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LOAN AGREEMENT Among DLH Holdings Corp. (the “Company”), DLH Solutions, Inc. and
Danya International, LLC (the “Subsidiary Borrowers” and together with the
Company, the “Borrower”) and Fifth Third Bank as “Bank” Dated as of May 2, 2016

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i TABLE OF CONTENTS Section Page 1. DEFINED TERMS
..............................................................................................................1
2. LOAN AMOUNT AND TERMS
......................................................................................13
2.1 Term Loan.
..........................................................................................................................
13 2.2 Repayment of Term Loan.
..................................................................................................
14 2.3 Revolving Line of Credit.
...................................................................................................
14 2.4 Availability Period.
.............................................................................................................
14 2.5 Letters of Credit.
.................................................................................................................
14 2.6 Borrowing
Base...................................................................................................................
15 2.7 Interest Rate.
.......................................................................................................................
15 2.8 Optional
Prepayment...........................................................................................................
15 2.9 Excess Cash Flow Recapture Payment
...............................................................................
15 2.10 Interest Calculation.
........................................................................................................
16 2.11 Interest Limited.
..............................................................................................................
16 2.12 Increased Costs.
..............................................................................................................
16 2.13 Inability to Determine Rates.
..........................................................................................
17 2.14 Mitigation Obligations.
...................................................................................................
18 3. FEES AND EXPENSES
....................................................................................................18
3.1 Fees.
....................................................................................................................................
18 3.2 Expenses.
............................................................................................................................
18 4. COLLATERAL
.................................................................................................................19
4.1 Personal Property.
...............................................................................................................
19 5. DISBURSEMENTS, PAYMENTS AND COSTS
............................................................20 5.1 Disbursements
and Payments.
.............................................................................................
20 5.2 Date of Application of Payments.
.......................................................................................
20 6. CONDITIONS
...................................................................................................................20
6.1 Loan Documents.
................................................................................................................
20 6.2 Lien Searches.
.....................................................................................................................
20 6.3 Authorizations.
....................................................................................................................
20 6.4 Governing Documents.
.......................................................................................................
21 6.5 Collateral Assignments and Related Documents.
............................................................... 21 6.6
Perfection and Evidence of Priority.
...................................................................................
21 6.7 Payment of Fees.
.................................................................................................................
21 6.8 Legal Opinion.
....................................................................................................................
21 6.9 Know Your Customer.
........................................................................................................
21 6.10 Ownership Interests in Subsidiary Borrowers.
................................................................ 21 6.11
Conditions to All Advances.
...........................................................................................
21 7. REPRESENTATIONS AND
WARRANTIES..................................................................22
7.1 Formation.
...........................................................................................................................
22 7.2 Authorization.
.....................................................................................................................
22 7.3 Enforceable Agreement.
......................................................................................................
23 7.4 No Conflicts.
.......................................................................................................................
23 7.5 Financial Information.
.........................................................................................................
23 7.6 Lawsuits.
.............................................................................................................................
23

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ii 7.7 Collateral.
............................................................................................................................
23 7.8 Use of Proceeds.
..................................................................................................................
23 7.9 Permits, Franchises.
............................................................................................................
24 7.10 Other Obligations.
...........................................................................................................
24 7.11 Tax Matters.
....................................................................................................................
24 7.12 No Event of Default.
.......................................................................................................
24 7.13 Margin Regulations, Public Holding Company.
............................................................. 24 7.14
Subsidiaries, Equity Investments.
...................................................................................
24 7.15 Compliance with Laws.
...................................................................................................
25 7.16 OFAC.
.............................................................................................................................
25 7.17 No Material Adverse Change
..........................................................................................
25 7.18 Patriot Act and Corrupt Practices Act.
............................................................................ 25
8. COVENANTS
...................................................................................................................25
8.1 Financial Information.
.........................................................................................................
26 8.2 Fixed Charge Coverage Ratio.
............................................................................................
27 8.3 Funded Indebtedness to EBITDA.
......................................................................................
27 8.4 Other Indebtedness
..............................................................................................................
28 8.5 Other Liens.
.........................................................................................................................
28 8.6 Maintenance of Assets.
.......................................................................................................
28 8.7 Investments.
........................................................................................................................
29 8.8 Loans.
..................................................................................................................................
30 8.9 Additional Negative Covenants.
.........................................................................................
30 8.10 Notices to Bank.
..............................................................................................................
30 8.11 Insurance.
........................................................................................................................
31 8.12 Compliance with Laws.
...................................................................................................
31 8.13 Books and
Records..........................................................................................................
31 8.14 Field Audits.
....................................................................................................................
31 8.15 Perfection of Liens.
.........................................................................................................
32 8.16 ERISA Plans.
..................................................................................................................
32 8.17 Maintenance of Properties.
.............................................................................................
33 8.18 Assignment of Claims Act.
.............................................................................................
33 8.19 Bank as Principal Depository.
.........................................................................................
33 8.20 Collections Account
........................................................................................................
33 8.21 Taxes and Assessments.
..................................................................................................
33 8.22 Conduct of
Business........................................................................................................
33 8.23 No Consumer Purpose.
...................................................................................................
34 9. DEFAULT AND REMEDIES
...........................................................................................34
9.1 Failure to Pay.
.....................................................................................................................
34 9.2 Other Bank Agreements.
.....................................................................................................
34 9.3 Cross-default.
......................................................................................................................
35 9.4 False Information.
...............................................................................................................
35 9.5 Bankruptcy.
.........................................................................................................................
35 9.6 Receivers.
............................................................................................................................
35 9.7 Judgments.
..........................................................................................................................
35 9.8 Corporate Existence.
...........................................................................................................
35 9.9 Default under Related Documents.
.....................................................................................
35 9.10 Security Interest.
.............................................................................................................
35 9.11 ERISA Plans.
..................................................................................................................
36 9.12 Breach of Borrowing Base.
.............................................................................................
36

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iii 9.13 Invalidity of Loan Documents
........................................................................................
36 9.14 Change in Control
...........................................................................................................
36 9.15 Suspension or Debarment
...............................................................................................
36 10. ENFORCING THIS AGREEMENT; MISCELLANEOUS
..............................................37 10.1 GAAP.
.............................................................................................................................
37 10.2 Georgia Law.
...................................................................................................................
37 10.3 Successors and Assigns.
..................................................................................................
37 10.4 Right of Setoff.
................................................................................................................
37 10.5 Severability; Waivers.
.....................................................................................................
37 10.6 Attorneys' Fees.
...............................................................................................................
37 10.7 One Agreement.
..............................................................................................................
38 10.8 Indemnification.
..............................................................................................................
38 10.9 Notices.
...........................................................................................................................
38 10.10 Further Assurances
..........................................................................................................
39 10.11 Headings.
........................................................................................................................
39 10.12 Patriot Act
Notice............................................................................................................
39 10.13 Counterparts.
...................................................................................................................
39 Exhibit A: Borrowing Base Agreement Exhibit B: Permitted Liens Exhibit C:
Backlog Report Exhibit D: Assignment of Claims Act Schedule 1 Adjusted EBITDA
Schedule 7.13 Other Equity Investments Schedule 7.14: Subsidiaries Schedule 8.4:
Existing Indebtedness Schedule 8.7: Existing Investments Schedule 8.8: Existing
Extensions of Credit

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LOAN AGREEMENT This Loan Agreement dated as of May 2, 2016 (this “Agreement”),
is among Fifth Third Bank, an Ohio Banking Corporation (the “Bank”), and DLH
Holdings Corp., a New Jersey corporation (the “Company”), DLH Solutions, Inc., a
Georgia corporation, Danya International, LLC, a Maryland limited liability
company (the “Subsidiary Borrowers” and together with the Company, the
“Borrowers”), 1. DEFINED TERMS As used in this Agreement, the following terms
shall have the meanings set forth below: “Acquisition” means any transaction, or
any series of related transactions, consummated on or after the date of this
Agreement, by which the Company or any of its Subsidiaries (i) acquires any
going business or all or substantially all of the assets of any Person or
division thereof, whether through purchase of assets, merger or otherwise or
(ii) directly or indirectly acquires (in one transaction or as the most recent
transaction in a series of transactions) at least a majority (in number of
votes) of the voting stock of any Person. “Adjusted EBITDA” means EBITDA plus
(i) cost synergies; (ii) non-cash stock option expense; (iii) executive
compensation; (iv) contract renewal bonuses; (v) excess facility costs; (vi)
severance expense; and (vii) normalized unallowable costs. For avoidance of any
doubt, Adjusted EBITDA shall be computed consistent with Schedule 1 attached
hereto which sets forth as an example a Summary Income Statement and EBITDA and
Adjusted EBITDA Schedule for the last four fiscal quarters ended March 31, 2016.
“Advance” means a borrowing hereunder (or conversion or continuation thereof)
consisting of the aggregate amount of the several Loans made by the Bank (or
converted or continued by the Bank on the same date of conversion or
continuation). “Affiliate” means, with respect to any Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is
Controlled by or is under common Control with the Person specified. “Agreement”
means this Loan Agreement as it may be amended, restated or modified from time
to time. “Applicable Margin” means 3.00%. “Attributable Indebtedness” means, on
any date, (a) in respect of any capital lease of any Person, the capitalized
amount thereof that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP, and (b) in respect of any Synthetic Lease
Obligation, the capitalized amount of the remaining lease payments under the
relevant lease that would appear on a balance sheet of such Person prepared as
of such date in accordance with GAAP if such lease were accounted for as a
capital lease. “Available Letter of Credit Commitment” means the Letter of
Credit Commitment minus an amount equal to the outstanding Letters of Credit
issued hereunder.

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{N0109914 } 2 6035818 “Borrower” is defined in the preamble hereto. “Borrowing
Base Agreement” means that certain Borrowing Base Agreement between Borrower and
Bank dated as of even date herewith. “Borrowing Base Certificate” means the
certificate showing the availability of Advances required pursuant to the
Borrowing Base Agreement. “Business Day” means any day other than a Saturday,
Sunday or other day on which commercial banks are authorized to close under the
Laws of, or are in fact closed in, Cincinnati, Ohio and, if such day relates to
any LIBOR Rate Increment, means any such day on which dealings in Dollar
deposits are conducted by and between banks in the London interbank Eurodollar
market. “Capital Expenditures” means expenditures to purchase real estate,
equipment, or machinery. “Capital Stock” means (i) in the case of any
corporation, all capital stock and any securities exchangeable for or
convertible into capital stock and any warrants, rights or other options to
purchase or otherwise acquire capital stock or such securities or any other form
of equity securities, (ii) in the case of an association or business entity, any
and all shares, interests, participations, rights or other equivalents (however
designated) of corporate stock, (iii) in the case of a partnership or limited
liability company, partnership or membership interests (whether general or
limited), and (iv) any other interest or participation that confers on a Person
the right to receive a share of the profits and losses of, or distributions of
assets of, the issuing Person. “Change of Control” shall mean the occurrence,
after the date hereof, of any of the following: (i) any person or group of
persons (within the meaning of Section 13 or 14 of the Securities Exchange Act
of 1934, as amended), other than any employee benefit plan or plans (within the
meaning of Section 3(3) of ERISA), shall have acquired beneficial ownership
(within the meaning of Rule 13d-3 promulgated by the Securities and Exchange
Commission under said Act) of 35% or more in voting power of the outstanding
Voting Stock of the Parent, or (ii) during any period of twelve (12) consecutive
calendar months, individuals who were directors of the Parent on the first day
of such period shall cease to constitute a majority of the board of directors of
the Parent other than because of the replacement as a result of death or
disability of one or more such directors; provided that for purposes of this
definition, the aggregate beneficial ownership of the Voting Stock of the Parent
as of the date hereof by Wynnefield Partners Small Cap Value, LP, Wynnefield
Partners Small Cap Value, LP I, Wynnefield Small Cap Value Offshore Fund, Ltd.
and any other affiliated entity controlled by Wynnefield Capital, Inc. shall not
constitute a Change of Control. “Change in Law” means the occurrence, after the
date of this Agreement, of any of the following: (a) the adoption or taking
effect of any rule, regulation, treaty or other law, (b) any change in any rule,
regulation, treaty or other law or in the administration, interpretation,
implementation or application thereof by any Governmental Authority or (c) the
making or issuance of any request, rule, guideline or directive (whether or not
having the force of law) by any Governmental Authority; provided that,
notwithstanding anything herein to the contrary, (i) the Dodd-Frank Wall Street
Reform and Consumer Protection Act and all requests, rules,

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{N0109914 } 3 6035818 guidelines or directives thereunder or issued in
connection therewith and (ii) all requests, rules, guidelines or directives
promulgated by the Bank for International Settlements, the Basel Committee on
Banking Supervision (or any successor or similar authority) or the United States
or foreign regulatory authorities, in each case pursuant to Basel III, and (iii)
all requests, rules, guidelines or directives issued by a Governmental Authority
in connection with the Bank’s submission or re-submission of a capital plan
under 12 C.F.R. § 225.8 or a Governmental Authority’s assessment thereof shall
in each case be deemed to be a “Change in Law”, regardless of the date enacted,
adopted, implemented, promulgated or issued. “Closing Date” means May 2, 2016.
“Code” means the Internal Revenue Code of 1986. “Collateral” shall mean any and
all assets and rights and interests in or to property of Borrower, whether real
or personal, tangible or intangible, in which a Lien is granted or purported to
be granted pursuant to the Collateral Documents. “Collateral Documents” means
all agreements, instruments and documents now or hereafter executed and
delivered in connection with this Agreement pursuant to which Liens are granted
or purported to be granted to Bank in Collateral securing all or part of the
Obligations each in form and substance reasonably satisfactory to Bank, as each
may be amended, restated or modified from time to time. “Collections Accounts”
means that certain accounts numbered #7460952679 and #7460952828 maintained at
Bank or such other account as Bank may designate as the Collections Account
(which accounts may be subject springing deposit account control agreements at
the Bank’s option). “Consolidated Entity” means at any date any Subsidiary, and
any other entity the accounts of which would be combined or consolidated with
those of the Borrower in its combined or consolidated financial statements if
such statements were prepared as of such date. “Control” means the possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise. “Controlling” and “Controlled” have
meanings correlative thereto. “Debtor Relief Laws” means the Bankruptcy Code of
the United States, and all other liquidation, conservatorship, bankruptcy,
assignment for the benefit of creditors, moratorium, rearrangement,
receivership, insolvency, reorganization, or similar debtor relief Laws of the
United States or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally. ‘Default” means any event or
condition that constitutes an Event of Default or that, with the giving of any
notice, the passage of time, or both, would be an Event of Default. “Default
Rate” means a rate of interest which is 200 basis points higher than the rate of
interest otherwise provided under this Agreement.

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{N0109914 } 4 6035818 “Dollar” and “$” mean lawful money of the United States.
“EBITDA” means net income, less income or plus loss from discontinued operations
and extraordinary items, plus income taxes, plus interest expense, plus
depreciation, depletion, amortization, calculated in each case for Borrower and
its Subsidiaries on a consolidated basis. For avoidance of any doubt, EBITDA
shall be computed consistent with Schedule 1 attached hereto which sets forth as
an example a Summary Income Statement and EBITDA and Adjusted EBITDA Schedule
for the last four fiscal quarters ended March 31, 2016. “Equity Interest” means
as to any Person all shares, options, warrants, general or limited partnership
interests, membership interests or other equivalents (regardless of how
designated) of or in a corporation, partnership, limited liability company or
equivalent entity whether voting or nonvoting, including common stock, preferred
stock or any other “equity security” (as such term is defined in Rule 3a11-1 of
the General Rules and Regulations promulgated by the Securities and Exchange
Commission under the Exchange Act). “Event of Default” has the meaning specified
in Article 9. “Excluded Taxes” means, with respect to Bank and its successors
and assigns, (a) taxes imposed on or measured by its gross or net income
(however denominated), or business privilege, Capital Stock, or franchise taxes
imposed on it (whether calculated on gross or net assets, gross or net income,
capitalization or any combination of the foregoing), by any Governmental
Authority, and (b) any branch profits taxes imposed by the United States or any
similar tax imposed by any other jurisdiction in which Borrower is located.
“Excess Cash Flow” with respect to any fiscal year equals EBITDA plus any change
in Working Capital, less the sum of voluntary principal prepayments on the Term
Loan and scheduled principal payments on funded debt (including amortization of
the Term Loan but excluding prepayments of the Revolving Loan except to the
extent such prepayment results in a permanent reduction in the Revolving Loan
commitment), cash interest charges, cash tax payments and tax distributions,
unfunded Capital Expenditures. “Fixed Charge Coverage Ratio” means the ratio of
(a) Borrower’s Adjusted EBITDA plus rent and operating lease payments, less cash
taxes paid, distributions, dividends and capital expenditures (other than
Capital Expenditures financed with the proceeds of purchase money Indebtedness
or Capital Leases to the extent permitted hereunder) and other extraordinary
items for the twelve month period then ending to (b) the consolidated sum of (i)
Borrower’s interest expense, and (ii) all principal payments with respect to
Indebtedness that were paid or were due and payable by all Consolidated Entities
during the period plus rent and operating lease expense incurred in the same
such period. “Funded Debt” with respect to any Person, without duplication, (a)
all Indebtedness for borrowed money and (b) all Indebtedness evidenced by notes,
bonds, debentures or similar instruments, or upon which interest payments are
customarily made, in each case, that by its terms matures more than one (1) year
from, or is directly or indirectly renewable or extendible at such Person's
option under a revolving credit or similar agreement obligating the lender or
lenders to extend credit over a period of more than one (1) year from, the date
of creation thereof, and

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{N0109914 } 5 6035818 specifically including, without limitation, capitalized
lease obligations, current maturities of long-term debt, revolving credit and
short-term debt extendible beyond one (1) year at the option of the debtor, and
also including, in the case of the Borrower, the Obligations and, without
duplication, Guaranteed Obligations in respect of Funded Debt of other Persons.
“Funded Indebtedness to Adjusted EBITDA” means the ratio of (a) indebtedness (i)
in respect of money borrowed or (ii) evidenced by a note, debenture (excluding
subordinated) or other like written obligation to pay money, or (iii) in respect
of rent or hire of property under leases or lease arrangements which under
generally accepted accounting principle are required to be capitalized, or (iv)
in respect of obligations under conditional sales or other title retention
agreements to (b) EBITDA. “GAAP” means generally accepted accounting principles
in the United States set forth in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public
Accountants and statements and pronouncements of the Financial Accounting
Standards Board or such other principles as may be approved by a significant
segment of the accounting profession in the United States, that are applicable
to the circumstances as of the date of determination, consistently applied.
“Governmental Authority” means the government of the United States or any other
nation, or of any political subdivision thereof, whether state or local, and any
agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative powers or functions of or pertaining to government (including any
supra-national bodies such as the European Union or the European Central Bank).
“Guarantee” means, as to any Person (a) any obligation, contingent or otherwise,
of such Person guaranteeing or having the economic effect of guaranteeing any
Indebtedness or other obligation payable or performable by another Person (the
“primary obligor”) in any manner, whether directly or indirectly, and including
any obligation of such Person, direct or indirect, (i) to purchase or pay (or
advance or supply funds for the purchase or payment of) such Indebtedness or
other obligation, (ii) to purchase or lease property, securities or services for
the purpose of assuring the obligee in respect of such Indebtedness or other
obligation of the payment or performance of such Indebtedness or other
obligation, (iii) to maintain working capital, equity capital or any other
financial statement condition or liquidity or level of income or cash flow of
the primary obligor so as to enable the primary obligor to pay such Indebtedness
or other obligation, or (iv) entered into for the purpose of assuring in any
other manner the obligee in respect of such Indebtedness or other obligation of
the payment or performance thereof or to protect such obligee against loss in
respect thereof (in whole or in part), or (b) any Lien on any assets of such
Person securing any Indebtedness or other obligation of any other Person,
whether or not such Indebtedness or other obligation is assumed by such Person
(or any right, contingent or otherwise, of any holder of such Indebtedness to
obtain any such Lien). The amount of any Guarantee shall be deemed to be an
amount equal to the stated or determinable amount of the related primary
obligation, or portion thereof, in respect of which such Guarantee is made or,
if not stated or determinable, the maximum reasonably anticipated liability in
respect thereof as determined by the guaranteeing Person in good faith. The term
“Guarantee” as a verb has a corresponding meaning.

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{N0109914 } 6 6035818 “Guaranteed Obligations” means as to any Person, without
duplication, any obligation of such Person guaranteeing, providing comfort or
otherwise supporting any Indebtedness, lease, dividend, or other obligation
(“primary obligation”) of any other Person (the “primary obligor”) in any
manner, including any obligation or arrangement of such Person to (a) purchase
or repurchase any such primary obligation, (b) advance or supply funds (i) for
the purchase or payment of any such primary obligation or (ii) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency or any balance sheet condition of the primary
obligor, (c) purchase property, securities or services primarily for the purpose
of assuring the owner of any such primary obligation of the ability of the
primary obligor to make payment of such primary obligation, (d) protect the
beneficiary of such arrangement from loss (other than product warranties given
in the ordinary course of business) or (e) indemnify the owner of such primary
obligation against loss in respect thereof; provided that the term Guaranteed
Obligations shall not include endorsements for collection or deposit in the
ordinary course of business. The amount of any Guaranteed Obligations at any
time shall be deemed to be an amount equal to the lesser at such time of (x) the
stated or determinable amount of the primary obligation in respect of which such
Guaranteed Obligations is incurred and (y) the maximum amount for which such
Person may be liable pursuant to the terms of the instrument embodying such
Guaranteed Obligations, or, if not stated or determinable, the maximum
reasonably anticipated liability (assuming full performance) in respect thereof.
“Guarantor” means any Person that executes a Guarantee of the Obligations.
“Increment” shall mean any principal amount under the Loan bearing interest
under the Libor Rate or any substitute rate. “Indebtedness” means (i) all items
(except items of Capital Stock, of capital surplus, of general contingency
reserves or of retained earnings, deferred income taxes, and amount attributable
to minority interest if any) which in accordance with generally accepted
accounting principles would be included in determining total liabilities on a
consolidated basis (if Borrower should have a subsidiary) as shown on the
liability side of a balance sheet as at the date as of which indebtedness is to
be determined, (ii) all indebtedness secured by any mortgage, pledge, lien or
conditional sale or other title retention agreement to which any property or
asset owned or held is subject, whether or not the indebtedness secured thereby
shall have been assumed (excluding non- capitalized leases which may amount to
title retention agreements but including capitalized leases), and (iii) all
indebtedness of others which Borrower or any Subsidiary has directly or
indirectly guaranteed, endorse (otherwise than for collection or deposit in the
ordinary course of business), discounted or sold with recourse or agreed
(contingently or otherwise) to purchase or repurchase or otherwise acquire, or
in sold with recourse or agreed (contingently or otherwise) to purchase or
repurchase or otherwise acquire, or in respect of which Borrower or any
Subsidiary has agreed to apply or advance funds (whether by way of loan, stock
purchase, capital contribution or otherwise) or otherwise to become directly or
indirectly liable. For all purposes hereof, the Indebtedness of any Person shall
include the Indebtedness of any partnership or joint venture (other than a joint
venture that is itself a corporation or limited liability company) in which such
Person is a general partner or a joint venturer, unless such Indebtedness is
expressly made non-recourse to such Person. The amount of any net obligation
under any Swap Contract on any date shall be deemed to be the Swap Termination
Value thereof

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{N0109914 } 7 6035818 as of such date. The amount of any capital lease or
Synthetic Lease Obligation as of any date shall be deemed to be the amount of
Attributable Indebtedness in respect thereof as of such date. “Indemnified
Taxes” means Taxes other than Excluded Taxes. “Interest Payment Date” means the
1st day of each month, beginning June 1, 2016, and provided further that, in
addition to the foregoing, each of (x) the date upon which each of the Revolving
Loan Commitment and the Term Loan Commitment have been terminated and the Loans
have been paid in full and (y) the Term Loan Maturity Date and the Revolving
Line of Credit Maturity Date, shall be deemed to be an “Interest Payment Date”
with respect to any interest (including interest accruing at the Default Rate)
that has then accrued under this Agreement. “Interest Period” means with respect
to any LIBOR Rate Principal, the period commencing on the date such LIBOR Rate
Principal is disbursed or on any subsequent Interest Rate Determination Date and
ending on last day of each calendar month thereafter. “Interest Rate
Determination Date” shall mean the date that the Loan is funded and the first
day of each calendar month thereafter, beginning June 1, 2016. “Investment”
means, as to any Person, any direct or indirect acquisition or investment by
such Person, whether by means of (a) the purchase or other acquisition of
Capital Stock or other securities of another Person, (b) a loan, advance or
capital contribution to, Guarantee or assumption of Indebtedness of, or purchase
or other acquisition of any other debt or equity participation or interest in,
another Person, including any partnership or joint venture interest in such
other Person and any arrangement pursuant to which the investor Guarantees
Indebtedness of such other Person, or (c) the purchase or other acquisition (in
one transaction or a series of transactions) of assets of another Person that
constitute a business unit. For purposes of covenant compliance, the amount of
any Investment shall be the amount actually invested, without adjustment for
subsequent increases or decreases in the value of such Investment. “IRS” means
the United States Internal Revenue Service. “Laws” means, collectively, all
international, foreign, Federal, state and local statutes, treaties, rules,
guidelines, regulations, ordinances, codes and administrative or judicial
precedents or authorities, including the interpretation or administration
thereof by any Governmental Authority charged with the enforcement,
interpretation or administration thereof, and all applicable administrative
orders, directed duties, requests, licenses, authorizations and permits of, and
agreements with, any Governmental Authority, in each case whether or not having
the force of law. “Lending Office” means, as to Bank, the office of Bank in
Atlanta, Georgia. “Letter of Credit Commitment” shall mean the obligation of the
Bank to issue Letters of Credit in an aggregate face amount not to exceed One
Million Dollars ($1,000,000.00) outstanding at any time as a sublimit under the
Revolving Line of Credit Commitment, as such obligations may be reduced from
time to time pursuant to the terms hereof.

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{N0109914 } 8 6035818 “Letter of Credit Obligations” shall mean, at any time,
the sum of (a) an amount equal to the aggregate undrawn and unexpired amount of
the then outstanding Letters of Credit (including the amount to which any such
Letter of Credit can be reinstated pursuant to the terms hereof); and (b) an
amount equal to the aggregate, but unreimbursed, drawings on any Letters of
Credit. “Letter of Credit Reserve Account” shall mean any account maintained by
the Bank, the proceeds of which shall be held by Bank as cash collateral for any
Letter of Credit repayment obligations. “Letters of Credit” shall mean,
collectively, standby Letters of Credit and commercial Letters of Credit issued
by the Bank on behalf of the Borrower or its Subsidiaries from time to time in
accordance with the terms hereof. “LIBOR Business Day” means a Business Day
which is also a London Banking Day. “LIBOR Rate” is, as of any date of
determination in accordance with this Agreement, the rate of interest fixed by
ICE Benchmark Administration Limited (or any successor thereto, or replacement
thereof, approved by Bank, each an “Alternate LIBOR Source”) at approximately
11:00 a.m., London, England time (or the relevant time established by ICE
Benchmark Administration Limited, an Alternate LIBOR Source, or Bank, as
applicable), two (2) Business Days prior to such date of determination, relating
to quotations for the one month London InterBank Offered Rates on U.S. Dollar
deposits, as displayed by Bloomberg LP (or any successor thereto, or replacement
thereof, as approved by Bank, each an “Approved Bloomberg Successor”), or, if no
longer displayed by Bloomberg LP (or any Approved Bloomberg Successor), such
rate as shall be determined in good faith by Bank from such sources as it shall
determine to be comparable to Bloomberg LP (or any Approved Bloomberg
Successor), all as determined by Bank in accordance with this Note and Bank’s
loan systems and procedures periodically in effect. Notwithstanding anything to
the contrary contained herein, in no event shall the LIBOR Rate be less than 0%
as of any date (the “LIBOR Rate Minimum”); provided that, at any time during
which a Swap Contract with Bank is then in effect with respect to all or a
portion of the Obligations, the LIBOR Rate Minimum, the Rounding Adjustment and
the Adjustment Protocol (as defined below) shall all be disregarded and no
longer of any force and effect with respect to such portion of the Obligations
subject to such Swap Contract. Each determination by Bank of the LIBOR Rate
shall be binding and conclusive in the absence of manifest error. The rate shall
be adjusted on the first Interest Rate Determination Date and each subsequent
Interest Rate Determination Date thereafter (the “Adjustment Protocol”). For
purposes herein, the Libor Rate shall never be deemed to be below 0.00%
regardless of the actual rate reported by the Bloomberg reporting service, or
such similar service selected by the Bank. “LIBOR Rate Increment” means an
Increment under the Loan that bears interest at a rate based on the LIBOR Rate.
“LIBOR Rate Principal” means any portion of the Principal Debt which bears
interest at an applicable LIBOR Rate at the time in question.

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{N0109914 } 9 6035818 “Lien” means any mortgage, pledge, hypothecation,
assignment, deposit arrangement, encumbrance, lien (statutory or other), charge,
or preference, priority or other security interest or preferential arrangement
in the nature of a security interest of any kind or nature whatsoever (including
any conditional sale or other title retention agreement, any easement, right of
way or other encumbrance on title to real property, and any financing lease
having substantially the same economic effect as any of the foregoing). “Loan”
means the Term Loan or the Revolving Line of Credit Loan, as the case may be,
made by Bank to Borrower pursuant to Section 2 in an amount not to exceed the
Term Loan Commitment and the Revolving Loan Commitment. Collectively the Term
Loan and the Revolving Line of Credit Loan are referred to as the “Loans.” “Loan
Documents” means this Agreement and each Collateral Document. “London Banking
Day” means a day on which banks in London are open for business and dealing in
offshore dollars. “Material Adverse Effect” means (a) a material adverse change
in, or a material adverse effect upon, the operations, business, properties,
liabilities (actual or contingent), condition (financial or otherwise) of
Borrower and any Subsidiaries taken as a whole; (b) a material and sustained
impairment of the ability of Borrower to perform its material obligations under
any Loan Documents; or (c) a material adverse effect upon the legality,
validity, binding effect or enforceability against Borrower of any material
provisions of the Loan Documents. “Note” means collectively, the promissory
notes evidencing the Term Loan and the Revolving Line of Credit Loan.
“Obligations” means all advances to, and debts, liabilities, obligations,
reimbursement obligation or indemnity of the Borrower on account of Letters of
Credit, ACH, payment-cards, covenants and duties of Borrower to Bank, whether
arising under any Loan Document or otherwise with respect to the Loan, any Swap
Contract, or any other contract, agreement, instrument or other document,
whether direct or indirect (including those acquired by assumption), absolute or
contingent, due or to become due, now existing or hereafter arising and
including interest and fees that accrue after the commencement by or against
Borrower or any Affiliate thereof of any proceeding under any Debtor Relief Laws
naming such Person as the debtor in such proceeding, regardless of whether such
interest and fees are allowed claims in such proceeding. “Obligor” means for
purposes of this Agreement any Guarantors. “Organization Documents” means, (a)
with respect to any corporation, the certificate or articles of incorporation
and the bylaws (or equivalent or comparable constitutive documents with respect
to any non-U.S. jurisdiction); (b) with respect to any limited liability
company, the certificate or articles of formation or organization and operating
agreement; and (c) with respect to any partnership, joint venture, trust or
other form of business entity, the partnership, joint venture or other
applicable agreement of formation or organization and any agreement, instrument,
filing or notice with respect thereto filed in connection with its formation or
organization with the applicable Governmental Authority in the jurisdiction of
its formation or organization and, if applicable, any certificate or articles of
formation or organization of such entity.

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{N0109914 } 10 6035818 “Other Taxes” means all present or future stamp,
intangible or documentary taxes or any other excise or property taxes, charges
or similar levies arising from any payment made hereunder or under any other
Loan Document or from the execution, delivery or enforcement of, or otherwise
with respect to, this Agreement or any other Loan Document. Other Taxes shall
not include Excluded Taxes. “Permitted Liens” means (i) liens for taxes not yet
due and payable; (ii) landlords’, carriers', warehousemen's, mechanics',
materialmen's, repairmen's or other like liens arising in the ordinary course of
business, payment for which is not more than thirty (30) days past due or which
are being contested in good faith and by appropriate proceedings; (iii) pledges
or deposits in connection with worker's compensation, unemployment insurance and
other social security legislation; (iv) deposits to secure the performance of
utilities, lease, statutory obligations and surety and appeal bonds, bids,
tenders, contracts (other than contracts relating to Indebtedness) and other
obligations of a like nature incurred in the ordinary course of business; (v)
bankers' liens, rights of setoff and similar liens arising by statute or under
customary terms regarding depository relationships on deposits held by financial
institutions with whom either Borrower has a banker-customer relationship; (vi)
typical restrictions imposed by licenses and leases of software (including
location and transfer restrictions); (vii) judgment liens in respect of
judgments that do not constitute an Event of Default; (viii) liens in favor of
Bank, (ix) easements, rights of way, zoning restrictions, minor defects and
irregularities of title and other charges or encumbrances with respect to real
property, which in each case do not interfere in any material respect with the
conduct of the Borrower’s or any Subsidiary’s business, (x) rights of setoff
included in commercial contracts, (xi) other liens incidental to the conduct of
the Borrower’s and its Subsidiaries’ business or the ownership of its property
and assets which were not incurred in connection with the borrowing of money or
obtaining of advances or credit, and which do not in the aggregate materially
detract from the Bank’s rights to the Collateral or the value of the Borrower’s
and its Subsidiaries’ property or assets; (xii) liens on assets purchased,
leased or otherwise acquired, or reconditioned or improved, with Indebtedness,
including capital lease obligations, and any renewals or extensions thereof, so
long as the amount secured is not increased, and (xiii) those liens, if any, set
forth and described on Exhibit B, and any renewals or extensions thereof, so
long as the property covered by such liens is not expanded, and the amount
secured is not increased. “Person” means any natural person, corporation,
limited liability company, trust, joint venture, association, company,
partnership, Governmental Authority or other entity. “Pledge Agreement” means a
Pledge Agreement executed by the Company pledging in favor of Bank the Capital
Stock in either a Subsidiary Borrower or any other Subsidiary. “Prime Rate”
means the floating rate of interest established from time to time by Bank at its
principal office as its “Prime Rate”, whether or not Bank shall at times lend to
borrowers at lower rates of interest. “Principal Debt” means the aggregate
unpaid principal balance on the Loans per the terms of this Agreement and
related Loan Documents at the time in question. “Revolving Line of Credit
Commitment” means $10,000,000.00.

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{N0109914 } 11 6035818 “Revolving Line of Credit Loan” means the Loan provided
for in Section 2.3. “Revolving Line of Credit Maturity Date” means May 1, 2018.
“Subordination Agreement” means that certain Subordination Agreement dated of
the date hereof among Bank, Company, Wynnefield Partners Small Cap Value, LP,
Wynnefield Partners Small Cap Value, LP I and Wynnefield Small Cap Value
Offshore Fund, Ltd. “Subordinated Liabilities” means liabilities subordinated to
Borrower's obligations to Bank in a manner acceptable to Bank in its sole
discretion. “Subsidiary” of a Person means a corporation, partnership, joint
venture, limited liability company or other business entity of which a majority
of the shares of securities or other interests having ordinary voting power for
the election of directors or other governing body (other than securities or
interests having such power only by reason of the happening of a contingency)
are at the time beneficially owned, or the management of which is otherwise
controlled, directly, or indirectly through one or more intermediaries, or both,
by such Person. Unless otherwise specified, all references herein to a
“Subsidiary” or to “Subsidiaries” shall refer to a Subsidiary or Subsidiaries of
Borrower. “Swap Contract” means (a) any and all rate swap transactions, basis
swaps, credit derivative transactions, forward rate transactions, commodity
swaps, commodity options, forward commodity contracts, equity or equity index
swaps or options, bond or bond price or bond index swaps or options or forward
bond or forward bond price or forward bond index transactions, interest rate
options, forward foreign exchange transactions, cap transactions, floor
transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar
transactions or any combination of any of the foregoing (including any options
to enter into any of the foregoing), whether or not any such transaction is
governed by or subject to any master agreement, and (b) any and all transactions
of any kind, and the related confirmations, which are subject to the terms and
conditions of, or governed by, any form of master agreement published by the
International Swaps and Derivatives Association, Inc., any International Foreign
Exchange Master Agreement, or any other master agreement (any such master
agreement, together with any related schedules, a “Master Agreement”), including
any such obligations or liabilities under any Master Agreement. “Swap
Termination Value” means, in respect of any one or more Swap Contracts, after
taking into account the effect of any legally enforceable netting agreement
relating to such Swap Contracts, (a) for any date on or after the date such Swap
Contracts have been closed out and termination value(s) determined in accordance
therewith, such termination value(s), and (b) for any date prior to the date
referenced in clause (a), the amount(s) determined as the mark-to-market
value(s) for such Swap Contracts, as determined based upon one or more
mid-market or other readily available quotations provided by any recognized
dealer in such Swap Contracts (which may include a Bank or any Affiliate of the
Bank). “Synthetic Lease Obligation” means the monetary obligation of a Person
under (a) a so- called synthetic, off-balance sheet or tax retention lease, or
(b) an agreement for the use or possession of property creating obligations that
do not appear on the balance sheet of such Person

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{N0109914 } 12 6035818 but which, upon the insolvency or bankruptcy of such
Person, would be characterized as the indebtedness of such Person (without
regard to accounting treatment). “Taxes” means all present or future taxes,
levies, imposts, duties, deductions, withholdings, assessments, fees or other
charges imposed by any Governmental Authority, including any interest, additions
to tax or penalties applicable thereto. “Term Loan Commitment” means
$25,000,000. “Term Loan” means the Loan provided for in Section 2.1. “Term Loan
Maturity Date” shall mean May 1, 2021. “United States” and “U.S.” mean the
United States of America. “Working Capital” means as of the date of the
determination, current assets as of such date minus current liabilities as of
such date calculated in accordance with GAAP. “Wynnefield Subordinated Notes”
means Indebtedness in an amount not to exceed $2,500,000.00 owing by the Company
to Wynnefield Partners Small Cap Value, LP, Wynnefield Partners Small Cap Value,
LP I, Wynnefield Small Cap Value Offshore Fund, Ltd or any other affiliated fund
controlled by Wynnefield Capital, Inc. 1.2 Other Interpretive Provisions. With
reference to this Agreement and each other Loan Document, unless otherwise
specified herein or in such other Loan Document (a) The definitions of terms
herein shall apply equally to the singular and plural forms of the terms
defined. Whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms. The words “include,”
“includes” and “including” shall be deemed to be followed by the phrase “without
limitation.” The word “will” shall be construed to have the same meaning and
effect as the word “shall.” Unless the context requires otherwise, (i) any
definition of or reference to any agreement, instrument or other document
(including any Organization Document) shall be construed as referring to such
agreement, instrument or other document as from time to time amended,
supplemented or otherwise modified (subject to any restrictions on such
amendments, supplements or modifications set forth herein or in any other Loan
Document), (ii) any reference herein to any Person shall be construed to include
such Person's successors and assigns, (iii) the words “herein,” “hereof” and
“hereunder,” and words of similar import when used in any Loan Document, shall
be construed to refer to such Loan Document in its entirety and not to any
particular provision thereof, (iv) all references in a Loan Document to
Articles, Sections, Exhibits and Schedules shall be construed to refer to
Articles and Sections of, and Exhibits and Schedules to, the Loan Document in
which such references appear, (v) any reference to any law shall include all
statutory and regulatory provisions consolidating, amending, replacing or
interpreting such

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{N0109914 } 13 6035818 law and any reference to any law or regulation shall,
unless otherwise specified, refer to such law or regulation as amended, modified
or supplemented from time to time, and (vi) the words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including but not limited to
cash, securities, accounts and contract rights. (b) In the computation of
periods of time from a specified date to a later specified date, the word “from”
means “from and including;” the words “to” and “until” each mean “to but
excluding;” and the word “through” means “to and including.” (c) Section
headings herein and in the other Loan Documents are included for convenience of
reference only and shall not affect the interpretation of this Agreement or any
other Loan Document. 1.3 Accounting Terms. (a) Generally. All accounting terms
not specifically or completely defined herein shall be construed in conformity
with, and all financial data (including financial ratios and other financial
calculations) required to be submitted pursuant to this Agreement shall be
prepared in conformity with, GAAP applied on a consistent basis, as in effect
from time to time, applied in a manner consistent with that used in preparing
the Borrower’s and its Consolidated Subsidiaries' audited financial statements,
except as otherwise specifically prescribed herein. (b) Changes in GAAP. If at
any time any change in GAAP would affect the computation of any financial ratio
or requirement set forth in any Loan Document, and either Bank or Borrower shall
request, Bank and Borrower shall negotiate in good faith to amend such ratio or
requirement to preserve the original intent thereof in light of such change in
GAAP; provided that, until so amended, (i) such ratio or requirement shall
continue to be computed in accordance with GAAP prior to such change therein and
(ii) Borrower shall provide Bank financial statements and other documents
required under this Agreement or as reasonably requested hereunder setting forth
a reconciliation between calculations of such ratio or requirement made before
and after giving effect to such change in GAAP. 1.4 Rounding. Any financial
ratios required to be maintained by Borrower pursuant to this Agreement shall be
calculated by dividing the appropriate component by the other component,
carrying the result to one place more than the number of places by which such
ratio is expressed herein and rounding the result up or down to the nearest
number (with a rounding-up if there is no nearest number). 1.5 Times of Day.
Unless otherwise specified, all references herein to times of day shall be
references to Eastern time (daylight or standard, as applicable). 2. LOAN AMOUNT
AND TERMS 2.1 Term Loan.

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{N0109914 } 14 6035818 (a) The Bank agrees to provide a term loan to the
Borrower in the amount of the Term Loan Commitment. (b) The Term Loan is
available in one disbursement from the Bank at closing. 2.2 Repayment of Term
Loan. (a) The Borrower will pay all accrued and unpaid interest on the
outstanding principal amount of the Term Loan on each Interest Payment Date
until payment in full of any principal outstanding under the Term Loan at the
then applicable rate per annum set forth in Section 2.7 hereof (plus any
interest at the Default Rate if applicable). (b) The principal amount of the
Term Loan shall be payable in fifty-nine (59) consecutive monthly installments
of $312,500.00 payable on the first (1st) day of each month, beginning on June
1, 2016, and all remaining principal shall be payable on the Term Loan Maturity
Date. 2.3 Revolving Line of Credit. (a) During the availability period described
below, the Bank will provide a line of credit to the Borrower in the amount of
the Revolving Line of Credit Commitment. (b) This is a revolving line of credit.
The Borrower will pay interest on the outstanding principal amount of the
Revolving Line of Credit Loan on each Interest Payment Date until the Revolving
Line of Credit Loan has been repaid in its entirety, at the applicable rate per
annum set forth in Section 2.6 hereof (plus any interest at the Default Rate if
applicable). The Borrower agrees not to permit the principal balance outstanding
to exceed the lesser of the Revolving Line of Credit Commitment or the amount
allowed under the Borrowing Base Agreement. If the Borrower exceeds this limit,
the Borrower will pay the excess to the Bank within one (1) Business Day
following the Bank's demand. (c) The Borrower will repay in full any principal,
interest or other charges outstanding under this facility no later than the
Revolving Line of Credit Maturity Date. 2.4 Availability Period. The Revolving
Line of Credit Loan is available between the date of this Agreement and the
Revolving Line of Credit Maturity Date or such earlier date as the availability
may terminate as provided for in this Agreement. 2.5 Letters of Credit. As part
of the Revolving Line of Credit Loan, Bank agrees to issue Letters of Credit for
the account of the Borrower in an aggregate amount not to exceed the Available
Letter of Credit Commitment determined immediately prior to giving effect to the
issuance thereof. Such aggregate amounts utilized hereunder shall at all times
reduce the amount otherwise available for Advances under the Revolving Line of
Credit Loan. All Letters of Credit shall be in form and substance reasonably

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{N0109914 } 15 6035818 acceptable to Bank in its sole discretion and shall be
subject to the terms and conditions of Bank's then current standard Application
and Letter of Credit Agreement (the “Letter of Credit Application”). Borrower
agrees to execute any further documentation in connection with any Letters of
Credit as Bank may reasonably request. In the event a drawing is paid on a
Letter of Credit, the Bank shall promptly notify Borrower thereof. 2.6 Borrowing
Base. The Revolving Line of Credit Loan is subject to a borrowing base in
accordance with the terms and conditions of a Borrowing Base Agreement executed
by the Borrower in favor of the Bank as required under this Agreement and
attached hereto as Exhibit A. The terms of the Borrowing Base (as defined in the
Borrowing Base Agreement) include requirements to maintain collateral with an
adequate loan value and grant to the Bank the right to issue a margin call in
the event such requirements are not met. Further, any failure to meet the
Borrowing Base requirements permits the Bank to refuse to make advances or other
financial accommodations. The inability of the Borrower to bring the Line of
Credit Loan into compliance with the Borrowing Base Agreement Failure may
constitute an Event of Default under this Agreement. 2.7 Interest Rate. 1. Term
Loan. The following interest rate shall be applicable for an Advance under the
Term Loan: (i) LIBOR Rate plus the Applicable Margin. 2. Revolving Line of
Credit Loan. The following interest rate shall be applicable to an Advance under
the Revolving Line of Credit Loan: (i) LIBOR Rate plus the Applicable Margin.
2.8 Optional Prepayment. Upon three (3) Business Days' prior written notice to
the Bank, the Borrower shall have the right to prepay in whole or in part the
Term Loan and/or the then outstanding Revolving Line of Credit Loans, in each
case without premium or penalty. No such prepayment shall eliminate or waive any
fees or costs associated with the termination of any Swap Contract which
Borrower may enter into with Bank or any other party. 2.9 Excess Cash Flow
Recapture Payment Within fifteen (15) days’ receipt of the annual financial
statement as required in Section 8.1(a) commencing with the year ending on
September 30, 2017, the Borrower shall pay to Bank an amount (the “Cash Flow
Recapture Payment”) equal to (a) 75% of the Excess Cash Flow of the Borrower for
each year in which the Funded Indebtedness to Adjusted EBITDA Ratio is greater
than or equal to 2.50:1.00, or (b) 50% of the Excess Cash Flow of the Borrower
for each fiscal year in which the Funded Indebtedness to Adjusted EBITDA Ratio
is less than 2.50:1.00 but

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{N0109914 } 16 6035818 greater than or equal to 2.00:1.00. Borrower will provide
a worksheet for Bank’s review and approval showing how the Cash Flow Recapture
Payment is calculated prior to the time any such payment is made. Borrower may
apply as an offset to any such Cash Flow Recapture Payment any voluntary
prepayments of principal made by Borrower on the Term Loan for such fiscal year.
The Cash Flow Recapture Payment shall be applied to the outstanding principal
balance of the Term Loan until the Term Loan shall have been paid in full. The
Cash Flow Recapture Payment is in addition to the monthly scheduled payments.
2.10 Interest Calculation. Except as otherwise stated in this Agreement, all
interest and fees, if any, will be computed on the basis of a 360-day year and
the actual number of days elapsed in the case of LIBOR Increments. Installments
of principal which are not paid when due under this Agreement shall continue to
bear interest until paid at the Default Rate. 2.11 Interest Limited. As used in
this Agreement the term “interest” does not include any fees (including, but not
limited to, any loan fee, periodic fee, unused commitment fee or waiver fee) or
other charges imposed on the Borrower in connection with the Indebtedness
evidenced by this Agreement, other than the interest described above. In no
event shall the amount or rate of interest due and payable under this Agreement
exceed the maximum amount or rate of interest allowed by applicable law and, in
the event any such excess payment is made by the Borrower or received by the
Bank, such excess sum shall be credited as a payment of principal (or if no
principal shall remain outstanding, shall be refunded to the Borrower). It is
the express intent hereof that the Borrower not pay and the Bank not receive,
directly or indirectly, interest in excess of that which may be lawfully paid
under applicable law including the usury laws in force in the State of Georgia.
2.12 Increased Costs. (a) Increased Costs Generally. If any Change in Law shall:
(i) impose, modify or deem applicable any reserve, special deposit, compulsory
loan, insurance charge or similar requirement against assets of, deposits with
or for the account of, or credit extended or participated in by, Bank (except
any reserve requirement reflected in the LIBOR Rate); (ii) subject Bank to any
tax of any kind whatsoever with respect to this Agreement, or change the basis
of taxation of payments to Bank in respect thereof (except for Indemnified Taxes
or Other Taxes covered by Section 2.12 and the imposition of, or any change in
the rate of, any Excluded Tax payable by Bank); or (iii) impose on Bank or the
London interbank market any other condition, cost or expense affecting this
Agreement or LIBOR Rate Increments; and the result of any of the foregoing shall
be to increase the cost to Bank of making or maintaining any LIBOR Rate
Increment, or to reduce the amount of any sum received or receivable by Bank
hereunder (whether of principal, interest or any other amount) then,

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{N0109914 } 17 6035818 upon request of Bank, Borrower will pay to such Bank,
such additional amount or amounts as will compensate Bank for such additional
costs incurred or reduction suffered. (b) Capital Requirements. If Bank
determines that any Change in Law affecting Bank or the Lending Office or the
Bank's holding company regarding capital requirements has or would have the
effect of reducing the rate of return on Bank's capital or on the capital of
Bank's holding company as a consequence of this Agreement to a level below that
which Bank or Bank's holding company could have achieved but for such Change in
Law (taking into consideration Bank's policies and the policies of Bank's
holding company with respect to capital adequacy), then from time to time
Borrower will pay to Bank, such additional amount or amounts as will compensate
Bank or Bank's holding company for any such reduction suffered. (c) Certificates
for Reimbursement. A certificate of Bank setting forth the amount or amounts
necessary to compensate Bank or its holding company, as the case may be, as
specified in subsection (a) or (b) of this Section and delivered to Borrower
shall be conclusive absent manifest error. Borrower shall pay Bank the amount
shown as due on any such certificate within 10 days after receipt thereof. (d)
Delay in Requests. Failure or delay on the part of Bank to demand compensation
pursuant to the foregoing provisions of this Section shall not constitute a
waiver of Bank's right to demand such compensation, provided that Borrower shall
not be required to compensate Bank pursuant to the foregoing provisions of this
Section for any increased costs incurred or reductions suffered more than six
months prior to the date that Bank notifies Borrower of the Change in Law giving
rise to such increased costs or reductions and of Bank's intention to claim
compensation therefor (except that, if the Change in Law giving rise to such
increased costs or reductions is retroactive, then the six-month period referred
to above shall be extended to include the period of retroactive effect thereof).
2.13 Inability to Determine Rates. If Bank, by written or telephonic notice,
notifies Borrower that: (a) any change in any law, regulation or official
directive, or in the interpretation thereof, by any governmental body charged
with the administration thereof, has made it unlawful for Bank to fund or
maintain its funding in Eurodollars of any portion of any advance subject to the
LIBOR Rate or otherwise give effect to Bank’s obligations as contemplated
hereby, or (b) (i) LIBOR deposits for periods of one month are not readily
available in the London Interbank Offered Rate Market, (ii) by reason of
circumstances affecting such market or other economic conditions, adequate and
reasonable methods do not exist for ascertaining the rate of interest applicable
to such deposits, or (iii) the LIBOR Rate as determined by Bank will not
adequately and fairly reflect the cost to Bank of making or maintaining advances
under this Note bearing interest with reference to the LIBOR Rate (including
inaccurate or inadequate reflection of actual costs resulting from the
calculation of rates by reporting sources), then, in any of such events: (A)
Bank’s obligations in respect of the LIBOR Rate shall terminate forthwith, (B)
the LIBOR Rate with respect to Bank shall forthwith cease to be in effect, (C)

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{N0109914 } 18 6035818 Borrower’s right to utilize LIBOR Rate index pricing as
set forth in this Note shall be terminated forthwith, and (D) amounts
outstanding hereunder shall, on and after such date, bear interest at a rate per
annum equal to: (1) the Prime Rate, or, if there is no such Prime Rate, then
such other rate as may be substituted by Bank for such Prime Rate. Each
determination by Bank of the Prime Rate shall be binding and conclusive in the
absence of manifest error. In the event of a change in the Prime Rate, the
interest rate accruing hereunder based upon the Prime Rate shall be changed
immediately with such change to be based upon such new Prime Rate. 2.14
Mitigation Obligations. If Bank requests compensation under Section 2.11, or
Borrower is required to pay any additional amount to Bank or any Governmental
Authority for the account of Bank pursuant to Section 2.11, or if Bank gives a
notice pursuant to Section 2.12(b), then Bank shall use reasonable efforts to
designate a different Lending Office for funding or booking its Loans hereunder
or to assign its rights and obligations hereunder to another of its offices,
branches or affiliates, if, in the reasonable determination of Bank, such
designation or assignment (i) would eliminate or reduce amounts payable under
Article 2, in the future, and (ii) in each case, would not subject Bank to any
unreimbursed cost or expense and would not otherwise be materially
disadvantageous to Bank. Borrower hereby agrees to pay all reasonable costs and
expenses incurred by Bank in connection with any such designation or assignment.
3. FEES AND EXPENSES 3.1 Fees. (a) Facility Fee. A facility fee equal to
$350,000.00 shall be paid to the Bank on the Closing Date. (b) Unused Commitment
Fee. Borrower agrees to pay a fee on any difference between the Revolving Loan
Commitment and the amount of credit it actually uses, determined by the average
of the daily amount of credit outstanding during the specified period. The fee
will be calculated at 0.30% per year. The fee is payable monthly on the Interest
Payment Date. 3.2 Expenses. The Borrower agrees to (a) reimburse and indemnify
the Bank for any reasonable expenses it incurs (i) in the preparation of this
Agreement and the Loan Documents and in connection with the continued
administration of the Loan Documents including any amendments, modifications,
consents and waivers, (ii) creating, perfecting and maintaining its Lien on the
Collateral pursuant to the Loan Documents, including filing and recording fees
and expenses, the costs of any bonds required to be posted in respect of future
filing and recording fees and expenses, title investigations, environmental
studies, appraisals and intangible taxes, and (iii) any matters contemplated by
or arising out of the Loan Documents, including Bank's customary field audit

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{N0109914 } 19 6035818 charges (but, provided that no Event of Default has
occurred and is continuing, only twice per year) and the reasonable fees,
expenses and disbursements of the Bank or any accountants or other experts
retained by the Bank (including any affiliate of Bank as shall be engaged for
such purpose) in connection with accounting and collateral audits or reviews of
the Borrower and its affairs; and (b) to promptly pay all fees, costs and
expenses (including attorneys' fees and expenses) incurred by Bank in connection
with any action to enforce any Loan Document or to collect any payments due from
Borrower. All fees, costs and expenses for which Borrower is responsible under
this Section 3.2 shall be deemed part of the Obligations when incurred, and
shall be payable within ten (10) days following demand by the Bank. 4.
COLLATERAL 4.1 Personal Property. The property listed below now owned or owned
in the future by the Borrower will secure the Borrower's obligations to the Bank
under this Agreement. The Collateral is further defined in security or pledge
agreements executed by the parties who own the Collateral. The Collateral shall
secure all other present and future obligations of the Borrower to the Bank. All
Collateral securing any other present or future obligations of the Borrower to
the Bank shall also secure this Agreement. (a) Inventory. (b) Accounts, chattel
paper, instruments, documents of title and letter of credit rights. (c)
Equipment including vehicles, trailers and any equipment or goods for which
certificates of title are issued. (d) All investment property and securities
entitlements. (e) Deposit accounts. (f) Intangibles including all patents,
patent rights, trademarks, and servicemarks (and goodwill appurtenant thereto)
trademark rights, trade names, servicemark rights, trade name rights,
copyrights, trade secret rights and all other intellectual property rights. (g)
Commercial tort claims. (h) The Capital Stock of the Subsidiary Borrowers. All
deposit accounts shall be treated as having been owned by one single entity for
purposes of setoff, paying overdrafts or other charges or expenses incurred in
any one deposit account.

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{N0109914 } 20 6035818 5. DISBURSEMENTS, PAYMENTS AND COSTS 5.1 Disbursements
and Payments. (a) Each payment by the Borrower will be made in U.S. Dollars and
immediately available funds by direct debit to a deposit account as specified
below or, for payments not required to be made by direct debit, by mail to the
address shown on the Borrower's statement or at one of the Bank's banking
centers in the United States. (b) Each disbursement by the Bank and each payment
by the Borrower will be evidenced by records kept by the Bank. In addition, the
Bank may, at its discretion, require the Borrower to sign one or more promissory
notes to evidence the Term Loan and the Revolving Line of Credit Loan. 5.2 Date
of Application of Payments. All payments and disbursements which would be due on
a day which is not a Business Day will be due on the next Business Day. All
payments received on a day which is not a Business Day will be applied to the
credit on the next Business Day. 6. CONDITIONS Before the Bank is required to
extend any credit to the Borrower under this Agreement, it must receive any
documents and other items it may reasonably require, in form and content
reasonably acceptable to the Bank, including any items specifically listed
below. 6.1 Loan Documents. The Bank (or its counsel) shall have received from
the Borrower (i) an original of this Agreement and all Loan Documents signed on
behalf of such party or (ii) written evidence satisfactory to the Bank (which
may include telecopy transmission of a signed signature page of this Agreement)
that such party has signed a counterpart of this Agreement. 6.2 Lien Searches.
Bank shall have received Uniform Commercial Code, tax and judgment lien search
reports with respect to Borrower indicating that there are no prior Liens on any
assets of Borrower other than Permitted Liens. 6.3 Authorizations. The Bank
shall have received such documents and certificates as the Bank or its counsel
may reasonably request relating to the organization, existence and good standing
of the Borrower, the authorization of the Borrower to enter into this Agreement
and any other legal matters relating to the Borrower or the Loan Documents, all
in form and substance satisfactory to the Bank and its counsel.

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{N0109914 } 21 6035818 6.4 Governing Documents. Such documents and
certifications as Bank may reasonably require to evidence that the Borrower is
duly organized or formed, and that the Borrower is validly existing, in good
standing and qualified to engage in business in each jurisdiction where its
ownership, lease or operation of properties or the conduct of its business
requires such qualification, except to the extent that failure to do so could
not reasonably be expected to have a Material Adverse Effect. 6.5 Collateral
Assignments and Related Documents. Signed original assignments, pledges,
financing statements or other documents as may be necessary for Bank to perfect
its security interest in the Collateral. 6.6 Perfection and Evidence of
Priority. Evidence that the security interests and liens in favor of the Bank
are valid, enforceable, properly perfected in a manner acceptable to the Bank
and prior to all others' rights and interests, except those the Bank consents to
in writing or permitted under Section 8.7. 6.7 Payment of Fees. Payment of all
fees and other amounts due and owing to the Bank, including without limitation
payment of all accrued and unpaid expenses incurred by the Bank as required by
Section 3.2. 6.8 Legal Opinion. A favorable written opinion from the Borrower's
legal counsel, addressed to Bank, with respect to due execution, authority,
enforceability of the Loan Documents, and such other matters as the Bank may
require. The legal counsel and the terms of the opinion must be reasonably
acceptable to the Bank. 6.9 Know Your Customer. The Bank shall have received all
documentation and other information required by regulatory authorities under
applicable “know your customer” and anti-money laundering rules and regulations,
including the Patriot Act. 6.10 Ownership Interests in Subsidiary Borrowers. As
of the date of this Agreement, Company owns all of the Capital Stock in the
Subsidiary Borrowers issued and outstanding, all of which are owned by the
Company free and clear of all encumbrances. The pledge, collateral assignment
and delivery of the Capital Stock of the Subsidiary Borrowers pursuant to a
Pledge Agreement create a valid first lien and first and senior security
interest in the Capital Stock of the Subsidiary Borrowers, which lien and
security interest are perfected. 6.11 Conditions to All Advances.

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{N0109914 } 22 6035818 The obligation of the Bank to make any Advance hereunder
is subject to the following conditions precedent: (a) The representations and
warranties of Borrower contained in Article 7 or any other Loan Document, or
which are contained in any document furnished at any time under or in connection
herewith or therewith, shall be true and correct in all material respects on and
as of the date of the Loan, except (i) to the extent that such representations
and warranties specifically refer to an earlier date, in which case they shall
be true and correct as of such earlier date and (ii) for changes therein
occurring after the date hereof which are not prohibited by the terms of this
Agreement. (b) No Default shall exist, or would result from such proposed
Advance or from the application of the proceeds thereof. 7. REPRESENTATIONS AND
WARRANTIES When the Borrower signs this Agreement, and until the Bank is repaid
in full, the Borrower makes the following representations and warranties. Each
request for an extension of credit constitutes a renewal of these
representations and warranties as of the date of the request: 7.1 Formation. (a)
The Company (i) is duly organized, validly existing and in good standing as a
corporation under the laws of the State of New Jersey, (ii) has all requisite
power and authority to carry on its business as now conducted and (iii) is duly
qualified to do business, and is in good standing, in each jurisdiction where
such qualification is required, except where a failure to be so qualified could
not reasonably be expected to result in a Material Adverse Effect. (b) DLH
Solutions, Inc. (i) is duly organized, validly existing and in good standing as
a corporation under the laws of the State of Georgia, (ii) has all requisite
power and authority to carry on its business as now conducted and (iii) is duly
qualified to do business, and is in good standing, in each jurisdiction where
such qualification is required, except where a failure to be so qualified could
not reasonably be expected to result in a Material Adverse Effect. (c) Danya
International, LLC (i) is duly organized, validly existing and in good standing
as a limited liability company under the laws of the State of Maryland, (ii) has
all requisite power and authority to carry on its business as now conducted and
(iii) is duly qualified to do business, and is be in good standing, in each
jurisdiction where such qualification is required, except where a failure to be
so qualified could not reasonably be expected to result in a Material Adverse
Effect. 7.2 Authorization.

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{N0109914 } 23 6035818 The execution, delivery and performance by the Borrower
of each of the Loan Documents to which it is a party are within the Borrower's
powers and have been duly authorized by all necessary corporate action in
compliance with the Organization Documents. 7.3 Enforceable Agreement. This
Agreement is a legal, valid and binding agreement of the Borrower, enforceable
against the Borrower in accordance with its terms, and any instrument or
agreement required hereunder, when executed and delivered, will be similarly
legal, valid, binding and enforceable subject to applicable bankruptcy,
insolvency, reorganization, moratorium or similar laws affecting creditors
rights generally and subject to general principles of equity, regardless of
whether considered in a proceeding in equity or at law. 7.4 No Conflicts. This
Agreement does not conflict with any law, agreement, or obligation by which the
Borrower is bound, except where such conflict could not reasonably be expected
to result in a Material Adverse Effect. 7.5 Financial Information. All financial
and other information that has been or will be supplied to the Bank fairly
presents the Borrower’s financial condition on a consolidated basis except that
prior to the Closing date all such information relating to the Subsidiary
Borrowers has been supplied on a consolidating basis. All pro forma or projected
financial statements that have been or will be supplied to the Bank on behalf of
the Borrower will be or has been prepared in good faith based on reasonable
assumptions. Since the date of the most recent financial statements of Borrower
provided to the Bank, there has been no Material Adverse Effect in the
consolidated business condition (financial or otherwise), operations or
properties of each of the Company and the Subsidiary Borrowers. 7.6 Lawsuits.
There is no lawsuit, tax claim or other dispute pending or threatened against
the Borrower for which there is a reasonable probability of an adverse result
which would be expected to have a Material Adverse Effect. 7.7 Collateral. All
Collateral required in this Agreement is owned by the grantor of the security
interest free of any title defects or any liens or interests of others, except
those which have been approved by the Bank in writing or permitted under Section
8.7. 7.8 Use of Proceeds. The proceeds of the Term Loan shall be used by the
Company to acquire all of the ownership interests in Subsidiary Borrower Danya
International, LLC. Up to $5,000,000.00 from the proceeds of the Revolving Line
of Credit Loan may also be used to fund the acquisition of the

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{N0109914 } 24 6035818 Subsidiary Borrower Danya International, LLC, and the
remainder shall be used for general working capital purposes. 7.9 Permits,
Franchises. The Borrower possesses all material permits, memberships,
franchises, contracts and licenses required and all material trademark rights,
trade name rights, patent rights, copyrights, and fictitious name rights
necessary to enable it to conduct the business in which it is now engaged. 7.10
Other Obligations. The Borrower is not in default on any Funded Debt having a
principal balance of $100,000.00 or more. 7.11 Tax Matters. As of the Closing
Date, the Borrower has no knowledge of any pending assessments or adjustments of
its income tax for any year and all material taxes due have been paid, except as
have been disclosed in writing to the Bank. 7.12 No Event of Default. There is
no Event of Default under this Agreement. 7.13 Margin Regulations, Public
Holding Company. (a) Borrower is not engaged and will not engage, principally or
as one of its important activities, in the business of purchasing or carrying
margin stock (within the meaning of Regulation U issued by the FRB), or
extending credit for the purpose of purchasing or carrying margin stock. (b)
None of Borrower, any Person Controlling Borrower, or any Subsidiary is required
to be registered as an “investment company” under the Investment Company Act of
1940. 7.14 Subsidiaries, Equity Investments. Schedule 7.14 hereto contains an
accurate list of all Subsidiaries of the Company as of the date of this
Agreement, setting forth their respective jurisdictions of incorporation or
organization and the percentage of their respective Capital Stock owned by the
Company or other Subsidiaries. All of the issued and outstanding shares of
Capital Stock of such Subsidiaries held by the Company have been duly authorized
and issued and are fully paid and non-assessable. As of the Closing Date,
Borrower has no equity investments in any other corporation or entity other than
those specifically disclosed on Schedule 8.7.

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{N0109914 } 25 6035818 7.15 Compliance with Laws. The Borrower is in compliance
with (a) all applicable laws (including without limitation all environmental
laws and all federal and state banking statutes) and all rules, regulations
(including without limitation all federal and state banking regulations) and
orders of any governmental authority, and (b) all indentures, agreements or
other instruments binding upon it or its properties, in each case except where
non-compliance, either singly or in the aggregate, could not reasonably be
expected to result in a Material Adverse Effect. 7.16 OFAC. The Borrower (i) is
not a person whose property or interest in property is blocked or subject to
blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001
Blocking Property and Prohibiting Transactions With Persons Who Commit, Threaten
to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)), (ii) does not
engage in any dealings or transactions prohibited by Section 2 of such executive
order, and is not otherwise associated with any such person in any manner
violative of Section 2, or (iii) is not a person on the list of Specially
Designated Nationals and Blocked Persons or subject to the limitations or
prohibitions under any other U.S. Department of Treasury's Office of Foreign
Assets Control regulation or executive order. 7.17 No Material Adverse Change
There has occurred no event, condition or other change since September 30, 2015
which has had, or which could reasonably be expected to have, a Material Adverse
Effect. 7.18 Patriot Act and Corrupt Practices Act. The Borrower is in
compliance, in all material respects, with (i) the Trading with the Enemy Act,
as amended, and each of the foreign assets control regulations of the United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) and any
other enabling legislation or executive order relating thereto and (ii) the
Uniting And Strengthening America By Providing Appropriate Tools Required To
Intercept And Obstruct Terrorism (USA Patriot Act of 2001). No part of the
proceeds of the Obligations will be used, directly or indirectly, for any
payments to any governmental official or employee, political party, official of
a political party, candidate for political office, or anyone else acting in an
official capacity, in order to obtain, retain or direct business or obtain any
improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended. 8. COVENANTS The Borrower agrees so long as credit is
available under this Agreement and until the Bank is repaid in full under the
Revolving Line of Credit Loan and the Term Loan and all Letters of Credit have
expired (other than in respect of indemnification obligations that survive
termination of this Agreement):

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{N0109914 } 26 6035818 8.1 Financial Information. To provide the following
financial information and statements in form and content reasonably acceptable
to the Bank, and such additional information as may be reasonably requested by
the Bank from time to time: (a) Within ninety (90) days of the fiscal year end
of Company, true and complete copies of the annual financial statements of
Company, true and complete copies of its balance sheet, income statement and
statement of cash flows for such fiscal year. Each such financial statement
shall (i) be prepared in accordance with GAAP consistently applied, (ii) be
certified by an authorized financial officer of Company. The statements shall be
audited (with an opinion satisfactory to Bank) by a certified public accountant.
The statements shall be prepared on a consolidated basis fairly showing the
financial condition of Borrower and its Subsidiaries. (b) Within forty-five (45)
days of the end of each fiscal quarter of Company (including the last quarter in
each fiscal year), true and complete copies of its unaudited balance sheet,
income statement and statement of cash flows for such quarter and fiscal year to
date period. Each such quarterly report shall (i) be prepared in accordance with
GAAP consistently applied (except for the omission of footnotes and subject to
year-end adjustment) (ii) be certified by its chief financial officer, and (iii)
show the comparison to the same period for the preceding year. The statements
may be internally prepared. The statements shall be prepared on a consolidated
and consolidating basis fairly showing the financial condition of Company and
its Subsidiaries. (c) Within thirty (30) days of the end of each month, true and
complete copies of the Company’s unaudited balance sheet, income statement. Each
such monthly report shall (i) be prepared in accordance with GAAP consistently
applied (except for the omission of footnotes and subject to year-end
adjustment) (ii) be certified by an authorized financial officer. The statements
may be internally prepared. The statements shall be prepared on a consolidated
and consolidating basis fairly showing the financial condition of Company and
its Subsidiaries. The monthly financials will not be available for the first 2
months after the fiscal year ends while the audited financial is being prepared.
(d) Together with the financial statements required under Section 8.1(a) and (b)
for the last day of each fiscal quarter of the Company, a compliance certificate
of the Company, signed by an authorized financial officer and setting forth (i)
the information and computations (in sufficient detail) to establish that the
Company is in compliance with the financial covenants set forth in Section 8 at
the end of the period covered by the financial statements then being furnished
and (ii) whether there existed as of the date of such financial statements and
whether there exists as of the date of the certificate, any Event of Default
under this Agreement and, if any such Event of Default exists, specifying the
nature thereof and the action the Company is taking and proposes to take with
respect thereto. The compliance certificate for the last fiscal quarter may be
submitted within one hundred and twenty (120) days of the end of such quarter.
(e) Within fifteen (15) days of each month end, the Borrowing Base Certificate.

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{N0109914 } 27 6035818 (f) Within fifteen (15) days of each month end, an aging
report of the Borrower’s accounts receivable. (g) Within fifteen (15) days of
each month end, an aging report of the Borrower’s accounts payable. (h) Together
with the financial statements required under Section 8.1(a) and (b) for the last
day of each fiscal quarter of the Borrower, a contract backlog report shall be
provided to the Bank of the form attached hereto as Exhibit C. The backlog
report shall include the following information: contract number, agency,
contracting officer, contract type, remaining funded and unfunded portions and
estimated profitability. (i) Such other information (including non-financial
information) as the Bank may from time to time reasonably request. 8.2 Fixed
Charge Coverage Ratio. The Company shall maintain on a consolidated basis a
Fixed Charge Coverage Ratio of at least 1.35:1.0 commencing with the quarter
ending June 30, 2016 and for all periods thereafter. This ratio will be
calculated as of the end of each fiscal quarter using the results of the
twelve-month period ending with that reporting period. The current portion of
long-term debt and the current portion of capitalized lease obligations will be
measured as of the last day of the calculation period. 8.3 Funded Indebtedness
to EBITDA. The Company shall maintain on a consolidated basis a ratio of Funded
Indebtedness to Adjusted EBITDA not exceeding the ratios indicated for each
period specified below: Period Ratios At Closing 2.99:1.0 The period ending June
30, 2016 and through September 30, 2016 3.5:1.0 The period ending December 31,
2016 and through September 30, 2017 3.25:1.0 The period ending September 30,
2017 and through June 30, 2018 3.00:1.0 The period ending September 30, 2018
2:50:1.0

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{N0109914 } 28 6035818 8.4 Other Indebtedness Not to have outstanding or incur
any direct or contingent Indebtedness (other than those previously disclosed in
writing to the Bank, or become liable for the liabilities of others, without the
Bank's written consent. This does not prohibit: (a) Acquiring goods, supplies,
or merchandise on normal trade credit. (b) Endorsing negotiable instruments
received in the usual course of business. (c) Obtaining surety bonds in the
usual course of business. (d) Liabilities, lines of credit and leases in
existence on the date of this Agreement disclosed on Schedule 8.4. (e)
Indebtedness (including capital lease obligations) incurred to finance or
refinance the cost of purchasing, reconditioning or improving an assets. (f)
Other Funded Indebtedness not to exceed in the aggregate $100,000.00 at any one
time. (g) Any Swap Contract which is entered into for purposes of hedging
interest rate risk related to the Indebtedness. (h) Normal accruals in the
ordinary course of business for liabilities not yet due and payable, or which
Borrower is contesting in good faith. (i) Customer deposits and other unsecured
current liabilities not the result of borrowing and not evidenced by any note or
other evidence of Indebtedness. (j) Indebtedness arising under the Wynnefield
Subordinated Notes which Indebtedness must be subordinated to payments of the
Loans, provided, however, that interest and principal due under the Wynnefield
Subordinated Notes may be paid in full (i) prior to maturity in the event the
Company engages in equity financing which results in the Company receiving funds
in an amount sufficient to pay all principal and outstanding interest due and
owing under the Wynnefield Subordinated Notes and (ii) in accordance with the
terms of the Subordination Agreement. 8.5 Other Liens. Not to create, assume, or
allow any security interest or lien (including judicial liens) on property the
Borrowers or any Subsidiary of the Borrowers now or later own, except for
Permitted Liens. 8.6 Maintenance of Assets. (a) Not to sell, assign, lease,
transfer or otherwise dispose of any part of the Borrower's business or the
Borrower's assets except in the ordinary course of business.

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{N0109914 } 29 6035818 (b) Not to sell, assign, lease, transfer or otherwise
dispose of any assets for less than fair market value, or enter into any
agreement to do so other than in the ordinary course of business. (c) Not to
enter into any sale and leaseback agreement covering any of its fixed assets.
(d) To maintain and preserve all material rights, privileges, and franchises the
Borrower now has, other than those which are not necessary for the conduct of
the Borrower's business or which as to which the failure to so maintain and
preserve would not reasonably be expected to result in a Material Adverse
Effect. Notwithstanding anything to the contrary in this Section 8.4, the
Company shall be permitted to complete the dissolution of those Subsidiaries
listed as Inactive Subsidiaries on Schedule 7.14. 8.7 Investments. Except with
respect to the acquisition of Danya International, LLC by the Company, not to
have any existing, or make any new, Investments in any individual or entity, or
make any capital contributions or other transfers of assets to any individual or
entity, or to make any Acquisition, except for: (a) Existing Investments as
shown on Schedule 8.7. (b) Investments in joint ventures engaged in businesses
that are the same as the business of the Borrower or are reasonably related or
complimentary thereto in an amount not to exceed in the aggregate $100,000.00;
(c) Investments in any of the following: (i) certificates of deposit; (ii) U.S.
treasury bills and other obligations of the federal government; (iii) readily
marketable securities (including commercial paper, but excluding restricted
stock and stock subject to the provisions of Rule 144 of the Securities and
Exchange Commission). (d) Obligations under Swap Contracts. (e) Investments
permitted by any other section hereunder. (f) Investments (including debt
obligations) received in connection with the bankruptcy or reorganization of
suppliers and customers and in settlement of delinquent obligations of, and
other disputes with, customer and suppliers arising in the ordinary course of
business. (g) Receivables owing to the Borrower created or acquired in the
ordinary course of business.

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{N0109914 } 30 6035818 (h) Compensation arrangements, including, without
limitation, stock option grants, bonus plans and individual bonuses, to
officers, directors, employees and consultants by Borrower in the ordinary
course of business. 8.8 Loans. Not to make any loans, advances or other
extensions of credit to any individual or entity, except for: (a) Existing
extensions of credit as shown on Schedule 8.8 (b) Extensions of credit in the
nature of accounts receivable or notes receivable arising from the sale or lease
of goods or services in the ordinary course of business to non-affiliated
entities. (c) Advances to employees provided that do not exceed $25,000.00 in
the aggregate at any one time. (d) Advances for travel and other expenses
incurred in the ordinary course of business. (e) Counterparty risk arising under
Swap Contracts to the extent allowed elsewhere under this Agreement. 8.9
Additional Negative Covenants. Not to, without the Bank's written consent: (a)
Enter into any consolidation, merger, or other combination, unless Borrower is
the surviving entity. (b) Engage in any business activities substantially
different from the Borrower's present business and other businesses reasonably
related or incidental thereto or which are reasonably extensions thereof. (c)
Liquidate or dissolve the Borrower's business. (d) Voluntarily suspend its
business for more than seven (7) days. 8.10 Notices to Bank. To promptly notify
the Bank in writing of: (a) Any threatened in writing, actual or pending
litigation against the Borrower (not covered by insurance) claiming damages in
excess of $100,000.00. (b) Any substantial dispute between any Governmental
Authority and the Borrower which could reasonably be expected to have a Material
Adverse Effect.

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{N0109914 } 31 6035818 (c) Any Event of Default or Default under this Agreement.
(d) Occurrence of any Material Adverse Effect. (e) Any change in the Borrower's
name, legal structure, place of business, or chief executive office if the
Borrower has more than one place of business. (f) Any actual contingent
liabilities of the Borrower not otherwise permitted hereunder, and any such
contingent liabilities which are reasonably foreseeable, where such liabilities
are in excess of $100,000.00 in the aggregate. (g) Any change in the current CEO
and CFO of the Company. (h) Each dissolution of an Inactive Subsidiary of
Borrower within three (3) Business Days thereof. 8.11 Insurance. To maintain
insurance with carriers reasonably satisfactory to the Bank and covering such
risks and in such amounts as is usual for the Borrower's business. Each policy
shall provide for at least thirty (30) days prior notice to the Bank of any
cancellation thereof ten (10) days in the case of non-payment). 8.12 Compliance
with Laws. To comply in all material respects with the laws (including any
fictitious or trade name statute and environmental laws), regulations, and
orders of any government body with authority over the Borrower's business except
where failure to comply would not reasonably be expected to have a Material
Adverse Effect. 8.13 Books and Records. To maintain adequate books and records
in accordance with GAAP and practices applied on a basis consistent with
preceding years. 8.14 Field Audits. To allow the Bank and its agents to visit
and inspect any of the Borrower's properties, to examine and make abstracts or
copies from any of its books and records, to conduct a collateral audit and
analysis of its inventories and accounts receivable and to discuss its affairs,
finances and accounts with its officers, employees and, in the presence of an
officer of Borrower, all at such reasonable times and as often as may reasonably
be desired, all at Borrower’s expense provided that the Borrower shall not be
obligated to reimburse the Bank for more than two such audits and analyses
during any twelve month period.

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{N0109914 } 32 6035818 8.15 Perfection of Liens. To help the Bank perfect and
protect its security interests and liens, and reimburse it for related costs it
incurs to protect its security interests and liens. 8.16 ERISA Plans. (a) Each
Plan (other than a multiemployer plan) is in compliance in all material respects
with the applicable provisions of ERISA, the Code and other federal or state
law. Each Plan has received a favorable determination letter from the IRS, may
rely on a favorable opinion letter for a prototype or volume submitter plan, or
the time for obtaining such a letter has not expired, and to the best knowledge
of the Borrower, nothing has occurred which would cause the loss of such
tax-qualification. The Borrower has fulfilled its obligations, if any, under the
minimum funding standards of ERISA and the Code with respect to each Plan, and
has not incurred any liability with respect to any Plan. (b) There are no
claims, lawsuits or actions (including by any Governmental Authority), and there
has been no prohibited transaction or violation of the fiduciary responsibility
rules, with respect to any Plan which has resulted or would reasonably be
expected to result in a Material Adverse Effect. (c) With respect to any Plan
subject to Title IV of ERISA: (i) No reportable event has occurred under Section
4043(c) of ERISA for which the PBGC requires 30-day notice. (ii) No action by
the Borrower or any ERISA Affiliate to terminate any Plan or to withdraw from
any Plan that is a multiemployer plan has been taken and no notice of intent to
terminate a Plan has been filed under Section 4041 of ERISA. (iii) No
termination proceeding has been commenced with respect to a Plan under Section
4042 of ERISA, and, to the Borrower’s knowledge, no event has occurred or
condition exists which might constitute grounds for the commencement of such a
proceeding. (d) The following terms have the meanings indicated for purposes of
this Agreement: (i) “Code” means the Internal Revenue Code of 1986, as amended
from time to time. (ii) “ERISA” means the Employee Retirement Income Security
Act of 1974, as amended from time to time. (iii) “ERISA Affiliate” means any
trade or business (whether or not incorporated) under common control with the
Borrower within the meaning of Section 414(b) or (c) of the Code. (iv) “PBGC”
means the Pension Benefit Guaranty Corporation.

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{N0109914 } 33 6035818 (v) “Plan” means a pension, profit-sharing, or stock
bonus plan intended to qualify under Section 401(a) of the Code, maintained or
contributed to by the Borrower or any ERISA Affiliate, including any
multiemployer plan within the meaning of Section 4001(a)(3) of ERISA. 8.17
Maintenance of Properties. The Borrower will, and will cause each of its
Subsidiaries to, (i) keep and maintain all property material to the conduct of
its business in good working order and condition, subject to ordinary wear and
tear, except where the failure to do so, either individually or in the
aggregate, would not reasonably be expected to result in a Material Adverse
Effect. 8.18 Assignment of Claims Act. The Borrower hereby covenants and agrees
that the Borrower will promptly, upon request by the Bank, comply with any and
all of the requirements of the Assignment of Claims Act (Title 31 Section 3727
and Title 41 Section 15 of the United States Code) attached hereto as Exhibit D,
where such statutes are applicable to any applicable accounts receivable
Collateral, and shall take all such other action as may be necessary to
facilitate the direct assignment to the Bank of the payments due or to become
due under such accounts receivable Collateral, and such further action as may be
necessary to facilitate the creation and perfection of the Bank’s security
interest in such payments. 8.19 Bank as Principal Depository. To maintain the
Bank as its principal depository bank, including for the maintenance of
business, cash management, operating and administrative deposit accounts. 8.20
Collections Account All proceeds of Borrower’s accounts receivables shall be
deposited into a Collections Account, and all automatic sweep arrangements of
the Collections Account shall be maintained until this Agreement is terminated.
Borrower agrees to maintain this account as a deposit-only account and as one on
which checks are not written. Funds from this account will swept daily into an
Operating Account maintained at the Bank (subject to a springing deposit account
control agreement). 8.21 Taxes and Assessments. The Borrower shall duly pay and
discharge, and shall cause each Subsidiary to duly pay and discharge, all taxes,
rates, assessments, fees, and governmental charges upon or against it or its
assets, in each case before the same become delinquent and before penalties
accrue thereon, unless and to the extent that (a) the same are being contested
in good faith and by appropriate proceedings which prevent enforcement of the
matter under contest and adequate reserves are provided therefore; or (b) such
unpaid taxes, rates, assessments, fees and governmental charges do not exceed
$25,000.00 in the aggregate at any one time. 8.22 Conduct of Business.

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{N0109914 } 34 6035818 Except for the Inactive Subsidiaries shown on Schedule
7.14, the Company will, and will cause each Subsidiary to, carry on and conduct
its business in substantially the same fields of enterprise as it is presently
conducted or fields related thereto or extensions thereof (taking the Company
and its Subsidiaries on a consolidated basis) and do all things necessary to
remain duly incorporated or organized, validly existing and (to the extent such
concept applies to such entity) in good standing as a domestic corporation,
partnership or limited liability company in its jurisdiction of incorporation or
organization, as the case may be, and maintain all requisite authority to
conduct its business in each jurisdiction in which its business is conducted,
unless the failure to do so could not reasonably be expected to have a Material
Adverse Effect. Borrower shall cause the Inactive Subsidiaries to be dissolved
no later than one hundred and eighty (180) days from the Closing Date, provided,
however, that Borrower may request the Bank to consent to an additional 60-day
extension to complete the dissolution of all remaining Inactive Subsidiaries
which consent shall not be unreasonably withheld.” 8.23 No Consumer Purpose. Not
to use this loan for personal, family, or household purposes. 9. DEFAULT AND
REMEDIES If any of the following events of default occurs and is continuing,
each an “Event of Default,” the Bank may do one or more of the following:
declare the Borrower in default, stop making any additional credit available to
the Borrower, stop issuing Letters of Credit and require the Borrower to repay
its entire debt immediately and without prior notice. If an event which, with
notice or the passage of time, will constitute an Event of Default has occurred
and is continuing, the Bank has no obligation to make advances, issue new
Letters of Credit or extend additional credit under this Agreement. In addition,
if any Event of Default occurs and is continuing, the Bank shall have all
rights, powers and remedies available under any instruments and agreements
required by or executed in connection with this Agreement, as well as all rights
and remedies available at law or in equity and all principal amounts due and
owing to Bank by Borrower shall at Bank’s option, accrue interest at the Default
Rate. If an Event of Default occurs under the paragraph entitled “Bankruptcy,”
below, with respect to the Borrower, then the entire debt outstanding under this
Agreement will automatically be due immediately. 9.1 Failure to Pay. The
Borrower fails to make a payment of principal under this Agreement when due, or
fails to make a payment of interest, any fee or other sum under this Agreement
within ten (10) days after the date when due. 9.2 Other Bank Agreements. The
Borrower or any Obligor shall fail to observe or perform any covenant or
agreement contained in this Agreement (other than those referred to in Section
9.1 above), and such failure shall remain

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{N0109914 } 35 6035818 unremedied for thirty (30) days after the earlier of (x)
any officer of the Borrower becomes aware of such failure, or (y) notice thereof
shall have been given to the Borrower by the Bank. 9.3 Cross-default. Any
default occurs under any agreement in connection with any Funded Debt of
Borrower having a principal balance of $250,000.00 or more if the default
consists of failing to make a payment when due or gives the other lender the
right to accelerate the obligation and it is not cured or waived within thirty
(30) days. 9.4 False Information. Any representation or warranty made or deemed
made by or on behalf of the Borrower in or in connection with this Agreement or
any other Loan Document and any amendments or modifications hereof or waivers
hereunder, or in any certificate, report, financial statement or other document
submitted to the Bank by the Borrower or any representative of the Borrower
pursuant to or in connection with this Agreement shall prove to be incorrect in
any material respect when made or deemed made. 9.5 Bankruptcy. The Borrower or
any Obligor, files a bankruptcy petition, an involuntary bankruptcy petition is
filed against any of the foregoing parties and is not dismissed within sixty
(60) days, or the Borrower or any Obligor makes a general assignment for the
benefit of creditors. 9.6 Receivers. A receiver or similar official is appointed
for a substantial portion of the Borrower's or any Obligor's business, or the
business is terminated, or, if any Obligor is anything other than a natural
person, such Obligor is liquidated or dissolved. 9.7 Judgments. Any final
judgments or arbitration awards are entered against the Borrower or any of its
Subsidiaries, in an amount of $250,000.00 or more that is not covered by
insurance and that remains outstanding for more than thirty (30) days without
being satisfied, stayed or bonded. 9.8 Corporate Existence. The Borrower shall
dissolve or otherwise cease to exist. 9.9 Default under Related Documents. Any
default occurs under any Loan Document and such failure shall remain unremedied
for thirty (30) days after the earlier of (i) any officer of Borrower becomes
aware of such failure, or (ii) notice thereof shall have been given to the
Borrower by Bank. 9.10 Security Interest.

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{N0109914 } 36 6035818 Except as otherwise permitted by the terms of the Loan
Agreement, or except to the extent the Bank agrees or elects not to perfect its
security interest, should the Bank cease to have an enforceable first priority
Lien on any property which is subject to a security interest created by any Loan
Document. 9.11 ERISA Plans. Any one or more of the following events occurs with
respect to a Plan of the Borrower subject to Title IV of ERISA, provided such
event or events would reasonably be expected, in the judgment of the Bank, to
subject the Borrower to any tax, penalty or liability (or any combination of the
foregoing) which, in the aggregate, could have a Material Adverse Effect: (a) A
reportable event shall occur under Section 4043(c) of ERISA with respect to a
Plan for which the PBGC has not waived the 30-day notice requirement. (b) Any
Plan termination (or commencement of proceedings to terminate a Plan) or the
full or partial withdrawal from a Plan that is a multiemployer plan within the
meaning of Section 4001(a)(3) of ERISA by the Borrower or any ERISA Affiliate.
9.12 Breach of Borrowing Base. If any of the credit covered by this Agreement is
subject to an agreement to maintain a borrowing base, the terms of such
agreement are breached and the Borrower fails to cure such breach by the
expiration of any applicable cure period. 9.13 Invalidity of Loan Documents In
each case, other than as expressly permitted hereunder or thereunder or due to
satisfaction in full of the Loan, any Loan Document or any provision thereof, at
any time after its execution and delivery and for any reason other than as
expressly permitted hereunder or thereunder or satisfaction in full of the Loan,
ceases to be in full force and effect; or Borrower contests in any manner the
validity or enforceability of any Loan Document or any provision thereof;
Borrower denies that it has any or further liability or obligation under any
Loan Document, or purports to revoke, terminate or rescind any Loan Document or
any provision thereof. 9.14 Change in Control The occurrence of a Change of
Control. 9.15 Suspension or Debarment Borrower is suspended or debarred by the
Suspension & Debarment Division of the U.S. General Services Administration,
U.S. Government, or otherwise prevented from renewing, soliciting or otherwise
conducting business with the Federal government directly or as an agent or
representative of other contractors or of participants in Federal assistance
programs.

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[ex103fifththirddlhdanyal041.jpg]
{N0109914 } 37 6035818 10. ENFORCING THIS AGREEMENT; MISCELLANEOUS 10.1 GAAP.
Except as otherwise stated in this Agreement, all financial information provided
to the Bank and all financial covenants will be made under GAAP, consistently
applied. 10.2 Georgia Law. This Agreement is governed by the laws of the State
of Georgia, except for conflict of laws provisions. 10.3 Successors and Assigns.
This Agreement is binding on the Borrower's and the Bank's successors and
assignees. The Borrower agrees that it may not assign this Agreement without the
Bank's prior consent. The Bank may, with the Borrower’s consent so long as there
exists no Event of Default (such consent not to be unreasonably withheld), sell
participations in or assign this loan, and may exchange information about the
Borrower (including, without limitation, any information regarding any hazardous
substances) with actual or potential participants or assignees. If a
participation is sold or the loan is assigned, the purchaser will have the right
of set-off against the Borrower. 10.4 Right of Setoff. In addition to any rights
now or hereafter granted under applicable law and not by way of limitation of
any such rights, the Bank shall have the right, at any time or from time to time
upon the occurrence and during the continuance of an Event of Default, without
prior notice to the Borrower, any such notice being expressly waived by the
Borrower to the extent permitted by applicable law, to set off and apply against
all deposits (general or special, time or demand, provisional or final) of the
Borrower at any time held or other obligations at any time owing by the Bank to
or for the credit or the account of the Borrower against any Indebtedness owed
by Borrower to Bank, irrespective of whether the Bank shall have made demand
hereunder and although such Indebtedness may be unmatured. The Bank agrees
promptly to notify the Borrower after any such set-off and any application made
by the Bank; provided, that the failure to give such notice shall not affect the
validity of such set-off and application. 10.5 Severability; Waivers. If any
part of this Agreement is not enforceable, the rest of the Agreement may be
enforced. The Bank retains all rights, even if it makes a loan after default. If
the Bank waives a default, it may enforce a later default. Any consent or waiver
under this Agreement must be in writing. 10.6 Attorneys' Fees. The Borrower
shall reimburse the Bank for any reasonable costs and attorneys' fees actually
incurred by the Bank in connection with the enforcement or preservation of any
rights or remedies

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[ex103fifththirddlhdanyal042.jpg]
{N0109914 } 38 6035818 under this Agreement and any other documents executed in
connection with this Agreement, and in connection with any amendment, waiver,
“workout” or restructuring under this Agreement. In the event of a lawsuit or
arbitration proceeding, the prevailing party is entitled to recover costs and
reasonable attorneys' fees incurred in connection with the lawsuit or
arbitration proceeding, as determined by the court or arbitrator. In the event
that any case is commenced by or against the Borrower under the Bankruptcy Code
(Title 11, United States Code) or any similar or successor statute, the Bank is
entitled to recover costs and reasonable attorneys' fees incurred by the Bank
related to the preservation, protection, or enforcement of any rights of the
Bank in such a case. 10.7 One Agreement. This Agreement and any related security
or other agreements required by this Agreement, collectively: (a) represent the
sum of the understandings and agreements between the Bank and the Borrower
concerning this credit; (b) replace any prior oral or written agreements between
the Bank and the Borrower concerning this credit; and (c) are intended by the
Bank and the Borrower as the final, complete and exclusive statement of the
terms agreed to by them. In the event of any conflict between this Agreement and
any other agreements required by this Agreement, this Agreement will prevail.
Any reference in any related document to a “promissory note” or a “note”
executed by the Borrower and dated as of the date of this Agreement shall be
deemed to refer to this Agreement, as now in effect or as hereafter amended,
renewed, or restated. 10.8 Indemnification. The Borrower will indemnify and hold
the Bank harmless from any loss, liability, damages, judgments, and costs of any
kind relating to or arising directly or indirectly out of (a) this Agreement or
any document required hereunder, (b) any credit extended or committed by the
Bank to the Borrower hereunder, and (c) any litigation or proceeding related to
or arising out of this Agreement, any such document, or any such credit but
excluding any loss, liability, damages, judgment and costs arising from the
gross negligence or willful misconduct of Bank. This indemnity includes but is
not limited to attorneys' fees actually incurred. This indemnity extends to the
Bank, its parent, subsidiaries and all of their directors, officers, employees,
agents, successors, attorneys, and assigns. This indemnity will survive
repayment of the Borrower's obligations to the Bank. All sums due to the Bank
hereunder shall be obligations of the Borrower, due and payable immediately upon
demand. 10.9 Notices. Unless otherwise provided in this Agreement or in another
agreement between the Bank and the Borrower, all notices required under this
Agreement shall be personally delivered or sent by first class mail, postage
prepaid, or by overnight courier, to the addresses on the signature page of this
Agreement, or sent by facsimile to the fax numbers listed on the signature page,
or to such other

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[ex103fifththirddlhdanyal043.jpg]
{N0109914 } 39 6035818 addresses as the Bank and the Borrower may specify from
time to time in writing. Notices and other communications shall be effective (i)
if mailed, upon the earlier of receipt or five (5) days after deposit in the
U.S. mail, first class, postage prepaid, (ii) if telecopied, when transmitted,
or (iii) if hand-delivered, by courier or otherwise (including telegram,
lettergram or mailgram), when delivered. 10.10 Further Assurances At any time,
and from time to time, upon request by Bank, Borrower will, at Borrower’s
expense, (a) correct any defect, error or omission which may be discovered in
the form or content of any of the Loan Documents, and (b) make, execute, deliver
and record, or cause to be made, executed, delivered and recorded, any and all
further instruments, certificates and other documents as may, in the opinion of
Bank, be necessary or desirable in order to complete, perfect or continue and
preserve the lien on the Collateral. Upon any failure by Borrower to do so, Bank
may make, execute and record any and all such instruments, certificates and
other documents for and in the name of Borrower, all at the sole expense of
Borrower, and Borrower hereby appoints Bank the agent and attorney-in-fact of
Borrower to do so, this appointment being coupled with an interest and being
irrevocable. Without limitation of the foregoing, Borrower irrevocably
authorizes Lender at any time and from time to time to file any initial
financing statements, amendments thereto and continuation statements deemed
necessary or desirable by Bank to establish or maintain the validity, perfection
and priority of the security interests granted in the Mortgage, and Borrower
ratifies any such filings made by Bank prior to the date hereof. In addition, at
any time, and from time to time, upon request by Bank, Borrower will, at
Borrower's expense, provide any and all further instruments, certificates and
other documents as may, in the opinion of Bank, be necessary or desirable in
order to verify Borrower's identity and background in a manner satisfactory to
Bank. 10.11 Headings. Article and paragraph headings are for reference only and
shall not affect the interpretation or meaning of any provisions of this
Agreement. 10.12 Patriot Act Notice. Bank hereby notifies the Borrower that,
pursuant to the requirements of the USA PATRIOT Act, Title III of Pub. L.
107-56, signed into law October 26, 2001 (the “Act”), Bank is required to
obtain, verify and record information that identifies the Borrower, which
information includes the name and address of the Borrower and other information
that will allow Bank, as applicable, to identify the Borrower in accordance with
the Act. 10.13 Counterparts. This Agreement may be executed in as many
counterparts as necessary or convenient, and by the different parties on
separate counterparts each of which, when so executed, shall be deemed an
original but all such counterparts shall constitute but one and the same
agreement. [Signatures appear on the next page]

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[ex103fifththirddlhdanyal044.jpg]
This Agreement is executed as of the date stated at the top of the first page.
Fifth Third Bank DLH Holdings Corp. By: By: __/s/ Kathryn JohnBull_____ Name:
Name: Kathryn JohnBull Title: Title: Chief Financial Officer Fifth Third Bank
DLH Holdings Corp. 3344 Peachtree Road, NE Suite 800 3565 Piedmont Road, NE
Atlanta, GA 30126 Bldg. 3, Suite 700 Atlanta, GA 30305 DLH Solutions, Inc. By:
__/s/ Kathryn JohnBull_____ Name: Kathryn JohnBull Title: Chief Financial
Officer 3565 Piedmont Road, NE Bldg. 3, Suite 700 Atlanta, GA 30305 Danya
International, LLC By: __/s/ Kathryn JohnBull_____ Name: Kathryn JohnBull Title:
Chief Financial Officer Danya International, LLC 8737 Colesville Road Suite 1100
Silver Spring, MD 20910

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[ex103fifththirddlhdanyal045.jpg]
Exhibit A Borrowing Base Agreement

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[ex103fifththirddlhdanyal046.jpg]
{N0109914 } 2 5421512 BORROWING BASE AGREEMENT This Borrowing Base Agreement
(this “Agreement”) dated as of May 2, 2016, is among Fifth Third Bank, an Ohio
banking corporation (the “Bank”) and DLH Holdings Corp., a New Jersey
corporation (the “Company”), DLH Solutions, Inc., a Georgia corporation, Danya
International, LLC, a Maryland limited liability company (the “Subsidiary
Borrowers” together with the Company, the “Borrower”). 1. Borrowing Base. The
aggregate outstanding principal amount of all amounts from time to time advanced
under the Revolving Line of Credit Loan pursuant to the terms of Section 2.4 of
the Loan Agreement dated May 2, 2016 between Bank and Borrower (as amended,
restated or modified, the "Loan Agreement") shall not exceed the Maximum Amount.
Any defined terms used but not otherwise defined herein shall have such meaning
ascribed to such terms in the Loan Agreement. This Agreement is subject to the
terms and conditions set forth in the Loan Agreement. "Maximum Amount" shall
mean the lesser of $10,000,000.00 or the Borrowing Base. The "Borrowing Base" at
any time, shall be equal to the sum of (i) 90% of Prime Government Receivables;
(ii) 80% of Commercial Accounts Receivable, and (iii) 50% of Unbilled
Receivables, which are to be billed within thirty (30) days less such
availability reserves applicable to the Borrower as the Lender deems
appropriate. "Commercial Receivables" means Eligible Account Receivables other
than Prime Government Receivables or Unbilled Receivables which have resulted
from an amount due owing from account debtors. "Prime Government Receivables"
means Eligible Accounts Receivables which have resulted from an amount due and
owing directly from the U.S. Government or any department or agency thereof.
"Unbilled Prime Government Receivables" means Eligible Prime Government Accounts
Receivables, notwithstanding their unbilled status which have resulted from
unbilled costs actually incurred and arising out of work actually performed by
the Borrower under written contracts with the U.S. Government which (i) have
been accepted by the U.S. Government and (ii) are properly billable to the U.S.
Government in accordance with the applicable contract “Eligible Accounts
Receivable” shall mean all Accounts Receivable of Borrower and any of its
Subsidiaries which have been created in the ordinary course of Borrower's or
such Subsidiary’s business and upon which Borrower's or such Subsidiary’s right
to receive payment is

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{N0109914 } 3 5421512 absolute and not contingent upon the fulfillment of any
condition whatsoever, and shall not include:  any account which remains unpaid
more than ninety (90) days past due from the date of the invoice or sixty (60)
days from the stated due date or which has been written off the books of the
Borrower or otherwise designated as uncollectible by Borrower (it being
understood that, in determining the aggregate amount from the same Customer that
is unpaid hereunder, there shall be excluded the amount of any net credit
balances relating to accounts due from such Customer which are unpaid more than
sixty (60) after the stated due date);  any account which represents an
obligation of a Customer which is not a resident of the United States or Canada
unless such account is supported by a letter of credit in form and substance
reasonably acceptable to Bank;  any account with respect to which there is
another contra account but only to the extent of the amount owed by Borrower to
the Customer;  any account which represents an obligation of any local, state
or federal governmental agency or entity, unless Borrower is not prohibited from
assigning the account and is able to does assign its right to payment of such
account to the Bank, in a manner reasonably satisfactory to Bank, so as to
comply with the Assignment of Claims Act of 1940, as amended;  any account
which arises from the sale to an account debtor on a guaranteed sale,
sale-or-return, sale-on-approval, consignment, or any other repurchase or return
basis but such accounts shall only be excluded from Eligible Accounts Receivable
only during the length of time of any such repurchase or return obligations; 
any account which arises from the sale to a Customer on a cash-on-delivery
basis;  any account for which there exists a right of set off, defense or
discount, except regular discounts allowed in the ordinary course of business to
promote prompt payment and for which no defense or counterclaim has been
asserted, but such accounts shall only be excluded from Eligible Accounts
Receivable to the extent of such asserted right of setoff, defense or discount;

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{N0109914 } 4 5421512  any account which arises from the sale or lease to or
performance of services for, or represents an obligation of, an employee,
Affiliate, parent or Subsidiary of Borrower;  any account which represents an
obligation of a Customer of Borrower when 25% or more of Borrower's accounts
from such Customer are not eligible under the first exclusions paragraph of this
definition;  any account on which the Bank is not or does not continue to be,
in the Bank's reasonable discretion exercised in good faith (after providing
Borrower with not less than ten (10) days prior written notice), satisfied with
the credit standing of the Customer of Borrower in relation to the amount of
credit extended, to the extent such Account exceeds any credit limit established
by Bank, in its reasonable credit judgment, as applicable;  any account for
which the goods giving rise to such account have not been shipped to the
applicable Customer or for which the services giving rise to such account have
not been performed by the Borrower or if such account was invoiced more than
once for the same goods (other than those accounts which result from bill and
hold sales). "Customers" shall mean the account debtors obligated on any of the
Accounts Receivables. "Accounts Receivables" shall mean all of the Borrower's
accounts, instruments, contract rights, chattel paper, document, and general
intangibles arising from the sale of goods and/or the rendition of services by
the Borrower in the ordinary course of business, and the proceeds thereof and
all security and guaranties therefor, whether now existing or hereafter created,
and all returned, reclaimed or repossessed goods, and all books and records
pertaining to the foregoing. 2. Advances. The Bank shall be under no obligation
to make any Advance under the Revolving Line of Credit Loan to Borrower in
excess of the limitations stated above. [Signatures begin on the next page]

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[ex103fifththirddlhdanyal049.jpg]
{N0109914 } 5 5421512 IN WITNESS WHEREOF, the parties hereto have caused this
Agreement to be executed by their authorized representatives as of the day and
year first written above. BORROWER: DLH Holdings Corp. By:/s/ Kathryn M.
JohnBull Name: Kathryn M. JohnBull [CORPORATE SEAL] Title: Chief Financial
Officer DLH Solutions, Inc. By:/s/ Kathryn M. JohnBull Name: Kathryn M. JohnBull
[CORPORATE SEAL] Title: Chief Financial Officer

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[ex103fifththirddlhdanyal050.jpg]
{N0109914 } 6 5421512 Danya International, LLC By:/s/ Kathryn M. JohnBull Name:
Kathryn M. JohnBull [CORPORATE SEAL] Title: Chief Financial Officer BANK: Fifth
Third Bank By:/s/ Anne Cross Name: Anne Cross Title: Vice President

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[ex103fifththirddlhdanyal051.jpg]
Exhibit B Permitted Liens

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[ex103fifththirddlhdanyal052.jpg]
{N0109914 } Exhibit C Backlog Report FIFTH THIRD BANK Company Name BACKLOG
REPORT Backlog Report as of Government Agency Type Description Original Final/
Contract Amount Billings Funded Unfunded Total Contract Number Name & (CPFF;
FFP, Contract Renewal Value Funded to Date Remaining Remaining Backlog Address
8(a) etc.) Date Date (A) (B) (Sum of A & B) Please attach copies of first two
pages of each contract listed. After initial submission, attach only copies of
new or modified contracts, or options exercised.

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[ex103fifththirddlhdanyal053.jpg]
{N0109914 } Exhibit D Assignment of Claims Act

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[ex103fifththirddlhdanyal054.jpg]
{N0109914 } FIFTH THIRD BANK Instrument of Assignment of Payments Under
Government Contracts Know all men by these presents: That (“Assignor”) (Check
one) a corporation organized and existing under the laws of a partnership
existing under the laws of a limited liability co. organized and existing under
the laws of an individual. and having its principal place of business at in
consideration of financial accommodations provided or to be provided, and for
other good and valuable consideration, receipt whereof is hereby acknowledged,
and pursuant to the provisions of the Assignment of Claims Act of 1940, as
amended (31 U.S.C. § 3727, 41 U.S.C. § 6305), does hereby assign, set over,
transfer, pledge and convey to FIFTH THIRD BANK, (“Bank”) all of Assignor's
right, title and interest which Assignor now has or may have in and to all
moneys due or to become due from the United States of America or from any agency
or department thereof under: Contract# Date Agency Description and does hereby
authorize the Bank to receive and collect any amount or amounts due or to become
due thereunder, and to receive and collect the same as fully and to the same
extent as if said moneys were its own funds and to apply said money first to
repayment of any loan or loans now or hereafter existing made by the Bank to the
Assignor and to the interest thereon, and to any other indebtedness of the
Assignor to the Bank now existing or which may hereafter be incurred. In Witness
Whereof, the undersigned has caused this Instrument of Assignment to be duly
executed and delivered on its behalf, this day of , . Assignor By: (Seal) Print
Name and Title Address
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If Assignor is a corporation: affix corporate seal here or attach Certified
Board Resolution authorizing assignment. Also, the Secretary or Assistant
Secretary must attest to this document. Signature of Secretary
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If Assignor is a partnership: this document must be I hereby certify that I am a
General Partner of: executed by a General Partner and notarized below. , a
partnership By:
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If Assignor is a limited liability company: this document I hereby certify that
I am an authorized signer of: must be executed by an authorized signer of the
company , a limited liability and notarized below. company By:

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{N0109914 }
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If Assignor is a partnership, a limited liability company State of , County/City
of or an individual: this document must be notarized. SS: The foregoing
instrument was acknowledged before me this day of , 20___. By: (signature) My
commission expires (date)

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{N0109914 } FIFTH THIRD BANK Notice of Assignment of U.S. Government Contracts
To: Date: This has a reference to Contract No. dated entered into between
(contractor name and address) and (government agency, name of office and address
for (describe nature of the contract) Moneys due or to become due under the
contract described above have been assigned to the undersigned under the
provisions of the Assignment of Claims Act of 1940, as amended, 31 U.S.C. §3727,
41 U.S.C. §6305. A true copy of the instrument of assignment executed by the
contractor on ____________ (date), is attached to the original notice. Payments
due or to become due under the contract should be made to the undersigned
assignee. Please return to the undersigned the three enclosed copies of this
notice with appropriate notations showing the date and hour of receipt, and
signed by the person acknowledging receipt on behalf of the addressee. PAYMENT
INSTRUCTIONS: If by mail, please remit to: If by ACH, please remit to: (Bank)
(Bank) (ACH Address) (ABA#) (Account #) Very Truly yours, FIFTH THIRD BANK (name
of assignee) By: (signature of signing officer) Title: (title of signing
officer) (telephone)
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-------------------------- -------------- ACKNOWLEDGMENT Receipt is acknowledged
of the above notice and of a copy of the above mentioned instrument of
assignment. They were received___________ (a.m.)(p.m.) on
_______________________________________, 20_____.

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{N0109914 } ___________________________________________(signature)
___________________________________________(title)
___________________________________________ on behalf of
___________________________________________(name of addressee of this notice)

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{N0109914 } Schedule 1 EBITDA addbacks

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{N0109914 } Schedule 7.13 Other Equity Investments None other than proposed
purchase of 100% of membership interests of Danya International, LLC.

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{N0109914 } Schedule 7.14 Subsidiaries

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{N0109914 } Schedule 8.4 Existing Indebtedness For DLH Holdings, Corp. and its
Subsidiaries (excluding Danya International, LLC) See attachments

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{N0109914 } Schedule 8.7 Existing Investments

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{N0109914 } Schedule 8.8 Existing Extensions of Credit

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