Exhibit 10.1


Execution Version


 


 



 


LOAN, SECURITY
AND GUARANTEE AGREEMENT


 


Dated as of November
16, 2022


 


 



 


 


APPLIED OPTOELECTRONICS,
INC., and


 


CERTAIN OTHER
PERSONS FROM TIME TO TIME


DESIGNATED AS
A BORROWER HEREUNDER,


 


as Borrowers,


 


 



 


 


CERTAIN OTHER
PERSONS FROM TIME TO TIME 


DESIGNATED AS
A GUARANTOR HEREUNDER,


 




as Guarantors,


 





 


 


CERTAIN FINANCIAL
INSTITUTIONS,


 




as Lenders,


 





 


 


CIT NORTHBRIDGE
CREDIT LLC,


 




as Agent,


 





 


 and




 


CIT NORTHBRIDGE
CREDIT LLC,


 


as Sole Lead Arranger
and Sole Bookrunner


 





 


 


 






    	 	 	 



     


    

 


TABLE
OF CONTENTS


Page


 




	SECTION 1.   DEFINITIONS; RULES OF CONSTRUCTION	1
	1.1   Definitions	1
	1.2   Accounting Terms	28
	1.3   Uniform Commercial Code	28
	1.4   Certain Matters of Construction	28
	1.5   Rates	28
	1.6   Division	29
	SECTION 2.   CREDIT FACILITIES	29
	2.1   Revolver Commitment.	29
	2.2   [Reserved]	30
	2.3   Letter of Credit Facility	30
	SECTION 3.   INTEREST, FEES AND CHARGES	33
	3.1   Interest	33
	3.2   Fees	33
	3.3   Computation of Interest, Fees, Yield Protection	34
	3.4   Reimbursement Obligations	34
	3.5   Illegality	34
	3.6   SOFR Unavailability	34
	3.7   Increased Costs; Capital Adequacy	36



 


 


 






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	3.8   Mitigation	36
	3.9   Funding Losses	37
	3.10   Maximum Interest	37
	SECTION 4.   LOAN ADMINISTRATION	38
	4.1   Manner of Borrowing and Funding Revolver Loans	38
	4.2   Defaulting Lender	39
	4.3   [Reserved]	39
	4.4   Borrower Agent	39
	4.5   One Obligation	40
	4.6   Effect of Termination	40
	SECTION 5.   PAYMENTS	40
	5.1   General Payment Provisions	40
	5.2   Repayment of Revolver Loans	40
	5.3   Certain Mandatory Prepayments	40
	5.4   Payment of Other Obligations	40
	5.5   Marshaling; Payments Set Aside	41
	5.6   Application and Allocation of Payments	41
	5.7   Dominion Account	42
	5.8   Account Stated	42
	5.9   Taxes	42
	5.10   Lender Tax Information	43
	5.11   Nature and Extent of Each Borrower’s Liability	45



 


 


 






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	SECTION 6.   CONDITIONS PRECEDENT	47
	6.1   Conditions Precedent to Initial Loans	47
	6.2   Conditions Precedent to All Credit Extensions	49
	SECTION 7.   COLLATERAL	49
	7.1   Grant of Security Interest	49
	7.2   Lien on Deposit Accounts; Cash Collateral	50
	7.3   [Reserved]	51
	7.4   Other Collateral	51
	7.5   Equity Interests	51
	7.6   Limitations	51
	7.7   Further Assurances	51
	7.8   Delivery of Pledged Securities; Certificated Securities	52
	7.9   [Reserved]	52
	7.10   Remedial Provisions	52
	SECTION 8.   COLLATERAL ADMINISTRATION	54
	8.1   Borrowing Base Reports	54
	8.2   Accounts	54
	8.3   Inventory	55
	8.4   Equipment	56
	8.5   Deposit Accounts	56
	8.6   General Provisions	56



 


 


 






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	8.7   Power of Attorney	57
	SECTION 9.   REPRESENTATIONS AND WARRANTIES	58
	9.1   General Representations and Warranties	58
	9.2   Complete Disclosure	62
	SECTION 10.   COVENANTS AND CONTINUING AGREEMENTS	62
	10.1   Affirmative Covenants	62
	10.2   Negative Covenants	65
	10.3   Financial Covenants	69
	SECTION 11.   EVENTS OF DEFAULT; REMEDIES ON DEFAULT	69
	11.1   Events of Default	69
	11.2   Remedies upon Default	70
	11.3   License	71
	11.4   Setoff	71
	11.5   Remedies Cumulative; No Waiver	72
	SECTION 12.   AGENT	72
	12.1   Appointment, Authority and Duties of Agent	72
	12.2   Agreements Regarding Collateral; Borrower Materials; Credit Bidding	73
	12.3   Reliance By Agent	74
	12.4   Action Upon Default	75
	12.5   Ratable Sharing	75



 


 


 






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	12.6   Indemnification	75
	12.7   Limitation on Responsibilities of Agent	76
	12.8   Successor Agent and Co-Agents	76
	12.9   Due Diligence and Non-Reliance	77
	12.10   Remittance of Payments and Collections	77
	12.11   Individual Capacities	77
	12.12   Titles	77
	12.13   Bank Product Providers	78
	12.14   Flood Laws	78
	12.15   No Third Party Beneficiaries	78
	12.16   Certain ERISA Matters.	78
	12.17   Recovery of Payments; Presumption by Agent.	79
	SECTION 13.   BENEFIT OF AGREEMENT; ASSIGNMENTS	79
	13.1   Successors and Assigns	79
	13.2   Participations	80
	13.3   Assignments	80
	13.4   Replacement of Certain Lenders	81
	SECTION 14.   MISCELLANEOUS	81
	14.1   Consents, Amendments and Waivers	81
	14.2   Indemnity	82



 


 


 






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	14.3   Notices and Communications	83
	14.4   Performance of Obligors’ Obligations	83
	14.5   Credit Inquiries	84
	14.6   Severability	84
	14.7   Cumulative Effect; Conflict of Terms	84
	14.8   Counterparts; Execution	84
	14.9   Entire Agreement	84
	14.10   Relationship with Lenders	84
	14.11   No Advisory or Fiduciary Responsibility	84
	14.12   Confidentiality	85
	14.13   GOVERNING LAW	85
	14.14   Consent To Forum	85
	14.15   Waivers by Obligors	86
	14.16   Patriot Act Notice	86
	14.17   NO ORAL AGREEMENT	86
	SECTION 15.   GUARANTY	86
	15.1   Guaranty of the Obligations	86
	15.2   Contribution by Guarantors	86
	15.3   Payment by Guarantors	87
	15.4   Liability of Guarantors Absolute	87
	15.5   Waivers by Guarantors	88
	15.6   Guarantors’ Rights of Subrogation, Contribution, etc.	89



 


 


 






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	15.7   Subordination of Other Obligations	89
	15.8   Continuing Guaranty	89
	15.9   Authority of Guarantors or Borrowers	89
	15.10   Financial Condition of Borrowers	89
	15.11   Bankruptcy, etc.	90
	SECTION 16.   ACKNOWLEDGEMENTS.	90
	16.1.   Acknowledgment and Consent to Bail-In of Affected Financial Institutions	90
	16.2.   Acknowledgement Regarding Any Supported QFCs	91


 


 


LIST
OF EXHIBITS


 


	Exhibit A-1	Assignment and Acceptance
	Exhibit A-2	Assignment Notice
	Exhibit B	Borrowing Base Report
	Exhibit C	Compliance Certificate




 


 


 






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LOAN, SECURITY AND GUARANTEE AGREEMENT


 


THIS LOAN, SECURITY AND
GUARANTEE AGREEMENT (this “Agreement”) is dated as of November 16, 2022, among APPLIED OPTOELECTRONICS, INC.,
a Delaware corporation (“AOI”, and together with any other Person from time to time designated as a borrower hereunder,
collectively, the “Borrowers” and each, individually, a “Borrower”), the other Obligors from time
to time party hereto, the financial institutions party to this Agreement from time to time as Lenders, and CIT NORTHBRIDGE CREDIT LLC,
a Delaware limited liability company (“CNC”), as agent for the Secured Parties (in such capacity, “Agent”).


 


R E C I T A L S:


 


Borrowers have requested that
Lenders provide a credit facility to Borrowers to finance their mutual and collective business enterprise. Lenders are willing to provide
the credit facility on the terms and conditions set forth in this Agreement.


 


NOW, THEREFORE, for
valuable consideration hereby acknowledged, the parties agree as follows:


 


SECTION
1.          DEFINITIONS;
RULES OF CONSTRUCTION


 


1.1              
Definitions. As used herein, the following terms have the meanings set forth below:


 


Accounts Formula Amount:
(a) up to 90% of the Value of Eligible Accounts (other than Credit Insured Foreign Accounts) that constitute Investment Grade Accounts,
plus (b) up to 85% of the Value of Eligible Accounts (other than Credit Insured Foreign Accounts) that do not constitute Investment
Grade Accounts, plus (c) up to 90% of the Value of Credit Insured Foreign Accounts, in each case of clauses (a), (b) and (c), subject
to Agent’s discretion.


 


Acquisition: a transaction
or series of transactions resulting in (a) acquisition of a business, division or substantially all assets of a Person; (b) record or
beneficial ownership of 50% or more of the Equity Interests of a Person; or (c) merger, consolidation or combination of an Obligor or
Subsidiary with another Person.


 


Adjusted Term SOFR:
for purposes of any calculation, the rate per annum equal to (a) Term SOFR for such calculation plus (b) the Term SOFR Adjustment; provided,
that if Adjusted Term SOFR as so determined shall ever be less than the Floor, then Adjusted Term SOFR shall be deemed to be the Floor.


 


Affected Financial Institution:
(a) any EEA Financial Institution or (b) any UK Financial Institution.


 


Affiliate: 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. “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 correlative meanings.


 


Agent Indemnitees:
Agent and its officers, directors, employees, Affiliates, agents and attorneys.


 


Agent Professionals:
attorneys, accountants, appraisers, auditors, business valuation experts, environmental engineers or consultants, turnaround consultants,
and other professionals and experts retained by Agent.


 


Allocable Amount: as
defined in Section 5.11.3.


 


 


 


 






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Anti-Terrorism Law:
any law relating to terrorism or money laundering, including the Patriot Act.


 


Applicable Law: all
laws, rules, regulations and governmental guidelines applicable to the Person conduct, transaction, agreement or matter in question, including
statutory law, common law and equitable principles, as well as provisions of constitutions, treaties, statutes, rules, regulations, orders
and decrees of Governmental Authorities.


 


Applicable Margin:
the rate per annum set forth below, as determined by the average Revolver Usage for the prior calendar month (in each case, as calculated
by Agent in its discretion):


 


	
     

    Level
	
    Average Revolver Usage

    for the Prior Calendar Month
	Base Rate Loans or SOFR Loans	 
	 	 	 	 
	I	
    < 50% of the Revolver Commitments

     
	3.75%	 
	II	
    > 50% of the Revolver Commitments

     
	4.75%	 


 


From and after the Closing Date, through and including
December 31, 2022, margins shall be determined as if Level II were applicable. Thereafter, margins shall be subject to increase or decrease
by Agent on the first day of each calendar month.


 


Approved Fund: any
Person (other than a natural Person) engaged in making, purchasing, holding or otherwise investing in commercial loans in its ordinary
course of activities.


 


Asset Disposition:
a sale, lease, license, consignment, transfer or other disposition of Property of an Obligor, including any disposition in connection
with a sale-leaseback transaction or synthetic lease.


 


Assignment: an assignment
agreement between a Lender and Eligible Assignee, in the form of Exhibit A-1 or otherwise satisfactory to Agent.


 


Assignment Notice:
a notice of an assignment pursuant to an Assignment Agreement, in the form of Exhibit A-2 or otherwise satisfactory to Agent.


 


Attributable Debt:
when used with respect to any Sale and Leaseback Transaction, as of the time of determination, the total obligations of the lessee for
rental payments during the remaining term of the lease included in any such Sale and Leaseback Transaction. For the avoidance of doubt,
the Attributable Debt with respect to any Sale and Leaseback Transaction shall constitute Purchase Money Debt hereunder, and the Liens
securing such Attributable Debt shall constitute Purchase Money Liens hereunder.


 


Availability: the Borrowing
Base minus Revolver Usage.


 


Availability Reserve:
the sum (without duplication) of (a) the Inventory Reserve; (b) the Rent and Charges Reserve; (c) the Bank Product Reserve;
(d) the aggregate amount of liabilities secured by Liens upon Collateral that are senior to Agent's Liens (but imposition of any
such reserve shall not waive an Event of Default arising therefrom); (e) reserves relating to accrued and unpaid Tax liabilities;
(f) the Dilution Reserve; and (g) such additional reserves, in such amounts and with respect to such matters, as Agent in its discretion
may elect to impose from time to time.


 


 


 


 






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Available Tenor: as
of any date of determination and with respect to the then-current Benchmark, as applicable, (a) if such Benchmark is a term rate, any
tenor for such Benchmark (or component thereof) that is or may be used for determining the length of an interest period pursuant to this
Agreement or (b) otherwise, any payment period for interest calculated with reference to such Benchmark (or component thereof) that is
or may be used for determining any frequency of making payments of interest calculated with reference to such Benchmark pursuant to this
Agreement, in each case, as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed
from the definition of "Monthly Period" pursuant to Section 3.6.2(d).


 


Average Availability:
as of any date of determination, the sum of Availability for each of the previous sixty (60) days, divided by sixty (60).


 


Average Projected Availability:
the projected the sum of Availability for each of the upcoming sixty (60) days, divided by sixty (60) based on projections delivered to
Agent by Borrowers at the time of making any applicable payment.


 


Bail-In Action: the
exercise of any Write-Down and Conversion Powers by the applicable Resolution Authority in respect of any liability of an Affected Financial
Institution.


 


Bail-In Legislation:
(a) with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council
of the European Union, the implementing law, regulation rule or requirement for such EEA Member Country from time to time which is described
in the EU Bail-In Legislation Schedule and (b) with respect to the United Kingdom, Part I of the United Kingdom Banking Act 2009 (as amended
from time to time) and any other law, regulation or rule applicable in the United Kingdom relating to the resolution of unsound or failing
banks, investment firms or other financial institutions or their affiliates (other than through liquidation, administration or other insolvency
proceedings).


 


Bank: First Citizens
Bank.


 


Bank Product: any of
the following products or services extended to, or arranged for, a Borrower or Affiliate of a Borrower by Agent, a Lender or any of their
respective Affiliates: (a) Cash Management Services; (b) products under Hedging Agreements; (c) commercial credit card and merchant card
services; and (d) other banking products or services, other than Letters of Credit.


 


Bank Product Reserve:
the aggregate amount of reserves established by Agent from time to time in its discretion with respect to Secured Bank Product Obligations.


 


Bankruptcy Code: Title
11 of the United States Code.


 


Base Rate: for any
day a fluctuating rate per annum equal to the highest of: (a) the Floor, (b) the Federal Funds Rate plus 1/2 of one percent
(1%) or (c) the rate of interest in effect for such day as publicly announced from time to time by JPMorgan Chase Bank, N.A. as its
"prime rate" in effect for such day. Any change in the "prime rate" announced by JPMorgan Chase Bank, N.A. shall take
effect without notice to the Borrowers at the opening of business on the day specified as the effective date of change in the public announcement
or publication of such change. The Base Rate is not necessarily the lowest rate of interest charged by Lenders in connection with extensions
of credit. If JPMorgan Chase Bank, N.A. ceases to announce its "prime rate", Agent may select a reasonably comparable index
or source to use as the basis for the Base Rate. For the avoidance of doubt, the Base Rate will in no event be less than the Floor.


 


Base Rate Loan: a Loan
that accrues interest by reference to the Base Rate in accordance with the term of this Agreement.


 


Benchmark: initially,
the Term SOFR Reference Rate; provided, that if a Benchmark Transition Event has occurred with respect to the Term SOFR Reference
Rate or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent that such
Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 3.6.2(a).


 


 


 


 






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Benchmark Replacement:
with respect to any Benchmark Transition Event, the sum of: (a) the alternative benchmark rate that has been selected by Agent and Borrower
Agent giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining
such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate
as a replacement for the then-current Benchmark for Dollar-denominated syndicated credit facilities and (b) the related Benchmark Replacement
Adjustment; provided, that if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement shall
be deemed to be the Floor for the purposes of this Agreement and the other Loan Documents.


 


Benchmark Replacement Adjustment:
with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement for any applicable Monthly Period,
the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or
zero) that has been selected by Agent and Borrower Agent giving due consideration to (a) any selection or recommendation of a spread adjustment,
or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted
Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread
adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable
Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities at such time.


 


Benchmark Replacement Date:
the earliest to occur of the following events with respect to the then-current Benchmark:


 


(a)       in
the case of clause (a) or (b) of the definition of "Benchmark Transition Event," the later of (i) the date of the public statement
or publication of information referenced therein and (ii) the date on which the administrator of such Benchmark (or the published component
used in the calculation thereof) permanently or indefinitely ceases to provide all Available Tenors of such Benchmark (or such component
thereof); or


 


(b)       in
the case of clause (c) of the definition of "Benchmark Transition Event," the first date on which such Benchmark (or the published
component used in the calculation thereof) has been determined and announced by the regulatory supervisor for the administrator of such
Benchmark (or such component thereof) to be non-representative; provided that such non-representativeness will be determined by
reference to the most recent statement or publication referenced in such clause (c) and even if any Monthly Period of such Benchmark (or
such component thereof) continues to be provided on such date.


 


For the avoidance of doubt, the "Benchmark
Replacement Date" will be deemed to have occurred in the case of clause (a) or (b) with respect to any Benchmark upon the occurrence
of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published
component used in the calculation thereof).


 


Benchmark Transition Event:
the occurrence of one or more of the following events with respect to the then-current Benchmark:


 


(a)       a
public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component used
in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of such Benchmark
(or such component thereof), permanently or indefinitely, provided that, at the time of such statement or publication, there is no successor
administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof);


 


(b)       a
public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof), the FRB, the Federal Reserve Bank of New York, an insolvency official with jurisdiction over
the administrator for such Benchmark (or such component), a resolution authority with jurisdiction over the administrator for such Benchmark
(or such component) or a court or an entity with similar insolvency or resolution authority over the administrator for such Benchmark
(or such component), which states that the administrator of such Benchmark (or such component) has ceased or will cease to provide all
Available Tenors of such Benchmark (or such component thereof) permanently or indefinitely, provided that, at the time of such
statement or publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or
such component thereof); or


 


 


 


 






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(c)       a
public statement or publication of information by the regulatory supervisor for the administrator of such Benchmark (or the published
component used in the calculation thereof) announcing that all Available Tenors of such Benchmark (or such component thereof) are not,
or as of a specified future date will not be, representative.


 


For the avoidance of doubt, if the then-current
Benchmark has any Available Tenors, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark
if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of
such Benchmark (or the published component used in the calculation thereof).


 


Benchmark Transition Start
Date: in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark
Transition Event is a public statement or publication of information of a prospective event, the ninetieth (90th) day prior to the expected
date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer
than ninety (90) days after such statement or publication, the date of such statement or publication).


 


Benchmark Unavailability
Period: the period (if any) (a) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark
Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Loan Document in accordance with Section
3.6.2 and (b) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and
under any Loan Document in accordance with Section 3.6.2.


 


Board of Governors:
the Board of Governors of the Federal Reserve System.


 


Borrowed Money: with
respect to any Obligor, without duplication, its (a) Debt that (i) arises from the lending of money by any Person to such Obligor, (ii)
is evidenced by notes, drafts, bonds, debentures, credit documents or similar instruments, (iii) accrues interest or is a type upon which
interest charges are customarily paid (excluding trade payables owing in the Ordinary Course of Business), or (iv) was issued or assumed
as full or partial payment for Property; (b) Capital Leases; (c) letter of credit reimbursement obligations; and (d) guaranties of any
of the foregoing owing by another Person.


 


Borrower Agent: as
defined in Section 4.4.


 


Borrower Materials:
Borrowing Base Reports, Compliance Certificates and other information, reports, financial statements and other materials delivered by
Borrowers hereunder, as well as other Reports and information prepared by Borrowers and provided by Agent to Lenders.


 


Borrowing: a group
of Loans that are made or converted together on the same day and have the same interest option and, if applicable, Interest Period.


 


Borrowing Base: on
any date of determination, an amount equal to (a) the lesser of (i) the aggregate Revolver Commitments; or (ii) the sum of the
Accounts Formula Amount; plus the Inventory Formula Amount; minus (b) the Availability Reserve.


 


Borrowing Base Report:
a report in the form attached hereto as Exhibit B by which Borrower Agent certifies pursuant to Section 8.1 the Borrowing
Base.


 


Business Day: any day
other than a Saturday, Sunday, any other day on which commercial banks are authorized to close under the laws of, or are in fact closed
in, New York, and any other day on which the Federal Reserve Bank of New York is closed.


 


Capital Expenditures:
all liabilities incurred or expenditures made by a Borrower or Subsidiary for the acquisition of fixed assets, or any improvements, replacements,
substitutions or additions thereto with a useful life of more than one year.


 


 


 


 






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Capital Lease: any
lease required to be capitalized for financial reporting purposes in accordance with GAAP.


 


Cash Collateral: cash
or Cash Equivalents acceptable to Agent in its Permitted Discretion, in each case, delivered to Agent to Cash Collateralize any Obligations,
and all interest, dividends, earnings and other proceeds relating thereto.


 


Cash Collateralize:
the delivery to Agent of cash or Cash Equivalents acceptable to Agent in its Permitted Discretion, as security for the payment of Obligations,
in an amount equal to (a) with respect to LC Obligations, 105% of the aggregate LC Obligations, and (b) with respect to any
inchoate, contingent or other Obligations (including Secured Bank Product Obligations), Agent's good faith estimate of the amount due
or to become due, including fees, expenses and indemnification hereunder. "Cash Collateralization" has a correlative
meaning.


 


Cash Equivalents: (a)
marketable obligations issued or unconditionally guaranteed by, and backed by the full faith and credit of, the U.S. government, maturing
within 12 months of the date of acquisition; (b) certificates of deposit, time deposits and bankers’ acceptances maturing within
12 months of the date of acquisition, and overnight bank deposits, in each case which are issued by a commercial bank organized under
the laws of the United States or any state or district thereof, rated A-1 (or better) by S&P or P-1 (or better) by Moody’s at
the time of acquisition, and (unless issued by a Lender) not subject to offset rights; (c) repurchase obligations with a term of not more
than 30 days for underlying investments of the types described in clauses (a) and (b) entered into with any bank described in clause (b);
and (d) shares of any money market fund that has substantially all of its assets invested continuously in the types of investments referred
to above, has net assets of at least $500,000,000 and has the highest rating obtainable from either Moody’s or S&P.


 


Cash Management Services:
services relating to operating, collections, payroll, trust, or other depository or disbursement accounts, including automated clearinghouse,
e-payable, electronic funds transfer, wire transfer, controlled disbursement, overdraft, depository, information reporting, lockbox and
stop payment services.


 


CERCLA: the Comprehensive
Environmental Response Compensation and Liability Act (42 U.S.C. § 9601 et seq.).


 


CFC: a "controlled
foreign corporation" within the meaning of Section 957 of the Code in which any Obligor or direct or indirect owner of an Obligor
is a "United States shareholder" within the meaning of Section 951(b) of the Code.


 


Change in Law: the
occurrence, after the date hereof, of (a) the adoption, taking effect or phasing in of any law, rule, regulation or treaty; (b) any change
in any law, rule, regulation or treaty or in the administration, interpretation or application thereof; (c) any new, or adjustment to,
requirements prescribed by the FRB), requirements imposed by the Federal Deposit Insurance Corporation, or similar requirements imposed
by any domestic or foreign governmental authority or resulting from compliance by Agent or any Lender with any request or directive (whether
or not having the force of law) from any central bank or other Governmental Authority and related in any manner to SOFR, the Term SOFR
Reference Rate, Adjusted Term SOFR or Term SOFR; or (d) the making, issuance or application of any request, guideline, requirement or
directive (whether or not having the force of law) by any Governmental Authority; provided, however, that “Change
in Law” shall include, regardless of the date enacted, adopted or issued, all requests, rules, guidelines, requirements or directives
(i) under or relating to the Dodd-Frank Wall Street Reform and Consumer Protection Act, or (ii) promulgated pursuant to Basel III by the
Bank for International Settlements, the Basel Committee on Banking Supervision (or any similar authority) or any other Governmental Authority.


 


Change of Control:
(a) AOI ceases to own and control, beneficially and of record, directly or indirectly, free and clear of all Liens or other encumbrances
(other than those in favor of Agent), 100% of the Equity Interests in all other Borrowers and Subsidiaries (except, with respect to any
Subsidiary, in connection with an Asset Disposition of the Equity Interests of a Subsidiary permitted by the Loan Documents) on a fully
diluted basis, and all voting rights and equivalent economic interests with respect thereto; (b) AOI ceases to be a publicly traded corporation;
(c) any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act)
shall become the “beneficial owner” (as defined in Rules 13(d)-3 and 13(d)-5 under such Act), directly or indirectly, of more
than 35% of the then outstanding voting Equity Interests of AOI; (d) the sale or transfer of all or substantially all assets of a
Borrower, except to another Borrower; (e) a "Change of Control" or any term of similar effect as defined in the document
governing any Subordinated Debt; or (f) a “Fundamental Change” as defined in the Convertible Notes Indenture (or any term
of similar effect as defined in any Refinancing Debt with respect thereto).


 


 


 






    	 	6	 



     


    

 


Chinatrust Account:
that certain deposit account of AOI held at Chinatrust Commercial Bank with account number ending in 6327.


 


Claims: all claims,
liabilities, obligations, losses, damages, penalties, judgments, proceedings, interest, costs and expenses of any kind (including remedial
response costs, reasonable attorneys’ fees and Extraordinary Expenses) at any time (including after Full Payment of the Obligations
or replacement of Agent or any Lender) incurred by any Indemnitee or asserted against any Indemnitee by any Obligor or other Person, in
any way relating to (a) any Loans, Letters of Credit, Loan Documents, Borrower Materials, or the use thereof or transactions relating
thereto, (b) any action taken or omitted in connection with any Loan Documents, (c) the existence or perfection of any Liens, or realization
upon any Collateral, (d) exercise of any rights or remedies under any Loan Documents or Applicable Law, or (e) failure by any Obligor
to perform or observe any terms of any Loan Document, in each case including all costs and expenses relating to any investigation, litigation,
arbitration or other proceeding (including an Insolvency Proceeding or appellate proceedings), whether or not the applicable Indemnitee
is a party thereto.


 


Closing Date: as defined
in Section 6.1.


 


CNC Indemnitees: CNC
and its officers, directors, employees, Affiliates, agents and attorneys.


 


Code: the Internal
Revenue Code of 1986.


 


Collateral: all Property
described in Section 7.1, all Property described in any Security Documents as security for any Obligations, and all other Property
that now or hereafter secures (or is intended to secure) any Obligations; provided, however, that Collateral shall not include
Real Estate owned by any Obligors and any assets of any kind owned directly or indirectly by a Foreign Subsidiary that is not an Obligor.


 


Commitment: for any
Lender, the aggregate amount of such Lender’s Revolver Commitment. “Commitments” means the aggregate amount of
all Revolver Commitments.


 


Commitment Termination
Date: the earliest to occur of (a) the Revolver Termination Date; (b) the date on which Borrowers terminate the Revolver Commitments
pursuant to Section 2.1.4; or (c) the date on which the Revolver Commitments are terminated pursuant to Section 11.2.


 


Commodity Exchange Act:
the Commodity Exchange Act (7 U.S.C. § 1 et seq.).


 


Compliance Certificate:
a certificate in the form attached hereto as Exhibit C signed by the chief financial officer of Borrower Agent, delivered pursuant
to Section 10.1.2(c).


 


Conforming Changes:
with respect to either the use or administration of Term SOFR or the use, administration, adoption or implementation of any Benchmark
Replacement, any technical, administrative or operational changes (including changes to the definition of "Business Day," the
definition of "U.S. Government Securities Business Day," the definition of "Monthly Period" or any similar or analogous
definition (or the addition of a concept of "interest period"), timing and frequency of determining rates and making payments
of interest, timing of borrowing requests or prepayment, conversion or continuation notices, the applicability and length of lookback
periods, the applicability of Section 3.9 and other technical, administrative or operational matters) that Agent decides may be
appropriate to reflect the adoption and implementation of any such rate or to permit the use and administration thereof by Agent in a
manner substantially consistent with market practice (or, if Agent decides that adoption of any portion of such market practice is not
administratively feasible or if Agent determines that no market practice for the administration of any such rate exists, in such other
manner of administration as Agent decides is reasonably necessary in connection with the administration of this Agreement and the other
Loan Documents).


 


Connection Income Taxes:
Other Connection Taxes that are imposed on or measured by net income (however denominated), or are franchise or branch profits Taxes.


 


 


 


 






    	 	7	 



     


    

 


Contingent Obligation:
any obligation of a Person arising from a guaranty, indemnity or other assurance of payment or performance of any Debt, lease, dividend
or other obligation (“primary obligations”) of another obligor (“primary obligor”) in any manner,
whether directly or indirectly, including any obligation of such Person under any (a) guaranty, endorsement, co-making or sale with recourse
of an obligation of a primary obligor; (b) obligation to make take-or-pay or similar payments regardless of nonperformance by any other
party to an agreement; and (c) arrangement (i) to purchase any primary obligation or security therefor, (ii) to supply funds for the purchase
or payment of any primary obligation, (iii) to maintain or assure working capital, equity capital, net worth or solvency of the primary
obligor, (iv) to purchase Property or services for the purpose of assuring the ability of the primary obligor to perform a primary obligation,
or (v) otherwise to assure or hold harmless the holder of any primary obligation against loss in respect thereof. The amount of any Contingent
Obligation shall be deemed to be the stated or determinable amount of the primary obligation (or, if less, the maximum amount for which
such Person may be liable under the instrument evidencing the Contingent Obligation) or, if not stated or determinable, the maximum reasonably
anticipated liability with respect thereto.


 


Contract Rate: for
any day during a Monthly Period, the sum of (i) the Applicable Margin, plus (ii) the Adjusted Term SOFR in effect for
such Monthly Period, in each case expressed as a daily rate.


 


Convertible Notes:
$80,500,000 of 5.00% Convertible Senior Notes due 2024, issued by AOI on an unsecured basis pursuant to the Convertible Notes Indenture
and any additional unsecured notes issued pursuant to the Convertible Notes Indenture from time to time. “Convertible Notes”
shall include, subject in all respects to the Refinancing Conditions, Refinancing Debt incurred in replacement or substitution of any
Convertible Notes.


 


Convertible Notes Documents:
collectively, the Convertible Notes, the Convertible Notes Indenture and all other documents, agreements and instruments executed or delivered
in connection therewith. “Convertible Notes Documents” shall include, subject in all respects to the Refinancing Conditions,
any and all notes, indentures and all other documents, agreements and instruments executed or delivered in connection with any Refinancing
Debt incurred in replacement or substitution of any Convertible Notes.


 


Convertible Notes Indenture:
that certain Indenture dated as of March 5, 2019 by and between AOI and the Convertible Notes Trustee, as amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with this Agreement.


 


Convertible Notes Obligations:
all obligations of the Obligors under the Convertible Notes Documents.


 


Convertible Notes Trustee:
Wells Fargo Bank, National Association, in its capacity as trustee for the holders of the Convertible Notes.


 


Covered Entity: any
of the following: (a) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);
(b) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (c) a "covered
FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).


 


Credit Insured Foreign
Account: an Account (a) with respect to which the Account Debtor is organized or has its principal offices or assets outside the United
States or Canada, (b) that is supported by credit insurance (i) with terms, and issued by an insurer, acceptable to Agent in its sole
discretion, (ii) which names Agent as an additional insured and the sole lender's loss payee or collateral beneficiary and (iii) pursuant
to which Agent shall have the right to make claims under such credit insurance policy directly to the insurer and receive notices of cancellation,
amendment and changes in coverage limits and covered Account Debtors and (c) otherwise constitutes an Eligible Account. No Credit Insured
Foreign Account shall constitute an Investment Grade Account.


 


CWA: the Clean Water
Act (33 U.S.C. §§ 1251 et seq.).


 


 


 


 






    	 	8	 



     


    

 


Debt: as applied to
any Person, without duplication, (a) all items that would be included as liabilities on a balance sheet in accordance with GAAP, including
Capital Leases, but excluding trade payables incurred and being paid in the Ordinary Course of Business; (b) all Contingent Obligations;
(c) all reimbursement obligations in connection with letters of credit issued for the account of such Person; and (d) in the case of an
Obligor, the Obligations. The Debt of a Person shall include any recourse Debt of any partnership in which such Person is a general partner
or joint venturer.


 


Default: an event or
condition that, with the lapse of time or giving of notice, would constitute an Event of Default.


 


Default Rate: for any
Obligation (including, to the extent permitted by law, interest not paid when due), 3.00% plus the interest rate otherwise applicable
thereto.


 


Defaulting Lender:
any Lender that, as determined by Agent, (a) has failed to perform any funding obligations hereunder, and such failure is not cured within
two Business Days; (b) has notified Agent or any Borrower that such Lender does not intend to comply with its funding obligations hereunder
or under any other credit facility, or has made a public statement to that effect; (c) has failed, within three Business Days following
request by Agent, to confirm in a manner satisfactory to Agent and Borrowers that such Lender will comply with its funding obligations
hereunder; or (d) has, or has a direct or indirect parent company that has, become the subject of an Insolvency Proceeding (including
reorganization, liquidation, or appointment of a receiver, custodian, administrator or similar Person by the Federal Deposit Insurance
Corporation or any other regulatory authority) or Bail-In Action; or taken any action in furtherance thereof provided, however,
that a Lender shall not be a Defaulting Lender solely by virtue of a Governmental Authority’s ownership of an equity interest in
such Lender or parent company unless the ownership provides immunity for such Lender from jurisdiction of courts within the United States
or from enforcement of judgments or writs of attachment on its assets, or permits such Lender or Governmental Authority to repudiate or
otherwise to reject such Lender’s agreements.


 


Deposit Account Control
Agreement: control agreement satisfactory to Agent executed by an institution maintaining a Deposit Account (or securities account)
for an Obligor, to perfect Agent’s Lien on such account. For the avoidance of doubt, the term “Deposit Account Control Agreement”
shall include any securities account control agreement satisfactory to Agent executed by an institution maintaining a securities account
for an Obligor, to perfect Agent’s Lien on such account.


 


Designated Jurisdiction:
a country, region or territory which is itself the subject or target of any Sanctions. For the avoidance of doubt, as of the date hereof,
neither the People’s Republic of China nor Taiwan is a Designated Jurisdiction.


 


Dilution Percent: the
percent equal to (a) bad debt write-downs or write-offs, discounts, returns, promotions, credits, credit memos and other dilutive
items with respect to Accounts, divided by (b) gross sales, as calculated by Agent in its discretion.


 


Dilution Reserve: as
of any date of determination, with respect to Eligible Accounts, an amount sufficient to reduce the advance rate against Eligible Accounts
by one (1) percentage point for each percentage point by which the Dilution Percent is in excess of two and one-half percent (2.5%).


 


Disclosure Certificate:
that certain Disclosure Certificate to Loan, Security and Guarantee Agreement dated as of the date hereof and executed and delivered by
the Borrowers in connection herewith.


 


Disqualified Equity Interest:
means any Equity Interest that, by its terms (or by the terms of any security into which it is convertible or for which it is exchangeable)
or upon the happening of any event, matures or is mandatorily redeemable for any consideration other than another Equity Interest (which
would not constitute a Disqualified Equity Interest), pursuant to a sinking fund obligation or otherwise (except as a result of a change
of control or asset sale so long as any rights of the holders thereof upon the occurrence of such change of control or asset sale event
shall be subject to prior Full Payment of the Obligations), or is convertible or exchangeable for Debt or redeemable for any consideration
other than any Equity Interest (which would not constitute a Disqualified Equity Interest) at the option of the holder thereof, in whole
or in part, on or prior to the date that is one hundred-eighty (180) days after the earlier of (a) the Revolver Termination Date and (b)
Full Payment of the Obligations; provided that if such Equity Interest is issued pursuant to a Plan for the benefit of the Borrowers
or their Subsidiaries or their officers or employees, such Equity Interest shall not constitute a Disqualified Equity Interest solely
because it may be required to be repurchased by the Borrowers or their Subsidiaries in order to satisfy applicable statutory or regulatory
obligations.


 


 


 






    	 	9	 



     


    

 


Distribution: any declaration
or payment of a distribution, interest or dividend on any Equity Interest (other than payment-in-kind); distribution, advance or repayment
of Debt to a holder of Equity Interests; purchase, redemption, or other acquisition or retirement for value of any Equity Interest; or,
in the case of a limited liability company, participation in a statutory division.


 


Division: the division
of assets, liabilities and/or obligations of a Person among two or more Persons (whether pursuant to a "plan of division" or
similar arrangement), which may or may not include the original dividing Person and pursuant to which the original dividing Person may
or may not survive.


 


Dollars: lawful money
of the United States.


 


Domestic Subsidiary:
any Subsidiary of an Obligor formed under the laws of the United States, any State therein, or the District of Columbia.


 


Dominion Account: a
special account established by Borrowers at Bank or another bank acceptable to Agent, over which Agent has exclusive control for withdrawal
purposes.


 


EBITDA: for any period,
without duplication, determined on a consolidated basis for Borrowers and Subsidiaries (other than Subsidiaries that are not Obligors),
an amount equal to Net Income for such period plus the following, without duplication, to the extent deducted and not already added
back in calculating such Net Income: (a) Interest Expense for such period, (b) the provision for federal, state, local and foreign
income taxes payable for such period, (c) the amount of depreciation and amortization expense for such period, (d) other non-cash
charges, expenses or losses (provided, in each case, that if any non-cash charges represent an accrual or reserve for potential
cash items in any future period, the cash payment in respect thereof in such future period shall be subtracted from EBITDA to such extent,
and including amortization of any prepaid cash item that was paid in a prior period) and (e) one-time costs and expenses associated with
the Transactions not to exceed $800,000 to the extent such costs and expenses were incurred within ninety (90) days of the Closing Date,
and minus the following to the extent included in calculating such Net Income: (w) Interest Income, (x) income tax credits
(to the extent not netted from income taxes payable), (y) any extraordinary, unusual or non-recurring income receipts or gains (including
gains on the sale of assets outside the Ordinary Course of Business) and related tax effects thereon, and (x) other non-cash income, receipts
of gains (excluding any such non-cash item of income to the extent it represents a receipt of cash in any future period), all as determined
in accordance with GAAP. Notwithstanding the foregoing, EBITDA of any Subsidiary that is not an Obligor shall be excluded from the foregoing
calculation.


 


EEA Financial Institution:
(a) any credit institution or investment firm established in any EEA Member Country that is subject to the supervision of an EEA
Resolution Authority, (b) any entity established in an EEA Member Country that is a parent of an institution described in clause
(a) of this definition, or (c) any financial institution established in an EEA Member Country that is a subsidiary of an institution
described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent.


 


EEA Member Country:
any of the member states of the European Union, Iceland, Liechtenstein, and Norway.


 


EEA Resolution Authority:
any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including
any delegee) having responsibility for the resolution of any EEA Financial Institution.


 


 


 






    	 	10	 



     


    

 


Eligible Account: an
Account owing to a Borrower that arises in the Ordinary Course of Business from the sale of goods, is payable in Dollars and is deemed
by Agent, in its discretion, to be an Eligible Account. Without limiting the foregoing, no Account shall be an Eligible Account if (a)
it is unpaid (i) in the case of any Account that is a Credit Insured Foreign Account or that is otherwise not an Investment Grade Account,
for more than 60 days after the original due date, or more than 90 days after the original invoice date, (ii) in the case of any Investment
Grade Account, for more than 60 days after the original due date, or more than 120 days after the original invoice date; (b) 25% or more
of the Accounts owing by the Account Debtor and its Affiliates are not Eligible Accounts under the foregoing clause; (c) when aggregated
with other Accounts owing by the Account Debtor and its Affiliates, it exceeds 20% (or 50%, with respect to Accounts owing by any Material
Customer and its Affiliates) of the aggregate Eligible Accounts (or, in each case, such other percentage as Agent may establish for any
Account Debtor from time to time); (d) it does not conform with a covenant or representation herein; (e) it is owing by a creditor or
supplier, or is otherwise subject to a potential offset, counterclaim, dispute, deduction, discount, recoupment, reserve, defense, chargeback,
credit or allowance (but ineligibility shall be limited to the amount thereof); (f) an Insolvency Proceeding has been commenced by or
against the Account Debtor; or the Account Debtor has failed, has suspended or ceased doing business, is liquidating, dissolving or winding
up its affairs, is not Solvent, or is subject to any Sanction or on any specially designated nationals list maintained by OFAC; or the
Borrower is not able to bring suit or enforce remedies against the Account Debtor through judicial process; (g) the Account Debtor is
organized or has its principal offices or assets outside the United States or Canada, unless (x) the Account is supported by an irrevocable
letter of credit on terms, and issued by a financial institution, acceptable to Agent and such irrevocable letter of credit is in the
possession of Agent and is drawable by Agent or (y) the Account is a Credit Insured Foreign Account; (h) it is owing by a Governmental
Authority, unless the Account Debtor is the United States or any department, agency or instrumentality thereof and the Account has been
assigned to Agent in compliance with the federal Assignment of Claims Act; (i) it is not subject to a duly perfected, first priority Lien
in favor of Agent, or is subject to any other Lien, or is subject to any other Lien which is, or may become, senior to, or pari passu
with, the Agent’s Lien on such Account; (j) the goods giving rise to it have not been delivered to the Account Debtor, the services
giving rise to it have not been accepted by the Account Debtor, or it otherwise does not represent a final sale; (k) it is evidenced by
Chattel Paper or an Instrument of any kind, or has been reduced to judgment; (l) its payment has been extended or the Account Debtor has
made a partial payment; (m) it arises from a sale to an Affiliate, from a sale on a cash-on-delivery, bill-and-hold, sale-or-return, sale-on-approval,
consignment, or other repurchase or return basis, or from a sale for personal, family or household purposes; (n) it represents a progress
billing or retainage, or relates to services for which a performance, surety or completion bond or similar assurance has been issued;
or (o) it includes a billing for interest, fees or late charges, but ineligibility shall be limited to the extent thereof. In calculating
delinquent portions of Accounts under clauses (a) and (b), credit balances more than (i) in the case of Accounts that are
Credit Insured Foreign Accounts or that are otherwise not Investment Grade Accounts, 90 days old or (ii) in the case of Investment Grade
Accounts, 120 days old, will be excluded.


 


Eligible Assignee:
(a) a Lender, Affiliate of a Lender or Approved Fund; (b) an assignee approved by Borrower Agent (which approval shall not be unreasonably
withheld or delayed, and shall be deemed given if no objection is made within two Business Days after notice of the proposed assignment)
and Agent; or (c) during an Event of Default, any Person acceptable to Agent in its discretion.


 


Eligible Inventory:
Inventory owned by a Borrower that Agent, in its discretion, deems to be Eligible Inventory. Without limiting the foregoing, no Inventory
shall be Eligible Inventory unless it (a) is finished goods or semi-finished goods (as identified as such in any Eligible Inventory Appraisal)
(and not raw materials, work-in-process, packaging or shipping materials, labels, samples, display items, bags, replacement parts or manufacturing
supplies); (b) is not held on consignment, nor subject to any deposit or down payment; (c) is in new and saleable condition and is not
damaged, defective, shopworn or otherwise unfit for sale; (d) is not slow-moving, perishable, obsolete or unmerchantable, and does not
constitute returned or repossessed goods; (e) meets all standards imposed by any Governmental Authority, has not been acquired from a
Person subject to any Sanction or on any specially designated nationals list maintained by OFAC, and does not constitute hazardous materials
in violation of any Environmental Law; (f) conforms with the covenants and representations herein; (g) is subject to Agent’s duly
perfected, first priority Lien, and no other Lien; (h) is within the continental United States, is not in transit except between locations
of Borrowers, and is not consigned to any Person; (i) is not subject to any warehouse receipt or negotiable Document; (j) is not subject
to any License or other arrangement that restricts such Borrower’s or Agent’s right to dispose of such Inventory, unless Agent
has received an appropriate Lien Waiver; (k) is not located on leased premises or in the possession of a warehouseman, processor, repairman,
mechanic, shipper, freight forwarder or other Person, unless the lessor or such Person has delivered a Lien Waiver or an appropriate Rent
and Charges Reserve has been established; and (l) is reflected in the details of a current perpetual inventory report.


 


Eligible Inventory Appraisal:
a third party appraisal of the Eligible Inventory delivered to Agent by an appraiser acceptable to Agent.


 


 


 






    	 	11	 



     


    

 


Enforcement Action:
any action to enforce any Obligations (other than Secured Bank Product Obligations) or Loan Documents or to exercise any rights or remedies
relating to any Collateral, whether by judicial action, self-help, notification of Account Debtors, setoff or recoupment, credit bid,
deed in lieu of foreclosure, action in an Insolvency Proceeding or otherwise.


 


Environmental Laws:
Applicable Laws (including programs, permits and guidance promulgated by regulators) relating to public health (other than occupational
safety and health regulated by OSHA) or the protection or pollution of the environment, including CERCLA, RCRA and CWA.


 


Environmental Notice:
a notice (whether written or oral) from any Governmental Authority or other Person of any possible noncompliance with, investigation of
a possible violation of, litigation relating to, or potential fine or liability under any Environmental Law, or with respect to any Environmental
Release, environmental pollution or hazardous materials, including any complaint, summons, citation, order, claim, demand or request for
correction, remediation or otherwise.


 


Environmental Release:
a release as defined in CERCLA or under any other Environmental Law.


 


Equity Interest: the
interest of any (a) shareholder in a corporation; (b) partner in a partnership (whether general, limited, limited liability or joint venture);
(c) member in a limited liability company; or (d) other Person having any other form of equity security or ownership interest.


 


Equity Proceeds Holding
Account: a deposit or securities account of any Obligor (i) designated in writing by Borrower Agent to Agent as an Equity Proceeds
Holding Account, (ii) that is subject to a springing Deposit Account Control Agreement in favor of Agent at all times from and after the
time of designation as an Equity Proceeds Holding Account, (iii) the sole purpose of which is hold Net Proceeds of Equity Interests of
AOI (other than Equity Interests constituting Disqualified Equity Interests) to be used exclusively to make Investments to the extent
permitted by clause (g) of the definition of “Restricted Investment” and (iv) that does not hold at any time
from and after designation as an Equity Proceeds Holding Account any Property of any Obligor or Subsidiary thereof (other than Net Proceeds
of Equity Interests of AOI (other than Equity Interests constituting Disqualified Equity Interests) to be used exclusively to make Investments
to the extent permitted by clause (g) of the definition of “Restricted Investment”).


 


ERISA: the Employee
Retirement Income Security Act of 1974.


 


ERISA Affiliate: any
trade or business (whether or not incorporated) under common control with an Obligor within the meaning of Section 414(b) or (c) of the
Code (and Sections 414(m) and (o) of the Code for purposes of provisions relating to Section 412 of the Code).


 


ERISA Event: (a) a
Reportable Event with respect to a Pension Plan; (b) withdrawal of an Obligor or ERISA Affiliate from a Pension Plan subject to Section
4063 of ERISA during a plan year in which it was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or a cessation of
operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (c) complete or partial withdrawal of an Obligor or ERISA
Affiliate from a Multiemployer Plan or notification that a Multiemployer Plan is in reorganization; (d) filing of a notice of intent to
terminate, treatment of a Pension Plan amendment as a termination under Section 4041 or 4041A of ERISA, or institution of proceedings
by the PBGC to terminate a Pension Plan; (e) determination that a Pension Plan is considered an at-risk plan or a plan in critical or
endangered status under the Code or ERISA; (f) an event or condition that constitutes grounds under Section 4042 of ERISA for termination
of, or appointment of a trustee to administer, any Pension Plan; (g) imposition of any liability on an Obligor or ERISA Affiliate under
Title IV of ERISA, other than for PBGC premiums due but not delinquent under Section 4007 of ERISA; or (h) failure by an Obligor or ERISA
Affiliate to meet all applicable requirements under the Pension Funding Rules in respect of a Pension Plan, whether or not waived, or
to make a required contribution to a Multiemployer Plan.


 


EU Bail-In Legislation
Schedule: the EU Bail-In Legislation Schedule published by the Loan Market Association, as in effect from time to time.


 


Event of Default: as
defined in Section 11.


 


 


 


 






    	 	12	 



     


    

 


Excluded Swap Obligation:
with respect to an Obligor, each Swap Obligation as to which, and only to the extent that, such Obligor’s guaranty of or grant of
a Lien as security for such Swap Obligation is or becomes illegal under the Commodity Exchange Act because the Obligor does not constitute
an “eligible contract participant” as defined in the Commodity Exchange Act (determined after giving effect to any keepwell,
support or other agreement for the benefit of such Obligor and all guarantees of Swap Obligations by other Obligors) when such guaranty
or grant of Lien becomes effective with respect to the Swap Obligation. If a Hedging Agreement governs more than one Swap Obligation,
only the Swap Obligation(s) or portions thereof described in the foregoing sentence shall be Excluded Swap Obligation(s) for the applicable
Obligor.


 


Excluded Taxes: (a)
Taxes imposed on or measured by a Recipient’s net income (however denominated), franchise Taxes and branch profits Taxes (i) as
a result of such Recipient being organized under the laws of, or having its principal office or applicable Lending Office located in,
the jurisdiction imposing such Tax, or (ii) constituting Other Connection Taxes; (b) U.S. federal withholding Taxes imposed on amounts
payable to or for the account of a Lender with respect to its interest in a Loan or Commitment pursuant to a law in effect when the Lender
acquires such interest (except pursuant to an assignment request by Borrower Agent under Section 13.4) or changes its Lending Office,
unless the Taxes were payable to its assignor immediately prior to such assignment or to the Lender immediately prior to its change in
Lending Office; (c) Taxes attributable to a Recipient’s failure to comply with Section 5.10; and (d) U.S. federal withholding
Taxes imposed pursuant to FATCA. In no event shall “Excluded Taxes” include any withholding Tax imposed on amounts
paid by or on behalf of a foreign Obligor to a Recipient that has complied with Section 5.10.2.


 


Existing Lender: Truist
Bank.


 


Existing Loan Documentation:
all loan, collateral and related documentation among Borrowers and Existing Lender as to Debt of Borrowers to Existing Lender.


 


Extraordinary Expenses:
all costs, expenses or advances that Agent may incur during a Default or Event of Default, or during the pendency of an Insolvency Proceeding
of an Obligor, including those relating to (a) any audit, inspection, repossession, storage, repair, appraisal, insurance, manufacture,
preparation or advertising for sale, sale, collection, or other preservation of or realization upon any Collateral; (b) any action, arbitration
or other proceeding (whether instituted by or against Agent, any Lender, any Obligor, any representative of creditors of an Obligor or
any other Person) in any way relating to any Collateral (including the validity, perfection, priority or avoidability of Agent’s
Liens with respect to any Collateral), Loan Documents, Letters of Credit or Obligations, including any lender liability or other Claims;
(c) the exercise, protection or enforcement of any rights or remedies of Agent in, or the monitoring of, any Insolvency Proceeding; (d)
settlement or satisfaction of taxes, charges or Liens with respect to any Collateral; (e) any Enforcement Action; (f) negotiation and
documentation of any modification, waiver, workout, restructuring or forbearance with respect to any Loan Documents or Obligations; and
(g) Protective Advances. Such costs, expenses and advances include transfer fees, Other Taxes, storage fees, insurance costs, permit fees,
utility reservation and standby fees, legal fees, appraisal fees, brokers’ fees and commissions and auctioneers’ fees and
commissions, accountants’ fees, environmental study fees, wages and salaries paid to employees of any Obligor or independent contractors
in liquidating any Collateral, and travel expenses.


 


FATCA: Sections 1471
through 1474 of the Code (including any amended or successor version if substantively comparable and not materially more onerous to comply
with), and any agreements entered into pursuant to Section 1471(b)(1) of the Code.


 


Federal Funds Rate:
for any day, the rate per annum equal to the weighted average of the rates on overnight federal funds transactions with members of the
Federal Reserve System arranged by federal funds brokers on such day, as published by the Federal Reserve Bank on the Business Day next
succeeding such day, provided that (a) if such day is not a Business Day, the Federal Funds Rate for such day shall be such rate
on such transactions on the next preceding Business Day as so published on the next succeeding Business Day, or (b) if no such rate is
published on such next succeeding Business Day, the Federal Funds Rate for such day shall be the average rate (rounded upward, if necessary,
to a whole multiple of 1/100 of 1%) charged to the Agent or such day on such transactions, as determined by Agent, in its sole discretion;
provided, that in no event shall such rate be less than zero.


 


Fiscal Quarter: each
period of three months, commencing on the first day of a Fiscal Year.


 


 


 


 






    	 	13	 



     


    

 


Fiscal Year: the fiscal
year of Borrowers and their Subsidiaries for accounting and tax purposes, ending on December 31 of each year.


 


Fixed Charge Coverage Ratio:
the ratio, determined on a consolidated basis for Borrowers and their Subsidiaries (excluding any Subsidiary that is not an Obligor) for
the most recent twelve (12) months, of (a) EBITDA minus Capital Expenditures (except those financed with Borrowed Money other
than Revolver Loans) and cash taxes paid, to (b) Fixed Charges.


 


Fixed Charge Coverage Ratio
Measurement Period: the twelve-month period ending on the applicable date of determination.


 


Fixed Charges: with
respect to Borrowers and their Subsidiaries (excluding any Subsidiary that is not an Obligor) on a consolidated basis in accordance with
GAAP, the sum of (without duplication) (a) cash interest expense (including, for the avoidance of doubt, any Minimum Balance fees payable
pursuant to Section 3.2.3), (b) scheduled principal payments made on Borrowed Money, (c) Distributions made, (d) minimum required
contributions and other cash payments to Pension Plans required to be paid by Applicable Law and which were paid in the Ordinary Course
of Business and (e) other cash payments required to be paid by Applicable Law and which were paid in the Ordinary Course of Business.


 


Flood Laws: all Applicable
Laws relating to policies and procedures that address requirements placed on federally regulated lenders under the National Flood Insurance
Reform Act of 1994 and other Applicable Laws related thereto.


 


Floor: a per annum
rate of interest equal to 1.50%.


 


FLSA: the Fair Labor
Standards Act of 1938.


 


Foreign Lender: any
Lender that is not a U.S. Person.


 


Foreign Plan: any employee
benefit plan or arrangement (a) maintained or contributed to by any Obligor or Subsidiary that is not subject to the laws of the United
States; or (b) mandated by a government other than the United States for employees of any Obligor or Subsidiary.


 


Foreign Subsidiary:
a Subsidiary that is a formed outside the laws of the United States, any State therein, or the District of Columbia, including a CFC.


 


FRB: the Board of Governors
of the Federal Reserve System of the United States.


 


Fronting Exposure:
a Defaulting Lender’s interest in LC Obligations, Swingline Loans and Protective Advances, except to the extent Cash Collateralized
by the Defaulting Lender or allocated to other Lenders hereunder.


 


Full Payment: with
respect to any Obligations, (a) the full and indefeasible cash payment thereof, including any interest, fees and other charges accruing
during an Insolvency Proceeding (whether or not allowed in the proceeding); and (b) if such Obligations are LC Obligations or inchoate
or contingent in nature, Cash Collateralization thereof (or delivery of a standby letter of credit acceptable to Agent in its discretion,
in the amount of required Cash Collateral). No Loans shall be deemed to have been paid in full unless all Commitments related to such
Loans are terminated.


 


GAAP: generally accepted
accounting principles in effect in the United States from time to time.


 


Governmental Approvals:
all authorizations, consents, approvals, licenses and exemptions of, registrations and filings with, and required reports to, all Governmental
Authorities.


 


 


 






    	 	14	 



     


    

 


Governmental Authority:
any federal, state, local, foreign or other agency, authority, body, commission, court, instrumentality, political subdivision, central
bank, or other entity or officer exercising executive, legislative, judicial, taxing, regulatory or administrative powers or functions
for any governmental, judicial, investigative, regulatory or self-regulatory authority (including the Financial Conduct Authority, the
Prudential Regulation Authority and any supra-national bodies such as the European Union or European Central Bank).


 


Guaranteed Obligations:
as defined in Section 15.1.


 


Guarantor Payment:
as defined in Section 5.11.3.


 


Guarantors: each Person
that guarantees payment or performance of any portion of or all Obligations.


 


Guaranty: the guaranty
provided by each Guarantor hereunder and each other guaranty agreement executed by a Guarantor in favor of Agent.


 


Hedging Agreement:
a “swap agreement” as defined in Bankruptcy Code Section 101(53B)(A).


 


Indemnified Taxes:
(a) Taxes, other than Excluded Taxes, imposed on or relating to any payment of an Obligation; and (b) to the extent not otherwise described
in clause (a), Other Taxes.


 


Indemnitees: Agent
Indemnitees, Lender Indemnitees, Issuing Bank Indemnitees and CNC Indemnitees.


 


Insolvency Proceeding:
any case or proceeding commenced by or against a Person under any state, federal or foreign law for, or any agreement of such Person to,
(a) the entry of an order for relief under the Bankruptcy Code, or any other insolvency, debtor relief or debt adjustment law; (b) the
appointment of a receiver, trustee, liquidator, administrator, conservator or other custodian for such Person or any part of its Property;
or (c) an assignment or trust mortgage for the benefit of creditors.


 


Intellectual Property:
all intellectual and similar Property of a Person, including inventions, designs, patents, copyrights, trademarks, service marks, trade
names, trade secrets, confidential or proprietary information, customer lists, know-how, software and databases; all embodiments or fixations
thereof and all related documentation, applications, registrations and franchises; all licenses or other rights to use any of the foregoing;
and all books and records relating to the foregoing.


 


Intellectual Property Claim:
any claim or assertion (whether in writing, by suit or otherwise) that an Obligor’s or Subsidiary’s ownership, use, marketing,
sale or distribution of any Inventory, Equipment, Intellectual Property or other Property violates another Person’s Intellectual
Property.


 


Interest Expense: with
reference to any period, the cash interest expense (net of cash interest income) of Borrowers and Subsidiaries (other than Subsidiaries
that are not Obligors) calculated on a consolidated basis for such period in accordance with GAAP.


 


Interest Income: for
any period, the cash interest income of Borrowers and Subsidiaries (other than Subsidiaries that are not Obligors) for such period determined
on a consolidated basis in accordance with GAAP.


 


Inventory: as defined
in the UCC, including all goods intended for sale, lease, display or demonstration; all work in process; and all raw materials, and other
materials and supplies of any kind that are or could be used in connection with the manufacture, printing, packing, shipping, advertising,
sale, lease or furnishing of such goods, or otherwise used or consumed in an Obligor’s business (but excluding Equipment).


 


Inventory Formula Amount:
the lesser of (x) up to 75% of the Value of Eligible Inventory; or (y) up to 85% of the NOLV Percentage of the Value of Eligible
Inventory.


 


 


 






    	 	15	 



     


    

 


Inventory Reserve:
reserves established by Agent to reflect factors that may negatively impact the Value of Inventory, including change in salability, obsolescence,
seasonality, theft, shrinkage, imbalance, change in composition or mix, markdowns and vendor chargebacks.


 


Investment: an Acquisition,
an acquisition of record or beneficial ownership of any Equity Interests of a Person, or an advance or capital contribution to or other
investment in a Person.


 


Investment Grade Account:
any Account that is owing by an Investment Grade Account Debtor.


 


Investment Grade Account
Debtor: an Account Debtor whose unsecured debt instruments carry, as of the date of determination, a rating of "BBB-" or
better by S&P or "Baa3" or better by Moody's.


 


IP Assignment: a collateral
assignment or security agreement pursuant to which an Obligor grants a Lien on its Intellectual Property to Agent, as security for the
Obligations.


 


IRS: the United States
Internal Revenue Service.


 


Issuing Bank: a Person
described in Section 2.3.1 or any replacement-issuer appointed pursuant to Section 2.3.4.


 


Issuing Bank Indemnitees:
Issuing Bank and its officers, directors, employees, Affiliates, agents and attorneys.


 


LC Application: an
application by Borrower Agent to Issuing Bank for issuance of a Letter of Credit, in form and substance satisfactory to Issuing Bank and
Agent.


 


LC Conditions: upon
giving effect to issuance of a Letter of Credit, (a) the conditions in Section 6 are satisfied; (b) total LC Obligations
do not exceed the Letter of Credit Subline and Revolver Usage does not exceed the Borrowing Base; (c) the Letter of Credit and payments
thereunder are denominated in Dollars or other currency satisfactory to Agent and Issuing Bank; and (d) the purpose and form of the
Letter of Credit are satisfactory to Agent and Issuing Bank in their discretion.


 


LC Documents: all documents,
instruments and agreements (including LC Requests and LC Applications) delivered by Borrowers or any other Person to Issuing Bank or Agent
in connection with any Letter of Credit.


 


LC Obligations: all
outstanding obligations incurred by Agent and Lenders at the request of any Borrower, whether direct or indirect, contingent or otherwise,
due or not due, in connection with the issuance of Letters of Credit by any Issuing Bank or the purchase of a participation as set forth
in Section 2.3.2 with respect to any Letter of Credit. The amount of such LC Obligations shall equal the maximum amount that
may be payable by Agent or Lenders in respect of all outstanding Letter of Credit and, without duplication, Letter of Credit Guarantees,
plus all unreimbursed amounts with respect to drawings thereon.


 


LC Request: a request
for issuance of a Letter of Credit, to be provided by Borrower Agent to Issuing Bank, in form satisfactory to Agent and Issuing Bank.


 


Lender Indemnitees:
Lenders and Secured Bank Product Providers, and their officers, directors, employees, Affiliates, agents and attorneys.


 


Lenders: lenders party
to this Agreement (including Agent in its capacity as provider of Swingline Loans) and any Person who hereafter becomes a “Lender”
pursuant to an Assignment, including any Lending Office of the foregoing.


 


 


 






    	 	16	 



     


    

 


Lending Office: the
office (including any domestic or foreign Affiliate or branch) designated as such by a Lender or Issuing Bank by notice to Agent and Borrower
Agent.


 


Letter of Credit: any
standby or documentary letter of credit, foreign guaranty, documentary bankers' acceptance, indemnity, reimbursement agreement or similar
instrument issued by Issuing Bank for the account or benefit of a Borrower or Affiliate of a Borrower, for which Agent and Lenders have
incurred LC Obligations.


 


Letter of Credit Guaranty:
as defined in Section 2.3.1.


 


Letter of Credit Subline:
$2,000,000.


 


License: any license
or agreement under which an Obligor is authorized to use Intellectual Property in connection with any manufacture, marketing, distribution
or disposition of Collateral, any use of Property or any other conduct of its business.


 


Licensor: any Person
from whom an Obligor obtains the right to use any Intellectual Property.


 


Lien: a Person’s
interest in Property securing an obligation owed to, or a claim by, such Person, including any lien, security interest, pledge, hypothecation,
assignment, trust, reservation, easement, right-of-way, restriction, lease, or other title exception or encumbrance.


 


Lien Waiver: an agreement,
in form and substance satisfactory to Agent, by which (a) for any material Collateral located on leased premises, the lessor waives or
subordinates any Lien it may have on the Collateral, and agrees to permit Agent to enter upon the premises and remove the Collateral or
to use the premises to store or dispose of the Collateral (provided, however, that a Lien Waiver shall not be required with
respect to the leased premises of AOI located at 3305 Breckinridge Blvd., Suite 112, Duluth, GA 30096 so long as such location does not
contain any material Collateral; provided, further, that any Inventory at such location shall not constitute Eligible Inventory
unless otherwise agreed by Agent in its sole discretion); (b) for any Collateral held by a warehouseman, processor, shipper, customs broker
or freight forwarder, such Person waives or subordinates any Lien it may have on the Collateral, agrees to hold any Documents in its possession
relating to the Collateral as agent for Agent, and agrees to deliver the Collateral to Agent upon request; (c) for any Collateral held
by a repairman, mechanic or bailee, such Person acknowledges Agent’s Lien, waives or subordinates any Lien it may have on the Collateral,
and agrees to deliver the Collateral to Agent upon request; and (d) for any Collateral subject to a Licensor’s Intellectual Property
rights, the Licensor grants to Agent the right, vis-à-vis such Licensor, to enforce Agent’s Liens with respect to the Collateral,
including the right to dispose of it with the benefit of the Intellectual Property, whether or not a default exists under any applicable
License.


 


Loan: a Revolver Loan
or other loan made under the terms of this Agreement.


 


Loan Documents: this
Agreement, Other Agreements and Security Documents.


 


Loan Year: each 12
month period commencing on the Closing Date or an anniversary thereof.


 


Margin Stock: as defined
in Regulation U of the Board of Governors.


 


Material Adverse Effect:
the effect of any event or circumstance that, taken alone or in conjunction with other events or circumstances, (a) has or could be reasonably
expected to have a material adverse effect on the business, operations, Properties, prospects or condition (financial or otherwise) of
any Obligor, on the value of any material Collateral, on the enforceability of any Loan Documents, or on the validity or priority of Agent’s
Liens on any Collateral; (b) impairs the ability of an Obligor to perform its obligations under the Loan Documents, including repayment
of any Obligations; or (c) otherwise impairs the ability of Agent or any Lender to enforce or collect any Obligations or to realize upon
any Collateral.


 


 


 






    	 	17	 



     


    

 


Material Contract:
any agreement or arrangement to which an Obligor or Subsidiary is party (other than the Loan Documents) (a) that is deemed to be a material
contract under any securities law applicable to such Person, including the Securities Act of 1933; (b) for which breach, termination,
nonperformance or failure to renew could reasonably be expected to have a Material Adverse Effect; (c) that is a Material Customer Contract
(including, for the avoidance of doubt, any purchase order issued thereunder) or (d) that relates to any Subordinated Debt, the Convertible
Notes or to other Debt in an aggregate amount of $1,000,000 or more.


 


Material Customer:
those customers of the Borrowers set forth on Schedule 1.1(b) of the Disclosure Certificate.


 


Material Customer Contract:
any agreement (including any memorandum of understanding) by and among a Borrower and any Material Customer, together with all purchase
orders, schedules, exhibits, annexes, or other attachments thereto, as amended, restated, amended and restated, replaced (including with
any replacement “definitive agreement” entered into to supersede any memorandum of understanding between a Borrower and a
Material Customer), supplemented or otherwise modified from time to time.


 


Minimum Balance: $10,000,000.


 


Monthly Period: a period
that commences on (and includes) the first day of any calendar month (or in the case of the calendar month in which the Closing Date occurs,
such period shall commence on the Closing Date) and ends on (and includes) the last day of such calendar month.


 


Moody’s: Moody’s
Investors Service, Inc. or any successor acceptable to Agent.


 


Multiemployer Plan:
any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which an Obligor or ERISA Affiliate makes or is obligated
to make contributions, or during the preceding five plan years, has made or been obligated to make contributions.


 


Multiple Employer Plan:
a Plan that has two or more contributing sponsors, including an Obligor or ERISA Affiliate, at least two of whom are not under common
control, as described in Section 4064 of ERISA.


 


Net Income: for any
period for Borrowers and Subsidiaries on a consolidated basis, the net income of Borrowers and Subsidiaries for such period as determined
in accordance with GAAP, provided that there shall be excluded from Net Income (a) the income (or deficit) of any Person (other
than any Obligor) in which a Borrower or any of its Subsidiaries has an ownership interest, (b) the undistributed earnings of any Subsidiary
of the Borrower to the extent that the declaration of payment or dividends or similar distributions by such Subsidiary is not at the time
permitted by the terms of any contractual obligation, governing document or Applicable Law applicable to such Subsidiary, (c) the income
(or deficit) of any Subsidiary of a Borrower that is not an Obligor and (d) any income resulting from the cancellation or early extinguishment
of indebtedness.


 


Net Intercompany Receivables:
an amount (not less than zero) at any time of determination equal to (a) the aggregate amount of intercompany accounts receivable due
from any Subsidiary that is not an Obligor, on the one hand, to any Obligor, on the other hand minus (b) the aggregate amount of
intercompany accounts receivable due from any Obligor, on the one hand, to any Subsidiary that is not an Obligor, on the other hand, in
each case as calculated in accordance with historical past practices of the Obligors and their Subsidiaries.


 


Net Orderly Liquidation
Value: with respect to Eligible Inventory, the cash proceeds of property of an Obligor, which would be obtained in an orderly liquidation
(net of all liquidation expenses, costs of sale, operating expenses and retrieval and related costs), as determined pursuant to the most
recent Eligible Inventory Appraisal delivered to Agent hereunder.


 


Net Proceeds: with
respect to an Asset Disposition, proceeds (including, when received, any deferred or escrowed payments) received by an Obligor or Subsidiary
in cash from such disposition, net of (a) reasonable and customary costs and expenses actually incurred in connection therewith, including
legal fees and sales commissions; (b) amounts applied to repayment of Debt secured by a Permitted Lien senior to Agent’s Liens on
Collateral sold; (c) transfer or similar taxes; and (d) reserves for indemnities, until such reserves are no longer needed.


 


 


 






    	 	18	 



     


    

 


NOLV Percentage: the
Net Orderly Liquidation Value of Inventory, expressed as a percentage of the Value of Eligible Inventory, expected to be realized at an
orderly, negotiated sale held within a reasonable period of time, net of all liquidation expenses, as determined from the most recent
appraisal of Borrowers’ Inventory performed by an appraiser and on terms satisfactory to Agent.


 


Notice of Borrowing:
a request by Borrower Agent for a Borrowing of Revolver Loans in accordance with Section 4.1.1.


 


Obligations: all (a) principal
of and premium, if any, on the Loans, (b) LC Obligations and other obligations of Obligors with respect to Letters of Credit, (c) interest,
expenses, fees, indemnification obligations, Extraordinary Expenses and other amounts payable by Obligors under Loan Documents, (d) Secured
Bank Product Obligations, and (e) other Debts, obligations and liabilities of any kind owing by Obligors pursuant to the Loan Documents,
whether now existing or hereafter arising, whether evidenced by a note or other writing, whether allowed in any Insolvency Proceeding,
whether arising from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise,
and whether direct or indirect, absolute or contingent, due or to become due, primary or secondary, or joint or several; provided,
that Obligations of an Obligor shall not include its Excluded Swap Obligations.


 


Obligor: each Borrower,
Guarantor or other Person that is liable for payment of any Obligations or that has granted a Lien on its assets in favor of Agent to
secure any Obligations.


 


OFAC: Office of Foreign
Assets Control of the U.S. Treasury Department.


 


Ordinary Course of Business:
the ordinary course of business of any Borrower or Subsidiary, undertaken in good faith and consistent with Applicable Law and past practices.


 


Organic Documents:
with respect to any Person, its charter, certificate or articles of incorporation, bylaws, articles of organization, limited liability
agreement, operating agreement, members agreement, shareholders agreement, partnership agreement, certificate of partnership, certificate
of formation, voting trust agreement, or similar agreement or instrument governing the formation or operation of such Person.


 


OSHA: the Occupational
Safety and Hazard Act of 1970.


 


Other Agreement: each
fee letter, Lien Waiver, Borrowing Base Report, Compliance Certificate, Disclosure Certificate or other note, document, instrument or
agreement (other than this Agreement or a Security Document) now or hereafter delivered by an Obligor or other Person to Agent or a Lender
in connection with any transactions relating hereto.


 


Other Connection Taxes:
Taxes imposed on a Recipient due to a present or former connection between it and the taxing jurisdiction (other than connections arising
from the Recipient having executed, delivered, become party to, performed obligations or received payments under, received or perfected
a Lien or engaged in any other transaction pursuant to, enforced, or sold or assigned an interest in, any Loan or Loan Document).


 


Other Taxes: all present
or future stamp, court, documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution,
delivery, performance, enforcement or registration of, from the receipt or perfection of a Lien under, or otherwise with respect to, any
Loan Document, except Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section
13.4(c)).


 


Participant: as defined
in Section 13.2.


 


Patriot Act: the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. No. 107-56,
115 Stat. 272 (2001).


 


 


 






    	 	19	 



     


    

 


Payment Conditions:
with respect to any proposed Distribution or Investment,


 


(a)       no Event of Default
has occurred and is continuing or would result from the making of such proposed Distribution or Investment;


 


(b)       Borrowers
have delivered to Agent the unqualified audited financial statements of Borrowers and their Subsidiaries on a consolidated basis for the
Fiscal Year preceding the proposed date of the proposed Distribution or Investment, which shall not be earlier than the Fiscal Year ended
in December 31, 2022, which are reasonably satisfactory to Agent;


 


(c)       after
giving effect to the proposed Distribution or Investment, each of (i) Availability as of such date, calculated on a pro forma basis, (ii)
Average Availability (calculated on a pro forma basis as though such Distribution or Investment was made on the first day of such period),
and (iii) Average Projected Availability (calculated to give effect to such Distribution or Investment on the date that such Distribution
or Investment is to be made), is in excess of $7,000,000;


 


(d)       the Fixed Charge
Coverage for the most recently ended 12-month period, calculated on a pro forma basis to give effect to such Distribution or Investment
as though it were made on the first day of the relevant testing period is not less than 1.25:1.00; and


 


(e)       Borrowers have delivered
a certificate to Agent certifying that all of conditions in the foregoing subclauses (a) through (d) have been satisfied.


 


Payment Item: each
check, draft or other item of payment payable to a Borrower, including those constituting proceeds of any Collateral.


 


PBGC: the Pension Benefit
Guaranty Corporation.


 


Pension Funding Rules:
Code and ERISA rules regarding minimum required contributions (including installment payments) to Pension Plans set forth in, for plan
years ending prior to the Pension Protection Act of 2006 effective date, Section 412 of the Code and Section 302 of ERISA, both as in
effect prior to such act, and thereafter, Sections 412, 430, 431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA.


 


Pension Plan: any employee
pension benefit plan (as defined in Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and
is sponsored or maintained by any Obligor Subsidiary or ERISA Affiliate or to which the Obligor or ERISA Affiliate contributes or has
an obligation to contribute, or in the case of a Multiple Employer or other plan described in Section 4064(a) of ERISA, has made contributions
at any time during the preceding five plan years.


 


Periodic Term SOFR Determination
Day: as defined in the definition of Term SOFR.


 


Permitted Asset Disposition:
(a) as long as all Net Proceeds are remitted to the Dominion Account, an Asset Disposition that is a sale of Inventory in the Ordinary
Course of Business; (b) as long as no Default or Event of Default exists and all Net Proceeds are remitted to the Dominion Account, an
Asset Disposition that is (i) a disposition of Inventory that is obsolete, unmerchantable or otherwise unsalable in the Ordinary Course
of Business; (ii) termination of a lease of real or personal Property that is not necessary for the Ordinary Course of Business, could
not reasonably be expected to have a Material Adverse Effect and does not result from an Obligor’s default; or (iii) approved in
writing by Agent and Required Lenders, (c) the Transceiver Sale, (d) Permitted Sale and Leaseback Transactions, (e) an Asset Disposition
of other assets not to exceed $2,000,000 in any Fiscal Year, as long as (i) no Default or Event of Default exists or would result therefrom,
(ii) all Net Proceeds are remitted to the Dominion Account for application to the Obligations in accordance with the Loan Documents, (iii)
such Asset Disposition(s) are made at fair market value and (iv) the consideration therefor is solely in the form of cash and (f) any
Asset Disposition by a Foreign Subsidiary.


 


 


 






    	 	20	 



     


    

 


Permitted Contingent Obligations:
Contingent Obligations (a) arising from endorsements of Payment Items for collection or deposit in the Ordinary Course of Business; (b)
arising from Hedging Agreements permitted hereunder; (c) existing on the Closing Date, and any extension or renewal thereof that does
not increase the amount of such Contingent Obligation when extended or renewed; (d) incurred in the Ordinary Course of Business with respect
to surety, appeal or performance bonds, or other similar obligations; (e) arising from customary indemnification obligations in favor
of purchasers in connection with dispositions of Inventory or Equipment permitted hereunder; (f) arising under the Loan Documents; or
(g) in an aggregate amount of $250,000 or less at any time.


 


Permitted Discretion:
a determination made in the exercise, in good faith, of reasonable business judgment (from the perspective of a secured, asset-based lender).


 


Permitted Distributions:
(a) Distributions made after the completion of the first Loan Year by AOI to the holders of its Equity Interests, so long as, and to the
extent that, after giving effect to the making of any such Distribution, the Payment Conditions are satisfied and (b) Distributions to
the extent made solely with the Net Proceeds of capital contributions by the holders of Equity Interests of AOI or the issuance of new
Equity Interests (not constituting Disqualified Equity Interests) by AOI, in each case the Net Proceeds of which are received by AOI substantially
concurrently with the making of any such Distribution by AOI and are not otherwise applied for any purpose under the Loan Documents.


 


Permitted Lien: as
defined in Section 10.2.2. The designation of a Lien as a “Permitted Lien” shall not limit or restrict the ability
of Agent to establish an Availability Reserve relating thereto.


 


Permitted Purchase Money
Debt: Purchase Money Debt of Obligors and Subsidiaries that is unsecured or secured only by a Purchase Money Lien, as long as the
aggregate amount does not exceed $6,000,000 at any time and its incurrence does not violate Section 10.2.3.


 


“Permitted Sale and
Leaseback Transaction” means any Sale and Leaseback Transaction consummated by any Borrower or a Subsidiary after the Closing
Date; provided that (a) any lease obligations arising in connection therewith are deemed Purchase Money Debt (in the amount of
all Attributable Debt incurred in connection with such Sale and Leaseback Transaction) and are permitted under Section 10.2.1(c),
(b) any Liens arising in connection therewith (including Liens deemed to arise in connection with any such lease obligations) are deemed
Purchase Money Liens and are permitted under Section 10.2.2(b) and (c) all Net Proceeds of such Sale and Leaseback Transaction
are remitted to the Dominion Account for application to the Obligations in accordance with the Loan Documents.


 


Person: any individual,
corporation, limited liability company, partnership, joint venture, association, trust, unincorporated organization, Governmental Authority
or other entity.


 


Plan: an employee benefit
plan (as defined in Section 3(3) of ERISA) maintained for employees of an Obligor or ERISA Affiliate, or to which an Obligor or ERISA
Affiliate is required to contribute on behalf of its employees.


 


Platform: as defined
in Section 14.3.3.


 


Prepayment Fee: subject
to Sections 2.1.4(a) and 2.1.4(b), a fee payable to Agent, for the benefit of the applicable Lenders, in the following amount:


 


	Period during which early termination or reduction occurs	Revolver Loan Prepayment Fee
	On or prior to the first anniversary of the date of this Agreement	3% of the aggregate Revolver Commitments terminated or reduced pursuant to Sections 2.1.4(a) or 2.1.4(b).
	After the first anniversary of the date of this Agreement but on or prior to the second anniversary of the date of this Agreement	2% of the aggregate Revolver Commitments terminated or reduced pursuant to Sections 2.1.4(a) or 2.1.4(b).
	After the second anniversary of the date of this Agreement but on or prior to the date that is 30 months after the Closing Date	1% of the aggregate Revolver Commitments terminated or reduced pursuant to Sections 2.1.4(a) or 2.1.4(b)
	After the date that is 30 months after the Closing Date	0% of the aggregate Revolver Commitments terminated or reduced pursuant to Sections 2.1.4(a) or 2.1.4(b)


 


 


 






    	 	21	 



     


    

 


Pro Rata: with respect
to any Lender, a percentage (rounded to the ninth decimal place) determined (a) by dividing the amount of such Lender's Revolver
Commitment by the aggregate outstanding Revolver Commitments; or (b) following termination of the Revolver Commitments, by dividing
the amount of such Lender's Loans and LC Obligations by the aggregate outstanding Loans and LC Obligations or, if all Loans and LC Obligations
have been paid in full and/or Cash Collateralized, by dividing such Lender's and its Affiliates' remaining Obligations by the aggregate
remaining Obligations.


 


Properly Contested:
with respect to any obligation of an Obligor, (a) the obligation is subject to a bona fide dispute regarding amount or the Obligor’s
liability to pay; (b) the obligation is being properly contested in good faith by appropriate proceedings promptly instituted and diligently
pursued; (c) appropriate reserves have been established in accordance with GAAP; (d) non-payment could not have a Material Adverse Effect,
nor result in forfeiture or sale of any assets of the Obligor; (e) no Lien is imposed on assets of the Obligor, unless bonded and stayed
to the satisfaction of Agent; and (f) if the obligation results from entry of a judgment or other order, such judgment or order is stayed
pending appeal or other judicial review.


 


Property: any interest
in any kind of property or asset, whether real, personal or mixed, or tangible or intangible.


 


Protective Advances:
as defined in Section 2.1.5.


 


Purchase Money Debt:
(a) Debt (other than the Obligations) for payment of any of the purchase price of fixed assets; (b) Debt (other than the Obligations)
incurred within 10 days before or after acquisition of any fixed assets, for the purpose of financing any of the purchase price thereof;
and (c) any renewals, extensions or refinancings (but not increases) thereof.


 


Purchase Money Lien:
a Lien that secures Purchase Money Debt, encumbering only the fixed assets acquired with such Debt and constituting a Capital Lease or
a purchase money security interest under the UCC.


 


Qualified Cash: unrestricted
cash of the Borrowers located in the United States in which Agent has a first priority perfected Lien pursuant to a Deposit Account Control
Agreement and that is subject to no other Liens.


 


Qualified ECP: an Obligor
with total assets exceeding $10,000,000, or that constitutes an “eligible contract participant” under the Commodity Exchange
Act and can cause another Person to qualify as an “eligible contract participant” under Section 1a(18)(A)(v)(II) of the Commodity
Exchange Act.


 


RCRA: the Resource
Conservation and Recovery Act (42 U.S.C. §§ 6991-6991i).


 


Real Estate: all right,
title and interest (whether as owner, lessor or lessee) in any real Property or any buildings, structures, parking areas or other improvements
thereon (including Fixtures).


 


Recipient: Agent, Issuing
Bank, any Lender or any other recipient of a payment to be made by an Obligor under a Loan Document or on account of an Obligation.


 


Refinancing Conditions:


 


(a) with respect
to the Convertible Notes (or any Refinancing Debt with respect thereto), (i) the Refinancing Debt is in an aggregate principal amount
that does not exceed the principal amount of the Debt being extended, renewed or refinanced; (ii) it has a final maturity no sooner than
and a weighted average life no less than, the Debt being extended, renewed or refinanced; (iii) if applicable, it is subordinated to the
Obligations at least to the same extent as the Debt being extended, renewed or refinanced; (iv) the representations, covenants and defaults
applicable to it are no less favorable to Borrowers than those applicable to the Debt being extended, renewed or refinanced; (v) the Refinancing
Debt with respect thereto is unsecured and no Lien is granted to secure it; (vi) no additional Person that is an Obligor is obligated
on such Debt; and (vii) upon giving effect to it, no Default or Event of Default exists; and


 


 


 






    	 	22	 



     


    

 


(b) with respect
to all other Debt (or any Refinancing Debt with respect thereto), (i) the Refinancing Debt is in an aggregate principal amount that does
not exceed the principal amount of the Debt being extended, renewed or refinanced; (ii) it has a final maturity no sooner than, a weighted
average life no less than, and an interest rate no greater than, the Debt being extended, renewed or refinanced; (iii) it is subordinated
to the Obligations at least to the same extent as the Debt being extended, renewed or refinanced; (iv) the representations, covenants
and defaults applicable to it are no less favorable to Borrowers than those applicable to the Debt being extended, renewed or refinanced;
(v) no additional Lien is granted to secure it; (vi) no additional Person is obligated on such Debt; and (vii) upon giving effect to it,
no Default or Event of Default exists.


 


Refinancing Debt: Borrowed
Money that is the result of an extension, renewal or refinancing of Debt permitted under Section 10.2.1(b), (c), (d),
(f) or (i).


 


Relevant Governmental Body:
the FRB or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the FRB or the Federal Reserve Bank
of New York, or any successor thereto.


 


Rent and Charges Reserve:
the aggregate of (a) all past due rent and other amounts owing by an Obligor to any landlord, warehouseman, processor, repairman, mechanic,
shipper, freight forwarder, broker or other Person who possesses any Collateral or could assert a Lien on any Collateral; and (b) a reserve
at least equal to three months rent and other charges that could be payable to any such Person, unless it has executed a Lien Waiver.


 


Report: as defined
in Section 12.2.3.


 


Reportable Event: any
event set forth in Section 4043(c) of ERISA, other than an event for which the 30 day notice period has been waived.


 


Required Lenders: Secured
Parties holding more than 50% of (a) the aggregate outstanding Revolver Commitments; or (b) after termination of the Revolver
Commitments, the aggregate outstanding Loans and LC Obligations or, upon Full Payment of all Loans and LC Obligations, the aggregate remaining
Obligations; provided, however, (i) that Commitments, Loans and other Obligations held by any Defaulting Lender and
its Affiliates shall be disregarded in making such calculation, but any related Fronting Exposure shall be deemed held as a Loan or LC
Obligation by the Lender that funded the applicable Loan or issued the applicable Letter of Credit or Letter of Credit Guaranty, and (ii) at
any time there are two (2) or more Secured Parties, "Required Lenders" must include at least two (2) Secured Parties who are
not Affiliates of one another).


 


Restricted Investment:
any Investment by an Obligor or Subsidiary, other than (a) Investments in Subsidiaries to the extent existing on the Closing Date; (b)
Cash Equivalents that are subject to Agent’s Lien and control, pursuant to documentation in form and substance satisfactory to Agent;
(c) loans and advances permitted under Section 10.2.7; (d) to the extent constituting an Investment, the Transceiver Sale Holdback
Amount, (e) any Investment made after the completion of the first Loan Year, so long as, and to the extent that, after giving effect to
the making of any such Investment, the Payment Conditions are satisfied, (f) the purchase by any Obligor or Subsidiary, collectively,
of no more than 10% of the total Equity Interests of Yuhan Optoelectronic Technology (Shanghai) Co., Ltd. in connection with the Transceiver
Sale and (g) Investments made by AOI to any non-Obligor Subsidiary to the extent funded exclusively with Net Proceeds of issuances of
Equity Interests of AOI (other than Equity Interests constituting Disqualified Equity Interests), so long as, prior to the making of any
such Investment (i) such Net Proceeds are maintained at all times in an Equity Proceeds Holding Account of AOI that is subject to a springing
Deposit Account Control Agreement in favor of Agent and (ii) such Net Proceeds are not commingled at any time with any other Property
of any Obligor or Subsidiary thereof.


 


Restrictive Agreement:
an agreement (other than a Loan Document) that conditions or restricts the right of any Borrower, Subsidiary or other Obligor to incur
or repay Borrowed Money, to grant Liens on any assets, to declare or make Distributions, to modify, extend or renew any agreement evidencing
Borrowed Money, or to repay any intercompany Debt.


 


Revolver Commitment:
for any Lender, its obligation to make Revolver Loans and to participate in LC Obligations up to the maximum principal amount shown on
Schedule 1.1(a) of the Disclosure Certificate, as hereafter modified pursuant to Section 2.1.4 or Assignment to which it
is a party. "Revolver Commitments" means the aggregate amount of such commitments of all Lenders.


 


 


 






    	 	23	 



     


    

 


Revolver Loan: any
loan made pursuant to Section 2.1 or as a Swingline Loan.


 


Revolver Termination Date:
the earlier to occur of (a) November 16, 2025 and (b) 91 days prior to the maturity of the Convertible Notes, or, in each case, such earlier
date on which the Revolver Commitments terminate hereunder. For the avoidance of doubt, as of the Closing Date, clause (b) of this definition
shall be deemed a reference to December 14, 2023, which is 91 days prior to the maturity date of the Convertible Notes (which, as of the
Closing Date, is March 15, 2024).


 


Revolver Usage: (a) the
aggregate amount of outstanding Revolver Loans; plus (b) the aggregate Stated Amount of outstanding Letters of Credit, except
to the extent Cash Collateralized by Borrowers.


 


S&P: Standard &
Poor’s Financial Services LLC, a subsidiary of The McGraw-Hill Companies, Inc., or any successor acceptable to Agent.


 


Sale and Leaseback Transaction:
any transaction or series of related transactions pursuant to which a Borrower or Subsidiary (a) sells, transfers or otherwise disposes
of any property, real or personal, whether now owned or hereafter acquired, and (b) as part of such transaction, thereafter rents or leases
such property or other property that it intends to use for substantially the same purpose or purposes as the property being sold, transferred
or disposed.


 


Sanction: any sanction
administered or enforced by the U.S. Government (including OFAC), United Nations Security Council, European Union, Her Majesty’s
Treasury or other sanctions authority.


 


Secured Bank Product Obligations:
Debt, obligations and other liabilities with respect to Bank Products owing by an Obligor or Subsidiary to a Secured Bank Product Provider);
provided, that Secured Bank Product Obligations of an Obligor shall not include its Excluded Swap Obligations.


 


Secured Bank Product Provider:
(a) the Bank, the Agent and any of their respective Affiliates; and (b) any other Lender or Affiliate of a Lender that is providing a
Bank Product, provided such provider delivers written notice to Agent, in form and substance satisfactory to Agent, within 10 days following
the later of the Closing Date or creation of the Bank Product, (i) describing the Bank Product and setting forth the maximum amount to
be secured by the Collateral and the methodology to be used in calculating such amount, and (ii) agreeing to be bound by Section 12.13.


 


Secured Parties: Agent,
Issuing Bank, Lenders and Secured Bank Product Providers.


 


Security Documents:
the Guaranties, IP Assignments, Deposit Account Control Agreements, and all other documents, instruments and agreements now or hereafter
securing (or given with the intent to secure) any Obligations.


 


Senior Officer: the
chairman of the board, president, chief executive officer or chief financial officer of a Borrower or, if the context requires, an Obligor.


 


Settlement Report:
a report summarizing Revolver Loans and participations in LC Obligations outstanding as of a given settlement date, allocated to Lenders
on a Pro Rata basis in accordance with their Revolver Commitments.


 


SOFR: a rate equal
to the secured overnight financing rate as administered by the SOFR Administrator.


 


SOFR Administrator:
the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).


 


SOFR Loan: each portion
of a Revolving Loan that bears interest at a rate determined by reference to Adjusted Term SOFR.


 


 


 






    	 	24	 



     


    

 


Solvent: as to any
Person, such Person (a) owns Property whose fair salable value is greater than the amount required to pay all of its debts (including
contingent, subordinated, unmatured and unliquidated liabilities); (b) owns Property whose present fair salable value (as defined below)
is greater than the probable total liabilities (including contingent, subordinated, unmatured and unliquidated liabilities) of such Person
as they become absolute and matured; (c) is able to pay all of its debts as they mature; (d) has capital that is not unreasonably small
for its business and is sufficient to carry on its business and transactions and all business and transactions in which it is about to
engage; (e) is not “insolvent” within the meaning of Section 101(32) of the Bankruptcy Code; and (f) has not incurred (by
way of assumption or otherwise) any obligations or liabilities (contingent or otherwise) under any Loan Documents, or made any conveyance
in connection therewith, with actual intent to hinder, delay or defraud either present or future creditors of such Person or any of its
Affiliates. “Fair salable value” means the amount that could be obtained for assets within a reasonable time, either
through collection or through sale under ordinary selling conditions by a capable and diligent seller to an interested buyer who is willing
(but under no compulsion) to purchase.


 


Specified Obligor:
an Obligor that is not then an “eligible contract participant” under the Commodity Exchange Act (determined prior to giving
effect to Section 5.11).


 


Stated Amount: the
outstanding amount of a Letter of Credit, including any automatic increase or tolerance (whether or not then in effect) provided by the
Letter of Credit or related LC Documents.


 


Subordinated Debt:
any Debt incurred by an Obligor that is expressly subordinate and junior in right of payment to Full Payment of all Obligations, and is
on terms (including maturity, interest, fees, repayment, covenants and subordination) satisfactory to Agent, and, if applicable, the Liens
as to any Collateral securing such Debt have been subordinated to the Liens therein of Agent pursuant to documentation in form and substance
satisfactory to Agent, in its sole discretion.


 


Subsidiary: any entity
at least 50% of whose voting securities or Equity Interests is owned by an Obligor or combination of Obligors (including indirect ownership
through other entities in which an Obligor directly or indirectly owns 50% of the voting securities or Equity Interests).


 


Super-Majority Lenders:
Secured Parties holding more than 66.75% of (a) the aggregate outstanding Revolver Commitments; or (b) after termination of
the Revolver Commitments, the aggregate outstanding Loans and LC Obligations or, upon Full Payment of all Loans and LC Obligations, the
aggregate remaining Obligations; provided, however, (i) that Commitments, Loans and other Obligations held by a Defaulting
Lender and its Affiliates shall be disregarded in making such calculation, but any related Fronting Exposure shall be deemed held as a
Loan or LC Obligation by the Lender that funded the applicable Loan or issued the applicable Letter of Credit or Letter of Credit Guaranty
or Letter of Credit Guaranty, and (ii) at any time there are two (2) or more Secured Parties, "Super-Majority Lenders"
must include at least two (2) Secured Parties (who are not Affiliates of one another).


 


Swap Obligations: with
respect to an Obligor, its obligations under a Hedging Agreement that constitutes a “swap” within the meaning of Section 1a(47)
of the Commodity Exchange Act.


 


Swingline Lender: CIT
Northbridge Funding II LLC.


 


Swingline Loan: any
Borrowing of Base Rate Revolver Loans funded with Agent’s funds, until such Borrowing is settled among Lenders or repaid by Borrowers.


 


Taxes: all present
or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.


 


 


 






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Term SOFR: for any
calculation with respect to a SOFR Loan, the Term SOFR Reference Rate for a tenor comparable to the applicable Monthly Period on the day
(such day, the "Periodic Term SOFR Determination Day") that is two (2) U.S. Government Securities Business Days prior
to the first day of such Monthly Period, as such rate is published by the Term SOFR Administrator; provided, however, that
if as of 5:00 p.m. (New York City time) on any Periodic Term SOFR Determination Day the Term SOFR Reference Rate for the applicable tenor
has not been published by the Term SOFR Administrator and a Benchmark Replacement Date with respect to the Term SOFR Reference Rate has
not occurred, then Term SOFR will be the Term SOFR Reference Rate for such tenor as published by the Term SOFR Administrator on the first
preceding U.S. Government Securities Business Day for which such Term SOFR Reference Rate for such tenor was published by the Term SOFR
Administrator so long as such first preceding U.S. Government Securities Business Day is not more than three (3) U.S. Government Securities
Business Days prior to such Periodic Term SOFR Determination Day.


 


Term SOFR Adjustment:
0.11% per annum.


 


Term SOFR Administrator:
CME Group Benchmark Administration Limited (CBA) (or a successor administrator of the Term SOFR Reference Rate selected by Agent in its
reasonable discretion).


 


Term SOFR Reference Rate:
the forward-looking term rate based on SOFR.


 


Transactions: collectively,
(a) the execution, delivery and performance by the Obligors of the Loan Documents to which they are a party and the making of the Loans
hereunder and issuing of the Letters of Credit hereunder, (b) the repayment of all amounts due or outstanding under the Existing Loan
Documentation and (c) the payment of all related costs, fees and expenses.


 


Transceiver License Agreements:
collectively, (a) that certain Trademark License Agreement to be entered into by and among AOI, Yuhan and Global Technology Co., Ltd.,
a company incorporated in the People’s Republic of China (unified social credit code: 91330212739470836U) (“GT”)
and (b) that certain Technology Cross License Agreement to be entered into by and among AOI, Yuhan and GT, in each case to the extent
entered into pursuant to the Transceiver SPA and in the form attached to the Transceiver SPA as of the date hereof.


 


Transceiver SPA: that
certain Agreement for the Sale and Purchase of a New Company to be Established in Hong Kong Special Administrative Region of the People’s
Republic of China, dated as of September 15, 2022, as in effect on the date hereof, by and between AOI, Prime World International Holdings
Ltd., a company incorporated in the British Virgin Islands (registered number 1005401) (“PWIH”) and Yuhan Optoelectronic
Technology (Shanghai) Co., Ltd. (“Yuhan”), as in effect on the date hereof, pursuant to which PWIH will sell, and Yuhan
will purchase, the Shares (as defined in the Transceiver SPA) of the Company (as defined in the Transceiver SPA), which Company shall
own 100% of the Equity Interests in Global Technology Co., Ltd., and which assets of the Company (as defined in the Transceiver SPA) shall
include manufacturing facilities located in the People’s Republic of China and certain assets related to the transceiver business
of AOI and PWIH and multi-channel optical sub-assembly products for the internet datacenter, telecom, and FTTH markets for a purchase
price of $150,000,000, subject to adjustment as set forth therein.


 


Transceiver Sale: the
Asset Dispositions contemplated by the Transceiver SPA (including the Transceiver License Agreements).


 


Transceiver Sale Holdback
Amount: the “Additional Consideration” (as defined in the Transceiver SPA) payable by Yuhan to PWIH pursuant to the Transceiver
SPA.


 


Transferee: any actual
or potential Eligible Assignee, Participant or other Person acquiring an interest in any Obligations.


 


Trigger Period: the
period (a) commencing on any day that (i) an Event of Default occurs or (ii) Availability is less than $2,777,778 or 10.0% of the aggregate
Revolver Commitments; and (b) continuing until, during each of the preceding 60 consecutive days, no Event of Default has existed and
Availability has been more than $2,777,778 and 10.0% of the aggregate Revolver Commitments.


 


 


 






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UCC: the Uniform Commercial
Code as in effect in the State of New York or, when the laws of any other jurisdiction govern the perfection or enforcement of any Lien,
the Uniform Commercial Code of such jurisdiction.


 


UK Financial Institution:
any BRRD Undertaking (as such term is defined under the PRA Rulebook (as amended from time to time) promulgated by the United Kingdom
Prudential Regulation Authority) or any person falling within IFPRU 11.6 of the FCA Handbook (as amended from time to time) promulgated
by the United Kingdom Financial Conduct Authority, which includes certain credit institutions and investment firms, and certain affiliates
of such credit institutions or investment firms.


 


UK Resolution Authority:
the Bank of England or any other public administrative authority having responsibility for the resolution of any UK Financial Institution.


 


Unadjusted Benchmark Replacement:
the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.


 


Unused Line Fee Rate:
a per annum rate equal to 0.50%.


 


Upstream Payment: a
Distribution by a Subsidiary of a Borrower to such Borrower.


 


U.S. Government Securities
Business Day: any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial
Markets Association, or any successor thereto, recommends that the fixed income departments of its members be closed for the entire day
for purposes of trading in U.S. government securities; provided, that for purposes of notice requirements in Section 4.1.1
such day is also a Business Day.


 


U.S. Person: “United
States Person” as defined in Section 7701(a)(30) of the Code.


 


U.S. Tax Compliance Certificate:
as defined in Section 5.10.2(b)(iii).


 


Value: (a) for Inventory,
its value determined on the basis of the lower of cost or market, calculated on an average-cost basis, and excluding any portion of cost
attributable to intercompany profit among Borrowers and their Affiliates; (b) for an Account (other than a Credit Insured Foreign Account),
its face amount, net of any returns, rebates, discounts (calculated on the shortest terms), credits, allowances or Taxes (including sales,
excise or other taxes) that have been or could be claimed by the Account Debtor or any other Person; and (c) for a Credit Insured Foreign
Account, (i) the lesser of (x) the face amount of such Credit Insured Foreign Account, net of any returns, rebates, discounts (calculated
on the shortest terms), credits, allowances or Taxes (including sales, excise or other taxes) that have been or could be claimed by the
Account Debtor or any other Person and (y) the amount of credit insurance backing such Credit Insured Foreign Account (not to exceed
the credit limit with respect to such Credit Insured Foreign Account), net of (ii) any insurance premiums or deductibles (the excess,
if any, of (i) over (ii) shall be included in the Accounts Formula Amount).


 


Write-Down and Conversion
Powers: (a) with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from
time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described
in the EU Bail-In Legislation Schedule, and (b) with respect to the United Kingdom, any powers of the applicable Resolution Authority
under the Bail-In Legislation to cancel, reduce, modify or change the form of a liability of any UK Financial Institution or any contract
or instrument under which that liability arises, to convert all or part of that liability into shares, securities or obligations of that
person or any other person, to provide that any such contract or instrument is to have effect as if a right had been exercised under it
or to suspend any obligation in respect of that liability or any of the powers under that Bail-In Legislation that are related to or ancillary
to any of those powers.


 


 


 






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1.2              
Accounting Terms. Under the Loan Documents (except as otherwise specified therein), all accounting
terms shall be interpreted, all accounting determinations shall be made, and all financial statements shall be prepared, in accordance
with GAAP applied on a basis consistent with the most recent audited financial statements of Borrowers delivered to Agent before the
Closing Date and using the same inventory valuation method as used in such financial statements, except for any change required or permitted
by GAAP if Borrowers’ certified public accountants concur in such change, the change is disclosed to Agent, and all relevant provisions
of the Loan Documents are amended in a manner satisfactory to Required Lenders to take into account the effects of the change.


 


1.3              
Uniform Commercial Code. As used herein, the following terms are defined in accordance with the
UCC. “Account,” “Account Debtor,” “Chattel Paper,” “Commercial Tort Claim,” “Deposit
Account,” “Document,” “Equipment,” “General Intangibles,” “Goods,” “Instrument,”
“Investment Property,” “Letter-of-Credit Right” and “Supporting Obligation.”


 


1.4              
Certain Matters of Construction. The terms “herein,” “hereof,” “hereunder”
and other words of similar import refer to this Agreement as a whole and not to any particular section, paragraph or subdivision. Any
pronoun used shall be deemed to cover all genders. In the computation of periods of time from a specified date to a later specified date,
“from” means “from and including,” and “to” and “until” each mean “to but excluding.”
The terms “including” and “include” shall mean “including, without limitation” and, for purposes
of each Loan Document, the parties agree that the rule of ejusdem generis shall not be applicable to limit any provision. Section
titles appear as a matter of convenience only and shall not affect the interpretation of any Loan Document. All references to (a) laws
include all related regulations, interpretations, supplements, amendments and successor provisions; (b) any document, instrument or agreement
include any amendments, waivers and other modifications, extensions or renewals (to the extent permitted by the Loan Documents); (c)
any section mean, unless the context otherwise requires, a section of this Agreement; (d) any exhibits or schedules mean, unless the
context otherwise requires, exhibits and schedules attached hereto, which are hereby incorporated by reference; (e) any Person include
successors and assigns; (f) time of day means the time of day in New York, New York; or (g) discretion of Agent, Issuing Bank or any
Lender mean the sole and absolute discretion of such Person exercised at any time. All references to Value, Borrowing Base components,
Loans, Letters of Credit, Obligations and other amounts herein shall be denominated in Dollars, unless expressly provided otherwise,
and all determinations (including calculations of Borrowing Base and financial covenants) made from time to time under the Loan Documents
shall be made in light of the circumstances existing at such time. Borrowing Base calculations shall be consistent with historical methods
of valuation and calculation, and otherwise satisfactory to Agent (and not necessarily calculated in accordance with GAAP). Borrowers
shall have the burden of establishing any alleged negligence, misconduct or lack of good faith by Agent, Issuing Bank or any Lender under
any Loan Documents. No provision of any Loan Documents shall be construed against any party by reason of such party having, or being
deemed to have, drafted the provision. Reference to a Borrower’s “knowledge” or similar concept means actual knowledge
of a Senior Officer, or knowledge that a Senior Officer would have obtained if he or she had engaged in good faith and diligent performance
of his or her duties, including reasonably specific inquiries of employees or agents and a good faith attempt to ascertain the matter.


 


1.5              
Rates. Agent does not warrant or accept any responsibility for, and shall not have
any liability with respect to, (a) the continuation of, administration of, submission of, calculation of or any other matter related to
the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark, any component definition thereof or rates referred
to in the definition thereof, or with respect to any alternative, successor or replacement rate thereto (including any then-current Benchmark
or any Benchmark Replacement), including whether the composition or characteristics of any such alternative, successor or replacement
rate (including any Benchmark Replacement), as it may or may not be adjusted pursuant to Section 3.6.2,
will be similar to, or produce the same value or economic equivalence of, or have the same volume or liquidity as, the Term SOFR Reference
Rate, Adjusted Term SOFR, Term SOFR or any other Benchmark, prior to its discontinuance or unavailability, or (b) the effect, implementation
or composition of any Conforming Changes. Agent and its affiliates or other related entities may engage in transactions that affect the
calculation of the Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR, any alternative, successor or replacement rate (including
any Benchmark Replacement) or any relevant adjustments thereto and such transactions may be adverse to a Borrower. Agent may select information
sources or services in its reasonable discretion to ascertain the Term SOFR Reference Rate, Adjusted Term SOFR or Term SOFR, or any other
Benchmark, any component definition thereof or rates referred to in the definition thereof, in each case pursuant to the terms of this
Agreement, and shall have no liability to any Borrower, any Lender or any other person or entity for damages of any kind, including direct
or indirect, special, punitive, incidental or consequential damages, costs, losses or expenses (whether in tort, contract or otherwise
and whether at law or in equity), for any error or calculation of any such rate (or component thereof) provided by any such information
source or service.


 


 


 






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1.6              
Division. Any reference herein to a merger, transfer, consolidation, amalgamation,
assignment, sale, disposition or transfer, or similar term, shall be deemed to apply to a Division of or by a limited liability company
or limited partnership, or an allocation of assets to a series of any such entity (or the unwinding of a Division or allocation) as if
it were a merger, transfer, consolidation, amalgamation, assignment, sale, disposition or transfer or similar term, as applicable, to,
of or with a separate Person. Any Division of a Person shall constitute a separate Person hereunder.


 


SECTION
2.          CREDIT
FACILITIES


 


2.1              
Revolver Commitment.


 


2.1.1         
Revolver Loans. Each Lender agrees, severally on a Pro Rata basis up to its Revolver Commitment, on the terms set
forth herein, to make Revolver Loans to Borrowers from time to time through the Commitment Termination Date. The Revolver Loans may be
repaid and reborrowed as provided herein. In no event shall Lenders have any obligation to honor a request for a Revolver Loan if Revolver
Usage at such time plus the requested Loan would exceed the Borrowing Base.2.1.2Notes. Loans
and interest accruing thereon shall be evidenced by the records of Agent and the applicable Lender. At the request of a Lender, Borrowers
shall deliver promissory note(s) to such Lender, evidencing its Loans.


 


2.1.3         
Use of Proceeds. The proceeds of Revolver Loans shall be used by Borrowers solely (a) to repay all amounts due or
outstanding under the Existing Loan Documentation; (b) to pay fees and transaction expenses associated with the closing of this credit
facility; (c) to pay Obligations in accordance with this Agreement; and (d) for lawful corporate purposes of Borrowers, including working
capital and capital expenditures. Borrowers shall not, directly or indirectly, use any Letter of Credit or Loan proceeds, nor use, lend,
contribute or otherwise make available any Letter of Credit or Loan proceeds to any Subsidiary, joint venture partner or other Person,
(i) to fund any activities of or business with any Person, or in any Designated Jurisdiction, that, at the time of issuance of the
Letter of Credit or funding of the Loan, is the subject of any Sanction; or (ii) in any manner that would result in a violation of
a Sanction by any Person (including any Secured Party or other individual or entity participating in any transaction); or (iii) for
any purpose that would breach the U.S. Foreign Corrupt Practices Act of 1977, UK Bribery Act 2010 or similar law in any jurisdiction.


 


2.1.4         
Voluntary Reduction or Termination of Revolver Commitments.


 


(a)               
The Revolver Commitments shall terminate on the Revolver Termination Date, unless sooner terminated in accordance with this
Agreement. Upon at least 90 days prior written notice to Agent at any time after the first Loan Year, Borrowers may, at their option,
terminate the Revolver Commitments and this credit facility. Any notice of termination given by Borrowers shall be irrevocable. On the
termination date, Borrowers shall make Full Payment of all Obligations, including the applicable Prepayment Fee, if any. For clarification
purposes, the Revolver Loans may be repaid and reborrowed as provided herein.


 


(b)               
Borrowers may permanently reduce the Revolver Commitments on a ratable basis for all Lenders to an aggregate amount of not
less than $15,000,000, upon at least 90 days prior written notice to Agent, which notice shall specify the amount of the reduction and
shall be irrevocable once given. Each reduction shall be in a minimum amount of $5,000,000, or an increment of $1,000,000 in excess thereof.
Any such permanent reduction shall be accompanied by the payment of the applicable Prepayment Fee, if any.


 


2.1.5         
Protective Advances. Agent shall be authorized, in its discretion, at any time, to make Revolver Loans that are SOFR
Loans (or, if SOFR Loans are unavailable, Base Rate Loans) (“Protective Advances”) (a) if Agent deems such Loans necessary
or desirable to preserve or protect Collateral, or to enhance the collectability or repayment of Obligations, as long as such Loans do
not cause Revolver Usage to exceed the aggregate Revolver Commitments; or (b) to pay any other amounts chargeable to Obligors under any
Loan Documents, including interest, costs, fees and expenses. Lenders shall participate on a Pro Rata basis in Protective Advances outstanding
from time to time. Required Lenders may at any time revoke Agent’s authority to make further Protective Advances under clause
(a) by written notice to Agent. Absent such revocation, Agent’s determination that funding of a Protective Advance is appropriate
shall be conclusive.


 


 


 






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2.1.6         
Increase in Revolver Commitments. Borrowers may request an increase in Revolver Commitments from time to time upon
not less than thirty (30) days' notice to Agent, as long as (a) the requested increase is in a minimum amount of $2,500,000 and is
offered on the same terms as existing Revolver Commitments, except for a closing fee specified by Borrowers, (b) total increases
under this Section do not exceed $5,000,000 and no more than two (2) increases are made, (c) the requested increase does not cause
the Revolver Commitments to exceed 90% of any applicable cap under any Subordinated Debt agreement, (d) with respect to any requested
increase after giving effect to which the aggregate principal amount of the Obligations outstanding under the Loan Documents would exceed
$25,000,000, (i) no Default or Event of Default (each as defined in the Convertible Notes Indenture) has occurred and is continuing or
would occur as a consequence of such credit extension and (ii) so long as any Convertible Notes (or any Refinancing Debt with respect
thereto) remain in effect, the Consolidated Leverage Ratio (as defined in the Convertible Notes Indenture or any equivalent documentation
with respect to any Refinancing Debt with respect thereto) is less than or equal to 4.00:1.00 and (e) Agent shall consent to such increase,
in its sole discretion. Agent shall promptly notify Lenders of the requested increase and, within ten (10) Business Days thereafter, each
Lender shall notify Agent if and to what extent such Lender commits to increase its Revolver Commitment. Any Lender not responding within
such period shall be deemed to have declined an increase. If Lenders fail to commit to the full requested increase, Eligible Assignees
may issue additional Revolver Commitments and become Lenders hereunder. Agent may agree, in its sole discretion, to assist in syndicating
such additional Revolver Commitments if Lenders fail to commit to the full requested increase. Agent may allocate, in its discretion,
the increased Revolver Commitments among committing Lenders and, if necessary, Eligible Assignees. Total Revolver Commitments shall be
increased by the requested amount (or such lesser amount committed by Lenders and Eligible Assignees) on a date agreed upon by Agent and
Borrower Agent, provided the conditions set forth in Section 6.2 are satisfied at such time. Agent, Borrowers, and the new
and existing Lenders shall execute and deliver such documents and agreements as Agent deems appropriate to evidence the increase in and
allocations of Revolver Commitments. On the effective date of an increase, the Revolver Usage and other exposures under the Revolver Commitments
shall be reallocated among Lenders, and settled by Agent as necessary, in accordance with Lenders' adjusted shares of such Revolver Commitments.
For the avoidance of doubt, no Lender shall have any obligation to increase its Revolver Commitments hereunder.


 


2.2              
[Reserved].


 


2.3              
Letter of Credit Facility.


 


2.3.1         
Issuance of Letters of Credit. Agent and Lenders agree to incur from time to time until
the Commitment Termination Date, upon request of Borrower Agent and for a Borrower’s account, LC Obligations by causing Letters
of Credit to be issued by (x) Agent (or an Affiliate thereof), (y) a Lender (or an Affiliate thereof) selected by or acceptable
to Agent, in its sole discretion, or (z) a bank or other legally authorized Person selected by or acceptable to Agent, in its sole
discretion, and guaranteed by Agent (or an Affiliate thereof) (a "Letter of Credit Guaranty") (each of (x) through (z),
an "Issuing Bank"), on the terms set forth herein, including the following:


 


(a)               
Each Borrower acknowledges that Issuing Bank's issuance of any Letter of Credit is conditioned upon Issuing Bank's receipt
of a LC Application with respect to the requested Letter of Credit, as well as such other instruments and agreements as Issuing Bank may
customarily require for issuance of a letter of credit of similar type and amount. Issuing Bank shall have no obligation to issue any
Letter of Credit unless (i) Issuing Bank receives a LC Request and LC Application at least five (5) Business Days prior to the requested
date of issuance; (ii) each LC Condition is satisfied; and (iii) if a Defaulting Lender exists, such Lender or Borrowers have
entered into arrangements satisfactory to Agent and Issuing Bank to eliminate any Fronting Exposure associated with such Lender. If, in
sufficient time to act, Issuing Bank receives written notice from Agent or Required Lenders that a LC Condition has not been satisfied,
Issuing Bank shall not issue the requested Letter of Credit. Prior to receipt of any such notice, Issuing Bank shall not be deemed to
have knowledge of any failure of LC Conditions.


 


(b)               
Letters of Credit may be requested by a Borrower to support obligations incurred in the Ordinary Course of Business, or
as otherwise approved by Agent. Increase, renewal or extension of a Letter of Credit shall be treated as issuance of a new Letter of Credit,
except that Issuing Bank may require a new LC Application in its discretion.


 


 


 






    	 	30	 



     


    

 


(c)               
Borrowers assume all risks of the acts, omissions or misuses of any Letter of Credit by the beneficiary. In connection with
any Letter of Credit, none of Agent, Issuing Bank or any Lender shall be responsible for the existence, character, quality, quantity,
condition, packing, value or delivery of any goods purported to be represented by any Documents; any differences or variation in the character,
quality, quantity, condition, packing, value or delivery of any goods from that expressed in any Documents; the form, validity, sufficiency,
accuracy, genuineness or legal effect of any Documents or of any endorsements thereon; the time, place, manner or order in which shipment
of goods is made; partial or incomplete shipment of, or failure to ship, any goods referred to in a Letter of Credit or Documents; any
deviation from instructions, delay, default or fraud by any shipper or other Person in connection with any goods, shipment or delivery;
any breach of contract between a shipper or vendor and a Borrower; errors, omissions, interruptions or delays in transmission or delivery
of any messages, by mail, cable, telegraph, telex, telecopy, e-mail, telephone or otherwise; errors in interpretation of technical terms;
the misapplication by a beneficiary of any Letter of Credit or the proceeds thereof; or any consequences arising from causes beyond the
control of Issuing Bank, Agent or any Lender, including any act or omission of a Governmental Authority. Borrowers shall take all action
to avoid and mitigate any damages relating to any Letter of Credit or claimed against Issuing Bank, Agent or any Lender, including through
enforcement of any available rights against a beneficiary. Issuing Bank shall be fully subrogated to the rights and remedies of any beneficiary
whose claims against Borrowers are discharged with proceeds of a Letter of Credit. The rights and remedies of Issuing Bank under the Loan
Documents shall be cumulative.


 


(d)               
In connection with its administration of and enforcement of rights or remedies under any Letters of Credit or LC Documents,
Issuing Bank shall be entitled to act, and shall be fully protected in acting, upon any certification, documentation or communication
in whatever form believed by Issuing Bank, in good faith, to be genuine and correct and to have been signed, sent or made by a proper
Person. Issuing Bank may use legal counsel, accountants and other experts to advise it concerning its obligations, rights and remedies,
and shall be entitled to act upon, and shall be fully protected in any action taken in good faith reliance upon, any advice given by such
experts. Issuing Bank may employ agents and attorneys-in-fact in connection with any matter relating to Letters of Credit or LC Documents,
and shall not be liable for the negligence or misconduct of agents and attorneys-in-fact selected with reasonable care.


 


2.3.2         
Reimbursement; Participations.


 


(a)               
In the event that Agent or any Issuing Bank shall make any payment on or pursuant to any LC Obligation, such payment shall
then be deemed automatically to constitute a Revolver Loan under Section 2.1.1 regardless of whether a Default or Event of Default
has occurred and is continuing and notwithstanding the Borrowers' failure to satisfy the conditions precedent in Section 6.2. The
obligation of Borrowers to reimburse Agent and Lenders for payments made with respect to any LC Obligation shall be absolute, unconditional,
irrevocable, and joint and several, and shall be paid without regard to any lack of validity or enforceability of any Letter of Credit
or the existence of any claim, setoff, defense or other right that Borrowers may have at any time against the beneficiary. Each Lender
shall fund its Pro Rata share of such Borrowing whether or not the Commitments have terminated, Revolver Usage exceeds the Borrowing Base,
or the conditions in Section 6 are satisfied. The failure of any Lender to make available to Agent or Issuing Bank for Agent's
or Issuing Bank's own account its Pro Rata portion of any such Revolver Loan or payment by Agent under or in respect of a Letter of Credit
shall not relieve any other Lender of its obligation hereunder to make available to Agent or Issuing Bank its Pro Rata portion, but no
Lender shall be responsible for the failure of any other Lender to make available such other Lender's Pro Rata portion of any such payment.


 


(b)               
If it shall be illegal or unlawful for Borrowers to incur Revolver Loans as contemplated by clause (a) above because of
an Event of Default described in Section 11.1(j) or otherwise or if it shall be illegal or unlawful for any Lender to be deemed
to have assumed a ratable share of the reimbursement obligations owed to an Issuing Bank, or if Issuing Bank is a Lender, then (i) immediately
and without further action whatsoever, each Lender shall be deemed to have irrevocably and unconditionally purchased from Agent (or such
Issuing Bank, as the case may be), without representation or warranty, an undivided interest and participation equal to such Lender's
Pro Rata share (based on the Revolver Commitments) of the LC Obligations in respect of all Letters of Credit then outstanding and (ii) thereafter,
immediately upon issuance of any Letter of Credit, each Lender shall be deemed to have irrevocably and unconditionally purchased from
Agent (or such Issuing Bank, as the case may be), without representation or warranty, an undivided interest and participation in such
Lender's Pro Rata share (based on the Revolver Commitments) of the LC Obligations with respect to such Letter of Credit on the date of
such issuance. Each Lender shall fund its participation in all payments or disbursements made under the Letters of Credit in the same
manner as provided in this Agreement with respect to Revolver Loans.


 


 


 






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(c)               
The obligation of each Lender to make the payments described above in this Section 2.3.2 shall be absolute, unconditional
and irrevocable, not subject to any counterclaim, setoff, qualification or exception whatsoever, and shall be made in accordance with
this Agreement under all circumstances, irrespective of any lack of validity or unenforceability of any Loan Documents; any draft, certificate
or other document presented under a Letter of Credit having been determined to be forged, fraudulent, noncompliant, invalid or insufficient
in any respect or any statement therein being untrue or inaccurate in any respect; any waiver by Issuing Bank of a requirement that exists
for its protection (and not a Borrower's protection) or that does not materially prejudice a Borrower; any honor of an electronic demand
for payment even if a draft is required; any payment of an item presented after a Letter of Credit's expiration date if authorized by
the UCC or applicable customs or practices; or any setoff or defense that an Obligor may have with respect to any Obligations. Neither
Issuing Bank nor Agent assumes any responsibility for any failure or delay in performance or any breach by any Borrower or other Person
of any obligations under any LC Documents. Neither Issuing Bank nor Agent makes to Lenders any express or implied warranty, representation
or guaranty with respect to any Letter of Credit, Collateral, LC Document or Obligor. Neither Issuing Bank nor Agent shall be responsible
to any Lender for any recitals, statements, information, representations or warranties contained in, or for the execution, validity, genuineness,
effectiveness or enforceability of any LC Documents; the validity, genuineness, enforceability, collectability, value or sufficiency of
any Collateral or the perfection of any Lien therein; or the assets, liabilities, financial condition, results of operations, business,
creditworthiness or legal status of any Obligor.


 


(d)               
No Issuing Bank Indemnitee shall be liable to any Lender or other Person for any action taken or omitted to be taken in
connection with any Letter of Credit or LC Document except as a result of its gross negligence or willful misconduct. Issuing Bank may
refrain from taking any action with respect to a Letter of Credit until it receives written instructions (and in its discretion, appropriate
assurances) from the Lenders.


 


2.3.3         
Cash Collateral. Subject to Section 2.1.5, if at any time (a) an Event
of Default exists, (b) the Commitment Termination Date occurs, or (c) the Revolver Termination Date is scheduled to occur within
twenty (20) Business Days, then Borrowers shall, at Issuing Bank's or Agent's request, Cash Collateralize all outstanding Letters of Credit.
Borrowers shall, at Issuing Bank's or Agent's request at any time, Cash Collateralize the Fronting Exposure of any Defaulting Lender.
If Borrowers fail to provide any Cash Collateral as required hereunder, Lenders may (and shall upon direction of Agent) advance, as Revolver
Loans, the amount of Cash Collateral required (whether or not the Commitments have terminated, the Revolver Usage would exceed the Borrowing
Base or the Revolver Commitments or the conditions in Section 6 are satisfied).


 


2.3.4         
Resignation of Issuing Bank. Issuing Bank may resign at any time upon notice to Agent
and Borrowers. From the effective date of such resignation, Issuing Bank shall have no obligation to issue, amend, renew, extend or otherwise
modify any Letter of Credit, but shall otherwise continue to have all rights and obligations of an Issuing Bank hereunder relating to
any Letter of Credit issued by it prior to such date. Agent shall promptly appoint a replacement Issuing Bank, which, as long as no Default
or Event of Default exists, shall be reasonably acceptable to Borrowers.


 


2.3.5         
Subrogation Rights; Letter of Credit Guaranty.


 


(a)               
Upon any payments made by Agent to an Issuing Bank under a Letter of Credit Guaranty, Agent, for the benefit of the Lenders,
shall acquire by subrogation, any rights, remedies, duties or obligations granted to or undertaken by the applicable Borrower to Issuing
Bank in any LC Document, any standing agreement relating to Letters of Credit or otherwise, all of which shall be deemed to have been
granted to Agent, for the benefit of Lenders, and apply in all respects to Agent and shall be in addition to any rights, remedies, duties
or obligations contained herein.


 


(b)               
Each Borrower hereby authorizes and directs any Issuing Bank which is not a Lender hereunder to deliver to Agent all instruments,
documents, and other writings and property received by such Issuing Bank pursuant to such Letter of Credit and to accept and rely upon
Agent's instructions with respect to all matters arising in connection with such Letter of Credit and the related LC Documents.


 


(c)               
Any and all charges, commissions, fees, and costs incurred by Agent relating to Letters of Credit issued by an Issuing Bank
which is not a Lender hereunder in reliance on a Letter of Credit Guaranty shall be LC Obligations for purposes of this Agreement and
immediately shall be reimbursable by Borrowers to Agent.


 


 


 



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SECTION
3.          INTEREST,
FEES AND CHARGES


 


3.1              
Interest.


 


3.1.1         
Rates and Payment of Interest.


 


(a)               
The Obligations shall bear interest at the Contract Rate (except as may be provided by the definition of Term SOFR or Section
3.1.2, Section 3.5, or Section 3.6). Subject to Section 3.1.2, Section 3.5 or Section 6, all Loans
shall be SOFR Loans.


 


(b)               
During an Insolvency Proceeding with respect to any Borrower, or during any other Event of Default if Agent or Required
Lenders in their discretion so elect, Obligations shall bear interest at the Default Rate (whether before or after any judgment), payable
on demand.


 


(c)               
Interest shall accrue from the date a Loan is advanced or Obligation is incurred or payable, until paid in full by Borrowers,
and shall in no event be less than zero at any time. Interest accrued on the Loans shall be due and payable in arrears, (i) on the
first calendar day of each calendar month, for the Monthly Period then ended; (ii) on any date of prepayment, with respect to the
principal amount being prepaid; and (iii) on the Commitment Termination Date. Interest accrued on any other Obligations shall be
due and payable as provided in the Loan Documents or, if no payment date is specified, on demand.


 


3.1.2         
Term SOFR Conforming Changes. In connection with the use or administration of Term SOFR, Agent will have the right
to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Loan Document, any amendments
implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement
or any other Loan Document. Agent will promptly notify Borrower Agent and the Lenders of the effectiveness of any Conforming Changes in
connection with the use or administration of Term SOFR.


 


3.2              
Fees.


 


3.2.1         
Unused Line Fee. Borrowers shall pay to Agent, for the Pro Rata benefit of Lenders, a fee equal to the Unused Line
Fee Rate times the amount by which the Revolver Commitments exceed the average Revolver Usage during the preceding month, calculated for
the actual days elapsed. Such unused line fee shall be payable in arrears, on the first day of each calendar month and on the Commitment
Termination Date.


 


3.2.2         
LC Facility Fees. Borrowers shall pay (a) to
Agent, for the Pro Rata benefit of Lenders, a fee equal to the Applicable Margin in effect for SOFR Loans that are Revolver Loans times
the average daily Stated Amount of Letters of Credit, which fee shall be payable monthly in arrears, on the first day of each month; (b) to
Agent, for its own account, a fronting fee equal to 0.25% per annum on the Stated Amount of each Letter of Credit, which fee shall be
payable monthly in arrears, on the first day of each month; (c) all costs and expenses incurred by Agent or any Lender on account
of the LC Obligations which costs and charges shall be paid as and when incurred; and (d) to Issuing Bank, for its own account, all
customary charges associated with the issuance, amending, negotiating, payment, processing, transfer and administration of Letters of
Credit, which charges shall be paid as and when incurred. During an Event of Default, the fee payable under clause (a) shall be
increased by 3% per annum.


 


3.2.3         
Minimum Balance Fee. Borrowers shall pay to Agent a monthly fee equal to (a) the Contract Rate (giving effect
to the Default Rate, if applicable at such time) multiplied by (b) the amount by which the applicable Minimum Balance exceeds the
average monthly Revolver Usage for such month; provided, that if the average monthly Revolver Usage for any month exceeds the applicable
Minimum Balance, no such fee shall be payable for such month. Such fees shall be due and payable on the first calendar day of each calendar
month (commencing on January 1, 2023) and on the Commitment Termination Date.


 


 


 


 






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3.2.4         
Fee Letters. Borrowers shall pay all fees set forth in any fee letter executed in connection with this Agreement.


 


3.2.5         
Wire Fees. Borrowers shall pay Agent $35.00 for any wire initiated by Agent.


 


3.3              
Computation of Interest, Fees, Yield Protection.
All interest, as well as fees and other charges calculated on a per annum basis, shall be computed for the actual days elapsed based
on a year of 360 days, except that interest computed by reference to clause (b) of the definition of Base Rate shall be computed
on the basis of a year of 365 days (or 366 days in a leap year). Each determination by Agent of any interest, fees or interest rate hereunder
shall be final, conclusive and binding for all purposes, absent manifest error. All fees shall be fully earned when due and shall not
be subject to rebate, refund or proration. All fees payable under Section 3.2 are compensation for services and are not, and shall
not be deemed to be, interest or any other charge for the use, forbearance or detention of money. A certificate as to amounts payable
by Borrowers under Section 3.4, 3.6, 3.7, 3.9 or 5.9, submitted to Borrower Agent by Agent or the affected Lender shall
be final, conclusive and binding for all purposes, absent manifest error, and Borrowers shall pay such amounts to the appropriate party
within 10 days following receipt of the certificate.


 


3.4              
Reimbursement Obligations. Borrowers shall pay all Extraordinary Expenses promptly upon request. Borrowers
shall also reimburse Agent for all legal, accounting, appraisal, consulting, and other fees and expenses incurred by it in connection
with (a) negotiation and preparation of any Loan Documents, including any modification thereof; (b) administration of and actions relating
to any Collateral, Loan Documents and transactions contemplated thereby, including any actions taken to perfect or maintain priority
of Agent’s Liens on any Collateral, to maintain any insurance required hereunder or to verify Collateral; and (c) subject to the
limits of Section 10.1.1(b), any examination or appraisal with respect to any Obligor or Collateral by Agent’s personnel or a third
party. All legal, accounting and consulting fees shall be charged to Borrowers by Agent’s professionals at their full hourly rates,
regardless of any alternative fee arrangements that Agent, any Lender or any of their Affiliates may have with such professionals that
otherwise might apply to this or any other transaction. Borrowers acknowledge that counsel may provide Agent with a benefit (such as
a discount, credit or accommodation for other matters) based on counsel’s overall relationship with Agent, including fees paid
hereunder. If, for any reason (including inaccurate reporting in any Borrower Materials), it is determined that a higher Applicable Margin
should have applied to a period than was actually applied, then the proper margin shall be applied retroactively and Borrowers shall
immediately pay to Agent, for the ratable benefit of Lenders, an amount equal to the difference between the amount of interest and fees
that would have accrued using the proper margin and the amount actually paid. All amounts payable by Borrowers under this Section shall
be due on demand.


 


3.5              
Illegality. If any Lender determines that any Applicable Law has made it
unlawful, or that any Governmental Authority has asserted that it is unlawful, for any Lender to perform any of its obligations hereunder,
to make, maintain, fund or charge applicable interest or fees with respect to any Loan, or to determine or charge interest based on the
Term SOFR Reference Rate, Adjusted Term SOFR, Term SOFR or SOFR, then, on notice thereof by such Lender to Agent, any obligation of such
Lender to perform such obligations, to make, maintain or fund the Loan (or to charge interest or fees with respect thereto), or to continue
or convert Loans as SOFR Loans, shall be suspended until such Lender notifies Agent that the circumstances giving rise to such determination
no longer exist and, at the option of Borrowers, Borrowers shall either repay such SOFR Loan(s) or the Lenders shall convert such SOFR
Loan(s) to a Loan that bears reference to the Base Rate plus the Applicable Margin, either on the last day of the Monthly Period therefor,
if such Lender may lawfully continue to maintain the SOFR Loan to such day, or immediately, if such Lender may not lawfully continue to
maintain the SOFR Loan. Upon any such prepayment or conversion, Borrowers shall also pay accrued interest on the amount so prepaid or
converted. Any such Prepayment Fee in connection with any such prepayment or conversion under this Section 3.5, shall be waived.


 


3.6              
SOFR Unavailability.


 


3.6.1         
Inability to Determine Rates Generally. Agent will promptly notify Borrower Agent and Lenders if, in connection with
any Loan or request for a Loan, (a) Agent determines that adequate and reasonable means do not exist for determining Term SOFR Reference
Rate, Term SOFR or SOFR for the Monthly Period; or (b) Agent or Required Lenders determine for any reason that the Term SOFR Reference
Rate, Term SOFR or SOFR for the Monthly Period does not adequately and fairly reflect the cost to Lenders of funding the Loan. Thereafter,
Lenders' obligations to make or maintain affected SOFR Loans shall be suspended until Agent (upon instruction by Required Lenders) withdraws
the notice and all such Loans shall be converted to loans bearing interest at the Base Rate plus the Applicable Margin. Upon receipt of
such notice, Borrower Agent may revoke any pending request for a SOFR Loan or, failing that, will be deemed to have requested a Loan bearing
interest at the Base Rate plus the Applicable Margin.


 


 


 


 






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3.6.2         
Benchmark Replacement Setting.


 


(a)               
Benchmark Replacement. Notwithstanding anything to the contrary herein or in any other Loan Document, upon the occurrence
of a Benchmark Transition Event, Agent and Borrower Agent may amend this Agreement to replace the then-current Benchmark with a Benchmark
Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. on the fifth (5th)
Business Day after Agent has posted such proposed amendment to all Lenders and Borrower Agent so long as Agent has not received, by such
time, written notice of objection to such amendment from Lenders comprising the Required Lenders. No replacement of a Benchmark with a
Benchmark Replacement pursuant to this Section 3.6.2(a) will occur prior to the applicable Benchmark Transition Start Date.


 


(b)               
Benchmark Replacement Conforming Changes. In connection with the use, administration, adoption or implementation
of a Benchmark Replacement, Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the
contrary herein or in any other Loan Document, any amendments implementing such Conforming Changes will become effective without any further
action or consent of any other party to this Agreement or any other Loan Document.


 


(c)               
Notices; Standards for Decisions and Determinations. Agent will promptly notify Borrower Agent and the Lenders of
(1) the implementation of any Benchmark Replacement and (2) the effectiveness of any Conforming Changes in connection with the use, administration,
adoption or implementation of a Benchmark Replacement. Agent will notify Borrower Agent of (x) the removal or reinstatement of any tenor
of a Benchmark pursuant to Section 3.6.2(d) and (y) the commencement of any Benchmark Unavailability Period. Any determination,
decision or election that may be made by Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 3.6.2(c),
including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance
or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error
and may be made in its or their sole discretion and without consent from any other party to this Agreement or any other Loan Document,
except, in each case, as expressly required pursuant to this Section 3.6.2(c).


 


(d)               
Unavailability of Tenor Benchmark. Notwithstanding anything to the contrary herein or in any other Loan Document,
at any time (including in connection with the implementation of a Benchmark Replacement), (1) if the then-current Benchmark is a term
rate (including the Term SOFR Reference Rate) and either (I) any tenor for such Benchmark is not displayed on a screen or other information
service that publishes such rate from time to time as selected by Agent in its reasonable discretion or (II) the regulatory supervisor
for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such
Benchmark is not or will not be representative, then Agent may modify the definition of "Monthly Period" (or any similar
or analogous definition) for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (2)
if a tenor that was removed pursuant to clause (1) above either (I) is subsequently displayed on a screen or information service for a
Benchmark (including a Benchmark Replacement) or (II) is not, or is no longer, subject to an announcement that it is not or will not be
representative for a Benchmark (including a Benchmark Replacement), then Agent may modify the definition of "Monthly Period"
(or any similar or analogous definition) for all Benchmark settings at or after such time to reinstate such previously removed tenor.


 


(e)               
Benchmark Unavailability Period. Upon Borrower Agent's receipt of notice of the commencement of a Benchmark Unavailability
Period, (1) Borrower Agent may revoke any pending request for a borrowing of, conversion to or continuation of SOFR Loans to be made,
converted or continued during any Benchmark Unavailability Period and, failing that, Borrower Agent will be deemed to have converted any
such request into a request for a borrowing of or conversion to Base Rate Loans and (2) any outstanding affected SOFR Loans will be deemed
to have been converted to Base Rate Loans at the end of the applicable Monthly Period.


 


(f)                
No Requirement of Matched Funding. Anything to the contrary contained herein notwithstanding, neither Agent, nor
any Lender, nor any of their Participants, is required to actually match fund any Obligations as to which interest accrues at Adjusted
Term SOFR or the Term SOFR Reference Rate.


 


 


 


 






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3.7              
Increased Costs; Capital Adequacy.


 


3.7.1         
Increased Costs Generally. If any Change in Law shall:


 


(a)               
impose, modify or deem applicable any reserve, liquidity, 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, any Lender or Issuing Bank;


 


(b)               
subject any Recipient to Taxes (other than (i) Indemnified Taxes, (ii) Taxes described in clauses (b) through (d) of the
definition of Excluded Taxes, and (iii) Connection Income Taxes) with respect to any Loan, Letter of Credit, Commitment or other obligations,
or its deposits, reserves, other liabilities or capital attributable thereto; or


 


(c)               
impose on any Lender, Issuing Bank or interbank market any other condition, cost or expense affecting any Loan, Letter of
Credit, participation in LC Obligations, Commitment or Loan Document;


 


and the result thereof shall be to increase the
cost to a Lender of making or maintaining any Loan or Commitment, or converting to or continuing any interest option for a Loan, or to
increase the cost to a Lender or Issuing Bank of participating in, issuing or maintaining any Letter of Credit (or of maintaining its
obligation to participate in or to issue any Letter of Credit), or to reduce the amount of any sum received or receivable by a Lender
or Issuing Bank hereunder (whether of principal, interest or any other amount) then, upon request of such Lender or Issuing Bank, Borrowers
will pay to it such additional amount(s) as will compensate it for the additional costs incurred or reduction suffered.


 


3.7.2         
Capital Requirements. If a Lender or Issuing Bank determines that a Change in Law affecting such Lender or Issuing
Bank or its holding company, if any, regarding capital or liquidity requirements has or would have the effect of reducing the rate of
return on such Lender's, Issuing Bank's or holding company's capital as a consequence of this Agreement, or such Lender's or Issuing Bank's
Commitments, Loans, Letters of Credit or participations in LC Obligations or Loans, to a level below that which such Lender, Issuing Bank
or holding company could have achieved but for such Change in Law (taking into consideration its policies with respect to capital adequacy),
then from time to time Borrowers will pay to such Lender or Issuing Bank, as the case may be, such additional amounts as will compensate
it or its holding company for the reduction suffered.


 


3.7.3         
Compensation. Failure or delay on the part of any Lender or Issuing Bank to demand compensation pursuant to this
Section shall not constitute a waiver of its right to demand such compensation, but Borrowers shall not be required to compensate a Lender
or Issuing Bank for any increased costs or reductions suffered more than six (6) months (plus any period of retroactivity of the
Change in Law giving rise to the demand) prior to the date that the Lender or Issuing Bank notifies Borrower Agent of the applicable Change
in Law and of such Lender's or Issuing Bank's intention to claim compensation therefor.


 


3.8              
Mitigation. If any Lender gives a notice under Section 3.5 or requests compensation under
Section 3.7, or if Borrowers are required to pay any Indemnified Taxes or additional amounts with respect to a Lender under Section
5.9, then at the request of Borrower Agent, such Lender shall use reasonable efforts to designate a different Lending Office or to
assign its rights and obligations hereunder to another of its offices, branches or Affiliates, if, in the judgment of such Lender, such
designation or assignment (a) would eliminate the need for such notice or reduce amounts payable or to be withheld in the future, as applicable;
and (b) would not subject the Lender to any unreimbursed cost or expense and would not otherwise be disadvantageous to it or unlawful.
Borrowers shall pay all reasonable costs and expenses incurred by any Lender in connection with any such designation or assignment.


 


 


 


 






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3.9              
Funding Losses. If for any reason (a) any Borrowing of a SOFR Loan does not occur on the date
specified therefor in a Notice of Borrowing (whether or not withdrawn), (b) any repayment of a SOFR Loan occurs on a day other than
the end of its Monthly Period, (c) Borrowers fail to repay a SOFR Loan when required hereunder, or (d) a Lender (other than
a Defaulting Lender) is required to assign a SOFR Loan prior to the end of its Monthly Period pursuant to Section 13.4, then Borrowers
shall pay to Agent its customary administrative charge and to each Lender all losses, expenses and fees arising from redeployment of funds
or termination of match funding. For purposes of calculating amounts payable under this Section, a Lender shall be deemed to have funded
a SOFR Loan by a matching deposit or other borrowing at the same or a similar rate offered by the Federal Reserve Bank of New York, as
determined by Agent in its sole discretion, whether or not the Loan was in fact so funded.


 


3.10           
Maximum Interest. Regardless of any provision contained in any of the Loan Documents, in no contingency
or event whatsoever shall the aggregate of all amounts that are contracted for, charged or received by Agent or any Lender pursuant to
the terms of this Agreement or any of the other Loan Documents and that are deemed interest under Applicable Law exceed the highest rate
permissible under any Applicable Law (the “Maximum Rate”). No agreements, conditions, provisions or stipulations contained
in this Agreement or any of the other Loan Documents or the exercise by Agent of the right to accelerate the payment or the maturity
of all or any portion of the Obligations, or the exercise of any option whatsoever contained in any of the Loan Documents, or the prepayment
by any Obligor of any of the Obligations, or the occurrence of any contingency whatsoever, shall entitle Agent or Lenders to charge or
receive in any event, interest or any charges, amounts, premiums or fees deemed interest by Applicable Law (such interest, charges, amounts,
premiums and fees referred to herein collectively as “Interest”) in excess of the Maximum Rate and in no event shall
any Obligor be obligated to pay Interest exceeding such Maximum Rate, and all agreements, conditions or stipulations, if any, which may
in any event or contingency whatsoever operate to bind, obligate or compel any Obligor to pay Interest exceeding the Maximum Rate shall
be without binding force or effect, at law or in equity, to the extent only of the excess of Interest over such Maximum Rate. If any
Interest is charged or received with respect to the Obligations in excess of the Maximum Rate (“Excess”), each Obligor
stipulates that any such charge or receipt shall be the result of an accident and bona fide error, and such Excess, to the extent received,
shall be applied first to reduce the principal Obligations and the balance, if any, returned to the Obligors, it being the intent of
the parties hereto not to enter into an usurious or otherwise illegal relationship. The right to accelerate the maturity of any of the
Obligations does not include the right to accelerate any Interest that has not otherwise accrued on the date of such acceleration, and
neither Agent nor any Lender intends to collect any unearned Interest in the event of any such acceleration. Each Obligor recognizes
that, with fluctuations in the rates of interest set forth in this Agreement, and the Maximum Rate, such an unintentional result could
inadvertently occur. All monies paid to Agent or any Lender hereunder or under any of the other Loan Documents, whether at maturity or
by prepayment, shall be subject to any rebate of unearned Interest as and to the extent required by Applicable Law. By the execution
of this Agreement, each Obligor covenants that (i) the credit or return of any Excess shall constitute the acceptance by each Obligor
of such Excess, and (ii) each Obligor shall not seek or pursue any other remedy, legal or equitable, against Agent or any Lender, based
in whole or in part upon contracting for, charging or receiving any Interest in excess of the Maximum Rate. For the purpose of determining
whether or not any Excess has been contracted for, charged or received by Agent or any Lender, all Interest at any time contracted for,
charged or received from any Obligor in connection with any of the Loan Documents shall, to the extent permitted by Applicable Law, be
amortized, prorated, allocated and spread in equal parts throughout the full term of the Obligations. Obligors, Agent and Lenders shall,
to the maximum extent permitted under Applicable Law, (i) characterize any non-principal payment as an expense, fee or premium rather
than as Interest and (ii) exclude voluntary prepayments and the effects thereof. The provisions of this Section 3.10 shall
be deemed to be incorporated into every Loan Document (whether or not any provision of this Section is referred to therein). All such
Loan Documents and communications relating to any Interest owed by any Obligor and all figures set forth therein shall, for the sole
purpose of computing the extent of Obligations, be automatically recomputed by the Obligors, and by any court considering the same, to
give effect to the adjustments or credits required by this Section 3.10.


 


 






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SECTION
4.          LOAN
ADMINISTRATION


 


4.1              
Manner of Borrowing and Funding Revolver Loans.


 


4.1.1         
Notice of Borrowing.


 


(a)               
To request Revolver Loans, Borrower Agent shall notify Agent of such request by telephone or email (or, if permitted by
Agent, by request posted to Agent's StuckyNet System) a Notice of Borrowing by 10:30 a.m. Central Time on the requested funding date.
Notices received by Agent after such time shall be deemed received on the next Business Day. Each such telephone (or posted) Notice of
Borrowing shall be irrevocable and Borrower Agent agrees to promptly confirm any such telephone request by hand delivery or electronic
transmission to Agent of a written Notice of Borrowing in a form approved by Agent, and signed by Borrower Agent. Each such Notice of
Borrowing shall specify (A) the Borrowing amount, (B) the requested funding date (which must be a U.S. Government Securities
Business Day), (C) the Availability after giving effect to the Borrowing, and (D) the Borrower to whom proceeds from such Borrowing
are to be disbursed.


 


(b)               
Unless payment is otherwise made by Borrowers, the becoming due of any Obligation (whether principal, interest, fees or
other charges, including Extraordinary Expenses, Cash Collateral and Secured Bank Product Obligations) shall be deemed to be a request
for a SOFR Loan on the due date in the amount due and the Loan proceeds shall be disbursed as direct payment of such Obligation. In addition,
Agent may, at its option, charge such amount against any operating, investment or other account of a Borrower maintained with Agent or
any of its Affiliates.


 


(c)               
If a Borrower maintains a disbursement account with Agent or any of its Affiliates, then presentation for payment in the
account of a Payment Item when there are insufficient funds to cover it shall be deemed to be a request for a SOFR Loan on the presentation
date, in the amount of the Payment Item. Proceeds of the Loan may be disbursed directly to the account.


 


4.1.2         
Fundings by Lenders. Except for Swingline Loans, Agent shall endeavor to notify Lenders of each Notice of Borrowing
(or deemed request for a Borrowing) by 1:00 p.m. on the proposed funding date. Each Lender shall fund its Pro Rata share of a Borrowing
in immediately available funds not later than 3:00 p.m. on the requested funding date, unless Agent's notice is received after the
times provided above, in which case Lender shall fund by 11:00 a.m. on the next Business Day. Subject to its receipt of such amounts
from Lenders, Agent shall disburse the Borrowing proceeds in a manner directed by Borrower Agent and acceptable to Agent. Unless Agent
receives (in sufficient time to act) written notice from a Lender that it will not fund its share of a Borrowing, Agent may assume that
such Lender has deposited or promptly will deposit its share with Agent, and Agent may disburse a corresponding amount to Borrowers. If
a Lender's share of a Borrowing or of a settlement under Section 4.1.3(b) is not received by Agent, then Borrowers agree to repay
to Agent on demand the amount of such share, together with interest thereon from the date disbursed until repaid, at the rate applicable
to the Borrowing. A Lender or Issuing Bank may fulfill its obligations under Loan Documents through one or more Lending Offices, and this
shall not affect any obligation of Obligors under the Loan Documents or with respect to any Obligations.


 


4.1.3         
Swingline
Loans; Settlement.


 


(a)               
To fulfill any request for a Revolver Loan hereunder, Swingline Lender may in its discretion advance Swingline Loans to
Borrowers, up to an aggregate outstanding amount of $3,000,000. Swingline Loans shall constitute Revolver Loans for all purposes, except
that payments thereon shall be made to Agent for its own account until Lenders have funded their participations therein as provided below.


 


(b)               
Settlement of Loans, including Swingline Loans, among Lenders and Agent shall take place on a date determined from time
to time by Agent (but at least weekly, unless the settlement amount is de minimis), on a Pro Rata basis in accordance with the
Settlement Report delivered by Agent to Lenders. Between settlement dates, Agent may in its discretion apply payments on Revolver Loans
to Swingline Loans, regardless of any designation by Borrowers or anything herein to the contrary. Each Lender hereby purchases, without
recourse or warranty, an undivided Pro Rata participation in all Swingline Loans outstanding from time to time until settled. If a Swingline
Loan cannot be settled among Lenders, whether due to an Obligor’s Insolvency Proceeding or for any other reason, each Lender shall
pay the amount of its participation in the Loan to Agent, in immediately available funds, within one Business Day after Agent’s
request therefor. Lenders’ obligations to make settlements and to fund participations are absolute, irrevocable and unconditional,
without offset, counterclaim or other defense, and whether or not the Commitments have terminated, the Revolver Usage exceeds the Borrowing
Base or the Revolver Commitments or the conditions in Section 6 are satisfied.


 


 


 






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4.1.4         
Notices. If Borrowers request, convert or continue Loans, select interest rates or transfer funds based on telephonic
or electronic instructions to Agent, Borrowers shall confirm each such request by prompt delivery to Agent of a Notice of Borrowing or
Notice of Conversion/Continuation, as applicable. Neither Agent nor any Lender shall have any liability for any loss suffered by a Borrower
as a result of Agent or any Lender acting upon its understanding of telephonic or electronic instructions from a person believed in good
faith by Agent or any Lender to be authorized to give such instructions on a Borrower’s behalf.


 


4.2              
Defaulting Lender. Notwithstanding anything herein to the contrary:


 


4.2.1         
Reallocation of Pro Rata Share; Amendments. For purposes of determining Lenders’ obligations or rights to
fund, participate in or receive collections with respect to Loans and Letters of Credit (including existing Swingline Loans, Protective
Advances and LC Obligations), Agent may in its discretion reallocate Pro Rata shares by excluding a Defaulting Lender’s Commitments
and Loans from the calculation of shares. A Defaulting Lender shall have no right to vote on any amendment, waiver or other modification
of a Loan Document, except as provided in Section 14.1.1(b). 


 


4.2.2         
Payments; Fees. Agent may, in its discretion, receive and retain any amounts payable to a Defaulting Lender under the Loan
Documents, and a Defaulting Lender shall be deemed to have assigned to Agent such amounts until all Obligations owing to Agent, non-Defaulting
Lenders and other Secured Parties have been paid in full. Agent may use such amounts to cover the Defaulting Lender's defaulted obligations,
to Cash Collateralize such Lender's Fronting Exposure, to readvance the amounts to Borrowers or to repay Obligations. A Lender shall
not be entitled to receive any fees accruing hereunder while it is a Defaulting Lender and its unfunded Commitment shall be disregarded
for purposes of calculating the unused line fee under Section 3.2.1. If any LC Obligations owing to a Defaulting Lender are reallocated
to other Lenders, fees attributable to such LC Obligations under Section 3.2.2 shall be paid to such Lenders. Agent shall be paid
all fees attributable to LC Obligations that are not reallocated.


 


4.2.3         
Status; Cure. Agent may determine in its discretion that a Lender constitutes a Defaulting Lender and the effective date of such
status shall be conclusive and binding on all parties, absent manifest error. Borrowers, Agent and Issuing Bank may agree in writing
that a Lender has ceased to be a Defaulting Lender, whereupon Pro Rata shares shall be reallocated without exclusion of the reinstated
Lender's Commitments and Loans, and the Revolver Usage and other exposures under the Revolver Commitments shall be reallocated among
Lenders and settled by Agent (with appropriate payments by the reinstated Lender, including its payment of breakage costs for reallocated
SOFR Loans) in accordance with the readjusted Pro Rata shares. Unless expressly agreed by Borrowers, Agent and Issuing Bank, or as expressly
provided herein with respect to Bail-In Actions and related matters, no reallocation of Commitments and Loans to non-Defaulting Lenders
or reinstatement of a Defaulting Lender shall constitute a waiver or release of claims against such Lender. The failure of any Lender
to fund a Loan, to make a payment in respect of LC Obligations or otherwise to perform obligations hereunder shall not relieve any other
Lender of its obligations under any Loan Document. No Lender shall be responsible for default by another Lender.


 


4.3              
[Reserved].


 


4.4              
Borrower Agent. Each Borrower hereby designates AOI ("Borrower Agent") as its representative
and agent for all purposes under the Loan Documents, including requests for and receipt of Loans and Letters of Credit, designation of
interest rates, delivery or receipt of communications, delivery of Borrower Materials, payment of Obligations, requests for waivers,
amendments or other accommodations, actions under the Loan Documents (including in respect of compliance with covenants), and all other
dealings with Agent, Issuing Bank or any Lender. Borrower Agent hereby accepts such appointment. Agent and Lenders shall be entitled
to rely upon, and shall be fully protected in relying upon, any notice or communication (including any notice of borrowing) delivered
by Borrower Agent on behalf of any Borrower. Agent and Lenders may give any notice or communication with a Borrower hereunder to Borrower
Agent on behalf of such Borrower. Each of Agent, Issuing Bank and Lenders shall have the right, in its discretion, to deal exclusively
with Borrower Agent for all purposes under the Loan Documents. Each Borrower agrees that any notice, election, communication, delivery,
representation, agreement, action, omission or undertaking by Borrower Agent shall be binding upon and enforceable against such Borrower.


 


 


 


 






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4.5              
One Obligation. The Loans, LC Obligations and other Obligations constitute one general obligation of
Borrowers and are secured by Agent’s Lien on all Collateral; provided, however, that Agent and each Lender shall be deemed to be
a creditor of, and the holder of a separate claim against, each Borrower to the extent of any Obligations jointly or severally owed by
such Borrower.


 


4.6              
Effect of Termination. On the effective date of the termination of all Commitments, the Obligations shall
be immediately due and payable, and each Secured Bank Product Provider may terminate its Bank Products. Until Full Payment of the Obligations,
all undertakings of Borrowers contained in the Loan Documents shall continue, and Agent shall retain its Liens in the Collateral and
all of its rights and remedies under the Loan Documents. Agent shall not be required to terminate its Liens unless it receives Cash Collateral
or a written agreement, in each case satisfactory to it, protecting Agent and Lenders from dishonor or return of any Payment Item previously
applied to the Obligations. Sections 3.4, 3.6, 3.7, 3.9, 5.5, 5.9, 5.10, 12, 14.2, this Section, and each indemnity
or waiver given by an Obligor or Lender in any Loan Document, shall survive Full Payment of the Obligations.



 


SECTION
5.          PAYMENTS


 


5.1              
General Payment Provisions. All payments
of Obligations shall be made in Dollars, without offset, counterclaim or defense of any kind, free and clear of (and without deduction
for) any Taxes except as otherwise required in accordance with Applicable Law, and in immediately available funds, not later than 12:00 noon
on the due date. Any payment after such time shall be deemed made on the next Business Day. Any payment of a SOFR Loan prior to the end
of its Monthly Period shall be accompanied by all amounts due under Section 3.9. Borrowers agree that Agent shall have the
continuing, exclusive right to apply and reapply payments and proceeds of Collateral against the Obligations, in such manner as Agent
deems advisable.


 


5.2              
Repayment of Revolver Loans. Revolver Loans shall be due and payable in full on the Revolver Termination
Date, unless payment is sooner required hereunder. Revolver Loans may be prepaid from time to time, without penalty or premium, other
than (a) any applicable Prepayment Fee arising in connection with the termination of any Revolver Commitments under Section 2.1.4,
(b) any applicable Prepayment Fee if such prepayment occurs in connection with any involuntary termination of all Revolver Commitments
(other than as expressly set forth in Section 3.5), including after acceleration of any of the Obligations, termination of the
Revolver Commitments and/or termination of this Agreement and (c) if applicable, amounts due under Section 3.9. Notwithstanding
anything herein to the contrary, if Revolver Usage exceeds the Borrowing Base at any time, Borrowers shall, on Agent’s demand,
repay Revolver Loans in an amount sufficient to reduce Revolver Usage to the Borrowing Base. If any Asset Disposition includes the disposition
of Accounts, Inventory or Equipment, Borrowers shall apply Net Proceeds to repay Revolver Loans equal to the greater of (x) the net book
value of such Accounts, Inventory and Equipment, or (y) the reduction in Borrowing Base resulting from such disposition. Concurrently
with the receipt of any proceeds of insurance or condemnation awards paid in respect of any Equipment, Borrowers shall apply such proceeds
to repay Revolver Loans.


 


5.3              
Certain Mandatory Prepayments.


 


5.3.1         
Subject to Section 5.3.3, concurrently with any Permitted Asset Disposition of Equipment or Real Estate, Borrowers
shall prepay Revolver Loans in an amount equal to the Net Proceeds of such disposition.


 


5.3.2         
Subject to Section 5.3.3, concurrently with the receipt of any proceeds of insurance or condemnation awards paid
in respect of any Equipment or Real Estate, Borrowers shall prepay Revolver Loans in an amount equal to such proceeds, subject to Section
8.6.2.


 


5.3.3         
For the avoidance of doubt, no prepayment shall be required pursuant to this Section 5.3 to the extent the Net Proceeds
of a Permitted Asset Disposition (or insurance or condemnation award) of Equipment or Real Estate subject to a Purchase Money Lien are
required to be applied to repay obligations with respect to any Permitted Purchase Money Debt pursuant to the documentation governing
such Permitted Purchase Money Debt.


 


5.3.4         
No mandatory prepayment required under this Section 5.3 which does not result in a termination or reduction of the
Commitments shall require the payment of a Prepayment Fee.


 


5.4              
Payment of Other Obligations. Obligations other than Loans, including LC Obligations and Extraordinary
Expenses, shall be paid by Borrowers as provided in the Loan Documents or, if no payment date is specified, on demand.


 


 


 


 






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5.5              
Marshaling; Payments Set Aside. None of Agent or Lenders shall be under any obligation to marshal any
assets in favor of any Obligor or against any Obligations. If any payment by or on behalf of Borrowers is made to Agent, Issuing Bank
or any Lender, or if Agent, Issuing Bank or any Lender exercises a right of setoff, and any of such payment or setoff is subsequently
invalidated, declared to be fraudulent or preferential, set aside or required (including pursuant to any settlement entered into by Agent,
Issuing Bank or a Lender in its discretion) to be repaid to a trustee, receiver or any other Person, then the Obligation originally intended
to be satisfied, and all Liens, rights and remedies relating thereto, shall be revived and continued in full force and effect as if such
payment or setoff had not occurred.


 


5.6              
Application and Allocation of Payments.


 


5.6.1         
Application. Payments made by Borrowers hereunder (including, for avoidance of doubts pursuant to Section 5.7)
shall be applied (a) first, as specifically required hereby; (b) second, to Obligations then due and owing; (b) third,
subject to Section 5.2, to other Obligations specified by Borrowers; and (c) fourth, as determined by Agent in its discretion.


 


5.6.2         
Post-Default Allocation. Notwithstanding anything in any Loan Document to the contrary, during an Event of Default
under Section 11.1(j), or during any other Event of Default at the discretion of (including, for avoidance of doubt, pursuant to
Section 5.7) Agent or Required Lenders, monies to be applied to the Obligations, whether arising from payments by Obligors, realization
on Collateral, setoff or otherwise, shall be allocated as follows:


 


(a)               
first, to all fees, indemnification, costs and expenses, including Extraordinary Expenses, owing to Agent;


 


(b)               
second, to all other amounts owing to Agent, including Swingline Loans, Protective Advances, and Loans and participations
that a Defaulting Lender has failed to settle or fund;


 


(c)               
third, to all amounts owing to Issuing Bank;


 


(d)               
fourth, to all Obligations (other than Secured Bank Product Obligations) constituting fees, indemnification, costs
or expenses owing to Lenders;


 


(e)               
fifth, to all Obligations (other than Secured Bank Product Obligations) constituting interest;


 


(f)                
sixth, to Cash Collateralize all LC Obligations;


 


(g)               
seventh, to all Loans, and to Secured Bank Product Obligations arising under Hedge Agreements (including Cash Collateralization
thereof) up to the amount of the Bank Product Reserve existing therefor;


 


(h)               
eighth, to all other Secured Bank Product Obligations;


 


(i)                 
ninth, to all remaining Obligations; and


 


(j)                 
last, after Full Payment of all Obligations, any remaining amounts will be paid to the Borrowers.


 


Amounts shall be applied to payment of each category
of Obligations only after Full Payment of amounts payable from time to time under all preceding categories. If amounts are insufficient
to satisfy a category, they shall be paid ratably among outstanding Obligations in the category. Monies and proceeds obtained from an
Obligor shall not be applied to its Excluded Swap Obligations, but appropriate adjustments shall be made with respect to amounts obtained
from other Obligors to preserve the allocations in each category. Agent shall have no obligation to calculate the amount of any Secured
Bank Product Obligation and may request a reasonably detailed calculation thereof from a Secured Bank Product Provider. If the provider
fails to deliver the calculation within five days following request, Agent may assume the amount is zero. The allocations set forth in
this Section are solely to determine the rights and priorities among Secured Parties, and may be changed by agreement of the affected
Secured Parties, without the consent of any Obligor. This Section is not for the benefit of or enforceable by any Obligor, and each Borrower
irrevocably waives the right to direct the application of any payments or Collateral proceeds subject to this Section, other than under
clause (j) above if Full Payment of all Obligations has occurred.


 


 


 






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5.6.3         
Erroneous Application. Agent shall not be liable for any application of amounts made by it in good faith and, if
any such application is subsequently determined to have been made in error, the sole recourse of any Lender or other Person to which such
amount should have been paid shall be to recover the amount from the Person that actually received it (and, if such amount was received
by a Secured Party, the Secured Party agrees to return it).


 


5.7              
Dominion Account. The ledger balance in each Dominion Account as of the end of a Business Day
shall be applied to the Obligations at the beginning of the next Business Day, and for purposes of computing interest on the Obligations,
such application shall be deemed to be applied by Agent two (2) Business Days after receipt thereof (but it being understood, for the
avoidance of doubt, such application shall be deemed to be applied by Agent immediately after receipt thereof for purposes of calculating
the Borrowing Base); provided, however, such application shall only be made to the extent that after giving effect to such application
the average outstanding principal balance of the Revolver Usage and other Loans for the immediately prior thirty (30) day period would
be equal to or more than the Minimum Balance. Any resulting credit balance shall not accrue interest in favor of Borrowers and shall
be made available to Borrowers as long as no Default or Event of Default exists.


 


5.8              
Account Stated. Agent shall maintain, in accordance with its customary practices, loan account(s)
evidencing the Debt of Borrowers hereunder. Any failure of Agent to record anything in a loan account, or any error in doing so, shall
not limit or otherwise affect the obligation of Borrowers to pay any amount owing hereunder. Entries made in a loan account shall constitute
presumptive evidence of the information contained therein. If any information contained in a loan account is provided to or inspected
by any Person, the information shall be conclusive and binding on such Person for all purposes absent manifest error, except to the extent
such Person notifies Agent in writing within 30 days after receipt or inspection that specific information is subject to dispute.


 


5.9              
Taxes.


 


5.9.1         
Payments Free of Taxes; Obligation to Withhold; Tax Payment.


 


(a)               
All payments of Obligations by Obligors shall be made without deduction or withholding for any Taxes, except as required
by Applicable Law. If Applicable Law (as determined by Agent in its discretion) requires the deduction or withholding of any Tax from
any such payment by Agent or an Obligor, then Agent or such Obligor shall be entitled to make such deduction or withholding based on information
and documentation provided pursuant to Section 5.10.


 


(b)               
If Agent or any Obligor is required by the Code to withhold or deduct Taxes, including backup withholding and withholding
taxes, from any payment, then (i) Agent shall pay the full amount that it determines is to be withheld or deducted to the relevant Governmental
Authority pursuant to the Code, and (ii) to the extent the withholding or deduction is made on account of Indemnified Taxes, the sum payable
by the applicable Obligor shall be increased as necessary so that the Recipient receives an amount equal to the sum it would have received
had no such withholding or deduction been made.


 


(c)               
If Agent or any Obligor is required by any Applicable Law other than the Code to withhold or deduct Taxes from any payment,
then (i) Agent or such Obligor, to the extent required by Applicable Law, shall timely pay the full amount to be withheld or deducted
to the relevant Governmental Authority, and (ii) to the extent the withholding or deduction is made on account of Indemnified Taxes, the
sum payable by the applicable Obligor shall be increased as necessary so that the Recipient receives an amount equal to the sum it would
have received had no such withholding or deduction been made.


 


5.9.2         
Payment of Other Taxes. Without limiting the foregoing, Borrowers shall timely pay to the relevant Governmental Authority
in accordance with Applicable Law, or at Agent’s option, timely reimburse Agent for payment of, any Other Taxes.


 


5.9.3         
Tax
Indemnification.


 


 


 






    	 	42	 



     


    

 


(a)               
The Obligors shall indemnify and hold harmless, on a joint and several basis, each Recipient against any Indemnified Taxes
(including those imposed or asserted on or attributable to amounts payable under this Section) payable or paid by a Recipient or required
to be withheld or deducted from a payment to a Recipient, and reasonable expenses arising therefrom or with respect thereto (including
reasonable attorneys' and tax advisors' fees and expenses), whether or not such Indemnified Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority. Each Borrower shall indemnify and hold harmless Agent against any amount that a Lender
or Issuing Bank fails for any reason to pay indefeasibly to Agent as required pursuant to this Section. Borrower shall make payment within
ten (10) days after demand for any amount or liability payable under this Section. A certificate as to the amount of such payment or liability
delivered to any Borrower by a Lender or Issuing Bank (with a copy to Agent), or by Agent on its own behalf or on behalf of any Recipient,
shall be conclusive absent manifest error.


 


(b)               
Each Lender and Issuing Bank shall indemnify and hold harmless, on a several basis, Agent (i) against any Indemnified Taxes
attributable to such Lender or Issuing Bank (but only to the extent Borrowers have not already paid or reimbursed Agent therefor and without
limiting Borrowers' obligation to do so), (ii) against any Taxes attributable to such Lender's failure to maintain a Participant Register
as required hereunder, and (iii) against any Excluded Taxes attributable to such Lender or Issuing Bank, in each case, that are payable
or paid by Agent in connection with any Obligations or any Loan Document, and any reasonable expenses arising therefrom or with respect
thereto (including reasonable attorneys' and tax advisors' fees and expenses), whether or not such Taxes were correctly or legally imposed
or asserted by the relevant Governmental Authority. Each Lender and Issuing Bank shall make payment within ten (10) days after demand
for any amount or liability payable under this Section. A certificate as to the amount of such payment or liability delivered to any Lender
or Issuing Bank by Agent shall be conclusive absent manifest error.


 


5.9.4         
Treatment of Certain Refunds. Unless required by Applicable Law, at no time shall Agent
have any obligation to file for or otherwise pursue on behalf of a Lender or Issuing Bank, nor have any obligation to pay to any Lender
or Issuing Bank, any refund of Taxes withheld or deducted from funds paid for the account of a Lender or Issuing Bank. If a Recipient
determines in its sole discretion exercised in good faith that it has received a refund of Taxes that were indemnified by the Obligors
or with respect to which an Obligor paid additional amounts pursuant to this Section, it shall pay the amount of such refund to Borrower
Agent (but only to the extent of indemnity payments or additional amounts actually paid by the Obligors with respect to the Taxes giving
rise to the refund), net of all out-of-pocket expenses (including Taxes) incurred by such Recipient and without interest (other than interest
paid by the relevant Governmental Authority with respect to such refund). The Obligors shall, upon request by the Recipient, repay to
the Recipient such amount paid over to Borrower Agent (plus any penalties, interest or other charges imposed by the relevant Governmental
Authority) if the Recipient is required to repay such refund to the Governmental Authority. Notwithstanding anything herein to the contrary,
no Recipient shall be required to pay any amount under this Section 5.9.4, if such payment would place it in a less favorable net
after-Tax position than it would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted,
withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. In
no event shall Agent or any Recipient be required to make its Tax returns (or any other information relating to its Taxes that it deems
confidential) available to any Obligor or other Person.


 


5.9.5         
Survival. Each party's obligations under Sections 5.9 and 5.10 shall
survive the resignation or replacement of Agent or any assignment of rights by or replacement of a Lender or Issuing Bank, the termination
of the Commitments, and the repayment, satisfaction, discharge or Full Payment of any Obligations.


 


5.10           
Lender Tax Information.


 


5.10.1      
Status of Lenders. Any Lender that is entitled to an exemption from or reduction of withholding Tax with respect
to payments of Obligations shall deliver to Borrowers and Agent properly completed and executed documentation reasonably requested by
Borrowers or Agent as will permit such payments to be made without or at a reduced rate of withholding. In addition, any Lender, if reasonably
requested by Borrowers or Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by Borrowers
or Agent to enable them to determine whether such Lender is subject to backup withholding or information reporting requirements. Notwithstanding
the foregoing, such documentation (other than documentation described in Sections 5.10.2(a), (b) and (d)) shall not be required
if a Lender reasonably believes delivery of the documentation would subject it to any material unreimbursed cost or expense or would materially
prejudice its legal or commercial position.


 


 


 






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5.10.2      
Documentation. Without limiting the foregoing, if any Borrower is a U.S. Person,


 


(a)               
Any Lender that is a U.S. Person shall deliver to Borrowers and Agent on or prior to the date on which such Lender becomes
a Lender hereunder (and from time to time thereafter upon reasonable request of Borrowers or Agent), executed copies of IRS Form W-9,
certifying that such Lender is exempt from U.S. federal backup withholding Tax;


 


(b)               
Any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Borrowers and Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender hereunder (and
from time to time thereafter upon reasonable request of Borrowers or Agent), whichever of the following is applicable:


 


(i)                 
in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party, (x)
with respect to payments of interest under any Loan Document, executed copies of IRS Form W-8BENE establishing an exemption from or reduction
of U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty, and (y) with respect to other payments
under the Loan Documents, IRS Form W-8BENE establishing an exemption from or reduction of U.S. federal withholding Tax pursuant to the
“business profits” or “other income” article of such tax treaty;


 


(ii)               
executed copies of IRS Form W-8ECI;


 


(iii)             
in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the
Code, (x) a certificate in form satisfactory to Agent to the effect that such Foreign Lender is not a “bank” within the meaning
of Section 881(c)(3)(A) of the Code, a “10 percent shareholder” of a Borrower within the meaning of Section 881(c)(3)(B) of
the Code, or a “controlled foreign corporation” described in Section 881(c)(3)(C) of the Code (“U.S. Tax Compliance
Certificate”), and (y) executed copies of IRS Form W-8BENE; or


 


(iv)             
to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form
W-8ECI, IRS Form W-8BENE, a U.S. Tax Compliance Certificate in form satisfactory to Agent, IRS Form W-9, and/or other certification documents
from each beneficial owner, as applicable; provided that if the Foreign Lender is a partnership and one or more of its direct or
indirect partners is claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate on behalf
of each such partner;


 


(c)               
any Foreign Lender shall, to the extent it is legally entitled to do so, deliver to Borrowers and Agent (in such number
of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender becomes a Lender hereunder (and
from time to time thereafter upon reasonable request), executed copies of any other form prescribed by Applicable Law as a basis for claiming
exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be
prescribed by Applicable Law to permit Borrowers or Agent to determine the withholding or deduction required to be made; and


 


(d)               
if payment of an Obligation to a Lender would be subject to U.S. federal withholding Tax imposed by FATCA if such Lender
were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of
the Code), such Lender shall deliver to Borrowers and Agent, at the time(s) prescribed by law and otherwise upon reasonable request, such
documentation prescribed by Applicable Law (including Section 1471(b)(3)(C)(i) of the Code) and such additional documentation as may be
appropriate for Borrowers or Agent to comply with their obligations under FATCA and to determine that such Lender has complied with its
obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (d), “FATCA”
shall include any amendments made to FATCA after the date hereof.


 


5.10.3      
Redelivery of Documentation. If any form or certification previously delivered by a Lender pursuant to this Section
expires or becomes obsolete or inaccurate in any respect, such Lender shall promptly update the form or certification or notify Borrowers
and Agent in writing of its inability to do so.


 


 


 






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5.11           
Nature and Extent of Each Borrower’s Liability.


 


5.11.1      
Joint and Several Liability. Each Borrower agrees that it is jointly and severally liable for, and absolutely and
unconditionally guarantees to Agent and Lenders the prompt payment and performance of, all Obligations and all agreements under the Loan
Documents, except its Excluded Swap Obligations. Each Borrower agrees that its guaranty obligations hereunder constitute a continuing
guaranty of payment and not of collection, that such obligations shall not be discharged until Full Payment of the Obligations, and that
such obligations are absolute and unconditional, irrespective of (a) the genuineness, validity, regularity, enforceability, subordination
or any future modification of, or change in, any Obligations or Loan Document, or any other document, instrument or agreement to which
any Obligor is or may become a party or be bound; (b) the absence of any action to enforce this Agreement (including this Section) or
any other Loan Document, or any waiver, consent or indulgence of any kind by Agent or any Lender with respect thereto; (c) the existence,
value or condition of, or failure to perfect a Lien or to preserve rights against, any security or guaranty for any Obligations or any
action, or the absence of any action, by Agent or any Lender in respect thereof (including the release of any security or guaranty); (d)
the insolvency of any Obligor; (e) any election by Agent or any Lender in an Insolvency Proceeding for the application of Section 1111(b)(2)
of the Bankruptcy Code; (f) any borrowing or grant of a Lien by any other Borrower, as debtor-in-possession under Section 364 of the Bankruptcy
Code or otherwise; (g) the disallowance of any claims of Agent or any Lender against any Obligor for the repayment of any Obligations
under Section 502 of the Bankruptcy Code or otherwise; or (h) any other action or circumstances that might otherwise constitute a legal
or equitable discharge or defense of a surety or guarantor, except Full Payment of the Obligations.


 


5.11.2      
Waivers.


 


(a)               
Each Borrower expressly waives all rights that it may have now or in the future under any statute, at common law, in equity
or otherwise, to compel Agent or Lenders to marshal assets or to proceed against any Obligor, other Person or security for the payment
or performance of any Obligations before, or as a condition to, proceeding against such Borrower. Each Borrower waives all defenses available
to a surety, guarantor or accommodation co-obligor other than Full Payment of Obligations and waives, to the maximum extent permitted
by law, any right to revoke any guaranty of Obligations as long as it is a Borrower. It is agreed among each Borrower, Agent and Lenders
that the provisions of this Section 5.11 are of the essence of the transaction contemplated by the Loan Documents and that, but
for such provisions, Agent and Lenders would decline to make Loans and issue Letters of Credit. Each Borrower acknowledges that its guaranty
pursuant to this Section is necessary to the conduct and promotion of its business, and can be expected to benefit such business.


 


(b)               
Agent may, in its discretion, pursue such rights and remedies as they deem appropriate, including realization upon Collateral
by judicial foreclosure or nonjudicial sale or enforcement, without affecting any rights and remedies under this Section 5.11.
If, in taking any action in connection with the exercise of any rights or remedies, Agent or any Lender shall forfeit any other rights
or remedies, including the right to enter a deficiency judgment against any Borrower or other Person, whether because of any Applicable
Laws pertaining to “election of remedies” or otherwise, each Borrower consents to such action and waives any claim based upon
it, even if the action may result in loss of any rights of subrogation that any Borrower might otherwise have had. Any election of remedies
that results in denial or impairment of the right of Agent or any Lender to seek a deficiency judgment against any Borrower shall not
impair any other Borrower’s obligation to pay the full amount of the Obligations. Each Borrower waives all rights and defenses arising
out of an election of remedies, such as nonjudicial foreclosure with respect to any security for Obligations, even though that election
of remedies destroys such Borrower’s rights of subrogation against any other Person. Agent may bid Obligations, in whole or part,
at any foreclosure, trustee or other sale, including any private sale, and the amount of such bid need not be paid by Agent but shall
be credited against the Obligations. The amount of the successful bid at any such sale, whether Agent or any other Person is the successful
bidder, shall be conclusively deemed to be the fair market value of the Collateral, and the difference between such bid amount and the
remaining balance of the Obligations shall be conclusively deemed to be the amount of the Obligations guaranteed under this Section
5.11, notwithstanding that any present or future law or court decision may have the effect of reducing the amount of any deficiency
claim to which Agent or any Lender might otherwise be entitled but for such bidding at any such sale.


 


 


 






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5.11.3      
Extent of Liability; Contribution.


 


(a)               
Notwithstanding anything herein to the contrary, each Borrower’s liability under this Section 5.11 shall not
exceed the greater of (i) all amounts for which such Borrower is primarily liable, as described in clause (c) below, and (ii) such Borrower’s
Allocable Amount.


 


(b)               
If any Borrower makes a payment under this Section 5.11 of any Obligations (other than amounts for which such Borrower
is primarily liable) (a “Guarantor Payment”) that, taking into account all other Guarantor Payments previously or concurrently
made by any other Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the aggregate Obligations
satisfied by such Guarantor Payments in the same proportion that such Borrower’s Allocable Amount bore to the total Allocable Amounts
of all Borrowers, then such Borrower shall be entitled to receive contribution and indemnification payments from, and to be reimbursed
by, each other Borrower for the amount of such excess, ratably based on their respective Allocable Amounts in effect immediately prior
to such Guarantor Payment. The “Allocable Amount” for any Borrower shall be the maximum amount that could then be recovered
from such Borrower under this Section 5.11 without rendering such payment voidable under Section 548 of the Bankruptcy Code or
under any applicable state fraudulent transfer or conveyance act, or similar statute or common law.


 


(c)               
Section 5.11.3(a) shall not limit the liability of any Borrower to pay or guarantee Loans made directly or indirectly
to it (including Loans advanced hereunder to any other Person and then re-loaned or otherwise transferred to, or for the benefit of, such
Borrower), LC Obligations relating to Letters of Credit issued to support its business, Secured Bank Product Obligations incurred to support
its business, and all accrued interest, fees, expenses and other related Obligations with respect thereto, for which such Borrower shall
be primarily liable for all purposes hereunder. Agent and Lenders shall have the right, at any time in their discretion, to condition
Loans and Letters of Credit upon a separate calculation of borrowing availability for each Borrower and to restrict the disbursement and
use of Loans and Letters of Credit to a Borrower based on that calculation.


 


(d)               
Each Obligor that is a Qualified ECP when its guaranty of or grant of Lien as security for a Swap Obligation becomes effective
hereby jointly and severally, absolutely, unconditionally and irrevocably undertakes to provide funds or other support to each Specified
Obligor with respect to such Swap Obligation as may be needed by such Specified Obligor from time to time to honor all of its obligations
under the Loan Documents in respect of such Swap Obligation (but, in each case, only up to the maximum amount of such liability that can
be hereby incurred without rendering such Qualified ECP’s obligations and undertakings under this Section 5.11 voidable under any
applicable fraudulent transfer or conveyance act). The obligations and undertakings of each Qualified ECP under this Section shall remain
in full force and effect until Full Payment of all Obligations. Each Obligor intends this Section to constitute, and this Section shall
be deemed to constitute, a guarantee of the obligations of, and a “keepwell, support or other agreement” for the benefit of,
each Obligor for all purposes of the Commodity Exchange Act.


 


5.11.4      
Joint Enterprise. Each Borrower has requested that Agent and Lenders make this credit facility available to Borrowers
on a combined basis, in order to finance Borrowers’ business most efficiently and economically. Borrowers’ business is a mutual
and collective enterprise, and the successful operation of each Borrower is dependent upon the successful performance of the integrated
group. Borrowers believe that consolidation of their credit facility will enhance the borrowing power of each Borrower and ease administration
of the facility, all to their mutual advantage. Borrowers acknowledge that Agent’s and Lenders’ willingness to extend credit
and to administer the Collateral on a combined basis hereunder is done solely as an accommodation to Borrowers and at Borrowers’
request.


 


5.11.5      
Subordination. Each Borrower hereby subordinates any claims, including any rights at law or in equity to payment,
subrogation, reimbursement, exoneration, contribution, indemnification or set off, that it may have at any time against any other Obligor,
howsoever arising, to the Full Payment of its Obligations.


 


 


 






    	 	46	 



     


    

 


SECTION
6.          CONDITIONS
PRECEDENT


 


6.1              
Conditions Precedent to Initial Loans. In addition to the conditions set forth in Section 6.2,
Lenders shall not be required to fund any requested Loan, issue any Letter of Credit, or otherwise extend credit to Borrowers hereunder,
until the date (“Closing Date”) that each of the following conditions has been satisfied:


 


(a)               
Each Loan Document shall have been duly executed and delivered to Agent by each of the signatories thereto, and each Obligor
shall be in compliance with all terms thereof.


 


(b)               
Agent shall have received acknowledgments of all filings or recordations necessary to perfect its Liens in the Collateral,
as well as UCC and Lien searches and other evidence satisfactory to Agent that such Liens are the only Liens upon the Collateral, except
Permitted Liens.


 


(c)               
Subject to Section 10.1.13 and Section 8.5, Agent shall have received a duly executed Deposit Account Control
Agreement with respect to each Obligor's existing Deposit Accounts, as well as duly executed agreements establishing each Dominion Account
and related lockbox, all in form and substance, and with financial institutions, satisfactory to Agent.


 


(d)               
Agent shall have received certificates, in form and substance satisfactory to it, from a knowledgeable Senior Officer of
each Borrower certifying that, after giving effect to the initial Loans and Transactions hereunder, (i) such Borrower is Solvent; (ii)
no Default or Event of Default exists; (iii) the representations and warranties set forth in Section 9 are true and correct; (iv)
such Borrower has complied with all agreements and conditions to be satisfied by it under the Loan Documents; (v) true, complete and correct
copies of any documentation evidencing or related to any Subordinated Debt are attached thereto; and (vi) true, complete and correct copies
of the Convertible Notes Documents are attached thereto.


 


(e)               
Agent shall have received a certificate of a duly authorized officer of each Obligor, certifying (i) that attached copies
of such Obligor’s Organic Documents are true and complete, and in full force and effect, without amendment except as shown; (ii)
that an attached copy of resolutions authorizing execution and delivery of the Loan Documents is true and complete, and that such resolutions
are in full force and effect, were duly adopted, have not been amended, modified or revoked, and constitute all resolutions adopted with
respect to this credit facility; and (iii) to the title, name and signature of each Person authorized to sign the Loan Documents. Agent
may conclusively rely on this certificate until it is otherwise notified by the applicable Obligor in writing.


 


(f)                
Agent shall have received a written opinion of Kane Russell Coleman Logan P.C., as well as any local counsel to Borrowers
or Agent, in form and substance satisfactory to Agent.


 


(g)               
Agent shall have received copies of the charter documents of each Obligor, certified by the Secretary of State or other
appropriate official of such Obligor’s jurisdiction of organization. Agent shall have received good standing certificates for each
Obligor, issued by the Secretary of State or other appropriate official of such Obligor’s jurisdiction of organization and each
jurisdiction where such Obligor’s conduct of business or ownership of Property necessitates qualification.


 


(h)               
Agent shall have received certificates of insurance with respect to each Obligor's property and liability insurance policies,
together with a loss payable endorsement naming Agent as a lender's loss payee with respect to each Obligor's property insurance, an additional
insured endorsement naming Agent as an additional insured with respect to each Obligor's liability insurance and a notice of cancellation
endorsement (or, at Agent’s discretion, other equivalent documentation in lieu of such notice of cancellation endorsement) in favor
of Agent with respect to each Obligor's liability insurance, all in compliance with the Loan Documents.


 


 


 






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(i)                 
Agent shall have completed and be satisfied with its business, financial and legal due diligence of Obligors, including
but not limited to, (i) a field examination of the books, records and operations of Borrowers and a roll-forward of such field examination;
(ii) management background review; (iii) receipt of consolidated audited financial statements of Borrowers and Subsidiaries
for the last three (3) Fiscal Years; (iv) review of Material Contracts of Borrowers and Subsidiaries; (v) receipt of a pro forma
balance sheet of Borrowers and Subsidiaries on a consolidated and consolidating basis, dated as of the Closing Date, which balance sheet
shall reflect no material changes from the most recent pro forma balance sheet of Borrowers and Subsidiaries previously delivered to Agent;
(vi) interim financial statements for Borrowers and Subsidiaries on a consolidated and consolidating basis as of a date not more
than thirty (30) days prior to the Closing Date; and (vii) monthly financial projections (in Microsoft Excel) of Borrowers and Subsidiaries
on a consolidated and consolidating basis for the Fiscal Years ending December 31, 2022 and December 31, 2023, and annual projections
(in Microsoft Excel) of Borrowers and Subsidiaries on a consolidated and consolidating basis for the next two (2) Fiscal Years ending
December 31, 2024 and December 31, 2025, including balance sheets, income statements, cash flow statements, estimated Borrowing Base and
Availability and financial covenant calculations (including Fixed Charge Coverage Ratio calculations, whether or not then required to
be tested under the Loan Documents) evidencing Borrowers’ ability to comply with the financial covenants in the Loan Documents.


 


(j)                 
Agent shall have received an Eligible Inventory Appraisal, in form and substance satisfactory to Agent.


 


(k)               
No material adverse change in the business, assets, properties, liabilities, operations or condition of Borrowers and Subsidiaries,
taken as a whole, or of any Obligor, or in the quality, quantity or value of any Collateral, shall have occurred since December 31, 2021.


 


(l)                 
Borrowers shall have paid all fees and expenses to be paid to Agent and Lenders on the Closing Date.


 


(m)             
Agent shall have received a Borrowing Base Report as of September 30, 2022. Upon giving effect to the initial funding of
Loans and issuance of Letters of Credit, and the payment by Borrowers of all fees and expenses incurred in connection herewith, as well
as any payables stretched beyond their customary payment practices, the sum of (x) Availability on the Closing Date and (y) Qualified
Cash of the Borrowers on the Closing Date shall be at least $25,000,000.


 


(n)               
Agent shall have received evidence that the loans and other obligations under the Existing Loan Documentation and under
any other agreements with respect to any Debt not permitted pursuant to Section 10.2.1 hereof have been repaid or will be repaid
with the initial Loans made hereunder on the Closing Date and the commitments thereunder have been terminated, and the Agent shall have
received a customary payoff letter in form and substance reasonably satisfactory to it relating to the termination (or assignment to the
Agent) of all mortgages, financing statements, and liens associated therewith.


 


(o)               
Agent shall have received a copy, certified by a Senior Officer of the Borrower Agent as true and complete, of the Convertible
Notes Documents and the documentation evidencing, securing or in any way related to the Subordinated Debt, in each case, including schedules
and exhibits thereto and together with all amendments, modifications, supplements and waivers thereto along with subordination agreements,
in form and substance satisfactory to the Agent with respect to any Subordinated Debt listed on Schedule 6.1 of the Disclosure
Certificate.


 


(p)               
Agent and Lenders, shall have each received at least 10 Business Days prior to the Closing Date, all documentation and other
information about the Obligors required under applicable "know your customer" and anti-money laundering rules and regulations,
including the PATRIOT Act, that has been requested by the Agent and the Lenders at least 10 Business Days prior to the Closing Date.


 


(q)               
No action, suit, investigation, litigation or proceeding pending or threatened in any court or before any arbitrator or
Governmental Authority that, in Agent’s judgment, (i) could reasonably be expected to have a Material Adverse Effect or (ii) could
reasonably be expected to materially and adversely affect the transactions contemplated by this Agreement and the other Loan Documents.


 


 


 






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(r)                
Agent shall be satisfied with the ownership, organizational, legal, tax management, capitalization, and capital structure
of Borrowers and Subsidiaries after giving effect to the Transactions.


 


(s)                
The respective credit committees of each Lender shall have approved the provision of the credit facilities under this Agreement.


 


(t)                 
Agent shall have received evidence that Borrowers have received all governmental and third party consents and approvals
as may be appropriate in connection with the transactions contemplated by this Agreement and the Loan Documents.


 


(u)               
Agent shall have received evidence reasonably acceptable to Agent that Borrowers have provided daily written wire instructions
to the relevant depository bank to transfer all funds in its Dominion Accounts to Agent for application to the Obligations in accordance
with Section 5.7 hereof.


 


6.2              
Conditions Precedent to All Credit Extensions. Agent, Issuing Bank and Lenders shall in no event
be required to make any credit extension hereunder (including funding any Loan, arranging any Letter of Credit, or granting any other
accommodation to or for the benefit of any Borrower), if the following conditions are not satisfied on such date and upon giving effect
thereto:


 


(a)               
No Default or Event of Default exists;


 


(b)               
The representations and warranties of each Obligor in the Loan Documents are true and correct (except for representations
and warranties that relate solely to an earlier date);


 


(c)               
All conditions precedent in any Loan Document are satisfied;


 


(d)               
No event has occurred or circumstance exists that has or could reasonably be expected to have a Material Adverse Effect;


 


(e)               
With respect to a Letter of Credit issuance, all LC Conditions are satisfied; and


 


(f)                
With respect to any credit extension (including funding any Loan, arranging any Letter of Credit, or granting any other
accommodation to or for the benefit of any Borrower) after giving effect to which the aggregate principal amount of the Obligations outstanding
under the Loan Documents would exceed $25,000,000, (i) no Default or Event of Default (each as defined in the Convertible Notes Indenture)
has occurred and is continuing or would occur as a consequence of such credit extension and (ii) so long as any Convertible Notes (or
any Refinancing Debt with respect thereto) remain in effect, the Consolidated Leverage Ratio (as defined in the Convertible Notes Indenture
or any equivalent documentation with respect to any Refinancing Debt with respect thereto), is less than or equal to 4.00:1.00.


 


Each request (or deemed request) by a Borrower
for any credit extension shall constitute a representation by Borrowers that the foregoing conditions are satisfied on the date of such
request and on the date of the credit extension. As an additional condition to a credit extension, Agent may request any other information,
certification, document, instrument or agreement as it deems appropriate.


 


SECTION
7.          COLLATERAL


 


7.1              
Grant of Security Interest. To secure the prompt payment and performance of its Obligations, each Obligor
hereby grants to Agent, for the benefit of Secured Parties, a continuing security interest in and Lien upon all Property (excluding Real
Estate) of such Obligor, including all of the following Property, whether now owned or hereafter acquired, and wherever located:


 


(a)               
all Accounts;


 


(b)               
all Chattel Paper, including electronic chattel paper;


 


 


 






    	 	49	 



     


    

 


(c)               
all Commercial Tort Claims, including those shown on Schedule 9.1.16 of the Disclosure Certificate;


 


(d)               
all Deposit Accounts, commodity accounts and securities accounts, including all checks, cash and other evidence of payment,
and all financial assets and funds or Property held on deposit therein;


 


(e)               
all Documents;


 


(f)                
all General Intangibles, including Intellectual Property;


 


(g)               
all Goods, including Inventory and Equipment;


 


(h)               
[reserved];


 


(i)                 
all Instruments;


 


(j)                 
all Investment Property;


 


(k)               
all Letter-of-Credit Rights;


 


(l)                 
all Supporting Obligations;


 


(m)             
all monies, whether or not in the possession or under the control of Agent, a Lender, or a bailee or Affiliate of Agent
or a Lender, including any Cash Collateral;


 


(n)               
all accessions to, substitutions for, and all replacements, products, and cash and non-cash proceeds of the foregoing, including
proceeds of and unearned premiums with respect to insurance policies, and claims against any Person for loss, damage or destruction of
any Collateral; and


 


(o)               
all books and records (including customer lists, blueprints, technical specifications, manuals, files, correspondence, tapes,
computer programs, print-outs, computer records, disks and other electronic storage media and related data processing software and similar
items that at any time evidence or contain information relating to the Collateral or are otherwise necessary or helpful in the collection
or realization thereupon) pertaining to the foregoing,


 


provided, however, that Real Estate excluded from the
Collateral described above shall not include any proceeds of such Real Estate (unless such proceeds also constitute Real Estate).


 


7.2              
Lien on Deposit Accounts; Cash Collateral.


 


7.2.1         
Deposit Accounts. To further secure the prompt payment and performance of its Obligations, each Obligor hereby grants
to Agent a continuing security interest in and Lien upon all amounts credited to any Deposit Account of such Obligor, including sums in
any blocked, lockbox, sweep or collection account. Each Obligor hereby authorizes and directs each bank or other depository to deliver
to Agent, upon request, all balances in any Deposit Account maintained for such Obligor, without inquiry into the authority or right of
Agent to make such request.


 


 


 






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7.2.2         
Cash Collateral. Cash Collateral may be invested, at Agent’s discretion (with the consent of Obligors, provided
no Event of Default exists), but Agent shall have no duty to do so, regardless of any agreement or course of dealing with any Obligor,
and shall have no responsibility for any investment or loss. As security for its Obligations, each Obligor hereby grants to Agent a security
interest in and Lien upon all Cash Collateral delivered hereunder from time to time, whether held in a segregated cash collateral account
or otherwise. Agent may apply Cash Collateral to payment of such Obligations as they become due, in such order as Agent may elect. All
Cash Collateral, all proceeds thereof, and related deposit accounts shall be under the sole dominion and control of Agent, and no Obligor
or other Person shall have any right to any Cash Collateral or proceeds thereof until Full Payment of the Obligations (after which time,
such Cash Collateral and proceeds thereof shall belong to the Obligors to the extent not previously applied to the Obligations).


 


7.3              
[Reserved].


 


7.4              
Other Collateral.


 


7.4.1         
Commercial Tort Claims. Obligors shall promptly notify Agent in writing if any Obligor has a Commercial Tort Claim
(other than, as long as no Default or Event of Default exists, a Commercial Tort Claim for less than $100,000), shall promptly amend Schedule
9.1.16 of the Disclosure Certificate to include such claim, and shall take such actions as Agent deems appropriate to subject such
claim to a duly perfected, first priority Lien in favor of Agent.


 


7.4.2         
Certain After-Acquired Collateral. Obligors shall promptly notify Agent in writing if, after the Closing Date, any
Obligor obtains any interest in any Collateral consisting of Deposit Accounts, Chattel Paper, Documents, Instruments, Intellectual Property,
Investment Property or Letter-of-Credit Rights and, upon Agent’s request, shall promptly take such actions as Agent deems appropriate
to effect Agent’s duly perfected, first priority Lien upon such Collateral, including obtaining any appropriate possession, control
agreement or Lien Waiver. If any Collateral is in the possession of a third party, at Agent’s request, Obligors shall obtain an
acknowledgment that such third party holds the Collateral for the benefit of Agent.


 


7.5              
Equity Interests. Agent shall receive a first priority pledge of all Equity Interests owned by each Obligor,
and of each Domestic Subsidiary and each first-tier CFC (subject to the last sentence of this Section 7.5), together with
such additional agreements and documents as are necessary to perfect Agent's Lien on such Equity Interests. Each Obligor hereby pledges,
collaterally assigns, transfers and conveys, and grants a security interest in and Lien on, in favor of the Agent, for the benefit of
the Secured Parties, all of such Obligor’s right, title and interest in, to (A) the Equity Interests of each Domestic Subsidiary
and each first-tier CFC (subject to the last sentence of this Section 7.5), (B) any additional such Equity Interests acquired
after the date hereof (whether by purchase, dividend, distribution, merger, consolidation, sale of assets, split, spin-off, or any other
dividend or distribution of any kind or otherwise), (C) all distributions, dividends, cash, certificates, liquidation rights and interests,
options, rights, warrants, instruments or other property (whether real, personal or mixed) from time to time received, receivable or otherwise
distributed in respect of or in exchange or substitution for any and all of such Equity Interests, and all rights to receive any and all
income, gain, profit, loss or other items allocated or distributed to such Obligor by, to or from each Domestic Subsidiary and each first-tier
CFC (including, without limitation, under or pursuant to any such Subsidiary’s Organic Documents), and (D) all proceeds, products,
replacements and substitutions for any of the foregoing, in each case whether now owned or hereafter acquired by the Obligors. Notwithstanding
anything to the contrary contained herein, the Collateral shall include only 65% of the voting stock (or such higher percentage that would
not reasonably be expected to give rise to an adverse tax effect on any Obligor or owner of an Obligor) of any first-tier CFC, and none
of the Equity Interests of any lower-tier CFC.


 


7.6              
Limitations. The Lien on Collateral granted hereunder is given as security only and shall not subject
Agent or any Lender to, or in any way modify, any obligation or liability of Obligors relating to any Collateral. In no event shall the
grant of any Lien under any Loan Document secure an Excluded Swap Obligation of the granting Obligor.


 


7.7              
Further Assurances. All Liens granted to Agent under the Loan Documents are for the benefit of Secured
Parties. Promptly upon request, Obligors shall deliver such instruments and agreements, and shall take such actions, as Agent deems appropriate
under Applicable Law to evidence or perfect its Lien on any Collateral, or otherwise to give effect to the intent of this Agreement.
Each Obligor authorizes Agent to file any financing statement that describes the Collateral as “all assets” or “all
personal property” of such Obligor, or words to similar effect, and ratifies any action taken by Agent before the Closing Date
to effect or perfect its Lien on any Collateral.


 


 


 






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7.8              
Delivery of Pledged Securities; Certificated Securities


 


(a)               
If any of the Collateral consists of an Instrument, note or debt security with a principal amount of $250,000 or more, such Instrument,
note or debt security shall be delivered to the Agent (i) on the Closing Date (in the case of any such Collateral owned by an Obligor
on the Closing Date) or (ii) promptly after such Collateral is acquired (in the case of any other such Collateral) and in any event no
later than the later 10 days after such acquisition (or such later date as the Agent may agree in its discretion), in each case accompanied
by proper instruments of assignment duly executed by the applicable Obligor in blank in a manner and form reasonably satisfactory to the
Agent (in each case to the extent delivery of such instruments of assignment are customary under Applicable Law), to be held as Collateral
pursuant to this Agreement.


 


(b)               
If any of the Collateral consisting of Equity Interests of a Subsidiary of an Obligor is a “security” within the meaning
of Article 8 of the New York UCC and is or shall become evidenced or represented by any certificate, such certificate shall be delivered
to the Agent (i) on the Closing Date (in the case of any such Collateral owned by an Obligor that is evidenced or represented by a certificate
on the Closing Date) or (ii) in the case of any other such Collateral that is acquired or becomes evidenced or represented by a certificate
after the Closing Date, promptly after such Collateral is acquired or becomes so evidenced or represented and in any event no later than
10 days after such acquisition or representation or the date on which such Collateral becomes so evidenced or represented (or such later
date as the Agent may agree in its Permitted Discretion), in each case accompanied by undated stock powers or other instruments of transfer
duly executed by the applicable Obligor in blank in a manner and form reasonably satisfactory to the Agent, to be held as Collateral pursuant
to this Agreement.


 


(c)               
Each Obligor acknowledges and agrees that to the extent each interest in any limited liability company or limited partnership that
is a Subsidiary of an Obligor and pledged hereunder is a “security” within the meaning of Article 8 of the New York UCC and
is governed by Article 8 of the New York UCC or the Uniform Commercial Code of any other applicable jurisdiction, such interest shall
be (i) certificated and each such interest shall at all times hereafter continue to be such a security and represented by such certificate
or (ii) if not so certificated, subject to a control agreement in favor of the Agent. Each Obligor further acknowledges and agrees that
with respect to any interest in any limited liability company or limited partnership that is a Subsidiary of an Obligor and pledged hereunder
that is not a “security” within the meaning of Article 8 of the New York UCC or the Uniform Commercial Code of any other applicable
jurisdiction, such Obligor shall at no time elect to treat any such interest as a “security” within the meaning of Article
8 of the New York UCC or the Uniform Commercial Code of any other applicable jurisdiction, nor shall such interest be represented by a
certificate, unless such Obligor provides prompt written notification to the Agent of such election and such interest is thereafter represented
by a certificate that is delivered to the Agent (x) on the Closing Date (in the case of any such certificate owned by an Obligor on the
Closing Date), (y) promptly after such Collateral is acquired (in the case of any other such Collateral) and in any event no later than
10 days after such acquisition (or such later date as the Agent may agree in its Permitted Discretion), or (z) promptly after such interest
becomes represented by a certificate after the Closing Date (in the case Obligor elects to have such interest certificated after the dates
specified in clause (x) or (y), as applicable) and in any event no later than 10 days after such representation (or such later date as
the Agent may agree in its Permitted Discretion), in each case pursuant to the terms hereof.


 


7.9              
[Reserved].


 


7.10           
Remedial Provisions


 


7.10.1      
[Reserved].


 


7.10.2      
Pledged Equity Interests. 


 


 


 






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(a)               
Unless an Event of Default shall have occurred and be continuing and immediately upon Agent giving written notice to the
relevant Obligor of the Agent’s intent to exercise its corresponding rights pursuant to Section 7.10.2(b) (which notice
shall be deemed to have been given immediately upon the occurrence of an Event of Default under Section 11.1(j) of this Agreement
other than to the extent such right is waived or revoked in writing by the Required Lenders), each Obligor shall be permitted to (i) receive
all dividends, interest, principal or other payments or distributions paid or made in respect of the pledged Equity Interests, to the
extent not prohibited by this Agreement and (ii) exercise all voting and corporate or other ownership rights with respect to the pledged
Equity Interests; provided, however, that no vote shall be cast or corporate or other ownership right exercised or other action taken
which would reasonably be expected to materially and adversely affect the rights inuring to a holder of any pledged Equity Interests or
the rights and remedies of the Agent or the other Secured Parties under this Agreement or any other Loan Document or the ability of the
Secured Parties to exercise the same or which would violate any provision of this Agreement or any other Loan Document.


 


(b)               
If an Event of Default shall occur and be continuing and the Agent shall have given prior written notice to the Borrowers
of the Agent’s intent to execute its rights pursuant to this Section 7.10.2(b) (which notice shall be deemed to have
been given immediately upon the occurrence of an Event of Default under Section 11.1(j) of this Agreement other than to the
extent such right is waived or revoked in writing by the Required Lenders): (i) the Agent shall have the right to receive any and all
dividends, interest, principal or other payments or distributions paid in respect to the pledged Equity Interests included in the Collateral
and make application thereof to the Obligations in accordance with the Loan Documents, (ii) all rights of each Obligor to exercise or
refrain from exercising the voting and other consensual rights which it would otherwise be entitled to exercise pursuant hereto shall
cease and all such rights shall thereupon become vested in the Agent which shall thereupon have the sole right, but shall be under no
obligation, to exercise or refrain from exercising such voting and other consensual rights and (iii) the Agent shall have the right, without
notice to any Obligor, to transfer all or any portion of the Investment Property included in the Collateral to its name or the name of
its nominee or agent or the name of the applicable Obligor, endorsed or assigned in blank in favor of the Agent, and each Obligor will,
upon request, promptly give to the Agent copies of any notices or other communications received by it with respect to pledged Equity Interests
included in the Collateral registered in the name of such Obligor. In addition, if an Event of Default has occurred and is continuing,
the Agent shall have the right at any time, without notice to any Obligor, to exchange any certificates or instruments representing any
Investment Property included in the Collateral for certificates or instruments of smaller or larger denominations. In order to permit
the Agent to exercise the voting and other consensual rights which it may be entitled to exercise pursuant hereto and to receive all dividends
and other distributions which it may be entitled to receive hereunder if an Event of Default has occurred and is continuing, each Obligor
shall promptly execute and deliver (or cause to be executed and delivered) to the Agent all proxies, dividend payment orders and other
instruments as the Agent may from time to time reasonably request, and each Obligor acknowledges that the Agent may utilize the power
of attorney set forth herein. All dividends, interest, principal or other payments or distributions received by any Obligor contrary to
the provisions of this Section 7.10.2(b) shall be held for the benefit of the Agent, shall be promptly delivered to the Agent
promptly following demand in the same form as so received (with any necessary endorsement reasonably requested by the Agent).


 


(c)               
Any notice given by the Agent to the Borrowers or any other Obligor under this Section 7.10.2 (i) may be given
with respect to one or more of the Obligors at the same or different times and (ii) may suspend the rights of the Obligors under paragraph
(a) or (b) of this Section 7.10.2 in part without suspending all such rights (as specified by the Agent in its sole and absolute
discretion) and without waiving or otherwise affecting the Agent’s rights to give additional notices from time to time suspending
other rights so long as an Event of Default has occurred and is continuing.


 


(d)               
Each Obligor hereby authorizes and instructs each issuer of any pledged Equity Interests pledged by such Obligor hereunder
to (i) comply with any instruction received by it from the Agent in writing that (x) states that an Event of Default has occurred and
is continuing and (y) is otherwise in accordance with the terms of this Agreement, without any other or further instructions from such
Obligor, and each Obligor agrees that each Issuer shall be fully protected in so complying, and (ii) unless otherwise expressly permitted
hereby, pay any dividends or other payments with respect to the pledged Equity Interests directly to the Agent.


 


 


 






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7.10.3      
Proceeds to be Turned Over to Agent. If an Event of Default shall occur and be continuing,
at the written request of the Agent, all proceeds of Collateral received by any Obligor consisting of cash, Cash Equivalents and checks
shall be held in trust by such Obligor for the Secured Parties, and shall, forthwith upon receipt by such Obligor, be turned over to
the Agent in the exact form received by such Obligor (duly endorsed by such Obligor to the Agent, if reasonably required). All such proceeds
of Collateral received by the Agent under this Section 7.10.3 shall be held by the Agent in a Dominion Account maintained
under its control (as defined in and subject to Section 9-104 of the New York UCC). All such Proceeds while held by the Agent in
a Dominion Account (or by such Obligor for the Secured Parties) shall continue to be held as collateral security for all the Obligations
and shall not constitute payment thereof until applied as provided in the Loan Documents.


 


SECTION
8.          COLLATERAL
ADMINISTRATION


 


8.1              
Borrowing Base Reports. Borrowers shall deliver to Agent (and Agent shall promptly deliver same to Lenders)
a (x) Borrowing Base Report as of the close of business of the previous month by the fifteenth day of each month (or, with respect
to the Borrowing Base Report as of the close of business of the month ending October 31, 2022, by November 30, 2022) and at such other
times as Agent may request (including, without limitation, following the occurrence and during the continuance of any Event of Default)
and (y) commencing on December 7, 2022 with respect to the week ending December 2, 2022, roll-forwards of all invoiced Accounts and collections
and Inventory reports, together with accounts payable aging, in each case, as of the close of business of the previous week by the third
(3rd) Business Day of each week (it being understood and agreed that with respect to the first weekly reports delivered hereunder
on December 7, 2022, with respect to the week ending December 2, 2022, no roll-forwards shall be required). Each Borrowing Base Report
shall (a) be accompanied by schedules which provide detail supporting such Borrowing Base Report, including, without limitation, an accounts
receivable aging, accounts payable aging, sales/invoice registers and collection journals, and a detailed report of all Accounts that
are not Eligible Accounts and (b) include a current Schedule 8.6.1 of the Disclosure Certificate, which has been updated as of
the end of the immediately preceding month in accordance with Section 8.6.1, all in form and substance satisfactory to Agent in
its discretion. All information (including a calculation of Availability and Qualified Cash) in a Borrowing Base Report shall be certified
by Borrowers. Agent may from time to time adjust such report (x) to reflect Agent’s reasonable estimate of declines in value of
Collateral, due to collections received in the Dominion Account or otherwise; (y) to adjust advance rates to reflect changes in dilution,
quality, mix and other factors affecting Collateral; and (z) to the extent any information or calculation does not comply with this Agreement.


 


8.2              
Accounts.


 


8.2.1         
Records and Schedules of Accounts. Each Borrower shall keep accurate and complete records of its Accounts, including
all payments and collections thereon, and shall submit to Agent sales, collection, reconciliation and other reports in form satisfactory
to Agent, on such periodic basis as Agent may request. Each Borrower shall also provide to Agent, on or before the 15th day of each month,
a detailed aged trial balance of all Accounts as of the end of the preceding month, specifying each Account’s Account Debtor name
and address, amount, invoice date and due date, showing any discount, allowance, credit, authorized return or dispute, and including such
proof of delivery, copies of invoices and invoice registers, copies of related documents, repayment histories, status reports and other
information as Agent may reasonably request. If Accounts in an aggregate face amount of $250,000 or more cease to be Eligible Accounts,
Borrowers shall notify Agent of such occurrence promptly (and in any event within one Business Day) after any Borrower has knowledge thereof.


 


8.2.2         
Taxes. If an Account of any Borrower includes a charge for any Taxes, Agent is authorized, in its discretion, to
pay the amount thereof to the proper taxing authority for the account of such Borrower and to charge Borrowers therefor; provided,
however, that neither Agent nor Lenders shall be liable for any Taxes that may be due from Borrowers or with respect to any Collateral.


 


 


 






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8.2.3         
Account Verification. Whether or not a Default or Event of Default exists, Agent shall have the right at any time,
in the name of Agent, any designee of Agent or any Borrower, to verify the validity, amount or any other matter relating to any Accounts
of Borrowers by mail, telephone or otherwise. Borrowers shall cooperate fully with Agent in an effort to facilitate and promptly conclude
any such verification process.


 


8.2.4         
Maintenance of Dominion Account. Obligors shall maintain Dominion Accounts pursuant to lockbox or other arrangements
acceptable to Agent. Obligors shall obtain an agreement (in form and substance satisfactory to Agent) from each lockbox servicer and Dominion
Account bank, establishing Agent's control over and Lien in the lockbox or Dominion Account, requiring immediate deposit of all remittances
received in the lockbox to a Dominion Account, and waiving offset rights of such servicer or bank, except for customary administrative
charges. If a Dominion Account is not maintained with Bank, Agent may require immediate transfer of all funds in such account to a Dominion
Account maintained with Bank. Agent and Lenders assume no responsibility to Obligors for any lockbox arrangement or Dominion Account,
including any claim of accord and satisfaction or release with respect to any Payment Items accepted by any bank. Obligors agree that
all Dominion Accounts shall be under the sole dominion and control of Agent and no Obligor may withdraw or transfer any funds on deposit
in any Dominion Account, other than in connection with a transfer of such funds to Agent, until Full Payment of the Obligations.


 


8.2.5         
Proceeds of Collateral. Obligors shall request in writing and otherwise take all necessary steps to ensure that all
payments on Accounts or otherwise relating to Collateral are made directly to a Dominion Account (or a lockbox relating to a Dominion
Account). If any Obligor or Subsidiary receives cash or Payment Items with respect to any Collateral, it shall hold same in trust for
Agent and promptly (not later than the next Business Day) deposit same into a Dominion Account.


 


8.3              
Inventory.


 


8.3.1         
Records and Reports of Inventory. Each Borrower shall keep accurate and complete records of its Inventory, including
costs and daily withdrawals and additions. Each Borrower shall provide to Agent, on or before the fifteenth day of each month, weekly
in accordance with Section 8.1, and at such other times as may be requested by the Agent, in each case as of the period then ended,
a schedule detailing the Borrowers’ Inventory, in form satisfactory to the Agent, (a) by location (showing Inventory in transit,
any Inventory located with a third party under any consignment, bailee arrangement, or warehouse agreement), by class (raw material, work-in-process
and finished goods), by product type, and by volume on hand, which Inventory shall be valued at the lower of cost (determined on a first-in,
first-out basis) or market and adjusted for Availability Reserves as the Agent has previously indicated to the Borrowers are deemed by
the Agent to be appropriate, (b) including a report of any variances or other results of Inventory counts performed by the Borrowers since
the last Inventory schedule (including information regarding sales or other reductions, additions, returns, credits issued by Borrowers
and complaints and claims made against the Borrowers), and (c) reconciled to the Borrowing Base Report delivered as of such day, and in
addition shall submit to Agent such other inventory and reconciliation reports in form satisfactory to Agent, on such periodic basis as
Agent may request. Each Borrower shall conduct a physical inventory at least once per calendar year (and on a more frequent basis if requested
by Agent when an Event of Default exists) and periodic cycle counts consistent with historical practices, and shall provide to Agent a
report based on each such inventory and count promptly upon completion thereof, together with such supporting information as Agent may
request. Agent may participate in and observe each physical count.


 


8.3.2         
Returns of Inventory. No Borrower shall return any Inventory to a supplier, vendor or other Person, whether for cash,
credit or otherwise, unless (a) such return is in the Ordinary Course of Business; (b) no Default or Event of Default exists or would
result therefrom and Revolver Usage is not in excess of the Borrowing Base and Revolver Usage would not result therefrom in being in excess
of the Borrowing Base; (c) Agent is promptly notified if the aggregate Value of all Inventory returned in any month exceeds $250,000;
and (d) any payment received by a Borrower for a return is promptly remitted to a Dominion Account or related lockbox.


 


 


 






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8.3.3         
Acquisition, Sale and Maintenance. No Borrower shall acquire or accept any Inventory on consignment or approval,
and shall take all steps to assure that all Inventory is produced in accordance with Applicable Law, including the FLSA. No Borrower shall
sell any Inventory on consignment or approval or any other basis under which the customer may return or require a Borrower to repurchase
such Inventory. Borrowers shall use, store and maintain all Inventory with reasonable care and caution, in accordance with applicable
standards of any insurance and in conformity with all Applicable Law, and shall make current rent payments (within applicable grace periods
provided for in leases) at all locations where any Collateral is located.


 


8.4              
Equipment.


 


8.4.1         
Records and Schedules of Equipment. Each Borrower shall keep accurate and complete records of its Equipment, including
kind, quality, quantity, cost, acquisitions (including copies of purchase orders, invoices, and shipping and delivery documents) and dispositions
thereof, and shall submit to Agent, on such periodic basis as Agent may request, a current schedule thereof, in form satisfactory to Agent.
Promptly upon request, Borrowers shall deliver to Agent evidence of their ownership or interests in any Equipment.


 


8.4.2         
Dispositions of Equipment. No Borrower shall sell, lease or otherwise dispose of any Equipment, without the prior
written consent of Agent, other than (a) a Permitted Asset Disposition; and (b) replacement of Equipment that is worn, damaged or obsolete
with Equipment of like function and value, if the replacement Equipment is acquired substantially contemporaneously with such disposition
and is free of Liens.


 


8.4.3         
Condition of Equipment. The Equipment is in good operating condition and repair, and all necessary replacements and
repairs have been made so that the value and operating efficiency of the Equipment is preserved at all times, reasonable wear and tear
excepted. Each Borrower shall ensure that the Equipment is mechanically and structurally sound, and capable of performing the functions
for which it was designed, in accordance with manufacturer specifications. No Borrower shall permit any Equipment to become affixed to
real Property unless any landlord or mortgagee delivers a Lien Waiver.


 


8.5              
Deposit Accounts. Schedule 8.5 of the Disclosure Certificate shows all Deposit Accounts
maintained by Obligors, including Dominion Accounts. Each Obligor shall take all actions necessary to establish Agent’s first priority
Lien on each Deposit Account (except accounts exclusively used for payroll, payroll taxes or employee benefits, other disbursement accounts
acceptable to Agent, an account containing not more than $10,000 at any time or the Chinatrust account, which is governed by the following
sentence). From and after any time that the Chinatrust Account has an account balance of $30,000 or more (including on an intra-day basis),
each Obligor shall deliver to Agent a Deposit Account Control Agreement with respect to such Chinatrust Account within thirty (30) days
thereof, in form and substance satisfactory to Agent and duly executed by the parties thereto. Obligors
shall be the sole account holders of each Deposit Account and shall not allow any Person (other than Agent and the depository bank) to
have control over their Deposit Accounts or any Property deposited therein. Obligors shall promptly notify Agent of any opening or closing
of a Deposit Account and, with the consent of Agent, will amend Schedule 8.5 of the Disclosure Certificate to reflect same. Obligors
shall promptly provide any information with respect to any Equity Proceeds Holding Account to the extent requested by Agent, including
information and supporting documentation with respect to (i) account statements of any Equity Proceeds Holding Account, (ii) the amount
of Net Proceeds deposited into any Equity Proceeds Holding Account for the purpose of making Investments pursuant to clause (g)
of the definition of “Restricted Investment” and (iii) the amount of Investments actually made pursuant to clause
(g) of the definition of “Restricted Investment” using the Net Proceeds deposited into any Equity Proceeds Holding
Account.


 


8.6              
General Provisions.


 


8.6.1         
Location of Collateral. All tangible items of Collateral, other than Inventory in transit, shall at all times be
kept by Obligors at the business locations set forth in Schedule 8.6.1 of the Disclosure Certificate, except that Obligors may
(a) make sales or other dispositions of Collateral in accordance with Section 10.2.6; and (b) move Collateral to another location
in the United States, upon 30 Business Days prior written notice to Agent.


 


 


 






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8.6.2         
Insurance of Collateral; Condemnation Proceeds.


 


(a)               
Each Obligor shall maintain (i) insurance with respect to the Collateral, covering casualty, hazard, theft, malicious mischief,
flood and other risks, in amounts, with endorsements and with insurers (with a Best rating of at least A+, unless otherwise approved by
Agent in its discretion) satisfactory to Agent, and (ii) ensure that all Real Estate is insured pursuant to policies which are valid and
in full force and effect and which provide adequate coverage from reputable and financially sound insurers in amounts sufficient to insure
the assets and risks of each applicable Obligor so as to cause each Lender to be in compliance with Flood Laws. All proceeds under each
policy shall be payable to Agent. From time to time upon request, Obligors shall deliver to Agent the originals or certified copies of
its insurance policies and updated flood plain searches. Unless Agent shall agree otherwise, each policy shall include satisfactory endorsements
(i) showing Agent as lender’s loss payee; (ii) requiring 30 days prior written notice to Agent in the event of cancellation of the
policy for any reason whatsoever; and (iii) specifying that the interest of Agent shall not be impaired or invalidated by any act or neglect
of any Obligor or the owner of the Property, nor by the occupation of the premises for purposes more hazardous than are permitted by the
policy. If any Obligor fails to provide and pay for any insurance, Agent may, at its option, but shall not be required to, procure the
insurance and charge Obligors therefor. Each Obligor agrees to deliver to Agent, promptly as rendered, copies of all reports made to insurance
companies. While no Event of Default exists, Obligors may settle, adjust or compromise any insurance claim, as long as the proceeds are
delivered to Agent. If an Event of Default exists, only Agent shall be authorized to settle, adjust and compromise such claims.


 


(b)               
Any proceeds of insurance (other than proceeds from workers' compensation insurance or D&O insurance) and any awards
arising from condemnation of any Collateral shall be paid to Agent. Any such proceeds or awards that relate to Collateral shall, subject
to clause (c) below, be applied to payment of the Revolver Loans, and then to other Obligations.


 


(c)               
If requested by Borrowers in writing within 15 days after Agent’s receipt of any insurance proceeds or condemnation
awards relating to any loss or destruction of Equipment or Real Estate, Borrowers may use such proceeds or awards to repair or replace
such Equipment or Real Estate (and until so used, the proceeds shall be held by Agent as Cash Collateral) as long as (i) no Default or
Event of Default exists; (ii) such repair or replacement is promptly undertaken and concluded, in accordance with plans satisfactory to
Agent; (iii) replacement buildings are constructed on the sites of the original casualties and are of comparable size, quality and utility
to the destroyed buildings; (iv) the repaired or replaced Property is free of Liens, other than Permitted Liens that are not Purchase
Money Liens; (v) Borrowers comply with disbursement procedures for such repair or replacement as Agent may reasonably require; and (vi)
the aggregate amount of such proceeds or awards from any single casualty or condemnation does not exceed $250,000, unless otherwise mutually
agreed to in writing by Agent and Obligors.


 


8.6.3         
Protection of Collateral. All expenses of protecting, storing, warehousing, insuring, handling, maintaining and shipping
any Collateral, all Taxes payable with respect to any Collateral (including any sale thereof), and all other payments required to be made
by Agent to any Person to realize upon any Collateral, shall be borne and paid by Borrowers. Agent shall not be liable or responsible
in any way for the safekeeping of any Collateral, for any loss or damage thereto (except for reasonable care in its custody while Collateral
is in Agent’s actual possession), for any diminution in the value thereof, or for any act or default of any warehouseman, carrier,
forwarding agency or other Person whatsoever, but the same shall be at Obligors’ sole risk.


 


8.6.4         
Defense of Title. Each Obligor shall defend its title to Collateral and Agent’s Liens therein against all Persons,
claims and demands, except Permitted Liens.


 


8.7              
Power of Attorney. Each Obligor hereby irrevocably constitutes and appoints Agent (and all Persons
designated by Agent) as such Obligor’s true and lawful attorney (and agent-in-fact) for the purposes provided in this Section.
Agent, or Agent’s designee, may, without notice and in either its or an Obligor’s name, but at the cost and expense of Borrowers:


 


(a)               
Endorse an Obligor’s name on any Payment Item or other proceeds of Collateral (including proceeds of insurance) that
come into Agent’s possession or control; and


 


 


 






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(b)               
During an Event of Default, (i) notify any Account Debtors of the assignment of their Accounts, demand and enforce payment
of Accounts by legal proceedings or otherwise, and generally exercise any rights and remedies with respect to Accounts; (ii) settle, adjust,
modify, compromise, discharge or release any Accounts or other Collateral, or any legal proceedings brought to collect Accounts or Collateral;
(iii) sell or assign any Accounts and other Collateral upon such terms, for such amounts and at such times as Agent deems advisable; (iv)
collect, liquidate and receive balances in Deposit Accounts or investment accounts, and take control, in any manner, of proceeds of Collateral;
(v) prepare, file and sign an Obligor’s name to a proof of claim or other document in a bankruptcy of an Account Debtor, or to any
notice, assignment or satisfaction of Lien or similar document; (vi) receive, open and dispose of mail addressed to an Obligor, and notify
postal authorities to deliver any such mail to an address designated by Agent; (vii) endorse any Chattel Paper, Document, Instrument,
bill of lading, or other document or agreement relating to any Accounts, Inventory or other Collateral; (viii) use an Obligor’s
stationery and sign its name to verifications of Accounts and notices to Account Debtors; (ix) use information contained in any data processing,
electronic or information systems relating to Collateral; (x) make and adjust claims under insurance policies; (xi) take any action as
may be necessary or appropriate to obtain payment under any letter of credit, banker’s acceptance or other instrument for which
an Obligor is a beneficiary; and (xii) take all other actions as Agent deems appropriate to fulfill any Obligor’s obligations under
the Loan Documents.


 


SECTION
9.          REPRESENTATIONS
AND WARRANTIES


 


9.1              
General Representations and Warranties. To induce Agent and Lenders to enter into this Agreement and
to make available the Commitments, Loans and Letters of Credit, each Obligor represents and warrants that:


 


9.1.1         
Organization and Qualification. Each Obligor and Subsidiary is duly organized, validly existing and in good standing
under the laws of the jurisdiction of its organization. Each Obligor and Subsidiary is duly qualified, authorized to do business and in
good standing as a foreign corporation in each jurisdiction where failure to be so qualified could reasonably be expected to have a Material
Adverse Effect. No Obligor is an EEA Financial Institution.


 


9.1.2         
Power and Authority. Each Obligor is duly authorized to execute, deliver and perform its Loan Documents. The execution,
delivery and performance of the Loan Documents have been duly authorized by all necessary action, and do not (a) require any consent or
approval of any holders of Equity Interests of any Obligor, except those already obtained; (b) contravene the Organic Documents of any
Obligor; (c) violate or cause a default under any Applicable Law or Material Contract; or (d) result in or require imposition of a Lien
on any Obligor’s Property.


 


9.1.3         
Enforceability. Each Loan Document is a legal, valid and binding obligation of each Obligor party thereto, enforceable
in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement
of creditors’ rights generally.


 


9.1.4         
Capital Structure. Schedule 9.1.4 of the Disclosure Certificate shows, for each Obligor and Subsidiary, its
name, jurisdiction of organization, authorized and issued Equity Interests, holders of its Equity Interests, and agreements binding on
such holders with respect to such Equity Interests. Except as disclosed on Schedule 9.1.4 of the Disclosure Certificate, in the
five years preceding the Closing Date, no Obligor or Subsidiary has acquired any substantial assets from any other Person nor been the
surviving entity in a merger or combination. Each Obligor has good title to its Equity Interests in its Subsidiaries, subject only to
Agent’s Lien, and all such Equity Interests are duly issued, fully paid and non-assessable. There are no outstanding purchase options,
warrants, subscription rights, agreements to issue or sell, convertible interests, phantom rights or powers of attorney relating to Equity
Interests of any Obligor or Subsidiary.


 


9.1.5         
Title to Properties; Priority of Liens.


 


(a)               
Each Obligor and Subsidiary has good and marketable title to (or valid leasehold interests in) all of its Real Estate, and
good title to all of its personal Property, including all Property reflected in any financial statements delivered to Agent or Lenders,
in each case free of Liens except Permitted Liens. Each Obligor and Subsidiary has paid and discharged all lawful claims that, if unpaid,
could become a Lien on its Properties, other than Permitted Liens. All Liens of Agent in the Collateral are duly perfected, first priority
Liens, subject only to Permitted Liens that are expressly allowed to have priority over Agent’s Liens. The Obligors have received
all deeds, assignments, waivers, consents, non-disturbance and recognition or similar agreements, bills of sale and other documents in
respect of, and have duly effected all recordings, filings and other actions necessary to establish, protect and perfect, the Obligors’
right, title and interest in and to all such property that is included in the Borrowing Base.


 


 


 






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(b)               
Set forth on Schedule 9.1.5 of the Disclosure Certificate is a complete and accurate list of all real or immovable
property owned, leased, licensed or otherwise used in the operations of the business of each Obligor and showing the current street address
(including, where applicable, county, state and other relevant jurisdictions), record owner (if owned) or leasehold interest holder and,
(if leased) lessee or other user thereof. Each of such leases and subleases is valid and enforceable in accordance with its terms (except
as such enforceability may be subject to or limited by bankruptcy, insolvency, reorganization or other similar laws) and is in full force
and effect, and to each Obligor's knowledge, no default by any party to any material lease or material sublease exists.


 


9.1.6         
Accounts. Agent may rely, in determining which Accounts are Eligible Accounts, on all statements and representations
made by Borrowers with respect thereto. Borrowers warrant, with respect to each Account shown as an Eligible Account in a Borrowing Base
Report, that:


 


(a)               
it is genuine and in all respects what it purports to be;


 


(b)               
it arises out of a completed, bona fide sale and delivery of goods in the Ordinary Course of Business, and substantially
in accordance with any purchase order, contract or other document relating thereto;


 


(c)               
it is for a sum certain, maturing as stated in the applicable invoice, a copy of which has been furnished or is available
to Agent on request;


 


(d)               
it is not subject to any offset, Lien (other than Agent’s Lien), deduction, defense, dispute, counterclaim or other
adverse condition except as arising in the Ordinary Course of Business and disclosed to Agent; and it is absolutely owing by the Account
Debtor, without contingency of any kind;


 


(e)               
no purchase order, agreement, document or Applicable Law restricts assignment of the Account to Agent (regardless of whether,
under the UCC, the restriction is ineffective), and the applicable Borrower is the sole payee or remittance party shown on the invoice;


 


(f)                
no extension, compromise, settlement, modification, credit, deduction or return has been authorized or is in process with
respect to the Account, except discounts or allowances granted in the Ordinary Course of Business for prompt payment that are reflected
on the face of the invoice related thereto and in the reports submitted to Agent hereunder; and


 


(g)               
to Borrowers’ knowledge, (i) there are no facts or circumstances that are reasonably likely to impair the enforceability
or collectability of such Account; (ii) the Account Debtor had the capacity to contract when the Account arose, continues to meet the
applicable Borrower’s customary credit standards, is Solvent, is not contemplating or subject to an Insolvency Proceeding, and has
not failed, or suspended or ceased doing business; and (iii) there are no proceedings or actions threatened or pending against any Account
Debtor that could reasonably be expected to have a material adverse effect on the Account Debtor’s financial condition.


 


9.1.7         
Financial Statements. The consolidated and consolidating balance sheets, and related statements of income, cash flow
and shareholders equity, of Borrowers and Subsidiaries that have been and are hereafter delivered to Agent and Lenders, are prepared in
accordance with GAAP, and fairly present the financial positions and results of operations of Borrowers and Subsidiaries on a consolidated
and consolidating basis, as applicable, at the dates and for the periods indicated. All projections delivered from time to time to Agent
and Lenders have been prepared in good faith, based on reasonable assumptions in light of the circumstances at such time. Since December
31, 2021, there has been no change in the condition, financial or otherwise, of any Borrower or Subsidiary that could reasonably be expected
to have a Material Adverse Effect. No financial statement delivered to Agent or Lenders at any time contains any untrue statement of a
material fact, nor fails to disclose any material fact necessary to make such statement not materially misleading. Each Borrower and Subsidiary
is Solvent.


 


9.1.8         
Surety Obligations. No Borrower or Subsidiary is obligated as surety or indemnitor under any bond or other contract
that assures payment or performance of any obligation of any Person, except as permitted hereunder.


 


 


 






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9.1.9         
Taxes. Each Borrower and Subsidiary has filed all federal, state, foreign and local tax returns and other reports
that it is required by law to file, and has paid, or made provision for the payment of, all Taxes upon it, its income and its Properties
that are due and payable, except to the extent being Properly Contested. The provision for Taxes on the books of each Borrower and Subsidiary
is adequate for all years not closed by applicable statutes, and for its current Fiscal Year.


 


9.1.10      
Brokers. There are no brokerage commissions, finder’s fees or investment banking fees payable in connection
with any transactions contemplated by the Loan Documents.


 


9.1.11      
Intellectual Property. Subject to the rights of Yuhan under the Transceiver SPA with respect to the Intellectual
Property to be sold thereunder, each Obligor and Subsidiary owns or has the lawful right to use all Intellectual Property necessary for
the conduct of its business, without conflict with any rights of others. There is no pending or, to any Obligor’s knowledge, threatened
Intellectual Property Claim with respect to any Obligor, any Subsidiary or any of their Property (including any Intellectual Property).
Except as disclosed on Schedule 9.1.11 of the Disclosure Certificate, no Obligor or Subsidiary pays or owes any royalty or other
compensation to any Person with respect to any Intellectual Property. All Intellectual Property owned, used or licensed by, or otherwise
subject to any interests of, any Obligor or Subsidiary thereof (to the extent such Subsidiary is an Obligor) is shown on Schedule 9.1.11
of the Disclosure Certificate.


 


9.1.12      
Governmental Approvals. Each Obligor and Subsidiary has, is in compliance with, and is in good standing with respect
to, all Governmental Approvals necessary to conduct its business and to own, lease and operate its Properties. All necessary import, export
or other licenses, permits or certificates for the import or handling of any goods or other Collateral have been procured and are in effect,
and Obligors and Subsidiaries have complied with all foreign and domestic laws with respect to the shipment and importation of any goods
or Collateral, except where noncompliance could not reasonably be expected to have a Material Adverse Effect.


 


9.1.13      
Compliance with Laws. Each Obligor and Subsidiary has duly complied, and its Properties and business operations are
in compliance, in all material respects with all Applicable Law, except where noncompliance could not reasonably be expected to have a
Material Adverse Effect. There have been no citations, notices or orders of material noncompliance issued to any Obligor or Subsidiary
under any Applicable Law. No Inventory has been produced in violation of the FLSA.


 


9.1.14      
Compliance with Environmental Laws. Except as disclosed on Schedule 9.1.14 of the Disclosure Certificate,
no Obligor’s or Subsidiary’s past or present operations, Real Estate or other Properties are subject to any federal, state
or local investigation to determine whether any remedial action is needed to address any environmental pollution, hazardous material or
environmental clean-up. No Obligor or Subsidiary has received any Environmental Notice. No Obligor or Subsidiary has any contingent liability
with respect to any Environmental Release, environmental pollution or hazardous material on any Real Estate now or previously owned, leased
or operated by it.


 


9.1.15      
Burdensome Contracts. No Obligor or Subsidiary is a party or subject to any contract, agreement or charter restriction
that could reasonably be expected to have a Material Adverse Effect. No Obligor or Subsidiary is party or subject to any Restrictive Agreement,
except as shown on Schedule 9.1.15 of the Disclosure Certificate. No such Restrictive Agreement prohibits the execution, delivery
or performance of any Loan Document by an Obligor.


 


9.1.16      
Litigation. Except as shown on Schedule 9.1.16 of the Disclosure Certificate, there are no proceedings or
investigations pending or, to any Obligor’s knowledge, threatened against any Obligor or Subsidiary, or any of their businesses,
operations or Properties, that (a) relate to any Loan Documents or transactions contemplated thereby, or (b) could reasonably be expected
to have a Material Adverse Effect if determined adversely to any Obligor or Subsidiary. Except as shown on such Schedule, no Obligor has
a Commercial Tort Claim (other than, as long as no Default or Event of Default exists, a Commercial Tort Claim for less than $100,000).
No Obligor or Subsidiary is in default with respect to any order, injunction or judgment of any Governmental Authority.


 


 


 






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9.1.17      
No Defaults. No event or circumstance has occurred or exists that constitutes a Default or Event of Default. No Obligor
or Subsidiary is in default, and no event or circumstance has occurred or exists that with the passage of time or giving of notice would
constitute a default, under any Material Contract or in the payment of any Borrowed Money. There is no basis upon which any party (other
than an Obligor or Subsidiary) could terminate a Material Contract prior to its scheduled termination date.


 


9.1.18      
ERISA. Except as disclosed on Schedule 9.1.18 of the Disclosure Certificate:


 


(a)               
Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code, and other federal
and state laws. Each Plan that is intended to qualify under Section 401(a) of the Code has received a favorable determination letter from
the IRS or an application for such a letter is currently being processed by the IRS with respect thereto and, to the knowledge of Obligors,
nothing has occurred which would prevent, or cause the loss of, such qualification. Each Obligor and ERISA Affiliate has met all applicable
requirements under the Code, ERISA and the Pension Protection Act of 2006, and no application for a waiver of the minimum funding standards
or an extension of any amortization period has been made with respect to any Plan.


 


(b)               
There are no pending or, to the knowledge of Obligors, threatened claims, actions or lawsuits, or action by any Governmental
Authority, with respect to any Plan that could reasonably be expected to have a Material Adverse Effect. There has been no prohibited
transaction or violation of the fiduciary responsibility rules with respect to any Plan that has resulted in or could reasonably be expected
to have a Material Adverse Effect.


 


(c)               
(i) No ERISA Event has occurred or is reasonably expected to occur; (ii) as of the most recent valuation date for any Pension
Plan, the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is at least 60%; and no Obligor or ERISA
Affiliate knows of any reason that such percentage could reasonably be expected to drop below 60%; (iii) no Obligor or ERISA Affiliate
has incurred any liability to the PBGC except for the payment of premiums, and no premium payments are due and unpaid; (iv) no Obligor
or ERISA Affiliate has engaged in a transaction that could be subject to Section 4069 or 4212(c) of ERISA; and (v) no Pension Plan has
been terminated by its plan administrator or the PBGC, and no fact or circumstance exists that could reasonably be expected to cause the
PBGC to institute proceedings to terminate a Pension Plan.


 


(d)               
With respect to any Foreign Plan, (i) all employer and employee contributions required by law or by the terms of the Foreign
Plan have been made, or, if applicable, accrued, in accordance with normal accounting practices; (ii) the fair market value of the assets
of each funded Foreign Plan, the liability of each insurer for any Foreign Plan funded through insurance, or the book reserve established
for any Foreign Plan, together with any accrued contributions, is sufficient to procure or provide for the accrued benefit obligations
with respect to all current and former participants in such Foreign Plan according to the actuarial assumptions and valuations most recently
used to account for such obligations in accordance with applicable generally accepted accounting principles; and (iii) it has been registered
as required and has been maintained in good standing with applicable regulatory authorities.


 


9.1.19      
Trade Relations. There exists no actual or threatened termination, limitation or modification of any business relationship
between any Borrower or Subsidiary and any customer or supplier, or any group of customers or suppliers, who individually or in the aggregate
are material to the business of such Borrower or Subsidiary. There exists no condition or circumstance that could reasonably be expected
to impair the ability of any Borrower or Subsidiary to conduct its business at any time hereafter in substantially the same manner as
conducted on the Closing Date.


 


9.1.20      
Labor Relations. Except as described on Schedule 9.1.20 of the Disclosure Certificate, no Borrower or Subsidiary
is party to or bound by any collective bargaining agreement, management agreement or consulting agreement. There are no material grievances,
disputes or controversies with any union or other organization of any Borrower’s or Subsidiary’s employees, or, to any Borrower’s
knowledge, any asserted or threatened strikes, work stoppages or demands for collective bargaining.


 


9.1.21      
Payable Practices. No Borrower or Subsidiary has made any material change in its historical accounts payable practices
from those in effect on the Closing Date.


 


 


 






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9.1.22      
Not a Regulated Entity. No Obligor is (a) an “investment company” or a “person directly or indirectly
controlled by or acting on behalf of an investment company” within the meaning of the Investment Company Act of 1940; or (b) subject
to regulation under the Federal Power Act, the Interstate Commerce Act, any public utilities code or any other Applicable Law regarding
its authority to incur Debt.


 


9.1.23      
Margin Stock. No Borrower or Subsidiary is engaged, principally or as one of its important activities, in the business
of extending credit for the purpose of purchasing or carrying any Margin Stock. No Loan proceeds or Letters of Credit will be used by
Borrowers to purchase or carry, or to reduce or refinance any Debt incurred to purchase or carry, any Margin Stock or for any related
purpose governed by Regulations T, U or X of the Board of Governors.


 


9.1.24      
OFAC. No Obligor, Subsidiary, or any director, officer, employee, agent, affiliate or representative thereof, is
or is owned or controlled by any individual or entity that is currently the subject or target of any Sanction or is located, organized
or resident in a Designated Jurisdiction.


 


9.1.25      
Anti-Corruption Laws. Each Borrower and Subsidiary has conducted its business in accordance with applicable anti-corruption
laws and has instituted and maintained policies and procedures designed to promote and achieve compliance with such laws.


 


9.1.26      
Subordinated Debt; Convertible Notes. Agent has received true and complete copies of the Convertible Notes Documents
and of any documentation governing any Subordinated Debt incurred at any time by any Obligor (in each case, including all addendums, exhibits,
schedules and disclosure letters referred to therein or delivered pursuant thereto, if any) and all amendments thereto, waivers relating
thereto and other side letters or agreements affecting the terms thereof. None of such documents and agreements has been amended or supplemented
in any manner adverse to Agent or the Lenders, nor have any of the provisions thereof been waived, except pursuant to a written agreement
or instrument which has heretofore been delivered to Agent.


 


9.2              
Complete Disclosure. No Loan Document contains any untrue statement of a material fact, nor fails to
disclose any material fact necessary to make the statements contained therein not materially misleading. There is no fact or circumstance
that any Obligor has failed to disclose to Agent in writing that could reasonably be expected to have a Material Adverse Effect.


 


SECTION
10.      COVENANTS
AND CONTINUING AGREEMENTS


 


10.1           
Affirmative Covenants. As long as any Commitments or Obligations are outstanding, each Obligor shall,
and shall cause each Subsidiary to:


 


10.1.1      
Inspections; Appraisals.


 


(a)               
Permit Agent from time to time, subject (unless a Default or Event of Default exists) to reasonable notice and normal business
hours, to visit and inspect the Properties of any Obligor or Subsidiary, inspect, audit and make extracts from any Obligor’s or
Subsidiary’s books and records, and discuss with its officers, employees, agents, advisors and independent accountants such Obligor’s
or Subsidiary’s business, financial condition, assets, prospects and results of operations. Lenders may participate in any such
visit or inspection, at their own expense. Secured Parties shall have no duty to any Obligor to make any inspection, nor to share any
results of any inspection, appraisal or report with any Obligor. Obligors acknowledge that all inspections, appraisals and reports are
prepared by Agent and Lenders for their purposes, and Obligors shall not be entitled to rely upon them.


 


(b)               
Reimburse Agent for all its reasonable charges, costs and expenses in connection with (i) examinations of Obligors'
books and records or any other financial or Collateral matters as it deems appropriate, up to two (2) times per Loan Year and (ii) Eligible
Inventory Appraisals as it deems appropriate, up to two (2) times per Loan Year; provided, however, that if an examination
or appraisal is initiated during a Default or Event of Default, all charges, costs and expenses relating thereto shall be reimbursed by
Borrowers without regard to such limits. Borrowers shall pay Agent's then standard charges for examination activities, including charges
for its internal examination and appraisal groups, as well as the charges of any third party used for such purposes.


 


 


 






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10.1.2      
Financial and Other Information. Keep adequate records and books of account with respect to its business activities,
in which proper entries are made in accordance with GAAP reflecting all financial transactions; and furnish to Agent and Lenders:


 


(a)               
as soon as available, and in any event within 90 days after the close of each Fiscal Year, balance sheets as of the end
of such Fiscal Year and the related statements of income, cash flow and shareholders equity for such Fiscal Year, on consolidated and
consolidating bases for Borrowers and Subsidiaries, which consolidated statements shall be audited and certified (without qualification)
by a firm of independent certified public accountants of recognized standing selected by Borrowers and acceptable to Agent, and shall
set forth in comparative form corresponding figures for the preceding Fiscal Year and other information acceptable to Agent;


 


(b)               
as soon as available, and in any event within 30 days after the end of each month (but within 60 days after the last month
in a Fiscal Year), unaudited balance sheets as of the end of such month and the related statements of income and cash flow for such month
and for the portion of the Fiscal Year then elapsed, on consolidated and consolidating bases for Borrowers and Subsidiaries, setting forth
in comparative form corresponding figures for the preceding Fiscal Year and certified by the chief financial officer of Borrower Agent
as prepared in accordance with GAAP and fairly presenting the financial position and results of operations for such month and period,
subject to normal year-end adjustments and the absence of footnotes;


 


(c)               
concurrently with delivery of financial statements under clauses (a) and (b) above, or more frequently if
requested by Agent while a Default or Event of Default exists, a Compliance Certificate executed by the chief financial officer of Borrower
Agent;


 


(d)               
concurrently with delivery of financial statements under clause (a) above, copies of all management letters and other
material reports submitted to Borrowers by their accountants in connection with such financial statements;


 


(e)               
not later than 30 days prior to the end of each Fiscal Year, projections (in Microsoft Excel) of Borrowers’ consolidated
balance sheets, results of operations, cash flow, Availability and Borrowing Base for the next Fiscal Year, month by month, and for the
next three Fiscal Years, year by year; provided, that to the extent previously delivered on the Closing Date, Borrowers shall not
be obligated to deliver projections pursuant to this Section 10.1.2(e) that would otherwise be due 30 days prior to the end of
the Fiscal Year ending December 31, 2022;


 


(f)                
at Agent’s request, a listing of each Borrower’s trade payables, specifying the trade creditor and balance due,
and a detailed trade payable aging, all in form satisfactory to Agent;


 


(g)               
promptly after the sending or filing thereof, copies of any proxy statements, financial statements or reports that any Borrower
has made generally available to its shareholders; copies of any regular, periodic and special reports or registration statements or prospectuses
that any Borrower files with the Securities and Exchange Commission or any other Governmental Authority, or any securities exchange; and
copies of any press releases or other statements made available by a Borrower to the public concerning material changes to or developments
in the business of such Borrower;


 


(h)               
promptly after the sending or filing thereof, copies of any annual report to be filed in connection with each Plan or Foreign
Plan; and


 


(i)                 
such other reports and information (financial or otherwise) as Agent may request from time to time in connection with any
Collateral or any Borrower’s, Subsidiary’s or other Obligor’s financial condition or business.


 


 


 






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10.1.3      
Notices. Notify Agent and Lenders in writing, promptly (but in any event within three (3) Business Days) after a
Borrower’s obtaining knowledge thereof, of any of the following that affects an Obligor: (a) the threat or commencement of any proceeding
or investigation, whether or not covered by insurance, if an adverse determination could have a Material Adverse Effect; (b) any pending
or threatened labor dispute, strike or walkout, or the expiration of any material labor contract; (c) any default under or termination
of a Material Contract; (d) the existence of any Default or Event of Default or “Default” or “Event of Default”
(in each case as defined in the Convertible Notes Documents) (or any default or event of default under the documentation governing any
Subordinated Debt) and copies of notices of (x) the occurrence of any event that would result in the repurchase or redemption of any of
the Convertible Notes, (y) the exercise of any rights or remedies with respect to any of the Convertible Notes and (z) on or before the
twentieth (20th) day of each Fiscal Quarter, notice of the conversion of any of the Convertible Notes during the immediately
preceding Fiscal Quarter, in each case sent to or received from the Convertible Notes Trustee or holders of any of the Convertible Notes;
(e) any judgment in an amount exceeding $250,000; (f) the assertion of any Intellectual Property Claim, if an adverse resolution could
have a Material Adverse Effect; (g) any violation or asserted violation of any Applicable Law (including ERISA, OSHA, FLSA, or any Environmental
Laws), if an adverse resolution could have a Material Adverse Effect; (h) any Environmental Release by an Obligor or on any Property owned,
leased or occupied by an Obligor; or receipt of any Environmental Notice; (i) the occurrence of any ERISA Event; (j) the discharge of
or any withdrawal or resignation by Borrowers’ independent accountants; (k) any opening of a new office or place of business, at
least 30 Business Days prior to such opening; (l) any and all default notices sent or received under or with respect to (i) any leased
location or (ii) public warehouse where Collateral is located (which shall be delivered within two Business Days after receipt thereof).


 


10.1.4      
Landlord and Storage Agreements. Upon request, provide Agent with copies of all existing agreements, and promptly
after execution thereof provide Agent with copies of all future agreements, between an Obligor and any landlord, warehouseman, processor,
shipper, bailee or other Person that owns any premises at which any Collateral may be kept or that otherwise may possess or handle any
Collateral.


 


10.1.5      
Compliance with Laws. Comply with all Applicable Laws, including ERISA, Environmental Laws, FLSA, OSHA, Anti-Terrorism
Laws, and laws regarding collection and payment of Taxes, and maintain all Governmental Approvals necessary to the ownership of its Properties
or conduct of its business, unless failure to comply (other than failure to comply with Anti-Terrorism Laws) or maintain could not reasonably
be expected to have a Material Adverse Effect. Without limiting the generality of the foregoing, if any Environmental Release in violation
of Environmental Laws occurs at or on any Properties of any Borrower or Subsidiary, it shall act promptly and diligently to investigate
and report to Agent and all appropriate Governmental Authorities the extent of, and to make appropriate remedial action to eliminate,
such Environmental Release, whether or not directed to do so by any Governmental Authority.


 


10.1.6      
Taxes. Pay and discharge all Taxes prior to the date on which they become delinquent or penalties attach, unless
such Taxes are being Properly Contested.


 


10.1.7      
Insurance. In addition to the insurance required hereunder with respect to Collateral, maintain insurance with insurers
(with a Best rating of at least A+, unless otherwise approved by Agent in its discretion) satisfactory to Agent, (a) with respect to the
Properties and business of Borrowers and Subsidiaries of such type (including product liability, workers’ compensation, larceny,
embezzlement, or other criminal misappropriation insurance), in such amounts, and with such coverages and deductibles as are customary
for companies similarly situated; and (b) business interruption insurance in such amount as is customary for companies similarly situated
and satisfactory to Agent in its Permitted Discretion, with deductibles and subject to an endorsement or assignment satisfactory to Agent.


 


10.1.8      
Licenses. Keep each License affecting any Collateral (including the manufacture, distribution or disposition of Inventory)
or any other material Property of Borrowers and Subsidiaries in full force and effect; promptly notify Agent of any proposed modification
to any such License, or entry into any new License, in each case at least 30 days prior to its effective date; pay all royalties and other
amounts when due under any License; and notify Agent of any default or breach asserted by any Person to have occurred under any License.


 


 


 






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10.1.9      
Future Subsidiaries. Promptly notify Agent upon any Person becoming a Subsidiary and, if such Person is a Domestic
Subsidiary, cause it to guaranty the Obligations in a manner satisfactory to Agent or otherwise become a Borrower hereunder, and to execute
and deliver such documents, instruments and agreements and to take such other actions as Agent shall require to evidence and perfect a
Lien in favor of Agent on all assets of such Person, including delivery of such legal opinions, in form and substance satisfactory to
Agent, as it shall deem appropriate.


 


10.1.10  
[Reserved].


 


10.1.11  
Anti-Corruption Laws. Conduct its business in compliance with applicable anti-corruption laws and maintain
policies and procedures designed to promote and achieve compliance with such laws.


 


10.1.12  
Compliance with Flood Laws. Take all actions required under Flood Laws and/or requested by Agent to assist in ensuring
that each Lender is in compliance with Flood Laws, including, but not limited to, providing Agent with the address and/or GPS coordinates
of each structure located upon any Real Estate and, to the extent required, obtaining flood insurance as more particularly set forth in
Section 8.6.2 for such property, structures and/or contents prior to such property, structures and/or contents becoming Collateral.


 


10.1.13  
Post-Closing Matters. Complete each of the matters described on Schedule 10.1.13
of the Disclosure Certificate within the time period specified for such item on Schedule 10.1.13
of the Disclosure Certificate (or such later time period as Agent may agree in writing in its sole discretion).


 


10.2           
Negative Covenants. As long as any Commitments or Obligations are outstanding, each Obligor shall
not, and shall cause each Subsidiary not to:


 


10.2.1      
Permitted Debt. Create, incur, guarantee or suffer to exist any Debt, except:


 


(a)               
the Obligations;


 


(b)               
Subordinated Debt;


 


(c)               
the Convertible Notes (but only to the extent issued and outstanding as of the Closing Date);


 


(d)               
Permitted Purchase Money Debt;


 


(e)               
Borrowed Money (other than the Obligations, Subordinated Debt, the Convertible Notes and Permitted Purchase Money Debt),
but only to the extent outstanding on the Closing Date and not satisfied with proceeds of the initial Loans;


 


(f)                
Debt with respect to Bank Products incurred in the Ordinary Course of Business, as long as the aggregate mark-to-market
obligations under Hedging Agreements do not exceed $250,000 at any time;


 


(g)               
Permitted Contingent Obligations;


 


(h)               
Refinancing Debt as long as each Refinancing Condition is satisfied;


 


(i)                 
Debt that is not included in any of the preceding clauses of this Section, is not secured by a Lien and does not exceed
$500,000 in the aggregate at any time;


 


 


 






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(j)                 
Debt of any Foreign Subsidiaries that are not Obligors in an aggregate amount not to exceed $20,000,000 at any time outstanding
(which Debt shall be in addition to, and exclusive of, Debt permitted under Section 10.2.1(k)); and


 


(k)               
existing Debt as of the Closing Date as shown on Schedule 10.2.1 of the Disclosure Certificate.


 


10.2.2      
Permitted Liens. Create or suffer to exist any Lien upon any of its Property, except the following (collectively,
“Permitted Liens”):


 


(a)               
Liens in favor of Agent;


 


(b)               
Purchase Money Liens securing Permitted Purchase Money Debt;


 


(c)               
Liens for Taxes not yet due or being Properly Contested;


 


(d)               
statutory Liens (other than Liens for Taxes or imposed under ERISA) arising in the Ordinary Course of Business, but only
if (i) payment of the obligations secured thereby is not yet due or is being Properly Contested, and (ii) such Liens do not materially
impair the value or use of the Property or materially impair operation of the business of any Borrower or Subsidiary;


 


(e)               
Liens incurred or deposits made in the Ordinary Course of Business to secure the performance of government tenders, bids,
contracts, statutory obligations and other similar obligations, as long as such Liens are at all times junior to Agent’s Liens and
are required or provided by law;


 


(f)                
Liens arising in the Ordinary Course of Business that are subject to Lien Waivers;


 


(g)               
Liens arising by virtue of a judgment or judicial order against any Borrower or Subsidiary, or any Property of a Borrower
or Subsidiary, as long as such Liens are (i) in existence for less than 30 consecutive days or being Properly Contested, and (ii) at all
times junior to Agent’s Liens;


 


(h)               
easements, rights-of-way, restrictions, covenants or other agreements of record, and other similar charges or encumbrances
on Real Estate, that do not secure any monetary obligation and do not interfere with the Ordinary Course of Business;


 


(i)                 
normal and customary rights of setoff upon deposits in favor of depository institutions, and Liens of a collecting bank
on Payment Items in the course of collection;


 


(j)                 
Liens on the assets of Foreign Subsidiaries that are not Obligors securing Debt permitted under Section 10.2.1(j)
in an aggregate amount not to exceed $20,000,000 at any time outstanding (which Liens shall be in addition to, and exclusive of, Liens
permitted under Section 10.2.2(k)); and


 


(k)               
existing Liens as of the Closing Date as shown on Schedule 10.2.2 of the Disclosure Certificate.


 


Notwithstanding the foregoing,
none of the Liens permitted pursuant to this Section 10.2.2 may at any time attach to any Accounts or Inventory unless such Liens
shall be junior in priority to the Liens securing the Obligations and shall be subject to an intercreditor agreement in form and substance
reasonably satisfactory to Agent.


 


10.2.3      
Capital Expenditures. Make Capital Expenditures in the aggregate during any Fiscal Year in excess of the sum of (i)
$6,000,000 and (ii) amounts representing Capital Expenditures to the extent funded exclusively with Net Proceeds of issuances of Equity
Interests of AOI (other than Equity Interests constituting Disqualified Equity Interests) within thirty (30) days of receipt of such Net
Proceeds.


 


 


 






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10.2.4      
Distributions; Upstream Payments. Declare or make any Distributions, except Upstream Payments and Permitted Distributions;
or create or suffer to exist any encumbrance or restriction on the ability of a Subsidiary to make any Upstream Payment, except for restrictions
under the Loan Documents, under Applicable Law or in effect on the Closing Date as shown on Schedule 9.1.15 of the Disclosure Certificate.


 


10.2.5      
Restricted Investments. Make any Restricted Investment.


 


10.2.6      
Disposition of Assets. Make any Asset Disposition, except a Permitted Asset Disposition, a disposition of Equipment
under Section 8.4.2, or a transfer of Property by a Subsidiary or Obligor to a Borrower.


 


10.2.7      
Loans. Make any loans or other advances of money to any Person, except (a) advances to an officer or employee for
salary, travel expenses, commissions and similar items in the Ordinary Course of Business; (b) prepaid expenses and extensions of trade
credit made in the Ordinary Course of Business; (c) deposits with financial institutions permitted hereunder; (d) as long as no Default
or Event of Default exists, intercompany loans by a Borrower to another Borrower (it being understood that, upon request of Agent, any
notes evidencing such intercompany loans in a principal amount in excess of $250,000 shall be pledged and delivered to Agent, together
with allonges thereto); and (e) solely to the extent permitted by Section 10.2.17(d), intercompany payables and/or receivables
between an Obligor and one or more Foreign Subsidiaries in the Ordinary Course of Business, but excluding the payment of management, consulting,
advisory or similar fees.


 


10.2.8      
Restrictions on Payment of Certain Debt.


 


(a)               
Make any payments in respect of principal, interest, fees, charges or other amounts (whether voluntary or mandatory, or
a prepayment, redemption, retirement, defeasance or acquisition) with respect to any (a) Subordinated Debt, except regularly scheduled
payments of interest and fees, but only to the extent permitted under any subordination agreement relating to such Debt (and a Senior
Officer of Borrower Agent shall certify to Agent, not less than five Business Days prior to the date of payment, that all conditions under
such agreement have been satisfied); or (b) Borrowed Money (other than the Obligations, but including the Convertible Notes Obligations)
prior to its due date under the agreements evidencing such Debt as in effect on the Closing Date (or as amended thereafter with the consent
of Agent), except to the extent the Net Proceeds of a Permitted Asset Disposition (or insurance or condemnation award) of Equipment or
Real Estate subject to a Purchase Money Lien are required to be applied to repay obligations with respect to any Permitted Purchase Money
Debt pursuant to the documentation governing such Permitted Purchase Money Debt.


 


(b)               
prepay (whether voluntary or mandatory), redeem, defease, retire, purchase or otherwise acquire any Borrowed Money or other
Debt of any Obligor or its Subsidiaries permitted under Section 10.2.1, except prepayments of the Obligations in accordance with
the terms of this Agreement or, subject in all respects to the Refinancing Conditions, prepayments of Debt in connection with the incurrence
or issuance of Refinancing Debt to the extent such Refinancing Debt is expressly permitted hereunder.


 


10.2.9      
Fundamental Changes. Other than as required in connection with the Reorganization (as defined in the Transceiver
SPA), change its name or conduct business under any fictitious name; change its tax, charter or other organizational identification number;
change its form or state of organization; liquidate, wind up its affairs or dissolve itself; consummate (or unwind) a Division or merge,
combine or consolidate with any Person, whether in a single transaction or in a series of related transactions, except for mergers or
consolidations of a wholly-owned Subsidiary with another wholly-owned Subsidiary or into a Borrower; or, in the case of a limited liability
company, participate in any statutory division.


 


10.2.10  
Subsidiaries. Other than as required in connection with the Reorganization (as defined in the Transceiver SPA), form
or acquire (including by virtue of any Division of any Obligor) any Subsidiary after the Closing Date, except the formation or acquisition
of wholly owned Subsidiaries in accordance with Sections 10.1.9, 10.2.5 and 10.2.9; or permit any existing Subsidiary
to issue any additional Equity Interests except directors’ qualifying shares.


 


 


 






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10.2.11  
Organic Documents. Amend, modify or otherwise change any of its Organic Documents, except in connection with a transaction
permitted under Section 10.2.9.


 


10.2.12  
Tax Consolidation. File or consent to the filing of any consolidated income tax return with any Person other than
Borrowers and Subsidiaries.


 


10.2.13  
Accounting Changes. Make any material change in accounting treatment or reporting practices, except as required by
GAAP and in accordance with Section 1.2; or change its Fiscal Year.


 


10.2.14  
Restrictive Agreements. Become a party to any Restrictive Agreement, except a Restrictive Agreement (a) in effect
on the Closing Date; (b) relating to secured Debt permitted hereunder, as long as the restrictions apply only to collateral for such Debt;
or (c) constituting customary restrictions on assignment in leases and other contracts.


 


10.2.15  
Hedging Agreements. Enter into any Hedging Agreement, except to hedge risks arising in the Ordinary Course of Business
and not for speculative purposes.


 


10.2.16  
Conduct of Business. Engage in any business, other than its business as conducted on the Closing Date and any activities
incidental thereto.


 


10.2.17  Affiliate Transactions. Enter into or be party to any transaction
with an Affiliate, except (a) transactions expressly permitted by the Loan Documents; (b) transactions solely among Borrowers (including
payment of reasonable compensation to officers and employees for services actually rendered, and payment of customary directors’
fees and indemnities); (c) transactions with Affiliates consummated prior to the Closing Date, as shown on Schedule 10.2.17 of
the Disclosure Certificate; and (d) transactions with Affiliates in the Ordinary Course of Business (including intercompany payables and/or
receivables between an Obligor and one or more Foreign Subsidiaries in the Ordinary Course of Business, but excluding the payment of management,
consulting, advisory or similar fees), upon fair and reasonable terms fully disclosed to Agent in writing and no less favorable than would
be obtained in a comparable arm’s-length transaction with a non-Affiliate; provided, that the amount of Net Intercompany
Receivables shall not exceed $20,000,000 at any time.


 


10.2.18  
Plans. Become party to any Multiemployer Plan or Foreign Plan, other than any in existence on the Closing Date.


 


10.2.19  
Amendments to Subordinated Debt, Material Contracts and Convertible Notes Documents.


 


(a)               
Amend, supplement or otherwise modify any document, instrument or agreement relating to any Subordinated Debt, (a) if such
modification (i) increases the principal balance of such Debt, or increases any required payment of principal or interest; (ii) accelerates
the date on which any installment of principal or any interest is due, or adds any additional redemption, put or prepayment provisions;
(iii) shortens the final maturity date or otherwise accelerates amortization; (iv) increases the interest rate; (v) increases or adds
any fees or charges; (vi) modifies any covenant in a manner or adds any representation, covenant or default that is more onerous or restrictive
in any material respect for any Borrower or Subsidiary, or that is otherwise materially adverse to any Borrower, any Subsidiary or Lenders;
(vii) results in the Obligations not being fully benefited by the subordination provisions thereof, or (viii) is otherwise prohibited
by the terms of the subordination agreement with respect thereto or (b) without providing a copy of any such material amendment, supplement
or other modification to Agent promptly upon its execution.


 


(b)               
Amend, supplement or otherwise modify any document, instrument or agreement relating to any Material Contract, (i) if such
modification would be adverse to the Agent or Lenders; or (ii) without providing a copy of any such amendment, supplement or other modification
to Agent promptly upon its execution; provided, that in connection with the Transceiver Sale, Subsidiaries that are not Obligors
shall be permitted to amend, supplement or modify the credit facilities set forth on Schedule 10.2.1 as of the date hereof as necessary
for the consummation of the Transceiver Sale so long as (i) any such amendment, supplement or modification is not adverse to the Agent,
Lenders or AOI, (ii) any such amendment, supplement or modification does not result in the incurrence of any liability by AOI and (iii)
a copy of any such amendment, supplement or other modification is provided to Agent promptly upon its execution.


 


 


 






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(c)               
Amend, supplement or otherwise modify any document, instrument or agreement relating to any Convertible Notes Documents,
unless (i) Agent shall have provided its prior written consent in its sole discretion; and (ii) Borrower shall provide Agent with a true,
complete and correct copy of any such amendment, supplement or other modification to Agent promptly upon its execution.


 


10.3           
Financial Covenants. As long as any Commitments or Obligations are outstanding, Borrowers shall:


 


10.3.1      
Fixed Charge Coverage Ratio. Maintain a Fixed Charge Coverage Ratio for the Fixed Charge Coverage Ratio Measurement
Period ending on the last day of each calendar month of at least 1.0 to 1.0 while a Trigger Period is in effect, measured for the most
recent such period for which financial statements were delivered hereunder prior to the Trigger Period and each such period ending thereafter
until the Trigger Period is no longer in effect.


 


SECTION
11.      EVENTS
OF DEFAULT; REMEDIES ON DEFAULT


 


11.1           
Events of Default. Each of the following shall be an “Event of Default” if it occurs
for any reason whatsoever, whether voluntary or involuntary, by operation of law or otherwise:


 


(a)               
Any Obligor fails to pay its Obligations when due (whether at stated maturity, on demand, upon acceleration or otherwise);


 


(b)               
Any representation, warranty or other written statement of an Obligor made in connection with any Loan Document or transaction
contemplated thereby is incorrect or misleading in any material respect when given;


 


(c)               
An Obligor breaches or fails to perform any covenant contained in Section 7.4.2, 8.2 (other than Section
8.2.1), 8.3 (other than Section 8.3.1), 8.5, 8.6.1, 8.6.2, 10.1.1, 10.1.2, 10.1.3, 10.1.13, 10.2 or 10.3;


 


(d)               
An Obligor breaches or fails to perform (i) any covenant contained in Section 8.1(y) (with respect to the delivery
of roll-forwards of all invoiced Accounts and collections and Inventory reports, together with accounts payable aging) or Section 8.3.1
(only with respect to the covenant to provide weekly reporting under Section 8.3.1 as required by Section 8.1(y)) and such
breach or failure is not cured within 1 day after a Senior Officer of such Obligor has knowledge thereof or receives notice thereof from
Agent, whichever is sooner, (ii) any covenant contained in Section 8.1 (other than Section 8.1(y) (with respect to the delivery
of roll-forwards of all invoiced Accounts and collections and Inventory reports, together with accounts payable aging)), 8.2.1
or 8.3.1 (other than with respect to the covenant to provide weekly reporting under Section 8.3.1 as required by Section
8.1(y)) and such breach or failure is not cured within 5 days after a Senior Officer of such Obligor has knowledge thereof or receives
notice thereof from Agent, whichever is sooner, (iii) any covenant contained in Section 7.4.1, 7.5, 7.7, 7.8, 10.1.7
or 10.1.12 and such breach or failure is not cured within 10 days after a Senior Officer of such Obligor has knowledge thereof
or receives notice thereof from Agent, whichever is sooner, or (iv) any other covenant contained in any Loan Document, and such breach
or failure is not cured within 20 days after a Senior Officer of such Obligor has knowledge thereof or receives notice thereof from Agent,
whichever is sooner; provided, however, that such notice and opportunity to cure shall not apply if the breach or failure
to perform is not capable of being cured within such period or is a willful breach by an Obligor;


 


(e)               
A Guarantor repudiates, revokes or attempts to revoke its Guaranty; an Obligor or third party denies or contests the validity
or enforceability of any Loan Document or Obligation, or the perfection or priority of any Lien granted to Agent; or any Loan Document
ceases to be in full force or effect for any reason (other than a waiver or release by Agent and Lenders);


 


(f)                
Any breach or default of an Obligor occurs under (i) any Hedging Agreement; (ii) any Convertible Notes Document; (iii) any
agreement or document governing or giving rise to Subordinated Debt, or any Person party thereto (other than Agent) shall materially breach
the terms of any subordination agreement or repudiate, revoke or attempt to revoke such subordination agreement, or any subordination
agreement ceases to be in full force or effect for any reason (other than a waiver or release by Agent), or (iv) any instrument or
agreement to which it is a party or by which it or any of its Properties is bound, relating to any Debt (other than the Obligations) in
excess of $250,000, if the maturity of or any payment with respect to such Debt may be accelerated or demanded due to such breach;


 


 


 






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(g)               
Any judgment or order for the payment of money is entered against an Obligor in an amount that exceeds, individually or
cumulatively with all unsatisfied judgments or orders against all Obligors, $500,000 (net of insurance coverage therefor that has not
been denied by the insurer), unless a stay of enforcement of such judgment or order is in effect;


 


(h)               
A loss, theft, damage or destruction occurs with respect to any Collateral if the amount not covered by insurance exceeds
$500,000;


 


(i)                 
An Obligor is enjoined, restrained or in any way prevented by any Governmental Authority from conducting any material part
of its business; an Obligor suffers the loss, revocation or termination of any material license, permit, lease or agreement necessary
to its business; there is a cessation of any material part of an Obligor’s business for a material period of time; any material
Collateral or Property of an Obligor is taken or impaired through condemnation; an Obligor agrees to or commences any liquidation, dissolution
or winding up of its affairs; or an Obligor is not Solvent;


 


(j)                 
An Insolvency Proceeding is commenced by an Obligor; an Obligor makes an offer of settlement, extension or composition to
its unsecured creditors generally; a trustee is appointed to take possession of any substantial Property of or to operate any of the business
of an Obligor; or an Insolvency Proceeding is commenced against an Obligor and the Obligor consents to institution of the proceeding,
the petition commencing the proceeding is not timely contested by the Obligor, the petition is not dismissed within 45 days after filing,
or an order for relief is entered in the proceeding;


 


(k)               
An ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan that has resulted or could reasonably be expected
to result in liability of an Obligor to a Pension Plan, Multiemployer Plan or PBGC in an amount in excess of $500,000, or that constitutes
grounds for appointment of a trustee for or termination by the PBGC of any Pension Plan or Multiemployer Plan; an Obligor or ERISA Affiliate
fails to pay when due any installment payment with respect to its withdrawal liability under Section 4201 of ERISA under a Multiemployer
Plan; or any event similar to the foregoing occurs or exists with respect to a Foreign Plan;


 


(l)                 
An Obligor or any of its Senior Officers is criminally indicted or convicted for (i) a felony committed in the conduct of
the Obligor’s business, or (ii) violating any state or federal law (including the Money Laundering Control Act of 1986 and Illegal
Exportation of War Materials Act) that could lead to forfeiture of any material Property or any Collateral; or


 


(m)             
A Change of Control occurs; or any event occurs or condition exists that has a Material Adverse Effect.


 


 


11.2           
Remedies upon Default. If an Event of Default described in Section 11.1(j) occurs with respect
to any Obligor, then to the extent permitted by Applicable Law, all Obligations (other than Secured Bank Product Obligations) shall become
automatically due and payable and all Commitments shall terminate, without any action by Agent or notice of any kind. In addition, or
if any other Event of Default exists, Agent may in its discretion (and shall upon written direction of Required Lenders) do any one or
more of the following from time to time:


 


(a)               
declare any Obligations (other than Secured Bank Product Obligations) immediately due and payable, whereupon they shall
be due and payable without diligence, presentment, demand, protest or notice of any kind, all of which are hereby waived by Borrowers
to the fullest extent permitted by law;


 


(b)               
terminate, reduce or condition any Commitment or adjust the Borrowing Base;


 


(c)               
require Obligors to Cash Collateralize their LC Obligations, Secured Bank Product Obligations and other Obligations that
are contingent or not yet due and payable, and if Obligors fail promptly to deposit such Cash Collateral, Agent may (and shall upon the
direction of Required Lenders) advance the required Cash Collateral as Revolver Loans (whether or not at such time Revolver Usage exceeds
the Borrowing Base or will exceed the Borrowing Base with the making of such Revolver Loans, or the conditions in Section 6 are
satisfied); and


 


 


 






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(d)               
exercise any other rights or remedies afforded under any Loan Document, by law, at equity or otherwise, including the rights
and remedies of a secured party under the UCC. Such rights and remedies include the rights to (i) take possession of any Collateral; (ii)
require Obligors to assemble Collateral, at Borrowers’ expense, and make it available to Agent at a place designated by Agent; (iii)
enter any premises where Collateral is located and store Collateral on such premises until sold (and if the premises are owned or leased
by an Obligor, Obligors agree not to charge for such storage); (iv) sell, assign, lease, license (on an exclusive or nonexclusive basis)
as Agent in its discretion deems advisable or otherwise dispose of any Collateral in its then condition, or after any further manufacturing
or processing thereof, at public or private sale, with such notice as may be required by Applicable Law, in lots or in bulk, at such locations,
as Agent in its discretion deems advisable and (v) bring suit or otherwise commence any action or proceeding to enforce any Account, contractual
right or Intellectual Property, all as Agent, in its discretion, deems advisable. Each Obligor agrees that 10 days’ notice of any
proposed sale or other disposition of Collateral by Agent shall be reasonable, and that any sale conducted on the internet or to a licensor
of Intellectual Property shall be commercially reasonable. Agent may conduct sales on any Obligor’s premises, without charge, and
any sale may be adjourned from time to time in accordance with Applicable Law. Agent shall have the right to sell, lease or otherwise
dispose of any Collateral for cash, credit or any combination thereof, and Agent may purchase any Collateral at public or, if permitted
by law, private sale and, in lieu of actual payment of the purchase price, may credit bid and set off the amount of such price against
the Obligations. Each purchaser at any such sale shall hold the property sold absolutely free from any claim or right on the part of any
Obligor, and each Obligor hereby waives (to the extent permitted by Applicable Law) all rights of redemption, stay and/or appraisal which
it now has or may at any time in the future have under any rule of law or statute now existing or hereafter enacted. Each Obligor agrees
that, to the extent notice of sale shall be required by law, at least ten (10) days’ notice to such Obligor of the time and place
of any public sale or the time after which any private sale is to be made shall constitute reasonable notification. Agent shall not be
obligated to make any sale of Collateral regardless of notice of sale having been given. Each Obligor agrees that it would not be commercially
unreasonable for Agent to dispose of the Collateral or any portion thereof by using Internet sites that provide for the auction of assets
of the types included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets.
Each Obligor hereby waives any claims against Agent arising by reason of the fact that the price at which any Collateral may have been
sold at such a private sale was less than the price which might have been obtained at a public sale, even if Agent accepts the first offer
received and does not offer such Collateral to more than one offeree. If the proceeds of any sale or other disposition of the Collateral
are insufficient to pay all the Obligations, Obligors shall be liable for the deficiency and the fees of any attorneys employed by Agent
to collect such deficiency. Each Obligor further agrees that a breach of any of the covenants contained in this Section 11.2 will
cause irreparable injury to Agent, that Agent has no adequate remedy at law in respect of such breach and, as a consequence, that each
and every covenant contained in this Section 11.2 shall be specifically enforceable against such Obligor, and such Obligor hereby
waives and agrees not to assert any defenses against an action for specific performance of such covenants, except for a defense that no
Default has occurred giving rise to the Obligations becoming due and payable prior to their stated maturities. Nothing in this Section
11.2 shall in any way alter the rights of Agent hereunder. Agent may sell the Collateral without giving any warranties as to the Collateral.
Agent may specifically disclaim or modify any warranties of title or the like. This procedure will not be considered to adversely affect
the commercial reasonableness of any sale of the Collateral. If Agent shall have no obligation to marshal any of the Collateral. If Agent
sells any of the Collateral upon credit, Obligor will be credited only with payments actually made by purchaser and received by Agent
and applied to indebtedness of the purchaser. In the event the purchaser fails to pay for the Collateral, Agent may resell the Collateral
and Obligor shall be credited with proceeds of the sale.


 


11.3           
License. Agent is hereby granted an irrevocable, non-exclusive license or other right to use, license
or sub-license (without payment of royalty or other compensation to any Person) any or all Intellectual Property owned or used by or
licensed to any Obligor, computer hardware and software, trade secrets, brochures, customer lists, promotional and advertising materials,
labels, packaging materials and other Property, in advertising for sale, marketing, selling, collecting, completing manufacture of, or
otherwise exercising any rights or remedies with respect to, any Collateral. Each Obligor’s rights and interests under Intellectual
Property shall inure to Agent’s benefit.


 


11.4           
Setoff. At any time during an Event of Default, Agent, Issuing Bank, Lenders, and any of their Affiliates
are authorized, to the fullest extent permitted by Applicable Law, to set off and apply any and all deposits (general or special, time
or demand, provisional or final, in whatever currency) at any time held and other obligations (in whatever currency) at any time owing
by Agent, Issuing Bank, such Lender or such Affiliate to or for the credit or the account of an Obligor against its Obligations, whether
or not Agent, Issuing Bank, such Lender or such Affiliate shall have made any demand under this Agreement or any other Loan Document
and although such Obligations may be contingent or unmatured or are owed to a branch or office of Agent, Issuing Bank, such Lender or
such Affiliate different from the branch or office holding such deposit or obligated on such indebtedness. The rights of Agent, Issuing
Bank, each Lender and each such Affiliate under this Section are in addition to other rights and remedies (including other rights of
setoff) that such Person may have.


 


 


 






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11.5           
Remedies Cumulative; No Waiver.


 


11.5.1      
Cumulative Rights. All agreements, warranties, guaranties, indemnities and other undertakings of Obligors under the
Loan Documents are cumulative and not in derogation of each other. The rights and remedies of Agent and Lenders are cumulative, may be
exercised at any time and from time to time, concurrently or in any order, and are not exclusive of any other rights or remedies available
by agreement, by law, at equity or otherwise. All such rights and remedies shall continue in full force and effect until Full Payment
of all Obligations.


 


11.5.2      
Waivers. No waiver or course of dealing shall be established by (a) the failure or delay of Agent or any Lender to
require strict performance by any Obligor under any Loan Document, or to exercise any rights or remedies with respect to Collateral or
otherwise; (b) the making of any Loan or issuance of any Letter of Credit during a Default, Event of Default or other failure to satisfy
any conditions precedent; or (c) acceptance by Agent or any Lender of any payment or performance by an Obligor under any Loan Documents
in a manner other than that specified therein. Any failure to satisfy a financial covenant on a measurement date shall not be cured or
remedied by satisfaction of such covenant on a subsequent date.


 


SECTION
12.      AGENT


 


12.1           
Appointment, Authority and Duties of Agent.


 


12.1.1      
Appointment and Authority. Each Secured Party irrevocably appoints and designates CNC as Agent under all Loan Documents.
Agent may, and each Secured Party irrevocably authorizes Agent to, enter into all Loan Documents to which Agent is intended to be a party
and accept all Security Documents. Any action taken by Agent in accordance with the provisions of the Loan Documents, and the exercise
by Agent of any rights or remedies set forth therein, together with all other powers reasonably incidental thereto, shall be authorized
by and binding upon all Secured Parties. Without limiting the generality of the foregoing, Agent shall have the sole and exclusive authority
to (a) act as the disbursing and collecting agent for Lenders with respect to all payments and collections arising in connection with
the Loan Documents; (b) execute and deliver as Agent each Loan Document (including any intercreditor and/or subordination agreement),
and accept delivery of each Loan Document; (c) act as collateral agent for Secured Parties for purposes of perfecting and administering
Liens under the Loan Documents, and for all other purposes stated therein; (d) manage, supervise or otherwise deal with Collateral; and
(e) take any Enforcement Action or otherwise exercise any rights or remedies with respect to any Collateral or under any Loan Documents,
Applicable Law or otherwise. Agent alone shall be authorized to determine eligibility and applicable advance rates under the Borrowing
Base, whether to impose or release any reserve, or whether any conditions to funding or issuance of a Letter of Credit have been satisfied,
which determinations and judgments, if exercised in good faith, shall exonerate Agent from liability to any Secured Party or other Person
for any error in judgment.


 


12.1.2      
Duties. The title of “Agent” is used solely as a matter of market custom and the duties of Agent are
administrative in nature only. Agent has no duties except those expressly set forth in the Loan Documents, and in no event does Agent
have any agency, fiduciary or implied duty to or relationship with any Secured Party or other Person by reason of any Loan Document or
related transaction. The conferral upon Agent of any right shall not imply a duty to exercise such right, unless instructed to do so by
Lenders in accordance with this Agreement.


 


12.1.3      
Agent Professionals. Agent may perform its duties through agents and employees. Agent may consult with and employ
Agent Professionals, and shall be entitled to act upon, and shall be fully protected in any action taken in good faith reliance upon,
any advice given by an Agent Professional. Agent shall not be responsible for the negligence or misconduct of any agents, employees or
Agent Professionals that it selects in the absence of the Agent’s gross negligence or willful misconduct (as finally determined
in a non-appealable decision of a court of competent jurisdiction).


 


 


 






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12.1.4      
Instructions of Required Lenders. The rights and remedies conferred upon Agent under the Loan Documents may be exercised
without the necessity of joining any other party, unless required by Applicable Law. In determining compliance with a condition for any
action hereunder, including satisfaction of any condition in Section 6, Agent may presume that the condition is satisfactory to
a Secured Party unless Agent has received notice to the contrary from such Secured Party before Agent takes the action. Agent may request
instructions from Required Lenders or other Secured Parties with respect to any act (including the failure to act) in connection with
any Loan Documents or Collateral, and may seek assurances to its satisfaction from Secured Parties of their indemnification obligations
against Claims that could be incurred by Agent. Agent may refrain from any act until it has received such instructions or assurances,
and shall not incur liability to any Person by reason of so refraining. Instructions of Required Lenders shall be binding upon all Secured
Parties, and no Secured Party shall have any right of action whatsoever against Agent as a result of Agent acting or refraining from acting
pursuant to instructions of Required Lenders. Notwithstanding the foregoing, instructions by and consent of specific parties shall be
required to the extent provided in Section 14.1.1. In no event shall Agent be required to take any action that it determines in
its discretion is contrary to Applicable Law or any Loan Documents or could subject any Agent Indemnitee to liability.


 


12.1.5      
Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy,
reorganization, arrangement, adjustment, composition or other judicial proceeding relative to any Obligor, the Agent (irrespective of
whether the principal of any Loan, LC Obligations or Swingline Loans shall then be due and payable as herein expressed or by declaration
or otherwise and irrespective of whether the Agent shall have made any demand on the Obligors) shall be entitled and empowered, by intervention
in such proceeding or otherwise:


 


(a)               
to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, LC
Obligations, Swingline Loans and all other Obligations that are owing and unpaid and to file such other documents as may be necessary
or advisable in order to have the claims of Secured Parties and Agent (including any claim for the reasonable compensation, expenses,
disbursements and advances of Secured Parties and the Agent and their respective agents and counsel and all other amounts due Secured
Parties and the Agent under Sections 3.2, 3.4 and 10.1.1(b).


 


(b)               
to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;


 


and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Secured Party to make
such payments to Agent and, in the event that Agent shall consent to the making of such payments directly to Secured Parties, to pay to
Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Agent and its agents and counsel, and any
other amounts due Agent under Sections 3.2, 3.4 and 10.1.1(b).


 


12.2           
Agreements Regarding Collateral; Borrower Materials; Credit Bidding.


 


12.2.1      
Lien Releases; Care of Collateral. Secured Parties authorize Agent to release any Lien on any Collateral (a) upon
Full Payment of the Obligations; (b) that is the subject of a disposition or Lien that Borrowers certify in writing is a Permitted Asset
Disposition or a Permitted Lien entitled to priority over Agent’s Liens (and Agent may rely conclusively on such certificate without
further inquiry); (c) that does not constitute a material part of the Collateral; or (d) subject to Section 14.1, with the consent
of Required Lenders, and to execute in connection with such events such payoff letters and related documentation in form and substance
satisfactory to Agent in its sole discretion, as shall in Agent's sole discretion be deemed advisable. Secured Parties authorize Agent
to subordinate its Liens to any Purchase Money Lien or other Lien entitled to priority hereunder. Agent has no obligation to assure that
any Collateral exists or is owned by an Obligor, or is cared for, protected or insured, nor to assure that Agent’s Liens have been
properly created, perfected or enforced, or are entitled to any particular priority, nor to exercise any duty of care with respect to
any Collateral.


 


12.2.2      
Possession of Collateral. Agent and Secured Parties appoint each Secured Party as agent (for the benefit of Secured
Parties) for the purpose of perfecting Liens in Collateral held or controlled by it, to the extent such Liens are perfected by possession
or control. If a Secured Party obtains possession or control of any Collateral, it shall notify Agent thereof and, promptly upon Agent’s
request, deliver such Collateral to Agent or otherwise deal with it in accordance with Agent’s instructions.


 


 


 






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12.2.3      
Reports. Agent shall promptly provide to Lenders, when complete, any field examination, audit or appraisal report
prepared for Agent with respect to any Obligor or Collateral (“Report”). Reports and other Borrower Materials may be
made available to Lenders by providing access to them on the Platform, but Agent shall not be responsible for system failures or access
issues that may occur from time to time. Each Lender agrees (a) that Reports are not intended to be comprehensive audits or examinations,
and that Agent or any other Person performing an audit or examination will inspect only limited information and will rely significantly
upon Borrowers’ books, records and representations; (b) that Agent makes no representation or warranty as to the accuracy or completeness
of any Borrower Materials and shall not be liable for any information contained in or omitted from any Borrower Materials, including any
Report; and (c) to keep all Borrower Materials confidential and strictly for such Lender’s internal use, not to distribute any Report
or other Borrower Materials (or the contents thereof) to any Person (except to such Lender’s Participants, attorneys and accountants),
and to use all Borrower Materials solely for administration of the Obligations. Each Lender shall indemnify and hold harmless Agent and
any other Person preparing a Report from any action such Lender may take as a result of or any conclusion it may draw from any Borrower
Materials, as well as from any Claims arising as a direct or indirect result of Agent furnishing same to such Lender, via the Platform
or otherwise.


 


12.2.4      
Credit Bidding. Secured Parties hereby irrevocably authorize Agent (absent, with respect to any particular transaction,
Agent receiving contrary written bidding instructions from the Required Lenders before such transaction), to credit bid all or any portion
of the Obligations (including accepting some or all of the Collateral in satisfaction of some or all of the Obligations pursuant to a
deed in lieu of foreclosure or otherwise) and in such manner purchase (either directly or through one or more acquisition vehicles) all
or any portion of the Collateral (a) at any sale thereof conducted under the provisions of the Bankruptcy Code, including under Section
363, 1123 or 1129 of the Bankruptcy Code, or any similar Laws in any other jurisdictions to which an Obligor is subject, (b) at any other
sale or foreclosure or acceptance of collateral in lieu of debt conducted by (or with the consent or at the direction of) Agent (whether
by judicial action or otherwise) in accordance with any Applicable Law.  In connection with any such credit bid and purchase, the
Obligations owed to Secured Parties shall be entitled to be, and shall be, credit bid on a ratable basis (with Obligations with respect
to contingent or unliquidated claims receiving contingent interests in the acquired assets on a ratable basis that would vest upon the
liquidation of such claims in an amount proportional to the liquidated portion of the contingent claim amount used in allocating the contingent
interests) in the asset or assets so purchased (or in the Equity Interest or debt instruments of the acquisition vehicle or vehicles that
are used to consummate such purchase).  In connection with any such bid Agent shall be authorized (i) to form one or more acquisition
vehicles to make a bid, (ii) to adopt documents providing for the governance of the acquisition vehicle or vehicles (provided that
any actions by Agent with respect to such acquisition vehicle or vehicles, including any disposition of the assets or Equity Interest
thereof shall be governed, directly or indirectly, by the vote of Required Lenders, irrespective of the termination of this Agreement
and without giving effect to the limitations on actions by Required Lenders contained in clauses (a) through (g) of Section
14.1.1 of this Agreement (provided that, in any event, the consent of each Lender shall be required for any amendment that
would treat or attempts to treat a Lender or a class of Lenders in a manner different than all other Lenders), and (iii) to the extent
that Obligations that are assigned to an acquisition vehicle are not used to acquire Collateral for any reason (as a result of another
bid being higher or better, because the amount of Obligations assigned to the acquisition vehicle exceeds the amount of debt credit bid
by the acquisition vehicle or otherwise), such Obligations shall automatically be reassigned to the Lenders pro rata and the Equity Interest
and/or debt instruments issued by any acquisition vehicle on account of the Obligations that had been assigned to the acquisition vehicle
shall automatically be cancelled, without the need for any Secured Party or any acquisition vehicle to take any further action.


 


12.3           
Reliance By Agent.


 


(a)               
Agent shall be entitled to rely, and shall be fully protected in relying, upon any writing, communication, signature, resolution,
representation, notice, consent, certificate, affidavit, letter, telegram, facsimile, telex or telephone message, electronic mail message,
statement or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper
Person or Persons, and upon advice and statements of legal counsel (including counsel to any Obligor), independent accountants and other
experts selected by Agent. Agent shall have a reasonable and practicable amount of time to act upon any instruction, notice or other communication
under any Loan Document and shall not be liable for any delay in acting. Agent shall be fully justified in failing or refusing to take
any action under any Loan Document unless it shall first receive such advice or concurrence of Required Lenders as it deems appropriate
and, if it so requests, it shall first be indemnified to its satisfaction by Secured Parties against any and all liability and expense
which may be incurred by it by reason of taking or continuing to take any such action. Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of Required
Lenders (or such greater number of Lenders as may be expressly required hereby in any instance) and such request and any action taken
or failure to act pursuant thereto shall be binding upon all Secured Parties. Notwithstanding the foregoing, Agent shall not be required
to take, or to omit to take, any action that is, in the opinion of Agent or its counsel, contrary to any Loan Document or Applicable Law.


 


 


 






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(b)               
For purposes of determining compliance with the conditions specified in Article 6, each Lender that has signed this
Agreement (or an addendum or joinder to this Agreement) shall be deemed to have consented to, approved or accepted or to be satisfied
with, each document or other matter required hereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless
Agent shall have received notice from such Lender prior to the proposed Closing Date specifying its objection thereto.


 


12.4           
Action Upon Default. Agent shall not be deemed to have knowledge of any Default or Event of Default,
or of any failure to satisfy any conditions in Section 6, unless it has received written notice from a Borrower or Required Lenders
specifying the occurrence and nature thereof. If a Lender acquires knowledge of a Default, Event of Default or failure of such conditions,
it shall promptly notify Agent and the other Lenders thereof in writing. Each Secured Party agrees that, except as otherwise provided
in any Loan Documents or with the written consent of Agent and Required Lenders, it will not take any Enforcement Action, accelerate
Obligations (other than Secured Bank Product Obligations) or assert any rights relating to any Collateral.


 


12.5           
Ratable Sharing. If any Lender obtains any payment or reduction of any Obligation, whether through set-off
or otherwise, in excess of its ratable share of such Obligation, such Lender shall forthwith purchase from Secured Parties participations
in the affected Obligation as are necessary to share the excess payment or reduction on a Pro Rata basis or in accordance with Section
5.6.2, as applicable. If any of such payment or reduction is thereafter recovered from the purchasing Lender, the purchase shall
be rescinded and the purchase price restored to the extent of such recovery, but without interest. Notwithstanding the foregoing, if
a Defaulting Lender obtains a payment or reduction of any Obligation, it shall immediately turn over the full amount thereof to Agent
for application under Section 4.2.2 and it shall provide a written statement to Agent describing the Obligation affected by such
payment or reduction. No Lender shall set off against a Dominion Account without Agent’s prior consent.


 


12.6           
Indemnification. EACH SECURED PARTY SHALL INDEMNIFY AND HOLD HARMLESS AGENT INDEMNITEES AND ISSUING
BANK INDEMNITEES, TO THE EXTENT NOT REIMBURSED BY OBLIGORS, ON A PRO RATA BASIS, AGAINST ALL CLAIMS THAT MAY BE INCURRED BY OR ASSERTED
AGAINST ANY SUCH INDEMNITEE, PROVIDED THAT ANY CLAIM AGAINST AN AGENT INDEMNITEE RELATES TO OR ARISES FROM ITS ACTING AS OR FOR AGENT
(IN THE CAPACITY OF AGENT). In Agent’s discretion, it may reserve for any Claims made against an Agent Indemnitee or Issuing Bank
Indemnitee, and may satisfy any judgment, order or settlement relating thereto, from proceeds of Collateral prior to making any distribution
of Collateral proceeds to Secured Parties. If Agent is sued by any receiver, trustee or other Person for any alleged preference or fraudulent
transfer, then any monies paid by Agent in settlement or satisfaction of such proceeding, together with all interest, costs and expenses
(including attorneys’ fees) incurred in the defense of same, shall be promptly reimbursed to Agent by each Secured Party to the
extent of its Pro Rata share. No Lender shall be liable for the payment to any Indemnitee of any portion of such claims to the extent
determined in a final, non-appealable judgment by a court of competent jurisdiction to have resulted primarily from such Indemnitee’s
own gross negligence or willful misconduct; provided, however, that no action taken in furtherance of the directions of Required Lenders
shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section 12.6. Without limitation
of the foregoing, each Lender shall reimburse each Indemnitee upon demand for its ratable share of any costs or out-of-pocket expenses
(including attorney costs) incurred by any Indemnitee in connection with the preparation, execution, delivery, administration, modification,
amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities
under, this Agreement, any other Loan Document, or any document contemplated by or referred to herein. The obligations of Lenders hereunder
shall not diminish the obligations of Obligors to indemnify and reimburse the Indemnitees for such amounts. Agent may in its discretion
first seek payment from Lenders hereunder before seeking payment from the Obligors for such amounts or may seek payments first from Obligors.
In any event, any amounts received from Obligors as reimbursement for amounts already reimbursed by Lenders shall be paid to Lenders
in accordance with the terms hereof. The undertaking in this Section 12.6 shall survive the termination of this Agreement
and the resignation of the Agent.


 


 


 






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12.7           
Limitation on Responsibilities of Agent. Agent shall not be liable to any Secured Party for any action
taken or omitted to be taken under the Loan Documents, except for losses directly and solely caused by Agent’s gross negligence
or willful misconduct. Agent does not assume any responsibility for any failure or delay in performance or any breach by any Obligor,
Lender or other Secured Party of any obligations under the Loan Documents. Agent does not make any express or implied representation,
warranty or guarantee to Secured Parties with respect to any Obligations, Collateral, Liens, Loan Documents or Obligor. Without limitation
of the foregoing, no Agent Indemnitee shall be responsible to Secured Parties for any recitals, statements, information, representations
or warranties contained in any Loan Documents or Borrower Materials; the execution, validity, genuineness, effectiveness or enforceability
of any Loan Documents; the genuineness, enforceability, collectability, value, sufficiency, ownership, state or condition, insurance
regarding, location or existence of any Collateral, or the validity, creation, extent, perfection, continuation, or priority of any Lien
therein; any assignment or participation of the Obligations, or disclosure of any information to any Secured Party or such Secured Party's
representatives or Affiliates; the validity, enforceability or collectability of any Obligations; or the assets, liabilities, financial
condition, results of operations, business, creditworthiness or legal status of any Obligor or Account Debtor. No Agent Indemnitee shall
have any obligation to any Secured Party to ascertain or inquire into the existence of any Default or Event of Default, the observance
by any Obligor of any terms of the Loan Documents, or the satisfaction or waiver of any conditions precedent contained in any Loan Documents.
In addition and not in limitation of the foregoing, it is understood and agreed that in respect of the Collateral, or any act, omission
or event related thereto, Agent may act in any manner it may deem appropriate, in its sole discretion, given Agent's own interest in
the Collateral in its capacity as one of the Secured Parties, and that Agent shall have no other duty or liability whatsoever to any
Secured Party as to any of the foregoing, including, without limitation, the preparation, form or filing of any Uniform Commercial Code
financing statement, amendment or continuation or of any other type of document related to the creation, perfection, continuation or
priority of any Lien as to property of Obligors.


 


12.8           
Successor Agent and Co-Agents.


 


12.8.1      
Resignation; Successor Agent. Agent may resign at any time by giving at least 10 days written notice thereof to Lenders
and Borrowers. Required Lenders may appoint a successor that is (a) a Lender or Affiliate of a Lender; or (b) a financial institution
reasonably acceptable to Required Lenders and (provided no Default or Event of Default exists) Borrowers. If no successor is appointed
by the effective date of Agent’s resignation, then on such date, Agent may appoint a successor acceptable to it in its discretion
(which shall be a Lender unless no Lender accepts the role) or, in the absence of such appointment, Required Lenders shall automatically
assume all rights and duties of Agent. The successor Agent shall thereupon succeed to and become vested with all the powers and duties
of the retiring Agent without further act. The retiring Agent shall be discharged from its duties hereunder on the effective date of its
resignation, but shall continue to have all rights and protections available to Agent under the Loan Documents with respect to actions,
omissions, circumstances or Claims relating to or arising while it was acting or transferring responsibilities as Agent or holding any
Collateral on behalf of Secured Parties, including the indemnification set forth in Sections 12.6 and 14.2, and all
rights and protections under this Section 12. Any successor to CNC by merger or acquisition of stock or this loan shall continue
to be Agent hereunder without further act on the part of any Secured Party or Obligor.


 


12.8.2      
Co-Collateral Agent. If appropriate under Applicable Law, Agent may appoint a Person to serve as a co-collateral
agent or separate collateral agent under any Loan Document. Each right, remedy and protection intended to be available to Agent under
the Loan Documents shall also be vested in such agent. Secured Parties shall execute and deliver any instrument or agreement that Agent
may request to effect such appointment. If any such agent shall die, dissolve, become incapable of acting, resign or be removed, then
all the rights and remedies of the agent, to the extent permitted by Applicable Law, shall vest in and be exercised by Agent until appointment
of a new agent.


 


 


 






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12.9           
Due Diligence and Non-Reliance. Each Lender acknowledges and agrees that it has, independently and without
reliance upon Agent or any other Lenders, and based upon such documents, information and analyses as it has deemed appropriate, made
its own credit analysis of each Obligor and its own decision to enter into this Agreement and to fund Loans and participate in LC Obligations
hereunder. Each Secured Party has made such inquiries as it feels necessary concerning the Loan Documents, Collateral and Obligors. Each
Secured Party acknowledges and agrees that the other Secured Parties have made no representations or warranties concerning any Obligor,
any Collateral or the legality, validity, sufficiency or enforceability of any Loan Documents or Obligations. Each Secured Party will,
independently and without reliance upon any other Secured Party, and based upon such financial statements, documents and information
as it deems appropriate at the time, continue to make and rely upon its own credit decisions in making Loans and participating in LC
Obligations, and in taking or refraining from any action under any Loan Documents. Except for notices, reports and other information
expressly required to be furnished to the Lenders by Agent by this Agreement, no Agent Indemnitee shall have any duty or responsibility
to provide any Secured Party with any notices, reports or certificates furnished to any Agent Indemnitee by any Obligor or any credit
or other information concerning the affairs, financial condition, credit worthiness, business or Properties of any Obligor (or any of
its Affiliates) which may come into possession of any Agent Indemnitee or its Affiliates.


 


12.10       
Remittance of Payments and Collections. 


 


12.10.1  
Remittances Generally. Payments by any Secured Party to Agent shall be made by the time and date provided herein,
in immediately available funds. If no time for payment is specified or if payment is due on demand and request for payment is made by
Agent by 1:00 p.m. on a Business Day, then payment shall be made by the Secured Party by 3:00 p.m. on such day, and if request is made
after 1:00 p.m., then payment shall be made by 11:00 a.m. on the next Business Day. Payment by Agent to any Secured Party shall be made
by wire transfer, in the type of funds received by Agent. Any such payment shall be subject to Agent’s right of offset for any amounts
due from such payee under the Loan Documents.


 


12.10.2  
Failure to Pay. If any Secured Party fails to deliver when due any amount payable by it to Agent hereunder, such
amount shall bear interest, from the due date until paid in full, at the greater of the Federal Funds Rate or the rate determined by Agent
as customary for interbank compensation for two Business Days and thereafter at the Default Rate for Base Rate Revolver Loans. In no event
shall Borrowers be entitled to credit for any interest paid by a Secured Party to Agent, nor shall a Defaulting Lender be entitled to
interest on amounts held by Agent pursuant to Section 4.2.


 


12.10.3  
Recovery of Payments. If Agent pays an amount to a Secured Party in the expectation that a related payment will be
received by Agent from an Obligor and such related payment is not received, then Agent may recover such amount from the Secured Party.
If Agent determines that an amount received by it must be returned or paid to an Obligor or other Person pursuant to Applicable Law or
otherwise, then Agent shall not be required to distribute such amount to any Secured Party. If Agent is required to return any amounts
applied by it to Obligations held by a Secured Party, such Secured Party shall pay to Agent, on demand, its share of the amounts
required to be returned.


 


12.11       
Individual Capacities. As a Lender, CNC shall have the same rights and remedies under the Loan Documents
as any other Lender, and the terms “Lenders,” “Required Lenders” or any similar term shall include CNC in its
capacity as a Lender. Agent, Lenders and their Affiliates may accept deposits from, lend money to, provide Bank Products to, act as financial
or other advisor to, and generally engage in any kind of business with, Obligors and their Affiliates, as if they were not Agent or Lenders
hereunder, without any duty to account therefor to any Secured Party. In their individual capacities, Agent, Lenders and their Affiliates
may receive information regarding Obligors, their Affiliates and their Account Debtors (including information subject to confidentiality
obligations), and shall have no obligation to provide such information to any Secured Party.


 


12.12       
Titles. Each Lender, other than CNC, that is designated in connection with this credit facility
as an “Arranger,” “Bookrunner” or “Agent” of any kind shall have no right or duty under any Loan
Documents other than those applicable to all Lenders, and shall in no event have any fiduciary duty to any Secured Party.


 


 


 






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12.13       
Bank Product Providers. Each Secured Bank Product Provider, by delivery of a notice to Agent of
a Bank Product, agrees to be bound by the Loan Documents, including Sections 5.6, 14.3.3 and 12. Each Secured Bank
Product Provider shall indemnify and hold harmless Agent Indemnitees, to the extent not reimbursed by Obligors, against all Claims that
may be incurred by or asserted against any Agent Indemnitee in connection with such provider’s Secured Bank Product Obligations.


 


12.14       
Flood Laws. Agent has adopted internal policies and procedures that address requirements under Flood
Laws. Agent may post on the Platform (or otherwise distribute to each Lender in the syndicate) documents that it receives in connection
with the Flood Laws. However, Agent reminds each Lender and Participant in the facility that, pursuant to the Flood Laws, each federally
regulated Lender (whether acting as a Lender or Participant in the credit facility) is responsible for assuring its own compliance with
Flood Laws, and Agent disclaims any liability in connection with the failure of any such Lender or Participant to comply with Flood Laws
and flood insurance requirements.


 


12.15       
No Third Party Beneficiaries. This Section 12 is an agreement solely among Secured Parties and
Agent, and shall survive Full Payment of the Obligations. This Section 12 does not confer any rights or benefits upon Borrowers
or any other Person. As between Borrowers and Agent, any action that Agent may take under any Loan Documents or with respect to any Obligations
shall be conclusively presumed to have been authorized and directed by Secured Parties.


 


12.16       
Certain ERISA Matters.


 


12.16.1  
Each Lender (x) represents and warrants, as of the date such Person became a Lender party hereto, to, and (y) covenants,
from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto, for the benefit of,
Agent and not, for the avoidance of doubt, to or for the benefit of the Borrowers, that at least one of the following is and will be true:


 


(a)               
such Lender is not using "plan assets" (within the meaning of Section 3(42) of ERISA or otherwise for purposes
of Title I of ERISA or Section 4975 of the Code) of one or more Benefit Plans with respect to such Lender's entrance into, participation
in, administration of and performance of the Loans, the Commitments or this Agreement;


 


(b)               
the prohibited transaction exemption set forth in one or more PTEs, such as PTE 84-14 (a class exemption for certain transactions
determined by independent qualified professional asset managers), PTE 95-60 (a class exemption for certain transactions involving insurance
company general accounts), PTE 90-1 (a class exemption for certain transactions involving insurance company pooled separate accounts),
PTE 91-38 (a class exemption for certain transactions involving bank collective investment funds) or PTE 96-23 (a class exemption for
certain transactions determined by in-house asset managers), is applicable so as to exempt from the prohibitions of Section 406 of ERISA
and Section 4975 of the Code such Lender's entrance into, participation in, administration of and performance of the Loans, the Commitments
and this Agreement;


 


(c)               
(i) such Lender is an investment fund managed by a "Qualified Professional Asset Manager" (within the meaning
of Part VI of PTE 84-14), (ii) such Qualified Professional Asset Manager made the investment decision on behalf of such Lender to
enter into, participate in, administer and perform the Loans, the Commitments and this Agreement, (iii) the entrance into, participation
in, administration of and performance of the Loans, the Commitments and this Agreement satisfies the requirements of sub-sections (b)
through (g) of Part I of PTE 84- 14, and (iv) to the best knowledge of such Lender, the requirements of subsection (a) of Part I
of PTE 84-14 are satisfied with respect to such Lender's entrance into, participation in, administration of and performance of the Loans,
the Commitments and this Agreement; or


 


(d)               
such other representation, warranty and covenant as may be agreed in writing between Agent, in its sole discretion, and
such Lender.


 


 


 






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12.16.2  
In addition, unless either (1) sub-clause (i) in the immediately preceding clause (c) is true with respect to a Lender
or (2) a Lender has provided another representation, warranty and covenant in accordance with sub-clause (iv) in the immediately
preceding clause (c), such Lender further (x) represents and warrants, as of the date such Person became a Lender party hereto, and
(y) covenants, from the date such Person became a Lender party hereto to the date such Person ceases being a Lender party hereto,
for the benefit of, Agent and not, for the avoidance of doubt, to or for the benefit of the Borrowers, that Agent is not a fiduciary with
respect to the assets of such Lender involved in such Lender's entrance into, participation in, administration of and performance of the
Loans, the Commitments and this Agreement (including in connection with the reservation or exercise of any rights by Agent under this
Agreement, any Loan Document or any documents related hereto or thereto).


 


12.17       
Recovery of Payments; Presumption by Agent.


 


12.17.1  
If Agent determines that an amount received by it must be returned or paid to an Obligor or other Person pursuant to Applicable
Law or otherwise, then, notwithstanding any other term of any Loan Document, Agent shall not be required to distribute such amount to
any Secured Party. If any amounts received and applied by Agent to any Obligations are later required to be returned by Agent pursuant
to Applicable Law, each Lender shall pay to Agent, on demand, such Lender's Pro Rata share of the amounts required to be returned.


 


12.17.2  
Unless Agent shall have received notice from Borrower Agent prior to the date on which any payment is due to Agent for the
account of the Lenders or hereunder that the Borrowers will not make such payment, Agent may assume that the Borrowers have made such
payment on such date in accordance herewith and may, in reliance upon such assumption, distribute to the Lenders the amount due.


 


12.17.3  
With respect to any payment that Agent makes for the account of the Lenders hereunder as to which Agent determines (which
determination shall be conclusive absent manifest error) that any of the following applies (such payment referred to as the "Rescindable
Amount"): (1) the Borrowers have not in fact made such payment; (2) Agent has made a payment in excess of the amount
so paid by Borrowers (whether or not then owed); or (3) Agent has for any reason otherwise erroneously made such payment; then each
of the Lenders severally agrees to repay to Agent forthwith on demand the Rescindable Amount so distributed to such Lender or, in immediately
available funds with interest thereon, for each day from and including the date such amount is distributed to it to but excluding the
date of payment to Agent, at the greater of the Federal Funds Rate and a rate determined by Agent in accordance with banking industry
rules on interbank compensation. A notice of Agent to any Lender or the Borrower Agent with respect to any amount owing under this Section
12.17 shall be conclusive, absent manifest error.


 


12.17.4  
Without limitation of any other provision in this Agreement, if at any time Agent makes a payment hereunder in error to
any Lender (the "Credit Party"), whether or not in respect of an Obligation due and owing by Borrowers at such time,
where such payment is a Rescindable Amount, then in any such event, each Credit Party receiving a Rescindable Amount severally agrees
to repay to Agent forthwith on demand the Rescindable Amount received by such Credit Party in immediately available funds in the currency
so received, with interest thereon, for each day from and including the date such Rescindable Amount is received by it to but excluding
the date of payment to Agent, at the greater of the Federal Funds Rate and a rate determined by Agent in accordance with banking industry
rules on interbank compensation. Each Credit Party irrevocably waives any and all defenses, including any "discharge for value"
(under which a creditor might otherwise claim a right to retain funds mistakenly paid by a third party in respect of a debt owed by another)
or similar defense to its obligation to return any Rescindable Amount. Agent shall inform each Credit Party promptly upon determining
that any payment made to such Credit Party comprised, in whole or in part, a Rescindable Amount.


 


SECTION
13.      BENEFIT
OF AGREEMENT; ASSIGNMENTS


 


13.1           
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of Obligors, Agent,
Lenders, Secured Parties, and their respective successors and assigns, except that (a) no Obligor shall have the right to assign its
rights or delegate its obligations under any Loan Documents; and (b) any assignment by a Lender must be made in compliance with Section
13.3. Agent may treat the Person which made any Loan as the owner thereof for all purposes until such Person makes an assignment
in accordance with Section 13.3. Any authorization or consent of a Lender shall be conclusive and binding on any subsequent transferee
or assignee of such Lender.


 


 


 






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13.2           
Participations.


 


13.2.1      
Permitted Participants; Effect. Subject to Section 13.3.3, any Lender may sell to a financial institution
(“Participant”) a participating interest in the rights and obligations of such Lender under any Loan Documents.
Despite any sale by a Lender of participating interests to a Participant, such Lender’s obligations under the Loan Documents shall
remain unchanged, it shall remain solely responsible to the other parties hereto for performance of such obligations, it shall remain
the holder of its Loans and Commitments for all purposes, all amounts payable by Borrowers shall be determined as if it had not sold such
participating interests, and Borrowers and Agent shall continue to deal solely and directly with such Lender in connection with the Loan
Documents. Each Lender shall be solely responsible for notifying its Participants of any matters under the Loan Documents, and Agent and
the other Lenders shall not have any obligation or liability to any such Participant. A Participant that would be a Foreign Lender if
it were a Lender shall not be entitled to the benefits of Section 5.9 unless Borrowers agree otherwise in writing.


 


13.2.2      
Voting Rights. Each Lender shall retain the sole right to approve, without the consent of any Participant, any amendment,
waiver or other modification of a Loan Document other than that which forgives principal, interest or fees, reduces the stated interest
rate or fees payable with respect to any Loan or Commitment in which such Participant has an interest, postpones the Commitment Termination
Date or any date fixed for any regularly scheduled payment of principal, interest or fees on such Loan or Commitment, or releases any
Borrower, Guarantor or substantially all Collateral.


 


13.2.3      
Participant Register. Each Lender that sells a participation shall, acting as a non-fiduciary agent of Borrowers
(solely for tax purposes), maintain a register ("Participant Register") in which it enters the Participant’s
name, address and interest in Commitments and Loans (and stated interest) and LC Obligations. Entries in the Participant Register shall
be conclusive, absent manifest error, and such Lender shall treat each Person recorded in the Participant Register as the owner of the
participation for all purposes, notwithstanding any notice or knowledge to the contrary. No Lender shall have an obligation to disclose
any information in such Participant Register except to the extent necessary to establish that a Participant’s interest is in registered
form under the Code. For avoidance of doubt, Agent (in its capacity as Agent) shall have no responsibility for maintaining a Participant
Register.


 


13.2.4      
Benefit of Setoff. Each Participant shall have a right of set-off in respect of its participating interest to the
same extent as if such interest were owing directly to a Lender, and each Lender shall also retain the right of set-off with respect to
any participating interests sold by it. By exercising any right of set-off, a Participant agrees to share with Lenders all amounts received
through its set-off, in accordance with Section 12.5 as if such Participant were a Lender.


 


13.3           
Assignments.


 


13.3.1      
Permitted Assignments. A Lender may assign to an Eligible Assignee any of its rights and obligations under the Loan
Documents, as long as (a) each assignment is of a constant, and not a varying, percentage of the transferor Lender’s rights and
obligations under the Loan Documents and, in the case of a partial assignment, is in a minimum principal amount of $10,000,000 (unless
otherwise agreed by Agent in its discretion) and integral multiples of $1,000,000 in excess of that amount; (b) except in the case of
an assignment in whole of a Lender’s rights and obligations, the aggregate amount of the Commitments retained by the transferor
Lender is at least $10,000,000 (unless otherwise agreed by Agent in its discretion); and (c) the parties to each such assignment shall
execute and deliver an Assignment to Agent for acceptance and recording. Nothing herein shall limit the right of a Lender to pledge or
assign any rights under the Loan Documents to secure obligations of such Lender, including a pledge or assignment to a Federal Reserve
Bank; provided, however, that no such pledge or assignment shall release the Lender from its obligations hereunder nor substitute
the pledge or assignee for such Lender as a party hereto.


 


13.3.2      
Effect; Effective Date. Upon delivery to Agent of an Assignment Notice and a processing fee of $3,500 (unless otherwise
agreed by Agent in its discretion), the assignment shall become effective as specified in the notice, if it complies with this Section
13.3. From such effective date, the Eligible Assignee shall for all purposes be a Lender under the Loan Documents, and shall have
all rights and obligations of a Lender thereunder. Upon consummation of an assignment, the transferor Lender, Agent and Borrowers shall
make appropriate arrangements for issuance of replacement and/or new notes, if applicable. The transferee Lender shall comply with Section
5.10 and deliver, upon request, an administrative questionnaire satisfactory to Agent.


 


 






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13.3.3      
Certain Assignees. No assignment or participation may be made to an Obligor, Affiliate of an Obligor, Defaulting
Lender or natural person. Agent shall have no obligation to determine whether any assignment is permitted under the Loan Documents or
whether any assignment has been properly effectuated pursuant to this Agreement. Any assignment by a Defaulting Lender must be accompanied
by satisfaction of its outstanding obligations under the Loan Documents in a manner satisfactory to Agent, including payment by the Defaulting
Lender or Eligible Assignee of an amount sufficient upon distribution (through direct payment, purchases of participations or other methods
acceptable to Agent in its discretion) to satisfy all funding and payment liabilities of the Defaulting Lender. If any assignment by a
Defaulting Lender (by operation of law or otherwise) does not comply with the foregoing, the assignee shall be deemed a Defaulting Lender
for all purposes until compliance occurs.


 


13.3.4      
Register. Agent, acting as a non-fiduciary agent of Borrowers (solely for tax purposes), shall maintain (a) a copy
(or electronic equivalent) of each Assignment and Acceptance delivered to it, and (b) a register for recordation of the names, addresses
and Commitments of, and the Loans (including principal and stated interest) and LC Obligations owing to, each Lender. Entries in the register
shall be conclusive, absent manifest error, and Borrowers, Agent and Lenders shall treat each Person recorded in such register as a Lender
for all purposes under the Loan Documents, notwithstanding any notice or knowledge to the contrary; provided that failure to make
any such recordation, or any error in such recordation, shall not affect any Lender's commitments or any Borrower's or other Obligor's
Obligations in respect of any Loan or Letter of Credit. Agent may choose to show only one Borrower as the borrower in the register, without
any effect on the liability of any Obligor with respect to the Obligations. The register shall be available for inspection by Borrowers
or any Lender, from time to time upon reasonable notice. The Obligors hereby agree that Agent and the other Agent Indemnitees constitute
Indemnities pursuant to Section 14.2 in connection with this register and all of their respective actions and activities and failures
to act in connection therewith.


 


13.4           
Replacement of Certain Lenders. If a Lender (a) within the last 120 days failed to give its consent to
any amendment, waiver or action for which consent of all Lenders was required and Required Lenders consented, (b) is a Defaulting Lender,
or (c) within the last 120 days gave a notice under Section 3.5 or requested payment or compensation under Section 3.7
or 5.9 (and has not designated a different Lending Office pursuant to Section 3.8), then Agent or Borrower Agent may, upon
10 days notice to such Lender, require it to assign its rights and obligations under the Loan Documents to Eligible Assignee(s), pursuant
to appropriate Assignment(s), within 20 days after the notice. Agent is irrevocably appointed as attorney-in-fact to execute any such
Assignment if the Lender fails to execute it. Such Lender shall be entitled to receive, in cash, concurrently with such assignment, all
amounts owed to it under the Loan Documents through the date of assignment.


 


SECTION
14.      MISCELLANEOUS


 


14.1           
Consents, Amendments and Waivers.


 


14.1.1      
Amendment. No modification of any Loan Document, including any extension or amendment of a Loan Document or any waiver
of a Default or Event of Default, shall be effective without the prior written agreement of Agent (with the consent of Required Lenders)
and each Obligor party to such Loan Document; provided, however, that:


 


(a)               
(i) without the prior written consent of Agent, no modification shall alter any provision in a Loan Document that relates
to any rights, duties or discretion of Agent and (ii) without the prior written consent of Swingline Lender, no modification shall alter
any provision in the Loan Documents that relates to any rights, duties or discretion of Swingline Lender;


 


(b)               
without the prior written consent of each affected Lender, including a Defaulting Lender, no modification shall (i) increase
the Commitment of such Lender; (ii) reduce the amount of, or waive or delay payment of, any principal, interest or fees payable to such
Lender (except as provided in Section 4.2); (iii) extend the Revolver Termination Date or Term Loan Maturity Date applicable to
such Lender’s Obligations; or (iv) amend this clause (b); provided, however, that only the consent of Required
Lenders shall be necessary to amend the definition of "Default Rate" or to waive any obligation of the Borrowers to pay interest
at the Default Rate;


 


 


 






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(c)               
without the prior written consent of Issuing Bank, no modification shall alter Section 2.3 or any other provision
in a Loan Document that relates to Letters of Credit or any rights, duties or discretion of Issuing Bank;


 


(d)               
without the prior written consent of Super-Majority Lenders (except any Defaulting Lender), no modification shall (i) alter
Section 5.6.2, 7.1 (except to add Collateral) or 14.1.1; (ii) amend the definition of Borrowing Base, Accounts Formula Amount
or Inventory Formula Amount (or any defined term used in such definitions) if the effect of such amendment is to increase borrowing availability,
Pro Rata or Required Lenders or Super-Majority Lenders; (iii) release all or substantially all Collateral; or (iv) except in connection
with a merger, disposition or similar transaction expressly permitted hereby, release any Obligor from liability for any Obligations;


 


(e)               
without the prior written consent of all Lenders (except any Defaulting Lenders) no modification shall consensually subordinate
the Liens of Agent on the Collateral or consensually subordinate the Obligations to other Debt (except in accordance with this Agreement
as in effect on the date hereof or in accordance with financing to one or more Obligors pursuant to Section 364 of the Bankruptcy Code
or any similar Insolvency Proceeding);


 


(f)                
without the prior written consent of all Lenders, no modification shall alter the first sentence of Section 13.3.1
hereof; and


 


(g)               
without the prior written consent of a Secured Bank Product Provider, no modification shall affect its relative payment
priority under Section 5.6.2.


 


14.1.2      
Limitations. The agreement of Obligors shall not be required for any modification of a Loan Document that deals solely
with the rights and duties of Lenders, Agent and/or Issuing Bank as among themselves. Only the consent of the parties to any agreement
relating to fees or a Bank Product shall be required for modification of such agreement, and no Bank Product provider (in such capacity)
shall have any right to consent to modification of any Loan Document other than its Bank Product agreement. Any waiver or consent granted
by Agent or Lenders hereunder shall be effective only if in writing and only for the matter specified.


 


14.1.3      
Payment for Consents. No Obligor will, directly or indirectly, pay any remuneration or other thing of value, whether
by way of additional interest, fee or otherwise, to any Lender (in its capacity as a Lender hereunder) as consideration for agreement
by such Lender with any modification of any Loan Documents, unless such remuneration or value is concurrently paid, on the same terms,
on a Pro Rata basis to all Lenders providing their consent.


 


14.2           
Indemnity. EACH OBLIGOR SHALL INDEMNIFY AND HOLD HARMLESS THE INDEMNITEES AGAINST ANY CLAIMS THAT
MAY BE INCURRED BY OR ASSERTED AGAINST ANY INDEMNITEE, INCLUDING CLAIMS ASSERTED BY ANY OBLIGOR OR OTHER PERSON OR ARISING FROM THE NEGLIGENCE
OF AN INDEMNITEE. In no event shall any party to a Loan Document have any obligation thereunder to indemnify or hold harmless an Indemnitee
with respect to a Claim that is determined in a final, non-appealable judgment by a court of competent jurisdiction to result from the
gross negligence or willful misconduct of such Indemnitee. Without limiting the generality of any provision of this Section 14.2,
to the fullest extent permitted by law, each Obligor hereby waives all rights for contribution or any other rights of recovery with respect
to liabilities, losses, damages, costs and expenses arising under or relating to Environmental Laws or any other Applicable Law that
it might have by statute or otherwise against any Indemnitee, except to the extent that such items are determined by a final and non-appealable
decision of a court of competent jurisdiction to have resulted primarily from the gross negligence or willful misconduct of such Indemnitee.
No Obligor shall, without the prior written consent of each applicable Indemnitee, effect any settlement of any pending or threatened
proceedings in respect of which indemnity could have been sought hereunder by such Indemnitee unless such settlement (a) includes an
unconditional release of such Indemnitee in form and substance satisfactory to such Indemnitee from all liability or claims that are
the subject matter of such proceedings and (b) does not include any statement as to or any admission of fault, culpability, wrong doing
or a failure to act by or on behalf of any Indemnitee. 


 


 


 






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14.3           
Notices and Communications.


 


14.3.1      
Notice Address. Subject to Section 14.3.2, all notices and other communications by or to a party hereto shall
be in writing and shall be given to any Obligor, at Borrower Agent’s address shown on the signature pages hereof, and to any other
Person at its address shown on the signature pages hereof (or, in the case of a Person who becomes a Lender after the Closing Date, at
the address shown on its Assignment), or at such other address as a party may hereafter specify by notice in accordance with this Section
14.3. Each communication shall be effective only (a) if given by facsimile transmission, when transmitted to the applicable facsimile
number, if confirmation of receipt is received; (b) if given by mail, three Business Days after deposit in the U.S. mail, with first-class
postage pre-paid, addressed to the applicable address; or (c) if given by personal delivery (including nationally recognized overnight
couriers such as Fed Ex and UPS), when duly delivered to the notice address with receipt acknowledged. Notwithstanding the foregoing,
no notice to Agent pursuant to Section 2.1.4, 3.1.2, 4.1.1 or 5.3.3 shall be effective until actually received by the individual
to whose attention at Agent such notice is required to be sent. Any written communication that is not sent in conformity with the foregoing
provisions shall nevertheless be effective on the date actually received by the noticed party. Any notice received by Borrower Agent shall
be deemed received by all Borrowers.


 


14.3.2      
Communications. Electronic and telephonic communications (including e-mail, messaging, voice mail and websites) may
be used only in a manner acceptable to Agent. Secured Parties make no assurance as to the privacy or security of electronic or telephonic
communications. Except where expressly provided in this Agreement or any other Loan Document, e-mail and voice mail shall not be effective
notices under the Loan Documents unless the sender shall have received an acknowledgement of such e-mail or voice mail by return e-mail,
telephone call or voice mail.


 


14.3.3      
Platform. Borrower Materials shall be delivered pursuant to procedures approved by Agent, including electronic delivery
(if possible) upon request by Agent to an electronic system maintained by Agent (“Platform”). Borrowers shall notify
Agent of each posting of Borrower Materials on the Platform and the materials shall be deemed received by Agent only upon its receipt
of such notice. Borrower Materials and other information relating to this credit facility may be made available to Secured Parties on
the Platform. The Platform is provided “as is” and “as available.” Agent does not warrant the accuracy or completeness
of any information on the Platform nor the adequacy or functioning of the Platform, and expressly disclaims liability for any errors or
omissions in the Borrower Materials or any issues involving the Platform. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING
ANY WARRANTY OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS, OR FREEDOM FROM VIRUSES OR
OTHER CODE DEFECTS, IS MADE BY AGENT WITH RESPECT TO BORROWER MATERIALS OR THE PLATFORM. No Agent Indemnitee shall have any liability
to Borrowers, Secured Parties or any other Person for losses, claims, damages, liabilities or expenses of any kind (whether in tort, contract
or otherwise) relating to use by any Person of the Platform, including any unintended recipient, nor for delivery of Borrower Materials
and other information via the Platform, internet, e-mail, or any other electronic platform or messaging system.


 


14.3.4      
Public Information. Obligors and Secured Parties acknowledge that “public” information may not be segregated
from material non-public information on the Platform. Secured Parties acknowledge that Borrower Materials may include Obligors’
material non-public information, and should not be made available to personnel who do not wish to receive such information or may be engaged
in investment or other market-related activities with respect to an Obligor’s securities.


 


14.3.5      
Non-Conforming Communications. Agent and Lenders may rely upon any communications purportedly given by or on behalf
of any Obligor even if they were not made in a manner specified herein, were incomplete or were not confirmed, or if the terms thereof,
as understood by the recipient, varied from a later confirmation. Each Obligor shall indemnify and hold harmless each Indemnitee from
any liabilities, losses, costs and expenses arising from any electronic or telephonic communication purportedly given by or on behalf
of an Obligor.


 


14.4           
Performance of Obligors’ Obligations. Agent may, in its discretion at any time and from time to
time, at Borrowers’ expense, pay any amount or do any act required of an Obligor under any Loan Documents or otherwise lawfully
requested by Agent to (a) enforce any Loan Documents or collect any Obligations; (b) protect, insure, maintain or realize upon any Collateral;
or (c) defend or maintain the validity or priority of Agent’s Liens in any Collateral, including any payment of a judgment, insurance
premium, warehouse charge, finishing or processing charge, or landlord claim, or any discharge of a Lien. All payments, costs and expenses
(including Extraordinary Expenses) of Agent under this Section shall be reimbursed to Agent by Borrowers, on demand, with interest
from the date incurred until paid in full, at the Default Rate applicable to Base Rate Revolver Loans. Any payment made or action taken
by Agent under this Section shall be without prejudice to any right to assert an Event of Default or to exercise any other rights or
remedies under the Loan Documents.


 


 


 






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14.5           
Credit Inquiries. Agent and Lenders may (but shall have no obligation) to respond to usual and customary
credit inquiries from third parties concerning any Obligor or Subsidiary.


 


14.6           
Severability. Wherever possible, each provision of the Loan Documents shall be interpreted in such manner
as to be valid under Applicable Law. If any provision is found to be invalid under Applicable Law, it shall be ineffective only to the
extent of such invalidity and the remaining provisions of the Loan Documents shall remain in full force and effect.


 


14.7           
Cumulative Effect; Conflict of Terms. The provisions of the Loan Documents are cumulative. The parties
acknowledge that the Loan Documents may use several limitations or measurements to regulate similar matters, and they agree that these
are cumulative and that each must be performed as provided. Except as otherwise provided in another Loan Document (by specific reference
to the applicable provision of this Agreement), if any provision contained herein is in direct conflict with any provision in another
Loan Document, the provision herein shall govern and control.


 


14.8           
Counterparts; Execution. Any Loan Document may be executed in counterparts, each of which shall constitute
an original, but all of which when taken together shall constitute a single contract. This Agreement shall become effective when Agent
has received counterparts bearing the signatures of all parties hereto. Agent may (but shall have no obligation to) accept any signature,
contract formation or record-keeping through electronic means, which shall have the same legal validity and enforceability as manual
or paper-based methods, to the fullest extent permitted by Applicable Law, including the Federal Electronic Signatures in Global and
National Commerce Act, the New York State Electronic Signatures and Records Act, or any similar state law based on the Uniform Electronic
Transactions Act. Upon request by Agent, any electronic signature or delivery shall be promptly followed by a manually executed or paper
document.


 


14.9           
Entire Agreement. Time is of the essence with respect to all Loan Documents and Obligations. The Loan
Documents constitute the entire agreement, and supersede all prior understandings and agreements, among the parties relating to the subject
matter thereof.


 


14.10       
Relationship with Lenders. The obligations of each Lender hereunder are several, and no Lender shall
be responsible for the obligations or Commitments of any other Lender. Amounts payable hereunder to each Lender shall be a separate and
independent debt. It shall not be necessary for Agent or any other Lender to be joined as an additional party in any proceeding for such
purposes. Nothing in this Agreement and no action of Agent, Lenders or any other Secured Party pursuant to the Loan Documents or otherwise
shall be deemed to constitute Agent and any Secured Party to be a partnership, joint venture or similar arrangement, nor to constitute
control of any Obligor.


 


14.11       
No Advisory or Fiduciary Responsibility. In connection with all aspects of each transaction contemplated
by any Loan Document, Obligors acknowledge and agree that (a)(i) this credit facility and any arranging or other services by Agent, any
Lender, any of their Affiliates or any arranger are arm’s-length commercial transactions between Obligors and their Affiliates,
on one hand, and Agent, any Lender, any of their Affiliates or any arranger, on the other hand; (ii) Obligors have consulted their own
legal, accounting, regulatory and tax advisors to the extent they have deemed appropriate; and (iii) Obligors are capable of evaluating,
and understand and accept, the terms, risks and conditions of the transactions contemplated by the Loan Documents; (b) each of Agent,
Lenders, their Affiliates and any arranger is and has been acting solely as a principal and, except as expressly agreed in writing by
the relevant parties, has not been, is not, and will not be acting as an advisor, agent or fiduciary for Obligors, their Affiliates or
any other Person, and has no obligation with respect to the transactions contemplated by the Loan Documents except as expressly set forth
therein; and (c) Agent, Lenders, their Affiliates and any arranger may be engaged in a broad range of transactions that involve interests
that differ from those of Obligors and their Affiliates, and have no obligation to disclose any of such interests to Obligors or their
Affiliates. To the fullest extent permitted by Applicable Law, each Obligor hereby waives and releases any claims that it may have against
Agent, Lenders, their Affiliates and any arranger with respect to any breach of agency or fiduciary duty in connection with any transaction
contemplated by a Loan Document.


 


 


 






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14.12       
Confidentiality. Each of Agent, Lenders and Issuing Bank shall maintain the confidentiality of
all Information (as defined below), except that Information may be disclosed (a) to its Affiliates and Approved Funds, and to its and
their partners, directors, officers, employees, agents, advisors and representatives (provided they are informed of the confidential
nature of the Information and instructed to keep it confidential); (b) to the extent requested by any governmental, regulatory or self-regulatory
authority purporting to have jurisdiction over it or its Affiliates and Approved Funds; (c) to the extent required by Applicable Law
or by any subpoena or other legal process; (d) to any other party hereto; (e) in connection with the exercise of remedies hereunder or
under any other Loan Document or any action or proceeding relating to any Loan Documents or Obligations; (f) subject to an agreement
containing provisions substantially the same as this Section, to any Transferee or any actual or prospective party (or its advisors)
to any Bank Product or to any swap, derivative or other transaction under which payments are to be made by reference to an Obligor or
Obligor’s obligations; (g) to the extent such Information (i) becomes publicly available other than as a result of a breach of
this Section or (ii) is available to Agent, Issuing Bank, any Lender or any of their Affiliates on a nonconfidential basis from a source
other than Obligors; (h) on a confidential basis to a provider of a Platform; or (i) with the consent of Borrower Agent. Notwithstanding
the foregoing, Agent and Lenders may publish or disseminate general information concerning this credit facility for league table, tombstone
and advertising purposes, and may use Borrowers’ logos, trademarks or product photographs in advertising materials. As used herein,
“Information” means information received from an Obligor or Subsidiary relating to it or its business that is identified
as confidential when delivered. A Person required to maintain the confidentiality of Information pursuant to this Section shall be deemed
to have complied if it exercises a degree of care similar to that accorded its own confidential information. Each of Agent, Issuing Bank
and Lenders acknowledges that (i) Information may include material non-public information; (ii) it has developed compliance procedures
regarding the use of such information; and (iii) it will handle the material non-public information in accordance with Applicable Law.


 


14.13       
GOVERNING LAW. UNLESS EXPRESSLY PROVIDED IN ANY LOAN DOCUMENT, THIS AGREEMENT, THE OTHER LOAN
DOCUMENTS AND ALL CLAIMS SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICT OF LAW PRINCIPLES
EXCEPT FEDERAL LAWS RELATING TO NATIONAL BANKS.


 


14.14       
Consent To Forum.


 


14.14.1  
Forum. EACH OBLIGOR HEREBY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE COURT SITTING IN NEW YORK
COUNTY, NEW YORK, OR THE UNITED STATES DISTRICT COURT OF THE SOUTHERN DISTRICT OF NEW YORK, IN ANY DISPUTE, ACTION, LITIGATION OR OTHER
PROCEEDING RELATING IN ANY WAY TO ANY LOAN DOCUMENTS, AND AGREES THAT ANY DISPUTE, ACTION, LITIGATION OR OTHER PROCEEDING SHALL BE BROUGHT
BY IT SOLELY IN ANY SUCH COURT. EACH OBLIGOR IRREVOCABLY AND UNCONDITIONALLY WAIVES ALL CLAIMS, OBJECTIONS AND DEFENSES THAT IT MAY HAVE
REGARDING ANY SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT FORUM. EACH PARTY HERETO IRREVOCABLY
AND UNCONDITIONALLY SUBMITS TO THE JURISDICTION OF SUCH COURTS AND CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES
IN SECTION 14.3.1. A final judgment in any proceeding of any such court shall be conclusive and may be enforced in other jurisdictions
by suit on the judgment or any other manner provided by Applicable Law.


 


14.14.2  
Other Jurisdictions. Nothing herein shall limit the right of Agent or any Lender to bring proceedings against any
Obligor in any other court, nor limit the right of any party to serve process in any other manner permitted by Applicable Law. Nothing
in this Agreement shall be deemed to preclude enforcement by Agent of any judgment or order obtained in any forum or jurisdiction.


 


14.14.3  
[Reserved].


 


 


 


 






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14.15       
Waivers by Obligors. To the fullest extent permitted by Applicable Law, each Obligor waives (a) the right
to trial by jury (which Agent, Issuing Bank and each Lender hereby also waive) in any proceeding or dispute of any kind relating in any
way to any Loan Documents, Obligations or Collateral; (b) presentment, demand, protest, notice of presentment, notice of intent to accelerate,
notice of acceleration, default, non-payment, maturity, release, compromise, settlement, extension or renewal of any commercial paper,
accounts, documents, instruments, chattel paper and guaranties at any time held by Agent on which an Obligor may in any way be liable,
and hereby ratifies anything Agent may do in this regard; (c) notice prior to taking possession or control of any Collateral; (d) any
bond or security that might be required by a court prior to allowing Agent to exercise any rights or remedies; (e) the benefit of all
valuation, appraisement and exemption laws; (f) any claim against Agent, Issuing Bank or any Lender, on any theory of liability, for
special, indirect, consequential, exemplary or punitive damages (as opposed to direct or actual damages) in any way relating to any Enforcement
Action, Obligations, Loan Documents or transactions relating thereto; and (g) notice of acceptance hereof. Each Obligor acknowledges
that the foregoing waivers are a material inducement to Agent, Issuing Bank and Lenders entering into this Agreement and that they are
relying upon the foregoing in their dealings with Obligors. Each Obligor has reviewed the foregoing waivers with its legal counsel and
has knowingly and voluntarily waived its jury trial and other rights following consultation with legal counsel. In the event of litigation,
this Agreement may be filed as a written consent to a trial by the court.


 


14.16       
Patriot Act Notice. Agent and Lenders hereby notify Obligors that pursuant to the Patriot Act,
Agent and Lenders are required to obtain, verify and record information that identifies each Obligor, including its legal name, address,
tax ID number and other information that will allow Agent and Lenders to identify it in accordance with the Patriot Act. Agent and Lenders
will also require information regarding any personal guarantor and may require information regarding Obligors’ management and owners,
such as legal name, address, social security number and date of birth. Obligors shall, promptly upon request, provide all documentation
and other information as Agent, Issuing Bank or any Lender may request from time to time in order to comply with any obligations under
any “know your customer,” anti-money laundering or other requirements of Applicable Law.


 


14.17       
NO ORAL AGREEMENT. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT BETWEEN THE
PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS BETWEEN THE PARTIES. THERE ARE
NO UNWRITTEN AGREEMENTS BETWEEN THE PARTIES.


 


SECTION
15.      GUARANTY


 


15.1           
Guaranty of the Obligations. Subject to the provisions of Section 15.2, Guarantors jointly
and severally hereby irrevocably and unconditionally guaranty to Agent and Lenders the due and punctual payment in full of all Obligations
(other than Excluded Swap Obligations) when the same shall become due, whether at stated maturity, by required prepayment, declaration,
acceleration, demand or otherwise (including amounts that would become due but for the operation of the automatic stay under Section
362(a) of the Bankruptcy Code) (collectively, the “Guaranteed Obligations”).


 


15.2           
Contribution by Guarantors. All Guarantors desire to allocate among themselves (collectively,
the “Contributing Guarantors”), in a fair and equitable manner, their obligations arising under this Guaranty. Accordingly,
in the event any payment or distribution is made on any date by a Guarantor (a “Funding Guarantor”) under this Guaranty
such that its Aggregate Payments exceeds its Fair Share as of such date, such Funding Guarantor shall be entitled to a contribution from
each of the other Contributing Guarantors in an amount sufficient to cause each Contributing Guarantor’s Aggregate Payments to
equal its Fair Share as of such date. “Fair Share” means, with respect to a Contributing Guarantor as of any date
of determination, an amount equal to (a) the ratio of (i) the Fair Share Contribution Amount with respect to such Contributing Guarantor,
to (ii) the aggregate of the Fair Share Contribution Amounts with respect to all Contributing Guarantors multiplied by, (b) the aggregate
amount paid or distributed on or before such date by all Funding Guarantors under this Guaranty in respect of the obligations Guaranteed.
“Fair Share Contribution Amount” means, with respect to a Contributing Guarantor as of any date of determination,
the maximum aggregate amount of the obligations of such Contributing Guarantor under this Guaranty that would not render its obligations
hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548 of Title 11 of the United States Code or any
comparable applicable provisions of state law; provided, solely for purposes of calculating the “Fair Share Contribution Amount”
with respect to any Contributing Guarantor for purposes of this Section 15.2, any assets or liabilities of such Contributing Guarantor
arising by virtue of any rights to subrogation, reimbursement or indemnification or any rights to or obligations of contribution hereunder
shall not be considered as assets or liabilities of such Contributing Guarantor. “Aggregate Payments” means, with
respect to a Contributing Guarantor as of any date of determination, an amount equal to (1) the aggregate amount of all payments and
distributions made on or before such date by such Contributing Guarantor in respect of this Guaranty (including, without limitation,
in respect of this Section 15.2), minus (2) the aggregate amount of all payments received on or before such date by such Contributing
Guarantor from the other Contributing Guarantors as contributions under this Section 15.2. The amounts payable as contributions
hereunder shall be determined as of the date on which the related payment or distribution is made by the applicable Funding Guarantor.
The allocation among Contributing Guarantors of their obligations as set forth in this Section 15.2 shall not be construed in
any way to limit the liability of any Contributing Guarantor hereunder. Each Guarantor is a third-party beneficiary to the contribution
agreement set forth in this Section 15.2.


 


 






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15.3           
Payment by Guarantors. Subject to Section 15.2, Guarantors hereby jointly and severally
agree, in furtherance of the foregoing and not in limitation of any other right which Agent or any Lender may have at law or in equity
against any Guarantor by virtue hereof, that upon the failure of any Borrower to pay any of the Guaranteed Obligations when and as the
same shall become due, whether at stated maturity, by required prepayment, declaration, acceleration, demand or otherwise (including
amounts that would become due but for the operation of the automatic stay under Section 362(a) of the Bankruptcy Code), Guarantors will
upon demand pay, or cause to be paid, in cash, to Agent, for the benefit of itself and the Lenders, an amount equal to the sum of the
unpaid principal amount of all Guaranteed Obligations then due as aforesaid, accrued and unpaid interest on such Guaranteed Obligations
(including interest which, but for any Borrower’s becoming the subject of a case under the Bankruptcy Code, would have accrued
on such Guaranteed Obligations, whether or not a claim is allowed against such Borrower for such interest in the related bankruptcy case)
and all other Guaranteed Obligations then owed to Agent and Lenders as aforesaid.


 


15.4           
Liability of Guarantors Absolute. Each Guarantor agrees that its obligations hereunder are irrevocable,
absolute, independent and unconditional and shall not be affected by any circumstance which constitutes a legal or equitable discharge
of a guarantor or surety other than payment in full of the Guaranteed Obligations. In furtherance of the foregoing and without limiting
the generality thereof, each Guarantor agrees as follows:


 


(a)               
this Guaranty is a guaranty of payment when due and not of collectability. This Guaranty is a primary obligation of each
Guarantor and not merely a contract of surety;


 


(b)               
Agent may enforce this Guaranty upon the occurrence of an Event of Default notwithstanding the existence of any dispute
between any Borrower and Agent or any Lender with respect to the existence of such Event of Default;


 


(c)               
the obligations of each Guarantor hereunder are independent of the obligations of Borrowers and the obligations of any other
guarantor (including any other Guarantor) of the obligations of Borrowers, and a separate action or actions may be brought and prosecuted
against such Guarantor whether or not any action is brought against any Borrower or any of such other guarantors and whether or not any
Borrower is joined in any such action or actions;


 


(d)               
payment by any Guarantor of a portion, but not all, of the Guaranteed Obligations shall in no way limit, affect, modify
or abridge any Guarantor’s liability for any portion of the Guaranteed Obligations which has not been paid. Without limiting the
generality of the foregoing, if Agent or any Lender is awarded a judgment in any suit brought to enforce any Guarantor’s covenant
to pay a portion of the Guaranteed Obligations, such judgment shall not be deemed to release such Guarantor from its covenant to pay the
portion of the Guaranteed Obligations that is not the subject of such suit, and such judgment shall not, except to the extent satisfied
by such Guarantor, limit, affect, modify or abridge any other Guarantor’s liability hereunder in respect of the Guaranteed Obligations;


 


(e)               
Agent and/or Lenders, upon such terms as they deem appropriate, without notice or demand and without affecting the validity
or enforceability hereof or giving rise to any reduction, limitation, impairment, discharge or termination of any Guarantor’s liability
hereunder, from time to time may (i) renew, extend, accelerate, increase the rate of interest on, or otherwise change the time, place,
manner or terms of payment of the Guaranteed Obligations; (ii) settle, compromise, release or discharge, or accept or refuse any offer
of performance with respect to, or substitutions for, the Guaranteed Obligations or any agreement relating thereto and/or subordinate
the payment of the same to the payment of any other obligations; (iii) request and accept other guaranties of the Guaranteed Obligations
and take and hold security for the payment hereof or the Guaranteed Obligations; (iv) release, surrender, exchange, substitute, compromise,
settle, rescind, waive, alter, subordinate or modify, with or without consideration, any security for payment of the Guaranteed Obligations,
any other guaranties of the Guaranteed Obligations, or any other obligation of any Person (including any other Guarantor) with respect
to the Guaranteed Obligations; (v) enforce and apply any security now or hereafter held by or for the benefit of Agent for the benefit
of itself and the Lenders in respect hereof or the Guaranteed Obligations and direct the order or manner of sale thereof, or exercise
any other right or remedy that Agent may have against any such security, in each case as Agent in its discretion may determine consistent
herewith or any applicable security agreement, including foreclosure on any such security pursuant to one or more judicial or nonjudicial
sales, whether or not every aspect of any such sale is commercially reasonable, and even though such action operates to impair or extinguish
any right of reimbursement or subrogation or other right or remedy of any Guarantor against any Borrower or any security for the Guaranteed
Obligations; and (vi) exercise any other rights available to it under the Loan Documents; and


 


 


 






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(f)                
this Guaranty and the obligations of Guarantors hereunder shall be valid and enforceable and shall not be subject to any
reduction, limitation, impairment, discharge or termination for any reason (other than payment in full of the Guaranteed Obligations),
including the occurrence of any of the following, whether or not any Guarantor shall have had notice or knowledge of any of them: (i)
any failure or omission to assert or enforce or agreement or election not to assert or enforce, or the stay or enjoining, by order of
court, by operation of law or otherwise, of the exercise or enforcement of, any claim or demand or any right, power or remedy (whether
arising under the Loan Documents, at law, in equity or otherwise) with respect to the Guaranteed Obligations or any agreement relating
thereto, or with respect to any other guaranty of or security for the payment of the Guaranteed Obligations; (ii) any rescission, waiver,
amendment or modification of, or any consent to departure from, any of the terms or provisions (including provisions relating to events
of default) hereof, any of the other Loan Documents or any agreement or instrument executed pursuant thereto, or of any other guaranty
or security for the Guaranteed Obligations, in each case whether or not in accordance with the terms hereof or such Loan Document, or
any agreement relating to such other guaranty or security; (iii) the Guaranteed Obligations, or any agreement relating thereto, at any
time being found to be illegal, invalid or unenforceable in any respect; (iv) the application of payments received from any source (other
than payments received pursuant to the other Loan Documents or from the proceeds of any security for the Guaranteed Obligations, except
to the extent such security also serves as collateral for indebtedness other than the Guaranteed Obligations) to the payment of indebtedness
other than the Guaranteed Obligations, even though Agent or Lenders might have elected to apply such payment to any part or all of the
Guaranteed Obligations; (v) Agent’s or Lenders’ consent to the change, reorganization or termination of the corporate structure
or existence of any Borrower or any of its Subsidiaries and to any corresponding restructuring of the Guaranteed Obligations; (vi) any
failure to perfect or continue perfection of a security interest in any collateral which secures any of the Guaranteed Obligations; (vii)
any defenses, set-offs or counterclaims which any Borrower may allege or assert against Agent or any Lender in respect of the Guaranteed
Obligations, including failure of consideration, breach of warranty, payment, statute of frauds, statute of limitations, accord and satisfaction
and usury; and (viii) any other act or thing or omission, or delay to do any other act or thing, which may or might in any manner or to
any extent vary the risk of any Guarantor as an Obligor in respect of the Guaranteed Obligations.


 


15.5           
Waivers by Guarantors. Each Guarantor hereby waives, for the benefit of Agent and each Lender:
(a) any right to require Agent or any Lender, as a condition of payment or performance by such Guarantor, to (i) proceed against any
Borrower, any other guarantor (including any other Guarantor) of the Guaranteed Obligations or any other Person, (ii) proceed against
or exhaust any security held from any Borrower, any such other guarantor or any other Person, (iii) proceed against or have resort to
any balance of any Deposit Account, securities account or commodities account or credit on the books of Agent or any Lender in favor
of any Borrower or any other Person, or (iv) pursue any other remedy in the power of Agent or any Lender whatsoever; (b) any defense
arising by reason of the incapacity, lack of authority or any disability or other defense of any Borrower or any other Guarantor including
any defense based on or arising out of the lack of validity or the unenforceability of the Guaranteed Obligations or any agreement or
instrument relating thereto or by reason of the cessation of the liability of any Borrower or any other Guarantor from any cause other
than payment in full of the Guaranteed Obligations; (c) any defense based upon any statute or rule of law which provides that the obligation
of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal; (d) any defense based
upon Agent’s or any Lender’s errors or omissions in the administration of the Guaranteed Obligations; (e) (i) any principles
or provisions of law, statutory or otherwise, which are or might be in conflict with the terms hereof and any legal or equitable discharge
of such Guarantor’s obligations hereunder, (ii) the benefit of any statute of limitations affecting such Guarantor’s liability
hereunder or the enforcement hereof, (iii) any rights to set-offs, recoupments and counterclaims, and (iv) promptness, diligence and
any requirement that Agent or any Lender protect, secure, perfect or insure any security interest or lien or any property subject thereto;
(f) notices, demands, presentments, protests, notices of protest, notices of dishonor and notices of any action or inaction, including
acceptance hereof, notices of default hereunder or any agreement or instrument related thereto, notices of any renewal, extension or
modification of the Guaranteed Obligations or any agreement related thereto, notices of any extension of credit to Borrowers and notices
of any of the matters referred to in Section 15.4 and any right to consent to any thereof; and (g) any defenses or benefits that
may be derived from or afforded by law which limit the liability of or exonerate guarantors or sureties, or which may conflict with the
terms hereof.


 


 


 






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15.6           
Guarantors’ Rights of Subrogation, Contribution, etc. Until the Guaranteed Obligations shall have
been indefeasibly paid in full and the Revolver Commitment shall have terminated and all Letters of Credit shall have expired or been
cancelled, each Guarantor hereby waives any claim, right or remedy, direct or indirect, that such Guarantor now has or may hereafter
have against any Borrower or any other Guarantor or any of its assets in connection with this Guaranty or the performance by such Guarantor
of its obligations hereunder, in each case whether such claim, right or remedy arises in equity, under contract, by statute, under common
law or otherwise and including without limitation (a) any right of subrogation, reimbursement or indemnification that such Guarantor
now has or may hereafter have against any Borrower with respect to the Guaranteed Obligations, (b) any right to enforce, or to participate
in, any claim, right or remedy that Agent or any Lender now has or may hereafter have against any Borrower, and (c) any benefit of, and
any right to participate in, any collateral or security now or hereafter held by Agent or any Lender. In addition, until the Guaranteed
Obligations shall have been indefeasibly paid in full and the Revolver Commitment shall have terminated and all Letters of Credit shall
have expired or been cancelled, each Guarantor shall withhold exercise of any right of contribution such Guarantor may have against any
other guarantor (including any other Guarantor) of the Guaranteed Obligations, including, without limitation, any such right of contribution
as contemplated by Section 15.2. Each Guarantor further agrees that, to the extent the waiver or agreement to withhold the exercise
of its rights of subrogation, reimbursement, indemnification and contribution as set forth herein is found by a court of competent jurisdiction
to be void or voidable for any reason, any rights of subrogation, reimbursement or indemnification such Guarantor may have against any
Borrower or against any collateral or security, and any rights of contribution such Guarantor may have against any such other guarantor,
shall be junior and subordinate to any rights Agent or any Lender may have against any Borrower, to all right, title and interest Agent
or Lender may have in any such collateral or security, and to any right Agent or any Lender may have against such other guarantor. If
any amount shall be paid to any Guarantor on account of any such subrogation, reimbursement, indemnification or contribution rights at
any time when all Guaranteed Obligations shall not have been finally and indefeasibly paid in full, such amount shall be held in trust
for Agent and Lenders and shall forthwith be paid over to Agent to be credited and applied against the Guaranteed Obligations, whether
matured or unmatured, in accordance with the terms hereof.


 


15.7           
Subordination of Other Obligations. Any indebtedness of any Borrower or any Guarantor now or hereafter
held by any Guarantor (the “Obligee Guarantor”) is hereby subordinated in right of payment to the Guaranteed Obligations,
and any such indebtedness collected or received by the Obligee Guarantor after an Event of Default has occurred and is continuing shall
be held in trust for Agent and Lenders and shall forthwith be paid over to Agent to be credited and applied against the Guaranteed Obligations
but without affecting, impairing or limiting in any manner the liability of the Obligee Guarantor under any other provision hereof.


 


15.8           
Continuing Guaranty. This Guaranty is a continuing guaranty and shall remain in effect until all
of the Guaranteed Obligations shall have been indefeasibly paid in full and the Revolver Commitment shall have terminated and all Letters
of Credit shall have expired or been cancelled. Each Guarantor hereby irrevocably waives any right to revoke this Guaranty as to future
transactions giving rise to any Guaranteed Obligations.


 


15.9           
Authority of Guarantors or Borrowers. It is not necessary for Agent or any Lender to inquire into
the capacity or powers of any Guarantor or any Borrower or the officers, directors or any agents acting or purporting to act on behalf
of any of them.


 


15.10       
Financial Condition of Borrowers. Any Loan may be made to Borrowers or continued from time to
time, without notice to or authorization from any Guarantor regardless of the financial or other condition of Borrowers at the time of
any such grant or continuation. Neither Agent nor any Lender shall have any obligation to disclose or discuss with any Guarantor its
assessment, or any Guarantor’s assessment, of the financial condition of any Borrower. Each Guarantor has adequate means to obtain
information from each Borrower on a continuing basis concerning the financial condition of such Borrower and its ability to perform its
obligations under the Loan Documents, and each Guarantor assumes the responsibility for being and keeping informed of the financial condition
of Borrowers and of all circumstances bearing upon the risk of nonpayment of the Guaranteed Obligations. Each Guarantor hereby waives
and relinquishes any duty on the part of Agent or any Lender to disclose any matter, fact or thing relating to the business, operations
or conditions of any Borrower now known or hereafter known by Agent or any Lender.


 


 


 


 






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15.11       
Bankruptcy, etc. So long as any Guaranteed Obligations remain outstanding, no Guarantor shall, without
the prior written consent of Agent, commence or join with any other Person in commencing any bankruptcy, reorganization or insolvency
case or proceeding of or against any Borrower or any other Guarantor.


 


(a)               
The obligations of Guarantors hereunder shall not be reduced, limited, impaired, discharged, deferred, suspended or terminated
by any case or proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or
arrangement of any Borrower or any other Guarantor or by any defense which any Borrower or any other Guarantor may have by reason of the
order, decree or decision of any court or administrative body resulting from any such proceeding.


 


(b)               
Each Guarantor acknowledges and agrees that any interest on any portion of the Guaranteed Obligations which accrues after
the commencement of any case or proceeding referred to in Section 15.11(a) above (or, if interest on any portion of the Guaranteed
Obligations ceases to accrue by operation of law by reason of the commencement of such case or proceeding, such interest as would have
accrued on such portion of the Guaranteed Obligations if such case or proceeding had not been commenced) shall be included in the Guaranteed
Obligations because it is the intention of Guarantors and Agent and Lenders that the Guaranteed Obligations which are guaranteed by Guarantors
pursuant hereto should be determined without regard to any rule of law or order which may relieve any Borrower of any portion of such
Guaranteed Obligations. Guarantors will permit any trustee in bankruptcy, receiver, debtor in possession, assignee for the benefit of
creditors or similar person to pay Agent and Lenders, or allow the claim of Agent and Lenders in respect of, any such interest accruing
after the date on which such case or proceeding is commenced.


 


(c)               
In the event that all or any portion of the Guaranteed Obligations are paid by any Borrower, the obligations of Guarantors
hereunder shall continue and remain in full force and effect or be reinstated, as the case may be, in the event that all or any part of
such payment(s) are rescinded or recovered directly or indirectly from Agent or any Lender as a preference, fraudulent transfer or otherwise,
and any such payments which are so rescinded or recovered shall constitute Guaranteed Obligations for all purposes hereunder.


 


SECTION
16.      ACKNOWLEDGEMENTS.


 


16.1.         
Acknowledgment and Consent to Bail-In of Affected Financial Institutions(a). Notwithstanding anything to the contrary
in any Loan Document or in any other agreement, arrangement or understanding among any such parties, each party hereto acknowledges that
any liability of any Affected Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be
subject to the write-down and conversion powers of the applicable Resolution Authority and agrees and consents to, and acknowledges and
agrees to be bound by:


 


(a)               
the application of any Write-Down and Conversion Powers by the applicable Resolution Authority to any such liabilities arising
hereunder which may be payable to it by any party hereto that is an Affected Financial Institution; and


 


(b)               
the effects of any Bail-in Action on any such liability, including, if applicable:


 


(i)                
a reduction in full or in part or cancellation of any such liability;


 


(ii)              
a conversion of all, or a portion of, such liability into shares or other instruments of ownership in such Affected Financial Institution,
its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments
of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document;
or


 


(iii)             
the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of the applicable
Resolution Authority.


 


 


 






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16.2.         
Acknowledgement Regarding Any Supported QFCs. To the extent that the Loan Documents provide
support, through a guarantee or otherwise, for any agreement governing Swap Obligations or any other agreement or instrument that is a
QFC (such support, "QFC Credit Support" and each such QFC, a "Supported QFC"), the parties acknowledge
and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance
Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder,
the "U.S. Special Resolution Regimes") in respect of such Supported QFC and QFC Credit Support (with the provisions below
applicable notwithstanding that the Loan Documents and any Supported QFC may in fact be stated to be governed by the laws of the State
of New York and/or of the U.S. or any other state of the U.S.).


 


In the event a Covered Entity
that is party to a Supported QFC (each, a "Covered Party") becomes subject to a proceeding under a U.S. Special Resolution
Regime, the transfer of such Supported QFC and the benefit of such QFC Credit Support (and any interest and obligation in or under such
Supported QFC and such QFC Credit Support, and any rights in property securing such Supported QFC or such QFC Credit Support) from such
Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the
Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the
U.S. or a state of the U.S. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under
a U.S. Special Resolution Regime, Default Rights under the Loan Documents that might otherwise apply to such Supported QFC or any QFC
Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights
could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the Loan Documents were governed by the laws of the
U.S. or a state of the U.S. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with
respect to a Defaulting Lender shall in no event affect the rights of any Covered Party with respect to a Supported QFC or any QFC Credit
Support.


 


 


 


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signatures begin on following page]


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






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IN WITNESS WHEREOF,
this Agreement has been executed and delivered as of the date set forth above.


 


	 	BORROWERS:
	 	 
	 	APPLIED OPTOELECTRONICS, INC., a Delaware corporation
	 	 
	 	 
	 	By:	 	 
	 	Name:	 
	 	Title:	 
	 	Address:	 
	 	 	13139 Jess Pirtle Blvd
	 	 	 	Sugar Land, TX 77478
	 	 	 	Attn: Stefan J. Murry, Ph.D.,
    CFO and Chief Strategy Officer
	 	 	 	Email: smurry@ao-inc.com


 


 


 


 


 


 


[Signature Page to Loan, Security and Guarantee
Agreement]






    	 	92	 



     


    

 





	 	AGENT AND LENDERS:
	 	 
	 	CIT NORTHBRIDGE CREDIT LLC,
	 	as Agent
	 	 
	 	By: 	 	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 
	 	Address:	 	 	 
	 	 	CIT Northbridge Credit LLC
	 	 	 	11 West 42nd Street, 13th Floor
	 	 	 	New York, New York 10036
	 	 	 	Attn:	 	  
	 	 	 	Telecopy:	  



 





	 	CIT NORTHBRIDGE FUNDING II LLC,
	 	as a Lender
	 	 
	 	By: 	 	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 
	 	Address:	 	 	 
	 	 	CIT Northbridge Credit LLC
	 	 	 	11 West 42nd Street, 13th Floor
	 	 	 	New York, New York 10036
	 	 	 	Attn:	 	  
	 	 	 	Telecopy:	  



 

















	 	 	 	 	 	,
	 	as a Lender
	 	 
	 	By: 	 	 	 	 
	 	Name:	 	 	 
	 	Title:	 	 	 
	 	Address:	 	 	 
	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	Attn:	 	  
	 	 	 	Telecopy: 	   



 










 


 




[Signature Page to Loan, Security and Guarantee
Agreement]



    	 	93	 



     


    

 


ExhibIT
A-1


to


Loan, Security and Guarantee Agreement


 


 


ASSIGNMENT AND ACCEPTANCE


 


Reference is made to the Loan,
Security and Guarantee Agreement dated as of November 16, 2022, as amended (“Loan Agreement”), among APPLIED OPTOELECTRONICS,
INC., a Delaware corporation (“AOI”, and together with any other Person from time to time designated as a borrower
thereunder, collectively, the “Borrowers” and each, individually, a “Borrower”), the other Obligors
from time to time party thereto, the financial institutions party to the Loan Agreement from time to time as Lenders, and CIT NORTHBRIDGE
CREDIT LLC, a Delaware limited liability company (“CNC”), as agent for the Secured Parties (in such capacity, “Agent”).
Terms are used herein as defined in the Loan Agreement.


 


______________________________________
(“Assignor”) and _________________________ _____________ (“Assignee”) agree as follows:


 


1.       Assignor
hereby assigns to Assignee and Assignee hereby purchases and assumes from Assignor (a) a principal amount of $________ of Assignor’s
outstanding Revolver Loans and (b) the amount of $__________ of Assignor’s Revolver Commitment (which represents ____% of the total
Revolver Commitments) (the foregoing items being, collectively, “Assigned Interest”), together with an interest in
the Loan Documents corresponding to the Assigned Interest. This Agreement shall be effective as of the date (“Effective Date”)
indicated in the corresponding Assignment Notice delivered to Agent, provided such Assignment Notice is executed by Assignor, Assignee,
Agent and Borrower Agent, if applicable. From and after the Effective Date, Assignee hereby expressly assumes, and undertakes to perform,
all of Assignor’s obligations in respect of the Assigned Interest, and all principal, interest, fees and other amounts which would
otherwise be payable to or for Assignor’s account in respect of the Assigned Interest shall be payable to or for Assignee’s
account, to the extent such amounts accrue on or after the Effective Date.


 


2.       Assignor
(a) represents that as of the date hereof, prior to giving effect to this assignment, its Revolver Commitment is $__________, the outstanding
balance of its Revolver Loans is $__________; (b) makes no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in or in connection with the Loan Agreement or the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Loan Agreement or any other instrument or document furnished pursuant thereto, other than that
Assignor is the legal and beneficial owner of the interest being assigned by it hereunder and that such interest is free and clear of
any adverse claim; and (c) makes no representation or warranty and assumes no responsibility with respect to the financial condition of
Borrowers or the performance by Borrowers of their obligations under the Loan Documents. [Assignor is attaching the promissory note[s]
held by it and requests that Agent exchange such note[s] for new promissory notes payable to Assignee [and Assignor].]


 


3.       Assignee
(a) represents and warrants that it is legally authorized to enter into this Assignment; (b) confirms that it has received copies of the
Loan Agreement and such other Loan Documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment; (c) agrees that it shall, independently and without reliance upon Assignor and based on such documents
and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under
the Loan Documents; (d) confirms that it is an Eligible Assignee; (e) appoints and authorizes Agent to take such action as agent on its
behalf and to exercise such powers under the Loan Agreement as are delegated to Agent by the terms thereof, together with such powers
as are incidental thereto; (f) agrees that it will observe and perform all obligations that are required to be performed by it as a “Lender”
under the Loan Documents; and (g) represents and warrants that the assignment evidenced hereby will not result in a non-exempt “prohibited
transaction” under Section 406 of ERISA.


 


4.       This
Agreement shall be governed by the laws of the State of New York. If any provision is found to be invalid under Applicable Law, it shall
be ineffective only to the extent of such invalidity and the remaining provisions of this Agreement shall remain in full force and effect.


 


 


 


 






    	 	94	 



     


    

 


5.       Each
notice or other communication hereunder shall be in writing, shall be sent by messenger, by telecopy or facsimile transmission, or by
first-class mail, shall be deemed given when sent and shall be sent as follows:


 


		(a)	If to Assignee, to the following address (or to such other address as Assignee may designate from time
to time):






__________________________


__________________________


__________________________


 


		(b)	If to Assignor, to the following address (or to such other address as Assignor may designate from time
to time):






__________________________


__________________________


__________________________


__________________________


 


Payments hereunder shall be
made by wire transfer of immediately available Dollars as follows:


 


If to Assignee, to the following
account (or to such other account as Assignee may designate from time to time):


 


______________________________


______________________________


ABA No._______________________


______________________________


Account No.____________________


Reference: _____________________


 


If to Assignor, to the following
account (or to such other account as Assignor may designate from time to time):


 


______________________________


______________________________


ABA No._______________________


______________________________


Account No.____________________


Reference: _____________________


 


 


 


 


 


 






    	 	95	 



     


    

 


IN WITNESS WHEREOF,
this Assignment and Acceptance is executed as of _____________.


 


_____________________________________


(“Assignee”)


 


 


 


By___________________________________


Title:


 


_____________________________________


(“Assignor”)


 


 


 


By___________________________________


Title:


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 	96	 



     


    

 


ExhibIT
a-2


to


Loan, Security and Guarantee Agreement


 


 


ASSIGNMENT NOTICE


 


Reference is made to (1) the
Loan, Security and Guarantee Agreement dated as of November 16, 2022, as amended (“Loan Agreement”), among APPLIED
OPTOELECTRONICS, INC., a Delaware corporation (“AOI”, and together with any other Person from time to time designated
as a borrower thereunder, collectively, the “Borrowers” and each, individually, a “Borrower”), the
other Obligors from time to time party thereto, the financial institutions party to the Loan Agreement from time to time as Lenders, and
CIT NORTHBRIDGE CREDIT LLC, a Delaware limited liability company (“CNC”), as agent for the Secured Parties (in
such capacity, “Agent”). Terms are used herein as defined in the Loan Agreement.


 


Assignor hereby notifies Borrowers
and Agent of Assignor’s intent to assign to Assignee pursuant to the Assignment (a) a principal amount of $________ of Assignor’s
outstanding Revolver Loans and (b) the amount of $__________ of Assignor’s Revolver Commitment (which represents ____% of the total
Revolver Commitments) (the foregoing items being, collectively, the “Assigned Interest”), together with an interest
in the Loan Documents corresponding to the Assigned Interest. This Agreement shall be effective as of the date (“Effective Date”)
indicated below, provided this Assignment Notice is executed by Assignor, Assignee, Agent and Borrower Agent, if applicable. Pursuant
to the Assignment, Assignee has expressly assumed all of Assignor’s obligations under the Loan Agreement to the extent of the Assigned
Interest, as of the Effective Date.


 


For purposes of the Loan Agreement,
Agent shall deem Assignor’s Revolver Commitment to be reduced by $_________, and Assignee’s Revolver Commitment to be increased
by $_________.


 


The address of Assignee to
which notices and information are to be sent under the terms of the Loan Agreement is:


 


________________________


________________________


________________________


________________________


 


The address of Assignee to which payments are to
be sent under the terms of the Loan Agreement is shown in the Assignment.


 


This Notice is being delivered
to Borrowers and Agent pursuant to Section 13.3 of the Loan Agreement. Please acknowledge your acceptance of this Notice by executing
and returning to Assignee and Assignor a copy of this Notice.


 


IN WITNESS WHEREOF,
this Assignment Notice is executed as of _____________.


 


_____________________________________


(“Assignee”)


 


 


By___________________________________


Title:


 


 


_____________________________________


(“Assignor”)


 


 


By___________________________________


Title:


 


 






    	 	97	 



     


    

 


ACKNOWLEDGED AND AGREED,


 


AS OF THE DATE SET FORTH ABOVE:


 


BORROWER AGENT:*


 


_________________________________


 


 


By_______________________________


Title:


 


* No signature required if Assignee is a Lender, Affiliate of a Lender
or Approved Fund, or if an Event of Default exists.


 


 


CIT NORTHBRIDGE CREDIT LLC,


 


as Agent


 


 


By_______________________________


Title:


 


 


 


 


 


 


 


 






    	 	98	 



     


    

 


EXHIBIT C

to

Loan, Security and Guarantee Agreement


 


COMPLIANCE CERTIFICATE


 


THE UNDERSIGNED HEREBY CERTIFIES AS FOLLOWS:


 


 


1. I am the [___________] (the
“Chief Financial Officer”) of Applied Optoelectronics, Inc., a Delaware corporation (“Borrower Agent”).
Capitalized terms used but not defined in this Compliance Certificate (this “Certificate”) shall have the meanings
set forth in the Loan Agreement.


 


2. I have reviewed the terms
of that certain Loan, Security and Guarantee Agreement, dated as of November 16, 2022 (as amended, amended and restated, supplemented
or otherwise modified from time to time, the “Loan Agreement”), by and among APPLIED OPTOELECTRONICS, INC.,
a Delaware corporation (“AOI”, and together with any other Person from time to time designated as a borrower thereunder,
collectively, the “Borrowers” and each, individually, a “Borrower”), the other Obligors from time
to time party thereto, the financial institutions party to the Loan Agreement from time to time as Lenders, and CIT NORTHBRIDGE CREDIT
LLC, a Delaware limited liability company (“CNC”), as agent for the Secured Parties (in such capacity, “Agent”),
and I have made, or have caused to be made under my supervision, a review in reasonable detail of the transactions and condition of Borrowers
and their Subsidiaries during the accounting period covered by the attached financial statements.


 


3. This Certificate is delivered
in connection with the [calendar month] [fiscal year] ending [_____________] (the “Reporting Period”).


 


4. Attached hereto as Exhibit
A are the financial statements, comparisons and reports required to be delivered under Section [10.1.2(a)/10.1.2(b)] of the
Loan Agreement with respect to the Reporting Period (collectively, the “Financial Statements”).


 


5. The examination described
in paragraph 2 above did not disclose, and I have no knowledge of, the existence of any condition or event which constitutes an
Event of Default or Default during or at the end of the Reporting Period or as of the date of this Certificate, except as set forth in
Exhibit B as attached hereto, if any, to this Certificate, describing in detail the nature of the condition or event, the period
during which it has existed and the action which Obligors have taken, are taking, or propose to take with respect to each such condition
or event.


 


6. The Financial Statements
delivered with this Certificate are prepared in accordance with GAAP [(other than the absence of footnotes and year-end audit adjustments)],1
and fairly present the financial positions and results of operations of Borrowers and their Subsidiaries on a consolidated and consolidating
basis at the dates and for the periods indicated. No change in GAAP or the application thereof has occurred since the Effective Date which
affects the Financial Statements delivered with this Certificate.


 


7. The Obligors and their Subsidiaries
have observed and complied with the covenant set forth in Section 10.2.3 (Capital Expenditures) of the Loan Agreement and attached
hereto as Exhibit C are calculations reflecting such compliance.


 


8. The Borrower(s) has (have)
observed and complied with the applicable covenants set forth in Section 10.3 (Financial Covenants) of the Loan Agreement as set
forth in Exhibit D attached hereto, and attached hereto as Exhibit E is evidence reflecting such compliance.


 


 


 


 


 


___________________


1
Include for unaudited financial statements






    	 	99	 



     


    


 


The foregoing certifications,
together with the attachments as set forth on the Exhibits attached hereto and the financial statements delivered with this Certificate
in support hereof, are made and delivered this ___ day of ____________, 20__ pursuant to Section 10.1.2(c) of the Loan Agreement.


 


 


APPLIED OPTOELECTRONICS, INC.


 


 


 


By:                                                                       


Name:


Title:


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 	100	 



     


    

 


Exhibit A


Financial Statements


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 	1	 



     


    

 


Exhibit B


Events of Default and/or Defaults


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 



    	 	2	 



     


    

 


Exhibit C


Capital Expenditures


 


 


	
    A. Capital Expenditures through end of Reporting Period
	$[______]2
	 	 
	
    B. Maximum Permitted Capital Expenditures under Section 10.2.3
of the Loan Agreement
	$6,000,0003
	 	 
	Compliance (Yes or No)	 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


___________________





2
Borrower to specify whether any such Capital Expenditures were made with Net Proceeds
of the issuance of Equity Interests of AOI in accordance with Section 10.2.3 of the Loan Agreement.


 


3
Subject to increase pursuant to Section 10.2.3(ii) of the Loan Agreement.


 






    	 	3	 



     


    

 


Exhibit D


Financial Covenant Compliance 


 


 


Compliance status is indicated by circling Yes/No under “Complies”
column.


 


 


 


	Financial Covenant	 	Measurement Period	 	Required	 	Actual	 	Complies
	
    Section 10.3.1 Minimum Fixed Charge Coverage Ratio
	 	__________	 	≥ 1.00 to 1.00	 	_____ to 1.00	 	Yes        No


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






    	 	4	 



     


    

 


Exhibit E


Financial Covenant Calculations4


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


 


___________________


4
To include details of EBITDA and Fixed Charge Coverage Ratio calculations,
as applicable.






    	 	5