# EDGAR Filing Document

**Accession Number:** 0001045942
**File Stem:** 0001437749-26-014595
**Filing Date:** 2026-5
**Character Count:** 839005
**Document Hash:** 07c9f4dabf6601a35215c4d72daf04c6
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001437749-26-014595.hdr.sgml**: 20260504

**ACCESSION NUMBER**: 0001437749-26-014595

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 27

**CONFORMED PERIOD OF REPORT**: 20260429

**ITEM INFORMATION**: Entry into a Material Definitive Agreement

**ITEM INFORMATION**: Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant

**ITEM INFORMATION**: Unregistered Sales of Equity Securities

**ITEM INFORMATION**: Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers: Compensatory Arrangements of Certain Officers

**ITEM INFORMATION**: Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year

**ITEM INFORMATION**: Regulation FD Disclosure

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20260504

**DATE AS OF CHANGE**: 20260504

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Track Group, Inc.
- **CENTRAL INDEX KEY:** 0001045942
- **STANDARD INDUSTRIAL CLASSIFICATION:** COMMUNICATIONS EQUIPMENT, NEC [3669]
- **ORGANIZATION NAME:** 04 Manufacturing
- **EIN:** 870543981
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0930

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-23153
- **FILM NUMBER:** 26935943

**BUSINESS ADDRESS:**
- **STREET 1:** 200 E. 5TH AVENUE SUITE 100
- **CITY:** NAPERVILLE
- **STATE:** IL
- **ZIP:** 60563
- **BUSINESS PHONE:** 877-260-2010

**MAIL ADDRESS:**
- **STREET 1:** 200 E. 5TH AVENUE SUITE 100
- **CITY:** NAPERVILLE
- **STATE:** IL
- **ZIP:** 60563

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** SecureAlert, Inc.
- **DATE OF NAME CHANGE:** 20100216

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** REMOTE MDX INC
- **DATE OF NAME CHANGE:** 20010807

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** VOLU SOL INC
- **DATE OF NAME CHANGE:** 19970910

?xml version='1.0' encoding='ASCII'? trkg20260430_8k.htm

--09-30

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, DC 20549**

**FORM 8-K**

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of the**

**Securities Exchange Act of 1934**

Date of report (Date of earliest event reported): **<u>April 29, 2026</u>**

Commission File Number: **<u>0-23153</u>**

---

| |
|:---|
| **Track Group, Inc.** |
| (Exact name of registrant as specified in its charter.) |

---

---

| | |
|:---|:---|
| **Delaware** | **87-0543981** |
| (State or other jurisdiction<br> of incorporation or organization) | (IRS Employer<br> Identification No.) |

---

**<u>200 E 5th Ave, Suite 100,</u> <u>Naperville,</u> <u>Illinois</u> <u>60563</u>**

(Address of principal executive offices)

**<u>(877)</u> <u>260-2010</u>**

(Registrant's Telephone number)

**<u>Not Applicable</u>**

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act: None.

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR 230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR 240.12b-2)

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

------

**Item 1.01. Entry into a Material Definitive Agreement.**

*Securities Purchase Agreement*

On April 30, 2026, Track Group, Inc., a Delaware corporation (the "*Company*"), entered into Securities Purchase Agreements (the "*Purchase Agreement*") with certain accredited investors (the "*Investors*"), for the private placement (the "*Private Placement*") of (i) 29,471,429 shares of the Company's common stock, par value $0.0001 per share ("*Common Stock*") (the "*PIPE Shares*") at a price per PIPE Share of $0.35, and (ii) 750,000 warrants to purchase shares of Common Stock (the "*PIPE Warrants*"). for aggregate gross proceeds of approximately $10,315,000. The PIPE Shares and PIPE Warrants sold in the Offering are sometimes hereafter referred to as, the "*Securities.*" The Company intends to use the proceeds from the Offering for repayment of existing indebtedness, working capital and general corporate purposes.

The PIPE Warrants are exercisable immediately, expire ten years from the date of issuance, and have an initial exercise price of $0.35 per share (the "*Initial Exercise Price*"), subject to adjustment in the event of any Dilutive Issuance (as defined in the Warrant), or any stock splits, stock dividends, recapitalizations, and similar events.

The Purchase Agreement contains representations and warranties of the Company and the Purchaser and customary covenants which are typical for transactions of this type. In addition, the Purchase Agreement contains customary conditions precedent to the Purchaser's obligation to purchase the Securities, and representations and warranties of the Company and the Purchasers customary for transactions of this type. The Purchase Agreement obligates the Company to indemnify the Investors and various related parties for certain losses including those resulting from (i) any misrepresentation or breach of any representation or warranty made by the Company, (ii) any breach of any obligation of the Company, and (iii) certain claims by third parties. The Purchase Agreements contain representations and warranties that the parties made to, and solely for the benefit of, the other signatories to the Purchase Agreements in the context of all of the terms and conditions thereof and in the context of the specific relationship between the parties to the Purchase Agreements. The provisions of such Purchase Agreements, including the representations and warranties contained therein, are not for the benefit of any party other than the party signatories thereto and are not intended for investors and the public to obtain factual information about the current state of affairs of the parties to such Purchase Agreements. Rather, investors and the public should refer to other disclosures contained in the Company's filings with the U.S. Securities and Exchange Commission.

Pursuant to the Purchase Agreement, certain investors have the right to designate three (3) directors for election to the Company's Board of Directors so long as such party owns at least 30% of the shares of Common Stock such party acquired pursuant to the Purchase Agreement and the transactions contemplated hereby, for an aggregate total of six (6) directors. See Item 5.02 of this Current Report on Form 8-K for information on the director designees.

The Securities were issued pursuant to the exemption from the registration requirements of the Securities Act of 1933, as amended (the "*Securities Act*"), pursuant to Section 4(a)(2) of the Securities Act and/or Rule 506(b) of Regulation D promulgated thereunder because, among other things, the transaction did not involve a public offering, the investors are accredited investors, the investors are purchasing the securities for investment and not for resale and the Company took appropriate measures to restrict the transfer of the securities. The securities have not been registered under the Securities Act and may not be sold in the United States absent registration or an exemption from registration. This Current Report on Form 8-K shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.

*Credit Facility*

On April 30, 2026, the Company and certain subsidiaries of the Company (together with the Company, collectively, the "*Borrowers*") entered into a Credit Agreement (the "*Credit Agreement*") by and among the Borrowers, the lenders from time to time party thereto (the "*Lenders*"), and Chatham Capital Management, LLC, as administrative agent for the Lenders (the "*Administrative Agent*"). Pursuant to the Credit Agreement, the Lenders extended a credit facility in the maximum aggregate principal amount of $24.0 million, consisting of (a) a term loan (the "*Term Loan*") in the principal amount of $21.0 million, which was funded in full on April 30, 2026, (b) a revolving line of credit in the principal amount of $2.0 million and (c) an interest line loan facility (the "*Interest Line Loan Facility*") in the principal amount of $1.0 million.

------

The Credit Agreement has a maturity date of April 30, 2031. Loans outstanding under the Credit Agreement will bear interest at an overall rate of 13.5% per annum, with 11.0% paid in cash and 2.5% paid-in-kind. If the Borrowers elect to borrow on the Interest Line Loan Facility to make cash payments of interest on the loans to the Lenders in any month, the overall rate of interest shall increase to 15.5% per annum for any such month, with 11.0% paid in cash and 4.5% paid-in-kind. Principal payments on the Term Loan and borrowings under the Interest Line Loan Facility are required to be made in monthly installments, commencing on June 1, 2028, at a rate of 5% per annum of the outstanding principal amount thereof.

The Credit Agreement contains both affirmative and negative covenants, including, without limitation, a minimum EBITDA covenant tested on quarterly basis, a minimum fixed charge coverage ratio financial covenant tested on quarterly basis, a maximum total leverage ratio financial covenant tested on quarterly basis, a maximum capital expenditures covenant tested on quarterly basis, a minimum 30-day average liquidity covenant tested on quarterly basis and limitations on indebtedness, liens and investments. The Credit Agreement also provides for customary events of default.

In connection with the Credit Agreement, on April 30, 2026, the Borrowers entered into a Guaranty and Collateral Agreement with the Administrative Agent (the "*Guaranty and Collateral Agreement*"), pursuant to which each of the Borrowers granted to the Administrative Agent a first-priority perfected lien upon substantially all of the assets of the Borrowers to secure the obligations of the Borrowers under the Credit Agreement.

On the Closing Date, in connection with the Interest Line Loan Facility, the Company issued to the Lenders a warrant to purchase 1,079,108 shares of the Company's Common Stock (the "*Lender Warrant*"). The Lender Warrants are exercisable immediately upon issuance, expire ten years from the date of issuance, and have an initial exercise price of $0.0001 per share (the "*Initial Exercise Price*"), subject to adjustment in the event of any Dilutive Issuance (as defined in the Warrant), or any stock splits, stock dividends, recapitalizations, and similar events.

*ADSS Letter Agreement*

In connection with the Private Placement and the Credit Facility, the Company entered into that certain Letter Agreement ADS Securities, LLC ("*ADSS*"), whereby, the Company paid ADSS $4,375,000 out of the funds of the Private Placement and/or the Credit Agreement.

*Registration Rights Agreement*

In connection with the closing of the Private Placement and the entrance into the Credit Facility, the Company, the Investors and the Administrative Agent have entered into a registration rights agreement dated April 30, 2026 (the "*Registration Rights Agreement*"), pursuant to which the Company will agree to file a registration statement with the Securities and Exchange Commission (the "*SEC*") on or prior to the 60th calendar day following the closing date of the Private Placement for purposes of registering the resale of the PIPE Shares, the shares of Common Stock underlying the PIPE Warrants, and the shares of Common Stock underlying the Lender Warrants (the "*Registration Statement*"), to use commercially reasonable efforts to have such Registration Statement declared effective within the time period set forth in the Registration Rights Agreement, and to keep the Registration Statement effective until the date that all registrable securities covered by the Registration Statement (i) have been sold, thereunder or pursuant to Rule 144, or (ii) may be sold without volume or manner-of-sale restrictions pursuant to Rule 144 and without the requirement for the Company to be in compliance with the current public information requirement under Rule 144.

*Warrant Agency Agreement*

On April 30, 2026, the Company entered into a warrant agency agreement with the Company's transfer agent, Equiniti Trust Company, LLC, which will also act as the warrant agent for the Company, setting forth the terms and conditions of the PIPE Warrants and Lender Warrants (the "*Warrant Agency Agreement*").

*Amended Facility Payoff Agreement*

On April 30, 2026, the Company and Conrent Invest S.A., acting on behalf of its compartment, "Safety 2" ("*Conrent*"), entered into an Amended Facility Payoff Agreement ("*Payoff Agreement*"). Pursuant to the Payoff Agreement, the Company agreed to pay $23,520,000 to Conrent in settlement of the outstanding $42.864 million unsecured debt facility payable by the Company to Conrent, issued pursuant to a Facility Agreement originally executed by and between the parties on December 30, 2013, as amended May 30, 2014, June 30, 2015, July 19, 2018, February 24, 2019, January 10, 2020, December 21, 2020 and April 26, 2023 (the "*Amended Facility Agreement*") with a maturity date of July 1, 2027. The Payoff Agreement terminates and cancels the Facilities Agreement and releases and discharges the Company from all present or future, actual or contingent liabilities, obligations and guarantees created, evidenced or conferred by, and all claims, charges, liens, security interests, actions, suit, accounts and demands arising under or in any way related to the Facilities Agreement and/or or any other Facility Document.

------

The foregoing descriptions of the Form of PIPE Warrant, Form of Lender Warrant, Credit Agreement, Guaranty and Collateral Agreement, Form of Purchase Agreement, Form of Registration Rights Agreement, , Letter Agreement and Amended Facility Payoff Agreement do not purport to be complete and are qualified in their entirety by reference to Form of PIPE Warrant, Form of Lender Warrant, Form of Purchase Agreement, Form of Registration Rights Agreement, Credit Agreement, Guaranty and Collateral Agreement, Letter Agreement and Amended Facility Payoff Agreement filed as Exhibits 4.1, 4.2, 10.1, 10.2, 10.3, 10.4, 10.5, and 10.6, respectively, to this Current Report on Form 8-K and incorporated herein by reference.

**Item 2.03. Creation of a Direct Financial Obligation or an Obligation under an Off-Balance Sheet Arrangement of a Registrant.**

The information under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

**Item 3.02. Unregistered Sales of Equity Securities.**

The information under Item 1.01 of this Current Report on Form 8-K is incorporated herein by reference.

**Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.** 

*Resignation of Directors* 

On April 30, 2026, in connection with and pursuant to the terms of the Purchase Agreement, Karen Macleod and Peter Poli submitted their resignations as members of the Board of Directors of the Company (the "*Board*"). The resignations of Ms. Macleod and Mr. Poli were not due to any disagreements with respect to the Company's operations, policies or practices.

*Increase to Number of Member of the Board Seats*

On April 30, 2026, in connection with and pursuant to the terms of the Purchase Agreement, the Board increased the number of designated seats on the Board to six (6).

*Appointment of Denver Smith*

On April 30, 2026, the Board of the Company appointed Denver Smith as a member of the Board, effective immediately. Mr. Smith will serve as a director until the Company's next annual meeting of stockholders, and until such time as his successor is duly elected and qualified, or until his earlier death, resignation, or removal.

Denver Smith, age 38, is the Co-Founder and managing member of Carlson Ridge Capital ("*Carlson Ridge*"), a hedge fund manager, which was founded in 2015. He is also the CIO of Carlson Ridge and acts as the lead manager for the CRC Founders Fund, LP. Additionally, Mr. Smith advises the Aspen Family Trust on its asset allocation and strategic level decisions for various entities it owns. He was previously a portfolio manager and the Chief Investment Officer for 73114 Investments, LLC, for a period of 9 years. In 2015, he prompted and helped negotiate the sale of 73114 Investments' parent company, Avalon Correctional Services, Inc., to CoreCivic, Inc. (NYSE: CXW) for over $150 million. Mr. Smith serves on the board of trustees of Lifestyle Management Inc, a non-profit organization. He has served on the board of directors of Innovative Food Holdings, Inc. (OTC: IVFH) since March of 2023. He graduated from the University of Oklahoma with a BBA in Finance and Economics. He also earned an MBA from the University of Oklahoma. Mr. Smith is a CFA Charterholder. Pursuant to the Purchase Agreement, Mr. Smith is a nominee of Carlson Ridge Capital, LLC, a Delaware limited liability company ("*CRC*").

*Appointment of Jacob Saour*

On April 30, 2026, the Board of the Company appointed Jacob Saour as a member of the Board, effective immediately. Mr. Saour will serve as a director until the Company's next annual meeting of stockholders, and until such time as his successor is duly elected and qualified, or until his earlier death, resignation, or removal.

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Jacob Saour, age 45, seeks out and analyzes potential investments for JCP Investments there since September 2024. Mr. Saour served on the Board of Morgans Foods (ticker: MRFD) from 2013 - 2014. Mr. Saour served as Director of Investments from 2016 to 2023 at Cortland, a multifamily real estate management company. Mr. Saour served as a Director from 2010 to 2016 at Cushman & Wakefield, a global commercial real estate services company. Mr. Saour received a BA from The University of Texas and a Masters from Texas A&M University. Pursuant to the Purchase Agreement, Mr. Saour is a nominee of JCP Investment Partnership, LP.

*Appointment of Kyle Kidd*

On April 30, 2026, the Board of the Company appointed Kyle Kidd as a member of the Board, effective immediately. Mr. Kidd will serve as a director until the Company's next annual meeting of stockholders, and until such time as his successor is duly elected and qualified, or until his earlier death, resignation, or removal.

Kyle Kidd, age 38, is a partner in Leo Berwick's mergers and acquisitions tax practice. In his role, which began in 2022, he advises his private equity and public company clients on various tax and financial accounting matters relating to acquisitions, dispositions, restructurings, capital raises, and debt workouts. Prior to his role at Leo Berwick, Kyle served as a managing director in KPMG's mergers and acquisitions tax practice. Kyle has a BBA in accounting and a masters in accountancy from the University of Oklahoma. He is a Texas certified public accountant. Pursuant to the Purchase Agreement, Mr. Saour is a nominee of CRC.

*Appointment of Matthew Powalski*

On April 30, 2026, the Board of the Company appointed Matthew Powalski as a member of the Board, effective immediately. Mr. Powalski will serve as a director until the Company's next annual meeting of stockholders, and until such time as his successor is duly elected and qualified, or until his earlier death, resignation, or removal.

Matt Powalski, age 36, currently serves as Chief Financial Officer of JCP Investment Management, LLC, a boutique investment adviser to hedge funds and special purpose vehicles based in Houston, Texas. In this role, he oversees financial reporting, audit and tax functions, and directs financial modeling and underwriting activities. He brings deep expertise in accounting, asset and cash management, and provides risk-based analysis to support strategic decision-making by senior stakeholders. Prior to joining JCP Investment Management, LLC, Mr. Powalski led the investment accounting function at McNair Interests, a Houston-based family office. He also served as an advisor to the principals of Capital Technologies (Bosarge Family Office), where he managed the financial reporting and accounting of complex, multi-tiered investment structures. Mr. Powalski began his career at PKF Texas, where he provided tax compliance and consulting services to corporate, partnership, and high-net-worth clients. He graduated magna cum laude from Texas A&M University with a Master of Taxation, a Bachelor's degree in Accounting, and is professionally licensed in the State of Texas as a Certified Public Accountant. Pursuant to the Purchase Agreement, Mr. Powalski is a nominee of JCP Investment Partnership, LP.

*Appointment of John Sullivan*

On April 30, 2026, the Board of the Company appointed John Sullivan as a member of the Board, effective immediately. Mr. Sullivan will serve as a director until the Company's next annual meeting of stockholders, and until such time as his successor is duly elected and qualified, or until his earlier death, resignation, or removal.

John "Rocky" Sullivan, age 40, has been an Investment Advisor Representative and Investment Analyst with JCP Investment Management, LP since 2022. JCP Investment Management, LP is an SEC Registered Investment Advisor where Mr. Sullivan's core focus is on investment due diligence and public equity analysis. He is also the president of Sullivan Companies which is a family office engaged in investment management, real estate development and production agriculture. He has been an owner and employee of the Sullivan Companies entities since 2009 and specifically employed by Navillus Management, LLC and most recently changed to Sullivan Land and Cattle Co. LLC. Mr. Sullivan has served as an outside director and chairman of the compensation committee of Tandy Leather Factory, Inc. (Nasdaq: TLF) since 2025. Mr. Sullivan has a BBA in marketing from Texas A&M University and is a graduate of the Texas Christian University Ranch Management Program. Pursuant to the Purchase Agreement, Mr. Saour is a nominee of JCP Investment Partnership, LP.

*Appointment of Derek Cassell*

On April 30, 2026, the Board of the Company appointed Derek Cassell as a member of the Board, effective immediately. Mr. Cassell will serve as a director until the Company's next annual meeting of stockholders, and until such time as his successor is duly elected and qualified, or until his earlier death, resignation, or removal.

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Each of Mr. Smith, Mr. Powalski, Mr. Saour, Mr. Sullivan and Mr. Thomas will receive compensation for their service as a non-employee director pursuant to the Company's director compensation program, consisting of a quarterly cash retainer of $25,000. Mr. Smith, Mr. Powalski, Mr. Saour, Mr. Sullivan, Mr. Thomas and Mr. Cassell will also enter into the Company's standard indemnification agreement.

There are no arrangements or understandings between the Company and Mr. Smith, Mr. Powalski, Mr. Saour, Mr. Sullivan, Mr. Thomas or Mr. Cassell, respectively, and any other person pursuant to which he or she was elected as a director. Neither Mr. Smith, Mr. Powalski, Mr. Saour, Mr. Sullivan, Mr. Thomas or Mr. Cassell is a party to any transaction with the Company that would require disclosure under Item 404(a) of Regulation S-K other than as described Item 1.01 of this Current Report on Form 8-K.

**Item 5.03. Amendments to Articles of Incorporation or Bylaws; Change in Fiscal Year.**

On April 29, 2026, following the approval of the Board of Directors of the Company and the written consent of a majority of the outstanding voting securities of the Company, the Company adopted and filed with the Secretary of State of the State of Delaware a certificate of amendment (the "*Certificate of Amendment*") to the Company's Certificate of Incorporation. The Certificate of Amendment increased the total number of shares of Common Stock authorized for issuance thereunder from 30,000,000 shares to 60,000,000 shares, effective April 30, 2026.

The foregoing description of the Certificate of Amendment does not purport to be complete and is qualified in its entirety by reference to the Certificate of Amendment filed as Exhibit 3.1 to this Current Report on Form 8-K and incorporated herein by reference.

**Item 7.01. Regulation FD Disclosure**

On May 1, 2026, the Company issued a press release announcing the Private Placement, the Credit Agreement, and the transactions set forth in this Current Report on Form 8-K, a copy of which is furnished herewith as Exhibit 99.1.

The information provided under this Item 7.01 of this Current Report on Form 8-K, including Exhibit 99.1, is "furnished" and shall not be deemed "filed" with the SEC or incorporated by reference in any filing under the Securities Exchange Act of 1934, as amended, or the Securities Act.

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**Item 9.01. Financial Statements and Exhibits.**

(d) Exhibits.

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| | |
|:---|:---|
| **<u>Exhibit No.</u>** | **<u>Description</u>** |
| 3.1 | [Certificate of Amendment to Certificate of Incorporation, dated as of April 30, 2026](ex_955053.htm) |
| 4.1 | [Form of PIPE Warrant](ex_954293.htm) |
| 4.2 | [Form of Lender Warrant](ex_954294.htm) |
| 10.1†  | [Credit Agreement by and between the Company and each of its affiliates party thereto, as borrowers, the financial institutions party thereto, as lenders, and Chatham Capital Management, LLC, as administrative agent and lead arranger, dated April 30, 2026.](ex_953846.htm) |
| 10.2† | [Guaranty and Collateral Agreement by and between the Company and Chatham Capital Management, LLC, as administrative agent, dated April 30, 2026.](ex_953847.htm) |
| 10.3† | [Form of Securities Purchase Agreement, dated April 30, 2026.](ex_953848.htm) |
| 10.4† | [Form of Registration Rights Agreement, dated April 30, 2026](ex_953849.htm) |
| 10.5 | [Letter Agreement between the Company and ADS Securities, LLC](ex_954970.htm) |
| 10.6 | [Amended Facility Payoff Agreement by and between the Company and Conrent Invest S.A.,<u>acting on behalf of its compartment</u> <u>"</u><u>Safety 2</u><u>"</u><u>, dated April 30, 2026.</u>](ex_954971.htm) |
| 99.1 | [Press Release, dated May 1, 2026.](ex_954939.htm) |
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) |

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The annexes schedules, and certain exhibits to this Exhibit have been omitted pursuant to Item 601(b)(2) of Regulation S-K. The Registrant hereby agrees to furnish supplementally a copy of any omitted annex, schedule or exhibit to the SEC upon request.

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**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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| | | |
|:---|:---|:---|
|  | **TRACK GROUP, INC.** | **TRACK GROUP, INC.** |
| Date: May 4, 2026 | By: | */s/ James A. Berg* |
|  |  | James A. Berg |
|  |  | Chief Financial Officer |

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## Exhibit 3.1

**Exhibit 3.1**

**CERTIFICATE OF AMENDMENT**

**OF**

**CERTIFICATE OF INCORPORATION**

**OF**

**TRACK GROUP, INC.**

Track Group, Inc., (the "***Corporation***") a corporation organized under and by virtue of the General Corporation Law of the State of Delaware, DOES HEREBY CERTIFY:

**FIRST**: This Certificate of Amendment amends the provisions of the Corporations Certificate of Incorporation (the "***Certificate of Incorporation***").

**SECOND**: The terms and provisions of this Certificate of Amendment have been duly adopted in accordance with Sections 228 and 242 of the General Corporation Law of the State of Delaware, and shall be effective immediately upon filing with the Secretary of State for the State of Delaware.

**THIRD**: The Corporation hereby amends the following provision of Certificate of Incorporation by deleting Section 4A in its entirety and replacing it with the following new paragraph:

"A. *Authorized Stock*. The aggregate number of shares which the Corporation shall have authority to issue is Eighty Million (80,000,000), of which Sixty Million (60,000,000) shall be designated as Common Stock, par value $0.0001 per share ("*Common Stock*"), and Twenty Million (20,000,000) shall be designated as Preferred Stock, par value $0.0001 per share ("*Preferred Stock*").."

**FOURTH**: This Certificate of Amendment to the Certificate of Incorporation, shall be effective at 12:01 a.m., Eastern Time on April 30, 2026.

**IN WITNESS WHEREOF**, the Corporation has caused this Certificate of Amendment to be signed by its officers thereunto duly authorized this 29th day of April, 2026.

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| |
|:---|
| <u>/s/ Derek Cassell</u> <u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u><u> </u> |
| Derek Cassell |
| Chief Executive Officer |

---

## Exhibit 4.1

**Exhibit 4.1**

**[FORM OF WARRANT]**

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

TRACK GROUP, INC.<br>WARRANT TO PURCHASE COMMON STOCK

Warrant No.: [___________]<br> Number of Shares of Common Stock: [_____________]<br> Date of Issuance: [___________ ___], 2026 ("**Issuance Date**")

Track Group, Inc., a Delaware corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [HOLDER], the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant (including any Warrants issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof (the "**Exercise Date**") but not after 11:59 p.m., New York Time, on the Expiration Date (as defined below), [______________ (_____________)] fully paid and nonassessable shares of Common Stock (as defined below) (subject to adjustment as provided herein, the "**Warrant Shares**"). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 15. This Warrant is one of the Warrants (collectively, the "**SPA Warrants**") issued pursuant to that certain Securities Purchase Agreement, dated as of March [___], 2026 (the "**Subscription Date**"), by and among the Company and the investors (the "**Buyers**") referred to therein (the "**Securities Purchase Agreement**") and is subject to the terms and conditions thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Exercise Of Warrant**.

(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the Exercise Date in whole or in part, by (i) delivery of a written notice, in the form attached hereto as <u>Exhibit A</u> (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, (ii) (A) payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "**Aggregate Exercise Price**") in cash or wire transfer of immediately available funds or (B) by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 1(c)). The Holder shall not be required to deliver the original Warrant in order to effect the exercise hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. On or before the first Business Day following the date on which the Company has received each of the Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless Exercise) (the "**Exercise Delivery Documents**"), the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of the Exercise Delivery Documents to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the second Business Day following the date on which the Company has received all of the Exercise Delivery Documents (the "**Share Delivery Date**"), the Company shall issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise or shall cause such shares to be registered with its transfer agent in book-entry form in the name of such Holder or its designee. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates or book entry evidencing such Warrant Shares. If this Warrant is delivered to the Company in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than five Business Days after the Share Delivery Date and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant; provided that the Company shall not be required to pay any tax that may be payable in respect of any issuance and delivery of Warrant Shares to any Person other than the Holder or with respect to any income tax due by the Holder with respect to such Warrant Shares.

(b) <u>Exercise Price</u>. For purposes of this Warrant "**Exercise Price**" means $0.35 per share, subject to adjustment as provided herein.

(c) <u>Cashless Exercise</u>. If, at any time following the Effectiveness Deadline (as defined in the Registration Rights Agreement), there is no effective registration on file with the Securities and Exchange Commission registering for resale the Warrant Shares, then this Warrant may also be exercised, in whole or in part, by means of a "cashless exercise" in which the Holder, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elects instead to receive upon such exercise the "**Net Number**" of shares of Common Stock determined according to the following formula (a "**Cashless Exercise**"):

Net Number = (A x B) - (A x C) <br> B

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For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the closing price of the Common Stock (as reported by Bloomberg) on the date immediately preceding the date of the Exercise Notice.

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

(d) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 12.

2. **Adjustment of Exercise Price and Number of Warrant Shares**. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

(a) <u>Adjustment upon Issuance of Common Stock</u>. If and whenever on or after the Issuance Date the Company issues or sells, or in accordance with this Section 2 is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company) for a consideration per share less than a price (the "**Applicable Price**") equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (the foregoing a "**Dilutive Issuance**"), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an amount equal to the product of (A) the Exercise Price in effect immediately prior to such Dilutive Issuance and (B) the quotient determined by dividing (1) the sum of (I) the product derived by multiplying the Exercise Price in effect immediately prior to such Dilutive Issuance and the number of Common Shares Deemed Outstanding immediately prior to such Dilutive Issuance plus (II) the consideration, if any, received by the Company upon such Dilutive Issuance, by (2) the product derived by multiplying (I) the Exercise Price in effect immediately prior to such Dilutive Issuance by (II) the number of Common Shares Deemed Outstanding immediately after such Dilutive Issuance; *provided*, *however*, that no Exempt Issuance shall be a Dilutive Issuance. Upon each such adjustment of the Exercise Price hereunder, the number of Warrant Shares shall be adjusted to the number of shares of Common Stock determined by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares acquirable upon exercise of this Warrant immediately prior to such adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment. For purposes of determining the adjusted Exercise Price under this Section 2(a), the following shall be applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Issuance of Options</u>. If the Company in any manner grants any Options that are not Exempt Issuances, and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 2(a)(i), the "lowest price per share for which one share of Common Stock is issuable upon exercise of such Options or upon conversion, exercise or exchange of such Convertible Securities" shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Exercise Price or number of Warrant Shares shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Issuance of Convertible Securities</u>. If the Company in any manner issues or sells any Convertible Securities in a transaction that is not an Exempt Issuance, and the lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this Section 2(a)(ii), the "lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange" shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security. No further adjustment of the Exercise Price or number of Warrant Shares shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of this Section 2(a), no further adjustment of the Exercise Price or number of Warrant Shares shall be made by reason of such issue or sale.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Change in Option Price or Rate of Conversion</u>. If the purchase price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time, the Exercise Price and the number of Warrant Shares in effect at the time of such increase or decrease shall be adjusted to the Exercise Price and the number of Warrant Shares which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 2(a)(iii), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance of this Warrant are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 2(a) shall be made in the event of any Exempt Issuance, if such adjustment would result in an increase of the Exercise Price then in effect or a decrease in the number of Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Calculation of Consideration Received</u>. In case any Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, the Options will be deemed to have been issued for a consideration of U.S. $0.0001. If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration other than cash received by the Company will be the fair value of such consideration, except where such consideration consists of marketable securities, in which case the amount of consideration received by the Company will be the closing price of such security on the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the stockholders of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of such consideration will be deemed to be the fair value of the net assets and business of the non-surviving entity, calculated on a going-concern basis, as is attributable to such shares of Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or marketable securities will be determined jointly by the Company and the Required Holders. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the "**Valuation Event** "), the fair value of such consideration will be determined within five (5) Business Days after the tenth day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Required Holders. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne one-half by the Company and one-half by the Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Record Date</u>. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

(b) <u>Adjustment upon Subdivision or Combination of Common Stock</u>. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective at the close of business on the date the subdivision or combination becomes effective.

(c) <u>Other Events</u>. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features, but specifically excluding Exempt Issuances), then the Company's Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 2(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2.

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3. **Rights Upon Distribution Of Assets**. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) for which adjustment in the Exercise Price of the Warrant is not otherwise provided hereunder (a "**Distribution**"), at any time after the Issuance Date, then, in each such case:

(a) the Exercise Price in effect immediately prior to the close of business on the record date fixed for the determination of holders of shares of Common Stock entitled to receive the Distribution shall be reduced, effective as of the close of business on such record date, to a price determined by subtracting from such Exercise Price the value of the Distribution (as determined in good faith by the Company's Board of Directors) applicable to one share of Common Stock; <u>provided</u>, <u>however</u>, that in no event shall the Exercise Price be reduced below the par value of the Common Stock; and

(b) upon each such adjustment of the Exercise Price hereunder, the number of Warrant Shares shall be adjusted to the number of shares of Common Stock determined by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares acquirable upon exercise of this Warrant immediately prior to such adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment.

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4. **Fundamental Transactions**. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4 pursuant to written agreements in form and substance satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver to each holder of Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant immediately prior to such Fundamental Transaction, and satisfactory to the Required Holders, and (ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose common stock or equivalent equity security is listed for trading on a securities exchange or market or quoted on an over-the-counter bulletin board. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the "**Company**" shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of the Warrant immediately prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had this Warrant been exercised immediately prior to such Fundamental Transaction, as adjusted in accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive cash, securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to insure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately prior to such Fundamental Transaction. Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Required Holders. The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and Corporate Events.

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5. **Noncircumvention**. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws, other organizational or governing documents or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the SPA Warrants, 120% of the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the SPA Warrants then outstanding.

6. **Warrant Holder Not Deemed A Stockholder**. Except as otherwise specifically provided herein, the Holder, solely in such Person's capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person's capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Reissuance Of Warrants.** 

(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less then the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

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(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional shares of Common Stock shall be given.

(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. **Notices**. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the Exercise Price, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen days (or such lesser period agreed to in writing by the Required Holders) prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grant, issuance or sale of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to all holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

9. **Amendment and Waiver**. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Required Holders; provided that no such action may increase the exercise price of any SPA Warrant or decrease the number of shares or class of stock obtainable upon exercise of any SPA Warrant, or disproportionately and adversely affect any of the rights or obligations of the Holder relative to the comparable rights or obligations of the other Holders, without the written consent of the Holder. No such amendment shall be effective to the extent that it applies to less than all of the holders of the SPA Warrants then outstanding.

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10. **Governing Law**. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the laws of the state of New York, without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

11. **Construction; Headings**. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and shall not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

12. **Dispute Resolution**. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations within two Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two Business Days thereafter submit the disputed determination of the Exercise Price and/or the disputed arithmetic calculation of the Warrant Shares to the Company's independent public accounting firm. The Company shall cause at its expense its independent public accounting firm to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations or calculations. Such accounting firm's determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

13. **Remedies, Other Obligations, Breaches and Injunctive Relief**. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder right to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any breach or threatened breach, without the necessity of showing economic loss and without any bond or other security being required.

14. **Transfer**. (a) This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company, in compliance with applicable securities laws.

(b) The Company shall be entitled to treat the registered Holder of this Warrant as the absolute owner hereof and shall incur no liability for the issuance of shares of Common Stock or for other action taken hereunder in good faith based upon such ownership until such time as a written assignment of this Warrant is effected by such registered owner, which assignment has been delivered to the Company and satisfies the requirements of Sections 7(a) and 14(a) hereof.

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15. **Certain Definitions**. For purposes of this Warrant, the following terms shall have the following meanings:

(a) "**Bloomberg**" means Bloomberg Financial Markets.

(b) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

(c) "**Common Stock**" means (i) the Company's Common Stock, par value $0.0001 per share, and (ii) any share capital into which such shares of Common Stock shall have been changed or any share capital resulting from a reclassification of such shares of Common Stock.

(d) "**Common Stock Equivalents**" means any securities or rights of the Company that are convertible into, exchangeable for, or exercisable to acquire shares of Common Stock, or that otherwise entitle the holder thereof to receive, directly or indirectly, shares of Common Stock or the economic equivalent thereof, including, without limitation, options, warrants, convertible notes or other debt securities, convertible or exchangeable preferred stock, rights, subscription rights or warrants, restricted stock units, stock appreciation rights and any other rights or arrangements that provide for, or are intended to provide for, settlement in shares of Common Stock (or in cash based on the value of Common Stock), in each case whether outstanding on the date hereof or hereafter issued and whether or not then presently convertible, exchangeable or exercisable.

(e) "**Common Shares Deemed Outstanding**" means, at any given time, the number of shares of Common Stock actually outstanding at such time, plus the number of shares of Common Stock deemed to be outstanding pursuant to Sections 2(a)(i) and 2(a)(ii) hereof regardless of whether the Options or Convertible Securities are actually exercisable at such time, but excluding any shares of Common Stock owned or held by or for the account of the Company or issuable upon exercise of the SPA Warrants.

(f) "**Convertible Securities**" means any stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

(g) "**Exempt Issuance**" means the following issuances of shares of Common Stock or Common Stock Equivalents by the Company that shall not give rise to any adjustment of the Exercise Price or number of Warrant Shares pursuant to the anti-dilution provisions of this Warrant: (a) securities issued upon the exercise, conversion or exchange of options, warrants or other convertible or exchangeable securities outstanding as of the date of this Warrant, provided that the terms of such securities are not amended to lower the exercise, conversion or exchange price thereof, extend the term thereof or otherwise increase the number of shares issuable thereunder; (b) securities issued pursuant to stock option plans, restricted stock plans, stock purchase plans or other equity incentive plans or arrangements approved by the Board of Directors, in each case for compensatory purposes to employees, officers, directors or consultants; (c) securities issued as full or partial consideration in connection with mergers, acquisitions, joint ventures, strategic alliances, licensing arrangements, technology or asset acquisitions, or similar bona fide strategic transactions (but not for the purpose of raising capital), as approved by the Board of Directors; (d) securities issued in connection with bona fide commercial credit arrangements, equipment financings, real property or equipment leases, or similar transactions with lenders, lessors or other financial institutions (but not for the purpose of raising capital); (e) shares of Common Stock issued in connection with stock splits, stock dividends or other distributions on shares of Common Stock, or recapitalizations; and (f) securities issued to underwriters as underwriting discounts or commissions in connection with a bona fide public offering.

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(h) "**Expiration Date**" means the date that is ten (10) years after the Issuance Date or, if such date falls on a day other than a Business Day or on which trading does not take place on the exchange or market on which the Common Stock is then listed (a "**Holiday**"), the next date that is not a Holiday.

(i) "**Fundamental Transaction**" means a transaction or series of transactions in which the Company shall, directly or indirectly, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer) or (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization or spin-off) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of Common Stock (including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), or (iv) reorganize, recapitalize or reclassify its Common Stock.

(j) "**Options**" means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is listed for trading on a securities exchange or market or quoted on an over-the-counter bulletin board, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

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(m) "**Registration Rights Agreement**" means that certain Registration Rights Agreement, entered into on March [ ], 2026, by and between the Company and those certain investor signatories thereto.

(n) "**Required Holders**" means the holders of the SPA Warrants representing at least a majority of the shares of Common Stock underlying the SPA Warrants then outstanding.

(o) "**Successor Entity**" means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

**[Signature Page Follows]**

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**IN WITNESS WHEREOF**, the Company has caused this Warrant to be duly executed as of the Issuance Date set out above.

TRACK GROUP, INC. <br> <br> By:

Name: <br> Title:

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EXHIBIT A

EXERCISE NOTICE<br> TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

FIRSTIME DESIGN LTD.

The undersigned holder hereby exercises the right to purchase _________________ shares of Common Stock ("**Warrant Shares**") of Track Group, Inc., a Delaware corporation (the "**Company**"), evidenced by the attached Warrant (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

____________ a "Cash Exercise" with respect to _________________ Warrant Shares; and/or

____________ a "Cashless Exercise" with respect to _______________ Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant.

Date: ____________ __, ______<br>

Name of Registered Holder

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| | |
|:---|:---|
| By: |  |
|  | Name: |
|  | Title: |

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ACKNOWLEDGMENT

The Company hereby acknowledges this Exercise Notice and hereby directs its transfer agent to issue the above indicated number of shares of Common Stock.

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| | |
|:---|:---|
| TRACK GROUP, INC. | TRACK GROUP, INC. |
| By:  |  |
|  | Name: |
|  | Title: |

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## Exhibit 4.2

**Exhibit 4.2**

**[FORM OF WARRANT]**

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

TRACK GROUP, INC.<br>WARRANT TO PURCHASE COMMON STOCK

Warrant No.: [___________]<br> Number of Shares of Common Stock: [_____________]<br> Date of Issuance: [___________ ___], 2026 ("**Issuance Date**")

Track Group, Inc., a Delaware corporation (the "**Company**"), hereby certifies that, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, [HOLDER], the registered holder hereof or its permitted assigns (the "**Holder**"), is entitled, subject to the terms set forth below, to purchase from the Company, at the Exercise Price (as defined below) then in effect, upon surrender of this Warrant (including any Warrants issued in exchange, transfer or replacement hereof, the "**Warrant**"), at any time or times on or after the date hereof (the "**Exercise Date**") but not after 11:59 p.m., New York Time, on the Expiration Date (as defined below), [______________ (_____________)] fully paid and nonassessable shares of Common Stock (as defined below) (subject to adjustment as provided herein, the "**Warrant Shares**"). Except as otherwise defined herein, capitalized terms in this Warrant shall have the meanings set forth in Section 15. This Warrant is one of the Warrants (collectively, the "**SPA Warrants**") issued pursuant to that certain Securities Purchase Agreement, dated as of March [___], 2026 (the "**Subscription Date**"), by and among the Company and the investors (the "**Buyers**") referred to therein (the "**Securities Purchase Agreement**") and is subject to the terms and conditions thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Exercise Of Warrant**.

(a) <u>Mechanics of Exercise</u>. Subject to the terms and conditions hereof, this Warrant may be exercised by the Holder on any day on or after the Exercise Date in whole or in part, by (i) delivery of a written notice, in the form attached hereto as <u>Exhibit A</u> (the "**Exercise Notice**"), of the Holder's election to exercise this Warrant, (ii) (A) payment to the Company of an amount equal to the applicable Exercise Price multiplied by the number of Warrant Shares as to which this Warrant is being exercised (the "**Aggregate Exercise Price**") in cash or wire transfer of immediately available funds or (B) by notifying the Company that this Warrant is being exercised pursuant to a Cashless Exercise (as defined in Section 1(c)). The Holder shall not be required to deliver the original Warrant in order to effect the exercise hereunder. Execution and delivery of the Exercise Notice with respect to less than all of the Warrant Shares shall have the same effect as cancellation of the original Warrant and issuance of a new Warrant evidencing the right to purchase the remaining number of Warrant Shares. On or before the first Business Day following the date on which the Company has received each of the Exercise Notice and the Aggregate Exercise Price (or notice of a Cashless Exercise) (the "**Exercise Delivery Documents**"), the Company shall transmit by facsimile or electronic mail an acknowledgment of confirmation of receipt of the Exercise Delivery Documents to the Holder and the Company's transfer agent (the "**Transfer Agent**"). On or before the second Business Day following the date on which the Company has received all of the Exercise Delivery Documents (the "**Share Delivery Date**"), the Company shall issue and dispatch by overnight courier to the address as specified in the Exercise Notice, a certificate, registered in the Company's share register in the name of the Holder or its designee, for the number of shares of Common Stock to which the Holder is entitled pursuant to such exercise or shall cause such shares to be registered with its transfer agent in book-entry form in the name of such Holder or its designee. Upon delivery of the Exercise Delivery Documents, the Holder shall be deemed for all corporate purposes to have become the holder of record of the Warrant Shares with respect to which this Warrant has been exercised, irrespective of the date of delivery of the certificates or book entry evidencing such Warrant Shares. If this Warrant is delivered to the Company in connection with any exercise pursuant to this Section 1(a) and the number of Warrant Shares represented by this Warrant submitted for exercise is greater than the number of Warrant Shares being acquired upon an exercise, then the Company shall as soon as practicable and in no event later than five Business Days after the Share Delivery Date and at its own expense, issue a new Warrant (in accordance with Section 7(d)) representing the right to purchase the number of Warrant Shares purchasable immediately prior to such exercise under this Warrant, less the number of Warrant Shares with respect to which this Warrant is exercised. No fractional shares of Common Stock are to be issued upon the exercise of this Warrant, but rather the number of shares of Common Stock to be issued shall be rounded up to the nearest whole number. The Company shall pay any and all taxes which may be payable with respect to the issuance and delivery of Warrant Shares upon exercise of this Warrant; provided that the Company shall not be required to pay any tax that may be payable in respect of any issuance and delivery of Warrant Shares to any Person other than the Holder or with respect to any income tax due by the Holder with respect to such Warrant Shares.

(b) <u>Exercise Price</u>. For purposes of this Warrant "**Exercise Price**" means $0.35 per share, subject to adjustment as provided herein.

(c) <u>Cashless Exercise</u>. If, at any time following the Effectiveness Deadline (as defined in the Registration Rights Agreement), there is no effective registration on file with the Securities and Exchange Commission registering for resale the Warrant Shares, then this Warrant may also be exercised, in whole or in part, by means of a "cashless exercise" in which the Holder, in lieu of making the cash payment otherwise contemplated to be made to the Company upon such exercise in payment of the Aggregate Exercise Price, elects instead to receive upon such exercise the "**Net Number**" of shares of Common Stock determined according to the following formula (a "**Cashless Exercise**"):

Net Number = <u>(A x B)</u> <u>-</u> <u>(A x C)</u> <br> B

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For purposes of the foregoing formula:

A= the total number of shares with respect to which this Warrant is then being exercised.

B= the closing price of the Common Stock (as reported by Bloomberg) on the date immediately preceding the date of the Exercise Notice.

C= the Exercise Price then in effect for the applicable Warrant Shares at the time of such exercise.

(d) <u>Disputes</u>. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall promptly issue to the Holder the number of Warrant Shares that are not disputed and resolve such dispute in accordance with Section 12.

2. **Adjustment of Exercise Price and Number of Warrant Shares**. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows:

(a) <u>Adjustment upon Issuance of Common Stock</u>. If and whenever on or after the Issuance Date the Company issues or sells, or in accordance with this Section 2 is deemed to have issued or sold, any shares of Common Stock (including the issuance or sale of shares of Common Stock owned or held by or for the account of the Company) for a consideration per share less than a price (the "**Applicable Price**") equal to the Exercise Price in effect immediately prior to such issue or sale or deemed issuance or sale (the foregoing a "**Dilutive Issuance**"), then immediately after such Dilutive Issuance, the Exercise Price then in effect shall be reduced to an amount equal to the product of (A) the Exercise Price in effect immediately prior to such Dilutive Issuance and (B) the quotient determined by dividing (1) the sum of (I) the product derived by multiplying the Exercise Price in effect immediately prior to such Dilutive Issuance and the number of Common Shares Deemed Outstanding immediately prior to such Dilutive Issuance plus (II) the consideration, if any, received by the Company upon such Dilutive Issuance, by (2) the product derived by multiplying (I) the Exercise Price in effect immediately prior to such Dilutive Issuance by (II) the number of Common Shares Deemed Outstanding immediately after such Dilutive Issuance; *provided*, *however*, that no Exempt Issuance shall be a Dilutive Issuance. Upon each such adjustment of the Exercise Price hereunder, the number of Warrant Shares shall be adjusted to the number of shares of Common Stock determined by multiplying the Exercise Price in effect immediately prior to such adjustment by the number of Warrant Shares acquirable upon exercise of this Warrant immediately prior to such adjustment and dividing the product thereof by the Exercise Price resulting from such adjustment. For purposes of determining the adjusted Exercise Price under this Section 2(a), the following shall be applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Issuance of Options</u>. If the Company in any manner grants any Options that are not Exempt Issuances, and the lowest price per share for which one share of Common Stock is issuable upon the exercise of any such Option or upon conversion, exercise or exchange of any Convertible Securities issuable upon exercise of any such Option is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the granting or sale of such Option for such price per share. For purposes of this Section 2(a)(i), the "lowest price per share for which one share of Common Stock is issuable upon exercise of such Options or upon conversion, exercise or exchange of such Convertible Securities" shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to any one share of Common Stock upon the granting or sale of the Option, upon exercise of the Option and upon conversion, exercise or exchange of any Convertible Security issuable upon exercise of such Option. No further adjustment of the Exercise Price or number of Warrant Shares shall be made upon the actual issuance of such shares of Common Stock or of such Convertible Securities upon the exercise of such Options or upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <u>Issuance of Convertible Securities</u>. If the Company in any manner issues or sells any Convertible Securities in a transaction that is not an Exempt Issuance, and the lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange thereof is less than the Applicable Price, then such share of Common Stock shall be deemed to be outstanding and to have been issued and sold by the Company at the time of the issuance or sale of such Convertible Securities for such price per share. For the purposes of this Section 2(a)(ii), the "lowest price per share for which one share of Common Stock is issuable upon the conversion, exercise or exchange" shall be equal to the sum of the lowest amounts of consideration (if any) received or receivable by the Company with respect to one share of Common Stock upon the issuance or sale of the Convertible Security and upon conversion, exercise or exchange of such Convertible Security. No further adjustment of the Exercise Price or number of Warrant Shares shall be made upon the actual issuance of such shares of Common Stock upon conversion, exercise or exchange of such Convertible Securities, and if any such issue or sale of such Convertible Securities is made upon exercise of any Options for which adjustment of this Warrant has been or is to be made pursuant to other provisions of this Section 2(a), no further adjustment of the Exercise Price or number of Warrant Shares shall be made by reason of such issue or sale.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) <u>Change in Option Price or Rate of Conversion</u>. If the purchase price provided for in any Options, the additional consideration, if any, payable upon the issue, conversion, exercise or exchange of any Convertible Securities, or the rate at which any Convertible Securities are convertible into or exercisable or exchangeable for shares of Common Stock increases or decreases at any time, the Exercise Price and the number of Warrant Shares in effect at the time of such increase or decrease shall be adjusted to the Exercise Price and the number of Warrant Shares which would have been in effect at such time had such Options or Convertible Securities provided for such increased or decreased purchase price, additional consideration or increased or decreased conversion rate, as the case may be, at the time initially granted, issued or sold. For purposes of this Section 2(a)(iii), if the terms of any Option or Convertible Security that was outstanding as of the date of issuance of this Warrant are increased or decreased in the manner described in the immediately preceding sentence, then such Option or Convertible Security and the shares of Common Stock deemed issuable upon exercise, conversion or exchange thereof shall be deemed to have been issued as of the date of such increase or decrease. No adjustment pursuant to this Section 2(a) shall be made in the event of any Exempt Issuance, if such adjustment would result in an increase of the Exercise Price then in effect or a decrease in the number of Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <u>Calculation of Consideration Received</u>. In case any Option is issued in connection with the issue or sale of other securities of the Company, together comprising one integrated transaction in which no specific consideration is allocated to such Options by the parties thereto, the Options will be deemed to have been issued for a consideration of U.S. $0.0001. If any shares of Common Stock, Options or Convertible Securities are issued or sold or deemed to have been issued or sold for cash, the consideration received therefor will be deemed to be the net amount received by the Company therefor. If any shares of Common Stock, Options or Convertible Securities are issued or sold for a consideration other than cash, the amount of such consideration other than cash received by the Company will be the fair value of such consideration, except where such consideration consists of marketable securities, in which case the amount of consideration received by the Company will be the closing price of such security on the date of receipt. If any shares of Common Stock, Options or Convertible Securities are issued to the stockholders of the non-surviving entity in connection with any merger in which the Company is the surviving entity, the amount of such consideration will be deemed to be the fair value of the net assets and business of the non-surviving entity, calculated on a going-concern basis, as is attributable to such shares of Common Stock, Options or Convertible Securities, as the case may be. The fair value of any consideration other than cash or marketable securities will be determined jointly by the Company and the Required Holders. If such parties are unable to reach agreement within ten (10) days after the occurrence of an event requiring valuation (the "**Valuation Event** "), the fair value of such consideration will be determined within five (5) Business Days after the tenth day following the Valuation Event by an independent, reputable appraiser jointly selected by the Company and the Required Holders. The determination of such appraiser shall be final and binding upon all parties absent manifest error and the fees and expenses of such appraiser shall be borne one-half by the Company and one-half by the Holders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <u>Record Date</u>. If the Company takes a record of the holders of shares of Common Stock for the purpose of entitling them (A) to receive a dividend or other distribution payable in shares of Common Stock, Options or Convertible Securities or (B) to subscribe for or purchase shares of Common Stock, Options or Convertible Securities, then such record date will be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

(b) <u>Adjustment upon Subdivision or Combination of Common Stock</u>. If the Company at any time on or after the Issuance Date subdivides (by any stock split, stock dividend, recapitalization or otherwise) one or more classes of its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to such subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased. If the Company at any time on or after the Subscription Date combines (by combination, reverse stock split or otherwise) one or more classes of its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to such combination will be proportionately increased and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 2(b) shall become effective at the close of business on the date the subdivision or combination becomes effective.

(c) <u>Other Events</u>. If any event occurs of the type contemplated by the provisions of this Section 2 but not expressly provided for by such provisions (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights with equity features, but specifically excluding Exempt Issuances), then the Company's Board of Directors will make an appropriate adjustment in the Exercise Price and the number of Warrant Shares so as to protect the rights of the Holder; provided that no such adjustment pursuant to this Section 2(c) will increase the Exercise Price or decrease the number of Warrant Shares as otherwise determined pursuant to this Section 2.

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3. **Rights Upon Distribution Of Assets**. If the Company shall declare or make any dividend or other distribution of its assets (or rights to acquire its assets) to holders of shares of Common Stock, by way of return of capital or otherwise (including, without limitation, any distribution of cash, stock or other securities, property or options by way of a dividend, spin off, reclassification, corporate rearrangement, scheme of arrangement or other similar transaction) for which adjustment in the Exercise Price of the Warrant is not otherwise provided hereunder (a "**Distribution**"), at any time after the Issuance Date, then, in each such case, the Holder shall be entitled to participate in such Distribution to the same extent that the Holder would have participated therein if the Holder had held the number of shares of Common Stock acquirable upon complete exercise of this Warrant (without regard to any limitations or restrictions on exercise of this Warrant) immediately before the date on which a record is taken for such Distribution, or, if no such record is taken, the date as of which the record holders of shares of Common Stock are to be determined for the participation in such Distribution.

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4. **Fundamental Transactions**. The Company shall not enter into or be party to a Fundamental Transaction unless (i) the Successor Entity assumes in writing all of the obligations of the Company under this Warrant in accordance with the provisions of this Section 4 pursuant to written agreements in form and substance satisfactory to the Required Holders and approved by the Required Holders prior to such Fundamental Transaction, including agreements to deliver to each holder of Warrants in exchange for such Warrants a security of the Successor Entity evidenced by a written instrument substantially similar in form and substance to this Warrant, including, without limitation, an adjusted exercise price equal to the value for the shares of Common Stock reflected by the terms of such Fundamental Transaction, and exercisable for a corresponding number of shares of capital stock equivalent to the shares of Common Stock acquirable and receivable upon exercise of this Warrant immediately prior to such Fundamental Transaction, and satisfactory to the Required Holders, and (ii) the Successor Entity (including its Parent Entity) is a publicly traded corporation whose common stock or equivalent equity security is listed for trading on a securities exchange or market or quoted on an over-the-counter bulletin board. Upon the occurrence of any Fundamental Transaction, the Successor Entity shall succeed to, and be substituted for (so that from and after the date of such Fundamental Transaction, the provisions of this Warrant referring to the "**Company**" shall refer instead to the Successor Entity), and may exercise every right and power of the Company and shall assume all of the obligations of the Company under this Warrant with the same effect as if such Successor Entity had been named as the Company herein. Upon consummation of the Fundamental Transaction, the Successor Entity shall deliver to the Holder confirmation that there shall be issued upon exercise of this Warrant at any time after the consummation of the Fundamental Transaction, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of the Warrant immediately prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had this Warrant been exercised immediately prior to such Fundamental Transaction, as adjusted in accordance with the provisions of this Warrant. In addition to and not in substitution for any other rights hereunder, prior to the consummation of any Fundamental Transaction pursuant to which holders of shares of Common Stock are entitled to receive cash, securities or other assets with respect to or in exchange for shares of Common Stock (a "**Corporate Event**"), the Company shall make appropriate provision to ensure that the Holder will thereafter have the right to receive upon an exercise of this Warrant at any time after the consummation of the Fundamental Transaction but prior to the Expiration Date, in lieu of the shares of Common Stock (or other securities, cash, assets or other property) purchasable upon the exercise of the Warrant prior to such Fundamental Transaction, such shares of stock, securities, cash, assets or any other property whatsoever (including warrants or other purchase or subscription rights) which the Holder would have been entitled to receive upon the happening of such Fundamental Transaction had the Warrant been exercised immediately prior to such Fundamental Transaction. Provision made pursuant to the preceding sentence shall be in a form and substance reasonably satisfactory to the Required Holders. The provisions of this Section shall apply similarly and equally to successive Fundamental Transactions and Corporate Events.

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5. **Noncircumvention**. The Company hereby covenants and agrees that the Company will not, by amendment of its certificate of incorporation, bylaws, other organizational or governing documents or through any reorganization, transfer of assets, consolidation, merger, scheme of arrangement, dissolution, issue or sale of securities, or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, and will at all times in good faith carry out all the provisions of this Warrant and take all action as may be required to protect the rights of the Holder. Without limiting the generality of the foregoing, the Company (i) shall not increase the par value of any shares of Common Stock receivable upon the exercise of this Warrant above the Exercise Price then in effect, (ii) shall take all such actions as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable shares of Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any of the SPA Warrants are outstanding, take all action necessary to reserve and keep available out of its authorized and unissued shares of Common Stock, solely for the purpose of effecting the exercise of the SPA Warrants, 120% of the number of shares of Common Stock as shall from time to time be necessary to effect the exercise of the SPA Warrants then outstanding.

6. **Warrant Holder Not Deemed A Stockholder**. Except as otherwise specifically provided herein, the Holder, solely in such Person's capacity as a holder of this Warrant, shall not be entitled to vote or receive dividends or be deemed the holder of share capital of the Company for any purpose, nor shall anything contained in this Warrant be construed to confer upon the Holder, solely in such Person's capacity as the Holder of this Warrant, any of the rights of a stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger, conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, prior to the issuance to the Holder of the Warrant Shares which such Person is then entitled to receive upon the due exercise of this Warrant. In addition, nothing contained in this Warrant shall be construed as imposing any liabilities on the Holder to purchase any securities (upon exercise of this Warrant or otherwise) or as a stockholder of the Company, whether such liabilities are asserted by the Company or by creditors of the Company. Notwithstanding this Section 6, the Company shall provide the Holder with copies of the same notices and other information given to the stockholders of the Company generally, contemporaneously with the giving thereof to the stockholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. **Reissuance Of Warrants.** 

(a) <u>Transfer of Warrant</u>. If this Warrant is to be transferred, the Holder shall surrender this Warrant to the Company, whereupon the Company will forthwith issue and deliver upon the order of the Holder a new Warrant (in accordance with Section 7(d)), registered as the Holder may request, representing the right to purchase the number of Warrant Shares being transferred by the Holder and, if less than the total number of Warrant Shares then underlying this Warrant is being transferred, a new Warrant (in accordance with Section 7(d)) to the Holder representing the right to purchase the number of Warrant Shares not being transferred.

(b) <u>Lost, Stolen or Mutilated Warrant</u>. Upon receipt by the Company of evidence reasonably satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant, and, in the case of loss, theft or destruction, of any indemnification undertaking by the Holder to the Company in customary form and, in the case of mutilation, upon surrender and cancellation of this Warrant, the Company shall execute and deliver to the Holder a new Warrant (in accordance with Section 7(d)) representing the right to purchase the Warrant Shares then underlying this Warrant.

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(c) <u>Exchangeable for Multiple Warrants</u>. This Warrant is exchangeable, upon the surrender hereof by the Holder at the principal office of the Company, for a new Warrant or Warrants (in accordance with Section 7(d)) representing in the aggregate the right to purchase the number of Warrant Shares then underlying this Warrant, and each such new Warrant will represent the right to purchase such portion of such Warrant Shares as is designated by the Holder at the time of such surrender; provided, however, that no Warrants for fractional shares of Common Stock shall be given.

(d) <u>Issuance of New Warrants</u>. Whenever the Company is required to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant (i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated on the face of such new Warrant, the right to purchase the Warrant Shares then underlying this Warrant (or in the case of a new Warrant being issued pursuant to Section 7(a) or Section 7(c), the Warrant Shares designated by the Holder which, when added to the number of shares of Common Stock underlying the other new Warrants issued in connection with such issuance, does not exceed the number of Warrant Shares then underlying this Warrant), (iii) shall have an issuance date, as indicated on the face of such new Warrant which is the same as the Issuance Date, and (iv) shall have the same rights and conditions as this Warrant.

8. **Notices**. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in accordance with the Securities Purchase Agreement. The Company shall provide the Holder with prompt written notice of all actions taken pursuant to this Warrant, including in reasonable detail a description of such action and the reason therefor. Without limiting the generality of the foregoing, the Company will give written notice to the Holder (i) immediately upon any adjustment of the Exercise Price or the number of Warrant Shares, setting forth in reasonable detail, and certifying, the calculation of such adjustment and (ii) at least fifteen days (or such lesser period agreed to in writing by the Required Holders) prior to the date on which the Company closes its books or takes a record (A) with respect to any dividend or distribution upon the shares of Common Stock, (B) with respect to any grant, issuance or sale of any Options, Convertible Securities or rights to purchase stock, warrants, securities or other property to all holders of shares of Common Stock or (C) for determining rights to vote with respect to any Fundamental Transaction, dissolution or liquidation, provided in each case that such information shall be made known to the public prior to or in conjunction with such notice being provided to the Holder.

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9. **Amendment and Waiver**. No failure or delay of the Holder in exercising any power or right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude any other or further exercise thereof or the exercise of any other right or power. No notice or demand on the Company in any case shall entitle the Company to any other or future notice or demand in similar or other circumstances. The rights and remedies of the Holder are cumulative and not exclusive of any rights or remedies which it would otherwise have. Except as otherwise provided herein, the provisions of this Warrant may be amended and the Company may take any action herein prohibited, or omit to perform any act herein required to be performed by it, only if the Company has obtained the written consent of the Required Holders; provided that no such action may increase the exercise price of any SPA Warrant or decrease the number of shares or class of stock obtainable upon exercise of any SPA Warrant, or disproportionately and adversely affect any of the rights or obligations of the Holder relative to the comparable rights or obligations of the other Holders, without the written consent of the Holder. No such amendment shall be effective to the extent that it applies to less than all of the holders of the SPA Warrants then outstanding. Any such amendment, modification or waiver effected pursuant to and in accordance with the provisions of this Section shall be binding upon the holders of all SPA Warrants and Warrant Shares, upon each future holder thereof and upon the Company. In the event of any such amendment, modification or waiver, the Company shall give prompt notice thereof to all holders of SPA Warrants and Warrant Shares and, if appropriate, notation thereof shall be made on all SPA Warrants thereafter surrendered for registration of transfer or exchange.

10. **Governing Law**. This Warrant shall be governed by and construed and enforced in accordance with, and all questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the laws of the state of New York, without giving effect to any choice of law or conflict of law provision or rule that would cause the application of the laws of any other jurisdiction.

11. **Construction; Headings**. This Warrant shall be deemed to be jointly drafted by the Company and all the Buyers and shall not be construed against any person as the drafter hereof. The headings of this Warrant are for convenience of reference and shall not form part of, or affect the interpretation of, this Warrant.

12. **Dispute Resolution**. In the case of a dispute as to the determination of the Exercise Price or the arithmetic calculation of the Warrant Shares, the Company shall submit the disputed determinations or arithmetic calculations within two Business Days of receipt of the Exercise Notice giving rise to such dispute, as the case may be, to the Holder. If the Holder and the Company are unable to agree upon such determination or calculation of the Exercise Price or the Warrant Shares within three Business Days of such disputed determination or arithmetic calculation being submitted to the Holder, then the Company shall, within two Business Days thereafter submit the disputed determination of the Exercise Price and/or the disputed arithmetic calculation of the Warrant Shares to the Company's independent public accounting firm. The Company shall cause at its expense its independent public accounting firm to perform the determinations or calculations and notify the Company and the Holder of the results no later than ten Business Days from the time it receives the disputed determinations or calculations. Such accounting firm's determination or calculation, as the case may be, shall be binding upon all parties absent demonstrable error.

13. **Remedies, Other Obligations, Breaches and Injunctive Relief**. The remedies provided in this Warrant shall be cumulative and in addition to all other remedies available under this Warrant, at law or in equity (including a decree of specific performance and/or other injunctive relief), and nothing herein shall limit the right of the Holder to pursue actual damages for any failure by the Company to comply with the terms of this Warrant. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to the Holder and that the remedy at law for any such breach may be inadequate. The Company therefore agrees that, in the event of any such breach or threatened breach, the Holder shall be entitled, in addition to all other available remedies, to an injunction restraining any breach or threatened breach, without the necessity of showing economic loss and without any bond or other security being required.

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14. **Transfer**. (a) This Warrant may be offered for sale, sold, transferred or assigned without the consent of the Company, in compliance with applicable securities laws, whereupon the transferee shall become a 'Holder' hereunder with respect to the portion so transferred and shall be entitled to all rights of a Holder hereunder.

(b) The Company shall be entitled to treat the registered Holder of this Warrant as the absolute owner hereof and shall incur no liability for the issuance of shares of Common Stock or for other action taken hereunder in good faith based upon such ownership until such time as a written assignment of this Warrant is effected by such registered owner, which assignment has been delivered to the Company and satisfies the requirements of Sections 7(a) and 14(a) hereof.

15. **Certain Definitions**. For purposes of this Warrant, the following terms shall have the following meanings:

(a) "**Bloomberg**" means Bloomberg Financial Markets.

(b) "**Business Day**" means any day other than Saturday, Sunday or other day on which commercial banks in The City of New York are authorized or required by law to remain closed.

(c) "**Common Stock**" means (i) the Company's Common Stock, par value $0.0001 per share, and (ii) any share capital into which such shares of Common Stock shall have been changed or any share capital resulting from a reclassification of such shares of Common Stock.

(d) "**Common Stock Equivalents**" means any securities or rights of the Company that are convertible into, exchangeable for, or exercisable to acquire shares of Common Stock, or that otherwise entitle the holder thereof to receive, directly or indirectly, shares of Common Stock or the economic equivalent thereof, including, without limitation, options, warrants, convertible notes or other debt securities, convertible or exchangeable preferred stock, rights, subscription rights or warrants, restricted stock units, stock appreciation rights and any other rights or arrangements that provide for, or are intended to provide for, settlement in shares of Common Stock (or in cash based on the value of Common Stock), in each case whether outstanding on the date hereof or hereafter issued and whether or not then presently convertible, exchangeable or exercisable.

(e) "**Common Shares Deemed Outstanding**" means, at any given time, the number of shares of Common Stock actually outstanding at such time, plus the number of shares of Common Stock deemed to be outstanding pursuant to Sections 2(a)(i) and 2(a)(ii) hereof regardless of whether the Options or Convertible Securities are actually exercisable at such time, but excluding any shares of Common Stock owned or held by or for the account of the Company or issuable upon exercise of the SPA Warrants.

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(f) "**Convertible Securities**" means any stock or securities (other than Options) directly or indirectly convertible into or exercisable or exchangeable for Common Stock.

(g) "**Exempt Issuance**" means the following issuances of shares of Common Stock or Common Stock Equivalents by the Company that shall not give rise to any adjustment of the Exercise Price or number of Warrant Shares pursuant to the anti-dilution provisions of this Warrant: (a) securities issued upon the exercise, conversion or exchange of options, warrants or other convertible or exchangeable securities outstanding as of the date of this Warrant, provided that the terms of such securities are not amended to lower the exercise, conversion or exchange price thereof, extend the term thereof or otherwise increase the number of shares issuable thereunder; (b) securities issued pursuant to stock option plans, restricted stock plans, stock purchase plans or other equity incentive plans or arrangements approved by the Board of Directors, in each case for compensatory purposes to employees, officers, directors or consultants; (c) securities issued as full or partial consideration in connection with mergers, acquisitions, joint ventures, strategic alliances, licensing arrangements, technology or asset acquisitions, or similar bona fide strategic transactions (but not for the purpose of raising capital), as approved by the Board of Directors; (d) securities issued in connection with bona fide commercial credit arrangements, equipment financings, real property or equipment leases, or similar transactions with lenders, lessors or other financial institutions (but not for the purpose of raising capital); (e) shares of Common Stock issued in connection with stock splits, stock dividends or other distributions on shares of Common Stock, or recapitalizations; and (f) securities issued to underwriters as underwriting discounts or commissions in connection with a bona fide public offering.

(h) "**Expiration Date**" means the date that is ten (10) years after the Issuance Date or, if such date falls on a day other than a Business Day or on which trading does not take place on the exchange or market on which the Common Stock is then listed (a "**Holiday**"), the next date that is not a Holiday.

(i) "**Fundamental Transaction**" means a transaction or series of transactions in which the Company shall, directly or indirectly, (i) consolidate or merge with or into (whether or not the Company is the surviving corporation) another Person, or (ii) sell, assign, transfer, convey or otherwise dispose of all or substantially all of the properties or assets of the Company to another Person, (iii) allow another Person to make a purchase, tender or exchange offer that is accepted by the holders of more than the 50% of the outstanding shares of Common Stock (including any shares of Common Stock held by the Person or Persons making or party to, or associated or affiliated with the Persons making or party to, such purchase, tender or exchange offer), (iv) consummate a stock purchase agreement or other business combination (including, without limitation, a reorganization, recapitalization or spin-off) with another Person whereby such other Person acquires more than the 50% of the outstanding shares of Common Stock (including any shares of Common Stock held by the other Person or other Persons making or party to, or associated or affiliated with the other Persons making or party to, such stock purchase agreement or other business combination), or (v) reorganize, recapitalize or reclassify its Common Stock.

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(j) "**Options**" means any rights, warrants or options to subscribe for or purchase Common Stock or Convertible Securities.

(k) "**Parent Entity**" of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is listed for trading on a securities exchange or market or quoted on an over-the-counter bulletin board, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.

(l) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof.

(m) "**Registration Rights Agreement**" means that certain Registration Rights Agreement, entered into on March [ ], 2026, by and between the Company and those certain investor signatories thereto.

(n) "**Required Holders**" means the holders of the SPA Warrants representing at least a majority of the shares of Common Stock underlying the SPA Warrants then outstanding.

(o) "**Successor Entity**" means the Person (or, if so elected by the Required Holders, the Parent Entity) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Required Holders, the Parent Entity) with which such Fundamental Transaction shall have been entered into.

**[Signature Page Follows]**

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**IN WITNESS WHEREOF**, the Company has caused this Warrant to be duly executed as of the Issuance Date set out above.

TRACK GROUP, INC. <br> <br> By: 

Name: <br> Title:

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EXHIBIT A

EXERCISE NOTICE<br> TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS WARRANT

FIRSTIME DESIGN LTD.

The undersigned holder hereby exercises the right to purchase _________________ shares of Common Stock ("**Warrant Shares**") of Track Group, Inc., a Delaware corporation (the "**Company**"), evidenced by the attached Warrant (the "**Warrant**"). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Form of Exercise Price</u>. The Holder intends that payment of the Exercise Price shall be made as:

____________ a "Cash Exercise" with respect to _________________ Warrant Shares; and/or

____________ a "Cashless Exercise" with respect to _______________ Warrant Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payment of Exercise Price</u>. In the event that the holder has elected a Cash Exercise with respect to some or all of the Warrant Shares to be issued pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of $___________________ to the Company in accordance with the terms of the Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Delivery of Warrant Shares</u>. The Company shall deliver to the holder __________ Warrant Shares in accordance with the terms of the Warrant.

Date: ____________ __, ______<br>

Name of Registered Holder

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| | |
|:---|:---|
| By: |  |
|  | Name: |
|  | Title: |

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ACKNOWLEDGMENT

The Company hereby acknowledges this Exercise Notice and hereby directs its transfer agent to issue the above indicated number of shares of Common Stock.

TRACK GROUP, INC. <br>By:  

Name: <br> Title:

## Exhibit 10.1

**Exhibit 10.1**

EXECUTION VERSION

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**CREDIT AGREEMENT**

**dated as of April 30, 2026, among**

**TRACK GROUP, INC.,** <br> **and**

**EACH OF ITS AFFILIATES PARTY HERETO, as Borrowers, THE VARIOUS FINANCIAL INSTITUTIONS PARTY HERETO,**<br> **as Lenders, and**

**CHATHAM CAPITAL MANAGEMENT, LLC,** <br> **as Administrative Agent and Lead Arranger**

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**TABLE OF CONTENTS**

**Page**

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| | | | |
|:---|:---|:---|:---|
| SECTION 1 | DEFINITIONS. | DEFINITIONS. | 1 |
| 1.1 | Definitions | Definitions | 1 |
| 1.2 | Certain Interpretive Provisions. | Certain Interpretive Provisions. | 22 |
| 1.3 | Accounting and Other Terms. | Accounting and Other Terms. | 23 |
| SECTION 2 | COMMITMENTS OF THE LENDERS; BORROWING AND CONVERSION PROCEDURES. | COMMITMENTS OF THE LENDERS; BORROWING AND CONVERSION PROCEDURES. | 23 |
| 2.1 | Commitments | Commitments | 23 |
|  | 2.1.1 | Revolving Commitment | 23 |
|  | 2.1.2 | Term Loan Commitments. | 23 |
| 2.2 | Loan Procedures. | Loan Procedures. | 24 |

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 <br> 2.2.1 [Reserved] 24 <br> 2.2.2 Borrowing Procedures. 24

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| | | |
|:---|:---|:---|
| 2.3 | Commitments Several | 24 |
| 2.4 | [Reserved] | 24 |
| 2.5 | Defaulting Lenders | 24 |
| SECTION 3 | EVIDENCING OF LOANS. | 25 |
| 3.1 | Notes | 25 |
| 3.2 | Recordkeeping | 25 |
| SECTION 4 | INTEREST. | 26 |
| 4.1 | Interest Rates | 26 |

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| | | |
|:---|:---|:---|
| 4.1.1 | Cash Interest (Revolving Loans) | 26 |
| 4.1.2 | Cash Interest (Term Loans) | 26 |
| 4.1.3 | PIK Interest Rates | 26 |
| 4.1.4 | Default Rate | 26 |
| 4.1.5 | Interest Payment Dates | 26 |

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| | | |
|:---|:---|:---|
| 4.2 | [Reserved] | 26 |
| 4.3 | Computation of Interest | 27 |
| SECTION 5 | FEES. | 27 |
| 5.1 | Unused Fee | 27 |
| 5.2 | Administrative Agent's Fees | 27 |
| 5.3 | Prepayment Fee | 27 |
| SECTION 6 | REDUCTION OR TERMINATION OF COMMITMENTS; PREPAYMENTS; REPAYMENTS. | 27 |
| 6.1 | Reduction or Termination of Commitments. | 27 |

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| | | |
|:---|:---|:---|
| 6.1.1 | Voluntary Reduction or Termination of the Revolving Commitments. | 27 |
| 6.1.2 | Voluntary Reduction or Termination of the Interest Line Loan Commitments | 27 |
| 6.1.3 | All Reductions of Commitments | 28 |

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 <br> 6.2 Prepayments. 28

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(continued)

**Page**

6.2.1 Voluntary Prepayments 28

6.2.2 Mandatory Prepayments 28

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| | | | |
|:---|:---|:---|:---|
| 6.3 | Manner of Prepayments. | Manner of Prepayments. | 29 |
|  | 6.3.1 | All Prepayments | 29 |
| 6.4 | Repayments. | Repayments. | 29 |
|  | 6.4.1 | Revolving Loans | 29 |
|  | 6.4.2 | Term A Loans | 29 |

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6.4.3 Interest Line Loans 29

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| | | |
|:---|:---|:---|
| SECTION 7 | MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES. | 29 |
| 7.1 | Making of Payments. | 29 |
| 7.2 | Application of Certain Payments. | 30 |
| 7.3 | Due Date Extension | 31 |
| 7.4 | Setoff | 31 |
| 7.5 | Proration of Payments | 31 |
| 7.6 | Taxes. | 31 |
| SECTION 8 | INCREASED COSTS. | 34 |
| 8.1 | Increased Costs. | 34 |
| 8.2 | [Reserved]. | 35 |
| 8.3 | [Reserved] | 35 |
| 8.4 | [Reserved] | 35 |
| 8.5 | Mitigation of Circumstances; Replacement of Lenders. | 35 |
| 8.6 | Conclusiveness of Statements; Survival of Provisions | 35 |
| SECTION 9 | REPRESENTATIONS AND WARRANTIES. | 36 |
| 9.1 | Organization | 36 |
| 9.2 | Authorization; No Conflict. | 36 |
| 9.3 | Validity and Binding Nature | 36 |
| 9.4 | Financial Condition | 36 |
| 9.5 | No Material Adverse Change | 36 |
| 9.6 | Litigation and Contingent Liabilities | 36 |
| 9.7 | Ownership of Properties; Liens | 37 |
| 9.8 | Equity Ownership | 37 |
| 9.9 | Pension Plans. | 37 |
| 9.10 | Investment Company Act | 38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.11 | Compliance with Laws | 38 |
| 9.12 | Regulation U | 38 |
| 9.13 | Taxes | 38 |
| 9.14 | Solvency, etc | 38 |
| 9.15 | Environmental Matters | 39 |
| 9.16 | Insurance | 39 |
| 9.17 | Real Property | 39 |
| 9.18 | Information | 39 |
| 9.19 | Location of Bank Accounts | 40 |
| 9.20 | Burdensome Obligations | 40 |
| 9.21 | Intellectual Property | 40 |

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**Page**

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| | | |
|:---|:---|:---|
| 9.22 | Material Contracts; Material Operational Assets | 40 |
| 9.23 | Employee and Labor Matters | 41 |
| 9.24 | No Bankruptcy Filing | 41 |
| 9.25 | Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN | 41 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 9.26 | Locations of Collateral | 41 |
| 9.27 | Security Interests | 41 |
| 9.28 | No Default | 42 |
| 9.29 | Hedging Agreements | 42 |
| 9.30 | OFAC | 42 |
| 9.31 | Patriot Act | 42 |
| 9.32 | Related Agreements. | 42 |
| 9.33 | [Reserved] | 43 |
| 9.34 | Customers and Suppliers | 43 |
| SECTION 10 | AFFIRMATIVE COVENANTS. | 43 |
| 10.1 | Reports, Certificates and Other Information | 43 |

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10.1.1 Annual Report 43

10.1.2 Interim Reports 44

10.1.3 Compliance Certificates 44

10.1.4 Reports to the SEC and to Shareholders 44

10.1.5 Notice of Default, Litigation, and ERISA Matters 44

10.1.6 Real Estate 45

10.1.7 Management Reports 45

10.1.8 Projections 45

10.1.9 Material Contract Notices 46

10.1.10 [Reserved] 46

10.1.11 Other Information 46

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| | | |
|:---|:---|:---|
| 10.2 | Books, Records, and Inspections | 46 |
| 10.3 | Maintenance of Property; Insurance. | 47 |
| 10.4 | Compliance with Laws; Payment of Taxes and Liabilities. | 48 |
| 10.5 | Maintenance of Existence, etc | 48 |
| 10.6 | Use of Proceeds | 48 |
| 10.7 | Employee Benefit Plans. | 48 |
| 10.8 | Environmental Matters | 49 |
| 10.9 | Further Assurances | 49 |
| 10.10 | Deposit Accounts | 50 |
| 10.11 | Board Observation Rights | 50 |
| 10.12 | Material Operational Assets | 51 |
| 10.13 | Post-Closing Matters | 51 |
| SECTION 11 | NEGATIVE COVENANTS | 52 |
| 11.1 | Debt | 52 |
| 11.2 | Liens | 53 |
| 11.3 | Restricted Payments | 54 |
| 11.4 | Mergers, Consolidations, Sales | 55 |
| 11.5 | Modification of Certain Documents; Organizational Form. | 56 |
| 11.6 | Transactions with Affiliates | 56 |

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**Page**

11.7 Inconsistent Agreements 57

11.8 Business Activities 57

11.9 Investments 57

11.10 Restriction of Amendments to Certain Documents 58

11.11 Fiscal Year 58

11.12 Financial Covenants 58

11.12.1 Minimum EBITDA 58

11.12.2 Fixed Charge Coverage Ratio 58

11.12.3 Total Debt to EBITDA Ratio 59

11.12.4 Capital Expenditures 59

11.12.5 Minimum Liquidity 60

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| | | |
|:---|:---|:---|
| 11.13 | Compliance with Laws | 60 |
| SECTION 12 | EFFECTIVENESS; CONDITIONS OF LENDING, ETC. | 60 |
| 12.1 | Conditions to Effectiveness | 60 |

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| | | | |
|:---|:---|:---|:---|
|  | 12.1.1 | Agreement, Notes, and other Documents | 60 |
|  | 12.1.2 | Authorization Documents | 61 |
|  | 12.1.3 | Consents, etc | 61 |
|  | 12.1.4 | Letter of Direction | 61 |
|  | 12.1.5 | Collateral and Diligence Questionnaire | 61 |
|  | 12.1.6 | [Reserved] | 61 |
|  | 12.1.7 | [Reserved] | 61 |
|  | 12.1.8 | [Reserved] | 61 |
|  | 12.1.9 | Opinions of Counsel | 61 |
|  | 12.1.10 | Insurance | 61 |
|  | 12.1.11 | Related Transactions. | 62 |
|  | 12.1.12 | Payment of Fees | 62 |
|  | 12.1.13 | Debt to be Discharged | 62 |
|  | 12.1.14 | Solvency Certificate | 62 |
|  | 12.1.15 | Search Results; Lien Terminations | 62 |
|  | 12.1.16 | Filings, Registrations, and Recordings | 62 |
|  | 12.1.17 | Closing Certificate | 63 |
|  | 12.1.18 | Financial Statements; Appraisals | 63 |
|  | 12.1.19 | No Material Adverse Effect | 63 |
|  | 12.1.20 | Investment Documents | 63 |
|  | 12.1.21 | Financial Tests | 63 |
|  | 12.1.22 | Diligence | 63 |
|  | 12.1.23 | Financial Condition | 63 |
|  | 12.1.24 | Background Checks | 63 |
|  | 12.1.25 | Approvals | 63 |
|  | 12.1.26 | Non-Compete | 63 |
|  | 12.1.27 | Other | 64 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 | Conditions Precedent to all Loans | Conditions Precedent to all Loans | 64 |
|  | 12.2.1 | Compliance with Warranties, No Default, etc | 64 |
|  | 12.2.2 | Financial Tests | 64 |
|  | 12.2.3 | Confirmatory Certificate | 64 |

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**Page**

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 | Conditions Precedent to each Interest Line Loan | Conditions Precedent to each Interest Line Loan | 64 |
|  | 12.3.1 | Use of Proceeds | 64 |
|  | 12.3.2 | Financial Tests | 64 |
|  | 12.3.3 | Confirmatory Certificate | 65 |
| SECTION 13 | EVENTS OF DEFAULT AND THEIR EFFECT. | EVENTS OF DEFAULT AND THEIR EFFECT. | 65 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 | Events of Default | Events of Default | 65 |

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13.1.1 Non-Payment of the Loans, etc 65

13.1.2 Non-Payment of Other Debt 65

13.1.3 [Reserved] 65

13.1.4 Bankruptcy, Insolvency, etc 65

13.1.5 Non-Compliance with Loan Documents. 66

13.1.6 Representations; Warranties 66

13.1.7 Pension Plans 66

13.1.8 Judgments 66

13.1.9 Invalidity of Loan Documents, etc 66

13.1.10 Change of Control 66

13.2 Effect of Event of Default 66

13.3 Credit Bidding 67

13.4 Equity Cure Right 67

13.4.1 Cure Notice 67

13.4.2 Equity Cure Securities 67

13.4.3 No Event of Default 68

13.4.4 Cure 68

13.4.5 Subsequent Periods 68

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| | | |
|:---|:---|:---|
| SECTION 14 | AGENCY. | 68 |
| 14.1 | Appointment and Authorization | 68 |
| 14.2 | [Reserved] | 68 |
| 14.3 | Delegation of Duties | 69 |
| 14.4 | Exculpation | 69 |
| 14.5 | Reliance | 69 |
| 14.6 | Notice of Default | 69 |
| 14.7 | Credit Decision | 70 |
| 14.8 | Indemnification | 70 |
| 14.9 | Administrative Agent in Individual Capacities | 70 |
| 14.10 | Successor Administrative Agent | 71 |
| 14.11 | Collateral Matters | 71 |
| 14.12 | Restriction on Actions by Lenders | 72 |
| 14.13 | Administrative Agent May File Proofs of Claim. | 72 |
| 14.14 | Other Agents; Arrangers and Managers | 72 |
| 14.15 | Protective Advances | 73 |
| SECTION 15 | GENERAL. | 73 |
| 15.1 | Waiver; Amendments. | 73 |
| 15.2 | Confirmations | 74 |
| 15.3 | Notices. | 74 |

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**Page**

15.3.1 Generally 74

15.3.2 Electronic Communications. 75

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 Computations 75

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 Costs, Expenses and Other Taxes 75

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6 Assignments; Participations. 76

15.6.1 Assignments. 76

15.6.2 Participations 77

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7 Register 78

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| | | |
|:---|:---|:---|
| 15.8 | Governing Law | 78 |
| 15.9 | Confidentiality | 78 |
| 15.10 | Severability | 79 |
| 15.11 | Nature of Remedies | 79 |
| 15.12 | Entire Agreement | 79 |
| 15.13 | Counterparts | 79 |
| 15.14 | Successors and Assigns | 79 |
| 15.15 | Captions | 80 |
| 15.16 | Customer Identification—USA Patriot Act Notice | 80 |
| 15.17 | **Indemnification by Loan Parties** | 80 |
| 15.18 | Non-Liability of Lenders. | 81 |
| 15.19 | Forum Selection and Consent to Jurisdiction | 81 |
| 15.20 | Waiver of Jury Trial | 82 |
| 15.21 | [Reserved] | 82 |
| 15.22 | Acknowledgement and Consent to Bail-In of EEA Financial Institutions | 82 |
| 15.23 | Erroneous Payments. | 82 |
| 15.24 | Currency Indemnity | 84 |
| 15.25 | Investment Unit | 85 |
| SECTION 16 | JOINT AND SEVERAL LIABILITY | 85 |
| 16.1 | Applicability of Terms | 85 |
| 16.2 | Joint and Several Liability | 85 |
| 16.3 | Benefits and Best Interests | 85 |
| 16.4 | Corporate Benefit and Financial Assistance | 85 |
| 16.5 | Accommodations | 85 |
| 16.6 | Maximum Amount | 86 |
| 16.7 | Joint Liability Payments | 86 |
| 16.8 | Financial Condition | 86 |
| 16.9 | Administrative Agent Authorizations | 86 |
| 16.10 | Unconditional Obligations | 87 |
| 16.11 | Notices | 87 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 16.12 | No Impairment of Obligations or Limitation of Liability | 88 |
| 16.13 | Rights of Contribution and Indemnification | 88 |
| 16.14 | Subrogation | 88 |
| SECTION 17 | APPOINTMENT OF BORROWER REPRESENTATIVE. | 88 |
| 17.1 | Appointment | 88 |
| 17.2 | Additional Appointments | 88 |
| 17.3 | Reliance | 88 |
| 17.4 | Termination or Change of Borrower Representative | 89 |

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-vi-

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**ANNEXES**

ANNEX A Lenders and Pro Rata Shares <br> ANNEX B Addresses for Notices

SCHEDULES

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| | |
|:---|:---|
| SCHEDULE 9.6 | Litigation and Contingent Liabilities |
| SCHEDULE 9.8 | Equity Ownership |
| SCHEDULE 9.9(a) | Pension Plans |
| SCHEDULE 9.13 | Tax Audits and Liabilities |
| SCHEDULE 9.16 | Insurance |
| SCHEDULE 9.17 | Real Property |
| SCHEDULE 9.19 | Deposit and Securities Accounts |
| SCHEDULE 9.21 | Intellectual Property |
| SCHEDULE 9.22 | Material Contracts |
| SCHEDULE 9.25 | Loan Party Information |
| SCHEDULE 9.26 | Locations of Collateral |
| SCHEDULE 10.13 | Post-Closing Matters |
| SCHEDULE 11.1 | Existing Debt |
| SCHEDULE 11.2 | Existing Liens |
| SCHEDULE 11.9 | Investments |

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EXHIBITS

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| | |
|:---|:---|
| EXHIBIT A | Form of Note (Section 3.1) |
| EXHIBIT B | Form of Compliance Certificate (Section 10.1.3) |
| EXHIBIT C | Form of Assignment Agreement (Section 15.6.1) |
| EXHIBIT D | Form of Notice of Borrowing (Section 2.2.2) |

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-vii-

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**CREDIT AGREEMENT**

THIS CREDIT AGREEMENT dated as of April 30, 2026 (this "<u>Agreement</u>"), is entered into among TRACK GROUP, INC., a Delaware corporation (the "<u>Company</u>"); each of the Affiliates of the Company that are or may from time to time become parties hereto (together with the Company, the "<u>Borrowers</u>"); the financial institutions that are or may from time to time become parties hereto (together with their respective successors and permitted assigns, the "<u>Lenders</u>"); and CHATHAM CAPITAL MANAGEMENT, LLC, a Delaware limited liability company ("<u>Chatham Capital</u>"), as administrative agent for the Lenders.

The Company has requested that the Lenders make Loans to provide the funds required to effect a portion of the Related Transactions (including to discharge the Debt to be Discharged) and to provide for the ongoing general corporate purposes and working capital needs of Borrowers as further provided in this Agreement, up to an aggregate principal amount of $24,000,000 in the form of (a) Revolving Loans to Borrowers from time to time in an aggregate amount not to exceed $2,000,000, (b) Term Loans to Borrowers on the Closing Date in an aggregate principal amount not to exceed $21,000,000, and (c) Interest Line Loans to Borrowers during the Interest Line Loan Availability Period in an aggregate principal amount not to exceed $1,000,000, and the Lenders are willing to do so on the terms and conditions set forth in this Agreement.

To secure the Loans and other Obligations, Borrowers and the other Loan Parties are granting to Administrative Agent, for the benefit of Administrative Agent and Lenders, a security interest in and lien upon substantially all of Borrowers' and the other Loan Parties' real and personal property.

In consideration of the mutual agreements contained in this Agreement, the parties hereby agree as follows:

SECTION 1 DEFINITIONS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Definitions</u>. When used in this Agreement the following terms have the following meanings:

"<u>Account Debtor</u>" is used as defined in the Guaranty and Collateral Agreement.

"<u>Acquisition</u>" means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the acquisition of all or substantially all of the assets of a Person, or of all or substantially all of any business or division of a Person, (b) the acquisition of in excess of 50% of the Equity Interests of any Person, or otherwise causing any Person to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person that is already a Subsidiary).

"<u>Administrative Agent</u>" means Chatham Capital in its capacity as administrative agent for the Lenders under this Agreement and any successor thereto in that capacity.

"<u>Administrative Agent Assignee</u>" is defined in <u>Section</u><u> </u><u>15.23</u>.

"<u>ADSS</u>" means ADS Securities LLC, a company formed under the laws of the United Arab Emirates.

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"<u>Affiliate</u>" of any Person means (a) any other Person which, directly or indirectly, controls or is controlled by or is under common control with that Person, (b) any officer or director of that Person and (c) with respect to any Lender, any entity administered or managed by that Lender or an Affiliate or investment advisor thereof and which is engaged in making, purchasing, holding or otherwise investing in commercial loans. A Person will be deemed to be "controlled by" any other Person if that other Person possesses, directly or indirectly, power to vote 10% or more of the securities (on a fully diluted basis) having ordinary voting power for the election of directors or managers or power to direct or cause the direction of the management and policies of that Person whether by contract or otherwise. Unless expressly stated otherwise in this Agreement, none of the following Persons will be deemed an Affiliate of any Loan Party: (i) Administrative Agent; or (ii) any Lender.

"<u>Affiliated Funds</u>" means, with respect to any Person, a fund that is an Affiliate of that Person, that invests in portfolio companies and that is managed by that Person or by the same management company that manages that Person.

"<u>Agent Fee Letter</u>" means the fee letter dated as of the date of this Agreement among Borrowers and Administrative Agent.

"<u>Agreement</u>" is defined in the introductory clause of this Agreement.

"<u>Allocable Amount</u>" is defined in <u>Section</u><u> </u><u>16.7</u>.

"<u>Approved Fund</u>" means (a) any Person (other than a natural person) engaged in making, purchasing, holding, or investing in commercial loans and similar extensions of credit and that is advised, administered, or managed by a Lender, an Affiliate of a Lender (or an entity or an Affiliate of an entity that administers, advises or manages a Lender); (b) with respect to any Lender that is an investment fund, any other investment fund that invests in loans and that is advised, administered or managed by the same investment advisor as that Lender or by an Affiliate of that investment advisor; and (c) any third party that provides "warehouse financing" to a Person described in <u>clause</u><u> </u><u>(a)</u> or <u>(b)</u> (and any Person described in <u>clause</u><u> </u><u>(a)</u> or <u>(b)</u> will also be deemed an Approved Fund with respect to any such third party providing warehouse financing).

"<u>Asset Disposition</u>" means the sale, lease, assignment, disposition, or other transfer for value by any Loan Party to any Person of any asset of that Loan Party (including, the loss, destruction or damage of any material portion thereof or any actual or threatened (in writing to any Loan Party) condemnation, confiscation, requisition, seizure or taking of a material portion thereof) other than (a) the sale, lease, assignment, disposition, or other transfer for value of any asset (including, the loss, destruction or damage of any material portion thereof or any actual or threatened (in writing to any Loan Party) condemnation, confiscation, requisition, seizure or taking of a material portion thereof) which is to be replaced, and is in fact replaced, within 180 days with another asset performing the same or similar function; (b) the sale or lease of inventory in the ordinary course of business; (c) any sale, lease, assignment, disposition, or other transfer for value between or among Borrowers; (d) liquidation of Cash Equivalent Investments into cash in the ordinary course of business, and (e) other sales, leases, assignments, dispositions, or other transfers for value, the Net Cash Proceeds of which do not exceed $250,000 in the aggregate in any Fiscal Year.

"<u>Assignee</u>" is defined in <u>Section</u><u> </u><u>15.6.1</u>.

"<u>Assignment Agreement</u>" is defined in <u>Section</u><u> </u><u>15.6.1</u>.

"<u>Bail-In Action</u>" means the exercise of any Write-Down and Conversion Powers by the applicable EEA Resolution Authority in respect of any liability of an EEA Financial Institution.

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"<u>Bail-In Legislation</u>" means, with respect to any EEA Member Country implementing Article 55 of Directive 2014/59/EU of the European Parliament and of the Council of the European Union, the implementing law for such EEA Member Country from time to time which is described in the EU Bail-In Legislation Schedule.

"<u>Bankruptcy Code</u>" means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. § 101 et seq.), as amended and in effect from time to time and the regulations issued from time to time thereunder.

"<u>Borrower</u>" is defined in the introductory clause of this Agreement.

"<u>Canadian Borrower</u>" means each Borrower organized under the laws of Canada or any province or territory thereof.

"<u>Borrower Representative</u>" means the Company or any other Person appointed as "Borrower Representative" under and in accordance with <u>Section</u><u> </u><u>17</u>.

"<u>Business Day</u>" means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the laws of, or are in fact closed in, New York.

"<u>Business Interruption Proceeds</u>" means cash proceeds received by any Loan Party pursuant to business interruption policies of insurance.

"<u>Capital Expenditures</u>" means all expenditures that, in accordance with GAAP, would be required to be capitalized and shown on the consolidated balance sheet of the Company and its Subsidiaries, including expenditures in respect of Capital Leases, but excluding any such expenditures made in connection with the replacement, substitution, or restoration of assets to the extent financed (i) from insurance proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets being replaced or restored, (ii) with awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced, (iii) with assets traded or exchanged for that replacement, substitution, or restoration of assets, or (iv) with Net Cash Proceeds from a sale, lease, assignment, disposition, or other transfer for value of the type specifically described in clause (a) of the definition of "Asset Disposition."

"<u>Capital Lease</u>" means, with respect to any Person, any lease of (or other agreement conveying the right to use) any real or personal property by that Person that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of that Person.

"<u>Cash Collateralize</u>" means, with respect to any inchoate, contingent, or other Obligations, the delivery of cash to Administrative Agent, as security for the payment of those Obligations, in an amount equal to Administrative Agent's good faith estimate of the amount due or to become due, including all fees and other amounts relating to those Obligations. Each of "<u>Cash Collateral</u>" and "<u>Cash Collateralization</u>" has a correlative meaning.

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"<u>Cash Equivalent Investment</u>" means, at any time, (a) any evidence of Debt, maturing not more than one year after that time, issued or guaranteed by the United States Government or any agency thereof; (b) commercial paper, maturing not more than one year from the date of issue, or corporate demand notes, in each case (unless issued by a Lender or its holding company) rated at least A-l by Standard & Poor's Ratings Services, a division of The McGraw-Hill Companies, Inc. or P-l by Moody's Investors Service, Inc.; (c) any certificate of deposit, time deposit, or banker's acceptance, maturing not more than one year after that time, or any overnight Federal Funds transaction that is issued or sold by any Lender or its holding company (or by a commercial banking institution that is a member of the Federal Reserve System and has a combined capital and surplus and undivided profits of not less than $500,000,000); (d) any repurchase agreement entered into with any Lender (or commercial banking institution of the nature referred to in clause (c)) which (i) is secured by a fully perfected security interest in any obligation of the type described in any of clauses (a) through (c) above and (ii) has a market value at the time that repurchase agreement is entered into of not less than 100% of the repurchase obligation of that Lender (or other commercial banking institution) thereunder; (e) money market accounts or mutual funds which invest exclusively in assets satisfying the foregoing requirements; and (f) other short-term liquid investments approved in writing by Administrative Agent.

"<u>Change in Law</u>" means the adoption or phase-in of, or any change in, in each case after the date of this Agreement, any applicable law, rule, or regulation, or any change in the interpretation or administration of any applicable law, rule, or regulation by any governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender with any request or directive (whether or not having the force of law) of any such authority, central bank, or comparable agency. For purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, or directives thereunder or issued in connection therewith, and all requests, rules, guidelines, or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, will, in each case, be deemed to have been adopted and gone into effect after the date of this Agreement.

"<u>Change of Control</u>" means the occurrence of any of the following events: (a) any "person" or "group" (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), but after giving effect to the Related Transactions (as applicable) and excluding any employee benefit plan of such person or its subsidiaries, and any person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) becomes the "beneficial owner" (as defined in Rules 13d-3 and 13d-5 under the Exchange Act), directly or indirectly, of Equity Interests representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding Equity Interests of the Company; (b) the occupation of a majority of the seats (other than vacant seats) on the board of directors of the Company by Persons who were neither (i) nominated by the board of directors of the Company nor (ii) appointed by directors so nominated; (c) except to the extent a merger or consolidation transaction is expressly permitted by <u>Section</u><u> </u><u>11.4</u> or a liquidation or dissolution of a domestic Wholly-Owned Subsidiary of a Borrower is expressly permitted by <u>Section</u><u> </u><u>11.4</u>, the Company ceases to, directly or indirectly, own and control 100% of each class of the outstanding Equity Interests of each Subsidiary of the Company (other than directors' qualifying shares and other nominal amounts of Equity Interests required to be held by other Persons under applicable law); or (d) the Company consolidates with, or merges with or into, another Person or sells, assigns, conveys, transfers, leases or otherwise disposes of all or substantially all of its assets to any Person, or any Person consolidates with, or merges with or into, the Company, in any such event pursuant to a transaction in which any of the outstanding voting Equity Interests of the Company is converted into or exchanged for cash, securities or other property, other than any such transaction where the voting Equity Interests of the Company outstanding immediately prior to such transaction constitute, or are converted into or exchanged for, a majority of the voting Equity Interests of the surviving or acquiring Person (or the parent of such surviving or acquiring Person) immediately after giving effect to such transaction.

"<u>Chatham Capital</u>" is defined in the introductory clause of this Agreement.

"<u>Closing Date</u>" is defined in <u>Section</u><u> </u><u>12.1</u>.

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"<u>COD Tax</u>" means any income tax paid or payable by the Company and its Subsidiaries solely as a result of any cancellation of debt income received in connection with the discharge of the Debt to be Discharged.

"<u>Code</u>" means the Internal Revenue Code of 1986, as amended.

"<u>Collateral</u>" means "Collateral" (as defined in the Guaranty and Collateral Agreement) and any and all other property now or hereafter securing Obligations; *provided*, *however* (for the avoidance of doubt) that the term "Collateral" shall exclude any Excluded Property (as such term is defined in the Guaranty and Collateral Agreement).

"<u>Collateral Access Agreement</u>" means an agreement in form and substance reasonably satisfactory to Administrative Agent pursuant to which a mortgagee or lessor of real property on which collateral or books or records are stored or otherwise located, or a warehouseman, processor, or other bailee of inventory or other property owned by any Loan Party, acknowledges the Liens of Administrative Agent, waives or subordinates any Liens held by that Person on that property, and, in the case of any such agreement with a mortgagee or lessor, permits Administrative Agent reasonable access to and use of the applicable real property following the occurrence and during the continuance of an Event of Default to assemble, complete, and sell any Collateral stored or otherwise located on that real property.

"<u>Collateral and Diligence Questionnaire</u>" means a collateral and diligence questionnaire executed and delivered to Administrative Agent by a Loan Party.

"<u>Collateral Documents</u>" means, collectively, the Guaranty and Collateral Agreement, each Mortgage (if any), each Mortgage-Related Document (if any), each Collateral Access Agreement, each Control Agreement, each Intellectual Property Security Agreement, and any other agreement or instrument pursuant to which any Borrower, any Subsidiary or any other Person grants or purports to grant collateral to Administrative Agent for the benefit of Administrative Agent and the Lenders or otherwise relates to any such collateral.

"<u>Commitment</u>" means, as to any Lender, that Lender's commitment to make Loans under this Agreement. The initial amount of each Lender's Commitment is set forth on Annex A.

"<u>Company</u>" is defined in the introductory clause of this Agreement.

"<u>Competitor</u>" means any Person that (a) is an operating company (or a direct or indirect Wholly-Owned Subsidiary or a holding company of an operating company) that is directly engaged in substantially similar business operations of the Company and its Subsidiaries or is directly competitive with the principal lines of business of the Company and its Subsidiaries as of the date of determination, and (b) has been identified by name on a list delivered by the Company to Administrative Agent on or prior to the Closing Date (as such list may be updated following the Closing Date as the Company and Administrative Agent shall mutually agree; *provided*, that any updated list shall not apply retroactively for any purpose, including to disqualify any Persons that have previously acquired an assignment or participation interest in any Loans and/or Commitments); *provided*, that "Competitor" shall not include (i) any bona fide debt fund, collateralized loan obligation, investment vehicle, or other institutional investor that is primarily engaged in the business of making, purchasing, holding, or otherwise investing in commercial loans and similar extensions of credit, even if such Person is an Affiliate of a Competitor, so long as such Person (A) operates with independent management and decision-making authority from any Competitor and (B) has in place customary information barriers with respect to the sharing of confidential borrower information with any Affiliate that is a Competitor, or (ii) any bank, insurance company, or other regulated financial institution, even if such Person has an Affiliate that would otherwise constitute a Competitor.

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"<u>Compliance Certificate</u>" means a Compliance Certificate in substantially the form of Exhibit B.

"<u>Computation Period</u>" means each period of 12 consecutive months ending on the last day of a month.

"<u>Conrent</u>" means Conrent Invest S.A., a public limited liability company (société anonyme), incorporated under the laws of the Grand Duchy of Luxembourg.

"<u>Consolidated Net Income</u>" means, with respect to the Company and its Subsidiaries for any period, the consolidated net income (or loss) of the Company and its Subsidiaries for that period, excluding (a) any gains from asset dispositions (other than the sale or lease of inventory in the ordinary course of business); (b) any extraordinary or non-recurring gains; (c) the income (or loss) of any Loan Party during that period in which any other Person has a joint interest, except to the extent of the amount of cash dividends or other distributions actually paid in cash to that Loan Party during that period; (d) the income (or loss) of any Person during that period and accrued prior to the date it becomes a Subsidiary of the Company or is merged into or consolidated with a Loan Party or that Person's assets are acquired by a Loan Party; (e) the income of any Loan Party to the extent that the declaration or payment of dividends or similar distributions by that Loan Party of that income is not at the time permitted by operation of the terms of its organizational documents, its governing documents, or any agreement, instrument, judgment, decree, order, statute, rule; or governmental regulation applicable to that Loan Party; and (f) any gains from discontinued operations or contracts; *provided*, that, for the avoidance of doubt, there shall be excluded from Consolidated Net Income, without duplication, the net income of (i) any Person that is not a Subsidiary or that is accounted for by the equity method of accounting, except to the extent of the amount of dividends or other distributions actually paid in cash to the Company or a Subsidiary by such Person during such period, (ii) any Person (other than the Company or a Subsidiary) in which any other Person (other than the Company or a Subsidiary) has an ownership interest, except to the extent of the amount of dividends or other distributions actually paid in cash to the Company or a Subsidiary by such Person during such period and (iii) any Person (other than the Company or a Subsidiary) the ability of which to make dividends or distributions to holders of its Equity Interests or to purchase or redeem its Equity Interests or to pay management fees, transaction-based fees or similar fees to its equity holders or any Affiliate thereof is, in any such case, restricted by any agreement, except to the extent of the amount of dividends or other distributions actually paid in cash to the Company or a Subsidiary by such Person during such period.

"<u>Contingent Liability</u>" means, with respect to any Person, each obligation and liability of that Person and all such obligations and liabilities of that Person incurred pursuant to any agreement, undertaking or arrangement by which that Person: (a) guarantees, endorses or otherwise becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, dividend, obligation or other liability of any other Person in any manner (other than by endorsement of instruments in the course of collection), including any indebtedness, dividend or other obligation which may be issued or incurred at some future time; (b) guarantees the payment of dividends or other distributions upon the Equity Interests of any other Person; (c) undertakes or agrees (whether contingently or otherwise): (i) to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability of any other Person or any property or assets constituting security therefor, (ii) to advance or provide funds for the payment or discharge of any indebtedness, obligation or liability of any other Person (whether in the form of loans, advances, stock purchases, capital contributions, or otherwise), or to maintain solvency, assets, level of income, working capital, or other financial condition of any other Person, or (iii) to make payment to any other Person other than for value received; (d) agrees to lease property or to purchase securities, property, or services from any other Person with the purpose or intent of assuring the owner of that indebtedness or obligation of the ability of that other Person to make payment of the indebtedness or obligation; (e) to induce the issuance of, or in connection with the issuance of, any letter of credit for the benefit of any other Person; or (f) undertakes or agrees otherwise to assure a creditor against loss. The amount of any Contingent Liability will (subject to any limitation set forth in this Agreement) be deemed to be the outstanding principal amount (or maximum permitted principal amount, if larger) of the indebtedness, obligation or other liability guaranteed or supported thereby or, if not a fixed and determined amount, the maximum reasonably anticipated liability in respect thereof as determined in good faith by the Person providing the guarantee or support.

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"<u>Control Agreement</u>" means each deposit account control agreement or securities account control agreement, as applicable, entered into by a Loan Party, each depository institution or securities intermediary party thereto and Administrative Agent in form and substance reasonably satisfactory to Administrative Agent.

"<u>Controlled Group</u>" means all members of a controlled group of corporations, all members of a controlled group of trades or businesses (whether or not incorporated) under common control and all members of an affiliated service group which, together with any Borrower or any Subsidiary of a Borrower, are treated as a single employer under Section 414 of the Code or Section 4001 of ERISA.

"<u>CRC</u>" means Carlson Ridge Capital, LLC, a Delaware limited liability company.

"<u>Credit Facilities</u>" means the credit facilities provided under this Agreement and the other Loan Documents.

"<u>Cure Notice</u>" is defined in <u>Section</u><u> </u><u>13.4.1</u>.

"<u>Debt</u>" of any Person means, without duplication, (a) all indebtedness of that Person for borrowed money; (b) all indebtedness evidenced by bonds, debentures, notes or similar instruments; (c) all obligations of that Person as lessee under Capital Leases which have been or should be recorded as liabilities on a balance sheet of that Person in accordance with GAAP; (d) all obligations of that Person to pay the deferred purchase price of property or services (excluding trade accounts payable in the ordinary course of business); (e) all indebtedness secured by a Lien on the property of that Person, whether or not that indebtedness has been assumed by that Person, but if that Person has not assumed or otherwise become liable for that indebtedness, then that indebtedness will be measured at the fair market value of the property securing that indebtedness at the time of determination; (f) all obligations, contingent or otherwise, with respect to the face amount of all letters of credit (whether or not drawn), bankers' acceptances, and similar obligations issued for the account of that Person; (g) all Hedging Obligations of that Person; (h) all Contingent Liabilities of that Person; (i) all Debt of any partnership of which that Person is a general partner; (j) all non-compete payment obligations, earn-outs, and similar obligations; (k) all monetary obligations under any receivables factoring, receivable sale, or similar transactions and all monetary obligations under any synthetic lease, tax ownership/operating lease, off-balance sheet financing, or similar financing; and (l) any Equity Interests of that Person or other equity instrument of that Person, whether or not mandatorily redeemable, that under GAAP is characterized as debt, whether pursuant to financial accounting standards board issuance No. 150 or otherwise.

"<u>Debt to be Discharged</u>" means the "TRCK Debt" (as defined in the Related Transactions LOI).

"<u>Default</u>" means any event that, if it continues uncured, will, with lapse of applicable cure or grace periods or notice or both, constitute an Event of Default.

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"<u>Defaulting Lender</u>" means any Lender that (a) has failed to fund any portion of the Loans required to be funded by it under this Agreement within one Business Day of the date required to be funded by it under this Agreement; (b) has otherwise failed to pay over to Administrative Agent or any other Lender any other amount required to be paid by it under this Agreement within one Business Day of the date when due, unless the subject of a good faith dispute; (c) has, or has a parent company that has, (i) been deemed insolvent or become the subject of an Insolvency Proceeding, or (ii) become the subject of a Bail-In Action; (d) has notified any Borrower, Administrative Agent, or any Lender that it does not intend to comply with any of its funding obligations under this Agreement or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement or under other agreements in which it commits to extend credit; or (e) has failed to confirm within three Business Days of a request by Administrative Agent that it will comply with the terms of this Agreement relating to its obligations to fund Loans.

"<u>Director and Officer Tail Policy</u>" means a directors and officers tail insurance policy to be purchased by the Company on or about the Closing Date.

"<u>Disqualified Lender</u>" means (a) any Competitor, (b) any Person that has been designated by the Company by name (and not by category) on a list delivered by the Company to Administrative Agent on or prior to the Closing Date (as such list may be updated following the Closing Date as the Company and Administrative Agent shall mutually agree; *provided*, that any updated list shall not apply retroactively for any purpose, including to disqualify any Persons that have previously acquired an assignment or participation interest in any Loans and/or Commitments), and (c) any Person that is clearly identifiable, solely on the basis of such person's name, as an Affiliate of any Person referred to in <u>clause</u><u> </u><u>(a)</u> or <u>clause</u><u> </u><u>(b)</u> above (but excluding any Person described in <u>clause (i)</u> or <u>clause (ii)</u> of the proviso to the definition of "Competitor").

"<u>Dollar</u>" and the sign "<u>$</u>" mean lawful money of the United States of America.

"<u>Domestic Foreign Holding Company</u>" means any Domestic Subsidiary of any Loan Party that (i) owns 65% or more of the Equity Interests (which represents at least 65% of the total combined voting power of all classes of Equity Interests entitled to vote) of a Foreign Subsidiary that is a "controlled foreign corporation" (as defined in Section 957(a) of the Code); (ii) holds no assets other than Equity Interests of one or more Foreign Subsidiaries that are "controlled foreign corporations" (as defined in Section 957(a) of the Code), other than immaterial cash held by that Domestic Subsidiary solely for the purpose of paying administrative or maintenance expenses of that Domestic Subsidiary; and (iii) has no purpose other than serving as a holding company for the ownership of each such Foreign Subsidiary.

"<u>Domestic Subsidiary</u>" means each Subsidiary which is a "United States person" within the meaning of Section 7701(a)(30) of the Code. For the avoidance of doubt, Track Group – Puerto Rico, Inc., a Puerto Rico corporation, shall be deemed to be a Domestic Subsidiary.

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"<u>EBITDA</u>" means, for any period, the result of the following, in each case as determined in accordance with GAAP: (a) Consolidated Net Income for that period; *plus* (b) to the extent deducted in determining that Consolidated Net Income, without duplication, the sum of the following during that period: (i) Interest Expense (net of interest income for that period of the Company and its Subsidiaries) for that period; (ii) federal, state, local and foreign income tax expense for that period; (iii) depreciation and amortization for that period; (iv) unusual or non-recurring expenses or losses, whether cash or non-cash, incurred during that period relating to restructuring charges, integration costs, severance, retention, relocation, and similar items, so long as the aggregate amount of all such expenses and losses does not exceed $1,000,000 in any Computation Period; (v) other non-cash unusual or non-cash non-recurring expenses or losses (including, without limitation, non-cash adjustments due to changes in accounting and foreign currency translation losses and adjustments) and other non-cash charges or impairments (in each case as determined in accordance with GAAP) incurred during that period; (vi) reasonable and documented out-of-pocket fees, costs, and expenses paid during that period in connection with the negotiation, execution, and delivery of this Agreement and the other Loan Documents and the consummation of the Related Transactions and the transactions contemplated by this Agreement and the other Loan Documents (including, without limitation, in connection with enacting governance enhancements and related items that will be incurred outside the ordinary course of business), so long as (A) those fees, costs, and expenses were paid not later than 180 days after the Closing Date, and (B) the aggregate amount of all such fees, costs, and expenses, whenever incurred or paid, does not exceed $8,763,000; (vii) solely for purposes of determining compliance with the covenants in <u>Section</u><u> </u><u>11.12</u>, the amount of any Financial Covenant Cure Amount made during such period; (viii) expenses, costs, and fees incurred in connection with any Permitted Acquisition, whether or not consummated, so long as, in the case of unconsummated Permitted Acquisitions, the aggregate amount of all such expenses, costs, and fees does not exceed $750,000 in any Computation Period; (ix) transaction-related fees, costs, and expenses (including all fees, costs, and expenses paid to the Administrative Agent and Lenders) incurred in connection with the negotiation, documentation, and closing of amendments or modifications to, or waivers or consents under, this Agreement and the other Loan Documents; (x) expenses, costs, and fees incurred in connection with the purchase of the Director and Officer Tail Policy, so long as (A) those expenses, costs, and fees are incurred on or prior to the one-year anniversary of the Closing Date and (B) the aggregate amount of all such expenses, costs and fees does not exceed $500,000 in any Computation Period; and (xi) any other items approved by the Administrative Agent in its sole discretion; *minus* (c) to the extent included in determining Consolidated Net Income, without duplication, non-cash gains or profits during that period.

Notwithstanding the foregoing, for purposes of this Agreement and any other Loan Document, EBITDA of the Company and its Subsidiaries for each pre-closing period listed below shall be deemed to equal the amount listed opposite such period:

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| | |
|:---|:---|
| **Month Ending** | **Amount** |
| March 31, 2025 | $581737 |
| April 30, 2025 | $470763 |
| May 31, 2025 | $428528 |
| June 30, 2025 | $845216 |
| July 31, 2025 | $100121 |
| August 31, 2025 | $619291 |
| September 30, 2025 | $804912 |
| October 31, 2025 | $362716 |
| November 30, 2025 | $424774 |
| December 31, 2025 | $431663 |
| January 31, 2026 | $514530 |
| February 28, 2026 | $430720 |

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"<u>ECF Percentage</u>" means, with respect to the Excess Cash Flow for any ECF Period, 50%; *provided*, that the Borrowers may, with respect to the Excess Cash Flow for any ECF Period, upon at least three Business Days' prior written notice and subject to the consent of Administrative Agent and the Required Lenders (which may not be unreasonably withheld or delayed), elect to increase the ECF Percentage to up to 70%.

"<u>ECF Period</u>" means (a) the fiscal period beginning on the Closing Date and ending on September 30, 2026; and (b) each Fiscal Year thereafter.

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"<u>EEA</u><u> </u><u>Financial Institution</u>" means (a) any credit institution or investment firm established in any EEA Member Country which is subject to the supervision of an EEA Resolution Authority; (b) any entity established in an EEA Member Country which is a parent of an institution described in clause (a) of this definition; or (c) any financial institution established in an EEA Member Country which is a subsidiary of an institution described in clauses (a) or (b) of this definition and is subject to consolidated supervision with its parent;

"<u>EEA</u><u> </u><u>Member Country</u>" means any of the member states of the European Union, Iceland, Liechtenstein, and Norway.

"<u>EEA</u><u> </u><u>Resolution Authority</u>" means any public administrative authority or any person entrusted with public administrative authority of any EEA Member Country (including any delegee) having responsibility for the resolution of any EEA Financial Institution.

"<u>Environmental Agreement</u>" means each agreement of the Loan Parties with respect to any real estate subject to a Mortgage, pursuant to which Loan Parties agree to indemnify and hold harmless Administrative Agent and Lenders from liability under any Environmental Laws.

"<u>Environmental Claims</u>" means all written claims asserted by any governmental, regulatory or judicial authority or other Person alleging potential liability or responsibility for violation of any applicable Environmental Law, or for release of Hazardous Substances or injury to the environment from a release of Hazardous Substances or from any other violation of applicable Environmental Law.

"<u>Environmental Laws</u>" means all present or future applicable federal, state or local laws, statutes, common law duties, rules, regulations, ordinances and codes, together with all applicable administrative or judicial orders, consent agreements, licenses, authorizations and permits of or with any governmental authority, in each case relating to any matter arising out of or relating to worker health and safety (as it relates to exposure to Hazardous Substances), or pollution or protection of the environment, including any of the foregoing relating to the presence, use, production, generation, handling, transport, treatment, storage, disposal, distribution, discharge, emission, release, threatened release, control or cleanup of any Hazardous Substance.

"<u>Equity Cure Right</u>" is defined in <u>Section</u><u> </u><u>13.4</u>.

"<u>Equity Cure Securities</u>" is defined in <u>Section</u><u> </u><u>13.4.2</u>.

"<u>Equity Interests</u>" means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting or non-voting) of that Person's equity capital, whether now outstanding or issued or acquired after the Closing Date, including common shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests in a partnership, interests in a trust, interests in other unincorporated organizations, or any other equivalent of any such ownership interest.

"<u>ERISA</u>" means the Employee Retirement Income Security Act of 1974, as amended.

"<u>Erroneous Payment</u>" is defined in <u>Section</u><u> </u><u>15.23</u>.

"<u>Erroneous Payment Deficiency Assignment</u>" is defined in <u>Section</u><u> </u><u>15.23</u>.

"<u>Erroneous Payment Impacted Loans</u>" is defined in <u>Section</u><u> </u><u>15.23</u>.

"<u>Erroneous Payment Return Deficiency</u>" is defined in <u>Section</u><u> </u><u>15.23</u>.

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"<u>EU</u><u> </u><u>Bail-In Legislation Schedule</u>" means the EU Bail-In Legislation Schedule published by the Loan Market Association (or any successor person), as in effect from time to time.

"<u>Event of Default</u>" means any of the events described in <u>Section</u><u> </u><u>13.1</u>.

"<u>Excess Cash Flow</u>" means, for any period, the remainder of (a) EBITDA for that period, *minus* (b) the sum, without duplication, of (i) scheduled repayments of principal of the Term Loans and other Funded Debt (other than payments of revolving Debt that do not include a dollar-for-dollar commitment reduction) permitted under this Agreement and made during that period, *plus* (ii) voluntary prepayments of the Term Loans pursuant to <u>Section</u><u> </u><u>6.2.1</u>, *plus* (iii) cash payments permitted under this Agreement and made during that period with respect to unfinanced Capital Expenditures, *plus* (iv) all income taxes paid in cash by the Loan Parties during that period (without duplication) net of refunds actually received in cash during that period by the Loan Parties, *plus* (v) cash Interest Expense (net of interest income) of the Loan Parties during that period, *plus* (vi) all other items paid in cash that are added back to EBITDA during that period.

"<u>Excluded Business Interruption Proceeds</u>" means Business Interruption Proceeds not in excess of $250,000 in any Fiscal Year.

"<u>Excluded Deposit Accounts</u>" means (i) deposit accounts the balance of which consists exclusively of (A) withheld income taxes and federal, state or local employment taxes required to be paid to the Internal Revenue Service or state or local government agencies with respect to employees of any of the Loan Parties and their Subsidiaries and (B) amounts required to be paid over to an employee benefit plan pursuant to DOL Reg. Sec. 2510.3 102 on behalf of or for the benefit of employees of any of the Loan Parties and their Subsidiaries; (ii) all segregated deposit accounts constituting (and the balance of which consists solely of funds set aside in connection with) payroll accounts, trust accounts, and accounts dedicated to the payment of accrued employee benefits, medical, dental and employee benefits claims to employees of any of the Loan Parties and their Subsidiaries; (iii) zero-balance accounts; and (iv) any deposit accounts with deposits at any time in an aggregate amount not in excess of $50,000 for any one account and $250,000 in the aggregate for all such accounts.

"<u>Excluded Taxes</u>" means, with respect to any payment made to Administrative Agent, any Lender, or any other Person pursuant to the terms of this Agreement, the following: (a) Taxes based upon, or measured by, the recipient's overall net income, overall net receipts, or overall net profits (including franchise Taxes imposed in lieu of any such Taxes and branch profits Taxes) that are Other Connection Taxes or that are imposed (i) in a jurisdiction in which the relevant recipient is organized, (ii) in a jurisdiction which the relevant recipient's principal office is located, or (iii) in a jurisdiction in which the relevant recipient's lending office (or branch) in respect of which payments under this Agreement are made is located; (b) in the case of a Lender, U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in the Loan or Commitment (other than pursuant to an assignment request by the Borrower under <u>Section 8.5(b)</u>) or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to <u>Section 7.6</u>, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office; and (c) any United States federal withholding Taxes imposed under FATCA.

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"<u>Extraordinary Receipts</u>" means any cash received by or paid to or for the account of any Loan Party not in the ordinary course of business consisting of (a) pension plan reversions, (b) proceeds of insurance, (c) judgments, proceeds of settlements or other consideration of any kind in connection with any cause of action (other than with respect to reimbursement of third party claims), (d) condemnation awards (and payments in lieu thereof), (e) indemnity payments (other than to the extent such indemnity payments are (i) immediately payable to a Person that is not an Affiliate of any Loan Party, or (ii) received by any Loan Party as reimbursement for any payment previously made to such Person), (f) any purchase price adjustment received in connection with any purchase (other than a working capital adjustment), and (g) foreign, United States, state or local tax refunds in an amount, individually or in the aggregate (in any Fiscal Year), in excess of $50,000.

"<u>FATCA</u>" means Sections 1471 through 1474 of the Code, as of the date of the Agreement (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), and any current or future regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement, treaty or convention among governmental authorities and implementing such Sections of the Code.

"<u>Federal Funds Rate</u>" means, for any day, a fluctuating interest rate equal for each day during the applicable period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for that day (or, if that day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if that rate is not so published for any day which is a Business Day, the average of the quotations for that day on those transactions received by Administrative Agent from three Federal funds brokers of recognized standing selected by Administrative Agent. Administrative Agent's determination of the Federal Funds Rate will be binding and conclusive absent manifest error.

"<u>Financial Covenant Cure Amount</u>" is defined in <u>Section</u><u> </u><u>13.4.2</u>.

"<u>Financial Covenant Default</u>" is defined in <u>Section</u><u> </u><u>13.4</u>.

"<u>Financial Statements</u>" means, collectively, (a) the audited balance sheet of the Company and its Subsidiaries for the Fiscal Year ended September 30, 2025, and the related statements of operations, shareholders' equity and cash flows for the Fiscal Year then ended, and (b) the unaudited balance sheet of the Company and its Subsidiaries for the month ended February 28, 2026, and the related statements of operations, shareholders' equity and cash flows for the fiscal period then ended.

"<u>Fiscal Quarter</u>" means a fiscal quarter of a Fiscal Year, which period is the 3-month period ending on the last day of each of December, March, June, and September.

"<u>Fiscal Year</u>" means the fiscal year of the Company and its Subsidiaries, which period will be the 12-month period ending on the last day of September of each year.

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"<u>Fixed Charge Coverage Ratio</u>" means, for any Computation Period, the ratio of (a) the total for that Computation Period of (i) EBITDA, *minus* (ii) the sum of (A) income taxes paid or payable in cash by the Company and its Subsidiaries (without duplication) (other than any COD Tax) and (B) all unfinanced Capital Expenditures, to (b) the sum for that Computation Period of (i) cash Interest Expense, *plus* (ii) scheduled required payments of principal of Debt (including the Term Loans but excluding the Revolving Loans so long as the Revolving Commitments have not been terminated or reduced in connection therewith), *plus* (iii) Restricted Payments actually made in cash during that Computation Period (other than (A) Restricted Payments made pursuant to <u>clause</u><u> </u><u>(i)</u>, <u>(ii)</u>, or <u>(iii)</u> of <u>Section</u><u> </u><u>11.3</u> and (B) Restricted Payments made pursuant to <u>clause</u><u> </u><u>(vi)</u> of <u>Section</u><u> </u><u>11.3</u> to the extent such payments have been deducted as an expense in the determination of EBITDA for such Computation Period); *provided* that (x) for any Computation Period ending before the first anniversary of the Closing Date, the amount of each component of subclause (ii)(B) of clause (a) and subclauses (i) and (ii) of clause (b) as of the applicable date of determination will be determined on an annualized basis by multiplying the actual amount of that component for the period from (not including) the Closing Date to (and including) that date of determination by 365 and dividing by the number of days from (not including) the Closing Date to (and including) that date of determination, and (y) to the extent Liquidity is less than $3,000,000 after giving effect to the payment of any COD Tax, the Loan Parties shall have received cash proceeds from the issuance of common or preferred Equity Interests of the Company (or cash capital contributions to the Company) in an amount sufficient to cause the Loan Parties to have Liquidity of at least $3,000,000 (after giving effect to such issuance or contribution and the payment of such COD Tax) within twenty (20) Business Days after the payment of such COD Tax. For the avoidance of doubt, no payments made by any Loan Party to purchase the Director and Officer Tail Policy shall be included in clause (b) of the first sentence of this definition for purposes of determining the Fixed Charge Coverage Ratio so long as the aggregate amount of all such payments does not exceed $500,000.

"<u>Foreign Subsidiary</u>" means each Subsidiary (i) organized under the laws of a jurisdiction other than the United States of America or any state thereof or District of Columbia; and (ii) that is not a "United States person" within the meaning of Section 7701(a)(30) of the Code.

"<u>FRB</u>" means the Board of Governors of the Federal Reserve System or any successor thereto.

"<u>Funded Debt</u>" means, as to any Person, all Debt of that Person that matures more than one year from the date of its creation (or is renewable or extendible, at the option of that Person, to a date more than one year from that date).

"<u>GAAP</u>" means generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the U.S. accounting profession) and the Securities and Exchange Commission, which are applicable to the circumstances as of the date of determination.

"<u>Guarantor</u>" means each Person that guarantees the Obligations of the Borrowers.

"<u>Guaranty</u>" means each guaranty executed and delivered by any Guarantor, together with any joinders thereto and any other guaranty agreement executed by a Guarantor, in each case in form and substance reasonably satisfactory to Administrative Agent. The Guaranty and Collateral Agreement is a Guaranty.

"<u>Guaranty and Collateral Agreement</u>" means the Guaranty and Collateral Agreement dated as of the date of this Agreement executed and delivered by each Loan Party, together with any joinders thereto and any other guaranty and collateral agreement executed by a Loan Party, in each case in form and substance reasonably satisfactory to Administrative Agent.

"<u>Hazardous Substances</u>" means any toxic or hazardous substances, pollutants, contaminants, or wastes, including, without limitation, those that are defined as or included in the definition of "hazardous substances," "hazardous wastes," "hazardous materials," "extremely hazardous wastes," "restricted hazardous wastes," "toxic substances," "toxic pollutants," or other words of similar import, under any Environmental Law, and including any petroleum or petroleum products, radioactive materials, asbestos in any form, lead based paint, mold, mildew, radon gas, per- and polyfluoroalkyl substances, and polychlorinated biphenyls.

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"<u>Hedging Agreement</u>" means any interest rate, currency or commodity swap agreement, cap agreement, collar agreement, spot foreign exchange, forward foreign exchange, foreign exchange option (or series of options) and any other agreement or arrangement designed to protect a Person against fluctuations in interest rates, currency exchange rates or commodity prices.

"<u>Hedging Obligation</u>" means, with respect to any Person, any liability of that Person under any Hedging Agreement determined (a) for any date on or after the date that Hedging Agreement has been closed out and termination value determined in accordance therewith, using that termination value; and (b) for any date prior to the date referenced in clause (a), using the amount determined as the mark-to-market value for that Hedging Agreement, as determined based upon one or more mid-market or other readily available quotations provided by any recognized dealer in that Hedging Agreement (which may include a Lender or any Affiliate of a Lender).

"<u>Indemnified Liabilities</u>" is defined in <u>Section</u><u> </u><u>15.17</u>.

"<u>Indemnified Taxes</u>" means (a) all Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrowers under any Loan Document and (b) to the extent not otherwise described in <u>clause</u><u> </u><u>(a)</u> above, Other Taxes.

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

"<u>Intellectual Property Security Agreement</u>" is used as defined in the Guaranty and Collateral Agreement.

"<u>Interest Expense</u>" means, for any period, the consolidated interest expense of the Company and its Subsidiaries for that period (including all imputed interest on Capital Leases).

"<u>Interest Line Loan</u>" is defined in <u>Section</u><u> </u><u>2.1.2(b)</u>.

"<u>Interest Line Loan Availability Period</u>" means the period (i) beginning on and including the day after the Closing Date and (ii) ending on and including the earlier of (A) the date on which the Commitments of the Lenders to make Interest Line Loans terminate pursuant to <u>Section</u><u> </u><u>6.1</u> or <u>Section</u><u> </u><u>13</u> and (B) April 30, 2027.

"<u>Interest Line Loan Commitment</u>" means, as to any Lender, that Lender's commitment to make Interest Line Loans under this Agreement. The amount of each Lender's Interest Line Loan Commitment is set forth on Annex A. The initial aggregate amount of the Interest Line Loan Commitments of all Lenders is $1,000,000.

"<u>Investment</u>" means, with respect to any Person, any investment in another Person, whether by acquisition of any debt or Equity Interest, by making any loan or advance, by becoming obligated with respect to a Contingent Liability in respect of obligations of that other Person (other than travel and similar advances to employees in the ordinary course of business) or by making an Acquisition.

"<u>ITA</u>" means the *Income Tax Act* (Canada) and the regulations promulgated thereunder, in each case as amended from time to time.

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"<u>JCP</u>" means JCP Investment Management, LLC, a Texas limited liability company.

"<u>Joint Liability Payment</u>" is defined in <u>Section</u><u> </u><u>16.7</u>.

"<u>Lender</u>" is defined in the introductory clause of this Agreement.

"<u>Lender Party</u>" is defined in <u>Section</u><u> </u><u>15.17</u>.

"<u>Lien</u>" means, with respect to any Person, any interest granted by that Person in any real or personal property, asset, or other right owned or being purchased or acquired by that Person (including an interest in respect of a Capital Lease) that secures payment or performance of any obligation and includes any mortgage, lien, encumbrance, title retention lien, charge, or other security interest of any kind, whether arising by contract, as a matter of law, by judicial process, or otherwise.

"<u>Liquidity</u>" means, as of any date of determination, the dollar amount of unrestricted and unencumbered (other than the Liens of Administrative Agent and any customary liens of depositary banks) cash and Cash Equivalent Investments maintained by the Loan Parties in one or more deposit accounts (other than Excluded Deposit Accounts) located in the United States and subject to a Control Agreement.

"<u>Loan Account</u>" means an account maintained under this Agreement by Administrative Agent on its books of account, and with respect to Borrowers, in which Borrowers will be charged with all Loans made to, and all other Obligations incurred by, any of the Borrowers.

"<u>Loan Documents</u>" means this Agreement, the Notes, the Agent Fee Letter, the Warrant, each Collateral and Diligence Questionnaire, the Collateral Documents, and all documents, instruments, and agreements delivered in connection with the foregoing, as any of the foregoing are amended or modified in accordance with their respective terms.

"<u>Loan Party</u>" means each Borrower and each Guarantor.

"<u>Loan</u>" or "<u>Loans</u>" means, as the context may require, any of the Revolving Loans and any of the Term Loans.

"<u>Margin Stock</u>" means any "margin stock" as defined in Regulation U.

"<u>Material Adverse Effect</u>" means (a) a material adverse change in, or a material adverse effect upon, the financial condition, operations, assets, business, or properties of any Loan Party, (b) a material impairment of the ability of the Loan Parties, taken as a whole, to perform the Obligations under any Loan Document, (c) a material adverse effect upon any substantial portion of the Collateral under the Collateral Documents or upon the legality, validity, binding effect or enforceability against any Loan Party of any Loan Document, (d) a material impairment of the ability of Administrative Agent to enforce or collect any Obligations, or (e) an impairment of the ability of Administrative Agent to realize upon any material portion of the Collateral.

"<u>Material Contract</u>" means, with respect to any Person, (a) the Related Agreements; (b) each contract or agreement to which that Person or any of its Subsidiaries is a party involving aggregate consideration payable to or by that Person or that Subsidiary of $500,000 or more in any Fiscal Year; and (c) all other contracts or agreements as to which the breach, nonperformance, cancellation, or failure to renew by any party could reasonably be expected to have a Material Adverse Effect.

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"<u>Material Operational Assets</u>" means, collectively, assets that are material to the business or operations of the Company and its Subsidiaries, including, without limitation, (i) all material licenses, patents, patent applications, trademark and service mark registrations, trademark and service mark applications, trade names, copyright registrations, copyright applications, and other intellectual property rights used in and that are material to or are necessary for the operation of such business, and (ii) all Material Contracts.

"<u>Mortgage</u>" means a mortgage, deed of trust, or similar instrument granting Administrative Agent a Lien on real property owned by any Loan Party.

"<u>Mortgage-Related Documents</u>" means with respect to any real property subject to a Mortgage, the following, in form and substance reasonably satisfactory to Administrative Agent: (a) a mortgagee title policy (or binder therefor) covering Administrative Agent's interest under the Mortgage, in a form and amount and by an insurer reasonably acceptable to Administrative Agent, which must be fully paid on that effective date; (b) all assignments of leases, estoppel letters, attornment agreements, consents, waivers, and releases as Administrative Agent reasonably requires with respect to other Persons having an interest in the real estate and as may be obtained after the exercise of commercially reasonable efforts by the applicable Loan Party; (c) an as-built survey of the real estate certified by a licensed surveyor reasonably acceptable to Administrative Agent; (d) a life-of-loan flood hazard determination and, if the real estate is located in a flood plain, an acknowledged notice to borrower and flood insurance in an amount, with endorsements and by an insurer reasonably acceptable to Administrative Agent; (e) a current appraisal of the real estate, prepared by an appraiser reasonably acceptable to Administrative Agent, and in form and substance reasonably satisfactory to Administrative Agent and the Required Lenders; (f) an environmental assessment report, prepared by environmental engineers reasonably acceptable to Administrative Agent, and accompanied by all certificates, as Administrative Agent reasonably requires, which must all be in form and substance reasonably satisfactory to Administrative Agent and the Required Lenders; and (g) an Environmental Agreement and all other documents, instruments, or agreements as Administrative Agent reasonably requires with respect to any environmental risks regarding the real estate.

"<u>Multiemployer Pension Plan</u>" means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA and that is subject to Title IV of ERISA and to which any Borrower or any other member of the Controlled Group has or is reasonably likely to have any liability.

"<u>Net Cash Proceeds</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to any asset disposition, the aggregate cash proceeds (including cash proceeds received pursuant to policies of insurance (other than Excluded Business Interruption Proceeds) or by way of deferred payment of principal pursuant to a note, installment receivable or otherwise, but only as and when received) received by any Loan Party pursuant to that asset disposition net of (i) the direct costs relating to that sale, transfer or other disposition (including sales commissions and legal, accounting and investment banking fees); (ii) taxes paid or reasonably estimated by Borrowers to be payable as a result thereof (after taking into account any available tax credits or deductions and any tax sharing arrangements); and (iii) amounts required to be applied to the repayment of any Debt secured by a Lien on the asset subject to that asset disposition (other than the Loans);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to any issuance of Equity Interests, the aggregate cash proceeds received by any Loan Party pursuant to that issuance, net of the direct costs relating to that issuance (including sales and underwriters' commissions); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to any issuance of Debt, the aggregate cash proceeds received by any Loan Party pursuant to that issuance, net of the direct costs of that issuance (including up-front, underwriters' and placement fees).

"<u>Non-Consenting Lender</u>" is defined in <u>Section</u><u> </u><u>15.1(j)</u>.

"<u>Non-U.S. Lender</u>" is defined in <u>Section 7.6.4.</u>

"<u>Note</u>" means a promissory note substantially in the form of <u>Exhibit</u><u> </u><u>A</u>.

"<u>Notice of Borrowing</u>" is defined in <u>Section</u><u> </u><u>2.2.2(a)</u>.

"<u>Obligations</u>" means all obligations (monetary (including post-petition interest, allowed or not) or otherwise) of any Loan Party under this Agreement and any other Loan Document, including all out-of-pocket fees and charges of any counsel and/or other advisors to any Lender Party and all court costs and similar legal expenses that are payable by the Loan Parties in accordance with the Loan Documents, all in each case howsoever created, arising or evidenced, whether direct or indirect, absolute or contingent, now or hereafter existing, or due or to become due.

"<u>OFAC</u>" is defined in <u>Section 9.30</u>.

"<u>Operating Lease</u>" means any lease of (or other agreement conveying the right to use) any real or personal property by any Loan Party, as lessee, other than any Capital Lease.

"<u>Other Connection Taxes</u>" means, with respect to Administrative Agent, any Lender or any other recipient of payments pursuant to any Loan Document, Taxes imposed as a result of a present or former connection between such recipient and the jurisdiction imposing such Tax (other than connections arising from such recipient having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Loan or Loan Document).

"<u>Other Taxes</u>" means any and all present or future stamp or documentary taxes, recording, filing or similar taxes, or any other excise or property taxes, charges or similar levies arising from any payment made under this Agreement or from the execution, delivery, performance, or enforcement of, or otherwise with respect to, this Agreement and the other Loan Documents, but excluding Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to <u>Section</u><u> </u><u>8.5(b)</u>).

"<u>Participant</u>" is defined in <u>Section</u><u> </u><u>15.6.2</u>.

"<u>Patriot Act</u>" is defined in <u>Section</u><u> </u><u>15.16</u>.

"<u>Payment in Full</u>" means (a) the payment in full in cash of all Loans and other Obligations, other than contingent indemnification obligations for which no claims have been asserted; (b) the termination of all Commitments; and (c) the release of any claims of the Loan Parties against Administrative Agent and Lenders arising on or before the payment date.

"<u>Payment Recipient</u>" is defined in <u>Section</u><u> </u><u>15.23</u>.

"<u>PBGC</u>" means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

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"<u>Pension Plan</u>" means a "pension plan," as that term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA or the minimum funding standards of ERISA (other than a Multiemployer Pension Plan), and as to which any Borrower or any Subsidiary (including any contingent liability of any member of Borrowers' Controlled Group) may have any liability, including any liability by reason of having been a substantial employer within the meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be a contributing sponsor under Section 4069 of ERISA.

"<u>Permitted Acquisition</u>" means any Acquisition by any Loan Party where Administrative Agent has provided its prior written consent in its commercially reasonable discretion.

"<u>Permitted Lien</u>" means a Lien expressly permitted under this Agreement pursuant to <u>Section</u><u> </u><u>11.2</u>.

"<u>Person</u>" means any natural person, corporation, partnership, trust, limited liability company, association, governmental authority or unit, or any other entity, whether acting in an individual, fiduciary or other capacity.

"<u>Prepayment Fee</u>" is defined in the Agent Fee Letter.

"<u>Prime Rate</u>" means, for any day, the rate of interest in effect for that day equal to the prime rate in the United States as reported from time to time in *The Wall Street Journal* (or other authoritative source selected by Administrative Agent in its sole discretion), or as Prime Rate is otherwise determined by Administrative Agent in its sole discretion. Administrative Agent's determination of the Prime Rate will be conclusive, absent manifest error. Any change in the Prime Rate will take effect at the opening of business on the day of that change. In the event *The Wall Street Journal* (or any other authoritative source) publishes a range of "prime rates," the Prime Rate will be the highest of the "prime rates."

"<u>Proceeding</u>" means any investigation, inquiry, litigation, review, hearing, suit, claim, audit, arbitration, proceeding or action (in each case, whether civil, criminal, administrative, investigative or informal) commenced, brought, conducted or heard by or before, or otherwise involving, any governmental authority or arbitrator.

"<u>Pro Rata Share</u>" means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) with respect to a Lender's obligation to make Revolving Loans, and receive payments of principal, interest, fees, costs, and expenses with respect thereto, (i) prior to the Revolving Commitments being terminated or reduced to zero, the percentage obtained by dividing (A) that Lender's Revolving Commitment, by (B) the aggregate Revolving Commitments of all Lenders; and (ii) from and after the time the Revolving Commitments have been terminated or reduced to zero, the percentage obtained by dividing (A) the aggregate unpaid principal amount of that Lender's Revolving Outstandings by (B) the aggregate unpaid principal amount of all Revolving Outstandings;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) with respect to a Lender's obligation to make a Term A Loan and receive payments of interest, fees, and principal with respect thereto, (i) prior to the Term A Loan Commitment being terminated or reduced to zero, the percentage obtained by dividing (A) that Lender's Term A Loan Commitment *plus* the unpaid principal amount of that Lender's Term A Loans, by (B) the aggregate Term A Loan Commitment of all Lenders *plus* the unpaid principal amount of all Term A Loans of all Lenders; and (ii) from and after the time the Term A Loan Commitment has been terminated or reduced to zero, the percentage obtained by dividing (A) the aggregate unpaid principal amount of that Lender's Term A Loans by (B) the aggregate unpaid principal amount of all Term A Loans;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) with respect to a Lender's obligation to make Interest Line Loans and receive payments of interest, fees, and principal with respect thereto, (i) prior to the Interest Line Loan Commitment being terminated or reduced to zero, the percentage obtained by dividing (A) that Lender's Interest Line Loan Commitment *plus* the unpaid principal amount of that Lender's Interest Line Loans, by (B) the aggregate Interest Line Loan Commitment of all Lenders *plus* the unpaid principal amount of all Interest Line Loans of all Lenders; and (ii) from and after the time the Interest Line Loan Commitment has been terminated or reduced to zero, the percentage obtained by dividing (A) the aggregate unpaid principal amount of that Lender's Interest Line Loans by (B) the aggregate unpaid principal amount of all Interest Line Loans; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) with respect to all other matters as to a particular Lender, (i) prior to the time that the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (A) that Lender's Revolving Commitment *plus* that Lender's Term A Loan Commitment *plus* the aggregate unpaid principal amount of that Lender's Term A Loans *plus* that Lender's Interest Line Loan Commitment *plus* the aggregate unpaid principal amount of that Lender's Interest Line Loans, by (B) the aggregate Revolving Commitments of all Lenders *plus* the Term A Loan Commitment of all Lenders *plus* the aggregate unpaid principal amount all Term A Loans of all Lenders *plus* the aggregate Interest Line Loan Commitment of all Lenders *plus* the aggregate unpaid principal amount all Interest Line Loans of all Lenders; and (ii) if the Commitments have been terminated or reduced to zero, the percentage obtained by dividing (A) the aggregate unpaid principal amount of that Lender's Revolving Outstandings *plus* the aggregate unpaid principal amount of that Lender's Term A Loans *plus* the aggregate unpaid principal amount of that Lender's Interest Line Loans by (B) the aggregate unpaid principal amount of all Revolving Outstandings *plus* the aggregate unpaid principal amount of all Term A Loans of all Lenders *plus* the aggregate unpaid principal amount of all Interest Line Loans of all Lenders.

"<u>Protective Advances</u>" is defined in <u>Section</u><u> </u><u>14.15</u>.

"<u>Regulation D</u>" means Regulation D of the FRB.

"<u>Regulation U</u>" means Regulation U of the FRB.

"<u>Related Agreements</u>" means the Related Transactions LOI and all agreements, instruments, and documents (including that certain Confidentiality and Non-Circumvention Agreement dated as of September 9, 2025, among CRC, JCP, the Company, ADSS, and Conrent, but excluding this Agreement and the other Loan Documents) executed or delivered in connection with the Related Transactions LOI and the Related Transactions, in each case, as in effect on the Closing Date.

"<u>Related Transactions</u>" means, collectively, the "Transactions" (as defined in the Related Transactions LOI), including, without limitation, (a) the transactions contemplated by the Share Purchase Agreement (as defined in the Related Transactions LOI), (b) the transactions contemplated by the Conrent Debt Discharge Documentation (as defined in the Related Transactions LOI), and (c) the transactions contemplated by Section 4 of the Related Transactions LOI, but excluding the transactions contemplated by this Agreement and the other Loan Documents.

"<u>Related Transactions LOI</u>" means that certain letter agreement dated August 27, 2025, among CRC, JCP, ADSS, the Company, and ETS Limited, an exempted limited company incorporated under the laws of the Cayman Islands.

"<u>Reportable Event</u>" means a reportable event as defined in Section 4043 of ERISA and the regulations issued thereunder as to which the PBGC has not waived the notification requirement of Section 4043(a), or the failure of a Pension Plan to meet the minimum funding standards of Section 412 of the Code (without regard to whether the Pension Plan is a plan described in Section 4021(a)(2) of ERISA) or under Section 302 of ERISA.

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"<u>Required Contribution Date</u>" is defined in <u>Section</u><u> </u><u>13.4.2</u>.

"<u>Required Lenders</u>" means, at any time, Lenders whose Pro Rata Shares exceed 50% as determined pursuant to <u>clause</u><u> </u><u>(d)</u> of the definition of "Pro Rata Share"; *provided*, that (i) the Pro Rata Shares held or deemed held by, any Defaulting Lender will be excluded for purposes of making a determination of Required Lenders, and (ii) at all times there are two or fewer Lenders that are not Affiliates of each other, Required Lenders will require all such Lenders that are (A) not Affiliates of each other and (B) not Defaulting Lenders.

"<u>Restricted Payment</u>" is defined in <u>Section</u><u> </u><u>11.3</u>.

"<u>Revolver Unused Fee Rate</u>" means 1.00% per annum.

"<u>Revolving Loan Availability</u>" means at any time, an amount equal to (a) the aggregate Revolving Commitments of all Lenders *minus* (b) the Revolving Outstandings.

"<u>Revolving Commitment</u>" means, as to any Lender, such Lender's commitment to make Revolving Loans under this Agreement. The initial amount of each Lender's Revolving Commitment is set forth on Annex A. The initial aggregate amount of the Revolving Commitments of all Lenders is $2,000,000.

"<u>Revolving Loan</u>" is defined in <u>Section</u><u> </u><u>2.1.1</u>.

"<u>Revolving Outstandings</u>" means, at any time, the aggregate principal amount of all outstanding Revolving Loans.

"<u>SEC</u>" means the Securities and Exchange Commission or any other governmental authority succeeding to any of the principal functions thereof.

"<u>Senior Officer</u>" means, with respect to any Loan Party, any of the president, chief executive officer, the chief financial officer, or the treasurer (or other officer with similar responsibilities) of that Loan Party.

"<u>Subsidiary</u>" means, with respect to any Person, a corporation, partnership, limited liability company, or other entity of which that Person owns, directly or indirectly, outstanding Equity Interests having more than 50% of the ordinary voting power for the election of directors or other managers of that corporation, partnership, limited liability company, or other entity. Unless the context otherwise requires, each reference to Subsidiaries in this Agreement refers to Subsidiaries of the Company.

"<u>Taxes</u>" means any and all present and future taxes, duties, levies, imposts, deductions, assessments, charges, similar fees or withholdings imposed under applicable law and/or by any governmental authority that are in the nature of a tax (including backup withholding), and any and all liabilities (including interest and penalties and other additions to taxes) with respect to any of the foregoing.

"<u>Term</u><u> </u><u>A Loan</u>" is defined in <u>Section</u><u> </u><u>2.1.2(a)</u>.

"<u>Term</u><u> </u><u>A Loan Commitment</u>" means, as to any Lender, that Lender's commitment to make Term A Loans under this Agreement. The amount of each Lender's Term A Loan Commitment is set forth on Annex A. The initial aggregate amount of the Term A Loan Commitments of all Lenders is $21,000,000.

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"<u>Term Loan</u>" means, as the context may require, any Term A Loans and/or any Interest Line Loans.

"<u>Termination Date</u>" means the earlier to occur of (a) April 30, 2031, or (b) any other date on which the Commitments terminate pursuant to <u>Section</u><u> </u><u>6.1</u> or <u>Section</u><u> </u><u>13</u>.

"<u>Termination Event</u>" means, with respect to a Pension Plan, the following: (a) a Reportable Event; (b) the withdrawal of any Borrower or any other member of the Controlled Group from that Pension Plan during a plan year in which that Borrower or other member of the Controlled Group was a "substantial employer" as defined in Section 4001(a)(2) of ERISA or was deemed such under Section 4068(f) of ERISA; (c) the termination of that Pension Plan, the filing of a notice of intent to terminate the Pension Plan or the treatment of an amendment of that Pension Plan as a termination under Section 4041 of ERISA; (d) the institution by the PBGC of proceedings to terminate that Pension Plan; or (e) any event or condition that might reasonably constitute grounds under Section 4042 of ERISA for the termination of, or appointment of a trustee to administer, that Pension Plan.

"<u>Testing Dates</u>" is defined in <u>Section</u><u> </u><u>13.4.1</u>.

"<u>TGAL</u>" means Track Group Analytics Limited, a Canada corporation.

"<u>Total Debt</u>" means all Debt of the Company and its Subsidiaries, determined on a consolidated basis, excluding (a) contingent obligations in respect of Contingent Liabilities (except to the extent constituting (i) Contingent Liabilities in respect of Debt of a Person other than any Loan Party, or (ii) Contingent Liabilities in respect of undrawn letters of credit), (b) Hedging Obligations, and (c) Debt of any Borrower to any other Loan Party and Debt of any Subsidiary to any Borrower or to any other Subsidiary.

"<u>Total Debt to EBITDA Ratio</u>" means, as of the last day of any month, the ratio of (a) Total Debt as of that day to (b) EBITDA for the Computation Period ending on that day.

"<u>Total Plan Liability</u>" means, at any time, the present value of all vested and unvested accrued benefits under all Pension Plans, determined as of the then most recent valuation date for each Pension Plan, using PBGC actuarial assumptions for single employer plan terminations.

"<u>UCC</u>" means the Uniform Commercial Code as in effect from time to time in the State of New York.

"<u>Unfunded Liability</u>" means the amount (if any) by which the present value of all vested and unvested accrued benefits under all Pension Plans exceeds the fair market value of all assets allocable to those benefits, all determined as of the then most recent valuation date for each Pension Plan, using PBGC actuarial assumptions for single employer plan terminations.

"<u>Unused Fee</u>" is defined in <u>Section</u><u> </u><u>5.1</u>.

"<u>Warrant</u>" means that certain warrant for the purchase of capital stock of the Company dated as of the Closing Date executed by the Company in favor of Chatham Capital.

"<u>Withholding Certificate</u>" is defined in <u>Section</u><u> </u><u>7.6.4</u>.

"<u>Wholly-Owned Subsidiary</u>" means, as to any Person, a Subsidiary all of the Equity Interests of which (except directors' qualifying Equity Interests) are at the time directly or indirectly owned by that Person and/or another Wholly-Owned Subsidiary of that Person. Unless the context otherwise requires, each reference to Wholly-Owned Subsidiaries refers to Wholly-Owned Subsidiaries of the Company.

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"<u>Write-Down and Conversion Powers</u>" means, with respect to any EEA Resolution Authority, the write-down and conversion powers of such EEA Resolution Authority from time to time under the Bail-In Legislation for the applicable EEA Member Country, which write-down and conversion powers are described in the EU Bail-In Legislation Schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Certain Interpretive Provisions</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The meanings of defined terms are equally applicable to the singular and plural forms of the defined terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Section, Annex, Schedule and Exhibit references are to this Agreement unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The term "including" is not limiting and means "including without limitation."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the computation of periods of time from a specified date to a later specified date, the word "from" means "from and including"; the words "to" and "until" each mean "to but excluding", and the word "through" means "to and including."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Unless otherwise expressly provided in this Agreement, (i) references to agreements (including this Agreement and the other Loan Documents) and other contractual instruments include all subsequent amendments, restatements, supplements, and other modifications thereto, but only to the extent that those amendments, restatements, supplements, and other modifications are not prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation are to be construed as including all statutory and regulatory provisions amending, replacing, supplementing, or interpreting that statute or regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) This Agreement and the other Loan Documents may use several different limitations, tests, or measurements to regulate the same or similar matters. All such limitations, tests, and measurements are cumulative and each is to be performed in accordance with its terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) This Agreement and the other Loan Documents are the result of negotiations among and have been reviewed by counsel to Administrative Agent, Borrowers, the Lenders, and the other parties thereto and are the products of all parties. Accordingly, they are not to be construed against Administrative Agent or the Lenders merely because of Administrative Agent's or Lenders' involvement in their preparation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) If any delivery due date specified in <u>Section</u><u> </u><u>10.1</u> for the delivery of reports, certificates, and other information required to be delivered pursuant to <u>Section</u><u> </u><u>10.1</u> falls on a day which is not a Business Day, then that due date will be extended to the immediately following Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) A Default or Event of Default will be deemed to exist at all times during the period commencing on the date that Default or Event of Default occurs to the date on which that Default or Event of Default is waived in writing pursuant to this Agreement or, in the case of a Default, is cured within any period of cure expressly provided for in this Agreement, and an Event of Default will "continue" or be "continuing" until that Event of Default has been waived in writing by Administrative Agent and the Required Lenders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 <u>Accounting and Other Terms</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Unless otherwise expressly provided in this Agreement, each accounting term used in this Agreement has the meaning given it under GAAP applied on a basis consistent with those used in preparing the Financial Statements and using the same inventory valuation method as used in the Financial Statements, except for any change required or permitted by GAAP if Borrowers' certified public accountants concur in that change, the change is disclosed to Administrative Agent, and <u>Section</u><u> </u><u>11.12</u> is amended in a manner satisfactory to Administrative Agent to take into account the effects of the change. Notwithstanding any change in GAAP after December 31, 2019, that would require lease obligations that would have been treated as operating leases under GAAP as in effect on December 31, 2019, to be recognized on the balance sheet of any Person, such leases shall continue to be treated as operating leases for purposes of this Agreement, and any obligations in respect thereof shall not constitute Debt hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) All terms used in this Agreement which are defined in Article 8 or Article 9 of the UCC and which are not otherwise defined in this Agreement have the same meanings in this Agreement as set forth therein, except that terms used in this Agreement which are defined in the UCC as in effect in the State of New York on the date of this Agreement will continue to have the same meaning notwithstanding any replacement or amendment of that statute except as Administrative Agent may otherwise determine.

SECTION 2 COMMITMENTS OF THE LENDERS; BORROWING AND CONVERSION PROCEDURES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 <u>Commitments</u>. On and subject to the terms and conditions of this Agreement, each of the Lenders, severally and for itself alone, agrees to make loans to Borrowers as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.1 <u>Revolving Commitment</u>. Each Lender with a Revolving Commitment agrees to make loans on a revolving basis ("Revolving Loans") from time to time until the Termination Date in that Lender's Pro Rata Share of the aggregate amounts that Borrower Representative requests from all Lenders. The Revolving Outstandings will not at any time exceed the aggregate Revolving Commitments of all Lenders. The Commitments of the Lenders to make Revolving Loans will expire on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1.2 <u>Term</u><u> </u><u>Loan Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender with a Term A Loan Commitment agrees to make a loan to Borrowers (each such loan, a "<u>Term</u><u> </u><u>A Loan</u>") on the Closing Date in that Lender's Pro Rata Share of the aggregate Term A Loan Commitments of all Lenders. The Commitments of the Lenders to make Term A Loans will expire concurrently with the making of Term A Loans on the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender with a Interest Line Loan Commitment agrees to make one or more loans (each such loan, a "<u>Interest Line Loan</u>") during the Interest Line Loan Availability Period in that Lender's Pro Rata Share of the aggregate amounts that Borrower Representative requests from all Lenders. The aggregate amount of all Interest Line Loans made will not exceed the aggregate Interest Line Loan Commitments of all Lenders. The Commitments of the Lenders to make Interest Line Loans will decrease concurrently with the making of Interest Line Loans on each applicable borrowing date by an amount equal to the aggregate amount of the Interest Line Loans made on that borrowing date. The Commitments of the Lenders to make Interest Line Loans will expire at the end of the Interest Line Loan Availability Period.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 <u>Loan Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.1 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2.2 <u>Borrowing Procedures</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrower Representative shall give written notice (each such written notice, a "<u>Notice of Borrowing</u>") substantially in the form of <u>Exhibit</u><u> </u><u>D</u> to Administrative Agent and each Lender with an applicable Commitment of each proposed borrowing not later than 1:00 p.m. (New York time) three Business Days prior to the proposed date of that borrowing (or, in the case of any Interest Line Loan, ten (10) Business Days prior to the proposed date of that borrowing (or such shorter period as Administrative Agent may agree in writing), which proposed date of borrowing must be an interest payment date pursuant to <u>Section</u><u> </u><u>4.1.5</u>). Each such notice will be effective upon receipt by Administrative Agent, will be irrevocable, and must specify the date and amount of the requested borrowing. On the requested borrowing date, each Lender with an applicable Commitment shall provide Administrative Agent with immediately available funds, to Administrative Agent's account, covering that Lender's Pro Rata Share of that borrowing so long as the applicable Lender has not received written notice that the conditions precedent set forth in <u>Section</u><u> </u><u>12</u> with respect to that borrowing have not been satisfied. After Administrative Agent's receipt of the proceeds of the applicable Loans from Lenders with applicable Commitments, Administrative Agent shall make the proceeds of those Loans available to Borrowers on the applicable borrowing date by transferring to Borrowers immediately available funds equal to the proceeds received by Administrative Agent. Each borrowing must be on a Business Day. Each borrowing of a Loan (other than an Interest Line Loan) must be in an aggregate amount of at least $100,000 and an integral multiple of $50,000. Each borrowing of an Interest Line Loan must be in an aggregate amount not greater than the aggregate amount of accrued interest that Borrowers have elected to pay with the proceeds of such Interest Line Loan on the applicable interest payment date pursuant to <u>Section</u><u> </u><u>4.1.5</u>. Each Lender shall, upon request of Administrative Agent, deliver to Administrative Agent a list of all Loans made by that Lender, together with all information related thereto as Administrative Agent reasonably requests. Except as Chatham Capital may otherwise agree in its sole discretion, Borrower Representative may not request, and Lenders with Revolving Commitments will not be required to fund, more than one borrowing of Revolving Loans in any week.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless payment is otherwise timely made by Borrowers, the becoming due of any Obligations (whether principal, interest, fees or other charges) will be deemed to be a request for a borrowing of a Revolving Loan on the due date, in the amount of those Obligations. The proceeds of those Revolving Loans will be disbursed as direct payment of the relevant Obligations. In addition, Administrative Agent may, at its option, charge when due any Obligations against any operating, investment or other account of any Borrower maintained with Administrative Agent or any of its Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 <u>Commitments Several</u>. The failure of any Lender to make a requested Loan on any date will not relieve any other Lender of its obligation (if any) to make a Loan on that date, but no Lender will be responsible for the failure of any other Lender to make any Loan to be made by that other Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.4 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5 <u>Defaulting Lenders</u>. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the following provisions will apply for so long as that Lender is a Defaulting Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.1 Fees will cease to accrue on the unfunded portion of the Revolving Commitment of the Defaulting Lender pursuant to <u>Section</u><u> </u><u>5.1</u>.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.2 Any amount payable to a Defaulting Lender under this Agreement (whether on account of principal, interest, fees, or otherwise and including any amount that would otherwise be payable to that Defaulting Lender pursuant to <u>Section</u><u> </u><u>7.5</u> but excluding <u>Section</u><u> </u><u>8</u>) will, in lieu of being distributed to that Defaulting Lender, be retained by Administrative Agent and, subject to any applicable requirements of law, be applied as follows at such time or times as Administrative Agent determines: (i) <u>first</u>, to the payment of any amounts owing by that Defaulting Lender to Administrative Agent under this Agreement; (ii) <u>second</u>, to the funding of any Loan in respect of which that Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by Administrative Agent; (iii) <u>third</u>, if so determined by Administrative Agent and Borrowers, held as cash collateral for future funding obligations of the Defaulting Lender under this Agreement; (iv) <u>fourth</u>, pro rata, to the payment of any amounts owing to Borrowers or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Borrower or any Lender against that Defaulting Lender as a result of that Defaulting Lender's breach of its obligations under this Agreement; and (v) <u>fifth</u>, to that Defaulting Lender or as otherwise directed by a court of competent jurisdiction. If any such payment is a prepayment of the principal amount of any Loans and made at a time when the conditions set forth in <u>Section</u><u> </u><u>12.2</u> are satisfied, then that payment will be applied solely to prepay the Loans of all Lenders that are not Defaulting Lenders pro rata prior to being applied to the prepayment of any Loans of any Defaulting Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.5.3 No Defaulting Lender will have any right to approve or disapprove any amendment, waiver, consent, or any other action Administrative Agent, the Lenders, or the Required Lenders have taken or may take under this Agreement (including any consent to any amendment or waiver pursuant to <u>Section</u><u> </u><u>15.1</u>), but any waiver, amendment, or modification requiring the consent of all Lenders or each directly affected Lender that affects a Defaulting Lender differently than other affected Lenders will require the consent of that Defaulting Lender.

SECTION 3 EVIDENCING OF LOANS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 <u>Notes</u>. At a Lender's request, (a) the Revolving Loans of that Lender may be evidenced by a Note, with appropriate insertions, payable to that Lender in a face principal amount equal to the amount of that Lender's Revolving Commitment; (b) the Term A Loans of that Lender may be evidenced by a Note, with appropriate insertions, payable to that Lender in a face principal amount equal to the principal amount of that Lender's Term A Loans; and (c) the Interest Line Loans of that Lender may be evidenced by a Note, with appropriate insertions, payable to that Lender in a face principal amount equal to the sum of the principal amount of that Lender's Interest Line Loans *plus* the principal amount of that Lender's Interest Line Loan Commitment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 <u>Recordkeeping</u>. Administrative Agent, on behalf of each Lender, shall record in its records, the date and amount of each Loan made by each Lender and each repayment or conversion thereof. The aggregate unpaid principal amount so recorded will be rebuttably presumptive evidence of the principal amount of the Loans owing and unpaid. The failure to so record any such amount or any error in so recording any such amount will not, however, limit or otherwise affect the Obligations of Borrowers under this Agreement or under any Note to repay the principal amount of the Loans under this Agreement, together with all interest accruing thereon.

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SECTION 4 INTEREST.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 <u>Interest Rates</u>. Borrowers agree to pay interest on the unpaid principal amount of each Loan for the period commencing on the date that Loan is made until that Loan is paid in full as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.1 <u>Cash Interest (Revolving Loans)</u>. Cash interest shall accrue on the principal amount of each Revolving Loan until such Loan is paid in full at a rate per annum equal to 11.00%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.2 <u>Cash Interest (Term</u><u> </u><u>Loans)</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Term</u><u> </u><u>A Loans</u>. Cash interest shall accrue on the principal amount of each Term A Loan until such Loan is paid in full at a rate per annum equal to 11.00%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Interest Line Loans</u>. Cash interest shall accrue on the principal amount of each Interest Line Loan until such Loan is paid in full at a rate per annum equal to 11.00%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.3 <u>PIK Interest Rates</u>. In addition to interest accruing and payable in cash pursuant to <u>Sections</u><u> </u><u>4.1.1</u> and <u>4.1.2</u>, paid-in-kind interest shall accrue on the principal amount of each Loan until such Loan is paid in full at a rate per annum equal to 2.50%; *provided* that if Borrowers elect to pay accrued cash interest payable on any applicable interest payment date using the proceeds of one or more Interest Line Loans pursuant to <u>Section</u><u> </u><u>4.1.5</u>, then the paid-in-kind interest rate applicable to the month in which such cash interest accrued shall be a rate per annum equal to 4.50%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.4 <u>Default Rate</u>. Notwithstanding the foregoing, at any time an Event of Default exists, the cash interest rate applicable to each Loan will automatically be increased by 2.00% during the existence of an Event of Default (and, in the case of Obligations not bearing interest, those Obligations will, during the existence of an Event of Default, bear interest at the highest cash interest rate applicable to the Loans *plus* 2.00%), but any such increase may be rescinded by Administrative Agent and the Required Lenders, notwithstanding <u>Section</u><u> </u><u>15.1</u>. In no event will interest payable by Borrowers to any Lender under this Agreement exceed the maximum rate permitted under applicable law, and if any such provision of this Agreement is in contravention of any such law, then that provision will be deemed modified to limit that interest to the maximum rate permitted under that law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1.5 <u>Interest Payment Dates</u>. Accrued interest on each Loan is payable in arrears on the first Business Day of each month, upon a prepayment of that Loan, and at maturity. After maturity, and at any time an Event of Default exists, accrued interest on all Loans will be payable on demand. Borrowers may, by written election made in the applicable Notice of Borrowing, use the proceeds of one or more Interest Line Loans (i) to pay 50% of the accrued cash interest payable on any applicable interest payment date from and including June 1, 2026, through and including December 1, 2026, and (ii) to pay 25% of the accrued cash interest payable on any applicable interest payment date from and including the interest payment date occurring on or about January 1, 2026, through and including June 1, 2027. Each Borrower hereby authorizes Administrative Agent to, and Administrative Agent may, from time to time, charge the Loan Account pursuant to <u>Section</u><u> </u><u>7.1.2</u> with the amount of any interest payment due under this Agreement. In addition, interest accrued pursuant to <u>Section</u><u> </u><u>4.1.3</u> shall be capitalized and added to the principal balance of the Loans on the first Business Day of each month and shall itself, as principal, accrue interest pursuant to <u>Section</u><u> </u><u>4.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.2 [Reserved].

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.3 <u>Computation of Interest</u>. Interest will be computed for the actual number of days elapsed on the basis of a year of 360 days.

SECTION 5 FEES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.1 <u>Unused Fee</u>. Borrowers shall pay to Administrative Agent for the account of each Lender with a Revolving Commitment (except as provided in <u>Section</u><u> </u><u>2.5</u>) an unused fee (the "<u>Unused Fee</u>"), for the period from the Closing Date to the Termination Date, at the Revolver Unused Fee Rate in effect from time to time of that Lender's Pro Rata Share (as adjusted from time to time) of the average daily unused amount of the Revolving Commitments. For purposes of calculating usage under this <u>Section</u><u> </u><u>5.1</u>, the Revolving Commitments will be deemed used to the extent of Revolving Outstandings. Unused Fees will be payable in arrears on the first Business Day of each month and on the Termination Date for any period then ending for which Unused Fees have not previously been paid. Unused Fees will be computed for the actual number of days elapsed on the basis of a year of 360 days.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.2 <u>Administrative Agent</u><u>'</u><u>s Fees</u>. Borrowers shall pay to Administrative Agent all agent's fees as are mutually agreed to from time to time by Borrowers and Administrative Agent, including the fees set forth in the Agent Fee Letter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.3 <u>Prepayment Fee</u>. Without limiting the generality of <u>Section</u><u> </u><u>5.2</u>, Borrowers shall pay to Administrative Agent, for the ratable benefit of each applicable Lender, each Prepayment Fee in accordance with the Agent Fee Letter.

SECTION 6 REDUCTION OR TERMINATION OF COMMITMENTS; PREPAYMENTS; REPAYMENTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1 <u>Reduction or Termination of Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.1 <u>Voluntary Reduction or Termination of the Revolving Commitments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Borrowers may from time to time on at least five Business Days' prior written notice from Borrower Representative to Administrative Agent (which shall promptly advise each applicable Lender thereof) permanently reduce the Revolving Commitments to an amount not less than the Revolving Outstandings. Any such reduction must be in an amount not less than $200,000 or a higher integral multiple of $100,000. Borrower Representative may not request more than one such reduction in any month. Concurrently with any such reduction of the Revolving Commitments, Borrowers shall pay all Prepayment Fees and all accrued and unpaid Unused Fees in respect of the Revolving Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Concurrently with any reduction of the Revolving Commitments to zero, Borrowers shall pay all interest on the Revolving Loans, all Prepayment Fees and all accrued and unpaid Unused Fees in respect of the Revolving Commitments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.2 <u>Voluntary Reduction or Termination of the Interest Line Loan Commitments</u>. Borrowers may from time to time on at least five Business Days' prior written notice from Borrower Representative to Administrative Agent (which shall promptly advise each applicable Lender thereof) permanently reduce the Interest Line Loan Commitments. Any such reduction must be in an amount not less than $200,000 or a higher integral multiple of $100,000. Concurrently with any such reduction of the Interest Line Loan Commitments, Borrowers shall pay all Prepayment Fees in respect of the Interest Line Loan Commitments.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.1.3 <u>All Reductions of Commitments</u>. All reductions of the Revolving Commitments will reduce the Revolving Commitments ratably among the Lenders according to their respective Pro Rata Shares. All reductions of the Interest Line Loan Commitments will reduce the Interest Line Loan Commitments ratably among the Lenders according to their respective Pro Rata Shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2 <u>Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.1 <u>Voluntary Prepayments</u>. Borrowers may from time to time prepay the Loans in whole or in part. Borrower Representative shall give Administrative Agent (which shall promptly advise each applicable Lender) notice of any such prepayment not later than 1:00 p.m. (New York time) three Business Days prior to the proposed date of that prepayment (which must be a Business Day), specifying the Loans to be prepaid and the date and amount of prepayment. Any such partial prepayment must be in an amount equal to $200,000 or a higher integral multiple of $100,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.2.2 <u>Mandatory Prepayments</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Revolving Loans</u>. Borrowers shall immediately repay the Revolving Loans at any time when the aggregate principal amount of all Revolving Loans exceeds the aggregate Revolving Commitments of all Lenders, to the full extent of any such excess; *provided*, that, for the avoidance of doubt, no Prepayment Fee shall be due and owing in connection with any such repayment so long as the Revolving Commitments have not been terminated or reduced in connection therewith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Term Loans</u>. Borrowers shall make a prepayment of the Term Loans until paid in full upon the occurrence of any of the following at the following times and in the following amounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any Asset Disposition, in an amount equal to 100% of those Net Cash Proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any issuance of Equity Interests of any Loan Party (excluding any issuance of Equity Interests (A) pursuant to any employee or director option program, benefit plan or compensation program or agreement, and (B) by a Subsidiary to any Borrower or another Subsidiary), in an amount equal to 100% of those Net Cash Proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) concurrently with the receipt by any Loan Party of any Net Cash Proceeds from any issuance of any Debt of any Loan Party (excluding Debt permitted by <u>Section</u><u> </u><u>11.1</u>), in an amount equal to 100% of those Net Cash Proceeds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) concurrently with the receipt by any Loan Party of any Extraordinary Receipts, in an amount equal to 100% of those Extraordinary Receipts; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) within five Business Days after the date that Fiscal Year-end financial statements are required to be delivered pursuant to <u>Section</u><u> </u><u>10.1.1</u> (commencing with the Fiscal Year ending on September 30, 2026), in an amount equal to the ECF Percentage of Excess Cash Flow for that ECF Period; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) concurrently with the receipt by the Company of any Financial Covenant Cure Amount pursuant to <u>Section</u><u> </u><u>13.4</u>, in an amount equal to the excess, if any, of (A) such Financial Covenant Cure Amount over (B) 10% of EBITDA for the Computation Period ending on the applicable Testing Date (calculated without giving effect to such Financial Covenant Cure Amount).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3 <u>Manner of Prepayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.3.1 <u>All Prepayments</u>. Any prepayment of Term Loans is subject to <u>Section</u><u> </u><u>5.3</u> (as applicable). All prepayments of the Term Loans will be applied <u>first</u> to the Interest Line Loans and <u>second</u> to the Term A Loans, in each case in the inverse order of maturity to the remaining installments thereof (including, without limitation, the final installment thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4 <u>Repayments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.1 <u>Revolving Loans</u>. Unless sooner paid in full, Borrowers shall pay the Revolving Loans of each Lender in full on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.2 <u>Term</u><u> </u><u>A Loans</u>. Borrowers shall pay the principal amount of each Term A Loan of each Lender in arrears in (a) monthly installments, each payable on the first Business Day of each month, commencing on June 1, 2028, in an amount equal to (i) the original principal amount of such Term A Loan *divided by* (ii) 240 and (b) a final installment equal to the remaining outstanding principal balance of the Term A Loans, payable on the Termination Date. Unless sooner paid in full, the outstanding principal balance of the Term A Loans must be paid in full on the Termination Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.4.3 <u>Interest Line Loans</u>. Borrowers shall pay the principal amount of each Interest Line Loan (if any) of each Lender in arrears in (a) monthly installments, each payable on the first Business Day of each month, commencing on June 1, 2028, in an amount equal to (i) the original principal amount of such Interest Line Loan *divided by* (ii) 240 and (b) a final installment equal to the remaining outstanding principal balance of the Interest Line Loans, payable on the Termination Date. Unless sooner paid in full, the outstanding principal balance of the Interest Line Loans must be paid in full on the Termination Date.

SECTION 7 MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 <u>Making of Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.1 Borrowers shall make all payments of principal or interest on the Loans, and of all fees, to Administrative Agent in immediately available funds to Administrative Agent's account not later than 2:00 p.m. (New York time) on the date due, and funds received after that time will be deemed to have been received by Administrative Agent on the following Business Day. Borrower shall make all payments to Administrative Agent and the Lenders without set-off, counterclaim, recoupment, deduction, or other defense. Subject to <u>Section</u><u> </u><u>2.5</u>, Administrative Agent shall promptly remit to each Lender its share of all such payments received in collected funds by Administrative Agent for the account of that Lender. Notwithstanding the foregoing, Borrowers shall make all payments under <u>Section</u><u> </u><u>8.1</u> directly to the Lender entitled thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1.2 The Lenders and the Borrowers hereby authorize Administrative Agent to, and Administrative Agent may, from time to time, charge the Loan Account of Borrowers with any amount due and payable by Borrowers under any Loan Document, including under <u>Section</u><u> </u><u>15.5</u>. Each of the Lenders and the Borrowers agrees that Administrative Agent may make any such charges regardless of whether any Default or Event of Default has occurred and is continuing or whether any of the conditions precedent in <u>Section</u><u> </u><u>12.2</u> have been satisfied. Any amount charged to the Loan Account of the Borrowers will be deemed a Revolving Loan or a Loan under this Agreement made by the applicable Lenders to the Borrowers, funded by Administrative Agent on behalf of the applicable Lenders, and subject to <u>Section</u><u> </u><u>2.1</u>. The Lenders and the Borrowers confirm that any charges that Administrative Agent may so make to the Loan Account of the Borrowers as provided in this Agreement will be made as an accommodation to the Borrowers and solely at Administrative Agent's discretion. Administrative Agent shall from time to time upon the request of any Lender charge the Loan Account of the Borrowers with any amount due and payable under any Loan Document to that Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 <u>Application of Certain Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.1 So long as no Default or Event of Default has occurred and is continuing, (a) payments matching specific scheduled payments then due will be applied to those scheduled payments and (b) voluntary and mandatory prepayments will be applied as set forth in <u>Sections</u><u> </u><u>6.2</u> and <u>6.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2.2 Subject to any written agreement among Administrative Agent and the Lenders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) All payments of principal and interest in respect of outstanding Loans, all payments of fees, and all other payments in respect of any other Obligations, will be allocated by Administrative Agent among Administrative Agent and the Lenders, as applicable, in proportion to their respective Pro Rata Shares or otherwise as provided in this Agreement or, in respect of payments not made on account of Loans, as designated by the Person making payment when the payment is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) After the occurrence and during the continuance of an Event of Default, Administrative Agent may, and upon the direction of the Required Lenders shall, apply all payments in respect of any Obligations and all proceeds of the Collateral, subject to the provisions of this Agreement, as follows: (i) <u>first</u>, ratably to pay the Obligations in respect of any fees, expense reimbursements, indemnities, and other amounts then due and payable to Administrative Agent until paid in full; (ii) <u>second</u>, ratably to pay the Obligations in respect of any fees (other than any Prepayment Fee) and indemnities then due and payable to the Lenders until paid in full; (iii) <u>third</u>, ratably (to Administrative Agent in accordance with Administrative Agent's outstanding Protective Advances) to pay interest then due and payable in respect of Protective Advances until paid in full; (iv) <u>fourth</u>, ratably (to Administrative Agent in accordance with Administrative Agent's outstanding Protective Advances) to pay principal of the Protective Advances until paid in full; (v) <u>fifth</u>, ratably, to pay interest then due and payable in respect of the Loans until paid in full; (vi) <u>sixth</u>, ratably, to pay principal of the Loans until paid in full; (vii) <u>seventh</u>, ratably to pay the Obligations in respect of any Prepayment Fee then due and payable until paid in full; and (viii) <u>eighth</u>, to the ratable payment of all other Obligations then due and payable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) For purposes of <u>Section</u><u> </u><u>7.2.2(b)</u>, "paid in full" means payment in cash of all amounts owing under the Loan Documents (or, to the extent those Obligations are contingent, to provide Cash Collateral in respect of those Obligations) according to the terms thereof, including loan fees, service fees, professional fees, interest (and specifically including interest accrued after, or that would have accrued but for, the commencement of any Insolvency Proceeding), default interest, interest on interest, and expense reimbursements, whether or not same would be or is allowed or disallowed in whole or in part in any Insolvency Proceeding.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event of a direct conflict between the priority provisions of this <u>Section</u><u> </u><u>7.2.2</u> and other provisions contained in any other Loan Document, it is the intention of the parties to this Agreement that all such priority provisions be read together and construed, to the fullest extent possible, to be in concert with each other. In the event of any actual, irreconcilable conflict that cannot be resolved as aforesaid, the terms and provisions of this <u>Section</u><u> </u><u>7.2.2</u> will control and govern.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 <u>Due Date Extension</u>. If any payment of principal or interest with respect to any of the Loans, or of any fees, falls due on a day which is not a Business Day, then that due date will be extended to the immediately following Business Day, and, in the case of principal, additional interest will accrue and be payable for the period of any such extension.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.4 <u>Setoff</u>. Each Borrower, for itself and each other Loan Party, agrees that Administrative Agent and each Lender have all rights of set-off and bankers' lien provided by applicable law, and in addition thereto, each Borrower, for itself and each other Loan Party, agrees that at any time any Event of Default exists, Administrative Agent and each Lender may apply to the payment of any Obligations of each Borrower and each other Loan Party under this Agreement, whether or not then due, any and all balances, credits, deposits, accounts, or moneys of each Borrower and each other Loan Party then or thereafter with Administrative Agent or that Lender (other than funds held in any Excluded Deposit Account).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.5 <u>Proration of Payments</u>. Except as provided in <u>Section</u><u> </u><u>2.5</u>, if any Lender obtains any payment or other recovery (whether voluntary, involuntary, by application of offset, or otherwise), on account of principal of or interest on any Loan (but excluding any payment pursuant to <u>Section</u><u> </u><u>8</u> or <u>15.6</u>) in excess of its applicable Pro Rata Share of payments and other recoveries obtained by all Lenders on account of principal of and interest on the Loans then held by them, then that Lender shall purchase from the other Lenders such participations in the Loans held by them as are necessary to cause that purchasing Lender to share the excess payment or other recovery ratably with each of them, but if all or any portion of the excess payment or other recovery is thereafter recovered from that purchasing Lender, then that purchase will be rescinded and the purchase price restored to the extent of that recovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.1 To the extent permitted by applicable law, all payments under this Agreement or under the Loan Documents (including any payment of principal, interest, or fees) to, or for the benefit, of any Person will be made by Borrowers free and clear of and without deduction or withholding for, or account of, any Taxes now or hereafter imposed by any taxing authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.2 If Borrowers make any payment under this Agreement or under any other Loan Document in respect of which any Borrower is required by applicable law to deduct or withhold any Indemnified Taxes, then Borrowers shall increase the payment under this Agreement or under any other Loan Document such that after the reduction for the amount of Indemnified Taxes withheld (and any Indemnified Taxes withheld or imposed with respect to the additional payments required under this <u>Section</u><u> </u><u>7.6.2</u>), the amount paid equals the amount that was payable under this Agreement or under any other Loan Document without regard to this <u>Section</u><u> </u><u>7.6.2</u>. To the extent Borrowers withhold any Taxes on payments under this Agreement or under any other Loan Document, Borrowers shall pay the full amount deducted to the relevant taxing authority within the time allowed for payment under applicable law and shall deliver to Administrative Agent as soon as practicable after Borrowers have made payment to that taxing authority a receipt issued by that taxing authority (or other evidence satisfactory to Administrative Agent) evidencing the payment of all amounts so required to be deducted or withheld from that payment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.3 If any Lender or Administrative Agent or other recipient is required by law to make any payments of any Indemnified Taxes on or in relation to any amounts received or receivable under this Agreement or under any other Loan Document, or any Indemnified Tax is assessed against a Lender or Administrative Agent or other recipient with respect to amounts received or receivable under this Agreement or under any other Loan Document, Borrowers will indemnify that Person against (i) that Indemnified Tax and (ii) any Indemnified Taxes imposed as a result of the receipt of the payment under this <u>Section</u><u> </u><u>7.6.3</u>. A certificate prepared in good faith as to the amount of any such payment by that Lender or Administrative Agent or other recipient will, absent manifest error, be final, conclusive, and binding on all parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.4 (a)To the extent permitted by applicable law, each Lender that is not a United States person within the meaning of Code Section 7701(a)(30) (a "<u>Non-U.S. Lender</u>") shall deliver to Borrower Representative and Administrative Agent on or prior to the Closing Date (or in the case of a Lender that is an Assignee, on the date of the assignment to that Lender) two accurate and complete original signed copies of IRS Form W-8BEN, W-8BEN-E, W-8ECI, or W-8IMY (or any successor or other applicable form prescribed by the IRS) certifying to that Lender's entitlement to a complete exemption from, or a reduced rate in, United States withholding tax on interest payments to be made under this Agreement or with respect to any Loan. If a Lender that is a Non-U.S. Lender is claiming a complete exemption from withholding on interest pursuant to Code Sections 871(h) or 881(c), then that Lender shall deliver (along with two accurate and complete original signed copies of IRS Form W-8BEN or W-8BEN-E) a certificate in form and substance reasonably acceptable to Administrative Agent (any such certificate, a "<u>Withholding Certificate</u>"). In addition, each Lender that is a Non-U.S. Lender shall, from time to time after the Closing Date (or in the case of a Lender that is an Assignee, after the date of the assignment to that Lender) when a lapse in time (or change in circumstances occurs) renders the prior certificates delivered under this Agreement obsolete or inaccurate in any material respect, to the extent permitted under applicable law, deliver to Borrower Representative and Administrative Agent two new and accurate and complete original signed copies of an IRS Form W-8BEN, W-8BEN-E, W-8ECI, or W-8IMY (or any successor or other applicable forms prescribed by the IRS), and if applicable, a new Withholding Certificate, to confirm or establish the entitlement of that Lender or Administrative Agent to an exemption from, or reduction in, United States withholding tax on interest payments to be made under this Agreement or with respect to any Loan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each Lender that is not a Non-U.S. Lender shall provide two properly completed and duly executed copies of IRS Form W-9 (or any successor or other applicable form) to Borrower Representative and Administrative Agent certifying that that Lender is exempt from United States backup withholding Tax. To the extent that a form provided pursuant to this <u>Section</u><u> </u><u>7.6.4(b)</u> is rendered obsolete or inaccurate in any material respect as result of change in circumstances with respect to the status of a Lender or Administrative Agent, then that Lender or Administrative Agent shall, to the extent permitted by applicable law, deliver to Borrower Representative and, as applicable, Administrative Agent revised forms necessary to confirm or establish the entitlement to that Lender's exemption from United States backup withholding Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No Borrower will be required to pay additional amounts to any Lender, or indemnify any Lender, under this <u>Section</u><u> </u><u>7.6</u> to the extent that those obligations are attributable to the failure of that Lender to comply with this <u>Section 7.6.4</u> or with <u>Section</u><u> </u><u>7.6.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Lender shall indemnify Administrative Agent and hold Administrative Agent harmless for the full amount of any and all present or future Taxes and related liabilities (including penalties, interest, additions to Tax and expenses, and any Taxes imposed by any jurisdiction on amounts payable to Administrative Agent under this <u>Section</u><u> </u><u>7.6</u>) which are imposed on or with respect to principal, interest, or fees payable to that Lender under this Agreement and which are not paid by Borrowers pursuant to this <u>Section</u><u> </u><u>7.6</u>, whether or not those Taxes or related liabilities were correctly or legally asserted. This indemnification must be made within 30 days from the date Administrative Agent makes written demand therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Any Lender that is entitled to any other exemption from or reduction of withholding Tax with respect to payments made under any Loan Document shall deliver to the Borrower Representative and the Administrative Agent, at the time or times reasonably requested by the Borrower Representative or the Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower Representative or the Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrower Representative or the Administrative Agent, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower Representative or the Administrative Agent as will enable the Borrower Representative or the Administrative Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in <u>Section</u><u> </u><u>7.6.4(a)</u> through <u>(d)</u> or <u>Section</u><u> </u><u>7.6.6</u>) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject such Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Without duplication or derogation of <u>Section 7.6.2</u>, if any payment to be made by a Canadian Borrower under this Agreement or any other Loan Document would be subject to withholding Tax under Part XIII of the ITA, then that Canadian Borrower shall (i) make the required deduction or withholding and remit the withheld amount to the Canada Revenue Agency in accordance with the ITA, and (ii) if that payment is an Indemnified Tax, pay such additional amounts as are necessary so that the net amount received by the recipient equals the amount it would have received had no such withholding been required. Each Lender that is entitled to an exemption from, or reduction of, Canadian withholding Tax under Part XIII of the ITA or any applicable tax treaty shall deliver to the Borrower Representative and Administrative Agent, at the time or times reasonably requested by the Borrower Representative or Administrative Agent, such properly completed and executed documentation reasonably requested by the Borrower Representative or Administrative Agent as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, if requested by Borrower Representative or Administrative Agent, any Lender shall deliver such other documentation prescribed by the ITA or reasonably requested by the Borrower Representative or Administrative Agent as will enable the Borrower Representative or Administrative Agent to determine whether or not that Lender is subject to Canadian withholding Tax.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.5 If Administrative Agent or a Lender determines, in its reasonable discretion, that it has received a refund of any Indemnified Taxes as to which it has been indemnified by the Borrowers or with respect to which the Borrowers have paid additional amounts pursuant to this <u>Section</u><u> </u><u>7.6</u>, then Administrative Agent or that Lender, as applicable, shall pay over that refund to the Borrowers (but only to the extent of indemnity payments made, or additional amounts paid, by the Borrowers under this <u>Section</u><u> </u><u>7.6</u> with respect to the Indemnified Taxes giving rise to that refund), net of any Taxes imposed by reason of receipt of that refund and all out-of-pocket expenses of Administrative Agent or that Lender, as applicable, and without interest (other than any interest paid by the relevant governmental authority with respect to that refund, which interest must be paid to the Borrowers). Upon the request of Administrative Agent or any such Lender, Borrowers shall repay any amount paid to the Borrowers (*plus* any penalties, interest, or other charges imposed by the relevant governmental authority) to Administrative Agent or that Lender in the event Administrative Agent or that Lender is required to repay any such refund to any such governmental authority. Nothing in this <u>Section</u><u> </u><u>7.6.5</u> is to be construed to require Administrative Agent or any Lender to make available its tax returns (or any other information which it deems confidential) to any Borrower or any other Person.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.6 If a payment made to a Lender under any Loan Document would be subject to U.S. federal income withholding Tax imposed by FATCA if that Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), then that Lender shall deliver to Administrative Agent (or, in the case of a Participant, to the Lender granting the participation only) at the time or times prescribed by law and at any other time or times reasonably requested by Administrative Agent (or, in the case of a Participant, the Lender granting the participation) all documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and all additional documentation reasonably requested by Administrative Agent (or, in the case of a Participant, the Lender granting the participation) as is necessary for Administrative Agent or Borrowers to comply with their obligations under FATCA and to determine that that Lender has complied with that Lender's obligations under FATCA or to determine the amount to deduct and withhold from that payment. Solely for purposes of this <u>Section</u><u> </u><u>7.6.6</u>, "FATCA" is deemed to include any amendments made to FATCA after the date of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.6.7 Each party's obligations under this <u>Section</u><u> </u><u>7.6</u> shall survive the resignation or replacement of the Administrative Agent or any assignment of rights by, or the replacement of, a Lender, the termination of the Commitments and the repayment, satisfaction or discharge of all obligations under any Loan Document.

SECTION 8 INCREASED COSTS.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 <u>Increased Costs</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any Change in Law (i) imposes, modifies, or deems applicable any reserve (including any reserve imposed by the FRB), special deposit, or similar requirement against assets of, deposits with, or for the account of, or credit extended by, any Lender; or (ii) imposes on any Lender any other condition (other than Taxes) affecting its Loans, its Note(s), or its obligation to make Loans, and the result of anything described in <u>clauses</u><u> </u><u>(i)</u> and <u>(ii)</u> above is to increase the cost to (or to impose a cost on) that Lender of making or maintaining any Loan, or to reduce the amount of any sum received or receivable by that Lender under this Agreement or under its Note(s) with respect thereto, then upon written demand by that Lender (which demand must be accompanied by a statement setting forth the basis for that demand and a calculation of the amount thereof in reasonable detail, a copy of which must be furnished to Administrative Agent), Borrowers shall pay directly to that Lender such additional amount as will compensate that Lender for that increased cost or that reduction, so long as the applicable amounts have accrued on or after the day that is 180 days prior to the date on which that Lender first made demand therefor.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any Lender reasonably determines that any change in, or the adoption or phase-in of, any applicable law, rule, or regulation regarding capital adequacy, or any change in the interpretation or administration thereof by any governmental authority, central bank, or comparable agency charged with the interpretation or administration thereof, or the compliance by any Lender or any Person controlling any Lender with any request or directive regarding capital adequacy (whether or not having the force of law) of any such authority, central bank, or comparable agency, has or would have the effect of reducing the rate of return on that Lender's or that controlling Person's capital as a consequence of that Lender's obligations under this Agreement to a level below that which that Lender or that controlling Person could have achieved but for that change, adoption, phase-in, or compliance (taking into consideration that Lender's or that controlling Person's policies with respect to capital adequacy) by an amount deemed by that Lender or that controlling Person to be material, then from time to time, upon written demand by that Lender (which demand must be accompanied by a statement setting forth the basis for that demand and a calculation of the amount thereof in reasonable detail, a copy of which must be furnished to Administrative Agent), Borrowers shall pay to that Lender such additional amount as will compensate that Lender or that controlling Person for that reduction, so long as the applicable amounts have accrued on or after the day that is 180 days prior to the date on which that Lender first made demand therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.3 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.4 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.5 <u>Mitigation of Circumstances; Replacement of Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender shall promptly notify Borrower Representative and Administrative Agent of any event of which it has knowledge that will result in, and will use reasonable commercial efforts available to it (and not, in that Lender's sole judgment, otherwise disadvantageous to that Lender) to mitigate or avoid, any obligation by Borrowers to pay any amount pursuant to <u>Sections</u><u> </u><u>7.6</u> or <u>8.1</u> (and, if any Lender has given notice of any such event and thereafter that event ceases to exist, that Lender shall promptly so notify Borrower Representative and Administrative Agent). Without limiting the foregoing, each Lender shall designate a different funding office if that designation will avoid (or reduce the cost to Borrowers of) any such event and that designation will not, in that Lender's sole judgment, be otherwise disadvantageous to that Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If Borrowers become obligated to pay additional amounts to any Lender pursuant to <u>Sections</u><u> </u><u>7.6</u> or <u>8.1</u>, or any Lender becomes a Defaulting Lender, then Borrower Representative may designate another financial institution that is acceptable to Administrative Agent in its reasonable discretion (a "<u>Replacement Lender</u>") to purchase the Loans of that Lender and that Lender's rights under this Agreement, without recourse to or warranty by, or expense to, that Lender, for a purchase price equal to the outstanding principal amount of the Loans payable to that Lender *plus* any accrued but unpaid interest on those Loans and all accrued but unpaid fees owed to that Lender and any other amounts owed to that Lender under this Agreement and any other Loan Document, and to assume all the obligations of that Lender under this Agreement. Upon any such purchase and assumption (pursuant to an Assignment Agreement), the applicable Lender will no longer be a party to this Agreement or have any rights under this Agreement (other than rights with respect to indemnities and similar rights applicable to that Lender prior to the date of that purchase and assumption) and will be relieved from all obligations to Borrowers under this Agreement, and the Replacement Lender will succeed to the rights and obligations of that Lender under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.6 <u>Conclusiveness of Statements; Survival of Provisions</u>. Determinations and statements of any Lender pursuant to <u>Section</u><u> </u><u>8.1</u> will be conclusive absent demonstrable error. Lenders may use reasonable averaging and attribution methods in determining compensation under <u>Section</u><u> </u><u>8.1</u>, and the provisions of <u>Section</u><u> </u><u>8.1</u> will survive repayment of the Obligations, cancellation of any Note(s), and termination of this Agreement.

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SECTION 9 REPRESENTATIONS AND WARRANTIES.

To induce Administrative Agent and the Lenders to enter into this Agreement and to induce the Lenders to make Loans under this Agreement, each Borrower represents and warrants to Administrative Agent and the Lenders that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.1 <u>Organization</u>. Each of the Loan Parties and their Subsidiaries is validly existing and in good standing under the laws of its jurisdiction of organization, and each of the Loan Parties and their Subsidiaries is duly qualified to do business in each jurisdiction where, because of the nature of its activities or properties, that qualification is required, except for any jurisdiction where the failure to so qualify could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.2 <u>Authorization; No Conflict</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Loan Party is duly authorized to execute and deliver each Loan Document to which it is a party, each Borrower is duly authorized to borrow monies under this Agreement, and each Loan Party is duly authorized to perform its Obligations under each Loan Document to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The execution, delivery, and performance by each Loan Party of each Loan Document to which it is a party, and the borrowings by each Borrower under this Agreement, do not and will not (i) require any consent or approval of any governmental agency or authority (other than any consent or approval that has been obtained and is in full force and effect or the failure of which to obtain could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect); (ii) conflict with (A) any provision of applicable law, other than any such conflicts which could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect, (B) the organizational documents or governing documents of any Loan Party, or (C) any agreement, indenture, instrument, or other document, or any judgment, order, or decree, that is binding upon any Loan Party or any of their respective properties, other than any such conflicts which could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect; or (iii) require, or result in, the creation or imposition of any Lien on any asset of any Loan Party (other than Liens in favor of Administrative Agent created pursuant to the Collateral Documents).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.3 <u>Validity and Binding Nature</u>. Each of this Agreement and each other Loan Document to which any Loan Party is a party is the legal, valid, and binding obligation of that Person, enforceable against that Person in accordance with its terms, subject to bankruptcy, insolvency, and similar laws affecting the enforceability of creditors' rights generally and to general principles of equity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.4 <u>Financial Condition</u>. The Financial Statements, copies of each of which have been delivered to each Lender, were prepared in accordance with GAAP (subject, in the case of any such unaudited statements, to the absence of footnotes and to normal year-end adjustments) and present fairly in all material respects the consolidated financial condition of the Company and its Subsidiaries as at the dates covered in the Financial Statements and the results of their operations for the periods then ended.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.5 <u>No Material Adverse Change</u>. Since September 30, 2025, no event has occurred that has had, or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.6 <u>Litigation and Contingent Liabilities</u>. No litigation (including derivative actions), arbitration proceeding or governmental investigation or proceeding is pending or, to the Loan Parties' knowledge, threatened in writing against any of the Loan Parties and their Subsidiaries, except as set forth in <u>Schedule</u><u> </u><u>9.6</u> or as disclosed to Administrative Agent pursuant to <u>Section</u><u> </u><u>10.1.5(b)</u>. Other than liability incident to any such litigation or proceedings, none of the Loan Parties and their Subsidiaries has any material contingent liabilities that are not listed in <u>Schedule 9.6</u> or permitted by <u>Section</u><u> </u><u>11.1</u>. No litigation (including derivative actions), arbitration proceeding or governmental investigation or proceeding is pending or, to the Loan Parties' knowledge, threatened in writing against any of the Loan Parties and their Subsidiaries that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.7 <u>Ownership of Properties; Liens</u>. Each of the Loan Parties and their Subsidiaries owns good title to and, in the case of owned real property, marketable title to, and in the case of leased real property, a valid leasehold interest in, all of its material properties and assets, real and personal, tangible and intangible, of any nature whatsoever, free and clear of all Liens, charges, and claims, except as permitted by <u>Section</u><u> </u><u>11.2</u>. No financing statement or other public notice with respect to all or any material part of the Collateral is on file or of record in any public office, except filings evidencing Permitted Liens and filings for which termination statements have been delivered to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.8 <u>Equity Ownership</u>. All issued and outstanding Equity Interests of each of the Loan Parties and their Subsidiaries are duly authorized and validly issued, fully paid, non-assessable, and free and clear of all Liens other than those in favor of Administrative Agent, and all such Equity Interests were issued in compliance with all applicable state and federal laws concerning the issuance of securities. <u>Schedule</u><u> </u><u>9.8</u> sets forth the authorized Equity Interests of each of the Loan Parties and their Subsidiaries as of the Closing Date. All of the issued and outstanding Equity Interests of Borrowers are owned as set forth on <u>Schedule</u><u> </u><u>9.8</u> as of the Closing Date, and all of the issued and outstanding Equity Interests of each Wholly-Owned Subsidiary is, directly or indirectly, owned by the Company. As of the Closing Date, except as set forth on <u>Schedule</u><u> </u><u>9.8</u>, there are no pre-emptive or other outstanding rights, options, warrants, conversion rights, or other similar agreements or understandings for the purchase or acquisition of any Equity Interests of any of the Loan Parties and their Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.9 <u>Pension Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except as set forth on <u>Schedule</u><u> </u><u>9.9(a)</u>, no Borrower, none of their Subsidiaries, and no member of the Controlled Group maintains or contributes to any Pension Plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Unfunded Liability of all Pension Plans does not in the aggregate exceed 20% of the Total Plan Liability for all such Pension Plans. Except as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) each Pension Plan complies with all applicable requirements of law and regulations; (ii) no contribution failure under Section 412 of the Code, Section 302 of ERISA, or the terms of any Pension Plan has occurred with respect to any Pension Plan sufficient to give rise to a Lien under Section 303(k) of ERISA or 430(k) of the Code; (iii) there are no pending or, to the knowledge of any Loan Party, threatened (in writing) claims, actions, investigations, or lawsuits against any Pension Plan, any fiduciary of any Pension Plan, or any Borrower or other any member of the Controlled Group with respect to a Pension Plan or a Multiemployer Pension Plan; (iv) within the last five years, neither any Borrower nor any other member of the Controlled Group has engaged in any non-exempt prohibited transaction (as defined in Section 4975 of the Code or Section 406 of ERISA) in connection with any Pension Plan or Multiemployer Pension Plan; (v) within the past five years, neither any Borrower nor any other member of the Controlled Group has engaged in a transaction that resulted in a Pension Plan with an Unfunded Liability being transferred out of the Controlled Group; and (vi) within the last five years, no Termination Event has occurred or is reasonably expected to occur with respect to any Pension Plan.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Except as could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect, (i) all contributions (if any) have been made to any Multiemployer Pension Plan that are required to be made by any Borrower or any other member of the Controlled Group under the terms of the plan or of any collective bargaining agreement or by applicable law; (ii) within the last five years, neither any Borrower nor any other member of the Controlled Group has withdrawn or partially withdrawn from any Multiemployer Pension Plan, incurred any withdrawal liability with respect to any such plan, or received notice of any claim or demand for withdrawal liability or partial withdrawal liability from any such plan, and, to the knowledge of any Loan Party, no condition has occurred within the last five years which, if continued, could reasonably be expected to result in a withdrawal or partial withdrawal from any such plan; and (iii) neither any Borrower nor any other member of the Controlled Group has received any notice that any Multiemployer Pension Plan is in reorganization, that increased contributions may be required to avoid a reduction in plan benefits or the imposition of any excise tax, that any such plan is or has within the last five years been funded at a rate less than that required under Section 412 of the Code, that any such plan is or reasonably likely to be terminated, or that any such plan is or reasonably likely to become insolvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.10 <u>Investment Company Act</u>. No Loan Party is an "investment company" or a company "controlled" by an "investment company" or a "subsidiary" of an "investment company," within the meaning of the Investment Company Act of 1940.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.11 <u>Compliance with Laws</u>. Each of the Loan Parties and their Subsidiaries is in compliance in all respects with the requirements of all applicable laws and all orders, writs, injunctions, and decrees applicable to it or to its properties, except where (a) that requirement of law or order, writ, injunction, or decree is being contested in good faith by appropriate proceedings diligently conducted, or (b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.12 <u>Regulation</u><u> </u><u>U</u>. No Borrower is engaged principally, or as one of its important activities, in the business of extending credit for the purpose of purchasing or carrying Margin Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.13 <u>Taxes</u>. Each of the Loan Parties and their Subsidiaries has timely filed all material tax returns and reports required by law to have been filed by it and has paid all material Taxes and governmental charges due and payable with respect to each such return, except any such Taxes or charges that (a) are not delinquent, (b) remain payable without penalty or interest, or (c) are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance with GAAP have been set aside on that Loan Party's or that Subsidiary's books. Except as set forth on <u>Schedule</u><u> </u><u>9.13</u>, no Loan Party nor any Subsidiary is currently subject to any tax audit by any federal, state, or local governmental authority or been the subject of any written claim by any federal, state, or local governmental authority regarding additional taxes owing in any taxable year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.14 <u>Solvency, etc</u>. (a) On the Closing Date, immediately after giving effect to the Related Transactions, the funding of the Loans on the Closing Date, and the use of the proceeds thereof, and (b) following the Closing Date, immediately prior to and after giving effect to each borrowing under this Agreement and the use of the proceeds thereof, in each case, with respect to the Loan Parties taken as a whole, (i) the fair value of their assets is greater than the amount of their liabilities (including disputed, contingent and unliquidated liabilities) as that value is established and liabilities evaluated in accordance with GAAP; (ii) the present fair saleable value of their assets is not less than the amount that will be required to pay the probable liability on their debts as they become absolute and matured; (iii) they are able to realize upon their assets and pay their debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business; (iv) they do not intend to, and they do not believe that they will, incur debts or liabilities beyond their ability to pay as those debts and liabilities mature; and (v) they are not engaged in or about to engage in business or a transaction for which their property would constitute unreasonably small capital.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.15 <u>Environmental Matters</u>. The on-going operations of each of the Loan Parties and their Subsidiaries comply in all respects with all Environmental Laws, except for non-compliance that could not (if enforced in accordance with applicable law) reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. Each of the Loan Parties and their Subsidiaries has obtained, and maintained in good standing, all licenses, permits, authorizations, registrations, and other approvals required under any Environmental Law and required for their respective ordinary course operations, and for their reasonably anticipated future operations, and each of the Loan Parties and their Subsidiaries is in compliance with all terms and conditions thereof, except where the failure to obtain, maintain or comply with such licenses, permits, authorizations, registrations, and other approvals could not reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. None of the Loan Parties and their Subsidiaries, and none of the properties currently owned or leased by the Loan Parties and their Subsidiaries or their respective operations, is subject to, and none of the Loan Parties and their Subsidiaries have knowledge of, (a) any written order from or agreement with any federal, state, or local environmental governmental authority, or (b) any judicial or docketed administrative or other proceeding respecting any Environmental Law, Environmental Claim, or release of Hazardous Substance that could reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. There are no releases of Hazardous Substances existing with respect to any real property owned or leased by the Loan Parties and their Subsidiaries, arising from the Loan Parties' and their Subsidiaries' operations prior to the Closing Date, or relating to any waste disposal of any Loan Party or any Subsidiary that, in each case, would result in liability to such parties that could reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect. None of the Loan Parties and their Subsidiaries has any underground storage tanks that are currently operating on the real property owned or leased by the Loan Parties or their Subsidiaries that are not registered or permitted as required under applicable Environmental Laws or that at any time have released, leaked, or otherwise discharged Hazardous Substances that could reasonably be expected to result, either individually or in the aggregate, in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.16 <u>Insurance</u>. Set forth on <u>Schedule</u><u> </u><u>9.16</u> is a complete and accurate summary of the property and casualty insurance program of the Loan Parties and their Subsidiaries as of the Closing Date (including the names of all insurers, policy numbers, expiration dates, amounts and types of coverage, annual premiums, exclusions, deductibles, and self-insured retention). Each of the Loan Parties and their Subsidiaries and their respective properties are insured with what are reasonably believed by Borrowers to be financially sound and reputable insurance companies that are not Affiliates of the Loan Parties, in such amounts, with such deductibles, and covering such risks as are customarily carried by companies of similar size, engaged in similar businesses, and owning similar properties in localities where the Loan Parties and their Subsidiaries operate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.17 <u>Real Property</u>. Set forth on <u>Schedule</u><u> </u><u>9.17</u> is a complete and accurate list, as of the Closing Date, of the address of all real property owned or leased by any of the Loan Parties and their Subsidiaries, together with, in the case of leased property, the name and mailing address of the lessor of that property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.18 <u>Information</u>. All information (other than forward-looking information, pro forma financial statements, projections, and information of a general economic or industry-specific nature) heretofore or contemporaneously with this Agreement furnished in writing by any of the Loan Parties and their Subsidiaries to Administrative Agent or any Lender for purposes of or in connection with this Agreement and the transactions contemplated by this Agreement is, and all written information hereafter furnished by or on behalf of any of the Loan Parties and their Subsidiaries to Administrative Agent or any Lender pursuant to or in connection with this Agreement will be, when taken as a whole and as supplemented from time to time as permitted or required pursuant to the terms of this Agreement, true and accurate in every material respect on the date as of which that information is dated or certified, and none of that information is or will be, when taken as a whole and as supplemented from time to time as permitted or required pursuant to the terms of this Agreement, incomplete by omitting to state any material fact necessary to make that information not materially misleading in light of the circumstances under which made (it being recognized by Administrative Agent and the Lenders that (i) any projections and forecasts provided by Borrowers are based on good faith estimates and assumptions believed by Borrowers to be reasonable as of the date of the applicable projections or assumptions and that actual results during the period or periods covered by any such projections and forecasts may differ materially from projected or forecasted results, and (ii) no such supplementation shall cure any breach of this representation for any purpose under this Agreement (including for purposes of <u>Section</u><u> </u><u>13.1.6</u>) if the original information, taken as a whole, was materially inaccurate or materially misleading at the time delivered).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.19 <u>Location of Bank Accounts</u>. <u>Schedule 9.19</u> sets forth a complete and accurate list as of the Closing Date of all deposit, checking, and other bank accounts, all securities and other accounts maintained with any broker dealer or other securities intermediary, and all other similar accounts maintained by each Loan Party, together with a description thereof (including the bank, broker dealer, or securities intermediary at which each such account is maintained and the account number and the purpose thereof).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.20 <u>Burdensome Obligations</u>. None of the Loan Parties and their Subsidiaries is a party to any agreement or contract or subject to any restriction contained in its organizational documents or its governing documents that could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.21 <u>Intellectual Property</u>. Except as set forth on <u>Schedule 9.21</u>, each of the Loan Parties and their Subsidiaries owns or licenses or otherwise has the right to use all patents, patent applications, trademark and service mark registrations, trademark and service mark applications, trade names, copyright registrations, copyright applications, and other intellectual property rights that are material to or necessary for the operation of its business, without infringement upon or conflict with the rights of any other Person with respect thereto, except for any infringements and conflicts that, individually or in the aggregate, could not reasonably be expected to have a Material Adverse Effect. Set forth on <u>Schedule 9.21</u> is a complete and accurate list as of the Closing Date of all patents, patent applications, trademark and service mark registrations, trademark and service mark applications, copyright registrations, and copyright applications owned by the Loan Parties and their Subsidiaries. To each Loan Party's knowledge, no slogan or other advertising device, product, process, or method used by any of the Loan Parties and their Subsidiaries infringes upon or conflicts with any rights owned by any other Person, and no claim or litigation regarding any of the foregoing is pending or threatened, except for any infringements and conflicts that could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.22 <u>Material Contracts; Material Operational Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Set forth on <u>Schedule 9.22</u> is a complete and accurate list as of the Closing Date of all Material Contracts of each of the Loan Parties and their Subsidiaries, showing the parties and subject matter thereof and amendments and modifications thereto. Each such Material Contract (i) is in full force and effect and is binding upon and enforceable against each of the Loan Parties and their Subsidiaries that is a party thereto and, to each Loan Party's knowledge, all other parties thereto in accordance with its terms, subject to bankruptcy, insolvency, and similar laws affecting the enforceability of creditors' rights generally and to general principles of equity; (ii) except as set forth on <u>Schedule 9.22</u>, has not been otherwise amended or modified; (iii) is not in default due to the action of any of the Loan Parties and their Subsidiaries or, to the knowledge of any Loan Party, any other party thereto; and (iv) except as set forth on <u>Schedule 9.22</u>, is not subject to any prohibition or restriction on the contribution, assignment, or other transfer thereof by the Company to a Wholly-Owned Subsidiary of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Set forth on <u>Schedule 9.22</u> is a complete and accurate list as of the Closing Date of all Material Operational Assets held by the Company as of the Closing Date that are subject to any prohibition or restriction on the contribution, assignment, or other transfer thereof by the Company to a Wholly-Owned Subsidiary of the Company, describing in reasonable detail the nature and substance of such Material Operational Assets and such prohibition or restriction.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.23 <u>Employee and Labor Matters</u>. There is (a) no unfair labor practice complaint pending or, to the knowledge of any Loan Party, threatened in writing against any Borrower or any Subsidiary thereof before any governmental authority and no grievance or arbitration proceeding pending or threatened against any of the Borrowers and their Subsidiaries that arises out of or under any collective bargaining agreement, except for any such complaints or proceedings that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; (b) no strike, labor dispute, slowdown, stoppage or similar action or grievance pending or threatened in writing against any of the Borrowers and their Subsidiaries, except for any such actions that could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect; or (c) to the knowledge of each Loan Party, no union representation question existing with respect to the employees of any of the Loan Parties and their Subsidiaries and no union organizing activity taking place with respect to any of the employees of any of the Borrowers and their Subsidiaries. None of the Loan Parties and their Subsidiaries has incurred any liability or obligation under the Worker Adjustment and Retraining Notification Act ("<u>WARN</u>") or similar state law that remains unpaid or unsatisfied in an aggregate amount in excess of $250,000. The hours worked and payments made to employees of each of the Borrowers and their Subsidiaries have not been in violation of the Fair Labor Standards Act or any other applicable legal requirements, except to the extent any such violations could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect. All material payments due from any of the Borrowers and their Subsidiaries on account of wages and employee health and welfare insurance and other benefits have been paid or accrued as a liability on the books of that Borrower or that Subsidiary, except where the failure to do so could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.24 <u>No Bankruptcy Filing</u>. None of the Loan Parties and their Subsidiaries is contemplating either an Insolvency Proceeding or the liquidation of all or a major portion of that Loan Party's or that Subsidiary's assets or property, and no Loan Party has any knowledge of any Person contemplating an Insolvency Proceeding against any of the Loan Parties and their Subsidiaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.25 <u>Name; Jurisdiction of Organization; Organizational ID Number; Chief Place of Business; Chief Executive Office; FEIN</u>. <u>Schedule 9.25</u> sets forth a complete and accurate list as of the Closing Date of (a) the exact legal name of each of the Loan Parties and their Subsidiaries; (b) the jurisdiction of organization of each of the Loan Parties and their Subsidiaries; (c) the organizational identification number of each Loan Party (or indicates that that Loan Party has no organizational identification number); (d) each place of business of each of the Loan Parties and their Subsidiaries; (e) the chief executive office of each of the Loan Parties and their Subsidiaries; and (f) the federal employer identification number of each Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.26 <u>Locations of Collateral</u>. There is no location at which any Loan Party has any Collateral with a fair market value in excess of $250,000 (except for inventory in transit in the ordinary course of business) other than those locations listed on <u>Schedule 9.26</u>. <u>Schedule</u><u> </u><u>9.26</u> contains a true, correct, and complete list, as of the Closing Date, of the names and addresses of each warehouse at which such Collateral of each Loan Party is stored. None of the receipts received by any Loan Party from any warehouse states that the goods covered thereby are to be delivered to bearer or to the order of a named Person or to a named Person and that named Person's assigns.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.27 <u>Security Interests</u>. The Guaranty and Collateral Agreement creates in favor of Administrative Agent, for the benefit of Administrative Agent and the Lenders, a legal, valid, and enforceable security interest in the Collateral. Upon the filing of the UCC-1 financing statements described in <u>Section</u><u> </u><u>12.1.16</u>, the registration of financing statements under the applicable Personal Property Security Act (Canada) with respect to each Canadian Borrower, and the recording of the collateral assignments referred to in the Guaranty and Collateral Agreement in the United States Patent and Trademark Office and the United States Copyright Office, as applicable, the security interests in and Liens on the Collateral granted under the Guaranty and Collateral Agreement will be perfected, first-priority security interests, and no further recordings or filings are or will be required in connection with the creation, perfection, or enforcement of those security interests and Liens, other than (a) the filing of continuation statements and renewal statements in accordance with applicable law; (b) the recording of the collateral assignments referred to in the Guaranty and Collateral Agreement in the United States Patent and Trademark Office and the United States Copyright Office, as applicable, with respect to after-acquired U.S. patent and trademark applications and registrations and U.S. copyrights; and (c) such additional filings under the applicable Personal Property Security Act (Canada) as may be required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.28 <u>No Default</u>. No Default or Event of Default exists or would result from the incurrence by any Loan Party of any Debt under this Agreement or under any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.29 <u>Hedging Agreements</u>. None of the Loan Parties and their Subsidiaries is a party to, nor will it be a party to, any Hedging Agreement other than a bona fide (not speculative) unsecured Hedging Agreement, in form and substance reasonably acceptable to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.30 <u>OFAC</u>. Each of the Borrowers and their Subsidiaries is and will remain in compliance with all U.S. economic sanctions laws, Executive Orders and implementing regulations as promulgated by the U.S. Treasury Department's Office of Foreign Assets Control ("<u>OFAC</u>"), and all applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy Act and all regulations issued pursuant to it. None of the Borrowers and their Subsidiaries and Affiliates is (a) a Person designated by the U.S. government on the list of the Specially Designated Nationals and Blocked Persons (the "<u>SDN List</u>") with which a U.S. Person cannot deal with or otherwise engage in business transactions; (b) a Person who is otherwise the target of U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in business transactions with that Person; or (c) controlled by (including, without limitation ,by virtue of that Person being a director or owning voting shares or interests), or acts, directly or indirectly, for or on behalf of, any Person on the SDN List or a foreign government that is the target of U.S. economic sanctions prohibitions such that the entry into, or performance under, this Agreement or any other Loan Document would be prohibited under U.S. law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.31 <u>Patriot Act</u>. Each of the Borrowers and their Subsidiaries and Affiliates are in compliance with (a) the Trading with the Enemy Act, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B Chapter V, as amended) and any other enabling legislation or executive order relating thereto; (b) the Patriot Act; and (c) other federal or state laws relating to "*know your customer*" and anti-money laundering rules and regulations. No part of the proceeds of any Loan will be used directly or indirectly for any payments to any government official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices Act of 1977.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.32 <u>Related Agreements</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Loan Parties have furnished Administrative Agent true and correct copies of the Related Agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Loan Parties have duly taken all necessary company action to authorize the execution, delivery, and performance of the Related Agreements and the consummation of the Related Transactions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Related Transactions will comply in all material respects with all applicable legal requirements, and all necessary governmental, regulatory, creditor, shareholder, partner, and other material consents, approvals, and exemptions required to be obtained by the Loan Parties and, to each Loan Party's knowledge, each other party to the Related Agreements in connection with the Related Transactions will be, prior to consummation of the Related Transactions, duly obtained and will be in full force and effect. As of the date of the Related Agreements, all applicable waiting periods with respect to the Related Transactions will have expired without any action being taken by any competent governmental authority which restrains, prevents or imposes material adverse conditions upon the consummation of the Related Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The execution and delivery of the Related Agreements did not, and the consummation of the Related Transactions will not, violate in any material respect any statute or regulation of the United States (including any securities law) or of any state or other applicable jurisdiction, or any order, judgment, or decree of any court or governmental body binding on any Loan Party or, to any Borrower's knowledge, any other party to the Related Agreements, or result in a breach of, or constitute a default under, any material agreement, indenture, instrument, or other document, or any judgment, order, or decree, to which any Loan Party is a party or by which any Loan Party is bound or, to any Borrower's knowledge, to which any other party to the Related Agreements is a party or by which any such party is bound, other than any such breaches or defaults which could not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) As of the Closing Date, no statement or representation made in the Related Agreements by any Loan Party or, to any Borrower's knowledge, any other Person, contains any untrue statement of a material fact or omits to state any material fact required to be stated therein or necessary in order to make the statements made therein, in light of the circumstances under which they are made, not misleading in any material respect as of the time such statement or representation was or is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.33 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.34 <u>Customers and Suppliers</u>. There exists no actual or threatened (in writing) termination, cancellation, or limitation of, or modification to or change in, the business relationship between (a) any of the Loan Parties and their Subsidiaries, on the one hand, and any customer or any group thereof, on the other hand, whose agreements with any of the Loan Parties and their Subsidiaries are individually or in the aggregate material to the business or operations of any of the Loan Parties and their Subsidiaries; or (b) any of the Loan Parties and their Subsidiaries, on the one hand, and any supplier or any group thereof, on the other hand, whose agreements with any of the Loan Parties and their Subsidiaries are individually or in the aggregate material to the business or operations of any of the Loan Parties and their Subsidiaries. To the Loan Parties' knowledge there exists no present state of facts or circumstances that could reasonably be expected to give rise to or result in any such termination, cancellation, limitation, modification or change.

SECTION 10 AFFIRMATIVE COVENANTS.

Until Payment in Full, each Borrower shall, unless at any time Administrative Agent and the Required Lenders otherwise expressly consent in writing, do the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1 <u>Reports, Certificates and Other Information</u>. Furnish or cause Borrower Representative to furnish to Administrative Agent and each Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.1 <u>Annual Report</u>. Promptly when available and in any event within 90 days after the close of each Fiscal Year: (a) a copy of the annual audit report of the Company and its Subsidiaries for that Fiscal Year, including consolidated balance sheets and statements of earnings and cash flows of the Company and its Subsidiaries as at the end of that Fiscal Year, certified without adverse reference to going concern value and without qualification (except for qualifications relating to changes in accounting principles or practices reflecting changes in GAAP and required or approved by the Company's independent certified public accountants) by independent auditors of recognized standing selected by the Company and reasonably acceptable to Administrative Agent, together with a comparison with the budget for that Fiscal Year and a comparison with the previous Fiscal Year; and (b) a balance sheet of the Company and its Subsidiaries as of the end of that Fiscal Year and statement of earnings and cash flows for the Company and its Subsidiaries for that Fiscal Year, certified by a Senior Officer of Borrower Representative.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.2 <u>Interim Reports</u>. Promptly when available and in any event within 30 days after the end of each month (commencing with the months ended March 31, 2026, and April 30, 2026, which shall be due not later than 30 days after the end of April 2026), consolidated balance sheets of the Company and its Subsidiaries as of the end of that month, together with consolidated statements of earnings and a consolidated statement of cash flows for that month and for the period beginning with the first day of that Fiscal Year and ending on the last day of that month, together with a comparison with the corresponding period of the previous Fiscal Year and a comparison with the budget for that period of the current Fiscal Year, together with a management discussion and analysis, all certified by a Senior Officer of Borrower Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.3 <u>Compliance Certificates</u>. Contemporaneously with the furnishing of a copy of each annual audit report pursuant to <u>Section 10.1.1</u> and each set of monthly statements pursuant to <u>Section 10.1.2</u> with respect any month that is the last month of a Fiscal Quarter, a duly completed compliance certificate in the form of Exhibit B, with appropriate insertions, dated the date of that annual report or those statements and signed by a Senior Officer of Borrower Representative, containing (a) a computation of each of the financial ratios and restrictions set forth in <u>Section</u><u> </u><u>11.12</u>; (b) a certification to the effect that that Senior Officer has not become aware of any Default or Event of Default that has occurred and is continuing or, if there is any such event, describing it and the steps, if any, being taken to cure it; and (c) a written statement of the Company's management setting forth a discussion of the Company's and its Subsidiaries' financial condition, changes in financial condition, and results of operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.4 <u>Reports to the SEC and to Shareholders</u>. Promptly upon the filing or sending thereof, copies of all regular, periodic, or special reports of any Loan Party filed with the SEC; copies of all registration statements of any Loan Party filed with the SEC (other than on Form S-8); and copies of all proxy statements or other communications made to security holders generally.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.5 <u>Notice of Default, Litigation, and ERISA Matters</u>. Promptly upon becoming aware of any of the following, written notice describing the same and the steps being taken by the Loan Parties and their Subsidiaries affected thereby with respect thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the occurrence of a Default or an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the commencement of, or any material development in, any litigation or proceeding affecting any of the Loan Parties and their Subsidiaries or their respective property (i) in which the amount of damages claimed is $500,000 (or its equivalent in another currency or currencies) or more in the aggregate for all such litigations or proceedings; (ii) in which the relief sought is an injunction or other stay of the performance of this Agreement or any other Loan Document; or (iii) which, if adversely determined, could reasonably be expected to have a Material Adverse Effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) the institution of any steps by any member of the Controlled Group or any other Person to terminate any Pension Plan that could reasonably be expected to result in material liability to any of the Borrowers and their Subsidiaries; (ii) the failure of any member of the Controlled Group to make a required contribution to any Pension Plan (if that failure is sufficient to give rise to a Lien under Section 303(k) of ERISA) or to any Multiemployer Pension Plan that could reasonably be expected to result in material liability to any of the Borrowers and their Subsidiaries; (iii) the taking of any action with respect to a Pension Plan that could result in the requirement that any Loan Party furnish a bond or other security to the PBGC or that Pension Plan; (iv) the occurrence of any event with respect to any Pension Plan or Multiemployer Pension Plan that could result in the incurrence by any member of the Controlled Group of any material liability, fine, or penalty (including any claim or demand for withdrawal liability or partial withdrawal from any Multiemployer Pension Plan); (v) any material increase in the contingent liability of any Loan Party with respect to any post-retirement welfare benefit plan of any of the Loan Parties and their Subsidiaries; or (vi) with respect to any Multiemployer Pension Plan, any notice that such Multiemployer Pension Plan is in reorganization, that increased contributions may be required to avoid a reduction in plan benefits or the imposition of an excise tax, that any such plan is or has been funded at a rate less than that required under Section 412 of the Code, that any such plan is or may be terminated, or that any such plan is or may become insolvent, in each case to the extent such event could, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any cancellation or material change in any insurance maintained by any Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) [reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) (i) the institution of a federal or other material state or local tax audit in respect of any Loan Party or any Subsidiary by any federal, state, or local governmental authority or (ii) any Loan Party or any Subsidiary becoming the subject of any allegation or claim by any federal, state, or local governmental authority regarding additional material taxes owing in any taxable year; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any other event (including (i) any violation of any applicable Environmental Law or the assertion of any Environmental Claim, or (ii) the enactment or effectiveness of any law, rule, or regulation) that could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.6 <u>Real Estate</u>. Promptly upon any of the Loan Parties and their Subsidiaries acquiring or leasing any real property after the Closing Date, an updated version of Schedule 9.17 showing information as of the date of delivery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.7 <u>Management Reports</u>. Promptly upon receipt thereof, copies of all detailed financial and management reports submitted to any Borrower by independent auditors in connection with each annual or interim audit made by those auditors of the books of any Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.8 <u>Projections</u>. As soon as practicable, and in any event not later than 30 days after the commencement of each Fiscal Year, financial projections for the Company and its Subsidiaries for that Fiscal Year (including monthly operating and cash flow budgets and a capital expenditures budget) prepared in a manner consistent with the projections delivered by Borrower Representative to Administrative Agent prior to the Closing Date or otherwise in a manner reasonably satisfactory to Administrative Agent, accompanied by a certificate of a Senior Officer of Borrower Representative to the effect that (a) the projections were prepared by the Company in good faith; (b) the Company has a reasonable basis for the assumptions contained in the projections, as of the date of delivery; and (c) the projections have been prepared in accordance with those assumptions (it being recognized by Administrative Agent and the Lenders that any projections and forecasts provided by any Borrower are based on good-faith estimates and assumptions believed by such Borrower to be reasonable as of the date of the applicable projections or assumptions and that actual results during the period or periods covered by any such projections and forecasts may differ materially from projected or forecasted results).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.9 <u>Material Contract Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Promptly following receipt, copies of any material notices (including notices of default) received in connection with any Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Promptly after entering into any Material Contract or any renewal or modification of any Material Contract, copies of such Material Contract or applicable renewal or modification documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.10 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.1.11 <u>Other Information</u>. Promptly from time to time, all other information (including, without limitation, business or financial data, reports, appraisals and projections) concerning any of the Loan Parties and their Subsidiaries or their respective properties or business as any Lender or Administrative Agent reasonably requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.2 <u>Books, Records, and Inspections</u>. Keep, and cause each of the Loan Parties and their Subsidiaries to keep, its books and records in accordance with sound business practices sufficient to allow the preparation of financial statements in accordance with GAAP; permit, and cause each other Loan Party and each Subsidiary of each Loan Party to permit, at any reasonable time during normal business hours and with reasonable notice (or at any time without notice if an Event of Default exists), Administrative Agent (accompanied by any Lender at such Lender's sole cost and expense) or any representative, agent, or advisor thereof to (i) inspect the properties and operations of the Loan Parties and their Subsidiaries; (ii) visit any or all of its offices and/or locations, to discuss its financial matters with its officers, directors, managers and/or its independent auditors (and each Borrower hereby authorizes all such independent auditors to discuss those financial matters with any Lender or Administrative Agent or any representative, agent, or advisor thereof; *provided*, that the Company shall be afforded a reasonable opportunity to be present at any meeting between Administrative Agent or any Lender and the Company's independent auditors); (iii) examine (and photocopy extracts from) any of its books or other records; (iv) inspect the inventory and other tangible assets of the Loan Parties and their Subsidiaries; (v) perform appraisals of the equipment of the Loan Parties and their Subsidiaries; and (vi) inspect, audit, conduct physical counts and perform valuations thereof, and to audit, check and make copies of and extracts from the books, records, computer data, computer programs, journals, orders, receipts, correspondence and other data relating to inventory, accounts, and any other Collateral; *provided*, that so long as no Event of Default exists, the Loan Parties shall only be responsible for the expenses related to one such visit, inspection, examination, or appraisal per Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.3 <u>Maintenance of Property; Insurance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Keep, and cause each of the Loan Parties and their Subsidiaries to keep, all property useful and necessary in the business of the Loan Parties and their Subsidiaries in good working order and condition, ordinary wear and tear and casualty damage excepted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Maintain, and cause each of the Loan Parties and their Subsidiaries to maintain, with responsible insurance companies, all insurance coverage as may be required by any law or governmental regulation or court decree or order applicable to it, general liability insurance and business interruption insurance in such amounts and duration, and with such deductibles, as are reasonably acceptable to Administrative Agent (it being agreed that the insurance coverage, including the amounts, the duration and the deductibles, in existence on the Closing Date is acceptable), and all other insurance, to such extent, with such insurance companies, and against such hazards and liabilities, as is customarily maintained by companies similarly situated, but which must insure against all risks and liabilities of the type identified on <u>Schedule</u><u> </u><u>9.16</u> as of the Closing Date and must have insured amounts no less than, and deductibles no higher than, those set forth on that schedule, all in form and substance acceptable to Administrative Agent in its reasonable determination; and, upon request of Administrative Agent or any Lender, furnish to Administrative Agent or that Lender original or electronic copies of policies evidencing that insurance and a certificate setting forth in reasonable detail the nature and extent of all insurance maintained by the Loan Parties and their Subsidiaries. Borrowers shall cause each issuer of an insurance policy in respect of any Loan Party to provide Administrative Agent with an endorsement (i) showing Administrative Agent as lender's loss payee with respect to each policy of property, casualty or business interruption insurance and naming Administrative Agent as an additional insured with respect to each policy of liability insurance; (ii) providing that 30 days' notice (10 days' in the case of cancellation due to non-payment of premium) will be given to Administrative Agent prior to any cancellation of, non-renewal of, material reduction or change in coverage provided by or other material modification to that policy; and (iii) reasonably acceptable in all other respects to Administrative Agent. Each Loan Party shall execute and deliver to Administrative Agent a collateral assignment, in form and substance reasonably satisfactory to Administrative Agent, of each business interruption insurance policy maintained by that Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) **If Borrowers fail to obtain, or to provide Administrative Agent with evidence of, the insurance coverage required by this Agreement, Administrative Agent may purchase insurance at Borrowers**' **expense, after written notice to Borrower Representative, to protect Administrative Agent**'**s and the Lenders**' **interests in the Collateral. This insurance may, but need not, protect any Loan Party**'**s interests. The coverage that Administrative Agent purchases might not pay any claim that is made against any Loan Party in connection with the Collateral. Borrowers may later cancel any insurance purchased by Administrative Agent, but only after providing Administrative Agent with evidence that Borrowers have obtained insurance as required by this Agreement. If Administrative Agent purchases insurance for the Collateral, Borrowers will be responsible for the costs of that insurance, including interest and any other charges that might be imposed with the placement of the insurance, until the effective date of the cancellation or expiration of the insurance. The costs of the insurance may be added to the principal amount of the Loans owing under this Agreement. The costs of the insurance may be more than the cost of the insurance the Loan Parties might be able to obtain on their own.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.4 <u>Compliance with Laws; Payment of Taxes and Liabilities</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Comply, and cause each of the Loan Parties and their Subsidiaries to comply, in all respects with all applicable laws, rules, regulations, decrees, orders, judgments, licenses, and permits, except where failure to comply could not reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting <u>Section</u><u> </u><u>10.4(a)</u>, ensure, and cause each of the Loan Parties and their Subsidiaries to ensure, that no Person who owns a controlling interest in or otherwise controls any of the Loan Parties and their Subsidiaries is (i) listed on the SDN List maintained by OFAC and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order, or regulation; or (ii) a Person designated under Section 1(b), (c), or (d) of Executive Order No. 13224 (September 23, 2001), any related enabling legislation, or any other similar Executive Orders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Without limiting <u>Section</u><u> </u><u>10.4(a)</u>, comply, and cause each of the Loan Parties and their Subsidiaries to comply, with all applicable Bank Secrecy Act and anti-money laundering laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Pay, and cause each of the Loan Parties and their Subsidiaries to pay, prior to delinquency, all federal and state income taxes and all other material taxes and other governmental charges against it or any of its property, as well as claims of any kind which, if unpaid, could become a Lien on any of its property, but none of the Loan Parties and their Subsidiaries will be required under this <u>Section</u><u> </u><u>10.4(d)</u> to pay any such tax or charge so long as that Loan Party or that Subsidiary is contesting the validity thereof in good faith by appropriate proceedings and has set aside on its books adequate reserves with respect thereto in accordance with GAAP, and, in the case of a claim that could become a Lien on any Collateral, those contest proceedings stay the foreclosure of that Lien or the sale of any material portion of the Collateral to satisfy that claim.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.5 <u>Maintenance of Existence, etc</u>.Maintain and preserve, and (subject to <u>Section</u><u> </u><u>11.4</u>) cause each of the Loan Parties and their Subsidiaries to maintain and preserve, (a) its existence and good standing in the jurisdiction of its organization and (b) its qualification to do business and good standing in each jurisdiction where the nature of its business makes that qualification necessary (other than any such jurisdictions in which the failure to be qualified or in good standing could not reasonably be expected to have a Material Adverse Effect).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.6 <u>Use of Proceeds</u>. Use the proceeds of the Loans (other than the Interest Line Loans) solely to effect a portion of the Related Transactions (including to discharge the Debt to be Discharged), for working capital purposes, and for other general business purposes; use the proceeds of the Interest Line Loans solely to pay accrued interest on the Loans on an applicable interest payment date pursuant to <u>Section</u><u> </u><u>4.1.5</u>; and not use or permit any proceeds of any Loan to be used, either directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of "purchasing or carrying" any Margin Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.7 <u>Employee Benefit Plans</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Maintain, and cause each Borrower, Subsidiary, and/or, on a commercially-reasonable basis, each other member of the Controlled Group thereof to maintain, each Pension Plan in compliance with all applicable requirements of law and regulations, other than such failures in compliance which could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Make, and cause each Borrower, Subsidiary, and/or, on a commercially-reasonable basis, each other member of the Controlled Group thereof to make, on a timely basis, all required contributions to any Multiemployer Pension Plan, other than such untimely contributions which could not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Not, and not permit any Borrower, Subsidiary, and/or, on a commercially-reasonable basis, each other member of the Controlled Group thereof to, (i) seek a waiver of the minimum funding standards of ERISA, or (ii) take any other action with respect to any Pension Plan that could reasonably be expected to entitle the PBGC to terminate, impose liability in respect of, or cause a trustee to be appointed to administer, any Pension Plan, unless the actions or events described in <u>clauses</u><u> </u><u>(i)</u> and <u>(ii)</u> could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.8 <u>Environmental Matters</u>. If any release or threatened release or other disposal of Hazardous Substances occurs on any real property owned or leased by any of the Loan Parties and their Subsidiaries, then Borrowers shall, or shall cause the applicable Loan Party or the applicable Subsidiary of a Loan Party to, cause the prompt containment and removal of those Hazardous Substances and the remediation of that real property as required by and as necessary to comply with all applicable Environmental Laws. Without limiting the generality of the foregoing, Borrowers shall, and shall cause the Loan Parties and their Subsidiaries to, comply with any applicable federal or state judicial or administrative order requiring the performance at any real property of any of the Loan Parties and their Subsidiaries of activities in response to the release or threatened release of a Hazardous Substance. Borrowers shall, and shall cause their Subsidiaries to, dispose of all Hazardous Substances, or of any other wastes, only at licensed disposal facilities operating in compliance in all material respects with applicable Environmental Laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.9 <u>Further Assurances</u>. Take, and cause each other Loan Party to take, all actions as are necessary or as Administrative Agent or the Required Lenders reasonably request from time to time to ensure that the Obligations of each Loan Party under the Loan Documents are secured by a first-priority perfected Lien in favor of Administrative Agent (subject to Permitted Liens) on substantially all of the assets (other than any Excluded Property (as such term is defined in the Guaranty and Collateral Agreement) of each Loan Party (as well as all Equity Interests of each Borrower, each Domestic Subsidiary, and each Foreign Subsidiary, except that no more than 65% of all Equity Interests of (a) each direct Foreign Subsidiary (other than TGAL), and (b) each Domestic Foreign Holding Company will be required to be pledged) and guaranteed by each Loan Party (including, immediately upon the acquisition or creation thereof (or any longer period Administrative Agent agrees to in its sole discretion), any Subsidiary acquired or created after the Closing Date, but excluding each direct Foreign Subsidiary and each Domestic Foreign Holding Company until the holding period requirements for the U.S. owner of such Foreign Subsidiary or a Domestic Foreign Holding Company to qualify for participation deductions pursuant to Section 245A of the Code are satisfied), in each case to the extent determined by Administrative Agent, in its reasonable discretion, not to be prohibited by applicable law and as Administrative Agent reasonably determines, including (i) the execution and delivery of guaranties, security agreements, pledge agreements, mortgages (excluding leasehold mortgages), deeds of trust (excluding leasehold deeds of trust), financing statements, opinions of counsel, and other documents, in each case in form and substance reasonably satisfactory to Administrative Agent, and the filing or recording of any of the foregoing; (ii) the delivery of certificated securities and other Collateral with respect to which perfection is obtained by possession; and (iii) with respect to any real property acquired by any Loan Party after the Closing Date with a fair market value in excess of $500,000, the delivery (to the extent requested by Administrative Agent) within 30 days after the date that real property was acquired (if requested by Administrative Agent before the date that real property was acquired) or within 30 days after Administrative Agent's request therefor (or any longer period Administrative Agent agrees to in its sole discretion) of a duly executed Mortgage with respect to that real property providing for a fully perfected Lien, in favor of Administrative Agent, in all right, title and interest of the applicable Loan Party in that real property, together with all Mortgage-Related Documents and a legal opinion of special counsel for the applicable Loan Party for the state in which that real property is located in form and substance reasonably acceptable to Administrative Agent. Notwithstanding any provision of this Agreement to the contrary, in no event will more than 65% of the total combined voting power of all classes of stock of any Foreign Subsidiary (other than TGAL) or Domestic Foreign Holding Company of any Loan Party be required to be pledged to secure or otherwise indirectly secure the Obligations until the holding period requirements for the U.S. owner of such Foreign Subsidiary or a Domestic Foreign Holding Company to qualify for participation deductions pursuant to Section 245A of the Code are satisfied, and, for the avoidance of doubt, no Foreign Subsidiary or Domestic Foreign Holding Company will be required to be a guarantor of any Obligations unless specifically agreed to by Borrowers.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.10 <u>Deposit Accounts</u>. Subject to <u>Section</u><u> </u><u>10.13</u>, unless Administrative Agent otherwise consents in writing, maintain, and cause each other Loan Party to maintain, all of their deposit accounts and securities accounts, other than Excluded Deposit Accounts, with an institution that has entered into one or more Control Agreements with Administrative Agent and the applicable Loan Party granting "control" (as defined in the UCC) of each applicable account to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.11 <u>Board Observation Rights</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) For so long as any Commitment or any Loan remains outstanding, Administrative Agent shall have the right to appoint up to two representatives (in the aggregate) to exercise the rights as conferred pursuant to this <u>Section</u><u> </u><u>10.11</u> (such representatives being referred to collectively as the "<u>Observation Party</u>").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The boards of directors, boards of managers or similar governing bodies of each of the Loan Parties shall hold general meetings at least four times in each calendar year for the purpose of discussing the business and operations of such Loan Parties, as applicable, and their respective Subsidiaries. At least one such meeting each calendar year shall be held in person. Each Loan Party shall notify the Observation Party of the date and time for each general or special meeting of its board of directors, board of managers or similar governing body (or any committee thereof) or of any executive session or of the adoption of any resolutions by any such body or committee by written consent (describing in reasonable detail the nature and substance of such action) at the time notice is provided to the outside directors, managers or executives of such Loan Party, and concurrently deliver to the Observation Party any materials delivered to directors, managers or executives of such Loan Party, including a draft of any resolutions proposed to be adopted by written consent; *provided*, that notwithstanding any contrary provision of this <u>Section</u><u> </u><u>10.11</u>, no Loan Party shall be obligated to provide any such materials to the Observation Party where and to the extent that (i) upon the advice of legal counsel to the Loan Parties, such withholding is necessary to preserve attorney-client privilege or (ii) upon the advice of legal counsel to the Loan Parties, such materials relate to or reveal an actual conflict of interest between any such Loan Party and the Administrative Agent or any Lender; *provided*, that the foregoing <u>clause (ii)</u> shall not apply to any materials or portions of any meeting that relate to compliance with, or performance under, this Agreement or any other Loan Document, any Default or Event of Default, or the financial condition of any Loan Party; *provided*, *further*, that in the event the Loan Parties invoke the exclusion in <u>clause</u><u> </u><u>(ii)</u> above, the Loan Parties shall promptly notify Administrative Agent in writing that such exclusion has been invoked.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Observation Party shall be entitled to, or to select one representative to, attend and participate (but not vote) in all meetings of the board of directors, board of managers or other governing body (including any committee thereof) or any executive session of each of the Loan Parties, including telephonic meetings. The Observation Party (or its representative) shall be entitled to receive all written materials and other information given to the participants in such meetings. Notwithstanding any contrary provision of this <u>Section</u><u> </u><u>10.11</u>, the Loan Parties shall be entitled to recuse the Observation Party from portions of any meeting and to redact portions of any written materials required to be delivered to the Observation Party where and to the extent that (i) upon the advice of legal counsel to the Loan Parties, such recusal and/or redaction is necessary to preserve attorney-client privilege or (ii) upon the advice of legal counsel to the Loan Parties, such materials relate to or reveal an actual conflict of interest between any such Loan Party and the Administrative Agent or any Lender; *provided*, that the foregoing <u>clause (ii)</u> shall not apply to any materials or portions of any meeting that relate to compliance with, or performance under, this Agreement or any other Loan Document, any Default or Event of Default, or the financial condition of any Loan Party; *provided*, *further*, that in the event the Loan Parties invoke the exclusion in <u>clause</u><u> </u><u>(ii)</u> above, the Loan Parties shall promptly notify Administrative Agent in writing that such exclusion has been invoked.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Borrowers shall pay all reasonable and documented out-of-pocket expenses incurred by the Observation Party in connection with the exercise by the Observation Party of its rights under this <u>Section</u><u> </u><u>10.11</u> (including, without limitation, any such expenses incurred in connection with the Observation Party's attendance and participation in any meeting of the board of directors, board of managers or other governing body (including any committee thereof) or any executive session of each of the Loan Parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.12 <u>Material Operational Assets</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Subject to <u>Section</u><u> </u><u>10.13</u> and the other terms of this <u>Section</u><u> </u><u>10.12</u>, cause all Material Operational Assets (including any new customer or supplier agreement or other new Material Contract, in each case entered into after the Closing Date) to be held by one or more Loan Parties that are Wholly-Owned Subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to any Material Contract to which the Company is a party as of the Closing Date that is subject to any prohibition or restriction on the contribution, assignment, or other transfer thereof by the Company to a Wholly-Owned Subsidiary of the Company, (i) use commercially reasonable efforts to obtain, as soon as practicable, all consents or waivers necessary to effect the contribution, assignment, or other transfer of such Material Contract to one or more Loan Parties that are Wholly-Owned Subsidiaries of the Company, (ii) upon obtaining all such consents or waivers, contribute, assign, or otherwise transfer such Material Contract to one or more other Loan Parties that are Wholly-Owned Subsidiaries of the Company, and (iii) to the extent that all such consents or waivers have not been obtained prior to the renewal or any material modification of such Material Contract, (A) obtain all such consents or waivers in connection with the renewal or any material modification of such Material Contract and (B) contribute, assign, or otherwise transfer such Material Contract to one or more other Loan Parties that are Wholly-Owned Subsidiaries of the Company in connection with the renewal or any material modification of such Material Contract.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to any other Material Operational Assets held by the Company as of the Closing Date that are subject to any prohibition or restriction on the contribution, assignment, or other transfer thereof by the Company to a Wholly-Owned Subsidiary of the Company, (i) use commercially reasonable efforts to obtain, as soon as practicable, all consents or waivers necessary to effect the contribution, assignment, or other transfer of such Material Operational Assets to one or more Loan Parties that are Wholly-Owned Subsidiaries of the Company and (ii) upon obtaining all such consents or waivers, contribute, assign, or otherwise transfer such Material Operational Assets to one or more other Loan Parties that are Wholly-Owned Subsidiaries of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.13 <u>Post-Closing Matters</u>. Complete each of the tasks and other items set forth on <u>Schedule</u><u> </u><u>10.13</u> not later than the times specified therein or such later date as Administrative Agent may agree in writing.

SECTION 11 NEGATIVE COVENANTS

Until Payment in Full, each Borrower shall, unless at any time Administrative Agent and the Required Lenders otherwise expressly consent in writing, do the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.1 <u>Debt</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, create, incur, assume, or suffer to exist any Debt, except the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Obligations under this Agreement and the other Loan Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Debt of any of the Loan Parties and their Subsidiaries secured by Liens permitted by <u>Section</u><u> </u><u>11.2(d)</u>, and extensions, renewals, replacements, and refinancings thereof, so long as the aggregate amount of all such Debt at any time outstanding does not exceed $300,000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Debt of any Loan Party to any other Loan Party, so long as, upon the written request of Administrative Agent, (i) that Debt is evidenced by a demand note in form and substance reasonably satisfactory to Administrative Agent and pledged and delivered to Administrative Agent pursuant to the Collateral Documents as additional collateral security for the Obligations, and (ii) the obligations under that demand note are subordinated to the obligations of the Loan Parties under the Loan Documents (including the Obligations of Borrowers under this Agreement) in a manner reasonably satisfactory to Administrative Agent;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Debt arising in connection with endorsement of instruments for deposit in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Debt described on <u>Schedule</u><u> </u><u>11.1</u> and any extension, renewal, replacement or refinancing thereof so long as the principal amount thereof is not increased;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Debt to be Discharged (so long as that Debt is discharged on the Closing Date with the proceeds of the initial Loans under this Agreement);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Contingent Liabilities arising with respect to (i) customary indemnification obligations by any of the Loan Parties and their Subsidiaries in favor of purchasers in connection with dispositions permitted under <u>Section</u><u> </u><u>11.4</u>, and (ii) the guaranty by any of the Loan Parties and their Subsidiaries of a lease, sublease, license, or sublicense entered into in the ordinary course of business by another Loan Party or any Subsidiary thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Hedging Obligations for bona fide hedging purposes and not for speculation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Debt consisting of unpaid insurance premiums (not in excess of one (1) years' premiums) owing to insurance companies and insurance brokers incurred in connection with the financing of insurance premiums in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Debt in respect of netting services, overdraft protections, cash management and other like services, in each case incurred in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Contingent Obligations arising under guarantees by a Loan Party of Debt or other obligations of any other Loan Party, which Debt or other obligations are otherwise permitted hereunder; provided that if such obligation is subordinated to the Obligations, such guarantee shall be subordinated to the same extent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) other Debt in an aggregate principal amount not to exceed $250,000 at any time outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2 <u>Liens</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, create or permit to exist any Lien on any of its real or personal properties, assets, or rights of whatsoever nature (whether now owned or hereafter acquired), except the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Liens for taxes or other governmental charges not at the time delinquent or thereafter payable without penalty or being diligently contested in good faith by appropriate proceedings and, in each case, for which it maintains adequate reserves in accordance with GAAP and the execution or other enforcement of which is effectively stayed;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Liens arising in the ordinary course of business of any of the Loan Parties and their Subsidiaries (such as (i) Liens of carriers, warehousemen, landlords, mechanics and materialmen and other similar Liens imposed by law and (ii) Liens in the form of deposits or pledges incurred in connection with worker's compensation, unemployment compensation and other types of social security (excluding Liens arising under ERISA) or in connection with surety bonds, bids, performance bonds, and similar obligations) for sums not overdue or being diligently contested in good faith by appropriate proceedings and not involving any advances or borrowed money or the deferred purchase price of property or services and, in each case, for which it maintains adequate reserves in accordance with GAAP and the execution or other enforcement of which is effectively stayed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Liens described on <u>Schedule</u><u> </u><u>11.2</u> as of the Closing Date and renewals and extensions thereof on the assets currently subject to those Liens;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) subject to the limitation set forth in <u>Section</u><u> </u><u>11.1(b)</u>, the following: Liens arising in connection with Capital Leases (and attaching only to the property being leased); Liens existing on property at the time of the acquisition thereof by any of the Loan Parties and their Subsidiaries (and not created in contemplation of that acquisition); and Liens that constitute purchase money security interests on any property securing debt incurred for the purpose of financing all or any part of the cost of acquiring that property, so long as any such Lien attaches to the applicable property within 45 days of the acquisition thereof and attaches solely to the property so acquired;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) easements, rights of way, restrictions (including zoning restrictions), covenants, encroachments, and other similar real estate charges or encumbrances, minor defects or irregularities in title, and other similar real estate Liens not interfering in any material respect with the ordinary conduct of the business of any Loan Party or any Subsidiary thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) leases, subleases, licenses, or sublicenses of the assets or properties of any of the Loan Parties and their Subsidiaries, in each case entered into in the ordinary course of business and not interfering in any material respect with the business of any of the Loan Parties and their Subsidiaries;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) customary set-off rights against depository accounts permitted under this Agreement in favor of banks at which any of the Loan Parties and their Subsidiaries maintains any such depository accounts, so long as those set-off rights secure only the obligations of that Loan Party or that Subsidiary to pay ordinary course fees and bank charges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Liens consisting of precautionary filings of UCC financing statements filed with respect to Operating Leases permitted under this Agreement and any interest of title of a lessor under any Operating Lease permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Liens arising under the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Liens arising from judgments in circumstances not constituting an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) attachments, appeal bonds, judgments and other similar Liens, for sums not exceeding $250,000 arising in connection with court proceedings; provided that the execution or other enforcement of such Liens is effectively stayed and the claims secured thereby are being actively contested in good faith and by appropriate proceedings;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Liens in favor of insurers (or other Persons financing the payment of insurance premiums) for the premiums payable in respect of insurance policies maintained by any Loan Party issued by such insurers securing Debt permitted under <u>Section</u><u> </u><u>11.1(i)</u>; *provided*, that such Liens attach solely to returned premiums in respect of such insurance policies and the proceeds of such policies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) other Liens not permitted by the foregoing clauses of this <u>Section</u><u> </u><u>11.2</u> securing Debt or other obligations permitted pursuant to this Agreement in an aggregate principal amount not to exceed $250,000 at any time outstanding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.3 <u>Restricted Payments</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, (a) make any dividend or distribution to any holders of its Equity Interests; (b) purchase or redeem any of its Equity Interests; (c) pay any management fees, transaction-based fees, or similar fees to any of its equity holders or any Affiliate thereof; (d) make any payment on account of Debt that has been contractually subordinated in right of payment to the Obligations if that payment is not permitted at that time under the applicable subordination terms and conditions; or (e) set aside funds for any of the foregoing (each of the foregoing, a "<u>Restricted Payment</u>"), except that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any Subsidiary may pay dividends or make other distributions to a Loan Party and any Loan Party may pay dividends or make other distributions to any Borrower or any Subsidiary of any Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) any Loan Party may pay dividends or distributions in the form of capital stock or other Equity Interests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) the Company may make one or more payments to Chatham Capital on one or more occasions to purchase, redeem, repurchase, or retire, or to obtain the surrender of, in whole or in part, the Warrant, in each case so long as (A) no Default or Event of Default exists or would result therefrom, and (B) Chatham Capital (in its capacity as the holder of the Warrant) has consented to that payment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the Company may make distributions to redeem securities of the Company held by employees of the Company or any of its Subsidiaries upon the death or separation from employment thereof, in an aggregate amount not to exceed $250,000 in any Fiscal Year, in each case so long as (A) no Default or Event of Default exists or would result therefrom, and (B) Borrowers are in compliance with the financial covenants set forth in <u>Section</u><u> </u><u>11.12</u> (recomputed for the most recent month for which financial statements have been delivered and determined on a pro forma basis after giving effect to such distributions);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) any Loan Party may make other Restricted Payments, in each case so long as (A) no Default or Event of Default exists at the time such Restricted Payments are made or would result from the making of such Restricted Payments, (B) the Total Debt to EBITDA Ratio is less than 2.00 to 1.00 (recomputed for the most recent month for which financial statements have been delivered and determined on a pro forma basis after giving effect to such Restricted Payments), (C) Borrowers are in compliance with the financial covenants set forth in <u>Section</u><u> </u><u>11.12</u> (recomputed for the most recent month for which financial statements have been delivered and determined on a pro forma basis after giving effect to such Restricted Payments), (D) such Restricted Payments for any Fiscal Year are funded solely from Excess Cash Flow from the immediately prior Fiscal Year, (E) the Loan Parties provide prior written notice to Administrative Agent of any such proposed Restricted Payments for any Fiscal Year within sixty (60) days after the date on which the mandatory prepayment from Excess Cash Flow for such immediately prior Fiscal Year is made pursuant to <u>Section</u><u> </u><u>6.2.2(b)(v)</u> (or such later date as Administrative Agent may agree in writing), (F) if the Loan Parties elect to make such Restricted Payments, such Restricted Payments are made prior to the end of the Fiscal Year during which notice has been given to Administrative Agent pursuant to the foregoing <u>clause</u><u> </u><u>(E)</u> and the Loan Parties have provided prior written notice of the making of such Restricted Payments (in addition to the notice of such proposed Restricted Payments given to Administrative Agent pursuant to the foregoing <u>clause</u><u> </u><u>(E)</u>), and (G) the aggregate amount of all such Restricted Payments made for any Fiscal Year does not exceed the amount of Excess Cash Flow for such immediately prior Fiscal Year that is not so applied as a mandatory prepayment; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) any Loan Party may make any other payments expressly permitted by <u>Section</u><u> </u><u>11.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.4 <u>Mergers, Consolidations, Sales</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, (a) be a party to any merger or consolidation; (b) sell, transfer, dispose of, convey, or lease any of its assets or Equity Interests (including the sale of Equity Interests of any Subsidiary); or (c) sell or assign with or without recourse any receivables, except the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any such merger, consolidation, sale, transfer, acquisition, conveyance, lease, or assignment of or by any Borrower or Subsidiary with and into any Borrower so long as (A) no other provision of this Agreement would be violated thereby; (B) that Borrower gives Administrative Agent at least 15 days' prior written notice of that merger or consolidation; (C) no Default or Event of Default has occurred and is continuing either before or after giving effect to that transaction; and (D) the Lenders' rights in any Collateral, including the existence, perfection and priority of any Lien thereon, are not adversely affected by that merger or consolidation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) mergers or consolidations which are Permitted Acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) sales, leases, assignments, conveyances, other transfers for value and dispositions of assets, in each case, of the type specifically described in <u>clauses</u><u> </u><u>(a)</u> through <u>(e)</u> of the definition of "Asset Disposition";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) the use of cash or Cash Equivalent Investments in a manner not prohibited by the Loan Documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) licenses, sublicenses, leases or subleases granted to third parties in the ordinary course of business not materially interfering with the business of the Loan Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) sales, forgiveness or discounting, on a non-recourse basis and in the ordinary course of business, of past due accounts in connection with the collection or compromise thereof or the settlement of delinquent accounts or in connection with the bankruptcy or reorganization of suppliers or customers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) the lapse, abandonment or other dispositions (including licensing and sublicensing) of intellectual property that is, in the reasonable good faith judgment of a Loan Party, no longer economically practicable or commercially desirable to maintain or useful in the conduct of the business of the Loan Parties;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) sales, transfers and dispositions of assets that are obsolete, uneconomical, surplus or of no further value to or use in the business or operations of the Loan Parties; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) any sales, transfers and dispositions of assets that constitutes (A) an Investment expressly permitted under <u>Section</u><u> </u><u>11.9</u> (other than equity interests in a Subsidiary), (B) a Lien expressly permitted under <u>Section</u><u> </u><u>11.2</u>, or (C) a distribution expressly permitted under <u>Section 11.3</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.5 <u>Modification of Certain Documents; Organizational Form</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Not permit the organizational documents or governing documents of any Loan Party to be amended or modified in any way that could reasonably be expected to materially adversely affect the interests of the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Not change, or allow any Loan Party to change, its state of formation or its organizational form without providing Administrative Agent with at least 20 days' prior written notice (which notice shall include such detail as Administrative Agent may reasonably require to maintain the perfection of its Liens on the Collateral).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.6 <u>Transactions with Affiliates</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, enter into, or cause, suffer, or permit to exist any transaction, arrangement, or contract with any of its other Affiliates (other than the Loan Parties), except:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to the extent expressly permitted by <u>Sections 11.3</u> and <u>11.4(i)</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) entering into employment and severance arrangements between or among the Company, any Subsidiary of the Company and any of their respective officers, directors and employees, in the ordinary course of business, as determined commercially reasonable in good faith by the board of directors or senior management of the relevant Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) transactions, arrangements, and contracts which are on arm's-length terms which are not less favorable to it or such Loan Party than are obtainable from any Person which is not one of its Affiliates, so long as (i) Borrowers have provided Administrative Agent with at least 10 days' prior written notice of such transaction, arrangement, or contract, and (ii) the aggregate amount of consideration payable to or by the Loan Parties and their Subsidiaries under all such transactions, arrangements, and contracts does not exceed $1,000,000 in any Fiscal Year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) consummation of the Related Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) payment of reasonable and customary directors' fees and reimbursement of actual out-of-pocket expenses incurred in connection with attending board of directors meetings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) customary indemnity obligations and reimbursements to directors, officers and employees of any Loan Party or any of their Subsidiaries to the extent permitted hereunder.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.7 <u>Inconsistent Agreements</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, enter into any agreement containing any provision that would (a) be violated or breached in any material respect by any borrowing by Borrowers under this Agreement or by the performance by any Loan Party of any of its Obligations under this Agreement or under any other Loan Document; (b) prohibit any Loan Party from granting to Administrative Agent and the Lenders a Lien on any of its assets; or (c) create or permit to exist or become effective any encumbrance or restriction on the ability of any Subsidiary to (i) pay dividends or make other distributions to the Company, any Borrower, or any other Subsidiary, or pay any Debt owed to the Company, any Borrower, or any other Subsidiary, (ii) make loans or advances to any Loan Party, or (iii) transfer any of its assets or properties to any Loan Party, other than (A) customary restrictions and conditions contained in agreements relating to the sale of all or a substantial part of the assets of any Subsidiary pending any such sale, so long as those restrictions and conditions apply only to the Subsidiary to be sold and that sale is permitted under this Agreement (but those); (B) restrictions or conditions imposed by any agreement relating to purchase money Debt, Capital Leases, and other secured Debt permitted by this Agreement, so long as those restrictions or conditions apply only to the property or assets securing that Debt; and (C) customary provisions in leases and other contracts restricting the assignment thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.8 <u>Business Activities</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, engage in any line of business other than the businesses engaged in on the Closing Date and businesses reasonably related, ancillary, or complementary thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.9 <u>Investments</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, make or permit to exist any Investment in any other Person, except the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) contributions by Borrowers or any Subsidiary to the capital of any Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Investments constituting Debt permitted by <u>Section</u><u> </u><u>11.1</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Contingent Liabilities constituting Debt permitted by <u>Section</u><u> </u><u>11.1</u> or Liens permitted by <u>Section</u><u> </u><u>11.2</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Cash Equivalent Investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) subject to <u>Section</u><u> </u><u>10.10</u>, bank deposits in the ordinary course of business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Investments consisting of securities or instruments received pursuant to a disposition of assets permitted by this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Investments constituting Permitted Acquisitions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Investments in any Person that becomes a Subsidiary after the Closing Date in connection with any Permitted Acquisition and becomes a Loan Party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Investments in Subsidiaries that (i) are Loan Parties on the Closing Date or (ii) become Loan Parties after the Closing Date;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) non-cash consideration received pursuant to the consummation of asset dispositions and Permitted Acquisitions, in each case permitted under this Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) non-cash consideration received in respect of obligations owing to any Loan Party in connection with the insolvency, bankruptcy, receivership or reorganization of an account debtor or a compromise or settlement of the obligations of such account debtor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) bank deposits established in accordance with the Loan Documents;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Investments listed on Schedule 11.9 as of the Closing Date and any extension or renewal thereof without any increase in the amount thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) loans and advances to employees of any Loan Party not to exceed $250,000 in the aggregate at any time outstanding;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) to the extent constituting an Investment, guaranty obligations expressly permitted hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) other Investments, loans, and advances in addition to those otherwise permitted by this <u>Section</u><u> </u><u>11.9</u> to the extent the aggregate amount of such other Investments, loans, and advances made after the date hereof and not repaid does not exceed $250,000 in the aggregate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.10 <u>Restriction of Amendments to Certain Documents</u>. Not amend or otherwise modify, or waive any rights under the organizational documents of any Loan Party, any Related Agreement, or any Material Contract, in each case other than immaterial amendments, modifications, and waivers not adverse to the interests of Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.11 <u>Fiscal Year</u>. Not, and not permit any of the Loan Parties and their Subsidiaries to, change its Fiscal Year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12 <u>Financial Covenants</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12.1 <u>Minimum EBITDA</u>. Not permit EBITDA for any Computation Period to be less than the applicable amount set forth below for that Computation Period:

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| | |
|:---|:---|
| **Computation Period Ending** | **EBITDA** |
| June 30, 2026 | $4000000 |
| September 30, 2026 | $4000000 |
| December 31, 2026 | $4000000 |
| March 31, 2027 | $4000000 |
| June 30, 2027 | $5300000 |
| September 30, 2027 | $5300000 |
| December 31, 2027 | $5300000 |
| March 31, 2028, and the last day of each Fiscal Quarter thereafter | $5300000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12.2 <u>Fixed Charge Coverage Ratio</u>. Not permit the Fixed Charge Coverage Ratio for any Computation Period to be less than the applicable ratio set forth below for that Computation Period:

---

| | |
|:---|:---|
| **Computation Period Ending** | **Fixed Charge** <br> **Coverage Ratio** |
| June 30, 2026 | 1.20 to 1.00 |
| September 30, 2026 | 1.20 to 1.00 |
| December 31, 2026 | 1.20 to 1.00 |
| March 31, 2027 | 1.20 to 1.00 |
| June 30, 2027 | 1.20 to 1.00 |
| September 30, 2027 | 1.20 to 1.00 |
| December 31, 2027 | 1.20 to 1.00 |
| March 31, 2028, and the last day of each Fiscal Quarter thereafter | 1.20 to 1.00 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12.3 <u>Total Debt to EBITDA Ratio</u>. Not permit the Total Debt to EBITDA Ratio for any Computation Period to exceed the applicable ratio set forth below for that Computation Period:

---

| | |
|:---|:---|
| **Computation Period Ending** | **Total Debt to** <br> **EBITDA Ratio** |
| June 30, 2026 | 5.25 to 1.00 |
| September 30, 2026 | 5.25 to 1.00 |
| December 31, 2026 | 5.25 to 1.00 |
| March 31, 2027 | 5.25 to 1.00 |
| June 30, 2027 | 3.90 to 1.00 |
| September 30, 2027 | 3.90 to 1.00 |
| December 31, 2027 | 3.90 to 1.00 |
| March 31, 2028, and the last day of each Fiscal Quarter thereafter | 3.50 to 1.00 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12.4 <u>Capital Expenditures</u>. Not permit the aggregate amount of all unfinanced Capital Expenditures made by the Loan Parties and their Subsidiaries (including unfinanced maintenance and growth Capital Expenditures, but excluding unfinanced Capital Expenditures related to new-contract wins as approved in writing by Administrative Agent and the Required Lenders in their commercially reasonable discretion) in each period set forth below to exceed the applicable amount set forth below for such period:

---

| | |
|:---|:---|
| **Period** | **Unfinanced**<br> **Capital Expenditures** |
| Closing Date through June 30, 2026 | $4000000 |
| Closing Date through September 30, 2026 | $4000000 |
| Closing Date through December 31, 2026 | $4000000 |
| Computation Period ending March 31, 2027 | $4000000 |
| Computation Period ending June 30, 2027 | $3500000 |
| Computation Period ending<br> September 30, 2027 | $3500000 |
| Computation Period ending<br> December 31, 2027 | $3500000 |
| Computation Period ending March 31, 2028, and the last day of each Fiscal Quarter thereafter | $3300000 |

---

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.12.5 <u>Minimum Liquidity</u>. Not permit Liquidity, determined on a 30-day average basis, as of the last day any Computation Period to be less than the amount set forth below for that Computation Period:

---

| | |
|:---|:---|
| **Computation Period Ending** | **Liquidity**<br> **(30-day average)** |
| June 30, 2026 | $1000000 |
| September 30, 2026 | $1000000 |
| December 31, 2026 | $1000000 |
| March 31, 2027 | $1000000 |
| June 30, 2027 | $1000000 |
| September 30, 2027 | $1000000 |
| December 31, 2027 | $1000000 |
| March 31, 2028, and the last day of each Fiscal Quarter thereafter | $1000000 |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.13 <u>Compliance with Laws</u>. Borrowers shall not, and shall not permit any of the Loan Parties and their Subsidiaries to, fail to comply with the laws, regulations and executive orders referred to in <u>Sections</u><u> </u><u>9.30</u> and <u>9.31.</u>

SECTION 12 EFFECTIVENESS; CONDITIONS OF LENDING, ETC.

The effectiveness of this Agreement and the obligation of each Lender to make its Loans are subject to the following conditions precedent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1 <u>Conditions to Effectiveness</u>. The effectiveness of this Agreement, and the obligation of the Lenders to make the Loans, are, in addition to the conditions precedent specified in <u>Section</u><u> </u><u>12.2</u>, subject to satisfaction of the following conditions precedent (and the date on which all such conditions precedent have been satisfied or waived in writing by Administrative Agent and the Lenders is called the "<u>Closing Date</u>"), it being agreed that the request by Borrower Representative for the making of any initial Loan on the Closing Date will be deemed to constitute a representation and warranty by Borrowers that the conditions precedent set forth in this <u>Section</u><u> </u><u>12.1</u> will be satisfied at the time of the making of that Loan unless waived in writing by Administrative Agent:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.1 <u>Agreement, Notes, and other Documents</u>. Administrative Agent has received the following, each duly executed and dated as of the Closing Date (or any earlier date satisfactory to Administrative Agent), in form and substance satisfactory to Administrative Agent: (a) this Agreement; (b) to the extent requested by any Lender, one or more Notes made payable to that Lender; (c) the Guaranty and Collateral Agreement, together with all instruments, transfer powers, and other items required to be delivered in connection with the Guaranty and Collateral Agreement; (d) all other Loan Documents; and (e) with respect to the Warrant, a registration rights agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.2 <u>Authorization Documents</u>. For each Loan Party, Administrative Agent has received the following, each in form and substance satisfactory to Administrative Agent: (a) that Person's charter (or similar formation document), certified by the appropriate governmental authority (or, in the case of a Canadian Borrower, certified by a director or officer of that Person); (b) good standing certificates (or, in the case of a Canadian Borrower, a certificate of status or compliance issued by the applicable Canadian governmental authority, or where no such certificate is available, a certificate of a director or officer that such Person is in good standing under the laws of its jurisdiction of organization) in that Person's state or jurisdiction of incorporation (or formation); (c) that Person's bylaws (or similar governing document), certified by a director or officer of that Person; (d) resolutions of its board of directors (or similar governing body) approving and authorizing that Person's execution, delivery, and performance of the Loan Documents to which it is party and the transactions contemplated thereby; and (e) signature and incumbency certificates of that Person's officers and/or managers executing any of the Loan Documents (which certificates Administrative Agent and each Lender may conclusively rely on until formally advised by a like certificate of any changes in any such certificate), all certified by its secretary or an assistant secretary (or similar officer) as being in full force and effect without modification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.3 <u>Consents, etc</u>. Administrative Agent has received certified copies of all documents evidencing any necessary company action, consents and governmental approvals (if any) required for the execution, delivery, and performance by the Loan Parties of the documents referred to in this <u>Section</u><u> </u><u>12.1</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.4 <u>Letter of Direction</u>. Administrative Agent has received a letter of direction containing funds flow information with respect to the proceeds of the Loans on the Closing Date, duly executed and dated as of the Closing Date, in form and substance satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.5 <u>Collateral and Diligence Questionnaire</u>. Administrative Agent has received a Collateral and Diligence Questionnaire completed and executed by each Loan Party, in form and substance satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.6 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.7 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.8 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.9 <u>Opinions of Counsel</u>. Administrative Agent has received opinions of counsel for each Loan Party, including local counsel reasonably requested by Administrative Agent, each duly executed and dated as of the Closing Date (or any earlier date satisfactory to Administrative Agent), in form and substance reasonably satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.10 <u>Insurance</u>. Administrative Agent has received evidence of the existence of insurance required to be maintained pursuant to <u>Section</u><u> </u><u>10.3(b)</u>, together with evidence that Administrative Agent has been named as a lender's loss payee and an additional insured on all related insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.11 <u>Related Transactions.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Administrative Agent has received copies of the Related Agreements certified by the secretary or assistant secretary (or similar officer) of Borrower Representative as being true, accurate, and complete.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Administrative Agent has received evidence, reasonably satisfactory to Administrative Agent, that Borrowers have completed, or concurrently with the initial credit extension hereunder will complete, the Related Transactions in accordance with the terms of the Related Agreements (without any material amendment thereto or waiver thereunder unless consented to by the Lenders).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.12 <u>Payment of Fees</u>. To the extent invoiced in reasonable detail at least one (1) Business Day prior to the Closing Date, Borrowers shall have paid all fees, costs, and expenses due and payable under this Agreement and the other Loan Documents on the Closing Date (including, without limitation, fees under the Agent Fee Letter).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.13 <u>Debt to be Discharged</u>. Administrative Agent has received evidence, reasonably satisfactory to Administrative Agent, that all Debt to be Discharged has been (or concurrently with the initial borrowing will be) discharged in full and that all agreements and instruments governing the Debt to be Repaid and that all Liens securing the Debt to be Discharged have been (or concurrently with the initial borrowing will be) terminated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.14 <u>Solvency Certificate</u>. Administrative Agent has received a solvency certificate, in form and substance satisfactory to Administrative Agent, executed by a Senior Officer of the Borrower Representative.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.15 <u>Search Results; Lien Terminations</u>. Administrative Agent has received certified copies of Uniform Commercial Code search reports dated a date reasonably near to the Closing Date, listing all effective financing statements which name any Loan Party (under their present names and any previous names) as debtors, together with (a) copies of all such financing statements; (b) payoff letters or other documentation evidencing discharge in full of all Debt to be Discharged, the termination of all agreements relating thereto, and the release of all Liens granted in connection therewith, with Uniform Commercial Code or other appropriate termination statements and documents effective to evidence the foregoing (other than Permitted Liens); (c) Uniform Commercial Code termination statements pertaining to previously terminated financing, lease, and/or consignment relationships for which financing statements remain of record, in each case as Administrative Agent reasonably requests; and (d) all other Uniform Commercial Code termination statements as Administrative Agent reasonably requests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.16 <u>Filings, Registrations, and Recordings</u>. Administrative Agent has received each document (including, without limitation, (i) Uniform Commercial Code financing statements and (ii) financing statements under the applicable Personal Property Security Act (Canada) with respect to each Canadian Borrower) required by the Collateral Documents or under applicable law or reasonably requested by Administrative Agent to be filed, registered, or recorded in order to create in favor of Administrative Agent, for the benefit of Administrative Agent and the Lenders, a perfected Lien on the Collateral described therein (but only to the extent that perfection may be achieved by such a filing, registration, or recording), prior to any other Liens (subject only to Permitted Liens), in proper form for filing, registration, or recording.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.17 <u>Closing Certificate</u>. Administrative Agent has received a certificate, in form and substance satisfactory to Administrative Agent, executed by a Senior Officer of Borrower Representative on behalf of Borrowers certifying (i) the matters set forth in <u>Section</u><u> </u><u>12.2.1</u> as of the Closing Date, and (ii) as to the occurrence of the closing of the Related Transactions and that the closing has been consummated in accordance with the terms of the Related Agreements without waiver of any material condition thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.18 <u>Financial Statements; Appraisals</u>. Administrative Agent has received and is reasonably satisfied with (a) the Financial Statements and all other historical and projected financial information of Loan Parties and their Subsidiaries reasonably requested by Administrative Agent, and (b) all appraisals of Loan Parties' assets reasonably requested by Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.19 <u>No Material Adverse Effect</u>. There has not occurred since September 30, 2025, any developments or events that, individually or in the aggregate with any other circumstances, has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.20 <u>Investment Documents</u>. Administrative Agent has received confirmation of ownership and capital structure of the Loan Parties and is satisfied with the constituent documents of the Loan Parties and related investment agreements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.21 <u>Financial Tests</u>. Administrative Agent has received evidence satisfactory to it that (a) Borrowers have a trailing 12-month EBITDA of at least $5,600,000 as of January 31, 2026; and (b) the Loan Parties have reasonably sufficient liquidity to operate their business plan and in an amount (not less than $1,000,000) satisfactory to Administrative Agent (with no payables stretched beyond their customary payment practices).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.22 <u>Diligence</u>. Administrative Agent has received and is satisfied with all business, legal, regulatory, financial and other due diligence materials requested by Administrative Agent (including, without limitation, all Material Contracts of the Loan Parties).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.23 <u>Financial Condition</u>. Administrative Agent has completed a satisfactory examination of the financial condition of the Loan Parties, including, without limitation, the following: (a) review of the books (including historical, current, and interim financial statements), records, and assets of the Loan Parties; (b) review of all financial projections for Fiscal Year 2026; (c) satisfactory verification of business and competitive analysis, including, without limitation, site visits, one or more meetings with the Loan Parties' management, examining market studies and existing industry intelligence provided by the Loan Parties, and conducting independent customer calls; and (d) receipt of a satisfactory review, conducted by a firm reasonably acceptable to Administrative Agent, of (i) the books, records, and Collateral of the Loan Parties (including historical cash flow), (ii) a quality-of-earnings report, (iii) trailing 12-month EBITDA, and (iv) EBITDA adjustments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.24 <u>Background Checks</u>. Administrative Agent has reviewed and is satisfied with background checks on certain key management and shareholders of the Loan Parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.25 <u>Approvals</u>. Administrative Agent has received approval of its executive credit committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.26 <u>Non-Compete</u>. Key management and certain shareholders of the Loan Parties identified by Administrative Agent have entered into employment or other agreements containing customary provisions, including, without limitation, non-compete, non-solicitation, and confidentiality, all on terms reasonably satisfactory to Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.1.27 <u>Other</u>. Administrative Agent has received all other documents reasonably requested by Administrative Agent or any Lender.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2 <u>Conditions Precedent to all Loans</u>. The obligation of each Lender to make each Loan is subject to the following further conditions precedent that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.1 <u>Compliance with Warranties, No Default, etc</u>. Both before and after giving effect to any borrowing, the following statements are true and correct:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the representations and warranties of each Loan Party set forth in this Agreement and the other Loan Documents are true and correct in all material respects (unless any such representation or warranty is by its terms qualified by concepts of materiality, in which case that representation or warranty is true and correct in all respects) with the same effect as if then made (except to the extent stated to relate to a specific earlier date, in which case that representation or warranty is true and correct in all material respects or in all respects, as applicable, as of that earlier date); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.2 <u>Financial Tests</u>. Administrative Agent has received evidence satisfactory to it that Borrowers are in compliance with the financial covenants set forth in <u>Section</u><u> </u><u>11.12</u> (recomputed for the most recent month for which financial statements have been delivered and determined on a pro forma basis after giving effect to (i) the Loans to be made on the requested borrowing date and (ii) the consummation of all related transactions to be consummated on or about the requested borrowing date (including the payment by Borrowers of all fees and expenses incurred in connection with the consummation of those related transactions)).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.2.3 <u>Confirmatory Certificate</u>. If requested by Administrative Agent or any Lender, Administrative Agent has received a certificate dated the date of the requested Loan and signed by a duly authorized representative of Borrower Representative as to the matters set out in <u>Sections</u><u> </u><u>12.2.1 and 12.2.2</u> (it being understood that each request by Borrower Representative for the making of a Loan will be deemed to constitute a representation and warranty by Borrowers that the conditions precedent set forth in <u>Sections</u><u> </u><u>12.2.1 and 12.2.2</u> will be satisfied at the time of the making of that Loan), together with such other documents as Administrative Agent or any Lender may reasonably request in support thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3 <u>Conditions Precedent to each Interest Line Loan</u>. The obligation of each Lender to make each Interest Line Loan is subject to the following further conditions precedent that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.1 <u>Use of Proceeds</u>. Administrative Agent is satisfied in its reasonable discretion that Borrowers will use the proceeds of that Interest Line Loan on or about the requested borrowing date in accordance with <u>Section</u><u> </u><u>4.1.5</u> and <u>Section</u><u> </u><u>10.6</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.2 <u>Financial Tests</u>. Administrative Agent has received evidence satisfactory to it that Borrowers are in compliance with the financial covenants set forth in <u>Section</u><u> </u><u>11.12</u> (recomputed for the most recent month for which financial statements have been delivered and determined on a pro forma basis after giving effect to (i) the Loans to be made on the requested borrowing date and (ii) the consummation of all related transactions to be consummated on or about the requested borrowing date (including the payment by Borrowers of all fees and expenses incurred in connection with the consummation of those related transactions)).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.3.3 <u>Confirmatory Certificate</u>. If requested by Administrative Agent or any Lender, Administrative Agent has received a certificate dated the date of the requested Interest Line Loan and signed by a duly authorized representative of Borrower Representative as to the matters set out in <u>Sections</u><u> </u><u>12.3.1</u> and <u>12.3.2</u> (it being understood that each request by Borrower Representative for the making of an Interest Line Loan will be deemed to constitute a representation and warranty by Borrowers that the conditions precedent set forth in <u>Sections 12.3.1</u> and <u>12.3.2</u> will be satisfied at the time of the making of that Interest Line Loan), together with such other documents as Administrative Agent or any Lender may reasonably request in support thereof.

SECTION 13 EVENTS OF DEFAULT AND THEIR EFFECT.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1 <u>Events of Default</u>. Each of the following will constitute an Event of Default under this Agreement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.1 <u>Non-Payment of the Loans, etc</u>. Default in the payment when due of the principal of any Loan; or default, and continuance thereof for three (3) or more Business Days, in the payment when due of any interest, fee, or other amount payable by Borrowers under this Agreement or under any other Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.2 <u>Non-Payment of Other Debt</u>. Any default occurs under the terms applicable to any Debt of any Loan Party in an aggregate amount (for all such Debt so affected and including undrawn committed or available amounts and amounts owing to all creditors under any combined or syndicated credit arrangement) exceeding $400,000 and that default (a) consists of the failure to pay that Debt when due, whether by acceleration or otherwise (subject to any applicable grace periods), or (b) accelerates the maturity of that Debt or permits the holder or holders thereof, or any trustee or agent for any such holder or holders, to cause that Debt to become due and payable (or require any Loan Party to purchase or redeem that Debt or post cash collateral in respect thereof) prior to its expressed maturity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.3 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.4 <u>Bankruptcy, Insolvency, etc</u>. Any of the following occurs: (a) any Loan Party becomes insolvent or generally fails to pay, or admits in writing its inability or refusal to pay, debts as they become due; (b) any Loan Party applies for, consents to, or acquiesces in the appointment of a trustee, receiver, or other custodian for that Loan Party or any property thereof, or makes a general assignment for the benefit of creditors; (c) in the absence of any such application, consent, or acquiescence, a trustee, receiver, or other custodian is appointed for any Loan Party or for a substantial part of the property of any thereof and is not discharged within 45 days; (d) any Insolvency Proceeding, or any dissolution or liquidation proceeding, is commenced in respect of any Loan Party, and if that Insolvency Proceeding or proceeding is not commenced by that Loan Party, it (i) is consented to or acquiesced in by that Loan Party, or (ii) remains for 45 days undismissed; or (e) any Loan Party takes any action to authorize, or in furtherance of, any of the foregoing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.5 <u>Non-Compliance with Loan Documents</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Failure by any Loan Party to comply with or to perform any covenant set forth in <u>Sections</u><u> </u><u>10.1.1</u>, <u>10.1.2</u>, <u>10.1.3</u>, <u>10.1.5</u>, <u>10.3(b)</u>, <u>10.5</u> (solely as to existence), <u>10.6</u>, <u>10.11</u>, <u>10.12</u>, <u>10.13</u> or <u>Section</u><u> </u><u>11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Failure by any Loan Party to comply with or to perform any other provision of this Agreement or any other Loan Document (and not constituting an Event of Default under any other provision of this <u>Section</u><u> </u><u>13</u>) and continuance of that failure described in this <u>Section</u><u> </u><u>13.1.5(b)</u> for thirty (30) or more days after the earlier to occur of (i) written notice by Administrative Agent or any Lender and (ii) the date upon which any Senior Officer obtains actual knowledge thereof (or such knowledge as would have been obtained by a Senior Officer acting in good faith in the ordinary course of such officer's duties).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.6 <u>Representations; Warranties</u>. Any representation or warranty made by any Loan Party in this Agreement or any other Loan Document is breached or is false or misleading in any material respect when made or deemed made, or any schedule, certificate, financial statement, written report, or other writing furnished by any Loan Party to Administrative Agent or any Lender in connection with this Agreement is false or misleading in any material respect on the date as of which the facts therein set forth are stated or certified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.7 <u>Pension Plans</u>. Any of the following occurs: (a) any Person institutes steps to terminate a Pension Plan if as a result of that termination any Borrower or any Subsidiary could be required to make a contribution to that Pension Plan, or could incur a liability or obligation to that Pension Plan, in excess of $750,000; (b) a contribution failure occurs with respect to any Pension Plan sufficient to give rise to a Lien under Section 303(k) of ERISA with respect to any Borrower or any Subsidiary; (c) the Unfunded Liability exceeds 20% of the Total Plan Liability, or (d) there occurs any withdrawal or partial withdrawal from a Multiemployer Pension Plan and the withdrawal liability (without unaccrued interest) to Multiemployer Pension Plans as a result of that withdrawal (including any outstanding withdrawal liability that any Borrower or any member of the Controlled Group have incurred on the date of that withdrawal) to which any Borrower or any Subsidiary is reasonably expected to incur exceeds $750,000.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.8 <u>Judgments</u>. One or more final judgments which exceed an aggregate of $750,000 are rendered against any Loan Party (not covered by insurance as to which the insurance company has acknowledged coverage) and have not been paid, discharged or vacated or had execution thereof stayed pending appeal within 60 days after entry or filing of those judgments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.9 <u>Invalidity of Loan Documents, etc</u>. Any Loan Document ceases to be in full force and effect, or any Loan Party (or any Person by, through, or on behalf of any Loan Party) contests in any manner the validity, binding nature, or enforceability of any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.1.10 <u>Change of Control</u>. A Change of Control occurs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.2 <u>Effect of Event of Default</u>. If any Event of Default described in <u>Section</u><u> </u><u>13.1.4</u> occurs in respect of any Borrower, then the Commitments will immediately terminate and the Loans and all other Obligations under this Agreement will become immediately due and payable, all without presentment, demand, protest, or notice of any kind. If any other Event of Default occurs and is continuing, then Administrative Agent may (and, upon the written request of the Required Lenders shall) declare, in a written notice to Borrower Representative, the Commitments to be terminated in whole or in part and/or declare all or any part of the Loans and all other Obligations under this Agreement to be due and payable, whereupon the Commitments will immediately terminate (or be reduced, as applicable) and/or the Loans and other Obligations under this Agreement will become immediately due and payable (in whole or in part, as applicable), all without presentment, demand, protest, or notice of any kind (other than as expressly provided for above in this sentence). Administrative Agent shall promptly advise Borrower Representative of any such declaration, but failure to do so will not impair the effect of any such declaration.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.3 <u>Credit Bidding</u>. The Loan Parties and the Lenders hereby irrevocably authorize Administrative Agent, based upon the instruction of the Required Lenders, to Credit Bid and purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral at any sale thereof conducted by Administrative Agent in accordance with applicable law, based upon the instruction of the Required Lenders, under any provisions of the Uniform Commercial Code, as part of any sale or investor solicitation process conducted by any Loan Party, any interim receiver, receiver, receiver and manager, administrative receiver, trustee, agent, or other Person pursuant or under any insolvency laws, in each case subject to the following limitations: (i) the Required Lenders may not direct Administrative Agent in any manner that does not treat each of the Lenders equally, without preference or discrimination, in respect of consideration received as a result of any Credit Bid; (ii) the acquisition documents must be commercially reasonable and contain customary protections for minority holders, such as, among other things, anti-dilution and tag-along rights; (iii) the exchanged debt or equity securities must be freely transferable, without restriction (subject to applicable securities laws); and (iv) reasonable efforts must be made to structure the acquisition in a manner that causes the governance documents pertaining thereto to not impose any obligations or liabilities upon the Lenders individually (such as indemnification obligations). For purposes of this <u>Section</u><u> </u><u>13.3</u>, the term "<u>Credit Bid</u>" means an offer submitted by Administrative Agent (on behalf of the Lenders), based upon the instruction of the Required Lenders, to acquire the property of any Loan Party or any portion thereof in exchange for and in full and final satisfaction of all or a portion (as determined by Administrative Agent, based upon the instruction of the Required Lenders) of the claims and Obligations under this Agreement and other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4 <u>Equity Cure Right</u>. In the event the Loan Parties fail to comply with any financial covenant contained in set forth in <u>Section</u><u> </u><u>11.12</u> (a "<u>Financial Covenant Default</u>"), the Company shall have the right to cure such Event of Default on the following terms and conditions (the "<u>Equity Cure Right</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.1 <u>Cure Notice</u>. In the event the Company desires to cure a Financial Covenant Default, the Company shall deliver to Administrative Agent irrevocable written notice of its intent to cure (a "<u>Cure Notice</u>") no later than the date on which financial statements and a Compliance Certificate as of and for the period ending on the last day of the Fiscal Quarter as of which such Financial Covenant Default occurred (the "<u>Testing Dates</u>") are required to be delivered; *provided*, *however*, that in no event shall the Company be permitted to exercise Equity Cure Rights hereunder (i) more than five (5) times during the term of this Agreement, (ii) more than two (2) times during any four (4) Fiscal Quarter period, or (iii) in consecutive Fiscal Quarters.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.2 <u>Equity Cure Securities</u>. In the event the Company delivers a Cure Notice, there shall be purchased common or preferred equity interests of (or cash capital contributions to) the Company not containing any mandatory payment of cash dividends or mandatory redemption provisions requiring cash redemptions prior to the one year anniversary of the Termination Date ("<u>Equity Cure Securities</u>") for cash consideration in an amount equal to the amount necessary to cure the applicable Financial Covenant Defaults (the "<u>Financial Covenant Cure Amount</u>") after the applicable Testing Date but prior to the date that is no later than twenty (20) Business Days after the date on which financial statements and a Compliance Certificate as of and for the period ending on the applicable Testing Date are required to be delivered (the "<u>Required Contribution Date</u>"); *provided*, *however*, that in no event shall the Financial Covenant Cure Amount exceed 25% of EBITDA without the written consent of Administrative Agent and the Required Lenders. Such Financial Covenant Cure Amount received by the Company shall be included in the calculation of EBITDA (and not be deemed to reduce the Obligations or to be applied to the payment of principal, interest, fees, or any other amounts owing to Administrative Agent or any Lender) solely for the purposes of determining compliance with the financial covenants in <u>Section</u><u> </u><u>11.12</u> at the end of the Fiscal Quarter in which such Financial Covenant Default occurred and any subsequent period that includes such Fiscal Quarter but shall be disregarded for purposes of the calculation of EBITDA for all other purposes (including, without limitation, calculating any basket levels and other items governed by reference to EBITDA).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.3 <u>No Event of Default</u>. If a Cure Notice has been delivered, then from the Testing Date related to such Cure Notice until the earlier to occur of the Required Contribution Date and the date on which Administrative Agent is notified that the required contribution will not be made, the Event of Default on the basis of the applicable Financial Covenant Default in respect of which the Cure Notice was delivered shall no longer be deemed to exist and neither Administrative Agent nor any Lender shall impose default interest, accelerate the Obligations, terminate the Revolving Commitment or exercise any enforcement remedy against the Company, any of its Subsidiaries or any of its properties solely as a result of the Financial Covenant Default that has been (or is to be) cured by the Equity Cure Right pursuant to the terms hereof; *provided* that until timely receipt of the Financial Covenant Cure Amount, an Event of Default shall be deemed to exist for all other purposes of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.4 <u>Cure</u>. Upon timely receipt by the Company in cash of the Financial Covenant Cure Amount, the Financial Covenant Default shall be deemed cured.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.4.5 <u>Subsequent Periods</u>. To the extent a Testing Date in respect of which a Financial Covenant Cure Amount for a Financial Covenant Default is received is included in the calculation of EBITDA for a subsequent fiscal period, EBITDA for such period shall be deemed permanently increased by such amount for purposes of calculating EBITDA for such subsequent period; *provided*, that the Financial Covenant Cure Amount shall be included in the calculation of EBITDA solely for the purpose of determining compliance with the applicable financial covenants giving rise to the Financial Covenant Default and not for any other purposes.

SECTION 14 AGENCY.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.1 <u>Appointment and Authorization</u>. Each Lender hereby irrevocably (subject to <u>Section</u><u> </u><u>14.10</u>) appoints, designates, and authorizes Administrative Agent to take any action on its behalf under the provisions of this Agreement and each other Loan Document and to exercise any powers and perform any duties as are expressly delegated to it, as applicable, by the terms of this Agreement or any other Loan Document, together with all powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained elsewhere in this Agreement or in any other Loan Document, Administrative Agent will not have any duty or responsibility except those expressly set forth in this Agreement, nor will Administrative Agent have or be deemed to have any fiduciary relationship with any Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations, or liabilities are to be read into this Agreement or any other Loan Document or otherwise exist against Administrative Agent, as applicable. Without limiting the generality of the foregoing sentence, the use of the term "agent" in this Agreement and in other Loan Documents with reference to Administrative Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable law. Instead, that term is used merely as a matter of market custom, and is intended to create or reflect only an administrative relationship between independent contracting parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.2 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.3 <u>Delegation of Duties</u>. Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through agents, employees, or attorneys-in-fact and is entitled to advice of counsel and other consultants or experts concerning all matters pertaining to those duties. Administrative Agent will not be responsible for the negligence or misconduct of any agent or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.4 <u>Exculpation</u>. None of Administrative Agent and its directors, officers, employees, and agents (a) will be liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan Document or the transactions contemplated hereby (except to the extent resulting from its own gross negligence or willful misconduct in connection with its duties expressly set forth in this Agreement as determined by a final, non-appealable judgment by a court of competent jurisdiction), or (b) will be responsible in any manner to any Lender or participant for any recital, statement, representation or warranty made by any Loan Party or any Affiliate of any Borrower, or any officer thereof, contained in this Agreement or in any other Loan Document, or in any certificate, report, statement, or other document referred to or provided for in, or received by Administrative Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability, or sufficiency of this Agreement or any other Loan Document (or the creation, perfection, or priority of any Lien or security interest therein), or for any failure of any Borrower or any other party to any Loan Document to perform its Obligations under this Agreement or under any other Loan Documents. Administrative Agent is not and will not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document or to inspect the properties, books, or records of any of the Loan Parties and their Subsidiaries and Affiliates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.5 <u>Reliance</u>. Administrative Agent may rely, and will be fully protected in relying, upon any writing, communication, signature, resolution, representation, notice, consent, certificate, electronic mail message, affidavit, letter, telegram, facsimile, telex or telephone message, statement, or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel (including counsel to Borrowers), independent accountants, and other experts selected by Administrative Agent. Administrative Agent will be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless Administrative Agent first receives all advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, confirmation from the Lenders of their obligation to indemnify Administrative Agent against any and all liability and expense which might be incurred by Administrative Agent by reason of taking or continuing to take any such action. Administrative Agent will in all cases be fully protected in acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of the Required Lenders and each such request and any action taken or failure to act pursuant thereto will be binding upon each Lender. For purposes of determining compliance with the conditions specified in <u>Section</u><u> </u><u>12</u>, each Lender that has signed this Agreement will be deemed to have consented to, approved, or accepted or to be satisfied with, each document or other matter required thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Administrative Agent has received written notice from that Lender prior to the proposed Closing Date specifying its objection thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.6 <u>Notice of Default</u>. Administrative Agent will not be deemed to have knowledge or notice of the occurrence of any Event of Default or Default except with respect to defaults in the payment of principal, interest and fees required to be paid to Administrative Agent for the account of the Lenders, unless Administrative Agent has received written notice from a Lender or a Borrower referring to this Agreement, describing that Event of Default or Default and stating that that notice is a "notice of default." Administrative Agent shall promptly notify the Lenders of its receipt of any such notice. Administrative Agent shall take all such actions with respect to each such Event of Default or Default as requested by the Required Lenders in accordance with <u>Section</u><u> </u><u>13</u>, but unless and until Administrative Agent has received any such request, Administrative Agent may (but will not be required to) take any action, or refrain from taking any action, with respect to any Event of Default or Default as Administrative Agent deems advisable or in the best interest of the Lenders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.7 <u>Credit Decision</u>. Each Lender acknowledges that Administrative Agent has not made any representation or warranty to it, and that no act by Administrative Agent hereafter taken, including any consent and acceptance of any assignment or review of the affairs of the Loan Parties, will be deemed to constitute any representation or warranty by Administrative Agent to any Lender as to any matter, including whether Administrative Agent has disclosed material information in its possession. Each Lender represents to Administrative Agent that it has, independently and without reliance upon Administrative Agent and based on documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations, property, financial and other condition, and creditworthiness of the Loan Parties, and made its own decision to enter into this Agreement and to extend credit to Borrowers under this Agreement. Each Lender also represents to Administrative Agent that it will, independently and without reliance upon Administrative Agent and based on documents and information as it deems appropriate at the time, continue to make its own credit analysis, appraisals, and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make all investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial and other condition, and creditworthiness of Borrowers. Except for notices, reports and other documents expressly required in this Agreement to be furnished to the Lenders by Administrative Agent, Administrative Agent will not have any duty or responsibility to provide any Lender with any credit or other information concerning the business, prospects, operations, property, financial or other condition or creditworthiness of any Borrower which may come into the possession of Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.8 <u>Indemnification</u>. Whether or not the transactions contemplated by this Agreement are consummated, each Lender shall indemnify upon demand Administrative Agent and its directors, officers, employees and agents (to the extent not reimbursed by or on behalf of Borrowers and without limiting the obligation of Borrowers to do so), according to its applicable Pro Rata Share, from and against any and all Indemnified Liabilities, except that no Lender will be liable for any payment to any such Person of any portion of the Indemnified Liabilities to the extent determined by a final, non-appealable judgment by a court of competent jurisdiction to have resulted from the applicable Person's own gross negligence or willful misconduct. No action taken in accordance with the directions of the Required Lenders will be deemed to constitute gross negligence or willful misconduct for purposes of this <u>Section</u><u> </u><u>14.8</u>. Without limitation of the foregoing, each Lender shall reimburse Administrative Agent upon demand for its ratable share of any costs or out-of-pocket expenses (including fees and charges of any counsel and/or other advisors to Administrative Agent and Taxes) incurred by Administrative Agent in connection with the preparation, execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any document contemplated by or referred to in this Agreement, to the extent that Administrative Agent is not reimbursed for any such expenses by or on behalf of Borrowers. The undertaking in this <u>Section</u><u> </u><u>14.8</u> will survive repayment of the Loans, cancellation of the Notes, any foreclosure under, or modification, release or discharge of, any or all of the Collateral Documents, termination of this Agreement and the resignation or replacement of Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.9 <u>Administrative Agent in Individual Capacities</u>. Chatham Capital and its Affiliates may make loans to, issue letters of credit for the account of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting or other business with the Loan Parties and Affiliates as though Chatham Capital were not Administrative Agent under this Agreement and without notice to or consent of any Lender. Each Lender acknowledges that, pursuant to those activities, Chatham Capital or its Affiliates might receive information regarding Borrowers or their Affiliates (including information that is subject to confidentiality obligations in favor of any Borrower or any such Affiliate) and acknowledges that Administrative Agent will be under no obligation to provide any such information to them. With respect to their Loans (if any), Chatham Capital and its Affiliates have the same rights and powers under this Agreement as any other Lender and may exercise the same as though Chatham Capital were not Administrative Agent, and the terms "Lender" and "Lenders" include Chatham Capital and its Affiliates, to the extent applicable, in their individual capacities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.10 <u>Successor Administrative Agent</u>. Administrative Agent may resign as Administrative Agent upon 30 days' notice to the Lenders and the Borrower Representative. If Administrative Agent resigns under this Agreement, the Required Lenders shall, with (so long as no Event of Default exists) the consent of Borrower Representative (which may not be unreasonably withheld or delayed), appoint from among the Lenders a successor Administrative Agent for the Lenders. If no successor agent is appointed prior to the effective date of the resignation of Administrative Agent, Administrative Agent may appoint, after consulting with the Lenders and Borrower Representative, a successor agent from among the Lenders. Upon the acceptance of its appointment as successor agent under this Agreement, that successor agent will succeed to all the rights, powers, and duties of the retiring Administrative Agent and the term "Administrative Agent" will mean that successor agent, and the retiring Administrative Agent's appointment, powers and duties as Administrative Agent will be terminated. After any retiring Administrative Agent's resignation under this Agreement as Administrative Agent, the provisions of this <u>Section</u><u> </u><u>14</u> and <u>Sections</u><u> </u><u>15.5</u> and <u>15.17</u> will inure to its benefit as to any actions taken or omitted to be taken by it while it was Administrative Agent under this Agreement. If no successor agent has accepted appointment as Administrative Agent by the date which is 30 days following a retiring Administrative Agent's notice of resignation, the retiring Administrative Agent's resignation will nevertheless thereupon become effective and the Required Lenders shall perform all of the duties of Administrative Agent under this Agreement until such time, if any, as the Required Lenders appoint a successor agent as provided for above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.11 <u>Collateral Matters</u>. Each Lender authorizes and directs Administrative Agent to enter into the other Loan Documents for the benefit of Lenders. Each Lender hereby agrees that, except as otherwise set forth in this Agreement, any action taken by Administrative Agent or Required Lenders in accordance with the provisions of this Agreement or the other Loan Documents, and the exercise by Administrative Agent or Required Lenders of the powers set forth in this Agreement or therein, together with all other powers as are reasonably incidental thereto, will be authorized by, and binding upon, all Lenders. Administrative Agent is hereby authorized on behalf of all Lenders, without the necessity of any notice to or further consent from any Lender to take any action with respect to any Collateral or Loan Documents which may be necessary to perfect and maintain perfected the Liens upon the Collateral granted pursuant to this Agreement and the other Loan Documents. The Lenders irrevocably authorize Administrative Agent, at its option and in its discretion, to do any and all of the following: (a) to release any Lien granted to or held by Administrative Agent under any Collateral Document (i) upon Payment in Full; (ii) upon property sold or to be sold or disposed of as part of or in connection with any disposition permitted under this Agreement (including the release of any Guarantor in connection with any such disposition); or (iii) subject to <u>Section</u><u> </u><u>15.1</u>, if approved in writing by the Required Lenders; or (b) to subordinate its interest in any Collateral to any holder of a Lien on that Collateral which is permitted by <u>Section</u><u> </u><u>11.2(d)(i)</u> or <u>11.2(d)(iii)</u> (it being understood that Administrative Agent may conclusively rely on a certificate from Borrower Representative in determining whether the Debt secured by any such Lien is permitted by <u>Section</u><u> </u><u>11.1(b)</u>). Upon request by Administrative Agent at any time, the Lenders will confirm in writing Administrative Agent's authority to release, or subordinate its interest in, particular types or items of Collateral pursuant to this <u>Section</u><u> </u><u>14.11</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.12 <u>Restriction on Actions by Lenders</u>. Each Lender shall not, without the express written consent of Administrative Agent, and shall, upon the written request of Administrative Agent (to the extent it is lawfully entitled to do so), set-off against the Obligations, any amounts owing by that Lender to a Loan Party or any deposit accounts of any Loan Party now or hereafter maintained with that Lender. Each Lender shall not, unless specifically requested to do so in writing by Administrative Agent, take or cause to be taken any action, including the commencement of any legal or equitable proceedings, to foreclose any loan or otherwise enforce any security interest in any of the Collateral or to enforce all or any part of this Agreement or the other Loan Documents. All enforcement actions under this Agreement and the other Loan Documents against the Loan Parties or any third party with respect to the Obligations or the Collateral may be taken by only Administrative Agent (at the direction of the Required Lenders or as otherwise permitted in this Agreement) or by its agents at the direction of Administrative Agent.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.13 <u>Administrative Agent May</u><u> </u><u>File Proofs of Claim</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.13.1 In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement, adjustment, composition, or other judicial proceeding relative to any Loan Party (including any Insolvency Proceeding), Administrative Agent (irrespective of whether the principal of any Loan is then due and payable as expressed in this Agreement or by declaration or otherwise and irrespective of whether Administrative Agent has made any demand on Borrowers) may, by intervention in any such proceeding or otherwise, do any and all of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other Obligations that are owing and unpaid and to file any other documents as are necessary or advisable in order to have the claims of the Lenders and Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances of the Lenders and Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and Administrative Agent under <u>Sections</u><u> </u><u>5</u>, <u>15.5</u>, and <u>15.17</u>) allowed in any such proceedings; and

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

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.13.2 Any custodian, receiver, assignee, trustee, liquidator, sequestrator, or other similar official in any such proceeding is hereby authorized by each Lender to make all payments to Administrative Agent and, in the event that Administrative Agent consents to the making of such payments directly to the Lenders, to pay to Administrative Agent any amount due for the reasonable compensation, expenses, disbursements and advances of Administrative Agent and its agents and counsel, and any other amounts due Administrative Agent under <u>Sections</u><u> </u><u>5</u>, <u>15.5</u>, and <u>15.17</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.13.3 Nothing contained in this Agreement will be deemed to authorize Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.14 <u>Other Agents; Arrangers and Managers</u>. None of the Lenders or other Persons identified on the facing page or signature pages of this Agreement as a "syndication agent," "documentation agent," "co-agent," "book manager," "lead manager," "arranger," "lead arranger" or "co-arranger," if any, has any right, power, obligation, liability, responsibility, or duty under this Agreement other than, in the case of any Lender, those applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so identified has or is deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in taking or not taking action under this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.15 <u>Protective Advances</u>. Administrative Agent may, from time to time at any time that an Event of Default has occurred and is continuing, make all disbursements and advances ("<u>Protective Advances</u>") that Administrative Agent, in its sole discretion, deems necessary or desirable to preserve, protect, prepare for sale or lease or dispose of the Collateral or any portion thereof, to enhance the likelihood or maximize the amount of repayment by the Loan Parties of the Loans and other Obligations or to pay any other amount chargeable to the Loan Parties pursuant to the terms of this Agreement and the other Loan Documents, including, without limitation, costs, fees and expenses as described in <u>Section</u><u> </u><u>15.5</u>. Protective Advances are repayable on demand and will be secured by the Collateral and bear interest at a rate per annum equal to the cash interest rate then applicable to Revolving Loans. Protective Advances constitute Obligations under this Agreement and may be charged to the Loan Account in accordance with <u>Section</u><u> </u><u>7.1.2</u>. No Protective Advance made by Administrative Agent and charged to the Loan Account will be deemed to constitute a Loan and no Lender will have any obligation to fund any amount to Administrative Agent as a result thereof. The Administrative Agent shall notify each Lender and the Borrower Representative in writing of each Protective Advance made by Administrative Agent, which notice must include a description of the purpose of that Protective Advance.

SECTION 15 GENERAL.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.1 <u>Waiver; Amendments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No amendment, modification, or waiver of, or consent with respect to, any provision of this Agreement or the other Loan Documents will be effective unless it is in writing and signed by Administrative Agent and the Loan Parties and acknowledged by Lenders having an aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares expressly designated in this Agreement with respect thereto or, in the absence of any such designation as to any provision of this Agreement, by Administrative Agent and the Required Lenders. Any amendment, modification, waiver, or consent will be effective only in the specific instance and for the specific purpose for which given.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Agent Fee Letter may be amended, waived, consented to, or modified by the parties thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No amendment, modification, waiver, or consent may extend or increase the Commitment of any Lender without the written consent of that Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No amendment, modification, waiver, or consent may extend the date scheduled for payment of any principal (excluding mandatory prepayments) of or interest on the Loans or any fees payable under this Agreement without the written consent of each Lender directly affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) No amendment, modification, waiver, or consent may reduce the principal amount of any Loan, the rate of interest thereon, or any fees payable under this Agreement without the consent of each Lender directly affected thereby (except that Administrative Agent and the Required Lenders may rescind any increase in the interest rate under and in accordance with <u>Section</u><u> </u><u>4.1.4</u>).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) No amendment, modification, waiver, or consent may do any of the following without the written consent of each Lender: (i) release any Borrower or any Guarantor from its obligations, other than as part of or in connection with any disposition permitted under this Agreement; (ii) release all or any substantial part of the Collateral granted under the Collateral Documents (except as permitted by <u>Section</u><u> </u><u>14.11</u>); (iii) change the definitions of Pro Rata Share or Required Lenders, any provision of this <u>Section</u><u> </u><u>15.1</u>, any provision of <u>Section</u><u> </u><u>13.3</u>, or reduce the aggregate Pro Rata Share required to effect an amendment, modification, waiver, or consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) No provision of <u>Sections</u><u> </u><u>6.2.2</u>, <u>6.3</u>, or <u>7.2.2(b)</u> with respect to the timing or application of mandatory prepayments of the Loans may be amended, modified, or waived without the consent of Lenders having a majority of the aggregate Pro Rata Shares of the Term A Loans affected thereby and/or the Interest Line Loans affected thereby.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) No provision of <u>Section</u><u> </u><u>14</u> or other provision of this Agreement affecting Administrative Agent in its capacity as such may be amended, modified, or waived without the consent of Administrative Agent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Notwithstanding the foregoing, this Agreement may be amended (or amended and restated) with the written consent of the Required Lenders, Administrative Agent, and Borrowers to do any of the following: (i) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits of this Agreement and the other Loan Documents with the Revolving Loans, the Revolving Commitments, the Term A Loans, the Interest Line Loans, the Interest Line Loan Commitments, and the accrued interest and fees in respect thereof and (ii) to include appropriately the Lenders holding any such additional credit facilities in any determination of the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) If, in connection with any proposed amendment, modification, waiver or termination requiring the consent of all Lenders, the consent of the Required Lenders is obtained but the consent of other Lenders whose consent is required is not obtained (any such Lender whose consent is not obtained is referred to as a "<u>Non-Consenting Lender</u>"), then, so long as Administrative Agent is not a Non-Consenting Lender, Administrative Agent and/or one or more Persons reasonably acceptable to Administrative Agent may (but will not be required to) purchase from that Non-Consenting Lender, and that Non-Consenting Lenders shall, upon Administrative Agent's request, sell and assign to Administrative Agent and/or any such Person, all of the Loans and Commitments of that Non-Consenting Lender for an amount equal to the principal balance of all such Loans and Commitments held by that Non-Consenting Lender and all accrued interest, fees, expenses, and other amounts then due with respect thereto through the date of sale, which purchase and sale will be consummated pursuant to an executed Assignment Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.2 <u>Confirmations</u>. Each Borrower and each holder of a Note agree from time to time, upon written request received by it from the other, to confirm to the other in writing (with a copy of each such confirmation to Administrative Agent) the aggregate unpaid principal amount of the Loans then outstanding under that Note.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3 <u>Notices</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.1 <u>Generally</u>. Except as otherwise provided in <u>Section</u><u> </u><u>2.2.2</u>, all notices under this Agreement must be in writing (including facsimile transmission) and must be sent to the applicable party at its address shown on <u>Annex B</u> or at any other address as the receiving party designates, by written notice received by the other parties, as its address for that purpose. Notices sent by facsimile transmission will be deemed to have been given when sent; notices sent by mail will be deemed to have been given three Business Days after the date when sent by registered or certified mail, postage prepaid; and notices sent by hand delivery or overnight courier service will be deemed to have been given when received. For purposes of <u>Section</u><u> </u><u>2.2.2</u>, Administrative Agent will be entitled to rely on telephonic instructions from any person that Administrative Agent in good faith believes is an authorized officer or employee of Borrower Representative, and Borrowers shall hold harmless Administrative Agent and each other Lender from any loss, cost, or expense resulting from any such reliance.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.3.2 <u>Electronic Communications</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Notices and other communications to any Lender under this Agreement may be delivered or furnished by electronic communication (including e-mail and Internet or intranet websites) pursuant to procedures approved by Administrative Agent, but the foregoing does not apply to notices to any Lender pursuant to <u>Section</u><u> </u><u>2.2</u> if that Lender has notified Administrative Agent and Borrower Representative that it is incapable of receiving notices under <u>Section</u><u> </u><u>2.2</u> by electronic communication. Administrative Agent or any of Borrowers may, in its respective sole discretion, agree to accept notices and other communications to it under this Agreement by electronic communications pursuant to procedures approved by it, and approval of any such procedures may be limited to particular notices or communications.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless otherwise agreed by the sender and the intended recipient, (i) notices and other communications sent to an e-mail address will be deemed received upon the sender's receipt of an acknowledgement from the intended recipient (such as by the "return receipt requested" function, as available, return e-mail, or other written acknowledgement); (ii) notices or communications posted to an Internet or intranet website will be deemed received upon the deemed receipt by the intended recipient, at its e-mail address as described in the foregoing <u>clause</u><u> </u><u>(i)</u>, of notification that the notice or communication is available and identifying the website address therefor; and (iii) for both <u>clauses</u><u> </u><u>(i)</u> and <u>(ii)</u> of this <u>Section</u><u> </u><u>15.3.2(b)</u>, any notice, e-mail or other communication that is not sent during the normal business hours of the intended recipient will be deemed to have been sent at the opening of business on the next Business Day for the intended recipient.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.4 <u>Computations</u>. Where the character or amount of any asset or liability or item of income or expense is required to be determined, or any consolidation or other accounting computation is required to be made, for the purpose of this Agreement, that determination or calculation will, to the extent applicable and except as otherwise specified in this Agreement, be made in accordance with GAAP, consistently applied, but if Borrower Representative notifies Administrative Agent that Borrowers wish to amend any covenant in <u>Section</u><u> </u><u>10</u> or <u>11.12</u> (or any related definition) to eliminate or to take into account the effect of any change in GAAP on the operation of that covenant (or if Administrative Agent notifies Borrower Representative that the Required Lenders wish to amend <u>Section</u><u> </u><u>10</u> or <u>11.12</u> (or any related definition) for that purpose), then Borrowers' compliance with that covenant will be determined on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either the applicable notice under this <u>Section</u><u> </u><u>15.4</u> is withdrawn or the applicable covenant (or related definition) is amended in a manner satisfactory to Borrowers and the Required Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.5 <u>Costs, Expenses and Other Taxes</u>. Each Borrower, jointly and severally, shall pay promptly following written demand (a) all reasonable and documented out-of-pocket costs and expenses of Administrative Agent (including, without limitation, all reasonable out-of-pocket fees and charges of any counsel and/or other advisors to Administrative Agent and Other Taxes) in connection with the preparation, execution, syndication, delivery and administration (including perfection and protection of any Collateral and the costs of IntraLinks (or other similar service), if applicable) of this Agreement, the other Loan Documents, and all other documents provided for in this Agreement or delivered or to be delivered under or in connection with this Agreement (including any amendment, supplement, or waiver to any Loan Document), whether or not the transactions contemplated hereby or thereby are consummated, including, without limitation, all applicable out-of-pocket costs and expenses incurred pursuant to <u>Section</u><u> </u><u>10.2</u>; *provided*, that the Borrowers shall only be obligated to reimburse Administrative Agent for any costs and expenses pursuant to this clause (a) incurred up to the Closing Date in an aggregate amount not to exceed $300,000 unless the Borrowers otherwise agree in writing; and (b) all reasonable and documented out-of-pocket costs and expenses (including, without limitation, all reasonable out-of-pocket fees and charges of any counsel and/or other advisors to any Lender Party and all court costs and similar legal expenses and any Other Taxes) incurred by Administrative Agent and each Lender after an Event of Default in connection with the collection of the Obligations or the enforcement of this Agreement the other Loan Documents or any such other documents or during any workout, restructuring, or negotiations in respect thereof. In addition, each Loan Party shall pay, and shall save and hold harmless Administrative Agent and the Lenders from all liability for, any fees of Borrowers' auditors in connection with any reasonable exercise by Administrative Agent and the Lenders of their rights pursuant to <u>Section</u><u> </u><u>10.2</u>. All Obligations provided for in this <u>Section</u><u> </u><u>15.5</u> will survive repayment of the Loans, cancellation of the Notes, and termination of this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6 <u>Assignments; Participations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6.1 <u>Assignments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Any Lender may at any time assign to one or more Persons (any such Person, an "<u>Assignee</u>") all or any portion of that Lender's Loans and Commitments, with the prior written consent of Administrative Agent, and, so long as no Event of Default exists, Borrower Representative (which consent of Borrower Representative may not be unreasonably withheld or delayed), but (i) no such consent of any kind is required for an assignment by a Lender to a Lender or an Affiliate of a Lender or an Approved Fund, (ii) no assignment may be made to a Loan Party or an Affiliate of a Loan Party, and (iii) no assignment may be made to any Disqualified Lender; *provided*, that upon the occurrence and during the continuance of an Event of Default described in <u>Section</u><u> </u><u>13.1.1</u> or <u>Section</u><u> </u><u>13.1.4</u>, this <u>clause</u><u> </u><u>(iii)</u> shall apply solely with respect to Competitors (and Persons that are clearly identifiable, solely on the basis of such Person's name, as Affiliates of Competitors) and shall not restrict assignments to any other Person that would otherwise constitute a Disqualified Lender. Except as Administrative Agent otherwise agrees, any such assignment must be in a minimum aggregate amount equal to $500,000 (which minimum will be $100,000 if the assignment is to an Affiliate of the assigning Lender) or, if less, the remaining Commitment and Loans held by the assigning Lender. Borrowers and Administrative Agent will be entitled to continue to deal solely and directly with the assigning Lender in connection with the interests so assigned to an Assignee until Administrative Agent has received and accepted an effective assignment agreement in substantially the form of <u>Exhibit</u><u> </u><u>C</u> (an "<u>Assignment Agreement</u>") executed, delivered, and fully completed by the applicable parties thereto and a processing fee of $3,500 paid by the applicable parties thereto. No assignment may be made to any Person if at the time of that assignment Borrowers would be obligated to pay any greater amount under <u>Section</u><u> </u><u>7.6</u> or <u>Section</u><u> </u><u>8</u> to the Assignee than Borrowers are then obligated to pay to the assigning Lender under that section (and if any assignment is made in violation of the foregoing, Borrowers will not be required to pay any such greater amounts). Any attempted assignment not made in accordance with this <u>Section</u><u> </u><u>15.6.1</u> will be treated as the sale of a participation under <u>Section</u><u> </u><u>15.6.2</u>. Borrower Representative will be deemed to have granted its consent to any assignment requiring its consent under this Agreement unless Borrower Representative has expressly objected to that assignment within three Business Days after written notice thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) From and after the date on which the conditions described above have been met, (i) the Assignee will be deemed automatically to have become a party to this Agreement and, to the extent that rights and obligations under this Agreement have been assigned to that Assignee pursuant to the Assignment Agreement, will have the rights and obligations of a Lender under this Agreement, and (ii) the assigning Lender, to the extent that rights and obligations under this Agreement have been assigned by it pursuant to that Assignment Agreement, will be released from its rights (other than its indemnification rights) and obligations under this Agreement. Upon the request of the Assignee (and, as applicable, the assigning Lender) pursuant to an effective Assignment Agreement, Borrowers shall execute and deliver to Administrative Agent for delivery to the Assignee (and, as applicable, the assigning Lender) one or more Notes in accordance with <u>Section</u><u> </u><u>3.1</u> to reflect the amounts assigned to that Assignee and the amounts, if any, retained by the assigning Lender. Each such Note will be dated the effective date of the applicable assignment. Upon receipt by Administrative Agent of any such Note, the assigning Lender shall return to Borrower Representative any applicable prior Note held by it.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure obligations of that Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this <u>Section</u><u> </u><u>15.6.1</u> will not apply to any such pledge or assignment of a security interest. No such pledge or assignment of a security interest will release a Lender from any of its obligations under this Agreement or substitute any such pledgee or assignee for that Lender as a party to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.6.2 <u>Participations</u>. Any Lender may at any time sell to one or more Persons (other than a Disqualified Lender) participating interests in its Loans, Commitments or other interests under this Agreement (any such Person, a "<u>Participant</u>"). In the event of a sale by a Lender of a participating interest to a Participant, (a) that Lender's obligations under this Agreement will remain unchanged for all purposes; (b) Borrowers and Administrative Agent shall continue to deal solely and directly with that Lender in connection with that Lender's rights and obligations under this Agreement; and (c) all amounts payable by Borrowers will be determined as if that Lender had not sold that participation and will be paid directly to that Lender. No Participant will have any direct or indirect voting rights under this Agreement except with respect to any event described in <u>Section</u><u> </u><u>15.1</u> expressly requiring the unanimous vote of all Lenders or, as applicable, all affected Lenders. Each Lender agrees to incorporate the requirements of the preceding sentence into each participation agreement which that Lender enters into with any Participant. Borrowers agree that if amounts outstanding under this Agreement are due and payable (as a result of acceleration or otherwise), each Participant will be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement to the same extent as if the amount of its participating interest were owing directly to it as a Lender under this Agreement, but that right of set-off is subject to the obligation of each Participant to share with the Lenders, and the Lenders shall share with each Participant, as provided in <u>Section</u><u> </u><u>7.5</u>. Each Participant will be entitled to the benefits of <u>Section</u><u> </u><u>7.6</u> and <u>Section</u><u> </u><u>8</u> (subject to the requirements and limitations therein, including the requirements under <u>Sections</u><u> </u><u>7.6.4</u> and <u>7.6.6</u> (it being understood that the documentation required under such Sections shall be delivered to the participating Lender)) as if it were a Lender (provided that such Participant shall not be entitled to receive any greater payment under <u>Section</u><u> </u><u>7.6</u> or <u>Section</u><u> </u><u>8</u>, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a Change in Law that occurs after the Participant acquired the applicable participation). Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent of the Borrowers, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated interest) of each Participant's interest in the Loans or other obligations under the Loan Documents (the "<u>Participant Register</u>"); *provided* that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including the identity of any Participant or any information relating to a Participant's interest in any commitments, loans, letters of credit or its other obligations under any Loan Document) to any Person except to the extent that such disclosure is necessary to establish that such commitment, loan, letter of credit or other obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.7 <u>Register</u>. Administrative Agent shall maintain, and deliver a copy to Borrower Representative upon written request, a copy of each Assignment Agreement delivered and accepted by it and register (the "<u>Register</u>") for the recordation of names and addresses of the Lenders and the Commitment of each Lender from time to time and whether that Lender is the original Lender or the Assignee. No assignment will be effective unless and until the Assignment Agreement is accepted and registered in the Register. All records of transfer of a Lender's interest in the Register will be conclusive, absent manifest error, as to the ownership of the interests in the Loans. Administrative Agent will not incur any liability of any kind with respect to any Lender with respect to the maintenance of the Register. It is the intention that the Loans and Commitments be treated as registered obligations and in "registered form" within the meaning of Sections 163(f), 871(h)(2) and 881(c)(2) of the Code, and that the right, title, and interest of the Lenders in and to those Loans and Commitments be transferable only in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.8 <u>Governing Law</u>. This Agreement and each Note is a contract made under and governed by the internal laws of the State of New York applicable to contracts made and to be performed entirely within that state, without regard to conflict-of-laws principles.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.9 <u>Confidentiality</u>. As required by federal law and Administrative Agent's policies and practices, Administrative Agent may need to obtain, verify, and record certain customer identification information and documentation in connection with opening or maintaining accounts, or establishing or continuing to provide services. Administrative Agent and each Lender shall use commercially reasonable efforts (equivalent to the efforts Administrative Agent or that Lender applies to maintain the confidentiality of its own confidential information) to maintain as confidential all information provided to them by any Loan Party and designated as confidential, except that Administrative Agent and each Lender may disclose any information as follows: (a) to Persons employed or engaged by Administrative Agent or that Lender or that Lender's Affiliates or Approved Funds in evaluating, approving, structuring, or administering the Loans and the Commitments (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep such information confidential); (b) to any assignee or participant or potential assignee or participant that has agreed to comply with the covenant contained in this <u>Section</u><u> </u><u>15.9</u> (and any such assignee or participant or potential assignee or participant may disclose any such information to Persons employed or engaged by them as described in <u>clause</u><u> </u><u>(a)</u> of this <u>Section</u><u> </u><u>15.9</u>); (c) as required or requested by any federal or state regulatory authority or examiner, or any insurance industry association, or as reasonably believed by Administrative Agent or that Lender to be compelled by any court decree, subpoena, or legal or administrative order or process, but Administrative Agent or that Lender, as applicable, shall (i) use reasonable efforts to give the applicable Loan Party written notice prior to disclosing the information to the extent permitted by that requirement, request, court decree, subpoena, or legal or administrative order or process, and (ii) disclose only that portion of the confidential information as Administrative Agent or that Lender reasonably believes, or as counsel for Administrative Agent or that Lender, as applicable, advises Administrative Agent or that Lender, that it must disclose pursuant to that requirement; (d) as Administrative Agent or that Lender reasonably believes, or on the advice of Administrative Agent's or that Lender's counsel, is required by law (and, if not prohibited by applicable law or regulations, Administrative Agent or such Lender shall use commercially reasonable efforts to give notice to the Loan Parties thereof prior to such disclosure); (e) in connection with the exercise of any right or remedy under the Loan Documents or in connection with any litigation to which Administrative Agent or that Lender is a party (and, if not prohibited by applicable law or regulations, Administrative Agent or such Lender shall use commercially reasonable efforts to give notice to the Loan Parties thereof prior to such disclosure); (f) to any nationally recognized rating agency that requires access to information about a Lender's investment portfolio in connection with ratings issued with respect to that Lender; (g) to that Lender's independent auditors and other professional advisors as to which that information has been identified as confidential; or (h) if that information ceases to be confidential through no fault of Administrative Agent or any Lender. Notwithstanding the foregoing, Borrowers consent to the publication by Administrative Agent or any Lender of a tombstone or similar advertising material relating to the financing transactions contemplated by this Agreement, and Administrative Agent reserves the right to provide to industry trade organizations information necessary and customary for inclusion in league table measurements; *provided*, in each such case, the Borrower Representative is given the opportunity to review the same prior to its release. If any provision of any confidentiality agreement, non-disclosure agreement, or other similar agreement between any Borrower and any Lender conflicts with or contradicts this <u>Section</u><u> </u><u>15.9</u> with respect to the treatment of confidential information, then this <u>Section</u><u> </u><u>15.9</u> will supersede all such prior or contemporaneous agreements and understandings between the parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.10 <u>Severability</u>. Whenever possible each provision of this Agreement is to be interpreted so as to be effective and valid under applicable law, but if any provision of this Agreement is prohibited by or invalid under applicable law, that provision will be ineffective to the extent of that prohibition or invalidity, without invalidating the remainder of that provision or the remaining provisions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.11 <u>Nature of Remedies</u>. All Obligations of the Loan Parties and rights of Administrative Agent and the Lenders expressed in this Agreement or in any other Loan Document are in addition to and not in limitation of those provided by applicable law. No failure to exercise, and no delay in exercising, on the part of Administrative Agent or any Lender, any right, remedy, power, or privilege under this Agreement will operate as a waiver thereof, and no single or partial exercise of any right, remedy, power, or privilege under this Agreement will preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.12 <u>Entire Agreement</u>. This Agreement, together with the other Loan Documents, embodies the entire agreement and understanding among the parties to this Agreement and supersedes all prior or contemporaneous agreements and understandings of all such Persons, verbal or written, relating to the subject matter hereof and thereof (except as relates to the fees described in <u>Sections</u><u> </u><u>5.2</u> and<u> </u><u>5.3</u>) and any prior arrangements made with respect to the payment by the Loan Parties of (or any indemnification for) any fees, costs, or expenses payable to or incurred (or to be incurred) by or on behalf of Administrative Agent or the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.13 <u>Counterparts</u>. This Agreement may be executed in any number of counterparts and by the different parties on separate counterparts. Each such counterpart will be deemed to be an original, but all such counterparts will together constitute but one and the same Agreement. Receipt of an executed signature page to this Agreement by facsimile or other electronic transmission will constitute effective delivery thereof. Electronic records of executed Loan Documents maintained by the Lenders will be deemed to be originals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.14 <u>Successors and Assigns</u>. This Agreement binds Borrowers, the Lenders, Administrative Agent, and their respective successors and permitted assigns and will inure to the benefit of Borrowers, the Lenders, and Administrative Agent and the successors and permitted assigns of the Lenders and Administrative Agent. No other Person is or is intended to be a direct or indirect legal beneficiary of, or have any direct or indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents. No Loan Party may assign or transfer any of its rights or Obligations under this Agreement without the prior written consent of Administrative Agent and each Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.15 <u>Captions</u>. Section captions used in this Agreement are for convenience only and do not affect the construction of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.16 <u>Customer Identification</u><u>—</u><u>USA Patriot Act Notice</u>. Each Lender and Chatham Capital (each for itself and not on behalf of any other party) hereby notifies the Loan Parties that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed into law October 26, 2001 (the "<u>Patriot Act</u>"), it is required to obtain, verify, and record information that identifies the Loan Parties, which information includes the name and address of the Loan Parties and other information that will allow that Lender or Chatham Capital, as applicable, to identify the Loan Parties in accordance with the Patriot Act.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.17 **<u>Indemnification by Loan Parties</u>. In consideration of the execution and delivery of this Agreement by Administrative Agent and the Lenders and the agreement to extend the Commitments provided under this Agreement, each Borrower hereby agrees to indemnify, exonerate, and hold harmless Administrative Agent, each Lender and each of the officers, directors, employees, Affiliates, agents, and Approved Funds of Administrative Agent and each Lender (each, a** "**<u>Lender Party</u>**"**) from and against any and all actions, causes of action, suits, losses, liabilities, damages, and expenses, including all out-of-pocket fees and charges of any counsel and/or other advisors to any Lender Party and all court costs and similar legal expenses (collectively, the** "**<u>Indemnified Liabilities</u>**"**), incurred by the Lender Parties or any of them as a result of, or arising out of, or relating to (a) any tender offer, merger, purchase of capital securities (including, as applicable, the Related Transactions), purchase of assets or other similar transaction financed or proposed to be financed in whole or in part, directly or indirectly, with the proceeds of any of the Loans; (b) the use, handling, release, emission, discharge, transportation, storage, treatment or disposal of any Hazardous Substance at any property owned or leased by any Loan Party; (c) any violation of any applicable Environmental Laws with respect to conditions at any property owned or leased by any Loan Party or the operations conducted thereon; (d) the investigation, cleanup or remediation of offsite locations at which any Loan Party or their respective predecessors are alleged to have directly or indirectly disposed of Hazardous Substances; or (e) the execution, delivery, performance, or enforcement of this Agreement or any other Loan Document by any of the Lender Parties, in each case except for any such Indemnified Liabilities arising on account of (i) the applicable Lender Party**'**s gross negligence or willful misconduct as determined by a final, non-appealable judgment by a court of competent jurisdiction or (ii) any claim solely among Lender Parties (other than claims against Chatham Capital in its capacity or in fulfilling its role as Administrative Agent, lead arranger, or any similar role in connection with the Loans and Commitments hereunder or any Related Transaction or any use or intended use of the proceeds of the Loans) not resulting from any act or omission on the part of any Loan Party. If and to the extent that the foregoing undertaking is unenforceable for any reason, each Borrower hereby agrees to make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities which is permissible under applicable law. All obligations provided for in this <u>Section</u>**<u> </u>**<u>15.17</u> will survive repayment of the Loans, cancellation of the Notes, any foreclosure under, or any modification, release, or discharge of, any or all of the Collateral Documents and termination of this Agreement. Notwithstanding anything herein, in the absence of any Event of Default, the Loan Parties shall only pay for the reasonable and documented legal costs and expenses of one primary legal counsel and, to the extent necessary, one regulatory counsel and one local legal counsel in each relevant jurisdiction and, in the case of a conflict of interest between the Lenders (as determined by the Lenders in their reasonable discretion), one additional legal counsel for the Lenders; provided, that the Loan Parties shall not be required to reimburse Administrative Agent or any Lender for any fees, costs or expenses (including legal costs and expenses) incurred in connection with any litigation, contest, dispute, suit, proceeding or action that arises in connection with a dispute solely among Lender Parties (other than a claim against any Lender solely in its capacity as Administrative Agent, a Lead Arranger or any other similar role in connection with the Credit Agreement or the other Loan Documents). This <u>Section</u>**<u> </u>**<u>15.17</u> shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc., arising from any non-Tax claim.**

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.18 <u>Non-Liability of Lenders</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The relationship between Borrowers on the one hand and the Lenders and Administrative Agent on the other hand is solely that of borrower and lender. Neither Administrative Agent nor any Lender has any fiduciary relationship with or duty to any Loan Party arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship between the Loan Parties, on the one hand, and Administrative Agent and the Lenders, on the other hand, in connection herewith or therewith is solely that of debtor and creditor. Neither Administrative Agent nor any Lender undertakes any responsibility to any Loan Party to review or inform any Loan Party of any matter in connection with any phase of any Loan Party's business or operations. Each Borrower agrees, on behalf of itself and each other Loan Party, that neither Administrative Agent nor any Lender has any liability to any Loan Party (whether sounding in tort, contract or otherwise) for losses suffered by any Loan Party in connection with, arising out of, or in any way related to the transactions contemplated and the relationship established by the Loan Documents, or any act, omission, or event occurring in connection therewith, unless it is determined in a final non-appealable judgment by a court of competent jurisdiction that those losses resulted from the gross negligence or willful misconduct of the party from which recovery is sought.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No Lender Party will be liable for any damages arising from the use by others of any information or other materials obtained through IntraLinks or other similar information transmission systems in connection with this Agreement. No Lender Party will have any liability with respect to, and each Borrower, on behalf of itself and each other Loan Party, hereby waives, releases, and agrees not to sue for, any special, punitive, exemplary, indirect, or consequential damages relating to this Agreement or any other Loan Document or arising out of its activities in connection herewith or therewith (whether before or after the Closing Date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Loan Party acknowledges that it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Loan Documents to which it is a party. No joint venture is created hereby or by the other Loan Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Loan Parties and the Lenders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.19 <u>Forum Selection and Consent to Jurisdiction</u>. Any litigation based hereon, or arising out of, under, or in connection with this Agreement or any other Loan Document, will be brought and maintained exclusively in the courts of the State of New York located in New York County, New York, or in the United States District Court for the Southern District of New York, but nothing in this Agreement will be deemed or operate to preclude Administrative Agent from bringing suit or taking other legal action in any other jurisdiction. Each Borrower hereby expressly and irrevocably submits to the jurisdiction of the courts of the State of New York located in New York County, New York, and of the United States District Court for the Southern District of New York for the purpose of any such litigation as set forth above. Each Borrower further irrevocably consents to the service of process by registered mail, postage prepaid, or by personal service within or without the State of New York. Each Borrower hereby expressly and irrevocably waives, to the fullest extent permitted by applicable law, any objection that it now has or hereafter might have to the laying of venue of any such litigation brought in any such court referred to above and any claim that any such litigation has been brought in an inconvenient forum. Each Canadian Borrower agrees that a final judgment in any legal proceedings arising out of or relating to this Agreement or any other Loan Document may be enforced in any other jurisdiction by suit on such judgment or in any other manner provided by law. Nothing in this <u>Section 15.19</u> shall affect the right of Administrative Agent or any Lender to commence legal proceedings or otherwise sue any Canadian Borrower in any other appropriate jurisdiction, to serve process in any manner permitted by applicable law, or to commence legal proceedings in more than one jurisdiction concurrently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.20 <u>Waiver of Jury Trial</u>. Each Borrower, Administrative Agent, and each Lender hereby waives any right to a trial by jury in any action or proceeding to enforce or defend any rights under this Agreement, any Note, any other Loan Document, and any amendment, instrument, document, or agreement delivered or which might in the future be delivered in connection with this Agreement or therewith or arising from any lending relationship existing in connection with any of the foregoing, and agrees that any such action or proceeding will be tried before a court and not before a jury.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.21 [Reserved].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.22 <u>Acknowledgement and Consent to Bail-In of EEA</u><u> </u><u>Financial Institutions</u>. Notwithstanding anything to the contrary in any Loan Document or in any other agreement, arrangement, or understanding among any such parties, each party hereto acknowledges that any liability of any EEA Financial Institution arising under any Loan Document, to the extent such liability is unsecured, may be subject to the write-down and conversion powers of an EEA Resolution Authority and agrees and consents to, and acknowledges and agrees to be bound by (a) the application of any Write-Down and Conversion Powers by an EEA Resolution Authority to any such liabilities arising hereunder which may be payable to it by any party hereto that is an EEA Financial Institution; and (b) the effects of any Bail-in Action on any such liability, including, if applicable: (i) a reduction in full or in part or cancellation of any such liability; (ii) a conversion of all, or a portion of, such liability into shares or other instruments of ownership in that EEA Financial Institution, its parent undertaking, or a bridge institution that may be issued to it or otherwise conferred on it, and that such shares or other instruments of ownership will be accepted by it in lieu of any rights with respect to any such liability under this Agreement or any other Loan Document; or (iii) the variation of the terms of such liability in connection with the exercise of the write-down and conversion powers of any EEA Resolution Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.23 <u>Erroneous Payments</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Lender and any other party hereto hereby severally agrees that if the Administrative Agent notifies (which such notice shall be conclusive absent manifest error) such Lender or any other Person that has received funds from the Administrative Agent or any of its Affiliates, either for its own account or on behalf of a Lender (each such recipient, a "<u>Payment Recipient</u>") that the Administrative Agent has determined in its sole discretion that any funds received by such Payment Recipient were erroneously transmitted to, or otherwise erroneously or mistakenly received by, such Payment Recipient (whether or not known to such Payment Recipient) or any Payment Recipient receives any payment from the Administrative Agent (or any of its Affiliates) (x) that is in a different amount than, or on a different date from, that specified in a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable, (y) that was not preceded or accompanied by a notice of payment, prepayment or repayment sent by the Administrative Agent (or any of its Affiliates) with respect to such payment, prepayment or repayment, as applicable, or (z) that such Payment Recipient otherwise becomes aware was transmitted or received in error or by mistake (in whole or in part) then, in each case, an error in payment shall be presumed to have been made (any such amounts specified in clauses (i) or (ii) of this <u>Section 15.23(a),</u> whether received as a payment, prepayment or repayment of principal, interest, fees, distribution or otherwise; individually and collectively, an "<u>Erroneous Payment</u>"), then, in each case, such Payment Recipient is deemed to have knowledge of such error at the time of its receipt of such Erroneous Payment; *provided* that nothing in this <u>Section 15.23(a)</u> shall require the Administrative Agent to provide any of the notices specified in clauses (i) or (ii) above. Each Payment Recipient agrees that it shall not assert any right or claim to any Erroneous Payment, and hereby waives any claim, counterclaim, defense or right of set-off or recoupment with respect to any demand, claim or counterclaim by the Administrative Agent for the return of any Erroneous Payments, including without limitation waiver of any defense based on "discharge for value" or any similar doctrine.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the immediately preceding <u>Section</u><u> </u><u>15.23(a)</u>, each Payment Recipient agrees that, in the case of clause (ii) of <u>Section</u><u> </u><u>15.23(a)</u>, it shall promptly notify the Administrative Agent in writing of such occurrence.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In the case of either clause (i) or (ii) of <u>Section</u><u> </u><u>15.23(a)</u>, such Erroneous Payment shall at all times remain the property of the Administrative Agent and shall be segregated by the Payment Recipient and held in trust for the benefit of the Administrative Agent, and upon demand from the Administrative Agent such Payment Recipient shall (or, shall cause any Person who received any portion of an Erroneous Payment on its behalf to), promptly, but in all events no later than one Business Day thereafter, return to the Administrative Agent the amount of any such Erroneous Payment (or portion thereof) as to which such a demand was made in same day funds and in the currency so received, together with interest thereon in respect of each day from and including the date such Erroneous Payment (or portion thereof) was received by such Payment Recipient to the date such amount is repaid to the Administrative Agent at the greater of the Federal Funds Rate and a rate determined by the Administrative Agent in accordance with banking industry rules on interbank compensation from time to time in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In the event that an Erroneous Payment (or portion thereof) is not recovered by the Administrative Agent for any reason, after demand therefor by the Administrative Agent in accordance with immediately preceding <u>Section</u><u> </u><u>15.23(c)</u>, from any Lender that is a Payment Recipient or an Affiliate of a Payment Recipient (such unrecovered amount as to such Lender, an "<u>Erroneous Payment Return Deficiency</u>"), then at the sole discretion of the Administrative Agent and upon the Administrative Agent's written notice to such Lender (i) such Lender shall be deemed to have made a cashless assignment of the full face amount of the portion of its Loans (but not its Commitments) with respect to which such Erroneous Payment was made (the "<u>Erroneous Payment Impacted Loans</u>") to the Administrative Agent or, at the option of the Administrative Agent, the Administrative Agent's applicable lending affiliate (such assignee, the "<u>Administrative Agent Assignee</u>") in an amount that is equal to the Erroneous Payment Return Deficiency (or such lesser amount as the Administrative Agent may specify) (such assignment of the Loans (but not Commitments) of the Erroneous Payment Impacted Loans, the "<u>Erroneous Payment Deficiency Assignment</u>") *plus* any accrued and unpaid interest on such assigned amount, without further consent or approval of any party hereto and without any payment by the Administrative Agent Assignee as the assignee of such Erroneous Payment Deficiency Assignment. Without limitation of its rights hereunder, following the effectiveness of the Erroneous Payment Deficiency Assignment, the Administrative Agent may make a cashless reassignment to the applicable assigning Lender of any Erroneous Payment Deficiency Assignment at any time by written notice to the applicable assigning Lender and upon such reassignment all of the Loans assigned pursuant to such Erroneous Payment Deficiency Assignment shall be reassigned to such Lender without any requirement for payment or other consideration. The parties hereto acknowledge and agree that (1) any assignment contemplated in this <u>Section</u><u> </u><u>15.23(d)</u> shall be made without any requirement for any payment or other consideration paid by the applicable assignee or received by the assignor, (2) the provisions of this <u>Section</u><u> </u><u>15.23(d)</u> shall govern in the event of any conflict with the terms and conditions of <u>Section 15.6</u> and (3) the Administrative Agent may reflect such assignments in the Register without further consent or action by any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each party hereto hereby agrees that (x) in the event an Erroneous Payment (or portion thereof) is not recovered from any Payment Recipient that has received such Erroneous Payment (or portion thereof) for any reason, the Administrative Agent (1) shall be subrogated to all the rights of such Payment Recipient and (2) is authorized to set off, net and apply any and all amounts at any time owing to such Payment Recipient under any Loan Document, or otherwise payable or distributable by the Administrative Agent to such Payment Recipient from any source, against any amount due to the Administrative Agent under this <u>Section 15.23</u> or under the indemnification provisions of this Agreement, (y) the receipt of an Erroneous Payment by a Payment Recipient shall not for the purpose of this Agreement be treated as a payment, prepayment, repayment, discharge or other satisfaction of any Obligations owed by the Borrowers or any other Loan Party, except, in each case, to the extent such Erroneous Payment is, and solely with respect to the amount of such Erroneous Payment that is, comprised of funds received by the Administrative Agent from the Borrowers or any other Loan Party for the purpose of making for a payment on the Obligations and (z) to the extent that an Erroneous Payment was in any way or at any time credited as payment or satisfaction of any of the Obligations, the Obligations or any part thereof that were so credited, and all rights of the Payment Recipient, as the case may be, shall be reinstated and continue in full force and effect as if such payment or satisfaction had never been received.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Each party's obligations under this <u>Section 15.23</u> shall survive the resignation or replacement of the Administrative Agent or any transfer of right or obligations by, or the replacement of, a Lender, the termination of the Commitments or the repayment, satisfaction or discharge of all Obligations (or any portion thereof) under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The provisions of this <u>Section 15.23</u> to the contrary notwithstanding, (i) nothing in this <u>Section 15.23</u> will constitute a waiver or release of any claim of any party hereunder arising from any Payment Recipient's receipt of an Erroneous Payment and (ii) there will only be deemed to be a recovery of the Erroneous Payment to the extent that Administrative Agent has received payment from the Payment Recipient in immediately available funds of the Erroneous Payment Return Deficiency, whether directly from the Payment Recipient, as a result of the exercise by Administrative Agent of its rights of subrogation or set off as set forth above in <u>Section</u><u> </u><u>15.23(e)</u> or as a result of the receipt by Administrative Agent Assignee of a payment of the outstanding principal balance of the Loans assigned to Administrative Agent Assignee pursuant to an Erroneous Payment Deficiency Assignment, but excluding any other amounts in respect thereof (it being agreed that any payments of interest, fees, expenses or other amounts (other than principal) received by Administrative Agent Assignee in respect of the Loans assigned to Administrative Agent Assignee pursuant to an Erroneous Payment Deficiency Assignment shall be the sole property of the Administrative Agent Assignee and shall not constitute a recovery of the Erroneous Payment).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.24 <u>Currency Indemnity</u>. If, for the purpose of obtaining judgment in any court, it is necessary to convert a sum due under this Agreement or any other Loan Document in one currency (the "<u>Original Currency</u>") into another currency (the "<u>Other Currency</u>"), each Canadian Borrower agrees, to the fullest extent that it may effectively do so, that the rate of exchange used shall be that at which, in accordance with normal banking procedures, Administrative Agent could purchase the Original Currency with the Other Currency on the Business Day preceding the day on which final judgment is given. The obligation of each Canadian Borrower in respect of any sum due to Administrative Agent or any Lender under this Agreement or any other Loan Document shall, notwithstanding any judgment in an Other Currency, be discharged only to the extent that on the Business Day following receipt by Administrative Agent or such Lender of any sum adjudged to be so due in the Other Currency, Administrative Agent or such Lender may, in accordance with normal banking procedures, purchase the Original Currency with such Other Currency. If the amount of the Original Currency so purchased is less than the sum originally due to Administrative Agent or such Lender in the Original Currency, such Canadian Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify Administrative Agent or such Lender against such loss. For purposes of this paragraph, "rate of exchange" means the spot rate of exchange in the London foreign exchange market for the purchase of the Original Currency with the Other Currency and includes any premiums and costs of exchange payable in connection with the purchase of, or conversion into, the Original Currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15.25 <u>Investment Unit</u>. Chatham Capital and Borrowers mutually agree that (a) the aggregate principal amount of Term Loans issued by Chatham Capital and the Warrant constitute an "investment unit" for purposes of Section 1273(c)(2) of the Code, (b) for purpose of the allocation of the issue price of such investment unit among the Term Loan issued by Chatham Capital and the Warrant in accordance with Section 1273(c)(2) of the Code and Treasury Regulation Section 1.1273-2(h), $240,000 shall be allocated to the Warrant, and (c) neither Chatham Capital nor any Borrower shall take any position inconsistent with such allocation in any U.S. federal, state or local tax return unless otherwise required by a tax authority or court.

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SECTION 16 JOINT AND SEVERAL LIABILITY

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.1 <u>Applicability of Terms</u>. Each Borrower and each Person comprising a Borrower hereby acknowledges and agrees that all of the representations, warranties, covenants, obligations, conditions, agreements, and other terms contained in this Agreement are applicable to and binding upon each Person comprising a Borrower unless expressly otherwise stated in this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.2 <u>Joint and Several Liability</u>. Each Borrower is jointly and severally liable for all of the Obligations of each other Borrower, regardless of which Borrower actually receives the proceeds or other benefits of the Loans or other extensions of credit under this Agreement or the manner in which Borrowers, Administrative Agent, or any Lender accounts therefor in their respective books and records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.3 <u>Benefits and Best Interests</u>. Each Borrower acknowledges that it will enjoy significant benefits from the business conducted by each other Borrower because of, *inter alia*, their combined ability to bargain with other Persons including without limitation their ability to receive the Loans and other credit extensions under this Agreement and the other Loan Documents which would not have been available to any Borrower acting alone. Each Borrower has determined that it is in its best interest to procure the credit facilities contemplated under this Agreement, with the credit support of each other Borrower as contemplated by this Agreement and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.4 <u>Corporate Benefit and Financial Assistance</u>. Each Borrower represents and warrants that (a) it has received adequate consideration for its obligations hereunder and derives, and expects to continue to derive, direct or indirect benefit from the credit facility established pursuant to this Agreement and the availability of the Loans and other extensions of credit hereunder; (b) the execution, delivery, and performance of this Agreement and the other Loan Documents to which it is a party will not violate any applicable law, rule, or regulation governing financial assistance or restricting the granting of security in connection with the acquisition of its own shares or the shares of its direct or indirect parent entity; and (c) its board of directors (or equivalent governing body) has determined, in the exercise of its business judgment, that serving as a co-borrower under this Agreement and the other Loan Documents is in the best interests of such Borrower in light of the direct and indirect benefits to be derived from the credit facility established hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.5 <u>Accommodations</u>. Each of Administrative Agent and the Lenders have advised each Borrower that it is unwilling to enter into this Agreement and the other Loan Documents and make available the credit facilities extended hereby or thereby to any Borrower unless each Borrower agrees, among other things, to be jointly and severally liable for the due and proper payment of the Obligations of each other Borrower. Each Borrower has determined that it is in its best interest and in pursuit of its purposes that it so induce the Lenders to extend credit pursuant to this Agreement and the other documents executed in connection with this Agreement (a) because of the desirability to each Borrower of the credit facilities under this Agreement and the interest rates and the modes of borrowing available under this Agreement and under those other documents; (b) because each Borrower might engage in transactions jointly with other Borrowers; and (c) because each Borrower might require, from time to time, access to funds under this Agreement for the purposes set forth in this Agreement. Each Borrower, individually, expressly understands, agrees, and acknowledges that the credit facilities contemplated under this Agreement would not be made available on the terms of this Agreement in the absence of the collective credit of all the Borrowers, and the joint and several liability of all the Borrowers. Accordingly, each Borrower acknowledges that the benefit of the accommodations made under this Agreement to the Borrowers, as a whole, constitutes reasonably equivalent value, regardless of the amount of the indebtedness actually borrowed by, advanced to, or the amount of credit provided to, or the amount of collateral provided by, any one Borrower.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.6 <u>Maximum Amount</u>. To the extent that applicable law otherwise would render the full amount of the joint and several obligations of any Borrower under this Agreement and under the other Loan Documents invalid or unenforceable, that Person's obligations under this Agreement and under the other Loan Documents will be limited to the maximum amount that does not result in any such invalidity or unenforceability, but each Borrower's obligations under this Agreement and under the other Loan Documents will be presumptively valid and enforceable to their fullest extent in accordance with the terms hereof or thereof, as if this <u>Section</u><u> </u><u>16</u> were not a part of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.7 <u>Joint Liability Payments</u>. To the extent that any Borrower makes a payment under this <u>Section</u><u> </u><u>16</u> of all or any of the Obligations (a "<u>Joint Liability Payment</u>") that, taking into account all other Joint Liability Payments then previously or concurrently made by any other Borrower, exceeds the amount that Borrower would otherwise have paid if each Borrower had paid the aggregate Obligations satisfied by those Joint Liability Payments in the same proportion that that Person's Allocable Amount (as determined immediately prior to those Joint Liability Payments) bore to the aggregate Allocable Amounts of each Borrower as determined immediately prior to the making of those Joint Liability Payments, then, following payment in full in cash of the Obligations (other than contingent indemnification Obligations not then asserted) and the termination of the Commitments, that Borrower will be entitled to receive contribution and indemnification payments from, and be reimbursed by, each other Borrower for the amount of that excess, pro rata based upon their respective Allocable Amounts in effect immediately prior to the applicable Joint Liability Payments. As of any date of determination, the "<u>Allocable Amount</u>" of any Borrower is equal to the maximum amount of the claim that could then be recovered from that Borrower under this <u>Section</u><u> </u><u>16</u> without rendering that claim voidable or avoidable under § 548 of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance Act, or similar statute or common law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.8 <u>Financial Condition</u>. Each Borrower assumes responsibility for keeping itself informed of the financial condition of each other Borrower, and any and all endorsers and/or guarantors of any instrument or document evidencing all or any part of each other Borrower's Obligations, and of all other circumstances bearing upon the risk of nonpayment by each other Borrower of its Obligations, and each Borrower agrees that neither Administrative Agent nor any Lender has or will have any duty to advise that Borrower of information known to Administrative Agent or any Lender regarding any such condition or any such circumstances or to undertake any investigation not a part of its regular business routine. If Administrative Agent or any Lender, in its sole discretion, undertakes at any time or from time to time to provide any such information to a Borrower, neither Administrative Agent nor any Lender will be under any obligation to update any such information or to provide any such information to that Borrower or any other Person on any subsequent occasion.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.9 <u>Administrative Agent Authorizations</u>. Subject to <u>Section</u><u> </u><u>15.1</u>, Administrative Agent is hereby authorized to, at any time and from time to time, to do any and all of the following: (a) in accordance with the terms of this Agreement, renew, extend, accelerate, or otherwise change the time for payment of, or other terms relating to, Obligations incurred by any Borrower or any other Loan Party, otherwise modify, amend or change the terms of any promissory note or other agreement, document or instrument now or hereafter executed by any Borrower or any other Loan Party and delivered to Administrative Agent or any Lender; (b) accept partial payments on an Obligation incurred by any Borrower; (c) take and hold security or collateral for the payment of an Obligation incurred by any Borrower under this Agreement or for the payment of any guaranties of an Obligation incurred by any Borrower or other liabilities of any Borrower and exchange, enforce, waive, and release any such security or collateral; (d) apply any such security or collateral and direct the order or manner of sale thereof as Administrative Agent determines in accordance with the terms of this Agreement and the other Loan Documents; and (e) settle, release, compromise, collect, or otherwise liquidate an Obligation incurred by any Borrower and any security or collateral therefor in any manner, without affecting or impairing the obligations of any other Borrower. In accordance with the terms of this Agreement, Administrative Agent has the exclusive right to determine the time and manner of application of any payments or credits, whether received from a Borrower or any other source, and any such determination will be binding on each Borrower. In accordance with the terms of this Agreement, all such payments and credits may be applied, reversed and reapplied, in whole or in part, to any of an Obligation incurred by any Borrower as Administrative Agent determines in its sole discretion without affecting the validity or enforceability of the Obligations of any other Borrower. Nothing in this <u>Section</u><u> </u><u>16</u> modifies any right of any Borrower or any Lender to consent to any amendment or modification of this Agreement or the other Loan Documents in accordance with the terms hereof or thereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.10 <u>Unconditional Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Each Borrower hereby agrees that, except as otherwise expressly provided in this Agreement, its obligations under this Agreement are and will be unconditional, irrespective of (i) the absence of any attempt to collect an Obligation incurred by any Borrower from any Borrower or any guarantor or other action to enforce the same; (ii) failure by Administrative Agent to take any steps to perfect and maintain its security interest in, or to preserve its rights to, any security or collateral for an Obligation incurred by any Borrower; (iii) any Insolvency Proceeding by or against any Borrower or any other Loan Party, or Administrative Agent's or any Lender's election in any such proceeding of the application of § 1111(b)(2) of the Bankruptcy Code; (iv) any borrowing or grant of a security interest by any Borrower as debtor-in-possession under § 364 of the Bankruptcy Code; (v) the disallowance, under § 502 of the Bankruptcy Code, of all or any portion of Administrative Agent's or any Lender's claim(s) for repayment of any of an Obligation incurred by any Borrower; or (vi) any other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor unless that legal or equitable discharge or defense is that of a Borrower in its capacity as a Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without limiting the generality of the foregoing, each Borrower expressly waives, as applicable and to the fullest extent permitted by applicable law, (i) any defense arising under the benefits of excussion (*beneficio de excusi*ó*n*) and division (*beneficio de divisi*ó*n*) under the Puerto Rico Civil Code, or any analogous civil law doctrine of any other jurisdiction, (ii) any right to require Administrative Agent or any Lender to proceed against any other Borrower, any guarantor, or any other Person, or to proceed against or exhaust any security or collateral, before enforcing its rights and remedies against such Borrower, and (iii) any right to require the marshaling of assets or collateral, including any right to require Administrative Agent or any Lender to marshal any assets or collateral in favor of such Borrower or any other Person or against or in payment of any or all of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.11 <u>Notices</u>. Any notice given by Borrower Representative under this Agreement will constitute and be deemed to be notice given by all Borrowers, jointly and severally. Notice given by Administrative Agent or any Lender to Borrower Representative under this Agreement or pursuant to any other Loan Documents in accordance with the terms of this Agreement or of any applicable other Loan Document will constitute notice to each Borrower. The knowledge of any Borrower will be imputed to all Borrowers and any consent by Borrower Representative or any Borrower will constitute the consent of, and will bind, all Borrowers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.12 <u>No Impairment of Obligations or Limitation of Liability</u>. This <u>Section</u><u> </u><u>16</u> is intended only to define the relative rights of Borrowers and nothing set forth in this <u>Section</u><u> </u><u>16</u> is intended to or will impair the obligations of Borrowers, jointly and severally, to pay any amounts as and when the same become due and payable in accordance with the terms of this Agreement or any other Loan Documents. Nothing contained in this <u>Section</u><u> </u><u>16</u> limits the liability of any Borrower to pay the credit facilities made directly or indirectly to that Borrower and accrued interest, fees, and expenses with respect thereto for which that Borrower is primarily liable.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.13 <u>Rights of Contribution and Indemnification</u>. The parties to this Agreement acknowledge that the rights of contribution and indemnification under this <u>Section</u><u> </u><u>16</u> constitute assets of each Borrower to which any such contribution and indemnification is owing. The rights of any indemnifying Borrower against the other Borrowers under this <u>Section</u><u> </u><u>16</u> will be exercisable upon the Payment in Full of the Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16.14 <u>Subrogation</u>. No payment made by or for the account of a Borrower, including, without limitation, (a) a payment made by that Borrower on behalf of an Obligation of another Borrower or (b) a payment made by any other Person under any guaranty, will entitle that Borrower, by subrogation or otherwise, to any payment from that other Borrower or from or out of property of that other Borrower and that Borrower shall not exercise any right or remedy against that other Borrower or any property of that other Borrower by reason of any performance of that Borrower of its joint and several obligations under this Agreement, until, in each case, the termination of the Commitments and the Payment in Full of the Obligations.

SECTION 17 APPOINTMENT OF BORROWER REPRESENTATIVE.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.1 <u>Appointment</u>. Each Borrower hereby irrevocably (until Payment in Full or a change pursuant to <u>Section</u><u> </u><u>17.4</u>) appoints and constitutes Borrower Representative as its agent to request and receive the proceeds of advances in respect of the Loans (and to otherwise act on behalf of that Borrower pursuant to this Agreement and the other Loan Documents) from the Lenders in the name or on behalf of that Borrower. Administrative Agent may disburse those proceeds to the bank account of Borrower Representative (or any other Borrower) without notice to any other Borrower or any other Loan Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.2 <u>Additional Appointments</u>. Each Borrower hereby irrevocably (until Payment in Full or a change pursuant to <u>Section</u><u> </u><u>17.4</u>) appoints and constitutes the Borrower Representative as its agent to (a) receive statements of account and all other notices from Administrative Agent with respect to the Obligations or otherwise under or in connection with this Agreement and the other Loan Documents, (b) execute and deliver Compliance Certificates and all other notices, certificates and documents to be executed and/or delivered by any Borrower under this Agreement or the other Loan Documents; and (c) otherwise act on behalf of that Borrower pursuant to this Agreement and the other Loan Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.3 <u>Reliance</u>. The authorizations contained in this <u>Section 17</u> are coupled with an interest and are irrevocable until Payment in Full or a change pursuant to <u>Section</u><u> </u><u>17.4</u>, and Administrative Agent may rely on any notice, request, information supplied by the Borrower Representative, every document executed by the Borrower Representative, every agreement made by the Borrower Representative or other action taken by the Borrower Representative in respect of any Borrower or other Loan Party as if the same were supplied, made or taken by that Borrower or Loan Party. Without limiting the generality of the foregoing, the failure of one or more Borrowers or other Loan Parties to join in the execution of any writing in connection with this Agreement will not relieve any Borrower or other Loan Party from obligations in respect of that writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17.4 <u>Termination or Change of Borrower Representative</u>. No purported termination of or change in the appointment of Borrower Representative as agent will be effective without the prior written consent of Administrative Agent.

[Signature pages follow]

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The parties are signing this Credit Agreement as of the date stated in the introductory clause.

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| |
|:---|
| TRACK GROUP, INC., |
| as a Borrower |
| By: |
| Name: |
| Title: |

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Signature page to Credit Agreement

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| |
|:---|
| Each of the following, as a Borrower: |
| TRACK GROUP AMERICAS, INC., |
| a Utah corporation |
| By: |
| Name: |
| Title: |
| TRACK GROUP – PUERTO RICO, INC., |
| a Puerto Rico corporation |
| By: |
| Name: |
| Title: |
| EMERGE MONITORING, INC., |
| a Florida corporation |
| By: |
| Name: |
| Title: |
| EMERGE MONITORING II LLC, |
| a Florida limited liability company |
| By: |
| Name: |
| Title: |
| INTEGRATED MONITORING SYSTEMS, LLC, |
| a Colorado limited liability company |
| By: |
| Name: |
| Title: |

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Signature page to Credit Agreement

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| |
|:---|
| TRACK GROUP ANALYTICS LIMITED, |
| a Canada corporation, as a Borrower |
| By: |
| Name: |
| Title: |

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Signature page to Credit Agreement

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| |
|:---|
| CHATHAM CAPITAL MANAGEMENT, LLC, |
| as Administrative Agent |
| By: |
| Name: |
| Title: |

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Signature page to Credit Agreement

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| |
|:---|
| CHATHAM CAPITAL MANAGEMENT, LLC, |
| not individually but as agent for |
| CHATHAM INVESTMENT FUND VI A, L.P., |
| as a Lender |
| By: |
| Name: |
| Title: |
| CHATHAM CAPITAL MANAGEMENT, LLC, |
| not individually but as agent for |
| CHATHAM INVESTMENT FUND VI QP, L.P., |
| as a Lender |
| By: |
| Name: |
| Title: |

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Signature page to Credit Agreement

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ANNEX A

**<u>LENDERS AND PRO RATA SHARES</u>**

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| <u>Lender</u> | Revolving<br> <u>Commitment</u> | Pro Rata<br> <u>Share</u> | Term A Loan<br> <u>Commitment</u> | Pro Rata<br> <u>Share</u> | Interest Line Loan<br> <u>Commitment</u> | Pro Rata<br> <u>Share</u> | Total<br> <u>Commitment</u> | Pro Rata<br> <u>Share</u> |
| Chatham Investment Fund VI A, L.P., and Chatham Investment Fund VI QP, L.P. | $2000000.00 | 100.0000000% | $21000000.00 | 100.0000000% | $1000000.00 | 100.0000000% | $24000000.00 | 100.0000000% |
| TOTALS | $2000000.00 | 100.0000000% | $21000000.00 | 100.0000000% | $1000000.00 | 100.0000000% | $24000000.00 | 100.0000000% |

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Annex A to Credit Agreement

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ANNEX B

**<u>ADDRESSES FOR NOTICES</u>**

Borrowers and Borrower Representative:

Track Group, Inc.<br> 200 E. 5th Avenue, Suite 100<br> Naperville, IL 60563<br> Attention: Derek Cassell, Chief Executive Officer<br> E-mail: derek.cassell@trackgrp.com

with a mandatory copy (which will not constitute notice) to:

Winston & Strawn LLP<br> 300 N. LaSalle Street, Suite 4400<br> Chicago, IL 60654<br> Attention: Oscar David and Joseph Devaney<br> E-mail: odavid@winston.com; jdevaney@winston.com

Annex B to Credit Agreement

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Administrative Agent:

CHATHAM CAPITAL MANAGEMENT, LLC,<br> as Administrative Agent:

c/o Chatham Capital<br> 1372 Peachtree Street NE<br> Atlanta, GA 30309<br> Attention: Track Group Portfolio Manager<br> E-mail:<u> </u>

with a mandatory copy (which will not constitute notice) to:

McGuireWoods LLP<br> 77 W. Wacker Drive, Suite 4100<br> Chicago, Illinois 60601-1818<br> Attention: Clayton Stallbaumer<br> E-mail: cstallbaumer@mcguirewoods.com

Annex B to Credit Agreement

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EXHIBIT A

**<u>FORM OF NOTE</u>**

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| | |
|:---|:---|
| $____________________ | _______,_______ |

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The undersigned, for value received, jointly and severally, promise to pay to ____________________ (the "<u>Lender</u>") at the principal office of CHATHAM CAPITAL MANAGEMENT, LLC, a Delaware limited liability company (the "<u>Administrative Agent</u>"), in Atlanta, Georgia, the principal amount of $____________________ or, if less, the aggregate unpaid amount of all [Revolving][Term A][Interest Line] Loans made to the undersigned by the Lender pursuant to the Credit Agreement referred to below (as shown on the schedule attached hereto (and any continuation thereof), if any, or in the records of the Lender), which principal amount is payable on the dates set forth in the Credit Agreement.

The undersigned, jointly and severally, further promise to pay interest on the unpaid principal amount of each such Loan from the date of that Loan until that Loan is paid in full, payable at the rate(s) and at the time(s) set forth in the Credit Agreement. Payments of both principal and interest are to be made in lawful money of the United States of America.

This Note evidences indebtedness incurred under, and is subject to the terms and provisions of, the Credit Agreement dated as of April 30, 2026 (as amended, restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among the undersigned, certain financial institutions (including the Lender), and Administrative Agent, to which Credit Agreement reference is made for a statement of the terms and provisions under which this Note may or must be paid prior to its due date or its due date accelerated. Terms used but not otherwise defined in this Note are used in this Note as defined in the Credit Agreement.

[Signature pages follow]

Exhibit A to Credit Agreement

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This Note is made under and governed by the laws of the State of New York applicable to contracts made and to be performed entirely within that state.

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| |
|:---|
| TRACK GROUP, INC., |
| as a Borrower<sup>1</sup> |
| By: |
| Name: |
| Title: |

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<sup>1</sup> Conform with final Borrower list.

Exhibit A to Credit Agreement

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| |
|:---|
| Each of the following, as a Borrower: |
| TRACK GROUP AMERICAS, INC., |
| a Utah corporation |
| By: |
| Name: |
| Title: |

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| |
|:---|
| TRACK GROUP – PUERTO RICO, INC., |
| a Puerto Rico corporation |
| By: |
| Name: |
| Title: |

---

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| |
|:---|
| EMERGE MONITORING, INC., |
| a Florida corporation |
| By: |
| Name: |
| Title: |

---

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| |
|:---|
| EMERGE MONITORING II LLC, |
| a Florida limited liability company |
| By: |
| Name: |
| Title: |

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| |
|:---|
| INTEGRATED MONITORING SYSTEMS, LLC, |
| a Colorado limited liability company |
| By: |
| Name: |
| Title: |

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Exhibit A to Credit Agreement

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| |
|:---|
| TRACK GROUP ANALYTICS LIMITED, |
| a Canada corporation, as a Borrower |
| By: |
| Name: |
| Title: |

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Exhibit A to Credit Agreement

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EXHIBIT B

**<u>FORM OF COMPLIANCE CERTIFICATE</u>**

To: CHATHAM CAPITAL MANAGEMENT, LLC, as Administrative Agent<br> c/o Chatham Capital<br> 1372 Peachtree Street NE<br> Atlanta, GA 30309<br> Attention: Track Group Portfolio Manager

Please refer to the Credit Agreement dated as of April 30, 2026 (as amended, restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among Track Group, Inc., a Delaware corporation (the "<u>Company</u>"); each of the Affiliates of the Company that are or may from time to time become parties hereto (together with the Company, the "<u>Borrowers</u>"); the financial institutions that are or may from time to time become parties hereto (together with their respective successors and assigns, the "<u>Lenders</u>"); and (v) CHATHAM CAPITAL MANAGEMENT, LLC, a Delaware limited liability company, as Administrative Agent. Terms used but not otherwise defined in this Compliance Certificate are used in this Compliance Certificate as defined in the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I. <u>Reports</u>. Enclosed with this Compliance Certificate is a copy of the **[annual/monthly]** report of the Company and its Subsidiaries as at _____________, ____ (the " <u>Computation Date</u> ") required pursuant to <u>Section</u> <u> </u>  **<u>[10.1.1</u> ][ <u>10.1.2</u> ]** of the Credit Agreement, which report fairly presents in all material respects the financial condition and results of operations **[(subject to the absence of footnotes and to normal year-end adjustments)]** of the Company and its Subsidiaries as of the Computation Date and has been prepared in accordance with GAAP consistently applied.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;II. <u>Financial Tests</u>. Borrower Representative hereby certifies and warrants to you that the following is a true and correct computation as at the Computation Date of the following ratios and/or financial restrictions and/or financial calculations contained in the Credit Agreement:

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| | | | |
|:---|:---|:---|:---|
| A. | **<u>Section 11.12.1</u>** – **Minimum EBITDA** | **<u>Section 11.12.1</u>** – **Minimum EBITDA** |  |
|  | 1. | Consolidated Net Income | $________ |
|  | 2. | To the extent deducted in determining that Consolidated Net Income, without duplication, the sum of the following: |  |
|  | (a) | Interest Expense (net of interest income for that period of the Company and its Subsidiaries) | $________ |
|  | (b) | federal, state, local and foreign income tax expense | $________ |
|  | (c) | depreciation and amortization | $________ |
|  | (d) | unusual or non-recurring expenses or losses, whether cash or non-cash, incurred during that period relating to restructuring charges, integration costs, severance, retention, relocation, and similar items, so long as the aggregate amount of all such expenses and losses does not exceed $1,000,000 in any Computation Period | $________ |

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Exhibit B to Credit Agreement

Exhibit B to Credit Agreement

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(e) other non-cash unusual or non-cash non-recurring expenses or losses (including, without limitation, non-cash adjustments due to changes in accounting and foreign currency translation losses and adjustments) and other non-cash charges or impairments (in each case as determined in accordance with GAAP) $________

(f) reasonable and documented out-of-pocket fees, costs, and expenses paid during that period in connection with the negotiation, execution, and delivery of this Agreement and the other Loan Documents and the consummation of the Related Transactions and the transactions contemplated by this Agreement and the other Loan Documents (including, without limitation, in connection with enacting governance enhancements and related items that will be incurred outside the ordinary course of business), so long as (A) those fees, costs, and expenses were paid not later than 180 days after the Closing Date, and (B) the aggregate amount of all such fees, costs, and expenses, whenever incurred or paid, does not exceed $8,763,000 $________

(g) solely for purposes of determining compliance with the covenants in <u>Section</u> <u> </u> <u>11.12</u>, the amount of any Financial Covenant Cure Amount $________

(h) expenses, costs, and fees incurred in connection with any Permitted Acquisition, whether or not consummated, so long as, in the case of unconsummated Permitted Acquisitions, the aggregate amount of all such expenses, costs, and fees does not exceed $750,000 in any Computation Period $________

(i) transaction-related fees, costs, and expenses (including all fees, costs, and expenses paid to the Administrative Agent and Lenders) incurred in connection with the negotiation, documentation, and closing of amendments or modifications to, or waivers or consents under, the Credit Agreement and the other Loan Documents $________

(j) expenses, costs, and fees incurred in connection with the purchase of the Director and Officer Tail Policy, so long as (A) those expenses, costs, and fees are incurred on or prior to the one-year anniversary of the Closing Date and (B) the aggregate amount of all such expenses, costs and fees does not exceed $500,000 in any Computation Period $________

(k) any other items approved by the Administrative Agent in its sole discretion $________

3. To the extent included in determining Consolidated Net Income, without duplication, non-cash gains or profits $________

4. EBITDA (result of (1) plus (2) minus (3)) $________

5. Minimum Required $________

Exhibit B to Credit Agreement

Exhibit B to Credit Agreement

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| | | | |
|:---|:---|:---|:---|
| B. | **<u>Section 11.12.2</u>** – **Minimum Fixed Charge Coverage Ratio<sup>2</sup>** | **<u>Section 11.12.2</u>** – **Minimum Fixed Charge Coverage Ratio<sup>2</sup>** |  |
|  | 1. | EBITDA (from A.4 above) | $________ |
|  | 2. | The sum of: |  |
|  | (a) | income taxes paid or payable in cash by the Company and its Subsidiaries (without duplication) (other than any COD Tax) | $________ |
|  | (b) | all unfinanced Capital Expenditures | $________ |
|  | 3. | Result of (1) minus (2) | $________ |
|  | 4. | The sum of: |  |
|  | (a) | cash Interest Expense | $________ |
|  | (b) | scheduled required payments of principal of Debt (including the Term Loans but excluding the Revolving Loans so long as the Revolving Commitments have not been terminated or reduced in connection therewith) | $________ |
|  | (c) | Restricted Payments actually made in cash during that Computation Period (other than (A) Restricted Payments made pursuant to <u>clause</u><u> </u><u>(i)</u>, <u>(ii)</u>, or <u>(iii)</u> of <u>Section</u><u> </u><u>11.3</u> of the Credit Agreement and (B) Restricted Payments made pursuant to <u>clause</u><u> </u><u>(vi)</u> of <u>Section</u><u> </u><u>11.3</u> of the Credit Agreement to the extent such payments have been deducted as an expense in the determination of EBITDA for such Computation Period) | $________ |
|  | 5. | Ratio of (3) to (4) | ____ to 1.00 |
|  | 6. | Minimum Required | 1.20 to 1.00 |

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<sup>2</sup> For any Computation Period ending before the first anniversary of the Closing Date, the amount of each component of subclause B.2(b) and subclauses B.4(a) and B.4(b) as of the applicable date of determination will be determined on an annualized basis by multiplying the actual amount of that component for the period from (not including) the Closing Date to (and including) that date of determination by 365 and dividing by the number of days from (not including) the Closing Date to (and including) that date of determination. For the avoidance of doubt, no payments made by any Loan Party to purchase the Director and Officer Tail Policy shall be included in clause B.4 of the first sentence of this definition for purposes of determining the Fixed Charge Coverage Ratio so long as the aggregate amount of all such payments does not exceed $500,000.

Exhibit B to Credit Agreement

Exhibit B to Credit Agreement

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| | | | |
|:---|:---|:---|:---|
| **C.** | **<u>Section 11.12.3</u>** – **Maximum Total Debt to EBITDA Ratio** | **<u>Section 11.12.3</u>** – **Maximum Total Debt to EBITDA Ratio** |  |
|  | 1. | Total Debt (all Debt of the Company and its Subsidiaries, determined on a consolidated basis, excluding (a) contingent obligations in respect of Contingent Liabilities (except to the extent constituting (i) Contingent Liabilities in respect of Debt of a Person other than any Loan Party, or (ii) Contingent Liabilities in respect of undrawn letters of credit), (b) Hedging Obligations, and (c) Debt of any Borrower to any other Loan Party and Debt of any Subsidiary to any Borrower or to any other Subsidiary) | $________ |
|  | 2. | EBITDA (from A.4 above)<sup>3</sup> | $________ |
|  | 3. | Ratio of (1) to (2) | ____ to 1.00 |
|  | 4. | Maximum allowed | ____ to 1.00 |
| **E.** | **<u>Section 11.12.4</u>** – **Maximum Unfinanced Capital Expenditures** | **<u>Section 11.12.4</u>** – **Maximum Unfinanced Capital Expenditures** |  |
|  | 1. | Unfinanced Capital Expenditures for the applicable period | $________ |
|  | 2. | Maximum Permitted Unfinanced Capital Expenditures | $________ |

---

------

<sup>3</sup> Notwithstanding the foregoing, for purposes of the Credit Agreement and any other Loan Document, EBITDA of the Company and its Subsidiaries for each pre-closing period listed below shall be deemed to equal the amount listed opposite such period:

---

| | |
|:---|:---|
| **Month Ending** | **Amount** |
| March 31, 2025 | $581737 |
| April 30, 2025 | $470763 |
| May 31, 2025 | $428528 |
| June 30, 2025 | $845216 |
| July 31, 2025 | $100121 |
| August 31, 2025 | $619291 |
| September 30, 2025 | $804912 |
| October 31, 2025 | $362716 |
| November 30, 2025 | $424774 |
| December 31, 2025 | $431663 |
| January 31, 2026 | $514530 |
| February 28, 2026 | $430720 |

---

Exhibit B to Credit Agreement

Exhibit B to Credit Agreement

------

---

| | | | |
|:---|:---|:---|:---|
| **F.** | **<u>Section 11.12.5</u>** <u>–</u> **<u>Minimum Liquidity</u>** | **<u>Section 11.12.5</u>** <u>–</u> **<u>Minimum Liquidity</u>** |  |
|  | 1. | Liquidity (determined on a 30-day average basis) | $________ |
|  | 2. | Minimum Required | $1000000 |
| **G.** | **<u>Section 6.2.2(b)(v)</u>** – **Excess Cash Flow** | **<u>Section 6.2.2(b)(v)</u>** – **Excess Cash Flow** |  |
|  | 1. | EBITDA (from A.4 above) | $________ |
|  | 2. | scheduled repayments of principal of Term Loans and other Funded Debt (other than payments of revolving Debt that do not include a dollar-for-dollar commitment reduction) permitted under the Credit Agreement | $________ |
|  | 3. | voluntary prepayments of the Term Loans pursuant to <u>Section</u><u> </u><u>6.2.1</u> of the Credit Agreement | $________ |
|  | 4. | cash payments permitted under the Credit Agreement and made with respect to unfinanced Capital Expenditures | $________ |
|  | 5. | income taxes paid in cash by the Loan Parties (without duplication) net of refunds actually received in cash by the Loan Parties |  |
|  | 6. | cash Interest Expense (net of interest income) of the Loan Parties | $________ |
|  | 7. | all other items paid in cash that are added back to EBITDA | $________ |
|  | 8. | Sum of (2) through (7) | $________ |
|  | 9. | Excess Cash Flow (result of (1) *minus* (8)) | $________ |
|  | 10. | ECF Percentage *multiplied by* (9) | $________ |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;III. <u>Defaults; Events of Default</u>. Borrower Representative further certifies to you that no Default or Event of Default has occurred and is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IV. <u>Management Discussion</u>. Borrower Representative further certifies that attached to this Compliance Certificate as Annex I is a written statement of Borrower Representative's management setting forth a discussion of the Company's and its Subsidiaries' financial condition, changes in financial condition, and results of operations.

Exhibit B to Credit Agreement

Exhibit B to Credit Agreement

------

Borrower Representative has caused this Compliance Certificate to be executed and delivered by its duly authorized officer on _________, ____.

---

| |
|:---|
| TRACK GROUP, INC., |
| as Borrower Representative on behalf of Borrowers |
| By: |
| Name: |
| Title: |

---

Exhibit B to Credit Agreement

Exhibit B to Credit Agreement

------

ANNEX I TO COMPLIANCE CERTIFICATE

<u>MANAGEMENT DISCUSSION</u>

See attached.

Exhibit B to Credit Agreement

Exhibit B to Credit Agreement

------

EXHIBIT C

**<u>FORM OF ASSIGNMENT AND ASSUMPTION</u>**

This Assignment and Assumption (this "<u>Assignment and Assumption</u>") is dated as of the Effective Date set forth below and is entered into by and between [the][each]<sup>4</sup> Assignor identified in <u>item</u><u> </u><u>1</u> below ([the][each, an] "<u>Assignor</u>") and [the][each]<sup>5</sup> Assignee identified in <u>item</u><u> </u><u>2</u> below ([the][each, an] "<u>Assignee</u>"). [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]<sup>6</sup> under this Assignment and Assumption are several and not joint.]<sup>7</sup> Capitalized terms used but not defined Assignment and Assumption have the meanings given to them in the Credit Agreement identified below (the "<u>Credit Agreement</u>"), receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in <u>Annex</u><u> </u><u>1</u> attached to this Assignment and Assumption are hereby agreed to and incorporated in this Assignment and Assumption by reference and made a part of this Assignment and Assumption as if set forth in full in this Assignment and Assumption.

For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of the Effective Date inserted by Administrative Agent as contemplated below (i) all of [the Assignor's][the respective Assignors'] rights and obligations in [its capacity as a Lender][their respective capacities as Lenders] under the Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage interest identified below of all of those outstanding rights and obligations of [the Assignor][the respective Assignors] under the respective facilities identified below and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a Lender)][the respective Assignors (in their respective capacities as Lenders)] against any Person, whether known or unknown, arising under or in connection with the Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to <u>clause</u><u> </u><u>(i)</u> above (the rights and obligations sold and assigned by [the][any] Assignor to [the][any] Assignee pursuant to <u>clauses</u><u> </u><u>(i)</u> and <u>(ii)</u> above being referred to in this Assignment and Assumption collectively as [the][an] "<u>Assigned Interest</u>"). Each such sale and assignment is without recourse to [the][any] Assignor and, except as expressly provided in this Assignment and Assumption, without representation or warranty by [the][any] Assignor.

1. <u>Assignor[s]</u>: ______________________________<br> ______________________________

------

<sup>4</sup> For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose the second bracketed language.

<sup>5</sup> For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the second bracketed language.

<sup>6</sup> Select as appropriate.

<sup>7</sup> Include bracketed language if there are either multiple Assignors or multiple Assignees.

Exhibit C to Credit Agreement

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Assignee[s]</u>: ______________________________<br>
 ______________________________<br>
 [for each Assignee, indicate [Affiliate][Approved Fund] of [ *identify Lender* ]]

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Borrower(s)</u>: Track Group, Inc., a Delaware corporation (the " <u>Company</u> "), and each of the Affiliates of the Company that are or may from time to time become parties to the Credit Agreement as "Borrowers"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Administrative Agent</u>: CHATHAM CAPITAL MANAGEMENT, LLC, as Administrative Agent under the Credit Agreement

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Credit Agreement</u>: Credit Agreement dated as of April 30, 2026 (as amended, restated, supplemented or otherwise modified from time to time, the " <u>Credit Agreement</u> "), among Borrowers, the Lenders from time to time party thereto, and Administrative Agent

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Assigned Interest</u>:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| <u>Assignor[s]</u><sup>8</sup> | <u>Assignee[s]</u><sup>9</sup> | Facility<br><u> </u><u>Assigned</u><sup>10</sup> | Aggregate<br> Amount of<br> Commitment/<br> Loans for all<br> <u>Lenders</u><sup>11</sup> | Amount of Commitment/<br> <u>Loans Assigned</u> | Percentage<br> Assigned of<br> Commitment/<br> <u>Loans</u><sup>12</sup> | CUSIP<br> <u>Number</u> |
|  |  | _________ | $__________ | $__________ | __________% |  |
|  |  | _________ | $__________ | $__________ | __________% |  |
|  |  | _________ | $__________ | $__________ | __________% |  |

---

[7. Trade Date: __________________]<sup>13</sup>

Effective Date: __________________, 20__ [to be inserted by Administrative Agent and which will be the effective date of recordation of transfer in the register therefor.]

------

<sup>8</sup> List each Assignor, as appropriate.

<sup>9</sup> List each Assignee, as appropriate.

<sup>10</sup> Fill in the appropriate terminology for the types of facilities under the Credit Agreement that are being assigned under this Assignment (e.g., Revolving Commitment, Term A Loan Commitment, Interest Line Loan Commitment, etc.).

<sup>11</sup> Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

<sup>12</sup> Set forth, to at least 9 decimals, as a percentage of the Commitment/Loans of all Lenders thereunder.

<sup>13</sup> To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date.

Exhibit C to Credit Agreement

------

The terms set forth in this Assignment and Assumption are hereby agreed to:

---

| |
|:---|
| [NAME OF ASSIGNOR], |
| as Assignor |
| By: |
| Name: |
| Title: |
| [NAME OF ASSIGNEE], |
| as Assignee |
| By: |
| Name: |
| Title: |

---

[Consented to and]<sup>14</sup> Accepted:

CHATHAM CAPITAL MANAGEMENT, LLC, as Administrative Agent

By:   <br> Name:   <br> Title:  

[Consented to:]<sup>15</sup>

TRACK GROUP, INC.,<br> as Borrower Representative on behalf of Borrowers

By:   <br> Name:   <br> Title:  

------

<sup>14</sup> To be added only if the consent of Administrative Agent is required by the terms of the Credit Agreement.

<sup>15</sup> To be added only if the consent of Borrowers is required by the terms of the Credit Agreement.

Exhibit C to Credit Agreement

------

ANNEX 1 TO ASSIGNMENT AND ASSUMPTION

[___________________]<sup>16</sup>

<u>STANDARD TERMS AND CONDITIONS FOR</u><br> <u>ASSIGNMENT AND ASSUMPTION</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Representations and Warranties</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 <u>Assignor</u>. [The][Each] Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][the relevant] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of Borrowers, any of its Subsidiaries or Affiliates or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by Borrowers, any of Borrowers' Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Loan Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 <u>Assignee</u>. [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary, to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Lender under the Credit Agreement; (ii) it meets all the requirements to be an assignee under the Credit Agreement (subject to any consents as are required under the Credit Agreement); (iii) from and after the Effective Date, it will be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, will have the obligations of a Lender thereunder; (iv) it is sophisticated with respect to decisions to acquire assets of the type represented by [the][the relevant] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][the relevant] Assigned Interest, is experienced in acquiring assets of that type; (v) it has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to <u>Section</u><u> </u><u>10.1</u> thereof, as applicable, and all other documents and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][the relevant] Assigned Interest; and (vi) it has, independently and without reliance upon Administrative Agent or any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Assumption and to purchase [the][ the relevant] Assigned Interest; and (b) agrees that (i) it will, independently and without reliance upon Administrative Agent, [the][any] Assignor or any other Lender, and based on such documents and information as it deems appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents; and (ii) it will perform in accordance with their terms all of the obligations which by the terms of the Loan Documents are required to be performed by it as a Lender.

------

<sup>16</sup> Describe Credit Agreement at option of Administrative Agent.

Exhibit C to Credit Agreement

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Payments</u>. From and after the Effective Date, Administrative Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>General Provisions</u>. This Assignment and Assumption is binding upon, and will inure to the benefit of, the parties to this Assignment and Assumption and their respective successors and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together will constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy will be effective as delivery of a manually executed counterpart of this Assignment and Assumption. This Assignment and Assumption is governed by, and is to be construed in accordance with, the law of the State of New York, without regard to conflict-of-laws principles.

Exhibit C to Credit Agreement

------

EXHIBIT D

**<u>FORM OF NOTICE OF BORROWING</u>**

To: CHATHAM CAPITAL MANAGEMENT, LLC, as Administrative Agent<br> c/o Chatham Capital<br> 1372 Peachtree Street NE<br> Atlanta, GA 30309<br> Attention: Track Group Portfolio Manager

Please refer to the Credit Agreement dated as of April 30, 2026 (as amended, restated, supplemented or otherwise modified from time to time, the "<u>Credit Agreement</u>"), among Track Group, Inc., a Delaware corporation (the "<u>Company</u>"); each of the other Affiliates of the Company that are or may from time to time become parties thereto (together with the Company, the "<u>Borrowers</u>"); the financial institutions that are or may from time to time become parties thereto (together with their respective successors and assigns, the "<u>Lenders</u>"); and CHATHAM CAPITAL MANAGEMENT, LLC, a Delaware limited liability company, as Administrative Agent. Terms used but not otherwise defined in this Notice of Borrowing are used in this Notice of Borrowing as defined in the Credit Agreement.

The undersigned hereby gives irrevocable notice, pursuant to <u>Section</u><u> </u><u>2.2.2</u> of the Credit Agreement, of a request hereby for a borrowing as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The requested borrowing date for the proposed borrowing (which is a Business Day) is ______________, ____, which is not earlier than [three][ten (10)] Business Days after the date of this request[ and is an interest payment date pursuant to <u>Section</u><u> </u><u>4.1.5</u> of the Credit Agreement].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The aggregate amount of the proposed borrowing is $__________.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The proposed borrowing is for [Revolving Loans][Term A Loans][Interest Line Loans].

The undersigned hereby certifies that on the date of this Notice of Borrowing and on the date of borrowing set forth above, and immediately after giving effect to the borrowing requested hereby: (i) there does not exist, and there will not exist, any Default or Event of Default under the Credit Agreement; (ii) the representations and warranties of each Loan Party set forth in the Credit Agreement and the other Loan Documents are true and correct in all material respects (unless any such representation or warranty is by its terms qualified by concepts of materiality, in which case that representation or warranty is true and correct in all respects) with the same effect as if then made (except to the extent stated to relate to a specific earlier date, in which case that representation or warranty is true and correct in all material respects or in all respects, as applicable, as of that earlier date); and (iii) all of the conditions contained in <u>Section[s]</u><u> </u><u>12.2</u> [and <u>12.3</u>] of the Credit Agreement have been satisfied.

[Signature pages follow]

Exhibit D to Credit Agreement

------

Borrower Representative has caused this Notice of Borrowing to be executed and delivered by its officer thereunto duly authorized on ___________, ______.

---

| |
|:---|
| TRACK GROUP, INC., |
| as Borrower Representative on behalf of Borrowers |
| By: |
| Name: |
| Title: |

---

Exhibit D to Credit Agreement

## Exhibit 10.2

**Exhibit 10.2**

![chathamlogo.jpg](chathamlogo.jpg)

Winston Comments 12 February 2026

February 12, 2026

Derek Cassell & Jim Berg

Track Group, Inc.

---

| | |
|:---|:---|
| RE: | <u>Proposal Letter for a $24.0 million Senior Secured Credit Facility</u> |

---

Dear Derek & Jim:

Chatham Capital Management, LLC (the "**Agent**"), as agent for Chatham Investment Fund VI, L.P., and Chatham Investment Fund VI-A, L.P., and/or its affiliates ("**Chatham**") and other lenders acceptable to the Agent (together with Chatham, the "**Lenders**") is pleased to provide up to a $24.0mm senior secured credit facility (the "**Facility**") to refinance the existing debt of Track Group, Inc. ("**Track Group**", the "**Company**" or the "**Borrower**"). It is anticipated that the aggregate proceeds of the Facility will be used to (i) refinance the existing debt, (ii) fund cash to the balance sheet and (iii) pay fees and expenses associated with the transaction (collectively, the "**Transaction**").

Based on the information that you have provided to us and subject to satisfactory due diligence as well as the terms and conditions set forth in this letter and the Summary of Terms set forth in <u>Exhibit A</u> attached hereto (collectively, the "**Proposal Letter**"), we are pleased to offer our proposal to provide the Facility and act as Agent for the Facility.

The estimated sources and uses of funds are expected to be the following as of the Closing Date:

---

| | | | |
|:---|:---|:---|:---|
| *($ in 000*'*s)* |  |  |  |
| **<u>Sources</u>** | **<u>Amount</u>** | **<u>Uses</u>** | **<u>Amount</u>** |
| Senior Secured Term Loan | $21000 | Loan Refinance | $23520 |
| CRC/JCP/Mgmt PIPE | 10315 | Cash to B/S | 750 |
|  |  | ADSS Deal Fee | 4375 |
|  |  | Est. Transaction Costs | 2670 |
| **Total Sources** | **$31315** | **Total Uses** | **$31315** |

---

As you know, this Proposal Letter is delivered to you at a time when the Agent and the Lenders seeking to provide the Facility have not undertaken their full business, credit, and legal due diligence and analysis. Accordingly, we must emphasize that this Proposal Letter does not constitute a commitment to provide any credit facility or any other investment capital nor an offer to enter into a contract to provide such. As a result of further investigation and analysis by the Agent and the Lenders and their legal counsel or by reason of information of which the Agent and the Lenders are not now aware, impediments to the closing may be discovered. Accordingly, the Agent and the Lenders may require that the proposed Transaction and the Facility be restructured or otherwise modified to make allowance for such impediments. The Agent and the Lenders are the sole judge of what is an impediment and whether the impediment is so serious as to impede or prevent the closing of the proposed Transaction. [Should this be a two-way provision i.e., deal terms are not binding on Borrower/Guarantors?]

------

1372 Peachtree Street NE ● Atlanta, Georgia 30309

tel 770-618-2100 ● fax 770-618-2135

www.chathamcapital.com

------

Track Group Inc.

February ___, 2026

Page 2 of 12

By signing this Proposal Letter, the Agent, the Lenders, the Borrower, and the Guarantors (as defined in the Summary of Terms) acknowledge that this Proposal Letter supersedes any and all discussions and understandings, written or oral, between or among the Agent, Lenders, Borrower, Guarantors, and any other person as to the subject matter hereof. [Need to exclude NDA that is in place] No amendments, waivers, or modifications of this Proposal Letter or any of its contents shall be effective unless expressly set forth in writing and executed by the Agent, the Lenders, and Borrower.

The Borrower and the Guarantors hereby agree that the Agent and the Lenders may assign any or all of their rights and obligations hereunder and under the financing documents to one or more affiliates or transferees.

This Proposal Letter is being provided to you on the condition that, except as required by law, <u>neither it nor its contents</u> will be disclosed publicly or privately except to those individuals who are your officers, employees, or advisors who have a need to know of them as a result of their being specifically involved in the Transaction and then only on the condition that such matters may not, except as required by law, be further disclosed. No person, other than the parties hereto, is entitled to rely upon this Proposal Letter or any of its contents. No person shall, except as required by law, use the name of, or refer to the Agent, any Lender, or any of their affiliates, in any correspondence, discussions, press release, advertisement, or disclosure made in connection with the Facility without the prior written consent of the Agent and/or such Lender, as applicable.

Regardless of whether the proposal herein is terminated or the Facility or Transaction closes, Borrower and the Subsidiary Guarantors jointly and severally agree to pay upon demand to the Lenders all reasonable and documented out of pocket expenses ("**Transaction Expenses**"), [Note: We agree with Daniel's comments re Transaction Expenses] which may be incurred by the Lenders in connection with the Facility (including all reasonable legal, accounting, due diligence, and other consultant costs and fees incurred in the preparation of this Proposal Letter, and evaluation of and documenting of the Facility). In the event that the proposal herein is terminated and the Facility or Transaction is not consummated, Borrower and the Guarantors, jointly and severally, shall indemnify and hold harmless each of the Lenders, their affiliates, and their directors, officers, employees, attorneys, and representatives (each, an "**Indemnified Person**"), from and against all suits, actions, proceedings, claims, damages, losses, liabilities, and expenses (including, but not limited to, reasonable attorneys' fees and disbursements and other costs of investigation or defense, including those incurred upon any appeal), which may be instituted or asserted against or incurred by any such Indemnified Person in connection with, or arising out of, this Proposal Letter, the documentation related thereto, any actions or failures to act in connection therewith, and any and all environmental liabilities and legal costs and expenses arising out of or incurred in connection with any disputes between or among any parties to any of the foregoing, and any investigation, litigation, or proceeding related to any such matters. Notwithstanding the preceding sentence, Borrower and Guarantors shall not be liable for any indemnification to an Indemnified Person to the extent that any such suit, action, proceeding, claim, damage, loss, liability or expense results solely from that Indemnified Person's gross negligence, or willful misconduct, as finally determined by a court of competent jurisdiction. Under no circumstances shall any Lender or any of their affiliates be liable to you or any other person for any punitive, exemplary, consequential or indirect damages in connection with this Proposal Letter, the Transaction, the documentation related thereto or any other financing, regardless of whether the proposal herein is terminated or the Facility closes.

------

Track Group Inc.

February ___, 2026

Page 3 of 12

For a period of the earlier of (i) 30 days after execution of this Proposal Letter or (ii) such date when Agent provides the Company with written notification that it wishes to permanently discontinue work related to the proposed Facility, the Borrower, the Guarantors and their agents and advisors agree to deal exclusively with the Agent in connection with the Transaction and agree not to discuss, offer, or enter into any agreement respecting the origination of a loan, financing or investment with any person or entity other than the Agent. The parties hereto may extend such 30-day exclusivity period for such additional period of time as may be mutually agreed upon by the parties.

This Proposal Letter shall be of no force and effect unless and until a signed copy of Proposal Letter is delivered to the Agent on or before 5:00PM ET on February ____, 2026.

We look forward to continuing to work with you toward completing this Transaction.

---

| |
|:---|
| Sincerely, |
| **CHATHAM CAPITAL MANAGEMENT, LLC** |
| By:  |
| Name: Jeff Hagar |
| Title: Partner |

---

ACCEPTED AND AGREED TO ON

THIS ___ DAY OF __________, 2026:

**TRACK GROUP INC.** 

By:<u> </u><u> </u><u> </u><u> </u><u> </u>

Name: Derek Cassell

Title: CEO

------

Track Group Inc.

February ___, 2026

Page 4 of 12

**<u>EXHIBIT A</u>**

**<u>SUMMARY OF TERMS</u>**

------

Track Group Inc.

February ___, 2026

Page 5 of 12

---

| | |
|:---|:---|
| <u>BORROWER</u>: | Track Group, Inc., and/or other subsidiaries / affiliates / Newcos / Co-Borrowers / Guarantors acceptable to Agent (the "**Borrower**"). |
| <u>CO-BORROWERS/ GUARANTORS:</u> | Any parent company of the Borrower and all present and future direct and indirect subsidiaries of the Borrower and their affiliates that are related to this Transaction (the "**Co-Borrowers**", "**Subsidiary Guarantors**", or "**Guarantors**"). |
| <u>LENDERS</u>: | Chatham Investment Fund VI, L.P., and Chatham Investment Fund VI-A, L.P., and/or its affiliates and other lender(s) acceptable to the Agent. |
| <u>AGENT</u>: | Chatham Capital Management, LLC and/or an affiliate thereof (the "**Agent**"). |
| <u>FACILITY</u>: | The Facility will consist of the following components (the "**Loans**")<br> (i) $2.0mm Revolving Line of Credit (the "**Revolver**"), unfunded at closing<br> (ii) $21.0mm 1st Lien Term Loan (the "**Term Loan**"), funded at closing<br> (iii) $1.0mm Interest Line Facility (the "**Interest Line**"), unfunded at closing |
| <u>AVAILABILITY</u>: | Availability for the Revolver is subject to pro forma covenant compliance and certain other performance and collateral metrics.<br>The Term Loan will be fully funded on the Closing Date.<br>Availability for the Interest Line is subject to covenant compliance and for a period of 12 months after closing. After availability period ends the balance of interest line will be added to the Term Loan. [Can Borrower if it chooses elect to not have balance of Interest Line added to Term Loan?] |
| <u>PERMITTED USES:</u> | The Proceeds of the Transaction shall be used for the following purposes:<br> (i) Refinance the existing debt of Track Group, Inc.<br> (ii) Fund cash to the balance sheet<br> (iii) To pay fees and expenses in connection with the transaction |
| <u>MATURITY DATE</u>: | The 5th anniversary of the Closing Date of the Facility (the "**Maturity Date**"). |
| <u>CLOSING DATE</u>: | On or before February 28, 2026 (the "**Closing Date**"; and the closing of the Transactions on the Closing Date, the "**Closing**"). |
| <u>INTEREST:</u> |  |
| <u>Cash Interest</u>  | The Facility shall bear monthly interest at a fixed rate of 11%, of which 50% (5.5%) can be funded via the Interest Line in the first two quarters after closing at Company's discretion ("Q1-Q2 Toggle") and 25% (2.75%) can be funded via the Interest Line in the third and fourth quarters after closing at Company's discretion ("Q3-Q4 Toggle").<br>Interest and all payments will be due on the first day of each month, and all interest will be computed monthly in arrears on the first day of each month using an actual/360 convention. |

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|:---|:---|
| <u>PIK Interest</u> | In addition to the rates stated above, the Facility shall bear PIK interest, accrued and added to the principal on a monthly basis, at a fixed base rate of 2.5% ("Base PIK"); if the Company elects the Q1-Q2 Toggle or Q3-Q4 Toggle in any month, the Base PIK shall be increased by 2%. |
| <u>FEES</u>: |  |
| <u>Due Diligence Deposit</u> | A Due Diligence Deposit of $75,000 will be due and payable to the Agent upon the execution of the Proposal Letter by the Borrower and the unused portion will be replenished upon demand at such time as the unused portion of the Due Diligence Deposit is reduced/offset by fees and expenses (both paid and accrued) to $25,000.<br>The Due Diligence Deposit will be used to pay legal, travel, administrative, consulting, and accounting due diligence fees and expenses, and other charges incurred by or on behalf of the Lenders on or prior to the Closing Date. If Borrower declines to proceed with or satisfy any of the conditions set forth herein for consummation of the financing, the Due Diligence Deposit plus all paid and accrued expenses will be retained by the Agent as a fully earned, non-refundable work fee. |
| <u>Closing Fee</u> | On the Closing Date, a fully earned Closing Fee in an amount equal to 3.0% of the Facility shall be due and payable to the Lenders. |
| <u>Original Issue Discount</u> | On the Closing Date, a fully earned Original Issue Discount of $750,000 shall be due and payable to the Lenders. |
| <u>Success Fee</u> | Upon refinancing, payoff or maturity of the Lender's Facility, a success fee of $750,000 shall be due and payable to the Lenders. |

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|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Prepayment Fee</u> | In the event that the Borrower prepays or reduces any portion of the Facility before the 1<sup>st</sup> anniversary a fee equal to 1-full year of interest shall be applied. If prepayment occurs after the 1st anniversary, a prepayment fee shall apply equal to 3.0% of the Facility before the 2nd anniversary, 2.0% of the Facility before the 3rd anniversary, and 1.0% of the Facility before the 4th anniversary. The prepayment fee will not apply to principal balance reductions resulting from scheduled amortization or excess cash flow payments. |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<u>Unused Facility Fee</u> | 1.0% per annum, payable monthly in arrears on the first day of each month, calculated on the difference between the average daily usage of the Revolver outstanding balance during each month and the Revolver commitment. |
| <u>WARRANTS:</u> |  |
| <u>General</u> | In connection with the Facility, the Lenders will receive on the Closing Date, at no charge, fully detachable, nominally priced, warrants to acquire such number of shares or units of Borrower's capital stock equal to an aggregate of 2.5% (the "**Warrant Percentage**") of the outstanding shares or units of the Borrower's capital stock on a fully diluted basis (the "**Warrants**").<br>The Warrants shall have a 10-year term, be freely transferable (subject to applicable securities law) and shall contain anti-dilution language including fair market value anti-dilution language, demand registration rights, piggy-back rights, and co-sale provisions. |
| <u>REPAYMENTS:</u> |  |
| <u>Mandatory Repayments</u> | Borrower shall make certain mandatory prepayments of principal, to be determined during definitive documentation, and to include the following amounts, none of which shall trigger a prepayment penalty: (a) 100% of the net proceeds of any sales or other dispositions of any of the assets (other than dispositions of assets in the ordinary course), (b) subject to exceptions for certain repairs and replacements, 100% of the net insurance proceeds or other awards payable in connection with the loss (subject to exclusions as agreed to by the Agent and Borrower), destruction or condemnation of any assets of Borrower or any Subsidiary Guarantor, (c) 100% of the net cash proceeds from the issuance of debt or equity, (d) the excess cash flow sweep described herein and, (e) 100% of extraordinary receipts. |
| <u>Term Loan Repayment</u> | Following the Closing Date, the Term Loan will amortize monthly based on 5.0% of the Term Loan amortizing each year after a 24 month-holiday from the Closing Date, with the remaining bullet payment due and payable on the Maturity Date. Attached as <u>Schedule 1</u> hereto is the payment schedule for the Term Loan.<br>The Facility will be subject to an annual principal repayment based on 50.0% of excess cash flow. |

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|:---|:---|
| <u>COLLATERAL:</u> | To secure the Facility and all of the other obligations of Borrower and the other Guarantors to Lenders, Lenders will receive a first fully perfected security interest in all of the existing and after acquired personal and real property, fee, and leasehold mortgages, tangible and intangible assets of the Borrower and the Guarantors, including, without limitation, all cash, cash equivalents, bank accounts, accounts, accounts receivables, loan receivables, other receivables, inventory (wherever located), payment intangibles, chattel paper, contract rights, goods, instruments, documents, securities (whether or not marketable), equipment, fixtures, franchise rights, patents, trade names, trademarks, copyrights, intellectual property, general intangibles (including software), investment property, supporting obligations, letter of credit rights, commercial tort claims and all substitutions, accessions and proceeds of the foregoing (including insurance proceeds) (all of the above, collectively, the "**Collateral**"). All Collateral will be free and clear of other liens, claims and encumbrances except certain permitted encumbrances to be defined in the definitive documentation.<br>As further security, the Borrower and Guarantors will pledge to the Lenders all of the issued and outstanding capital stock, membership, or other equity interests of the Borrower and the Guarantors on a first lien basis. Subject to legal diligence, preliminary structure would include an intermediate holding company, with the Public Parent company pledging 100% of its assets in that company. Public Parent and intermediate holding company both grant liens on all their respective assets including Public Parent's 100% pledge of intermediate holding company. |
| <u>OTHER CONDITIONS</u>: | Lenders' proposal with respect to the Facility is conditioned upon satisfaction of the following conditions, and the financing documents will require, among other items, compliance with the following requirements:<br>● Satisfactory completion of due diligence by the Lenders.<br>● Satisfactory review and approval by Chatham and Lenders of final documentation and terms of the transaction and all corporate documentation, and other relevant agreements, in their sole discretion.<br>● Completion by the Lenders of all legal, regulatory, insurance, and financial due diligence (including a quality of earnings) and such other matters as deemed necessary by the Lenders in their sole discretion, with results satisfactory to the Lenders.<br>● Employment agreements for key management are satisfactory to the Lenders with non-compete and non-solicitation agreements in respect to certain employees in a form acceptable to Lenders.<br>● Satisfactory background checks on key management, owners and employees. |

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● Subordination agreements satisfactory to the Lenders, as deemed necessary, including on management fees, shareholder distributions, or similar payments / agreements.<br>● Minimum Liquidity, subject to due diligence but preliminarily $1.0mm.<br>● $5.6mm minimum pro forma adjusted EBITDA at close with any adjustments satisfactory to the Agent and the Lenders in their sole discretion.<br>● Cash management systems to be acceptable to Agent and springing DACA executed on all deposit accounts in favor of the Lenders.<br>● Consents from landlords, as necessary, to the transaction and to provide Chatham satisfactory access rights<br>● Loan documents will contain affirmative and negative covenants customarily found in loan agreements for similar financings including, but not limited to restrictions on indebtedness, liens, dividends, distributions, asset sales, investments, acquisitions (other than acquisitions expressly consented to in writing by the Lenders in their sole discretion), fundamental changes, affiliate transactions, and other restricted payments (other than repurchases of shareholder equity at the discretion of the Borrower). The loan documents shall include provisions which provide Borrower a customary period of time to cure any breaches of the loan documents following Lender's delivery of written notice to Borrower of such breaches.<br>● For so long as the Facility is outstanding, observation rights at the Board of Directors meetings (or similar governance meetings) of the Borrower (including executive sessions) shall be granted for up to two representatives of Chatham. Upon repayment in full of the principal balance, as long as the warrant remains outstanding, Agent and the lenders will have the right to have one observer attend meetings of the Board of Directors of the Borrower for two (2) years thereafter.<br>● Commercially reasonable insurance for the Borrower's industry; the Agent (on behalf and for the benefit of the Lenders) to be named as loss payee (property/casualty/business interruption/workers' compensation) and additional insured (liability); and non-renewal/cancellation/ amendment riders to provide 30 days advance notice to the Agent (on behalf of and for the benefit of the Lenders). Key Man life insurance may be required for designated key employees of Borrower.<br>● As of the Closing Date, there has been no material adverse change in the business, financial or other condition of the Borrower or any Subsidiary Guarantor, or in the prospects or projections of Borrower or any Subsidiary Guarantor.<br>

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|  | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Other conditions as the Lenders may reasonably request. |
| <u>FINANCIAL & REPORTING COVENANTS:</u> | The loan documents will contain monthly financial reporting and quarterly covenants customarily found in loan agreements for similar financings, including but not limited to: (a) Maximum Gross Leverage Ratio, defined as: Funded Debt divided by TTM Adjusted EBITDA, (b) Minimum TTM Adjusted EBITDA, (c) Minimum fixed charge coverage, defined as: TTM Adjusted EBITDA less cash maintenance capital expenditures, less taxes, less distributions (subject to lender approval) divided by current portion of long-term debt plus interest expense, (d) maximum aggregate unfinanced capital expenditures over the TTM period (inclusive of maintenance and growth capital expenditures), and this covenant will include a carveout related to unfinanced capital expenditures related to new contract wins (subject to lender approval) (such carve-out, the "**Unfinanced Capital Expenditures Carve-out**"), and (e) minimum liquidity. Additional information on the ratios and other metrics relating to the foregoing financial & reporting covenants is set forth in <u>Schedule 2</u> attached hereto.<br>The loan documents shall include commercially reasonable cure periods and cure actions afforded to Borrower and Guarantors following Lender's delivery of written notice to Borrower and Guarantors of such breaches. |
| <u>GOVERNING LAW</u>: | State of Delaware or New York. |

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**<u>Schedule 1</u>** 

**Payment Schedule for Term Loan**

*(see attached excel file)*

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**<u>Schedule 2</u>** 

**Ratios and Other Metrics for Financial & Reporting Covenants<sup>1</sup>**

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **03/31/26**<br> ***(closing)*** | **06/30/26** | **09/30/26** | **12/31/26** | **03/31/27** | **06/30/27** | **09/30/27** | **12/31/27** | **03/31/28**<br> **& after** |
| (a) Maximum Gross Leverage Ratio | <u><</u> 5.25 | <u><</u> 5.25 | <u><</u> 5.25 | <u><</u> 5.25 | <u><</u> 3.90 | <u><</u> 3.90 | <u><</u> 3.90 | <u><</u> 3.90 | <u><</u> 3.00 |
| (b) Minimum Adj. EBITDA (TTM) | <u>></u> $4.0M | <u>></u> $4.0M | <u>></u> $4.0M | <u>></u> $4.0M | <u>></u> $5.3M | <u>></u> $5.3M | <u>></u> $5.3M | <u>></u> $5.3M | <u>></u> $5.3M |
| (c) Minimum FCCR (TTM) | <u>></u> 1.20 | <u>></u> 1.20 | <u>></u> 1.20 | <u>></u> 1.20 | <u>></u> 1.20 | <u>></u> 1.20 | <u>></u> 1.20 | <u>></u> 1.20 | <u>></u> 1.20 |
| (d) Maximum Capex (TTM)\* | <u><</u> $7.3M | <u><</u> $7.3M | <u><</u> $7.3M | <u><</u> $7.3M | <u><</u> $4.3M | <u><</u> $4.3M | <u><</u> $4.3M | <u><</u> $4.3M | <u><</u> $3.5M |
| (e) Minimum Liquidity | <u>></u> $1.0M | <u>></u> $1.0M | <u>></u> $1.0M | <u>></u> $1.0M | <u>></u> $1.0M | <u>></u> $1.0M | <u>></u> $1.0M | <u>></u> $1.0M | <u>></u> $1.0M |
| <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* | <br> *The Unfinanced Capital Expenditures Carve-out is* ***not included*** *in above chart item (d)* |

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**<sup>1</sup> [NTD: The figures in the table are under review by the parties.]**

## Exhibit 10.3

**Exhibit 10.3**

**SECURITIES PURCHASE AGREEMENT**

SECURITIES PURCHASE AGREEMENT (the "Agreement"), dated as of April 30, 2026, by and among Track Group, Inc., a Delaware corporation, with headquarters located at 200 E. 5th Avenue, Suite 100, Naperville, IL 60563 (the "Company"), and the investors listed on the Schedule of Buyers attached hereto (individually, a "Buyer" and collectively, the "Buyers").

**WHEREAS:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The Company and each Buyer is executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(a)(2) of the Securities Act of 1933, as amended (the "1933 Act"), and Rule 506(b) of Regulation D ("Regulation D") as promulgated by the United States Securities and Exchange Commission (the "SEC") under the 1933 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Each Buyer wishes to purchase, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, (i) that aggregate number of shares of the Company's common stock, par value $0.0001 per share (the "Common Stock"), set forth opposite such Buyer's name in column (3) on the Schedule of Buyers attached hereto (which aggregate amount for all Buyers together shall be 29,471,429 shares of Common Stock and shall collectively be referred to herein as the "Common Shares") and (ii) Warrants, in substantially the form attached hereto as Exhibit C (the "Warrants"), representing the right to acquire that number of shares of Common Stock set forth opposite such Buyer's name in column (4) on the Schedule of Buyers (such shares of Common Stock underlying the Warrants, the "Warrant Shares").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. Contemporaneously with the execution and delivery of this Agreement, the parties hereto are executing and delivering a Registration Rights Agreement, substantially in the form attached hereto as Exhibit D (the "Registration Rights Agreement"), pursuant to which the Company has agreed to provide certain registration rights with respect to the Registrable Securities (as defined in the Registration Rights Agreement) under the 1933 Act and the rules and regulations promulgated thereunder, and applicable state securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D. The Warrants, the Common Shares and the Warrant Shares are also sometimes referred to herein as the "Securities".

**NOW, THEREFORE**, the Company and each Buyer hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>PURCHASE AND SALE OF COMMON SHARES AND WARRANTS</u>.

(a) <u>Purchase of Common Shares and Warrants</u>. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 6 and 7 below, the Company shall issue and sell to each Buyer, and each Buyer severally, but not jointly, agrees to purchase from the Company on the Closing Date (as defined below), (x) the number of Common Shares as is set forth opposite such Buyer's name in column (3) on the Schedule of Buyers and (y) Warrants to acquire up to that number of Warrant Shares as is set forth opposite such Buyer's name in column (4) on the Schedule of Buyers (the "Closing").

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(b) <u>Closing</u>. The date and time of the Closing (the "Closing Date") shall be 10:00 a.m., New York City time, on the date hereof (or such other date and time as is mutually agreed to by the Company and each Buyer) after notification of satisfaction (or waiver) of the conditions to the Closing set forth in Sections 6 and 7 below, via the electronic exchange of documents and executed signature pages, unless another place or means is agreed to in writing by the parties hereto.

(c) <u>Purchase Price</u>. The aggregate purchase price for the Common Shares and Warrants to be purchased by each Buyer at the Closing (the "Purchase Price") shall be the amount set forth opposite each Buyer's name in column (5) of the Schedule of Buyers.

(d) <u>Form of Payment</u>. On the Closing Date, (i) each Buyer shall pay its Purchase Price to the Company for the Common Shares and Warrants to be issued and sold to such Buyer at the Closing (less, in the case of each of JCP Investment Partnership, LP and JCP Investment Management, LLC (collectively, "JCP"), and CRC Founders Fund, LP ("CRC"), the amounts withheld for JCP and CRC pursuant to Section 4(f)), by wire transfer of immediately available funds in accordance with the Company's written wire instructions and (ii) the Company shall deliver to each Buyer a stock certificate evidencing the number of Common Shares such Buyer is purchasing as is set forth opposite such Buyer's name in column (3) of the Schedule of Buyers (or evidence of the registration of such Common Shares in the name of such Buyer in book-entry form with the Company's transfer agent) along with Warrants (allocated in the amounts as such Buyer shall request) which such Buyer is purchasing hereunder duly executed on behalf of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>BUYER</u><u>'</u><u>S REPRESENTATIONS AND WARRANTIES</u>. Each Buyer, severally and not jointly, represents and warrants with respect to only itself that, as of the date hereof and as of the Closing Date:

(a) <u>No Public Sale or Distribution</u>. Such Buyer is (i) acquiring the Common Shares and Warrants and (ii) upon exercise of the Warrants will acquire the Warrant Shares issuable upon exercise of the Warrants for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations herein, such Buyer does not agree to hold any of the Securities for any minimum or other specific term and reserves the right to dispose of the Securities at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. Such Buyer is acquiring the Securities hereunder in the ordinary course of its business. Such Buyer does not presently have any agreement or understanding, directly or indirectly, with any Person (as defined below) to distribute any of the Securities. For purposes of this Agreement, "Person" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any government or any department or agency thereof.

(b) <u>Accredited Investor Status</u>. Such Buyer is an "accredited investor" as that term is defined in Rule 501(a) of Regulation D.

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(c) <u>Reliance on Exemptions</u>. Such Buyer understands that the Securities are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and such Buyer's compliance with, the representations, warranties, agreements, acknowledgments and understandings of such Buyer set forth herein in order to determine the availability of such exemptions and the eligibility of such Buyer to acquire the Securities.

(d) <u>Information</u>. Such Buyer and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Securities that have been requested by such Buyer. Such Buyer and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by such Buyer or its advisors, if any, or its representatives shall modify, amend or affect such Buyer's right to rely on the Company's representations and warranties contained herein. Such Buyer understands that its investment in the Securities involves a high degree of risk. Such Buyer has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Securities.

(e) <u>No Governmental Review</u>. Such Buyer understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Securities or the fairness or suitability of the investment in the Securities nor have such authorities passed upon or endorsed the merits of the offering of the Securities.

(f) <u>Transfer or Resale</u>. Such Buyer understands that except as set forth in the Registration Rights Agreement: (i) the Securities have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred unless (A) subsequently registered thereunder, (B) such Buyer shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such Securities to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) such Buyer provides the Company with reasonable assurance that such Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act, as amended, (or a successor rule thereto) (collectively, "Rule 144"); (ii) any sale of the Securities made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Securities under circumstances in which the seller (or the Person) through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. Notwithstanding the foregoing, the Securities may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Securities and such pledge of Securities shall not be deemed to be a transfer, sale or assignment of the Securities hereunder, and no Buyer effecting a pledge of Securities shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b)), including, without limitation, this Section 2(f).

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(g) <u>Legends</u>. Such Buyer understands that the stock certificates representing the Common Shares and Warrant Shares and the certificates or other instruments representing the Warrants, except as set forth below, shall bear a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

[NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISABLE HAVE BEEN] [THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN] REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL SELECTED BY THE HOLDER, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE SECURITIES.

The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Securities upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account at The Depository Trust Company ("DTC"), if (i) such Securities are registered for resale under the 1933 Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Securities may be made without registration under the applicable requirements of the 1933 Act, or (iii) the Securities can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated with such issuance. The Company shall cause its counsel to issue a legal opinion to the Transfer Agent promptly if required by the Transfer Agent, and/or to any Buyer if requested by such Buyer, to effect the removal of the legend hereunder.

(h) <u>Validity; Enforcement</u>. This Agreement and the Registration Rights Agreement have been duly and validly authorized, executed and delivered on behalf of such Buyer and shall constitute the legal, valid and binding obligations of such Buyer enforceable against such Buyer in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

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(i) <u>No Conflicts</u>. The execution, delivery and performance by such Buyer of this Agreement and the Registration Rights Agreement and the consummation by such Buyer of the transactions contemplated hereby will not (i) result in a violation of the organizational documents of such Buyer or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which such Buyer is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to such Buyer, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of such Buyer to perform its obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>REPRESENTATIONS AND WARRANTIES OF THE COMPANY</u>. The Company makes the following representations and warranties to each of the Buyers, as of the date hereof and as of the Closing Date, subject to the disclosures of the Company set forth in the disclosure schedules delivered to the Buyers as of the date hereof (the "Disclosure Schedules"). The Disclosure Schedules shall be arranged in sections corresponding to the numbered and lettered sections and subsections contained in this Section 3 and certain other sections of this Agreement.

(a) <u>Organization and Qualification</u>. Each of the Company and each of its "Subsidiaries" (which for purposes of this Agreement means any entity in which the Company, directly or indirectly, owns any of the capital stock or holds an equity or similar interest) are entities duly organized and validly existing and in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as now being conducted and as presently proposed to be conducted. Each of the Company and each of its Subsidiaries is duly qualified as a foreign entity to do business and is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect. As used in this Agreement, "Material Adverse Effect" means any material adverse effect on the business, properties, assets, liabilities, operations, results of operations, condition (financial or otherwise) or prospects of the Company and its Subsidiaries, individually or taken as a whole, or on the transactions contemplated hereby or on the other Transaction Documents or by the agreements and instruments to be entered into in connection herewith or therewith, or on the authority or ability of the Company to perform any of its obligations under any of the Transaction Documents (as defined below). The Company has no Subsidiaries except as set forth on Schedule 3(a).

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(b) <u>Authorization; Enforcement; Validity</u>. The Company has the requisite power and authority to enter into and perform its obligations under this Agreement, the Warrants, the Registration Rights Agreement and each of the other agreements entered into by the parties hereto in connection with the transactions contemplated by this Agreement (collectively, the "Transaction Documents") and to issue the Securities in accordance with the terms hereof and thereof. The execution and delivery of this Agreement and the other Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Common Shares and the Warrants, and the reservation for issuance and issuance of the Warrant Shares issuable upon exercise of the Warrants, have been duly authorized by the Company's Board of Directors and (other than the filing with the SEC of one or more Registration Statements (as defined in the Registration Rights Agreement) in accordance with the requirements of the Registration Rights Agreement, the filing of a Form D with the SEC and other filings as may be required by state securities agencies) no further filing, consent, or authorization is required by the Company, its Board of Directors or its stockholders. This Agreement and the other Transaction Documents have been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors' rights and remedies.

(c) <u>Issuance and Reservation of Securities</u>. The issuance of the Common Shares and the Warrants are duly authorized and, upon issuance in accordance with the terms hereof or of the Warrants, as applicable, shall be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof. As of the Closing, a number of shares of Common Stock shall have been duly authorized and reserved for issuance which equals or exceeds 120% of the maximum number of Warrant Shares issuable pursuant to the Warrants (the "Required Reserved Amount"). Upon exercise of the Warrants in accordance with the Warrants, the Warrant Shares will be validly issued, fully paid and nonassessable and free from all preemptive or similar rights, taxes, liens, charges and other encumbrances with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. Assuming the accuracy of each of the representations and warranties set forth in Section 2 of this Agreement, the offer and issuance by the Company of the Securities is exempt from registration under the 1933 Act.

(d) <u>No Conflicts</u>. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Common Shares and the Warrants and reservation for issuance and issuance of the Warrant Shares) will not (i) result in a violation of the Certificate of Incorporation (as defined in Section (3(r)) or Bylaws (as defined in Section (3(r)), any memorandum of association, certificate of incorporation, certificate of formation, bylaws, any certificate of designations or other constituent documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or the articles of association or bylaws of the Company or any of its Subsidiaries or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including other foreign, federal and state securities laws and regulations and the rules and regulations of the OTC QB (the "Principal Market") and including all applicable laws of the State of Delaware and any foreign, federal and state laws, rules and regulations) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected, except to the extent that violation would not reasonably be expected to have a Material Adverse Effect. For purposes of this Agreement, the terms "Company's Knowledge" or "Knowledge of the Company" shall mean the actual, current knowledge of the Company's Chief Executive Officer and Chief Financial Officer after reasonable inquiry.

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(e) <u>Consents</u>. The Company is not required to obtain any consent, authorization or order of, or make any filing or registration with (other than the filing with the SEC of one or more Registration Statements in accordance with the requirements of the Registration Rights Agreement, a Form D with the SEC and other filings as may be required by state securities agencies), any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance with the terms hereof or thereof, except where the failure to obtain such consent, authorization or order of, or make any filing or registration would not reasonably be expected to have a Material Adverse Effect. All consents, authorizations, orders, filings and registrations which the Company is required to obtain pursuant to the preceding sentence have been obtained or effected on or prior to the Closing Date (or in the case of the filings detailed above, will be made timely after the Closing Date), and, to the Company's Knowledge, no facts or circumstances exist that might prevent the Company from obtaining or effecting any of the registration, application or filings pursuant to the preceding sentence. The Company has not received any written notice from the Principal Market that it is in violation of the listing requirements of the Principal Market, and, to the Company's Knowledge, no facts or circumstances exist as of the date hereof that would reasonably lead to delisting or suspension of the Common Stock in the foreseeable future. The issuance by the Company of the Securities in accordance with the terms of the Transaction Documents is not reasonably expected to have the effect of delisting or suspending the Common Stock from the Principal Market.

(f) <u>Acknowledgment Regarding Buyer</u><u>'</u><u>s Purchase of Securities</u>. The Company acknowledges and agrees that each Buyer is acting solely in the capacity of an arm's length purchaser with respect to the Transaction Documents and the transactions contemplated hereby and thereby and that, except as set forth on Schedule 3(f), no Buyer is (i) an officer or director of the Company or any of its Subsidiaries, (ii) an "affiliate" of the Company or any of its Subsidiaries (as defined in Rule 144) or (iii) to the knowledge of the Company, a "beneficial owner" of more than 10% of the shares of Common Stock (as defined for purposes of Rule 13d-3 of the Securities Exchange Act of 1934, as amended (the "1934 Act"). The Company further acknowledges that no Buyer is acting as a financial advisor or fiduciary of the Company or any of its Subsidiaries (or in any similar capacity) with respect to the Transaction Documents and the transactions contemplated hereby and thereby. The Company further represents to each Buyer that the Company's decision to enter into the Transaction Documents has been based solely on the independent evaluation by the Company and its representatives.

(g) <u>No General Solicitation</u>. Neither the Company, nor any of its Subsidiaries or affiliates, nor, to the Company's Knowledge, any Person acting on its or their behalf, has engaged in any form of general solicitation or general advertising (within the meaning of Regulation D) in connection with the offer or sale of the Securities.

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(h) <u>No Integrated Offering</u>. None of the Company, its Subsidiaries, any of their affiliates, nor, to the Company's Knowledge, any Person acting on their behalf has, directly or indirectly, made any offers or sales of any security or solicited any offers to buy any security, under circumstances that would require registration of the issuance of any of the Securities under the 1933 Act, whether through integration with prior offerings or otherwise, or cause this offering of the Securities to require approval of stockholders of the Company for purposes of the 1933 Act or any applicable stockholder approval provisions, including, without limitation, under the rules and regulations of any exchange or automated quotation system on which any of the securities of the Company are listed or designated for quotation. None of the Company, its Subsidiaries, their affiliates, nor any Person acting on the Company's behalf under direct authorization from the Company, will take any action or steps referred to in the preceding sentence that would require registration of the issuance of any of the Securities under the 1933 Act or cause the offering of any of the Securities to be integrated with other offerings for purposes of any such applicable stockholder approval provisions.

(i) <u>Application of Takeover Protections; Rights Agreement</u>. The Company and its Board of Directors have taken all necessary action, if any, in order to render inapplicable any control share acquisition, interested shareholder, business combination, poison pill (including, without limitation, any distribution under a rights agreement) or other similar anti-takeover provision under the Certificate of Incorporation, Bylaws or other organizational documents or the laws of the jurisdiction of its formation which is or could become applicable to any Buyer as a result of the transactions contemplated by this Agreement, including, without limitation, the Company's issuance of the Securities and any Buyer's ownership of the Securities. The Company has not adopted a stockholder rights plan or similar arrangement relating to accumulations of beneficial ownership of Common Stock or a change in control of the Company or any of its Subsidiaries.

(j) <u>SEC Documents; Financial Statements</u>. During the two (2) years prior to the date hereof, the Company has timely filed all reports, schedules, forms, statements and other documents required to be filed by it with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed within the two (2) years prior to the date hereof or prior to the Closing Date, and all exhibits included therein and financial statements, notes and schedules thereto and documents incorporated by reference therein being hereinafter referred to as the "SEC Documents"). All of the SEC Documents are available on the EDGAR system. As of their respective filing dates, the SEC Documents complied in all material respects with the requirements of the 1934 Act and the rules and regulations of the SEC promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at the time they were filed with the SEC, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. As of their respective filing dates, the financial statements of the Company included in the SEC Documents complied as to form in all material respects with applicable accounting requirements and the published rules and regulations of the SEC with respect thereto. Such financial statements have been prepared in accordance with generally accepted accounting principles, consistently applied, during the periods involved ("GAAP") (except (i) as may be otherwise indicated in such financial statements or the notes thereto, or (ii) in the case of unaudited interim statements, to the extent they may exclude footnotes or may be condensed or summary statements) and fairly present in all material respects the financial position of the Company and its Subsidiaries as of the dates thereof and the results of its operations and cash flows for the periods then ended (subject, in the case of unaudited statements, to normal year-end audit adjustments which will not be material either individually or in the aggregate). No other information provided by or on behalf of the Company to any of the Buyers which is not included in the SEC Documents, including, without limitation, information in the disclosure schedules to this Agreement, contains any untrue statement of a material fact or omits to state any material fact necessary in order to make the statements therein, in the light of the circumstance under which they are or were made, not misleading. For the avoidance of doubt, except for the representations and warranties contained in this Section 3 (including the related portions of the Disclosure Schedules and the representation in the immediately preceding sentence), none of the Company, its Subsidiaries, their affiliates, nor any Person acting on their behalf has made or makes any other express or implied representation or warranty, either written or oral, on behalf of the Company, including any representation or warranty as to the accuracy or completeness of any information regarding the Company furnished or made available to Buyer and its Representatives (including any information, documents or material delivered to Buyer or otherwise made available to Buyer in a virtual data room, management presentations or in any other form in expectation of the transactions contemplated hereby) or as to the future revenue, profitability or success of the Company, or any representation or warranty arising from statute or otherwise in law.

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(k) <u>Absence of Certain Changes</u>. Except as disclosed in Schedule 3(k), since September 30, 2025, there has been no event that would reasonably be expected to cause a Material Adverse Effect. Except as disclosed in Schedule 3(k), since September 30 2025, neither the Company nor any of its Subsidiaries has (i) declared or paid any dividends, (ii) sold any assets, individually or in the aggregate, in excess of $100,000 outside of the ordinary course of business or (iii) had any capital expenditures, individually or in the aggregate, in excess of $100,000 outside of the ordinary course of business. Neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up nor does the Company or any Subsidiary have any actual knowledge or reason to believe that any of its respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact that would reasonably lead a creditor to do so. The Company and its Subsidiaries, individually and on a consolidated basis, after giving effect to (i) the transactions contemplated hereby to occur at the Closing, and (b) the closing of the transactions contemplated by that certain Credit Agreement, among Track Group, Inc., each of its affiliates party thereto, the various financial institutions party thereto and Chatham Capital Management, LLC, as administrative agent and lead arranger (the "Loan Facility"), will not be Insolvent (as defined below). For purposes of this Section 3(k), "Insolvent" means, with respect to any Person, (i) the present fair saleable value of such Person's assets is less than the amount required to pay such Person's total Indebtedness (as defined in Section 3(s)), (ii) such Person is unable to pay its debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured, (iii) such Person intends to incur or reasonably believes that it will incur debts that would be beyond its ability to pay as such debts mature or (iv) such Person has unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted and is proposed to be conducted.

(l) <u>No Undisclosed Events, Liabilities, Developments or Circumstances</u>. Except for the transactions contemplated hereby and pursuant to the Loan Facility, no event, liability, development or circumstance has occurred or exists, or is currently contemplated to occur with respect to the Company, its Subsidiaries or their respective business, properties, prospects, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws on a registration statement filed with the SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly announced.

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(m) <u>Placement Agent</u><u>'</u><u>s Fees</u>. Neither the Company nor any of its Subsidiaries has engaged any placement agent or other agent in connection with the sale of the Securities. The Company shall be responsible for the payment of any placement agent's fees, financial advisory fees, or brokers' commissions (other than for persons engaged by any Buyer or its investment advisor) relating to or arising out of the transactions contemplated hereby in connection with the sale of the Securities. The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, attorney's fees and out-of-pocket expenses) arising in connection with any such claim.

(n) <u>Conduct of Business; Regulatory Permits</u>. Neither the Company nor any of its Subsidiaries is in violation in any material respects of any term of or in default under any certificate of designations of any outstanding series of preferred stock of the Company (if any), its Certificate of Incorporation or Bylaws or their organizational charter or memorandum of association or certificate of incorporation or articles of association or bylaws, respectively. Neither the Company nor any of its Subsidiaries is in violation of any judgment, decree or order or any statute, ordinance, rule or regulation applicable to the Company or any of its Subsidiaries, and neither the Company nor any of its Subsidiaries will conduct its business in violation of any of the foregoing, except for possible violations which would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. Without limiting the generality of the foregoing, the Company has not received any written notice from the Principal Market that it is in violation of any of the rules, regulations or requirements of the Principal Market and, to the Company's Knowledge, no facts or circumstances exist as of the date hereof that would reasonably lead to delisting or suspension of the Common Stock by the Principal Market in the foreseeable future. Except as otherwise disclosed in the SEC Reports, during the two (2) years prior to the date hereof, (i) trading in the Common Stock has not been suspended by the SEC or the Principal Market and (ii) the Company has received no communication, written or oral, from the SEC or the Principal Market regarding the suspension or delisting of the Common Stock from the Principal Market. The Company and its Subsidiaries possess all certificates, authorizations and permits issued by the appropriate federal, state or foreign regulatory authorities necessary to conduct their respective businesses, except where the failure to possess such certificates, authorizations or permits would not have, individually or in the aggregate, a Material Adverse Effect, and neither the Company nor any such Subsidiary has received any written notice of proceedings relating to the revocation or modification of any such certificate, authorization or permit.

(o) <u>Foreign Corrupt Practices</u>. Neither the Company, nor any of its Subsidiaries, nor, to the Company's Knowledge, any director, officer, agent, employee or other Person acting on behalf of the Company or any of its Subsidiaries has, in the course of its actions for, or on behalf of, the Company or any of its Subsidiaries (i) used any corporate funds for any unlawful contribution, gift, entertainment or other unlawful expenses relating to political activity; (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee from corporate funds; (iii) violated or is in violation of any provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended; or (iv) made any unlawful bribe, rebate, payoff, influence payment, kickback or other unlawful payment to any foreign or domestic government official or employee.

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(p) <u>Sarbanes-Oxley Act</u>. The Company is in compliance in all material respects with any and all applicable requirements of the Sarbanes-Oxley Act of 2002, as amended, that are effective as of the date hereof, and any and all applicable rules and regulations promulgated by the SEC thereunder that are effective as of the date hereof.

(q) <u>Transactions With Affiliates</u>. Except as disclosed in the SEC Reports, none of the officers, directors or employees of the Company or any of its Subsidiaries is presently a party to any transaction with the Company or any of its Subsidiaries (other than for ordinary course services as employees, officers or directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any such officer, director or employee or, to the knowledge of the Company or any of its Subsidiaries, any corporation, partnership, trust or other entity in which any such officer, director, or employee has a substantial interest or is an officer, director, employee, trustee or partner.

(r) <u>Equity Capitalization</u>. As of the date hereof, the authorized capital stock of the Company consists of (i) 30,000,000 shares of Common Stock, of which as of the date hereof, 11,863,758 shares are issued and outstanding, 215,000 shares are reserved for issuance pursuant to the Company's stock option and purchase plans and no shares are reserved for issuance pursuant to securities (other than the aforementioned options and the Warrants) exercisable or exchangeable for, or convertible into, Common Stock, and (ii) 20,000,000 shares of preferred stock, par value $0.0001 per share, of which no shares are issued and outstanding. The Company has duly and validly obtained all required approvals of its Board of Directors and stockholders for such authorized capitalization, including approval of an amendment to the Certificate of Incorporation (as defined below) to increase the authorized Common Stock from 30,000,000 shares to 60,000,000 shares (the "Required Approval"). All of such outstanding shares have been, or upon issuance will be, validly issued and are fully paid and nonassessable. Except as disclosed in (i) Schedule 3(r)(i), none of the Company's capital stock is subject to preemptive rights or any other similar rights or any liens or encumbrances suffered or permitted by the Company; (ii) Schedule 3(r)(ii), there are no outstanding options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to issue additional shares of capital stock of the Company or any of its Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any character whatsoever relating to, or securities or rights convertible into, or exercisable or exchangeable for, any shares of capital stock of the Company or any of its Subsidiaries; (iii) Schedule 3(r)(iii), there are no outstanding debt securities, notes, credit agreements, credit facilities or other agreements, documents or instruments evidencing Indebtedness of the Company or any of its Subsidiaries or by which the Company or any of its Subsidiaries is or may become bound; (iv) Schedule 3(r)(iv), there are no financing statements securing obligations in any material amounts, either singly or in the aggregate, filed in connection with the Company or any of its Subsidiaries; (v) Schedule 3(r)(v) or pursuant to the Registration Rights Agreement, there are no agreements or arrangements under which the Company or any of its Subsidiaries is obligated to register the sale of any of their securities under the 1933 Act; (vi) Schedule 3(r)(vi), there are no outstanding securities or instruments of the Company or any of its Subsidiaries which contain any redemption or similar provisions, and there are no contracts, commitments, understandings or arrangements by which the Company or any of its Subsidiaries is or may become bound to redeem a security of the Company or any of its Subsidiaries; (vii) Schedule 3(r)(vii), there are no securities or instruments containing anti-dilution or similar provisions that will be triggered by the issuance of the Securities; (viii) Schedule 3(r)(viii), neither the Company nor any Subsidiary has any stock appreciation rights or "phantom stock" plans or agreements or any similar plan or agreement; and (ix) Schedule 3(r)(ix), the Company and its Subsidiaries have no liabilities or obligations required to be disclosed in the SEC Documents but not so disclosed in the SEC Documents, other than those incurred in the ordinary course of the Company's or any of its Subsidiary's' respective businesses and which, individually or in the aggregate, do not or would not be reasonably expected to have a Material Adverse Effect. The SEC Documents contain true, correct and complete copies of the Company's Certificates of Incorporation, as amended and as in effect on the date hereof (the "Certificate of Incorporation"), and the Company's Bylaws, as amended and as in effect on the date hereof (the "Bylaws"), and the terms of all securities convertible into, or exercisable or exchangeable for shares of Common Stock and the material rights of the holders thereof in respect thereto.

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(s) <u>Indebtedness and Other Contracts</u>. Neither the Company nor any of its Subsidiaries (i) except as disclosed in Schedule 3(s)(i), has any outstanding Indebtedness (as defined below), (ii) except as disclosed in Schedule 3(s)(ii), is a party to any contract, agreement or instrument, the violation of which, or default under which, by the other party(ies) to such contract, agreement or instrument would reasonably be expected to have an Material Adverse Effect, (iii) except as disclosed in Schedule 3(s)(iii), is in violation of any term of or in default under any contract, agreement or instrument relating to any Indebtedness, except where such violations and defaults would not reasonably be expected to result, individually or in the aggregate, in a Material Adverse Effect, or (iv) except as disclosed in Schedule 3(s)(iv), is a party to any contract, agreement or instrument relating to any Indebtedness, the performance of which, in the judgment of the Company's officers, has or is expected to have a Material Adverse Effect. For purposes of this Agreement: (x) "Indebtedness" of any Person means, without duplication (A) all indebtedness for borrowed money in excess of $100,000, and excluding any trade accounts payable in the ordinary course of business, (B) all obligations issued, undertaken or assumed as the deferred purchase price of property or services, including, without limitation, "capital leases" in accordance with GAAP in excess of $100,000 (other than trade payables entered into in the ordinary course of business consistent with past practice), (C) all reimbursement or payment obligations with respect to letters of credit, surety bonds and other similar instruments not incurred in the ordinary course of business, (D) all obligations in excess of $100,000 evidenced by notes, bonds, debentures or similar instruments, including obligations so evidenced incurred in connection with the acquisition of property, assets or businesses, (E) all indebtedness in excess of $100,000 created or arising under any conditional sale or other title retention agreement, or incurred as financing, in either case with respect to any property or assets acquired with the proceeds of such indebtedness (even though the rights and remedies of the seller or bank under such agreement in the event of default are limited to repossession or sale of such property), (F) all monetary obligations in excess of $100,000 under any leasing or similar arrangement which, in connection with GAAP, consistently applied for the periods covered thereby, is classified as a capital lease, (G) all indebtedness referred to in clauses (A) through (F) above secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any mortgage, deed of trust, lien, pledge, charge, security interest or other encumbrance of any nature whatsoever in or upon any property or assets (including accounts and contract rights) with respect to any asset or property owned by any Person, even though the Person which owns such assets or property has not assumed or become liable for the payment of such indebtedness, and (H) all Contingent Obligations in respect of indebtedness or obligations of others of the kinds referred to in clauses (A) through (G) above; and (y) "Contingent Obligation" means, as to any Person, any direct or indirect liability, contingent or otherwise, of that Person with respect to any Indebtedness, lease, dividend or other obligation of another Person if the primary purpose or intent of the Person incurring such liability, or the primary effect thereof, is to provide assurance to the obligee of such liability that such liability will be paid or discharged, or that any agreements relating thereto will be complied with, or that the holders of such liability will be protected (in whole or in part) against loss with respect thereto.

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(t) <u>Absence of Litigation</u>. Except as disclosed in the SEC Reports or set forth in Schedule 3(t), there is no action, suit, proceeding, inquiry or investigation before or by the Principal Market, any court, public board, government agency, self-regulatory organization or body pending or, to the knowledge of the Company, threatened against or affecting the Company or any of its Subsidiaries, the Common Stock or any of the Company's Subsidiaries or any of the Company's or its Subsidiaries' officers or directors, whether of a civil or criminal nature or otherwise, in their capacities as such, that, if adversely determined, would reasonably be expected to have a Material Adverse Effect.

(u) <u>Insurance</u>. The Company and each of its Subsidiaries are insured against such losses and risks and in such amounts as management of the Company believes to be prudent and customary in the businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor any such Subsidiary has been refused any insurance coverage sought or applied for. The Company believes that it either will be able to renew its existing insurance coverage as and when such coverage expires or obtain similar coverage from similar insurers as may be necessary to continue its business, in each case, at a cost that would not reasonably be expected to have a Material Adverse Effect.

(v) <u>Employee Relations</u>.

(i) Neither the Company nor any of its Subsidiaries is a party to any collective bargaining agreement or employs any member of a union. To the Company's Knowledge, the Company and its Subsidiaries' relations with their respective employees are good. No executive officer of the Company or any of its Subsidiaries (as defined in Rule 501(f) of the 1933 Act) has notified the Company or any such Subsidiary that such officer intends to leave the Company or any such Subsidiary or otherwise terminate such officer's employment with the Company or any such Subsidiary. No executive officer of the Company or any of its Subsidiaries, to the Knowledge of the Company or any of its Subsidiaries, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement, non-competition agreement, or any other contract or agreement or any restrictive covenant, and, to the Knowledge of the Company, the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability with respect to any of the foregoing matters.

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(ii) The Company and its Subsidiaries are in material compliance with all federal, state, local and foreign laws and regulations respecting labor, employment and employment practices and benefits, terms and conditions of employment and wages and hours, except where failure to be in compliance would not, either individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

(w) <u>Title</u>. The Company and its Subsidiaries do not own any real property. The Company and its Subsidiaries have good and marketable title to all personal property owned by them which is material to the business of the Company and its Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as do not materially affect the value of such property and do not interfere with the use made and proposed to be made of such property by the Company and any of its Subsidiaries. Any real property and facilities held under lease by the Company and any of its Subsidiaries are held by them under valid, subsisting and enforceable leases with such exceptions as are not material and do not interfere with the use made and proposed to be made of such property and buildings by the Company and its Subsidiaries.

(x) <u>Intellectual Property Rights</u>. The Company and its Subsidiaries own or possess adequate rights or licenses to use all trademarks, trade names, service marks, service mark registrations, service names, original works of authorship, patents, patent rights, copyrights, inventions, licenses, approvals, governmental authorizations, trade secrets and other intellectual property rights and all applications and registrations therefor ("Intellectual Property Rights") necessary to conduct their respective businesses as now conducted and as presently proposed to be conducted, except to the extent as would not reasonably be expected to have a Material Adverse Effect. Except as set forth in Schedule 3(x), none of the Company's or its Subsidiaries' material Intellectual Property Rights have expired or terminated or have been abandoned or are expected to expire or terminate or are expected to be abandoned, within three years from the date of this Agreement. To the Company's Knowledge, the Company and its Subsidiaries are not currently infringing on the Intellectual Property Rights of others. There is no claim, action or proceeding being made or brought, or, to the Company's Knowledge, otherwise threatened in writing, against the Company or any of its Subsidiaries regarding its Intellectual Property Rights. To the Company's knowledge, there are no facts or circumstances which might give rise to any of the foregoing infringements or claims, actions or proceedings, except to the extent as would not reasonably be expected to have a Material Adverse Effect. The Company and its Subsidiaries have taken reasonable security measures to protect the secrecy, confidentiality and value of all of their Intellectual Property Rights.

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(y) <u>Environmental Laws</u>. The Company and its Subsidiaries (i) are in compliance with any and all Environmental Laws (as hereinafter defined), (ii) have received all permits, licenses or other approvals required of them under applicable Environmental Laws to conduct their respective businesses and (iii) are in compliance with all terms and conditions of any such permit, license or approval where, in each of the foregoing clauses (i), (ii) and (iii), the failure to so comply could be reasonably expected to have, individually or in the aggregate, a Material Adverse Effect. The term "Environmental Laws" means all federal, state, local or foreign laws relating to pollution or protection of human health or the environment (including, without limitation, ambient air, surface water, groundwater, land surface or subsurface strata), including, without limitation, laws relating to emissions, discharges, releases or threatened releases of chemicals, pollutants, contaminants, or toxic or hazardous substances or wastes (collectively, "Hazardous Materials") into the environment, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling of Hazardous Materials, as well as all authorizations, codes, decrees, demands or demand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans or regulations issued, entered, promulgated or approved thereunder.

(z) <u>Subsidiary Rights</u>. The Company or one of its Subsidiaries has the unrestricted right to vote, and (subject to limitations imposed by applicable law) to receive dividends and distributions on, all capital securities of its Subsidiaries as owned by the Company or such Subsidiary.

(aa) <u>Investment Company Status</u>. Neither the Company nor any Subsidiary is, and upon consummation of the sale of the Securities, and for so long any Buyer holds any Securities, will be, an "investment company," a company controlled by an "investment company" or an "affiliated person" of, or "promoter" or "principal underwriter" for, an "investment company" as such terms are defined in the Investment Company Act of 1940, as amended.

(bb) <u>Tax Status</u>. The Company and each of its Subsidiaries (i) has made or filed all U.S. federal, state and foreign income and all other tax returns, reports and declarations required by any jurisdiction to which it is subject, (ii) has paid all taxes and other governmental assessments and charges that are material in amount, shown or determined to be due on such returns, reports and declarations, except those being contested in good faith and (iii) has set aside on its books provision reasonably adequate for the payment of all taxes for periods subsequent to the periods to which such returns, reports or declarations apply. There are no unpaid taxes in any material amount claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company know of no basis for any such claim.

(cc) <u>Internal Accounting and Disclosure Controls</u>. The Company and each of its Subsidiaries maintain a system of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management's general or specific authorizations, (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with generally accepted accounting principles and to maintain asset and liability accountability, (iii) access to assets or incurrence of liabilities is permitted only in accordance with management's general or specific authorization and (iv) the recorded accountability for assets and liabilities is compared with the existing assets and liabilities at reasonable intervals and appropriate action is taken with respect to any difference. The Company maintains disclosure controls and procedures (as such term is defined in Rule 13a-15 under the 1934 Act) that are effective in ensuring that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is recorded, processed, summarized and reported, within the time periods specified in the rules and forms of the SEC, including, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in the reports that it files or submits under the 1934 Act is accumulated and communicated to the Company's management, including its principal executive officer or officers and its principal financial officer or officers, as appropriate, to allow timely decisions regarding required disclosure. During the twelve months prior to the date hereof neither the Company nor any of its Subsidiaries has received any written notice or correspondence from any accountant relating to any material weakness in any part of the system of internal accounting controls of the Company or any of its Subsidiaries.

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(dd) <u>Off Balance Sheet Arrangements</u>. There is no transaction, arrangement, or other relationship between the Company and an unconsolidated or other off balance sheet entity that is required to be disclosed by the Company in its 1934 Act filings and is not so disclosed or that otherwise would be reasonably likely to have a Material Adverse Effect.

(ee) <u>Eligibility for Registration</u>. As of the date hereof, the Company is eligible to register the Common Shares and Warrant Shares for resale by the Buyers using a Form S-1 promulgated under the 1933 Act, or similar form that allows for the continuous offering for resale of such Common Shares and Warrant Shares.

(ff) <u>Transfer Taxes</u>. On the Closing Date, all stock transfer or other taxes (other than income or similar taxes) which are required to be paid in connection with the sale and transfer of the Securities to be sold to each Buyer hereunder will be, or will have been, fully paid or provided for by the Company, and all laws imposing such taxes will be or will have been complied with.

(gg) <u>Manipulation of Price</u>. The Company has not, and to the Company's Knowledge, no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result, or that would reasonably be expected to cause or result, in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Securities, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Securities, or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company.

(hh) <u>U.S. Real Property Holding Corporation</u>. The Company is not, has never been, and so long as any Securities remain outstanding, shall not become, a U.S. real property holding corporation within the meaning of Section 897 of the Internal Revenue Code of 1986, as amended (the "Code").

(ii) <u>Bank Holding Company Act</u>. Neither the Company nor any of its Subsidiaries or affiliates is subject to the Bank Holding Company Act of 1956, as amended (the "BHCA") and to regulation by the Board of Governors of the Federal Reserve System (the "Federal Reserve"). Neither the Company nor any of its Subsidiaries or affiliates owns or controls, directly or indirectly, five percent (5%) or more of the outstanding shares of any class of voting securities or twenty-five percent (25%) or more of the total equity of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve. Neither the Company nor any of its Subsidiaries or affiliates exercises a controlling influence over the management or policies of a bank or any entity that is subject to the BHCA and to regulation by the Federal Reserve.

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(jj) <u>Shell Company Status</u>. The Company is not, and has never been, an issuer identified in Rule 144(i)(1) of the 1933 Act.

(kk) <u>Stock Option Plans</u>. Each stock option granted by the Company was granted (i) in accordance with the terms of the applicable stock option plan of the Company and (ii) with an exercise price at least equal to the fair market value of the Common Stock on the date such stock option would be considered granted under GAAP and applicable law. No stock option granted under the Company's stock option plan has been backdated. The Company has not knowingly granted, and there is no and has been no policy or practice of the Company to knowingly grant, stock options prior to, or otherwise knowingly coordinate the grant of stock options with, the release or other public announcement of material information regarding the Company or its Subsidiaries or their financial results or prospects.

(ll) <u>No Disagreements with Accountants and Lawyers</u>. There are no material disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the Company and the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers which could affect the Company's ability to perform any of its obligations under any of the Transaction Documents.

(mm) <u>Compliance with Anti-Money Laundering Laws</u>. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements and all other applicable U.S. and non-U.S. anti-money laundering laws and regulations, including, but not limited to, those of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the USA Patriot Act of 2001 and the applicable money laundering statutes of all applicable jurisdictions, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the "Anti-Money Laundering Laws"), and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Anti-Money Laundering Laws is pending or, to the Knowledge of the Company, threatened.

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(nn) <u>No Conflicts with Sanctions Laws</u>. Neither the Company nor any of the Subsidiaries has made any contribution or other payment to any official of, or candidate for, any federal, state or foreign office in violation of any law which violation is required to be disclosed in the Prospectus. Neither the Company nor any of its Subsidiaries, nor, to the Knowledge of the Company, any director, officer, employee, agent, affiliate or other person associated with or acting on behalf of the Company or any of its Subsidiaries or affiliates is, or is directly or indirectly owned or controlled by, a Person that is currently the subject or the target of any sanctions administered or enforced by the U.S. government (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury ("OFAC") or the U.S. Departments of State or Commerce and including, without limitation, the designation as a "specially designated national" or "blocked person"), the United Nations Security Council ("UNSC"), the European Union, Her Majesty's Treasury ("HMT") or any other relevant sanctions authority (collectively, "Sanctions"), or is the Company, any of its Subsidiaries located, organized or resident in a country or territory that is the subject or target of a comprehensive embargo or Sanctions prohibiting trade with the country or territory, including, without limitation, Cuba, Iran, North Korea and Sudan (each, a "Sanctioned Country"); no action of the Company or any of its Subsidiaries in connection with (i) the execution, delivery and performance of this Agreement and the other Transaction Documents, (ii) the issuance and sale of the Securities or (iii) the direct or indirect use of proceeds from the Securities or the consummation of any other transaction contemplated hereby or by the other Transaction Documents or the fulfillment of the terms hereof or thereof, will result in the proceeds of the transactions contemplated hereby and by the other Transaction Documents being used, or loaned, contributed or otherwise made available, directly or indirectly, to any Subsidiary, joint venture partner or other person or entity, for the purpose of (i) unlawfully funding or facilitating any activities of or business with any person that, at the time of such funding or facilitation, is the subject or target of Sanctions, (ii) unlawfully funding or facilitating any activities of or business in any Sanctioned Country or (iii) in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as underwriter, advisor, investor or otherwise) of Sanctions. For the past five years, the Company and its Subsidiaries have not knowingly engaged in and are not now knowingly engaged in any dealings or transactions with any person that at the time of the dealing or transaction is or was the subject or the target of Sanctions or with any Sanctioned Country.

(oo) <u>Anti-Bribery</u>. Neither the Company, nor any of its Subsidiaries or affiliates, nor, to the Knowledge of the Company, any director, officer, agent, employee or other person associated with or acting on behalf of the Company, or any of its Subsidiaries or affiliates, has (i) used any funds for any unlawful contribution, gift, entertainment or other unlawful expense relating to political activity, (ii) made any direct or indirect unlawful payment to any foreign or domestic government official or employee, to any employee or agent of a private entity with which the Company does or seeks to do business (a "Private Sector Counterparty") or to foreign or domestic political parties or campaigns from corporate funds, (iii) violated or is in violation of any provision of any applicable law or regulation implementing the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions or any applicable provision of the U.S. Foreign Corrupt Practices Act of 1977, as amended (the "FCPA"), the U.K Bribery Act 2010, or any other similar law of any other jurisdiction in which the Company operates its business, including, in each case, the rules and regulations thereunder, (iv) taken, is currently taking or will take any action in furtherance of an offer, payment, gift or anything else of value, directly or indirectly, to any person while knowing that all or some portion of the money or value will be offered, given or promised to anyone to improperly influence official action, to obtain or retain business or otherwise to secure any improper advantage or (v) otherwise made any bribe, rebate, payoff, influence payment, unlawful kickback or other unlawful payment; the Company and each of its respective Subsidiaries has instituted and has maintained, and will continue to maintain, policies and procedures reasonably designed to promote and achieve compliance with the laws referred to in (iii) above and with this representation and warranty; and none of the Company, nor any of its Subsidiaries or affiliates will directly or indirectly use the proceeds of the Securities or lend, contribute or otherwise make available such proceeds to any Subsidiary, affiliate, joint venture partner or other person or entity for the purpose of financing or facilitating any activity that would violate the laws and regulations referred to in (iii) above.

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(pp) <u>No Disqualification Events</u>. With respect to Securities to be offered and sold hereunder in reliance on Rule 506(b) under the 1933 Act ("Regulation D Securities"), none of the Company, any of its predecessors, any affiliated issuer, any director, executive officer, other officer of the Company participating in the offering hereunder, nor, to the Company's Knowledge, any beneficial owner of 20% or more of the Company's outstanding voting equity securities, calculated on the basis of voting power, nor, to the Company's Knowledge, any promoter (as that term is defined in Rule 405 under the 1933 Act) connected with the Company in any capacity at the time of sale (each, an "Issuer Covered Person" and, together, "Issuer Covered Persons") is subject to any of the "Bad Actor" disqualifications described in Rule 506(d)(1)(i) to (viii) under the 1933 Act (a "Disqualification Event"), except for a Disqualification Event covered by Rule 506(d)(2) or (d)(3). The Company has exercised reasonable care to determine whether any Issuer Covered Person is subject to a Disqualification Event. The Company has complied, to the extent applicable, with its disclosure obligations under Rule 506(e), and has furnished to the Buyers a copy of any disclosures provided thereunder.

(qq) <u>Other Covered Persons</u>. The Company is not aware of any Person that has been or will be paid (directly or indirectly) remuneration for solicitation of Buyers or potential purchasers in connection with the sale of any Regulation D Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>COVENANTS</u>.

(a) <u>Best Efforts</u>. Each party shall use its best efforts timely to satisfy each of the covenants and the conditions to be satisfied by it as provided in Sections 6 and 7 of this Agreement.

(b) <u>Form D and Blue Sky</u>. If required by applicable Law, the Company agrees to file a Form D with respect to the Securities as required under Regulation D. The Company shall, on or before the Closing Date, take such action as the Company shall reasonably determine is necessary in order to obtain an exemption for or to qualify the Securities for sale to the Buyers at the Closing pursuant to this Agreement under applicable securities or "Blue Sky" laws of the states of the United States (or to obtain an exemption from such qualification), and shall provide evidence of any such action so taken to the Buyers on or prior to the Closing Date. The Company shall make all filings and reports relating to the offer and sale of the Securities required under applicable securities or "Blue Sky" laws of the states of the United States following the Closing Date.

(c) <u>Reports Under the 1934 Act</u>. With a view to making available to the Investors the benefits of Rule 144 or any other similar rule or regulation of the SEC that may at any time permit the Buyers to sell securities of the Company to the public without registration, the Company agrees to:

(i) make and keep public information available, as those terms are understood and defined in Rule 144;

(ii) file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and

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(iii) furnish to each Buyer so long as such Buyer owns Securities, promptly upon request, (i) a written statement by the Company, if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit such Buyer to sell such securities pursuant to Rule 144 without registration.

(d) <u>Use of Proceeds</u>. The Company will use the proceeds from the sale of the Securities for working capital and general corporate purposes.

(e) <u>Listing</u>. The Company shall promptly secure the listing of all the Common Shares and Warrant Shares upon the automated electronic interdealer quotation system upon which the Common Stock is then listed (subject to official notice of issuance) and shall maintain such listing of all Common Shares and Warrant Shares issuable under the terms of the Transaction Documents. The Company shall use commercially reasonable efforts to (i) maintain the authorization for quotation of the Common Stock on the Principal Market and (ii) avoid the delisting or suspension of the Common Stock on the Principal Market. The Company shall pay all fees and expenses in connection with satisfying its obligations under this Section 4(e).

(f) <u>Fees</u>. The Company shall reimburse JCP (a Buyer) and CRC (a Buyer) or their respective designee(s) (in addition to any other expense amounts paid to any Buyer or its counsel prior to the date of this Agreement) for all costs and expenses incurred in connection with the transactions contemplated by the Transaction Documents (including all legal fees and disbursements in connection therewith, documentation and implementation of the transactions contemplated by the Transaction Documents and due diligence in connection therewith), which amount may be withheld by such Buyer from its purchase price for any Common Shares purchased at the Closing to the extent not previously reimbursed by the Company and which shall not exceed $165,000 as to JCP and $165,000 as to CRC without the prior approval of the Company. The Company shall be responsible for the payment of any placement agent's fees, financial advisory fees, or broker's commissions (other than for Persons engaged by any Buyer) relating to or arising out of the transactions contemplated hereby. The Company shall pay, and hold each Buyer harmless against, any liability, loss or expense (including, without limitation, reasonable attorney's fees and out-of-pocket expenses) arising in connection with any claim relating to any such payment. Except as otherwise set forth in the Transaction Documents, each party to this Agreement shall bear its own expenses in connection with the sale of the Securities to the Buyers.

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(g) <u>Disclosure of Transactions and Other Material Information</u>. The Company shall promptly issue a press release reasonably acceptable to the Buyers and file a Current Report on Form 8-K describing the terms of the transactions contemplated by the Transaction Documents in the form required by the 1934 Act and attaching the material Transaction Documents (including, without limitation, this Agreement (and all non-confidential schedules and exhibits to this Agreement) as an exhibit to such filing (including all attachments, the "8-K Filing"). Neither the Company, its Subsidiaries nor any Buyer shall issue any press releases or any other public statements with respect to the transactions contemplated hereby without the prior written approval of the other party; provided, however, that the Company shall be entitled, without the prior approval of any Buyer, to make any press release or other public disclosure with respect to such transactions (i) in substantial conformity with the 8-K Filing and contemporaneously therewith and (ii) as is required by applicable law and regulations (provided that in the case of clause (i) each Buyer shall be consulted by the Company in connection with any such press release or other public disclosure prior to its release). Except as required by applicable law or statute or otherwise for the Registration Statement required to be filed pursuant to the Registration Rights Agreement, without the prior written consent of any applicable Buyer, neither the Company nor any of its Subsidiaries or affiliates shall disclose the name of such Buyer in any filing, announcement, release or otherwise.

(h) <u>Conduct of Business</u>. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where such violations would not result, either individually or in the aggregate, in a Material Adverse Effect.

(i) <u>Notice of Disqualification Events</u>. The Company will notify the Buyers in writing, prior to the Closing Date of (i) any Disqualification Event relating to any Issuer Covered Person and (ii) any event that would, with the passage of time, become a Disqualification Event relating to any Issuer Covered Person.

(j) <u>FAST Compliance</u>. While any Common Shares and/or Warrant Shares are outstanding, the Company shall maintain a transfer agent that participates in the DTC Fast Automated Securities Transfer Program.

(k) <u>Board of Directors</u>. Each of JCP and CRC shall have the right to designate three (3) directors for election to the Company's Board of Directors so long as such party owns at least 30% of the shares of Common Stock such party acquired pursuant to this Agreement and the transactions contemplated hereby. The initial designees of JCP shall be Matt Powalski, Jacob Saour and Rocky Sullivan and the initial designees of CRC shall be Denver Smith and Kyle Kidd, and the Company shall cause all such individuals to be elected to the Board of Directors effective as of the Closing Date. In the event any of its designees is unable to serve, or no longer serves, as a director for any reason, each of JCP and CRC shall have the right to designate a replacement director who shall be appointed to the Board of Directors. Immediately following the appointment of each party's designee to the Board of Directors, the Company shall (a) add such designee as a covered party under the Company's current director and officer insurance policy, and (b) deliver to such designee an indemnification agreement, if applicable, duly executed by the Company and in the same form entered into by the Company with each of the Company's other directors.

(l) <u>Reservation of Shares</u>. So long as any Buyer owns any Securities, the Company shall take all action necessary to at all times have authorized, and reserved for the purpose of issuance, no less than the Required Reserve Amount. If at any time the number of shares of Common Stock authorized and reserved for issuance is not sufficient to meet the Required Reserved Amount, the Company will promptly take all corporate action necessary to authorize and reserve a sufficient number of shares, including, without limitation, calling a special meeting of stockholders to authorize additional shares to meet the Company's obligations under Section 3(c), in the case of an insufficient number of authorized shares, obtain stockholder approval of an increase in such authorized number of shares, and voting the management shares of the Company in favor of an increase in the authorized shares of the Company to ensure that the number of authorized shares is sufficient to meet the Required Reserved Amount.

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(m) <u>Closing Documents</u>. On or prior to thirty (30) calendar days after the Closing Date, the Company agrees to deliver, or cause to be delivered, to each Buyer and Olshan Frome Wolosky LLP a complete closing set of the executed Transaction Documents, Securities and any other documents required to be delivered to any party pursuant to Section 7 hereof or otherwise.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>REGISTER; TRANSFER AGENT INSTRUCTIONS</u>.

(a) <u>Register</u>. The Company shall maintain at its principal executive offices (or such other office or agency of the Company as it may designate by notice to each holder of Securities), a register for the Warrants in which the Company shall record the name and address of the Person in whose name the Warrants have been issued (including the name and address of each transferee) and the number of Warrant Shares issuable upon exercise of the Warrants held by such Person. The Company shall keep the register open and available at all times during business hours for inspection of any Buyer or its legal representatives.

(b) <u>Transfer Agent Instructions</u>. If a Buyer effects a sale, assignment or transfer of the Securities in accordance with Section 2(f), the Company shall permit the transfer and shall promptly instruct its transfer agent to issue one or more certificates or credit shares to the applicable balance accounts at DTC in such name and in such denominations as specified by such Buyer to effect such sale, transfer or assignment. In the event that such sale, assignment or transfer involves Common Shares or Warrant Shares sold, assigned or transferred pursuant to an effective registration statement or pursuant to Rule 144, the transfer agent shall issue such Securities to the Buyer, assignee or transferee, as the case may be, without any restrictive legend. The Company acknowledges that a breach by it of its obligations hereunder will cause irreparable harm to a Buyer. Accordingly, the Company acknowledges that the remedy at law for a breach of its obligations under this Section 5(a) will be inadequate and agrees, in the event of a breach or threatened breach by the Company of the provisions of this Section 5(a), that a Buyer shall be entitled, in addition to all other available remedies, to an order and/or injunction restraining any breach and requiring immediate issuance and transfer, without the necessity of showing economic loss and without any bond or other security being required.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>CONDITIONS TO THE COMPANY</u><u>'</u><u>S OBLIGATION TO SELL</u>. The obligation of the Company hereunder to issue and sell the Common Shares and Warrants to each Buyer at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company's sole benefit and may be waived by the Company at any time in its sole discretion by providing each Buyer with prior written notice thereof:

(i) Such Buyer shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

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(ii) Such Buyer shall have delivered its Purchase Price to the Company (less, in the case of each of JCP and CRC, the amounts withheld with respect to JCP and CRC pursuant to Section 4(f)), for the Common Shares and Warrants being purchased by such Buyer at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

(iii) The representations and warranties of such Buyer shall be true and correct as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date which shall be true and correct as of such specified date), and such Buyer shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by such Buyer at or prior to the Closing Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>CONDITIONS TO EACH BUYER</u><u>'</u><u>S OBLIGATION TO PURCHASE</u>. The obligation of each Buyer hereunder to purchase the Common Shares and Warrants at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for each Buyer's sole benefit and may be waived by such Buyer at any time in its sole discretion by providing the Company with prior written notice thereof:

(i) The Company and each of its Subsidiaries shall have duly executed and delivered to such Buyer each of the following documents to which it is a party: (A) each of the Transaction Documents, and (B) the Common Shares and Warrants being purchased by such Buyer at the Closing pursuant to this Agreement.

(ii) The Company shall have delivered to such Buyer a certificate evidencing the formation and good standing of the Company in its jurisdiction of formation issued by the Secretary of State (or comparable office) of such jurisdiction, as of a date within ten (10) days of the Closing Date.

(iii) The Company shall have delivered to such Buyer a certificate, executed by the Secretary of the Company and dated as of the Closing Date, as to (i) the resolutions consistent with Section 3(b) as adopted by the Company's Board of Directors in a form reasonably acceptable to such Buyer, (ii) resolutions of each of the Company's Board of Directors and stockholders with respect to the Required Approval, in a form reasonably acceptable to such Buyer, (iii) the Certificate of Incorporation of the Company and (iv) the Bylaws of the Company, each as in effect at the Closing, in the form attached hereto as Exhibit A.

(iv) The representations and warranties of the Company shall be true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect, which shall be accurate in all respects) as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date which shall be true and correct as of such specified date) and the Company shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing Date (except for covenants, agreement and conditions that are qualified by materiality or Material Adverse Effect, which shall be performed, satisfied or complied with, in all respects). Such Buyer shall have received a certificate, executed by an executive officer of the Company, dated as of the Closing Date, to the foregoing effect and as to such other matters as may be reasonably requested by such Buyer in the form attached hereto as Exhibit B.

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(v) The Company shall have delivered to such Buyer a letter from the Company's transfer agent certifying the number of shares of Common Stock outstanding as of the business day immediately prior to the Closing Date.

(vi) The Common Stock (I) shall be designated for quotation or listed on the Principal Market and (II) shall not have been suspended, as of the Closing Date, by the SEC or the Principal Market from trading on the Principal Market nor shall suspension by the SEC or the Principal Market have been threatened, as of the Closing Date, either (A) in writing by the SEC or the Principal Market or (B) by falling below the minimum listing maintenance requirements of the Principal Market.

(vii) The Company shall have obtained all governmental, regulatory, stockholder or third-party consents and approvals, if any, necessary for the sale of the Securities.

(viii) Such Buyer shall have received the Company's wire instructions on Company's letterhead duly executed by an authorized officer of the Company.

(ix) Each of the Company's directors shall have delivered to such Buyer his or her resignation as a director of the Company effective as of the Closing Date in a form reasonably acceptable to such Buyer, and all required approvals shall have been obtained such that the Board, as of the Closing Date, will consist solely of the Chief Executive Officer and the individuals designated in Section 4(k).

(x) The transactions contemplated by the Proposal Letter, dated February 19, 2026, between Chatham Capital Management, LLC and the Company shall have been consummated in all material respects in accordance with the terms and conditions set forth therein.

(xi) The transactions contemplated by the Stock Purchase Agreement between certain Buyers party thereto and ETS Limited shall have been consummated in all material respects in accordance with the terms and conditions set forth therein.

(xii) The Company shall have caused to be delivered to the Buyers a legal opinion of the Disclosure Law Group, a Professional Corporation, in form and substance satisfactory to the Buyers.

(xiii) The Company shall have delivered to such Buyer such other documents relating to the transactions contemplated by this Agreement as such Buyer or its counsel may reasonably request.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>TERMINATION</u>. In the event that the Closing shall not have occurred with respect to a Buyer on or before ten (10) Business Days from the date hereof due to the Company's or such Buyer's failure to satisfy the conditions set forth in Sections 6 and 7 above (and the nonbreaching party's failure to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date by delivering a written notice to that effect to each other party to this Agreement and without liability of any party to any other party; provided, however, that if this Agreement is terminated pursuant to this Section 8, the Company shall remain obligated to reimburse JCP and CRC or their respective designee(s), as applicable, for the expenses described in Section 4(f) above.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>MISCELLANEOUS</u>.

(a) <u>Governing Law; Jurisdiction; Jury Trial</u>. All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

(b) <u>Counterparts</u>. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile or .pdf signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile or .pdf signature.

(c) <u>Headings</u>. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

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(d) <u>Severability</u>. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

(e) <u>Entire Agreement; Amendments</u>. This Agreement and the other Transaction Documents supersede all other prior oral or written agreements between the Buyers, the Company, their affiliates and Persons acting on their behalf with respect to the subject matter hereof, and this Agreement, the other Transaction Documents and the instruments referenced herein and therein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor any Buyer makes any representation, warranty, covenant or undertaking with respect to such matters. Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Buyers purchasing a majority of the Common Shares. Any amendment or waiver effected in accordance with this Section 9(e) shall be binding upon each Buyer and holder of Securities and the Company. No such amendment shall be effective to the extent that it applies to less than all of the Buyers or holders of Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration (other than the reimbursement of legal fees) also is offered to all of the parties to the Transaction Documents. The Company has not, directly or indirectly, made any agreements with any Buyers relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Buyer has made any commitment or promise or has any other obligation to provide any financing to the Company or otherwise.

(f) <u>Notices</u>. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement or any of the other Transaction Document's must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon delivery, when sent by electronic mail (provided that the sending party does not receive an automated rejection notice); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and e-mail addresses for such communications shall be:

If to the Company:

Track Group, Inc.<br> 200 E. 5th Avenue, Suite 100<br> Naperville, Illinois 60563<br> Telephone: (877) 260-2010<br> Attention: Derrek Cassell<br> E-mail: <u>derek.cassell@trackgrp.com</u>

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With a copy to (for informational purposes only):

Disclosure Law Group, a Professional Corporation

600 West Broadway, Suite 700

San Diego, CA 92101<br> Telephone: (619) 272-7064<br> Attention: Jack Kennedy<br> E-mail: <u>jkennedy@disclosurelawgroup.com</u>

If to the Transfer Agent:

Equiniti Trust Company, LLC<br> 48 Wall Street, Floor 23

New York, NY 10005<br> E-mail: <u>admin44@equiniti.com</u>

If to a Buyer, to its address and e-mail address set forth on the Schedule of Buyers, with copies to such Buyer's representatives as set forth on the Schedule of Buyers,

with a copy (for informational purposes only) to:

Olshan Frome Wolosky LLP<br> 1325 Avenue of the Americas<br> New York, New York 10019<br> Telephone: (212) 451-2300<br> Attention: Ryan P. Nebel, Esq. and Michael R. Neidell, Esq.<br> E-mail: <u>rnebel@olshanlaw.com</u> and <u>mneidell@olshanlaw.com</u>

or to such other address and/or e-mail address and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) electronically generated by the sender's e-mail containing the time and date of such transmission and recipient's email address or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by email or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

(g) <u>Successors and Assigns</u>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any purchasers of the Common Shares and the Warrants. The Company shall not assign this Agreement or any rights or obligations hereunder without the prior written consent of the Buyers. Upon one (1) days' prior written notice to the Company, a Buyer may assign some or all of its rights hereunder without the consent of the Company, in which event, at the end of such one (1) day notice period, such assignee shall be deemed to be a Buyer hereunder with respect to such assigned rights.

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(h) <u>No Third Party Beneficiaries</u>. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person, except that each Indemnitee shall have the right to enforce the obligations of the Company with respect to Section 9(k).

(i) <u>Survival</u>. Unless this Agreement is terminated under Section 8, the representations and warranties of the Company contained in Section 3, the representations and warranties of the Buyers contained in Section 2, and the agreements and covenants set forth in Sections 4, 5 and 9 shall survive the Closing. Each Buyer shall be responsible only for its own representations, warranties, agreements and covenants hereunder.

(j) <u>Further Assurances</u>. Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

(k) <u>Indemnification</u>. In consideration of each Buyer's execution and delivery of the Transaction Documents and acquiring the Securities thereunder and in addition to all of the Company's other obligations under the Transaction Documents, the Company shall defend, protect, indemnify and hold harmless each Buyer and each other holder of the Securities and all of their respective stockholders, partners, members, officers, directors, employees and direct or indirect investors and any of the foregoing Persons' agents or other representatives (including, without limitation, those retained in connection with the transactions contemplated by this Agreement) (collectively, the "Indemnitees") from and against any and all actions, causes of action, suits, claims, losses, costs, penalties, fees, liabilities and damages, and expenses in connection therewith (irrespective of whether any such Indemnitee is a party to the action for which indemnification hereunder is sought), and including reasonable attorneys' fees and disbursements (the "Indemnified Liabilities"), incurred by any Indemnitee as a result of, or arising out of, or relating to (a) any misrepresentation or breach of any representation or warranty made by the Company in any of the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (b) any breach of any covenant, agreement or obligation of the Company contained in any of the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby or (c) any cause of action, suit or claim brought or made against such Indemnitee by a third party (including for these purposes a derivative action brought on behalf of the Company) and arising out of or resulting from (i) the execution, delivery, performance or enforcement of any of the Transaction Documents or any other certificate, instrument or document contemplated hereby or thereby, (ii) any transaction financed or to be financed in whole or in part, directly or indirectly, with the proceeds of the issuance of the Securities, or (iii) the status of such Buyer or holder of the Securities as an investor in the Company pursuant to the transactions contemplated by the Transaction Documents. To the extent that the foregoing undertaking by the Company may be unenforceable for any reason, the Company shall make the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities that is permissible under applicable law. The Company will not be liable to any Buyer under this indemnity: (i) for any settlement by a Buyer in connection with any claim effected without the Company's prior written consent, which consent shall not be unreasonably withheld, conditioned or delayed; or (ii) to the extent, but only to the extent, that a claim is attributable to any Buyer's breach of any of the representations, warranties, covenants or agreements made by such Buyer in this Agreement or in the other Transaction Documents.

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(l) <u>No Strict Construction</u>. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

(m) <u>Remedies</u>. The Company, each Buyer and each holder of the Securities shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, each party hereto recognizes that, in the event that Buyers or the Company fail to perform, observe, or discharge any or all of such party's obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the other party hereto. Each of the Buyers and the Company therefore agree that each of the Company and the Buyers shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security.

(n) <u>Rescission and Withdrawal Right</u>. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever any Buyer exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then such Buyer may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

(o) <u>Payment Set Aside</u>. To the extent that the Company makes a payment or payments to the Buyers hereunder or pursuant to any of the other Transaction Documents or the Buyers enforce or exercise their rights hereunder or thereunder, and such payment or payments or the proceeds of such enforcement or exercise or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other Person under any law (including, without limitation, any bankruptcy law, foreign, state or federal law, common law or equitable cause of action), then to the extent of any such restoration the obligation or part thereof originally intended to be satisfied shall be revived and continued in full force and effect as if such payment had not been made or such enforcement or setoff had not occurred.

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(p) <u>Independent Nature of Buyers</u><u>'</u> <u>Obligations and Rights</u>. The obligations of each Buyer under any Transaction Document are several and not joint with the obligations of any other Buyer, and no Buyer shall be responsible in any way for the performance of the obligations of any other Buyer under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by any Buyer pursuant hereto or thereto, shall be deemed to constitute the Buyers as, and the Company acknowledges that the Buyers do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Buyers are in any way acting in concert or as a group, and the Company shall not assert any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the Buyers are not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The Company acknowledges and each Buyer confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Each Buyer shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Buyer to be joined as an additional party in any proceeding for such purpose.

**[Signature Page Follows]**

------

**IN WITNESS WHEREOF**, each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the date first written above.

---

| | |
|:---|:---|
| **COMPANY:** | **COMPANY:** |
| **TRACK GROUP, INC.** | **TRACK GROUP, INC.** |
| By:  |  |
|  | Name: |
|  | Title: |

---

*[Signature Page to Securities Purchase Agreement]*

------

**IN WITNESS WHEREOF**, each Buyer and the Company have caused their respective signature page to this Securities Purchase Agreement to be duly executed as of the date first written above.

---

| | |
|:---|:---|
| **BUYERS:** | **BUYERS:** |
| **JCP INVESTMENT PARTNERSHIP, LP** | **JCP INVESTMENT PARTNERSHIP, LP** |
| By: | JCP Investment Management, LLC, |
|  | Investment Manager |
| By:  |  |

---

Name: James C. Pappas <br> Title: Managing Member

---

| |
|:---|
| **JCP INVESTMENT MANAGEMENT, LLC** |
| By:  |

---

Name: James C. Pappas <br> Title: Managing Member

---

| | |
|:---|:---|
| **CRC FOUNDERS FUND, LP** | **CRC FOUNDERS FUND, LP** |
| By: | Carlson Ridge Capital, LLC, |
|  | Investment Manager |
| By:  |  |

---

Name: Denver Smith <br> Title: Managing Member

---

| |
|:---|
| **DEREK CASSELL** |
| **TIMOTHY HARDY** |
| **JAMES A. BERG** |
| **SHAUN CALLAHAN** |

---

*[Signature Page to Securities Purchase Agreement]*

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**SCHEDULE OF BUYERS**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| (1) | (2) | (3) | (4) | (5) | (6) |
| **Buyer** | **Address and Email** | **Number of Shares** | **Number of Warrant Shares** | **Purchase Price** | **Legal Representative's Address and Email** |
| **JCP Investment Partnership, LP** | c/o JCP Investment Management, LLC<br> 1177 West Loop South, Suite 1320<br> Houston, TX 77027<br> Attention: James C. Pappas<br> Email: <u>jcp@jcpinv.com</u> | 12957434 | 375000 | $4535101.90 | Olshan Frome Wolosky LLP<br> 1325 Avenue of the Americas<br> New York, New York 10019<br> Telephone: (212) 451-2300<br> Attention: Ryan P. Nebel, Esq. and Michael R. Neidell, Esq.<br> E-mail: <u>rnebel@olshanlaw.com</u> and <u>mneidell@olshanlaw.com</u> |
| **JCP Investment Management, LLC** | c/o JCP Investment Management, LLC<br> 1177 West Loop South, Suite 1320<br> Houston, TX 77027<br> Attention: James C. Pappas<br> Email: <u>jcp@jcpinv.com</u> | 1553281 | 0 | $543648.35 | Olshan Frome Wolosky LLP<br> 1325 Avenue of the Americas<br> New York, New York 10019<br> Telephone: (212) 451-2300<br> Attention: Ryan P. Nebel, Esq. and Michael R. Neidell, Esq.<br> E-mail: <u>rnebel@olshanlaw.com</u> and <u>mneidell@olshanlaw.com</u> |
| **CRC Founders Fund, LP** | c/o Carlson Ridge Capital, LLC<br> 1528 Wazee Street<br> Denver, CO 80202<br> Attention: Denver Smith<br> Email: <u>denver@carlsonridge.com</u> | 14510714 | 375000. | $5078749.90 | N/A |
| **Derek Cassell** | 2403 Shaker Court, Naperville, IL 60564<br> Email: <u>derek.cassell@trackgrp.com</u> | 300000.00 | 0 | $105000 | N/A |
| **Timothy Hardy** | 876 Elm ST, Sugar Grove, IL 60554<br> Email:<br> <u>tim_hardy@sbcglobal.net</u> | 60000.00 | 0 | $21000 | N/A |
| **James A. Berg** | 747 S Hillside Ave, Elmhurst, IL 60126<br> Email:<br> <u>jab747@comcast.net</u> | 50000.00 | 0 | $17500 | N/A |
| **Shaun Callahan** | 352 Sunset Ave, Aurora, IL<br> 60506<br> Email: <u>callahan.shaun@gmail.com</u> | 40000.00 | 0 | $14000 | N/A |

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**<u>EXHIBITS</u>**

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| | |
|:---|:---|
| Exhibit A | Form of Secretary's Certificate |
| Exhibit B | Form of Officer's Certificate |
| Exhibit C | Form of Warrant |
| Exhibit D | Form of Registration Rights Agreement |

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**<u>SCHEDULES</u>**

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| | |
|:---|:---|
| Schedule 3(a) | Subsidiaries |
| Schedule 3(f) | Acknowledgment Regarding Buyer's Purchase of Securities |
| Schedule 3(k) | Absence of Certain Changes |
| Schedule 3(r) | Equity Capitalization |
| Schedule 3(s) | Indebtedness and Other Contracts |
| Schedule 3(t) | Absence of Litigation |
| Schedule 3(x) | Intellectual Property Rights |

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**<u>EXHIBIT A</u>**

Form of Secretary's Certificate

**<u>TRACK GROUP, INC.</u>**

**<u>SECRETARY</u>**<u>'</u>**<u>S CERTIFICATE</u>**

The undersigned hereby certifies that he is the duly elected, qualified and acting Secretary of Track Group, Inc., a Delaware corporation (the "Company"), and that as such he is authorized to execute and deliver this certificate in the name and on behalf of the Company and in connection with the Securities Purchase Agreement, dated as of April 30, 2026, by and among the Company and the investors listed on the Schedule of Buyers attached thereto (the "Securities Purchase Agreement"), and further certifies in his official capacity, in the name and on behalf of the Company, the items set forth below. Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Securities Purchase Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Attached hereto as Exhibit A is a true, correct and complete copy of resolutions of the Board of Directors of the Company duly adopted at a meeting of the Board of Directors held on [_____], 2026. The resolutions contained in Exhibit A have not in any way been amended, modified, revoked or rescinded, have been in full force and effect since their adoption to and including the date hereof and are now in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Attached hereto as Exhibit B-1 is a true, correct and complete copy of resolutions of the Board of Directors of the Company duly adopted at a meeting of the Board of Directors held on [_____], 2026 and attached hereto as Exhibit B-2 is a true, correct and complete copy of resolutions of the stockholders of the Company duly adopted by written consent on [_____], 2026. The resolutions contained in Exhibit B-1 and B-2 have not in any way been amended, modified, revoked or rescinded, have been in full force and effect since their adoption to and including the date hereof and are now in full force and effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Attached hereto as Exhibit C is a true, correct and complete copy of the Certificate of Incorporation of the Company, together with any and all amendments thereto, and no action has been taken to further amend, modify or repeal such Certificate of Incorporation, the same being in full force and effect in the attached form as of the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Attached hereto as Exhibit D is a true, correct and complete copy of the Bylaws of the Company and any and all amendments thereto, and no action has been taken to further amend, modify or repeal such Bylaws, the same being in full force and effect in the attached form as of the date hereof.

------

IN WITNESS WHEREOF, the undersigned has hereunto set his hand as of this 30<sup>th</sup> day of April, 2026.

  <br> Name: Shaun Callahan <br> Secretary

I, Derek Cassell, Chief Executive Officer of the Company, hereby certify that Shaun Callahan is the duly elected, qualified and acting Secretary of the Company and that the signature set forth above is his true signature.

  <br> Derek Cassell <br> Chief Executive Officer

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**<u>EXHIBIT B</u>**

Form of Officer's Certificate

**TRACK GROUP, INC.**

**<u>OFFICER</u>**<u>'</u>**<u>S CERTIFICATE</u>**

The undersigned officer of Track Group, Inc., a Delaware corporation (the "Company"), hereby represents, warrants and certifies to the Buyers (as defined below), pursuant to Section 7(v) of the Agreement (as defined below), as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The representations and warranties of the Company set forth in Section 3 of the Securities Purchase Agreement, dated as of April 30, 2026 (the "Agreement"), among the Company and the investors identified on the Schedule of Buyers attached to the Agreement (the "Buyers"), are true and correct in all material respects (except for those representations and warranties that are qualified by materiality or Material Adverse Effect (as defined in the Agreement), which are accurate in all respects) as of the date hereof (except for representations and warranties that speak as of a specific date, which are true and correct as of such specified date).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The Company has performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by the Transaction Documents (as defined in the Agreement) to be performed, satisfied and complied with by the Company as of the date hereof (except for covenants, agreements and conditions that are qualified by materiality or Material Adverse Effect, which have been performed, satisfied or complied with, in all respects).

Capitalized terms used but not otherwise defined herein shall have the meaning set forth in the Agreement.

IN WITNESS WHEREOF, the undersigned has executed this certificate this 30<sup>th</sup> day of April, 2026.

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| | |
|:---|:---|
| Name: | Derek Cassell |
| Title: | Chief Executive Officer |

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------

**<u>SCHEDULES</u>**

These Disclosure Schedules are provided pursuant to Sections 3 and 4 of the Securities Purchase Agreement dated April 30, 2026 (the "Agreement") by and among Track Group, Inc., a Delaware corporation, with headquarters located at 200 E. 5th Avenue, Suite 100, Naperville, IL 60563 (the "Company"), and the investors listed on the Schedule of Buyers attached thereto (individually, a "Buyer" and collectively, the "Buyers"). Capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Agreement.

Certain information and disclosures disclosed in this Schedule as qualifications to the representations and warranties set forth in Section 3 of the Agreement have been disclosed for information purposes only and shall not be construed as an admission that such information or disclosures are required to be disclosed in this Schedule, and no reference to or disclosure of any item or other matter in any section of this Schedule shall be construed as an admission or indication that such item or other matter is material. Unless otherwise specifically provided in the relevant representation, warranty or other provision contained in the Agreement, no reference in any schedule to any agreement or document shall in and of itself be construed as an admission or indication that such agreement or document is enforceable or currently in effect. No reference to or disclosure of any item or other matter in any section of this Schedule relating to any possible or alleged breach, default or violation of any agreement or law shall be construed as an admission of liability or responsibility to any third party under any law or in any dispute, controversy, or indication that any such breach, default or violation exists or has actually occurred. Neither the specification of any item or matter in response to any representation, warranty or covenant contained in the Agreement nor the inclusion of any specific item in this Schedule is intended to imply that such item or matter, or other items or matters, are or are not in the ordinary course of business. Disclosure of any matter or item in any of this Schedule, including but not limited to those which are contained on any sub-schedules, exhibits or attachments included herein shall be deemed to have been disclosed in any other section of the Disclosure Schedules or as an additional schedule to any representations and warranties to which the applicability of such matter or item is reasonably apparent based solely on the face of such disclosure.

This Schedule has been arranged in separately titled Schedules corresponding to sections of the Agreement. Any description of any document included in this Schedule is qualified in all respects by reference to the text of such document, including all amendments, exhibits, schedules and attachments thereto. Any attachment to this Schedule forms an integral part of this Schedule and is incorporated by reference for all purposes as if set forth fully herein.

The introductory language and the headings to each section in this Schedule is inserted for convenience only and is not intended to limit the effect of the disclosures contained in this Schedule, to expand the scope of the information required to be disclosed in this Schedule or to be part of, or affect the meaning or interpretation of, this Schedule. Without limiting the foregoing, for convenience of reference, the Company has in certain instances included cross-references to other sections of this Schedule. The inclusion of such references does not mean that in those instances where a cross-reference is not included, any disclosure contained herein is not disclosed or incorporated into any other sections and subsections of this Schedule subject to the limitations set forth in the paragraphs immediately above. Some of the statements in this Schedule reference contracts and other documents, agreements, certifications and information provided to Purchasers.

## Exhibit 10.4

**Exhibit 10.4**

**REGISTRATION RIGHTS AGREEMENT**

**REGISTRATION RIGHTS AGREEMENT** (this "**Agreement**"), dated as of April 30, 2026, by and among Track Group, Inc., a Delaware corporation, with headquarters located at 200 E. 5th Avenue, Suite 100, Naperville, IL 60563 (the "**Company**"), and the investors listed on the schedule of initial investors attached hereto.

**WHEREAS**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. In connection with the Securities Purchase Agreement by and among the parties hereto of even date herewith (the "**Securities Purchase Agreement**"), the Company has agreed, upon the terms and subject to the conditions of the Securities Purchase Agreement, to issue and sell to each investor identified as a "Buyer" on the signature pages to this Registration Rights Agreement (each, a "**Buyer**" and collectively, the "**Buyers**") (i) the aggregate number of shares of the Company's common stock, par value $0.0001 per share (the "**Common Stock**"), as more specifically set forth in the Securities Purchase Agreement (which aggregate amount for all Buyers together shall be 29,471,429 shares of Common Stock and shall collectively be referred to herein as the "**Common Shares**") and (ii) warrants (the "**Warrants**") which will be exercisable to purchase shares of Common Stock (the "**Warrant Shares**") in accordance with the terms of the Warrants.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. In connection with that certain Credit Agreement dated as of April 30, 2026 (the "**Credit Agreement**"), by and among the Company, each of its affiliates party thereto, as borrowers, the financial institutions party thereto, as lenders, and Chatham Capital Management, LLC, a Delaware limited liability company (the "**Lender**"), as administrative agent and lead arranger, the Company has agreed to issue to the Lender, in its capacity as agent for Chatham Investment Fund VI A, L.P., and Chatham Investment Fund VI QP, L.P. (each such fund, together with the Lender, the "**Lender Parties**" and each, a "**Lender Party**"), a warrant (the "**Lender Warrant**") which will be exercisable to purchase shares of Common Stock (the "**Lender Warrant Shares**") in accordance with the terms of the Lender Warrant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C. In accordance with the terms of the Securities Purchase Agreement and the Credit Agreement, the Company has agreed to provide certain registration rights under the Securities Act of 1933, as amended, and the rules and regulations thereunder, or any similar successor statute (collectively, the "**1933 Act**"), and applicable state securities laws.

**NOW, THEREFORE**, in consideration of the premises and the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Company, each of the Buyers and the Lender, on its own behalf and on behalf of the other Lender Parties, hereby agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Definitions</u>.

Capitalized terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Securities Purchase Agreement. As used in this Agreement, the following terms shall have the following meanings:

(a) "**Additional Effective Date**" means the date the Additional Registration Statement is declared effective by the SEC.

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(b) "**Additional Effectiveness Deadline**" means the date which is the earlier of (x) (i) in the event that the Additional Registration Statement is not subject to a full review by the SEC, thirty (30) calendar days after the earlier of the Additional Filing Date and the Additional Filing Deadline or (ii) in the event that the Additional Registration Statement is subject to a full review by the SEC, sixty (60) calendar days after the earlier of the Additional Filing Date and the Additional Filing Deadline and (y) the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Additional Registration Statement will not be reviewed or will not be subject to further review; provided, however, that if the Additional Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Additional Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

(c) "**Additional Filing Date**" means the date on which the Additional Registration Statement is filed with the SEC.

(d) "**Additional Filing Deadline**" means if Cutback Shares are required to be included in any Additional Registration Statement, the later of (i) the date sixty (60) days after the date substantially all of the Registrable Securities registered under the immediately preceding Registration Statement are sold and (ii) the date six (6) months from the Initial Effective Date or the most recent Additional Effective Date, as applicable.

(e) "**Additional Registrable Securities**" means, (i) any Cutback Shares not previously included on a Registration Statement and (ii) any capital stock of the Company issued or issuable with respect to the Common Shares, the Warrant Shares, the Lender Warrant Shares or the Cutback Shares, as applicable, as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise.

(f) "**Additional Registration Statement**" means a registration statement or registration statements of the Company filed under the 1933 Act covering the resale of any Additional Registrable Securities.

(g) "**Additional Required Registration Amount**" means any Cutback Shares not previously included on a Registration Statement, all subject to adjustment as provided in Section 2(f).

(h) "**Business Day**" means any day other than Saturday, Sunday or any other day on which commercial banks in the City of New York are authorized or required by law to remain closed.

(i) "**Closing Date**" shall have the meaning set forth in the Securities Purchase Agreement.

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(j) "**Cutback Shares**" means any of the Initial Required Registration Amount or the Additional Required Registration Amount of Registrable Securities not included in all Registration Statements previously declared effective hereunder as a result of a limitation on the maximum number of shares of Common Stock of the Company permitted to be registered by the staff of the SEC pursuant to Rule 415. For the purpose of determining the Cutback Shares, in order to determine any applicable Required Registration Amount, unless an Investor gives written notice to the Company to the contrary with respect to the allocation of its Cutback Shares, the Registrable Securities shall be excluded on a pro rata basis among the Investors.

(k) "**Effective Date**" means the Initial Effective Date and the Additional Effective Date, as applicable.

(l) "**Effectiveness Deadline**" means the Initial Effectiveness Deadline and the Additional Effectiveness Deadline, as applicable.

(m) "**Eligible Market**" means the Principal Market, the OTC QX, The New York Stock Exchange, Inc., the NYSE American, the Nasdaq Global Select Market, the Nasdaq Global Market or the Nasdaq Capital Market.

(n) "**Filing Deadline**" means the Initial Filing Deadline and the Additional Filing Deadline, as applicable.

(o) "**Initial Effective Date**" means the date that the Initial Registration Statement has been declared effective by the SEC.

(p) "**Initial Effectiveness Deadline**" means the date which is the earlier of (x) (i) in the event that the Initial Registration Statement is not subject to a full review by the SEC, sixty (60) calendar days after the Closing Date or (ii) in the event that the Initial Registration Statement is subject to a full review by the SEC, ninety (90) calendar days after the Closing Date and (y) the fifth (5th) Business Day after the date the Company is notified (orally or in writing, whichever is earlier) by the SEC that such Initial Registration Statement will not be reviewed or will not be subject to further review; provided, however, that if the Initial Effectiveness Deadline falls on a Saturday, Sunday or other day that the SEC is closed for business, the Initial Effectiveness Deadline shall be extended to the next Business Day on which the SEC is open for business.

(q) "**Initial Filing Date**" means the date on which the Initial Registration Statement is filed with the SEC.

(r) "**Initial Filing Deadline**" means the date which is thirty (30) calendar days after the Closing Date.

(s) "**Initial Registrable Securities**" means (i) the Common Shares, (ii) the Warrant Shares issued or issuable upon exercise of the Warrants, (iii) the Lender Warrant Shares issued or issuable upon exercise of the Lender Warrant and (iv) any capital stock of the Company issued or issuable with respect to the Common Shares, the Warrant Shares, the Lender Warrant Shares, the Warrants or the Lender Warrant as a result of any stock split, stock dividend, recapitalization, exchange or similar event or otherwise.

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(t) "**Initial Registration Statement**" means a registration statement or registration statements of the Company filed under the 1933 Act covering the resale of the Initial Registrable Securities.

(u) "**Initial Required Registration Amount**" means 100% of the Common Shares, 120% of the Warrant Shares and 120% of the Lender Warrant Shares.

(v) "**Investor**" means (i) a Buyer or any transferee or assignee thereof to whom a Buyer assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and (ii) any Lender Party or any transferee or assignee thereof to whom a Lender Party assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9 and any transferee or assignee thereof to whom a transferee or assignee assigns its rights under this Agreement and who agrees to become bound by the provisions of this Agreement in accordance with Section 9.

(w) "**Person**" means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization and a government or any department or agency thereof.

(x) "**Principal Market**" means the OTC QB.

(y) "**register**," "**registered**," and "**registration**" refer to a registration effected by preparing and filing one or more Registration Statements (as defined below) in compliance with the 1933 Act and pursuant to Rule 415, and the declaration or ordering of effectiveness of such Registration Statement(s) by the SEC.

(z) "**Registrable Securities**" means the Initial Registrable Securities and the Additional Registrable Securities.

(aa) "**Registration Statement**" means the Initial Registration Statement and the Additional Registration Statement, as applicable.

(bb) "**Required Holders**" means the holders of at least a majority of the Registrable Securities and shall include (i) affiliates of JCP Investment Partnership LP ("**JCP**") so long as JCP or any of its affiliates holds any Registrable Securities and (ii) affiliates of Carlson Ridge Capital, LLC ("**Carlson Ridge**") so long as Carlson Ridge or any of its affiliates holds any Registrable Securities.

(cc) "**Required Registration Amount**" means either the Initial Required Registration Amount or the Additional Required Registration Amount, as applicable.

(dd) "**Rule 415**" means Rule 415 promulgated under the 1933 Act or any successor rule providing for offering securities on a continuous or delayed basis.

(ee) "**SEC**" means the United States Securities and Exchange Commission.

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(ff) "**Trading Day**" means any day on which the Common Stock is traded on the Principal Market, or, if the Principal Market is not the principal trading market for the Common Stock, then on the principal securities exchange or securities market on which the Common Stock is then traded.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Registration</u>.

(a) <u>Initial Mandatory Registration</u>. The Company shall prepare, and, as soon as practicable but in no event later than the Initial Filing Deadline, file with the SEC the Initial Registration Statement on Form S-1 covering the resale of all of the Initial Registrable Securities. In the event that Form S-1 is unavailable for such a registration, the Company shall use such other form as is available for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to the provisions of Section 2(e). The Initial Registration Statement prepared pursuant hereto shall register for resale at least the number of shares of Common Stock equal to the Initial Required Registration Amount, subject to adjustment as provided in Section 2(f). The Initial Registration Statement shall contain (except if otherwise directed by the Required Holders) the "<u>Plan of Distribution</u>" section in substantially the form attached hereto as <u>Exhibit B</u>. The Company shall use its best efforts to have the Initial Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the Initial Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Initial Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Initial Registration Statement.

(b) <u>Additional Mandatory Registrations</u>. The Company shall prepare, and, as soon as practicable but in no event later than the Additional Filing Deadline, file with the SEC an Additional Registration Statement on Form S-1 covering the resale of all of the Additional Registrable Securities not previously registered on an Additional Registration Statement hereunder. To the extent the staff of the SEC does not permit the Additional Required Registration Amount to be registered on an Additional Registration Statement, the Company shall file Additional Registration Statements successively trying to register on each such Additional Registration Statement the maximum number of remaining Additional Registrable Securities until the Additional Required Registration Amount has been registered with the SEC. In the event that Form S-3 is unavailable for such a registration, the Company shall use such other form as is available for such a registration on another appropriate form reasonably acceptable to the Required Holders, subject to the provisions of Section 2(e). Each Additional Registration Statement prepared pursuant hereto shall register for resale at least that number of shares of Common Stock equal to the Additional Required Registration Amount determined as of the date such Additional Registration Statement is initially filed with the SEC, subject to adjustment as provided in Section 2(f). Each Additional Registration Statement shall contain (except if otherwise directed by the Required Holders) the "<u>Plan of Distribution</u>" section in substantially the form attached hereto as <u>Exhibit B</u>. The Company shall use its best efforts to have each Additional Registration Statement declared effective by the SEC as soon as practicable, but in no event later than the Additional Effectiveness Deadline. By 9:30 a.m. New York time on the Business Day following the Additional Effective Date, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Additional Registration Statement.

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(c) <u>Allocation of Registrable Securities</u>. The initial number of Registrable Securities included in any Registration Statement and any increase or decrease in the number of Registrable Securities included therein shall be allocated pro rata among the Investors based on the number of Registrable Securities held by each Investor at the time the Registration Statement covering such initial number of Registrable Securities or increase or decrease thereof is declared effective by the SEC; provided, that for purposes of determining such pro rata allocation, the number of Registrable Securities held by each Investor shall be calculated without giving effect to any exclusion of Cutback Shares. In the event that an Investor sells or otherwise transfers any of such Investor's Registrable Securities, each transferee shall be allocated a pro rata portion of the then remaining number of Registrable Securities included in such Registration Statement for such transferor. Any shares of Common Stock included in a Registration Statement and which remain allocated to any Person which ceases to hold any Registrable Securities covered by such Registration Statement shall be allocated to the remaining Investors, pro rata based on the number of Registrable Securities then held by such Investors which are covered by such Registration Statement. In no event shall the Company include any securities other than Registrable Securities on any Registration Statement without the prior written consent of the Required Holders.

(d) <u>Legal Counsel</u>. Subject to Section 5 hereof, the Required Holders shall have the right to select one legal counsel to review and oversee any registration pursuant to this Section 2 ("**Legal Counsel**"), which shall be Olshan Frome Wolosky LLP or such other counsel as thereafter designated by the Required Holders. The Company and Legal Counsel shall reasonably cooperate with each other in performing the Company's obligations under this Agreement.

(e) <u>Ineligibility for Form S-3</u>. In the event that Form S-3 is not available for the registration of the resale of Registrable Securities hereunder the Company shall undertake to register the Registrable Securities on Form S-3 as soon as such form is available, provided that the Company shall maintain the effectiveness of the Registration Statement then in effect until such time as a Registration Statement on Form S-3 covering the Registrable Securities has been declared effective by the SEC.

(f) <u>Sufficient Number of Shares Registered</u>. In the event the number of shares available under a Registration Statement filed pursuant to Section 2(a) or Section 2(b) is insufficient to cover the Required Registration Amount of Registrable Securities required to be covered by such Registration Statement or an Investor's allocated portion of the Registrable Securities pursuant to Section 2(c), the Company shall amend the applicable Registration Statement, or file a new Registration Statement (on the short form available therefor, if applicable), or both, so as to cover at least the Required Registration Amount as of the Trading Day immediately preceding the date of the filing of such amendment or new Registration Statement, in each case, as soon as practicable, but in any event not later than fifteen (15) days after the necessity therefor arises. The Company shall use its best efforts to cause such amendment and/or new Registration Statement to become effective as soon as practicable following the filing thereof. For purposes of the foregoing provision, the number of shares available under a Registration Statement shall be deemed "insufficient to cover all of the Registrable Securities" if at any time the number of shares of Common Stock available for resale under the Registration Statement is less than the Required Registration Amount. The calculation set forth in the foregoing sentence shall be made based on the number of shares of Common Stock then issuable upon exercise in full of the Warrants and the Lender Warrant, in each case giving effect to all adjustments to the number of Warrant Shares or Lender Warrant Shares and to the Exercise Price (as such terms are defined in the Warrants or the Lender Warrant, as applicable) then in effect.

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(g) <u>Effect of Failure to File and Obtain and Maintain Effectiveness of Registration Statement</u>. If (i) the Initial Registration Statement when declared effective fails to register the Initial Required Registration Amount of Initial Registrable Securities (a "**Registration Failure**"), (ii) a Registration Statement covering all of the Registrable Securities required to be covered thereby and required to be filed by the Company pursuant to this Agreement is (A) not filed with the SEC on or before the applicable Filing Deadline (a "**Filing Failure**") or (B) not declared effective by the SEC on or before the applicable Effectiveness Deadline, (an "**Effectiveness Failure**") or (iii) on any day after the applicable Effective Date, sales of all of the Registrable Securities required to be included on such Registration Statement cannot be made (other than during an Allowable Grace Period (as defined in Section 3(r)) pursuant to such Registration Statement or otherwise (including, without limitation, because of the suspension of trading or any other limitation imposed by an Eligible Market, a failure to keep such Registration Statement effective, a failure to disclose such information as is necessary for sales to be made pursuant to such Registration Statement, a failure to register a sufficient number of shares of Common Stock or a failure to maintain the listing of the Common Stock) (a "**Maintenance Failure**") then, as partial relief for the damages to any holder by reason of any such delay in or reduction of its ability to sell the underlying shares of Common Stock (which remedy shall not be exclusive of any other remedies available at law or in equity, including, without limitation, specific performance or the additional obligation of the Company to register any Cutback Shares), the Company shall pay to each holder of Registrable Securities relating to such Registration Statement an amount in cash equal to one and one-half percent (1.5%) of (x) in the case of a Buyer, the aggregate Purchase Price (as such term is defined in the Securities Purchase Agreement) of such Investor's Registrable Securities, and (y) in the case of the Lender Parties, the aggregate fair market value of the Lender Warrant Shares underlying the Lender Warrant (calculated based on the closing price of the Common Stock as reported by Bloomberg on the Trading Day immediately preceding the applicable event giving rise to such Registration Delay Payment (as defined below), multiplied by the number of such Lender Warrant Shares), in each case to the extent such Investor's Registrable Securities are not included in a Registration Statement, on each of the following dates: (i) the day of a Registration Failure, (ii) the day of a Filing Failure; (iii) the day of an Effectiveness Failure; (iv) the initial day of a Maintenance Failure; (v) on the thirtieth day after the date of a Registration Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until such Registration Failure is cured; (vi) on the thirtieth day after the date of a Filing Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until such Filing Failure is cured; (vii) on the thirtieth day after the date of an Effectiveness Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until such Effectiveness Failure is cured; and (viii) on the thirtieth day after the initial date of a Maintenance Failure and every thirtieth day thereafter (pro rated for periods totaling less than thirty days) until such Maintenance Failure is cured. The payments to which a holder shall be entitled pursuant to this Section 2(g) are referred to herein as "**Registration Delay Payments**." Registration Delay Payments shall be paid on the earlier of (I) the dates set forth above and (II) the third Business Day after the event or failure giving rise to the Registration Delay Payments is cured. In the event the Company fails to make Registration Delay Payments in a timely manner, such Registration Delay Payments shall bear interest at the rate of one and one-half percent (1.5%) per month (prorated for partial months) until paid in full.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Related Obligations</u>.

At such time as the Company is obligated to file a Registration Statement with the SEC pursuant to Section 2(a), 2(b), 2(e) or 2(f), the Company will use its best efforts to effect the registration of the Registrable Securities in accordance with the intended method of disposition thereof and, pursuant thereto, the Company shall have the following obligations:

(a) The Company shall promptly prepare and file with the SEC a Registration Statement with respect to the Registrable Securities and use its best efforts to cause such Registration Statement relating to the Registrable Securities to become effective as soon as practicable after such filing (but in no event later than the Effectiveness Deadline). The Company shall keep each Registration Statement effective pursuant to Rule 415 at all times until the earlier of (i) the date as of which the Investors may sell all of the Registrable Securities covered by such Registration Statement without restriction or limitation pursuant to Rule 144 and without the requirement to be in compliance with Rule 144(c)(1) (or any successor thereto) promulgated under the 1933 Act or (ii) the date on which the Investors shall have sold all of the Registrable Securities covered by such Registration Statement (the "**Registration Period**"). The Company shall ensure that each Registration Statement (including any amendments or supplements thereto and prospectuses contained therein) shall not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein, or necessary to make the statements therein (in the case of prospectuses, in the light of the circumstances in which they were made) not misleading. The term "best efforts" shall mean, among other things, that the Company shall submit to the SEC, within two (2) Business Days after the later of the date that (i) the Company learns that no review of a particular Registration Statement will be made by the staff of the SEC or that the staff has no further comments on a particular Registration Statement, as the case may be, and (ii) the approval of Legal Counsel pursuant to Section 3(c) (which approval is immediately sought), a request for acceleration of effectiveness of such Registration Statement to a time and date not later than two (2) Business Days after the submission of such request. The Company shall respond in writing to comments made by the SEC in respect of a Registration Statement as soon as practicable, but in no event later than fifteen (15) days after the receipt of comments by or notice from the SEC that an amendment is required in order for a Registration Statement to be declared effective.

(b) The Company shall prepare and file with the SEC such amendments (including post-effective amendments) and supplements to a Registration Statement and the prospectus used in connection with such Registration Statement, which prospectus is to be filed pursuant to Rule 424 promulgated under the 1933 Act, as may be necessary to keep such Registration Statement effective at all times during the Registration Period, and, during such period, comply with the provisions of the 1933 Act with respect to the disposition of all Registrable Securities of the Company covered by such Registration Statement until such time as all of such Registrable Securities shall have been disposed of in accordance with the intended methods of disposition by the seller or sellers thereof as set forth in such Registration Statement. In the case of amendments and supplements to a Registration Statement which are required to be filed pursuant to this Agreement (including pursuant to this Section 3(b)) by reason of the Company filing a report on Form 10-K, Form 10-Q, Form 8-K or any analogous report under the Securities Exchange Act of 1934, as amended (the "**1934 Act**"), the Company shall have incorporated such report by reference into such Registration Statement, if applicable, or shall file such amendments or supplements with the SEC on the same day on which the 1934 Act report is filed which created the requirement for the Company to amend or supplement such Registration Statement.

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(c) The Company shall (A) permit Legal Counsel to review and comment upon (i) a Registration Statement at least two (2) Business Days prior to its filing with the SEC and (ii) all amendments and supplements to all Registration Statements (except for Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K, and any similar or successor reports) within a reasonable number of days prior to their filing with the SEC, and (B) not file any Registration Statement or amendment or supplement thereto in a form to which Legal Counsel reasonably objects and which will not cause the Company to incur damages hereunder unless such damages are waived by the Required Holders. The Company shall not submit a request for acceleration of the effectiveness of a Registration Statement or any amendment or supplement thereto without the prior approval of Legal Counsel, which consent shall not be unreasonably withheld, conditioned or delayed; *provided*, *however*, if the Company submits such request to Legal Counsel and Legal Counsel does not respond prior to the date on which the Company would incur damages or liabilities hereunder, the Company may submit such request or filing without such approval, unless such damages are waived by the Required Holders. The Company shall furnish to Legal Counsel, without charge, (i) copies of any correspondence from the SEC or the staff of the SEC to the Company or its representatives relating to any Registration Statement, (ii) promptly after the same is prepared and filed with the SEC, one copy of any Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor, and all exhibits and (iii) upon the effectiveness of any Registration Statement, one copy of the prospectus included in such Registration Statement and all amendments and supplements thereto. The Company shall reasonably cooperate with Legal Counsel in performing the Company's obligations pursuant to this Section 3.

(d) Upon request, the Company shall furnish to each Investor whose Registrable Securities are included in any Registration Statement, without charge, (i) promptly after the same is prepared and filed with the SEC, at least one copy of such Registration Statement and any amendment(s) thereto, including financial statements and schedules, all documents incorporated therein by reference, if requested by an Investor, all exhibits and each preliminary prospectus, (ii) upon the effectiveness of any Registration Statement, ten (10) copies of the prospectus included in such Registration Statement and all amendments and supplements thereto (or such other number of copies as such Investor may reasonably request) and (iii) such other documents, including copies of any preliminary or final prospectus, as such Investor may reasonably request from time to time in order to facilitate the disposition of the Registrable Securities owned by such Investor; *provided*, *however*, that, for purposes of this Agreement, the Company's submission of such documents with the SEC's Electronic Data Gathering, Analysis and Retrieval system shall be considered delivery to Investors of all documents required to be delivered herein.

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(e) The Company shall use its best efforts to (i) register and qualify, unless an exemption from registration and qualification applies, the resale by Investors of the Registrable Securities covered by a Registration Statement under such other securities or "blue sky" laws of all applicable jurisdictions in the United States, (ii) prepare and file in those jurisdictions such amendments (including post-effective amendments) and supplements to such registrations and qualifications as may be reasonably necessary to maintain the effectiveness thereof during the Registration Period, (iii) take such other actions as may be reasonably necessary to maintain such registrations and qualifications in effect at all times during the Registration Period, and (iv) take all other actions reasonably necessary or advisable to qualify the Registrable Securities for sale in such jurisdictions; provided, however, that the Company shall not be required in connection therewith or as a condition thereto to (x) qualify to do business in any jurisdiction where it would not otherwise be required to qualify but for this Section 3(e), (y) subject itself to general taxation in any such jurisdiction, or (z) file a general consent to service of process in any such jurisdiction. The Company shall promptly notify Legal Counsel and each Investor who holds Registrable Securities of the receipt by the Company of any notification with respect to the suspension of the registration or qualification of any of the Registrable Securities for sale under the securities or "blue sky" laws of any jurisdiction in the United States or its receipt of actual notice of the initiation or threatening of any proceeding for such purpose.

(f) The Company shall notify Legal Counsel and each Investor in writing of the happening of any event, as promptly as reasonably practicable after becoming aware of such event, as a result of which the prospectus included in a Registration Statement, as then in effect, includes an untrue statement of a material fact or omission to state a material fact required to be stated therein or necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading (provided that in no event shall such notice contain any material, nonpublic information), and, subject to Section 3(r), promptly prepare a supplement or amendment to such Registration Statement to correct such untrue statement or omission, and, upon request, deliver ten (10) copies of such supplement or amendment to Legal Counsel and each Investor (or such other number of copies as Legal Counsel or such Investor may reasonably request). The Company shall also promptly notify Legal Counsel and each Investor in writing (i) when a prospectus or any prospectus supplement or post-effective amendment has been filed, and when a Registration Statement or any post-effective amendment has become effective (notification of such effectiveness shall be delivered to Legal Counsel and each Investor by email on the same day of such effectiveness and by overnight mail), (ii) of any request by the SEC for amendments or supplements to a Registration Statement or related prospectus or related information, and (iii) of the Company's reasonable determination that a post-effective amendment to a Registration Statement would be appropriate. By 9:30 a.m. New York City time on the date following the date any post-effective amendment has become effective, the Company shall file with the SEC in accordance with Rule 424 under the 1933 Act the final prospectus to be used in connection with sales pursuant to such Registration Statement.

(g) The Company shall use its best efforts to prevent the issuance of any stop order or other suspension of effectiveness of a Registration Statement, or the suspension of the qualification of any of the Registrable Securities for sale in any jurisdiction and, if such an order or suspension is issued, to obtain the withdrawal of such order or suspension at the earliest possible moment and to notify Legal Counsel and each Investor who holds Registrable Securities being sold of the issuance of such order and the resolution thereof or its receipt of actual notice of the initiation or threat of any proceeding for such purpose.

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(h) If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or an Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, at the reasonable request of such Investor, the Company shall furnish to such Investor, on the date of the effectiveness of the Registration Statement and thereafter from time to time on such dates as an Investor may reasonably request (i) a letter, dated such date, from the Company's independent certified public accountants in form and substance as is customarily given by independent certified public accountants to underwriters in an underwritten public offering, addressed to the Investors, and (ii) an opinion, dated as of such date, of counsel representing the Company for purposes of such Registration Statement, in form, scope and substance as is customarily given in an underwritten public offering, addressed to the Investors.

(i) If any Investor is required under applicable securities laws to be described in the Registration Statement as an underwriter or an Investor believes that it could reasonably be deemed to be an underwriter of Registrable Securities, the Company shall make available for inspection by (i) such Investor, (ii) Legal Counsel and (iii) one firm of accountants or other agents retained by the Investors (collectively, the "**Inspectors**"), all pertinent financial and other records, and pertinent corporate documents and properties of the Company (collectively, the "**Records**"), as shall be reasonably deemed necessary by each Inspector, and cause the Company's officers, directors and employees to supply all information which any Inspector may reasonably request; provided, however, that each Inspector shall agree to hold in strict confidence and shall not make any disclosure (except to an Investor) or use of any Record or other information which the Company determines in good faith to be confidential, and of which determination the Inspectors are so notified or as otherwise marked on such Record, unless (a) the disclosure of such Records is necessary to avoid or correct a misstatement or omission in any Registration Statement or is otherwise required under the 1933 Act, (b) the release of such Records is ordered pursuant to a final, non-appealable subpoena or order from a court or government body of competent jurisdiction, or (c) the information in such Records has been made generally available to the public other than by disclosure in violation of this Agreement. Each Investor agrees that it shall, upon learning that disclosure of such Records is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt notice to the Company and allow the Company, at its expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, the Records deemed confidential. Nothing herein (or in any other confidentiality agreement between the Company and any Investor) shall be deemed to limit the Investors' ability to sell Registrable Securities in a manner which is otherwise consistent with applicable laws and regulations.

(j) The Company shall hold in confidence and not make any disclosure of information concerning an Investor provided to the Company unless (i) disclosure of such information is necessary to comply with federal or state securities laws, (ii) the disclosure of such information is necessary to avoid or correct a misstatement or omission in any Registration Statement, (iii) the release of such information is ordered pursuant to a subpoena or other final, non-appealable order from a court or governmental body of competent jurisdiction, or (iv) such information has been made generally available to the public other than by disclosure in violation of this Agreement or any other agreement. The Company agrees that it shall, upon learning that disclosure of such information concerning an Investor is sought in or by a court or governmental body of competent jurisdiction or through other means, give prompt written notice to such Investor and allow such Investor, at the Investor's expense, to undertake appropriate action to prevent disclosure of, or to obtain a protective order for, such information.

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(k) The Company shall use its best efforts either to (i) cause all of the Registrable Securities covered by a Registration Statement to be listed on each securities exchange on which securities of the same class or series issued by the Company are then listed, if any, if the listing of such Registrable Securities is then permitted under the rules of such exchange or (ii) secure the inclusion for quotation of all of the Registrable Securities on the Principal Market or (iii) if, despite the Company's best efforts, the Company is unsuccessful in satisfying the preceding clauses (i) and (ii), to secure the inclusion for quotation on another Eligible Market for such Registrable Securities and, without limiting the generality of the foregoing, to use its best efforts to arrange for at least two market makers to register with the Financial Industry Regulatory Authority, Inc. ("**FINRA**") as such with respect to such Registrable Securities. The Company shall pay all fees and expenses in connection with satisfying its obligation under this Section 3(k).

(l) The Company shall cooperate with the Investors who hold Registrable Securities being offered and, to the extent applicable, facilitate the timely preparation and delivery of certificates (not bearing any restrictive legend) representing the Registrable Securities to be offered pursuant to a Registration Statement and enable such certificates to be in such denominations or amounts, as the case may be, as the Investors may reasonably request and registered in such names as the Investors may request.

(m) If requested by an Investor, the Company shall as soon as practicable (i) incorporate in a prospectus supplement or post-effective amendment such information as an Investor reasonably requests to be included therein relating to the sale and distribution of Registrable Securities, including, without limitation, information with respect to the number of Registrable Securities being offered or sold, the purchase price being paid therefor and any other terms of the offering of the Registrable Securities to be sold in such offering; (ii) make all required filings of such prospectus supplement or post-effective amendment after being notified of the matters to be incorporated in such prospectus supplement or post-effective amendment; and (iii) supplement or make amendments to any Registration Statement if reasonably requested by an Investor holding any Registrable Securities.

(n) The Company shall use its best efforts to cause the Registrable Securities covered by a Registration Statement to be registered with or approved by such other governmental agencies or authorities as may be necessary to consummate the disposition of such Registrable Securities.

(o) The Company shall make generally available to its security holders as soon as practical, but not later than ninety (90) days after the close of the period covered thereby, an earnings statement (in form complying with, and in the manner provided by, the provisions of Rule 158 under the 1933 Act) covering a twelve-month period beginning not later than the first day of the Company's fiscal quarter next following the applicable Effective Date of a Registration Statement.

(p) The Company shall otherwise use its best efforts to comply with all applicable rules and regulations of the SEC in connection with any registration hereunder.

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(q) Within two (2) Business Days after a Registration Statement which covers Registrable Securities is ordered effective by the SEC, the Company shall deliver, and shall cause legal counsel for the Company to deliver, to the transfer agent for such Registrable Securities (with copies to the Investors whose Registrable Securities are included in such Registration Statement) confirmation that such Registration Statement has been declared effective by the SEC in the form attached hereto as <u>Exhibit A</u>.

(r) Notwithstanding anything to the contrary herein, at any time after the Effective Date, the Company may delay the disclosure of material, non-public information concerning the Company the disclosure of which at the time is not, in the good faith opinion of the Board of Directors of the Company and its counsel, in the best interest of the Company and, in the opinion of counsel to the Company, otherwise required (a "**Grace Period**"); provided, that the Company shall promptly (i) notify the Investors in writing of the existence of material, non-public information giving rise to a Grace Period (provided that in each notice the Company will not disclose the content of such material, non-public information to the Investors) and the date on which the Grace Period will begin, and (ii) notify the Investors in writing of the date on which the Grace Period ends; and, provided further, that no Grace Period shall exceed fifteen (15) consecutive Trading Days and during any three hundred sixty five (365) day period such Grace Periods shall not exceed an aggregate of thirty (30) Trading Days and the first day of any Grace Period must be at least five (5) Trading Days after the last day of any prior Grace Period (each, an "**Allowable Grace Period**"). For purposes of determining the length of a Grace Period above, the Grace Period shall begin on and include the date the Investors receive the notice referred to in clause (i) and shall end on and include the later of the date the Investors receive the notice referred to in clause (ii) and the date referred to in such notice. The provisions of Section 3(g) hereof shall not be applicable during the period of any Allowable Grace Period. Upon expiration of the Grace Period, the Company shall again be bound by the first sentence of Section 3(f) with respect to the information giving rise thereto unless such material, non-public information is no longer applicable. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement or the Credit Agreement, as applicable, in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale, prior to the Investor's receipt of the notice of a Grace Period and for which the Investor has not yet settled.

(s) Neither the Company nor any Subsidiary or affiliate thereof shall identify any Investor as an underwriter in any public disclosure or filing with the SEC, the Principal Market or any Eligible Market and any Buyer or any Lender Party being deemed an underwriter by the SEC shall not relieve the Company of any obligations it has under this Agreement or any other Transaction Document (as defined in the Securities Purchase Agreement) or Loan Document (as defined in the Credit Agreement); <u>provided</u>, <u>however</u>, that the foregoing shall not prohibit the Company from including the disclosure found in the "Plan of Distribution" section attached hereto as <u>Exhibit B</u> in the Registration Statement.

(t) Neither the Company nor any of its Subsidiaries has entered, as of the date hereof, nor shall the Company or any of its Subsidiaries, on or after the date of this Agreement, enter into any agreement with respect to its securities, that would have the effect of impairing the rights granted to the Buyers or the Lender Parties in this Agreement or otherwise conflicts with the provisions hereof.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Obligations of the Investors</u>.

(a) At least five (5) Business Days prior to the first anticipated Filing Date of a Registration Statement, the Company shall notify each Investor in writing of the information the Company requires from each such Investor if such Investor elects to have any of such Investor's Registrable Securities included in such Registration Statement. It shall be a condition precedent to the obligations of the Company to complete any registration pursuant to this Agreement with respect to the Registrable Securities of a particular Investor that such Investor shall furnish to the Company such information regarding itself, the Registrable Securities held by it and the intended method of disposition of the Registrable Securities held by it as shall be reasonably required to effect and maintain the effectiveness of the registration of such Registrable Securities and shall execute such documents in connection with such registration as the Company may reasonably request.

(b) Each Investor, by such Investor's acceptance of the Registrable Securities, agrees to cooperate with the Company as reasonably requested by the Company in connection with the preparation and filing of any Registration Statement hereunder, unless such Investor has notified the Company in writing of such Investor's election to exclude all of such Investor's Registrable Securities from such Registration Statement.

(c) Each Investor agrees that, upon receipt of any notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of Section 3(f), such Investor will immediately discontinue disposition of Registrable Securities pursuant to any Registration Statement(s) covering such Registrable Securities until such Investor's receipt of copies of the supplemented or amended prospectus as contemplated by Section 3(g) or the first sentence of Section 3(f) or receipt of notice that no supplement or amendment is required. Notwithstanding anything to the contrary, the Company shall cause its transfer agent to deliver unlegended shares of Common Stock to a transferee of an Investor in accordance with the terms of the Securities Purchase Agreement or the Credit Agreement, as applicable, in connection with any sale of Registrable Securities with respect to which an Investor has entered into a contract for sale prior to the Investor's receipt of a notice from the Company of the happening of any event of the kind described in Section 3(g) or the first sentence of Section 3(f) and for which the Investor has not yet settled.

(d) Each Investor covenants and agrees that it will comply with the prospectus delivery requirements of the 1933 Act as applicable to it or an exemption therefrom in connection with sales of Registrable Securities pursuant to the Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Expenses of Registration</u>.

All reasonable expenses, other than underwriting discounts and commissions, incurred in connection with registrations, filings or qualifications pursuant to Sections 2 and 3, including, without limitation, all registration, listing and qualifications fees, printers and accounting fees, and fees and disbursements of counsel for the Company shall be paid by the Company. The Company shall also reimburse the Investors for the fees and disbursements of Legal Counsel in connection with registration, filing or qualification pursuant to Sections 2 and 3 of this Agreement which amount shall be limited to $15,000 for each such registration, filing or qualification.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Indemnification</u>.

In the event any Registrable Securities are included in a Registration Statement under this Agreement:

(a) To the fullest extent permitted by law, the Company will, and hereby does, indemnify, hold harmless and defend each Investor, the directors, officers, partners, members, employees, agents, representatives of, and each Person, if any, who controls any Investor within the meaning of the 1933 Act or the 1934 Act (each, an "**Indemnified Person**"), against any losses, claims, damages, liabilities, judgments, fines, penalties, charges, costs, reasonable attorneys' fees, amounts paid in settlement or expenses, joint or several (collectively, "**Claims**"), incurred in investigating, preparing or defending any action, claim, suit, inquiry, proceeding, investigation or appeal taken from the foregoing by or before any court or governmental, administrative or other regulatory agency, body or the SEC, whether pending or threatened, whether or not an indemnified party is or may be a party thereto ("**Indemnified Damages**"), to which any of them may become subject insofar as such Claims (or actions or proceedings, whether commenced or threatened, in respect thereof) arise out of or are based upon: (i) any untrue statement or alleged untrue statement of a material fact in a Registration Statement or any post-effective amendment thereto or in any filing made in connection with the qualification of the offering under the securities or other "blue sky" laws of any jurisdiction in which Registrable Securities are offered ("**Blue Sky Filing**"), or the omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, (ii) any untrue statement or alleged untrue statement of a material fact contained in any preliminary prospectus if used prior to the effective date of such Registration Statement, or contained in the final prospectus (as amended or supplemented, if the Company files any amendment thereof or supplement thereto with the SEC) or the omission or alleged omission to state therein any material fact necessary to make the statements made therein, in light of the circumstances under which the statements therein were made, not misleading, (iii) any violation or alleged violation by the Company of the 1933 Act, the 1934 Act, any other law, including, without limitation, any state securities law, or any rule or regulation thereunder relating to the offer or sale of the Registrable Securities pursuant to a Registration Statement or (iv) any violation of this Agreement (the matters in the foregoing clauses (i) through (iv) being, collectively, "**Violations**"). Subject to Section 6(c), the Company shall reimburse the Indemnified Persons, promptly as such expenses are incurred and are due and payable (upon the presentation of invoices or other reasonably requested documentation), for any reasonable legal fees or other reasonable expenses incurred by them in connection with investigating or defending any such Claim. Notwithstanding anything to the contrary contained herein, the indemnification agreement contained in this Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising out of or based upon a Violation which occurs in reliance upon and in conformity with information furnished in writing to the Company by such Indemnified Person for such Indemnified Person expressly for use in connection with the preparation of the Registration Statement or any such amendment thereof or supplement thereto, if such prospectus was timely made available by the Company pursuant to Section 3(d); and (ii) shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of the Company, which consent shall not be unreasonably withheld or delayed. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of the Indemnified Person and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

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(b) In connection with any Registration Statement in which an Investor is participating, each such Investor agrees to severally and not jointly indemnify, hold harmless and defend, to the same extent and in the same manner as is set forth in Section 6(a), the Company, each of its directors, each of its officers who signs the Registration Statement and each Person, if any, who controls the Company within the meaning of the 1933 Act or the 1934 Act (each, an "**Indemnified Party**"), against any Claim or Indemnified Damages to which any of them may become subject, under the 1933 Act, the 1934 Act or otherwise, insofar as such Claim or Indemnified Damages arise out of or are based upon any Violation, in each case to the extent, and only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished to the Company by such Investor expressly for use in connection with such Registration Statement; and, subject to Section 6(c), such Investor shall reimburse the Indemnified Party for any legal or other expenses reasonably incurred by an Indemnified Party in connection with investigating or defending any such Claim; provided, however, that the indemnity agreement contained in this Section 6(b) and the agreement with respect to contribution contained in Section 7 shall not apply to amounts paid in settlement of any Claim if such settlement is effected without the prior written consent of such Investor, which consent shall not be unreasonably withheld or delayed; provided, further, however, that the Investor shall be liable under this Section 6(b) for only that amount of a Claim or Indemnified Damages as does not exceed the net proceeds to such Investor as a result of the sale of Registrable Securities pursuant to such Registration Statement. Such indemnity shall remain in full force and effect regardless of any investigation made by or on behalf of such Indemnified Party and shall survive the transfer of the Registrable Securities by the Investors pursuant to Section 9.

(c) Promptly after receipt by an Indemnified Person or Indemnified Party under this Section 6 of notice of the commencement of any action or proceeding (including any governmental action or proceeding) involving a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in respect thereof is to be made against any indemnifying party under this Section 6, deliver to the indemnifying party a written notice of the commencement thereof, and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party so desires, jointly with any other indemnifying party similarly noticed, to assume control of the defense thereof with counsel mutually satisfactory to the indemnifying party and the Indemnified Person or the Indemnified Party, as the case may be; provided, however, that an Indemnified Person or Indemnified Party shall have the right to retain its own counsel with the fees and expenses of not more than one counsel for all such Indemnified Person or Indemnified Party to be paid by the indemnifying party, if, in the reasonable opinion of counsel retained by the Indemnified Person or Indemnified Party, as applicable, the representation by such counsel of the Indemnified Person or Indemnified Party, as the case may be, and the indemnifying party would be inappropriate due to actual or potential differing interests between such Indemnified Person or Indemnified Party and any other party represented by such counsel in such proceeding. In the case of an Indemnified Person, legal counsel referred to in the immediately preceding sentence shall be selected by the Investors holding at least a majority in interest of the Registrable Securities included in the Registration Statement to which the Claim relates. The Indemnified Party or Indemnified Person shall reasonably cooperate with the indemnifying party in connection with any negotiation or defense of any such action or Claim by the indemnifying party and shall furnish to the indemnifying party all information reasonably available to the Indemnified Party or Indemnified Person which relates to such action or Claim. The indemnifying party shall keep the Indemnified Party or Indemnified Person fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto. No indemnifying party shall be liable for any settlement of any action, claim or proceeding effected without its prior written consent, provided, however, that the indemnifying party shall not unreasonably withhold, delay or condition its consent. No indemnifying party shall, without the prior written consent of the Indemnified Party or Indemnified Person, consent to entry of any judgment or enter into any settlement or other compromise which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party or Indemnified Person of a release from all liability in respect to such Claim or litigation and such settlement shall not include any admission as to fault on the part of the Indemnified Party. Following indemnification as provided for hereunder, the indemnifying party shall be subrogated to all rights of the Indemnified Party or Indemnified Person with respect to all third parties, firms or corporations relating to the matter for which indemnification has been made. The failure to deliver written notice to the indemnifying party within a reasonable time of the commencement of any such action shall not relieve such indemnifying party of any liability to the Indemnified Person or Indemnified Party under this Section 6, except to the extent that the indemnifying party is prejudiced in its ability to defend such action.

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(d) The indemnification required by this Section 6 shall be made by periodic payments of the amount thereof during the course of the investigation or defense, as and when bills are received or Indemnified Damages are incurred.

(e) The indemnity agreements contained herein shall be in addition to (i) any cause of action or similar right of the Indemnified Party or Indemnified Person against the indemnifying party or others, and (ii) any liabilities the indemnifying party may be subject to pursuant to the law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Contribution</u>.

To the extent any indemnification by an indemnifying party is prohibited or limited by law, the indemnifying party agrees to make the maximum contribution with respect to any amounts for which it would otherwise be liable under Section 6 to the fullest extent permitted by law; provided, however, that: (i) no Person involved in the sale of Registrable Securities which Person is guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) in connection with such sale shall be entitled to contribution from any Person involved in such sale of Registrable Securities who was not guilty of fraudulent misrepresentation; and (ii) contribution by any seller of Registrable Securities shall be limited in amount to the amount of net proceeds received by such seller from the sale of such Registrable Securities pursuant to such Registration Statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Reports Under the 1934 Act</u>.

With a view to making available to the Investors the benefits of Rule 144 promulgated under the 1933 Act or any other similar rule or regulation of the SEC that may at any time permit the Investors to sell securities of the Company to the public without registration ("**Rule 144**"), the Company agrees to:

(a) make and keep public information available, as those terms are understood and defined in Rule 144;

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(b) file with the SEC in a timely manner all reports and other documents required of the Company under the 1933 Act and the 1934 Act so long as the Company remains subject to such requirements and the filing of such reports and other documents is required for the applicable provisions of Rule 144; and

(c) furnish to each Investor so long as such Investor owns Registrable Securities, promptly upon request, (i) a written statement by the Company, if true, that it has complied with the reporting requirements of Rule 144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the Company and such other reports and documents so filed by the Company, and (iii) such other information as may be reasonably requested to permit the Investors to sell such securities pursuant to Rule 144 without registration.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Assignment of Registration Rights</u>.

The rights under this Agreement shall be automatically assignable by the Investors to any transferee of all or any portion of such Investor's Registrable Securities if: (i) the Investor agrees in writing with the transferee or assignee to assign such rights, and a copy of such agreement is furnished to the Company within a reasonable time after such assignment; (ii) the Company is, within a reasonable time after such transfer or assignment, furnished with written notice of (a) the name and address of such transferee or assignee, and (b) the securities with respect to which such registration rights are being transferred or assigned; (iii) immediately following such transfer or assignment the further disposition of such securities by the transferee or assignee is restricted under the 1933 Act or applicable state securities laws; (iv) at or before the time the Company receives the written notice contemplated by clause (ii) of this sentence the transferee or assignee agrees in writing with the Company to be bound by all of the provisions contained herein; and (v) such transfer shall have been made in accordance with the applicable requirements of the Securities Purchase Agreement or the Credit Agreement, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Amendment of Registration Rights</u>.

Provisions of this Agreement may be amended and the observance thereof may be waived (either generally or in a particular instance and either retroactively or prospectively), only with the written consent of the Company and the Required Holders; provided that any such amendment or waiver that complies with the foregoing but that disproportionately, materially and adversely affects the rights and obligations of any Investor relative to the comparable rights and obligations of the other Investors shall require the prior written consent of such adversely affected Investor. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon each Investor and the Company. No such amendment shall be effective to the extent that it applies to less than all of the holders of the Registrable Securities. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of this Agreement unless the same consideration (other than the reimbursement of legal fees) also is offered to all of the parties to this Agreement.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Miscellaneous</u>.

(a) If the Company receives conflicting instructions, notices or elections from two or more Persons with respect to the same Registrable Securities, the Company shall act upon the basis of instructions, notice or election received from such record owner of such Registrable Securities.

(b) Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon delivery, when sent by electronic mail (provided that the sending party does not receive an automated rejection notice) or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case properly addressed to the party to receive the same. The addresses and email addresses for such communications shall be:

If to the Company:

Track Group, Inc.<br> 200 E. 5th Avenue Suite 100<br> Naperville, Illinois 60563<br> Telephone: (877) 260-2010<br> Attention:<br> E-mail:

With a copy (for informational purposes only) to:

Disclosure Law Group, a Professional Corporation

600 West Broadway, Suite 700

San Diego, CA 92101<br> Telephone: (619) 272-7064<br> Attention: Jack Kennedy<br> E-mail: jkennedy@disclosurelawgroup.com

If to the Transfer Agent:

Equiniti Trust Company, LLC<br> 48 Wall Street, Floor 23

New York, NY 10005<br> Telephone:<br> Attention:<br> E-mail:

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If to Legal Counsel:

Olshan Frome Wolosky LLP<br> 1325 Avenue of the Americas<br> New York, New York 10019<br> Telephone: (212) 451-2300<br> Attention: Ryan P. Nebel, Esq. and Michael R. Neidell, Esq.<br> E-mail: rnebel@olshanlaw.com and mneidell@olshanlaw.com

If to a Buyer or any Lender Party, to its address and/or email address set forth on the schedule of initial investors attached hereto, with copies to such Buyer's or Lender Party's representatives as set forth on the schedule of initial investors, or to such other address and/or email address to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) electronically generated by the sender's email containing the time, date and recipient email address or (C) provided by a courier or overnight courier service shall be rebuttable evidence of personal service, receipt from a nationally recognized overnight delivery service in accordance with clause (i), (ii) or (iii) above, respectively.

(c) Failure of any party to exercise any right or remedy under this Agreement or otherwise, or delay by a party in exercising such right or remedy, shall not operate as a waiver thereof.

(d) All questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this Agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. **EACH PARTY HEREBY IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY**.

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(e) If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

(f) This Agreement, the other Transaction Documents (as defined in the Securities Purchase Agreement), the Loan Documents (as defined in the Credit Agreement) and the instruments referenced herein and therein constitute the entire agreement among the parties hereto with respect to the subject matter hereof and thereof. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein and therein. This Agreement, the other Transaction Documents, the Loan Documents and the instruments referenced herein and therein supersede all prior agreements and understandings among the parties hereto with respect to the subject matter hereof and thereof.

(g) Subject to the requirements of Section 9, this Agreement shall inure to the benefit of and be binding upon the permitted successors and assigns of each of the parties hereto.

(h) The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning hereof.

(i) This Agreement may be executed in identical counterparts, each of which shall be deemed an original but all of which shall constitute one and the same agreement. This Agreement, once executed by a party, may be delivered to the other party hereto by .pdf or facsimile transmission of a copy of this Agreement bearing the signature of the party so delivering this Agreement.

(j) Each party shall do and perform, or cause to be done and performed, all such further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as any other party may reasonably request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

(k) All consents and other determinations required to be made by the Investors pursuant to this Agreement shall be made, unless otherwise specified in this Agreement, by the Required Holders.

(l) The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent and no rules of strict construction will be applied against any party.

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(m) This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

(n) The obligations of each Investor hereunder are several and not joint with the obligations of any other Investor, and no provision of this Agreement is intended to confer any obligations on any Investor vis-à-vis any other Investor. Nothing contained herein, and no action taken by any Investor pursuant hereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated herein.

\* \* \* \* \* \*

**[Signature Page Follows]**

------

**IN WITNESS WHEREOF**, each Buyer, the Lender and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed as of the date first written above.

---

| |
|:---|
| **COMPANY:** |
| **TRACK GROUP, INC.** |
| By: |

---

Name: Derek Cassell <br> Title: Chief Executive Officer

------

**IN WITNESS WHEREOF**, each Buyer, the Lender and the Company have caused their respective signature page to this Registration Rights Agreement to be duly executed as of the date first written above.

---

| | |
|:---|:---|
| **BUYERS:** | **BUYERS:** |
| **JCP INVESTMENT PARTNERSHIP, LP** | **JCP INVESTMENT PARTNERSHIP, LP** |
| By: | JCP Investment Management, LLC, |
|  | Investment Manager |
| By: |  |

---

Name: James C. Pappas <br> Title: Managing Member

---

| |
|:---|
| **JCP INVESTMENT MANAGEMENT, LLC** |
| By:  |

---

Name: James C. Pappas <br> Title: Managing Member

---

| | |
|:---|:---|
| **CRC FOUNDERS FUND, LP** | **CRC FOUNDERS FUND, LP** |
| By: | Carlson Ridge Capital, LLC, |
|  | Investment Manager |
| By:  |  |

---

Name: Denver Smith <br> Title: Managing Member

**DEREK CASSELL**<br>

**TIMOTHY HARDY**<br>

------

**JAMES A. BERG**<br>

**SHAUN CALLAHAN**<br>

---

| | |
|:---|:---|
| **LENDER:** | **LENDER:** |
| **CHATHAM CAPITAL MANAGEMENT, LLC, not individually, but as agent for Chatham Investment Fund VI A, L.P., and Chatham Investment Fund VI QP, L.P.** | **CHATHAM CAPITAL MANAGEMENT, LLC, not individually, but as agent for Chatham Investment Fund VI A, L.P., and Chatham Investment Fund VI QP, L.P.** |
| By: CHATHAM CAPITAL MANAGEMENT, LLC | By: CHATHAM CAPITAL MANAGEMENT, LLC |
| By: |  |
|  | Name: |
|  | Title: |

---

------

Title:<br>

**SCHEDULE OF INITIAL INVESTORS**

---

| | | |
|:---|:---|:---|
| **Investor** | **Address and Email** | **Representative**'**s Address and Email** |
| **JCP Investment Partnership, LP; JCP Investment Management, LLC** | c/o JCP Investment Management, LLC<br> 1177 West Loop South, Suite 1320<br> Houston, TX 77027<br> Attention: James C. Pappas<br> Email: <u>jcp@jcpinv.com</u> | Olshan Frome Wolosky LLP<br> 1325 Avenue of the Americas<br> New York, New York 10019<br> Telephone: (212) 451-2300<br> Attention: Ryan P. Nebel, Esq. and Michael R. Neidell, Esq.<br> E-mail: <u>rnebel@olshanlaw.com</u> and <u>mneidell@olshanlaw.com</u> |
| **Carlson Ridge Capital, LLC** | c/o Carlson Ridge Capital, LLC<br> 1528 Wazee Street<br> Denver, CO 80202<br> Attention: Denver Smith<br> Email: <u>denver@carlsonridge.com</u> | N/A |
| **Chatham Capital Management, LLC, not individually, but as agent for Chatham Investment Fund VI A, L.P., and Chatham Investment Fund VI QP, L.P.** | c/o Chatham Capital<br> 1372 Peachtree Street NE Atlanta, GA 30309<br> Attention: Track Group Portfolio Manager<br> Email: <u>jh@chathamcapital.com</u> and<br> <u>np@chathamcapital.com</u> | McGuireWoods LLP 77 W. Wacker Drive, Suite 4100 Chicago, Illinois 60601-1818 Attention: Clayton Stallbaumer E-mail: <u>cstallbaumer@mcguirewoods.com</u> |
| **Derek Cassell** | 2403 Shaker Court, Naperville, IL 60564<br> Email: <u>derek.cassell@trackgrp.com</u>  | N/A |
| **Timothy Hardy** | 876 Elm ST, Sugar Grove, IL 60554<br> Email:<br> <u>tim_hardy@sbcglobal.net</u>  | N/A |
| **James A. Berg** | 747 S Hillside Ave, Elmhurst, IL 60126<br> Email:<br> <u>jab747@comcast.net</u>  | N/A |
| **Shaun Callahan** | 352 Sunset Ave, Aurora, IL<br> 60506<br> <u>Email: callahan.shaun@gmail.com</u>  | N/A |

---

------

**EXHIBIT A**

**FORM OF NOTICE OF EFFECTIVENESS**<br> **OF REGISTRATION STATEMENT**

Equiniti Trust Company, LLC<br> 48 Wall Street, Floor 23

New York, NY 10005

Re: <u>Track Group, Inc.</u>

Ladies and Gentlemen:

[We are][I am] counsel to Track Group, Inc., a Delaware corporation (the "**Company**"), and have represented the Company in connection with that certain Securities Purchase Agreement, dated as of April 30, 2026 (the "**Securities Purchase Agreement**"), entered into by and among the Company and the buyers named therein (collectively, the "**SPA Holders**") pursuant to which the Company issued to the SPA Holders (i) an aggregate of 29,471,429 shares of the Company's common stock, par value $0.0001 per share (the "**Common Stock**") and (ii) warrants exercisable for shares of Common Stock (the **"SPA Warrants").** In addition, in connection with that certain Credit Agreement dated as of April 30, 2026 (the "Credit Agreement"), among the Company, its affiliates party thereto, the lenders party thereto, and Chatham Capital Management, LLC the "**Lender**"), the Company has issued to the Lender, in its capacity as agent for Chatham Investment Fund VI A, L.P., and Chatham Investment Fund VI QP, L.P., a warrant exercisable for shares of Common Stock (the "**Lender Warrant**" and, together with the SPA Holders, the "**Holders**"). Pursuant to the Securities Purchase Agreement and the Credit Agreement, the Company also has entered into a Registration Rights Agreement with the Holders (the "**Registration Rights Agreement**") pursuant to which the Company agreed, among other things, to register the resale of the Registrable Securities (as defined in the Registration Rights Agreement) under the Securities Act of 1933, as amended (the "**1933 Act**"). In connection with the Company's obligations under the Registration Rights Agreement, on ____________ ___, 2026, the Company filed a Registration Statement on Form S-___ (File No. 333-_____________) (the "**Registration Statement**") with the Securities and Exchange Commission (the "**SEC**") relating to the Registrable Securities which names each of the Holders as a selling stockholder thereunder.

In connection with the foregoing, [we][I] advise you that a member of the SEC's staff has advised [us][me] by telephone that the SEC has entered an order declaring the Registration Statement effective under the 1933 Act at [ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and [we][I] have no knowledge, after telephonic inquiry of a member of the SEC's staff, that any stop order suspending its effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant to the Registration Statement.

------

This letter shall serve as our standing instruction to you that the shares of Common Stock are freely transferable by the Holders pursuant to the Registration Statement. You need not require further letters from us to effect any future legend-free issuance or reissuance of shares of Common Stock to the Holders as contemplated by the Company's Irrevocable Transfer Agent Instructions dated [●], 2026.

---

| |
|:---|
| Very truly yours, |
| [ISSUER'S COUNSEL] |
| By:  |

---

Name: <br> Title:

CC: [LIST NAMES OF HOLDERS]

------

**EXHIBIT B**

**PLAN OF DISTRIBUTION**

We are registering the shares of common stock issued pursuant to the terms of the Securities Purchase Agreement, and issuable upon the exercise of warrants issued pursuant to the Securities Purchase Agreement and the Credit Agreement, to permit the resale of these shares of common stock by the selling stockholders from time to time after the date of this prospectus. We will not receive any of the proceeds from the sale by the selling stockholders of the shares of common stock. We will bear all fees and expenses incident to our obligation to register the shares of common stock.

The selling stockholders may sell all or a portion of the shares of common stock beneficially owned by them and offered hereby from time to time directly or through one or more underwriters, broker-dealers or agents. If the shares of common stock are sold through underwriters or broker-dealers, the selling stockholders will be responsible for underwriting discounts or commissions or agent's commissions. The shares of common stock may be sold in one or more transactions at fixed prices, at prevailing market prices at the time of the sale, at varying prices determined at the time of sale, or at negotiated prices. These sales may be effected in transactions, which may involve crosses or block transactions,

● on any national securities exchange or quotation service on which the securities may be listed or quoted at the time of sale;

● in the over-the-counter market;

● in transactions otherwise than on these exchanges or systems or in the over-the-counter market;

● through the writing of options, whether such options are listed on an options exchange or otherwise;

● ordinary brokerage transactions and transactions in which the broker-dealer solicits purchasers;

● block trades in which the broker-dealer will attempt to sell the shares as agent but may position and resell a portion of the block as principal to facilitate the transaction;

● purchases by a broker-dealer as principal and resale by the broker-dealer for its account;

● an exchange distribution in accordance with the rules of the applicable exchange;

● privately negotiated transactions;

● short sales;

------

● sales pursuant to Rule 144;

● broker-dealers may agree with the selling securityholders to sell a specified number of such shares at a stipulated price per share;

● a combination of any such methods of sale; and

● any other method permitted pursuant to applicable law.

If the selling stockholders effect such transactions by selling shares of common stock to or through underwriters, broker-dealers or agents, such underwriters, broker-dealers or agents may receive commissions in the form of discounts, concessions or commissions from the selling stockholders or commissions from purchasers of the shares of common stock for whom they may act as agent or to whom they may sell as principal (which discounts, concessions or commissions as to particular underwriters, broker-dealers or agents may be in excess of those customary in the types of transactions involved). In connection with sales of the shares of common stock or otherwise, the selling stockholders may enter into hedging transactions with broker-dealers, which may in turn engage in short sales of the shares of common stock in the course of hedging in positions they assume. The selling stockholders may also sell shares of common stock short and deliver shares of common stock covered by this prospectus to close out short positions and to return borrowed shares in connection with such short sales. The selling stockholders may also loan or pledge shares of common stock to broker-dealers that in turn may sell such shares.

The selling stockholders may pledge or grant a security interest in some or all of the warrants or shares of common stock owned by them and, if they default in the performance of their secured obligations, the pledgees or secured parties may offer and sell the shares of common stock from time to time pursuant to this prospectus or any amendment to this prospectus under Rule 424(b)(3) or other applicable provision of the Securities Act of 1933, as amended, amending, if necessary, the list of selling stockholders to include the pledgee, transferee or other successors in interest as selling stockholders under this prospectus. The selling stockholders also may transfer and donate the shares of common stock in other circumstances in which case the transferees, donees, pledgees or other successors in interest will be the selling beneficial owners for purposes of this prospectus.

The selling stockholders and any broker-dealer participating in the distribution of the shares of common stock may be deemed to be "underwriters" within the meaning of the Securities Act, and any commission paid, or any discounts or concessions allowed to, any such broker-dealer may be deemed to be underwriting commissions or discounts under the Securities Act. At the time a particular offering of the shares of common stock is made, a prospectus supplement, if required, will be distributed which will set forth the aggregate amount of shares of common stock being offered and the terms of the offering, including the name or names of any broker-dealers or agents, any discounts, commissions and other terms constituting compensation from the selling stockholders and any discounts, commissions or concessions allowed or reallowed or paid to broker-dealers.

------

Under the securities laws of some states, the shares of common stock may be sold in such states only through registered or licensed brokers or dealers. In addition, in some states the shares of common stock may not be sold unless such shares have been registered or qualified for sale in such state or an exemption from registration or qualification is available and is complied with.

There can be no assurance that any selling stockholder will sell any or all of the shares of common stock registered pursuant to the registration statement, of which this prospectus forms a part.

The selling stockholders and any other person participating in such distribution will be subject to applicable provisions of the Securities Exchange Act of 1934, as amended, and the rules and regulations thereunder, including, without limitation, Regulation M of the Exchange Act, which may limit the timing of purchases and sales of any of the shares of common stock by the selling stockholders and any other participating person. Regulation M may also restrict the ability of any person engaged in the distribution of the shares of common stock to engage in market-making activities with respect to the shares of common stock. All of the foregoing may affect the marketability of the shares of common stock and the ability of any person or entity to engage in market-making activities with respect to the shares of common stock.

We will pay all expenses of the registration of the shares of common stock pursuant to the registration rights agreement, estimated to be $[ ] in total, including, without limitation, Securities and Exchange Commission filing fees and expenses of compliance with state securities or "blue sky" laws; provided, however, that a selling stockholder will pay all underwriting discounts and selling commissions, if any. We will indemnify the selling stockholders against liabilities, including some liabilities under the Securities Act, in accordance with the registration rights agreements, or the selling stockholders will be entitled to contribution. We may be indemnified by the selling stockholders against civil liabilities, including liabilities under the Securities Act, that may arise from any written information furnished to us by the selling stockholder specifically for use in this prospectus, in accordance with the related registration rights agreement, or we may be entitled to contribution.

Once sold under the registration statement, of which this prospectus forms a part, the shares of common stock will be freely tradable in the hands of persons other than our affiliates.

## Exhibit 10.5

**Exhibit 10.5**

![header2.jpg](header2.jpg)

April 30, 2026

ADS Securities LLC

Ahmed Khalifa Almehairi

Chief Executive Officer

[\*\*]

[\*\*]

Dear Mr. Almehairi:

The Refinancing Term Sheet (as defined below) provides that, as one of the conditions of the willingness of the New Lender (as defined below) to provide to Track Group, Inc., a Delaware corporation ("<u>TRCK</u>") the loans described in the Refinancing Term Sheet, Carlson Ridge Capital, LLC, a Delaware limited liability company ("<u>CRC</u>"), JCP Investment Management, LLC, a Texas limited liability company ("<u>JCP</u>"), and certain members of the management team at TRCK would need to invest an aggregate of $10,315,000 (the "<u>PIPE Investment Amount</u>") in Shares (as defined below) (such investment, the "<u>PIPE Investment</u>"). We understand that CRC and JCP are also concurrently purchasing an aggregate of 4,706,579 shares of common stock of TRCK (the "<u>Secondary Shares</u>") from ETS Limited ("<u>ETS</u>"), an affiliate of ADSS (the "<u>Secondary Transaction</u>").

This letter agreement is for the purpose of confirming to ADS Securities LLC ("<u>ADSS</u>") that, upon the closing of the PIPE Investment and the Credit Agreement with the New Lender described in the Refinancing Term Sheet (the "<u>Credit Agreement</u>")),but in any event not prior to the time that CRC and JCP receive the Secondary Shares pursuant to the Secondary Transaction, (the "<u>Secondary Shares Transfer Date</u>"), TRCK would, in consideration of ADSS' considerable time and expense in assisting TRCK in connection with a refinancing transaction involving the TRCK Debt (as defined below) and a related equity financing, pay to ADSS a fee of $4,375,000, which would be paid by TRCK to ADSS using proceeds of the PIPE Investment and / or Credit Agreement (by wire transfer of immediately available U.S. dollar funds to the bank account designated in writing by ADSS) on the Secondary Shares Transfer Date or as soon as practicable (and, in any event, within three business days) thereafter.

As used herein, the following capitalized terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. " <u>Amended Facility Agreement</u> " means the Facility Agreement between TRCK and Conrent which was initially entered into on December 30, 2013, as amended, amended and restated, and/or supplemented through the date hereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. " <u>Conrent</u> " means Conrent Invest S.A., a public limited liability company (société anonyme), incorporated under the laws of the Grand Duchy of Luxembourg;

![footer2.jpg](footer2.jpg)

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![header2.jpg](header2.jpg)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. " <u>New Lender</u> " means the lender (or its affiliate) which is a party to the Refinancing Term Sheet;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. " <u>Refinancing Term Sheet</u> " means that certain Proposal Letter for a $24.0 million Senior Secured Credit Facility, dated February 19, 2026, by and between TRCK and the New Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. " <u>Shares</u> " means shares of common stock of Track Group, Inc., par value $0.0001 per share; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. " <u>TRCK Debt</u> " means all loans and indebtedness, accrued and unpaid interest thereon, and other liabilities relating thereto, in each case owed by TRCK to the lenders (as identified in the Amended Facility Agreement) pursuant to the terms and conditions of the Amended Facility Agreement.

All matters arising out of or relating to this letter agreement shall be governed by and construed in accordance with the internal laws of the State of Delaware without giving effect to any choice or conflict of law provision or rule (whether of the State of Delaware or any other jurisdiction). Any legal suit, action, proceeding, or dispute arising out of or related to this letter agreement or the transactions contemplated hereby may be instituted in the federal courts of the United States of America or the courts of the State of Delaware in each case located in New Castle County, Delaware, and each party irrevocably submits to the exclusive jurisdiction of such courts in any such suit, action, proceeding, or dispute. This letter agreement is for the sole benefit of the parties hereto and their respective legal representatives and successors, and nothing herein, express or implied, is intended to or shall confer upon any other person any legal or equitable right, benefit, or remedy of any nature whatsoever under or by reason of this letter agreement. The parties hereto have participated jointly in the negotiation and drafting of this letter agreement. In the event that an ambiguity or a question of intent or interpretation arises, this letter agreement shall be construed as if drafted jointly by TRCK and ADSS, and no presumption or burden of proof shall arise favoring or disfavoring either party by virtue of the authorship of any provision of this letter agreement. This letter agreement may be executed in counterparts, each of which shall be deemed to be an original, but all of which together shall constitute one agreement. A manual signature on this letter agreement whose image shall have been transmitted electronically will constitute an original signature, and delivery of copies of this letter agreement by electronic transmission will constitute delivery of this letter agreement, for all purposes. Electronic signatures (e.g., DocuSign) will have the same legal force and effect as ink signatures.

*[SIGNATURE PAGE FOLLOWS]*

![footer2.jpg](footer2.jpg)

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![header2.jpg](header2.jpg)

If you are in agreement with the terms set forth above, please sign this letter agreement in the space provided below and return an executed copy to the attention of Derek Cassell, Chief Executive Officer of TRCK.

---

| | |
|:---|:---|
| Very truly yours,<br>**Track Group, Inc.** | Very truly yours,<br>**Track Group, Inc.** |
| By: | /s/ Derek Cassell |
|  | Name: Derek Cassell |
|  | Title: Chief Executive Officer |

---

---

| | |
|:---|:---|
| <u>AGREED TO AND ACCEPTED</u>:<br>**ADS Securities LLC**  | <u>AGREED TO AND ACCEPTED</u>:<br>**ADS Securities LLC**  |
| By: | /s/ Ahmed Khalifa Almehairi |
|  | Name: Ahmed Khalifa Almehairi |
|  | Title: Chief Executive Officer |

---

![footer2.jpg](footer2.jpg)

## Exhibit 10.6

**Exhibit 10.6**

![kas.jpg](kas.jpg)

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**DATED APRIL 2026**

**Conrent Invest S.A.,** 

**acting on behalf of its compartment** "**Safety 2**" <br> **as the** "**Lender**"

**AND**

**Track Group, Inc.** 

**as** "**Track**"

**Conrent Amended Facility Payoff Agreement**

![kasbig.jpg](kasbig.jpg)

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![kas.jpg](kas.jpg)

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**TABLE OF CONTENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. DEFINITIONS 1

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. PAY-OFF 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. RELEASE AND CANCELLATION 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. CONTINUATION 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. FURTHER ASSURANCE 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. LIMITED RECOURSE AND NON-PETITION 2

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. MISCELLANEOUS 3

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. GOVERNING LAW AND JURISDICTION 3

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![kas.jpg](kas.jpg)

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**THIS DEED** is made on April 2026

**BETWEEN**:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **Conrent Invest S.A.**, a public limited liability company (*soci* é *t* é *anonyme*), incorporated under the laws of the Grand Duchy of Luxembourg, subject to, as an unregulated securitisation company *(soci* é *t* é *de titrisation)* the Luxembourg law of 22 March 2004 on securitisation, as amended (the "**Securitisation Law** "), and having its registered office at 2, Rue des Gaulois, L-1618 Luxembourg, Grand Duchy of Luxembourg, registered with the Luxembourg trade and companies register under number B 170.360, acting on behalf of its Compartment "Safety 2", (the "**Lender** "); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **Track Group, Inc.**, a Delaware corporation, having its registered office at 200 East 5<sup>th</sup> Avenue, Suite 100, Naperville, Illinois 60563, United States of America ()"**Track** ").

**IT IS AGREED** as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.** **DEFINITIONS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 In this Deed:

---

| | |
|:---|:---|
| **Effective Time** has the meaning given in Clause 2 (*Pay-off*). | **Effective Time** has the meaning given in Clause 2 (*Pay-off*). |
| **Facilities Agreement** means the facilities agreement originally dated 30 December 2013 as amended on May 30, 2014, as amended and restated on 30 June 2015, as amended and restated on 19 July 2018, as amended and restated on 24 February 2019, as amended and restated on 10 January 2020, as amended and restated on 21 December 2020 and as last amended and restated on 26 April 2023 and made between the Lender and Track as the borrower (as amended, varied and amended and restated from time to time). | **Facilities Agreement** means the facilities agreement originally dated 30 December 2013 as amended on May 30, 2014, as amended and restated on 30 June 2015, as amended and restated on 19 July 2018, as amended and restated on 24 February 2019, as amended and restated on 10 January 2020, as amended and restated on 21 December 2020 and as last amended and restated on 26 April 2023 and made between the Lender and Track as the borrower (as amended, varied and amended and restated from time to time). |
| **Notification Parties** means Each of the following parties, Track, Chatham Capital and McGuireWoods LLP, with the following email addresses: | **Notification Parties** means Each of the following parties, Track, Chatham Capital and McGuireWoods LLP, with the following email addresses: |
| Track: | Jim Berg [\*\*]<br>|
| Chatham Capital: | Jeff Hagar – [\*\*]<br>|
| McGuireWoods LLP: | Clayton Stallbaumer – [\*\*] |
| **Parties** means each of the parties to this Deed. | **Parties** means each of the parties to this Deed. |
| **Pay-off Account** means the bank account of the Lender held with Baader Bank AG in Germany with the following details: | **Pay-off Account** means the bank account of the Lender held with Baader Bank AG in Germany with the following details: |
| Bank: | [\*\*]<br>|
| Bank address: | [\*\*]<br>|
| Account holder: | [\*\*]<br>|
| IBAN: | [\*\*]<br>|
| **Pay-off Amount** means $23,520,000 (in words: twenty-three million five hundred twenty thousand United States Dollar). | **Pay-off Amount** means $23,520,000 (in words: twenty-three million five hundred twenty thousand United States Dollar). |
| **Repayment Date** means the date on which Track transfers the Pay-off Amount, which shall be on 30 April 2026. | **Repayment Date** means the date on which Track transfers the Pay-off Amount, which shall be on 30 April 2026. |

---

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![kas.jpg](kas.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Terms defined in the Facilities Agreement shall have the same meaning when used in this Deed unless a contrary indication appears herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.** **PAY-OFF AND REPRESENTATION AND WARRANTY** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.1 Track shall pay the Pay-off Amount (or procure the payment thereof) in full and in cleared and immediately available funds in United States Dollar to the Pay-off Account on the Repayment Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.2 On receipt by the Lender of the Pay-off Amount into the Pay-off Account in accordance with Clause 2.1 above:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the **Effective Time** shall immediately occur; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Lender shall promptly (and in any event on the same date thereof) provide written confirmation to the Notification Parties (with email sufficient for this purpose) that it has received the Pay-off Amount in full and in cleared and immediately available funds in the relevant currency and that the Effective Time has occurred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.3 Lender represents and warrants that it (i) is the sole legal and beneficial owner of all right, title and interest of the "Lender" as defined in the Facilities Agreement and (ii) has not assigned, granted any participation interest in or otherwise directly or indirectly transferred any of its right, title and/or interest in the "Obligations" as defined in the Facilities Agreement or in any other "Facility Document" as defined in the Facilities Agreement to any third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.** **RELEASE AND CANCELLATION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.1 With immediate effect from the Effective Time, the Lender hereby irrevocably and unconditionally, subject only to Clause 4 (*Continuation*):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) releases and discharges Track from all present or future, actual or contingent liabilities, obligations and guarantees created, evidenced or conferred by, and all claims, charges, liens, security interests, actions, suit, accounts and demands arising under or in any way related to the Facilities Agreement and/or or any other Facility Document; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) confirms that the Facilities Agreement and each other Facility Document are hereby terminated and cancelled.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.2 Each release pursuant to Clause 3.1 above is given without recourse to, or any representation or warranty by, the Lender except the representations and warranties given in Clause 2.3 which shall survive the Effective Time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.** **CONTINUATION** 

Notwithstanding any other provision of this Deed, nothing in this Deed is intended to release any person from any confidentiality, indemnification or expense reimbursement provisions contained in the Facilities Agreement or any other agreement to which it is a party that are specifically stated to survive the release or termination of the Facilities Agreement or such other agreement.

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![kas.jpg](kas.jpg)

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.** **FURTHER ASSURANCE** 

The Lender will, at the request of any Notification Party and at the sole cost of Track, do all such things and enter into and execute all such deeds, documents, memoranda, agreements or instruments as may be reasonably necessary to give effect to the provisions of this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.** **LIMITED RECOURSE AND NON-PETITION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.** **MISCELLANEOUS** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1 The Contracts (Rights of Third Parties) Act 1999 shall not apply to this Deed and no rights or benefits expressly or impliedly conferred by this Deed shall be enforceable under that Act against the parties to this Deed by any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.2 If any provision of this Deed is or becomes invalid, illegal or unenforceable in any respect under any law, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired in any way.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3 This Deed may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Deed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.** **GOVERNING LAW AND JURISDICTION** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.1 This Deed and any non-contractual claims arising out of or in connection with it shall be governed by and construed in accordance with English law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.2 The Parties agree that the courts of England shall have exclusive jurisdiction to settle any dispute arising out of or in connection with this Deed, whether contractual or non-contractual (including a dispute regarding the existence, validity or termination of this Deed) (a "**Dispute** "). The Parties agree that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no party will argue to the contrary.

**IN WITNESS** whereof this Deed of Release has been duly executed and delivered as a deed on the date stated at the beginning of this Deed.

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![kas.jpg](kas.jpg)

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**SIGNATORIES TO DEED OF RELEASE**

**THE LENDER**

**EXECUTED as a DEED** by<br> **Conrent Invest S.A.,** acting on behalf of its Compartment "Safety 2",

acting by:

Simplex S.à r.L., the sole director of the Lender.

Represented by: Mr. Heinrich Bernhard Schmitz, the sole manager of Simplex S.à r.L.

Authorised Signatory: *<u>/s/ Heinrich Bernhard Schmitz</u>*

In the presence of:

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| | |
|:---|:---|
| Name: | Mrs. Judith Jäger |
| Address: | [\*\*] |
| Occupation: | Employee of Simplex S.à r.L. |

---

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![kas.jpg](kas.jpg)

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**TRACK**

**EXECUTED as a DEED** by<br> **Track Group, Inc.** acting by:

<u>Derek Cassell</u> as Chief Executive Officer:

*<u>/s/ Derek Cassell</u>*

In the presence of:

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| | |
|:---|:---|
| Witness: | /*s*/ *Shaun Callahan* |
| Name: | Shaun Callahn |
| Address: | [\*] |
| Occupation: | Counsel |

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## Exhibit 99.1

**Exhibit 99.1**

**Track Group Inc. Announces Completion of Comprehensive Recapitalization and Debt Refinancing**

**Transactions Significantly Deleverage Balance Sheet, Extend Debt Maturity, and Align Ownership for Long-Term Value Creation**

**NAPERVILLE, ILLINOIS** — **May 1, 2026** — Track Group, Inc. (OTCQB: TRCK) a global leader in offender tracking and monitoring services, today announced the successful completion of a transformational series of comprehensive recapitalization and refinancing transactions that materially strengthen its balance sheet, enhance financial flexibility, and right-size its capital structure to enable the company to grow shareholder value over the long-term.

**Transaction(s) Highlights**

● **Net Debt\* Reduced by ~$27 million** (~63% decrease **)** through materially discounted debt settlement (~50%), **reducing Net Leverage\* From 7.2 to 2.6**, financed through:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o New Credit Facility: 5-year $21 million term loan, funded at close, and availability under a $1 million interest line and $2 million ABL revolver

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ *Interest Rate: 13.5% fixed (11% cash, 2.5% PIK)* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ *Mandatory Amortization: Years 1 & 2 = 0%, Thereafter = 5%* 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;o PIPE: ~$10.3 million raised at $0.35 per share, (29,471,429 shares)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;■ *Participants: TRCK Management 1.5%, Carlson Ridge Capital, LLC (* "*CRC* "*) 49.25%, JCP Investment Management, LLC (* "*JCP* "*) 49.25%* 

● **Debt Maturity Extended To 5-Years** 

● **Annual Cash Interest Savings of ~$200,000** anticipated over the next 12-months

● **Board, Management, Creditor, & Shareholder Alignment** with the new Board representing ~75% of go-forward ownership, management participation in the PIPE, and creditor alignment through 2.5% equity warrant coverage

*\*Net Debt = (Long-Term Debt + Accrued Unpaid Interest* – *Cash & Equivalents); Net Leverage = (Net Debt divided by TTM Adjusted EBITDA)*

The transactions were supported by the Company's new lender, Chatham Capital, CRC, JCP, and ADS Securities LLC, a subsidiary of Abu Dhabi Developmental Holding Company PJSC.

Derek Cassell, Chief Executive Officer**,** said "These transactions represent a significant milestone for us. By materially reducing leverage, extending maturities, and bringing in aligned, long-term partners with proven financial and industry-specific accumen, we've strengthened our financial and strategic foundations and are well-positioned to grow shareholder value."

**Leadership and Governance Updates**

In connection with the Transactions, the Board has been reconstituted with new directors with deep collective experience in community corrections, capital markets, M&A, capital allocation, and corporate governance. The Company has appointed Denver Smith, CFA, as Chairman of the Board. Additional board members include Kyle Kidd, CPA, Matthew Powalski, CPA, Jacob Saour, John "Rocky" Sullivan, and Derek Cassell, current CEO. Legacy directors have stepped down as part of the transition. Current management will continue to lead day-to-day operations and execute on the Company's strategic plan.

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Denver Smith, Chairman of the Board, said "I'm grateful to all parties involved for their collaboration and commitment in completing this comprehensive recapitalization. The prior capital structure, inherited by current management, was not sustainable. This is no longer the case. We're pleased to continue our partnership with management, built over the past year, under a refined governance framework emphasizing stakeholder alignment. The Company is well-positioned to capitalize on its significant opportunities to reduce recidivism, improve public safety, and deliver economic value to its customers. The Board is excited to move forward and support management in driving sustainable growth and long-term value creation post-closing."

Additional details will also be available on a Current Report on Form 8-K to be filed with the Securities and Exchange Commission today, May 1, 2026.

More commentary on the transactions will be available in a transaction overview presentation that will be posted to the investor relations section of the company's website in the near future.

Disclosure Law Group and Winston & Strawn LLP served as legal counsel to the Company on the transactions. Olshan Frome Wolosky LLP, and Steptoe & Johnson PLLC served as legal counsel to CRC and JCP on the transactions. Brookwood Associates served as the debt placement agent on the transactions.

**About Track Group, Inc.** 

Track Group designs, manufactures, and markets location tracking devices; as well as develops and sells a variety of related software, services, and accessories, networking solutions, and monitoring applications. The Company's products and services are designed to empower professionals in security, law enforcement, corrections, and rehabilitation organizations worldwide with single-sourced offender management solutions that integrate reliable intervention technologies to support re-socialization and monitoring initiatives.

The Company currently trades under the ticker symbol "TRCK" on the OTCQB exchange. For more information, visit www.trackgrp.com.

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**Forward-Looking Statements** 

Any statements contained in this document that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "forecast," "intend," "may," "plan," "project," "predict," "if", "should" and "will" and similar expressions as they relate to Track Group, Inc., and subsidiaries ("Track Group") are intended to identify such forward-looking statements. Examples of forward-looking statements include, among others, statements we make regarding annual cash interest, the Company's ability to grow shareholder value, the Company's ability to capitalize on its new structure, and expected operating results, such as revenue growth and earnings. These statements are only predictions and reflect Track Group's current beliefs and expectations with respect to future events and are based on assumptions and subject to risks and uncertainties and subject to change at any time. Track Group may from time-to-time update these publicly announced projections, but it is not obligated to do so. Any projections of future results of operations should not be construed in any manner as a guarantee that such results will in fact occur. These projections are subject to change and could differ materially from final reported results. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: the Companies ability to capitalize on its new capital structure; the Company's ability to repay the terms of its restructured debt; and the Company's ability to successfully utilize the proceeds from the financing to support its business plan. For a discussion of such risks and uncertainties, see "Risk Factors" in Track Group's annual report on Form 10-K, its quarterly report on Form 10-Q, and its other reports filed with the Securities and Exchange Commission under the Securities Exchange Act of 1934, as amended. New risks emerge from time to time. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the dates on which they are made.

**Non-GAAP Financial Measures**

This release includes financial measures defined as "non-GAAP financial measures" by the Securities and Exchange Commission including, but not limited to, non-GAAP EBITDA, non-GAAP Adjusted EBITDA, non-GAAP Net Debt, non-GAAP Total Leverage Ratio, and non-GAAP Net Leverage Ratio. These measures may be different from non-GAAP financial measures used by other companies. The presentation of this financial information, which is not prepared under any comprehensive set of accounting rules or principles, is not intended to be considered in isolation or as a substitute for the financial information prepared and presented in accordance with generally accepted accounting principles. Reconciliations of these non-GAAP financial measures are based on the financial figures for the respective period.

Non-GAAP Adjusted EBITDA excludes items included but not limited to interest, taxes, depreciation, amortization, impairment charges, gains and losses, currency effects, one-time charges or benefits that are not indicative of operations, charges to consolidate, integrate or consider recently acquired businesses, costs of closing facilities, stock based or other non-cash compensation or other stated cash and non-cash charges, and other adjustments deemed acceptable based on a recently completed Quality of Earnings mandated by the new lender, Chatham Capital, which are outlined in this presentation (the "Adjustments"). Non-GAAP Net Debt is equal to total long-term debt of the company plus accrued and unpaid interest, less cash and cash equivalents. Non-GAAP Net Leverage Ratio is equal to Net Debt, as defined above, divided by Non-GAAP Adjusted EBITDA, as defined above, over the trailing twelve-month period. Non-GAAP Total Leverage Ratio is equal to total long-term debt of the company plus accrued and unpaid interest, divided by Non-GAAP Adjusted EBITDA, as defined above.

The Company believes the non-GAAP measures provide useful information to both management and investors when factoring in the Adjustments. Specific disclosure regarding the Company's financial results, including management's analysis of results from operations and financial condition, are contained in the Company's annual report on Form 10-K for the fiscal year ended September 30, 2025, and other reports filed with the Securities and Exchange Commission. Investors are encouraged to carefully read and consider such disclosure and analysis contained in the Company's Form 10-K and other reports, including the risk factors contained in such Form 10-K.