Document:

Exhibit
10.7 

 

SIXTH
AMENDMENT TO LOAN DOCUMENTS

 

THIS
SIXTH AMENDMENT TO LOAN DOCUMENTS (this “Amendment”), dated as of December 1, 2020, is among Stratos
Management Systems, Inc. (f/k/a Tango Merger Sub Corp.), a Delaware corporation (“Stratos”), American
Virtual Cloud Technologies, Inc. (f/k/a Pensare Acquisition Corp.), a Delaware corporation (“Parent”
and together with Stratos, collectively and individually, “Borrower”), COMPUTEX, INC., a Texas corporation
(“Computex”), FIRST BYTE COMPUTERS, INC., a Minnesota corporation (“First Byte”), ENETSOLUTIONS,
L.L.C., a Texas limited liability company (“eNET”, and together with Computex and First Byte, collectively,
“Existing Guarantors”, and each, individually, an “Existing Guarantor”), AVCTECHNOLOGIES
USA INC., a Delaware corporation (“AVC”), and KANDY COMMUNICATIONS LLC, a Delaware limited liability company
(“KC”, and together with AVC, the “New Guarantors”, and each individually, a “New
Guarantor”, and together with the Existing Guarantors, the “Guarantors” and individually, a “Guarantor”),
and COMERICA BANK (“Bank”).

 

RECITALS:

 

A. Borrower
and Bank are party to that certain Credit Agreement dated as of December 18, 2017 (as the same has been or may hereafter be amended,
restated or otherwise modified from time to time, the “Credit Agreement”).

 

B. In
connection with the Credit Agreement, (i) Borrower and the Existing Guarantors (other than Parent) are party to that certain
Security Agreement dated as of December 18, 2017 in favor of Bank, (ii) Parent is party to that certain Security Agreement
dated as of April 7, 2020 in favor of Bank and (iii) New Guarantors are party to that certain Security Agreement dated as
of the date hereof in favor of Bank (collectively, as the same have been or may be amended, restated or modified from time to
time, the “Security Agreement”).

 

C. In
connection with the Credit Agreement, (i) the Existing Guarantors (other than Parent) are party to that certain Guaranty dated
as of December 18, 2017 in favor of Bank, and (ii) Parent is party to that certain Guaranty dated as of April 7, 2020 in favor
of Bank and (iii) New Guarantors are party to that certain Guaranty dated as of the date hereof in favor of Bank (collectively,
as the same have been or may hereafter be amended, restated or otherwise modified from time to time, the “Guaranties”).

 

D. In
connection with the Credit Agreement, the Borrower and Existing Guarantors are party to that certain Advance Formula Agreement
dated as of December 18, 2017 (as the same has been or may hereafter be amended, restated or otherwise modified from time to time,
the “Advance Formula Agreement”).

 

E. Borrower,
Guarantors, and Bank now desire to amend the Credit Agreement and the other Loan Documents as provided herein.

 

NOW,
THEREFORE, in consideration of the premises herein contained and other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows (all provisions of this Amendment being effective as of
the date hereof unless otherwise stated herein):

 

     

     

    

 

ARTICLE
I

Definitions

 

Section
1.1 Definitions. Capitalized terms used in this Amendment, to the extent not otherwise defined herein, shall have the
same meanings as in the Credit Agreement, as amended hereby.

 

ARTICLE
II

Amendments to Loan Documents

 

Section
2.1 Additions to Definitions in Section 1(a) of the Credit Agreement. The following definitions are hereby added
to Section 1(a) of the Credit Agreement in alphabetical order in their entirety as follows:

 

“2020
Subscription Agreement” shall mean that certain Securities Purchase Agreement dated as of [December 1], 2020
by and among AVCT, SPAC Opportunity Partners Investment Sub LLC, Ribbon Communications Inc. and the other parties thereto.

 

“AVCT”
shall mean ACVtechnologies USA Inc., a Delaware corporation.

 

“KC
Acquisition” shall mean the acquisition by AVCT of certain assets of the RC Sellers pursuant to the terms and conditions
of the KC Purchase Agreement.

 

“KC
Purchase Agreement” shall mean that certain Amended and Restated Purchase Agreement dated as of [December 1],
2020 by and among RC Sellers and Parent.

 

“RC
Sellers” shall mean, collectively, Ribbon Communications Inc., a Delaware corporation, Ribbon Communications Operating
Company, Inc., a Delaware corporation, and Ribbon Communications International Limited, an Ireland company.

 

“Sixth
Amendment Effective Date” shall mean December ___, 2020.

 

“TSA
Agreement” shall mean that certain Transition Services Agreement dated as of [December 1], 2020 by and between
Parent and Ribbon Communications Operating Company, Inc.

 

Section
2.2 Amendment to Definitions in Section 1(a) of the Credit Agreement. The following definition in Section 1(a) of the
Credit Agreement is amended and restated to read in its entirety as follows:

 

    2

     

    

 

“2020
Subordinated Debt” shall mean the Debt owed by Parent, Borrower and Borrower’s Subsidiaries pursuant to the following
documents: (a) the Securities Purchase Agreement dated on or about the Third Amendment Effective Date, by and among Parent and
the investors party thereto and any and all convertible debentures (including any such debentures issued following the Third Amendment
Effective Date in accordance with the terms of such Securities Purchase Agreement) and warrants to purchase common stock issued
pursuant thereto; (b) any other convertible debentures and warrants having substantially the same terms, conditions and subordination
provisions as the debentures and warrants issued pursuant to the foregoing clause (a) issued pursuant to one or more agreements
entered into on or after the Fifth Amendment Effective Date; (c) the Registration Rights Agreement dated on or about the Third
Amendment Effective Date, by and among Parent and the holders party thereto; (d) the subordinated promissory notes dated on or
about or within 60 days following, the Third Amendment Effective Date in an amount not to exceed $7,000,000 in the aggregate,
by Parent in favor of certain holders party thereto and issued in settlement of certain obligations of Parent to the holders thereof
as evidenced by letter agreements (or other agreements evidencing such settlements) dated on or about or within 60 days following,
the Third Amendment Effective Date between Parent and each holder of such subordinated promissory notes; and (e) any other documents,
agreement, and instruments related thereto; provided, however, that the aggregate principal amount of any convertible debentures
issued pursuant to the foregoing clauses (a) and (b) shall not exceed, in the aggregate, $200,000,000.

 

Section
2.3 Addition to Section 2 of the Credit Agreement. A new clause (d) is added to the end of Section 2 of the
Credit Agreement to read in its entirety as follows:

 

(d) Mandatory
Prepayments.

 

(i) Subject
to clause (ii) below, immediately upon receipt by any Loan Party of any net cash proceeds from the issuance of any Equity Interests
of such Loan Party or from the issuance of any Subordinated Debt in an aggregate amount equal to or greater than $12,500,000,
Borrower shall make a prepayment to Bank in an amount equal to $250,000 for the first $12,500,000 of net cash proceeds received
and thereafter, prepayments of $250,000 for each additional incremental $12,500,000 of net cash proceeds received by Borrower.

 

(ii) Each
mandatory prepayment under this clause (d) shall be applied to the Indebtedness in such order and manner as determined by Bank.
No prepayment penalty or premium shall be required with respect to any mandatory prepayment made pursuant to this clause (d);
provided however, the foregoing shall in no way limit the obligation of Borrower to reimburse Bank, on demand, for any resulting
loss, cost or expense incurred by Bank as a result of Borrower making any prepayment of Indebtedness bearing interest at the LIBOR-based
Rate (as defined in the Revolving Credit Note and Term Note, as applicable) on any date other than the last day of the Interest
Period (as defined in the Revolving Credit Note and Term Note, as applicable) applicable thereto, in accordance with the provisions
of the Revolving Credit Note and Term Note, as applicable.

 

Section
2.4 Addition to Section 4(k) of the Credit Agreement. A new sentence is added to the end of Section 4(k) of
the Credit Agreement to read in its entirety as follows:

 

    3

     

    

 

Notwithstanding
anything to the contrary contained in this clause (k), AVCT may permit RC Sellers to receive collections and receipts
of AVCT and its Subsidiaries in accordance with the TSA Agreement for the period beginning on the Sixth Amendment Effective Date
through and including [December 1], 2021.

 

Section
2.5 Amendment to Section 4(m) of the Credit Agreement. Section 4(m) of the Credit Agreement is amended and
restated to read in its entirety as follows:

 

(m) 2020
Subscription Agreement and other Funds. Upon receipt of any proceeds under the 2020 Subscription Agreement or any proceeds
from any other Subordinated Debt issuances or issues of Equity Interests, Borrower shall promptly deposit all such proceeds into
a deposit account maintained with Bank.

 

Section
2.6 Amendment to Section 5(a) of the Credit Agreement. The period at the end of Section 5(a) of the Credit
Agreement is deleted and the following is inserted in lieu thereof:

 

,
and (iv) the redemption of up to $5,000,000 of convertible debentures issued to the RK Sellers, in accordance with the terms of
the KC Purchase Agreement and that certain Investor Rights Agreement dated as of [December 1, 2020] by and among Parent,
Ribbon Communications, Inc. and the other parties thereto, in each case, as in effect as of the Sixth Amendment Effective Date,
so long as no Event of Default has occurred and is continuing or would result therefrom.

 

Section
2.7 Amendment to Section 5(i) of the Credit Agreement. The period at the end of Section 5(i) of the Credit
Agreement is deleted and the following is inserted in lieu thereof:

 

,
and (vii) the KC Acquisition.

 

ARTICLE
III

 

No
Waiver

 

Section
3.1 No Waiver. Nothing contained herein shall be construed as a consent to or waiver of any Default or Event of Default,
which may now exist or hereafter occur or any violation of any term, covenant or provision of the Credit Agreement or any other
Loan Document. All rights and remedies of Bank are hereby expressly reserved with respect to any such Default or Event of Default.
Nothing contained herein shall affect or diminish the right of Bank to require strict performance by each Loan Party of each provision
of any Loan Document to which such Loan Party is a party, except as expressly provided herein. Except as amended hereby, all terms
and provisions and all rights and remedies of Bank under the Loan Documents shall continue in full force and effect and are hereby
confirmed and ratified in all respects.

 

ARTICLE
IV

Conditions Precedent

 

Section
4.1 Conditions Precedent. The effectiveness of this Amendment is subject to the satisfaction of the following conditions
precedent:

 

    4

     

    

 

 

(a) Bank
shall have received this Amendment properly executed by Borrower, Guarantors and Bank.

 

(b) Bank
shall have a Guaranty, a Security Agreement and an Intellectual Property Security Agreement executed by the New Guarantors and
in favor of Bank, all in form and substance satisfactory to Bank.

 

(c) Bank
shall have received any and all guaranties, security agreements, pledge agreements, assignments, financing statements and other
documents requested by Bank to evidence the Indebtedness or to create, protect or perfect the Liens upon the Collateral required
by Bank as security for the Indebtedness and to accord Bank a perfected security position in the Collateral, subject only to Permitted
Encumbrances.

 

(d) Bank
shall have received true, correct and complete copies of the 2020 Subscription Agreement and all documents, instruments and other
agreements executed in connection therewith, all of which shall be in form and substance satisfactory to Bank.

 

(e) Bank
shall have received true, correct and complete copies of the KC Purchase Agreement and all documents, instruments and other agreements
executed in connection therewith, including without limitation, the TSA Agreement, all of which shall be in form and substance
satisfactory to Bank.

 

(f) Bank
shall have received UCC searches, evidence of insurance, evidence of title and such other information as Bank may reasonably require,
and all of the foregoing shall be in form and content acceptable to Bank.

 

(g) Bank
shall have received copies of the organizational documents and evidence of existence, good standing, qualification to conduct
business and authority for each New Guarantor and signatory on behalf of each New Guarantor.

 

(h) The
representations and warranties contained herein and in all other Loan Documents, as amended hereby, shall be true and correct
in all material respects as of the date hereof as if made on the date hereof.

 

(i) No
Default or Event of Default shall have occurred and be continuing.

 

(j) Bank
shall have received payment of an amendment fee in an amount equal to $10,000, which amendment fee is deemed fully earned, due
and payable as of the date hereof.

 

ARTICLE
V

Ratifications, Representations and Warranties

 

Section
5.1 Ratifications. The terms and provisions set forth in this Amendment shall modify and supersede all inconsistent
terms and provisions set forth in the Credit Agreement and except as expressly modified and superseded by this Amendment, the
terms and provisions of the Credit Agreement and the other Loan Documents are ratified and confirmed and shall continue in full
force and effect. Each of Borrower, Guarantors and Bank agree that the Credit Agreement, as amended hereby, and the other Loan
Documents shall continue to be legal, valid, binding and enforceable in accordance with their respective terms. Each Guarantor
hereby consents and agrees to this Amendment and agrees that each Loan Document to which such Person is a party shall remain in
full force and effect and shall continue to (a) in the case of the Guaranty, guarantee the Indebtedness (as defined in the Guaranty)
and the other amounts and obligations as provided in the Guaranty, and (b) be the legal, valid and binding obligation of such
Person and enforceable against such Person in accordance with its terms.

 

    5

     

    

 

Section
5.2 Representations and Warranties. Each of Borrower and Guarantors hereby represents and warrants to the Bank that
(a) with respect to Borrower, the execution, delivery and performance of this Amendment and any and all other Loan Documents executed
and/or delivered in connection herewith have been authorized by all requisite company or other action on the part of Borrower
and will not violate the charter or organizational documents of Borrower, (b) the representations and warranties contained in
the Credit Agreement and each other Loan Document are true and correct in all material respects on and as of the date hereof as
though made on and as of the date hereof (except for such representations and warranties as are limited by their express terms
to a specific date), and (c) effective upon the execution of this Amendment and the Loan Documents executed in connection herewith,
no Default or Event of Default has occurred and is continuing.

 

ARTICLE
VI

Miscellaneous

 

Section
6.1 Survival of Representations and Warranties. All representations and warranties made in this Amendment or any other
document executed in connection herewith shall survive the execution and delivery of this Amendment, and no investigation by Bank
or any closing shall affect the representations and warranties or the right of Bank to rely upon them.

 

Section
6.2 Reference to Agreement. Each of the Credit Agreement, the Loan Documents and any and all other agreements, documents,
or instruments now or hereafter executed and delivered pursuant to the terms hereof or pursuant to the terms of the Credit Agreement
and the Loan Documents, as amended hereby, are hereby amended so that any reference in such documents to the Credit Agreement
and the Loan Documents shall mean a reference to the Credit Agreement and the Loan Documents as amended hereby.

 

Section
6.3 Expenses of Bank. As provided in the Credit Agreement, each of Borrower agrees to pay on written demand all reasonable
and documented costs and expenses incurred by Bank in connection with the preparation, negotiation, and execution of this Amendment
and any other documents executed pursuant hereto and any and all amendments, modifications, and supplements thereto, including
without limitation the reasonable costs and fees of Bank’s legal counsel, and all costs and expenses incurred by Bank in
connection with the enforcement or preservation of any rights under the Credit Agreement, as amended hereby, or any other document
executed in connection therewith, including without limitation the costs and reasonable fees of Bank’s legal counsel.

 

    6

     

    

 

Section
6.4 Severability. Any provision of this Amendment held by a court of competent jurisdiction to be invalid or unenforceable
shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held
to be invalid or unenforceable.

 

Section
6.5 Applicable Law. This Amendment and all other documents executed pursuant hereto shall be deemed to have been made
and to be performable in Dallas, Dallas County, Texas and shall be governed by and construed in accordance with the laws of the
State of Texas.

 

Section
6.6 Successors and Assigns. This Amendment is binding upon and shall inure to the benefit of Bank, each Borrower, each
Guarantor, and their respective successors, assigns, heirs, executors and personal representatives, except neither Borrower, nor
any Guarantor may assign or transfer any of its rights or obligations hereunder without the prior written consent of Bank.

 

Section
6.7 Counterparts. This Amendment may be executed in any number of counterparts and by different parties on separate
counterparts, each of which shall be an original and all of which taken together shall constitute one and the same agreement.
The signature of a party to any counterpart shall be sufficient to legally bind such party. Bank may remove the signature pages
from one or more counterparts and attach them to any other counterpart for the purpose of having a single document containing
the signatures of all parties. Delivery of an executed counterpart of a signature page to this Amendment by facsimile, emailed
portable document format (“pdf”), or tagged image file format (“tiff”) or any other electronic
means that reproduces an image of the actual executed signature page shall be effective as delivery of an original executed counterpart
of a signature page to this Amendment. Any party sending an executed counterpart of a signature page to this Amendment by facsimile,
pdf, tiff or any other electronic means shall also send the original thereof to Bank within five (5) days thereafter, but failure
to do so shall not affect the validity, enforceability, or binding effect of this Amendment.

 

Section
6.8 Headings. The headings, captions, and arrangements used in this Amendment are for convenience only and shall not
affect the interpretation of this Amendment.

 

Section
6.9 ENTIRE AGREEMENT. THE CREDIT AGREEMENT, THIS AMENDMENT AND ALL OTHER INSTRUMENTS, DOCUMENTS AND AGREEMENTS EXECUTED
AND DELIVERED IN CONNECTION WITH THE CREDIT AGREEMENT OR THIS AMENDMENT EMBODY THE FINAL, ENTIRE AGREEMENT AMONG THE PARTIES HERETO
AND SUPERSEDE ANY AND ALL PRIOR COMMITMENTS, AGREEMENTS, REPRESENTATIONS AND UNDERSTANDINGS, WHETHER WRITTEN OR ORAL, RELATING
TO THIS AMENDMENT, AND MAY NOT BE CONTRADICTED OR VARIED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OR
DISCUSSIONS OF THE PARTIES HERETO. THERE ARE NO ORAL AGREEMENTS AMONG THE PARTIES HERETO.

 

    7

     

    

 

Section
6.10 INDEMNIFICATION OF BANK. EACH OF THE LOAN PARTIES HEREBY AGREES TO INDEMNIFY BANK AND EACH AFFILIATE THEREOF AND
THEIR RESPECTIVE OFFICERS, DIRECTORS, SHAREHOLDERS, EMPLOYEES, ATTORNEYS, AFFILIATES, AND AGENTS (COLLECTIVELY, “RELEASED
PARTIES”) FROM, AND HOLD EACH OF THEM HARMLESS AGAINST, ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES,
JUDGMENTS, DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING ATTORNEYS’ FEES) TO WHICH ANY OF THEM MAY BECOME SUBJECT WHICH
DIRECTLY OR INDIRECTLY ARISE FROM OR RELATE TO (a) ANY AND ALL FAILURES BY SUCH LOAN PARTY TO COMPLY WITH ITS AGREEMENTS
CONTAINED IN THE LOAN DOCUMENTS, (b) THE NEGOTIATION, EXECUTION, DELIVERY, PERFORMANCE, ADMINISTRATION, OR ENFORCEMENT OF
ANY OF THE LOAN DOCUMENTS PRIOR TO THE DATE HEREOF, (c) ANY OF THE TRANSACTIONS CONTEMPLATED BY THE LOAN DOCUMENTS PRIOR
TO THE DATE HEREOF, (d) ANY BREACH PRIOR TO THE DATE HEREOF BY SUCH LOAN PARTY OR SUMMIT OF ANY REPRESENTATION, WARRANTY,
COVENANT, OR OTHER AGREEMENT CONTAINED IN ANY OF THE LOAN DOCUMENTS OR (e) ANY INVESTIGATION, LITIGATION, OR OTHER PROCEEDING,
INCLUDING, WITHOUT LIMITATION, ANY THREATENED INVESTIGATION, LITIGATION, OR OTHER PROCEEDING RELATING TO ANY OF THE FOREGOING
(COLLECTIVELY, “RELEASED CLAIMS”). WITHOUT LIMITING ANY PROVISION OF THIS AMENDMENT, IT IS THE EXPRESS INTENTION
OF THE PARTIES HERETO THAT EACH PERSON TO BE INDEMNIFIED UNDER THIS SECTION SHALL BE INDEMNIFIED FROM AND HELD HARMLESS AGAINST
ANY AND ALL LOSSES, LIABILITIES, CLAIMS, DAMAGES, PENALTIES, JUDGMENTS, DISBURSEMENTS, COSTS, AND EXPENSES (INCLUDING ATTORNEYS’
FEES) ARISING OUT OF OR RESULTING FROM THE SOLE OR CONTRIBUTORY NEGLIGENCE OF SUCH PERSON; PROVIDED, HOWEVER, NO PERSON SHALL
BE INDEMNIFIED HEREUNDER FOR ITS OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT.

 

Section
6.11 WAIVER AND RELEASE. TO INDUCE BANK TO AGREE TO THE TERMS OF THIS AMENDMENT, EACH OF THE LOAN PARTIES REPRESENTS
AND WARRANTS THAT AS OF THE DATE OF THIS AMENDMENT IT OR HE HAS NO CLAIMS AGAINST RELEASED PARTIES AND IN ACCORDANCE THEREWITH
IT:

 

(a) WAIVER.
WAIVES ANY AND ALL SUCH CLAIMS, WHETHER KNOWN OR UNKNOWN, ARISING PRIOR TO THE DATE OF THIS AMENDMENT; AND

 

(b) RELEASE.
RELEASES, ACQUITS AND FOREVER DISCHARGES RELEASED PARTIES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE STATE AND FEDERAL LAW,
FROM ANY AND ALL OBLIGATIONS, INDEBTEDNESS, LIABILITIES, CLAIMS, COUNTERCLAIMS, CONTROVERSIES, COSTS, DEBTS, SUMS OF MONEY, ACCOUNTS,
BONDS, BILLS, RIGHTS, CAUSES OF ACTION OR DEMANDS WHATSOEVER, WHETHER KNOWN OR UNKNOWN, SUSPECTED OR UNSUSPECTED, IN LAW OR EQUITY,
WHICH SUCH LOAN PARTY EVER HAD, NOW HAS, CLAIMS TO HAVE OR MAY HAVE AGAINST ANY RELEASED PARTY ARISING PRIOR TO THE DATE HEREOF
AND FROM OR IN CONNECTION WITH THIS AMENDMENT, THE LOAN DOCUMENTS OR THE TRANSACTIONS DIRECTLY OR INDIRECTLY CONTEMPLATED THEREBY.

 

Section
6.12 COVENANT NOT TO SUE. EACH OF THE LOAN PARTIES FURTHER COVENANTS NOT TO SUE THE RELEASED PARTIES ON ACCOUNT OF ANY
OF THE RELEASED CLAIMS, AND EXPRESSLY WAIVES ANY AND ALL DEFENSES IT OR HE MAY HAVE IN CONNECTION WITH ITS OR HIS OBLIGATIONS
UNDER THIS AMENDMENT OR THE OTHER LOAN DOCUMENTS. THIS SECTION IS IN ADDITION TO AND SHALL NOT IN ANY WAY LIMIT ANY OTHER RELEASE,
COVENANT NOT TO SUE, OR WAIVER BY SUCH LOAN PARTY IN FAVOR OF THE RELEASED PARTIES.

 

[Remainder
of Page Intentionally Left Blank. Signature Pages Follow.]

 

    8

     

    

 

Executed
as of the date first written above.

 

	 	BORROWER:
	 	 
	 	Stratos Management Systems, Inc. (f/k/a Tango Merger Sub Corp.) and
	 	 
	 	By:	/s/ Thomas H. King
	 	 	Thomas H. King
	 	 	Treasurer and Secretary
	 	 
	 	American Virtual Cloud Technologies, Inc.
	 	(f/k/a Pensare Acquisition Corp.)
	 	 
	 	By:	 /s/ Thomas H. King
	 	 	Thomas H. King
	 	 	Chief Financial Officer
	 	 
	 	GUARANTORS:
	 	 
	 	COMPUTEX, INC.
	 	FIRST BYTE COMPUTERS, INC.
	 	eNETsolutions, L.L.C.
	 	KANDY COMMUNICATIONS LLC
	 	 
	 	By:	/s/ Thomas H. King
	 	 	Thomas H. King
	 	 	Treasurer and Secretary of each entity listed above
	 	
	 	AVCTECHNOLOGIES USA INC.
	 	 
	 	By:	 /s/ Thomas H. King
	 	 	Thomas H. King
	 	 	Chief Financial Officer
	 	 	 
	 	BANK:
	 	 
	 	COMERICA BANK
	 	 
	 	By:	 /s/ Chris D. Reed
	 	 	Chris D. Reed
	 	 	Vice President

 

 

9Exhibit 10.8

 

Employment
Agreement

 

This Employment Agreement
(this "Agreement") is made effective as of December 1, 2020 by and between American Virtual Cloud Technologies, Inc.
("The Company") of 1720 Peachtree Street, Suite 629, Atlanta, Georgia, 30309 and Michael Dennis, ("Mr. Dennis”),
of 95 West Main Street, 5-261, Chester, NJ 07930.

 

The Company is engaged
in the business of Information Technology Services. Mr. Dennis will primarily perform the job duties at the following location:
1298 Waterford Green Trail, Marietta, GA 30068.

 

		A.	The Company desires to
have the services of Mr. Dennis.

 

		B.	Mr. Dennis is willing
to be employed by The Company.

 

Therefore, the parties agree as follows:

 

EMPLOYMENT.
The Company shall employ Mr. Dennis as Chief Operating Officer. Mr. Dennis accepts and agrees to such employment, and agrees to
be subject to the general supervision, advice and direction of The Company and the Company's Board of Directors.

 

BEST EFFORTS OF
EMPLOYEE. Mr. Dennis agrees to perform faithfully, industriously, and to the best of his ability, experience, and talents,
all of the duties that may be required by the express and implicit terms of this Agreement, to the reasonable satisfaction of The
Company. Such duties shall be provided at such place(s) as the needs, business, or opportunities of The Company may require from
time to time. Mr. Dennis shall devote his full business time to the rendition of such Services, subject to absences for customary
vacations and for temporary illness. In addition, Mr. Dennis will not engage in any other gainful occupation which requires his
personal attention and/or creates a conflict of interest with job responsibilities under this Agreement without the prior approval
of the Board, with the exception that Mr. Dennis may personally trade in stock, bonds, securities, commodities or real estate investments
for his own benefit.

 

COMPENSATION OF
EMPLOYEE. As compensation for the services provided by Mr. Dennis under this Agreement, The Company will pay Mr. Dennis an
annual salary of $420,000 payable in accordance with the Company's usual payroll procedures. Upon termination of this Agreement,
payments under this paragraph shall cease; provided, however, that Mr. Dennis shall be entitled to payments for periods or partial
periods that occurred prior to the date of termination and for which Mr. Dennis has not yet been paid, and for any commission earned
in accordance with The Company' customary procedures, if applicable. Accrued vacation will be paid in accordance with state law
and The Company' customary procedures. This section of the Agreement is included only for accounting and payroll purposes and should
not be construed as establishing a minimum or definite term of employment.

 

    1

     

    

 

The Company may award
Mr. Dennis an At-Risk Annual bonus (the Bonus), in an amount up to 100% of his starting base salary. Such Bonus will be based on
personal and corporate performance factors agreed upon by The Company.

 

Additionally, The
Company will award Mr. Dennis, subject to approval of the Company’s Board of Directors, 300,000 Restricted Stock Units under
the Company’s Equity Incentive Plan.

 

EXPENSE REIMBURSEMENT.
The Company will reimburse Mr. Dennis for "out-of-pocket" expenses incurred in accordance with the Company's policies
in effect from time to time.

 

RECOMMENDATIONS
FOR IMPROVING OPERATIONS. Mr. Dennis shall

provide The Company
with all information, suggestions, and recommendations regarding The Company's business, of which Mr. Dennis has knowledge, that
will be of benefit to The Company.

 

CONFIDENTIALITY.
The Company recognizes that Mr. Dennis has and will have information regarding the following:

		-	inventions

		-	products

		-	product design

		-	processes

		-	technical matters

		-	trade secrets

		-	copyrights

		-	customer lists

		-	prices

		-	costs

		-	business affairs

		-	future plans

 

and other vital information
items (collectively, "Information") which are valuable, special and unique assets of The Company. Mr. Dennis agrees that
he will not at any time or in any manner, either directly or indirectly, divulge, disclose, furnish, make accessible, or communicate
any Information to any third party without the prior written consent of The Company. Mr. Dennis will protect the Information and
treat it as strictly confidential. A violation by Mr. Dennis of this paragraph shall be a material violation of this Agreement
and will justify legal and/or equitable relief.

 

This Agreement is
in compliance with the Defend Trade Secrets Act and provides civil or criminal immunity to any individual for the disclosure of
trade secrets: (i) made in confidence to a federal, state, or local government official, or to an attorney when the disclosure
is to report suspected violations of the law; or (ii) in a complaint or other document filed in a lawsuit if made under seal.

 

UNAUTHORIZED DISCLOSURE
OF INFORMATION. If it appears that Mr. Dennis has disclosed (or has threatened to disclose) Information in violation of this
Agreement, The Company shall be entitled to an injunction to restrain Mr. Dennis from disclosing, in whole or in part, such Information,
or from providing any services to any party to whom such Information has been disclosed or may be disclosed. The Company shall
not be prohibited by this provision from pursuing other remedies, including a claim for losses and damages, attorneys' fees and
costs incurred while seeking to enforce this Agreement.

 

    2

     

    

 

CONFIDENTIALITY
AFTER TERMINATION OF EMPLOYMENT. The confidentiality provisions of this Agreement shall remain in full force and effect for
a two-year period after the termination of Mr. Dennis's employment. During such two-year period, neither party shall make or permit
the making of any public announcement or statement of any kind regarding Mr. Dennis's employment by or connection with The Company.

 

INTELLECTUAL PROPERTY
RIGHTS. All information, ideas, concepts, improvements, discoveries, and inventions, whether patentable or not, which are conceived,
made, developed or acquired by Mr. Dennis, individually or in conjunction with others, during his employment by The Company (whether
during business hours or otherwise and whether on The Company' premises or otherwise) which relate to The Company's business, products
or services (including, without limitation, all such information relating to corporate opportunities, research, financial and sales
data, pricing and trading terms, evaluations, opinions, interpretations, acquisition prospects, the identity of customers or their
requirements, the identity of key contacts within the customer's organizations or within the organization of acquisition prospects,
or marketing and merchandising techniques, prospective names, and marks), and all writings or materials of any type embodying any
of such items, shall be disclosed to The Company and are and shall be the sole and exclusive property of The Company.

 

NON-COMPETE AGREEMENT.
Mr. Dennis agrees and covenants that during his employment by The Company and for a period of one-year following the termination
of Mr. Dennis's employment, whether such termination is voluntary or involuntary, Mr. Dennis will not directly or indirectly engage
in any business competitive with The Company.

 

Directly or indirectly
engaging in any competitive business includes, but is not limited to: (i) engaging in a business as owner, partner, or agent, (ii)
becoming an employee, rendering advice or offering services to any third party that is engaged in such business, (iii) becoming
interested directly or indirectly in any such business, or (iv) soliciting any customer or current Executive or Employee of The
Company for the benefit of a third party that is engaged in such business. Mr. Dennis agrees that this non-compete provision will
not adversely affect Mr. Dennis's livelihood.

 

During the Employment
Period, Mr. Dennis will devote his full-time efforts to the business of The Company and will not engage in consulting work or any
trade or business for his own account or for or on behalf of any other person, firm or corporation that competes, conflicts or
interferes with the performance of his duties under this Agreement.

 

BENEFITS. Mr.
Dennis shall be entitled to standard and customary employment benefits, including holidays, officer liability and indemnification
insurance, vacation, health insurance, disability insurance and life insurance as provided by The Company policies in effect from
time to time.

 

    3

     

    

 

TERM/TERMINATION. Mr. Dennis's employment under this
Agreement shall be for an unspecified term on an "at will" basis. This Agreement may be terminated by The Company upon
No written notice, and by Mr. Dennis upon Two weeks written notice. If The Company shall so terminate this Agreement, Mr. Dennis
shall be entitled to compensation for One year of base salary. bonus and benefits (including health care and life insurance as
applicable) beyond the termination date of such termination, unless Mr. Dennis is in violation of this Agreement. If Mr. Dennis
is in violation of this Agreement, The Company may terminate employment with cause without notice and with compensation to Mr.
Dennis only to the date of such termination. As used in this Agreement, the term "Cause" shall include, without limitation:
insubordination; dishonest; fraud; serious dereliction of duty; criminal activity; acts of moral turpitude; conviction of a felony,
plea of guilty or nolo contendere to a felony charge or any criminal act involving moral turpitude. The compensation paid
under this Agreement shall be Mr. Dennis's exclusive remedy. If Mr. Dennis's employment is terminated by The Company without cause,
Mr. Dennis shall continue to receive his base salary, bonus and benefits (including health care and life insurance as applicable)
for a period of One year of base salary from the effective date of termination (the "Severance Period").

 

The salary
and fringe benefits to be paid are referred to herein as the "Termination Compensation." Mr. Dennis shall not be entitled
to any Termination Compensation unless: (i) Mr. Dennis complies with all surviving provisions of any non-competition agreement,
non-solicitation agreement, confidentiality agreement or inventions assignment agreement that Mr. Dennis signed, and (ii) Mr. Dennis
executes and delivers to The Company, after a notice of termination, a release in form and substance acceptable to The Company,
by which Mr. Dennis releases The Company from any obligations and liabilities of any type whatsoever under this Agreement, except
for The Company' obligations with respect to the Termination Compensation, and that release shall not affect Mr. Dennis's right
to indemnification, if any, for actions taken within the scope of his employment. Notwithstanding anything herein, no Termination
Compensation shall be paid or otherwise provided until all applicable revocation periods have fully expired, and the mutual release
becomes fully and finally enforceable. The parties hereto acknowledge that the Termination Compensation to be provided is in consideration
for Mr. Dennis's release.

 

If Mr.
Dennis terminates this Agreement by providing appropriate notice, the Company, at its election, may (i) require Mr. Dennis to continue
to perform his duties hereunder for the full notice period, or (ii) terminate Mr. Dennis 's employment at any time during such
notice period, provided that any such termination shall not be deemed to be a termination without cause of Mr. Dennis 's
employment by The Company. Unless otherwise provided by this Section, all compensation and benefits paid by The Company to Mr.
Dennis shall cease upon his last day of employment.

 

TERMINATION DUE
TO DEATH. Mr. Dennis's employment under this Agreement will terminate immediately upon his death and The Company shall not
have any further liability or obligations to Mr. Dennis's estate, executors, heirs, assigns or any other person claiming under
or through Mr. Dennis's estate, except that Mr. Dennis's estate shall receive any accrued but unpaid salary or bonuses and any
life insurance benefits to be paid pursuant to Mr. Dennis's beneficiary designation.

 

    4

     

    

 

COMPLIANCE WITH
EMPLOYER'S RULES. Mr. Dennis agrees to comply with all of the rules and regulations of The Company.

 

RETURN OF PROPERTY.
Upon termination of this Agreement, Mr. Dennis shall deliver and return all Company and Company-related property (including
keys, records, notes, data, memoranda, models, and equipment) that is in Mr. Dennis's possession or under his control. Such obligation
shall be governed by any separate confidentiality or proprietary rights agreement signed by Mr. Dennis.

 

NOTICES. All
notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person or
on the third day after being deposited in the United States mail, postage paid, addressed as follows:

 

		Employer:	

 

American Virtual Cloud Technologies,
Inc.

Thomas H. King

Chief Financial Officer

1720 Peachtree Street, Suite
629

Atlanta, Georgia 30309

 

		Executive:	

 

Michael Dennis

95 West Main Street

 5-261,

Chester, NJ 07930.

 

Such addresses may
be changed from time to time by either party by providing written notice in the manner set forth above.

 

BINDING AGREEMENT.
This Agreement shall be binding upon and inure to the benefit of the parties hereto, their heirs, personal representatives, successors
and assigns. In the event The Company is acquired, is a non-surviving party in a merger, or transfers substantially all of its
assets, this Agreement shall not be terminated and the transferee or surviving company shall be bound by the provisions of this
Agreement. The parties understand that the obligations of Mr. Dennis are personal and may not be assigned by The Company.

 

ENTIRE AGREEMENT.
This Agreement contains the entire agreement of the parties and there are no other promises or conditions in any other agreement
whether oral or written. This Agreement supersedes any prior written or oral agreements between the parties.

 

AMENDMENT. This
Agreement may be modified or amended, if the amendment is made in writing and is signed by both parties.

 

    5

     

    

 

SEVERABILITY. If
any provisions of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue
to be valid and enforceable. If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting
such provision it would become valid or enforceable, then such provision shall be deemed to be written, construed, and enforced
as so limited.

 

WAIVER OF CONTRACTUAL
RIGHT. The failure of either party to enforce any provision of this Agreement shall not be construed as a waiver or limitation
of that party's right to subsequently enforce and compel strict compliance with every provision of this Agreement.

 

APPLICABLE LAW.
This Agreement shall be governed by the laws of the State of Georgia.

 

	EMPLOYER:	 
	The Company	 
	 	 
	By: 	/s/ Thomas H. King	Date: December 1, 2020
	 	 
	 	Thomas H. King	 
	 	CFO	 
	 	 
	AGREED TO AND ACCEPTED.	 
	 	 
	EXECUTIVE:	 
	 	 
	Michael Dennis	Date:  November 30, 2020
	 	 
	Michael Dennis	 

 

 

6

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