Document:

Exhibit 10.4

 

	PRIVATE
    & CONFIDENTIAL

 

LETTER
AGREEMENT

 

	From: 	EVO
    Transportation & Energy Services, Inc. 
	To:	Antara
        Capital LP

 

Ladies
and Gentlemen,

 

Reference
is made to (i) that certain Indicative Term Sheet, by and between EVO Transportation & Energy Services, Inc. (“EVO”
or the “Company”) and Antara Capital LP (together with its affiliates and co-investors, “Antara”)
(the “Term Sheet”) and (ii) that certain Financing Agreement, dated as of the date hereof, by and among, Antara,
EVO, Cortland Capital Market Services LLC, as administrative agent and collateral agent, and the banks, financial institutions
and other entities from time to time party thereto (the “Financing Agreement”).

 

Pursuant
to the Term Sheet, EVO and Antara (the “Parties”) contemplated entering into an arrangement consisting of the
terms set forth on Exhibit A hereto in conjunction with, and as partial consideration for Antara’s willingness to
execute, the Financing Agreement.

 

In
consideration of the foregoing and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the Parties agree as follows:

 

		1.	Collateral
                                         Agreement. By entering into this letter agreement (this “Agreement”),
                                         the Parties hereby agree to take the necessary steps, as promptly as practicable after
                                         the Closing Date (as that term is defined in the Financing Agreement), to enter into
                                         all necessary agreements and to take all actions required in order to effectuate and
                                         render legally binding the arrangement set forth on Exhibit A hereto.

 

		2.	Counterparts.
                                         This Agreement may be executed and delivered (including by electronic transmission) in
                                         one or more counterparts, each of which will be deemed to be an original copy of this
                                         Agreement and all of which, when taken together, will be deemed to constitute one and
                                         the same agreement.

 

		3.	Severability.
                                         Any term or provision of this Agreement that is invalid or unenforceable in any situation
                                         or in any jurisdiction shall not affect the validity or enforceability of the remaining
                                         terms and provisions hereof or the validity or enforceability of the offending term or
                                         provision in any other situation or in any other jurisdiction.

 

		4.	Governing
                                         Law. This Agreement shall be governed by, and construed in accordance with, the laws
                                         of the State of New York, without reference to conflict of law principles, including
                                         all matters of construction, validity and performance.

 

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		5.	Submission
                                         to Jurisdiction. Any state or federal court sitting in New York, New York will retain
                                         exclusive jurisdiction to enforce the terms of this Agreement and to decide any claims
                                         or disputes which may arise or result from, or be connected with, this Agreement. Any
                                         and all judicial, administrative or arbitral actions, suits, proceedings (public or private),
                                         investigations, claims or demands (collectively, “Legal Proceedings”)
                                         related to the foregoing will be filed and maintained only in New York state or federal
                                         court, and the Parties hereby consent to and submit to the jurisdiction and venue of
                                         such New York state or federal court for such purposes. The Parties hereby irrevocably
                                         waive, to the fullest extent permitted by applicable law, any objection which they may
                                         now or hereafter have to the laying of venue of any such dispute brought in such court
                                         or any defense of inconvenient forum for the maintenance of such dispute. Each of the
                                         Parties agrees that a judgment in any such Legal Proceeding may be enforced in other
                                         jurisdictions by suit on the judgment or in any other manner provided by any federal,
                                         state, local or foreign law, statute, directive, code, ordinance, rule or regulation,
                                         binding interpretations or common law requirement.

 

		6.	Binding
                                         Effect. This Agreement shall be binding upon and inure to the benefit of the Parties
                                         and their respective heirs, legal representatives, successors and permitted assigns.
                                         EVO may not assign this agreement without the prior written consent of Antara. Antara
                                         and its successors and assigns may freely assign this Agreement.

 

		7.	Headings.
                                         Headings are for convenience only and shall not affect the interpretation of this Agreement.

 

		8.	Further
                                         Assurances. Each of the Parties agrees that it will take such actions and execute
                                         such additional documents as may be reasonably requested by the other Party in order
                                         to effectuate more fully the purposes and intent of this Agreement.

 

		9.	Specific
                                         Performance. In the event of any actual or threatened default in, or breach of, any
                                         of the terms, conditions and provisions of this Agreement, the Party who is or is to
                                         be thereby aggrieved will have the right of specific performance and injunctive relief
                                         giving effect to its or their rights under this Agreement, in addition to any and all
                                         other rights and remedies at law or in equity, and all such rights and remedies will
                                         be cumulative. The Parties agree that any such breach or threatened breach would cause
                                         irreparable injury, that the remedies at law for any such breach or threatened breach,
                                         including monetary damages, are inadequate compensation for any loss and that any defense
                                         in any action for specific performance that a remedy at law would be adequate is waived.

 

 

[REMAINDER
OF PAGE HAS INTENTIONALLY BEEN LEFT BLANK]

 

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Please
acknowledge receipt hereof and agreement with the terms embodied herein by signing in the space provided below and returning a
fully executed copy of this Agreement to the undersigned as soon as possible.

 

	 	Very
    truly yours,
	 	 
	 	EVO
    TRANSPORTATION & ENERGY SERVICES, INC.
	 	 
	 	By:	/s/
    Damon Cuzick
	 	Name:	Damon Cuzick
	 	Title:	President

 

     

     

    

 

Antara
Capital Master Fund LP

 

	By:	Antara
    Capital LP	 
	 	not in its
    individual corporate capacity,	 
	 	but
solely as Investment Advisor and agent	 

 

	By:	Antara
    Capital GP LLC,	 
	 	its general
    partner	 

 

	By:	/s/ Himanshu
    Gulati	 
	Name: 	Himanshu
    Gulati	 
	Title:	Managing
    Member	 
	Date:	9/16/19	 

 

     

     

    

 

EXHIBIT
A

 

Collateral
Agreement Terms

 

	a.	Warrant:
                                         The Company shall issue Antara a warrant (the “Warrant”) to purchase
                                         up to 1,500,000 shares of common stock of the Company (the “Warrant Shares”)
                                         at an exercise price of $0.01 per share. The Warrant shall be exercisable as described
                                         in paragraph (d)(ii) below.

	b.	Completion
                                         of Acquisition by End Date: In the event that the Loadtrek acquisition is consummated
                                         within ninety (90) days following the date of this Agreement (the “End Date”),
                                         the Warrant and the number of Warrant Shares issuable upon exercise of the Warrant shall
                                         be adjusted or canceled as follows:

		i.	If
the assets acquired pursuant to the Loadtrek acquisition have a value equal to or greater than $3,750,000, then the Warrant shall
automatically be canceled.

 

		ii.	If
the assets acquired pursuant to the Loadtrek acquisition have a value less than $3,750,000 (the amount of such shortfall, the
“Shortfall Amount”), the number of Warrant Shares issuable upon exercise of the Warrant shall automatically
be reduced to a number of shares equal to (A) the Shortfall Amount divided by (B) $2.50.

 

	c.

                                                                                 
	Completion
                                         of Acquisition After End Date: In the event that the Loadtrek acquisition is consummated
                                         after the End Date but prior to September 30, 2021 (the “Performance Trigger
                                         Deadline”), the Warrant and the number of Warrant Shares issuable upon exercise
                                         of the Warrant shall be adjusted or canceled as follows:

		i.	If
the assets acquired pursuant to the Loadtrek acquisition have a value equal to or greater than $3,750,000, then the Warrant shall
automatically be canceled.
	 	 	 
		ii.	If
the assets acquired pursuant to the Loadtrek acquisition have a value less than $3,750,000, the number of Warrant Shares issuable
upon exercise of the Warrant shall automatically be reduced to a number of shares equal to (A) 100,000 plus (B) an amount
equal to (1) the Shortfall Amount divided by (2) $2.50.

 

	d.	Performance
                                         Trigger Events: 

		i.	Notwithstanding
whether or not and/or the value of the assets acquired pursuant to the Loadtrek acquisition, if the Company achieves the performance
levels for EBITDA set forth in the Projections (as that term is defined in the Financing Agreement) in the form delivered on the
Closing Date (as that term is defined in the Financing Agreement) for two consecutive full fiscal quarters during the period beginning
with the first fiscal quarter beginning after the issuance of the Warrant and ending on the Performance Trigger Deadline (the
“Performance Trigger”), the Warrant shall automatically be canceled.
	 	 	 
		ii.	If
the Performance Trigger is not achieved on or prior to the Performance Trigger Deadline and the Warrant has not
previously been canceled pursuant to paragraphs (b) or (c) above, the Warrant shall become exercisable from and after the Performance
Trigger Deadline.

 

	e.	Terms
                                         of Acquisition: The Loadtrek acquisition and its terms shall be subject to the review
                                         and approval of Antara.Exhibit 10.5

 

SUBORDINATION AGREEMENT

(Affiliated Creditor)

 

This SUBORDINATION
AGREEMENT, dated as of September 16, 2019 (this “Agreement”), is among Danny R. Cuzick (the “Subordinated
Lender”), EVO Transportation & Entergy Services, Inc. (the “Subordinated Borrower”), and Cortland
Capital Market Services LLC, in its capacity as collateral agent under the Financing Agreement described below (in such capacity
and together with its successors and assigns acting in such capacity, the “Collateral Agent”).

 

The Subordinated Borrower,
Cortland Capital Market Services LLC, as the administrative agent (the “Administrative Agent”) and collateral
agent, and the banks, financial institutions and other entities from time to time party thereto (collectively, the “Secured
Parties”) have entered into that certain Financing Agreement, dated as of September 16, 2019 (as amended, amended and
restated, supplemented, or otherwise modified, renewed, replaced or refinanced from time to time, the “Financing Agreement”).
Unless otherwise defined herein or the context otherwise requires, capitalized terms used in this Agreement have the meanings provided
in the Financing Agreement.

 

The ability under the
Financing Agreement of the Subordinated Borrower to incur indebtedness to the Subordinated Lender is conditioned upon the execution
and delivery by the Subordinated Lender and the Subordinated Borrower of an agreement in the form hereof pursuant to which the
Subordinated Lender agrees to subordinate its rights with respect to the Subordinated Obligations (as defined below) to the rights
of the Secured Parties, all on the terms set forth herein.

 

Accordingly, the Subordinated
Lender, the Subordinated Borrower and the Collateral Agent (on behalf of the Secured Parties) (and each of their respective successors
or assigns), hereby agree as follows:

 

SECTION 1. SUBORDINATION.

 

(a) The Subordinated
Lender hereby agrees that all Subordinated Obligations (as defined below) and all of its right, title and interest in and to the
Subordinated Obligations shall be subordinate and junior in right of payment to the Obligations and all rights of the Secured Parties
in respect of the Obligations, including, in each case, the payment of principal, premium (if any), interest (including interest
accruing on or after the filing of any petition in bankruptcy or for reorganization relating to the Subordinated Borrower or any
of its affiliates whether or not a claim for post-filing interest is allowed or allowable in any such proceeding), fees, charges,
expenses, indemnities, reimbursement obligations and all other amounts payable thereunder or in respect thereof and all refinancings,
replacements, substitutions and renewals of all of the foregoing (all of the above, collectively, the “Senior Obligations”).
For purposes hereof, “Subordinated Obligations” means all obligations of the Subordinated Borrower to the Subordinated
Lender in respect of loans, advances, extensions of credit or other indebtedness, including in respect of principal, premium (if
any), interest, fees, charges, expenses, indemnities, reimbursement obligations and all other amounts payable in respect thereof,
under loan documentation entered into by Subordinated Borrower in favor of Subordinated Lender that is identified on Schedule
1 hereto.

 

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(b) The Subordinated
Borrower and the Subordinated Lender agree that, except as provided in this Section 1(b), no payment (whether directly or
by purchase, redemption or exercise of any right of setoff or otherwise) in respect of the Subordinated Obligations, whether as
principal, interest or otherwise, and whether in cash, securities or other property, shall be made by or on behalf of the Subordinated
Borrower or received, accepted or demanded, directly or indirectly, by or on behalf of the Subordinated Lender until such time
as all Senior Obligations have been paid in full (as defined in the Financing Agreement). Notwithstanding anything to the contrary
set forth in this Agreement, Collateral Agent acknowledges and agrees that, until the Collateral Agent delivers written notice
to Subordinated Lender that an Event of Default under and as defined in the Financing Agreement has occurred and is continuing,
Subordinated Borrower may deliver, and Subordinated Lender may receive and retain, cash payments of regularly scheduled interest
when due on the Subordinated Obligations.

 

(c) Notwithstanding
(i) the time, manner, order or method of grant, creation, attachment, validity, enforceability or perfection of any Liens in the
collateral securing the Senior Obligations, (ii) the date on which any Senior Obligations are extended, (iii) any provision of
the UCC, or any other applicable law, including any rule for determining priority thereunder or under any other law or rule governing
the relative priorities of secured creditors, including with respect to real property or fixtures, (iv) any provision set forth
in any Loan Term Document (other than this Agreement), or (v) the possession or control by any Collateral Agent or any Secured
Party or any bailee of all or any part of any Collateral as of the date hereof or otherwise, each Subordinated Lender hereby agrees
that any Lien with respect to the Collateral securing the Senior Obligations now or hereafter held by or on behalf of the Collateral
Agent or any other Secured Parties or any agent or trustee therefor, regardless of how or when acquired, whether by grant, possession,
statute, operation of law, subrogation, or otherwise, shall be senior in all respects and prior to any Liens with respect to the
Collateral securing any Subordinated Obligations. Subordinated Lender agrees to release its Liens on any Collateral that is sold
pursuant to an Asset Sale and the Net Proceeds of any such Asset Sale and in particular shall not be entitled to receive or apply
any such Net Proceeds of an Asset Sale to the Junior Obligations, and to release its Liens on any compressed natural gas fueling
station in connection with the occurrence of a CNG Asset Sale; provided, however, Collateral Agent acknowledges and agrees that,
until the Collateral Agent delivers written notice to Subordinated Lender that an Event of Default under and as defined in the
Financing Agreement has occurred and is continuing, Subordinated Borrower may deliver, and Subordinated Lender may receive and
retain, cash payments consisting of the Net Proceeds of a CNG Asset Sale that are available to Subordinated Borrower pursuant to
the Financing Agreement. Subordinated Lender hereby expressly acknowledges that, and consents to Subordinated Borrower’s
agreement that, Collateral Agent shall retain as collateral subject to the Liens securing the Senior Obligations the Held CNG Asset
Sale Proceeds pursuant to Section 6.14 of the Financing Agreement and further agrees that until released by Collateral Agent to
Subordinated Borrower pursuant to Section 6.14 of the Financing Agreement, such Held CNG Asset Sale Proceeds may be applied to
satisfy the Senior Obligations following the occurrence and during the continuance of an Event of Default under the Financing Agreement.
If prior to consummation of any such CNG Asset Sale the Company and its Subsidiaries have achieved the performance levels set forth
in the Projections for two consecutive Fiscal Quarters commencing with the Fiscal Quarter ending March 31, 2020, then the Liens
in favor of Collateral Agent encumbering assets and equity of EVO CNG LLC will be promptly released and reconveyed.

 

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(d) Upon any distribution
of the assets of the Subordinated Borrower or upon any dissolution, winding up, liquidation or reorganization of the Subordinated
Borrower, whether in bankruptcy, insolvency, reorganization, arrangement or receivership proceedings or otherwise, or upon any
assignment for the benefit of creditors or any other marshalling of the assets and liabilities of the Subordinated Borrower, or
otherwise:

 

(i) the Secured
Parties shall first be entitled to receive indefeasible payment in full of all Senior Obligations (whenever arising) and only after
the Senior Obligations have been paid in full shall the Subordinated Lender be entitled to receive any payment on account of the
Subordinated Obligations of the Subordinated Borrower, whether of principal, interest or otherwise; and

 

(ii) any
payment by, or on behalf of, or distribution of the assets of, the Subordinated Borrower of any kind or character, whether in cash,
securities or other property, to which the Subordinated Lender would be entitled except for the provisions of this Section 1
shall be paid or delivered by the person making such payment or distribution (whether a trustee in bankruptcy, a receiver, custodian
or liquidating trustee or otherwise) directly to the Collateral Agent, until all of the Senior Obligations have been paid in full.

 

Until all Senior Obligations
have been paid in full, the Subordinated Lender agrees not to ask, demand, sue for or take or receive from the Subordinated Borrower
in cash, securities or other property or by setoff, purchase or redemption (including, without limitation, from or by way of collateral),
payment of all or any part of the Subordinated Obligations, except as otherwise provided for herein, and agrees that in connection
with any proceeding involving the Subordinated Borrower under any bankruptcy, insolvency, reorganization, arrangement, receivership
or similar law (i) the Collateral Agent is irrevocably authorized and empowered (in its own name or in the name of the Subordinated
Lender or otherwise), but shall have no obligation, to demand, sue for, collect and receive every payment or distribution referred
to in the preceding sentence and give acquittance therefor and to file claims and proofs of claim and take such other action (including,
without limitation, voting the Subordinated Obligations) as the Collateral Agent may deem necessary or advisable and (ii) the Subordinated
Lender shall duly and promptly take such action as the Collateral Agent may request to (A) collect amounts in respect of the Subordinated
Obligations for the account of the Secured Parties and to file appropriate claims or proofs of claim in respect of the Subordinated
Obligations, (B) execute and deliver to the Collateral Agent such irrevocable powers of attorney, assignments or other instruments
as the Collateral Agent may reasonably request in order to enable the Collateral Agent to enforce any and all claims with respect
to the Subordinated Obligations and (C) collect and receive any and all payments or distributions which may be payable or deliverable
upon or with respect to the Subordinated Obligations. A copy of this Agreement may be filed with any court as evidence of the Secured
Parties’ right, power and authority hereunder.

 

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(e) In the event that
any payment by, or on behalf of, or distribution of the assets of, the Subordinated Borrower of any kind or character, whether
in cash, securities or other property, and whether directly or by purchase, redemption, exercise of any right of setoff or otherwise,
shall be received by or on behalf of the Subordinated Lender or any Affiliate thereof at a time when such payment is prohibited
by this Agreement, such payment or distribution shall be held by the Subordinated Lender or Affiliate in trust (segregated from
other property of the Subordinated Lender or Affiliate) for the benefit of, and shall forthwith be paid over to, the Collateral
Agent until all Senior Obligations have been paid in full. The value of any payments or distributions in cash, property or other
assets received by the Subordinated Lender that are paid over to the Collateral Agent or any Secured Party pursuant to this Agreement
shall not reduce any of the Subordinated Obligations.

 

(f) Subject to the
prior payment in full of all Senior Obligations, the Subordinated Lender shall be subrogated to the rights of the Secured Parties
to receive payments or distributions in cash, securities or other property of the Subordinated Borrower until all amounts owing
on the Senior Obligations shall be paid in full, and, as between and among the Subordinated Borrower, its creditors (other than
the Secured Parties) and the Subordinated Lender, no such payment or distribution made to the Secured Parties by virtue of this
Agreement that otherwise would have been made to the Subordinated Lender shall be deemed to be a payment by the Subordinated Borrower
on account of the Subordinated Obligations, it being understood that the provisions of this Section 1(f) are intended solely
for the purpose of defining the relative rights of the Subordinated Lender and the Secured Parties.

 

(g) The Subordinated
Lender agrees that all the proceeds of any security for the Subordinated Obligations shall be subject to the provisions hereof
with respect to payments and other distributions in respect of the Subordinated Obligations.

 

(h) Notwithstanding
anything to the contrary contained in this Agreement, the Subordinated Lender agrees that, except for claims submitted in any
proceeding contemplated by Section 1(d) hereof, it will not take any action to cause any Subordinated Obligations to become
payable prior to their scheduled maturity or exercise any remedies or take any action or proceeding to enforce any Subordinated
Obligation until after the Senior Obligations have been paid in full, and the Subordinated Lender further agrees not to file,
or to join with any other creditors of the Subordinated Borrower in filing, any petition commencing any bankruptcy, insolvency,
reorganization, arrangement or receivership proceeding or any assignment for the benefit of creditors against or in respect of
the Subordinated Borrower or any other marshalling of the assets and liabilities of the Subordinated Borrower (provided
that this prohibition shall in no event be construed so as to limit the Subordinated Lender’s right to cause any Subordinated
Obligations to become payable prior to their scheduled maturity if all the Senior Obligations have been declared due and payable
prior to their respective scheduled maturity dates). The Subordinated Lender further agrees, to the fullest extent permitted under
applicable law, that it will not cause the Subordinated Borrower to file any such petition, commence any such proceeding or make
any such assignment referred to above until all Senior Obligations have been paid in full.

 

(i) The obligations
of the Subordinated Lender and the Subordinated Borrower hereunder shall be reinstated in the event that all or any part of any
payment to any Secured Party is rescinded or recovered directly or indirectly from any Secured Party as a preference, fraudulent
transfer or otherwise, and any such payments which are so rescinded or recovered shall constitute Senior Obligations for all purposes
under this Agreement.

 

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(j) The Parties acknowledge
that this Agreement is a “subordination agreement” under section 510(a) of Title 11 of the United States Code entitled
“Bankruptcy,” as now and hereafter in effect, or any successor statute (the “Bankruptcy Code”),
which will be effective before, during and after the commencement of an Insolvency or Liquidation Proceeding. All references in
this Agreement to the Subordinated Borrower will include the Subordinated Borrower as a debtor-in-possession and any receiver or
trustee for the Subordinated Borrower in an Insolvency or Liquidation Proceeding. For purposes of this Section 1(j), “Insolvency
or Liquidation Proceeding” shall mean:

 

(A) any voluntary or
involuntary case or proceeding under the Bankruptcy Code with respect to the Subordinated Borrower;

 

(B) any other voluntary
or involuntary insolvency, reorganization or bankruptcy case or proceeding, or any receivership, liquidation, reorganization or
other similar case or proceeding with respect to the Subordinated Borrower or with respect to a material portion of its assets;

 

(C) any liquidation,
dissolution, reorganization or winding up of the Subordinated Borrower whether voluntary or involuntary and whether or not involving
insolvency or bankruptcy; or

 

(D) any assignment
for the benefit of creditors or any other marshalling of assets and liabilities of the Subordinated Borrower.

 

SECTION 2. WAIVERS AND CONSENTS. 

 

(a) The Subordinated
Lender waives the right to compel that any assets or property of the Subordinated Borrower or the assets or property of any guarantor
of the Senior Obligations or any other person be applied in any particular order to discharge the Senior Obligations. The Subordinated
Lender expressly waives the right to require the Secured Parties to proceed against the Subordinated Borrower, any assets or property
securing the Senior Obligations or any guarantor of the Senior Obligations or any other person, or to pursue any other remedy in
any Secured Party’s power which the Subordinated Lender cannot pursue and which would lighten the Subordinated Lender’s
burden, notwithstanding that the failure of any Secured Party to do so may thereby prejudice the Subordinated Lender. The Subordinated
Lender agrees that it shall not be discharged, exonerated or have its obligations hereunder to the Secured Parties reduced by any
Secured Party’s delay in proceeding against or enforcing any remedy against the Subordinated Borrower, any assets or property
securing the Senior Obligations or any guarantor of the Senior Obligations or any other person; by any Secured Party releasing
the Subordinated Borrower, any assets or property securing the Senior Obligations or any other guarantor of the Senior Obligations
or any other person from all or any part of the Senior Obligations; or by the discharge of the Subordinated Borrower, any assets
or property securing the Senior Obligations or any guarantor of the Senior Obligations or any other person by an operation of law
or otherwise, with or without the intervention or omission of a Secured Party. Any Secured Party’s vote to accept or reject
any plan of reorganization relating to the Subordinated Borrower, any assets or property securing the Senior Obligations, or any
guarantor of the Senior Obligations or any other person, or any Secured Party’s receipt on account of the Senior Obligations
of any cash, securities or other property distributed in any bankruptcy, reorganization, or insolvency case, shall not discharge,
exonerate, or reduce the obligations of the Subordinated Lender hereunder to the Secured Parties until and unless the Senior Obligations
have been paid in full.

 

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(b) The Subordinated
Lender waives all rights and defenses arising out of an election of remedies by the Secured Parties, even though that election
of remedies, including, without limitation, any nonjudicial foreclosure with respect to security for the Senior Obligations, has
impaired the value of the Subordinated Lender’s rights of subrogation, reimbursement or contribution against the Subordinated
Borrower or any other guarantor of the Senior Obligations or any other person. The Subordinated Lender expressly waives any rights
or defenses it may have by reason of protection afforded to the Subordinated Borrower or any other guarantor of the Senior Obligations
or any other person with respect to the Senior Obligations pursuant to any anti-deficiency laws or other laws of similar import
which limit or discharge the principal debtor’s indebtedness upon judicial or nonjudicial foreclosure of any assets or property
securing the Senior Obligations.

 

(c) The Subordinated
Lender agrees that, without the necessity of any reservation of rights against it, and without notice to or further assent by it,
any demand for payment of any Senior Obligations made by a Secured Party may be rescinded in whole or in part by the Secured Party,
and any Senior Obligation may be continued, and the Senior Obligations, or the liability of the Subordinated Borrower or any other
guarantor or any other person upon or for any part thereof, or any assets or property securing the Senior Obligations or guarantee
therefor or right of offset with respect thereto, may, from time to time, in whole or in part, be renewed, extended, modified,
accelerated, compromised, waived, surrendered, or released by the Secured Parties, in each case without notice to or further assent
by the Subordinated Lender, which will remain bound under this Agreement and without impairing, abridging, releasing or affecting
the subordination and other agreements provided for herein.

 

(d) The Subordinated
Lender waives any and all notice of the creation, renewal, extension or accrual of any of the Senior Obligations and notice of
or proof of reliance by the Secured Parties upon this Agreement. The Senior Obligations, and any of them, and the consent given
to create the obligations of the Subordinated Borrower in respect of the Subordinated Obligations, shall be deemed conclusively
to have been created, contracted, incurred or given in reliance upon this Agreement, and all dealings between the Subordinated
Borrower and the Secured Parties shall be deemed to have been consummated in reliance upon this Agreement. The Subordinated Lender
acknowledges and agrees that the Secured Parties have relied upon the subordination and other agreements provided for herein in
consenting to the Subordinated Obligations. The Subordinated Lender waives notice of or proof of reliance on this Agreement and
protest, demand for payment and notice of default.

 

SECTION 3. TRANSFERS.  The Subordinated
Lender shall not sell, assign or otherwise transfer or dispose of, in whole or in part, all or any part of the Subordinated Obligations
or any interest therein to any other person (a “Transferee”) or create, incur or suffer to exist any security
interest, Lien, charge or other encumbrance whatsoever upon all or any part of the Subordinated Obligations or any interest therein
in favor of any Transferee.

 

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SECTION 4. SENIOR OBLIGATIONS UNCONDITIONAL. All rights
and interests of the Secured Parties hereunder, and all agreements and obligations of the Subordinated Lender and the Subordinated
Borrower hereunder, shall remain in full force and effect irrespective of:

 

(a)
any lack of validity or enforceability of the Financing Agreement or any other Loan Document (“Finance Document”);

 

(b) any change in the
time, manner or place of payment of, or in any other term of, all or any of the Senior Obligations, or any amendment or waiver
or other modification, whether by course of conduct or otherwise, of, or consent to departure from, the Financing Agreement or
any other Finance Document;

 

(c) any exchange, release
or nonperfection of any lien in any collateral;

 

(d) any refinancing,
replacement or substitution of the Senior Obligations or any portion thereof regardless of whether the terms and conditions thereof
are less beneficial to the Subordinated Borrower; or

 

(e) any other circumstances
that might otherwise constitute a defense available to, or a discharge of, the Subordinated Borrower in respect of the Senior Obligations,
or of the Subordinated Lender or the Subordinated Borrower in respect of this Agreement.

 

SECTION 5. REPRESENTATIONS AND WARRANTIES.
The Subordinated Lender represents and warrants to the Collateral Agent, for the benefit of the Secured Parties, that:

 

(a) It has the power
and authority to execute and deliver and to perform its obligations under this Agreement and has taken all necessary action to
authorize its execution, delivery and performance of this Agreement.

 

(b) This Agreement
has been duly executed and delivered by the Subordinated Lender and constitutes a legal, valid and binding obligation of the Subordinated
Lender, enforceable against it in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium
or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered
in a proceeding in equity or at law.

 

(c) The execution,
delivery and performance of this Agreement will not violate any provision (i) of any requirement of law applicable to the Subordinated
Lender or (ii) of any contractual obligation of the Subordinated Lender, except, in the case of clause (ii) only, where such violation
could not reasonably be expected to have a material adverse effect on the Subordinated Lender’s ability to perform its obligations
hereunder.

 

(d) No consent or
authorization or filing with, or other act by or in respect of, any governmental authority, is required in connection with the
execution, delivery or performance of this Agreement, except for those which have been obtained.

    7

     

    

  

SECTION 6. WAIVER OF CLAIMS. 

 

(a) To the maximum
extent permitted by law, the Subordinated Lender waives any claim it might have against any Secured Party with respect to, or arising
out of, any action or failure to act or any error of judgment, negligence, or mistake or oversight whatsoever on the part of any
Secured Party or its directors, officers, employees, agents or affiliates with respect to any exercise of rights or remedies under
the Finance Documents or any transaction relating to any assets or property securing the Senior Obligations. Neither the Secured
Parties nor any of their respective directors, officers, employees, agents or affiliates shall be liable for failure to demand,
collect or realize upon any assets or property securing the Senior Obligations or for any delay in doing so or shall be under any
obligation to sell or otherwise dispose of any assets or property securing the Senior Obligations upon the request of the Subordinated
Borrower or the Subordinated Lender or any other person or to take any other action whatsoever with regard to any documents relating
to any assets or property securing the Senior Obligations.

 

(b) The Subordinated
Lender, for itself and on behalf of its successors and assigns, hereby waives any and all now existing or hereafter arising rights
it may have to require the Secured Parties to marshal assets for the benefit of the Subordinated Lender, or to otherwise direct
the timing, order or manner of any sale, collection or other enforcement of any assets or property securing the Senior Obligations
or enforcement of the Finance Documents. The Secured Parties are under no duty or obligation, and the Subordinated Lender hereby
waives any right it may have to compel the Secured Parties, to pursue any guarantor or other person who may be liable for the Senior
Obligations, or to enforce any Lien or security interest in any assets or property securing the Senior Obligations.

 

(c) The Subordinated
Lender hereby waives and releases all rights which a guarantor or surety with respect to the Senior Obligations could exercise.

 

(d) The Subordinated
Lender hereby waives any duty on the part of the Secured Parties to disclose to it any fact known or hereafter known by the Secured
Parties relating to the operation or financial condition of the Subordinated Borrower or any guarantor of the Senior Obligations,
or their respective businesses. The Subordinated Lender enters into this Agreement based solely upon its independent knowledge
of the applicable Subordinated Borrower’s results of operations, condition (financial or otherwise) and business and the
Subordinated Lender assumes full responsibility for obtaining any further or future information with respect to the Subordinated
Borrower or its results of operations, condition (financial or otherwise) or business.

 

SECTION 7. FURTHER ASSURANCES. The
Subordinated Lender and the Subordinated Borrower, at the expense of the Subordinated Borrower and at any time from time to time,
upon the written request of the Collateral Agent shall promptly and duly execute and deliver such further instruments and documents
and take such further actions as the Collateral Agent reasonably may request for the purposes of obtaining or preserving the full
benefits of this Agreement and of the rights and powers herein granted.

 

    8

     

    

 

SECTION 8. EXPENSES; INDEMNIFICATION.

 

(a) The Subordinated
Borrower shall pay or reimburse the Collateral Agent and the Secured Parties, upon demand, for all their respective documented,
out-of-pocket costs and expenses in connection with the enforcement of any rights under this Agreement, including, without limitation,
fees and disbursements of counsel to the Collateral Agent and the Secured Parties.

 

(b) The Subordinated
Borrower shall and hereby agrees to, pay, indemnify, and hold the Collateral Agent and the Secured Parties harmless from and against
any and all other documented liabilities, obligations, losses, damages, penalties, actions (whether sounding in contract, tort
or on any other ground), judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the
failure of the Subordinated Borrower or any applicable Subordinated Lender to perform any of its obligations arising out of or
relating to this Agreement; provided that such indemnity shall not, as to any such indemnitee, be available to the extent
that such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements are
determined by a court of competent jurisdiction by final and nonappealable judgment to have resulted primarily from the gross negligence,
willful misconduct or bad faith of such indemnitee.

 

SECTION 9. PROVISIONS DEFINE RELATIVE
RIGHTS. This Agreement is intended solely for the purpose of defining the relative rights of the Secured Parties on the one
hand and the Subordinated Lender and the Subordinated Borrower on the other, and no other person shall have any right, benefit
or other interest under this Agreement.

 

SECTION 10. POWERS COUPLED WITH AN INTEREST.
All powers, authorizations and agencies contained in this Agreement are coupled with an interest and are irrevocable until the
Senior Obligations are paid in full.

 

SECTION 11. NOTICES. All notices,
requests and demands to or upon any party hereto shall be in writing and shall be given in the manner provided in the Financing
Agreement and, in the case of Subordinated Lender, to the address set forth below its signature hereto.

 

SECTION 12. COUNTERPARTS. This Agreement
may be executed by one or more of the parties on any number of separate counterparts, each of which shall be deemed an original,
but all of which taken together shall be deemed to constitute but one instrument. Delivery of an executed signature page to this
Agreement by facsimile transmission or electronic PDF delivery shall be as effective as delivery of a manually signed counterpart
of this Agreement.

 

SECTION 13. SEVERABILITY. In case
any one or more of the provisions contained in this Agreement should be held invalid, illegal or unenforceable in any respect,
the validity, legality and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired
thereby (it being understood that the invalidity of a particular provision hereof in a particular jurisdiction shall not in and
of itself affect the validity of such provision in any other jurisdiction). The parties hereto shall endeavor in good-faith negotiations
to replace the invalid, illegal or unenforceable provisions with valid provisions the economic effect of which comes as close as
possible to that of the invalid, illegal or unenforceable provisions.

 

    9

     

    

 

SECTION 14. INTEGRATION. This Agreement
represents the agreement of the Subordinated Borrower, the Subordinated Lender and the Secured Parties with respect to the subject
matter hereof and there are no promises or representations by the Subordinated Borrower, the Subordinated Lender or the Secured
Parties relative to the subject matter hereof not reflected herein.

 

SECTION 15. AMENDMENTS IN WRITING; NO
WAIVER; CUMULATIVE REMEDIES.

 

(a) None of the terms
or provisions of this Agreement may be waived, amended, supplemented or otherwise modified except by a written instrument executed
by the Collateral Agent, the Subordinated Borrower and the Subordinated Lender.

 

(b) No failure to exercise,
nor any delay in exercising, on the part of the Secured Parties, any right, power or privilege hereunder shall operate as a waiver
thereof. No single or partial exercise of any right, power or privilege hereunder shall preclude any other or further exercise
thereof or the exercise of any other right, power or privilege.

 

(c) The rights and
remedies herein provided are cumulative, may be exercised singly or concurrently and are not exclusive of any other rights or remedies
provided by law.

 

SECTION 16. SECTION HEADINGS. The
section headings used in this Agreement are for convenience of reference only and are not to affect the construction hereof or
be taken into consideration in the interpretation hereof.

 

SECTION 17. SUCCESSORS AND ASSIGNS.

 

(a) This Agreement
shall be binding upon the successors and assigns of each of the Subordinated Borrower and the Subordinated Lender and shall inure
to the benefit of the Secured Parties and their respective successors and assigns.

 

(b) Notwithstanding
the provisions of Section 17(a) above, nothing herein shall be construed to limit or relieve the obligations of the Subordinated
Lender pursuant to Section 3 of this Agreement, and the Subordinated Lender shall not assign its obligations hereunder to
any person; any such assignment shall be void.

 

SECTION 18. [RESERVED].

 

SECTION 19. [RESERVED].

 

    10

     

    

 

SECTION 20. Governing
Law. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HERETO HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD
TO THE CONFLICTS OF LAW PROVISIONS OF THE LAWS OF THE STATE OF NEW YORK, OTHER THAN SECTION 5-1401 and 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW); PROVIDED HOWEVER, THAT IF THE CREATION OR ATTACHMENT OF ANY SECURITY INTEREST IN ANY ITEM OF COLLATERAL
IS EXCLUDED FROM THE COVERAGE OF THE NEW YORK COMMERCIAL CODE OR THE SECURITY INTEREST IN ANY ITEM OF COLLATERAL CANNOT BE CREATED
OR ATTACHED UNDER THE NEW YORK COMMERCIAL CODE, THEN THE CREATION AND/OR ATTACHMENT OF THE SECURITY INTERESTS IN SUCH COLLATERAL
SHALL BE GOVERNED BY THE SECURED TRANSACTIONS STATUTE.

 

SECTION 21. [RESERVED].

  

SECTION 22. Consents
to Jurisdiction; Waivers of Venue.

 

(a) Consent to Jurisdiction.
THE PARTIES HERETO AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THIS AGREEMENT SHALL BE TRIED AND LITIGATED
ONLY IN THE COUNTY OF NEW YORK, STATE OF NEW YORK AND, TO THE EXTENT PERMITTED BY APPLICABLE LAW, FEDERAL COURTS LOCATED IN THE
COUNTY OF NEW YORK, STATE OF NEW YORK; PROVIDED, THAT ANY SUIT SEEKING ENFORCEMENT AGAINST ANY COLLATERAL OR OTHER PROPERTY MAY
BE BROUGHT, AT COLLATERAL AGENT’S OPTION, UPON INSTRUCTION OF THE REQUIRED LENDERS, IN THE COURTS OF ANY JURISDICTION WHERE
COLLATERAL AGENT, UPON INSTRUCTION OF THE REQUIRED LENDERS, ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY
MAY BE FOUND.

 

(b) Waiver of Venue.
EACH GRANTOR AND COLLATERAL AGENT WAIVE, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE
OF FORUM NON CONVENIENS OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS BROUGHT IN ACCORDANCE WITH THIS SECTION 22.

 

SECTION 23. Waiver
of Jury Trial. SUBORDINATED LENDER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY OTHER FINANCE DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER
THEORY). EACH OF THE SUBORDINATED BORROWER, THE SUBORDINATED LENDER (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PERSON HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PERSON WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
AND THE OTHER FINANCE DOCUMENTS BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 23.

 

[SIGNATURE PAGE FOLLOWS]

 

    11

     

    

 

IN WITNESS WHEREOF, the parties
hereto have caused this Agreement to be duly executed and delivered as of the day and year first above written.

 

	EVO Transportation & energy services, inC.,
	as Subordinated Borrower
	 	 
	By:	 /s/ Damon Cuzick	 
	Name: 	Damon Cuzick	 
	Title: 	President	 
	 	 
	By:	 /s/ Barbara Coy	 
	Name: 	Barbara Coy	 
	Title:	 Secretary	 

 

    12

     

    

 

	 	Danny R. Cuzick,
	 	as the Subordinated Lender
	 	 	 
	 	By:	/s/ Danny Cuzick
	 	Name:	Danny Cuzick
	 	Address: 	8285 West Lake Pleasant Parkway,

 Peoria, AZ 85382

 

    13

     

    

 

	 	[COLLATERAL AND/OR ADMINISTRATIVE ] AGENT:
	 	 
	 	CORTLAND CAPITAL MARKET SERVICES LLC
	 	 	 
	 	By:	/s/ Emily Ergang Pappas
	 	Name:	Emily Ergang Pappas
	 	Title:	Associate Counsel

 

 

14

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