Document:

EX-10.3

 Exhibit 10.3 

PLEDGE AND SECURITY AGREEMENT 

This Pledge and Security Agreement (this “Security Agreement”) is entered into as of October 17, 2017, by and
between Fifth Street Senior Floating Rate Corp., a Delaware corporation, as secured party (“Secured Party”), and Fifth Street Holdings L.P., a Delaware limited partnership, as Pledgor (“Pledgor”). 

Reference is made herein to that certain Asset Purchase Agreement, dated as of July 13, 2017 (as it may be amended from time to time, the
“Purchase Agreement”), by and among Fifth Street Management LLC (“Seller”), a Delaware limited liability company, Oaktree Capital Management, L.P., a Delaware limited partnership
(“Buyer”), and, solely for the purposes set forth therein, Fifth Street Asset Management Inc. and, solely for the purposes set forth therein, Pledgor. Capitalized terms used but not defined herein shall have the meanings
given such terms in the Purchase Agreement. 
 WHEREAS, Pledgor is the owner of shares of common stock, par value $0.01 per share
(“Shares”) issued by Fifth Street Senior Floating Rate Corp. (in its capacity as the issuer of the Shares, the “Issuer”); 

WHEREAS, Buyer and Pledgor have required, as a condition to the fulfillment of their obligations under the Purchase Agreement, that
Pledgor execute and deliver this Security Agreement and pledge to Secured Party, the Collateral Shares (as defined below); and 

WHEREAS, Pledgor agrees to grant a security interest in, and pledge and assign as applicable, the Collateral (as defined below) to
Secured Party, as herein provided. 
 NOW, THEREFORE, for valuable consideration, the receipt and sufficiency of which are hereby
acknowledged and agreed, the parties hereto agree to enter into this Security Agreement as follows: 
 1.    Security
Interest. For good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, Pledgor hereby pledges and grants to Secured Party a continuing first priority security interest in and lien on the Collateral to secure
the payment and the performance of the Secured Obligations (as defined below). 
 2.    Collateral. The security
interest granted hereunder to Secured Party is in all of Pledgor’s right, title and interest in and to, or otherwise with respect to, the following property and assets whether now owned or existing or hereafter acquired or arising and
regardless of where located (collectively, the “Collateral”): 
 (a)    (i)
1,131,991 Shares (or security entitlements in respect thereof) credited to the Collateral Account (the “Collateral Shares”); (ii) all dividends, shares, securities, cash, instruments, moneys or property (A) representing
a dividend, distribution or return of capital in respect of any of the Collateral Shares (including, without limitation, any regular, periodic dividend or any other dividend, issuance or distribution of cash, securities or property thereon (other
than in connection with a Split-off)) or other 

 
property described in this clause (a), (B) resulting from a split-up (including, without limitation, a Split-off),
revision, reclassification, recapitalization or other similar change with respect to any of the Collateral Shares or other property described in this clause (a), (C) otherwise received in exchange for or converted from any of the Collateral Shares
or other property described in this definition and any subscription warrants, rights or options issued to the holders of, or otherwise in respect of, any of the Collateral Shares or other property described in this clause (a) or (D) resulting
from a Spin-off; and (iii) in the event of any merger with respect to the Issuer in which the Issuer is not the surviving entity, all shares of each class of the capital stock of the successor entity
formed by or resulting from such event and any other consideration that is exchanged for the Collateral Shares that consist of Collateral Shares of such Issuer or into which such Collateral Shares are converted; 

(b)     (i) the Collateral Account (as defined below); (ii) any cash, cash equivalents, securities
(including the Collateral Shares and any other Shares), general intangibles, investment property, financial assets, and other property that may from time to time be deposited, credited, held or carried in the Collateral Account or that is delivered
to or in possession or control of Secured Party or any of Secured Party’s agents pursuant to this Security Agreement or the Purchase Agreement; (iii) all security entitlements as defined in
§8-102(a)(17) of the UCC (as defined below) with respect to any of the foregoing; (iv) all income and profits on any of the foregoing and all dividends, distributions, interest and other payments
with respect to any of the foregoing; (v) all other rights and privileges appurtenant to any of the foregoing, including any voting rights and any redemption rights, and (vi) any substitutions for any of the foregoing, in each case whether
now existing or hereafter arising; and 
 (c)    all Proceeds (as defined below) of the Collateral
described in the foregoing clauses (a) and (b). 
 The security interest granted hereunder is granted as security only and shall not
subject Secured Party to, or transfer or in any way affect or modify, any obligation or liability of Pledgor with respect to any of the Collateral or any transaction in connection therewith. 

As used herein, the following terms shall have the following meanings: 

“Collateral Account” means that certain securities account No. 877-013754-789 of Pledgor established and maintained at Morgan Stanley Smith Barney LLC, including any subaccount, substitute, successor or replacement securities or deposit account in or to which
any Collateral is now or hereafter held or credited. Any renumbering of the Collateral Account shall not limit the rights of Secured Party hereunder, and, to the extent necessary, such renumbering shall be automatically incorporated into the
definition of Collateral Account. 
 “Proceeds” means all proceeds (as defined in the UCC) and, to the extent not
included in such term, all proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange, assignment, or other disposition of, or other realization upon, any Collateral. 

  
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 “Spin-off” means any
distribution, issuance or dividend to holders of Shares of any capital stock or other securities of another issuer owned (directly or indirectly) by the Issuer or any subsidiary thereof. 

“Split-off” means any exchange offer by the Issuer for its own shares in which
the consideration to be delivered to exchanging holders of such shares is capital stock or other securities of another issuer owned (directly or indirectly) by the Issuer. 

“UCC” means the Uniform Commercial Code as in effect from time to time in the State of New York or any other state the
laws of which are required to be applied in connection with the issue of perfection of security interests. 

3.    Collateral Maintenance and Administration. 

(a)    The parties hereto agree that at all times prior to an exercise of remedies hereunder, Pledgor shall
be treated as the owner of the Collateral for U.S. Federal and state tax purposes. 
 (b)    Unless an
Indemnification Trigger Event (as defined below) has occurred and is continuing, subject to the Standstill (as defined below), (i) Secured Party shall not have the right to rehypothecate, use, borrow, lend, pledge or sell the Collateral Shares or
give any entitlement orders or instructions with respect to the Collateral, except with Pledgor’s consent, and (ii) subject to the FSFR Voting Agreement, Pledgor shall retain all voting rights with respect the Collateral Shares. 

As used herein, an “Indemnification Trigger Event” means the occurrence and continuation of any of the following:
(x) the incurrence of BDC Existing Investigation Defense Costs in excess of the amount in the BDC Escrow Fund as of the date thereof (less the sum of the aggregate amount of any Outstanding BDC Claims), or (y) the incurrence of BDC Net
Losses by the FSFR Indemnified Parties (the amount of any such incurrence, an “Indemnifiable Loss”) that are indemnifiable by Seller and FSH pursuant to Article VIII of the Purchase Agreement (including, without
limitation, that such BDC Existing Investigation Defense Costs and BDC Net Losses are finally determined pursuant to Section 8.4 of the Purchase Agreement). 

4.    Secured Obligations. All obligations of Pledgor to indemnify the FSFR Indemnified Parties for the incurrence
of BDC Existing Investigation Defense Costs that cannot be satisfied by the BDC Escrow Fund and BDC Net Losses, in each case pursuant to Article VIII of the Purchase Agreement (collectively, the “Secured Obligations”), are
secured by this Security Agreement. 

  
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 5.    Pledgor’s Representations and
Warranties.    Pledgor hereby represents and warrants to Secured Party that: 

(a)    Pledgor (i) is duly organized and validly existing in good standing as a limited partnership or
other legal entity under the laws of the State of Delaware; (b) has full limited partnership or other legal power and authority to carry on its business as it is now being conducted and to own, lease and operate its properties and assets as
currently owned, leased or operated in connection with its business; and (c) is duly qualified to do business and in good standing as a foreign or alien Person, as the case may be, in each jurisdiction in which the conduct of its business or
the ownership, leasing or operation of its properties or assets makes such qualification necessary, except where the failure to be so qualified, would not, individually or in the aggregate, reasonably be likely to have a Material Adverse Effect.

 (b)    Pledgor has full legal power and authority to execute and to deliver this Security Agreement,
and to consummate the transactions contemplated hereby. Pledgor has taken all necessary limited partnership action to authorize the execution and performance of this Security Agreement by it. This Security Agreement has been duly executed and
delivered by Pledgor and, assuming due authorization, execution and delivery of this Agreement by Secured Party, is the valid and binding obligation of Pledgor, enforceable against Pledgor in accordance with its terms subject to the Enforceability
Exceptions. 
 (c)    No consent, approval or authorization of, or filing with, any Governmental Entity
is required to be made or obtained by Pledgor or any of its affiliates in connection with the execution, delivery and performance of this Security Agreement or the consummation of the transactions contemplated hereby. 

(d)    Pledgor is not, and after giving effect to the asset sale contemplated by the Purchase Agreement
will not be, required to register as an “investment company” under the Investment Company Act. 

(e)    Pledgor owns all of the Collateral credited to the Collateral Account free and clear of liens. 

(f)    The security interest in the Collateral granted to Secured Party by the Pledgor pursuant to this
Security Agreement is a valid and binding security interest in the Collateral (subject to no other liens). 

(g)    Subject to the execution of a Control Agreement (as defined below) with respect to the Collateral
Account by the parties thereto, (i) the security interest created in favor of Secured Party in the Collateral Account and the security entitlements in respect of the Collateral Shares and other financial assets credited thereto will constitute
a perfected first priority security interest securing the Secured Obligations, (ii) Secured Party will have control (within the meaning of Sections 8-106 and 9-106
of the UCC) 

  
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thereof, (iii) Pledgor does not have notice of any adverse claims with respect to any such security entitlement or such financial assets and (iv) to the extent Section 9-510(a) of the UCC is applicable and assuming Secured Party has no notice of any adverse claims with respect to any such security entitlements or such financial assets, no action based on an adverse
claim to such security entitlement or such financial asset, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may be asserted against Secured Party. 

(h)    With respect to all Collateral that may be perfected by filing a financing statement pursuant to the
UCC, when a UCC financing statement in the form of Exhibit A hereto is filed in the appropriate office against Pledgor in the location listed on Schedule 1 (naming Pledgor as the debtor and Secured Party as the secured party), Secured Party will
have a valid and perfected first priority security interest in such Collateral as security for the payment and performance of the Secured Obligations. 

(i)    The Collateral Shares are not subject to any transfer restrictions, other than those set forth in
the FSFR Voting Agreement. 
 (j)    Pledgor has been advised by counsel in the negotiation, execution
and delivery of this Security Agreement. 
 6.    Pledgor’s Covenants. During the term of this Security
Agreement: 
 (a)    Pledgor shall use all commercially reasonable efforts to defend the Collateral
against all claims and demands of all persons at any time claiming any interest therein adverse to Secured Party. Pledgor shall not, at any time, file or suffer to be on file, or authorize to be filed or to be on file, in any jurisdiction, any
financing statement or like instrument with respect to the Collateral in which Secured Party is not named as the sole secured party. 

(b)    Whether the Collateral is or is not in Secured Party’s possession, and without any obligation
to do so and without waiving Pledgor’s default for failure to make any such payment, Secured Party at its option may, following notice to Pledgor when it may reasonably do so without prejudice, pay any such costs and expenses and discharge
encumbrances on the Collateral, and any payments of such costs and expenses and any payments to discharge such encumbrances shall be a part of the Secured Obligations. Pledgor agrees to reimburse Secured Party on demand for any payments of such
costs and expenses and any payments to discharge such encumbrances. 
 (c)    Pledgor shall take such
other actions as Secured Party shall reasonably determine is necessary or appropriate to perfect and duly record the Lien created under this Security Agreement in the Collateral, including executing, delivering, filing and/or recording, in such
locations and jurisdictions as Secured Party shall reasonably specify, any financing statement, register of mortgages and charges, notice, instrument, document, agreement or other papers that may be necessary or desirable (in the reasonable judgment

  
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of Secured Party) to create, preserve or perfect the security interest granted pursuant hereto and the priority thereof or to enable Secured Party to exercise and enforce its rights under this
Security Agreement with respect to such security interest, including, without limitation, executing and delivering or causing the execution and delivery of a control agreement substantially in the form of Exhibit B hereto (with such modifications
thereto as may be reasonably requested by the securities intermediary thereunder), granting Secured Party control of the Collateral Account (the “Control Agreement”). In the event the securities intermediary under the Control
Agreement terminates the Control Agreement, Secured Party shall not deliver any instructions regarding a successor securities intermediary pursuant to Section 10 of the Control Agreement unless Pledgor agrees in writing that such instructions
may be delivered; provided that if, after 20 days following notice of such termination by the Securities Intermediary, Secured Party and Pledgor do not agree on such instructions regarding a successor securities intermediary, the Secured
Party may provide the instructions regarding the delivery of the Collateral to a successor securities intermediary (provided such successor securities intermediary shall be Bank of New York Mellon, Deutsche Bank Trust Company Americas, Wells
Fargo Capital Finance, LLC, Brown Brothers Harriman & Co. or U.S. Bank). 
 (d)    Without at
least ten (10) days’ prior written notice to Secured Party, Pledgor shall not make any change to Pledgor’s name, or the name under which Pledgor does business, or the form or jurisdiction of Pledgor’s organization from the name,
form and jurisdiction set forth on the first page of this Security Agreement. 
 (e)    Pledgor shall not
(and shall not enter into any agreement to) (i) close the Collateral Account or (ii) sell, transfer, pledge or otherwise dispose of any Collateral without (x) obtaining the prior written consent of Secured Party and (y) entering
into such agreements as Secured Party may in its sole discretion require to ensure the continued priority and perfection of its lien on such Collateral; provided that notwithstanding the foregoing, but subject in each case to Section 2.03 of
the FSFR Voting Agreement, (A) Pledgor shall be entitled to sell or otherwise dispose of the Collateral Shares provided that the proceeds of such sale or disposition are deposited directly to and remain in the Collateral Account and are not
reinvested except in US treasuries that would mature in two years or less and (B) Pledgor shall be entitled to withdraw dividends and interest paid on Collateral Shares so long as, as of the date of such release, (i) the amount withdrawn
does not exceed the aggregate amount of dividends and interest on the Collateral deposited into the Collateral Account and not previously withdrawn and (ii) Pledgor has no actual knowledge that the FSFR Indemnified Parties will (x) suffer
any BDC Existing Investigation Defense Costs in excess of the amount in the BDC Escrow Fund as of the date thereof (less the sum of the aggregate amount, if any, of any Outstanding BDC Claims) and/or (y) suffer a BDC Net Loss, in each
case that is indemnifiable pursuant to Article VIII of the Purchase Agreement and in an amount that exceeds the aggregate value of the FSFR Collateral Shares (as calculated using the average closing price of such FSFR Shares over the five
(5) business days prior to the date of such contemplated release). Secured Party agrees to use commercially reasonable efforts to cooperate with the Pledgor, including providing any instruction reasonably required by the Securities

  
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Intermediary (as defined in the Control Agreement), to effect any permitted withdrawal of cash or Collateral Shares pursuant to this Section 6(e). On each date that Pledgor delivers a
Withdrawal Notice (as defined in the Control Agreement) to the Securities Intermediary to effect any permitted withdrawal of dividends or interest pursuant to this Section 6(e), Pledgor shall (x) be deemed to have represented and warranted
to Secured Party that (i) the amount requested to be transferred thereby does not exceed the aggregate amount of dividends and interest on the Collateral deposited into the Account and not previously withdrawn and (ii) it has no actual
knowledge that the Secured Party will suffer a BDC Net Loss that is indemnifiable pursuant to Article VIII of the Purchase Agreement in an amount that exceeds the aggregate value of the Collateral (as calculated, in the case of the shares of Fifth
Street Senior Floating Rate Corp., using the average closing price of such Collateral over the five (5) Business Days prior to the date of such Withdrawal Notice) and (y) concurrently deliver a copy of such Withdrawal Notice to Secured
Party. 
 7.    [Reserved]. 

8.    Power of Attorney. Pledgor, in such capacity, hereby irrevocably constitutes and appoints Secured Party and
any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority, in the name of Pledgor
or in its own name, to take upon the occurrence and during the continuance of an Indemnification Trigger Event (but subject to the Standstill), any and all action and to execute any and all documents and instruments that Secured Party at any time
and from time to time deems necessary or desirable to accomplish the purposes of this Security Agreement, including, without limitation, selling any of the Collateral on behalf of Pledgor as agent or attorney in fact for Pledgor, in the name of
Pledgor and applying the proceeds received therefrom in fulfillment of the Secured Obligations (it being understood that such actions may only be taken with respect to the Collateral necessary to repay the Secured Obligations then due and owing);
provided that nothing in this Section 8 shall be construed to obligate Secured Party to take any action hereunder nor shall Secured Party be liable to Pledgor for failure to take any action hereunder. This appointment shall be
deemed a power coupled with an interest, is irrevocable, and shall continue until the Specified Survival Date. Without limiting the generality of the foregoing, so long as Secured Party shall be entitled under Section 9 to make collections in
respect of the Collateral, Secured Party shall have the right and power to receive, endorse and collect all checks made payable to the order of Pledgor representing any dividend, payment or other distribution in respect of the Collateral or any part
thereof and to give full discharge for the same. 
 9.    Remedies. 

(a)    Upon the occurrence and during the continuance of an Indemnification Trigger Event (but subject to
the Standstill), Secured Party may (1) deliver a Notice of Exclusive Control (as defined in the Control Agreement) and (2) take any of the following actions: provide any entitlement orders relating to the Collateral Account (including,
without limitation, to effect the transfer of any Collateral from the Collateral Account); provided that Secured Party agrees that it will concurrently deliver such 

  
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entitlement orders to Pledgor; take control of proceeds, including stock received as dividends or by reason of stock splits; release the Collateral in its possession to Pledgor, temporarily or
otherwise; take control of funds generated by the Collateral, such as cash dividends, interest and proceeds, and use the same to reduce any part of the Secured Obligations and exercise all other rights that an owner of such Collateral may exercise;
and at any time transfer any of the Collateral or evidence thereof into its own name or that of its nominee (such actions described in this sub-clause (2) collectively, the “Foreclosure
Actions”); provided that Secured Party agrees (i) not to take any Foreclosure Action until (x) the second (2nd) Business Day after the date of such Indemnification Trigger
Event, if Pledgor notifies Secured Party of its intention to apply cash from the Collateral Account to satisfy the Indemnifiable Loss and/or (y) the tenth (10th) Business Day after such
Indemnification Trigger Event if the action to be taken is with respect to any of the Collateral other than cash (such period, the “Standstill”) and (ii) that such Foreclosure Actions may only be taken with respect to
the Collateral necessary to repay the Secured Obligations then due and owing. Secured Party agrees to use commercially reasonable efforts to cooperate with the Pledgor, including providing any instruction reasonably required by the Securities
Intermediary, to effect any withdrawal of Collateral in connection with the provisions of the Standstill described above. Secured Party shall not be liable for failure to collect any account or instruments, or for any act or omission on the part of
Secured Party, its officers, agents or employees, except for any act or omission arising out of their own willful misconduct, gross negligence or fraud. The foregoing rights and powers of Secured Party will be in addition to, and not a limitation
upon, any rights and powers of Secured Party or Buyer, as applicable, given by law, elsewhere in this Security Agreement, the Purchase Agreement or otherwise, subject in each case to the Standstill and the terms of the Purchase Agreement.
Notwithstanding anything to the contrary contained herein or in the Control Agreement, Secured Party agrees to withdraw any cash or liquid securities (other than, for the avoidance of doubt, the Collateral Shares) held in the Collateral Account
prior to withdrawing any other Collateral. 
 (b)    In addition to and not in lieu of the rights set
forth in Section 9(a), upon the occurrence and during the continuance of an Indemnification Trigger Event (but subject to the Standstill), Secured Party may, without notice of any kind, which Pledgor hereby expressly waives (except for any
notice required under this Security Agreement or the Purchase Agreement or any notice that may not be waived under applicable law), at any time thereafter exercise and/or enforce any of the following rights and the remedies, at Secured Party’s
option: 
 (i)    Deliver or cause to be delivered from the Collateral Account to itself or to an
Affiliate, Collateral Shares (or security entitlements in respect thereof) and any other Collateral; 

(ii)    Demand, sue for, collect or receive any money or property at any time payable or receivable on
account of or in exchange for any of the Collateral, and otherwise exercise all of Pledgor’s rights with respect to any and all of the Collateral, in its own name, in the name of Pledgor or otherwise; provided that Secured Party shall
have no obligation to take any of the foregoing actions; and 

  
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 (iii)    Sell, lease, assign or otherwise dispose of all or
any part of the Collateral, at such place or places and at such time or times as Secured Party deems best, and for cash or for credit or for future delivery (without thereby assuming any credit risk), at public or private sale, upon such terms and
conditions as it deems advisable, without demand of performance or notice of intention to effect any such disposition or of the time or place thereof (except such notice as is required by applicable law and cannot be waived), and Secured Party may
be the purchaser, lessee, assignee or recipient of any or all of the Collateral so disposed of at any public sale or at one or more private sales and thereafter hold the same absolutely, free from any claim or right of whatsoever kind, including any
right or equity of redemption (statutory or otherwise), of Pledgor. Secured Party may, without notice or publication, adjourn any public or private sale or cause the same to be adjourned from time to time by announcement at the time and place fixed
for the sale, and such sale may be made at any time or place to which the sale may be so adjourned, 
 in each case of the foregoing clauses
(i), (ii) and (iii), it being understood that such actions may only be taken with respect to the Collateral necessary to repay the Secured Obligations then due and owing. 

(c)    Pledgor specifically understands and agrees that any sale by Secured Party of all or part of the
Collateral pursuant to the terms of this Security Agreement may be effected by Secured Party at times and in manners that could result in the proceeds of such sale being significantly and materially less than might have been received if such sale
had occurred at different times or in different manners, and Pledgor hereby releases Secured Party and its officers and representatives from and against any and all obligations and liabilities arising out of or related to the timing or manner of any
such sale, to the extent permitted under applicable law. Without limiting the generality of the foregoing, if, in the reasonable opinion of Secured Party, there is any question that a public sale or distribution of any Collateral will violate any
state or federal securities law, including without limitation, the Securities Act, Secured Party may offer and sell such Collateral in a transaction exempt from registration under the Securities Act and/or who will agree, among other things, to
acquire the Collateral for their own account, for investment and not with a view to the distribution or resale thereof, and any such sale made in good faith by Secured Party shall be deemed “commercially reasonable”. Furthermore, Pledgor
acknowledges that any such restricted or private sales may be at prices and on terms less favorable to Pledgor than those obtainable through a public sale without such restrictions, and agrees such sales shall not be considered to be not
commercially reasonable solely because they are so conducted on a restricted or private basis. Pledgor further acknowledges that any specific disclaimer of any warranty of title or the like by Secured Party will not be considered to adversely affect
the commercial reasonableness of any sale of Collateral. The parties agree and acknowledge that the foregoing actions described in this Section 9(c) may only be taken with respect to the Collateral necessary to repay the Secured Obligations
then due and owing. 

  
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 (d)    If the proceeds of sale, collection or other
realization of or upon the Collateral pursuant to this Section 9 are insufficient to cover the costs and expenses of such sale, collection or realization and the payment in full of the Secured Obligations, Secured Party may continue to enforce
its remedies under this Security Agreement and the Purchase Agreement to collect the deficiency, subject in all cases to the terms of the Purchase Agreement. 

(e)    Secured Party’s duty of care with respect to Collateral in its possession (as imposed by law)
shall be deemed fulfilled if it exercises reasonable care in physically safekeeping such Collateral or, in the case of Collateral in the custody or possession of a bailee or other third Person, exercises reasonable care in the selection of the
bailee or other third Person, and Secured Party need not otherwise preserve, protect, insure or care for any Collateral. Secured Party shall not be obligated to preserve any rights Pledgor may have against prior parties, to realize on the Collateral
at all or in any particular manner or order, or to apply any cash proceeds of Collateral in any particular order of application. 

(f)    If Secured Party shall determine to exercise its right to sell all or any portion of the Collateral
pursuant to this Section 9, Pledgor agrees that, upon the reasonable request of Secured Party, Pledgor will, at its own expense: 

(i)    execute and deliver, to any Person or Governmental Authority, as Secured Party may choose, any and
all documents and writings that, in Secured Party’s reasonable judgment, may be required by any Governmental Entity located in any city, county, state or country where Pledgor or any Issuer engages in business in order to permit the transfer
of, or to more effectively or efficiently transfer, the Collateral or otherwise enforce Secured Party’s rights hereunder; and 

(ii)    do or cause to be done all such other acts and things as may be necessary to make such sale of the
Collateral or any part thereof valid and binding and in compliance with applicable law. 
 (g)    Except
as otherwise expressly provided in this Security Agreement, the proceeds of any collection, sale or other realization of all or any part of the Collateral pursuant hereto, and any other cash held by Secured Party as Collateral, following the
occurrence, and during the continuance, of an Indemnification Trigger Event (but subject to the Standstill) shall be applied by Secured Party to fulfill the Secured Obligations. 

(h)    Pledgor acknowledges that there is no adequate remedy at law for failure by it to comply with the
provisions of this Section 9 and that such failure would not be adequately compensable in damages, and therefore agrees that its agreements contained in this Section 9 may be specifically enforced. 

  
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 10.    General. 

(a)    Successors and Assigns. The provisions of this Security Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and assigns, except that Pledgor may not assign or otherwise transfer any of its rights or obligations hereunder or the Purchase Agreement without the prior written consent
of Secured Party (and any attempted assignment or transfer by Pledgor without such consent shall be null and void). 

(b)    No Waiver. No failure or delay by Secured Party or Buyer, as applicable, in exercising any
right or power hereunder or under the Purchase Agreement shall operate as a waiver thereof, nor shall any single or partial exercise of any such right or power, or any abandonment or discontinuance of steps to enforce such a right or power, preclude
any other or further exercise thereof or the exercise of any other right or power. The rights and remedies of Secured Party and Buyer, as applicable, hereunder and under the Purchase Agreement are cumulative and are not exclusive of any rights or
remedies that it would otherwise have. No notice to or demand on Pledgor in any case shall entitle Pledgor to any other or further notice or demand in similar or other circumstances or constitute a waiver of the rights of Secured Party to any other
or further action in any circumstances without notice or demand. 
 (c)    Continuing Agreement;
Release of Collateral. This Security Agreement shall constitute a continuing agreement and shall continue in effect until the Specified Survival Date, at which time the Collateral shall automatically be released from the Liens created hereby,
and this Security Agreement and all obligations (other than those expressly stated to survive such termination) of Secured Party and Pledgor hereunder shall terminate, all without delivery of any instrument or performance of any act by any party,
and all rights to the Collateral shall revert to Pledgor; provided that Secured Party shall deliver a notice pursuant to the Section 10 of the Control Agreement to the Securities Intermediary terminating the Control Agreement. At the request
and sole expense of Pledgor following any such termination, Secured Party shall deliver to Pledgor any Collateral held by Secured Party hereunder, and execute and deliver to Pledgor such documents as Pledgor shall reasonably request to evidence such
termination, including notice to any securities intermediary terminating the Control Agreement and authorization of the filing of any UCC-3 financing statements. No Collateral shall be released prior to the
Specified Survival Date except as otherwise expressly provided hereunder or under the Control Agreement or otherwise agreed to by Secured Party. Notwithstanding the foregoing, if at any time, any payment in respect of the Secured Obligations is
rescinded or must be otherwise restored by any holder of any of the Secured Obligations, whether as a result of any proceedings in insolvency, bankruptcy or reorganization or otherwise, the rights and obligations of the parties hereunder, and the
liens of Secured Party on the Collateral, shall be automatically reinstated and Pledgor 

  
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shall promptly deliver any documentation reasonably requested by Secured Party to evidence such reinstatement. This Section 10(c) shall survive the termination of this Security Agreement.

 (d)    Definitions. Unless the context indicates otherwise, definitions in the UCC apply to
words and phrases in this Security Agreement; if UCC definitions conflict, Article 8 and/or 9 definitions apply. 

(e)    Notice. Each notice to, or other communication with, any party hereunder shall be given to
such party as follows: 
 if to Secured Party, to: 

Oaktree Strategic Income Corporation 

333 South Grand Avenue, 28th floor 

Los Angeles, CA 90071 
 Tel: (213)
830-6300 
 Fax: (213) 830-6293 

Attention (email): Mathew Pendo (mpendo@oaktreecapital.com) 

with a copy (which shall not constitute notice hereunder and may be transmitted by email) to: 

Oaktree Capital Management, L.P. 

333 South Grand Avenue, 28th floor 

Los Angeles, CA 90071 
 Tel: (213)
830-6300 
 Fax: (213) 830-6293 

Attention (email): Mathew Pendo (mpendo@oaktreecapital.com) 

Simpson Thacher & Bartlett LLP 

425 Lexington Avenue 
 New York,
NY 10017 
 Fax: (212) 455-2502 

Attention (email): Gary I. Horowitz (ghorowitz@stblaw.com) 

and 
 Simpson Thacher &
Bartlett LLP 
 900 G Street, NW 

Washington, DC 20001 
 Fax: (202) 636-5502 
 Attention (email): Rajib Chanda (rajib.chanda@stblaw.com) 

if to Pledgor, to: 

  
 12 

 Fifth Street Holdings L.P. 

777 West Putnam Avenue, 3rd Floor 

Greenwich, CT 06830 
 Tel: (203) 681-6800 
 Fax: (203) 681-3879 

Attention: Bernard D. Berman (Bernie@fifthstreetfinance.com) 

with a copy (which shall not constitute notice hereunder and may be transmitted by email) to: 

Skadden, Arps, Slate, Meagher & Flom LLP 

Four Times Square 
 New York, NY
10036 
 Fax: (212) 735-2000 

					
		 	Attention (email):	 	Todd E. Freed (Todd.Freed@skadden.com)
		 		 	Jon A. Hlafter (Jon.Hlafter@skadden.com)

 Each notice, request or other communications given to any party hereunder shall be in writing
and be deemed given and received (a) if delivered in person, on the date delivered, (b) if transmitted by facsimile (provided receipt is confirmed by telephone), on the date sent, (c) if delivered by an express courier, on the
second (2nd) business day after mailing and (d) if transmitted by email, on the date sent, in each case, to the parties at the following addresses (or at such other address for a party as is
specified to the other parties hereto by like notice). 
 (f)    Modifications. This Security
Agreement may not be amended, altered or modified except by written instrument executed by each of the parties hereto. The provisions of this Security Agreement shall not be modified or limited by course of conduct or usage of trade. 

(g)    Financing Statement. Pledgor hereby irrevocably authorizes Secured Party (or its designee) at
any time and from time to time to file in any jurisdiction any financing or continuation statement and amendment thereto or any registration of charge, mortgage or otherwise, containing any information required under the UCC or the law of any other
applicable jurisdiction (in each case without the signature of Pledgor to the extent permitted by applicable law), necessary or appropriate in the judgment of Secured Party to perfect or evidence its security interest in and lien on the Collateral
which describes the Collateral as set forth on Exhibit A hereto. Pledgor agrees to provide to Secured Party (or its designees) any and all information required under the UCC or the law of any other applicable jurisdiction for the effective filing of
a financing statement and/or any amendment thereto or any registration of charge, mortgage or otherwise. 

(h)    Counterparts; Integration; Effectiveness. This Security Agreement may be executed in
counterparts (and by different parties hereto on different counterparts), each 

  
 13 

 
of which shall constitute an original, but all of which when taken together shall constitute a single contract. This Security Agreement, the Purchase Agreement, the Control Agreement and the FSFR
Voting Agreement constitute the entire contract among the parties relating to the subject matter hereof and thereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof and thereof.
This Security Agreement shall become effective when it shall have been executed by Secured Party and when Secured Party shall have received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto, and
thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns. Delivery of an executed counterpart of a signature page of this Security Agreement by facsimile or electronic transmission
shall be effective as delivery of an original executed counterpart of such signature page. 

(i)    Severability. Any provision of this Security Agreement or the Purchase Agreement held to be
invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining
provisions thereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction. 

(j)    Conflicts. In the event of any conflict between the provisions of this Security Agreement and
the provisions of the Purchase Agreement, the provisions of the Purchase Agreement shall govern and control. 

(k)    Governing Law; Submission to Jurisdiction. The provisions of Sections 10.9 and 10.10 of the
Purchase Agreement shall apply mutatis mutandis to this Security Agreement as if such provisions were fully set forth herein. 

[Signature Page Follows] 

  
 14 

 IN WITNESS WHEREOF, the parties hereto have caused this Security Agreement to be duly executed by
their duly authorized representatives as of the date first above written. 
 PLEDGOR: 

FIFTH STREET HOLDINGS L.P. 
  

			
	By:	 	 /s/ Leonard Tannenbaum

	Name:	 	Leonard Tannenbaum
	Title:	 	Chief Executive Officer

 [Signature Page to Security Agreement] 

 SECURED PARTY: 

FIFTH STREET SENIOR FLOATING RATE CORP. 
  

			
	By:	 	 /s/ Bernard Berman

	Name:	 	Bernard Berman
	Title:	 	Chief Executive Officer

 [Signature Page to Security Agreement] 

 Schedule 1 

UCC Filing Location 
 1. Delaware 

 Exhibit A 

Form of UCC Financing Statement 

Schedule I 
 To UCC Financing
Statement 
  

	Debtor:	Fifth Street Holdings L.P. 

 777 West Putnam Avenue, 3rd Floor 

Greenwich, CT 06830 
 Tel: (203)
681-6800 
 Fax: (203) 681-3879 

Attention (email): Bernard D. Berman 

(Bernie@fifthstreetfinance.com) 
  

	Secured Party:    	Oaktree Strategic Income Corporation 

 333 South Grand Avenue, 28th floor 

Los Angeles, CA 90071 
 Tel:
(213) 830-6300 
 Fax: (213) 830-6293 

Attention (email): Mathew Pendo 

(mpendo@oaktreecapital.com) 

This financing statement covers all of Debtor’s right, title and interest in and to, or otherwise with respect to, the following property
and assets whether now owned or existing or hereafter acquired or arising and regardless of where located (collectively, the “Collateral”): 

(a)    (i) 1,131,991 Shares (or security entitlements in respect thereof) credited to the Collateral
Account (the “Collateral Shares”); (ii) all dividends, shares, securities, cash, instruments, moneys or property (A) representing a dividend, distribution or return of capital in respect of any of the Collateral Shares
(including, without limitation, any regular, periodic dividend or any other dividend, issuance or distribution of cash, securities or property thereon (other than in connection with a Split-off)) or other
property described in this clause (a), (B) resulting from a split-up (including, without limitation, a Split-off), revision, reclassification, recapitalization or other
similar change with respect to any of the Collateral Shares or other property described in this clause (a), (C) otherwise received in exchange for or converted from any of the Collateral Shares or other property described in this definition and any
subscription warrants, rights or options issued to the holders of, or otherwise in respect of, any of the Collateral Shares or other property described in this clause (a) or (D) resulting from a Spin-off;
and (iii) in the event of any merger with respect to the Issuer in which the Issuer is not the surviving entity, all 

 
shares of each class of the capital stock of the successor entity formed by or resulting from such event and any other consideration that is exchanged for the Collateral Shares that consist of
Collateral Shares of such Issuer or into which such Collateral Shares are converted; 
 (b)     (i) the
Collateral Account (as defined below); (ii) any cash, cash equivalents, securities (including the Collateral Shares and any other Shares), general intangibles, investment property, financial assets, and other property that may from time to time be
deposited, credited, held or carried in the Collateral Account or that is delivered to or in possession or control of Secured Party or any of Secured Party’s agents pursuant to this Security Agreement or the Purchase Agreement; (iii) all
security entitlements as defined in §8-102(a)(17) of the UCC (as defined below) with respect to any of the foregoing; (iv) all income and profits on any of the foregoing and all dividends,
distributions, interest and other payments with respect to any of the foregoing; (v) all other rights and privileges appurtenant to any of the foregoing, including any voting rights and any redemption rights, and (vi) any substitutions for
any of the foregoing, in each case whether now existing or hereafter arising; and 
 (c)    all Proceeds
(as defined below) of the Collateral described in the foregoing clauses (a) and (b). 
 As used herein: 

“Collateral Account” means that certain securities account No. 877-013754-789 of Pledgor established and maintained at Morgan Stanley Smith Barney LLC, including any subaccount, substitute, successor or replacement securities or deposit account in or to which
any Collateral is now or hereafter held or credited. Any renumbering of the Collateral Account shall not limit the rights of Secured Party hereunder, and, to the extent necessary, such renumbering shall be automatically incorporated into the
definition of Collateral Account. 
 “Proceeds” means all proceeds (as defined in the UCC) and, to the extent not
included in such term, all proceeds of, and all other profits, products, rents or receipts, in whatever form, arising from the collection, sale, lease, exchange, assignment, or other disposition of, or other realization upon, any Collateral. 

“Spin-off” means any distribution, issuance or dividend to holders of Shares
of any capital stock or other securities of another issuer owned (directly or indirectly) by the Issuer or any subsidiary thereof. 

“Split-off” means any exchange offer by the Issuer for its own shares in which
the consideration to be delivered to exchanging holders of such shares is capital stock or other securities of another issuer owned (directly or indirectly) by the Issuer. 

 “Issuer” means Oaktree Strategic Income Corporation. 

“Shares” means shares of common stock, par value $0.01 per share (“Shares”), of Oaktree
Strategic Income Corporation. 
 “UCC” means the Uniform Commercial Code as in effect from time to time in the State
of New York or any other state the laws of which are required to be applied in connection with the issue of perfection of security interests. 

 Exhibit B 

Form of Control Agreement 

CONTROL AGREEMENT 
 Re:
Account No(s).: 
 SECURED PARTY 

FBO 
 1. This agreement
refers to the above-referenced and entitled Account(s) identified above (together with any substitution or replacement thereof, the “Account”) custodied by and carried on the books of Morgan Stanley Smith Barney LLC (together with its
successors and assigns, the “Securities Intermediary”) pursuant to the instructions of the undersigned account holder(s) (jointly and severally, if more than one) (collectively, the “Account Holder”), to which certain financial
assets of the Account Holder are or may be credited. 
 2. The Account Holder and the Securities Intermediary hereby acknowledge and agree
that the Account is a cash securities account and is not a delivery versus payment account, a retirement account, a margin account or an account linked to any credit facility. All parties agree that the Account is a “securities account”
within the meaning of Article 8 of the Uniform Commercial Code as in effect in the State of New York from time to time (the “UCC”) and that all property, including cash, held by the Securities Intermediary in the Account shall be treated
as “financial assets” within the meaning of Article 8 of the UCC. For purposes of the Hague Securities Convention1 (the “Convention”) the Account shall be deemed to be a
“securities account” (within the meaning of Article 1(1)(b) of the Convention). 
 The Securities Intermediary confirms and agrees
that (w) it is a “securities intermediary” within the meaning of Article 8 of the UCC and acting in such capacity with respect to the Collateral, (x) for purposes of Article 8 of the UCC, the State of New York is the Securities
Intermediary’s jurisdiction and (y) as of the date hereof, it has an office in the United States which satisfies the requirements of clause (1) and (2) of Article 4 of the Convention. 

3. The Account Holder and the undersigned Secured Party (the “Secured Party”) hereby notify the Securities Intermediary that the
Account Holder has granted the Secured Party a security interest in the Account and all financial assets therein, all proceeds thereof and distributions in connection therewith, and income received thereon, and any additions thereto (the
“Collateral”) pursuant to a security or similar agreement dated on or about the date hereof made by the Account Holder in favor of the Secured Party (as amended, amended and restated, supplemented or otherwise modified from time to time,
the “Security Agreement”). The terms “entitlement order”, “financial asset”, “proceeds”, “security” and “securities intermediary” shall have the meanings set forth in Articles 8 and 9 of
the UCC and the term “security” shall also include property included in the term “securities” in the Convention. The Account Holder represents and warrants to the Secured Party and the Securities Intermediary that no person other
than the Secured Party or the Securities Intermediary has a security interest in, lien on or adverse claim against the Account or any of the 

 

	1 	 “Hague Securities Convention” means the Convention on the Law Applicable to Certain Rights in Respect
of Securities Held with an Intermediary, July 5, 2006, 17 U.S.T. 401, 46 I.L.M. 649. 

 
other Collateral therein, and that it will not attempt to grant such a security interest in or lien on the Account or any of the other Collateral therein without the authorization of the Secured
Party and the Securities Intermediary. The Securities Intermediary confirms that, as of the date hereof, its personnel generally responsible for maintaining records of liens or security interests with respect to customer securities accounts have no
knowledge of any restraint, security interest, lien or other adverse claim in or to the Account or any item therein and represents and warrants that it will not consent to any further or subsequent security interest or lien while the Secured
Party’s security interest remains in effect; provided that the Securities Intermediary shall have the rights set forth in Section 7 herein and may retain a subordinated lien in connection with any obligations that Account Holder may have
incurred or from time to time may incur to the Securities Intermediary. In addition, the Securities Intermediary agrees to use reasonable efforts to notify the Secured Party and the Account Holder in the event it receives any written notice of any
lien, encumbrance or adverse claim against the Account or any of the other Collateral therein. 
 Notwithstanding the foregoing sentence,
the Account Holder and the Secured Party each hereby acknowledges and agrees that if the Securities Intermediary receives a levy, order or other instruction from a governmental, judicial or regulatory body including, but not limited to, any
self-regulatory organization, directing, ordering or instructing the Securities Intermediary to transfer out, or effect the transfer out of, any or all securities positions from the Account or to withdraw or disburse principal or cash or any
combination thereof, from the Account, then the Securities Intermediary may comply with such levy, order or other instruction addressed to it, without prior notice to, or authorization from, the Account Holder or the Secured Party. 

4. Absent instructions from the Secured Party to the contrary pursuant to a Notice of Exclusive Control (as defined below), the Account Holder
shall be authorized to operate the Account in accordance with the terms of this Control Agreement and the Account Holder’s existing client agreements with the Securities Intermediary (the “Client Agreements”), subject to Secured
Party’s security interest in the Collateral. Account Holder may not withdraw or transfer any Collateral from the Account other than in connection with “Permitted Trading.” “Permitted Trading” for purposes of this Control
Agreement is (i) the right of the Account Holder, or its properly designated investment manager, to sell Collateral held in the Account and invest the proceeds of such sale, as well as other cash available in the Account from time to time, in
actively traded marketable securities, cash or cash equivalents, so long as such proceeds of such sale, as well as securities, cash and cash equivalents, are credited to the Account and become Collateral and (ii) the right of the Account
Holder, or its properly designated investment manager, to withdraw dividends and interest paid on the Collateral; provided that for purposes of this clause (ii) the Account Holder delivers to Secured Party and the Securities Intermediary a
withdrawal notice substantially in the form of the notice attached as Exhibit B hereto (a “Withdrawal Notice”) (it being understood that Permitted Trading may be conducted by the Account Holder without the need for authorization from the
Secured Party so long as a Notice of Exclusive Control has not been delivered to the Securities Intermediary and that the Securities Intermediary shall not be responsible for, or have any liability for, Secured Party receiving such Withdrawal
Notice). However, the Account Holder hereby acknowledges and agrees that the Secured Party’s consent to Permitted Trading in no way constitutes a waiver of any of the Secured Party’s rights under the Security Agreement and that it is the
obligation of the Account Holder to ensure at all times that the type and amount of the Collateral in the Account meets the maintenance requirements contained in the Security Agreement or any other agreement related thereto. 

Notwithstanding anything herein to the contrary, within a reasonable period of time following effectiveness pursuant to Section 9 below
of a written notice from the Secured Party to the 

 
Securities Intermediary substantially in the form of the sample notice attached as Exhibit A hereto (a “Notice of Exclusive Control”), not to extend beyond 5:00 p.m., Eastern Time, on
the second Business Day following the date of receipt of a Notice of Exclusive Control by the Securities Intermediary, the Account Holder shall have no right to engage in any further Permitted Trading, and the Securities Intermediary shall not
accept or honor any instructions or entitlement orders from or on behalf of the Account Holder in respect of the Account (including without limitation any Permitted Trading), in each case without the prior consent of the Secured Party.
“Business Day” for purposes of this Control Agreement means a day of the year on which the New York Stock Exchange is open for trading. The Securities Intermediary agrees that all property in the Account at any time shall be treated as a
financial asset for purposes of the Uniform Commercial Code in effect in New York as of the date thereof. 
 5. The Account Holder hereby
authorizes the Securities Intermediary to, and they (or one of them) shall, provide the Secured Party with both account statements and trade confirmations when issued and disclose to the Secured Party such information relative to the Account and the
financial assets and credit balances therein, in each case at the sole cost, if any, of the Account Holder, as the Secured Party may at any time and from time to time request, and as frequently as Secured Party may reasonably require (but no more
than once per seven (7) day period) to permit it to monitor the Collateral for compliance with the Security Agreement, in each case without any reference to any further authority for, or inquiry as to the justification for, such disclosure.

 6. Upon the effectiveness pursuant to Section 9 below of the Notice of Exclusive Control, the Securities Intermediary will comply
with all entitlement orders relating to the Account or any financial asset credited thereto originated by the Secured Party without further action or consent by Account Holder or any other person, and will, as frequently as requested by the Secured
Party, transfer all available credit balances and financial assets in the Account to such account as may be designated by the Secured Party by wire transfer, depository transfer check, automatic clearing house electronic transfer, or otherwise, as
the Secured Party may direct in its sole discretion, and maintain the Account and all financial assets and other items therein as the Secured Party may direct from time to time (including using its best efforts to place or negotiate orders to sell
securities in the Account, including but not limited to sell orders pursuant to stock powers issued in favor of the Securities Intermediary, and transferring the proceeds of sale to the Secured Party in accordance herewith). All entitlement orders,
instructions, requests and directions of the Secured Party hereunder shall (i) be delivered in the manner set forth in Section 9 hereof and (ii) be concurrently delivered to Account Holder (it being understood that Securities
Intermediary shall not be responsible for, or have any liability for, Account Holder receiving such entitlement orders, instructions, requests and directions of the Secured Party). 

7. Any security interest in or lien on the Account or any of the other Collateral therein granted to or otherwise obtained by the Securities
Intermediary (including, without limitation, by operation of law) shall be junior and subordinate to the security interest and lien of the Secured Party in and on the Account and any of the other Collateral, as defined in this Control Agreement,
regardless of the order of perfecting any such security interest or lien, the filing or absence of filing any financing statement or the taking or failure to take any other action. The Securities Intermediary acknowledges the Secured Party’s
perfected security interest in the Account and the other Collateral as defined in this Control Agreement, and agrees that, except as provided herein, it will not (i) foreclose upon, sell or otherwise dispose of the Account or any such other
Collateral, or exercise any bankers’ or other lien or right of setoff or similar right in connection with the Account or any such other Collateral, in each case without the prior consent of the Secured Party or (ii) receive, accept or

 
apply any proceeds of the Account or any such other Collateral to or on account of any indebtedness or obligation of the Account Holder to it, in each case until the Secured Party has released
its security interest in the Account and any such other Collateral; provided, however, that nothing herein shall limit the right of the Securities Intermediary to debit the Account in payment of the then current commissions, charges and other such
fees of the Securities Intermediary associated with the Account and due to the Securities Intermediary, as the case may be, and from time to time to debit the Account in an amount equal to the amount of any deposit that the Securities Intermediary
has credited to the Account that is thereafter returned to the Securities Intermediary because of insufficient funds or is otherwise unpaid. The Securities Intermediary shall not advance margin or other credit against the Account, nor hypothecate
any financial assets or other items carried in the Account, without the prior consent of the Secured Party. The Securities Intermediary shall not enter into any agreement with any other person or entity related to the Account or any financial asset
credited thereto pursuant to which the Securities Intermediary agrees to comply (and the Securities Intermediary shall not comply) with any withdrawal, transfer, payment or redemption instruction, or any other entitlement order or other order, from
such person or entity concerning the Account or any financial assets or other items therein, without the prior consent of the Secured Party, and any such agreement entered into without such consent shall be null and void. 

8. The Account Holder and the Secured Party each acknowledge and agree that the Securities Intermediary shall not be held responsible for
(i) any decline in the market value of the Collateral or the failure to notify the Account Holder or the Secured Party thereof or (ii) the failure to take any action with respect to the Collateral, except as expressly provided in this
Control Agreement, or as instructed by the Secured Party to the Securities Intermediary in accordance with this Control Agreement, and, except as expressly provided in this Control Agreement, this Control Agreement shall not abridge any rights the
Securities Intermediary otherwise may have. To the extent that any provisions of this Control Agreement conflict with any provisions of the Client Agreements, the provisions of this Control Agreement shall control. 

Except with respect to the obligations and duties expressly provided in this Control Agreement, this Control Agreement shall not impose or
create any obligations or duties upon the Securities Intermediary that are greater than or in addition to the usual and customary obligations and duties, if any, of the Securities Intermediary, as applicable, with respect to the Account or the
Account Holder. Except as expressly provided in this Control Agreement, the Securities Intermediary shall not have any obligation or duty whatsoever to interpret the terms of any agreements between the Account Holder and the Secured Party other than
this Agreement or to determine whether any default exists hereunder or thereunder. 
 The Account Holder hereby irrevocably authorizes and
instructs the Securities Intermediary to perform and comply with the terms of this Control Agreement. The Account Holder hereby indemnifies and holds harmless the Securities Intermediary from and against any and all claims, actions and suits
(whether groundless or otherwise), losses, damages, costs, expenses (including attorney’s fees and expenses) and liabilities of every nature and character arising out of or related to this Control Agreement or the transactions contemplated
hereby or any actions taken or omitted to be taken by the Securities Intermediary hereunder, including, without limitation, claims arising out of the Securities Intermediary’s permitting or failing to permit the Account Holder or any other
party to withdraw funds from the Account other than in strict compliance with the terms of this Control Agreement, except to the extent directly caused by the Securities Intermediary’s gross negligence or willful misconduct. The Secured Party
shall indemnify and hold harmless the Securities Intermediary from and against any and all claims, actions and suits (whether groundless or otherwise), losses, 

 
damages, costs, expenses (including attorney’s fees and expenses) and liabilities of every nature and character that may result by reason of the Securities Intermediary complying with
instructions or requests of the Secured Party as permitted or required under this Control Agreement, except to the extent directly caused by the Securities Intermediary’s gross negligence or willful misconduct. The foregoing indemnifications
shall survive any termination of this Control Agreement. 
 The Securities Intermediary may act upon, any instrument or other writing
believed by the Securities Intermediary in good faith to be genuine and to have been signed or presented by a person purporting to be the authorized representative of the Secured Party or the Account Holder, as the case may be. The Securities
Intermediary shall not be liable in connection with the performance or non-performance of its duties hereunder, except for its own gross negligence or willful misconduct. The Securities Intermediary’s
duties shall be determined only with reference to this Control Agreement and applicable laws, and the Securities Intermediary shall not be charged with knowledge of, or any duties or responsibilities in connection with, any other document or
agreement. If in doubt as to its duties and responsibilities hereunder, the Securities Intermediary may consult with counsel of its choice and shall be protected in any action taken or omitted to be taken in connection with the advice or opinion of
such counsel. The Securities Intermediary shall not have any liability to any party for any incidental, punitive or consequential damages resulting from any breach by such party of its obligations hereunder. 

9. Each notice, request or other communication given to any party hereunder shall be in writing and shall be delivered by hand, mailed by
United States registered or certified first class mail, postage prepaid and return receipt requested, or sent by overnight courier, or sent by facsimile, to such party at its address or facsimile number set forth on the signature page hereof or, in
each case, to such other address for notices or such other manner as any of the parties to this Control Agreement shall last have notified in writing the other parties hereto in accordance with this Section. Any such notice or communication shall be
deemed to have been duly given or made and to have become effective at the time of the receipt thereof by the party to which it is directed (except that, if not given by 5:00 p.m., Eastern Time, shall be deemed to have been given at the opening of
business on the next Business Day for the recipient), which may be evidenced by confirmation of delivery from any overnight or hand courier, at its address specified on the signature page hereof. 

10. This Control Agreement may not be amended or modified without the prior consent of the Securities Intermediary, the Account Holder and the
Secured Party. This Control Agreement shall continue in full force until delivery of a notice from the Secured Party to the Securities Intermediary terminating this Control Agreement. Upon receipt of such notice, all obligations of the Securities
Intermediary under this Control Agreement shall cease, including without limitation any and all obligations hereunder with respect to the maintenance of the Account. Thereafter, the Securities Intermediary may take such steps as the Account Holder
may request, at the Account Holder’s sole expense, if any, to vest full ownership and control of the Account in the Account Holder. This Control Agreement may also be terminated by the Securities Intermediary, in each case upon 60 days’
notice to the Secured Party and the Account Holder. Upon such notice, the Secured Party shall provide the Securities Intermediary with instructions regarding the delivery of the Collateral to a successor securities intermediary, after which the
Securities Intermediary shall have no further obligations under this Control Agreement. All entitlement orders, instructions, requests and directions of the Secured Party hereunder shall be delivered in the manner set forth in Section 9 hereof.

 11. No delay or omission on the part of the Secured Party or the Securities Intermediary in
exercising any right hereunder shall operate as a waiver of such right or of any other right under this Control Agreement. No waiver of any right under this Control Agreement shall be effective unless in writing and signed by the Secured Party and
the Securities Intermediary, and no waiver on one occasion shall be construed as a bar to or waiver of any such right on any other occasion. 

12. This Control Agreement and any waiver or amendment hereto may be executed in counterparts and by the parties hereto in separate
counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. This Control Agreement may be executed and delivered by facsimile or other electronic
transmission all with the same force and effect as if the same were a fully executed and delivered original manual counterpart. 
 13. This
Control Agreement shall be governed by and construed in accordance with the laws of the State of New York (without giving effect to the conflicts of law principles thereof) and shall be binding upon and shall inure to the benefit of the parties
hereto and their respective successors and assigns. As permitted by Article 4 of the Convention on the Law Applicable to Certain Rights in Respect of Securities Held with an Intermediary, the parties hereto agree that the state of New York is the
securities intermediary’s jurisdiction for purposes of the Uniform Commercial Code and the law of the State of New York shall govern each of the issues specified in Article 2(1) of the Convention. To the extent the immediately preceding
sentence conflicts with the provisions of any other account agreement governing the Account, such preceding sentence shall control. 
 14.
This Control Agreement constitutes the entire agreement, and supersedes any prior agreements, of the parties hereto concerning its subject matter. In the event a provision of this Control Agreement is unenforceable, this agreement shall be construed
to the extent possible as if the unenforceable provision were omitted. 
 15. ALL PARTIES HEREBY WAIVE ALL RIGHTS TO A TRIAL BY JURY IN ANY
ACTION OR PROCEEDING RELATING TO THE ACCOUNT OR THIS AGREEMENT. 
 Remainder of Page Intentionally Left Blank. 

 Please indicate your agreement with the foregoing by signing below and returning this Control Agreement to the
Secured Party and the Securities Intermediary. 
 ACCOUNT HOLDER 
  

									
	Signature	  	  
	  		  	Date	  	                                     
   
	Authorized Signer:	  		  		  	
	Address:	  		  		  	

 SECURED PARTY 
  

									
	Signature	  	  
	  		  	Date	  	                                     
   
	 Authorized Signer:
	  		  		  	
	 Title:
	  		  		  		  	
	 Address:
	  		  		  		  	
	 Facsimile:
	  		  		  		  	

  

									
	Signature	  	  
	  		  	Date	  	                                     
   
	 Authorized Signer:
	  		  		  	
	 Title:
	  		  		  		  	
	 Address:
	  		  		  		  	
	 Facsimile:
	  		  		  		  	

 SECURITIES INTERMEDIARY 

MORGAN STANLEY SMITH BARNEY LLC 
  

									
	Signature	  	  
	  		  	Date	  	                                     
   
	 Name:
	  		  		  	
	 Title: Complex Manager
	  		  		  	
	 Address:
	  		  		  		  	
	 Branch Telephone Number:
	  		  		  	
	 Facsimile:
	  		  		  	

 SAMPLE FORM ONLY – DO NOT COMPLETE UNLESS ACCOUNT HOLDER WILL BE DENIED TRADING PRIVILEGES 

EXHIBIT A: Form of Notice of Exclusive Control 

                          
  ,          
  

			
	Morgan Stanley Smith Barney LLC
	
	  

	  

	Attn.:	 	  

  

			
	[Account Holder]
	
	  

	  

	Attn.:	 	  

 Re: Control Agreement dated [    ] 

Ladies and Gentlemen: 
 Reference is made to the
Control Agreement dated ______________ (the “Agreement”; capitalized terms used herein shall have the meanings assigned thereto in the Agreement) among you, us and __________________ (the “Account Holder”). This letter
constitutes a Notice of Exclusive Control under the Agreement. 
 In accordance with Section 4 of the Agreement, and continuing until
we shall authorize you in writing to do otherwise, you shall no longer accept or honor any instructions from or on behalf of the Account Holder in respect of the Account or any financial assets or credit balances in the Account and, instead, shall
only accept and honor our instructions, as further provided in the Agreement. 
  

			
	Very truly yours,
	
	(SECURED PARTY)
	
	[SAMPLE]
		
	By:	 	
		 	Name:
		 	Title:

  

 EXHIBIT B: Form of Withdrawal Notice 

                          
  ,          
  

			
	Morgan Stanley Smith Barney LLC
	
	  

	  

	Attn.:	 	  

  

			
	[Secured Party]
	
	  

	  

	Attn.:	 	  

 Re: Control Agreement dated [    ] 

Ladies and Gentlemen: 
 Reference is made to the
Control Agreement dated ______________ (the “Agreement”; capitalized terms used herein shall have the meanings assigned thereto in the Agreement) among you, us and __________________ (the “Secured Party”). This letter constitutes
a Withdrawal Notice under the Agreement. 
 In accordance with Section 4 of the Agreement, we direct Morgan Stanley Smith Barney LLC to
transfer $[___] to [Account No. ________ at _________]. 
  

			
	Very truly yours,
	
	(ACCOUNT HOLDER)
	
	[SAMPLE]
		
	By:	 	
		 	Name:
		 	Title:Exhibit 10.1

 

LOAN AND SECURITY AGREEMENT

 

Dated as of October 17, 2017

 

between

 

SANTANDER BANK, N.A.,

 

as Lender,

 

JANEL GROUP, INC.,

PCL TRANSPORT, LLC,

JANEL ALPHA GP, LLC,

W.J. BYRNES & CO., INC.,

LIBERTY INTERNATIONAL, INC.,

THE JANEL GROUP OF GEORGIA, INC.

 

Jointly and Severally, Individually and Collectively,

as Borrower,

 

and

 

JANEL CORPORATION,

 

as a Loan Party Obligor

 

     

     

    

 

	1.	LOANS AND LETTERS OF CREDIT.	1
	 	 	 
	1.1	Amount of Loans / Letters of Credit	1
	 	 	 
	1.2	Reserves	1
	 	 	 
	1.3	Protective Advances	1
	 	 	 
	1.4	Notice of Borrowing; Manner of Revolving Loan Borrowing	1
	 	 	 
	1.5	Other Provisions Applicable to Letters of Credit	2
	 	 	 
	1.6	Conditions of Making the Loans and Issuing Letters of Credit	2
	 	 	 
	1.7	Repayments.	3
	 	 	 
	1.8	Prepayments / Voluntary Termination	3
	 	 	 
	1.9	Obligations Unconditional	3
	 	 	 
	1.10	Reversal of Payments	4
	 	 	 
	1.11	Administrative Borrower	4
	 	 	 
	2.	INTEREST AND FEES; LOAN ACCOUNT	5
	 	 	 
	2.1	Interest	5
	 	 	 
	2.2	Fees	5
	 	 	 
	2.3	Payment of Interest	5
	 	 	 
	2.4	Computation of Interest and Fees	5
	 	 	 
	2.5	Loan Account; Monthly Accountings	5
	 	 	 
	2.6	LIBOR Option	5
	 	 	 
	2.7	Capital Requirements	7
	 	 	 
	2.8	Further Obligations; Maximum Lawful Rate	7
	 	 	 
	3.	SECURITY INTEREST GRANT / POSSESSORY COLLATERAL / FURTHER ASSURANCES.	7
	 	 	 
	3.1	Grant of Security Interest	7
	 	 	 
	3.2	Possessory Collateral	8
	 	 	 
	3.3	Further Assurances	8
	 	 	 
	3.4	UCC Financing Statements	8
	 	 	 
	4.	CERTAIN PROVISIONS REGARDING ACCOUNTS, INVENTORY, COLLECTIONS, APPLICATIONS OF PAYMENTS, INSPECTION RIGHTS, AND APPRAISALS.	8
	 	 	 
	4.1	Lock Boxes and Blocked Accounts	8
	 	 	 
	4.2	Application of Payments	9
	 	 	 
	4.3	Notification; Verification	9
	 	 	 
	4.4	Power of Attorney	10
	 	 	 
	4.5	Disputes	11
	 	 	 
	4.6	Invoices	11
	 	 	 
	4.7	Access to Collateral, Books and Records	11
	 	 	 
	5.	REPRESENTATIONS, WARRANTIES AND COVENANTS.	11
	 	 	 
	5.1	Existence and Authority	11

 

     

     

    

 

	5.2	Names; Trade Names and Styles	12
	 	 	 
	5.3	Title to Collateral; Third Party Locations; Permitted Liens	12
	 	 	 
	5.4	Accounts and Chattel Paper	12
	 	 	 
	5.5	Electronic Chattel Paper	12
	 	 	 
	5.6	Capitalization; Investment Property	12
	 	 	 
	5.7	Commercial Tort Claims	14
	 	 	 
	5.8	State of Organization; Location of Collateral	14
	 	 	 
	5.9	Financial Statements and Reports; Solvency	14
	 	 	 
	5.10	Tax Returns and Payments; Pension Contributions	15
	 	 	 
	5.11	Compliance with Laws; Intellectual Property; Licenses	15
	 	 	 
	5.12	Litigation	16
	 	 	 
	5.13	Use of Proceeds	16
	 	 	 
	5.14	Insurance.	16
	 	 	 
	5.15	Financial, Collateral and Other Reporting / Notices	17
	 	 	 
	5.16	Litigation Cooperation	18
	 	 	 
	5.17	Maintenance of Collateral, Etc.	19
	 	 	 
	5.18	Material Contracts	19
	 	 	 
	5.19	No Default	19
	 	 	 
	5.20	No Material Adverse Change	19
	 	 	 
	5.21	Full Disclosure	19
	 	 	 
	5.22	Sensitive Payments	19
	 	 	 
	5.23	Parent	20
	 	 	 
	5.24	Patriot Act	20
	 	 	 
	5.25	OFAC	20
	 	 	 
	5.26	Government Regulation	20
	 	 	 
	5.27	Negative Covenants	20
	 	 	 
	5.28	Financial Covenant	21
	 	 	 
	6.	RELEASE, LIMITATION OF LIABILITY AND INDEMNITY	22
	 	 	 
	6.1	Release	22
	 	 	 
	6.2	Limitation of Liability	22
	 	 	 
	6.3	Indemnity	22
	 	 	 
	7.	EVENTS OF DEFAULT AND REMEDIES	22
	 	 	 
	7.1	Events of Default	22
	 	 	 
	7.2	Remedies with Respect to Lending Commitments/Acceleration/Etc.	24
	 	 	 
	7.3	Remedies with Respect to Collateral	24
	 	 	 
	8.	LOAN GUARANTY	28
	 	 	 
	8.1	Guaranty	28

 

    	 	ii	 

     

    

 

	8.2	Guaranty of Payment	28
	 	 	 
	8.3	No Discharge or Diminishment of Loan Guaranty	28
	 	 	 
	8.4	Defenses Waived	29
	 	 	 
	8.5	Rights of Subrogation	29
	 	 	 
	8.6	Reinstatement; Stay of Acceleration	29
	 	 	 
	8.7	Information	29
	 	 	 
	8.8	Termination	29
	 	 	 
	8.9	Maximum Liability	30
	 	 	 
	8.10	Contribution	30
	 	 	 
	8.11	Liability Cumulative	30
	 	 	 
	8.12	Subordination	30
	 	 	 
	9.	PAYMENTS FREE OF TAXES; OBLIGATION TO WITHHOLD; PAYMENTS ON ACCOUNT OF TAXES	31
	 	 	 
	10.	GENERAL PROVISIONS	33
	 	 	 
	10.1	Notices	33
	 	 	 
	10.2	Severability	34
	 	 	 
	10.3	Integration	34
	 	 	 
	10.4	Waivers	34
	 	 	 
	10.5	Amendment	35
	 	 	 
	10.6	Time of Essence	35
	 	 	 
	10.7	Expenses, Fee and Costs Reimbursement	35
	 	 	 
	10.8	Benefit of Agreement; Assignability	35
	 	 	 
	10.9	Recordation of Assignment	35
	 	 	 
	10.10	Participations	36
	 	 	 
	10.11	Headings; Construction	36
	 	 	 
	10.12	USA PATRIOT Act Notification	36
	 	 	 
	10.13	Confidentiality and Publicity	37
	 	 	 
	10.14	Counterparts; Fax/Email Signatures	37
	 	 	 
	10.15	GOVERNING LAW	38
	 	 	 
	10.16	CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL	38

 

	Disclosure Schedule	 
	Schedule A	Description of Certain Terms
	Schedule B	Definitions
	Schedule C	Post-Closing Obligations
	Schedule D	Fees
	Schedule E	Reporting
	Schedule F	Financial Covenant
	Schedule G	Additional Conditions Precedent
	Exhibit A	Form of Notice of Borrowing
	Exhibit B	LIBOR Notice
	Exhibit C	Closing Checklist
	Exhibit D	Authorized Accounts Form
	Exhibit E	Form of Account Debtor Notification
	Exhibit F	Form of Compliance Certificate

 

    	 	iii	 

     

    

 

Loan and Security Agreement

 

This Loan and Security
Agreement (as it may be amended, restated or otherwise modified from time to time, this “Agreement”)
is entered into as of October 17, 2017, among (1) SANTANDER BANK, N.A., a national banking association (“Lender”),
(2) JANEL GROUP, INC., a New York corporation (“Janel”), PCL TRANSPORT, LLC, a New Jersey limited
liability company (“PCL”), JANEL ALPHA GP, LLC, a Delaware limited liability company (“Alpha”),
W.J. BYRNES & CO., INC., a California corporation (“Byrnes”), LIBERTY INTERNATIONAL, INC., a Rhode
Island corporation (“Liberty”), THE JANEL GROUP OF GEORGIA, INC., a Georgia corporation (“Georgia”,
and together with Janel, PCL, Alpha, Byrnes, and Liberty, individually and collectively, and jointly and severally referred to
herein as “Borrower”), and (3) JANEL CORPORATION, a Nevada corporation (“Parent”),
as a Loan Party Obligor (as defined herein). The Schedules and Exhibits to this Agreement are an integral part of this Agreement
and are incorporated herein by reference. Terms used, but not defined elsewhere, in this Agreement are defined in Schedule B.

 

		1.	LOANS AND LETTERS OF CREDIT.

 

1.1           Amount
of Loans / Letters of Credit. Revolving Loans and Letters of Credit. Subject to the terms and conditions contained in this
Agreement, including Sections 1.3 and 1.6, Lender will, from time to time prior to the Maturity Date, at Borrower’s request,
(i) make revolving loans to Borrower (“Revolving Loan”), and (ii) make letters of credit (“Letters
of Credit”) available to Borrower; provided, that after giving effect to each such Revolving Loan and
each such Letter of Credit, (A) the outstanding balance of all Revolving Loans and the Letter of Credit Balance will not exceed
the lesser of (x) the Maximum Revolving Facility Amount and (y) the Borrowing Base, and (B) none of the other Loan Limits for Revolving
Loans will be exceeded. The Revolving Loans made by Lender shall be evidenced by a Revolving Credit Note, duly executed on behalf
of the Borrower, dated the Closing Date, payable to Lender in an aggregate principal amount equal to the Maximum Revolving Facility
Amount.

 

1.2           Reserves.
Lender may, with prior written notice to Borrower, from time to time establish and revise reserves against the Borrowing Base in
such amounts and of such types as Lender deems appropriate in its Permitted Discretion (“Reserves”).
In no event shall the establishment of a Reserve in respect of a particular actual or contingent liability obligate Lender to make
advances to pay such liability or otherwise obligate Lender with respect thereto. So long as no Event of Default exists, Lender
shall not establish a Reserve for outstandings for credit cards issued by the Lender to any Loan Party.

 

1.3           Protective
Advances. Any contrary provision of this Agreement or any other Loan Document notwithstanding,
at any time (A) after the occurrence and during the continuance of a Default or an Event of Default, or (B) that any of the other
applicable conditions precedent set forth in Section 1.1 and/or Section 1.6 or otherwise are not satisfied, Lender hereby is authorized
by Borrower, from time to time, in Lender’s sole discretion, to make Revolving Loans to, or for the benefit of, Borrower,
that Lender in its sole discretion deems necessary or desirable (1) to preserve or protect the Collateral or any portion thereof,
or (2) to enhance the likelihood of repayment of the Obligations (the Revolving Loans described in this Section 1.3 shall be referred
to as “Protective Advances”). Any contrary provision of this Agreement or any other Loan Document notwithstanding,
Lender may direct the proceeds of any Protective Advance to Borrower or to such other Person as Lender determines in its sole discretion.
All Protective Advances shall be payable immediately upon demand.

 

1.4           Notice
of Borrowing; Manner of Revolving Loan Borrowing. Borrower shall request each Revolving Loan
by submitting such request in writing or via an Approved Electronic Communication, a Notice of Borrowing substantially in the form
of Exhibit A hereto) (each such request a “Notice of Borrowing”) and executed by Administrative Borrower
(as defined in Section 1.11). Subject to the terms and conditions of this Agreement, including Sections 1.1 and 1.6, Lender shall,
except as provided in Section 1.3, deliver the amount of the Revolving Loan requested in the Notice of Borrowing for credit to
the operating account of the Administrative Borrower which is maintained with the Lender: (i) with respect to a request for a Base
Rate Loan, (x) on the same day if the Notice of Borrowing is received by Lender on or before 2:00 p.m. Eastern Time on a Business
Day, (y) on the immediately following Business Day if the Notice of Borrowing is received by Lender after 2:00 p.m. Eastern Time
on a Business Day or (z) if such notice is received by Lender on any day that is not a Business Day; and (ii) with respect to a
LIBOR Rate Loan, on or before 2:00 p.m. Eastern Time on the date specified in the applicable LIBOR Notice. Lender shall charge
to the Revolving Loan Lender’s usual and customary fees for the wire transfer of any Loan, if applicable.

 

     

     

    

 

1.5           Other
Provisions Applicable to Letters of Credit. Lender shall, on terms and conditions set forth
in this Agreement (including the terms and conditions set forth in Section 1.1 and Section 1.6), issue Letters of Credit for the
benefit of the Borrower; provided, that after giving effect to the issuance of each Letter of Credit, the Letter
of Credit Balance will not exceed the Letter of Credit Limit. Borrower agrees to execute all documentation required by Lender in
respect of the issuance of a Letter of Credit. Borrower hereby unconditionally and irrevocably agrees to reimburse Lender for each
disbursement made by Lender under any Letter of Credit honoring any demand for payment made thereunder, in each case on the date
that such payment or disbursement is made. Borrower’s reimbursement obligations hereunder shall be irrevocable and unconditional
under all circumstances, including (i) any lack of validity or enforceability of any Letter of Credit, this Agreement or any other
Loan Document, (ii) the existence of any claim, set-off, defense or other right which any Loan Party Obligor may have at any time
against a beneficiary named in a Letter of Credit, any transferee of any Letter of Credit (or any Person for whom any such transferee
may be acting), Lender, or any other Person, whether in connection with any Letter of Credit, this Agreement, any other Loan Document,
the transactions contemplated herein or any unrelated transactions (including any underlying transaction between any Loan Party
Obligor and the beneficiary named in any Letter of Credit), (iii) any lack of validity, sufficiency or genuineness of any document
which Lender has determined complies on its face with the terms of the applicable Letter of Credit, even if such document should
later prove to have been forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been untrue
or inaccurate in any respect, or (iv) the surrender or impairment of any security for the performance or observance of any of the
terms hereof. Any and all amounts paid by Lender in respect of a Letter of Credit will, at the election of Lender and any contrary
provision of this Agreement or other Loan Document notwithstanding, be deemed to be a Base Rate Loan and bear interest at the rate
then applicable to Base Rate Loans.

 

1.6           Conditions
of Making the Loans and Issuing Letters of Credit. Lender’s obligation to make any Loan
or issue any Letter of Credit under this Agreement is subject to the following conditions precedent (as well as any other conditions
set forth in this Agreement or any other Loan Document), all of which must be satisfied in a manner acceptable to Lender (and as
applicable, pursuant to documentation which in each case is in form and substance acceptable to Lender) as of each day that such
Loan is made or such Letter of Credit is issued, as applicable:

 

(a)          Loans
and Letters of Credit Made and/or Issued on the Closing Date: With respect to Loans made, or Letters of Credit issued, on the
Closing Date, (i) each applicable Loan Party Obligor shall have duly executed and/or delivered, or, as applicable, shall have caused
such other applicable Persons to have duly executed and or delivered, to Lender such agreements, instruments, documents, proxies
and certificates as Lender may require, and including such other agreements, instruments, documents and/or certificates listed
on the closing checklist attached hereto as Exhibit C; (ii) Lender shall have completed its business and legal due diligence pertaining
to the Loan Party Obligors and their respective businesses and assets (including, without limitation, a field exam prior to the
Closing Date), with results thereof satisfactory to Lender in its sole discretion; (iii) Borrower shall have paid to Lender all
fees due on the Closing Date, and shall have paid or reimbursed Lender for all of Lender’s costs, charges and expenses incurred
through the Closing Date (and in connection herewith, Borrower hereby irrevocably authorizes Lender to charge such fees, costs,
charges and expenses as Base Rate Loans); and (iv) those other conditions set forth Schedule G shall have been completed to the
satisfaction of the Lender.

 

(b)          All
Loans and Letters of Credit: With respect to Loans made or Letters of Credit issued on the Closing Date or at any time thereafter,
in addition to the conditions specified in clause (a) above as applicable, (i) Borrower shall have provided to Lender such information
as Lender may reasonably require in order to determine the Borrowing Base (including the items set forth in Section 5.15(a)), as
of such borrowing or issue date, after giving effect to such Loans or Letters of Credit, as applicable; (ii) each applicable Loan
Party Obligor shall have duly executed and/or delivered, or, as applicable, shall have caused such other applicable Persons to
have duly executed and or delivered, to Lender such further agreements, instruments, documents, proxies and certificates as Lender
may reasonably require in connection therewith; (iii) each of the representations and warranties set forth in this Agreement and
in the other Loan Documents shall be true and correct in all material respects (without duplication of any materiality qualifiers
already set forth therein) as of the date such Loan is made or such Letter of Credit is issued (or to the extent any representations
or warranties are expressly made solely as of an earlier date, such representations and warranties shall be true and correct as
of such earlier date), both before and after giving effect thereto; and (iv) no Default or Event of Default shall be in existence,
both before and after giving effect thereto.

 

    	 	2	 

     

    

 

(c)          Post-Closing
Obligations. The obligation of Lender to continue to make Loans or issue Letters of Credit after the Closing Date, in addition
to the other conditions set forth in this Section 1.6, is subject to the fulfillment by the Loan Party Obligors, on or before the
date applicable thereto, of each of the conditions subsequent set forth on Schedule C (the failure by the Loan Party Obligors to
so fulfill any such subsequent condition shall constitute an Event of Default).

 

1.7         Repayments.

 

(a)          Revolving
Loans/Letters of Credit. If at any time (a) the sum of the outstanding balance of all Revolving Loans and the Letter of Credit
Balance exceeds the lesser of (i) the Maximum Revolving Facility Amount and (ii) the Borrowing Base, or (b) any of the Loan Limits
for Revolving Loans or Letters of Credit are exceeded, then in each case, Borrower will immediately pay to Lender such amounts
(or, with respect to the Letter of Credit Balance, provide cash collateral to Lender in the manner set forth in clause (c) below)
as shall cause Borrower to eliminate such excess.

 

(b)          Maturity
Date Payments/Cash Collateral. All remaining outstanding monetary Obligations (including all accrued and unpaid fees described
on Schedule D) shall be payable in full on the Maturity Date or, if earlier, the earlier of the date of any acceleration pursuant
to Section 7.2 and the Termination Date. Without limiting the generality of the foregoing, if, on the Maturity Date, there are
any outstanding Letters of Credit, then on such date Borrower shall provide to Lender cash collateral in an amount equal to 105%
of the Letter of Credit Balance to secure all of the Obligations (including estimated attorneys’ fees and other expenses)
relating to said Letters of Credit or such greater percentage or amount as Lender reasonably deems appropriate, pursuant to a cash
pledge agreement in form and substance satisfactory to Lender.

 

1.8         Prepayments
/ Voluntary Termination. Borrower may, on at least fifteen days’ prior written notice
received by Lender, permanently terminate the Loan facilities by repaying all of the outstanding monetary Obligations, including
all principal, interest and fees with respect to the Revolving Loans and any term loan, and an Early Termination Fee in the amount
specified in Section (e) of Schedule D. If, on the date of a voluntary termination pursuant to this Section 1.8, there are any
outstanding Letters of Credit, then on such date, and as a condition precedent to such termination, Borrower shall provide to Lender
cash collateral in an amount equal to 105% of the Letter of Credit Balance to secure all of the Obligations (including estimated
attorneys’ fees and other expenses) relating to said Letters of Credit or such greater percentage or amount as Lender reasonably
deems appropriate, pursuant to a cash pledge agreement in form and substance satisfactory to Lender. From and after such date of
termination, Lender shall have no obligation whatsoever to extend any additional Loans or Letters of Credit.

 

1.9         Obligations
Unconditional.

 

(a)          The
payment and performance of all Obligations shall constitute the absolute and unconditional obligations of each Loan Party Obligor,
and shall be independent of any defense or rights of set-off, recoupment or counterclaim which any Loan Party Obligor or any other
Person might otherwise have against Lender or any other Person. All payments required (other than by Lender) by this Agreement
or the other Loan Documents shall be made in Dollars (unless payment in a different currency is expressly provided otherwise in
the applicable Loan Document) and paid free of any deductions or withholdings for any taxes or other amounts and without abatement,
diminution or set-off. If any Loan Party Obligor is required by applicable law to make such a deduction or withholding from a payment
under this Agreement or under any other Loan Document, such Loan Party Obligor shall pay to Lender such additional amount as is
necessary to ensure that, after the making of such deduction or withholding, Lender receives (free from any liability in respect
of any such deduction or withholding) a net sum equal to the sum which it would have received and so retained had no such deduction
or withholding been made or required to be made. Each Loan Party Obligor shall (i) pay the full amount of any deduction or withholding
which it is required to make by law to the relevant authority within the payment period set by applicable law, and (ii) promptly
after any such payment, deliver to Lender an original (or certified copy) official receipt issued by the relevant authority in
respect of the amount withheld or deducted or, if the relevant authority does not issue such official receipts, such other evidence
of payment of the amount withheld or deducted as is reasonably acceptable to Lender.

 

    	 	3	 

     

    

 

(b)          If,
at any time and from time to time after the Closing Date (or at any time before or after the Closing Date with respect to (x) the
Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, regulations, guidelines or directives thereunder
or issued in connection therewith, or (y) all requests, rules, guidelines or directives promulgated by the Bank for International
Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign
regulatory authorities, in each case for purposes of this clause (y) pursuant to Basel III, regardless of the date enacted, adopted
or issued), (i) any change in any existing law, regulation, treaty or directive or in the interpretation or application thereof,
(ii) any new law, regulation, treaty or directive enacted or application thereof, or (iii) compliance by Lender with any request
or directive (whether or not having the force of law) from any Governmental Authority, central bank or comparable agency (A) subjects
Lender to any tax, levy, impost, deduction, assessment, charge or withholding of any kind whatsoever with respect to any Loan Document,
or changes the basis of taxation of payments to Lender of any amount payable thereunder (except, in each case, for Excluded Taxes),
or (B) imposes on Lender any other condition or increased cost in connection with the transactions contemplated thereby or participations
therein, and the result of any of the foregoing is to increase the cost to Lender of making or continuing any Loan or Letter of
Credit or to reduce any amount receivable hereunder or under any other Loan Document, then, in any such case (each, a “Change
of Law”), Borrower shall promptly pay to Lender, when notified to do so by Lender, any additional amounts necessary
to compensate Lender, on an after-tax basis, for such additional cost or reduced amount as determined by Lender. Each such notice
of additional amounts payable pursuant to this Section 1.9(b) submitted by Lender to Borrower shall, absent manifest error, be
final, conclusive and binding for all purposes.

 

(c)          This
Section 1.9 shall remain operative even after the Termination Date and shall survive the payment in full of all of the Loans until
the expiration of the statute of limitations with respect thereto.

 

1.10        Reversal
of Payments. To the extent that any payment or payments made to or received by Lender pursuant
to this Agreement or any other Loan Document are subsequently invalidated, declared to be fraudulent or preferential, set aside,
or required to be repaid to any trustee, receiver or other Person under any state, federal or other bankruptcy or other such applicable
law, then, to the extent thereof, such amounts (and all Liens, rights and remedies therefor) shall be revived as Obligations (secured
by all such Liens) and continue in full force and effect under this Agreement and under the other Loan Documents as if such payment
or payments had not been received by Lender. This Section 1.10 shall remain operative even after the Termination Date and shall
survive the payment in full of all of the Loans until the expiration of the statute of limitations with respect thereto.

 

1.11       
Administrative Borrower. Each of PCL, Alpha, Byrnes, Georgia, and Liberty hereby irrevocably
appoints Janel as the borrowing agent and attorney-in-fact for itself and each other Borrower (the “Administrative
Borrower”), which appointment shall remain in full force and effect unless and until Lender shall have received prior
written notice signed by Borrower that such appointment has been revoked and that another Person has been appointed Administrative
Borrower. Borrower hereby irrevocably appoints and authorizes the Administrative Borrower (a) to provide Lender with all notices
with respect to Loans, Letters of Credit and other extensions of credit obtained for the benefit of Borrower and all other notices
and instructions under this Agreement, (b) to accept the proceeds of any Loans for disbursement to the applicable Borrower, and
(c) to take such action as the Administrative Borrower deems appropriate on its behalf to obtain Loans, Letters of Credit and other
extensions of credit and to exercise such other powers as are reasonably incidental thereto to carry out the purposes of this Agreement.
It is understood that the handling of the loan account and Collateral in a combined fashion, as more fully set forth herein, is
done solely as an accommodation to Borrower in order to utilize the collective borrowing powers of Borrower in the most efficient
and economical manner and at their request, and that Lender shall not incur liability to Borrower as a result hereof. Borrower
expects to derive benefit, directly or indirectly, from the handling of the loan account and the Collateral in a combined fashion
since the successful operation of Borrower is dependent on the continued successful performance of the integrated group. To induce
Lender to do so, and in consideration thereof, Borrower hereby jointly and severally agrees to indemnify Lender and hold Lender
harmless against any and all liability, expense, loss or claim of damage or injury, made against Lender by Borrower or by any third
party whosoever, arising from or incurred by reason of (a) the handling of the loan account and Collateral of Borrower as herein
provided, or (b) Lender’s relying on any instructions of the Administrative Borrower (it being acknowledged and agreed that
the Lender shall have no obligation to confirm that the proceeds of any Revolving Loan have been delivered to the applicable Borrower).

 

    	 	4	 

     

    

 

		2.	INTEREST AND FEES; LOAN ACCOUNT.

 

2.1           Interest.
All monetary Obligations shall bear interest as follows: (a) if the relevant Obligation is a Base Rate Loan, at a per annum
rate equal to the applicable rate therefor set forth in Section 3 of Schedule A; (b) if the relevant Obligation is a
LIBOR Rate Loan, at a per annum rate equal to the applicable rate therefor set forth in Section 3 of Schedule A; and
(c) otherwise, at a per annum rate equal to the rate applicable to Base Rate Loans, provided, that automatically
after the occurrence and during the continuation of an Event of Default, all Loans and other monetary Obligations shall bear interest
at a rate per annum equal to three (3) percentage points in excess of the rate otherwise applicable thereto (the “Default
Rate”).

 

2.2           Fees.
Borrower shall pay Lender the fees set forth on Schedule D hereto on the dates set forth therein, which fees are in addition to
all fees and other sums payable by Borrower or any other Person to Lender under this Agreement or under any other Loan Document,
and, in each case are not refundable once paid.

 

2.3           Payment
of Interest. Except as provided to the contrary in Section 2.6 and for interest accruing
at the Default Rate, which shall be due on demand, interest shall be due and payable, in arrears, on the first day of each month
at any time that Obligations are outstanding.

 

2.4           Computation
of Interest and Fees. All interest and fees shall be calculated daily on the outstanding monetary
Obligations based on the actual number of days elapsed in a year of 360 days.

 

2.5           Loan
Account; Monthly Accountings. Lender shall maintain a loan account for Borrower reflecting
all outstanding Loans and the Letter of Credit Balance, along with interest accrued thereon and such other items reflected therein
(the “Loan Account”), and shall provide Borrower with a monthly accounting reflecting the activity in
the Loan Account. Each accounting shall be deemed correct, accurate and binding on Borrower (except for reverses and reapplications
of payments made and corrections of errors discovered by Lender), unless Borrower notifies Lender in writing to the contrary within
thirty days after such account is rendered, describing the nature of any alleged errors or omissions. However, Lender’s failure
to maintain the Loan Account or to provide any such accounting shall not affect the legality or binding nature of any of the Obligations.
Interest, fees and other monetary Obligations due and owing under this Agreement (including fees and other amounts paid by Lender
to issuers of Letters of Credit) may, in Lender’s discretion, be charged to the Loan Account, and any contrary provision
of this Agreement or other Loan Document notwithstanding, will thereafter be deemed to be Base Rate Loans and will bear interest
at the rate per annum applicable thereto.

 

2.6         LIBOR
Option.

 

(a)          In
lieu of having interest charged at the rate based upon the Base Rate, Borrower shall have the option (the “LIBOR Option”)
to have interest on all or a portion of the Revolving Loans be charged at a rate of interest based upon the LIBOR Rate. Interest
on LIBOR Rate Loans shall be payable on the earliest of (i) the last day of the Interest Period applicable thereto, (ii) the occurrence
of an Event of Default in consequence of which Lender has elected to accelerate the maturity of all or any portion of the Obligations,
or (iii) the Termination Date. On the last day of each applicable Interest Period, unless Borrower properly has exercised
the LIBOR Option with respect thereto, the interest rate applicable to such LIBOR Rate Loan automatically shall convert to the
rate of interest then applicable to Base Rate Loans. At any time that an Event of Default has occurred and is continuing, Borrower
no longer shall have the option to request that Revolving Loans bear interest at a rate based upon the LIBOR Rate and Lender shall
have the right to convert the interest rate on all outstanding LIBOR Rate Loans to the rate then applicable to Base Rate Loans
hereunder.

 

(b)          (i)          Borrower
may, at any time and from time to time, so long as no Event of Default has occurred and is continuing, elect to exercise the LIBOR
Option by notifying Lender prior to 2:00 p.m. Eastern Time at least three Business Days prior to the commencement of the proposed
Interest Period (the “LIBOR Deadline”). Notice of Borrower’s election of the LIBOR Option for a
permitted portion of the Revolving Loans and an Interest Period pursuant to this Section shall be made by delivery to Lender of
a Notice of Borrowing (in the case of a new Revolving Loan that is to be a LIBOR Rate Loan) or LIBOR Notice (in the case of a conversion
to, or continuation of, a LIBOR Rate Loan) executed by Administrative Borrower received by Lender in writing or via an Approved
Electronic Communication before the LIBOR Deadline, or by telephonic notice received by Lender before the LIBOR Deadline (to be
confirmed by delivery to Lender of a LIBOR Notice received by Lender prior to 3:00 p.m. on the same day). 

 

    	 	5	 

     

    

 

(ii)         Each
LIBOR Notice and Notice of Borrowing with respect to a new Revolving Loan that is to be a LIBOR Rate Loan shall be irrevocable
and binding on Borrower. In connection with each LIBOR Rate Loan, Borrower shall indemnify, defend, and hold Lender harmless against
any loss, cost, or expense incurred by Lender as a result of (A) the payment of any principal of any LIBOR Rate Loan other than
on the last day of an Interest Period applicable thereto (including as a result of an Event of Default), (B) the conversion of
any LIBOR Rate Loan other than on the last day of the Interest Period applicable thereto, or (C) the failure to borrow, convert,
continue or prepay any LIBOR Rate Loan on the date specified in any LIBOR Notice or Notice of Borrowing delivered pursuant hereto
(such losses, costs, and expenses, collectively, “Funding Losses”). Funding Losses shall be deemed to
equal the amount determined by Lender to be the excess, if any, of (1) the amount of interest that would have accrued on the principal
amount of such LIBOR Rate Loan had such event not occurred, at the LIBOR Rate that would have been applicable thereto, for the
period from the date of such event to the last day of the then current Interest Period therefor (or, in the case of a failure to
borrow, convert, or continue, for the period that would have been the Interest Period therefor), minus (2) the amount of
interest that would accrue on such principal amount for such period at the interest rate which Lender would be offered were it
to be offered, at the commencement of such period, Dollar deposits of a comparable amount and period in the London interbank market.
A certificate of Lender delivered to Borrower setting forth any amount or amounts that Lender is entitled to receive pursuant to
this Section 2.6 shall be conclusive absent manifest error.

 

(iii)        Borrower
shall have not more than 5 LIBOR Rate Loans in effect at any given time. Borrower only may exercise the LIBOR Option for LIBOR
Rate Loans of at least $250,000 and integral multiples of $50,000 in excess thereof. 

 

(c)          Borrower
may prepay LIBOR Rate Loans at any time; provided, that in the event that LIBOR Rate Loans are prepaid on any date
that is not the last day of the Interest Period applicable thereto for any reason, including early termination of the term of this
Agreement or acceleration of all or any portion of the Obligations pursuant to the terms hereof, Borrower shall indemnify, defend,
and hold Lender and its Participants harmless against any and all Funding Losses in accordance with clause (b)(ii) above.

 

(d)          (i)          The
LIBOR Rate may be adjusted by Lender on a prospective basis to take into account any additional or increased costs to Lender of
maintaining or obtaining any eurodollar deposits or increased costs, in each case, due to changes in applicable law occurring subsequent
to the commencement of the then applicable Interest Period, including any Change in Law (including any changes in tax laws (except
changes of general applicability in corporate income tax laws) and changes in the reserve requirements imposed by the Board of
Governors), which additional or increased costs would increase the cost of funding or maintaining loans bearing interest at the
LIBOR Rate. In any such event, Lender shall give Borrower notice of such a determination and adjustment not less than ten days
prior to the effective date thereof and, upon its receipt of the notice from Lender, Borrower may, by notice to Lender (x) require
Lender to furnish to Borrower a statement setting forth in reasonable detail the basis for adjusting such LIBOR Rate and the method
for determining the amount of such adjustment, or (y) repay the LIBOR Rate Loans of Lender with respect to which such adjustment
is made (together with any amounts due under Section 2.6(b)(ii)).

 

(ii)         In
the event that any change in market conditions or any Change in Law shall, at any time after the date hereof, in the reasonable
opinion of Lender, make it unlawful or impractical for Lender to fund or maintain LIBOR Rate Loans or to continue such funding
or maintaining, or to determine or charge interest rates at the LIBOR Rate, Lender shall give notice of such changed circumstances
to Borrower and (x) in the case of any LIBOR Rate Loans that are outstanding, the date specified in Lender’s notice shall
be deemed to be the last day of the Interest Period of such LIBOR Rate Loans, and interest upon the LIBOR Rate Loans of Lender
thereafter shall accrue interest at the rate then applicable to Base Rate Loans, and (y) Borrower shall not be entitled to elect
the LIBOR Option until Lender determines that it would no longer be unlawful or impractical to do so.

 

(e)          Anything
to the contrary contained herein notwithstanding, neither Lender nor any of its Participants is required actually to acquire eurodollar
deposits to fund or otherwise match fund any Obligation as to which interest accrues at the LIBOR Rate. The provisions of this
Section shall apply as if Lender or its Participants had match funded any Obligation as to which interest is accruing at the LIBOR
Rate by acquiring eurodollar deposits for each Interest Period in the amount of the LIBOR Rate Loans.

 

    	 	6	 

     

    

 

2.7         Capital
Requirements.

 

(a)          If,
after the date hereof, Lender determines that (i) any Change in Law regarding capital or reserve requirements for banks or bank
holding companies, or (ii) compliance by Lender, or its parent bank holding company, with any guideline, request or directive of
any Governmental Authority regarding capital adequacy (whether or not having the force of law), has the effect of reducing the
return on Lender’s or such holding company’s capital as a consequence of Lender’s commitments hereunder to a
level below that which Lender, or such holding company, could have achieved but for such Change in Law or compliance (taking into
consideration Lender’s or such holding company’s then existing policies with respect to capital adequacy and assuming
the full utilization of such entity’s capital) by any amount deemed by Lender to be material, then Lender may notify Borrower
thereof. Following receipt of such notice, Borrower agrees to pay Lender on demand the amount of such reduction of return of capital
as and when such reduction is determined, payable within 90 days after presentation by Lender of a statement in the amount and
setting forth in reasonable detail Lender’s calculation thereof and the assumptions upon which such calculation was based
(which statement shall be deemed true and correct absent manifest error). In determining such amount, Lender may use any reasonable
averaging and attribution methods. 

 

2.8          Further
Obligations; Maximum Lawful Rate. Notwithstanding anything to the contrary herein or elsewhere,
if at any time the rate of interest payable or other amounts hereunder or under any other Loan Document (the “Stated
Rate”) would exceed the highest rate of interest or other amount permitted under any applicable law to be charged
(the “Maximum Lawful Rate”), then for so long as the Maximum Lawful Rate would be so exceeded, the rate
of interest and other amounts payable shall be equal to the Maximum Lawful Rate; provided, that if at any time thereafter
the Stated Rate is less than the Maximum Lawful Rate, Borrower shall, to the extent permitted by applicable law, continue to pay
interest and such other amounts at the Maximum Lawful Rate until such time as the total interest and other such amounts received
is equal to the total interest and other such amounts which would have been received had the Stated Rate been (but for the operation
of this provision) the interest rate payable or such other amounts payable. Thereafter, the interest rate and such other amounts
payable shall be the Stated Rate unless and until the Stated Rate again would exceed the Maximum Lawful Rate, in which event this
provision shall again apply. In no event shall the total interest or other such amounts received by Lender exceed the amount which
it could lawfully have received had the interest and other such amounts been calculated for the full term hereof at the Maximum
Lawful Rate. If, notwithstanding the prior sentence, Lender has received interest or other such amounts hereunder in excess of
the Maximum Lawful Rate, such excess amounts shall be applied to the reduction of the principal balance of the Loans or to other
Obligations (other than interest) payable hereunder, and if no such principal or other Obligations are then outstanding, such excess
or part thereof remaining shall be paid to Borrower. In computing interest payable with reference to the Maximum Lawful Rate applicable
to any Lender, such interest shall be calculated at a daily rate equal to the Maximum Lawful Rate divided by the number of days
in the year in which such calculation is made.

 

		3.	SECURITY INTEREST GRANT / POSSESSORY COLLATERAL / FURTHER
ASSURANCES.

 

3.1           Grant
of Security Interest. To secure the full payment and performance of all of the Obligations, each Loan Party Obligor hereby
assigns to Lender and grants to Lender a continuing security interest in all property of each Loan Party Obligor, whether tangible
or intangible, real or personal, now or hereafter owned, existing, acquired or arising and wherever now or hereafter located, and
whether or not eligible for lending purposes, including: (i) all Accounts (whether or not Eligible Accounts) and all Goods whose
sale, lease or other disposition by any Loan Party Obligor has given rise to Accounts and have been returned to, or repossessed
or stopped in transit by, any Loan Party Obligor; (ii) all Chattel Paper (including Electronic Chattel Paper), Instruments, Documents,
and General Intangibles (including all patents, patent applications, trademarks, trademark applications, trade names, trade secrets,
goodwill, copyrights, copyright applications, registrations, licenses, software, franchises, customer lists, tax refund claims,
claims against carriers and shippers, guarantee claims, contracts rights, payment intangibles, security interests, security deposits
and rights to indemnification); (iii) all Inventory; (iv) all Goods (other than Inventory), including Equipment, Farm Products,
Health-Care-Insurance Receivables, vehicles, and Fixtures; (v) all Investment Property, including all rights, privileges, authority,
and powers of each Loan Party Obligor as an owner or as a holder of Pledged Equity, including all economic rights, all control
rights, authority and powers, and all status rights of each Loan Party Obligor as a member, equity holder or shareholder, as applicable,
of each Issuer; (vi) all Deposit Accounts, bank accounts, deposits and cash; (vii) all Letter-of-Credit Rights; (viii) all Commercial
Tort Claims; (ix) all Supporting Obligations; (x) any other property of any Loan Party Obligor now or hereafter in the possession,
custody or control of Lender or any agent or any parent, Affiliate or Subsidiary of Lender or any Participant with Lender in the
Loans, for any purpose (whether for safekeeping, deposit, collection, custody, pledge, transmission or otherwise); and (xi) all
additions and accessions to, substitutions for, and replacements, products and Proceeds of the foregoing property, including proceeds
of all insurance policies insuring the foregoing property, and all of each Loan Party Obligor’s books and records relating
to any of the foregoing and to any Loan Party Obligor’s business.

 

    	 	7	 

     

    

 

3.2           Possessory
Collateral. Promptly, but in any event no later than five Business Days after any Loan Party
Obligor’s receipt of any portion of the Collateral evidenced by an agreement, Instrument or Document, including any Tangible
Chattel Paper and any Investment Property consisting of certificated securities, such Loan Party Obligor shall deliver the original
thereof to Lender together with an appropriate endorsement or other specific evidence of assignment thereof to Lender (in form
and substance reasonably acceptable to Lender). If an endorsement or assignment of any such items shall not be made for any reason,
Lender is hereby irrevocably authorized, as attorney and agent-in-fact (coupled with an interest) for each Loan Party Obligor,
to endorse or assign the same on such Loan Party Obligor’s behalf.

 

3.3           Further
Assurances. Each Loan Party Obligor shall, at its own cost and expense, promptly and duly take,
execute, acknowledge and deliver (or cause such other applicable Person to take, execute, acknowledge and deliver) all such further
acts, documents, agreements and instruments as may from time to time be necessary or desirable as determined by Lender or as Lender
may from time to time reasonably require in order to (a) carry out the intent and purposes of the Loan Documents and the transactions
contemplated thereby, (b) establish, create, preserve, protect and perfect a first priority Lien (subject only to Permitted Liens)
in favor of Lender in all real and personal property (wherever located) from time to time owned by the Loan Party Obligors and
in all capital stock and other equity interests from time to time issued by the Loan Party Obligors (other than Parent), (c) cause
Parent and each Subsidiary of Parent (other than INDCO and its Subsidiaries) which is not a CFC to guarantee all of the Obligations,
all pursuant to documentation that is in form and substance reasonably satisfactory to Lender, and (d) facilitate the collection
of the Collateral. Without limiting the foregoing, each Loan Party Obligor shall, at its own cost and expense, promptly and duly
take, execute, acknowledge and deliver (or cause such other applicable Person to take, execute, acknowledge and deliver) to Lender
all promissory notes, security agreements, agreements with landlords, mortgagees and processors and other bailees, subordination
and intercreditor agreements and other agreements, instruments and documents, in each case in form and substance reasonably acceptable
to Lender, as Lender may request from time to time to perfect, protect, and maintain Lender’s security interests in the Collateral,
including the required priority thereof, and to fully carry out the transactions contemplated by the Loan Documents.

 

3.4           UCC
Financing Statements. Each Loan Party Obligor authorizes Lender to file, transmit, or communicate,
as applicable, from time to time, Uniform Commercial Code financing statements, along with amendments and modifications thereto,
in all filing offices selected by Lender, listing such Loan Party Obligor as the debtor and Lender as the secured party, and describing
the collateral covered thereby in such manner as Lender may elect, including using descriptions such as “all personal property
of debtor” or “all assets of debtor” or words of similar effect, in each case without such Loan Party Obligor’s
signature. Each Loan Party Obligor also hereby ratifies its authorization for Lender to have filed in any filing office any financing
statements filed prior to the date hereof.

 

		4.	CERTAIN PROVISIONS REGARDING ACCOUNTS, INVENTORY, COLLECTIONS,
APPLICATIONS OF PAYMENTS, INSPECTION RIGHTS, AND APPRAISALS.

 

4.1           Lock
Boxes and Blocked Accounts. Each Loan Party Obligor hereby represents and warrants that all Deposit Accounts and all other
depository and other accounts maintained by each Loan Party Obligor as of the Closing Date are described in Section 3 of the Disclosure
Schedule, which description includes for each such account the name of the Loan Party Obligor maintaining such account, the name
of the financial institution at which such account is maintained, the account number, and the purpose of such account. Subject
to the provisions of this Section 4.1, as of the Closing Date, each Borrower will maintain their primary domestic commercial checking
accounts with the Lender, including, without limitation, the Administrative Borrower’s operating account, and after the Closing
Date, no Loan Party Obligor shall open any new Deposit Accounts or any other depositary or other accounts without the prior written
consent of Lender and without updating Section 3 of the Disclosure Schedule to reflect such Deposit Accounts or other accounts,
as applicable. Notwithstanding the foregoing, the Loan Party Obligors may, for a period not to exceed 45 days after the Closing
Date, maintain the Designated Deposit Accounts subject to the terms hereof. The outstanding principal balance of each Designated
Deposit Account (other than a Designated Deposit Account which is a Restricted Account) shall not, at any time exceed $50,000,
and the Loan Party Obligors shall, at Lender’s request, provide the Lender with written evidence to confirm the same. Not
later than the 45th day after the Closing Date, Loan Party Obligors shall provide Lender with evidence that such Designated
Deposit Accounts have been closed. No Deposit Accounts or other accounts of any Loan Party Obligor shall at any time constitute
Restricted Accounts other than accounts expressly indicated on Section 3 of the Disclosure Schedule as being Restricted Accounts
(and each Loan Party Obligor hereby represents, warrants and covenants that each such account shall at all times meet the requirements
set forth in the definition of Restricted Account to qualify as a Restricted Account). Each Loan Party Obligor will, at its expense,
establish (and revise from time to time as Lender may reasonably require) procedures acceptable to Lender, in Lender’s Permitted
Discretion, for the collection of checks, wire transfers and all other proceeds of all of such Loan Party Obligor’s Accounts
and other Collateral (“Collections”), which shall include (i) directing all Account Debtors to send all
Account proceeds directly to a post office box designated by Lender either in the name of such Loan Party Obligor (but as to which
Lender has exclusive access) or, at Lender’s option, in the name of Lender (a “Lock Box”), (ii)
depositing all Collections received by such Loan Party Obligor into one or more bank accounts maintained in the name of such Loan
Party Obligor (but as to which Lender has exclusive access) or, at Lender’s option, in the name of Lender (each, a “Blocked
Account”), under an arrangement reasonably acceptable to Lender with Santander Bank, N.A. or another depository bank
reasonably acceptable to Lender, pursuant to which all funds deposited into each Blocked Account are to be transferred to Lender
in such manner, and with such frequency, as Lender shall specify, or (iii) a combination of the foregoing. Each Loan Party Obligor
agrees to execute, and to cause its depository banks and other account holders to execute, such Lock Box and Blocked Account control
agreements and other documentation as Lender shall reasonably require from time to time in connection with the foregoing, all in
form and substance reasonably acceptable to Lender, and in any event such arrangements and documents must be in place on the Closing
Date with respect to accounts in existence on the Closing Date, or prior to any such account being opened with respect to any such
account opened after such date, in each case excluding Restricted Accounts. Prior to the Closing Date, Borrower shall deliver to
Lender a complete and executed Authorized Accounts form regarding Borrower’s operating account(s) into which the proceeds
of Loans are to be paid in the form of Exhibit D annexed hereto.

 

    	 	8	 

     

    

 

4.2           Application
of Payments. All amounts paid to or received by Lender in respect of the monetary Obligations,
from whatever source (whether from Borrower or any other Loan Party Obligor pursuant to such other Loan Party Obligor’s guaranty
of the Obligations, any realization upon any Collateral, or otherwise), shall, unless otherwise directed by Borrower with respect
to any particular payment (unless an Event of Default shall then be continuing, in which event Lender may disregard Borrower’s
direction), be applied by Lender to the Obligations in such order as Lender may elect, and absent such election shall be applied
as follows:

 

(i)          FIRST,
to reimburse Lender for all out-of-pocket costs and expenses, and all indemnified losses, incurred by Lender which are reimbursable
to Lender in accordance with this Agreement or any of the other Loan Documents,

 

(ii)         SECOND,
to any accrued but unpaid interest on any Protective Advances,

 

(iii)        THIRD,
to the outstanding principal of any Protective Advances,

 

(iv)        FOURTH,
to any accrued but unpaid fees owing to Lender under this Agreement and/or any other Loan Document,

 

(v)         FIFTH,
to any unpaid accrued interest on the Obligations,

 

(vi)        SIXTH,
to the outstanding principal of the Revolving Loans, and, to the extent required by Lender, to cash collateralize the Letter of
Credit Balance as provided for herein, and

 

(vii)       SEVENTH,
to the payment of any other outstanding Obligations; and after payment in full in cash of all of the outstanding monetary Obligations,
any further amounts paid to or received by Lender in respect of the Obligations (so long as no monetary Obligations are outstanding)
shall be paid over to Borrower or such other Person(s) as may be legally entitled thereto. For purposes of determining the Borrowing
Base, such amounts will be credited to the Loan Account and the Collateral balances to which they relate upon Lender’s receipt
of an advice or other confirmation that such items have been received by Lender, in each case subject to final payment and collection.

 

4.3           Notification;
Verification. Lender or its designee may, from time to time, (a) (1) so long as no Default
or Event of Default has occurred, solely in connection with each field examination, and (2) after a Default or Event of Default
has occurred: (i) verify directly with the Account Debtors of the Loan Party Obligors (or by any manner and through any medium
Lender considers advisable) the validity, amount and other matters relating to the Accounts and Chattel Paper of the Loan Party
Obligors, by means of mail, telephone or otherwise, either in the name of the applicable Loan Party Obligor or Lender or such other
name as Lender may choose, and (ii) notify Account Debtors of the Loan Party Obligors that Lender has a security interest in the
Accounts of the Loan Party Obligors; and (b) after the occurrence of a Default or Event of Default, (i) direct such Account Debtors
to make payment thereof directly to Lender, each such notification to be sent on the letterhead of such Loan Party Obligor and
substantially in the form of Exhibit E annexed hereto, and (ii) demand, collect or enforce payment of any Accounts and Chattel
Paper (but without any duty to do so). Each Loan Party Obligor hereby authorizes Account Debtors to make payments directly to Lender
and to rely on notice from Lender without further inquiry. Lender may on behalf of each Loan Party Obligor endorse all items of
payment received by Lender that are payable to such Loan Party Obligor for the purposes described above.

 

    	 	9	 

     

    

 

4.4           Power
of Attorney. Each Loan Party Obligor hereby grants to Lender an irrevocable power of attorney,
coupled with an interest, authorizing and permitting Lender (acting through any of its officers, employees, attorneys or agents),
at any time (whether or not a Default or Event of Default has occurred and is continuing and with or without notice to such Loan
Party Obligor, except, in each case, as expressly provided below), at Lender’s option, but without obligation, and at each
Loan Party Obligor’s expense, to do any or all of the following, in such Loan Party Obligor’s name or otherwise: (i)
upon any Loan Party Obligor’s failure to do so, execute on behalf of such Loan Party Obligor any documents that Lender may,
in its sole discretion, deem advisable in order to perfect, protect and maintain Lender’s security interests, and priority
thereof, in the Collateral or to fully consummate all the transactions contemplated by this Agreement and the other Loan Documents
(including such financing statements and continuation financing statements, and amendments or other modifications thereto, as Lender
shall deem necessary or appropriate); (ii) after the occurrence of a Default or Event of Default, in connection with the exercise
by Lender of any remedies hereunder or under any other Loan Document in connection with an Event of Default, execute on behalf
of such Loan Party Obligor any document exercising, transferring or assigning any option to purchase, sell or otherwise dispose
of or lease (as lessor or lessee) any real or personal property which is part of the Collateral or in which Lender has an interest;
(iii) after the occurrence of a Default or Event of Default, execute on behalf of such Loan Party Obligor any invoices relating
to any Accounts, any draft against any Account Debtor, any proof of claim in bankruptcy, any notice of Lien or claim, and any assignment
or satisfaction of mechanic’s, materialman’s or other Lien; (iv) after the occurrence of a Default or Event of Default,
execute on behalf of such Loan Party Obligor any notice to any Account Debtor; (v) receive and otherwise take control in any manner
of any cash or non-cash items of payment or Proceeds of Collateral; (vi) except pursuant to any Lock Box arrangement, after the
occurrence of a Default or Event of Default, endorse such Loan Party Obligor’s name on all checks and other forms of remittances
received by Lender; (vii) pay, contest or settle any Lien, charge, encumbrance, security interest and adverse claim in or to any
of the Collateral, or any judgment based thereon, or otherwise take any action to terminate or discharge the same; (viii) after
the occurrence of a Default or Event of Default, grant extensions of time to pay, compromise claims relating to, and settle Accounts,
Chattel Paper and General Intangibles for less than face value and execute all releases and other documents in connection therewith;
(ix) pay any sums required on account of such Loan Party Obligor’s taxes or to secure the release of any Liens therefor;
(x) with notice to Borrower prior to the occurrence of a Default or Event of Default, but without notice to Borrower after the
occurrence of a Default or Event of Default, pay any amounts necessary to obtain, or maintain in effect, any of the insurance described
in Section 5.14; (xi) settle and adjust, and give releases of, any insurance claim that relates to any of the Collateral and obtain
payment therefor; (xii) instruct any third party having custody or control of any Collateral or books or records belonging to,
or relating to, such Loan Party Obligor to give Lender the same rights of access and other rights with respect thereto as Lender
has under this Agreement or any other Loan Document; (xiii) after the occurrence of a Default or Event of Default, change the address
for delivery of such Loan Party Obligor’s mail and receive and open all mail addressed to such Loan Party Obligor; (xiv)
after the occurrence of a Default or Event of Default, vote any right or interest with respect to any Investment Property; (xv)
endorse or assign to Lender on such Loan Party Obligor’s behalf any portion of the Collateral evidenced by an agreement,
Instrument or Document if an endorsement or assignment of any such items is not made by such Loan Party Obligor pursuant to Section
3.2; and (xvi) after the occurrence of a Default or Event of Default, instruct any Account Debtor to make all payments due to any
Loan Party Obligor directly to Lender. Any and all sums paid, and any and all costs, expenses, liabilities, obligations and reasonable
attorneys’ fees incurred, by Lender with respect to the foregoing shall be added to and become part of the Obligations, shall
be payable on demand, and shall bear interest at a rate equal to the highest interest rate applicable to any of the Obligations.
Each Loan Party Obligor agrees that Lender’s rights under the foregoing power of attorney and/or any of Lender’s other
rights under this Agreement or the other Loan Documents shall not be construed to indicate that Lender is in control of the business,
management or properties of such Loan Party Obligor.

 

    	 	10	 

     

    

 

4.5           Disputes.
Each Loan Party Obligor shall promptly notify Lender of each dispute or claim relating to its Accounts and Chattel Paper involving
an amount in excess of $10,000. Each Loan Party Obligor agrees that it will not, without Lender’s prior written consent,
compromise or settle any of its Accounts or Chattel Paper for less than the full amount thereof, grant any extension of time for
payment of any of its Accounts or Chattel Paper, release (in whole or in part) any Account Debtor or other Person liable for the
payment of any of its Accounts or Chattel Paper or grant any credits, discounts, allowances, deductions, return authorizations
or the like with respect to any of its Accounts or Chattel Paper; except (unless otherwise directed by Lender during the existence
of a Default or an Event of Default) such Loan Party Obligor may take any of such actions in the ordinary course of its business
consistent with past practices, provided that Borrower promptly reports the same to Lender.

 

4.6           Invoices.
At Lender’s request, after the occurrence of a Default or Event of Default, each Loan Party Obligor will cause all invoices
and statements which it sends to Account Debtors or other third parties to be marked, in a manner satisfactory to Lender in its
Permitted Discretion, to reflect payment instructions, and upon the occurrence and during the continuation of an Event of Default,
Lender’s security interest therein.

 

4.7           Access
to Collateral, Books and Records. At reasonable times, Lender and its representatives or agents
shall have the right to inspect the Collateral, and the right to inspect, audit, examine and copy each Loan Party Obligor’s
books and records. Each Loan Party Obligor agrees to give Lender access to any or all of such Loan Party Obligor’s, and each
of its Subsidiaries’, premises to enable Lender to conduct such inspections, audits and examinations (including field examinations).
Such inspections, audits and examinations shall be at Borrower’s expense and the charge therefor shall be Lender’s
then current standard charge plus out-of-pocket expenses. Absent the existence of an Event of Default, no more than three
(3) such inspections, audits and examinations during the first twelve (12) month period following the Closing Date shall occur,
provided that, commencing with the second such period, the number of such inspections, audits and examinations shall
decrease from three (3) to two (2). Lender may, at Borrower’s expense, use each Loan Party Obligor’s personnel, computer
and other equipment, programs, printed output and computer readable media, supplies and premises for the collection, sale or other
disposition of Collateral to the extent Lender, in its sole discretion, deems appropriate during the existence of an Event of Default.
Each Loan Party Obligor hereby irrevocably authorizes all accountants and third parties to disclose and deliver to Lender, at Borrower’s
expense, all financial information, books and records, work papers, management reports and other information in their possession
regarding the Loan Party Obligors.

 

		5.	REPRESENTATIONS, WARRANTIES AND COVENANTS.

 

To induce Lender to enter
into this Agreement, each Loan Party Obligor represents, warrants and covenants as follows (it being understood and agreed that
(a) each such representation and warranty (i) will be made as of the date hereof and be deemed remade as of each date on which
any Loan is made or Letter of Credit is issued (except to the extent any such representation or warranty expressly relates only
to any earlier and/or specified date, in which case such representation or warranty will be made as of such earlier and/or specified
date), and (ii) shall not be affected by any knowledge of, or any investigation by, Lender, and (b) each such covenant shall continuously
apply with respect to all times commencing on the date hereof and continuing until the Termination Date):

 

5.1           Existence
and Authority. Each Loan Party Obligor is duly organized, validly existing and in good standing
under the laws of its jurisdiction of organization (which jurisdiction is identified in Section 1(a) of the Disclosure Schedule)
and is qualified to do business in each jurisdiction in which the operation of its business requires that it be qualified (which
each such jurisdiction is identified in Section 1(a) of the Disclosure Schedule), except where the failure to so qualify could
not reasonably be expected to have a Material Adverse Effect. Each Loan Party Obligor has all requisite power and authority to
own and operate its properties, to carry on its business as now conducted and as proposed to be conducted, to enter into the Loan
Documents to which it is a party and to carry out the transactions contemplated thereby. The execution, delivery and performance
by each Loan Party Obligor of this Agreement and all of the other Loan Documents to which such Loan Party Obligor is a party have
been duly and validly authorized, do not violate such Loan Party Obligor’s Organic Documents, or any law or any agreement
or instrument or any court order which is binding upon any Loan Party or its property, do not constitute grounds for acceleration
of any Indebtedness or obligation under any agreement or instrument which is binding upon any Loan Party or its property, and do
not require the consent of any Person. No Loan Party is required to obtain any government approval, consent, or authorization from,
or to file any declaration or statement with, any Governmental Authority in connection with or as a condition to the execution,
delivery or performance of any of the Loan Documents. This Agreement and each of the other Loan Documents have been duly executed
and delivered by, and are enforceable against, each of the Loan Party Obligors who have signed them, in accordance with their respective
terms, subject to the effects of bankruptcy, insolvency or laws related to creditor’s rights. Section 1(f) of the Disclosure
Schedule sets forth the ownership of Borrower and its Subsidiaries, and as of the Closing Date, the Parent.

 

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5.2         Names;
Trade Names and Styles. The name of each Loan Party Obligor set forth on Section 1(b) of the
Disclosure Schedule is its correct and complete legal name as of the date hereof, and no Loan Party Obligor has used any other
name at any time in the past five years, or at any time will use any other name, in any tax filing made in any jurisdiction. Listed
in Section 1(b) of the Disclosure Schedule are all prior names used by each Loan Party Obligor at any time in the past five years
and all of the present and prior trade names used by any Loan Party Obligor at any time in the past five years. Borrower shall
give Lender at least thirty days’ prior written notice (and will deliver an updated Section 1 (b) of the Disclosure Schedule
to reflect the same) before it or any other Loan Party Obligor changes its legal name or does business under any other name.

 

5.3         Title
to Collateral; Third Party Locations; Permitted Liens. Each Loan Party Obligor has, and at
all times will continue to have, good and, if applicable, marketable title to all of the Collateral. The Collateral now is, and
at all times will remain, free and clear of any and all Liens, except for Permitted Liens. Lender now has, and will at all times
continue to have, a first-priority perfected and enforceable security interest in all of the Collateral, subject only to the Permitted
Liens, and each Loan Party Obligor will at all times defend Lender and the Collateral against all claims of others. None of the
Collateral which is Equipment is, or will at any time, be affixed to any real property in such a manner, or with such intent, as
to become a fixture. Except for leases or subleases as to which Borrower has delivered to Lender a landlord’s waiver in form
and substance satisfactory to Lender, no Loan Party Obligor is or will be a lessee or sublessee under any real property lease or
sublease where Collateral is located. Except for warehouses as to which Borrower has delivered to Lender a warehouseman’s
waiver in form and substance satisfactory to Lender, no Loan Party Obligor is or will at any time be a bailor of any Goods with
an aggregate value in excess of $25,000 at any warehouse or otherwise. Prior to causing or permitting any Collateral with an aggregate
value in excess of $25,000 to at any time be located upon premises in which any third party (including any landlord, warehouseman,
or otherwise) has an interest, Borrower shall notify Lender and the applicable Loan Party Obligor shall cause each such third party
to execute and deliver to Lender, in form and substance reasonably acceptable to Lender, such waivers, collateral access agreements,
and subordinations as Lender shall specify, so as to, among other things, ensure that Lender’s rights in the Collateral are,
and will at all times continue to be, superior to the rights of any such third party and that Lender has access to such Collateral.
Each applicable Loan Party Obligor will keep at all times in full force and effect, and will comply at all times with all the terms
of, any lease of real property where any of the Collateral now or in the future may be located.

 

5.4         Accounts
and Chattel Paper. As of each date reported by Borrower, all Accounts which Borrower has then reported to Lender as then being
Eligible Accounts comply in all respects with the criteria for eligibility set forth in the definition of Eligible Accounts. All
such Accounts and Chattel Paper are genuine and in all respects what they purport to be, arise out of a completed, bona fide and
unconditional and non-contingent sale and delivery of goods or rendition of services by Borrower in the ordinary course of its
business and in accordance with the terms and conditions of all purchase orders, contracts or other documents relating thereto,
each Account Debtor thereunder had the capacity to contract at the time any contract or other document giving rise to such Accounts
and Chattel Paper were executed, and the transactions giving rise to such Accounts and Chattel Paper comply with all applicable
laws and governmental rules and regulations.

 

5.5         Electronic
Chattel Paper. To the extent that any Loan Party Obligor obtains or maintains any Electronic
Chattel Paper, such Loan Party Obligor shall at all times create, store and assign the record or records comprising the Electronic
Chattel Paper in such a manner that (i) a single authoritative copy of the record or records exists which is unique, identifiable
and except as otherwise provided below, unalterable, (ii) the authoritative copy identifies Lender as the assignee of the record
or records, (iii) the authoritative copy is communicated to and maintained by Lender or its designated custodian, (iv) copies or
revisions that add or change an identified assignee of the authoritative copy can only be made with the participation of Lender,
(v) each copy of the authoritative copy and any copy of a copy is readily identifiable as a copy that is not the authoritative
copy and (vi) any revision of the authoritative copy is readily identifiable as an authorized or unauthorized revision.

 

5.6         Capitalization;
Investment Property.

 

(a)          No
Loan Party Obligor, directly or indirectly, owns, or shall at any time own, any capital stock or other equity interests of any
other Person except (i) as set forth in Sections 1(f) and 1(g) of the Disclosure Schedule, which such Sections of the Disclosure
Schedule list all Investment Property owned by each Loan Party Obligor, and (ii) as permitted by Section 5.27(a).

 

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(b)          None
of the Pledged Equity has been issued or otherwise transferred in violation of the Securities Act, or other applicable laws of
any jurisdiction to which such issuance or transfer may be subject.

 

(c)          The
Pledged Equity pledged by each Loan Party Obligor hereunder constitutes all of the issued and outstanding equity interests of each
Issuer owned by such Loan Party Obligor.

 

(d)          All
of the Pledged Equity has been duly and validly issued and is fully paid and non-assessable, in each case, to the extent applicable,
and the holders thereof are not entitled to any preemptive, first refusal, or other similar rights. There are no outstanding options,
warrants or similar agreements, documents, or instruments with respect to any of the Pledged Equity.

 

(e)          Each
Loan Party Obligor has caused each Issuer to amend or to otherwise modify its Organic Documents, books, records, and related agreements,
documents, and instruments, as applicable, to reflect the rights and interests of Lender hereunder, and to the extent required
to enable and empower Lender to exercise and enforce its rights and remedies hereunder in respect of the Pledged Equity and other
Investment Property.

 

(f)          Each
Loan Party Obligor will take any and all actions reasonably required or requested by Lender, from time to time, to (i) cause Lender
to obtain exclusive control of any Investment Property in a manner acceptable to Lender and (ii) obtain from any Issuers and such
other Persons as Lender shall specify, for the benefit of Lender, written confirmation of Lender’s exclusive control over
such Investment Property and take such other actions as Lender may reasonably request to perfect Lender’s security interest
in any Investment Property. For purposes of this Section 5.6, Lender shall have exclusive control of Investment Property if (A)
pursuant to Section 3.2, such Investment Property consists of certificated securities and the applicable Loan Party Obligor delivers
such certificated securities to Lender (with all appropriate endorsements), (B) such Investment Property consists of uncertificated
securities and either (x) the applicable Loan Party Obligor delivers such uncertificated securities to Lender or (y) the Issuer
thereof agrees, pursuant to documentation in form and substance satisfactory to Lender, that it will comply with instructions originated
by Lender without further consent by the applicable Loan Party Obligor, and (C) such Investment Property consists of security entitlements
and either (x) Lender becomes the entitlement holder thereof or (y) the appropriate securities intermediary agrees, pursuant to
documentation in form and substance satisfactory to Lender, that it will comply with entitlement orders originated by Lender without
further consent by the applicable Loan Party Obligor. Each Loan Party Obligor that is a limited liability company or a partnership
hereby represents and warrants that it has not, and at no time will, elect pursuant to the provisions of Section 8-103 of the UCC
to provide that its equity interests are securities governed by Article 8 of the UCC.

 

(g)          No
Loan Party owns, or has any present intention of acquiring, any “margin security” or any “margin stock”
within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System (herein called “margin
security” and “margin stock”). None of the proceeds of the Loans will be used, directly or indirectly, for the
purpose of purchasing or carrying, or for the purpose of reducing or retiring any Indebtedness which was originally incurred to
purchase or carry, any margin security or margin stock or for any other purpose which might constitute the transactions contemplated
hereby a “purpose credit” within the meaning of said Regulations T, U or X, or cause this Agreement to violate any
other regulation of the Board of Governors of the Federal Reserve System or the Exchange Act, or any rules or regulations promulgated
under such statutes.

 

(h)          No
Loan Party Obligor shall vote to enable, or take any other action to cause or to permit, any Issuer to issue any equity interests
of any nature, or to issue any other securities or interests convertible into or granting the right to purchase or exchange for
any equity interests of any nature of any Issuer.

 

(i)          No
Loan Party Obligor shall take, or fail to take, any action that would in any manner impair the value or the enforceability of Lender’s
Lien on any of such Loan Party Obligor’s Investment Property, or any of Lender’s rights or remedies under this Agreement
or any other Loan Document with respect to any such Investment Property.

 

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(j)          In
the case of any Loan Party Obligor which is an Issuer, such Issuer agrees that the terms of Section 7.3(g)(iii) of this Agreement
shall apply to such Loan Party Obligor with respect to all actions that may be required of it pursuant to such Section 7.3(g)(iii)
regarding the Investment Property issued by it.

 

5.7         Commercial
Tort Claims. No Loan Party Obligor, as of the date hereof, has any Commercial Tort Claims pending
other than those listed in Section 2 of the Disclosure Schedule, and each Loan Party Obligor shall promptly (but in any case no
later than five Business Days thereafter) notify Lender in writing upon incurring or otherwise obtaining a Commercial Tort Claim
after the date hereof against any third party in excess of $100,000. Such notice shall constitute such Loan Party Obligor’s
authorization to amend such Section 2 to add such Commercial Tort Claim and shall automatically be deemed to amend such Section
2 to include such Commercial Tort Claim.

 

5.8         State
of Organization; Location of Collateral. Sections 1(c) and 1(d) of the Disclosure Schedule
set forth (i) each place of business of each Loan Party Obligor (including its chief executive office), (ii) all locations where
all Inventory, Equipment (other than Equipment out for repair and vehicles) and other Collateral with an aggregate value in excess
of $25,000 owned by each Loan Party Obligor is kept, and (iii) whether each such Collateral location or place of business (including
each Loan Party Obligor’s chief executive office) is owned by a Loan Party or leased (and if leased, specifies the complete
name and notice address of each lessor). No Collateral with an aggregate value in excess of $25,000 (other than Accounts owing
by foreign Account Debtors) is located outside the United States or in the possession of any lessor, bailee, warehouseman or consignee,
except as expressly indicated in Sections 1(c) and 1(d) of the Disclosure Schedule. Each Loan Party Obligor will give Lender at
least thirty days’ prior written notice before changing its state of organization, opening any additional place of business
where any Collateral is located, changing its chief executive office or the location of its books and records, or moving any of
the Collateral to a location other than one of the locations set forth in Sections 1(c) and 1(d) of the Disclosure Schedule, and
will execute and deliver all financing statements, landlord waivers, collateral access agreements, mortgages, and all other agreements,
instruments and documents which Lender shall require in connection therewith prior to making such change, all in form and substance
reasonably satisfactory to Lender. Without the prior written consent of Lender, no Loan Party Obligor will at any time (x) change
its state of organization or (y) allow any Collateral with an aggregate value in excess of $25,000 (other than Accounts owing by
foreign Account Debtors) to be located outside of the continental United States.

 

5.9         Financial
Statements and Reports; Solvency.

 

(a)          All
financial statements delivered to Lender by or on behalf of any Loan Party Obligor have been, and at all times will be, prepared
in conformity with GAAP and completely and in all material respects fairly reflect the financial condition of the Loan Party Obligor
covered thereby, at the times and for the periods therein stated.

 

(b)          As
of the Closing Date (after giving effect to the Loans and Letters of Credit to be made or issued on such date, and the consummation
of the transactions contemplated hereby), and as of each other day that any Loan or Letter of Credit is made or issued (after giving
effect thereof), (i) the fair saleable value of all of the assets and properties of each Loan Party Obligor, individually, exceeds
the aggregate liabilities and Indebtedness of each such Loan Party Obligor (including contingent liabilities), (ii) each Loan Party
Obligor, individually, is solvent and able to pay its debts as they come due, (iii) each Loan Party Obligor, individually, has
sufficient capital to carry on its business as now conducted and as proposed to be conducted, (iv) no Loan Party is contemplating
either the liquidation of all or any substantial portion of its assets or property, or the filing of any petition under any state,
federal, or other bankruptcy or insolvency law, and (v) no Loan Party Obligor has knowledge of any Person contemplating the filing
of any such petition against any Loan Party Obligor.

 

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5.10         Tax
Returns and Payments; Pension Contributions. Each Loan Party Obligor has timely filed all tax
returns and reports required by applicable law, has timely paid all applicable federal and state income Taxes and other material
Taxes, assessments, deposits and contributions owing by such Loan Party Obligor and will timely pay all such items in the future
as they became due and payable. Each Loan Party Obligor may, however, defer payment of any contested taxes; provided,
that such Loan Party Obligor (i) in good faith contests its obligation to pay such Taxes by appropriate proceedings promptly and
diligently instituted and conducted; (ii) notifies Lender in writing of the commencement of, and any material development
in, the proceedings; (iii) posts bonds or takes any other steps required to keep the contested taxes from becoming a Lien upon
any of the Collateral; (iv) maintains adequate reserves therefor in conformity with GAAP. No Loan Party Obligor has received written
notice from any tax authority of any claims or adjustments proposed for any prior tax years that could result in additional material
Taxes becoming due and payable by any Loan Party, nor does any Loan Party Obligor have knowledge of any such proposed claims or
adjustments based upon contact with a Tax authority. Each Plan is in compliance in all material respects with the applicable provisions
of ERISA, the Code and other applicable laws. Each Plan that is intended to be a qualified plan under Section 401(a) of the Code
has received a favorable determination letter or opinion letter from the Internal Revenue Service to the effect that the form of
such Plan is qualified under Section 401(a) of the Code and the trust related thereto has been determined by the Internal Revenue
Service to be exempt from federal income tax under Section 501(a) of the Code, or an application for such a letter is currently
being processed by the Internal Revenue Service. To the knowledge of each Loan Party Obligor, nothing has occurred that would prevent
or cause the loss of such tax-qualified status. There are no pending or, to the knowledge of any Loan Party Obligor, threatened
claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that could reasonably be expected
to result in liabilities individually or in the aggregate in excess of $10,000. There has been no prohibited transaction or violation
of the fiduciary responsibility rules with respect to any Plan that has resulted or could reasonably be expected to result in liabilities
of any Loan Party individually or in the aggregate on any Loan Party in excess of $10,000. No ERISA Event has occurred, and no
Loan Party is aware of any fact, event or circumstance that could reasonably be expected to constitute or result in an ERISA Event
with respect to any Pension Plan, in each case that could reasonably be expected to result in liabilities individually or in the
aggregate in excess of $10,000. Each Loan Party Obligor and each ERISA Affiliate has met all applicable requirements under the
Pension Funding Rules in respect of each Pension Plan, and no waiver of the minimum funding standards under the Pension Funding
Rules has been applied for or obtained, in each case except as could not reasonably be expected to result in liabilities individually
or in the aggregate to the Loan Party Obligors in excess of $10,000. As of the most recent valuation date for any Pension Plan,
the funding target attainment percentage (as defined in Section 430(d)(2) of the Code) is 60% or higher and no Loan Party Obligor
knows of any facts or circumstances that could reasonably be expected to cause the funding target attainment percentage for any
such plan to drop below 60% as of the most recent valuation date. No Loan Party Obligor nor any ERISA Affiliate has incurred any
liability to the PBGC other than for the payment of premiums, and there are no premium payments which have become due that are
unpaid, except as could not reasonably be expected to result in liabilities individually or in the aggregate to the Loan Obligors
in excess of $10,000. No Loan Party Obligor nor any ERISA Affiliate has engaged in a transaction that could be subject to Section
4069 or Section 4212(c) of ERISA except as could not reasonably be expected to result in liabilities individually or in the aggregate
to the Loan Parties in excess of $10,000. No Pension Plan has been terminated by the plan administrator thereof nor by the PBGC,
and no event or circumstance has occurred or exists that could reasonably be expected to cause the PBGC to institute proceedings
under Title IV of ERISA to terminate any Pension Plan except as could not reasonably be expected to result in liabilities individually
or in the aggregate to the Loan Party Obligors in excess of $10,000.

 

5.11       Compliance
with Laws; Intellectual Property; Licenses.

 

(a)          Each
Loan Party Obligor has complied, and will continue at all times to comply, with all provisions of all applicable laws and regulations,
including those relating to the ownership of real or personal property, the conduct and licensing of each Loan Party Obligor’s
business, the payment and withholding of Taxes, ERISA and other employee matters, and safety and environmental matters, except
to the extent the non-compliance therewith could not reasonably be expected to have a Material Adverse Effect.

 

(b)          No
Loan Party Obligor has received written notice of default or violation, nor is any Loan Party Obligor in default or violation,
with respect to any judgment, order, writ, injunction, decree, demand or assessment issued by any court or any federal, state,
local, municipal or other Governmental Authority relating to any aspect of any Loan Party Obligor’s business, affairs, properties
or assets. No Loan Party Obligor has received written notice of or been charged with, or is, to the knowledge of any Loan Party
Obligor, under investigation with respect to, any violation in any material respect of any provision of any applicable law.

 

(c)          No
Loan Party Obligor owns any registered Intellectual Property as of the date hereof, except as set forth in Section 4 of the Disclosure
Schedule. Except as set forth in Section 4 of the Disclosure Schedule, none of the Intellectual Property owned by any Loan Party
Obligor is the subject of any licensing or franchise agreement pursuant to which such Loan Party Obligor is the licensor or franchisor.
Each Loan Party Obligor shall promptly (but in any event within thirty (30) days thereafter) notify Lender in writing of any additional
registered Intellectual Property rights acquired or arising after the date hereof and shall submit to Lender a supplement to Section
4 of the Disclosure Schedule to reflect such additional rights (provided that such Loan Party Obligor’s failure
to do so shall not impair Lender’s security interest therein). Each Loan Party Obligor shall execute a separate security
agreement granting Lender a security interest in such Intellectual Property (whether owned on the date hereof or thereafter), in
form and substance reasonably acceptable to Lender and suitable for registering such security interest in such Intellectual Property
with the United States Patent and Trademark Office or United States Copyright Office, as applicable (provided that
such Loan Party Obligor’s failure to do so shall not impair Lender’s security interest therein). Each Loan Party Obligor
owns or has, and will at all times continue to own or have, the valid right to use all material patents, trademarks, copyrights,
software, computer programs, equipment designs, network designs, equipment configurations, technology and other Intellectual Property
used, marketed and sold in such Loan Party Obligor’s business, and each Loan Party Obligor is in compliance, and will continue
at all times to comply, in all material respects with all material licenses, user agreements and other such agreements regarding
the use of Intellectual Property. As of the date hereof, no Loan Party Obligor has any knowledge that, or has received any notice
claiming that, any of such Intellectual Property infringes upon or violates the rights of any other Person.

 

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(d)          Each
Loan Party Obligor (i) has each Federal Maritime Commission (“FMC”) license that is required to operate
its business as currently being operated, and has undertaken each registration, publishes each tariff and has in place each bond
required by the FMC with respect to its business operations, (ii) is in full compliance with all applicable requirements of the
United States Shipping Act of 1984, as amended, FMC regulations and other United States laws and regulations applicable to it with
respect to water, air, rail, motor, and other transportation, freight forwarding, warehousing, cargo receipt and handling and logistics,
and (iii) except to the extent any non-compliance could not reasonably be expected to have a Material Adverse Effect, is in compliance
with all applicable foreign laws and regulations with respect to water, air, rail, motor, and other transportation, freight forwarding,
warehousing, cargo receipt and handling and logistics.

 

(e)          Without
limiting subparagraph (d) above, each Loan Party Obligor has, and will continue at all times to have, all international, federal,
state, local and other licenses and permits required to be maintained in connection with such Loan Party Obligor’s business
operations, including, without limitation, those required by the United States Department of Transportation, International Air
Transportation Association, United States Department of Homeland Security and Border Service, and United States Customs and Border
Protection, except where the failure to maintain any such license or permit could not reasonably be expected to have a Material
Adverse Effect, and all such licenses and permits are valid and in full force and effect. Each Loan Party Obligor has, and will
continue at all times to have, complied with the requirements of such licenses and permits in all material respects, and has received
no written notice of any pending or threatened proceedings for the suspension, termination, revocation or limitation thereof. No
Loan Party Obligor is aware of any facts or conditions that could reasonably be expected to cause or permit any of such licenses
or permits to be voided, revoked or withdrawn. Each Loan Party Obligor (i) maintains all surety bonds required by all applicable
international, federal, state and local laws and (ii) is compliant with the Customs-Trade Partnership Against Terrorism.

 

5.12        Litigation.
Section 1(e) of the Disclosure Schedule discloses all claims, proceedings, litigation or investigations pending or (to each Loan
Party Obligor’s knowledge) threatened against any Loan Party Obligor as of the date hereof. Other than as disclosed in Section
1(e) of the Disclosure Schedule, there is no claim, suit, litigation, proceeding or investigation pending or (to each Loan Party
Obligor’s knowledge) threatened by or against or affecting any Loan Party in any court or before any Governmental Authority
(or any basis therefor known to any Loan Party Obligor) which may result, either separately or in the aggregate, in liability in
excess of $150,000 for the Loan Party Obligors, in any Material Adverse Effect, or in any material impairment in the ability of
any Loan Party Obligor to carry on its business in substantially the same manner as it is now being conducted.

 

5.13        Use
of Proceeds. All proceeds of all Loans and Letters of Credit shall be used by Borrower solely
(i) with respect to Loans made on the Closing Date, to pay in full the Indebtedness (and any related interest, fees and expenses)
owing to Presidential Finance, (ii) to pay the fees, costs, and expenses incurred in connection with this Agreement, the other
Loan Documents, and the transactions contemplated hereby, (iii) for Borrower’s working capital purposes, and (iv) for such
other purposes not prohibited by this Agreement or applicable law. All proceeds of all Loans and Letters of Credit will be used
solely for lawful business purposes.

 

5.14        Insurance.

 

(a)          Each
Loan Party will at all times carry property, liability and other insurance (including credit insurance to any foreign Accounts),
with insurers reasonably acceptable to Lender, in such form and amounts, and with such deductibles and other provisions, as Lender
shall require in its Permitted Discretion, and Borrower will provide Lender with evidence satisfactory to Lender that such insurance
is, at all times, in full force and effect. A true and complete listing of such insurance as of the Closing Date, including issuers,
coverages and deductibles, is set forth in Section 5 of the Disclosure Schedule. Each property insurance policy and credit insurance
policy shall name Lender as lender loss payee and shall contain a lender’s loss payable endorsement in form reasonably acceptable
to Lender, any liability insurance policy shall name Lender as an additional insured, and each business interruption insurance
policy shall be collaterally assigned to Lender, all in form and substance satisfactory to Lender. All policies of insurance shall
provide that they may not be cancelled or changed without at least thirty days’ prior written notice to Lender, and shall
otherwise be in form and substance satisfactory to Lender. Borrower shall advise Lender promptly of any policy cancellation, non-renewal,
reduction, or material amendment with respect to any insurance policies maintained by any Loan Party or any receipt by any Loan
Party of any notice from any insurance carrier regarding any intended or threatened cancellation, non-renewal, reduction or material
amendment of any of such policies, and Borrower shall promptly deliver to Lender copies of all notices and related documentation
received by any Loan Party in connection with the same.

 

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(b)          Borrower
shall deliver to Lender, no later than fifteen (15) days prior to the expiration of any then current insurance policies, insurance
certificates evidencing renewal of all such insurance policies required by this Section 5.14. Borrower shall deliver to Lender,
upon Lender’s request, certificates evidencing such insurance coverage in such form as Lender shall specify. If any Loan
Party fails to provide Lender with a certificate of insurance or other evidence of the continuing insurance coverage required by
this Agreement within five (5) days of Lender’s written request, Lender may purchase insurance required by this Agreement
at Borrower’s expense. This insurance may, but need not, protect any Loan Party’s interests.

 

5.15       Financial,
Collateral and Other Reporting / Notices. Each Loan Party Obligor has kept and will at all
times keep adequate records and books of account with respect to its business activities and the Collateral in which proper entries
are made in accordance with GAAP reflecting all its financial transactions. Each Loan Party Obligor will cause to be prepared and
furnished to Lender, in each case in a form and in such detail as is reasonably acceptable to Lender, the following items (the
items to be provided under this Section 5.15 shall be delivered to Lender in writing or, if requested by Lender, by an Approved
Electronic Communication).

 

(a)          Borrowing
Base / Collateral Reports / Disclosure Schedules / Other Items. The items described on Schedule E hereto by the respective
dates set forth therein;

 

(b)          Annual
Financial Statements. Not later than one hundred twenty (120) days after the close of each Fiscal Year, unqualified, audited
financial statements of Parent and its Subsidiaries on a consolidated basis as of the end of such year, and separate financial
statements for (i) the Borrowers and their Subsidiaries, and (ii) INDCO and its Subsidiaries, in all instances including balance
sheet, income statement, statement of cash flow, results of their respective operations during such year, together with comparative
figures for the immediately preceding Fiscal Year and the corresponding figures from the budget for the Fiscal Year covered by
such financial statements. Such annual audited consolidated financial statements of Parent will include management discussion and
analysis of such results, and will be certified by a firm of independent certified public accountants selected by Borrower but
reasonably acceptable to Lender, together with a copy of any management letter issued in connection therewith. Concurrently with
the delivery of such financial statements, Borrower shall deliver to Lender a Compliance Certificate, indicating whether (i) Borrower
is in compliance with each of the covenants specified in Section 5.28, and setting forth a detailed calculation of such covenants,
and (ii) any Default or Event of Default is then in existence;

 

(c)          Monthly
Financial Statements. Not later than forty-five (45) days after the end of each month hereafter, including the last month of
each Fiscal Year, unaudited interim financial statements of each Borrower and its subsidiaries as of the end of such month and
of the portion of such Fiscal Year then elapsed, including balance sheet, income statement, statement of cash flow, and the results
of their respective operations during such month and the then-elapsed portion of the Fiscal Year, and comparative figures for the
same periods in the immediately preceding Fiscal Year and the corresponding figures from the budget for the Fiscal Year covered
by such financial statements, in each case, on a consolidated and consolidating basis, certified by the principal financial officer
of Administrative Borrower as prepared in accordance with GAAP and fairly presenting the consolidated financial position and results
of operations (including management discussion and analysis of such results) of each Loan Party Obligor for such month and period,
subject only to changes from ordinary course year-end audit adjustments and except that such statements need not contain footnotes.
Concurrently with the delivery of such financial statements. Borrower shall deliver to Lender a Compliance Certificate, indicating
(i) whether any Default or Event of Default is then in existence, and (ii) if such month end is also a quarter end, Borrower is
in compliance with each of the covenant specified in Section 5.28, and setting forth a detailed calculation of such covenant;

 

    	 	17	 

     

    

 

(d)          Quarterly
Financial Statements. Not later than forty-five (45) days after the end of each fiscal quarter, (i) Parent’s Quarterly
Report on Form 10-Q as filed with the United States Securities Exchange Commission, together with a comparison of same to (A) the
Parent’s Quarterly Report on Form 10-Q filed for the same quarter in the prior year, and (B) the Parent’s Quarterly
Report on Form 10-Q filed for the prior quarter, together with a management discussion analysis thereof, and (ii) a “spreadsheet”
in the form previously delivered to the Lender prior to the Closing Date which contains the consolidating financial statements
of (A) the Borrower, including all corporate expenses, and (B) INDCO and its Subsidiaries, in both cases reconciled to such Form
10-Q.

 

(e)          Projections,
Etc. Not later than fifteen days prior to the end of each Fiscal Year, monthly business projections for the following Fiscal
Year for the Loan Party Obligors on a consolidated basis, which projections shall include for each such period Borrowing Base projections,
profit and loss projections, balance sheet projections, income statement projections and cash flow projections;

 

(f)          Shareholder
Reports, Etc. Promptly after the sending or filing thereof, as the case may be, copies of any proxy statements, financial statements
or reports which each Loan Party Obligor has made available to its shareholders and copies of any regular, periodic and special
reports or registration statements which any Loan Party Obligor files with the Securities and Exchange Commission or any Governmental
Authority which may be substituted therefor, or any national securities exchange;

 

(g)          ERISA
Reports. Copies of any annual report to be filed pursuant to the requirements of ERISA in connection with each plan subject
thereto promptly upon request by Lender and in addition, each Loan Party Obligor shall promptly notify Lender upon having knowledge
of any ERISA Event;

 

(h)          Tax
Returns. Each federal and state income tax return filed by any Loan Party Obligor or Other Obligor promptly (but in no event
later than ten days following the filing of such return), together with such supporting documentation as is supplied to the applicable
tax authority with such return and proof of payment of any amounts owing with respect to such return; and

 

(i)          Notification
of Certain Changes. Borrower will promptly (and in no case later than the earlier of (i) five Business Days after the occurrence
of any of the following and (ii) such other date that such information is required to be delivered pursuant to this Agreement or
any other Loan Document) notify Lender in writing of: (i) the occurrence of any Default or Event of Default, (ii) the occurrence
of any event that has had, or may have, a Material Adverse Effect, (iii) any change in any Loan Party Obligor’s President,
Chief Executive Officer or Chief Financial Officer, (iv) any investigation, action, suit, proceeding or claim (or any material
development with respect to any existing investigation, action, suit, proceeding or claim) relating to any Loan Party, any officer
or director of a Loan Party Obligor, the Collateral or which may result in an adverse impact upon any Loan Party Obligor’s
business, assets or financial condition, (v) any material loss or damage to the Collateral, (vi) any event or the existence of
any circumstance that has resulted in, or could reasonably be expected to result in, any material adverse change in the business
or financial affairs of any Loan Party Obligor, any Default, or any Event of Default, or which would make any representation or
warranty previously made by any Loan Party Obligor to Lender untrue in any material respect or constitute a material breach if
such representation or warranty was then being made, (vii) any actual or alleged breaches of any Material Contract or termination
or threat to terminate any Material Contract or any material amendment to or modification of a Material Contract, or the execution
of any new Material Contract by any Loan Party Obligor, and (viii) any change in any Loan Party Obligor’s certified accountant.
In the event of each such notice under this Section 5.15(i), Borrower shall give notice to Lender of the action or actions that
each Loan Party Obligor has taken, is taking, or proposes to take with respect to the event or events giving rise to such notice
obligation.

 

(j)          Other
Information. Promptly upon request, such other data and information (financial and otherwise) as Lender, from time to time,
may reasonably request, bearing upon or related to the Collateral or each Loan Party Obligor’s and each Other Obligor’s
business or financial condition or results of operations.

 

5.16       Litigation
Cooperation. Should any third-party suit, regulatory action, or any other judicial, administrative,
or similar proceeding be instituted by or against Lender with respect to any Collateral or in any manner relating to any Loan Party
Obligor, this Agreement, any other Loan Document or the transactions contemplated hereby, each Loan Party Obligor shall, without
expense to Lender, make available each Loan Party Obligor, such Loan Party Obligor’s officers, employees and agents, and
any Loan Party Obligor’s books and records, without charge, to the extent that Lender may deem them reasonably necessary
in order to prosecute or defend any such suit or proceeding.

 

    	 	18	 

     

    

 

5.17         Maintenance
of Collateral, Etc. Each Loan Party Obligor will maintain all of the Collateral in good working condition, ordinary wear
and tear excepted, and no Loan Party Obligor will use the Collateral for any unlawful purpose.

 

5.18         Material
Contracts. Except as expressly disclosed in Section 1(h) of the Disclosure Schedule, no Loan
Party Obligor is (a) a party to any contract which if breached could reasonably be expected to have a Material Adverse Effect or
(b) in default in the performance, observance or fulfillment of any of the obligations, covenants or conditions contained in (x)
any contract to which it is a party or by which any of its assets or properties is bound, which default, individually or in the
aggregate, could reasonably be expected to have a Material Adverse Effect or result in liabilities in excess of $100,000 or (y)
any Material Contract. Except for the contracts and other agreements listed in Section 1(h) of the Disclosure Schedule, no Loan
Party Obligor is party, as of the Closing Date, to any (i) employment agreements covering the executive management of any Loan
Party Obligor, (ii) collective bargaining agreements or other labor agreements covering any employees of any Loan Party Obligor,
(iii) agreements for managerial, consulting or similar services to which any Loan Party Obligor is a party or by which it
is bound, (iv) agreements regarding any Loan Party Obligor, its assets or operations or any investment therein to which any of
its equity holders is a party, (v) patent licenses, trademark licenses, copyright licenses or other lease or license agreements
to which any Loan Party Obligor is a party, either as lessor or lessee, or as licensor or licensee, (vi) distribution, marketing
or supply agreements to which any Loan Party Obligor is a party, (vii) customer agreements to which any Loan Party Obligor is a
party (in each case with respect to any contract of the type described in the preceding clauses (i), (iii), (iv), (v), (vi) and
(vii) requiring payments of more than $100,000 in the aggregate in any Fiscal Year), (viii) partnership agreements to which any
Loan Party Obligor is a partner, limited liability company agreements to which any Loan Party is a member or manager, or joint
venture agreements to which any Loan Party Obligor is a party, or (ix) real estate leases (each such contract and agreement described
in the preceding clauses (i) to (x), a “Material Contract”).

 

5.19         No
Default. No Default or Event of Default has occurred and is continuing.

 

5.20         No
Material Adverse Change. As of the date hereof, since June 30, 2017, and as of any date thereafter,
since the date of the last delivery of Borrower’s annual financial statements, there has been no material adverse change
in the financial condition, business, prospects, operations, or properties of any Loan Party Obligor or any Other Obligor.

 

5.21         Full
Disclosure. No report, notice, certificate, information or other statement delivered or made
(including, in electronic form) by or on behalf of any Loan Party, any Other Obligor or any of their respective Affiliates to Lender
in connection with this Agreement or any other Loan Document contains or will at any time contain any untrue statement of a material
fact, or omits or will at any time omit to state any material fact necessary to make any statements contained herein or therein
not misleading. Except for matters of a general economic or political nature which do not affect any Loan Party or any Other Obligor
uniquely, there is no fact presently known to any Loan Party Obligor, which has not been disclosed to Lender, which has had or
could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

 

5.22         Sensitive
Payments. No Loan Party (a) has made or will at any time make any contributions, payments or
gifts to or for the private use of any governmental official, employee or agent where either the payment or the purpose of such
contribution, payment or gift is illegal under the applicable laws of the United States or the jurisdiction in which made or any
other applicable jurisdiction, (b) has established or maintained or will at any time establish or maintain any unrecorded fund
or asset for any purpose or made any false or artificial entries on its books, (c) has made or will at any time make any payments
to any Person with the intention that any part of such payment was to be used for any purpose other than that described in the
documents supporting the payment, or (d) has engaged in or will at any time engage in any “trading with the enemy”
or other transactions violating any rules or regulations of the Office of Foreign Assets Control or any similar applicable laws,
rules or regulations.

 

    	 	19	 

     

    

 

5.23         Parent.
Parent does not and shall not at any time (i) engage in any business activities other than serving as a passive holding company
for Borrower, INDCO, and any other Person which Parent may acquire after the Closing Date (provided that such acquisition is not
consummated directly or indirectly with proceeds of the Revolving Loans), (ii) have any material assets other than the outstanding
equity interests owned by it of Borrower, INDCO and any other Person which Parent may acquire after the Closing Date (provided
that such acquisition is not consummated directly or indirectly with proceeds of the Revolving Loans), (iii) have any Subsidiaries
other than Borrower, INDCO, or and any other Person which Parent may acquire as a Subsidiary after the Closing Date (provided that
such acquisition is not consummated directly or indirectly with proceeds of the Revolving Loans), or (iv) have any material liabilities
other than the Obligations except as approved by Lender.

 

5.24         Patriot
Act. To the extent applicable, each Loan Party is in compliance, in all material respects,
with the (a) Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto,
and (b) Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot
Act of 2001) (the “Patriot Act”). No part of the proceeds of the Loans will be used by any Loan Party
Obligor or any of their Affiliates, directly or indirectly, for any payments to any governmental official or employee, political
party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order to
obtain, retain or direct business or obtain any improper advantage, in violation of the United States Foreign Corrupt Practices
Act of 1977, as amended.

 

5.25         OFAC.
No Loan Party is in violation of any of the country or list based economic and trade sanctions administered and enforced by OFAC.
No Loan Party (a) is a Sanctioned Person or a Sanctioned Entity, (b) has its assets located in Sanctioned Entities, or (c) derives
revenues from investments in, or transactions with, Sanctioned Persons or Sanctioned Entities. No proceeds of any Loan will be
used to fund any operations in, finance any investments or activities in, or make any payments to, a Sanctioned Person or a Sanctioned
Entity.

 

5.26         Government
Regulation. No Loan Party is subject to regulation under the Investment Company Act of 1940 or under any other federal or state
statute or regulation which may limit its ability to incur Indebtedness or which may otherwise render all or any portion of the
Obligations unenforceable. No Loan Party is a “registered investment company” or a company “controlled”
by a “registered investment company” or a “principal underwriter” of a “registered investment company”
as such terms are defined in the Investment Company Act of 1940.

 

5.27       Negative
Covenants. No Loan Party Obligor shall, and no Loan Party Obligor shall permit any Loan Party
Obligor to, without Lender’s prior written consent:

 

(a)          Except
with respect to a Permitted Acquisition, merge or consolidate with another Person, form any new Subsidiary, or acquire any interest
in any Person; provided, however, that (i) a Loan Party Obligor (other than Parent) may merge with
another Loan Party Obligor, (ii) new Subsidiaries of a Loan Party Obligor may be formed so long as such Subsidiary is joined as
a Loan Party Obligor hereunder, and (iii) so long as the investment limits in subpart (e) below are with respect to joint ventures
complied with, a Loan Party Obligor may create a CFC via joint venture, which such Subsidiary will not have to join as a Loan Party
Obligor hereunder;

 

(b)          acquire
any assets, except in connection with a Permitted Acquisition, except in the ordinary course of business and as otherwise expressly
permitted by this Agreement;

 

(c)          enter
into any transaction outside the ordinary course of business;

 

(d)          except
for Permitted Dispositions, sell, transfer, return, or dispose of any Collateral or other assets;

 

(e)          make
any loans to, or investments in, any Affiliate or other Person in the form of money or other assets, provided that
(i) Borrower may make loans and investments in its wholly-owned domestic Subsidiaries that are Loan Party Obligors, and (ii) Parent
may make investments in (A) Borrower, (B) INDCO, and (C) those loans or investments permitted by subclauses (i), (ii), or (iii)
of Section 5.23 above; provided that such loans or investments as to (B) and (C) are not funded directly or indirectly with the
proceeds of any Revolving Loan.

 

    	 	20	 

     

    

 

(f)          incur
any Indebtedness other than the Obligations, Permitted Indebtedness and other Indebtedness which is unsecured and does not exceed
$250,000 in the aggregate at any one time;

 

(g)          create,
incur, assume or suffer to exist any Lien or other encumbrance of any nature whatsoever, other than in favor of Lender to secure
the Obligations, on any of its assets whether now or hereafter owned, other than Permitted Liens;

 

(h)          guaranty
or otherwise become liable with respect to the obligations (other than the Obligations) of another Person other than (i) the Obligations,
(ii) endorsements or instruments or other payment items for deposits, and (iii) as to Parent only, Parent may guaranty or otherwise
become liable for the foregoing as to INDCO;

 

(i)          pay
or declare any dividends or distributions on any Loan Party’s stock or other equity interest except for Permitted Dividends;

 

(j)          redeem,
retire, purchase or otherwise acquire, directly or indirectly, any of Loan Party’s (other than Parent’s) capital stock
or other equity interests;

 

(k)          make
any change in any Loan Party’s (other than Parent’s) capital structure;

 

(l)          dissolve
or elect to dissolve;

 

(m)          engage,
directly or indirectly, in a business other than the business which is being conducted on the date hereof (and any business substantially
similar, related, or incidental thereto) (except as to Parent as to which the foregoing shall not apply), wind up its business
operations or cease substantially all, or any material portion, of its normal business operations, or suffer any material disruption,
interruption or discontinuance of a material portion of its normal business operations;

 

(n)          pay
any principal or other amount on any Indebtedness that is contractually subordinated to Lender in violation of the applicable subordination
or intercreditor agreement;

 

(o)          enter
into any transaction with an Affiliate other than on arms-length terms disclosed to Lender in writing and transactions expressly
permitted under this Agreement;

 

(p)          change
its state of organization or enter into any transaction which has the effect of changing its state of organization except as provided
for in Section 5.8;

 

(q)          agree,
consent, permit or otherwise undertake to amend or otherwise modify any of the terms or provisions of any Loan Party Obligor’s
Organic Documents, except for such amendments or other modifications required by applicable law or that are not adverse to Lender,
and then, only to the extent such amendments or other modifications are fully disclosed in writing to Lender no less than five
(5) Business Days prior to being effectuated;

 

(r)          enter
into or assume any agreement prohibiting the creation or assumption of any Lien to secure the Obligations upon its properties or
assets, whether now owned or hereafter acquired; or

 

(s)          create
or otherwise cause or suffer to exist or become effective any encumbrance or restriction (other than any Loan Document) of any
kind on the ability of any such Person to pay or make any dividends or distributions to Borrower, to pay any of the Obligations,
to make loans or advances or to transfer any of its property or assets to Borrower.

 

5.28       Financial
Covenant. Each Loan Party Obligor shall at all times comply with the Financial Covenant described
on Schedule F.

 

    	 	21	 

     

    

 

		6.	RELEASE, LIMITATION OF LIABILITY AND INDEMNITY.

 

6.1           Release.
Borrower and each other Loan Party Obligor, on behalf of itself and its successors, assigns, heirs, and other legal representatives,
hereby absolutely, unconditionally and irrevocably releases, remises and forever discharges Lender and any and all Participants,
their successors and assigns, their Affiliates, their respective directors, officers, employees, attorneys and agents and any other
Person affiliated with or representing Lender (the “Released Parties”) of and from any and all liability,
including all actual or potential claims, demands or causes of action of any kind, nature or description whatsoever, whether arising
in law or equity or under contract or tort or under any state or federal law or otherwise which Borrower or any other Loan Party
Obligor or any of their successors, assigns, or other legal representatives has had, now has or has made claim to have against
any of the Released Parties for or by reason of any act, omission, matter, cause or thing whatsoever, including any liability arising
from acts or omissions pertaining to the transactions contemplated by this Agreement and the other Loan Documents, whether based
on errors of judgment or mistake of law or fact, from the beginning of time to and including the date hereof, whether such claims,
demands and causes of action are matured or known or unknown. Notwithstanding any provision in this Agreement to the contrary,
this Section 6.1 shall remain operative even after the Termination Date and shall survive the payment in full of all of the Loans.
Such release is made on the date hereof and remade upon each request for a Loan or Letter of Credit by Borrower.

 

6.2           Limitation
of Liability. In no circumstance will any of the Released Parties be liable for lost profits
or other special, punitive, or consequential damages. Notwithstanding any provision in this Agreement to the contrary, this Section
6.2 shall remain operative even after the Termination Date and shall survive the payment in full of all of the Loans.

 

6.3           Indemnity.
Each Loan Party Obligor hereby agrees to indemnify the Released Parties and hold them harmless from and against any and all claims,
debts, liabilities, demands, obligations, actions, causes of action, penalties, costs and expenses (including attorneys’
fees), of every nature, character and description, which the Released Parties may sustain or incur based upon or arising out of
any of the transactions contemplated by this Agreement or any other Loan Document or any of the Obligations, including any transactions
or occurrences relating to the issuance of any Letter of Credit, any Collateral relating thereto, any drafts thereunder and any
errors or omissions relating thereto (including any loss or claim due to any action or inaction taken by the issuer of any Letter
of Credit or Lender) (and for this purpose any charges to Lender by any issuer of Letters of Credit shall be conclusive as to their
appropriateness and may be charged to the Loan Account), or any other matter, cause or thing whatsoever occurred, done, omitted
or suffered to be done by Lender relating to any Loan Party or the Obligations (except any such amounts sustained or incurred solely
as the result of the gross negligence or willful misconduct of such Released Parties, as finally determined by a court of competent
jurisdiction). Notwithstanding any provision in this Agreement to the contrary, this Section 6.3 shall remain operative even after
the Termination Date and shall survive the payment in full of all of the Loans.

 

		7.	EVENTS OF DEFAULT AND REMEDIES.

 

7.1          Events
of Default. The occurrence of any of the following events shall constitute an “Event
of Default”:

 

(a)          if
any warranty, representation, statement, report or certificate made or delivered to Lender by or on behalf of any Loan Party Obligor
or any Other Obligor is untrue or misleading in any material respect or, to the extent already qualified by materiality, in any
respect;

 

(b)          if
any Loan Party Obligor or any Other Obligor fails to pay to Lender, (i) when due, any principal or interest payment required under
this Agreement or any other Loan Document, or (ii) within three (3) Business Days when due, any other monetary Obligation;

 

(c)          if
any Loan Party or any Other Obligor breaches any covenant or obligation contained in:

 

(i)          Sections
4.1, 4.6, 4.7, 5.3, 5.4, 5.5, 5.6, 5.8, 5.9, 5.10, 5.11, 5.13, 5.14, 5.15, 5.21, 5.22, 5.23, 5.24, 5.25, 5.27, 5.28, 8.1, 8.5,
8.12, 9, 10.7 or 10.13 of this Agreement; or

 

    	 	22	 

     

    

 

(ii)         any
other Section of this Agreement or any other Loan Document (to the extent such breach is not otherwise embodied in any other provision
of this Section 7.1 for which a different cure period is specified or which constitutes an immediate Event of Default under this
Agreement or the other Loan Documents), which is not cured to Lender’s satisfaction within seven (7) days after the earlier
to occur of (A) the date upon which any officer or director of any Loan Party Obligor knew of such breach, or (B) the date upon
which written notice thereof is given to Borrower by Lender, provided that such cure period shall not apply in the
case of any breach which is not capable of being cured within such seven day period;

 

(d)          if
one or more judgments aggregating in excess of $250,000 is obtained against any Loan Party Obligor or any Other Obligor (except
to the extent fully covered (other than to the extent of customary deductibles) by insurance pursuant to which the insurer has
not denied coverage) which remains unstayed for more than ten days or is enforced;

 

(e)          any
default with respect to any Indebtedness in excess of $100,000 (other than the Obligations) of any Loan Party Obligor or any Other
Obligor if (i) such default shall consist of the failure to pay such Indebtedness when due, whether by acceleration or otherwise,
or (ii) the effect of such default is to permit the holder, with or without notice or lapse of time or both, to accelerate the
maturity of any such Indebtedness or to cause such Indebtedness to become due prior to the stated maturity thereof;

 

(f)          the
dissolution, death, termination of existence, insolvency or business failure or suspension or cessation of business as usual of
any Loan Party Obligor or any Other Obligor which is an entity (or of any general partner of any Loan Party or any Other Obligor
if it is a partnership);

 

(g)          if
any Loan Party Obligor or any Other Obligor shall apply for or consent to the appointment of a receiver, trustee, custodian or
liquidator of it or any of its properties, admit in writing its inability to pay its debts as they mature, make a general assignment
for the benefit of creditors, be adjudicated as bankrupt or insolvent or be the subject of an order for relief under Title 11 of
the United States Code or under any bankruptcy or insolvency law of a foreign jurisdiction, or file a voluntary petition in bankruptcy,
or a petition or an answer seeking reorganization or an arrangement with creditors or to take advantage of any bankruptcy, reorganization,
insolvency, readjustment of debt, dissolution or liquidation law or statute, or an answer admitting the material allegations of
a petition filed against it in any proceeding under any such law, or take or permit to be taken any action in furtherance of or
for the purpose of effecting any of the foregoing;

 

(h)          the
commencement of an involuntary case or other proceeding against any Loan Party Obligor or any Other Obligor seeking liquidation,
reorganization or other relief with respect to it or its debts under any bankruptcy, insolvency or other similar applicable law
or seeking the appointment of a trustee, receiver, liquidator, custodian or other similar official of it or any substantial part
of its property, which is not discharged or dismissed within sixty days, or if an order for relief is entered against any Loan
Party Obligor or any Other Obligor under any bankruptcy, insolvency or other similar applicable law as now or hereafter in effect;

 

(i)          the
actual or attempted revocation or termination of, or limitation or denial of liability under, any guaranty of any of the Obligations;

 

(j)          if
any Loan Party Obligor or Other Obligor makes any payment on account of any Indebtedness or obligation which has been contractually
subordinated to the Obligations other than payments which are not prohibited by the applicable subordination provisions pertaining
thereto, or if any Person who has subordinated such Indebtedness or obligations attempts to limit or terminate any applicable subordination
provisions pertaining thereto;

 

(k)          if
there is any actual indictment of any Loan Party Obligor, any Loan Party Obligor’s officers, any Other Obligor or any Other
Obligor’s officers under any criminal statute or commencement of criminal proceedings against any such Person;

 

(l)          if
a Change of Control shall occur;

 

(m)       the
occurrence of a Material Adverse Effect;

 

    	 	23	 

     

    

 

(n)          if
any Lien purported to be created by any Loan Document shall cease to be a valid perfected first priority Lien (subject only to
any priority accorded by law to Permitted Liens) on any Accounts or, with respect to other Collateral, a material portion thereof,
or any Loan Party Obligor or any Other Obligor shall assert in writing that any Lien purported to be created by any Loan Document
is not a valid perfected first priority Lien (subject only to any priority accorded by law to Permitted Liens) on the assets or
properties purported to be covered thereby;

 

(o)          if
any of the Loan Documents shall cease to be in full force and effect (other than as a result of the discharge thereof in accordance
with the terms thereof or by written agreement of all parties thereto) or any Loan Party Obligor shall deny the enforceability
of any provision thereof;

 

(p)          if
(A) the outstanding balance of all Revolving Loans and the Letter of Credit Balance exceeds, at any time, the lesser of (x) the
Maximum Revolving Facility Amount and (y) the Borrowing Base, or (B) any of the Loan Limits for Revolving Loans are, at any time,
exceeded; or

 

(q)          (i)
an ERISA Event occurs with respect to a Pension Plan or Multiemployer Plan which has resulted or could reasonably be expected to
result in liability of any Loan Party or any Subsidiary under Title IV of ERISA to the Pension Plan, Multiemployer Plan or the
PBGC in an aggregate amount in excess of $100,000, (ii) the existence of any Lien under Section 430(k) or Section 6321 of the Code
or Section 303(k) or Section 4068 of ERISA on any assets of a Loan Party, or (iii) a Loan Party or any ERISA Affiliate fails to
pay when due, after the expiration of any applicable grace period, any installment payment with respect to its withdrawal liability
under Section 4201 of ERISA under a Multiemployer Plan in an aggregate amount in excess of $10,000.

 

7.2          Remedies
with Respect to Lending Commitments/Acceleration/Etc. Upon the occurrence of an Event of Default, Lender may, in
Lender’s sole discretion, (i) terminate all or any portion of its obligations to lend to or extend credit to Borrower
under this Agreement or any other Loan Document, without prior notice to any Loan Party Obligor, (ii) demand payment in full
of all or any portion of the Obligations (whether or not payable on demand prior to such Event of Default), or (iii) take any
and all other and further actions and avail itself of any and all rights and remedies available to Lender under this
Agreement, any other Loan Document, under law or in equity. Notwithstanding the foregoing sentence, upon the occurrence of
any Event of Default described in Section 7.1(g) or Section 7.1(h), without notice, demand or other action by Lender all of
the Obligations shall immediately become due and payable whether or not payable on demand prior to such Event of Default.

 

7.3          Remedies
with Respect to Collateral. Without limiting any rights or remedies Lender may have pursuant
to this Agreement, the other Loan Documents, under applicable law or otherwise, upon the occurrence and during the continuation
of an Event of Default:

 

(a)          Any
and All Remedies. Lender may take any and all actions and avail itself of any and all rights and remedies available to Lender
under this Agreement, any other Loan Document, under law or in equity (including all rights of a secured creditor under the UCC),
and the rights and remedies herein and therein provided shall be cumulative and not exclusive of any rights or remedies provided
by applicable law or otherwise.

 

(b)          Collections;
Modifications of Terms. Lender may but shall be under no obligation to (i) notify all appropriate parties that the Collateral,
or any part thereof, has been assigned to Lender; (ii) demand, sue for, collect and give receipts for and take all necessary or
desirable steps to collect any Collateral or Proceeds in its or any Loan Party Obligor’s name, and apply any such collections
against the Obligations as Lender may elect; (iii) take control of any Collateral and any cash and non-cash Proceeds of any Collateral;
(iv) enforce, compromise, extend, renew, settle or discharge any rights or benefits of each Loan Party Obligor with respect to
or in and to any Collateral, or deal with the Collateral as Lender may deem advisable; and (v) make any compromises, exchanges,
substitutions or surrenders of Collateral as Lender deems necessary or proper in its reasonable discretion, including extending
the time of payment, permitting payment in installments, or otherwise modifying the terms or rights relating to any of the Collateral,
all of which may be effected without notice to, consent of, or any other action of any Loan Party Obligor and without otherwise
discharging or affecting the Obligations, the Collateral or the security interests granted to Lender under this Agreement or any
other Loan Document.

 

    	 	24	 

     

    

 

(c)          Insurance.
Lender may file proofs of loss and claim with respect to any of the Collateral with the appropriate insurer, and may endorse in
its own and each Loan Party Obligor’s name any checks or drafts constituting Proceeds of insurance. Any Proceeds of insurance
received by Lender may be applied by Lender against payment of all or any portion of the Obligations as Lender may elect in its
reasonable discretion.

 

(d)           Possession
and Assembly of Collateral. Lender may take possession of the Collateral and, without removal, render each Loan Party Obligor’s
Equipment unusable. Upon Lender’s request, each Loan Party Obligor shall assemble the Collateral and make it available to
Lender at a place or places to be designated by Lender.

 

(e)           Set-off.
Lender may and without any notice to, consent of or any other action by any Loan Party Obligor (such notice, consent or other action
being expressly waived), set-off or apply (i) any and all deposits (general or special, time or demand, provisional or final) at
any time held by or for the account of Lender or any Affiliate of Lender, and (ii) any Indebtedness at any time owing by Lender
or any Affiliate of Lender or any Participant in the Loans to or for the credit or the account of any Loan Party Obligor, to the
repayment of the Obligations irrespective of whether any demand for payment of the Obligations has been made.

 

(f)            Disposition
of Collateral.

 

(i)          Lender
may, without demand, advertising or notice, all of which each Loan Party Obligor hereby waives (except as the same may be required
by the UCC or other applicable law and is not waivable under the UCC or such other applicable law), at any time or times in one
or more public or private sales or other dispositions, for cash, on credit or otherwise, at such prices and upon such terms as
determined by Lender (provided such price and terms are commercially reasonable within the meaning of the UCC to
the extent such sale or other disposition is subject to the UCC requirements that such sale or other disposition must be commercially
reasonable), (A) sell, lease, license or otherwise dispose of any and all Collateral, or (B) deliver and grant options to a third
party to purchase, lease, license or otherwise dispose of any and all Collateral. Lender may sell, lease, license or otherwise
dispose of any Collateral in its then-present condition or following any preparation or processing deemed necessary by Lender in
its reasonable discretion. To the extent permitted by applicable law, Lender may be the purchaser at any such public or private
sale or other disposition of Collateral, and in such case Lender may make payment of all or any portion of the purchase price therefor
by the application of all or any portion of the Obligations due to Lender to the purchase price payable in connection with such
sale or disposition. Lender may, if it deems it reasonable, postpone or adjourn any public sale of any Collateral from time to
time by an announcement at the time and place of the sale to be so postponed or adjourned without being required to give a new
notice of sale or disposition, provided, however, that Lender shall provide the applicable Loan Party
Obligor with written notice of the time and place of such postponed or adjourned sale. Each Loan Party Obligor hereby acknowledges
and agrees that Lender’s compliance with any requirements of applicable law in connection with a sale, lease, license or
other disposition of Collateral will not be considered to adversely affect the commercial reasonableness of any sale, lease, license
or other disposition of such Collateral.

 

(ii)         Each
Loan Party Obligor shall remain liable for all amounts of the Obligations remaining unpaid as a result of any deficiency of the
Proceeds of the sale, lease, license or other disposition of Collateral after such Proceeds are applied to the Obligations as provided
in this Agreement.

 

(iii)        Lender
may sell, lease, license or otherwise dispose of the Collateral without giving any warranties and may specifically disclaim any
and all warranties, including warranties of title, possession, merchantability and fitness for a particular purpose. Each Loan
Party Obligor hereby acknowledges and agrees that Lender’s disclaimer of any and all warranties in connection with a sale,
lease, license or other disposition of Collateral will not be considered to adversely affect the commercial reasonableness of any
such disposition of the Collateral. If Lender sells, leases, licenses or otherwise disposes of any of the Collateral on credit,
Borrower will be credited only with payments actually made in cash by the recipient of such Collateral and received by Lender and
applied to the Obligations. If any Person fails to pay for Collateral acquired pursuant this Section 7.3(f) on credit, Lender may
re-offer the Collateral for sale, lease, license or other disposition.

 

    	 	25	 

     

    

 

(g)          Investment
Property; Voting and Other Rights; Irrevocable Proxy.

 

(i)          All
rights of each Loan Party Obligor to exercise any of the voting and other consensual rights which it would otherwise be entitled
to exercise in accordance with the terms hereof with respect to any Investment Property, and to receive any dividends, payments,
and other distributions which it would otherwise be authorized to receive and retain in accordance with the terms hereof with respect
to any Investment Property, shall immediately, at the election of Lender (without requiring any notice) cease, and all such rights
shall thereupon become vested solely in Lender, and Lender (personally or through an agent) shall thereupon be solely authorized
and empowered, without notice, to (a) transfer and register in its name, or in the name of its nominee, the whole or any part of
the Investment Property, it being acknowledged by each Loan Party Obligor that any such transfer and registration may be effected
by Lender through its irrevocable appointment as attorney-in-fact pursuant to Section 7.3(g)(ii) and Section 4.4 of this Agreement,
(b) exchange certificates and/or instruments representing or evidencing Investment Property for certificates and/or instruments
of smaller or larger denominations, (c) exercise the voting and all other rights as a holder with respect to all or any portion
of the Investment Property (including all economic rights, all control rights, authority and powers, and all status rights of each
Loan Party Obligor as a member or as a shareholder (as applicable) of the Issuer), (d) collect and receive all dividends and other
payments and distributions made thereon, (e) notify the parties obligated on any Investment Property to make payment to Lender
of any amounts due or to become due thereunder, (f) endorse instruments in the name of each Loan Party Obligor to allow collection
of any Investment Property, (g) enforce collection of any of the Investment Property by suit or otherwise, and surrender, release,
or exchange all or any part thereof, or compromise or renew for any period (whether or not longer than the original period) any
liabilities of any nature of any Person with respect thereto, (h) consummate any sales of Investment Property or exercise any other
rights as set forth in Section 7.3(f) hereof, (i) otherwise act with respect to the Investment Property as though Lender was the
outright owner thereof, and (j) exercise any other rights or remedies Lender may have under the other Loan Documents, the UCC,
other applicable law, or otherwise.

 

(ii)         EACH
LOAN PARTY OBLIGOR HEREBY IRREVOCABLY CONSTITUTES AND APPOINTS LENDER AS ITS PROXY AND ATTORNEY-IN-FACT FOR SUCH LOAN PARTY OBLIGOR
WITH RESPECT TO ALL OF EACH SUCH LOAN PARTY OBLIGOR’S INVESTMENT PROPERTY WITH THE RIGHT, DURING THE CONTINUANCE OF AN EVENT
OF DEFAULT, WITHOUT NOTICE, TO TAKE ANY OF THE FOLLOWING ACTIONS: (A) TRANSFER AND REGISTER IN LENDER’S NAME, OR IN THE NAME
OF ITS NOMINEE, THE WHOLE OR ANY PART OF THE INVESTMENT PROPERTY, (B) VOTE THE PLEDGED EQUITY, WITH FULL POWER OF SUBSTITUTION
TO DO SO, (C) RECEIVE AND COLLECT ANY DIVIDEND OR ANY OTHER PAYMENT OR DISTRIBUTION IN RESPECT OF, OR IN EXCHANGE FOR, THE INVESTMENT
PROPERTY OR ANY PORTION THEREOF, TO GIVE FULL DISCHARGE FOR THE SAME AND TO INDORSE ANY INSTRUMENT MADE PAYABLE TO ANY LOAN PARTY
OBLIGOR FOR THE SAME, (D) EXERCISE ALL OTHER RIGHTS, POWERS, PRIVILEGES, AND REMEDIES (INCLUDING ALL ECONOMIC RIGHT’S, ALL
CONTROL RIGHTS, AUTHORITY AND POWERS, AND ALL STATUS RIGHTS OF EACH LOAN PARTY OBLIGOR AS A MEMBER OR AS A SHAREHOLDER (AS APPLICABLE)
OF THE ISSUER) TO WHICH A HOLDER OF THE PLEDGED COLLATERAL WOULD BE ENTITLED (INCLUDING, WITH RESPECT TO THE PLEDGED EQUITY, GIVING
OR WITHHOLDING WRITTEN CONSENTS OF MEMBERS OR SHAREHOLDERS, CALLING SPECIAL MEETINGS OF MEMBERS OR SHAREHOLDERS, AND VOTING AT
SUCH MEETINGS), AND (E) TAKE ANY ACTION AND TO EXECUTE ANY INSTRUMENT WHICH LENDER MAY DEEM NECESSARY OR ADVISABLE TO ACCOMPLISH
THE PURPOSES OF THIS AGREEMENT. THE APPOINTMENT OF LENDER AS PROXY AND ATTORNEY-IN-FACT IS COUPLED WITH AN INTEREST AND SHALL BE
VALID AND IRREVOCABLE UNTIL (X) ALL OF THE OBLIGATIONS HAVE BEEN INDEFEASIBLY PAID IN FULL IN CASH IN ACCORDANCE WITH THE PROVISIONS
OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS AND (Y) LENDER HAS NO FURTHER OBLIGATIONS UNDER THIS AGREEMENT OR ANY OTHER LOAN
DOCUMENT (IT BEING UNDERSTOOD AND AGREED THAT SUCH OBLIGATIONS WILL BE AUTOMATICALLY REINSTATED IF AT ANY TIME PAYMENT, IN WHOLE
OR IN PART, OF ANY OF THE OBLIGATIONS IS RESCINDED OR MUST OTHERWISE BE RESTORED OR RETURNED BY LENDER FOR ANY REASON WHATSOEVER,
INCLUDING AS A PREFERENCE, FRAUDULENT CONVEYANCE, OR OTHERWISE UNDER ANY BANKRUPTCY, INSOLVENCY, OR SIMILAR LAW, ALL AS THOUGH
SUCH PAYMENT HAD NOT BEEN MADE; IT BEING FURTHER UNDERSTOOD THAT IN THE EVENT PAYMENT OF ALL OR ANY PART OF THE OBLIGATIONS IS
RESCINDED OR MUST BE RESTORED OR RETURNED, ALL REASONABLE OUT-OF-POCKET COSTS AND EXPENSES (INCLUDING ALL REASONABLE ATTORNEYS’
FEES AND DISBURSEMENTS) INCURRED BY LENDER IN DEFENDING AND ENFORCING SUCH REINSTATEMENT SHALL HEREBY BE DEEMED TO BE INCLUDED
AS A PART OF THE OBLIGATIONS). SUCH APPOINTMENT OF LENDER AS PROXY AND AS ATTORNEY-IN-FACT SHALL BE VALID AND IRREVOCABLE AS PROVIDED
HEREIN NOTWITHSTANDING ANY LIMITATIONS TO THE CONTRARY SET FORTH IN ANY ORGANIC DOCUMENTS OF ANY LOAN PARTY OBLIGOR, ANY ISSUER,
OR OTHERWISE.

 

    	 	26	 

     

    

 

(iii)        In
order to further effect the foregoing transfer of rights in favor of Lender, during the continuance of an Event of Default, each
Loan Party Obligor hereby authorizes and instructs each Issuer of Investment Property pledged by such Loan Party Obligor to comply
with any instruction received by such Issuer from Lender without any other or further instruction from such Loan Party Obligor,
and each Loan Party Obligor acknowledges and agrees that each Issuer shall be fully protected in so complying, and to pay any dividends,
distributions, or other payments with respect to any of the Investment Property directly to Lender.

 

(iv)        Upon
exercise of the proxy set forth herein, all prior proxies given by any Loan Party Obligor with respect to any of the Pledged Equity
or other Investment Property, as applicable (other than to Lender), are hereby revoked, and no subsequent proxies (other than to
Lender) will be given with respect to any of the Pledged Equity or any of the other Investment Property, as applicable, unless
Lender otherwise subsequently agrees in writing. Lender, as proxy, will be empowered and may exercise the irrevocable proxy to
vote the Pledged Equity and the other Investment Property at any and all times during the existence of an Event of Default, including
at any meeting of shareholders or members, as the case may be, however called, and at any adjournment thereof, or in any action
by written consent, and may waive any notice otherwise required in connection therewith. To the fullest extent permitted by applicable
law, Lender shall have no agency, fiduciary, or other implied duties to any Loan Party Obligor, any Issuer, any Loan Party, or
any other Person when acting in its capacity as such proxy or attorney-in-fact. Each Loan Party Obligor hereby waives and releases
any claims that it may otherwise have against Lender with respect to any breach, or alleged breach, of any such agency, fiduciary,
or other duty.

 

(v)         Any
transfer to Lender or its nominee, or registration in the name of Lender or its nominee, of the whole or any part of the Investment
Property shall be made solely for purposes of effectuating voting or other consensual rights with respect to the Investment Property
in accordance with the terms of this Agreement and is not intended to effectuate any transfer of ownership of any of the Investment
Property. Notwithstanding the delivery by Lender of any instruction to any Issuer or any exercise by Lender of an irrevocable proxy
or otherwise, Lender shall not be deemed the owner of, or assume any obligations or any liabilities whatsoever of the owner or
holder of, any Investment Property unless and until Lender expressly accepts such obligations in a duly authorized and executed
writing and agrees in writing to become bound by the applicable Organic Documents or otherwise becomes the owner thereof under
applicable law (including through a sale as described in Section 7.3(f) hereof). The execution and delivery of this Agreement shall
not subject Lender to, or transfer or pass to Lender, or in any way affect or modify, the liability of any Loan Party Obligor under
the Organic Documents of any Issuer or any related agreements, documents, or instruments or otherwise. In no event shall the execution
and delivery of this Agreement by Lender, or the exercise by Lender of any rights hereunder or assigned hereby, constitute an assumption
of any liability or obligation whatsoever of any Loan Party Obligor to, under, or in connection with any of the Organic Documents
of any Issuer or any related agreements, documents, or instruments or otherwise.

 

(h)          Election
of Remedies. Lender shall have the right in Lender’s sole discretion to determine which rights, security, Liens or remedies
Lender may at any time pursue, foreclose upon, relinquish, subordinate, modify or take any other action with respect to, without
in any way impairing, modifying or affecting any of Lender’s other rights, security, Liens or remedies with respect to such
Property, or any of Lender’s rights or remedies under this Agreement or any other Loan Document.

 

(i)          Lender’s
Obligations. Each Loan Party Obligor agrees that Lender shall not have any obligation to preserve rights to any Collateral
against prior parties or to marshal any Collateral of any kind for the benefit of any other creditor of any Loan Party Obligor
or any other Person. Lender shall not be responsible to any Loan Party Obligor or any other Person for loss or damage resulting
from Lender’s failure to enforce its Liens or collect any Collateral or Proceeds or any monies due or to become due under
the Obligations or any other liability or obligation of any Loan Party Obligor to Lender.

 

(j)          Waiver
of Rights by Loan Party Obligors. Except as otherwise expressly provided for in this Agreement or by non-waivable applicable
law, each Loan Party Obligor waives: (a) presentment, demand and protest and notice of presentment, dishonor, notice of intent
to accelerate, notice of acceleration, protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal
of any or all commercial paper, accounts, contract rights, documents, instruments, chattel paper and guaranties at any time held
by Lender on which any Loan Party Obligor may in any way be liable, and hereby ratifies and confirms whatever Lender may do in
this regard, (b) to the extent permitted by applicable law, all rights to notice and a hearing prior to Lender’s taking possession
or control of, or to Lender’s replevy, attachment or levy upon, the Collateral or any bond or security which might be required
by any court prior to allowing Lender to exercise any of its remedies and (c) the benefit of all valuation, appraisal, marshalling
and exemption laws.

 

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		8.	LOAN GUARANTY.

 

8.1          Guaranty.
Each Loan Party Obligor hereby agrees that it is jointly and severally liable for, and absolutely and unconditionally guarantees
to Lender, the prompt payment when due, whether at stated maturity, upon acceleration or otherwise, and at all times thereafter,
of the Obligations and all costs and expenses, including all court costs and attorneys’ and paralegals’ fees (including
allocated costs of in-house counsel and paralegals) and expenses paid or incurred by Lender in endeavoring to collect all or any
part of the Obligations from, or in prosecuting any action against, Borrower, any Loan Party Obligor or any Other Obligor of all
or any part of the Obligations (and such costs and expenses paid or incurred shall be deemed to be included in the Obligations).
Each Loan Party Obligor further agrees that the Obligations may be extended or renewed in whole or in part without notice to or
further assent from it, and that it remains bound upon its guarantee notwithstanding any such extension or renewal. All terms of
this Loan Guaranty apply to and may be enforced by or on behalf of any branch or Affiliate of Lender that extended any portion
of the Obligations.

 

8.2          Guaranty
of Payment. This Loan Guaranty is a guaranty of payment and not of collection. Each Loan Party
Obligor waives any right to require Lender to sue or otherwise take action against Borrower, any other Loan Party Obligor, any
Other Obligor, or any other Person obligated for all or any part of the Obligations, or otherwise to enforce its payment against
any Collateral securing all or any part of the Obligations.

 

8.3          No
Discharge or Diminishment of Loan Guaranty.

 

(a)          Except
as otherwise expressly provided for herein, the obligations of each Loan Party Obligor hereunder are unconditional and absolute
and not subject to any reduction, limitation, impairment or termination for any reason (other than the indefeasible payment in
full in cash of all of the Obligations), including: (i) any claim of waiver, release, extension, renewal, settlement, surrender,
alteration, or compromise of any of the Obligations, by operation of law or otherwise; (ii) any change in the existence, structure
or ownership of Borrower or any Obligor; (iii) any insolvency, bankruptcy, reorganization or other similar proceeding affecting
Borrower or any Obligor, or their assets or any resulting release or discharge of any obligation of Borrower or any Obligor; or
(iv) the existence of any claim, setoff or other rights which any Loan Party Obligor may have at any time against Borrower, any
Obligor, Lender, or any other Person, whether in connection herewith or in any unrelated transactions.

 

(b)          The
obligations of each Loan Party Obligor hereunder are not subject to any defense or setoff, counterclaim, recoupment, or termination
whatsoever by reason of the invalidity, illegality, or unenforceability of any of the Obligations or otherwise, or any provision
of applicable law or regulation purporting to prohibit payment by Borrower or any Obligor, of the Obligations or any part thereof.

 

(c)          Further,
the obligations of any Loan Party Obligor hereunder are not discharged or impaired or otherwise affected by: (i) the failure of
Lender to assert any claim or demand or to enforce any remedy with respect to all or any part of the Obligations; (ii) any waiver
or modification of or supplement to any provision of any agreement relating to the Obligations; (iii) any release, non-perfection,
or invalidity of any indirect or direct security for all or any part of the Obligations or all or any part of any obligations of
any Obligor; (iv) any action or failure to act by Lender with respect to any Collateral; or (v) any default, failure or delay,
willful or otherwise, in the payment or performance of any of the Obligations, or any other circumstance, act, omission or delay
that might in any manner or to any extent vary the risk of such Loan Party Obligor or that would otherwise operate as a discharge
of any Loan Party Obligor as a matter of law or equity (other than the indefeasible payment in full in cash of all of the Obligations).

 

    	 	28	 

     

    

 

8.4           Defenses
Waived. To the fullest extent permitted by applicable law, each Loan Party Obligor hereby waives
any defense based on or arising out of any defense of any Loan Party Obligor or the unenforceability of all or any part of the
Obligations from any cause, or the cessation from any cause of the liability of any Loan Party Obligor, other than the payment
in full in cash of all of the Obligations. Without limiting the generality of the foregoing, each Loan Party Obligor irrevocably
waives acceptance hereof, presentment, demand, protest and, to the fullest extent permitted by law, any notice not provided for
herein, as well as any requirement that at any time any action be taken by any Person against Borrower, any Obligor, any other
Person or any Collateral. Each Loan Party Obligor confirms that it is not a surety under any state law and shall not raise any
such law as a defense to its obligations hereunder. Lender may, at its election, foreclose on any Collateral held by it by one
or more judicial or nonjudicial sales, accept an assignment of any such Collateral in lieu of foreclosure or otherwise act or fail
to act with respect to any Collateral, compromise or adjust any part of the Obligations, make any other accommodation with Borrower
or any Obligor or exercise any other right or remedy available to it against Borrower, any Obligor or any Collateral, without affecting
or impairing in any way the liability of any Loan Party Obligor under this Loan Guaranty except to the extent the Obligations have
been fully and indefeasibly paid in cash. To the fullest extent permitted by applicable law, each Loan Party Obligor waives any
defense arising out of any such election even though that election may operate, pursuant to applicable law, to impair or extinguish
any right of reimbursement or subrogation or other right or remedy of any Loan Party Obligor against Borrower or any Obligor or
any security.

 

8.5           Rights
of Subrogation. No Loan Party Obligor will assert any right, claim or cause of action, including
any claim of subrogation, contribution or indemnification that it has against Borrower or any Obligor, or any Collateral, until
the Termination Date.

 

8.6           Reinstatement;
Stay of Acceleration. If at any time any payment of any portion of the Obligations is rescinded
or must otherwise be restored or returned upon the insolvency, bankruptcy, or reorganization of Borrower or any other Person, or
otherwise, each Loan Party Obligor’s obligations under this Loan Guaranty with respect to that payment shall be reinstated
at such time as though the payment had not been made and whether or not Lender is in possession of this Loan Guaranty. If acceleration
of the time for payment of any of the Obligations is stayed upon the insolvency, bankruptcy or reorganization of Borrower, all
such amounts otherwise subject to acceleration under the terms of any agreement relating to the Obligations shall nonetheless be
payable by the Loan Party Obligors forthwith on demand by Lender. This Section 8.6 shall remain operative even after the Termination
Date and shall survive the payment in full of all of the Loans.

 

8.7           Information.
Each Loan Party Obligor assumes all responsibility for being and keeping itself informed of Borrower’s financial condition
and assets, and of all other circumstances bearing upon the risk of nonpayment of the Obligations and the nature, scope and extent
of the risks that each Loan Party Obligor assumes and incurs under this Loan Guaranty, and agrees that Lender shall not have any
duty to advise any Loan Party Obligor of information known to it regarding those circumstances or risks.

 

8.8           Termination.
To the maximum extent permitted by law, each Loan Party Obligor hereby waives any right to revoke this Guaranty as to future Obligations.
If such a revocation is effective notwithstanding the foregoing waiver, each Loan Party Obligor acknowledges and agrees that (a)
no such revocation shall be effective until written notice thereof has been received by Lender, (b) no such revocation shall apply
to any Obligations in existence on the date of receipt by Lender of such written notice (including any subsequent continuation,
extension, or renewal thereof, or change in the interest rate, payment terms, or other terms and conditions thereof), (c) no such
revocation shall apply to any Obligations made or created after such date to the extent made or created pursuant to a legally binding
commitment of Lender, (d) no payment by Borrower, any other Loan Party Obligor, or from any other source, prior to the date of
Lender’s receipt of written notice of such revocation, shall reduce the maximum obligation of any Loan Party Obligor hereunder,
and (e) any payment, by Borrower or from any source other than a Loan Party Obligor which has made such a revocation, made subsequent
to the date of such revocation, shall first be applied to that portion of the Obligations as to which the revocation is effective
and which are not, therefore, guarantied hereunder, and to the extent so applied shall not reduce the maximum obligation of any
Loan Party Obligor hereunder.

 

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8.9           Maximum
Liability. The provisions of this Loan Guaranty are severable, and in any action or proceeding
involving any state corporate law, or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting
the rights of creditors generally, if the obligations of any Loan Party Obligor under this Loan Guaranty would otherwise be held
or determined to be avoidable, invalid or unenforceable on account of the amount of such Loan Party Obligor’s liability under
this Loan Guaranty, then, notwithstanding any other provision of this Loan Guaranty to the contrary, the amount of such liability
shall, without any further action by the Loan Party Obligors or Lender, be automatically limited and reduced to the highest amount
that is valid and enforceable as determined in such action or proceeding (such highest amount determined hereunder being the relevant
Loan Party Obligor’s “Maximum Liability”). This Section 8.9 with respect to the Maximum Liability
of each Loan Party Obligor is intended solely to preserve the rights of Lender to the maximum extent not subject to avoidance under
applicable law, and no Loan Party Obligor nor any other Person shall have any right or claim under this Section 8.9 with respect
to such Maximum Liability, except to the extent necessary so that the obligations of any Loan Party Obligor hereunder shall not
be rendered voidable under applicable law. Each Loan Party Obligor agrees that the Obligations may at any time and from time to
time exceed the Maximum Liability of each Loan Party Obligor without impairing this Loan Guaranty or affecting the rights and remedies
of Lender hereunder, provided that nothing in this sentence shall be construed to increase any Loan Party Obligor’s
obligations hereunder beyond its Maximum Liability.

 

8.10        Contribution.

 

(a)          To
the extent that any Loan Party Obligor shall make a payment under this Loan Guaranty of all or any of the Obligations (other than
Loans made to that Loan Party Obligor, if applicable, for which it is primarily liable) (a “Guarantor Payment”)
that, taking into account all other Guarantor Payments then previously or concurrently made by any other Loan Party Obligor, exceeds
the amount that such Loan Party Obligor would otherwise have paid if each Loan Party Obligor had paid the aggregate Obligations
satisfied by such Guarantor Payment in the same proportion that such Loan “Allocable Amount” (as defined below) (as
determined immediately prior to such Guarantor Payment) bore to the aggregate Allocable Amounts of each Loan Party Obligor as determined
immediately prior to the making of such Guarantor Payment, then, following indefeasible payment in full in cash of the Obligations
and termination of all Lender’s lending commitments, such Loan Party Obligor shall be entitled to receive contribution and
indemnification payments from, and be reimbursed by, each Loan Party Obligor Borrower for the amount of such excess, pro rata based
upon their respective Allocable Amounts in effect immediately prior to such Guarantor Payment.

 

(b)          As
of any date of determination, the “Allocable Amount” of any Loan Party Obligor shall be equal to the maximum amount
of the claim that could then be recovered from such Loan Party Obligor under this Loan Guaranty without rendering such claim voidable
or avoidable under Section 548 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent
Conveyance Act or similar statute or common law.

 

(c)          This
Loan Guaranty is intended only to define the relative rights of Loan Party Obligors and nothing set forth in this Loan Guaranty
is intended to or shall impair the obligations of Loan Party Obligors, jointly and severally, to pay any amounts as and when the
same shall become due and payable in accordance with the terms of this Agreement, including this Loan Guaranty. Nothing contained
in this Loan Guaranty shall limit the liability of any Loan Party Obligor to pay the Loans made directly or indirectly to that
Loan Party Obligor, if applicable, and accrued interest, fees and expenses with respect thereto for which such Loan Party Obligor
shall be primarily liable.

 

8.11        Liability
Cumulative. The liability of each Loan Party Obligor under this Section 8 is in addition to
and shall be cumulative with all liabilities of each Loan Party Obligor to Lender under this Agreement and the other Loan Documents
to which such Loan Party Obligor is a party or in respect of any obligations or liabilities of the other Loan Party Obligors, without
any limitation as to amount, unless the instrument or agreement evidencing or creating such other liability specifically provides
to the contrary.

 

8.12       Subordination.
Each of the Persons composing Loan Party Obligors hereby agrees that, after the occurrence and during the continuance of any Default
or Event of Default, the payment of any amounts due with respect to the Indebtedness or other liabilities owing by any Loan Party
Obligor to any other Loan Party Obligor is hereby subordinated to the prior payment in full in cash of the Obligations and the
termination of all of Lender’s lending commitments under this Agreement. Each Loan Party Obligor hereby agrees that after
the occurrence and during the continuance of any Default or Event of Default, such Loan Party Obligor will not demand, sue for
or otherwise attempt to collect any indebtedness or any such liability of any other Loan Party Obligor owing to such Loan Party
Obligor until the Obligations shall have been paid in full in cash and the termination of all of Lender’s lending commitments
under this Agreement. If, notwithstanding the foregoing sentence, such Loan Party Obligor shall collect, enforce or receive any
amounts in respect of such indebtedness or liabilities, such amounts shall be collected, enforced and received by such Loan Party
Obligor as trustee for Lender, and such Loan Party Obligor shall deliver any such amounts to Lender for application to the Obligations
in accordance with Section 4.2.

 

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		9.	PAYMENTS FREE OF TAXES; OBLIGATION TO WITHHOLD; PAYMENTS
ON ACCOUNT OF TAXES.

 

(a)          Any
and all payments by or on account of any obligation of the Loan Party Obligors hereunder or under any other Loan Document shall
to the extent permitted by applicable laws be made free and clear of and without reduction or withholding for any Taxes. If, however,
applicable laws require the Loan Party Obligors to withhold or deduct any Tax, such Tax shall be withheld or deducted in accordance
with such laws as the case may be, upon the basis of the information and documentation to be delivered pursuant to subsection (e)
below.

 

(b)          If
any Loan Party Obligor shall be required by applicable law to withhold or deduct any Taxes from any payment, then (A) such Loan
Party Obligor shall withhold or make such deductions as are required based upon the information and documentation it has received
pursuant to subsection (e) below, (B) such Loan Party Obligor shall timely pay the full amount withheld or deducted to the relevant
Governmental Authority in accordance with the applicable law, and (C) to the extent that the withholding or deduction is made on
account of Indemnified Taxes, the sum payable by the Loan Party Obligors shall be increased as necessary so that after any required
withholding or the making of all required deductions (including deductions applicable to additional sums payable under this Section)
Lender or other Recipient receives an amount equal to the sum it would have received had no such withholding or deduction been
made. Upon request by Lender or other Recipient, Borrower shall deliver to Lender or such other Recipient, as the case may be,
the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment of Taxes, a copy of
any return required by applicable law to report such payment or other evidence of such payment reasonably satisfactory to Lender
or such other Recipient, as the case may be.

 

(c)          Without
limiting the provisions of subsections (a) and (b) above, the Loan Party Obligors shall timely pay any Other Taxes to the relevant
Governmental Authority in accordance with applicable law.

 

(d)          Without
limiting the provisions of subsections (a) through (c) above, each Loan Party Obligor shall, and does hereby, on a joint and several
basis, indemnify Lender and each other Recipient (and their respective directors, officers, employees, affiliates and agents) and
shall make payment in respect thereof within 10 days after demand therefor, for the full amount of any Indemnified Taxes and Other
Taxes (including Indemnified Taxes and Other Taxes imposed or asserted on or attributable to amounts payable under this Section
9) paid or incurred by Lender or any other Recipient on account of, or in connection with any Loan Document or a breach by a Loan
Party Obligor thereof, and any penalties, interest and related expenses and losses arising therefrom or with respect thereto (including
the reasonable fees, charges and disbursements of any counsel or other tax advisor for Lender or any other Recipient (or their
respective directors, officers, employees, affiliates, and agents)), whether or not such Indemnified Taxes or Other Taxes were
correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of any such payment
or liability delivered to Borrower shall be conclusive absent manifest error. Notwithstanding any provision in this Agreement to
the contrary, this Section 9 shall remain operative even after the Termination Date and shall survive the payment in full of all
of the Loans.

 

(e)          Lender
shall deliver to Borrower and each Participant shall deliver to the applicable Lender granting the participation, at the time or
times prescribed by applicable laws, such properly completed and executed documentation prescribed by applicable laws or by the
taxing authorities of any jurisdiction and such other reasonably requested information as will permit Borrower or Lender granting
a participation, as the case may be, to determine (A) whether or not payments made hereunder or under any other Loan Document are
subject to Taxes, (B) if applicable, the required rate of withholding or deduction, and (C) Lender’s or Participant’s
entitlement to any available exemption from, or reduction of, applicable Taxes in respect of all payments to be made to such Recipient
by the Loan Party Obligors pursuant to this Agreement or otherwise to establish such Recipient’s status for withholding tax
purposes in the applicable jurisdiction; provided each Recipient shall only be required to deliver such documentation
as it may legally provide.

 

Without limiting the generality
of the foregoing, if a Borrower is resident for tax purposes in the United States:

 

    	 	31	 

     

    

 

(i)          if
Lender (or any Participant) is a “United States person” within the meaning of Section 7701(a)(30) of the Code, it shall
deliver to Borrower (or Lender if it has granted a participation to such Participant) an executed original of Internal Revenue
Service Form W-9 or such other documentation or information prescribed by applicable law or reasonably requested by Borrower (or
Lender if it has granted a participation to such Participant) as will enable Borrower (or Lender if it has granted a participation
to such Participant) as the case may be, to determine whether or not Lender (or such Participant) is subject to backup withholding
or information reporting requirements under the Code; or

 

(ii)         if
Lender (or any Participant) is not a “United States person” within the meaning of Section 770(a)(30) of the Code (a
“Non-U.S. Recipient”), it shall deliver to Borrower (and Lender in case the Non-U.S. Recipient is a Participant)
on or prior to the date on which such Non-U.S. Person becomes a party to this Agreement or a Participant (and from time to time
thereafter upon the reasonable request of Borrower or Lender granting the participation but only if such Non-U.S. Recipient is
legally entitled to do so), whichever of the following is applicable: (I) executed originals of Internal Revenue Service Form W-8BEN-E
or successor form claiming eligibility for benefits of an income tax treaty to which the United States is a party; (II) executed
originals of Internal Revenue Service Form W-8ECI; (III) executed originals of Internal Revenue Service Form W-8IMY and all required
supporting documentation; (IV) each Non-U.S. Recipient claiming the benefits of the exemption for portfolio interest under section
881(c) of the Code shall provide (x) a certificate to the effect that such Non-U.S. Recipient is not (A) a “bank” within
the meaning of section 881(c)(3)(A) of the Code, (B) a “10 percent shareholder” of Borrower within the meaning of section
881(c)(3)(B) of the Code, or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and
(y) executed originals of Internal Revenue Service Form W-8BEN; and/or (V) executed originals of any other form prescribed by applicable
law (including FATCA) as a basis for claiming exemption from or a reduction in United States Federal withholding tax together with
such supplementary documentation as may be prescribed by applicable law to permit Borrower or Lender granting a participation to
determine the withholding or deduction required to be made. Each Non-U.S. Recipient shall promptly notify Borrower (or any Lender
granting a participation if the Non-U.S. Recipient is a Participant) of any change in circumstances which would modify or render
invalid any claimed exemption or reduction.

 

(f)          If
a payment made to Lender or other Recipient under any Loan Document would be subject to U.S. federal withholding Tax imposed by
FATCA if Lender or such other Recipient were to fail to comply with the applicable reporting requirements of FATCA (including those
contained in Section 1471(b) or 1472(b) of the Code, as applicable), Lender or such other Recipient shall deliver to Borrower at
the time or times prescribed by law and at such time or times reasonably requested by Borrower such documentation prescribed by
applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested
by Borrower as may be necessary for Borrower to comply with its obligations under FATCA and to determine that Lender has complied
with Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment.

 

(g)          If
any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it
has been indemnified pursuant to this Section 9 (including by the payment of additional amounts pursuant to this Section 9), it
shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this
Section 9 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified
party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such
indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant
to this paragraph (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in
the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything
to the contrary in this paragraph (g), in no event will the indemnified party be required to pay any amount to an indemnifying
party pursuant to this paragraph (g) the payment of which would place the indemnified party in a less favorable net after-Tax position
than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been
deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never
been paid. This paragraph shall not be construed to require any indemnified party to make available its Tax returns (or any other
information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

 

    	 	32	 

     

    

 

		10.	GENERAL PROVISIONS.

 

10.1       Notices.

 

(a)          Notice
by Approved Electronic Communications.

 

Lender and each of its
Affiliates are authorized to transmit, post or otherwise make or communicate, in its sole discretion (but shall not be required
to do so), by Approved Electronic Communications in connection with this Agreement or any other Loan Document and the transactions
contemplated therein. Lender is hereby authorized to establish procedures to provide access to and to make available or deliver,
or to accept, notices, documents and similar items by posting to an electronic platform designated by Lender. All uses of Approved
Electronic Communications shall be governed by and subject to, in addition to the terms of this Agreement, the separate terms,
conditions and privacy policy posted or referenced in such system (or such terms, conditions and privacy policy as may be updated
from time to time, including on such system, such updates not to materially degrade the rights of users under such terms, conditions,
and privacy policy) and any related contractual obligations executed by Lender and Loan Party Obligors in connection with the use
of such system. None of Lender or any of its Affiliates or related Persons warrants the availability of any electronic platform,
and Lender and such Affiliates disclaim all liability for downtime therein. No warranty of any kind is made by Lender or any of
its Affiliates or related Persons in connection with any electronic platform with respect to (i) the merchantability of such platform,
(ii) the platform's fitness for a particular purpose, (iii) non-infringement of third-party rights due to the functions or performance
of the platform or its use, (iv) the freedom of the platform from viruses or other code defects, or (v) the availability of the
platform. Each of Borrower and each other Loan Party Obligor executing this Agreement agrees that Lender has no responsibility
for maintaining or providing any client-side equipment, software, services or any testing required in connection with any Approved
Electronic Communication or otherwise required for any Approved Electronic Communication.

 

No Approved Electronic
Communications shall be denied legal effect merely because it is made electronically. Approved Electronic Communications that are
not readily capable of bearing either a signature or a reproduction of a signature may be signed, and shall be deemed signed, by
attaching to, or logically associating with such Approved Electronic Communication, an E-Signature, upon which Lender and the Loan
Party Obligors may rely and assume the authenticity thereof. Each Approved Electronic Communication containing a signature, a reproduction
of a signature or an E-Signature shall, for all intents and purposes, have the same effect and weight as a signed paper original.
Each E-Signature shall be deemed sufficient to satisfy any requirement for a “signature” and each Approved Electronic
Communication shall be deemed sufficient to satisfy any requirement for a “writing,” in each case including pursuant
to this Agreement, any other Loan Document, the Uniform Commercial Code, the Federal Electronic Signatures in Global and National
Commerce Act (“ESIGN”), State enactments of the Uniform Electronic Transactions Act (and equivalents) and any substantive
or procedural law governing such subject matter. Each party or beneficiary hereto agrees not to contest the validity or enforceability
of an Approved Electronic Communication or E-Signature under the provisions of any applicable law requiring certain documents to
be in writing or signed, provided that nothing herein shall limit such party’s or beneficiary’s right
to contest whether an Approved Electronic Communication or E-Signature has been altered after transmission.

 

(b)          All
Other Notices.

 

All notices, requests,
demands and other communications under or in respect of this Agreement or any transactions hereunder, other than those approved
for or required to be delivered by Approved Electronic Communications (including pursuant to Section 10.1(a)), shall be in writing
and shall be personally delivered or mailed (by prepaid registered or certified mail, return receipt requested), sent by prepaid
recognized overnight courier service, or sent by email to the applicable party at its address or email address indicated below,

 

If to Lender:

 

Santander Bank, N.A.

Mail Code: MA2-6560-CB16

28 State Street, 16th Floor

Boston, MA 02109

Attention: John P. Nuzzo, Vice President

Email: johnpaul.nuzzo@Santander.us

 

    	 	33	 

     

    

 

with a copy to (provided such copy
shall not constitute notice hereunder):

 

Riemer & Braunstein LLP

Three Center Plaza, 6th
Floor

Boston, Massachusetts 02108

Attention: Kevin Murtagh, Esquire

Email: Kmurtagh@Riemerlaw.com

 

If to Administrative Borrower:

 

Janel Group, Inc.

303 Merrick Road, Suite 400

Lynbrook, New York 11563

Attention: Mr. Brendan J. Killackey

Email: bkillackey@janelcorp.com

 

with a copy to (provided such copy
shall not constitute notice hereunder):

 

Neuberger Quinn Gielen Rubin Gibber
P.A.

One South Street, 27th Floor

Baltimore, Maryland 21202

Attention: Hillel Tender, Esquire

Email: HT@NQGRG.com

 

or, as to each party, at such other address
as shall be designated by such party in a written notice to the other party delivered as aforesaid. All such notices, requests,
demands and other communications shall be deemed given (a) when personally delivered, (b) three Business Days after being deposited
in the mails with postage prepaid (by registered or certified mail, return receipt requested), (c) one Business Day after being
delivered to the overnight courier service, if prepaid and sent overnight delivery, addressed as aforesaid and with all charges
prepaid or billed to the account of the sender, or (d) when sent by email transmission to an email address designated by such addressee
and the sender receives a confirmation of transmission.

 

10.2       Severability.
If any provision of this Agreement or any other Loan Document is held invalid or unenforceable, either in its entirety or by virtue
of its scope or application to given circumstances, such provision shall thereupon be deemed modified only to the extent necessary
to render same valid, or not applicable to given circumstances, or excised from this Agreement or such other Loan Document, as
the situation may require, and this Agreement and the other Loan Documents shall be construed and enforced as if such provision
had been included herein as so modified in scope or application, or had not been included herein or therein, as the case may be.

 

10.3       Integration.
This Agreement and the other Loan Documents represent the final, entire and complete agreement between each Loan Party Obligor
and thereto and Lender and supersede all prior and contemporaneous negotiations, oral representations and agreements, all of which
are merged and integrated into this Agreement. THERE ARE NO ORAL UNDERSTANDINGS, REPRESENTATIONS OR AGREEMENTS BETWEEN THE PARTIES
THAT ARE NOT SET FORTH IN THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS.

 

10.4       Waivers.
The failure of Lender at any time or times to require any Loan Party Obligor to strictly comply with any of the provisions of this
Agreement or any other Loan Document shall not waive or diminish any right of Lender later to demand and receive strict compliance
therewith. Any waiver of any default shall not waive or affect any other default, whether prior or subsequent, and whether or not
similar. None of the provisions of this Agreement or any other Loan Document shall be deemed to have been waived by any act or
knowledge of Lender or its agents or employees, but only by a specific written waiver signed by an authorized officer of Lender
and delivered to Borrower. Once an Event of Default shall have occurred, it shall be deemed to continue to exist and not be cured
or waived unless specifically waived in writing by an authorized officer of Lender and delivered to Borrower. Each Loan Party Obligor
waives demand, protest, notice of protest and notice of default or dishonor, notice of payment and nonpayment, release, compromise,
settlement, extension or renewal of any commercial paper, Instrument, Account, General Intangible, Document, Chattel Paper, Investment
Property or guaranty at any time held by Lender on which such Loan Party Obligor is or may in any way be liable, and notice of
any action taken by Lender, unless expressly required by this Agreement, and notice of acceptance hereof.

 

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10.5        Amendment.
This Agreement may not be amended or modified except in a writing executed by Borrower, the other Loan Party Obligors party hereto
(to the extent such amendment is directly adverse to such Loan Party Obligor), and Lender.

 

10.6        Time
of Essence. Time is of the essence in the performance by each Loan Party Obligor of each and
every obligation under this Agreement and the other Loan Documents.

 

10.7        Expenses,
Fee and Costs Reimbursement. Borrower hereby agrees to promptly pay: (i) all reasonable out of pocket costs and expenses of
Lender (including the out of pocket fees, costs and expenses of legal counsel to, and appraisers, accountants, consultants and
other professionals and advisors retained by or on behalf of Lender) in connection with: (A) all loan proposals and commitments
pertaining to the transactions contemplated hereby (whether or not such transactions are consummated), (B) the examination, review,
due diligence investigation, documentation, negotiation, and closing of the transactions contemplated by the Loan Documents (whether
or not such transactions are consummated), (C) the creation, perfection and maintenance of Liens pursuant to the Loan Documents,
(D) the performance by Lender of its rights and remedies under the Loan Documents, including enforcing or defending the Loan Documents,
irrespective of whether suit is brought, or in taking any action in respect of Collateral, (E) the administration of the Loans
(including usual and customary fees for wire transfers and other transfers or payments received by Lender on account of any of
the Obligations) and Loan Documents, (F) any amendments, modifications, consents and waivers to or under any and all Loan Documents
(whether or not such amendments, modifications, consents or waivers are consummated), (G) any periodic public record searches conducted
by or at the request of Lender (including title investigations and public records searches), pending litigation and tax lien searches
and searches of applicable corporate, limited liability company, partnership and related records concerning the continued existence,
organization and good standing of certain Persons, (H) audits, inspections and examination (including field examinations) up to
the amount of any limitation in this Agreement, (I) protecting, storing, insuring, handling, maintaining, auditing, examining,
valuing or selling any Collateral, (J) any litigation, dispute, suit or proceeding relating to any Loan Document, and (K) any workout,
collection, bankruptcy, insolvency and other enforcement proceedings under any and all of the Loan Documents (it being agreed that
such costs and expenses may include the costs and expenses of workout consultants, investment bankers, financial consultants, appraisers,
valuation firms and other professionals and advisors retained by or on behalf of Lender); and (ii) without limitation of the preceding
clause (i), all out of pocket costs and expenses of Lender in connection with Lender’s reservation of funds in anticipation
of the funding of the initial Loans to be made hereunder. Any fees, costs and expenses owing by Borrower or other Loan Party Obligor
hereunder shall be due and payable within three days after written demand therefor.

 

10.8        Benefit
of Agreement; Assignability. The provisions of this Agreement shall be binding upon and inure
to the benefit of the respective successors, assigns, heirs, beneficiaries and representatives of Borrower, each other Loan Party
Obligor and Lender; provided that, neither Borrower nor any other Loan Party Obligor may assign or transfer any of
its rights under this Agreement without the prior written consent of Lender, and any prohibited assignment shall be void. No consent
by Lender to any assignment shall release any Loan Party Obligor from its liability for any of the Obligations. Lender shall have
the right to assign all or any of its rights and obligations under the Loan Documents to one or more other Persons, and each Loan
Party Obligor agrees to execute all agreements, instruments and documents requested by Lender in connection with each such assignments.
Notwithstanding any provision of this Agreement or any other Loan Document to the contrary, Lender may at any time pledge or grant
a security interest in all or any portion of its rights under this Agreement and the other Loan Documents to secure obligations
of Lender, including any pledge or grant to secure obligations to a Federal Reserve Bank.

 

10.9        Recordation
of Assignment. In respect of any assignment of all or any portion of Lender’s interest
in this Agreement and any other Loan Document at any time and from time to time, the following provisions shall be applicable:

 

(a)          Borrower,
or any agent appointed by Borrower, shall maintain a register (the “Register”) in which there shall be
recorded the name and address of each Person holding any Loans or any commitment to lend hereunder, and the principal amount and
stated interest payable to such Person hereunder or committed by such Person under such Person’s lending commitment. Borrower
hereby irrevocably appoints Lender (or any assignee of Lender) as Borrower’s non-fiduciary agent for the purpose of maintaining
the Register.

 

    	 	35	 

     

    

 

(b)          In
connection with any negotiation, transfer or assignment as aforesaid, the transferor/assignor shall deliver to Lender (or such
assignee then maintaining the Register) an assignment and assumption agreement executed by the transferor/assignor and the transferee/assignee,
setting forth the specifics of the subject transaction, including the amount and nature of the Obligations or lending commitments
being transferred or assigned (and being assumed, as applicable), and the proposed effective date of such transfer or assignment
and the related assumption (if applicable).

 

(c)          Subject
to receipt of any required tax forms reasonably required by Lender, such Person shall record the subject transfer, assignment and
assumption in the Register. Anything contained in this Agreement or other Loan Document to the contrary notwithstanding, no negotiation,
transfer or assignment shall be effective until it is recorded in the Register pursuant to this Section 10.9(c). The entries in
the Register shall be conclusive and binding for all purposes, absent manifest error, and Borrower and each Lender shall treat
each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement and the other Loan
Documents. The Register shall be available for inspection by Borrower and each Lender at any reasonable time and from time to time
upon reasonable prior notice.

 

10.10     Participations.
Anything in this Agreement or any other Loan Document to the contrary notwithstanding, Lender may), at any time and from time to
time, without in any manner affecting or impairing the validity of any Obligations, sell to one or more Persons participating interests
in its Loans, commitments or other interests hereunder or under any other Loan Document (any such Person, a “Participant”).
In the event of a sale by Lender of a participating interest to a Participant, (a) such Lender’s obligations hereunder and
under the other Loan Documents shall remain unchanged for all purposes, (b) Borrower and Lender shall continue to deal solely and
directly with each other in connection with Lender’s rights and obligations hereunder and under the other Loan Documents,
and (c) all amounts payable by Borrower shall be determined as if Lender had not sold such participation and shall be paid directly
to Lender, provided, however, a Participant shall be entitled to the benefits of Section 9 as if it were a Lender
if Borrower is notified of the Participation and the Participant complies with Section 9(e). Borrower agrees that if amounts outstanding
under this Agreement or any other Loan Document are due and payable (as a result of acceleration or otherwise), each Participant
shall be deemed to have the right of set-off in respect of its participating interest in amounts owing under this Agreement and
the other Loan Documents to the same extent as if the amount of its participating interest were owing directly to it as a Lender
under this Agreement; provided that such right of set-off shall not be exercised without the prior written consent
of Lender and shall be subject to the obligation of each Participant to share with Lender its share thereof. Borrower also agrees
that each Participant shall be entitled to the benefits of Section 10.9 as if it were Lender. Notwithstanding the granting of any
such participating interests: (i) Borrower shall look solely to Lender for all purposes of this Agreement, the Loan Documents and
the transactions contemplated hereby, (ii) Borrower shall at all times have the right to rely upon any amendments, waivers or consents
signed by Lender as being binding upon all of the Participants, and (iii) all communications in respect of this Agreement and such
transactions shall remain solely between Borrower and Lender (exclusive of Participants) hereunder. Lender granting a participation
hereunder shall maintain, as a non-fiduciary agent of Borrower, a register as to the participations granted and transferred under
this Section containing the same information specified in Section 10.9 on the Register as if the each Participant were a Lender
to the extent required to cause the Loans to be in registered form for the purposes of Sections 163(F), 165(J), 871, 881, and 4701
of the Code.

 

10.11     Headings;
Construction. Section and subsection headings are used in this Agreement only for convenience
and do not affect the meanings of the provisions that they precede.

 

10.12     USA
PATRIOT Act Notification. Lender hereby notifies the Loan Party Obligors that, pursuant to
the requirements of the Patriot Act, it may be required to obtain, verify and record certain information and documentation that
identifies such Person, which information may include the name and address of each such Person and such other information that
will allow Lender to identify such Persons in accordance with the Patriot Act.

 

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10.13     Confidentiality
and Publicity.

 

(a)          Loan
Party Obligors agree to submit to Lender, and Lender reserves the right to review and approve, all materials that Loan Obligor
Parties or any of their Affiliates prepares and which are intended for public disclosure or disclosure to a third party not otherwise
permitted under the immediately preceding sentence, that contain Lender’s name or describe or refer to any Loan Document,
any of the terms thereof or any of the transactions contemplated thereby. Loan Obligor Parties shall not, and shall not permit
any of their respective Affiliates to, use Lenders’ name (or the name of any of Lenders’ Affiliates) in connection
with any of its business operations, including advertising, marketing or press releases or such other similar purposes, without
Lender’s prior written consent, not to be unreasonably withheld, conditioned or delayed.

 

(b)          Lender
shall exercise commercially reasonable efforts to maintain in confidence, in accordance with its customary procedures for handling
confidential information, all Confidential Information, provided, that Lender and its Affiliates shall have the right
to disclose Confidential Information to the following Persons (and with respect to Persons covered under clauses (i), (ii), (iii),
(iv), (v) and (vi), if it directs such Persons not to disclose such Confidential Information as required under this Agreement):

 

(i)          such
Person’s Affiliates;

 

(ii)         such
Person’s or such Person’s Affiliates’ lenders, funding or financing sources and rating agencies;

 

(iii)        such
Person’s or such Person’s Affiliates’ directors, officers, trustees, partners, members, managers, employees,
agents, advisors, representatives, attorneys, equity owners, professional consultants and portfolio management services;

 

(iv)        any
successor or assign of any Lender;

 

(v)         any
Person to whom any Lender offers to sell, assign or transfer any Loan or any part thereof or any interest or participation therein;

 

(vi)        any
Person that provides statistical analysis and/or information services to Lender or its Affiliates;

 

(vii)       any
Person (A) to the extent required by applicable law, (B) in response to any subpoena or other legal process or informal investigative
demand, (C) in connection with any litigation, or (D) in connection with the actual or potential exercise or enforcement of any
right or remedy under any Loan Document; and

 

(viii)      any
Person to the extent required by any subordination or intercreditor agreement relating to the Obligations.

 

(c)          Notwithstanding
any provision of any Loan Document, Borrower and each other Loan Party Obligors consent to the publication by Lender of a tombstone,
press releases or similar advertising material relating to the financing transactions contemplated by this Agreement, and Lender
reserves the right to provide to industry trade organizations information necessary and customary for inclusion in league table
measurements.

 

(d)          The
obligations of Lender and its Affiliates under this Section 10.13 shall supersede and replace any other confidentiality obligations
agreed to by Lender or its Affiliates.

 

10.14      Counterparts;
Fax/Email Signatures. This Agreement may be executed in any number of counterparts, all of
which shall constitute one and the same agreement. This Agreement may be executed by signatures delivered by facsimile or electronic
mail, each of which shall be fully binding on the signing party.

 

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10.15         GOVERNING
LAW. THIS AGREEMENT, ALONG WITH ALL OTHER LOAN DOCUMENTS (UNLESS EXPRESSLY PROVIDED OTHERWISE
IN SUCH OTHER LOAN DOCUMENT), SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK APPLICABLE
TO CONTRACTS MADE AND TO BE PERFORMED THEREIN WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES (EXCEPT 5-1401 AND 5-1402 OF THE NEW
YORK GENERAL OBLIGATION LAW). FURTHER, THE LAW OF THE STATE OF NEW YORK SHALL APPLY TO ALL DISPUTES OR CONTROVERSIES ARISING OUT
OF OR CONNECTED TO OR WITH THIS AGREEMENT AND ALL SUCH OTHER LOAN DOCUMENTS WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES (EXCEPT
5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATION LAW).

 

10.16         CONSENT
TO JURISDICTION; WAIVER OF JURY TRIAL. THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING
IN CONNECTION WITH THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS TO WHICH ANY LOAN PARTY OBLIGOR IS A PARTY SHALL BE TRIED AND LITIGATED
ONLY IN THE STATE 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 LENDER’S
OPTION, IN THE COURTS OF ANY JURISDICTION WHERE LENDER ELECTS TO BRING SUCH ACTION OR WHERE SUCH COLLATERAL OR OTHER PROPERTY MAY
BE FOUND. EACH LOAN PARTY OBLIGOR AND LENDER 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
10.16. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE LAW, EACH LOAN PARTY OBLIGOR AND LENDER HEREBY WAIVE THEIR RESPECTIVE RIGHTS,
IF ANY, TO A JURY TRIAL OF ANY CLAIM, CONTROVERSY, DISPUTE OR CAUSE OF ACTION DIRECTLY OR INDIRECTLY BASED UPON OR ARISING OUT
OF ANY OF THE LOAN DOCUMENTS OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING CONTRACT CLAIMS, TORT CLAIMS, BREACH OF
DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER AND LENDER REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND
EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION,
A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

[Signature page follows]

 

    	 	38	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have signed this Agreement as of the date first set forth above.

 

	 	Borrower:
	 	 
	 	JANEL GROUP, INC., a New York corporation
	 	 	 
	 	By:	/s/
	 	Name:	Brendan J. Killackey
	 	Title:  	Vice President
	 	 	 
	 	PCL TRANSPORT, LLC, a New Jersey limited liability company
	 	 	 
	 	By:	/s/
	 	Name:	Brendan J. Killackey
	 	Title:  	Vice President
	 	 	 
	 	JANEL ALPHA GP, LLC, a Delaware limited liability company
	 	 	 
	 	By:	/s/
	 	Name:	Brendan J. Killackey
	 	Title:  	Vice President
	 	 	 
	 	W.J. BYRNES & CO., INC., a California corporation
	 	 	 
	 	By:	/s/
	 	Name:	Brendan J. Killackey
	 	Title:  	Vice President
	 	 	 
	 	LIBERTY INTERNATIONAL, INC., a Rhode Island corporation
	 	 	 
	 	By:	/s/
	 	Name:	Brendan J. Killackey
	 	Title:  	Vice President

 

     

     

    

 

	 	THE JANEL GROUP OF GEORGIA, INC., a Georgia corporation
	 	 	 
	 	By:	/s/
	 	Name:	Brendan J. Killackey
	 	Title:  	Vice President
	 	 	 
	 	Loan Party Obligors:
	 	 	 
	 	JANEL CORPORATION, a Nevada corporation
	 	 	 
	 	By:	/s/
	 	Name:	Brendan J. Killackey
	 	Title:  	President and Chief Executive Officer
	 	 	 
	 	Lender:	 
	 	 	 
	 	SANTANDER BANK, N.A.
	 	 	 
	 	By:	/s/
	 	Name:  	 
	 	Title:	 
	 	 	 
	 	By:	/s/
	 	Name:  	 
	 	Title:	 

 

     

     

    

 

Disclosure Schedule

 

Section 1

 

(a)          Jurisdictions
of Formation; Foreign Business Qualifications:

 

	LOAN PARTY	 	JURISDICTION OF

FORMATION	 	FOREIGN BUSINESS QUALIFICATIONS
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

(b)          Names:

 

	LOAN PARTY

OBLIGOR LEGAL

NAME	 	PRIOR LEGAL NAMES	 	EXISTING TRADE NAMES	 	PRIOR TRADE NAMES
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

(c)          Collateral
Locations1:

 

	LOAN PARTY

OBLIGOR	 	COLLATERAL

DESCRIPTION	 	COLLATERAL LOCATION

OR PLACE OF BUSINESS

(INCLUDING CHIEF EXECUTIVE

OFFICE)	 	OWNER/LESSOR

(IF LEASED)
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 

 

 

1 Limit representation to chief executive office and
offices where there is equipment valued in the aggregate at more than $25,000

 

    	 	Disclosure Schedule - 1	 

     

    

 

(d)          Collateral
in Possession of Lessor, Bailee, Consignee, or Warehouseman:

 

	LOAN PARTY OBLIGOR	 	ADDRESS	 	LESSOR/BAILEE/CONSIGNEE/

WAREHOUSEMAN
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

(e)          Litigation:                                                                        
None

 

(f)          Capitalization
of Loan Parties:

 

	Loan Party	 	Equity-holder	 	Equity
    Description	 	Percentage of

Outstanding

Equity Issued

by Loan Party	 	Certificate

(Indicate No.)
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

(g)          Other
Investment Property:

 

	Loan Party	 	Investment Property Description
	 	 	 
	 	 	 
	 	 	 

 

(h)          Material
Contracts

 

2.          Commercial
Tort Claims

 

    	 	Disclosure Schedule - 2	 

     

    

 

3.          Deposit
Accounts / Other accounts:

 

	Loan Party Obligor	 	Name of Financial 

Institution	 	Account
Number

(* indicates account

is approved for

funding of loan

proceeds)	 	Purpose of

Account	 	Is the Account a 

“Restricted 

Account” as 

defined in 

Schedule B (Yes

or No?)
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

4.          Intellectual
Property:

 

(a)          Patents
and Patent Licenses

 

	Loan Party

Obligor	 	Patent Registration

Number	 	Registration Date	 	Patent Application

Number	 	Application Date
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

(b)          Trademarks
and Trademark Licenses

 

	Loan Party

Obligor	 	Trademark Title	 	Trademark

Application Number	 	Trademark

Registration

Number	 	Date of

Application	 	Date of

Registration
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 

 

    	 	Disclosure Schedule - 3	 

     

    

 

(c)          Copyrights
and Copyright Licenses

 

	Loan Party Obligor	 	Copyright Title	 	Copyright Registration Date	 	Copyright

Registration

Number	 	Copyright Application

Number
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 

 

5.          Insurance:

 

6.          Permitted
Indebtedness:

 

7.          Permitted
Liens:

 

    	 	Disclosure Schedule - 4	 

     

    

 

1(h). Material Contracts

 

(i) Employment Agreements

 

(ii) Collective Bargaining

 

(iii) Managerial or Consulting Agreements

 

(iv) Agreement regarding assets or operations

 

(v) Patent, Trademark, Copyright Licenses

 

(vi) Distribution or Supply Agreements

 

(vii) Customer agreements

 

(viii) LLC Agreements

 

(ix) Real Estate Leases

 

(x) Agreements which breach of such agreement
could result in a Material Adverse Effect

 

    	 	Disclosure Schedule - 5	 

     

    

 

Schedule A

 

Description of Certain Terms

 

	1.         Loan Limits for Revolving Loans and Letters of Credit:	 	 
	a)  Maximum Revolving Facility Amount:	 	$10,000,000 
	(b)  Accounts Advance Rate:	 	85%
	(c)  Foreign Accounts Sublimit:	 	$1,500,000
	(e)  Letter of Credit Limit:	 	$500,000
	2.          Interest Rates:	 	 
	(a)  Base Rate Loans: 	 	Base Rate plus Base Rate Margin 
	(b)  LIBOR Rate Loans:	 	LIBOR Rate plus LIBOR Rate Margin
	3.          Maximum Days re Eligible Accounts:	 	 
	(a)  Maximum days:	 	More than ninety (90) days from invoice date and sixty (60) days from due date
	 	 	 
	4.          Maturity Date:	 	October 17, 2020

 

    	 	 Schedule A-1	 

     

    

 

Schedule B

 

Definitions

 

Unless otherwise defined
herein, the following terms are used herein as defined in the UCC: Account, Account Debtor, Certificated Security, Chattel Paper,
Commercial Tort Claim, Deposit Account, Document, Electronic Chattel Paper, Equipment, Farm Products, Fixtures, General Intangibles,
Goods, Health-Care-Insurance Receivable, Instrument, Inventory, Letter-of-Credit Right, Proceeds, Supporting Obligations and Tangible
Chattel Paper.

 

As used in this Agreement,
the following terms have the following meanings:

 

“Accounts Advance
Rate” means the percentage set forth in Section 1(b) of Schedule A.

 

“Advance Rates”
means the Accounts Advance Rate.

 

“Affiliate”
means, with respect to any Person, any other Person in control of, controlled by, or under common control with the first Person,
and any other Person who has a substantial interest, direct or indirect, in the first Person or any of its Affiliates, including
any officer or director of the first Person or any of its Affiliates. For the purpose of this definition, a “substantial
interest” shall mean the direct or indirect legal or beneficial ownership of more than ten (10%) percent of any class of
equity or similar interest.

 

“Agent”
means a third-party domestic or foreign, non-vessel operating common carrier or freight forwarder with whom a Loan Party Obligor
contracts to perform certain services for such Loan Party related to the delivery of freight.

 

“Agreement”
and “this Agreement” has the meaning set forth in the preamble to this Agreement.

 

“Allocable Amount”
has the meaning set forth in Section 8.10.

 

“Approved Electronic
Communication” means each notice, demand, communication, information, document and other material transmitted, posted
or otherwise made or communicated by e-mail, facsimile, or electronic service, whether owned, operated or hosted by Lender, any
of its Affiliates or any other Person, that any party is obligated to, or otherwise chooses to, provide to Lender pursuant to this
Agreement or any other Loan Document, including any financial statement, financial and other report, notice, request, certificate
and other information or material; provided that Approved Electronic Communications shall not include any notice,
demand, communication, information, document or other material that Lender specifically instructs a Person to deliver in physical
form.

 

“Bankruptcy Code”
means the United States Bankruptcy Code (11 U.S.C. § 101 et seq.).

 

“Base Rate”
means the rate of interest per annum from time to time published in the money rates section of the Wall Street Journal as
the “prime rate” then in effect, provided that, if such rate of interest becomes unavailable for any
reason, the “Base Rate” means the rate of interest per annum announced by Santander Bank, N.A. from time to time as
its “prime rate” (such rate is a reference rate only and Santander bank, N.A. may make loans or other extensions of
credit at, above or below it). Any change in the “prime rate” shall take effect at the opening of business on the effective
date of the relevant change.

 

“Base Rate Loan”
means, as of any date of determination, the portion of the Revolving Loans outstanding as of such date that bears interest at a
rate determined by reference to the Base Rate.

 

“Base Rate Margin”
means .50%.

 

“Blocked Account”
has the meaning set forth in Section 4.1.

 

    	 	 Schedule B-1	 

     

    

 

“Borrower”
has the meaning set forth in the preamble to this Agreement.

 

“Borrowing Base”
means (i) the aggregate amount of Eligible Accounts in respect of which clause (vii)(1) of the definition of Eligible Account applies,
multiplied by the Accounts Advance Rate plus (ii) Eligible Accounts in respect of which clause (vii)(2) of the definition
of Eligible Account applies, multiplied by the Accounts Advance Rate (but in no event to exceed the Foreign Accounts Sublimit)
minus (iii) the Letter of Credit Balance minus (iv) all Reserves which Lender has established pursuant
to Section 1.2.

 

“Business Day”
means any day that is not a Saturday, Sunday, or other day on which banks are authorized or required to close in the state of New
York, except that, if a determination of a Business Day shall relate to a LIBOR Rate Loan, the term “Business Day”
also shall exclude any day on which banks are closed for dealings in United States dollar deposits in the London interbank market.

 

“Capital Expenditures”
means as to any Person, all expenditures which, in accordance with GAAP, would be required to be capitalized and shown on the consolidated
balance sheet of such Person, but excluding expenditures made in connection with the acquisition, replacement, substitution or
restoration of assets to the extent financed (a) from insurance proceeds (or other similar recoveries) paid on account of the loss
of or damage to the assets being replaced or restored or (b) with cash awards of compensation arising from the taking by eminent
domain or condemnation of the assets being replaced.

 

“Capitalized
Lease” means any lease which is or should be capitalized on the balance sheet of the lessee thereunder in accordance
with GAAP.

 

“Cash Taxes”
means, for the applicable period, for the Loan Parries on a consolidated basis, the aggregate of all income taxes of such Persons
as determined in accordance with GAAP, to the extent the same are paid in cash.

 

“CFC”
means a controlled foreign corporation (as such term is defined in the Code).

 

“Change of Control”
means that:

 

(a)          any
Person (other than Oaxaca and its Affiliates pursuant to the exercise of the Oaxaca Warrant) or two or more Persons acting in concert
(other than Oaxaca and its Affiliates pursuant to the exercise of the Oaxaca Warrant), shall have acquired beneficial ownership,
directly or indirectly, of equity interests of Parent (or other securities convertible into such equity interests) representing
30% or more of the combined voting power of all equity interests of Parent entitled (without regard to the occurrence of any contingency)
to vote for the election of members of the Board of Directors of Parent,

 

(b)          any
Person (other than Oaxaca and its Affiliates pursuant to the exercise of the Oaxaca Warrant) or two or more Persons acting in concert
(other than Oaxaca and its Affiliates pursuant to the exercise of the Oaxaca Warrant), shall have acquired by contract or otherwise,
or shall have entered into a contract or arrangement that, upon consummation thereof, will result in its or their acquisition of
the power to exercise, directly or indirectly, a controlling influence over the management or policies of Parent or control over
the Equity Interests of such Person entitled to vote for members of the Board of Directors of Parent on a fully-diluted basis (and
taking into account all such Equity Interests that such Person or group has the right to acquire pursuant to any option right)
representing 30% or more of the combined voting power of such Equity Interests,

 

(c)          during
any period of 24 consecutive months commencing on or after the Closing Date, the occurrence of a change in the composition of the
Board of Directors of Parent such that a majority of the members of such Board of Directors are not Continuing Directors, or

 

(d)          Parent
fails to own and control, directly or indirectly, 100% of the Equity Interests of each other Loan Party.

 

“Change of Law”
has the meaning set forth in Section 1.9.

 

    	 	 Schedule B-2	 

     

    

 

“Closing Date”
means October 17, 2017.

 

“CMLTD”
means, as of any date of calculation, the current maturities of long term Indebtedness (excluding that portion of the Obligations
consisting of Revolving Loans), as determined in accordance with GAAP.

 

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

 

“Collateral”
means all property and interests in property in or upon which a security interest, mortgage, pledge or other Lien is granted pursuant
to this Agreement or the other Loan Documents, including all of the property of each Loan Party Obligor described in Section 3.1,
other than Excluded Collateral.

 

“Collections”
has the meaning set forth in Section 4.1.

 

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

 

“Compliance Certificate”
means a compliance certificate substantially in the form of Exhibit F hereto to be signed by the Chief Financial Officer or President
of Borrower.

 

“Continuing Director”
means (a) any member of the Board of Directors who was a director (or comparable manager) of Parent on the Closing Date, and (b)
any individual who becomes a member of the Board of Directors after the Closing Date if such individual was approved, appointed
or nominated for election to the Board of Directors by a majority of the Continuing Directors.

 

“Covenant Compliance
Period” means the most recently ended quarter in any Fiscal Year.

 

“Confidential
Information” means all non-written information designated as confidential and all written information, in each case,
received from any Loan Party Obligor, or any of their Affiliates and their employees, officers, directors or advisors relating
to the Loan Party Obligors or their operations, other than any such information that becomes generally available to the public
or becomes available to Lender from a source other than any Loan Party Obligor or any of their Affiliates and their employees,
officers, directors or advisors and that is not known to such recipient to be subject to confidentiality obligations.

 

“Debt Service
Coverage Ratio” means, for the applicable period, for the Loan Parties and their Subsidiaries on a consolidated basis,
the ratio of (i) EBITDA minus Cash Taxes minus distributions and dividends paid minus unfinanced Capital Expenditures
to (ii) CMLTD plus Interest Expense paid.

 

“Debt Service
Coverage Ratio (Borrower Group)” means, for the applicable period, for the Borrower and its Subsidiaries on a consolidated
basis, the ratio of (i) EBITDA minus Cash Taxes minus distributions and dividends paid minus unfinanced
Capital Expenditures to (ii) CMLTD plus Interest Expense paid.

 

“Default”
means any event which with notice or passage of time, or both, would constitute an Event of Default.

 

“Default Rate”
has the meaning set forth in Section 2.1.

 

“Designated Deposit
Accounts” means the following deposit accounts ending with the following numbers and identified in Section 3 of the
Disclosure Schedule: Bridgehampton National Bank:, xxx0431, xxx0456, xxx0480, xxx2759, xxx0577, Presidential Financial Corporation:
xxx205, xxx208, xxx207, xxx209, Citibank, N.A, xxx838, and Wells Fargo Bank, National Association xxx5407.

 

“Dividend Payment
Conditions” means, at the date of determination with respect to any specified payment contemplated by Section 5.27(i),
that (a) no Default or Event of Default shall exist immediately before and after giving effect to such payment, (b) the Loan Party
Obligors shall be in compliance with the financial covenants set forth in Section 5.28 both before and after (calculated on a pro
forma basis after giving to such transaction), (c) both before, and after giving effect to such payment on a pro forma basis, Excess
Availability is not be less than $1,000,000, (d) Borrower shall have provided Lender with evidence, reasonably satisfactory to
Lender, that that all accounts payable are being paid in the ordinary course of Borrower’s business, and (e) prior to making
such payment, Administrative Borrower shall certify to the Lender in writing that the foregoing conditions have and will be satisfied
after the making of such payment.

 

    	 	 Schedule B-3	 

     

    

 

“Dollars”
or “$”means United States Dollars, lawful currency for the payment of public and private debts.

 

“E-Signature”
means the process of attaching to or logically associating with an Approved Electronic Communication an electronic symbol, encryption,
digital signature or process (including the name or an abbreviation of the name of the party transmitting the Approved Electronic
Communication) with the intent to sign, authenticate or accept such Approved Electronic Communication.

 

“EBITDA”
means, for the applicable period, as applicable pursuant to this Agreement, (1) the Parent and its Subsidiaries on a consolidated
basis, and (2) the Borrower and its Subsidiaries on a consolidated basis, the sum of (a) Net Income plus (b) Interest Expense
deducted in the calculation of such Net Income plus (c) taxes on income, whether paid, payable or accrued, deducted in the
calculation of such Net Income plus (d) depreciation expense deducted in the calculation of such Net Income plus
(e) amortization expense deducted in the calculation of such Net Income plus (f) to the extent not capitalized, closing
costs and expenses incurred in connection with this Agreement plus (g) stock based compensation expense that is non-cash
deducted in the calculation of such Net Income.

 

“Eligible Account”
means, at any time of determination, an Account owned by Borrower which satisfies the general criteria set forth below and which
is otherwise acceptable to Lender in its Permitted Discretion (provided that, Lender may, in its Permitted Discretion,
change the general criteria for acceptability of Eligible Accounts and shall notify Borrower of such change promptly thereafter).
An Account shall be deemed to meet the current general criteria if:

 

(i)          neither
the Account Debtor nor any of its Affiliates is an Affiliate, creditor or supplier of any Loan Party or an Agent;

 

(ii)         it
does not remain unpaid more than the number of days after the original invoice date set forth in Section 4(a) of Schedule A;

 

(iii)        the
Account Debtor or its Affiliates are not past due the applicable dates referenced in clause (ii) above on more than 40% of all
of the Accounts owing to Borrower by such Account Debtor or its Affiliates;

 

(iv)        all
Accounts owing by the Account Debtor or its Affiliates do not represent more than 25% of all otherwise Eligible Accounts (provided
that Accounts which are deemed to be ineligible solely by reason of this clause (iv) shall be considered Eligible Accounts to the
extent of the amount thereof which does not exceed 25% of all otherwise Eligible Accounts);

 

(v)         no
covenant, representation or warranty contained in this Agreement or any other Loan Document with respect to such Account (including
any of the representations set forth in Section 5.4) has been breached;

 

(vi)        the
Account is not subject to any contra relationship, counterclaim, dispute or set-off, but such account shall only be ineligible
to the extent of such contra relationship, counterclaim, dispute or set-off;

 

(vii)       the
Account Debtor’s chief executive office or principal place of business is located (1) in the United States or (2) outside
of the United States and such Account is insured pursuant to credit insurance or supported by a letter of credit, in each case,
in form, substance and issued by a party satisfactory to Lender (a “Foreign Account”);

 

    	 	 Schedule B-4	 

     

    

 

(viii)      it
is absolutely owing to Borrower and does not arise from a sale on a bill-and-hold, guarantied sale, sale-or-return, sale-on-approval,
consignment, retainage or any other repurchase or return basis or consist of progress billings;

 

(ix)         Lender
shall have verified the Account in a manner satisfactory to Lender;

 

(x)          the
Account Debtor is not the United States or any state or political subdivision (or any department, agency or instrumentality thereof),
unless Borrower has complied with the Assignment of Claims Act of 1940 (31 U.S.C. 3727) or other applicable similar state or local
law in a manner satisfactory to Lender;

 

(xi)         it
is at all times subject to Lender’s duly perfected, first priority security interest and to no other Lien that is not a Permitted
Lien, and the goods giving rise to such Account (A) were not, at the time of sale, subject to any Lien except Permitted Liens and
(B) have been sold by Borrower to the Account Debtor in the ordinary course of Borrower’s business and delivered to and accepted
by the Account Debtor, or the services giving rise to such Account have been performed by Borrower and accepted by the Account
Debtor in the ordinary course of Borrower’s business;

 

(xii)        the
Account is not evidenced by Chattel Paper or an Instrument of any kind and has not been reduced to judgment;

 

(xiii)       the
Account Debtor’s total indebtedness to Borrower does not exceed the amount of any credit limit established by Borrower or
Lender and the Account Debtor is otherwise deemed to be creditworthy by Lender (provided that, Accounts which are
deemed to be ineligible solely by reason of this clause (xiii), shall be considered Eligible Accounts to the extent the amount
of such Accounts does not exceed the lower of such credit limits);

 

(xiv)      there
are no facts or circumstances existing, or which could reasonably be anticipated to occur, which might result in any adverse change
in the Account Debtor’s financial condition or impair or delay the collectability of all or any portion of such Account;

 

(xv)       Lender
has been furnished with all documents and other information pertaining to such Account which Lender has requested, or which Borrower
is obligated to deliver to Lender, pursuant to this Agreement;

 

(xvi)      Borrower
has not made an agreement with the Account Debtor to extend the time of payment thereof beyond the time periods set forth in clause
(ii) above;

 

(xvii)     Borrower
has not posted a surety or other bond in respect of the contract under which such Account arose;

 

(xviii)    the
Account Debtor is not subject to any proceeding seeking liquidation, reorganization or other relief with respect to it or its debts
under any bankruptcy, insolvency or other similar applicable law;

 

(xix)       the
Account does not constitute a Net Agent Account; and

 

(xx)        it
has not been deemed ineligible by Lender in its Permitted Discretion.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974 and all rules, regulations and orders promulgated thereunder.

 

“ERISA Affiliate”
means any trade or business (whether or not incorporated) under common control with a Loan Party Obligor within the meaning of
section 414(b) or (c) of the Code (and sections 414(m) and (o) of the Code for purposes of provisions relating to section 412 of
the Code and section 302 of ERISA).

 

 

    	 	 Schedule B-5	 

     

    

 

“ERISA Event”
means (a) a Reportable Event with respect to a Pension Plan; (b) the withdrawal of any Loan Party or any ERISA Affiliate from
a Pension Plan subject to Section 4063 of ERISA during a plan year in which such entity was a “substantial employer”
as defined in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e)
of ERISA; (c) a complete or partial withdrawal by a Loan Party or any ERISA Affiliate from a Multiemployer Plan or notification
that a Multiemployer Plan is in reorganization; (d) the filing of a notice of intent to terminate or the treatment of a Pension
Plan amendment as a termination under Section 4041 or 4041A of ERISA; (e) the institution by the PBGC of proceedings to terminate
a Pension Plan; (f) any event or condition which constitutes grounds under Section 4042 of ERISA for the termination of, or the
appointment of a trustee to administer, any Pension Plan; (g) the determination that any Pension Plan is considered an at-risk
plan or a plan in endangered or critical status within the meaning of Sections 430, 431 and 432 of the Code or Sections 303, 304
and 305 of ERISA; or (h) the imposition of any liability under Title IV of ERISA, other than for PBGC premiums due but not delinquent
under Section 4007 of ERISA, upon a Loan Party or any ERISA Affiliate.

 

“Eurocurrency
Reserve Requirement” means, for any day as applied to a Loan bearing interest at the LIBOR Rate, the aggregate (without
duplication) of the rates (expressed as a decimal rounded upward to the nearest 1/100th of 1%) as determined by Lender
of reserve requirements in effect on such day (including basic, supplemental, marginal and emergency reserves under any regulations
of the Board of Governors of the Federal Reserve System of the United States or other Governmental Authority, or any successor
thereto, having jurisdiction with respect thereto) prescribed for eurocurrency funding (currently referred to as “Eurocurrency
Liabilities” in Regulation D of such Board) maintained by a member bank of the Federal Reserve System

 

“Event of Default”
has the meaning set forth in Section 7.1.

 

“Excess Availability”
means the amount, as determined by Lender, calculated at any date, equal to the difference of (A) the lesser of (x) the Maximum
Revolving Facility Amount and (y) the Borrowing Base minus (B) the outstanding balance of all Revolving Loans and the Letter
of Credit Balance, provided that, if any of the Loan Limits for Revolving Loans is exceeded as of the date of calculation,
then Excess Availability shall be zero.

 

“Excluded Collateral”
means:

 

(a)          any
rights or interest in any contract, agreement, lease, permit, license, or license agreement to which any Loan Party Obligor is
a party, if under the terms of such contract, agreement, lease, permit, license, or license agreement, or applicable law with respect
thereto, the grant of a security interest or lien therein is prohibited as a matter of law or under the terms of such contract,
agreement, lease, permit, license, or license agreement and such prohibition or restriction has not been waived or the consent
of the other party to such contract, agreement, lease, permit, license, or license agreement has not been obtained (provided
that, (i) the foregoing exclusions of this clause (a) shall in no way be construed (A) to apply to the extent that any described
prohibition or restriction is ineffective under Section 9-406, 9-407, 9-408, or 9-409 of the UCC or other applicable law, or (B)
to apply to the extent that any consent or waiver has been obtained that would permit Lender’s security interest or lien
to attach notwithstanding the prohibition or restriction on the pledge of such contract, agreement, lease, permit, license, or
license agreement and (ii) the foregoing exclusions of this clause (a) shall in no way be construed to limit, impair, or otherwise
affect any of Lender’s continuing security interests in and liens upon any rights or interests of any Loan Party Obligor
in or to (1) monies due or to become due under or in connection with any described contract, agreement, lease, permit, license,
license agreement, or equity interests (including, without limitation, any Accounts) or (2) any proceeds from the sale, license,
lease, or other dispositions of any such contract, agreement, lease, permit, license, license agreement, or equity interests);

 

(b)          any
United States intent-to-use trademark applications to the extent that, and solely during the period in which, the grant of a security
interest therein would impair the validity or enforceability of such intent-to-use trademark applications under applicable federal
law; provided that, upon submission and acceptance by the United States Patent and Trademark Office of an amendment
to allege use pursuant to 15 U.S.C. Section 1060(a) (or any successor provision), such intent-to-use trademark application shall
be considered Collateral;

 

(c)          any
right, title, and interest of Parent in the equity interests of INDCO;

 

    	 	 Schedule B-6	 

     

    

 

(d)          any
assets of INDCO and its Subsidiaries; and

 

(e)          voting
equity interests of any CFC, solely to the extent that such equity interests represent more than 65% of the outstanding voting
equity interests of such CFC.

 

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

 

“Excluded Taxes”
means any of the following Taxes imposed on or with respect to Lender or other Recipient or required to be withheld or deducted
from a payment to Lender or other Recipient: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes,
and branch profits Taxes, in each case, imposed as a result of such Recipient being organized under the laws of, or having its
principal office or, in the case of Lender, its lending office located in, the jurisdiction imposing such Tax (or any political
subdivision thereof) or Taxes imposed as a result of a present connection between such Recipient and the jurisdiction imposing
such Tax (other than connections arising from such Recipient having executed, delivered, become a party to, performed its obligations
under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or
enforced any Loan Document or sold or assigned an interest in any Loan or Loan Document); (b) in the case of a Non-U.S. Recipient
(as defined in Section 9(e)), U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Non-U.S.
Recipient with respect to an applicable interest in a Loan or commitment pursuant to a law in effect on the date on which Non-U.S.
Recipient becomes a party to this Agreement or acquires a participation, except in each case to the extent that, pursuant to Section
9 amounts with respect to such Taxes were payable either to such Non-U.S. Recipient assignor (or Lender granting such participation)
immediately before such assignment or grant of participation; (c) United States federal withholding Taxes that would not have been
imposed but for such Recipient’s failure to comply with Section 9(e) (except where the failure to comply with Section 9(e)
was the result of a change in law, ruling, regulation, treaty, directive, or interpretation thereof by a Governmental Authority
after the date the Recipient became a party to this Agreement or a Participant); and (d) any U.S. federal withholding Taxes imposed
pursuant to FATCA.

 

“FATCA”
means Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is substantively
comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations thereof.

 

“Federal Reserve”
means the Federal Reserve Bank of New York.

 

“First Merchants”
means First Merchants Bank.

 

“First Merchants
Subordination Agreement” means that certain subordination agreement dated as of the Closing Date by and among Parent,
Lender and First Merchants.

 

“Fiscal Year”
means the fiscal year of Borrower which ends on September 30 of each year.

 

“FMC”
has the meaning set forth in Section 5.11.

 

“Funding Losses”
has the meaning set forth in Section 2.6.

 

“GAAP”
means generally accepted accounting principles in the United States, consistently applied.

 

 

    	 	 Schedule B-7	 

     

    

 

“Governmental
Authority” means the government of the United States or any other nation, or of any political subdivision thereof,
whether state or local, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising
executive, legislative, judicial, taxing, regulatory or administrative powers or functions of or pertaining to government (including
any supra-national bodies such as the European Union or the European Central Bank).

 

“Guaranty,”
“Guaranteed” or to “Guarantee”, as applied to any Indebtedness, liability or
other obligation, means (i) a guaranty, directly or indirectly, in any manner, including by way of endorsement (other than endorsements
of negotiable instruments for collection in the ordinary course of business), of any part or all of such Indebtedness, liability
or obligation, and (ii) an agreement, contingent or otherwise, and whether or not constituting a guaranty, assuring, or intended
to assure, the payment or performance (or payment of damages in the event of non-performance) of any part or all of such Indebtedness,
liability or obligation by any means (including, the purchase of securities or obligations, the purchase or sale of property or
services, or the supplying of funds).

 

“Guarantor Payment”
has the meaning set forth in Section 8.10.

 

“INDCO”
means Indco Acquisition Corp., Inc., a Tennessee corporation.

 

“Indebtedness”
means (without duplication), with respect to any Person, (i) all obligations or liabilities, contingent or otherwise, for borrowed
money, (ii) all obligations represented by promissory notes, bonds, debentures or the like, or on which interest charges are customarily
paid, (iii) all liabilities secured by any Lien on property owned or acquired, whether or not such liability shall have been assumed,
(iv) all obligations of such Person under conditional sale or other title retention agreements relating to property or assets purchased
by such Person, (v) all obligations of such Person issued or assumed as the deferred purchase price of property or services (excluding
trade payables which are not ninety days past the invoice date incurred in the ordinary course of business, but including the maximum
potential amount payable under any earn-out or similar obligations), (vi) all Capitalized Leases of such Person, (vii) all obligations
(contingent or otherwise) of such Person as an account party or applicant in respect of letters of credit and/or bankers’
acceptances, or in respect of financial or other hedging obligations, (viii) all equity interests issued by such Person subject
to repurchase or redemption at any time on or prior to the final scheduled Maturity Date, other than voluntary repurchases or redemptions
that are at the sole option of such Person, (ix) all principal outstanding under any synthetic lease, off-balance sheet loan or
similar financing product, and (x) all Guarantees, endorsements (other than for collection in the ordinary course of business)
and other contingent obligations in respect of the obligations of others.

 

“Indemnified
Taxes” means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account
of any obligation of any Loan Party Obligor under any Loan Document and (b) to the extent not otherwise described in clause (a),
Other Taxes.

 

“Intellectual
Property” means the collective reference to all rights, priorities and privileges relating to intellectual property,
whether arising under United States, multinational or foreign laws or otherwise, including copyrights, copyright licenses, patents,
patent licenses, trademarks and trademark licenses, and all rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom.

 

“Interest Expense”
means, for the applicable period, as applicable pursuant to this Agreement, (1) the Parent and its Subsidiaries on a consolidated
basis, and (2) the Borrower and its Subsidiaries on a consolidated basis, total interest expense (including interest attributable
to Capitalized Leases in accordance with GAAP) and fees with respect to outstanding Indebtedness.

 

“Interest Period”
means, with respect to each LIBOR Rate Loan, a period commencing on the date of the making of such LIBOR Rate Loan (or the continuation
of a LIBOR Rate Loan or the conversion of a Base Rate Loan to a LIBOR Rate Loan), which shall be a Business Day, and ending 1,
2 or 3 months thereafter, provided, however, that (a) if any Interest Period would end on a day that
is not a Business Day, such Interest Period shall be extended (subject to clauses (c)-(e) below) to the next succeeding Business
Day, (b) interest shall accrue at the applicable rate based upon the LIBOR Rate from and including the first day of each Interest
Period to, but excluding, the day on which any Interest Period expires, (c) any Interest Period that would end on a day that is
not a Business Day shall be extended to the next succeeding Business Day unless such Business Day falls in another calendar month,
in which case such Interest Period shall end on the next preceding Business Day, (d) with respect to an Interest Period that begins
on the last Business Day of a calendar month (or on a day for which there is no numerically corresponding day in the calendar month
at the end of such Interest Period), the Interest Period shall end on the last Business Day of the calendar month that is 1, 2
or 3 months after the date on which the Interest Period began, as applicable, and (e) Borrower may not elect an Interest Period
which will end after the Maturity Date.

 

    	 	 Schedule B-8	 

     

    

 

“Investment Property”
means the collective reference to (a) all “investment property” as such term is defined in Section 9-102 of the UCC,
(b) all “financial assets” as such term is defined in Section 8-102(a)(9) of the UCC, and (c) whether or not constituting
“investment property” as so defined, all Pledged Equity.

 

“Issuers”
means the collective reference to each issuer of Investment Property.

 

“Lender”
has the meaning set forth in the preamble to this Agreement.

 

“Letters of Credit”
has the meaning set forth in Section 1.1(a).

 

“Letter of Credit
Balance” means the sum of (i) the aggregate undrawn face amount of all outstanding Letters of Credit and (ii) all
interest, fees and costs due or, in Lender’s estimation, likely to become due in connection therewith.

 

“Letter of Credit
Limit” means the amount set forth in Section 1(e) of Schedule A.

 

“LIBOR Deadline”
has the meaning specified therefor in Section 2.6.

 

“LIBOR Notice”
means a written notice in the form of Exhibit B.

 

“LIBOR Option”
has the meaning specified therefor in Section 2.6.

 

“LIBOR Rate”
means (a) the rate per annum as reported on Reuters Screen LIBOR01 page (or any successor page) two Business Days prior to the
commencement of the requested Interest Period, for a term, and in an amount, comparable to the Interest Period and the amount of
the LIBOR Rate Loan requested (whether as an initial LIBOR Rate Loan or as a continuation of a LIBOR Rate Loan or as a conversion
of a Base Rate Loan to a LIBOR Rate Loan) by Borrower in accordance with this Agreement (and, if any such rate is below .75%, the
LIBOR Rate shall be deemed to be .75%), which determination shall be made by Lender and shall be conclusive in the absence of manifest
error, divided by (b) 1.00 minus the Eurocurrency Reserve Requirement then in effect.

 

“LIBOR Rate Loan”
means, as of any date of determination, the portion of the Revolving Loans outstanding as of such date that bears interest at a
rate estimated by reference to the LIBOR Rate.

 

“LIBOR Rate Margin”
means 2.50%.

 

“Lien”
means any mortgage, deed of trust, pledge, hypothecation, assignment, charge, deposit arrangement, encumbrance, easement, lien
(statutory or other), security interest, or other security arrangement and any other preference, priority, or preferential arrangement
in the nature of a security interest of any kind or nature whatsoever, including any conditional sale contract or other title retention
agreement, the interest of a lessor under a Capital Lease and any synthetic or other financing lease having substantially the same
economic effect as any of the foregoing.

 

“Loan Account”
has the meaning set forth in Section 2.4.

 

“Loan Documents”
means, collectively, this Agreement and all notes, guaranties, security agreements, mortgages, certificates, landlord’s agreements,
First Merchants Subordination Agreement, Lock Box and Blocked Account agreements and all other agreements, documents and instruments
now or hereafter executed or delivered by Borrower, any Loan Party, or any Other Obligor in connection with, or to evidence the
transactions contemplated by, this Agreement.

 

    	 	 Schedule B-9	 

     

    

 

“Loan Guaranty”
means Section 8 of this Agreement.

 

“Loan Limits”
means, collectively, the Loan Limits for Revolving Loans and Letters of Credit set forth in Section 1 of Schedule A and all other
limits on the amount of Loans and Letters of Credit set forth in this Agreement.

 

“Loan Party”
means, individually, Parent, Borrower, or any Subsidiary; and “Loan Parties” means, collectively, Parent, Borrower
and all Subsidiaries; provided however, excluding INDCO and its Subsidiaries.

 

“Loan Party Obligor”
means, individually, Borrower or any Obligor that is a Loan Party and party to this Agreement; and “Loan Party Obligors”
means, collectively, Borrower and each Obligor that is a Loan Party and party to this Agreement.

 

“Loans”
means, collectively, the Revolving Loans and any term loan.

 

“Lock Box”
has the meaning set forth in Section 4.1.

 

“Material Adverse
Effect” means any event, act, omission, condition or circumstance which, individually or in the aggregate, has or
could reasonably be expected to have a material adverse effect on (a) the business, operations, properties, assets or condition,
financial or otherwise, of the Loan Party Obligors, taken as a whole, (b) the ability of the Loan Party Obligors, taken as a whole,
to perform any of their obligations under any of the Loan Documents, or (c) the validity or enforceability of, or Lender’s
rights and remedies under, any of the Loan Documents.

 

“Material Contract”
means has the meaning set forth in Section 5.18.

 

“Maturity Date”
means the date set forth in Section 6 of Schedule A, as such date may be accelerated in accordance with the terms of this Agreement.

 

“Maximum Lawful
Rate” has the meaning set forth in Section 2.5.

 

“Maximum Liability”
has the meaning set forth in Section 8.9.

 

“Maximum Revolving
Facility Amount” means the amount set forth in Section 1(a) of Schedule A.

 

“Multiemployer
Plan” means any employee benefit plan of the type described in Section 4001(a)(3) of ERISA, to which a Loan Party
or any ERISA Affiliate makes or is obligated to make contributions, or during the preceding five plan years, has made or been obligated
to make contributions.

 

“Net Agent Account”
means an account owed by a “agent” being a third-party domestic or foreign, non-vessel operating common carrier, a
freight forwarder, customs broker, or other service provider with whom a Borrower contracts to perform certain services for such
Borrower related to the delivery of freight.

 

“Net Income”
means, for the applicable period, as applicable pursuant to this Agreement, (1) the Parent and its Subsidiaries on a consolidated
basis, and (2) the Borrower and its Subsidiaries on a consolidated basis, the net income (or loss) of such Persons, for such period,
excluding any gains or non-cash losses from dispositions, any extraordinary gains or extraordinary non-cash losses and any gains
or non-cash losses from discontinued operations, in each case of such Persons, for such period.

 

“Non-Paying
Guarantor” has the meaning set forth in Section 8.10.

 

    	 	 Schedule B-10	 

     

    

 

“Non-U.S. Recipient”
has the meaning set forth in Section 9(e)(ii).

 

“Notice of Borrowing”
has the meaning set forth in Section 1.4.

 

“Oaxaca”
means Oaxaca Group LLC, a Delaware limited liability company.

 

“Oaxaca SPA”
means that certain Securities Purchase Agreement dated October 6, 2013 between Parent, as issuer, and Oaxaca as the “Investor”.

 

“Oaxaca Warrant”
means the “Warrant” as defined in the Oaxaca SPA, in effect as of the Closing Date in favor of Oaxaca to purchase 250,000
shares of common stock of the Parent on the terms and conditions set forth therein.

 

“Obligations”
means all present and future Loans, advances, debts, liabilities, fees, expenses, obligations, guaranties, covenants, duties and
indebtedness at any time owing by Borrower or any Loan Party Obligor to Lender, whether evidenced by this Agreement, any other
Loan Document or otherwise, whether arising from extensions of credit, opening of Letters of Credit, credit cards, debit cards,
cash management or related services, treasury management, guarantees, indemnities or otherwise, whether direct or indirect, whether
absolute or contingent, whether due or to become due, and whether arising before or after the commencement of a proceeding under
the Bankruptcy Code or any similar statute, provided that Obligations of any Loan Party Obligor shall not include
(i) any Excluded Swap Obligations of such Loan Party Obligor, and (ii) any of the foregoing obligations which are acquired by assignment
or any participation by Lender in any Loan Party Obligor’s indebtedness to others and unrelated to the Obligations under
the Loan Documents.

 

“Obligor”
means any guarantor, endorser, acceptor, surety or other Person liable on, or with respect to, any of the Obligations or who is
the owner of any property which is security for any of the Obligations, other than Borrower.

 

“OFAC”
means the Office of Foreign Assets Control of the U.S. Department of the Treasury.

 

“Organic Documents”
means, with respect to any Person, the certificate of incorporation, articles of incorporation, certificate of formation, certificate
of limited partnership, by-laws, operating agreement, limited liability company agreement, limited partnership agreement or other
similar governance document of such Person.

 

“Other Obligor”
means any Obligor other than any Loan Party Obligor.

 

“Other Taxes”
means all present or future stamp, court or documentary, property, excise, intangible, recording, filing or similar Taxes that
arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt
or perfection of a security interest under, or otherwise with respect to, any Loan Document.

 

“Parent”
has the meaning set forth in the preamble to this Agreement.

 

“Participant”
has the meaning set forth in Section 10.10.

 

“Patriot Act”
has the meaning set forth in Section 5.24

 

“PBGC”
means the Pension Benefit Guaranty Corporation.

 

“Pension Act”
means the Pension Protection Act of 2006.

 

“Pension Funding
Rules” means the rules of the Code and ERISA regarding minimum required contributions (including any installment
payment thereof) to Pension Plans and Multiemployer Plans and set forth in, with respect to plan years ending prior to the effective
date of the Pension Act, Section 412 of the Code and Section 302 of ERISA, each as in effect prior to the Pension Act and, thereafter,
Section 412, 430,431, 432 and 436 of the Code and Sections 302, 303, 304 and 305 of ERISA, and any sections of the Code or ERISA
related thereto that are enacted after the date of this Agreement.

 

    	 	 Schedule B-11	 

     

    

 

“Pension Plan”
means any employee pension benefit plan (including a Multiple Employer Plan or a Multiemployer Plan) that is maintained or is contributed
to by a Loan Party Obligor and any ERISA Affiliate and is either covered by Title IV of ERISA or is subject to the Pension Funding
Rules.

 

“Permitted Acquisition”
means any acquisition (whether by purchase, merger, consolidation or otherwise) or series of related acquisitions by Borrower of
all or substantially all the assets of, or all the equity interests in, a Person or division or line of business of a Person if,
at the time of and immediately after giving effect thereto, (a) no Default or Event of Default then exists or would arise from
the consummation of such acquisition, (b) the business acquired in connection with such acquisition is (i) located in the United
States or Canada, (ii) organized under the laws of any state of the United States or the District of Columbia or any province of
Canada, and (iii) not engaged, directly or indirectly, in any line of business other than the businesses in which Borrower is engaged
on the date hereof and any business activities that are substantially similar, related, or incidental thereto; (c) the aggregate
consideration for all such acquisitions occurring during any Fiscal Year shall not exceed $2,500,000 in the aggregate; (d) any
Person so acquired or any new Subsidiary formed in connection with such acquisition shall promptly become a Loan Party Obligor
pursuant to documentation and other requirements reasonably acceptable to Lender, and Lender shall have a first priority security
interest in all of the assets of such Person, and the Lender shall have received such reasonable documentation in connection therewith,
including, opinions, certificates and Organic Documents with respect to such Person; (e) such acquisition shall have been approved
by the board of directors of the Person (or similar governing body if such Person is not a corporation) which is the subject of
such acquisition and such Person shall not have announced that it will oppose such acquisition or shall not have commenced any
action which alleges that such acquisition shall violate applicable law; (f) the legal structure of such acquisition shall be acceptable
to Lender in its Permitted Discretion, (g) after giving effect to the acquisition, if the acquisition is an acquisition of the
equity interests, a Loan Party shall acquire and own, directly or indirectly, a majority of the equity interests in the Person
being acquired and shall control a majority of any voting interests or shall otherwise control the governance of the Person being
acquired, (h) the Administrative Borrower shall have furnished the Lender with thirty (30) days’ prior written notice of
such intended acquisition and shall have furnished the Lender with a current draft of the acquisition documents (and final copies
thereof as and when executed), a summary of any due diligence undertaken by the Loan Party Obligors in connection with such acquisition,
appropriate financial statements of the Person which is the subject of such acquisition, pro forma projected financial statements
for the twelve (12) month period following such acquisition after giving effect to such Acquisition (including balance sheets,
cash flows and income statements by month for the acquired Person, individually, and on a consolidated basis with all Loan Party
Obligors), and such other information as the Lender may reasonably require, all of which shall be reasonably satisfactory to the
Agent; (i) all transactions in connection therewith shall be consummated, in all material respects, in accordance with all
applicable laws; and (j) the Restricted Payment Conditions are satisfied.

 

“Permitted Discretion”
means a determination made in the exercise of reasonable business judgment (from the perspective of an asset based lender).

 

“Permitted Dispositions”
means (a) sales or other dispositions of Equipment that is substantially worn, damaged, or obsolete in the ordinary course of business,
(b) so long as no Default or Event of Default shall have occurred and be continuing, other sales or dispositions of Equipment not
to exceed $150,000 in the aggregate during any 12 consecutive-month period, (c) sales of Inventory to buyers in the ordinary course
of business, and (d) the use or transfer of money or cash equivalents in a manner that is not prohibited by the terms of the Agreement
or the other Loan Documents.

 

“Permitted Dividends”
means (i) dividends payable solely in capital stock or other equity interests of such Loan Party and dividends and distributions
to Borrower; (ii) dividends or distributions to Parent to permit Parent to pay federal, state and local income taxes then due and
owing by Parent; and (iii) in addition to the dividends and distributions permitted by clause (ii) above, dividends or distributions
by Borrower to Parent so long as the Dividend Payment Conditions are satisfied.

 

    	 	 Schedule B-12	 

     

    

 

“Permitted Indebtedness”
means: (a) the Obligations; (b) the Indebtedness existing on the date hereof described in Section 6 of the Disclosure Schedule,
in each case along with extensions, refinancings, modifications, amendments and restatements thereof, provided that (i)
the principal amount thereof is not increased, (ii) if such Indebtedness is subordinated to any or all of the Obligations, the
applicable subordination terms shall not be modified without the prior written consent of Lender, and (iii) the terms thereof are
not modified to impose more burdensome terms upon any Loan Party; (c) Capitalized Leases and purchase money Indebtedness secured
by Permitted Liens in an aggregate amount not exceeding $100,000 at any time outstanding; (d) Indebtedness incurred as a result
of endorsing negotiable instruments received in the ordinary course of business; (e) guaranty obligations permitted hereunder;
(f) obligations in respect of performance bonds or sureties incurred in the ordinary course of business; and (g) Indebtedness between
and among Loan Party Obligors not to exceed $500,000 in the aggregate any one time.

 

“Permitted Liens”
means (a) purchase money security interests in specific items of Equipment securing Permitted Indebtedness described under clause
(c) of the definition of Permitted Indebtedness; (b) Liens for taxes, fees, assessments, or other governmental charges or levies,
either not delinquent or being contested in good faith by appropriate proceedings (which proceedings have the effect of preventing
the enforcement of such Lien) for which adequate reserves in accordance with GAAP are being maintained, provided the same
have no priority over any of Lender’s security interests; (c) Liens of materialmen, mechanics, carriers, or other similar
Liens arising in the ordinary course of business and securing obligations which are not delinquent or are being contested in good
faith by appropriate proceedings (which proceedings have the effect of preventing the enforcement of such Lien) for which adequate
reserves in accordance with GAAP are being maintained; (d) Liens which constitute banker’s Liens, rights of set-off, or similar
rights as to deposit accounts or other funds maintained with a bank or other financial institution (but only to the extent such
banker’s liens, rights of set-off or other rights are in respect of customary service charges relative to such deposit accounts
and other funds, and not in respect of any loans or other extensions of credit by such bank or other financial institution to any
Loan Party); (e) cash deposits or pledges to secure the payment of worker’s compensation, unemployment insurance, or other
social security benefits or obligations, public or statutory obligations, surety or appeal bonds, bid or performance bonds, or
other obligations of a like nature incurred in the ordinary course of business; and (f) Liens incurred in connection with the extension,
renewal or refinancing of the Indebtedness secured by the any Lien listed above.

 

“Person”
means any individual, sole proprietorship, partnership, joint venture, limited liability company, trust, unincorporated organization,
association, corporation, Governmental Authority, or any other entity.

 

“Plan”
means any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Plan), maintained for employees
of any Loan Party or any such plan to which any Loan Party Obligor (or with respect to any plan subject to Section 412 of the Code
or Section 302 or Title IV of ERISA, any ERISA Affiliate) is required to contribute on behalf of any of its employees.

 

“Pledged Equity”
means the equity interests (other than those of Parent) listed on Sections 1(f) and 1(g) of the Disclosure Schedule, together with
any other equity interests, certificates, options, or rights or instruments of any nature whatsoever in respect of the equity interests
of any Person that may be issued or granted to, or held by, any Loan Party Obligor while this Agreement is in effect, and including
to the extent attributable to, or otherwise related to, such pledged equity interests, all of such Loan Party Obligor’s (i)
interests in the profits and losses of each Issuer, (ii) rights and interests to receive distributions of each Issuer’s assets
and properties, and (iii) rights and interests, if any, to participate in the management of each Issuer related to such pledged
equity interests, provided, however that no more than 65% of the voting equity interests of any CFC
shall be deemed to be Pledged Equity.

 

“Protective Advances”
has the meaning set forth in Section 1.3.

 

“Recipient”
means Lender, Participant, or any other recipient of any payment to be made by or on account of any Obligation of any Loan Party
Obligor under this Agreement or any other Loan Document, as applicable.

 

“Register”
has the meaning set forth in Section 10.9(a).

 

    	 	 Schedule B-13	 

     

    

 

“Released Parties”
has the meaning set forth in Section 6.1.

 

“Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than events for which the 30 day notice period has been waived.

 

“Reserves”
has the meaning set forth in Section 1.2.

 

“Restricted Accounts”
means Deposit Accounts (a) established and used (and at all times will be used) solely for the purpose of paying current payroll
obligations of Loan Party Obligors (and which do not (and will not at any time) contain any deposits other than those necessary
to fund current payroll), in each case in the ordinary course of business, or (b) maintained (and at all times will be maintained)
solely in connection with an employee benefit plan, but solely to the extent that all funds on deposit therein are solely held
for the benefit of, and owned by, employees (and will continue to be so held and owned) pursuant to such plan.

 

“Restricted Payment
Conditions” means, with respect to any applicable transaction, (a) no Default or Event of Default shall exist immediately
before and after giving effect to such transaction, (b) the Loan Party Obligors shall be in compliance with the financial covenants
(calculated on a pro forma basis after giving to such transaction) set forth in Section 5.28, and (c) Excess Availability for each
of the thirty (30) days immediately preceding such transaction and for each of the thirty days immediately following such transaction
(calculated on a pro forma basis after giving effect to such transaction), is not less than $1,000,000.

 

“Revolving Loans”
has the meaning set forth in Section 1.1(a).

 

“Sanctioned Entity”
means (a) a country or a government of a country, (b) an agency of the government of a country, (c) an organization directly or
indirectly controlled by a country or its government, (d) a Person resident in or determined to be resident in a country, in each
case, that is subject to a country sanctions program administered and enforced by OFAC.

 

“Sanctioned Person”
means a person named on the list of Specially Designated Nationals maintained by OFAC.

 

“Securities Act”
means the Securities of Act of 1933, as amended.

 

“Stated Rate”
has the meaning set forth in Section 2.5.

 

“Subsidiary”
means any corporation or other entity of which a Person owns, directly or indirectly, through one or more intermediaries, more
than 50% of the capital stock or other equity interest at the time of determination. Unless the context indicates otherwise, references
to a Subsidiary shall be deemed to refer to a Subsidiary of Borrower.

 

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

 

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

 

“Termination
Date” means the date on which all of the Obligations have been paid in full in cash and all of Lender’s lending
commitments under this Agreement and under each of the other Loan Documents have been terminated.

 

“Total Liabilities”
means, as of any date of determination, liabilities of the Loan Party Obligors on a consolidated basis minus Indebtedness
of the Loan Party Obligors subordinated to the Obligations on terms and conditions satisfactory to Lender.

 

    	 	 Schedule B-14	 

     

    

 

“UCC”
means, at any given time, the Uniform Commercial Code as adopted and in effect at such time in the State of New York or such other
applicable jurisdiction.

 

“United States”
means United States of America.

 

Unless otherwise specified
herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder (including determinations
made pursuant to the exhibits hereto) shall be made, and all financial statements required to be delivered hereunder shall be prepared
on a consolidated basis in accordance with GAAP consistently applied. If at any time any change in GAAP would affect the computation
of any financial ratio or financial requirement set forth in any Loan Document, and either Borrower or Lender shall so request,
Lender and Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in
light of such change in GAAP; provided that, until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change therein and (ii) Borrower shall provide to Lender financial statements and
other documents required under this Agreement and the other Loan Documents which include a reconciliation between calculations
of such ratio or requirement made before and after giving effect to such change in GAAP. Notwithstanding any other provision contained
herein, all terms of an accounting or financial nature used herein shall be construed, and all computations of amounts and ratios
referred to herein shall be made, without giving effect to any election under Statement of Financial Accounting Standards 159 (Codification
of Accounting Standards 825-10) to value any Indebtedness or other liabilities of any Loan Party at “fair value,” as
defined therein.

 

Notwithstanding anything
to the contrary contained in the paragraph above or the definitions of Capital Expenditures or Capitalized Leases, in the event
of a change in GAAP after the Closing Date requiring all leases to be capitalized, only those leases (assuming for purposes of
this paragraph that they were in existence on the Closing Date) that would constitute Capitalized Leases on the Closing Date shall
be considered Capital Leases (and all other such leases shall constitute operating leases) and all calculations and deliverables
under this Agreement or the other Loan Documents shall be made in accordance therewith (other than the financial statements delivered
pursuant to this Agreement, provided that all such financial statements delivered to Lender in accordance with the
terms of this Agreement after the date of such change in GAAP shall contain a schedule showing the adjustments necessary to reconcile
such financial statements with GAAP as in effect immediately prior to such change).

 

References in this Agreement
to “Articles,” “Sections,” “Annexes,” “Exhibits” or “Schedules” shall
be to Articles. Sections, Annexes, Exhibits or Schedules of or to this Agreement unless otherwise specifically provided. Any term
defined herein may be used in the singular or plural. “Include,” “includes” and “including”
shall be deemed to be followed by “without limitation,” “or” shall be construed to mean “and/or.”
Except as otherwise specified or limited herein, references to any Person include the successors and assigns of such Person. References
“from” or “through” any date mean, unless otherwise specified, “from and including” or “through
and including,” respectively. Unless otherwise specified herein, the settlement of all payments and fundings hereunder between
or among the parties hereto shall be made in lawful money of the United States and in immediately available funds. Time is of the
essence for each performance obligation of the Loan Party Obligors under this Agreement and each Loan Document. All amounts used
for purposes of financial calculations required to be made herein shall be without duplication. References to any statute or act
shall include all related current regulations and all amendments and any successor statutes, acts and regulations. References to
any agreement, instrument or document (i) shall include all schedules, exhibits, annexes and other attachments thereto and (ii)
shall be construed as referring to such agreement, instrument or other document as from time to time amended, amended and restated,
restated, supplemented or otherwise modified (subject to any restrictions on such amendments, restatements, supplements or modifications
set forth herein or in any other Loan Document). The words “asset” and “property” shall be construed to
have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

    	 	 Schedule B-15	 

     

    

 

Schedule C

 

(i) Within 60 days of the
Closing Date, close all Deposit Accounts other than with Lender and provide Lender satisfactory evidence thereof and establish
all cash management with Lender; [OTHER POST-CLOSING ITEMS TO BE ADDED, TO THE EXTENT AGREED TO BY LENDER].

 

    	 	 Schedule C-1	 

     

    

 

Schedule D

 

Fees

 

(a)          Closing
Fee. A closing fee equal to $50,000 (the “Closing Fee”), which Closing Fee shall be deemed to be
fully earned and payable as of the Closing Date

 

(b)          Collateral
Monitoring Fee. A monthly collateral monitoring fee of $1,000 per month until the Termination Date (the “Collateral
Monitoring Fee”), which shall be due and payable monthly in arrears on the first day of each month, commencing on
November 1, 2017.

 

(c)          Unused
Line Fee. An unused line fee (the “Unused Line Fee”) equal to 0.25% per annum of the amount by which
the Maximum Revolving Facility Amount, calculated without giving effect to any Reserves or Availability Block, if applied to the
Maximum Revolving Facility Amount, exceeds the average daily outstanding principal balance of the Revolving Loans and the Letter
of Credit Balance during the immediately preceding month (or part thereof), which each such fee shall be deemed to be fully earned
and payable, in arrears, on the first day of each month commencing November 1, 2017, until the Termination Date.

 

(d)          Letter
of Credit Fees. A fee equal to the LIBOR Rate Margin times the average daily face amount of each Letter of Credit (the “Letter
of Credit Fees”), which (i) each such fee shall be deemed to be fully earned and payable, in arrears, on the first
day of each month commencing November 1, 2017, until the Termination Date, (ii) applicable fronting fees, and (iii) all customary
charges associated with the issuance, amendment, negotiation, payment, processing, transfer and administration of Letters of Credit,
which charges shall be paid as and when incurred. Upon the occurrence of an Event of Default, the fee payable under this clause
(i) shall be increased by 3.0% per annum.

 

(e)          Early
Termination Fee. In the event of any early termination of the Loan facilities hereunder pursuant to Section 1.8 or upon the
acceleration of the Obligations pursuant to the provisions of Section 7.2, in addition to the payment of the subject principal
amount and the other amounts required pursuant to Section 1.8 or Section 7.2, Borrower shall pay to Lender an early termination
fee (the “Early Termination Fee”) of (i) 2.0% of the Maximum Revolving Facility Amount, if such termination
occurs on or before the first anniversary of the Closing Date, (ii) 1.0% of the Maximum Revolving Facility Amount, if such termination
occurs after the first anniversary of the Closing Date, but on or before the second anniversary of the Closing Date, or (iii) 0.0%
of the Maximum Revolving Facility Amount, if such termination occurs after the second anniversary of the Closing Date. For the
avoidance of doubt, for purposes of calculating the Early Termination Fee, the amount of the Maximum Revolving Facility Amount
shall be determined without giving effect to any Availability Block, Reserves, or any other reduction in the Maximum Revolving
Facility Amount.

 

    	 	 Schedule D-1	 

     

    

 

Schedule E

 

Provide Lender with each
of the documents set forth below at the following times in form satisfactory to Lender:

 

	Twice per month, on the 5th Business Day after the 15th of each month and last day of each month (as of the 15th day of such month and the prior month end, respectively)	 	
        (a) a completed and signed Borrowing Base certificate
        in the form provided to Borrower by Lender prior to the date hereof,

         

        (b) a roll-forward with supporting details
        with respect to Borrower’s Accounts (delivered electronically in an acceptable format).

         

        (c) notice of all claims, offsets, or disputes
        asserted by Account Debtors with respect to Borrower’s Accounts,

         

        (d) a detailed aging, by total, of Borrower’s
        Accounts, together with a reconciliation and supporting documentation for any reconciling items noted,

	 	 	 
	Monthly, no later than 5th Business Day after the 15th day of each month (as of such 15th day)	 	
        (e) a summary aging, by vendor, of each Loan
        Party Obligor’s accounts payable and any book overdraft and an aging, by vendor, of any held checks (delivered electronically
        in an acceptable format),

         

        (f) a monthly Account roll-forward with respect
        to Borrower’s Accounts, in a format reasonably acceptable to Lender, tied to the beginning and ending Account balances of
        Borrower’s general ledger (delivered electronically in an acceptable format),

	 	 	 
	Quarterly, no later than the 5th Business Day after each quarter end (as of such quarter end)	 	(g) a report regarding each Loan Party Obligor’s accrued, but unpaid, ad valorem taxes,

 

    	 	 Schedule E-1	 

     

    

 

	Annually, on the 15th day of each January (as of the prior Fiscal Year end) 	 	
        (h) a detailed list of each Loan Party Obligor’s
        customers, with address and contact information,

         

        (i) a detailed list of each Loan Party Obligor’s
        vendors, with address and contact information,

         

        (j) an updated Disclosure Schedule, true and
        correct in all material respects as of the date of delivery, accompanied by a certificate executed by an officer of Borrower in
        a form reasonably acceptable to Lender (it being understood and agreed that no such update shall serve to cure any existing Event
        of Default, including any Event of Default resulting from any failure to provide any such disclosure to Lender on an earlier date
        or any breach of any earlier made representation and/or warranty), and

 

    	 	 Schedule E-2	 

     

    

 

Schedule F

 

Financial Covenant

 

Minimum Debt Service
Coverage Ratio. Loan Party Obligors shall not permit the Debt Service Coverage Ratio to be less than 1.1:1.0 for each Covenant
Compliance Period, commencing with the fiscal quarter ending December 31, 2017, calculated on an actual trailing four (4) quarter
basis, provided, however, for the first, second and third Covenant Compliance Periods after the Closing
Date (i.e. December 31, 2017, March 31, 2018 and June 30, 2018), the Debt Service Coverage Ratio shall be calculated on a rolling
three (3) month, six (6) month and nine (9) month basis.

 

Minimum Debt Service Coverage Ratio (Borrower
Group). Borrower shall not permit the Debt Service Coverage Ratio (Borrower Group) to be less than 1.1:1.0 for each Covenant
Compliance Period, commencing with the fiscal quarter ending December 31, 2017, calculated on an actual trailing four (4) quarter
basis, provided, however, for the first, second and third Covenant Compliance Periods after the Closing
Date (i.e. December 31, 2017, March 31, 2018 and June 30, 2018), the Debt Service Coverage Ratio shall be calculated on a rolling
three (3) month, six (6) month and nine (9) month basis,

 

    	 	 Schedule F-1	 

     

    

 

Schedule G

 

Additional Conditions Precedent

 

The closing and initial funding of the initial Revolving Loans will
be subject to the following additional conditions precedent:

 

(i)          Satisfactory
evidence that the Borrowers are paying account payables within terms.

 

(ii)         The Lender
shall have received an updated Borrowing Base certificate.

 

(iii)        Excess Availability
shall be no less than $750,000 at the time of closing. For purposes of calculating the foregoing, such amount may include any cash
maintained on deposit at the Lender (other than the Seller Debt Payment Reserve, defined below); provided, however, for purposes
of calculating Excess Availability as of the Closing Date only, such amount may include any cash maintained on deposit with the
Lender provided that such cash is free and clear of all Liens except a Lien solely in favor of the Lender.

 

(iv)        All documents
and instruments required to perfect the Lender’s security interest in the Collateral shall have been executed, delivered
and in form for filing, and the Lender’s liens on the Collateral shall have been perfected, as contemplated by the security
documents for the Senior Secured Credit Facility; provided that to the extent a Lien on any Collateral (other than assets with
respect to which a Lien may be perfected solely by the filing of a financing statement under the Uniform Commercial Code and the
delivery of stock certificates) is not or cannot be perfected on the Closing Date after Lender’s use of commercially reasonable
efforts to do so or without undue burden or expense, the perfection of such Lien shall not constitute a condition precedent to
the initial availability of the Senior Secured Credit Facility on the Closing Date, but shall be required to be perfected within
90 days after the Closing Date (subject to extensions by the Lender in its sole reasonable discretion).

 

(v)         The Lender
shall have received information relating to the insurance coverage. The insurance certificates and endorsements shall (a) name
the Lender, on behalf of the secured parties, as lender loss payee and/or additional insured, its successors and/or assigns, as
its interest may appear and (b) otherwise meet the requirements set forth in this Agreement.

 

(vi)         The Lender, Parent and First Merchant shall have executed the
First Merchant Subordination Agreement.

 

(vii)       The remaining “seller
indebtedness” in the approximate amount of $500,000 shall have been paid prior to the Closing Date (the “Seller Debt
Payment”) or if not paid, either at the Lender’s election (a) the establishment of an availability block or (b) a cash
account in the amount of $500,000 shall be established at the Lender on the Closing Date (the “Seller Debt Payment Reserve),
and the holder of the seller indebtedness shall have entered into a subordination agreement for the existing seller debt satisfactory
to the Lender.

 

(viii)      The Lender shall have
entered into such Blocked Accounts with such institutions as the Lender may determine.

 

    	 	 Schedule G-1

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