Exhibit 10.1


 


LOAN
AND SECURITY AGREEMENT


 


THIS
LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of October 29, 2021 (the “Effective Date”)
among BroadOak Fund V, L.P. (“Lender”), Interpace
Biosciences, Inc., a Delaware corporation (“Parent”), Interpace
Diagnostics Corporation, a Delaware corporation (“Diagnostics Corporation”), Interpace
Diagnostics, LLC, a Delaware limited liability company (“Diagnostics”) and Interpace
Pharma Solutions, Inc., a Delaware corporation (“Pharma Solutions”, and together with Parent, Diagnostics
Corporation, and Diagnostics, each and together, jointly and severally, “Borrower”), provides the terms on which Lender
shall lend to Borrower and Borrower shall repay Lender. The parties agree as follows:


 


1
ACCOUNTING AND OTHER TERMS


 


Accounting
terms not defined in this Agreement shall be construed following GAAP. Calculations and determinations must be made following GAAP. Capitalized
terms not otherwise defined in this Agreement shall have the meanings set forth in Section 13. All other terms contained in this Agreement,
unless otherwise indicated, shall have the meaning provided by the Code to the extent such terms are defined therein.


 


2
LOAN AND TERMS OF PAYMENT


 


2.1
Promise to Pay. Borrower hereby unconditionally promises to pay Lender, the outstanding principal amount of the Term Loan Advance
and accrued and unpaid interest thereon as and when due in accordance with this Agreement.


 


2.1.1
Term Loan Advance.


 


(a)
Availability. Subject to the terms and conditions of this Agreement, on the date that all of the conditions set forth in Section
3.1 have been met, Lender shall make one term loan advance to Borrower in an aggregate original principal amount equal to Eight Million
Dollars ($8,000,000.00) (the “Term Loan Advance”).


 


(b)
Repayment. The Term Loan Advance shall be “interest-only” until the Term Loan Maturity Date, with interest due and
payable in accordance with Section 2.2(c) hereof. The Term Loan Advance, including all outstanding principal and accrued and unpaid interest
with respect to the Term Loan Advance, the Terminal Payment and all other outstanding Obligations under the Term Loan Advance, shall
be due and payable on the Term Loan Maturity Date. After repayment or prepayment, the Term Loan Advance may not be reborrowed.


 


(c)
Prepayment.


 


(i)
Voluntary. Borrower shall have the option to prepay all or any part of the Term Loan Advance, provided Borrower (i) delivers written
notice to Lender of its election to prepay the Term Loan Advance at least ten (10) days prior to such prepayment, and (ii) pays, on the
date of such prepayment (A) the outstanding principal to be prepaid plus accrued and unpaid interest with respect to the Term Loan Advance,
(B) solely if such prepayment is in connection with a Change of Control, the Terminal Payment and (C) all other sums, if any, that shall
have become due and payable with respect to the Term Loan Advance, including interest at the Default Rate with respect to any past due
amounts.


 


(ii)
Involuntary. If the Term Loan Advance is accelerated by Lender following the occurrence and during the continuance of an Event
of Default, Borrower shall immediately pay to Lender an amount equal to the sum of (i) all outstanding principal plus accrued and unpaid
interest with respect to the Term Loan Advance, (ii) solely if such acceleration is following a Change of Control, the Terminal Payment
and (iii) all other sums, if any, that shall have become due and payable with respect to the Term Loan Advance, including interest at
the Default Rate with respect to any past due amounts.


 


2.2
Payments of Interest.


 


(a)
Interest Rates. The principal amount outstanding under the Term Loan Advance shall accrue interest at a fixed rate equal to the
Interest Rate, which interest shall be payable monthly in accordance with Section 2.2(c) below.


 




    	 



     


    

 


(b)
Default Rate. Notwithstanding the foregoing, immediately upon the occurrence and during the continuance of an Event of Default,
Obligations shall bear interest at a rate per annum which is three percent (3.00%) above the rate that is otherwise applicable thereto
(the “Default Rate”) unless Lender, in its sole and absolute discretion, elects to impose a smaller increase. Fees
and expenses which are required to be paid by Borrower pursuant to the Loan Documents (including, without limitation, Lender Expenses)
but are not paid when due shall bear interest until paid at a rate equal to the highest rate applicable to the Obligations. Payment or
acceptance of the increased interest rate provided in this Section 2.2(b) is not a permitted alternative to timely payment and shall
not constitute a waiver of any Event of Default or otherwise prejudice or limit any rights or remedies of Lender.


 


(c)
Payment; Interest Computation. Interest is payable monthly on each Payment Date and shall be computed on the basis of a three
hundred sixty (360) day year for the actual number of days elapsed. In computing interest, (i) all payments received after 12:00 p.m.
Eastern time on any day shall be deemed received at the opening of business on the next Business Day, and (ii) the date of the making
of the Term Loan Advance shall be included and the date of payment shall be excluded; provided, however, that if the Term Loan Advance
is repaid on the same day on which it is made, such day shall be included in computing interest on such Term Loan Advance.


 


2.3
Fees. Borrower shall pay to Lender:


 


(a)
Terminal Payment. The Terminal Payment, when due hereunder.


 


(b)
Origination Fee. In consideration of Lender making of the Term Loan Advance, the Borrower hereby agrees that Lender shall be entitled
to receive an origination fee equal to 3.0% of the amount of the Term Loan, which origination fee shall be earned on the Term Loan Advance
Date and paid by the Borrower by deduction from the proceeds of the Term Loan Advance.


 


(c)
Lender Expenses. All Lender Expenses (including reasonable attorneys’ fees and expenses for documentation and negotiation
of this Agreement) incurred through and after the Term Loan Advance Date, when due (or, if no stated due date, upon demand by Lender).


 


2.4
Payments; Application of Payments.


 


(a)
All payments (including prepayments) to be made by Borrower under any Loan Document shall be made in immediately available funds in U.S.
Dollars, without setoff or counterclaim, before 12:00 p.m. Eastern time on the date when due. Payments of principal received after 12:00
p.m. Eastern time are considered received at the opening of business on the next Business Day. When a payment is due on a day that is
not a Business Day, the payment shall be due the next Business Day, and additional fees shall continue to accrue until paid.


 


(b)
Lender has the exclusive right to determine the order and manner in which all payments with respect to the Obligations may be applied.
Borrower shall have no right to specify the order or the accounts to which Lender shall allocate or apply any payments required to be
made by Borrower to Lender or otherwise received by Lender under this Agreement when any such allocation or application is not specified
elsewhere in this Agreement.


 


2.5
Withholding. Payments received by Lender from Borrower under this Agreement will be made free and clear of and without deduction
for any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any Governmental Authority (including any interest, additions to tax or penalties applicable thereto). Specifically, however, if at
any time any Governmental Authority, applicable law, regulation or international agreement requires Borrower to make any withholding
or deduction from any such payment or other sum payable hereunder to Lender, Borrower hereby covenants and agrees that the amount due
from Borrower with respect to such payment or other sum payable hereunder will be increased to the extent necessary to ensure that, after
the making of such required withholding or deduction, Lender receives a net sum equal to the sum which it would have received had no
withholding or deduction been required, and Borrower shall pay the full amount withheld or deducted to the relevant Governmental Authority.
Borrower will, upon request, furnish Lender with proof reasonably satisfactory to Lender indicating that Borrower has made such withholding
payment; provided, however, that Borrower need not make any withholding payment if the amount or validity of such withholding payment
is contested in good faith by appropriate and timely proceedings and as to which payment in full is bonded or reserved against by Borrower.
The agreements and obligations of Borrower contained in this Section 2.5 shall survive the termination of this Agreement.


 




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3
CONDITIONS OF LOANS


 


3.1
Conditions Precedent to the Term Loan Advance. Lender’s obligation to make Term Loan Advances is subject to the condition precedent
that Lender shall have received, in form and substance satisfactory to Lender, such documents, and completion of such other matters,
as Lender may reasonably deem necessary or appropriate, including, without limitation:


 


(a)
duly executed signatures to the Loan Documents;


 


(b)
the Operating Documents and long-form good standing certificates of each Borrower certified by the Secretary of State (or equivalent
agency) of Borrower’s jurisdiction of organization or formation and each jurisdiction in which Borrower is qualified to conduct
business, each as of a date no earlier than thirty (30) days prior to the Effective Date;


 


(c)
a secretary’s certificate of each Borrower with respect to such Borrower’s Operating Documents, incumbency, specimen signatures
and resolutions authorizing the execution and delivery of this Agreement and the other Loan Documents to which it is a party;


 


(d)
certified copies, dated as of a recent date, of financing statement searches, as Lender shall request, accompanied by written evidence
(including any UCC termination statements) that the Liens indicated in any such financing statements either constitute Permitted Liens
or have been or, in connection with the Term Loan Advance, will be terminated or released;


 


(e)
a duly executed payoff letter from (i) Ampersand 2018 Limited Partnership and (ii) 1315 Capital II, L.P.;


 


(f)
the Perfection Certificate(s) of Borrower, together with the duly executed original signatures thereto;


 


(g)
the Subordination Agreement, in form and substance acceptable to Lender, pursuant to which the Obligations hereunder are subordinated
in both lien priority and right of payment to the Senior Debt;


 


(h)
an amendment to, or consent under, the Senior Debt, in form and substance acceptable to Lender;


 


(i)
payment of the fees and Lender Expenses then due as specified in Section 2.3 hereof; provided that Borrower shall not be responsible
for Lender Expenses incurred through the Term Loan Advance Date in excess of Forty Thousand Dollars ($40,000);


 


(j)
timely receipt of an executed Advance Form;


 


(k)
the representations and warranties in this Agreement shall be true, accurate, and complete in all material respects on the date of the
Advance Form and on the Term Loan Advance Date; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations
and warranties expressly referring to a specific date shall be true, accurate and complete in all material respects as of such date,
and no Event of Default shall have occurred and be continuing or result from the Term Loan Advance; and


 


(l)
Lender determines in its sole discretion, there has not been a Material Adverse Change.


 


3.2
Covenant to Deliver. Borrower agrees to deliver to Lender each item required to be delivered to Lender under this Agreement as a
condition precedent to the Term Loan Advance. Borrower expressly agrees that a Term Loan Advance made prior to the receipt by Lender
of any such item shall not constitute a waiver by Lender of Borrower’s obligation to deliver such item, and the making of the Term
Loan Advance in the absence of a required item shall be in Lender’s sole discretion.


 




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3.3
Procedures for Borrowing. Subject to the prior satisfaction of all other applicable conditions to the making of the Term Loan Advance
set forth in this Agreement, to obtain the Term Loan Advance, Borrower shall notify Lender (which notice shall be irrevocable) by electronic
mail, facsimile, or telephone by 12:00 p.m. Eastern time on the Funding Date of the Term Loan Advance. Together with any such electronic
or facsimile notification, Borrower shall deliver to Lender by electronic mail or facsimile a completed Advance Form executed by a Responsible
Officer or his or her designee. Lender may rely on any telephone notice given by a person whom Lender believes is a Responsible Officer
or designee. Lender shall credit the Term Loan Advance to an account designated by the Borrower in the Advance Form. Lender may make
the Term Loan Advance under this Agreement based on instructions from a Responsible Officer or his or her designee.


 


3.4
Post-Closing Obligations. Within 30 days after the Effective Date, Borrower shall deliver to Lender:


 


(a)
evidence satisfactory to Lender that the insurance policies required by Section 6.4 hereof are in full force and effect, together with
appropriate evidence showing lender loss payable and/or additional insured clauses or endorsements in favor of Lender;


 


(b)
the Pledged Collateral (as defined in the Pledge Agreement); and


 


(c)
evidence satisfactory to Lender that the assignment in favor of Silicon Valley Bank over the patents owned by Cancer Genetics, Inc. has
been terminated.


 


4
CREATION OF SECURITY INTEREST


 


4.1
Grant of Security Interest. Borrower hereby grants Lender, effective as of the Term Loan Advance Date, for the benefit of Lender,
to secure the payment and performance in full of all of the Obligations, a continuing security interest in, and pledges to Lender, for
the benefit of Lender, the Collateral, wherever located, whether now owned or hereafter acquired or arising, and all proceeds and products
thereof.


 


4.2
Priority of Security Interest. Borrower represents, warrants, and covenants that the security interest granted herein is and shall
at all times continue to be a first priority perfected security interest in the Collateral (subject only to Permitted Liens that may
have superior priority to Lender’s Lien under this Agreement). If Borrower shall acquire a commercial tort claim valued in excess
of $250,000, Borrower shall promptly notify Lender in a writing signed by Borrower of the general details thereof and grant to Lender
in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be
in form and substance reasonably satisfactory to Lender.


 


If
this Agreement is terminated, Lender’s Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity
obligations) are repaid in full in cash. Upon payment in full in cash of the Obligations and at such time as Lender’s obligation
to make Term Loan Advances has terminated, Lender shall, at Borrower’s sole cost and expense, release its Liens in the Collateral
and all rights therein shall revert to Borrower.


 


4.3
Authorization to File Financing Statements. Borrower hereby authorizes Lender to file financing statements, without notice to Borrower,
with all appropriate jurisdictions to perfect or protect Lender’s interest or rights hereunder, including a notice that any disposition
of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Lender under the Code. Such financing
statements may indicate the Collateral as “all assets of the Debtor” or words of similar effect, or as being of an equal
or lesser scope, or with greater detail, all in Lender’s discretion.


 


4.4
Lien Subordination. Lender agrees that the Liens granted to them hereunder shall be subordinate to the Liens securing the Senior
Debt pursuant to the Subordination Agreement.


 




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5
REPRESENTATIONS AND WARRANTIES


 


Borrower
represents and warrants as follows:


 


5.1
Due Organization, Authorization; Power and Authority. Borrower is duly existing and in good standing as a Registered Organization
in its jurisdiction of formation and is qualified and licensed to do business and is in good standing in any jurisdiction in which the
conduct of its business or its ownership of property requires that it be qualified except where the failure to do so could not reasonably
be expected to have a material adverse effect on Borrower’s business. In connection with this Agreement, Borrower has delivered
to Lender a completed certificate signed by Borrower, entitled “Perfection Certificate”. Borrower represents and warrants
to Lender that (a) Borrower’s exact legal name is that indicated on the Perfection Certificate and on the signature page hereof;
(b) Borrower is an organization of the type and is organized in the jurisdiction set forth in the Perfection Certificate; (c) the Perfection
Certificate accurately sets forth Borrower’s organizational identification number or accurately states that Borrower has none;
(d) the Perfection Certificate accurately sets forth Borrower’s place of business, or, if more than one, its chief executive office
as well as Borrower’s mailing address (if different than its chief executive office); (e) Borrower (and each of its predecessors)
has not, in the past five (5) years, changed its jurisdiction of formation, organizational structure or type, or any organizational number
assigned by its jurisdiction; and (f) all other information set forth on the Perfection Certificate pertaining to Borrower and each of
its Subsidiaries is accurate and complete (it being understood and agreed that Borrower may from time to time update certain information
in the Perfection Certificate after the Effective Date to the extent permitted by one or more specific provisions in this Agreement).


 


The
execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and do not (i)
conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default under or violate
any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment, injunction, decree, determination
or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of their property or assets may be bound or
affected, (iv) require any action by, filing, registration, or qualification with, or Governmental Approval from, any Governmental Authority
(except such Governmental Approvals which have already been obtained and are in full force and effect or are being obtained pursuant
to Section 6.1(b)) or (v) constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in
default under any agreement to which it is a party or by which it is bound in which the default could reasonably be expected to have
a Material Adverse Change.


 


5.2
Collateral. Borrower has good title to, has rights in, and the power to transfer each item of the Collateral upon which it purports
to grant a Lien hereunder, free and clear of any and all Liens except Permitted Liens. Borrower has no deposit accounts other than the
deposit accounts described in the Perfection Certificate delivered to Lender in connection herewith, or of which Borrower has given Lender
notice and taken such actions as are necessary to give Lender a perfected security interest therein to the extent required by Section
6.5.


 


The
Collateral is not in the possession of any third party bailee (such as a warehouse) except as otherwise provided in the Perfection Certificate.
None of the components of the Collateral shall be maintained at locations other than as provided in the Perfection Certificate or as
permitted pursuant to Section 7.2.


 


Borrower
is the sole owner of the Intellectual Property which it owns or purports to own except for (a) non-exclusive licenses granted to its
customers in the ordinary course of business, (b) over-the-counter software that is commercially available to the public, and (c) material
Intellectual Property licensed to Borrower and noted on the Perfection Certificate. Each Patent which it owns or purports to own and
which is material to Borrower’s business is valid and enforceable, and no part of the Intellectual Property which Borrower owns
or purports to own and which is material to Borrower’s business has been judged invalid or unenforceable, in whole or in part.
To the best of Borrower’s knowledge, no claim has been made that any part of the Intellectual Property violates the rights of any
third party except to the extent such claim would not reasonably be expected to have a material adverse effect on Borrower’s business.


 


Except
as noted on the Perfection Certificate, Borrower is not a party to, nor is it bound by, any Restricted License.


 


5.3
Litigation. There are no actions or proceedings pending or, to the knowledge of the Responsible Officers, threatened in writing by
or against Borrower or any of its Subsidiaries that could reasonably be expected to result in a Material Adverse Change.


 


5.4
Financial Statements; Financial Condition. All consolidated financial statements for Borrower and any of its Subsidiaries delivered
to Lender fairly present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated
results of operations. There has not been any Material Adverse Change since the date of the most recent financial statements submitted
to Lender.


 




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5.5
Solvency. The fair salable value of the assets of Parent and its Subsidiaries, taken as a whole, (including goodwill minus disposition
costs) exceeds the fair value of their liabilities; Parent and its Subsidiaries, taken as a whole, are not left with unreasonably small
capital after the transactions in this Agreement; and Parent and its Subsidiaries, taken as a whole, are able to pay their debts (including
trade debts) as they mature.


 


5.6
Regulatory Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities in extending
credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied in all material
respects with the Federal Fair Labor Standards Act. Neither Borrower nor any of its Subsidiaries is a “holding company” or
an “affiliate” of a “holding company” or a “subsidiary company” of a “holding company”
as each term is defined and used in the Public Utility Holding Company Act of 2005. Borrower has not violated any applicable laws, ordinances
or rules, the violation of which could reasonably be expected to result in a Material Adverse Change. None of Borrower’s or any
of its Subsidiaries’ properties or assets has been used by Borrower or any Subsidiary or, to the best of Borrower’s knowledge,
by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower
and each of its Subsidiaries have obtained all consents, approvals and authorizations of, made all declarations or filings with, and
given all notices to, all Governmental Authorities that are necessary to continue their respective businesses as currently conducted.


 


5.7
Subsidiaries; Investments. Borrower does not own any stock, partnership interest or other equity securities except for Permitted
Investments.


 


5.8
Tax Returns and Payments; Pension Contributions. Borrower has timely filed all required tax returns and reports, and Borrower has
timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower. Borrower may defer
payment of any contested taxes, provided that Borrower (a) in good faith contests its obligation to pay the taxes by appropriate proceedings
promptly and diligently instituted and conducted, (b) notifies Lender in writing of the commencement of, and any material development
in, the proceedings, (c) posts bonds or takes any other steps required to prevent the governmental authority levying such contested taxes
from obtaining a Lien upon any of the Collateral that is other than a “Permitted Lien”. Borrower is unaware of any claims
or adjustments proposed for any of Borrower’s prior tax years which could result in additional taxes becoming due and payable by
Borrower. Borrower has paid all amounts necessary to fund all present pension, profit sharing and deferred compensation plans in accordance
with their terms, and Borrower has not withdrawn from participation in, and has not permitted partial or complete termination of, or
permitted the occurrence of any other event with respect to, any such plan which could reasonably be expected to result in any liability
of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.


 


5.9
Use of Proceeds. Borrower shall use the proceeds of the Term Loan Advance solely to repay existing Indebtedness and as working capital
and to fund its general business requirements and not for personal, family, household or agricultural purposes.


 


5.10
Full Disclosure. No written representation, warranty or other statement of Borrower in any certificate or written statement given
to Lender, as of the date such representation, warranty, or other statement was made, taken together with all such written certificates
and written statements given to Lender, contains any untrue statement of a material fact or omits to state a material fact necessary
to make the statements contained in the certificates or statements not materially misleading (it being recognized by Lender that the
projections and forecasts provided by Borrower in good faith and based upon reasonable assumptions are not viewed as facts and that actual
results during the period or periods covered by such projections and forecasts may differ from the projected or forecasted results).


 


5.11
Definition of “Knowledge.” For purposes of the Loan Documents, whenever a representation or warranty is made to
Borrower’s knowledge or awareness, to the “best of” Borrower’s knowledge, or with a similar qualification, knowledge
or awareness means the actual knowledge, after reasonable investigation, of the Responsible Officers.


 




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6
AFFIRMATIVE COVENANTS


 


From
and after the Term Loan Advance Date, Borrower shall do all of the following:


 


6.1
Government Compliance.


 


(a)
Maintain its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain
qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a Material Adverse Change.
Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances and regulations to which it is subject, noncompliance
with which could have a material adverse effect on Borrower’s business.


 


(b)
Obtain all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to which
it is a party and the grant of a security interest to Lender in all of its property. Borrower shall promptly provide copies of any such
obtained Governmental Approvals to Lender.


 


6.2
Financial Statements, Reports, Certificates. Deliver to Lender:


 


(a)
Monthly Financial Statements. As soon as available, but no later than thirty (30) days after the last day of each month, a company
prepared consolidated balance sheet and income statement covering Parent’s consolidated operations for such month, certified by
a Responsible Officer and in a form acceptable to Lender;


 


(b)
Other Statements. Within five (5) days of delivery, copies of all statements, reports and notices made available to Borrower’s
security holders or to any holders of Subordinated Debt or Senior Debt;


 


(c)
SEC Filings. Within five (5) days of filing, copies of all periodic and other reports, proxy statements and other materials filed
by Parent with the SEC, any Governmental Authority succeeding to any or all of the functions of the SEC or with any national securities
exchange, or distributed to its shareholders, as the case may be. Documents required to be delivered pursuant to the terms hereof (to
the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and if so delivered,
shall be deemed to have been delivered on the date on which Parent posts such documents, or provides a link thereto, on Parent’s
website on the Internet at Parent’s website address;


 


(d)
Legal Action Notice. A prompt report of any legal actions pending or threatened in writing against Borrower or any of its Subsidiaries
that could result in damages or costs to Borrower or any of its Subsidiaries of, individually or in the aggregate, One Hundred Thousand
Dollars ($100,000) or more;


 


(e)
Intellectual Property Notice. Prompt written notice of (i) any material change in the composition of the Intellectual Property,
(ii) the registration of any copyright, including any subsequent ownership right of Borrower in or to any copyright, patent or trademark
not shown in the IP Security Agreement, and (iii) Borrower’s knowledge of an event that could reasonably be expected to materially
and adversely affect the value of the Intellectual Property;


 


(f)
Annual Budgets. As soon as available but at least 45 calendar days after to the commencement of each fiscal year of Parent, Parent’s
annual board–approved budget for such fiscal year, in form and detail satisfactory to the Lender;


 


(g)
Tax Returns. Within thirty (30) days after filing, copies of Parent’s income tax returns, together with all schedules, exhibits
and statements to such returns; and


 


(h)
Other Financial Information. Promptly, copies of any notices required to be delivered pursuant to the Senior Debt and other financial
information reasonably requested by Lender from time to time.


 


6.3
Taxes; Pensions. Timely file, and require each of its Subsidiaries to timely file, all required tax returns and reports and timely
pay, and require each of its Subsidiaries to timely pay, all foreign, federal, state and local taxes, assessments, deposits and contributions
owed by Borrower and each of its Subsidiaries, except for deferred payment of any taxes contested pursuant to the terms of Section 5.8
hereof, and shall deliver to Lender, on demand, appropriate certificates attesting to such payments, and pay all amounts necessary to
fund all present pension, profit sharing and deferred compensation plans in accordance with their terms.


 




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6.4
Insurance. Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry
and location and as Lender may reasonably request. Insurance policies shall be in a form, with companies, and in amounts that are satisfactory
to Lender. All property policies shall have a lender’s loss payable endorsement showing Lender as lender loss payee and waive subrogation
against Lender. All liability policies shall show, or have endorsements showing, Lender as an additional insured. All policies (or the
loss payable and additional insured endorsements) shall provide that the insurer shall give Lender at least thirty (30) days’ notice
(or ten (10) days in the case of nonpayment of premium) before canceling, amending, or declining to renew its policy. At Lender’s
request, Borrower shall deliver certified copies of policies and evidence of all premium payments. Proceeds payable under any policy
shall, at Lender’s option, be payable to Lender on account of the Obligations. If Borrower fails to obtain insurance as required
under this Section 6.4 or to pay any amount or furnish any required proof of payment to third persons and Lender, Lender may make all
or part of such payment or obtain such insurance policies required in this Section 6.4, and take any action under the policies Lender
deems prudent.


 


6.5
Operating Accounts. Upon Lender’s request following the occurrence and during the continuance of an Event of Default, for each
Collateral Account that Borrower or Guarantors at any time maintains, Borrower or Guarantors, as applicable, shall cause the applicable
bank or financial institution (other than Lender) at or with which any Collateral Account is maintained to execute and deliver a Control
Agreement or other appropriate instrument with respect to such Collateral Account to perfect Lender’s Lien in such Collateral Account
in accordance with the terms hereunder which Control Agreement may not be terminated without the prior written consent of Lender. The
provisions of the previous sentence shall not apply to deposit accounts exclusively used for payroll, payroll taxes and other employee
wage and benefit payments to or for the benefit of Borrower’s or each Guarantor’s employees and identified to Lender by Borrower
or Guarantors, as applicable, as such.


 


6.6
Protection and Registration of Intellectual Property Rights.


 


(a)
(i) Protect, defend and maintain the validity and enforceability of its material Intellectual Property; (ii) promptly advise Lender in
writing of material infringements of its material Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s
or any Guarantor’s business to be abandoned, forfeited or dedicated to the public without Lender’s written consent.


 


(b)
If Borrower or any Guarantor (i) obtains any Patent, registered Trademark, registered Copyright, registered mask work, or any pending
application for any of the foregoing, whether as owner, licensee or otherwise, or (ii) applies for any Patent or the registration of
any Trademark, then Borrower or such Guarantor, as applicable, shall, together with the next set of monthly financial statements delivered
pursuant to Section 6.2(a), provide written notice thereof to Lender and shall execute such intellectual property security agreements
and other documents and take such other actions as Lender shall reasonably request in its good faith business judgment to perfect and
maintain a second priority perfected security interest in favor of Lender in such property. If Borrower or any Guarantor decides to register
any Copyrights or mask works in the United States Copyright Office, such Borrower or Guarantor shall: (x) provide Lender with at least
fifteen (15) days prior written notice of Borrower’s or such Guarantor’s intent to register such Copyrights or mask works
together with a copy of the application it intends to file with the United States Copyright Office (excluding exhibits thereto); (y)
execute an intellectual property security agreement and such other documents and take such other actions as Lender may reasonably request
in its good faith business judgment to perfect and maintain a second priority perfected security interest in favor of Lender in the Copyrights
or mask works intended to be registered with the United States Copyright Office; and (z) record such intellectual property security agreement
with the United States Copyright Office contemporaneously with filing the Copyright or mask work application(s) with the United States
Copyright Office. Borrower or Guarantor, as applicable, shall promptly provide to Lender copies of all applications that it files for
Patents or for the registration of Trademarks, Copyrights or mask works, together with evidence of the recording of the intellectual
property security agreement necessary for Lender to perfect and maintain a second priority perfected security interest in such property.


 


(c)
Provide written notice to Lender within ten (10) days of entering or becoming bound by any Restricted License (other than over-the-counter
software that is commercially available to the public). Borrower and Guarantors shall take such steps as Lender reasonably requests to
obtain the consent of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral”
and for Lender to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any such
Restricted License, whether now existing or entered into in the future, and (ii) Lender to have the ability in the event of a liquidation
of any Collateral to dispose of such Collateral in accordance with Lender’s rights and remedies under this Agreement and the other
Loan Documents.


 




    	-8-



     


    

 


6.7
Litigation Cooperation. From the Term Loan Advance Date and continuing through the termination of this Agreement, make available
to Lender, without expense to Lender, Borrower, Guarantors and their officers, employees and agents and Borrower’s and each Guarantor’s
books and records, to the extent that Lender may deem them reasonably necessary to prosecute or defend any third-party suit or proceeding
instituted by or against Lender with respect to any Collateral or relating to Borrower or Guarantors.


 


6.8
Access to Collateral; Books and Records. Allow Lender, or its agents, at reasonable times, on one (1) Business Days’ notice
(provided no notice is required if an Event of Default has occurred and is continuing), to inspect the Collateral and audit and copy
Borrower’s or each Guarantor’s Books. The foregoing inspections and audits shall be at Borrower’s expense; provided,
that Lender shall not conduct more than one such inspection at borrower’s expense during any calendar year unless an Event of Default
has occurred and is continuing.


 


6.9
Formation or Acquisition of Subsidiaries. Notwithstanding and without limiting the negative covenants contained in Sections 7.3 and
7.7 hereof, at the time that Borrower or any Guarantor forms any direct or indirect Subsidiary or acquires any direct or indirect Subsidiary
after the Effective Date, Borrower and such Guarantor shall, upon Lender’s request, (a) cause such new Subsidiary to provide to
Lender a joinder to this Agreement to become a co-borrower hereunder or a Guaranty to become a Guarantor hereunder, together with such
appropriate financing statements and/or Control Agreements (at Lender’s request), all in form and substance reasonably satisfactory
to Lender (including being sufficient to grant Lender a second priority Lien (subject to Permitted Liens) in and to the assets of such
newly formed or acquired Subsidiary), (b) provide to Lender appropriate certificates and powers and financing statements, pledging all
of the direct or beneficial ownership interest in such new Subsidiary, in form and substance satisfactory to Lender; and (c) provide
to Lender all other documentation in form and substance satisfactory to Lender, including one or more opinions of counsel satisfactory
to Lender, which in its opinion is appropriate with respect to the execution and delivery of the applicable documentation referred to
above; provided that, any Person who guarantees any Indebtedness incurred by Borrower pursuant to any Senior Debt shall be required to
become a Guarantor hereunder. Any document, agreement, or instrument executed or issued pursuant to this Section 6.9 shall be a Loan
Document.


 


6.10
Further Assurances. Execute any further instruments and take further action as Lender reasonably requests to perfect or continue
Lender’s Lien in the Collateral or to effect the purposes of this Agreement. Deliver to Lender, within five (5) days after the
same are sent or received, copies of all correspondence, reports, documents and other filings with any Governmental Authority regarding
compliance with or maintenance of Governmental Approvals or Requirements of Law or that could reasonably be expected to have a material
adverse effect on any of the Governmental Approvals or otherwise on the operations of Borrower or any of its Subsidiaries.


 


7
NEGATIVE COVENANTS


 


From
and after the Term Loan Advance Date, Borrower shall not do any of the following without Lender’s prior written consent:


 


7.1
Dispositions. Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively, “Transfer”), or permit
any of its Subsidiaries to Transfer, all or any part of its business or property, except for Permitted Transfers


 


7.2
Changes in Business, Management, Control, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any
business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related or incidental
thereto and reasonable extensions thereof; (b) liquidate or dissolve (provided, that any Subsidiary of Parent may liquidate or dissolve
into Parent); or (c) fail to provide notice to Lender of any Key Person departing from or ceasing to be employed by Borrower within ten
(10) Business Days after his or her departure from Borrower; or (d) permit or suffer any Change in Control.


 




    	-9-



     


    

 


Borrower
shall not, without at least thirty (30) days prior written notice to Lender: (1) add any new offices or business locations, including
warehouses (unless such new offices or business locations contain less than One Hundred Thousand Dollars ($100,000) in Borrower’s
assets or property) or deliver any portion of the Collateral valued, individually or in the aggregate, in excess of One Hundred Thousand
Dollars ($100,000) to a bailee at a location other than to a bailee and at a location already disclosed in the Perfection Certificate,
(2) change its jurisdiction of organization, (3) change its organizational structure or type, (4) change its legal name, or (5) change
any organizational number (if any) assigned by its jurisdiction of organization. Upon Lender’s request, if Borrower intends to
add any new offices or business locations, including warehouses, containing in excess of One Hundred Thousand Dollars ($100,000) of Borrower’s
assets or property, then Borrower the landlord of any such new offices or business locations, including warehouses, shall execute and
deliver a landlord consent in form and substance reasonably satisfactory to Lender. Upon Lender’s request, if Borrower intends
to deliver any portion of the Collateral valued, individually or in the aggregate, in excess of One Hundred Thousand Dollars ($100,000)
to a bailee, and Lender and such bailee are not already parties to a bailee agreement governing both the Collateral and the location
to which Borrower intends to deliver the Collateral, then such bailee shall execute and deliver a bailee agreement in form and substance
reasonably satisfactory to Lender.


 


7.3
Mergers or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person (other
than Parent), or acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of
another Person, except where (i) the transactions meet the definition of a Permitted Acquisition and such transactions do not in the
aggregate exceed One Million Dollars ($1,000,000) during any fiscal year, (ii) no Event of Default has occurred, is continuing or would
exist after giving effect to such transactions, (iii) such transactions do not result in a Change in Control, and (iv) a Borrower is
the surviving entity; provided, that a Subsidiary may merge or consolidate into another Subsidiary or into Borrower or acquire the assets
of another Subsidiary.


 


7.4
Indebtedness. Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.


 


7.5
Encumbrance. Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including
the sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, permit any Collateral not to be subject
to the first priority security interest granted herein (subject only to Permitted Liens that may have superior priority to Lender’s
Lien under this Agreement), or enter into any agreement, document, instrument or other arrangement (except with or in favor of Lender)
with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or any Subsidiary from assigning, mortgaging,
pledging, granting a security interest in or upon, or encumbering any of Borrower’s or any Subsidiary’s Intellectual Property,
except as is otherwise permitted in Section 7.1 hereof and the definition of “Permitted Liens” herein.


 


7.6
Reserved.


 


7.7
Distributions; Investments. (a) Pay any dividends or make any distribution or payment or redeem, retire or purchase any capital stock
provided that (i) Borrower may convert any of its convertible securities into other securities pursuant to the terms of such convertible
securities or otherwise in exchange thereof, and (ii) Borrower may pay dividends solely in common stock; except that such Borrower may
(x) repurchase the Equity Interests of former employees pursuant to equity repurchase agreements as long as an Event of Default does
not exist prior to such repurchase or would not exist after giving effect to such repurchase, and (y) repurchase the Equity Interests
of former employees pursuant to equity repurchase agreements by the cancellation of indebtedness owed by such former employees to such
Borrower regardless of whether an Event of Default exists; or (b) directly or indirectly make any Investment other than Permitted Investments,
or permit any of its Subsidiaries to do so. Nothing in this Section 7.7 shall restrict the conversion of preferred Equity Interests to
common Equity Interests, notwithstanding any deemed dividend which may arise in connection therewith. Nothing in this Section 7.7 shall
restrict or otherwise prohibit dividends or distributions from any Subsidiary to a Borrower


 


7.8
Transactions with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of
Borrower, except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are
no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person.


 


7.9
Subordinated Debt. (a) Make or permit any payment on any Subordinated Debt, except under the terms of the subordination, intercreditor,
or other similar agreement to which such Subordinated Debt is subject, or (b) amend any provision in any document relating to the Subordinated
Debt which would increase the amount thereof or adversely affect the subordination thereof to Obligations owed to Lender.


 




    	-10-



     


    

 


7.10
Compliance. Become an “investment company” or a company controlled by an “investment company”, under the
Investment Company Act of 1940, as amended, or undertake as one of its important activities extending credit to purchase or carry margin
stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System), or use the proceeds of any Term Loan Advance
for that purpose; fail to meet the minimum funding requirements of ERISA, permit a Reportable Event or Prohibited Transaction, as defined
in ERISA, to occur; fail to comply with the Federal Fair Labor Standards Act or violate any other law or regulation, if the violation
could reasonably be expected to have a material adverse effect on Borrower’s business, or permit any of its Subsidiaries to do
so; withdraw or permit any Subsidiary to withdraw from participation in, permit partial or complete termination of, or permit the occurrence
of any other event with respect to, any present pension, profit sharing and deferred compensation plan which could reasonably be expected
to result in any liability of Borrower, including any liability to the Pension Benefit Guaranty Corporation or its successors or any
other governmental agency.


 


8
EVENTS OF DEFAULT


 


Any
one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:


 


8.1
Payment Default. Borrower fails to (a) make any payment of principal on the Term Loan Advance on its due date or (b) pay any other
Obligations within five (5) Business Days after such Obligations are due and payable. During the cure period, the failure to make or
pay any payment specified under clause (b) hereunder is not an Event of Default;


 


8.2
Covenant Default. Borrower fails or neglects to perform, keep, or observe any other term, provision, condition, covenant or agreement
contained in this Agreement or any Loan Documents, and as to any default (other than those specified in this Section 8) under such other
term, provision, condition, covenant or agreement that can be cured, has failed to cure the default within fifteen (15) days after the
occurrence thereof; provided, however, that if the default cannot by its nature be cured within the fifteen (15) day period or cannot
after diligent attempts by Borrower be cured within such fifteen (15) day period, and such default is likely to be cured within a reasonable
time, then Borrower shall have an additional period (which shall not in any case exceed thirty (30) days) to attempt to cure such default,
and within such reasonable time period the failure to cure the default shall not be deemed an Event of Default.


 


8.3
Material Adverse Change. Lender determines that a Material Adverse Change has occurred.


 


8.4
Attachment; Levy; Restraint on Business.


 


(a)
(i) The service of process seeking to attach, by trustee or similar process, any funds of Borrower or of any entity under the control
of Borrower (including a Subsidiary) on deposit or otherwise maintained with Lender or any Lender Affiliate, or (ii) a notice of lien
or levy is filed against any of Borrower’s assets by any government agency, and the same under subclauses (i) and (ii) hereof are
not, within ten (10) days after the occurrence thereof, discharged or stayed (whether through the posting of a bond or otherwise); or


 


(b)
(i) any material portion of Borrower’s assets is attached, seized, levied on, or comes into possession of a trustee or receiver,
or (ii) any court order enjoins, restrains, or prevents Borrower from conducting any material part of its business;


 


8.5
Insolvency (a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b)
Borrower begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within
sixty (60) days;


 


8.6
Other Agreements. There is, under any agreement to which Borrower or any Guarantor is a party with a third party or parties, (a)
any default resulting in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness
in an amount individually or in the aggregate in excess of Five Hundred Thousand Dollars ($500,000); (b) any default by Borrower or Guarantor,
the result of which could have a material adverse effect on Borrower’s or any Guarantor’s business or (c) any default under
the Senior Debt;


 


8.7
Judgments. One or more final judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate,
of at least Two Hundred Fifty Thousand Dollars ($250,000) (not covered by independent third-party insurance as to which liability has
been accepted by such insurance carrier) shall be rendered against Borrower and the same are not, within thirty (30) days after the entry
thereof, discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration
of any such stay;


 




    	-11-



     


    

 


8.8
Misrepresentations. Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later
in this Agreement, any Loan Document or in any writing delivered to Lender or to induce Lender to enter this Agreement or any Loan Document,
and such representation, warranty, or other statement is incorrect in any material respect when made;


 


8.9
Subordinated Debt. Any document, instrument, or agreement evidencing any Subordinated Debt shall for any reason be revoked or invalidated
or otherwise cease to be in full force and effect, any Person shall be in breach thereof or contest in any manner the validity or enforceability
thereof or deny that it has any further liability or obligation thereunder, or the Obligations shall for any reason be subordinated or
shall not have the priority contemplated by this Agreement or any applicable subordination or intercreditor agreement;


 


8.10
Guaranty. (a) Any guaranty of any Obligations terminates or ceases for any reason to be in full force and effect; (b) any Guarantor
does not perform any obligation or covenant under any guaranty of the Obligations; (c) any circumstance described in Sections 8.3, 8.4,
8.5, 8.7, or 8.8 occurs with respect to any Guarantor, (d) the liquidation, winding up, or termination of existence of any Guarantor;
or (e) (i) a material impairment in the perfection or priority of Lender’s Lien in the collateral provided by Guarantor or in the
value of such collateral or (ii) a material adverse change in the general affairs, management, results of operation, condition (financial
or otherwise) or the prospect of repayment of the Obligations occurs with respect to any Guarantor; or


 


8.11
Governmental Approvals. Any Governmental Approval shall have been (a) revoked, rescinded, suspended, modified in an adverse manner
or not renewed in the ordinary course for a full term or (b) subject to any decision by a Governmental Authority that designates a hearing
with respect to any applications for renewal of any of such Governmental Approval or that could result in the Governmental Authority
taking any of the actions described in clause (a) above, and such decision or such revocation, rescission, suspension, modification or
non-renewal (i) has, or could reasonably be expected to have, a Material Adverse Change, or (ii) adversely affects the legal qualifications
of Borrower or any of its Subsidiaries to hold such Governmental Approval in any applicable jurisdiction and such revocation, rescission,
suspension, modification or non-renewal could reasonably be expected to affect the status of or legal qualifications of Borrower or any
of its Subsidiaries to hold any Governmental Approval in any other jurisdiction.


 


9
LENDER’S RIGHTS AND REMEDIES


 


9.1
Rights and Remedies. While an Event of Default occurs and continues, Lender, in accordance with the Subordination Agreement, may,
without notice or demand, do any or all of the following:


 


(a)
declare all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 occurs all Obligations are immediately
due and payable without any action by Lender);


 


(b)
stop advancing money or extending credit for Borrower’s benefit under this Agreement or under any other agreement between Borrower
and Lender;


 


(c)
settle or adjust disputes and claims directly with Account Debtors for amounts on terms and in any order that Lender considers advisable,
notify any Person owing Borrower money of Lender’s security interest in such funds, and verify the amount of such account;


 


(d)
make any payments and do any acts it considers necessary or reasonable to protect the Collateral and/or its security interest in the
Collateral. Borrower shall assemble the Collateral if Lender requests and make it available as Lender designates. Lender may enter premises
where the Collateral is located, take and maintain possession of any part of the Collateral, and pay, purchase, contest, or compromise
any Lien which appears to be prior or superior to its security interest and pay all expenses incurred. Borrower grants Lender a license
to enter and occupy any of its premises, without charge, to exercise any of Lender’s rights or remedies;


 


(e)
apply to the Obligations any (i) balances and deposits of Borrower it holds, or (ii) any amount held by Lender owing to or for the credit
or the account of Borrower;


 


(f)
ship, reclaim, recover, store, finish, maintain, repair, prepare for sale, advertise for sale, and sell the Collateral. Lender is hereby
granted a non-exclusive, royalty-free license or other right to use, without charge, Borrower’s labels, Patents, Copyrights, mask
works, rights of use of any name, trade secrets, trade names, Trademarks, and advertising matter, or any similar property as it pertains
to the Collateral, in completing production of, advertising for sale, and selling any Collateral and, in connection with Lender’s
exercise of its rights under this Section, Borrower’s rights under all licenses and all franchise agreements inure to Lender’s
benefit;


 




    	-12-



     


    

 


(g)
place a “hold” on any account maintained with Lender and/or deliver a notice of exclusive control, any entitlement order,
or other directions or instructions pursuant to any Control Agreement or similar agreements providing control of any Collateral;


 


(h)
demand and receive possession of Borrower’s Books; and


 


(i)
exercise all rights and remedies available to Lender under the Loan Documents or at law or equity, including all remedies provided under
the Code (including disposal of the Collateral pursuant to the terms thereof).


 


9.2
Power of Attorney. Borrower hereby irrevocably appoints Lender as its lawful attorney-in-fact, exercisable upon the occurrence and
during the continuance of an Event of Default, to: (a) endorse Borrower’s name on any checks or other forms of payment or security;
(b) sign Borrower’s name on any invoice or bill of lading for any Account or drafts against Account Debtors; (c) settle and adjust
disputes and claims about the Accounts directly with Account Debtors, for amounts and on terms Lender determines reasonable; (d) make,
settle, and adjust all claims under Borrower’s insurance policies; (e) pay, contest or settle any Lien, charge, encumbrance, security
interest, and adverse claim in or to the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge
the same; and (f) transfer the Collateral into the name of Lender or a third party as the Code permits. Borrower hereby appoints Lender
as its lawful attorney-in-fact to sign Borrower’s name on any documents necessary to perfect or continue the perfection of Lender’s
security interest in the Collateral regardless of whether an Event of Default has occurred until all Obligations have been satisfied
in full and Lender is under no further obligation to make Term Loan Advances hereunder. Lender’s foregoing appointment as Borrower’s
attorney in fact, and all of Lender’s rights and powers, coupled with an interest, are irrevocable until all Obligations have been
fully repaid and performed and Lender’s obligation to provide Term Loan Advances terminates.


 


9.3
Protective Payments. If Borrower fails to obtain the insurance called for by Section 6.4 or fails to pay any premium thereon or fails
to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Lender may obtain such insurance
or make such payment, and all amounts so paid by Lender are Lender Expenses and immediately due and payable and secured by the Collateral.
Lender will make reasonable efforts to provide Borrower with notice of Lender obtaining such insurance at the time it is obtained or
within a reasonable time thereafter. No payments by Lender are deemed an agreement to make similar payments in the future or Lender’s
waiver of any Event of Default.


 


9.4
Application of Payments and Proceeds Upon Default. If an Event of Default has occurred and is continuing, Lender may apply any funds
in its possession, whether from Borrower account balances, payments, proceeds realized as the result of any collection of Accounts or
other disposition of the Collateral, or otherwise, to the Obligations in such order as Lender shall determine in its sole discretion.
Any surplus shall be paid to Borrower or other Persons legally entitled thereto; Borrower shall remain liable to Lender for any deficiency.
If Lender, in its good faith business judgment, directly or indirectly enters into a deferred payment or other credit transaction with
any purchaser at any sale of Collateral, Lender shall have the option, exercisable at any time, of either reducing the Obligations by
the principal amount of the purchase price or deferring the reduction of the Obligations until the actual receipt by Lender of cash therefor.


 


9.5
Lender’s Liability for Collateral. So long as Lender complies with reasonable practices regarding the safekeeping of the Collateral
in the possession or under the control of Lender, Lender shall not be liable or responsible for: (a) the safekeeping of the Collateral;
(b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any carrier,
warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral.


 


9.6
No Waiver; Remedies Cumulative. Lender’s failure, at any time or times, to require strict performance by Borrower of any provision
of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Lender thereafter to demand strict performance
and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by the party granting the waiver and then
is only effective for the specific instance and purpose for which it is given. Lender’s rights and remedies under this Agreement
and the other Loan Documents are cumulative. Lender has all rights and remedies provided under the Code, by law, or in equity. Lender’s
exercise of one right or remedy is not an election and shall not preclude Lender from exercising any other remedy under this Agreement
or other remedy available at law or in equity, and Lender’s waiver of any Event of Default is not a continuing waiver. Lender’s
delay in exercising any remedy is not a waiver, election, or acquiescence.


 




    	-13-



     


    

 


9.7
Demand Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment
at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees
held by Lender on which Borrower is liable.


 


10
NOTICES


 


All
notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document must
be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt and three
(3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested, with proper postage
prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business Day after deposit with a
reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger, all of which shall be addressed
to the party to be notified and sent to the address, facsimile number, or email address indicated below. Lender or Borrower may change
its mailing or electronic mail address or facsimile number by giving the other party written notice thereof in accordance with the terms
of this Section 10.


 


	 	If
    to Borrower:	c/o
    Interpace Biosciences, Inc.
	 	 	Morris
    Corporate Center 1, Building C
	 	 	300
    Interpace Parkway
	 	 	Parsippany,
    NJ 07054
	 	 	Attn:
    Thomas Freeburg, CFO
	 	 	Email:
    tfreeburg@interpace.com
	 	 	 
	 	If
    to Lender:	BroadOak
    Fund V, L.P.
	 	 	4800
    Montgomery Lane, Suite 230
	 	 	Bethesda,
    MD 20814
	 	 	Attention:
    Manager
	 	 	Email:
    compliance@broadoak.com


 


11
CHOICE OF LAW, VENUE, JURY TRIAL WAIVER, AND JUDICIAL REFERENCE


 


New
York law governs the Loan Documents without regard to principles of conflicts of law. Borrower, Lender each submit to the exclusive jurisdiction
of the State and Federal courts in New York, New York; provided, however, that nothing in this Agreement shall be deemed to operate to
preclude Lender from bringing suit or taking other legal action in any other jurisdiction to realize on the Collateral or any other security
for the Obligations, or to enforce a judgment or other court order in favor of Lender. Borrower expressly submits and consents in advance
to such jurisdiction in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based
upon lack of personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable
relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process
issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered or certified
mail addressed to Borrower at the address set forth in, or subsequently provided by Borrower in accordance with, Section 10 of this Agreement
and that service so made shall be deemed completed upon the earlier to occur of Borrower’s actual receipt thereof or three (3)
days after deposit in the U.S. mails, proper postage prepaid.


 


TO
THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, BORROWER AND LENDER EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION
ARISING OUT OF OR BASED UPON THIS AGREEMENT, THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF
DUTY AND ALL OTHER CLAIMS. THIS WAIVER IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED
THIS WAIVER WITH ITS COUNSEL.


 




    	-14-



     


    

 


12
GENERAL PROVISIONS


 


12.1
Successors and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower
may not assign this Agreement or any rights or obligations under it without Lender’s prior written consent (which may be granted
or withheld in Lender’s discretion). Lender has the right, with the consent of Borrower (provided, that no such notice or consent
shall be required if an Event of Default has occurred and is continuing), to sell, transfer, assign, negotiate, or grant participation
in all or any part of, or any interest in, Lender’s obligations, rights, and benefits under this Agreement and the other Loan Documents.


 


12.2
Indemnification. Borrower agrees to indemnify, defend and hold Lender and its directors, officers, employees, agents, attorneys,
or any other Person affiliated with or representing Lender (each, an “Indemnified Person”) harmless against: (a) all
obligations, demands, claims, and liabilities (collectively, “Claims”) claimed or asserted by any other party in connection
with the transactions contemplated by the Loan Documents; and (b) all losses or expenses (including Lender Expenses) in any way suffered,
incurred, or paid by such Indemnified Person as a result of, following from, or arising from transactions between Lender and Borrower
(including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified Person’s
gross negligence or willful misconduct.


 


12.3
Time of Essence. Time is of the essence for the performance of all Obligations in this Agreement.


 


12.4
Severability of Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability
of any provision.


 


12.5
Reserved.


 


12.6
Amendments in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or
termination of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set
forth in a writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing,
no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate as,
or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be limited to
the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether similar or
dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents represent the
entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements, understandings, representations,
warranties, and negotiations between the parties about the subject matter of the Loan Documents merge into the Loan Documents.


 


12.7
Counterparts. This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each
of which, when executed and delivered, is an original, and all taken together, constitute one Agreement.


 


12.8
Survival. All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated
pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their terms,
are to survive the termination of this Agreement) have been paid in full and satisfied. The obligation of Borrower in Section 12.2 to
indemnify Lender shall survive until the statute of limitations with respect to such claim or cause of action shall have run.


 


12.9
Confidentiality. In handling any confidential information, Lender shall exercise the same degree of care that it exercises for its
own proprietary information, but disclosure of information may be made: (a) to Lender’s Subsidiaries or Affiliates; (b) to prospective
transferees or purchasers of any interest in the Term Loan Advance (provided, however, Lender shall obtain any prospective transferee’s
or purchaser’s agreement to the terms of this provision); (c) as required by law, regulation, subpoena, or other order (provide,
that in any such instance, Lender will provide Borrower with notice as soon as reasonably practicable of such requirement so that Borrower
may seek a protective order or other appropriate remedy, at the Borrower’s expense, and if such protective order or other remedy
is not obtained, Lender agrees that it will disclose only that portion of the confidential information which it is advised by counsel
is legally required to be disclosed); (d) to Lender’s regulators or as otherwise required in connection with Lender’s examination
or audit; (e) as required in exercising remedies under the Loan Documents; and (f) to third-party service providers of Lender so long
as such service providers have executed a confidentiality agreement with Lender with terms no less restrictive than those contained herein.
Confidential information does not include information that is either: (i) in the public domain or in Lender’s possession when disclosed
to Lender, or becomes part of the public domain after disclosure to Lender; or (ii) disclosed to Lender by a third party if Lender does
not know that the third party is prohibited from disclosing the information.


 




    	-15-



     


    

 


Lender
may use confidential information for the development of databases, reporting purposes, and market analysis so long as such confidential
information is aggregated and anonymized prior to distribution unless otherwise expressly permitted by Borrower. The provisions of the
immediately preceding sentence shall survive the termination of this Agreement.


 


12.10
Attorneys’ Fees, Costs and Expenses. In any action or proceeding between Borrower and Lender arising out of or relating to
the Loan Documents, the prevailing party shall be entitled to recover its reasonable attorneys’ fees and other costs and expenses
incurred, in addition to any other relief to which it may be entitled.


 


12.11
Electronic Execution of Documents. The words “execution,” “signed,” “signature” and words of
like import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based
recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation, any
state law based on the Uniform Electronic Transactions Act.


 


12.12
Captions. The headings used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.


 


12.13
Construction of Agreement. The parties mutually acknowledge that they and their attorneys have participated in the preparation and
negotiation of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused
the uncertainty to exist.


 


12.14
Relationship. The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement. The parties
do not intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different
from those of parties to an arm’s-length contract.


 


12.15
Third Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or remedies
under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors and
assigns; (b) relieve or discharge the obligation or liability of any person not an express party to this Agreement; or (c) give any person
not an express party to this Agreement any right of subrogation or action against any party to this Agreement.


 


13
DEFINITIONS


 


13.1
Definitions. As used in the Loan Documents, the word “shall” is mandatory, the word “may” is permissive,
the word “or” is not exclusive, the words “includes” and “including” are not limiting, the singular
includes the plural, and numbers denoting amounts that are set off in brackets are negative. As used in this Agreement, the following
capitalized terms have the following meanings:


 


“Account”
is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without
limitation, all accounts receivable and other sums owing to Borrower.


 


“Account
Debtor” is any “account debtor” as defined in the Code with such additions to such term as may hereafter be made.


 


“Advance
Form” is that certain form attached hereto as Exhibit B.


 


“Affiliate”
is, with respect to any Person, each other Person that owns or controls directly or indirectly the Person, any Person that controls or
is controlled by or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners
and, for any Person that is a limited liability company, that Person’s managers and members.


 




    	-16-



     


    

 


“Agreement”
is defined in the preamble hereof.


 


“Borrower”
is defined in the preamble hereof.


 


“Borrower’s
Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding Borrower’s
assets or liabilities, the Collateral, business operations or financial condition, and all computer programs or storage or any equipment
containing such information.


 


“Business
Day” is any day that is not a Saturday, Sunday or federal holiday.


 


“Cash
Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any agency
or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper maturing no more
than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings Group or Moody’s
Investors Service, Inc.; (c) Lender’s certificates of deposit issued maturing no more than one (1) year after issue; and (d) money
market funds at least ninety-five percent (95%) of the assets of which constitute Cash Equivalents of the kinds described in clauses
(a) through (c) of this definition.


 


“Change
in Control” means any event, transaction, or occurrence as a result of which (a) any “person” (as such term is
defined in Sections 3(a)(9) and 13(d)(3) of the Exchange Act), a trustee or other fiduciary holding securities under an employee benefit
plan of Borrower, is or becomes a beneficial owner (within the meaning Rule 13d-3 promulgated under the Exchange Act), directly or indirectly,
of securities of Parent, representing more than fifty percent (50%) of the combined voting power of Parent’s then outstanding securities;
(b) Borrower ceases to own 100% of the voting securities of its Subsidiaries, except in a transaction permitted hereunder; or (c) any
sale of all or substantially all of the assets of Parent, except in a transaction permitted hereunder.


 


“Code”
is the Uniform Commercial Code, as the same may, from time to time, be enacted and in effect in the State of New York; provided, that,
to the extent that the Code is used to define any term herein or in any Loan Document and such term is defined differently in different
Articles or Divisions of the Code, the definition of such term contained in Article or Division 9 shall govern; provided further, that
in the event that, by reason of mandatory provisions of law, any or all of the attachment, perfection, or priority of, or remedies with
respect to, Lender’s Lien on any Collateral is governed by the Uniform Commercial Code in effect in a jurisdiction other than the
State of New York, the term “Code” shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction
solely for purposes of the provisions thereof relating to such attachment, perfection, priority, or remedies and for purposes of definitions
relating to such provisions.


 


“Collateral”
is any and all properties, rights and assets of Borrower described on Exhibit A.


 


“Collateral
Account” is any Deposit Account, Securities Account, or Commodity Account.


 


“Commodity
Account” is any “commodity account” as defined in the Code with such additions to such term as may hereafter be
made.


 


“Contingent
Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness,
lease, dividend, letter of credit or other obligation of another such as an obligation, in each case, directly or indirectly guaranteed,
endorsed, co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any
obligations for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or
commodity swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against
fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include
endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the primary
obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability for it determined
by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee or other support arrangement.


 




    	-17-



     


    

 


“Control
Agreement” is any control agreement entered into among the depository institution at which Borrower maintains a Deposit Account
or the securities intermediary or commodity intermediary at which Borrower maintains a Securities Account or a Commodity Account, Borrower,
and Lender pursuant to which Lender obtains control (within the meaning of the Code) over such Deposit Account, Securities Account, or
Commodity Account.


 


“Copyrights”
are any and all copyright rights, copyright applications, copyright registrations and like protections in each work or authorship and
derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.


 


“Credit
Party” means the Borrower, the Guarantors and their respective successors and permitted assigns.


 


“Default
Rate” is defined in Section 2.2(b).


 


“Deposit
Account” is any “deposit account” as defined in the Code with such additions to such term as may hereafter be made.


 


“Dollars,”
“dollars” or use of the sign “$” means only lawful money of the United States and not any other
currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted into lawful
money of the United States.


 


“Effective
Date” is defined in the preamble hereof.


 


“Equipment”
is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes without
limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of the foregoing.


 


“Equity
Interests” mean, with respect to any Person, the capital stock, partnership, membership or limited liability company interest,
or other equity securities or equity ownership interest of such Person.


 


“ERISA”
is the Employee Retirement Income Security Act of 1974, and its regulations.


 


“Event
of Default” is defined in Section 8.


 


“Exchange
Act” is the Securities Exchange Act of 1934, as amended.


 


“Funding
Date” is any date on which a Term Loan Advance is made to or for the account of Borrower which shall be a Business Day.


 


“GAAP”
is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of the American
Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board or in such other
statements by such other Person as may be approved by a significant segment of the accounting profession, which are applicable to the
circumstances as of the date of determination.


 


“General
Intangibles” is all “general intangibles” as defined in the Code in effect on the date hereof with such additions
to such term as may hereafter be made, and includes without limitation, all Intellectual Property, claims, income and other tax refunds,
security and other deposits, payment intangibles, contract rights, options to purchase or sell real or personal property, rights in all
litigation presently or hereafter pending (whether in contract, tort or otherwise), insurance policies (including without limitation
key man, property damage, and business interruption insurance), payments of insurance and rights to payment of any kind.


 


“Governmental
Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration,
filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.


 


“Governmental
Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory organization.


 




    	-18-



     


    

 


“Guarantor”
is any Person providing a Guaranty in favor of Lender.


 


“Guaranty”
is any guarantee of all or any part of the Obligations, as the same may from time to time be amended, restated, modified or otherwise
supplemented.


 


“Indebtedness”
is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations for
surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital lease obligations,
and (d) Contingent Obligations.


 


“Indemnified
Person” is defined in Section 12.2.


 


“Insolvency
Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy or
insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors, or proceedings
seeking reorganization, arrangement, or other relief.


 


“Intellectual
Property” means, with respect to any Person, all of such Person’s right, title, and interest in and to the following:


 


(a)
its Copyrights, Trademarks and Patents;


 


(b)
any and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating
manuals;


 


(c)
any and all source code;


 


(d)
any and all design rights which may be available to a Borrower;


 


(e)
any and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the obligation,
to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above; and


 


(f)
all amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.


 


“Interest
Rate” means nine percent (9.00%) per annum.


 


“Inventory”
is all “inventory” as defined in the Code in effect on the date hereof with such additions to such term as may hereafter
be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials, work in process
and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody or possession or
in transit and including any returned goods and any documents of title representing any of the above.


 


“Investment”
is any beneficial ownership interest in any Person (including stock, partnership interest or other securities), and any loan, advance
or capital contribution to any Person.


 


“IP
Security Agreement” is that certain Intellectual Property Security Agreement executed and delivered by Borrower to Lender dated
as of the Term Loan Advance Date.


 


“Key
Person” is Borrower’s Chief Executive Officer.


 


“Lender”
is defined in the preamble hereof.


 


“Lender
Expenses” are all audit fees and expenses, costs, and expenses (including reasonable attorneys’ fees and expenses) for
preparing, amending, negotiating, administering, defending and enforcing the Loan Documents (including, without limitation, those incurred
in connection with appeals or Insolvency Proceedings) or otherwise incurred with respect to Borrower or any other Credit Party.


 




    	-19-



     


    

 


“Lien” is
a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily incurred
or arising by operation of law or otherwise against any property.


 


“Loan
Documents” are, collectively, this Agreement, the Perfection Certificate, each Advance Form, the Subordination Agreement, the
IP Security Agreement, the Pledge Agreement, each Guaranty, any Control Agreement, any pledge agreement, any subordination agreement,
any note, or notes or guaranties executed by Borrower or any Guarantor, and any other present or future agreement between Borrower any
Guarantor and/or for the benefit of Lender in connection with this Agreement, all as amended, restated, or otherwise modified.


 


“Material
Adverse Change” is (a) a material impairment in the perfection or priority of Lender’s Lien in the Collateral or in the
value of such Collateral, taken as a whole; (b) a material adverse change in the business, operations, or financial condition of Parent
and its Subsidiaries, taken as a whole; (c) a material impairment of the prospect of repayment of any portion of the Obligations by the
Borrowers, taken as a whole, or (d) a material adverse effect on the enforceability or validity of this Agreement or the other Loan Documents.


 


“Obligations”
are any Credit Party’s obligations to pay when due any debts, principal, interest, the Terminal Payment, Lender Expenses and other
amounts any Credit Party owes Lender now or later, whether under this Agreement, the Loan Documents, or otherwise, including debts, liabilities,
or obligations of any Credit Party assigned to Lender, and to perform any Credit Party’s duties under the Loan Documents.


 


“Operating
Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of such Person’s
state of formation on a date that is no earlier than 30 days prior to the Effective Date, and, (a) if such Person is a corporation, its
bylaws in current form, (b) if such Person is a limited liability company, its limited liability company agreement (or similar agreement),
and (c) if such Person is a partnership, its partnership agreement (or similar agreement), each of the foregoing with all current amendments
or modifications thereto.


 


“Patents”
means all patents, patent applications and like protections including without limitation improvements, divisions, continuations, renewals,
reissues, extensions and continuations-in-part of the same.


 


“Payment
Date” means the first calendar date of each month.


 


“Perfection
Certificate” is defined in Section 5.1.


 


“Permitted
Acquisition” shall mean any acquisition by a Borrower or any of its Subsidiaries of all or substantially all of the assets
of another Person, or of a division or line of business of another Person, or any Equity Interests of another Person which satisfies
and/or is conducted in accordance with the following requirements:


 


(a)
such acquisition is of a business that is in the same line of business as a Borrower;


 


(b)
if such acquisition is structured as an acquisition of the Equity Interests of any Person, then the Person so acquired shall become a
wholly-owned direct Subsidiary of such Borrower or of its Subsidiary and such Borrower or the applicable Subsidiary shall cause such
acquired Person to comply with Section 6.9 hereof or be merged with and into such Borrower or such Subsidiary (and, in the case of such
Borrower, with such Borrower being the surviving entity);


 


(c)
if such acquisition is structured as the acquisition of assets, such assets shall be acquired directly by such Borrower or such Subsidiary
and shall be free and clear of all liens;


 


(d)
such Borrower shall have delivered to Lender not less than thirty (30) (or such shorter period of time agreed to by Lender) nor more
than ninety (90) days prior to the closing date of such acquisition, notice of such acquisition together with true, correct and complete
copies of: pro forma financial statements, copies of all material documents relating to such acquisition (including the acquisition agreement
and all related documents), and historical financial information (including income statements, balance sheets and cash flows) covering
at least three (3) complete fiscal years of the acquisition target, if available, and a quality of earnings report, in form and from
a third party satisfactory to date; and


 




    	-20-



     


    

 


(e)
the board of directors (or other Person(s) exercising similar functions) of the seller of the assets or issuer of the Equity Interests
being acquired shall not have disapproved such transaction or recommended that such transaction be disapproved.


 


“Permitted
Divestiture” means the sale of all or substantially all of the assets or Equity Interests of Interpace Pharma Solutions, Inc.


 


“Permitted
Indebtedness” is:


 


(a)
Borrower’s Indebtedness to Lender under this Agreement and the other Loan Documents;


 


(b)
Indebtedness existing on the Effective Date and shown on the Perfection Certificate (excluding, however, Indebtedness permitted under
clause (g) of this definition);


 


(c)
Subordinated Debt;


 


(d)
the Senior Debt;


 


(e)
unsecured Indebtedness to trade creditors incurred in the ordinary course of business;


 


(f)
Indebtedness incurred as a result of endorsing negotiable instruments received in the ordinary course of business;


 


(g)
Indebtedness secured by Liens permitted under clause (c) of the definition of “Permitted Liens” hereunder, provided that
the principal amount outstanding of all Indebtedness under this clause (g) shall not exceed One Hundred Thousand Dollars ($100,000) at
any time outstanding;


 


(h)
other unsecured Indebtedness not otherwise permitted by Section 7.4 not exceeding $250,000 in the aggregate amount outstanding at any
time; and


 


(i)
extensions, refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (h) above, provided
that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon Borrower
or its Subsidiary, as the case may be.


 


“Permitted
Investments” are:


 


(a)
Investments (including, without limitation, Subsidiaries) existing on the Effective Date and shown on the Perfection Certificate;


 


(b)
Investments consisting of Cash Equivalents;


 


(c)
Investments consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary
course of Borrower;


 


(d)
Investments consisting of Collateral Accounts;


 


(e)
Investments accepted in connection with Transfers permitted by Section 7.1;


 


(f)
Investments (including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in
settlement of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;
and


 


(g)
Investments consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not
Affiliates, in the ordinary course of business.


 




    	-21-



     


    

 


“Permitted
Liens” are:


 


(a)
Liens existing on the Effective Date and shown on the Perfection Certificate or arising under this Agreement and the other Loan Documents;


 


(b)
Liens for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in good
faith and for which Borrower maintains adequate reserves on its Books, provided that no notice of any such Lien has been filed
or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted thereunder;


 


(c)
purchase money Liens and equipment Liens (including capitalized leases) (i) on Equipment acquired or held by Borrower incurred for financing
the acquisition of the Equipment or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements
and the proceeds of the Equipment.


 


(d)
Liens of carriers, warehousemen, suppliers, or other Persons that are possessory in nature arising in the ordinary course of business
so long as such Liens attach only to Inventory and which are not delinquent or remain payable without penalty or which are being contested
in good faith and by appropriate proceedings which proceedings have the effect of preventing the forfeiture or sale of the property subject
thereto;


 


(e)
Liens to secure payment of workers’ compensation, employment insurance, old-age pensions, social security and other like obligations
incurred in the ordinary course of business (other than Liens imposed by ERISA);


 


(f)
leases or subleases of real property granted in the ordinary course of Borrower’s business (or, if referring to another Person,
in the ordinary course of such Person’s business), and leases, subleases, non-exclusive licenses or sublicenses of personal property
(other than Intellectual Property) granted in the ordinary course of Borrower’s business (or, if referring to another Person, in
the ordinary course of such Person’s business), if the leases, subleases, licenses and sublicenses do not prohibit granting Lender
a security interest therein;


 


(g)
non-exclusive license of Intellectual Property granted to third parties in the ordinary course of business;


 


(h)
Liens arising from attachments or judgments, orders, or decrees in circumstances not constituting an Event of Default under Sections
8.4 and 8.7;


 


(i)
Liens in favor of other financial institutions arising in connection with Borrower’s deposit and/or securities accounts held at
such institutions;


 


(j)
Liens securing Senior Debt; and


 


(k)
other Liens securing obligations not to exceed One Hundred Thousand Dollars ($100,000) at any time outstanding.


 


“Permitted
Transfer” means the conveyance, sale, lease, transfer or disposition by a Borrower or any Subsidiary of:


 


(a)
Inventory in the ordinary course of business;


 


(b)
Non-exclusive licenses and similar arrangements for the use of the property of such Borrower or its Subsidiaries in the ordinary course
of business;


 


(c)
Worn-out, obsolete, or surplus Equipment;


 


(d)
pursuant to the Permitted Divestiture;


 


(e)
in connection with Permitted Liens and Permitted Investments; or


 




    	-22-



     


    

 


(f)
other assets of a Borrower or its Subsidiaries that do not in the aggregate exceed One Hundred Thousand Dollars ($100,000) during any
fiscal year.


 


“Person”
is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated organization,
association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or government agency.


 


“Pledge
Agreement” means that certain Pledge Agreement, dated as of the Term Loan Advance Date, by and among Borrower and Lender.


 


“Registered
Organization” is any “registered organization” as defined in the Code with such additions to such term as may hereafter
be made.


 


“Requirement
of Law” is as to any Person, the organizational or governing documents of such Person, and any law (statutory or common), treaty,
rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding
upon such Person or any of its property or to which such Person or any of its property is subject.


 


“Responsible
Officer” is any of the Chief Executive Officer, President, and Chief Financial Officer and of Borrower.


 


“Restricted
License” is any material license or other agreement with respect to which Borrower is the licensee (a) that prohibits or otherwise
restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or any other property,
or (b) for which a default under or termination of could interfere with the Lender’s right to sell any Collateral.


 


“SEC”
shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority.


 


“Securities
Account” is any “securities account” as defined in the Code with such additions to such term as may hereafter be
made.


 


“Senior
Debt” means all Indebtedness of the Borrower to (a) Comerica Bank, as evidenced by that certain Loan and Security Agreement,
dated as of October 13, 2021, in an aggregate principal amount of up to Seven Million Five Hundred Thousand Dollars ($7,500,000) (plus
the amount of any protective advances made in accordance with the terms thereof) and (b) any refinancing or replacement Indebtedness,
or any additional Indebtedness, that in each case is subject to a Subordination Agreement in form and substance reasonably satisfactory
to Lender; provided that the aggregate principal amount of all Senior Debt, taken together with the aggregate principal amount of any
Indebtedness incurred pursuant to clause (g) of the definition of “Permitted Indebtedness,” shall not exceed Seven Million
Five Hundred Thousand Dollars ($7,500,000) at any time outstanding (plus the amount of any protective advances made in accordance with
the terms thereof).


 


“Subordinated
Debt” is indebtedness incurred by Borrower subordinated to all of Borrower’s now or hereafter indebtedness to Lender
(pursuant to a subordination, intercreditor, or other similar agreement in form and substance satisfactory to Lender entered into between
Lender and the other creditor), on terms acceptable to Lender; provided that the Obligations shall not constitute Subordinated Debt.


 


“Subordination
Agreement” means collectively, that certain intercreditor agreement, dated as of the Term Loan Advance Date, by and between
Lender and Comerica Bank, and any subsequent subordination, intercreditor or similar agreement by and between Lender and the representative(s)
with respect to other Senior Debt, in each case as each may be amended from time to time in accordance with the provisions thereof.


 


“Subsidiary”
is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other ownership
interests having ordinary voting power (other than stock or such other ownership interests having such power only by reason of the happening
of a contingency) to elect a majority of the board of directors or other managers of such corporation, partnership or other entity are
at the time owned, or the management of which is otherwise controlled, directly or indirectly through one or more intermediaries, or
both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary herein shall be a reference to a Subsidiary
of Borrower.


 




    	-23-



     


    

 


“Term
Loan Advance” is defined in Section 2.1.1(a).


 


“Term
Loan Advance Date” means the date on which the Term Loan Advance is advanced to Borrower in accordance with Section 2.1.1.


 


“Term
Loan Maturity Date” is the earlier to occur of (a) October 31, 2024 and (b) a Change in Control.


 


“Terminal
Multiple” means, (a) if a Change in Control occurs on or prior to the first anniversary of the Term Loan Advance Date, fifteen
hundredths (0.15), (b) if a Change in Control occurs after the first anniversary of the Term Loan Advance Date but on or prior to the
second anniversary of the Term Loan Advance Date, two tenths (0.20) and (c) upon the earlier of the Term Loan Maturity Date or a Change
in Control to occur after the second anniversary of the Term Loan Advance Date, three tenths (0.30).


 


“Terminal
Payment” is a payment (in addition to and not in substitution for the regular monthly payments of principal plus accrued interest)
due on the Term Loan Maturity Date, equal to the aggregate original principal amount of the Term Loan Advance made by Lender to Borrower
multiplied by the Terminal Multiple.


 


“Trademarks”
means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same and like
protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.


 


“Transfer”
is defined in Section 7.1.


 


[Signature
page follows.]


 




    	-24-



     


    

 


IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date.


 


	BORROWER:	 
	 	 
	INTERPACE
    BIOSCIENCES, INC.	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:	President	 
	 	 	 
	INTERPACE
    DIAGNOSTICS CORPORATION	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:	President	 
	 	 	 
	INTERPACE
    DIAGNOSTICS, LLC	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:	President	 
	 	 	 
	INTERPACE
    PHARMA SOLUTIONS, INC.	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:	President	 
	 	 	 
	LENDER:	 
	 	 
	BROADOAK
    FUND V, L.P.	 
	 	 	 
	By	 	 
	Name:	William
    Snider	 
	Title:	Manager	 


 


[Signature page to Loan and Security Agreement]


 




    	 



     


    

 


EXHIBIT
A – COLLATERAL DESCRIPTION


 


The
Collateral consists of all of Borrower’s right, title and interest in and to the following personal property:


 


All
goods, Accounts (including health-care receivables), Equipment, Inventory, contract rights or rights to payment of money, leases, license
agreements, franchise agreements, General Intangibles (including Intellectual Property) commercial tort claims, documents, instruments
(including any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, certificates of deposit, fixtures,
letters of credit rights (whether or not the letter of credit is evidenced by a writing), securities, and all other investment property,
supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever located; and


 


all
Borrower’s Books relating to the foregoing, and any and all claims, rights and interests in any of the above and all substitutions
for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds
of any or all of the foregoing.


 




    	 



     


    

 


EXHIBIT
B – ADVANCE FORM


 


October
29, 2021


 


The
undersigned, being the duly elected and acting Chief Executive Officer of INTERPACE BIOSCIENCES, INC., a Delaware corporation (“Parent”),
INTERPACE DIAGNOSTICS CORPORATION, a Delaware corporation (“Diagnostics Corporation”), INTERPACE DIAGNOSTICS, LLC, a Delaware
limited liability company (“Diagnostics”) and INTERPACE PHARMA SOLUTIONS, INC., a Delaware corporation (“Pharma Solutions”,
and together with Parent, Diagnostics Corporation, and Diagnostics, each and together, jointly and severally, “Borrower”),
does hereby certify to BROADOAK FUND V, L.P. (“Lender”) in connection with that certain Loan and Security Agreement dated
as of October 29, 2021, by and among Borrower and Lender (the “Loan Agreement”; with other capitalized terms used below having
the meanings ascribed thereto in the Loan Agreement) that:


 


1.
The representations and warranties in the Loan Agreement are true, accurate, and complete in all material respects on the date hereof
and on the Term Loan Advance Date; provided, however, that such materiality qualifier shall not be applicable to any representations
and warranties that already are qualified or modified by materiality in the text thereof; and provided, further that those representations
and warranties expressly referring to a specific date are be true, accurate and complete in all material respects as of such date.


 


2.
No Event of Default has occurred and is continuing or will result from the Term Loan Advance.


 


3.
There has not been a Material Adverse Change.


 


4.
The aggregate net proceeds of the Term Loan Advance shall be transferred to the following account:


 


	 	Account
    Name:	_____________________________
	 	Bank
    Name:	_____________________________
	 	Bank
    Address:	_____________________________
	 	Account
    Number:	_____________________________
	 	ABA
    Number:	_____________________________


 


[remainder
of page intentionally left blank]


 




    	 



     


    

 


Dated
of the date first set forth above.


 


	BORROWER:	 
	 	 
	INTERPACE
    BIOSCIENCES, INC.	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	INTERPACE
    DIAGNOSTICS CORPORATION	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	INTERPACE
    DIAGNOSTICS, LLC	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:	Chief
    Executive Officer	 
	 	 	 
	INTERPACE
    PHARMA SOLUTIONS, INC.	 
	 	 	 
	By:	 	 
	Name:	Thomas
    W. Burnell	 
	Title:
    	Chief
    Executive Officer	 


 


[Signature
Page to Advance Form]