Document:

exhibit10a.htm

Exhibit 10(a)

 

NINTH AMENDMENT TO CREDIT AGREEMENT

 

This Ninth Amendment to Credit Agreement (this “Ninth Amendment”) is entered into as of November 2, 2012 (the “Ninth Amendment Effective Date”), by and among Denbury Resources Inc., a Delaware corporation (“Borrower”), JPMorgan Chase Bank, N.A., as Administrative Agent (“Administrative Agent”), and the financial institutions parties hereto as Banks (hereinafter collectively referred to as “Executing Banks”, and each individually, an “Executing Bank”).

 

W I T N E S S E T H

 

 WHEREAS, Borrower, Administrative Agent, the other agents party thereto and Banks are parties to that certain Credit Agreement dated as of March 9, 2010 (the “Credit Agreement”) (unless otherwise defined herein, all terms used herein with their initial letter capitalized shall have the meaning given such terms in the Credit Agreement, including, to the extent applicable, after giving effect to the amendments set forth in Section 1 of this Ninth Amendment);

 

 WHEREAS, pursuant to the Credit Agreement, Banks have made a Revolving Loan to Borrower and provided certain other credit accommodations to Borrower;

 

WHEREAS, Borrower has advised Administrative Agent and Banks that pursuant to that certain Exchange Agreement dated as of September 19, 2012 by and among Onshore, XTO Energy Inc. (“XTO Energy”) and Exxon Mobil Corporation (collectively, with XTO Energy, “XTO”), Onshore has agreed to transfer certain of its Mineral Interests located in the oil and gas field commonly referred to as the Bakken Shale (and defined as the “DRI Assets” in such Exchange Agreement) to XTO in exchange for certain Mineral Interests and cash consideration (such transaction, the “Bakken Exchange”);

 

WHEREAS, Borrower has further advised Administrative Agent and Banks that the loss of oil production as a result of the Bakken Exchange may cause the Credit Parties to have (a) hedged more than 100% of the reasonably anticipated projected production from Proved Mineral Interests of oil which would be prohibited by Section 9.11(a)(i) of the Credit Agreement, and (b) total production of oil that is less than the aggregate amount of oil which is the subject of Oil and Gas Hedge Transactions which would be prohibited by Section 9.11(b)(i) of the Credit Agreement (collectively, the “Temporary Potential Oil Hedging Noncompliance”), in each case during the period commencing on the effective date of the Bakken Exchange and continuing through and including December 31, 2013 (such period, the “Specified Period”), which Temporary Potential Oil Hedging Noncompliance would also be prohibited by Section 9.17 of the Credit Agreement;

 

WHEREAS, Borrower has requested that Banks (a) amend certain terms of the Credit Agreement to (i) permit the Bakken Exchange and (ii) make certain other changes thereto as more specifically described herein, and (b) provide a limited waiver of any Temporary Potential Oil Hedging Noncompliance that may occur during the Specified Period; and

 

 WHEREAS, subject to and upon the terms and conditions set forth herein, Executing Banks have agreed to Borrower’s requests and to enter into this Ninth Amendment;

 

 NOW THEREFORE, for and in consideration of the mutual covenants and agreements herein contained and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged and confessed, Borrower, Administrative Agent and Executing Banks hereby agree as follows:

 

Section 1. Amendments to Credit Agreement.  In reliance on the representations, warranties, covenants and agreements contained in this Ninth Amendment, and subject to the satisfaction or waiver of the conditions precedent set forth in Section 4 hereof, the Credit Agreement shall be amended effective as of the Ninth Amendment Effective Date in the manner provided in this Section 1.

 

1.1 Additional Definitions.  Section 1.1 of the Credit Agreement shall be amended to add thereto in alphabetical order the following definitions of “Bakken Assets”, “Bakken Exchange Agreement”, “Ninth Amendment” and “Ninth Amendment Effective Date”  which shall read in full as follows:

 

  

- 1 -

  

 

“Bakken Assets” means the “DRI Assets” as defined in and to be sold pursuant to the Bakken Exchange Agreement.

 

“Bakken Exchange Agreement” means that certain Exchange Agreement dated as of September 19, 2012, by and among Onshore, XTO Energy Inc. and Exxon Mobil Corporation, as amended, supplemented or modified from time to time to the extent permitted by Section 9.6.

 

“Ninth Amendment” means that certain Ninth Amendment to Credit Agreement dated as of November 2, 2012 among Borrower, Administrative Agent and Banks party thereto.

 

“Ninth Amendment Effective Date” means November 2, 2012.

 

1.2 Amendment to Definitions.  The definitions of “Authorized Officer” and “Loan Papers” contained in Section 1.1 of the Credit Agreement shall be amended and restated to read in full as follows:

 

“Authorized Officer” means, as to any Person, its Chief Executive Officer, its President, its Chief Financial Officer, its Chief Operating Officer, its General Counsel, its Chief Accounting Officer, any of its Vice Presidents, its Treasurer, its corporate Secretary or any of its Assistant Secretaries.

 

“Loan Papers” means this Agreement, the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Notes, each Facility Guarantee which may now or hereafter be executed, each Borrower Pledge Agreement which may now or hereafter be executed, each Subsidiary Pledge Agreement which may now or hereafter be executed, all Mortgages now or at any time hereafter delivered pursuant to Section 5.1, and all other certificates, documents or instruments delivered in connection with this Agreement, as the foregoing may be amended from time to time.

 

1.3 Amendment to Restricted Payments Provision.  Section 9.2(j) of the Credit Agreement shall be amended to delete the reference to “$500,000,000” contained therein and insert in lieu thereof a reference to “$1,200,000,000”.

 

1.4 Amendment to Asset Dispositions Provision.  Section 9.5 of the Credit Agreement shall be amended to (a) delete the word “and” at the end of clause (i), (b) replace the period at the end of clause (j) with “; and” and (c) add new clause (k) immediately after clause (j), to read in full as follows:

 

(k)           the sale of the Bakken Assets pursuant to the Bakken Exchange Agreement, provided, that:

 

(i)           no Default or Event of Default exists or would exist after giving effect to such sale;

 

(ii)           the Outstanding Credit at the time of such sale does not exceed the Borrowing Base at such time; and

 

(iii)           the sale of the Bakken Assets pursuant to the Bakken Exchange Agreement is consummated no later than the earlier of (A) the date on which the Scheduled Redetermination scheduled for on or about May 1, 2013 becomes effective or (B) the first date, if any, following the Ninth Amendment Effective Date on which a Special Redetermination requested by the Borrower becomes effective.

 

1.5 Amendment to Restricted Amendments Provision.  Section 9.6 of the Credit Agreement shall be amended to add the following sentence to the end thereof:

 

In addition, Borrower will not, nor will Borrower permit any other Credit Party to, enter into or permit any modification or amendment of the Bakken Exchange Agreement that would result in the addition of Borrowing Base Properties being sold pursuant thereto with a value, individually or in the aggregate, that is deemed material by the Administrative Agent in its reasonable discretion.

  

- 2 -

  

 

Section 2. Omnibus Amendment to Loan Papers.  Notwithstanding anything in any Loan Paper to the contrary, (a) in no event shall the defined terms “Collateral”, “Mortgaged Property” or any similar defined term describing any interest in any asset or property pledged by any Credit Party pursuant to the Loan Papers to secure the Obligations include any Building (as defined in the applicable Flood Insurance Regulations) or Manufactured (Mobile) Home (as defined in the applicable Flood Insurance Regulations) and (b) no Building or Manufactured (Mobile) Home shall be subject to any Lien created by any Loan Paper.  As used herein, “Flood Insurance Regulations” means (i) the National Flood Insurance Act of 1968 as now or hereafter in effect or any successor statute thereto, (ii) the Flood Disaster Protection Act of 1973 as now or hereafter in effect or any successor statute thereto, (iii) the National Flood Insurance Reform Act of 1994 (amending 42 USC § 4001, et seq.), as the same may be amended or recodified from time to time, and (iv) the Flood Insurance Reform Act of 2004 and any regulations promulgated thereunder.

 

Section 3. Limited Waiver.  In reliance on the representations, warranties, covenants and agreements contained in this Ninth Amendment, and subject to the satisfaction (or waiver) of the conditions precedent set forth in Section 4 hereof, Banks hereby consent to any Temporary Potential Oil Hedging Noncompliance during the Specified Period; provided, that Borrower will not, nor will Borrower permit any other Credit Party to, enter into any Hedge Transaction for oil during the Specified Period unless such Hedge Transaction, together with any other existing Hedge Transactions for oil, will not cause a violation of Sections 9.11 and 9.17 of the Credit Agreement.  Borrower acknowledges and agrees that the limited waiver set forth in this Section 3 is limited solely to Sections 9.11(a)(i), 9.11(b)(i) and 9.17 of the Credit Agreement and applies solely with respect to any Temporary Potential Oil Hedging Noncompliance which may occur during the Specified Period as a direct result of the loss of oil production from the Bakken Exchange.  The limited waiver set forth in this Section 3 is a limited, one-time waiver, and nothing contained herein shall obligate Administrative Agent or Banks to grant any additional or future waiver with respect to, or in connection with, any provisions of the Credit Agreement or any other Loan Paper.

 

Section 4. Conditions Precedent to Amendment.  Subject to the satisfaction (or waiver) of the following conditions, the amendments to the Credit Agreement contained in Section 1 hereof and the limited waiver provided in Section 3 hereof shall be effective on the Ninth Amendment Effective Date:

 

4.1 Counterparts.  Administrative Agent shall have received counterparts hereof duly executed by Borrower and Majority Banks and acknowledged by each Restricted Subsidiary (or, in the case of any party as to which an executed counterpart shall not have been received, telegraphic, electronic, telecopy, or other written confirmation from such party of execution of a counterpart hereof by such party).

 

4.2 Bakken Exchange Agreement.  Administrative Agent shall have received a copy of the Bakken Exchange Agreement, together with all attachments, exhibits and schedules thereto, certified by an Authorized Officer of Borrower as true, correct and complete as of the Ninth Amendment Effective Date.

 

4.3 No Default; No Borrowing Base Deficiency.  After giving effect to the amendments set forth in Section 1 and Section 2 hereof, no Default or Event of Default shall have occurred which is continuing, and no Borrowing Base Deficiency then exists.

 

4.4 Other Documents.  Administrative Agent shall have been provided with such documents, instruments and agreements, and Borrower shall have taken such actions, in each case as Administrative Agent may reasonably require in connection with this Ninth Amendment and the transactions contemplated hereby.

 

Section 5. Representations and Warranties.  To induce Executing Banks and Administrative Agent to enter into this Ninth Amendment, Borrower hereby represents and warrants to Banks and Administrative Agent as follows on the Ninth Amendment Effective Date:

 

5.1 Reaffirm Existing Representations and Warranties.  After giving effect to the amendments set forth in Section 1 and Section 2 hereof, each representation and warranty of Borrower contained in the Credit Agreement and the other Loan Papers is true and correct in all material respects on the Ninth Amendment Effective Date, except that any representation or warranty that is qualified by “material” or “Material Adverse Effect” references therein shall be true and correct in all respects.

 

  

- 3 -

  

 

5.2 Due Authorization; No Conflict.  The execution, delivery and performance by Borrower of this Ninth Amendment are within Borrower’s corporate or organizational powers, have been duly authorized by all necessary action, require no action by or in respect of, or filing with, any governmental body, agency or official and do not violate or constitute a default under any provision of applicable law or any Material Agreement binding upon Borrower or any other Credit Party or result in the creation or imposition of any Lien upon any of the assets of Borrower or any other Credit Party other than Liens securing the Obligations.

 

5.3 Validity and Enforceability.  This Ninth Amendment constitutes the valid and binding obligation of Borrower enforceable in accordance with its terms, except as (a) the enforceability thereof may be limited by bankruptcy, insolvency or similar laws affecting creditor’s rights generally, and (b) the availability of equitable remedies may be limited by equitable principles of general application.

 

5.4 No Defense.  Borrower acknowledges that Borrower has no defense to (a) Borrower’s obligation to pay the Obligations when due, or (b) the validity, enforceability or binding effect against Borrower of the Credit Agreement or any of the other Loan Papers or any Liens intended to be created thereby.

 

Section 6. Miscellaneous.

 

6.1 No Waivers.  No failure or delay on the part of Administrative Agent or Banks to exercise any right or remedy under the Credit Agreement, any other Loan Papers or applicable law shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy preclude any other or further exercise of any right or remedy, all of which are cumulative and may be exercised without notice except to the extent notice is expressly required (and has not been waived) under the Credit Agreement, the other Loan Papers and applicable law.

 

6.2 Reaffirmation of Loan Papers.  Any and all of the terms and provisions of the Credit Agreement and the Loan Papers shall, except as amended and modified hereby, remain in full force and effect.  Except as provided in Section 2 hereof, the amendments contemplated hereby shall not limit or impair any Liens securing the Obligations, each of which are hereby ratified, affirmed and extended to secure the Obligations.

 

6.3 Legal Expenses.  Borrower hereby agrees to pay on demand all reasonable fees and expenses of counsel to Administrative Agent incurred by Administrative Agent in connection with the preparation, negotiation and execution of this Ninth Amendment and all related documents.

 

6.4 Parties in Interest.  All of the terms and provisions of this Ninth Amendment shall bind and inure to the benefit of the parties hereto and their respective successors and assigns.

 

6.5 Counterparts.  This Ninth Amendment may be executed in counterparts (including, without limitation, by electronic signature), and all parties need not execute the same counterpart; however, no party shall be bound by this Ninth Amendment until Borrower, Majority Banks and each Restricted Subsidiary have executed a counterpart.  Facsimiles and counterparts executed by electronic signature shall be effective as originals.

 

6.6 Complete Agreement.  THIS NINTH AMENDMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN PAPERS REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR ORAL AGREEMENTS OF THE PARTIES.  THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN OR AMONG THE PARTIES.

 

6.7 Headings.  The headings, captions and arrangements used in this Ninth Amendment are, unless specified otherwise, for convenience only and shall not be deemed to limit, amplify or modify the terms of this Ninth Amendment, nor affect the meaning thereof.

 

  

- 4 -

  

 

6.8 Governing Law.  THIS NINTH AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

 

IN WITNESS WHEREOF, the parties hereto have caused this Ninth Amendment to be duly executed by their respective authorized officers on the date and year first above written.

 

[Signature Pages to Follow]

 

  

- 5 -

  

	  	
 

 

BORROWER:

	  	
 

DENBURY RESOURCES INC.,

a Delaware corporation

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

Each of the undersigned (i) consent and agree to this Ninth Amendment, and (ii) agree that the Loan Papers to which it is a party shall remain in full force and effect and shall continue to be the legal, valid and binding obligation of such Person, enforceable against it in accordance with its terms.

 

	  	
DENBURY GATHERING & MARKETING, INC.,

a Delaware corporation

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

	  	
DENBURY HOLDINGS, INC.,

a Delaware corporation (f/k/a Denbury Encore Holdings Inc.)

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

	  	
DENBURY OPERATING COMPANY,

a Delaware corporation (f/k/a EAP Properties, Inc. and successor-by-merger to a previous “Denbury Operating Company”)

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

 

	  	
DENBURY ONSHORE, LLC,

a Delaware limited liability company

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
DENBURY PIPELINE HOLDINGS, LLC,

a Delaware limited liability company

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

 

	  	
DENBURY GREEN PIPELINE-TEXAS, LLC,

a Delaware limited liability company

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

	  	
DENBURY GULF COAST PIPELINES, LLC,

a Delaware limited liability company

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

	  	
GREENCORE PIPELINE COMPANY LLC,

a Delaware limited liability company

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

	  	
DENBURY AIR, LLC,

a Delaware limited liability company (f/k/a EAP Operating, LLC)

	  	  	  
	  	
 

By:

	
 

/s/ James S. Matthews

	  	  	
James S. Matthews,

Vice President and General Counsel

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
ADMINISTRATIVE AGENT/BANK:

	  	
 

JPMORGAN CHASE BANK, N.A.,

as Administrative Agent and a Bank

	  	  	  
	  	
 

By:

	
 

/s/ Mark E. Olson

	  	  	
Mark E. Olson,

Authorized Officer

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

BANK OF AMERICA, N.A.

	  	  	  
	  	
 

By:

	
 

/s/ Margaret Niekrash

	  	
Name:

	
Margaret Niekrash

	  	
Title:

	
Vice President

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

WELLS FARGO BANK, N.A.

	  	  	  
	  	
 

By:

	
 

/s/ Tom K. Martin

	  	
Name:

	
Tom K. Martin

	  	
Title:

	
Director

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

THE BANK OF NOVA SCOTIA

	  	  	  
	  	
 

By:

	
 

/s/ Terry Donovan

	  	
Name:

	
Terry Donovan

	  	
Title:

	
Managing Director

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH

	  	  	  
	  	
 

By:

	
 

/s/ Doreen Barr

	  	
Name:

	
Doreen Barr

	  	
Title:

	
Director

	  	
 

By:

	
 

/s/ Michael D. Spaight

	  	
Name:

	
Michael D. Spaight

	  	
Title:

	
Associate

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

ROYAL BANK OF CANADA

	  	  	  
	  	
 

By:

	
 

/s/ Jay T. Sartain

	  	
Name:

	
Jay T. Sartain

	  	
Title:

	
Authorized Signatory

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

UBS AG, STAMFORD BRANCH

	  	  	  
	  	
 

By:

	
 

/s/ Irja R. Otsa

	  	
Name:

	
Irja R. Otsa

	  	
Title:

	
Associate Director

	  	
 

By:

	
 

/s/ Joselin Fernandes

	  	
Name:

	
Joselin Fernandes

	  	
Title:

	
Associate Director

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

UNION BANK, N.A.

	  	  	  
	  	
 

By:

	
 

/s/ David Carter

	  	
Name:

	
David Carter

	  	
Title:

	
Investment Banking Officer

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK (f/k/a CALYON NEW YORK BRANCH)

	  	  	  
	  	
 

By:

	
 

/s/ Dixon Schultz

	  	
Name:

	
Dixon Schultz

	  	
Title:

	
Managing Director

	  	
 

By:

	
 

/s/ Sharada Manne

	  	
Name:

	
Sharada Manne

	  	
Title:

	
Managing Director

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

	  	
BANKS:

	  	
 

BANK OF SCOTLAND plc

	  	  	  
	  	
 

By:

	
 

/s/ Julia R. Franklin

	  	
Name:

	
Julia R. Franklin

	  	
Title:

	
Vice President

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

	  	
BANKS:

	  	
 

COMPASS BANK

	  	  	  
	  	
 

By:

	
 

/s/ Umar Hassan

	  	
Name:

	
Umar Hassan

	  	
Title:

	
Vice President

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

CAPITAL ONE NATIONAL ASSOCIATION, formerly known as Capital One, N.A.

	  	  	  
	  	
 

By:

	
 

/s/ Peter Shen

	  	
Name:

	
Peter Shen

	  	
Title:

	
Vice President

	  	  	  

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

	  	
BANKS:

	  	
 

COMERICA BANK

	  	  	  
	  	
 

By:

	
 

/s/ John S. Lesikar

	  	
Name:

	
John S. Lesikar

	  	
Title:

	
Vice President

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

	  	
BANKS:

	  	
 

ING CAPITAL LLC

	  	  	  
	  	
 

By:

	
 

/s/ Charles Hall

	  	
Name:

	
Charles Hall

	  	
Title:

	
Managing Director

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

SUNTRUST BANK

	  	  	  
	  	
 

By:

	
 

/s/ Yann Pirio

	  	
Name:

	
Yann Pirio

	  	
Title:

	
Director

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

CIBC, INC.

	  	  	  
	  	
 

By:

	
 

/s/ Trudy Nelson

	  	
Name:

	
Trudy Nelson

	  	
Title:

	
Authorized Signatory

	  	
 

By:

	
 

/s/ Richard Antl

	  	
Name:

	
Richard Antl

	  	
Title:

	
Authorized Signatory

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

	  	
BANKS:

	  	
 

KEYBANK NATIONAL ASSOCIATION

	  	  	  
	  	
 

By:

	
 

/s/ Chulley Bogle

	  	
Name:

	
Chulley Bogle

	  	
Title:

	
Vice President

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

U.S. BANK NATIONAL ASSOCIATION

	  	  	  
	  	
 

By:

	
 

/s/ Daria Mahoney

	  	
Name:

	
Daria Mahoney

	  	
Title:

	
Vice President

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

	  	
BANKS:

	  	
 

SUMITOMO MITSUI BANKING CORPORATION

	  	  	  
	  	
 

By:

	
 

/s/ Shuji Yabe

	  	
Name:

	
Shuji Yabe

	  	
Title:

	
Managing Director

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

	  	
BANKS:

	  	
 

FIFTH THIRD BANK

	  	  	  
	  	
 

By:

	
 

/s/ Richard C. Butler

	  	
Name:

	
Richard C. Butler

	  	
Title:

	
Senior Vice President

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

COMERICA BANK, successor by merger with

STERLING BANK,  a Texas banking association, as a Lender

	  	  	  
	  	
 

By:

	
 

/s/ John Lesikar

	  	
Name:

	
John Lesikar

	  	
Title:

	
Vice President

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.

 

 

  

  

  

 

 

	  	
BANKS:

	  	
 

GOLDMAN SACHS LENDING

PARTNERS LLC

	  	  	  
	  	
 

By:

	
 

/s/ Jennifer Dokish

	  	
Name:

	
Jennifer Dokish

	  	
Title:

	
Authorized Signatory

 

 

[Signature Page]

Ninth Amendment to Credit Agreement

Denbury Resources Inc.Exhibit 10.1

 

 

 

Execution
Version

REVOLVING
CREDIT, TERM LOAN

AND

SECURITY
AGREEMENT

PNC
BANK, NATIONAL ASSOCIATION

(AS
LENDER AND AS AGENT)

WITH

enservco
corporation,

dillco
fluid service, inc.

AND

heat
waves hot oil services llc

(BORROWERS)

November
2, 2012

 

 

     

     

    
TABLE OF CONTENTS

	 	 	 	Page
	 	 	 	 
	I.	DEFINITIONS	1
	 	1.1	Accounting Terms	1
	 	1.2	General Terms	1
	 	1.3	Uniform Commercial Code Terms	21
	 	1.4	Certain Matters of Construction	22
	 II.	ADVANCES, PAYMENTS 	22
	 	2.1	Revolving Advances	22
	 	2.2	Procedure for Revolving Advances Borrowing	23
	 	2.3	Disbursement of Advance Proceeds	25
	 	2.4	Term Loan	25
	 	2.5	Maximum Advances	26
	 	2.6	Repayment of Advances	26
	 	2.7	Repayment of Excess Advances	27
	 	2.8	Statement of Account	27
	 	2.9	Letters of Credit	27
	 	2.10	Issuance of Letters of Credit	27
	 	2.11	Requirements For Issuance of Letters of Credit	28
	 	2.12	Disbursements, Reimbursement	28
	 	2.13	Repayment of Participation Advances	30
	 	2.14	Documentation	30
	 	2.15	Determination to Honor Drawing Request	30
	 	2.16	Nature of Participation and Reimbursement Obligations	31
	 	2.17	Indemnity	32
	 	2.18	Liability for Acts and Omissions	32
	 	2.19	Additional Payments	34
	 	2.20	Manner of Borrowing and Payment	34
	 	2.21	Mandatory Prepayments	35
	 	2.22	Use of Proceeds	36
	 	2.23	Defaulting Lender	36
	III.	INTEREST AND FEES	37
	 	3.1	Interest	37
	 	3.2	Letter of Credit Fees	38
	 	3.3	Facility Fee	38
	 	3.4	Fee Letter	39
	 	3.5	Computation of Interest and Fees	39
	 	3.6	Maximum Charges	39
	 	3.7	Increased Costs	39
	 	3.8	Basis For Determining Interest Rate Inadequate or Unfair	40
	 	3.9	Capital Adequacy	40
	 	3.10	Gross Up for Taxes	41
	 	3.11	Withholding Tax Exemption	41
	IV.	COLLATERAL: GENERAL TERMS	42
	 	4.1	Security Interest in the Collateral	42
	 	4.2	Perfection of Security Interest	42
	 	4.3	Disposition of Collateral	43
	 	4.4	Preservation of Collateral	43
	 	4.5	Ownership of Collateral	43
	 	4.6	Defense of Agent’s and Lenders’ Interests	44

 

 

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	 	 	 	Page
	 	 	 	 
	 	4.7	Books and Records	44
	 	4.8	Financial Disclosure	45
	 	4.9	Compliance with Laws	45
	 	4.10	Inspection of Premises	45
	 	4.11	Insurance	45
	 	4.12	Failure to Pay Insurance	46
	 	4.13	Payment of Taxes	46
	 	4.14	Payment of Leasehold Obligations	47
	 	4.15	Receivables	47
	 	4.16	Inventory	49
	 	4.17	Maintenance of Equipment	49
	 	4.18	Exculpation of Liability	50
	 	4.19	Environmental Matters	50
	 	4.20	Financing Statements	52
	 	4.21	Appraisals	52
	 V.	REPRESENTATIONS AND WARRANTIES.	52
	 	5.1	Authority	52
	 	5.2	Formation and Qualification	53
	 	5.3	Survival of Representations and Warranties	53
	 	5.4	Tax Returns	53
	 	5.5	Financial Statements	53
	 	5.6	Entity Names	54
	 	5.7	O.S.H.A. and Environmental Compliance	54
	 	5.8	Solvency; No Litigation, Violation, Indebtedness or Default	54
	 	5.9	Patents, Trademarks, Copyrights and Licenses	56
	 	5.10	Licenses and Permits	56
	 	5.11	Default of Indebtedness	56
	 	5.12	No Default	56
	 	5.13	No Burdensome Restrictions	56
	 	5.14	No Labor Disputes	57
	 	5.15	Margin Regulations	57
	 	5.16	Investment Company Act	57
	 	5.17	Disclosure	57
	 	5.18	Swaps	57
	 	5.19	Conflicting Agreements	57
	 	5.20	Application of Certain Laws and Regulations	57
	 	5.21	Business and Property of Borrowers	58
	 	5.22	Section 20 Subsidiaries	58
	 	5.23	Anti-Terrorism Laws	58
	 	5.24	Trading with the Enemy	59
	 	5.25	Federal Securities Laws	59
	 VI.	AFFIRMATIVE COVENANTS.	59
	 	6.1	Payment of Fees	59
	 	6.2	Conduct of Business and Maintenance of Existence and Assets	59
	 	6.3	Violations	59
	 	6.4	Government Receivables	59
	 	6.5	Financial Covenants	60
	 	6.6	Execution of Supplemental Instruments	60
	 	6.7	Payment of Indebtedness	60

 

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	 	 	 	Page
	 	 	 	 
	 	6.8	Standards of Financial Statements	60
	 	6.9	Federal Securities Laws	61
	 	6.10	Vehicle Titles	61
	 	6.11	Termination Statements	61
	 	6.12	Interest Rate Protection Agreement	61
	 	6.13	Affiliate Bankruptcy	61
	 VII.	NEGATIVE COVENANTS.	61
	 	7.1	Merger, Consolidation, Acquisition and Sale of Assets	61
	 	7.2	Creation of Liens	62
	 	7.3	Guarantees	62
	 	7.4	Investments	62
	 	7.5	Loans	62
	 	7.6	Capital Expenditures	62
	 	7.7	Dividends	62
	 	7.8	Indebtedness	62
	 	7.9	Nature of Business	62
	 	7.10	Transactions with Affiliates	63
	 	7.11	Leases	63
	 	7.12	Subsidiaries	63
	 	7.13	Fiscal Year and Accounting Changes	63
	 	7.14	Pledge of Credit	63
	 	7.15	Amendment of Articles or Certificate of Incorporation, By-Laws Certificate of Formation, Operating Agreement	63
	 	7.16	Compliance with ERISA	63
	 	7.17	Prepayment of Indebtedness	64
	 	7.18	Anti-Terrorism Laws	64
	 	7.19	Membership/Partnership Interests	64
	 	7.20	Trading with the Enemy Act	64
	 	7.21	Subordinated Debt	64
	 VIII.	CONDITIONS PRECEDENT.	65
	 	8.1	Conditions to Initial Advances	65
	 	8.2	Conditions to Each Advance	68
	IX.	INFORMATION AS TO BORROWERS.	68
	 	9.1	Disclosure of Material Matters	68
	 	9.2	Schedules	69
	 	9.3	Environmental Reports	69
	 	9.4	Litigation	69
	 	9.5	Material Occurrences	69
	 	9.6	Government Receivables	70
	 	9.7	Annual Financial Statements	70
	 	9.8	Quarterly Financial Statements	70
	 	9.9	Monthly Financial Statements	70
	 	9.10	Other Reports	70
	 	9.11	Additional Information	70
	 	9.12	Projected Operating Budget	71
	 	9.13	Material Variances From Operating Budget, Management Discussion and Analysis	71
	 	9.14	Notice of Suits, Adverse Events	71

 

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	 	 	 	Page
	 	 	 	 
	 	9.15	ERISA Notices and Requests	71
	 	9.16	Additional Documents	72
	X.	EVENTS OF DEFAULT.	72
	 	10.1	Nonpayment	72
	 	10.2	Breach of Representation	72
	 	10.3	Financial Information	72
	 	10.4	Judicial Actions	73
	 	10.5	Noncompliance	73
	 	10.6	Judgments	73
	 	10.7	Bankruptcy	73
	 	10.8	Inability to Pay	73
	 	10.9	[Reserved]	73
	 	10.10	Material Adverse Effect	73
	 	10.11	Lien Priority	73
	 	10.12	[Reserved]	73
	 	10.13	Cross Default	74
	 	10.14	Breach of Guaranty	74
	 	10.15	Change of Ownership	74
	 	10.16	Invalidity	74
	 	10.17	Licenses	74
	 	10.18	Seizures	74
	 	10.19	Operations	74
	 	10.20	Pension Plans	75
	 XI.	LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT.	75
	 	11.1	Rights and Remedies	75
	 	11.2	Agent’s Discretion	77
	 	11.3	Setoff	77
	 	11.4	Rights and Remedies not Exclusive	77
	 	11.5	Allocation of Payments After Event of Default	77
	 XII.	WAIVERS AND JUDICIAL PROCEEDINGS.	78
	 	12.1	Waiver of Notice	78
	 	12.2	Delay	78
	 	12.3	Jury Waiver	78
	XIII.	EFFECTIVE DATE AND TERMINATION.	78
	 	13.1	Term	78
	 	13.2	Termination	79
	 XIV.	REGARDING AGENT.	79
	 	14.1	Appointment	79
	 	14.2	Nature of Duties	80
	 	14.3	Lack of Reliance on Agent and Resignation	80
	 	14.4	Certain Rights of Agent	81
	 	14.5	Reliance	81
	 	14.6	Notice of Default	81
	 	14.7	Indemnification	81
	 	14.8	Agent in its Individual Capacity	82
	 	14.9	Delivery of Documents	82
	 	14.10	Borrowers’ Undertaking to Agent	82

 

 

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	 	14.11	No Reliance on Agent’s Customer Identification Program	82
	 	14.12	Other Agreements	82
	XV.	BORROWING AGENCY.	83
	 	15.1	Borrowing Agency Provisions	83
	 	15.2	Waiver of Subrogation	83
	XVI.	MISCELLANEOUS	83
	 	16.1	Governing Law	83
	 	16.2	Entire Understanding	84
	 	16.3	Successors and Assigns; Participations; New Lenders	86
	 	16.4	Application of Payments	88
	 	16.5	Indemnity	88
	 	16.6	Notice	89
	 	16.7	Survival	91
	 	16.8	Severability	91
	 	16.9	Expenses	91
	 	16.10	Injunctive Relief	91
	 	16.11	Consequential Damages	91
	 	16.12	Captions	92
	 	16.13	Counterparts; Facsimile Signatures	92
	 	16.14	Construction	92
	 	16.15	Confidentiality; Sharing Information	92
	 	16.16	Publicity	93
	 	16.17	Certifications From Banks and Participants; US PATRIOT Act	93

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LIST
OF EXHIBITS AND SCHEDULES

	Exhibits	 
	 	 
	
        Exhibit 1.2(a)

        
	
        Borrowing Base Certificate

        

	Exhibit 1.2(b)	Compliance Certificate
	Exhibit 2.1(a)	Revolving Credit Note
	Exhibit 2.4	Term Note
	Exhibit 8.1(k)	Financial Condition Certificate
	Exhibit 16.3	Commitment Transfer Supplement
	 	 
	 	 
	Schedules	 
	 	 
	Schedule 1.2	Permitted Encumbrances
	Schedule 4.5	Equipment, Inventory and Real Property Locations
	Schedule 4.15(h)	Deposit and Investment Accounts
	Schedule 5.1	Consents
	Schedule 5.2(a)	States of Qualification and Good Standing
	Schedule 5.2(b)	Subsidiaries
	Schedule 5.4	Federal Tax Identification Number
	Schedule 5.6	Prior Names
	Schedule 5.8(b)	Litigation
	Schedule 5.8(d)	Plans
	Schedule 5.9	Intellectual Property, Source Code Escrow Agreements
	Schedule 5.10	Licenses and Permits
	Schedule 5.14	Labor Disputes

 

 

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REVOLVING
CREDIT, TERM LOAN

AND

SECURITY AGREEMENT

Revolving
Credit, Term Loan and Security Agreement dated as of November 2, 2012 among ENSERVCO CORPORATION, a Delaware corporation (“Enservco”),
DILLCO FLUID SERVICE, INC., a Kansas corporation (“Dillco”), and HEAT WAVES HOT OIL SERVICES LLC, a Colorado
limited liability company (“Heat Waves”) (Enservco, Dillco and Heat Waves, each, a “Borrower”
and collectively, “Borrowers”), the financial institutions which are now or which hereafter become a party hereto
(collectively, “Lenders” and individually, a “Lender”) and PNC BANK, NATIONAL ASSOCIATION
(“PNC”), as agent for Lenders (PNC, in such capacity, “Agent”).

IN CONSIDERATION
of the mutual covenants and undertakings herein contained, Borrowers, Lenders and Agent hereby agree as follows:

		I.	DEFINITIONS.

 

1.1             
Accounting Terms. As used in this Agreement, the Other Documents or any certificate, report or other document
made or delivered pursuant to this Agreement, accounting terms not defined in Section 1.2 or elsewhere in this Agreement and accounting
terms partly defined in Section 1.2 to the extent not defined, shall have the respective meanings given to them under GAAP; provided,
however, whenever such accounting terms are used for the purposes of determining compliance with financial covenants in this Agreement,
such accounting terms shall be defined in accordance with GAAP as applied in preparation of the audited financial statements of
Borrowers for the fiscal year ended December 31, 2011.

1.2             
General Terms.

 For purposes
of this Agreement the following terms shall have the following meanings:

“Accountants”
shall have the meaning set forth in Section 9.7 hereof.

“Adjusted
EBITDA” shall mean EBITDA for such period plus: (A) depletion, (B) amortization of deferred financing costs, (C) impairment,
(D) non-cash expenses relating to share based payments recognized under ASC Topic 718 and ASC Subtopic 505-50, (E) pre-tax unrealized
gains and losses on foreign currency, (F) pre-tax unrealized gain and losses on any Interest Rate Hedge or other Hedge Liabilities
or commodity price risk management activities, (G) losses on derivatives for such period, (H) losses on sale of damaged, obsolete
or worn-out Equipment for such period and (I) losses on sale of investments for such period; minus (X) gains on derivatives for
such period, (Y) gains on sale of damaged, obsolete or worn-out Equipment for such period, and (Z) gains on sale of investments
for such period.

“Advance
Rate” shall have the meaning set forth in Section 2.1(a)(y)(i) hereof.

“Advances”
shall mean and include the Revolving Advances, the Letters of Credit and the Term Loan.

 

1

 

     

     

    
 

“Affiliate”
of any Person shall mean (a) any Person which, directly or indirectly, is in control of, is controlled by, or is under common
control with such Person, or (b) any Person who is a director, managing member, general partner or officer (i) of such
Person, (ii) of any Subsidiary of such Person or (iii) of any Person described in clause (a) above. For purposes of this
definition, control of a Person shall mean the power, direct or indirect, (x) to vote 5% or more of the Equity Interests having
ordinary voting power for the election of directors of such Person or other Persons performing similar functions for any such Person,
or (y) to direct or cause the direction of the management and policies of such Person whether by ownership of Equity Interests,
contract or otherwise.

“Agent”
shall have the meaning set forth in the preamble to this Agreement and shall include its successors and assigns.

“Agreement”
shall mean this Revolving Credit, Term Loan and Security Agreement, as the same may be amended, restated, supplemented or otherwise
modified from time to time.

“Alternate
Base Rate” shall mean, for any day, a rate per annum equal to the higher of (i) the Base Rate in effect on such
day, (ii) the Federal Funds Open Rate in effect on such day plus 1/2 of 1% and (iii) the Daily LIBOR Rate plus 1%. For
purposes of this definition, “Daily LIBOR Rate” shall mean, for any day, the rate per annum determined by Agent by
dividing (x) the Published Rate by (y) a number equal to 1.00 minus the percentage prescribed by the Federal Reserve
for determining the maximum reserve requirements with respect to any eurocurrency funding by banks on such day. For the purposes
of this definition, “Published Rate” shall mean the rate of interest published each Business Day in The Wall Street
Journal “Money Rates” listing under the caption “London Interbank Offered Rates” for a one month period
(or, if no such rate is published therein for any reason, then the Published Rate shall be the eurodollar rate for a one month
period as published in another publication determined by Agent).

“Anti-Terrorism
Laws” shall mean any Applicable Laws relating to terrorism or money laundering, including Executive Order No. 13224,
the USA PATRIOT Act, the Applicable Laws comprising or implementing the Bank Secrecy Act, and the Applicable Laws administered
by the United States Treasury Department’s Office of Foreign Asset Control (as any of the foregoing Applicable Laws may from
time to time be amended, renewed, extended, or replaced).

“Applicable
Law” shall mean all laws, rules and regulations applicable to the Person, conduct, transaction, covenant, Other Document
or contract in question, including all applicable common law and equitable principles; all provisions of all applicable state,
federal and foreign constitutions, statutes, rules, regulations, treaties, directives and orders of any Governmental Body, and
all orders, judgments and decrees of all courts and arbitrators.

“Authority”
shall have the meaning set forth in Section 4.19(d).

“Availability
Reserve” shall mean a reserve of $1,000,000 against borrowing availability under the Revolving Advances facility, which
Agent shall impose on the Closing Date, but which shall be subject to reduction or elimination following Agent’s receipt
of the audited annual financial statements for Borrowers fiscal year 2013, provided that: (i) such financial statements
reflect that Borrowers on a Consolidated Basis achieved net income of at least $1,000,000 for such fiscal year and sustained profitability
and other financial benchmarks required by Agent in its Permitted Discretion; (ii) Borrowers have Undrawn Availability of
at least $1,250,000 prior to any such reduction or elimination; and (iii) no Event of Default shall have occurred and be continuing
at the time of any such proposed reduction or elimination.

 

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“Base
Rate” shall mean the base commercial lending rate of PNC as publicly announced to be in effect from time to time, such
rate to be adjusted automatically, without notice, on the effective date of any change in such rate. This rate of interest is determined
from time to time by PNC as a means of pricing some loans to its customers and is neither tied to any external rate of interest
or index nor does it necessarily reflect the lowest rate of interest actually charged by PNC to any particular class or category
of customers of PNC.

“Blocked
Accounts” shall have the meaning set forth in Section 4.15(h).

“Blocked
Account Bank” shall have the meaning set forth in Section 4.15(h).

“Blocked
Person” shall have the meaning set forth in Section 5.23(b) hereof.

“Borrower”
or “Borrowers” shall have the meaning set forth in the preamble to this Agreement and shall extend to all permitted
successors and assigns of such Persons.

“Borrowers
on a Consolidated Basis” shall mean the consolidation in accordance with GAAP of the accounts or other items of Enservco
and its Subsidiaries whether or not the Subsidiaries are a Borrower, and which are included on a consolidated basis in the financial
statements filed by Enservco with the SEC.

“Borrowers’
Account” shall have the meaning set forth in Section 2.8.

“Borrowing
Agent” shall mean Enservco.

“Borrowing
Base Certificate” shall mean a certificate in substantially the form of Exhibit 1.2 duly executed by the
President, Chief Financial Officer or Controller of Borrowing Agent and delivered to Agent, appropriately completed, by which such
officer shall certify to Agent the Formula Amount and calculation thereof as of the date of such certificate.

“Business
Day” shall mean any day other than Saturday or Sunday or a legal holiday on which commercial banks are authorized or
required by law to be closed for business in East Brunswick, New Jersey and, if the applicable Business Day relates to any Eurodollar
Rate Loans, such day must also be a day on which dealings are carried on in the London interbank market.

“Capital
Expenditures” shall mean expenditures made or liabilities incurred for the acquisition of any fixed assets or improvements,
replacements, substitutions or additions thereto which have a useful life of more than one year, including the total principal
portion of Capitalized Lease Obligations, which, in accordance with GAAP, would be classified as capital expenditures.

 

3

 

 

     

     

    

“Capitalized
Lease Obligation” shall mean any Indebtedness of any Borrower represented by obligations under a lease that is required
to be capitalized for financial reporting purposes in accordance with GAAP.

“CERCLA”
shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §§9601
et seq.

“Change
of Ownership” shall mean any of the following events to the extent that such event has (or can reasonably be expected
to have) a Material Adverse Effect on the Borrowers on a Consolidated Basis: (a) Enservco shall cease to own all of the Equity
Interests of Dillco, (b) Dillco shall cease to own all of the Equity Interests of Heat Waves or (c) any merger, consolidation
or sale of substantially all of the property or assets of any Borrower.

“Closing
Date” shall mean November 2, 2012 or such other date as may be agreed to by the parties hereto.

“Code”
shall mean the Internal Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute
of similar import, and the rules and regulations thereunder, as from time to time in effect.

“Collateral”
shall mean and include the following except for the exclusions set forth in paragraph (i) below:

(a)all
Receivables;

(b)all
Equipment;

(c)all
General Intangibles;

(d)all
Inventory;

(e)all
Investment Property;

(f)all
of each Borrower’s right, title and interest in and to, whether now owned or hereafter acquired and wherever located, (i) its
respective goods and other property including, but not limited to, all merchandise returned or rejected by Customers, relating
to or securing any of the Receivables; (ii) all of each Borrower’s rights as a consignor, a consignee, an unpaid vendor,
mechanic, artisan, or other lienor, including stoppage in transit, setoff, detinue, replevin, reclamation and repurchase; (iii) all
additional amounts due to any Borrower from any Customer relating to the Receivables; (iv) other property, including warranty
claims, relating to any goods securing the Obligations; (v) all of each Borrower’s contract rights, rights of payment
which have been earned under a contract right, instruments (including promissory notes), documents, chattel paper (including electronic
chattel paper), warehouse receipts, deposit accounts, letters of credit and money; (vi) all commercial tort claims (whether
now existing or hereafter arising); (vii) if and when obtained by any Borrower, all real and personal property of third parties
in which such Borrower has been granted a lien or security interest as security for the payment or enforcement of Receivables;
(viii) all letter of credit rights (whether or not the respective letter of credit is evidenced by a writing); (ix) all
supporting obligations; and (x) any other goods, personal property or real property now owned or hereafter acquired in which
any Borrower has expressly granted a security interest or may in the future grant a security interest to Agent hereunder, or in
any amendment or supplement hereto or thereto, or under any other agreement between Agent and any Borrower;

 

4

 

     

     

    
 

(g)all
of each Borrower’s ledger sheets, ledger cards, files, correspondence, records, books of account, business papers, computers,
computer software (owned by any Borrower or in which it has an interest), computer programs, tapes, disks and documents relating
to (a), (b), (c), (d), (e), (f), (g), (h) or (i) of this Paragraph; and

(h)all
proceeds and products of (a), (b), (c), (d), (e), (f) and (g) in whatever form, including, but not limited to: cash, deposit accounts
(whether or not comprised solely of proceeds), certificates of deposit, insurance proceeds (including hazard, flood and credit
insurance), negotiable instruments and other instruments for the payment of money, chattel paper, security agreements, documents,
eminent domain proceeds, condemnation proceeds and tort claim proceeds.

(i)When
used herein, the term “Collateral” does not include any of the foregoing which are collateral for Permitted Encumbrances.

“Commitment
Percentage” of any Lender shall mean the percentage set forth below such Lender’s name on the signature page hereof
as same may be adjusted upon any assignment by a Lender pursuant to Section 16.3(c) or (d) hereof.

“Commitment
Transfer Supplement” shall mean a document in the form of Exhibit 16.3 hereto, properly completed and otherwise
in form and substance satisfactory to Agent by which the Purchasing Lender purchases and assumes a portion of the obligation of
Lenders to make Advances under this Agreement.

“Compliance
Certificate” shall mean a compliance certificate substantially in the form of Exhibit 1.2(b) hereto to be signed
by the Chief Financial Officer or Controller of Borrowing Agent, which shall state that, based on an examination sufficient to
permit such officer to make an informed statement, no Default or Event of Default exists, or if such is not the case, specifying
such Default or Event of Default, its nature, when it occurred, whether it is continuing and the steps being taken by Borrowers
with respect to such default and, such certificate shall have appended thereto calculations which set forth Borrowers’ compliance
with the requirements or restrictions imposed by Sections 6.5, 7.6 and 7.11.

“Consents”
shall mean all filings and all licenses, permits, consents, approvals, authorizations, qualifications and orders of Governmental
Bodies and other third parties, domestic or foreign, necessary to carry on any Borrower’s business or necessary (including
to avoid a conflict or breach under any agreement, instrument, other document, license, permit or other authorization) for the
execution, delivery or performance of this Agreement, the Other Documents, including any Consents required under all applicable
federal, state or other Applicable Law except to the extent that the failure to obtain such Consent reasonably would not be expected
to have a Material Adverse Effect.

5

 

  

     

     

    

“Contract
Rate” shall mean, as applicable, the Revolving Interest Rate or the Term Loan Rate.

“Controlled
Group” shall mean, at any time, each Borrower and all members of a controlled group of corporations and all trades or
businesses (whether or not incorporated) under common control and all other entities which, together with any Borrower, are treated
as a single employer under Section 414 of the Code.

“Customer”
shall mean and include the account debtor with respect to any Receivable and/or the prospective purchaser of goods, services or
both with respect to any contract or contract right, and/or any party who enters into or proposes to enter into any contract or
other arrangement with any Borrower, pursuant to which such Borrower is to deliver any personal property or perform any services.

“Customs”
shall have the meaning set forth in Section 2.11(b) hereof.

“Default”
shall mean an event, circumstance or condition which, with the giving of notice or passage of time or both, would constitute an
Event of Default.

“Default
Rate” shall have the meaning set forth in Section 3.1 hereof.

“Defaulting
Lender” shall have the meaning set forth in Section 2.23(a) hereof.

“Depository
Accounts” shall have the meaning set forth in Section 4.15(h) hereof.

“Designated
Lender” shall have the meaning set forth in Section 16.2(b) hereof.

“Documents”
shall have the meaning set forth in Section 8.1(c) hereof.

“Dollar”
and the sign “$” shall mean lawful money of the United States of America.

“Domestic
Rate Loan” shall mean any Advance that bears interest based upon the Alternate Base Rate.

“Drawing
Date” shall have the meaning set forth in Section 2.12(b) hereof.

“Early
Termination Date” shall have the meaning set forth in Section 13.1 hereof.

“Earnings
Before Interest and Taxes” shall mean for any period the sum of (i) net income (or loss) of Borrowers on a Consolidated
Basis for such period (excluding extraordinary gains and losses), plus (ii) all interest expense of Borrowers on a Consolidated
Basis for such period, plus (iii) all charges against income of Borrowers on a Consolidated Basis for such period for federal,
state and local taxes actually paid.

“EBITDA”
shall mean for any period the sum of (i) Earnings Before Interest and Taxes for such period plus (ii) depreciation expenses
for such period, plus (iii) amortization expenses for such period.

6

 

     

     

    
 

“Eligible
Receivables” shall mean and include with respect to each Borrower, each Receivable of such Borrower arising in the Ordinary
Course of Business and which Agent, in its sole credit judgment, shall deem to be an Eligible Receivable, based on such considerations
as Agent may from time to time deem appropriate. A Receivable shall not be deemed eligible unless such Receivable is subject to
Agent’s first priority perfected security interest and no other Lien (other than Permitted Encumbrances), and is evidenced
by an invoice or other documentary evidence satisfactory to Agent. In addition, no Receivable shall be an Eligible Receivable if:

(a)it arises
out of a sale made by any Borrower to an Affiliate of any Borrower or to a Person controlled by an Affiliate of any Borrower;

(b)it is
due or unpaid more than ninety (90) days after the original invoice date or sixty (60) days after the due date, or if such Receivable
is from an Extended Term Customer, it is due or unpaid more than one hundred twenty (120) days after the original invoice date
or ninety (90) days after the due date;

(c)it constitutes
a retainage receivable;

(d)fifty
percent (50%) or more of the Receivables from such Customer are not deemed Eligible Receivables hereunder if such Customer is not
an Extended Term Customer, or twenty-five percent (25%) or more of the Receivables from such Customer are not deemed Eligible Receivables
hereunder if such Customer is an Extended Term Customer;

(e)any
covenant, representation or warranty contained in this Agreement with respect to such Receivable has been breached in any material
respect;

(f)the
Customer shall (i) apply for, suffer, or consent to the appointment of, or the taking of possession by, a receiver, custodian,
trustee or liquidator of itself or of all or a substantial part of its property or call a meeting of its creditors, (ii) admit
in writing its inability, or be generally unable, to pay its debts as they become due or cease operations of its present business,
(iii) make a general assignment for the benefit of creditors, (iv) commence a voluntary case under any state or federal
bankruptcy laws (as now or hereafter in effect), (v) be adjudicated a bankrupt or insolvent, (vi) file a petition seeking
to take advantage of any other law providing for the relief of debtors, (vii) acquiesce to, or fail to have dismissed, any
petition which is filed against it in any involuntary case under such bankruptcy laws, or (viii) take any action for the purpose
of effecting any of the foregoing;

(g)the
sale is to a Customer outside the continental United States of America, unless the sale is on letter of credit, guaranty or acceptance
terms, in each case acceptable to Agent in its Permitted Discretion;

(h)the
sale to the Customer is on a bill-and-hold, guaranteed sale, sale-and-return, sale on approval, consignment or any other repurchase
or return basis or is evidenced by chattel paper;

(i)Agent
believes, in its Permitted Discretion, that collection of such Receivable is materially insecure or that such Receivable may not
be paid by reason of the Customer’s financial inability to pay;

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(j)the
Customer is the United States of America, any state or any department, agency or instrumentality of any of them, unless the applicable
Borrower assigns its right to payment of such Receivable to Agent pursuant to the Assignment of Claims Act of 1940, as amended
(31 U.S.C. Sub-Section 3727 et seq. and 41 U.S.C. Sub-Section 15 et seq.) or has otherwise complied with other applicable statutes
or ordinances;

(k)the
goods giving rise to such Receivable have not been delivered to and accepted by the Customer or the services giving rise to such
Receivable have not been performed by the applicable Borrower and accepted by the Customer or the Receivable otherwise does not
represent a final sale;

(l)the
Receivables of the Customer exceed a credit limit determined by Agent, in its Permitted Discretion, to the extent such Receivable
exceeds such limit;

(m)the
Receivable is subject to any offset, deduction, defense, dispute, or counterclaim, the Customer is also a creditor or supplier
of a Borrower, or the Receivable is contingent in any respect or for any reason;

(n)the
applicable Borrower has made any agreement with any Customer for any deduction therefrom, except for discounts or allowances made
in the Ordinary Course of Business for prompt payment, all of which discounts or allowances are reflected in the calculation of
the face value of each respective invoice related thereto;

(o)any
return, rejection or repossession of the merchandise has occurred or the rendition of services has been disputed;

(p)such
Receivable is not payable to a Borrower; or

(q)such
Receivable is not otherwise satisfactory to Agent as determined in good faith by Agent in the exercise of its Permitted Discretion.

“Environmental
Complaint” shall have the meaning set forth in Section 4.19(d) hereof.

“Environmental
Laws” shall mean all federal, state and local environmental, land use, zoning, health, chemical use, safety and sanitation
laws, statutes, ordinances and codes relating to the protection of the environment and/or governing the use, storage, treatment,
generation, transportation, processing, handling, production or disposal of Hazardous Substances and the rules, regulations, policies,
guidelines, interpretations, decisions, orders and directives of federal, state and local governmental agencies and authorities
with respect thereto.

“Equipment”
shall mean and include as to each Borrower all of such Borrower’s goods (other than Inventory) whether now owned or hereafter
acquired and wherever located including all equipment, machinery, apparatus, motor vehicles, fittings, furniture, furnishings,
fixtures, parts, accessories and all replacements and substitutions therefor or accessions thereto.

“Equity
Interests” of any Person shall mean any and all shares, rights to purchase, options, warrants, general, limited or limited
liability partnership interests, member interests, participation or other equivalents of or interest in (regardless of how designated)
equity of such Person, whether voting or nonvoting, including common stock, preferred stock, convertible securities or any other
“equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the
SEC under the Exchange Act).

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“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time and the rules and regulations promulgated
thereunder.

“Eurodollar
Rate” shall mean for any Eurodollar Rate Loan for the then current Interest Period relating thereto the interest rate
per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) determined by Agent by dividing (i) the rate which appears
on the Bloomberg Page BBAM1 (or on such other substitute Bloomberg page that displays rates at which US dollar deposits are offered
by leading banks in the London interbank deposit market), or the rate which is quoted by another source selected by Agent which
has been approved by the British Bankers’ Association as an authorized information vendor for the purpose of displaying rates
at which US dollar deposits are offered by leading banks in the London interbank deposit market (an “Alternative Source”),
at approximately 11:00 a.m., London time two (2) Business Days prior to the first day of such Interest Period (or if there shall
at any time, for any reason, no longer exist a Bloomberg Page BBAM1 (or any substitute page) or any Alternate Source, a comparable
replacement rate determined by the Agent at such time (which determination shall be conclusive absent manifest error)) for an amount
comparable to such Eurodollar Rate Loan and having a borrowing date and a maturity comparable to such Interest Period by (ii) a
number equal to 1.00 minus the Reserve Percentage.

The Eurodollar
Rate shall be adjusted with respect to any Eurodollar Rate Loan that is outstanding on the effective date of any change in the
Reserve Percentage as of such effective date. The Agent shall give prompt notice to the Borrowing Agent of the Eurodollar Rate
as determined or adjusted in accordance herewith, which determination shall be conclusive absent manifest error.

“Eurodollar
Rate Loan” shall mean an Advance at any time that bears interest based on the Eurodollar Rate.

“Event
of Default” shall have the meaning set forth in Article X hereof.

“Excess
Cash Flow” for any fiscal period shall mean Adjusted EBITDA of Borrowers on a Consolidated Basis for such fiscal period
minus Unfinanced Capital Expenditures made by Borrowers on a Consolidated Basis during such fiscal period minus taxes actually
paid by Borrowers on a Consolidated Basis during such fiscal period plus decreases in working capital of Borrowers on a Consolidated
Basis for such fiscal period minus increases in working capital of Borrowers on a Consolidated Basis for such fiscal period.

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

“Executive
Order No. 13224” shall mean the Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001, as the
same has been, or shall hereafter be, renewed, extended, amended or replaced.

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“Extended
Term Customer” means Anadarko, Oxy USA, E.Q.T., Exxon Mobil, Antero Resources, Chesapeake, or Brigham-Statoil Company.

“Federal
Funds Effective Rate” for any day shall mean the rate per annum (based on a year of 360 days and actual days elapsed
and rounded upward to the nearest 1/100 of 1%) announced by the Federal Reserve Bank of New York (or any successor) on such day
as being the weighted average of the rates on overnight federal funds transactions arranged by federal funds brokers on the previous
trading day, as computed and announced by such Federal Reserve Bank (or any successor) in substantially the same manner as such
Federal Reserve Bank computes and announces the weighted average it refers to as the “Federal Funds Effective Rate”
as of the date of this Agreement; provided, if such Federal Reserve Bank (or its successor) does not announce such rate on any
day, the “Federal Funds Effective Rate” for such day shall be the Federal Funds Effective Rate for the last day on
which such rate was announced.

“Federal
Funds Open Rate” for any day shall mean the rate per annum (based on a year of 360 days and actual days elapsed) which
is the daily federal funds open rate as quoted by ICAP North America, Inc. (or any successor) as set forth on the Bloomberg Screen
BTMM for that day opposite the caption “OPEN” (or on such other substitute Bloomberg Screen that displays such rate),
or as set forth on such other recognized electronic source used for the purpose of displaying such rate as selected by PNC (an
“Alternate Source”) (or if such rate for such day does not appear on the Bloomberg Screen BTMM (or any substitute screen)
or on any Alternate Source, or if there shall at any time, for any reason, no longer exist a Bloomberg Screen BTMM (or any substitute
screen) or any Alternate Source, a comparable replacement rate determined by the PNC at such time (which determination shall be
conclusive absent manifest error); provided however, that if such day is not a Business Day, the Federal Funds Open Rate for such
day shall be the “open” rate on the immediately preceding Business Day. If and when the Federal Funds Open Rate changes,
the rate of interest with respect to any advance to which the Federal Funds Open Rate applies will change automatically without
notice to the Borrowers, effective on the date of any such change.

“Fee
Letter” shall mean the fee letter dated as of the date hereof between Borrowers and Agent.

“Fixed
Charge Coverage Ratio” shall mean and include, with respect to any fiscal period, the ratio of (a) Adjusted EBITDA for
such period minus (i) Unfinanced Capital Expenditures made during such period and (ii) cash taxes paid during such period to (b)
all Senior Debt Payments during such period.

“Foreign
Subsidiary” of any Person, shall mean any Subsidiary of such Person that is not organized or incorporated in the United
States or any State or territory thereof.

“Formula
Amount” shall have the meaning set forth in Section 2.1(a).

“Funded
Debt” shall mean, with respect to any Person, without duplication, all Indebtedness for borrowed money evidenced by notes,
bonds, debentures, or similar evidences of Indebtedness that by its terms matures more than one year from, or is directly or indirectly
renewable or extendible at such Person’s option under a revolving credit or similar agreement obligating the lender or lenders
to extend credit over a period of more than one year from the date of creation thereof, and specifically including Capitalized
Lease Obligations, current maturities of long-term debt, revolving credit and short term debt extendible beyond one year at the
option of the debtor, and also including, in the case of Borrower, the Obligations and, without duplication, Indebtedness consisting
of guaranties of Funded Debt of other Persons.

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“GAAP”
shall mean generally accepted accounting principles in the United States of America in effect from time to time and as interpreted
by the rules and regulations of the SEC.

“General
Intangibles” shall mean and include as to each Borrower all of such Borrower’s general intangibles, whether now
owned or hereafter acquired, including all payment intangibles, all choses in action, causes of action, corporate or other business
records, inventions, designs, patents, patent applications, equipment formulations, manufacturing procedures, quality control procedures,
trademarks, trademark applications, service marks, trade secrets, goodwill, copyrights, design rights, software, computer information,
source codes, codes, records and updates, registrations, licenses, franchises, customer lists, tax refunds, tax refund claims,
computer programs, all claims under guaranties, security interests or other security held by or granted to such Borrower to secure
payment of any of the Receivables by a Customer (other than to the extent covered by Receivables) all rights of indemnification
and all other intangible property of every kind and nature (other than Receivables).

“Governmental
Acts” shall have the meaning set forth in Section 2.17.

“Governmental
Body” shall mean any nation or government, any state or other political subdivision thereof or any entity, authority,
agency, division or department exercising the legislative, judicial, regulatory or administrative functions of or pertaining to
a government.

“Guarantor”
shall mean Michael D. Herman and any other Person who may hereafter guarantee payment or performance of the whole or any part of
the Obligations and “Guarantors” means collectively all such Persons.

“Guarantor
Security Agreement” shall mean any security agreement executed by any Guarantor in favor of Agent securing the Guaranty
of such Guarantor, in form and substance satisfactory to the Agent.

“Guarantor
Subordination Agreement” shall mean a subordination agreement between Agent and Michael D. Herman with respect to the
indebtedness of Enservco to Mr. Herman (not including, however, any salary, guarantee fee, or other reasonable amount payable to
Mr. Herman for services rendered to the Borrowers) in form and substance satisfactory to Agent in its Permitted Discretion.

“Guaranty”
shall mean any guaranty of the obligations of Borrowers executed by a Guarantor in favor of Agent for its benefit and for the ratable
benefit of Lenders, in form and substance satisfactory to the Agent.

“Hazardous
Discharge” shall have the meaning set forth in Section 4.19(d) hereof.

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“Hazardous
Substance” shall mean, without limitation, any flammable explosives, radon, radioactive materials, asbestos, urea formaldehyde
foam insulation, polychlorinated biphenyls, petroleum and petroleum products, methane, hazardous materials, Hazardous Wastes, hazardous
or Toxic Substances or related materials as defined in CERCLA, the Hazardous Materials Transportation Act, as amended (49 U.S.C.
Sections 1801, et seq.), RCRA, Articles 15 and 27 of the New York State Environmental Conservation Law or any other applicable
Environmental Law and in the regulations adopted pursuant thereto.

“Hazardous
Wastes” shall mean all waste materials subject to regulation under CERCLA, RCRA or applicable state law, and any other
applicable Federal and state laws now in force or hereafter enacted relating to hazardous waste disposal.

“Hedge
Liabilities” shall have the meaning provided in the definition of “Lender-Provided Interest Rate Hedge.”

“Increased
Tax Burden” shall mean the additional federal, state or local taxes assumed to be payable by a member of any Borrower
as a result of such Borrower’s status as a limited liability company as evidenced and substantiated by the tax returns filed
by such Borrower as a limited liability company, with such taxes being calculated for all members at the highest marginal rate
applicable to any member.

“Indebtedness”
of a Person at a particular date shall mean all obligations of such Person which in accordance with GAAP would be classified upon
a balance sheet as liabilities (except capital stock and surplus earned or otherwise) and in any event, without limitation by reason
of enumeration, shall include all indebtedness, debt and other similar monetary obligations of such Person whether direct or guaranteed,
and all premiums, if any, due at the required prepayment dates of such indebtedness, and all indebtedness secured by a Lien on
assets owned by such Person, whether or not such indebtedness actually shall have been created, assumed or incurred by such Person.
Any indebtedness of such Person resulting from the acquisition by such Person of any assets subject to any Lien shall be deemed,
for the purposes hereof, to be the equivalent of the creation, assumption and incurring of the indebtedness secured thereby, whether
or not actually so created, assumed or incurred.

“Ineligible
Security” shall mean any security which may not be underwritten or dealt in by member banks of the Federal Reserve System
under Section 16 of the Banking Act of 1933 (12 U.S.C. Section 24, Seventh), as amended.

“Intellectual
Property” shall mean property constituting under any Applicable Law a patent, patent application, copyright, trademark,
service mark, trade name, mask work, trade secret or license or other right to use any of the foregoing.

“Intellectual
Property Claim” shall mean the assertion by any Person of a claim (whether asserted in writing, by action, suit or proceeding
or otherwise) that any Borrower’s ownership, use, marketing, sale or distribution of any Inventory, Equipment, Intellectual
Property or other property or asset that is material to Borrowers on a Consoldated Basis is violative of any ownership of or right
to use any Intellectual Property of such Person.

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“Interest
Period” shall mean the period provided for any Eurodollar Rate Loan pursuant to Section 2.2(b).

“Interest
Rate Hedge” shall mean an interest rate exchange, collar, cap, swap, adjustable strike cap, adjustable strike corridor
or similar agreements entered into by any Borrower or its Subsidiaries in order to provide protection to, or minimize the impact
upon, such Borrower, any Guarantor and/or their respective Subsidiaries of increasing floating rates of interest applicable to
Indebtedness.

“Inventory”
shall mean and include as to each Borrower all of such Borrower’s now owned or hereafter acquired goods, merchandise and
other personal property, wherever located, to be furnished under any consignment arrangement, contract of service or held for sale
or lease, all raw materials, work in process, finished goods and materials and supplies of any kind, nature or description which
are or might be used or consumed in such Borrower’s business or used in selling or furnishing such goods, merchandise and
other personal property, and all documents of title or other documents representing them.

“Investment
Property” shall mean and include as to each Borrower, all of such Borrower’s now owned or hereafter acquired securities
(whether certificated or uncertificated), securities entitlements, securities accounts, commodities contracts and commodities accounts.

“Issuer”
shall mean any Person who issues a Letter of Credit and/or accepts a draft pursuant to the terms hereof.

“Lender”
and “Lenders” shall have the meaning ascribed to such term in the preamble to this Agreement and shall include
each Person which becomes a transferee, successor or assign of any Lender.

“Lender-Provided
Interest Rate Hedge” shall mean an Interest Rate Hedge which is provided by any Lender and with respect to which the
Agent confirms meets the following requirements: such Interest Rate Hedge (i) is documented in a standard International Swap
Dealer Association Agreement, (ii) provides for the method of calculating the reimbursable amount of the provider’s
credit exposure in a reasonable and customary manner, and (iii) is entered into for hedging (rather than speculative) purposes.
The liabilities of any Borrower to the provider of any Lender-Provided Interest Rate Hedge or currency hedge, future, option or
other similar agreement provided by any Lender (collectively, the “Hedge Liabilities”) shall be “Obligations”
hereunder, guaranteed obligations under the Guaranty and secured obligations under the Guarantor Security Agreement and otherwise
treated as Obligations for purposes of each of the Other Documents. The Liens securing the Hedge Liabilities shall be pari passu
with the Liens securing all other Obligations under this Agreement and the Other Documents.

“Letter
of Credit Fees” shall have the meaning set forth in Section 3.2.

“Letter
of Credit Borrowing” shall have the meaning set forth in Section 2.12(d).

“Letter
of Credit Sublimit” shall mean $250,000.

“Letters
of Credit” shall have the meaning set forth in Section 2.9.

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“License
Agreement” shall mean any agreement between any Borrower and a Licensor pursuant to which such Borrower is authorized
to use any Intellectual Property in connection with the manufacturing, marketing, sale or other distribution of any Inventory of
such Borrower or otherwise in connection with such Borrower’s business operations.

“Licensor”
shall mean any Person from whom any Borrower obtains the right to use (whether on an exclusive or non-exclusive basis) any Intellectual
Property in connection with such Borrower’s manufacture, marketing, sale or other distribution of any Inventory or otherwise
in connection with such Borrower’s business operations.

“Licensor/Agent
Agreement” shall mean an agreement between Agent and a Licensor, in form and content satisfactory to Agent, by which
Agent is given the unqualified right, vis-a-vis such Licensor, to enforce Agent’s Liens with respect to and to dispose of
any Borrower’s Inventory with the benefit of any Intellectual Property applicable thereto, irrespective of such Borrower’s
default under any License Agreement with such Licensor.

“Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, security interest, lien (whether statutory or otherwise),
Charge, claim or encumbrance, or preference, priority or other security agreement or preferential arrangement held or asserted
in respect of any asset of any kind or nature whatsoever including any conditional sale or other title retention agreement, any
lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing
statement under the Uniform Commercial Code or comparable law of any jurisdiction.

“Lien
Waiver Agreement” shall mean an agreement which is executed in favor of Agent by a Person who owns or occupies premises
at which any Collateral may be located from time to time and by which such Person shall waive any Lien that such Person may ever
have with respect to any of the Collateral and shall authorize Agent from time to time to enter upon the premises to inspect or
remove the Collateral from such premises or to use such premises to store or dispose of such Inventory.

“Material
Adverse Effect” shall mean a material adverse effect on (a) the condition (financial or otherwise), results of operations,
assets, business, properties or prospects of Borrowers on a Consolidated Basis, (b) the ability of Borrowers on a Consolidated
Basis to duly and punctually pay or perform the Obligations in accordance with the terms thereof, (c) the value of the Collateral,
or Agent’s Liens on the Collateral or the priority of any such Lien or (d) the practical realization of the benefits
of Agent’s and each Lender’s rights and remedies under this Agreement and the Other Documents.

“Maximum
Face Amount” shall mean, with respect to any outstanding Letter of Credit, the face amount of such Letter of Credit including
all automatic increases provided for in such Letter of Credit, whether or not any such automatic increase has become effective.

“Maximum
Revolving Advance Amount” shall mean $5,000,000.

“Maximum
Undrawn Amount” shall mean with respect to any outstanding Letter of Credit, the amount of such Letter of Credit that
is or may become available to be drawn, including all automatic increases provided for in such Letter of Credit, whether or not
any such automatic increase has become effective.

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“Modified
Commitment Transfer Supplement” shall have the meaning set forth in Section 16.3(d).

“Multiemployer
Plan” shall mean a “multiemployer plan” as defined in Sections 3(37) and 4001(a)(3) of ERISA.

“Multiple
Employer Plan” shall mean a Plan which has two or more contributing sponsors (including any Borrower or any member of
the Controlled Group) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

“Notes”
shall mean, collectively, the Revolving Credit Note and the Term Note.

“Obligations”
shall mean and include any and all loans, advances, debts, liabilities, obligations, covenants and duties owing by any Borrower
to Lenders or Agent or to any other direct or indirect subsidiary or affiliate of Agent or any Lender of any kind or nature, present
or future (including any interest or other amounts accruing thereon after maturity, or after the filing of any petition in bankruptcy,
or the commencement of any insolvency, reorganization or like proceeding relating to any Borrower, whether or not a claim for post-filing
or post-petition interest or other amounts is allowed in such proceeding), whether or not evidenced by any note, guaranty or other
instrument, whether arising under any agreement, instrument or document, (including this Agreement and the Other Documents) whether
or not for the payment of money, whether arising by reason of an extension of credit, opening of a letter of credit, loan, equipment
lease or guarantee, under any interest or currency swap, future, option or other similar agreement, or in any other manner, whether
arising out of overdrafts or deposit or other accounts or electronic funds transfers (whether through automated clearing houses
or otherwise) or out of the Agent’s or any Lenders non-receipt of or inability to collect funds or otherwise not being made
whole in connection with depository transfer check or other similar arrangements, whether direct or indirect (including those acquired
by assignment or participation), absolute or contingent, joint or several, due or to become due, now existing or hereafter arising,
contractual or tortious, liquidated or unliquidated, regardless of how such indebtedness or liabilities arise or by what agreement
or instrument they may be evidenced or whether evidenced by any agreement or instrument, including, but not limited to, any and
all of any Borrower’s Indebtedness and/or liabilities under this Agreement, the Other Documents or under any other agreement
between Agent or Lenders and any Borrower and any amendments, extensions, renewals or increases and all costs and expenses of Agent
and any Lender incurred in the documentation, negotiation, modification, enforcement, collection or otherwise in connection with
any of the foregoing, including but not limited to reasonable attorneys’ fees and expenses and all obligations of any Borrower
to Agent or Lenders to perform acts or refrain from taking any action.

“Ordinary
Course of Business” shall mean with respect to any Borrower, the ordinary course of such Borrower’s business as
described in Section 5.21.

“Other
Documents” shall mean the Notes, the Questionnaire, the Fee Letter, the Guaranty, the Guarantor Security Agreement, the
Guarantor Subordination Agreement, any Lender-Provided Interest Rate Hedge and any and all other agreements, instruments and documents,
including guaranties, pledges, powers of attorney, consents, interest or currency swap agreements, futures, options or other similar
agreements and all other writings heretofore, now or hereafter executed by any Borrower or any Guarantor and/or delivered to Agent
or any Lender in respect of the transactions contemplated by this Agreement.

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“Out-of-Formula
Loans” shall have the meaning set forth in Section 16.2(b).

“Overadvance
Threshold Amount” shall have the meaning set forth in Section 16.2(b) hereof.

“Parent”
of any Person shall mean a corporation or other entity owning, directly or indirectly at least 50% of the shares of stock or other
ownership interests having ordinary voting power to elect a majority of the directors of the Person, or other Persons performing
similar functions for any such Person.

“Participant”
shall mean each Person who shall be granted the right by any Lender to participate in any of the Advances and who shall have entered
into a participation agreement in form and substance satisfactory to such Lender.

“Participation
Advance” shall have the meaning set forth in Section 2.12(d).

“Participation
Commitment” shall mean each Lender’s obligation to buy a participation of the Letters of Credit issued hereunder.

“Payee”
shall have the meaning set forth in Section 3.10.

“Payment
Office” shall mean initially Two Tower Center Boulevard, East Brunswick, New Jersey 08816; thereafter, such other office
of Agent, if any, which it may designate by notice to Borrowing Agent and to each Lender to be the Payment Office.

“PBGC”
shall mean the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any successor.

“Pension
Benefit Plan” shall mean at any time any employee pension benefit plan (including a Multiple Employer Plan, but not a
Multiemployer Plan) which is covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the
Code and either (i) is maintained by any member of the Controlled Group for employees of any member of the Controlled Group;
or (ii) has at any time within the preceding five years been maintained by any entity which was at such time a member of the
Controlled Group for employees of any entity which was at such time a member of the Controlled Group.

“Permitted
Discretion” shall mean a determination made in good faith and in the exercise of commercially reasonable (from the standpoint
of an asset-based lender) business judgment.

“Permitted
Encumbrances” shall mean:

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(a)Liens
in favor of Agent for the benefit of Agent and Lenders;

(b)Liens
for taxes, assessments or other governmental charges not delinquent or being Properly Contested;

(c)Liens
disclosed in the financial statements referred to in Section 5.5 and any Liens granted in substitution therefor or renewal, extension,
refinancing or replacement thereof without increasing any Borrower’s obligations thereunder;

(d)deposits
or pledges to secure obligations under worker’s compensation, social security or similar laws, or under unemployment insurance;

(e)deposits
or pledges to secure bids, tenders, contracts (other than contracts for the payment of money), leases, statutory obligations, surety
and appeal bonds and other obligations of like nature arising in the Ordinary Course of Business;

(f)Liens
arising by virtue of the rendition, entry or issuance against any Borrower or any Subsidiary, or any property of any Borrower or
any Subsidiary, of any judgment, writ, order, or decree for so long as each such Lien (x) is in existence for less than 20
consecutive days after it first arises or is being Properly Contested and (y) is at all times junior in priority to any Liens
in favor of Agent;

(g)mechanics’,
workers’, materialmen’s or other like Liens arising in the Ordinary Course of Business with respect to obligations
which are not due or which are being Properly Contested;

(h)Liens
placed upon fixed assets hereafter acquired to secure a portion of the purchase price thereof, provided that (x) any such
lien shall not encumber any other property of any Borrower and (y) the aggregate amount of Indebtedness secured by such Liens
incurred as a result of such purchases during any fiscal year shall not exceed the amount provided for in Section 7.6;

(i) other
Liens incidental to the conduct of any Borrower’s business or the ownership of its property and assets which were not incurred
in connection with the borrowing of money or the obtaining of advances or credit, and which do not in the aggregate materially
detract from Agent’s or Lenders’ rights in and to the Collateral or the value of any Borrower’s property or assets
or which do not materially impair the use thereof in the operation of any Borrower’s business; and

(j)Liens
disclosed on Schedule 1.2; provided that such Liens shall secure only those obligations which they secure on the Closing
Date (and extensions, renewals and refinancings of such obligations permitted by Section 7.8) and shall not subsequently apply
to any other property or assets of any Borrower.

“Person”
shall mean any individual, sole proprietorship, partnership, corporation, business trust, joint stock company, trust, unincorporated
organization, association, limited liability company, limited liability partnership, institution, public benefit corporation, joint
venture, entity or Governmental Body (whether federal, state, county, city, municipal or otherwise, including any instrumentality,
division, agency, body or department thereof).

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“Plan”
shall mean any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Benefit Plan), maintained
for employees of any Borrower or any member of the Controlled Group or any such Plan to which any Borrower or any member of the
Controlled Group is required to contribute on behalf of any of its employees.

“PNC”
shall have the meaning set forth in the preamble to this Agreement and shall extend to all of its successors and assigns.

“Properly
Contested” shall mean, in the case of any Indebtedness or Lien, as applicable, of any Person (including any taxes) that
is not paid as and when due or payable by reason of such Person’s bona fide dispute concerning its liability to pay same
or concerning the amount thereof, (i) such Indebtedness or Lien, as applicable, is being properly contested in good faith
by appropriate proceedings promptly instituted and diligently conducted; (ii) such Person has established appropriate reserves
as shall be required in conformity with GAAP; (iii) the non-payment of such Indebtedness will not have a Material Adverse
Effect and will not result in the forfeiture of any assets of such Person; (iv) no Lien is imposed upon any of such Person’s
assets with respect to such Indebtedness unless such Lien is at all times junior and subordinate in priority to the Liens in favor
of the Agent (except only with respect to property taxes that have priority as a matter of applicable state law) and enforcement
of such Lien is stayed during the period prior to the final resolution or disposition of such dispute; (v) if such Indebtedness
or Lien, as applicable, results from, or is determined by the entry, rendition or issuance against a Person or any of its assets
of a judgment, writ, order or decree, enforcement of such judgment, writ, order or decree is stayed pending a timely appeal or
other judicial review; and (vi) if such contest is abandoned, settled or determined adversely (in whole or in part) to such
Person, such Person forthwith pays such Indebtedness and all penalties, interest and other amounts due in connection therewith.

“Purchasing
CLO” shall have the meaning set forth in Section 16.3(d) hereof.

“Purchasing
Lender” shall have the meaning set forth in Section 16.3(c) hereof.

“Questionnaire”
shall mean the Documentation Information Questionnaire and the responses thereto provided by Borrowers and delivered to Agent.

“RCRA”
shall mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., as same may be amended from time to
time.

“Real
Property” shall mean any real property or any improvements thereto owned or leased by any Borrower.

“Receivables”
shall mean and include, as to each Borrower, all of such Borrower’s accounts, contract rights, instruments (including those
evidencing indebtedness owed to such Borrower by its Affiliates), documents, chattel paper (including electronic chattel paper),
general intangibles relating to accounts, drafts and acceptances, credit card receivables and all other forms of obligations owing
to such Borrower arising out of or in connection with the sale or lease of Inventory or the rendition of services, all supporting
obligations, guarantees and other security therefor, whether secured or unsecured, now existing or hereafter created, and whether
or not specifically sold or assigned to Agent hereunder.

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“Register”
shall have the meaning set forth in Section 16.3(e).

“Reimbursement
Obligation” shall have the meaning set forth in Section 2.12(b)hereof.

“Release”
shall have the meaning set forth in Section 5.7(c)(i) hereof.

“Reportable
Event” shall mean a reportable event described in Section 4043(c) of ERISA or the regulations promulgated thereunder.

“Required
Lenders” shall mean Lenders holding at least fifty-one percent (51%) of the Advances and, if no Advances are outstanding,
shall mean Lenders holding at least fifty-one percent (51%) of the Commitment Percentages; provided, however, if there are fewer
than three (3) Lenders, Required Lenders shall mean all Lenders.

“Reserve
Percentage” shall mean as of any day the maximum percentage in effect on such day as prescribed by the Board of Governors
of the Federal Reserve System (or any successor) for determining the reserve requirements (including supplemental, marginal and
emergency reserve requirements) with respect to eurocurrency funding (currently referred to as “Eurocurrency Liabilities”.

“Revolving
Advances” shall mean Advances made other than Letters of Credit and the Term Loan.

“Revolving
Credit Note” shall mean the promissory note referred to in Section 2.1(a) hereof.

“Revolving
Interest Rate” shall mean an interest rate per annum equal to (a) the sum of the Alternate Base Rate plus one and
one-quarter percent (1.25%) with respect to Domestic Rate Loans and (b) the sum of the Eurodollar Rate plus three and one-quarter
percent (3.25%) with respect to Eurodollar Rate Loans.

“SEC”
shall mean the Securities and Exchange Commission or any successor thereto.

“Section
20 Subsidiary” shall mean the Subsidiary of the bank holding company controlling PNC, which Subsidiary has been granted
authority by the Federal Reserve Board to underwrite and deal in certain Ineligible Securities.

“Securities
Act” shall mean the Securities Act of 1933, as amended.

“Senior
Debt Payments” shall mean and include all cash actually expended by any Borrower to make (a) interest payments on
any Advances hereunder, plus (b) scheduled principal payments on the Term Loan, plus (c) payments for all fees, commissions
and charges set forth herein and with respect to any Advances, plus (d) capitalized lease payments, plus (e) payments
with respect to any other Indebtedness for borrowed money.

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“Settlement
Date” shall mean the Closing Date and thereafter Wednesday or Thursday of each week or more frequently if Agent deems
appropriate unless such day is not a Business Day in which case it shall be the next succeeding Business Day.

“Subsidiary”
of any Person shall mean a corporation or other entity of whose Equity Interests having ordinary voting power (other than Equity
Interests having such power only by reason of the happening of a contingency) to elect a majority of the directors of such corporation,
or other Persons performing similar functions for such entity, are owned, directly or indirectly, by such Person.

“Subsidiary
Stock” shall mean all of the issued and outstanding Equity Interests of any Subsidiary owned by any Borrower (not to
exceed 65% of the Equity Interests of any Foreign Subsidiary).

“Tangible
Net Worth” shall mean, at a particular date, (a) the aggregate amount of all assets of Borrowers on a Consolidated
Basis as may be properly classified as such in accordance with GAAP consistently applied, excluding such other assets as are properly
classified as intangible assets under GAAP, less (b) the aggregate amount of all liabilities of Borrowers on a Consolidated
Basis (excluding any liability that is subordinate in writing to the Obligations).

“Term”
shall have the meaning set forth in Section 13.1 hereof.

“Term
Loan” shall mean the Advances made pursuant to Section 2.4 hereof.

“Term
Loan Rate” shall mean an interest rate per annum equal to (a) the sum of the Alternate Base Rate plus two and one-quarter
percent (2.25%) with respect to Domestic Rate Loans and (b) the sum of the Eurodollar Rate plus four and one-quarter percent
(4.25%) with respect to Eurodollar Rate Loans.

“Term
Note” shall mean the promissory note described in Section 2.4 hereof.

“Termination
Event” shall mean (i) a Reportable Event with respect to any Plan or Multiemployer Plan; (ii) the withdrawal
of any Borrower or any member of the Controlled Group from a Plan or Multiemployer Plan during a plan year in which such entity
was a “substantial employer” as defined in Section 4001(a)(2) of ERISA; (iii) the providing of notice of intent
to terminate a Plan in a distress termination described in Section 4041(c) of ERISA; (iv) the institution by the PBGC of proceedings
to terminate a Plan or Multiemployer Plan; (v) any event or condition (a) which might constitute grounds under Section
4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan or Multiemployer Plan, or (b) that
may result in termination of a Multiemployer Plan pursuant to Section 4041A of ERISA; or (vi) the partial or complete withdrawal
within the meaning of Sections 4203 and 4205 of ERISA, of any Borrower or any member of the Controlled Group from a Multiemployer
Plan.

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“Toxic
Substance” shall mean and include any material present on the Real Property or the Leasehold Interests which has been
shown to have significant adverse effect on human health or which is subject to regulation under the Toxic Substances Control Act
(TSCA), 15 U.S.C. §§ 2601 et seq., applicable state law, or any other applicable Federal or state laws now in force or
hereafter enacted relating to toxic substances. “Toxic Substance” includes but is not limited to asbestos, polychlorinated
biphenyls (PCBs) and lead-based paints.

“Trading
with the Enemy Act” shall mean the foreign assets control regulations of the United States Treasury Department (31 CFR,
Subtitle B, Chapter V, as amended) and any enabling legislation or executive order relating thereto.

“Transferee”
shall have the meaning set forth in Section 16.3(d) hereof.

“Undrawn
Availability” at a particular date shall mean an amount equal to (a) the lesser of (i) the Formula Amount or
(ii) the Maximum Revolving Advance Amount, minus (b) the sum of (i) the outstanding amount of Advances (other than
the Term Loan) plus (ii) all amounts due and owing to any Borrower’s trade creditors which are outstanding beyond normal
trade terms.

“Unfinanced
Capital Expenditures” shall mean all Capital Expenditures of Borrower other than those made utilizing financing provided
by the applicable seller or third party lenders. For the avoidance of doubt, Capital Expenditures made by a Borrower utilizing
Revolving Advances shall be deemed Unfinanced Capital Expenditures.

“Uniform
Commercial Code” shall have the meaning set forth in Section 1.3 hereof.

“USA
PATRIOT Act” shall mean the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and
Obstruct Terrorism Act of 2001, Public Law 107-56, as the same has been, or shall hereafter be, renewed, extended, amended or replaced.

“Week”
shall mean the time period commencing with the opening of business on a Wednesday and ending on the end of business the following
Tuesday.

1.3             
Uniform Commercial Code Terms.

All terms
used herein and defined in the Uniform Commercial Code as adopted in the State of New York from time to time (the “Uniform
Commercial Code”) shall have the meaning given therein unless otherwise defined herein. Without limiting the foregoing, the
terms “accounts,” “chattel paper,” “commercial tort claims,” “instruments,” “general
intangibles,” “goods,” “payment intangibles,” “proceeds,” “supporting obligations,”
“securities,” “investment property,” “documents,” “deposit accounts,” “software,”
“letter of credit rights,” “inventory,” “equipment” and “fixtures,” as and when
used in the description of Collateral shall have the meanings given to such terms in Articles 8 or 9 of the Uniform Commercial
Code. To the extent the definition of any category or type of collateral is expanded by any amendment, modification or revision
to the Uniform Commercial Code, such expanded definition will apply automatically as of the date of such amendment, modification
or revision.

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1.4             
Certain Matters of Construction.

The terms
“herein,” “hereof” and “hereunder” and other words of similar import refer to this Agreement
as a whole and not to any particular section, paragraph or subdivision. All references herein to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, this Agreement. Any pronoun used
shall be deemed to cover all genders. Wherever appropriate in the context, terms used herein in the singular also include the plural
and vice versa. All references to statutes and related regulations shall include any amendments of same and any successor statutes
and regulations. Unless otherwise provided, all references to any instruments or agreements to which Agent is a party, including
references to any of the Other Documents, shall include any and all modifications or amendments thereto and any and all extensions
or renewals thereof. All references herein to the time of day shall mean the time in New York, New York. Whenever the words “including”
or “include” shall be used, such words shall be understood to mean “including, without limitation” or “include,
without limitation.” A Default or Event of Default shall be deemed to exist at all times during the period commencing on
the date that such Default or Event of Default occurs to the date on which such 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 shall “continue” or be “continuing” until such Event of Default has been waived
in writing by the Required Lenders. Any Lien referred to in this Agreement or any of the Other Documents as having been created
in favor of Agent, any agreement entered into by Agent pursuant to this Agreement or any of the Other Documents, any payment made
by or to or funds received by Agent pursuant to or as contemplated by this Agreement or any of the Other Documents, or any act
taken or omitted to be taken by Agent, shall, unless otherwise expressly provided, be created, entered into, made or received,
or taken or omitted, for the benefit or account of Agent and Lenders. Wherever the phrase “to the best of Borrowers’
knowledge” or words of similar import relating to the knowledge or the awareness of any Borrower are used in this Agreement
or Other Documents, such phrase shall mean and refer to (i) the actual knowledge of a senior officer of any Borrower or (ii) the
knowledge that a senior officer would have obtained if he had engaged in good faith and diligent performance of his duties, including
the making of such reasonably specific inquiries as may be necessary of the employees or agents of such Borrower and a good faith
attempt to ascertain the existence or accuracy of the matter to which such phrase relates. All covenants hereunder shall be given
independent effect so that if a particular action or condition is not permitted by any of such covenants, the fact that it would
be permitted by an exception to, or otherwise within the limitations of, another covenant shall not avoid the occurrence of a default
if such action is taken or condition exists. In addition, all representations and warranties hereunder shall be given independent
effect so that if a particular representation or warranty proves to be incorrect or is breached, the fact that another representation
or warranty concerning the same or similar subject matter is correct or is not breached will not affect the incorrectness of a
breach of a representation or warranty hereunder.

		II.	ADVANCES, PAYMENTS.

2.1             
Revolving Advances.

(a)               
Amount of Revolving Advances. Subject to the terms and conditions set forth in this Agreement including Section
2.1(b), each Lender, severally and not jointly, will make Revolving Advances to Borrowers in aggregate amounts outstanding at any
time equal to such Lender’s Commitment Percentage of the lesser of (x) the Maximum Revolving Advance Amount less the
aggregate Maximum Undrawn Amount of all outstanding Letters of Credit or (y) an amount equal to:

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(i)                
up to 85%, subject to the provisions of Section 2.1(d) hereof (the “Advance Rate”), of Eligible
Receivables, minus

(ii)              
the aggregate Maximum Undrawn Amount of all outstanding Letters of Credit, minus

(iii)            
the Availability Reserve, if then in effect, minus

(iv)            
such other reserves as Agent may reasonably deem proper and necessary from time to time.

The amount
derived from (x) Section 2.1(a)(y)(i) minus (y) Sections 2.1(a)(y)(ii), (iii) and (iv) at any time and from time
to time shall be referred to as the “Formula Amount.” The Revolving Advances shall be evidenced by one or more
secured promissory notes (collectively, the “Revolving Credit Note”) substantially in the form attached hereto
as Exhibit 2.1(a).

(b)              
Discretionary Rights. The Advance Rate may be increased or decreased by Agent at any time and from time to
time in the exercise of its Permitted Discretion. Each Borrower consents to any such increases or decreases and acknowledges that
decreasing the Advance Rate or increasing or imposing reserves may limit or restrict Advances requested by Borrowing Agent. Agent
shall give Borrowing Agent not less than five (5) Business Days prior written notice of its intention to decrease the Advance Rate.
The rights of Agent under this subsection are subject to the provisions of Section 16.2(b).

2.2             
Procedure for Revolving Advances Borrowing.

(a)               
Borrowing Agent on behalf of any Borrower may notify Agent prior to 10:00 a.m. on a Business Day of a Borrower’s
request to incur, on that day, a Revolving Advance hereunder. Should any amount required to be paid as interest hereunder, or as
fees or other charges under this Agreement or any other agreement with Agent or Lenders, or with respect to any other Obligation,
become due, same shall be deemed a request for a Revolving Advance maintained as a Domestic Rate Loan as of the date such payment
is due, in the amount required to pay in full such interest, fee, charge or Obligation under this Agreement or any other agreement
with Agent or Lenders, and such request shall be irrevocable.

(b)              
Notwithstanding the provisions of subsection (a) above, in the event any Borrower desires to obtain a Eurodollar
Rate Loan, Borrowing Agent shall give Agent written notice by no later than 10:00 a.m. on the day which is three (3) Business Days
prior to the date such Eurodollar Rate Loan is to be borrowed, specifying (i) the date of the proposed borrowing (which shall
be a Business Day), (ii) the type of borrowing and the amount on the date of such Advance to be borrowed, which amount shall
be in an aggregate principal amount that is not less than $500,000 and integral multiples of $100,000 in excess thereof, and (iii) the
duration of the first Interest Period therefor. Interest Periods for Eurodollar Rate Loans shall be for one, two or three months;
provided, if an Interest Period would end on a day that is not a Business Day, it shall end on the next succeeding Business Day
unless such day falls in the next succeeding calendar month in which case the Interest Period shall end on the next preceding Business
Day. No Eurodollar Rate Loan shall be made available to any Borrower during the continuance of a Default or an Event of Default.
After giving effect to each requested Eurodollar Rate Loan, including those which are converted from a Domestic Rate Loan under
Section 2.2(d), there shall not be outstanding more than five (5) Eurodollar Rate Loans, in the aggregate.

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(c)               
Each Interest Period of a Eurodollar Rate Loan shall commence on the date such Eurodollar Rate Loan is made and shall
end on such date as Borrowing Agent may elect as set forth in subsection (b)(iii) above provided that the exact length of each
Interest Period shall be determined in accordance with the practice of the interbank market for offshore Dollar deposits and no
Interest Period shall end after the last day of the Term.

Borrowing
Agent shall elect the initial Interest Period applicable to a Eurodollar Rate Loan by its notice of borrowing given to Agent pursuant
to Section 2.2(b) or by its notice of conversion given to Agent pursuant to Section 2.2(d), as the case may be. Borrowing Agent
shall elect the duration of each succeeding Interest Period by giving irrevocable written notice to Agent of such duration not
later than 10:00 a.m. on the day which is three (3) Business Days prior to the last day of the then current Interest Period applicable
to such Eurodollar Rate Loan. If Agent does not receive timely notice of the Interest Period elected by Borrowing Agent, Borrowing
Agent shall be deemed to have elected to convert to a Domestic Rate Loan subject to Section 2.2(d) hereinbelow.

(d)              
Provided that no Event of Default shall have occurred and be continuing, Borrowing Agent may, on the last Business
Day of the then current Interest Period applicable to any outstanding Eurodollar Rate Loan, or on any Business Day with respect
to Domestic Rate Loans, convert any such loan into a loan of another type in the same aggregate principal amount provided that
any conversion of a Eurodollar Rate Loan shall be made only on the last Business Day of the then current Interest Period applicable
to such Eurodollar Rate Loan. If Borrowing Agent desires to convert a loan, Borrowing Agent shall give Agent written notice by
no later than 10:00 a.m. (i) on the day which is three (3) Business Days prior to the date on which such conversion is to
occur with respect to a conversion from a Domestic Rate Loan to a Eurodollar Rate Loan, or (ii) on the day which is one (1)
Business Day prior to the date on which such conversion is to occur with respect to a conversion from a Eurodollar Rate Loan to
a Domestic Rate Loan, specifying, in each case, the date of such conversion, the loans to be converted and if the conversion is
from a Domestic Rate Loan to any other type of loan, the duration of the first Interest Period therefor.

(e)               
At its option and upon written notice given prior to 10:00 a.m. (New York time) at least three (3) Business Days
prior to the date of such prepayment, any Borrower may prepay the Eurodollar Rate Loans in whole at any time or in part from time
to time with accrued interest on the principal being prepaid to the date of such repayment. Such Borrower shall specify the date
of prepayment of Advances which are Eurodollar Rate Loans and the amount of such prepayment. In the event that any prepayment of
a Eurodollar Rate Loan is required or permitted on a date other than the last Business Day of the then current Interest Period
with respect thereto, such Borrower shall indemnify Agent and Lenders therefor in accordance with Section 2.2(f) hereof.

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(f)               
Each Borrower shall indemnify Agent and Lenders and hold Agent and Lenders harmless from and against any and all
losses or expenses that Agent and Lenders may sustain or incur as a consequence of any prepayment, conversion of or any default
by any Borrower in the payment of the principal of or interest on any Eurodollar Rate Loan or failure by any Borrower to complete
a borrowing of, a prepayment of or conversion of or to a Eurodollar Rate Loan after notice thereof has been given, including, but
not limited to, any interest payable by Agent or Lenders to lenders of funds obtained by it in order to make or maintain its Eurodollar
Rate Loans hereunder. A certificate as to any additional amounts payable pursuant to the foregoing sentence submitted by Agent
or any Lender to Borrowing Agent shall be conclusive absent manifest error.

(g)              
Notwithstanding any other provision hereof, if any Applicable Law, or any change therein or in the interpretation
or application thereof, shall make it unlawful for any Lender (for purposes of this subsection (g), the term “Lender”
shall include any Lender and the office or branch where any Lender or any corporation or bank controlling such Lender makes or
maintains any Eurodollar Rate Loans) to make or maintain its Eurodollar Rate Loans, the obligation of Lenders to make Eurodollar
Rate Loans hereunder shall forthwith be cancelled and Borrowers shall, if any affected Eurodollar Rate Loans are then outstanding,
promptly upon request from Agent, either pay all such affected Eurodollar Rate Loans or convert such affected Eurodollar Rate Loans
into loans of another type. If any such payment or conversion of any Eurodollar Rate Loan is made on a day that is not the last
day of the Interest Period applicable to such Eurodollar Rate Loan, Borrowers shall pay Agent, upon Agent’s request, such
amount or amounts as may be necessary to compensate Lenders for any loss or expense sustained or incurred by Lenders in respect
of such Eurodollar Rate Loan as a result of such payment or conversion, including (but not limited to) any interest or other amounts
payable by Lenders to lenders of funds obtained by Lenders in order to make or maintain such Eurodollar Rate Loan. A certificate
as to any additional amounts payable pursuant to the foregoing sentence submitted by Lenders to Borrowing Agent shall be conclusive
absent manifest error.

2.3             
Disbursement of Advance Proceeds. All Advances shall be disbursed from whichever office or other place Agent
may designate from time to time and, together with any and all other Obligations of Borrowers to Agent or Lenders, shall be charged
to Borrowers’ Account on Agent’s books. During the Term, Borrowers may use the Revolving Advances by borrowing, prepaying
and reborrowing, all in accordance with the terms and conditions hereof. The proceeds of each Revolving Advance requested by Borrowing
Agent on behalf of any Borrower or deemed to have been requested by any Borrower under Section 2.2(a) hereof shall, with respect
to requested Revolving Advances to the extent Lenders make such Revolving Advances, be made available to the applicable Borrower
on the day so requested by way of credit to such Borrower’s operating account at PNC, or such other bank as Borrowing Agent
may designate following notification to Agent, in immediately available federal funds or other immediately available funds or,
with respect to Revolving Advances deemed to have been requested by any Borrower, be disbursed to Agent to be applied to the outstanding
Obligations giving rise to such deemed request.

2.4             
Term Loan. Subject to the terms and conditions of this Agreement, each Lender, severally and not jointly,
will make a term loan to Borrowers (collectively, the “Term Loan”) in the sum equal to such Lender’s
Commitment Percentage of $11,000,000. The Term Loan shall be advanced on the Closing Date and shall be, with respect to principal,
payable as follows, subject to acceleration upon the occurrence of an Event of Default under this Agreement or termination of
this Agreement: thirty-five (35) equal monthly principal installments of $130,952 each, beginning on November 30, 2012 and continuing
on the last day of each month thereafter through and including September 30, 2015, with any remaining principal due on the last
day of the Term. The Term Loan shall be evidenced by one or more secured promissory notes (collectively, the “Term Note”)
in substantially the form attached hereto as Exhibit 2.4. The Term Loan may consist of Domestic Rate Loans or Eurodollar
Rate Loans, or a combination thereof, as Borrowing Agent may request. In the event that Borrowers desire to obtain or extend a
Eurodollar Rate Loan or to convert a Domestic Rate Loan to a Eurodollar Rate Loan, Borrowing Agent shall comply with the notification
requirements set forth in Sections 2.2(b) and (d) and the provisions of Sections 2.2(b) through (g) shall apply.

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2.5             
Maximum Advances. The aggregate balance of Revolving Advances outstanding at any time shall not exceed the
lesser of (a) the Maximum Revolving Advance Amount or (b) the Formula Amount less, in each case, the aggregate Maximum
Undrawn Amount of all issued and outstanding Letters of Credit.

2.6             
Repayment of Advances.

(a)               
The Revolving Advances shall be due and payable in full on the last day of the Term subject to earlier prepayment
as herein provided. The Term Loan shall be due and payable as provided in Section 2.4 hereof and in the Term Note, subject to mandatory
prepayments as herein provided.

(b)              
Each Borrower recognizes that the amounts evidenced by checks, notes, drafts or any other items of payment relating
to and/or proceeds of Collateral may not be collectible by Agent on the date received. In consideration of Agent’s agreement
to conditionally credit Borrowers’ Account as of the next Business Day following the Agent’s receipt of those items
of payment, each Borrower agrees that, in computing the charges under this Agreement, all items of payment shall be deemed applied
by Agent on account of the Obligations one (1) Business Day after (i) the Business Day following the Agent’s receipt
of such payments via wire transfer or electronic depository check or (ii) in the case of payments received by Agent in any
other form, the Business Day such payment constitutes good funds in Agent’s account. Agent is not, however, required to credit
Borrowers’ Account for the amount of any item of payment which is unsatisfactory to Agent in Agent’s Permitted Discretion
and Agent may charge Borrowers’ Account for the amount of any item of payment which is returned to Agent unpaid.

(c)               
All payments of principal, interest and other amounts payable hereunder, or under any of the Other Documents shall
be made to Agent at the Payment Office not later than 1:00 P.M. (New York time) on the due date therefor in lawful money of the
United States of America in federal funds or other funds immediately available to Agent. Agent shall have the right to effectuate
payment on any and all Obligations due and owing hereunder by charging Borrowers’ Account or by making Advances as provided
in Section 2.2 hereof.

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(d)              
Borrowers shall pay principal, interest, and all other amounts payable hereunder, or under any related agreement,
without any deduction whatsoever, including, but not limited to, any deduction for any setoff or counterclaim.

2.7             
Repayment of Excess Advances. The aggregate balance of Advances outstanding at any time in excess of the
maximum amount of Advances permitted hereunder shall be immediately due and payable without the necessity of any demand, at the
Payment Office, whether or not a Default or Event of Default has occurred.

2.8             
Statement of Account. Agent shall maintain, in accordance with its customary procedures, a loan account (“Borrowers’
Account”) in the name of Borrowers in which shall be recorded the date and amount of each Advance made by Agent and the
date and amount of each payment in respect thereof; provided, however, the failure by Agent to record the date and amount of any
Advance shall not adversely affect Agent or any Lender. Each month, Agent shall send to Borrowing Agent a statement showing the
accounting for the Advances made, payments made or credited in respect thereof, and other transactions between Agent and Borrowers
during such month. The monthly statements shall be deemed correct and binding upon Borrowers in the absence of manifest error
and shall constitute an account stated between Lenders and Borrowers unless Agent receives a written statement of Borrowers’
specific exceptions thereto within thirty (30) days after such statement is received by Borrowing Agent. The records of Agent
with respect to the loan account shall be conclusive evidence absent manifest error of the amounts of Advances and other charges
thereto and of payments applicable thereto.

2.9             
Letters of Credit. Subject to the terms and conditions hereof, Agent shall issue or cause the issuance of
standby and/or trade letters of credit (“Letters of Credit”) for the account of any Borrower; provided, however, that
Agent will not be required to issue or cause to be issued any Letters of Credit to the extent that the issuance thereof would
then cause the sum of (i) the outstanding Revolving Advances plus (ii) the Maximum Undrawn Amount of all outstanding
Letters of Credit to exceed the lesser of (x) the Maximum Revolving Advance Amount or (y) the Formula Amount. The Maximum
Undrawn Amount of outstanding Letters of Credit shall not exceed in the aggregate at any time the Letter of Credit Sublimit. All
disbursements or payments related to Letters of Credit shall be deemed to be Domestic Rate Loans consisting of Revolving Advances
and shall bear interest at the Revolving Interest Rate for Domestic Rate Loans. Letters of Credit that have not been drawn upon
shall not bear interest.

2.10         
Issuance of Letters of Credit.

(a)               
Borrowing Agent, on behalf of Borrowers, may request Agent to issue or cause the issuance of a Letter of Credit by
delivering to Agent at the Payment Office, prior to 10:00 a.m. (New York time), at least five (5) Business Days prior to the proposed
date of issuance, Agent’s form of Letter of Credit Application (the “Letter of Credit Application”) completed
to the satisfaction of Agent; and, such other certificates, documents and other papers and information as Agent may reasonably
request. Borrowing Agent, on behalf of Borrowers, also has the right to give instructions and make agreements with respect to any
application, any applicable letter of credit and security agreement, any applicable letter of credit reimbursement agreement and/or
any other applicable agreement, any letter of credit and the disposition of documents, disposition of any unutilized funds, and
to agree with Agent upon any amendment, extension or renewal of any Letter of Credit.

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(b)              
Each Letter of Credit shall, among other things, (i) provide for the payment of sight drafts when presented
for honor thereunder in accordance with the terms thereof and when accompanied by the documents described therein and (ii) have
an expiry date not later than twelve (12) months after such Letter of Credit’s date of issuance and in no event later than
the last day of the Term. Each standby Letter of Credit shall be subject either to the Uniform Customs and Practice for Documentary
Credits as most recently published by the International Chamber of Commerce at the time a Letter of Credit is issued (the “UCP”)
or the International Standby Practices (ISP98 International Chamber of Commerce Publication Number 590) (the “ISP98 Rules”)),
and any subsequent revision thereof at the time a standby Letter of Credit is issued, as determined by Agent, and each trade Letter
of Credit shall be subject to the UCP.

(c)               
Agent shall use its reasonable efforts to notify Lenders of the request by Borrowing Agent for a Letter of Credit
hereunder.

2.11         
Requirements For Issuance of Letters of Credit. 

(a)               
Borrowing Agent shall authorize and direct any Issuer to name the applicable Borrower as the “Applicant”
or “Account Party” of each Letter of Credit. If Agent is not the Issuer of any Letter of Credit, Borrowing Agent shall
authorize and direct the Issuer to deliver to Agent all instruments, documents, and other writings and property received by the
Issuer pursuant to the Letter of Credit and to accept and rely upon Agent’s instructions and agreements with respect to all
matters arising in connection with the Letter of Credit or the application therefor.

(b)              
In connection with all Letters of Credit issued or caused to be issued by Agent under this Agreement, each Borrower
hereby appoints Agent, or its designee, as its attorney, with full power and authority if an Event of Default shall have occurred,
(i) to sign and/or endorse such Borrower’s name upon any warehouse or other receipts, letter of credit applications
and acceptances, (ii) to sign such Borrower’s name on bills of lading; (iii) to clear Inventory through the United
States of America Customs Department (“Customs”) in the name of such Borrower or Agent or Agent’s designee,
and to sign and deliver to Customs officials powers of attorney in the name of such Borrower for such purpose; and (iv) to
complete in such Borrower’s name or Agent’s, or in the name of Agent’s designee, any order, sale or transaction,
obtain the necessary documents in connection therewith, and collect the proceeds thereof. Neither Agent nor its attorneys will
be liable for any acts or omissions nor for any error of judgment or mistakes of fact or law, except for Agent’s or its attorney’s
willful misconduct. This power, being coupled with an interest, is irrevocable as long as any Letters of Credit remain outstanding.

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2.12         
Disbursements, Reimbursement.

(a)               
Immediately upon the issuance of each Letter of Credit, each Lender shall be deemed to, and hereby irrevocably and
unconditionally agrees to, purchase from Agent a participation in such Letter of Credit and each drawing thereunder in an amount
equal to such Lender’s Commitment Percentage of the Maximum Face Amount of such Letter of Credit and the amount of such drawing,
respectively.

(b)              
In the event of any request for a drawing under a Letter of Credit by the beneficiary or transferee thereof, Agent
will promptly notify Borrowing Agent. Provided that Borrowing Agent shall have received such notice, the Borrowers shall reimburse
(such obligation to reimburse Agent shall sometimes be referred to as a “Reimbursement Obligation”) Agent prior
to 12:00 Noon, New York time on each date that an amount is paid by Agent under any Letter of Credit (each such date, a “Drawing
Date”) in an amount equal to the amount so paid by Agent. In the event Borrowers fail to reimburse Agent for the full
amount of any drawing under any Letter of Credit by 12:00 Noon, New York time, on the Drawing Date, Agent will promptly notify
each Lender thereof, and Borrowers shall be deemed to have requested that a Revolving Advance maintained as a Domestic Rate Loan
be made by the Lenders to be disbursed on the Drawing Date under such Letter of Credit, subject to the amount of the unutilized
portion of the lesser of Maximum Revolving Advance Amount or the Formula Amount and subject to Section 8.2 hereof. Any notice given
by Agent pursuant to this Section 2.12(b) may be oral if immediately confirmed in writing; provided that the lack of such an immediate
confirmation shall not affect the conclusiveness or binding effect of such notice.

(c)               
Each Lender shall upon any notice pursuant to Section 2.12(b) make available to Agent an amount in immediately available
funds equal to its Commitment Percentage of the amount of the drawing, whereupon the participating Lenders shall (subject to Section
2.12(d)) each be deemed to have made a Revolving Advance maintained as a Domestic Rate Loan to Borrowers in that amount. If any
Lender so notified fails to make available to Agent the amount of such Lender’s Commitment Percentage of such amount by no
later than 2:00 p.m., New York time on the Drawing Date, then interest shall accrue on such Lender’s obligation to make such
payment, from the Drawing Date to the date on which such Lender makes such payment (i) at a rate per annum equal to the Federal
Funds Effective Rate during the first three days following the Drawing Date and (ii) at a rate per annum equal to the rate
applicable to Revolving Advances maintained as a Domestic Rate Loans on and after the fourth day following the Drawing Date. Agent
will promptly give notice of the occurrence of the Drawing Date, but failure of Agent to give any such notice on the Drawing Date
or in sufficient time to enable any Lender to effect such payment on such date shall not relieve such Lender from its obligation
under this Section 2.12(c), provided that such Lender shall not be obligated to pay interest as provided in Section 2.12(c) (i)
and (ii) until and commencing from the date of receipt of notice from Agent of a drawing.

(d)              
With respect to any unreimbursed drawing that is not converted into a Revolving Advance maintained as a Domestic
Rate Loan to Borrowers in whole or in part as contemplated by Section 2.12(b), because of Borrowers’ failure to satisfy the
conditions set forth in Section 8.2 (other than any notice requirements) or for any other reason, Borrowers shall be deemed to
have incurred from Agent a borrowing (each a “Letter of Credit Borrowing”) in the amount of such drawing. Such
Letter of Credit Borrowing shall be due and payable on demand (together with interest) and shall bear interest at the rate per
annum applicable to a Revolving Advance maintained as a Domestic Rate Loan. Each Lender’s payment to Agent pursuant to Section
2.12(c) shall be deemed to be a payment in respect of its participation in such Letter of Credit Borrowing and shall constitute
a “Participation Advance” from such Lender in satisfaction of its Participation Commitment under this Section 2.12.

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(e)               
Each Lender’s Participation Commitment shall continue until the last to occur of any of the following events:
(x) Agent ceases to be obligated to issue or cause to be issued Letters of Credit hereunder; (y) no Letter of Credit
issued or created hereunder remains outstanding and uncancelled and (z) all Persons (other than the Borrowers) have been fully
reimbursed for all payments made under or relating to Letters of Credit.

2.13         
Repayment of Participation Advances.

(a)               
Upon (and only upon) receipt by Agent for its account of immediately available funds from Borrowers (i) in reimbursement
of any payment made by the Agent under the Letter of Credit with respect to which any Lender has made a Participation Advance to
Agent, or (ii) in payment of interest on such a payment made by Agent under such a Letter of Credit, Agent will pay to each
Lender, in the same funds as those received by Agent, the amount of such Lender’s Commitment Percentage of such funds, except
Agent shall retain the amount of the Commitment Percentage of such funds of any Lender that did not make a Participation Advance
in respect of such payment by Agent.

(b)              
If Agent is required at any time to return to any Borrower, or to a trustee, receiver, liquidator, custodian, or
any official in any insolvency proceeding, any portion of the payments made by Borrowers to Agent pursuant to Section 2.13(a) in
reimbursement of a payment made under the Letter of Credit or interest or fee thereon, each Lender shall, on demand of Agent, forthwith
return to Agent the amount of its Commitment Percentage of any amounts so returned by Agent plus interest at the Federal Funds
Effective Rate.

2.14         
Documentation. Each Borrower agrees to be bound by the terms of the Letter of Credit Application and by Agent’s
interpretations of any Letter of Credit issued on behalf of such Borrower and by Agent’s written regulations and customary
practices relating to letters of credit, though Agent’s interpretations may be different from such Borrower’s own.
In the event of a conflict between the Letter of Credit Application and this Agreement, this Agreement shall govern. It is understood
and agreed that, except in the case of gross negligence or willful misconduct (as determined by a court of competent jurisdiction
in a final non-appealable judgment), Agent shall not be liable for any error, negligence and/or mistakes, whether of omission
or commission, in following the Borrowing Agent’s or any Borrower’s instructions or those contained in the Letters
of Credit or any modifications, amendments or supplements thereto.

2.15         
Determination to Honor Drawing Request. In determining whether to honor any request for drawing under any
Letter of Credit by the beneficiary thereof, Agent shall be responsible only to determine that the documents and certificates
required to be delivered under such Letter of Credit have been delivered and that they comply on their face with the requirements
of such Letter of Credit and that any other drawing condition appearing on the face of such Letter of Credit has been satisfied
in the manner so set forth.

 

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2.16         
Nature of Participation and Reimbursement Obligations. Each Lender’s obligation in accordance with
this Agreement to make the Revolving Advances or Participation Advances as a result of a drawing under a Letter of Credit, and
the obligations of Borrowers to reimburse Agent upon a draw under a Letter of Credit, shall be absolute, unconditional and irrevocable,
and shall be performed strictly in accordance with the terms of this Section 2.16 under all circumstances, including the following
circumstances:

(i)                
any set-off, counterclaim, recoupment, defense or other right which such Lender may have against Agent, any Borrower
or any other Person for any reason whatsoever;

(ii)              
the failure of any Borrower or any other Person to comply, in connection with a Letter of Credit Borrowing, with
the conditions set forth in this Agreement for the making of a Revolving Advance, it being acknowledged that such conditions are
not required for the making of a Letter of Credit Borrowing and the obligation of the Lenders to make Participation Advances under
Section 2.12;

(iii)            
any lack of validity or enforceability of any Letter of Credit;

(iv)            
any claim of breach of warranty that might be made by Borrower or any Lender against the beneficiary of a Letter
of Credit, or the existence of any claim, set-off, recoupment, counterclaim, cross-claim, defense or other right which any Borrower
or any Lender may have at any time against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or
the proceeds thereof (or any Persons for whom any such transferee may be acting), Agent or any Lender or any other Person, whether
in connection with this Agreement, the transactions contemplated herein or any unrelated transaction (including any underlying
transaction between any Borrower or any Subsidiaries of such Borrower and the beneficiary for which any Letter of Credit was procured);

(v)              
the lack of power or authority of any signer of (or any defect in or forgery of any signature or endorsement on)
or the form of or lack of validity, sufficiency, accuracy, enforceability or genuineness of any draft, demand, instrument, certificate
or other document presented under or in connection with any Letter of Credit, or any fraud or alleged fraud in connection with
any Letter of Credit, or the transport of any property or provisions of services relating to a Letter of Credit, in each case even
if Agent or any of Agent’s Affiliates has been notified thereof;

(vi)            
payment by Agent under any Letter of Credit against presentation of a demand, draft or certificate or other document
which does not comply with the terms of such Letter of Credit;

(vii)          
the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or any other Person having
a role in any transaction or obligation relating to a Letter of Credit, or the existence, nature, quality, quantity, condition,
value or other characteristic of any property or services relating to a Letter of Credit;

(viii)        
any failure by the Agent or any of Agent’s Affiliates to issue any Letter of Credit in the form requested
by Borrowing Agent, unless the Agent has received written notice from Borrowing Agent of such failure within three (3) Business
Days after the Agent shall have furnished Borrowing Agent a copy of such Letter of Credit and such error is material and no drawing
has been made thereon prior to receipt of such notice;

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(ix)            
any Material Adverse Effect;

(x)              
any breach of this Agreement or any Other Document by any party thereto;

(xi)            
the occurrence or continuance of an insolvency proceeding with respect to any Borrower or any Guarantor;

(xii)          
the fact that a Default or Event of Default shall have occurred and be continuing;

(xiii)        
the fact that the Term shall have expired or this Agreement or the Obligations hereunder shall have been terminated;
and

(xiv)        
any other circumstance or happening whatsoever, whether or not similar to any of the foregoing.

2.17         
Indemnity. In addition to amounts payable as provided in Section 16.5, each Borrower hereby agrees to protect,
indemnify, pay and save harmless Agent and any of Agent’s Affiliates that have issued a Letter of Credit from and against
any and all claims, demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs, charges and expenses
(including reasonable fees, expenses and disbursements of counsel and allocated costs of internal counsel) which the Agent or
any of Agent’s Affiliates may incur or be subject to as a consequence, direct or indirect, of the issuance of any Letter
of Credit, other than as a result of (A) the gross negligence or willful misconduct of the Agent as determined by a final
and non-appealable judgment of a court of competent jurisdiction or (B) the wrongful dishonor by the Agent or any of Agent’s
Affiliates of a proper demand for payment made under any Letter of Credit, except if such dishonor resulted from any act or omission,
whether rightful or wrongful, of any present or future de jure or de facto Governmental Body (all such acts or omissions herein
called “Governmental Acts”).

2.18         
Liability for Acts and Omissions. As between Borrowers and Agent and Lenders, each Borrower assumes all risks
of the acts and omissions of, or misuse of the Letters of Credit by, the respective beneficiaries of such Letters of Credit. In
furtherance and not in limitation of the respective foregoing, Agent shall not be responsible for: (i) the form, validity,
sufficiency, accuracy, genuineness or legal effect of any document submitted by any party in connection with the application for
an issuance of any such Letter of Credit, even if it should in fact prove to be in any or all respects invalid, insufficient,
inaccurate, fraudulent or forged (even if Agent shall have been notified thereof); (ii) the validity or sufficiency of any
instrument transferring or assigning or purporting to transfer or assign any such Letter of Credit or the rights or benefits thereunder
or proceeds thereof, in whole or in part, which may prove to be invalid or ineffective for any reason; (iii) the failure
of the beneficiary of any such Letter of Credit, or any other party to which such Letter of Credit may be transferred, to comply
fully with any conditions required in order to draw upon such Letter of Credit or any other claim of any Borrower against any
beneficiary of such Letter of Credit, or any such transferee, or any dispute between or among any Borrower and any beneficiary
of any Letter of Credit or any such transferee; (iv) errors, omissions, interruptions or delays in transmission or delivery
of any messages, by mail, cable, facsimile, telex or otherwise, whether or not they be in cipher; (v) errors in interpretation
of technical terms; (vi) any loss or delay in the transmission or otherwise of any document required in order to make a drawing
under any such Letter of Credit or of the proceeds thereof; (vii) the misapplication by the beneficiary of any such Letter
of Credit of the proceeds of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond
the control of Agent, including any governmental acts, and none of the above shall affect or impair, or prevent the vesting of,
any of Agent’s rights or powers hereunder. Nothing in the preceding sentence shall relieve Agent from liability for Agent’s
gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment)
in connection with actions or omissions described in such clauses (i) through (viii) of such sentence. In no event shall Agent
or Agent’s Affiliates be liable to any Borrower for any indirect, consequential, incidental, punitive, exemplary or special
damages or expenses (including without limitation attorneys’ fees), or for any damages resulting from any change in the
value of any property relating to a Letter of Credit.

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Without limiting
the generality of the foregoing, Agent and each of its Affiliates (i) may rely on any oral or other communication believed
in good faith by Agent or such Affiliate to have been authorized or given by or on behalf of the applicant for a Letter of Credit,
(ii) may honor any presentation if the documents presented appear on their face substantially to comply with the terms and
conditions of the relevant Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit,
whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful dishonor, or otherwise, and
shall be entitled to reimbursement to the same extent as if such presentation had initially been honored, together with any interest
paid by Agent or its Affiliates; (iv) may honor any drawing that is payable upon presentation of a statement advising negotiation
or payment, upon receipt of such statement (even if such statement indicates that a draft or other document is being delivered
separately), and shall not be liable for any failure of any such draft or other document to arrive, or to conform in any way with
the relevant Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored under the laws
or practices of the place where such bank is located; and (vi) may settle or adjust any claim or demand made on Agent or its
Affiliate in any way related to any order issued at the applicant’s request to an air carrier, a letter of guarantee or of
indemnity issued to a carrier or any similar document (each an “Order”) and honor any drawing in connection
with any Letter of Credit that is the subject of such Order, notwithstanding that any drafts or other documents presented in connection
with such Letter of Credit fail to conform in any way with such Letter of Credit.

In furtherance
and extension and not in limitation of the specific provisions set forth above, any action taken or omitted by Agent under or
in connection with the Letters of Credit issued by it or any documents and certificates delivered thereunder, if taken or omitted
in good faith and without gross negligence (as determined by a court of competent jurisdiction in a final non-appealable judgment),
shall not put Agent under any resulting liability to any Borrower or any Lender. 

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2.19         
Additional Payments. Any sums expended by Agent or any Lender due to any Borrower’s failure to perform
or comply with its obligations under this Agreement or any Other Document including any Borrower’s obligations under Sections
4.2, 4.4, 4.12, 4.13, 4.14 and 6.1 hereof, may be charged to Borrowers’ Account as a Revolving Advance and added to the
Obligations.

2.20         
Manner of Borrowing and Payment

(a)               
Each borrowing of Revolving Advances shall be advanced according to the applicable Commitment Percentages of Lenders.
The Term Loan shall be advanced according to the Commitment Percentages of Lenders.

(b)              
Each payment (including each prepayment) by any Borrower on account of the principal of and interest on the Revolving
Advances, shall be applied to the Revolving Advances pro rata according to the applicable Commitment Percentages of Lenders. Each
payment (including each prepayment) by any Borrower on account of the principal of and interest on the Term Note, shall be made
from or to, or applied to that portion of the Term Loan evidenced by the Term Note pro rata according to the Commitment Percentages
of Lenders. Except as expressly provided herein, all payments (including prepayments) to be made by any Borrower on account of
principal, interest and fees shall be made without set off or counterclaim and shall be made to Agent on behalf of the Lenders
to the Payment Office, in each case on or prior to 1:00 P.M., New York time, in Dollars and in immediately available funds.

(c)               
(i)Notwithstanding anything to the contrary contained in Sections 2.20(a) and (b) hereof, commencing with the
first Business Day following the Closing Date, each borrowing of Revolving Advances shall be advanced by Agent and each payment
by any Borrower on account of Revolving Advances shall be applied first to those Revolving Advances advanced by Agent. On or before
1:00 P.M., New York time, on each Settlement Date commencing with the first Settlement Date following the Closing Date, Agent and
Lenders shall make certain payments as follows: (I) if the aggregate amount of new Revolving Advances made by Agent during
the preceding Week (if any) exceeds the aggregate amount of repayments applied to outstanding Revolving Advances during such preceding
Week, then each Lender shall provide Agent with funds in an amount equal to its applicable Commitment Percentage of the difference
between (w) such Revolving Advances and (x) such repayments and (II) if the aggregate amount of repayments applied
to outstanding Revolving Advances during such Week exceeds the aggregate amount of new Revolving Advances made during such Week,
then Agent shall provide each Lender with funds in an amount equal to its applicable Commitment Percentage of the difference between
(y) such repayments and (z) such Revolving Advances.

(ii)              
Each Lender shall be entitled to earn interest at the applicable Revolving Interest Rate on outstanding Advances
which it has funded.

(iii)            
Promptly following each Settlement Date, Agent shall submit to each Lender a certificate with respect to payments
received and Advances made during the Week immediately preceding such Settlement Date. Such certificate of Agent shall be conclusive
in the absence of manifest error.

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(d)              
If any Lender or Participant (a “benefited Lender”) shall at any time receive any payment of all
or part of its Advances, or interest thereon, or receive any Collateral in respect thereof (whether voluntarily or involuntarily
or by set-off) in a greater proportion than any such payment to and Collateral received by any other Lender, if any, in respect
of such other Lender’s Advances, or interest thereon, and such greater proportionate payment or receipt of Collateral is
not expressly permitted hereunder, such benefited Lender shall purchase for cash from the other Lenders a participation in such
portion of each such other Lender’s Advances, or shall provide such other Lender with the benefits of any such Collateral,
or the proceeds thereof, as shall be necessary to cause such benefited Lender to share the excess payment or benefits of such Collateral
or proceeds ratably with each of the other Lenders; provided, however, that if all or any portion of such excess payment or benefits
is thereafter recovered from such benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned,
to the extent of such recovery, but without interest. Each Lender so purchasing a portion of another Lender’s Advances may
exercise all rights of payment (including rights of set-off) with respect to such portion as fully as if such Lender were the direct
holder of such portion.

(e)               
Unless Agent shall have been notified by telephone, confirmed in writing, by any Lender that such Lender will not
make the amount which would constitute its applicable Commitment Percentage of the Advances available to Agent, Agent may (but
shall not be obligated to) assume that such Lender shall make such amount available to Agent on the next Settlement Date and, in
reliance upon such assumption, make available to Borrowers a corresponding amount. Agent will promptly notify Borrowing Agent of
its receipt of any such notice from a Lender. If such amount is made available to Agent on a date after such next Settlement Date,
such Lender shall pay to Agent on demand an amount equal to the product of (i) the daily average Federal Funds Rate (computed
on the basis of a year of 360 days) during such period as quoted by Agent, times (ii) such amount, times (iii) the number
of days from and including such Settlement Date to the date on which such amount becomes immediately available to Agent. A certificate
of Agent submitted to any Lender with respect to any amounts owing under this paragraph (e) shall be conclusive, in the absence
of manifest error. If such amount is not in fact made available to Agent by such Lender within three (3) Business Days after such
Settlement Date, Agent shall be entitled to recover such an amount, with interest thereon at the rate per annum then applicable
to such Revolving Advances hereunder, on demand from Borrowers; provided, however, that Agent’s right to such recovery shall
not prejudice or otherwise adversely affect Borrowers’ rights (if any) against such Lender.

2.21         
Mandatory Prepayments.

(a)               
Subject to Section 4.3 hereof, when any Borrower sells or otherwise disposes of any Collateral other than Inventory
in the Ordinary Course of Business, Borrowers shall repay the Advances in an amount equal to the net proceeds of such sale (i.e.,
gross proceeds less the reasonable costs of such sales or other dispositions), such repayments to be made promptly but in no event
more than one (1) Business Day following receipt of such net proceeds, and until the date of payment, such proceeds shall
be held in trust for Agent. The foregoing shall not be deemed to be implied consent to any such sale otherwise prohibited by the
terms and conditions hereof. Such repayments shall be applied first, to the outstanding principal installments of the Term
Loan in the inverse order of the maturities thereof and second, to the remaining Advances in such order as Agent may determine,
subject to Borrowers’ ability to reborrow Revolving Advances in accordance with the terms hereof.

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(b)              
At the election of Agent and Lenders, Borrowers shall prepay the outstanding amount of the Advances in an amount
equal to 50% of Excess Cash Flow for each fiscal year (not to exceed a prepayment of $500,000 for any fiscal year), commencing
with the fiscal year ending December 31, 2012 on a pro rata basis from the Closing Date, payable upon delivery of the financial
statements to Agent referred to in and required by Section 9.7 for such fiscal year but in any event not later than ninety (90)
days after the end of each such fiscal year. Any such prepayment amount shall be applied first, to the outstanding principal
installments of the Term Loan in the inverse order of the maturities thereof and second, to the remaining Advances in such
order as Agent may determine, subject to Borrowers’ ability to reborrow Revolving Advances in accordance with the terms hereof.
In the event that the financial statement is not so delivered, then a calculation based upon estimated amounts shall be made by
Agent, upon which calculation Borrowers shall make the prepayment required by this Section 2.21(b), subject to adjustment when
the financial statement is delivered to Agent as required hereby. The calculation made by Agent shall not be deemed a waiver of
any rights Agent or Lenders may have as a result of the failure by Borrowers to deliver such financial statement.

2.22         
Use of Proceeds.

(a)               
Borrowers shall apply the proceeds of Advances to (i) repay existing indebtedness owed to Great Western Bank,
(ii) finance the ongoing working capital and letter of credit needs of Borrowers, (iii) finance a portion of the capital
expenditures of Borrowers, and (iv) pay fees and transaction expenses.

(b)              
Without limiting the generality of Section 2.22(a) above, neither Borrowers, Guarantors nor any other Person which
may in the future become party to this Agreement or the Other Documents as a Borrower or Guarantor, intends to use nor shall they
use any portion of the proceeds of the Advances, directly or indirectly, for any purpose in violation of the Trading with the Enemy
Act.

2.23         
Defaulting Lender.

(a)               
Notwithstanding anything to the contrary contained herein, in the event any Lender (x) has refused (which refusal
constitutes a breach by such Lender of its obligations under this Agreement) to make available its portion of any Advance or (y) notifies
either Agent or Borrowing Agent that it does not intend to make available its portion of any Advance (if the actual refusal would
constitute a breach by such Lender of its obligations under this Agreement) (each, a “Lender Default”), all
rights and obligations hereunder of such Lender (a “Defaulting Lender”) as to which a Lender Default is in effect
and of the other parties hereto shall be modified to the extent of the express provisions of this Section 2.23 while such Lender
Default remains in effect.

(b)              
Advances shall be incurred pro rata from Lenders (the “Non-Defaulting Lenders”) which are not
Defaulting Lenders based on their respective Commitment Percentages, and no Commitment Percentage of any Lender or any pro rata
share of any Advances required to be advanced by any Lender shall be increased as a result of such Lender Default. Amounts received
in respect of principal of any type of Advances shall be applied to reduce the applicable Advances of each Lender (other than any
Defaulting Lender) pro rata based on the aggregate of the outstanding Advances of that type of all Lenders at the time of such
application; provided, that, Agent shall not be obligated to transfer to a Defaulting Lender any payments received by Agent for
the Defaulting Lender’s benefit, nor shall a Defaulting Lender be entitled to the sharing of any payments hereunder (including
any principal, interest or fees). Amounts payable to a Defaulting Lender shall instead be paid to or retained by Agent. Agent may
hold and, in its Permitted Discretion, re-lend to a Borrower the amount of such payments received or retained by it for the account
of such Defaulting Lender.

 

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(c)               
A Defaulting Lender shall not be entitled to give instructions to Agent or to approve, disapprove, consent to or
vote on any matters relating to this Agreement and the Other Documents. All amendments, waivers and other modifications of this
Agreement and the Other Documents may be made without regard to a Defaulting Lender and, for purposes of the definition of “Required
Lenders,” a Defaulting Lender shall be deemed not to be a Lender and not to have either Advances outstanding or a Commitment
Percentage.

(d)              
Other than as expressly set forth in this Section 2.23, the rights and obligations of a Defaulting Lender (including
the obligation to indemnify Agent) and the other parties hereto shall remain unchanged. Nothing in this Section 2.23 shall be deemed
to release any Defaulting Lender from its obligations under this Agreement and the Other Documents, shall alter such obligations,
shall operate as a waiver of any default by such Defaulting Lender hereunder, or shall prejudice any rights which any Borrower,
Agent or any Lender may have against any Defaulting Lender as a result of any default by such Defaulting Lender hereunder.

(e)               
In the event a Defaulting Lender retroactively cures to the satisfaction of Agent the breach which caused a Lender
to become a Defaulting Lender, such Defaulting Lender shall no longer be a Defaulting Lender and shall be treated as a Lender under
this Agreement.

		III.	INTEREST AND FEES.

3.1             
Interest. Interest on Advances shall be payable in arrears on the first day of each month with respect to
Domestic Rate Loans and, with respect to Eurodollar Rate Loans, at the end of each Interest Period. Interest charges shall be
computed on the actual principal amount of Advances outstanding during the month at a rate per annum equal to (i) with respect
to Revolving Advances, the applicable Revolving Interest Rate and (ii) with respect to the Term Loan, the applicable Term
Loan Rate (as applicable, the “Contract Rate”). Whenever, subsequent to the date of this Agreement, the Alternate
Base Rate is increased or decreased, the applicable Contract Rate shall be similarly changed without notice or demand of any kind
by an amount equal to the amount of such change in the Alternate Base Rate during the time such change or changes remain in effect.
The Eurodollar Rate shall be adjusted with respect to Eurodollar Rate Loans without notice or demand of any kind on the effective
date of any change in the Reserve Percentage as of such effective date. Upon and after the occurrence of an Event of Default,
and during the continuation thereof, at the option of Agent or at the direction of Required Lenders, the Obligations shall bear
interest at the applicable Contract Rate plus two (2%) percent per annum (the “Default Rate”).

 

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3.2             
Letter of Credit Fees.

(a)               
Borrowers shall pay (x) to Agent, for the ratable benefit of Lenders, fees for each Letter of Credit for the
period from and excluding the date of issuance of same to and including the date of expiration or termination, equal to the average
daily face amount of each outstanding Letter of Credit multiplied by three and one-quarter percent (3.25%) per annum, such fees
to be calculated on the basis of a 360-day year for the actual number of days elapsed and to be payable quarterly in arrears on
the first day of each quarter and on the last day of the Term, and (y) to the Issuer, a fronting fee of one quarter of one
percent (0.25%) per annum, together with any and all administrative, issuance, amendment, payment and negotiation charges with
respect to Letters of Credit and all fees and expenses as agreed upon by the Issuer and the Borrowing Agent in connection with
any Letter of Credit, including in connection with the opening, amendment or renewal of any such Letter of Credit and any acceptances
created thereunder and shall reimburse Agent for any and all fees and expenses, if any, paid by Agent to the Issuer (all of the
foregoing fees, the “Letter of Credit Fees”). All such charges shall be deemed earned in full on the date when
the same are due and payable hereunder and shall not be subject to rebate or pro-ration upon the termination of this Agreement
for any reason. Any such charge in effect at the time of a particular transaction shall be the charge for that transaction, notwithstanding
any subsequent change in the Issuer’s prevailing charges for that type of transaction. All Letter of Credit Fees payable
hereunder shall be deemed earned in full on the date when the same are due and payable hereunder and shall not be subject to rebate
or pro-ration upon the termination of this Agreement for any reason. Upon and after the occurrence of an Event of Default, and
during the continuation thereof, at the option of Agent or at the direction of Required Lenders, the Letter of Credit Fees described
in clause (x) of this Section 3.2(a) shall be increased by an additional two percent (2%) per annum.

On demand,
Borrowers will cause cash to be deposited and maintained in an account with Agent, as cash collateral, in an amount equal to one
hundred and five percent (105%) of the Maximum Undrawn Amount of all outstanding Letters of Credit, and each Borrower hereby irrevocably
authorizes Agent, in its Permitted Discretion, on such Borrower’s behalf and in such Borrower’s name, to open such
an account and to make and maintain deposits therein, or in an account opened by such Borrower, in the amounts required to be made
by such Borrower, out of the proceeds of Receivables or other Collateral or out of any other funds of such Borrower coming into
any Lender’s possession at any time. Agent will invest such cash collateral (less applicable reserves) in such short-term
money-market items as to which Agent and such Borrower mutually agree and the net return on such investments shall be credited
to such account and constitute additional cash collateral. No Borrower may withdraw amounts credited to any such account except
upon the occurrence of all of the following: (x) payment and performance in full of all Obligations, (y) expiration of
all Letters of Credit and (z) termination of this Agreement.

3.3             
Facility Fee. If, for any calendar quarter during the Term, the average daily unpaid balance of the Revolving
Advances and undrawn amount of any outstanding Letters of Credit for each day of such calendar quarter does not equal the Maximum
Revolving Advance Amount, then Borrowers shall pay to Agent for the ratable benefit of Lenders a fee at a rate equal to three-eighths
of one percent (.375%) per annum on the amount by which the Maximum Revolving Advance Amount exceeds such average daily unpaid
balance. Such fee shall be payable to Agent in arrears on the first day of each calendar quarter with respect to the previous
calendar quarter.

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3.4             
Fee Letter. Borrowers shall pay the amounts required to be paid in the Fee Letter in the manner and at the
times required by the Fee Letter.

3.5             
Computation of Interest and Fees. Interest and fees hereunder shall be computed on the basis of a year of
360 days and for the actual number of days elapsed. If any payment to be made hereunder becomes due and payable on a day other
than a Business Day, the due date thereof shall be extended to the next succeeding Business Day and interest thereon shall be
payable at the applicable Contract Rate during such extension.

3.6             
Maximum Charges. In no event whatsoever shall interest and other charges charged hereunder exceed the highest
rate permissible under law. In the event interest and other charges as computed hereunder would otherwise exceed the highest rate
permitted under law, such excess amount shall be first applied to any unpaid principal balance owed by Borrowers, and if the then
remaining excess amount is greater than the previously unpaid principal balance, Lenders shall promptly refund such excess amount
to Borrowers and the provisions hereof shall be deemed amended to provide for such permissible rate.

3.7             
Increased Costs. In the event that any Applicable Law, or any change therein or in the interpretation or application
thereof, or compliance by any Lender (for purposes of this Section 3.7, the term “Lender” shall include Agent or any
Lender and any corporation or bank controlling Agent or any Lender) and the office or branch where Agent or any Lender (as so
defined) makes or maintains any Eurodollar Rate Loans with any request or directive (whether or not having the force of law) from
any central bank or other financial, monetary or other authority, shall:

(a)               
subject Agent or any Lender to any tax of any kind whatsoever with respect to this Agreement or any Other Document
or change the basis of taxation of payments to Agent or any Lender of principal, fees, interest or any other amount payable hereunder
or under any Other Documents (except for changes in the rate of tax on the overall net income of Agent or any Lender by the jurisdiction
in which it maintains its principal office);

(b)              
impose, modify or hold applicable any reserve, special deposit, assessment or similar requirement against assets
held by, or deposits in or for the account of, advances or loans by, or other credit extended by, any office of Agent or any Lender,
including pursuant to Regulation D of the Board of Governors of the Federal Reserve System; or

(c)               
impose on Agent or any Lender or the London interbank Eurodollar market any other condition with respect to this
Agreement or any Other Document;

and the result of any of the
foregoing is to increase the cost to Agent or any Lender of making, renewing or maintaining its Advances hereunder by an amount
that Agent or such Lender deems to be material or to reduce the amount of any payment (whether of principal, interest or otherwise)
in respect of any of the Advances by an amount that Agent or such Lender deems (in its Permitted Discretion) to be material, then,
in any case Borrowers shall promptly pay Agent or such Lender, upon its demand, such additional amount as will compensate Agent
or such Lender for such additional cost or such reduction, as the case may be, provided that the foregoing shall not apply to
increased costs which are reflected in the Eurodollar Rate, as the case may be. Agent or such Lender shall certify the amount
of such additional cost or reduced amount to Borrowing Agent, and such certification shall be conclusive absent manifest error.

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3.8             
Basis For Determining Interest Rate Inadequate or Unfair. In the event that Agent or any Lender shall have
determined that:

(a)               
reasonable means do not exist for ascertaining the Eurodollar Rate applicable pursuant to Section 2.2 hereof for
any Interest Period; or

(b)              
Dollar deposits in the relevant amount and for the relevant maturity are not available in the London interbank Eurodollar
market, with respect to an outstanding Eurodollar Rate Loan, a proposed Eurodollar Rate Loan, or a proposed conversion of a Domestic
Rate Loan into a Eurodollar Rate Loan,

then Agent shall give Borrowing
Agent prompt written or telephonic notice of such determination. If such notice is given, (i) any such requested Eurodollar
Rate Loan shall be made as a Domestic Rate Loan, unless Borrowing Agent shall notify Agent no later than 10:00 a.m. (New York City
time) two (2) Business Days prior to the date of such proposed borrowing, that its request for such borrowing shall be cancelled
or made as an unaffected type of Eurodollar Rate Loan, (ii) any Domestic Rate Loan or Eurodollar Rate Loan which was to have
been converted to an affected type of Eurodollar Rate Loan shall be continued as or converted into a Domestic Rate Loan, or, if
Borrowing Agent shall notify Agent, no later than 10:00 a.m. (New York City time) two (2) Business Days prior to the proposed conversion,
shall be maintained as an unaffected type of Eurodollar Rate Loan, and (iii) any outstanding affected Eurodollar Rate Loans
shall be converted into a Domestic Rate Loan, or, if Borrowing Agent shall notify Agent, no later than 10:00 a.m. (New York City
time) two (2) Business Days prior to the last Business Day of the then current Interest Period applicable to such affected Eurodollar
Rate Loan, shall be converted into an unaffected type of Eurodollar Rate Loan, on the last Business Day of the then current Interest
Period for such affected Eurodollar Rate Loans. Until such notice has been withdrawn, Lenders shall have no obligation to make
an affected type of Eurodollar Rate Loan or maintain outstanding affected Eurodollar Rate Loans and no Borrower shall have the
right to convert a Domestic Rate Loan or an unaffected type of Eurodollar Rate Loan into an affected type of Eurodollar Rate Loan.

3.9             
Capital Adequacy.

(a)               
In the event that Agent or any Lender shall have determined that any Applicable Law or guideline regarding capital
adequacy, or any change therein, or any change in the interpretation or administration thereof by any Governmental Body, central
bank or comparable agency charged with the interpretation or administration thereof, or compliance by Agent or any Lender (for
purposes of this Section 3.9, the term “Lender” shall include Agent or any Lender and any corporation or bank controlling
Agent or any Lender) and the office or branch where Agent or any Lender (as so defined) makes or maintains any Eurodollar Rate
Loans 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 Agent or any Lender’s
capital as a consequence of its obligations hereunder to a level below that which Agent or such Lender could have achieved but
for such adoption, change or compliance (taking into consideration Agent’s and each Lender’s policies with respect
to capital adequacy) by an amount deemed by Agent or any Lender to be material, then, from time to time, Borrowers shall pay upon
demand to Agent or such Lender such additional amount or amounts as will compensate Agent or such Lender for such reduction. In
determining such amount or amounts, Agent or such Lender may use any reasonable averaging or attribution methods. The protection
of this Section 3.9 shall be available to Agent and each Lender regardless of any possible contention of invalidity or inapplicability
with respect to the Applicable Law or condition. 

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(b)              
A certificate of Agent or such Lender setting forth such amount or amounts as shall be necessary to compensate Agent
or such Lender with respect to Section 3.9(a) hereof when delivered to Borrowing Agent shall be conclusive absent manifest error.

3.10         
Gross Up for Taxes. If any Borrower shall be required by Applicable Law to withhold or deduct any taxes from
or in respect of any sum payable under this Agreement or any of the Other Documents to Agent, or any Lender, assignee of any Lender,
or Participant (each, individually, a “Payee” and collectively, the “Payees,” except to the extent that
a Lender is not subject to taxation in the United States and payments to such Lender are transmitted offshore unless such offshore
Lender is subject to the withholding requirements of Section 1441 of the Internal Revenue Code), (a) the sum payable to such
Payee or Payees, as the case may be, shall be increased as may be necessary so that, after making all required withholding or
deductions, the applicable Payee or Payees receives an amount equal to the sum it would have received had no such withholding
or deductions been made (the “Gross-Up Payment”), (b) such Borrower shall make such withholding or deductions,
and (c) such Borrower shall pay the full amount withheld or deducted to the relevant taxation authority or other authority
in accordance with Applicable Law. Notwithstanding the foregoing, no Borrower shall be obligated to make any portion of the Gross-Up
Payment that is attributable to any withholding or deductions that would not have been paid or claimed had the applicable Payee
or Payees properly claimed a complete exemption with respect thereto pursuant to Section 3.11 hereof.

3.11         
Withholding Tax Exemption.

(a)               
Each Payee that is not incorporated under the Laws of the United States of America or a state thereof (and, upon
the written request of Agent, each other Payee) agrees that it will deliver to Borrowing Agent and Agent two (2) duly completed
appropriate valid Withholding Certificates (as defined under §1.1441-1(c)(16) of the Income Tax Regulations (“Regulations”))
certifying its status (i.e., U.S. or foreign person) and, if appropriate, making a claim of reduced, or exemption from, U.S. withholding
tax on the basis of an income tax treaty or an exemption provided by the Code. The term “Withholding Certificate”
means a Form W-9; a Form W-8BEN; a Form W-8ECI; a Form W-8IMY and the related statements and certifications as required under
§1.1441-1(e)(2) and/or (3) of the Regulations; a statement described in §1.871-14(c)(2)(v) of the Regulations;
or any other certificates under the Code or Regulations that certify or establish the status of a payee or beneficial owner as
a U.S. or foreign person.

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(b)              
Each Payee required to deliver to Borrowing Agent and Agent a valid Withholding Certificate pursuant to Section 3.11(a)
hereof shall deliver such valid Withholding Certificate as follows: (A) each Payee which is a party hereto on the Closing
Date shall deliver such valid Withholding Certificate at least five (5) Business Days prior to the first date on which any interest
or fees are payable by any Borrower hereunder for the account of such Payee; (B) each Payee shall deliver such valid Withholding
Certificate at least five (5) Business Days before the effective date of such assignment or participation (unless Agent in its
Permitted Discretion shall permit such Payee to deliver such Withholding Certificate less than five (5) Business Days before such
date in which case it shall be due on the date specified by Agent). Each Payee which so delivers a valid Withholding Certificate
further undertakes to deliver to Borrowing Agent and Agent two (2) additional copies of such Withholding Certificate (or a successor
form) on or before the date that such Withholding Certificate expires or becomes obsolete or after the occurrence of any event
requiring a change in the most recent Withholding Certificate so delivered by it, and such amendments thereto or extensions or
renewals thereof as may be reasonably requested by Borrowing Agent or Agent.

(c)               
Notwithstanding the submission of a Withholding Certificate claiming a reduced rate of or exemption from U.S. withholding
tax required under Section 3.11(b) hereof, Agent shall be entitled to withhold United States federal income taxes at the full 30%
withholding rate if in its reasonable judgment it is required to do so under the due diligence requirements imposed upon a withholding
agent under §1.1441-7(b) of the Regulations. Further, Agent is indemnified under §1.1461-1(e) of the Regulations against
any claims and demands of any Payee for the amount of any tax it deducts and withholds in accordance with regulations under §1441
of the Code.

		IV.	COLLATERAL: GENERAL TERMS

4.1             
Security Interest in the Collateral. To secure the prompt payment and performance to Agent and each Lender
of the Obligations, each Borrower hereby assigns, pledges and grants to Agent for its benefit and for the ratable benefit of each
Lender a continuing security interest in and to and Lien on all of its Collateral, whether now owned or existing or hereafter
acquired or arising and wheresoever located. Each Borrower shall mark its books and records as may be necessary or appropriate
to evidence, protect and perfect Agent’s security interest and shall cause its financial statements to reflect such security
interest. Each Borrower shall promptly provide Agent with written notice of all commercial tort claims, such notice to contain
the case title together with the applicable court and a brief description of the claim(s). Upon delivery of each such notice,
such Borrower shall be deemed to hereby grant to Agent a security interest and lien in and to such commercial tort claims and
all proceeds thereof.

4.2             
Perfection of Security Interest. Each Borrower shall take all action that may be necessary or desirable,
or that Agent may request, so as at all times to maintain the validity, perfection, enforceability and priority of Agent’s
security interest in and Lien on the Collateral or to enable Agent to protect, exercise or enforce its rights hereunder and in
the Collateral, including, but not limited to, (i) immediately discharging all Liens other than Permitted Encumbrances, (ii) obtaining
Lien Waiver Agreements, (iii) delivering to Agent, endorsed or accompanied by such instruments of assignment as Agent may
specify, and stamping or marking, in such manner as Agent may specify, any and all chattel paper, instruments, letters of credits
and advices thereof and documents evidencing or forming a part of the Collateral, (iv) entering into warehousing, lockbox
and other custodial arrangements satisfactory to Agent, and (v) executing and delivering financing statements, control agreements,
instruments of pledge, mortgages, notices and assignments, in each case in form and substance satisfactory to Agent, relating
to the creation, validity, perfection, maintenance or continuation of Agent’s security interest and Lien under the Uniform
Commercial Code or other Applicable Law. By its signature hereto, each Borrower hereby authorizes Agent to file against such Borrower,
one or more financing, continuation or amendment statements pursuant to the Uniform Commercial Code in form and substance satisfactory
to Agent (which statements may have a description of collateral which is broader than that set forth herein). All charges, expenses
and fees Agent may incur in doing any of the foregoing, and any local taxes relating thereto, shall be charged to Borrowers’
Account as a Revolving Advance of a Domestic Rate Loan and added to the Obligations, or, at Agent’s option, shall be paid
to Agent for its benefit and for the ratable benefit of Lenders immediately upon demand.

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4.3             
Disposition of Collateral. Each Borrower will safeguard and protect all Collateral for Agent’s general
account and make no disposition thereof whether by sale, lease or otherwise except the disposition or transfer of damaged, obsolete
or worn-out Equipment in the Ordinary Course of Business during any fiscal year having an aggregate fair market value of not more
than $250,000 and only to the extent that (i) the proceeds of any such disposition are used to acquire replacement Equipment
which is subject to Agent’s first priority security interest or (ii) the proceeds of which are remitted to Agent to
be applied pursuant to Section 2.21.

4.4             
Preservation of Collateral. In addition to the rights and remedies set forth in Section 11.1 hereof, Agent:
(a) may at any time take such steps as Agent, in its Permitted Discretion, deems necessary to protect Agent’s interest
in and to preserve the Collateral, including the hiring of such security guards or the placing of other security protection measures
as Agent may deem appropriate; (b) may employ and maintain at any of any Borrower’s premises a custodian who shall
have full authority to do all acts necessary to protect Agent’s interests in the Collateral; (c) may lease warehouse
facilities to which Agent may move all or part of the Collateral; (d) may use any Borrower’s owned or leased lifts,
hoists, trucks and other facilities or equipment for handling or removing the Collateral; and (e) shall have, and is hereby
granted, a right of ingress and egress to the places where the Collateral is located, and may proceed over and through any of
Borrower’s owned or leased property. Each Borrower shall cooperate fully with all of Agent’s efforts to preserve the
Collateral and will take such actions to preserve the Collateral as Agent may direct. All of Agent’s expenses of preserving
the Collateral, including any expenses relating to the bonding of a custodian, shall be charged to Borrowers’ Account as
a Revolving Advance maintained as a Domestic Rate Loan and added to the Obligations.

4.5             
Ownership of Collateral.

(a)               
With respect to the Collateral, at the time the Collateral becomes subject to Agent’s security interest: (i) each
Borrower shall be the sole owner of and fully authorized and able to sell, transfer, pledge and/or grant a first priority security
interest in each and every item of its respective Collateral to Agent; and, except for Permitted Encumbrances the Collateral shall
be free and clear of all Liens and encumbrances whatsoever; (ii) each document and agreement executed by each Borrower or
delivered to Agent or any Lender in connection with this Agreement shall be true and correct in all respects; (iii) all signatures
and endorsements of each Borrower that appear on such documents and agreements shall be genuine and each Borrower shall have full
capacity to execute same; and (iv) each Borrower’s Equipment and Inventory shall be located as set forth on Schedule
4.5 and shall not be removed from such location(s) without the prior written consent of Agent except with respect to the sale
of Equipment to the extent permitted in Section 4.3 hereof or in the Ordinary Course of Business.

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(b)              
(i)There is no location at which any Borrower has any Equipment or other goods (except for rolling stock or goods
in transit) other than those locations listed on Schedule 4.5; (ii) Schedule 4.5 hereto contains a
correct and complete list, as of the Closing Date, of the legal names and addresses of each warehouse at which Inventory of any
Borrower is stored; none of the receipts received by any Borrower 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 such named Person’s assigns; (iii) Schedule
4.5 hereto sets forth a correct and complete list as of the Closing Date of (A) each place of business of each Borrower
and (B) the chief executive officer of each Borrower; and (iv) Schedule 4.5 hereto sets forth a correct and
complete list as of the Closing Date of the location, by state and street address, of all real property owned or leased by each
Borrower, together with the names and addresses of any landlords.

4.6              Defense
of Agent’s and Lenders’ Interests. Until (a) payment and performance in full of all of the Obligations
and (b) termination of this Agreement, Agent’s interests in the Collateral shall continue in full force and
effect. During such period no Borrower shall, without Agent’s prior written consent, pledge, sell (except Equipment to
the extent permitted in Section 4.3 hereof), assign, transfer, create or suffer to exist a Lien upon or encumber or
allow or suffer to be encumbered in any way except for Permitted Encumbrances, any part of the Collateral. Each Borrower
shall defend Agent’s interests in the Collateral against any and all Persons whatsoever. At any time following demand
by Agent for payment of all Obligations, Agent shall have the right to take possession of the indicia of the Collateral and
the Collateral in whatever physical form contained, including: labels, stationery, documents, instruments and advertising
materials. If Agent exercises this right to take possession of the Collateral, Borrowers shall, upon demand, assemble it in
the best manner possible and make it available to Agent at a place reasonably convenient to Agent. In addition, with respect
to all Collateral, Agent and Lenders shall be entitled to all of the rights and remedies set forth herein and further
provided by the Uniform Commercial Code or other Applicable Law. Each Borrower shall, and Agent may, at its option, instruct
all suppliers, carriers, forwarders, warehousers or others receiving or holding cash, checks, Inventory, documents or
instruments in which Agent holds a security interest to deliver same to Agent and/or subject to Agent’s order and if
they shall come into any Borrower’s possession, they, and each of them, shall be held by such Borrower in trust as
Agent’s trustee, and such Borrower will immediately deliver them to Agent in their original form together with any
necessary endorsement.

4.7             
Books and Records. Each Borrower shall (a) keep proper books of record and account in which full, true
and correct entries will be made of all dealings or transactions of or in relation to its business and affairs; (b) set up
on its books accruals with respect to all taxes, assessments, charges, levies and claims; and (c) on a reasonably current
basis set up on its books, from its earnings, allowances against doubtful Receivables, advances and investments and all other
proper accruals (including by reason of enumeration, accruals for premiums, if any, due on required payments and accruals for
depreciation, obsolescence, or amortization of properties), which should be set aside from such earnings in connection with its
business. All determinations pursuant to this subsection shall be made in accordance with, or as required by, GAAP consistently
applied in the opinion of such independent public accountant as shall then be regularly engaged by Borrowers.

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4.8             
Financial Disclosure. Each Borrower hereby irrevocably authorizes and directs all accountants and auditors
employed by such Borrower at any time during the Term to exhibit and deliver to Agent and each Lender copies of any of such Borrower’s
financial statements, trial balances or other accounting records of any sort in the accountant’s or auditor’s possession,
and to disclose to Agent and each Lender any information such accountants may have concerning such Borrower’s financial
status and business operations. Each Borrower hereby authorizes all Governmental Bodies to furnish to Agent and each Lender copies
of reports or examinations relating to such Borrower, whether made by such Borrower or otherwise; however, Agent and each Lender
will attempt to obtain such information or materials directly from such Borrower prior to obtaining such information or materials
from such accountants or Governmental Bodies.

4.9             
Compliance with Laws. Each Borrower shall comply in all material respects with all Applicable Laws with respect
to the Collateral or any part thereof or to the operation of such Borrower’s business the non-compliance with which could
reasonably be expected to have a Material Adverse Effect. The Collateral at all times shall be maintained in accordance with the
requirements of all insurance carriers which provide insurance with respect to the Collateral so that such insurance shall remain
in full force and effect.

4.10         
Inspection of Premises. At all reasonable times Agent and each Lender shall have full access to and the right
to audit, check, inspect and make abstracts and copies from each Borrower’s books, records, audits, correspondence and all
other papers relating to the Collateral and the operation of each Borrower’s business. Agent, any Lender and their agents
may enter upon any premises of any Borrower at any time during business hours and at any other reasonable time, and from time
to time, for the purpose of inspecting the Collateral and any and all records pertaining thereto and the operation of such Borrower’s
business.

4.11         
Insurance.The assets and properties of each Borrower at all times shall be maintained in accordance with
the requirements of all insurance carriers which provide insurance with respect to the assets and properties of such Borrower
so that such insurance shall remain in full force and effect. Each Borrower shall bear the full risk of any loss of any nature
whatsoever with respect to the Collateral. At each Borrower’s own cost and expense in amounts and with carriers acceptable
to Agent, each Borrower shall (a) keep all its insurable properties and properties in which such Borrower has an interest
insured against the hazards of fire, flood, sprinkler leakage, those hazards covered by extended coverage insurance and such other
hazards, and for such amounts, as is customary in the case of companies engaged in businesses similar to such Borrower’s
including business interruption insurance; (b) maintain a bond in such amounts as is customary in the case of companies engaged
in businesses similar to such Borrower insuring against larceny, embezzlement or other criminal misappropriation of insured’s
officers and employees who may either singly or jointly with others at any time have access to the assets or funds of such Borrower
either directly or through authority to draw upon such funds or to direct generally the disposition of such assets; (c) maintain
public and product liability insurance against claims for personal injury, death or property damage suffered by others; (d) maintain
all such worker’s compensation or similar insurance as may be required under the laws of any state or jurisdiction in which
such Borrower is engaged in business; (e) furnish Agent with (i) copies of all policies and evidence of the maintenance
of such policies by the renewal thereof at least thirty (30) days before any expiration date, and (ii) appropriate loss payable
endorsements in form and substance satisfactory to Agent, naming Agent as a co-insured and loss payee as its interests may appear
with respect to all insurance coverage referred to in clauses (a), and (c) above, and providing (A) that all proceeds thereunder
shall be payable to Agent, (B) no such insurance shall be affected by any act or neglect of the insured or owner of the property
described in such policy, and (C) that such policy and loss payable clauses may not be cancelled, amended or terminated unless
at least thirty (30) days’ prior written notice is given to Agent. In the event of any loss thereunder, the carriers named
therein hereby are directed by Agent and the applicable Borrower to make payment for such loss to Agent and not to such Borrower
and Agent jointly. If any insurance losses are paid by check, draft or other instrument payable to any Borrower and Agent jointly,
Agent may endorse such Borrower’s name thereon and do such other things as Agent may deem advisable to reduce the same to
cash. Agent is hereby authorized to adjust and compromise claims under insurance coverage referred to in clauses (a), and (b)
above. All loss recoveries received by Agent upon any such insurance may be applied to the Obligations, in such order as Agent
in its Permitted Discretion shall determine. Any surplus shall be paid by Agent to Borrowers or applied as may be otherwise required
by law. Any deficiency thereon shall be paid by Borrowers to Agent, on demand.

 

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4.12         
Failure to Pay Insurance. If any Borrower fails to obtain insurance as hereinabove provided, or to keep the
same in force, Agent, if Agent so elects, may obtain such insurance and pay the premium therefor on behalf of such Borrower, and
charge Borrowers’ Account therefor as a Revolving Advance of a Domestic Rate Loan and such expenses so paid shall be part
of the Obligations.

4.13         
Payment of Taxes. Each Borrower will pay, when due, all taxes, assessments and other Charges lawfully levied
or assessed upon such Borrower or any of the Collateral including real and personal property taxes, assessments and charges and
all franchise, income, employment, social security benefits, withholding, and sales taxes. If any tax by any Governmental Body
is or may be imposed on or as a result of any transaction between any Borrower and Agent or any Lender which Agent or any Lender
may be required to withhold or pay or if any taxes, assessments, or other Charges remain unpaid after the date fixed for their
payment, or if any claim shall be made which, in Agent’s or any Lender’s opinion, may possibly create a valid Lien
on the Collateral, Agent may without notice to Borrowers pay the taxes, assessments or other Charges and each Borrower hereby
indemnifies and holds Agent and each Lender harmless in respect thereof. Agent will not pay any taxes, assessments or Charges
to the extent that any applicable Borrower has Properly Contested those taxes, assessments or Charges. The amount of any payment
by Agent under this Section 4.13 shall be charged to Borrowers’ Account as a Revolving Advance maintained as a Domestic
Rate Loan and added to the Obligations and, until Borrowers shall furnish Agent with an indemnity therefor (or supply Agent with
evidence satisfactory to Agent that due provision for the payment thereof has been made), Agent may hold without interest any
balance standing to Borrowers’ credit and Agent shall retain its security interest in and Lien on any and all Collateral
held by Agent.

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For the purposes of this Section 4.13, the term “Charges” when capitalized shall mean all taxes, charges, fees,
imposts, levies or other assessments, including all net income, gross income, gross receipts, sales, use, ad valorem, value added,
transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment, social security, unemployment,
excise, severance, stamp, occupation and property taxes, custom duties, fees, assessments, liens, claims and charges of any kind
whatsoever, together with any interest and any penalties, additions to tax or additional amounts, imposed by any taxing or other
authority, domestic or foreign (including the Pension Benefit Guaranty Corporation or any environmental agency or superfund),
upon the Collateral, any Borrower or any of the consolidated subsidiaries of any Borrower.

4.14         
Payment of Leasehold Obligations. Each Borrower shall at all times pay, when and as due, its rental obligations
under all leases under which it is a tenant, and shall otherwise comply, in all material respects, with all other terms of such
leases and keep them in full force and effect and, at Agent’s request will provide evidence of having done so.

4.15         
Receivables.

(a)               
Nature of Receivables. Each of the Receivables shall be a bona fide and valid account representing a bona
fide indebtedness incurred by the Customer therein named, for a fixed sum as set forth in the invoice relating thereto (provided
immaterial or unintentional invoice errors shall not be deemed to be a breach hereof) with respect to an absolute sale or lease
and delivery of goods upon stated terms of a Borrower, or work, labor or services theretofore rendered by a Borrower as of the
date each Receivable is created. Same shall be due and owing in accordance with the applicable Borrower’s standard terms
of sale without dispute, setoff or counterclaim except as may be stated on the accounts receivable schedules delivered by Borrowers
to Agent.

(b)              
Solvency of Customers. Each Customer, to the best of each Borrower’s knowledge, as of the date each
Receivable is created, is and will be solvent and able to pay all Receivables on which the Customer is obligated in full when due
or with respect to such Customers of any Borrower who are not solvent such Borrower has set up on its books and in its financial
records bad debt reserves adequate to cover such Receivables.

(c)               
Location of Borrowers. Each Borrower’s chief executive office is located at 501 South Cherry Street,
Suite 320, Denver, Colorado 80246. Until written notice is given to Agent by Borrowing Agent of any other office at which any Borrower
keeps its records pertaining to Receivables, all such records shall be kept at such executive office.

(d)              
Collection of Receivables. Until any Borrower’s authority to do so is terminated by Agent (which notice
Agent may give at any time following the occurrence of an Event of Default or a Default or when Agent in its Permitted Discretion
deems it to be in Lenders’ best interest to do so), each Borrower will, at such Borrower’s sole cost and expense,
but on Agent’s behalf and for Agent’s account, collect as Agent’s property and in trust for Agent all amounts
received on Receivables, and shall not commingle such collections with any Borrower’s funds or use the same except to pay
Obligations. Each Borrower shall deposit in the Blocked Account or, upon request by Agent, deliver to Agent, in original form
and on the date of receipt thereof, all checks, drafts, notes, money orders, acceptances, cash and other evidences of Indebtedness.

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(e)               
Notification of Assignment of Receivables. At any time following the occurrence of an Event of Default or
a Default, Agent shall have the right to send notice of the assignment of, and Agent’s security interest in and Lien on,
the Receivables to any and all Customers or any third party holding or otherwise concerned with any of the Collateral. Thereafter,
Agent shall have the sole right to collect the Receivables, take possession of the Collateral, or both. Agent’s actual collection
expenses, including, but not limited to, stationery and postage, telephone and telegraph, secretarial and clerical expenses and
the salaries of any collection personnel used for collection, may be charged to Borrowers’ Account and added to the Obligations.

(f)               
Power of Agent to Act on Borrowers’ Behalf. Agent shall have the right to receive, endorse, assign
and/or deliver in the name of Agent or any Borrower any and all checks, drafts and other instruments for the payment of money
relating to the Receivables, and each Borrower hereby waives notice of presentment, protest and non-payment of any instrument
so endorsed. Each Borrower hereby constitutes Agent or Agent’s designee as such Borrower’s attorney with power (i) to
endorse such Borrower’s name upon any notes, acceptances, checks, drafts, money orders or other evidences of payment or
Collateral; (ii) upon the occurrence and during the continuation of an Event of Default, to sign such Borrower’s name
on any invoice or bill of lading relating to any of the Receivables, drafts against Customers, or assignments of Receivables;
(iii) to send verifications of Receivables to any Customer; (iv) to sign such Borrower’s name on all documents
or instruments deemed necessary or appropriate by Agent to preserve, protect, or perfect Agent’s interest in the Collateral
and to file same; (v) upon the occurrence and during the continuation of an Event of Default, to demand payment of the Receivables;
(vi) upon the occurrence and during the continuation of an Event of Default, to enforce payment of the Receivables by legal
proceedings or otherwise; (vii) upon the occurrence and during the continuation of an Event of Default, to exercise all of
such Borrower’s rights and remedies with respect to the collection of the Receivables and any other Collateral; (viii) upon
the occurrence and during the continuation of an Event of Default, to settle, adjust, compromise, extend or renew the Receivables;
(ix) upon the occurrence and during the continuation of an Event of Default, to settle, adjust or compromise any legal proceedings
brought to collect Receivables; (x) upon the occurrence and during the continuation of an Event of Default, to prepare, file
and sign such Borrower’s name on a proof of claim in bankruptcy or similar document against any Customer; (xi) upon
the occurrence and during the continuation of an Event of Default, to prepare, file and sign such Borrower’s name on any
notice of Lien, assignment or satisfaction of Lien or similar document in connection with the Receivables; and (xii) to do
all other acts and things necessary to carry out this Agreement. All acts of said attorney or designee are hereby ratified and
approved, and said attorney or designee shall not be liable for any acts of omission or commission nor for any error of judgment
or mistake of fact or of law, unless done maliciously or with gross (not mere) negligence (as determined by a court of competent
jurisdiction in a final non-appealable judgment); this power being coupled with an interest is irrevocable while any of the Obligations
remain unpaid. Agent shall have the right at any time following the occurrence of an Event of Default or Default, to change the
address for delivery of mail addressed to any Borrower to such address as Agent may designate and to receive, open and dispose
of all mail addressed to any Borrower.

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(g)              
No Liability. Neither Agent nor any Lender shall, under any circumstances or in any event whatsoever, have
any liability for any error or omission or delay of any kind occurring in the settlement, collection or payment of any of the Receivables
or any instrument received in payment thereof, or for any damage resulting therefrom. Following the occurrence of an Event of Default
or Default, Agent may, without notice or consent from any Borrower, sue upon or otherwise collect, extend the time of payment of,
compromise or settle for cash, credit or upon any terms any of the Receivables or any other securities, instruments or insurance
applicable thereto and/or release any obligor thereof. Agent is authorized and empowered to accept following the occurrence of
an Event of Default or Default the return of the goods represented by any of the Receivables, without notice to or consent by any
Borrower, all without discharging or in any way affecting any Borrower’s liability hereunder.

(h)              
Establishment of a Lockbox Account, Dominion Account. All proceeds of Collateral shall be deposited by Borrowers
into either (i) a lockbox account, dominion account or such other “blocked account” (“Blocked Accounts”)
established at a bank or banks (each such bank, a “Blocked Account Bank”) pursuant to an arrangement with such
Blocked Account Bank as may be selected by Borrowing Agent and be acceptable to Agent or (ii) depository accounts (“Depository
Accounts”) established at the Agent for the deposit of such proceeds. Each applicable Borrower, Agent and each Blocked
Account Bank shall enter into a deposit account control agreement in form and substance satisfactory to Agent directing such Blocked
Account Bank to transfer such funds so deposited to Agent, either to any account maintained by Agent at said Blocked Account Bank
or by wire transfer to appropriate account(s) of Agent. All funds deposited in such Blocked Accounts shall immediately become the
property of Agent and Borrowing Agent shall obtain the agreement by such Blocked Account Bank to waive any offset rights against
the funds so deposited. Neither Agent nor any Lender assumes any responsibility for such blocked account arrangement, including
any claim of accord and satisfaction or release with respect to deposits accepted by any Blocked Account Bank thereunder. All deposit
accounts and investment accounts of each Borrower and its Subsidiaries are set forth on Schedule 4.15(h).

(i)                
Adjustments. No Borrower will, without Agent’s consent, compromise or adjust any material amount of
the Receivables (or extend the time for payment thereof) or accept any material returns of merchandise or grant any additional
discounts, allowances or credits thereon except for those compromises, adjustments, returns, discounts, credits and allowances
as have been heretofore customary in the business of such Borrower.

4.16         
Inventory. To the extent Inventory held for sale or lease has been produced by any Borrower, it has been
and will be produced by such Borrower in accordance with the Federal Fair Labor Standards Act of 1938, as amended, and all rules,
regulations and orders thereunder.

4.17         
Maintenance of Equipment. The Equipment shall be maintained in good operating condition and repair (reasonable
wear and tear excepted) and all necessary replacements of and repairs thereto shall be made so that the value and operating efficiency
of the Equipment shall be maintained and preserved. No Borrower shall use or operate the Equipment in violation of any law, statute,
ordinance, code, rule or regulation. Each Borrower shall have the right to sell Equipment to the extent set forth in Section 4.3
hereof.

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4.18         
Exculpation of Liability. Nothing herein contained shall be construed to constitute Agent or any Lender as
any Borrower’s agent for any purpose whatsoever, nor shall Agent or any Lender be responsible or liable for any shortage,
discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may be located and regardless of the
cause thereof. Neither Agent nor any Lender, whether by anything herein or in any assignment or otherwise, assume any of any Borrower’s
obligations under any contract or agreement assigned to Agent or such Lender, and neither Agent nor any Lender shall be responsible
in any way for the performance by any Borrower of any of the terms and conditions thereof.

4.19         
Environmental Matters.

(a)               
Borrowers shall ensure that the Real Property and all operations and businesses conducted thereon remains in compliance
with all Environmental Laws and they shall not place or permit to be placed any Hazardous Substances on any Real Property except
as permitted by Applicable Law or appropriate governmental authorities.

(b)              
Borrowers shall establish and maintain a system to assure and monitor continued compliance with all applicable Environmental
Laws which system shall include periodic reviews of such compliance.

(c)               
Borrowers shall (i) employ in connection with the use of the Real Property appropriate technology necessary
to maintain compliance with any applicable Environmental Laws and (ii) dispose of any and all Hazardous Waste generated at
the Real Property only at facilities and with carriers that maintain valid permits under RCRA and any other applicable Environmental
Laws. Borrowers shall use their best efforts to obtain certificates of disposal, such as hazardous waste manifest receipts, from
all treatment, transport, storage or disposal facilities or operators employed by Borrowers in connection with the transport or
disposal of any Hazardous Waste generated at the Real Property.

(d)              
In the event any Borrower obtains, gives or receives notice of any Release or threat of Release of a reportable
quantity of any Hazardous Substances at the Real Property (any such event being hereinafter referred to as a “Hazardous
Discharge”) or receives any notice of violation, request for information or notification that it is potentially responsible
for investigation or cleanup of environmental conditions at the Real Property, demand letter or complaint, order, citation, or
other written notice with regard to any Hazardous Discharge or violation of Environmental Laws affecting the Real Property or
any Borrower’s interest therein (any of the foregoing is referred to herein as an “Environmental Complaint”)
from any Person, including any state agency responsible in whole or in part for environmental matters in the state in which the
Real Property is located or the United States Environmental Protection Agency (any such person or entity hereinafter the “Authority”),
then Borrowing Agent shall, within five (5) Business Days, give written notice of same to Agent detailing facts and circumstances
of which any Borrower is aware giving rise to the Hazardous Discharge or Environmental Complaint. Such information is to be provided
to allow Agent to protect its security interest in and Lien on the Real Property and the Collateral and is not intended to create
nor shall it create any obligation upon Agent or any Lender with respect thereto.

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(e)               
Borrowing Agent shall promptly forward to Agent copies of any request for information, notification of potential
liability, demand letter relating to potential responsibility with respect to the investigation or cleanup of Hazardous Substances
at any other site owned, operated or used by any Borrower to dispose of Hazardous Substances and shall continue to forward copies
of correspondence between any Borrower and the Authority regarding such claims to Agent until the claim is settled. Borrowing Agent
shall promptly forward to Agent copies of all documents and reports concerning a Hazardous Discharge at the Real Property that
any Borrower is required to file under any Environmental Laws. Such information is to be provided solely to allow Agent to protect
Agent’s security interest in and Lien on the Real Property and the Collateral.

(f)               
Borrowers shall respond promptly to any Hazardous Discharge or Environmental Complaint and take all necessary action
in order to safeguard the health of any Person and to avoid subjecting the Collateral or Real Property to any Lien. If any Borrower
shall fail to respond promptly to any Hazardous Discharge or Environmental Complaint or any Borrower shall fail to comply with
any of the requirements of any Environmental Laws, Agent on behalf of Lenders may, but without the obligation to do so, for the
sole purpose of protecting Agent’s interest in the Collateral: (A) give such notices or (B) enter onto the Real
Property (or authorize third parties to enter onto the Real Property) and take such actions as Agent (or such third parties as
directed by Agent) deem reasonably necessary or advisable, to clean up, remove, mitigate or otherwise deal with any such Hazardous
Discharge or Environmental Complaint. All reasonable costs and expenses incurred by Agent and Lenders (or such third parties) in
the exercise of any such rights, including any sums paid in connection with any judicial or administrative investigation or proceedings,
fines and penalties, together with interest thereon from the date expended at the Default Rate for Domestic Rate Loans constituting
Revolving Advances shall be paid upon demand by Borrowers, and until paid shall be added to and become a part of the Obligations
secured by the Liens created by the terms of this Agreement or any other agreement between Agent, any Lender and any Borrower.

(g)              
Promptly upon the written request of Agent from time to time, Borrowers shall provide Agent, at Borrowers’
expense, with an environmental site assessment or environmental audit report prepared by an environmental engineering firm acceptable
in the reasonable opinion of Agent, to assess with a reasonable degree of certainty the existence of a Hazardous Discharge and
the potential costs in connection with abatement, cleanup and removal of any Hazardous Substances found on, under, at or within
the Real Property. Any report or investigation of such Hazardous Discharge proposed and acceptable to an appropriate Authority
that is charged to oversee the clean-up of such Hazardous Discharge shall be acceptable to Agent. If such estimates, individually
or in the aggregate, exceed $100,000, Agent shall have the right to require Borrowers to post a bond, letter of credit or other
security reasonably satisfactory to Agent to secure payment of these costs and expenses.

(h)              
Borrowers shall defend and indemnify Agent and Lenders and hold Agent, Lenders and their respective employees, agents,
directors and officers harmless from and against all loss, liability, damage and expense, claims, costs, fines and penalties,
including attorney’s fees, suffered or incurred by Agent or Lenders under or on account of any Environmental Laws, including
the assertion of any Lien thereunder, with respect to any Hazardous Discharge, the presence of any Hazardous Substances affecting
the Real Property, whether or not the same originates or emerges from the Real Property or any contiguous real estate, including
any loss of value of the Real Property as a result of the foregoing except to the extent such loss, liability, damage and expense
is attributable to any Hazardous Discharge resulting from actions on the part of Agent or any Lender. Borrowers’ obligations
under this Section 4.19 shall arise upon the discovery of the presence of any Hazardous Substances at the Real Property, whether
or not any federal, state, or local environmental agency has taken or threatened any action in connection with the presence of
any Hazardous Substances. Borrowers’ obligation and the indemnifications hereunder shall survive the termination of this
Agreement.

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(i)                
For purposes of Section 4.19 and 5.7, all references to Real Property shall be deemed to include all of each Borrower’s
right, title and interest in and to its owned and leased premises.

4.20         
Financing Statements. Except as respects the financing statements filed by Agent and the financing statements
described on Schedule no financing statement covering any of the Collateral or any proceeds thereof is on file in any public office.

4.21         
Appraisals. Borrowers shall cooperate with internal or outside Equipment appraisers engaged by Agent for
the purpose of conducting appraisals of the Equipment of the Borrowers, in form and substance acceptable to Agent in its Permitted
Discretion, from an appraiser, acceptable to Agent in its Permitted Discretion. Agent may commission such Equipment appraisals
with such frequency as Agent may elect in its Permitted Discretion; provided, however, that prior to the occurrence and continuation
of an Event of Default, Borrowers shall be obligated to reimburse Agent for the cost of only one (1) full and one (1) “desktop”
Equipment appraisal in any year of the Term.

		V.	REPRESENTATIONS AND WARRANTIES.

 

Each Borrower
represents and warrants as follows:

5.1             
Authority. Each Borrower has full power, authority and legal right to enter into this Agreement and the Other
Documents and to perform all its respective Obligations hereunder and thereunder. This Agreement and the Other Documents have
been duly executed and delivered by each Borrower, and this Agreement and the Other Documents constitute the legal, valid and
binding obligation of such Borrower enforceable in accordance with their terms, except as such enforceability may be limited by
any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights generally. The execution,
delivery and performance of this Agreement and of the Other Documents (a) are within such Borrower’s corporate or limited
liability company powers, have been duly authorized by all necessary corporate or company action, are not in contravention of
law or the terms of such Borrower’s by-laws, certificate or articles of incorporation, operating agreement, certificate
of formation or other applicable documents relating to such Borrower’s formation or to the conduct of such Borrower’s
business or of any material agreement or undertaking to which such Borrower is a party or by which such Borrower is bound, (b) will
not conflict with or violate any law or regulation, or any judgment, order or decree of any Governmental Body, (c) will not
require the Consent of any Governmental Body or any other Person, except those Consents set forth on Schedule 5.1
hereto, all of which will have been duly obtained, made or compiled prior to the Closing Date and which are in full force and
effect and (d) will not conflict with, nor result in any breach in any of the provisions of or constitute a default under
or result in the creation of any Lien except Permitted Encumbrances upon any asset of such Borrower under the provisions of any
agreement, charter document, instrument, by-law, operating agreement or other instrument to which such Borrower is a party or
by which it or its property is a party or by which it may be bound.

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5.2             
Formation and Qualification.

(a)               
Each Borrower is duly incorporated formed and in good standing under the laws of the state listed on Schedule
5.2(a) and is qualified to do business and is in good standing in the states listed on Schedule 5.2(a) which constitute
all states in which qualification and good standing are necessary for such Borrower to conduct its business and own its property
and where the failure to so qualify could reasonably be expected to have a Material Adverse Effect. Each Borrower has delivered
to Agent true and complete copies of its certificate of incorporation and by-laws or certificate of formation and operating agreement,
as applicable, and will promptly notify Agent of any amendment or changes thereto.

(b)              
The only Subsidiaries of Borrowers are listed on Schedule 5.2(b).

5.3              Survival
of Representations and Warranties. All representations and warranties of such Borrower contained in this Agreement and
the Other Documents shall be true in all material respects at the time of such Borrower’s execution of this Agreement
and the Other Documents, and shall survive the execution, delivery and acceptance thereof by the parties thereto and the
closing of the transactions described therein or related thereto.

5.4              Tax
Returns.  Each Borrower’s federal tax identification number is set forth on Schedule 5.4. Each Borrower has
filed all federal, state and local tax returns and other reports each is required by law to file and has paid all taxes,
assessments, fees and other governmental charges that are due and payable. Federal, state and local income tax returns of
each Borrower have been examined and reported upon by the appropriate taxing authority or closed by applicable statute
and satisfied for all fiscal years prior to and including the fiscal year ending December 31, 2012. The provision for
taxes on the books of each Borrower is adequate for all years not closed by applicable statutes, and for its current fiscal
year, and no Borrower has any knowledge of any deficiency or additional assessment in connection therewith not provided for
on its books.

5.5              Financial
Statements. The consolidated balance sheets of Enservco as included in Enservco’s reports filed with the SEC for
the year ended December 31, 2011, and the related statements of income, changes in stockholder’s equity, and changes in
cash flow for the period ended on such date, all accompanied by reports thereon containing opinions without qualification by
independent certified public accountants, copies of which have been delivered to Agent and are available at www.sec.gov, have
been prepared in accordance with GAAP, consistently applied (except for changes in application in which such
accountants concur) and present fairly the financial position of Borrowers at such date and the results of their operations
for such period. Since December 31, 2011, there has been no material adverse change in the condition, financial or
otherwise, of Borrowers on a Consolidated Basis as shown on the consolidated balance sheet as of such date and no material
adverse change in the aggregate value of machinery, equipment and real property owned by Borrowers on a Consolidated Basis,
except changes in the Ordinary Course of Business, none of which individually or in the aggregate has been materially adverse
which have been reflected on the financial statements subsequently filed with the SEC.

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5.6              Entity
Names. No Borrower has been known by any other corporate name in the past five years and does not sell Inventory under
any other name except as set forth on Schedule 5.6, nor has any Borrower been the surviving corporation or company of
a merger or consolidation or acquired all or substantially all of the assets of any Person during the preceding five (5)
years except that Enservco was known as Aspen Exploration Corporation until the effectiveness of its name change to
Enservco on December 30, 2010.

5.7             
O.S.H.A. and Environmental Compliance.

(a)               
Each Borrower has duly complied with, and its facilities, business, assets, property, leaseholds, Real Property and
Equipment are in compliance in all material respects with, the provisions of the Federal Occupational Safety and Health Act, the
Environmental Protection Act, RCRA and all other Environmental Laws; there have been no outstanding citations, notices or orders
of non-compliance issued to any Borrower or relating to its business, assets, property, leaseholds or Equipment under any such
laws, rules or regulations.

(b)              
Each Borrower has been issued all required federal, state and local licenses, certificates or permits relating to
all applicable Environmental Laws.

(c)               
(i) There are no visible signs of releases, spills, discharges, leaks or disposal (collectively referred to
as “Releases”) of Hazardous Substances at, upon, under or within any Real Property or any premises leased by
any Borrower; (ii) there are no underground storage tanks or polychlorinated biphenyls on any premises leased or owned by
any Borrower; (iii) no premises leased or owned by any Borrower has ever been used as a treatment, storage or disposal facility
of Hazardous Waste; and (iv) no Hazardous Substances are present on any premises leased or owned by any Borrower, excepting
such quantities as are handled in accordance with all applicable manufacturer’s instructions and governmental regulations
and in proper storage containers and as are necessary for the operation of the commercial business of any Borrower or of its tenants.

5.8             
Solvency; No Litigation, Violation, Indebtedness or Default.

(a)               
Each Borrower is solvent, is able to pay its debts as they mature, has capital sufficient to carry on its business
and all businesses in which it is about to engage, and (i) as of the Closing Date, the fair present saleable value of the
assets of each Borrower, calculated on a going concern basis, is in excess of the amount of the liabilities of such Borrower and
(ii) subsequent to the Closing Date, the fair saleable value of the assets of each Borrower (calculated on a going concern
basis) will be in excess of the amount of the liabilities of such Borrower.

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(b)              
Except as disclosed in Schedule 5.8(b), no Borrower has (i) any pending or threatened litigation, arbitration,
actions or proceedings which involve the possibility of having a Material Adverse Effect, and (ii) any liabilities or indebtedness
for borrowed money other than the Obligations.

(c)               
No Borrower is in violation of any applicable statute, law, rule, regulation or ordinance in any respect which could
reasonably be expected to have a Material Adverse Effect, nor is any Borrower in violation of any order of any court, Governmental
Body or arbitration board or tribunal.

(d)              
No Borrower nor any member of the Controlled Group maintains or contributes to any Plan other than (i) as of
the Closing Date, those listed on Schedule 5.8(d) hereto and (ii) thereafter, as permitted under this Agreement. (i) No
Plan has incurred any “accumulated funding deficiency,” as defined in Section 302(a)(2) of ERISA and Section 412(a)
of the Code, whether or not waived, and each Borrower and each member of the Controlled Group has met all applicable minimum funding
requirements under Section 302 of ERISA in respect of each Plan; (ii) each Plan which is intended to be a qualified plan under
Section 401(a) of the Code as currently in effect has been determined by the Internal Revenue Service to be qualified under Section
401(a) of the Code and the trust related thereto is exempt from federal income tax under Section 501(a) of the Code; (iii) neither
any Borrower nor any member of the Controlled Group has incurred any liability to the PBGC other than for the payment of premiums,
and there are no premium payments which have become due which are unpaid; (iv) no Plan has been terminated by the plan administrator
thereof nor by the PBGC, and there is no occurrence which would cause the PBGC to institute proceedings under Title IV of ERISA
to terminate any Plan; (v) at this time, the current value of the assets of each Plan exceeds the present value of the accrued
benefits and other liabilities of such Plan and neither any Borrower nor any member of the Controlled Group knows of any facts
or circumstances which would materially change the value of such assets and accrued benefits and other liabilities; (vi) neither
any Borrower nor any member of the Controlled Group has breached any of the responsibilities, obligations or duties imposed on
it by ERISA with respect to any Plan; (vii) neither any Borrower nor any member of a Controlled Group has incurred any liability
for any excise tax arising under Section 4972 or 4980B of the Code, and no fact exists which could give rise to any such liability;
(viii) neither any Borrower nor any member of the Controlled Group nor any fiduciary of, nor any trustee to, any Plan, has
engaged in a “prohibited transaction” described in Section 406 of the ERISA or Section 4975 of the Code nor taken any
action which would constitute or result in a Termination Event with respect to any such Plan which is subject to ERISA; (ix) each
Borrower and each member of the Controlled Group has made all contributions due and payable with respect to each Plan; (x) there
exists no event described in Section 4043(b) of ERISA, for which the thirty (30) day notice period has not been waived; (xi) neither
any Borrower nor any member of the Controlled Group has any fiduciary responsibility for investments with respect to any plan existing
for the benefit of persons other than employees or former employees of any Borrower and any member of the Controlled Group; (xii) neither
any Borrower nor any member of the Controlled Group maintains or contributes to any Plan which provides health, accident or life
insurance benefits to former employees, their spouses or dependents, other than in accordance with Section 4980B of the Code; (xiii) neither
any Borrower nor any member of the Controlled Group has withdrawn, completely or partially, from any Multiemployer Plan so as to
incur liability under the Multiemployer Pension Plan Amendments Act of 1980 and there exists no fact which would reasonably be
expected to result in any such liability; and (xiv) no Plan fiduciary (as defined in Section 3(21) of ERISA) has any liability
for breach of fiduciary duty or for any failure in connection with the administration or investment of the assets of a Plan.

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5.9              Patents,
Trademarks, Copyrights and Licenses. All patents, patent applications, trademarks, trademark applications, service marks,
service mark applications, copyrights, copyright applications, design rights, tradenames, assumed names, trade secrets and
licenses owned or utilized by any Borrower that are material to the Business of any Borrower are set forth on Schedule 5.9,
are valid and have been duly registered or filed with all appropriate Governmental Bodies and constitute all of the
intellectual property rights which are necessary for the operation of its business; there is no objection to or pending
challenge to the validity of any such patent, trademark, copyright, design rights, tradename, trade secret or license and no
Borrower is aware of any grounds for any challenge, except as set forth in Schedule 5.9 hereto. Each patent,
patent application, patent license, trademark, trademark application, trademark license, service mark, service mark
application, service mark license, design rights, copyright, copyright application and copyright license owned or held by any
Borrower and all trade secrets used by any Borrower consist of original material or property developed by such Borrower or
was lawfully acquired by such Borrower from the proper and lawful owner thereof. Each of such items has been maintained so as
to preserve the value thereof from the date of creation or acquisition thereof. With respect to all software used by any
Borrower, such Borrower is in possession of all source and object codes related to each piece of software or is the
beneficiary of a source code escrow agreement, each such source code escrow agreement being listed on Schedule 5.9
hereto.

5.10          Licenses
and Permits. Except as set forth in Schedule 5.10, each Borrower (a) is in compliance with and (b) has
procured and is now in possession of, all material licenses or permits required by any applicable federal, state or local
law, rule or regulation for the operation of its business in each jurisdiction wherein it is now conducting or proposes to
conduct business and where the failure to procure such licenses or permits could have a Material Adverse Effect.

5.11          Default
of Indebtedness. No Borrower is in default in the payment of the principal of or interest on any Indebtedness or under
any instrument or agreement under or subject to which any Indebtedness has been issued and no event has occurred under the
provisions of any such instrument or agreement which with or without the lapse of time or the giving of notice, or both,
constitutes or would constitute an event of default thereunder, in either case which default would have a Material Adverse
Effect.

5.12          No
Default. No Borrower is in default in the payment or performance of any of its contractual obligations and no Default has
occurred which default would have a Material Adverse Effect.

5.13          No
Burdensome Restrictions. No Borrower is party to any contract or agreement the performance of which could have a Material
Adverse Effect. Each Borrower has heretofore delivered to Agent true and complete copies of all material contracts to which
it is a party or to which it or any of its properties is subject. No Borrower has agreed or consented to cause or permit in
the future (upon the happening of a contingency or otherwise) any of its property, whether now owned or hereafter
acquired, to be subject to a Lien which is not a Permitted Encumbrance.

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5.14          No
Labor Disputes. No Borrower is involved in any labor dispute; there are no strikes or walkouts or union organization of
any Borrower’s employees threatened or in existence and no labor contract is scheduled to expire during the Term other
than as set forth on Schedule 5.14 hereto.

5.15          Margin
Regulations. No Borrower is engaged, nor will it engage, principally or as one of its important activities, in the
business of extending credit for the purpose of “purchasing” or “carrying” any “margin
stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the
Federal Reserve System as now and from time to time hereafter in effect. No part of the proceeds of any Advance will be used
for “purchasing” or “carrying” “margin stock” as defined in Regulation U of such Board of
Governors.

5.16          Investment
Company Act. No Borrower is an “investment company” registered or required to be registered under the
Investment Company Act of 1940, as amended, nor is it controlled by such a company.

5.17          Disclosure. No
representation or warranty made by any Borrower in this Agreement or in any financial statement, report, certificate or any
other document furnished in connection herewith or therewith contains any untrue statement of a material fact or omits to
state any material fact necessary to make the statements herein or therein not misleading. There is no fact known to any
Borrower or which reasonably should be known to such Borrower which such Borrower has not disclosed to Agent in writing with
respect to the transactions contemplated by this Agreement which could reasonably be expected to have a Material
Adverse Effect.

5.18          Swaps.
No Borrower is a party to, nor will it be a party to, any swap agreement whereby such Borrower has agreed or will agree to
swap interest rates or currencies unless same provides that damages upon termination following an event of default thereunder
are payable on an unlimited “two-way basis” without regard to fault on the part of either party except to the
extent to be negotiated with Agent as an Interest Rate Hedge or other Hedging Liability hereunder.

5.19          Conflicting
Agreements. No provision of any mortgage, indenture, contract, agreement, judgment, decree or order binding on any
Borrower or affecting the Collateral conflicts with, or requires any Consent which has not already been obtained to, or would
in any way prevent the execution, delivery or performance of, the terms of this Agreement or the Other Documents.

5.20          Application
of Certain Laws and Regulations. Neither any Borrower nor any Affiliate of any Borrower is subject to any law, statute,
rule or regulation which regulates the incurrence of any Indebtedness, including laws, statutes, rules or regulations
relative to common or interstate carriers or to the sale of electricity, gas, steam, water, telephone, telegraph or other
public utility services.

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5.21          Business
and Property of Borrowers. Upon and after the Closing Date, Borrowers do not propose to engage in any business other than
the business of providing oil field services to the domestic on-shore oil and gas industry and activities necessary to
conduct the foregoing. On the Closing Date, each Borrower will own all the property and possess all of the rights and
Consents necessary for the conduct of the business of such Borrower.

5.22          Section
20 Subsidiaries. Borrowers do not intend to use and shall not use any portion of the proceeds of the Advances, directly
or indirectly, to purchase during the underwriting period, or for 30 days thereafter, Ineligible Securities being
underwritten by a Section 20 Subsidiary.

5.23         
Anti-Terrorism Laws.

(a)               
General. Neither any Borrower nor any Affiliate of any Borrower is in violation of any Anti-Terrorism Law
or engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts
to violate, any of the prohibitions set forth in any Anti-Terrorism Law.

(b)              
Executive Order No. 13224. Neither any Borrower nor any Affiliate of any Borrower or their respective agents
acting or benefiting in any capacity in connection with the Advances or other transactions hereunder, is any of the following (each
a “Blocked Person”):

(i)                
a Person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order No. 13224;

(ii)              
a Person owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is
otherwise subject to the provisions of, the Executive Order No. 13224;

(iii)            
a Person or entity with which any Lender is prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law;

(iv)            
a Person or entity that commits, threatens or conspires to commit or supports “terrorism” as defined
in the Executive Order No. 13224;

(v)              
a Person or entity that is named as a “specially designated national” on the most current list published
by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any replacement website or other replacement
official publication of such list, or

(vi)            
a Person or entity who is affiliated or associated with a Person or entity listed above.

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Neither any Borrower nor to the
knowledge of any Borrower, any of its agents acting in any capacity in connection with the Advances or other transactions hereunder
(i) conducts any business or engages in making or receiving any contribution of funds, goods or services to or for the benefit
of any Blocked Person, or (ii) deals in, or otherwise engages in any transaction relating to, any property or interests in
property blocked pursuant to the Executive Order No. 13224.

5.24          Trading
with the Enemy. No Borrower has engaged, nor does it intend to engage, in any business or activity prohibited by the
Trading with the Enemy Act.

5.25          Federal
Securities Laws. Enservco’s common stock is registered under Section 12(g) of the Exchange Act, and Enservco files
reports pursuant thereto. No other Borrower nor any of its Subsidiaries (i) is required to file periodic reports under
the Exchange Act, (ii) has any securities registered under the Exchange Act or (iii) has filed a
registration statement that has not yet become effective under the Securities Act.

		VI.	AFFIRMATIVE COVENANTS.

Each Borrower
shall, until payment in full of the Obligations and termination of this Agreement:

6.1              Payment
of Fees. Pay to Agent on demand all usual and customary fees and expenses which Agent incurs in connection with
(a) the forwarding of Advance proceeds and (b) the establishment and maintenance of any Blocked Accounts or
Depository Accounts as provided for in Section 4.15(h). Agent may, without making demand, charge Borrowers’ Account for
all such fees and expenses.

6.2              Conduct
of Business and Maintenance of Existence and Assets. (a) Conduct continuously and operate actively its business
according to good business practices and maintain all of its properties useful or necessary in its business in good working
order and condition (reasonable wear and tear excepted and except as may be disposed of in accordance with the terms of this
Agreement), including all licenses, patents, copyrights, design rights, tradenames, trade secrets and trademarks and take all
actions necessary to enforce and protect the validity of any intellectual property right or other right included in the
Collateral; (b) keep in full force and effect its existence and comply in all material respects with the laws and
regulations governing the conduct of its business where the failure to do so could reasonably be expected to have a Material
Adverse Effect; and (c) make all such reports and pay all such franchise and other taxes and license fees and do all
such other acts and things as may be lawfully required to maintain its rights, licenses, leases, powers and franchises under
the laws of the United States or any political subdivision thereof.

6.3              Violations.
Promptly notify Agent in writing of any violation of any law, statute, regulation or ordinance of any Governmental Body, or
of any agency thereof, applicable to any Borrower which could reasonably be expected to have a Material Adverse Effect.

6.4              Government
Receivables. Take all steps necessary to protect Agent’s interest in the Collateral under the Federal Assignment of
Claims Act, the Uniform Commercial Code and all other applicable state or local statutes or ordinances and deliver to Agent
appropriately endorsed, any instrument or chattel paper connected with any Receivable arising out of contracts between any
Borrower and the United States, any state or any department, agency or instrumentality of any of them.

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6.5             
Financial Covenants.

(a)               
Fixed Charge Coverage Ratio. Cause to be maintained as of the last day of each fiscal quarter of Borrowers
(the “compliance test date” as used in this Section 6.5), commencing with the fiscal quarter of Borrowers ending December 31,
2012, a Fixed Charge Coverage Ratio of not less than 1.1 to 1.0. For the purpose of this covenant, the Fixed Charge Coverage Ratio
shall be determined on the basis of the trailing twelve-month period ended on the applicable quarterly compliance test date, provided
that for each quarterly compliance test date prior to September 30, 2013, the Fixed Charge Coverage Ratio will be tested for
the shorter cumulative period commencing on October 1, 2012 and ending on such test date.

(b)              
Tangible Net Worth. Cause to be maintained a Tangible Net Worth of not less than $3,750,000 for any compliance
test date in 2012. Minimum Tangible Net Worth requirements for any compliance test dates in 2013, 2014 and 2015 will be agreed
upon between Agent and Borrowing Agent within thirty (30) days following submission of Borrowers’ financial projections for
the applicable year as set forth in Section 9.12 hereof. Borrowers’ compliance with this covenant shall be tested as of the
last day of each fiscal quarter of Borrowers, commencing with the fiscal quarter of Borrowers ending December 31, 2012.

6.6              Execution
of Supplemental Instruments. Execute and deliver to Agent from time to time, upon demand, such supplemental agreements,
statements, assignments and transfers, or instructions or documents relating to the Collateral, and such other instruments as
Agent may request, in order that the full intent of this Agreement may be carried into effect.

6.7              Payment
of Indebtedness. Pay, discharge or otherwise satisfy at or before maturity (subject, where applicable, to specified grace
periods and, in the case of the trade payables, to normal payment practices) all its obligations and liabilities of whatever
nature, except when the failure to do so could not reasonably be expected to have a Material Adverse Effect or when the
amount or validity thereof is currently being contested in good faith by appropriate proceedings and each Borrower shall
have provided for such reserves as Agent may reasonably deem proper and necessary, subject at all times to any applicable
subordination arrangement in favor of Lenders.

6.8              Standards
of Financial Statements. Cause all financial statements referred to in Sections 9.7, 9.8, 9.9, 9.10, 9.11, 9.12 and 9.13
as to which GAAP is applicable to be complete and correct in all material respects (subject, in the case of interim quarterly
financial statements, to normal year-end audit adjustments, and in the case of interim monthly financial statements, to the
fact that the disclosures normally associated with GAAP financial statements may not be included) and to be prepared
in reasonable detail and in accordance with GAAP applied consistently throughout the periods reflected therein (except as
concurred in by such reporting accountants or officer, as the case may be, and disclosed therein).

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6.9              Federal
Securities Laws. Promptly notify Agent in writing if any Borrower (other than Enservco) or any of its Subsidiaries
(i) is required to file periodic reports under the Exchange Act, (ii) registers any securities under the Exchange
Act or (iii) files a registration statement under the Securities Act.

6.10          Vehicle
Titles. Cause Agent to be named as the sole registered lien holder on each certificate of title to each material (as
determined by Agent in its Permitted Discretion) item of rolling stock of Borrowers, with such process having been started in
coordination with the release of such Liens by Borrowers’ prior lender with the intention to have commenced such
process within sixty (60) days after the Closing Date and thereafter diligently pursued by Agent and Borrowers.

6.11          Termination
Statements. Cause each of the UCC-1 financing statements filed by Compass Bank against the Borrowers to be terminated
within thirty (30) days after the Closing Date.

6.12          Interest
Rate Protection Agreement. Use commercially reasonable efforts to enter into an interest rate protection agreement for an
amount not less than $1,000,000 within thirty (30) days after the Closing Date.

6.13          Affiliate
Bankruptcy. Promptly notify Agent if any Affiliate or any Subsidiary of any Borrower, or any Guarantor, shall
(i) apply for, consent to or suffer the appointment of, or the taking of possession by, a receiver, custodian,
trustee, liquidator or similar fiduciary of itself or himself or of all or a substantial part of its or his property,
(ii) admit in writing its or his inability, or be generally unable, to pay its or his debts as they become due or cease
operations of its or his present business, (iii) make a general assignment for the benefit of creditors,
(iv) commence a voluntary case under any state or federal bankruptcy laws (as now or hereafter in effect), (v) be
adjudicated a bankrupt or insolvent, (vi) file a petition seeking to take advantage of any other law providing for the
relief of debtors, (vii) acquiesce to, or fail to have dismissed, within sixty (60) days, any petition filed against it
or him in any involuntary case under such bankruptcy laws, or (viii) take any action for the purpose of effecting any of
the foregoing.

		VII.	NEGATIVE COVENANTS.

No Borrower
shall, until satisfaction in full of the Obligations and termination of this Agreement:

7.1             
Merger, Consolidation, Acquisition and Sale of Assets.

(a)               
Enter into any merger, consolidation or other reorganization with or into any other Person or acquire all or a substantial
portion of the assets or Equity Interests of any Person or permit any other Person to consolidate with or merge with it in any
manner that would have a Material Adverse Effect.

(b)              
Sell, lease, transfer or otherwise dispose of any material portion of its properties or assets, except (i) dispositions
of Equipment to the extent expressly permitted by Section 4.3 and (ii) any other sales or dispositions expressly permitted
by this Agreement.

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7.2              Creation
of Liens. Create or suffer to exist any Lien or transfer upon or against any of its property or assets now owned or
hereafter acquired, except Permitted Encumbrances.

7.3              Guarantees.
Become liable upon the obligations or liabilities of any Person by assumption, endorsement or guaranty thereof or otherwise
(other than to Lenders) except the endorsement of checks in the Ordinary Course of Business.

7.4              Investments. Purchase
or acquire obligations or Equity Interests of, or any other interest in, any Person (not including any Person who becomes a
borrower hereunder or a Guarantor hereof), except (a) obligations issued or guaranteed by the United States of America
or any agency thereof, (b) commercial paper with maturities of not more than 180 days and a published rating of not less
than A-1 or P-1 (or the equivalent rating), (c) certificates of time deposit and bankers’ acceptances having
maturities of not more than 180 days and repurchase agreements backed by United States government securities of a commercial
bank if (i) such bank has a combined capital and surplus of at least $500,000,000, or (ii) its debt obligations, or
those of a holding company of which it is a Subsidiary, are rated not less than A (or the equivalent rating) by a nationally
recognized investment rating agency, and (d) U.S. money market funds that invest solely in obligations issued or
guaranteed by the United States of America or an agency thereof.

7.5              Loans. Make
advances, loans or extensions of credit to any Person, including any Parent, Subsidiary or Affiliate, except advances, loans
or extensions of credit to another Borrower or to a Guarantor.

7.6              Capital
Expenditures. Contract for, purchase or make any expenditure or commitments for Capital Expenditures in any fiscal year
in an aggregate amount for all Borrowers in excess of $2,500,000.

7.7              Dividends
and Distributions.No Borrower shall declare, pay or make any cash dividend or distribution on any of its Equity
Interests or apply any of its funds, property or assets to the purchase, redemption or other retirement of any of its Equity
Interests, or of any options to purchase or acquire any of its Equity Interests except (i) dividends or
distributions from a Subsidiary of a Borrower to a Borrower and (ii) dividends or distributions to Enservco (x) to
enable Enservco to pay costs of overhead related to its status as owner of Dillco and Heat Waves, (y) to enable Enservco
to pay taxes related to the income of its Subsidiaries, and (z) to enable Enservco to make payments with respect to its
Indebtedness to Michael D. Herman to the extent expressly permitted by the Guarantor Subordination Agreement.

7.8              Indebtedness.
Create, incur, assume or suffer to exist any Indebtedness (exclusive of trade debt) except in respect of
(i) Indebtedness to Lenders; (ii) Indebtedness incurred for Capital Expenditures permitted under Section 7.6
hereof; and (iii) Indebtedness due under the Subordinated Loan Documentation.

7.9             
Nature of Business. Substantially change the nature of the business in which it is presently engaged, nor
except as specifically permitted hereby purchase or invest, directly or indirectly, in any assets or property other than in the
Ordinary Course of Business for assets or property which are useful in, necessary for and are to be used in its business as presently
conducted.

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7.10          Transactions
with Affiliates. Directly or indirectly, purchase, acquire or lease any property from, or sell, transfer or lease any
property to, or otherwise enter into any transaction or deal with, any Affiliate, except transactions disclosed to the Agent
or which have been disclosed in reports that Enservco has filed or may in the future file with the SEC, which are in the
Ordinary Course of Business, on an arm’s-length basis on terms and conditions no less favorable than terms and
conditions which would have been obtainable from a Person other than an Affiliate.

7.11          Leases. Enter
as lessee into any lease arrangement for real or personal property (unless capitalized and permitted under Section 7.6
hereof) if after giving effect thereto, aggregate annual rental payments for all leased property would exceed $250,000 in any
one fiscal year in the aggregate for all Borrowers except to the extent in effect on the date hereof or which are entered
into to replace or renew existing leases.

7.12         
Subsidiaries.

(a)               
Form any Subsidiary unless (i) such Subsidiary expressly joins in this Agreement as a borrower hereunder or
guarantor hereof and thereby becomes jointly and severally liable for the obligations of Borrowers hereunder, under the Notes,
and under any other agreement between any Borrower and Lenders and (ii) Agent shall have received all documents, including
legal opinions, it may reasonably require to establish compliance with each of the foregoing conditions.

(b)              
Enter into any partnership, joint venture or similar arrangement.

7.13          Fiscal
Year and Accounting Changes. Change its fiscal year from December 31st or make any significant change (i) in
accounting treatment and reporting practices except as required by GAAP or (ii) in tax reporting treatment except as
required by law.

7.14          Pledge
of Credit. Now or hereafter pledge Agent’s or any Lender’s credit on any purchases or for any purpose
whatsoever or use any portion of any Advance in or for any business other than such Borrower’s business as conducted on
the date of this Agreement.

7.15          Amendment
of Articles or Certificate of Incorporation, By-Laws Certificate of Formation, Operating Agreement Amend, modify or waive
any term or material provision of its Articles of Incorporation, Certificate of Incorporation, or By-Laws, or Certificate of
Formation or Operating Agreement, as applicable, unless required by law.

7.16         
Compliance with ERISA. (i) (x) Maintain, or permit any member of the Controlled Group to maintain,
or (y) become obligated to contribute, or permit any member of the Controlled Group to become obligated to contribute, to
any Plan, other than those Plans disclosed on Schedule 5.8(d) or any other Plan for which Agent has provided its prior
written consent, (ii) engage, or permit any member of the Controlled Group to engage, in any non-exempt “prohibited
transaction,” as that term is defined in section 406 of ERISA and Section 4975 of the Code, (iii) incur, or permit
any member of the Controlled Group to incur, any “accumulated funding deficiency,” as that term is defined in Section
302 of ERISA or Section 412 of the Code, (iv) terminate, or permit any member of the Controlled Group to terminate, any Plan
where such event could result in any liability of any Borrower or any member of the Controlled Group or the imposition of a lien
on the property of any Borrower or any member of the Controlled Group pursuant to Section 4068 of ERISA, (v) assume, or permit
any member of the Controlled Group to assume, any obligation to contribute to any Multiemployer Plan not disclosed on Schedule
5.8(d), (vi) incur, or permit any member of the Controlled Group to incur, any withdrawal liability to any Multiemployer
Plan; (vii) fail promptly to notify Agent of the occurrence of any Termination Event, (viii) fail to comply, or permit
a member of the Controlled Group to fail to comply, with the requirements of ERISA or the Code or other Applicable Laws in respect
of any Plan, (ix) fail to meet, or permit any member of the Controlled Group to fail to meet, all minimum funding requirements
under ERISA or the Code or postpone or delay or allow any member of the Controlled Group to postpone or delay any funding requirement
with respect of any Plan.

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7.17          Prepayment
of Indebtedness. Except as permitted pursuant to Section 7.21 hereof, at any time, directly or indirectly, prepay any
Indebtedness (other than to Lenders), or repurchase, redeem, retire or otherwise acquire any Indebtedness of any
Borrower.

7.18          Anti-Terrorism
Laws. No Borrower shall, until satisfaction in full of the Obligations and termination of this Agreement, nor shall it
permit any Affiliate or agent to:

(a)               
Conduct any business or engage in any transaction or dealing with any Blocked Person, including the making or receiving
any contribution of funds, goods or services to or for the benefit of any Blocked Person.

(b)              
Deal in, or otherwise engage in any transaction relating to, any property or interests in property blocked pursuant
to the Executive Order No. 13224.

(c)               
Engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in the Executive Order No. 13224, the USA PATRIOT Act or any other Anti-Terrorism
Law. Borrower shall deliver to Lenders any certification or other evidence requested from time to time by any Lender in its Permitted
Discretion, confirming Borrower’s compliance with this Section.

7.19          Membership/Partnership
Interests. Elect to treat or permit any of its Subsidiaries to (x) treat its limited liability company membership
interests or partnership interests, as the case may be, as securities as contemplated by the definition of
“security” in Section 8-102(15) and by Section 8-103 of Article 8 of Uniform Commercial Code or
(y) certificate its limited liability company membership interests or partnership interests, as the case may be.

7.20          Trading
with the Enemy Act. Engage in any business or activity in violation of the Trading with the Enemy Act.

7.21         
Subordinated Debt. Make any payment in cash or other assets of any Borrower (not including common or preferred
stock of Enservco) in respect to any subordinated debt of Enservco except to the extent expressly permitted by the terms of a
written subordination agreement in form and substance satisfactory to Agent in its Permitted Discretion between Agent and the
holder of such indebtedness.

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		VIII.	CONDITIONS PRECEDENT.

 

8.1              Conditions
to Initial Advances. The agreement of Lenders to make the initial Advances requested to be made on the Closing Date is
subject to the satisfaction, or waiver by Agent, immediately prior to or concurrently with the making of such Advances, of
the following conditions precedent:

(a)               
Loan Documents. Agent shall have received this Agreement and each of the other Documents, each duly executed
and delivered by an authorized officer of each Borrower or Guarantor party thereto;

(b)              
Filings, Registrations and Recordings. Each document (including any Uniform Commercial Code financing statement)
required by this Agreement, any related agreement or under law or reasonably requested by the Agent to be filed, registered or
recorded in order to create, in favor of Agent, a perfected security interest in or lien upon the Collateral shall have been properly
filed, registered or recorded in each jurisdiction in which the filing, registration or recordation thereof is so required or requested,
and Agent shall have received an acknowledgment copy, or other evidence satisfactory to it, of each such filing, registration or
recordation and satisfactory evidence of the payment of any necessary fee, tax or expense relating thereto except with respect
to vehicle titles which shall be dealt with as contemplated in Section 6.10;

(c)               
Corporate or Company Proceedings of Borrowers. Agent shall have received a copy of the resolutions in form
and substance reasonably satisfactory to Agent, of the Board of Directors, Board of Managers or Managing Member of each Borrower
authorizing (i) the execution, delivery and performance of this Agreement and any Other Documents to which such Borrower is
a party and (ii) the granting by each Borrower of the security interests in and liens upon the Collateral in each case certified
by the Secretary or an Assistant Secretary of each Borrower as of the Closing Date; and, such certificate shall state that the
resolutions thereby certified have not been amended, modified, revoked or rescinded as of the date of such certificate;

(d)              
Incumbency Certificates of Borrowers. Agent shall have received a certificate of the Secretary or an Assistant
Secretary of each Borrower, dated the Closing Date, as to the incumbency and signature of the officers of each Borrower executing
this Agreement, the Other Documents, any certificate or other documents to be delivered by it pursuant hereto, together with evidence
of the incumbency of such Secretary or Assistant Secretary;

(e)               
Certificates. Agent shall have received a copy of the Articles or Certificate of Incorporation or Formation
of each Borrower and all amendments thereto, certified by the Secretary of State or other appropriate official of its jurisdiction
of incorporation or formation together with copies of the By-Laws or Operating Agreement of each Borrower and all agreements of
each Borrower’s shareholders or members certified as accurate and complete by the Secretary of each Borrower;

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(f)               
Good Standing Certificates. Agent shall have received good standing certificates for each Borrower dated not
more than 30 days prior to the Closing Date, issued by the Secretary of State or other appropriate official of each Borrower’s
jurisdiction of incorporation or formation and each jurisdiction where the conduct of each Borrower’s business activities
or the ownership of its properties necessitates qualification;

(g)              
Legal Opinion. Agent shall have received the executed legal opinion of Burns, Figa & Will, P.C. in form
and substance satisfactory to Agent which shall cover such matters incident to the transactions contemplated by this Agreement
and the Other Documents as Agent may reasonably require;

(h)              
No Litigation. (i) No litigation, investigation or proceeding before or by any arbitrator or Governmental
Body shall be continuing or threatened against any Borrower or against the officers or directors of any Borrower (A) in connection
with this Agreement, the Other Documents or any of the transactions contemplated thereby and which, in the reasonable opinion of
Agent, is deemed material or (B) which could, in the reasonable opinion of Agent, have a Material Adverse Effect; and (ii) no
injunction, writ, restraining order or other order of any nature materially adverse to any Borrower or the conduct of its business
or inconsistent with the due consummation of the Transactions shall have been issued by any Governmental Body;

(i)                
Financial Condition Certificates. Agent shall have received an executed Financial Condition Certificate in
the form of Exhibit 8.1(k).

(j)                
Collateral Examination. Agent shall have completed Collateral examinations and received appraisals, the results
of which shall be satisfactory in form and substance to Lenders, of the Receivables, Equipment and other assets of each Borrower
and of all books and records in connection therewith;

(k)              
Fees. Agent shall have received all fees payable to Agent and Lenders on or prior to the Closing Date hereunder,
including pursuant to Article III hereof;

(l)                
Insurance. Agent shall have received in form and substance satisfactory to Agent, certified copies of Borrowers’
casualty insurance policies, together with loss payable endorsements on Agent’s standard form of loss payee endorsement naming
Agent as loss payee, and certified copies of Borrowers’ liability insurance policies, together with endorsements naming Agent
as an additional insured;

(m)            
Securities Account Control Agreement. Agent shall have entered into a securities account control agreement
with TD Ameritrade with respect to the shares of Pyramid Oil Company held by Michael D. Herman, which shall perfect Agent’s
security interest in one-half of such shares, provide for Agent to have a first-priority perfected security interest in the other
half of such shares upon the full repayment of certain indebtedness to Great Western Bank guaranteed by Mr. Herman, and otherwise
be in form and substance satisfactory to Agent in its Permitted Discretion.

(n)              
Payment Instructions. Agent shall have received written instructions from Borrowing Agent directing the application
of proceeds of the initial Advances made pursuant to this Agreement;

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(o)              
Blocked Accounts. Agent shall have received duly executed agreements establishing the Blocked Accounts or
Depository Accounts with financial institutions acceptable to Agent for the collection or servicing of the Receivables and proceeds
of the Collateral;

(p)              
Consents. Agent shall have received any and all Consents necessary to permit the effectuation of the transactions
contemplated by this Agreement and the Other Documents; and, Agent shall have received such Consents and waivers of such third
parties as might assert claims with respect to the Collateral, as Agent and its counsel shall deem necessary;

(q)              
No Adverse Material Change. (i) since October 8, 2012, there shall not have occurred any event,
condition or state of facts which could reasonably be expected to have a Material Adverse Effect and (ii) no representations
made or information supplied to Agent or Lenders shall have been proven to be inaccurate or misleading in any material respect;

(r)                
Additional Capital. Enservco shall have raised additional equity capital of not less than $1,250,000 on such
terms and conditions as may be approved by the board of directors of Enservco;

(s)               
Conversion of Herman Subordinated Debt. Michael D. Herman shall have converted the indebtedness of Enservco
owing to him into common stock and warrants of Enservco on such terms and conditions as may be approved by the board of directors
of Enservco;

(t)                
Capital Structure. Agent, in its Permitted Discretion, shall have been satisfied with its review of the capital
structure of the Borrowers;

(u)              
Leasehold Agreements. Agent shall have received landlord, mortgagee or warehouseman agreements satisfactory
to Agent with respect to all premises leased by Borrowers at which Inventory, Equipment or books and records are located, or Agent
shall have established a reserve against availability under the Revolving Advances facility in an amount equal to three (3) months’
rent for any such premises for which Agent did not receive such an agreement;

(v)              
Contract Review. Agent shall have reviewed all material contracts of Borrowers including MSAs, leases, union
contracts, labor contracts, vendor supply contracts, license agreements and distributorship agreements, and all such material contracts
and agreements shall be satisfactory in all respects to Agent;

(w)            
Closing Certificate. Agent shall have received a closing certificate signed by the Chief Financial Officer
of each Borrower dated as of the date hereof, stating that (i) all representations and warranties set forth in this Agreement
and the Other Documents are true and correct on and as of such date, (ii) Borrowers are on such date in compliance with all
the terms and provisions set forth in this Agreement and the Other Documents and (iii) on such date no Default or Event of
Default has occurred or is continuing;

(x)              
Borrowing Base. Agent shall have received evidence from Borrowers that the aggregate amount of Eligible Receivables
is sufficient in value and amount to support Advances in the amount requested by Borrowers on the Closing Date;

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(y)              
Undrawn Availability. After giving effect to the initial Advances hereunder, the sum of (i) Undrawn Availability
and (ii) Borrowers’ aggregate unrestricted cash shall be at least $1,750,000;

(z)               
Compliance with Laws. Agent shall be reasonably satisfied that each Borrower is in compliance with all pertinent
federal, state, local or territorial regulations, including those with respect to the Federal Occupational Safety and Health Act,
the Environmental Protection Act, ERISA and the Trading with the Enemy Act; and

(aa)           
Other. All corporate and other proceedings, and all documents, instruments and other legal matters in connection
with the Transactions shall be satisfactory in form and substance to Agent and its counsel.

8.2              Conditions
to Each Advance. The agreement of Lenders to make any Advance requested to be made on any date (including the initial
Advance), is subject to the satisfaction of the following conditions precedent as of the date such Advance is made:

(a)               
Representations and Warranties. Each of the representations and warranties made by any Borrower in or pursuant
to this Agreement, the Other Documents and any related agreements to which it is a party, and each of the representations and warranties
contained in any certificate, document or financial or other statement furnished at any time under or in connection with this Agreement,
the Other Documents or any related agreement shall be true and correct in all material respects on and as of such date as if made
on and as of such date;

(b)              
No Default. No Event of Default or Default shall have occurred and be continuing on such date, or would exist
after giving effect to the Advances requested to be made, on such date; provided, however that Agent, in its Permitted Discretion,
may continue to make Advances notwithstanding the existence of an Event of Default or Default and that any Advances so made shall
not be deemed a waiver of any such Event of Default or Default; and

(c)               
Maximum Advances. In the case of any type of Advance requested to be made, after giving effect thereto, the
aggregate amount of such type of Advance shall not exceed the maximum amount of such type of Advance permitted under this Agreement.

Each request
for an Advance by any Borrower hereunder shall constitute a representation and warranty by each Borrower as of the date of such
Advance that the conditions contained in this subsection shall have been satisfied.

		IX.	INFORMATION AS TO BORROWERS.

Each Borrower
shall, or (except with respect to Section 9.11) shall cause Borrowing Agent on its behalf to, until satisfaction in full of the
Obligations and the termination of this Agreement:

9.1              Disclosure
of Material Matters. Immediately upon learning thereof, report to Agent all matters materially affecting the value,
enforceability or collectibility of any portion of the Collateral, including any Borrower’s reclamation or repossession
of, or the return to any Borrower of, a material amount of goods or claims or disputes asserted by any Customer or other
obligor.

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9.2              Schedules.
Deliver to Agent on or before the twenty-fifth (25th) day of each month as and for the prior month (a) accounts
receivable agings inclusive of reconciliations to the general ledger, (b) accounts payable schedules inclusive of
reconciliations to the general ledger, (c) inventory reports, if any, and (d) a Borrowing Base Certificate in
form and substance satisfactory to Agent (which shall be calculated as of the last day of the prior month and which shall not
be binding upon Agent or restrictive of Agent’s rights under this Agreement). In addition, each Borrower will deliver
to Agent at such intervals as Agent may require: (i) confirmatory assignment schedules, (ii) copies of
Customer’s invoices, (iii) evidence of shipment or delivery, and (iv) such further schedules, documents
and/or information regarding the Collateral as Agent may require including trial balances and test verifications. Agent shall
have the right to confirm and verify all Receivables by any manner and through any medium it considers advisable and do
whatever it may deem reasonably necessary to protect its interests hereunder. The items to be provided under this Section are
to be in form satisfactory to Agent and executed by each Borrower and delivered to Agent from time to time solely for
Agent’s convenience in maintaining records of the Collateral, and any Borrower’s failure to deliver any of such
items to Agent shall not affect, terminate, modify or otherwise limit Agent’s Lien with respect to the Collateral.

9.3              Environmental
Reports. Furnish Agent, concurrently with the delivery of the financial statements referred to in Sections 9.7 and 9.8,
with a Compliance Certificate signed by the President of Borrowing Agent stating, to the best of his knowledge, that each
Borrower is in compliance in all material respects with all federal, state and local Environmental Laws. To the extent any
Borrower is not in compliance with the foregoing laws, the certificate shall set forth with specificity all areas of
non-compliance and the proposed action such Borrower will implement in order to achieve full compliance.

9.4              Litigation. Promptly
notify Agent in writing of any claim, litigation, suit or administrative proceeding affecting any Borrower or any Guarantor,
whether or not the claim is covered by insurance, and of any litigation, suit or administrative proceeding, which in any such
case affects the Collateral or which could reasonably be expected to have a Material Adverse Effect. This obligation to
notify Agent is in addition to the obligation to provide written notice to Agent of all commercial tort claims as required by
Section 4.1

9.5              Material
Occurrences. Promptly notify Agent in writing upon the occurrence of (a) any Event of Default or Default;
(b) any event, development or circumstance whereby any financial statements or other reports furnished to Agent fail in
any material respect to present fairly, in accordance with GAAP consistently applied, the financial condition or
operating results of any Borrower as of the date of such statements; (c) any accumulated retirement plan funding
deficiency which, if such deficiency continued for two plan years and was not corrected as provided in Section 4971 of the
Code, could subject any Borrower to a tax imposed by Section 4971 of the Code; (d) each and every default by any
Borrower which might result in the acceleration of the maturity of any Indebtedness, including the names and addresses of the
holders of such Indebtedness with respect to which there is a default existing or with respect to which the maturity has been
or could be accelerated, and the amount of such Indebtedness; and (e) any other development in the business or affairs
of any Borrower or any Guarantor, which could reasonably be expected to have a Material Adverse Effect; in each case
describing the nature thereof and the action Borrowers propose to take with respect thereto.

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9.6              Government
Receivables. Notify Agent immediately if any of its Receivables arise out of contracts between any Borrower and the
United States, any state, or any department, agency or instrumentality of any of them.

9.7              Annual
Financial Statements. Furnish Agent at the same time furnished to the SEC (but not later than the time limit set forth in
SEC Form 10-K as may be extended by SEC Rule 12b-25), financial statements of Enservco in the same form filed with the SEC
and reported upon without qualification by an independent certified public accounting firm selected by Borrowers and
satisfactory to Agent (the “Accountants”). In addition, the financial statements shall be accompanied by a
Compliance Certificate and the internal consolidating financial statements (that support the consolidated financial
statements) prepared by Enservco in the Ordinary Course of Business.

9.8              Quarterly
Financial Statements. Furnish Agent at the same time furnished to the SEC (but not later than the time limit set forth in
SEC Form 10-Q as may be extended by SEC Rule 12b-25), an unaudited balance sheet of Enservco in the same form filed with the
SEC pursuant to the SEC’s Rules and Regulations, prepared on a basis consistent with prior practices and complete and
correct in all material respects, subject to normal and recurring year-end adjustments that individually and in the aggregate
are not material to Borrowers’ business. The financial statements shall be accompanied by a Compliance Certificate and
the internal consolidating financial statements (that support the consolidated financial statements) prepared by Enservco in
the Ordinary Course of Business.

9.9              Monthly
Financial Statements. For months other than those referred to in Sections 9.7 and 9.8 above, furnish Agent within thirty
(30) days after the end of each month, an unaudited balance sheet of Borrowers on a Consolidated Basis in the same form as
prepared in the Ordinary Course of Business for management of Enservco and unaudited statements of income
and stockholders’ equity and cash flow of Borrowers on a Consolidated Basis reflecting results of operations from the
beginning of the fiscal year to the end of such month and for such month in the same form as prepared in the Ordinary Course
of Business for management of Enservco, prepared on a basis consistent with prior practices and complete and correct in all
material respects, subject to normal and recurring year-end adjustments that individually and in the aggregate are not
material to Borrowers’ business. The financial statements shall be accompanied by a Compliance Certificate and the
internal consolidating financial statements (that support the consolidated financial statements) prepared by Enservco in the
Ordinary Course of Business.

9.10          Other
Reports. Furnish Agent as soon as available, but in any event within ten (10) days after the issuance thereof, with
copies of such financial statements, reports and returns as Enservco shall send to its stockholders.

9.11          Additional
Information. Furnish Agent with such additional information as Agent shall reasonably request in order to enable Agent to
determine whether the terms, covenants, provisions and conditions of this Agreement and the Notes have been complied with by
Borrowers including, without the necessity of any request by Agent, (a) copies of all environmental audits and reviews,
(b) at least thirty (30) days prior thereto, notice of any Borrower’s opening of any new office or place of
business or any Borrower’s closing of any existing office or place of business, and (c) promptly upon
any Borrower’s learning thereof, notice of any labor dispute to which any Borrower may become a party, any strikes or
walkouts relating to any of its plants or other facilities, and the expiration of any labor contract to which any Borrower is
a party or by which any Borrower is bound.

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9.12          Projected
Operating Budget. Furnish Agent, no later than thirty (30) days prior to the beginning of each fiscal year of Borrowers
commencing with fiscal year 2013, a quarter-by-quarter projected operating budget and cash flow of Borrowers on a
Consolidated Basis for such fiscal year (including an income statement for each month and a balance sheet as at the end
of the last month in each fiscal quarter), such projections to be accompanied by a certificate signed by the President or
Chief Financial Officer of each Borrower to the effect that such projections have been prepared on the basis of sound
financial planning practice consistent with past budgets and financial statements and that such officer has no reason to
question the reasonableness of any material assumptions on which such projections were prepared.

9.13          Material
Variances From Operating Budget, Management Discussion and Analysis. Furnish Agent, concurrently with the delivery of the
financial statements referred to in Section 9.7 and each quarterly financial statement referred to in Section 9.8, a
written report summarizing (both with figures and appropriate narrative explanation) (a) material variances from the
budget for the applicable period submitted by Borrowers pursuant to Section 9.12, (b) material variances from
the financial statements for the similar period of the preceding year delivered pursuant to Section 9.7 or 9.8, as
applicable, and (c) a discussion and analysis by management with respect to such material variances reported under
subsection (a) and (b) hereto.

9.14          Notice
of Suits, Adverse Events. Furnish Agent with prompt written notice of (i) any lapse or other termination of any
Consent issued to any Borrower by any Governmental Body or any other Person that is material to the operation of any
Borrower’s business, (ii) any refusal by any Governmental Body or any other Person to renew or extend any such
Consent; and (iii) copies of any periodic or special reports filed by any Borrower or any Guarantor with any
Governmental Body or Person, if such reports indicate any material change in the business, operations, affairs or condition
of any Borrower or any Guarantor, or if copies thereof are requested by Lender, and (iv) copies of any material notices
and other communications from any Governmental Body or Person which specifically relate to any Borrower or any Guarantor.

9.15          ERISA
Notices and Requests. Furnish Agent with immediate written notice in the event that (i) any Borrower or any member
of the Controlled Group knows or has reason to know that a Termination Event has occurred, together with a written statement
describing such Termination Event and the action, if any, which such Borrower or any member of the Controlled Group has
taken, is taking, or proposes to take with respect thereto and, when known, any action taken or threatened by the
Internal Revenue Service, Department of Labor or PBGC with respect thereto, (ii) any Borrower or any member of the
Controlled Group knows or has reason to know that a prohibited transaction (as defined in Sections 406 of ERISA and 4975 of
the Code) has occurred together with a written statement describing such transaction and the action which such Borrower or
any member of the Controlled Group has taken, is taking or proposes to take with respect thereto, (iii) a funding waiver
request has been filed with respect to any Plan together with all communications received by any Borrower or any member of
the Controlled Group with respect to such request, (iv) any increase in the benefits of any existing Plan or the
establishment of any new Plan or the commencement of contributions to any Plan to which any Borrower or any member of the
Controlled Group was not previously contributing shall occur, (v) any Borrower or any member of the Controlled Group
shall receive from the PBGC a notice of intention to terminate a Plan or to have a trustee appointed to administer a Plan,
together with copies of each such notice, (vi) any Borrower or any member of the Controlled Group shall receive any
favorable or unfavorable determination letter from the Internal Revenue Service regarding the qualification of a Plan under
Section 401(a) of the Code, together with copies of each such letter; (vii) any Borrower or any member of the
Controlled Group shall receive a notice regarding the imposition of withdrawal liability, together with copies of each such
notice; (viii) any Borrower or any member of the Controlled Group shall fail to make a required installment or any other
required payment under Section 412 of the Code on or before the due date for such installment or payment; or (ix) any
Borrower or any member of the Controlled Group knows that (a) a Multiemployer Plan has been terminated, (b) the
administrator or plan sponsor of a Multiemployer Plan intends to terminate a Multiemployer Plan, or (c) the PBGC has
instituted or will institute proceedings under Section 4042 of ERISA to terminate a Multiemployer Plan.

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9.16          Additional
Documents. Execute and deliver to Agent, upon request, such documents and agreements as Agent may, from time to time,
reasonably request to carry out the purposes, terms or conditions of this Agreement.

		X.	EVENTS OF DEFAULT.

 

The occurrence
of any one or more of the following events shall constitute an “Event of Default”:

10.1          Nonpayment. Failure
by any Borrower to pay any principal or interest on the Obligations when due, whether at maturity or by reason of
acceleration pursuant to the terms of this Agreement or by notice of intention to prepay, or by required prepayment or
failure to pay any other liabilities or make any other payment, fee or charge provided for herein when due or in any Other
Document unless such other liability, payment, fee or charge is paid within five (5) Business Days after Agent or any Lender
makes written demand therefor;

10.2          Breach
of Representation. Any representation or warranty made or deemed made by any Borrower or any Guarantor in this Agreement,
any Other Document or any related agreement or in any certificate, document or financial or other statement furnished at any
time in connection herewith or therewith shall prove to have been misleading in any material respect on the date when made or
deemed to have been made;

10.3          Financial
Information. Failure by any Borrower to (i)(x) furnish financial information when due or ten (10) Business Days
after written demand therefor is made, or (y) when requested which is unremedied for a period of fifteen (15) days after
such request, or (ii) permit the inspection of its books or records in accordance with this Agreement;

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10.4          Judicial
Actions. Issuance of a notice of Lien, levy, assessment, injunction or attachment against any Borrower’s Inventory
or Receivables or against a material portion of any Borrower’s other property which is not stayed or lifted
within thirty (30) days;

10.5          Noncompliance. Except
as otherwise provided for in Sections 10.1, 10.3 and 10.5(ii), (i) failure or neglect of any Borrower or any Guarantor
to (in any respect that would have a Material Adverse Effect) perform, keep or observe any term, provision, condition,
covenant herein contained, or contained in any Other Document or any other agreement or arrangement, now or hereafter entered
into between any Borrower or any Guarantor, and Agent or any Lender, or (ii) failure or neglect of any Borrower to
perform, keep or observe any term, provision, condition or covenant, contained in Sections 4.6, 4.7, 4.9, 6.1, 6.3, 6.4, 9.4
or 9.6 hereof which is not cured within ten (10) days from the occurrence of such failure or neglect which failure would have
a Material Adverse Effect;

10.6          Judgments. Any
judgment or judgments are rendered against any Borrower or any Guarantor for an aggregate amount in excess of $250,000 and
(i) enforcement proceedings shall have been commenced by a creditor upon such judgment, (ii) there shall be any
period of thirty (30) consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or
otherwise, shall not be in effect, or (iii) any such judgment results in the creation of a Lien upon any of
the Collateral (other than a Permitted Encumbrance);

10.7          Bankruptcy.
Any Borrower or any Guarantor shall (i) apply for, consent to or suffer the appointment of, or the taking of possession
by, a receiver, custodian, trustee, liquidator or similar fiduciary of itself or of all or a substantial part of its
property, (ii) make a general assignment for the benefit of creditors, (iii) commence a voluntary case under any
state or federal bankruptcy laws (as now or hereafter in effect), (iv) be adjudicated a bankrupt or insolvent,
(v) file a petition seeking to take advantage of any other law providing for the relief of debtors, (vi) acquiesce
to, or fail to have dismissed, within thirty (30) days, any petition filed against it in any involuntary case under such
bankruptcy laws, or (vii) take any action for the purpose of effecting any of the foregoing;

10.8         
Inability to Pay. Any Borrower or any Guarantor shall admit in writing its inability, or be generally unable,
to pay its debts as they become due or cease operations of its present business;

10.9         
[Reserved].

10.10      Material
Adverse Effect. Any change in any Borrower’s results of operations or condition (financial or otherwise) which in
Agent’s Permitted Discretion has a Material Adverse Effect;

10.11      Lien
Priority. Any Lien created hereunder or provided for hereby or under any related agreement for any reason ceases to be or
is not a valid and perfected Lien having a first priority interest in any material respect except to the extent the grantor
of such Lien appropriately responds to Agent’s request for curative measures with respect to such Lien;

10.12     
[Reserved].

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10.13      Cross
Default. A default of the obligations of any Borrower under any other agreement to which it is a party shall occur which
default has a Material Adverse Effect upon Enservco’s condition, affairs or prospects (financial or otherwise), which
default is not cured within any applicable grace period;

10.14      Breach
of Guaranty. Termination or breach of any Guaranty or Guaranty Security Agreement or similar agreement executed and
delivered to Agent in connection with the Obligations of any Borrower, or if any Guarantor attempts to terminate, challenges
the validity of, or its liability under, any such Guaranty or Guaranty Security Agreement or similar agreement;

10.15      Change
of Ownership. Any Change of Ownership shall occur which Change of Ownership is not cured or rectified within thirty (30)
days after written notice thereof to Borrowers from Agent;

10.16      Invalidity. Any
material provision of this Agreement or any Other Document shall, for any reason, cease to be valid and binding on Borrower
or any Guarantor, or any Borrower or any Guarantor shall so claim in writing to Agent or any Lender;

10.17      Licenses. (i) Any
Governmental Body shall (A) revoke, terminate, suspend or adversely modify any license, permit, patent trademark or
tradename of any Borrower, the continuation of which is material to the continuation of any Borrower’s business, or
(B) commence proceedings to suspend, revoke, terminate or adversely modify any such license, permit, trademark,
tradename or patent and such proceedings shall not be dismissed or discharged within sixty (60) days, or (C) schedule or
conduct a hearing on the renewal of any license, permit, trademark, tradename or patent necessary in any material respect
for the continuation of any Borrower’s business and the staff of such Governmental Body issues a report recommending
the termination, revocation, suspension or material, adverse modification of such license, permit, trademark, tradename or
patent; (ii) any agreement which is necessary or material to the operation of any Borrower’s business shall be
revoked or terminated and not replaced by a substitute acceptable to Agent within thirty (30) days after the date of such
revocation or termination, and such revocation or termination and non-replacement would reasonably be expected to have a
Material Adverse Effect;

10.18      Seizures. Any
material portion of the Collateral shall be seized or taken by a Governmental Body, or any Borrower or the title and rights
of any Borrower which is the owner of any material portion of the Collateral shall have become the subject matter of claim,
litigation, suit or other proceeding which might, in the opinion of Agent, upon final determination, result in impairment or
loss of the security provided by this Agreement or the Other Documents unless Borrowers have provided an adequate bond in the
matter;

10.19      Operations.
The operations of any Borrower are interrupted in any material respect for more than seven (7) days during any period of
twenty-one (21) consecutive days, unless such Borrower shall (i) be entitled to receive for such period of interruption,
proceeds of business interruption insurance sufficient to assure that its per diem cash needs during such period is at least
equal to its average per diem cash needs for the consecutive three month period immediately preceding the initial date of
interruption and (ii) receive such proceeds in the amount described in clause (i) preceding not later than thirty (30)
days following the initial date of any such interruption; provided, however, that notwithstanding the provisions of
clauses (i) and (ii) of this section, an Event of Default shall be deemed to have occurred if such Borrower shall be
receiving the proceeds of business interruption insurance for a period of thirty (30) consecutive days; or

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10.20      Pension
Plans. An event or condition specified in Sections 7.16 or 9.15 hereof shall occur or exist with respect to any Plan and,
as a result of such event or condition, together with all other such events or conditions, any Borrower or any member of the
Controlled Group shall incur, or in the opinion of Agent be reasonably likely to incur, a liability to a Plan or the PBGC (or
both) which, in the reasonable judgment of Agent, would have a Material Adverse Effect.

		XI.	LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT.

11.1         
Rights and Remedies.

(a)               
Upon the occurrence of (i) an Event of Default pursuant to Section 10.7 all Obligations shall be immediately
due and payable and this Agreement and the obligation of Lenders to make Advances shall be deemed terminated; and, (ii) any
of the other Events of Default and at any time thereafter (such default not having previously been cured), at the option of Required
Lenders all Obligations shall be immediately due and payable and Lenders shall have the right to terminate this Agreement and to
terminate the obligation of Lenders to make Advances and (iii) a filing of a petition against any Borrower in any involuntary
case under any state or federal bankruptcy laws, all Obligations shall be immediately due and payable and the obligation of Lenders
to make Advances hereunder shall be terminated other than as may be required by an appropriate order of the bankruptcy court having
jurisdiction over such Borrower. Upon the occurrence of any Event of Default, Agent shall have the right to exercise any and all
rights and remedies provided for herein, under the Other Documents, under the Uniform Commercial Code and at law or equity generally,
including the right to foreclose the security interests granted herein and to realize upon any Collateral by any available judicial
procedure and/or to take possession of and sell any or all of the Collateral with or without judicial process. Agent may enter
any of any Borrower’s premises or other premises without legal process and without incurring liability to any Borrower therefor,
and Agent may thereupon, or at any time thereafter, in its Permitted Discretion without notice or demand, take the Collateral and
remove the same to such place as Agent may deem advisable and Agent may require Borrowers to make the Collateral available to Agent
at a convenient place. With or without having the Collateral at the time or place of sale, Agent may sell the Collateral, or any
part thereof, at public or private sale, at any time or place, in one or more sales, at such price or prices, and upon such terms,
either for cash, credit or future delivery, as Agent may elect. Except as to that part of the Collateral which is perishable or
threatens to decline speedily in value or is of a type customarily sold on a recognized market, Agent shall give Borrowers reasonable
notification of such sale or sales, it being agreed that in all events written notice mailed to Borrowing Agent at least ten (10)
days prior to such sale or sales is reasonable notification. At any public sale Agent or any Lender may bid for and become the
purchaser, and Agent, any Lender or any other purchaser at any such sale thereafter shall hold the Collateral sold absolutely free
from any claim or right of whatsoever kind, including any equity of redemption and all such claims, rights and equities are hereby
expressly waived and released by each Borrower. In connection with the exercise of the foregoing remedies, including the sale of
Inventory, Agent is granted a perpetual nonrevocable, royalty free, nonexclusive license and Agent is granted permission to use
all of each Borrower’s (a) trademarks, trade styles, trade names, patents, patent applications, copyrights, service
marks, licenses, franchises and other proprietary rights which are used or useful in connection with Inventory for the purpose
of marketing, advertising for sale and selling or otherwise disposing of such Inventory and (b) Equipment for the purpose
of completing the manufacture of unfinished goods. The cash proceeds realized from the sale of any Collateral shall be applied
to the Obligations in the order set forth in Section 11.5 hereof. Noncash proceeds will only be applied to the Obligations as they
are converted into cash. If any deficiency shall arise, Borrowers shall remain liable to Agent and Lenders therefor.

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(b)              
To the extent that Applicable Law imposes duties on the Agent to exercise remedies in a commercially reasonable manner,
each Borrower acknowledges and agrees that it is not commercially unreasonable for the Agent (i) to fail to incur expenses
reasonably deemed significant by the Agent to prepare Collateral for disposition or otherwise to complete raw material or work
in process into finished goods or other finished products for disposition, (ii) to fail to obtain third party consents for
access to Collateral to be disposed of, or to obtain or, if not required by other law, to fail to obtain governmental or third
party consents for the collection or disposition of Collateral to be collected or disposed of, (iii) to fail to exercise collection
remedies against Customers or other Persons obligated on Collateral or to remove Liens on or any adverse claims against Collateral,
(iv) to exercise collection remedies against Customers and other Persons obligated on Collateral directly or through the use
of collection agencies and other collection specialists, (v) to advertise dispositions of Collateral through publications
or media of general circulation, whether or not the Collateral is of a specialized nature, (vi) to contact other Persons,
whether or not in the same business as any Borrower, for expressions of interest in acquiring all or any portion of such Collateral,
(vii) to hire one or more professional auctioneers to assist in the disposition of Collateral, whether or not the Collateral
is of a specialized nature, (viii) to dispose of Collateral by utilizing internet sites that provide for the auction of assets
of the types included in the Collateral or that have the reasonable capacity of doing so, or that match buyers and sellers of assets,
(ix) to dispose of assets in wholesale rather than retail markets, (x) to disclaim disposition warranties, such as title,
possession or quiet enjoyment, (xi) to purchase insurance or credit enhancements to insure the Agent against risks of loss,
collection or disposition of Collateral or to provide to the Agent a guaranteed return from the collection or disposition of Collateral,
or (xii) to the extent deemed appropriate by the Agent, to obtain the services of other brokers, investment bankers, consultants
and other professionals to assist the Agent in the collection or disposition of any of the Collateral. Each Borrower acknowledges
that the purpose of this Section 11.1(b) is to provide non-exhaustive indications of what actions or omissions by the Agent would
not be commercially unreasonable in the Agent’s exercise of remedies against the Collateral and that other actions or omissions
by the Agent shall not be deemed commercially unreasonable solely on account of not being indicated in this Section 11.1(b). Without
limitation upon the foregoing, nothing contained in this Section 11.1(b) shall be construed to grant any rights to any Borrower
or to impose any duties on Agent that would not have been granted or imposed by this Agreement or by Applicable Law in the absence
of this Section 11.1(b).

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11.2          Agent’s
Discretion. Agent shall have the right in its Permitted Discretion to determine which rights, Liens, security interests
or remedies Agent may at any time pursue, relinquish, subordinate, or modify or to take any other action with respect thereto
and such determination will not in any way modify or affect any of Agent’s or Lenders’ rights hereunder.

11.3          Setoff. Subject
to Section 14.12, in addition to any other rights which Agent or any Lender may have under Applicable Law, upon the
occurrence of an Event of Default hereunder, Agent and such Lender shall have a right, immediately and without notice of any
kind, to apply any Borrower’s property held by Agent and such Lender to reduce the Obligations.

11.4          Rights
and Remedies not Exclusive. The enumeration of the foregoing rights and remedies is not intended to be exhaustive and the
exercise of any rights or remedy shall not preclude the exercise of any other right or remedies provided for herein or
otherwise provided by law, all of which shall be cumulative and not alternative.

11.5          Allocation
of Payments After Event of Default. Notwithstanding any other provisions of this Agreement to the contrary, after the
occurrence and during the continuance of an Event of Default, all amounts collected or received by the Agent on account of
the Obligations or any other amounts outstanding under any of the Other Documents or in respect of the Collateral may, at
Agent’s Permitted Discretion, be paid over or delivered as follows:

FIRST, to
the payment of all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) of the Agent in connection
with enforcing its rights and the rights of the Lenders under this Agreement and the Other Documents and any protective advances
made by the Agent with respect to the Collateral under or pursuant to the terms of this Agreement;

SECOND, to
payment of any fees owed to the Agent;

THIRD, to
the payment of all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) of each of the Lenders
to the extent owing to such Lender pursuant to the terms of this Agreement;

FOURTH, to
the payment of all of the Obligations consisting of accrued fees and interest, including the payment of all Hedge Liabilities;

FIFTH, to
the payment of the outstanding principal amount of the Obligations (including the payment or cash collateralization of any outstanding
Letters of Credit);

SIXTH, to
all other Obligations and other obligations which shall have become due and payable under the Other Documents or otherwise and
not repaid pursuant to clauses “FIRST” through “FIFTH” above; and

SEVENTH,
to the payment of the surplus, if any, to whomever may be lawfully entitled to receive such surplus.

In carrying
out the foregoing, (i) amounts received shall be applied in the numerical order provided until exhausted prior to application
to the next succeeding category; (ii) each of the Lenders shall receive (so long as it is not a Defaulting Lender) an amount
equal to its pro rata share (based on the proportion that the then outstanding Obligations owed to such Lender bears to the aggregate
then outstanding Obligations) of amounts available to be applied pursuant to clauses “FOURTH,” “FIFTH”
and “SIXTH” above; and (iii) to the extent that any amounts available for distribution pursuant to clause “FIFTH”
above are attributable to the issued but undrawn amount of outstanding Letters of Credit, such amounts shall be held by the Agent
in a cash collateral account and applied (A) first, to reimburse the Issuer from time to time for any drawings under such
Letters of Credit and (B) then, following the expiration of all Letters of Credit, to all other obligations of the types described
in clauses “FIFTH” and “SIXTH” above in the manner provided in this Section 11.5.

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		XII.	WAIVERS AND JUDICIAL PROCEEDINGS.

12.1          Waiver
of Notice. Each Borrower hereby waives notice of non-payment of any of the Receivables, demand, presentment, protest and
notice thereof with respect to any and all instruments, notice of acceptance hereof, notice of loans or advances made, credit
extended, Collateral received or delivered, or any other action taken in reliance hereon, and all other demands and
notices of any description, except such as are expressly provided for herein.

12.2          Delay. No
delay or omission on Agent’s or any Lender’s part in exercising any right, remedy or option shall operate as a
waiver of such or any other right, remedy or option or of any Default or Event of Default.

12.3          Jury
Waiver. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR
ANY OF THEM WITH RESPECT TO THIS AGREEMENT OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN
CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING,
AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL
COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER
OF THEIR RIGHT TO TRIAL BY JURY.

		XIII.	EFFECTIVE DATE AND TERMINATION.

13.1          Term.
This Agreement, which shall inure to the benefit of and shall be binding upon the respective successors and permitted assigns
of each Borrower, Agent and each Lender, shall become effective on the date hereof and shall continue in full force and
effect until November 2, 2015 (the “Term”) unless sooner terminated as herein provided. Borrowers may
terminate this Agreement at any time upon ninety (90) days’ prior written notice upon payment in full of the
Obligations. In the event the Obligations are prepaid in full prior to the last day of the Term (the date of such prepayment
hereinafter referred to as the “Early Termination Date”), Borrowers shall pay to Agent for the benefit of
Lenders an early termination fee in an amount equal to (x) $480,000 if the Early Termination Date occurs on or after the
Closing Date to and including the date immediately preceding the first anniversary of the Closing Date, (y) $320,000 if
the Early Termination Date occurs on or after the first anniversary of the Closing Date to and including the date immediately
preceding the second anniversary of the Closing Date, and (z) $160,000 if the Early Termination Date occurs on or after
the second anniversary of the Closing Date to and including the date immediately preceding the third anniversary of the
Closing Date.

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13.2          Termination. The
termination of the Agreement shall not affect any Borrower’s, Agent’s or any Lender’s rights, or any of the
Obligations having their inception prior to the effective date of such termination, and the provisions hereof shall continue
to be fully operative until all transactions entered into, rights or interests created or Obligations have been fully and
indefeasibly paid, disposed of, concluded or liquidated. The security interests, Liens and rights granted to Agent and
Lenders hereunder and the financing statements filed hereunder shall continue in full force and effect, notwithstanding the
termination of this Agreement or the fact that Borrowers’ Account may from time to time be temporarily in a zero
or credit position, until all of the Obligations of each Borrower have been indefeasibly paid and performed in full after the
termination of this Agreement or each Borrower has furnished Agent and Lenders with an indemnification satisfactory to Agent
and Lenders with respect thereto. Accordingly, each Borrower waives any rights which it may have under the Uniform Commercial
Code to demand the filing of termination statements with respect to the Collateral, and Agent shall not be required to send
such termination statements to each Borrower, or to file them with any filing office, unless and until this Agreement shall
have been terminated in accordance with its terms and all Obligations have been indefeasibly paid in full in immediately
available funds. All representations, warranties, covenants, waivers and agreements contained herein shall survive
termination hereof until all Obligations are indefeasibly paid and performed in full.

		XIV.	REGARDING AGENT.

14.1          Appointment. Each
Lender hereby designates PNC to act as Agent for such Lender under this Agreement and the Other Documents. Each Lender hereby
irrevocably authorizes Agent to take such action on its behalf under the provisions of this Agreement and the Other Documents
and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to or required
of Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto and Agent shall hold all
Collateral, payments of principal and interest, fees (except the fees set forth in Sections 3.3 and the Fee Letter), charges
and collections (without giving effect to any collection days) received pursuant to this Agreement, for the ratable benefit
of Lenders. Agent may perform any of its duties hereunder by or through its agents or employees. As to any matters
not expressly provided for by this Agreement (including collection of the Note) Agent shall not be required to exercise any
discretion or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so
acting or refraining from acting) upon the instructions of the Required Lenders, and such instructions shall be binding;
provided, however, that Agent shall not be required to take any action which exposes Agent to liability or which is contrary
to this Agreement or the Other Documents or Applicable Law unless Agent is furnished with an indemnification reasonably
satisfactory to Agent with respect thereto.

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14.2          Nature
of Duties. Agent shall have no duties or responsibilities except those expressly set forth in this Agreement and the
Other Documents. Neither Agent nor any of its officers, directors, employees or agents shall be (i) liable for any
action taken or omitted by them as such hereunder or in connection herewith, unless caused by their gross (not mere)
negligence or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment), or
(ii) responsible in any manner for any recitals, statements, representations or warranties made by any Borrower or any
officer thereof contained in this Agreement, or in any of the Other Documents or in any certificate, report, statement or
other document referred to or provided for in, or received by Agent under or in connection with, this Agreement or any of the
Other Documents or for the value, validity, effectiveness, genuineness, due execution, enforceability or sufficiency of this
Agreement, or any of the Other Documents or for any failure of any Borrower to perform its obligations hereunder. Agent shall
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 of the Other Documents, or to inspect the properties, books
or records of any Borrower. The duties of Agent as respects the Advances to Borrowers shall be mechanical and administrative
in nature; Agent shall not have by reason of this Agreement a fiduciary relationship in respect of any Lender; and nothing in
this Agreement, expressed or implied, is intended to or shall be so construed as to impose upon Agent any obligations in
respect of this Agreement except as expressly set forth herein.

14.3          Lack
of Reliance on Agent and Resignation. Independently and without reliance upon Agent or any other Lender, each Lender has
made and shall continue to make (i) its own independent investigation of the financial condition and affairs of each
Borrower and each Guarantor in connection with the making and the continuance of the Advances hereunder and the taking or not
taking of any action in connection herewith, and (ii) its own appraisal of the creditworthiness of each Borrower
and each Guarantor. Agent shall have no duty or responsibility, either initially or on a continuing basis, to provide any
Lender with any credit or other information with respect thereto, whether coming into its possession before making of the
Advances or at any time or times thereafter except as shall be provided by any Borrower pursuant to the terms hereof. Agent
shall not be responsible to any Lender for any recitals, statements, information, representations or warranties herein or in
any agreement, document, certificate or a statement delivered in connection with or for the execution, effectiveness,
genuineness, validity, enforceability, collectibility or sufficiency of this Agreement or any Other Document, or of the
financial condition of any Borrower or any Guarantor, or be required to make any inquiry concerning either the performance or
observance of any of the terms, provisions or conditions of this Agreement, the Note, the Other Documents or the financial
condition of any Borrower, or the existence of any Event of Default or any Default.

Agent may resign
on sixty (60) days’ written notice to each of Lenders and Borrowing Agent and upon such resignation, the Required Lenders
will promptly designate a successor Agent reasonably satisfactory to Borrowers.

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Any such successor
Agent shall succeed to the rights, powers and duties of Agent, and the term “Agent” shall mean such successor agent
effective upon its appointment, and the former Agent’s rights, powers and duties as Agent shall be terminated, without any
other or further act or deed on the part of such former Agent. After any Agent’s resignation as Agent, the provisions of
this Article XIV shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this
Agreement.

14.4          Certain
Rights of Agent. If Agent shall request instructions from Lenders with respect to any act or action (including failure to
act) in connection with this Agreement or any Other Document, Agent shall be entitled to refrain from such act or taking such
action unless and until Agent shall have received instructions from the Required Lenders; and Agent shall not incur liability
to any Person by reason of so refraining. Without limiting the foregoing, Lenders shall not have any right of action
whatsoever against Agent as a result of its acting or refraining from acting hereunder in accordance with the instructions of
the Required Lenders.

14.5          Reliance.
Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice,
statement, certificate, telex, teletype or telecopier message, cablegram, order or other document or telephone message
believed by it to be genuine and correct and to have been signed, sent or made by the proper person or entity, and,
with respect to all legal matters pertaining to this Agreement and the Other Documents and its duties hereunder, upon advice
of counsel selected by it. Agent may employ agents and attorneys-in-fact and shall not be liable for the default or
misconduct of any such agents or attorneys-in-fact selected by Agent with reasonable care.

14.6          Notice
of Default. Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default
hereunder or under the Other Documents, unless Agent has received notice from a Lender or Borrowing Agent referring to this
Agreement or the Other Documents, describing such Default or Event of Default and stating that such notice is a
“notice of default”. In the event that Agent receives such a notice, Agent shall give notice thereof to
Lenders. Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the
Required Lenders; provided, that, unless and until Agent shall have received such directions, Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it
shall deem advisable in the best interests of Lenders.

14.7          Indemnification. To
the extent Agent is not reimbursed and indemnified by Borrowers, each Lender will reimburse and indemnify Agent in proportion
to its respective portion of the Advances (or, if no Advances are outstanding, according to its Commitment Percentage), from
and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or
disbursements of any kind or nature whatsoever which may be imposed on, incurred by or asserted against Agent in performing
its duties hereunder, or in any way relating to or arising out of this Agreement or any Other Document; provided that,
Lenders shall not be liable for any portion of such liabilities, obligations, losses, damages, penalties, actions,
judgments, suits, costs, expenses or disbursements resulting from Agent’s gross (not mere) negligence or willful
misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment).

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14.8          Agent
in its Individual Capacity. With respect to the obligation of Agent to lend under this Agreement, the Advances made by it
shall have the same rights and powers hereunder as any other Lender and as if it were not performing the duties as Agent
specified herein; and the term “Lender” or any similar term shall, unless the context clearly otherwise
indicates, include Agent in its individual capacity as a Lender. Agent may engage in business with any Borrower as if it were
not performing the duties specified herein, and may accept fees and other consideration from any Borrower for services in
connection with this Agreement or otherwise without having to account for the same to Lenders.

14.9          Delivery
of Documents. To the extent Agent receives financial statements required under Sections 9.7, 9.8, 9.9, 9.12 and 9.13 or
Borrowing Base Certificates from any Borrower pursuant to the terms of this Agreement which any Borrower is not obligated to
deliver to each Lender, Agent will promptly furnish such documents and information to Lenders.

14.10      Borrowers’
Undertaking to Agent. Without prejudice to their respective obligations to Lenders under the other provisions of this
Agreement, each Borrower hereby undertakes with Agent to pay to Agent from time to time on demand all amounts from time to
time due and payable by it for the account of Agent or Lenders or any of them pursuant to this Agreement to the extent not
already paid. Any payment made pursuant to any such demand shall pro tanto satisfy the relevant Borrower’s obligations
to make payments for the account of Lenders or the relevant one or more of them pursuant to this Agreement.

14.11      No
Reliance on Agent’s Customer Identification Program. Each Lender acknowledges and agrees that neither such Lender,
nor any of its Affiliates, participants or assignees, may rely on the Agent to carry out such Lender’s,
Affiliate’s, participant’s or assignee’s customer identification program, or other obligations required or
imposed under or pursuant to the USA PATRIOT Act or the regulations thereunder, including the regulations contained in 31 CFR
103.121 (as hereafter amended or replaced, the “CIP Regulations”), or any other Anti-Terrorism Law,
including any programs involving any of the following items relating to or in connection with any Borrower, its Affiliates or
its agents, this Agreement, the Other Documents or the transactions hereunder or contemplated hereby: (1) any identity
verification procedures, (2) any record-keeping, (3) comparisons with government lists, (4) customer notices
or (5) other procedures required under the CIP Regulations or such other laws.

14.12      Other
Agreements. Each of the Lenders agrees that it shall not, without the express consent of Agent, and that it shall, to the
extent it is lawfully entitled to do so, upon the request of Agent, set off against the Obligations, any amounts owing by
such Lender to any Borrower or any deposit accounts of any Borrower now or hereafter maintained with such Lender. Anything in
this Agreement to the contrary notwithstanding, each of the Lenders further agrees that it shall not, unless
specifically requested to do so by Agent, take any action to protect or enforce its rights arising out of this Agreement or
the Other Documents, it being the intent of Lenders that any such action to protect or enforce rights under this Agreement
and the Other Documents shall be taken in concert and at the direction or with the consent of Agent or Required Lenders.

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		XV.	BORROWING AGENCY.

 

15.1         
Borrowing Agency Provisions.

(a)               
Each Borrower hereby irrevocably designates Borrowing Agent to be its attorney and agent and in such capacity to
borrow, sign and endorse notes, and execute and deliver all instruments, documents, writings and further assurances now or hereafter
required hereunder, on behalf of such Borrower or Borrowers, and hereby authorizes Agent to pay over or credit all loan proceeds
hereunder in accordance with the request of Borrowing Agent.

(b)              
The handling of this credit facility as a co-borrowing facility with a borrowing agent in the manner set forth in
this Agreement is solely as an accommodation to Borrowers and at their request. Neither Agent nor any Lender shall incur liability
to Borrowers as a result thereof. To induce Agent and Lenders to do so and in consideration thereof, each Borrower hereby indemnifies
Agent and each Lender and holds Agent and each Lender harmless from and against any and all liabilities, expenses, losses, damages
and claims of damage or injury asserted against Agent or any Lender by any Person arising from or incurred by reason of the handling
of the financing arrangements of Borrowers as provided herein, reliance by Agent or any Lender on any request or instruction from
Borrowing Agent or any other action taken by Agent or any Lender with respect to this Section 15.1 except due to willful misconduct
or gross (not mere) negligence by the indemnified party (as determined by a court of competent jurisdiction in a final and non-appealable
judgment).

(c)               
All Obligations shall be joint and several, and each Borrower shall make payment upon the maturity of the Obligations
by acceleration or otherwise, and such obligation and liability on the part of each Borrower shall in no way be affected by any
extensions, renewals and forbearance granted to Agent or any Lender to any Borrower, failure of Agent or any Lender to give any
Borrower notice of borrowing or any other notice, any failure of Agent or any Lender to pursue or preserve its rights against any
Borrower, the release by Agent or any Lender of any Collateral now or thereafter acquired from any Borrower, and such agreement
by each Borrower to pay upon any notice issued pursuant thereto is unconditional and unaffected by prior recourse by Agent or any
Lender to the other Borrowers or any Collateral for such Borrower’s Obligations or the lack thereof. Each Borrower waives
all suretyship defenses.

15.2          Waiver
of Subrogation. Each Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity, exoneration,
contribution of any other claim which such Borrower may now or hereafter have against the other Borrowers or other Person
directly or contingently liable for the Obligations hereunder, or against or with respect to the other
Borrowers’ property (including, without limitation, any property which is Collateral for the Obligations), arising from
the existence or performance of this Agreement, until termination of this Agreement and repayment in full of the
Obligations.

		XVI.	MISCELLANEOUS

16.1          Governing
Law. This Agreement shall be governed by and construed in accordance with the laws of the State of New York applied to
contracts to be performed wholly within the State of New York. Any judicial proceeding brought by or against any Borrower
with respect to any of the Obligations, this Agreement, the Other Documents or any related agreement may be brought in any
court of competent jurisdiction in the State of New York, United States of America, and, by execution and delivery of
this Agreement, each Borrower accepts for itself and in connection with its properties, generally and unconditionally, the
non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to be bound by any judgment rendered thereby in
connection with this Agreement. Each Borrower hereby waives personal service of any and all process upon it and consents that
all such service of process may be made by registered mail (return receipt requested) directed to Borrowing Agent at its
address set forth in Section 16.6 and service so made shall be deemed completed five (5) days after the same shall have been
so deposited in the mails of the United States of America, or, at the Agent’s option, by service upon Borrowing Agent
which each Borrower irrevocably appoints as such Borrower’s Agent for the purpose of accepting service within the State
of New York. Nothing herein shall affect the right to serve process in any manner permitted by law or shall limit the right
of Agent or any Lender to bring proceedings against any Borrower in the courts of any other jurisdiction. Each Borrower
waives any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based on
lack of jurisdiction or venue or based upon forum non conveniens. Each Borrower waives the right to remove any judicial
proceeding brought against such Borrower in any state court to any federal court. Any judicial proceeding by any Borrower
against Agent or any Lender involving, directly or indirectly, any matter or claim in any way arising out of, related to or
connected with this Agreement or any related agreement, shall be brought only in a federal or state court located in the
County of New York in the Borough of Manhattan, State of New York.

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16.2         
Entire Understanding.

(a)               
This Agreement and the documents executed concurrently herewith contain the entire understanding between each Borrower,
Agent and each Lender and supersede all prior agreements and understandings, if any, relating to the subject matter hereof. Any
promises, representations, warranties or guarantees not herein contained and hereinafter made shall have no force and effect unless
in writing, signed by each Borrower’s, Agent’s and each Lender’s respective officers. Neither this Agreement
nor any portion or provisions hereof may be changed, modified, amended, waived, supplemented, discharged, cancelled or terminated
orally or by any course of dealing, or in any manner other than by an agreement in writing, signed by the party to be charged.
Each Borrower acknowledges that it has been advised by counsel in connection with the execution of this Agreement and Other Documents
and is not relying upon oral representations or statements inconsistent with the terms and provisions of this Agreement.

(b)              
The Required Lenders, Agent with the consent in writing of the Required Lenders, and Borrowers may, subject to the
provisions of this Section 16.2 (b), from time to time enter into written supplemental agreements to this Agreement or the Other
Documents executed by Borrowers, for the purpose of adding or deleting any provisions or otherwise changing, varying or waiving
in any manner the rights of Lenders, Agent or Borrowers thereunder or the conditions, provisions or terms thereof or waiving any
Event of Default thereunder, but only to the extent specified in such written agreements; provided, however, that no such supplemental
agreement shall, without the consent of all Lenders:

(i)                
increase the Commitment Percentage, the maximum dollar commitment of any Lender or the Maximum Revolving Advance
Amount.

(ii)              
extend the maturity of any Note or the due date for any amount payable hereunder, or decrease the rate of interest
or reduce any fee payable by Borrowers to Lenders pursuant to this Agreement.

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(iii)            
alter the definition of the term Required Lenders or alter, amend or modify this Section 16.2(b).

(iv)            
release any Collateral during any calendar year (other than in accordance with the provisions of this Agreement)
having an aggregate value in excess of $250,000.

(v)              
change the rights and duties of Agent.

(vi)            
increase the Advance Rate above the Advance Rate in effect on the Closing Date.

(vii)          
release any Guarantor.

Any such
supplemental agreement shall apply equally to each Lender and shall be binding upon Borrowers, Lenders and Agent and all future
holders of the Obligations. In the case of any waiver, Borrowers, Agent and Lenders shall be restored to their former positions
and rights, and any Event of Default waived shall be deemed to be cured and not continuing, but no waiver of a specific Event of
Default shall extend to any subsequent Event of Default (whether or not the subsequent Event of Default is the same as the Event
of Default which was waived), or impair any right consequent thereon.

In the event
that Agent requests the consent of a Lender pursuant to this Section 16.2 and such consent is denied, then PNC may, at its option,
require such Lender to assign its interest in the Advances to PNC or to another Lender or to any other Person designated by the
Agent (the “Designated Lender”), for a price equal to (i) the then outstanding principal amount thereof
plus (ii) accrued and unpaid interest and fees due such Lender, which interest and fees shall be paid when collected from
Borrowers. In the event PNC elects to require any Lender to assign its interest to PNC or to the Designated Lender, PNC will so
notify such Lender in writing within forty five (45) days following such Lender’s denial, and such Lender will assign its
interest to PNC or the Designated Lender no later than five (5) days following receipt of such notice pursuant to a Commitment
Transfer Supplement executed by such Lender, PNC or the Designated Lender, as appropriate, and Agent.

Notwithstanding
(a) the existence of a Default or an Event of Default, (b) that any of the other applicable conditions precedent set
forth in Section 8.2 hereof have not been satisfied or (c) any other provision of this Agreement, Agent may at its discretion
and without the consent of the Required Lenders, voluntarily permit the sum of the outstanding Revolving Advances and the Maximum
Undrawn Amount at any time to exceed the Formula Amount ( the “Overadvance Threshold Amount”) by up to ten percent
(10%) of the Formula Amount for up to sixty (60) consecutive Business Days (the “Out-of-Formula Loans”); provided,
that, such outstanding Advances do not exceed the Maximum Revolving Advance Amount. If Agent is willing in its sole and absolute
discretion to make such Out-of-Formula Loans, such Out-of-Formula Loans shall be payable on demand and shall bear interest at the
Default Rate for Revolving Advances consisting of Domestic Rate Loans; provided that, if Lenders do make Out-of-Formula Loans,
neither Agent nor Lenders shall be deemed thereby to have changed the limits of Section 2.1(a). For purposes of this paragraph,
the discretion granted to Agent hereunder shall not preclude involuntary overadvances that may result from time to time due to
the fact that the Formula Amount was unintentionally exceeded for any reason, including, but not limited to, Collateral previously
deemed to be either “Eligible Receivables” or “Eligible Inventory,” as applicable, becomes ineligible,
collections of Receivables applied to reduce outstanding Revolving Advances are thereafter returned for insufficient funds or overadvances
are made to protect or preserve the Collateral. In the event Agent involuntarily permits the outstanding Revolving Advances to
exceed the Formula Amount by more than ten percent (10%), Agent shall use its efforts to have Borrowers decrease such excess in
as expeditious a manner as is practicable under the circumstances and not inconsistent with the reason for such excess. Revolving
Advances made after Agent has determined the existence of involuntary overadvances shall be deemed to be involuntary overadvances
and shall be decreased in accordance with the preceding sentence.

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In addition
to (and not in substitution of) the discretionary Revolving Advances permitted above in this Section 16.2, the Agent is hereby
authorized by Borrowers and the Lenders, from time to time in the Agent’s sole discretion, (A) after the occurrence
and during the continuation of a Default or an Event of Default, or (B) at any time that any of the other applicable conditions
precedent set forth in Section 8.2 hereof have not been satisfied, to make Revolving Advances to Borrowers on behalf of the Lenders
which the Agent, in its reasonable business judgment, deems necessary or desirable (a) to preserve or protect the Collateral,
or any portion thereof, (b) to enhance the likelihood of, or maximize the amount of, repayment of the Advances and other Obligations,
or (c) to pay any other amount chargeable to Borrowers pursuant to the terms of this Agreement; provided, that at any time
after giving effect to any such Revolving Advances the outstanding Revolving Advances do not exceed one hundred and ten percent
(110%) of the Formula Amount.

16.3         
Successors and Assigns; Participations; New Lenders.

(a)               
This Agreement shall be binding upon and inure to the benefit of Borrowers, Agent, each Lender, all future holders
of the Obligations and their respective successors and permitted assigns, except that no Borrower may assign or transfer any of
its rights or obligations under this Agreement without the prior written consent of Agent and each Lender.

(b)              
Each Borrower acknowledges that in the regular course of commercial banking business one or more Lenders may at any
time and from time to time sell participating interests in the Advances to other financial institutions (each such transferee or
purchaser of a participating interest, a “Participant”). Each Participant may exercise all rights of payment
(including rights of set-off) with respect to the portion of such Advances held by it or other Obligations payable hereunder as
fully as if such Participant were the direct holder thereof provided that Borrowers shall not be required to pay to any Participant
more than the amount which it would have been required to pay to Lender which granted an interest in its Advances or other Obligations
payable hereunder to such Participant had such Lender retained such interest in the Advances hereunder or other Obligations payable
hereunder and in no event shall Borrowers be required to pay any such amount arising from the same circumstances and with respect
to the same Advances or other Obligations payable hereunder to both such Lender and such Participant. Each Borrower hereby grants
to any Participant a continuing security interest in any deposits, money or other property actually or constructively held by such
Participant as security for the Participant’s interest in the Advances.

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(c)               
Any Lender, with the consent of Agent which shall not be unreasonably withheld or delayed, may sell, assign or transfer
all or any part of its rights and obligations under or relating to Revolving Advances or the Term Loan under this Agreement and
the Other Documents to one or more additional banks or financial institutions and one or more additional banks or financial institutions
may commit to make Advances hereunder (each a “Purchasing Lender”), in minimum amounts of not less than $1,000,000,
pursuant to a Commitment Transfer Supplement, executed by a Purchasing Lender, the transferor Lender, and Agent and delivered to
Agent for recording. Upon such execution, delivery, acceptance and recording, from and after the transfer effective date determined
pursuant to such Commitment Transfer Supplement, (i) Purchasing Lender thereunder shall be a party hereto and, to the extent
provided in such Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder with a Commitment Percentage
as set forth therein, and (ii) the transferor Lender thereunder shall, to the extent provided in such Commitment Transfer
Supplement, be released from its obligations under this Agreement, the Commitment Transfer Supplement creating a novation for that
purpose. Such Commitment Transfer Supplement shall be deemed to amend this Agreement to the extent, and only to the extent, necessary
to reflect the addition of such Purchasing Lender and the resulting adjustment of the Commitment Percentages arising from the purchase
by such Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under this Agreement and
the Other Documents. Each Borrower hereby consents to the addition of such Purchasing Lender and the resulting adjustment of the
Commitment Percentages arising from the purchase by such Purchasing Lender of all or a portion of the rights and obligations of
such transferor Lender under this Agreement and the Other Documents. Borrowers shall execute and deliver such further documents
and do such further acts and things in order to effectuate the foregoing.

(d)              
Any Lender, with the consent of Agent which shall not be unreasonably withheld or delayed, may directly or indirectly
sell, assign or transfer all or any portion of its rights and obligations under or relating to Revolving Advances or the Term Loan
under this Agreement and the Other Documents to an entity, whether a corporation, partnership, trust, limited liability company
or other entity that (i) is engaged in making, purchasing, holding or otherwise investing in bank loans and similar extensions
of credit in the ordinary course of its business and (ii) is administered, serviced or managed by the assigning Lender or
an Affiliate of such Lender (a “Purchasing CLO” and together with each Participant and Purchasing Lender, each
a “Transferee” and collectively the “Transferees”), pursuant to a Commitment Transfer Supplement
modified as appropriate to reflect the interest being assigned (“Modified Commitment Transfer Supplement”),
executed by any intermediate purchaser, the Purchasing CLO, the transferor Lender, and Agent as appropriate and delivered to Agent
for recording. Upon such execution and delivery, from and after the transfer effective date determined pursuant to such Modified
Commitment Transfer Supplement, (i) Purchasing CLO thereunder shall be a party hereto and, to the extent provided in such
Modified Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder and (ii) the transferor Lender
thereunder shall, to the extent provided in such Modified Commitment Transfer Supplement, be released from its obligations under
this Agreement, the Modified Commitment Transfer Supplement creating a novation for that purpose. Such Modified Commitment Transfer
Supplement shall be deemed to amend this Agreement to the extent, and only to the extent, necessary to reflect the addition of
such Purchasing CLO. Each Borrower hereby consents to the addition of such Purchasing CLO. Borrowers shall execute and deliver
such further documents and do such further acts and things in order to effectuate the foregoing.

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(e)               
Agent shall maintain at its address a copy of each Commitment Transfer Supplement and Modified Commitment Transfer
Supplement delivered to it and a register (the “Register”) for the recordation of the names and addresses of
each Lender and the outstanding principal, accrued and unpaid interest and other fees due hereunder. The entries in the Register
shall be conclusive, in the absence of manifest error, and each Borrower, Agent and Lenders may treat each Person whose name is
recorded in the Register as the owner of the Advance recorded therein for the purposes of this Agreement. The Register shall be
available for inspection by Borrowing Agent or any Lender at any reasonable time and from time to time upon reasonable prior notice.
Agent shall receive a fee in the amount of $3,500 payable by the applicable Purchasing Lender and/or Purchasing CLO upon the effective
date of each transfer or assignment (other than to an intermediate purchaser) to such Purchasing Lender and/or Purchasing CLO.

(f)               
Each Borrower authorizes each Lender to disclose to any Transferee and any prospective Transferee any and all financial
information in such Lender’s possession concerning such Borrower which has been delivered to such Lender by or on behalf
of such Borrower pursuant to this Agreement or in connection with such Lender’s credit evaluation of such Borrower.

16.4          Application
of Payments. Agent shall have the continuing and exclusive right to apply or reverse and re-apply any payment and any and
all proceeds of Collateral to any portion of the Obligations. To the extent that any Borrower makes a payment or Agent or any
Lender receives any payment or proceeds of the Collateral for any Borrower’s benefit, which are subsequently
invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor
in possession, receiver, custodian or any other party under any bankruptcy law, common law or equitable cause, then, to such
extent, the Obligations or part thereof intended to be satisfied shall be revived and continue as if such payment or proceeds
had not been received by Agent or such Lender.

16.5          Indemnity.
Each Borrower shall indemnify Agent, each Lender and each of their respective officers, directors, Affiliates, attorneys,
employees and agents from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses and disbursements of any kind or nature whatsoever (including fees and disbursements of counsel) which
may be imposed on, incurred by, or asserted against Agent or any Lender in any claim, litigation, proceeding or investigation
instituted or conducted by any Governmental Body or instrumentality or any other Person with respect to any aspect of, or any
transaction contemplated by, or referred to in, or any matter related to, this Agreement or the Other Documents, whether or
not Agent or any Lender is a party thereto, except to the extent that any of the foregoing arises out of the willful
misconduct of the party being indemnified (as determined by a court of competent jurisdiction in a final and non-appealable
judgment). Without limiting the generality of the foregoing, this indemnity shall extend to any liabilities, obligations,
losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever
(including fees and disbursements of counsel) asserted against or incurred by any of the indemnitees described above in this
Section 16.5 by any Person under any Environmental Laws or similar laws by reason of any Borrower’s or any other
Person’s failure to comply with laws applicable to solid or hazardous waste materials, including Hazardous Substances
and Hazardous Waste, or other Toxic Substances. Additionally, if any taxes (excluding taxes imposed upon or measured solely
by the net income of Agent and Lenders, but including any intangibles taxes, stamp tax, recording tax or franchise tax) shall
be payable by Agent, Lenders or Borrowers on account of the execution or delivery of this Agreement, or the execution,
delivery, issuance or recording of any of the Other Documents, or the creation or repayment of any of the Obligations
hereunder, by reason of any Applicable Law now or hereafter in effect, Borrowers will pay (or will promptly reimburse Agent
and Lenders for payment of) all such taxes, including interest and penalties thereon, and will indemnify and hold the
indemnitees described above in this Section 16.5 harmless from and against all liability in connection therewith.

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16.6          Notice.
Any notice or request hereunder may be given to Borrowing Agent or any Borrower or to Agent or any Lender at their respective
addresses set forth below or at such other address as may hereafter be specified in a notice designated as a notice of change
of address under this Section. Any notice, request, demand, direction or other communication (for purposes of this Section
16.6 only, a “Notice”) to be given to or made upon any party hereto under any provision of this Loan
Agreement shall be given or made by telephone or in writing (which includes by means of electronic transmission
(i.e., “e-mail”) or facsimile transmission or by setting forth such Notice on a site on the World Wide Web (a
“Website Posting”) if Notice of such Website Posting (including the information necessary to access such
site) has previously been delivered to the applicable parties hereto by another means set forth in this Section 16.6) in
accordance with this Section 16.6. Any such Notice must be delivered to the applicable parties hereto at the addresses and
numbers set forth under their respective names on Section 16.6 hereof or in accordance with any subsequent unrevoked Notice
from any such party that is given in accordance with this Section 16.6. Any Notice shall be effective:

(a)               
In the case of hand-delivery, when delivered;

(b)              
If given by mail, four days after such Notice is deposited with the United States Postal Service, with first-class
postage prepaid, return receipt requested;

(c)               
In the case of a telephonic Notice, when a party is contacted by telephone, if delivery of such telephonic Notice
is confirmed no later than the next Business Day by hand delivery, a facsimile or electronic transmission, a Website Posting or
an overnight courier delivery of a confirmatory Notice (received at or before noon on such next Business Day);

(d)              
In the case of a facsimile transmission, when sent to the applicable party’s facsimile machine’s telephone
number, if the party sending such Notice receives confirmation of the delivery thereof from its own facsimile machine;

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(e)               
In the case of electronic transmission, when actually received;

(f)               
In the case of a Website Posting, upon delivery of a Notice of such posting (including the information necessary
to access such site) by another means set forth in this Section 16.6; and

(g)              
If given by any other means (including by overnight courier), when actually received.

Any Lender
giving a Notice to Borrowing Agent or any Borrower shall concurrently send a copy thereof to the Agent, and the Agent shall promptly
notify the other Lenders of its receipt of such Notice.

		(A)	If to Agent or PNC at:

PNC Bank, National Association

2 North Lake Avenue

Suite 440

Pasadena, California 91101

Attention:Mark Tito

Telephone:(626) 432-7542

Facsimile: (626) 432-4589

E-mail:mark.tito@pnc.com

with a copy to:

Buchalter Nemer, P.C.

1000 Wilshire Boulevard, Suite 1500

Los Angeles, California 90017

Attention:Anthony R. Callobre, Esq.

Telephone:(213) 891-5024

Facsimile:(213) 630-5773

E-mail:acallobre@buchalter.com

		(B)	If to a Lender other than Agent, as specified on the signature pages hereof.

		(C)	If to Borrowing Agent or any Borrower:

Enservco Corporation

501 South Cherry Street, Suite 320

Denver, Colorado 80246

Attention:Rick D. Kasch

Telephone:(720) 974-3406

Facsimile:(720) 974-3416

E-mail: rkasch@enservco.com

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with a copy to:

Burns, Figa & Will, P.C.

6400 S. Fiddler’s Green Circle, Suite 100

Greenwood Village, Colorado 80111

Attention:Herrick K. Lidstone, Jr., Esq.

Telephone:(303) 796-2626

Facsimile:(303) 796-2777

E-mail: hklidstone@bfwlaw.com

16.7          Survival. The
obligations of Borrowers under Sections 2.2(f), 3.7, 3.8, 3.9, 4.19(h), and 16.5 and the obligations of Lenders under Section
14.7, shall survive termination of this Agreement and the Other Documents and payment in full of the Obligations.

16.8          Severability. If
any part of this Agreement is contrary to, prohibited by, or deemed invalid under Applicable Laws, such provision shall be
inapplicable and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be
invalidated thereby and shall be given effect so far as possible.

16.9          Expenses. All
costs and expenses including reasonable attorneys’ fees (including the allocated costs of in house counsel) and
disbursements incurred by Agent on its behalf or on behalf of Lenders (a) in all efforts made to enforce payment of any
Obligation or effect collection of any Collateral, or (b) in connection with the entering into, modification, amendment,
administration and enforcement of this Agreement, any other Document or any consents or waivers hereunder or thereunder and
all related agreements, documents and instruments, or (c) in instituting, maintaining, preserving, enforcing and
foreclosing on Agent’s security interest in or Lien on any of the Collateral, or maintaining, preserving or enforcing
any of Agent’s or any Lender’s rights hereunder, under any other Document and under all related agreements,
documents and instruments, whether through judicial proceedings or otherwise, or (d) in defending or prosecuting any
actions or proceedings arising out of or relating to Agent’s or any Lender’s transactions with any Borrower or
any Guarantor or (e) in connection with any advice given to Agent or any Lender with respect to its rights and
obligations under this Agreement, any Other Document and all related agreements, documents and instruments, may be charged to
Borrowers’ Account and shall be part of the Obligations.

16.10      Injunctive
Relief. Each Borrower recognizes that, in the event any Borrower fails to perform, observe or discharge any of its
obligations or liabilities under this Agreement, or threatens to fail to perform, observe or discharge such obligations or
liabilities, any remedy at law may prove to be inadequate relief to Lenders; therefore, Agent, if Agent so requests, shall be
entitled to temporary and permanent injunctive relief in any such case without the necessity of proving that actual
damages are not an adequate remedy.

16.11      Consequential
Damages. Neither Agent nor any Lender, nor any agent or attorney for any of them, shall be liable to any Borrower or any
Guarantor (or any Affiliate of any such Person) for indirect, punitive, exemplary or consequential damages arising from any
breach of contract, tort or other wrong relating to the establishment, administration or collection of the Obligations or as
a result of any transaction contemplated under this Agreement or any Other Document.

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16.12      Captions. The
captions at various places in this Agreement are intended for convenience only and do not constitute and shall not be
interpreted as part of this Agreement.

16.13      Counterparts;
Facsimile Signatures. This Agreement may be executed in any number of and by different parties hereto on separate
counterparts, all of which, when so executed, shall be deemed an original, but all such counterparts shall constitute one and
the same agreement. Any signature delivered by a party by facsimile transmission shall be deemed to be an original signature
hereto.

16.14      Construction. The
parties acknowledge that each party and its counsel have reviewed this Agreement and that the normal rule of construction to
the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of
this Agreement or any amendments, schedules or exhibits thereto.

16.15      Confidentiality;
Sharing Information. Agent, each Lender and each Transferee recognize that Enservco is a company with a class of
securities registered under Section 12(g) of the Exchange Act, and that some of the information to be furnished to Agent,
each Lender and each Transferee pursuant to this Agreement will be non-public information. In compliance with SEC Regulation
FD and any other confidentiality obligations established herein, Agent, each Lender and each Transferee shall hold all
non-public information obtained by Agent, such Lender or such Transferee pursuant to the requirements of this Agreement
in accordance with Agent’s, such Lender’s and such Transferee’s customary procedures for handling
confidential information of this nature; provided, however, Agent, each Lender and each Transferee may disclose such
confidential information (a) to its examiners, Affiliates, outside auditors, counsel and other professional advisors,
(b) to Agent, any Lender or to any prospective Transferees, and (c) as required or requested by any Governmental
Body or representative thereof or pursuant to legal process; provided, further that (i) unless specifically prohibited
by Applicable Law, Agent, each Lender and each Transferee shall use its reasonable best efforts prior to disclosure thereof,
to notify the applicable Borrower of the applicable request for disclosure of such non-public information (A) by a
Governmental Body or representative thereof (other than any such request in connection with an examination of the financial
condition of a Lender or a Transferee by such Governmental Body) or (B) pursuant to legal process and (ii) in no
event shall Agent, any Lender or any Transferee be obligated to return any materials furnished by any Borrower other than
those documents and instruments in possession of Agent or any Lender in order to perfect its Lien on the Collateral once the
Obligations have been paid in full and this Agreement has been terminated. Each Borrower acknowledges that from time to time
financial advisory, investment banking and other services may be offered or provided to such Borrower or one or more of its
Affiliates (in connection with this Agreement or otherwise) by any Lender or by one or more Subsidiaries or Affiliates of
such Lender and each Borrower hereby authorizes each Lender to share any information delivered to such Lender by such
Borrower and its Subsidiaries pursuant to this Agreement, or in connection with the decision of such Lender to enter into
this Agreement, to any such Subsidiary or Affiliate of such Lender, it being understood that any such Subsidiary or Affiliate
of any Lender receiving such information shall be bound by the provisions of this Section 16.15 as if it were a Lender
hereunder. Such authorization shall survive the repayment of the other Obligations and the termination of this Agreement.

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16.16      Publicity.
Subject to the requirements of Enservco under the Exchange Act and to the requirements of SEC Regulation FD, each Borrower
and each Lender hereby authorizes Agent to make appropriate announcements of the financial arrangement entered into among
Borrowers, Agent and Lenders, including announcements which are commonly known as tombstones, in such publications and to
such selected parties as Agent shall in its Permitted Discretion deem appropriate.

16.17      Certifications
From Banks and Participants; US PATRIOT Act. Each Lender or assignee or participant of a Lender that is not incorporated
under the Laws of the United States of America or a state thereof (and is not excepted from the certification requirement
contained in Section 313 of the USA PATRIOT Act and the applicable regulations because it is both (i) an affiliate of a
depository institution or foreign bank that maintains a physical presence in the United States or foreign country, and
(ii) subject to supervision by a banking authority regulating such affiliated depository institution or foreign bank)
shall deliver to the Agent the certification, or, if applicable, recertification, certifying that such Lender is not a
“shell” and certifying to other matters as required by Section 313 of the USA PATRIOT Act and the applicable
regulations: (1) within 10 days after the Closing Date, and (2) as such other times as are required under the USA
PATRIOT Act.

[Rest of page intentionally
left blank; signature pages follow]

 

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Each of the
parties has signed this Agreement as of the day and year first above written.

	 	BORROWERS:
	 	 
	 	ENSERVCO CORPORATION,
	 	a Delaware corporation
	 	 
	 	 
	 	By:
	 	Rick D. Kasch
	 	President
	 	 
	 	 
	 	DILLCO FLUID SERVICE, INC.
	 	a Kansas corporation
	 	 
	 	 
	 	By:
	 	Rick D. Kasch
	 	Treasurer
	 	 
	 	 
	 	HEAT WAVES HOT OIL SERVICES LLC,
	 	a Colordo limited liability company
	 	 
	 	 
	 	 
	 	By:
	 	Rick D. Kasch
	 	Manager

 

 

Revolving
Credit, Term Loan and Security Agreement

 

 

     

     

    

 

 

	 	PNC BANK, NATIONAL ASSOCIATION
	 	as Lender and as Agent
	 	 
	 	 
	 	By:
	 	Name:
	 	Title:
	 	 
	 	Commitment Percentage: 100%

 

 

 

 

 

Revolving Credit, Term Loan and Security Agreement

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