Document:

Exhibit 10.1

 

Execution Version

 

SECURED PROMISSORY NOTE

 

Effective Date: November 17,
2021

 

FOR VALUE RECEIVED, and subject to the terms and
conditions set forth herein, GP 2XCV LLC, a Delaware limited liability company (the “Borrower”), hereby unconditionally
promises to pay to the order of B. RILEY COMMERCIAL CAPITAL, LLC, a Delaware limited liability company, or its assigns (the “Noteholder,”
and together with the Borrower, the “Parties”), the principal amount of Seventy-Five Million Dollars ($75,000,000.00),
together with all accrued interest thereon and all accrued fees as provided in this Secured Promissory Note (as amended, restated, supplemented,
or otherwise modified from time to time in accordance with the terms hereof, the “Note”).

 

1.            Definitions;
Interpretation.

 

1.1            Capitalized
terms used herein shall have the meanings set forth in this Section 1.

 

“Acquire” means to
purchase, enter into, originate, receive by contribution or otherwise acquire. The terms “Acquired”, “Acquiring”
and “Acquisition” have correlative meanings.

 

“Acquisition Date”
means the date on which the Borrower Acquires any Portfolio Investment, whether on the Closing Date or on any date thereafter, which date
shall be (i) for any Exela Note, the settlement date for such Exela Note and (ii) for any Exela Term Loan, the effective date
of the assignment thereof.

 

“Advance” means the
funding by the Noteholder of all or a portion of the Loan in accordance with the terms of Section 2 hereof.

 

“Advance Date” means
the date on which the Noteholder funds an Advance to the Borrower, which date must be (i) an Acquisition Date and (ii) a Business
Day.

 

“Affiliate” as to
any Person, means any other Person that, directly or indirectly through one or more intermediaries, is in control of, is controlled by,
or is under common control with, such Person. For purposes of this definition, “control” of a Person means the power, directly
or indirectly, either to (a) vote ten percent (10%) or more of the securities or other equity interests having ordinary voting power
for the election of directors (or persons performing similar functions) of such Person or (b) direct or cause the direction of the
management and policies of such Person, whether by contract or otherwise.

 

“Anti-Corruption Laws”
means all laws, rules, and regulations of any jurisdiction applicable to the Borrower from time to time concerning or relating to bribery
or corruption, including the United States Foreign Corrupt Practices Act of 1977.

 

“Applicable Rate”
means the per annum rate equal to ten percent (10%).

 

    	 	 	 

     

    

 

“Beneficial Ownership Certification”
means, for a “legal entity customer” (as such term is defined in the Beneficial Ownership Regulation), a certification regarding
beneficial ownership to the extent required by the Beneficial Ownership Regulation with respect to such “legal entity customer”
in a form required by the Noteholder.

 

“Beneficial Ownership Regulation”
has the meaning set forth Section 13.10.

 

“Borrower” has the
meaning set forth in the introductory paragraph.

 

“Business Day” means
a day other than a Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to close.

 

“Cash” means such
coin or currency of the United States of America as at the time shall be legal tender for payment of all public and private debts.

 

“Change of Control”
means (a) any Person or group of persons within the meaning of §13(d)(3) of the Securities Exchange Act of 1934, other
than the Permitted Holders, becomes the beneficial owner, directly or indirectly, of thirty percent (30%) or more of the outstanding Equity
Interests of the Parent, (b) the Borrower ceases for any reason to be managed by the initial manager of the Borrower as of the Closing
Date or a successor manager appointed in accordance with the terms of the Borrower’s Constitutive Documents, (c) the Parent
ceases to own directly one hundred percent (100%) of the outstanding Equity Interests of Holdings or (d) Holdings ceases to own directly
one hundred percent (100%) of the outstanding Equity Interests of the Borrower.

 

“Closing Date” means
the date on which the conditions precedent set forth in Section 12.1 are satisfied or waived.

 

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

 

“Collateral” refers
to the “Collateral” set forth in the Security Agreement.

 

“Collateral Documents”
shall mean the Security Agreement, the Securities Account Control Agreement and each other document or instrument executed and delivered
in connection therewith.

 

“Constitutive Documents”
means, with respect to:

 

(a)            the
Borrower, its Limited Liability Company Operating Agreement;

 

(b)            Holdings,
its Limited Liability Company Operating Agreement; and

 

(c)            any
other Person, such Person’s articles of organization, charter, by-laws, limited liability company agreement, limited partnership
agreement, exempted limited partnership agreement or any other such document organizing such Person under applicable law.

 

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“Debt” of a Person,
means all (a) indebtedness for borrowed money; (b) obligations for the deferred purchase price of property or services, except
trade payables arising in the ordinary course of business which are not more than 30 days past the stated due date; (c) obligations
evidenced by notes, bonds, debentures, or other similar instruments; (d) obligations as lessee under capital leases; (e) obligations
in respect of any interest rate swaps, currency exchange agreements, commodity swaps, caps, collar agreements, or similar arrangements
entered into by such Person providing for protection against fluctuations in interest rates, currency exchange rates, or commodity prices,
or the exchange of nominal interest obligations, either generally or under specific contingencies; (f) obligations under acceptance
facilities and letters of credit; (g) guaranties, endorsements (other than for collection or deposit in the ordinary course of business),
and other contingent obligations to purchase, to provide funds for payment, to supply funds to invest in any Person, or otherwise to assure
a creditor against loss, in each case, in respect of indebtedness set out in clauses (a) through (f) of another Person; (h) indebtedness
set out in clauses (a) through (g) of any other Person secured by any lien on any asset of such Person, whether or not such
indebtedness has been assumed by such Person, and (i) indebtedness of any partnership, unlimited liability company, or unincorporated
joint venture in which such Person is a general partner, member, or a joint venturer, respectively (unless such Debt is expressly made
non-recourse to Person).

 

“Debtor Relief Laws”
means, collectively: (a) Title 11 of the United States Code entitled “Bankruptcy”, as amended; and (b) all other
liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency,
reorganization, or similar debtor relief laws of the United States, any state thereof, or any other applicable jurisdictions from time
to time in effect.

 

“Default” means any
of the events specified in Section 10 which constitute an Event of Default or which, upon the giving of notice, the lapse of time,
or both, pursuant to Section 10, would, unless cured or waived, become an Event of Default.

 

“Default Rate” means
the Applicable Rate plus two percent (2.0%).

 

“Disposition” or
 “Dispose” means the sale, transfer, license, lease, or other disposition (whether in one transaction or in a series
of transactions, and including any sale and leaseback transaction) of any asset or property (including, without limitation, any Equity
Interests) by any Person (or the granting of any option or other right to do any of the foregoing), including any sale, assignment, transfer,
or other disposal, with or without recourse, of any notes or accounts receivable or any rights and claims associated therewith.

 

“Distribution” means
(a) any dividend, distribution or payment, direct or indirect, to or for the benefit of any holder of any Equity Interests of a Person
now or hereafter outstanding, including any Distribution in Kind (and including, without limitation, any payment of principal of the underlying
loans in a Portfolio Investment), except for the issuance of Equity Interests upon the exercise of outstanding warrants, options or other
rights, or (b) any redemption, retirement, sinking fund or similar payment, purchase or other acquisition for value, direct or indirect,
of any Equity Interests of a Person now or hereafter outstanding.

 

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“Distribution in Kind”
means any dividend or distribution, direct or indirect, for the benefit of a holder of Equity Interests.

 

“Dollars” means the
lawful currency of the United States.

 

“Equity Interests”
means any and all shares, interests, participations or other equivalents (however designated) of capital stock of a corporation, any and
all equivalent of the ownership (or profit) interests in a Person (other than a corporation), securities convertible into or exchangeable
for shares of capital stock of (or other ownership or profit interests in) such Person, and any and all warrants, rights, or options to
purchase any of the foregoing, whether voting or nonvoting, and whether or not such shares, warrants, options, rights, or other interests
are authorized or otherwise existing on any date of determination.

 

“ERISA” means the
Employee Retirement Income Security Act of 1974, as amended from time to time.

 

“ERISA Affiliate”
means an entity, whether or not incorporated, that is under “common control” with the Borrower within the meaning of §4001(a)(14)
of ERISA or is part of a group that includes the Borrower and that is treated as a single employer under §414 of the Code.

 

“Event of Default”
has the meaning set forth in Section 10.

 

“Exchange” shall
have the meaning set forth in Section 8.13.

 

“Exchange Documents”
means (a) the Confidential Offering Memorandum and Consent to Solicitation Statement, dated October 27, 2021, and (b) the
Term Loan Exchange Agreement and related exhibits shared with the existing lenders of the Exela Term Loans on October 27, 2021.

 

“Exela Credit Agreement”
means that certain First Lien Credit Agreement, dated as of July 12, 2017, among Exela Intermediate Holdings LLC, Exela Intermediate,
the financial institutions identified therein as “Lenders” and Wilmington Savings Fund Society, FSB, as successor administrative
agent and successor collateral agent (as amended, restated, supplemented or otherwise modified from time to time, and as and to the extent
amended / replaced / exchanged in accordance with the terms of the Exchange Document identified in clause (b) of the definition thereof).

 

“Exela Indenture”
means that certain 10.000% First-Priority Senior Secured Notes Due 2023 Indenture, dated as of July 12, 2017, among Exela Intermediate
and Exela Finance Inc., and Wilmington Trust, National Association, as trustee (as amended, restated, supplemented or otherwise modified
from time to time, and as and to the extent replaced / exchanged in accordance with the terms of the Exchange Document identified in clause
(a) of the definition thereof).

 

“Exela Intermediate”
refers to Exela Intermediate LLC.

 

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“Exela Notes” refers
to the notes issued under the Exela Indenture (including, for the avoidance of doubt, to the extent replaced / exchanged in accordance
with the terms of the Exchange Document identified in clause (a) of the definition thereof).

 

“Exela Term
Loans” refers to those term loans advanced under the Exela Credit Agreement (including, for the avoidance of doubt, to the
extent amended / replaced / exchanged in accordance with the terms of the  Exchange Document identified in clause
(b) of the definition thereof).

 

“Fee Letter” means
that certain Fee Letter, dated as of the Closing Date, by and between the Borrower and the Noteholder (as amended, restated,
supplemented or otherwise modified from time to time).

 

“First Priority”
means, with respect to any Lien purported to be created in any Collateral pursuant to any Collateral Document, that such Collateral is
subject to no equal or prior Lien and is not subject to any other Liens, except in each case for Liens under Section 9.2.

 

“GAAP” means generally
accepted accounting principles in the United States of America as in effect from time to time.

 

“Governmental Authority”
means the government of any nation or any political subdivision thereof, whether at the national, state, territorial, provincial, municipal
or any other level, and any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive,
legislative, judicial, taxing, regulatory or administrative powers or functions of, or pertaining to, government.

 

“Grant” means to
grant, bargain, sell, warrant, alienate, remise, demise, release, convey, collaterally assign, transfer, mortgage, pledge, charge and
create a security interest in and to grant a right of set-off against, deposit, set over or confirm. A Grant of the Collateral, or of
any other instrument, shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including
the immediate continuing right to claim for, collect, receive and receipt for principal and interest payments in respect of the Collateral,
and all other monies payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to
exercise all rights and options, to bring proceedings in the name of the granting party or otherwise, and generally to do and receive
anything that the granting party is or may be entitled to do or receive thereunder or with respect thereto.

 

“Holdings” means
GP 2XCV Holdings LLC, a Delaware limited liability company.

 

“Indemnified Party”
has the meaning set forth in Section 13.2(b).

 

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“Independent Manager”
means a natural person who (a) for the five-year period prior to his or her appointment as an independent director or independent
manager, has not been, and during the continuation of his or her service as such independent director or independent manager, is not:
(1) an employee, director, stockholder, member, manager, partner or officer of the Borrower or any of its Affiliates (other than
his or her service as an independent director or independent manager of Affiliates of the Borrower that are structured to be “bankruptcy
remote” in a manner substantially similar to the Borrower); (2) a customer or supplier of the Borrower or any of its Affiliates
(other than a supplier of his or her service as an independent director or independent manager of the Borrower or such Affiliate); or
(3) any member of the immediate family of a person described in clause (1) or (2) above; and (b) has (1) at least
three (3) years prior experience as an independent director or independent manager for a corporation, limited liability company or
limited partnership; and (2) at least three years of employment experience with one or more entities that provide, in the ordinary
course of their respective businesses, advisory, management or placement services to issuers of securitization or structured finance instruments,
agreements or securities.

 

“Interest Payment Date”
means, subject to Section 3.2 and Section 3.3, the last Business Day of each March, June, September and December, and the
Maturity Date.

 

“Investment” means,
as applied to any Person, (a) any direct or indirect acquisition by that Person of securities, partnership or limited liability company
interests or other interests of / in any other Person, or of all or any substantial part of the business or assets of any other Person
and (b) any direct or indirect loan, advance or capital contribution by that Person to any other Person.

 

“Law” as to any Person,
means the certificate of incorporation and by-laws or other organizational or governing documents of such Person, and any law (including
common law), statute, ordinance, treaty, rule, regulation, order, decree, judgment, writ, injunction, settlement agreement, requirement
or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or
any of its property or to which such Person or any of its property is subject.

 

“Lien” means with
respect to any Person, any security interest, lien, encumbrance or other similar interest granted or suffered to exist by such Person
in any real or personal property, asset or other right owned or being purchased or acquired by such Person (including an interest in respect
of a capital lease) which secures payment or performance of any obligation and shall include any mortgage, lien, encumbrance, title retention
lien, charge or other security interest of any kind, whether arising by contract, as a matter of law, by judicial process or otherwise.

 

“Loan” means the
loan evidenced by this Note in the aggregate principal amount of Seventy-Five Million Dollars ($75,000,000.00).

 

“Loan Documents”
means, collectively, this Note, the Collateral Documents, the Fee Letter  and all other agreements, documents, certificates, and instruments executed and
delivered to the Noteholder by the Borrower or Holdings pursuant to the terms thereof, and any amendments and supplements thereto or modifications
thereof that are executed and delivered pursuant to the terms of this Note or any of the other Loan Documents and any additional documents
delivered in connection with this Note or any such amendment, supplement or modification that the parties thereto agree shall constitute
a “Loan Document” hereunder.

 

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“Loan Party” means,
collectively and individually, the Borrower and Holdings.

 

“Mandatory Prepayment”
has the meaning set forth in Section 3.3.

 

“Margin Regulations”
means Regulations T, U and X of the Federal Reserve Board, as amended.

 

“Margin Stock” means
 “margin stock” as defined in the Margin Regulations, including any debt security which is by its terms convertible into “Margin
Stock”.

 

“Material Action”
means to: (a) file or consent to the filing of any bankruptcy, insolvency or reorganization petition under any applicable federal,
state or other law relating to a bankruptcy naming the Borrower as debtor or other initiation of bankruptcy or insolvency proceedings
by or against the Borrower, or otherwise seek, with respect to the Borrower, relief under any laws relating to the relief from debts or
the protection of debtors generally; (b) seek or consent to the appointment of a receiver, liquidator, conservator, assignee, trustee,
sequestrator, custodian or any similar official for the Borrower or all or any portion of its properties; (c) make or consent to
any assignment for the benefit of the Borrower’s creditors generally; (d) admit in writing the inability of the Borrower to
pay its debts generally as they become due; (e) petition for or consent to substantive consolidation of the Borrower with any other
person; (f) amend or alter or otherwise modify or remove all or any part of Section 4.5 of the Constitutive Documents of the
Borrower; (g) amend, alter or otherwise modify or remove all or any part of the definition of “Independent Manager” or
the definition of “Material Action” (or any similar or analogous term or provision) in the Constitutive Documents of the Borrower;
(h) to the fullest extent permitted by applicable law, dissolve, merge, liquidate or consolidate; or (i) except as expressly
permitted by the Loan Documents, sell all or substantially all of its assets.

 

“Material Adverse Effect”
means a material adverse effect on (a) the business, assets, properties, liabilities (actual or contingent), operations or financial
condition of the Borrower; (b) the validity or enforceability of the Note or any Collateral Document; (c) the perfection or
priority of any Lien purported to be created under any Collateral Document; (d) the rights or remedies of the Noteholder hereunder
or under any of the Collateral Documents; (e) the Borrower’s ability to perform any of its material obligations hereunder or
under the Security Agreement; or (f) Holdings’ ability to perform any of its material obligations hereunder or under the Security
Agreement.

 

“Material Loan Event”
means any of the following with respect to any Portfolio Investment:

 

(a)            an
event of default (or any similar term (including “Events of Default” as defined) under the underlying indenture or credit
agreement with respect to such Exela Note or Exela Term Loan) has occurred and is continuing under the underlying indenture or credit
agreement with respect to such Exela Note or Exela Term Loan;

 

(b)            the
underlying obligor has disaffirmed, disclaimed, repudiated or rejected, in whole or in material part, or challenged the validity of, such
obligation or any related Portfolio Documents;

 

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(c)            the
unpaid principal amount of such obligation has been reduced, waived or forgiven for any reason other than by payment in immediately available
funds of a like amount of principal thereof (whether due to set-off, counterclaim, charge-off, write down, waiver by the issuer thereof
or otherwise) or any noteholder’s / lender’s rights to payment of principal as and when due thereunder have been waived or
delayed or lenders thereunder have agreed to forbear from enforcing their rights to such payment;

 

(d)            such
obligation is no longer capable of being, or is not, the subject of a first priority security interest or other arrangement having a similar
commercial effect in favor of the Noteholder;

 

(e)            such
obligation constitutes Margin Stock; or

 

(f)            such
obligation is an obligation pursuant to which any future advances or payments to the borrower or the obligor thereof may be required to
be made by the Borrower (other than to indemnify an agent or representative for lenders pursuant to the Portfolio Document);

 

provided that, for the avoidance of doubt, the consummation
of the transactions contemplated by the Exchange Documents, in accordance with the provisions thereof and of the underlying agreements
with respect to which the Exchange Documents relate, shall not constitute a Material Loan Event.

 

“Maturity Date” means
the earlier of (a) the sixth (6th) month anniversary of the date of this Note and (b) the date on which all amounts
under this Note shall become due and payable pursuant to Section 3.3 or Section 11.

 

“Multiemployer Plan”
means a Plan which is a “multiemployer plan” as defined in §4001(a)(3) of ERISA to which the Borrower or any ERISA
Affiliate makes or is obligated to make contributions.

 

“Note” has the meaning
set forth in the introductory paragraph.

 

“Noteholder” has
the meaning set forth in the introductory paragraph.

 

“Obligations” means
all amounts owing by the Loan Parties to the Noteholder pursuant to or in connection with this Note or any other Loan Document or otherwise
with respect to the Loan, including, without limitation, all principal, interest (including any interest accruing after the filing of
any petition in bankruptcy or the commencement of any insolvency, reorganization or like proceeding relating to the Borrower, whether
or not a claim for post-filing or post-petition interest is allowed in such proceeding), reimbursement obligations, fees, expenses, indemnification
and reimbursement payments, costs and expenses (including all fees and expenses of counsel to the Noteholder incurred pursuant to this
Note or any other Loan Document), whether direct or indirect, absolute or contingent, liquidated or unliquidated, now existing or hereafter
arising hereunder or thereunder.

 

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

 

    	 	8	 

     

    

 

“Opinion of Counsel”
means a written opinion addressed to the Noteholder, in form and substance reasonably satisfactory to the Noteholder, of a nationally
or internationally recognized law firm or an attorney admitted to practice (or law firm, one or more of the partners of which are admitted
to practice) before the highest court of any State of the United States or the District of Columbia (or of any other relevant jurisdiction,
in the case of an opinion relating to the laws of such other jurisdiction) in the relevant jurisdiction, which attorney may, except as
otherwise expressly provided in this Note, be counsel for the Borrower and which attorney or firm shall be reasonably satisfactory to
the Noteholder. Whenever an Opinion of Counsel is required hereunder, such Opinion of Counsel may rely on opinions of other counsel who
are so admitted and otherwise satisfactory which opinions of other counsel shall accompany such Opinion of Counsel and shall be addressed
to the Noteholder (or shall state that the Noteholder shall be entitled to rely thereon).

 

“Parent” means Exela
Technologies, Inc., a Delaware corporation.

 

“Parent Initial Investment”
means an amount of not less than $2,000,000 which equity investment is made prior to the Closing Date and used solely to fund the day
to day operations of the Borrower and to pay closing fees and expenses on the Closing Date.

 

“Parent Investment”
means, as of the date of determination, with respect to any proposed Advance to finance the proposed Acquisition of Exela Notes and/or
Exela Term Loans on any proposed Acquisition Date:

 

(a)            if,
as a result of a proposed Acquisition of Exela Notes and/or Exela Term Loans, the VWAP (when aggregated with all prior or simultaneous
Acquisitions of Exela Notes and Exela Term Loans) equals or is less than eighty percent (80%) of par, then prior to or simultaneously
with the Advance Date for such proposed Advance, Holdings shall contribute (in Cash to the Borrower) an equity investment equal to the
amount that, when aggregated with all prior or simultaneous equity investments by Holdings to the Borrower, equals 26.6667% of the sum
of the proposed Advance and the aggregate amount of all prior Advances; provided that the amount of such equity investment shall in no
event be less than $0 or more than the amount that, when aggregated with all prior or simultaneous equity investments by Holdings to the
Borrower, would equal Twenty Million Dollars ($20,000,000);

 

(b)            if,
as a result of a proposed Acquisition of Exela Notes and/or Exela Term Loans, the VWAP (when aggregated with all prior or simultaneous
Acquisitions of Exela Notes and Exela Term Loans) would be greater than eighty percent (80%) but less than or equal to eighty-five percent
(85%) of par, then prior to or simultaneously with the Advance Date for such proposed Advance, Holdings shall contribute (in Cash to the
Borrower) an equity investment equal to the amount that, when aggregated with all prior or simultaneous equity investments by Holdings
to the Borrower, equals 33.3333% of the sum of the proposed Advance and the aggregate amount of all prior Advances; provided that the
amount of such equity investment shall in no event be less than $0 or more than the amount that, when aggregated with all prior or simultaneous
equity investments by Holdings to the Borrower, would equal Twenty-Five Million Dollars ($25,000,000); and

 

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(c)            if,
as a result of a proposed Acquisition of Exela Notes and/or Exela Term Loans, the VWAP (when aggregated with all prior or simultaneous
Acquisitions of Exela Notes and Exela Term Loans) would be greater than eighty-five percent (85%) but less than or equal to one hundred
percent (100%) of par, then prior to or simultaneously with the Advance Date for such proposed Advance, Holdings shall contribute (in
Cash to the Borrower) an equity investment equal to the amount that, when aggregated with all prior or simultaneous equity investments
by Holdings to the Borrower, equals 40.0000% of the sum of the proposed Advance and the aggregate amount of all prior Advances; provided
that the amount of such equity investment shall in no event be less than $0 or more than the amount that, when aggregated with all prior
or simultaneous equity investments by Holdings to the Borrower, would equal Thirty Million Dollars ($30,000,000).

 

The Parent Initial Investment and other
equity investments made following the Closing Date and used to fund the day to day operations of the Borrower and to pay closing fees
and expenses (and not used to purchase Portfolio Investments) shall not be included in determining a Parent Investment.

 

“Parties” has the
meaning set forth in the introductory paragraph.

 

“PATRIOT Act” means
the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (Title III
of Pub. L. 107-56, signed into law October 26, 2001).

 

“PBGC” means the
Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA (or any successor thereto).

 

“Permitted Holder”
means (a) investment funds managed by Affiliates of HandsOn Global Management, LLC and other co-investors in the Equity Interests
of Parent as of the Closing Date and (b) the directors, executive officers and other management personnel of the Borrower, Holdings
or any direct or indirect parent of the Borrower. 

 

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

 

“Plan” at any one
time, means any “employee benefit plan” (as defined in Section 3(2) of ERISA) that is subject to Title IV of ERISA
and in respect of which the Borrower or an ERISA Affiliate is (or, if such plan were terminated at such time, would under §4062 or
 §4069 of ERISA be deemed to be) an “employer” as defined in §3(5) of ERISA.

 

“Pledged Debt” shall
have the meaning ascribed to such term in the Security Agreement.

 

“Portfolio Documents”
means (a) the Exela Credit Agreement, (b) the Exela Indenture, (c) any other indenture, credit agreement or other agreement
pursuant to which the Exela Term Loans or Exela Notes has been issued or created, (d) each other agreement that governs the terms
of or secures the obligations represented by such Exela Term Loans or Exela Notes or of which the holders of such Exela Term Loans or
Exela Notes are the beneficiaries, and (e) all related transaction documents.

 

    	 	10	 

     

    

 

“Portfolio Investment”
means any Exela Note or Exela Term Loan directly held or maintained by the Borrower, including any such Investment received by Borrower
(or the applicable holder or lender thereof) in the form of additional principal amount of Exela Notes, Exela Term Loans or other obligations.

 

“Proceeds” means
cash proceeds received by the Borrower in respect of any Portfolio Investment, including the proceeds of any Disposition, realization
or distributions of any Portfolio Investment and Proceeds (as defined in the Security Agreement).

 

“Related Parties”
with respect to any Person, means such Person’s Affiliates and the directors, officers, employees, partners, agents, trustees, administrators,
managers, advisors, and representatives of it and its Affiliates.

 

“Reportable Event”
means any of the events set forth in §4043(c) of ERISA, other than those events as to which the thirty (30) day notice period
is waived.

 

“Sanctioned Country”
means, at any time, a country or territory which is itself the subject or target of any comprehensive or country-wide Sanctions.

 

“Sanctioned Person”
means, at any time, (a) any Person listed in any Sanctions-related list of designated Persons maintained by a Sanctions Authority;
(b) any Person operating, organized, or resident in a Sanctioned Country, (c) any Person owned or controlled by any such Person
or Persons described in the foregoing clauses (a) or (b), or (d) any Person that is the subject or target of any Sanctions.

 

“Sanctions” mean
all economic or financial sanctions or trade embargoes imposed, administered, or enforced from time to time by a Sanctions Authority.

 

“Sanctions Authority”
means OFAC, the U.S. Department of State, the United Nations Security Council, the European Union, any EU member state, Her Majesty’s
Treasury of the United Kingdom, Canada, or other relevant sanctions authority.

 

“Securities Account Control
Agreement” means the Securities Account Control Agreement, dated on or prior to the Closing Date, among the Borrower as debtor,
the Noteholder, as secured party, and B. Riley Securities, Inc., as custodian or securities intermediary, as amended, restated, supplemented,
or otherwise modified from time to time in accordance with the terms hereof and thereof.

 

“Security Agreement”
means the Security and Pledge Agreement, dated as of the Closing Date, the Borrower, Holdings and the Noteholder, as amended, restated,
supplemented, or otherwise modified from time to time in accordance with the terms hereof.

 

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“Solvent” with respect
to the Borrower or Holdings, as of any date of determination, means that on such date (a) the present fair salable value of the property
and assets of such Person exceeds the debts and liabilities, including contingent liabilities, of such Person, (b) the present fair
salable value of the property and assets of such Person is greater than the amount that will be required to pay the probable liability
of such Person on its debts and other liabilities, including contingent liabilities, as such debts and other liabilities become absolute
and matured, (c) such Person does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts and
liabilities, including contingent liabilities, beyond its ability to pay such debts and liabilities as they become absolute and matured,
and (d) such Person does not have unreasonably small capital with which to conduct the business in which it is engaged as such business
is now conducted and is proposed to be conducted. The amount of contingent liabilities at any time shall be computed as the amount that,
in the light of all the facts and circumstances existing at such time, reasonably estimates the amount of contingent liability known or
reasonably identifiable by the Borrower or Holdings, as applicable, that can reasonably be expected to become an actual or matured liability.

 

“Subsidiary” as to
any Person, means any corporation, partnership, limited liability company, joint venture, trust, or estate of or in which more than fifty
percent (50%) of (a) the issued and outstanding capital stock having ordinary voting power to elect a majority of the board of directors
of such corporation (irrespective of whether at the time capital stock of any other class of such corporation may have voting power upon
the happening of a contingency), (b) the interests in the capital or profits of such partnership, limited liability company or joint
venture, or (c) the beneficial interests in such trust or estate, is at the time directly or indirectly owned or controlled through
one or more intermediaries, or both, by such Person. Unless otherwise qualified, all references to a “Subsidiary” or to “Subsidiaries”
in this Note shall refer to a Subsidiary or Subsidiaries of the Borrower.

 

“Taxes” means any
and all present or future income, stamp, or other taxes, levies, imposts, duties, deductions, charges, fees, or withholdings imposed,
levied, withheld, or assessed by any Governmental Authority, together with any interest, additions to tax, or penalties imposed thereon
and with respect thereto.

 

“VWAP” means the
volume weighted average price, calculated based on the principal amount of Exela Notes and/or Exela Term Loans purchased or to be purchased
by the Borrower multiplied by the purchase price paid or to be paid by the Borrower for such principal amount of Exela Notes and/or Exela
Term Loans. For the avoidance of doubt, “VWAP” will not be calculated based on trading prices and volumes in the market generally.

 

1.2            Interpretation.
For purposes of this Note (a) the words “include,” “includes,” and “including” shall be deemed
to be followed by the words “without limitation”; (b) the word “or” is not exclusive; and (c) the words
 “herein,” “hereof,” “hereby,” “hereto,” and “hereunder” refer to this Note
as a whole. The definitions given for any defined terms in this Note shall apply equally to both the singular and plural forms of the
terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine, and neuter forms. Unless
the context otherwise requires, references herein to: (x) Schedules, Exhibits, and Sections mean the Schedules, Exhibits, and Sections
of this Note; (y) an agreement, instrument, or other document means such agreement, instrument, or other document as amended, supplemented,
and modified from time to time to the extent permitted by the provisions thereof; and (z) a statute means such statute as amended
from time to time and includes any successor legislation thereto and any regulations promulgated thereunder. This Note shall be construed
without regard to any presumption or rule requiring construction or interpretation against the party drafting an instrument or causing
any instrument to be drafted.

 

    	 	12	 

     

    

 

2.            Term
Loan. Subject to the terms and conditions of this Note, the Noteholder agrees to make, in one
or more Advances, a term loan to the Borrower in an aggregate amount of all such Advances up to the Loan amount. The amount borrowed under
this Section 2, to the extent repaid or prepaid, may not be reborrowed. The right of the Borrower to request an Advance and the obligation
of the Noteholder to fund such Advance, subject to the terms and conditions hereof, shall terminate on the date that is thirty (30) days
prior to the Maturity Date. Prior to the funding of any Advance, the conditions precedent set forth in Sections 12.1 and 12.2 must be
satisfied.

 

3.            Payment
Dates; Prepayments.

 

3.1          Payment
Dates. The aggregate unpaid principal amount of the Loan, all accrued and unpaid interest thereon, and all other amounts payable under
this Note shall be due and payable on the Maturity Date, unless or to the extent otherwise provided in Section 3.3, Section 5.2
or in Section 11.

 

3.2          Optional
Prepayments. The Borrower may prepay the Loan in whole or in part at any time or from time to time by paying on the date of prepayment,
the principal amount to be prepaid together with, accrued and unpaid interest thereon to the date of prepayment, but without premium or
penalty, other than any applicable the fees payable under Section 5.6 relating thereto. No prepaid amount may be reborrowed.

 

3.3          Mandatory
Prepayments. The Borrower shall be required to prepay (or pay, in the case of clause (c) below) the outstanding principal balance
of the Loan, together with any accrued and unpaid interest thereon and fees hereunder or under the Security Agreement upon the occurrence
of the following events and in or to the extent of the following amounts (plus the above referenced interest and fees) (any such prepayment,
a “Mandatory Prepayment”):

 

(a)            Upon
the incurrence of any Debt not permitted under Section 9.1, in an amount equal to the net proceeds of such Debt;

 

(b)            Upon
the receipt of any principal payments received under the Exela Notes or the Exela Term Loans, whether mandatory or voluntary, in the amount
of such principal payments received;

 

(c)            Upon
the receipt of any cash payment (including any portion of the “Cash Amount” (as defined in the Exchange Documents) as consideration
for the Exchange, in the amount of such cash payments received; and

 

(d)            Upon
the Maturity Date.

 

    	 	13	 

     

    

 

4.            Collateral
Documents.

 

4.1            The
Borrower’s performance of its Obligations hereunder is secured by a first priority security interest in the collateral specified
in the Security Agreement and/or the Securities Account Control Agreement, as applicable.

 

4.2            Holdings
has granted a first priority security interest in all of the Equity Interests of or in the Borrower as set forth in the Security Agreement.

 

5.            Interest.

 

5.1            Interest
Rate. Except as otherwise provided herein, the outstanding principal amount of each Advance of the Loan made hereunder shall bear
interest at the Applicable Rate from the date of such Advance was made until the date such Advance is paid in full, whether at maturity,
upon acceleration, by prepayment, or otherwise.

 

5.2            Interest
Payment Dates. Interest shall be payable in arrears to the Noteholder on each Interest Payment Date.

 

5.3            Default
Interest. If any amount payable hereunder is not paid when due (without regard to any applicable grace periods), whether at stated
maturity, by acceleration, or otherwise, such overdue amount shall bear interest at the Default Rate from the date of such non-payment
until such amount is paid in full, which interest shall be payable on demand.

 

5.4            Computation
of Interest. All computations of interest shall be made on the basis of 365 or 366 days, as the case may be, and the actual number
of days elapsed. Interest shall accrue on the Loan on the day on which the Loan is made, and shall not accrue on any portion of the Loan
paid for the day on which it is paid.

 

5.5            Interest
Rate Limitation. If at any time and for any reason whatsoever, the interest rate payable on the Loan shall exceed the maximum rate
of interest permitted to be charged by the Noteholder to the Borrower under applicable Law, such interest rate shall be reduced automatically
to the maximum rate of interest permitted to be charged under applicable Law on that portion of each sum paid attributable to that portion
of such interest rate that exceeds the maximum rate of interest permitted by applicable Law and amounts that would have otherwise accrued
as interest but for such reduced maximum rate of interest as herein provided shall be deemed a voluntary prepayment of principal.

 

5.6            [Reserved].

 

6.            Payment
Mechanics.

 

6.1            Manner
of Payments. All payments of interest and principal shall be made in lawful money of the United States of America no later than 12:00
p.m. (Eastern Time) on the date on which such payment is due by wire transfer of immediately available funds to the Noteholder’s
account at a bank specified by the Noteholder in writing to the Borrower from time to time.

 

    	 	14	 

     

    

 

6.2            Application
of Payments. All payments made under this Note shall be applied first to the payment of any fees or charges outstanding hereunder,
second to accrued and unpaid interest, and third to the payment of the principal amount outstanding under the Note.

 

6.3            Business
Day Convention. Whenever any payment to be made hereunder shall be due on a day that is not a Business Day, such payment shall be
made on the next succeeding Business Day and such extension will be taken into account in calculating the amount of interest payable under
this Note.

 

6.4            Evidence
of Debt. The Noteholder is authorized to record on the grid attached hereto as Exhibit A each Advance made to the Borrower and
each payment or prepayment thereof. The entries made by the Noteholder shall, to the extent permitted by applicable Law, be prima facie
evidence of the existence and amounts of the obligations of the Borrower therein recorded; provided, however, that the failure
of the Noteholder to record any Advance or any such payments or prepayments, or any inaccuracy therein, shall not in any manner affect
the obligation of the Borrower to repay (with applicable interest) the Loan in accordance with the terms of this Note.

 

6.5            Rescission
of Payments. If at any time any payment made by the Borrower under this Note is rescinded or must otherwise be restored or returned
upon the insolvency, bankruptcy, or reorganization of the Borrower or otherwise, the Borrower’s obligation to make such payment
shall be reinstated as though such payment had not been made.

 

7.           Representations
and Warranties; Covenant. The Borrower hereby represents
and warrants (and in respect of Section 7.19 hereof, represents, warrants and covenants) to the Noteholder on each Advance Date and,
if different, each Acquisition Date as follows:

 

7.1            Existence;
Power and Authority; Compliance with Laws. The Borrower (a) is a limited liability company duly organized, validly existing,
and in good standing under the laws of the State of Delaware, (b) has the requisite limited liability company power and authority,
and the legal right, to execute and deliver this Note and the other the Loan Documents to which it is a party, and to perform its obligations
hereunder and thereunder, and (c) is in compliance with all Laws, except to the extent that the failure to comply therewith has not
had nor could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

7.2            Authorization;
Execution and Delivery. The execution and delivery of the Loan Documents by the Borrower and the performance of its obligations hereunder
and thereunder have been duly authorized by all necessary limited liability company action in accordance with all applicable Laws. The
Borrower has duly executed and delivered to the Noteholder the Loan Documents to which it is a party.

 

7.3            No
Approvals. No consent or authorization of, filing with, notice to, or other act by, or in respect of, any Governmental Authority or
any other Person is required in connection with the extension of credit hereunder or in order for the Borrower to execute, deliver, or
perform any of its obligations under the Loan Documents to which it is a party, except (i) consents, authorizations, filings, and
notices have been obtained or made and are in full force and effect and (ii) the filings referred to in Section 7.16.

 

    	 	15	 

     

    

 

7.4            No
Violations. The execution, delivery and performance of the Loan Documents, and the consummation by the Borrower of the transactions
contemplated hereby and thereby do not and will not (a) violate, in any material respect, any Law applicable to the Borrower or by
which any of its properties or assets may be bound; or (b) result in, or require, the creation or imposition of any Lien on any of
its properties or assets pursuant to any Law applicable to the Borrower or any such material contract or agreement by which the Borrower
may be bound (other than the Liens created by the Loan Documents to which it is a party).

 

7.5            Enforceability.
Each of the Loan Documents to which the Borrower is a party is a valid, legal, and binding obligation of the Borrower, enforceable against
the Borrower in accordance with its terms, except as enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, or similar laws affecting the enforcement of creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law).

 

7.6            No
Litigation. No action, suit, litigation, investigation, or proceeding of, or before, any arbitrator or Governmental Authority is pending
or, to the knowledge of the Borrower, threatened by or against the Borrower or any of its property or assets (a) with respect any
of the Loan Documents or any of the transactions contemplated hereby or thereby or (b) that have had or could reasonably be expected
to have a Material Adverse Effect.

 

7.7            PATRIOT
Act; Anti-Money Laundering. The Borrower is, and to the knowledge of the Borrower, its directors, officers, employees, and agents
are, in compliance in all material respects with the PATRIOT Act, and any other applicable terrorism and money laundering laws, rules,
regulations, and orders.

 

7.8            Anti-Corruption
Laws and Sanctions. The Borrower has implemented and maintains in effect policies and procedures reasonably designed to ensure
compliance in all material respects by the Borrower and its directors, officers, employees, and agents with Anti-Corruption Laws and applicable
Sanctions and the Borrower is, and to the knowledge of the Borrower, its directors, officers, employees, and agents are, in compliance
with Anti-Corruption Laws and applicable Sanctions in all material respects. The Borrower is not, and to the knowledge of the Borrower,
no director, officer, employee of the Borrower, or any agent of the Borrower that will act in any capacity in connection with or benefit
from the Loan, is a Sanctioned Person. No use of proceeds of the Loan by the Borrower or other transaction contemplated by this Note will
violate any Anti-Corruption Law or applicable Sanctions.

 

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

 

    	 	16	 

     

    

 

7.10            Ownership
of Property; Liens. The Borrower has fee simple title to, or a valid leasehold interest in, all of its real property, and good
title to, all of its other property, and none of such property is subject to any Lien except as permitted by Section 9.2.

 

7.11            Portfolio
Documents. With respect to the Exela Credit Agreement, other than the amendments, supplements or other modifications (x) identified
below, (y) subsequent to the date hereof, in connection with the transactions contemplated by the Exchange Documents or (z) subsequent
to the date hereof, as permitted (in the cases of clauses (y) or (z) above) under Section 9.12 hereof, since July 12,
2017 there have been and will be no other amendments, restatements, supplements or other modifications to the Exela Credit Agreement entered
into by Exela Intermediate, the financial institutions identified therein and/or the administrative agent thereunder.

 

Exela Credit Agreement

 

(a)            First
Amendment to First Lien Credit Agreement, dated as of July 13, 2018, among Exela Intermediate Holdings LLC, Exela Intermediate, the
subsidiary loan parties party thereto, the lenders party thereto, Royal Bank of Canada, as administrative agent, and RBC Capital Markets,
as lead arranger and bookrunner

 

(b)            Second
Amendment to First Lien Credit Agreement, dated as of April 16, 2019, among Exela Intermediate Holdings LLC, Exela Intermediate,
the subsidiary loan parties party thereto, the lenders party thereto, Royal Bank of Canada, as administrative agent, and RBC Capital Markets,
as lead arranger and bookrunner

 

(c)            Agency
Assignment Agreement, dated as of May 18, 2020, by and among Royal Bank of Canada and Wilmington Savings Fund Society, FSB, and acknowledged
and agreed by Exela Intermediate Holdings LLC, Exela Intermediate and the subsidiary loan parties party thereto

 

(d)            Third
Amendment to First Lien Credit Agreement and First Amendment to Collateral Agency and Security Agreement (First Lien), dated as of May 18,
2020, by and among Exela Intermediate Holdings LLC, Exela Intermediate, the subsidiary loan parties party thereto and Wilmington Savings
Fund Society, FSB

 

With respect to the Exela Indenture, other than the amendments,
supplements or other modifications (x) identified below, (y) subsequent to the date hereof, in connection with the transactions
contemplated by the Exchange Documents or (z) subsequent to the date hereof, as permitted (in the cases of clauses (y) or (z) above)
under Section 9.12 hereof, since July 12, 2017 there have been and will be no other amendments, restatements, supplements or
other modifications thereto entered into by Exela Intermediate and Exela Finance Inc. and the trustee thereunder.

 

Exela Indenture

 

(a)            First
Supplemental Indenture, dated as of July 12, 2017, among Exela Intermediate, Exela Finance Inc., the subsidiary guarantors party
thereto and the trustee thereunder

 

    	 	17	 

     

    

 

(b)            Second
Supplemental Indenture, dated as of May 20, 2020, among Merco Holdings, LLC, Exela Intermediate, Exela Finance Inc. and the trustee
thereunder

 

7.12          Taxes;
ERISA.

 

(a)            The
Borrower has filed all material Federal, state, and other material tax returns that are required to be filed and has paid all material
taxes shown thereon to be due, together with applicable interest and penalties, and all other material taxes, fees, or other charges imposed
on it or any of its property by any Governmental Authority (except those that are currently being contested in good faith by appropriate
proceedings and with respect to which reserves in conformity with GAAP have been provided on the books of the Borrower). To the knowledge
of the Borrower, no material tax Lien has been filed, and no material claim is being asserted, with respect to any such tax, fee, or other
charge.

 

(b)            ERISA.
The Borrower does not, and does not have any ERISA Affiliates that, maintain or contribute to, or have any obligation (contingent or otherwise)
to contribute to, any Plan. The assets of the Borrower are not treated as “plan assets” for purposes of Section 3(42)
of ERISA.

 

7.13          Margin
Regulations. The Borrower is not engaged in the business of extending credit for the purpose of purchasing or carrying Margin Stock,
and no proceeds of the Loan will be used to purchase or carry any Margin Stock or to extend credit to others for the purpose of purchasing
or carrying any Margin Stock.

 

7.14          Investment
Company Act. The Borrower is not, nor is it required to be registered as an “investment company” under the Investment
Company Act of 1940, as amended.

 

7.15          Accuracy
of Information, Etc. The Borrower has disclosed to the Noteholder in writing all agreements, instruments, and limited liability company
or other restrictions to which it or any of its Subsidiaries is subject, and all other matters known to it, that, individually or in the
aggregate, has had or could reasonably be expected to have a Material Adverse Effect. No statement or information contained in this Note,
any other Loan Document, or any other document, certificate, or statement furnished by or on behalf of the Borrower to the Noteholder
pursuant to the terms of this Note or any Loan Document, for use in connection with the transactions contemplated by this Note or the
other Loan Documents, when taken as a whole, contained, any untrue statement of a material fact or omitted to state a material fact necessary
to make the statement contained herein or therein not materially misleading in light of the circumstances under which such statements
were made (in each case, after giving effect to all supplements and updates thereto from time to time).

 

    	 	18	 

     

    

 

7.16          Collateral
Documents. The Security Agreement and the Securities Account Control Agreement creates in favor of the Noteholder a legal, valid,
continuing, and enforceable security interest in the Collateral, the enforceability of which is subject to applicable bankruptcy, insolvency,
reorganization, moratorium, or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless
of whether considered in a proceeding in equity or at law. The financing statements, releases and other filings are in appropriate form
and have been or will be filed in accordance with Section 4.3 of the Security Agreement. Upon such filings and/or the obtaining of
 “control” (as defined in the Uniform Commercial Code), the Noteholder will have a perfected Lien on, and security interest
in, to and under all right, title, and interest of the grantors thereunder in all Collateral that may be perfected by filing, recording,
or registering a financing statement or analogous document (including without limitation the proceeds of such Collateral subject to the
limitations relating to such proceeds in the Uniform Commercial Code) or by obtaining control, under the Uniform Commercial Code (in effect
on the date this representation is made) in each case prior and superior in right to any other Person, except for Liens permitted under
Section 9.2.

 

7.17          Solvency.
Each of Holdings and the Borrower is, and after giving effect to the incurrence of all Debt and obligations incurred in connection herewith
and the transactions contemplated hereby will be, Solvent.

 

7.18          Compliance
with Constitutive Documents. The Borrower is in compliance with all covenants and provisions of its Constitutive Documents. The Borrower
will use the proceeds of the Loans only for such purposes as are permitted by its respective Constitutive Documents.

 

7.19          Portfolio.

 

(a)            The
corporate organization chart of the Parent, Holdings, the Borrower and their respective Subsidiaries, if any, is set forth in Schedule
7.19(a) and is true, complete and accurate.

 

(b)            The
Portfolio Investments as of the Closing Date are set forth in Schedule 7.19(b) hereto (as such Schedule shall be updated by the Borrower
solely to reflect each Portfolio Investment Acquired or repaid in full (as and when the same occurs)) and, together with the Portfolio
Investments acquired after the Closing Date, are legally and beneficially owned by the Borrower. The amount, type, issuer and investment
classification with respect to each Portfolio Investment is set forth in Schedule 7.19(b) hereto (as updated from time to time as
herein provided). Each Portfolio Investment is evidenced by appropriate Portfolio Documents evidencing the Borrower as owner thereof.
Schedule 7.19(b) hereto sets forth for each Portfolio Investment the record owner thereof and whether any of the foregoing is held
in a securities account. Upon request by the Noteholder, the Borrower shall promptly provide copies of Portfolio Documents for the Portfolio
Investments to the Noteholder.

 

(c)            Other
than the requirements for assignment of the Exela Term Loans under Sections 9.04 and 9.24 of the Exela Credit Agreement, no Portfolio
Document relating to any Portfolio Investment contains or may contain (i) provisions prohibiting or restricting pledges or assignments
of the Portfolio Investment or (ii) any “change of control,” “anti-assignment” or similar provisions which
would or may be triggered upon the exercise by the Noteholder of its rights to foreclose on the Collateral and would prevent, restrict
or adversely affect the realization by the Noteholder of the pledges of such Collateral or the exercise of rights or remedies relating
to the same.

 

    	 	19	 

     

    

 

(d)            No
Material Loan Event has occurred and is continuing in respect of any Portfolio Investment.

 

(e)            The
Borrower has complied and will comply with all transfer restrictions, consent requirements and any other requirements under the Portfolio
Documents relating to each Acquisition of a Portfolio Investment. On or prior to the date an Advance is made to fund each Portfolio Investment
Acquisition, the Borrower will deliver an officer’s certificate to the Noteholder (i) certifying to and attaching true, correct
and complete copies of each such consent, if any, and evidence of the Borrower’s satisfaction of such transfer restrictions and
other requirements and (ii) certifying without qualification that the Borrower has satisfied this Section 7.19(e) in all
respects, such officers’ certificate and attachments to be reasonably satisfactory to the Noteholder.

 

8.            Affirmative
Covenants. Until all amounts outstanding under this Note have been paid in full, the Borrower
shall:

 

8.1            Maintenance
of Existence. (a) Preserve, renew, and maintain in full force and effect its organizational existence and (b) take all reasonable
action to maintain all rights, privileges, and franchises necessary or desirable in the normal conduct of its business, and, in the case
of clause (b) above, except to the extent that failure to do so could not reasonably be expected to have a Material Adverse Effect.

 

8.2            Compliance.
(a) Comply with all Laws applicable to it and its business, except where the failure to do so could not reasonably be expected to
have a Material Adverse Effect, and (b) maintain in effect and enforce policies and procedures designed to achieve compliance in
all material respects by the Borrower and its directors, officers, employees and agents with Anti-Corruption Laws and applicable Sanctions.

 

8.3            Payment
Obligations. Pay, discharge, or otherwise satisfy at or before maturity or before they become delinquent, as the case may be, all
its material obligations of whatever nature, except where the amount or validity thereof is currently being contested in good faith by
appropriate proceedings, and reserves in conformity with GAAP with respect thereto have been provided on its books.

 

8.4            Notice
of Events of Default. As soon as possible and in any event within three (3) Business Days after it becomes aware, notify the
Noteholder in writing, (a) of any Event of Default that has occurred, which notice shall include the nature and extent of such Event
of Default and the action, if any, it has taken or proposes to take with respect to such Event of Default; or (b) of any reporting
or notice received as a holder of the Exela Notes and/or the Exela Term Loans and copies of such reporting or notice if received in writing,
or (c) of any development or event with respect to the Borrower, the Loan Documents or any Portfolio Investment that has had or could
reasonably be expected to have a Material Adverse Effect. Each notice pursuant to this Section 8.4 shall be accompanied by a statement
of an authorized officer of the Borrower setting forth details of the occurrence referred to therein.

 

    	 	20	 

     

    

 

8.5          Maintenance
of Property; Insurance. Maintain and preserve all of its property useful and necessary in its business in good working order and condition,
ordinary wear and tear excepted; and maintain insurance (to the extent reasonably prudent (e.g., after giving effect to a cost-benefit
analysis) in any material respect) with respect to its business with financially sound and reputable insurance companies that are not
Affiliates of the Borrower, in such amounts and covering such risks as are usually insured against by similar companies engaged in the
same or a similar business.

 

8.6          Inspection
of Property’ Books and Records; Discussions. Keep proper books of records and accounts, in which full, true, and correct entries
in conformity with GAAP and all applicable Law shall be made of all dealings and transactions and assets in relation to its business and
activities, and permit the Noteholder to visit and inspect any of its properties and examine and make abstracts from any of its books
and records, in each case, at reasonable times and on reasonable advance notice (not more frequently than once per fiscal year unless
an Event of Default has occurred and is continuing hereunder), and to discuss its business operations, properties, and financial and other
condition with its senior management officers and (not more frequently than once per fiscal year unless an Event of Default has occurred
and is continuing hereunder) its independent certified public accountants, in each case at reasonable times and on reasonable advance
notice.

 

8.7          Use
of Proceeds. Use the proceeds of the Loan and the Parent Investments solely to purchase Exela Notes and Exela Term Loans in accordance
with the terms hereof.

 

8.8          Existence
of Borrower, Etc.

 

(a)          The
Borrower shall hold itself out and identify itself, as a separate and distinct legal entity under its own name and not as a division or
part of any other Person. Unless it provides the Noteholder with at least ten (10) days' (or such shorter period agreed to by the
Noteholder) prior written notice, the Borrower shall keep its principal place of business at the address specified on Schedule 8.8 hereto.
The Borrower will at all times have at least one Independent Manager.

 

(b)          The
Borrower shall:

 

(i)            do
or cause to be done all things necessary to preserve and keep in full force and effect its existence, rights (charter and statutory) and
franchises, and obtain and preserve its qualification to do business in each jurisdiction in which such qualification is or shall be necessary
to protect the validity and enforceability of the Loan Documents;

 

(ii)            file
its own tax returns, if any, as may be required under applicable law, to the extent (1) not part of a consolidated group filing a
consolidated return or returns or (2) not treated as a disregarded entity for tax purposes and if it is not otherwise required to
file a separate tax return, and pay any taxes so required to be paid under applicable law;

 

    	 	21	 

     

    

 

(iii)            not
commingle its assets with assets of any other Person, and not divert the assets of the Borrower to any other Person or for any other use
other than the use of the Borrower;

 

(iv)            conduct
its business in its own name and strictly comply with all organizational formalities necessary to maintain its separate existence (and
the Borrower hereby represents that all such formalities have been complied with since the Borrower's formation), including, but not limited
to, holding all regular and special member meetings appropriate to authorize all action, keeping separate and accurate minutes of such
meetings, and passing all resolutions or consents necessary to authorize actions taken or to be taken, in each case, as required by the
Borrower’s Constitutive Documents or applicable Law;

 

(v)            maintain
its own separate books and records and deposit or securities accounts separate from any other Person;

 

(vi)            maintain
separate financial statements (it being understood that, if the Borrower's financial statements are part of a consolidated group with
its Affiliates, then any such consolidated statements shall contain a note indicating the Borrower's separateness from any such Affiliates
and that its assets and credit are not available to pay the debts of such Affiliate);

 

(vii)           pay
its own liabilities only out of its own funds;

 

(viii)          except
as specifically contemplated by the Loan Documents, maintain an arm's-length relationship with its Affiliates, including its members,
and not permit any material transactions between the Borrower and any Affiliate, including its members, without the unanimous affirmative
vote of each of its members and the Independent Manager; provided, for the avoidance of doubt, that, no manager or member, nor any other
Person may vote on or otherwise authorize the taking of any such actions unless, in each case, there is at least one (1) Independent
Manager then serving (and available to vote) in such capacity in accordance with the terms of this Agreement;

 

(ix)            at
all times hold itself out to the public as a legal entity separate and apart from its members and any other Person;

 

(x)            not
hold out its credit or assets as being available to satisfy the obligations of any other Person;

 

(xi)           ensure
that, to the extent that the Borrower and any of its members, or Affiliates have offices in shared or contiguous space, there shall be
fair and appropriate allocation of overhead costs (including rent) among them, and each such entity shall bear its fair share of such
costs;

 

    	 	22	 

     

    

 

(xii)            ensure
that to the extent that the Borrower contracts or does business with vendors or service providers where the goods and services provided
are partially for the benefit of any or more other Persons, the costs incurred in so doing shall be fairly allocated to or among such
entities for whose benefit the goods and services are provided, and each such entity shall bear its fair share of such costs;

 

(xiii)            use
separate stationery, invoices and checks and not those of any other Person (unless such Person is clearly designated as being the Borrower's
agent on such stationery, invoices and checks, as applicable);

 

(xiv)            not
pledge its assets or otherwise incur any lien as security for the obligations of any other Person;

 

(xv)            correct
any known misunderstanding regarding its separate identity;

 

(xvi)            is
and intends to remain solvent and shall pay its debts and liabilities from its then available assets (including a fairly allocated portion
of any personnel and overhead expenses that it shares with any Affiliate) from its assets as the same shall become due, and shall maintain
adequate capital for the normal obligations reasonably foreseeable in a business of its size and character and in light of its contemplated
business operations (provided, however, the forgoing shall not require any member of to make additional capital contributions to such
entity);

 

(xvii)          pay
its operating expenses and liabilities from its own assets;

 

(xviii)         maintain
a sufficient number of employees in light of its contemplated business operations, which may be none, and pay the salaries of its own
employees, if any, from its own assets; provided, however, to the extent that the Borrower shares the same officers or other employees
as any of its members, managers, or Affiliates, the salaries of and the expenses related to providing benefits to such officers and other
employees shall be fairly allocated among such entities, and each such entity shall bear its fair share of the salary and benefit costs
associated with all such common officers and employees;

 

(xix)           except
as contemplated by the Loan Documents, ensure that no Affiliate of the Borrower will guaranty debts of the Borrower; and

 

(xx)            promptly
following request from the Noteholder, notify the Noteholder of any change in the information provided in any Loan Party's Beneficial
Ownership Certification (if any) that would result in a change to the list of beneficial owners identified therein.

 

    	 	23	 

     

    

 

(c)            Notwithstanding
any other provision of this Note and any provision of law that otherwise so empowers the Borrower, the Manager, the Member, any Officer
or any other Person, so long as any Obligation is outstanding, neither the Manager, the Member nor any Officer nor any other Person shall
be authorized or empowered on behalf of the Borrower to, nor shall they permit the Borrower to, and the Borrower shall not, without the
prior unanimous written consent of the Member and all Independent Managers, take any Material Action; provided, however,
that, so long as any Obligation is outstanding, the Member may not authorize the taking of any Material Action, unless there is at least
one Independent Manager then serving in such capacity, all Independent Managers have given prior written consent to such action and the
Noteholder has been given ten (10) Business Days’ prior written notice of such action. Terms defined in this paragraph (c) and
in paragraph (d) below that are not defined herein shall the meanings ascribed to such terms in the Limited Liability Company Agreement
of the Borrower, dated as of November 17, 2021 (as in effect on the Closing Date).

 

(d)            Holdings
shall not amend or alter or otherwise modify or remove all or any part of Sections 2.1(c), 3.1(A), 3.1(B), 4.1(i), 4.5, 6.2 or Articles
V, IX, X and XI of the Constitutive Documents of the Borrower (collectively, the “SPE Provisions”), or otherwise amend
or alter or otherwise modify or remove any other provision of the Constitutive Documents of the Borrower that would be inconsistent with
the SPE Provisions, in each case without the prior written consent of the Noteholder.

 

(e)            The
Borrower shall take all other actions necessary to maintain the accuracy of the factual assumptions set forth in the legal opinions of
Willkie, Farr & Gallagher LLP, as special counsel to the Borrower, issued in connection with the Loan Documents and relating
to the issues of substantive consolidation of the Portfolio Investments.

 

8.9          Financial
Reporting and Projections. The Borrower shall deliver or caused to be delivered the following financial reporting:

 

(a)            substantially
contemporaneously with delivery thereof under the terms of the Portfolio Documents, the consolidated balance sheets of the Parent and
its Subsidiaries and the related consolidated statements of operations, cash flows and owner’s equity required to be delivered under
the Portfolio Documents, together with a Compliance Certificate in the form of Exhibit 8.9 hereto signed by the principal executive
officer or the principal financial officer of the Parent or the Borrower (i) certifying as to whether there exists a Default or Event
of Default on the date of such certificate and, if a Default or Event of Default then exists, specifying the details thereof and the action
which the Borrower has taken or proposed to take with respect thereto and (ii) the delivery of the financial reports hereunder.

 

(b)            promptly
following the request therefor, such other information regarding the results of operation, business affairs and financial condition of
the Parent, Holdings, the Borrower, Exela Intermediate Holdings LLC or Exela Intermediate and its Subsidiaries as the Noteholder may reasonably
request.

 

8.10          Collateral
Account. Prior to Closing Date, the Borrower shall open a securities account with B. Riley Securities, Inc. (the “Collateral
Account”) and such Collateral Account shall be subject to the Securities Account Control Agreement at all times from and after
the Closing Date. Promptly upon the Acquisition of any Portfolio Investment consisting of Exela Notes or any Pledged Debt, such Portfolio
Investment, all Pledged Debt and all Proceeds thereof shall be immediately deposited and thereafter held in such Collateral Account.

 

    	 	24	 

     

    

 

8.11           Further
Assurances. Upon the request of the Noteholder, promptly execute and deliver such further instruments and do or cause to be done such
further acts as the Noteholder reasonably determines may be necessary or advisable to carry out the intent and purposes of this Note or
any Collateral Document.

 

8.12           Mandatory
Exchange. Prior to the applicable deadline for participating in the exchanges contemplated by the Exchange Documents, the Borrower
shall, in accordance with the terms of the Exchange Documents, tender for exchange any Exela Notes and Exela Term Loans owned by it as
of such deadline (other than any Exela Notes and Exela Term Loans that were validly tendered for exchange prior to Borrower’s Acquisition
thereof), and the Borrower shall not withdraw or rescind its participation in such exchange (including in respect of the Exela Notes and
Exela Term Loans that were validly tendered for exchange prior to Borrower’s Acquisition thereof) prior to the consummation thereof.

 

8.13           The
Exchange. Upon consummation of any exchange in respect of the “Exchange Offer” or “Term Loan Exchange Offer,”
as applicable (the “Exchange”) contemplated by the Exchange Documents, the Borrower shall receive replacement Portfolio
Investments and cash having a total fair value, as determined by the Borrower in good faith, equal to or greater than those Portfolio
Investments exchanged therefor.

 

9.            Negative
Covenants. Until all amounts outstanding under this Note have been paid in full, the Borrower
shall not:

 

9.1            Indebtedness.
Incur, create or assume any Debt other than Debt evidenced under this Note.

 

9.2            Liens.
Incur, create, assume or suffer to exist any Lien on any of its property or assets, whether now owned or hereafter acquired by it or
on any income or rights in respect of any thereof, except (i) with respect to the Collateral, security interests, liens and
other encumbrances created pursuant to the Loan Documents, (ii) Liens for taxes, assessments, other governmental charges that
are not delinquent or are being properly contested in good faith by appropriate proceedings and, in each case, in respect of which
adequate reserves are being maintained on the books of the Borrower in accordance with GAAP, (iii) statutory Liens in favor of
a bank, custodian or other depositary institution arising in the ordinary course of business as a matter of law encumbering deposits
(including the right of set-off), and (iv) immaterial, non-consensual Liens with lien priority junior to Lien granted to the
Noteholder on assets (other than Liens on any of the Portfolio Investments or Proceeds thereof from time to time) arising in the
ordinary course of business in connection with activities not prohibited hereunder and not securing Debt for borrower
money.

 

9.3            Limitations
on Investments. Make or enter into any agreement to make any Investments other than Portfolio Investments.

 

    	 	25	 

     

    

 

9.4            Line
of Business. Enter into any business, directly or indirectly, except for the business in which the Borrower is engaged (or proposed
to be engaged, i.e., investing in / purchasing the Portfolio Investments) on the date of this Note.

 

9.5            Mergers.
Merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with it.

 

9.6            Limitation
on Dispositions. Dispose of any, all or substantially all of its property, whether now owned or hereafter acquired other than the
Exchange pursuant to and in accordance with the terms of the applicable Exchange Documents.

 

9.7            Limitation
on Restricted Payments. Declare or pay any dividend on, or make any payment on account of, or set apart assets for a sinking or other
analogous fund for, the purchase, redemption, defeasance, retirement, or other acquisition of, any Equity Interests of the Borrower, whether
now or hereafter outstanding, or make any other distribution in respect thereof, either directly or indirectly, whether in cash or property.

 

9.8            [Reserved]

 

9.9            Limitation
on Transactions With Affiliates. Enter into or be a party to any transaction including any purchase, sale, lease, or exchange of property,
the rendering of any service, or the payment of any management, advisory, or similar fees, with any Affiliate unless (a) such transaction
is (i) otherwise not prohibited by the terms of this Note; and (ii) on fair and reasonable terms no less favorable to the Borrower,
than those that would have been obtained in a comparable transaction on an arm’s length basis from an unrelated Person or (b) such
transaction is already in effect as of the date of this Note.

 

9.10         Borrower
as Bankruptcy Remote Entity.

 

(a)          The
Borrower shall not:

 

(i)            sell,
transfer, assign, participate, exchange or otherwise dispose of, or pledge, mortgage, hypothecate or otherwise encumber (by security interest,
lien (statutory or otherwise), preference, priority or other security agreement or preferential arrangement of any kind or nature whatsoever
or otherwise) (or permit such to occur or suffer such to exist), any asset (including the Collateral), except as permitted or required
by the Loan Documents (including for any Liens permitted under Section 9.2 or pursuant to the terms of the applicable Exchange Documents);

 

(ii)            claim
any credit on, or make any deduction from, the principal or interest payable or amounts distributable in respect of the Loans (other than
amounts withheld in accordance with the Code or any other applicable law) or assert any claim against any present or future Noteholder
by reason of the payment of any taxes levied or assessed upon any part of the Collateral (other than taxes levied or assessed in respect
of amounts required to be deducted or withheld from the principal or interest payable in respect of the Loan obligations);

 

    	 	26	 

     

    

 

(iii)            (A) incur
or assume or guarantee any indebtedness or any contingent obligations, other than the Obligations and the other agreements and transactions
expressly contemplated hereby and thereby or (B) issue any additional securities (other than the issuance of its equity on the date
hereof), it being understood that receipt of additional capital contributions by the Borrower from Holdings (without issuance of additional
securities or interests in the Borrower) is not prohibited by this clause (B);

 

(iv)            (A) permit
the validity or effectiveness of the Collateral Documents or any other Loan Document or any Grant thereunder to be impaired, or permit
the liens under the Loan Documents to be amended, hypothecated, subordinated, terminated or discharged, or permit any Loan Party to be
released from any covenants or obligations under any Loan Document, except as may be expressly permitted hereby, (B) permit any lien,
charge, adverse claim, security interest, mortgage or other encumbrance (including any preference, priority or other security agreement
or preferential arrangement of any kind or nature whatsoever or otherwise, other than the liens under any the Loan Documents) to be created
on or extend to or otherwise arise upon or burden any of its assets, or any income or profits therefrom or on any Portfolio Investments,
Collateral or any part thereof, any interest therein or the Proceeds thereof, or (C) take any action that would cause the liens under
the Loan Documents not to constitute a valid perfected security interest in the Collateral that is of First Priority, free of any adverse
claim or the legal equivalent thereof, as applicable, except, in each case, for Liens permitted under Section 9.2 and as otherwise
may be expressly permitted hereby (or in connection with a disposition of Collateral required hereby);

 

(v)            [reserved];

 

(vi)            [reserved];

 

(vii)          [reserved];

 

(viii)          maintain
any deposit or securities accounts other than the Collateral Account;

 

(ix)            change
its name without (A) receiving the prior written consent of the Noteholder, (B) delivering to the Noteholder notice thereof
and (C) receiving an Opinion of Counsel that such name change will not adversely affect the Noteholder’s lien or the interest
under the Collateral Documents of the Noteholder;

 

(x)            fail
to pay any tax, assessment, charge or fee with respect to the Collateral, or fail to defend any action, if such failure to pay or defend
will adversely affect the priority or enforceability of the lien over the Collateral created by the Loan Documents;

 

    	 	27	 

     

    

 

(xi)            other
than the Loan Documents, enter into any agreement or contract with any Person unless such contract or agreement contains "limited
recourse" and "non-petition" provisions, (x) which limited recourse provisions provide that the obligations of the
Borrower are limited recourse obligations, payable solely from the Collateral in accordance with the terms of this Note and the other
Loan Documents and (y) which non-petition provisions provide that, prior to the date that is one year and one day after all Obligations
have been paid in full (other than contingent obligations for which no claim has been asserted and indemnity and contractual obligations
which by their terms survive termination of this Note or any other Loan Document) (or, if longer, the applicable preference period under
applicable insolvency law), such Person shall not take any action or institute any proceeding against the Borrower under any Debtor Relief
Law applicable to it or which would be reasonably likely to cause it to be subject to, or seek protection of, any such Debtor Relief Law;
provided that such Person shall be permitted to become a party to and to participate in any proceeding or action under any such Debtor
Relief Law that is initiated by any other Person other than one of its Affiliates;

 

(xii)            amend
any Loan Document other than in accordance with Section 13.11;

 

(xiii)           amend
any limited recourse or non-petition provisions of any contract or agreement to which the Borrower is party;

 

(xiv)           acquire
any assets or take any action that would require it to register as an "investment company" under the Investment Company Act;

 

(xv)            enter
into any transaction other than on arm's length terms and at market rates, as determined in good faith by the Borrower, other than as
expressly permitted pursuant to this Note and the other Loan Documents;

 

(xvi)            have
any Subsidiaries;

 

(xvii)          make
any change in the accounting principles underlying the financial statements delivered pursuant to this Note except for changes mandated
by GAAP without the prior written consent of the Noteholder (which consent shall not be unreasonably withheld, conditioned or delayed);
or

 

(xviii)         pay
distributions on account of or relating to any equity interests in the Borrower.

 

9.11          No
Modification of Constitutive Documents. The Borrower shall not amend, or permit the amendment of, its Constitutive Documents in a
manner adverse to the Noteholder without the prior written consent of the Noteholder.

 

    	 	28	 

     

    

 

9.12            Modification
of Portfolio Documents. The Borrower shall not consent to (nor engage in any activities in support of) any modification of the terms
or conditions of the Exela Notes, the Exela Term Loans or any Portfolio Document (other than the Exchange Documents) relating thereto
that are materially adverse to the Noteholder without the prior written consent of the Noteholder; provided, however, that notwithstanding
the foregoing to the contrary, in no event shall the Borrower consent to (or engage in any activities in support of) any modification
under clauses (i) through (ix) of Section 9.09(b) of the Exela Credit Agreement or clauses (1) through (9) of
Section 9.02 of the Exela Indenture without the prior written consent of the Noteholder; provided, that, notwithstanding the foregoing,
the Borrower may exchange the Exela Notes and/or the Exela Term Loans for replacement Exela Notes and/or replacement Exela Term Loans
pursuant to the exchange contemplated by, and pursuant to the terms and conditions set forth in, the applicable Exchange Documents. The
Borrower shall not consent to (nor engage in any activities in support of) any modification of the terms or conditions of the Exchange
Documents without the prior written consent of the Noteholder. Upon consummation of the exchange described in each applicable Exchange
Document, the terms, economics, provisions and conditions of each of the resulting Exela Credit Agreement and the resulting Exela Indenture
shall substantially conform to or comply with the terms, economics, provisions and conditions encompassing, descriptive of or relating
to the same as set forth in such Exchange Document as in effect on October 27, 2021.

 

10.          Events
of Default. The occurrence and continuance of any of the following shall constitute an “Event
of Default” hereunder:

 

10.1          Failure
to Pay. The Borrower fails to pay (a) any principal amount of the Loan when due or (b) any interest, fees or any other Obligations
under any of the Loan Documents when due and such default shall continue unremedied for a period of ten (10) Business Days.

 

10.2          Breach
of Representations and Warranties. Any representation, warranty, certification, or other statement of fact made or deemed made by
any Loan Party to the Noteholder hereunder or in the other Loan Documents or any amendment or modification hereof or thereof or waiver
hereunder or thereunder is incorrect in any material respect on the date as of which such representation or warranty was made or deemed
made.

 

10.3          Breach
of Covenants. The Borrower or, as applicable, Holdings fails to observe or perform (a) any covenant, condition, or agreement
contained in Sections 7.19, 8.4, 8.7, 8.8, 8.10, 8.12 or 8.13 or Section 9 or (b) any other covenant, obligation, condition,
or agreement contained in this Note or any Collateral Document, other than those specified in clause (a) above or in respect of Section 10.1,
and such failure continues for thirty (30) days after written notice to the Borrower.

 

10.4          [Reserved].

 

10.5          Bankruptcy.

 

(a)            Any
of the Borrower or Holdings commences any case, proceeding, or other action (i) under any existing or future Law relating to bankruptcy,
insolvency, reorganization, or other relief of debtors, seeking to have an order for relief entered with respect to it, or seeking to
adjudicate it as bankrupt or insolvent, or seeking reorganization, arrangement, adjustment, winding-up, liquidation, dissolution, composition,
or other relief with respect to it or its debts or (ii) seeking appointment of a receiver, trustee, custodian, conservator, or other
similar official for it or for all or any substantial part of its assets, or the Borrower or Holdings makes a general assignment for the
benefit of its creditors;

 

    	 	29	 

     

    

 

(b)            There
is commenced against the Borrower or Holdings any case, proceeding, or other action of a nature referred to in Section 10.5(a) which
(i) results in the entry of an order for relief or any such adjudication or appointment or (ii) remains undismissed, undischarged,
or unbonded for a period of sixty (60) days;

 

(c)            There
is commenced against the Borrower or Holdings any case, proceeding, or other action seeking issuance of a warrant of attachment, execution,
or similar process against all or any substantial part of its assets which results in the entry of an order for any such relief which
has not been vacated, discharged, or stayed or bonded pending appeal within sixty (60) days from the entry thereof;

 

(d)            The
Borrower or Holdings takes any action directly in furtherance of, or indicates its consent to, approval of, or acquiescence in, any of
the acts set forth in Section 10.5(a), Section 10.5(b), or Section 10.5(c) above; or

 

(e)            The
Borrower or Holdings is generally not able to, or admits in writing its inability to, pay its debts as they become due.

 

10.6          ERISA.
(a) The Borrower establishes, maintains or contributes to, or has any contractual obligation (contingent or otherwise) to contribute
to, any Plan or Multiemployer Plan, (b) the assets of the Borrower are treated as “plan assets” for purposes of Section 3(41)
of ERISA or (c)(i) Borrower shall engage in any “prohibited transaction” (as defined in §406 of ERISA or §4975
of the Code) involving any Plan; (ii) any failure to satisfy the minimum funding standard (within the meaning of Sections §412
or §430 of the Code or §302 of ERISA) shall exist with respect to any Plan, or any Lien in favor of the PBGC or a Plan shall
arise on the assets of the Borrower or any ERISA Affiliate; (iii) a Reportable Event shall occur with respect to, or proceedings
shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to terminate, any Plan, which Reportable
Event or commencement of proceedings or appointment of trustee is reasonably likely to result in the termination of such Plan for purposes
of Title IV of ERISA; (iv) any Plan shall terminate for purposes of Title IV of ERISA; or (v) the Borrower or any ERISA Affiliate
shall reasonably be likely to, incur any liability in connection with a withdrawal from, or the insolvency or reorganization of, a Multiemployer
Plan; and in each case in clauses (a), (b) and (c)(i) through (c)(v) above, such event or condition, together with all
other such events or conditions, if any, could reasonably be expected to have a Material Adverse Effect.

 

    	 	30	 

     

    

 

10.7            Collateral
Documents; Loan Documents. (a) Any Collateral Document ceases for any reason to be valid, binding, and in full force and effect
or any Lien created by such Collateral Document ceases to be enforceable and of the same effect and priority purported to be created thereby,
other than as expressly permitted hereunder or thereunder; (b) any material provision of any Loan Document ceases for any reason
to be valid, binding, and in full force and effect, other than as expressly permitted hereunder or thereunder; (c) any Loan Party
contests in any manner the validity or enforceability of any provision of any Loan Document; (d) any Loan Party denies that it has
any or further liability or obligation under any provision of any Loan Document or purports to revoke, terminate, or rescind any provision
of any Loan Document; or (e) any Loan Party denies that it has any or further liability or obligation under any provision of any
Loan Document or purports to revoke, terminate, or rescind any provision of any Loan Document.

 

10.8            Change
of Control. Any Change of Control occurs.

 

10.9            Material
Adverse Effect. The occurrence of a Material Adverse Effect.

 

10.10           Material
Loan Event. The occurrence of a Material Loan Event.

 

10.11          Judgments.
One or more judgments or decrees shall be entered against the Borrower in an amount exceeding Two Hundred and Fifty Thousand Dollars ($250,000)
(to the extent not covered by insurance) and all of such judgments or decrees shall not have been vacated, discharged, waived or stayed
or bonded pending appeal within thirty (30) days from the entry thereof.

 

11.          Remedies.
Upon the occurrence of any Event of Default and at any time thereafter during the continuance of such Event of Default, the Noteholder
may, at its option, by written notice to the Borrower (a) declare the entire principal amount of the Loan, together with all accrued
and unpaid interest thereon, all fees payable hereunder and all other amounts payable under this Note and/or the Security Agreement, immediately
due and payable; and/or (b) exercise any or all of its rights, powers or remedies under this Note, the Collateral Documents or applicable
Law; provided, however, that if an Event of Default described in Section 10.5 shall occur, the principal of and accrued and
unpaid interest on the Loan and all the other fees and amounts hereunder shall become immediately due and payable without any notice,
declaration, or other act on the part of the Noteholder.

 

12.          Conditions
Precedent.

 

12.1            Closing
Date. The obligation of the Noteholder to make the Loan required to be made by it hereunder on the Closing Date is subject to the
satisfaction or the waiver by the Noteholder of the following conditions precedent:

 

(a)            The
Noteholder shall have received:

 

(i)            this
Note, duly executed and delivered by an authorized officer of the Borrower;

 

(ii)            the
Security Agreement, duly executed and delivered by an authorized officer of the Borrower and Holdings;

 

(iii)            the
Securities Account Control Agreement, duly executed and delivered by an authorized officer of the Borrower;

 

    	 	31	 

     

    

 

(iv)          in
form and substance satisfactory to the Noteholder, a certificate from each Loan Party, certified by an authorized officer of such Loan
Party, including:

 

(A)            a
certificate of incorporation, formation or organization, as applicable, of such Loan Party certified by the Secretary of State of the
State of in which such Loan Party is incorporated or formed, as applicable;

 

(B)            by-laws,
limited liability company agreement or limited partnership agreement, as applicable, of such Loan Party as in effect on the date on which
the resolutions referred to below were adopted;

 

(C)            resolutions
of the governing body of such Loan Party approving the transaction and each Loan Document to which it is or is to be a party, and of all
documents evidencing other necessary limited liability company action;

 

(D)            a
certification that the names, titles, and signatures of the officers of such Loan Party authorized to sign each Loan Document and other
documents to be delivered hereunder and thereunder are true and correct;

 

(E)            a
long-form good standing certificate for such Loan Party from the Secretary of State of the State in which such Loan Party was incorporated,
formed or organized, as applicable; and

 

(F)            a
certification of the matters set forth in subsections (c) and (d) below;

 

(v)          payment
of all fees required to be paid and payment of all reasonable out-of-pocket expenses for which invoices have been presented (including
the reasonable out-of-pocket fees and expenses of legal counsel), on or before the Closing Date; and

 

(vi)          (A) Uniform
Commercial Code (“UCC”) initial financing statements and other applicable documents under the laws of all necessary
or appropriate jurisdictions with respect to the perfection of Liens granted under the Collateral Documents as requested by the Noteholder;
and (B) copies of UCC, tax, judgment and pending suit, bankruptcy and fixture lien search reports, each as of a recent date, in all
necessary or appropriate jurisdictions and under all legal and tradenames of the Loan Parties, as requested by the Noteholder, indicating
that there are no prior Liens on the Collateral except as permitted under this Note or the applicable Collateral Documents;

 

    	 	32	 

     

    

 

(b)          The
Noteholder shall have also received the following Opinion Letters, each in form, scope and substance reasonably satisfactory to the Noteholder:

 

(i)            a
favorable written opinion of Willkie, Farr & Gallagher, LLP, counsel to the Loan Parties, addressed to the Noteholder and covering
such matters relating to the Loan Parties, the Loan Documents and the transactions contemplated herein and therein as the Noteholder shall
reasonably request; and

 

(ii)            a
favorable written opinion of Willkie, Farr & Gallagher, LLP, counsel to the Loan Parties, addressed to the Noteholder and covering
such matters relating to the status of the Borrower as a bankruptcy-remote entity and non-consolidation with Parent, as the Noteholder
shall reasonably request.

 

(c)            The
following transactions shall have been consummated, in each case on terms and conditions satisfactory to the Noteholder;

 

(i)            Holdings
shall have made a common equity investment in the Borrower of not less than the Parent Initial Investment, on term and conditions reasonably
satisfactory to the Noteholder.

 

(d)            The
Noteholder shall have received all documentation and other information required by bank regulatory authorities under applicable “know
your customer” and anti-money laundering rules and regulations, as requested by the Noteholder.

 

(e)            Each
of the representations and warranties made by each Loan Party in or pursuant to the Loan Documents shall be true and correct in all material
respects (except where such representations and warranties that are qualified by “materiality”, “in all material respects”,
 “Material Adverse Effect” or words of similar import, then such representations and warranties shall be true and correct in
all respects) on and as of the Closing Date.

 

(f)            No
Default or Event of Default shall have occurred and be continuing on such date or after giving effect to the Loan requested to be made
on the Closing Date.

 

12.2          Conditions
to the Purchase of any Portfolio Investment. The right of the Borrower to borrow an Advance on an Advance Date pursuant to Section 2
and to use the proceeds of any such Advance to purchase Portfolio Investments on any Acquisition Date is subject to the satisfaction or
the waiver by the Noteholder, on or prior to the proposed Advance Date, of the following conditions precedent:

 

(a)            Prior
to the Acquisition of the applicable Portfolio Investments, the Noteholder shall have received for Exela Notes, one (1) Business
Day and for Exela Term Loans, three (3) Business Days’ prior written notice of the proposed Acquisition, which notice identifies
(i) the Portfolio Investment to be Acquired, (ii) the proposed settlement date for such Acquisition (for Exela Notes) or the
proposed effective date of transfer / assignment (for Exela Term Loans), (iii) the principal amount of the Advance requested, (iv) the
purchase price for such Portfolio Investments to be Acquired, (v) the pro forma VWAP calculation for such Acquisition and (vi) the
amount, if any, of any additional Parent Investment to be made by Holdings prior to or simultaneously with the date of such proposed Advance;

 

    	 	33	 

     

    

 

(b)            The
additional Parent Investment has been made, and the Noteholder shall have received evidence satisfactory to the Noteholder that the additional
Parent Investment (if required) has been made prior to or simultaneously with the Advance relating to the Acquisition of additional Portfolio
Investments;

 

(c)            The
representations, warranties and covenant of the Borrower set forth in Section 7.19 hereof relating to the foregoing shall be true
and correct in all respects;

 

(d)            Other
than as set forth in clause (c) above, the representations and warranties made by each Loan Party set forth herein and in each other
Collateral Document shall be true and correct in all material respects on and as of the Advance Date (except where such representations
and warranties that are qualified by “materiality”, “in all material respects”, “Material Adverse Effect”
or words of similar import, then such representations and warranties shall be true and correct in all respects), except with respect to
those made only as of the Closing Date in which case such representations and warranties shall be true and correct;

 

(e)            No
Default or Event of Default shall have occurred and be continuing on the Advance Date, determined immediately prior to and immediately
after giving effect to the Advance;

 

(f)            The
purchase price in respect of the principal amount of any Portfolio Investment to be Acquired shall not be greater than par for such Portfolio
Investment as determined by the Noteholder in its reasonable discretion; and

 

(g)            The
Noteholder shall have a First Priority, perfected Lien on the subject Portfolio Investment and the other Collateral.

 

Notwithstanding anything to the contrary contained herein,
no Acquisition of Portfolio Investments shall be permitted if, as a result of such proposed Acquisition, the VWAP would exceed one hundred
percent (100%).

 

13.            Miscellaneous.

 

13.1          Notices.

 

(a)            All
notices, requests, or other communications required or permitted to be delivered hereunder shall be delivered in writing, in each case
to the address specified below or to such other address as such Party may from time to time specify in writing in compliance with this
provision:

 

		(i)	If to the Borrower:
	 	 	2701 East Grauwyler Road
	 	 	Irving, Texas 75061
	 	 	Attention: Legal Department
	 	 	Email:	legalnotices@exelatech.com and
	 	 	 	xcv@exelatech.com

 

    	 	34	 

     

    

 

With a copy to (which shall not constitute
notice):

 

Willkie Farr & Gallagher LLP

787 Seventh Ave.

New York NY 10019

Attn: Maurice Lefkort

Fax: (212) 728-8111

Email: mlefkort@willkie.com

 

	 	(ii) 	If to Holdings:
	 	 	 2701 East Grauwyler Road
	 	 	Irving, Texas 75061
	 	 	Attention: Legal Department
	 	 	Email:	legalnotices@exelatech.com and
	 	 		xcv@exelatech.com

 

With a copy to (which shall not constitute
notice):

 

Willkie Farr & Gallagher LLP

787 Seventh Ave.

New York NY 10019

Attn: Maurice Lefkort

Fax: (212) 728-8111

Email: mlefkort@willkie.com

 

	 	(iii)	If to the Noteholder:
	 	 	11100 Santa Monica Blvd., Ste 800
	 	 	Los Angeles, CA 90025
	 	 	Attn: General Counsel
	 	 	Telephone: (310) 966-1444
	 	 	Email: legal@brileyfin.com

 

With a copy to (which shall not constitute
notice):

 

Duane Morris LLP

1037 Raymond Blvd., Suite 1800

Newark, NJ 07102

Attn: James T. Seery

Telephone: (973) 424-2088

Email: jtseery@duanemorris.com

 

(b)          Notices
if (i) mailed by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been given when
received; and (ii) sent by email shall be deemed received upon the sender’s receipt of an acknowledgment from the intended
recipient (such as by “return receipt requested” function, as available, return email, or other written acknowledgment).

 

    	 	35	 

     

    

 

13.2          Expenses;
Indemnification.

 

(a)          The
Borrower shall reimburse the Noteholder on demand for all reasonable and documented out-of-pocket costs, expenses, and fees (including
reasonable and documented out-of-pocket expenses and fees of Duane Morris LLP and such other special or local counsel whose retention
is approved by the Borrower) incurred by the Noteholder in connection with the transactions contemplated hereby including the negotiation,
documentation, and execution of this Note and the Collateral Documents and the enforcement of the Noteholder’s rights hereunder
and thereunder.

 

(b)          The
Borrower agrees to indemnify and hold harmless the Noteholder and each of its Related Parties (each, an “Indemnified Party”)
from and against, any and all claims, damages, losses, liabilities, and related expenses (including the reasonable and documented out-of-pocket
fees, charges, and expenses of Duane Morris LLP, as counsel for the Indemnified Parties, and such other special or local counsel whose
retention is approved by the Borrower), incurred by any Indemnified Party or asserted against any Indemnified Party by any Person (including
the Borrower and Holdings) other than such Indemnified Party and its Related Parties arising out of, in connection with, or by reason
of:

 

(i)            the
execution or delivery of this Note and the Collateral Documents or any agreement or instrument contemplated in this Note or the Collateral
Documents, the performance by the parties thereto of their respective obligations under this Note or the Collateral Documents, or the
consummation of the transactions contemplated by this Note or the Collateral Documents;

 

(ii)            any
Loan or the actual or proposed use of the proceeds therefrom;

 

(iii)            any
actual or alleged presence or release of hazardous materials on or from any property currently or formerly owned or operated by the Borrower,
or any environmental liability related to the Borrower in any way; or

 

(iv)            any
actual or prospective claim, investigation, litigation, or proceeding relating to any of the foregoing, whether based on contract, tort,
or any other theory, whether brought by a third party or by the Borrower, and regardless of whether any Indemnified Party is a party thereto;

 

provided that, such indemnity shall not be
available to any Indemnified Party to the extent that such claims, damages, losses, liabilities, or related expenses (A) are determined
by a court of competent jurisdiction in a final non-appealable order to have resulted from the bad faith, gross negligence or willful
misconduct of such Indemnified Party, (B) [reserved] or (C) arise in connection with claims solely among the Indemnified Parties.
This Section 13.2 shall only apply to Taxes that represent losses, claims, damages, or similar charges arising from a non-Tax claim.

 

    	 	36	 

     

    

 

(c)            The
Borrower agrees, to the fullest extent permitted by applicable law, not to assert, and hereby waives, any claim against any Indemnified
Party, on any theory of liability, for special, indirect, consequential, or punitive damages (including, without limitation, any loss
of profits or anticipated savings), as opposed to actual or direct damages, resulting from this Note or the Collateral Documents or arising
out of such Indemnified Party’s activities in connection herewith or therewith (whether before or after the date of this Note).

 

(d)            All
amounts due under Section 13.2 shall be payable not later than two (2) Business Days after demand is made for payment by the
Noteholder.

 

(e)            The
Borrower agrees that will not settle, compromise, or consent to the entry of any judgment in any pending or threatened claim, action,
or proceeding in respect of which indemnification or contribution could be sought under Section 13.2 (whether or not any Indemnified
Party is an actual or potential party to such claim, action, or proceeding) without the prior written consent of the applicable Indemnified
Party, unless such settlement, compromise, or consent includes an unconditional release of such Indemnified Party from all liability arising
out of such claim, action, or proceeding.

 

13.3           Governing
Law. This Note, the Collateral Documents, and any claim, controversy, dispute, or cause of action (whether in contract or tort or
otherwise) based upon, arising out of, or relating to this Note, the Collateral Documents, and the transactions contemplated hereby and
thereby shall be governed by the laws of the State of New York.

 

13.4          Submission
to Jurisdiction.

 

(a)            The
Borrower hereby irrevocably and unconditionally (i) agrees that any legal action, suit, or proceeding arising out of or relating
to this Note or the Security Agreement may be brought in the courts of the State of New York or of the United States of America for the
Southern District of New York and (ii) submits to the exclusive jurisdiction of any such court in any such action, suit, or proceeding.
Final judgment against the Borrower in any action, suit, or proceeding shall be conclusive and may be enforced in any other jurisdiction
by suit on the judgment.

 

(b)            Nothing
in this Section 13.4 shall affect the right of the Noteholder to (i) commence legal proceedings or otherwise sue the Borrower
in any other court having jurisdiction over the Borrower or (ii) serve process upon the Borrower in any manner authorized by the
laws of any such jurisdiction.

 

13.5          Venue.
The Borrower irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it may now
or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Note or the Security Agreement
in any court referred to in Section 13.4 and the defense of an inconvenient forum to the maintenance of such action or proceeding
in any such court.

 

    	 	37	 

     

    

 

13.6          Waiver
of Jury Trial. THE BORROWER HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY RELATING TO THIS NOTE, THE SECURITY AGREEMENT, OR THE TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY, WHETHER BASED ON CONTRACT, TORT, OR ANY OTHER THEORY.

 

13.7          Integration.
This Note and the Collateral Documents constitute the entire contract between the Parties with respect to the subject matter hereof
and supersede all previous agreements and understandings, oral or written, with respect thereto.

 

13.8          Successors
and Assigns; Pledge of Note.

 

(a)            This
Note may not be assigned by the Noteholder to any other Person other than to (i) an Affiliate of the Noteholder or (ii) any
other Person (other than a natural person) in the business of making loans and other extensions of credit, provided, that, solely for
this sub-clause (a)(ii), so long as no Event of Default has occurred, no such assignment shall be made (A) to (x) any Person
identified by Holdings in writing to the Noteholder on or prior to the Closing Date as being a “disqualified Person”, (y) any
competitors of Parent or Exela Intermediate or Affiliates of such competitors (for the avoidance of doubt, a Person shall not be deemed
an Affiliate of a competitor solely because it provides debt financing to a competitor or Affiliate of a competitor) that are reasonably
identified by Borrower as being a “disqualified Person” after the Closing Date, or (z) any Affiliates of any such “disqualified
Person” that are reasonably identifiable by the Noteholder solely by reference to the name of such “disqualified Person”,
and (B) without the consent of the Borrower, which consent shall not be unreasonably withheld conditioned or delayed.

 

(b)            The
Borrower may not assign or transfer this Note or any of its rights hereunder without the prior written consent of the Noteholder.

 

(c)            This
Note shall inure to the benefit of, and be binding upon, the Parties and their permitted assigns.

 

(d)            The
Noteholder may pledge this Note and its rights under the Collateral Documents to any of its financing sources and lenders from time to
time, in each case, without the consent of the Borrower.

 

13.9          Waiver
of Notice. The Borrower hereby waives demand for payment, presentment for payment, protest, notice of payment, notice of dishonor,
notice of nonpayment, notice of acceleration of maturity, and diligence in taking any action to collect sums owing hereunder.

 

13.10          PATRIOT
Act. The Noteholder hereby notifies the Borrower that pursuant to the requirements of the PATRIOT Act and 31 C.F.R. § 1010.230
(the “Beneficial Ownership Regulation”), it is required to obtain, verify, and record information that identifies
the Borrower, which information includes the name and address of the Borrower and other information that will allow the Noteholder to
identify the Borrower in accordance with the PATRIOT Act and the Beneficial Ownership Regulation, and the Borrower agrees to provide
such information from time to time to the Noteholder upon the Noteholder’s reasonable request therefor.

 

    	 	38	 

     

    

 

13.11            Amendments
and Waivers. No term of this Note may be waived, modified, or amended except by an instrument in writing signed by both of the Parties.
Any waiver of the terms hereof shall be effective only in the specific instance and for the specific purpose given.

 

13.12            Headings.
The headings of the various Sections and subsections herein are for reference only and shall not define, modify, expand, or limit any
of the terms or provisions hereof.

 

13.13            No
Waiver; Cumulative Remedies. No failure to exercise, and no delay in exercising on the part of the Noteholder, of any right, remedy,
power, or privilege hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power,
or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power, or privilege.
The rights, remedies, powers, and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers, and privileges
provided by law.

 

13.14            Electronic
Execution. The words “execution,” “signed,” “signature,” and words of similar import in the Note
shall be deemed to include electronic or digital signatures or electronic records, each of which shall be of the same effect, validity,
and enforceability as manually executed signatures or a paper-based record-keeping system, as the case may be, to the extent and as provided
for under applicable law, including the Electronic Signatures in Global and National Commerce Act of 2000 (15 U.S.C. §§ 7001
to 7031), the Uniform Electronic Transactions Act (UETA), or any state law based on the UETA, including the New York Electronic Signatures
and Records Act (N.Y. State Tech. §§ 301 to 309).

 

13.15            Severability.
If any term or provision of this Note or any Collateral Document is invalid, illegal, or unenforceable in any jurisdiction, such invalidity,
illegality, or unenforceability shall not affect any other term or provision of this Note or such Collateral Document or invalidate or
render unenforceable such term or provision in any other jurisdiction.

 

13.16            Independence
of Covenants. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted
by any of such covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another
covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists.

 

    	 	39	 

     

    

 

13.17        SUBORDINATION

 

(a)            Anything
in this Note or the other Loan Documents to the contrary notwithstanding, the Borrower agrees for the benefit of the Noteholder that the
rights of Holdings to receive distributions or payments by or from the Borrower and in and to the Collateral, including any payment from
Proceeds of Collateral, shall be subordinate and junior to the rights of the Noteholder to receive payment in full in Cash of all Obligations,
including without limitation, the Loan (such subordinate and junior interests, "Subordinate Interests"), to the extent
and in the manner set forth in this Note, including as set forth in Section 6.2 and/or hereinafter provided. Upon the occurrence
of any Event of Default that has not been waived in accordance with the provisions hereof, and notwithstanding anything contained in herein
to the contrary, interest on and principal of and other amounts owing in respect of the Note and all other Obligations arising under or
in respect of any of the Loan Documents shall be paid in full in Cash before any payment or distribution is made to Holdings.

 

(b)            If
notwithstanding the provisions of this Note herein, Holdings shall have received any payment or distribution in respect of any Subordinate
Interests contrary to the provisions of this Note, then, unless and until either the Loan and all other Obligations arising under or in
respect of the Loan Documents (other than contingent obligations for which no claim has been asserted and other indemnity and contractual
obligations which by their terms survive termination of this Note or any other Loan Document) shall have been paid in full in Cash in
accordance with this Note, such payment or distribution shall be received and held in trust for the benefit of, and shall forthwith be
paid over and delivered to, the Noteholder; provided that, if any such payment or distribution is made other than in Cash, it shall be
held by the Noteholder as part of the Collateral and shall be subject in all respects (e.g., and may be foreclosed upon pursuant) to the
provisions of this Note, including this Section 13.17.

 

(c)            The
Borrower and Holdings each agrees with the Noteholder that neither the Borrower nor Holdings shall demand, accept, or receive any payment
or distribution in respect of such Subordinate Interests in violation of the provisions of this Note, including Section 9.7 or this
Section 13.17.

 

(d)            In
exercising any of its voting rights, rights to direct and consent or any other rights as the Noteholder under this Note, subject to the
terms and conditions of this Note, the Noteholder shall not have any obligation or duty to any Person or to consider or take into account
the interests of any Person and shall not be liable to any Person for any action taken by it or them or at its or their direction or any
failure by it or them to act or to direct that an action be taken, without regard to whether such action or inaction benefits or adversely
affects the Noteholder, the Borrower or any other Person, except for any liability to which the Noteholder may be subject to the extent
the same results from the Noteholder’s taking or directing an action, or failing to take or direct an action, in bad faith or in
violation of the express terms of this Note.

 

    	 	40	 

     

    

 

13.18            Confidentiality.
Noteholder agrees to maintain the confidentiality of all information relating to the Borrower or its businesses (a) provided to it
by or on behalf of the Borrower or any of its Affiliates pursuant to or in connection with the Loan Documents or (b) obtained by
Noteholder based on a review of the books and records of the Borrower; provided that nothing herein shall prevent any Noteholder from
disclosing any such information (i) to any other Noteholder, (ii) subject to an agreement containing a confidentiality provision
substantially the same as this provision, to any transferee, or prospective transferee, (iii) to its Related Parties (it being understood
that the Persons to whom such disclosure is made will be informed of the confidential nature of such information and instructed to keep
such information confidential); (iv) upon the request or demand of, or in connection with regulatory examinations and reviews conducted
by, any Governmental Authority having or purporting to have jurisdiction over Noteholder or its Affiliates, or to the extent required
in response to any order of any court or subpoena, or in response to any other Governmental Authority, or as shall otherwise be required
pursuant to any applicable Law, provided that, other than with respect to any such regulatory examination, to the extent permitted by
applicable law the Noteholder will use reasonable efforts to notify the Borrower any such disclosure pursuant to this clause (iv) as
far in advance as is reasonably practicable under the circumstances, (v) which has been publicly disclosed other than in breach of
this Agreement, (vi) in connection with the exercise of any rights or remedy hereunder or under any Loan Document or any action or
proceeding relating to this Note or any other Loan Document or the enforcement of rights hereunder or thereunder, (vii) in connection
with any litigation to which Noteholder may be a party, provided that to the extent permitted by applicable law the Noteholder will use
reasonable efforts to notify the Borrower any such disclosure pursuant to this clause (vii) as far in advance as is reasonably practicable
under the circumstances, and (viii) if, prior to such information having been so provided or obtained, such information was already
in Noteholder’s possession on a non-confidential basis without a duty of confidentiality to the Borrower being violated. Notwithstanding
any other provision of this Agreement or any other Loan Document, the provisions of this Section 13.18 shall survive with respect
to each Noteholder until the second anniversary of Noteholder ceasing to be a Noteholder hereunder.

 

[signature
page follows]

 

    	 	41	 

     

    

 

IN WITNESS WHEREOF, the Borrower has executed this
Note as of the date first written above.

 

	 	
    GP 2XCV LLC

	 	 
	 	By	/s/ Matt Brown       
	 	Name:  	Matt Brown
	 	Title:	Authorized Person

 

    	 	 	 

     

    

 

For the limited purposes of its agreement in Section 8.8(c),
Section 8.8(d), Section 9 and Section 13.17 of the Note, Holdings has executed this Note as of the date first written
above.

 

	 	
    GP 2XCV HOLDINGS LLC

	 	 
	 	By	/s/ Matt Brown                  
	 	Name:  	Matt Brown
	 	Title:	Authorized Person

 

    	 	 	 

     

    

 

	Acknowledged and Agreed to as of the date hereof:
	NOTEHOLDER:
	 
	B. RILEY COMMERCIAL CAPITAL, LLC
	as Noteholder
	 
	/s/ Phillip J. Ahn	 
	Name:	Phillip J. Ahn	 
	Title:	Chief Financial Officer	 

 

    	 	 	 

     

    

 

Exhibit A

 

Payments on the Loan

 

	Amount of Principal
 Paid	 	Unpaid Principal
 Amount of the Loan	 	Name of Person
 Making the Notation
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	 

 

    	 	 	 

     

    

 

Exhibit 8.9

 

FORM OF
COMPLIANCE CERTIFICATE

 

[Date]

 

B. Reily Commercial Capital, LLC

11100 Santa Monica Blvd., Ste 800

Los Angeles, CA 90025

Attn: General Counsel

Telephone: (310) 966-1444

Email: legal@brileyfin.com

 

Ladies and Gentlemen:

 

Reference is made to the Secured Promissory Note,
dated as of November 17, 2021 (as amended, restated, supplemented, or otherwise modified and in effect from time to time,
the “Note”), between GP 2XCV LLC, a Delaware limited liability company (the “Borrower”) and B.
REILY COMMERCIAL CAPITAL, LLC, a Delaware limited liability company (the “Noteholder”), and acknowledged by GP 2XCV
HOLDINGS LLC, a Delaware limited liability company (“Holdings”). Terms defined in the Note are used herein with the same
meanings.

 

I, [_____], being a duly appointed
and qualified authorized signatory of Borrower, and acting in my capacity as an authorized signatory and not in my capacity as an individual,
DO HEREBY CERTIFY that:

 

1.          The
financial statements provided concurrently herewith, as required by Section 8.9(a) of the Note, fairly present in all material
respects the financial condition of the entities referenced therein as at the end of the Fiscal Quarter referenced therein on a consolidated
basis, and the related statements of operations, cash flows and owner’s equity of such entities for such Fiscal Quarter, in accordance
with GAAP consistently applied (subject to normal year-end audit adjustments and the absence of footnotes in the case of the unaudited
consolidated financial statements).

 

2.         Based
upon a review of the activities of Holdings and its Subsidiaries and the financial statements attached hereto during the period covered
thereby, as of the date hereof, there exists [no Default or Event of Default.][a Default or Event of Default as specified below:

 

	 
	And the Borrower [has taken][proposes to take] the following actions with respect thereto:
	 
	.]

 

    	 	 	 

     

    

 

3.         [There
has been no change in the legal name or type of organization of Holdings and the Borrower as of the end of the Fiscal Quarter ending [date]
from what was previously identified by the Borrower to the Noteholder [on the Closing Date][as of the most recent Fiscal Quarter.]

 

[A change has occurred in the
legal name or type of organization of [_______] from what was previously identified by the Borrower to the Noteholder [on the Closing
Date][as of the most recent Fiscal Quarter as specified below:

 

[Remainder
of This Page Intentionally Left Blank.]

 

    	 	 	 

     

    

 

IN WITNESS WHEREOF, I have hereunto signed
my name as of the date first above written.

 

	 	 	 
	 	Name:	[_____]
	 	Title:	Authorized SignatoryExhibit 10.1
AMENDMENT NO. 3
to
LOAN AND SECURITY AGREEMENT
THIS AMENDMENT NO. 3 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is entered into as of November 15, 2021, by and among XCEL BRANDS, INC., a Delaware corporation (“Borrower”), each other signatory hereto that is a Credit Party under the Loan Agreement (as hereinafter defined), the financial institutions from time to time party to the Loan Agreement (collectively, “Lenders” and individually, each a “Lender”), BANK HAPOALIM B.M., (“BHI”) as administrative agent and collateral agent for Lenders (BHI in such capacity together with its successors and assigns in such capacity, “Administrative Agent”) and FEAC AGENT, LLC (“FEAC”), as co-collateral agent (FEAC in such capacity together with its successors and assigns in such capacity, “Co-Collateral Agent”).
BACKGROUND
Borrower, IM Brands, LLC (“IM Brands”), JR Licensing, LLC, H Licensing, LLC, C Wonder Licensing, LLC, Xcel Design Group, LLC, Judith Ripka Fine Jewelry, LLC, H Heritage Licensing, LLC, Xcel-CT MFG, LLC and Gold Licensing, LLC (other than Borrower, collectively, “Guarantors”), Lenders and Agents are parties to a Loan and Security Agreement dated as of April 12, 2021 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”) pursuant to which Lenders made term loans to Borrower secured by a Lien on substantially all of the assets of Borrower.  Guarantors have guaranteed the payment and performance of Borrower’s obligations to Lenders and Agents under the Loan Agreement which guarantee obligations are secured by a Lien on substantially all of the assets of Guarantors.
Borrower has requested that Lenders waive compliance with certain financial covenants, and make certain amendments to the Loan Agreement.  Lenders and Agents have agreed to provide such waiver and amend the Loan Agreement on the terms and conditions set forth herein.
NOW, THEREFORE, in consideration of the financial accommodations provided to Borrower by Lenders, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:
1.Definitions.  All capitalized terms not otherwise defined herein shall have the meanings given to them in the Loan Agreement.
2.Amendment to Loan Agreement.  Subject to the satisfaction of the conditions set forth in Section 3 below, the Loan Agreement is hereby amended replacing Schedule II (Financial Covenants) with Schedule II attached to this Amendment.
3.Conditions of Effectiveness.  This Amendment shall become effective upon Agents’ receipt of this Amendment duly executed by each Credit Party and each Lender.
​

​
	​
	​
	​
​
​​

​

4.Representations and Warranties.  Each Credit Party hereby represents and warrants as follows:
(a)This Amendment constitutes the legal, valid and binding obligation of such Credit Party and is enforceable against such Credit Party in accordance with its terms, except to the extent that such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting the enforcement of creditors’ rights generally or limiting the right of specific performance.
(b)Upon the effectiveness of this Amendment, all representations and warranties of such Credit Party contained in the Loan Documents to which it is a party continue to be true and correct in all material respects as of the date hereof, as if repeated as of the date hereof, except for such representations and warranties which, by their terms, are expressly made only as of a previous date.
(c)No Event of Default has occurred and is continuing or would exist after giving effect to this Amendment.
(d)No Credit Party has any defense, counterclaim or offset with respect to any of the Loan Documents.
5.Effect on the Loan Documents.
(a)Except as specifically set forth herein, the Loan Documents shall remain in full force and effect, and are hereby ratified and confirmed by each Credit Party a party thereto.
(b)Except  as specifically set forth herein, the execution, delivery and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of Agents or any Lender nor constitute a waiver of any provision of any Loan Document.
6.Governing Law.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns and shall be governed by and construed in accordance with the laws of the State of New York.
7.Headings.  Section headings in this Amendment are included herein for convenience of reference only and shall not constitute a part of this Amendment for any other purpose.
8.Counterparts; Electronic Transmission.  This Amendment may be executed by the parties hereto in one or more counterparts, each of which shall be deemed an original and all of which when taken together shall constitute one and the same agreement.  Any signature delivered by a party by facsimile or other electronic transmission shall be deemed to be an original signature hereto.
​
​

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	​
	​
	​
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​​

​

​

IN WITNESS WHEREOF, this Amendment has been duly executed as of the day and year first written above.
XCEL BRANDS, INC.
By:​ ​  /s/ James Haran​ ​
Name: James Haran
Title:   CFO
IM BRANDS, LLC
JR LICENSING, LLC
H LICENSING, LLC
C WONDER LICENSING, LLC
XCEL DESIGN GROUP, LLC
JUDITH RIPKA FINE JEWELRY, LLC
H HERITAGE LICENSING, LLC
XCEL-CT MFG, LLC
GOLD LICENSING, LLC
		By:
	XCEL BRANDS, INC.,
Its Manager

By:​ ​  /s/ James Haran​ ​
Name: James Haran
Title: CFO
​
​

​
	​
	​
	SIGNATURE PAGE TO
AMENDMENT NO. 3 TO 
LOAN AND SECURITY AGREEMENT

​

​

BANK HAPOALIM B.M., as Administrative Agent
By:​ ​  /s/ Barry S. Renow​ ​
Name: Barry S. Renow
Title: FVP
By:​ ​ /s/ Carl Giordano​ ​
Name: Carl Giordano
Title: SVP
[additional signature pages follow]
​

​
	​
	​
	SIGNATURE PAGE TO
AMENDMENT NO. 3 TO 
LOAN AND SECURITY AGREEMENT

​

​

FEAC AGENT, LLC, as Co-Collateral Agent.
By:​ ​ /s/ Michelle Handy​ ​
Name: Michelle Handy
Title: Managing Director
[additional signature pages follow]
​
​

​
	​
	​
	SIGNATURE PAGE TO
AMENDMENT NO. 3 TO 
LOAN AND SECURITY AGREEMENT

​

​

BANK HAPOALIM B.M., as a Lender
By:​ ​ /s/ Carl Giordano​ ​
Name: Carl Giordano
Title: SVP
By:​ ​ /s/ Barry S. Renow​ ​
Name: Barry S. Renow
Title: FVP
[additional signature pages follow]
​
​

​
	​
	​
	SIGNATURE PAGE TO
AMENDMENT NO. 3 TO 
LOAN AND SECURITY AGREEMENT

​

​

FIRST EAGLE ALTERNATIVE CAPITAL BDC, INC., as a Lender
By:​ ​ /s/ Michelle Handy​ ​
Name: Michelle Handy
Title: Managing Director
FIRST EAGLE DIRECT LENDING FUND IV, LLC, as a Lender
		By:  
	First Eagle Alternative Credit, LLC
Its:  Manager

By: /s/ Michelle Handy​ ​
Name: Michelle Handy
Title: Managing Director
FIRST EAGLE DIRECT LENDING IV CO-INVEST, LLC, as a Lender
		By:  
	First Eagle Alternative Credit, LLC
Its:  Manager

By: /s/ Michelle Handy​ ​
Name: Michelle Handy
Title: Managing Director
FIRST EAGLE DIRECT LENDING LEVERED FUND IV SPV, LLC, as a Lender
		By:  
	First Eagle Direct Lending Levered Fund IV, LLC

		Its:  
	Manager

By:​ ​ /s/ Michelle Handy​ ​
Name: Michelle Handy
Title: Managing Director
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	SIGNATURE PAGE TO
AMENDMENT NO. 3 TO 
LOAN AND SECURITY AGREEMENT

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SCHEDULE II
FINANCIAL COVENANTS
1.Minimum EBITDA.  EBITDA of Borrower and the Included Subsidiaries on a consolidated basis shall not be less than the amounts set forth below at the end of the applicable fiscal period set forth below:
	Fiscal Period
	Minimum EBITDA

	April 1, 2021 to September 30, 2021
	$2,200,000

	April 1, 2021 to December 31, 2021 
	$3,426,000

	For the trailing twelve month period ending March 31, 2022
	$4,515,000

	For the trailing twelve month period ending June 30, 2022
	$5,146,000

	For the trailing twelve month periods ending September 30, 2022
	$6,500,000

	For the trailing twelve month periods ending December 31, 2022, March 31, 2023, June 30, 2023 and September 30, 2023
	$7,000,000

	For the trailing twelve month periods ending December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024, December 31, 2024 and March 31, 2025
	$7,500,000

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2.Minimum Liquid Assets.  Liquid Assets of Borrower and the Included Subsidiaries on a consolidated basis shall be at least $4,000,000 at all times.
3.Fixed Charge Coverage Ratio.  The Fixed Charge Coverage Ratio of Borrower and the Included Subsidiaries on a consolidated basis for (a) the nine month period ending on December 31, 2021 shall not be less than 1.00 to 1.00, (b) the twelve Fiscal Month period ending March 31, 2022 shall not be less than 1.00 to 1.00 and (c) the twelve Fiscal Month period ending at the end of each Fiscal Quarter commencing with the Fiscal Quarter ending June 30, 2022 shall not be less than 1.25 to 1.00.
4.Maximum Leverage Ratio.  The Leverage Ratio of Borrower and the Included Subsidiaries on a consolidated basis for (a) the twelve Fiscal Month period ending at the end of each Fiscal Quarter shall not exceed (a) 6.75 to 1.00 for the Fiscal Quarter ending December 31, 2021, (b) 5.30 to 1.00 for each Fiscal Quarter ending March 31, 2022 and (c) 4.00 to 1.00 for each Fiscal Quarter ending on and after June 30, 2022.
5.Loan To Value Ratio.  At no time shall the Loan to Value Ratio exceed 50%.

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