Exhibit 4.20


 


Commercial Security Agreement dated July 1, 2016, by and among Dougherty’s Holdings, Inc.; Dougherty’s
Pharmacy, Inc.; Dougherty’s Pharmacy El Paso, LLC; Dougherty’s Pharmacy Humble, LLC; Dougherty’s Pharmacy McAlester,
LLC; Dougherty’s Pharmacy Forest Park Dallas, LLC; and Dougherty’s Pharmacy Springtown, LLC (as “Grantors”)
and First National Bank of Omaha.


 


COMMERCIAL SECURITY AGREEMENT


 



	Principal	Loan Date	Maturity	Loan No	Call / Coll	Account	Officer	Initials
	$4,750,000.00	07-01-2016	07-01-2017	4571681	110	 	301013	 


 


References
in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.


 


Any item above containing “***”
has been omitted due to text length limitations.


 


	Grantor: 	Dougherty's
    Holdings, Inc.;	Lender:	First National Bank of Omaha
	 	Dougherty’s Pharmacy, Inc.;
  Dougherty's Pharmacy El Paso LLC;
 Dougherty's Pharmacy Humble, LLC; 

Dougherty's
    Pharmacy McAlester, LLC;

Dougherty's Pharmacy
Forest Park Dallas, LLC; and 

Dougherty's Pharmacy Springtown, LLC

16250 Knoll Trail Ste 102

Dallas, TX 75248	 

         
	
        Branch #M2

        4500 Preston Road

        Frisco, TX 75034




 


 


THIS COMMERCIAL SECURITY AGREEMENT dated
July 1, 2016, is made and executed between Dougherty's Holdings, Inc.; DOUGHERTY'S PHARMACY, INC.; Dougherty's Pharmacy El Paso,
LLC; Dougherty's Pharmacy Humble, LLC; Dougherty’s Pharmacy McAlester, LLC; Dougherty's Pharmacy Forest Park Dallas, LLC;
and Dougherty's Pharmacy Springtown, LLC (“Grantor”) and First National Bank of Omaha (“Lender”)


 


GRANT OF SECURITY INTEREST. For valuable
consideration, Grantor grants to Lender a security interest in the Collateral to secure the Indebtedness and agrees that Lender
shall have the rights stated in this Agreement with respect to the Collateral, in addition to all other rights which Lender may
have by law.


 


COLLATERAL DESCRIPTION. The word “Collateral” as used in this Agreement means the following described property, whether now owned or hereafter acquired, whether now existing
or hereafter arising, and wherever located, in which Grantor is giving to Lender a security interest for the payment of the Indebtedness
and performance of all other obligations under the Note and this Agreement:


 


All inventory, equipment, accounts
(including but not limited to all health-care-insurance receivables), chattel paper, instruments, (including but not limited to
all promissory notes), letter-of-credit rights, letters of credit, documents, deposit accounts, investment property, money, other
rights to payment and performance, and general intangibles (including but not limited to all software and all payment intangibles);
and all, gas and other minerals before extraction; all oil, gas, other minerals and accounts constituting as-extracted collateral;
all fixtures; all timber to be cut; all attachments, accessions, accessories, fittings, increases, tools, parts, repairs, supplies,
and commingled goads relating to the foregoing property, and all additions, replacements of and substitutions for all or any part
of the foregoing property; all insurance refunds relating to the foregoing property; all good will relating to the foregoing property;
all records and data and embedded software relating to the foregoing property, and all equipment, inventory and software to utilize,
create, maintain and process any such records and data on electronic media; and all supporting obligations relating to the foregoing
property; all whether now existing or hereafter arising, whether now owned or hereafter acquired or whether now or hereafter subject
to any rights in the foregoing property; and all products and proceeds (including but not limited to all insurance payments) or
relating to the foregoing property.


 


 


 




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In addition, the word “Collateral”
also includes all the following, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever
located:


 


(A)       All
accessions, attachments, accessories, tools, parts, supplies, replacements of and additions to any of the collateral described
herein, whether added now or later.


 


(B)       All
products and produce of any of the property described in this Collateral section.


 


(C)       All
accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sale, lease, consignment
or other disposition of any of the property described in this Collateral section.


 


(D)       All
proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described
in this Collateral section, and sums due from a third party who has damaged or destroyed the Collateral or from that party's insurer,
whether due to judgment, settlement or other process.


 


(E)       All records and data relating
to any of the property described in this Collateral section, whether in the form of a writing, photograph, microfilm, microfiche,
or electronic media, together with all of Grantor's right, title, and interest in and to all computer software required to utilize,
create, maintain, and process any such records or data on electronic media.


 


CROSS-COLLATERALIZATION. In addition
to the Note, this Agreement secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any
one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter
arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct
or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually
or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise. However, this Agreement shall
not secure. and the “Indebtedness” shall not include, any obligations arising under Subchapters E and F of Chapter 342
of the Texas Finance Code, as amended.


 


FUTURE ADVANCES. In addition to the
Note, this Agreement secures all future advances made by Lender to Grantor regardless of whether the advances are made a) pursuant
to a commitment or b) for the same purposes.


 


RIGHT OF SETOFF. After an Event of Default,
and to the extent permitted by applicable law, Lender reserves a right of setoff in all Grantor's accounts with Lender (whether
checking, savings, or some other account). This includes all accounts Grantor holds jointly with someone else and all accounts
Grantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff
would be prohibited by law. Grantor authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums
owing on the Indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts
to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.


 


GRANTOR'S REPRESENTATIONS AND WARRANTIES
WITH RESPECT TO THE COLLATERAL With respect to the Collateral, Grantor represents and promises to Lender that:


 


Perfection of Security Interest.
Grantor agrees to take whatever actions are requested by Lender to perfect and continue Lender's security interest in the Collateral
upon request of Lender, Grantor will deliver to Lender any and all of the documents evidencing or constituting the Collateral,
and Grantor will note Lender's interest upon any and all chattel paper and instruments if not delivered to Lender for possession
by Lender. This is a continuing Security Agreement and will continue in effect even though all or any part of the indebtedness
paid in full and even though for a period of time Grantor may not be indebted to Lender.


 


 


 




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Notices to Lender. Grantor will promptly
notify Lender in writing at Lender's address shown above (or such other addresses as Lender may designate from time to time) prior
to any (1) change in Grantor's name; (2) change in Grantor's assumed business name(s): (3) change in the management of any Corporation
or in the management or in the members or managers of the limited liability company Grantor; (4) change in the authorized signer(s);
(5) change in Grantor's principal office address; (6) change in Grantor's state of organization; (7) conversion of Grantor to a
new or different type of business entity; or (8) change in any other aspect of Grantor that directly or indirectly relates to any
agreements between Grantor and Lender. No change in Grantor's name or state of organization will take effect until after Lender
has received notice.


 


No Violation. The execution and delivery
of this Agreement will not violate any law or agreement governing Grantor, or to which Grantor is a party, and its certificate
or articles of incorporation and bylaws do not prohibit any term or condition of this Agreement, and its membership agreement does
not prohibit any term or condition of this Agreement.


 


Enforceability of Collateral. To
the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the Uniform Commercial Code,
the Collateral is enforceable in accordance with its terms, is genuine, and fully complies with all applicable laws and regulations
concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have
authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any account becomes
subject to a security interest in favor of Lender, the account shall be a good and valid account representing an undisputed, bona
fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or previously shipped or
delivered pursuant to a contract of safe, or for services previously performed by Grantor with or for the account debtor. So long
as this Agreement remains in effect, Grantor shall not, without Lender's prior written consent, compromise, settle, adjust, or
extend payment under or with regard to any such Accounts. There shall be no setoffs or counterclaims against any of the Collateral,
and no agreement shall have been made under which any deductions or discounts may be claimed concerning the Collateral except those
disclosed by Lender in writing.


 


Location of the Collateral. Except
in the ordinary course of Grantor's business, Grantor agrees to keep the Collateral (or to the extent the Collateral consists of
intangible property such as accounts or general intangibles, the records concerning the Collateral) at Grantor's address shown
above or at such other locations as are acceptable to Lender. Upon Lender's request, Grantor will deliver to Lender in form satisfactory
to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including without limitation
the following: (1) all real property Grantor owns or is purchasing: (2) all real property Grantor renting or leasing: (3) all storage
facilities Grantor owns, rents, leases, or uses: and (4) all other properties where Collaterals or may be located.


 


Removal of the Collateral. Except
in the ordinary course of Grantor's business, including the sales of inventory, Grantor shall not remove the Collateral from its
existing location without Lender's prior written consent. To the extent that the Collateral consists of vehicles or other titled
property, Grantor shall not take or permit any action which would require application for certificates of title for vehicles outside
the State of Texas, without Lender's prior written consent Grantor shall, whenever requested, advise Lender of the exact location
of the Collateral.


 


Transactions involving Collateral.
Except for inventory sold or accounts collected in the ordinary course of Grantor's business, or as otherwise provided for in this
Agreement, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral. While Grantor is not in default
under this Agreement Grantor may sell inventory, but only in the ordinary course of its business and only to buyers who qualify
as a buyer in the ordinary course of business. A sale in the ordinary course of Grantor's business does not include a transfer
in party or total satisfaction of a debt or any bulk sale. Grantor shall not pledge, mortgage, encumber or otherwise permit the
Collateral to be subject to any Lien, security interest, encumbrance, or charge, other than the security interest provided for
in this Agreement, without the prior written consent of Lender. This includes security interests even if junior in right to the
security interests granted under this Agreement. Unless waived by Lender, all proceeds from any disposition of the Collateral (for
whatever reason) shall be held in trust for Lender and shall not be commingled with any other funds; provided however, this requirement
shall not constitute consent by Lender to any sale or other disposition. Upon receipt, Grantor shall immediately deliver any such
proceeds to Lender.


 


 


 




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Title. Grantor represents and warrants
to Lender that Grantor holds good and marketable title to the Collateral, free and clear of all liens and encumbrances except for
the lien of this Agreement. No financing statement covering any of the Collateral is on file in any public office other than those
which reflect the security interest created by this Agreement or to which Lender has specifically consented. Grantor shall defend
Lender's rights in the Collateral against the claims and demands of all other persons.


 


Repairs and Maintenance. Grantor
agrees to keep and maintain, and to cause others to keep and maintain, the Collateral in good order, repair and condition at all
times while this Agreement remains in effect. Grantor further agrees to pay when due all claims for work done on, or services rendered
or material furnished in connection with the Collateral so that no lien or encumbrance may ever attach to or be filed against the
Collateral.


 


Inspection of Collateral. Lender
and Lender's designated representatives and agents shall have the right at all reasonable times to examine and inspect the Collateral
wherever located.


 


Taxes, Assessments and Liens. Grantor
will pay when due all taxes, assessments and liens upon the Collateral’s use or operation, upon this Agreement, upon any
promissory note or notes evidencing the Indebtedness, or upon any of the other Related Documents. Grantor may withhold any such
payment or may elect to contest any item if Grantor is in good faith conducting an appropriate proceeding to contest the obligation
to pay and so long as Lender's interest in the Collateral not jeopardized in Lender's sole opinion. In any contest Grantor shall
defend itself and Lender and shall satisfy any final adverse judgment before enforcement against the Collateral. Grantor shall
name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Grantor further agrees to furnish
Lender with evidence that such taxes, assessments, and governmental and other charges have been paid in full and in a timely manner.
Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding
to contest the obligation to pay and so long as lender's interest in the Collateral is not jeopardized.


 


Compliance with Governmental Requirements.
Grantor shall comply promptly with all laws, ordinances, rules and regulations of all governmental authorities, now or hereafter
in effect, applicable to the ownership production, disposition, or use of the Collateral, including all laws or regulations relating
to the undue erosion of highly-erodible land or relating to the conversion of wetlands for the production of an agricultural product
or commodity. Grantor may contest in good faith any such law, ordinance or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Lenders interest in the Collateral, In Lender's opinion, is not jeopardized.


 


Hazardous Substances. Grantor represents
and warrants that the Collateral never has been, and never will be so long as this Agreement remains a lien on the Collateral,
used in violation of any Environmental Laws or for release or threatened release of any Hazardous Substance. The representations
and warranties contained herein are based on Grantor's due diligence in investigating the Collateral for Hazardous Substances.
Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes
liable for cleanup or other costs under any Environmental Laws, and (2) agrees to indemnify, defend, and hold harmless Lender against
any and all claims and losses resulting tram a breach of this provision of this Agreement. This obligation to indemnify and defend
shall survive the payment of the Indebtedness and the satisfaction of this Agreement.


 


Maintenance of Casualty Insurance.
Grantor shall procure and maintain all risks insurance, including without limitation fire, theft and liability coverage together
with such other insurance as Lender may require with respect to the Collateral, in form, amounts, coverages and basis reasonably
acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of
insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at
least thirty (30) days' prior written notice to Lender and not including any disclaimer of the insurer's liability for failure
to give such a notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will
not be impaired in any way by any act, omission or default of Grantor or any other person. In connection with all policies covering
assets in which Lender holds or is offered a security interest, Grantor will provide Lender with such loss payable or other endorsements
as Lender may require. If Grantor at any time fails to obtain or maintain any insurance as required under this Agreement, Lender
may (but shall not be obligated to) obtain such insurance as Lender deems appropriate, including Lender so chooses “single
interest insurance,” which will cover only Lenders interest in the Collateral.


 


 




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Application of Insurance
Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Collateral, whether or not such casualty or loss
is covered by insurance. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty.
All proceeds of any insurance on the Collateral, Including accrued proceeds thereon, shall be held by Lender as part of the
Collateral. If Lender consents to repair or replacement of the damaged or destroyed Collateral, Lender shall, upon
satisfactory proof of expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or
restoration. If Lender does not consent to repair or replacement of the Collateral, Lender shall retain a sufficient amount
of the proceeds to pay all of  the Indebtedness, and shall pay the balance to Grantor. Any proceeds which have not been
disbursed within six (6) months after their receipt and which Grantor has not committed to the repair or restoration of the
Collateral shall be used to prepay the Indebtedness.


 


Insurance Reports. Grantor, upon
request of Lender, shall furnish to Lender reports on each existing policy of insurance showing such information as Lender may
reasonably request including the following: (1) the name of the Insurer: (2) the risks insured; (3) the amount of the policy; (4)
the property insured; (5) the then current value on the basis of which Insurance has been obtained and the manner of determining
that value: and (6) the expiration date of the policy. In addition, Grantor shall upon request by Lender (however not more often
than annually) have an independent appraiser satisfactory to Lender determine, as applicable, the cash value or replacement cost
of the Collateral.


 


Financing Statements. Grantor
authorizes Lender to file a UCC financing statement, or alternatively, a copy of this Agreement to perfect Lender's security
interest. At Lender's request Grantor additionally agrees to sign all other documents that are necessary to perfect, protect,
and continue Lender's security interest in the Property. Grantor will pay all filing fees, title transfer fees, and other
fees and costs involved unless prohibited by law or unless Lender is required by law to pay such tees and costs. Grantor
irrevocably appoints Lender to execute documents necessary to transfer title if there is a default Lender may file a copy of
this Agreement as a financing statement.


 


GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT
ACCOUNTS. Until default and except as otherwise provided below with respect to accounts, Grantor may have possession of the
tangible personal property and beneficial use of all the Collateral and may use any lawful manner not inconsistent with this Agreement
or the Related Documents, provided that Grantor's right to possession and beneficial use shall not apply to any Collateral beneficial
possession of the Collateral by Lender is required by law to perfect Lender's security interest in such Collateral. Until otherwise
notified by Lender, Grantor may collect any of the Collateral consisting of accounts. After an Event of Default, Lender may exercise
its rights to collect the accounts and to notify account debtors to make payments directly lender for application to the Indebtedness.
If Lender at any time has possession of any Collateral, whether before or after an Event of Default, Lender shall be deemed to
have exercised reasonable care in the custody and preservation of the Collateral if Lender takes such action for that purpose as
Grantor shall request or as Lender, in Lender's sole discretion, shall deem appropriate under the circumstances, but failure to
honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. Lender shall not be required
to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain
any security Interest given to secure the Indebtedness.


 


LENDER'S EXPENDITURES. If any action
or proceeding is commenced that would materially affect Lender's interest in the Collateral or if Grantor fails to comply with
any provision to this Agreement or any Related Documents, Including but not limited to Grantor's failure to discharge or pay when
due any amounts Grantor is required to discharge or pay under this Agreement or any Related Documents, Lender on Grantor's behalf
may (but shall not be obligated to) take any action that Lender deems appropriate, Including but not limited to discharging or
paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Collateral and
paying all costs for insuring, maintaining and preserving the Collateral. All such expenditures paid by Lender for such purposes
will then bear interest at the Note rate from the date paid by Lender to the date at repayment by Grantor. To the extent permitted
by applicable law, all such expenses will become a partial the indebtedness and, all Lenders option, will (A) be payable on demand;
(B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during
either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
which will be due and payable at the Note's maturity. The Agreement also will secure payment of these amounts. Such right shall
be in addition to all other rights and remedies to which Lender may be entitled upon Default.


 


DEFAULT. Each of the following shall constitute an Event
of Default under this Agreement:


 


Payment Default. Grantor tails to make any payment when
due under the Indebtedness.


 


 


 




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Other Defaults. Grantor fails to
comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related
Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between
Lender and Grantor.


 


Default in Favor of Third Parties.
Any guarantor or Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any
other agreement, in favor of any other creditor or person that may materially affect any of any guarantor's or Grantors property
or ability to perform their respective obligations under this Agreement or any of the Related Documents.


 


False Statements. Any warranty, representation
or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Agreement or the Related Documents is false
or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.


 


Defective Collateralization. This
Agreement or any of the Related Documents ceases to be in full force and effect (including failure to any collateral document to
create a valid and perfected security interest or lien) at any time and for any reason.


 


Insolvency. The dissolution or termination
of Grantor's existence as a going business, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's
property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under
any bankruptcy or insolvency laws by or against Grantor.


 


Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, sell-help, repossession or any other method,
by any creditor at Grantor or by any governmental agency against any collateral securing the Indebtedness. This includes a garnishment
of any of Grantors accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is
a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeited
proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies
or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being
an adequate reserve or bond for the dispute.


 


Events Affecting Guarantor. Any of
the preceding events occurs with respect any Guarantor of any of the Indebtedness or Guarantor dies or becomes incompetent or revokes
or disputes the validity of, or liability under, any Guaranty of the Indebtedness.


 


Adverse Change. A material adverse
change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is
impaired.


 


RIGHTS AND REMEDIES ON DEFAULT. If an
Event of Default occurs under this Agreement, at any time thereafter, Lender shall have all the rights of a secured party under
the Texas Uniform Commercial Code. In addition and without limitation, Lender may exercise any one or more of the following rights
and remedies:


 


Accelerate Indebtedness. Lender may
declare the entire Indebtedness immediately due and payable, without notice of any kind to Grantor.


 


Assemble Collateral. Lender may require
Grantor to deliver to Lender all or any portion of the Collateral and any and all certificates of title and other documents relating
to tile Collateral. Lender may require Grantor to assemble the Collateral and make it available to Lender at a place to be designated
by Lender. Lender also shall have full power to enter, provided Lender does so without a breach of the peace or a trespass, upon
the property of Grantor to take possession at and remove the Collateral. If the Collateral contains other goods not covered by
this Agreement at the time of repossession, Grantor agrees Lender may take such other goods, provided that Lender makes reasonable
efforts to return them to Grantor after repossession.


 


 


 




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Sell the Collateral. Lender shall
have full power to .sell, lease, transfer, or otherwise deal with tie Collateral or proceeds thereof in Lenders own name or that
of Grantor. Lender may sell the Collateral at public auction or private sale. Unless the Collateral threatens to decline speedily
in value or is of a type customarily sold on a recognized market, Lender will give Grantor, and other persons as required by law,
reasonable notice of the time and place of any public sale, or the time after which any private sale or any other disposition of
the Collateral is to be made. However, no notice need be provided to any person who, after Event of Default occurs, enters into
and authenticates an agreement waiving that person's right to notification of sale. The requirements of reasonable notice shall
be met it such notice is given at least ten (10) days before the time of the sale or disposition. Any expenses relating to the
disposition of the Collateral, including without limitation the expenses all retaking, holding, insuring, preparing for sale and
selling the Collateral, shall become a part of the Indebtedness secured by this Agreement and shall be payable on demand, with
interest at the Note rate from date of expenditure until repaid.


 


Appoint Receiver. Lender shall have
the right to have a receiver appointed to take possession of all or any part of the Collateral, with the power to protect and preserve
the Collateral, to operate the Collateral preceding foreclosure or sale, and to collect the rents from the Collateral and apply
the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted
by law. Lenders right to the appointment of a receiver shall exist whether or not the apparent value of the Collateral exceeds
the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver.


 


Collect Revenues, Apply Accounts.
Lender, either itself or through a receiver, may collect the payments, rents, income, and revenues from the Collateral. Lender
may at any time in Lender's discretion transfer any Collateral into Lender's own name or that at Lender's nominee and receive the
payments, rents, income, and revenues here from and hold the same as security for the Indebtedness or apply it to payment of the
Indebtedness in such order of preference as Lender may determine. Insofar as the Collateral consists of accounts, general intangibles,
insurance policies, instruments. chattel paper, choses in action, or similar property, Lender may demand, collect, receipt for,
settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender may determine, whether or not indebtedness
or Collateral is then due. For these purposes, Lender may, on behalf of and in the name of Grantor, receive, open and dispose of
mail addressed to Grantor; change any address to which mail and payments are to be sent; and endorse notes, checks, drafts, money
orders, documents of title, instruments and items pertaining to payment, shipment, or storage of any Collateral. To facilitate
collection, Lender may notify account debtors and obligors on any Collateral to make payments directly to Lender.


 


Obtain Deficiency. If Lender chooses
to sell any or all of the Collateral, Lender may obtain a judgment against Grantor for any deficiency remaining on the Indebtedness
due to Lender after application of all amounts received from the exercise of the rights provided in this Agreement. Grantor shall
be liable for a deficiency even if the transaction described in this subsection is a sale of accounts or chattel paper.


 


Other Rights and Remedies. Lender
shall have all the rights and remedies of a secured creditor under the provisions of the Uniform Commercial Code, as may be amended
from time to time. In addition, Lender shall have and may exercise any or all other rights and remedies ii may have available at
law, in equity, or otherwise.


 


Election of Remedies. Except as may
be prohibited by applicable law, all of Lander's rights and remedies, whether evidenced by this Agreement. The Related Documents,
or by any other writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any
remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation
of Grantor under this Agreement, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise
its remedies.


 


ELECTRONIC COPIES. Lender may copy,
electronically or otherwise, and thereafter destroy, the originals of this Agreement and/or Related Documents in the regular course
of Lender's business. All such copies produced from an electronic form or by any other reliable means (i.e., photographic image
or facsimile) shall in all respects be considered equivalent of an original, and Borrower hereby waives any rights or objections
to the use of such copies.


 


 


 




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MISCELLANEOUS PROVISIONS. The following
miscellaneous provisions are a part of this Agreement:


 


Amendments. This Agreement, together
with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this
Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or
parties sought to be charged or bound by the alteration or amendment.


 


Attorney’s Fees; Expenses.
Grantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's reasonable attorneys' fees and Lender’s
legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce
this Agreement, and Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's reasonable
attorneys' fees and legal expenses whether or not there is a lawsuit, including Lender's reasonable attorneys' fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. Grantor also shall pay all court costs and such additional fees as may be directed by the court.


 


Caption Headings. Caption headings
in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.


 


Governing Law. This Agreement will
be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Texas
without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of Texas.


 


Choice of Venue. If there is a lawsuit,
and if the transaction evidenced by this Agreement occurred in Collin County. Grantor agrees upon Lender's request to submit to
the jurisdiction of the courts of Collin County, State of Texas.


 


Joint and Several Liability. All
obligations of Grantor under this Agreement shall be joint and several, and all references to Grantor shall mean each and every
Grantor. This means that each Grantor signing below is responsible for all obligations in this Agreement. Where any one or more
of the parties is a corporation, partnership, limited liability company or similar entity, it is not necessary for Lender to inquire
into the powers of any of the officers, directors, partners, members, or their agents acting or purporting to act on the entity's
behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed under this
Agreement.


 


No Waiver by Lender. Lender shall
not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay
or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver
by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict
compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between
Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions.
Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any Instance shall not
constitute continuing consent to subsequent Instances where such consent is required and in all cases such consent may be granted
or withheld in the sale discretion of Lender.


 


Notices. Any notice required to
be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually
received by telefacsimile (unless otherwise required by law). When deposited with a nationally recognized overnight courier,
or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid,
directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this
Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the
party's address. For notice purposes. Grantor agrees to keep Lender informed at all times of Grantor's current address.
Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor
is deemed to be notice given to all Grantors.


 


Power of Attorney. Grantor hereby
appoints Lender as Grantor's irrevocable attorney-in-fact for the purpose of executing any documents necessary to perfect, amend,
or to continue the security interest granted in this Agreement or to demand termination of filings of other secured parties. Lender
may at any time, and without further authorization from Grantor, file a carbon, photographic or other reproduction of any financing
statement or of this Agreement for use as a financing statement. Grantor will reimburse Lender for all expenses for the perfection
and the continuation of the perfection of Lender's security interest in the Collateral.


 


 


 




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Severability. If a court of competent
of jurisdiction finds any provision at this Agreement to be illegal, invalid, or unenforceable as to any person or circumstance,
that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circumstance.
If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending
provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of
any other provision of this Agreement.


 


Successors and Assigns. Subject to
any limitations stated in this Agreement on transfer of Grantor's interest, this Agreement shall be binding upon and inure to the
benefit of the parties, their successors and assigns. If ownership of the Collateral becomes vested in a person other than Grantor,
Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Agreement and the Indebtedness by
way of forbearance or extension without releasing Grantor from the obligations of this Agreement or liability under the Indebtedness.


 


Survival of Representations and Warranties.
All representations, warranties, and agreements made by Grantor in this Agreement shall survive the execution and delivery of this
Agreement, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall
be paid in full.


 


Time is of the Essence. Time is of
the essence in the performance of this Agreement.


 


Waive Jury. All parties to this Agreement
hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party.


 


DEFINITIONS. The following capitalized words
and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary, all references
to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall
include the plural, and the plural shall include the singular. as the context may require. Words and terms not otherwise defined
in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code.


 


Agreement. The word “Agreement”
means this Commercial Security Agreement as this Commercial Security Agreement may be amended or modified from time to time, together
with all exhibits and schedules attached to this Commercial Security Agreement from time to time.


 


Borrower. The word “Borrower” means Dougherty's Holdings, Inc.: DOUGHERTY'S PHARMACY, INC.; Dougherty's Pharmacy El Paso, LLC; Dougherty's Pharmacy Humble, LLC;
Dougherty's Pharmacy McAlester, LLC; Dougherty's Pharmacy Forest Park Dallas, LLC; and Dougherty's Pharmacy Springtown, LLC and
includes all co-signers and co-makers signing the Note and all their successors and assigns.


 


Collateral. The word “Collateral”
means all of Grantor's right, title and interest in and to all the Collateral as described in the Collateral Description section
of this Agreement.


 


Default. The word “Default”
means the Default set forth in this Agreement in the section titled “Default”.


 


Environmental Laws. The words “Environmental
Laws” mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health
or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, Pub. L.
No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation
and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant
thereto.


 


Event of Default. The words “Event
of Default” mean any of the events of default set forth in this Agreement in the default section of this Agreement.


 


 


 




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Grantor. The word “Grantor”
means Dougherty's Holdings, Inc.; DOUGHERTY'S PHARMACY, INC.; Dougherty's Pharmacy El Paso, LLC; Dougherty's Pharmacy Humble, LLC;
Dougherty's Pharmacy McAlester, LLC; Dougherty's Pharmacy Forest Park Dallas. LLC: and Dougherty's Pharmacy Springtown, LLC.


 


Guarantor. The word “Guarantor”
means any guarantor, surety, or accommodation party of any or all of the Indebtedness.


 


Guaranty. The word “Guaranty” means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.


 


Hazardous Substances. The words “Hazardous
Substances”·mean materials that, because of their quantity, concentration or physical, chemical or Infectious characteristics,
may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed
of, generated, manufactured, transported or otherwise handled. The words “Hazardous Substances” are used in their very
broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed
under the Environmental Laws. The term “Hazardous Substances” also includes, without limitation, petroleum and petroleum
by-products or any fraction thereof and asbestos.


 


Indebtedness. The word “Indebtedness”
means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other
indebtedness and costs and expenses for which Grantors responsible under this Agreement or under any of the Related Documents.
Specifically, without limitation, Indebtedness Includes the future advances set forth in the Future Advances provision, together
with all interest thereon and all amounts that may be indirectly secured by the Cross-Collateralization provision of this Agreement.


 


Lender. The word “Lender”
means First National Bank of Omaha, its successors and assigns.


 


Note. The word “Note” means
any and all of Borrowers liabilities, obligations and debts to Lender, now existing or hereinafter incurred or created, including,
without limitation, all loans, advances, interest, costs debts, overdraft indebtedness, credit card indebtedness, lease obligations,
liabilities and obligations under interest rate protection agreements or foreign currency exchange agreements or commodity price
protection agreements, other obligations, and liabilities of Borrower together with all modifications, increases, renewals, and
extensions of the aforementioned. Additionally, hereby incorporated as if fully set forth herein are the terms and conditions of
any promissory note, agreement or other document executed by Borrower and/or Lender indicating this security instrument or the
property described herein shall be considered “Collateral” securing such promissory note, agreement, or other instrument,
or any similar reference.


 


Property. The word "Property''
means all of Grantors right, title and interest in and to all the Property as described in the "Collateral Description"
section of this Agreement.


 


Related Documents. The words "Related
Documents" mean all promissory notes credit agreements, loan agreements, environmental agreements, guaranties, security agreements,
mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now
or hereinafter existing, executed in connection with the Indebtedness.


 


 




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GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL
SECURITY AGREEMENT AND AGREES TO ITS TERMS.


 


THIS AGREEMENT IS DATED JULY 1, 2016.


 


GRANTOR:


 





 





 





 







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LENDER:


 


 


/s/ Clifton B. Wisenhunt                            


First National Bank of Omaha


Texas Market President


 







 


 


 


 


 


 


 


 


 


 


 


 


 


 


 






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