NORTH
    CAROLINA	LOAN
    NUMBER 6000436000 
	 	 
	Iredell
    County	 


 


NOTE
MODIFICATION AGREEMENT


 


	$1,000,000.00	 	$1,000,694.44	 	        4-27-2017
	Original
    Amount of Note	 	Present
    Balance of Note	 	Original
    Date of Note


 


THIS
AGREEMENT made and entered into on April 18, 2018 by and between Convergent Media Systems Corporation [Herein after
called “Maker(s)”]; blueharbor bank a North Carolina banking Corporation (hereinafter called “Bank”);
and (hereinafter called Guarantors”) whether one or more, and whether surety, guarantor or endorser:


 


W
I T N E S S E T H


 


WHEREAS,
Maker(s) heretofore executed a note in favor of Bank, which note is more particularly identified above: and WHEREAS, Makers(s)
has requested that said note be modified to the limited extent as is hereinafter set forth; and, WHEREAS, Bank has agreed to such
modification; and, WHEREAS, Guarantor, if any, has also agreed to said modification and enters into this Agreement for the purpose
of specifically assenting to the terms hereof; NOW THEREFORE, by mutual agreement of the parties and in mutual consideration of
the premises and the additional sum of One Dollar ($1.00) and other good and valuable considerations, each to the other parties
paid, the receipt of which and the adequacy of which is hereby acknowledged, the parties hereto agree that said note is modified
and amended as indicated hereinafter:


 


[  ]
INTEREST RATE (Select One)


 





	 	[  ]	Effective
    ________________ the interest rate is changed from _______ to ______ % per annum.
	 	 	 
	 	[  ]	Effective
    ___________ the interest rate shall be_______% per annum above _________Rate (the “Index Rate”), as same
    fluctuates from time to     time, which     rate currently is _______%, and increases or decreases in the total rate due to
    changes in the “Index     Rate” shall become     effective on the calendar day such change takes place. The total
    rate will not go above ______     or below________%.
	 	 	 
	 	[  ]	DEFAULT
    INTEREST RATE. Upon the occurrence of an event of default, and once notice of default is given to me,  the interest rate
    upon the unpaid balance of this loan shall be ______ % per year.
	 	 	 
	 	[  ]	REMEDIES.
    If the Maker(s) is in default on said note the Bank has, but is not limited to, the right to change the interest  rate
    on said note to the Default Rate. By selecting this remedy, the Bank does not give up its right to later use any other remedy,
    including without limitation, the remedies provided for in said note.
	 	 	
	 	[  ]	POST-JUDGEMENT
    INTEREST. You agree that post-judgment interest shall accrue at the Default Rate.
	 	 	 
	 	[  ]	Other
    ______________________________________________________________________________
	 	 	___________________________________________________________________________________




 


[  ]
PAYMENT TERMS (Select One)


 





	 	[  ]	All
    remaining installment payments are extended for _________ month (s). The next payment is due ________________,
     _________.
	 	 	 
	 	[  ]	Payable in one single payment due on ______________________, ____________ 
	 	 	 
	 	[  ]	Payable
    in equal consecutive___________ payments of __________ beginning ______________. 
	 	 	(Monthly, Quarterly, etc.)
	 	[  ]	The final payment of the entire balance of principal and interest will be due____________.
	 	 	 
	 	[X]	Other: Borrower will pay regular monthly payments of all accrued unpaid interest due as of each payment date, beginning 5-10-2018, with all subsequent interest payments to be due on the same day of each month after that until maturity on 5-10-2019. 




 


[  ]
COLLATERAL (Select One)


 





	 	[  ]	The following described collateral is substituted for the original collateral:
	 	 	____________________________________________________________________
	 	 	 
	 	[  ]	All
collateral described in the Security Agreement is hereby released as security.
	 	 	 
	 	[  ]	The following described collateral is hereby released as collateral but any other collateral described in the Security Agreement is retained: __________________________________________________
	 	 	_______________________________________________________________________________
	 	 	 
	 	[  ]	If marked, the aforesaid note hereby modified is secured by a deed of trust or deeds of trust recorded in Book __________  ________, at Page ___________, Book _________, at Page __________, Book _________, at Page ____________,  ____________________ County Registry, which deed (s) of trust are modified to comply with the modifications made by  the Note Modification Agreement.
	 	 	 
	 	[  ]	Other ___________________________________________________________________
	 	 	_______________________________________________________________________________



 





[  ] OTHER MODIFICATIONS




 


	 	 	_______________________________________________________________________________
	 	 	_______________________________________________________________________________




 




    	 	 	 



    	 	 	 



    


 


CREDIT
INSURANCE DISCLOSURES: If installment payments are extended, any credit insurance written on the note is NOT
Extended. On a single payment loan that is extended, any credit insurance written on the note is NOT extended unless an
application is made for a new credit insurance policy at the renewal of the note with payment of the applicable
premium.


 


If
the note being modified by this Agreement is signed by more than one person, the modified note shall be the JOINT and SEVERAL
obligation of all signers, and each provision of the note as modified shall apply to each and all signers and the property
and liability of each and all of them.


 


The
agreement herein contained shall bind and inure to the benefit of the successors in interest hereto, and it is expressly
understood and agreed that this Agreement is a modification only and not a novation. It is also expressly understood and
agreed that except for the above stated modification (s), said note, the deed (s) of trust, and/or other security agreements
and the terms and conditions thereof, shall be and remain in full force and effect and that this Note Modification Agreement
shall not release or affect the liability of any guarantors, sureties, or endorsers on said note.


 


Financial
Information: During the term of the Loan the Bank requires that the Borrower(s) and/or Guarantor(s) provide certain periodic
financial information in a form and content acceptable to the Bank. If the information is not submitted as required, the Bank
may increase the contract interest rate by two percent (2%) per annum until the required information is submitted in a form and
content acceptable to the Bank. Borrower(s) and/or Guarantor(s) shall be required to provide the following financial information
within thirty (30) days of the date of the original request.


 


	 	a)	Each
    Borrower’s Annual Federal Income Tax Return, with all schedules, signed and addressed to blueharbor bank, within 120
    days of Borrower’s fiscal year end, absent an extension filed with the Internal Revenue Service. A certificate documenting
    the extension must be provided to blueharbor bank within thirty (30) days of the date of the original request.
	 	b)	Each
    Guarantor’s Annual Personal Financial Statement to be submitted no less frequently than every 12 months.
	 	c)	Each
Guarantor’s Annual Federal Income Tax Return, with all schedules, signed and addressed to blueharbor bank within 120 days
of Borrower’s fiscal year end, absent an extension filed with the Internal Revenue Service. A certificate documenting the
extension must be provided to blueharbor bank within thirty (30) days of the date of the original request.
	 	d)	The
    Borrower(s) and/or Guarantor(s) shall also submit such additional financial information in a form and content acceptable to
    the Bank as may be reasonably requested from time to time.


 


IN
TESTIMONY WHEREOF, each individual Maker or Guarantor has hereunto caused this instrument to be executed, has set his/her hand
and adopted as his/her seal the Word “SEAL” appearing beside his/her name, this the day and year first above written.


 


	Ballantyne
    Strong Inc	 	 	Convergent
    Corporation	 
	 	 	 	 	 
	/s/
    D. Kyle Cerminara	(SEAL)	 	/s/
    D. Kyle Cerminara 	(SEAL)
	D
    Kyle Cerminara, CEO	 	 	D
    Kyle Cerminara, CEO	 


 


IN
TESTIMONY WHEREOF, the corporate Maker or Guarantor has hereunto caused this instrument to be executed in its corporate name,
set his/her hand and adopted as his/her seal the Word “SEAL” appearing beside by its _______________________ President,
attested by its _______________________ his/her name, Secretary, and its corporate seal to be hereto affixed, by order of its’
Board of Directors, First duly given, this the day and year first above written.


 


	Convergent
    Media Systems Corporation	 	 	 
	(Corporate Name)	 	 	 
	 	 	 	 	 
	BY:	/s/
    D. Kyle Cerminara                         	 	 	(SEAL)
	 	D
    Kyle Cerminara, CEO	 	 	 
	 	 	 	 	 
	ATTEST: ________________________________	 	 	(SEAL)


 




    	 	 	 



    	 	 	 



    


 


	 	IN
TESTIMONY WHEREOF, the Bank has caused this Note Modification Agreement to be executed in its corporate name by the undersigned
officer.


 


	 	blueharbor bank
	 	 	 
	 	BY:	/s/
    Chris L. Nichols, SVP
	 	 	        Name
    & Title


 





	SEAL-STAMP	North
    Carolina, ______________________________ County.
	 	 
	 	I,
    ______________ a Notary Public of the County and State aforesaid, certify that  ________________________________________________,
    personally appeared before me this day and acknowledged the execution of the foregoing instrument.
	 	 
	 	Witness
    my hand and official stamp or seal, this ___________ day of _______________, _________.




 


	 	My commission expires:_____________	_____________
    Notary Public


 


	SEAL-STAMP	North
    Carolina, _______________________________County.
	 	 
	 	I,
    _________________ a Notary Public of the County and State aforesaid, certify that
     __________________________________________, personally came before me this  day and acknowledged that ___ he is
    __________________________________ Secretary of _________________________________________________ a North
    Carolina corporation, and that by authority duly given and as the act of the  corporation, the foregoing instrument was
    signed in its name by its ________________  President, sealed with its corporate seal and attested by
    ___________________________  as its Secretary.
	 	 
	 	Witness
    my hand and official stamp or seal, this __________day of ________________, _________________.


 


	 	My commission expires:_____________	_____________
    Notary Public


 


The
foregoing Certificate (s) of _______________________________________________________________________


is/are
certified to be correct. This instrument and this certificate are duly registered at the date and time and in the Book and Page
shown on the first page hereof.


 


____________________________________
Register of Deeds For __________________________County


 


By
_________________________________________________________ Deputy/Assistant-Register of Deeds.