Document:

Exhibit 10.3

 

 

 

REVOLVING TERM NOTE

 

January 15, 2013

 

$2,000,000.00

 

For value received, the
undersigned Wireless Xcessories Group, Inc., a Delaware corporation, with an address of 1840 County Line Road, Suite
301, Huntingdon, Pennsylvania 19006 (the “Borrower”), promises to pay to the order of TD Bank, N.A., a National
Association with an address of 2005 Market Street, 2nd Floor, Philadelphia, Pennsylvania 19103 (together with its successors and
assigns, the “Bank”), the principal amount of Two Million Dollars and Zero Cents ($2,000,000.00), or, if less,
such amount as may be the aggregate unpaid principal amount of all loans or advances made by the Bank to the Borrower pursuant
hereto, on or before January 15, 2014 (the “Maturity Date”) unless extended in writing by the Bank in its sole
and absolute discretion, together with interest from the date hereof on the unpaid principal balance from time to time outstanding
until paid in full. The aggregate principal balance outstanding shall bear interest thereon at a per annum rate equal to Two
and One-Half Percent (2.50%) above the LIBOR Rate (as hereinafter defined) for any Interest Period (as hereinafter defined).
All accrued and unpaid interest shall be payable monthly in arrears on the 15th day of each month following the end of an Interest
Period.

 

Interest Period means initially,
the period commencing on the date of this Note (the “Start Date”) and ending on the numerically corresponding date
one month later, and thereafter each one month period ending on the day of such month that numerically corresponds to the Start
Date. If an Interest Period is to end in a month for which there is no day which numerically corresponds to the Start Date, the
Interest Period will end on the last day of such month.

 

LIBOR Rate means the rate
of Interest (rounded upwards, at the Bank’s option, to the next 100th of one percent) equal to the British Bankers’
Association LIBOR (“BBA LIBOR”) for the equivalent Interest Period as published by Bloomberg (or such other commercially
available source providing quotations of BBA LIBOR as designated by Bank from time to time) at approximately 11:00 A.M. (London
time) 2 London Banking Days prior to the interest rate reset date; provided however, if more than one BBA LIBOR is specified, the
applicable rate shall be the arithmetic mean of all such rates. London Banking Days means any day on which commercial banks are
open for general business (including dealings in foreign exchange and foreign currency deposits) in London, England. If, for any
reason, such rate is not available, the term LIBOR shall mean, with respect to any Interest Period, the rate of interest per annum
determined by Bank to be the average rate per annum at which deposits in dollars are offered for such Interest Period by major
banks in the London, England at approximately 11:00 A.M. (London time) 2 London Banking Days prior to the interest rate reset date.

 

Principal and interest
shall be payable at the Bank’s main office or at such other place as the Bank may designate in writing in immediately available
funds in lawful money of the United States of America without set-off, deduction or counterclaim. Interest shall be calculated
on the basis of actual number of days elapsed and a 360-day year.

 

This Note is a revolving
note and, subject to the foregoing and in accordance with the provisions hereof and of any and all other agreements between the
Borrower and the Bank related hereto, the Borrower may, at its option, borrow, pay, prepay and reborrow hereunder at any time prior
to the Maturity Date or such earlier date as the obligations of the Borrower to the Bank under this Note, and any other agreements
between the Bank and the Borrower related hereto, shall become due and payable, or the obligation of the Bank to extend financial
accommodations to the Borrower shall terminate; provided, however, that in any event the principal balance outstanding hereunder
shall at no time exceed the face

 

Loan Number - Note 1: 14773069001

 

    	 

    	 

    

 

amount of this Note. This Note shall continue
in full force and effect until all obligations and liabilities evidenced by this Note are paid in full and the Bank is no longer
obligated to extend financial accommodations to the Borrower, even if, from time to time, there are no amounts outstanding respecting
this Note.

 

At the option of the Bank,
this Note shall become immediately due and payable without notice or demand upon the occurrence at any time of any of the following
events of default (each, an “Event of Default”): (1) default of any liability, obligation, covenant or undertaking
of the Borrower, any endorser or any guarantor hereof to the Bank, hereunder or otherwise, including, without limitation, failure
to pay in full and when due any installment of principal or interest or default of the Borrower, any endorser or any guarantor
hereof under any other loan document delivered by the Borrower, any endorser or any guarantor, or in connection with the loan
evidenced by this Note or any other agreement by the Borrower, any endorser or any guarantor with the Bank continuing for 15 days
with respect to any default (other than with respect to the payment of money for which there is no grace period); (2) failure
of the Borrower, any endorser or any guarantor hereof to maintain aggregate collateral security value satisfactory to the Bank
continuing for 15 days; (3) default of any material liability, obligation or undertaking of the Borrower, any endorser or any
guarantor hereof to any other party continuing for 15 days; (4) if any statement, representation or warranty heretofore, now or
hereafter made by the Borrower, any endorser or any guarantor hereof in connection with the loan evidenced by this Note or in
any supporting financial statement of the Borrower, any endorser or any guarantor hereof shall be determined by the Bank to have
been false or misleading in any material respect when made; (5) if the Borrower, any endorser or any guarantor hereof is a corporation,
trust, partnership or limited liability company, the liquidation, termination or dissolution of any such organization, or the
merger or consolidation of such organization into another entity, or its ceasing to carry on actively its present business or
the appointment of a receiver for its property; (6) the death of the Borrower, any endorser or any guarantor hereof and, if the
Borrower, any endorser or any guarantor hereof is a partnership or limited liability company, the death of any partner or member;
(7) the institution by or against the Borrower, any endorser or any guarantor hereof of any proceedings under the Bankruptcy Code
11 USC §101 et seq. or any other law in which the Borrower, any endorser or any guarantor hereof is alleged to be
insolvent or unable to pay its debts as they mature, or the making by the Borrower, any endorser or any guarantor hereof of an
assignment for the benefit of creditors or the granting by the Borrower, any endorser or any guarantor hereof of a trust mortgage
for the benefit of creditors; (8) the service upon the Bank of a writ in which the Bank is named as trustee of the Borrower, any
endorser or any guarantor hereof; (9) a judgment or judgments for the payment of money shall be rendered against the Borrower,
any endorser or any guarantor hereof, and any such judgment shall remain unsatisfied and in effect for any period of thirty (30)
consecutive days without a stay of execution; (10) any levy, lien (including mechanics lien) except as permitted under any of
the other loan documents between the Bank and the Borrower, seizure, attachment, execution or similar process shall be issued
or levied on any of the property of the Borrower, any endorser or any guarantor hereof; (11) the termination or revocation of
any guaranty hereof; or (12) the occurrence of such a change in the condition or affairs (financial or otherwise) of the Borrower,
any endorser or any guarantor hereof, or the occurrence of any other event or circumstance, such that the Bank, in its sole discretion,
deems that it is insecure or that the prospects for timely or full payment or performance of any obligation of the Borrower, any
endorser or any guarantor hereof to the Bank has been or may be impaired.

 

BORROWER HEREBY AUTHORIZES
AND EMPOWERS ANY ATTORNEY OR ATTORNEYS OR THE PROTHONOTARY OR CLERK OF ANY COURT OF RECORD IN THE COMMONWEALTH OF PENNSYLVANIA
OR IN ANY OTHER JURISDICTION, UPON THE OCCURRENCE OF AN EVENT OF DEFAULT, TO APPEAR FOR BORROWER IN ANY SUCH COURT, WITH OR WITHOUT
DECLARATION FILED, AS OF ANY TERM OR TIME THERE OR ELSEWHERE TO BE HELD AND THEREIN TO CONFESS OR ENTER JUDGMENT AGAINST BORROWER
IN FAVOR OF THE BANK FOR ALL SUMS DUE OR TO BECOME DUE BY BORROWER TO THE BANK UNDER THIS NOTE, WITH COSTS OF SUIT AND RELEASE
OF ERRORS AND WITH THE GREATER OF FIVE PERCENT (5%) OF SUCH SUMS OR $10,000 ADDED AS A REASONABLE ATTORNEY’S FEE AND FOR
DOING SO THIS NOTE OR A COPY VERIFIED BY AFFIDAVIT SHALL BE SUFFICIENT WARRANT. SUCH AUTHORITY AND POWER SHALL NOT BE EXHAUSTED
BY ANY EXERCISE THEREOF, AND JUDGMENT MAY BE CONFESSED AS AFORESAID FROM TIME TO TIME AS OFTEN AS THERE IS

 

Loan Number - Note 1: 14773069001

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OCCASION THEREFOR.

 

BORROWER ACKNOWLEDGES
THAT IT HAS BEEN OR HAS HAD THE OPPORTUNITY TO BE REPRESENTED BY COUNSEL IN CONNECTION WITH THE EXECUTION AND DELIVERY OF THIS
NOTE AND THAT IT KNOWINGLY WAIVES ITS RIGHT TO BE HEARD PRIOR TO THE ENTRY OF SUCH JUDGMENT AND UNDERSTANDS THAT, UPON SUCH ENTRY,
SUCH JUDGMENT SHALL BECOME A LIEN ON ALL REAL PROPERTY OF BORROWER IN THE COUNTY WHERE SUCH JUDGMENT IS ENTERED.

 

Any payments received by
the Bank on account of this Note shall, at the Bank’s option, be applied to any accrued unpaid interest, then to outstanding
and due amounts of principal; then to any required escrow payment if applicable; then to any debt protection insurance premium
if applicable; and then to any fees including late charges and then to any costs. Notwithstanding the foregoing, any payments received
after the occurrence and during the continuance of an Event of Default shall be applied in such manner as the Bank may determine.
The Borrower hereby authorizes the Bank to charge any deposit account which the Borrower may maintain with the Bank for any payment
required hereunder without prior notice to the Borrower.

 

The Borrower hereby authorizes
Bank to charge checking account number 373006618 at Bank (or such other account maintained by the Borrower at Bank as the Borrower
shall designate by written notice to the Bank) (the “Deposit Account”) to satisfy the monthly payments due and payable
to Bank hereunder. Bank is hereby authorized to charge the Deposit Account on each charge date or, if any charge date shall fall
on a Saturday, Sunday or legal holiday, then either on the first (1st) business day immediately preceding or the first (1st) business
day immediately following any such charge date until the Note shall be paid in full.

 

The Borrower agrees to
maintain sufficient funds in the Deposit Account to satisfy the payment due Bank under the Note on each charge date during the
term of the loan. If sufficient funds are not available in the Deposit Account on any charge date to pay the amounts then due and
payable under this Note, Bank, in its sole discretion, is authorized to: (a) charge the Deposit Account for such lesser amount
as shall then be available; and/or (b) charge the Deposit Account on such later date or dates that funds shall be available in
the Deposit Account to satisfy the payment then due (or balance of such payment then due). Notwithstanding the foregoing, the Borrower
shall only be entitled to receive credit in respect of any payments of principal and interest due under this Note for funds actually
received by Bank as a result of any such charges to the Deposit Account. The Borrower shall be liable to Bank for any late fees
or interest at the default rate on any payments not made on a timely basis by the Borrower because of insufficient funds in the
Deposit Account on any charge date. In the event the Deposit Account continues to contain insufficient funds to fully satisfy the
payments due Bank under this Note, the Borrower shall be responsible for making all such payments from another source and in no
event shall the obligations of the Borrower under this Note be affected or diminished as a result of any shortages in the Deposit
Account, it being understood and agreed that the Borrower shall at all times remain liable for payment in full of all Indebtedness
under the Note.

 

Bank may, at Bank’s
sole discretion, discontinue charging the Deposit Account at any time on not less than ten (10) days’ written notice to the
Borrower, in which event, the Borrower shall thereafter be responsible for making all payments hereunder to Bank at the address
set forth in Bank’s notice or if no such address is given; then to Bank at P.O. Box 5600, Lewiston, Maine 04243-5600.

 

If pursuant to the terms
of this Note, the Borrower is at any time obligated to pay interest on the principal balance at a rate in excess of the maximum
interest rate permitted by applicable law for the loan evidenced by this Note, the applicable interest rate shall be immediately
reduced to such maximum rate and all previous payments in excess of the maximum rate shall be deemed to have been payments in reduction
of principal and not on account of the interest due hereunder.

 

The Borrower represents
to the Bank that the proceeds of this Note will not be used for

 

Loan Number - Note 1: 14773069001

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personal, family or household purposes or
for the purpose of purchasing or carrying margin stock or margin securities within the meaning of Regulations U and X of the Board
of Governors of the Federal Reserve System, 12 C.F.R. Parts 221 and 224.

 

The Borrower and each endorser
and guarantor hereof grant to the Bank a continuing lien on and security interest in any and all deposits or other sums at any
time credited by or due from the Bank or any Bank Affiliate (as hereinafter defined) to the Borrower and/or each endorser or guarantor
hereof and any cash, securities, instruments or other property of the Borrower and each endorser and guarantor hereof in the possession
of the Bank or any Bank Affiliate, whether for safekeeping or otherwise, or in transit to or from the Bank or any Bank Affiliate
(regardless of the reason the Bank or Bank Affiliate had received the same or whether the Bank or Bank Affiliate has conditionally
released the same) as security for the full and punctual payment and performance of all of the liabilities and obligations of the
Borrower and/or any endorser or guarantor hereof to the Bank or any Bank Affiliate and such deposits and other sums may be applied
or set off against such liabilities and obligations of the Borrower or any endorser or guarantor hereof to the Bank or any Bank
Affiliate at any time, whether or not such are then due, whether or not demand has been made and whether or not other collateral
is then available to the Bank or any Bank Affiliate.

 

No delay or omission on
the part of the Bank in exercising any right hereunder shall operate as a waiver of such right or of any other right of the Bank,
nor shall any delay, omission or waiver on any one occasion be deemed a bar to or waiver of the same or any other right on any
future occasion. The Borrower and every endorser or guarantor of this Note, regardless of the time, order or place of signing,
waives presentment, demand, protest, notice of intent to accelerate, notice of acceleration and all other notices of every kind
in connection with the delivery, acceptance, performance or enforcement of this Note and assents to any extension or postponement
of the time of payment or any other indulgence, to any substitution, exchange or release of collateral, and to the addition or
release of any other party or person primarily or secondarily liable and waives all recourse to suretyship and guarantor defenses
generally, including any defense based on impairment of collateral. To the maximum extent permitted by law, the Borrower and each
endorser and guarantor of this Note waive and terminate any homestead rights and/or exemptions respecting any premises under the
provisions of any applicable homestead laws, including without limitation, Title 42, Section 8123, of the Pennsylvania Consolidated
Statutes Annotated.

 

Borrower hereby waives
and releases all errors, defects and imperfections in any proceedings instituted by the Bank under the terms of this Note or any
other loan documents, as well as all benefits that might accrue to the Borrower by virtue of any present or future laws exempting
any property, real or personal, or any part of the proceeds arising from any sale of such property, from attachment, levy or sale
under execution or providing for any stay of execution, exemption from civil process or extension of time for payment, as well
as the right of inquisition on any real estate that may be levied upon under a judgment obtained by virtue hereof, and Borrower
hereby voluntarily condemns the same and authorizes the entry of such voluntary condemnation on any writ of execution issued thereon,
and agrees that such real estate may be sold upon any such writ in whole or in part in any order desired by the Bank.

 

The Borrower and each endorser
and guarantor of this Note shall indemnify, defend and hold the Bank and the Bank Affiliates and their directors, officers, employees,
agents and attorneys (each an “Indemnitee”) harmless against any claim brought or threatened against any Indemnitee
by the Borrower, by any endorser or guarantor, or by any other person (as well as from attorneys’ reasonable fees and expenses
in connection therewith) on account of the Bank’s relationship with the Borrower or any endorser or guarantor hereof (each
of which may be defended, compromised, settled or pursued by the Bank with counsel of the Bank’s selection, but at the expense
of the Borrower and any endorser and/or guarantor), except for any claim arising out of the gross negligence or willful misconduct
of the Bank.

 

The Borrower and each endorser and guarantor
of this Note agree to pay, upon demand, costs of collection of all amounts under this Note including, without limitation, principal
and interest, or in connection with the enforcement of, or realization on, any security for this Note, including, without limitation,
to the extent permitted by applicable law, reasonable attorneys’ fees and expenses. Upon the

 

Loan Number - Note 1: 14773069001

    	4

    	 

    

 

occurrence and during the continuance of an
Event of Default, interest shall accrue at a rate per annum equal to the aggregate of 4.0% plus the rate provided for herein. If
any payment due under this Note is unpaid for 15 days or more, the Borrower shall pay, in addition to any other sums due under
this Note (and without limiting the Bank’s other remedies on account thereof), a late charge equal to 6.0% of such unpaid
amount.

 

This Note shall be binding
upon the Borrower and each endorser and guarantor hereof and upon their respective heirs, successors, assigns and legal representatives,
and shall inure to the benefit of the Bank and its successors, endorsees and assigns.

 

The liabilities of the
Borrower and any endorser or guarantor of this Note are joint and several; provided, however, the release by the Bank of the Borrower
or any one or more endorsers or guarantors shall not release any other person obligated on account of this Note. Any and all present
and future debts of the Borrower to any endorser or guarantor of this Note are subordinated to the full payment and performance
of all present and future debts and obligations of the Borrower to the Bank. Each reference in this Note to the Borrower, any endorser,
and any guarantor, is to such person individually and also to all such persons jointly. No person obligated on account of this
Note may seek contribution from any other person also obligated, unless and until all liabilities, obligations and indebtedness
to the Bank of the person from whom contribution is sought have been irrevocably satisfied in full. The release or compromise by
the Bank of any collateral shall not release any person obligated on account of this Note.

 

The Borrower and each endorser
and guarantor hereof each authorizes the Bank to complete this Note if delivered incomplete in any respect. A photographic or other
reproduction of this Note may be made by the Bank, and any such reproduction shall be admissible in evidence with the same effect
as the original itself in any judicial or administrative proceeding, whether or not the original is in existence.

 

The Borrower will from
time to time execute and deliver to the Bank such documents, and take or cause to be taken, all such other further action, as the
Bank may request in order to effect and confirm or vest more securely in the Bank all rights contemplated by this Note or any other
loan documents related thereto (including, without limitation, to correct clerical errors) or to vest more fully in or assure to
the Bank the security interest in any collateral securing this Note or to comply with applicable statute or law.

 

The Borrower agrees to
execute, re-execute, cause any Guarantor(s) or other third party(ies) involved in the loan transaction to execute and/or re-execute
and to deliver to Bank or its legal counsel, as may be deemed appropriate, any document or instrument signed in connection with
the Loan which was incorrectly drafted and/or signed, as well as any document or instrument which should have been signed at or
prior to the closing of the Loan, but which was not so signed and delivered. Borrower agrees to comply with any written request
by Bank within ten (10) days after receipt by Borrower of such request. Failure by Borrower to so comply shall, at the option of
Bank, upon notice to Borrower, constitute an event of default under the Loan. The Borrower authorizes the Bank to make any credit
inquiries Bank deems necessary and authorizes any person or credit reporting agency to give Bank a copy of the Borrower’s
credit report and any other financial information it may have.

 

This Note is delivered
to the Bank at one of its offices, shall take effect as a sealed instrument and shall be governed by the laws of the Commonwealth
of Pennsylvania without giving effect to the conflicts of laws principles thereof.

 

Any notices under or pursuant
to this Note shall be deemed duly received and effective if delivered in hand to any officer of agent of the Borrower or Bank,
or if mailed by registered or certified mail, return receipt requested, addressed to the Borrower or Bank at the address set forth
in this Note or as any party may from time to time designate by written notice to the other party; notwithstanding the foregoing
notices to the Bank with respect to accounting and collateral release and notices to the Trustee pursuant to a Deed of Trust shall
be sent to the Bank as follows: Attention: VP Loan Servicing, Loan Services, 6000 Atrium Way, Mt. Laurel NJ 08054.

 

Loan Number - Note 1: 14773069001

    	5

    	 

    

 

The term “Bank Affiliate”
as used in this Note shall mean any “Affiliate” of the Bank. The term “Affiliate” shall mean with respect
to any person, (a) any person which, directly or indirectly through one or more intermediaries controls, or is controlled by, or
is under common control with, such person, or (b) any person who is a director or officer (i) of such person, (ii) of any subsidiary
of such person, or (iii) any person described in clause (a) above. For purposes of this definition, control of a person shall mean
the power, direct or indirect, (x) to vote 5% or more of the Capital Stock having ordinary voting power for the election of directors
(or comparable equivalent) of such person, or (y) to direct or cause the direction of the management and policies of such person
whether by contract or otherwise. Control may be by ownership, contract, or otherwise.

 

The Borrower and each endorser
and guarantor of this Note each irrevocably submits to the nonexclusive jurisdiction of any Federal or state court sitting in Pennsylvania,
over any suit, action or proceeding arising out of or relating to this Note. Each of the Borrower and each endorser and guarantor
irrevocably waives, to the fullest extent it may effectively do so under applicable law, any objection it may now or hereafter
have to the laying of the venue of any such suit, action or proceeding brought in any such court and any claim that the same has
been brought in an inconvenient forum. Each of the Borrower and each endorser and guarantor hereby consents to any and all process
which may be served in any such suit, action or proceeding, (i) by mailing a copy thereof by registered and certified mail, postage
prepaid, return receipt requested, to the Borrower’s, endorser’s or guarantor’s address shown below or as notified
to the Bank and (ii) by serving the same upon the Borrower(s), endorser(s) or guarantor(s) in any other manner otherwise permitted
by law, and agrees that such service shall in every respect be deemed effective service upon the Borrower or such endorser or guarantor.

 

THE BORROWER, EACH ENDORSER
AND GUARANTOR AND THE BANK EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH LEGAL
COUNSEL, (A) WAIVES ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS NOTE, ANY OF THE
OBLIGATIONS OF THE BORROWER, EACH ENDORSER AND GUARANTOR TO THE BANK, AND ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED
IN CONNECTION HEREWITH AND (B) AGREES NOT TO SEEK TO CONSOLIDATE ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CAN
NOT BE, OR HAS NOT BEEN, WAIVED, THE BORROWER, EACH ENDORSER AND GUARANTOR AND THE BANK EACH CERTIFIES THAT NEITHER THE BANK NOR
ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WOULD NOT IN THE EVENT OF
ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

 

CONFESSION OF JUDGMENT

 

THE TERMS OF THIS NOTE
INCLUDE A WARRANT OF ATTORNEY TO CONFESS JUDGMENT AND HAVE BEEN NEGOTIATED AND AGREED UPON IN A COMMERCIAL CONTEXT. BORROWER HAS
FULLY REVIEWED THE WARRANT OF ATTORNEY TO CONFESS JUDGMENT WITH ITS OWN COUNSEL, AND IS KNOWINGLY AND VOLUNTARILY WAIVING CERTAIN
RIGHTS IT WOULD OTHERWISE POSSESS, INCLUDING, BUT NOT LIMITED TO, THE RIGHT TO ANY NOTICE OF A HEARING PRIOR TO THE ENTRY OF JUDGMENT
BY THE BANK PURSUANT TO THE FOREGOING WARRANT.

 

Loan Number - Note 1: 14773069001

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Executed as an instrument
under seal as of January 15, 2013.

 

	 	Borrower:
	 	 
	 	Wireless Xcessories Group, Inc.
	 	 	 
	 	By:	
	 	 	Stephen Rade, President
	 	 	 
	 	
        1840 County Line Road, Suite 301

        Huntingdon, Pennsylvania

        19006

 

Loan Number - Note 1: 14773069001

    	7Exhibit 10.4

 

 

 

LOAN
AND SECURITY AGREEMENT

 

This
LOAN AND SECURITY AGREEMENT (this ‘‘Agreement”) is entered into as of January 15, 2013, between Wireless
Xcessories Group, Inc., a Delaware corporation, with its chief executive office located at 1840 County Line Road, Suite
301, Huntingdon, Pennsylvania 19006 (the “Borrower”) and TD Bank, N.A., a National Association, with an
address of 2005 Market Street, 2nd Floor, Philadelphia, Pennsylvania 19103 (the “Bank”).

 

FOR
VALUE RECEIVED, and in consideration of the granting by the Bank of financial accommodations to or for the benefit of the Borrower,
including without limitation respecting the Obligations (as hereinafter defined), the Borrower represents and agrees with the
Bank, as of the date hereof and as of the date of each loan, credit and/or other financial accommodation, as follows:

 

1.     THE
LOAN

 

1.1           Revolving
Loans. Bank agrees, in its sole discretion, to make revolving loans (the “Revolving Loans”) to or for the account
of Borrower, upon Borrower’s request therefor, in an aggregate amount of up to Two Million Dollars and Zero Cents ($2,000,000.00)
(the “Revolving Loan Amount”), provided there is no continuing uncured Event of Default (as hereinafter defined)
and subject to the terms and conditions set forth herein. The Revolving Loans shall be evidenced by that certain Revolving Term
Note, of even date herewith (the “Revolving Note”), by Wireless Xcessories Group, Inc. in favor of the Bank in the
face amount of the Revolving Loan Amount. The Bank’s agreement to make any advances pursuant to this Agreement and evidenced
by the Revolving Note shall expire on January 15, 2014. This Agreement, the Revolving Note, and any and all other documents,
amendments or renewals executed and delivered in connection with any of the foregoing are collectively hereinafter referred to
as the “Loan Documents”.

 

1.2           Revolving
Loan Account. An account shall be opened on the books of Bank in which account a record will be kept of all Revolving Loans,
and all payments thereon and other appropriate debits and credits as provided by this Agreement.

 

1.3           Interest.
Interest respecting the Revolving Loans will be charged to Borrower on the principal amount from time to time outstanding at the
interest rate specified in the Revolving Note in accordance with the terms of the Revolving Note. If not specified in the Revolving
Note, interest will be charged at the highest rate per annum charged by Bank to Borrower on any other Obligation based on a 360-day
year and the actual number of days elapsed.

 

1.4           Repayment. All loans and advances made respecting the Revolving Loans shall be payable to Bank on or before the maturity date of the
Revolving Note.

 

1.5           Clean-Up.
The Borrower shall fully repay to the Bank all amounts outstanding respecting the Revolving Loans for a period of 30 consecutive
days in each year.

 

1.6           Overadvances.
Any Revolving Loans that may be made, at the Bank’s sole discretion, in excess of the Revolving Loan Amount shall not limit
the obligations of Borrower or any of the Bank’s rights or remedies hereunder or under the Loan Documents or otherwise;
all such Revolving Loans shall 

 

Loan Number
- Note 1: 14773069001

 

    	 

    	 

    

 

be
secured by the Collateral, as hereinafter defined, and shall be due and payable to the Bank in accordance with the terms of the
Revolving Note, and shall bear Interest at the rate set forth in the Revolving Note. All checks or other items paid by Bank which
cause an overdraft in any deposit account maintained by Borrower with Bank shall, at the option of the Bank, constitute an advance
to Borrower pursuant to this Agreement respecting the Revolving Loans, repayable on demand, and shall be secured by all Collateral.

 

1.7           Authorized
Persons; Advances. Any person duly authorized by a general borrowing resolution of the Borrower, or in the absence of such
a resolution, the President, Treasurer or any Vice President of the Borrower, or any person otherwise authorized in this paragraph,
may request discretionary loans hereunder, either orally or otherwise, but the Bank at its option may require that all requests
for loans hereunder shall be in writing. The Bank shall incur no liability to Borrower in acting upon any request referred to
herein which the Bank believes in good faith to have been made by an authorized person or persons. Each loan hereunder may be
credited by Bank to any deposit account of Borrower with Bank or with any other Bank with which Borrower maintains a deposit account,
or may be paid to Borrower (or as Borrower instructs) or may be applied to any Obligations, as Bank may in each instance elect.
The following persons currently are authorized to request advances and authorize payments respecting Revolving Loans until the
Bank receives from Borrower, at the Bank’s address, written notice of revocation of their authority: Stephen Rade, President.

 

1.8           Monthly
Statement. At the option of the Bank, after the end of each month, Bank will render to Borrower a statement of the Revolving
Loan account, showing all applicable credits and debits. Each statement shall be considered correct and to have been accepted
by Borrower and shall be conclusively binding upon Borrower in respect of all charges, debits and credits of whatsoever nature
contained therein respecting the Revolving Loans, and the closing balance shown therein, unless Borrower notifies Bank in writing
of any discrepancy within twenty (20) days from the mailing by Bank to Borrower of any such monthly statement.

 

2.     GRANT
OF SECURITY INTEREST

 

2.1           Grant
of Security Interest. In consideration of the Bank’s extending credit and other financial accommodations to or for the
benefit of the Borrower, the Borrower hereby grants to the Bank a security interest in, a lien on and pledge and assignment of
the Collateral (as hereinafter defined). The security interest granted by this Agreement is given to and shall be held by the
Bank as security for the payment and performance of all Obligations, including, without limitation, all amounts outstanding pursuant
to the Loan Documents.

 

2.2           Definitions.
The following definitions shall apply;

 

(a)       “Code”
shall mean the Pennsylvania Uniform Commercial Code, Title 13 PaCSA as amended from time to time.

 

(b)       “Collateral”
shall mean all of the Borrower’s present and future right, title and interest in and to any and all of the personal property
of the Borrower whether such property is now existing or hereafter created, acquired or arising and wherever located from time
to time, including without limitation;

 

		(i)	accounts;

 

		(ii)	chattel paper;

 

		(iii)	goods;

 

		(iv)	inventory;

Loan Number
- Note 1: 14773069001

 

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		(v)	equipment;

 

		(vi)	fixtures

 

		(vii)	farm products;

 

		(viii)	instruments;

 

		(ix)	investment property;

 

		(x)	documents;

 

		(xi)	commercial tort claims;

 

		(xii)	deposit accounts;

 

		(xiii)	letter-of-credit rights;

 

		(xiv)	general intangibles;

 

		(xv)	supporting obligations; and

 

		(xvi)	records of, accession to and proceeds and products of the
foregoing.

 

(c)      ‘‘Debtors”
shall mean the Borrower’s customers who are indebted to the Borrower.

 

(d)      “Bank
Affiliate” shall mean any “Affiliate” of the Bank. The term ‘‘Affiliate” shall mean with respect
to any Person, (a) any Person which, directly or indirectly through one or more intermediaries controls, or is controlled by,
or is under common control with, such Person, or (b) any Person who is a director or officer (i) of such Person, (ii) of any subsidiary
of such Person, or (iii) any person described in clause (a) above. For purposes of this definition, control of a Person shall
mean the power, direct or indirect, (x) to vote 5% or more of the Capital Stock having ordinary voting power for the election
of directors (or comparable equivalent) of such Person, or (y) to direct or cause the direction of the management and policies
of such Person whether by contract or otherwise. Control may be by ownership, contract, or otherwise.

 

(e)       “Obligation(s)”
shall mean, without limitation, all loans, advances, indebtedness, notes, liabilities, rate swap transactions, basis swaps, forward
rate transactions, commodity swaps, commodity options, equity or equity index swaps, equity or equity index options, bond options,
interest rate options, foreign exchange transactions, cap transactions, floor transactions, collar transactions, forward transactions,
currency swap transactions, cross-currency rate swap transactions, currency options and amounts, liquidated or unliquidated, owing
by the Borrower to the Bank or any Bank Affiliate at any time, of each and every kind, nature and description, whether arising
under this Agreement or otherwise, and whether secured or unsecured, direct or indirect (that is, whether the same are due directly
by the Borrower to the Bank or any Bank Affiliate; or are due indirectly by the Borrower to the Bank or any Bank Affiliate as
endorser, guarantor or other surety, or as borrower of obligations due third persons which have been endorsed or assigned to the
Bank or any Bank Affiliate, or otherwise), absolute or contingent, due or to become due, now existing or hereafter arising or
contracted, including, without limitation, payment when due of all amounts outstanding respecting any of the Loan Documents. Said
term shall also include all interest and other charges chargeable to the Borrower or due from the Borrower to the Bank or any
Bank Affiliate from time to time and all costs and expenses referred to in this Agreement, as well as any other debts, liabilities
or obligations owing to Bank or any Bank Affiliate in connection with any lockbox, cash 

 

Loan Number
- Note 1: 14773069001

 

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management, or other services (including
electronic funds transfers or automated clearing house transactions).

 

(f)        ‘‘Person”
or “party” shall mean individuals, partnerships, corporations, limited liability companies and all other entities.

 

All
words and terms used in this Agreement other than those specifically defined herein shall have the meanings accorded to them in
the Code.

 

2.3           Ordinary
Course of Business. The Bank hereby authorizes and permits the Borrower to hold, process, sell, use or consume in the manufacture
or processing of finished goods, or otherwise dispose of inventory for fair consideration, all in the ordinary course of the Borrower’s
business, excluding, without limitation, sales to creditors or in bulk or sales or other dispositions occurring under circumstances
which would or could create any lien or interest adverse to the Bank’s security interest or other right hereunder in the
proceeds resulting there from. The Bank also hereby authorizes and permits the Borrower to receive from the Debtors all amounts
due as proceeds of the Collateral at the Borrower’s own cost and expense, and also liability, if any, subject to the direction
and control of the Bank at all times; and the Bank may at any time, without cause or notice, and whether or not an Event of Default
has occurred or demand has been made, terminate all or any part of the authority and permission herein or elsewhere in this Agreement
granted to the Borrower with reference to the Collateral, and notify Debtors to make all payments due as proceeds of the Collateral
to the Bank. Until Bank shall otherwise notify Borrower, all proceeds of and collections of Collateral shall be retained by Borrower
and used solely for the ordinary and usual operation of Borrower’s business. From and after notice by Bank to Borrower,
all proceeds of and collections of the Collateral shall be held in trust by Borrower for Bank and shall not be commingled with
Borrower’s other funds or deposited in any Bank account of Borrower; and Borrower agrees to deliver to Bank on the dates
of receipt thereof by Borrower, duly endorsed to Bank or to bearer, or assigned to Bank, as may be appropriate, all proceeds of
the Collateral in the identical form received by Borrower.

 

2.4           Allowances.
Absent an Event of Default the Borrower may grant such allowances or other adjustments to Debtors (exclusive of extending the
time for payment of any item which shall not be done without first obtaining the Bank’s written consent in each instance)
as the Borrower may reasonably deem to accord with sound business practice, including, without limiting the generality of the
foregoing, accepting the return of all or any part of the inventory (subject to the provisions set forth in this Agreement with
reference to returned inventory).

 

2.5           Records.
The Borrower shall hold its books and records relating to the Collateral segregated from all the Borrower’s other books
and records in a manner satisfactory to the Bank; and shall deliver to the Bank from time to time promptly at its request all
invoices, original documents of title, contracts, chattel paper, instruments and any other writings relating thereto, and other
evidence of performance of contracts, or evidence of shipment or delivery of the merchandise or of the rendering of services;
and the Borrower will deliver to the Bank promptly at the Bank’s request from time to time additional copies of any or all
of such papers or writings, and such other information with respect to any of the Collateral and such schedules of inventory,
schedules of accounts and such other writings as the Bank may in its sole discretion deem to be necessary or effectual to evidence
any loan hereunder or the Bank’s security interest in the Collateral.

 

2.6           Legends.
The Borrower shall promptly make, stamp or record such entries or legends on the Borrower’s books and records or on any
of the Collateral (including, without limitation, chattel paper) as Bank shall request from time to time, to indicate and disclose
that Bank has a security interest in such Collateral.

 

2.7           Inspection.
The Bank, or its representatives, at any time and from time to time, shall have the right at the sole cost and expense of Borrower,
and the Borrower wiil permit the Bank and/or its representatives: (a) to examine, check, make copies of or extracts from any of
the Borrower’s books, 

 

Loan Number
- Note 1: 14773069001

 

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records
and files (including, without limitation, orders and original correspondence); (b) to perform field exams or otherwise inspect
and examine the Collateral and to check, test or appraise the same as to quality, quantity, value and condition; and (c) to verify
the Collateral or any portion or portions thereof or the Borrower’s compliance with the provisions of this Agreement.

 

2.8           Purchase
Money Security Interests. To the extent the Borrower uses proceeds of any loans to purchase Collateral, the repayment of such
loans shall be on a “first-in-first-out” basis so that the portion of the loan used to purchase a particular item
of Collateral shall be repaid in the order in which Borrower purchased such item of Collateral.

 

2.9           Search
Reports. Bank shall receive prior to the date of this Agreement UCC search results under all names used by the Borrower during
the prior five (5) years, from each jurisdiction where any Collateral is located, from the State, if any, where the Borrower is
organized and registered (as such terms are used in the Code), and the State where the Borrower’s chief executive office
is located. The search results shall confirm that the security interest in the Collateral granted Bank hereunder is prior to all
other security interests in favor of any other person.

 

3.     REPRESENTATIONS
AND WARRANTIES

 

3.1           Organization
and Qualification. Borrower is a duly organized and validly existing corporation under the laws of the State of its incorporation
with the exact legal name set forth in the first paragraph of this Agreement. Borrower is in good standing under the laws of said
State, has the power to own its property and conduct its business as now conducted and as currently proposed to be conducted,
and is duly qualified to do business under the laws of each state where the nature of the business done or property owned requires
such qualification.

 

3.2           Subsidiaries.
Borrower has no subsidiaries other than as previously specifically consented to in writing by the Bank, if any, and the Borrower
has never consolidated, merged or acquired substantially all of the assets of any other entity or person other than as previously
specifically consented to in writing by the Bank, if any.

 

3.3           Corporate
Records. Borrower’s corporate charter, articles or certificate of organization or incorporation and all amendments thereto
have been duly filed and are in proper order. All outstanding capital stock issued by the Borrower was and is properly issued
and all books and records of the Borrower, including but not limited to its minute books, bylaws and books of account, are accurate
and up to date and will be so maintained.

 

3.4           Title
to Properties; Absence of Liens. Borrower has good and clear record and marketable title to all of its properties and assets,
and all of its properties and assets including the Collateral are free and clear of all mortgages, liens, pledges, charges, encumbrances
and setoffs, other than the security interest therein granted to the Bank and those mortgages, deeds of trust, leases of personal
property and security interests previously specifically consented to in writing by the Bank.

 

3.5           Places
of Business. Borrower’s chief executive office is correctly stated in the preamble to this Agreement, and Borrower shall,
during the term of this Agreement, keep the Bank currently and accurately informed in writing of each of its other places of business,
and shall not change the location of such chief executive office or open or close, move or change any existing or new place of
business without giving the Bank at least thirty (30) days prior written notice thereof.

 

3.6           Valid
Obligations. The execution, delivery and performance of the Loan Documents have been duly authorized by all necessary corporate
action and each represents a legal, valid and binding obligation of Borrower and is fully enforceable according to its terms,
except as limited by laws relating to the enforcement of creditors’ rights.

 

Loan Number
- Note 1: 14773069001

 

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3.7           Conflicts.
There is no provision in Borrower’s organizational or charter documents, if any, or in any indenture, contract or agreement
to which Borrower is a party which prohibits, limits or restricts the execution, delivery or performance of the Loan Documents.

 

3.8           Governmental
Approvals. The execution, delivery and performance of the Loan Documents does not require any approval of or filing with any
governmental agency or authority.

 

3.9           Litigation,
etc. There are no actions, claims or proceedings pending or to the knowledge of Borrower threatened against Borrower which
might materially adversely affect the ability of Borrower to conduct its business or to pay or perform the Obligations.

 

3.10         Financial
Statements. The Borrower has furnished to the Bank the following Financial Statements (the “Financial Statements”):
balance sheet as of December 31, 2011, and statement of profit and loss for the period ending December 31, 2011.
The balance sheet fairly presents the condition of the Borrower at the date thereof and the statement of profit and loss fairly
presents the results of the operations of the Borrower for the period indicated, all in conformity with generally accepted accounting
principles, consistently applied.

 

3.11         Accounts
and Contract Rights. All accounts arise out of legally enforceable and existing contracts, and represent unconditional and
undisputed bona fide indebtedness by a Debtor, and are not and will not be subject to any discount (except such cash or trade
discount as may be shown on any invoice, contract or other writing delivered to the Bank). No contract right, account, general
intangible or chattel paper is or will be represented by any note or other instrument, and no contract right, account or general
intangible is, or will be represented by any conditional or installment sales obligation or other chattel paper, except such instruments
or chattel paper as have been or immediately upon receipt by the Borrower will be delivered to the Bank (duly endorsed or assigned),
such delivery, in the case of chattel paper, to include all executed copies except those in the possession of the installment
buyer and any security for or guaranty of any of the Collateral shall be delivered to the Bank immediately upon receipt thereof
by the Borrower, with such assignments and endorsements thereof as the Bank may request.

 

3.12         Title
to Collateral. At the date hereof the Borrower is (and as to Collateral that the Borrower may acquire after the date hereof,
will be) the lawful owner of the Collateral, and the Collateral and each item thereof is, will be and shall continue to be free
of all restrictions, liens, encumbrances or other rights, title or interests (other than the security interest therein granted
to the Bank), credits, defenses, recoupments, set-offs or counterclaims whatsoever. The Borrower has and will have full power
and authority to grant to the Bank a security interest in the Collateral and the Borrower has not transferred, assigned, sold,
pledged, encumbered, subjected to lien or granted any security interest in, and will not transfer, assign, sell (except sales
or other dispositions in the ordinary course of business in respect to inventory as expressly permitted in this Agreement), pledge,
encumber, subject to lien or grant any security interest in any of the Collateral (or any of the Borrower’s right, title
or interest therein), to any person other than the Bank. The Collateral is and will be valid and genuine in all respects. The
Borrower will warrant and defend the Bank’s right to and interest in the Collateral against all claims and demands of all
persons whatsoever.

 

3.13         Location
of Collateral. Except for sale, processing, use, consumption or other disposition in the ordinary course of business, the
Borrower will keep all inventory and equipment only at locations specified in this Agreement or specified to the Bank in writing.
The Borrower shall, during the term of this Agreement, keep the Bank currently and accurately informed in writing of each location
where the Borrower’s records relating to its accounts and contract rights, respectively, are kept, and shall not remove
such records or any of them to another location without giving the Bank at least thirty (30) days prior written notice thereof.

 

3.14         Third
Parties. The Bank shall not be deemed to have assumed any liability or responsibility to the Borrower or any third person
for the correctness, validity or genuineness of any instruments or documents that may be released or endorsed to the Borrower
by the Bank (which shall automatically be 

 

Loan Number
- Note 1: 14773069001

 

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deemed
to be without recourse to the Bank in any event) or for the existence, character, quantity, quality, condition, value or delivery
of any goods purporting to be represented by any such documents; and the Bank, by accepting such security interest in the Collateral,
or by releasing any Collateral to the Borrower, shall not be deemed to have assumed any obligation or liability to any supplier
or Debtor or to any other third party, and the Borrower agrees to indemnify and defend the Bank and hold it harmless in respect
to any claim or proceeding arising out of any matter referred to in this paragraph.

 

3.15         Payment
of Accounts. Each account or other item of Collateral, other than inventory and equipment, will be paid in full on or before
the date shown as its due date in the schedule of Collateral, in the copy of the invoice(s) relating to the account or other Collateral
or in contracts relating thereto. Upon any suspension of business, assignment or trust mortgage for the benefit of creditors,
dissolution, petition in receivership or under any chapter of the Bankruptcy Code as amended from time to time by or against any
Debtor, any Debtor becoming insolvent or unable to pay its debts as they mature or any other act of the same or different nature
amounting to a business failure, the Borrower will immediately notify the Bank thereof.

 

3.16         Changes.
Since the date of the Financial Statements, there have been no changes in the assets, liabilities, financial condition or business
of the Borrower, other than changes in the ordinary course of business, the effect of which have, in the aggregate, been materially
adverse.

 

3.17         Taxes.
The Borrower has filed all Federal, state and other tax returns required to be filed (except for such returns for which current
and valid extensions have been filed), and all taxes, assessments and other governmental charges due from the Borrower have been
fully paid. The Borrower has established on its books reserves adequate for the payment of all Federal, state and other tax liabilities
(if any).

 

3.18         Use
of Proceeds. No portion of any loan is to be used for (i) the purpose of purchasing or carrying any “margin security”
or “margin stock” as such terms are used in Regulations U and X of the Board of Governors of the Federal Reserve System,
12 C.F.R. 221 and 224 or (ii) primarily personal, family or household purposes. The Collateral is not used or acquired primarily
for personal, family or household purposes.

 

3.19         Anti-Terrorism
Laws. (a) Neither Borrower nor any Affiliate of Borrower is in violation of any statute, treaty, law (including common law),
ordinance, regulation, rule, order, opinion, release, injunction, writ, decree or award of any Governmental Authority relating
to terrorism or money laundering, including Executive Order No. 13224 and the USA Patriot Act (collectively, “Anti-Terrorism
Law”) or engages in or conspires to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding,
or attempts to violate, any of the prohibitions set forth in any Anti-Terrorism Law. (b) Neither Borrower nor any Affiliate of
Borrower, or to Borrower’s knowledge, any of its respective agents acting or benefiting in any capacity in connection with
the Loans, Letters of Credit or other transactions hereunder, is any of the following (each a “Blocked Person”): (i)
a Person that is listed in the annex to, or is otherwise subject to the provisions of, the Executive Order No. 13224; (ii) a Person
owned or controlled by, or acting for or on behalf of, any Person that is listed in the annex to, or is otherwise subject to the
provisions of, the Executive Order No. 13224; (iii) a Person with which Bank is prohibited from dealing or otherwise engaging
in any transaction by any Anti-Terrorism Law; (iv) a Person that commits, threatens or conspires to commit or supports “terrorism”
as defined in the Executive Order No. 13224; (v) a Person that is named as a “specially designated national” on the
most current list published by the U.S. Treasury Department Office of Foreign Asset Control at its official website or any replacement
website or other replacement official publication of such list; or (vi) a Person who is affiliated with a Person listed above.

 

3.20         Environmental.
As of the date hereof neither the Borrower nor any of Borrower’s agents, employees or Independent contractors (1) have caused
or are aware of a release or threat of release of Hazardous Materials (as defined herein) on any of the premises or personal property
owned or controlled by Borrower (“Controlled Property”) or any property abutting Controlled Property (“Abutting
Property”), which could give rise to liability under any Environmental Law (as defined herein) or any other Federal, 

 

Loan Number
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state
or local law, rule or regulation; (2) have arranged for the transport of or transported any Hazardous Materials in a manner as
to violate, or result in potential liabilities under, any Environmental Law; (3) have received any notice, order or demand from
the Environmental Protection Agency or any other Federal, state or local agency under any Environmental Law; (4) have incurred
any liability under any Environmental Law in connection with the mismanagement, improper disposal or release of Hazardous Materials;
or (5) are aware of any inspection or investigation of any Controlled Property or Abutting Property by any Federal, state or local
agency for possible violations of any Environmental Law.

 

To
the best of Borrower’s knowledge, neither Borrower, nor any prior, owner or tenant of any Controlled Property, committed
or omitted any act which caused the release of Hazardous Materials on such Controlled Property which could give rise to a lien
thereon by any Federal, state or local government. No notice or statement of claim or lien affecting any Controlled Property has
been recorded or filed in any public records by any Federal, state or local government for costs, penalties, fines or other charges
as to such property. All notices, permits, licenses or similar authorizations, if any, required to be obtained or filed in connection
with the ownership, operation, or use of the Controlled Property, including without limitation, the past or present generation,
treatment, storage, disposal or release of any Hazardous Materials into the environment, have been duly obtained or filed.

 

Borrower
agrees to indemnify and hold the Bank harmless from all liability, loss, cost, damage and expense, including attorney fees and
costs of litigation, arising from any and all of its violations of any Environmental Law (including those arising from any lien
by any Federal, state or local government arising from the presence of Hazardous Materials) or from the presence of Hazardous
Materials located on or emanating from any Controlled Property or Abutting Property whether existing or not existing and whether
known or unknown at the time of the execution hereof and regardless of whether or not caused by, or within the control of Borrower.
Borrower further agrees to reimburse Bank upon demand for any costs incurred by Bank in connection with the foregoing. Borrower
agrees that its obligations hereunder shall be continuous and shall survive the repayment of all debts to Bank and shall continue
so long as a valid claim may be lawfully asserted against the Bank.

 

The
term “Hazardous Materials” includes but is not limited to any and all substances (whether solid, liquid or gas) defined,
listed, or otherwise classified as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous
wastes, or words of similar meaning or regulatory effect under any present or future Environmental Law or that may have a negative
impact on human health or the environment, including but not limited to petroleum and petroleum products, asbestos and asbestos-
containing materials, polychlorinated biphenyls, lead, radon, radioactive materials, flammables and explosives.

 

The
term “Environmental Law” means any present and future Federal, state and local laws, statutes, ordinances, rules,
regulations and the like, as well as common law, relating to protection of human health or the environment, relating to Hazardous
Materials, relating to liability for or costs of remediation or prevention of releases of Hazardous Materials or relating to liability
for or costs of other actual or threatened danger to human health or the environment. The term “Environmental Law”
includes, but is not limited to, the following statutes, as amended, any successor thereto, and any regulations promulgated pursuant
thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive
Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous
Materials Transportation Act; the Resource Conservation and Recovery Act (including but not limited to Subtitle I relating to
underground storage tanks); the Solid Waste Disposal Act; the Clean Water Act; the Clean Air Act; the Toxic Substances Control
Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal
Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National Environmental Policy Act; the River and Harbors
Appropriation Act; and 35 PaCSA Chapter 29J.

 

Loan Number
- Note 1: 14773069001

 

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4.     AFFIRMATIVE
COVENANTS

 

4.1           Payments
and Performance. Borrower will duly and punctually pay all Obligations becoming due to the Bank and will duly and punctually
perform all Obligations on its part to be done or performed under this Agreement.

 

4.2           Books
and Records; Inspection. Borrower will at all times keep proper books of account in which full, true and correct entries will
be made of its transactions in accordance with generally accepted accounting principles, consistently applied and which are, in
the opinion of a Certified Public Accountant acceptable to Bank, adequate to determine fairly the financial condition and the
results of operations of Borrower. Borrower will at all reasonable times make its books and records available in its offices for
inspection, examination and duplication by the Bank and the Bank’s representatives and will permit inspection of the Collateral
and all of its properties by the Bank and the Bank’s representatives. Borrower will from time to time furnish the Bank with
such information and statements as the Bank may request in its sole discretion with respect to the Obligations or the Bank’s
security interest in the Collateral. Borrower shall, during the term of this Agreement, keep the Bank currently and accurately
informed in writing of each location where Borrower’s records relating to its accounts and contract rights are kept, and
shall not remove such records to another location without giving the Bank at least thirty (30) days prior written notice thereof.

 

4.3           Financial
Statements. Borrower will furnish to Bank:

 

(a)        as
soon as available to Borrower, but in any event within 45 days after the close of each quarterly period of its fiscal year, a
full and complete signed copy of financial statements, which shall include a balance sheet of the Borrower, as at the end of such
quarter, and statement of profit and loss of the Borrower reflecting the results of its operations during such quarter and shall
be prepared by the Borrower and certified by Borrower’s chief financial officer as to correctness in accordance with generally
accepted accounting principles, consistently applied, subject to year-end adjustments;

 

(b)        as
soon as available to Borrower, but in any event within 150 days after the close of each fiscal year, a full and complete signed
copy of financial statements, prepared by certified public accountants acceptable to Bank, which shall include a balance sheet
of the Borrower, as at the end of such year, statement of cash flows and statement of profit and loss of the Borrower reflecting
the results of its operations during such year, bearing the opinion of such certified public accountants and prepared on an audited
basis in accordance with generally accepted accounting principles, consistently applied together with any so-called management
letter;

 

(c)        within
30 days after the close of each quarterly fiscal period of Borrower, an Accounts Receivable aging report in form satisfactory
to Bank showing the total amount due from each account debtor, the month in which each Account Receivable was created, as well
as an Accounts Payable aging report and such other information as Bank shall request;

 

(d)        within
30 days after the close of each quarter, an inventory report in form satisfactory to Bank showing a list of the Borrower’s
inventory, location of such inventory and such other information as Bank shall request;

 

(e)        Borrower’s
filed Federal tax returns, including all schedules thereto, for the prior year within 150 days of the end of Borrower’s
Fiscal Year each such year or by such other date approved by the Bank;

 

(f)         from
time to time, such financial data and information about Borrower as Bank may reasonably request; and

 

Loan Number
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(g)        any
financial data and information about any guarantors of the Obligations as Bank may reasonably request.

 

4.4           Conduct
of Business. The Borrower will maintain its existence in good standing and comply with all laws and regulations of the United
States and of any state or states thereof and of any political subdivision thereof, and of any governmental authority which may
be applicable to it or to its business; provided that this covenant shall not apply to any tax, assessment or charge which is
being contested in good faith and with respect to which reserves have been established and are being maintained.

 

4.5           Notice
to Account Debtors. The Borrower agrees, at the request of the Bank, to notify all or any of the Debtors in writing of the
Bank’s security interest in the Collateral in whatever manner the Bank requests and, hereby authorizes the Bank to notify
all or any of the Debtors of the Bank’s security interest in the Borrower’s accounts at the Borrower’s expense.

 

4.6           Contact
with Accountant. The Borrower hereby authorizes the Bank to directly contact and communicate with any accountant employed
by Borrower in connection with the review and/or maintenance of Borrower’s books and records or preparation of any financial
reports delivered by or at the request of Borrower to Bank.

 

4.7           Operating
and Deposit Accounts. The Borrower agrees to maintain with the Bank its primary operating and/or deposit accounts.

 

4.8           Taxes.
Borrower will promptly pay all real and personal property taxes, assessments and charges and all franchise, income, unemployment,
retirement benefits, withholding, sales and other taxes assessed against it or payable by it before delinquent; provided that
this covenant shall not apply to any tax assessment or charge which is being contested in good faith and with respect to which
reserves have been established and are being maintained. The Bank may, at its option, from time to time, discharge any taxes,
liens or encumbrances of any of the Collateral, and the Borrower will pay to the Bank on demand or the Bank in its sole discretion
may charge to the Borrower all amounts so paid or incurred by it.

 

4.9           Maintenance.
Borrower will keep and maintain the Collateral and its other properties, if any, in good repair, working order and condition.
Borrower will immediately notify the Bank of any loss or damage to or any occurrence which would adversely affect the value of
any Collateral. The Bank may, at its option, from time to time, take any other action that the Bank may deem proper to repair,
maintain or preserve any of the Collateral, and the Borrower will pay to the Bank on demand or the Bank in its sole discretion
may charge to the Borrower all amounts so paid or incurred by it.

 

4.10         Insurance.
Borrower will maintain in force property and casualty insurance on all Collateral and any other property of the Borrower, if any,
against risks customarily insured against by companies engaged in businesses similar to that of the Borrower containing such terms
and written by such companies as may be satisfactory to the Bank, such insurance to be payable to the Bank as its interest may
appear in the event of loss and to name the Bank as insured pursuant to a standard loss payee clause; no loss shall be adjusted
thereunder without the Bank’s approval; and all such policies shall provide that they may not be canceled without first
giving at least Thirty (30) days written notice of cancellation to the Bank. In the event that the Borrower fails to provide evidence
of such insurance, the Bank may, at its option, secure such insurance and charge the cost thereof to the Borrower. At the option
of the Bank, all insurance proceeds received from any loss or damage to any of the Collateral shall be applied either to the replacement
or repair thereof or as a payment on account of the Obligations. From and after the occurrence of an Event of Default, the Bank
is authorized to cancel any insurance maintained hereunder and apply any returned or unearned premiums, all of which are hereby
assigned to the Bank, as a payment on account of the Obligations.

 

4.11         Notification
of Default. Immediately upon becoming aware of the existence of any condition or event which constitutes an Event of Default,
or any condition or event which would upon notice or 

 

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lapse
of time, or both, constitute an Event of Default, Borrower shall give Bank written notice thereof specifying the nature and duration
thereof and the action being or proposed to be taken with respect thereto.

 

4.12         Notification
of Material Litigation. Borrower will immediately notify the Bank in writing of any litigation or of any investigative proceedings
of a governmental agency or authority commenced or threatened against it which
would or might be materially adverse to the financial condition of Borrower or any guarantor of the Obligations.

 

4.13         Pension
Plans. With respect to any pension or benefit plan maintained by Borrower, or to which Borrower contributes (“Plan”),
the benefits under which are guarantied, in whole or in part, by the Pension Benefit Guaranty Corporation created by the Employee
Retirement Income Security Act of 1974, P.L. 93-406, as amended (“ERISA”) or any governmental authority succeeding
to any or all of the functions of the Pension Benefit Guaranty Corporation (“Pension Benefit Guaranty Corporation”),
Borrower will (a) fund each Plan as required by the provisions of Section 412 of the Internal Revenue Code of 1986, as amended;
(b) cause each Plan to pay all benefits when due; (c) furnish Bank (i) promptly with a copy of any notice of each Plan’s
termination sent to the Pension Benefit Guaranty Corporation (ii) no later than the date of submission to the Department of Labor
or to the Internal Revenue Service, as the case may be, a copy of any request for waiver from the funding standards or extension
of the amortization periods required by Section 412 of the Internal Revenue Code of 1986, as amended and (iii) notice of any Reportable
Event as such term is defined in ERISA; and (d) subscribe to any contingent liability insurance provided by the Pension Benefit
Guaranty Corporation to protect against employer liability upon termination of a guarantied pension plan, if available to Borrower.

 

5.     NEGATIVE
COVENANTS

 

5.1           Financial
Covenants. The Borrower will not at any time or during any fiscal period (as applicable) fail to be in compliance with any
of the financial covenants in this section.

 

		(a)	Definitions. The following definitions shall apply
to this Section:

 

(i)          “GAAP”
shall mean Generally Accepted Accounting Principles in effect from time to time in the United States.

 

(ii)         “Current
Liabilities” shall mean current liabilities as defined under GAAP.

 

(iii)        “Marketable
Securities” shall mean stocks, bonds and mutual fund shares that can be readily sold for cash on stock exchanges or over-the-counter
markets.”

 

(iv)        “Net
Worth” shall mean, as of the date of determination thereof, total assets minus total liabilities.

 

		(b)	Quick Ratio. The Borrower shall not permit the ratio
of its cash on hand, plus the value of its Marketable Securities, plus accounts receivable (minus an amount reserved in accordance
with GAAP for doubtful collections on such accounts receivable), to Current Liabilities to be less than 1.5 to 1.0 at the end
of each fiscal quarter.

 

		(c)	Net Worth. The Borrower shall not permit its Net
Worth to be less than $3,500,000.00 at the end of each fiscal quarter.

 

		(d)	Dividends. No dividends shall be paid without Bank
approval.

 

5.2           Limitations
on Indebtedness. Borrower shall not issue any evidence of indebtedness or create, assume, guarantee, become contingently liable
for, or suffer to exist indebtedness in addition to

 

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 indebtedness to the Bank, except indebtedness or liabilities of Borrower,
other than for money borrowed, incurred or arising in the ordinary course of business.

 

5.3           Sale
of interest. There shall not be any sale or transfer of ownership of any interest in the Borrower without the Bank’s
prior written consent unless such transfer shall not result in change in control of Borrower.

 

5.4           Loans
or Advances. Borrower shall not make any loans or advances to any individual, partnership, corporation, limited liability
company, trust, or other organization or person, including without limitation its officers and employees; provided, however, that
Borrower may make advances to its employees, including its officers, with respect to expenses incurred or to be incurred by such
employees in the ordinary course of business which expenses are reimbursable by Borrower; and provided further, however, that
Borrower may extend credit in the ordinary course of business in accordance with customary trade practices.

 

5.5           Dividends
and Distributions. Borrower shall not, without prior written consent of the Bank, pay any dividends on or make any distribution
on account of any class of Borrower’s capital stock in cash or in property (other than additional shares of such stock),
or redeem, purchase or otherwise acquire, directly or indirectly, any of such stock, except, so long as Borrower is not in default
hereunder, if Borrower is a Subchapter S corporation, under the regulations of the Internal Revenue Service of the United States,
distributions to the Shareholders of Borrower in such amounts as are necessary to pay the tax liability of such Shareholders due
as a result of such Shareholders’ interest in the Borrower.

 

5.6           Investments.
The Borrower shall not make investments in, or advances to, any individual, partnership, corporation, limited liability company,
trust or other organization or person other than as previously specifically consented to in writing by the Bank. The Borrower
will not purchase or otherwise invest in or hold securities, nonoperating real estate or other nonoperating assets or purchase
all or substantially all the assets of any entity other than as previously specifically consented to in writing by the Bank.

 

5.7           Merger.
Borrower will not merge or consolidate or be merged or consolidated with or into any other entity.

 

5.8           Capital
Expenditures. The Borrower shall not, directly or indirectly, make or commit to make capital expenditures by lease, purchase,
or otherwise, except in the ordinary and usual course of business for the purpose of replacing machinery, equipment or other personal
property which, as a consequence of wear, duplication or obsolescence, is no longer used or necessary in the Borrower’s
business.

 

5.9           Sale
of Assets. Borrower shall not sell, lease or otherwise dispose of any of its assets, except in the ordinary and usual course
of business and except for the purpose of replacing machinery, equipment or other personal property which, as a consequence of
wear, duplication or obsolescence, is no longer used or necessary in the Borrower’s business, provided that fair consideration
is received therefor; provided, however, in no event shall the Borrower sell, lease or otherwise dispose of any equipment purchased
with the proceeds of any loans made by the Bank.

 

5.10         Restriction
on Liens. Borrower shall not grant any security interest in, or mortgage of, any of its properties or assets including the
Collateral. Borrower shall not enter into any agreement with any person other than the Bank that prohibits the Borrower from granting
any security interest in, or mortgage of, any of its properties or assets including the Collateral.

 

5.11         Other
Business. Borrower shall not engage in any business other than the business in which it is currently engaged or a business
reasonably allied thereto.

 

5.12         Change
of Name, etc. Borrower shall not change its legal name or the State or the type of its 

 

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organization, without giving the Bank
at least 30 days prior written notice thereof.

 

6.     DEFAULT

 

6.1           Default. “Event of Default” shall mean the occurrence of one or more of any of the following events:

 

(a)        default
of any liability, obligation, covenant or undertaking of the Borrower or any guarantor of the Obligations to the Bank, hereunder
or otherwise, including, without limitation, failure to pay in full and when due any installment of principal or interest or default
of the Borrower or any guarantor of the Obligations under any other Loan Document or any other agreement with the Bank continuing
for 15 days with respect to any default (other than with respect to the payment of money for which there is no grace period);

 

(b)        failure
of the Borrower or any guarantor of the Obligations to maintain aggregate collateral security value satisfactory to the Bank continuing
for 15 days;

 

(c)        default
of any material liability, obligation or undertaking of the Borrower or any guarantor of the Obligations to any other party continuing
for 15 days;

 

(d)        if
any statement, representation or warranty heretofore, now or hereafter made by the Borrower or any guarantor of the Obligations
in connection with this Agreement or in any supporting financial statement of the Borrower or any guarantor of the Obligations
shall be determined by the Bank to have been false or misleading in any material respect when made;

 

(e)        if
the Borrower or any guarantor of the Obligations is a corporation, trust, partnership or limited liability company, the liquidation,
termination or dissolution of any such organization, or the merger or consolidation of such organization into another entity,
or its ceasing to carry on actively its present business or the appointment of a receiver for its property;

 

(f)         the
death of the Borrower or any guarantor of the Obligations and, if the Borrower or any guarantor of the Obligations is a partnership
or limited liability company, the death of any partner or member;

 

(g)        the
institution by or against the Borrower or any guarantor of the Obligations of any proceedings under the Bankruptcy Code 11 USC
§101 et seq. or any other law in which the Borrower or any guarantor of
the Obligations is alleged to be insolvent or unable to pay its debts as they mature, or the making by the Borrower or any guarantor
of the Obligations of an assignment for the benefit of creditors or the granting by the Borrower or any guarantor of the Obligations
of a trust mortgage for the benefit of creditors;

 

(h)        the
service upon the Bank of a writ in which the Bank is named as trustee of the Borrower or any guarantor of the Obligations;

 

(i)         a
judgment or judgments for the payment of money shall be rendered against the Borrower or any guarantor of the Obligations, and
any such judgment shall remain unsatisfied and in effect for any period of thirty (30) consecutive days without a stay of execution;

 

(j)         any
levy, lien (including mechanics lien), seizure, attachment, execution or similar process shall be issued or levied on any of the
property of the Borrower or any guarantor of the Obligations;

 

(k)        the
termination or revocation of any guaranty of the Obligations; or

 

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(l)         the
occurrence of such a change in the condition or affairs (financial or otherwise) of the Borrower or any guarantor of the Obligations,
or the occurrence of any other event or circumstance, such that the Bank, in its sole discretion, deems that it is insecure or
that the prospects for timely or full payment or performance of any obligation of the Borrower or any guarantor of the Obligations
to the Bank has been or may be impaired.

 

6.2           Acceleration.
If an Event of Default shall occur, at the election of the Bank, all Obligations shall become immediately due and payable without
notice or demand, except with respect to Obligations payable on DEMAND, which shall be due and payable on DEMAND, whether or not
an Event of Default has occurred.

 

The
Bank is hereby authorized, at its election, after an Event of Default or after Demand, without any further demand or notice except
to such extent as notice may be required by applicable law, to take possession and/or sell or otherwise dispose of all or any
of the Collateral at public or private sale; and the Bank may also exercise any and all other rights and remedies of a secured
party under the Code or which are otherwise accorded to it in equity or at law, all as Bank may determine, and such exercise of
rights in compliance with the requirements of law will not be considered adversely to affect the commercial reasonableness of
any sale or other disposition of the Collateral. If notice of a sale or other action by the Bank is required by applicable law,
unless the Collateral is perishable or threatens to decline speedily in value or is of a type customarily sold on a recognized
market, the Borrower agrees that ten (10) days written notice to the Borrower, or the shortest period of written notice permitted
by such law, whichever is smaller, shall be sufficient notice; and that to the extent permitted by law, the Bank, its officers,
attorneys and agents may bid and become purchasers at any such sale, if public, and may purchase at any private sale any of the
Collateral that is of a type customarily sold on a recognized market or which is the subject of widely distributed standard price
quotations. Any sale (public or private) shall be without warranty and free from any right of redemption, which the Borrower shall
waive and release after default upon the Bank’s request therefor, and may be free of any warranties as to the Collateral
if Bank shall so decide. No purchaser at any sale (public or private) shall be responsible for the application of the purchase
money. Any balance of the net proceeds of sale remaining after paying all Obligations of the Borrower to the Bank shall be returned
to such other party as may be legally entitled thereto; and if there is a deficiency, the Borrower shall be responsible for repayment
of the same, with interest. Upon demand by the Bank, the Borrower shall assemble the Collateral and make it available to the Bank
at a place designated by the Bank which is reasonably convenient to the Bank and the Borrower. The Borrower hereby acknowledges
that the Bank has extended credit and other financial accommodations to the Borrower upon reliance of the Borrower’s granting
the Bank the rights and remedies contained in this Agreement including without limitation the right to take immediate possession
of the Collateral upon the occurrence of an Event of Default or after DEMAND with respect to Obligations payable on DEMAND and
the Borrower hereby acknowledges that the Bank is entitled to equitable and injunctive relief to enforce any of its rights and
remedies hereunder or under the Code and the Borrower hereby waives any defense to such equitable or injunctive relief based upon
any allegation of the absence of irreparable harm to the Bank.

 

The
Bank shall not be required to marshal any present or future security for (including but not limited to this Agreement and the
Collateral subject to the security interest created hereby), or guarantees of, the Obligations or any of them, or to resort to
such security or guarantees in any particular order; and all of its rights hereunder and in respect of such securities and guaranties
shall be cumulative and in addition to all other rights, however existing or arising. To the extent that it lawfully may do so,
the Borrower hereby agrees that it will not invoke and irrevocably waives the benefits of any law relating to the marshaling of
collateral which might cause delay in or impede the enforcement of the Bank’s rights under this Agreement or under any other
instrument evidencing any of the Obligations or under which any of the Obligations is outstanding or by which any of the Obligations
is secured or guaranteed. Except as required by applicable law, the Bank shall have no duty as to the collection or protection
of the Collateral or any income thereon, nor as to the preservation of rights against prior parties, nor as to the preservation
of any rights pertaining thereto beyond the safe custody thereof.

 

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6.3           Power
of Attorney. The Borrower hereby irrevocably constitutes and appoints the Bank as the Borrower’s true and lawful attorney,
with full power of substitution, at the sole cost and expense of the Borrower but for the sole benefit of the Bank, upon the occurrence
of an Event of Default or after DEMAND with respect to Obligations payable on DEMAND, to convert the Collateral into cash, including,
without limitation, completing the manufacture or processing of work in process, and the sale (either public or private) of all
or any portion or portions of the inventory and other Collateral; to enforce collection of the Collateral, either in its own name
or in the name of the Borrower, including, without limitation, executing releases or waivers, compromising or settling with any
Debtors and prosecuting, defending, compromising or releasing any action relating to the Collateral; to receive, open and dispose
of all mail addressed to the Borrower and to take therefrom any remittances or proceeds of Collateral in which the Bank has a
security interest; to notify Post Office authorities to change the address for delivery of mail addressed to the Borrower to such
address as the Bank shall designate; to endorse the name of the Borrower in favor of the Bank upon any and all checks, drafts,
money orders, notes, acceptances or other instruments of the same or different nature; to sign and endorse the name of the Borrower
on and to receive as secured party any of the Collateral, any invoices, freight or express receipts, or bills of lading, storage
receipts, warehouse receipts, or other documents of title of the same or different nature relating to the Collateral; to sign
the name of the Borrower on any notice of the Debtors or on verification of the Collateral; and to sign, if necessary, and file
or record on behalf of the Borrower any financing or other statement in order to perfect or protect the Bank’s security
interest. The Bank shall not be obliged to do any of the acts or exercise any of the powers hereinabove authorized, but if the
Bank elects to do any such act or exercise any such power, it shall not be accountable for more than it actually receives as a
result of such exercise of power, and it shall not be responsible to the Borrower except for its own gross negligence or willful
misconduct. All powers conferred upon the Bank by this Agreement, being coupled with an interest, shall be irrevocable so long
as any Obligation of the Borrower or any guarantor or surely to the Bank shall remain unpaid or the Bank is obligated under this
Agreement to extend any credit to the Borrower.

 

6.4           Nonexclusive
Remedies. All of the Bank’s rights and remedies not only under the provisions of this Agreement but also under any other
agreement or transaction shall be cumulative and not alternative or exclusive, and may be exercised by the Bank at such time or
times and in such order of preference as the Bank in its sole discretion may determine.

 

6.5           Reassignment
to Borrower. Whenever the Bank deems it desirable that any legal action be instituted with respect to any Collateral or that
any other action be taken in any attempt to effectuate collection of any Collateral, the Bank may reassign the item in question
to the Borrower (and if the Bank shall execute any such reassignment, it shall automatically be deemed to be without recourse
to the Bank in any event) and require the Borrower to proceed with such legal or other action at the Borrower’s sole liability,
cost and expense, in which event all amounts collected by the Borrower on such item shall nevertheless be subject to the Bank’s
security interest.

 

7.     MISCELLANEOUS

 

7.1           Waivers.
The Borrower waives notice of intent to accelerate, notice of acceleration, notice of nonpayment, demand, presentment, protest
or notice of protest of the Obligations, and all other notices, consents to any renewals or extensions of time of payment thereof,
and generally waives any and all suretyship defenses and defenses in the nature thereof.

 

7.2           Waiver
of Homestead. To the maximum extent permitted under applicable law, the Borrower hereby waives and terminates any homestead
rights and/or exemptions respecting any of its property under the provisions of any applicable homestead laws, including without
limitation, Title 42, Section 8123, of the Pennsylvania Consolidated Statutes
Annotated.

 

7.3           Severability.
If any provision of this Agreement or portion of such provision or the application thereof to any person or circumstance shall
to any extent be held invalid or unenforceable, the remainder 

 

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of this Agreement (or the remainder of such provision) and the application
thereof to other persons or circumstances shall not be affected thereby.

 

7.4           Deposit
Collateral. The Borrower hereby grants to the Bank a continuing lien and security interest in any and all deposits or other
sums at any time credited by or due from the Bank or any Bank Affiliate to the Borrower and any cash, securities, instruments
or other property of the Borrower in the possession of the Bank or any Bank Affiliate, whether for safekeeping or otherwise, or
in transit to or from the Bank or any Bank Affiliate (regardless of the reason the Bank or Bank Affiliate had received the same
or whether the Bank or Bank Affiliate has conditionally released the same) as security for the full and punctual payment and performance
of all of the liabilities and obligations of the Borrower to the Bank or any Bank Affiliate and such deposits and other sums may
be applied or set off against such liabilities and obligations of the Borrower to the Bank or any Bank Affiliate at any time,
whether or not such are then due, whether or not demand has been made and whether or not other collateral is then available to
the Bank or any Bank Affiliate.

 

7.5           Indemnification.
The Borrower shall indemnify, defend and hold the Bank and its directors, officers, employees, agents and attorneys (each an ‘‘Indemnitee”)
harmless of and from any claim brought or threatened against any indemnitee by the Borrower, any guarantor or endorser of the
Obligations, or any other person (as well as from reasonable attorneys’ fees and expenses in connection therewith) on account
of the Bank’s relationship with the Borrower, or any guarantor or endorser of the Obligations (each of which may be defended,
compromised, settled or pursued by the Bank with counsel of the Bank’s election, but at the expense of the Borrower), except
for any claim arising out of the gross negligence or willful misconduct of the Bank. The within indemnification shall survive
payment of the Obligations, and/or any termination, release or discharge executed by the Bank in favor of the Borrower.

 

7.6           Costs
and Expenses. The Borrower shall pay to the Bank on demand any and all costs and expenses (Including, without limitation,
reasonable attorneys’ fees and disbursements, court costs, litigation and other expenses) incurred or paid by the Bank in
establishing, maintaining, protecting or enforcing any of the Bank’s rights or the Obligations, including, without limitation,
any and all such costs and expenses incurred or paid by the Bank in defending the Bank’s security interest in, title or
right to the Collateral or in collecting or attempting to collect or enforcing or attempting to enforce payment of the Obligations.

 

7.7           Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be an original, but all of which shall constitute
but one agreement.

 

7.8           Complete
Agreement. This Agreement and the other Loan Documents constitute the entire agreement and understanding between and among
the parties hereto relating to the subject matter hereof, and supersedes all prior proposals, negotiations, agreements and understandings
among the parties hereto with respect to such subject matter.

 

7.9           Binding
Effect of Agreement. This Agreement shall be binding upon and inure to the benefit of the respective heirs, executors, administrators,
legal representatives, successors and assigns of the parties hereto, and shall remain in full force and effect (and the Bank shall
be entitled to rely thereon) until released in writing by the Bank. The Bank may transfer and assign this Agreement and deliver
the Collateral to the assignee, who shall thereupon have all of the rights of the Bank; and the Bank shall then be relieved and
discharged of any responsibility or liability with respect to this Agreement and the Collateral. The Borrower may not assign or
transfer any of its rights or obligations under this Agreement. Except as expressly provided herein or in the other Loan Documents,
nothing, expressed or implied, is intended to confer upon any party, other than the parties hereto, any rights, remedies, obligations
or liabilities under or by reason of this Agreement or the other Loan Documents.

 

7.10         Further
Assurances. Borrower will from time to time execute and deliver to Bank such documents, and take or cause to be taken, all
such other or further action, as Bank may request in order to effect and confirm or vest more securely in Bank all rights contemplated
by this Agreement and the 

 

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other
Loan Documents (including, without limitation, to correct clerical errors) or to vest more fully in or assure to the Bank the
security interest in the Collateral granted to the Bank by this Agreement or to comply with applicable statute or law and to facilitate
the collection of the Collateral (including, without limitation, the execution of stock transfer orders and stock powers, endorsement
of promissory notes and instruments and notifications to obligors on the Collateral). To the extent permitted by applicable law,
Borrower authorizes the Bank to file financing statements, continuation statements or amendments, and any such financing statements,
continuation statements or amendments may be filed at any time in any jurisdiction. Bank may at any time and from time to time
file financing statements, continuation statements and amendments thereto which contain any information required by the Code for
the sufficiency or filing office acceptance of any financing statement, continuation statement or amendment, including whether
Borrower is an organization, the type of organization and any organization identification number issued to Borrower. Borrower
agrees to furnish any such information to Bank promptly upon request. In addition, Borrower shall at any time and from time to
time take such steps as Bank may reasonably request for Bank (i) to obtain an acknowledgment, in form and substance satisfactory
to Bank, of any bailee having possession of any of the Collateral that the bailee holds such Collateral for Bank, (ii) to obtain
“control” (as defined in the Code) of any Collateral comprised of deposit accounts, electronic chattel paper, letter
of credit rights or investment property, with any agreements establishing control to be in form and substance satisfactory to
Bank, and (ill) otherwise to insure the continued perfection and priority of Bank’s security interest in any of the Collateral
and the preservation of its rights therein. Borrower hereby constitutes Bank its attorney-in-fact to execute, if necessary, and
file all filings required or so requested for the foregoing purposes, all acts of such attorney being hereby ratified and confirmed;
and such power, being coupled with an interest, shall be irrevocable until this Agreement terminates in accordance with its terms,
all Obligations are irrevocably paid in full and the Collateral is released.

 

The
Borrower agrees to execute, re-execute, cause any Guarantor(s) or other third party(ies) involved in the loan transaction to execute
and/or re-execute and to deliver to Bank or its legal counsel, as may be deemed appropriate, any document or instrument signed
in connection with the Loan(s) which was incorrectly drafted and/or signed, as well as any document or instrument which should
have been signed at or prior to the closing of the Loan(s), but which was not so signed and delivered. Borrower agrees to comply
with any written request by Bank within ten (10) days after receipt by Borrower of such request. Failure by Borrower to so comply
shall, at the option of Bank, upon notice to Borrower, constitute an event of default under the Loan(s). The Borrower authorizes
the Bank to make any credit inquiries Bank deems necessary and authorizes any person or credit reporting agency to give Bank a
copy of the Borrower’s credit report and any other financial information it may have.

 

7.11         Amendments
and Waivers. This Agreement may be amended and Borrower may take any action herein prohibited, or omit to perform any act
herein required to be performed by it, if Borrower shall obtain the Bank’s prior written consent to each such amendment,
action or omission to act. No course of dealing and no delay or omission on the part of Bank in exercising any right hereunder
shall operate as a waiver of such right or any other right and waiver on any one or more occasions shall not be construed as a
bar to or waiver of any right or remedy of Bank on any future occasion.

 

7.12         Terms
of Agreement. This Agreement shall continue in full force and effect so long as any Obligations or obligation of Borrower
to Bank shall be outstanding, or the Bank shall have any obligation to extend any financial accommodation hereunder, and is supplementary
to each and every other agreement between Borrower and Bank and shall not be so construed as to limit or otherwise derogate from
any of the rights or remedies of Bank or any of the liabilities, obligations or undertakings of Borrower under any such agreement,
nor shall any contemporaneous or subsequent agreement between Borrower and the Bank be construed to limit or otherwise derogate
from any of the rights or remedies of Bank or any of the liabilities, obligations or undertakings of Borrower hereunder, unless
such other agreement specifically refers to this Agreement and expressly so provides.

 

7.13         Notices.
Any notice under or pursuant to this Agreement shall be a signed writing or other authenticated record (within the meaning of
Article 9 of the Code). Any notices under or pursuant to this Agreement shall be deemed duly received and effective if delivered
in hand to any officer of agent of the Borrower or Bank, or if mailed by registered or certified mail, return receipt requested,
addressed to the 

 

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Borrower
or Bank at the address set forth in this Agreement or as any party may from time to time designate by written notice to the other
party; notwithstanding the foregoing notices to the Bank with respect to accounting and collateral release and notices to the
Trustee pursuant to a Deed of Trust shall be sent to the Bank as follows: Attention: VP Loan Servicing, Loan Services, 6000 Atrium
Way Mt. Laurel NJ 08054.

 

7.14         Governing
Law. This Agreement shall take effect as a sealed instrument and has been executed or completed and/or is to be performed
in Pennsylvania, and it and all transactions thereunder or pursuant thereto shall be governed as to interpretation, validity,
effect, rights, duties and remedies of the parties thereunder and in all other respects by the laws of Pennsylvania without giving
effect to the conflicts of laws principles thereof.

 

7.15         Reproductions.
This Agreement and all documents which have been or may be hereinafter furnished by Borrower to the Bank may be reproduced by
the Bank by any photographic, photostatic, microfilm, xerographic or similar process, and any such reproduction shall be admissible
in evidence as the original itself in any judicial or administrative proceeding (whether or not the original is in existence and
whether or not such reproduction was made in the regular course of business).

 

7.16         Publicity
and Signage. The Bank, in Its sole discretion, shall have the right to announce and publicize the source of financing made
pursuant to this Agreement, as it deems appropriate, by means and media selected by the Bank. Such publication shall include all
pertinent information relating to such financing, including without limitation, the term, purpose, pricing, loan amount, name
of borrowing entity and location of property. The Bank shall also have the right to display a sign at any real property respecting
which the Bank has a security interest which indicates that the Bank is providing the financing. If such sign is provided, the
Borrower shall cause the sign to be displayed as requested by the Bank and shall maintain such display during the period requested
by the Bank. The form and content of the sign and/or published information shall be in the sole discretion of the Bank and shall
be considered the sole and exclusive property of the Bank. All expenses related to publicizing the financing shall be the sole
responsibility of the Bank.

 

7.17         Cancellation
Fees. All fees required to cancel, satisfy or terminate the collateral documents securing this Loan shall be paid by Borrower
at the time of payoff of the Loan.

 

7.18         Jurisdiction
and Venue. Borrower irrevocably submits to the nonexclusive jurisdiction of any Federal or state court sitting in Pennsylvania,
over any suit, action or proceeding arising out of or relating to this Agreement. Borrower irrevocably waives, to the fullest
extent It may effectively do so under applicable law, any objection it may now or hereafter have to the laying of the venue of
any such suit, action or proceeding brought in any such court and any claim that the same has been brought in an inconvenient
forum. Borrower hereby consents to any and all process which may be served in any such suit, action or proceeding, (i) by mailing
a copy thereof by registered and certified mail, postage prepaid, return receipt requested, to the Borrower’s address shown
in this Agreement or as notified to the Bank and (ii) by serving the same upon the Borrower in any other manner otherwise permitted
by law, and agrees that such service shall in every respect be deemed effective service upon Borrower.

 

7.19         JURY
WAIVER. THE BORROWER AND BANK EACH HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY, AND AFTER AN OPPORTUNITY TO CONSULT WITH
LEGAL COUNSEL, (A) WAIVE ANY AND ALL RIGHTS TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING IN CONNECTION WITH THIS AGREEMENT,
THE OBLIGATIONS, ALL MATTERS CONTEMPLATED HEREBY AND DOCUMENTS EXECUTED IN CONNECTION HEREWITH AND (B) AGREE NOT TO SEEK TO CONSOLIDATE
ANY SUCH ACTION WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE, OR HAS NOT BEEN, WAIVED. THE BORROWER CERTIFIES THAT NEITHER
THE BANK NOR ANY OF ITS REPRESENTATIVES, AGENTS OR COUNSEL HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WOULD NOT IN
THE EVENT OF ANY SUCH PROCEEDING SEEK TO ENFORCE THIS WAIVER OF RIGHT TO TRIAL BY JURY.

 

Loan Number
- Note 1: 14773069001

 

    	18

    	 

    

 

Executed
as an instrument under seal as of January 15, 2013.

 

	 	Borrower:
	 	 	
	 	Wireless
    Xcessories Group, Inc.
	 	 	
	 	By:	
    
	 	 	Stephen
    Rade, President

 

Accepted:
TD Bank, N.A.

 

	By:		 
	Name:
    David R. Ohman	 
	Title:
    Duly Authorized Representative	 

 

Loan Number
- Note 1: 14773069001

    	19

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