Document:

Exhibit 10.6

 

AMENDMENT NO. 3 TO NOTE PURCHASE AGREEMENT

 

THIS AMENDMENT NO. 3 TO
NOTE PURCHASE AGREEMENT (this “Amendment”), dated as of December 15, 2015 (the “Effective
Date”), is by and among LAPOLLA INDUSTRIES, INC., a Delaware corporation (the “Borrower”),
ENHANCED CREDIT SUPPORTED LOAN FUND, LP, a Delaware limited partnership, and the other Purchasers party hereto. Unless otherwise
defined herein or the context otherwise requires, capitalized terms used herein shall have the meanings ascribed thereto in the
Note Purchase Agreement (as defined below).

 

WHEREAS, the Purchasers
have extended certain credit facilities in favor of the Borrower pursuant to that certain Note Purchase Agreement, dated as of
December 10, 2013 by and between the Borrower and the Purchasers (as amended by that certain Amendment No. 1 dated April 8, 2014
(“Amendment No. 1”), and that certain Amendment No. 2 dated November 14, 2014 the “Note Purchase
Agreement”); and

 

WHEREAS, the Borrower
and the Purchasers have agreed, subject to the terms and conditions hereof, to amend the Note Purchase Agreement by (i) changing
certain covenants in the Note Purchase Agreement, and (ii) providing for the payment of legal fees in connection with this amendment;
and

 

NOW, THEREFORE,
in consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy
of which are hereby acknowledged, the parties hereto agree as follows:

 

1.                 
Amendment to Note Purchase Agreement. Upon execution of this Amendment by the parties hereto, the
Note Purchase Agreement is amended as of the Effective Date as follows:

(a)               
Section 1.1 is hereby amended by adding the definition of Amendment No. 3 to Note Purchase Agreement as follows:

“Amendment No. 3 to Note
Purchase Agreement” means that certain Amendment No. 3 to Note Purchase Agreement dated as of December 15, 2015 between
the Purchasers and the Borrower.

 

(b)              
Section 1.1 is hereby amended by amending and restating the definitions of “Maturity Date” as follows:

“Maturity Date: means
December 10, 2017, or such earlier date on which the Notes become due and payable pursuant to Sections 2.5, 8.2 or 8.3.”

 

(c)               
Section 2.4(a) is hereby amended and restated as follows:

“(a) Base Interest Rate. Unless
an Event of Default has occurred and is continuing, the outstanding principal amount of the Notes and all other accrued but unpaid
Obligations shall bear interest as set forth in this Section 2.4. The Borrower shall pay to the holders of the Notes accrued interest
in cash (the “Current Pay Interest”) on the last Business Day of each month (the “Monthly Payment Date”),
at a rate (the “Aggregate Interest Rate”) equal to (i) on and prior to April 30, 2016, or after April 30, 2016
to the extent the outstanding principal on the Notes measured as of April 30, 2016 is equal to or less than $4,000,000, 11.5% per
annum and (ii) after April 30, 2016 to the extent the outstanding principal on the Notes measured as of April 30, 2016 is in excess
of $4,000,000, 12.5% per annum. Unless prohibited under applicable law, any accrued interest which is not paid within 3 calendar
days of the date on which it is due and payable shall bear interest at the Aggregate Interest Rate until such time as payment therefore
is actually paid to the holders of the Notes. Any accrued interest which for any reason has not theretofore been paid shall be
due and payable in full on the Maturity Date.”

 

(d)              
Section 2.5(b) is hereby amended by replacing the reference to “Capital Stock (other than Permitted Issuances)”
with “Capital Stock” and the reference to “Indebtedness (other than Permitted Indebtedness” with “Indebtedness
(other than Senior Indebtedness)”.

 

(e)               
Section 7.18 is hereby amended and restated as follows:

Section 7.18Minimum EBITDA.
Permit its EBITDA for the three (3) months ending on the last day of each month set forth below to be less than the corresponding
amount set forth below for such period:

 

	Three Month Period Ended	Minimum EBITDA
	February 28, 2014	$176,963*
	March 31, 2014	($212,190)
	April 30, 2014	($116,215)
	May 31, 2014 	$170,247
	June 30, 2014	$543,179
	July 31, 2014	$748,637
	August 31, 2014	$315,939
	September 30, 2014	$183,756
	October 31, 2014	$95,992
	November 30, 2014	$94,682
	December 31, 2014	($11,955)
	January 31, 2015	($140,955)
	February 28, 2015	($189,015)
	March 31, 2015	($75,812)
	April 30, 2015	$68,800
	May 31, 2015	$190,880
	June 30, 2015	$317,601
	July 31, 2015	$392,527
	August 31, 2015	$461,035
	September 30, 2015	$497,861
	October 31, 2015	$990,591
	November 30, 2015	$709,359
	December 31, 2015	$313,384
	January 31, 2016	$278,385
	February 29, 2016	$221,385
	March 31, 2016	$241,497
	April 30, 2016	$299,266
	May 31, 2016	$441,108
	June 30, 2016	$595,214
	July 31, 2016	$737,307

(*) For purposes of the February 2014
minimum EBITDA calculation the Borrower will be permitted to add-back to EBITDA the amount of $236,737 which represents a portion
of the Note Receivable to Dena Lynn Sosebee and Chemical Design, Corporation dated May 14, 2013 in the amount of $515,708.69 and
Amended on February 14, 2014 in the amount of $473,473.40 which the Borrower elected to reserve $236,737 as of December 31, 2013.

 

(f)               
Section 7.19 is hereby amended and restated as follows:

“Section 7.19Fixed Charge
Coverage Ratio. Permit its Fixed Charge Coverage Ratio for the twelve (12) months ending on the last day of each calendar month
to be less than (i) 0.90 to 1.0 for the periods ended December 31, 2013, January 31, 2014, February 28, 2014, May 31, 2014, June
30, 2014, (ii) 0.80 to 1.0 for the periods ended March 31, 2014 and April 30, 2014 and (iii) 1.0 to 1.0 for the periods ended July
31, 2014, October 31, 2014, January 31, 2015, April 30, 2015, and July 31, 2015, and (iv) 1.25 to 1.0 for the periods ending October
31, 2015 and thereafter, provided that, if Borrower fails to maintain such Fixed Charge Coverage Ratio as of any date of determination
but, on or before the date Borrower is required to provide to Agent its monthly financial statements in accordance with Section
6.1(a) hereof for the month ending as of such date of determination, Borrower incurs additional Subordinated Debt (up to the
aggregate limit of $500,000 set forth in the definition of Fixed Charge Coverage Ratio) that, when included in the determination
of Fixed Charge Coverage Ratio as of such date of determination would prevent a breach of this covenant, then Borrower shall be
deemed to have satisfied this covenant as of such date of determination and no Default shall have occurred as a result thereof.”

 

2.                 
Loan Documents Generally. All references to the Note Purchase Agreement in the Loan Documents and
any other documents evidencing, securing or otherwise relating to the credit extended by Purchasers in favor of Borrower shall
mean the Note Purchase Agreement and as modified hereby and this Amendment shall itself constitute a Loan Document.

3.                 
Representations and Warranties. The Borrower hereby represents and warrants to the Purchasers that:

 

(a)               
No Default or Event of Default will exist after giving pro forma effect to this Amendment, the consent contained
herein and the transactions contemplated by and consented to in this Amendment;

(b)              
Giving effect to this Amendment, the representations and warranties set forth in the Note Purchase Agreement are,
subject to the limitations set forth therein, true and correct in all material respects as of the date hereof (except for those
which expressly relate to an earlier date) and each of such representations and warranties (except to
the extent such representations and warranties expressly relate to an earlier date) together with each of the representations and
warranties contained in this Amendment shall be true and correct on and as of the date of consummation of the transactions contemplated
by and consented to in this Amendment, as if such representations and warranties were made on such date;

(c)               
The Borrower has the organizational power and authority to execute and deliver this Amendment and to perform its
obligations hereunder and has taken all necessary organizational action to authorize the execution, delivery and performance by
it of this Amendment; and

(d)              
The Borrower has duly executed and delivered this Amendment, and this Amendment constitutes its legal, valid and
binding obligation enforceable in accordance with its terms.

4.                 
Amendment; No Implied Waiver. This Amendment shall be limited precisely as written and shall not
operate as a consent to any other action or inaction by the Borrower, or as a waiver or amendment of any right, power, or remedy
of the Purchasers under the Note Purchase Agreement or the other Loan Documents nor constitute a consent to any action or inaction,
or a waiver or amendment of any provision contained in the Note Purchase Agreement and the other Loan Documents except as specifically
provided herein.

 

5.                 
Reaffirmation of Borrower Obligations; Other Acknowledgement and Consents. The Borrower hereby:

(a)               
Agrees that it is truly and justly indebted to the Purchasers for all of the Borrower’s obligations under the
Note Purchase Agreement and the other Loan Documents without defense, offset or counterclaim of any kind whatsoever and reaffirms
and admits the validity and enforceability of the Note Purchase Agreement and the Loan Documents to which it is a party and the
liens upon and security interests in the collateral which were granted pursuant to the Loan Documents to which it is a party;

(b)              
Consents to the execution and delivery of this Amendment by the Borrower and to the terms and conditions set forth
herein and any other waivers, consents or amendments which the Purchasers deems appropriate;

(c)               
Agrees to be bound by the terms and conditions of the Note Purchase Agreement as amended or modified by this Amendment;

(d)              
Acknowledges and agrees that all obligations of the Borrower under the Note Purchase Agreement, as amended and modified
by this Amendment, and the other Loan Documents pursuant to which the Borrower grants any security to the Purchasers, are secured
pursuant to the Loan Documents and all references in the Loan Documents to the secured obligations or language of similar meaning
shall hereafter be deemed to include the Borrower’s obligations to the Purchasers under the Note Purchase Agreement, as modified
by this Amendment and the other instruments, documents and agreements executed and delivered pursuant hereto or in connection herewith;
and

(e)               
Notwithstanding any prior disregard of any of the terms of the Note Purchase Agreement or any of the Loan Documents,
agrees that the terms of the Note Purchase Agreement and each of the Loan Documents shall be strictly adhered to on and after the
date hereof in accordance with the terms hereof.

6.                 
Effectiveness. This Agreement shall become effective as of the date set forth on the first page
hereof at such time as each of the following conditions is satisfied:

(a)               
Representations. The representations and warranties contained herein and in all other Loan Documents shall
be true and correct as of the date hereof as if made on the date hereof.

(b)              
Default. No Default or Event of Default shall have occurred and be continuing.

(c)               
This Agreement. Agent shall have received counterparts of this Amendment, duly executed by Borrower and each
Purchaser, and acknowledgment of this Agreement from each Guarantor.

(d)              
Kurtz Document. Agent shall have received the Amended and Restated Guaranty by Richard Kurtz in favor of Agent,
in form and substance satisfactory to Agent.

(e)               
Corporate Documentation. Agent shall have received (i) a secretary certificate certifying the resolutions
of the board of directors of Borrower authorizing the execution of this Amendment and (ii) an opinion of counsel for the Borrower
in form and substance satisfactory to Agent with respect to this Amendment and Amendment No. 1

(f)               
Fees and Expenses. Agent shall have received reimbursement for all outstanding fees and expenses of the Agent.

7.                 
Further Assurances. The Borrower will execute such additional documents as are reasonably requested
by the Purchasers to reflect the terms and conditions of this Amendment and will cause to be delivered such agreements, certificates,
legal opinions and other documents as are reasonably required by the Purchasers.

8.                 
Counterparts/Telecopy. This Amendment may be executed by the parties hereto in several counterparts,
each of which shall be deemed to be original and all of which shall constitute together but one and the same agreement. Delivery
of executed counterparts of this Amendment by telecopy shall be effective as an original and shall constitute a representation
that an original shall be delivered.

9.                 
Governing Law/Consent to Jurisdiction/Waiver of Jury Trial. THIS AMENDMENT SHALL BE DEEMED TO
BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF NEW YORK AND THE PARTIES HERETO HEREBY CONSENT TO THE
JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK COUNTY AND OF THE UNITED STATES DISTRICT COURT OF THE 2ND
CIRCUIT, AND ANY APPELLATE COURT FROM ANY THEREOF, IN ANY ACTION BROUGHT TO ENFORCE ANY RIGHTS UNDER THIS AGREEMENT AND ANY RELATED
DOCUMENT OR INSTRUMENT. EACH OF THE PARTIES HERETO HEREBY WAIVES THE RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, COUNTERCLAIM OR
PROCEEDING ARISING OUT OF OR RELATED TO THIS AMENDMENT.

10.             
Survival. All warranties, representations and covenants made by Borrower herein, or in any agreement
referred to herein or in any certificate, document or other instrument delivered by it or on its behalf under this Amendment, shall
be considered to have been relied upon by the Purchasers. All statements in any such certificate or other instrument shall constitute
warranties and representations by Borrower hereunder. All warranties, representations, and covenants made by Borrower hereunder
or under any other agreement or instrument shall be deemed continuing until the payment in full, in cash, and indefeasible satisfaction
of all obligations and any other obligations of Purchasers and any commitment of Purchasers to extend credit to Borrower shall
have been irrevocably terminated.

[Signatures are on the following page]

     

     

    

IN WITNESS WHEREOF, the Borrower
and the other parties listed below have caused this Amendment to be duly executed as of the day and year first above written.

 

BORROWER:

 

LAPOLLA INDUSTRIES, INC.

 

 

By: /s/ Michael T. Adams,
EVP

Michael T. Adams,
Executive Vice President

 

 

 

AS AGENT FOR PURCHASER AND AS
PURCHASER:

 

ENHANCED CREDIT SUPPORTED LOAN FUND,
LP

By: Enhanced CSLF GP, LLC, its general
partner

 

By: /s/ Douglas Cruishank

Name: Douglas Cruikshank

Title: Manager

 

 

 

PURCHASER:

 

 

ENHANCED JOBS FOR TEXAS FUND, LLC

By: Enhanced Capital Group, LLC,
its member

 

By: /s/ Michael A.G. Korengold

Name: Michael A.G. Korengold

Title: President and CEO

 

 

 

     

     

    

RATIFICATION, ACKNOWLEDGMENT
AND CONSENT OF GUARANTORS

 

Each of the undersigned Guarantors hereby (i) acknowledges
that such Guarantor has read the preceding Amendment No. 3 to Note Purchase Agreement (the “Second Amendment”) dated
as of December 15, 2015 between LaPolla Industries, Inc., Enhanced Credit Supported Loan Fund, LP, and the other parties thereto.;
(ii) reaffirms and ratifies such Guarantor’s obligations under Guarantor’s Guaranty made by such Guarantor as
of December 10, 2013 to and for the benefit of Agent (as defined therein) (together with all amendments,
supplements, exhibits and modifications thereto, each a “Guaranty”), and (iii) acknowledges
that Guarantor’s obligations pursuant to the Guaranty are enforceable without defense, offset or counterclaim.

 

IN WITNESS WHEREOF, each Guarantor hereby executes
this instrument as of December 15, 2015.

FOREST HILL TERRACE ASSOCIATES, L.P.

BY: FOREST HILL TERRACE ASSOCIATES, GP, LLC,
its General Partner

By:/s/ Richard J. Kurtz

Name: Richard J. Kurtz

Title: Managing Member

 

FOREST HILL TERRACE ASSOCIATES, GP, LLC

By:/s/ Richard J. Kurtz

Name: Richard J. Kurtz

Title: Managing MemberExhibit 10.7

 

AMENDED
AND RESTATED GUARANTY AGREEMENT

THIS AMENDED AND
RESTATED GUARANTY AGREEMENT (“Guaranty Agreement”), dated as of December 15, 2015, is executed and delivered
by Richard J. Kurtz, an individual (“Guarantor”) to Enhanced Credit Supported Loan Fund, LP, as Agent under
the Note Purchase Agreement (“Agent”). This Guaranty Agreement amends and restates in its entirety that certain
Guaranty Agreement dated as of December 10, 2013 by Guarantor in favor of Agent, as amended.

Definitions

The following terms
shall have the following meanings wherever used in this Guaranty Agreement:

“Agent”
has the meaning specified in the introductory paragraph hereof.

“Applicable
Law” means all laws, rules, regulations and governmental guidelines applicable to the Person, conduct, transaction, agreement
or matter in question, including all applicable statutory law, common law and equitable principles, and all provisions of constitutions,
treaties, statutes, rules, regulations, orders and decrees of governmental authorities.

“Borrower”
means Lapolla Industries, Inc., a Delaware corporation.

“Full Payment”
means the full and indefeasible cash payment of all Obligations under the Note Purchase Agreement.

“Guaranteed
Obligations” means the Obligations from time to time owing by Borrower to the Purchasers under or in respect of the Note
Purchase Agreement, including without limitation, all unpaid principal and accrued interest thereunder and all costs, fees and
expenses owing by Borrower to Purchasers with respect thereto.

“Guarantor”
has the meaning specified in the introductory paragraph hereof.

“Guaranty
Agreement” has the meaning specified in the introductory paragraph hereof.

“Note Purchase
Agreement” means the certain Note Purchase Agreement, dated as of December 10, 2013, between Borrower, Agent and the
other parties thereto from time to time (as such agreement may be renewed, extended, amended, restated, amended and restated, supplemented,
increased, restated, replaced or otherwise modified from time to time).

“Obligations”
means the “Obligations” as defined in the Note Purchase Agreement (which definition is incorporated herein by
reference), which includes but is not limited to the Guaranteed Obligations.

“Person”
means any individual, corporation, limited liability company, partnership, joint venture, joint stock company, land trust, business
trust, unincorporated organization, governmental authority or other entity.

“Pledge
Agreement” means that certain pledge agreement dated as of December 10, 2013 between Guarantor and Agent, as amended
or amended and restated from time to time.

“Properly
Contested” means with respect to any obligation of the Guarantor, (a) the obligation is subject to a bona fide dispute
regarding amount of the Guarantor’s liability to pay; (b) the obligation is being properly contested in good faith by appropriate
proceedings promptly instituted and diligently pursued; (c) non-payment could not have a Material Adverse Effect, nor result in
forfeiture or sale of any assets of the Guarantor; (d) no Lien is imposed on the assets of the Guarantor, unless bonded and stayed
to the satisfaction of Agent; and (e) if the obligations results from entry of a judgment or other order, such judgment or order
is stayed pending appeal or other judicial review.

“Taxes”
means 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.

“Total
Asset Value” means the fair market value of Guarantor’s assets, excluding any assets held in trust for the benefit
of Guarantor.

Other terms defined
in the Note Purchase Agreement, wherever used herein, unless otherwise defined herein, shall have the same meanings in this Guaranty
Agreement as are provided by the Note Purchase Agreement, and each of such definitions hereby is deemed to be incorporated herein
by reference. Guarantor expressly acknowledges that he has read and is familiar with all such incorporated definitions and agrees
that incorporation of same herein shall be deemed to have the same effect and enforceability herein as though each of such incorporated
definitions is set forth herein at length.

RECITALS:

A.Borrower and
Agent have executed and entered into the Note Purchase Agreement, which (among other things) provides for loans by Purchasers to
Borrower on the terms and conditions prescribed therein.

B.This Guaranty
Agreement is required by the Note Purchase Agreement and Guarantor’s execution and delivery hereof is a condition (among
other conditions) to the making of the loans under the Note Purchase Agreement.

C.Guarantor
owns a majority of the issued and outstanding Capital Stock of Borrower and has determined that (i) Guarantor will directly and
indirectly benefit from the availability of financing to Borrower under the Note Purchase Agreement and the other transactions
evidenced by and contemplated by the Loan Documents, (ii) Guarantor will benefit, directly and indirectly, from executing and delivering
this Guaranty Agreement and (iii) it is in Guarantor’s best interest to execute and deliver and, if called upon to do so,
to perform his obligations under this Guaranty Agreement.

NOW, THEREFORE,
for good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Guarantor hereby agrees as follows:

1.                 
Guaranty of Guaranteed Obligations. This Guaranty Agreement is executed by Guarantor pursuant to the Note Purchase
Agreement and is for the benefit of Agent and the Purchasers. As an inducement to the Purchasers to enter into the Loan Documents
and make the loans and other financial accommodations to Borrower under the Loan Documents, for value received, Guarantor hereby
unconditionally, irrevocably and absolutely guarantees to Agent the prompt and Full Payment of the Guaranteed Obligations when
due or declared to be due and at all times thereafter. Notwithstanding anything to the contrary contained herein, the Guaranteed
Obligations shall be deemed to be due or declared due upon an Event of Default to the extent Agent is prevented by Applicable Law
or any subordination agreement from exercising its right to accelerate the maturity of all or any portion of the Guaranteed Obligations,
to collect interest thereon, or to enforce or exercise any other right or remedy with respect thereto.

2.                 
Nature of Guaranty. This Guaranty Agreement is and shall be an absolute, unconditional, irrevocable and continuing
unlimited guaranty of payment, and not solely of collection. Guarantor guarantees that the Guaranteed Obligations will be paid
strictly in accordance with the terms of the Note Purchase Agreement and the other Loan Documents, without setoff or counterclaim,
and regardless of any Applicable Law now or hereafter in effect in any jurisdiction affecting any of such terms or the rights of
Agent with respect thereto. The Guaranteed Obligations may be increased, reduced or paid in full at any time and from time to time
without affecting the liability or obligation of Guarantor under this Guaranty Agreement with respect to all Guaranteed Obligations,
whenever incurred or arising. All Guaranteed Obligations now or hereafter arising shall be conclusively presumed to have been made
or acquired in acceptance hereof. Guarantor shall be liable, jointly and severally, with Borrower and any other Person now or hereafter
obligated in respect of the payment of the Guaranteed Obligations, or any portion thereof. It is the intention of Guarantor and
Agent that Guarantor’s liabilities and obligations hereunder shall not be discharged except by Guarantor’s Full Payment
of such liabilities and obligations and then only to the extent of such payment (to the extent not otherwise satisfied by Borrower
or any other Person now or hereafter obligated in respect of the Guaranteed Obligations). To secure the Guarantor’s obligations
under this Guaranty, the Guarantor has executed the Pledge Agreement.

3.                 
Representations and Warranties. Guarantor hereby represents and warrants to Agent as follows:

(a)               
This Guaranty Agreement is a legal, valid and binding obligation of Guarantor, enforceable in accordance with its terms,
except as enforceability may be limited by bankruptcy, insolvency or similar laws affecting the enforcement of creditors’
rights generally.

(b)              
Guarantor has filed all federal, and all material state and local tax returns and other reports that he is required by law
to file, and has paid, or made provision for the payment of, all federal Taxes and all other material Taxes upon him, his income
and his properties that are due and payable, except to the extent being Properly Contested.

(c)               
Guarantor is in compliance, in all material respects with all Applicable Law, except where noncompliance could not reasonably
be expected to have a Material Adverse Effect.

(d)              
Guarantor has received and will receive a direct and indirect material benefit from the transactions evidenced by and contemplated
in the Note Purchase Agreement and the other Loan Documents. The value of the consideration received and to be received by Guarantor
is reasonably worth at least as much as the liability and obligation of Guarantor hereunder.

(e)               
Guarantor is solvent and the fair market value of his assets exceeds his liabilities.

(f)               
Guarantor is currently informed of the financial condition of Borrower and of all other circumstances which a diligent inquiry
would reveal and which bear upon the risk of nonpayment of the Guaranteed Obligations. Guarantor has read and understands the terms
and conditions of the Loan Documents. Guarantor is familiar with, and has had an opportunity to review the books and records regarding,
the financial condition of Borrower and is familiar with the value of any and all property intended to be security for the payment
of all or any part of the Guaranteed Obligations; provided that Guarantor is not relying on such financial condition or the existence
or value of any such security as an inducement to enter into this Guaranty Agreement. Guarantor has adequate means to obtain, on
a continuing basis, information concerning the financial condition of Borrower. Guarantor has not been induced to enter into this
Guaranty Agreement on the basis of a contemplation, belief, understanding or agreement that any Person other than Guarantor will
be liable to pay the Guaranteed Obligations. Agent has not made any representation, warranty or statement to Guarantor in order
to induce Guarantor to execute this Guaranty Agreement.

(g)              
The assets, properties and business of the Guarantor are insured against such hazards and liabilities, under such coverages
and in such amounts, as are customarily maintained by individuals similarly situated and under policies issued by insurers of recognized
responsibility.

(h)              
Each brokerage or other security account maintained by Guarantor as of the date of this Guaranty Agreement is listed as
follows: (a) UBS, (b) Merrill Lynch, (c) Cantone Research, Inc., and (d) Wells Fargo Advisors.

(i)                
The financial information provided by the Guarantor to Agent, attached hereto as Exhibit C, regarding the financial
assets, liabilities, and income of the Guarantor is true and complete and includes all material information necessary to make such
information on the date as of which such information is dated, taken as a whole, not misleading. The financial information regarding
years for which Guarantor’s tax returns have been prepared matches the information used in the preparation and filing of
the Guarantor’s tax returns for such periods. To the extent the most recent financial information set forth in Exhibit
C is as of a date prior to the date of this Guaranty Agreement, Guarantor hereby represents and warrants that there have been
no adverse changes to the financial position of the Guarantor from such date through the date hereof, after giving effect to any
recent or pending transactions.

(j)                
The signature page to this Guaranty Agreement contains Guarantor’s full legal name and the address of his legal residence.

4.                 
Covenants. Guarantor agrees that until the Full Payment of the Obligations:

(a)               
Guarantor promises to deliver to Agent:

(i)                
promptly as soon as available and in any event within 45 days after the close of the calendar quarters ended December 31,
2015 and June 30, 2016, financial statements for Guarantor, in form and substance satisfactory to Agent;

(ii)              
promptly upon opening any brokerage or other securities account other than as listed in Section 3(h), written notice providing
the name, account, and such other information as Agent may reasonably request;

(iii)            
promptly as soon as available and in any event within 45 days after the last day of each March, June, September and December,
copies of the monthly statement for each of Guarantor’s brokerage or other securities accounts as of the last day of such
month;

(iv)            
within 45 days of the end of each calendar quarter, a Guarantor Compliance Certificate in the form attached hereto as Exhibit
A;

(v)              
within 45 days of the end of each calendar year, an opinion of counsel reasonably acceptable to Agent in substantially the
form attached hereto as Exhibit B;

(vi)            
promptly as soon as available and in any event within 10 days of filing, Guarantor’s personal federal income tax returns,
together with a certification by a tax accountant reasonably satisfactory to Agent that the annual financial information provided
by Guarantor pursuant to Section 4(a)(i) has been reviewed by such accountant, matches the information used by the accountant in
preparation of the Guarantor’s filed tax return, and is not wrong or misleading to the knowledge of the accountant;

(vii)          
such other reports and information (financial or otherwise) as Agent may request from time to time in connection with Guarantor’s
financial condition or business.

(b)              
Guarantor shall comply with all Applicable Law with respect to Guarantor unless failure to comply (other than failure to
comply with any laws relating to terrorism or money laundering, including the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001) could not reasonably be expected to have a Material Adverse Effect
with respect to Guarantor.

(c)               
Guarantor shall pay and discharge all material Taxes prior to the date on which they become delinquent or penalties attach,
unless such Taxes are being Properly Contested.

(d)              
Guarantor shall notify Agent promptly if his legal residence changes from that listed on the signature page hereto.

(e)               
Guarantor shall not take any action that would result in the occurrence of a Change of Control.

(f)               
Guarantor shall maintain, in amounts customary for individuals engaged in comparable business activities with insurers of
recognized responsibility, (a) “all risk” casualty insurance on his properties against such hazards as are customarily
insured against by individuals engaged in comparable business activities and (b) general liability insurance.

(g)              
Guarantor’s Net Worth shall at all times be no less than $100,000,000.

(h)              
Guarantor’s Total Asset Value shall be no less than nine times the amount of the Indebtedness of the Guarantor.

(i)                
Guarantor shall not transfer, mortgage, pledge, grant or permit to exist a security interest in, or lien upon all or any
portion of his interest in Forest Hill Terrace Associates GP, L.L.C.

(j)                
From and after August 31, 2014, Guarantor shall not provide (i) Subordinated Debt to Borrower in excess of $500,000
or (ii) capital contributions to Borrower, in each case without the prior written consent of the Agent.

(k)              
Guarantor shall not, without the prior written consent of Agent, repay in part or in full, directly or indirectly, the Senior
Indebtedness.

(l)                
To the extent Guarantor receives any cash or property from the Company, whether pursuant to a repayment, payment, dividend
or otherwise, Guarantor shall deliver to Agent 30% of the first $500,000 so received and 100% of any amounts received in excess
of $500,000.

(m)            
On or before April 30, 2016, Guarantor shall pay $2,000,000 to Agent for the benefit of the Purchasers (the “April
Payment”). The amount of the April Payment will be reduced by an amount equal to any payments made by Guarantor to Agent
pursuant to Section 4(l) and by any repayments of principal made by the Company to the Agent pursuant to the Note Purchase Agreement
following the date hereof and on or prior to April 30, 2016.

(n)              
On or prior to August 31, 2016, Guarantor shall pay in full all of the Guaranteed Obligations to Agent for the benefit of
the Purchasers.

5.                 
Obligations Not Impaired. Guarantor agrees that his obligations hereunder and under the other Loan Documents to which
he is a party shall not be released, diminished, impaired, reduced or affected by the occurrence of any one or more of the following
events: (i) lack of organizational authority of Borrower; (ii) any receivership, insolvency, bankruptcy or other proceedings
affecting Borrower or its property; (iii) partial or total release or discharge of Borrower or other Person from the performance
of any obligation contained in any instrument or agreement evidencing, governing or securing all or any part of the Guaranteed
Obligations, whether occurring pursuant to any Applicable Law or otherwise; (iv) any change in the time, manner or place of payment
of, or in any other term of, or any increase in the amount of, all the Guaranteed Obligations, or any portion thereof, or any other
amendment or waiver of any term of, or any consent to departure from any requirement of, any of the Loan Documents; (v) the taking
or accepting of any collateral security for all or any part of the Guaranteed Obligations, this Guaranty Agreement or any other
guaranty; (vi) the taking or accepting of any other guaranty for all or any part of the Guaranteed Obligations; (vii) any failure
to acquire, perfect or continue any Lien on Collateral securing all or any part of the Guaranteed Obligations or on any other property
securing this Guaranty Agreement; (viii) any exchange, release or subordination of any Lien on any Collateral, or any release,
amendment, waiver or subordination of any term of any guaranty of the Guaranteed Obligations or any other impairment of any collateral
security or guaranty now or hereafter securing all or any part of the Guaranteed Obligations; (ix) any failure to dispose of any
collateral security at any time securing all or any part of the Guaranteed Obligations in a commercially reasonable manner or as
otherwise may be required by any Applicable Law; (x) any merger, reorganization, consolidation or dissolution of Borrower, any
sale, lease or transfer of any or all of the assets of Borrower, or any change in name, business, organization, location, composition,
structure or organization of Borrower; (xi) any Change of Control or any other change in the shareholders of Borrower; (xii) any
invalidity or unenforceability of or defect or deficiency in any of the Loan Documents; (xiii) avoidance or subordination of the
Guaranteed Obligations, or any portion thereof; (xiv) the unenforceability of all or any part of the Guaranteed Obligations against
Borrower because any interest contracted for, charged, or received in respect of the Guaranteed Obligations exceeds the amount
permitted by any Applicable Law; (xv) any waiver, consent, extension, forbearance, or granting of any indulgence by Agent with
respect to the Guaranteed Obligations or any provision of any of the Loan Documents; (xvi) any delay in or lack of enforcement
of any remedies under the Loan Documents; (xvii) the act of creating all or any part of the Guaranteed Obligations is ultra vires,
or the officers or other representatives creating all or any part of the Guaranteed Obligations acted in excess of their authority;
(xviii) any election of remedies by Agent; (xix) any of the Loan Documents were forged; (xx) the election by Agent in any proceeding
under the Bankruptcy Code of the application of Section 1111(b)(2) thereof; (xxi) any borrowing or grant of a security interest
by Borrower, as debtor-in-possession, under Section 364 of the Bankruptcy Code, or the use of cash collateral by Borrower, or any
consent by Agent to any of the foregoing; (xxii) the disallowance in bankruptcy of all or any portion of the claims of any of Agent
for payment of any of the Guaranteed Obligations; or (xxiii) any other circumstance which might otherwise constitute a legal or
equitable discharge or defense available to Borrower or Guarantor, (other than Full Payment of the Guaranteed Obligations).

6.                 
Consent and Waiver.

(a)               
Guarantor hereby waives, to the maximum extent permitted under Applicable Law: (i) notice of acceptance of this Guaranty
Agreement or other Loan Documents to which he is a party; (ii) notice of any loans or other financial accommodations made or extended
under the Loan Documents; (iii) notice of the amount of the Guaranteed Obligations; (iv) notice of any adverse change in the financial
condition of Borrower or other Person or of any other fact that might affect Guarantor’s risk with respect to the Guaranteed
Obligations; (v) notice of presentment for payment, demand, protest, and notice thereof, notice of intent to accelerate, notice
of acceleration, notice of dishonor, diligence, or promptness in enforcement and indulgences of every kind as to the Guaranteed
Obligations; (vi) notice of any of the events or circumstances enumerated in paragraph 5 hereof, and all other notices and demands
to which Guarantor might otherwise be entitled (except if such notice is specifically required to be given to Guarantor hereunder
or under any of the Loan Documents to which Guarantor is a party); (vii) any requirement that Agent protect, secure, perfect,
or insure any Lien on any Collateral or other property as security for the Guaranteed Obligations or exhaust any right or take
any action against Borrower or other Person or any Collateral; (viii) the benefit of any statute of limitation applicable to enforcement
of the Guaranteed Obligations, or any portion thereof, or any Liens in the Collateral or other property as security for the Guaranteed
Obligations; (ix) all rights by which Guarantor might be entitled to require suit against Borrower or other Person in respect of
any of the Guaranteed Obligations; or (x) any other defense of Borrower or other Person (other than Full Payment of the Guaranteed
Obligations).

(b)              
Guarantor hereby waives and agrees not to assert against Agent, to the extent allowed by any Applicable Law: (i) any defense
available to Borrower against Agent arising directly or indirectly from the present or future lack of perfection, sufficiency,
validity, or enforceability of the Guaranteed Obligations or any Lien in the Collateral or any other property as security for the
Guaranteed Obligations; and (ii) any right or defense arising by reason of any claim or defense based upon an election of remedies
by Agent under any Applicable Law.

(c)               
Agent shall have the right to seek recourse against Guarantor to the fullest extent provided for herein, and no election
by Agent to proceed in one form of action or proceeding, or against any party, or on any obligation, shall constitute a waiver
of Agent’s right to proceed in any other form of action or proceeding or against other parties unless Agent has expressly
waived such right in writing. Without limiting the foregoing, no action or proceeding by Agent under any document or instrument
evidencing the Guaranteed Obligations shall serve to diminish the liability of Guarantor under this Guaranty Agreement or other
Loan Documents to which he is a party until Full Payment of the Guaranteed Obligations.

(d)              
To the maximum extent permitted under Applicable Law, Guarantor waives, and agrees that his liability hereunder shall not
be affected by, any neglect, delay, omission, failure, or refusal of Agent to (i) exercise or properly or diligently exercise any
right or remedy with respect to any or all of the Guaranteed Obligations or the collection thereof or any Collateral or other security
for or Guaranty of the Guaranteed Obligations, or any portion thereof, (ii) take or prosecute, or properly or diligently take or
prosecute, any action for the collection of any or all of the Guaranteed Obligations against Borrower or other Person in respect
of any or all of the Guaranteed Obligations, (iii) foreclose or prosecute, or properly or diligently foreclose or prosecute, any
action in connection with any agreement, document, or instrument or arrangement evidencing, securing, or otherwise affecting all
or any part of the Guaranteed Obligations, or (iv) mitigate damages or take any other action to reduce, collect, or enforce the
Guaranteed Obligations.

(e)               
Agent may at any time, without the consent of or notice to Guarantor, without incurring responsibility to Guarantor and
without impairing, releasing, reducing, or affecting the obligations of Guarantor hereunder: (i) change the manner, place, or terms
of payment of all or any part of the Guaranteed Obligations, or renew, extend, modify, rearrange, refinance, refund, or alter all
or any part of the Guaranteed Obligations; (ii) sell, exchange, release, surrender, subordinate, realize upon, or otherwise deal
with in any manner and in any order any Collateral and any Lien securing all or any part of the Guaranteed Obligations or setoff
against all or any part of the Guaranteed Obligations; (iii) neglect, delay, omit, fail, or refuse to take or prosecute any action
for the collection of all or any part of the Guaranteed Obligations or this Guaranty Agreement or other Loan Documents or to take
or prosecute any action in connection with any of the Loan Documents; (iv) exercise or refrain from exercising any rights against
Borrower, any other Person, or otherwise act or refrain from acting; (v) settle or compromise all or any part of the Guaranteed
Obligations or subordinate the payment of all or any part of the Guaranteed Obligations to the payment of any obligations, indebtedness,
or liabilities which may be due or become due to Agent or others; (vi) apply any deposit balance, fund, payment, collections through
process of law or otherwise, or other property of Borrower or any other Person to the satisfaction of indebtedness or obligations
of Borrower to Agent not guaranteed under this Guaranty Agreement; (vii) release all or any one or more parties to any one or more
of the Loan Documents or grant other indulgences to Borrower or any other Person in respect thereof; (viii) amend or modify in
any manner and at any time or from time to time any of the Loan Documents; (ix) partially or fully release or enforce, exchange,
release or waive any security for the Guaranteed Obligations, or any portion thereof; and (x) bring suit against any and all Persons
liable or obligated in respect of the Guaranteed Obligations, collectively together, jointly and severally, or separately, and
apply any amounts obtained by Agent in such manner as Agent may elect, subject to the Loan Documents.

(f)               
Should Agent seek to enforce the obligations hereunder by action in any court or otherwise, Guarantor waives, to the maximum
extent permitted under Applicable Law, any requirement, substantive or procedural, that (i) rights or remedies be enforced first
against Borrower or any other Person liable for all or any part of the Guaranteed Obligations, including, without limitation, that
a judgment first be rendered against any such Person, or that Borrower or any other such Person should be joined in such cause
or (ii) enforcement shall first be made against any Collateral or other property which shall ever have been given to secure all
or any part of the Guaranteed Obligations. Such waiver shall be without prejudice to Agent’s right to proceed against Borrower
or any other Person, whether by separate action or by joinder.

(g)              
If, in connection with the exercise of any of its rights and remedies, Agent shall forfeit any of its rights or remedies,
including, without limitation, its right to a deficiency judgment in respect of the Guaranteed Obligations, whether because of
any Applicable Law pertaining to election of remedies, disposition of collateral, or the like, Guarantor hereby consents to such
action by Agent and waives any claim based upon such action. Any action which results in the denial or impairment of any such right
to seek a deficiency judgment against Borrower or any other Person shall not impair the obligation of Guarantor to Full Payment
of the Guaranteed Obligations or any other obligation of Guarantor contained herein.

(h)              
Guarantor agrees that if, after the occurrence and during the continuance of an Event of Default, Agent is prevented by
any Applicable Law or subordination agreement from exercising its right to accelerate the maturity of all or any portion of the
Guaranteed Obligations, to collect interest thereon, or to enforce or exercise any other right or remedy with respect thereto,
or Agent is prevented from taking any action to enforce any Lien in the Collateral or any other property as security for the Guaranteed
Obligations, Guarantor shall pay to Agent, on demand, the amount that would otherwise have been due and payable had such rights
and remedies been permitted to be exercised by Agent, as the case may be.

(i)                
Guarantor hereby assumes sole responsibility for keeping himself informed of the financial condition of Borrower and each
other Person liable for all or any part of the Guaranteed Obligations, and of all other circumstances bearing upon the risk of
nonpayment of the Guaranteed Obligations or any part thereof. Guarantor agrees that Agent shall not have any obligation or duty
to advise him of any such condition or any such circumstance.

(j)                
Guarantor consents and agrees that Agent shall not be under any obligation to marshal any assets in favor of Guarantor or
otherwise in connection with obtaining payment of any or all of the Guaranteed Obligations from any Person or source.

(k)              
Guarantor agrees that Agent may, at any time and from time to time in its discretion and with or without valuable consideration,
allow substitution or withdrawal of Collateral or other security and release Collateral or other security without impairing or
diminishing the liabilities or obligations of Guarantor hereunder.

(l)                
Guarantor agrees that Agent shall not be liable for any failure to use diligence or care in the collection of the Guaranteed
Obligations, in the creation or perfection of any lien, security interest, or assignment intended as security, or in preserving
the liability of any Person liable or obligated on the Guaranteed Obligations.

(m)            
All payments by Borrower and proceeds of Collateral shall be applied to the Obligations as provided by the Note Purchase
Agreement.

7.                 
Default.

(a)               
Upon the occurrence and during the continuation of an Event of Default and at any time following the death of Richard J.
Kurtz, Guarantor agrees to pay to Agent, for the benefit of Purchasers, at Agent’s office located in New York County, New
York or at such other place as Agent may specify to Guarantor in writing, on demand by Agent and without further notice of dishonor
and without notice of any kind to any other Person, the full unpaid amount of the Guaranteed Obligations, in immediately available
funds, or such lesser amount, if any, as may then be due and payable and demanded by Agent from time to time. If acceleration of
the time for payment of any amount payable by Borrower or any other Person under or with respect to any of the Guaranteed Obligations
is stayed or otherwise delayed upon the insolvency, bankruptcy, or reorganization of Borrower or any other Person, all such amounts
otherwise subject to acceleration under the terms of the Guaranteed Obligations shall nonetheless be payable by Guarantor hereunder
promptly on demand by Agent, and Guarantor expressly and unconditionally agrees to make Full Payment of the Guaranteed Obligations.

(b)              
The occurrence of any of the following shall constitute a “Guarantor Default” under this Agreement:

(i)                
Guarantor fails to make Full Payment of the Guaranteed Obligations on the earlier of (A) three (3) Business Days of demand
by Agent and (B) August 31, 2016.

(ii)              
The Guarantor shall become insolvent, or shall suffer or consent to or apply for the appointment of a receiver, trustee
or custodian or any of his property, or shall generally fail to pay his debts as they become due, or shall make a general assignment
for the benefit of creditors; the Guarantor shall file a voluntary petition in bankruptcy, or seeking reorganization, in order
to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the United
States Code, as amended or recodified from time to time (“Bankruptcy Code”), or under any state or federal law
granting relief to debtors, whether now or hereafter in effect; or any involuntary petition or proceeding pursuant to the Bankruptcy
Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors is filed or
commenced against the Guarantor, or the Guarantor shall file an answer admitting the jurisdiction of the court and the material
allegations of any involuntary petition; or the Guarantor shall be adjudicated a bankrupt, or an order for relief shall be entered
against the Guarantor by any court of competent jurisdiction under the Bankruptcy Code or any other applicable state or federal
law relating to bankruptcy, reorganization or other relief for debtors.

(iii)            
Guarantor shall be in default in the payment or performance of any material obligation, or any defined event of default,
under the terms of any contract or instrument (other than any of the Loan Documents) pursuant to which Guarantor has incurred any
material Indebtedness or other material liability to any Person.

8.                 
No Waiver, Remedies.

(a)               
No failure on the part of Agent to exercise, and no delay in exercising, any right or remedy hereunder or under the Pledge
Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any right or remedy hereunder preclude
any other or further exercise thereof or the exercise of any other right or remedy. In no event shall any waiver of the provisions
of this Guaranty Agreement be effective unless the same be in writing and signed by an officer of Agent, and then only in the specific
instance and for the purpose given. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies
provided by any Applicable Law or any of the other Loan Documents, including without limitation the Pledge Agreement.

(b)              
Failure by Agent at any time or times hereafter to require strict performance by Borrower, Guarantor, or any other Person
of any of the requirements contained in any of the Loan Documents now or at any time, from time to time, hereafter executed and
delivered by Borrower, Guarantor, or any such other Person shall not waive, affect, or diminish the right to demand strict performance
thereof, and such right shall not be deemed to have been modified or waived by any course of conduct or knowledge of Agent or any
officer or employee thereof.

(c)               
No waiver of any Event of Default or any other breach, default, or requirement shall operate as a waiver of any other Event
of Default or the same Event of Default on a future occasion, and no action permitted hereunder shall in any way affect or impair
any of the rights of Agent or the obligations of Guarantor under this Guaranty Agreement or under any of the other Loan Documents
(except to the extent, if any, as may be specified in any such waiver). Any determination by a court of competent jurisdiction
of the amount of any principal and/or interest or other amount constituting any of the Guaranteed Obligations shall be conclusive
and binding on Guarantor irrespective of whether Guarantor was a party to the suit or action in which such determination was made.

9.                 
Notice of Sale. In the event that Guarantor is entitled to receive any notice under the UCC, as it exists in the
state governing any such notice, of the sale or other disposition of any Collateral or other property securing all or any part
of the Guaranteed Obligations, it is agreed that at least ten days notice of the time and place of any public sale, or the time
after which any private sale or other disposition may be made of any such Collateral or other property, shall be deemed to be reasonable
notice in conformity with such requirements; provided, that notice given in any other reasonable manner or at any other reasonable
time shall be sufficient.

10.             
Payment by Guarantor. Whenever Guarantor pays any sum which is or may become due under this Guaranty Agreement, Guarantor
shall also deliver written notice thereof to Agent contemporaneously with such payment. Such notice shall be effective for purposes
of this paragraph when given with such payment to Agent in a manner prescribed for notices hereunder. For purposes of this Guaranty
Agreement, in the absence of such notice in compliance with the provisions hereof, any sum received by Agent on account of the
Guaranteed Obligations shall be conclusively deemed paid by Borrower.

11.             
Agent. Agent shall have all of the rights, powers, and benefits as are prescribed by the Loan Documents.

12.             
Cumulative Remedies; No Election. If Guarantor is or becomes liable or obligated for the Guaranteed Obligations,
by endorsement or otherwise, other than under this Guaranty Agreement, such liability or obligation shall not be in any manner
impaired or affected hereby, and the rights and remedies of Agent hereunder shall be cumulative of any and all other rights and
remedies that Agent may ever have against Guarantor. The exercise by Agent of any right or remedy hereunder or under any other
agreement, document, or instrument, or at law or in equity, shall not preclude the concurrent or subsequent exercise of any other
right or remedy. This Guaranty Agreement may be enforced from time to time as often as occasion for enforcement may arise as may
be determined by Agent, and it is agreed and understood that it shall not be necessary for Agent, in order to enforce payment by
Guarantor, first to exercise any rights or remedies against Borrower, the Collateral, or any other Person under the Loan Documents
or any Applicable Law.

13.             
Binding Effect. This Guaranty Agreement, and Guarantor’s performance hereunder, is for the benefit of Agent,
the Purchasers, and their successors and permitted assigns, and in the event of an assignment by Agent, or its successors or permitted
assigns, of the Guaranteed Obligations, or any part thereof, the rights and benefits hereunder, to the extent applicable to the
indebtedness, liabilities, and obligations so assigned, shall be deemed transferred with such indebtedness, liabilities, and obligations
without necessity of further express action. This Guaranty Agreement is binding upon Guarantor, and his successors and assigns,
including, without limitation, the estate of Guarantor and his heirs upon his death.

14.             
Subordination. Guarantor hereby agrees that the Subordinated Indebtedness (as defined below) shall be subordinate
and junior in right of payment to the prior Full Payment of all Guaranteed Obligations as herein provided. After the occurrence
and during the continuance of an Event of Default, the Subordinated Indebtedness shall not be payable, and no payment of principal,
interest, or other amounts on account thereof, and no property or guarantee of any nature to secure or pay the Subordinated Indebtedness
shall be made or given, directly or indirectly, by or on behalf of Borrower or received, accepted, retained, or applied by Guarantor
unless and until Full Payment of the Guaranteed Obligations. If any sums shall be paid to Guarantor by Borrower or any other Person
on account of the Subordinated Indebtedness when such payment is not permitted hereunder, such sums shall be held in trust by Guarantor
for the benefit of Agent and shall forthwith be paid to Agent without affecting the liability of Guarantor under this Guaranty
Agreement and may be applied by Agent against the Guaranteed Obligations in accordance with the Note Purchase Agreement. Upon the
request of Agent, Guarantor shall execute, deliver, and endorse to Agent such documentation as Agent may reasonably request to
perfect, preserve, and enforce its rights hereunder. For purposes of this Guaranty Agreement, the term “Subordinated Indebtedness”
means, with respect to Guarantor, all indebtedness, liabilities, and obligations of Borrower to Guarantor, whether such indebtedness,
liabilities, and obligations now exist or are hereafter incurred or arise, or are direct, indirect, contingent, primary, secondary,
several, joint and several, or otherwise, and irrespective of whether such indebtedness, liabilities, or obligations are evidenced
by a note, contract, open account, or otherwise, and irrespective of the Person or Persons in whose favor such indebtedness, obligations,
or liabilities may, at their inception, have been, or may hereafter be created, or the manner in which they have been or may hereafter
be acquired by Guarantor. Guarantor agrees that any and all Liens (including any judgment liens), upon Borrower’s assets
securing payment of any Subordinated Indebtedness shall be and remain inferior and subordinate to any and all Liens upon Borrower’s
assets securing payment of the Guaranteed Obligations or any part thereof, regardless of whether such Liens in favor of Guarantor
or Agent presently exist or are hereafter created or attached (provided that the foregoing shall not be interpreted or deemed to
allow the existence of any such Liens to the extent otherwise prohibited by the Loan Documents). Without the prior written consent
of Agent, Guarantor shall not (i) file suit against Borrower or exercise or enforce any other creditor’s right he may have
against Borrower or (ii) foreclose, repossess, sequester, or otherwise take steps or institute any action or proceedings (judicial
or otherwise, including without limitation the commencement of, or joinder in, any liquidation, bankruptcy, rearrangement, debtor’s
relief, or insolvency proceeding) to enforce any obligations of Borrower to Guarantor or any Liens held by Guarantor on assets
of Borrower. In the event of any receivership, bankruptcy, reorganization, rearrangement, debtor’s relief, or other insolvency
proceeding involving Borrower as debtor, Agent shall have the right to prove and vote any claim under the Subordinated Indebtedness
and to receive directly from the receiver, trustee, or other court custodian all dividends, distributions, and payments made in
respect of the Subordinated Indebtedness until the Full Payment of the Guaranteed Obligations. Agent may apply any such dividends,
distributions, and payments against the Guaranteed Obligations in accordance with the Note Purchase Agreement or other Loan Documents.
Conflict in Agreements. If the subordination provisions of this Section 14 conflict with the terms of that certain Subordination
Agreement dated as of the date hereof between Guarantor, Agent and Borrower (the “Subordination Agreement”),
the terms of such Subordination Agreement shall govern the subordination terms between Agent and the Guarantor.

15.             
Right of Setoff. Guarantor hereby grants to Agent a right of setoff upon any and all monies, securities, or other
property of Guarantor, and the proceeds therefrom, now or hereafter held or received by or in transit to Agent from or for the
account of Guarantor, whether for safekeeping, custody, pledge, transmission, collection, or otherwise, and also upon any and all
deposits (general or special) and credits of Guarantor, and any and all claims of Guarantor against Agent at any time existing.
The right of setoff granted pursuant to this paragraph shall be cumulative of and in addition to Agent’s common law right
of setoff.

16.             
Further Assurances. Upon the request of Agent, Guarantor will, at any time and from time to time, duly execute and
deliver to Agent any and all such further agreements, documents, and instruments, and supply such additional information, as may
be reasonably necessary to obtain the full benefits of this Guaranty Agreement.

17.             
Savings. If any provision of this Guaranty Agreement is held to be illegal, invalid, or unenforceable under present
or future laws effective during the term hereof, such provision shall be fully severable, this Guaranty Agreement shall be construed
and enforced as if such illegal, invalid, or unenforceable provision had never comprised a part hereof, and the remaining provisions
hereof shall remain in full force and effect and shall not be affected by the illegal, invalid, or unenforceable provision or by
its severance herefrom. Furthermore, in lieu of such illegal, invalid, or unenforceable provision there shall be added automatically
as a part of this Guaranty Agreement a provision as similar in terms to such illegal, invalid, or unenforceable provision as may
be possible and be legal, valid, and enforceable. Notwithstanding anything to the contrary contained herein, no provision herein
or in any other document evidencing the Guaranteed Obligations shall require the payment or permit the collection of interest in
excess of the maximum permitted by any Applicable Law. Guarantor and, by its acceptance of this Guaranty Agreement, the Agent,
hereby confirms that it is the intention of such Person that this Guaranty Agreement and the obligations of Guarantor hereunder
not constitute a fraudulent transfer or conveyance for the purposes of any insolvency proceeding, the Uniform Fraudulent Conveyance
Act, the Uniform Fraudulent Transfer Act or any similar foreign, federal or state law to the extent applicable to this Guaranty
Agreement and the obligations of Guarantor hereunder. To effectuate the foregoing intention, the Agent and Guarantor hereby agree
that the obligations of Guarantor under this Guaranty Agreement at any time shall be limited to the maximum amount as will not
result in such obligations of Guarantor hereunder or this Guaranty Agreement constituting an unenforceable fraudulent transfer
or fraudulent conveyance.

18.             
Modification in Writing. No modification, consent, amendment, or waiver of any provision of this Guaranty Agreement,
and no consent to any departure by Guarantor herefrom, shall be effective unless the same shall be in writing and signed by a duly
authorized officer of Agent and, as to any modification or amendment, Guarantor, and then shall be effective only in the specific
instance and for the specific purpose for which given.

19.             
Expenses. Guarantor agrees to pay on demand by Agent all reasonable out-of-pocket costs and expenses incurred by
Agent in connection with the negotiation, preparation, execution, and performance of the terms and provisions of this Guaranty
Agreement and any and all amendments, modifications, renewals, restatements, and/or supplements hereto from time to time, including,
without limitation, the reasonable out-of-pocket fees and expenses of legal counsel to Agent, in each case, if not paid by Borrower
in accordance with the Note Purchase Agreement and subject to any applicable limitations contained in the Note Purchase Agreement.
If Guarantor should breach or fail to perform any provision of this Guaranty Agreement, Guarantor agrees to pay to Agent all costs
and expenses incurred by Agent in the enforcement of this Guaranty Agreement from time to time, including, without limitation,
the reasonable fees and expenses of all legal counsel to Agent.

20.             
No Oral Agreements. THIS GUARANTY AGREEMENT REPRESENTS THE FINAL AGREEMENT BETWEEN GUARANTOR AND LENDER RELATING
TO THE SUBJECT MATTER OF THIS GUARANTY AGREEMENT AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT
ORAL AGREEMENTS OF SUCH PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS BETWEEN GUARANTOR AND LENDER. THIS GUARANTY AGREEMENT SUPERSEDES
ALL PRIOR (IF ANY) ORAL AGREEMENTS, ARRANGEMENTS OR UNDERSTANDINGS RELATING TO THE SUBJECT MATTER OF THIS GUARANTY AGREEMENT.

21.             
Notices. Unless otherwise specifically provided in this Guaranty Agreement, all notices or other communications required
or permitted to be given under this Guaranty Agreement shall be given, if to Agent, as specified in the Note Purchase Agreement,
or if to Guarantor, to Borrower in the manner specified in the Note Purchase Agreement.

22.             
Survival. All representations, warranties, covenants and agreements of Guarantor in this Guaranty Agreement shall
survive the execution of this Guaranty Agreement.

23.             
Counterparts. This Guaranty Agreement may be executed in any number of counterparts, each of which shall constitute
an original, but all of which when taken together shall constitute one and the same Guaranty Agreement. Delivery of the signature
page of this Guaranty Agreement by telecopy or other electronic means shall be effective as delivery of a manually executed counterpart
hereof and shall be deemed valid as an original.

24.             
GOVERNING LAW. THIS GUARANTY AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT
TO ANY CONFLICT OF LAW PRINCIPLES (BUT GIVING EFFECT TO FEDERAL LAWS RELATING TO NATIONAL BANKS).

25.             
Consent to Forum. GUARANTOR HEREBY CONSENTS TO THE NON-EXCLUSIVE JURISDICTION OF ANY FEDERAL OR STATE COURT SITTING
IN OR WITH JURISDICTION OVER NEW YORK COUNTY, NEW YORK, IN ANY PROCEEDING OR DISPUTE RELATING IN ANY WAY TO THIS GUARANTY AGREEMENT,
AND AGREES THAT ANY SUCH PROCEEDING SHALL BE BROUGHT BY HIM SOLELY IN ANY SUCH COURT. GUARANTOR IRREVOCABLY WAIVES ALL CLAIMS,
OBJECTIONS AND DEFENSES THAT HE MAY HAVE REGARDING SUCH COURT’S PERSONAL OR SUBJECT MATTER JURISDICTION, VENUE OR INCONVENIENT
FORUM. GUARANTOR IRREVOCABLY CONSENTS TO SERVICE OF PROCESS IN THE MANNER PROVIDED FOR NOTICES IN SECTION 28. Nothing herein shall
limit the right of Agent to bring proceedings against Guarantor in any other court, nor limit the right of any party to serve process
in any other manner permitted by Applicable Law. Nothing in this Guaranty Agreement shall be deemed to preclude enforcement by
Agent of any judgment or order obtained in any forum or jurisdiction.

26.             
Waivers by Guarantor. To the fullest extent permitted by Applicable Law, Guarantor waives (a) the right to trial
by jury (which Agent hereby also waives) in any proceeding or dispute of any kind relating in any way to this Guaranty Agreement
or the Guaranteed Obligations; (b) presentment, demand, protest and notice of presentment; (c) notice prior to taking possession
or control of any Collateral for the Guaranteed Obligations; (d) any bond or security that might be required by a court prior to
allowing Agent to exercise any rights or remedies; (e) the benefit of all valuation, appraisement and exemption laws; (f) any claim
against Agent, on any theory of liability, for special, indirect, consequential, exemplary or punitive damages (as opposed to direct
or actual damages) in any way relating to any Obligations, Loan Documents or transactions relating thereto; and (g) notice
of acceptance hereof. Guarantor acknowledges that the foregoing waivers are a material inducement to Agent entering into the Note
Purchase Agreement and that Agent is relying upon the foregoing in its dealings with Borrower. Guarantor has reviewed the foregoing
waivers with his legal counsel and has knowingly and voluntarily waived his jury trial and other rights following consultation
with legal counsel. In the event of litigation, this Guaranty Agreement may be filed as a written consent to a trial by the court.

27.             
Irrevocable Nature of Guaranty. This Guaranty Agreement shall be irrevocable. Guarantor acknowledges that any purported
or attempted revocation shall constitute an Event of Default.

28.             
Notice. Except as otherwise provided herein, any notices desired, required or permitted to be given hereunder shall
be delivered by email to each email address listed below (as applicable) and (i) personally, (ii) mailed, certified or registered
mail, return receipt requested, postage prepaid, (iii) by commercial overnight courier service, charges prepaid, or (iv) by
confirmed facsimile (provided that a paper version is also sent by any of (i), (ii), or (iii) above) to the following addresses
and numbers, or such other addresses and numbers as shall be given by notice delivered hereunder:

If to the Agent:

Enhanced Credit Supported Loan Fund LP

601 Lexington Avenue, 55th Floor

New York, NY 10022

Attn: Doug Cruikshank

Email: dcruikshank@enhancedcapital.com

 

and

David Huston

Email: dhuston@enhancedcapital.com

 

with copies of notices to any of the
foregoing (which shall not constitute notice) to:

 

Perkins Coie LLP

131 South Dearborn Street

Suite 1700

Chicago, IL 60603

Attn: Teri A. Lindquist

Email: tlindquist@perkinscoie.com

Facsimile: (312) 324-9547

 

If to the Guarantor:

 

Richard J. Kurtz

270 Sylvan Avenue

Englewood Cliffs, NJ 07632

Email: RKurtz@kamsoncorp.com

 

with copies of notices to any of the foregoing (which shall not
constitute notice) to:

 

McGuireWoods LLP

1345 Avenue of the Americas, 7th Floor

New York, NY 10105

Attn: Stephen E. Older and Leon Yel

Email: solder@mcguirewoods.com

Facsimile: (212) 715-2307

 

or to such other address or telecopy
number as each party may designate for itself by like notice give in accordance with this Section 28.

29.             
Headings. The paragraph headings in this Guaranty Agreement are for convenience of identification only and do not
limit any of the provisions hereof.

30.             
Patriot Act Notice. Guarantor acknowledges notice by Agent that pursuant to the requirements of the Patriot Act,
Agent is required to obtain, verify and record information that identifies Guarantor, including his legal name, address, social
security number, date of birth and other information that will allow Agent to identify him in accordance with the Patriot Act.

31.             
Pledge Amendment. The parties hereto hereby amend the Pledge Agreement by replacing the reference to “(the
“Guaranty”)” in the second Whereas clause with “(as amended and restated on December 15, 2015, and
as further amended or amended and restated from time to time, the “Guaranty”)”.

     

     

    

IN WITNESS WHEREOF,
the undersigned has executed this Guaranty Agreement as of the effective date specified in the introductory paragraph hereinabove.

GUARANTOR

/s/ Richard J. Kurtz

Richard J. Kurtz

 

Full Legal Name:

Richard J. Kurtz

Address of Legal Residence:

_________________________________________

_________________________________________

 

 

Acknowledged and Agreed:

Enhanced Credit Supported Loan Fund, LP

By: Enhanced CSLF GP, LLC, its general partner

 

/s/ Douglas Cruikshank

Douglas Cruikshank, Manager

     

     

    

EXHIBIT A

Form of Guarantor Compliance Certificate

     

     

    

To:Enhanced Credit Supported Loan Fund, LP, as Agent

601 Lexington Ave, 55th Floor

New York, NY 10022

Attn: Doug Cruikshank

 

Re:Compliance Certificate dated []

Ladies and Gentlemen:

Reference is made to that certain Amended and Restated Guaranty
Agreement ( as amended, restated, supplemented or otherwise modified from time to time, the “Guaranty”) dated as of
December 15, 2015, by and among Enhanced Credit Supported Loan Fund, LP, as Agent (“Agent”) and Richard J. Kurtz (the
“Guarantor”). Capitalized terms used in this Compliance Certificate have the meanings set forth in the Guaranty unless
specifically defined herein.

Pursuant to Section 4(a)(iv) of the Guaranty, the undersigned
hereby certifies that:

1.Guarantor does not have knowledge of the existence
as of the date hereof, of any event or condition that constitutes a Guarantor Default or event which, with the giving of notice
or passage of time or both, would constitute a Guarantor Default, or if any such Guarantor Default exists, attached hereto is a
description of the nature of such Guarantor Default, the period of existence thereof, and what action Guarantor propose to take
with respect thereto.

2.Guarantor is in compliance with the terms, covenants,
provisions and conditions of the Guaranty.

3.The representations and warranties of the Guarantor
set forth in the Guaranty are true and correct in all material respects on and as of the date hereof (except to the extent they
relate to a specified date).

4.Guarantor is in compliance with the applicable covenants
contained in Section 4 of the Guaranty as demonstrated on Schedule 1 hereof.

5.Attached hereto as Schedule 2 is a balance sheet of
Guarantor as of the end of the prior calendar quarter, together with a summary of any material transactions executed during the
prior calendar quarter or pending as of the date hereof (the “Balance Sheet”). The Balance Sheet is true and complete
and includes all material information necessary to make such information on the date as of which such information is dated, taken
as a whole, not misleading. There have been no adverse changes to the financial position of the Guarantor from such date through
the date hereof, after giving effect to any recent or pending transactions.

[6.Attached to Schedule 3 hereof are the results of the
lien searches listed on Schedule 3 for a date within 30 days of the date hereof.][To be provided every other quarter.]

 

IN WITNESS WHEREOF, this Compliance Certificate is executed
by the undersigned this [_____] day of [_______________], [________].

 

 

 

Name:Richard J. Kurtz

 

 

Accountant Certification

The
undersigned hereby states
that:

1. 
Mr. Kurtz has
provided me with
a list of
his assets and
their respective valuations. While I have neither independently 
confirmed these valuations  nor have I independently
 confirmed that the list
of assets he has
provided is complete, to the best
of my knowledge, based
on the information and
representations  provided to me by
Mr. Kurtz, the list of
Mr. Kurtz's assets does not appear to
be incomplete or
misleading in any material respect.

 

2.
 Mr. Kurtz has provided me with a list of his indebtedness
 (as defined  in the Note Purchase
Agreement). I am not
aware of any other indebtedness
of Mr. Kurtz.  Based
on the information and representations provided to me by Mr. Kurtz, the list does not appear to be
misleading or incomplete in any material respect.

 

3. 
Subject to the above,
the calculations set
forth in Schedule 1 appears to
be reasonable, based on the information and representations provided
to me by Mr. Kurtz.

 

4. 
The  financial information used  in
my  preparation  of the most 
recent federal tax return for Richard J.
Kurtz appears to be consistent with the Financial Information 
(if any) delivered for the applicable
period covered by such tax return.

 

 

 

Name:

Date: ________________________

 

 

 

 

 

     

     

    

 

 

SCHEDULE 1

 

Financial Covenant

 

Net Worth.

a. Guarantor’s net worth as of the last business day
in the prior calendar quarter: $[___________]

 

Total Asset Value

b. The Guarantor’s Total Asset Value as of the last
business day of the prior calendar quarter: $[_______]

c. The Guarantor’s Indebtedness as of the last business
day of the prior calendar quarter: $[_______]

d. [Eight][Nine] times row (c): $[__________]

 

Row (b) is greater than row (d): Y / N

 

Amount of Subordinated Debt provided to Borrower by Guarantor
after August 31, 2014: $_______

Greater than $1,000,000: Y / N”

 

 

     

     

    

SCHEDULE 2

BALANCE SHEET AND SUMMARY OF RECENT AND
PENDING TRANSACTIONS

 

See attached.

     

     

    

SCHEDULE 3

LIEN SEARCHES

 

	Search Term	Type of Search	Jurisdiction
	“Richard Kurtz”	UCC	State of residency, presumed to be New Jersey until Agent is notified otherwise
	“Richard Kurtz”	Pending Suits, Judgment Liens, and Tax Liens	County of residency, presumed to be Bergen County, NJ, until Agent is notified otherwise
	“Richard Kurtz”	Pending Suits, Judgment Liens, and Tax Liens	Trenton, NJ
	“Richard Kurtz”	Pending Suits and Judgment Liens	U.S. District Court jurisdiction in which he resides, presumed to be U.S. District Court, NJ District until Agent is notified otherwise
	“Forest Hill Terrace Associates”	UCC, Pending Suits, and Judgment Liens	Essex County, NJ
	[Property Description]	Mortgage	Essex County, NJ

 

Lien search results are attached hereto.

     

     

    

EXHIBIT B

LAWRENCE T. LOWEN,
P.C.

ATTORNEYS
AT LAW

A PROFESSIONAL CORPORATION

2 EXECUTIVE DRIVE

FORT LEE, NEW JER5EY 07024

	 PLEASE REPLY TO FORT LEE	 FACSIMILE: 212-202-3687

 

201-592-1700

	 340 WEST 57TH STREET	 E-MAIL: ltlowen@lowen.net

 

NINTH FLOOR

NEW YORK, N.Y. 10016

212- 662-0606

 

 

December , 2013

 

Enhanced Credit Supported Loan Fund

 

 

Re: Guaranty Agreement dated
December , 2013 made by Richard J. Kurtz to Enhanced Credit Supported Loan Fund (“Enhanced”)

 

Ladies and Gentlemen:

We have acted as counsel to Richard J.
Kurtz (“Personal Guarantor”) in connection with his guaranty of a certain loan in the sum of $7,000,000 (the “Loan”)
made to LaPolla Industries, Inc. (“Borrower”) by Enhanced Credit Supported Loan Fund (the “Agent”).

The Personal Guarantor is also referred
to as the “Guarantor”.

In this capacity, we have examined and
are familiar with the Guaranty Agreement executed by the Personal Guarantor in favor of the Agent, and such other documents as
we have deemed necessary for the purposes of this opinion.

Based upon the foregoing, and in conformity
with paragraph k(v) of the Guaranty Agreement, we are of the opinion that, during the scope of our legal representation of Mr.
Kurtz and any entities affiliated with him as of and from December , 2013 through the date of this letter, and to the best of our
knowledge, no action has been taken or omitted by Mr. Kurtz which would result in a default by him of the Guaranty Agreement.

This Opinion is limited to legal services
rendered directly to Mr. Kurtz and affiliated entities by the undersigned, and does not encompass legal services which may have
been rendered to Mr. Kurtz or affiliated entities by separate counsel during the period of time covered by this Opinion.

We are licensed to practice law in the
State of New Jersey. Accordingly, the foregoing opinion applies only with respect to the laws of the State of New Jersey or of
the United States of America and we express no opinion with respect to the laws of any other jurisdiction.

Very truly yours,

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