Document:

Exhibit 10.13

 

 

MASTER LEASE AGREEMENT

 

THIS MASTER LEASE
AGREEMENT (this "Lease") is made as of February 27, 2020, between UTICA LEASECO, LLC, its successors and assigns
("Lessor"), 5J TRUCKING, a Texas limited liability company, d/b/a 5J and 5J Trucking, LLC (“5J Trucking”),
its successors and permitted assigns, and 5J OILFIELD SERVICES, LLC, a Texas limited liability company (“5J Oil”),
its successors and permitted assigns (hereafter referred to both individually, and collectively (if more than one), as "Lessee").
Each duty, obligation, representation, warranty, covenant, and agreement of Lessee under this Lease, or any document, exhibit,
schedule, rider, or other instrument incorporated herein by reference, is made jointly and severally by each party comprising Lessee,
and their respective permitted successors and assigns.

 

Lessee desires to
lease from Lessor the equipment and other property (collectively, the "Equipment") described in each Equipment
Schedule executed pursuant to this Lease (each, a "Schedule"), with each Schedule incorporating by reference the
terms and conditions of this Lease. The term “Lease” shall also incorporate by reference all Schedules and any
Riders entered into with respect to such Schedules. Certain definitions and construction of certain of the terms used in this Lease
are provided in Section 19 hereof.

 

For good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties to this Lease agree as follows:

 

1.     
AGREEMENT TO LEASE; TERM. This Lease is effective as of the date specified above. By entering into a Schedule, Lessor leases
the Equipment described therein to Lessee, and Lessee leases such Equipment from Lessor, in each case, subject to the terms and
conditions in this Lease and such Schedule and all other Schedules, Riders, Exhibits and all of the other documents and agreements
executed in connection herewith (collectively, the “Lease Documents”). Each Schedule, incorporating the terms
and conditions of this Lease, will, at Lessor’s option, constitute a separate instrument of lease. The term of lease with
respect to each item of Equipment leased under a Schedule shall commence on the date of execution of such Schedule and continue
for the term provided in that Schedule.

 

2.       RENT.
Lessee shall pay Lessor (a) the rental installments (“Basic Rent”) as and when specified in each Schedule, without
demand, and (b) all of the other amounts payable in accordance with this Lease, such Schedule and/or any of the other Lease Documents
(“Other Payments”, and together with the Basic Rent, collectively, the "Rent"). Upon Lessee’s
execution thereof, the related Schedule shall constitute a non-cancelable net lease, and Lessee's obligation to pay Rent, and otherwise
to perform its obligations under or with respect to such Schedule and all of the other Lease Documents, are and shall be absolute
and unconditional and shall not be affected by any circumstances whatsoever, including any right of setoff, counterclaim, recoupment,
deduction, defense or other right which Lessee may have against Lessor, the manufacturer or vendor of the Equipment (the "Suppliers"),
or anyone else, for any reason whatsoever (each, an “Abatement”). Lessee agrees that all Rent shall be paid
in accordance with Lessor’s or Assignee’s written direction. Time is of the essence. If any Rent is not received by
Lessor within five (5) business days of the due date (or the next business day if the 5th day of such grace period is
a Saturday, Sunday, or legal holiday for commercial banks under the laws of the state of the Lessor’s notice address), Lessee
shall pay a late charge equal to ten (10%) percent of the amount (the “Late Fee”). In addition, in the event
that any payment or any other amount due hereunder is not processed or is returned on the basis of insufficient funds, upon demand,
Lessee shall pay Lessor a charge equal to five (5%) percent of the amount of such payment. Basic Rent shall be adjusted periodically
based on fluctuations of the Comerica Prime Rate (defined below), as set forth in this paragraph.  Commencing on July 1, 2020
and on each July 1 and January 1 thereafter (each a “Determinate Date”), Lessor shall determine the current
prime rate publicly announced by Comerica Bank (the “Comerica Prime Rate”).  If on any such Determination
Date, the Comerica Prime Rate has increased .25% in excess of 4.75% (“Surcharge Base Rate”), Lessor will increase
the Basic Rent by $3,310.65 per month for each .25% increase in the Surcharge Base Rate (the “Surcharge Amount”). 
At each Determination Date following the initial application of the Surcharge Amount, Lessor shall thereafter adjust the Basic
Rent in the amount of the Surcharge Amount for each .25% fluctuation in the Surcharge Base Rate.  The Surcharge Amount addition
(or reduction, if applicable), will be added to (or decreased from, if applicable) the monthly Basic Rent due under the Lease,
and will be due and payable with the next regularly scheduled Basic Rent payment under such Schedule and on each payment date thereafter,
until it is recalculated on each January 1 or July 1 thereafter, as applicable.  In the event that there are no Surcharge
Base Rate increases in excess of .25%, the Surcharge will not be applicable.  In no event shall the Basic Rent payment reduce
below the amount set forth in the Schedule. 

 

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.   This surcharge will be added to
the monthly Basic Rent due under the Lease, and be due and payable with the next regularly scheduled Basic Rent payment under such
Schedule and on each payment date thereafter.

 

3.       REPRESENTATIONS,
WARRANTIES AND AGREEMENTS OF LESSEE. Lessee represents, warrants and agrees that, as of the effective date of this Lease and
of each Schedule: (a) Lessee has the form of business organization indicated, and is and will remain duly organized and existing
in good standing under the laws of the place of organization specified, under Lessee’s signature and is duly qualified to
do business wherever necessary to perform its obligations under the Lease Documents, including each jurisdiction in which the Equipment
is or will be located. Lessee’s legal name is as shown in the preamble of this Lease; and Lessee’s Federal Employer
Identification Number and organizational number are as set forth under Lessee’s signature. Within the previous six (6) years,
Lessee has not changed its name, done business under any other name, or merged or been the surviving entity of any merger, except
as disclosed to Lessor in writing. Lessee covenants that it will inform Lessor in writing prior to any changes in ownership or
management of Lessee. (b) The Lease Documents (1) have been duly authorized by all necessary action consistent with Lessee’s
form of organization, (2) do not require the approval of, or giving notice to, any governmental authority, (3) do not contravene
or constitute a default under any applicable law, Lessee’s organizational documents, or any agreement, indenture, or other
instrument to which Lessee is a party or by which it may be bound, and (4) constitute legal, valid and binding obligations of Lessee
enforceable against Lessee, in accordance with the terms thereof. (c) There are no pending actions or proceedings to which Lessee
is a party, and there are no other pending or threatened actions or proceedings of which Lessee has knowledge, before any court,
arbitrator or administrative agency, which, either individually or in the aggregate, would have a Material Adverse Effect. As used
herein, "Material Adverse Effect" shall mean (i) a materially adverse effect on the business, condition (financial
or otherwise), operations, performance or properties of Lessee, or on Lessor’s rights and remedies under this Lease, or (ii)
a material impairment of the ability of Lessee to perform its obligations under or remain in compliance with such Schedule or any
of the other Lease Documents. Further, Lessee is not in default under any financial or other material agreement that, either individually,
or in the aggregate, would have a Material Adverse Effect. (d) All of the Equipment covered by such Schedule is located solely
in the jurisdiction(s) specified in such Schedule. (e) Under the applicable laws of each such jurisdiction, such Equipment consists
(and shall continue to consist) solely of personal property and not fixtures. Such Equipment is removable from and is not essential
to the premises at which it is located. (f) The financial statements of Lessee (copies of which have been furnished to Lessor)
have been prepared in accordance with generally accepted accounting principles consistently applied ("GAAP"),
and fairly present Lessee's financial condition and the results of its operations as of the date of and for the period covered
by such statements, and since the date of such statements there has been no material adverse change in such conditions or operations.
(g) With respect to any Collateral, Lessee has good and marketable title to, rights in, and/or power to transfer a security interest
therein in accordance with this Agreement. (h) The prior owner of the Equipment is not an affiliate of Lessee. (i) The purchase
of the Equipment represented an arms’ length transaction and the purchase price for the Equipment specified therein is the
amount obtainable in an arms’ length transaction between a willing and informed buyer and a willing and informed seller under
no compulsion to sell.

 

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4.       FURTHER
ASSURANCES AND OTHER COVENANTS. Lessee agrees as follows: (a) Upon Lessor’s request, Lessee will furnish Lessor
with (1) Lessee's balance sheet, statement of income and statement of retained earnings, prepared in accordance with GAAP,
certified by a recognized firm of certified public accountants, within one hundred twenty (120) days of the close of each
fiscal year of Lessee, (2) Lessee’s quarterly financial report certified by the chief financial officer of Lessee,
within sixty (60) days of the close of each fiscal quarter of Lessee, and (3) all of Lessee’s Forms 10-K and 10-Q, if
any, filed with the Securities and Exchange Commission (“SEC”) as and when filed (by furnishing these SEC
forms, or making them publicly available in electronic form, in each case, within the time periods set forth in clauses (1)
and (2), Lessee shall be deemed to have satisfied the requirements of clauses (1), (2) and (3)). (b) Lessee shall obtain and
deliver to Lessor and/or promptly execute or otherwise authenticate any documents, filings, waivers (including any landlord
and mortgagee waivers and/or subordination and lien waiver agreements), releases and other records, and will take such
further action as Lessor may request in furtherance of Lessor’s rights under any of the Lease Documents. Lessee
covenants that there are currently no mortgages on the premises on which the Equipment is located, and that in the event any
mortgages are granted on such premises, Lessee shall immediately obtain mortgagee waivers in form and substance satisfactory
to Lessor from any such mortgagees. Lessee will deliver to Lessor any additional information reasonably requested by Lessor
relating to the Equipment and/or the general financial condition of Lessee. Lessee irrevocably authorizes Lessor to file
Uniform Commercial Code financing statements (“UCCs“), and other filings with respect to the Equipment,
including a registration of lien in the lien registry of any appropriate government agency and, to the extent any of the
Equipment constitutes a motor vehicle(s), certificates of title or other similar documentation naming Lessor as first
lienholder, with the titling agency in the appropriate jurisdiction. Without Lessor’s prior written consent, Lessee
agrees not to file any corrective or termination statements or partial releases with respect to any UCCs filed by Lessor
pursuant to this Lease. (c) Lessee shall provide written notice to Lessor: (1) thirty (30) days prior to any change in
Lessee’s name or jurisdiction or form of organization or any change of ownership or management of Lessee; (2) promptly
upon the occurrence of any Event of Default (as defined in Section 15) or event which, with the lapse of time or the giving
of notice, or both, would become an Event of Default (a "Default"); and (3) promptly upon Lessee becoming
aware of any alleged violation of applicable law relating to the Equipment or this Lease. (d) Lessee has been advised by
Lessor that the USA Patriot Act establishes minimum standards of account information to be collected and maintained by
Lessor, and that to help the government fight the funding of terrorism and money laundering activities, Federal law requires
(to the extent applicable) all financial institutions to obtain, verify and record information that identifies each person
who opens an account; and specifically, this means that when Lessee executes this Lease, Lessor may ask for Lessee’s
name and address, the date of birth of the officers executing this Lease, and other information that will allow Lessor to
identify Lessee; and that Lessor may also ask to see the driver’s license or other identifying documents of the
officers of Lessee executing this Lease. (e) Lessee is and will remain in full compliance with all applicable laws including,
without limitation, (i) ensuring that no person who owns a controlling interest in or otherwise controls Lessee is or shall
be (A) listed on the Specially Designated Nationals and Blocked Person List maintained by the Office of Foreign Assets
Control (“OFAC”), Department of the Treasury, and/or any other similar lists maintained by OFAC pursuant
to any authorizing statute, Executive Order or regulation, or (B) a person designated under Sections 1(b), (c) or (d) of
Executive Order No. 13224 (September 23, 2001), any related enabling legislation or any other similar Executive Orders, and
(ii) compliance with all applicable Bank Secrecy Act (“BSA”) laws, regulations and government guidance on BSA
compliance and on the prevention and detection of money laundering violations. (f) on the first day of each month, Lessee
shall furnish to Lessor a location report listing all locations on which Equipment is located, in form and substance
satisfactory to Lessor. (g) within 30 days of delivery of all Equipment, install on and provide Lessor access to GPS on all
Equipment, as satisfactory to Lessor in its sole discretion. (h) Lessee will not pay any dividend, or make any other
distribution on account of any shares of any class of its equity interests, or redeem, purchase, or otherwise acquire
directly or indirectly, any shares of any class of its equity interests. (i) Lessee will not pay salaries, bonuses, profit
sharing payments or any other compensation of any kind to any shareholders, guarantors, affiliates, managers, officers,
management level employee, or directors, whether as officers, directors, employees, shareholders, managers or otherwise, in
excess of 110% of that paid in the prior fiscal year. Lessee may not pay any consulting or management fees to shareholders,
subsidiaries, affiliates, managers, officers or directors without the prior written consent of the Lessee. (j) Lessee will
not enter into, or permit or suffer to exist, any transaction or arrangement with any shareholder, employee, director,
officer, affiliate, or shareholder of management, except on terms that are the same as to what that shareholder, employee,
director, officer, affiliate, or shareholder of management could obtain in arm’s-length transactions, with persons who
have no relationship with any such shareholder, employee, director, officer, affiliate, or shareholder of management.

 

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5.       CONDITIONS
PRECEDENT TO THIS LEASE. On the terms and conditions contained herein, Lessor hereby agrees to lease any Equipment under a
Schedule, upon Lessor's determination that all of the following have been satisfied: (a) Lessor having received the following,
in form and substance satisfactory to Lessor: (1) evidence as to due compliance with the insurance provisions of Section 11; (2)
UCCs, real property waivers and all other filings required by Lessor; (3) a certificate of an appropriate officer of Lessee certifying
(A) resolutions duly authorizing the transactions contemplated in the applicable Lease Documents, and (B) the incumbency and signature
of the officers of Lessee authorized to execute such documents; (4) the only manually executed original of the Schedule, and counterpart
originals of all other Lease Documents; (5) evidence satisfactory to Lessor of the ownership and title to the Equipment, including,
without limitation, certifications of the same; and (6) such other documents, agreements, instruments, certificates, opinions,
and assurances, as Lessor may require. (b) All representations and warranties provided by Lessee in favor of Lessor in any of the
Lease Documents shall be true and correct on the effective date of the related Schedule (Lessee's execution and delivery of the
Schedule shall constitute Lessee’s acknowledgment of the same). (c) There shall be no Default or Event of Default under the
Schedule or any other Lease Documents. The Equipment shall be at the locations disclosed in writing to Lessor by Lessee, as evidenced
by the Schedule or location report, and shall be in the condition and repair required hereby; and on the effective date of such
Schedule Lessee shall have good and marketable title to the Equipment described therein, free and clear of any claims, liens, attachments,
rights of others and legal processes ("Liens").

 

6.       ACCEPTANCE
UNDER LEASE. Lessee covenants and agrees that Lessee is already in possession of the Equipment and that Lessee’s possession
of the Equipment shall be deemed acceptance of the Equipment, even if Lessee fails to execute and deliver a Schedule describing
such Equipment. Each Schedule will evidence Lessee's unconditional and irrevocable acceptance under the Schedule of the Equipment
described therein.

 

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7.       USE
AND MAINTENANCE. Except as may be otherwise specified on any Schedule, (a) Lessee shall (1) use the Equipment solely in the
continental United States and in the conduct of its business, for the purpose for which the Equipment was designed, in a careful
and proper manner, and shall not permanently discontinue use of the Equipment; (2) operate, maintain, service and repair the Equipment,
and maintain all records and other materials relating thereto, (A) in accordance and consistent with (i) all maintenance and operating
manuals or service agreements, whenever furnished or entered into, including any subsequent amendments or replacements thereof,
issued by the supplier or service provider, (ii) the requirements of all applicable insurance policies, (iii) manufacturer’s
recommendations, (iv) the original purchase agreement under which such Equipment was acquired, so as to preserve all of Lessee’s
and Lessor’s rights thereunder, including all rights to any warranties, indemnities or other rights or remedies, as and if
applicable, (v) all applicable laws, and (vi) the prudent practice of other similar companies in the same business as Lessee, but
in any event, to no lesser standard than that employed by Lessee for comparable equipment owned or leased by it; and (B) without
limiting the foregoing, so as to cause the Equipment to be in good repair and operating condition and in at least the same condition
as when delivered to Lessee hereunder, except for ordinary wear and tear resulting despite Lessee's full compliance with the terms
hereof; (3) provide written notice to Lessor not less than thirty (30) days after any change of the location of any Equipment (or
the location of the principal garage of any Equipment, to the extent that such Equipment is mobile equipment) as specified in the
Schedule; and (4) not attach or incorporate the Equipment into any property except for other Equipment in such a manner that the
Equipment may be deemed to have become an accession to or a part of such other property. (b) Within a reasonable time, Lessee will
replace any parts of the Equipment which become worn out, lost, destroyed, damaged beyond repair or otherwise unfit for use, by
new or reconditioned replacement parts which are free and clear of all Liens and have a value, utility and remaining useful life
at least equal to the parts replaced (assuming that they were in the condition required by this Lease). Any modification or addition
to the Equipment that is required by this Lease shall be made by Lessee. An interest in all such parts, modifications and additions
to the Equipment immediately shall vest in Lessor, without any further action by Lessor or any other person, and they shall be
deemed incorporated in the Equipment for all purposes of the related Schedule. Unless replaced in accordance with this Section,
Lessee shall not remove any parts originally or from time to time attached to the Equipment, if such parts are essential to the
operation of the Equipment, are required by any other provision of this Lease or cannot be detached from the Equipment without
interfering with the operation of the Equipment or adversely affecting the value, utility and remaining useful life which the Equipment
would have had without the addition of such parts. Except as permitted in this Section, Lessee shall not make any material alterations
to the Equipment. (c) Lessee shall afford Lessor and/or its designated representatives immediate access to the premises where the
Equipment is located for the purpose of inspecting and appraising such Equipment and all applicable maintenance or other records
relating thereto at any time during normal business hours, at Lessee’s sole cost and expense. If any discrepancies are found
as they pertain to the general condition of the Equipment, Lessor will communicate these discrepancies to Lessee in writing. Lessee
shall then have thirty (30) days to rectify these discrepancies at its sole expense. Lessee shall pay all expenses of a re-inspection
by Lessor’s appointed representative, including travel costs.

 

8.       DISCLAIMER;
QUIET ENJOYMENT. (a) THE EQUIPMENT IS LEASED HEREUNDER “AS IS, WHERE IS”. LESSOR SHALL NOT BE DEEMED TO HAVE
MADE, AND HEREBY DISCLAIMS, ANY REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, AS TO THE EQUIPMENT, INCLUDING ANY
PART, OR ANY MATTER WHATSOEVER, INCLUDING, AS TO EACH ITEM OF EQUIPMENT, ITS DESIGN, CONDITION, MERCHANTABILITY, FITNESS FOR
ANY PARTICULAR PURPOSE, TITLE, ABSENCE OF ANY PATENT, TRADEMARK OR COPYRIGHT INFRINGEMENT OR LATENT DEFECT (WHETHER OR NOT
DISCOVERABLE BY LESSEE), COMPLIANCE OF SUCH ITEM WITH ANY APPLICABLE LAW, CONFORMITY OF SUCH ITEM TO THE PROVISIONS AND
SPECIFICATIONS OF ANY PURCHASE DOCUMENT OR TO THE DESCRIPTION SET FORTH IN THE RELATED SCHEDULE OR ANY OF THE OTHER LEASE
DOCUMENTS, OR ANY INTERFERENCE OR INFRINGEMENT (EXCEPT AS EXPRESSLY PROVIDED IN SECTION 8(b)), OR ARISING FROM ANY COURSE OF
DEALING OR USAGE OF TRADE, NOR SHALL LESSOR BE LIABLE, FOR ANY INDIRECT, INCIDENTAL, SPECIAL OR CONSEQUENTIAL DAMAGES OR FOR
STRICT OR ABSOLUTE LIABILITY IN TORT; AND LESSEE HEREBY WAIVES ANY CLAIMS ARISING OUT OF ANY OF THE FOREGOING. Without
limiting the foregoing, Lessor will not be responsible to Lessee or any other person with respect to, and Lessee agrees to
bear sole responsibility for, any risk or other matter that is the subject of Lessor’s disclaimer; and Lessor's
agreement to enter into this Lease and any Schedule is in reliance upon the freedom from and complete negation of liability
or responsibility for the matters so waived or disclaimed herein or covered by the indemnity in this Lease. So long as no
Event of Default has occurred and is continuing, Lessee may exercise Lessor’s rights, if any, under any warranty with
respect to the Equipment. Lessee’s exercise of such rights shall be at its sole risk, shall not result in any prejudice
to Lessor, and may be exercised only during the term of the related Schedule. Lessee shall not attempt to enforce any such
warranty by legal proceeding without Lessor's prior written approval. Lessee hereby agrees to indemnify, defend and hold
Lessor harmless for any and all losses, claims or damages suffered by Lessor as a result of warranty claims brought or
threatened by Lessee. (b) Lessor warrants that during the term of each Schedule, so long as no Event of Default has occurred
and is continuing, Lessee's possession and use of the Equipment leased thereunder shall not be interfered with by Lessor or
anyone rightfully claiming an interest through Lessor. The preceding warranty is in lieu of all other warranties by Lessor,
whether written, oral or implied, with respect to this Lease or the Equipment. Any actual or purported breach of this
warranty shall not give rise to any Abatement, but Lessee may bring a direct cause of action against Lessor for any actual
damages directly resulting from any such breach.

 

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9.      FEES AND TAXES. Lessee agrees
to: (a) (1) if permitted by law, file in Lessee’s own name or on Lessor’s behalf, directly with all appropriate taxing
authorities all declarations, returns, inventories and other documentation with respect to any personal property taxes (or any
other taxes in the nature of or imposed in lieu of property taxes) due or to become due with respect to the Equipment, and if not
so permitted by law, to promptly notify Lessor and provide it with all information required in order for Lessor to timely file
all such declarations, returns, inventories, or other documentation, and (2) pay on or before the date when due all such taxes
assessed, billed or otherwise payable with respect to the Equipment directly to the appropriate taxing authorities; (b) (1) pay
when due as requested by Lessor, and (2) defend and indemnify Lessor on a net after-tax basis against liability for all license
and/or registration fees, assessments, and sales, use, property, excise, privilege, value added and other taxes or other charges
or fees now or hereafter imposed by any governmental body or agency upon the Equipment or with respect to the manufacture, shipment,
purchase, ownership, delivery, installation, leasing, operation, possession, use, return, or other disposition thereof or the Rent
hereunder (other than taxes on or measured solely by the net income of Lessor); and (c) indemnify Lessor against any penalties,
charges, interest or costs imposed with respect to any items referred to in clauses (a) and (b) above (the items referred to in
clauses (a), (b), and (c) above being referred to herein as “Impositions”). Any Impositions which are not paid
when due and which are paid by Lessor shall, at Lessor's option, become immediately due from Lessee to Lessor, together with interest
thereon at the Default Rate. Lessee also agrees to make and cooperate with Lessor with any filings or registrations in any foreign
jurisdiction as requested by Lessor.

 

10.     INTENT;
GRANTING CLAUSE. (a) Lessee and Lessor intend that each Schedule, referencing or incorporating by reference
the terms of this Lease, qualifies as a statutory finance lease under Article 2A of the UCC. To the extent permitted by
applicable law, LESSEE WAIVES ANY RIGHT IT MAY HAVE UNDER SECTIONS 2A-303 AND 2A-508 THROUGH 2A-522 OF THE UCC. To the extent
that this Lease may be construed as a security agreement, Article 2A of the UCC does not apply, and each Schedule constitutes
the retention of a security interest by Lessor in the Equipment described therein. Lessee hereby authorizes Lessor to file
one or more UCC-1 financing statements as a “notice filing” with the Secretary of State of Lessee’s state
of incorporation or formation (as the case may be) and to file any continuation or amendment statements deemed necessary by
Lessor to maintain the effectiveness of such filings. To the extent any of the Equipment constitutes a motor vehicle(s),
Lessee hereby authorizes Lessor to file certificates of title, naming Lessor as first lienholder, with the titling agency in
the appropriate jurisdiction. (b) In order to secure: (A) the prompt payment of the Rent and all of the other amounts from
time to time outstanding with respect hereto and to each Schedule, and the performance and observance by Lessee of all of the
provisions hereof and thereof and of all of the other Lease Documents; and (B) the prompt payment, performance and observance
by Lessee of all other obligations of Lessee to Lessor under any other agreement or instrument, both now in existence and
hereafter created (as the same may be renewed, extended or modified), including (without limitation) any other Master Lease
Agreements and all Schedules now or hereafter executed pursuant thereto (collectively, the “Related Lease”);
Lessee hereby collaterally assigns, grants, and conveys to Lessor, a first priority security interest in and lien on all of
Lessee’s right, title and interest in and to all of the following (whether now existing or hereafter created, and
including any other collateral described on any rider hereto; collectively, the “Collateral”; all terms
used in this sentence but not otherwise defined in the Schedules or this Agreement shall have meanings given in the UCC): (1)
the Lessee's Equipment financed hereunder (to the extent this Lease is construed as a security agreement), Equipment
described in the attached Schedules or otherwise covered thereby (including all inventory, fixtures or other property
comprising the Equipment), together with all related software (embedded therein or otherwise) and general intangibles, all
additions, attachments, accessories and accessions thereto whether or not furnished or financed by the Lessor; (2) all
subleases, chattel paper, accounts, accounts receivable, security deposits, medallions, general intangibles, deposit
accounts, documents, other equipment, instruments, inventory, investment property, letter of credit rights and any supporting
obligations related to any of the foregoing relating thereto, and any and all substitutions, replacements or exchanges for
any such item of Equipment or other collateral, in each such case in which Lessee shall from time to time acquire an
interest; (3) all books and records pertaining to the foregoing; (4) all property of Lessee held by Lessor, including all
property of every description, in the custody of or in transit to Lessor for any purpose, including safekeeping, collection
or pledge, for the account of Lessee or as to which Lessee may have any right or power, including but not limited to cash and
(5) to the extent not otherwise included, all insurance, substitutions, replacements, exchanges, accessions, proceeds and
products of the foregoing, including without limitation, insurance proceeds. The collateral assignment, security interest and
lien granted herein shall survive the termination, cancellation or expiration of this Agreement or a particular Schedule
until such time as Lessee’s obligations hereunder, thereunder and under the other Lease Documents are fully and
indefeasibly discharged. The conveyance contemplated hereby is solely for the purpose of granting to Lessor a security
interest in the Equipment. All Equipment in which an interest is conveyed hereby shall remain in the possession of Lessee
pursuant to the Lease, unless prior written consent is obtained from Lessor permitting otherwise. (c)
If a court of competent jurisdiction concludes that any amounts hereunder constitute the payment of interest, it shall be at
an interest rate that is equal to the lesser of the maximum lawful rate permitted by applicable law or the effective interest
rate used by Lessor in calculating such amounts. To that end, it is agreed that the rate of interest hereunder shall not, at
any time, exceed any applicable lawful limitation on the rate or amount of interest that may be chargeable hereunder (the
 “Interest Rate Limitation”). In the event that the rate of interest otherwise applicable hereunder
(including any sums paid independent of this Lease and properly determined under applicable law to be interest) shall exceed
the Interest Rate Limitation, the interest rate applicable to this Lease shall automatically be reduced to the maximum
interest rate which does not exceed the Interest Rate Limitation, and sums paid as interest which would cause the effective
rate of interest hereunder to exceed the Interest Rate Limitation shall be applied to reduce the principal balance due
hereunder, if any, or otherwise refunded to Lessee. (d) Lessee hereby acknowledges and agrees that, to the extent that
Lessor’s participation in any purchase and lease of an item or items of Equipment pursuant to this Lease constitutes a
financing of Lessee’s acquisition of such item or items of Equipment, Lessee’s repayment of the amounts of such
financing shall apply on a “first-in/first-out” basis so that portions of the amounts of such financing used to
purchase such item or items of Equipment shall be deemed repaid in the chronological order of the use of such amounts to
purchase the same.

 

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11.     INSURANCE. Upon acceptance under
a Schedule, Lessee shall maintain all-risk insurance coverage with respect to the Equipment insuring against, among other things:
(a) any casualty to the Equipment (or any portion thereof), including loss or damage due to fire and the risks normally included
in extended coverage, malicious mischief and vandalism, for not less than the greater of full replacement value of the Equipment
or the Stipulated Loss Value thereof (as the same may be adjusted pursuant to Section 16 below); and (b) any commercial liability
arising in connection with the Equipment, including both bodily injury and property damage with a combined single limit per occurrence
of not less than the amount specified in the Schedule; having a deductible reasonably satisfactory to Lessor. Lessor shall have
the right to contact Lessee’s insurance provider at any time. Lessee covenants to provide Lessor prior written notice of
any changes to the insurance coverage required hereunder. Lessee shall cause to be provided to Lessor, not less than fifteen (15)
days prior to the scheduled expiration or lapse of such insurance coverage, evidence satisfactory to Lessor of renewal or replacement
coverage. The required insurance policies (including endorsements) shall (i) be in form and amount reasonably satisfactory to Lessor,
and written by insurers of recognized reputation and responsibility satisfactory to Lessor (but such insurer shall carry a current
rating by A.M. Best Company of at least "A" for a general policyholder and a financial rating of at least "VIII"),
(ii) be endorsed to name Lessor and Comerica Bank, N.A. as an additional insured (but without responsibility for premiums) and
lender’s loss payee (although in this instance, “lender” is the Lessor) and loss payee, (iii) provide that any
amount payable under the required casualty coverage shall be paid directly to Lessor as sole loss payee, and (iv) provide for thirty
(30) days’ written notice by such insurer of cancellation, material change, or non-renewal. In the event Lessee fails to
maintain insurance for the Equipment as required hereunder, upon Lessor’s receipt of notice of or otherwise knowledge: (i)
of an unpaid insurance premium; (ii) of a termination or cancellation of any required insurance policy; or (iii) that a required
insurance policy is not to be renewed and Lessee fails to provide replacement coverage at least fifteen (15) days prior to the
termination of existing coverage, Lessor may, at its option, procure and substitute another policy of insurance in the amount required
pursuant to the foregoing terms of this Lease with such companies as Lessor may select, the cost of which shall be paid by Lessee
upon demand. All sums paid by Lessor in procuring said insurance that are not promptly reimbursed by Lessee shall be added to Rent
due under the Lease, and shall be immediately due and payable without notice, with interest thereon at the Default Rate.

 

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12.    LOSS AND
DAMAGE. (a) At all times during the term of this Lease, Lessee shall indemnify and hold Lessor harmless for losses
arising from the loss, theft, confiscation, taking, unavailability, damage or partial destruction of the Equipment and Lessee
shall not be released from its obligations under any Schedule or other Lease Document in any such event. (b) Lessee shall
provide prompt written notice to Lessor of any Total Loss or any material damage to the Equipment. Any such notice must be
provided together with any damage reports provided to any governmental authority, the insurer, and any documents pertaining
to the repair of such damage, including copies of work orders, and all invoices for related charges. (c) Without limiting any
other provision hereof, Lessee shall repair all damage to any item of Equipment from any and all causes, other than a Total
Loss, so as to cause it to be in the condition and repair required by this Lease. (d) A “Total Loss” shall
be deemed to have occurred to an item of Equipment upon: (1) the actual or constructive total loss of any item of the
Equipment, (2) the loss, disappearance, theft or destruction of any item of the Equipment, or damage to any item of the
Equipment that is uneconomical to repair or renders it unfit for normal use, or (3) the condemnation, confiscation,
requisition, seizure, forfeiture or other taking of title to or use of any item of the Equipment or the imposition of any
Lien thereon by any governmental authority. On the next rent payment date following a Total Loss (a “Loss Payment
Date”), Lessee shall pay to Lessor the Basic Rent due on that date plus the greater of the (i) Stipulated Loss
Value of or (ii) the entire amount of insurance proceeds received by Lessee in connection with any Total Loss or other loss
or damage to the item or items of the Equipment with respect to which the Total Loss has occurred (the “Lost
Equipment”), together with any Other Payments due hereunder with respect to the Lost Equipment. Notwithstanding
anything to the contrary provided herein, to the extent any insurance proceeds are received by Lessee in connection with the
Equipment, such proceeds shall be immediately remitted to Lessor to be credited against the amounts owed under this Lease, as
determined by Lessor in its sole an absolute discretion. Upon making such payment, (i) the balance owed under the Lease shall
not be re-amortized; rather, the payment shall be applied to amounts due under the Lease in inverse chronological order of
the Lease termination date, commencing first with the Termination Value (defined below); (ii) Lessee shall remain liable for,
and pay as and when due, all future Basic Rent and all Other Payments until paid in full in accordance with the terms of this
Lease, and (iii) Lessor shall terminate its interest in any Lost Equipment to the extent it is paid off in full as determined
by Lessor, "AS IS WHERE IS", and “WITH ALL FAULTS”, but subject to the requirements of
any third party insurance carrier in order to settle an insurance claim. As used in this Lease, "Stipulated Loss
Value" shall mean the product of the portion of the Funding Amount allocated to the Lost Equipment as determined by
Lessor in its sole discretion, times the percentage factor applicable to the Loss Payment Date, as set forth in the Schedule
of Stipulated Loss Values incorporated in such Schedule. After the final rent payment date of the original term or any
renewal term of a Schedule, the Stipulated Loss Value shall be determined as of the last rent payment date during the
applicable term of such Schedule, and the applicable percentage factor shall be the last percentage factor set forth in the
Schedule of Stipulated Loss Values incorporated in such Schedule. (e) Lessor shall be under no duty to Lessee to pursue any
claim against any person in connection with a Total Loss or other loss or damage. (f) If Lessor receives a payment under an
insurance policy required under this Lease in connection with any Total Loss or other loss of or damage to an item of
Equipment, and such payment is both unconditional and indefeasible, then provided Lessee shall have complied with the
applicable provisions of this Section, Lessor shall either (1) credit such proceeds against any amounts owed by Lessee under
the Lease in inverse chronological order of the Lease termination date, commencing first with the Termination Value (defined
below), or (2) if received with respect to repairs made pursuant to Section 12(c), remit such proceeds to Lessee up to an
amount equal to the amount of the costs of repair actually incurred by Lessee, as established to Lessor’s
satisfaction.

 

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13.    REDELIVERY.
(a) If (i) an Event of Default occurs, and is continuing, with respect to a Schedule and Lessee is required to surrender or
return the Equipment described on such Schedule to Lessor, or (ii) this Lease expires and Lessee does not purchase the
Equipment pursuant to Rider No. 1 to the Equipment Schedule, Lessee shall, at Lessor’s option, deliver such Equipment
to Lessor, at Lessee’s sole cost and expense, free and clear of all Liens whatsoever, to such place(s) within the
continental United States as Lessor shall specify. Lessee shall provide, at its expense, transit insurance for the delivery
period in an amount equal to the replacement value of such Equipment and Lessor shall be named as the loss payee on all such
policies of insurance. Lessee shall cause: (1) the Supplier’s representative or other qualified person acceptable to
Lessor (the “Designated Person”) to de-install such Equipment in accordance with the Supplier’s
specifications (as applicable) and pack such Equipment properly and in accordance with the Supplier’s recommendations
(as applicable); and (2) such Equipment to be transported in a manner consistent with the Supplier’s recommendations
and practices (as applicable), at Lessee’s sole cost and expense. Upon surrender or delivery, as applicable, such
Equipment shall be: (i) in the same condition as when the related Schedule was executed, ordinary wear and tear excepted;
(ii) mechanically and structurally sound, capable of performing the functions for which such Equipment was originally
designed, in accordance with the Supplier’s published and recommended specifications (as applicable); (iii) delivered
or surrendered, as applicable, with all component parts in good operating condition (and all components must meet or exceed
the Supplier’s minimum recommended specifications, unless otherwise agreed by Lessor in writing); (iv) delivered or
surrendered, as applicable, with all software and documentation necessary for the operation of such Equipment for the
performance of the functions for which such Equipment was originally designed (whether or not such software is embedded in or
otherwise is a part of such Equipment); and (v) cleaned and cosmetically acceptable, with all Lessee-installed markings
removed and all rust, corrosion or other contamination having been removed or properly treated, and in such condition so that
it may be immediately installed and placed in service by a third party. Upon delivery, Lessee shall ensure that such
Equipment shall be in compliance with all applicable Federal, state and local laws, and health and safety guidelines. Lessee
shall be responsible for the cost of all repairs, alterations, inspections, appraisals, storage charges, insurance costs,
demonstration costs and other related costs necessary to cause such Equipment to be in full compliance with the terms of this
Lease. (b) If requested by Lessor, Lessee shall also deliver all related records and other data to Lessor, including all
drawings, records of maintenance, modifications, additions and major repairs, computerized maintenance history, and any
maintenance and repair manuals, if any (collectively, the “Records”). All drawings, manuals or other
documents delivered to Lessor that are subject to periodic revision will be fully up-to-date and current to the latest
revision standard of any particular manual or document. In the event any such Records are missing or incomplete, Lessor shall
have the right to cause the same to be reconstructed at Lessee’s expense. (c) In addition to Lessor's other rights and
remedies hereunder, if such Equipment and the related Records are not returned in a timely fashion, or if repairs are
necessary to place any item of Equipment in the condition required in this Section, Lessee shall (i) continue to pay to
Lessor per diem rent at the last prevailing lease rate under the applicable Schedule with respect to such item of Equipment,
for the period of delay in redelivery, and/or for the period of time reasonably necessary to accomplish such repairs, and
(ii) pay to Lessor an amount equal to the aggregate cost of any such repairs. Lessor's acceptance of such rent on account of
such delay and/or repair does not constitute an extension or renewal of the term of the related Schedule or a waiver of
Lessor's right to prompt return of such Equipment in proper condition. Such amount shall be payable upon the earlier of
Lessor’s demand or the return of such Equipment in accordance with this Lease. (d) Without limiting any other terms or
conditions of this Lease, the provisions of this Section are of the essence of each Schedule, and upon application to any
court of equity having jurisdiction, Lessor shall be entitled to a decree against Lessee requiring Lessee’s specific
performance of its agreements in this Section.

 

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14.     INDEMNITY.
Lessee shall indemnify, defend and keep harmless Lessor and any Assignee (as defined in Section 17), and their respective members,
managers, officers agents and employees (each, an "Indemnitee"), from and against any and all Claims (other than
such as may directly and proximately result from the actual, but not imputed, gross negligence or willful misconduct of such Indemnitee),
by paying or otherwise discharging same, when and as such Claims shall become due. Lessee agrees that the indemnity provided for
in this Section includes the agreement by Lessee to indemnify each Indemnitee from the consequences of its own simple negligence,
whether that negligence is the sole or concurring cause of the Claims, and to further indemnify each such Indemnitee with respect
to Claims for which such Indemnitee is strictly liable. Lessor shall give Lessee prompt notice of any Claim hereby indemnified
against and Lessee shall be entitled to control the defense of and/or to settle any Claim, in each case, so long as (1) no Default
or Event of Default has occurred and is then continuing, (2) Lessee confirms, in writing, its unconditional and irrevocable commitment
to indemnify each Indemnitee with respect to such Claim, (3) Lessee is financially capable of satisfying its obligations under
this Section, (4) Lessor approves the defense counsel selected by Lessee, and (5) there is no reasonable risk of criminal liability
being imposed on Lessor or any of its Indemnitees as a result of such Claim. The term "Claims" shall mean all
claims, allegations, harms, judgments, settlements, suits, actions, debts, obligations, damages (whether incidental, consequential
or direct), demands (for compensation, indemnification, reimbursement or otherwise), losses, penalties, fines, liabilities (including
strict liability), financing or securitization losses or charges, other charges that Lessor (or any of its affiliates) has incurred
or for which it is responsible, in the nature of interest, Liens, financing charges and any other costs (including attorneys' fees
and disbursements and any other legal or non-legal expenses of investigation or defense of any Claim, whether or not such Claim
is ultimately defeated or enforcing the rights, remedies or indemnities provided for hereunder, or otherwise available at law or
equity to Lessor), of whatever kind or nature, contingent or otherwise, matured or unmatured, foreseeable or unforeseeable, by
or against any person, arising on account of (A) any Lease Document, including the performance, breach (including any Default or
Event of Default) or enforcement of any of the terms thereof, or any early repayment of Lessee’s obligations under the Lease
Documents (whether pursuant to acceleration, liquidation or otherwise) or any early termination of the Lease, or (B) the Equipment,
or any part or other contents thereof, any substance at any time contained therein or emitted therefrom, including any hazardous
substances, or the premises at which the Equipment may be located from time to time, or (C) the ordering, acquisition, delivery,
installation or rejection of the Equipment, the possession of any property to which it may be attached from time to time, maintenance,
use, condition, ownership or operation of any item of Equipment, and by whomsoever owned, used, possessed or operated, during the
term of any Schedule with respect to that item of Equipment, the existence of latent and other defects (whether or not discoverable
by Lessor or Lessee) any claim in tort for negligence or strict liability, and any claim for patent, trademark or copyright infringement,
or the loss, damage, destruction, theft, removal, return, surrender, sale or other disposition of the Equipment, or any item thereof,
including Claims involving or alleging environmental damage, or any criminal or terrorist act, or for whatever other reason whatsoever.
If any Claim is made against Lessee or an Indemnitee, the party receiving notice of such Claim shall promptly notify the other,
but the failure of the party receiving notice to so notify the other shall not relieve Lessee of any obligation hereunder.

 

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15.
    DEFAULT. A default shall be deemed to have occurred hereunder and under a Schedule upon the
occurrence of any of the following (each, an "Event of Default"): (a) non-payment of Basic Rent within five
(5) days of the applicable rent payment date; (b) non-payment of any Other Payment within five (5) days after it is due; (c)
failure to maintain, use or operate the Equipment in compliance with applicable law; (d) breach by Lessee of its covenants
pursuant to Section 4(e) hereof; (e) failure to obtain, maintain and comply with all of the insurance coverages required
under this Lease that is not cured within five (5) days after notice thereof; (f) any transfer or encumbrance, or the
existence of any Lien, except for Permitted Liens; (g) a payment or other default by Lessee under any loan, lease, guaranty
or other financial obligation to Lessor (including, without limitation, the Related Lease) or its affiliates which default
entitles the other party to such obligation to exercise remedies; (h) a payment or other default by Lessee under any material
loan, lease, guaranty or other material financial obligation to any third party which default has been declared; (i) an
inaccuracy in any representation or breach of warranty by Lessee (including any false or misleading representation or
warranty) in any financial statement or Lease Document, including any omission of any substantial contingent or unliquidated
liability or claim against Lessee; (j) the commencement of any bankruptcy, insolvency, receivership or similar proceeding by
or against Lessee or any of its properties or business (unless, if involuntary, the proceeding is dismissed within sixty (60)
days of the filing thereof) or the rejection of this Lease or any other Lease Document in any such proceeding; (k) the
failure by Lessee generally to pay its debts as they become due or its admission in writing of its inability to pay the same;
(l) Lessee shall (1) enter into any transaction of merger or consolidation, unless Lessee shall be the surviving entity (such
actions being referred to as an "Event"), unless the surviving entity is organized and existing under the
laws of the United States or any state, and prior to such Event: (A) such person executes and delivers to Lessor (x) an
agreement satisfactory to Lessor, in its sole discretion, containing such person's effective assumption, and its agreement to
pay, perform, comply with and otherwise be liable for, in a due and punctual manner, all of Lessee's obligations having
previously arisen, or then or thereafter arising, under any and all of the Lease Documents, and (y) any and all other
documents, agreements, instruments, certificates, opinions and filings requested by Lessor; and (B) Lessor is satisfied as to
the creditworthiness of such person, and as to such person's conformance to the other standard criteria then used by Lessor
when approving transactions similar to the transactions contemplated in this Lease; (2) cease to do business as a going
concern, liquidate, or dissolve; or (3) sell, transfer, or otherwise dispose of all or substantially all of its assets or
property; (m) if Lessee is privately held and effective control of Lessee's voting capital stock/membership
interests/partnership interests, issued and outstanding from time to time, is not retained by the present holders (unless
Lessee shall have provided thirty (30) days' prior written notice to Lessor of the proposed disposition and Lessor shall have
consented thereto in writing); (n) if Lessee is a publicly held corporation and there is a material change in the ownership
of Lessee’s capital stock, unless Lessor is satisfied as to the creditworthiness of Lessee and as to Lessee's
conformance to the other standard criteria then used by Lessor for such purpose immediately thereafter; (o) there occurs a
default or anticipatory repudiation under or termination of any guaranty executed in connection with this Lease; (p) failure
to satisfy the requirements of any financial covenants set forth herein, or in any rider to this Lease or any Schedule; or
(q) failure to timely pay any material suppliers and mechanics for work or repairs to the Equipment; or (r) breach by Lessee
of any other covenant, condition or agreement (other than those in items (a)-(q)) under this Lease or any of the other Lease
Documents that continues for thirty (30) days after Lessor’s written notice to Lessee (but such notice and cure period
will not be applicable unless such breach is curable by practical means within such notice period). The occurrence of an
Event of Default with respect to any Schedule shall, at the sole discretion of Lessor, constitute an Event of Default with
respect to any or all Schedules to which it is then a party. Notwithstanding anything to the contrary set forth herein,
Lessor may exercise all rights and remedies hereunder independently with respect to each Schedule and the Equipment covered
by such Schedule.

 

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16.    REMEDIES. (a) If an Event of
Default occurs, and is then continuing, with respect to any Schedule, the Lessor thereunder may (in its sole discretion) exercise
any one or more of the following remedies with respect to such Schedule and any or all other Schedules to which such Lessor is
then a party: (1) proceed at law or in equity, to enforce specifically Lessee’s performance or to recover damages; (2) declare
each such Schedule in default, and terminate each such Schedule or otherwise terminate Lessee’s right to use the Equipment
and Lessee’s other rights, but not its obligations, thereunder and Lessee shall immediately assemble, make available and,
if Lessor requests, return the Equipment to Lessor in accordance with the terms of Section 13 of this Lease; (3) enter any premises,
without prior notice, where any item of Equipment is located and take immediate possession of and remove (or disable in place)
such item (and/or any unattached parts) by self-help, summary proceedings or otherwise without liability; (4) use the premises
where the Equipment is located to store, repair, assemble, auction, sell or otherwise deal with the Equipment, without cost or
liability to Lessor; (5) sell, re-lease or otherwise dispose of any or all of the Equipment, whether or not in Lessor's possession,
at public or private sale, with or without notice to Lessee, and apply or retain the net proceeds of such disposition, with Lessee
remaining liable for any deficiency and with any excess being for the account of Lessee; (6) enforce any or all of the preceding
remedies with respect to any Equipment, and apply any deposit or other cash collateral, or any proceeds of any such Equipment,
at any time to reduce any amounts due to Lessor; (7) demand and recover from Lessee all Liquidated Damages and all Other Payments
whenever the same shall be due; and (8) exercise any and all other remedies allowed by applicable law, including the UCC. As used
herein, “Liquidated Damages” shall mean the liquidated damages (all of which, Lessee hereby acknowledges, are
damages to be paid in lieu of future Basic Rent and are reasonable in light of the anticipated harm arising by reason of an Event
of Default, and are not a penalty) described in the first sentence of Section 16(b). Upon the occurrence of the Event of Default
described in Section 15(j) hereof, the remedy provided in Clause (8) above shall be automatically exercised without the requirement
of prior written notice to Lessee or of any other act or declaration by Lessor, and the Liquidated Damages described therein shall
be immediately due and payable. For the avoidance of doubt, if Lessor or any of its affiliates has entered into a securitization
or similar financing transaction of which the Lease Documents are a part, the Basic Rent, the Liquidated Damages and the Stipulated
Loss Value shall be increased to an amount necessary to repay in full Lessor’s (or any of its affiliates’) outstanding
balance under such securitization or similar financing transaction documents in respect of the Lease Documents in the case of any
early repayment of Lessee’s obligations under the Lease Documents (whether pursuant to acceleration, liquidation or otherwise)
or any early termination of the Lease.

 

If at any time after the occurrence of
an Event of Default, that is then continuing, Lessor determines that the cost of maintaining the Lease or otherwise extending
credit to Lessee has increased because such Event of Default has the effect of reducing the rate of return on Lessor’s capital
or increasing the cost of Lessor’s capital, then the Basic Rent, the Liquidated Damages and the Stipulated Loss Value shall
be increased to compensate Lessor for such increased cost and reduction in such rate of return.

 

(b) If an Event of Default occurs
with respect to any Schedule and/or the Equipment covered thereby, and such Event of Default has not been cured, upon demand by
Lessor, Lessee shall pay to Lessor an amount calculated as the Stipulated Loss Value of the Equipment (determined as of the next
rent payment date after the date of the occurrence of the subject Event of Default), together with all other Rent due with respect
to the related Schedule as of such determination date, and all Enforcement Costs (defined in Section 16(c)), less a credit for
any disposition proceeds, if applicable pursuant to the application provisions in the next sentence. If Lessor demands the Liquidated
Damages under this Section 16(b), and recovers and sells the Equipment, any proceeds received in good and indefeasible funds shall
be applied by Lessor, with respect to the related Schedule: first, to pay all Enforcement Costs, to the extent not previously
paid; second, to pay to Lessor an amount equal to any unpaid Rent due and payable, together with the Liquidated Damage
amounts specified in this Section 16(b), to the extent not previously paid; third, to pay to Lessor any interest accruing
on the amounts covered by the preceding clauses, at the Default Rate, from and after the date the same becomes due, through the
date of payment; and fourth, (A) if the Lessor under such Schedule is also the Lessor under any other Schedules (whether
by retaining the same, or as Assignee), to satisfy any remaining obligations under any or all such other Schedules, or (B) if
such Lessor is not the Lessor under any other Schedule, or if Lessee’s obligations to such Lessor under such other Schedules
have been fully and indefeasibly satisfied, to reimburse Lessee for such amounts to the extent paid by Lessee as Liquidated Damages
pursuant to this Section 16(b).

 

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(c) Unless already specifically provided
for in Section 16(b), if an Event of Default occurs and is then continuing with respect to any Schedule, Lessee shall also be liable
for all of the following (“Enforcement Costs”): (1) all unpaid Rent due before, during or after exercise of
any of the foregoing remedies, and (2) all reasonable legal fees (including consultation, drafting notices or other documents,
expert witness fees, sending notices or instituting, prosecuting or defending litigation or arbitration) and other enforcement
costs and expenses incurred by reason of any Default or Event of Default or the exercise of Lessor's rights or remedies, including
all expenses incurred in connection with the return or other recovery of any Equipment in accordance with the terms of this Lease
or in placing such Equipment in the condition required hereby, or the sale, re-lease or other disposition (including but not limited
to costs of transportation, possession, storage, insurance, taxes, lien removal, repair, refurbishing, advertising and brokers’
fees, and reasonable legal fees and costs for inside and outside counsel), and sales or use taxes incurred by Lessor in connection
with any disposition of the Equipment after the occurrence of an Event of Default, and all other pre-judgment and post-judgment
enforcement related actions taken by Lessor or any actions taken by Lessor in any bankruptcy case involving Lessee, the Equipment,
or any other person. From and after the date on which an Event of Default occurs, Lessee shall pay interest to Lessor with respect
to all amounts due hereunder until such amounts are received by Lessor in good funds at a per annum interest rate that is the lesser
of eighteen (18) percent or the maximum rate permitted by applicable law (the “Default Rate”). No right or remedy
is exclusive and each may be used successively and cumulatively. Any failure to exercise the rights granted hereunder upon any
Default or Event of Default shall not constitute a waiver of any such right. No extension of time for payment or performance of
any of Lessee’s obligations hereunder shall operate to release, discharge, modify, change or affect the original liability
of Lessee for such obligations, either in whole or in part. In any action to repossess any Equipment or other Collateral, Lessee
waives any bonds and any surety or security required by any applicable laws as an incident to such repossession. Notices of Lessor’s
intention to accelerate, acceleration, nonpayment, presentment, protest, dishonor or any other notice whatsoever (other than as
expressly set forth herein) are waived by Lessee. Any notice given by Lessor of any disposition of the Equipment or any Collateral
or other intended action of Lessor which is given in accordance with this Lease at least five (5) business days prior to such action,
shall constitute fair and reasonable notice of such action. The execution or acceptance of a Schedule shall not constitute a waiver
by Lessor of any pre-existing Default or Event of Default. With respect to any disposition of any Equipment or Collateral pursuant
to this Section, (i) Lessor shall have no obligation, subject to the requirements of commercial reasonableness, to clean-up or
otherwise prepare the same for disposition, (ii) Lessor may comply with any applicable law in connection with any such disposition,
and any actions taken in connection therewith shall not be deemed to have adversely affected the commercial reasonableness of any
disposition thereof, (iii) Lessor may disclaim any title or other warranties in connection with any such disposition, (iv) if Lessor
purchases any of the Equipment or Collateral at a public or private sale pursuant hereto, Lessor may pay for the same by crediting
some or all of Lessee’s obligations under any Schedule, and (v) Lessee shall remain responsible for any deficiency remaining
after Lessor’s exercise of its remedies and application of any funds or credits against Lessee’s obligations under
any Schedule, and Lessee shall be entitled to any excess after such application.

 

17.     ASSIGNMENT.
(a) LESSEE SHALL NOT ASSIGN, DELEGATE, TRANSFER OR ENCUMBER ANY OF ITS RIGHTS OR OBLIGATIONS HEREUNDER OR UNDER ANY SCHEDULE,
OR ITS LEASEHOLD INTEREST OR ANY COLLATERAL, SUBLET THE EQUIPMENT OR OTHERWISE PERMIT THE EQUIPMENT TO BE OPERATED OR USED BY,
OR TO COME INTO OR REMAIN IN THE POSSESSION OF, ANYONE BUT LESSEE, WITHOUT LESSOR’S PRIOR WRITTEN CONSENT. Without limiting
the foregoing, (1) Lessee may not attempt to dispose of any of the Equipment, and (2) Lessee shall (A) maintain the Equipment
free from all Liens, other than Permitted Liens, (B) notify Lessor immediately upon receipt of notice of any Lien affecting the
Equipment, and (C) defend Lessor's interest in the Equipment. A “Permitted Lien” shall mean any Lien for Impositions,
Liens of mechanics, materialmen, or suppliers and similar Liens arising by operation of law, provided that any such Lien is incurred
by Lessee in the ordinary course of business, for sums that are not yet delinquent or are being contested in good faith and with
due diligence, by negotiations or by appropriate proceedings which suspend the collection thereof and, in Lessor's sole discretion,
(i) do not involve any substantial danger of the sale, forfeiture or loss of the Equipment or any interest therein, and (ii) for
the payment of which adequate assurances or security have been provided to Lessor. No disposition referred to in this Section
shall relieve Lessee of its obligations, and Lessee shall remain primarily liable under each Schedule and all of the other Lease
Documents. (b) Lessor may at any time with or without notice to Lessee grant a security interest in, sell, assign, delegate or
otherwise transfer (an “Assignment”) all or any part of its interest in the Equipment, this Lease or any Schedule
and any related Lease Documents or any Rent thereunder, or the right to enter into any Schedule, and Lessee shall perform all
of its obligations thereunder, to the extent so transferred, for the benefit of the beneficiary of such Assignment (such beneficiary,
including any successors and assigns, an “Assignee”). Lessee agrees not to assert against any Assignee any
Abatement (without limiting the provisions of Section 2) or Claim that Lessee may have against Lessor, and Assignee shall not
be bound by, or otherwise required to perform any of Lessor’s obligations, unless expressly assumed by such Assignee. Lessor
shall be relieved of any such assumed obligations. If so directed in writing, Lessee shall pay all Rent and all other sums that
become due under the assigned Schedule and other Lease Documents directly to the Assignee or any other party designated in writing
by Lessor or such Assignee. Lessee acknowledges that Lessor’s right to enter into an Assignment is essential to Lessor and,
accordingly, waives any restrictions under applicable law with respect to an Assignment and any related remedies. Upon the request
of Lessor or any Assignee, Lessee also agrees (i) to promptly execute and deliver to Lessor or to such Assignee an acknowledgment
of the Assignment in form and substance satisfactory to the requesting party, an insurance certificate and such other documents
and assurances reasonably requested by Lessor or Assignee, and (ii) to comply with all other reasonable requirements of any such
Assignee in connection with any such Assignment. Upon such Assignment and except as may otherwise be provided herein, all references
in this Lease to “Lessor” shall include such Assignee. (c) Subject always to the foregoing, this Lease and each Schedule
shall inure to the benefit of, and are binding upon, Lessee’s and Lessor’s respective successors and permitted assigns
(and, without limiting the foregoing, shall bind all persons who become bound as a “new debtor” to this Lease and
any Schedule, as set forth in UCC Section 9-203(e)).

 

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18.    LESSEE
REPRESENTATIVE; JOINT AND SEVERAL OBLIGATIONS

 

18.1      Appointment;
Nature of Relationship. Each Lessee is appointing 5J Trucking as its contractual representative hereunder and under each other
Lease Document, and each Lessee irrevocably authorizes 5J Trucking to act as each Lessee’s contractual representative with
the rights and duties set forth in this Lease and in the other Lease Documents. 5J Trucking agrees to act as such contractual representative
for the other Lessee. Lessor and its officers, directors, agents, or employees are not liable to 5J Trucking or any Lessee for
any action taken or omitted to be taken by 5J Trucking or Lessee under this Section or this Lease.

 

18.2      Notices
to Lessee Representative. Each Lessee must immediately notify 5J Trucking of the occurrence of any Default or Event of Default.
If 5J Trucking receives such a notice, 5J Trucking must give prompt notice thereof to Lessor. Any notice provided to 5J Trucking
under this Lease or any Lease Document constitutes notice to Lessee on the date received or deemed receives by 5J Trucking.

 

18.3      Waivers.
Each Lessee expressly waives (a) any and all rights of subrogation, reimbursement, indemnity, exoneration, contribution, or any
other claim that any Lessee may now or hereafter have against the other Lessee or other person directly or contingently liable
for Lessee’s obligations under the Lease Documents, or against or with respect to the other Lessee’s property (including,
any property that is Collateral for Lessee’s obligations under the Lease Documents), arising from the existence or performance
of this Lease, until termination of this Lease and repayment in full of Lessee’s obligations under the Lease Documents and
(b) any defense it may otherwise have to the payment and performance of Lessee’s obligations under the Lease Documents based
on any contention that its liability hereunder and under the Lease Documents is limited and not joint and several. Each Lessee
acknowledges and agrees that the foregoing waivers serve as a material inducement to Lessor’s agreement to enter into this
Lease, and that Lessor is relying on each specific waiver and all such waivers in entering into this Lease.

 

18.4      Joint
and Several Obligations.

 

(a)        All
of Lessee’s obligations under the Lease Documents are the joint and several obligations under the Lease Documents of
each Lessee, and each Lessee must make payment upon the maturity of all obligations under the Lease Documents by acceleration
or otherwise, and this obligation and liability on the part of Lessee is not affected by any extensions, renewals, and
forbearance granted by Lessor to any Lessee, Lessor’s failure to give any Lessee notice, Lessor’s failure to
pursue or preserve its rights against any Lessee, the release by Lessor of any Collateral now or hereafter acquired from any
Lessee, and any agreement by Lessee to pay upon any notice issued pursuant thereto is unconditional and unaffected by prior
recourse by Lessor to the other Lessee or any Collateral for Lessee’s obligations or the lack thereof. Each Lessee
waives all suretyship defenses. Without limiting the generality of the foregoing, each Lessee acknowledges and agrees that
any and all actions, inactions, or omissions by any one or more, or all, of the Lessee in connection with, related to, or
otherwise affecting this Lease or any of the other Lease Documents are the obligations of, and inure to and are binding upon,
each and all of the Lessee, jointly and severally.

 

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(b)        Each
covenant, agreement, obligation, representation and warranty of the Lessee contained in this Lease is the joint and several undertaking
of Lessee. Each Lessee acknowledges that its obligations undertaken herein might be construed to consist, at least in part, of
the guarantee of Lessee’s obligations under the Lease Documents of the other Lessee and, in full recognition of that fact,
Lessee consents and agrees that Lessor may, at any time and from time-to-time without notice or demand, whether before or after
any actual or purported termination, repudiation, or revocation of this Lease by any Lessee, and without affecting the enforceability
or continuing effectiveness of this Lease as to any Lessee but subject to the Lessees’ written consent with respect to clauses
(i) and (ii) of this subsection to the extent Lessor does not have the unilateral right to make such changes under the terms of
the Lease Documents as the result of the occurrence of an Event of Default or otherwise: (i) supplement, restate, modify, amend,
increase, decrease, extend, renew, or otherwise change the time for payment or the terms of this Lease or any part thereof, including
any increase or decrease of the rate(s) of interest thereon; (ii) supplement, restate, modify, amend, increase, decrease or waive,
or enter into or give any agreement, approval or consent with respect to, this Lease or any part thereof, or any of the Lease Documents,
or any condition, covenant, default, remedy, right, representation, or term thereof or thereunder; (iii) accept partial payments;
(iv) release, reconvey, terminate, waive, abandon, fail to perfect, subordinate, exchange, substitute, transfer or enforce any
security or guarantees, and apply any security and direct the order or manner of sale thereof as Lessor, in its discretion determines;
(v) release any person or entity from any personal liability with respect to this Lease or any part thereof; (vi) settle, release
on terms satisfactory to Lessor or by operation of applicable law or otherwise liquidate or enforce any security or guaranty in
any manner, consent to the transfer of any security and bid and purchase at any sale; or (vii) consent to the merger, change or
any other restructuring or termination of the corporate or partnership existence of any Lessee, or any other person, and correspondingly
restructure Lessee’s obligations under the Lease Documents, and any merger, change, restructuring or termination does not
affect the liability of any Lessee or the continuing effectiveness of this Lease, or the enforceability of this Lease with respect
to all or any part of Lessee’s obligations under the Lease Documents.

 

(c)        Each
Lessee represents that: (i) under this Lease, the Lessee desire to utilize their potential to receive financial accommodations
on a consolidated basis to the same extent possible as if they were merged into a single corporate entity and that this Lease reflects
the establishment of lease arrangements that would not otherwise be available to the Lessee if Lessee were not jointly and severally
liable for payment of Lessee’s obligations under the Lease Documents; (ii) it has determined that it will benefit specifically
and materially from the leasing terms contemplated by this Lease; (iii) it is both a condition precedent to Lessor’s obligations
hereunder and a desire of the Lessee that Lessee execute and deliver to Lessor this Lease; and (iv) the Lessee have requested and
bargained for the structure and security for the terms contemplated by this Lease. Lessee agrees if its joint and several liability
hereunder, or if any security interests securing the joint and several liability, would, but for the application of this Section,
be unenforceable under applicable law, then the joint and several liability and each security interests is valid and enforceable
to the maximum extent that would not cause the joint and several liability or security interests to be unenforceable under applicable
law, and the joint and several liability and the security interest is treated as having been automatically amended accordingly
at all relevant times.

 

(d)        To
the extent that any Lessee, under this Lease as a joint and several obligor or a Guarantor under this Section, repays any of Lessee’s
obligations under the Lease Documents constituting obligations owing by another Lessee or other obligations under the Lease Documents
incurred directly and primarily by any other Lessee (an “Accommodation Payment”), then the Lessee making an Accommodation
Payment is entitled to contribution and indemnification from, and, be reimbursed by, each of the other Lessee in an amount, for
each of the other Lessee, equal to a fraction of the Accommodation Payment, the numerator of which fraction is the other Lessee’s
 “Allocable Amount” (as defined below) and the denominator of which is the sum of the Allocable Amounts of all of the
Lessee. As of any date of determination, the “Allocable Amount” of each Lessee is equal to the maximum amount of liability
for Accommodation Payments that could be asserted against that Lessee hereunder without (i) rendering that Lessee “insolvent”
within the meaning of Section 101(31) of the Bankruptcy Code, Section 2 of the Uniform Fraudulent Transfer Act (“UFTA”)
or Section 2 of the Uniform Fraudulent Conveyance Act (“UFCA”), (ii) leaving that Lessee with unreasonably small capital
or assets, within the meaning of Section 548 of the United States Bankruptcy Code, Section 4 of the UFTA, or (iii) leaving that
Lessee unable to pay its debts as they become due within the meaning of Section 548 of the United States Bankruptcy Code or Section
4 of the UFTA, or Section 5 of the UFCA. All rights and claims of contribution, indemnification, and reimbursement under this Section
are subordinate in right of payment to the prior payment in full of Lessee’s obligations under the Lease Documents. The provisions
of this Section, to the extent expressly inconsistent with any provision in any Lease Document, supersede the inconsistent provision.

 

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18.5       Cross-Guaranty.

 

(a)        Notwithstanding
the fact that the parties agreed that the Lessee are jointly and severally liable for all of Lessee’s obligations under the
Lease Documents, if for any reason the Lessee are found in a final order by a court of competent jurisdiction to not be jointly
and severally liable for all of Lessee’s obligations under the Lease Documents, the provisions of this Section 18.5 will
apply and Lessee absolutely and unconditionally guarantees to Lessor and its successors and assigns, the full and prompt payment
(whether at stated maturity, by acceleration or otherwise) and performance of, all of Lessee’s obligations under the Lease
Documents owed or hereafter owing to Lessor by the other Lessee. Each Lessee agrees that its guaranty obligation hereunder is in
addition to all other guaranty obligations and is a guaranty of payment and performance and not of collection, and that its obligations
under this Section are absolute and unconditional, irrespective of, and unaffected by:

 

(i)         The
genuineness, validity, regularity, enforceability or any future amendment of, or change in, this Lease, any other Lease Document
or any other agreement, document or instrument to which the other Lessee are or may become a party.

 

(ii)        The
absence of any action to enforce this Lease (including this Section) or any other Lease Document or the waiver or consent by Lessor
with respect to any of the provisions thereof.

 

(iii)       The
existence, value or condition of, or failure to perfect its Lien against, any security for Lessee’s obligations under the
Lease Documents or any action, or the absence of any action, by Lessor in respect thereof (including, without limitation, the release
of any such security).

 

(iv)       Any
other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety or guarantor
(other than payment in full).

 

(b)        Each
Lessee agrees that its obligations under this Section 18.5 are not discharged until the payment and performance, in full, of Lessee’s
obligations under the Lease Documents has occurred (other than contingent indemnification obligations for which no claim has been
threatened or asserted). Each Lessee is treated, and will be in the same position, as a principal obligor with respect to Lessee’s
obligations under the Lease Documents guaranteed hereunder. Each Lessee expressly waives all rights it may have now or in the future
under any statute, or at common law, or at law or in equity, or otherwise, to compel Lessor to proceed in respect of Lessee’s
obligations under the Lease Documents guaranteed hereunder against the other Lessee or any other party or against any security
for the payment and performance of Lessee’s obligations under the Lease Documents before proceeding against, or as a condition
to proceeding against, that Lessee. Each Lessee agrees that any notice or directive given at any time to Lessor that is inconsistent
with the waiver in the immediately preceding sentence will be null and void and may be ignored by Lessor, and, in addition, may
not be pleaded or introduced as evidence in any litigation relating to this Lease (including this Section 18.5) for the reason
that such pleading or introduction would be at variance with the written terms of this Lease (including this Section 18.5), unless
Lessor has specifically agreed otherwise in writing. It is agreed among the Lessee and Lessor that the foregoing waivers are of
the essence of the transaction contemplated by this Lease and the other Lease Documents and that, but for the provisions of this
Section and the waivers, Lessor would decline to enter into this Lease.

 

(c)        Each
Lessee agrees that in no event does Lessor have any obligation (although it may be entitled, at its option) to proceed against
the other Lessee or any other person or any real or personal property pledged to secure Lessee’s obligations under the Lease
Documents before seeking satisfaction from that Lessee, and Lessor may proceed, prior or subsequent to, or simultaneously with,
the enforcement of Lessor’s rights under this Section, to exercise any right or remedy that it may have against any property,
real or personal, as a result of any Lien it may have as security for all or any portion of Lessee’s obligations under the
Lease Documents.

 

(d)        In
addition to the waivers contained elsewhere in this Section, Lessee waives, and agrees that it may not at any time insist
upon, plead or in any manner whatever claim or take the benefit or advantage of, any appraisal, valuation, stay, extension,
marshaling of assets or redemption laws, or exemption, whether now or at any time hereafter in force, that may delay, prevent
or otherwise affect the performance by that Lessee of the obligations under the Lease Documents guaranteed under, or the
enforcement by Lessor of, this Section. Each Lessee waives diligence, presentment, and demand (whether for non-payment or
protest or of acceptance, maturity, extension of time, change in nature or form of Lessee’s obligations under the Lease
Documents, acceptance of further security, release of further security, composition or agreement arrived at as to the amount
of, or the terms of, Lessee’s obligations under the Lease Documents, notice of adverse change in the other
Lessee’ financial condition or any other fact that might increase the risk to that Lessee) with respect to any of
Lessee’s obligations under the Lease Documents guaranteed hereunder or all other demands whatsoever and waives the
benefit of all provisions of law that are or might be in conflict with the terms of this Section. Each Lessee represents,
warrants and agrees that, as of the effective date of this Lease, its obligations under this Section are not subject to any
offsets or defenses against Lessor or any other Lessee of any kind. Each Lessee further agrees that its obligations under
this Section are not be subject to any counterclaims, offsets or defenses against Lessor or against the other Lessee of any
kind that may arise in the future.

 

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(e)        Notwithstanding
anything to the contrary in this Lease or in any other Lease Document, and except as set forth in this Section, Lessee:

 

(i)         Subordinates
and defers, to the fullest extent possible at all times before the payment in full of Lessee’s obligations under the Lease
Documents (other than contingent indemnification obligations for which no claim has been threatened or asserted), on behalf of
itself and its successors and assigns (including any surety) and any other person, any and all rights at law or in equity to subrogation,
reimbursement, exoneration, contribution, indemnification, set off, or any other rights that could accrue to a surety against a
principal, to a guarantor against a principal, to a guarantor against a maker or obligor, to an accommodation party against the
party accommodated, to a holder or transferee against a maker, or to the holder of any claim against any person, and that a Lessee
may have or hereafter acquire against the other Lessee or any person in connection with or as a result of Lessee’s performance
of this Section, or any other documents to which that Lessee is a party or otherwise.

 

(ii)        Expressly
and irrevocably subordinates and defers any “claim” (as that term is defined in the Bankruptcy Code) of any kind against
the Lessee before the payment in full of Lessee’s obligations under the Lease Documents (other than contingent indemnification
obligations for which no claim has been threatened or asserted), and further agrees that it may not have or assert any such rights
against any person (including any surety), either directly or as an attempted set off to any action commenced against the other
Lessee by Lessor or any other person before the payment in full of Lessee’s obligations under the Lease Documents (other
than contingent indemnification obligations for which no claim has been threatened or asserted).

 

(iii)       Acknowledges
and agrees (x) that this subordination and deferral is intended to benefit Lessor and does not limit or otherwise effect that Lessee’s
liability hereunder or the enforceability of this Section, and (y) that Lessor and its respective successors and assigns are intended
third party beneficiaries of the waivers and agreements set forth in this Section.

 

(f)         If
Lessor proceeds to realize its benefits under any of the Lease Documents giving or creating a Lien upon any Collateral or any real
estate collateral (whether owned by a Lessee or by any other person), either by judicial foreclosure or by non-judicial sale or
enforcement, Lessor may, at its sole option, determine which of its remedies or rights it may pursue without affecting any of its
rights and remedies under this Section. If, in the exercise of any of its rights and remedies, Lessor forfeits any of its rights
or remedies, including its right to enter a deficiency judgment against any Lessee or any other person, whether because of any
applicable laws pertaining to “election of remedies” or the like, the Lessee consent to such action by Lessor and waive
any claim based upon such action, even if such action by Lessor results in a full or partial loss of any rights of subrogation
that a Lessee might otherwise have had but for such action by Lessor. Any election of remedies that results in the denial or impairment
of Lessor’s right to seek a deficiency judgment against a Lessee does not impair the other Lessee’ obligation to pay
the full amount of Lessee’s obligations under the Lease Documents. If Lessor bids at any foreclosure or trustee’s sale
or at any private sale permitted by law or the Lease Documents, Lessor may bid all or less than the amount of Lessee’s obligations
under the Lease Documents and the amount of such bid need not be paid by Lessor but will be credited against Lessee’s obligations
under the Lease Documents. The amount of the successful bid at any such sale, whether by Lessor or any other successful bidder,
are conclusively treated as be the fair market value of the Collateral and the difference between such bid amount and the remaining
balance of Lessee’s obligations under the Lease Documents is conclusively treated as the amount of Lessee’s obligations
under the Lease Documents guaranteed under this Section, notwithstanding that any present or future law or court decision or ruling
may have the effect of reducing the amount of any deficiency claim to which Lessor might otherwise be entitled but for such bidding
at any such sale.

 

(g)        The
Lessee agree that the guaranty set forth in this Section 18.5 is a continuing guaranty that remains in full force and effect until
the payment and performance in full of Lessee’s obligations under the Lease Documents (other than contingent indemnification
obligations for which no claim has been threatened or asserted).

 

(h)        Each
Lessee’s liability under this Section is limited to an amount not to exceed as of any date of determination the greater of:

 

(i)         the
net amount of all obligations incurred by the other Lessee under this Lease and transferred to or directly benefiting the subject
Lessee; or

 

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(ii)        the
Lessee’s Allocable Amount, after taking into account, among other things, that Lessee’s right of contribution and indemnification
from the other Lessee under Section 18.4.

 

19.        MISCELLANEOUS.

 

(a)       This
Lease, each Schedule and any Riders hereto or thereto, constitute the entire agreement between the parties with respect to the
subject matter hereof and thereof and shall not be amended or modified in any manner except by a document in writing executed by
both parties.

 

(b)      This
Lease has been negotiated at arm’s length between persons knowledgeable in the matters dealt with herein. In addition, each
party to this Lease has been represented by independent legal counsel of such party’s own choice. Accordingly, any rule of
law or any other statute, legal decision or common law principle of similar effect that would require interpretation of any uncertainty
or ambiguity in this Lease against the party that drafted it, is of no application and is hereby expressly waived. This Lease shall
be construed and interpreted according to the ordinary meaning of the words used so as to fairly accomplish the purposes and intentions
of the parties and this Lease.

 

(c)      
If any provision of this Lease, as applied to any party or to any circumstance, shall be found by a court of competent jurisdiction
to be void, invalid or unenforceable, the same shall in no way affect any other provision of this Lease, the application of any
such provision in any other circumstance, or the validity or enforceability of this Lease, and any provision which is found to
be void, invalid or unenforceable shall be curtailed and limited only to the extent necessary to bring such provision within the
requirements of the law.

 

(d)       Each
party to this Lease warrants, represents and agrees that, in executing this Lease, such party (i) does so with knowledge of any
and all rights that such party may have with respect to the provisions of this Lease, (ii) has carefully read and considered this
Lease and fully understands its contents and the significance of its contents, (iii) is entering into this Lease of such party’s
own informed and free will, based upon such party’s own judgment and without any coercion or fear of retaliation, and (iv)
has obtained independent legal advice with respect to this Lease.

 

(e)       Lessee
hereby waives presentment for payment, protest and demand, notice of protest, demand, dishonor and nonpayment under this Lease,
notice of acceleration, notice of intent to accelerate, and any and all other notices or matters of a like nature, and consent
to any and all renewals and extensions of the time of payment hereof, including, but not limited to, any notice required under
the Civil Code of any applicable jurisdiction(s).

 

(f)        The
representations, warranties and agreements of Lessee herein shall be deemed to be continuing and to survive the execution and delivery
of this Lease, each Schedule and any other Lease Documents. With respect to any of Lessee's obligations under the other provisions
of this Lease which have accrued but not been fully satisfied, performed or complied with prior to the expiration or earlier cancellation
or termination of such Schedule, shall survive the expiration or earlier cancellation or termination thereof.

 

(g)       All
of Lessee’s obligations hereunder and under any Schedule shall be performed at Lessee’s sole expense. Lessee shall
reimburse Lessor promptly upon demand for all reasonable expenses incurred by Lessor in connection with (1) any action taken by
Lessor at Lessee’s request, or in connection with any option, (2) the filing or recording of real property waivers and UCCs,
(3) any Enforcement Costs not recovered pursuant to Section 16, (4) all inspections and appraisals, and (5) all lien search reports
(and copies of filings) requested by Lessor. If Lessee fails to perform any of its obligations with respect to a Schedule, Lessor
shall have the right, but shall not be obligated, to effect such performance, and Lessee shall reimburse Lessor, upon demand, for
all expenses incurred by Lessor in connection with such performance. Lessor's effecting such compliance shall not be a waiver of
Lessee's default. All amounts payable under this Section, if not paid when due, shall be paid to Lessor together with interest
thereon at the Default Rate.

 

(h)       Lessee
irrevocably appoints Lessor as Lessee's attorney-in-fact (which power shall be deemed coupled with an interest) to: (1) make minor
corrections to manifest errors in factual data in any Schedule and/or any addenda, attachments, exhibits and/or riders to this
Lease or any Schedule; and (2) execute, endorse and deliver any documents and checks or drafts relating to or received in payment
for any loss or damage under the policies of insurance required by this Lease, but only to the extent that the same relates to
the Equipment, or are required by titling agencies in order to reflect Lessor as the lienholder with respect to certificates of
title pertaining to motor vehicles (if any) comprising the Equipment.

 

(i)       
Lessee agrees to execute, acknowledge, deliver and record or file such further instruments (including, without limitation,
further deeds of trust, security agreements, financing statements, continuation statements and assignments
of rents or leases) and do such further acts as may be necessary, desirable or proper to implement the provisions of the
immediately preceding subparagraph or to carry out more effectively the purposes of this Lease.

 

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(j)
        LESSOR AND LESSEE HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH LESSEE
AND/OR LESSOR MAY BE PARTIES ARISING OUT OF OR IN ANY WAY PERTAINING TO THIS LEASE.

 

(k)
      All notices (excluding billings and communications in the ordinary course of business)
hereunder shall be in writing, personally delivered, delivered by overnight courier service, or sent by certified mail, return
receipt requested, addressed to the other party at its respective address stated below the signature of such party or at such
other address as such party shall from time to time designate in writing to the other party; and shall be effective from the date
of receipt.

 

(l)        During
the term of this Lease, Lessee shall not prepay any indebtedness owning to any person (other than Lessor) if such prepayment impairs
Lessee’s ability to fulfill its obligations hereunder on a timely basis.

 

(m)      During
the term of this Lease, Lessee shall not enter into any acquisition, merger, consolidation, reorganization, or recapitalization,
or reclassify its capital, or liquidate, wind up, or dissolve (or suffer any liquidation or dissolution), or convey, sell, assign,
lease, transfer, or otherwise dispose of, in one transaction or a series of transactions, all or any substantial part of its business,
property, or assets, whether now owned or hereafter acquired, or acquire by purchase or otherwise all or substantially all of
the properties, assets, or other evidence of beneficial ownership of any person or entity, or commit to do any of the foregoing.

 

(n)      During
the term of this Lease, Lessee shall not guarantee or otherwise become in any way liable with respect to any obligation of any
person or entity except by endorsement of instruments or items of payment for deposit to the account of Lessee which are transmitted
or turned over to Lessor.

 

(o)       During
the term of this Lease, Lessee shall not take any action concerning or with respect to the Equipment that is inconsistent with
the provisions or purposes of this Lease or that would otherwise impair or threaten to impair Lessor’s interest in the Equipment
or Lessor’s rights under the Lease.

 

(p)
       This Lease shall not be effective unless and until accepted by execution by an officer
of Lessor at the address as set forth below the signature of Lessor. THIS LEASE AND ALL OF THE OTHER LEASE DOCUMENTS, AND THE
RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER, SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF MICHIGAN (THE “STATE”) (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES
OF THE STATE, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND PERFORMANCE, REGARDLESS OF THE LOCATION OF THE EQUIPMENT). Lessee
hereby irrevocably consents and agrees that any legal action, suit, or proceeding arising out of or in any way in connection with
this Lease may be instituted or brought in the courts of the State of Michigan or any U.S. District Court in the State of Michigan,
as Lessor may elect. Lessee hereby irrevocably accepts and submits to, for itself and in respect of its property, generally and
unconditionally, the non-exclusive jurisdiction of any such court, and to all proceedings in such courts if the action is commenced
by Lessor and to the exclusive jurisdiction of such courts if commenced by Lessee. The parties agree that a summons and complaint
commencing an action or proceeding in any such court shall be properly served and shall confer personal jurisdiction if served
personally or by certified mail to it at the mailing address below Lessee’s signature, or as it may provide in writing from
time to time, or as otherwise provided under the laws of the State.

 

(q)       In
the event of any litigation between or among the parties hereto respecting or arising out of this Lease, the successful or prevailing
party shall be entitled to recover reasonable attorneys’ fees and other costs in connection therewith, including any attorneys’
fees incurred after a judgment has been rendered by a court of competent jurisdiction. Any judgment shall include an attorneys’
fees clause which shall entitle the judgment creditor to recover reasonable attorneys’ fees incurred to enforce a judgment
hereon, which attorneys’ fees shall be an element of post-judgment costs. The parties agree that this attorneys’ fee
provision shall not merge into any judgment.

 

(r)       All
amounts payable hereunder are payable in lawful money of the United States. Lessee agrees to pay all costs of collection when
incurred, including reasonable attorneys’ fees and costs, whether or not a suit or action is instituted to enforce this
Lease, including but not limited to court costs, appraisal fees, the cost of searching records, obtaining title reports and title
insurance and trustee’s fees, to the extent permitted by applicable law.

 

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(s)
       This Lease and all of the other Lease Documents may be executed in counterparts. Photocopies,
email or facsimile transmissions of signatures shall be deemed original signatures and shall be fully binding on the parties to
the same extent as original signatures. The transfer or possession of the “Original” of this Lease shall be irrelevant
to the full or collateral assignment of, or grant of security interest in, any Schedule; provided, however, no security interest
in any Schedule may be created through the transfer, possession or control, as applicable, of any counterpart of such Schedule
other than the original thereof, which shall be identified as the document or record (as applicable) marked "Original"
and all other counterparts shall be marked "Duplicate".

 

(t)        Each
right, power and remedy given to Lessor by this Lease or any Rider shall be in addition to all other rights, powers, and remedies
given to Lessor by this Lease or any Rider or by virtue of any statute, rule of law, or any other agreement between Lessee and
Lessor. Any forbearance or failure or delay by Lessor in exercising any right, power, or remedy hereunder shall not preclude the
further exercise thereof. Every right, power, and remedy of Lessor shall continue in full force and effect until such right, power,
or remedy is specifically waived by an instrument in writing signed by Lessor.

 

(u)
       If Lessor is required by the terms hereof to pay to or for the benefit of Lessee any
amount received as a refund of an Imposition or as insurance proceeds, Lessor shall not be required to pay such amount, if any
Default has occurred and not been cured or any Event of Default shall have occurred and not been waived by Lessor. In addition,
if Lessor is required by the terms hereof to cooperate with Lessee in connection with certain matters, such cooperation shall
not be required if a Default or Event of Default has then occurred and is continuing.

 

(v)
       To the extent Lessor’s consent is requested or required with respect to any matter,
the reasonableness of Lessor's withholding of such consent shall be determined based on the then existing circumstances; provided,
that Lessor's withholding of its consent shall be deemed reasonable for all purposes if (i) the taking of the action that is the
subject of such request, might result (in Lessor's discretion), in (A) an impairment of Lessor's rights, title or interests hereunder
or under any Schedule or other Lease Document, or to the Equipment, or (B) expose Lessor to any Claims or Impositions, or (ii)
Lessee fails to provide promptly to Lessor any filings, certificates, opinions or indemnities required by Lessor as a condition
to such consent. Neither Lessee nor any of its affiliates will in the future issue any press release or other public disclosure
using the name of Lessor or its affiliates or referring to this Agreement or the other Lease Documents without at least five (5)
business days' prior notice to Lessor and without the prior written consent of Lessor unless (and only to the extent that) such
Lessee or affiliate is required to do so under applicable law and then, in any event, such Lessee or affiliate will consult with
Lessor before issuing such press release or other public disclosure. Notwithstanding the foregoing, any Lessee may make such public
disclosures with respect to the transactions contemplated by the Lease Documents in connection with all regular and periodic reports
(including without limitation any Form 8-Ks) and all registration statements and prospectuses, if any, filed by Lessee with any
securities exchange or with the Securities and Exchange Commission or any governmental or private regulatory authority. Lessee
hereby authorizes Lessor and its affiliates to make mention of Lessor’s participation in this transaction in its marketing,
sales materials, printed media, tombstones or web-based material.

 

(w)
      The recitals set forth above are incorporated herein by reference.

 

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20.
        DEFINITIONS AND RULES OF CONSTRUCTION. (a) The following terms when used in
this Lease or in any of the Schedules have the following meanings: (1) “affiliate”: with respect to any
given person, shall mean (i) each person that directly or indirectly owns or controls, whether beneficially or as a trustee,
guardian or other fiduciary, five (5) percent or more of the voting stock, membership interest or similar equity interest
having ordinary voting power in the election of directors or managers of such person, (ii) each person that controls, is
controlled by, or is under common control with, such person, or (iii) each of such person’s officers, directors,
members, joint venturers and partners. For the purposes of this definition, “control” of a person means the
possession, directly or indirectly, of the power to direct or cause the direction of its management or policies, whether
through the ownership of voting securities, by contract or otherwise; (2) "applicable law" or
 "law": any law, rule, regulation, ordinance, order, code, common law, interpretation, judgment, directive,
decree, treaty, injunction, writ, determination, award, permit or similar norm or decision of any governmental authority; (3) “AS
IS, WHERE IS”: AS IS, WHERE IS, without warranty, express or implied, with respect to any matter whatsoever;
(4) "business day": any day, other than a Saturday, Sunday, or legal holiday for commercial banks under the
laws of the state of the Lessor’s notice address; (5) "governmental authority": any federal, state,
county, municipal, regional or other governmental authority, agency, board, body, instrumentality or court, in each case,
whether domestic or foreign; (6) "person": any individual, corporation, limited liability entity,
partnership, joint venture, or other legal entity or a governmental authority, whether employed, hired, affiliated, owned,
contracted with, or otherwise related or unrelated to Lessee or Lessor; and (7) "UCC" or "Uniform
Commercial Code": the Uniform Commercial Code as in effect in the State or in any other applicable jurisdiction; and
any reference to an article (including Article 2A) or section thereof shall mean the corresponding article or section
(however termed) of any such applicable version of the Uniform Commercial Code. (b) The following terms when used herein or
in any of the Schedules shall be construed as follows: (1) "herein," "hereof,"
 "hereunder," etc.: in, of, under, etc. this Lease or such other Lease Document in which such term appears
(and not merely in, of, under, etc. the section or provision where the reference occurs); (2) "including":
means including without limitation unless such term is followed by the words "and limited to," or similar words;
and (3) "or": at least one, but not necessarily only one, of the alternatives enumerated. Any defined term
used in the singular preceded by "any" indicates any number of the members of the relevant class. Any Lease
Document or other agreement or instrument referred to herein means such agreement or instrument as supplemented and amended
from time to time. Any reference to Lessor or Lessee shall include their permitted successors and assigns. Any reference to
an applicable law shall also mean such law as amended, superseded or replaced from time to time.

 

21.        RIDERS.
Riders Nos. 1 through 2 attached hereto are incorporated in this Lease.

 

22.
       CROSS-COLLATERALIZATION AND CROSS-DEFAULT. Notwithstanding anything to the contrary
provided herein or any other document, this Lease and any Schedules, the Equipment and the Collateral in which Lessor now or hereafter
has an interest or are now or hereafter executed in connection herewith are cross-collateralized and cross-defaulted with all
other agreements between Lessor and Lessee such that the Equipment and Collateral identified on each Schedule or described herein,
stand as security for all obligations of Lessee to Lessor.

 

signatures
on following page

 

    21

     

    

 

 

IN WITNESS WHEREOF, the parties hereto
have caused this Master Lease Agreement to be duly executed as of the day and year first above set forth.

 

	5J
    TRUCKING	 
	Lessee
       	 
	 	 
	By:	 /s/ Matthew Flemming	 
	Name: 	Matthew Flemming	 
	Title:	CEO	 

 

	4090
    N Hwy 79	 
	Palestine,
    Texas 75801	 
	Form
    of Organization: Limited liability company	 
	Jurisdiction
    of Organization: Texas	 
	Federal
    Employer Identification No.: 20-0679726	 
	Organizational
    Number:	 	 

 

	5J
    OILFIELD SERVICES, LLC	 
	Lessee	 
	 	 
	By:	/s/ Matthew Flemming	 
	Name: 	Matthew Flemming	 
	Title:	CEO	 

 

	4090
    N Hwy 79	 
	Palestine,
    Texas 75801	 
	Form
    of Organization: Limited liability company	 
	Jurisdiction
    of Organization: Texas	 
	Federal Employer Identification No.:	 	 

	Organizational Number	 	 

 

	UTICA
    LEASECO, LLC	 
	Lessor	 
	 	 
	By:	/s/ Ryann Whitmore	 
	Name:	Ryann Whitmore	 
	Title:	Assistant Vice President	 
	 	 
	905
    South Boulevard East	 
	Rochester
    Hills, Michigan 48307	 

 

    19

     

    

 

 

 

RIDER NO. 1 TO MASTER LEASE AGREEMENT

 

To and part of Master Lease Agreement dated
as of the 27th day of February, 2020 (the "Lease"), between UTICA LEASECO, LLC, its successors and assigns ("Lessor"),
5J TRUCKING, a Texas limited liability company, d/b/a 5J and 5J Trucking, LLC (“5J Trucking”), its successors and permitted
assigns, and 5J OILFIELD SERVICES, LLC, a Texas limited liability company (“5J Oil”), its successors and permitted
assigns, (hereafter referred to both individually, and collectively (if more than one), as "Lessee").

 

AUTOMATED CLEARING
HOUSE PAYMENTS.

 

All payments
of Basic Rent pursuant to Section 2 of the Lease shall be paid by automatic debit from Lessee’s bank account (the “Bank
Account”) specified on the Authorization for Pre-Arranged Payments attached hereto as Exhibit No. 1 (the “Authorization”).

 

In addition to
the conditions precedent specified in Section 5 of the Lease, Lessor’s agreement to purchase and lease Equipment under a
Schedule is conditioned upon Lessor having received the Authorization duly executed by Lessee, in form and substance satisfactory
to Lessor.

 

In addition to
the representations and warranties made by Lessee in Section 3 of this Lease, Lessee represents, warrants and agrees that, as of
the effective date of this Lease and of each Schedule: (a) the Bank Account is Lessee’s primary operating account as of the
date of this Lease, and any additional bank accounts specified on Exhibit No. 2 attached hereto constitute all other bank accounts
maintained by Lessee as of the date of this Lease; and (b) Lessee shall provide to Lessor prior written notice if at any time the
Bank Account ceases to be Lessee’s primary operating account or if Lessee establishes other bank accounts in addition to
those specified on Exhibit No. 2 attached hereto.

 

In addition to
the Events of Default specified in Section 15 of this Lease, Lessee’s failure to maintain the Bank Account as its primary
operating account, without (a) prior notice to Lessor, (b) the designation of a replacement primary operating account, and (c)
execution and delivery to Lessor of an Authorization with respect to such replacement account, shall constitute an Event of Default.

 

If any payment
of Basic Rent or any other amount due under the Lease intended to be paid by automated clearing house debit is not processed or
returned on the basis of insufficient funds in the designated bank account, upon demand, Lessee shall pay Lessor a charge equal
to five (5) percent of the amount of such payment.

 

	5J
    TRUCKING	 
	Lessee
     	 
	 	 
	By:	/s/
    Matthew Flemming	 
	Name:  	Matthew
    Flemming	 
	Title:	CEO
     	 
	 	 
	5J
    OILFIELD SERVICES, LLC	 
	Lessee
     	 
	 	 
	By:	/s/
    Matthew Flemming	 
	Name:	Matthew
    Flemming	 
	Title:	CEO	 

 

    

     

    

 

Exhibit 1

 

 

 

    

     

    

 

Exhibit 2

 

Bank Account Information of Lessee

 

    

     

    

 

 

 

RIDER NO. 2 TO MASTER LEASE AGREEMENT

 

To and part of Master Lease Agreement dated
as of the 27th day of February, 2020 (the "Lease"), between UTICA LEASECO, LLC, its successors and assigns ("Lessor"),
5J TRUCKING, a Texas limited liability company, d/b/a 5J and 5J Trucking, LLC (“5J Trucking”), its successors and permitted
assigns, and 5J OILFIELD SERVICES, LLC, a Texas limited liability company (“5J Oil”), its successors and permitted
assigns, (hereafter referred to both individually, and collectively (if more than one), as "Lessee").

 

ADDITIONAL CONDITIONS
PRECEDENT. In addition to the conditions precedent specified in Section 5 of the Lease, Lessor’s agreement to purchase
and lease any Equipment under a Schedule is conditioned upon Lessor having received the following, in form and substance reasonably
satisfactory to Lessor: The Master Lease Guaranty (the “Guaranty”), in form and substance satisfactory to Lessor, duly
executed by

 

SMG Industries, Inc.

 

(if more than one, collectively, the “Guarantor”).

 

If applicable, Lessee shall also deliver all original subleases
for all or any part of the Equipment or Collateral, together with an assignment of all rights (but no obligations) by Lessee to
Lessor thereunder.

 

	UTICA
    LEASECO, LLC	 
	Lessor	 
	 	 
	By:	/s/
    Ryann Whitmore	 
	Name:	Ryann
    Whitmore	 
	Title:	Assistant
    Vice President	 

 

	5J TRUCKING	 
	Lessee	 
	 	 
	By:	/s/ Matthew Flemming	 
	Name:	Matthew Flemming	 
	Title:	CEO	 

 

	5J OILFIELD SERVICES, LLC	 
	Lessee	 
	 	 
	By:	/s/ Matthew Flemming	 
	Name:	Matthew Flemming	 
	Title:	CEO	 

 

    
1

     

    

 

MASTER
LEASE GUARANTY

 

THIS MASTER LEASE GUARANTY (this "Guaranty")
is executed and delivered by

 

SMG Industries, Inc.

 

(if more than one,
collectively, "Guarantor") in favor of UTICA LEASECO, LLC, its successors and assigns ("Lessor"),
in connection with that certain Master Lease Agreement dated as of the 27th day of February, 2020, together with all Equipment
Schedules executed or to be executed pursuant thereto (the "Lease"), between Lessor, 5J TRUCKING, a Texas limited
liability company, d/b/a 5J and 5J Trucking, LLC (“5J Trucking”), its successors and permitted assigns, and 5J OILFIELD
SERVICES, LLC, a Texas limited liability company (“5J Oil”), its successors and permitted assigns, (hereafter referred
to both individually, and collectively (if more than one), as "Lessee"). All capitalized terms shall have the
meanings defined in the Lease Documents (as such term is defined in the Lease).

 

In order to induce
Lessor to enter into the Lease (execution and delivery hereof being a condition precedent to Lessor’s obligations under the
Lease), and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Guarantor
hereby UNCONDITIONALLY GUARANTEES (a) to pay Lessor in lawful money of the United States all Rents and other sums due under
the Lease Documents or otherwise, or any substitutions therefor, in the amounts, at the times and in the manner set forth in the
Lease Documents, plus all costs and expenses; and (b) to perform, at the time and in the manner set forth in the Lease Documents,
all of the terms, covenants and conditions therein required to be kept, observed or performed by Lessee (collectively, the “Obligations”).
If there is more than one guarantor of the Obligations, the obligations of each guarantor are joint and several.

 

1.       This
Guaranty is a continuing one and shall terminate only upon full payment of all rents and all other sums due under the Lease Documents
and the performance of all of the terms, covenants and conditions therein required to be kept, observed or performed by Lessee,
including such payment and performance under all schedules made a part of said Lease Documents, whether to be performed before
or after the last rent payment has been made under the Lease Documents. Guarantor expressly waives the right to revoke or terminate
this Guaranty, including any statutory right of revocation under the laws of any state. This Guaranty is a guaranty of prompt payment
and performance (and not merely a guaranty of collection).

 

2.       Guarantor
authorizes Lessor, with Lessee’s consent where required, without notice or demand, and without affecting his liability hereunder,
from time to time to: (a) change the amount, time or manner of payment of rent or other sums reserved in the Lease Documents;
(b) change any of the terms, covenants, conditions or provisions of the Lease Documents; (c) amend, modify, change or
supplement the Lease Documents; (d) consent to Lessee’s assignment of the Lease Documents or to the sublease of all,
or any portion, of the equipment covered by the Lease Documents; (e) receive and hold security for the payment of this Guaranty
or the performance of the Lease Documents, and exchange, enforce, waive and release any such security; and (f) apply such
security and direct the order or manner of sale thereof as Lessor in its discretion may determine.

 

3.       Guarantor
waives any right to require Lessor to: (a) proceed against Lessee, any other guarantor or any other person directly or
contingently liable for the payment of any of the Obligations; (b) proceed against or exhaust any security held from
Lessee, any other guarantor or any other person directly or contingently liable for the payment of any of the Obligations;
(c) pursue any other remedy in Lessor’s power whatsoever; or (d) notify Guarantor of any adverse change in
Lessee’s financial condition or of any default by Lessee in the payment of any rent or other sums reserved in the Lease
Documents or in the performance of any term, covenant or condition therein required to be kept, observed or performed by
Lessee. Guarantor waives any defense arising by reason of any disability or other defense of Lessee (except to the extent the
Obligations have been paid), any lack of authority of Lessee with respect to the Lease Documents, the invalidity, illegality
or lack of enforceability of the Lease Documents from any cause whatsoever, the failure of Lessor to acquire title to the
equipment (if applicable) subject to the Lease Documents or to perfect or maintain perfection of any interest therein or the
cessation from any cause whatsoever of the liability of Lessee (including, without limitation, discharge in bankruptcy), and
any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge, release or defense of a
guarantor or surety, or that might otherwise limit recourse against Guarantor; provided, however, that Guarantor does not
waive any defense arising from the due performance by Lessee of the terms and conditions of the Lease Documents. Lessor may,
at Lessor’s election, foreclose on any security held by Lessor and sell, lease, transfer or otherwise deal with such
Equipment, by one or more judicial or nonjudicial sales, without affecting or impairing in any way the liability of
Guarantor. Guarantor waives any defense arising out of any such election by Lessor, even though such election operates to
impair or extinguish any right of reimbursement or subrogation or other right or remedy of Lessor against Lessee or any
security. In the absence of agreeing to the waivers contained in this paragraph, Guarantor may have the right of subrogation
or reimbursement against Lessee. For example, if Lessor elects to take back and sell the Equipment through a nonjudicial
sale, Guarantor gives up any potential defenses by agreeing to the foregoing waivers. Guarantor also expressly waives any
defense or benefit that may be derived from any “one form of action” rule or anti-deficiency statute he would
otherwise have under the laws of any state. Upon demand, Guarantor agrees to pay and perform the Obligations regardless of
any existing or future offset or claim which may be asserted by Guarantor. This Guaranty and Guarantor’s payment
obligations hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment of any of
the Obligations is rescinded or must otherwise be restored or returned by Lessor, all as though such payment had not been
made. Lessor’s good faith determination as to whether a payment must be restored or returned shall be binding on
Guarantor. Until the payment and performance of all Obligations due or to be performed by Lessee, Guarantor shall have no
right of subrogation against Lessee, and waives any right to enforce any remedy which Lessor now has or hereafter may have
against Lessee, and waives any benefit of, and any right to participate in, any security now or hereafter held by Lessor.
Guarantor waives all presentments, demands for performance, notices of nonperformance, protests, notices of dishonor, and
notices of acceptance of this Guaranty. Guarantor also waives notice of and hereby consents to any amendment, modification,
supplement, extension, renewal or restatement of the Lease Documents.

 

    
2

     

    

 

4.       Guarantor
represents and warrants to Lessor that:

 

(a)       (1) The execution,
delivery and performance hereof by Guarantor do not contravene any law, governmental rule, regulation or order now binding on Guarantor,
or contravene the provisions of, or constitute a default under, or result in the creation of any lien or encumbrances upon the
property of Guarantor under, any material agreement, indenture or other instrument to which Guarantor is a party or by which he
or his property is bound. (2) The financial statements of Guarantor (copies of which have been furnished to Lessor) fairly present
Guarantor’s financial condition as of the date of such statements, and since the date of such statements there has been no
material adverse change in such condition.

 

(b)       This
Guaranty constitutes the legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with the
terms hereof, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the
enforcement of creditors’ rights generally, and by applicable laws (including any applicable common law and equity) and judicial
decisions which may affect the remedies provided herein.

 

(c)       There
are no pending actions or proceedings to which Guarantor is a party, and there are no other pending or threatened actions or proceedings
of which Guarantor has knowledge, before any court, arbitrator or administrative agency, which, either individually or in the aggregate,
would have a Material Adverse Effect. As used herein, “Material Adverse Effect” shall mean (1) a materially adverse
effect on the business, condition (financial or otherwise), operations, performance or properties of Guarantor, or (2) a material
impairment of the ability of Guarantor to perform his obligations under or to remain in compliance with this Guaranty or of Lessor’s
rights and remedies under this Guaranty. Further, Guarantor is not in default under any financial or other material agreement which,
either individually or in the aggregate, would have a Material Adverse Effect.

 

(d)       Guarantor
acknowledges and agrees that Guarantor will enjoy a substantial economic benefit by virtue of the extension of credit by Lessor
to Lessee pursuant to the Lease Documents.

 

5.       Guarantor
covenants and agrees as follows: (a) Guarantor will provide to Lessor on or before March 31 and August 31 of each year, financial
statements of Guarantor as of the immediately preceding December 31 and June 30, respectively, prepared in reasonable detail and
certified as true and correct by Guarantor (Guarantor’s filing of its Form 10-K and 10-Q with the Securities and Exchange
Commission for the required reporting periods shall satisfy Guarantor’s delivery obligations hereunder). (b) Guarantor will
promptly execute and deliver to Lessor such further documents, instruments and assurances and take such further action as Lessor
from time to time may request in order to carry out the intent and purpose of this Guaranty and to establish and protect the rights
and remedies created or intended to be created in favor of Lessor hereunder. (c) Guarantor has been advised by Lessor that the
USA Patriot Act establishes minimum standards of account information to be collected and maintained by Lessor, and that to help
the government fight the funding of terrorism and money laundering activities, Federal law requires all financial institutions
to obtain, verify and record information that identifies each person who opens an account; and specifically, this means that when
Guarantor executes this Guaranty, Lessor may ask for Guarantor’s name and address, date of birth, and other information that
will allow Lessor to identify Guarantor; and that Lessor may also ask to see the driver’s license or other identifying documents
of Guarantor.

 

6.       A
default shall be deemed to have occurred under this Guaranty upon the occurrence of any of the following (each, an
 “Event of Default”): (a) Guarantor shall fail to perform or observe any covenant, condition or agreement to be
performed or observed by him hereunder and such failure shall continue unremedied for a period of ten (10) days after the
earlier of the actual knowledge of Guarantor or written notice thereof to Guarantor by Lessor; or (b) Guarantor shall (1) be
generally not paying his debts as they become due, (2) take action for the purpose of invoking the protection of any
bankruptcy or insolvency law, or any such law is invoked against or with respect to Guarantor or his property, and such
petition filed against Guarantor is not dismissed within sixty (60) days; or (c) there is an anticipatory repudiation of
Guarantor’s obligations pursuant to this Guaranty; or (d) any certificate, statement, representation, warranty or audit
contained herein or furnished with respect to this Guaranty by or on behalf of Guarantor proving to have been false in any
material respect at the time as of which the facts therein set forth were stated or certified, or having omitted any
substantial contingent or unliquidated liability or claim against Guarantor; or (e) a payment or other default by Guarantor
under any loan, lease, guaranty or other financial obligation to Lessor or its affiliates which default entitles the other
party to such obligation to exercise remedies; or (f) a payment or other default by Guarantor under any material loan, lease,
guaranty or other material financial obligation to any third party which default has been declared; (g) Guarantor dies and
his obligations in connection with this Guaranty are not assumed by a person reasonably satisfactory to Lessor; or (h) an
Event of Default shall have occurred under, and as defined in, the Lease.

 

    
3

     

    

 

Upon an Event of
Default hereunder, Lessor may, at its option (without election of remedies), do any one or more of the following, all of which
are hereby authorized by Guarantor:

 

A.       declare
this Guaranty and the other Lease Documents to be in default and thereafter sue for and recover from the Guarantor and/or Lessee
all liquidated damages, accelerated rentals and/or other sums otherwise recoverable from the Guarantor and/or Lessee under this
Guaranty and the other Lease Documents; and/or

 

B.        sue
for and recover all damages then or thereafter incurred by Lessor as a result of such Event of Default; and/or

 

C.        seek
specific performance of Guarantor’s obligations hereunder.

 

In addition, Guarantor
shall be liable for all reasonable attorneys’ fees and other costs and expenses incurred by reason of any Event of Default
or the exercise of Lessor’s remedies hereunder and/or under the Lease Documents, whether or not a lawsuit is filed. No right
or remedy referred to in this Section is intended to be exclusive, but each shall be cumulative, and shall be in addition to any
other remedy referred to above or otherwise available at law or in equity, and may be exercised concurrently or separately from
time to time.

 

The failure of Lessor
to exercise the rights granted hereunder upon any Event of Default shall not constitute a waiver of any such right upon the continuation
or reoccurrence of any such Event of Default.

 

The obligations of
Guarantor hereunder are independent of the obligations of Lessee. A separate action or actions may be brought and prosecuted against
Guarantor (or any thereof) whether an action is brought against Lessee or whether Lessee be joined in any such action or actions.

 

7.       GUARANTOR
AGREES THAT THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF LESSOR AND GUARANTOR HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY,
AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF MICHIGAN, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE. Guarantor agrees that any action or proceeding arising out of or relating to this Guaranty may be commenced in any
state or Federal court in the State of Michigan, and agrees that a summons and complaint commencing an action or proceeding in
any such court shall be properly served and shall confer personal jurisdiction if served personally or by certified mail to him
at his address hereinbelow set forth, or as he may provide in writing from time to time, or as otherwise provided under the laws
of the State of Michigan.

 

8.       GUARANTOR
HEREBY WAIVES TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH GUARANTOR AND LESSOR MAY BE PARTIES ARISING OUT OF OR IN ANY WAY
PERTAINING TO THIS GUARANTY OR THE LEASE DOCUMENTS. THIS WAIVER IS KNOWINGLY, WILLINGLY AND VOLUNTARILY MADE BY GUARANTOR AND GUARANTOR
HEREBY ACKNOWLEDGES THAT NO REPRESENTATIONS OF FACT OR OPINION HAVE BEEN MADE BY ANY INDIVIDUAL TO INDUCE THIS WAIVER OF TRIAL
BY JURY OR IN ANY WAY TO MODIFY OR NULLIFY ITS EFFECT. GUARANTOR FURTHER ACKNOWLEDGES THAT HE HAS BEEN REPRESENTED IN THE SIGNING
OF THIS GUARANTY AND IN THE MAKING OF THIS WAIVER BY INDEPENDENT LEGAL COUNSEL, SELECTED OF HIS OWN FREE WILL, AND THAT HE HAS
HAD THE OPPORTUNITY TO DISCUSS THIS WAIVER WITH COUNSEL.

 

    
4

     

    

 

9.       This
Guaranty shall inure to the benefit of Lessor, its successors and assigns, and shall be binding upon the personal representatives,
heirs and permitted assigns of Guarantor. The obligations of Guarantor hereunder may not be assigned or delegated without the prior
written consent of Lessor.

 

10.     All
notices hereunder shall be in writing, personally delivered, delivered by overnight courier service, sent by certified mail, return
receipt requested, addressed as follows:

 

	If to Guarantor:	SMG Industries, Inc.	 
	 	710 N. Post Oak Road, Suite 315	 
	 	Houston, TX 77024	 
	 	 
	If to Lessor:	UTICA LEASECO, LLC	 
	 	905 South Boulevard East	 
	 	Rochester Hills, Michigan 48307	 

 

or to such other address as such party shall from time to time
designate in writing to the other party; and shall be effective from the date of receipt.

 

11.    
This Guaranty constitutes the entire agreement between the parties with respect to the subject matter hereof and shall not be rescinded,
amended or modified in any manner except by a document in writing executed by both parties. Any provision of this Guaranty which
is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction
shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

12.      This Guaranty
may be executed in counterparts. Photocopies or facsimile transmissions of signatures shall be deemed original signatures and shall
be fully binding on the parties to the same extent as original signatures.

 

 

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT
BLANK]

 

    
5

     

    

 

IN WITNESS WHEREOF, Guarantor has caused
this Master Lease Guaranty to be duly executed as of the 27th day of February, 2020.

 

	 	 
	 	SMG
    INDUSTRIES, INC.
	 	a
    Delaware corporation
	 	 
	 	By:	/s/
    Matthew Flemming
	 	 
	 	Its:	President
	 	 

 

 

STATE
OF ___________                    )

                                                              )            SS.

COUNTY
OF ___________                )

 

The
foregoing instrument was acknowledged before me _____ day of February, 2020, by ___________, the _____________ of SMG Industries,
Inc., a Delaware corporation, on behalf of said corporation.

 

	Notary Public,	 
	Acting in the County of	 
	My commission expires	 
	 	 

    
6

     

    

 

 

 

EQUIPMENT SCHEDULE 5J-0001

 

This Equipment Schedule 5J-0001 is executed
pursuant to that certain Master Lease Agreement dated as of the 27th day of February, 2020 (the "Lease"; which is incorporated
herein by reference). This Equipment Schedule, together with the Lease and all other schedules and riders thereto, shall constitute
one document. To the extent of any conflict or inconsistency between the terms of this Equipment Schedule and the Lease, the terms
of this Equipment Schedule shall prevail. Capitalized terms not defined herein shall have the meanings ascribed to them in the
Lease

 

1.       LEASE
OF EQUIPMENT. Pursuant to Section 5 of the Lease, the Lessor shall lease to Lessee, and the Lessee shall lease from the Lessor,
the Equipment set forth in the schedule attached hereto.

 

FUNDING AMOUNT: $11,950,000.00 

 

2.       TERM.
Upon and after the date of execution hereof, the Equipment shall be subject to the terms and conditions provided herein and in
the Lease.

 

A full term of lease with respect to said
Equipment shall commence on the date hereof and shall extend for forty-eight (48) months after May 27, 2020 (the "Base Lease
Commencement Date").

 

		3.	RENT.

 

		a.	During the period from the date hereof to the Base Lease Commencement Date (the "Interim Term"),
the pro-rated rent for said Equipment shall be as set forth in the schedule below.

 

		b.	From and after the Base Lease Commencement Date, the monthly rent for said Equipment during the
term of this Lease shall be as set forth in the schedule below.

 

	Payment Date	Amount
	3/27/2020	$331,065.02
	4/27/2020	$331,065.02
	5/27/2020	$331,065.02
	6/27/2020	$331,065.02
	7/27/2020	$331,065.02
	8/27/2020	$331,065.02
	9/27/2020	$331,065.02
	10/27/2020	$331,065.02
	11/27/2020	$331,065.02
	12/27/2020	$331,065.02
	1/27/2021	$331,065.02
	2/27/2021	$331,065.02
	3/27/2021	$331,065.02
	4/27/2021	$331,065.02
	5/27/2021	$331,065.02
	6/27/2021	$331,065.02
	7/27/2021	$331,065.02
	8/27/2021	$331,065.02
	9/27/2021	$331,065.02

 

    
7

     

    

 

	10/27/2021	$331,065.02
	11/27/2021	$331,065.02
	12/27/2021	$331,065.02
	1/27/2022	$331,065.02
	2/27/2022	$331,065.02
	3/27/2022	$331,065.02
	4/272022	$331,065.02
	5/27/2022	$331,065.02
	6/27/2022	$331,065.02
	7/27/2022	$331,065.02
	8/272022	$331,065.02
	9/27/2022	$331,065.02
	10/27/2022	$331,065.02
	11/27/2022	$331,065.02
	12/27/2022	$331,065.02
	1/27/2023	$331,065.02
	2/27/2023	$331,065.02
	3/272023	$331,065.02
	4/27/2023	$331,065.02
	5/27/2023	$331,065.02
	6/27/2023	$331,065.02
	7/27/2023	$331,065.02
	8/27/2023	$331,065.02
	9/27/2023	$331,065.02
	10/27/2023	$331,065.02
	11/27/2023	$331,065.02
	12/27/2023	$331,065.02
	1/27/2024	$331,065.02
	2/27/2024	$331,065.02
	3/27/2024	$331,065.02
	4/27/2024	$331,065.02
	5/27/2024	$331,065.02

 

4.       LESSEE'S
CONFIRMATION. Lessee hereby confirms and warrants to Lessor that the Equipment: (a) will be inspected and determined to be in compliance
with all applicable specifications and that the Equipment is hereby accepted for all purposes of the Lease; and (b) is at all times,
including while in progress, a part of the "Equipment" referred to in the Lease and is taken subject to all terms and
conditions therein and herein provided. Lessee hereby represents and warrants to Lessor that, as of the date hereof, there is no
Default or Event of Default under any Schedule or any other Lease Document (as such terms are defined in the Lease).

 

5.       LOCATION
OF EQUIPMENT. The location of, and place where the Equipment will be kept and maintained
once delivered to Lessee, is at the locations listed on Exhibit A to the Schedule of Equipment attached to this Schedule (the
 “Equipment Locations”). Lessee agrees and acknowledges that the Equipment shall not be removed from any of the Equipment
Locations until all payments, including
all fees, charges, monthly payments, and the final payment, have been indefeasibly paid in full to Lessor.

 

    
8

     

    

 

6.       COMMERCIAL
LIABILITY INSURANCE. The amount of commercial liability insurance referenced in Section 11 of the Lease is $2,000,000.00.

 

7.       PERSONAL PROPERTY
TAXES. Lessee agrees that it will (a) list all such Equipment, (b) report all property taxes assessed against such Equipment, and
(c) pay all such taxes when due directly to the appropriate taxing authority until Lessor shall otherwise direct in writing.

 

8.       SCHEDULE
OF STIPULATED LOSS VALUES. Exhibit A contains a Schedule of Stipulated Loss Values which shall be applicable solely to the Equipment
described in this Equipment Schedule.

 

9. NO
SETOFFS OR COUNTERCLAIMS. All payments under the Lease made by or on behalf of Lessee shall be made without setoff or counterclaim
and free and clear of, and without deduction or withholding for or on account of, any federal, state, or local taxes.

 

10.     RIDERS. Rider
No. 1 attached hereto is incorporated in this Equipment Schedule.

 

11.    INSERTION OF INFORMATION.
Lessor is hereby authorized to insert such factually correct information as is necessary to complete this Equipment Schedule, including
(without limitation) the date of execution, and the rental payment amount(s) and factor(s).

 

12.     SECURITY INTEREST.
In order to secure: (A) the prompt payment of the Rent and all of the other amounts from time to time outstanding with respect
hereto and to each Schedule, and the performance and observance by Lessee of all of the provisions hereof and thereof and of all
of the other Lease Documents; and (B) the prompt payment, performance and observance by Lessee of all other obligations of Lessee
to Lessor under any other agreement or instrument, both now in existence and hereafter created (as the same may be renewed, extended
or modified), including (without limitation) any other Master Lease Agreements and all Schedules now or hereafter executed pursuant
thereto; Lessee hereby collaterally assigns, grants, and conveys to Lessor, a first priority security interest in and lien on all
of Lessee’s right, title and interest in and to all of the following (whether now existing or hereafter created, and including
any other collateral described on any rider hereto; collectively, the “Collateral”; all terms used in this sentence
but not otherwise defined in this Schedule or the Lease shall have meanings given in the UCC): (1) the Lessee's Equipment financed
hereunder (to the extent this Lease is construed as a security agreement), Equipment described in any Schedule or otherwise covered
thereby (including all inventory, fixtures or other property comprising the Equipment), together with all related software (embedded
therein or otherwise) and general intangibles, all additions, attachments, accessories and accessions thereto whether or not furnished
or financed by the Lessor; (2) all subleases, chattel paper, accounts, accounts receivable, security deposits, medallions, general
intangibles, deposit accounts, documents, other equipment, instruments, inventory, investment property, letter of credit rights
and any supporting obligations related to any of the foregoing relating thereto, and any and all substitutions, replacements or
exchanges for any such item of Equipment or other collateral, in each such case in which Lessee shall from time to time acquire
an interest; (3) all books and records pertaining to the foregoing; (4) all property of Lessee held by Lessor, including all property
of every description, in the custody of or in transit to Lessor for any purpose, including safekeeping, collection or pledge, for
the account of Lessee or as to which Lessee may have any right or power, including but not limited to cash and (5) to the extent
not otherwise included, all insurance, substitutions, replacements, exchanges, accessions, proceeds and products of the foregoing,
including without limitation, insurance proceeds. The collateral assignment, security interest and lien granted herein shall survive
the termination, cancellation or expiration of the Lease or a particular Schedule until such time as Lessee’s obligations
hereunder, thereunder and under the Lease Documents are fully and indefeasibly discharged. The conveyance contemplated hereby is
solely for the purpose of granting to Lessor a security interest in the Equipment. All Equipment in which an interest is conveyed
hereby shall remain in the possession of Lessee pursuant to the Lease, unless prior written consent is obtained from Lessor permitting
otherwise.

 

13.      FEES. Prior to
or contemporaneously with the payment of the Funding Amount by Lessor to Lessee (unless otherwise stated below), Lessee shall pay
to Lessor (a) any fees contemplated by any confidential fee letter between Lessor and Lessee; (b) a security deposit equal to Three
Hundred Thirty-One Thousand Sixty-Five and 02/100 ($331,065.02) Dollars and (c) the cost of any reasonable attorney fees incurred
by Lessor in connection with the Lease or this Schedule of Equipment, less all amounts previously paid to Lessor.

 

    
9

     

    

 

14.     SURCHARGE.
Basic Rent shall be adjusted periodically based on fluctuations of the Comerica Prime Rate (defined below), as set forth in this
paragraph.  Commencing on July 1, 2020 and on each July 1 and January 1 thereafter (each a “Determinate Date”),
Lessor shall determine the current prime rate publicly announced by Comerica Bank (the “Comerica Prime Rate”). 
If on any such Determination Date, the Comerica Prime Rate has increased .25% in excess of 4.75% (“Surcharge Base Rate”),
Lessor will increase the Basic Rent by $3,310.65 per month for each .25% increase in the Surcharge Base Rate (the “Surcharge
Amount”).  At each Determination Date following the initial application of the Surcharge Amount, Lessor shall thereafter
adjust the Basic Rent in the amount of the Surcharge Amount for each .25% fluctuation in the Surcharge Base Rate.  The Surcharge
Amount addition (or reduction, if applicable), will be added to (or decreased from, if applicable) the monthly Basic Rent due under
the Lease, and will be due and payable with the next regularly scheduled Basic Rent payment under such Schedule and on each payment
date thereafter, until it is recalculated on each January 1 or July 1 thereafter, as applicable.  In the event that there
are no Surcharge Base Rate increases in excess of .25%, the Surcharge will not be applicable.  In no event shall the Basic
Rent payment reduce below the amount set forth in the Schedule.     

 

15.     REPRESENTATIONS
AND WARRANTIES. In addition to the other representations and warranties in this schedule and the other Lease Documents, to induce
Lessor to enter into this Schedule, Lessee represents and warrants as follows:

 

A.     All
of the representations and warranties in the Lease, unless they relate specifically to a particular date, are true and accurate
in all material respects as of the date of this Schedule and are hereby reaffirmed, ratified and remade.

 

B.       Lessee
has disclosed to Lessor all agreements, instruments and organizational or other restrictions to which it is subject, and all other
matters known to it, that, individually or in the aggregate, could reasonably be expected to result in a Material Adverse Effect.
None of the reports, financial statements, certificates or other information furnished by or on behalf of Lessee in connection
with the preparation and negotiation of this Schedule or any other Lease Document, when taken as a whole, contains any misstatement
of a material fact or omits to state any material fact necessary to make the statements herein or therein not misleading.

 

16.    EARLY TERMINATION
OPTION. Provided that no default has occurred and is continuing under the Lease, Lessee will have the following buy-out options
(the “Termination Value”) upon a minimum of thirty (30) days’ prior written notice: (i) during the fifteenth
(15th) month, twenty-fifth (25th) month, and the thirty-seventh (37th) month of the Lease, Lessee shall have an early buy-out option
with respect to all but not less than all of the Equipment upon the payment of (a) the amount listed on Exhibit B attached
hereto for the applicable time period when the buy-out option is to be exercised, plus (b) all other fees, costs and sums due at
such time in accordance with this Lease. In addition to the Termination Value, the Lessee shall pay to Lessor an administrative
charge to be determined by Lessor to cover its time and expenses incurred in connection with the exercise of the option to purchase,
including, but not limited to, reasonable attorney fees and costs. Furthermore, upon the exercise by the Lessee of the option to
purchase any of the Equipment, Lessee shall pay all applicable sales and transfer taxes and all applicable fees payable to any
governmental authority as a result of the transaction contemplated by this Schedule. In such event, the Termination Value shall
be increased by any sales and transfer taxes. If Lessee desires to exercise this option it shall provide Lessor with at least thirty
(30) days prior written notice of such intention. Partial prepayments or payoffs may be permitted at Lessor's sole and absolute
discretion subject to a Termination Value determined by Lessor, provided that such prepayment or payoff amounts shall be applied
to amounts due under the Lease in inverse chronological order of the Lease termination date, commencing first with the End of Term
Buyout Price and then the Termination Value. The Termination Value is presumed to be a reasonable estimate of the amount of damages
sustained by Lessor as a result of the early termination of this Lease and Lessee agrees that the amount is reasonable under the
circumstances currently existing.

 

signatures on following page

 

    
10

     

    

 

 

 

DATE OF EXECUTION: the 27th day of February, 2020

 

UTICA LEASECO, LLC

Lessor

 

	By:	/s/ Ryann Whitmore	 
	Name: 	Ryann Whitmore	 
	Title:	Assistant Vice President	 

 

5J TRUCKING

Lessee

 

	By:	/s/ Matthew Flemming	 
	Name: 	Matthew Flemming	 
	Title:	CEO	 

 

5J OILFIELD SERVICES, LLC

Lessee

 

	By:	/s/ Matthew Flemming	 
	Name: 	Matthew Flemming	 
	Title:	CEO	 

 

    11

     

    

 

Exhibit A

 

	Loss Payment Date	Percentage Factor	 
	3/27/2020	110.0000%	 
	4/27/2020	110.0000%	 
	5/27/2020	110.0000%	 
	6/27/2020	100.0000%	 
	7/27/2020	98.4587%	 
	8/27/2020	96.8986%	 
	9/27/2020	95.3192%	 
	10/27/2020	93.7204%	 
	11/27/2020	92.1020%	 
	12/27/2020	90.4636%	 
	1/27/2021	88.8051%	 
	2/27/2021	87.1263%	 
	3/27/2021	85.4268%	 
	4/27/2021	83.7064%	 
	5/27/2021	81.9649%	 
	6/27/2021	80.2020%	 
	7/27/2021	78.4174%	 
	8/27/2021	76.6108%	 
	9/27/2021	74.7821%	 
	10/27/2021	72.9309%	 
	11/27/2021	71.0569%	 
	12/27/2021	69.1599%	 
	1/27/2022	67.2395%	 
	2/27/2022	65.2956%	 
	3/27/2022	63.3278%	 
	4/272022	61.3358%	 
	5/27/2022	59.3193%	 
	6/27/2022	57.2780%	 
	7/27/2022	55.2116%	 
	8/272022	53.1198%	 
	9/27/2022	51.0023%	 
	10/27/2022	48.8588%	 
	11/27/2022	46.6890%	 
	12/27/2022	44.4924%	 
	1/27/2023	42.2689%	 
	2/27/2023	40.0180%	 
	3/272023	37.7395%	 
	4/27/2023	35.4330%	 
	5/27/2023	33.0981%	 
	6/27/2023	30.7345%	 
	7/27/2023	28.3418%	 
	8/27/2023	25.9198%	 
	9/27/2023	23.4680%	 
	10/27/2023	20.9860%	 
	11/27/2023	18.4736%	 
	12/27/2023	15.9302%	 
	1/27/2024	13.3556%	 
	2/27/2024	10.7493%	 
	3/27/2024	8.1110%	 
	4/27/2024	5.4403%	 
	5/27/2024	2.7368%	 

 

 

 

    12

     

    

 

Exhibit B

 

	Month of Lease Term	 	Payment Date	 	Buyout After Lease
 Payment ($)	 
	15	 	8/27/2021	 	$	10,818,753.11	 
	25	 	6/27/2022	 	$	8,175,726.45	 
	37	 	6/27/2023	 	$	4,837,403.36	 

 

    1

     

    

 

 

 

RIDER NO. 1 TO EQUIPMENT SCHEDULE 5J-0001

 

 

To and part of Equipment
Schedule 5J-0001 dated as of the 27th day of February, 2020 (the “Schedule”) executed pursuant to that certain Master
Lease Agreement dated as of the 27th day of February, 2020 (the "Lease"), each between UTICA LEASECO, LLC, its successors
and assigns ("Lessor"), 5J TRUCKING, a Texas limited liability company, d/b/a 5J and 5J Trucking, LLC (“5J Trucking”),
its successors and permitted assigns, and 5J OILFIELD SERVICES, LLC, a Texas limited liability company (“5J Oil”),
its successors and permitted assigns, (hereafter referred to both individually, and collectively (if more than one), as "Lessee").

 

END OF TERM BUYOUT PRICE. Upon the expiration
of the term of the Schedule, Lessee promptly shall pay to Lessor without notice or demand therefor and together with all other
amounts then due and payable under the Lease, in cash, an End of Term Buyout Price equal to $831,880.00; provided that the End
of Term Buyout Price will be reduced by any amounts received by Utica from the effective date of the Lease through the receipt
of the End of Term Buyout Price, for Equipment that was sold during the term of the Lease (but only to the extent that the sale
was consented to in writing by Utica during the term of the Lease). Upon receipt by Lessor of the End of Term Buyout Price, Lessor
shall release its interest in the Equipment covered by this Schedule.

 

As used herein, “Equipment”
shall mean the Equipment described in this Schedule.

 

UTICA LEASECO, LLC

Lessor

 

	By:	/s/ Ryann Whitmore	 
	Name:	Ryann Whitmore	 
	Title:	Assistant Vice President	 

 

5J TRUCKING, 

Lessee

 

	By:	/s/ Matthew Flemming	 
	Name:	Matthew Flemming	  
	Title:	CEO 	 

 

5J OILFIELD SERVICES, LLC

Lessee

 

	By:	/s/ Matthew Flemming	 
	Name:	Matthew Flemming	 
	Title:	CEO	 

 

    1

     

    

 

 

 

SCHEDULE OF EQUIPMENT

 

Lessee:               5J TRUCKING and 5J OILFIELD SERVICES, LLC

 

Attached to Equipment Schedule
No. 5J-0001

 

Location of Equipment:

 

		1.	4090 N US Hwy 79, Palestine, TX 75801

 

		2.	2451 West Murphy Street, Odessa, TX 79763

 

		3.	101 Rancho Grande, Floresville, TX 78114

 

		4.	In transit on US Interstate and state highway systems for the limited scope of performing services for Lessee’s customers
in the ordinary course of business

 

SEE EXHIBIT A ATTACHED

 

    2Exhibit 10.14

 

REVOLVING ACCOUNTS RECEIVABLE ASSIGNMENT
AND TERM LOAN 

 

FINANCING AND SECURITY AGREEMENT

 

THIS REVOLVING ACCOUNTS
RECEIVABLE ASSIGNMENT AND TERM LOAN FINANCING AND SECURITY AGREEMENT (the “Agreement”) is made as of February
27, 2020  by and between 5J Oil Field Services, LLC and 5J
Trucking, LLC whose address are 710 N. Post Oak Rd., Suite 315, Houston, Texas 77024, together with SMG
Industries, Inc. whose address is 710 N. Post Oak Rd., Suite 315, Houston, Texas 77024 and each other Person
who from time to time may become a Party hereto or an affiliate (individually and collectively herein “Client” or the
 “Company”, and Amerisource Funding, Inc., a Texas Corporation
(together with its successors and assigns, “Amerisource”), as lender (each a “Party” and, collectively
herein, the “Parties”).

 

RECITALS

 

WHEREAS, the Client
has asked Amerisource to make advances to the Client against clients Accounts Receivable in an aggregate principal amount outstanding
at any time not to exceed Ten Million Dollars ($10,000,000.00)
(the "Maximum Account Limit"); and

 

WHEREAS, the Client
has asked Amerisource to make advances to the Client under an equipment term loan facility in an aggregate principal amount outstanding
at any time not to exceed One Million Four Hundred and SIXTY-FOUR Thousand, One
Hundred and Fifty-Three Dollars ($1,464,153.00) (the "Maximum Equipment Term Limit"); and

 

WHEREAS, the Client
has asked Amerisource to make advances to the Client under a bridge term loan facility in an aggregate principal amount outstanding
at any time not to exceed Ten Percent (10%) of the net availability under the Revolving Credit Facility (the "Maximum Bridge
Term Limit"); and

 

WHEREAS, Amerisource
is willing, on the terms and subject to the conditions set forth in this Agreement and the other Credit Documents, to make advances
to the Client;

 

NOW, THEREFORE, in
consideration of the foregoing recitals, and for other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties agree as follows:

 

Article I.                      
DEFINITIONS

 

1. Definitions.
The following terms used herein shall have the following meaning. All capitalized terms not herein defined shall have the meaning
set forth in the Uniform Commercial Code:

 

1.1. “Advance
Rate” - Up to eighty five percent (85%) of Eligible Accounts Receivable

 

1.2. “Availability”
- A calculation on a Daily Availability Report which reflects the total amount of Client’s Reserve Account which is available
for disbursement to Client at a given point in time; equal to the Face Amount of all Purchased Accounts, plus funds available against
Client’s Inventory (if any), less the Required Reserve Amount, as more fully illustrated in Exhibit “A”.

 

1.3. “Closed”
- A Purchased Account is closed upon the first to occur of: (a) receipt of full payment by Amerisource, or (b) the unpaid Face
Amount has been charged to the Reserve Account by Amerisource pursuant to the terms hereof.

 

1.4. “Credit
Documents” – This Agreement, the term loan Promissory Notes, any or all related note(s), the UCC-1 or any other
form of security agreement, the Guaranty Agreement, and each and every other document or instrument executed or delivered, or to
be executed or delivered, by the Client and/or Guarantor in connection herewith, in each case as amended and/or restated from time
to time.

 

1.5. “Daily
Availability Report” - A report, a sample of which appears in Exhibit “A”, prepared by Amerisource from time
to time reflecting a calculation of the portion of Client’s Reserve Account which is available for disbursement at a given
point in time.

 

1.6. “Face
Amount” - The face amount due on an Account at the time of purchase of such Account.

 

1.7. “Guarantor”
 – Matthew Flemming, whether one or more.

 

1.8. “Guaranty
Agreement” – Any guaranty agreement (whether one or more) executed by Guarantor in connection with the Obligations.

 

1.9. “Invoice”
- The document that evidences or is intended to evidence an Account. Where the context so requires, reference to an Invoice shall
be deemed to refer to the Account to which it relates.

 

1.10. “Invoice
Transmittal” - A form wherein Client lists such of its Accounts as it requests that Amerisource purchase under the terms
of this Agreement. For Accounts submitted by Client electronically to Amerisource, an Electronic Transfer of Sales document may
serve as an Invoice Transmittal.

 

1.11. “Maximum
Account Limit” - Ten Million Dollars ($10,000,000). The Maximum Account Limit may be reviewed and amended by Amerisource
from time to time as necessary to accommodate Client’s growth in working capital needs.

 

1.12. “Maximum
Bridge Term Limit” – An aggregate principal amount outstanding at any time not to exceed Ten Percent (10%) of the
net availability under the Revolving Credit Facility The maximum amount made available under an optional term loan facility made
available to Client within the first 12 months of the Term.

 

    1

     

    

 

1.13. “Maximum
Equipment Term Limit” - One Million Four Hundred and Sixty-Four Thousand One Hundred and Fifty-Three Dollars ($1,464,153).
The maximum amount made available under an equipment term loan facility made available to Client at execution of this Agreement
in order to refinance the existing Citizens Bank Debt and/or subsequent equipment lender debt. The Maximum Equipment Term Limit
may be reviewed and amended by Amerisource from time to time as necessary to accommodate Client’s growth in working capital
needs.

 

1.14. “Obligations”
- Any and all present or future obligations, liabilities or indebtedness of Client to Amerisource arising hereunder or otherwise,
of any and every kind and nature, however created, arising or evidenced and howsoever owned, held or acquired, direct or indirect
and whether arising or existing under written or oral agreement or by operation of law, and including all future advances made
by Amerisource for the potential protection of Amerisource’s rights and interest in the Collateral, to pay or discharge existing
or potential liens, levies or other claims against the Collateral, and whether arising before, during or after the commencement
of any Bankruptcy Case in which Client is a Debtor, and all costs and expenses, including without limitation reasonable attorney’s
fees, incurred by Amerisource in connection with or arising out of the administration, protection, enforcement or collection of
the Obligations or disposition, liquidation or realization of the Collateral, and expenses incurred in answering general legal
issues involving Client

 

1.15. “Purchased
Accounts” - Accounts purchased by Amerisource from Client hereunder which have not been Closed.

 

1.16. “Repurchased”
- An Account has been repurchased when Client has paid to Amerisource the then unpaid Face Amount.

 

1.17. “Required
Reserve Amount” - The amount required to be held in Client’s Reserve Account to ensure Client’s performance
with the provisions hereof, including but not limited to, anticipated amounts to be paid monthly on the Equipment Term Facility
and the Bridge Term Facility.

 

1.18. “Reserve
Account” - A bookkeeping account on the books of Amerisource where the Face Amount of all Purchased Accounts is initially
credited, a portion of which is maintained by Amerisource to ensure Client's performance with the provisions hereof.

 

1.19. “Reserve
Shortfall” - The amount by which the Reserve Account is less than the Required Reserve Amount.

 

2. Sale; Purchase
Price; Reserve.

 

2.1. Assignment
and Sale.

 

2.1.1. Client shall
submit to Amerisource each day a sales ledger in electronic format, which shall be a complete and accurate detailed listing of
all sales completed by the Client for that given date. All Invoices listed on each daily sales ledger shall represent Invoices
billed in accordance with Generally Accepted Accounting Principles (“GAAP”) for goods delivered or services rendered
and completed by Client for such day. Though an Invoice Transmittal may be included with each daily sales ledger, Client’s
electronic submission of a sales ledger to Amerisource shall be effective as an Invoice Transmittal and shall automatically constitute
the assignment and sale to Amerisource of any and all Invoices and Accounts included on such sales ledger, and all such Invoices
and Accounts shall immediately become Purchased Accounts. Client shall also submit to Amerisource such reporting on its Inventory
as may be agreed upon by Client and Amerisource from time to time.

 

2.1.2. Each Invoice
Transmittal shall be accompanied by such documentation supporting and evidencing the Accounts listed thereon as Amerisource shall
from time to time request.

 

2.1.3. Amerisource’s
initial payment of the Face Amount purchase price shall be applied and credited to Client’s Reserve Account.

 

2.2. Daily Availability
Report; Reserve Account.

 

2.2.1. Client’s
withdrawals, advances and disbursements from the Reserve Account shall be governed by a calculation of Availability, as determined
by a Daily Availability Report to be prepared or modified by Amerisource from time to time and in its sole discretion, a sample
of which appears in Exhibit “A”.

 

2.2.2. Each Daily
Availability Report shall set forth a calculation of the amount available for withdrawal by Client, as well as the amounts which
must be held in the Client’s Reserve Account as the Required Reserve Amount. Amounts may be held in the Reserve Account as
Required Reserve Amount to ensure Client’s performance with the provisions hereof, as well as to secure Obligations and the
Repurchase or anticipated Repurchase of the following ineligible or impaired Accounts: (a) Accounts, the payment of which has been
disputed by the Account Debtor obligated thereon, Amerisource being under no obligation to determine the bona fides of such dispute,
(b) any Account for which Client has breached its obligation under Section 14 herein, (c) any Account owing from an Account Debtor
which in Amerisource’s reasonable credit judgment has become insolvent, (d) any Accounts owing from an Account Debtor in
excess of the credit limit established by Amerisource for such Account Debtor, (e) all or any Purchased Accounts upon the occurrence
of an Event of Default or upon the termination date of this Agreement, (f) Accounts over ninety (90) days from original invoice
date, (g) Accounts owing by an Account Debtor in excess of 15%  of Client’s total eligible Purchased Accounts outstanding,
(h) Accounts owing by entities related to Client by common ownership or control, (i) all Accounts owing by a given Account Debtor
if at least 15%  of such Account Debtor’s outstanding Accounts are deemed ineligible or impaired by Amerisource, (j)
Accounts owing by Account Debtors domiciled outside of the United States of America or for which Client has accepted deposits or
billed in advance, and (k) other Accounts or amounts which Amerisource determines from time to time in its sole credit or business
judgment. Without regard to the provision in Section 2.2.2 (f), Amerisource shall provide for eligibility of Patterson-UTI Accounts
Receivable after Notice of Assignment has been confirmed by the Patterson-UTI Account Debtor and verification satisfactory to Amerisource
has been confirmed.

 

2.2.3.
Amerisource may require that Client Repurchase, by payment of the then unpaid Face Amount thereof or, at Amerisource’s
option, by Amerisource’s adjustment to the Reserve Account any of the Accounts described in Section 2.2.2 above which
are deemed uncollectible in Amerisource’s sole credit or business judgment. Any such Repurchase by Client shall not
constitute reassignment of such Account.

 

    2

     

    

 

2.2.4. Client shall
pay to Amerisource on demand the amount of any Reserve Shortfall.

 

2.2.5. Amerisource
may charge the Reserve Account with any Obligation. The Reserve Account, or any portion thereof, may also be held to secure the
Obligations.

 

2.2.6. Amerisource
may pay any amounts due Client hereunder by a credit to the Reserve Account.

 

2.2.7. Upon termination
of this Agreement, Amerisource may retain the Reserve Account (i) sufficient to cover any Obligations that were either known or
unknown to Amerisource at the time of termination, and (ii) unless and until Client has executed and delivered to Amerisource a
general indemnity and mutual release in a form acceptable to Amerisource.

 

3. Authorization
for Purchases. Subject to the terms and conditions of this Agreement, Amerisource is authorized to purchase Accounts and/or
approve and release disbursement requests upon telephonic, facsimile or other instructions received from anyone purporting to be
an officer, employee or representative of Client.

 

4. Revolving
Accounts Receivable Interest Rate. Client shall pay to Amerisource on a monthly basis an interest rate equal to the
prime rate plus four and one-half percent (4.500%) per annum, to be calculated and charged monthly by Amerisource based on
the average outstanding balance of all funds employed for all Accounts Receivable Obligations. The prime rate of interest shall
be determined as published and updated from time to time in the Wall Street Journal.

 

5. Collateral
Management Fee.  Client shall pay to Amerisource a Collateral Management Fee of seventy-five hundredths percent (0.750%),
of the Maximum Account Limit to be charged annually in advance. This fee is reduced from 1.0% contingent upon Client funding an
additional credit facility with Amerisource within 6 months of initial funding of this Client facility. In the event an additional
facility is not funded within the 6-month period, the CMF will be adjusted to 1.0% and the 0.25% will be assessed in arrears.

 

6. Non-Usage
Fee.  A fee of thirty-five hundredths percent (0.350%) will be assessed quarterly in arrears based on the shortfall
between Client’s average daily revolving loan balance outstanding and the Maximum Account Limit.

 

7. Commitment
Fee. Client shall pay to Amerisource an up-front fee equal to 1.000% of the Maximum Account Limit. This fee is fully earned
at the time of Amerisource approval and commitment to Client; however, as an accommodation to Client, the fee will be deducted
from the initial funding proceeds (the “Commitment Fee”).

 

8. Over-Advances.
 As inducement to Client to maintain the Reserve Account at required levels to secure the Repurchase or anticipated Repurchase
of ineligible or impaired Accounts, Client agrees to pay Amerisource on demand a per diem penalty of 0.2 percent (0.2%) of the
amount of any Reserve Shortfall.

 

9. Equipment
Term Loan Facility. Contemporaneous with the execution of this Agreement, Client shall execute the attached Commercial
Promissory Note provided in Exhibit ‘B’ (the “Equipment Term Note”) and incorporated herein for all purposes
that shall provide for a term loan facility in the amount of the Maximum Equipment Term Limit, under the following terms and conditions:

 

9.1. Term:
Three years, fully amortizing over 36 months with equal principal and interest payments;

 

9.2. Interest
Rate: Client shall pay to Amerisource an interest rate equal to the prime rate plus five and one-quarter percent (5.250%)
per annum, to be calculated and charged monthly with equal principal and interest payments;

 

9.3. Origination
Fee: Client shall pay to Amerisource an up-front fee equal to 1.500% of the Maximum Equipment Term Limit. This fee is fully
earned at the time of Amerisource approval and commitment to Client; however, as an accommodation to Client, the fee will be deducted
from the initial funding proceeds (the “Origination Fee”).

 

9.4. Purchase
Money Security Interest: In addition to the Security Interest provided for in Section 10, Client shall specifically provide,
represent and warrant that Client shall provide a first priority lien and a Purchase Money Security Interest in the Equipment described
on Exhibit ‘B’, on the filing of a UCC 1 Financing Statement and Client’s grant of such lien to Amerisource does
not constitute a fraudulent conveyance under any applicable law. Any landlord’s lien and other lien in favor of Client shall
be subordinated pursuant to a separate subordination agreement reasonably acceptable to Amerisource and executed contemporaneously
herewith (if any) and, except as otherwise disclosed by Client to Amerisource prior to the date hereof, Client is the owner of
all right, title, and interest in the Equipment described on Exhibit ‘B’ free and clear of all liens, encumbrances,
and security interests, except the security interest created by this Agreement and statutory and contractual landlord’s liens.

 

10. Optional Bridge Term Loan Facility.
Upon the execution of this Agreement and for a period of 12 months from the initial funding, Amerisource shall make available
at Client’s option, a Bridge Term Loan Facility under the following terms and conditions:

 

10.1. Bridge Term Amount: Client
shall provide Amerisource written notice of its election to enter into the Bridge term Loan Facility and the amount of such term
loan, said amount not to exceed the Maximum Bridge Term Limit;

 

    3

     

    

 

10.2. Term:
6 months, fully amortizing with equal principal and interest payments beginning at initial funding for a period of 26 weeks;

 

10.3. Bridge
Facility Fee: A flat fee of 5.00% of the Bridge Term Amount shall be collected at initial funding of the Bridge Term Amount.

 

10.4. Security: Client shall enter
into such additional promissory notes or other Credit Documents as Amerisource shall require to document the amount of the Bridge
Term Loan Facility and the requirements to for repayment

 

11. Security
Interest.

 

11.1. As collateral
securing the Obligations, Client grants and assigns to Amerisource a continuing security interest in and to all of its now owned
and hereafter acquired personal property and fixtures, and all direct and indirect proceeds thereof (including proceeds of proceeds),
including without limitation Accounts, Chattel Paper, Goods (including Inventory and Equipment), Instruments, Investment Property,
Documents, General Intangibles, monies, deposit accounts, claims and credit balances, and all Intellectual Property (including
Trademarks, Patents and Copyrights, Licenses, Brands), Goodwill, tax refunds, Judgments, claims under Chapter 5 of the Bankruptcy
Code, and all other property (real, personal, tangible, intangible, or any combination thereof (the “Collateral”).

 

11.2. Notwithstanding
the creation of the above security interest, the relationship of the Parties as to Client’s Accounts shall be that of purchaser
and seller of accounts, and not that of lender and Client.

 

12. Maintenance
of Accounts, Authorization and Dominion of Funds to Amerisource.

 

12.1  Amerisource
requires dominion of funds, and Client shall maintain its primary operating account with [______________________] Bank, or another
institution approved by Amerisource, into which the proceeds of all advances will be disbursed. Client shall direct all payments
from its Account Debtors to a P.O. address controlled or managed by Amerisource (“Lockbox”) or to a bank account controlled
by Amerisource or governed by a Deposit Account Control Agreement in favor of Amerisource (“Blocked Account”). Amerisource
shall send notice of assignment letters to all Account Debtors on Client’s letterhead affirming these payment instructions.
Payments received by Amerisource, whether such payments are received at a Lockbox, a Blocked Account, forwarded to Amerisource
by Client, or otherwise, shall be applied to reduce the Client’s outstanding Obligations to Amerisource with a maximum of
three days for check clearance. Client shall provide to Amerisource viewing rights to all bank accounts maintained by Client. Any
and all charges and expenses relating to an Amerisource Lockbox shall be for Amerisource’s account. Any and all charges and
expenses relating to a Blocked Account shall be for Client’s account.

 

12.2  Client
hereby irrevocably authorizes Amerisource at Client's expense, to exercise at any time any of the following powers until all of
the Obligations have been paid in full: (a) receive, take, endorse, assign, deliver, accept and deposit, in the name of Amerisource
or Client, any and all cash, checks, commercial paper, drafts, remittances and other instruments and documents relating to the
Collateral or the proceeds thereof, (b) take or bring, in the name of Amerisource or Client, all steps, actions, suits or proceedings
deemed by Amerisource necessary or desirable to effect collection of or other realization upon the Accounts and other Collateral,
(c) after an Event of Default, that has not been cured within any applicable cure period, change the address for delivery of mail
to Client and to receive and open mail addressed to Client, (d) after an Event of Default, extend the time of payment of, compromise
or settle for cash, credit, return of merchandise, and upon any terms or conditions, any and all Accounts or other Collateral which
includes a monetary obligation and discharge or release any account debtor or other obligor (including filing of any public record
releasing any lien or security interest granted to Client by such account debtor), without affecting any of the Obligations, (e)
pay any sums necessary to discharge any lien, security interest or encumbrance which is senior to or impairs Amerisource's security
interest in the Collateral, which sums shall be included as Obligations hereunder, and in connection with which sums the Delinquency
Charge shall accrue and shall be due and payable, (f) in order to complete funding transfers or disbursements, or to satisfy any
of the Obligations, initiate electronic debit or credit entries through the Automated Clearinghouse system to any deposit account
maintained by Client wherever located, (g) file in the name of Client or Amerisource, or both, mechanic’s or materialman’s
liens or related notices, or claims under any payment bond, in connection with goods or services sold by Client in connection with
the improvement of realty, (h) notify any Account Debtor obligated with respect to any Account that the underlying Account has
been assigned to Amerisource by Client and that payment thereof is to be made to the order of and paid directly and solely to Amerisource,
and (i) communicate directly with Client’s Account Debtors to verify the amount and validity of any Account created by Client.

 

13. Covenants
By Client.

 

13.1. Client shall
deliver to Amerisource such documentation as may be requested by Amerisource from time to time, including but not limited to: (a)
monthly internally-prepared financial statements, accounts receivable aging and accounts payable aging and detailed inventory reports,
to be delivered to Amerisource within 30 days of month-end for the six months after the date hereof, and within 21 days of month-end
thereafter; (b) quarterly 941 payroll tax filings and proof of payment; (c) annual CPA-prepared (reviewed or audited) financial
statements, federal 1120 tax return, and updated personal or corporate financial statements for each personal or corporate guarantor
respectively, to be delivered to Amerisource within 110 days of year-end; and (d) any other report or documentation reasonably
requested by Amerisource.

 

13.2. Client shall
direct all payments for Client’s Accounts to Amerisource’s                               via
a Notice of Assignment to be sent to all of Client’s Account Debtors on Client’s letterhead. Client shall imprint
this P.O. Box address as the sole remittance address on each and every Invoice and communication to all of its Account Debtors,
without exception. Payments received by Amerisource shall be applied against the corresponding open Invoices purchased and ledgered
by Amerisource and shall be applied to reduce the Client’s outstanding Obligations to Amerisource with a maximum of three
days for check clearance.

 

    4

     

    

 

13.3. Any and all checks
or other payments received by Client from its Account Debtors or obligors shall be held in trust for Amerisource and shall not
constitute the property of Client, and Client shall deliver such instruments in kind to Amerisource within two banking days following
the date of receipt by Client. Client shall pay to Amerisource fifteen percent (15%) of the amount of any payment received by Client
and not delivered in kind to Amerisource within two banking days following the date of receipt by Client.

 

13.4. Client shall
notify Amerisource promptly of and, if requested by Amerisource, will settle all disputes concerning any Purchased Account, at
Client's sole cost and expense.

 

13.5. After written
notice by Amerisource to Client, and automatically, without notice, after an Event of Default that has not been cured within any
applicable cure period, Client shall not, without the prior written consent of Amerisource in each instance, (a) grant any extension
of time for payment of any of the Accounts, (b) compromise or settle any of the Accounts for less than the full amount thereof,
(c) release in whole or in part any Account Debtor, or (d) grant any credits, discounts, allowances, deductions, return authorizations
or the like with respect to any of the Accounts.

 

13.6. From time to
time as requested by Amerisource, at the sole expense of Client, Amerisource or its designees shall have access, during reasonable
business hours if prior to an Event of Default and at any time if after an Event of Default that has not been cured within any
applicable cure period, to all premises where Collateral is located for the purposes of inspecting (and removing, if after the
occurrence of an Event of Default that has not been cured within any applicable cure period) any of the Collateral, including Client's
books and records, and Client shall permit Amerisource or its designees to make copies of such books and records or extracts therefrom
as Amerisource may request.

 

13.7. Client shall
reimburse Amerisource for any reasonable out-of-pocket expenses directly incurred by Amerisource in the administration of this
Agreement, including fees for periodic field exams, lien searches or other expenses.

 

13.8. Client shall
pay when due all payroll and other taxes, and shall provide proof thereof to Amerisource in such form as Amerisource shall reasonably
require.

 

13.9. Client shall
not create, incur, assume or permit to exist any lien or security interest upon or with respect to any Collateral now owned or
hereafter acquired by Client, other than with respect to financing secured by Client from or through Utica Leaseco LLC, Daimler-Benz,
Volvo Financial, TBK Bank, Scott Equipment, James E. Frye, or any capital equipment financing secured by such equipment.

 

13.10. Client shall
advise Amerisource in writing if it reschedules or extends the due date of any amounts owing from its account debtors.

 

13.11. Client shall
indemnify Amerisource from any loss arising out of the assertion of any claim that any payment received by Amerisource from or
for the account of an Account Debtor is avoidable under the Bankruptcy Code or any other debtor relief statute (“Avoidance
Claim”). Client shall notify Amerisource within two business days of it becoming aware of the assertion of any Avoidance
Claim. The provisions of this Section 13.11 shall survive termination of this Agreement.

 

14. Representation
and Warranty. Client represents and warrants that:

 

14.1. Client is fully
authorized to enter into this Agreement and to perform hereunder.

 

14.2. This Agreement
constitutes its legal, valid and binding obligation.

 

14.3. Client is solvent
and in good standing in the State of its organization.

 

14.4. The Purchased
Accounts are and will remain:

 

14.4.1. Bona fide
existing obligations created by the sale and delivery of goods or the rendition of services in the ordinary course of Client’s
business.

 

14.4.2. Unconditionally
owed and will be paid to Amerisource without defenses, disputes, offsets, counterclaims, or rights of return or cancellation.

 

14.4.3. Not sales
to any entity which is affiliated with Client or in any way not an “arms length” transaction.

 

14.5. Client has not
rescheduled or extended the due date of any amounts owing by its account debtors during the past twelve (12) months from the date
hereof.

 

14.6. Client has not
received notice nor does Client have knowledge of actual or imminent bankruptcy, insolvency, or material impairment of the financial
condition of any account debtor.

 

15. Default.

 

15.1. Events of
Default. Any of the following events will constitute an Event of Default hereunder: (a) Client defaults in the payment of any
Obligations or in the performance of any covenant herein or provision hereof or of any other agreement now or hereafter entered
into with Amerisource, or any warranty or representation contained herein proves to be false in any way, howsoever minor, (b) Client
or any guarantor of all or any part of the Obligations becomes subject to any debtor-relief proceedings, (c) any guarantor fails
to perform or observe any of such guarantor's obligations to Amerisource or shall notify Amerisource of its intention to rescind,
modify, terminate or revoke any guaranty of the Obligations, or any such guaranty shall cease to be in full force and effect for
any reason whatever, (d) Amerisource for any reason, in good faith, deems itself insecure with respect to the prospect of repayment
or performance of all or any part of the Obligations.

 

    5

     

    

 

15.2. Notice
and Cure Period. Amerisource shall promptly notify Client of the occurrence of any Event of Default. In regards to an
Event of Default concerning Section 9 (the Equipment Term Loan Facility) or Section 10 (the Optional Bridge Term Loan
Facility) Client shall have ten (10) days to cure after receipt of notice thereof. In regards to any other Event of Default,
Client waives any requirement that Amerisource inform Client by affirmative act or otherwise of any Event of Default
hereunder. Further, Amerisource’s failure to charge or accrue interest or fees at any “Penalty”,
 “Default”, or “Past Due” rate shall not be deemed a waiver by Amerisource of its claim thereto.

 

15.3. Effect of
Default. Upon the occurrence of any Event of Default that has not been cured within any applicable cure period, in addition
to any rights Amerisource has under this Agreement or applicable law, Amerisource may immediately terminate this Agreement without
notice, at which time all Obligations shall immediately become due and payable without notice.

 

16. Account
Stated. Amerisource shall render to Client from time to time a statement setting forth the transactions arising hereunder.
Each statement shall be considered correct and binding upon Client as an account stated, except to the extent that Amerisource
receives, within sixty (60) days after the mailing of such statement, written notice from Client of any specific exceptions by
Client to that statement, and then it shall be binding against Client as to any items to which it has not objected.

 

17. Waiver.
 No failure to exercise and no delay in exercising any right, power, or remedy hereunder shall impair any right, power, or
remedy which Amerisource may have, nor shall any such delay be construed to be a waiver of any of such rights, powers, or remedies,
or any acquiescence in any breach or default hereunder; nor shall any waiver by Amerisource of any breach or default by Client
hereunder be deemed a waiver of any default or breach subsequently occurring. All rights and remedies granted to Amerisource hereunder
shall remain in full force and effect notwithstanding any single or partial exercise of, or any discontinuance of action begun
to enforce, any such right or remedy. The rights and remedies specified herein are cumulative and not exclusive of each other or
of any rights or remedies that Amerisource would otherwise have. Any waiver, permit, consent or approval by Amerisource of any
breach or default hereunder must be in writing and shall be effective only to the extent set forth in such writing and only as
to that specific instance.

 

18. Termination.
This term of this Agreement shall expire thirty-six (36) months  from the date of initial funding (the “Maturity
Date”). Client may terminate the Agreement by giving Amerisource sixty (60) days  written notice of termination prior
to each Maturity Date. Otherwise, the Maturity Date shall be automatically extended for an additional twelve (12) months 
from the most recent Maturity Date. Upon termination, Client shall pay the Obligations to Amerisource, including, but not limited
to, all Obligations under the Equipment Term Facility and the Bridge Term Facility. In the event of termination of the Agreement
prior to Maturity Date, an Early Termination Fee equal to two percent (2.00%)  of the Maximum Account Limit shall apply
if there are more than twelve months remaining until Maturity Date at the time of termination; otherwise an Early Termination Fee
equal to one percent (1.00%)  of the Maximum Account Limit shall apply. Upon termination of this Agreement, Amerisource
may retain amounts (i) sufficient to cover any Obligations that were either known or unknown to Amerisource at the time of termination,
and (ii) until Client has executed and delivered to Amerisource a general indemnity and mutual release in a form acceptable to
Amerisource.

 

19. Amendment.
Neither this Agreement nor any provisions hereof may be changed, waived, discharged or terminated, nor may any consent to the departure
from the terms hereof be given orally (even if supported by new consideration), but only by an instrument in writing signed by
all parties to this Agreement. Any waiver or consent so given shall be effective only in the specific instance and for the specific
purpose for which given.

 

20. Lien Termination.
In recognition of Amerisource's right to have its legal fees and other expenses incurred in connection with this Agreement secured
by the Collateral, notwithstanding satisfaction in full of all other Obligations by Client, Amerisource shall not be required to
record any terminations or satisfactions of any of Amerisource's liens or security interests on the Collateral unless and until
Client has executed and delivered to Amerisource a general indemnity and mutual release in a form acceptable to Amerisource. Client
understands that this provision constitutes a waiver of its rights under §9-513 of the UCC.

 

21. Conflict.
Unless otherwise expressly stated in any other agreement between Amerisource and Client, if a conflict exists between the provisions
of this Agreement and the provisions of such other agreement, the provisions of this Agreement shall control.

 

22. Severability.
In the event any one or more of the provisions contained in this Agreement is held to be invalid, illegal or unenforceable in any
respect, then such provision shall be ineffective only to the extent of such prohibition or invalidity, and the validity, legality
and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby.

 

23. Relationship
of Parties. The relationship of the Parties hereto shall be that of seller and purchaser of Accounts, and Amerisource shall
not be a fiduciary of the Client, although Client may be a fiduciary of Amerisource. The Parties have, for the purposes of Chapter
306 of the Texas Finance Code, characterized the sale of accounts receivable pursuant to this Agreement as a purchase and sale
transaction, and not a loan or other transaction for the use, forbearance or detention of money.

 

    6

     

    

 

24. Legal Fees.
Client agrees to reimburse Amerisource on demand for the actual amount of all costs and expenses, including reasonable attorneys'
fees and other legal fees, which Amerisource has incurred or may incur in: (a) negotiating, preparing, or administering this Agreement
and any documents prepared in connection herewith or in any way arising out of this Agreement, which shall not exceed $15,000;
(b) protecting, preserving or enforcing any lien, security interest or other right granted by Client to Amerisource or arising
under applicable law, whether or not suit is brought, including but not limited to the defense of any Avoidance Claims; (c) complying
with any subpoena or other legal process attendant to any litigation in which Client is a party; including photocopying, travel,
and attorneys' fees and expenses; (d) the actual amount of all costs and expenses, including reasonable attorneys' fees, which
Amerisource may incur in enforcing this Agreement and any documents prepared in connection herewith, or in connection with any
federal or state insolvency proceeding commenced by or against Client, including those (i) arising out of the automatic stay, (ii)
seeking dismissal or conversion of the bankruptcy proceeding, or (iii) opposing confirmation of Client's plan thereunder.

 

25. Entire Agreement.
This Agreement supersedes all other agreements and understandings between the Parties hereto, verbal or written, express or implied,
relating to the subject matter hereof. No promises of any kind have been made by Amerisource or any third party to induce Client
to execute this Agreement. No course of dealing, course of performance or trade usage, and no parole evidence of any nature, shall
be used to supplement or modify any terms of this Agreement.

 

26. Choice of
Law. This Agreement and all transactions contemplated hereunder and/or evidenced hereby shall be governed by, construed
under, and enforced in accordance with the internal laws of the State of Texas.

 

27. Jury Trial
Waiver. In recognition of the higher costs and delay which may result from a jury trial, the Parties hereto waive any right
to trial by jury of any claim, demand, action or cause of action (a) arising hereunder, or (b) in any way connected with or related
or incidental to the dealings of the Parties hereto or any of them with respect hereto, in each case whether now existing or hereafter
arising, and whether sounding in contract or tort or otherwise; and each Party further waives any right to consolidate any such
action in which a jury trial has been waived with any other action in which a jury trial cannot be or has not been waived; and
each Party hereby agrees and consents that any such claim, demand, action or cause of action shall be decided by court trial without
a jury, and that any Party hereto may file an original counterpart or a copy of this section with any court as written evidence
of the consent of the Parties hereto to the waiver of their right to trial by jury.

 

28. Venue; Jurisdiction.
The Parties agree that any suit, action or proceeding arising out of the subject matter hereof, or the interpretation, performance
or breach of this Agreement, shall, if Amerisource so elects, be instituted in any court sitting in the State of Texas (the “Acceptable
Forums”). Each party agrees that the Acceptable Forums are convenient to it, and each party irrevocably submits to the jurisdiction
of the Acceptable Forums, irrevocably agrees to be bound by any judgment rendered thereby in connection with this Agreement, and
waives any and all objections to jurisdiction or venue that it may have under the laws of the State of Texas or otherwise in those
courts in any such suit, action or proceeding. Should such proceeding be initiated in any other forum, Client waives any right
to oppose any motion or application made by Amerisource as a consequence of such proceeding having been commenced in a forum other
than an Acceptable Forum.

 

29. Notice.
All notices to Amerisource hereunder shall be deemed given upon actual receipt by a responsible officer of Amerisource.

 

30. Counterparts.
This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if all
signatures were upon the same instrument. Delivery of an executed counterpart of the signature page to this Agreement by facsimile,
email or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Agreement, and
any Party delivering such an executed counterpart of the signature page to this Agreement by facsimile to any other Party shall
thereafter also promptly deliver a manually executed counterpart of this Agreement to such other Party, provided that the failure
to deliver such manually executed counterpart shall not affect the validity, enforceability, or binding effect of this Agreement.

 

IN WITNESS WHEREOF, the Parties
have executed this Agreement on the day and year first above written.

 

	CLIENT:	 	AMERISOURCE:
	 	 	 
	5J Oil Field Services, LLC	 	Amerisource Funding, Inc.
	 	 	 
	X  /s/ Matthew Flemming	 	X  /s/ Jason Floyd
	Name: 	Matthew Flemming	 	Name:  	Jason Floyd
	Title:	Manager	 	Title: 	Managing Director
	 	 	 
	5J Trucking, LLC	 	 

 

    7

     

    

 

	X /s/ Matthew Flemming	 
	Name:  	Matthew Flemming	 
	Title:	Manager	 
	 	 
	SMG Industries, Inc.	 
	 	 
	X  /s/ Matthew Flemming	 
	Name:  	Matthew Flemming	 
	Title:	President	 

 

    8

     

    

 

Exhibit “A”

SMG Inc, Daily Availability Report –
SAMPLE

 

	ACCOUNTS RECEIVABLE	 	 	 
	 	 	 	 	 
	1)	Total A/R Ledger Balance	 	 	 
	 	 	 	 	 
	2)	Less:Outstanding Credits	 	 	 
	 	 	 	 	 
	3)	Total Net A/R Outstanding	 	 	 
	 	 	 	 	 
	4)	Less:  A/R over 90 days from original invoice date	 	 
	 	 	 	 	 
	5)	Total A/R Outstanding < 90 Days	 	 	 
	 	 	 	 	 
	6)	Less:Miscellaneous Ineligibles	 	 	 
	 	 	 	 	 
	7)	Less:Cross-Age Exclusions of:	15%	 	 
	 	 	 	 	 
	8)	Less:  Specific Account Debtor OCLs	 	 
	 	 	 	 	 
	9)	Less:Concentration Cap Excl:	15%	 	 
	 	 	 	 	 
	10)	Total Eligible A/R:	 	 	 
	 	 	 	 	 
	11)	Less:Additional Reserves Held	 	 	 
	 	 	 	 	 
	12)	Advance Rate:	 	 	85%
	 	 	 	 	 
	13)	Availability:	 	 	 
	 	 	 	 	 
	14)	Less:  Amounts Currently Outstanding:	 	 
	 	 	 	 	 
	15)	Remaining Availability:	 	 	 
	 	 	 	 	 

 

    9

     

    

 

Exhibit ‘B’

 

    10

     

    

 

COMMERCIAL PROMISSORY NOTE

(Equipment Loan; Purchase Money)

 

	$1,401,558.91 USD	Date: _______________, 2019

 

FOR VALUE RECEIVED
and WITHOUT GRACE, on the dates, and in the amounts so herein stipulated, the undersigned, 5J
Oil Field Services, LLC and 5J Trucking, LLC whose address are
, together with SMG Industries, Inc. whose address is 
(hereinafter called “Maker”), promises to pay to the order of AMERISOURCE FUNDING, INC (“Lender”) at its
principal office located at 7225 Langtry, Houston, Texas 77040, in coin or currency of the United States of America, which at the
time of payment is legal tender for the payment of public and private debts, the principal sum of ONE MILLION FOUR HUNDRED AND
ONE THOUSAND AND FIVE HUNDRED FIFTY-EIGHT AND 91/100 DOLLARS ($1,401,558.91), together with accrued interest on the principal amount
hereof remaining unpaid from time to time, computed from the date hereof until maturity at a per annum rate, calculated on the
basis of a three hundred sixty (360) day year [except for calculation of the Maximum Rate, which will be calculated on the basis
of a three hundred sixty five (365) or three hundred sixty six (366) day year, as the case may be] determined on a fixed per annum
basis, equal to the lesser of (i) or (ii) as follows:

 

(i)        The
prime rate plus five and one-quarter percent (5.250%) per annum as determined from time to time in the Wall Street Journal (currently
10.00%) (the “Applicable Rate”); or

 

(ii)       the
Maximum Rate (as hereinafter defined),

 

which interest rate is further limited
and controlled by the provisions of this Note hereinafter set forth. The term “Maximum Rate”, as used herein, shall
mean, on any day, the highest non-usurious rate of interest (if any) permitted by applicable law on such day. For purposes of the
Texas Finance Code, as it may from time to time be amended, the Maximum Rate shall be referred to in and determined under the Texas
Finance Code, from time to time in effect; provided, however, that to the extent permitted by applicable law, Lender reserves the
right to change, from time to time by further notice and disclosure to Maker, the ceiling on which the Maximum Rate is based under
the Texas Finance Code; and, provided further, that the “highest non-usurious rate of interest permitted by applicable law”
for purposes of this Note shall not be limited to the applicable rate ceiling under the Texas Finance Code if federal laws or other
state laws now or hereafter in effect and applicable to this Note (and the interest contracted for, charged and collected hereunder)
shall permit a higher rate of interest. In no event shall the Applicable Rate herein exceed the Maximum Rate.

 

This Note is payable
as follows, to-wit:

 

(a)    Accrued
and unpaid interest on this Note shall be payable monthly, commencing one calendar month from the date hereof, and continuing thereafter
on the same day of each succeeding calendar month, and ending upon the maturity of this Note, however such maturity may be brought
about; and

 

(b)    All
outstanding principal of this Note and all accrued and unpaid interest hereon shall be due and payable on or before December____,
2022 (the “Maturity Date.

 

Upon execution hereof,
Maker shall pay an origination fee equal to $21,962.30. Said fees shall not be construed as interest.

 

THE WRITTEN LOAN AGREEMENT REPRESENTS
THE FINAL AGREEMENT BETWEEN THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS
OF THE PARTIES.

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS
BETWEEN THE PARTIES.

 

It is especially agreed that if default
shall be made in any payment due hereon, either principal or interest, or if there is a default in any of the terms, covenants
or provisions set forth in that certain Security Agreement, as hereinafter defined, or any other document given to secure this
Note or any Guaranty executed to support Lender’s entering into the Note or Security Agreement (collectively, the “Security
Instruments”) or in any other note or obligation of Maker to Lender (including guaranty agreements), then, in any such event,
at the option of Lender or any other holder hereof at any time thereafter without notice of intent to accelerate, notice of acceleration,
or any other demand or notice, the unpaid principal balance of this Note and all accrued interest shall at once become due and
payable. Any sum, principal or interest, payable under this Note which is not paid when due shall bear interest from the date such
payment is due until paid at the Maximum Rate, or if no Maximum Rate is established by applicable law, then at the Applicable Rate
plus five percent (5%) per annum. If default is made in the prompt payment of this Note when due or declared due and the same is
placed in the hands of an attorney for collection, or suit is brought on same, or the same is collected through probate, bankruptcy
or other judicial proceedings, then Maker agrees and promises to pay to Lender its reasonable and necessary attorney’s fees
and court costs.

 

If Lender or its successor
has not received the full amount of any installment payment at the end of the 10th day after it is due, Maker agrees to pay a late
charge to Lender. The amount of the late charge will be five percent (5%) of the amount of the overdue installment payment. Maker
agrees to pay the late charge promptly. The late charge will be charged only one time with respect to any late installment payment.

 

    11

     

    

 

It is agreed that time
is of the essence of this agreement. Upon the occurrence of an event of default (as such term is defined in the herein defined
Security Agreement), Lender may accelerate and declare this Note immediately due and payable without notice. Any failure to exercise
this option shall not constitute a waiver by Lender of the right to exercise the same at any other time.

 

All payments under
the Security Instruments received by Lender during the existence of any event of default may be applied by Lender against the indebtedness
(herein due Lender) in any manner and in such priority as Lender may specify, including without limitation, in accordance with
the provisions of any of the Security Instruments.

 

Maker and any and all
endorsers, guarantors and sureties severally waive all notices, demands for payment, presentment for payment, protest and notice
of protest, notice of intent to accelerate, notice of acceleration, any other notices of any kind, the filing of suit hereon for
the purpose of fixing liability and diligence in taking any action to collect amounts called for hereunder and in the handling
of collateral or securities at any time existing in connection herewith, and consent that the time of payment hereof may be extended
and re-extended from time to time without notice to any of them.

 

In addition to any
other security interests granted but Maker in the Security Instruments, Maker specifically provides, represents and warrants a
first priority lien and a Purchase Money Security Interest in the Equipment described on the attached Equipment Schedule and that
Maker’s grant of such lien hereunder does not constitute a fraudulent conveyance under any applicable law or contract and
that Maker is the owner of all right, title, and interest in the equipment free and clear of all liens, encumbrances, and security
interests.

 

It is further agreed
that Maker grants to Lender or any other holder hereof a first lien and security interest on (and the express right of setoff against)
all deposits and other sums at any time credited by or due from Lender or any other holder hereof to Maker, or any endorser, surety
or guarantor hereof as collateral security for the payment of this Note, and Lender or other holder hereof, at its option, may
at any time, without notice and without any liability, hold all or any part of any such deposits or other sums until all sums owing
on this Note have been paid in full and/or apply or set off all or any part of any such deposits or other sums credited by or due
from Lender or any other holder hereof to or against any sums due on this Note in any manner and in any order of preference which
Lender or other holder hereof, at its sole discretion, chooses.

 

It is the intention
of the parties hereto to comply with the usury laws of the State of Texas and of the United States of America. The parties hereto
do not intend to contract for, charge or receive any interest or other charge that is usurious, and by execution of this Note,
Maker agrees that Lender has no such intent. This Note, the hereinafter mentioned Security Agreement and Security Instruments,
and all other agreements between Maker and Lender or any other holder hereof, which are now existing or hereafter arising, whether
written or oral, are hereby expressly limited so that in no event whatsoever, whether by reason of acceleration of maturity hereof,
or otherwise, shall the amount paid, or agreed to be paid, to Lender or any other holder hereof for the use, forbearance or detention
of the money to be due hereunder or otherwise, or for the payment or performance of any covenant or obligation contained herein
or in any other document evidencing, securing, or pertaining to the indebtedness evidenced hereby, exceed the Maximum Rate. If
from any circumstance whatsoever fulfillment of any provisions hereof or other document, at the time performance of such provisions
shall be due, shall involve transcending the valid limits prescribed by law, then, ipso facto, the obligation to be fulfilled shall
be reduced to the Maximum Rate, and if from any such circumstance Lender or any other holder shall ever receive as interest or
otherwise an amount which will exceed the Maximum Rate, such amount which would be excessive interest shall be applied to the reduction
of the principal amount owing hereunder or on account of any other principal indebtedness of Maker to the holder and not to the
payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness,
such excess shall be refunded to Maker. All sums paid and agreed to be paid to Lender or any other holder for use, forbearance
or detention of the indebtedness of Maker shall, to the extent permitted by applicable law, be amortized, prorated, allocated,
and spread throughout the periods until payment in full of this Note (or any renewals, extensions and rearrangements hereof) so
that the actual rate of interest on account of this indebtedness evidenced by this Note is uniform throughout the term of this
Note (and all renewals, extensions and rearrangements hereof) and does not exceed the Maximum Rate. The terms and provisions of
this paragraph shall control and supersede any other provisions of this Note.

 

Except as otherwise
stated herein, all payments under this Note shall be applied first against the accrued and unpaid interest and the remainder against
the principal balance hereof. All partial prepayments shall be applied toward the payment of principal installments in the inverse
order of maturity. Lender’s records shall constitute prima facie evidence of the amount of funds advanced hereunder.

 

If at any time the
Applicable Rate exceed the Maximum Rate, then interest hereon shall accrue at the Maximum Rate. If the Applicable Rate should then
subsequently decrease to a level less than the Maximum Rate or if the Maximum Rate applicable to this Note should then subsequently
be increased to a level which would be greater than the Applicable Rate, then, in either case, the interest hereon shall thereafter
accrue at a rate equal to the applicable Maximum Rate until the aggregate amount of interest accrued through the term of this Note
equals the aggregate amount of interest which would have accrued at the Applicable Rate without regard to any usury limit, at which
time interest hereon shall again accrue at the Applicable Rate.

 

If at maturity or final
payment of this Note the total amount of interest accrued under the foregoing provisions is less than the total amount of interest
which would have accrued if the Applicable Rate had at all times been in effect, then Maker shall pay Lender the amount by which
(i) the lesser of (a) the amount of interest which would have accrued on this Note if the Maximum Rate had at all times been in
effect or (b) the amount of interest which would have accrued if the Applicable Rate had at all times been in effect, exceeds
(ii) the amount of interest paid by Maker to Lender in accordance with the other provisions of this Note.

 

    12

     

    

 

Any check, draft, money
order or other instrument given in payment of all or any part hereof or on any part of the indebtedness may be accepted by the
holder hereof and handled in collection in a customary manner, but same shall not constitute payment hereof or of the indebtedness
or diminish any rights of Lender, except to the extent that actual cash proceeds of such instrument are unconditionally received
by Lender.

 

The individual signing
below warrants and represents that s/he has the requisite authority to bind the entity on whose behalf s/he signs.

 

Without being limited
thereto or thereby, this Note is secured by that certain REVOLVING ACCOUNTS RECEIVABLE ASSIGNMENT AND TERM LOAN FINANCING AND SECURITY
AGREEMENT (the “Security Agreement”) executed by Maker for the benefit of Lender, covering all assets of Maker, including
the Collateral more fully described in the Security Agreement.

 

	CLIENT:	 
	5J
    Oil Field Services, LLC	 
	 	 
	X	 
	Name: 	Matthew Flemming	 
	Title:	 MANAGER	 
	 	 
	5J
    Trucking, LLC	 
	 	 
	X	 
	Name: 	Matthew Flemming	 
	Title:	  MANAGER	 
	 	 
	SMG
    Industries, Inc.	 
	 	 
	X	 
	Name: 	Matthew Flemming	 
	Title: 	    PRESIDENT	 

 

    13

     

    

 

PROMISSORY NOTE

 

EQUIPMENT SCHEDULE

 

	Department	Item 

#	Qty	Serial # / VIN	Asset 

#	Liens	Lender	Note 

Balance	Payment 

Amount	 Total FLV 	 	 Payoff Amount as of 

Payoff Date 
	Trailers	411	1	 	73121	X	Citizens 398010	0	-	$               -	 	 
	Trailers	417	1	 	82320	X	Citizens 398010	0	-	$               -	 	 
	Trailers	430	1	 	55004	X	Citizens 398010	64,105	4,081	$   105,000	 	$	60,591
	Trailers	399	1	 	64862	X	Citizens 9045139	0	0	$               -	 	 
	Trailers	401	1	 	65692	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	402	1	 	65864	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	403	1	 	65865	X	Citizens 9045139	265,642	8,575	$   290,000	 	$ 	259,651
	Trailers	404	1	 	72614	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	405	1	 	72615	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	406	1	 	72616	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	407	1	 	72617	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	408	1	 	72689	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	409	1	 	72690	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	410	1	 	72832	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	418	1	 	82868	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	419	1	 	82871	X	Citizens 9045139	-	-	$               -	 	 
	Trailers	393	1	 	43168	X	Citizens 9134123	261,311	8,571	$   230,000	 	$	247,591
	Trailers	394	1	 	43198	X	Citizens 9134123	-	-	$               -	 	 
	Trailers	412	1	 	73170	X	Citizens 9134123	-	-	$               -	 	 
	Trailers	413	1	 	73197	X	Citizens 9134123	-	-	$               -	 	 
	Trailers	420	1	 	83169	X	Citizens 9134123	-	-	$               -	 	 
	Trailers	421	1	 	83199	X	Citizens 9134123	-	-	$               -	 	 
	Cranes	447	1	 	A3069	X	Citizens 9206094	729,493	16,495	$   575,000	 	$	716,086
	Trucks	72	1	 	A1967	X	Citizens Pal 9128921	220,561	6,144	$   230,000	 	$	208,589
	Trucks	73	1	 	A1968	X	Citizens Pal 9128921	-	-	$               -	 	 
	 	 	 	 	 	 	 	$1,541,112	$43,866	$1,430,000	 	$	1,492,507

 

    14

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00305-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00305-of-00352.parquet"}]]