Document:

THIS INSTRUMENT AND THE RIGHTS AND OBLIGATIONS EVIDENCED HEREBY ARE
      SUBORDINATE IN THE MANNER AND TO THE EXTENT SET FORTH IN THAT CERTAIN SUBORDINATION AGREEMENT (THE “SUBORDINATION AGREEMENT”) DATED AS OF JUNE 2, 2020, AMONG THE PAYEE
      (AS DEFINED BELOW), RCM TECHNOLOGIES, INC., A NEVADA CORPORATION, AND CITIZENS BANK, N.A.

    

    

    THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
      AS AMENDED (THE “SECURITIES ACT”), OR THE SECURITIES LAWS OF ANY STATE.  NEITHER THIS NOTE, NOR ANY PORTION THEREOF, NOR ANY INTEREST THEREIN, MAY BE OFFERED OR SOLD
      EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT, OR AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE SECURITIES ACT AND SUCH STATE LAWS.

    

    

    

    

    

    

    

    

    9.00% SUBORDINATED NOTE

    
      	
              U.S. $2,229,766.80

            	
              JUNE 2, 2020

            

    

     

    FOR VALUE RECEIVED, and intending to be legally bound, RCM Technologies, Inc., a Nevada corporation (the “Maker”), on this ___ day of June, 2020, hereby promises to pay, in lawful money of the United States of America, which shall be legal tender for payment of public and
      private debts, to the order of IRS Partners No. 19, L.P. (the “Payee”), at the address of c/o Harvest Financial Corporation, 1600 Benedum-Trees Bldg., 223 Fourth Ave.,
      Pittsburgh, PA 15222, or at such other place as the Payee shall from time to time designate in writing, the principal amount of TWO MILLION TWO HUNDRED TWENTY-NINE THOUSAND SEVEN HUNDRED SIXTY-SIX DOLLARS AND EIGHTY CENTS ($2,229,766.80) in
      accordance with the terms contained in this 9.00% Subordinated Note (this “Note”), the Subordination Agreement and that certain Stock Purchase Agreement dated as of the
      date hereof, by and among the Maker, the other Purchasers named therein and the Selling Stockholders named therein (the “Purchase Agreement”). In addition, the Maker
      hereby agrees to pay interest on the unpaid principal balance of this Note from September 1, 2020 until paid at the annual rate of 9.00% (the “Interest Rate”),
      compounded annually, calculated on the basis of a 360-day year consisting of twelve 30-day months in accordance with the terms set forth below in this Note.  Each holder of this Note, by its acceptance hereof, irrevocably agrees to be bound by the
      terms set forth herein.

    

    

    1. Scheduled Payments.  Subject to the
        provisions of the Subordination Agreement, the Maker shall pay interest quarterly in arrears commencing on September 1, 2020 and continuing on each December 1, March 1, June 1 and September 1 thereafter.  Subject to the provisions of the
        Subordination Agreement, the Maker shall pay the principal amount of this Note on or before August 10, 2023 (the “Maturity Date”). To the extent permitted by the
        Subordination Agreement, the outstanding principal amount of this Note may be prepaid, in whole or in part, at any time and without penalty or premium.

    2. Default.  The Maker shall be in default
        hereunder upon the occurrence of any of the following events (each an “Event of Default”): (a) if the Maker fails to pay the unpaid principal amount of this Note on
        the Maturity Date and such failure continues for at least five days after notice of the failure; (b) if any written representation or warranty now or hereafter made by the Maker in connection with the debt evidenced by this Note is false or
        incorrect in any material respect and is not cured within 30 days of written notice thereof; (c) if the Maker shall (i) apply for or consent to the appointment of a receiver, 

    
      
        

        

        

      

      
        

    

    
    custodian, trustee or liquidator of itself or of all or a substantial part of its property,
        (ii) be generally unable to pay its debts as such debts become due, (iii) make a general assignment for the benefit of its creditors, (iv) commence a voluntary case under the United States Bankruptcy Code (11 U.S.C. § 101 et seq.), as amended (the
        “Federal Bankruptcy Code”), or any successor statute, (v) file a petition seeking to take advantage of any other law providing for the relief of debtors, (vi) fail to
        controvert in a timely or appropriate manner, or acquiesce in writing to, any petition filed against the Maker in any involuntary case under such Federal Bankruptcy Code, or (vii) take any corporate action for the purpose of effecting any of the
        foregoing; or (d) if a proceeding or case shall be commenced against the Maker in any court of competent jurisdiction for (i) the winding up, or composition or readjustment of debts, of the Maker, (ii) the appointment of a trustee, receiver,
        custodian, liquidator or the like of the Maker or of all or any substantial part of its assets, or (iii) similar relief in respect of the Maker under any law providing for the relief of debtors, and such proceeding or case shall continue
        undismissed, or unstayed and in effect, for a period of 60 days, or an order for relief against the Maker shall be entered in an involuntary case under such Federal Bankruptcy Code. 

    3. Remedies.

    (a) Upon the occurrence of an Event of Default that shall be continuing, the balance of principal of and all accrued interest
        upon this Note shall become immediately due and payable (i) without any action or notice of any kind on the part of the Payee in the case of the occurrence of an Event of Default described in paragraphs (c) or (d) of Section 2 above; or (ii) in the case of other Events of Default, only upon declaration of such default by the Payee.

    (b) The rights, powers and remedies provided herein in favor of the Payee shall not be deemed exclusive, but shall be
        cumulative, and shall be in addition to all other rights and remedies in favor of the Payee existing at law or in equity, including all of the rights, powers and remedies available to a creditor under the Uniform Commercial Code as in effect in the
        State of Nevada or any other appropriate jurisdiction, and may be exercised concurrently, independently or successively by the Payee in its discretion.

    (c) The Maker shall pay on demand all costs of collection, including reasonable attorneys’ fees, incurred by the Payee with
        respect to any default by the Maker hereunder.  Such amounts, until paid by the Maker, shall be added to the principal hereof and bear interest at the Interest Rate.

    4. Transfer. Neither this Note nor the right
        to receive payments hereunder may be transferred, assigned, pledged, hypothecated or otherwise encumbered, nor may any interest be granted herein or therein  without the prior written consent of the Maker.

    5. Waivers; Amendments.  No delay on the part
        of the Payee in exercising any of its options, powers or rights, and no partial or single exercise thereof, shall constitute a waiver thereof or of any other option, power or right.  The Payee shall not be deemed by any act or omission to have
        waived any such right or remedy or any default by the Maker hereunder unless such waiver is in writing, and then only to the extent specifically set forth in the writing.  Any such waiver shall not be construed as a continuing waiver or as a bar to
        or waiver of any right or remedy with respect to any other default by the Maker.  None of the terms and conditions of this Note may be amended, modified or waived, except in a writing properly delivered by the parties hereto; provided, that no such amendment, modification or waiver shall be effective to reduce the principal and/or interest payable on this Note, or to alter or amend the consent
        mechanism provided for under this Section 5, without the consent of the Payee.

    
      
        

        

        

      

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    6. Notices.  All notices, requests, demands,
        directions, declarations and other communications provided for herein shall be in writing and shall be deemed effectively given (a) upon personal delivery to the party to be notified, (b) (i) three days after notice shall be deposited with the
        United States Post Office, by registered or certified mail, postage prepaid, or (ii) one day after notice shall be sent if sent for next day delivery via a U.S. nationally recognized overnight courier service, in either case addressed to the party
        to be notified, which shall be (A) if to the Maker, at the address specified for such party on the signature page hereof, and (B) if to the Payee at the address designated for payments hereunder from time to time, which unless otherwise indicated
        shall be deemed to be the address set forth on Schedule A to the Purchase Agreement, or (c) upon transmission, when sent by electronic mail to the electronic mail address of the party to be notified, which shall be (A) if to the Maker, at the
        electronic mail address specified for such party on the signature page hereof, and (B) if to the Payee, at the electronic mail address of such Payee, which unless otherwise indicated shall be deemed to be the electronic mail address set forth on
        Schedule A to the Purchase Agreement. Any party may change its address or electronic mail address for notice purposes by giving advance notice hereunder to the other party in accordance with this Section 6.

    7. Governing Law; Consent to Jurisdiction, etc.
        This Note shall be construed and interpreted in accordance with the laws of the State of Nevada without regard to its provisions concerning choice of laws or choice of forum.  Each of the Maker and the Payee hereby irrevocably submit themselves to
        the non-exclusive jurisdiction of the state and federal courts sitting in the State of New Jersey and agree and consent that service of process may be made upon them in any legal proceedings relating hereto by any means allowed under state or
        federal law.

    8. Certain Waivers; Integration, etc.

    (a) The Maker waives presentment for payment, demand, notice of nonpayment, notice of protest, protest and notice of dishonor of
        this Note, and all other notices in connection with the delivery, acceptance, performance, default or enforcement of the payment of this Note.

    (b) This instrument, together with the Purchase Agreement, states the entire agreement of the parties concerning the subject
        matter hereof, and it is acknowledged that there are no customs, usages, representations, or assurances referring to the subject matter, and no inducements leading to the execution or delivery hereof, other than those expressed herein and in the
        Purchase Agreement.

    9. Loss; Theft.  Upon receipt by the Maker of
        evidence satisfactory to it of the loss, theft, destruction, or mutilation of this Note and (in the case of loss, theft or destruction) of an indemnity reasonably satisfactory to it, and upon surrender and cancellation of this Note, if mutilated,
        the Maker will deliver a new Note of like tenor in lieu of this Note.  Any Note delivered in accordance with the provisions of this Section 9 shall be dated as of
        the date of this Note.

    
      
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    10. Miscellaneous.  This Note shall bind and
        inure to the benefit of the Maker and the Payee and their respective heirs, executors, administrators, personal representatives, successors and permitted assigns, except that the Maker shall not have the right to assign any of the Maker’s rights
        hereunder or interests herein without the written consent of the Payee.  No persons other than the Maker and the Payee and the respective permitted assignees of the Payee are intended to be benefited hereby or shall have any rights hereunder, as
        third‐party beneficiaries or otherwise.  This Note may not be pledged, sold, hypothecated, assigned, sold, transferred or otherwise disposed, nor may the Payee grant any security or other interest in, or otherwise encumber this Note, without the
        prior written consent of the Maker.  The Maker acknowledges that this Note and the obligations of the Maker hereunder have constituted, and were intended by the Maker to constitute, a material inducement to the Payee to enter into this Note and
        make the loan contemplated hereby, knowing that the Payee will rely upon the terms of this Note.  The Maker intends to be legally bound hereby.  Any provision of this Note that is prohibited or unenforceable in any jurisdiction shall, as to such
        jurisdiction, be ineffective to the extent of such prohibition or unenforceability without affecting the validity or enforceability of the remainder of this Note or the validity or enforceability of such provision in any other jurisdiction.  The
        term “Payee” shall apply equally to the initial Payee specified above and to any holder to which this Note is assigned properly.  The term “including” shall have the inclusive meaning frequently identified with the phrase “including without
        limitation.”

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    [SIGNATURE PAGE TO SUBORDINATED NOTE]

    IN WITNESS WHEREOF, the Maker has executed this Note, or has caused the same to be
      executed in its name, intending to be legally bound as of the day and year first written above.

    	 	
            MAKER:

             

            RCM TECHNOLOGIES, INC.

             

             

             

            By:           /s/ Kevin D. Miller

            Name:      Kevin
                D. Miller

            Title:        Chief
                Financial Officer

             

            Address:    2500
                McClellan Avenue, Suite 350

            Pennsauken, NJ 08109

             

            Attention: Chief Financial Officer

             

            E-mail Address: kevin.miller@rcmt.comEXECUTION VERSION

      

     

      

     

      

    SUBORDINATION AGREEMENT

    

    

    THIS SUBORDINATION AGREEMENT (this “Agreement”) dated as of June 2, 2020, is made by and
      among IRS PARTNERS NO.  19, L.P., a Delaware limited partnership (the “Subordinated Creditor”) for itself and its affiliates, RCM TECHNOLOGIES, INC., a Nevada corporation (“RCM”), the subsidiaries of RCM listed on the signature pages hereto (collectively, with RCM, the “Borrowers”), and CITIZENS BANK, N.A., as administrative agent (together with its
      successors and assigns in such capacity, the “Senior Agent”) for itself and the other Lenders (as that term is defined in the Credit Agreement defined below).

    

    

    Background

    

    

    A. The Senior Agent, the Borrowers, and the Lenders entered into that certain Third Amended and Restated Loan Agreement dated as of August 9, 2018 (as amended through the date hereof
        and as the same may be further amended, restated, modified, supplemented and/or replaced from time to time, the “Credit Agreement”), pursuant to which the Lenders agreed to extend credit to the
        Borrowers on the terms and conditions described therein.

    

    

    B. Subject to the terms of that certain Amendment No. 2 to Third Amended and Restated Loan Agreement dated as of the date hereof (the “Amendment”),

        the Borrowers have requested that the Senior Agent and the Lenders amend the Credit Agreement to allow, among other things, RCM to (i) purchase 1,858,139 shares of its common stock pursuant to the terms and provisions of that certain Stock Purchase
        Agreement dated as of the date hereof to which RCM is a party (as the same may be amended, restated, modified, supplemented and/or replaced from time to time, the “SPA”), and (ii) incur, in favor of
        the Subordinated Creditor, certain indebtedness in connection therewith in the principal amount of $2,229,766.80, which indebtedness is to be evidenced by that certain 9% Subordinated Note, dated as of the date hereof, executed by RCM in favor of
        the Subordinated Creditor (as the same may be amended, restated, modified, supplemented and/or replaced from time to time, the “Subordinated Note” and, together with the SPA, the “Subordinated Debt Documents”), and one of the conditions to the effectiveness of the Amendment is that the Subordinated Creditor, the Borrowers and the Senior Agent enter into this Agreement pursuant to
        which the Subordinated Creditor and the Borrowers agree that certain obligations of the Borrowers owed to the Subordinated Creditor shall be subordinate to the obligations of the Borrowers owed to the Senior Agent and/or the Lenders (collectively,
        the “Senior Creditors”).

    

    

    NOW, THEREFORE, the parties hereto, intending to be legally bound hereby, and in consideration of the mutual covenants herein contained
      and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, agree as follows:

    

    

    1. DEFINITIONS.  Capitalized terms used but not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement.  The following terms, as used
        herein, shall have the following meanings:

        

      

    
      
        

      
        

        

      

    

    “Enforce Remedies” or “Enforcing Remedies” shall mean any action to enforce or attempt to enforce any right or remedy available to the Subordinated Creditor or the Senior Agent, as applicable, with respect to the Subordinated Obligations or the Senior Obligations
        under the Subordinated Debt Documents or the Loan Documents, as applicable, or under any applicable law.  Without expanding any rights available to any Person (including, for the avoidance of doubt, not implying that any rights as a secured
        creditor would be applicable to a holder of the Subordinated Obligations) such rights and remedies may include, among other things, any action to (a) repossess, replevy, attach, garnish, levy upon, collect the proceeds of, foreclose or realize any
        lien upon, sell, liquidate or otherwise dispose of or otherwise restrict or interfere with the use of, any collateral, whether by judicial action, under power of sale, by self-help repossession, by recoupment, by notification to account obligors or
        by the exercise of any rights or remedies of a “secured party” under Article 9 of the UCC, or otherwise, (b) commence or pursue any judicial, arbitral or other proceeding or legal action of any kind seeking injunctive or other equitable relief to
        prohibit, limit or impair the commencement or pursuit by the Senior Agent of any of its rights or remedies with respect to the Collateral under or in connection with the Loan Documents or otherwise available under applicable law with respect to
        collateral; (c) take from or for the account of any Borrower or subsidiary or affiliate thereof by set-off or in any other manner, the whole or any part of any moneys which may now or hereafter be owing by such Borrower, (d) sue for payment of, or
        to initiate or participate with others in any suit, action or proceeding against a Borrower or any subsidiary or affiliate thereof to (i) enforce payment or to collect the whole or any part of the applicable debt or (ii) commence judicial
        enforcement of any of the rights and remedies under the Subordinated Debt Documents, the Loan Documents or applicable law, (e) accelerate debt, (f) require a Borrower or any subsidiary or affiliate thereof to sell assets or engage in a plan to sell
        assets as a condition to an amendment or waiver, or (g) join with any other creditor in the commencement of any Insolvency Proceeding (as defined below) or take any action under the provisions of any state or federal law, including, without
        limitation, the Uniform Commercial Code, or under any contract or agreement, to enforce, foreclose upon, take possession of or sell any property or assets of a Borrower or any subsidiary or affiliate thereof.

    

    

    “Senior Obligations” shall mean all obligations, liabilities and indebtedness of any nature
      of each Borrower from time to time owed to the Senior Agent or any other Senior Creditor or any affiliate thereof under the Loan Documents or any supplements thereto (including any credit, if any, extended in an Insolvency Proceeding by any Senior
      Creditor), including, without limitation, the principal amount of all debts, claims and indebtedness, obligations under hedging agreements or in connection with banking, cash management and treasury services, if any, accrued and unpaid interest and
      all fees, costs and expenses, whether primary, secondary, direct, contingent, fixed or otherwise, heretofore, now and from time to time hereafter owing, due or payable, whether before or after the institution of Insolvency Proceeding, including any
      amendments, modifications, increases, supplements, renewals or extensions thereof (and expressly including any interest accruing thereon after the commencement of an Insolvency Proceeding whether or not such interest is an allowed claim) and
      expressly including the Secured Obligations.

    
      
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    “Subordinated Obligations” shall mean all obligations now existing or hereafter arising,
      contingent or absolute, matured or unmatured, of RCM or any other Borrower to the Subordinated Creditor under, arising out of or in connection with the Subordinated Debt Documents or any agreement entered into in connection therewith or related
      thereto, whether arising before, during or after the initial term or any renewal term of the Subordinated Debt Documents or before or after the commencement of any Insolvency Proceeding (and including, without limitation, any interest, fees, costs,
      expenses and other amounts, which would accrue and become due but for the commencement of such case, whether or not such amounts are allowed or allowable in whole or in part in such Insolvency Proceeding), whether direct or indirect, absolute or
      contingent, joint or several, due or not due, primary or secondary, liquidated or unliquidated, secured or unsecured.

    

    

    “Termination Date” shall mean the date that is 91 days after the date that the Senior
      Obligations (other than unasserted contingent indemnification and unasserted expense reimbursement obligations, in each case, not yet due and payable) have been paid in full in cash and all commitments to extend additional credit thereunder shall
      have terminated.

    

    

    2. REPRESENTATIONS AND WARRANTIES.  The Subordinated Creditor hereby represents and warrants to the Senior Agent as follows:

    2.1 Existence.  It is a limited partnership duly formed and validly existing in good standing under the laws of the jurisdiction of its formation.

    2.2 Authority.  The execution, delivery and performance of this Agreement (a) have been duly authorized by all necessary limited partnership action on behalf of the
        Subordinated Creditor, and (b) do not violate any provision of the organizational documents of the Subordinated Creditor.

    2.3 No Conflict.  The execution, delivery and performance of this Agreement do not violate any law, rule or regulation applicable to the Subordinated Creditor, any judicial,
        governmental or regulatory order binding upon the Subordinated Creditor and do not violate, result in the breach of, constitute a default or require any consent under any contract, agreement, indenture or instrument to which the Subordinated
        Creditor is a party or by which it or its property may be bound other than those consents that have been obtained and are in full force and effect.

    2.4 Enforceability.  This Agreement has been duly and validly executed and delivered by the Subordinated Creditor and constitutes the legal, valid and binding obligation of the
        Subordinated Creditor, enforceable against it in accordance with its terms, subject as to enforceability (a) under applicable insolvency law in an Insolvency Proceeding of the Subordinated Creditor and (b) to the application of general principles
        of equity (regardless of whether considered in a proceeding in equity or at law).

    2.5 Approvals.  No governmental or other approval is required in connection with the execution and delivery by, and the performance of the obligations of, the Subordinated
        Creditor under this Agreement.

    
      
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    2.6 Subordinated Obligations.  The Subordinated Obligations are unsecured and create no encumbrances on any assets of RCM or any other Borrower.

    3. SUBORDINATION PROVISIONS.

    3.1 Subordination.  The Subordinated Creditor hereby agrees that the Subordinated Obligations are and shall be subordinate and subject in right of payment to (a) the prior
        termination of all commitments of the Senior Creditors to advance any funds to the Borrowers under the terms of the Loan Documents and (b) the prior indefeasible payment in full in cash of all of the Senior Obligations (other than unasserted
        contingent indemnification and unasserted expense reimbursement obligations, in each case, not yet due and payable), whether or not the Senior Obligations have been voided, disallowed or subordinated pursuant to Sections 510, 547 or 548 of the
        Bankruptcy Code or any applicable state or federal fraudulent conveyance, preference or similar laws.  Without limiting the foregoing, the Subordinated Creditor also hereby agrees that, except as otherwise expressly provided in Section 3.2 of this
        Agreement, (i) it will not ask, demand, sue for, take or receive from RCM or any other Borrower, by set-off or in any other manner, payment of the whole or any part of the Subordinated Obligations, and (ii) without limiting the generality of clause
        (i) of this Section 3.1, it will not take any action to collect, demand payment of or accelerate all or any portion of the Subordinated Obligations (other than the filing of appropriate proofs of claim or any other similar action necessary
        to preserve its claim against a Borrower) or Enforce Remedies against the Borrower that it may have in respect of the Subordinated Obligations.

    3.2 Permitted Payments and Accruals.  Nothing in this Agreement shall limit the right of the Subordinated Creditor to:

    (a) accrue any amounts owing in respect of the Subordinated Obligations at any time; or

    (b) so long as no Event of Default is then outstanding, receive from RCM or any other Borrower regularly scheduled payments of interest pursuant to the terms of the Subordinated Debt
        Documents.

    3.3 Blockage in Connection with Senior Obligations Default.  The Subordinated Creditor and the Borrowers hereby agree that, if an Event of Default is then outstanding, no
        Borrower shall make and the Subordinated Creditor shall not accept, prior to the Termination Date, any payments on the Subordinated Obligations (including without limitation regularly scheduled payments of interest), whether or not the Senior
        Obligations have been voided, disallowed or subordinated pursuant to Sections 510, 547 or 548 of the Bankruptcy Code or any applicable state or federal fraudulent conveyance, preference or similar laws.

    3.4 Distributions, Etc.  In furtherance of, and not in limitation of, the subordination provided for herein, the Subordinated Creditor further agrees as follows:

    
      
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    (a) In the event of any distribution, division or application, partial or complete, voluntary or involuntary, by operation of law or otherwise, of all or any part of the assets of a
        Borrower or the proceeds thereof, to creditors of a Borrower, or upon any repayment of indebtedness of a Borrower, by reason of (1) the liquidation, dissolution or other winding up, partial or complete, of such Borrower, such Borrower’s assets, or
        such Borrower’s business, or (2) any receivership, insolvency proceeding, assignment for the benefit of creditors or other proceeding under any Debtor Relief Laws (each, an “Insolvency Proceeding”),
        then and in any such event:

    (i) the Subordinated Creditor will receive no payments until the Senior Obligations have been indefeasibly paid in full in cash;

    (ii) any payment or distribution of any kind or character, whether in cash, securities or other property which, but for this Agreement, would be payable or deliverable upon or with
        respect to any or all of the Subordinated Obligations, shall instead be paid or delivered directly to the Senior Agent for application to the Senior Obligations, whether then due or not due, until the Senior Obligations (other than unasserted
        contingent indemnification and unasserted expense reimbursement obligations, in each case, not yet due and payable) shall have been indefeasibly paid in full in cash; and

    (iii) the Subordinated Creditor hereby irrevocably authorizes and empowers the Senior Agent to demand, sue for, collect and receive every such payment or distribution and give
        acquittance therefor, and to file and/or vote claims and take such other action in any Insolvency Proceeding, in the Senior Agent’s (or any Lender’s) name or in the name of the Subordinated Creditor, or otherwise, as the Senior Agent may deem
        necessary or advisable for the enforcement of this Agreement (including, without limitation, the filing of any proof of claim in respect of the Subordinated Obligations and voting such claim in any Insolvency Proceeding of a Borrower).  In
        furtherance of the foregoing, the Subordinated Creditor agrees duly and promptly (in each case at the sole cost and expense of the Borrowers) (A) to take such action as may be reasonably requested by the Senior Agent to assist in the collection of
        the Subordinated Obligations for the account of the Senior Agent (and the Lenders), (B) to file appropriate proofs of claim in respect of the Subordinated Obligations, and (C) to execute and deliver to the Senior Agent on demand such powers of
        attorney, proofs of claim, assignments of claim or other instruments as may be reasonably requested by the Senior Agent to enable the Senior Agent to enforce any and all claims upon or with respect to the Subordinated Obligations, and to collect
        and receive any and all payments or distributions which may be payable or deliverable at any time upon or with respect to the Subordinated Obligations.

    3.5 Turnover.  If any payment, distribution of any assets or security or proceeds of any assets or security are received by the Subordinated Creditor upon or in respect of the
        Subordinated Obligations in contravention of the provisions hereof (including, without limitation, Sections 3.1 and 3.4(a)), the Subordinated Creditor will forthwith deliver the same to the Senior Agent in the form received (except
        for the endorsement or assignment of the Subordinated Creditor where necessary), for application to the Senior Obligations, whether then due or not due, and, until so delivered, the same shall be held in trust by the Subordinated Creditor for the
        benefit of the Senior Agent and the Lenders.  In the event of the failure of the Subordinated Creditor to make any such endorsement or assignment, the Senior Agent, or any of its officers or employees, are hereby irrevocably authorized to make the
        same.

    
      
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    3.6 Continuing Subordination, Etc.  The subordination effected by this Agreement is a continuing subordination, and shall remain in full force and effect until the Termination
        Date.  Without limiting the generality of the foregoing, the obligations of the Subordinated Creditor shall not be released, discharged or in any way affected by any circumstance or condition (whether or not the Subordinated Creditor shall have any
        notice or knowledge thereof) including, without limitation, any amendment or modification of or supplement to the Credit Agreement or any other Loan Document (including, without limitation, increasing the amount or extending the maturity of the
        Senior Obligations); any waiver, consent, extension, indulgence or other action or inaction under or in respect of any such agreements or instruments, or any exercise or failure to exercise of any right, remedy, power or privilege under or in
        respect of any such agreements or instruments, or any exercise or failure to exercise of any right, remedy, power or privilege under or in respect of any such agreements or instruments; any invalidity or unenforceability, in whole or in part, of
        any term hereof or of the Credit Agreement or any other Loan Document; any failure on the part of a Borrower or any other Person for any reason to perform or comply with any term of the Credit Agreement or any other Loan Document; any furnishing or
        acceptance of any additional security or guaranty; any release of the Subordinated Creditor or any other Person or any release of any or all security or any or all guarantees for the Senior Obligations, whether any such release is granted in
        connection with a Insolvency Proceeding or otherwise; any Insolvency Proceeding with respect to the Subordinated Creditor or any other Person or their respective properties or creditors; the application of payments received by the Senior Agent or
        any Lender from any source that were lawfully used for some other purpose, which lawfully could have been applied to the payment, in full or in part, of the Senior Obligations; or any other occurrence whatsoever, whether similar or dissimilar to
        the foregoing.  Without limiting the generality of the foregoing, at any time that the Credit Agreement is amended to increase the amount of the Secured Obligations or any supplement including any credit extended in an Insolvency Proceeding, the
        amount of the Senior Obligations shall be accordingly increased.

    3.7 Waiver of Notice.  The Subordinated Creditor hereby unconditionally waives notice of the incurring of the Senior Obligations or any part thereof and reliance by the Senior
        Agent or any Lender upon the subordination of the Subordinated Obligations to the Senior Obligations and any other similar notice provided by law or contract.

    3.8 Subrogation.  The Subordinated Creditor hereby waives any and all rights of subrogation, reimbursement, or indemnity whatsoever in respect of the Subordinated Obligations
        arising out of remedies exercised by the Senior Agent hereunder until after the Termination Date.

    3.9 Certain Covenants of Subordinated Creditor.

    (a) The Subordinated Creditor agrees that (i) promptly upon the written request of the Senior Agent, the Subordinated Creditor shall take such other action as may be reasonably
        requested by the Senior Agent to protect the rights of the Senior Agent and the other Senior Creditors under this Agreement or effectuate the subordination provided herein (at the sole cost and expense of the Borrowers), (ii) the Subordinated
        Obligations shall not at any time be secured by any lien or security interest on property of any Borrower or affiliate thereof nor shall they be guaranteed by any Borrower or any affiliate of any Borrower, and (iii) none of the Subordinated
        Obligations shall be sold, pledged, encumbered, assigned or otherwise transferred to any Person or shall be compromised or forgiven; provided, however, that the Subordinated Creditor may assign the Subordinated Obligations if (a)
        the Senior Agent provides written consent, such consent not to be unreasonably withheld, conditioned or delayed, and (b) such assignee or assignees agree to be bound by the terms of this Agreement.

    
      
        -6-

      

      
        

      
        

        

      

    

    (b) The Subordinated Creditor agrees not to initiate, prosecute or participate in any claim, action or other proceeding challenging the enforceability, amount, validity, perfection or
        priority of any portion of the Senior Obligations or any liens and security interests securing any portion of the Senior Obligations either in the context of an Insolvency Proceeding or otherwise.

    (c) The Subordinated Creditor agrees that it will not object to or oppose any cash collateral usage or debtor-in-possession financing or any sale or other disposition of any property
        securing all of any part of the Senior Obligations free and clear of the Subordinated Obligations under Section 363 of the Bankruptcy Code or any other law applicable in an Insolvency Proceeding, if the Senior Agent has consented to such sale or
        disposition.

    (d) The Subordinated Creditor agrees that the Senior Obligations shall continue to be treated as Senior Obligations and the provisions of this Agreement shall continue to govern the
        relative rights and priorities of the Senior Creditors and the Subordinated Creditor even if all or part of the Senior Obligations or the Liens or security interests securing the Senior Obligations are subordinated, set aside, avoided, invalidated,
        or disallowed in connection with any such Insolvency Proceeding, and this Agreement shall be reinstated if at any time any payment of any of the Senior Obligations is rescinded or must otherwise be returned by any holder of Senior Obligations or
        any representative of such holder.

    (e) The Subordinated Creditor agrees to execute, verify, deliver, and file any proofs of claim in respect of the Subordinated Obligations reasonably requested by the Senior Agent in
        connection with any Insolvency Proceeding and hereby irrevocably authorizes the Senior Agent to file proofs of claim on behalf of the Subordinated Creditor upon the failure of the Subordinated Creditor to do so.  For the avoidance of doubt, the
        Senior Agent shall have no affirmative obligation to file any such proof of claim on behalf of the Subordinated Creditor.  The Subordinated Creditor agrees not to support any plan of reorganization in any Insolvency Proceeding that does not provide
        for the prior payment in full in cash of the Senior Obligations (other than unasserted contingent indemnification and unasserted expense reimbursement obligations, in each case, not yet due and payable) and will not oppose a plan supported by Senior Creditors or take other actions inconsistent with this Agreement.  The Senior Agent shall be allowed to prosecute the claims of the Subordinated Creditor on behalf of the Subordinated Creditor in any Insolvency Proceeding.

    (f) The Subordinated Creditor shall cause the Subordinated Note, at all times, to bear a prominent legend stating that the Subordinated Note
          is subject to the terms of this Agreement and may not be paid or transferred in violation of this Agreement.

    3.10  Amendments to Subordinated Debt Documents.  The Subordinated Creditor
        agrees that, without the prior written consent of the Senior Agent (which consent may be withheld by the Senior Agent in its sole discretion), it will not enter into any amendments to the Subordinated Debt Documents.  Without limiting the foregoing, the Subordinated Debt Documents shall have no negative pledge, no financial covenants and no covenants which are more stringent than those set forth in the Loan Documents.  The Subordinated
          Creditor and RCM agree to enter into such amendments to the Subordinated Debt Documents as may be necessary to incorporate the terms of this Section 3.10 but the failure to do so shall not impair the effectiveness of this Section 3.10, the terms of which shall be deemed incorporated into the Subordinated Debt Documents.

    
      
        -7-

      

      
        

      
        

        

      

    

    3.11 Standstill on Enforcement of Remedies.  The Subordinated Creditor agrees that at any time prior to the Termination Date, if there is an “event of default” under the Subordinated Debt
          Documents, the Subordinated Creditor will refrain from Enforcing Remedies until the Termination Date has occurred.

    3.12 No Cross-Default.  The Subordinated Creditor agrees that the Subordinated Debt Documents and any other document executed in connection with the Subordinated Obligations
        shall not contain a cross-default or cross-acceleration to Defaults or Events of Default under the Credit Agreement.

    3.13 Reliance By Senior Creditors.  The Subordinated Creditor acknowledges that the Senior Creditors, in determining to acquire and retain the Senior Obligations, have relied
        upon the subordination of the Subordinated Obligations to the Senior Obligations as provided herein.

    4. TERMINATION OF AGREEMENT.  On the Termination Date, this Agreement and all other rights and obligations granted hereby or arising hereunder shall terminate.  If, for any
        reason, any or all of the Senior Creditors are required to return any funds they received in respect of the Senior Obligations, this Agreement and all obligations hereunder shall be reinstated.

    5. PAYMENT OF COSTS AND EXPENSES.

    5.1 Payment of Costs and Expenses.  Without limiting any other cost reimbursement provisions in the Loan Documents, upon demand, RCM shall pay to the Senior Agent the amount of
        any and all reasonable expenses incurred by the Senior Agent hereunder or in connection herewith, including, without limitation those that may be incurred in connection with (a) the administration of this Agreement, (b) the exercise or enforcement
        of any of the rights of the Senior Agent hereunder or (c) the failure of the Subordinated Creditor to perform or observe any of the provisions hereof.

    5.2 Senior Obligations.  Any amounts payable pursuant to this Section 5 shall be Senior Obligations.

    6. MISCELLANEOUS.

    
      
        -8-

      

      
        

      
        

        

      

    

    6.1 Counterparts; Integration; Effectiveness.  This Agreement, the Loan Documents and any separate letter agreements with respect to
        fees payable to the Senior Agent constitute the entire agreement among the parties relating to the subject matter hereof and supersede any and all previous agreements and understandings, oral or written, relating to the subject matter hereof.  This
        Agreement shall become effective when it shall have been executed by the Senior Agent, the Subordinated Creditor and the Borrowers and when the Senior Agent shall have received counterparts hereof that, when taken together, bear the signature of
        each of the parties hereto, and thereafter shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  This Agreement may be executed in one or more counterparts, each of which shall be deemed
        an original, but all of which together shall constitute one and the same instrument.  Delivery of an executed signature page counterpart hereof by telecopy, emailed .pdf or any other electronic means that reproduces an image of the actual executed
        signature page shall be effective as delivery of a manually executed counterpart hereof.  The words “execution,” “signed,” “signature,” “delivery,” and words of like import in or relating to any document to be signed in connection with this
        Agreement and the transactions contemplated hereby shall be deemed to include electronic signatures, the electronic association of signatures and records on electronic platforms, deliveries or the keeping of records in electronic form, each of
        which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery thereof or the use of a paper-based recordkeeping system, as the case may be, to the extent and as provided for in any
        applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, any other similar state laws based on the Uniform Electronic Transactions Act or the Uniform
        Commercial Code, each as amended, and the parties hereto hereby waive any objection to the contrary, provided that (a) nothing herein shall require the Senior Agent to accept electronic signature counterparts in any form or format
        and (b) the Senior Agent reserves the right to require, at any time and at its sole discretion, the delivery of manually executed counterpart signature pages to this Agreement and the parties hereto agree to promptly deliver such manually executed
        counterpart signature pages.

        6.2 Specific Performance.  The Subordinated Creditor hereby authorizes the Senior Agent to demand specific performance of this Agreement at any time when the Subordinated Creditor shall have failed to comply with any
        provision hereof, and the Subordinated Creditor hereby irrevocably waives any defense based on the adequacy of a remedy at law which might be asserted as a bar to the remedy of specific performance hereof in any action brought therefor.

   

      

  
    6.3 Successors and Assigns.  Except as otherwise provided in the Credit Agreement, the Senior Agent may assign or transfer this Agreement and any or all rights or obligations
        hereunder without the consent of the Subordinated Creditor.  The Subordinated Creditor shall not assign or transfer this Agreement or any rights or obligations hereunder without the prior written consent of the Senior Agent or as expressly provided
        in this Agreement.  Notwithstanding the foregoing, if there should be any assignment of any rights or obligations by operation of law or in contravention of the terms of this Agreement or otherwise, then all covenants, agreements, representations
        and warranties made herein or pursuant hereto by or on behalf of the Subordinated Creditor shall bind the successors and assigns of the Subordinated Creditor, together with the preexisting Subordinated Creditor, whether or not such new or
        additional Persons execute a joinder hereto or assumption hereof.  The rights and privileges of the Senior Agent under this Agreement shall inure to the benefit of its successors and assigns.  All promises, covenants and agreements of the
        Subordinated Creditor contained in this Agreement shall be binding upon personal representatives, heirs, successors and assigns of such Person.

    
      
        -9-

      

      
        

      
        

        

      

    

    6.4 Amendments and Waivers.  The terms of this Agreement may be waived, altered or amended only by an instrument in writing duly executed by the Subordinated Creditor and the
        Senior Agent.

    6.5 Notices.  All notices, requests, demands, directions and other communications provided under this Agreement shall be in writing (which includes electronic mail (“e-mail”)),
        and shall be deemed to have been duly delivered and received if delivered (i) personally at the time delivered in person, (ii) by facsimile transmission to the facsimile number specified below at the time of written confirmation of receipt, (iii)
        if sent by e-mail to the e-mail address specified below between the hours of 8:30 AM and 4:30 PM Eastern Time on a Business Day, on such Business Day (and if not sent between 8:30 AM and 4:30 PM Eastern Time, then on the subsequent Business Day to
        the date such e-mail is sent), unless such sender received a “bounce-back” or similar message upon transmission, (iv) by overnight delivery to the address specified below with a reputable national overnight delivery service on the Business Day
        following the date the notice is given to the overnight service, or (v) by mail or by certified mail to the address specified below, return receipt requested and postage prepaid, two Business Days after the date such notice is deposited with the
        United States Postal Service.  If notice is given to a party, it shall be given at the address, facsimile number or e-mail address for such party set forth below.  It shall be the responsibility of the parties to notify the other parties in writing
        of any name, e-mail address, mailing address or facsimile number changes.  With respect to notice given under clause (ii) or (iii) above, the party giving notice may also deliver notice by another method described above, which subsequent delivery
        shall not affect the deemed timing of delivery and receipt of such notice.

    If to the Subordinated Creditor, then to:

    

    

    IRS Partners No.  19, L.P.

    c/o M20, Inc., its General Partner

    515 South Figueroa, Suite 650

    Los Angeles, California 90071

    Attn: Michael F. O’Connell, President

    Email:____________________

    Phone:____________________

    

    

    

    

    If to a Borrower, then to:

    

    

    RCM Technologies, Inc.

    2500 McClellan Avenue, Suite 350

    Pennsauken, New Jersey 08109

    Attn:  Kevin D. Miller, Chief Financial Officer

    Email: kevin.miller@rcmt.com

    Phone: (856) 356-4569

    

    

    
      
        -10-

      

      
        

      
        

        

      

    

    

    

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

    

    

    White & Williams, LLP

    1800 One Liberty Place

    Philadelphia, Pennsylvania  19103

    Attention: Jennifer Santangelo, Esquire

    Email: santangeloj@whiteandwilliams.com

    Phone: (215) 864-7199

    

    

    

    

    If to the Senior Agent, then to:

    

    

    Citizens Bank, N.A.

    One Logan Square

    130 N. 18th Street, Suite 1310

    Philadelphia, PA 19103

    Attention: Lisa S. Williams, Senior Vice President

    Email: lisa.williams@citizensbank.com

    Phone: (267) 671-1203

    

    

    

    

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

    

    

    Archer & Greiner, P.C.

    One Centennial Square

    33 East Euclid Avenue

    Haddonfield, NJ 08033

    Attention: Deborah Hays, Esquire

    E-mail: dhays@archerlaw.com

    Phone: 856-354-3089

    

    

    

    

    6.6 Descriptive Headings.  The descriptive headings of the several sections of this Agreement are inserted for convenience only and shall not affect the meaning or construction
        of any of the provisions of this Agreement.

    6.7 Severability.  Every provision of this Agreement is intended to be severable.  If any term or provision of this Agreement shall be invalid, illegal or unenforceable for any
        reason, the validity, legality and enforceability of the remaining provisions shall not be affected or impaired thereby.  Any invalidity, illegality or unenforceability of any term or provision of this Agreement in any jurisdiction shall not affect
        the validity, legality or enforceability of any such term or provision in any other jurisdiction.

    6.8 Governing Law.  This Agreement and the rights and obligations of the parties hereunder shall be construed and interpreted in
        accordance with the laws of the Commonwealth of Pennsylvania (excluding the laws applicable to conflicts or choice of law).

    
      
        -11-

      

      
        

      
        

        

      

    

    6.9 Submission to Jurisdiction.  Each of the parties hereto irrevocably and unconditionally submits, for itself and its property, to
        the exclusive jurisdiction of the federal and state courts of the Commonwealth of Pennsylvania located in Philadelphia County and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or any
        other Loan Document, or for recognition or enforcement of any judgment, and each of the parties hereto irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such
        Pennsylvania State court or, to the fullest extent permitted by applicable law, in such Federal court.  Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other
        jurisdictions by suit on the judgment or in any other manner provided by law.  Nothing in this Agreement shall affect any right that the Senior Agent may otherwise have to bring any action or proceeding relating to this Agreement against a Borrower
        or Subordinated Creditor or any of their respective properties in the courts of any jurisdiction.

    6.10 Waiver of Objection to Venue.  Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent permitted by applicable law, any objection that it
        may now or hereafter have to the laying of venue of any action or proceeding arising out of or relating to this Agreement in any court referred to in the preceding Section 6.9.  Each of the parties hereto hereby irrevocably waives, to the
        fullest extent permitted by applicable law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

    6.11 Service of Process.  Each of the parties hereto irrevocably consents to service of process in the manner provided for notices in Section 6.5.  Nothing in this
        Agreement will affect the right of any party to this Agreement to serve process in any other manner permitted by law.

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

    

    

    [Signature Pages Follow]

    
      
        -12-

      

      
        

      
        

        

        

        

      

    

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

     
    

    

     

    
    
      	
              IRS PARTNERS NO.  19, L.P., as Subordinated Creditor

            
	 
	
              BY: M20, INC., its General Partner

            
	 
	 
	
              By: /s/ Michael F. O’Connell

            
	
              Name:  Michael F. O’Connell

            
	
              Title:  President

            
	 
	 
	
              CITIZENS BANK, N.A., in its capacity as Senior Agent

            
	 
	
              By: /s/ Lisa S. Williams

              

            
	
              Name: Lisa S. Williams

            
	
              Title: SVP

              

            
	 
	 
	
              RCM TECHNOLOGIES, INC,, as a Borrower

            
	 
	
              By: /s/ Kevin D. Miller

            
	
              Name:  Kevin D. Miller

            
	
              Title:  CFO

            
	 
	 
	
              RCM TECHNOLOGIES (USA), INC., as a Borrower

            
	 
	
              By: /s/ Kevin D. Miller

            
	
              Name:  Kevin D. Miller

            
	
              Title:  CFO

            
	 
	 
	
              RCMT DELAWARE, INC., as a Borrower

            
	 
	
              By: /s/ Kevin D. Miller

            
	
              Name:  Kevin D. Miller

            
	
              Title:  CFO

            

    

    

    

    
      
        

        

        

        

      

      
        

      
        

        

        

        

      

    

    

    

    

      
        	
                RCM TECHNOLOGIES CANADA CORP., as a Borrower

              
	 
	
                By: /s/ Kevin D. Miller

              
	
                Name:  Kevin D. Miller

              
	
                Title:  CFO

              
	 
	 
	
                RCMT EUROPE HOLDINGS, INC., as a
                    Borrower

              
	 
	
                By: /s/ Kevin D. Miller

              
	
                Name:  Kevin D. Miller

              
	
                Title:  CFO

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