Document:

ELEVENTH AMENDMENT TO

LOAN AND SERVICING AGREEMENT

(Golub Capital BDC Funding LLC)

 

THIS ELEVENTH AMENDMENT
TO LOAN AND SERVICING AGREEMENT, dated as of October 31, 2013 (this “Amendment”), is entered into by and among
GOLUB CAPITAL BDC Funding LLC, as the Borrower (the “Borrower”),
GOLUB CAPITAL BDC, INC., as the Transferor and the Servicer, the Institutional Lender identified on the signature pages hereto,
WELLS FARGO BANK, N.A., as the Collateral Agent, the Account Bank and the Collateral Custodian, and WELLS FARGO SECURITIES, LLC,
as the Administrative Agent (in such capacity, the “Administrative Agent”).

 

RECITALS

 

WHEREAS, the above-named
parties have entered into that certain Loan and Servicing Agreement, dated as of July 21, 2011 (as amended, supplemented or otherwise
modified from time to time, the “Agreement”), by and among the Borrower, the Transferor, the Servicer, each
of the Conduit Lenders and Institutional Lenders from time to time party thereto, each of the Lender Agents from time to time party
thereto, and the Collateral Agent, the Account Bank and the Collateral Custodian;

 

WHEREAS, pursuant to
and in accordance with Section 11.01 of the Agreement, the parties hereto desire to amend the Agreement in certain respects as
provided herein;

 

NOW, THEREFORE, based
upon the above Recitals, the mutual premises and agreements contained herein and other good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the undersigned, intending to be legally bound, hereby agree as follows:

 

SECTION
1.    Definitions.

 

Each capitalized term
used but not defined herein has the meaning ascribed thereto in the Agreement.

 

SECTION
2.    Amendment.

 

2.1The definition of “Adjusted
Borrowing Value” in Section 1.01 of the Agreement shall be amended and restated in its entirety as follows:

 

““Adjusted Borrowing Value” means
for any Eligible Loan Asset, for any date of determination, an amount equal to the lowest of: (i) the Outstanding Balance of such
Eligible Loan Asset at such time, (ii) the Advance Date Assigned Value of such Eligible Loan Asset multiplied by the Outstanding
Balance of such Eligible Loan Asset at such time and (iii) the Assigned Value of such Eligible Loan Asset at such time multiplied
by the Outstanding Balance of such Eligible Loan Asset at such time; provided that the parties hereby agree that the Adjusted
Borrowing Value of any Loan Asset that is no longer an Eligible Loan Asset shall be zero. Amounts in excess of (a) $22,000,000
with respect to each of any two (2) Obligors (including any Affiliate thereof), (b) $17,500,000 with respect to each of any two
(2) additional Obligors (including any Affiliate thereof) and (c) $15,000,000 in all other instances shall not be included in the
Adjusted Borrowing Value of the applicable Eligible Loan Assets.”

 

    	 

    	 

    

 

 

2.2The definition of “Maximum
Facility Amount” in Section 1.01 of the Agreement shall be amended and restated in its entirety as follows:

 

““Maximum Facility Amount” means
the aggregate Commitments as then in effect, which amount shall not exceed $250,000,000; provided that at all times after
the Reinvestment Period, the Maximum Facility Amount shall mean the aggregate Advances Outstanding at such time.”

 

2.3The definition of “Minimum
Equity Amount” in Section 1.01 of the Agreement shall be amended and restated in its entirety as follows:

 

““Minimum Equity Amount” means,
as of any date of determination, an amount equal to the greater of (a) $52,500,000 and (b) the sum of the Adjusted Borrowing Value
of all Eligible Loan Assets of the three largest Obligors included in the Collateral Portfolio.”

 

2.4The Reinvestment Period under the
Agreement is hereby amended to replace the date “November 21, 2013” where it appears in the definition of “Reinvestment
Period” in Section 1.01 of the Agreement with the date “October 21, 2014”.

 

2.5The Stated Maturity Date under the
Agreement is hereby amended to replace the date “October 20, 2017” where it appears in the definition of “Stated
Maturity Date” in Section 1.01 of the Agreement with the date “October 22, 2018”.

 

2.6The Commitment of Wells Fargo Bank,
N.A. on the cover page and Annex A to the Agreement shall be amended and restated as “$250,000,000”.

 

2.7Section 2.09 of the Agreement is
hereby amended and restated in its entirety as follows:

 

“Section 2.09Non-Usage Fee.

 

The Borrower shall pay, in accordance with Section 2.04,
pro rata to each Lender (either directly or through the applicable Lender Agent), a non-usage fee (the “Non-Usage Fee”)
payable in arrears for each Remittance Period, equal to the sum of the products for each day during such Remittance Period of (i)
one divided by 360, (ii) the applicable Non-Usage Fee Rate (as defined below), and (iii) the aggregate Commitments minus the Advances
Outstanding on such day (such amount, the “Unused Portion”). The Non-Usage Fee Rate (the “Non-Usage
Fee Rate”) shall be equal to, except as provided in clauses (1), (2), (3) and (4) below, (i) 0.50% on any Unused Portion
up to or equal to the first $100,000,000 of such Unused Portion and (ii) 2.00% on any Unused Portion in excess of the first $100,000,000:

 

(1)for the period from (and including) July 10, 2013
through (and excluding) September 18, 2013, (i) 0.50% on any Unused Portion up to or equal to the first $40,000,000 of such Unused
Portion and (ii) 2.00% on any Unused Portion in excess of the first $40,000,000;

 

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(2)for the period from (and including) September 18,
2013 through (and excluding) October 18, 2013, 0.50%;

 

(3)from (and including) October 18, 2013 through (and
excluding) October 31, 2013, (i) 0.50% on any Unused Portion up to or equal to the first $70,000,000 of such Unused Portion
and (ii) 2.00% on any Unused Portion in excess of the first $70,000,000; and

 

(4)for the period from (and including) October 31, 2013
through (and excluding) November 18, 2013, (i) 0.50% on any Unused Portion up to or equal to the first $130,000,000 of such Unused
Portion and (ii) 2.00% on any Unused Portion in excess of the first $130,000,000.”

 

SECTION
3.    Agreement in Full Force and
Effect as Amended.

 

Except as specifically
amended hereby, all provisions of the Agreement shall remain in full force and effect. This Amendment shall not be deemed to expressly
or impliedly waive, amend or supplement any provision of the Agreement other than as expressly set forth herein and shall not constitute
a novation of the Agreement.

 

SECTION
4.    Representations and Warranties.

 

The Borrower hereby
represents and warrants as of the date of this Amendment as follows:

 

(a)               
this Amendment has been duly executed and delivered by it;

 

(b)              
this Amendment constitutes its legal, valid and binding obligation, enforceable against it in accordance with its terms,
except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
the enforcement of creditors’ rights generally or by general principles of equity; and

 

(c)               
there is no Event of Default, Unmatured Event of Default, or Servicer Termination Event that is continuing or would result
from entering into this Amendment.

 

SECTION
5.    Conditions to Effectiveness.

 

The effectiveness of
this Amendment is subject to receipt by the Administrative Agent of (i) executed counterparts (or other evidence of execution,
including facsimile signatures, satisfactory to the Administrative Agent) of this Amendment, (ii) the fees payable pursuant to
that certain fee letter agreement dated the date hereof and (iii) a replacement Variable Funding Note with a face amount of $250,000,000
in exchange for the outstanding Variable Funding Note held by Wells Fargo Bank, N.A.

 

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SECTION
6.    Miscellaneous.

 

(a)               
This Amendment may be executed in any number of counterparts (including by facsimile), and by the different parties hereto
on the same or separate counterparts, each of which shall be deemed to be an original instrument but all of which together shall
constitute one and the same agreement.

 

(b)              
The descriptive headings of the various sections of this Amendment are inserted for convenience of reference only and shall
not be deemed to affect the meaning or construction of any of the provisions hereof.

 

(c)               
This Amendment may not be amended or otherwise modified except as provided in the Agreement.

 

(d)              
The failure or unenforceability of any provision hereof shall not affect the other provisions of this Amendment.

 

(e)               
Whenever the context and construction so require, all words used in the singular number herein shall be deemed to have been
used in the plural, and vice versa, and the masculine gender shall include the feminine and neuter and the neuter shall include
the masculine and feminine.

 

(f)               
This Amendment represents the final agreement between the parties only with respect to the subject matter expressly covered
hereby and may not be contradicted by evidence of prior, contemporaneous or subsequent oral agreements between the parties. There
are no unwritten oral agreements between the parties.

 

(g)              
THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED AND
INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

[Remainder of Page Intentionally Left
Blank]

 

 

 

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IN WITNESS WHEREOF,
the undersigned have caused this Amendment to be executed by their respective officers thereunto duly authorized, as of the date
first written above.

 

	BORROWER:	GOLUB CAPITAL BDC FUNDING LLC
	 	 
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	 
	THE TRANSFEROR AND SERVICER:	GOLUB CAPITAL BDC, INC.
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	 
	THE COLLATERAL AGENT, ACCOUNT BANK AND COLLATERAL CUSTODIAN:	WELLS FARGO BANK, N.A.
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 

 

 

[Signatures Continue on the Following
Page]

 

 

    	S-1

    	 

    

 

	ADMINISTRATIVE AGENT:	WELLS FARGO SECURITIES, LLC
	 	 
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	 
	THE INSTITUTIONAL LENDER:	WELLS FARGO BANK, N.A.
	 	 
	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 
	 	 
	 	 

 

    	S-2Exhibit 10.1

 

*** Represents material that has been omitted and will be
filed separately with the Securities and Exchange Commission pursuant to a request for confidential treatment under Rule 24b-2
of the Securities and Exchange Act of 1934, as amended.

 

 

TRADEMARK CO-OWNERSHIP AGREEMENT

 

This TRADEMARK CO-OWNERSHIP AGREEMENT ("Agreement"),
dated October 29, 2013 (the "Effective Date"), is made by and between H.D.D., LLC, a California limited liability
company ("HDD") and Daryl R. Groom, an individual residing in Healdsburg, CA ("Groom").

 

RECITALS

 

		A.	Groom is the owner of the colby red trademark (the "Trademark")
for use in connection with wine. Registration of the Trademark on the U.S. Principal Register issued on November 1, 2011 and been
assigned Registration No. 4,050,621 (the "Registration").

 

		B.	Groom has been selling wine under the Trademark, both individually and with the assistance of third parties, since 2010.

 

		C.	Groom desires to identify a co-owner of the Trademark who will become primarily responsible for the production, packaging,
marketing, distribution, export and sale of wine sold under the Trademark.

 

		D.	HDD is interested in becoming a co-owner of the Trademark on the terms and conditions of this Agreement.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the foregoing,
and for other good and valuable consideration, the receipt and adequacy of which is hereby acknowledged, the parties hereto agree
as follows:

 

1.Definitions.

 

(a)Wine Product. "Wine
Product" means wine packaged, distributed or sold under the Trademark.

 

(b)Case. "Case"
means 9 liters of Wine Product packaged for sale to consumers (e.g. 12 750ml bottles or 6 1.5L bottles).

 

(c)Case Sold. "Case Sold"
means a Case of Wine Product distributed to a third party and for which HDD has actually received Gross Revenue. The parties understand
and agree Promotional Product (as defined below) is excluded from the calculation of the number of Cases Sold.

 

    	

    	 

    

 

 

(d)Trademark Assets. "
Trademark Assets" means all right, title, and interest in and to (i) the Trademark and any pending applications, registrations,
domain names, trade dress, label designs (including any artwork, the copyrights therein and the goodwill associated therewith),
bottle designs, and other designs used solely in connection with Wine Product, (ii) all written formulae, recipes, and blending
procedures and instructions and manufacturing know-how and other know-how used in the production of Wine Product, (iii) any copyrights
used solely in the marketing, distribution and sale of Wine Product, (iv) all of the advertising campaigns and layouts, designs
for point of sale materials (including any artwork, the copyrights therein and the goodwill associated therewith) used solely on
Wine Product, and (v) the goodwill associated with all of the foregoing and all rights of recovery for past infringement thereof.

 

(e)Trademark Asset Valuation. "Trademark
Asset Valuation" means the value of the Trademark Assets as calculated using the methodology set forth in Exhibit B to
this Agreement.

 

(f)Work Product. "Work
Product" means all work product designed, developed, conceived or reduced to practice in connection with the Trademark
Assets. Work Product includes, without limitation, marketing and promotional materials.

 

(g)Event of Bankruptcy. "Event
of Bankruptcy" means any of the following circumstances: (i) the party becomes insolvent, or a petition in bankruptcy
or for reorganization is filed by or against him or it, or any insolvency proceedings are instituted by or against him or it or
(ii) the party makes an assignment for the benefit of his or its creditors, is placed in the hands of a receiver, or liquidates
his or its business.

 

2.Co-ownership of Trademark Assets.
Groom hereby irrevocably (except for the Groom Termination Right (as defined below)) assigns and transfers to HDD an undivided
one-half (50%) ownership in all right, title and interest he has, or may acquire, in and to the Trademark Assets including, without
limitation, the Trademark. On or before the execution of this Agreement, Groom must execute, notarize and deliver to HDD a Trademark
Assets Assignment in the form attached to this Agreement as Exhibit A.

 

3.Wine Product Responsibilities.

 

(a)Production, Distribution and Sale.

 

(1)HDD must use commercially reasonable
efforts to produce, package, market, distribute, export and sell Wine Product. HDD has sole discretion in defining the marketing,
distribution, export and sale of the Wine Product; except, however, that changes in price are subject to Groom's prior consent
such consent not to be unreasonably withheld or delayed.

 

(2)Without limiting HDD's rights and
responsibilities set forth in Section 3(a)(1) above, Groom agrees to provide winemaker services consistent with industry standards
in connection with the production of the Wine Product. As winemaker, Groom has primary responsibility for the production of the
wine (the "Production Process") including, without limitation, selection of varietals, sourcing of materials,
production methodology, blending and overall quality control. The Production Process is subject to the approval of HDD such approval
not to be unreasonably withheld or delayed.

 

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(3)This Agreement sets forth each party's
exclusive right and obligation to produce, package, market, distribute, export or sell Wine Product.

 

(4)On the request of HDD, Groom agrees
to support HDD with the following activities related to the Trademark: brand development, package and design, promotional plans,
brand positioning, pricing and promotion coordination with sales (the "Support Activities"). Groom is solely responsible
for his costs associated with the Support Activities including, without limitation, travel and lodging.

 

(5)On the request of HDD, Groom agrees
to use his best efforts to have his wife, Lisa Groom ("Lisa"), and his son, Colby Groom ("Colby"),
assist with, and participate in, the Support Activities. Groom understands and agrees that the sole monetary compensation under
this Agreement is the Groom Revenue and the Charitable Allocation (as defined below) and that Lisa and Colby will not receive additional
compensation for the Support Activities. Groom further understands and agrees that the participation of Colby and Lisa in the Support
Activities is a material provision of this Agreement.

 

(b)Maintenance Of Trademark Registrations.
HDD agrees to use commercially reasonable efforts to maintain in good standing the registrations of the Trademark in the United
States and in any other jurisdictions where the Trademark is accepted for registration.

 

4.Compensation.

 

(a)Compensation to Groom. HDD agrees
to pay Groom as follows:

 

(1)HDD shall pay Groom $*** per Case
Sold (the "Groom Revenue") and Groom shall allocate $*** per Case of the Groom Revenue to charity.

 

(2)HDD shall allocate an additional
$*** per Case Sold for distribution to charitable causes for a total of $*** per case for charity (the "Charitable Allocation").

 

(3)Except for the Groom Revenue and
the Charitable Allocation, HDD retains all revenue received from the sale of Wine Product.

 

(b)Payment of Groom Revenue. The
Groom Revenue is calculated on a quarterly basis. HDD shall pay the Groom Revenue within thirty (30) days following the end of
each quarter. Payment of the Groom Revenue shall be preceded or accompanied by a report delivered to Groom setting forth in reasonable
detail the Case sales on which such Groom Revenue is based, as well as other information reasonably requested by Groom for the
purpose of reconciling and monitoring amounts of the Groom Revenue payable under this Agreement.

 

5.Charitable Distributions.

 

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(a)Groom has the right to allocate the
Charitable Allocation to one or more recipients (each a "Donee"). Groom will direct and allocate the Charitable
Allocation subject to HDD's consent, such consent not to be unreasonably withheld or delayed.

 

(b)The Charitable Allocation is calculated
on a quarterly basis. HDD shall make the accrued Charitable Allocation available for distribution within thirty (30) days following
the end of each quarter. HDD agrees to promptly comply with the written instructions from Groom as to how the Charitable Allocation,
or any portion thereof, should be distributed to a Donee.

 

(c)Each Donee must meet the following
criteria:

 

(1)The Donee must meet all federal and
state statutory and regulatory requirements for a tax deductible contribution.

 

(2)A contribution to the Donee must
not damage or undermine, in any manner, either party's personal or professional reputation and their respective goodwill nor damage
or undermine, in any manner, the personal or professional reputation of any of their respective officers, directors, members, shareholders
and employees.

 

(d)Any Charitable Allocation that has
not been distributed within a tax year for HDD carries over to successive years and remains available for distribution as provide
in this Section 5.

 

(e)For charitable and promotional purposes,
HDD may distribute a commercially reasonable quantity of Wine Product to third parties without charge or at a reduced cost (the
"Promotional Product").

 

(f)HDD agrees to make available to Groom
a maximum of 50 Cases per year for charitable giving. HDD also agrees to produce approximately 30 3L bottles per year and make
such large format bottles available to Groom for charitable giving. Such Cases and large format bottles are deemed to be Promotional
Product under this Agreement.

 

6.Records; Audit Rights.

 

(a)For each quarter of the Term, HDD agrees
to maintain for three (3) years, at its principal office, complete and accurate records and books of account with respect to its
activities under this Agreement.

 

(b)On the request of Groom, and on a minimum
of fifteen (15) business days prior written notice, HDD agrees to provide Groom, and his representatives, access during normal
business hours to such records necessary to verify compliance with this Agreement and the accuracy of any payment of the Groom
Income. If HDD has failed to pay any amount owing to Groom, HDD must promptly pay the amount past due. If the shortfall for any
payment of the Groom Revenue is more than $*** or *** percent (***%) of the amount owed for such period, whichever amount is greater,
HDD shall pay to Groom all reasonable costs incurred in connection with the audit for the applicable time period.

 

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7.Work Product. All elements
of Groom's Work Product are co-owned by HDD and Groom. Groom hereby assigns, and on the creation of each element of his Work Product
does automatically assign, to HDD, its successors and assigns, a one-half (50%) undivided interest of all United States and international
copyrights and all other intellectual property rights throughout the world in each element of the Work Product.

 

8.Notification of Adverse Uses of
the Trademark.

 

(a)Each party agrees to promptly notify
the other party in writing on first becoming aware of any adverse use or uses of the Trademark or any of the other Trademark Assets.
Each party agrees to take no other action of any kind without first obtaining the other party’s prior written consent.

 

(b)HDD and Groom must mutually agree on
any course of action, if any, against the adverse user.

 

(c)If HDD and Groom agree to initiate
any legal proceedings on account of such infringement, HDD and Groom each agree to cooperate to the extent reasonably necessary
to protect the Trademark and the other Trademark Assets including without limitation, being joined as a necessary or desirable
party to such proceeding.

 

(d)Unless otherwise agreed in a writing
signed by both parties, HDD and Groom are each responsible for one-half (50%) of all costs and fees incurred in protecting the
Trademark and the other Trademark Assets. In the event HDD advances any costs or fees on behalf of Groom, HDD has the right to
offset such costs and fees due to HDD against the Groom Revenue and Groom's portion of the Charitable Allocation.

 

9.Third Party Claims.

 

(a)HDD and Groom must mutually agree on
any course of action if claims or suits are made by a third party asserting that the use of any of the Trademark or any of the
other Trademark Assets infringe the rights of such third party, or if either party learns that a third party has, or claims to
have, rights that would or might conflict with HDD’s use of the Trademark or any of the other Trademark Assets.

 

(b)Neither party has the right, without
the other party's prior written consent, to acknowledge the validity of the claim of a third party, to obtain or seek a license
from a third party, or to take any other action that might impair the ability of either party to contest the claim of a third party.

 

(c)Each party agrees to cooperate to the
extent reasonably necessary to protect the Trademark or any of the other Trademark Assets, or to reduce any damages that may arise
from the third party claim.

 

(d)Unless otherwise agreed in a writing
signed by both parties, HDD and Groom are each responsible for one-half (50%) of all costs and fees incurred in defending the Trademark
and the other Trademark Assets. In the event HDD advances any costs or fees on behalf of Groom, HDD has the right to offset such
costs and fees due to HDD against the Groom Revenue and Groom's portion of the Charitable Allocation.

 

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10.Confidential Information.

 

(a)Definition. For the purposes
of this Agreement, “Confidential Information” means (i) the existence and terms and conditions of this Agreement, (ii)
all business, financial, technical and other information arising from the production, packaging, marketing, distribution, export
and sale Wine Product and any other business information arising from or related to the Trademark, (iii) all information about
the disclosing party’s business or activities that is proprietary and confidential (including information from or about vendors
or suppliers). Confidential Information includes, without limitation, all business, financial, technical and other information
of a party marked or designated by such party as “confidential” or “proprietary” at the time of disclosure
or which a reasonable person would recognize as confidential or proprietary under the circumstances of disclosure.

 

(b)Exclusions. Confidential Information
does not include the following information: (i) is in or enters the public domain without breach of this Agreement, (ii) is lawfully
received by the receiving party from a third party without restriction on disclosure and without breach of a nondisclosure obligation,
(iii) is rightfully known by the receiving party prior to receipt from the disclosing party or (iv) is developed by the receiving
party independently of any information originating from the disclosing party.

 

(c)Confidential Information Restrictions.
Each party agrees (i) not to disclose to any third party, or use any Confidential Information disclosed by the other party, except
as expressly permitted in this Agreement and (ii) that such party will take all reasonable measures to maintain the confidentiality
of all Confidential Information of the other party in his or its possession or control, which will in no event be less than the
measures used to maintain the confidentiality of their own information of similar importance.

 

(d)Limitations. Notwithstanding
the foregoing restrictions on use and disclosure of Confidential Information, each party may disclose Confidential Information
(i) to the extent required by a court of competent jurisdiction or other governmental authority to which the party is subject,
or otherwise as required by law, provided that the disclosing party uses reasonable efforts to request confidential treatment of
the disclosed information or a protective order before such disclosure; or (ii) on a “need-to-know” basis to legal
counsel, accountants and business consultants who are under an obligation of confidentiality no less restrictive than as set forth
in this Section 10.

 

11.Representations.

 

(a)Representations by HDD. HDD
warrants and represents to Groom that the following statements are true and correct as of the Effective Date of this Agreement:

 

(1)Authority and Power. HDD has
full right, power, legal capacity and authority to execute, deliver and perform its obligations under this Agreement, and once
executed and delivered, this Agreement shall be valid and fully binding on HDD and enforceable in accordance with all its terms.

 

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(2)No Breach. The execution and
delivery by HDD of this Agreement does not, and the performance and the consummation of the transactions contemplated by this Agreement
will not, result in any conflict with, breach or violation of, default, termination, or acceleration of the time of performance
of any obligation, forfeiture or event, or creation of any lien, claim, interest, encumbrance, or other right under (or upon the
giving of notice or the lapse of time, or both, will result in any conflict with, breach or violation of, default, termination
or acceleration of the time of performance of any obligation, forfeiture or event or creation of any lien, claim, interest, encumbrance
or other right under) any terms or provisions of any statute, rule, regulation, judicial or governmental decree, order or judgment,
mortgage, deed of trust, indenture, agreement or other instrument to which HDD is a party or by which HDD is bound.

 

(b)Representations By Groom. Groom
represents and warrants to HDD that the following statements are true and correct:

 

(1)Authority and Power. Groom
has the full right, power, legal capacity and authority to execute, deliver and perform his obligations under this Agreement, and
once executed and delivered, this Agreement shall be valid and fully binding on Groom and enforceable in accordance with all its
terms.

 

(2)No Breach. The execution and
delivery by Groom of this Agreement does not, and the performance and the consummation of the transactions contemplated by this
Agreement will not, result in any conflict with, breach or violation of, default, termination, or acceleration of the time of performance
of any obligation, forfeiture or event, or creation of any lien, claim, interest, encumbrance, or other right under (or upon the
giving of notice or the lapse of time, or both, will result in any conflict with, breach or violation or, default, termination
or acceleration of the time of performance of any obligation, forfeiture or event or creation of any lien, claim interest, encumbrance
or other right under) any terms or provisions of any mortgage, deed of trust, indenture, agreement or other instrument to which
Groom is a party or by which Groom is bound.

 

(3)Title to Trademark Assets.
Groom has good and marketable title to the Trademark Assets. On execution of this Agreement, HDD will acquire good and marketable
title to the Trademark, free and clear of any and all claims, liens, charges, security interests, or encumbrances of any and all
kind.

 

(4)Infringement. Groom does not
have any knowledge of any infringement or alleged infringement by others of the Trademark. Groom has not infringed, and is not
now infringing, on any intellectual property rights belonging to any other person, firm, or corporation and related to the Trademark.
Groom is not a party to any license, agreement, or arrangement, whether as licensor, licensee, franchisor, franchisee, or otherwise,
with respect to any of the Trademark.

 

12.Transfer of Trademark Assets.

 

(a)Restriction on Transfers. Groom
must obtain the prior written consent of HDD to sell, assign, pledge, encumber, hypothecate, or in any other manner transfer his
or its ownership interest in the Trademark Assets, or any portion thereof, whether voluntarily or by operation of law (a "Transfer").
Any Transfer (or purported Transfer) without such prior written consent is null and void.

 

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(b)HDD Right of Sale. Beginning
on the third anniversary of the Effective Date and continuing thereafter, HDD has the right, in its sole discretion, to sell all
or substantially all of its ownership interest in the Trademark Assets subject to the following procedure:

 

(1)First Right of Purchase. Groom
has the first right to purchase HDD's ownership interest in the Trademark Assets.

 

(2)Sale to Independent Party.
If HDD and Groom are unable to agree on purchase terms within twenty one (21) days after beginning negotiations, HDD has the right
to sell its ownership interest in the Trademark Assets to an independent third party in an arms-length transaction (an "Independent
Purchaser").

 

(A)Sale Notice. If HDD receives
a bona fide offer from an Independent Purchaser to purchase all or a substantial portion of HDD's interests in the Trademark Assets
which HDD intends to accept, HDD shall give prompt written notice thereof to Groom (the "Sale Notice"). The Sale
Notice shall describe in reasonable detail the terms of the proposed sale including, without limitation, the consideration to be
paid and the name and address of the prospective purchaser. The Independent Purchaser is subject to the prior approval of Groom
such approval not to be unreasonably withheld or delayed. A qualified wine company is deemed to be an acceptable Independent Purchaser
for the purposes of this Agreement.

 

(B)Agreement Runs with the Assets.
Until terminated, this Agreement shall run with the Trademark Assets; the Independent Purchaser must purchase the Trademark Assets
subject to the terms and conditions of this Agreement.

 

(C)Right of First Refusal. Groom
has the right of first refusal to purchase the Trademark Assets from HDD until the date that is twenty one (21) days after delivery
of the Sale Notice (the "Rights Period"). Groom shall have the right, but not the obligation, to purchase the
applicable Trademark Assets on the same terms and conditions as the pending bona fide offer by delivering written notice thereof
to HDD.

 

13.Term. This Agreement commences
on the Effective Date and continue in effect until terminated as provide in this Agreement ("Term").

 

14.Termination.

 

(a)Groom Right of Termination for Cause.

 

(1)Groom has the right to terminate
this Agreement, by providing thirty (30) days prior written notice to HDD, on the occurrence of one of the following ("Groom's
Termination Right"):

 

    	8

    	 

    

 

 

(A)The number of Cases Sold in the first
year of this Agreement is less than *** Cases; or

 

(B)The number of Cases Sold in the second
year of this Agreement is less than *** Cases.

 

(C)The number of Cases Sold in the third
year of this Agreement, or any year thereafter, is less than *** Cases.

 

(2)Groom must exercise Groom's Termination
Right by sending the required notice within sixty (60) days of the end of the applicable year.

 

(b)Termination by HDD for Cause.
HDD has the right to terminate this Agreement in the event of a material breach of this Agreement by Groom, provided HDD gives
written notice to Groom identifying details of the nature of the breach. On receipt of the written notice, Groom then has thirty
(30) days to cure the breach. If the breach is not cured within the specified period, HDD may terminate this Agreement on written
notice to Groom. Termination is effective on receipt of such written notice.

 

(c)HDD Right of Immediate Termination.
HDD has the right to immediately terminate this Agreement, by providing written notice to Groom, on the occurrence of one or more
of the following:

 

(1)Loss of rights or exclusivity to
the Trademark, or any portion thereof;

 

(2)HDD and Groom (including their respective
successors and assigns) cease being co-owners of the Trademark;

 

(3)On an Event of Bankruptcy by Groom;

 

(4)The death or incapacity, either physical
or mental, of Groom; or

 

15.Effect of Termination.

 

(a)Effect of Termination by Groom.
If this Agreement terminates based on Groom exercising Groom's Termination Right:

 

(1)All Trademark Assets revert back
to Groom. HDD agrees to promptly execute an assignment, in a form reasonably agreeable to both Groom and HDD, transferring all
such Trademark Assets to Groom.

 

(2)Groom shall purchase all of HDD's
then current Wine Product inventory and all wine in production and previously designated for use as Wine Product. The purchase
price for such wine inventory is HDD's cost of production and must be paid within 60 days of the date of termination.

 

    	9

    	 

    

 

 

(b)Effect of Other Termination Events.
Except for termination based on Groom's Termination Right, the following applies to the termination of this Agreement (but only
on termination of the Agreement and only when such termination is not based on Groom's Termination Right):

 

(1)Groom Purchase Right. Groom
has the right, but not the obligation, to purchase HDD's ownership interest in the Trademark Assets ("Groom Option")
exercisable by delivering written notice thereof to HDD or its successors or assigns within 10 days of receiving notice of termination
under Section 14. The purchase price paid to HDD by Groom shall be HDD's portion of the Trademark Asset Valuation based on its
then current ownership percentage in the Trademark Assets.

 

(2)HDD Purchase Right. If Groom
does not exercise the Groom Option, HDD has the right, but not the obligation, to purchase Groom's ownership interest in the Trademark
Assets ("HDD Option") exercisable by delivering written notice thereof to Groom or his successors, heirs, legal
representatives or assigns within 10 days of the expiration of the Groom Option. The purchase price paid to Groom by HDD shall
be Groom's portion of the Trademark Asset Valuation based on his then current ownership percentage in the Trademark Assets.

 

(3)Abandonment of Trademark.
If HDD does not exercise the HDD Option and Groom does not exercise the Groom Option, the parties mutually agree that the Trademark
is abandoned and neither party shall use the Trademark, or any confusingly similar variation thereof, for a minimum of three years
following the termination date of this Agreement.

 

(4)Cease Operations. If HDD does
not exercise the HDD Option, it has the right to immediately cease all activities arising from or related to producing, packaging,
marketing, distributing, exporting and selling Wine Product. HDD has the right to sell off, in any commercially reasonable manner,
all inventory of Wine Product as of the termination date.

 

16.Limited Relationship.

 

(a)Groom is an independent contractor.
This Agreement is not, and shall not be construed to be, an agreement for an agency, partnership or joint venture.

 

(b)Groom does not have the right or authority
to (i) make any representation that asserts or suggest the existence of an employer-employee relationship with HDD, (ii) act in
any way to bind HDD to any obligation to a third party, or (iii) assume or create in writing or otherwise any obligation of any
kind, express or implied, in the name of or on behalf of HDD unless specifically authorized to do so in writing by HDD and in accordance
with the conditions specified by HDD.

 

(c)Groom will not be treated as an employee
for state or federal tax purposes with respect to any services rendered under this Agreement. HDD shall, to the extent it is legally
required to do so, file all necessary tax information and reports with federal, state, and local taxing authorities, including
the Internal Revenue Service form 1099, to report all income of Groom arising under this Agreement. Groom represents and warrants
that he will report all income earned pursuant to this Agreement and pay all federal, state and local self-employment taxes and
other assessments required to be paid under law.

 

    	10

    	 

    

 

 

17.Miscellaneous Provisions.

 

(a)Notices. Unless otherwise stated,
all notices required under this Agreement shall be in writing and shall be considered given (i) when delivered personally, (ii)
two (2) business day after dispatch, when sent via a commercial overnight carrier, fees prepaid, or (iii) on delivery when sent
by facsimile transmission confirmed by a transmission report generated by the transmitting machine. All such notices will be addressed
as follows:

 

If to HDD:

 

H.D.D., LLC

Attn: Phil Hurst

4035 Westside Road

Healdsburg, CA 95448

 

If to Groom:

 

Daryl Groom

2111 Mill Creek Road

Healdsburg, CA 95448

 

or to such other address or facsimile number as from time to
time may be given in the manner permitted above.

 

(b)Entire Agreement Modification and
Waiver. This Agreement contains the entire agreement among the parties hereto and supersedes any and all prior agreements,
arrangements or understandings between the parties relating to the subject matter hereof. There are no representations, warranties,
covenants, promises, inducements, statements, agreements, arrangements, or understandings, oral or written, express or implied,
between the parties hereto relating to the subject matter set forth herein which have not been fully expressed herein. No variation
or modification of this Agreement shall be made except in writing signed by both parties. No waiver of any of the provisions and
conditions hereof, or granting of any consent contemplated hereby, shall be valid unless in writing and signed by the party against
whom enforcement of any such variation, modification, waiver or consent is sought. Waiver of any default or breach of this Agreement
or of any warranty, representation, covenant or obligation contained herein shall not be construed as a waiver of any prior, concurrent
or subsequent default or breach. The waiver by one party of the performance of any convent, condition or promise shall not invalidate
this Agreement nor shall it be considered to be a waiver by such party of any other covenant, condition or promise hereunder. The
waiver by one party of the time for performing any act shall not constitute a waiver of the time for performing any other act or
any identical act required to be performed at a later time by the other party.

 

(c)Assignment; Delegation; Binding
Effect. HDD’s rights under this Agreement are assignable, and its duties may be delegated. Because HDD has entered into
this Agreement based on the unique talents and capabilities of Groom, Groom’s rights under this Agreement are not assignable
nor may Groom delegate his duties without the prior written consent of HDD. Any attempt by Groom to assign, transfer or delegate
this Agreement is null and void. Without limiting the restrictions set forth in this paragraph, this Agreement is binding on and
inures to the benefit of the parties hereto, their respective heirs, executors, administrators, legal representatives, successors
and assigns.

 

    	11

    	 

    

 

 

(d)Construction. This Agreement
shall be construed as a whole in accordance with its fair meaning, the captions being for the convenience of the parties only and
not intended to describe or define the provisions in the portions of the Agreement to which they pertain.

 

(e)Severability. If a court of
competent jurisdiction finds any provision of this Agreement invalid or unenforceable as applied to any circumstance, the remainder
of this Agreement and the application of such provision to other persons or circumstances shall be interpreted so as best to effect
the intent of the parties hereto. The parties further agree to replace any such void or unenforceable provision of this Agreement
with a valid and enforceable provision that will achieve, to the extent possible, the economic, business, and other purposes of
the void or unenforceable provision.

 

(f)Remedies. Except as specifically
provided herein, no right of remedy made available to any party hereunder is intended to be exclusive of any other right or remedy
otherwise available to such party whether at law or in equity, and each and every right and remedy shall be cumulative and in addition
to every other right or remedy otherwise available.

 

(g)Successors and Assigns. This
Agreement shall be binding on and inure to the benefit of the parties hereto, and their respective successors and assigns.

 

(h)Further Assurances. From time
to time, at a party’s request and without further consideration, the other party to this Agreement shall execute and deliver
any further instrument(s) and take such other actions as a party may reasonable require to complete more effectively the transactions
contemplated under this Agreement and to carry out the terms and provisions of this Agreement.

 

(i)Survival. All of the terms and
provisions of this Agreement intended to be observed and performed by the parties after the termination hereof, shall survive such
termination and shall continue thereafter in full force and effect, subject to applicable statutes of limitations, including, without
limitation, Sections 1, 10, 15, 16 and 17.

 

(j)Legal Representation. Each of
the parties acknowledge that the law firm of Spaulding McCullough & Tansil LLP has prepared this Agreement and solely represents
the interests of HDD. Groom each acknowledge that he has the right to seek independent legal and tax counsel concerning the terms
and provisions of this Agreement.

 

(k)Counterparts. This Agreement
may be executed in one or more counterparts each of which shall be deemed to be an original and all of which together shall constitute
one and the same instrument. The delivery of a party's signature by PDF file or facsimile is sufficient to bind that party.

 

(l)Governing Law; Venue. This Agreement
is governed by the laws of the State of California, without reference to conflict of laws principles. All disputes arising out
of this Agreement are subject to the exclusive jurisdiction and venue of the California state courts located in Sonoma County,
California or the United States District Court for the Northern District of California.

 

 

[SIGNATURE PAGE FOLLOWS]

 

    	12

    	 

    

 

IN WITNESS WHEREOF, the parties have executed
this Trademark Co-Ownership Agreement as of the date first set forth above.

 

	 	COMPANY:
	 	 
	 	H.D.D. LLC,
	 	a California limited liability company
	 	 
	 	By: 	
	 	 	Phillip
    L. Hurst, Manager

 

	 	Groom:
	 	 
	 	 	 
	 	 
	 	Daryl R. Groom
	 	 	 
	 	 	 
	 	 	 

 

Exhibits:

A – Assignment

B – Valuation of Trademark Assets

C – Rights of Publicity Agreement

 

 

    	13

    	 

    

 

EXHIBIT A

 

ASSIGNMENT OF TRADEMARKS

 

This Assignment of Trademarks ("Assignment"),
dated October __, 2013, is made by Daryl Rex Groom ("Assignor") in favor of H.D.D., LLC, a California limited
liability company ("HDD").

 

Assignor and HDD have entered into that
certain Trademark Co-ownership Agreement of even date with this Assignment. Unless defined in this Agreement, all capitalized terms
have the meeting set forth in the Trademark Co-ownership Agreement.

 

For good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, Assignor does hereby assign and transfer to HDD an undivided one-half
(50%) ownership in all right, title and interest he has, or may acquire, in and to the trademarks and/or service marks listed in
Annex A attached hereto (collectively, the "Marks"), together with the on-going business to which the Marks
pertain, all of the goodwill associated with and symbolized by such Marks, the registrations thereof and therefor, and any rights
of Assignor to sue any third parties for any past infringement of or to the Marks, for the use and benefit of HDD and to prosecute
such registrations in the United States Patent and Trademark Office and throughout the world.

 

This Assignment is binding on Assignor and
his successors, heirs, legal representatives and assigns, and inures to the benefit of HDD and its successors and assigns.

 

IN WITNESS WHEREOF, intending to be legally
bound hereby, the undersigned have duly executed this Assignment of Trademarks.

 

	 	ASSIGNOR:
	 	 
	 	
	 	Daryl R. Groom
	 	 	

 

 

[NOTARY
ACKNOWLEDGMENT PAGE FOLLOWS]

 

    	14

    	 

    

 

ACKNOWLEDGMENT

 

 

[insert notary acknowledgment]

 

    	15

    	 

    

 

ANNEX A

 

 

List of Marks

 

	U.S. Trademark	Registration No.	Registration Date
	 	 	 
	COLBY RED	4,050,621	11/01/2011

 

 

    	16

    	 

    

 

EXHIBIT B

 

Valuation of the Trademark Assets

 

1.Mutual Agreement. HDD and Groom
shall use their respective best efforts to mutually agree upon the fair market value of the Trademark Assets.

 

2.Appraisal. If Groom and HDD
are unable to mutually agree on the fair market value of the Trademark Assets, either party may elect, at any time and in their
sole discretion, to have the fair market value of the Trademark Assets determined by independent appraisal in accordance with the
following procedures:

 

(a)Notice. The party electing to
have an independent appraisal performed shall exercise the right by giving written notice to the other party as set forth in Section
17(a) of the Agreement. The date the notice is given to the other party is the "Appraisal Trigger Date."

 

(b)Selection.

 

(1)Groom and HDD shall jointly select
one (1) appraiser with at least seven (7) years of experience appraising assets similar to the Trademark Assets (a "Qualified
Appraiser") to serve as an appraiser for purposes of determining the fair market value of Trademark Assets (a "Designated
Appraiser").

 

(2)If Groom and HDD fail to jointly
select a Qualified Appraiser within fourteen (14) days after the Appraisal Trigger Date, HDD's President shall select a Qualified
Appraiser to serve as the first Designated Appraiser. If HDD's President fails to select a Qualified Appraiser within twenty-one
(21) days after the Appraisal Trigger Date, Groom shall select a Qualified Appraiser to serve as the first Designated Appraiser
within thirty (30) days after the Appraisal Trigger Date.

 

(c)First Appraisal. The first Designated
Appraiser shall, within thirty (30) days after designation, deliver to Groom and HDD a written report describing in reasonable
detail its determination of the fair market value of Trademark Assets (the "First Appraisal"). Each party has
seven (7) days after delivery of the First Appraisal to object to the First Appraisal, by delivery of a written notice of objection
to the other party describing in reasonable detail the grounds for objection (the "First Objection Notice"). If
neither party objects to the First Appraisal within the designated time, or a party does deliver a First Objection Notice but fails
to select a second Designated Appraiser within the time period described in Section 2(d) of this Exhibit, the First Appraisal shall
be deemed to be accepted by both parties and shall serve as the Trademark Assets Valuation for the purposes of the Agreement. Regardless
of whether or not the First Appraisal is accepted, each of Groom and HDD shall pay one-half (1/2) of the fees charged by the first
Designated Appraiser plus one-half (1/2) of all other costs relating to the determination of the Trademark Assets Valuation.

 

    	17

    	 

    

 

 

(d)Second Appraisal. If either
Groom or HDD objects to the First Appraisal within the time period described in Section 2(c) of this Exhibit B, the objecting party
shall, within ten (10) days after delivery of the First Objection Notice, designate a second Qualified Appraiser to serve as the
second Designated Appraiser. Such second Designated Appraiser shall, within thirty (30) days after designation, deliver to Groom
and HDD a written report describing in reasonable detail its determination of the fair market value of Trademark Assets (the "Second
Appraisal"). Either party has seven (7) days after delivery of the Second Appraisal to object to the Second Appraisal,
by delivery of a written notice of objection to the other party describing in reasonable detail the grounds for objection (the
"Second Objection Notice"). If neither party objects to the Second Appraisal within the designated time, or a
party does deliver a Second Objection Notice but fails to select a third Designated Appraiser within the time period described
in Section 2(e) of this Exhibit, the Second Appraisal shall be deemed to be accepted by both parties and shall serve as the Trademark
Assets Valuation for the purposes of the Agreement. Regardless of whether or not the Second Appraisal is accepted, the party who
objected to the First Appraisal shall pay all of the fees charged by the second Designated Appraiser and all other cost related
to the Second Appraisal.

 

(e)Third Appraisal. If either Groom
or HDD objects to the Second Appraisal within the time period described in Section 2(d) of this Exhibit, the objecting party shall,
within ten (10) days after delivery of the Second Objection Notice, designate a third Qualified Appraiser to serve as the third
Designated Appraiser. Such third Designated Appraiser shall, within fourteen (14) days after designation, deliver to Groom and
HDD a written report describing in reasonable detail its determination of the fair market value of the Trademark Assets by reference
to the information contained in the First Appraisal and the Second Appraisal only and not by conducting an independent appraisal
(the "Third Appraisal"). The fair market value of Trademark Assets for purposes of determining the Trademark Assets
Valuation shall then be determined by disregarding the appraisal that diverges the greatest from each of the other two appraisals,
and taking the arithmetic mean of the remaining two appraisals. The party who objected to the Second Appraisal shall pay all of
the fees charged by the third Designated Appraiser and all other cost related to such third appraisal.

 

    	18

    	 

    

 

EXHIBIT C

 

Rights of Publicity Agreement

 

    	19

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