Document:

Exhibit 10.3

 

 

*DOC11503000002302960300000009990000000*

 

 

 

BUSINESS
LOAN AGREEMENT (ASSET BASED)

 

	Principal

    $6,000,000.00
	Loan
    Date

07-30-2021	Maturity

08-30-2024	Bank/App
    01	Loan
    No

00230296030000000999	Account
    0023029603	Officer

K9GP4
	References
    in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or
    item.

    Any
    item above containing “***” has been omitted due to text length limitations.

 

	Borrower:	OCEAN
    BIO-CHEM, INC.	 	Lender:	Regions
    Bank
	 	4041 SW 47 AVE

                                                              
FT
    LAUDERDALE, FL  333144023	 	 	MONTGOMERY:
    MIDDLE MARKET BANKING

    201
    MONROE STREET

	 		 	 	ALMG60077B

MONTGOMERY, AL 36104

 

		 	 

 

THIS
BUSINESS LOAN AGREEMENT (ASSET BASED) dated July 30, 2021, is made and executed between OCEAN BIO-CHEM, INC. (“Borrower”)
and Regions Bank (“Lender”) on the following terms and conditions. Borrower has received prior commercial loans from Lender
or has applied to Lender for a commercial loan or loans or other financial accommodations, including those which may be described on
any exhibit or schedule attached to this Agreement. Borrower understands and agrees that: (A) in granting, renewing, or extending any
Loan, Lender is relying upon Borrower’s representations, warranties, and agreements as set forth in this Agreement; (B) the granting,
renewing, or extending of any Loan by Lender at all times shall be subject to Lender’s sole judgment and discretion; and (C) all
such Loans shall be and remain subject to the terms and conditions of this Agreement.

 

TERM.
This Agreement shall be effective as of July 30, 2021, and shall continue in full force and effect until such time as all of Borrower’s
Loans in favor of Lender have been paid in full, including principal, interest, costs, expenses, attorneys’ fees, and other fees
and charges, or until August 30, 2024.

 

LINE
OF CREDIT. Lender agrees to make Advances to Borrower from time to time from the date of this Agreement to the Expiration Date, provided
the aggregate amount of such Advances outstanding at any time does not exceed the Borrowing Base. Within the foregoing limits, Borrower
may borrow, partially or wholly prepay, and reborrow under this Agreement as follows:

 

Conditions
Precedent to Each Advance. Lender’s obligation to make any Advance to or for the account of Borrower under this Agreement is
subject to the following conditions precedent, with all documents, instruments, opinions, reports, and other items required under this
Agreement to be in form and substance satisfactory to Lender:

 

(1)
Lender shall have received evidence that this Agreement and all Related Documents have been duly authorized, executed, and delivered
by Borrower to Lender.

 

(2) Lender shall have received such opinions of counsel, supplemental opinions, and documents as Lender may request.

 

(3)
The security interests in the Collateral shall have been duly authorized, created, and perfected with first lien priority and shall be
in full force and effect.

 

(4)
All guaranties required by Lender for the credit facility(ies) shall have been executed by each Guarantor, delivered to Lender, and be
in full force and effect.

 

(5)
Lender, at its option and for its sole benefit, shall have conducted an audit of Borrower’s books, records, and operations, and
Lender shall be satisfied as to their condition.

 

(6)
Borrower shall have paid to Lender all fees, costs, and expenses specified in this Agreement and the Related Documents as are then due
and payable.

 

(7)
There shall not exist at the time of any Advance a condition which would constitute an Event of Default under this Agreement, and Borrower
shall have delivered to Lender the compliance certificate called for in the paragraph below titled “Compliance Certificate.”

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 2

	 	 	 

 

 

Making
Loan Advances. Advances under this credit facility, as well as directions for payment from Borrower’s accounts, may be requested
orally or in writing by authorized persons. Lender may, but need not, require that all oral requests be confirmed in writing. Each Advance
shall be conclusively deemed to have been made at the request of and for the benefit of Borrower (1) when credited to any deposit account
of Borrower maintained with Lender or (2) when advanced in accordance with the instructions of an authorized person. Lender, at its option,
may set a cutoff time, after which all requests for Advances will be treated as having been requested on the next succeeding Business
Day.

 

Mandatory
Loan Repayments. If at any time the aggregate principal amount of the outstanding Advances shall exceed the applicable Borrowing
Base, Borrower, immediately upon written or oral notice from Lender, shall pay to Lender an amount equal to the difference between the
outstanding principal balance of the Advances and the Borrowing Base. On the Expiration Date, Borrower shall pay to Lender in full the
aggregate unpaid principal amount of all Advances then outstanding and all accrued unpaid interest, together with all other applicable
fees, costs and charges, if any, not yet paid.

 

Loan
Account. Lender shall maintain on its books a record of account in which Lender shall make entries for each Advance and such other
debits and credits as shall be appropriate in connection with the credit facility. Lender shall provide Borrower with periodic statements
of Borrower’s account, which statements shall be considered to be correct and conclusively binding on Borrower unless Borrower
notifies Lender to the contrary within thirty (30) days after Borrower’s receipt of any such statement which Borrower deems to
be incorrect.

 

COLLATERAL.
To secure payment of the Primary Credit Facility and performance of all other Loans, obligations and duties owed by Borrower to Lender,
Borrower (and others, if required) shall grant to Lender Security Interests in such property and assets as Lender may require. Lender’s
Security Interests in the Collateral shall be continuing liens and shall include the proceeds and products of the Collateral, including
without limitation the proceeds of any insurance. With respect to the Collateral, Borrower agrees and represents and warrants to Lender:

 

Perfection
of Security Interests. Borrower agrees to execute all documents perfecting Lender’s Security Interest and to take whatever
actions are requested by Lender to perfect and continue Lender’s Security Interests in the Collateral. Upon request of Lender,
Borrower will deliver to Lender any and all of the documents evidencing or constituting the Collateral, and Borrower will note Lender’s
interest upon any and all chattel paper and instruments if not delivered to Lender for possession by Lender. Contemporaneous with the
execution of this Agreement, Borrower will execute one or more UCC financing statements and any similar statements as may be required
by applicable law, and Lender will file such financing statements and all such similar statements in the appropriate location or locations.
Borrower hereby appoints Lender as its irrevocable attorney-in-fact for the purpose of executing any documents necessary to perfect or
to continue any Security Interest. Lender may at any time, and without further authorization from Borrower, file a carbon, photograph,
facsimile, or other reproduction of any financing statement for use as a financing statement. Borrower will reimburse Lender for all
expenses for the perfection, termination, and the continuation of the perfection of Lender’s security interest in the Collateral.
Borrower promptly will notify Lender before any change in Borrower’s name including any change to the assumed business names of
Borrower. Borrower also promptly will notify Lender before any change in Borrower’s Social Security Number or Employer Identification
Number. Borrower further agrees to notify Lender in writing prior to any change in address or location of Borrower’s principal
governance office or should Borrower merge or consolidate with any other entity.

 

Collateral
Records. Borrower does now, and at all times hereafter shall, keep correct and accurate records of the Collateral, all of which records
shall be available to Lender or Lender’s representative upon demand for inspection and copying at any reasonable time. The above
is an accurate and complete list of all locations at which Borrower keeps or maintains business records concerning Borrower’s collateral.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 3

	 	 	 

 

 

Collateral
Schedules. Concurrently with the execution and delivery of this Agreement, Borrower shall execute and deliver to Lender schedules
of in form and substance satisfactory to the Lender. Thereafter supplemental schedules shall be delivered according to the following
schedule:

 

REPRESENTATIONS
AND WARRANTIES. Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date of each disbursement
of loan proceeds, as of the date of any renewal, extension or modification of any Loan, and at all times any Indebtedness exists:

 

Organization.
Borrower is a corporation for profit which is, and at all times shall be, duly organized, validly existing, and in good standing
under and by virtue of the laws of the State of Florida. Borrower is duly authorized to transact business in all other states in which
Borrower is doing business, having obtained all necessary filings, governmental licenses and approvals for each state in which Borrower
is doing business. Specifically, Borrower is, and at all times shall be, duly qualified as a foreign corporation in all states in which
the failure to so qualify would have a material adverse effect on its business or financial condition. Borrower has the full power and
authority to own its properties and to transact the business in which it is presently engaged or presently proposes to engage. Borrower
maintains an office at 4041 SW 47 AVE, FT LAUDERDALE, FL 333144023. Unless Borrower has designated otherwise in writing, the principal
office is the office at which Borrower keeps its books and records including its records concerning the Collateral. Borrower will notify
Lender prior to any change in the location of Borrower’s state of organization or any change in Borrower’s name. Borrower
shall do all things necessary to preserve and to keep in full force and effect its existence, rights and privileges, and shall comply
with all regulations, rules, ordinances, statutes, orders and decrees of any governmental or quasi-governmental authority or court applicable
to Borrower and Borrower’s business activities.

 

Assumed
Business Names. Borrower has filed or recorded all documents or filings required by law relating to all assumed business names used
by Borrower. Excluding the name of Borrower, the following is a complete list of all assumed business names under which Borrower does
business: None.

 

Authorization.
Borrower’s execution, delivery, and performance of this Agreement and all the Related Documents have been duly authorized by
all necessary action by Borrower and do not conflict with, result in a violation of, or constitute a default under (1) any provision
of (a) Borrower’s articles of incorporation or organization, or bylaws, or (b) any agreement or other instrument binding upon Borrower
or (2) any law, governmental regulation, court decree, or order applicable to Borrower or to Borrower’s properties.

 

Financial
Information. Each of Borrower’s financial statements supplied to Lender truly and completely disclosed Borrower’s financial
condition as of the date of the statement, and there has been no material adverse change in Borrower’s financial condition subsequent
to the date of the most recent financial statement supplied to Lender. Borrower has no material contingent obligations except as disclosed
in such financial statements.

 

Legal
Effect. This Agreement constitutes, and any instrument or agreement Borrower is required to give under this Agreement when delivered
will constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in accordance with their respective terms.

 

Properties.
Except as contemplated by this Agreement or as previously disclosed in Borrower’s financial statements or in writing to Lender
and as accepted by Lender, and except for property tax liens for taxes not presently due and payable, Borrower owns and has good title
to all of Borrower’s properties free and clear of all Security Interests, and has not executed any security documents or financing
statements relating to such properties. All of Borrower’s properties are titled in Borrower’s legal name, and Borrower has
not used or filed a financing statement under any other name for at least the last five (5) years.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 4

	 	 	 

 

 

Hazardous
Substances. Except as disclosed to and acknowledged by Lender in writing, Borrower represents and warrants that: (1) During the period
of Borrower’s ownership of the Collateral, there has been no use, generation, manufacture, storage, treatment, disposal, release
or threatened release of any Hazardous Substance by any person on, under, about or from any of the Collateral. (2) Borrower has no knowledge
of, or reason to believe that there has been (a) any breach or violation of any Environmental Laws; (b) any use, generation, manufacture,
storage, treatment, disposal, release or threatened release of any Hazardous Substance on, under, about or from the Collateral by any
prior owners or occupants of any of the Collateral; or (c) any actual or threatened litigation or claims of any kind by any person relating
to such matters. (3) Neither Borrower nor any tenant, contractor, agent or other authorized user of any of the Collateral shall use,
generate, manufacture, store, treat, dispose of or release any Hazardous Substance on, under, about or from any of the Collateral; and
any such activity shall be conducted in compliance with all applicable federal, state, and local laws, regulations, and ordinances, including
without limitation all Environmental Laws. Borrower authorizes Lender and its agents to enter upon the Collateral to make such inspections
and tests as Lender may deem appropriate to determine compliance of the Collateral with this section of the Agreement. Any inspections
or tests made by Lender shall be at Borrower’s expense and for Lender’s purposes only and shall not be construed to create
any responsibility or liability on the part of Lender to Borrower or to any other person. The representations and warranties contained
herein are based on Borrower’s due diligence in investigating the Collateral for hazardous waste and Hazardous Substances. Borrower
hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Borrower becomes liable for
cleanup or other costs under any such laws, and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims,
losses, liabilities, damages, penalties, and expenses which Lender may directly or indirectly sustain or suffer resulting from a breach
of this section of the Agreement or as a consequence of any use, generation, manufacture, storage, disposal, release or threatened release
of a hazardous waste or substance on the Collateral. The provisions of this section of the Agreement, including the obligation to indemnify
and defend, shall survive the payment of the Indebtedness and the termination, expiration or satisfaction of this Agreement and shall
not be affected by Lender’s acquisition of any interest in any of the Collateral, whether by foreclosure or otherwise.

 

Litigation
and Claims. No litigation, claim, investigation, administrative proceeding or similar action (including those for unpaid taxes) against
Borrower is pending or threatened, and no other event has occurred which may materially adversely affect Borrower’s financial condition
or properties, other than litigation, claims, or other events, if any, that have been disclosed to and acknowledged by Lender in writing.

 

Taxes.
To the best of Borrower’s knowledge, all of Borrower’s tax returns and reports that are or were required to be filed,
have been filed, and all taxes, assessments and other governmental charges have been paid in full, except those presently being or to
be contested by Borrower in good faith in the ordinary course of business and for which adequate reserves have been provided.

 

Lien
Priority. Unless otherwise previously disclosed to Lender in writing, Borrower has not entered into or granted any Security Agreements,
or permitted the filing or attachment of any Security Interests on or affecting any of the Collateral directly or indirectly securing
repayment of Borrower’s Loan and Note, that would be prior or that may in any way be superior to Lender’s Security Interests
and rights in and to such Collateral.

 

Binding
Effect. This Agreement, the Note, all Security Agreements (if any), and all Related Documents are binding upon the signers thereof,
as well as upon their successors, representatives and assigns, and are legally enforceable in accordance with their respective terms.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 5

	 	 	 

 

 

AFFIRMATIVE
COVENANTS. Borrower covenants and agrees with Lender that, so long as this Agreement remains in effect, Borrower will:

 

Notices
of Claims and Litigation. Promptly inform Lender in writing of (1) all material adverse changes in Borrower’s financial condition,
and (2) all existing and all threatened litigation, claims, investigations, administrative proceedings or similar actions affecting Borrower
or any Guarantor which could materially affect the financial condition of Borrower or the financial condition of any Guarantor.

 

Financial
Records. Maintain its books and records in accordance with GAAP, applied on a consistent basis, and permit Lender to examine and
audit Borrower’s books and records at all reasonable times.

 

Financial
Statements. Furnish Lender with such financial statements and other related information at such frequencies and in such detail as
Lender may reasonably request.

 

Additional
Information. Furnish such additional information and statements, as Lender may request from time to time.

 

Additional
Requirements.

 

Other
(Covenant)

 

Interim
Financial Statement - Company Prepared As soon as available, but in no event later than days after the end of each fiscal of Borrower,
Borrower’s balance sheet and income statement for such fiscal year, certified by the of the company.

 

Other
(Covenant)

 

Accounts
Receivable Aging Report Barrower to provide monthly Accounts Receivable Aging Report to support barrowing base certificate within
thirty (30) days of month-end.

 

Inventory
Report Borrower to provide monthly Inventory Report to support borrowing base certificate within thirty (30) days of month-end.

 

Borrowing
Base Compliance Certificates. Unless waived in writing by Lender, provide Lender at least annually, with a certificate executed by
Borrower’s chief financial officer, or other officer or person acceptable to Lender, certifying that the representations and warranties
set forth in this agreement are true and correct as of the date of the certificate and further certifying that, as of the date of the
certificate, no Event of Default exists under this agreement.

 

Annual
Financial Statement - Corporate Entity - CPA Audited As soon as available, but in no event later than 120 days after the end of each
fiscal year of Borrower, Borrower’s balance sheet and income statement for such fiscal year, audited by an independent certified
public accountant satisfactory to Lender.

 

Insurance. Maintain fire and
other risk insurance, public liability insurance, and such other insurance as Lender may require with respect to Borrower’s properties
and operations, in form, amounts, coverages and with insurance companies acceptable to Lender. Borrower, upon request of Lender, will
deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations
that coverages will not be cancelled or diminished without at least thirty (30) days prior written notice to Lender. Each insurance policy
also shall include an endorsement providing that coverage in favor of Lender will not be impaired in any way by any act, omission or
default of Borrower or any other person. In connection with all policies covering assets in which Lender holds or is offered a security
interest for the Loans, Borrower will provide Lender with such lender’s loss payable or other endorsements as Lender may require.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 6

	 	 	 

 

 

Insurance Reports. Furnish
to Lender, upon request of Lender, reports on each existing insurance policy showing such information as Lender may reasonably request,
including without limitation the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy; (4) the
properties insured; (5) the then current property values on the basis of which insurance has been obtained, and the manner of determining
those values; and (6) the expiration date of the policy. In addition, upon request of Lender (however not more often than annually), Borrower
will have an independent appraiser satisfactory to Lender determine, as applicable, the actual cash value or replacement cost of any Collateral.
The cost of such appraisal shall be paid by Borrower.

 

Other Agreements. Comply
with all terms and conditions of all other agreements, whether now or hereafter existing, between Borrower and any other party and notify
Lender immediately in writing of any default in connection with any other such agreements.

 

Loan Proceeds. Use all
Loan proceeds solely for Borrower’s business operations, unless specifically consented to the contrary by Lender in writing.

 

Taxes, Charges and Liens.
Pay and discharge when due all of its indebtedness and obligations, including without limitation all assessments, taxes, governmental
charges, levies and liens, of every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the date on
which penalties would attach, and all lawful claims that, if unpaid, might become a lien or charge upon any of Borrower’s properties,
income, or profits. Provided however, Borrower will not be required to pay and discharge any such assessment, tax, charge, levy, lien
or claim so long as (1) the legality of the same shall be contested in good faith by appropriate proceedings, and (2) Borrower shall have
established on Borrower’s books adequate reserves with respect to such contested assessment, tax, charge, levy, lien, or claim in accordance
with GAAP.

 

Performance. Perform
and comply, in a timely manner, with all terms, conditions, and provisions set forth in this Agreement, in the Related Documents, and
in all other instruments and agreements between Borrower and Lender. Borrower shall notify Lender immediately in writing of any default
in connection with any agreement.

 

Operations. Maintain
executive and management personnel with substantially the same qualifications and experience as the present executive and management personnel;
provide written notice to Lender of any change in executive and management personnel; conduct its business affairs in a reasonable and
prudent manner.

 

Environmental Studies. Promptly
conduct and complete, at Borrower’s expense, all such investigations, studies, samplings and testings as may be requested by Lender or
any governmental authority relative to any substance, or any waste or by-product of any substance defined as toxic or a hazardous substance
under applicable federal, state, or local law, rule, regulation, order or directive, at or affecting any property or any facility owned,
leased or used by Borrower.

 

Compliance with Governmental
Requirements. Comply with all laws, ordinances, and regulations, now or hereafter in effect, of all governmental authorities applicable
to the conduct of Borrower’s properties, businesses and operations, and to the use or occupancy of the Collateral, including without limitation,
the Americans With Disabilities Act. Borrower may contest in good faith any such law, ordinance, or regulation and withhold compliance
during any proceeding, including appropriate appeals, so long as Borrower has notified Lender in writing prior to doing so and so long
as, in Lender’s sole opinion, Lender’s interests in the Collateral are not jeopardized. Lender may require Borrower to post adequate security
or a surety bond, reasonably satisfactory to Lender, to protect Lender’s interest.

 

Inspection. Permit employees
or agents of Lender at any reasonable time to inspect any and all Collateral for the Loan or Loans and Borrower’s other properties and
to examine or audit Borrower’s books, accounts, and records and to make copies and memoranda of Borrower’s books, accounts, and records.
If Borrower now or at any time hereafter maintains any records (including without limitation computer generated records and computer software
programs for the generation of such records) in the possession of a third party, Borrower, upon request of Lender, shall notify such party
to permit Lender free access to such records at all reasonable times and to provide Lender with copies of any records it may request,
all at Borrower’s expense.

 

Environmental Compliance and
Reports. Borrower shall comply in all respects with any and all Environmental Laws; not cause or permit to exist, as a result of an
intentional or unintentional action or omission on Borrower’s part or on the part of any third party, on property owned and/or occupied
by Borrower, any environmental activity where damage may result to the environment, unless such environmental activity is pursuant to
and in compliance with the conditions of a permit issued by the appropriate federal, state or local governmental authorities; shall furnish
to Lender promptly and in any event within thirty (30) days after receipt thereof a copy of any notice, summons, lien, citation, directive,
letter or other communication from any governmental agency or instrumentality concerning any intentional or unintentional action or omission
on Borrower’s part in connection with any environmental activity whether or not there is damage to the environment and/or other natural
resources.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 7

	 	 	 

 

 

Additional Assurances. Make,
execute and deliver to Lender such promissory notes, mortgages, deeds of trust, security agreements, assignments, financing statements,
instruments, documents and other agreements as Lender or its attorneys may reasonably request to evidence and secure the Loans and to
perfect all Security Interests.

 

Deposit and Treasury Management.
Maintain all deposit account(s) and Treasury Management Services it has in place with Lender from the Loan Date through the termination
of this Agreement. If Borrower seeks additional deposit accounts or Treasury Management Services after the Loan Date, Borrower agrees
to allow Lender the right of first refusal to provide such services. As used herein, “Treasury Management Services” means
treasury or cash management services or products for businesses, including but not limited to, deposit accounts and liquidity services,
returns services, zero balance accounts, information reporting and digital transaction origination, funds transfers, foreign exchange,
imaging services, automated clearinghouse, commercial credit card services, purchasing cards, cardless e-payable services, wire transfer,
controlled disbursement, lockbox, payment and data management services (e.g. integrated payables and receivables), cash services, remote
deposit capture, fraud prevention services, account reconciliation and reporting and trade finance services. Without in any way limiting
the scope or applicability of any other provision in this Agreement, Borrower understands, acknowledges, and agrees that Lender has the
sole and absolute discretion to determine (1) whether or not a breach of this provision will be deemed to be a default, and (2) the timing
of declaring such a breach to be a default. Borrower agrees and understands that no action, inaction, or delay on the part of Lender in
declaring a breach of this provision to be a default or in exercising any right related to this provision shall operate as a waiver of
(1) Borrower’s obligations under this provision, (2) Lender’s right to declare a breach of this provision to be a default,
(3) the nonwaiver portions of this provision, (4) any other nonwaiver provision contained in this Agreement, or (5) Lender’s right
to demand strict compliance with the terms of this Agreement or enforce the terms of any other agreement between Borrower and Lender.

 

LENDER’S EXPENDITURES. If
any action or proceeding is commenced that would materially affect Lender’s interest in the Collateral or if Borrower fails to comply
with any provision of this Agreement or any Related Documents, including but not limited to Borrower’s failure to discharge or pay when
due any amounts Borrower is required to discharge or pay under this Agreement or any Related Documents, Lender on Borrower’s behalf may
(but shall not be obligated to) take any action that Lender deems appropriate, including but not limited to discharging or paying all
taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on any Collateral and paying all costs
for insuring, maintaining and preserving any Collateral. All such expenditures incurred or paid by Lender for such purposes will then
bear interest at the rate charged under the Note, or the maximum rate permitted by law, whichever is less, from the date incurred or
paid by Lender to the date of repayment by Borrower. All such expenses will become a part of the Indebtedness and, at Lender’s option,
will (A) be payable on demand; (B) be added to the balance of the Note and be apportioned among and be payable with any installment payments
to become due during either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated
as a balloon payment which will be due and payable at the Note’s maturity.

 

CESSATION OF ADVANCES. If
Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under any other agreement, Lender shall have
no obligation to make Loan Advances or to disburse Loan proceeds if: (A) Borrower or any Guarantor is in default under the terms of this
Agreement or any of the Related Documents or any other agreement that Borrower or any Guarantor has with Lender; (B) Borrower or any Guarantor
dies, becomes incompetent or becomes insolvent, files a petition in bankruptcy or similar proceedings, or is adjudged a bankrupt; (C)
there occurs a material adverse change in Borrower’s financial condition, in the financial condition of any Guarantor, or in the value
of any Collateral securing any Loan; or (D) any Guarantor seeks, claims or otherwise attempts to limit, modify or revoke such Guarantor’s
guaranty of the Loan or any other loan with Lender; or (E) Lender in good faith deems itself insecure, even though no Event of Default
shall have occurred.

 

RIGHT OF SETOFF. To
the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower’s accounts with Lender (whether checking,
savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all accounts Borrower may
open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be
prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the
Indebtedness against any and all such accounts, and, at Lender’s option, to administratively freeze all such accounts to allow
Lender to protect Lender’s charge and setoff rights provided in this paragraph.

 

DEFAULT. Each of the following
shall constitute an Event of Default under this Agreement:

 

Payment Default. Borrower fails
to make any payment when due under the Loan.

 

Other Defaults. Borrower
fails to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related
Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender
and Borrower.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 8

	 	 	 

 

 

Default in Favor of Third
Parties. Borrower or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or
any other agreement, in favor of any other creditor or person that may materially affect any of Borrower’s or any Grantor’s property or
Borrower’s or any Grantor’s ability to repay the Loans or perform their respective obligations under this Agreement or any of the Related
Documents.

 

False Statements. Any
warranty, representation or statement made or furnished to Lender by Borrower or on Borrower’s behalf under this Agreement or the Related
Documents is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at
any time thereafter.

 

Insolvency. The dissolution
or termination of Borrower’s existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of
Borrower’s property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding
under any bankruptcy or insolvency laws by or against Borrower.

 

Defective Collateralization.
This Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document
to create a valid and perfected security interest or lien) at any time and for any reason.

 

Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method,
by any creditor of Borrower or by any governmental agency against any collateral securing the Loan. This includes a garnishment of any
of Borrower’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith
dispute by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and
if Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for
the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond
for the dispute.

 

Events Affecting Guarantor.
Any of the preceding events occurs with respect to any Guarantor of any of the Indebtedness or any Guarantor dies or becomes incompetent,
or revokes or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

 

Change in Ownership. Any change
in ownership of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse Change. A material
adverse change occurs in Borrower’s financial condition, or Lender believes the prospect of payment or performance of the Loan is impaired.

 

Insecurity. Lender in good
faith believes itself insecure.

 

EFFECT OF AN EVENT OF DEFAULT.
If any Event of Default shall occur, except where otherwise provided in this Agreement or the Related Documents, all commitments and
obligations of Lender under this Agreement or the Related Documents or any other agreement immediately will terminate (including any obligation
to make further Loan Advances or disbursements), and, at Lender’s option, all Indebtedness immediately will become due and payable, all
without notice of any kind to Borrower, except that in the case of an Event of Default of the type described in the “Insolvency”
subsection above, such acceleration shall be automatic and not optional. In addition, Lender shall have all the rights and remedies provided
in the Related Documents or available at law, in equity, or otherwise. Except as may be prohibited by applicable law, all of Lender’s
rights and remedies shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy shall
not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Borrower or
of any Grantor shall not affect Lender’s right to declare a default and to exercise its rights and remedies.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 9

	 	 	 

 

 

ADDITIONAL DEFINITIONS. Certain
Defined Terms. For purposes of the foregoing financial covenants, the following terms are defined as follows:

 

Capital Expenditures means
any expenditure for fixed assets or that is properly chargeable to capital account in accordance with GAAP.

 

Current Assets means
assets that, in accordance with GAAP, are current assets; provided, however, that (a) inventories shall be taken into account on the basis
of cost or current market value, whichever is lower, or, to the extent that such inventories are required for delivery under then-existing
contracts, the applicable contract price, (b) current assets shall not include any intangible assets or any securities that are not readily
marketable, (c) securities included as current assets shall be taken into account at the current market price thereof, and (d) current
assets shall not include any amounts due from or owed by [any shareholder/partner/member] or Affiliate of the Borrower or any of its Subsidiaries.

 

Current Liabilities means,
as of the date of determination, all Debt maturing on demand or within one year from, and that is not renewable at the option of the obligor
to a date later than one year after, the date as of which such determination is made and all other items (including taxes accrued as estimated)
that, in accordance with GAAP, would be included as current liabilities.

 

Debt means (a) all indebtedness,
whether or not represented by bonds, debentures, notes or other securities, for the repayment of borrowed money, (b) all deferred
indebtedness for the payment of the purchase price of property or assets purchased, (c) all capitalized lease obligations, (a)  all
indebtedness secured by any Lien on any property of such person, whether or not indebtedness secured thereby has been assumed, (e)
all obligations with respect to any conditional sale contract or title retention agreement, (f) all indebtedness and obligations
arising under acceptance facilities or in connection with surety or similar bonds, and the outstanding amount of all letters of
credit issued for the account of such person, and (g) all obligations with respect to interest rate swap agreements.

 

Guaranteed Obligations means
all guaranties, endorsements, assumptions and other contingent obligations in respect of, or to purchase or to otherwise acquire, any
indebtedness, obligation or liability of another person.

 

Interest Expense means interest
payable on Debt during the period in question.

 

Lien means any mortgage, pledge,
assignment, charge, encumbrance, lien, security title, security interest or other preferential arrangement.

 

Net Cash Flow for any
period means Net Income (or the net deficit, if expenses and charges exceed revenues and other proper income credits) for such period,
plus amounts that have been deducted for (a) depreciation and (b) amortization in determining net income for such period.

 

Net Income means, for
any period and with respect to any person or entity, the net earnings (after income taxes) of such period, determined on a FIFO basis
and in accordance with GAAP, but excluding (a) any gain or loss arising from the sale of capital assets, (b) any gain arising from any
write-up of assets, (c) earnings from any person or entity, substantially all of the assets of which have been acquired in any manner
by the person or entity whose net income is measured, to the extent that such earnings were realized by such other person or entity prior
to the date of such acquisition, (d) net earnings of any other person or entity in which the person or entity whose net income is measured
has an ownership interest, unless such earnings have actually been received in the form of cash distributions, (e) the earnings of any
other person or entity to which assets of the person or entity whose net income is measured shall have been sold, transferred to, disposed
of, or into which the person or entity whose net income is measured shall have merged, to the extent that such earnings arise prior to
the date of such transaction, (f) any gain arising from the acquisition of any securities of the person or entity whose net income is
measured, and (g) any other extraordinary or nonrecurring gains.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 10

	 	 	 

 

 

Net Income Available for
Interest Payments for any period means Net Income (or the net deficit, if expenses and charges exceed revenues and other proper income
credits) for such period plus amounts that have been deducted for (a) Interest Expense, (b) income and profit taxes, and (c) amortization
of debt discount in determining net income for such period.

 

Permitted Contest means
any appropriate proceeding conducted in good faith by the Borrower to contest any tax, assessment, charge, Lien or similar claim, during
the pendency of which proceeding the enforcement of such tax, assessment, charge, Lien or claim is stayed; provided that the Borrower
has set aside on its books or, if required by the Lender, deposited as cash collateral with the Lender, adequate cash reserves to assure
the payment of any such tax, assessment, charge, Lien or claim.

 

Current Maturities means current
maturing or coming due on Debt during the period in question.

 

Current Ratio defined as current
assets/current liabilities (as defined by GAAP).

 

EBIDAR for any period
means Net Income (or the net deficit, if expenses and charges exceed revenues and other proper income credits) for such period, plus amounts
that have been deducted for (a) Interest Expense, (b) depreciation, (c) amortization and (d) Rent and Lease Expense for such period.

 

Short-Term Debt means all
Debt which by its terms matures within one year from, and which is not renewable at the option of the obligor to a date later than one
year after, the date such Debt was incurred. Any Debt that is extended or renewed (other than pursuant to the option of the obligor) shall
be deemed to have been incurred at the date of such extension or renewal.

 

Solvent means, as to any
person or entity, such person or entity (i) owns property whose fair salable value is greater than the amount required to pay all of such
person’s or entity’s debts (including contingent, subordinated, unmatured and unliquidated liabilities), (ii) owns property whose present
fair salable value is greater than the probable total liabilities (including contingent, subordinated, unmatured and unliquidated liabilities)
of such person or entity, (iii) is able to pay all of its debts as such debts mature, (iv) has capital that is not unreasonably small
for its business and is sufficient to carry on its business and transactions and all business and transactions in which it is about to
engage, (v) is not “insolvent” within the meaning of Section 101(32) of the United States Bankruptcy Code, and (vi) has not
incurred (by way of assumption or otherwise) any obligations or liabilities (contingent or otherwise) under any of the Loan documents,
or made any conveyance pursuant to or in connection therewith, with actual intent to hinder, delay or defraud either present or future
creditors of such person or entity or any of its Subsidiaries. As used herein, the term “fair salable value” of a person’s or
entity’s assets means the amount that may be realized within a reasonable time, either through collection or sale of such assets at the
regular market value, based upon the amount that could be obtained for such assets within such period by a capable and diligent seller
from an interested buyer who is willing (but is under no compulsion) to purchase under ordinary selling conditions.

 

Subsidiary or Subsidiaries
means, with respect to any person or entity, (a) any corporation more than fifty percent (50%) of whose outstanding stock having ordinary
voting power (and/or instruments convertible into such stock) is at the time directly or indirectly owned by such person or entity (irrespective
of whether or not at the time stock of any other class or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency); or (b) a partnership or other entity more than fifty percent (50%) of the ownership interest (and/or
instruments convertible into such interest) of which is owned directly or indirectly by such person or entity.

 

Tangible Net Worth means the sum of the
amounts set forth on the balance sheet as [shareholders’ equity][members’ capital accounts][partners’ capital accounts] (including
the par or stated value of all outstanding [capital stock][membership interests][partnership interests], retained earnings,
additional paid-in capital, capital surplus and earned surplus), less the sum of (a) any amount of any write-up of assets, (b)
goodwill, (c) patents, trademarks, copyrights, leasehold improvements not recoverable at the expiration of a lease, and deferred
charges (including unamortized debt, discount and expense, organization expenses, experimental and developmental expenses, but
excluding prepaid expenses), (d) any amounts at which shares of [capital stock][membership interests][partnership interests] of such
person appear on the asset side of the balance sheet and (e) any amounts due from or owed by any [shareholder][member][partner] or
Affiliate.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 11

	 	 	 

 

 

Total Liabilities means
all Debt and all other items (including taxes accrued as estimated) that, in accordance with GAAP would be included in determining total
liabilities as shown on the liabilities side of a balance sheet.

 

Quick Ratio means the ratio
of Current Assets, excluding inventory, to Current Liabilities.

 

EBIT for any period means
Net Income (or the net deficit, if expenses and charges exceed revenues and other proper income credits) for such period, plus amounts
that have been deducted for (a) Interest Expense, and (b) taxes (including, but not limited to, Income Tax Expense) for such period.

 

EBITDA for any period
means Net Income (or the net deficit, if expenses and charges exceed revenues and other proper income credits) for such period, plus amounts
that have been deducted for (a) Interest Expense, (b) taxes (including, but not limited to, Income Tax Expense), (c) depreciation, and
(d) amortization for such period.

 

EBITDAR for any period
means Net Income (or the net deficit, if expenses and charges exceed revenues and other proper income credits) for such period, plus amounts
that have been deducted for (a) Interest Expense, (b) taxes (including, but not limited to, Income Tax Expense), (c) depreciation, (d)
amortization and (e) Rent and Lease Expense for such period.

 

Fixed Charges for any
period means Interest Expense plus prior period Current Maturities of Long Term Debt plus Income Tax Expense plus Rent and Lease Expense
plus Maintenance Capital Expenditures plus Non Discretionary Dividends.

 

Maintenance Capital Expenditures
means the minimum amount of capital expenditures, not financed with Debt, needed to keep the company operating at its current level.
The amount of Maintenance Capital Expenditures will be provided by the Borrower to the Lender in an acceptable form. If such information
is not supplied or is not acceptable, Maintenance Capital Expenditures will be deemed to be 50% of depreciation expense.

 

Capital Leases means all
leases that would be characterized as a financed sale or purchase under GAAP or statutory accounting principles, as applicable.

 

Current Maturities of Long-Term
Debt or CMLTD means the principal portion of Long-Term Debt maturing by its terms within one year.

 

Global Liabilities means the
sum of all debts of the Borrower and Guarantor.

 

Global Tangible Net Worth means
the sum of the tangible net worth of the Borrower and Guarantor. The Guarantor’s tangible net worth will be net of personal property and
closely held securities, including ownership interests in closely held entities.

 

Net Global Income Available
for Global Debt Service means the business Net Income before interest, depreciation, and amortization expense, plus personal income
of the Guarantor adjusted for depreciation, taxes, and living expenses. Interest Expense and Principal Maturities will include the sum
of all annual principal and interest due on business and personal debt.

 

Operating Leases means
leases that are not Capital Leases; defined as a lease in which the entity does not assume the risks of ownership of the property, plant,
and equipment (PP&E). It is an agreement conveying the right to use property for a limited time in exchange for periodic rental payments.

 

Rent and Lease Expense means,
all amounts paid under any Operating Leases or other lease or rental agreement (other than obligations under Capital Leases) during the
period in question.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 12

	 	 	 

 

 

Income Tax Expense means
for any period any and all income taxes accrued, paid, or owed to any governmental body (e.g. local, state, or national) for such period.

 

Non Discretionary Dividends
means for any period all dividends or other distributions made by the Borrower or any of its subsidiaries with respect to any of its
stock, preferred stock, membership units, or other similar representation of ownership interest to which the Borrower or its subsidiary
is required to make for such period, which includes but not limited to income tax liabilities.

 

Gross Income means for any
period Net Sales minus cost of goods sold for such period.

 

Gross Sales means for any period
the total sales for such period.

 

Net Operating Income means
Gross Income less operating expenses including depreciation and amortization expense (but excluding Interest Expense and Income Tax Expense).

 

Net Sales means for any period
Gross Sales, less the net of returns and discounts allowed, for such period.

 

Minority Interests means
ownership interests (e.g. stock or membership units) in the Borrower that aggregate to less than fifty percent (50%) of all outstanding
ownership interests.

 

Lease Adjusted Funded Debt means
Funded Debt plus the Net Present Value of Non-cancelable Leases.

 

Year over Year Change in Sales
(Sales Growth) means for any period the ratio of the total Net Sales for such period to prior period Net Sales.

 

Net Income Available for
Debt Service for any period means Net Income (or the net deficit, if expenses and charges exceed revenues and other proper income
credits), plus amounts that have been deducted for (A) depreciation, (B) amortization and (C) Interest Expense for such period.

 

Recurring Items means
the aggregate of items of income and/or expense not otherwise accounted for that are determined by the Lender to be highly likely to continue
in the future as suggested by similar figures in historical financial statements.

 

Subordinated Debt means
all Debt owed to a third party individual or lender whereby the applicable third-party subordinates all of its rights pursuant to a written
agreement to enforce the Borrower’s obligations to the third-party lender to all of the Lender’s rights to enforce Borrower obligations
to Lender.

 

Trade Accounts Receivable (net)
means for any period all accounts receivable from trade net of allowance for debts.

 

Long Term Debt defined
as debt instruments with a maturity principal due date of one year or more in length; including revolving lines of credit, non-revolving
lines of credit, notes payable, bonds, loans, capital leases obligations and any other contractual debt instruments. Also includes the
portion of long term debt maturing within one year (current portion of long term debt).

 

Cash means all cash and
cash equivalents where cash equivalents are marketable securities with less than one year maturity and any other marketable liquid
securities. Cash includes all currency, petty cash, demand deposits, money market deposits and all time deposits or certificates of
deposit with a maturity of less than one (1) year. Cash does not include any restricted deposits such as sinking funds.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 13

	 	 	 

 

 

Liquid
Assets means the sum of cash, marketable securities, and the cash value of life insurance.

 

Net
Present Value of Non-cancelable Leases means the net present value of Operating Leases as determined by the Lender based upon Lender’s
review of Borrower’s financial statements.

 

Net
Worth means Total Assets less Total Liabilities.

 

Funded
Debt defined as total funded debt outstanding including lines of credit, over-drafts, short-term notes payable, current portion of
long term debt, long-term debt and any other contractual debt instruments.

 

PROHIBITED
USES OF PROCEEDS. No portion of the proceeds of this Loan or any Advance shall be used (i) to finance or refinance any commercial
paper issued by Borrower, or (ii) in any manner that causes or might cause this Loan or such Advance or the application of such Advance
to violate Regulation T, Regulation U or Regulation X of the Board of Governors of the Federal Reserve System as in effect from time
to time or any other regulation thereof or to violate the federal Securities Exchange Act.

 

FEES
AND EXPENSES FOR LOAN MODIFICATIONS. Unless prohibited by applicable law or unless it would constitute interest in excess of the
maximum rate allowed under applicable law, Borrower agrees to pay upon demand all of Lender’s costs and expenses, including reasonable
attorneys’ fees, incurred in connection with any Loan modification, amendment, restatement, supplement, restructuring, waiver or
consent relating hereto or thereto, whether or not any such amendment, restatement, supplement, restructuring, waiver or consent is executed
or becomes effective.

 

ELECTRONIC
SIGNATURE AND DELIVERY. With respect hereto (this “Instrument,” which definition is used solely in this paragraph, but
which applies to the entirety hereof), the parties to this Instrument agree as follows:

 

(a)
This Instrument may be signed manually and in one or more counterparts, each of which shall constitute one and the same agreement
and may be (i) delivered in person, via mail, hand delivery, overnight delivery or via other physical methods accepted by Lender or
(ii) delivered via facsimile transmission, via sending a scanned version of this Instrument (such as a PDF) via email or other
electronic methods accepted by Lender. This Instrument, as so signed and delivered as described in this clause (a) above, shall (i)
constitute an original hereof, (ii) be a valid and binding agreement and shall be fully admissible in any court of law or otherwise
and under any and all state and federal rules of evidence and (iii) if a promissory note, be enforceable under Uniform Commercial
Code (UCC) Section 3-309, UCC Section 3-604, or any other similar statute (with any provision thereof to the contrary being waived
hereby), without regard to any loss or destruction of any written counterpart hereof, the parties hereto agreeing that the
possession or maintenance of a signed and delivered scanned, electronic or digital version or copy hereof shall constitute
possession hereof under UCC Section 3-309 or any other similar statute (with any provision thereof to the contrary being waived
hereby), and shall not constitute the destruction hereof and shall not result in the cancellation or discharge of any obligation
evidenced hereby, notwithstanding UCC Section 3-604 or any other similar statute (with any provision thereof to the contrary being
waived hereby).

 

(b) This Instrument may also be signed and delivered via electronic means, including, without limitation, via services provided by DocuSign,
Inc., or any other electronic signature service provider accepted by Lender (each, an “E-Sign Provider”). This Instrument,
as so signed and delivered as described in this clause (b) above, shall constitute a valid and binding agreement, with the same force
and effect of an original, manually signed agreement, and shall be fully admissible in any court of law or otherwise and under any and
all state and federal rules of evidence. The foregoing in this clause (b) shall be supplementary to and shall not limit any similar provisions
the parties hereto have agreed to when using the services of an E-Sign Provider to sign and deliver this Instrument, and each of such
similar E-Sign Provider provisions shall not be excluded by any integration clause contained in this Instrument, but shall be included
as a part of this Instrument, except to the extent that there is any conflict between such similar E-Sign Provider provisions and the
provisions of this Instrument, in which case the provisions of this Instrument shall prevail. In the event that this Instrument is promissory
note issued, signed and delivered as described in this clause (b) above, the maker hereof, as issuer, has agreed that this Instrument
is a transferrable record under the Electronic Signatures in Global and National Commerce Act (ESIGN), Uniform Electronic Transactions
Act (UETA) and any other state electronic signature statute, and, without limiting the foregoing, with the effect that the holder of
this Instrument (or any party that has control hereof) shall have all rights and defenses as if a holder in due course under the UCC,
without the requirement of any physical delivery, possession, or indorsement.

 

(c)
Each electronic version or scanned copy of this Instrument shall also constitute an electronic record established and maintained by
the parties hereto in the ordinary course of business, shall constitute an original written record when printed from electronic
files, and any and all such printed copies shall be treated to the same extent and under the same conditions as other original
business records created and maintained in documentary form. Lender shall be entitled to rely on the scanned or other electronic
signatures of all parties to this Instrument without further verification thereof and without obligation to review the appearance or
form of any such electronic signature. Without limiting the effectiveness of any signature to, or delivery of, this Instrument by
any of the parties hereto as described in this paragraph above, in addition to the foregoing, all parties hereto agree to manually
execute a counterpart of this Instrument and deliver the same to Lender promptly if requested by Lender.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 14

	 	 	 

 

 

MISCELLANEOUS
PROVISIONS. The following miscellaneous provisions are a part of this Agreement:

 

Amendments.
This Agreement, together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the
matters set forth in this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed
by the party or parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’
Fees; Expenses. Borrower agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s attorneys’ fees and Lender’s
legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this
Agreement, and Borrower shall pay the costs and expenses of such enforcement. Costs and expenses include Lender’s attorneys’ fees and
legal expenses whether or not there is a lawsuit, including attorneys’ fees and legal expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Borrower
also shall pay all court costs and such additional fees as may be directed by the court.

 

Caption
Headings. Caption headings in this Agreement are for convenience purposes only and are not to be used to interpret or define the
provisions of this Agreement.

 

Consent
to Loan Participation. Borrower agrees and consents to Lender’s sale or transfer, whether now or later, of one or more participation
interests in the Loan to one or more purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation whatsoever,
to any one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other
matter relating to the Loan, and Borrower hereby waives any rights to privacy Borrower may have with respect to such matters. Borrower
additionally waives any and all notices of sale of participation interests, as well as all notices of any repurchase of such participation
interests. Borrower also agrees that the purchasers of any such participation interests will be considered as the absolute owners of
such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the sale of
such participation interests. Borrower further waives all rights of offset or counterclaim that it may have now or later against Lender
or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such purchaser may enforce
Borrower’s obligation under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan. Borrower further
agrees that the purchaser of any such participation interests may enforce its interests irrespective of any personal claims or defenses
that Borrower may have against Lender.

 

Governing
Law. This Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of
the State of Alabama without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of Alabama.

 

No
Waiver by Lender. Lender shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing
and signed by Lender. No delay or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any
other right. A waiver by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender’s right otherwise
to demand strict compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of
dealing between Lender and Borrower, or between Lender and any Grantor, shall constitute a waiver of any of Lender’s rights or of any
of Borrower’s or any Grantor’s obligations as to any future transactions. Whenever the consent of Lender is required under this Agreement,
the granting of such consent by Lender in any instance shall not constitute continuing consent to subsequent instances where such consent
is required and in all cases such consent may be granted or withheld in the sole discretion of Lender.

 

Notices.
Any notice required to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when
actually received by telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier,
or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid, directed to the
addresses shown near the beginning of this Agreement. Any party may change its address for notices under this Agreement by giving formal
written notice to the other parties, specifying that the purpose of the notice is to change the party’s address. For notice purposes,
Borrower agrees to keep Lender informed at all times of Borrower’s current address. Unless otherwise provided or required by law, if
there is more than one Borrower, any notice given by Lender to any Borrower is deemed to be notice given to all Borrowers.

 

Severability.
If a court of competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance,
that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the
offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be
so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability
of any provision of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 15

	 	 	 

 

 

Subsidiaries
and Affiliates of Borrower. To the extent the context of any provisions of this Agreement makes it appropriate, including without
limitation any representation, warranty or covenant, the word “Borrower” as used in this Agreement shall include all of Borrower’s
subsidiaries and affiliates. Notwithstanding the foregoing however, under no circumstances shall this Agreement be construed to require
Lender to make any Loan or other financial accommodation to any of Borrower’s subsidiaries or affiliates.

 

Successors
and Assigns. All covenants and agreements by or on behalf of Borrower contained in this Agreement or any Related Documents shall
bind Borrower’s successors and assigns and shall inure to the benefit of Lender and its successors and assigns. Borrower shall not, however,
have the right to assign Borrower’s rights under this Agreement or any interest therein, without the prior written consent of Lender.

 

Survival
of Representations and Warranties. Borrower understands and agrees that in extending Loan Advances, Lender is relying on all representations,
warranties, and covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by Borrower to Lender
under this Agreement or the Related Documents. Borrower further agrees that regardless of any investigation made by Lender, all such
representations, warranties and covenants will survive the extension of Loan Advances and delivery to Lender of the Related Documents,
shall be continuing in nature, shall be deemed made and redated by Borrower at the time each Loan Advance is made, and shall remain in
full force and effect until such time as Borrower’s Indebtedness shall be paid in full, or until this Agreement shall be terminated in
the manner provided above, whichever is the last to occur.

 

Time
is of the Essence. Time is of the essence in the performance of this Agreement.

 

Waive
Jury. All parties to this Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any
party against any other party.

 

DEFINITIONS.
The following capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated
to the contrary, all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms
used in the singular shall include the plural, and the plural shall include the singular, as the context may require. Words and terms
not otherwise defined in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code. Accounting words
and terms not otherwise defined in this Agreement shall have the meanings assigned to them in accordance with generally accepted accounting
principles as in effect on the date of this Agreement:

 

Advance.
The word “Advance” means a disbursement of Loan funds made, or to be made, to Borrower or on Borrower’s behalf under the
terms and conditions of this Agreement.

 

Agreement.
The word “Agreement” means this Business Loan Agreement (Asset Based), as this Business Loan Agreement (Asset Based) may
be amended or modified from time to time, together with all exhibits and schedules attached to this Business Loan Agreement (Asset Based)
from time to time.

 

Borrower.
The word “Borrower” means OCEAN BIO-CHEM, INC. and includes all co-signers and co-makers signing the Note and all their
successors and assigns.

 

Borrowing
Base. The words “Borrowing Base” mean, as determined by Lender from time to time, the lesser of (1) $6,000,000.00.

 

Business
Day. The words “Business Day” mean a day on which commercial banks are open in the State of Alabama.

 

Collateral.
The word “Collateral” means all property and assets granted as collateral security for a Loan, whether real or personal
property, whether granted directly or indirectly, whether granted now or in the future, and whether granted in the form of a security
interest, mortgage, collateral mortgage, deed of trust, assignment, pledge, crop pledge, chattel mortgage, collateral chattel mortgage,
chattel trust, factor’s lien, equipment trust, conditional sale, trust receipt, lien, charge, lien or title retention contract, lease
or consignment intended as a security device, or any other security or lien interest whatsoever, whether created by law, contract, or
otherwise. The word Collateral also includes without limitation all collateral described in the Collateral section of this Agreement.

 

Environmental
Laws. The words “Environmental Laws” mean any and all state, federal and local statutes, regulations and ordinances relating
to the protection of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”), the Superfund Amendments and Reauthorization
Act of 1986, Pub. L. No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the
Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations
adopted pursuant thereto.

 

Event
of Default. The words “Event of Default” mean any of the events of default set forth in this Agreement in the default section
of this Agreement.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 16

	 	 	 

 

 

Expiration
Date. The words “Expiration Date” mean the date of termination of Lender’s commitment to lend under this Agreement.

 

GAAP.
The word “GAAP” means generally accepted accounting principles.

 

Grantor.
The word “Grantor” means each and all of the persons or entities granting a Security Interest in any Collateral for the
Loan, including without limitation all Borrowers granting such a Security Interest.

 

Guarantor.
The word “Guarantor” means any guarantor, surety, or accommodation party of any or all of the Loan.

 

Guaranty.
The word “Guaranty” means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part
of the Note.

 

Hazardous
Substances. The words “Hazardous Substances” mean materials that, because of their quantity, concentration or physical,
chemical or infectious characteristics, may cause or pose a present or potential hazard to human health or the environment when improperly
used, treated, stored, disposed of, generated, manufactured, transported or otherwise handled. The words “Hazardous Substances”
are used in their very broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as
defined by or listed under the Environmental Laws. The term “Hazardous Substances” also includes, without limitation, petroleum
and petroleum by-products or any fraction thereof and asbestos.

 

Indebtedness.
The word “Indebtedness” means the indebtedness evidenced by the Note or Related Documents, including all principal and
interest together with all other indebtedness and costs and expenses for which Borrower is responsible under this Agreement or under
any of the Related Documents.

 

Lender.
The word “Lender” means Regions Bank, its successors and assigns.

 

Loan.
The word “Loan” means any and all loans and financial accommodations from Lender to Borrower whether now or hereafter existing,
and however evidenced, including without limitation those loans and financial accommodations described herein or described on any exhibit
or schedule attached to this Agreement from time to time.

 

Note.
The word “Note” means the Note dated July 30, 2021 and executed by OCEAN BIO-CHEM, INC. in the principal amount of $6,000,000.00,
together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note or
credit agreement.

 

Primary
Credit Facility. The words “Primary Credit Facility” mean the credit facility described in the Line of Credit section of
this Agreement.

 

Related
Documents. The words “Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental agreements,
guaranties, security agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements
and documents, whether now or hereafter existing, executed in connection with the Loan.

 

Security
Agreement. The words “Security Agreement” mean and include without limitation any agreements, promises, covenants, arrangements,
understandings or other agreements, whether created by law, contract, or otherwise, evidencing, governing, representing, or creating
a Security Interest.

 

Security
Interest. The words “Security Interest” mean, without limitation, any and all types of collateral security, present and
future, whether in the form of a lien, charge, encumbrance, mortgage, deed of trust, security deed, assignment, pledge, crop pledge,
chattel mortgage, collateral chattel mortgage, chattel trust, factor’s lien, equipment trust, conditional sale, trust receipt, lien or
title retention contract, lease or consignment intended as a security device, or any other security or lien interest whatsoever whether
created by law, contract, or otherwise.

 

     

     

    

 

BUSINESS LOAN AGREEMENT (ASSET BASED)

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 17

	 	 	 

 

 

BORROWER
ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS BUSINESS LOAN AGREEMENT (ASSET BASED) AND BORROWER AGREES TO ITS TERMS. THIS BUSINESS
LOAN AGREEMENT (ASSET BASED) IS DATED JULY 30, 2021.

 

THIS
AGREEMENT IS GIVEN UNDER SEAL AND IT IS INTENDED THAT THIS AGREEMENT IS AND SHALL CONSTITUTE AND HAVE THE EFFECT OF A SEALED INSTRUMENT
ACCORDING TO LAW.

 

BORROWER:

  

	OCEAN
    BIO-CHEM, INC.	 	 
	 	 	 	 
	By:	/s/ JEFFREY BAROCAS	(Seal)	 
	 	JEFFREY
    BAROCAS, 	 	 
	 	Chief
    Financial Officer of OCEAN BIO-CHEM, INC.	 	 

 

LENDER:

 

	REGIONS
    BANK	 	 
	 	 	 	 
	By:	 	(Seal)	 
	 	Authorized
    Signer	 	 

 

 

LaserPro,
Ver. 21.1.0.222 Copr. Finastra USA Corporation 1997, 2021. All Rights Reserved.Exhibit 10.4

 

 

*DOC17003000002302960300000009990000000*

 

 

 

COMMERCIAL
SECURITY AGREEMENT

 

	Principal

    $6,000,000.00
	Loan
    Date

 07-30-2021	Maturity

    08-30-2024	Bank/App

    01	Loan
    No

 00230296030000000999	Account

    0023029603	Officer
    K9GP4
	References
    in the shaded area are for Lender’s use only and do not limit the applicability of this document to any particular loan or item.

    Any
    item above containing “***” has been omitted due to text length limitations.

 

	Grantor:	OCEAN BIO-CHEM, INC.

      4041 SW 47 AVE

      FT LAUDERDALE, FL 333144023
	 	Lender:	Regions Bank

        MONTGOMERY: MIDDLE MARKET BANKING

        201 MONROE STREET

        ALMG60077B MONTGOMERY, AL 36104

 

		 	 

 

THIS
COMMERCIAL SECURITY AGREEMENT dated July 30, 2021, is made and executed between OCEAN BIO-CHEM, INC. (“Grantor”) and Regions
Bank (“Lender”).

 

GRANT
OF SECURITY INTEREST. For valuable consideration, Grantor grants to Lender a security interest in the Collateral to secure the Indebtedness
and agrees that Lender shall have the rights stated in this Agreement with respect to the Collateral, in addition to all other rights
which Lender may have by law.

 

COLLATERAL
DESCRIPTION. The word “Collateral” as used in this Agreement means the following described property, whether now owned
or hereafter acquired, whether now existing or hereafter arising, and wherever located, in which Grantor is giving to Lender a security
interest for the payment of the Indebtedness and performance of all other obligations under the Note and this Agreement:

 

All
Inventory and Accounts

 

In
addition, the word “Collateral” also includes all the following, whether now owned or hereafter acquired, whether now existing
or hereafter arising, and wherever located:

 

(A)
All accessions, attachments, accessories, replacements of and additions to any of the collateral described herein, whether added now
or later.

 

(B) All products and produce of any of the property described in this Collateral section.

 

(C)
All accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sale, lease,
consignment or other disposition of any of the property described in this Collateral section.

 

(D)
All proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described
in this Collateral section, and sums due from a third party who has damaged or destroyed the Collateral or from that party’s
insurer, whether due to judgment, settlement or other process.

 

(E)
All records and data relating to any of the property described in this Collateral section, whether in the form of a writing,
photograph, microfilm, microfiche, or electronic media, together with all of Grantor’s right, title, and interest in and to
all computer software required to utilize, create, maintain, and process any such records or data on electronic media.

 

Some
or all of the Collateral may be located on the following described real estate:

 

INVENTORY
#200501301419

 

CROSS-COLLATERALIZATION.
In addition to the Note, this Agreement secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender,
or any one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter
arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct or indirect,
determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually or jointly
with others, whether obligated as guarantor, surety, accommodation party or otherwise, and whether recovery upon such amounts may be
or hereafter may become barred by any statute of limitations, and whether the obligation to repay such amounts may be or hereafter may
become otherwise unenforceable.

 

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 2 

	 	 	 

 

 

RIGHT
OF SETOFF. To the extent permitted by applicable law, Lender reserves a right of setoff in all Grantor’s accounts with Lender (whether
checking, savings, or some other account). This includes all accounts Grantor holds jointly with someone else and all accounts Grantor
may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff would be prohibited
by law. Grantor authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the Indebtedness
against any and all such accounts, and, at Lender’s option, to administratively freeze all such accounts to allow Lender to protect Lender’s
charge and setoff rights provided in this paragraph.

 

GRANTOR’S
REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE COLLATERAL. With respect to the Collateral, Grantor represents and promises to
Lender that:

 

Perfection
of Security Interest. Grantor agrees to take whatever actions are requested by Lender to perfect and continue Lender’s security interest
in the Collateral. Upon request of Lender, Grantor will deliver to Lender any and all of the documents evidencing or constituting the
Collateral, and Grantor will note Lender’s interest upon any and all chattel paper and instruments if not delivered to Lender for possession
by Lender. This is a continuing Security Agreement and will continue in effect even though all or any part of the Indebtedness is
paid in full and even though for a period of time Grantor may not be indebted to Lender.

 

Notices
to Lender. Grantor will promptly notify Lender in writing at Lender’s address shown above (or such other addresses as
Lender may designate from time to time) prior to any (1) change in Grantor’s name; (2) change in Grantor’s assumed
business name(s); (3) change in the management of the Corporation Grantor; (4) change in the authorized signer(s); (5) change in
Grantor’s principal office address; (6) change in Grantor’s state of organization; (7) conversion of Grantor to a new or
different type of business entity; or (8) change in any other aspect of Grantor that directly or indirectly relates to any
agreements between Grantor and Lender. No change in Grantor’s name or state of organization will take effect until after
Lender has received notice.

 

No
Violation. The execution and delivery of this Agreement will not violate any law or agreement governing Grantor or to which Grantor
is a party, and its certificate or articles of incorporation and bylaws do not prohibit any term or condition of this Agreement.

 

Enforceability
of Collateral. To the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the Uniform
Commercial Code, the Collateral is enforceable in accordance with its terms, is genuine, and fully complies with all applicable laws
and regulations concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral
have authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. There shall be no setoffs or
counterclaims against any of the Collateral, and no agreement shall have been made under which any deductions or discounts may be claimed
concerning the Collateral except those disclosed to Lender in writing.

 

Location
of the Collateral. Except in the ordinary course of Grantor’s business, Grantor agrees to keep the Collateral at Grantor’s address
shown above or at such other locations as are acceptable to Lender. Upon Lender’s request, Grantor will deliver to Lender in form satisfactory
to Lender a schedule of real properties and Collateral locations relating to Grantor’s operations, including without limitation the following:
(1) all real property Grantor owns or is purchasing; (2) all real property Grantor is renting or leasing; (3) all storage facilities
Grantor owns, rents, leases, or uses; and (4) all other properties where Collateral is or may be located.

 

Removal
of the Collateral. Except in the ordinary course of Grantor’s business, Grantor shall not remove the Collateral from its existing
location without Lender’s prior written consent. Grantor shall, whenever requested, advise Lender of the exact location of the Collateral.

 

Transactions
Involving Collateral. Except for inventory sold or accounts collected in the ordinary course of Grantor’s business, or as
otherwise provided for in this Agreement, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral.
Grantor shall not pledge, mortgage, encumber or otherwise permit the Collateral to be subject to any lien, security interest,
encumbrance, or charge, other than the security interest provided for in this Agreement, without the prior written consent of
Lender. This includes security interests even if junior in right to the security interests granted under this Agreement. Unless
waived by Lender, all proceeds from any disposition of the Collateral (for whatever reason) shall be held in trust for Lender and
shall not be commingled with any other funds; provided however, this requirement shall not constitute consent by Lender to any sale
or other disposition. Upon receipt, Grantor shall immediately deliver any such proceeds to Lender.

 

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 3 

	 	 	 

 

 

Title.
Grantor represents and warrants to Lender that Grantor holds good and marketable title to the Collateral, free and clear of all liens
and encumbrances except for the lien of this Agreement. No financing statement covering any of the Collateral is on file in any public
office other than those which reflect the security interest created by this Agreement or to which Lender has specifically consented.
Grantor shall defend Lender’s rights in the Collateral against the claims and demands of all other persons.

 

Repairs
and Maintenance. Grantor agrees to keep and maintain, and to cause others to keep and maintain, the Collateral in good order, repair
and condition at all times while this Agreement remains in effect. Grantor further agrees to pay when due all claims for work done on,
or services rendered or material furnished in connection with the Collateral so that no lien or encumbrance may ever attach to or be
filed against the Collateral.

 

Inspection
of Collateral. Lender and Lender’s designated representatives and agents shall have the right at all reasonable times to examine
and inspect the Collateral wherever located.

 

Taxes,
Assessments and Liens. Grantor will pay when due all taxes, assessments and liens upon the Collateral, its use or operation, upon
this Agreement, upon any promissory note or notes evidencing the Indebtedness, or upon any of the other Related Documents. Grantor may
withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding to contest
the obligation to pay and so long as Lender’s interest in the Collateral is not jeopardized in Lender’s sole opinion. If the Collateral
is subjected to a lien which is not discharged within fifteen (15) days, Grantor shall deposit with Lender cash, a sufficient corporate
surety bond or other security satisfactory to Lender in an amount adequate to provide for the discharge of the lien plus any interest,
costs, reasonable attorneys’ fees or other charges that could accrue as a result of foreclosure or sale of the Collateral. In any contest
Grantor shall defend itself and Lender and shall satisfy any final adverse judgment before enforcement against the Collateral. Grantor
shall name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Grantor further agrees to furnish
Lender with evidence that such taxes, assessments, and governmental and other charges have been paid in full and in a timely manner.
Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding
to contest the obligation to pay and so long as Lender’s interest in the Collateral is not jeopardized.

 

Compliance
with Governmental Requirements. Grantor shall comply promptly with all laws, ordinances, rules and regulations of all governmental
authorities, now or hereafter in effect, applicable to the ownership, production, disposition, or use of the Collateral, including all
laws or regulations relating to the undue erosion of highly-erodible land or relating to the conversion of wetlands for the production
of an agricultural product or commodity. Grantor may contest in good faith any such law, ordinance or regulation and withhold compliance
during any proceeding, including appropriate appeals, so long as Lender’s interest in the Collateral, in Lender’s opinion, is not jeopardized.

 

Hazardous
Substances. Grantor represents and warrants that the Collateral never has been, and never will be so long as this Agreement remains
a lien on the Collateral, used in violation of any Environmental Laws or for the generation, manufacture, storage, transportation, treatment,
disposal, release or threatened release of any Hazardous Substance. The representations and warranties contained herein are based on
Grantor’s due diligence in investigating the Collateral for Hazardous Substances. Grantor hereby (1) releases and waives any future claims
against Lender for indemnity or contribution in the event Grantor becomes liable for cleanup or other costs under any Environmental Laws,
and (2) agrees to indemnify, defend, and hold harmless Lender against any and all claims and losses resulting from a breach of this provision
of this Agreement. This obligation to indemnify and defend shall survive the payment of the Indebtedness and the satisfaction of this
Agreement.

 

Maintenance
of Casualty Insurance. Grantor shall procure and maintain all risks insurance, including without limitation fire, theft and liability
coverage together with such other insurance as Lender may require with respect to the Collateral, in form, amounts, coverages and basis
reasonably acceptable to Lender and issued by a company or companies reasonably acceptable to Lender. Grantor, upon request of Lender,
will deliver to Lender from time to time the policies or certificates of insurance in form satisfactory to Lender, including stipulations
that coverages will not be cancelled or diminished without at least thirty (30) days’ prior written notice to Lender and not including
any disclaimer of the insurer’s liability for failure to give such a notice. Each insurance policy also shall include an endorsement
providing that coverage in favor of Lender will not be impaired in any way by any act, omission or default of Grantor or any other person.
In connection with all policies covering assets in which Lender holds or is offered a security interest, Grantor will provide Lender
with such loss payable or other endorsements as Lender may require. If Grantor at any time fails to obtain or maintain any insurance
as required under this Agreement, Lender may (but shall not be obligated to) obtain such insurance as Lender deems appropriate, including
if Lender so chooses “single interest insurance,” which will cover only Lender’s interest in the Collateral.

  

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 4 

	 	 	 

 

 

Application
of Insurance Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Collateral, whether or not such casualty
or loss is covered by insurance. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty. All
proceeds of any insurance on the Collateral, including accrued proceeds thereon, shall be held by Lender as part of the Collateral. If
Lender consents to repair or replacement of the damaged or destroyed Collateral, Lender shall, upon satisfactory proof of expenditure,
pay or reimburse Grantor from the proceeds for the reasonable cost of repair or restoration. If Lender does not consent to repair or
replacement of the Collateral, Lender shall retain a sufficient amount of the proceeds to pay all of the Indebtedness, and shall pay
the balance to Grantor. Any proceeds which have not been disbursed within six (6) months after their receipt and which Grantor has not
committed to the repair or restoration of the Collateral shall be used to prepay the Indebtedness.

 

Insurance
Reserves. Lender may require Grantor to maintain with Lender reserves for payment of insurance premiums, which reserves shall be
created by monthly payments from Grantor of a sum estimated by Lender to be sufficient to produce, at least fifteen (15) days before
the premium due date, amounts at least equal to the insurance premiums to be paid. If fifteen (15) days before payment is due, the reserve
funds are insufficient, Grantor shall upon demand pay any deficiency to Lender. The reserve funds shall be held by Lender as a general
deposit and shall constitute a non-interest-bearing account which Lender may satisfy by payment of the insurance premiums required to
be paid by Grantor as they become due. Lender does not hold the reserve funds in trust for Grantor, and Lender is not the agent of Grantor
for payment of the insurance premiums required to be paid by Grantor. The responsibility for the payment of premiums shall remain Grantor’s
sole responsibility.

 

Insurance
Reports. Grantor, upon request of Lender, shall furnish to Lender reports on each existing policy of insurance showing such information
as Lender may reasonably request including the following: (1) the name of the insurer; (2) the risks insured; (3) the amount of the policy;
(4) the property insured; (5) the then current value on the basis of which insurance has been obtained and the manner of determining
that value; and (6) the expiration date of the policy. In addition, Grantor shall upon request by Lender (however not more often than
annually) have an independent appraiser satisfactory to Lender determine, as applicable, the cash value or replacement cost of the Collateral.

 

Financing
Statements. Grantor authorizes Lender to file a UCC financing statement, or alternatively, a copy of this Agreement to perfect Lender’s
security interest. At Lender’s request, Grantor additionally agrees to sign all other documents that are necessary to perfect, protect,
and continue Lender’s security interest in the Property. Grantor will pay all filing fees, title transfer fees, and other fees and costs
involved unless prohibited by law or unless Lender is required by law to pay such fees and costs. Grantor irrevocably appoints Lender
to execute documents necessary to transfer title if there is a default. Lender may file a copy of this Agreement as a financing statement.

 

GRANTOR’S
RIGHT TO POSSESSION. Until default, Grantor may have possession of the tangible personal property and beneficial use of all the Collateral
and may use it in any lawful manner not inconsistent with this Agreement or the Related Documents, provided that Grantor’s right to possession
and beneficial use shall not apply to any Collateral where possession of the Collateral by Lender is required by law to perfect Lender’s
security interest in such Collateral. If Lender at any time has possession of any Collateral, whether before or after an Event of Default,
Lender shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral if Lender takes such action
for that purpose as Grantor shall request or as Lender, in Lender’s sole discretion, shall deem appropriate under the circumstances,
but failure to honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. Lender shall not
be required to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain
any security interest given to secure the Indebtedness.

 

LENDER’S
EXPENDITURES. If any action or proceeding is commenced that would materially affect Lender’s interest in the Collateral or
if Grantor fails to comply with any provision of this Agreement or any Related Documents, including but not limited to
Grantor’s failure to discharge or pay when due any amounts Grantor is required to discharge or pay under this Agreement or any
Related Documents, Lender on Grantor’s behalf may (but shall not be obligated to) take any action that Lender deems
appropriate, including but not limited to discharging or paying all taxes, liens, security interests, encumbrances and other claims,
at any time levied or placed on the Collateral and paying all costs for insuring, maintaining and preserving the Collateral. All
such expenditures incurred or paid by Lender for such purposes will then bear interest at the rate charged under the Note, or the
maximum rate permitted by law, whichever is less, from the date incurred or paid by Lender to the date of repayment by Grantor. All
such expenses will become a part of the Indebtedness and, at Lender’s option, will (A) be payable on demand; (B) be added to
the balance of the Note and be apportioned among and be payable with any installment payments to become due during either (1) the
term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment which will be
due and payable at the Note’s maturity. The Agreement also will secure payment of these amounts. Such right shall be in
addition to all other rights and remedies to which Lender may be entitled upon the occurrence of any Event of Default.

 

    	 	 	 

     

    

  

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 5 

	 	 	 

 

 

DEFAULT. Each of the following
shall constitute an Event of Default under this Agreement:

 

Payment Default. Grantor fails
to make any payment when due under the Indebtedness.

 

Other Defaults. Grantor fails
to comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related Documents
or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Grantor.

 

Default in Favor of Third Parties.
Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement, in favor
of any other creditor or person that may materially affect any of Grantor’s property or ability to perform Grantor’s obligations under
this Agreement or any of the Related Documents.

 

False Statements. Any warranty,
representation or statement made or furnished to Lender by Grantor or on Grantor’s behalf under this Agreement or the Related Documents
is false or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time
thereafter.

 

Defective Collateralization. This
Agreement or any of the Related Documents ceases to be in full force and effect (including failure of any collateral document to create
a valid and perfected security interest or lien) at any time and for any reason.

 

Insolvency. The dissolution
or termination of Grantor’s existence as a going business, the insolvency of Grantor, the appointment of a receiver for any part of Grantor’s
property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under any bankruptcy
or insolvency laws by or against Grantor.

 

Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method,
by any creditor of Grantor or by any governmental agency against any collateral securing the Indebtedness. This includes a garnishment
of any of Grantor’s accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good
faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding
and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond for
the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve or bond
for the dispute.

 

Events Affecting Guarantor. Any
of the preceding events occurs with respect to any guarantor, endorser, surety, or accommodation party of any of the Indebtedness or guarantor,
endorser, surety, or accommodation party dies or becomes incompetent or revokes or disputes the validity of, or liability under, any Guaranty
of the Indebtedness.

 

Adverse Change. A material
adverse change occurs in Grantor’s financial condition, or Lender believes the prospect of payment or performance of the Indebtedness
is impaired.

 

Insecurity. Lender in good
faith believes itself insecure.

 

RIGHTS AND REMEDIES ON DEFAULT.
If an Event of Default occurs under this Agreement, at any time thereafter, Lender shall have all the rights of a secured party under
the Florida Uniform Commercial Code. In addition and without limitation, Lender may exercise any one or more of the following rights and
remedies:

 

Accelerate Indebtedness. Lender
may declare the entire Indebtedness, including any prepayment penalty which Grantor would be required to pay, immediately due and payable,
without notice of any kind to Grantor.

 

Assemble Collateral. Lender
may require Grantor to deliver to Lender all or any portion of the Collateral and any and all certificates of title and other documents
relating to the Collateral. Lender may require Grantor to assemble the Collateral and make it available to Lender at a place to be designated
by Lender. Lender also shall have full power to enter upon the property of Grantor to take possession of and remove the Collateral. If
the Collateral contains other goods not covered by this Agreement at the time of repossession, Grantor agrees Lender may take such other
goods, provided that Lender makes reasonable efforts to return them to Grantor after repossession.

 

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 6 

	 	 	 

 

  

Sell the Collateral. Lender
shall have full power to sell, lease, transfer, or otherwise deal with the Collateral or proceeds thereof in Lender’s own name or that
of Grantor. Lender may sell the Collateral at public auction or private sale. Unless the Collateral threatens to decline speedily in value
or is of a type customarily sold on a recognized market, Lender will give Grantor, and other persons as required by law, reasonable notice
of the time and place of any public sale, or the time after which any private sale or any other disposition of the Collateral is to be
made. However, no notice need be provided to any person who, after Event of Default occurs, enters into and authenticates an agreement
waiving that person’s right to notification of sale. The requirements of reasonable notice shall be met if such notice is given at least
ten (10) days before the time of the sale or disposition. All expenses relating to the disposition of the Collateral, including without
limitation the expenses of retaking, holding, insuring, preparing for sale and selling the Collateral, shall become a part of the Indebtedness
secured by this Agreement and shall be payable on demand, with interest at the Note rate from date of expenditure until repaid.

 

Appoint Receiver. In the event
of a suit being instituted to foreclose this Agreement, Lender shall be entitled to apply at any time pending such foreclosure suit to
the court having jurisdiction thereof for the appointment of a receiver of any or all of the Collateral, and of all rents, incomes, profits,
issues and revenues thereof, from whatsoever source. The parties agree that the court shall forthwith appoint such receiver with the usual
powers and duties of receivers in like cases. Such appointment shall be made by the court as a matter of strict right to Lender and without
notice to Grantor, and without reference to the adequacy or inadequacy of the value of the Collateral, or to Grantor’s solvency or any
other party defendant to such suit. Grantor hereby specifically waives the right to object to the appointment of a receiver and agrees
that such appointment shall be made as an admitted equity and as a matter of absolute right to Lender, and consents to the appointment
of any officer or employee of Lender as receiver. Lender shall have the right to have a receiver appointed to take possession of all or
any part of the Collateral, with the power to protect and preserve the Collateral, to operate the Collateral preceding foreclosure or
sale, and to collect the rents from the Collateral and apply the proceeds, over and above the cost of the receivership, against the Indebtedness.
The receiver may serve without bond if permitted by law. Lender’s right to the appointment of a receiver shall exist whether or not the
apparent value of the Collateral exceeds the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person
from serving as a receiver.

 

Collect Revenues, Apply Accounts.
Lender, either itself or through a receiver, may collect the payments, rents, income, and revenues from the Collateral. Lender may at
any time in Lender’s discretion transfer any Collateral into Lender’s own name or that of Lender’s nominee and receive the payments, rents,
income, and revenues therefrom and hold the same as security for the Indebtedness or apply it to payment of the Indebtedness in such order
of preference as Lender may determine. Insofar as the Collateral consists of accounts, general intangibles, insurance policies, instruments,
chattel paper, choses in action, or similar property, Lender may demand, collect, receipt for, settle, compromise, adjust, sue for, foreclose,
or realize on the Collateral as Lender may determine, whether or not Indebtedness or Collateral is then due. For these purposes, Lender
may, on behalf of and in the name of Grantor, receive, open and dispose of mail addressed to Grantor; change any address to which mail
and payments are to be sent; and endorse notes, checks, drafts, money orders, documents of title, instruments and items pertaining to
payment, shipment, or storage of any Collateral. To facilitate collection, Lender may notify account debtors and obligors on any Collateral
to make payments directly to Lender.

 

Obtain Deficiency. If Lender
chooses to sell any or all of the Collateral, Lender may obtain a judgment against Grantor for any deficiency remaining on the Indebtedness
due to Lender after application of all amounts received from the exercise of the rights provided in this Agreement. Grantor shall be liable
for a deficiency even if the transaction described in this subsection is a sale of accounts or chattel paper.

 

Other Rights and Remedies. Lender
shall have all the rights and remedies of a secured creditor under the provisions of the Uniform Commercial Code, as may be amended from
time to time. In addition, Lender shall have and may exercise any or all other rights and remedies it may have available at law, in equity,
or otherwise.

 

Election of Remedies. Except
as may be prohibited by applicable law, all of Lender’s rights and remedies, whether evidenced by this Agreement, the Related Documents,
or by any other writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any remedy
shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation of Grantor
under this Agreement, after Grantor’s failure to perform, shall not affect Lender’s right to declare a default and exercise its remedies.

 

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 7 

	 	 	 

 

 

ELECTRONIC SIGNATURE AND DELIVERY.
With respect hereto (this “Instrument,” which definition is used solely in this paragraph, but which applies to the entirety
hereof), the parties to this Instrument agree as follows:

 

(a)
This Instrument may be signed manually and in one or more counterparts, each of which shall constitute one and the same agreement
and may be (i) delivered in person, via mail, hand delivery, overnight delivery or via other physical methods accepted by Lender or
(ii) delivered via facsimile transmission, via sending a scanned version of this Instrument (such as a PDF) via email or other
electronic methods accepted by Lender. This Instrument, as so signed and delivered as described in this clause (a) above, shall (i)
constitute an original hereof, (ii) be a valid and binding agreement and shall be fully admissible in any court of law or otherwise
and under any and all state and federal rules of evidence and (iii) if a promissory note, be enforceable under Uniform Commercial
Code (UCC) Section 3-309, UCC Section 3-604, or any other similar statute (with any provision thereof to the contrary being waived
hereby), without regard to any loss or destruction of any written counterpart hereof, the parties hereto agreeing that the
possession or maintenance of a signed and delivered scanned, electronic or digital version or copy hereof shall constitute
possession hereof under UCC Section 3-309 or any other similar statute (with any provision thereof to the contrary being waived
hereby), and shall not constitute the destruction hereof and shall not result in the cancellation or discharge of any obligation
evidenced hereby, notwithstanding UCC Section 3-604 or any other similar statute (with any provision thereof to the contrary being
waived hereby).

 

(b)
This Instrument may also be signed and delivered via electronic means, including, without limitation, via services provided by
DocuSign, Inc., or any other electronic signature service provider accepted by Lender (each, an “E-Sign Provider”). This
Instrument, as so signed and delivered as described in this clause (b) above, shall constitute a valid and binding agreement, with
the same force and effect of an original, manually signed agreement, and shall be fully admissible in any court of law or otherwise
and under any and all state and federal rules of evidence. The foregoing in this clause (b) shall be supplementary to and shall not
limit any similar provisions the parties hereto have agreed to when using the services of an E-Sign Provider to sign and deliver
this Instrument, and each of such similar E-Sign Provider provisions shall not be excluded by any integration clause contained in
this Instrument, but shall be included as a part of this Instrument, except to the extent that there is any conflict between such
similar E-Sign Provider provisions and the provisions of this Instrument, in which case the provisions of this Instrument shall
prevail. In the event that this Instrument is promissory note issued, signed and delivered as described in this clause (b) above,
the maker hereof, as issuer, has agreed that this Instrument is a transferrable record under the Electronic Signatures in Global and
National Commerce Act (ESIGN), Uniform Electronic Transactions Act (UETA) and any other state electronic signature statute, and,
without limiting the foregoing, with the effect that the holder of this Instrument (or any party that has control hereof) shall have
all rights and defenses as if a holder in due course under the UCC, without the requirement of any physical delivery, possession, or
indorsement.

   

(c)
Each electronic version or scanned copy of this Instrument shall also constitute an electronic record established and maintained by
the parties hereto in the ordinary course of business, shall constitute an original written record when printed from electronic
files, and any and all such printed copies shall be treated to the same extent and under the same conditions as other original
business records created and maintained in documentary form. Lender shall be entitled to rely on the scanned or other electronic
signatures of all parties to this Instrument without further verification thereof and without obligation to review the appearance or
form of any such electronic signature. Without limiting the effectiveness of any signature to, or delivery of, this Instrument by
any of the parties hereto as described in this paragraph above, in addition to the foregoing, all parties hereto agree to manually
execute a counterpart of this Instrument and deliver the same to Lender promptly if requested by Lender.

 

MISCELLANEOUS PROVISIONS. The
following miscellaneous provisions are a part of this Agreement:

 

Amendments. This Agreement,
together with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in
this Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or
parties sought to be charged or bound by the alteration or amendment.

 

Attorneys’ Fees; Expenses. Grantor
agrees to pay upon demand all of Lender’s costs and expenses, including Lender’s reasonable attorneys’ fees and Lender’s legal expenses,
incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce this Agreement, and
Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender’s reasonable attorneys’ fees and legal
expenses whether or not there is a lawsuit, including reasonable attorneys’ fees and legal expenses for bankruptcy proceedings (including
efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated post-judgment collection services. Grantor
also shall pay all court costs and such additional fees as may be directed by the court.

 

Caption Headings. Caption headings
in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.

  

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 8 

	 	 	 

 

 

Governing Law. With respect
to procedural matters related to the perfection and enforcement of Lender’s rights against the Collateral, this Agreement will be governed
by federal law applicable to Lender and to the extent not preempted by federal law, the laws of the State of Florida. In all other respects,
this Agreement will be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the
State of Alabama without regard to its conflicts of law provisions. However, if there ever is a question about whether any provision
of this Agreement is valid or enforceable, the provision that is questioned will be governed by whichever state or federal law would
find the provision to be valid and enforceable. The loan transaction that is evidenced by the Note and this Agreement has been applied
for, considered, approved and made, and all necessary loan documents have been accepted by Lender in the State of Alabama.

 

No Waiver by Lender. Lender
shall not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay
or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver by Lender
of a provision of this Agreement shall not prejudice or constitute a waiver of Lender’s right otherwise to demand strict compliance with
that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between Lender and Grantor,
shall constitute a waiver of any of Lender’s rights or of any of Grantor’s obligations as to any future transactions. Whenever the consent
of Lender is required under this Agreement, the granting of such consent by Lender in any instance shall not constitute continuing consent
to subsequent instances where such consent is required and in all cases such consent may be granted or withheld in the sole discretion
of Lender.

 

Notices. Any notice required
to be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually received by
telefacsimile (unless otherwise required by law), when deposited with a nationally recognized overnight courier, or, if mailed, when deposited
in the United States mail, as first class, certified or registered mail postage prepaid, directed to the addresses shown near the beginning
of this Agreement. Any party may change its address for notices under this Agreement by giving written notice to the other parties, specifying
that the purpose of the notice is to change the party’s address. For notice purposes, Grantor agrees to keep Lender informed at all times
of Grantor’s current address. Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender
to any Grantor is deemed to be notice given to all Grantors.

 

Power of Attorney. Grantor
hereby appoints Lender as Grantor’s irrevocable attorney-in-fact for the purpose of executing any documents necessary to perfect, amend,
or to continue the security interest granted in this Agreement or to demand termination of filings of other secured parties. Lender may
at any time, and without further authorization from Grantor, file a carbon, photographic or other reproduction of any financing statement
or of this Agreement for use as a financing statement. Grantor will reimburse Lender for all expenses for the perfection and the continuation
of the perfection of Lender’s security interest in the Collateral.

 

Severability. If a court of
competent jurisdiction finds any provision of this Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding
shall not make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If feasible, the offending provision
shall be considered modified so that it becomes legal, valid and enforceable. If the offending provision cannot be so modified, it shall
be considered deleted from this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability of any provision
of this Agreement shall not affect the legality, validity or enforceability of any other provision of this Agreement.

 

Successors and Assigns. Subject
to any limitations stated in this Agreement on transfer of Grantor’s interest, this Agreement shall be binding upon and inure to the benefit
of the parties, their successors and assigns. If ownership of the Collateral becomes vested in a person other than Grantor, Lender, without
notice to Grantor, may deal with Grantor’s successors with reference to this Agreement and the Indebtedness by way of forbearance or extension
without releasing Grantor from the obligations of this Agreement or liability under the Indebtedness.

 

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 9 

	 	 	 

 

 

Survival of Representations and
Warranties. All representations, warranties, and agreements made by Grantor in this Agreement shall survive the execution and delivery
of this Agreement, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor’s Indebtedness
shall be paid in full.

 

Time is of the Essence. Time
is of the essence in the performance of this Agreement.

  

Waive Jury. All parties to this
Agreement hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party.

 

DEFINITIONS. The following
capitalized words and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary,
all references to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular
shall include the plural, and the plural shall include the singular, as the context may require. Words and terms not otherwise defined
in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code:

 

Agreement. The word “Agreement”
means this Commercial Security Agreement, as this Commercial Security Agreement may be amended or modified from time to time, together
with all exhibits and schedules attached to this Commercial Security Agreement from time to time.

 

Borrower. The word “Borrower”
means OCEAN BIO-CHEM, INC. and includes all co-signers and co-makers signing the Note and all their successors and assigns.

 

Collateral. The word “Collateral”
means all of Grantor’s right, title and interest in and to all the Collateral as described in the Collateral Description section of this
Agreement.

 

Environmental Laws. The words
“Environmental Laws” mean any and all state, federal and local statutes, regulations and ordinances relating to the protection
of human health or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability
Act of 1980, as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986,
Pub. L. No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation
and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant thereto.

 

Event of Default. The words “Event
of Default” mean any of the events of default set forth in this Agreement in the default section of this Agreement.

 

Grantor. The word “Grantor”
means OCEAN BIO-CHEM, INC..

 

Guaranty. The word “Guaranty”
means the guaranty from guarantor, endorser, surety, or accommodation party to Lender, including without limitation a guaranty of all
or part of the Note.

 

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 10 

	 	 	 

 

  

Hazardous Substances. The words
“Hazardous Substances” mean materials that, because of their quantity, concentration or physical, chemical or infectious characteristics,
may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed of,
generated, manufactured, transported or otherwise handled. The words “Hazardous Substances” are used in their very broadest
sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed under the Environmental
Laws. The term “Hazardous Substances” also includes, without limitation, petroleum and petroleum by-products or any fraction
thereof and asbestos.

 

Indebtedness. The word “Indebtedness”
means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other indebtedness
and costs and expenses for which Grantor is responsible under this Agreement or under any of the Related Documents. Specifically, without
limitation, Indebtedness includes all amounts that may be indirectly secured by the Cross-Collateralization provision of this Agreement.

 

Lender. The word “Lender”
means Regions Bank, its successors and assigns.

 

Note. The word
“Note” means the Note dated July 30, 2021 and executed by OCEAN BIO-CHEM, INC. in the principal amount of $6,000,000.00,
together with all renewals of, extensions of, modifications of, refinancings of, consolidations of, and substitutions for the note
or credit agreement.

 

Property. The word “Property”
means all of Grantor’s right, title and interest in and to all the Property as described in the “Collateral Description” section
of this Agreement.

 

Related Documents. The words
“Related Documents” mean all promissory notes, credit agreements, loan agreements, environmental agreements, guaranties, security
agreements, mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether
now or hereafter existing, executed in connection with the Indebtedness.

 

    	 	 	 

     

    

 

COMMERCIAL SECURITY AGREEMENT

	
    Loan
No: 00230296030000000999 
	
    (Continued) 
	
    Page 11 

	 	 	 

 

 

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS
OF THIS COMMERCIAL SECURITY AGREEMENT AND AGREES TO ITS TERMS. THIS AGREEMENT IS DATED JULY 30, 2021.

 

GRANTOR:

 

OCEAN BIO-CHEM, INC.

 

	By:	/s/ JEFFREY BAROCAS	 
	 	JEFFREY BAROCAS,

    Chief Financial Officer of 

    OCEAN BIO-CHEM, INC.	 

 

 

LaserPro,
Ver. 21.1.0.222 Copr. Finastra USA Corporation 1997, 2021. All Rights Reserved.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00332-of-00352.parquet"}]]