Document:

Exhibit
10.4

 

LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT
TRUST III, INC.

  

 

 

2014 STOCK INCENTIVE PLAN

(effective as of [ ], 2014)

  

 

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	Pages
	 	 
	Article I PURPOSE	1
	 	 
	Article II DEFINITIONS	1
	 	 
	Article III ADMINISTRATION	8
	 	 
	Article IV SHARE LIMITATION	11
	 	 
	Article V ELIGIBILITY
    AND GENERAL REQUIREMENTS FOR AWARDS	14
	 	 
	Article VI STOCK OPTIONS	15
	 	 
	Article VII STOCK APPRECIATION
    RIGHTS	17
	 	 
	Article VIII RESTRICTED
    STOCK	20
	 	 
	Article IX PERFORMANCE
    SHARES	22
	 	 
	Article X OTHER STOCK-BASED
    AWARDS	24
	 	 
	Article XI TERMINATION	25
	 	 
	Article XII CHANGE IN
    CONTROL PROVISIONS	27
	 	 
	Article XIII TERMINATION
    OR AMENDMENT OF PLAN	28
	 	 
	Article XIV UNFUNDED
    PLAN	29
	 	 
	Article XV GENERAL PROVISIONS	30
	 	 
	Article XVI EFFECTIVE
    DATE OF PLAN	33
	 	 
	Article XVII TERM OF
    PLAN	33
	 	 
	Article XVIII NAME OF
    PLAN	33
	 	 
	Exhibit A PERFORMANCE
    GOALS	A-1

 

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LIGHTSTONE VALUE PLUS REAL ESTATE INVESTMENT
TRUST III, INC.

  

 

 

2014 STOCK INCENTIVE PLAN

(effective as of [ ], 2014)

  

 

 

Article
I

PURPOSE

 

The purpose of this
2014 Stock Incentive Plan is to enhance the profitability and value of the Company for the benefit of its stockholders by enabling
the Company to offer Participants stock-based incentives in the Company to attract, retain and reward such individuals and strengthen
the mutuality of interests between such individuals and the Company’s stockholders.

 

Article
II

DEFINITIONS

 

For purposes of the
Plan, the following terms shall have the following meanings:

 

2.1           “Acquisition
Event” means a merger or consolidation in which the Company is not the surviving entity, any transaction that results
in the acquisition of all or substantially all of the Company’s outstanding Common Stock by a single person or entity or
by a group of persons and/or entities acting in concert, or the sale or transfer of all or substantially all of the Company’s
assets. The occurrence of an Acquisition Event shall be determined by the Committee in its sole discretion.

 

2.2           “Affiliate”
means each of the following: (a) Lightstone Value Plus REIT III LLC; (b) Lightstone Value Plus REIT III LP; (c) Lightstone SLP
III LLC; (d) any Subsidiary; (e) any Parent; (f) any corporation, trade or business (including, without limitation, a partnership
or limited liability company) that is directly or indirectly controlled 50% or more (whether by ownership of stock, assets or an
equivalent ownership interest or voting interest) by the Company; (g) any corporation, trade or business (including, without limitation,
a partnership or limited liability company) that directly or indirectly controls 50% or more (whether by ownership of stock, assets
or an equivalent ownership interest or voting interest) of the Company; and (h) any other entity in which the Company or any of
its Affiliates has a material equity interest and that is designated as an “Affiliate” by resolution of the Committee;
provided, however, that the Common Stock subject to any Award constitutes “service recipient stock” for
purposes of Section 409A of the Code or otherwise does not subject the Award to Section 409A of the Code.

 

    	 

    	 

    

 

2.3           “Award”
means any award under the Plan of any Stock Option, Stock Appreciation Right, Restricted Stock, Performance Share or Other Stock-Based
Award. All Awards shall be granted by, confirmed by, and subject to the terms of, a written or electronic agreement executed by
the Company and the Participant. Any reference herein to an agreement in writing shall be deemed to include an electronic writing
to the extent permitted by applicable law.

 

2.4           “Board”
means the Board of Directors of the Company.

 

2.5           “Cause”
means with respect to a Participant’s Termination of Employment or Termination of Consultancy, the following: (a) in the
case where there is no employment agreement, consulting agreement, change in control agreement or similar agreement in effect between
the Company or an Affiliate and the Participant at the time of the grant of the Award (or where there is such an agreement but
it does not define “cause” (or words of like import)), termination due to: (i) a Participant’s conviction of,
or plea of guilty or nolo contendere to, a felony; (ii) perpetration by a Participant of an illegal act, dishonesty or fraud that
could cause significant economic injury to the Company; (iii) a Participant’s insubordination, refusal to perform his or
her duties or responsibilities for any reason other than illness or incapacity or materially unsatisfactory performance of his
or her duties for the Company; (iv) continuing willful and deliberate failure by the Participant to perform the Participant’s
duties in any material respect; provided, that the Participant is given notice and an opportunity to effectuate a cure as
determined by the Committee; or (v) a Participant’s willful misconduct with regard to the Company that could have a material
adverse effect on the Company; or (b) in the case where there is an employment agreement, consulting agreement, change in control
agreement or similar agreement in effect between the Company or an Affiliate and the Participant at the time of the grant of the
Award that defines “cause” (or words of like import), “cause” as defined under such agreement; provided,
however, that with regard to any agreement under which the definition of “cause” only applies on occurrence
of a change in control, such definition of “cause” shall not apply until a change in control actually takes place and
then only with regard to a termination thereafter. With respect to a Participant’s Termination of Directorship, “cause”
means an act or failure to act that constitutes cause for removal of a director under applicable Maryland law.

 

2.6           “Change
in Control” has the meaning set forth in Section 12.2.

 

2.7           “Change
in Control Price” has the meaning set forth in Section 12.1.

 

2.8           “Code”
means the Internal Revenue Code of 1986, as amended. Any reference to any section of the Code also shall be a reference to any
successor provision and any Treasury Regulation promulgated thereunder.

 

2.9           “Committee”
means the Board, or a committee or subcommittee of the Board appointed from time to time by the Board to administer the Plan. Any
such committee or subcommittee may consist of two or more non-employee directors, each of whom is intended to be (i) to the extent
required by Rule 16b-3 promulgated under Section 16(b) of the Exchange Act, a “non-employee director” as defined in
Rule 16b-3, (ii) to the extent required by Section 162(m) of the Code, an “outside director” as defined in Section
162(m) of the Code, and (iii) an “independent director” as defined under any applicable securities exchange rules;
provided that if for any reason such committee or subcommittee does not meet the requirements of Rule 16b-3 or Section 162(m) of
the Code, such noncompliance shall not affect the validity of Awards, grants, interpretations or other actions of such committee
or subcommittee.

 

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2.10         “Common
Stock” means the common stock, $0.01 par value per share, of the Company.

 

2.11         “Company”
means Lightstone Value Plus Real Estate Investment Trust III, Inc., a Maryland corporation, and its successors by operation of
law.

 

2.12         “Consultant”
means any natural person who, directly or indirectly, provides bona fide consulting or advisory services to the Company or any
of its Affiliates pursuant to a written agreement, which are not in connection with the offer and sale of securities in a capital-raising
transaction, and do not, directly or indirectly, promote or maintain a market for the Company’s or its Affiliates’
securities.

 

2.13         “Detrimental
Activity” means:

 

(a)          disclosing,
divulging, furnishing or making available to anyone at any time, except as necessary in the furtherance of Participant’s
responsibilities to the Company or any of its Affiliates, either during or subsequent to Participant’s service relationship
with the Company or any of its Affiliates, any knowledge or information with respect to confidential or proprietary information,
methods, processes, plans or materials of the Company or any of its Affiliates, or with respect to any other confidential or proprietary
aspects of the business of the Company or any of its Affiliate, acquired by the Participant at any time prior to the Participant’s
Termination;

 

(b)          any
activity while employed or performing services that results, or if known could reasonably be expected to result, in the Participant’s
Termination that is classified by the Company as a termination for Cause;

 

(c)          (i)
directly or indirectly soliciting, enticing or inducing any employee of the Company or of any of its Affiliates to be employed
by a person or entity that is, directly or indirectly, in competition with the business or activities of the Company or any of
its Affiliates; (ii) directly or indirectly approaching any such employee for these purposes; (iii) authorizing or knowingly approving
the taking of any such action by a third party on behalf of any such person or entity, or assisting any such person or entity in
taking such action; or (iv) directly or indirectly soliciting, raiding, enticing or inducing any person or entity (other than the
U.S. Government or its agencies) that is, or at any time from and after the date of grant of the Award was, a customer of the Company
or any of its Affiliates to become a customer of the Participant or a third party for the same or similar products or services
that it purchased from the Company or any of its Affiliates, or approaching any customer of the Company or any of its Affiliates
for such purpose, or authorizing or knowingly approving the taking of any action by a third party for such purpose;

 

(d)          the
Participant’s Disparagement, or inducement of others to do so, of the Company or any of its Affiliates or their past and
present officers, directors, employees or products;

 

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(e)          the
Participant’s owning, managing, controlling, participating in, consulting with, rendering services for, or in any manner
engaging in, any business that, directly or indirectly, is competitive with the business conducted by the Company or any of its
Affiliates within any metropolitan area in which the Company or any of its Affiliates engages or has definitive plans to engage
in such business, or the rendering of services to such business if such business is otherwise prejudicial to or in conflict with
the interests of the Company or any of its Affiliates; or

 

(f)          a
material breach of any agreement between the Participant and the Company or any of its Affiliates (including, without limitation,
any employment agreement or noncompetition or nonsolicitation or confidentiality agreement).

 

Unless otherwise determined by the Committee at grant, Detrimental
Activity shall not be deemed to occur after the end of the one-year period following the Participant’s Termination.

 

For purposes of clauses (a), (c), (e) and (f) above, the Chief
Executive Officer of the Company has the authority to provide the Participant with written authorization to engage in the activities
contemplated thereby and no other person shall have authority to provide the Participant with such authorization. If it is determined
by a court of competent jurisdiction that any provision in the Plan in respect of Detrimental Activities is excessive in duration
or scope or otherwise is unenforceable, then such provision may be modified or supplemented by the court to render it enforceable
to the maximum extent permitted by law.

 

2.14         “Disability”
means with respect to a Participant’s Termination, a permanent and total disability as defined in Section 22(e)(3) of the
Code. A Disability shall only be deemed to occur at the time of the determination by the Committee of the Disability. Notwithstanding
the foregoing, for Awards that are subject to Section 409A of the Code, Disability shall mean that a Participant is disabled under
Section 409A(a)(2)(C)(i) or (ii) of the Code.

 

2.15         “Disparagement”
means making comments or statements to the press, the Company’s or its Affiliates’ employees, consultants or any individual
or entity with whom the Company or its Affiliates has a business relationship that could reasonably be expected to adversely affect
in any manner: (a) the conduct of the business of the Company or its Affiliates (including, without limitation, any products or
business plans or prospects); or (b) the business reputation of the Company or its Affiliates, or any of their products, or their
past or present officers, directors or employees.

 

2.16         “Effective
Date” means the effective date of the Plan as defined in Article XVI.

 

2.17         “Eligible
Employee” means an employee of the Company or an Affiliate. The term “Eligible Employee” also includes
an officer of the Company, regardless of whether such officer is an employee of the Company.

 

2.18         “Exchange
Act” means the Securities Exchange Act of 1934, as amended, and all rules and regulations promulgated thereunder.
Any references to any section of the Exchange Act shall also be a reference to any successor provision.

 

2.19         “Exercisable
Awards” has the meaning set forth in Section 4.2(d).

 

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2.20         “Fair
Market Value” means, on any date (i) if the Common Stock is listed on a national securities exchange or a national
market system, the closing sales price on such exchange or over such system on such date or, in the absence of reported sales on
such date, the closing sales price on the immediately preceding date on which sales were reported, or (ii) if the Common Stock
is not listed on a national securities exchange, the mean between the bid and offered prices as quoted by the applicable interdealer
quotation system; provided, that if the Common Stock is not quoted on such interdealer quotation system or it is determined
that the fair market value is not properly reflected by such quotations, Fair Market Value will be determined by such other method
as the Committee determines in good faith to be reasonable and in compliance with Code Section 409A.

 

2.21         “Family
Member” means “family member” as defined in Rule 701 under the Securities Act or, following the filing
of a Form S-8 pursuant to the Securities Act with respect to the Plan, as defined in Section A.1.(5) of the general instructions
of Form S-8, as may be amended from time to time.

 

2.22         “Incentive
Stock Option” means any Stock Option awarded to an Eligible Employee of the Company, its Subsidiaries and its Parent
(if any) under the Plan intended to be and designated as an “Incentive Stock Option” within the meaning of Section
422 of the Code.

 

2.23         “include,”
“includes” and “including” shall be construed as if followed by the phrase
“without limitation.”

 

2.24         “Limited
Stock Appreciation Right” has the meaning set forth in Section 7.5.

 

2.25         “Non-Employee
Director” means a non-employee director of the Company as defined in Rule 16b-3.

 

2.26         “Non-Qualified
Stock Option” means any Stock Option awarded under the Plan that is not an Incentive Stock Option.

 

2.27         “Other
Stock-Based Award” means an Award under Article X of the Plan that is valued in whole or in part by reference
to, or is payable in or otherwise based on, Common Stock, including, without limitation, a restricted stock unit or an Award valued
by reference to an Affiliate.

 

2.28         “Parent”
means any parent corporation of the Company within the meaning of Section 424(e) of the Code.

 

2.29         “Participant”
means an Eligible Employee, Non-Employee Director or Consultant to whom an Award has been granted pursuant to the Plan.

 

2.30         “Performance
Goals” has the meaning set forth on Exhibit A.

 

2.31         “Performance
Period” means the duration of the period during which receipt of an Award is subject to the satisfaction of performance
criteria, such period as determined by the Committee in its sole discretion.

 

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2.32         “Performance
Share” means an Award made pursuant to Article IX of the Plan of the right to receive Common Stock or cash
of an equivalent value at the end of a specified Performance Period.

 

2.33         “Person”
means any individual, corporation, partnership, limited liability company, firm, joint venture, association, joint-stock company,
trust, incorporated organization, governmental or regulatory or other entity.

 

2.34         “Plan”
means this Lightstone Value Plus Real Estate Investment Trust III, Inc. 2014 Stock Incentive Plan, as amended from time to time.

 

2.35         “Other
Extraordinary Event” has the meaning set forth in Section 4.2(b).

 

2.36         “Reference
Stock Option” has the meaning set forth in Section 7.1.

 

2.37         “Registration
Date” means the first date after the Effective Date on which (a) the Company sells its Common Stock in a bona fide
underwriting pursuant to a registration statement under the Securities Act or (b) any class of common equity securities of the
Company is required to be registered under Section 12 of the Exchange Act.

 

2.38         “Restricted
Stock” means a share of Common Stock issued under the Plan that is subject to restrictions under Article VIII.

 

2.39         “Restriction
Period” has the meaning set forth in Section 8.3(a).

 

2.40         “Retirement”
means a voluntary Termination of Employment or Termination of Consultancy at or after age 65 or such earlier date after age 55
as may be approved by the Committee, in its sole discretion, with respect to such Participant at the time of grant, or thereafter;
provided, that the exercise of such discretion does not make the applicable Award subject to Section 409A of the Code, except
that Retirement shall not include any involuntary Termination of Employment or Termination of Consultancy by the Company or an
Affiliate for any reason with or without Cause. With respect to a Participant’s Termination of Directorship, Retirement means
the failure to stand for reelection or the failure to be reelected on or after the date that a Participant has attained age 65
or, with the consent of the Board; provided, that the exercise of such discretion does not make the applicable Award subject
to Section 409A of the Code, before age 65 but after age 55.

 

2.41         “Rule
16b-3” means Rule 16b-3 under Section 16(b) of the Exchange Act as then in effect or any successor provision.

 

2.42         “Section
162(m) of the Code” means the exception for performance-based compensation under Section 162(m) of the Code and any
applicable Treasury regulations thereunder.

 

2.43         “Section
4.2 Event” has the meaning set forth in Section 4.2(b).

 

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2.44         “Securities
Act” means the Securities Act of 1933, as amended, and all rules and regulations promulgated thereunder. Any reference
to any section of the Securities Act shall also be a reference to any successor provision.

 

2.45         “Special
Unvested Options or Rights” has the meaning set forth in Section 11.1(a)(v).

 

2.46         “Stock
Appreciation Right” means the right pursuant to an Award granted under Article VII. A Tandem Stock Appreciation
Right shall mean the right to surrender to the Company all (or a portion) of a Stock Option in exchange for a number of shares
of Common Stock and/or cash, as determined by the Committee, equal to the difference between (a) the Fair Market Value on the date
such Stock Option (or such portion thereof) is surrendered, of the Common Stock covered by such Stock Option (or such portion thereof),
and (b) the aggregate exercise price of such Stock Option (or such portion thereof). A Non-Tandem Stock Appreciation Right shall
mean the right to receive a number of shares of Common Stock and/or cash, as determined by the Committee, equal to the difference
between (i) the Fair Market Value of a share of Common Stock on the date such right is exercised, and (ii) the aggregate exercise
price of such right, otherwise than on surrender of a Stock Option.

 

2.47         “Stock
Option” or “Option” means any option to purchase shares of Common Stock granted to Eligible
Employees, Non-Employee Directors or Consultants pursuant to Article VI.

 

2.48         “Subsidiary”
means any subsidiary corporation of the Company within the meaning of Section 424(f) of the Code.

 

2.49         “Tandem
Stock Appreciation Right” has the meaning set forth in Section 7.1.

 

2.50         “Ten
Percent Stockholder” means a person owning stock possessing more than 10% of the total combined voting power of all
classes of stock of the Company, its Subsidiaries or its Parent.

 

2.51         “Termination”
means a Termination of Consultancy, Termination of Directorship or Termination of Employment, as applicable.

 

2.52         “Termination
of Consultancy” means: (a) that the Consultant is no longer acting as a consultant to the Company or an Affiliate;
or (b) when an entity that is retaining a Participant as a Consultant ceases to be an Affiliate unless the Participant otherwise
is, or thereupon becomes, a Consultant to the Company or another Affiliate at the time the entity ceases to be an Affiliate. In
the event that a Consultant becomes an Eligible Employee or a Non-Employee Director upon the termination of his or her consultancy,
unless otherwise determined by the Committee, in its sole discretion, no Termination of Consultancy shall be deemed to occur until
such time as such Consultant is no longer a Consultant, an Eligible Employee or a Non-Employee Director. Notwithstanding the foregoing,
the Committee may, in its sole discretion, otherwise define Termination of Consultancy in the Award agreement or, if no rights
of a Participant are reduced, may otherwise define Termination of Consultancy thereafter.

 

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2.53         “Termination
of Directorship” means that the Non-Employee Director has ceased to be a director of the Company; except that if
a Non-Employee Director becomes an Eligible Employee or a Consultant upon the termination of his or her directorship, his or her
ceasing to be a director of the Company shall not be treated as a Termination of Directorship unless and until the Participant
has a Termination of Employment or Termination of Consultancy, as the case may be.

 

2.54         “Termination
of Employment” means: (a) a termination of employment (for reasons other than a military or personal leave of absence
granted by the Company) of a Participant from the Company and its Affiliates; or (b) when an entity that is employing a Participant
ceases to be an Affiliate, unless the Participant otherwise is, or thereupon becomes, employed by the Company or another Affiliate
at the time the entity ceases to be an Affiliate. In the event that an Eligible Employee becomes a Consultant or a Non-Employee
Director upon the termination of his or her employment, unless otherwise determined by the Committee, in its sole discretion, no
Termination of Employment shall be deemed to occur until such time as such Eligible Employee is no longer an Eligible Employee,
a Consultant or a Non-Employee Director. Notwithstanding the foregoing, the Committee may, in its sole discretion, otherwise define
Termination of Employment in the Award agreement or, if no rights of a Participant are reduced, may otherwise define Termination
of Employment thereafter.

 

2.55         “Transfer”
means: (a) when used as a noun, any direct or indirect transfer, sale, assignment, pledge, hypothecation, encumbrance or other
disposition (including the issuance of equity in a Person), whether for value or no value and whether voluntary or involuntary
(including by operation of law), and (b) when used as a verb, to directly or indirectly transfer, sell, assign, pledge, encumber,
charge, hypothecate or otherwise dispose of (including the issuance of equity in a Person) whether for value or for no value and
whether voluntarily or involuntarily (including by operation of law). ”Transferred” and “Transferrable”
shall have a correlative meaning.

 

2.56         “Transition
Period” means the “reliance period” under Treasury Regulation Section 1.162-27(f)(2), which ends on the
earliest to occur of the following: (a) the date of the first annual meeting of stockholders of the Company at which directors
are to be elected that occurs after December 31, 2014; (b) the date the Plan is materially amended for purposes of Treasury Regulation
Section 1.162-27(h)(1)(iii); or (c) the date all shares of Common Stock available for issuance under the Plan have been allocated.

 

Article
III

ADMINISTRATION

 

3.1           The
Committee.  The Plan shall be administered and interpreted by the Committee.

 

3.2           Grants
of Awards. The Committee shall have full authority to grant, pursuant to the terms of the Plan, to Eligible Employees,
Consultants and Non-Employee Directors: (1) Stock Options; (2) Stock Appreciation Rights; (3) Restricted Stock; (4) Performance
Shares; and (5) Other Stock-Based Awards. In particular, the Committee shall have the authority:

 

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(a)          to
select the Eligible Employees, Consultants and Non-Employee Directors to whom Awards may from time to time be granted hereunder;

 

(b)          to
determine whether and to what extent Awards are to be granted hereunder to one or more Eligible Employees, Consultants or Non-Employee
Directors;

 

(c)          to
determine, in accordance with the terms of the Plan, the number of shares of Common Stock to be covered by each Award granted hereunder;

 

(d)          to
determine the terms and conditions, not inconsistent with the terms of the Plan, of any Award granted hereunder (including, but
not limited to, the exercise or purchase price (if any), any restriction or limitation, any vesting schedule or acceleration thereof,
or any forfeiture restrictions or waiver thereof, regarding any Award and the shares of Common Stock relating thereto, based on
such factors, if any, as the Committee shall determine, in its sole discretion);

 

(e)          to
determine whether, to what extent and under what circumstances grants of Options and other Awards under the Plan are to operate
on a tandem basis and/or in conjunction with or apart from other awards made by the Company outside of the Plan;

 

(f)          to
determine whether and under what circumstances a Stock Option may be settled in cash, Common Stock and/or Restricted Stock under
Section 6.3(d);

 

(g)          to
determine whether, to what extent and under what circumstances Common Stock and other amounts payable with respect to an Award
under the Plan shall be deferred either automatically or at the election of the Participant, in any case, in a manner intended
to comply with Section 409A of the Code;

 

(h)          to
determine whether a Stock Option is an Incentive Stock Option or Non-Qualified Stock Option;

 

(i)          to
determine whether to require a Participant, as a condition of the granting of any Award, to not sell or otherwise dispose of shares
acquired pursuant to an Award for a period of time as determined by the Committee, in its sole discretion, following the date of
such Award; and

 

(j)          generally,
to exercise such powers and to perform such acts as the Committee deems necessary or expedient to promote the best interests of
the Company that are not in conflict with the provisions of the Plan.

 

3.3           Guidelines.
Subject to Article XIII, the Committee shall, in its sole discretion, have the authority to adopt, alter and repeal such
administrative rules, guidelines and practices governing the Plan and perform all acts, including the delegation of its responsibilities
(to the extent permitted by applicable law and applicable securities exchange rules), as it shall, from time to time, deem advisable;
to construe and interpret the terms and provisions of the Plan and any Award issued under the Plan (and any agreements relating
thereto); and to otherwise supervise the administration of the Plan. The Committee may, in its sole discretion, correct any defect,
supply any omission or reconcile any inconsistency in the Plan or in any agreement relating thereto in the manner and to the extent
it shall deem necessary to effectuate the purpose and intent of the Plan. The Committee may, in its sole discretion, adopt special
guidelines and provisions for persons who are residing in or employed in, or subject to, the taxes of, any domestic or foreign
jurisdictions to comply with applicable tax and securities laws of such domestic or foreign jurisdictions. To the extent applicable,
the Plan is intended to comply with the applicable requirements of Rule 16b-3 and with respect to Awards intended to be “performance-based,”
the applicable provisions of Section 162(m) of the Code, and the Plan shall be limited, construed and interpreted in a manner so
as to comply therewith.

 

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3.4           Decisions
Final. Any decision, interpretation or other action made or taken in good faith by or at the direction of the Company,
the Board or the Committee (or any of its members) arising out of or in connection with the Plan shall be within the absolute discretion
of all and each of them, as the case may be, and shall be final, binding and conclusive on the Company and all employees and Participants
and their respective heirs, executors, administrators, successors and assigns.

 

3.5           Procedures.
If the Committee is appointed, the Board shall designate one of the members of the Committee as chairman and the Committee shall
hold meetings, subject to the By-Laws of the Company, at such times and places as it shall deem advisable, including, without limitation,
by telephone conference or by written consent to the extent permitted by applicable law. A majority of the Committee members shall
constitute a quorum. All determinations of the Committee shall be made by a majority of its members. Any decision or determination
reduced to writing and signed by all the Committee members in accordance with the By-Laws of the Company shall be as fully effective
as if it had been made by a vote at a meeting duly called and held. The Committee shall keep minutes of its meetings and shall
make such rules and regulations for the conduct of its business as it shall deem advisable.

 

3.6           Designation
of Consultants/Liability.

 

(a)          The
Committee may, in its sole discretion, designate employees of the Company and professional advisors to assist the Committee in
the administration of the Plan and (to the extent permitted by applicable law and applicable securities exchange rules) may grant
authority to officers to grant Awards and/or execute agreements or other documents on behalf of the Committee.

 

(b)          The
Committee may, in its sole discretion, employ such legal counsel, consultants and agents as it may deem desirable for the administration
of the Plan and may rely upon any opinion received from any such counsel or consultant and any computation received from any such
consultant or agent. Expenses incurred by the Committee or the Board in the engagement of any such counsel, consultant or agent
shall be paid by the Company. The Committee, its members and any person designated pursuant to Section 3.6(a) above shall
not be liable for any action or determination made in good faith with respect to the Plan. To the maximum extent permitted by applicable
law, no officer of the Company or member or former member of the Committee or of the Board shall be liable for any action or determination
made in good faith with respect to the Plan or any Award granted under it.

 

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3.7           Indemnification.
To the maximum extent permitted by applicable law and the Certificate of Incorporation and By-Laws of the Company and to the extent
not covered by insurance directly insuring such person, each officer or employee of the Company or any Affiliate and member or
former member of the Committee or the Board shall be indemnified and held harmless by the Company against any cost or expense (including
reasonable fees of counsel reasonably acceptable to the Committee) or liability (including any sum paid in settlement of a claim
with the approval of the Committee), and advanced amounts necessary to pay the foregoing at the earliest time and to the fullest
extent permitted, arising out of any act or omission to act in connection with the administration of the Plan, except to the extent
arising out of such officer’s, employee’s, member’s or former member’s fraud or bad faith. Such indemnification
shall be in addition to any rights of indemnification the officers, employees, directors or members or former officers, directors
or members may have under applicable law or under the Certificate of Incorporation or By-Laws of the Company or any Affiliate.
Notwithstanding anything else herein, this indemnification will not apply to the actions or determinations made by an individual
with regard to Awards granted to him or her under the Plan.

 

Article
IV

SHARE LIMITATION

 

4.1           Shares.

 

(a)          General
Limitations. The aggregate number of shares of Common Stock that may be issued or used for reference purposes or with respect
to which Awards may be granted under the Plan shall not exceed five percent (5%) of the shares of Common Stock outstanding on a
fully diluted basis at any time (in any event subject to any increase or decrease pursuant to Section 4.2), which may be
either authorized and unissued Common Stock or Common Stock held in or acquired for the treasury of the Company or both. If any
Option, Stock Appreciation Right or Other Stock-Based Award granted under the Plan expires, terminates or is canceled for any reason
without having been exercised in full, the number of shares of Common Stock underlying any unexercised Award shall again be available
for the purpose of Awards under the Plan. If any shares of Restricted Stock, Performance Shares or Other Stock-Based Awards, denominated
in shares of Common Stock, granted under the Plan are forfeited for any reason, the number of forfeited shares of Restricted Stock,
Performance Shares or such Other Stock-Based Awards shall again be available for the purposes of Awards under the Plan, as provided
in this Section 4.1(a). If a Tandem Stock Appreciation Right or a Limited Stock Appreciation Right is granted in tandem
with an Option, such grant shall only apply once against the maximum number of shares of Common Stock that may be issued under
the Plan. Notwithstanding anything herein to the contrary, any share of Common Stock that again becomes available for grant pursuant
to this Section 4.1(a) shall be added back as one share of Common Stock to the maximum aggregate limit.

 

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(b)          Individual
Participant Limitations.

 

(i)          The
maximum number of shares of Common Stock subject to any Award of Stock Options, Stock Appreciation Rights or shares of Restricted
Stock for which the grant of such Award or the lapse of the relevant Restriction Period is subject to the attainment of Performance
Goals in accordance with Section 8.3(a)(ii), which may be granted under the Plan during any fiscal year of the Company
to each Eligible Employee or Consultant shall be 750,000 shares per type of Award (which shall be subject to any further increase
or decrease pursuant to Section 4.2); provided, that the maximum number of shares of Common Stock for all types of
Awards does not exceed 1,500,000 (which shall be subject to any further increase or decrease pursuant to Section 4.2) during
any fiscal year of the Company. If a Tandem Stock Appreciation Right is granted or a Limited Stock Appreciation Right is granted
in tandem with a Stock Option, it shall apply against the Eligible Employee’s or Consultant’s individual share limitations
for both Stock Appreciation Rights and Stock Options.

 

(ii)         The
maximum number of shares of Common Stock subject to any Award of Stock Options (other than Incentive Stock Options), Stock Appreciation
Rights or Other Stock-Based Awards that may be granted under the Plan during any fiscal year of the Company to each Non-Employee
Director shall be 750,000 shares per type of Award (which shall be subject to any further increase or decrease pursuant to Section
4.2); provided, that the maximum number of shares of Common Stock for all types of Awards does not exceed 1,500,000
(which shall be subject to any further increase or decrease pursuant to Section 4.2) during any fiscal year of the Company.
If a Tandem Stock Appreciation Right is granted or a Limited Stock Appreciation Right is granted in tandem with a Stock Option,
it shall apply against the Non-Employee Director’s individual share limitations for both Stock Appreciation Rights and Stock
Options.

 

(iii)        There
are no annual individual Eligible Employee or Consultant share limitations on Restricted Stock for which the grant of such Award
or the lapse of the relevant Restriction Period is not subject to attainment of Performance Goals in accordance with Section
8.3(a)(ii).

 

(iv)        The
maximum value at grant of Performance Shares that may be granted under the Plan with respect to any fiscal year of the Company
to each Eligible Employee or Consultant shall be $5,000,000. Each Performance Share shall be referenced to one share of Common
Stock and shall be charged against the available shares under the Plan at the time the unit value measurement is converted to a
referenced number of shares of Common Stock in accordance with Section 9.1.

 

(v)         The
individual Participant limitations set forth in this Section 4.1(b) shall be cumulative; that is, to the extent that
shares of Common Stock for which Awards are permitted to be granted to an Eligible Employee, Consultant or Non-Employee Director
during a fiscal year are not covered by an Award to such Eligible Employee, Consultant or Non-Employee Director, in a fiscal year,
the number of shares of Common Stock available for Awards to such Eligible Employee, Consultant or Non-Employee Director, shall
automatically increase in the subsequent fiscal years during the term of the Plan until used.

 

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(vi)        The
individual Participant limitations set forth in this Section 4.1(b) shall not apply prior to the Registration Date
and, following the Registration Date, this Section 4.1(b) shall not apply until the expiration of the Transition Period.

 

4.2           Changes.

 

(a)          The
existence of the Plan and the Awards granted hereunder shall not affect in any way the right or power of the Board or the stockholders
of the Company to make or authorize (i) any adjustment, recapitalization, reorganization or other change in the Company’s
capital structure or its business, (ii) any merger or consolidation of the Company or any Affiliate, (iii) any issuance of bonds,
debentures, preferred or prior preference stock ahead of or affecting the Common Stock, (iv) the dissolution or liquidation of
the Company or any Affiliate, (v) any sale or transfer of all or part of the assets or business of the Company or any Affiliate,
(vi) any Section 4.2 Event, or (vii) any other corporate act or proceeding.

 

(b)          Subject
to the provisions of Section 4.2(d), if there shall occur any such change in the capital structure of the Company by reason
of any stock split, reverse stock split, stock dividend, subdivision, combination or reclassification of shares that may be issued
under the Plan, any recapitalization, any merger, any consolidation, any spin off, any reorganization or any partial or complete
liquidation, or any other corporate transaction or event having an effect similar to any of the foregoing (a “Section
4.2 Event”), then (i) the aggregate number and/or kind of shares that thereafter may be issued under the Plan, (ii) the
number and/or kind of shares or other property (including cash) to be issued upon exercise of an outstanding Award or under other
Awards granted under the Plan, (iii) the purchase price thereof, and/or (iv) the individual Participant limitations set forth in
Section 4.1(b) (other than those based on cash limitations) shall be appropriately adjusted. In addition, subject to Section
4.2(d), if there shall occur any change in the capital structure or the business of the Company that is not a Section 4.2 Event
(an “Other Extraordinary Event”), including by reason of any extraordinary dividend (whether cash or stock),
any conversion, any adjustment, any issuance of any class of securities convertible or exercisable into, or exercisable for, any
class of stock, or any sale or transfer of all or substantially all the Company’s assets or business, then the Committee,
in its sole discretion, may adjust any Award and make such other adjustments to the Plan. Any adjustment pursuant to this Section
4.2 shall be consistent with the applicable Section 4.2 Event or the applicable Other Extraordinary Event, as the case may
be, and in such manner as the Committee may, in its sole discretion, deem appropriate and equitable to prevent substantial dilution
or enlargement of the rights granted to, or available for, Participants under the Plan. Any such adjustment determined by the Committee
shall be final, binding and conclusive on the Company and all Participants and their respective heirs, executors, administrators,
successors and permitted assigns. Except as expressly provided in this Section 4.2 or in the applicable Award agreement,
a Participant shall have no rights by reason of any Section 4.2 Event or any Other Extraordinary Event.

 

(c)          Fractional
shares of Common Stock resulting from any adjustment in Awards pursuant to Section 4.2(a) or Section 4.2(b) shall
be aggregated until, and eliminated at, the time of exercise by rounding-down for fractions less than one-half and rounding-up
for fractions equal to or greater than one-half. No cash settlements shall be made with respect to fractional shares eliminated
by rounding. Notice of any adjustment shall be given by the Committee to each Participant whose Award has been adjusted and such
adjustment (whether or not such notice is given) shall be effective and binding for all purposes of the Plan.

 

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(d)          In
the event of an Acquisition Event, the Committee may, in its sole discretion, terminate all outstanding and unexercised Stock Options
or Stock Appreciation Rights or any Other Stock Based Award that provides for a Participant elected exercise (“Exercisable
Awards”) effective as of the date of the Acquisition Event, by delivering notice of termination to each Participant at
least 20 days prior to the date of consummation of the Acquisition Event, in which case during the period from the date on which
such notice of termination is delivered to the consummation of the Acquisition Event, each such Participant shall have the right
to exercise his or her Exercisable Awards that are then outstanding to the extent vested as of the date on which such notice of
termination is delivered (or, at the discretion of the Committee, without regard to any limitations on exercisability otherwise
contained in the Award agreements), but any such exercise shall be contingent on the occurrence of the Acquisition Event; and,
provided, that if the Acquisition Event does not take place within a specified period after giving such notice for any reason
whatsoever, the notice and exercise pursuant thereto shall be null and void. For the avoidance of doubt, in the event of an Acquisition
Event, the Committee may, in its sole discretion, terminate any Exercisable Award for which the exercise price is equal to or exceeds
the Fair Market Value without payment of consideration therefor.

 

If an Acquisition Event occurs but the Committee does not terminate
the outstanding Awards pursuant to this Section 4.2(d), then the applicable provisions of Section 4.2(b) and Article
XII shall apply.

 

4.3           Minimum
Purchase Price. Notwithstanding any provision of the Plan to the contrary, if authorized but previously unissued shares
of Common Stock are issued under the Plan, such shares shall not be issued for a consideration that is less than as permitted under
applicable law.

 

Article
V

ELIGIBILITY AND GENERAL REQUIREMENTS FOR AWARDS

 

5.1           General
Eligibility. All Eligible Employees, Consultants, Non-Employee Directors and prospective employees and consultants are
eligible to be granted Awards, subject to the terms and conditions of the Plan. Eligibility for the grant of Awards and actual
participation in the Plan shall be determined by the Committee in its sole discretion.

 

5.2           Incentive
Stock Options. Notwithstanding anything herein to the contrary, only Eligible Employees of the Company, its Subsidiaries
and its Parent (if any) are eligible to be granted Incentive Stock Options under the Plan. Eligibility for the grant of an Incentive
Stock Option and actual participation in the Plan shall be determined by the Committee in its sole discretion.

 

5.3           General
Requirement. The vesting and exercise of Awards granted to a prospective employee or consultant are conditioned upon such
individual actually becoming an Eligible Employee or Consultant.

 

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Article
VI

STOCK OPTIONS

 

6.1           Options.
Each Stock Option granted under the Plan shall be one of two types: (a) an Incentive Stock Option; or (b) a Non-Qualified Stock
Option.

 

6.2           Grants.
The Committee shall, in its sole discretion, have the authority to grant to any Eligible Employee (subject to Section 5.2)
Incentive Stock Options, Non-Qualified Stock Options, or both types of Stock Options. The Committee shall, in its sole discretion,
have the authority to grant any Consultant or Non-Employee Director Non-Qualified Stock Options. To the extent that any Stock Option
does not qualify as an Incentive Stock Option (whether because of its provisions or the time or manner of its exercise or otherwise),
such Stock Option or the portion thereof that does not qualify shall constitute a separate Non-Qualified Stock Option.

 

6.3           Terms
of Options. Options granted under the Plan shall be subject to the following terms and conditions and shall be in such
form and contain such additional terms and conditions, not inconsistent with the terms of the Plan, as the Committee, in its sole
discretion, shall deem desirable:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Stock Option shall be determined by the Committee at the time
of grant; provided, that the per share exercise price of a Stock Option shall not be less than 100% (or, in the case of
an Incentive Stock Option granted to a Ten Percent Stockholder, 110%) of the Fair Market Value of the Common Stock at the time
of grant.

 

(b)          Stock
Option Term. The term of each Stock Option shall be fixed by the Committee; provided, that no Stock Option shall be
exercisable more than 10 years after the date the Option is granted; and provided, further, that the term of an Incentive
Stock Option granted to a Ten Percent Stockholder shall not exceed five years.

 

(c)          Exercisability.
Stock Options shall be exercisable at such time or times and subject to such terms and conditions as shall be determined by the
Committee at grant. If the Committee provides, in its discretion, that any Stock Option is exercisable subject to certain limitations
(including, without limitation, that such Stock Option is exercisable only in installments or within certain time periods or upon
attainment of certain financial results), the Committee may waive such limitations on the exercisability at any time at or after
grant in whole or in part (including, without limitation, waiver of the installment exercise provisions or acceleration of the
time at which such Stock Option may be exercised), based on such factors, if any, as the Committee shall determine, in its sole
discretion. Unless otherwise determined by the Committee at grant, the Option agreement shall provide that (i) if the Participant
engages in Detrimental Activity prior to any exercise of the Stock Option, all Stock Options held by the Participant shall thereupon
terminate and expire, (ii) as a condition of the exercise of a Stock Option, the Participant shall be required to certify (or shall
be deemed to have certified) at the time of exercise in a manner acceptable to the Company that the Participant is in compliance
with the terms and conditions of the Plan and that the Participant has not engaged in, and does not intend to engage in, any Detrimental
Activity, and (iii) if the Participant engages in Detrimental Activity during the one-year period commencing on the later of the
date the Stock Option is exercised or the date of the Participant’s Termination, the Company shall be entitled to recover
from the Participant at any time within one year after such date, and the Participant shall pay over to the Company, an amount
equal to any gain realized as a result of the exercise (whether at the time of exercise or thereafter).

 

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(d)          Method
of Exercise. Subject to whatever installment exercise and waiting period provisions apply under Section 6.3(c) above,
to the extent vested, Stock Options may be exercised in whole or in part at any time during the Option term, by giving written
notice of exercise to the Company specifying the number of shares of Common Stock to be purchased. Such notice shall be accompanied
by payment in full of the purchase price as follows: (i) in cash or by check, bank draft or money order payable to the order of
the Company; (ii) solely to the extent permitted by applicable law, if the Common Stock is traded on a national securities exchange
or quoted on a national quotation system sponsored by a national securities association, and the Committee authorizes, through
a procedure whereby the Participant delivers irrevocable instructions to a broker reasonably acceptable to the Committee to deliver
promptly to the Company an amount equal to the purchase price; or (iii) on such other terms and conditions as may be acceptable
to the Committee (including, without limitation, the relinquishment of Stock Options or by payment in full or in part in the form
of Common Stock owned by the Participant based on the Fair Market Value of the Common Stock on the payment date as determined by
the Committee, in its sole discretion). No shares of Common Stock shall be issued until payment therefor, as provided herein, has
been made or provided for.

 

(e)          Non-Transferability
of Options. No Stock Option shall be Transferable by the Participant otherwise than by will or by the laws of descent and distribution,
and all Stock Options shall be exercisable, during the Participant’s lifetime, only by the Participant. Notwithstanding the
foregoing, the Committee may determine, in its sole discretion, at the time of grant or thereafter that a Non-Qualified Stock Option
that is otherwise not Transferable pursuant to this Section is Transferable to a Family Member in whole or in part and in such
circumstances, and under such conditions, as determined by the Committee, in its sole discretion. A Non-Qualified Stock Option
that is Transferred to a Family Member pursuant to the preceding sentence (i) may not be subsequently Transferred otherwise than
by will or by the laws of descent and distribution and (ii) remains subject to the terms of the Plan and the applicable Award agreement.
Any shares of Common Stock acquired upon the exercise of a Non-Qualified Stock Option by a permissible transferee of a Non-Qualified
Stock Option or a permissible transferee pursuant to a Transfer after the exercise of the Non-Qualified Stock Option shall be subject
to the terms of the Plan and the applicable Award agreement.

 

(f)          Incentive
Stock Option Limitations. To the extent that the aggregate Fair Market Value (determined as of the time of grant) of the Common
Stock with respect to which Incentive Stock Options are exercisable for the first time by an Eligible Employee during any calendar
year under the Plan and/or any other stock option plan of the Company, any Subsidiary or any Parent exceeds $100,000, such Options
shall be treated as Non-Qualified Stock Options. Should any provision of the Plan not be necessary in order for the Stock Options
to qualify as Incentive Stock Options, or should any additional provisions be required, the Committee may, in its sole discretion,
amend the Plan accordingly, without the necessity of obtaining the approval of the stockholders of the Company.

 

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(g)          Form,
Modification, Extension and Renewal of Stock Options. Subject to the terms and conditions and within the limitations of the
Plan, Stock Options shall be evidenced by such form of agreement or grant as is approved by the Committee, and the Committee may,
in its sole discretion (i) modify, extend or renew outstanding Stock Options granted under the Plan (provided, that the
rights of a Participant are not reduced without his or her consent; and provided, further, that such action does
not subject the Stock Options to Section 409A of the Code), and (ii) accept the surrender of outstanding Stock Options (up
to the extent not theretofore exercised) and authorize the granting of new Stock Options in substitution therefor (to the extent
not theretofore exercised). Notwithstanding the foregoing, an outstanding Option may not be modified to reduce the exercise price
thereof nor may a new Option at a lower price be substituted for a surrendered Option (other than adjustments or substitutions
in accordance with Section 4.2), unless such action is approved by the stockholders of the Company.

 

(h)          Early
Exercise. The Committee may provide that a Stock Option include a provision whereby the Participant may elect at any time before
the Participant’s Termination to exercise the Stock Option as to any part or all of the shares of Common Stock subject to
the Stock Option prior to the full vesting of the Stock Option and such shares shall be subject to the provisions of Article
VI and treated as Restricted Stock. Any unvested shares of Common Stock so purchased may be subject to a repurchase option
in favor of the Company or to any other restriction the Committee determines to be appropriate.

 

(i)          Other
Terms and Conditions. Stock Options may contain such other provisions, which shall not be inconsistent with any of the terms
of the Plan, as the Committee shall, in its sole discretion, deem appropriate.

 

Article
VII

STOCK APPRECIATION RIGHTS

 

7.1           Tandem
Stock Appreciation Rights. Stock Appreciation Rights may be granted in conjunction with all or part of any Stock Option
(a “Reference Stock Option”) granted under the Plan (“Tandem Stock Appreciation Rights”).
In the case of a Non-Qualified Stock Option, such rights may be granted either at or after the time of the grant of such Reference
Stock Option. In the case of an Incentive Stock Option, such rights may be granted only at the time of the grant of such Reference
Stock Option.

 

7.2           Terms
and Conditions of Tandem Stock Appreciation Rights. Tandem Stock Appreciation Rights granted hereunder shall be subject
to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time by the
Committee in its sole discretion, and the following:

 

(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Tandem Stock Appreciation Right shall be determined by the
Committee at the time of grant; provided, that the per share exercise price of a Tandem Stock Appreciation Right shall not
be less than 100% of the Fair Market Value of the Common Stock at the time of grant.

 

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(b)          Term.
A Tandem Stock Appreciation Right or applicable portion thereof granted with respect to a Reference Stock Option shall terminate
and no longer be exercisable upon the termination or exercise of the Reference Stock Option, except that, unless otherwise determined
by the Committee, in its sole discretion, at the time of grant, a Tandem Stock Appreciation Right granted with respect to less
than the full number of shares covered by the Reference Stock Option shall not be reduced until and then only to the extent the
exercise or termination of the Reference Stock Option causes the number of shares covered by the Tandem Stock Appreciation Right
to exceed the number of shares remaining available and unexercised under the Reference Stock Option.

 

(c)          Exercisability.
Tandem Stock Appreciation Rights shall be exercisable only at such time or times and to the extent that the Reference Stock Options
to which they relate shall be exercisable in accordance with the provisions of Article VI, and shall be subject to the provisions
of Section 6.3(c).

 

(d)          Method
of Exercise. A Tandem Stock Appreciation Right may be exercised by the Participant by surrendering the applicable portion of
the Reference Stock Option. Upon such exercise and surrender, the Participant shall be entitled to receive the payment determined
in the manner prescribed in this Section 7.2. Stock Options that have been so surrendered, in whole or in part, shall no
longer be exercisable to the extent the related Tandem Stock Appreciation Rights have been exercised.

 

(e)          Payment.
Upon the exercise of a Tandem Stock Appreciation Right, a Participant shall be entitled to receive up to, but no more than, an
amount in cash and/or shares of Common Stock (as chosen by the Committee in its sole discretion at grant, or thereafter if no rights
of a Participant are reduced) equal in value to the excess of the Fair Market Value of one share of Common Stock over the Option
exercise price per share specified in the Reference Stock Option agreement, multiplied by the number of shares in respect of which
the Tandem Stock Appreciation Right shall have been exercised.

 

(f)          Deemed
Exercise of Reference Stock Option. Upon the exercise of a Tandem Stock Appreciation Right, the Reference Stock Option or part
thereof to which such Stock Appreciation Right is related shall be deemed to have been exercised for the purpose of the limitation
set forth in Article IV of the Plan on the number of shares of Common Stock to be issued under the Plan.

 

(g)          Non-Transferability.
Tandem Stock Appreciation Rights shall be Transferable only when and to the extent that the underlying Stock Option would be Transferable
under Section 6.3(e) of the Plan.

 

7.3           Non-Tandem
Stock Appreciation Rights. Non-Tandem Stock Appreciation Rights may also be granted without reference to any Stock Options
granted under the Plan.

 

7.4           Terms
and Conditions of Non-Tandem Stock Appreciation Rights. Non-Tandem Stock Appreciation Rights granted hereunder shall be
subject to such terms and conditions, not inconsistent with the provisions of the Plan, as shall be determined from time to time
by the Committee in its sole discretion, and the following:

 

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(a)          Exercise
Price. The exercise price per share of Common Stock subject to a Non-Tandem Stock Appreciation Right shall be determined by
the Committee at the time of grant; provided, that the per share exercise price of a Non-Tandem Stock Appreciation Right
shall not be less than 100% of the Fair Market Value of the Common Stock at the time of grant.

 

(b)          Term.
The term of each Non-Tandem Stock Appreciation Right shall be fixed by the Committee, but shall not be greater than 10 years after
the date the right is granted.

 

(c)          Exercisability.
Non-Tandem Stock Appreciation Rights shall be exercisable at such time or times and subject to such terms and conditions as shall
be determined by the Committee at grant. If the Committee provides, in its discretion, that any such right is exercisable subject
to certain limitations (including, without limitation, that it is exercisable only in installments or within certain time periods),
the Committee may waive such limitations on the exercisability at any time at or after grant in whole or in part (including, without
limitation, waiver of the installment exercise provisions or acceleration of the time at which such right may be exercised), based
on such factors, if any, as the Committee shall determine, in its sole discretion. Unless otherwise determined by the Committee
at grant, the Award agreement shall provide that (i) in the event the Participant engages in Detrimental Activity prior to any
exercise of the Non-Tandem Stock Appreciation Right, all Non-Tandem Stock Appreciation Rights held by the Participant shall thereupon
terminate and expire, (ii) as a condition of the exercise of a Non-Tandem Stock Appreciation Right, the Participant shall be required
to certify (or shall be deemed to have certified) at the time of exercise in a manner acceptable to the Company that the Participant
is in compliance with the terms and conditions of the Plan and that the Participant has not engaged in, and does not intend to
engage in, any Detrimental Activity, and (iii) in the event the Participant engages in Detrimental Activity during the one-year
period commencing on the later of the date the Non-Tandem Stock Appreciation Right is exercised or the date of the Participant’s
Termination, the Company shall be entitled to recover from the Participant at any time within one year after such date, and the
Participant shall pay over to the Company, an amount equal to any gain realized as a result of the exercise (whether at the time
of exercise or thereafter).

 

(d)          Method
of Exercise. Subject to whatever installment exercise and waiting period provisions apply under Section 7.4(c) above,
Non-Tandem Stock Appreciation Rights may be exercised in whole or in part at any time in accordance with the applicable Award agreement,
by giving written notice of exercise to the Company specifying the number of Non-Tandem Stock Appreciation Rights to be exercised.

 

(e)          Payment.
Upon the exercise of a Non-Tandem Stock Appreciation Right a Participant shall be entitled to receive, for each right exercised,
up to, but no more than, an amount in cash and/or shares of Common Stock (as chosen by the Committee in its sole discretion at
grant, or thereafter if no rights of a Participant are reduced) equal in value to the excess of the Fair Market Value of one share
of Common Stock on the date the right is exercised over the Fair Market Value of one share of Common Stock on the date the right
was awarded to the Participant.

 

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(f)          Non-Transferability.
No Non-Tandem Stock Appreciation Rights shall be Transferable by the Participant otherwise than by will or by the laws of descent
and distribution, and all such rights shall be exercisable, during the Participant’s lifetime, only by the Participant.

 

7.5           Limited
Stock Appreciation Rights. The Committee may, in its sole discretion, grant Tandem and Non-Tandem Stock Appreciation Rights
either as a general Stock Appreciation Right or as a limited stock appreciation right (a “Limited Stock Appreciation Right”).
Limited Stock Appreciation Rights may be exercised only upon the occurrence of a Change in Control or such other event as the Committee
may, in its sole discretion, designate at the time of grant or thereafter. Upon the exercise of Limited Stock Appreciation Rights,
except as otherwise provided in an Award agreement, the Participant shall receive in cash or Common Stock, as determined by the
Committee, an amount equal to the amount (a) set forth in Section 7.2(e) with respect to Tandem Stock Appreciation
Rights, or (b) set forth in Section 7.4(e) with respect to Non-Tandem Stock Appreciation Rights, as applicable.

 

Article
VIII

RESTRICTED STOCK

 

8.1           Awards
of Restricted Stock. Shares of Restricted Stock may be issued either alone or in addition to other Awards granted under
the Plan. The Committee shall, in its sole discretion, determine the Eligible Employees, Consultants and Non-Employee Directors,
to whom, and the time or times at which, grants of Restricted Stock shall be made, the number of shares to be awarded, the price
(if any) to be paid by the Participant (subject to Section 8.2), the time or times within which such Awards may be subject
to forfeiture, the vesting schedule and rights to acceleration thereof, and all other terms and conditions of the Awards. The Committee
may condition the grant or vesting of Restricted Stock upon the attainment of specified performance targets (including, the Performance
Goals specified in Exhibit A attached hereto) or such other factors as the Committee may determine, in its sole discretion,
including to comply with the requirements of Section 162(m) of the Code.

 

Unless otherwise determined
by the Committee at grant, each Award of Restricted Stock shall provide that in the event the Participant engages in Detrimental
Activity prior to, or during the one-year period after, any vesting of Restricted Stock, the Committee may direct that all unvested
Restricted Stock shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount
equal to the Fair Market Value at the time of vesting of any Restricted Stock that had vested in the period referred to above.

 

8.2           Awards
and Certificates. Eligible Employees, Consultants and Non-Employee Directors selected to receive Restricted Stock shall
not have any rights with respect to such Award, unless and until such Participant has delivered a fully executed copy of the agreement
evidencing the Award to the Company and has otherwise complied with the applicable terms and conditions of such Award. Further,
such Award shall be subject to the following conditions:

 

(a)          Purchase
Price. The purchase price of Restricted Stock shall be fixed by the Committee. Subject to Section 4.3, the purchase
price for shares of Restricted Stock may be zero to the extent permitted by applicable law, and, to the extent not so permitted,
such purchase price may not be less than par value.

 

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(b)          Acceptance.
Awards of Restricted Stock must be accepted within a period of 60 days (or such other period as the Committee may specify) after
the grant date, by executing a Restricted Stock agreement and by paying whatever price (if any) the Committee has designated thereunder.

 

(c)          Legend.
Each Participant receiving Restricted Stock shall be issued a stock certificate in respect of such shares of Restricted Stock,
unless the Committee elects to use another system, such as book entries by the transfer agent, as evidencing ownership of shares
of Restricted Stock. Any such certificate shall be registered in the name of such Participant, and shall, in addition to such legends
required by applicable securities laws, bear an appropriate legend referring to the terms, conditions, and restrictions applicable
to such Award, substantially in the following form:

 

“The anticipation, alienation,
attachment, sale, transfer, assignment, pledge, encumbrance or charge of the shares of stock represented hereby are subject to
the terms and conditions (including forfeiture) of the Lightstone Value Plus Real Estate Investment Trust III, Inc. (the “Company”)
2014 Stock Incentive Plan (as the same may be amended or amended and restated from time to time, the “Plan”)
and an agreement entered into between the registered owner and the Company dated __________. Copies of such Plan and agreement
are on file at the principal office of the Company.”

 

(d)          Custody.
If stock certificates are issued in respect of shares of Restricted Stock, the Committee may require that any stock certificates
evidencing such shares be held in custody by the Company until the restrictions thereon shall have lapsed, and that, as a condition
of any grant of Restricted Stock, the Participant shall have delivered a duly signed stock power, endorsed in blank, relating to
the Common Stock covered by such Award.

 

8.3           Restrictions
and Conditions. The shares of Restricted Stock awarded pursuant to the Plan shall be subject to the following restrictions
and conditions:

 

(a)          (i)          Restriction
Period. The Participant shall not be permitted to Transfer shares of Restricted Stock awarded under the Plan during the period
or periods set by the Committee (the “Restriction Period”) commencing on the date of such Award, as set forth
in the Restricted Stock Award agreement and such agreement shall set forth a vesting schedule and any events that would accelerate
vesting of the shares of Restricted Stock. Within these limits, based on service, attainment of performance goals pursuant to Section
8.3(a)(ii) and/or such other factors or criteria as the Committee may determine in its sole discretion, the Committee may condition
the grant or provide for the lapse of such restrictions in installments in whole or in part, or may accelerate the vesting of all
or any part of any Restricted Stock Award and/or waive the deferral limitations for all or any part of any Restricted Stock Award.

 

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(ii)         Objective
Performance Goals, Formulae or Standards. If the grant of shares of Restricted Stock or the lapse of restrictions is based
on the attainment of Performance Goals, the Committee shall establish the Performance Goals and the applicable vesting percentage
of the Restricted Stock Award applicable to each Participant or class of Participants in writing prior to the beginning of the
applicable fiscal year or at such later date as otherwise determined by the Committee and while the outcomes of the Performance
Goals are substantially uncertain. Such Performance Goals may incorporate provisions for disregarding (or adjusting for) changes
in accounting methods, corporate transactions (including, without limitation, dispositions and acquisitions) and other similar
type events or circumstances. With regard to a Restricted Stock Award that is intended to comply with Section 162(m) of the Code,
to the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise violate Section
162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based on one or more
of the performance criteria set forth in Exhibit A hereto.

 

(b)          Rights
as a Stockholder. Except as provided in this Section 8.3(b) and Section 8.3(a) above and as otherwise determined
by the Committee, the Participant shall have, with respect to the shares of Restricted Stock, all of the rights of a holder of
shares of Common Stock of the Company including, without limitation, the right to receive any dividends, the right to vote such
shares and, subject to and conditioned upon the full vesting of shares of Restricted Stock, the right to tender such shares. The
Committee may, in its sole discretion, determine at the time of grant that the payment of dividends shall be deferred until, and
conditioned upon, the expiration of the applicable Restriction Period.

 

(c)          Lapse
of Restrictions. If and when the Restriction Period expires without a prior forfeiture of the Restricted Stock, the certificates
for such shares shall be delivered to the Participant. All legends shall be removed from said certificates at the time of delivery
to the Participant, except as otherwise required by applicable law or other limitations imposed by the Committee.

 

Article
IX

PERFORMANCE SHARES

 

9.1           Award
of Performance Shares. Performance Shares may be awarded either alone or in addition to other Awards granted under the
Plan. The Committee shall, in its sole discretion, determine the Eligible Employees, Consultants and Non-Employee Directors, to
whom, and the time or times at which, Performance Shares shall be awarded, the number of Performance Shares to be awarded to any
person, the Performance Period during which, and the conditions under which, receipt of the Shares will be deferred, and the other
terms and conditions of the Award in addition to those set forth in Section 9.2.

 

Unless otherwise determined
by the Committee at grant, each Award of Performance Shares shall provide that in the event the Participant engages in Detrimental
Activity prior to, or during the one-year period after the later of the date of any vesting of Performance Shares or the date of
the Participant’s Termination, the Committee may direct (at any time within one year thereafter) that all unvested Performance
Shares shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount equal to
any gain the Participant realized from any Performance Shares that had vested in the period referred to above.

 

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Except as otherwise
provided herein, the Committee shall condition the right to payment of any Performance Share upon the attainment of objective performance
goals established pursuant to Section 9.2(c).

 

9.2           Terms
and Conditions. Performance Shares awarded pursuant to this Article IX shall be subject to the following terms and
conditions:

 

(a)          Earning
of Performance Share Award. At the expiration of the applicable Performance Period, the Committee shall determine the extent
to which the performance goals established pursuant to Section 9.2(c) are achieved and the percentage of each Performance
Share Award that has been earned.

 

(b)          Non-Transferability.
Subject to the applicable provisions of the Award agreement and the Plan, Performance Shares may not be Transferred during the
Performance Period.

 

(c)          Objective
Performance Goals, Formulae or Standards. The Committee shall establish the objective Performance Goals for the earning of
Performance Shares based on a Performance Period applicable to each Participant or class of Participants in writing prior to the
beginning of the applicable Performance Period or at such later date as permitted under Section 162(m) of the Code and while
the outcomes of the Performance Goals are substantially uncertain. Such Performance Goals may incorporate, if and only to the extent
permitted under Section 162(m) of the Code, provisions for disregarding (or adjusting for) changes in accounting methods, corporate
transactions (including, without limitation, dispositions and acquisitions) and other similar type events or circumstances. To
the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise violate Section
162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based on one or more
of the performance criteria set forth in Exhibit A hereto.

 

(d)          Dividends.
Unless otherwise determined by the Committee at the time of grant, amounts equal to any dividends declared during the Performance
Period with respect to the number of shares of Common Stock covered by a Performance Share will not be paid to the Participant.

 

(e)          Payment.
Following the Committee’s determination in accordance with Section 9.5(a), shares of Common Stock or, as determined
by the Committee in its sole discretion, the cash equivalent of such shares, shall be delivered to the Eligible Employee, Consultant
or Non-Employee Director, or his legal representative, in an amount equal to such individual’s earned Performance Share.
Notwithstanding the foregoing, the Committee may, in its sole discretion, award an amount less than the earned Performance Share
and/or subject the payment of all or part of any Performance Share to additional vesting, forfeiture and deferral conditions as
it deems appropriate.

 

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(f)          Accelerated
Vesting. Based on service, performance and/or such other factors or criteria, if any, as the Committee may determine, the Committee
may, in its sole discretion, at or after grant, accelerate the vesting of all or any part of any Performance Share Award and/or
waive the deferral limitations for all or any part of such Award.

 

Article
X

OTHER STOCK-BASED AWARDS

 

10.1         Other
Awards. The Committee, in its sole discretion, is authorized to grant to Eligible Employees, Consultants and Non-Employee
Directors Other Stock-Based Awards that are payable in, valued in whole or in part by reference to, or otherwise based on or related
to shares of Common Stock, including, but not limited to, shares of Common Stock awarded purely as a bonus and not subject to any
restrictions or conditions, shares of Common Stock in payment of the amounts due under an incentive or performance plan sponsored
or maintained by the Company or an Affiliate, performance units, dividend equivalent units, stock equivalent units, restricted
stock units and deferred stock units. To the extent permitted by law, the Committee may, in its sole discretion, permit Eligible
Employees and/or Non-Employee Directors to defer all or a portion of their cash compensation in the form of Other Stock-Based Awards
granted under the Plan, subject to the terms and conditions of any deferred compensation arrangement established by the Company,
which shall be intended to comply with Section 409A of the Code. Other Stock-Based Awards may be granted either alone or in addition
to or in tandem with other Awards granted under the Plan.

 

Unless otherwise determined
by the Committee at grant, each Other Stock-based Award shall provide that in the event the Participant engages in Detrimental
Activity prior to or during the one-year period after the later of the date of any vesting of Performance Shares or the date of
the Participant’s Termination, the Committee may direct (at any time within one year thereafter) that any unvested portion
of such Award shall be immediately forfeited to the Company and that the Participant shall pay over to the Company an amount equal
to any gain the Participant realized from any such Award that had vested in the period referred to above.

 

Subject to the provisions
of the Plan, the Committee shall, in its sole discretion, have authority to determine the Eligible Employees, Consultants and Non-Employee
Directors, to whom, and the time or times at which, such Awards shall be made, the number of shares of Common Stock to be awarded
pursuant to such Awards, and all other conditions of the Awards. The Committee may also provide for the grant of Common Stock under
such Awards upon the completion of a specified performance period.

 

The Committee may condition
the grant or vesting of Other Stock-Based Awards upon the attainment of specified Performance Goals set forth on Exhibit A
as the Committee may determine, in its sole discretion; provided, that to the extent that such Other Stock-Based Awards
are intended to comply with Section 162(m) of the Code, the Committee shall establish the objective Performance Goals for the vesting
of such Other Stock-Based Awards based on a performance period applicable to each Participant or class of Participants in writing
prior to the beginning of the applicable performance period or at such later date as permitted under Section 162(m) of the
Code and while the outcomes of the Performance Goals are substantially uncertain. Such Performance Goals may incorporate, if and
only to the extent permitted under Section 162(m) of the Code, provisions for disregarding (or adjusting for) changes in accounting
methods, corporate transactions (including, without limitation, dispositions and acquisitions) and other similar type events or
circumstances. To the extent any such provision would create impermissible discretion under Section 162(m) of the Code or otherwise
violate Section 162(m) of the Code, such provision shall be of no force or effect. The applicable Performance Goals shall be based
on one or more of the performance criteria set forth in Exhibit A hereto.

 

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10.2         Terms
and Conditions. Other Stock-Based Awards made pursuant to this Article X shall be subject to the following terms
and conditions:

 

(a)          Non-Transferability.
Subject to the applicable provisions of the Award agreement and the Plan, shares of Common Stock subject to Awards made under this
Article X may not be Transferred prior to the date on which the shares are issued, or, if later, the date on which any applicable
restriction, performance or deferral period lapses.

 

(b)          Dividends.
Unless otherwise determined by the Committee at the time of Award, subject to the provisions of the Award agreement and the Plan,
the recipient of an Award under this Article X shall not be entitled to receive, currently or on a deferred basis, dividends
or dividend equivalents with respect to the number of shares of Common Stock covered by the Award.

 

(c)          Vesting.
Any Award under this Article X and any Common Stock covered by any such Award shall vest or be forfeited to the extent so
provided in the Award agreement, as determined by the Committee, in its sole discretion.

 

(d)          Price.
Common Stock issued on a bonus basis under this Article X may be issued for no cash consideration; Common Stock purchased
pursuant to a purchase right awarded under this Article X shall be priced, as determined by the Committee in its sole discretion.

 

(e)          Payment.
Form of payment for the Other Stock-Based Award shall be specified in the Award agreement.

 

Article
XI

TERMINATION

 

11.1         Termination.
The following rules apply with regard to the Termination of a Participant.

 

(a)          Rules
Applicable to Stock Option and Stock Appreciation Rights. Unless otherwise determined by the Committee at grant (or, if no
rights of the Participant are reduced, thereafter):

 

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(i)          Termination
by Reason of Death, Disability or Retirement. If a Participant’s Termination is by reason of death, Disability or the
Participant’s Retirement, all Stock Options or Stock Appreciation Rights that are held by such Participant that are vested
and exercisable at the time of the Participant’s Termination may be exercised by the Participant (or, in the case of death,
by the legal representative of the Participant’s estate) at any time within a one-year period from the date of such Termination,
but in no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights; provided, however,
if the Participant dies within such exercise period, all unexercised Stock Options or Stock Appreciation Rights held by such Participant
shall thereafter be exercisable, to the extent to which they were exercisable at the time of death, for a period of one year from
the date of such death, but in no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights.

 

(ii)         Involuntary
Termination Without Cause. If a Participant’s Termination is by involuntary termination without Cause, all Stock Options
or Stock Appreciation Rights that are held by such Participant that are vested and exercisable at the time of the Participant’s
Termination may be exercised by the Participant at any time within a period of 90 days from the date of such Termination, but in
no event beyond the expiration of the stated term of such Stock Options or Stock Appreciation Rights.

 

(iii)        Voluntary
Termination.  If a Participant’s Termination is voluntary (other than a voluntary termination described in Section
11.2(a)(iv)(2), or a Retirement), all Stock Options or Stock Appreciation Rights that are held by such Participant that are
vested and exercisable at the time of the Participant’s Termination may be exercised by the Participant at any time within
a period of 30 days from the date of such Termination, but in no event beyond the expiration of the stated terms of such Stock
Options or Stock Appreciation Rights.

 

(iv)        Termination
for Cause. If a Participant’s Termination: (A) is for Cause, or (B) is a voluntary Termination (as provided in Section
11.1(a)(iii)) or a Retirement after the occurrence of an event that would be grounds for a Termination for Cause, all Stock
Options or Stock Appreciation Rights, whether vested or not vested, that are held by such Participant shall thereupon terminate
and expire as of the date of such Termination.

 

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(v)         Unvested
Stock Options and Stock Appreciation Rights. Stock Options or Stock Appreciation Rights that are not vested as of the date
of a Participant’s Termination for any reason shall terminate and expire as of the date of such Termination. Notwithstanding
the foregoing, if a Participant is deemed to have experienced a Termination of Employment in accordance with the last sentence
of Section 2.54 of the Plan, then (A) any Stock Options and any Stock Appreciation Rights that are not vested as of the
date of such Participant’s Termination of Employment in accordance with the last sentence of Section 2.54 of the Plan
(“Special Unvested Options or Rights”) shall not terminate or expire as of the date of such Termination of Employment
and shall remain outstanding until a Participant experiences a Termination of Employment (other than on account of the last sentence
of Section 2.54 of the Plan), but in no event beyond the expiration of the stated term of any such Special Unvested Options
or Rights, and (B) no Special Unvested Options or Rights will thereafter vest except as set forth in the next succeeding sentence.
If, after a Termination of Employment in accordance with the last sentence of Section 2.54 of the Plan, (1) a Participant
remains continuously employed by the Company or any of its Affiliates, and (2) subsequent thereto, such Participant becomes
regularly scheduled to work more than 24 hours per week, then any Special Unvested Options or Rights shall immediately vest as
to any shares of Common Stock that did not vest under the terms of such Special Unvested Options or Rights between the date of
such Participant’s Termination of Employment in accordance with the last sentence of Section 2.54 of the Plan and
the date such Participant became regularly scheduled to work more than 24 hours per week solely as a result of the application
of the immediately preceding sentence.

 

(b)          Rules
Applicable to Restricted Stock, Performance Shares and Other Stock-Based Awards. Unless otherwise determined by the Committee
at grant or thereafter, upon a Participant’s Termination for any reason: (i) during the relevant Restriction Period, all
Restricted Stock still subject to restriction shall be forfeited; and (ii) any unvested Performance Shares or Other Stock-Based
Awards shall be forfeited.

 

Article
XII

CHANGE IN CONTROL PROVISIONS

 

12.1         Benefits.
In the event of a Change in Control of the Company, and except as otherwise provided by the Committee in an Award agreement or
in a written employment agreement between the Company and a Participant, a Participant’s unvested Award shall vest in full
and a Participant’s Award shall be treated in accordance with one of the following methods as determined by the Committee
in its sole discretion:

 

(a)          Awards,
whether or not vested by their terms or pursuant to the preceding sentence, shall be continued, assumed, have new rights substituted
therefor or be treated in accordance with Section 4.2(d), as determined by the Committee in its sole discretion, and restrictions
to which any shares of Restricted Stock or any other Award granted prior to the Change in Control are subject shall not lapse upon
a Change in Control (other than with respect to vesting pursuant to the foregoing provisions of this Section 12.1) and the
Restricted Stock or other Award shall, where appropriate in the sole discretion of the Committee, receive the same or other appropriate
distribution as other Common Stock on such terms as determined by the Committee in its sole discretion; provided, however,
that, the Committee may, in its sole discretion, decide to award additional Restricted Stock or other Award in lieu of any cash
distribution. Notwithstanding anything to the contrary herein, for purposes of Incentive Stock Options, any assumed or substituted
Stock Option shall comply with the requirements of Treasury Regulation § 1.424-1 (and any amendments thereto).

 

(b)          The
Committee, in its sole discretion, may provide for the purchase of any Awards by the Company or an Affiliate (or the cancellation
and extinguishment thereof pursuant to the terms of a merger agreement entered into by the Company) for an amount of cash equal
to the excess of the Change in Control Price (as defined below) of the shares of Common Stock covered by such Awards, over the
aggregate exercise price of such Awards. For purposes of this Section 12.1, “Change in Control Price”
shall mean the highest price per share of Common Stock paid in any transaction related to a Change in Control of the Company.

 

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(c)          The
Committee may, in its sole discretion, provide for the cancellation of any particular Award or Awards without payment, if the Change
in Control Price is less than the Fair Market Value of such Award(s) on the date of grant.

 

(d)          Notwithstanding
anything else herein, the Committee may, in its sole discretion, provide for accelerated vesting or lapse of restrictions, of an
Award at the time of grant or at any time thereafter.

 

12.2         Change
in Control. Unless otherwise determined by the Committee in the applicable Award agreement or other written agreement approved
by the Committee, a “Change in Control” shall be deemed to occur following any transaction if: (a) any “person”
as such term is used in Sections 13(d) and 14(d) of the Exchange Act (other than the Company, any trustee or other fiduciary holding
securities under any employee benefit plan of the Company, or any company owned, directly or indirectly, by the stockholders of
the Company in substantially the same proportions as their ownership of Common Stock of the Company), becomes the “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of 40% or more of the combined voting power
of the then outstanding securities of the Company (or its successor corporation); or (b) the stockholders of the Company approve
a plan of complete liquidation of the Company or the consummation of the sale or disposition by the Company of all or substantially
all of the Company’s assets other than (i) the sale or disposition of all or substantially all of the assets of the Company
to a person or persons who beneficially own, directly or indirectly, at least 50% or more of the combined voting power of the outstanding
voting securities of the Company at the time of the sale, or (ii) pursuant to a spin-off type transaction, directly or indirectly,
of such assets to the stockholders of the Company.

 

Article
XIII

TERMINATION OR AMENDMENT OF PLAN

 

13.1         Termination
or Amendment. Notwithstanding any other provision of the Plan, the Board or the Committee may at any time, and from time
to time, amend, in whole or in part, any or all of the provisions of the Plan (including any amendment deemed necessary to ensure
that the Company may comply with any regulatory requirement referred to in Article XV), or suspend or terminate it entirely,
retroactively or otherwise; provided, however, that, unless otherwise required by law or specifically provided herein,
the rights of a Participant with respect to Awards granted prior to such amendment, suspension or termination, may not be impaired
without the consent of such Participant; and provided, further, without the approval of the stockholders of the Company
in accordance with the laws of the State of Maryland, to the extent required by the applicable provisions of Rule 16b-3 or Section
162(m) of the Code, pursuant to the requirements of any applicable securities exchange rule, or, to the extent applicable to Incentive
Stock Options, Section 422 of the Code, no amendment may be made that would:

 

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(a)          increase
the aggregate number of shares of Common Stock that may be issued under the Plan pursuant to Section 4.1 (except by operation
of Section 4.2);

 

(b)          increase
the maximum individual Participant limitations for a fiscal year under Section 4.1(b) (except by operation of Section
4.2);

 

(c)          change
the classification of Eligible Employees or Consultants eligible to receive Awards under the Plan;

 

(d)          decrease
the minimum option price of any Stock Option or Stock Appreciation Right;

 

(e)          extend
the maximum option period under Section 6.3;

 

(f)          alter
the Performance Goals for the Award of Restricted Stock, Performance Shares or Other Stock-Based Awards subject to satisfaction
of Performance Goals as set forth in Exhibit A;

 

(g)          award
any Stock Option or Stock Appreciation Right in replacement of a canceled Stock Option or Stock Appreciation Right with a higher
exercise price, except in accordance with Section 6.3(g); or

 

(h)          require
stockholder approval in order for the Plan to continue to comply with the applicable provisions of Section 162(m) of the Code or,
to the extent applicable to Incentive Stock Options, Section 422 of the Code. In no event may the Plan be amended without the approval
of the stockholders of the Company in accordance with the applicable laws of the State of Maryland to increase the aggregate number
of shares of Common Stock that may be issued under the Plan, decrease the minimum exercise price of any Stock Option or Stock Appreciation
Right, or to make any other amendment that would require stockholder approval under the rules of any other securities exchange
or system on which the Company’s securities are listed or traded at the request of the Company.

 

The Committee may amend
the terms of any Award theretofore granted, prospectively or retroactively, but, subject to Article IV or as otherwise specifically
provided herein, no such amendment or other action by the Committee shall adversely impair the rights of any holder without the
holder’s consent. Notwithstanding anything herein to the contrary, the Board or the Committee may amend the Plan or any Award
granted hereunder at any time without a Participant’s consent to comply with Code Section 409A or any other applicable law.

 

Article
XIV

UNFUNDED PLAN

 

14.1         Unfunded
Status of Plan. The Plan is an “unfunded” plan for incentive and deferred compensation. With respect to any
payments as to which a Participant has a fixed and vested interest but that are not yet made to a Participant by the Company, nothing
contained herein shall give any such Participant any rights that are greater than those of a general unsecured creditor of the
Company.

 

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Article
XV

GENERAL PROVISIONS

 

15.1         Legend.
The Committee may require each person receiving shares of Common Stock pursuant to an Award granted under the Plan to represent
to and agree with the Company in writing that the Participant is acquiring the shares without a view to distribution thereof and
such other securities law-related representations as the Committee shall request. In addition to any legend required by the Plan,
the certificates and/or book entry accounts for such shares may include any legend that the Committee, in its sole discretion,
deems appropriate to reflect any restrictions on Transfer.

 

All certificates and/or
book entry accounts for shares of Common Stock delivered under the Plan shall be subject to such stop transfer orders and other
restrictions as the Committee may, in its sole discretion, deem advisable under the rules, regulations and other requirements of
the Securities and Exchange Commission, the stock market or any national securities exchange system upon whose system the Common
Stock is then quoted, any applicable Federal or state securities law, and any applicable corporate law, and the Committee may cause
a legend or legends to be put on any such certificates to make appropriate reference to such restrictions.

 

15.2         Other
Plans. Nothing contained in the Plan shall prevent the Board from adopting other or additional compensation arrangements,
subject to stockholder approval if such approval is required; and such arrangements may be either generally applicable or applicable
only in specific cases.

 

15.3         No
Right to Employment/Directorship/Consultancy. Neither the Plan nor the grant of any Option or other Award hereunder shall
give any Participant or other employee, Consultant or Non-Employee Director any right with respect to continuance of employment,
consultancy or directorship by the Company or any Affiliate, nor shall they be a limitation in any way on the right of the Company
or any Affiliate by which an employee is employed or a Consultant or Non-Employee Director is retained to terminate his or her
employment, consultancy or directorship at any time.

 

15.4         Withholding
of Taxes. The Company shall have the right to deduct from any payment to be made pursuant to the Plan, or to otherwise
require, prior to the issuance or delivery of any shares of Common Stock or the payment of any cash hereunder, payment by the Participant
of, any Federal, state or local taxes required by law to be withheld. Upon the vesting of Restricted Stock (or other Award that
is taxable upon vesting), or upon making an election under Section 83(b) of the Code, a Participant shall pay all required withholding
to the Company. Any statutorily required withholding obligation with regard to any Participant may be satisfied, subject to the
advance consent of the Committee, by reducing the number of shares of Common Stock otherwise deliverable or by delivering shares
of Common Stock already owned. Any fraction of a share of Common Stock required to satisfy such tax obligations shall be disregarded
and the amount due shall be paid instead in cash by the Participant.

 

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15.5         No
Assignment of Benefits. No Award or other benefit payable under the Plan shall, except as otherwise specifically provided
by law or permitted by the Committee, be Transferable in any manner, and any attempt to Transfer any such benefit shall be void,
and any such benefit shall not in any manner be liable for or subject to the debts, contracts, liabilities, engagements or torts
of any person who shall be entitled to such benefit, nor shall it be subject to attachment or legal process for or against such
person.

 

15.6         Listing
and Other Conditions.

 

(a)          Unless
otherwise determined by the Committee, upon becoming and for as long as the Common Stock is listed on a national securities exchange
or system sponsored by a national securities association, the issue of any shares of Common Stock pursuant to an Award shall be
conditioned upon such shares being listed on such exchange or system. The Company shall have no obligation to issue such shares
unless and until such shares are so listed, and the right to exercise any Option or other Award with respect to such shares shall
be suspended until such listing has been effected.

 

(b)          If
at any time counsel to the Company shall be of the opinion that any sale or delivery of shares of Common Stock pursuant to an Option
or other Award is or may in the circumstances be unlawful or result in the imposition of excise taxes on the Company under the
statutes, rules or regulations of any applicable jurisdiction, the Company shall have no obligation to make such sale or delivery,
or to make any application or to effect or to maintain any qualification or registration under the Securities Act or otherwise,
with respect to shares of Common Stock or Awards, and the right to exercise any Option or other Award shall be suspended until,
in the opinion of said counsel, such sale or delivery shall be lawful or will not result in the imposition of excise taxes on the
Company.

 

(c)          Upon
termination of any period of suspension under this Section 15.6, any Award affected by such suspension that shall not then
have expired or terminated shall be reinstated as to all shares available before such suspension and as to shares that would otherwise
have become available during the period of such suspension, but no such suspension shall extend the term of any Award.

 

(d)          A
Participant shall be required to supply the Company with any certificates, representations and information that the Company requests
and otherwise cooperate with the Company in obtaining any listing, registration, qualification, exemption, consent or approval
the Company deems necessary or appropriate.

 

15.7         Governing
Law. The Plan and actions taken in connection herewith shall be governed and construed in accordance with the laws of the
State of Maryland (regardless of the law that might otherwise govern under applicable Maryland principles of conflict of laws).

 

15.8         Construction.
Wherever any words are used in the Plan in the masculine gender they shall be construed as though they were also used in the feminine
gender in all cases where they would so apply, and wherever any words are used herein in the singular form they shall be construed
as though they were also used in the plural form in all cases where they would so apply.

 

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15.9         Other
Benefits. No Award granted or paid out under the Plan shall be deemed compensation for purposes of computing benefits under
any retirement plan of the Company or its Affiliates nor affect any benefits under any other benefit plan now or subsequently in
effect under which the availability or amount of benefits is related to the level of compensation.

 

15.10         Costs.
The Company shall bear all expenses associated with administering the Plan, including expenses of issuing Common Stock pursuant
to any Awards hereunder.

 

15.11         No
Right to Same Benefits. The provisions of Awards need not be the same with respect to each Participant, and such Awards
to individual Participants need not be the same in subsequent years.

 

15.12         Death/Disability.
The Committee may in its sole discretion require the transferee of a Participant to supply it with written notice of the Participant’s
death or Disability and to supply it with a copy of the will (in the case of the Participant’s death) or such other evidence
as the Committee deems necessary to establish the validity of the transfer of an Award. The Committee may, in its discretion, also
require the agreement of the transferee to be bound by all of the terms and conditions of the Plan.

 

15.13         Section
16(b) of the Exchange Act. On and after the Registration Date, all elections and transactions under the Plan by persons
subject to Section 16 of the Exchange Act involving shares of Common Stock are intended to comply with any applicable exemptive
condition under Rule 16b-3. The Committee may, in its sole discretion, establish and adopt written administrative guidelines, designed
to facilitate compliance with Section 16(b) of the Exchange Act, as it may deem necessary or proper for the administration and
operation of the Plan and the transaction of business thereunder.

 

15.14         Section
409A of the Code. Although the Company does not guarantee the particular tax treatment of an Award granted under the Plan,
Awards made under the Plan are intended to comply with, or be exempt from, the applicable requirements of Section 409A of the Code
and the Plan and any Award agreement hereunder shall be limited, construed and interpreted in accordance with such intent. Notwithstanding
anything herein to the contrary, any provision in the Plan that is inconsistent with Section 409A of the Code shall be deemed to
be amended to comply with Section 409A of the Code and to the extent such provision cannot be amended to comply therewith, such
provision shall be null and void.

 

15.15         Successor
and Assigns. The Plan shall be binding on all successors and permitted assigns of a Participant, including, without limitation,
the estate of such Participant and the executor, administrator or trustee of such estate.

 

15.16         Severability
of Provisions. If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability
shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such provisions had not been included.

 

15.17         Payments
to Minors, Etc. Any benefit payable to or for the benefit of a minor, an incompetent person or other person incapable
of receipt thereof shall be deemed paid when paid to such person’s guardian or to the party providing or reasonably appearing
to provide for the care of such person, and such payment shall fully discharge the Committee, the Board, the Company, its Affiliates
and their employees, agents and representatives with respect thereto.

 

    	32

    	 

    

 

15.18         Headings
and Captions. The headings and captions herein are provided for reference and convenience only, shall not be considered
part of the Plan, and shall not be employed in the construction of the Plan.

 

15.19         Transition
Period. The Plan has been adopted by the Board and approved by the Company’s stockholder, both of which occurred
prior to the occurrence of a Registration Date. The Plan is intended to constitute a plan described in Treasury Regulation Section
1.162-27(f)(1), pursuant to which the deduction limits under Section 162(m) of the Code do not apply during the applicable reliance
period. The reliance period shall end on the earliest date identified in the definition of “Transition Period” contained
in Section 2.56 of the Plan.

 

Article
XVI

EFFECTIVE DATE OF PLAN

 

The Plan shall become
effective upon adoption by the Board or such later date as provided in the adopting resolution, subject to the approval of the
Plan by the stockholders of the Company within 12 months before or after adoption of the Plan by the Board in accordance with the
laws of the State of Maryland.

 

Article
XVII

TERM OF PLAN

 

The Plan was adopted
by the Board on [ ], 2014, and was approved by the Company’s stockholder on [ ], 2014. No Award shall be granted pursuant
to the Plan on or after [ ], 2019, but Awards granted prior to such date may, and the Committee’s authority to administer
the terms of such Awards, extend beyond that date; provided, however, that no Award (other than a Stock Option or
Stock Appreciation Right) that is intended to be “performance-based” under Section 162(m) of the Code shall be granted
on or after the fifth anniversary of the stockholder approval of the Plan unless the Performance Goals set forth on Exhibit
A are reapproved (or other designated performance goals are approved) by the stockholders no later than the first stockholder
meeting that occurs in the fifth year following the year in which stockholders approve the Performance Goals set forth on Exhibit
A.

 

Article
XVIII

NAME OF PLAN

 

The Plan shall be known
as the “Lightstone Value Plus Real Estate Investment Trust III, Inc. 2014 Stock Incentive Plan.”

 

    	33

    	 

    

 

Exhibit
A

PERFORMANCE GOALS

 

To the extent permitted
under Section 162(m) of the Code, performance goals established for purposes of the grant or vesting of Awards of Restricted Stock,
Other Stock-Based Awards and/or Performance Shares, each intended to be “performance-based” under Section 162(m) of
the Code, shall be based on the attainment of certain target levels of, or a specified increase or decrease (as applicable) in
one or more of the following performance goals (“Performance Goals”):

 

(a)          earnings
per share;

 

(b)          operating
income;

 

(c)          net
income;

 

(d)          cash
flow;

 

(e)          gross
profit;

 

(f)          gross
profit return on investment;

 

(g)          gross
margin return on investment;

 

(h)          gross
margin;

 

(i)          working
capital;

 

(j)          earnings
before interest and taxes;

 

(k)          earnings
before interest, tax, depreciation and amortization;

 

(l)          return
on equity;

 

(m)          return
on assets;

 

(n)          return
on capital;

 

(o)          return
on invested capital;

 

(p)          net
revenues;

 

(q)          gross
revenues;

 

(r)          revenue
growth;

 

(s)          total
shareholder return;

 

    	A-1

    	 

    

 

(t)          economic
value added;

 

(u)          specified
objectives with regard to limiting the level of increase in all or a portion of the Company’s bank debt or other long-term
or short-term public or private debt or other similar financial obligations of the Company, which may be calculated net of cash
balances and/or other offsets and adjustments as may be established by the Committee in its sole discretion;

 

(v)         the
fair market value of the shares of the Company’s Common Stock;

 

(w)          the
growth in the value of an investment in the Company’s Common Stock assuming the reinvestment of dividends; or

 

(x)          reduction
in expenses.

 

To the extent permitted
under Section 162(m) of the Code, the Committee may, in its sole discretion, also exclude, or adjust to reflect, the impact of
an event or occurrence that the Committee determines should be appropriately excluded or adjusted, including:

 

(i)          restructurings,
discontinued operations, extraordinary items or events, and other unusual or non-recurring charges as described in Accounting Principles
Board Opinion No. 30 and/or management’s discussion and analysis of financial condition and results of operations appearing
or incorporated by reference in the Company’s Form 10-K for the applicable year;

 

(ii)         an
event either not directly related to the operations of the Company or not within the reasonable control of the Company’s
management; or

 

(iii)        a
change in tax law or accounting standards required by generally accepted accounting principles.

 

Performance goals may
also be based upon individual Participant performance goals, as determined by the Committee, in its sole discretion.

 

In addition, such Performance
Goals may be based upon the attainment of specified levels of Company (or subsidiary, division, other operational unit or administrative
department of the Company) performance under one or more of the measures described above relative to the performance of other corporations.
To the extent permitted under Section 162(m) of the Code, but only to the extent permitted under Section 162(m) of the Code (including,
without limitation, compliance with any requirements for stockholder approval), the Committee may also:

 

(a)          designate
additional business criteria on which the performance goals may be based; or

 

		(b)	adjust, modify or amend the aforementioned business criteria.

 

    	A-2EXHIBIT 10.1
	 	 

 

AMENDED AND RESTATED

CREDIT AGREEMENT

 

by and among

 

EMPIRE RESOURCES, INC.

as Borrower,

 

 

COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK
B.A., “RABOBANK 

NEDERLAND”, NEW YORK BRANCH,

as Lead Arranger, Agent,

Swing Line Bank and an Issuing Bank

 

and

 

BNP PARIBAS, as Syndication Agent

 

and

 

the banks party hereto

 

June 19, 2014

	 	 

 

    	 

    	 

    

 

Table of Contents

 

	 	 	Page
	 	 	 
	Section 1.  Definitions and Accounting Matters	1
	 	 	 
	1.01	Certain Defined Terms	1
	1.02	Accounting Terms and Determinations	24
	(a)	GAAP Consistently Applied	24
	(b)	No Change to Fiscal Year	24
	(c)	Financial Covenants Determined on a Consolidated Basis	25
	(d)	Terms Generally	25
	1.03	Types of Loans	25
	 	 	 
	Section 2.  Commitments, Loans, Notes and Prepayments	25
	 	 	 
	2.01	Loans	25
	(a)	Revolving Loans	25
	(b)	Intentionally omitted	25
	(c)	Swing Line Commitment; Banks’ Participation	26
	(d)	Repayment of Swing Line Loans; Funding of Participations	26
	2.02	Borrowings	27
	2.03	Letters of Credit	27
	(a)	Letter of Credit Request Procedure	27
	(b)	Bank Participation in Letters of Credit	28
	(c)	Drawings on Letters of Credit; Reimbursement	28
	(d)	Borrowing to Fund Reimbursement	28
	(e)	Funding of Bank Participation in Letters of Credit	28
	(f)	Payments Received by the Issuing Banks	28
	(g)	(i)  Letter of Credit Fees	29
	(h)	Letter of Credit Liability Accounting	29
	(i)	Conditions to Issuance	29
	(j)	Default Interest	30
	(k)	Modifications to Letters of Credit	30
	(l)	Company Indemnification	30
	(m)	Obligations Absolute	31
	(n)	Exculpation	31
	(o)	Auto-Renewal Letters of Credit	32
	(p)	Issuance Caps	32
	(q)	Agent Consent	32
	(r)	Successor Issuing Banks	33
	(s)	UCP; ISP	33
	2.04	Intentionally Omitted	33
	2.05	Changes of the Commitment	33
	(a)	Revolving Credit Commitment Termination Date	33
	(b)	Optional Termination	34
	(c)	No Reinstatement	34
	(d)	Increases in Revolving Loan Commitments	34
	2.06	Commitment Fee	35
	2.07	Lending Offices	35
	2.08	Several Obligations; Remedies Independent	35

 

    	i

    	 

    

 

Table of Contents

(continued)

 

	 	 	Page
	 	 	 
	2.09	Evidence of Indebtedness	35
	(a)	Maintenance of Loan Accounts by Banks	35
	(b)	Maintenance of Loan Accounts by the Agent	36
	(c)	Effect of Entries	36
	(d)	Promissory Notes	36
	2.10	Optional Prepayments and Conversions or Continuations of Loans	36
	2.11	Mandatory Prepayments	36
	(a)	Borrowing Base	36
	(b)	Cover for Letter of Credit Liabilities	37
	 	 	 
	Section 3.  Payments of Principal and Interest	37
	 	 	 
	3.01	Repayment of Loans	37
	3.02	Interest	37
	(a)	Revolving Loans	37
	(b)	Swing Line Loans	37
	(c)	Post Default Interest	38
	(d)	Payment of Interest	38
	 	 	 
	Section 4.  Payments; Computations; Etc	38
	 	 	 
	4.01	Payments	38
	(a)	Payments Generally	38
	(b)	Payments to the Banks	38
	(c)	Payments on a Non-Business Day	38
	4.02	Computations	38
	4.03	Pro Rata Treatment	39
	4.04	Minimum Amounts	39
	4.05	Certain Notices	39
	4.06	Non-Receipt of Funds by the Agent	40
	4.07	Sharing of Payments, etc	41
	(a)	Set off	41
	(b)	Sharing of Payments on Loan Obligations	41
	(c)	Sharing of Benefits of Secured Claim	41
	4.08	Application of Proceeds of Collateral and Subsidiary Guarantee	41
	4.09	Noncash Proceeds	42
	4.10	Return of Proceeds	42
	4.11	Notice of Amount of Obligations	42
	4.12	Defaulting Banks	43
	 	 	 
	Section 5.  Yield Protection, Etc	46
	 	 	 
	5.01	Additional Costs	46
	5.02	Inability to Determine Interest Rate	48
	5.03	Illegality	48
	5.04	Break Funding Compensation	49
	5.05	Intentionally omitted	49
	5.06	Taxes	49

 

    	ii

    	 

    

 

Table of Contents

(continued)

 

	 	 	Page
	 	 	 
	(a)	Payments Free of Taxes	49
	(b)	Payment of Other Taxes by the Company	49
	(c)	Indemnification by the Company	49
	(d)	Indemnification by the Banks	50
	(e)	Evidence of Payments	50
	(f)	Status of Banks	50
	 	 	 
	Section 6.  Conditions Precedent	52
	 	 	 
	6.01	Obligations to Extend Credit	52
	(a)	Executed Counterparts	52
	(b)	Existing Credit Agreement	52
	(c)	Intercreditor Agreement	52
	(d)	Governing Documents	53
	(e)	Good Standing	53
	(f)	Officer’s Certificate	53
	(g)	Borrowing Base Certificate	53
	(h)	Opinion of Counsel to the Company	53
	(i)	Security Documents	53
	(j)	Insurance	54
	(k)	No Material Adverse Effect	54
	(l)	Fees and Expenses	54
	(m)	Subordination Agreement	54
	(n)	Request to Honor Oral and Electronic Instructions	54
	(o)	Other Documents	54
	6.02	Initial and Subsequent Extensions of Credit	54
	 	 	 
	Section 7.  Representations and Warranties	55
	 	 	 
	7.01	Corporate Existence	55
	7.02	Financial Condition	55
	7.03	Litigation	55
	7.04	No Breach	55
	7.05	Action	55
	7.06	Approvals	56
	7.07	Use of Credit	56
	7.08	ERISA	56
	7.09	Taxes	56
	7.10	Indebtedness and Investments	56
	(a)	Indebtedness	56
	(b)	Investments	56
	7.11	True and Complete Disclosure	56
	7.12	Subsidiaries	57
	7.13	Property	57
	7.14	Compliance with Laws and Agreements	57
	7.15	Investment Company Status	57
	7.16	OFAC Money Laundering Representations	57

 

    	iii

    	 

    

 

Table of Contents

(continued)

 

	 	 	Page
	 	 	 
	7.17	Insurance	58
	7.18	Solvency	58
	7.19	Intentionally omitted	59
	7.20	Security Documents	59
	7.21	Environmental Matters	59
	 	 	 
	Section 8.  Covenants of the Company	60
	 	 	 
	8.01	Financial Statements, Etc	60
	(a)	Quarterly Financial Statements	60
	(b)	Annual Financial Statements	60
	(c)	ERISA	60
	(d)	Borrowing Base Certificate	60
	(e)	Collateral Audit	61
	(f)	Shareholder Material	62
	(g)	Notice of Default	62
	(h)	Uncommitted Credit Agreement Documents	62
	(i)	Other Information	62
	8.02	Litigation	62
	8.03	Existence, Etc	62
	(a)	Existence	62
	(b)	Compliance with Laws	63
	(c)	Payment of Obligations	63
	(d)	Maintain Property	63
	(e)	Books and Records	63
	(f)	Inspection	63
	8.04	Insurance	63
	8.05	Prohibition of Fundamental Changes	63
	8.06	Limitation on Liens	64
	8.07	Indebtedness	65
	8.08	Investments	66
	8.09	Leverage Ratio	67
	8.10	Net Working Capital	67
	8.11	No Net Loss	67
	8.12	Lines of Business	67
	8.13	Dividend Payments	67
	8.14	Use of Proceeds	67
	8.15	Subordinated Debt	67
	8.16	Intentionally omitted	68
	8.17	Additional Guarantors; Pledge of Additional Subsidiaries	68
	(a)	Subsidiary Guarantee	68
	(b)	Secured Documents	68
	(c)	Corporate Authorization	68
	8.18	Intentionally omitted	68
	8.19	Amendment to Organizational Documents	69
	8.20	Capital Expenditures	69

 

    	iv

    	 

    

 

Table of Contents

(continued)

 

	 	 	Page
	 	 	 
	8.21	Transactions with Affiliates	69
	8.22	Environmental Laws	69
	8.23	Take or Pay Contracts	69
	8.24	Limitation on Dividend Clause and Negative Pledge Clauses	69
	8.25	Limitation on Sales and Leasebacks	70
	8.26	Accounting Changes	70
	8.27	Borrowing Base	70
	8.28	Deposit Accounts	70
	8.29	Storage Facilities	70
	8.30	Sanctions	70
	 	 	 
	Section 9.  Events of Default	71
	 	 	 
	9.01	Events of Default	71
	(a)	Payment Default	71
	(b)	Cross Default	71
	(c)	Representations and Warranties	71
	(d)	Covenant Defaults	71
	(e)	Failure to Pay Debts	71
	(f)	Voluntary Insolvency Proceedings	72
	(g)	Involuntary Insolvency Proceedings	72
	(h)	Judgment Default	72
	(i)	ERISA Events	72
	(j)	Change of Control	72
	(k)	Security Documents; Basic Documents	73
	(l)	Subordination Provisions	73
	(m)	Quad Avenue Loan Agreement	73
	(n)	Uncommitted Credit Agreement Disclosure	73
	9.02	Cover for Contingent Obligations	73
	 	 	 
	Section 10.  The Agent	74
	 	 	 
	10.01	Appointment, Powers and Immunities	74
	10.02	Reliance by Agent	74
	10.03	Defaults	74
	10.04	Rights as a Bank	75
	10.05	Indemnification	75
	10.06	Non-Reliance on Agent and Other Banks	75
	10.07	Failure to Act	76
	10.08	Resignation or Removal of Agent	76
	10.09	Agency Fee	76
	10.10	Consents under Other Basic Documents	76
	10.11	Pendency of Insolvency	76
	(a)	Filing Claims	77
	(b)	Collection of Funds	77
	10.12	Permitted Release of Collateral	77
	(a)	Automatic Release	77

 

    	v

    	 

    

 

Table of Contents

(continued)

 

	 	 	Page
	 	 	 
	(b)	Written Release	77
	(c)	Other Authorized Release and Subordination	77
	10.13	Powers and Immunities of Fronting Banks	78
	10.14	Perfection by Possession and Control; Deposit Accounts	78
	10.15	Bank Affiliates Rights	79
	10.16	Other Agents	79
	10.17	Intercreditor Agreement	79
	 	 	 
	Section 11.  Miscellaneous	79
	 	 	 
	11.01	Waiver	79
	11.02	Notices	79
	(a)	General Address for Notices	79
	(b)	Electronic Communications	80
	(c)	Electronic Transmission System	80
	(d)	Communications Through the Platform	80
	11.03	Expenses, etc	80
	11.04	Amendments, Etc	81
	11.05	Successors and Assigns	81
	11.06	Assignments and Participations	83
	(a)	Assignments by Banks	83
	(b)	Maintenance of Register by the Agent	84
	(c)	Effectiveness of Assignments	84
	(d)	Participations	84
	(e)	Limitations on Rights of Participants	84
	(f)	Certain Pledges	84
	(g)	No Assignments to the Company or Affiliates	85
	11.07	Survival	85
	11.08	Captions	85
	11.09	Counterparts	85
	11.10	Governing Law; Submission to Jurisdiction	85
	11.11	Waiver of Jury Trial	86
	11.12	Severability	86
	11.13	Independence of Covenants	86
	11.14	PATRIOT ACT PROVISION	86
	11.15	No Fiduciary Relationship	86
	11.16	Construction	86
	11.17	Interest Rate Limitation	86
	(a)	Limitation to Maximum Rate; Recapture	86
	(b)	Cure Provisions	87
	11.18	Waiver of Consequential Damages, etc	87
	11.19	Existing Obligations	87
	11.20	Acknowledgement of Security Interest and Basic Documents; Reaffirmation of Account Control Agreements	87
	11.21	Basic Documents	88
	11.22	Acknowledgments, Amendment and Restatement	88

 

    	vi

    	 

    

 

Table of Contents

(continued)

 

	 	 	 	Page
	 	 	 	 
	EXHIBIT A	–	Form of Note	 
	EXHIBIT B	–	Form of Borrowing Base Certificate	 
	EXHIBIT C	–	Form of Security Agreement	 
	EXHIBIT D	–	Form of Subsidiary Guarantee	 
	EXHIBIT E	–	Form of Assignment and Assumption	 
	EXHIBIT F	–	Form of Increase and New Bank Agreement	 
	EXHIBIT G	–	Form of Compliance Certificate	 
	EXHIBIT H	–	Intentionally omitted	 
	EXHIBIT I	–	Form of Borrowing Request	 
	EXHIBIT J	–	Form of Notice of Prepayment, Conversion and Continuation	 
	EXHIBIT K	–	Subordination Terms	 
	EXHIBIT L	–	Intentionally omitted	 
	EXHIBIT M	—	Form of Intercreditor Agreement	 
	 	 	 	 
	SCHEDULE A	–	Commitments	 
	SCHEDULE I	–	Indebtedness	 
	SCHEDULE II	–	Investments	 
	SCHEDULE III	–	Subsidiaries	 
	SCHEDULE IV	—	Limitations on Dividend Clause and Negative Pledge Clauses	 
	SCHEDULE V	-	Credit Insurance	 

 

    	vii

    	 

    

 

AMENDED AND RESTATED
CREDIT AGREEMENT

 

THIS AMENDED AND RESTATED CREDIT AGREEMENT (this “Agreement”)
is dated as of June 19, 2014, by and among EMPIRE RESOURCES, INC., a corporation duly organized and validly existing under the
laws of the State of Delaware (the “Company”), COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK
NEDERLAND”, NEW YORK BRANCH (“Rabobank”), as agent for the Secured Parties defined below (in such capacity,
together with its successors in such capacity, the “Agent”), BNP Paribas, as syndication agent (in such capacity,
together with its successors in such capacity, the “Syndication Agent”) and each of the lenders that is a signatory
hereto identified under the caption “Banks” on the signature pages hereto (including Rabobank) or that, pursuant to
Section 2.05(d) or 11.06(b) hereof shall become a “Bank” hereunder (individually, a “Bank”,
and collectively, the “Banks”).

 

RECITALS:

 

The Company, certain of the Banks party hereto and the Agent
are parties to the Credit Agreement dated as of April 28, 2011 (as amended, supplemented or otherwise modified from time to time,
the “Existing Credit Agreement”);

 

The Company has requested, and the Banks party hereto have agreed,
to amend and restate the Existing Credit Agreement on, and subject to, the terms and conditions set forth herein.

 

Therefore, for good and valuable consideration, the receipt
and sufficiency of which are hereby acknowledged, the parties agree that the Existing Credit Agreement is amended and restated
in its entirety as set forth above and as follows:

 

Section
1.

Definitions and Accounting Matters.

 

1.01         Certain
Defined Terms. As used herein, the following terms have the following meanings (all terms defined in this Section 1.01
or in other provisions of this Agreement in the singular to have the same meanings when used in the plural and vice versa):

 

“6900 Quad Avenue,
LLC” means 6900 Quad Avenue, LLC, a Delaware limited liability company.

 

“Account Control
Agreement” means each agreement entered into among the Agent, the Company and a securities intermediary, commodity intermediary
or bank, under which the Agent has been granted “control” over a securities, commodities or deposit account, as applicable,
and the right to issue a notice of exclusive control upon the occurrence and during the continuance of an Event of Default, in
form and substance reasonably acceptable to the Agent. For the avoidance of doubt, the agreement set forth in Section 10.14 in
respect of Obligor Accounts shall be an Account Control Agreement.

 

“Act”
has the meaning assigned to such term in Section 11.14 hereof.

 

“Administrative
Questionnaire” means an Administrative Questionnaire in a form supplied by the Agent which will be prepared by the applicable
Bank and delivered to the Agent.

 

“Advance Date”
has the meaning assigned to such term in Section 4.06 hereof.

 

    	 

    	 

    

 

“Affiliate”
means as to any Person, any other Person that directly or indirectly controls, or is under common control with, or is controlled
by, such Person and, if such Person is an individual, any member of the immediate family (including parents, spouse, children and
siblings) of such individual and any trust whose principal beneficiary is such individual or one or more members of such immediate
family and any Person who is controlled by any such member or trust. As used in this definition, “control” (including,
with its correlative meanings, “controlled by” and “under common control with”) means possession,
directly or indirectly, of power to direct or cause the direction of management or policies (whether through ownership of securities
or partnership or other ownership interests, by contract or otherwise), provided that, in any event, any Person that owns
directly or indirectly securities having 5% or more of the voting power for the election of directors or other governing body of
a corporation or 5% or more of the partnership or other ownership interests of any other Person (other than as a limited partner
of such other Person) will be deemed to control such corporation or other Person. Notwithstanding the foregoing, no individual
shall be an Affiliate solely by reason of his or her being a director, officer or employee of the Company.

 

“Agent Parties”
has the meaning assigned to such term in Section 11.02(c) hereof.

 

“Agreement”
has the meaning assigned to such term in the Preamble hereto.

 

“Anti-Terrorism
Laws” has the meaning assigned to such term in Section 7.16 hereof.

 

“Applicable
Lending Office” means, for each Bank and for each Type of Loan, the “Lending Office” of such Bank (or of
an affiliate of such Bank) designated from time to time by such Bank for such Type of Loan as the office by which its Loans of
such Type are to be made and maintained.

 

“Applicable
Margin” means (i) eighty-five hundredths of one percent (0.85%) as it relates to the Base Rate, (ii) two and
thirty-five hundredths of one percent (2.35%) as it relates to the Eurodollar Rate and (iii) with respect to Swing Line Loans,
two and thirty-five hundredths of one percent (2.35%) or such other percentage agreed to by the Company and the Swing Line Bank
from time to time.

 

“Approved Fund”
means (a) a CLO (as defined below) and (b) with respect to any Bank that is a fund which invests in whole or in material part in
commercial bank loans and similar extensions of credit and is administered or managed by the same investment adviser as such Bank
or by an Affiliate of such investment adviser. As used herein, the term “CLO” means any entity (whether a corporation,
partnership, or trust), other than an entity owned and operated for the primary benefit of a natural person or relative(s) thereof,
that is engaged in making, purchasing, holding or otherwise investing in whole or in material part in commercial bank loans and
similar extensions of credit in the ordinary course of its business and is administered or managed by a Bank or an Affiliate of
a Bank.

 

“Assignment
and Assumption” means an Assignment and Assumption entered into by a Bank and an assignee (with the consent of any party
whose consent is required by Section 11.05) and accepted by the Agent, substantially in the form of Exhibit E or any other form
approved by the Agent and the Company.

 

“Assignment
of Claims Act” means the Federal Assignment of Claims Act of 1940, as amended from time to time (31 U.S.C. §3723
et seq.), and any similar state or local laws, as the same now exist or may from time to time hereafter be amended, modified, recodified
or supplemented, together with all rules, regulations or interpretations related thereto.

 

“Australia”
means the Commonwealth of Australia.

 

    	2

    	 

    

 

“Australian
Receivables” means, as at any date, the aggregate amount of all Receivables at such date payable to the Company that
would constitute Tier I Eligible Receivables but for the fact that the principal place of business of the relevant account
debtor is in Australia and/or such Receivables are payable in lawful money of Australia, provided that in no event shall the aggregate
amount of the Australian Receivables included in the Borrowing Base (after giving effect to the applicable advance rate) at any
time exceed an amount equal to 10% of the Borrowing Base.

 

“Auto-Renewal
Letter of Credit” has the meaning assigned to such term in Section 2.03(o) hereof.

 

“Bank”
has the meaning set forth in the introductory paragraph to this Agreement. Unless the context otherwise requires, the term “Bank”
includes each Fronting Bank.

 

“Bankruptcy
Code” means the Federal Bankruptcy Code of 1978, as amended from time to time.

 

“Base Rate”
means for any day, a rate per annum equal to the greatest of (a) the rate of interest published in The Wall Street Journal
as the “prime rate” for such day and if The Wall Street Journal does not publish such rate on such day then
such rate as most recently published prior to such day, (b) the Federal Funds Rate in effect on such day plus 1/2 of 1% and
(c) the Eurodollar Rate that would be applicable in respect of a proposed Eurodollar Loan made two days after such date with
an Interest Period of one month, plus 1.00%. Each change in any interest rate provided for herein based upon the Base Rate resulting
from a change in the Base Rate shall take effect at the time of such change in the Base Rate.

 

“Base Rate Loans”
means Loans that bear interest at rates based upon the Base Rate.

 

“Basel III”
means all regulations, requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel
Committee on Banking Supervision (or any successor or similar authority) or any United States or foreign regulatory authorities,
in each case pursuant to “Basel III”, as amended from time to time.

 

“Basic Documents”
means, collectively, this Agreement, the Notes, the Letter of Credit Documents, the Security Documents and all other documentation
now or hereafter executed and/or delivered pursuant to the express terms of any of the foregoing.

 

“Borrowing Base”
means, as at any date, the sum of (a) minus (b) minus (c) calculated without duplication as of such date where:

 

(a)          equals
the sum of:

 

(i)          if
and to the extent requested by the Company, 85% of Eligible Net Liquidating Value of Brokerage Accounts; plus

 

(ii)         90%
of the aggregate amount of Tier I Eligible Receivable; plus

 

(iii)        80%
of the aggregate amount of Tier II Eligible Receivables; plus

 

(iv)        70%
of the aggregate amount of Australian Receivables; plus

 

    	3

    	 

    

 

(v)         80%
of the aggregate amount of Eligible Inventory Ordered Under L/C; plus

 

(vi)        80%
of the aggregate amount of Eligible Inventory; plus

 

(vii)       65%
of the aggregate amount of Eligible Unsold Inventory; plus

 

(viii)      100%
of the aggregate amount of Pledged Cash, and

 

(b)          equals
100% of the aggregate amount of reserves established at any time and from time to time on or after the Closing Date by the Required
Banks, which reserves are determined by the Required Banks to be necessary to protect the Banks’ interests, such determination
to be made in the Required Banks’ judgment, in good faith and based on information which, in its judgment, supports such
determination. Reserves established under this clause (b) may include, without limitation, reserves for: (i) past due rent
at any location leased or owned by the Company at which Inventory is located unless a landlord and/or mortgagee lien waiver or
subordination has been obtained, (ii) shipping costs with respect to any Inventory held by a third party shipping company
and (iii) past due warehouse and other storage charges with respect to any Inventory held at third party warehouses. Any establishment,
reduction or elimination of reserves under this clause (b) shall be effective on the date the Company receives Agent’s
written notice of the amount thereof, provided that the Agent shall deliver notice to the Company of any such establishment, reduction
or elimination of reserves under this clause (b) promptly after the Required Banks make a determination in writing (which shall
have been delivered to the Agent) thereof, and

 

(c)          100%
of the amount of Indebtedness secured by Permitted Borrowing Base Liens, which is past due (after giving effect to any grace period)
and owing.

 

The Borrowing Base shall be determined
at any time based on the Borrowing Base Certificate or Interim Borrowing Base Certificate, as applicable, then most recently delivered
or, if acceptable to the Agent, as otherwise certified by the Company to the Agent and the Banks, as reduced or increased after
giving effect to any reallocation pursuant to Section 2.3 of the Intercreditor Agreement. Receivables denominated in a currency
other than Dollars shall be reported in the Borrowing Base based on the U.S. Dollar Equivalent thereof determined as of the date
of the Borrowing Base calculation.

 

“Borrowing Base
Certificate” means a certificate of the chief financial officer or other authorized officer with responsibility for financial
matters of the Company, substantially in the form of Exhibit B hereto and appropriately completed.

 

“Borrowing Request”
has the meaning assigned to such term in Section 2.02 hereof.

 

“Business Day”
means (a) any day on which commercial banks are not authorized or required to close in New York City and (b) if such day relates
to a borrowing of a payment or prepayment of principal of or interest on a Conversion of or into, or an Interest Period for, a
Eurodollar Loan or a notice by the Company with respect to any such borrowing, payment, prepayment, Conversion or Interest Period,
or the determination of the Eurodollar Rate, any day on which dealings in Dollar deposits are carried out in the London interbank
market.

 

“Capital Expenditures”
means, for any period with respect to any Person, all expenditures made by such Person during such period that, in accordance with
GAAP, should be classified as a capital expenditure including, without limitation, the aggregate amount of Capital Lease Obligations
incurred during such period, provided that Capital Expenditures shall not include any amount of insurance proceeds that such Person
reinvests in the business of such Person, including investments in replacement assets.

 

    	4

    	 

    

 

“Capital Lease
Obligations” means, for any Person, all obligations of such Person to pay rent or other amounts under a lease of (or
other agreement conveying the right to use) Property to the extent such obligations are required to be classified and accounted
for as a capital lease on a balance sheet of such Person under GAAP, and, for purposes of this Agreement, the amount of such obligations
shall be the capitalized amount thereof, determined in accordance with GAAP.

 

“Capital Securities”
means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation,
all membership interests in a limited liability company, all partnership interests in a limited partnership, or any and all similar
ownership interests in a Person (other than a corporation, limited liability company or limited partnership) and any and all warrants,
rights or options to purchase any of the foregoing.

 

“Cash Collateral”
means cash in Dollars that has been transferred to the Collateral Account to secure repayment of the Obligations.

 

“Cash Collateralize”
means to pledge and deposit with or deliver to the Agent, for the benefit of the Agent and the Banks, Cash Collateral pursuant
to documentation in form and substance reasonably satisfactory to the Agent.

 

“Closing Date”
means the date on which this Agreement becomes effective pursuant to satisfaction or waiver (pursuant to Section 11.04 hereof)
of the conditions precedent set forth in Section 6.01.

 

“Code”
means the Internal Revenue Code of 1986, as amended from time to time.

 

“Collateral”
means the property over which a Lien has been granted to the Agent pursuant to the Security Documents.

 

“Collateral
Account” means a segregated collateral account or accounts maintained by the Agent on behalf of the Secured Parties,
which shall be under the sole dominion and control of, and a first priority perfected lien of (subject to the terms of the Intercreditor
Agreement), the Agent.

 

“Commitment”
means, as the context may require, the Revolving Loan Commitment or the Swing Line Commitment.

 

“Commitment
Period” means the period from the Closing Date to but not including the Revolving Credit Commitment Termination Date,
or such earlier date on which the Commitments shall terminate as provided herein.

 

“Commodity Exchange
Act” means the Commodity Exchange Act (7.U.S.C. § 1 et seq.), as amended from time to time, and any successor statute.

 

“Communications”
has the meaning assigned to such term in Section 11.02(a) hereof.

 

“Company”
has the meaning assigned to such term in the preamble hereof.

 

“Compliance
Certificate” has the meaning assigned to such term in the last sentence of Section 8.01 hereof.

 

    	5

    	 

    

 

“Consolidated
Current Assets” means, at any time with respect to any Person, all assets of such Person and its Subsidiaries that, in
accordance with GAAP, could be classified as current assets on a consolidated balance sheet of such Person and its Subsidiaries
(other than investments in and receivables and other obligations from Subsidiaries, other Affiliates, officers, employees or directors
of such Person).

 

“Consolidated
Current Liabilities” means, at any time with respect to any Person, all liabilities of such Person and its Subsidiaries
that, in accordance with GAAP, could be classified as current liabilities on a consolidated balance sheet of such Person and its
Subsidiaries.

 

“Consolidated
Net Income” means, for any period, the net earnings (or loss) after taxes of the Company and its Subsidiaries on a consolidated
basis for such period taken as a single accounting period determined in conformity with GAAP.

 

“Continue”,
“Continuation” and “Continued” shall refer to the continuation pursuant to Section 2.10
hereof of a Eurodollar Loan from one Interest Period to the next Interest Period.

 

“Contract Rate”
has the meaning assigned to such term in Section 11.17(a) hereof.

 

“Convert”,
“Conversion” and “Converted” shall refer to a conversion pursuant to Section 2.10 hereof
of one Type of Loans into another Type of Loans, which may be accompanied by the transfer by a Bank (at its sole discretion) of
a Loan from one Applicable Lending Office to another.

 

“Convey”
means to convey, sell, lease, assign, transfer or otherwise dispose of Property. The terms “Conveyance” and “Conveyed”
shall have a correlative meaning.

 

“Credit Exposure”
means, at any time, the aggregate principal amount of all Loans and Letter of Credit Liabilities outstanding at such time. The
Credit Exposure of any Bank at any time shall be the sum of such Bank’s Revolving Loans and its Fronting Exposure at such
time.

 

“Credit Insured
Receivable” means the portion of any Receivable which is insured under a credit insurance policy (a) set forth on Schedule
V hereto, including any extensions or renewals thereof, or (b) that is reasonably acceptable to the Required Banks (under which
(in the case of clauses (a) and (b)) in the event of non-payment by the applicable account debtor, the credit insurer would be
obligated to pay the unpaid Receivable up to the limits set forth in such policy subject only to deductibles, co-insurance and
the applicable waiting periods under such policy and no other defenses, set-offs or deductions) issued by a credit insurer that
is reasonably acceptable to the Required Banks, and as to which the Agent is named as loss payee.

 

“Default”
means an Event of Default or any event or circumstance that solely with the giving of notice or lapse of time or both would become
an Event of Default.

 

    	6

    	 

    

 

“Defaulting
Bank” means: (a) a Bank that has defaulted on its obligation to fund Loans hereunder or make any other payment required
hereby for two (2) or more Business Days unless such Bank notifies the Agent and the Company in writing that such failure is the
result of such Bank’s determination that one or more conditions precedent to funding (each of which conditions precedent,
together with any applicable Default or Event of Default, shall be specifically identified in such writing) has not been satisfied;
(b) a Bank that has had an involuntary proceeding commenced or an involuntary petition filed seeking (i) liquidation, reorganization
or other relief in respect of such Bank or its parent or its or its parent’s debts, or of a substantial part of its or its
parent’s assets, under any Federal, state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter
in effect or (ii) the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official for such Bank
or its parent or for a substantial part of its or its parent’s assets; (c) a Bank that shall have or whose parent shall have
(i) voluntarily commenced any proceeding or filed any petition seeking liquidation, reorganization or other relief under any Federal,
state or foreign bankruptcy, insolvency, receivership or similar Law now or hereafter in effect, (ii) consented to the institution
of, or fail to contest in a timely and appropriate manner, any proceeding or petition described in clause (b) of this definition,
(iii) applied for or consented to the appointment of a receiver, trustee, custodian, sequestrator, conservator or similar official
for it or a substantial part of its assets, (iv) filed an answer admitting the material allegations of a petition filed against
it in any such proceeding, (v) made a general assignment for the benefit of creditors or (vi) taken any action for the purpose
of effecting any of the foregoing; (d) a Bank that has, for two (2) or more Business Days, failed to confirm in writing to the
Agent, in response to a written request of the Agent or the Company, that it will comply with its funding obligations under this
Agreement unless such Bank notifies the Agent and the Company in writing that such failure is the result of such Bank’s determination
that one or more conditions precedent to funding (each of which conditions precedent, together with any applicable Default or Event
of Default, shall be specifically identified in such writing) has not been satisfied; or (e) has notified the Agent or the Company,
or has made a public statement to the effect, that it does not intend to comply with its funding obligations under this Agreement,
or has defaulted on its obligation to fund generally under any other loan agreement, credit agreement or other financing agreement
in which it commits to extend credit (unless such writing or public statement relates to such Bank’s obligation to fund a
Loan hereunder and states that such position is based on such Bank’s determination that a condition precedent to funding
(which condition precedent, together with any applicable Default or Event of Default, shall be specifically identified in such
writing or public statement) cannot be satisfied); provided that a Bank shall not be a Defaulting Bank solely by virtue
of the ownership or acquisition of any equity interest in such Bank or any direct or indirect parent company thereof by a Governmental
Authority so long as such ownership interest does not result in or provide such Bank with immunity from the jurisdiction of courts
within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Bank (or such
Governmental Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Bank.

 

“Defaulting
Bank Period” means any period during which a Bank shall be a Defaulting Bank.

 

“Deposit Obligations”
means all obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to any Bank or any Affiliate
of any Bank arising pursuant to any deposit, lock box, automated clearing house or cash management arrangements entered into by
any Bank or any Affiliate of any Bank with the Company or any Subsidiary, whether now existing or hereafter arising, whether direct,
indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, including the
obligation, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to repay any credit extended in
connection with such arrangements, interest thereon, and all reasonable fees, costs, and expenses (including reasonable attorneys’
fees and expenses) provided for in the documentation executed in connection therewith. The term “Deposit Obligations”
includes any and all post-petition interest and expenses (including attorneys’ fees) whether or not allowed under any bankruptcy,
insolvency, or other similar Law.

 

“Dividend Payment”
means dividends (in cash, Property or obligations) on, or other payments or distributions on account of, or the setting apart of
money for a sinking or other analogous fund for, or the purchase, redemption, retirement or other acquisition of, any Capital Securities
of the Company or any of its Subsidiaries, but excluding dividends payable solely in shares of common stock of the Company.

 

    	7

    	 

    

 

“Dodd-Frank
Act” means the Dodd-Frank Wall Street Reform and Consumer Protection Act, Public Law 111-203, as amended from time to
time, and all rules, regulations, requests, guidelines or directives in connection therewith).

 

“Dollars”
and “$” means lawful money of the United States of America.

 

“Domestic Subsidiary”
has the meaning assigned to such term in Section 8.17.

 

“Eligible Inventory”
means, as at any date, the aggregate value of all Inventory (valued at the lower of cost (as determined using the specific identification
method) or market value in accordance with GAAP) which satisfies each of the following requirements:

 

(a)          such
Inventory is owned by the Company as at such date, free and clear of all Liens, except for Permitted Borrowing Base Liens and Liens
permitted under Section 8.06(j) hereof,

 

(b)          such
Inventory (i) in storage in the United States on the property of the Borrower, (ii) on an ocean-going vessel bound for the
United States of America, Canada, Latin America or other jurisdiction acceptable to the Agent, evidenced by either (x) non-negotiable
bills of lading the stated consignee of which is the Company or the Agent or (y) 3/3 on board negotiable bills of lading that have
been issued and duly negotiated to the Agent, or to order and blank endorsed and in the possession of the Agent, (iii) held
at a third party warehouse located in the United States (reasonably acceptable to the Agent, and is evidenced by documents of title,
whether negotiable or non-negotiable, and any such negotiable document of title shall have been issued and duly negotiated to the
Company or the Agent or to order, blank endorsed, and in the possession of the Company or the Agent, and any such non-negotiable
document of title shall have been issued in the name of and delivered to the Company or the Agent, (iv) held at a location
in the United States that is controlled by a third party (reasonably acceptable to the Agent) engaged in the business of storing
goods of others for hire (of the same type as Inventory) that does not issue either negotiable or non-negotiable documents of title
as long as the goods stored by such third party on behalf of the Company are readily identifiable to the Company in a manner reasonably
acceptable to the Agent; or (v) in transit in the United States (under the control of the Company) to or from a warehouse
or other storage facility controlled by the Company or of the type described in clause (iii) or (iv) of this clause (b),

 

(c)          such
Inventory is subject to a perfected first priority Lien in favor of the Agent, subject to no other Liens other than (x) Permitted
Borrowing Base Liens and (y) the existence of Liens (subordinate to the Agent’s Liens) permitted under Section 8.06(j) hereof,

 

(d)          such
Inventory meets all standards imposed by any Governmental Authority or agency, department or division thereof having regulatory
authority over such Inventory, its use or sale,

 

(e)          in
respect of such Inventory either (i) (A) one or more customers of the Company has contracted to purchase such Inventory at a predetermined
fixed price under sales contracts entered into by the Company in the ordinary course of business and (B) upon such delivery an
Eligible Receivable will arise or (ii) such Inventory is hedged by futures contracts (in a manner acceptable to the Required Banks)
in a futures account maintained with a broker acceptable to the Agent, which is subject to the Agent’s first priority perfected
Lien (subject only to customary setoff rights of the applicable broker) and an Account Control Agreement,

 

(f)     
     such Inventory is insured as to casualty loss by an insurance company acceptable to the
Required Banks pursuant to an insurance policy acceptable to the Required Banks on which the Agent has been named additional
insured and loss payee,

 

    	8

    	 

    

 

(g)          such
Inventory is not damaged, obsolete, slow moving or not currently saleable in the normal course of the Company’s operations,

 

(h)          such
Inventory is not Inventory that the Company or the Company’s customer has returned, has attempted to return, is in the process
of returning or intends to return,

 

(i)          such
Inventory has not been shipped or delivered to a customer on consignment, a sale or return basis, or on the basis of any similar
understanding,

 

(j)          such
Inventory was acquired by the Company in the ordinary course of business from a non-Affiliate;

 

(k)         such
Inventory has not given rise to an Eligible Receivable; and

 

(l)          such
Inventory is not Inventory the Agent has otherwise deemed ineligible at any time and from time to time, such determination to be
made in the Agent’s judgment, in good faith and based on information which, in its judgment, supports such determination;

 

provided that (i) in no event shall the aggregate amount of
the Eligible Inventory included in the Borrowing Base at any time exceed an amount equal to 65% of the Borrowing Base and (ii)
if at any time and from time to time the Agent shall determine a warehouse or storage location unacceptable (in its reasonable
discretion) and the Agent shall deliver notice thereof to the Company, (x) any Inventory located at such facility on (or received
by such facility within 14 days after) the date of delivery by the Agent of such notice shall be included as Eligible Inventory
(to the extent such Inventory otherwise qualifies as Eligible Inventory) for not more than 120 days after the date of delivery
of such notice and (y) no Inventory initially received at such facility after the date which is 14 days after the date of delivery
by the Agent of such notice shall be Eligible Inventory until located at a storage facility reasonably acceptable to the Agent.

 

“Eligible Inventory
Ordered Under L/C” means, as at any date, the aggregate purchase price payable for Inventory (not otherwise included
in the Borrowing Base): (a) that the Company has contracted to purchase pursuant to a purchase contract in which the Agent
has a first priority perfected Lien (subject to the terms of the Intercreditor Agreement); (b) the purchase price of which
is supported by a commercial Letter of Credit issued by the applicable Issuing Bank; (c) that is to be delivered to the Company
prior to the Revolving Credit Commitment Termination Date; and (d) that, upon receipt by the Company and payment under the
Letter of Credit, will constitute Eligible Inventory.

 

“Eligible Net
Liquidating Value in Brokerage Accounts” means, as of any date of determination, the aggregate amount of the “net
liquidating value” or “net equity” (however designated) or amount that would be available for withdrawal upon
closing such accounts and liquidation of all open positions at current market values as reported in the most recent account statements
for the relevant account in all commodities accounts of the Company held with commodity intermediaries acceptable to the Agent
in which the Agent has been granted a perfected Lien and which is subject to the execution and delivery of one or more Account
Control Agreements among the Agent, the Company and the applicable commodity intermediaries and that is free and clear of any other
Liens other than customary Liens in favor of the applicable commodity intermediary securing obligations arising in connection with
the operation of such commodity account in the ordinary course.

 

“Eligible Receivables”
means, as at any date, the aggregate amount of all Receivables at such date payable to the Company, other than the following (determined
without duplication):

 

    	9

    	 

    

 

(a)          any
Receivable payable in a currency other than a Permitted Currency;

 

(b)          any
Receivable due from an account debtor whose principal place of business is (i) located in Australia or (ii) otherwise not located
in the United States of America, Canada or Latin America and with respect to this clause (ii) only, which are not: (A) backed
by a bank letter of credit naming the Agent as beneficiary or assigned to the Agent, in the Agent’s possession and acceptable
to the Agent in all respects, such determination to be made in the Agent’s judgment and in good faith or (B) covered by a
foreign receivables insurance policy acceptable to the Agent (on which the Agent shall have been named loss-payee), such determination
to be made in the Agent’s judgment and in good faith,

 

(c)          any
Receivable owing from an Affiliate of the Company,

 

(d)          any
Receivable owing from an account debtor that the Required Banks (through the Agent) have notified the Company does not have a satisfactory
credit standing (as determined by the Required Banks, such determination to be made in each of their respective judgments, in good
faith and based on information which, in their respective judgments, supports such determination),

 

(e)          any
Receivable that remains unpaid for more than 60 days after the original due date thereof,

 

(f)      
   all Receivables of any account debtor if more than 50% of the aggregate amount of the Receivables
owing to the Company from such account debtor shall at the time have remained unpaid and outstanding for more than 60 days
after the original due date thereof,

 

(g)          any
Receivable as to which there is any unresolved dispute with the respective account debtor or which is subject to any offset, counterclaim,
reduction or other claim or defense on the part of the account debtor or to any claim on the part of the account debtor denying
payment liability under such Receivable (including, without limitation, the amount of all liabilities and obligations of the Company
to the account debtor and mark-to-market losses on forward, derivative or other contracts with such account debtor) (but only to
the extent of the amount thereof in dispute or the amount subject to offset, counterclaim, reduction or other claim or defense),

 

(h)          any
Receivable evidenced by an Instrument or Chattel Paper (as such terms are defined in the UCC) not in the possession of the Agent,

 

(i)       
   any Receivable representing an obligation for goods sold on consignment, approval or a sale-or-return basis
or subject to any other repurchase or return arrangement,

 

(j)      
    any Receivable that is payable more than 120 days after the date of the original invoice therefor,
provided that Receivables owing from account debtors organized or located in Brazil which are payable up to 180 days after
the date of the original invoice therefor shall not be excluded from Eligible Receivables under this clause (j) so long as
such Receivables are Credit Insured Receivables, provided, further, that additional Receivables that have a due
date of greater than 120 days after the date of the original invoice therefor in an aggregate amount not to exceed $6,500,000
at any time shall not be excluded from Eligible Receivables under this clause (j) so long as such Receivables are Credit
Insured Receivables,

 

(k)         any
Receivable owed by any Governmental Authority, whether foreign or domestic (provided, however, that there shall be included in
Eligible Receivables that portion of Receivable owed by such Governmental Authority for which the Company has provided evidence
satisfactory to the Agent (including, without limitation, that all necessary actions have been taken under any applicable Assignment
of Claims Act) that (i) the Agent has a security interest in such Receivable and (ii) such Receivable may be enforced by the Agent
against such Governmental Authority),

 

    	10

    	 

    

 

(l)        
  any Receivable that has arisen in a transaction in which the Customer’s obligations have been subcontracted
to a third party or is assured by a performance, completion or other bond,

 

(m)         any
Receivable with respect to which the Agent does not have a first priority, perfected Lien on behalf of the Banks (subject only
to Permitted Borrowing Base Liens) or which is subject to any other Lien (other than Permitted Borrowing Base Liens and Liens (subordinate
to the Agent’s Liens) permitted under Section 8.06(j) hereof),

 

(n)          any
Receivable which shall not be the valid, legally enforceable and binding obligation of the applicable account debtor,

 

(o)          any
Receivable not evidenced by an invoice which shall have been issued to the applicable account debtor,

 

(p)          any
Receivable which does not comply in all material respects with all applicable Laws to which such Receivable and the Company are
subject,

 

(q)          any
Receivable, the account debtor of which is insolvent or a debtor under chapter 11 of the United States Bankruptcy Code (a “Chapter
11 Debtor”) or any other proceeding, whether voluntary or involuntary, under any bankruptcy, reorganization, arrangement,
insolvency, adjustment of debt, dissolution, liquidation or similar law of any jurisdiction, and

 

(r)    
      any Receivable not arising from the purchase of Inventory in an arm’s length bona
fide transaction conducted in the ordinary course of business in compliance with all applicable Laws.

 

“Eligible Unsold
Inventory” means Inventory which is not Eligible Inventory that, but for the failure to satisfy clause (e) of the definition
of “Eligible Inventory”, would qualify as Eligible Inventory, valued at the lower of cost (as determined using the
specific identification method) or market in accordance with GAAP; provided that in no event shall the aggregate amount of such
Eligible Unsold Inventory (including, without limitation, stainless steel) included in the Borrowing Base at any time exceed $6,500,000
(after giving effect to the applicable advance rate) and in no event shall the aggregate amount of Eligible Unsold Inventory included
in the Borrowing Base at any time which is stainless steel exceed $5,000,000 (after giving effect to the applicable advance rate),
plus

 

“Environmental
Laws” means any and all legally binding Laws concerning the environment or the protection of health and safety with respect
to exposure to contamination or pollution in the environment which are in existence now or in the future and are binding at any
time on the Company or any of its Subsidiaries in the relevant jurisdiction in which the Company or any Subsidiary has been or
is operating (including by the export of its products or its waste to that jurisdiction).

 

“Environmental
Permits” means any permit, license, consent, approval, registration and other authorization required under any Environmental
Law for the operation of the business of the Company or any of its Subsidiaries conducted on or from the properties owned or operated
by the Company or such Subsidiary.

 

    	11

    	 

    

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate”
means any trade or business that is a member of any group of organizations (i) described in Section 414(b) or (c) of the Code
of which the Company is a member and (ii) solely for purposes of potential liability under Section 302 of ERISA and Section 412(c)
of the Code and the lien created under Section 303(k) of ERISA and Section 430(k) of the Code, described in Section 414(m)
or (o) of the Code of which the Company is a member.

 

“Eurodollar
Base Rate” means, with respect to any Eurodollar Loan for any Interest Period therefor, the rate of interest per annum
equal to the London interbank offered rate as administered by the ICE Benchmark Administration (or any other Person that takes
over the administration of such rate) for deposits in Dollars with a term equivalent to such Interest Period as displayed on the
Reuters screen page that displays such rate (currently page LIBOR01) (or, in the event such rate does not appear on a Reuters page
or screen, on the appropriate page of such other information service that publishes such rate as shall be selected by the Agent
from time to time in its reasonable discretion) as of 11:00 a.m., London time, two (2) Business Days prior to the commencement
of such Interest Period (but in respect of the Eurodollar Rate as that term is used in the definition of the term “Base Rate”,
as of 11:00 a.m., London time, on the day of determination thereof or if such day is not a Business Day on the immediately preceding
Business Day (the rate determined pursuant to this sentence, herein the “Page Rate”); provided that in the event that
the Page Rate is not available at such time for any reason, the “Eurodollar Base Rate” for the purposes of this definition
shall instead be the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) offered to Rabobank or one of its
Affiliates at approximately 11:00 a.m. London time (or as soon thereafter as practicable) two Business Days prior to the first
day of such Interest Period (but in respect of the Eurodollar Rate as that term is used in the definition of the term “Base
Rate”, as of 11:00 a.m., London time, on the day of determination thereof) or if such day is not a Business Day on the immediately
preceding Business Day by leading banks in the London interbank market of Dollar deposits in immediately available funds having
a term comparable to such Interest Period.

 

“Eurodollar
Loans” means Loans that bear interest at rates based on rates referred to in the definition of “Eurodollar Base
Rate” in this Section 1.01.

 

“Eurodollar
Rate” means, for any Eurodollar Loan for any Interest Period therefor, a rate per annum (rounded upwards, if necessary,
to the nearest 1/100 of 1%) determined by the Agent to be equal to the Eurodollar Base Rate for such Loan for such Interest Period
divided by 1 minus the Reserve Requirement (if any) for such Loan for such Interest Period.

 

“Event of Default”
has the meaning assigned to such term in Section 9 hereof.

 

“Excluded Swap
Obligations” means, with respect to any Obligor, any Swap Obligation if, and to the extent that, all or a portion of
the guarantee of such Obligor of, or the grant by such Obligor of a security interest to secure, such Swap Obligation (or any guarantee
thereof) is or becomes illegal under the Commodity Exchange Act or any rule, regulation or order of the Commodity Futures Trading
Commission (or the application or official interpretation of any thereof) by virtue of such Obligor’s failure for any reason
to constitute an “eligible contract participant” as defined in the Commodity Exchange Act and the regulations thereunder
at the time the guarantee of such Obligor or the grant of such security interest becomes effective with respect to such Swap Obligation.
If a Swap Obligation arises under a master agreement governing more than one swap, such exclusion shall apply only to the portion
of such Swap Obligation that is attributable to swaps for which such guarantee or security interest is or becomes illegal under
the Commodity Exchange Act or any rule, regulation or order of the U.S. Commodity Futures Trading Commission or the application
or official interpretation thereof.

 

    	12

    	 

    

 

“Excluded Taxes”
means, with respect to the Agent, any Bank or any other recipient of any payment to be made by or on account of any obligation
of any Obligor hereunder: (a) taxes imposed on or measured by its overall net income (however denominated) by the jurisdiction
(or any political subdivision thereof) under the Laws of which such recipient is organized or in which its principal office is
located or, in the case of any Bank, in which its Applicable Lending Office is located; (b) any branch profits taxes imposed by
the United States of America or any similar tax imposed by any other jurisdiction in which the applicable Obligor is located, (c)
in the case of a Foreign Bank any withholding tax that is imposed on amounts payable to such Foreign Bank at the time such Foreign
Bank becomes a party to this Agreement (or designates a new lending office) or is attributable to such Foreign Bank’s failure
(or inability) to comply with Section 5.06(e), except to the extent that such Foreign Bank’s assignor (if any) was entitled,
at the time of assignment, to receive additional amounts from the Company with respect to such withholding tax pursuant to Section
5.06, (d) any backup withholding Tax that is required by the Code to be withheld from amounts payable to a Bank because of its
failure to comply with Section 5.06 hereof, and (e) any Taxes imposed on any “withholdable payment” as a result
of the failure of a recipient to satisfy the applicable requirements as set forth in FATCA after December 31, 2012.

 

“Executive Order”
has the meaning assigned to such term in Section 7.16 hereof.

 

“Existing Credit
Agreement” has the meaning assigned to such term in the first Recital to this Agreement.

 

“Existing Loan
Documents” has the meaning assigned to such term in Section 11.22 hereof.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as in effect on the date hereof, including any amendments made thereto after the
date of this Agreement, and any current or future regulations or official interpretations thereof.

 

“Federal Funds
Rate” means, for any day, the rate per annum (rounded upwards, if necessary, to the nearest 1/100 of 1%) equal to the
weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal
funds brokers on such day, as published by the Federal Reserve Bank of New York on the Business Day next succeeding such day, provided
that (a) if the day for which such rate is to be determined is not a Business Day, the Federal Funds Rate for such day shall
be such rate on such transactions on the next preceding Business Day as so published on the next succeeding Business Day and (b) if
such rate is not so published for any Business Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of the
quotations for such day for such transactions received by Rabobank from three Federal funds brokers of recognized standing selected
by it.

 

“Foreign Bank”
means any Bank that is not a “United States person”, as defined under Section 7701(a)(30) of the Code.

 

“Fronting Banks”
means the Swing Line Bank and the Issuing Banks.

 

“Fronting Exposure”
means, at any time, the aggregate principal amount of all Swing Line Loans and Letter of Credit Liabilities outstanding at such
time. The Fronting Exposure of any Bank at any time shall be its Revolving Loan Commitment Percentage of the total Fronting Exposure
at such time.

 

    	13

    	 

    

 

“GAAP”
means generally accepted accounting principles in the United States of America.

 

“Governing Documents”
means, with respect to a: (a) corporation, its articles or certificate of incorporation and bylaws, (b) limited partnership, its
certificate of limited partnership and limited partnership agreement, (c) limited liability company, its certificate of formation
and limited liability company or operating agreement and (d) any other Person, the other organizational or governing documents
of such Person and, in each case, any other organizational or governing documents, as applicable.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Guarantee”
means a guarantee, an endorsement, a contingent agreement to purchase or to furnish funds for the payment or maintenance of, or
otherwise to be or become contingently liable under or with respect to, the Indebtedness, other obligations, net worth, working
capital or earnings of any Person, or a guarantee of the payment of dividends or other distributions upon the Capital Securities
of any Person, or an agreement to purchase, sell or lease (as lessee or lessor) Property, products, materials, supplies or services
primarily for the purpose of enabling a debtor to make payment of such debtor’s obligations or an agreement to assure a creditor
against loss, and including causing a bank or other financial institution to issue a letter of credit or other similar instrument
for the benefit of another Person, but excluding endorsements for collection or deposit in the ordinary course of business. The
terms “Guarantee” and “Guaranteed” used as a verb has a correlative meaning.

 

“Guarantors”
means each Subsidiary of the Company that executes and delivers a Subsidiary Guarantee.

 

“Hedging Agreement”
means any interest rate protection agreement, foreign currency exchange agreement, commodity price protection agreement or other
interest or currency exchange rate or commodity price hedging arrangement or any other similar transaction governed by an ISDA
Master Agreement.

 

“Hedging Obligations”
means all net obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to any Bank or an
Affiliate of a Bank (or any Person which was a Bank or an Affiliate of a Bank at the time such Person entered into the applicable
Hedging Agreement), arising pursuant to any Hedging Agreements entered into by such Bank, Affiliate or other Person (while such
other Person was a Bank or an Affiliate thereof) with the Company or any Subsidiary, or any one of them, whether now existing or
hereafter arising, whether direct, indirect, related, unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or
joint and several, including all fees, costs, and expenses (including attorneys’ fees and expenses) provided for in such
Hedging Agreements. The term “Hedging Obligations” includes any and all post-petition interest and expenses (including
attorneys’ fees) whether or not allowed under any bankruptcy, insolvency, or other similar Law.

 

“Imbali Facility”
means Indebtedness of Imbali Metals Bvba consisting of a revolving working capital facility provided by ING Belgium S.A./N.V.,
in a principal amount not to exceed €10,000,000 at any one time outstanding, and any extensions, renewals, refinancing and
replacements of any such facility that do not increase the outstanding principal amount thereof or result in an earlier maturity
date thereof.

 

    	14

    	 

    

 

“Imbali Guarantee”
means a Guarantee by the Company of the Imbali Facility, which Guarantee shall be subordinated to the Obligations pursuant to the
Subordination Agreement.

 

“Increase Amount”
has the meaning assigned to such term in Section 2.05 hereof.

 

“Increase and
New Bank Agreement” means an Increase and New Bank Agreement substantially in the form of Exhibit F hereto.

 

“Indebtedness”
means, for any Person: (a) obligations created, issued or incurred by such Person for borrowed money (whether by loan, the issuance
and sale of debt securities or the sale of Property to another Person subject to an understanding or agreement, contingent or otherwise,
to repurchase such Property from such Person), and any other indebtedness of such Person which is evidenced by a note, bond, debenture
or similar instrument; (b) obligations of such Person to pay the deferred purchase or acquisition price of Property or services,
other than trade accounts payable (other than for borrowed money) arising, and accrued expenses incurred, in the ordinary course
of business so long as such trade accounts payable are payable within 90 days of the date the respective goods are delivered or
the respective services are rendered; (c) Indebtedness of others secured by a Lien on the Property of such Person, whether or not
the respective indebtedness so secured has been assumed by such Person; (d) obligations of such Person in respect of letters of
credit or similar instruments issued or accepted by banks and other financial institutions for account of such Person; (e) Capital
Lease Obligations of such Person; (f) Indebtedness of others Guaranteed by such Person; (g) obligations under Hedging Agreements;
and (h) obligations of such Person to purchase, redeem, retire, defease or otherwise make any payment in respect of preferred Capital
Securities of such Person. The amount of any Indebtedness under clause (c) shall be equal to the lesser of (A) the stated amount
of the relevant obligations and (B) the fair market value of the property subject to the relevant Lien.

 

“Indemnified
Taxes” means Taxes other than Excluded Taxes.

 

“Interest Period”
means, with respect to any Eurodollar Loan, each period commencing on the date such Eurodollar Loan is made or Converted from a
Base Rate Loan or the last day of the next preceding Interest Period for such Loan and ending on the numerically corresponding
day in the first week or first, second or third calendar month thereafter, as the Company may select as provided in Section 4.05
hereof, except that (i) each Interest Period that commences on the last Business Day of a calendar month (or on any day for which
there is no numerically corresponding day in the appropriate subsequent calendar month) shall end on the last Business Day of the
appropriate subsequent calendar month and (ii) no Interest Period shall extend beyond the Revolving Credit Commitment Termination
Date.

 

Notwithstanding the foregoing, each
Interest Period that would otherwise end on a day that is not a Business Day shall end on the next succeeding Business Day (or,
in respect of an Interest Period other than one week, if such next succeeding Business Day falls in the next succeeding calendar
month, on the next preceding Business Day).

 

“Intercreditor
Agreement” means the Intercreditor Agreement dated as of the date hereof, substantially in the form of Exhibit M hereto,
between the Agent and the Uncommitted Facility Agent, as the same shall be amended, supplemented or otherwise modified from time
to time.

 

“Interim Borrowing
Base Certificate” means a report certified by the chief financial officer or other authorized officer of the Company,
substantially in the form of Exhibit B, with appropriate insertions and schedules, showing the Borrowing Base as of the
date set forth therein after giving effect to the credit extensions requested in relation to such Interim Borrowing Base Certificate.

 

    	15

    	 

    

 

“Inventory”
means the Company’s semi-finished aluminum and steel products and aluminum billets and other similar metals products approved
by the Required Banks.

 

“Investment”
means, for any Person: (a) the acquisition (whether for cash, Property, services or securities or otherwise) of capital stock,
bonds, notes, debentures, partnership or other ownership interests or other securities of any other Person or any agreement to
make any such acquisition (including any “short sale” or any sale of any securities at a time when such securities
are not owned by the Person entering into such sale); (b) the making of any deposit with, or advance, loan or other extension
of credit to, any other Person (including the purchase of Property from another Person subject to an understanding or agreement,
contingent or otherwise, to resell such Property to such Person), but excluding any such advance, loan or extension of credit having
a term not exceeding 90 days representing the purchase price of inventory or supplies sold by such Person in the ordinary course
of business; (c) the entering into of any Guarantee of, or other contingent obligation with respect to, Indebtedness or other
liability of any other Person and (without duplication) any amount committed to be advanced, loaned or extended to such Person;
or (d) the entering into of any Hedging Agreement.

 

“Investment
Grade” means, with respect to any Person as of any date of determination, the long term senior unsecured non-credit enhanced
credit rating of such Person is BBB- or higher by S&P or Baa3 or higher by Moody’s.

 

“Issuance Cap”
means, with respect to the obligation of an Issuing Bank to issue any Letter of Credit under this Agreement, the maximum permitted
aggregate outstanding amount of Letter of Credit Liabilities attributable to Letters of Credit issued by such Issuing Bank, as
shall be agreed upon by each Issuing Bank, the Company and the Agent in writing upon any new Issuing Bank becoming an Issuing Bank,
as such agreement may be amended, modified or supplemented from time to time by the parties thereto. As of the Closing Date, Rabobank
has an Issuance Cap in an amount equal to $75,000,000. The Issuance Cap for Rabobank shall be reduced, in its sole discretion,
by all or any part of the amount of the Issuance Cap of each new Issuing Bank, on the date such new Issuing Bank shall become an
Issuing Bank.

 

“Issuing Bank”
means Rabobank in its capacity as the issuer of Letters of Credit hereunder, and its successors in such capacity. The Company may,
in its discretion, arrange for one or more Letters of Credit to be issued by any other Bank, in which case the term Issuing Bank
shall include any such Bank with respect to Letters of Credit issued by such Bank. Each Issuing Bank may, in its discretion,
arrange for one or more Letters of Credit to be issued by Affiliates of the applicable Issuing Bank, in which case the term Issuing
Bank shall include any such Affiliate with respect to Letters of Credit issued by such Affiliate, together with its
successors and assigns in such capacity.

 

“ISP”
means International Standby Practices ISP98, International Chamber of Commerce Publication No. 590, as from time to time amended,
modified and replaced.

 

“Laws”
means, collectively, all international, foreign, Federal, state and local statutes, treaties, rules, guidelines, regulations, ordinances,
codes and administrative or judicial precedents or authorities, including the interpretation or administration thereof by any Governmental
Authority charged with the enforcement, interpretation or administration thereof, and all applicable administrative orders, directed
duties, licenses, authorizations and permits of, and agreements with, any Governmental Authority.

 

“L/C Cap”
has the meaning assigned to such term in Section 2.03 hereof.

 

“Letter of Credit”
has the meaning assigned to such term in Section 2.03 hereof.

 

    	16

    	 

    

 

“Letter of Credit
Documents” means, with respect to any Letter of Credit, collectively, any application therefor and any other agreements,
instruments, guarantees or other documents (whether general in application or applicable only to such Letter of Credit) governing
or providing for (a) the rights and obligations of the parties concerned or at risk with respect to such Letter of Credit
or (b) any collateral security for any of such obligations, each as the same may be amended, supplemented or otherwise modified
and in effect from time to time.

 

“Letter of Credit
Interest” means for each Bank, such Bank’s participation interest (or, in the case of the applicable Issuing Bank,
such Issuing Bank’s retained interest) in the applicable Issuing Bank’s liability under Letters of Credit and such
Bank’s rights and interests in Reimbursement Obligations and fees, interest and other amounts payable in connection with
Letters of Credit and Reimbursement Obligations.

 

“Letter of Credit
Liability” means, without duplication, at any time and in respect of any Letter of Credit, the sum of (a) the undrawn
face amount of such Letter of Credit plus (b) the aggregate unpaid principal amount of all Reimbursement Obligations
of the Company at such time due and payable in respect of all drawings made under such Letter of Credit.

 

“Leverage Ratio”
means, at any time, the ratio of (a) Total Liabilities at such time minus the amount of Subordinated Debt at such time to
(b) Tangible Net Worth of the Company at such time.

 

“Lien”
means, with respect to any Property, any mortgage, lien, pledge, charge, security interest or encumbrance of any kind in respect
of such Property. For purposes of this Agreement and the other Basic Documents, a Person shall be deemed to own subject to a Lien
any Property that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement,
capital lease or other title retention agreement (other than an operating lease) relating to such Property.

 

“Loan Obligations”
means all obligations, indebtedness, and liabilities of the Company or any Subsidiary, or any one of them, to the Agent and the
Banks arising pursuant to any of the Basic Documents, whether now existing or hereafter arising, whether direct, indirect, related,
unrelated, fixed, contingent, liquidated, unliquidated, joint, several, or joint and several, including the obligation of the Company
or any Subsidiary to repay the Loans, the Letter of Credit Liabilities, interest on the Loans and Letter of Credit Liabilities,
and all reasonable fees, costs, and expenses (including reasonable attorneys’ fees and expenses) provided for in the Basic
Documents. The term “Loan Obligations” includes any and all post-petition interest and expenses (including attorneys’
fees) whether or not allowed under any bankruptcy, insolvency, or other similar Law.

 

“Loans”
means, as the context may require, a Revolving Loan or a Swing Line Loan of any Type.

 

“Margin Stock”
means “margin stock” within the meaning of Regulation T or U.

 

“Material Adverse
Effect” means a material adverse effect on (a) the Property, business, operations, financial condition, prospects,
liabilities or capitalization of the Company and its Subsidiaries (on a consolidated basis), (b) the ability of the Company
or any of its Subsidiaries to perform its obligations under any of the Basic Documents to which it is a party, (c) the validity
or enforceability of any of the Basic Documents, (d) the rights and remedies of the Banks and the Agent under any of the Basic
Documents or (e) the timely payment of the principal of or interest on the Loans or the Reimbursement Obligations or other
amounts payable in connection therewith.

 

“Material Indebtedness”
has the meaning assigned to such term in Section 9.01(b) hereof.

 

    	17

    	 

    

 

“Materials of
Environmental Concern” means any gasoline or petroleum (including crude oil or any fraction thereof) or petroleum products
or any hazardous or toxic substances, materials or wastes, defined or regulated as such in or under, or which form the basis of
liability under, any Environmental Law, including, without limitation, asbestos, polychlorinated biphenyls and urea-formaldehyde
insulation, medical waste, radioactive materials and electromagnetic fields.

 

“Maximum Rate”
has the meaning assigned to such term in Section 11.17(a) hereof.

 

“Moody’s”
means Moody’s Investors Service, Inc., or any successor to its rating agency business.

 

“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA to which the Company or any
ERISA Affiliate makes or is obligated to make contributions.

 

“Net Working
Capital” means as of any date of determination with respect to any Person, an amount equal to the excess of (i) Consolidated
Current Assets of such Person and its Subsidiaries over (ii) Consolidated Current Liabilities of such Person and its Subsidiaries
as at such date.

 

“New Bank”
has the meaning assigned to such term in Section 2.05 hereof.

 

“New Closing
Banks” means the undersigned Banks which were not parties to the Existing Credit Agreement.

 

“Non-Renewal
Notice Date” has the meaning assigned to such term in Section 2.03(o) hereof.

 

“Notes”
means the promissory notes in substantially the form of Exhibit A hereto provided for by Section 2.09 hereof and all promissory
notes delivered in substitution or exchange therefor, in each case as the same shall be amended, supplemented or otherwise modified
and in effect from time to time.

 

“Obligations”
means all Loan Obligations, the Hedging Obligations and all Deposit Obligations.

 

“Obligor Accounts”
has the meaning assigned to such term in Section 10.14 hereof.

 

“Obligors”
means, collectively, the Company and the Guarantors.

 

“OFAC”
has the meaning assigned to such term in Section 7.16 hereof.

 

“Other Taxes”
means any and all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies
arising from any payment made hereunder or under any other Basic Document or from the execution, delivery or enforcement of, or
otherwise with respect to, this Agreement or any other Basic Document.

 

“Participant”
has the meaning assigned to such term in Section 11.06(d) hereof.

 

“Payor”
has the meaning assigned to such term in Section 4.06 hereof.

 

“PBGC”
means the Pension Benefit Guaranty Corporation or any entity succeeding to any or all of its functions under ERISA.

 

    	18

    	 

    

 

“Permitted Borrowing
Base Liens” means Liens permitted under clauses (b) and (c) of Section 8.06 hereof.

 

“Permitted Currency”
means Dollars, Canadian dollars, Euros, Australian dollars and New Zealand dollars, provided, that for purposes of clause
(a) of the definition of “Eligible Receivables”, Permitted Currency shall not include Australian dollars.

 

“Permitted Investments”
means: (a) direct obligations of the United States of America, or of any agency thereof, or obligations guaranteed as to principal
and interest by the United States of America, or of any agency thereof, in either case maturing not more than 90 days from the
date of acquisition thereof; (b) certificates of deposit issued by any bank or trust company organized under the Laws of the
United States of America or any state thereof and having capital, surplus and undivided profits of at least $500,000,000, maturing
not more than 90 days from the date of acquisition thereof; (c) commercial paper rated A-1 or better or P-1 by S&P or
Moody’s, respectively, maturing not more than 90 days from the date of acquisition thereof; (d) municipal bonds with a credit
rating acceptable to the Required Banks; (e) loans or advances to employees made in the ordinary course of business in an aggregate
principal amount outstanding at any time not to exceed $100,000; (f) stock, obligations or securities received in settlement of
debts created in the ordinary course of business and owing to an Obligor or in satisfaction of judgments, including pursuant to
any plan of reorganization or similar arrangement upon the bankruptcy or insolvency of any trade creditor or customer; (g) consideration
received in connection with any asset sale or other disposition permitted under this Agreement; (h) any acquisition of assets solely
in exchange for the issuance of Capital Securities of the Company; and (i) all cash held in deposit accounts subject to an Account
Control Agreement.

 

“Person”
means any individual, corporation, company, limited liability company, voluntary association, partnership, joint venture, trust,
unincorporated organization or government (or any agency, instrumentality or political subdivision thereof).

 

“Platform”
has the meaning assigned to such term in Section 11.02(a) hereof.

 

“Plan”
means an employee benefit or other plan established or maintained by the Company or any ERISA Affiliate and that is covered by
Section 412 of the Code or Title IV of ERISA, other than a Multiemployer Plan, or to which the Company or any ERISA Affiliate contributes
or has an obligation to contribute, or in the case of a multiple employer plan described in Section 4064(a) of ERISA, has made
contributions at any time during the preceding five plan years.

 

“Pledged Cash”
means deposit accounts maintained at any bank or trust company organized or licensed under the Laws of the United States of America
or any state thereof and having capital, surplus and undivided profits of at least $500,000,000 which are subject to Account Control
Agreements in favor of the Agent and are otherwise subject to a first priority, perfected security interest in favor of the Agent
and are free and clear of liens of third persons (other than customary netting and setoff rights, bankers’ liens and the
like in favor of such bank or trust company).

 

“Post-Default
Rate” means a rate per annum equal to 2% plus the Base Rate as in effect from time to time plus the Applicable
Margin for Base Rate Loans, provided that, if the amount with respect to which interest at the Post-Default Rate is payable
is principal of a Eurodollar Loan and the due date thereof is a day other than the last day of the Interest Period therefor, the
“Post-Default Rate” for such principal shall be, for the period from and including such due date to but excluding the
last day of such Interest Period, 2% plus the interest rate for such Loan as provided in Section 3.02(a)(ii) hereof
and, thereafter, the rate provided for above in this definition.

 

    	19

    	 

    

 

“Principal Shareholders”
means Nathan S. Kahn and Sandra R. Kahn.

 

“Property”
means any right or interest in or to property of any kind whatsoever, whether real, personal or mixed and whether tangible or intangible.

 

“Quad Avenue
Loan Agreement” means the Loan Agreement dated as of December 27, 2004 between 6900 Quad Avenue, LLC and JPMorgan
Chase Bank, N.A., as the same shall be amended, supplemented or otherwise modified and in effect from time to time.

 

“Quad Avenue
Subsidiary” means 6900 Quad Avenue, LLC, unless such Person owns any property (real or otherwise) other than the approximately
122,000 square foot warehouse located at 6900 Quad Avenue, Baltimore, Maryland.

 

“Quarterly Dates”
means the last Business Day of each March, June, September and December, the first of which shall be the first such day after the
date of this Agreement.

 

“Rabobank”
has the meaning set forth in the introductory paragraph herein.

 

“Receivables”
means, as at any date, the unpaid portion of the obligation, as stated on the respective invoice, of a customer of the Company
in respect of Inventory sold and shipped to such customer, net of any credits, rebates or offsets owed to such customer and also
net of any commissions payable to third parties (and for purposes hereof, a credit or rebate paid by check or draft of the Company
shall be deemed to be outstanding until such check or draft has been debited to the account of the Company) and net of any applicable
taxes including, without limitation, sales, excise and similar taxes.

 

“Register”
has the meaning set forth in Section 11.06(b) hereof.

 

“Regulations
D, T, U and X” means, respectively, Regulations D, T, U and X of the Board of Governors of the Federal Reserve System
(or any successor), as the same may be modified and supplemented and in effect from time to time.

 

“Regulatory
Change” means, with respect to any Bank, any change after the date of this Agreement in Federal, state or foreign Law
or regulations (including Regulation D) or the adoption or making after such date of any interpretation, directive or request applying
to a class of banks including such Bank of or under any Federal, state or foreign Law or regulations (whether or not having the
force of Law and whether or not failure to comply therewith would be unlawful) by any court or governmental or monetary authority
charged with the interpretation or administration thereof. The Dodd-Frank Act, Basel III and all requests, rules, guidelines, and
directives promulgated under any of the foregoing shall be deemed to be a “Regulatory Change “, regardless of the date
enacted or adopted.

 

“Reimbursement
Obligations” means, at any time, the obligations of the Company then outstanding to reimburse amounts paid by the applicable
Issuing Bank in respect of any drawings under a Letter of Credit.

 

“Relevant Properties”
has the meaning assigned to such term in Section 7.12 hereof.

 

“Requested Increase
Effective Date” has the meaning assigned to such term in Section 2.05 hereof.

 

“Required Banks”
means Banks having 51% of the aggregate amount of the Revolving Loan Commitments or, if the Revolving Loan Commitments have terminated,
Banks holding at least 51% of the aggregate amount of the Credit Exposure. If at the time of the calculation of the Required Banks,
one or more Defaulting Banks exists, the Credit Exposure and unused Revolving Loan Commitments of each Defaulting Bank shall be
excluded from both the numerator and denominator of the calculation.

 

    	20

    	 

    

 

“Required Payment”
has the meaning assigned to such term in Section 4.06 hereof.

 

“Requirement
of Law” means, as to any Person, any Law, treaty, rule or regulation or determination of an arbitrator or a court or
other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person
or any of its property is subject.

 

“Reserve Requirement”
means the average maximum rate at which reserves (including any marginal, supplemental or emergency reserves) are required to be
maintained under Regulation D by member banks of the Federal Reserve System in New York City with deposits exceeding one billion
Dollars against “Eurocurrency liabilities” (as such term is used in Regulation D). Without limiting the effect of the
foregoing, the Reserve Requirement shall include any other reserves required to be maintained by such member banks by reason of
any Regulatory Change with respect to (i) any category of liabilities that includes deposits by reference to which the Eurodollar
Base Rate is to be determined as provided in the definition of “Eurodollar Base Rate” in this Section 1.01 or
(ii) any category of extensions of credit or other assets that includes Eurodollar Loans.

 

“Revolving Credit
Commitment Termination Date” means June 19, 2017.

 

“Revolving Loan
Commitment” means, as to each Bank, the obligation of such Bank to make Loans and to acquire a participation in Letters
of Credit in an aggregate principal or face amount at any one time outstanding up to but not exceeding the amount set opposite
such Bank’s name under the caption “Commitment” on Schedule A attached hereto and incorporated herein by reference
(as the same may be reduced or increased from time to time pursuant to Section 2.05 hereof). As of June 19, 2014, the aggregate
amount of the Revolving Loan Commitments is $150,000,000.

 

“Revolving Loan
Commitment Percentage” means, with respect to any Bank and except as set forth in clause (b) below:

 

(a)          the
ratio of (i) the amount of the Revolving Loan Commitment of such Bank to (ii) the aggregate amount of the Revolving Loan
Commitments of all of the Banks; provided that if at the time of the calculation one or more Defaulting Banks exists, the Revolving
Loan Commitment Percentages are subject to reallocation as provided in Section 4.12, and

 

(b)          with
respect to any Bank in respect of any indemnity claim under Section 10.05 arising out of an action or omission of the Agent under
this Agreement, the ratio of (i) the amount of the Revolving Loan Commitment of such Bank to (ii) the aggregate amount
of the Revolving Loan Commitments of all of the Banks.

 

If the Revolving Loan Commitments have
terminated or expired, the Revolving Loan Commitment Percentage shall be determined based upon the Revolving Loan Commitments most
recently in effect, giving effect to any assignments.

 

“Revolving Loans”
means the Loans provided for in Section 2.01 hereof, which may be Base Rate Loans and/or Eurodollar Loans.

 

“S&P”
means Standard and Poor’s Ratings Services, or any successor to its rating agency business.

 

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“Sanctioned
Person” has the meaning assigned to such term in Section 7.16 hereof.

 

“Secured Parties”
means the Agent, the Banks and each Affiliate of a Bank who is owed any portion of the Obligations.

 

“Security Agreement”
means the Amended and Restated Security Agreement among the Company, the Guarantors and the Agent, substantially in the form of
Exhibit C hereto, as the same shall be amended, supplemented or otherwise modified and in effect from time to time.

 

“Security Documents”
means, collectively, the Security Agreement, the Subsidiary Guarantee, the Share Pledge Agreement, all Uniform Commercial Code
financing statements required by this Agreement and the Security Agreement to be filed with respect to the security interests in
personal Property and fixtures created pursuant to the Security Agreement, and each other security agreement or other document
executed and delivered pursuant to the Security Agreement and the Share Pledge Agreement to secure any of the Obligations.

 

“Share Pledge
Agreement” means that certain Share Pledge Agreement dated April 28, 2011 between the Company and Rabobank (in its capacities
as Agent and as Uncommitted Facility Agent) pursuant to which the Company pledges 65% of the Capital Securities issued by Imbali
Metals Bvba, as the same shall be amended, supplemented or otherwise modified and in effect from time to time.

 

“Spot Rate”
means, for any Permitted Currency, the exchange rate published by The Wall Street Journal for the purchase of such Permitted
Currency with Dollars on the date that the foreign exchange computation is made, provided that the Company may obtain such rate
from another agency designated by the Company (and reasonably acceptable to the Agent) if a foreign exchange rate for such Permitted
Currency is not available from The Wall Street Journal at the time of determination.

 

“Subordination
Agreement” means that certain Subordination Agreement among the Company, the Agent and the lenders under the Imbali Facility
(or an agent on their behalf) dated as of April 28, 2011, as the same shall be amended, supplemented or otherwise modified and
in effect from time to time.

 

“Subordinated
Debt” means unsecured Indebtedness of the Company that is: (a) provided to the Company substantially on the terms
set forth on Exhibit K hereto or on such other or different terms as shall be acceptable to the Required Banks in their sole discretion,
(b) subordinated to the Obligations on terms outlined on Exhibit K or on such other or different subordination terms, as shall
be acceptable to the Required Banks in their sole discretion and (c) not guaranteed by any Obligor unless such guarantee is
subordinated to obligations of such Obligor under the Basic Documents on terms similar to those outlined on Exhibit K or on such
other or different subordination terms, as shall be acceptable to the Required Banks in their sole discretion. For the avoidance
of doubt, the Indebtedness of the Company under the Imbali Guarantee shall not constitute Subordinated Debt.

 

“Subsidiary”
means, with respect to any Person, any corporation, partnership or other entity of which at least a majority of the securities
or other ownership interests having by the terms thereof ordinary voting power to elect a majority of the board of directors or
other persons performing similar functions of such corporation, partnership or other entity (irrespective of whether or not at
the time securities or other ownership interests of any other class or classes of such corporation, partnership or other entity
has or might have voting power by reason of the happening of any contingency) is at the time directly or indirectly owned or controlled
by such Person or one or more Subsidiaries of such Person or by such Person and one or more Subsidiaries of such Person.

 

    	22

    	 

    

 

“Subsidiary
Guarantee” means the Amended and Restated Subsidiary Guarantee in favor of the Agent, substantially in the form of Exhibit
D hereto as the same may be amended or otherwise modified from time to time.

 

“Swap Obligations”
means, with respect to any Obligor, any obligation to pay or perform under any agreement, contract or transaction that constitutes
a “swap” within the meaning of section 1a(47) of the Commodity Exchange Act.

 

“Swing Line
Bank” means, subject to the terms of this Agreement, Rabobank.

 

“Swing Line
Commitment” has the meaning assigned to such term in Section 2.01(c) hereof.

 

“Swing Line
Loan” has the meaning assigned to such term in Section 2.01(c) hereof.

 

“Tangible Net
Worth” means, as at any date for any Person, the sum for such Person (determined without duplication in accordance with
GAAP), of the following:

 

(a)          the
amount of common stock; plus

 

(b)          the
amount of surplus and retained earnings (or, in the case of a surplus or retained earnings deficit, minus the amount of
such deficit); plus

 

(c)          accumulated
other comprehensive income; plus

 

(d)          the
amount of any Subordinated Debt; minus

 

(e)          the
sum of the following: (i) the aggregate amount of Investments by such Person, other than (x) Investments permitted under Section
8.08(e) hereof and (y) Permitted Investments plus (ii) to the extent not deducted in the calculation of Tangible Net Worth
under clause (i) above, Investments in and receivables and other obligations from Subsidiaries, other Affiliates, officers, employees
or directors of such Person plus (iii) the cost of treasury shares and the book value of all assets that should be classified
as intangibles (without duplication of deductions in respect of items already deducted in arriving at surplus and retained earnings)
but in any event including goodwill, minority interests, research and development costs, trademarks, trade names, copyrights, patents
and franchises, unamortized debt discount and expense, all reserves and any write-up in the book value of assets resulting from
a revaluation thereof subsequent to December 31, 2013.

 

“Taxes”
means any and all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges
imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

 

“Tier I Eligible
Receivables” means, on any date, all Eligible Receivables that are: (a) owed by account debtors which are Investment
Grade, (b) Credit Insured Receivables, (c) fully supported by a letter for credit issued by a financial institution which
is Investment Grade or any other financial institution acceptable to the Required Banks or (d) otherwise approved by the Required
Banks as “Tier I Eligible Receivables”.

 

    	23

    	 

    

 

“Tier II Eligible
Receivables” means, on any date, all Eligible Receivables that are not Tier I Eligible Receivables (including, without
limitation, any portion of Eligible Receivables which, but for such amount being in excess of the applicable credit insurance limits,
would be Tier I Eligible Receivables), provided, that the aggregate amount of Tier II Eligible Receivables that are not
Credit Insured Receivables, owing from any one account debtor (and its Affiliates) included in the Borrowing Base at any time shall
not exceed $1,500,000 (per account debtor (and its Affiliates)), unless otherwise approved by the Required Banks, provided,
further, that the aggregate amount of Tier II Eligible Receivables included in the Borrowing Base at any time shall not
exceed $6,500,000 (after giving effect to the applicable advance rate), unless otherwise approved by the Required Banks.

 

“Total Liabilities”
means, as at any date, the sum, for the Company (determined without duplication in accordance with GAAP), of the following: (a) all
Indebtedness (including obligations of the Company and its consolidated Subsidiaries in respect of letters of credit or similar
instruments (whether drawn or undrawn) issued or accepted for account of such Person) and (b) all other liabilities of the
Company and its consolidated Subsidiaries that should be classified as liabilities on a balance sheet, including all reserves (other
than general contingency reserves), but excluding all deferred taxes and other deferred items.

 

“Type”
has the meaning assigned to such term in Section 1.03 hereof.

 

“UCC”
means the Uniform Commercial Code as adopted in the State of New York.

 

“UCP”
means the Uniform Customs and Practice for Documentary Credits (2007 Revision), International Chamber of Commerce Publication No.
600, as the same may be amended from time to time.

 

“Uncommitted
Credit Agreement” means the Uncommitted Credit Agreement dated as of the date hereof among the Borrower, the lenders
party thereto and the Uncommitted Facility Agent, as the same may be amended, supplemented or otherwise modified and in effect
from time to time.

 

“Uncommitted
Facility Agent” means Rabobank in its capacity as “Agent” under and as defined in the Uncommitted Credit
Agreement.

 

“U.S. Dollar
Equivalent” means, at any time, (a) as to any amount denominated in Dollars, the amount thereof at such
time and (b) as to any amount denominated in any other Permitted Currency, the equivalent amount in Dollars as determined by the
Company at such time on the basis of the Spot Rate for the purchase of Dollars with such Permitted Currency on the most recent
date of computation thereof.

 

1.02        Accounting
Terms and Determinations.

 

(a)          GAAP
Consistently Applied. All calculations made for the purposes of determining compliance with this Agreement shall (except as
otherwise expressly provided herein) be made by application of GAAP. Except as otherwise expressly provided herein, all terms of
an accounting or financial nature shall be construed in accordance with GAAP, as in effect from time to time; provided that, if
the Company notifies the Agent that the Company requests an amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the operation of such provision, regardless of whether
any such notice is given before or after such change in GAAP or in the application thereof, then such provision shall be interpreted
on the basis of GAAP as in effect and applied immediately before such change shall have become effective until such notice shall
have been withdrawn or such provision amended in accordance herewith.

 

(b)          No
Change to Fiscal Year. To enable the ready and consistent determination of compliance with the covenants set forth in Section 8
hereof, the Company will not change the last day of its fiscal year from December 31 of each year, or the last days of the first
three fiscal quarters in each of its fiscal years from March 31, June 30 and September 30 of each year, respectively.

 

    	24

    	 

    

 

(c)          Financial
Covenants Determined on a Consolidated Basis. Any and all financial information delivered pursuant to Section 8.01(a)
and (b) shall be prepared on a consolidated basis for the Company and its Subsidiaries except as otherwise specifically required
thereby. Any and all calculations made hereunder for purposes of determining compliance with the financial covenants set forth
in Sections 8.09 through 8.11 shall be on a consolidated basis for the Company and its consolidated Subsidiaries.

 

(d)          Terms
Generally. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms.
The words “include”, “includes” and “including” shall be deemed to be followed by the phrase
“without limitation”. The word “will” shall be construed to have the same meaning and effect as the word
“shall”. Unless the context requires otherwise (a) any definition of or reference to any agreement, instrument or other
document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented
or otherwise modified (subject to any restrictions on such amendments, supplements or other modifications set forth therein or
herein); (b) any reference herein to any Person shall be construed to include such Person’s permitted successors and assigns;
(c) the words “herein”, “hereof” and “hereunder”, and words of similar import, shall be construed
to refer to this Agreement in its entirety and not to any particular provision hereof; (d) all references herein to Sections, Exhibits
and Schedules shall be construed to refer to Sections of, and Exhibits and Schedules to, this Agreement; (e) reference herein to
any Law or regulation shall be construed to include any amendment, replacement or other modification thereto; and (f) terms
that are used herein, defined in the UCC and not otherwise defined herein shall have the meanings provided for in the UCC.

 

1.03        Types
of Loans. Loans hereunder are distinguished by “Type”. The “Type” of a Loan refers to whether such
Loan is a Base Rate Loan or a Eurodollar Loan, each of which constitutes a Type.

 

Section
2.

Commitments, Loans, Notes and Prepayments.

 

2.01        Loans.

 

(a)          Revolving
Loans. Each Bank severally agrees, on the terms and conditions of this Agreement, to make loans to the Company in Dollars during
the Commitment Period in an aggregate principal amount at any one time outstanding up to but not exceeding the amount of such Bank’s
Revolving Loan Commitment as in effect from time to time; provided that the aggregate amount of all Credit Exposure at any
one time outstanding shall not exceed the lesser of (x) the aggregate Revolving Loan Commitments as in effect from time to time
and (y) the Borrowing Base. Subject to the terms and conditions of this Agreement, during the Commitment Period the Company may
borrow, repay and reborrow under the Revolving Loan Commitments by means of Base Rate Loans and Eurodollar Loans and may Convert
one Type of Loan into Loans of another Type (as provided in Section 2.10 hereof) or Continue Loans of one Type as Loans of
the same Type (as provided in Section 2.10 hereof), provided that no more than ten separate Interest Periods in respect of
Eurodollar Loans may be outstanding at any one time.

 

(b)          Intentionally
omitted.

 

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(c)          Swing
Line Commitment; Banks’ Participation. Subject to the terms and conditions of this Agreement, the Revolving Loan Commitments
may be utilized, upon the request of the Company to the Swing Line Bank, in addition to the Revolving Loans provided for by clause
(a) hereof, to make swing line loans (the “Swing Line Loans”) to the Company in Dollars during the Commitment
Period in an aggregate principal amount at any one time outstanding up to but not exceeding $10,000,000 (the “Swing Line
Commitment”). Subject to the terms and conditions of this Agreement, during such period the Company may borrow, repay
and reborrow Swing Line Loans, provided that the Swing Line Bank shall not make a Swing Line Loan to refinance an outstanding Swing
Line Loan. The Swing Line Bank shall not be permitted or required to make Swing Line Loans if, after giving effect thereto,
(i) the aggregate outstanding principal amount of all Swing Line Loans would exceed the then existing Swing Line Commitment or
(ii) unless otherwise agreed to by the Swing Line Bank, in its sole discretion, the sum of all Revolving Loans made by the Swing
Line Bank plus the Swing Line Bank’s Revolving Loan Commitment Percentage of the aggregate amount of all Swing Line
Loans and Letter of Credit Liabilities would exceed the Swing Line Bank’s then existing Revolving Loan Commitment; provided
that the aggregate amount of all Credit Exposure at any one time outstanding shall not exceed the lesser of (x) the aggregate Revolving
Loan Commitments as in effect from time to time and (y) the Borrowing Base.

 

(d)          Repayment
of Swing Line Loans; Funding of Participations. If (i) any Swing Line Loan shall be outstanding for more than five consecutive
Business Days, (ii) any Swing Line Loan is or will be outstanding on a date when the Company requests that a Revolving Loan be
made, or (iii) any Default shall occur and be continuing, then each Bank (other than the Swing Line Bank) irrevocably agrees that
it will, at the request of the Swing Line Bank in its sole and absolute discretion, make a Revolving Loan (which shall initially
be funded as a Base Rate Loan) in an amount equal to such Bank’s Revolving Loan Commitment Percentage of the aggregate principal
amount of all such Swing Line Loans then outstanding (such outstanding Swing Line Loans hereinafter referred to as the “Refunded
Swing Line Loans”). On or before 2:00 p.m. New York time on the first Business Day following receipt by each Bank (other
than the Swing Line Bank) of a request to make Revolving Loans as provided in the preceding sentence, each Bank (other than the
Swing Line Bank) shall deposit in an account specified by the Swing Line Bank the amount so requested in same day funds and such
funds shall be applied by the Swing Line Bank to repay the Refunded Swing Line Loans. In connection with the Refunded Swing Line
Loans, the Swing Line Bank shall be deemed to have made Revolving Loans in an amount equal to the Swing Line Bank’s Revolving
Loan Commitment Percentage of the aggregate principal amount of the Refunded Swing Line Loans. Upon the making (or deemed making,
in the case of the Swing Line Bank) of any Revolving Loans pursuant to this paragraph, the amount so funded shall become an outstanding
Revolving Loan and shall no longer be owed as a Swing Line Loan. All interest payable with respect to any Revolving Loans made
(or deemed made, in the case of the Swing Line Bank) pursuant to this paragraph shall be appropriately adjusted to reflect the
period of time during which the Swing Line Bank had outstanding Swing Line Loans in respect of which such Revolving Loans were
made. Each Bank’s (other than the Swing Line Bank’s) obligation to make the Revolving Loans referred to in this paragraph
shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment,
defense or other right which such Bank may have against the Swing Line Bank, any Obligor or any Person for any reason whatsoever;
(ii) the occurrence or continuation of any Default; (iii) any adverse change in the condition (financial or otherwise) of any Obligor;
(iv) the acceleration or maturity of the Loans or the termination of any Commitment after the making of any Swing Line Loan; (v)
any breach of any Basic Document by any Person; or (vi) any other circumstance, happening or event whatsoever, whether or not similar
to any of the foregoing; provided, that if as a result of the occurrence of any Event of Default described in clauses (f)
or (g) of Section 9 with respect to the Company, any Bank shall be prohibited or stayed from making any such Revolving Loan referred
to in this paragraph, the Swing Line Bank shall be deemed to have sold and transferred to each other Bank and each such other Bank
shall be deemed to have irrevocably and unconditionally purchased and received from the Swing Line Bank, without recourse or warranty,
an undivided interest and participation, to the extent of such other Bank’s Revolving Loan Commitment Percentage of the Swing
Line Loan so made and each such Bank shall immediately pay to the Swing Line Bank an amount equal to each Revolving Loan otherwise
required to be made by it pursuant to this Section in payment for such participation in the related Swing Line Loan purchased by
such Bank pursuant to this clause (d).

 

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2.02        Borrowings.
The Company shall give the Agent notice of each borrowing hereunder pursuant to a Borrowing Request substantially in the form of
Exhibit I hereto as provided in Section 4.05 hereof, provided, however, notwithstanding Section 11.02(b)
hereof, an authorized officer of the Company may deliver to the Agent an unsigned Borrowing Request by email to fm.am.SyndicatedLoans@rabobank.com
(or such other email as the Agent may direct in writing) so long as (i) it has been confirmed promptly by Sandra Kahn (or another
authorized officer) by phone and (ii) the Company delivers to the Agent a duly signed copy thereof within five (5) Business Days
of the date such email is delivered to the Agent, provided, that without limiting the Company’s obligations under clause
(ii) above, if the signed copy shall not be received, each of the Agent and the Banks shall be authorized to rely on the unsigned
request (with the same force and effect as a signed request). The Agent shall promptly notify the Banks of the receipt of each
Borrowing Request (including, without limitation, any unsigned request confirmed by phone) received hereunder on the date of its
effective receipt of the same (including, receipt by email and phone confirmed). On the date specified for each borrowing hereunder
of Revolving Loans, each Bank shall, subject to the terms and conditions of this Agreement, make available its Revolving Loan Commitment
Percentage of the amount of such borrowing to the Agent by depositing the same, in immediately available funds, at an account maintained
by the Agent not later than 2:00 p.m., New York time. The amount so received by the Agent shall, subject to the terms and conditions
of this Agreement, be made available to the Company, by depositing the same, in immediately available funds, in an account of the
Company designated by the Company.

 

2.03        Letters
of Credit. Subject to the terms and conditions of this Agreement, the Revolving Loan Commitments may be utilized, upon the
request of the Company, in addition to the Revolving Loans and Swing Line Loans provided for by Section 2.01 hereof, by the
issuance by the Issuing Banks of letters of credit (collectively, “Letters of Credit”) for account of the Company,
provided that in no event shall: (i) the aggregate amount of all Credit Exposure exceed the lesser of (x) the Borrowing
Base plus, with respect to any commercial Letter of Credit to be issued to secure the purchase price of Inventory, 80% of the cost
of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit is issued, and (y) the aggregate
amount of the Revolving Loan Commitments as in effect from time to time, (ii) the outstanding aggregate amount of all Letter
of Credit Liabilities exceed $75,000,000 (the “L/C Cap”), (iii) the outstanding aggregate amount of all
Letter of Credit Liabilities arising out of standby Letters of Credit exceed $6,500,000, and (iv) the expiration date of any Letter
of Credit extend beyond the Revolving Credit Commitment Termination Date, provided, that Letters of Credit with respect
to which the Letter of Credit Liabilities in respect thereof are not in excess of $50,000,000 may be issued that expire after the
Revolving Credit Commitment Termination Date then in effect, but before the date that is ninety (90) days thereafter.

 

(a)          Letter
of Credit Request Procedure. The Company shall give the Agent at least two Business Days’ irrevocable prior notice (effective
upon receipt) specifying the Business Day (which shall be no later than 30 days preceding the Revolving Credit Commitment Termination
Date) each Letter of Credit is to be issued, the name of the applicable Issuing Bank, and the account party or parties therefor
and describing in reasonable detail the proposed terms of such Letter of Credit (including the beneficiary thereof) and the nature
of the transactions or obligations proposed to be supported thereby (including whether such Letter of Credit is to be a commercial
Letter of Credit or a standby Letter of Credit). Upon receipt by the applicable Issuing Bank of confirmation from the Agent in
writing that the requested Letter of Credit is permitted in accordance with the terms hereof, such Issuing Bank
shall, on the requested date, issue a Letter Credit for the account of the Company in accordance with this Agreement.

 

    	27

    	 

    

 

(b)          Bank
Participation in Letters of Credit. Upon the issuance of each Letter of Credit, the applicable Issuing Bank shall be deemed
to have sold and transferred to each other Bank and each such other Bank shall be deemed irrevocably and unconditionally to have
purchased and received from the applicable Issuing Bank, without recourse or warranty, an undivided interest and participation,
to the extent of such other Bank’s Revolving Loan Commitment Percentage of the Letter of Credit Liabilities with respect
to the Letter of Credit so issued.

 

(c)          Drawings
on Letters of Credit; Reimbursement. Upon receipt from the beneficiary of any Letter of Credit of any demand for payment under
such Letter of Credit, the applicable Issuing Bank shall promptly notify the Company (through the Agent) of the amount to be paid
by such Issuing Bank as a result of such demand and the date on which payment is to be made by such Issuing Bank to such beneficiary
in respect of such demand. Notwithstanding the identity of the account party of any Letter of Credit, the Company hereby unconditionally
agrees to pay and reimburse (including, for the avoidance of doubt, with proceeds of a Loan as set forth in clause (d) below) the
Agent for the account of the applicable Issuing Bank for the amount of each demand for payment under such Letter of Credit made
in accordance with the terms thereof at or prior to the date on which payment is to be made by such Issuing Bank to the beneficiary
thereunder in accordance with the terms thereof, without presentment, demand, protest or other formalities of any kind.

 

(d)          Borrowing
to Fund Reimbursement. Forthwith upon its receipt of a notice referred to in clause (c) of this Section 2.03,
the Company shall advise the Agent whether or not the Company intends to borrow hereunder to finance its obligation to reimburse
the applicable Issuing Bank for the amount of the related demand for payment and, if it does, submit a notice of such borrowing
as provided in Section 4.05 hereof. In the event that the Company fails to reimburse the applicable Issuing Bank for a payment
under a Letter of Credit by the date of such payment, the Agent shall give each Bank prompt notice of the amount of the demand
for payment, specifying such Bank’s Revolving Commitment Percentage of the amount of the related demand for payment.

 

(e)          Funding
of Bank Participation in Letters of Credit. Each Bank (other than the applicable Issuing Bank) shall pay to the Agent for account
of the applicable Issuing Bank in Dollars and in immediately available funds, the amount of such Bank’s Revolving Commitment
Percentage of any payment under a Letter of Credit upon notice by such Issuing Bank (through the Agent) to such Bank requesting
such payment and specifying such amount. Each such Bank’s obligation to make such payment to the Agent for account of the
applicable Issuing Bank under this clause (e), and such Issuing Bank’s right to receive the same, shall be absolute
and unconditional and shall not be affected by any circumstance whatsoever, including the failure of any other Bank to make its
payment under this clause (e), the financial condition of the Company (or any other account party), the existence of any Default
or the termination of any Commitment. Each such payment to the applicable Issuing Bank shall be made without any offset, abatement,
withholding or reduction whatsoever.

 

(f)     
     Payments Received by the Issuing Banks. Upon receipt by the applicable Issuing Bank from
or for account of the Company of any payment in respect of any Reimbursement Obligation or any such interest or other amount
(including by way of setoff or application of proceeds of any collateral security) such Issuing Bank shall promptly pay to
the Agent for account of each Bank that has funded its participation in such Reimbursement Obligations, such Bank’s
Revolving Commitment Percentage of such payment, each such payment by such Issuing Bank to be made in the same money and
funds in which received by such Issuing Bank. In the event any payment received by the applicable Issuing Bank and so paid to
the Banks hereunder is rescinded or must otherwise be returned by such Issuing Bank, each Bank shall, upon the request of
such Issuing Bank (through the Agent), repay to such Issuing Bank (through the Agent) the amount of such payment paid to such
Bank, with interest at the rate specified in clause (j) of this Section 2.03.

 

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(g)          (i)          Letter
of Credit Fees. The Company shall pay to the Agent for the pro rata account of the Banks (other than Defaulting Banks) in accordance
with their respective Revolving Loan Commitment Percentages), the following fees:

 

(A)         Commercial
Letters of Credit. For each commercial Letter of Credit, a letter of credit fee in an amount equal to 0.125% flat for each
90 day period or part thereof between the date of issuance and the expiration date thereof, on the face amount of such Letter of
Credit, payable in arrears on each Quarterly Date;

 

(B)         Standby
Letters of Credit. For each standby Letter of Credit, a letter of credit fee at a rate per annum equal to 2.35% on the average
daily undrawn amount of such standby Letter of Credit during the period from the date of issuance through and including the date
of drawing of the entire amount or expiration or termination thereof, payable in arrears on each Quarterly Date;

 

provided that
such letter of credit commissions with respect to each Letter of Credit set forth in clauses (A) and (B) above shall be non-refundable
and shall not be less than $500, and

 

(ii)         Letter
of Credit Fronting Fees. The Company shall pay to each Issuing Bank a fronting fee with respect to each Letter of Credit issued
by such Issuing Bank, which shall accrue at the rate or rates per annum separately agreed upon between the Company and the applicable
Issuing Bank on the daily amount of the Letter of Credit Liabilities (excluding any portion thereof attributable to unreimbursed
Reimbursement Obligations) during the period from and including the Closing Date to but excluding the later of the date of termination
of the Revolving Loan Commitments and the date on which there ceases to be any Letter of Credit Liabilities with respect to such
Issuing Bank, such fronting fees accrued through and including each Quarterly Date to be due and payable on the tenth (10) Business
Day following such Quarterly Date, commencing on the first such date to occur after the Closing Date; provided that all such fees
shall be payable on the date on which the Revolving Loan Commitments terminate and any such fees accruing after the date on which
the Revolving Loan Commitments terminate shall be payable upon the expiration of the applicable Letter of Credit or, if earlier,
the date on which the Revolving Loan Commitments terminate.

 

In addition, the Company shall pay to the
Agent for account of the applicable Issuing Bank, such Issuing Bank’s standard fees with respect to the amendment or negotiation
of any Letter of Credit or processing of drawings thereunder. Any other fees payable to an Issuing Bank pursuant to this paragraph
shall be payable within 10 Business Days after demand.

 

(h)          Letter
of Credit Liability Accounting. At the request of any Bank, the applicable Issuing Bank shall deliver (through the Agent) to
such Bank a notice describing the aggregate amount of all Letters of Credit outstanding at the end of any month. Upon the request
of any Bank from time to time, the applicable Issuing Bank shall deliver any other information reasonably requested by such Bank
with respect to each Letter of Credit then outstanding.

 

(i)          Conditions
to Issuance. (i) The issuance by the Issuing Banks of each Letter of Credit shall, in addition to the conditions precedent
set forth in Section 6 hereof, be subject to the conditions precedent that: (A) such Letter of Credit shall be denominated
in Dollars, shall state a maximum liability thereunder and shall be in such form, contain such terms and support such transactions
as shall be satisfactory to the applicable Issuing Bank consistent with its then current practices and procedures with respect
to letters of credit of the same type, and (B) the Company has executed and delivered such applications, agreements and other
instruments relating to such Letter of Credit as the applicable Issuing Bank has reasonably requested consistent with its then
current practices and procedures with respect to letters of credit of the same type, provided that in the event of any conflict
between any such application, agreement or other instrument and the provisions of this Agreement or any Security Document, the
provisions of this Agreement and the Security Documents shall control.

 

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(ii)         Notwithstanding
anything herein to the contrary, no Issuing Bank is under any obligation to issue or provide any Letter of Credit (including any
renewal of an Auto-Renewal Letter of Credit) unless consented to by such Issuing Bank and the Agent and, in respect of clauses
(A) and (B)(x) below, no Letter of Credit shall be issued or renewed without the consent of all Banks, if (A) any order, judgment
or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain such Issuing Bank from issuing
or providing such Letter of Credit, or (B) any Requirement of Law applicable to such Issuing Bank or any request or directive (whether
or not having the force of Law) from any Governmental Authority with jurisdiction over such Issuing Bank shall (x) prohibit, or
request that such Issuing Bank refrain from, the issuance or provision of such type of Letter of Credit generally or such Letter
of Credit in particular, (y) impose upon such Issuing Bank with respect to such Letter of Credit any restriction, reserve or capital
requirement (in each case for which such Issuing Bank is not otherwise compensated hereunder) not in effect on the Closing Date
at a time when such Issuing Bank is not otherwise issuing letters of credit for the account of similarly situated customers without
additional compensation or (z) impose upon such Issuing Bank any unreimbursed loss, cost or expense (in each case for which such
Issuing Bank is not otherwise compensated hereunder) which was not applicable on the Closing Date and which such Issuing Bank in
good faith deems material to it.

 

(j)          Default
Interest. To the extent that any Bank shall fail to pay any amount required to be paid pursuant to clause (e) or (f) of this
Section 2.03 on the due date therefor, such Bank shall pay interest to the applicable Issuing Bank (through the Agent) on such
amount from and including such due date to but excluding the date such payment is made at the Federal Funds Rate.

 

(k)         Modifications
to Letters of Credit. The issuance by the Issuing Banks of any modification or supplement to any Letter of Credit that increases
the face amount thereof or extends the maturity date thereof shall be subject to the same conditions applicable under this Section
2.03 to the issuance of new Letters of Credit (including, without limitation, the confirmation by the Agent required under clause
(a) above), and no such modification or supplement shall be issued hereunder unless the respective Letter of Credit affected thereby
would have complied with such conditions had it originally been issued hereunder in such modified or supplemented form.

 

(l)          Company
Indemnification. The Company hereby indemnifies and holds harmless each Bank and the Agent from and against any and all claims,
damages, losses, liabilities, costs or expenses that such Bank or the Agent may incur (or that may be claimed against such Bank
or the Agent by any Person whatsoever) by reason of or in connection with the execution and delivery or transfer of or payment
or refusal to pay by any Issuing Bank under any Letter of Credit; provided that the Company shall not be required to indemnify
any Issuing Bank or the Agent for any such claims, damages, losses, liabilities, costs or expenses to the extent, but only to the
extent, caused by (x) the willful misconduct or gross negligence of the applicable Issuing Bank in determining whether a request
presented under any Letter of Credit complied with the terms of such Letter of Credit or (y) the applicable Issuing Bank’s
failure to pay under any Letter of Credit after the presentation to it of a request strictly complying with the terms and conditions
of such Letter of Credit or (z) the requirement of any Bank to pay interest pursuant to Section 2.03(j) hereof. Nothing in this
Section 2.03 is intended to limit the other obligations of the Company, any Bank or the Agent under this Agreement.

 

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(m)         Obligations
Absolute. The Company’s Reimbursement Obligations shall be absolute, unconditional and irrevocable, and shall
be performed strictly in accordance with the terms of this Agreement under any and all circumstances whatsoever and irrespective
of (i) any lack of validity or enforceability of any Letter of Credit, or any term or provision therein, (ii) any draft or other
document presented under a Letter of Credit proving to be forged, fraudulent or invalid in any respect or any statement therein
being untrue or inaccurate in any respect, (iii) payment by the applicable Issuing Bank under a Letter of Credit against presentation
of a draft or other document that does not comply strictly with the terms of such Letter of Credit, (iv) the existence of any claim,
counterclaim, setoff, defense or other right that the Company may have at any time against any beneficiary or any transferee of
any Letter of Credit, the relevant Issuing Bank or any other Person, whether in connection with this Agreement, the transactions
contemplated hereby or by such Letter of Credit or any agreement or instrument relating thereto, or any unrelated transaction,
and (v) any other event or circumstance whatsoever, whether or not similar to any of the foregoing, that might, but for the provisions
of this Section, constitute a legal or equitable discharge of Company’s obligations hereunder. In addition to the forgoing,
the Company hereby assumes all risks of the acts or omissions of any beneficiary or transferee with respect to its use of any Letter
of Credit; provided, that this assumption is not intended to, and shall not, preclude the Company’s pursuing such
rights and remedies as it may have against the beneficiary or transferee at law or under any other agreement.

 

(n)          Exculpation.
Neither the Agent, the Banks nor the applicable Issuing Bank, nor any of their respective officers, directors, employees, attorneys
and agents shall have any liability or responsibility by reason of or in connection with the issuance or transfer of any Letter
of Credit by the applicable Issuing Bank or any payment or failure to make any payment thereunder (irrespective of any of the circumstances
referred to in the preceding clause (m)), or any error, omission, interruption, loss or delay in transmission or delivery of any
draft, notice or other communication under or relating to any Letter of Credit (including any document required to make a drawing
thereunder), any error in interpretation of technical terms or any consequence arising from causes beyond the control of the applicable
Issuing Bank; provided that the foregoing shall not be construed to excuse the applicable Issuing Bank from liability to the Company
to the extent of any direct damages (as opposed to consequential damages, claims in respect of which are hereby waived by the Company
to the extent permitted by applicable Law) suffered by the Company that are caused solely by the applicable Issuing Bank’s
gross negligence or willful misconduct when determining whether drafts and other documents presented under a Letter of Credit comply
with the terms thereof. The parties hereto expressly agree that:

 

(i)          The
Issuing Banks may accept documents that appear on their face to be in substantial compliance with the terms of a Letter of Credit
without responsibility for further investigation, regardless of any notice or information to the contrary, and may make payment
upon presentation of documents that appear on their face to be in substantial compliance with the terms of such Letter of Credit;

 

(ii)         The
Issuing Banks shall have the right, in their sole discretion, to decline to accept such documents and to make such payment if such
documents are not in strict compliance with the terms of such Letter of Credit; and

 

(iii)        This
sentence shall establish the standard of care to be exercised by the Issuing Banks when determining whether drafts and other documents
presented under a Letter of Credit comply with the terms thereof (and the parties hereto hereby waive, to the extent permitted
by applicable Law, any standard of care inconsistent with the foregoing).

 

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(o)          Auto-Renewal
Letters of Credit. If the Company so requests in any applicable Letter of Credit request (in accordance with Section 2.03(a)
hereof), the applicable Issuing Bank may, in its sole and absolute discretion, agree to issue a Letter of Credit that has automatic
renewal provisions (each, an “Auto-Renewal Letter of Credit”), provided that any such Auto-Renewal Letter
of Credit must permit (i) the Company to prevent any such renewal by delivering written notice thereof to such Issuing Bank not
less than five (5) Business Days prior to the applicable Nonrenewal Notice Date (as defined below) and (ii) such Issuing Bank to
prevent any such renewal at least once during the then current term of such Letter of Credit by giving prior notice to the beneficiary
thereof not later than a specified date to be agreed upon at the time such Letter of Credit is issued, which shall occur prior
to the date that is thirty (30) days after the Revolving Credit Commitment Termination Date (the “Nonrenewal Notice Date”).
Unless otherwise directed in writing by the applicable Issuing Bank at least thirty (30) days prior to the Nonrenewal Notice Date,
the Company shall not be required to make a specific request to such Issuing Bank for any renewal of an Auto-Renewal Letter of
Credit, and such Issuing Bank shall not be required to provide prior notice to the Company, the Agent or any Bank of any pending
renewal of an Auto-Renewal Letter of Credit. Once an Auto-Renewal Letter of Credit has been issued, the Company and the Banks shall
be deemed to have authorized the applicable Issuing Bank to permit the renewal of such Letter of Credit at any time to a date not
later than ninety (90) days after the Revolving Credit Commitment Termination Date (subject to the provisions of Section 2.11(b)(ii)
hereof), provided, however, that such Issuing Bank shall have no obligation to permit any renewal of an Auto-Renewal Letter of
Credit if (A) such Issuing Bank has determined that it would have no obligation at such time to issue such Letter of Credit in
its renewed form under the terms hereof (by reason of the provisions of Section 2.03(i) or otherwise) or (B) after giving
effect to any such renewal, the expiration date of such Auto-Renewal Letter of Credit would occur more than ninety (90) days after
the Revolving Credit Commitment Termination Date or the next occurring Nonrenewal Notice Date of such Auto-Renewal Letter of Credit
would occur more than thirty (30) days after the Revolving Credit Commitment Termination Date; provided, further however,
that the Issuing Bank shall not permit any renewal of an Auto-Renewal Letter of Credit if it has received notice (in writing) on
or before the date that is three Business Days before the Nonrenewal Notice Date (1) from the Agent that the Required Banks have
elected not to permit such extension or (2) from the Agent, the Required Banks or the Company that one or more of the applicable
conditions specified in Sections 2.03(i) or Section 6.02 is not then satisfied or waived in accordance with Section
11.04. For the avoidance of doubt, in no event shall the issuance or renewal of one or more Auto-Renewal Letters of Credit
cause the cap in the second proviso to the first sentence of Section 2.03 to be exceeded.

 

(p)          Issuance
Caps. Notwithstanding anything herein to the contrary, no Issuing Bank shall be obligated to issue any Letter of Credit if,
after giving effect to the issuance of such Letter of Credit, the aggregate outstanding Letter of Credit Liabilities attributed
to Letter of Credit issued by such Issuing Bank exceeds such Issuing Bank’s Issuance Cap, provided that subject to the terms
and conditions hereof, each Issuing Bank may issue Letters of Credit on a discretionary basis during such time as the aggregate
outstanding Letter of Credit Liabilities attributed to Letters of Credit issued by such Issuing Bank exceeds such Issuing Bank’s
Issuance Cap, but the applicable Issuing Bank shall have no obligation to do so.

 

(q)          Agent
Consent. If any Issuing Bank shall issue, extend or amend any Letter of Credit without obtaining prior consent of the Agent
(as provided in clause (a) above), such Letter of Credit (A) shall for all purposes be deemed to have been issued by such
Issuing Bank solely for its own account and risk and (B) shall not be considered a Letter of Credit outstanding under this Agreement
(and therefore shall not be included when calculating the Credit Exposure), and no Bank shall be deemed to have any participation
therein, effective as of the date of such issuance, amendment or extension, as the case may be, unless the Required Banks expressly
consent thereto; provided, however, that to be considered a Letter of Credit outstanding under this Agreement, the consent of all
Banks shall be required if any such issuance, amendment or extension is not then permitted hereunder by reason of the provisions
of this Section 2.03, provided further that in the event that such a Letter of Credit shall be issued, it shall not result in a
violation of Section 8.07 hereof or an Event of Default solely as a result of such issuance.

 

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(r)          Successor
Issuing Banks. (i) Any Issuing Bank may resign as an Issuing Bank upon sixty (60) days prior written notice to the Agent, the
Banks and the Company, provided that (x) any such resignation shall be subject to the condition that the appointment of a successor
pursuant to this Section 2.03(r) shall have occurred and after giving effect thereto, the aggregate Issuance Caps shall not be
less than the L/C Cap and (y) any resignation by Rabobank shall only be permitted in connection with (A) Rabobank’s assignment
of all of its right, title and interest in all Loans, Letters of Credit and its other Loan Obligations to a Person that is not
an Affiliate of Rabobank, in accordance with Section 11.06 hereof and (B) its resignation as Agent. If any Issuing Bank shall provide
notice of its resignation, then the Company may appoint from among the Banks a successor issuer of Letters of Credit, whereupon,
if such Bank shall accept such appointment (in its sole discretion), such successor issuer shall succeed to the rights, powers
and duties of the resigning Issuing Bank under this Agreement and the other Basic Documents, and the term “Issuing Bank”
shall include such successor issuer of Letters of Credit effective upon such appointment. At the time such resignation shall become
effective, the Company shall pay to the resigning Issuing Bank all accrued and unpaid fees payable by it pursuant to Section 2.03(g).
The acceptance of any appointment as an Issuing Bank hereunder in accordance with this Agreement, shall be evidenced by an agreement
entered into by such successor issuer of Letters of Credit, in a form satisfactory to the Company and the Agent and, from and after
the effective date of such agreement, such successor issuer of Letters of Credit shall become an “Issuing Bank” hereunder.
After the resignation of any Issuing Bank hereunder, the resigning Issuing Bank shall remain a party hereto and shall continue
to have all the rights and obligations of an Issuing Bank under this Agreement and the other Basic Documents with respect to Letters
of Credit issued by it prior to such resignation, but shall not be required to issue additional Letters of Credit. In connection
with any resignation pursuant to this Section 2.03(r), the Company, the resigning Issuing Bank and the successor issuer of Letters
of Credit shall arrange to have any outstanding Letters of Credit issued or provided by the resigning Issuing Bank replaced with
Letters of Credit issued or provided by the successor issuer of Letters of Credit. After any resigning Issuing Bank’s resignation
as an Issuing Bank, the provisions of this Agreement relating to such Issuing Bank shall inure to its benefit as to any actions
taken or omitted to be taken by it (A) while it was an Issuing Bank under this Agreement or (B) at any time with respect to Letters
of Credit issued by it.

 

(ii)         To
the extent that there are, at the time of any resignation as set forth in clause (i) above, any outstanding Letters of Credit,
nothing herein shall be deemed to impact or impair any rights and obligations of any of the parties hereto with respect to such
outstanding Letters of Credit (including, without limitation, any obligations related to the payment of fees or the reimbursement
or funding of amounts drawn), except that the Company, the resigning Issuing Bank and the successor issuer of Letters of Credit
shall have the additional obligations regarding outstanding Letters of Credit described in clause (i) above.

 

(s)          UCP;
ISP. Each Letter of Credit (other than each standby Letter of Credit), except as otherwise herein or therein expressly stated,
is subject to the UCP and to the extent not inconsistent therewith, shall also be subject to the Uniform Commercial Code of the
State of New York, as in effect from time to time. Each standby Letter of Credit, except as otherwise herein or therein expressly
stated, is subject to ISP and to the extent not inconsistent therewith, shall also be subject to the Uniform Commercial Code of
the State of New York, as in effect from time to time.

 

2.04        Intentionally
Omitted.

 

2.05        Changes
of the Commitment.

 

(a)          Revolving
Credit Commitment Termination Date. The Commitment shall be automatically reduced to zero on the Revolving Credit Commitment
Termination Date.

 

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(b)          Optional
Termination. The Company has the right at any time or from time to time (i) subject to the repayment in full of any Loans and
Reimbursement Obligations outstanding and so long as each issued Letter of Credit has expired, terminated or been fully Cash Collateralized
in the manner set forth in Section 2.11(b)(ii) hereof, to terminate the Revolving Loan Commitments and (ii) to reduce the unused
amount of the Revolving Loan Commitments (for which purpose use of the Commitments shall be deemed to include the aggregate amount
of Letter of Credit Liabilities and Swing Line Loans); provided that (w) the Company shall give notice of each such
termination or reduction as provided in Section 4.05 hereof, (x) each partial reduction shall be in an amount equal to
$10,000,000 (or an integral multiple of $10,000,000 in excess thereof), (y) each such partial reduction shall be applied pro rata
to reduce the Revolving Loan Commitment of each Bank and (z) if the Revolving Loan Commitment shall be reduced to an amount less
than either the Swing Line Commitment or the L/C Cap, the Swing Line Commitment and/or the L/C Cap, as applicable, shall be automatically
reduced to the amount of the reduced Revolving Loan Commitments.

 

(c)          No
Reinstatement. The Revolving Loan Commitment once terminated or reduced may not be reinstated.

 

(d)          Increases
in Revolving Loan Commitments. The Revolving Loan Commitments may be increased (so long as no Default shall have occurred and
be continuing), with the consent of the Agent, each Fronting Bank (such consent of each Fronting Bank to be required only in connection
with an increase that involves a New Bank), the Increasing Banks and the Company, at any time and from time to time, prior to the
Revolving Credit Commitment Termination Date in an aggregate principal amount (for all such increases) of up to $75,000,000 (the
“Maximum Aggregate Increase Amount”) as follows:

 

(i)          The
Company may at any time make a written request for such increase to the Agent, who shall forward a copy of any such request to
each of the Banks. Each request by the Company pursuant to the immediately preceding sentence shall specify a proposed effective
date of such increase which shall not be less than 45 days after the date of such request (the “Requested Increase Effective
Date”), the aggregate amount of such requested increase in Revolving Loan Commitments, which shall be in an amount equal
to $20,000,000 or, if less, the unused portion of the Maximum Aggregate Increase Amount (or an incremental multiple of $5,000,000
in excess thereof) (the “Increase Amount”), and shall constitute an invitation to each Bank to increase its
Revolving Loan Commitment by a ratable portion of such Increase Amount.

 

(ii)         Each
Bank, acting in its sole discretion and with no obligation to increase its Revolving Loan Commitment pursuant to this Section 2.05(d),
shall by written notice to the Company and the Agent advise the Company and the Agent whether or not such Bank agrees to all or
any portion of such increase in Revolving Loan Commitment within thirty (30) days (or such lesser number of days as agreed by the
Company and the Agent) after the Company’s request. Any such Bank may, in its sole discretion, accept all of such ratable
increase, a portion of such increase, or decline to accept any of such increase in Revolving Loan Commitment. If any Bank shall
not have responded affirmatively within such thirty (30)-day (or lesser, if applicable) period, such Bank shall be deemed to have
rejected the Company’s request for an increase in Revolving Loan Commitment in full. Promptly following the conclusion of
such thirty (30)-day (or lesser, if applicable) period, the Agent shall notify the Company of the results of such request to the
Banks to so increase the Revolving Loan Commitments by the Increase Amount.

 

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(iii)        If
the aggregate amount of the increases in Revolving Loan Commitment which the Banks have accepted in accordance with clause (ii)
of this Section 2.05(d) shall be less than the Increase Amount, the Company and the Agent may offer to such additional Persons
as may be agreed by the Company and the Agent (“New Banks”) the opportunity to make available such amount of
new Revolving Loan Commitments as may be required so that the aggregate increases in Revolving Loan Commitments by the existing
Banks and new Revolving Loan Commitments by the New Banks shall equal the Increase Amount. The effectiveness of all such increases
in Revolving Loan Commitments are subject to the satisfaction of the following conditions: (A) each Bank that so elects to increase
its Revolving Loan Commitments (each an “Increasing Bank”), each New Bank, the Agent, the Issuing Banks, the Swing
Line Bank and the Company shall have executed and delivered an agreement, substantially in the form of Exhibit F (an “Increase
and New Bank Agreement”) and such other documents reasonable required by the Agent; (B) any fees and other amounts (including,
without limitation, pursuant to Section 11.03) payable by the Company in connection with such increase shall have been paid; (C)
any other amounts then due hereunder shall have been paid; and (D) delivery to the Agent of a certificate of an authorized officer
of the Company as to the matters set forth in Sections 6.02.

 

(iv)        Upon
the Requested Increase Effective Date, Schedule 1.0 of the Increase and New Bank Agreement, which shall reflect the Revolving Loan
Commitments and Revolving Loan Commitment Percentages of the Banks at such time, shall be deemed to supersede Schedule A hereto
without any further action or consent of any party, and each Bank that is not increasing its Revolving Loan Commitment under this
Section 2.05(d) hereby agrees to the reallocation of the Commitments and Revolving Loan Commitment Percentages as set forth in
the applicable Increase and New Bank Agreement (but, for the avoidance of doubt, not any change in such Bank’s Commitment).
The Agent shall cause a copy of such revised Schedule A to be available to the Issuing Banks and the Banks.

 

2.06        Commitment
Fee. The Company shall pay to the Agent for account of each Bank a commitment fee on the daily average unused portion of the
Revolving Loan Commitment of such Bank (for which purpose (a) the aggregate amount of any Letter of Credit Liabilities shall be
deemed to be a use of the Revolving Loan Commitment and (b) the aggregate amount of any Swing Line Loans then outstanding shall
not be deemed to be a use of the Revolving Loan Commitment), for the period from and including the date of this Agreement to but
not including the earlier of the date the Revolving Loan Commitment is terminated and the Revolving Credit Commitment Termination
Date, at a rate per annum equal to 0.50%. Accrued commitment fees shall be payable on each Quarterly Date and on the earlier of
the date the Revolving Loan Commitment is terminated and the Revolving Credit Commitment Termination Date. For purposes of this
paragraph, the Revolving Loan Commitment of a Defaulting Bank shall be deemed to be fully utilized for as long as such Bank is
a Defaulting Bank.

 

2.07        Lending
Offices. The Loans of each Type made by each Bank shall be made and maintained at such Bank’s Applicable Lending Office
for Loans of such Type.

 

2.08        Several
Obligations; Remedies Independent. The failure of any Bank to make any Loan or other extension of credit to be made by it on
the date specified therefor shall not relieve any other Bank of its obligation to make its Loan or other extension of credit on
such date and no Bank has any obligation to the Agent or any other Bank for the failure by any such other Bank to make any Loan
or other extension of credit required to be made by such other Bank. The amounts payable by the Company at any time hereunder and
under the Notes to each Bank shall be a separate and independent debt and each Bank shall be entitled to protect and enforce its
rights arising out of this Agreement and the Notes, and it shall not be necessary for any other Bank or the Agent to consent to,
or be joined as an additional party in, any proceedings for such purposes.

 

2.09        Evidence
of Indebtedness.

 

(a)          Maintenance
of Loan Accounts by Banks. Each Bank shall maintain in accordance with its usual practice an account or accounts evidencing
the indebtedness of the Company to such Bank resulting from each Loan made by such Bank, including the amounts of principal and
interest payable and paid to such Bank from time to time hereunder.

 

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(b)          Maintenance
of Loan Accounts by the Agent. The Agent shall maintain accounts in which it shall record: (i) the amount of each Loan made
hereunder, the Type thereof and the Interest Period applicable thereto; (ii) the amount of any principal or interest due and payable
or to become due and payable from the Company to each Bank hereunder; and (iii) the amount of any sum received by the Agent hereunder
for the account of the Banks and each Bank’s share thereof.

 

(c)          Effect
of Entries. The entries made in the accounts maintained pursuant to paragraph (a) or (b) of this Section shall be prima facie
evidence of the existence and amounts of the obligations recorded therein (absent manifest error); provided that the failure of
any Bank or the Agent to maintain such accounts or any error therein shall not in any manner affect the obligation of the Company
to repay the Loans in accordance with the terms of this Agreement.

 

(d)          Promissory
Notes. Any Bank may request that Loans made by it be evidenced by a promissory note substantially in the form of Exhibit A
hereto. In such event, the Company shall prepare, execute and deliver to such Bank a promissory note payable to the order of such
Bank (or, if requested by such Bank, to such Bank and its registered assigns) and in a form approved by the Agent. Thereafter,
the Loans evidenced by such promissory note and interest thereon shall at all times (including after assignment pursuant to Section
11.05 be represented by one or more promissory notes in such form payable to the order of the payee named therein (or, if such
promissory note is a registered note, to such payee and its registered assigns).

 

2.10        Optional
Prepayments and Conversions or Continuations of Loans. Subject to Section 4.04 hereof, the Company has the right to prepay
Loans, or to Convert Loans of one Type into Loans of another Type or Continue Loans of one Type as Loans of the same Type, at any
time or from time to time, in whole or in part, without premium or penalty, except as may be required by Section 5 hereof, provided
that: (a) the Company shall give the Agent notice of each such prepayment, Conversion or Continuation pursuant to a Notice of Prepayment,
Conversion or Continuation substantially in the form of Exhibit J hereto and as provided in Section 4.05 hereof (and,
upon the date specified in any such notice of prepayment, the amount to be prepaid shall become due and payable hereunder); provided,
however, notwithstanding Section 11.02(b) hereof, an authorized officer of the Company may deliver to the Agent an
unsigned Notice of Prepayment, Conversion or Continuation by email to fm.am.SyndicatedLoans@rabobank.com (or such other
email as the Agent may direct in writing) so long as the Company delivers to the Agent a signed copy thereof relating to such notice
within five (5) Business Days of the date such email is delivered to the Agent, provided, that without limiting the Company’s
obligations above, if the signed copy shall not be received, each of the Agent and the Banks shall be authorized to rely on the
unsigned notice (with the same force and effect as a signed notice); and (b) a Eurodollar Loan may be prepaid or Converted
only on the last day of an Interest Period for such Loan. Notwithstanding the foregoing, and without limiting the rights and remedies
of the Banks under Section 9 hereof, in the event that any Event of Default exists, the Agent may (and at the request of the
Required Banks shall) suspend the right of the Company to Convert any Loan into a Eurodollar Loan, or to Continue any Loan as a
Eurodollar Loan, in which event all Eurodollar Loans shall be Converted (on the last day(s) of the respective Interest Periods
therefor) to Base Rate Loans.

 

2.11        Mandatory
Prepayments.

 

(a)          Borrowing
Base. Until the Revolving Credit Commitment Termination Date, the Company shall from time to time prepay the Loans (and/or
provide cover for Letter of Credit Liabilities as specified in clause (b) below) in such amounts as shall be necessary so
that at all times the aggregate outstanding amount of the Credit Exposure shall not exceed the lesser of the Borrowing Base and
the aggregate amount of the Revolving Loan Commitments, such amount to be applied, first, to Swing Line Loans outstanding, second,
to Revolving Loans outstanding, subject to the terms of Section 2.3 of the Intercreditor Agreement, provided, that if after
giving effect to Section 2.3 of the Intercreditor Agreement, a deficiency shall continue to exist, an Event of Default under Section
9.01(a) hereof shall occur.

 

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(b)          Cover
for Letter of Credit Liabilities. (i) In the event that the Company shall be required pursuant to this Section 2.11 to
provide cover for Letter of Credit Liabilities, the Company shall effect the same by depositing Cash Collateral with the Agent
in an amount equal to the required cover amount, which funds shall be retained by the Agent in the Collateral Account (as collateral
security in the first instance for the Letter of Credit Liabilities) until such time as the relevant Letters of Credit have been
terminated and all of the Letter of Credit Liabilities in respect thereof paid in full or such time as such funds are no longer
required pursuant to Section 2.11(a) hereof; provided that no amounts so held shall be released if an Event of Default then exists.

 

(ii)         The
Company shall provide cover for each Letter of Credit with an expiry date after the Revolving Credit Commitment Termination Date
by depositing Cash Collateral with the Agent on or prior to the date that is five (5) Business Days prior to the Revolving Credit
Commitment Termination Date in an amount equal to 103% of the face amount of each such Letter of Credit which funds shall be retained
by the Agent in the Collateral Account (as collateral security in the first instance for the Letter of Credit Liabilities) until
such time as the relevant Letters of Credit have been terminated and all of the Letter of Credit Liabilities in respect thereof
paid in full.

 

Section
3.

Payments of Principal and Interest.

 

3.01        Repayment
of Loans. The Company hereby promises to pay to the Agent for account of each Bank the entire outstanding principal amount
of the Loans, and each Loan shall mature and be due and payable, on the Revolving Credit Commitment Termination Date.

 

3.02        Interest.

 

(a)          Revolving
Loans. The Company hereby promises to pay to the Agent for account of each Bank interest on the unpaid principal amount of
each Revolving Loan made by such Bank for the period from and including the date of such Revolving Loan to but excluding the date
such Revolving Loan shall be paid in full, at the following rates per annum:

 

(i)          during
such periods as such Revolving Loan is a Base Rate Loan, the Base Rate (as in effect from time to time) plus the Applicable
Margin; and

 

(ii)         during
such periods as such Revolving Loan is a Eurodollar Loan, for each Interest Period relating thereto, the Eurodollar Rate for such
Revolving Loan for such Interest Period plus the Applicable Margin.

 

(b)          Swing
Line Loans. The Company hereby promises to pay to the Agent for account of the Swing Line Bank interest on the unpaid principal
amount of each Swing Line Loan made by the Swing Line Bank for the period from and including the date of such Swing Line Loan to
but excluding the date such Swing Line Loan shall be paid in full, at the Federal Funds Rate (as in effect from time to time) plus
the Applicable Margin.

 

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(c)          Post
Default Interest. Notwithstanding the foregoing, the Company hereby promises to pay to the Agent, at the election of the Required
Banks, for account of each Bank interest at the applicable Post-Default Rate on any principal of any Loan, on any Reimbursement
Obligation and on any other amount payable by the Company hereunder or under the Notes that shall not be paid in full when due
(whether at stated maturity, by acceleration, by mandatory prepayment or otherwise), for the period from and including the due
date thereof to but excluding the date the same is paid in full.

 

(d)          Payment
of Interest. Accrued interest on each Loan shall be payable (i) in the case of a Base Rate Loan and Swing Line Loans, monthly
on the last Business Day of each month, (ii) in the case of a Eurodollar Loan, on the last day of each Interest Period therefor,
and (iii) in the case of any Loan, upon the payment or prepayment thereof or the Conversion of such Loan to a Loan of another Type
(but only on the principal amount so paid, prepaid or Converted), except that interest payable at the Post-Default Rate shall be
payable from time to time on demand. Promptly after the determination of any interest rate provided for herein or any change therein,
the Agent shall give notice thereof to the Banks to which such interest is payable and to the Company.

 

Section
4.

Payments; Computations; Etc.

 

4.01        Payments.

 

(a)          Payments
Generally. Except to the extent otherwise provided herein, all payments of principal, interest, Reimbursement Obligations and
other amounts to be made by the Company under this Agreement and the other Basic Documents, and, except to the extent otherwise
provided therein, all payments to be made by the Obligors under any other Basic Document, shall be made in Dollars, in immediately
available funds, without deduction, set-off or counterclaim, to the Agent, not later than 1:00 p.m. New York time on the date
on which such payment shall become due (each such payment made after such time on such due date to be deemed to have been made
on the next succeeding Business Day). The Company shall, at the time of making each payment under this Agreement or any Note, for
account of any Bank specify to the Agent (which shall so notify the intended recipient(s) thereof) the Loans, Reimbursement Obligations
or other amounts payable by the Company hereunder to which such payment is to be applied (and in the event that the Company fails
to so specify, or if an Event of Default exists, the Agent may distribute such payment to the Banks for application in such manner
as it, subject to Section 4.03 hereof, may determine to be appropriate).

 

(b)          Payments
to the Banks. Except as otherwise provided herein, each payment received by the Agent under this Agreement or any Note for
account of any Bank shall be paid by the Agent promptly to such Bank, in immediately available funds, for account of such Bank’s
Applicable Lending Office for the Loan or other obligation in respect of which such payment is made.

 

(c)          Payments
on a Non-Business Day. If the due date of any payment under this Agreement or any Note would otherwise fall on a day that is
not a Business Day, such date shall be extended to the next succeeding Business Day, and interest shall be payable for any principal
so extended for the period of such extension.

 

4.02         Computations.
Interest on Loans, Reimbursement Obligations and all fees shall be computed on the basis of a year of 360 days and actual days
elapsed (including the first day but excluding the last day) occurring in the period for which payable.

 

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4.03        Pro
Rata Treatment. Except to the extent otherwise provided herein: (a) each borrowing of Loans from and participation interests
in Swing Line Loans and Letters of Credit purchased by the Banks shall be made from the Banks, each payment of commitment fee under
Section 2.06 hereof in respect of Revolving Loan Commitments shall be made for account of the Banks, each payment of Letter of
Credit fee under Section 2.03(g)(i) hereof, and each termination or reduction of the amount of the Revolving Loan Commitments under
Section 2.05 hereof shall be applied to the Revolving Loan Commitments of the Banks, pro rata according to the amounts of their
respective Revolving Loan Commitments; (b) each payment or prepayment of principal of Loans by the Company shall be made for account
of the Banks pro rata in accordance with the respective unpaid principal amounts of the Loans held by them; and (c) each payment
of interest on Loans by the Company shall be made for account of the Banks pro rata in accordance with the amounts of interest
on such Loans then due and payable to the Banks.

 

4.04        Minimum
Amounts. Except for mandatory prepayments made pursuant to Section 2.11 hereof:

 

(a)          each
borrowing, Conversion and partial prepayment of principal of Revolving Loans shall be in an amount at least equal to the following:

 

(i)          $1,000,000
or multiples of $250,000 in excess thereof in the case of Eurodollar Loans,

 

(ii)         $250,000
or multiples of $50,000 in excess thereof in the case of Base Rate Loans; and

 

(b)          each
borrowing and partial prepayment of principal of Swing Line Loans shall be in an amount at least equal to $500,000 or multiples
of $25,000 in excess thereof

 

(borrowings, Conversions or prepayments
of or into Loans of different Types or, in the case of Eurodollar Loans, having different Interest Periods at the same time hereunder
to be deemed separate borrowings, Conversions and prepayments for purposes of the foregoing, one for each Type or Interest Period).

 

4.05        Certain
Notices. Notices by the Company to the Agent of terminations or reductions of the Revolving Loan Commitments, of borrowings,
Conversions, Continuations and optional prepayments of Loans, of Types of Loans and of the duration of Interest Periods shall be
irrevocable. All such notices shall be received by the Agent not later than 10:00 a.m. New York time on the number of Business
Days prior to the date of the relevant termination, reduction, borrowing, Conversion, Continuation or prepayment or the first day
of such Interest Period specified below, provided that any notice received after the time set forth above on any Business Day or
on any date other than a Business Day shall be deemed received on the next succeeding Business Day:

 

	Notice	 	Number of Business Days Prior
	 	 	 
	Termination or reduction of the Commitments	 	Five
	 	 	 
	Borrowing or prepayment of, or Conversions into, Base Rate Loans or borrowing or prepayment of Swing Line Loans	 	Same day
	 	 	 
	Borrowing or prepayment of, Conversions into, Continuations as, or duration of Interest Period for, Eurodollar Loans	 	Three

 

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Each such notice of termination or reduction
shall specify the amount of the Revolving Loan Commitments to be terminated or reduced. Each such notice of borrowing, Conversion,
Continuation or optional prepayment shall specify the amount (subject to Section 4.04 hereof) and Type of each Loan to be
borrowed, Converted, Continued or prepaid and the date of borrowing, Conversion, Continuation or optional prepayment (which shall
be a Business Day). Each such notice of the duration of an Interest Period shall specify the Loans to which such Interest Period
is to relate. In the event that the Company fails to select the Type of Loan, or the duration of any Interest Period for any Eurodollar
Loan, within the time period and otherwise as provided in this Section 4.05, such Loan (if outstanding as a Eurodollar Loan)
will be automatically Converted into a Base Rate Loan on the last day of the then current Interest Period for such Loan or (if
outstanding as a Base Rate Loan) will remain as, or (if not then outstanding) will be made as, a Base Rate Loan.

 

4.06        Non-Receipt
of Funds by the Agent. Unless the Agent has been notified by a Bank or the Company (the “Payor”) prior to
the date on which the Payor is to make payment to the Agent of (in the case of a Bank) the proceeds of a Loan to be made by such
Bank hereunder or (in the case of the Company) a payment to the Agent for account of one or more of the Banks hereunder (such payment
being herein called the “Required Payment”), which notice shall be effective upon receipt, that the Payor does
not intend to make the Required Payment to the Agent, the Agent may assume that the Required Payment has been made and may, in
reliance upon such assumption (but shall not be required to), make the amount thereof available to the intended recipient(s) on
such date; and, if the Payor has not in fact made the Required Payment to the Agent, the recipient(s) of such payment shall, on
demand, repay to the Agent the amount so made available together with interest thereon in respect of each day during the period
commencing on the date (the “Advance Date”) such amount was so made available by the Agent until the date the
Agent recovers such amount at a rate per annum equal to the Federal Funds Rate for such day and, if such recipient(s) shall fail
promptly to make such payment, the Agent shall be entitled to recover such amount, on demand, from the Payor, together with interest
as aforesaid, provided that if neither the recipient(s) nor the Payor shall return the Required Payment to the Agent within
three Business Days of the Advance Date, then, retroactively to the Advance Date, the Payor and the recipient(s) shall each be
obligated to pay interest on the Required Payment as follows:

 

(i)          if
the Required Payment shall represent a payment to be made by the Company to the Banks, (x) the Company shall be obligated retroactively
to the Advance Date to pay interest in respect of the Required Payment at the Post-Default Rate and (y) the recipient(s) shall
be obligated retroactively to the Advance Date to pay interest in respect of the Required Payment at the Federal Funds Rate (and,
in case the recipient(s) shall return the Required Payment to the Agent, without limiting the obligation of the Company under Section 3.02
hereof to pay interest to such recipient(s) at the Post-Default Rate in respect of the Required Payment); and

 

(ii)         if
the Required Payment shall represent proceeds of a Loan to be made by the Banks to the Company, (x) the Payor shall be obligated
retroactively to the Advance Date to pay interest in respect of the Required Payment at the Federal Funds Rate and (y) if such
Payor’s Required Payment is not made available to the Agent by such Payor within five (5) Business Days of such Advance Date,
the Agent shall also be entitled to recover such amount for its own account with interest thereon at the rate per annum applicable
to Base Rate Loans, within five (5) Business Days of demand from the Company.

 

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4.07        Sharing
of Payments, etc.

 

(a)          Set
off. If an Event of Default exists, each Bank and each of their respective Affiliates are hereby authorized at any time and
from time to time, to the fullest extent permitted by Law and Section 10.14, to set off and apply any and all deposits (general
or special, time or demand, provisional or final) at any time held and other indebtedness or obligations at any time owing by such
Bank or any Affiliates to or for the credit or the account of any Obligor against any of and all the Obligations of any Obligor
now or hereafter existing under any Basic Document held by such Bank or Affiliate, irrespective of whether or not such Bank shall
have made any demand and although such Obligations may be unmatured. The rights of each Bank under this Section are in addition
to other rights and remedies (including other rights of setoff) which such Bank may have.

 

(b)          Sharing
of Payments on Loan Obligations. If any Bank shall obtain from any Obligor payment of any Loan Obligation owing to it through
the exercise of any right of set-off, banker’s lien or counterclaim or similar right or otherwise (other than from the Agent
as provided herein but including as a result of the rights under Section 4.07(a)), and, as a result of such payment, such Bank
has received a greater percentage of the Loan Obligations due to such Bank than the percentage received by any other Bank, it shall
promptly purchase from such other Banks participations in (or, if and to the extent specified by such Bank, direct interests in)
the Loan Obligations owing to such other Banks in such amounts, and make such other adjustments from time to time as shall be equitable,
to the end that all the Banks shall share the benefit of such excess payment (net of any expenses that may be incurred by such
Bank in obtaining or preserving such excess payment) pro rata in accordance with the Loan Obligations owing to each of the Banks.
To such end all the Banks shall make appropriate adjustments among themselves (by the resale of participations sold or otherwise)
if such payment is rescinded or must otherwise be restored. The Company agrees that any Bank so purchasing such a participation
(or direct interest) may exercise all rights of set-off, banker’s lien, counterclaim or similar rights with respect to such
participation as fully as if such Bank were a direct holder of Loans or other amounts (as the case may be) owing to such Bank in
the amount of such participation.

 

(c)          Sharing
of Benefits of Secured Claim. Nothing contained herein shall require any Bank to exercise any such right or shall affect the
right of any Bank to exercise, and retain the benefits of exercising, any such right with respect to any other indebtedness or
obligation of any Obligor. If, under any applicable bankruptcy, insolvency or other similar Law, any Bank receives a secured claim
in lieu of a set-off to which this Section 4.07 applies, such Bank shall, to the extent practicable, exercise its rights in
respect of such secured claim in a manner consistent with the rights of the Banks entitled under this Section 4.07 to share
in the benefits of any recovery on such secured claim..

 

4.08        Application
of Proceeds of Collateral and Subsidiary Guarantee. Subject to the terms of the Intercreditor Agreement, all amounts received
under the Subsidiary Guarantee and all proceeds received by the Agent from the sale or other liquidation of the Collateral when
an Event of Default exists and the Loan Obligations are unpaid, shall first be applied as payment of the accrued and unpaid fees
of the Agent hereunder and then to all other unpaid or unreimbursed Obligations (including reasonable attorneys’ fees and
expenses) owing to the Agent in its capacity as Agent only and then any remaining amount of such proceeds shall be distributed:

 

(a)          first,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of Loan Obligations (including, without limitation,
Cash Collateralization of Letters of Credit), until all the Loan Obligations have been paid and satisfied in full and in respect
of outstanding Letters of Credit, fully Cash Collateralized in accordance with Section 9.02;

 

(b)          second,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of Hedging Obligations (other than Excluded Swap
Obligations), until all the Hedging Obligations (other than Excluded Swap Obligations) have been paid and satisfied in full or
Cash Collateralized;

 

    	41

    	 

    

 

(c)          third,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of the Deposit Obligations, until all Deposit
Obligations have been paid and satisfied in full or Cash Collateralized; and

 

(d)          fourth,
to the Secured Parties, pro rata in accordance with the respective unpaid amounts of the remaining Obligations (other than Excluded
Swap Obligations).

 

After all the Obligations (other than Excluded
Swap Obligations) have been paid and satisfied in full, all Commitments have terminated and all Letters of Credit have expired,
terminated or been Cash Collateralized as set forth above, any proceeds of Collateral shall be delivered to the Person entitled
thereto as directed by the Company or as otherwise determined by applicable Law or applicable court order.

 

4.09        Noncash
Proceeds. Notwithstanding anything contained herein to the contrary, if the Agent shall ever acquire any Collateral through
foreclosure or by a conveyance in lieu of foreclosure or by retaining any of the Collateral in satisfaction of all or part of the
Obligations or if any proceeds of Collateral received by the Agent to be distributed and shared pursuant to this Section are in
a form other than immediately available funds, the Agent shall not be required to remit any share thereof under the terms hereof
and the Secured Parties shall only be entitled to their undivided interests in the Collateral or noncash proceeds as determined
by Section 4.08. The Secured Parties shall receive the applicable portions (in accordance with the foregoing Section 4.08) of any
immediately available funds consisting of proceeds from such Collateral or proceeds of such noncash proceeds so acquired only if
and when received by the Agent in connection with the subsequent disposition thereof. While any Collateral or other property to
be shared pursuant to Section 4.08 is held by the Agent pursuant to this Section 4.09, the Agent shall hold such Collateral or
other property for the benefit of the Secured Parties and all matters relating to the management, operation, further disposition
or any other aspect of such Collateral or other property shall be resolved by the agreement of the Required Banks.

 

4.10        Return
of Proceeds. If at any time payment, in whole or in part, of any amount distributed by the Agent hereunder is rescinded or
must otherwise be restored or returned by the Agent as a preference, fraudulent conveyance, or otherwise under any bankruptcy,
insolvency, or similar Law, then each Person receiving any portion of such amount agrees, upon demand, to return the portion of
such amount it has received to the Agent together with a pro rata portion of any interest paid by or other charges imposed on the
Agent in connection with such rescinded or restored payment.

 

4.11        Notice
of Amount of Obligations. Prior to making any distribution under Section 4.08, the Agent shall request each Bank to provide
the Agent with a statement of the amounts of Hedging Obligations and Deposit Obligations then owed to such Bank and its Affiliates.
A Bank may provide such information to the Agent at any time and the Agent may also request such information at any time. If a
Bank does not provide the Agent a statement of the amount of any such Obligations within three (3) Business Days of the date requested,
the Agent may make distributions under Section 4.08 thereafter and the amount of Hedging Obligations and Deposit Obligations then
owed to such Bank and its Affiliates shall conclusively be deemed to be zero for purposes of such distributions. Neither the Bank
nor any of its Affiliates shall have a right to share in such distributions with respect to any Hedging Obligations or Deposit
Obligations owed to it. If a Bank shall thereafter provide the Agent a statement of the amount of the Hedging Obligations and Deposit
Obligations then owed to such Bank and its Affiliates, any distribution under Section 4.08 made after the notice is received by
the Agent shall take into account the amount of the Hedging Obligations and/or Deposit Obligations then owed. Banks and their Affiliates
that shall not have provided the statement (required under this Section 4.11) of the amount of owing Hedging Obligations or Deposit
Obligations shall not be entitled to share retroactively in any distribution made prior to the date when such statement was provided.
In furtherance of the provisions of Section 10, the Agent shall in all cases be fully protected in making distributions hereunder
in accordance with the statements of the Hedging Obligations and Deposit Obligations received from the Banks under this Section 4.11
(or lack thereof).

 

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4.12        Defaulting
Banks.

 

(a)          Anything
contained herein to the contrary notwithstanding, in the event that any Bank becomes a Defaulting Bank, then the Swing Line Bank
may, in its sole discretion, require such Defaulting Bank to deposit Cash Collateral with the Agent in an aggregate amount equal
to such Defaulting Bank’s participations in any requested or outstanding Swing Line Loans, and each Defaulting Bank hereby
grants a first priority security interest in such Cash Collateral in favor of the Agent, for the sole benefit of the Swing Line
Bank. In the event that such Defaulting Bank fails to deposit Cash Collateral as required hereby, the Company may, at any time
thereafter, upon five (5) Business Days prior written notice to such Defaulting Bank, require that such Defaulting Bank terminate
its Revolving Loan Commitment and any obligations hereunder and under the other Basic Documents and transfer all of its Credit
Exposure in accordance with Section 11.06 (subject to the prior written consent of such assignees, the Agent, the Issuing
Banks and the Swing Line Bank) to one or more of the existing Banks or to one or more new Banks, if such assignee Banks can be
found by the Company.

 

(b)          Anything
contained herein to the contrary notwithstanding, in the event that any Bank becomes a Defaulting Bank, then each Issuing Bank
may, in its sole discretion, require such Defaulting Bank to deposit Cash Collateral with the Agent in an aggregate amount equal
to such Defaulting Bank’s participations in any requested or outstanding Letters of Credit, and each Defaulting Bank hereby
grants a first priority security interest in such Cash Collateral in favor of the Agent, for the sole benefit of the applicable
Issuing Bank. In the event that such Defaulting Bank fails to deposit Cash Collateral as required hereby, the Company may, at any
time thereafter, upon five (5) Business Days prior written notice to such Defaulting Bank, require that such Defaulting Bank terminate
its Revolving Loan Commitment and any obligations hereunder and under the other Basic Documents and transfer all of its Credit
Exposure and participations therein in accordance with Section 11.06 (subject to the prior written consent of such Banks,
the Agent, the Issuing Banks and the Swing Line Bank) to one or more of the existing Banks or to one or more new Banks, if such
assignee Banks can be found by the Company.

 

(c)          Notwithstanding
any other provision in this Agreement to the contrary, if at any time a Bank becomes a Defaulting Bank, the following provisions
shall apply so long as such Bank is a Defaulting Bank:

 

(i)          Fees
pursuant to Section 2.06 shall cease to accrue on such Defaulting Bank’s unused Revolving Loan Commitment until such
time as such Bank is no longer a Defaulting Bank, at which time fees pursuant to Section 2.06 shall resume to accrue and
be payable in accordance with Section 2.06.

 

(ii)         With
respect to any Fronting Exposure of the Defaulting Bank (including, without limitation, any that exists at the time a Bank becomes
a Defaulting Bank or thereafter) (the “Defaulting Bank’s Exposure”):

 

    	43

    	 

    

 

(A)         such
Defaulting Bank’s Exposure shall automatically be reallocated (without further action of any party) among the non-Defaulting
Banks in accordance with their respective Revolving Loan Commitment Percentages (calculated without regard to any Defaulting Bank’s
Revolving Loan Commitments) to the extent of each non-Defaulting Bank’s unused Revolving Loan Commitment, provided,
that (x) the conditions set forth in Section 6.02 shall be satisfied at the time of such reallocation (and, unless the Company
shall have otherwise notified the Agent at such time, the Company shall be deemed to have represented and warranted that such conditions
are satisfied at such time) and (y) in no event shall any non-Defaulting Bank’s Credit Exposure following such reallocation
exceed such non-Defaulting Bank’s Revolving Loan Commitment;

 

(B)         if
the reallocation described in paragraph (A) above cannot, or can only partially, be effected, then the Company shall within one
(1) Business Day following notice by the Agent, the applicable Issuing Bank or the Swing Line Bank (1) deliver to the Agent Cash
Collateral for such Defaulting Bank’s Revolving Loan Commitment Percentage of the Letter of Credit Liabilities (after giving
effect to any partial reallocation pursuant to paragraph (A) above) as otherwise provided in this Agreement for so long as such
Letter of Credit Liabilities are outstanding and (2) immediately repay each Swing Line Loan for so long as such Swing Line Loan
or any participation therein is outstanding;

 

(C)         if
the Company shall deliver to the Agent Cash Collateral for any portion of such Defaulting Bank’s participations in Letter
of Credit Liabilities pursuant to Section 4.12(b) or Section 4.12(c)(ii)(B) then the Company shall not be required
to pay any fees for the benefit of such Defaulting Bank pursuant to Section 2.03(g) of this Agreement with respect to the
portion of such Defaulting Bank’s Revolving Loan Commitment Percentage of outstanding Letters of Credit equal to such Cash
Collateral during the period such Cash Collateral is held by the Agent;

 

(D)         to
the extent the Defaulting Bank’s Exposure is reallocated to the non-Defaulting Banks pursuant to clause (A) above, the fees
payable to the Banks pursuant to Sections 2.03 and 2.06 shall be adjusted in accordance with such non-Defaulting Banks’ Revolving
Loan Commitment Percentages (disregarding the Revolving Loan Commitments of any Defaulting Bank);

 

(E)         if
any Defaulting Bank’s Exposure is not Cash Collateralized, reallocated or prepaid pursuant to this Section 4.12, then, without
prejudice to any rights or remedies of the Issuing Banks, the Swing Line Bank or any Bank hereunder, all fees payable to the Banks
pursuant to Sections 2.03(g) and 2.06 with respect to such Defaulting Bank’s Exposure that is not Cash Collateralized, reallocated
or prepaid shall be payable to the Issuing Banks or the Swing Line Bank, as applicable, until such Defaulting Bank’s Exposure
is fully Cash Collateralized as set forth in this Section 4.12, reallocated and/or prepaid;

 

(F)         (i)
no Issuing Banks shall be required to issue, provide, amend or increase any Letter of Credit, unless it is satisfied in its sole
discretion that the related exposure will be 100% covered by the Revolving Loan Commitments of the non-Defaulting Banks, and participating
interests in any such newly issued, provided or increased Letter of Credit shall be allocated among non-Defaulting Banks in a manner
consistent with Section 2.03(b) (and Defaulting Banks shall not participate therein) and (ii) the Swing Line Bank shall
not be required to advance any Swing Line Loan, unless it is satisfied that the related exposure will be 100% covered by the Revolving
Loan Commitments of the non-Defaulting Banks;

 

(G)         any
amount payable to such Defaulting Bank hereunder (whether on account of principal, interest, fees or otherwise) shall, in lieu
of being distributed to such Defaulting Bank, be retained by the Agent in a segregated account and subject to any applicable Requirements
of Law, and be applied:

 

(1)         first,
to the payment of any amounts owing by such Defaulting Bank to the Agent hereunder,

 

    	44

    	 

    

 

(2)         second,
to the payment pro rata of any amounts owing by such Defaulting Bank to the Issuing Banks and/or the Swing Line Bank hereunder,

 

(3)         third,
to the extent not Cash Collateralized, to the payment pro rata to (x) the Cash Collateralization, as set forth in this Section
4.12, of any participating interest in any Letter of Credit in respect of which such Defaulting Bank has failed to fund Cash
Collateral for its portion thereof as required by this Agreement, pro rata among such Letters of Credit, as determined by the Agent,
and (y) the repayment of any uncovered portion of any outstanding Swing Line Loans,

 

(4)         fourth,
as the Company may request, so long as no Default or Event of Default shall have occurred and be continuing, to the funding of
any portion of any Loan which such Defaulting Bank has failed to fund,

 

(5)         fifth,
if so determined by the Agent, the Issuing Banks or the Swing Line Bank, held in such account as Cash Collateral for future funding
obligations of such Defaulting Bank under this Agreement,

 

(6)         sixth,
to the payment of any amounts owing to the non-Defaulting Banks as a result of any judgment of a court of competent jurisdiction
obtained by any non-Defaulting Bank against such Defaulting Bank as a result of such Defaulting Bank’s breach of its obligations
under this Agreement,

 

(7)         seventh,
so long as no Default or Event of Default shall have occurred and be continuing, to the payment of any amounts owing to the Company
as a result of any judgment of a court of competent jurisdiction obtained by the Company against such Defaulting Bank as a result
of such Defaulting Bank’s breach of its obligations under this Agreement, and

 

(8)         eighth,
to such Defaulting Bank or as otherwise directed by a court of competent jurisdiction;

 

provided, however, that if
such payment is (x) a payment of the principal amount of any Loans or unreimbursed amount with respect to drawings or demands for
payment under Letters of Credit which such Defaulting Bank has not funded in accordance with its participation obligations hereunder
and (y) made at a time when the conditions set forth in Section 6.02 are satisfied, such payment shall be applied solely
to prepay the Loans of, and unreimbursed amounts with respect to drawings and demands under Letters of Credit owed to, all non-Defaulting
Banks pro rata prior to being applied to the prepayment of any Loans, or unreimbursed amounts with respect to such drawings owed
to, such Defaulting Bank.

 

(d)          Each
Defaulting Bank shall indemnify the Company, the Agent, the Issuing Banks, the Swing Line Bank and each non-Defaulting Bank from
and against any and all loss, damage or expenses, including but not limited to reasonable attorneys’ fees and, in the case
of the Agent, the Issuing Banks, the Swing Line Bank or any non-Defaulting Bank, funds (if any) advanced by the Agent, the Issuing
Banks, the Swing Line Bank or by any non-Defaulting Bank, on account of such Defaulting Bank’s failure to timely fund its
applicable Revolving Loan Commitment Percentage of a Loan or to otherwise perform its obligations under the Basic Documents.

 

(e)          In
the event that the Agent, the Company, the Issuing Banks and the Swing Line Bank agree that a Defaulting Bank has adequately remedied
all matters that caused such Bank to be a Defaulting Bank, then the Fronting Exposure of the Banks shall be readjusted to reflect
the inclusion of such Bank’s Revolving Loan Commitment and on such date such Bank shall purchase at par such of the Loans,
Revolving Loan Commitments and/or Letter of Credit Liabilities, or participations therein of the other Banks as the Agent shall
determine may be necessary in order for such Bank to hold such Loans, Revolving Loan Commitments and/or Loan Obligations in accordance
with its Revolving Loan Commitment Percentage thereof.

 

    	45

    	 

    

 

(f)          At
any time during a Defaulting Bank Period, the Company may (so long as such Defaulting Bank Period remains in effect), require such
Defaulting Bank to assign all right, title and interest that it may have in, and its participations in, all Loans, Letters of Credit
and any other Loan Obligations to another Bank (if another Bank will consent to purchase such right, title and interest and participations)
or another Person in accordance with and subject to the terms of Section 11.06 of
this Agreement, if such Person can be found by the Company, for a purchase price equal to 100% of the principal amount of such
Obligations plus the amount of any interest and fees accrued and owing to
such Defaulting Bank as of the date of such assignment plus any amount payable under this Agreement (including, without limitation,
under Section 5.04).

 

(g)          So
long as any Bank is a Defaulting Bank, Hedging Obligations owing to such Bank or its Affiliates arising from transactions entered
into after it becomes a Defaulting Bank, shall be excluded from “Hedging Obligations” for the purpose of Section 4.08.

 

Section
5.

Yield Protection, Etc.

 

5.01        Additional
Costs. 

 

(a)          If
the adoption of or any change in any Requirement of Law (including, without limitation, any Regulatory Change) or in the interpretation
or application thereof or compliance by any Bank with any request or directive (whether or not having the force of law) from any
central bank or other Governmental Authority made subsequent to the date hereof (including, without limitation, any Regulatory
Change):

 

(A)         does
or shall subject any Bank to any Tax of any kind whatsoever (other than Indemnified Taxes or Excluded Taxes) with respect to this
Agreement, any Note, any Eurodollar Loan made by it, any Commitment, any Letter of Credit issued or participated in by it or any
participation by it in any Swing Line Loan, or its deposits, reserves, other liabilities or capital attributable thereto;

 

(B)         does
or shall impose, modify or hold applicable any reserve, special deposit, compulsory loan, insurance charge or similar requirement
against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by
or participated in by, or any other acquisition of funds by, any office of such Bank which is not otherwise included in the determination
of the Eurodollar Base Rate; or

 

(C)         does
or shall impose on such Bank any other condition, cost or expense;

 

and the result of any of the foregoing is to increase the cost
to such Bank of making, Converting into, Continuing or maintaining Eurodollar Loans or maintaining its obligation to make such
Loans or issuing, providing and maintaining Letters of Credit or holding an interest in the Issuing Bank’s obligations thereunder
or of holding a participation interest or maintaining its obligation to hold such participation interests in Swing Line Loans,
or to reduce any amount receivable hereunder (whether of principal, interest or any other amount), then, in any such case, the
Company shall promptly, after receiving notice and the applicable certificate as specified in Section 5.01(d), pay such
Bank such additional amount or amounts as will compensate such Bank for such increased cost or reduced amount receivable.

 

    	46

    	 

    

 

(b)          Intentionally
omitted.

 

(c)          If
any Bank shall have determined that the adoption of or any change in any Requirement of Law regarding capital adequacy or liquidity
requirements (including, without limitation, any Regulatory Change) or in the interpretation or application thereof or compliance
by such Bank, its Applicable Lending Office or any Person controlling such Bank with any Requirement of Law regarding capital adequacy
(including, without limitation, any Regulatory Change) or with any request or directive regarding capital adequacy or liquidity
requirements (whether or not having the force of law) from any Governmental Authority made subsequent to the date hereof shall
have the effect of reducing the rate of return on such Bank’s or such Person’s capital as a consequence of this Agreement,
its obligations or Commitments hereunder or under Letters of Credit (issued by it or in which it has a participation interest)
or in respect of its Loans or participations in Swing Line Loans, to a level below that which such Bank or such Person would have
achieved but for such adoption, change or compliance (taking into consideration such Bank’s or such Person’s policies
with respect to capital adequacy), then from time to time, the Company shall promptly after receiving notice and the applicable
certificate as specified in Section 5.01(d), pay to such Bank or such other Person such additional amount or amounts as
will compensate such Bank for such reduction. In determining such amount or amounts, any Bank may use any method of averaging and
attribution as it shall deem applicable.

 

(d)          If
any Bank becomes entitled to claim any additional amounts pursuant to this Section 5.01, it shall promptly notify the Company
(with a copy to the Agent) of the event by reason of which it has become so entitled. Failure or delay on the part of any Bank
to demand compensation pursuant to this Section 5.01 shall not constitute a waiver of such Bank’s right to demand such compensation;
provided that the Company shall not be required to compensate such Bank pursuant to this Section 5.01 for any increased
costs or reductions incurred more than 270 days prior to the date that such Bank gives notice to the Company of the applicable
Requirement of Law (plus any additional period of retroactive effect of the applicable Requirement of Law) giving rise to such
increased costs or reductions and of the Bank’s intention to claim compensation pursuant to this Section 5.01. A certificate
as to any additional amounts payable pursuant to this Section 5.01 submitted by such Bank to the Company (with a copy to
the Agent) shall be conclusive in the absence of manifest error. The agreements in this Section 5.01 shall survive the termination
of this Agreement and the payment of the Loans, Reimbursement Obligations and all other amounts payable hereunder.

 

(e)          The
Agent and each Bank hereby agrees that, upon the occurrence of any circumstances entitling the Agent or such Bank to additional
amounts pursuant to this Section 5.01, the Agent or such Bank shall use reasonable efforts (consistent with its internal
policy and legal and regulatory restrictions), at the sole expense of the Company, to designate a different Applicable Lending
Office if the making of such a change would avoid the need for, or materially reduce the amount of, any such additional amounts
that may thereafter accrue and would not, in the sole judgment of the Agent or such Bank, be otherwise disadvantageous to the Agent
or such Bank in any respect.

 

(f)          If
any Bank demands compensation under this Section 5.01, or if the Company is required to pay any additional amount to any Bank or
any Governmental Authority for the account of any Bank pursuant to this Section 5.01, the Company may require such Bank to assign
all right, title and interest that it may have in, and its participations in, all Loans, Letters of Credit and any other Obligations
of the Company under this Agreement and the Basic Documents to another Bank (if another Bank will consent to purchase such right,
title and interest and participations) or another Person in accordance with and subject to the terms of Section 11.06 of this Agreement,
for a purchase price equal to 100% of the principal amount of such Obligations plus the amount of any interest and
fees accrued and owing to such Bank as of the date of such assignment plus any other amounts payable under this Agreement (including
under this Section 5.01 and Section 5.04 hereof).

 

    	47

    	 

    

 

5.02        Inability
to Determine Interest Rate.

 

If prior to the first day of any Interest Period:

 

(a)          (i)          the Agent shall have determined (which determination shall be conclusive and binding upon the Company) that, by reason of circumstances
affecting the relevant market, adequate and reasonable means do not exist for ascertaining the relevant Eurodollar Rate for such
Interest Period, or

 

(i)          the
Agent shall have received notice from the Required Banks that the relevant Eurodollar Rate determined or to be determined for such
Interest Period will not adequately and fairly reflect the cost to such Banks (as conclusively certified by such Banks) of making
or maintaining their affected Loans during such Interest Period,

 

then the Agent shall give telecopy or telephonic notice thereof
to the Company and the relevant Banks as soon as practicable thereafter.

 

(b)          If
such notice is given under clause (a)(i) or (ii) above with respect to the Eurodollar Rate applicable to Loans, (x) any such Eurodollar
Loan requested to be made on the first day of such Interest Period shall be made as a Base Rate Loan, (y) any Base Rate
Loans that were to have been Converted on the first day of such Interest Period to Eurodollar Loans shall continue as Base Rate
Loans and (z) any outstanding Eurodollar Loans shall be Converted to Base Rate Loans on the first day of such Interest Period.
Until such notice has been withdrawn by the Agent, no further Eurodollar Loans shall be made or Continued as such, nor shall the
Company have the right to Convert Base Rate Loans to Eurodollar Loans.

 

(c)          The
Agent shall withdraw (i) any such notice pursuant to subsection (a)(i) of this Section 5.02 above if the Agent determines
that the relevant circumstances have ceased to exist and (ii) any such notice pursuant to subsection (a)(ii) of this Section
5.02 upon receipt of notice from the Required Banks the relevant circumstances described in such subsection (a)(ii) have ceased
to exist.

 

5.03        Illegality.
Notwithstanding any other provision of this Agreement, in the event that it becomes unlawful for any Bank or its Applicable Lending
Office to honor its obligation to make or maintain Eurodollar Loans hereunder, then such Bank shall promptly notify the Company
(with a copy to the Agent) thereof and such Bank’s obligation to make or Continue, or to Convert Loans of any other Type
into, Eurodollar Loans shall be suspended until such time as the Bank may again make and maintain Eurodollar Loans and such Bank’s
Loans then outstanding as Eurodollar Loans, if any, shall be Converted automatically to Base Rate Loans on the respective last
days of the then current Interest Periods with respect to such Loans or within such earlier period as required by Law.

 

    	48

    	 

    

 

5.04        Break
Funding Compensation. The Company shall pay to the Agent for account of each Bank, upon the request of such Bank (through the
Agent), such amount or amounts as shall be sufficient (in the reasonable opinion of such Bank) to compensate it for any loss, cost
or expense (including, without limitation, any loss or expense incurred by reason of the liquidation or reemployment of deposits
or other funds acquired by such Bank) that such Bank determines is attributable to (a) any failure by the Company in making a borrowing
of, Conversion into or Continuation of Eurodollar Loans after the Company has given a notice requesting the same in accordance
with the provisions of this Agreement, (b) any failure by the Company in making any prepayment after the Company has given a notice
thereof in accordance with the provisions of this Agreement or (c) the making of a payment or prepayment of Eurodollar Loans (whether
optional or mandatory, whether from proceeds of Collateral or otherwise) on a day which is not the last day of an Interest Period
with respect thereto (including, without limitation, in connection with Section 2.05(d) hereof). Without limiting the effect of
the preceding sentence, such compensation shall include, with respect to Eurodollar Loans, an amount equal to the excess, if any,
of (i) the amount of interest that otherwise would have accrued on the principal amount so paid, prepaid, Converted or not
borrowed, prepaid or Converted for the period from the date of such payment, prepayment, Conversion or failure to borrow, prepay
or Convert to the last day of the then current Interest Period for such Loan (or, in the case of a failure to borrow, prepay or
Convert, the Interest Period for such Loan that would have commenced on the date specified for such borrowing) at the applicable
rate of interest for such Loan provided for herein over (ii) the amount of interest that otherwise would have accrued
on such principal amount at a rate per annum equal to the interest component of the amount such Bank would have bid in the London
interbank market for Dollar deposits of leading banks in amounts comparable to such principal amount and with maturities comparable
to such period (as reasonably determined by such Bank). A certificate as to any amounts payable pursuant to this Section submitted
to the Company by any Bank shall be presumptively correct in the absence of manifest error. This covenant shall survive the termination
of this Agreement and the payment of the Loans, Reimbursement Obligations and all other amounts payable hereunder.

 

5.05        Intentionally
omitted.

 

5.06        Taxes.

 

(a)          Payments
Free of Taxes. Any and all payments by or on account of any obligation of any Obligor under any Basic Document shall be made
free and clear of and without deduction or withholding for any Indemnified Taxes or Other Taxes, provided that if any Obligor shall
be required by applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then: (i) the sum
payable shall be increased as necessary so that after making all required deductions (including deductions applicable to additional
sums payable under this Section) the Agent, or Bank, as the case may be, receives an amount equal to the sum it would have received
had no such deductions been made; (ii) the applicable Obligor shall make such deductions; and (iii) the applicable Obligor shall
timely pay the full amount deducted to the relevant Governmental Authority in accordance with applicable Law.

 

(b)          Payment
of Other Taxes by the Company. Without limiting the provisions of paragraph (a) above, the Company shall timely pay any Other
Taxes to the relevant Governmental Authority in accordance with applicable Law or, at the option of the Agent, timely reimburse
it for the payment of Other Taxes.

 

(c)          Indemnification
by the Company. The Company shall indemnify the Agent and each Bank, within 10 days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) paid or payable by the Agent or such Bank, as the case may be, or required to be withheld or deducted
from a payment to the Agent or such Bank, as the case may be, and any penalties, interest and reasonable expenses arising therefrom
or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly or legally imposed or asserted by
the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Company by a
Bank (with a copy to the Agent), or by the Agent on its own behalf or on behalf of a Bank, shall be conclusive absent manifest
error.

 

    	49

    	 

    

 

(d)          Indemnification
by the Banks. Each Bank shall severally indemnify the Agent, within 10 days after demand therefor, for (i) any Indemnified
Taxes attributable to such Bank (but only to the extent that the Company has not already indemnified the Agent for such Indemnified
Taxes and without limiting the obligation of the Company to do so) and (ii) any Excluded Taxes attributable to such Bank, in each
case, that are payable or paid by the Agent in connection with any Basic Document, and any reasonable expenses arising therefrom
or with respect thereto, whether or not such Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority.
A certificate as to the amount of such payment or liability delivered to any Bank by the Agent shall be conclusive absent manifest
error. Each Bank hereby authorizes the Agent to set off and apply any and all amounts at any time owing to such Bank under any
Basic Document or otherwise payable by the Agent to the Bank from any other source against any amount due to the Agent under this
paragraph (d).

 

(e)          Evidence
of Payments. As soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Obligor to a Governmental
Authority, the Company shall deliver to the Agent the original or a certified copy of a receipt issued by such Governmental Authority
evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory
to the Agent.

 

(f)    
      Status of Banks. (i) Any Bank that is entitled to an exemption from or reduction
of withholding Tax with respect to payments made under any Basic Document shall deliver to the Company and the Agent, at the
time or times reasonably requested by the Company or the Agent, such properly completed and executed documentation reasonably
requested by the Company or the Agent as will permit such payments to be made without withholding or at a reduced rate of
withholding. In addition, any Bank, if reasonably requested by the Company or the Agent, shall deliver such other
documentation prescribed by applicable law or reasonably requested by the Company or the Agent as will enable the Company or
the Agent to determine whether or not such Bank is subject to backup withholding or information reporting requirements.
Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such
documentation (other than such documentation set forth in Section (f)(ii)(A), (ii)(B) and (ii)(D) below) shall not be
required if in the Bank’s reasonable judgment such completion, execution or submission would subject such Bank to any
material unreimbursed cost or expense or would materially prejudice the legal or commercial position of such Bank.

 

(ii)         Without
limiting the generality of the foregoing,

 

(A)         any
Bank that is a U.S. Person shall deliver to the Company and the Agent on or prior to the date on which such Bank becomes a Bank
under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Agent), executed originals
of IRS Form W-9 certifying that such Bank is exempt from U.S. federal backup withholding tax;

 

(B)         any
Foreign Bank shall, to the extent it is legally entitled to do so, deliver to the Company and the Agent (in such number of copies
as shall be requested by the recipient) on or prior to the date on which such Foreign Bank becomes a Bank under this Agreement
(and from time to time thereafter upon the reasonable request of the Company or the Agent), whichever of the following is applicable:

 

(i)          in
the case of a Foreign Bank claiming the benefits of an income tax treaty to which the United States is a party (x) with respect
to payments of interest under any Basic Document, executed originals of IRS Form W-8BEN establishing an exemption from, or reduction
of, U.S. federal withholding Tax pursuant to the “interest” article of such tax treaty and (y) with respect to any
other applicable payments under any Basic Document, IRS Form W-8BEN establishing an exemption from, or reduction of, U.S. federal
withholding Tax pursuant to the “business profits” or “other income” article of such tax treaty;

 

    	50

    	 

    

 

(ii)         executed
originals of IRS Form W-8ECI;

 

(iii)        in
the case of a Foreign Bank claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x)
a certificate to the effect that such Foreign Bank is not a “bank” within the meaning of Section 881(c)(3)(A) of the
Code, a “10 percent shareholder” of the Company within the meaning of Section 881(c)(3)(B) of the Code, or a “controlled
foreign corporation” described in Section 881(c)(3)(C) of the Code (in form and substance satisfactory to the Agent, a “U.S.
Tax Compliance Certificate”) and (y) executed originals of IRS Form W-8BEN; or

 

(iv)        to
the extent a Foreign Bank is not the beneficial owner, executed originals of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS
Form W-8BEN, a U.S. Tax Compliance Certificate, IRS Form W-9, and/or other certification documents from each beneficial owner,
as applicable; provided that if the Foreign Bank is a partnership and one or more direct or indirect partners of such Foreign
Bank are claiming the portfolio interest exemption, such Foreign Bank may provide a U.S. Tax Compliance Certificate on behalf of
each such direct and indirect partner;

 

(C)         Delivery
of Forms. Each Foreign Bank shall, to the extent it is legally entitled to do so, deliver to the Company and the Agent (in
such number of copies as shall be requested by the recipient) on or prior to the date on which such Foreign Bank becomes a Bank
under this Agreement (and from time to time thereafter upon the reasonable request of the Company or the Agent), executed originals
of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding
Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Company
or the Agent to determine the withholding or deduction required to be made; and

 

(D)         FATCA.
If a payment made to a Bank hereunder would be subject to United States Federal withholding tax imposed by FATCA if such Bank were
to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b)
of the Code, as applicable), such Bank shall deliver to the Company and the Agent, at the time or times prescribed by Law and at
such time or times reasonably requested by the Company or the Agent, such documentation prescribed by applicable Law (including
as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Company or
the Agent as may be necessary for the Company or the Agent to comply with its obligations under FATCA, to determine that such Bank
has complied with such Bank’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.
Solely for purposes of this clause (D), “FATCA” shall include any amendments made to FATCA after the date of this Agreement.
In addition, each Bank shall severally indemnify the Agent and Company for any Indemnified Tax attributable to such Bank or other
penalties related thereto imposed in connection with any “withholdable payment,” as defined in Section 1473 of the
Code, made to a Bank that is a Foreign Bank that has failed to comply with the reporting requirements or otherwise qualify for
an exemption under FATCA.

 

    	51

    	 

    

 

(g)          Each
Bank agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect,
it shall update such form or certification or promptly notify the Company and the Agent in writing of its legal inability to do
so.

 

(h)          Nothing
contained in this Section 5.06 shall require any Bank (or any of its permitted assigns or participants hereunder) or the
Agent to make available any of its tax returns or any other information that it deems to be confidential or proprietary.

 

(i)   
       If any Person determines, in its sole discretion exercised in good faith, that it
has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 5.06 (including by the
payment of additional amounts pursuant to this Section 5.06), it shall pay to the indemnifying party an amount equal to
such refund (but only to the extent of indemnity payments made under this Section with respect to the Taxes giving rise
to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other
than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the
written request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this
Section 5.06(i) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the
event that such indemnified party is required to repay such refund to such Governmental Authority or otherwise.
Notwithstanding anything to the contrary in this Section 5.06(i), in no event will the indemnified party be required to
pay any amount to an indemnifying party pursuant to this Section 5.06(i) the payment of which would place
the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax
subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the
indemnification payments or additional amounts with respect to such Tax had never been paid.

 

Section
6.

Conditions Precedent.

 

6.01        Obligations
to Extend Credit. The obligation of any Bank to make any extension of credit hereunder (whether by making a Loan or issuing
a Letter of Credit) is subject to the conditions precedent that the Agent has received the following documents, each of which shall
be reasonably satisfactory to the Agent (and to the extent specified below to each Bank) in form and substance on or before the
Closing Date:

 

(a)          Executed
Counterparts. From each party hereto either (i) a counterpart of this Agreement signed and delivered on behalf of such party
or (ii) written evidence (which may include telecopy or other electronic transmission of a signed signature page to this Agreement)
that such party has signed and delivered a counterpart of this Agreement.

 

(b)          Existing
Credit Agreement. Written evidence that RBS Citizens, National Association and JPMorgan Chase Bank, N.A. have been repaid (by
assignment or otherwise) all “Obligations” (under and defined in the Existing Credit Agreement) and that the “Credit
Exposure” (under and as defined in the Existing Credit Agreement) shall have been reduced to an amount not more than $150,000,000.

 

(c)          Intercreditor
Agreement. The Intercreditor Agreement duly executed by the Uncommitted Facility Agent.

 

    	52

    	 

    

 

(d)          Governing
Documents. Certified copies of the charter and by-laws (or equivalent documents) of each Obligor, and of all corporate authority
for each Obligor (including board of director resolutions, evidence of the incumbency of officers and signature specimens of officers)
with respect to the execution, delivery and performance of the Basic Documents and each other document to be delivered by each
Obligor from time to time in connection herewith and the extensions of credit hereunder (and the Agent and each Bank may conclusively
rely on such certificates until it receives notice in writing from the Company to the contrary).

 

(e)          Good
Standing. Evidence of the existence, good standing and authority to transact business for (i) the Company from the Secretary
of State of New Jersey, (ii) each Obligor from the Secretary of State of the jurisdiction of incorporation of such Obligor and
(iii) each Obligor from the Secretary of State of each other jurisdiction in which the failure of such Obligor to be in good standing
or to have the authority to transact business would result in a Material Adverse Effect.

 

(f)       
   Officer’s Certificate. A certificate of a senior officer of the Company, dated the Closing
Date, to the effect set forth in clauses (a), (b) and (c) of Section 6.02 hereof.

 

(g)          Borrowing
Base Certificate. A Borrowing Base Certificate as of May 31, 2014, prepared on a pro forma basis, showing that, after giving
effect to the initial Revolving Loans to be made and the initial Letters of Credit to be issued or outstanding on the Closing Date,
the Borrowing Base will not be less than the Credit Exposure.

 

(h)          Opinion
of Counsel to the Company. An opinion addressed to the Agent and each of the Banks and dated the Closing Date and covering
such matters as the Agent may reasonably request from such counsel to each Obligor.

 

(i)    
      Security Documents. Counterparts of the Subsidiary Guarantee executed by each
Domestic Subsidiary, counterparts of an amendment (in form and substance acceptable to the Agent) to the Share Pledge
Agreement and counterparts of the Security Agreement signed on behalf of the Obligors party thereto, together with the
following: 

 

(i)          certificates
representing all the outstanding Capital Securities of each Subsidiary owned by or on behalf of any Obligor as of the Closing Date
(except that certificates representing Capital Securities of any foreign Subsidiary may be limited to 65% of the outstanding equity
interest of such foreign Subsidiary), and stock powers and instruments of transfer, endorsed in blank, with respect to such stock
certificates;

 

(ii)         the
results of the search of the UCC (or equivalent) and tax Liens and judgment Liens made with respect to the Obligors and any predecessor
company identified pursuant to the Security Agreement in each jurisdiction (A) in which each Obligor and each predecessor company
is organized and (B) in respect of tax Liens and judgment Liens, where each Obligor and each predecessor company has its chief
executive office or has had its chief executive office within the last four months prior to the Closing Date; and copies of the
financing statements (or other documents) disclosed by such search and evidence that the Liens indicated by such financing statements
(or similar documents) are permitted by Section 8.06 or have been released or, simultaneously with the initial extensions of credit
hereunder, will be released;

 

(iii)        subject
to the terms of the Security Agreement, (A) such other executed documentation as the Agent may deem necessary to perfect and protect
its Liens, including intellectual property assignments for all intellectual property pledged as Collateral, subordination agreements
and control agreements with respect to all deposit, commodity and security account and (B) all other Collateral the possession
of which is necessary to perfect the Lien therein; and

 

    	53

    	 

    

 

(iv)        written
evidence that appropriate UCC financing statements necessary to protect the Liens under the Security Agreement have been recorded.

 

(j)  
        Insurance. Certificates of insurance summarizing the insurance
policies of the Obligors required by the Basic Documents and reflecting the Agent as additional insured under all liability
policies and as additional insured and loss payee with respect to all casualty policies covering Collateral and loss payee on
all credit insurance policies.

 

(k)          No
Material Adverse Effect. Evidence that no Material Adverse Effect has occurred since December 31, 2013, through the Closing
Date.

 

(l)       
   Fees and Expenses. Evidence that the Company has paid to the Agent and the Banks all reasonable and
documented costs, fees and expenses then due including such upfront and agency fees as the Company has agreed to pay to any
Bank or the Agent in connection herewith and the reasonable and documented fees and expenses of Emmet, Marvin & Martin,
LLP, counsel to the Agent, in connection with the negotiation, preparation, execution and delivery of this Agreement and the
other Basic Documents (to the extent that statements for such fees and expenses have been delivered to the Company).

 

(m)         Intentionally
omitted.

 

(n)          Request
to Honor Oral and Electronic Instructions. A completed request to honor oral and electronic instructions, executed by a senior
officer of the Company.

 

(o)          Other
Documents. Such other documents as the Agent or any Bank or their counsel may reasonably request.

 

The Agent shall notify the Company and
the Banks when all documents required to be delivered as a condition to the effectiveness of the obligations of the Banks have
been delivered and such notice shall be conclusive and binding.

 

6.02        Initial
and Subsequent Extensions of Credit. The obligation of any Bank to make any Loan, issue any Letter of Credit or otherwise extend
any credit to the Company upon the occasion of each borrowing, issuance or other extension of credit hereunder (including the initial
Loan, Letter of Credit or other extension of credit) is subject to the further conditions precedent that, both immediately prior
to the making of such Loan, issuance of such Letter of Credit or other extension of credit and also after giving effect thereto
and to the intended use thereof: (a) no Default exists; (b) the representations and warranties made by the Company in
Section 7 hereof, and by each Obligor in each of the other Basic Documents to which it is a party, shall be true and correct
in all material respects on and as of the date of the making of such Loan, issuance of such Letter of Credit or other extension
of credit (except to the extent that such representations and warranties specifically refer to an earlier date, in which case they
shall be true and correct as of such earlier date) with the same force and effect as if made on and as of such date (or, if any
such representation or warranty is expressly stated to have been made as of a specific date, as of such specific date); and (c) the
aggregate outstanding principal amount of the Credit Exposure shall not exceed the lesser of (x) the Borrowing Base and (y) the
Revolving Loan Commitment. Each Borrowing Request or request for the issuance of a Letter of Credit by the Company hereunder shall
constitute a certification by the Company to the effect set forth in the preceding sentence (both as of the date of such notice
or request and, unless the Company otherwise notifies the Agent prior to the date of such borrowing or issuance as of the date
of such borrowing or issuance).

 

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Section
7.

Representations and Warranties.

 

The Company represents
and warrants to the Agent and the Banks that:

 

7.01         Corporate
Existence. Each Obligor: (a) is a corporation, limited liability company, partnership or other entity duly organized, validly
existing and in good standing under the Laws of the jurisdiction of its organization; (b) has all requisite corporate or other
power, and has all material governmental licenses, authorizations, consents and approvals necessary to own its assets and carry
on its business as now being or as proposed to be conducted; and (c) is qualified to do business and is in good standing in
all jurisdictions in which the nature of the business conducted by it makes such qualification necessary and where failure so to
qualify could (either individually or in the aggregate) have a Material Adverse Effect.

 

7.02         Financial
Condition. The Company has heretofore furnished to each of the Banks the balance sheet of the Company as at December 31, 2013
and the related statements of operation, change in stockholder’s equity and cash flow for the fiscal year ended on said date,
with the opinion thereon of EisnerAmper LLP. Such financial statements fairly present the financial condition of the Company as
at said dates and the results of its operations for the fiscal year ended on said date, all in accordance with GAAP applied on
a consistent basis. The Company does not have on the date hereof any material contingent liabilities, liabilities for taxes, unusual
forward or long-term commitments or unrealized or anticipated losses from any unfavorable commitments, except as referred to or
reflected or provided for in said balance sheets as at said date. Since December 31, 2013, there has been no material adverse change
in the financial condition, operations, business or prospects of the Company and its Subsidiaries on a consolidated basis from
that set forth in said financial statements as at said date.

 

7.03         Litigation.
There are no legal or arbitral proceedings, or any proceedings by or before any governmental or regulatory authority or agency,
now pending or (to the knowledge of the Company) threatened in writing against the Company or any other Obligor that, if adversely
determined could (either individually or in the aggregate) have a Material Adverse Effect.

 

7.04         No
Breach. None of the execution and delivery of this Agreement and the other Basic Documents, the consummation of the transactions
herein and therein contemplated or compliance with the terms and provisions hereof and thereof will conflict with or result in
a breach of, or require any consent under, the charter or by-laws (or similar governing documents) of any Obligor, or any applicable
Law or regulation, or any order, writ, injunction or decree of any court or Governmental Authority or agency, or any agreement
or instrument to which any Obligor is a party or by which any of them or any of their Property is bound or to which any of them
is subject, or constitute a default under any such agreement or instrument, or (except for the Liens created pursuant to the Security
Documents) result in the creation or imposition of any Lien upon any Property of any Obligor pursuant to the terms of any such
agreement or instrument.

 

7.05         Action.
Each Obligor has all necessary corporate power, authority and legal right to execute, deliver and perform its obligations under
each of the Basic Documents to which it is a party; the execution, delivery and performance by each Obligor of each of the Basic
Documents to which it is a party have been duly authorized by all necessary corporate action on its part (including any required
shareholder approvals); and this Agreement, the Notes (if any), the Subsidiary Guarantee and each other Basic Document has been
duly and validly executed and delivered by each Obligor party thereto and constitutes its legal, valid and binding obligation,
enforceable against each applicable Obligor in accordance with its terms.

 

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7.06        Approvals.
No authorizations, approvals or consents of, and no filings or registrations with, any governmental or regulatory authority or
agency, or any securities exchange, are necessary for the execution, delivery or performance by any Obligor of the Basic Documents
to which it is a party or for the legality, validity or enforceability hereof or thereof, except for filings and recordings in
respect of the Liens created pursuant to the Security Documents.

 

7.07        Use
of Credit. The Company is not engaged principally, or as one of its important activities, in the business of extending credit
for the purpose, whether immediate, incidental or ultimate, of buying or carrying Margin Stock, and no part of the proceeds of
any extension of credit hereunder will be used to buy or carry any Margin Stock.

 

7.08        ERISA.
Each “employee benefit plan”, as defined under Section 3(3) of ERISA, established or maintained by the Company has
been operated in material compliance with ERISA and the Code. At no time during the preceding five years has either the Company
or any ERISA Affiliate (i) established or maintained a Plan, or (ii) had any obligations to make contributions to a Multiemployer
Plan.

 

7.09        Taxes.
The Company has filed, or has valid extensions for the filing of, all Federal income tax returns and all other material tax returns
that are required to be filed by it and have paid all taxes due pursuant to such returns or pursuant to any assessment received
by the Company. The charges, accruals and reserves on the books of the Company in respect of taxes and other governmental charges
are, in the opinion of the Company, adequate. The Company has not given or been requested to give a waiver of the statute of limitations
relating to the payment of Federal, state, local and foreign taxes or other impositions.

 

7.10        Indebtedness
and Investments.

 

(a)          Indebtedness.
Schedule I hereto is a complete and correct list, as of the date of this Agreement, of each credit agreement, loan agreement, indenture,
purchase agreement, guarantee, letter of credit or other arrangement providing for or otherwise relating to any Indebtedness or
any extension of credit (or commitment for any extension of credit) to, or guarantee by, the Company in each case with an aggregate
principal or face amount in excess of $100,000, and any Subsidiary of the Company, and the aggregate principal or face amount outstanding
or that may be outstanding under each such arrangement is correctly described in said Schedule I.

 

(b)          Investments.
Schedule II hereto is a complete and correct list, as of the date of this Agreement, of all Investments held by the Company and
each Subsidiary in any Person, in each case with an aggregate principal or face amount in excess of $100,000, and, for each such
Investment, the nature of such Investment.

 

7.11        True
and Complete Disclosure. The information, reports, financial statements, exhibits and schedules furnished in writing by or
on behalf of any Obligor to the Agent or any Bank in connection with the negotiation, preparation or delivery of this Agreement
and the other Basic Documents or included herein or therein or delivered pursuant hereto or thereto, when taken as a whole do not
contain any untrue statement of material fact or omit to state any material fact necessary to make the statements herein or therein,
in light of the circumstances under which they were made, not misleading. All written information furnished after the date hereof
by the Company to the Agent and the Banks in connection with this Agreement and the other Basic Documents and the transactions
contemplated hereby and thereby will be true, complete and accurate in every material respect, or (in the case of projections)
based on reasonable estimates, on the date as of which such information is stated or certified.

 

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7.12         Subsidiaries.
Set forth on Schedule III is a complete and correct list of all of the Subsidiaries of the Company as of the date hereof, together
with, for each such Subsidiary: (a) the jurisdiction of organization of such Subsidiary; (b) each Person holding Capital Securities
in such Subsidiary; (b) the authorized, issued and outstanding Capital Securities issued by such Subsidiary; (c) the Capital Securities
held by each such Person; and (d) the percentage of ownership of such Subsidiary represented by such Capital Securities. Each of
the Company and the Subsidiaries owns, free and clear of Liens (other than Liens created pursuant to the Security Documents), and
has the unencumbered right to vote, all outstanding Capital Securities in each Person shown to be held by it on Schedule III and
all of the issued and outstanding Capital Securities of each such Person organized as a corporation or limited liability company
is validly issued, fully paid and nonassessable. As of the date hereof: (x) there are no outstanding equity rights with respect
to any Subsidiary and (y) there are no outstanding obligations of any Subsidiary to repurchase, redeem, or otherwise acquire any
Capital Securities or other equity rights of any Subsidiary nor are there any outstanding obligations of any Subsidiary to make
payments to any Person, such as “phantom stock” payments, where the amount thereof is calculated with reference to
the fair market value or equity value of any Subsidiary.

 

7.13         Property.
The Company and each of its Subsidiaries has good title to, or valid leasehold interests in, all its real and personal property
material to its business, subject only to Liens permitted by Section 8.06 and except for minor defects in title that do not interfere
with its ability to conduct its business as currently conducted or to utilize such properties for their intended purposes. The
Company and each of its Subsidiaries owns, or is licensed to use, all trademarks, tradenames, copyrights, patents and other intellectual
property material to its business, and the use thereof by the Company and the Subsidiaries does not infringe upon the rights of
any other Person, except for any such infringements that, individually or in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect. To the knowledge of the Company, no claim has been asserted nor is pending by any Person challenging
or questioning the use of any such trademarks, tradenames, copyrights, patents and other intellectual property or the validity
or effectiveness of any such trademarks, tradenames, copyrights, patents and other intellectual property that, if adversely determined
could (either individually or in the aggregate) have a Material Adverse Effect.

 

7.14         Compliance
with Laws and Agreements. The Company and each of its Subsidiaries are each in compliance with all Requirements of Law, regulations
and orders of any Governmental Authority applicable to it or its property and all indentures, agreements and other documents binding
upon it or its property, except where the failure to do so, individually or in the aggregate, could not reasonably be expected
to result in a Material Adverse Effect.

 

7.15         Investment
Company Status. Neither the Company nor any of its Subsidiaries is an “investment company” as defined in, or subject
to regulation under, the Investment Company Act of 1940 (as amended).

 

7.16         OFAC
Money Laundering Representations. No Obligor nor any of its Affiliates is in violation of any Laws relating to sanctions, terrorism
or money laundering (“Anti-Terrorism Laws”), including regulations administered by the United States Treasury
Department’s Office of Foreign Asset Control (“OFAC”) and the Executive Order No. 13224 on Terrorist Financing,
effective September 24, 2001 (the “Executive Order”), and the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56. No Obligor nor any of its Affiliates
or their respective brokers or other agents acting or benefiting in any capacity in connection with the Loans or Letters of Credit,
is any of the following (each such Person, a “Sanctioned Person”):

 

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(a)          a
Person or country that is listed in the annex to, or is otherwise subject in the prohibitions contained in, the Executive Order
or the OFAC regulations or that is subject to sanction by the U.S. State Department or the European Union;

 

(b)          a
Person owned or controlled by, or acting for or on the behalf of, any Person that is listed in the annex to, or is otherwise subject
to the prohibitions contained in, the Executive Order or the OFAC regulations or other Anti-Terrorism Laws;

 

(c)          a
Person with which the Agent or any Bank is prohibited from dealing or otherwise engaging in any transaction by any Anti-Terrorism
Law;

 

(d)          a
Person that commits, threatens or conspires to commit or supports “terrorism” as defined in the Executive Order or
the OFAC regulations;

 

(e)          a
Person that is (i) named on the most current list of “Specially Designated Nationals and Blocked Persons” published
by OFAC at its official website or any replacement website or other replacement official publication list or (ii) similarly designated
in any comparable list published by the United Nations or any Governmental Authority of the European Union, the Netherlands, the
United Kingdom or the French Republic; or

 

(f)        
  a Person located, organized or resident in a country or territory that is, or whose government is, the subject of
sanctions including, without limitation, Cuba, Iran, North Korea, Sudan and Syria.

 

No Obligor nor any of its brokers or other
agents acting in any capacity in connection with the Loans or Letters of Credit (x) conducts any business or engages in making
or receiving any contribution of funds, goods or services to or for the benefit of any Sanctioned Person, (y) deals in, or otherwise
engages in any transaction relating to, any property or interests in property blocked pursuant to the Executive Order or the OFAC
regulations, or (z) 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.

 

No part of the proceeds
of the Loans or Letters of Credit will be used, directly or indirectly, for any payments to any Sanctioned Person, governmental
official or employee, political party, official of a political party, candidate for political office, or anyone else acting in
an official capacity, (x) in order to obtain, retain or direct business or obtain any improper advantage, in violation of OFAC,
Anti-Terrorism Laws, regulations of the European Union or the United States Foreign Corrupt Practices Act of 1977, as amended or
(y) which could result in the imposition of sanctions against any Person (including any Bank).

 

7.17        Insurance.
The Company and each of its Subsidiaries maintain with financially sound and reputable insurers, insurance with respect to its
properties and business against such casualties and contingencies and in such amounts as are usually carried by businesses engaged
in similar activities as the Company and such Subsidiaries and located in similar geographic areas in which the Company and such
Subsidiaries operate.

 

7.18        Solvency.
On the Closing Date and immediately following the making of each Loan made, and issuance of each Letter of Credit issued, on the
Closing Date and after giving effect to the application of the proceeds of such Loans and the issuance of such Letter of Credit:
(a) the fair value of the assets of each Obligor, at a fair valuation, will exceed its debts and liabilities, subordinated,
contingent or otherwise; (b) the present fair saleable value of the property of each Obligor will be greater than the amount
that will be required to pay the probable liability of its debts and other liabilities, subordinated, contingent or otherwise,
as such debts and other liabilities become absolute and matured; (c) each Obligor will be able to pay its debts and liabilities,
subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured; and (d) each Obligor will
not have unreasonably small capital with which to conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted following the Closing Date. As used in this Section, the term “fair value” means the
amount at which the applicable assets would change hands between a willing buyer and a willing seller within a reasonable time,
each having reasonable knowledge of the relevant facts, neither being under any compulsion to act, with equity to both and “present
fair saleable value” means the amount that may be realized if the applicable company’s aggregate assets are sold with
reasonable promptness in an arm’s length transaction under present conditions for the sale of a comparable business enterprises.

 

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7.19        Intentionally
omitted.

 

7.20        Security
Documents. The provisions of each Security Document are effective to create in favor of the Agent for the ratable benefit of
the Secured Parties and the Agent a legal, valid and enforceable Lien in all right, title and interest of the applicable Obligor
in the Collateral.

 

7.21        Environmental
Matters.

 

(a)          The
facilities and Properties owned or operated by the Company or any of its Subsidiaries (the “Relevant Properties”)
do not contain any Materials of Environmental Concern in amounts or concentrations which (i) constitute or constituted a material
violation of or (ii) could reasonably be expected to give rise to a material liability under, any Environmental Law.

 

(b)          The
Company, the Relevant Properties and all operations of the Company at the Relevant Properties are in material compliance, and have,
for the duration of their ownership or operation by the Company and its Subsidiaries, been in material compliance with all applicable
Environmental Laws, and there is no contamination at, under or about the Relevant Properties. All Environmental Permits necessary
in connection with the operations of the Company and its Subsidiaries have been obtained and are in full force and effect except
for those Environmental Permits for which the failure to obtain could not reasonably be expected to result in a material obligation
under Environmental Laws.

 

(c)          Neither
the Company nor any of its Subsidiaries have received any written notice of violation, alleged violation, non-compliance, liability
or potential liability regarding liability under or compliance with Environmental Laws with regard to any of the Relevant Properties
or its operations, except for matters that have been resolved.

 

(d)          Materials
of Environmental Concern have not been transported or disposed of from the Relevant Properties by or on behalf of the Company or
its Subsidiaries in violation of, or to the Company’s knowledge, in a manner or to a location which could give rise to liability
under, any Environmental Law, nor have any Materials of Environmental Concern been generated, treated, stored or disposed of at,
on or under any of the Relevant Properties in violation of, or in a manner that could give rise to liability under, any applicable
Environmental Law.

 

(e)          No
judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Company, threatened in writing,
under any Environmental Law to which the Company or its Subsidiaries are or to the knowledge of the Company will be named as a
party with respect to the Relevant Properties or the operations of the Company or its Subsidiaries, nor are there any consent decrees,
consent orders, administrative orders or other orders, outstanding under any Environmental Law with respect to the Relevant Properties
or the operations of the company or its Subsidiaries.

 

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(f)        
  The representations and warranties under this Section 7.21 are the exclusive representations and warranties of
the Company regarding Environmental Laws or Materials of Environmental Concern.

 

Section
8.

Covenants of the Company.

 

The Company covenants
and agrees with the Banks and the Agent that, so long as any Commitment, Loan or Letter of Credit Liability is outstanding and
until payment in full of all Loan Obligations (other than any contingent obligations for which no claim has been made or asserted):

 

8.01        Financial
Statements, Etc. The Company shall deliver to each of the Banks:

 

(a)          Quarterly
Financial Statements. as soon as available and in any event within 45 days after the end of each of the first three quarterly
fiscal periods of each fiscal year of the Company, the following: (i) statements of operation, change in stockholder’s
equity and cash flow of the Company for such period and for the period from the beginning of the respective fiscal year to the
end of such period prepared on a consolidated basis, (ii) the related consolidated balance sheet of the Company as at the
end of such period, (iii) statements of operation of the Company for such period and for the period from the beginning of
the respective fiscal year to the end of such period prepared on a consolidating basis, and (iv) the related consolidating
balance sheet of the Company as at the end of such period, all accompanied by a certificate of a senior financial officer of the
Company, which certificate shall state that said financial statements fairly present the financial condition and results of operations
of the Company, in each case in accordance with GAAP, as at the end of, and for, such period (subject to normal year-end audit
adjustments);

 

(b)          Annual
Financial Statements. as soon as available and in any event within 90 days after the end of each fiscal year of the Company
the following: (i) statements of operation, change in stockholder’s equity and cash flow of the Company for such fiscal
year and the related balance sheet as at the end of such fiscal year prepared on a consolidated basis, and accompanied by an unqualified
opinion thereon of independent certified public accountants acceptable to the Required Banks, which opinion shall state that said
audited financial statements fairly present the financial condition and results of operations of the Company as at the end of,
and for, such fiscal year in accordance with GAAP, (ii) statements of operation of the Company for such fiscal year prepared
on a consolidating basis, and (iii) the related consolidating balance sheet of the Company as at the end of such fiscal year,
all accompanied by a certificate of a senior financial officer of the Company, which certificate shall state that said consolidating
financial statements fairly present the financial condition and results of operations of the Company, in each case in accordance
with GAAP, as at the end of, and for, such period;

 

(c)          ERISA.
Neither the Company nor any ERISA Affiliate shall (i) establish, maintain, or become obligated to contribute to a Plan, or (ii)
become obligated to make contributions to a Multiemployer Plan, except with the written consent of the Required Banks which consent
shall not be unreasonably withheld.

 

(d)          Borrowing
Base Certificate. as soon as available and in any event within 10 Business Days after:

 

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(i)          the
end of each calendar month,

 

(ii)         the
15th day of each calendar month, and

 

(iii)        any
other accounting period for which any Bank reasonably requests a Borrowing Base Certificate,

 

a Borrowing Base Certificate as at the
end of such calendar month in respect of clause (i) above, the 15th day of such calendar month in respect of clause (ii) above,
and the last day of such accounting period in respect of clause (iii) above, together with reports, as of the last day of such
accounting period, setting forth the following: (A) the aging of the Receivables, specifying both the names of the respective account
debtors and the period of time each such account has been past due, (B) a list of the Eligible Receivables and Australian Receivables,
(C) a list of Tier I Eligible Receivables and Tier II Eligible Receivables showing insurance limits and aging, (D) if the Net Liquidating
Value of Eligible Brokerage Accounts is included in the Borrowing Base, then such information as the Agent may request to support
the value reported thereunder, (E) the amount and value of all Eligible Inventory, Eligible Unsold Inventory and Eligible
Inventory Ordered under L/C, in each case included in the Borrowing Base, by location and lot number, and (F) such other information
as the Agent may reasonably request.

 

Notwithstanding the foregoing and anything
contained in this Agreement to the contrary, at any time and from time to time during the period between required deliveries of
Borrowing Base Certificates, the Borrower may deliver an Interim Borrowing Base Certificate to the Agent, and, subject to the terms
of the Intercreditor Agreement and Section 8.27 hereof, the Borrowing Base as calculated therein shall for all purposes be the
Borrowing Base (as reduced or increased after giving effect to any reallocation pursuant to Section 2.3 of the Intercreditor Agreement),
and the Interim Borrowing Base Certificate shall for all purposes constitute the then applicable Borrowing Base Certificate until
the next scheduled Borrowing Base Certificate or Interim Borrowing Base Certificate is delivered, provided, that contemporaneously
with the delivery of any Interim Borrowing Base Certificate, the Company shall also deliver an Interim Borrowing Base Certificate
(as defined in the Uncommitted Credit Agreement) under the Uncommitted Credit Agreement.

 

(e)          Collateral
Audit. from time to time at the request of the Agent (but, so long as no Default is continuing, no more than once in any fiscal
year), a report as of the end of any fiscal quarter, in form and substance satisfactory to the Required Banks, of an independent
collateral auditor satisfactory to the Required Banks (which may be, or be affiliated with, any of the Banks):

 

(i)          with
respect to the Receivables and Inventory components included in the Borrowing Base as at the end of such fiscal quarter which report
shall indicate that, based upon a review by such auditors of the Receivables (including verification with respect to the amount,
aging, identity and credit of the respective account debtors and the billing practices of the Company) and Inventory (including
verification as to the value, location and respective types), the information set forth in the Borrowing Base Certificate delivered
by the Company as at the end of such fiscal quarter is accurate and complete in all material respects,

 

(ii)         with
respect to the insurance policy or policies covering any of the Receivables or other Collateral, and

 

(iii)        with
respect to the agreements entered into by the Company with its customers and its suppliers;

 

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provided, that
notwithstanding the foregoing, the first such report shall be dated on or around the date which is 180 days after the date hereof
and delivered to the Agent within 45 days after such date.

 

(f)    
      Shareholder Material. promptly upon the mailing thereof to the shareholders of the
Company generally, copies of all financial statements, reports and proxy statements so mailed;

 

(g)          Notice
of Default. promptly after the Company knows or has reason to believe that any Default has occurred, a notice of such Default
describing the same in reasonable detail and, together with such notice or as soon thereafter as possible, a description of the
action that the Company has taken or proposes to take with respect thereto;

 

(h)          Uncommitted
Credit Agreement Documents. (i) contemporaneously with the delivery thereof by the Borrower under the Uncommitted Credit Agreement,
a copy of each Borrowing Base Certificate (as defined in the Uncommitted Credit Agreement) and Interim Borrowing Base Certificate
(as defined in the Uncommitted Credit Agreement) delivered thereunder, together with all supporting schedules and information delivered
therewith and (ii) promptly upon execution thereof, copies of all amendments and waivers to the Uncommitted Credit Agreement; and

 

(i)       
   Other Information. from time to time such other information regarding the financial condition,
operations, business or prospects of any Obligor as any Bank or the Agent may reasonably request, including, without
limitation, information relating to any Plan or Multiemployer  Plan
for which consent has been given under Section 8.01(c).

 

The Company will furnish to each Bank,
at the time it furnishes each set of financial statements pursuant to paragraph (a) or (b) above, a certificate of a
senior financial officer of the Company in substantially the form of Exhibit G hereto (the “Compliance Certificate”):
(i) to the effect that no Event of Default is continuing (or, if any Event of Default is continuing, describing the same in
reasonable detail and describing the action that the Company has taken or proposes to take with respect thereto) and (ii) setting
forth in reasonable detail the computations necessary to determine whether the Company is in compliance with Sections 8.07, 8.08(d),
8.09, 8.10 and 8.11 hereof as of the end of the respective quarterly fiscal period or fiscal year.

 

8.02        Litigation.
The Company will promptly (and in any event no later than five Business Days after the Company has notice of the same) give to
each Bank notice of all legal or arbitral proceedings, and of all proceedings by or before any governmental or regulatory authority
or agency, and any material development in respect of such legal or other proceedings, affecting the Company or any of its Subsidiaries,
except proceedings that, if adversely determined, would not (either individually or in the aggregate) have a Material Adverse Effect.
Without limiting the generality of the foregoing, the Company will give to each Bank notice of the assertion in writing of any
environmental matter by any Person against, or with respect to the activities of, the Company or any of its Subsidiaries and notice
of any alleged violation of or non-compliance with any environmental Laws or any permits, licenses or authorizations, other than
any environmental matter or alleged violation that, if adversely determined, would not (either individually or in the aggregate)
have a Material Adverse Effect.

 

8.03        Existence,
Etc. The Company will and will cause each Obligor to:

 

(a)          Existence.
preserve and maintain in full force and effect its legal existence and, except where such failure to preserve and maintain would
not (either individually or in the aggregate) have a Material Adverse Effect, all of its rights, privileges, licenses and franchises;

 

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(b)          Compliance
with Laws. comply in all material respects with all Requirements of Law and its organizational documents;

 

(c)          Payment
of Obligations. pay and discharge its obligations, including all taxes, assessments and governmental charges or levies imposed
on it or on its income or profits or on any of its Property prior to the date on which penalties attach thereto, except for any
such obligations the payment of which is being contested in good faith and by proper proceedings and against which adequate reserves
in accordance with GAAP have been established and are being maintained;

 

(d)          Maintain
Property. maintain all of its Properties used or useful in its business in good working order and condition, ordinary wear
and tear excepted;

 

(e)          Books
and Records. keep adequate records and books of account, in which complete entries will be made in accordance with GAAP; and

 

(f)   
       Inspection. permit, at the sole cost and expense of the Company,
representatives of any Bank or the Agent, during normal business hours and upon reasonable prior notice (which such notice
shall not be required at any time an Event of Default exists), to examine, copy and make extracts from its books and records,
to inspect any of its Properties, and to discuss its business and affairs with its officers, all to the extent reasonably
requested by such Bank or the Agent (which notice shall specify the reasons (determined by such Bank or the Agent in its sole
discretion) for such examination, inspections or discussions), provided that unless an Event of Default shall have occurred
and be continuing, the Company shall not be responsible for the costs and expenses of more than two such inspections in each
year.

 

8.04        Insurance.
The Company will, and will cause its Subsidiaries to, maintain insurance with financially sound and reputable insurance companies,
and with respect to Property and risks of a character usually maintained by corporations engaged in the same or similar business
similarly situated, against loss, damage and liability of the kinds and in the amounts customarily maintained by such corporations,
including, in any event, marine and credit insurance policies covering the Company’s or its Subsidiaries’, as the case
may be, inventory and accounts receivable, respectively, in amounts, pursuant to policies, and issued by insurers, acceptable to
the Required Banks. The Company shall (i) cause all such insurance (other than workers’ compensation) to name the Agent as
loss payee (to the extent covering risk of loss or damage to tangible property or loss on accounts receivable) and as an additional
named insured as its interests may appear (to the extent covering loss or damage to tangible property or any other risk), and furnish
the Agent evidence of the same, and (ii) at least annually, furnish to the Agent certificates of insurance evidencing the existence
of all insurance required to be maintained pursuant to this Section 8.04 and the designation of the Agent as the loss payee
and/or additional named insured, as the case may be, thereunder to the extent required by this Section 8.04.

 

8.05        Prohibition
of Fundamental Changes. The Company will not and will not permit any other Obligor to enter into any transaction of merger
or consolidation or amalgamation, or liquidate, wind up or dissolve itself (or suffer any liquidation or dissolution), except that
any Subsidiary of the Company may be merged with or into the Company or any other Obligor, provided that in the case of
such merger, consolidation or amalgamation involving the Company, the Company shall be the continuing or surviving Person. The
Company will not and will not permit any other Obligor to acquire any business or material Property from, or capital stock of,
or be a party to any acquisition of, any Person except for purchases of inventory and other Property to be sold or used in the
ordinary course of business. The Company will not and will not permit any other Obligor to convey, sell, lease, transfer or otherwise
dispose of, in one transaction or a series of transactions, any part of its business or Property, whether now owned or hereafter
acquired (including, without limitation, receivables and leasehold interests) except the following:

 

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(a)          the
Conveyance of surplus, obsolete or worn out property in the ordinary course of business;

 

(b)          the
sale of inventory in the ordinary course of business for fair market value;

 

(c)          the
Conveyance of any property, business or assets not described in Sections 8.05(a), (b), (d), (e), (f) and (g); provided
that the aggregate book value of all such property, business or assets so Conveyed in any fiscal year of the Company shall not
exceed $2,000,000; provided further, that any such Conveyance shall not be permitted if a Default shall have occurred
and be continuing or would exist after giving effect to such Conveyance;

 

(d)          the
use of cash in the ordinary course of its business;

 

(e)          the
Conveyance for fair market value of any Investment acquired in connection with any transaction described in Section 8.08
for fair market value;

 

(f)          Dividend
Payments to the extent permitted under Section 8.13 hereof; and

 

(g)          the
granting of Liens not prohibited under this Agreement (but not the Conveyance of the property subject to such Lien).

 

8.06        Limitation
on Liens. The Company will not create, incur, assume or suffer to exist any Lien upon any of its Property and will not allow
any of its Subsidiaries to create, incur, assume or suffer to exist any Lien upon any of their respective Property, whether now
owned or hereafter acquired, except:

 

(a)          Liens
created pursuant to the Security Documents;

 

(b)          Liens
imposed by any Governmental Authority for taxes, assessments or charges not yet due or that are being contested in good faith and
by appropriate proceedings if adequate reserves with respect thereto are maintained on the books of the Company in accordance with
GAAP;

 

(c)          carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s or other like Liens arising in the ordinary course
of business that are not overdue for a period of more than 30 days or that are being contested in good faith and by appropriate
proceedings; and Liens securing judgments but only to the extent for an amount and for a period not resulting in an Event of Default
under Section 9(h) hereof;

 

(d)          pledges
or deposits under worker’s compensation, unemployment insurance and other social security legislation;

 

(e)          a
mortgage Lien granted by 6900 Quad Avenue, LLC over its warehouse facility located in Baltimore, Maryland, securing Indebtedness
permitted pursuant to Section 8.07(b) hereof

 

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(f)       
   deposits to secure the performance of bids, trade contracts (other than for Indebtedness), leases,
statutory obligations, surety and appeal bonds, performance bonds and other obligations of a like nature incurred in the
ordinary course of business;

 

(g)          intentionally
omitted;

 

(h)          Liens
on Property of Imbali Metals Bvba securing the Imbali Facility;

 

(i)      
    Liens encumbering Inventory securing the Indebtedness permitted pursuant to Sections 8.07(f)(A) and
(B);

 

(j)      
    Liens securing Indebtedness permitted under Section 8.07(g) hereof, provided that such Liens are
subject to the terms of the Intercreditor Agreement;

 

(k)          Liens
securing Indebtedness permitted under Section 8.07(h), provided that such Liens shall encumber only the capital assets financed
with such Indebtedness; and

 

(l)     
     Liens securing Indebtedness permitted under Section 8.07(i) below, provided that such Liens
shall encumber only assets of the Subsidiary which incurs such Indebtedness.

 

8.07        Indebtedness.
The Company will not, and will not allow any of its Subsidiaries to, create, incur or suffer to exist any Indebtedness except:

 

(a)          Indebtedness
to the Banks hereunder;

 

(b)          Indebtedness
of 6900 Quad Avenue, LLC under the Quad Avenue Loan Agreement in an aggregate amount not to exceed $1,300,000, the proceeds of
which have been used to finance the acquisition of the warehouse facility in Baltimore, Maryland, and any unsecured Guarantee by
the Company of such Indebtedness existing on the date hereof;

 

(c)          intentionally
omitted;

 

(d)          other
unsecured Indebtedness in an aggregate outstanding principal amount not to exceed at any time $250,000;

 

(e)          Indebtedness
of Imbali Metals Bvba under the Imbali Facility and the Indebtedness of the Company under the Imbali Guarantee, so long as such
Indebtedness is subject to the Subordination Agreement;

 

(f)      
    the following Indebtedness, provided that (i) the aggregate amount of the Indebtedness permitted
under this clause (f) outstanding at any time shall not exceed $25,000,000 (calculated without duplication of any Guarantee
of such Indebtedness), (ii) at the time of the incurrence of such Indebtedness no Default shall exist or result
therefrom, and (iii) the Company shall have provided the Agent and each Bank a certificate of a financial officer of the
Company showing the Company’s compliance with the covenants set forth in Section 8.09 and 8.10 after giving effect to
such Indebtedness and certifying that at the time of the incurrence thereof and after giving effect thereto, no Default shall
exist:

 

(A)         Indebtedness
of the Company which is incurred to finance the acquisition of Inventory in the ordinary course of business and is non-recourse
to the Company and any of its Property other than the Inventory financed thereby, pursuant to customary non-recourse provisions
(including normal and customary exceptions to the non-recourse nature thereof); provided that (1) no Inventory so financed
is included in the Borrowing Base until the Liens securing such Indebtedness (other than Permitted Borrowing Base Liens and Liens
permitted under Section 8.07(g)) are released and (2) such Indebtedness does not exceed 100% of the cost of acquiring such
Inventory;

 

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(B)         In
addition to the Reimbursement Obligations, Indebtedness in the form of reimbursement obligations under letters of credit (which
are not Letters of Credit hereunder) issued for the account of the Company to secure the purchase price of Inventory in the ordinary
course of business to be acquired by the Company if (1) such reimbursement obligation is secured only by the Inventory the
purchase price of which is secured by the applicable Letter of Credit; (2) no such Inventory is included in the Borrowing
Base until the Liens securing such Indebtedness are released and (3) such Indebtedness does not exceed 100% of the cost of
acquiring such Inventory;

 

(C)         Subordinated
Debt; and

 

(D)         Guarantees
by the Company of Indebtedness of certain of its suppliers incurred in the form of loans made to such suppliers by third parties
(which may include one or more of the Banks) under pre-export finance arrangements; provided that (1) with respect to any
one supplier, the amount of the Guarantee provided for the benefit of such supplier shall be limited to an amount not to exceed
20% of the aggregate amount of such loans to such supplier and (2) the aggregate amount of the Indebtedness Guaranteed pursuant
to the Guarantees provided under this clause (D) shall not exceed $3,000,000 at any time outstanding;

 

(g)          Indebtedness
of the Company under the Uncommitted Credit Agreement in an aggregate principal amount outstanding not to exceed at any time an
amount equal to 50% of the aggregate Revolving Loan Commitments;

 

(h)          Indebtedness
in an aggregate principal amount not to exceed $10,000,000 incurred to finance Capital Expenditures to the extent permitted under
Section 8.20 hereof;

 

(i)      
    Indebtedness of any Subsidiary of the Company that is organized under the Laws of Australia in an
aggregate principal amount outstanding not to exceed AUS$20,000,000 at any time;

 

(j)     
     Indebtedness under Hedging Agreements entered into in the ordinary course of business and not
for speculative purposes; and

 

(k)          any
refinancings, refundings, renewals or extensions of Indebtedness permitted under Section 8.07(b), (e) or (i), provided that
(i) the amount of such Indebtedness is not increased at the time of such refinancing, refunding, renewal or extension and (ii)
any guarantee entered into in connection with such refinancing, refunding, renewal or extension that is not a refinancing of an
existing guarantee of such Indebtedness shall not be permitted under this Section 8.07(k).

 

8.08        Investments.
The Company will not, nor will it permit any of its Subsidiaries to, make or permit to remain outstanding any Investments except:

 

(a)          Investments
outstanding on the date hereof and identified on Schedule II hereto;

 

(b)          deposit
accounts with banks;

 

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(c)          Hedging
Agreements entered into in the ordinary course of business and not for speculative purposes;

 

(d)          Investments
by the Company in Imbali Metals Bvba in an aggregate amount not to exceed €4,000,000
or the dollar equivalent thereof (determined based on the amount initially advanced with respect thereto, giving effect to any
repayments and including any amount outstanding on the Closing Date) and Investments by the Company under the Imbali Guarantee;

 

(e)          Investments
of the type described in clause (a) and (b) of the definition thereof in third parties; provided, that such Investments are made
with the proceeds of Subordinated Debt and the aggregate outstanding amount of such Investments (determined based on the amount
initially advanced with respect thereto minus any repayment thereof) does not exceed $12,000,000 at any time;

 

(f)       
   Permitted Investments; and

 

(g)          other
Investments in an aggregate amount not to exceed at any time $500,000 (determined based on the amount initially advanced with respect
thereto, giving effect to any repayments).

 

8.09        Leverage
Ratio. The Company will not permit the Leverage Ratio to exceed at any time 6.00 to 1.

 

8.10        Net
Working Capital. The Company will not permit its Net Working Capital to be less than the sum of $35,000,000 plus an
amount equal to 25% of its Consolidated Net Income (but, in each case, only if a positive number) for the fiscal year most recently
ended, to be tested as of the end of each fiscal quarter of the Company.

 

8.11        No
Net Loss. The Company will not permit its Consolidated Net Income (but calculated before taxes and extraordinary items in accordance
with GAAP) for any two or more consecutive fiscal quarters to be less than -$4,000,000 (negative four million Dollars) in the aggregate.

 

8.12        Lines
of Business. The Company will not nor will it permit any Subsidiary to engage to any substantial extent in any line or lines
of business activity other than the business of acquiring, selling, trading, extruding and otherwise dealing in aluminum and steel
semi-finished products (or other similar metal products).

 

8.13        Dividend
Payments. The Company will not, nor will it permit any of its Subsidiaries to, declare or make any Dividend Payment (other
than Dividend Payments to the Company) at any time if (a) an Event of Default exists or (b) immediately after giving effect to
making such Dividend Payment any Event of Default would exist or be continuing.

 

8.14        Use
of Proceeds. The Company will use the proceeds of the extensions of credit hereunder for working capital and general corporate
purposes in the ordinary course of business (in compliance with all applicable legal and regulatory requirements, including Regulations
T, U and X and the Securities Act of 1933 (as amended) and the Securities Act of 1934 (as amended) and the regulations thereunder);
provided that neither the Agent nor any Bank has any responsibility as to the use of any of such proceeds.

 

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8.15        Subordinated
Debt. The Company will not purchase, redeem, retire or otherwise acquire for value, or set apart any money for any sinking,
defeasance or other analogous fund for, the purchase, redemption, retirement or other acquisition of, or make any payment or prepayment
of the principal of or interest on, or any other amount owing in respect of, any Subordinated Debt, except for regularly scheduled
payments of principal and interest in respect thereof (if any) required pursuant to the instruments evidencing such Subordinated
Debt. The Company will not purchase, redeem, retire or otherwise acquire for value, or set apart any money for any sinking, defeasance,
or other analogous fund for, the purchase, redemption, retirement or other acquisition of, or make any payment or repayment of
the principal of or interest on, or any other amounts owing in respect of, the Imbali Guarantee.

 

8.16        Intentionally
omitted

 

8.17        Additional
Guarantors; Pledge of Additional Subsidiaries. The Company will take such action, and will cause each of its Subsidiaries which
is organized under the Laws of a State of the United States (other than the Quad Avenue Subsidiary) (each, a “Domestic
Subsidiary”) to take such action, from time to time as shall be necessary to ensure that all Domestic Subsidiaries of
the Company (other than the Quad Avenue Subsidiary) become “Guarantors” hereunder and grant Liens in all their respective
personal property assets, including the following actions:

 

(a)          Subsidiary
Guarantee. duly executing and delivering a Supplement to the Subsidiary Guarantee in the form attached as Annex I thereto for
each Domestic Subsidiary formed or acquired following the Closing Date;

 

(b)          Secured
Documents. causing such Domestic Subsidiary to take such action (including executing and delivering a Supplement to the Security
Agreement in form attached as Annex I thereto properly completed and delivering such certificates, executing and delivering such
UCC financing statements) as shall be necessary to create and perfect valid and enforceable first priority Liens (subject to the
terms of the Intercreditor Agreement) on substantially all of the personal property assets of such Domestic Subsidiary as collateral
security for the Obligations; and

 

(c)          Corporate
Authorization. delivering such proof of corporate or other relevant action, incumbency of officers, opinions of counsel and
other documents as is consistent with those delivered by each Obligor pursuant to Section 6.01 on the Closing Date or as the Agent
shall have reasonably requested.

 

In the event that any Obligor shall form
or acquire any new Subsidiary, the Company will promptly cause the Capital Securities issued by such Subsidiary to be pledged and
delivered pursuant to the Security Documents promptly after such Subsidiary is formed or acquired (except that, if such Subsidiary
is not a Domestic Subsidiary, the Capital Securities issued by such Subsidiary to be pledged pursuant to the Security Documents
shall be limited to 65% of the outstanding Capital Securities issued by such Subsidiary, provided that, if, as a result of any
change in, or the introduction, adoption, effectiveness or interpretation of, tax laws, rules, regulations, directives or guidelines
of the United States of America after the date of this Agreement, the grant of security interests and Liens by the Company or its
Domestic Subsidiaries in respect of any additional Capital Securities in any non-Domestic Subsidiary to the Agent would not result
in an increase in the aggregate tax liabilities of the Company or such Domestic Subsidiary over what such liabilities would have
been without such security interests and Liens, then, promptly after the change in, or the introduction, adoption, effectiveness
or interpretation of, any such laws, rules, regulations, directives or guidelines, such pledge shall be increased to include all
such additional Capital Securities. 

 

8.18        Intentionally
omitted.

 

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8.19        Amendment
to Organizational Documents. The Company will not and will not permit any Subsidiary to consent to any modification, supplement
or waiver of any of the provisions of any of their Governing Documents in a manner materially adverse to the Banks.

 

8.20        Capital
Expenditures. The Company will not and will not permit any Subsidiary to make, incur or commit to make (by way of the acquisition
of securities of a Person or otherwise) Capital Expenditures, other than Capital Expenditures for logistical assets in an aggregate
amount not to exceed $10,000,000.

 

8.21        Transactions
with Affiliates. The Company will not, nor will it permit any of its Subsidiaries to, sell, lease or otherwise transfer any
Property to, or purchase, lease or otherwise acquire any Property from, or otherwise engage in any other transactions with, any
of its Affiliates, except (a) transactions in the ordinary course of business at prices and on terms and conditions not less favorable
to the Company or such Subsidiary than could be obtained on an arm’s length basis from unrelated third parties, (b) transactions
between or among the Company and one or more Guarantors not involving any other Affiliate, (c) any Dividend Payments permitted
by Section 8.13 and (d) Subordinated Debt permitted hereby.

 

8.22        Environmental
Laws.

 

(a)          The
Company will, and will cause it Subsidiaries to, comply with, all applicable Environmental Laws and obtain and comply with and
maintain Environmental Permits, except in all cases where noncompliance or the failure to obtain Environmental Permits could not
reasonably be expected to have a Material Adverse Effect or except to the extent that the same are being contested in good faith
by appropriate proceedings and for which adequate reserves have been established and maintained on the books and records of the
Company and the applicable Subsidiary in accordance with GAAP.

 

(b)          The
Company will, and will cause it Subsidiaries to, handle, transport and dispose of, and cause all subtenants to handle, transport
and dispose of, all Materials of Environmental Concern in material compliance with all applicable Environmental Laws.

 

8.23        Take
or Pay Contracts. The Company will not, and will not permit its Subsidiaries to, enter into or be a party to any contract or
arrangement for the purchase of materials, supplies, other properties or services if such contract or arrangement requires that
payment be made by the Company or a Subsidiary regardless of whether such materials, supplies, other properties or services are
delivered or forwarded to it.

 

8.24        Limitation
on Dividend Clause and Negative Pledge Clauses. The Company will not, and will not permit its Subsidiaries to, enter into with
any Person any agreement, which prohibits or limits the ability of the Company or any of its Subsidiaries to create, incur, assume
or suffer to exist any Lien upon or otherwise transfer any interest in any of its property, assets or revenues, whether now owned
or hereafter acquired except for (i) those prohibitions or limitations set forth in this Agreement or any other Basic Document
or the Uncommitted Credit Agreement and any agreements entered into in connection therewith, the Imbali Facility and any agreements
entered into in connection therewith, (ii) those existing on the Closing Date and set forth on Schedule IV, (iii) with respect
to any Subsidiary pursuant to an agreement relating to any Indebtedness incurred by such Subsidiary on or prior to the date on
which such Subsidiary became a Subsidiary or was acquired by the Company or any of its Subsidiaries and outstanding on such date;
(iv) with respect to purchase money obligations for any property acquired in the ordinary course of business that impose restrictions
on such property, and (v) consisting of customary non-assignment or subletting provisions in leases governing leasehold interests
to the extent such provisions restrict the transfer of the lease or the property leased thereunder, and customary non-assignment
provisions of other contracts entered into in the ordinary course of business..

 

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8.25         Limitation
on Sales and Leasebacks. The Company will not, and will not permit its Subsidiaries to, enter into any arrangement with any
Person providing for (i) the leasing by the Company or any Subsidiary of real or personal property which has been or is to be either
sold or transferred by the Company or such Subsidiary to such Person or to any other Person to whom funds have been or are to be
advanced by such Person on the security of such property or rental obligations of the Company or (ii) the purchase or transfer
of any real or personal property from any Person to the Company or such Subsidiary which has been leased by the Company or such
Subsidiary to such Person, except for (in each case) any transactions, the consideration of which does not exceed in the aggregate
$1,000,000 in any calendar year.

 

8.26         Accounting
Changes. The Company will not, and will not permit its Subsidiaries to, make any significant change in its accounting treatment
or reporting practices, except as required by GAAP, without providing the Agent with ten (10) days prior written notice of such
change. At the end of any calendar year during which any such change has occurred, the Company shall prepare and deliver to the
Agent an explanatory statement, in form and substance reasonably satisfactory to the Agent, reconciling the previous treatment
or practice with the new treatment or practice.

 

8.27         Borrowing
Base. The Company hereby agrees that it will not at any time remove Property (or proceeds thereof) from the Borrowing Base
for any reason (other than (i) pursuant to a transaction permitted under Section 8.05(b), (c) or (d) above or (ii) as a result
of becoming ineligible for inclusion therein), provided, that this provision shall not affect or restrict any reallocation
of Borrowing Base assets from or to the Borrowing Base as expressly set forth in the Intercreditor Agreement.

 

8.28         Deposit
Accounts. The Company will not open any operating deposit accounts located in the United States (other than payroll accounts)
not in existence on the date hereof without the prior written consent (not to be unreasonably withheld) of all Banks (other than,
for the avoidance of doubt, any Affiliate of an Issuing Bank which has issued a Letter of Credit pursuant to the last sentence
of the definition of Issuing Bank).

 

8.29         Storage
Facilities. Upon the request of the Agent from time to time, the Company shall use commercially reasonable efforts to obtain
control agreements among the Company, each storage facility specified by the Agent and the Agent (in form and substance reasonably
acceptable to the Agent), under which each applicable storage facility shall agree that upon receipt of notice from the Agent of
the occurrence and continuance of an Event of Default, it shall accept instruction from the Agent and shall no longer accept instruction
from the Company.

 

8.30         Sanctions.
The Company hereby agrees that it shall and shall cause its Subsidiaries to (i) maintain in effect and enforce policies and procedures
designed to ensure compliance by the Company, any Person that is an Affiliate of the Company, including its Subsidiaries, and,
to the extent commercially reasonable, its agents with applicable Anti-Terrorism Laws and (ii) ensure at all times the truth and
accuracy of the representations and warranties, and adherence to, the covenants, set forth in Section 7.16 hereof.

 

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Section
9.

Events of Default.

 

9.01        Events
of Default. If one or more of the following events (herein called “Events of Default”) shall occur and be
continuing:

 

(a)          Payment
Default. The Company shall default in the payment when due (whether at stated maturity or upon mandatory or optional prepayment)
of: (i) any principal of any Loan or any Reimbursement Obligation, the amount necessary to provide Cash Collateral for any Letter
of Credit or otherwise as required thereby, or (ii) any fee or any other amount payable by it hereunder (other than interest) or
under any other Basic Document or any interest on any Loan or any Reimbursement Obligation and such default in payment (under this
clause (ii)) shall continue unremedied for three (3) Business Days after notice thereof to the Company by the Agent; or

 

(b)          Cross
Default. (i) The Company shall default in the payment when due of any principal of or interest on any of its other Material
Indebtedness or any of its Subsidiaries shall default in the payment when due of any principal of or interest on any of its Material
Indebtedness; or any event specified in any note, agreement, indenture or other document evidencing or relating to any such Material
Indebtedness shall occur if the effect of such event is to cause, or (with the giving of any notice or the lapse of time or both)
to permit the holder or holders of such Material Indebtedness (or a trustee or agent on behalf of such holder or holders) to cause,
such Material Indebtedness to become due, or to be prepaid in full (whether by redemption, purchase, offer to purchase or otherwise),
prior to its stated maturity; or an early termination date (or comparable event) occurs with respect to any Hedging Agreement or
other swap or derivative whether or not pursuant to an ISDA master agreement that constitutes Material Indebtedness; as used herein,
the term “Material Indebtedness” means Indebtedness under the Uncommitted Credit Agreement, Indebtedness under
the Imbali Facility and any other Indebtedness (other than the Obligations) with an outstanding principal balance (or with respect
to Hedging Agreements or other swap or derivative whether or not pursuant to an ISDA master agreement, the aggregate amount (giving
effect to any netting agreements) that the Company or such Subsidiary would be required to pay if an early termination date or
comparable event under such agreement were to occur at such time) of $5,000,000 or more, in any individual case or in the aggregate;
or

 

(c)          Representations
and Warranties. Any representation, warranty or certification made or deemed made herein or in any other Basic Document (or
in any modification or supplement hereto or thereto) by the Company or any of its Subsidiaries, or any certificate furnished to
any Bank or the Agent pursuant to the provisions hereof or thereof, shall prove to have been false or misleading as of the time
made or furnished in any material respect; or

 

(d)          Covenant
Defaults. The Company shall default in the performance of any of its obligations under any of Sections 8.01(g), 8.03(a), 8.05,
8.06, 8.07, 8.08, 8.09, 8.10, 8.11, 8.13, 8.15, 8.19, 8.20, 8.21 or 8.27 hereof or any Obligor shall default in the performance
of any of its obligations under the Security Agreement; or the Company shall default in the performance of its obligations under
Section 8.01(d) hereof and such default shall continue unremedied for a period of five (5) or more Business Days; or the Company
shall default in the performance of any of its obligations in this Agreement or any other Basic Document (other than those already
specified above in this clause (d)) and such default shall continue unremedied for a period of thirty (30) or more days after notice
thereof to the Company by the Agent or any Bank (through the Agent); or

 

(e)          Failure
to Pay Debts. The Company or any of its Subsidiaries shall admit in writing its inability to, or be generally unable to, pay
its debts as such debts become due; or

 

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(f)       
   Voluntary Insolvency Proceedings. The Company or any of its Subsidiaries shall (i) apply for or
consent to the appointment of, or the taking of possession by, a receiver, custodian, trustee, examiner or liquidator of
itself or of all or a substantial part of its Property, (ii) make a general assignment for the benefit of its creditors,
(iii) commence a voluntary case under the Bankruptcy Code, (iv) file a petition seeking to take advantage of any
Law of any jurisdiction (domestic or foreign) relating to bankruptcy, insolvency, reorganization, liquidation, dissolution,
arrangement or winding-up, or composition or readjustment of debts, (v) fail to controvert in a timely and appropriate
manner, or acquiesce in writing to, any petition filed against it in an involuntary case under the Bankruptcy Code or, in
respect of Subsidiaries of the Company which are not Domestic Subsidiaries, any similar Law relating to bankruptcy,
insolvency, reorganization, liquidation, dissolution, arrangement or winding up, or composition or readjustment of debts, or
(vi) take any corporate action for the purpose of effecting any of the foregoing; or

 

(g)          Involuntary
Insolvency Proceedings. A proceeding or case shall be commenced, without the application or consent of the Company or any of
its Subsidiaries, in any court of competent jurisdiction, seeking (i) its reorganization, liquidation, dissolution, arrangement
or winding-up, or the composition or readjustment of its debts, (ii) the appointment of a receiver, custodian, trustee, examiner,
liquidator or the like of the Company or any of its Subsidiaries or of all or any substantial part of its Property, or (iii) similar
relief in respect of the Company or any of its Subsidiaries under any present or future Law of any jurisdiction (domestic or foreign)
relating to bankruptcy, insolvency, reorganization, winding-up, or composition or adjustment of debts, and such proceeding or case
shall continue undismissed, or an order, judgment or decree approving or ordering any of the foregoing shall be entered and continue
unstayed and in effect, for a period of 60 or more days; or an order for relief against the Company or any of its Subsidiaries
shall be entered in an involuntary case under the Bankruptcy Code; or

 

(h)          Judgment
Default. A final judgment or judgments for the payment of money in excess of $1,000,000 (exclusive of judgment amounts fully
covered by insurance where the insurer has admitted liability in respect of such judgment) shall be rendered by one or more courts,
administrative tribunals or other bodies having jurisdiction against the Company or any of its Subsidiaries and the same shall
not be discharged (or provision shall not be made for such discharge), or a stay of execution thereof shall not be procured, within
30 days from the date of entry thereof and the Company or any of its Subsidiaries shall not, within said period of 30 days, or
such longer period during which execution of the same has been stayed, appeal therefrom and cause the execution thereof to be stayed
during such appeal; or

 

(i)       
   ERISA Events. The Company or any ERISA Affiliate shall incur any liability to a Plan, a Multiemployer Plan
or PBGC (or any combination of the foregoing) that would (either individually or in the aggregate) have a Material Adverse
Effect; or

 

(j)      
    Change of Control. (i) The Principal Shareholders shall cease to own beneficially and of
record at least 20% of the issued and outstanding capital stock having voting power to elect members of the board of
directors of the Company, (ii) Nathan Kahn shall cease to be President of the Company and a successor acceptable to the
Required Banks shall not have been appointed to such position within 90 days thereafter (such determination of acceptability
by the Required Banks to be made for purposes of waiving any resulting Default only, the Company agreeing that it is solely
responsible for selecting an appropriate replacement) or (iii) the Persons who were members of the board of directors of
the Company on the Closing Date (together with any new directors whose election to such board of directors or whose
nomination for election was approved by a vote of a majority of such members of the board of directors or members whose
election or nomination for election was previously so approved) cease for any reason to constitute a majority of the members
of the board of directors of the Company; or

 

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(k)          Security
Documents; Basic Documents. The Liens created by the Security Documents shall at any time not constitute a valid and perfected
Lien on the Collateral intended to be covered thereby (to the extent perfection by filing, registration, recordation or possession
is required herein or therein) in favor of the Banks, free and clear of all other Liens (other than Liens permitted under Section
8.06 hereof or under the respective Security Documents), or, except for expiration in accordance with its terms, any of the Basic
Documents shall for whatever reason be terminated or cease to be in full force and effect, or the enforceability thereof shall
be contested by any Obligor, or any Obligor shall assert in writing that any Basic Document is unenforceable; or

 

(l)  
        Subordination Provisions. Any subordination provision of any
Indebtedness subordinated to the Loan Obligations shall cease, for any reason, to be in full force and effect, or the Company
or any of its Subsidiaries shall so assert in writing, unless such Indebtedness would, at all times thereafter, be otherwise
permitted under Section 8.07; or

 

(m)         Quad
Avenue Loan Agreement. 6900 Quad Avenue, LLC shall default in the performance of its obligations under Section 4(a) of the
Quad Avenue Loan Agreement; or

 

(n)          Uncommitted
Credit Agreement Disclosure. At any time, the Uncommitted Credit Agreement shall be amended, modified or waived in a manner
which restricts the right of the Uncommitted Facility Agent to share with the Agent and the Banks, borrowing base reports delivered
under the Uncommitted Credit Agreement and related information;

 

THEREUPON: (1) in the case of an Event
of Default other than one referred to in clause (f) or (g) of this Section 9, the Agent may with the consent of
the Required Banks, and, upon request of the Required Banks shall by notice to the Company, terminate the Commitments and/or declare
the principal amount then outstanding of, and the accrued interest on, the Loans, the Reimbursement Obligations and all other Loan
Obligations (including any amounts payable under Section 5.04 or 5.05 hereof) to be forthwith due and payable, whereupon
such amounts shall be immediately due and payable without presentment, demand, protest or other formalities of any kind, all of
which are hereby expressly waived by the Company; and (2) in the case of the occurrence of an Event of Default referred to
in clause (f) or (g) of this Section 9, the Commitments shall automatically be terminated and the principal amount
then outstanding of, and the accrued interest on, the Loans, the Reimbursement Obligations and all other Loan Obligations (including
any amounts payable under Section 5.01 and 5.04 hereof) shall automatically become immediately due and payable without presentment,
demand, protest or other formalities of any kind, all of which are hereby expressly waived by the Company.

 

9.02        Cover
for Contingent Obligations. In addition, upon the occurrence and during the continuance of any Event of Default (if the Agent
has declared the principal amount then outstanding of, and accrued interest on, the Loans and all other Loan Obligations to be
due and payable), the Company agrees that it shall, if requested by the Agent or the Required Banks through the Agent (and, in
the case of any Event of Default referred to in clause (f) or (g) of this Section 9, forthwith, without any demand
or the taking of any other action by the Agent or such Banks) provide cover for the Letter of Credit Liabilities by depositing
with the Agent Cash Collateral in an amount equal to 103% of the then aggregate undrawn face amount of all Letters of Credit, which
funds shall be held by the Agent in the Collateral Account as collateral security for the Obligations.

 

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Section
10.

The Agent.

 

10.01      Appointment,
Powers and Immunities. Each Bank hereby irrevocably appoints and authorizes Rabobank to act as agent on its behalf, and on
behalf of each of its Affiliates who are owed Obligations (each such Affiliate by acceptance of the benefits of the Basic Documents
hereby ratifying such appointment), hereunder and under the other Basic Documents with such powers as are specifically delegated
to the Agent by the terms of this Agreement and of the other Basic Documents, together with such other powers as are reasonably
incidental thereto. The Agent (which term as used in this sentence and in Section 10.05 and the first sentence of Section 10.06
hereof shall include reference to its Affiliates and its own and its Affiliates’ officers, directors, employees and agents):
(a) has no duties or responsibilities except those expressly set forth in this Agreement and in the other Basic Documents,
and shall not by reason of this Agreement or any other Basic Document be a trustee or fiduciary for any Secured Party; (b) shall
not be responsible to any Secured Party for any recitals, statements, representations or warranties contained in this Agreement
or in any other Basic Document, or in any certificate or other document referred to or provided for in, or received by any of them
under, this Agreement or any other Basic Document, or for the value, validity, effectiveness, genuineness, enforceability or sufficiency
of this Agreement or any other Basic Document or any other document referred to or provided for herein or therein or for any failure
by any Obligor or any other Person to perform any of its obligations hereunder or thereunder; (c) shall not be required to
initiate or conduct any litigation or collection proceedings hereunder or under any other Basic Document, unless so directed by
the Required Banks; (d) shall not be required to act as collateral agent hereunder or otherwise be responsible for any collateral
security granted in connection herewith except with respect to any collateral that cannot be perfected by filing Uniform Commercial
Code financing statements and is required to be delivered to the Agent under the Basic Documents; and (e) shall not be responsible
for any action taken or omitted to be taken by it hereunder or under any other Basic Document or under any other document or instrument
referred to or provided for herein or therein or in connection herewith or therewith, except for its own gross negligence or willful
misconduct. The Agent may employ agents and attorneys-in-fact and shall not be responsible for the negligence or misconduct of
any such agents or attorneys-in-fact selected by it in good faith. The Agent may deem and treat the Banks named in the Register
as the “Banks” hereunder for all purposes hereof unless and until a notice of the assignment or transfer thereof has
been filed with the Agent.

 

10.02      Reliance
by Agent. The Agent shall be entitled to rely upon any certification, notice or other communication (including any thereof
by telephone, telecopy, telex, telegram or cable) believed by it to be genuine and correct and to have been signed or sent by or
on behalf of the proper Person or Persons, and upon advice and statements of legal counsel, independent accountants and other experts
selected by the Agent. As to any matters not expressly provided for by this Agreement or any other Basic Document, the Agent shall
in all cases be fully protected in acting, or in refraining from acting, hereunder or thereunder in accordance with instructions
given by the Required Banks and such instructions of such Banks and any action taken or failure to act pursuant thereto shall be
binding on all of the Banks.

 

10.03      Defaults.
The Agent shall not be deemed to have knowledge or notice of the occurrence of a Default (other than payment Defaults) unless the
Agent has received notice from a Bank or the Company specifying such Default and stating that such notice is a “Notice of
Default”. In the event that the Agent receives such a notice of the occurrence of a Default or becomes aware of a payment
Default, the Agent shall give prompt notice thereof to the Banks. The Agent shall (subject to Section 10.07 hereof) take such
action with respect to such Default as shall be directed by the Required Banks, provided that, unless and until the Agent
has received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action,
with respect to such Default as it shall deem advisable in the best interest of the Banks except to the extent that this Agreement
expressly requires that such action be taken, or not be taken, only with the consent or upon the authorization of the Required
Banks.

 

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10.04      Rights
as a Bank. With respect to its Commitments and the Loans made by it, Rabobank (and any successor acting as Agent) in its capacity
as a Bank hereunder has the same rights and powers hereunder as any other Bank and may exercise the same as though it were not
acting as the Agent, and the term “Bank” or “Banks” shall, unless the context otherwise indicates, include
the Agent in its individual capacity. Rabobank (and any successor acting as Agent) and its affiliates may (without having to account
therefor to any Bank) accept deposits from, lend money to, make investments in and generally engage in any kind of banking, trust
or other business with the Company (and any of its Subsidiaries or Affiliates) as if it were not acting as the Agent, and Rabobank
and its affiliates may accept fees and other consideration from the Company for services in connection with this Agreement or otherwise
without having to account for the same to the Banks.

 

10.05      Indemnification.
The Banks severally agree to indemnify the Agent (to the extent not reimbursed under Section 11.03 hereof, but without limiting
the obligations of the Company under said Section 11.03) and each of the Agent’s respective officers, directors, employees
and agents, ratably in accordance with their respective Revolving Loan Commitments, for any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind and nature whatsoever that may be imposed
on, incurred by or asserted against the Agent in its capacity as Agent (including by any Secured Party) arising out of or by reason
of any investigation in or in any way relating to or arising out of this Agreement or any other Basic Document or any other documents
contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby (including the costs and expenses
that the Company is obligated to pay under Section 11.03 hereof but excluding, unless a Default exists, normal administrative
costs and expenses incident to the performance of its agency duties hereunder) or the enforcement of any of the terms hereof or
thereof or of any such other documents, provided that no Bank shall be liable for any of the foregoing to the extent they
arise from the gross negligence or willful misconduct of the party to be indemnified. The Banks severally agree to indemnify each
Fronting Bank and each of their respective officers, directors, employees and agents (to the extent not reimbursed under Section 11.03
hereof, but without limiting the obligations of the Company under said Section 11.03), ratably in accordance with their respective
Revolving Loan Commitments, for any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements of any kind and nature whatsoever that may be imposed on, incurred by or asserted against any of them
in their capacity as a Fronting Bank arising out of or by reason of any investigation in or in any way relating to or arising out
of this Agreement or any other Basic Document or any other documents contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby (including the costs and expenses that the Company is obligated to pay under Section 11.03
hereof but excluding, unless a Default exists, normal administrative costs and expenses incident to the performance of its agency
duties hereunder) or the enforcement of any of the terms hereof or thereof or of any such other documents, provided that
no Bank shall be liable for any of the foregoing to the extent they arise from the gross negligence or willful misconduct of the
party to be indemnified.

 

10.06      Non-Reliance
on Agent and Other Banks. Each Bank agrees that it has, independently and without reliance on the Agent or any other Bank,
and based on such documents and information as it has deemed appropriate, made its own credit analysis of the Company and decision
to enter into this Agreement and that it will, independently and without reliance upon the Agent or any other Bank, and based on
such documents and information as it shall deem appropriate at the time, continue to make its own analysis and decisions in taking
or not taking action under this Agreement or under any other Basic Document. The Agent shall not be required to keep itself informed
as to the performance or observance by any Obligor of this Agreement or any of the other Basic Documents or any other document
referred to or provided for herein or therein or to inspect the Properties or books of the Company. Except for notices, reports
and other documents and information expressly required to be furnished to the Banks by the Agent hereunder or under the Security
Documents, the Agent shall not have any duty or responsibility to provide any Bank with any credit or other information concerning
the affairs, financial condition or business of the Company (or any of its Affiliates) that may come into the possession of the
Agent or any of its Affiliates.

 

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10.07      Failure
to Act. Except for action expressly required of the Agent hereunder and under the other Basic Documents, the Agent shall in
all cases be fully justified in failing or refusing to act hereunder and thereunder unless it shall receive further assurances
to its satisfaction from the Banks of their indemnification obligations under Section 10.05 hereof against any and all liability
and expense that may be incurred by it by reason of taking or continuing to take any such action.

 

10.08      Resignation
or Removal of Agent. Subject to the appointment and acceptance of a successor Agent as provided below, the Agent may resign
at any time by giving notice thereof to the Banks and the Company, and the Agent may be removed at any time with or without cause
by the Required Banks. Upon any such resignation or removal, the Required Banks have the right to appoint a successor Agent, subject
to the Company’s approval of such successor Agent. If no successor Agent has been so appointed by the Required Banks (or
if the Company shall fail to approve such a successor Agent) and has accepted such appointment within 30 days after the retiring
Agent’s giving of notice of resignation or the Required Banks’ removal of the retiring Agent, then the retiring Agent
may, on behalf of the Banks, subject to the Company’s approval, appoint a successor Agent, that shall be a bank that has
an office in New York, New York or assign all of its rights and delegate all of its obligations hereunder and under the other Basic
Documents to the Banks. Upon the acceptance of any appointment as Agent hereunder by a successor Agent, or the assignment and delegation
to the Banks as set forth in the preceding sentence, such successor Agent (or the Banks, as applicable) shall thereupon succeed
to and become vested with all the rights, powers, privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations hereunder. After any retiring Agent’s resignation or removal hereunder as Agent,
the provisions of this Section 10 shall continue in effect for its benefit in respect of any actions taken or omitted to be
taken by it while it was acting as the Agent.

 

10.09      Agency
Fee. So long as the Commitments are in effect and until payment in full of the Obligations, the Company will pay to the Agent
an agency fee as mutually agreed upon.

 

10.10      Consents
under Other Basic Documents. Except as otherwise provided in Section 11.04 hereof, the Agent may, with the prior consent of
the Required Banks (but not otherwise), consent to any modification, supplement or waiver under any of the Basic Documents, provided
that, without the prior consent of each Bank, the Agent shall not (except as provided herein or in the Security Documents) release
any Collateral or otherwise terminate any Lien under any Basic Document or agree to additional obligations being secured by such
Collateral (unless the Lien for such additional obligations shall be junior and subordinate to the Lien in favor of the other obligations
secured by such Basic Document).

 

10.11      Pendency
of Insolvency. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization, arrangement,
adjustment, composition or other judicial proceeding relative to any Obligor, the Agent (irrespective of whether the principal
of any Obligation shall then be due and payable as herein expressed or by declaration or otherwise and irrespective of whether
the Agent shall have made any demand on any Obligor) shall be entitled and empowered, by intervention in such proceeding or otherwise:

 

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(a)          Filing
Claims. to file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Obligations
that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims of the
Secured Parties (including any claim for the reasonable compensation, expenses, disbursements and advances of the Banks and the
Agent and their respective agents and counsel and all other amounts due the Banks and the Agent under Section 11.03) allowed in
such judicial proceeding; and

 

(b)          Collection
of Funds. to collect and receive any monies or other property payable or deliverable on any such claims and to distribute the
same;

 

and any custodian, receiver, assignee,
trustee, liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Bank to
make such payments to the Agent and, in the event that the Agent shall consent to the making of such payments directly to the Secured
Parties, to pay to the Agent any amount due for the reasonable compensation, expenses, disbursements and advances of the Agent
and its agents and counsel, and any other amounts due the Agent hereunder. Nothing contained herein shall be deemed to authorize
the Agent to authorize or consent to or accept or adopt on behalf of any Bank any plan of reorganization, arrangement, adjustment
or composition affecting the Obligations or the rights of any Bank or to authorize the Agent to vote in respect of the claim of
any Bank in any such proceeding.

 

10.12      Permitted
Release of Collateral.

 

(a)          Automatic
Release. If any Obligor sells any Collateral which is permitted to be disposed of under Section 8.05, the Liens in the Collateral
granted to the Agent under the Basic Document shall automatically terminate and the Collateral will be disposed of free and clear
of all Liens of the Agent.

 

(b)          Written
Release. The Agent is authorized to release of record, and shall release of record, any Liens encumbering any Collateral that
is permitted to be sold upon an authorized officer of the Company certifying in writing to the Agent that the proposed disposition
of Collateral is permitted under Section 8.05. To the extent the Agent is requested to execute any release documents or other documents
evidencing the termination of Liens in accordance with the immediately preceding sentence, the Agent shall do so promptly upon
request of the Company without the consent or further agreement of any Secured Party. If the disposition of Collateral is not permitted
under or pursuant to the Basic Documents, the Liens encumbering the Collateral may only be released in accordance with the provisions
of Section 11.04.

 

(c)          Other
Authorized Release and Subordination. The Agent is irrevocably authorized by the Secured Parties, without any consent or further
agreement of any Secured Party to: (i) subordinate or release the Liens granted to the Agent to secure the Obligations with respect
to any property which is permitted to be subject to a Lien of the type described in paragraphs (g) or (i) of Section 8.06
and (ii) release the Agent’s Liens when all the Commitments have terminated, all the Obligations have been paid in full and
otherwise satisfied and all Letters of Credit have expired or been terminated.

 

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10.13      Powers
and Immunities of Fronting Banks. Neither any Fronting Bank nor any of their respective Affiliates, officers, directors, agents
or employees shall be liable for any action taken or omitted to be taken by any of them hereunder or otherwise in connection with
any Basic Document except for its or their own gross negligence or willful misconduct. Without limiting the generality of the preceding
sentence, no Fronting Bank (a) shall have any duties or responsibilities except those expressly set forth in the Basic Documents,
and shall by reason of any Basic Document be a trustee or fiduciary for any Bank or for the Agent, (b) shall be required to initiate
any litigation or collection proceedings under any Basic Document, and (c) shall be responsible to any Bank or the Agent for any
recitals, statements, representations, or warranties contained in any Basic Document, or any certificate or other documentation
referred to or provided for in, or received by any of them under, any Basic Document, or for the value, validity, effectiveness,
enforceability, or sufficiency of any Basic Document or any other documentation referred to or provided for therein or for any
failure by any Person to perform any of its obligations thereunder. Each Fronting Bank: (a) may consult with legal counsel (including
counsel for the Company or the Agent), independent public accountants, and other experts selected by it and shall not be liable
for any action taken or omitted to be taken in good faith by it in accordance with the advice of such counsel, accountants, or
experts, and (b) shall incur no liability under or in respect of any Basic Document by acting upon any notice, consent, certificate,
or other instrument or writing believed by it to be genuine and signed or sent by the proper party or parties. As to any matters
not expressly provided for by any Basic Document, each Fronting Bank shall in all cases be fully protected in acting, or in refraining
from acting, hereunder in accordance with instructions signed by the Required Banks, and such instructions of the Required Banks
and any action taken or failure to act pursuant thereto shall be binding on all of the Banks and the Agent; provided, however,
that a Fronting Bank shall not be required to take any action which it reasonably believes exposes it to personal liability or
which it reasonably believes is contrary to any Basic Document or applicable Law.

 

10.14      Perfection
by Possession and Control; Deposit Accounts. The Agent hereby appoints each of the other Banks to serve as bailee to perfect
Agent’s Liens in any Collateral in the possession of any such other Bank. Each Bank possessing any Collateral agrees to so
act as bailee for the Agent in accordance with the terms and provisions hereof. In furtherance of the forgoing, each Bank acknowledges
that certain of the Obligors may maintain deposit accounts at one or more of the Banks (all such accounts, herein the “Obligor
Accounts”). Unless a Bank has entered into a control agreement with the Agent with respect to the Obligor Accounts (in
which event such control agreement shall take precedent over the provisions of this Section 10.14 with respect to the Obligor Accounts
covered thereby), each Bank agrees to hold its Obligor Accounts as bailee for the Agent to perfect the Agent’s Liens therein.
Prior to the receipt by a Bank of a written notice of an Event of Default from the Agent, the Obligors are entitled to make withdrawals
from the Obligor Accounts and make deposits into all the Obligor Accounts. When a Bank has received a written notice of an Event
of Default from the Agent and as long as such Event of Default exists, other than in respect of any payroll accounts, (a) the Agent
shall be the only party entitled to make withdrawals from or otherwise give any direction with respect to the Obligor Accounts
and each Bank agrees to comply with the instructions originated by the Agent directing deposition of the funds in or relating to
the Obligor Accounts it holds without further consent by any Obligor, and (b) each Bank shall transfer, in immediately available
funds by wire transfer to the Agent, the amount of the collected funds credited to the Obligor Accounts it holds and deliver to
the Agent all moneys or instruments relating thereto or held therein and any other Collateral at any time the Agent demands payment
or delivery thereof by such written notice to such Bank. Each Obligor agrees that each Bank is authorized to immediately deliver
all the Collateral to the Agent upon the Bank’s receipt of such notice from the Agent. No Bank (other than the Agent acting
for the benefit of the Secured Parties) shall exercise any right of set–off or banker’s lien against any Obligor Account
for any obligations other than the Obligations; provided that a Bank shall be entitled to charge, or set–off against an Obligor
Account and retain for its own account, any customary fees, costs, charges and expenses owed to it in connection with the opening,
operating and maintaining such Obligor Account and for the amount of any item credited to the Obligor Account that is subsequently
returned for any reason.

 

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10.15      Bank
Affiliates Rights. By accepting the benefits of the Basic Documents, any Affiliate of a Bank that is owed any Obligation is
bound by the terms of the Basic Documents. But notwithstanding the foregoing: (a) neither the Agent, any Bank nor any Obligor shall
be obligated to deliver any notice or communication required to be delivered to any Bank under any Basic Document to any Affiliate
of any Bank; and (b) no Affiliate of any Bank that is owed any Obligation shall be included in the determination of the Required
Banks or entitled to consent to, reject, or participate in any manner in any amendment, waiver or other modification of any Basic
Document. The Agent shall not have any liabilities, obligations or responsibilities of any kind whatsoever to any Affiliate of
any Bank who is owed any Obligation. The Agent shall deal solely and directly with the related Bank of any such Affiliate in connection
with all matters relating to the Basic Documents. The Obligation owed to such Affiliate shall be considered the Obligation of its
related Bank for all purposes under the Basic Documents and such Bank shall be solely responsible to the other parties hereto for
all the obligations of such Affiliate under any Basic Document.

 

10.16      Other
Agents. Certain of the Banks may have been designated as syndication agents, documentation agents or other similar designation
in recognition of the level of their respective Revolving Loan Commitments. No Bank, other than the Bank serving as Agent, is an
agent for the Banks nor shall any such Bank have any obligation hereunder other than those existing in its capacity as a Bank.

 

10.17      Intercreditor
Agreement.

 

(a)          Each
Bank hereby authorizes the Agent to enter into the Intercreditor Agreement on its behalf and agrees to be bound by the terms thereof.

 

(b)          Each
of the Company and the Banks hereby authorizes the Agent to share with the Uncommitted Facility Agent (and the lenders under the
Uncommitted Credit Agreement), copies of all Borrowing Base Certificates and all schedules and amendments thereto (including, without
limitation, summaries and detail of all credit extensions hereunder) and any amendments to this Agreement or the other Basic Documents.

 

Section
11.

Miscellaneous.

 

11.01      Waiver.
No failure on the part of the Agent or any Bank to exercise and no delay in exercising, and no course of dealing with respect to,
any right, power or privilege under this Agreement or any other Basic Document shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege under this Agreement or any other Basic Document preclude any other
or further exercise thereof or the exercise of any other right, power or privilege. The remedies provided herein are cumulative
and not exclusive of any remedies provided by Law. No waiver of any provision of any Basic Document or consent to any departure
by any Obligor therefrom shall in any event be effective unless the same shall be permitted by Section 11.04, and then such waiver
or consent shall be effective only in the specific instance and for the purpose for which given. Without limiting the generality
of the foregoing, the making of a Loan or issuance of a Letter of Credit shall not be construed as a waiver of any Default, regardless
of whether the Agent or any Bank may have had notice or knowledge of such Default at the time.

 

11.02      Notices.

 

(a)          General
Address for Notices. All notices, requests and other communications (“Communications”) provided for herein
and under the other Basic Documents (including any modifications of, or waivers, requests or consents under, this Agreement) shall
be given or made in writing (including by facsimile) delivered to the intended recipient at the “Address for Notices”
specified below its name on the signature pages hereof; or, as to any party, at such other address as shall be designated by such
party in a notice to each other party. Except as otherwise provided in this Agreement, all such communications shall be deemed
to have been duly given (i) if transmitted by facsimile, when the confirmation of transmission thereof is received by the transmitter,
(ii) when personally delivered or (iii) in the case of a mailed notice, upon receipt, in each case given or addressed as aforesaid.
The parties hereto agree that delivery of an executed counterpart of a signature page to this Agreement and each other Basic Document
by facsimile (or electronic transmission) shall be effective as delivery of an original executed counterpart of this Agreement
or such other Basic Document.

 

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(b)          Electronic
Communications. Communications to the Banks under the Basic Documents may be delivered or furnished by electronic communications
pursuant to procedures approved by the Agent; provided that the foregoing shall not apply to notices pursuant to Section 2.01 or
4.05 unless otherwise agreed by the Agent and the applicable Bank. The Agent or the Company may, in its discretion, agree to accept
notices and other communications to it under the Basic Documents by electronic communications pursuant to procedures approved by
it; provided that approval of such procedures may be limited to particular notices or Communications.

 

(c)          Electronic
Transmission System. The Company and the Banks agree that the Agent may make the Communications available to the Banks and
the Company by posting the Communications on Intralinks or a substantially similar electronic transmission system (the “Platform”).
THE PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE”. THE AGENT PARTIES (AS DEFINED BELOW) DO NOT WARRANT
THE ACCURACY OR COMPLETENESS OF THE COMMUNICATIONS, OR THE ADEQUACY OF THE PLATFORM AND EXPRESSLY DISCLAIM LIABILITY FOR ERRORS
OR OMISSIONS IN THE COMMUNICATIONS. NO WARRANTY OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY, INCLUDING, ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE
BY THE AGENT PARTIES IN CONNECTION WITH THE COMMUNICATIONS OR THE PLATFORM. IN NO EVENT SHALL THE AGENT OR ANY OF ITS AFFILIATES
OR ANY OF THEIR RESPECTIVE OFFICERS, DIRECTORS, AGENTS OR EMPLOYEES (COLLECTIVELY, THE “AGENT PARTIES”) HAVE ANY LIABILITY
TO ANY OBLIGOR, ANY BANK OR ANY OTHER PERSON OR ENTITY FOR DAMAGES OF ANY KIND, INCLUDING DIRECT OR INDIRECT, SPECIAL, INCIDENTAL
OR CONSEQUENTIAL DAMAGES, LOSSES OR EXPENSES (WHETHER IN TORT, CONTRACT OR OTHERWISE) ARISING OUT OF ANY OBLIGOR’S OR THE
AGENT’S TRANSMISSION OF COMMUNICATIONS THROUGH THE INTERNET, EXCEPT TO THE EXTENT THE LIABILITY OF ANY AGENT PARTY IS FOUND
IN A FINAL NON-APPEALABLE JUDGMENT BY A COURT OF COMPETENT JURISDICTION TO HAVE RESULTED FROM SUCH AGENT PARTY’S GROSS NEGLIGENCE
OR WILLFUL MISCONDUCT.

 

(d)          Communications
Through the Platform. Each Bank agrees that notice to it (as provided in the next sentence) specifying that the Communications
have been posted to the Platform shall constitute effective delivery of the Communications to such Bank for purposes hereof. Each
Bank agrees to provide to the Agent in writing (including by electronic communication), promptly after the date of this Agreement,
an e-mail address to which the foregoing notice may be sent by electronic transmission and agrees that the foregoing notice may
be sent to such e-mail address.

 

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11.03      Expenses,
etc. The Company agrees to pay or reimburse each of the Banks and the Agent for: (a) all reasonable and documented out-of-pocket
costs and expenses of the Agent (including the reasonable and documented fees and expenses of Emmet, Marvin & Martin, LLP)
in connection with (i) the negotiation, preparation, execution, delivery and administration of this Agreement and the other
Basic Documents and the extension of credit hereunder and (ii) the negotiation or preparation of any modification, supplement
or waiver of any of the terms of this Agreement or any of the other Basic Documents (whether or not consummated); (b) all
reasonable out-of-pocket costs and expenses of each Bank and the Agent (including the reasonable fees and expenses of legal counsel)
in connection with (i) any Default and any enforcement, protection of rights or collection proceedings resulting therefrom,
including all manner of participation in or other involvement with (x) bankruptcy, insolvency, receivership, foreclosure, winding
up or liquidation proceedings, (y) judicial or regulatory proceedings and (z) workout, restructuring or other negotiations
or proceedings (whether or not the workout, restructuring or transaction contemplated thereby is consummated), (ii) the enforcement
of this Section 11.03 and (iii) the issuance, amendment, renewal or extension of any Letter of Credit or demand for payment
thereunder; and (c) all transfer, stamp, documentary or other similar taxes, assessments or charges levied by any governmental
or revenue authority in respect of this Agreement or any of the other Basic Documents or any other document referred to herein
or therein and all costs, expenses, taxes, assessments and other charges incurred in connection with any filing, registration,
recording or perfection of any security interest contemplated by any Basic Document or any other document referred to therein.

 

The Company hereby agrees
to indemnify the Agent and each Bank and their respective directors, officers, employees, attorneys, partners and agents (each,
an “Indemnitee”) from, and hold each of them harmless against, any and all losses, liabilities, claims, damages
or expenses incurred by or asserted against any of them arising out of or by reason of (i) the execution or delivery of this
Agreement, any other Basic Document or any agreement or instrument contemplated hereby or thereby, the performance by the parties
hereto of their respective obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby,
(ii) any Loan or Letter of Credit or the use or proposed use of the proceeds therefrom (including any refusal by any Issuing
Bank to honor a demand for payment under a Letter of Credit if the documents presented in connection with such demand do not strictly
comply with the terms of such Letter of Credit), (iii) any actual or alleged presence or release of Materials of Environmental
Concern on or from any property owned or operated by the Company or any of its Subsidiaries, or any liability under any Environmental
Law related in any way to the Company or any of its Subsidiaries, or (iv) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by the Company, and regardless of whether any Indemnitee hereunder is a party thereto, provided that such Indemnity
shall not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses
(x) are determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted from the gross
negligence or willful misconduct of such Indemnitee or (y) result from a claim brought by the Company or any other Obligor
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under any other Basic Document,
if the Company or such Obligor has obtained a final and nonappealable judgment in its favor on such claim as determined by a court
of competent jurisdiction. This Section 11.03 shall not apply with respect to Taxes to the extent that they are subject to Section
5.06 hereof.

 

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11.04      Amendments,
Etc. (a) Neither this Agreement nor any other Basic Document nor any provision hereof or thereof may be waived, amended or
modified except, (x) pursuant to an Increase and New Bank Agreement executed in accordance with Section 2.05(d) which only needs
to be signed by the Company, the Agent and the Banks increasing or providing new Revolving Loan Commitments thereunder and (y)
in the case of this Agreement, pursuant to an agreement or agreements in writing entered into by the Company, the Agent and the
Required Banks or, in the case of any other Basic Document, pursuant to an agreement or agreements in writing entered into by the
Agent and the Obligor or Obligors that are parties thereto, in each case with the consent of the Required Banks; provided that
no such agreement shall (i) increase any Commitment of any Bank without the written consent of such Bank, (ii) reduce the principal
amount of any Loan or Reimbursement Obligations or reduce the amount or rate of interest thereon, or reduce the amount or rate
of any fees payable hereunder, without the written consent of each Bank affected thereby, (iii) postpone the scheduled date or
due date of the payment of the principal amount of any Loan (including any prepayment required by Section 2.11), Reimbursement
Obligations, or any interest thereon, or any fees payable hereunder, or reduce the amount of, waive or excuse any such payment,
or postpone the scheduled date of expiration of any Commitment, without the written consent of each Bank affected thereby, (iv)
alter Section 4.07 or 4.08 or the manner in which payments or prepayments of principal, interest or other Obligations shall be
applied as among the Secured Parties, without the written consent of each Bank, (v) change any of the provisions of this Section,
the definition of the term “Required Banks”, the last sentence of Section 4.09 or any other provision hereof specifying
the number or percentage of Banks required to waive, amend or modify any rights hereunder or make any determination or grant any
consent hereunder, without the written consent of each Bank, (vi) modify Section 4.03 without the consent of each Bank, (vii) amend
the definition of the term “Borrowing Base” or any defined term used therein or Section 2.11 without the consent of
each Bank, (viii) release any Guarantor from any of its guarantee obligations without the written consent of each Bank, (ix) amend,
modify or waive the Intercreditor Agreement without the written consent of each Bank (other than, for the avoidance of doubt, any
Affiliate of an Issuing Bank which has issued a Letter of Credit pursuant to the last sentence of the definition of Issuing Bank)
or (x) except as permitted by Section 10.12, under the Intercreditor Agreement or in connection with the exercise of its rights
and remedies therein after an Event of Default, release all or substantially all of the Collateral (or any Collateral, the release
of which would result in an excess of the then aggregate outstanding amount of the Credit Exposure over the Borrowing Base) without
the written consent of each Bank; and provided further, that no such agreement shall amend, modify or otherwise affect the rights
or duties of the Agent or any Fronting Bank hereunder without the prior written consent of the Agent or the applicable Fronting
Bank, as the case may be.

 

(b)          Notwithstanding
anything to the contrary herein, any Bank that is a Defaulting Bank shall not have any right to approve or disapprove of any amendment,
waiver or consent hereunder; provided, however, except as otherwise provided in Section 4.12, (i) the Revolving
Loan Commitment of such Defaulting Bank may not be increased or extended without the consent of such Defaulting Bank, (ii) the
Revolving Loan Commitment Percentage of such Defaulting Bank may not be increased without the consent of such Defaulting Bank,
and (iii) no payment to such Defaulting Bank shall be decreased or postponed without the consent of such Defaulting Bank.

 

11.05      Successors
and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and permitted assigns (including any Affiliate of an Issuing Bank that issues any Letter of Credit, any Affiliate of a Bank who
is otherwise owed any of the Obligations and any party entitled to indemnification hereunder), except that (i) no Obligor may assign
or otherwise transfer any of its rights or obligations hereunder or under any other Basic Document without the prior written consent
of each Bank (and any attempted assignment or transfer by any Obligor without such consent shall be null and void) and (ii) no
Bank may assign or otherwise transfer any of its rights or obligations hereunder except in accordance with Section 11.06 (and any
attempted assignment or transfer by any Bank that is not in accordance with this Section shall be null and void). Nothing in this
Agreement, expressed or implied, shall be construed to confer upon any Person (other than the parties hereto, their respective
successors and assigns permitted hereby (including any Affiliate of an Issuing Bank that issues any Letter of Credit and any Affiliate
of a Bank who is otherwise owed any of the other Obligations), and, to the extent expressly contemplated hereby, officers, directors,
attorneys, agents, and employees of each of the Agent and the Banks) any legal or equitable right, remedy or claim under or by
reason of this Agreement.

 

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11.06      Assignments
and Participations.

 

(a)          Assignments
by Banks.

 

(i)          Assignments
Generally. Subject to the conditions set forth in clause (ii) below, any Bank may assign to one or more assignees all or a
portion of its rights and obligations under this Agreement (including all or a portion of its Commitment and the Loans at the time
owing to it) with the prior written consent (such consent not to be unreasonably withheld or delayed) of:

 

(A)         the
Company, provided that no consent of the Company shall be required for an assignment to a Bank, an Affiliate of a Bank or an Approved
Fund or, if an Event of Default exists, any other assignee; and

 

(B)         the
Agent, provided that no consent of the Agent shall be required for an assignment of any Commitment to an assignee that is a Bank
with a Commitment immediately prior to giving effect to such assignment.

 

(ii)         Certain
Conditions to Assignments. Assignments by the Banks shall be subject to the following additional conditions:

 

(A)         except
in the case of an assignment to a Bank or an Affiliate of a Bank or an assignment of the entire remaining amount of the assigning
Bank’s Commitment or Loans, the amount of the Commitment or Loans of the assigning Bank subject to each such assignment (determined
as of the date the Assignment and Assumption with respect to such assignment is delivered to the Agent) shall not be less than
$5,000,000 unless each of the Company and the Agent otherwise consent, provided that no such consent of the Company shall be required
if an Event of Default exists;

 

(B)         each
partial assignment of any Commitment or Loans shall be made as an assignment of a proportionate part of all the assigning Bank’s
rights and obligations under this Agreement in respect of such Commitment and Loans;

 

(C)         the
parties to each assignment shall execute and deliver to the Agent an Assignment and Assumption in substantially the form of Exhibit
E hereto, together with a processing and recordation fee of $3,500; and

 

(D)         the
assignee, if it shall not already be a Bank, shall deliver to the Agent an Administrative Questionnaire.

 

(iii)        Effectiveness
of Assignments. Subject to acceptance and recording thereof pursuant to paragraphs (b) and (c) below, from and after the effective
date specified in each Assignment and Assumption, the assignee thereunder shall be a party hereto and, to the extent of the interest
assigned by such Assignment and Assumption, have the rights and obligations of a Bank under this Agreement, and the assigning Bank
thereunder shall, to the extent of the interest assigned by such Assignment and Assumption, be released from its obligations under
this Agreement (and, in the case of an Assignment and Assumption covering all of the assigning Bank’s rights and obligations
under this Agreement, such Bank shall cease to be a party hereto but shall continue to be entitled to the rights referred to in
Sections 5.01, 5.04, 5.06 and 11.03). Any assignment or transfer by a Bank of rights or obligations under this Agreement that does
not comply with this Section shall be treated for purposes of this Agreement as a sale by such Bank of a participation in such
rights and obligations in accordance with paragraph (d) below. Delivery of an executed counterpart of a signature page to an Assignment
and Assumption by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of
thereof.

 

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(b)          Maintenance
of Register by the Agent. The Agent, acting for this purpose as an agent of the Company, shall maintain a copy of each Assignment
and Assumption delivered to it and a register for the recordation of the names and addresses of the Banks, and the Commitment of,
and principal amount of the Loans owing to, each Bank pursuant to the terms hereof from time to time (the “Register”).
The entries in the Register shall be conclusive, and the Company, the Agent and the Banks may treat each Person whose name is recorded
in the Register pursuant to the terms hereof as a Bank hereunder for all purposes of this Agreement, notwithstanding notice to
the contrary. The Register shall be available for inspection by the Company and any Bank, at any reasonable time and from time
to time, upon reasonable prior notice.

 

(c)          Effectiveness
of Assignments. Upon its receipt of a duly completed Assignment and Assumption executed by an assigning Bank and an assignee,
the assignee’s completed Administrative Questionnaire (unless the assignee shall already be a Bank hereunder), the processing
and recordation fee referred to in paragraph (a) above and any written consent to such assignment required by said paragraph (a),
the Agent shall accept such Assignment and Assumption and record the information contained therein in the Register. No assignment
shall be effective for purposes of this Agreement unless it has been recorded in the Register as provided in this paragraph (c).

 

(d)          Participations.
Any Bank may, without the consent of the Company or the Agent, sell participations to one or more banks or other entities (a “Participant”)
in all or a portion of such Bank’s rights and obligations under this Agreement (including all or a portion of its Commitment
and the Loans owing to it); provided that (i) such Bank’s obligations under this Agreement shall remain unchanged, (ii) such
Bank shall remain solely responsible to the other parties hereto for the performance of such obligations and (iii) the Obligors,
the Agent and the Banks shall continue to deal solely and directly with such Bank in connection with such Bank’s rights and
obligations under this Agreement. Any agreement or instrument pursuant to which a Bank sells such a participation shall provide
that such Bank shall retain the sole right to enforce this Agreement and to approve any amendment, waiver or other modification
of any provision of this Agreement; provided that such agreement may provide that such Bank will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in the first proviso to Section 11.04 that affects
such Participant. Subject to paragraph (e) below, the Company agrees that each Participant shall be entitled to the benefits of
Sections 5.01, 5.04 and 5.06, to the same extent as if it were a Bank and had acquired its interest by assignment pursuant to paragraph
(a) above. To the extent permitted by Law, each Participant also shall be entitled to the benefits of Section 4.07(a) as though
it were a Bank, provided such Participant agrees to be subject to Section 4.07(b) as though it were a Bank hereunder.

 

(e)          Limitations
on Rights of Participants. A Participant shall not be entitled to receive any greater payment under Section 5.01 or 5.06 than
the applicable Bank would have been entitled to receive with respect to the participation sold to such Participant, unless the
sale of the participation to such Participant is made with the Company’s prior written consent. A Participant that would
be a Foreign Bank if it were a Bank shall not be entitled to the benefits of Section 5.06 unless the Company is notified of the
participation sold to such Participant and such Participant agrees, for the benefit of the Company, to comply with Section 5.06
as though it were a Bank.

 

(f)      
    Certain Pledges. Any Bank may at any time pledge or assign a security interest in all or any
portion of its rights under this Agreement to secure obligations of such Bank, including any such pledge or assignment to a
Federal Reserve Bank, and this Section shall not apply to any such pledge or assignment of a security interest; provided that
no such pledge or assignment of a security interest shall release a Bank from any of its obligations hereunder or substitute
any such assignee for such Bank as a party hereto.

 

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(g)          No
Assignments to the Company or Affiliates. Anything in this Section to the contrary notwithstanding, no Bank may assign or participate
any interest in any Loan or Reimbursement Obligations held by it hereunder to the Company or any of its Affiliates or Subsidiaries
without the prior consent of each Bank.

 

11.07      Survival.
The obligations of the Company under Sections 5.01, 5.04, 5.06 and 11.03 and the obligations of the Banks under Section 10.05 hereof
shall survive the repayment of the Loans and the Reimbursement Obligations and the termination of the Commitments. In addition,
each representation and warranty made, or deemed to be made by a notice of any extension of credit (whether by means of a Loan
or a Letter of Credit), herein or pursuant hereto shall survive the making of such representation and warranty, and no Bank shall
be deemed to have waived, by reason of making any extension of credit hereunder (whether by means of a Loan or a Letter of Credit),
any Default that may arise by reason of such representation or warranty proving to have been false or misleading, notwithstanding
that such Bank or the Agent may have had notice or knowledge or reason to believe that such representation or warranty was false
or misleading at the time such extension of credit was made.

 

11.08      Captions.
The table of contents and captions and section headings appearing herein are included solely for convenience of reference and are
not intended to affect the interpretation of any provision of this Agreement.

 

11.09      Counterparts.
This Agreement may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall
constitute an original, but all of which when taken together shall constitute a single contract. This Agreement, the other Basic
Documents and any separate letter agreements with respect to fees payable to the Agent and the Bank constitute the entire contract
between and among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings,
oral or written, relating to the subject matter hereof. Except as provided in Section 6.01, this Agreement shall become effective
when it shall have been executed by the Agent and when the Agent shall have received counterparts hereof which, when taken together,
bear the signatures of each of the other parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page to this Agreement by
telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement.

 

11.10      Governing
Law; Submission to Jurisdiction. Each of this Agreement and each other Basic Document will be governed by, and construed in
accordance with, the internal Laws of the state of New York (including for such purpose sections 5-1401 and 5-1402 of the General
Obligations Law of the State of New York). The Company hereby submits to the nonexclusive jurisdiction of the United States District
Court for the Southern District of New York and of any New York state court sitting in New York City for the purposes of all legal
proceedings arising out of or relating to this Agreement, any other Basic Document or the transactions contemplated hereby or thereby.
The Company irrevocably waives, to the fullest extent permitted by applicable Law, any objection that it may now or hereafter have
to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such
a court has been brought in an inconvenient forum. The Company hereby further irrevocably consents to the service of process in
any such legal proceedings in said courts by the mailing thereof by the Agent or any Bank by registered or certified mail, postage
prepaid, at its address set forth beneath its signature hereto.

 

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11.11      Waiver
of Jury Trial. EACH OF THE COMPANY, THE AGENT AND THE BANKS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY OTHER BASIC DOCUMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

11.12      Severability.
Any provision of this Agreement held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability
of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate
such provision in any other jurisdiction.

 

11.13      Independence
of Covenants. All covenants and other agreements contained in this Agreement or any other Basic Document shall be given independent
effect so that, if a particular action or condition is not permitted by any of such covenants or other agreements, the fact that
such action or condition would be permitted by an exception to, or otherwise be within the limitations of, another covenant or
other agreement shall not avoid the occurrence of a Default or an Event of Default if such action is taken or such condition exists.

 

11.14      PATRIOT
ACT PROVISION. Each of the Agent and each Bank hereby notifies each Obligor that pursuant to the requirements of the USA Patriot
Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001)) (the “Act”), it is required to obtain, verify
and record information that identifies each Obligor and other information that will allow the Agent and such Bank to identify each
Obligor in accordance with the Act.

 

11.15      No
Fiduciary Relationship. The relationship between the Company and the other Obligors on the one hand and the Agent and each
Bank on the other is solely that of debtor and creditor, and neither the Agent nor any Bank has any fiduciary or other special
relationship with the Company or any other Obligors, and no term or condition of any of the Basic Documents shall be construed
so as to deem the relationship between the Company and the other Obligors on the one hand and the Agent and each Bank on the other
to be other than that of debtor and creditor.

 

11.16      Construction.
The Company, each other Obligor (by its execution of the Basic Documents to which it is a party), the Agent, each Bank acknowledges
that each of them has had the benefit of legal counsel of its own choice and has been afforded an opportunity to review the Basic
Documents with its legal counsel and that the Basic Documents shall be construed as if jointly drafted by the parties thereto.

 

11.17      Interest
Rate Limitation.

 

(a)          Limitation
to Maximum Rate; Recapture. No interest rate specified in any Basic Document shall at any time exceed the Maximum Rate. If
at any time the interest rate (the “Contract Rate”) for any obligation under the Basic Documents shall exceed
the Maximum Rate, thereby causing the interest accruing on such obligation to be limited to the Maximum Rate, then any subsequent
reduction in the Contract Rate for such obligation shall not reduce the rate of interest on such obligation below the Maximum Rate
until the aggregate amount of interest accrued on such obligation equals the aggregate amount of interest which would have accrued
on such obligation if the Contract Rate for such obligation had at all times been in effect. As used herein, the term “Maximum
Rate” means, at any time with respect to any Bank, the maximum rate of nonusurious interest under applicable Law that
such Bank may charge the Company. The Maximum Rate shall be calculated in a manner that takes into account any and all fees, payments,
and other charges contracted for, charged, or received in connection with the Basic Documents that constitute interest under applicable
Law. Each change in any interest rate provided for herein based upon the Maximum Rate resulting from a change in the Maximum Rate
shall take effect without notice to the Company at the time of such change in the Maximum Rate.

 

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(b)          Cure
Provisions. No provision of any Basic Document shall require the payment or the collection of interest in excess of the maximum
amount permitted by applicable Law. If any excess of interest in such respect is hereby provided for, or shall be adjudicated to
be so provided, in any Basic Document or otherwise in connection with the transactions contemplated under the Basic Documents,
the provisions of this Section shall govern and prevail and neither the Company nor the sureties, guarantors, successors, or assigns
of the Company shall be obligated to pay the excess amount of such interest or any other excess sum paid for the use, forbearance,
or detention of sums loaned pursuant hereto. In the event any Bank ever receives, collects, or applies as interest any such sum,
such amount which would be in excess of the maximum amount permitted by applicable Law shall be applied as a payment and reduction
of the principal of the obligations outstanding hereunder, and, if the principal of the obligations outstanding hereunder has been
paid in full, any remaining excess shall forthwith be paid to the Company. In determining whether or not the interest paid or payable
exceeds the Maximum Rate, the Company and each Bank shall, to the extent permitted by applicable Law, (i) characterize any non-principal
payment as an expense, fee, or premium rather than as interest, (ii) exclude voluntary prepayments and the effects thereof, and
(iii) amortize, prorate, allocate, and spread in equal or unequal parts the total amount of interest throughout the entire contemplated
term of the obligations outstanding hereunder so that interest for the entire term does not exceed the Maximum Rate.

 

11.18      Waiver
of Consequential Damages, etc. To the extent permitted by applicable Law, no Obligor shall assert, and each Obligor hereby
waives, any claim against Agent, any Bank and any of their respective directors, officers, partners, employees, attorneys and agents,
on any theory of liability, for special, indirect, consequential or punitive damages (as opposed to direct or actual damages) arising
out of, in connection with, or as a result of, this Agreement or any other Basic Documents, the transactions contemplated hereby
or thereby, any Loan or Letter of Credit or the use of the proceeds thereof.

 

11.19      Existing
Obligations. The Company hereby acknowledges, confirms and agrees that it is indebted to the Banks for all the “Obligations”
(as defined in the Existing Credit Agreement) under the Existing Credit Agreement, as of the close of business on June 19, 2014,
in the aggregate principal amount of $69,500,000 in respect of “Loans” (as defined in the Existing Credit Agreement)
and in the aggregate face amount of $72,158,426.10 in respect of “Letters of Credit” (as defined in the Existing Credit
Agreement), together with all accrued and unpaid interest thereon (to the extent applicable), and all fees, costs, expenses and
other charges relating thereto, all of which are unconditionally owing by the Company to the “Banks” (as defined in
the Existing Credit Agreement), without offset, defense or counterclaim of any kind, nature or description whatsoever.

 

11.20      Acknowledgement
of Security Interest and Basic Documents; Reaffirmation of Account Control Agreements.

 

(a)          The
Company hereby acknowledges, confirms and agrees that the Agent has had and shall on and after the date hereof continue to have,
for itself and the ratable benefit of the Banks (and their Affiliates in respect of Hedging Obligations), a security interest in
and Lien upon the Collateral heretofore granted to the Agent (or its predecessors in whatever capacity) pursuant to the Basic Documents
to secure the Obligations.

 

(b)          The
Liens and security interest of the Agent in the Collateral shall be deemed to be continuously granted and perfected from the earliest
date of the granting and perfection of such Liens and security interests to the Agent (and its predecessors, whether under the
Existing Credit Agreement, this Agreement or any of the other Basic Documents (as defined in the Existing Credit Agreement or this
Agreement)).

 

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(c)          The
Company hereby reaffirms its obligations, covenants and agreements under each Account Control Agreement executed by it prior to
the date hereof and acknowledges and agrees that all such obligations, covenants and agreements are continuing and shall continue
in full force and effect on and after the date hereof in accordance with the terms thereof.

 

11.21      Basic
Documents. The Company hereby acknowledges, confirms and agrees that as of the date hereof: (i) the Existing Credit Agreement
and each of the other “Basic Documents” (as defined in the Existing Credit Agreement) were duly executed and delivered
by the Company or its Subsidiaries, as applicable, and are in full force and effect, (ii) the agreements and obligations of the
Company and its Subsidiaries contained in the Existing Credit Agreement and the other “Basic Documents” (as defined
in the Existing Credit Agreement) constitute the legal, valid and binding obligations of Company or its Subsidiaries, as applicable,
enforceable against them in accordance with their respective terms, and (iii) subject to Section 11.22, the Banks (and their Affiliates
in respect of Hedging Obligations) and the Agent are entitled to all of the rights and remedies provided for in the Existing Credit
Agreement and the “Basic Documents” (as defined in the Existing Credit Agreement).       

 

11.22      Acknowledgments,
Amendment and Restatement. Effective on the Closing Date, this Agreement shall constitute an amendment and restatement in its
entirety of the Existing Credit Agreement. Each of the undersigned Banks hereby consents pursuant to Section 11.04 of the
Existing Credit Agreement to all of the amendments herein and in the other Basic Documents executed in connection herewith to the
Existing Credit Agreement and the other Basic Documents (as defined in the Existing Credit Agreement) as in effect immediately
prior to the Closing Date (collectively, the “Existing Loan Documents”). The parties hereto acknowledge and agree that
(a) this Agreement and the other Basic Documents executed and delivered in connection herewith do not constitute a novation, payment,
satisfaction, reborrowing, or termination of the Company’s Obligations or any Credit Exposure (under and as defined in the
Existing Credit Agreement and the Existing Loan Documents) previously made available to the Company under the Existing Credit Agreement
and outstanding on the Closing Date; (b) such Obligations and Credit Exposure (under and as defined in the Existing Credit Agreement)
are in all respects continuing as Obligations and Credit Exposure under this Agreement with only the terms thereof being modified
as provided in this Agreement and the other Basic Documents; (c) the Liens and security interests as granted under the Security
Documents (as defined in the Existing Credit Agreement) securing payment of such Obligations (as defined in the Existing Credit
Agreement) are in all respects continuing and in full force and effect and secure the payment of the Obligations with only the
terms of certain of such Security Documents (as defined in the Existing Credit Agreement) being modified as provided in the Security
Documents and (d) all references in the Basic Documents to the Existing Credit Agreement shall be deemed references to the
Existing Credit Agreement as amended and restated hereby, and as further amended, supplemented or otherwise modified from time
to time.

 

11.23      Reallocation
of Outstanding Credit Exposure. Each of the Banks hereby agrees as follows: 

 

(i)          Each
Bank (other than New Closing Banks) shall pay to the Agent on the Closing Date, in immediately available funds, an amount equal
to the amount, if any, by which the sum of such Bank’s Fronting Exposure (other than Letter of Credit Liabilities under clause
(a) of the definition of such term herein) plus its Revolving Loan Commitment Percentage of the aggregate principal amount
of all Revolving Loans, in each case outstanding immediately upon the effectiveness of the Closing Date (before giving effect to
any new extensions of credit under this Agreement) exceeds the “Credit Exposure” (under and as defined in the Existing
Credit Agreement) (other than Letter of Credit Liabilities under clause (a) of the definition of such term herein) of such Bank
immediately prior to the Closing Date (after giving effect to any reduction of the “Commitments” (under and as defined
in the Existing Credit Agreement) required under Section 6.01(b) hereof). Such amount paid by any such Bank shall be deemed the
purchase price for the acquisition by such Bank of such additional amount of Credit Exposure and corresponding Commitments from
the other Banks, as applicable. The Agent shall distribute such amounts as received from such Banks as may be necessary so that
the Credit Exposure is held by the Banks in accordance with their respective Revolving Loan Commitment Percentages.

 

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(ii)         Each
New Closing Bank shall pay to the Agent on the Closing Date, in immediately available funds, an amount equal to the amount of such
New Closing Bank’s Fronting Exposure (other than Letter of Credit Liabilities under clause (a) of the definition of such
term herein) plus its Revolving Loan Commitment Percentage of the aggregate principal amount of all Revolving Loans to be
outstanding immediately upon the Closing Date (before giving effect to any new extensions of credit under this Agreement. Such
amount paid by any such New Closing Bank shall be deemed the purchase price for the acquisition by such New Closing Bank of such
amount of Credit Exposure and corresponding Commitments from the other Banks, as applicable. The Agent shall distribute such amounts
as received from the New Closing Banks as may be necessary so that the Credit Exposure is held by the Banks in accordance with
their respective Revolving Loan Commitment Percentages.

 

(iii)        Each
Bank which receives a payment in connection with clause (i) or (ii) above (each, a “Selling Bank”) shall be
deemed to have sold and assigned, without recourse to such Selling Bank, to the other applicable Banks (each, a “Purchasing
Bank”), and such Purchasing Banks shall be deemed to have purchased and assumed without recourse to the Selling Banks,
Credit Exposure in amounts such that after giving effect thereto each Bank shall hold Credit Exposure in accordance with their
respective Revolving Loan Commitment Percentages.

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement
to be duly executed and delivered as of the day and year first above written.

 

	 	EMPIRE RESOURCES, INC.
	 	 
	 	By:	/s/ Sandra Kahn
	 	 	Sandra R. Kahn, Vice President
	 	 	 
	 	Address for Notices:
	 	 
	 	Empire Resources, Inc.
	 	One Parker Plaza
	 	Fort Lee, New Jersey  07024
	 	Attention:  Ms. Sandra R. Kahn
	 	Facsimile No.:  (201) 944-2226
	 	Telephone No.:  (201) 944-2200

 

    	 

    	 

    

 

	 	COÖPERATIEVE CENTRALE  RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent, Swing Line Bank, Issuing Bank and as a Bank
	 	 	 
	 	By: 	/s/ Chan K. Park
	 	 	Name: Chan K. Park
	 	 	Title:   Managing Director
	 	 	 
	 	By:	/s/ Xander Willemsen
	 	 	Name: Xander Willemsen
	 	 	Title:   Executive Director
	 	 	 
	 	Address for Notices:
	 	 
	 	c/o Rabobank International
	 	245 Park Avenue
	 	New York, New York 10167
	 	Attention: Frank Imperato
	 	Telecopy No. (212) 916-3731
	 	Telephone No. (212) 808-6815
	 	 
	 	With copies to:
	 	 
	 	Rabobank International
	 	245 Park Avenue
	 	New York, New York 10167
	 	Attention: Xander Willemsen
	 	Telecopy No.: (914) 304-9321
	 	Telephone No.: (212) 574-7377
	 	 
	 	and
	 	 
	 	Rabobank International
	 	245 Park Avenue
	 	New York, New York 10167
	 	Attention: Naoko Kojima
	 	Telecopy No.: (212) 808-2578
	 	Telephone No.: (212) 808-6812

 

    	 

    	 

    

			

 

	 	BNP PARIBAS, as Syndication Agent and a Bank
	 	 	 
	 	By:	/s/ Karlien Zumpolle
	 	 	Name: Karlien Zumpolle
	 	 	Title:   Vice President
	 	 	 
	 	By:	/s/ Bradley Dingwall
	 	 	Name: Bradley Dingwall
	 	 	Title:   Director
	 	 	 
	 	Address for Notices:
	 	 
	 	787 Seventh Avenue, 9th Floor
	 	New York, New York 10019
	 	Attention:  
	 	Facsimile No.: 
	 	Telephone No.: 
	 	Email: 

 

    	 

    	 

    

 

	 	SOCIÉTÉ GÉNÉRALE S.A., as a Bank
	 	 	 
	 	By: 	/s/ Barbara Paulsen
	 	 	Name: Barbara Paulsen
	 	 	Title:   Managing Director
	 	 	 
	 	By: 	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Address for Notices:
	 	 
	 	245 Park Avenue
	 	New York, NY 10167
	 	Attention:  
	 	Facsimile No.: 
	 	Telephone No.: 
	 	Email: 

 

    	 

    	 

    

 

	 	BROWN BROTHERS HARRIMAN & CO., as a Bank
	 	 	 
	 	By:	/s/ Paul Feldman
	 	 	Name: Paul Feldman
	 	 	Title:   Managing Director
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	Address for Notices:
	 	 
	 	140 Broadway
	 	New York, New York 10005
	 	Attention:  
	 	Facsimile No.: 
	 	Telephone No.: 
	 	Email:

 

    	 

    	 

    

 

	 	RB INTERNATIONAL FINANCE (USA) LLC, as a Bank
	 	 	 
	 	By:	/s/ Astrid Wilke
	 	 	Name: Astrid Wilke
	 	 	Title:   Group Vice President
	 	 	 
	 	By:	/s/ Katrin Lange-Hornby
	 	 	Name: Katrin Lange-Hornby
	 	 	Title:   Vice President
	 	 	 
	 	Address for Notices:
	 	 
	 	1133 Avenue of the Americas, 16th Floor
	 	New York, New York 10036
	 	Attention:  
	 	Facsimile No.: 
	 	Telephone No.: 
	 	Email:

 

    	 

    	 

    

 

	 	ABN AMRO CAPITAL USA LLC, as a Bank
	 	 	 
	 	By:	/s/ Jaime Matos
	 	 	Name: Jaime Matos
	 	 	Title:   Vice President
	 	 	 
	 	By:	/s/ Urvashi Zutshi
	 	 	Name: Urvashi Zutshi
	 	 	Title:   Managing Director
	 	 	 
	 	Address for Notices:
	 	 
	 	100 Park Avenue
	 	New York, New York 10017
	 	Attention:  
	 	Facsimile No.: 
	 	Telephone No.: 
	 	Email:

 

    	 

    	 

    

 

Index to Exhibits
and Schedules

 

	EXHIBIT A	–	Form of Note
	EXHIBIT B	–	Form of Borrowing Base Certificate
	EXHIBIT C	–	Form of Security Agreement
	EXHIBIT D	–	Form of Subsidiary Guarantee
	EXHIBIT E	–	Form of Assignment and Assumption
	EXHIBIT F	–	Form of Increase and New Bank Agreement
	EXHIBIT G	–	Form of Compliance Certificate
	EXHIBIT H	–	Intentionally omitted
	EXHIBIT I	–	Form of Borrowing Request
	EXHIBIT J	–	Form of Notice of Prepayment, Conversion and Continuation
	EXHIBIT K	–	Subordination Terms
	EXHIBIT L	–	Intentionally omitted
	EXHIBIT M	—	Form of Intercreditor Agreement
	 	 	 
	SCHEDULE A	–	Commitments
	SCHEDULE I	–	Indebtedness
	SCHEDULE II	–	Investments
	SCHEDULE III	–	Subsidiaries
	SCHEDULE IV	—	Limitations on Dividend Clause and Negative Pledge Clauses
	SCHEDULE V	-	Credit Insurance

 

    	 

    	 

    

 

EXHIBIT A

FORM OF

PROMISSORY
NOTE

 

	$[Principal Amount]	[Date]
	 	New York, New York

 

FOR VALUE RECEIVED,
EMPIRE RESOURCES, INC., a Delaware corporation (the “Company”), hereby promises to pay to [Insert name of
Bank] (the “Bank”), for account of its respective Applicable Lending Offices provided for by the Credit
Agreement referred to below, the principal sum of $[Principal Amount] (or such lesser amount as shall equal the aggregate
unpaid principal amount of the Loans made by the Bank to the Company under the Credit Agreement), in lawful money of the United
States of America and in immediately available funds, on the dates and in the principal amounts provided in the Credit Agreement,
and to pay interest on the unpaid principal amount of each such Loan, at such office, in like money and funds, for the period commencing
on the date of such Loan until such Loan shall be paid in full, at the rates per annum and on the dates provided in the Credit
Agreement.

 

The date, amount, Type,
interest rate and duration of Interest Period (if applicable) of each Loan made by the Bank to the Company, and each payment made
on account of the principal thereof, shall be recorded by the Bank on its books, provided that the failure of the Bank to
make any such recordation shall not affect the obligations of the Company to make a payment when due of any amount owing under
the Credit Agreement or hereunder in respect of the Loans made by the Bank.

 

This Note (i) is one
of the Notes referred to in the Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented
or otherwise modified and in effect from time to time, the “Credit Agreement”) among the Company, the banks
from time to time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”,
New York Branch, as Agent, (ii) is entitled to the benefits of the Credit Agreement and (iii) evidences Loans made by the Bank
under the Credit Agreement. Terms used but not defined in this Note have the respective meanings assigned to them in the Credit
Agreement.

 

The Credit Agreement
provides for the acceleration of the maturity of this Note upon the occurrence of certain events and for prepayments of Loans upon
the terms and conditions specified therein.

 

Except as permitted
by Section 11.06 of the Credit Agreement, this Note may not be assigned by the Bank to any other Person.

 

    	 

    	 

    

  

This Note shall be
governed by, and construed in accordance with, the law of the State of New York.

 

	 	EMPIRE RESOURCES, INC.
	 	 	 
	 	By	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

  

FORM OF

SWING LINE
NOTE

 

	$[Principal Amount]	[Date]
	 	New York, New York

 

FOR VALUE RECEIVED,
EMPIRE RESOURCES, INC., a Delaware corporation (the “Company”), hereby promises to pay to [Insert name of
Bank] (the “Swing Line Bank”), for account of its respective Applicable Lending Offices provided for by
the Credit Agreement referred to below, the principal sum of $[Principal Amount] (or such lesser amount as shall equal the
aggregate unpaid principal amount of the Swing Line Loans made by the Swing Line Bank to the Company under the Credit Agreement),
in lawful money of the United States of America and in immediately available funds, on the dates and in the principal amounts provided
in the Credit Agreement, and to pay interest on the unpaid principal amount of each such Swing Line Loan, at such office, in like
money and funds, for the period commencing on the date of such Swing Line Loan until such Swing Line Loan shall be paid in full,
at the rates per annum and on the dates provided in the Credit Agreement.

 

The date and amount
of each Swing Line Loan made by the Swing Line Bank to the Company, and each payment made on account of the principal thereof,
shall be recorded by the Swing Line Bank on its books, provided that the failure of the Swing Line Bank to make any such
recordation shall not affect the obligations of the Company to make a payment when due of any amount owing under the Credit Agreement
or hereunder in respect of the Swing Line Loans made by the Swing Line Bank.

 

This Swing Line Note
(i) is one of the Notes referred to in the Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated,
supplemented or otherwise modified and in effect from time to time, the “Credit Agreement”) among the Company,
the banks from time to time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”,
New York Branch, as Agent, (ii) is entitled to the benefits of the Credit Agreement and (iii) evidences Swing Line Loans made by
the Swing Line Bank under the Credit Agreement. Terms used but not defined in this Swing Line Note have the respective meanings
assigned to them in the Credit Agreement.

 

The Credit Agreement
provides for the acceleration of the maturity of this Swing Line Note upon the occurrence of certain events and for prepayments
of Swing Line Loans upon the terms and conditions specified therein.

 

Except as permitted
by Section 11.06 of the Credit Agreement, this Swing Line Note may not be assigned by the Swing Line Bank to any other Person.

 

    	 

    	 

    

  

This Swing Line Note
shall be governed by, and construed in accordance with, the law of the State of New York.

 

	 	EMPIRE RESOURCES, INC.
	 	 	 
	 	By	 
	 	 	Name:  Sandra R. Kahn
	 	 	Title:  Vice President

 

    	 

    	 

    

 

EXHIBIT
B

 Form
of Borrowing Base Certificate

 

Coöperatieve
Centrale

Raiffeisen-Boerenleenbank
B.A.,

“Rabobank
Nederland”,

New
York Branch, as agent

 

c/o
Rabobank International

245
Park Avenue

New
York, NY 10167

	Phone No.	212-808-6815
	Fax No.	212-916-3731
	Attention:	Frank Imperato / Naoko Kojima / Xander Willemsen

 

And
each Bank

 

Ladies
and Gentlemen:

 

This
Borrowing Base Certificate as of _____________, 20__ (the “Computation Date”) is executed and delivered by
Empire Resources, Inc. (the “Company”) to Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A.,
“Rabobank Nederland”, New York Branch, as agent (in such capacity, together with its successors in such capacity,
the “Agent”), pursuant to that certain Amended and Restated Credit Agreement dated as of June 19, 2014
(as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”) among
the Company, the banks from time to time party thereto and the Agent. All terms used herein shall have the meanings assigned to
them in the Credit Agreement.

 

The
Company represents and warrants to the Agent and the Banks that all information contained herein is true, correct, and complete,
and that the property included in the calculations below represents the property that qualifies for purposes of determining the
Borrowing Base under the Credit Agreement. The Company also represents and warrants that all figures listed below or attached
hereto have been calculated based on the provisions of the Credit Agreement.

 

The
Company represents and warrants to the Agent and the Banks that the representations and warranties of the Obligors contained in
the Basic Documents are true and correct in all material respects on and as of the date of this Borrowing Base Certificate as
if made on and as of the date hereof except to the extent that such representations and warranties relate specifically to another
date, and that no Default exists.

 

	BORROWING BASE SUMMARY:	 	 	 
	A.	Borrowing Base (as detailed from schedule 1)	 	 	$__________
	B.	Revolving Loan Commitments	 	 	$__________
	C.	Lesser of Line A or Line B	 	 	$__________
	D.	Credit Exposure:	 	 	 
	 	(i)	Loans	$__________	 	 
	 	(ii)	Letters of Credit	$__________	 	 
	 	(iii)	Total	 	 	$__________
	E.	Availability

        (Line
        C, minus Line D(iii))
	 	 	$__________

 

 

    	Borrowing Base Certificate, Page 1

    	 

    

 

In
the event of any conflict between this Borrowing Base Certificate and the Credit Agreement, the Credit Agreement shall control.

 

	Date:  __________, 20__.	 
	 	 
	 	Borrower:
	 	 
	 	EMPIRE RESOURCES, INC.
	 	 	 
	 	By:	 
	 	 	Sandra Kahn, Vice President and Chief Financial Officer

 

    	Borrowing Base Certificate, Page 2

    	 

    

  

SCHEDULE
1

TO

BORROWING
BASE CERTIFICATE

 

EMPIRE
RESOURCES, INC.

 

	 	 	Amount	 	Advance

    Rate	 	Amount
    Times

    Advance Rate	 
	1.	Assets	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 	(a)	Eligible
    Net Liquidating Value of Brokerage Accounts1	$__________	 	85%	 	$__________	 
	 	 	 	 	 	 	 	 	 
	 	(b)	Tier I Eligible
    Receivables	$__________	 	90%	 	$__________	 
	 	 	 	 	 	 	 	 	 
	 	(c)	Tier II Eligible
    Receivables2	$__________	 	80%	 	$__________	 
	 	 	 	 	 	 	 	 	 
	 	(d)	Australian Receivables3	$__________	 	70%	 	$__________	 
	 	 	 	 	 	 	 	 	 
	 	(e)	Eligible Inventory
    Ordered Under L/C	$__________	 	80%	 	$__________	 
	 	 	 	 	 	 	 	 	 
	 	(f)	Eligible Inventory4	$__________	 	80%	 	$__________	 
	 	 	 	 	 	 	 	 	 
	 	(g)	Eligible Unsold
    Inventory5 	$__________	 	65%	 	$__________	 
	 	 	 	 	 	 	 	 	 
	 	(h)	Pledged Cash	$__________	 	100%	 	$__________	 
	 	 	 	 	 	 	 	 
	2.	Total
    Assets (sum of lines (a), (b), (c), (d), (e), (f), (g) and (h))	 	 	 	 	$__________	 
	 	 	 	 	 	 	 	 
	3.	Deductions
    for Reserves	$__________	 	100%	 	($__________)	 
	 	 	 	 	 	 	 	 
	4.	Deductions
    for Indebtedness secured by Permitted Borrowing Base Liens	$__________	 	100%	 	($__________)	 
	 	 	 	 	 	 	 	 
	5.	Borrowing
    Base  (line 2 minus line 3 minus line 4)	 	 	 	 	$	 

 

 

1
To be included in Borrowing Base calculation only if and to the extent requested by the Company.

 

2
The aggregate amount of Tier II Eligible Receivables (a) that are not Credit Insured Receivables, owing from any one account
debtor (and its Affiliates) at any time shall not exceed $1,500,000 (per account debtor (and its Affiliates)), and (b) included
in the Borrowing Base at any time shall not exceed $6,500,000 (after giving effect to the applicable advance rate), in each case
(under clauses (a) and (b)), unless otherwise approved in writing by the Required Banks.

 

3
In no event shall the aggregate amount of the Australian Receivables included in the Borrowing Base at any time exceed an
amount equal to 10% of the Borrowing Base (after giving effect to the applicable advance rate).

 

4
In no event shall the aggregate amount of the Eligible Inventory included in the Borrowing Base at any time exceed an amount
equal to 65% of the Borrowing Base (after giving effect to the applicable advance rate).

 

5
In no event shall the aggregate amount of Eligible Unsold Inventory included in the Borrowing Base at any time exceed $6,500,000
(after giving effect to the applicable advance rate) and in no event shall the aggregate amount of Eligible Unsold Inventory included
in the Borrowing Base at any time which is stainless steel exceed $5,000,000 (after giving effect to the applicable advance rate).

 

    	Borrowing Base Certificate, Page 3

    	 

    

 

EXHIBIT
E

 

 

ASSIGNMENT AND ASSUMPTION

 

This Assignment and
Assumption (the “Assignment and Assumption”) is dated as of the Effective Date set forth below and is entered
into by and between [Insert name of Assignor] (the “Assignor”) and [Insert name of Assignee] (the
“Assignee”). Capitalized terms used but not defined herein shall have the meanings given to them in the Credit
Agreement identified below (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by the Assignee. The Standard Terms and Conditions set forth in Annex 1 attached
hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and Assumption as if set forth
herein in full.

 

For an agreed consideration,
the Assignor hereby irrevocably sells and assigns to the Assignee, and the Assignee hereby irrevocably purchases and assumes from
the Assignor, subject to and in accordance with Standard Terms and Conditions and the Credit Agreement, as of the Effective Date
inserted by the Agent as contemplated below (i) all of the Assignor's rights and obligations in its capacity as a Bank under the
Credit Agreement and any other documents or instruments delivered pursuant thereto to the extent related to the amount and percentage
interest identified below of all of such outstanding rights and obligations of the Assignor under the respective facilities identified
below (including any letters of credit, guarantees, acceptances and swingline loans included in such facilities) and (ii) to the
extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of the Assignor (in
its capacity as a Bank) against any Person, whether known or unknown, arising under or in connection with the Credit Agreement,
any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on
or related to any of the foregoing, including, but not limited to, contract claims, tort claims, malpractice claims, statutory
claims and all other claims at law or in equity related to the right and obligations sold and assigned pursuant to clause (i) above
(the rights and obligations sold and assigned pursuant to clauses (i) and (ii) above being referred to herein collectively as,
the “Assigned Interest”). Such sale and assignment is without recourse to the Assignor and, except as expressly
provided in this Assignment and Assumption, without representation or warranty by the Assignor.

 

	1.	Assignor:	 	 
	 	 	 	 
	2.	Assignee:	 	 
	 	 	 	[and is an Affiliate/Approved Fund of [identify Bank]1]
	 	 	 	 
	3.	Borrower:	 	Empire Resources, Inc.
	 	 	 	 
	 	 	 	 
	4.	Agent:	 	Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as the agent under the Credit Agreement
	 	 	 	 
	5.	Credit Agreement:	 	Amended and Restated Credit Agreement dated as of June __, 2014 among Empire Resources, Inc., the banks from time to time party thereto and Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as Agent.

 

 

1 Select as applicable.

 

    	ASSIGNMENT AND ASSUMPTION, Page 1

    	 

    

  

	6.	Assigned Interest:	 	 

 

	Aggregate Amount of

Commitment/Loans for all

Banks	 	 	Amount of Commitment/Loans Assigned	 	 	Percentage Assigned of

Commitment/Loans	 
	$		 	 	$		 	 	 		%

 

	[7.	Trade Date:	 	______________]4

 

Effective Date:
                 ,
20     [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE EFFECTIVE DATE OF RECORDATION OF TRANSFER
IN THE REGISTER THEREFOR.]

 

The terms set forth
in this Assignment and Assumption are hereby agreed to:

 

	 	ASSIGNOR
	 	 
	 	[NAME OF ASSIGNOR]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	ASSIGNEE
	 	 
	 	[NAME OF ASSIGNEE]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

 

4 To be completed if the Assignor and the Assignee
intend that the minimum assignment amount is to be determined as of the Trade Date.

 

    	ASSIGNMENT AND ASSUMPTION, Page 2

    	 

    

 

	[Consented to and]5  Accepted:	 
	 	 
	Coöperatieve Centrale	 
	Raiffeisen-Boerenleenbank B.A.,	 
	“Rabobank Nederland”, New	 
	York Branch, as Agent	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 
	 	 
	[Consented to:]6	 
	 	 
	EMPIRE RESOURCES, INC.	 
	 	 	 
	By:	 	 
	 	Name:	 
	 	Title:	 

 

 

5 To be added only if the consent of the Agent is
required by the terms of the Credit Agreement.

6 To be added only if the consent of the Company
and/or other parties (e.g. Swing Line Bank, Issuing Bank) is required by the terms of the Credit Agreement.

 

 

    	ASSIGNMENT AND ASSUMPTION, Page 3

    	 

    

 

ANNEX I

Empire
Resources, Inc.

credit
agreement

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.Representations
and Warranties

 

1.1Assignor.
The Assignor (a) represents and warrants that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the Assigned
Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken
all action necessary, to execute and deliver the Assignment and Assumption and to consummate the transactions contemplated hereby;
and (b) assumes responsibility with respect to (i) any statements, warranties or representations made in or in connection
with the Credit Agreement or any other Basic Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency
or value of any Basic Documents or any collateral thereunder, (iii) the financial condition of the Company, any of the Subsidiaries
or Affiliates or any other Person obligated in respect of any Basic Document or (iv) the performance or observance by the Company,
any of the Subsidiaries or Affiliates or any other Person of any of their respective obligations under any Basic Document.

 

1.2Assignee.
The Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all action necessary,
to execute and deliver this Assignment and Assumption and to consummate the transactions contemplated hereby and to become a Bank
under the Credit Agreement, (ii) from and after the Effective Date, it shall be bound by the provisions of the Credit Agreement
as a Bank thereunder and, to the extent of the Assigned Interest, shall have the obligations of a Bank thereunder, (iii) it has
received a copy of the Credit Agreement, together with copies of the most recent financial statements delivered pursuant to the
Credit Agreement and such other documents and information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Assumption and to purchase the Assigned Interest on the basis of which it has made such analysis
and decision independently and without reliance on the Agent or any other Bank, and (iv) if it is a Foreign Bank, attached
to the Assignment and Assumption is any documentation required to be delivered by it pursuant to the terms of the Credit Agreement,
duly completed and executed by the Assignee; (b) agrees that (i) it will, independently and without reliance on the Agent, the
Assignor or any other Bank, and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit decisions in taking or not taking action under Basic Documents, and (ii) it will perform in accordance with their
terms all of the obligations which by the terms of the Basic Documents are required to be performed by it as a Bank; and (c) agrees
that it will be bound by the terms and provisions of the Intercreditor Agreement.

 

2.Payments.
From and after the Effective Date, the Agent shall make all payments in respect of the Assigned Interest (including payments of
principal, interest, fees and other amounts) to the Assignee whether such amounts which have accrued prior to or after the Effective
Date. The Assignor and the Assignee shall make all appropriate adjustments
in payments by the Agent for periods prior to the Effective Date or with respect to the making of this assignment directly between
themselves.

 

3.General Provisions.
This Assignment and Assumption shall be binding upon, and inure to the benefit of the parties hereto and their respective successors
and assigns. This Assignment and Assumption may be executed in any number of counterparts, which together shall constitute one
instrument. Delivery of an executed counterpart of a signature page of this Assignment and Assumption by telecopy shall be effective
as delivery of a manually executed counterpart of a signature page of this Assignment and Assumption. This Assignment and Assumption
shall be governed by and construed in accordance with, the law of the State of New York, other than those conflict of law provisions
that would defer to the substantive laws of another jurisdiction. This governing law election has been made by the parties in reliance
(at least in part) on Section 5-1401 of the General Obligations Law of the State of New York, as amended (as and to the extent
applicable), and other applicable law.

 

    	ASSIGNMENT AND ASSUMPTION, Page 4

    	 

    

 

EXHIBIT F

 

FORM OF

INCREASE AND NEW BANK AGREEMENT

 

INCREASE AND NEW
BANK AGREEMENT, dated as of _____ ___, 20__ (this “Agreement”), prepared pursuant to Section 2.05(d) of
the Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or otherwise modified through
the date hereof, the “Existing Credit Agreement”; as modified hereby and as further amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among EMPIRE RESOURCES, INC. (the “Company”),
EMPIRE RESOURCES PACIFIC, LTD. and certain other Subsidiaries of the Borrower from time to time party to the Subsidiary Guarantee
(each a “Guarantor”; and collectively, the “Guarantors”), the several Banks from time to
time party thereto, and COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH,
as agent (in such capacity, together with its successors in such capacity, the “Agent”) and as a Fronting Bank.

 

RECITALS

 

Pursuant to Section
2.05(d) of the Existing Credit Agreement, the undersigned Banks party to the Existing Credit Agreement (the “Increasing
Banks”) and the undersigned Persons not party to the Existing Credit Agreement (the “New Banks”),
have agreed to increase their (or make their) Commitments (as applicable) as governed by the Credit Agreement on the terms and
subject to the conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises contained herein and for other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Company, the Agent, the Issuing Banks, the Increasing Banks and the New Banks hereby agree as follows:

 

1.           Defined
Terms. Unless otherwise defined herein, terms defined in the Existing Credit Agreement are used herein as therein defined.

 

2.           Increase
Agreement and New Bank Agreement.

 

(a)   Each
Increasing Bank party to this Agreement hereby agrees to increase its respective Commitment (as modified pursuant to Section 3
of this Agreement), in the amount set forth in Schedule 1.0,1
such increase to be effective as of __________ ___, 20__ (the “Increase Effective Date”).

 

(b)   Each
New Bank party to this Agreement hereby agrees to make Revolving Loans to the Company and participate in Letters of Credit and
Swing Line Loans for the account of, the Company, from time to time until the Revolving Credit Commitment Termination Date in an
aggregate principal amount at any one time outstanding not to exceed its respective Commitment (as set forth on Schedule 1.0),
such agreement to be effective as of the Increase Effective Date. From and after the Increase Effective Date, each New Bank shall
be a party to the Credit Agreement and, to the extent provided in this Agreement, have the rights and obligations of a Bank under
the Credit Agreement and under the other Basic Documents and shall be bound by the provisions thereof.

 

 

1
The aggregate amount of all increases shall not exceed $75,000,000.

 

    	 

    	 

    

 

(c)   With
respect to (i) any increase in the Commitment of any Increasing Bank and (ii) any New
Bank, such Increasing Bank and such New Bank shall hold an undivided interest in and to (A) all the rights and obligations of a
Bank under the Credit Agreement in connection with its increased or new Commitment, as the case may be, in the principal amount
set forth on Schedule 1.0 hereto and (B) all rights and obligations of a Bank in connection therewith under the other Basic Documents.

 

3.           Commitments;
Increasing Banks; New Banks.

 

(a)   Effective
upon the Increase Effective Date, the Commitments for each Increasing Bank, each Non Increasing Bank (as defined below) and each
New Bank shall be as set forth in Schedule 1.0.

 

(b)   Any
Increasing Bank shall pay to the Agent on the Increase Effective Date, in immediately available funds, an amount equal to the amount,
if any, by which such Increasing Bank’s Revolving Loan Commitment Percentage (determined after giving effect to the adjustment
of the Commitments pursuant to Section 3(a) of this Agreement, including the increase of such Increasing Bank’s Commitment)
of the aggregate principal amount of the Revolving Loans and funded participation interests in Reimbursement Obligations and Swing
Line Loans to be outstanding immediately upon the Increase Effective Date exceeds the aggregate principal amount of Revolving Loans
and funded participation interests in Reimbursement Obligations and Swing Line Loans owing to such Increasing Bank immediately
prior to the Increase Effective Date. Such amount paid by any such Increasing Bank shall be deemed the purchase price for the acquisition
by such Increasing Bank of such additional amount of Revolving Loans and funded participation interests in Reimbursement Obligations
and Swing Line Loans from Banks whose Commitments are not increased under this Agreement (“Non Increasing Banks”)
and, if applicable, other Banks. The Agent shall distribute such amounts as received from the Increasing Banks as may be necessary
so that the Revolving Loans and funded participation interests in Reimbursement Obligations and Swing Line Loans are held by the
Increasing Banks, New Banks and Non Increasing Banks in accordance with their respective Revolving Loan Commitment Percentages
(determined after giving effect to the adjustment of Revolving Loan Commitment Percentages pursuant to Section 3(a) of this Agreement).

 

(c)   Any
New Bank shall pay to the Agent on the Increase Effective Date, in immediately available funds, an amount equal to the amount of
such New Bank’s Revolving Loan Commitment Percentage (determined after giving effect to the adjustment of the Commitments
pursuant to Section 3(a) of this Agreement) of the aggregate principal amount of the Revolving Loans and funded participation interests
in Reimbursement Obligations and Swing Line Loans to be outstanding immediately upon the Increase Effective Date. Such amount paid
by any such New Bank shall be deemed the purchase price for the acquisition by such New Bank of such amount of Revolving Loans
and funded participation interests in Reimbursement Obligations and Swing Line Loans from Non Increasing Banks and, if applicable,
other Banks upon the effectiveness of this Agreement. The Agent shall distribute such amounts as received from the New Banks as
may be necessary so that the Revolving Loans and funded participation interests in Reimbursement Obligations and Swing Line Loans
are held by the Increasing Banks, New Banks and Non Increasing Banks in accordance with their respective Revolving Loan Commitment
Percentages (determined after giving effect to the adjustment of Revolving Loan Commitment Percentages pursuant to Section 3(a)
of this Agreement).

 

(d)   Each
Increasing Bank and Non Increasing Bank (each, a “Selling Bank”) which receives a payment in connection with
clause (b) or (c) above shall be deemed to have sold and assigned, without recourse to such Selling Bank, to the applicable Increasing
Banks and/or New Banks (each, a “Purchasing Bank”), and such Purchasing Banks shall be deemed to have purchased
and assumed without recourse to the Selling Banks, Revolving Loans and funded participation interests in Reimbursement Obligations
and Swing Line Loans in amounts such that after giving effect thereto each Bank shall hold Revolving Loans and funded participation
interests in Reimbursement Obligations and Swing Line Loans in accordance with its Revolving Loan Commitment Percentage (determined
after giving effect to the adjustment of Commitments pursuant to Section 3(a) of this Agreement).

 

    	 

    	 

    

  

4.           Conditions
Precedent. This Agreement shall become effective upon the satisfaction of the following conditions precedent:

 

(a)   Increase
Documents. The Agent shall have received (each of the following documents being referred to herein as an “Increase
Document”):

 

(i)          this
Agreement, executed and delivered by a duly authorized officer of the Company, the Agent, the Issuing Banks, the Swing Line Bank,
each Increasing Bank and each New Bank, with a counterpart for each Bank, and

 

(ii)         for
the account of each Bank requesting the same, a Note of the Company conforming to the requirements of the Credit Agreement, and
reflecting the Commitment of such Bank after giving effect to this Agreement, executed by a duly authorized officer of such Company.

 

(b)   Increasing
Banks; New Banks. The Agent shall have received from each Increasing Bank and each New Bank the amounts required to be paid
by such Increasing Banks and New Banks pursuant to Section 3 of this Agreement.

 

(c)   Governing
Documents. The Agent shall have received, with a counterpart for each Bank, certified copies of the charter and by laws (or
equivalent documents) of the Company, and of all corporate authority for the Company (including board of director resolutions,
evidence of the incumbency of officers and signature specimens of officers) with respect to the execution, delivery and performance
of this Agreement and each other document to be delivered by the Company from time to time in connection herewith, each dated as
of the Increase Effective Date with appropriate insertions and attachments, reasonably satisfactory in form and substance to the
Agent.

 

(d)   Good
Standing Certificates. The Agent shall have received, with a copy for each Bank, evidence of the existence, good standing and
authority to transact business for the Company (i) from the Secretary of State of New Jersey and (ii) from the Secretary of State
of each other jurisdiction in which the failure of the Company to be in good standing or to have the authority to transact business
would result in a Material Adverse Effect.         

 

(e)   Legal
Opinions. The Agent shall have received, with a counterpart for each Bank, an executed opinion addressed to the Agent and each
of the Banks and dated the Increase Effective Date and covering such matters incident to the transactions contemplated by this
Agreement as the Agent, the Increasing Banks and the New Banks may reasonably require.

 

(f)   Compliance
Certificate. The Agent shall have received a Compliance Certificate dated as of the Increase Effective Date, in form and substance
satisfactory to the Agent.

 

(g)   Fees.
The Company shall have paid, in immediately available funds, any fees and other amounts (including, without limitation, pursuant
to Section 11.03 of the Credit Agreement) payable by the Company in connection with the increase of the Commitments.

 

    	 

    	 

    

  

(h)   Other
Conditions. Each of the other conditions to the Increase Effective Date provided in Section 2.05(d) of the Existing Credit
Agreement, including, without limitation, the delivery of the certificate of an authorized officer required pursuant to Section
2.05(d)(iii)(D) of the Existing Credit Agreement, shall have been satisfied.

 

5.           Reaffirmations.

 

(a)   The
Company hereby acknowledges, confirms and agrees that all of the terms, provisions, obligations, guarantees and agreements of the
Company under the Security Agreement and the other Security Documents to which it is a party remain in full force and effect in
all respects and the Company hereby reaffirms its obligations and liabilities under the Security Agreement and the other Security
Documents to which it is a party and that the Collateral continues to secure the Obligations, which include the Obligations both
before and after giving effect to this Agreement, all without offset, defense or counterclaim.

 

(b)   Each
Guarantor hereby acknowledges, confirms and agrees that all of the terms, provisions, obligations, guarantees and agreements of
such Guarantor under the Subsidiary Guarantee, the Security Agreement and the other Security Documents to which it is a party remain
in full force and effect in all respects and each Guarantor hereby reaffirms its obligations and liabilities under the Subsidiary
Guarantee and that the Collateral continues to secure its Obligations, which include such Obligations both before and after giving
effect to this Agreement, all without offset, defense or counterclaim.

 

6.          Representations
and Warranties. To induce the undersigned Banks to enter into
this Agreement, the Company hereby represents and warrants to the undersigned Banks that, after giving effect to the increase of
the Commitments and the other modifications to the Existing Credit Agreement provided for herein, the representations and warranties
contained in the Credit Agreement and the other Basic Documents will be true and correct in all material respects as if made on
such date, except for those representations and warranties that by their terms were made as of a specified date which shall be
true and correct in all material respects on and as of such date, and that no Default or Event of Default shall have occurred and
be continuing.

 

7.          Disclaimer.
Each New Bank and each Increasing Bank acknowledges and agrees that no Bank party to the Existing Credit Agreement (i) has made
any representation or warranty and shall have no responsibility with respect to any statements, warranties or representations made
in or in connection with the Credit Agreement or the execution, legality, validity, enforceability, genuineness, sufficiency or
value of the Credit Agreement, any other Basic Documents or any other instrument or document furnished pursuant thereto or in connection
therewith; (ii) has made any representation or warranty and has any responsibility with respect to the financial condition of the
Company or any other obligor or the performance or observance by the Company or any obligor of any of their respective obligations
under the Credit Agreement or any other Basic Documents or any other instrument or document furnished pursuant hereto or thereto.
Each Increasing Bank and each New Bank represents and warrants that it is legally authorized to enter into this Agreement, and
each New Bank (i) confirms that it has received a copy of the Existing Credit Agreement, together with copies of the financial
statements delivered pursuant to Section 8.01 thereof and such other documents and information as it has deemed appropriate to
make its own credit analysis and decision to enter into this Agreement; (ii) agrees that it will, independently and without reliance
upon the Increasing Banks or the Agent and based on such documents and information as it shall deem appropriate at the time, continue
to make its own credit decisions in taking or not taking action under the Credit Agreement, the other Basic Documents or any other
instrument or document furnished pursuant hereto or thereto or in connection herewith or therewith; (iii) appoints and authorizes
the Agent to take such action as agent on its behalf and to exercise such powers and discretion under the Credit Agreement, the
other Basic Documents or any other instrument or document furnished pursuant hereto or thereto as are delegated to the Agent by
the terms thereof, together with such powers as are incidental thereto; and (iv) agrees that it will be bound by the provisions
of the Credit Agreement and will perform in accordance with its terms all the obligations which by the terms of the Credit Agreement
are required to be performed by it as a Bank including, if it is organized under the laws of a jurisdiction outside the United
States, its obligation pursuant to subsection 5.06(f) of the Credit Agreement.

 

    	 

    	 

    

  

8.           No
Other Amendments or Waivers. Except as expressly amended or waived hereby, the Credit Agreement and the other Basic Documents
shall remain in full force and effect in accordance with their respective terms, without any waiver, amendment or modification
of any provision thereof.

 

9.           Effect
on Credit Agreement. From and after the Increase Effective
Date, each Increasing Bank and each New Bank party hereto shall be a party to the Credit Agreement and, to the extent provided
in this Agreement, have the rights and obligations of a Bank thereunder and under the other Basic Documents and shall be bound
by the provisions thereof.

 

10.          Counterparts.
This Agreement may be executed by one or more of the parties hereto on any number of separate counterparts (including by facsimile
transmission of signature pages hereto) and all of said counterparts taken together shall be deemed to constitute one and the same
instrument.

 

11.          Applicable
Law. This Agreement and the rights and obligations of the parties hereunder shall be governed by, and construed and interpreted
in accordance with, the law of the state of New York (without regard to the conflicts of laws principles thereof).

 

[SIGNATURE PAGES FOLLOW]

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

 

	 	EMPIRE RESOURCES, INC.,
	 	as the Company
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	EMPIRE RESOURCES PACIFIC, LTD.,
	 	as a Guarantor
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	[Additional Guarantors],
	 	as a Guarantor
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	COÖPERATIEVE CENTRALE RAIFFEISEN-BOERENLEENBANK B.A., “RABOBANK NEDERLAND”, NEW YORK BRANCH, as Agent and a Fronting Bank 
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:
	 	 
	 	BANKS
	 	 
	 	[NAME OF BANK]
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    	 

    	 

    

 

Schedule 1.0 to

Increase and New Bank Agreement

 

BANKS AND COMMITMENTS

 

	Bank	 	 	Lending Office	 	 	Amount of Increase	 	 	Commitment Amount

(after giving effect to

increase, if any)	 
	 		 	 	 		 	 	 		 	 	 		 

 

    	 

    	 

    

 

EXHIBIT G

 

FORM OF

COMPLIANCE CERTIFICATE

for the

quarter/fiscal year ending __________ __,
_____

 

Coöperatieve Centrale

Raiffeisen-Boerenleenbank B.A.,

“Rabobank Nederland”,

New York Branch, as agent

 

c/o Rabobank International

245 Park Avenue

New York, NY 10167

	Phone No.	212-808-6815
	Fax No.	212-916-3731
	Attention:	Frank Imperato / Naoko Kojima / Xander Willemsen

 

and each Bank

 

Ladies and Gentlemen:

 

This Compliance Certificate
(the “Certificate”) is being delivered pursuant to Section 8.01 of that certain Amended and Restated Credit
Agreement dated as of June 19, 2014 (as amended, restated, supplemented or otherwise modified from time to time, the “Agreement”)
among Empire Resources, Inc. (the “Company”), the banks from time to time party thereto and Coöperatieve
Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch, as agent (in such capacity, together
with its successors in such capacity, the “Agent”). All terms used herein shall have the meanings assigned to
them in the Agreement. All the calculations set forth below shall be made pursuant to the terms of the Agreement.

 

The undersigned, an
authorized financial officer of the Company in his or her capacity as such financial officer and not in his or her individual capacity,
does hereby certify to the Agent and the Banks that:

 

	1.        DEFAULT
	No Event of Default exists or has occurred or, if an Event of Default exists, I have described on the attached Exhibit “A” the nature thereof and the steps taken or proposed to remedy such Event of Default.
	 	 	 	Compliance
	2.        SECTION 8.01 - Financial Statements and Records	 	 	 
	 	 	 	 
	(a)       Annual audited financial statements of the Company on a consolidated basis within 90 days after the end of each fiscal year end (together with Compliance Certificate).	 	 	Yes	No	N/A
	 	 	 	 	 	 
	(b)       quarterly unaudited financial statements of the Company on a consolidated basis within 45 days after each of the first three fiscal quarter ends (together with Compliance Certificate).	 	 	Yes	No	N/A
	 	 	 	 	 	 
	(c)       Bi-Monthly Borrowing Base Certificate 	 	 	Yes	No	N/A

 

    	 

    	 

    

 

	4.        SECTION 8.04 - Insurance	 	 	 
	 	 	 	 	 	 
	Annual Evidence of Insurance on anniversary of the Closing Date.	 	 	Yes	No	N/A
	 	 	 	 	 	 
	5.        SECTION 8.07 - Indebtedness	 	 	 	 	 
	 	 	 	 	 	 
	No additional Indebtedness except: 	 	 	 	 	 
	 	 	 	 	 	 
	(a)       Indebtedness of 6900 Quad Avenue, LLC not to exceed:	 	$1,300,000	 	 	 
	Actual outstanding:	 	$_______	Yes	No	 
	 	 	 	 	 	 
	(b)       Other unsecured Indebtedness of the Company	 	$250,000 	 	 	 
	Actual outstanding:	 	$_______	Yes	No	 
	 	 	 	 	 	 
	(c)       Imbali Facility not to exceed: 	 	€10,000,000	 	 	 
	Actual € amount outstanding:	 	€_______	Yes	No	 
	Actual $ equivalent amount outstanding:	 	$_______	 	 	 
	 	 	 	 	 	 
	(d)       Non-recourse Inventory financing amount outstanding	 	$_______	 	 	 
	 	 	 	 	 	 
	(e)       Reimbursement obligations in respect of letters of credit issued outside of the Agreement	 	$_______	 	 	 
	 	 	 	 	 	 
	(f)       Subordinated Debt	 	$_______	 	 	 
	 	 	 	 	 	 
	(g)       Pre-export financing Guarantees not to exceed:	 	$3,000,000	 	 	 
	Actual outstanding:	 	$_______	Yes	No	 
	 	 	 	 	 	 
	(h)       Aggregate $ equivalent amount of actual outstanding under the Indebtedness under lines (d), (e), (f) and (g) not to exceed: 	 	
         

         

        $25,000,000
	 	 	 
	Actual aggregate $ equivalent amount of actual outstanding under the Indebtedness under lines (d), (e), (f) and (g):	 	$_______	Yes	No	 
	 	 	 	 	 	 
	(i)        Capital Expenditures not to exceed:	 	$10,000,000	 	 	 
	Actual outstanding:	 	$_______	Yes	No	 
	 	 	 	 	 	 
	(j)       Indebtedness under the Uncommitted Credit Agreement not to exceed at any time an amount equal to 50% of the aggregate Revolving Loan Commitments	 	
         

         

        $_______
	 	 	 
	Actual outstanding:	 	$_______	Yes	No	 
	 	 	 	 	 	 
	(c)       Australian Subsidiary Indebtedness not to exceed: 	 	AUS$20,000,000	 	 	 
	Actual AUS$ amount outstanding:	 	AUS$_______	Yes	No	 
	 	 	 	 	 	 
	6.   SECTION 8.08 - Investments	 	 	 	 	 
	 	 	 	 	 	 
	(a)    Investments in Imbali Metals BVBA not to exceed: 	 	€4,000,000	 	 	 
	Actual Imbali Investments	 	€_______	Yes	No	 
	 	 	 	 	 	 
	(b)    Investments with Sub Debt proceeds not to exceed: 	 	$12,000,000	 	 	 
	Actual Investments with Sub Debt proceeds:	 	$_______	Yes	No	 

 

    	 

    	 

    

 

	(c)     Additional Investments not to exceed: 	 	$500,000	 	 	 
	Actual additional Investments 	 	$_______	Yes	No	 
	 	 	 	 	 	 
	(d)     Permitted Investments not to exceed1: 	 	$_______	Yes	No	 
	 	 	 	 	 	 
	7.   SECTION 8.09 – Leverage Ratio	 	 	 	 	 
	 	 	 	 	 	 
	(a)     Total Liabilities (including letters of credit)	 	$_________	 	 	 
	(b)     Subordinated Debt	 	$_________	 	 	 
	(c)     Tangible Net Worth	 	 	 	 	 
	(i)         amount of common stock;	 	$_________	 	 	 
	(ii)        amount of surplus and retained earnings (minus any deficit);	 	$_________	 	 	 
	(iii)       accumulated other comprehensive income;	 	$_________	 	 	 
	(iv)       Subordinated Debt	 	$_________	 	 	 
	(v)        Investments (other than Permitted Investments), the cost of treasury shares and all assets classified as intangibles (without duplication of deductions in respect of items already deducted in arriving at surplus and retained earnings)	 	
         

        ($_________)
	 	 	 
	(vi)        Sum of (i) through (iv) minus (v) 	 	$_________	 	 	 
	(d)     7(a) minus 7(b)   ̧ 7(c)(vi) 	 	___ to 1.00	 	 	 
	(e)     Maximum Leverage Ratio	 	6.00 to 1.00	Yes	No	 
	 	 	 	 	 	 
	8.   SECTION 8.10 – Net Working Capital	 	 	 	 	 
	 	 	 	 	 	 
	(a)     Base Amount	 	$35,000,000	 	 	 
	(b)     25% of Company's Consolidated Net Income (only if a positive number) for the fiscal year most recently ended	 	
         

        $_________
	 	 	 
	(c)     Total minimum required Net Working Capital (8(a) plus 8(b))	 	
         

        $_________
	 	 	 
	(d)     Actual Net Working Capital 	 	$_________	Yes	No	 
	 	 	 	 	 	 
	9.   SECTION 8.11 – No Net Loss	 	 	 	 	 
	 	 	 	 	 	 
	Consolidated Net Income (but calculated before taxes and extraordinary items in accordance with GAAP) not to be less than negative $4,000,000 in the aggregate over two or more consecutive quarters	 	 	Yes	No	 
	 	 	 	 	 	 
	10.  SECTION
8.17 - Additional Domestic Subsidiaries	 	 	 
	 	 	 	 
	Joinder of new Domestic Subsidiaries promptly after the Domestic Subsidiary is formed or acquired.	 	 	Yes	No	N/A
	 	 	 	 	 	 
	Pledge of new Capital Securities in Domestic Subsidiaries and 65% of foreign Subsidiaries	 	 	Yes	No	N/A
	 	 	 	 	 	 
	11.  SECTION 8.20 – Capital Expenditure Limit	 	 	 	 	 
	 	 	 	 	 	 
	(a)     Capital Expenditures for logistical assets not to exceed:	 	$10,000,000	 	 	 
	(b)     Actual Capital Expenditures for logistical assets	 	$_________	 	 	 
	(c)     Compliance: (line 11(b) must be less than Line 11(a))	 	 	Yes	No	 
	 	 	 	 	 	 	 

 

1 To be completed with respect to each category of
Permitted Investments.

 

    	 

    	 

    

 

IN WITNESS WHEREOF,
the undersigned has executed this Certificate effective as of the date first written above.

 

	 	EMPIRE RESOURCES, INC.
	 	 	 
	 	By:	 
	 	 	Name:	 
	 	 	Title:	 

 

    	 

    	 

    

 

EXHIBIT I

FORM OF

BORROWING REQUEST

 

Coöperatieve Centrale

Raiffeisen-Boerenleenbank B.A.,

“Rabobank Nederland”,

New York Branch, as agent

 

c/o Rabobank International

245 Park Avenue

New York, NY 10167

	Phone No.	212-808-6815
	Fax No.	212-916-3731
	Attention:	Frank Imperato / Naoko Kojima / Xander Willemsen 

 

and each Bank

 

Ladies and Gentlemen:

 

The undersigned is
an authorized officer of Empire Resources, Inc. (the “Company”) and is authorized to make and deliver this Borrowing
Request pursuant to that certain Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented
or otherwise modified from time to time, the “Credit Agreement”) among the Company, the banks from time to time
party thereto and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch,
as agent (in such capacity, together with its successors in such capacity, the “Agent”). All terms defined in
the Credit Agreement shall have the same meaning herein. In accordance with the Credit Agreement, the Company hereby (check whichever
is applicable):

 

___       1.          Requests
that the Banks make an advance under the Revolving Loan Commitments which shall be a Base Rate Loans in the amount of $ _________
on __________.

 

___       2.          Requests
that the Banks make an advance on __________under the Revolving Loan Commitments as Eurodollar Loans with the amount of each Eurodollar
Loan and duration of the Interest Periods with respect thereto to be as follows:

 

	Amount	 	 	Interest Period	 	 	 	Maturity Date	 
	1.	 	 	_____ Month(s)	 	 	 	 	 
	2.	 	 	_____ Month(s)	 	 	 	 	 
	3.	 	 	_____ Month(s)	 	 	 	 	 
	4.	 	 	_____ Month(s)	 	 	 	 	 

 

___       3.          Requests
that the Swing Line Bank make an advance under the Swing Line Commitment in the amount of $__________ on __________.

 

___       4.          Requests
that _________ issue a Letter of Credit in the form attached hereto as Exhibit A with an original face amount of $__________
on __________.

 

    	 

    	 

    

  

In connection with
the foregoing and pursuant to the terms and provisions of the Credit Agreement, the undersigned hereby certifies to the Agent and
the Banks that the following statements are true and correct:

 

(i)          The
representations and warranties contained in Section 7 of the Credit Agreement and in each of the other Basic Documents are true
and complete in all material respects on and as of the date hereof with the same force and effect as if made on and as of such
date except for any representation or warranty limited by its terms to a specific date.

 

(ii)         No
Default exists or would result from the extension of credit requested hereunder.

 

(iii)        After
giving effect to the credit extended pursuant to this request, the aggregate amount of Credit Exposure does not exceed the lesser
of the Borrowing Base (plus if applicable, with respect to any commercial Letter of Credit issued to secure the purchase
price of Inventory, 80% the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit
is issued) or the aggregate Revolving Loan Commitments;

 

	Obligations	 	Totals	 
	a.	 	Current Revolving Loans	 	$		 
	b.	 	Requested Revolving Loans	 	$		 
	c.	 	Total Revolving Loans	 	$		 
	d.	 	Current Swing Line Loans	 	$		 
	e.	 	Requested Swing Line Loans	 	$		 
	f.	 	Total Swing Line Loans	 	$		 
	g.	 	Current Letter of Credit Liabilities	 	$		 
	h.	 	Requested Letter of Credit Liabilities	 	$		 
	i.	 	Total Letter of Credit Liabilities	 	$		 
	j.	 	Total Current Obligations (Sum of Lines a., d. and g.)	 	$		 
	k.	 	Total Requested Obligations (Sum of Lines b., e. and h.)	 	$		 
	l.	 	Total Obligations After Request (Sum of Lines c., f. and i.)	 	$		 
	m.	 	Aggregate Borrowing Base (from most recent Borrowing Base Report or Interim Borrowing Base Certificate)	 	$		 
	n.	 	Plus with respect to any commercial Letter of Credit issued to secure the purchase price of Inventory, 80% the cost of such Inventory that will be Eligible Inventory Ordered Under L/C once such Letter of Credit is issued	 	$		 
	o.	 	Total Aggregate Availability (sum of m. plus n.).	 	 	 	 
	p.	 	Availability after request (sum of o. minus l.)	 	 	 	 

  

All information
supplied hereon is true, correct, and complete as of the date hereof.

 

    	 

    	 

    

 

	 	 	 	Company:
	 	 	 	 
	 	 	 	EMPIRE RESOURCES, INC.
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:	 
	 	 	 	 	Title:	 
	 	 	 	 
	Dated as of:	 	 	 
	(insert proposed date of the	 	 
	requested extension of credit)	 	 

 

    	 

    	 

    

 

EXHIBIT J

 

FORM OF

NOTICE OF PREPAYMENT, CONTINUATION OR
CONVERSION

 

Coöperatieve Centrale

Raiffeisen-Boerenleenbank B.A.,

“Rabobank Nederland”,

New York Branch, as agent

 

c/o Rabobank International

245 Park Avenue

New York, NY 10167

	Phone No.	212-808-6815
	Fax No.	212-916-3731
	Attention:	Frank Imperato / Naoko Kojima / Xander Willemsen

 

and each Bank

 

Ladies and Gentlemen:

 

The undersigned is
an authorized officer of Empire Resources, Inc. (the “Company”) and is authorized to make and deliver this notice
pursuant to that certain Amended and Restated Credit Agreement dated as of June 19, 2014 (as amended, restated, supplemented or
otherwise modified from time to time, the “Credit Agreement”) among the Company, the banks from time to time
party thereto and Coöperatieve Centrale Raiffeisen–Boerenleenbank B.A., “Rabobank Nederland”, New York Branch,
as agent (in such capacity, together with its successors in such capacity, the “Agent”). All terms defined in
the Credit Agreement shall have the same meaning herein.

 

____       The
Company hereby gives Agent notice of prepayment of a Loan. Details of this prepayment are set forth on Schedule 1 hereto.

 

____       The
Company hereby gives Agent notice of the continuation of a Eurodollar Loan. Details of this Continuation are set forth on Schedule 2
hereto.

 

____       The
Company hereby gives Agent notice of the conversion of a Loan from one Type to another Type. Details of this Conversion are set
forth on Schedule 3 hereto.

 

In connection with
the foregoing and pursuant to the terms and provisions of the Credit Agreement, the undersigned hereby certifies to the Agent and
the Banks that the following statements are true and correct:

 

(a)          The
representations and warranties contained in Section 7 of the Credit Agreement and in each of the other Basic Documents are true
and complete in all material respects on and as of the date hereof with the same force and effect as if made on and as of such
date except to the extent that such representations and warranties relate specifically to another date.

 

    	Notice of Prepayment Continuation or Conversion, Page 1

    	 

    

  

(b)          No
Default exists or would result from the request made hereunder.

 

	 	 	 	Company:
	 	 	 	 
	 	 	 	EMPIRE RESOURCES INC.
	 	 	 	 	 
	 	 	 	By:	 
	 	 	 	 	Name:	 
	 	 	 	 	Title:	 
	 	 	 	 
	Dated as of:	 	 	 

 

    	Notice of Prepayment Continuation or Conversion, Page 2

    	 

    

  

SCHEDULE 1

 

NOTICE OF PREPAYMENT

 

1.          The
date of prepayment is ______________ __, 20__.1

 

2.          The
aggregate amount of the prepayment is $_____________.

 

3.          The
prepayment should be applied as follows:

 

___       Revolving
Loan in the amount of $___________ (minimum amount of $1,000,000 and $250,000 increments for all Eurodollar Loans; and minimum
of $250,000 or multiples of $50,000 in excess thereof in the case of Base Rate Loans)

 

___       Swing
line Loan in the amount of $___________ (minimum amount of $500,000 and $25,000 increments)

 

 

1 Notice by 10:00 A.M. on the
Business Day of the proposed prepayment is required for prepayments of Base Rate Loans and Swing Line Loans. Three Business Days’
notice is required for prepayments of Eurodollar Loans.

 

    	SCHEDULE 1 to Notice of Prepayment Continuation or Conversion, Solo Page 1

    	 

    

  

SCHEDULE 2

 

NOTICE OF CONTINUATION

 

1.          The
Continuation Date is ______ __, 20__.2

 

2.          The
aggregate amount of the Eurodollar Loans to be continued is $__________.

 

3.          The
Eurodollar Loans to be continued should be continued as Eurodollar Loans in the amounts and with the Interest Periods specified
below:

 

	Amount	 	 	Interest Period	 	 	 	Maturity Date	 
	1.	 	 	_____ Month(s)	 	 	 	 	 
	2.	 	 	_____ Month(s)	 	 	 	 	 
	3.	 	 	_____ Month(s)	 	 	 	 	 
	4.	 	 	_____ Month(s)	 	 	 	 	 

  

 

2 Notice by 10:00 A.M. on the
Business Day of the proposed continuation is required for Base Rate Loans and three Business Days’ notice is required for
a continuation of Eurodollar Loans.

 

    	SCHEDULE 2 to Notice of Prepayment Continuation or Conversion, Solo Page 1

    	 

    

  

SCHEDULE 3

 

NOTICE OF CONVERSION

 

1.          The
Conversion Date is ______ __, 20__.3

 

2.          The
aggregate amount of the Loans to be converted is $__________.

 

3.          The
Account to be converted is currently a:

 

____      
[Base Rate Loan] [Eurodollar Loan] and should be converted into:

 

___      Base
Rate Loans in the amount of $ _________;

 

___      Eurodollar
Loans with the amount of each Eurodollar Loan and duration of the Interest Periods with respect thereto to be as follows:

 

	Amount	 	 	Interest Period	 	 	 	Maturity Date	 
	1.	 	 	_____ Month(s)	 	 	 	 	 
	2.	 	 	_____ Month(s)	 	 	 	 	 
	3.	 	 	_____ Month(s)	 	 	 	 	 
	4.	 	 	_____ Month(s)	 	 	 	 	 

  

 

3 A Conversion can only occur
on the last day of the Interest Period applicable to a Eurodollar Loan. Notice by 10:00 A.M. on the Business Day of the proposed
conversion is required for Base Rate Loans and three Business Days’ notice is required for a conversion into Eurodollar Loans.

 

    	SCHEDULE 3 to Notice of Prepayment Continuation or Conversion, Solo Page 2

    	 

    

 

SCHEDULE A

TO

EMPIRE RESOURCES, INC.

AMENDED AND RESTATED

CREDIT AGREEMENT

 

Commitments

 

	Banks	 	Commitment	 	 	Revolving Loan Commitment
 Percentage	 
	Coöperatieve Centrale Raiffeisen-Boerenleenbank B.A., “Rabobank Nederland”, New York Branch	 	$	37,500,000	 	 	 	25.0000	%
	BNP Paribas	 	$	30,000,000	 	 	 	20.0000	%
	Société Générale S.A.	 	$	20,000,000	 	 	 	13.3333	%
	ABN AMRO Capital USA LLC	 	$	25,000,000	 	 	 	16.6667	%
	RB International Finance (USA) LLC	 	$	22,500,000	 	 	 	15.0000	%
	Brown Brothers Harriman & Co.	 	$	15,000,000	 	 	 	10.0000	%
	Total	 	$	150,000,000.00	 	 	 	100.0000	%

 

SCHEDULE A, SOLO PAGE

    	 

    	 

    

 

SCHEDULE I

TO

EMPIRE RESOURCES, INC.

AMENDED AND RESTATED

CREDIT AGREEMENT

 

Indebtedness

 

		1.	The €10,000,000 Imbali Facility and the Imbali Guaranty.

 

		2.	The $75,000,000 Uncommitted Credit Agreement.

 

SCHEDULE I (Indebtedness), SOLO PAGE

    	 

    	 

    

 

SCHEDULE II

TO

EMPIRE RESOURCES, INC.

AMENDED AND RESTATED

CREDIT AGREEMENT

 

Investments

 

		1.	Imbali Guaranty.

 

		2.	See Schedule III.

 

		3.	$10,000,000 loan to PT. Alumindo, Southern Aluminum Industry
and Fung Lam Trading Company that matures January 1, 2016.

 

    	 

    	 

    

 

SCHEDULE III

TO

EMPIRE RESOURCES, INC.

AMENDED AND RESTATED

CREDIT AGREEMENT

 

Subsidiaries

 

	Subsidiary Name	 	Jurisdiction of
 Organization	 	Persons Holding
 Equity Interest	 	Authorized
 Equity Interest	 	Outstanding Equity
 Interest	 	Percentage of
 Ownership	 
	Empire Resources Pacific, Ltd.	 	Delaware	 	Empire Resources, Inc.	 	1,000 shares of common stock	 	100 shares of common stock	 	 	100	%
	Imbali Metals Bvba	 	Belgium	 	Empire Resources, Inc.	 	1,000 shares	 	1,000 shares	 	 	100	%
	6900 Quad Avenue, LLC	 	Delaware	 	Empire Resources, Inc.	 	N/A	 	N/A	 	 	100	%

 

SCHEDULE III (Subsidiaries), SOLO PAGE

    	 

    	 

    

 

SCHEDULE IV

TO

EMPIRE RESOURCES, INC.

AMENDED AND RESTATED

CREDIT AGREEMENT

 

Limitations on Dividend Clause and Negative
Pledge Clauses

 

None.

 

    	 

    	 

    

 

SCHEDULE V

TO

EMPIRE RESOURCES, INC.

AMENDED AND RESTATED

CREDIT AGREEMENT

 

Credit Insurance

 

Coface North America Insurance Company Policy Number E-489020205

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