On September 30, 2021, iSun, Inc. entered into a Loan and Security Agreement with B. Riley Commercial Capital, LLC, as Lender. The proceeds of the Loan Agreement are expected to be used for acquisition finance, general corporate purposes, and working capital. The Loan Agreement provides for a $10,000,000 loan facility to the Company with a maturity date of October 15, 2022, at an interest rate of 8.0% per annum. The Loan is secured by an intellectual property security agreement (the IP Security Agreement) entered into in connection with the Loan, and by all assets of the Company and its wholly-owned subsidiaries: e-VIP Antlia LLC, e-VIP Ara LLC, e-VIP Aries LLC, a Delaware limited liability company, iSun Energy LLC, iSun Residential, Inc., iSun Utility, LLC and Peck Electric Co. Each of the Affiliates is a guarantor of the Loan. The outstanding balance of the Loan is due in full on the Maturity Date. The Loan Agreement provides for voluntary prepayment without premium or penalty, subject to certain conditions and exceptions. The Loan Agreement also provides for mandatory prepayments upon the occurrence of any of the following events: closing of any sale of the assets of the Company or the Affiliates, in which case the Company will make a mandatory prepayment in the amount of such sale; upon the closing of any sale of debt or equity securities of the Company, in which case the Company will make a mandatory prepayment in the amount of the net proceeds of such sale; or upon sales under the Sales Agreement between the Company and B. Riley Securities, Inc., disclosed on Current Report on Form 8-K, dated June 22, 2021, in which case the Company will make mandatory prepayments with the net proceeds from such sales. In connection with Loan the Company issued an Irrevocable Placement Notice to B. Riley Securities, Inc. under the At Market Issuance Sales Agreement dated June 21, 2021 between the Company and the Placement Agent pursuant to which the Company directed the Placement to sell on a monthly basis up to and including 20% of the average monthly trading volume of the Company's shares of Common Stock on Nasdaq as calculated on at trailing 30-day basis. Sales by the Placement Agent may commence on October 10, 2021 and continue until such time as all obligations of the Company under the Loan Agreement have been paid in full. The Company agreed to pay all of the Lender's expenses in connection with the Loan, accordingly, the Company received net proceeds of approximately $9,965,000 on September 30, 2021. Upon repayment in full of the Loan the Company is required to pay an origination fee of 4% of the original principal amount of the Loan, provided that such fee shall increase by 1% on January 15 and the 15th day thereafter up to a maximum of 7% in the aggregate. The Loan Agreement contains customary representations and warranties, covenants and events of default. The covenants set forth in the Loan Agreement include certain affirmative and negative operational and financial covenants, including, among other things, restrictions on the Company's ability to incur certain liens, make fundamental changes to its business or engage in transactions with affiliates. In addition, the Loan Agreement provides for certain events of default, the occurrence of which could result in the acceleration of the Company's obligations under the Loan Agreement. Events of default include, but are not limited to failure by the Company to make any payment of principal or interest when due, to perform its obligations under the Loan Agreement, or abide by its covenants, or agreements in the Loan Agreement, subject to applicable cure periods, certain breaches of representations or warranties, or the initiation of bankruptcy proceedings. Upon an event of default, the interest rate will be increased by an additional 3.0% on all amounts owed under the Loan Agreement.