10.7

 Exhibit 10.7 

Amendment #1 to Consulting Agreement 

This Amendment No. 1 to the Consulting Agreement (“Amendment”) is made as of August 8, 2019 (“Effective Date”),
by and between Atea Pharmaceuticals, Inc. (“Company”) and Danforth Advisors, LLC (“Consultant” or “Danforth”) and amends that certain Consulting Agreement by and between the Company and Danforth made effective as of
July 31, 2019 (“ Agreement” ). Capitalized terms used but not defined herein shall have the respective meaning set forth in the Agreement. 

WHEREAS, Danforth is engaged by the Company under the terms and conditions of the Consulting Agreement; and 

NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements herein contained and for the other good and
valuable consideration, receipt of which is hereby acknowledge , the parties hereby agree to revise and amend Exhibit A to the Agreement, as follows: 
  

	 	1.	 Exhibit A - is modified to add the services of Managing Director, Lance Thibault, and Controller, Michael
Casey; and to revise the Schedule and Fees as further specified and attached hereto in Exhibit A-1 which is added to the Agreement in its entirety. 

 

	 	2.	 Except as specifically provided for in this Amendment, the terms of the Agreement shall be unmodified and shall
remain in full force and effect. 

 This Amendment may be executed in one or more counterparts, each of which shall be considered an
original instrument , but all of which shall be considered one and the same Amendment, and shall become binding when one or more counterparts have been signed by each of the parties and delivered to the other. 

IN WITNESS WHEREOF, this Amendment has been executed by the Company and Danforth Advisors, LLC to be effective as of the Effective Date. 

 

					
	DANFORTH ADVISORS, LLC	 		  	ATEA PHARMACEUTICALS, INC.
			
	 /s/ Gregg Beloff
	 		  	 /s/ Andrea Corcoran

			
	 Gregg Beloff
	 		  	 Andrea Corcoran

	Print Name	 		  	Print Name
			
	 Managing Director
	 		  	 Exec. VP, Legal; Administration

	Title	 		  	Title
			
	 August 19, 2019
	 		  	 August 15, 2019

	Date	 		  	Date

 CONSULTING AGREEMENT 

This Consulting Agreement (the “Agreement”) is made effective as of July 31 , 2019 (the “Effective Date”), by and between Atea
Pharmaceuticals, Inc., a Delaware corporation, with its principal place of business being 125 Summer Street, Boston, MA 02110 (the “Company”) and Danforth Advisors, LLC, a Massachusetts limited liability corporation, with its principal
place of business being 91 Middle Road, Southborough, MA 01772 (“Danforth”). The Company and Danforth are herein sometimes referred to individually as a “Party” and collectively as the “Parties.” 

WHEREAS, the Company is engaged in the discovery and development of antiviral therapeutics and possesses
know-how and proprietary technology related thereto; and 
 WHEREAS, Danforth has expertise in
financial and corporate operations and strategy; and 
 WHEREAS, Danforth desires to serve as an independent consultant for the purpose of
providing the Company with certain strategic and financial advice and support services, as more fully described in Exhibit A attached hereto, (the “Services”); and 

WHEREAS, the Company wishes to engage Danforth on the terms and conditions set forth herein. 

NOW THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which are hereby acknowledged,
the Parties agree and covenant as follows. 
  

	1.	 Services of Consultant. Danforth will undertake and perform in a professional, competent and timely
manner the Services described in Exhibit A attached hereto. Danforth and the Company will review the Services on a monthly basis to prioritize and implement the tasks listed on Exhibit A. Consultant may not subcontract or otherwise
delegate Consultant’s obligations under this Agreement without the Company’s prior written consent, and in the event the Company gives such consent, Consultant will remain fully liable to the Company for the performance of all permitted
employees, independent contractors, agents or representatives of Consultant (each, an “Authorized Representative”). 

  

	2.	 Compensation for Services. In full consideration of Danforth’s full, prompt and faithful
performance of the Services, the Company shall compensate Danforth a consulting fee more fully described in Exhibit A (the “Consulting Fee”). Danforth shall, from time to time, but not more frequently than twice per calendar month,
invoice the Company for Services rendered, and the undisputed portion of such invoice will be paid upon fifteen (15) days of receipt. Each month the Parties shall evaluate jointly the current fee structure and scope of Services. Danforth
reserves the right to an annual increase in consultant rates of up to 4%, effective on January 1 of each year. Upon termination of this Agreement pursuant to Section 3, no compensation or benefits of any kind as described in

	 	this Section 2 shall be payable or issuable to Danforth after the effective date of such termination. In addition, the Company will reimburse Danforth for reasonable and necessary out-of-pocket business expenses, including but not limited to travel and parking, incurred by Danforth in performing the Services hereunder, upon submission by Danforth of supporting documentation reasonably
acceptable to the Company. Any such accrued expenses in any given three (3) month period that exceed one thousand dollars ($1,000) shall be submitted to the Company for its prior written approval. 

All Danforth invoices and billing matters should be addressed 
  

					
		 	to: Company Contact:	  	David Blanchard
		 		  	Blanchard.David@ateapharma.com
		 		  	857-284-8891
		 		  	Atea Pharmaceuticals, Inc.
		 		  	125 Summer Street, Suite 1675
		 		  	Boston, MA 02110

 All Company payments and billing inquiries should be addressed to: 

 

					
		 	Danforth Accounting:	  	Betsy Sherr
		 		  	bsherr@danforthadvisors.com
		 		  	(508) 277-0031
		 		  	Danforth Advisors
		 		  	PO Box 335
		 		  	Southborough, MA 01772

  

	3.	 Term and Termination. The term of this Agreement will commence on the Effective Date and will continue
until such time as either party has given notice of termination pursuant to this paragraph 3 (the “Term”). This Agreement may be terminated by either Party hereto: (a) with Cause (as defined below), upon ten (10) days prior
written notice to the other Party; or (b) without Cause upon sixty (60) days prior written notice to the other Party. For purposes of this Section 3, “Cause” shall include: (i) a breach of the terms of this Agreement
which is not cured within ten (10) days of written notice of such default or (ii) the commission of any act of fraud, embezzlement or deliberate disregard of a rule or policy of the Company. 

 

	4.	 Time Commitment. Danforth will devote such time to perform the Services under this Agreement as may
reasonably be required. 

  

	5.	 Place of Performance. Danforth will perform the Services at such locations upon which the Company and
Danforth may mutually agree. Danforth will not, without the prior written consent of the Company, perform any of the Services at any facility or in any manner that might give anyone other than the Company any rights to any Inventions (as defined
below) or Confidential Information (as defined below) or allow for disclosure of any Confidential Information. 

  

	6.	 Compliance with Policies and Guidelines. Danforth will perform the Services in accordance with all rules
or policies adopted by the Company that the Company discloses in writing to Danforth. 

  
 1 

	7.	 Confidential Information. Danforth acknowledges and agrees that during the course of performing the
Services, Danforth may receive, come into possession of or otherwise become aware of technical, scientific and non-technical and non-scientific information relating to
the Company and its business, including, without limitation information relating to the Company’s strategy, products and technologies and any derivatives, improvements and enhancements related to any of the foregoing or to the Company’s
suppliers or business partners (collectively, “Confidential Information”) whether in graphic, written, electronic or oral form. Confidential Information may be labeled or identified at the time of disclosure as confidential or proprietary,
or equivalent, but Confidential Information also includes information which by its context would reasonably be deemed to be confidential and proprietary. “Confidential Information” also includes, without limitation, unpublished patent
applications and other intellectual property filings, ideas, work product, techniques, works of authorship, models, inventions, compounds, compositions, know-how, processes, algorithms, formulae, information
and trade secrets as well as financial information (including sales forecasts, profits, pricing methods and models), research data, clinical data, prospect and supplier lists, investors, employees, business and contractual relationships (including
with third parties), and business and marketing plans and any derivatives, improvements and enhancements related to any of the above. Information the Company provides to Danforth or Danforth otherwise acquires regarding third parties as to which the
Company has an obligation of confidentiality also constitutes “Confidential Information.” 

 Danforth
acknowledges that the Confidential Information or any part thereof is the exclusive property of the Company and shall be used by Danforth solely in connection with the performance of the Services. Danforth agrees not to disclose Confidential
Information to any third party without first obtaining the written consent of the Company. Danforth further agrees to take all practical steps to ensure that the Confidential Information, and any part thereof, shall not be disclosed or issued to its
Authorized Representatives, except to the extent such Authorized Representatives have a need to know such Confidential Information to perform the Services and such Authorized Representatives are subject to like terms of confidentiality and nonuse.
Consultant shall be responsible for the breach of this Agreement by its Authorized Representatives as if such breach were by Consultant itself. 

The above provisions of confidentiality and nonuse set forth herein shall survive for a period of three (3) years after the termination of
this Agreement. 
 Consultant will not disclose or otherwise make available to the Company in any manner any confidential information
received by Consultant under obligations of confidentiality from a third party. 
  

	8.	 Intellectual Property. Danforth agrees that all ideas, inventions, works of authorship, work product,
discoveries, creations, manuscripts, properties, innovations, improvements, know-how, designs, developments, apparatus, techniques, methods, and formulae that

  
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Danforth conceives, makes, develops or improves as a result of performing the Services or which is derived from Confidential Information, whether or not reduced to practice and whether or not
patentable, alone or in conjunction with any other party and whether or not at the request or upon the suggestion of the Company (all of the foregoing being hereinafter collectively referred to as the “Inventions”), shall be the sole and
exclusive property of the Company. 

 Danforth hereby agrees in consideration of the Company’s agreement to engage
Danforth and pay compensation for the Services rendered to the Company and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged that Danforth shall not, without the prior written consent of the
Company, directly or indirectly, consult for, or become an employee of, any company which conducts business in the Field of Interest anywhere in the world. As used herein, the term “Field of Interest” shall mean the research, development,
manufacture and/or sale of the products resulting from the Company’s technology, intellectual property or other rights owned or controlled by the Company. The limitations on competition contained in this Section 8 shall continue during the
time that Danforth performs any Services for the Company, and for a period of six (6) months following the termination of any such Services that Danforth performs for the Company. If any part of this section should be determined by a court of
competent jurisdiction to be unreasonable in duration, geographic area, or scope, then this Section 8 is intended to and shall extend only for such period of time, in such area and with respect to such activity as is determined to be
reasonable. Except as expressly provided herein, nothing in this Agreement shall preclude Danforth from consulting for or being employed by any other person or entity. 
  

	9.	 Non Solicitation. All personnel representing Danforth are employees or contracted agents of Danforth.
Accordingly, they are not retainable as employees or contractors by the Company and the Company hereby agrees not to solicit, hire or retain their services for so long as they are employees or contracted agents of Danforth and for two (2) years
thereafter. Should the Company violate this restriction, it agrees to pay Danforth liquidated damages equal to thirty percent (30%) of the employee’s starting annual base salary and target annual bonus for each Danforth contracted agent hired
by the Company in violation of this Agreement, plus Danforth’s reasonable attorneys’ fees and costs incurred in enforcing this agreement should the Company fail or refuse to pay the liquidated damages amount in full within thirty
(30) days following its violation. 

  

	10.	 Placement Services. In the event that Danforth refers a potential employee to the Company and that
individual is hired, Danforth shall receive a fee equal to twenty percent (20%) of the employee’s starting annual base salary and target annual bonus. This fee is due and owing whether an individual is hired, directly or indirectly on a
permanent basis or on a contract or consulting basis by the Company, as a result of Danforth’s efforts within one (1) year of the date applicant(s) are submitted to the Company. Such payment is due within thirty (30) days of the
employee’s start date. 

  

	11.	 No Implied Warranty. Except for any express warranties stated herein, the Services are provided on an
“as is” basis, and the Company disclaims any and all other warranties, conditions, or representations (express, implied, oral or written), relating to the Services 

  
 3 

	 	
or any part thereof. Further, in performing the Services Danforth is not engaged to disclose illegal acts, including fraud or defalcations, which may have taken place. The foregoing
notwithstanding, Danforth will promptly notify the Company if Danforth becomes aware of any such illegal acts during the performance of the Services. Because the Services do not constitute an examination in accordance with standards established by
the American Institute of Certified Public Accountants (the “AICPA”), Danforth is precluded from expressing an opinion as to whether financial statements provided by the Company are in conformity with generally accepted accounting
principles or any other standards or guidelines promulgated by the AICPA, or whether the underlying financial and other data provide a reasonable basis for the statements. 

 

	12.	 Indemnification. Each Party hereto agrees to indemnify and hold the other Party hereto, its directors,
officers, agents and employees harmless against any third party claim based upon circumstances alleged to be inconsistent with such representations and/or warranties contained in this Agreement. Further, the Company shall indemnify and hold harmless
Danforth against any third party claims, losses, damages or liabilities (or actions in respect thereof) that arise out of or are based on the Services performed hereunder, except for any such claims, losses, damages or liabilities arising out of the
gross negligence or willful misconduct of Danforth. The Company will endeavor to add Danforth to its insurance policies as an additional insured. Furthermore, during the Term of this Agreement, Company shall maintain a Crime and Cyber Insurance
Policy that includes coverage for “Social Engineering” claims and extends coverage to Danforth. 

  

	13.	 Independent Contractor. Danforth is not, nor shall Danforth be deemed to be at any time during the term
of this Agreement, an employee of the Company, and therefore Danforth shall not be entitled to any benefits provided by the Company to its employees, if applicable. Danforth’s status and relationship with the Company shall be that of an
independent contractor and consultant. Danforth shall not state or imply, directly or indirectly, that Danforth is empowered to bind the Company without the Company’s prior written consent. Nothing herein shall create, expressly or by
implication, a partnership, joint venture or other association between the parties. Danforth will be solely responsible for payment of all charges and taxes arising from its relationship to the Company as a consultant. 

 

	14.	 Records. Upon termination of Danforth’s relationship with the Company, Danforth shall deliver to
the Company all Confidential Information and any other property of the Company which may be in its possession including products, project plans, materials, memoranda, notes, records, reports, laboratory notebooks, or other documents including work
product from the Services and all photocopies of the same and any such information stored using electronic medium. 

  

	15.	 Notices. Any notice under this Agreement shall be in writing (except in the case of verbal
communications, emails and teleconferences updating either Party as to the status of work hereunder) and shall be deemed delivered upon personal delivery, one day after being sent via a reputable nationwide overnight courier service or two days
after deposit in the mail or on the next business day following transmittal via facsimile. Notices under this Agreement shall be sent to the following representatives of the Parties: 

  
 4 

 If to the Company: 

 

			
	Name:	    	Jean-Pierre Sommadossi
	Title:	    	CEO and President
	Address:	    	Atea Pharmaceuticals, Inc.
		    	125 Summer Street, Suit 1675
		    	Boston, MA 02110
	Phone:	    	857-284-8891
	E-mail:	    	Sommadossi.jp@ateapharma.com

 If to Danforth: 
  

			
	Name:	    	Gregg Beloff
	Title:	    	Managing Director
	Address:	    	91 Middle Road Southborough, MA 01772
	Phone:	    	(617) 686-7679
	E-mail:	    	gbeloff@danforthadvisors.com

  

	16.	 Assignment and Successors. This Agreement may not be assigned by a Party without the consent of the
other which consent shall not be unreasonably withheld, except that each Party may assign this Agreement and the rights, obligations and interests of such Party, in whole or in part, to any of its Affiliates, to any purchaser of all or substantially
all of its assets or to any successor corporation resulting from any merger or consolidation of such Party with or into such corporation. 

  

	17.	 Force Majeure. Neither Party shall be liable for failure of or delay in performing obligations set forth
in this Agreement, and neither shall be deemed in breach of its obligations, if such failure or delay is due to natural disasters or any causes beyond the reasonable control of either Party. In the event of such force majeure, the Party affected
thereby shall use reasonable efforts to cure or overcome the same and resume performance of its obligations hereunder. 

  

	18.	 Headings. The Section headings are intended for convenience of reference only and are not intended to be
a part of or to affect the meaning or interpretation of this Agreement. 

  

	19.	 Integration; Severability. This Agreement is the sole agreement with respect to the subject matter
hereof and shall supersede all other agreements and understandings between the Parties with respect to the same. Notwithstanding the foregoing, the Confidentiality Agreement dated as of June 28, 2019 by and between the Parties shall survive
with respect to the information provided pursuant thereto prior to the date of this Agreement. If any provision of this Agreement is or becomes invalid or is ruled invalid by any court of competent jurisdiction or is deemed unenforceable, it is the
intention of the Parties that the remainder of the Agreement shall not be affected. 

  

	20.	 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the
Commonwealth of Massachusetts, excluding choice of law principles. 

  
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 The Parties agree that any action or proceeding arising out of or related in any way to this
Agreement shall be brought solely in a Federal or State court of competent jurisdiction sitting in the Commonwealth of Massachusetts. 
  

	21.	 Counterparts. This Agreement may be executed in counterparts, each of which will be deemed an original,
but all of which together will constitute one agreement. 

 If you are in agreement with the foregoing, please sign where indicated below,
whereupon this Agreement shall become effective as of the Effective Date.  

  
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	DANFORTH ADVISORS, LLC	 	ATEA PHARMACEUTICALS, INC.
					
	By:	  	 /s/ Daniel Geffken
	  		 	By:	 	 /s/ Andrea Corcoran

					
	Print Name:	  	 Daniel Geffken
	  		 	Print Name:	 	 Andrea Corcoran

					
	Title:	  	 Managing Director
	  		 	Title:	 	 Exec. VP, Legal Administration

					
	Date:	  	 August 5, 2019
	  		 	Date:	 	 August 5, 2019

  
 7Exhibit
10.1

 

SALLYPORT
COMMERCIAL FINANCE, LLC ACCOUNTS RECEIVABLE FINANCING AGREEMENT

 

THIS
ACCOUNTS RECEIVABLE FINANCING AGREEMENT (this “Agreement”) is entered into in Houston, Texas, between Sallyport
Commercial Finance, LLC (“Lender”), with offices at 14100 Southwest Freeway, Suite 210, Houston, Texas 77478, and
Boxlight, Inc., a Washington corporation (“Boxlight”), whose offices are located at 1045 Progress Circle,
Lawrenceville, GA. 30043, and EOSEDU, LLC, an Arizona limited liability company (“EOSUDU”), whose offices are
located at 8767 East Via De Ventura, Suite 126, Scottsdale, AZ 85258 (each, a “Borrower” and collectively
referred to as “Borrowers”). A reference herein to either Borrower, shall be a reference to each Borrower and
each Borrower and Lender agree to the following:

 

1.
Definitions and Index to Definitions. The following terms used herein shall have the following meaning. All capitalized
terms not herein defined shall have that meaning as set forth in the Uniform Commercial Code as enacted in the State of Texas
(the “UCC”).

 

1.1
“Accounts” shall have the meaning as set forth in the UCC, plus all contract rights, documents, notes, instruments
and all other forms of obligations owed to or owned by Borrower, all general intangibles relating thereto, all proceeds thereof,
all guaranties, supporting obligations and security therefore, and all goods and rights represented thereby and arising therefrom,
including, but not limited to, returned, reclaimed and repossessed goods and the rights of stoppage in transit, replevin and reclamation.

 

1.2
“Advance” See Schedule A, No. 2.

 

1.3
“Account Advance Base” means an amount equal to the Advance Rate multiplied by the Eligible Accounts, each
as determined by Lender from time to time in its sole and absolute discretion.

 

1.4
“Account Debtor” means the person or entity which is obligated on an Account, together with anything else defined
as an “account debtor” in the UCC.

 

1.5
“ACH” – the Automated Clearing House.

 

1.6
“Advance Rate” – See Schedule A, No. 3.

 

1.7
“Administrative Fee” – See Schedule A. No. 1.

 

1.8
“Affiliate” means with respect to any person or entity in question, any other person or entity owned or controlled
by, or which owns or controls or is under common control or is otherwise affiliated with such person or entity in question.

 

1.9
“Audit Fee” – See Schedule A, No. 4.

 

1.10
“Availability Pool” means, at the time of determination thereof, the maximum amount available for an Advance
to Borrower, as determined in accordance with the Availability Certificate. As used herein, the Availability Pool shall mean a
single Availability for both Borrowers in aggregate.

 

1.11
“Availability Certificate” means a certificate in the form of Schedule B attached hereto duly executed by an
authorized officer of Borrower or such other document in form acceptable to Lender in Lender’s sole discretion.

 

1.12
“Avoidance Claim” means the assertion, complaint, judgment or otherwise against Lender, any payment Lender
received with respect to any Account, whether the amount related thereto was paid by the Account Debtor, the Borrower, on behalf
of Borrower or for its benefit, or any lien granted to Lender is avoidable (or recoverable from Lender) under the Bankruptcy Code,
any other debtor relief statute, including, but not limited to, preference claims, fraudulent or voidable transfer claims, or
through receivership, assignment for the benefit of creditors or any equivalent recovery law, rule or regulation which relates
to the adjustment of debtor and creditor relations.

 

1.13
“Base Rate” – The highest prime rate publicly announced on the applicable date by The Wall Street Journal
as its prime or base rate or equivalent rate, or if The Wall Street Journal ceases to publish the prime rate, such other published
prime rate as chosen by Lender, in its sole discretion.

 

1.14
“BOXL” – Shall mean Boxlight Corporation, a Nevada corporation and the direct or indirect parent of Borrower.

 

1.15
“Collateral” – All of Borrower’s now owned or hereafter acquired Accounts, Equipment, Inventory,
Financial Assets, Chattel Paper, Electronic Chattel Paper, Letters of Credit, Letter of Credit Rights, General Intangibles, Investment
Property Goods, Deposit Accounts, Instruments, the Reserve, Commercial Tort Claims, Supporting Obligations, motor vehicles, all
books, records, files and computer data related to the foregoing, all proceeds of the foregoing and all goodwill related to the
Borrower and its assets and operations.

 

1.16
“Daily Balance” – The aggregate total of Advances made to Borrower which remain unpaid.

 

1.17
“Default Rate” – See Schedule A, No. 5.

 

1.18
“Dispute” - Any dispute, deduction, claim, offset, defense or counterclaim of any kind whatsoever, real or
imagined, regardless of whether the same is in an amount greater than, equal to or less than the Account concerned, regardless
of whether the same is valid or bona fide, regardless of whether the same in whole or in part relates to the Account on which
payment is being withheld or other Accounts or goods or services already paid for, and regardless of whether the same arises by
reason of an act of God, civil strife, war, currency restriction, foreign political restriction or regulation, or the like, or
any other reason.

 

1.19
“Effective Date” – See signature page.

 

    	Page 1 of 16

     

    

 

1.20
“Eligible Accounts” – An Account which is acceptable for an Advance as determined by Lender, in its sole
discretion.

 

1.21
“Environmental Laws” – Any federal, state or local law, rule, regulation or order relating to pollution,
waste disposal, industrial hygiene, land use or the protection of human health, safety, or welfare, plant life or animal life,
natural resources, the environment or property.

 

1.22
“Events of Default” – Shall have that meaning as set forth in Section 7.1 herein.

 

1.23
“Facility Fee” See Schedule A, No. 7.

 

1.24
“Invalid Invoice Fee” – Fifteen percent (15%) of the face amount of any assigned Account or $1,000.00,
whichever is higher, as liquidated damages for failure to comply with Section 4.6(a) herein.

 

1.25
“Maximum Facility Limit Amount” – See Schedule A, No. 9.

 

1.26
“Minimum Monthly Sales Shortfall Fee” – See Schedule A, No. 10.

 

1.27
“Minimum Monthly Sales” – See Schedule A, No. 11.

 

1.28
“Missing Notation Fee” – Fifteen percent (15%) of the face amount of any assigned Account, or $1,000.00
the higher thereof, as liquidated damages for failure to comply with Section 2.7.

 

1.29
“Misdirected Payment Fee” – Fifteen percent (15%) of the amount of any payment on account of any assigned
Account, or $1,000, the higher thereof which has been received by Borrower and not delivered to Lender within 2 business days
following receipt by Borrower.

 

1.30
“Obligations” – Shall mean and include each and all of the following: the obligation to pay and perform
when due all debts and all obligations, liabilities, covenants, agreements, guaranties, warranties and representations of Borrower
to Lender, of any and every kind and nature, whether heretofore, now or hereafter owing, arising, due or payable from Borrower
to Lender; howsoever created, incurred, acquired, arising or evidenced; whether primary, secondary, direct, absolute, contingent,
fixed, secured, unsecured, or otherwise; whether as principal or guarantor; liquidated or unliquidated; certain or uncertain;
determined or undetermined; due or to become due; as a result of present or future advances or otherwise; joint or individual;
pursuant to or caused by Borrower’s breach of this Agreement, or any other present or future agreement or instrument, or
created by operation of law or otherwise; evidenced by a written instrument or oral; created directly between Lender and Borrower
or owed by Borrower to a third party and acquired by Lender from such third party; monetary or nonmonetary.

 

1.31
“Online Reporting Service” – Shall mean the system set up on Lender’s website where Borrower provides
Lender with the pertinent data necessary for Lender to manage Accounts under this Agreement and otherwise administer this Agreement.

 

1.32
“Online Statement of Account” – Shall have that meaning as described in Section 2.8 herein.

 

1.33
“Original Term” – Shall mean the term of this Agreement commencing on the Effective Date and concluding
within the time frame as provided for in Schedule A, No. 12.

 

1.34
“Place of Business, Location of Collateral” – See Schedule A, No. 13.

 

1.35
“Records” – Shall have that meaning set forth in Section 5.4 herein.

 

1.36
“Renewal Term” – Shall mean each consecutive term as provided for in Section 2.10, and automatically
renewing for each consecutive period thereafter.

 

1.37 “Reserve”
– A bookkeeping account on the books of Lender representing that portion of the Eligible Account, for which an
Advance was not made that is maintained by Lender to ensure Borrower’s performance with the provisions
hereof.

 

1.38
“Trade Names and Styles” – Shall mean the trade names and styles set forth in Schedule A. No.
14.

 

2.
Financing.

 

2.1
Financing of Accounts. Borrower shall present to Lender Eligible Accounts for financing pursuant to this Agreement in the
Availability Certificate. Borrower agrees that it will do all of its business through Lender as Borrower’s sole lender and
Borrower hereby assigns to Lender, as its sole lender, all Accounts to act as Borrower’s sole collection agent and for Lender
to collect on Borrower’s behalf. Lender shall be under no obligation to finance Borrower’s Accounts and shall only
finance Accounts in its sole discretion. Unless Lender notifies Borrower to the contrary as to a specific Account, all Accounts
shall be deemed assigned by Borrower to Lender to act as Borrower’s sole collection agent upon presentment by Borrower.
Although an Account may appear on an Availability Certificate multiple times, the Account shall only be financed, if at all, or
deemed assigned for collection, the first time such Account appears on an Availability Certificate.

 

2.1.1
Application of Payments. As Accounts are paid by Account Debtors, such sums shall be applied to satisfy the Account due
from the Account Debtor that was assigned to Lender by Borrower hereunder. The Lender shall be entitled to apply all such collections
received to amounts due Lender from Borrower. Once Lender receives payment on an Account, Lender is authorized and directed to
and will apply the amount due Borrower against the amount Borrower owes Lender for Obligations.

 

    	Page 2 of 16

     

    

 

2.2
Value of Accounts Assigned and Advances Made. The value of Accounts at the time of their assignment is the gross amount
of the Account (the “Gross Invoice Amount”) less all credits, discounts and allowances at any time issued, owing or
granted to, or claimed or taken by the Account Debtor. An Advance may be made by Lender to Borrower on an Eligible Account, or
any portion thereof at any time in advance of the due date in Lender’s sole discretion. Any Advance by Lender to Borrower
on any Eligible Account shall not obligate the Lender to make an Advance on any other Eligible Account at any time. The total
Advances made hereunder that are then outstanding shall in aggregate at no time exceed the Maximum Facility Limit Amount. The
consideration provided Lender for the financing of any Accounts which are not Eligible Accounts at the time of their assignment
to Lender is the contingent increase in, and the amount of any increase in, the Availability Pool if and when such Accounts are
collected, less the respective Reserve; provided, however, if any such Accounts become Eligible Accounts after their assignment
to Lender, the consideration for the Lender’s management of such Accounts shall also include the amount of increase in the
Availability Pool resulting from such Accounts becoming Eligible Accounts. All Accounts assigned during any time in which the
Account Advance Base exceeds the Maximum Facility Limit Amount shall be deemed to be ineligible Accounts, and for this purpose
such ineligible Accounts may become Eligible Accounts, in Lender’s sole and absolute discretion, if and to the extent that
the Account Advance Base no longer exceeds the Maximum Facility Limit Amount. Lender shall be under no obligation to treat an
ineligible Account as an Eligible Account under the preceding sentence and the fact that it may have done so in the past shall
not obligate Lender to do so in the future.

 

2.3
Administrative Fees. Lender shall charge Borrower the Administrative Fee on the gross invoice amount reported as sales
on each Availability Certificate which shall be fully earned and payable upon presentation of each Availability Certificate, whether
or not an Advance is made against any such Account(s). The Facility Fee shall be fully earned and payable upon execution of this
Agreement.

 

2.4
Interest. Borrower will pay interest (hereafter referred to as “Interest”) on the Daily Balance. Interest will
be calculated daily at a rate per annum equal to the amount provided for in Schedule A, No. 18 (the “Interest Rate”)
and will be reserved during the course of the month but will be charged to Borrower’s account on the last day of the month.
However, the Base Rate will not be lower than the Base Rate Floor amount provided for in Schedule A, No. 19, at any time. The
Interest Rate will also be charged to Borrower on all other Obligations, except those specifying a different rate, from the date
incurred through the date paid. Any publicly announced decrease or increase in the Base Rate will result in an adjustment to the
Interest Rate on the next business day. After the occurrence of an Event of Default and for so long as such Event of Default continues,
all the Obligations will, at Lender’s option, with or without the notice to Borrower, bear interest at the Default Rate.
Interest will be calculated on the basis of a 360-day year for the actual number of days elapsed. In no event will the total amount
of interest received by Lender exceed the amount of interest permitted by applicable law and in the event excess interest is determined
by a court of competent jurisdiction to have been paid by Borrower to Lender, such excess interest will be applied as a credit
against the outstanding Obligations and Borrower will not have any action against Lender or any damages arising out of the payment
or collection of such excess interest. If an Account or any payment is charged back to Borrower after the collection date, Borrower
will pay Lender interest at the Interest Rate on such Account or on such payment.

 

2.5
Reserve. Lender shall charge and retain an amount equal to the inverse of the Advance Rate, of the gross face amount of
each Account assigned by Borrower for which an Advance was made by Lender, which amount shall be held as the Reserve. Lender may,
from time to time, at its sole discretion, charge the aggregate Reserve with: (a) any losses which may be incurred in relation
to any Account financed hereunder; (b) any Account that Lender determines are not Eligible Accounts; (c) anticipated fees identified
and payable under this Agreement; (d) any other obligation due to Lender under this Agreement; or (e) other amounts that Lender
deems appropriate in its sole discretion. Lender agrees to maintain the Reserve mentioned herein, the maintenance of which, however,
shall not vest the Borrower any right, title, or interest herein, it being understood that the account shall be kept as a reserve
to pay the Obligations of the Borrower incurred under the provisions of this Agreement. Provided that there is no Event of Default,
Lender, in its sole discretion, may initiate rebates to Borrower from the Reserve. Lender, in its sole discretion, may adjust
the percentage of the Reserve.

 

2.6
Mandatory Repayment. Lender may require that Borrower immediately repay, by payment of the then unpaid face amount of any
Advance made on an Account, if any, together with any unpaid fees and other amounts owed relating to any Account on demand, or
at Lender’s option, by Lender’s charge to the Reserve, upon the following events: (a) an Account is not paid by the
Account Debtor within ninety (90) days of the date set forth on the invoice for the Account; (b) Borrower has breached any warranties
or promises in this Agreement with regard to an unpaid Account; (c) Borrower and Account Debtor are involved in a Dispute of any
kind, regardless of validity; (d) the Account Debtor asserts a claim of loss of any kind against Borrower and/or Lender; and/or
(e) an insolvency or other financial inability of the Account Debtor to pay.

 

2.7
Assignments and Other Documentation. All bills and invoices for all Accounts assigned to Lender hereunder shall bear the
following legend: “This account is payable to [Borrower] as follows:

 

[insert
account information and address where account is to be paid]

 

In
the event that Borrower sends to an Account Debtor any invoice evidencing an Account which does not contain such notation (or
such other notation otherwise acceptable to Lender as provided for in this Section), it will be impracticable or extremely difficult
to determine the resulting damages suffered by Lender. It is therefore agreed that Borrower shall immediately pay to Lender as
liquidated damages the Missing Notation Fee. Borrower shall immediately provide to Lender such additional information as requested
by Lender relating to any Account. All bills and invoices for all Accounts shall be in a form acceptable to Lender containing
such terms and conditions as Lender requires.

 

2.8
Online Statement of Account. Lender shall post all of Borrower’s account activity on Lender’s website, which
shall constitute Borrower’s Online Statement of Account. Lender shall not send Borrower any hard copies of any activities
which constitute Borrower’s Online Statement of Account. Lender shall provide Borrower with continuous access to view the
Online Statement of Account. Borrower shall be solely responsible for checking its Online Statement of Account. If Borrower disputes
any entry on the Online Statement of Account it shall, within thirty (30) days after the first posting of the event, send to Lender
a written exception to such event. Unless Lender receives a timely written exception to the activity posted to the Online Statement
of Account, within thirty (30) days after it is first posted, the Online Statement of Account shall become an account stated and
be deemed accepted by Borrower and shall be conclusive and binding upon the Borrower.

 

    	Page 3 of 16

     

    

 

2.9
Credits and Returns. Borrower will issue credits over $5,000 (five thousand dollars) only with Lender’s prior written
approval, and only if claimed by the Account Debtor. In addition to the Accounts, Borrower hereby assigns and transfers to Lender
a security interest in and the right to administer, manage and collect, all of Borrower’s right, title and interest in and
to the goods the sale of which resulted in the creation of Accounts, and in all such goods that may be returned by Account Debtors,
and all causes of action and rights in connection therewith which Borrower now has or may hereafter acquire, including its rights
of reclamation, replevin and stoppage in transit and the rights as an unpaid vendor or lienor. Any goods so recovered shall be
treated as returned goods, and shall be set aside, marked with Lender’s name and held for Lender’s account as secured
party. Borrower shall notify Lender promptly of all such returns.

 

2.10
Term of this Agreement, Minimum Monthly Sales Shortfall Fee. This Agreement shall be in effect for the Original Term and
shall automatically renew for consecutive Renewal Terms unless terminated by Borrower or Lender as follows. Borrower may terminate
this Agreement upon providing Lender with written notice not more than ninety (90) days and not less than thirty (30) days prior
to the end of the Original Term or any Renewal Term, which written notice shall clearly state its intention to terminate at the
end of the current term. Lender may terminate this Agreement upon providing Borrower written notice of not less than Thirty (30)
days prior to the end of the Original Term or any Renewal Term, which notice shall clearly state its intention to terminate at
the end of the Current Term. In addition, Lender may terminate this Agreement at any time after an Event of Default. As consideration
for Lender making the necessary financial accommodations and foregoing other financing opportunities available in the market place,
Borrower agrees to pay the Lender during the Original Term and for each Renewal Term, the Minimum Monthly Sales Shortfall Fee
if, at the end of each monthly period, the actual monthly financing volume is less than the Minimum Monthly Sales. Lender may
charge Borrower with the amount of such deficiency in the form of an assessment of the Minimum Monthly Sales Shortfall Fee. If
Borrower terminates this Agreement at any time prior to the expiration of the Original Term, or any subsequent Renewal Term, or
if the Lender terminates this Agreement at any time upon the occurrence of an Event of Default, Borrower shall remain obligated
to pay the total of the Minimum Monthly Sales Shortfall Fee for the time remaining for the Original Term or Renewal Term, as the
case may be.

 

2.11
Other Operational Fees and Costs. Borrower shall pay Lender all other fees and costs incurred hereunder immediately when
due, including but not limited to all fees and costs set forth in Schedule A.

 

3.
Collateral, Grant of Security Interest, ACH Authorization.

 

3.1
Collateral. As security and collateral for and to secure repayment of the Obligations, Borrower hereby grants Lender a
continuing security interest in, and assigns to Lender, all of Borrower’s right, title and interest in and to the Collateral.

 

3.2
Filing Authorization. Borrower hereby authorizes Lender to file any document it deems necessary to perfect its security
interest in the Collateral, including but not limited to UCC-1 financing statements and any applicable amendments or continuation
statements.

 

3.3
ACH Authorization. In order to satisfy any of the Obligations and facilitate the assignment of Accounts, Lender is hereby
authorized by Borrower to initiate electronic debit or credit entries through the ACH. This authorization is irrevocable.

 

4.
Representations, Warranties and Covenants of Borrower. To induce Lender to enter into this Agreement, Borrower represents
and warrants that each of the following representations and warranties now is and hereafter will continue to be true and correct
in all respects and Borrower has and will timely perform each of the following covenants:

 

4.1
Existence and Power. If Borrower is a partnership, limited liability company or corporation, Borrower is and will continue
to be duly authorized, validly existing and in good standing under the laws of the jurisdiction of its organization. Borrower
is and will continue to be qualified and licensed in all jurisdictions in which the nature of the business transacted by it, or
the ownership or leasing of its property, make such qualification of licensing necessary, and Borrower has and will continue to
have all requisite power and authority to carry on its business as it is now, or may hereafter be, conducted.

 

4.2
Authority. Borrower is, and will continue to be, duly empowered and authorized to enter into, and grant security interests
in its property, pursuant to and perform its obligations under this Agreement, and all other instruments and transactions contemplated
hereby or relating hereto. The execution, delivery and performance by Borrower of this Agreement, and all other instruments and
transactions contemplated hereby or relating hereto, have been duly and validly authorized, are enforceable against the Borrower
in accordance with their terms, and do not and will not violate any law or any provision of, nor be grounds for acceleration under,
any agreement, indenture, note or instrument which is binding upon Borrower, or any of its property, including without limitation,
Borrower’s Operating Agreement, Partnership Agreement, Articles of Incorporation, By-Laws and any Shareholder Agreements
(as applicable).

 

4.3
Name, Trade Names and Styles. Borrower has set forth above its absolutely true and correct name. Set forth in Schedule
A, No. 17, is each prior true name of Borrower and each fictitious name, trade name and trade style by which Borrower has been,
or is now known, or has previously transacted, or now transacts business.

 

4.3.1
Borrower shall provide Lender with thirty (30) days’ advance written notice before doing business under any other name,
fictitious name, trade name or trade style. Borrower has complied, and will hereafter comply, with all laws relating to the conduct
of business under, the ownership of property in, and the renewal or continuation of the right to use, a corporate, fictitious
or trade name or trade style.

 

    	Page 4 of 16

     

    

 

4.4
Place of Business; Location of Collateral. Borrower’s books and records, including, but not limited to, the books
and records relating to Borrower’s Accounts are and will be kept and maintained at Borrower’s Address unless and until
Lender shall otherwise consent in writing. In addition to Borrower’s Address, Borrower has places of Business and Collateral
located only at the following locations: See Schedule A, No. 16.

 

	 	4.4.1	Borrower
    will provide Lender with at least thirty (30) days advance written notice in the event Borrower moves the Collateral, or obtains,
    opens or maintains any new or additional place(s) for the conduct of Borrower’s business or the location of any Collateral,
    or closes any existing place of business.

 

4.5
Title to Collateral; Liens. Borrower is now, and will at all times hereafter be, the true, lawful and sole owner of all
the Collateral. Except for the security interest granted to Lender and the security interests granted to Lind Macro Fund LP and
Lind Global Asset Management LLC (collectively, “Lind”), the Collateral now is and will hereafter remain, free and
clear of any and all liens, charges, security interests, encumbrances and adverse claims. Except as expressly provided to the
contrary in this Section, Lender now has, and will hereafter continue to have, a fully perfected and enforceable first priority
security interest in all of the Collateral, and Borrower will at all times defend Lender and the Collateral against all claims
and demands of others. Lender acknowledges that it and BOXL have entered into the Third Amended and Restated Intercreditor Agreement
dated September 21, 2020 with Lind, as second lien creditor.

 

4.6
Accounts. Each and every Account assigned to Lender shall, on the date the assignment is made and thereafter, comply with
all of the following representations, warranties and covenants: (a) each Account represents an undisputed bona fide existing unconditional
obligation of the Account Debtor created by the sale, delivery, and acceptance of goods or the rendition of services in the ordinary
course of Borrower’s business (except that Borrower creates and issues freight transportation invoices to Account Debtors
upon placement of goods for delivery on motor vehicles or trailers and will complete delivery within five (5) days thereafter);
(b) each Account is owned by Borrower free and clear of any and all deductions, Disputes, liens, security interests and encumbrances;
(c) the Account Debtor has received and accepted the goods sold and services rendered which created the Account and the invoice
therefore and will pay the same without any Dispute; (d) no Account Debtor on any Account is a shareholder, director, partner
or agent of Borrower, or is a person or entity controlling, controlled by or under common control with Borrower; and (e) no Account
is owed by an Account Debtor to whom Borrower is or may become liable in connection with goods sold or services rendered by the
Account Debtor to Borrower or any other transaction or dealing between the Account Debtor and Borrower. Immediately upon discovery
by Borrower that any of the foregoing representations, warranties, or covenants are or have become untrue with respect to any
Account, Borrower shall immediately give written notice thereof to Lender. In the event that Borrower breaches the warranty contained
in Section 4.6(a), it will be impracticable or extremely difficult to determine the resulting damages suffered by Lender. It is,
therefore, agreed that Borrower shall immediately pay to Lender as liquidated damages the Invalid Invoice Fee for each financed
Account which violates the warranty contained in Section 4.6(a). Borrower will promptly notify Lender of any Dispute and settle
all Disputes, at Borrower’s own cost and expense (including attorneys’ fees), and Borrower will immediately pay Lender
the amount of all Advances on Accounts affected by any Dispute. Any Dispute not settled by Borrower within thirty (30) days after
the maturity of the invoice affected thereby may, if Lender so elects, be settled, compromised, adjusted or litigated by Lender
directly with the Account Debtor or other complainant for Borrower’s account and risk and upon such terms and conditions
as Lender, in Lender’s sole discretion, deems advisable. Lender is under no duty to investigate the validity or merits of
any Dispute. Lender may also, in Lender’s discretion, take possession of and sell or cause the sale of any returned or recovered
merchandise, at such prices, upon such terms and to such purchasers as Lender deems proper, and, in any event, to charge the deficiency,
costs and expenses thereof, including attorneys’ fees, to Borrower. In addition to all other rights Lender has hereunder,
whenever there is any Dispute, or if any Account is unpaid at its maturity, Lender may charge the amount of the Account so affected
or unpaid (as well as all other Accounts due and owing from that Account Debtor) to Borrower or the Reserve; but such chargeback
shall not be deemed nor shall it constitute a reassignment to Borrower of the Account affected thereby, and the rights to the
Goods assigned to Lender hereunder giving rise thereto shall remain with Lender until Lender is fully reimbursed, regardless of
the date or dates on which Lender charges back the amount of any Account with respect to which there is any Dispute, or the amount
owing from an Account Debtor which has raised any Dispute.

 

4.7
Documents Genuine, Legal Compliance, Disposition. All statements made and all unpaid balances appearing in all invoices,
instruments and other documents evidencing the Accounts are and shall be true and correct and all such invoices, instruments and
other documents and all of Borrower’s books and records are and shall be genuine and in all respects what they purport to
be and all signatories and endorsers have full capacity to contract. All sales and other transactions underlying or giving rise
to each Account shall fully comply with all applicable laws and governmental rules and regulations. All signatures and endorsements
on all documents, instruments, and agreements relating to all Accounts are and shall be genuine and all such documents, instruments
and agreements are and shall be legally enforceable in accordance with their terms. Borrower has not, and shall not hereafter
sell, assign, pledge, encumber, forgive (completely or partially), settle for less than payment in full, or transfer or dispose
of any Account, or agree to do any of the foregoing.

 

4.8
Maintenance of Collateral. Borrower has maintained and will hereafter maintain the Collateral and all of Borrower’s
assets useful or necessary in the conduct of Borrower’s business in good working order and condition, at Borrower’s
sole cost and expense. Borrower will not use the Collateral or any of Borrower’s other properties, or any part thereof,
in any unlawful business or for any unlawful purpose and will not secrete or abandon the Collateral, such properties, or any part
thereof. Borrower will not store any of the Collateral with any warehouseman or any other third party without Lender’s prior
written consent. Borrower will immediately advise Lender in writing of any event other than events in the ordinary course of business
such as sale of Inventory or use of Equipment causing loss or depreciation and of any material adverse change in the condition
of the Collateral or of any of Borrower’s other properties.

 

4.9
Books and Records. Borrower has maintained and will continue to maintain at Borrower’s Address complete and accurate
books and records comprising a standard and modern accounting system in accordance with generally accepted accounting principles
that accurately and correctly record and reflect Borrower’s income, expenses, liabilities, operations, accounts, and ownership
and location of the Collateral and any other asset now or hereafter belonging to Borrower. All reserves (including, without limitation,
reserves for bad debts, depreciation and taxes) provided for upon Borrower’s books and records are now, and will hereafter
be, maintained in sufficient amounts in accordance with generally accepted accounting principles consistently applied. All such
books and records and all documents relating to any of the Collateral are and will continue to be genuine and in all respects
what they purport to be and will contain such information as may be requested by Lender.

 

    	Page 5 of 16

     

    

 

4.10
Financial Condition and Statements. All financial statements (including, but not limited to, balance sheets, profit and
loss figures, and accountants’ comments) now or hereafter delivered to Lender have been, and will be, prepared in conformity
with generally accepted accounting principles and now and hereafter will completely and accurately reflect the financial condition,
contingent liabilities and results of Borrower and Borrower’s operations at the times and for the periods therein stated.
Borrower is now, and, at all times hereafter, will continue to be solvent. The covenant set forth in the preceding sentence shall
be deemed breached if at any time Lender estimates in good faith that the value of all Borrower’s assets, if sold in bulk
for liquidation purposes, would not be sufficient to pay the total of Borrower’s liabilities (whether or not such liabilities
are then due) or if Lender has determined in good faith that Borrower has failed to pay promptly when due all loans and all debts
to trade and other creditors (unless Lender is satisfied that the reason for such nonpayment is a bona fide Dispute between Borrower
and any of its creditors concerning the amount due). Borrower shall provide Lender with copies of all financial statements and
any other documents reflecting Borrower’s financial situation within five (5) days after Lender’s request.

 

4.11
Tax Returns. Borrower has timely filed, and will hereafter timely file, all tax returns and reports required by foreign,
federal, state or local law. Borrower has timely paid, and will hereafter timely pay, all foreign, federal, state and local taxes,
assessments, deposits and contributions now or hereafter owed by Borrower (including, but not limited to, income, franchise, personal
property, real property, FICA, excise, withholding, sales and use taxes). Borrower may defer payment of any contested taxes provided
that Borrower: (i) in good faith contests Borrower’s obligation to pay such taxes by appropriate proceedings promptly and
diligently instituted and conducted; (ii) notifies Lender in writing of the commencement and of any material development in such
proceedings; and (iii) posts bonds or takes any other steps required to keep such contested taxes from becoming a lien against
or charge upon any of the Collateral or other properties of Borrower. Borrower is unaware of any claims or adjustments proposed
for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by Borrower. When
requested, Borrower will furnish Lender with proof satisfactory to Lender of Borrower’s making the payment or deposit of
all such taxes, such proof to be delivered within five (5) days after the due date established by law for each such payment or
deposit. In the event Borrower fails or is unable to pay or deposit such taxes, Lender may, but is not obligated to, pay the same
and treat all such advances as an additional advance to Borrower. Such advances shall incur fees as outlined in this Agreement.

 

4.12
Compliance with Law, and Environmental Laws. Borrower has complied, and will hereafter comply, with all provisions of all
foreign, federal, state and local law relating to Borrower, including, but not limited to, those relating to Borrower’s
ownership of real or personal property, conduct and licensing of Borrower’s business and employment of Borrower’s
personnel. Borrower has been and is currently in compliance with all applicable Environmental Laws, including obtaining and maintaining
in effect all permits, licenses or other authorizations required by applicable Environmental Laws. There are no claims, liabilities,
investigations, litigation, administrative proceedings, whether pending or threatened, or judgments or orders relating to any
hazardous materials asserted or threatened against Borrower or relating to any real property currently or formerly owned, leased
or operated by Borrower.

 

4.13
Litigation. There is no claim, suit, litigation, proceeding or investigation pending or threatened by or against or affecting
Borrower in any court or before any regulatory commission, board or other governmental agency (or any basis therefore known to
Borrower) which might result, either separately or in the aggregate, in any adverse change in the business, prospects or condition
of Borrower, or in any impairment in the ability or right of Borrower to carry on its business in substantially the same manner
as it is now being conducted. Borrower will immediately inform Lender in writing of any claim, proceeding, litigation or investigation
hereafter threatened or instituted by or against Borrower.

 

4.14
Complete Disclosure. There is no fact which Borrower has not disclosed to Lender in writing which could materially adversely
affect the properties, business or financial condition of Borrower or any of the Collateral or which is necessary to disclose
in order to keep the foregoing representations and warranties from being misleading.

 

4.15
Continuing Effect. All representations, warranties and covenants of Borrower contained in this Agreement and any other
agreement with Lender shall be true and correct at the time of the effective date of each such agreement and shall be deemed continuing
and shall remain true, correct and in full force and effect until payment and satisfaction in full of all of the Obligations,
and Borrower acknowledges that Lender is and will be expressly relying on all such representations, warranties and covenants in
making advances to Borrower.

 

4.16
No Violation of Federal or State Law. No Account or any contract related thereto in any manner contravenes any federal,
state or local law, rule or regulation applicable thereto.

 

4.17
Notification of Violations. Borrower shall within five (5) business days notify Lender in writing of any violation
of any law, statute, regulation or ordinance of any governmental entity, or any agency thereof, applicable to Borrower which may
materially affect the Collateral or Borrower’s operations.

 

5.
Additional Continuing Duties of Borrower.

 

5.1
Duties Regarding Accounts.

 

(a)
Borrower shall deliver to Lender schedules and assignments of all Accounts on Lender’s standard form; provided, however,
that Borrower’s failure to execute and deliver the same shall not affect or limit Lender’s security interest and other
rights in and to all of Borrower’s Accounts, nor shall Lender’s failure to finance a specific Account affect or limit
Lender’s security interest and other rights therein. Together with each such schedule and assignment, or later if requested
by Lender, Borrower shall furnish Lender with copies (or, at Lender’s request, originals) of all contracts, orders, invoices,
and other similar documents, and all original shipping instructions, delivery receipts, bills of lading, other evidence of delivery,
time records, and any other documents requested by Lender for any goods or services which gave rise to such Accounts, and Borrower
warrants the genuineness of all of the foregoing. Borrower shall also furnish to Lender an aged accounts receivable trial balance
in such form and as often as Lender requests, and Borrower agrees that Lender may from time to time verify directly with the respective
Account Debtors the validity, amount and any other matters relating to the Accounts by means of mail, email, telephone or otherwise,
either in the name of Borrower or Lender or such other name as Lender may choose. In addition, Borrower shall, at Lender’s
request, immediately deliver to Lender the originals of all instruments, chattel paper, security agreements, guaranties and other
documents and property evidencing or securing any Accounts, along with all necessary endorsements (all of which shall be with
recourse).

 

    	Page 6 of 16

     

    

 

(b)
Lender shall have the sole and exclusive right to collect the Accounts. All monies, checks, notes, drafts, money orders, acceptances
and other things of value and items of payment, together with any and all related vouchers, identifications, communications and
other data, documents and instruments, which for any reason may be received by Borrower (or by any receiver, trustee, custodian
or successor in interest of Borrower, or any person acting on behalf of Borrower) in payment of, or in reference to, the Accounts
shall belong to Lender, and, not later than one (1) day after receipt thereof by Borrower, Borrower shall deliver the same to
Lender, at Lender’s office in the original form in which the same are received, together with any necessary endorsements,
including, without limitation, the endorsement of Borrower, all of which endorsements shall be with full recourse. Borrower shall
have no right, and agrees not to commingle any of the proceeds of any of the collections of the Accounts with Borrower’s
own funds and Borrower agrees not to use, divert or withhold any such proceeds. Borrower hereby divests itself of all dominion
over the Accounts and the proceeds thereof and collections received thereon. The parties hereto agree that if any payment on account
of an assigned Account or any Account which is required to be assigned to Lender hereunder, even if it was not so assigned, which
has been received by Borrower is not delivered in kind to Lender on the next business day following the date of receipt by Borrower;
it will be impracticable or extremely difficult to determine the resulting damages suffered by Lender. It is therefore agreed
that in the event of such a breach by Borrower, Borrower shall immediately pay Lender the Misdirected Payment Fee as liquidated
damages for Borrower’s breach of the foregoing warranty. Borrower shall make entries on its books and records in form satisfactory
to Lender disclosing the absolute and unconditional assignment of all Accounts to Lender. Lender may charge to the Obligations
all costs and expenses incurred by Lender in collecting Accounts, including, without limitation, travel expenses, postage, telephone
and telegraph charges, salaries of Lender personnel, and attorneys’ fees.

 

(c)
Any goods which are returned by an Account Debtor or otherwise recovered by or for the benefit of Borrower shall be physically
segregated, posted with written notice that they are subject to Lender’s security interest, and held in trust for Lender
for such disposition as Lender shall direct. Borrower shall promptly notify Lender of all such returns and recoveries. No return
of merchandise shall be accepted by Borrower and no sale of returned goods shall be made by Borrower without Lender’s prior
written consent. Lender shall have the right acting alone to accept the return of any goods directly from an Account Debtor, without
notice to or consent by Borrower, and neither the delivery by Borrower of returned or recovered goods to Lender, nor the acceptance
by Lender of returns directly from an Account Debtor shall in any way affect Borrower’s liability to Lender on account of
the Obligations.

 

(d)
Borrower shall promptly notify Lender of all Disputes and claims with respect to the Accounts. Borrower shall not, without Lender’s
prior written consent, compromise or adjust any Account, or grant any discount, credit, allowance, or extension of time for payment
to any Account Debtor. Lender shall have the right, in its sole and absolute discretion, to settle, accept reduced amounts and
adjust Disputes and claims directly with, and give releases on behalf of Borrower to Account Debtors for cash, credit or otherwise,
upon terms which Lender, in its sole and absolute discretion, considers advisable, and in such case, Lender will credit Borrower’s
account with only the net amounts of cash received by Lender in payment of the Accounts, less all costs and expenses (including,
without limitation, attorneys’ fees) incurred by Lender in connection with the settlement or adjustment of such Disputes
and the collection of such Accounts.

 

5.2
Insurance. Borrower shall, at all times, and for such periods of time as Lender may require, at Borrower’s expense,
insure all of the insurable Collateral, and all of Borrower’s books and records, by financially sound and reputable insurers
acceptable to Lender, in the form of extended coverage policies against loss or damage by theft, embezzlement, fire, explosion,
flood, sprinkler, or any other insurable event or risk that Lender may require, to the fullest extent of the insurable value thereof.
All such insurance policies shall name Lender as the exclusive loss payee, shall provide that proceeds payable thereunder shall
be payable directly to Lender unless notarized written authority to the contrary is obtained from Lender, and shall also provide
that no act or default of Borrower or any other person shall affect the right of Lender to recover thereunder. Upon receipt of
the proceeds of any such insurance, Lender shall apply such proceeds in reduction of the Obligations, whether or not then due,
in such order and manner as Lender shall determine, in its sole discretion. Borrower shall provide Lender with the original or
a certificate of each such policy of insurance which shall contain a provision requiring the insurer to give not less than twenty
(20) days advance written notice to Lender in the event of cancellation or termination of the policy for any reason whatsoever.
If Borrower fails to provide or pay for any such insurance, Lender is authorized (but not obligated) to procure the same at Borrower’s
expense. Borrower agrees to deliver to Lender, promptly as rendered, true and correct copies of all reports made to all insurance
companies.

 

5.3
Reports, Certificates. At its sole cost and expense, Borrower shall report, in form satisfactory to Lender, such information
as Lender may request regarding the Collateral; such reports shall be for such periods, shall reflect Borrower’s records
at such time and shall be rendered with such frequency as Lender may designate. At its sole cost and expense, Borrower shall promptly
provide Lender with all such other information concerning its affairs as Lender may request from time to time hereafter, and shall
immediately notify Lender of any material adverse change in Borrower’s financial condition and or any condition or event
which constitutes a breach or an Event of Default under this Agreement. All reports furnished to Lender shall be complete, accurate
and correct in all respects at the time furnished.

 

5.4
Access to Collateral, Books and Records. At any and all times, Lender, and any person designated by Lender, shall
have free access to, and the right without hindrance or delay, to inspect, audit, examine and test the Collateral and any other
property of Borrower, wherever located, and to inspect, audit, check, copy and make extracts from Borrower’s and Borrower’s
accountant’s books, records and accounts (hereinafter collectively the “Records”) and all computer data containing
the same, no matter where the Records are stored. Borrower hereby irrevocably authorizes and directs any person including, but
not limited to, any of Borrower’s directors, members, officers, employees, agents, accountants and attorneys having possession
or control of any of the Records to physically deliver them to Lender or any person designated by Lender upon Lender’s request
or, at the option of Lender, make them available to Lender wherever the Records may be located. Borrower waives the benefit of
any evidentiary privilege precluding or limiting the disclosure, divulgence or delivery of any of the Records. Borrower shall
pay Lender the Audit Fee immediately upon its accrual.

 

    	Page 7 of 16

     

    

 

5.5
Prohibited Transactions. Borrower shall not hereafter, without Lender’s prior written consent: merge, consolidate,
dissolve, acquire any other corporation; enter into any transaction not in the usual course of business; make any investment in
any securities other than securities of the United States of America; guarantee or otherwise become in any way liable with respect
to the obligations of another party or entity; pay or declare any dividends upon Borrower’s stock; redeem, retire, purchase
or otherwise acquire, directly or indirectly, any of Borrower’s stock; make any change in Borrower’s name, identity,
corporate or capital structure; alter any of Borrower’s business objectives, purposes, or operations or financial structure
in such a manner as to adversely affect the ability of Borrower to pay or perform any of the Obligations; lend or distribute any
of Borrower’s property or assets; incur any debts, outside of the ordinary course of Borrower’s business, except extensions
of existing debts and interest thereon; sell, lease, transfer, assign or otherwise dispose of any of the Collateral; or make any
capital expenditures or leasehold improvements at a cost in the aggregate in any twelve-month period of more than $75,000.

 

5.6
Notification of Changes. Borrower will promptly notify Lender in writing of any change of its officers, members, directors,
partners, or key employees, a death of any partner or joint venturer (if Borrower is a partnership or joint venture), any purchase
out of the regular course of Borrower’s business and any adverse or material change in the business or financial affairs
of Borrower.

 

5.7
Litigation Cooperation. Should any suit or proceeding be instituted by or against Lender with respect to any Collateral
or for the collection of enforcement of any Account, or in any manner relating to Borrower, Borrower shall, without expense to
Lender, and wherever and whenever designated by Lender, make available Borrower and its officers, employees and agents and Borrower’s
books, records and accounts to the extent that Lender may deem necessary in order to prosecute or defend any such suit or proceeding.

 

5.8
Execute Additional Documentation. Borrower agrees, at its sole cost and expense, on demand by Lender, to do all things
and to execute all such security agreements, control agreements, deeds of trust, mortgages, assignments, certificates of title,
applications for vehicle titles, affidavits, reports, notices, schedules of Accounts and all other documents, in form satisfactory
to Lender, as Lender, in its sole and absolute discretion, may deem necessary or useful in order to perfect and maintain Lender’s
perfected first-priority security interest in the Collateral, and in order to fully consummate all of the transactions contemplated
under this Agreement.

 

6.
Application of Payments. Checks, instruments and all other non-cash payments delivered to Lender in payment or on
account of the Accounts or the Obligations constitute conditional payment only until such items are actually paid in cash to Lender,
for the purpose of computing fees earned by Lender, credit therefore and for bank wire transfers, shall be given after receipt
by Lender, as provided for in Schedule A, No. 20. All payments made by or on behalf of, and all credits due to Borrower, may be
applied and reapplied in whole or in part to any of the Obligations to such extent and in such manner as Lender shall determine
in its sole discretion. Lender shall have the continuing exclusive right to apply and reapply any and all such payments in such
manner as Lender shall determine in its sole discretion, notwithstanding any entry by Lender upon any of its books and records.
Any payments received on any Account not eligible to be financed by Lender shall be placed in the Reserve. Any payments received
on any Account eligible to be financed by Lender, but not received by Lender, will be assessed the Administrative Fee.

 

 7. Events of Default and Remedies.

 

7.1 Events
of Default. The occurrence of any one of more of the following shall constitute an Event of Default hereunder: (a)
Borrower fails to pay or perform any Obligation as and when due; (b) there shall be commenced by or against Borrower any
voluntary or involuntary case under the United States Bankruptcy Code, or any assignment for the benefit of creditors, or
appointment of a receiver or custodian for any of its assets, or Borrower makes or sends notice of a bulk transfer; (c)
Borrower or any guarantor of the Obligations shall become insolvent in that its debts are greater than the fair value of its
assets, or Borrower is generally not paying its debts as they become due or is left with unreasonably small capital; (d) any
lien, garnishment, attachment, execution or the like is issued against or attaches to the Borrower, Accounts subject to this
Agreement, or the Collateral; (e) Borrower shall breach any covenant, agreement, warranty, or representation set forth
herein; (f) Borrower delivers any document, financial statement, schedule or report to Lender which is false or incorrect in
any material respect; (g) Lender, at any time, acting in good faith and in a commercially reasonable manner, deems itself
insecure; or (h) any present or future guarantor of the Obligations revokes, terminates or fails to perform any of the terms
of any guaranty, endorsement or other agreement of such party in favor of Lender or any affiliate of Lender. The borrower
will receive a formal notification of the default. In respect of 7.1.a (except as stated in Clause 5.1.b where there is no
cure period after the expiry of the noted 1 day), c, d, e, g and h there shall be a cure period of 10 days after the receipt
of default notification. In respect of clause band f there shall be no cure period.

 

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7.2 Remedies. Upon
the occurrence of any Event of Default, and at any time thereafter, Lender, at its option, and without notice or demand of
any kind (all of which are hereby expressly waived by Borrower) may do any one or more of the following: (a) cease advancing
money or extending credit to or for the benefit of Borrower under this Agreement, and any other document or agreement; (b)
accelerate and declare all or any part of the Obligations to be immediately due, payable, and performable, notwithstanding
any deferred or installment payments allowed by any instrument evidencing or relating to any Obligation; (c) take possession
of any or all of the Collateral wherever it may be found, and for that purpose Borrower hereby authorizes Lender without
judicial process to enter onto any of the Borrower’s premises without hindrance to search for, take possession of,
keep, store, or remove any of the Collateral and remain on such premises or cause a custodian to remain thereon in exclusive
control thereof without charge for so long as Lender deems necessary in order to complete the enforcement of its rights under
this Agreement or any other agreement; provided, however, that should Lender seek to take possession of any or all of the
Collateral by Court process or through a receiver, Borrower hereby irrevocable waives: (i) any bond and any surety or
security relating thereto required by any statute, court rule or otherwise as an incident to such possession; (ii) any demand
for possession prior to the commencement of any suit or action to recover possession thereof; and (iii) any requirement that
Lender retain possession of and not dispose of any such Collateral until after trial or final judgment; (d) require Borrower
to assemble any or all of the Collateral and make it available to Lender at a place or places to be designated by Lender
which is reasonably convenient to Lender and Borrower, and to remove the Collateral to such locations as Lender may deem
advisable; (e) place a receiver in exclusive control of Borrower’s business and/or any or all of the Collateral, in
order to assist Lender in enforcing its rights and remedies; (f) sell, ship, reclaim, lease or otherwise dispose of all or
any portion of the Collateral in its condition at the time Lender obtains possession or after further manufacturing,
processing or repair; at any one or more public and/or private sale(s) (including execution sales); in lots or in bulk; for
cash, exchange for other property or on credit; and to adjourn any such sale from time to time without notice other than oral
announcement at the time scheduled for sale. Lender shall have the right to conduct such disposition on Borrower’s
premises without charge for such time or times as Lender deems fit, or on Lender’s premises, or elsewhere and the
Collateral need not be located at the place of disposition. Lender may directly or through any affiliated company purchase or
lease any Collateral at any such public disposition and, if permissible under applicable law, at any private disposition. Any
sale or other disposition of Collateral shall not relieve Borrower of any liability Borrower may have if any Collateral is
defective as to title or physical condition at the time of sale; (g) demand payment of, and collect any Accounts,
Instruments, Chattel Paper, Supporting Obligations and General Intangibles comprising part or all of the Collateral; or (h)
demand and receive possession of any of Borrower’s federal and state income tax returns and the books, records and
accounts utilized in the preparation thereof or referring thereto. Any and all attorneys’ fees, expenses, costs,
liabilities and obligations incurred by Lender with respect to the foregoing shall be added to and become part of the
Obligations, and shall be due on demand. In the event that Borrower commits any Event of Default, and Lender elects to
terminate this Agreement or this Agreement is otherwise terminated early for any reason, it will be impracticable or
extremely difficult to calculate the resulting damages upon such termination. Therefore, the parties agree that Borrower
shall pay Lender an Early Termination Fee, calculated as five percent (5%) of the Maximum Facility Limit less other fees paid
by Borrower to Lender resulting from such Event of Default such as Default Rate and Minimum Monthly Sales Shortfall Fee, as
liquidated damages for any early termination of this Agreement (the “Early Termination Fee”).

 

7.3
Application of Proceeds from Disposition or Collection of Collateral. The proceeds received by Lender from the disposition
of or collection of any of the Collateral shall be applied to such extent and in such manner as Lender shall determine in its
sole discretion. If any deficiency shall arise, Borrower shall remain liable to Lender therefore. In the event that, as a result
of the disposition of any of the Collateral, Lender directly or indirectly enters into a credit transaction with any third party,
Lender shall have the option, exercisable at any time, in its sole discretion, of either reducing the Obligations by the principal
amount of such credit transaction or deferring the reduction thereof until the actual receipt by Lender of cash therefore from
such third party.

 

7.4
Online Access. All of Borrower’s rights and access to any online internet services that Lender makes available to
Borrower shall be provisional pending Borrower’s curing of all such Events of Default and Lender may elect to terminate
Borrower’s online access as provided for herein. During such period of time, Lender may limit or terminate Borrower’s
access to online services. Borrower acknowledges that the information Lender makes available to Borrower through online internet
access, both before and after an Event of Default, constitutes and satisfies any duty to respond to a request for accounting or
request regarding a statement of account that is referenced in the UCC.

 

7.5
Standards of Commercial Reasonableness. After an Event of Default, the parties acknowledge that it shall be presumed commercially
reasonable and Lender shall have no duty to undertake to collect any Account, including those in which Lender receives information
from an Account Debtor that a Dispute exists. Furthermore, in the event Lender undertakes to collect or enforce an obligation
of an Account Debtor or any other person obligated on the Collateral and ascertains that the possibility of collection is outweighed
by the likely costs and expenses that will be incurred, Lender may at any such time cease any further collection efforts and such
action shall be considered commercially reasonable. Before Borrower may, under any circumstances, seek to hold Lender responsible
for taking any uncommercially reasonable action, Borrower shall first notify Lender in writing, of all of the reasons why Borrower
believes Lender has acted in any uncommercially reasonable manner and advise Lender of the action that Borrower believes Lender
should take.

 

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7.6 Formation
of New Entity. In the event Borrower or any one or more of its principals, officers or directors during the term
of this Agreement or while Borrower remains liable to Lender for any Obligations under the Agreement or arising out of or
related to the Agreement, (i) forms a new entity; or (ii) has failed to disclose to Lender at the time of the Effective Date
of this Agreement an existing entity, that does business similar to that of Borrower, whether in the form of a corporation,
partnership, limited liability company or otherwise, such entity shall be deemed to have expressly assumed the obligations
due Lender by Borrower under the Agreement. Upon the formation of any such entity, Lender, in addition to all of its
available remedies, shall be deemed to have been granted an irrevocable power of attorney with authority to file a new
financing statement with the appropriate secretary of state or UCC filing office naming the newly formed successor business
or undisclosed existing business, as a debtor or new debtor. Lender shall have the right to notify the successor
entity’s or undisclosed existing entity’s Account Debtors of Lender’s security interest, its right to
collect all Accounts, and to notify any new secured party who has sought to obtain a competing security interest of
Lender’s right in such entity’s assets. Borrower shall indemnify Lender, pursuant to Section 10.5 herein, from
any claims against Lender which arises out of Lender exercising any of its rights hereunder.

 

7.7
Remedies Cumulative. In addition to the rights and remedies set forth in this Agreement, Lender shall have all the other
rights and remedies accorded a secured party under the UCC and under any and all other applicable laws and in any other instrument
or agreement now or hereafter entered into between Lender and Borrower and all of such rights and remedies are cumulative and
none is exclusive. Exercise or partial exercise by Lender of one or more of its rights or remedies shall not be deemed an election,
nor bar Lender from subsequent exercise or partial exercise of any other rights or remedies. The failure or delay of Lender to
exercise any rights or remedies shall not operate as a waiver thereof, but all rights and remedies shall continue in full force
and effect until all of the Obligations have been fully paid and performed.

 

8.
Power of Attorney. Borrower grants to Lender an irrevocable power of attorney coupled with an interest authorizing
and permitting Lender (acting through any of its employees, attorneys or agents) at any time, at its option but without obligation,
with or without notice to Borrower, and at Borrower’s sole expense, to do any or all of the following, in Borrower’s
name or otherwise: (a) execute on behalf of Borrower any document that Lender may, in its sole discretion, deem advisable in order
to perfect, maintain or improve Lender’s security interests in the Collateral or other real or personal property intended
to constitute Collateral, or in order to exercise a right of Borrower or Lender, or in order to fully consummate all the transactions
contemplated under this Agreement, and all other present and future agreements; (b) at any time after the occurrence of an Event
of Default, execute on behalf of Borrower any document exercising, transferring or assigning any option to purchase, sell or otherwise
dispose of or to lease (as lessor or lessee) any real or personal property; (c) execute on behalf of Borrower, any invoices relating
to any Account, any draft against any Account Debtor and any notice to any Account Debtor, any proof of claim in bankruptcy, any
notice of lien, claim of mechanic’s, materialman’s or other lien, or assignment of satisfaction of mechanic’s,
materialman’s or other lien; (d) take control in any manner of any cash or non-cash items of payment or proceeds of Collateral;
endorse the name of Borrower upon any instruments, notes, acceptances, checks, drafts, money orders, bills of lading, freight
bills, chattel paper or other documents, evidence of payment or Collateral that may come into Lender’s possession; (e) upon
the occurrence of any Event of Default, to receive and open all mail addressed to Borrower; and, in the exercise of such right,
Lender shall have the right, in the name of Borrower, to notify the Post Office authorities to change the address for the delivery
of mail addressed to Borrower to such other address as Lender may designate, including, but not limited to, Lender’s own
address; Lender shall turn over to Borrower all of such mail not relating to the Collateral; such right to redirect mail granted
to Lender is irrevocable and Borrower shall not have the right to notify the Post Office to change the address for delivery after
Lender has exercised such right; (f) upon the occurrence of any Event of Default, to direct any financial institution which is
a participant with Lender in extensions of financing to or for the benefit of Borrower, or which is the institution with which
any deposit account is maintained, to pay to Lender all monies on deposit by Borrower with said financial institution which are
payable by said financial institution to Borrower, regardless of any loss of interest, charge or penalty as a result of payment
before maturity; (g) endorse all checks and other forms of remittances received by Lender “Pay to the Order of (Lender)”
or in such other manner as Lender may designate; (h) pay, contest or settle any lien, charge, encumbrance, security interest and
adverse claim in or to any of the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge
the same; (i) grant extensions of time to pay, compromise claims and settle Accounts and the like for less than face value and
execute all releases and other documents in connection therewith; (j) pay any sums required on account of Borrower’s taxes
or to secure the release of any liens therefore, or both; (k) settle and adjust, and give releases of, any insurance claim that
relates to any of the Collateral and obtain payment therefore, and make all determinations and decisions with respect to any such
policy of insurance and endorse Borrower’s name on any check, draft, instrument or other item of payment or the proceeds
of such policies of insurance; (l) instruct any accountant or other third party having custody or control of any books or records
belonging to, or relating to, Borrower to give Lender the same rights of access and other rights with respect thereto as Lender
has under Section 5.4 of this Agreement; and (m) take any action or pay any sum required of Borrower pursuant to this Agreement,
and any other present or future agreements. Any and all sums paid and any and all costs expenses, liabilities, obligations and
attorneys’ fees incurred by Lender with respect to the foregoing shall be added to and become part of the Obligations. In
no event shall Lender’s rights, under the foregoing power of attorney or any of Lender’s other rights under this Agreement
be deemed to indicate that Lender is in control of the business, management or properties of Borrower.

 

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9.
Online User Standards.

 

9.1
Online Conducting of Business. Lender and Borrower intend to conduct business contemplated by this Agreement through the
internet and through Lender’s Online Reporting Service. Lender is the sole and exclusive owner of the Online Reporting Service.
Borrower hereby accepts a non-exclusive, non-transferable right to access the Online Reporting Service, upon the terms and subject
to the conditions contained herein.

 

9.2
Standards Regarding Conducting Business Online. Borrower and Lender agree as follows:

 

9.2.1
Reserved.

 

9.2.2
Borrower shall not: (i) copy the Online Reporting Service nor otherwise reproduce the same other than for normal system operation
backup; (ii) translate, adapt, vary, or modify the Online Reporting Service; or (iii) disassemble, decompile or reverse engineer
the Online Reporting Service.

 

9.2.3
Lender shall not be liable to Borrower for any loss or damage whatsoever or howsoever caused, whether caused by tort (including
negligence), breach of contract, or otherwise arising directly or indirectly in connection with the use of the Online Reporting
Service.

 

9.2.4
Lender expressly excludes liability for any indirect, special, incidental or consequential loss or damage whether caused by tort
(including negligence), breach of contract or otherwise, which may arise in respect of the Online Reporting Service, its use,
or in respect of equipment or property, or for loss of profit, business, revenue, goodwill or anticipated savings.

 

9.2.5
Borrower acknowledges that any and all of the copyright, trademarks, trade names, patents and other intellectual property rights
subsisting in or used in connection with the Online Reporting Service, including all documentation and manuals relating thereto,
are, and shall remain, the sole property of the Lender. Borrower shall not, during or at any time after the expiry or termination
of its use of the Online Reporting Service, in any way question or dispute the ownership by Lender thereof.

 

9.2.6
To the extent permitted by applicable law, Lender excludes all warranties with respect to the Online Reporting Service, either
express or implied, including, but not limited to, any implied warranties of satisfactory quality or fitness for any particular
purpose.

 

9.2.7
Borrower is solely responsible for virus scanning the Online Reporting Service, and Lender makes no representations or warranties
regarding any virus associated with the Online Reporting Services.

 

9.2.8
All information, data, drawings, specifications, documentation, software listings, source or object code which Lender may have
imparted and may from time to time impart to the Borrower relating to the Online Reporting Service is proprietary and confidential.
Borrower hereby agrees that it shall use the same solely in accordance with the provisions of this Agreement and that it shall
not, at any time during or after expiry or termination of this Agreement, disclose the same, whether directly or indirectly, to
any third party.

 

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10.
General.

 

10.1
Financing of Accounts, Not a True Sale. Borrower and Lender acknowledge and agree that the assignment of Accounts contemplated
and covered under this Agreement are fully intended by the parties hereto as a financing on a secured basis and not a true sale
of accounts.

 

10.2
Notices. Any Written Notice to be given under this Agreement will be in writing addressed to the respective party as set
forth in the heading to this Agreement and will be personally served, telecopied or sent by overnight courier service or United
States mail and will be deemed to have been given: (a) if delivered in person, when delivered; (b) if delivered by telecopy or
e-mail, on the date of transmission if transmitted on a business day before 4:00 p.m. (Central Time) or, if not, on the next succeeding
business day; (c) if delivered by overnight courier, two (2) days after delivery to such courier properly addressed; or (d) if
by U.S. Mail, four (4) business days after depositing in the United States mail, with postage prepaid and properly addressed.
If there is more than one Borrower, notice to any shall constitute notice to all; if Borrower is a corporation, partnership or
limited liability company, the service upon any member of the Board of Directors, general partner, managing member, officer, employee
or agent shall constitute service upon Borrower.

 

10.3
Payment in Full Checks. Borrower authorizes Lender to accept, endorse and deposit on behalf of Borrower any checks tendered
by an Account Debtor “in full payment” of its obligation to Borrower. Borrower shall not assert against Lender any
claim arising therefrom, irrespective of whether such action by Lender affects an accord and satisfaction of Borrower’s
claims, under Section 3-311 of the UCC.

 

10.4
No Lien Termination without Release. In recognition of the Lender’s right to have its attorneys’ fees and other
expenses incurred in connection with this Agreement secured by Collateral, notwithstanding payment in full of all Obligations
by Borrower, Lender shall not be required to record any terminations or satisfactions of any of Lender’s liens on the Collateral
unless and until Borrower has executed and delivered to Lender a general release and indemnity for trailing contingent obligations
in a form suitable to Lender. Borrower understands that this provision constitutes a waiver of its rights under Section 9-513
of the UCC.

 

10.5
Indemnity. Borrower shall indemnify and hold Lender harmless from and against any and all claims, debts, losses, demands,
actions, causes of action, lawsuits, Avoidance Claims, damages, penalties, judgments, liabilities, costs and expenses (including,
without limitation, attorneys’ fees), of any kind or nature which Lender may sustain or incur in connection with, or arising
from, this Agreement, any other present or future agreement, or the breach by Borrower of any representation, warranty, covenant
or provision contained herein or therein, or any other transaction contemplated hereby or thereby or relating hereto or thereto,
or any other matter, cause or thing whatsoever, occurred, done, omitted or suffered to be done by Lender relating in any way to
Borrower. Notwithstanding any other provision of this Agreement to the contrary, the indemnity agreement set forth in this Section
shall survive termination of this Agreement. If Borrower fails to honor this Section of the Agreement after termination thereof,
Lender shall have the right to re-file its UCC-1 financing statement and shall have the right to pursue any and all rights and
remedies against Borrower as contemplated by this Agreement, the UCC or any law or in equity. Lender may, in its sole discretion,
hold or supplement a Reserve to account for any Avoidance Claim.

 

10.6
Attorneys’ Fees and Costs. Borrower shall forthwith pay to Lender the amount of all actual attorneys’ fees
and all other costs incurred by Lender under and pursuant to this Agreement, or any other present or future agreement, or in connection
with any transaction, or with respect to the Collateral or the defense or enforcement of Lender’s interests (whether or
not Lender files a lawsuit against Borrower), including any proceedings in Bankruptcy Court. In the event Lender files any lawsuit
predicated on a breach of this Agreement or is any way related to this Agreement, the Lender shall be entitled to recover its
costs and attorneys’ fees, including, but not limited to, attorneys’ fees and costs incurred. All attorneys’
fees and costs to which Lender may be entitled pursuant to this Section shall immediately become part of Borrower’s Obligations
and shall be due on demand.

 

10.7
Benefit of Agreement. The provisions of this Agreement shall be binding upon and inure to the benefit of the respective
successors, assigns, heirs, beneficiaries and representatives of the parties hereto; provided, however, that Borrower may not
assign or transfer any of its rights under this Agreement without the prior written consent of Lender, and any prohibited assignment
shall be void. No consent by Lender to any assignment shall relieve Borrower or any guarantor from its liability for the Obligations.
Without limiting the generality of the foregoing, all rights and benefits of Lender under this Agreement may be exercised by any
institution with which Lender maintains any rediscount, financing or other relationship and by any other person or entity designated
by Lender.

 

10.8
Joint and Several Liability. The liability of each Borrower shall be joint and several and the compromise of any claim
with, or the release of, any Borrower shall not constitute a compromise with, or a release of, any other Borrower.

 

10.9
General Waivers. The failure of Lender at any time or times hereafter to require Borrower strictly to comply with any of
the provisions, warranties, terms or conditions of this Agreement or any other present or future instrument or agreement between
Borrower and Lender shall not waive or diminish any right of Lender thereafter to demand and receive strict compliance therewith
and with any other provision warranty, term and condition; and any waiver of any default shall not waive or affect any other default,
whether prior or subsequent thereto and whether of the same or of a different type. None of the provisions, warranties, terms
or conditions of this Agreement or other instrument or agreement now or hereafter executed by Borrower and delivered to Lender
shall be deemed to have been waived by any act or knowledge of Lender or its agents or employees, but only by a specific written
waiver signed by an officer of Lender and delivered to Borrower. Borrower waives any and all notices or demands which Borrower
might be entitled to receive with respect to this Agreement, or any other agreement by virtue of any applicable law. Borrower
hereby waives demand, protest, notice of protest and notice of default or dishonor, notice of payment and nonpayment, release,
compromise, settlement, extension or renewal of any commercial paper, instrument, Account, general intangible, document or guaranty
at any time held by Lender on which Borrower is or may in any way be liable, and notice of any action taken by Lender unless expressly
required by this Agreement. Borrower hereby ratifies and confirms whatever Lender may do pursuant to this Agreement and agrees
that Lender shall not be liable for the safekeeping of the Collateral or any loss or damage thereto, or diminution in value thereof,
from any cause whatsoever, any act or omission of any carrier, warehouseman, bailee, forwarding agent or other person, or any
act of commission or any omission by Lender or its officers, employees, agents, or attorneys, or any of its or their errors of
judgment or mistakes of fact or of law.

 

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10.10
Section Headings, Construction. Section headings are used herein for convenience only. Borrower acknowledges that the same
may not describe completely the subject matter of the applicable Section, and the same shall not be used in any manner to construe,
limit, define or interpret any term or provision hereof. This Agreement has been fully reviewed and negotiated between the parties
and no uncertainty or ambiguity in any term or provision of this Agreement shall be construed strictly against Lender or Borrower
under any rule of construction or otherwise.

 

10.11
Destruction of Borrower’s Documents, Limitation of Actions. Any documents, schedules, invoices or other papers delivered
to Lender may be destroyed or otherwise disposed of by Lender six (6) months after the same are delivered to Lender, unless Borrower
makes written request therefore and pays all expenses attendant to their return, in which event Lender shall return same when
Lender’s actual or anticipated need therefore has terminated. Borrower agrees that any claim or cause of action by Borrower
against Lender, its directors, officers, employees, agents, accountants or attorneys, based upon, arising from, or relating to
this Agreement, or any other present or future agreement, or any other transaction contemplated hereby or thereby or relating
hereto or thereto, or any other matter, cause or thing whatsoever, occurred, done, omitted or suffered to be done by Lender, its
directors, officers, employees, agents, accountants, or attorneys, relating in any way to Borrower, shall be barred unless asserted
by Borrower by the commencement of an action or proceeding in a court of competent jurisdiction by the filing of a complaint within
six (6) months after the first act, occurrence or omission upon which such claim or cause of action, or any part thereof, is based,
and the service of a summons and complaint on an officer of Lender, or on any other person authorized to accept service on behalf
of Lender, within thirty (30) days thereafter. Borrower agrees that such six-month period provided herein shall not be waived,
tolled, or extended except by the written consent of Lender, in its sole and absolute discretion. This provision shall survive
any termination, however arising, of this Agreement and any other present or future agreement.

 

10.12
Severability. Should any provision, clause or condition of this Agreement be held by any court of competent jurisdiction
to be void, invalid, inoperative, or otherwise unenforceable, such defect shall not affect any other provision, clause or condition,
and the remainder of this Agreement shall be effective as though such defective provision, clause or condition had not been a
part hereof.

 

10.13
Integration. This Agreement and such other written agreements, documents and instruments as may be executed in connection
herewith shall be construed together and constitute the entire, only and complete agreement between Borrower and Lender, and all
representations, warranties, agreements, and undertakings heretofore or contemporaneously made, which are not set forth herein
or therein, are superseded hereby.

 

10.14
Amendment. The terms and provisions of this Agreement may not be waived, altered, modified or amended except in a writing
executed by Borrower and a duly authorized officer of Lender. This Agreement shall amend and restate as of the date hereof each
and every Account Sale and Purchase Agreement between a Borrower and Lender in existence and currently in effect as of the date
of this Agreement, as amended, modified or supplemented from time to time (each such agreement shall be referred to herein as
an “ASPA”). All Accounts that are outstanding and unpaid as of the date of this Agreement previously sold, assigned,
transferred or factored to Lender under each such ASPA, shall be deemed to be transferred to the applicable Borrower, subject
to the security interest granted under the ASPA and this Agreement, such that Lender shall maintain and be granted a first priority
lien on said Borrower’s Accounts under the ASPA and this Agreement.

 

10.15
Time of Essence. Time is of the essence in the performance by Borrower of each and every obligation under this Agreement.

 

10.16
Electronic Signatures. The parties intend to conduct business contemplated by this Agreement by electronic means. Each
document, which is the subject of this Agreement, that a party has transmitted electronically to the other shall be intended as
and constitute an original and deemed to contain a valid signature of the party for all purposes acknowledging, consenting to,
authorizing and approving the terms of this Agreement or any subject matter applicable thereto. In furtherance of the above, Borrower
hereby authorizes Lender to regard the Borrower’s printed name or electronic approval for any document, agreement, assignment
schedule or invoice as the equivalent of a manual signature by one of the Borrower’s authorized officers or agents. Borrower’s
failure to promptly deliver to Lender any schedule, report, statement or other information required by this Agreement or any document
related thereto shall not affect, diminish, modify or otherwise limit Lender’s security interests in the Collateral or rights
and remedies under this Agreement. Lender may rely upon, and assume the authenticity of, any such approval and material applicable
to such approval as the duly confirmed, authorized and approved signature of Borrower by the person approving same which constitute
an Authenticated Record for purposes of the UCC and shall satisfy the requirements of any applicable statute of frauds.

 

10.17
Credit Reports. Borrower authorizes Lender to obtain credit reports for Borrower and all guarantors at any time, in Lender’s
sole discretion.

 

10.18
Governing Law, Jurisdiction; Venue. This Agreement and all acts and transactions hereunder and thereunder and all rights
and obligations of Lender and Borrower shall be governed, construed and interpreted in accordance with the internal laws of the
State of Texas. Borrower: (i) agrees that all actions or proceedings relating directly or indirectly hereto shall, at the option
of Lender, be litigated in courts located within said state, and, that, at the option of Lender, the exclusive venue therefore
shall be Harris County, State of Texas; (ii) consents to the jurisdiction and venue of any such court and consents to service
of process in any such action or proceeding by personal delivery or any other method permitted by law; and (iii) waives any and
all rights Borrower may have to object to the jurisdiction of any such court, or to transfer or change the venue of any such action
or proceeding.

 

10.19
Waiver of Right to Jury Trial. EACH BORROWER AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL IN ANY CLAIM
OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, ANY OTHER PRESENT OR FUTURE INSTRUMENT OR AGREEMENT BETWEEN ANY
BORROWER AND LENDER, AND ANY CONDUCT, ACTS OR OMISSIONS OF ANY BORROWER OR LENDER OR ANY OF THEIR DIRECTORS, MEMBERS, PARTNERS,
OFFICERS, EMPLOYEES, AGENTS, ATTORNEYS OR ANY OTHER PERSONS AFFILIATED WITH ANY BORROWER OR LENDER. EACH BORROWER AND LENDER ACKNOWLEDGE
THAT THIS WAIVER IS A MATERIAL INDUCEMENT TO ENTER INTO A BUSINESS RELATIONSHIP, THAT EACH HAS ALREADY RELIED ON THE WAIVER IN
ENTERING INTO THIS AGREEMENT AND THAT EACH WILL CONTINUE TO RELY ON THE WAIVER IN THEIR RELATED FUTURE DEALINGS. EACH BORROWER
AND LENDER FURTHER WARRANT AND REPRESENT THAT EACH HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL AND THAT EACH KNOWINGLY AND
VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL.

 

[Signatures
appear on following page]

 

    	Page 13 of 16

     

    

 

IN
WITNESS WHEREOF, the parties hereto have executed this Agreement through their duly authorized officers.

 

	Dated:
    September 30, 2020 (the “Effective Date”)	 
	 	 	 
	Sallyport
    Commercial Finance, LLC	 
	 	 	 
	Signature:	 	 
	Print
    Name:	Nick
    Hart	 
	Title:
    	President	 
	 	 	 
	BOXLIGHT,
    INC.	 
	 	 	 
	Signature:	 	 
	Print
    Name:	 	 
	Title:
    	 	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 
	Telephone number: __________________	 
	 	 	 
	EOSEDU,
    LLC	 
	 	 	 
	Signature:	 	 
	Print
    Name:	 	 
	Title:
    	 	 
	 	 	 
	Address:	 	 
	 	 	 
	 	 
	 	 
	 	 
	 	 	 
	Telephone number: __________________	 
	 	 	 
	Document to be notarized	 

 

[Separate
notarized signatures pages for each Borrower follows]

 

    	Page 14 of 16

     

    

 

SCHEDULE
A TO ACCOUNTS RECEIVABLE FINANCING AGREEMENT

 

	1.	Administrative
    Fee: 0.45%.
	 	 
	2.	Advance(s)
    shall mean amounts loaned to Borrower hereunder as distinguished from fees and interest charged thereon.
	 	 
	3.	Advance
    Rate: up to 90% of the gross face amount of each Eligible Accounts Receivable financed under this Agreement in advance of
    its due date. Lender may adjust the Advance Rate upward or downward at any time, in its sole discretion.
	 	 
	4.	Audit
    Fee – will be charged to client at $950 per day.
	 	 
	5.	Default
    Rate: a rate per annum equal to 5.00%, plus the Interest Rate.
	 	 
	6.	Financing
    Fees shall mean collectively, the Administrative Fee and Minimum Monthly Sales Shortfall Fee.
	 	 
	7.	Facility
    Fee: waived.
	 	 
	8.	Renewal
    Term: 12 months.
	 	 
	9.	Maximum
    Facility Limit Amount: $6,000,000.
	 	 
	10.	Minimum
    Monthly Sales Shortfall Fee: shall be calculated as follows Minimum Monthly Sales for the particular month minus the actual
    Monthly Financing Volume for the particular month multiplied by the Administrative Fee.
	 	 
	11.	Minimum
    Monthly Sales: $1.250,000 of Accounts per month.
	 	 
	12.	Original
    Term: 12 months.
	 	 
	13.	Place
    of Business, Location of Collateral:

 

Boxlight
- 1045 Progress Circle, Lawrenceville, GA 30043 and

EOSEDU
- 8767 East Via De Ventura, Suite 126, Scottsdale, AZ 85258

 

	14.	Trade
    Names and Styles:

 

Boxlight

EOSEDU

Boxlight
Latinoamerica, S.A. DE C.V. / Boxlight Latinoamerica

Boxlight
Latinoamerica Servicios, S.A. DE C.V. / Boxlight Latinoamerica Servicios

Mimio
LLC / Mimio

Genesis
Collaboration, LLC / Genesis Collaboration

Cohuborate
Ltd. / Cohuborate

Qwizdom
Inc. / Qwizdom

Qwizdom
UK Limited / Qwizdom UK

Modern
Robotics, Inc. / Modern Robotics

MyStemKits
Inc / MyStemKits

Boxlight
Display, Inc. / Boxlight Display / Display Projection EOS Education

Boxlight
Group Ltd-/ Boxlight Group / Boxlight Group UK

Boxlight
Holdings, Ltd./ Boxlight Holdings

 

	15.	Interest
    Rate: Base Rate + 3.5% on funds outstanding.
	 	 
	16.	Base
    Rate Floor: 3.25%
	 	 
	17.	Application
    of Payments: 3 days.

 

    	Page 15 of 16

     

    

 

SCHEDULE
B TO ACCOUNTS RECEIVABLE FINANCING AGREEMENT

 

Form
of Availability Certificate

 

    	Page 16 of 16

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