Document:

EX-10.2

 Exhibit 10.2 
  

Opening Transaction 
  

			
	  To:		 Qualcomm Incorporated
 5775 Morehouse Drive

San Diego, California 92121-1714

		
	  A/C:		
		
	  From:		 Morgan Stanley & Co. LLC
 1585 Broadway, 5th
Floor
 New York, NY 10036

		
	  Re:		Accelerated Stock Buyback
		
	  Ref. No:		As provided in the Supplemental Confirmation
		
	  Date:		May 20, 2015

  
  

This master confirmation (this “Master Confirmation”), dated as of May 20, 2015, is intended to set
forth certain terms and provisions of certain Transactions (each, a “Transaction”) entered into from time to time between Morgan Stanley & Co. LLC (“Dealer”) and Qualcomm Incorporated
(“Counterparty”). This Master Confirmation, taken alone, is neither a commitment by either party to enter into any Transaction nor evidence of a Transaction. The additional terms of any particular Transaction shall be set forth in a
Supplemental Confirmation in the form of Schedule A hereto (a “Supplemental Confirmation”), which shall reference this Master Confirmation and supplement, form a part of, and be subject to this Master Confirmation. This Master
Confirmation and each Supplemental Confirmation together shall constitute a “Confirmation” as referred to in the Agreement specified below. 

The definitions and provisions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions”), as published by the International Swaps and Derivatives Association, Inc., are incorporated into this Master Confirmation. This Master Confirmation and each Supplemental Confirmation evidence a complete binding agreement
between Counterparty and Dealer as to the subject matter and terms of each Transaction to which this Master Confirmation and such Supplemental Confirmation relate and shall supersede all prior or contemporaneous written or oral communications with
respect thereto. 
 This Master Confirmation and each Supplemental Confirmation supplement, form a part of, and are subject
to an agreement in the form of the ISDA 2002 Master Agreement (the “Agreement”) as if Dealer and Counterparty had executed the Agreement on the date of this Master Confirmation (but without any Schedule except for (i) the
election of New York law (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law) as the governing law and US Dollars (“USD”) as the Termination Currency,
(ii) the election that subparagraph (ii) of Section 2(c) will not apply to the Transactions, (iii) the election that the “Cross Default” provisions of Section 5(a)(vi) of the Agreement shall apply with respect to
Counterparty and Dealer, with a “Threshold Amount” of 3% of shareholders’ equity applicable to Counterparty and a “Threshold Amount” of 3% of the shareholders’ equity of Morgan Stanley applicable to Dealer
(provided that, as to both Counterparty and Dealer (a) the phrase “, or becoming capable at such time of being declared,” shall be deleted from clause (1) of such Section 5(a)(vi) of the Agreement,
(b) “Specified Indebtedness” shall have the meaning specified in Section 14 of the Agreement, except that such term shall not include obligations in respect of deposits received in the ordinary course of Dealer’s banking
business and (c) the following sentence shall be added to the end thereof: “Notwithstanding the foregoing, an Event of Default shall not occur under either (1) or (2) above if (a) the event or condition referred to in
(1) or the failure to pay referred to in (2) is caused by an error or omission of an administrative or operational nature, (b) funds were available to such party to enable it to make the relevant payment when due, and (c) such
payment is made within three Local Business Days after notice of such failure is given by such party.”), (iv) for purposes of Section 3(f) of the Agreement, Dealer makes the following representation: it is a

 
U.S. person for U.S. federal income tax purposes, and it is a limited liability company incorporated in the State of Delaware, (v) for purposes of Section 3(f) of the Agreement,
Counterparty makes the following representation: it is a U.S. person for U.S. federal income tax purposes, it is a corporation for U.S. federal income tax purposes organized under the laws of the State of Delaware, and its taxpayer identification
number is 95-3685934 and (vi) for the purposes of Section 4(a)(i) and (ii) of the Agreement, each party agrees to deliver a complete and accurate United States Internal Revenue Service Form W-9 to the other party upon execution of
this Agreement, promptly upon reasonable demand by the other party, and promptly upon learning that any such form previously provided has become obsolete or incorrect). 

The Transactions shall be the sole Transactions under the Agreement. If there exists any ISDA Master Agreement between Dealer
and Counterparty or any confirmation or other agreement between Dealer and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between Dealer and Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which Dealer and Counterparty are parties, the Transactions shall not be considered Transactions under, or otherwise governed by, such existing or deemed ISDA Master Agreement, no
obligation with respect to a Transaction shall give rise, directly or indirectly, to any “Obligation” (as defined therein) for purposes of any Credit Support Annex forming a part of any such existing or deemed ISDA Master Agreement, and
the occurrence of any Event of Default or Termination Event under the Agreement with respect to either party or any Transaction shall not, by itself, give rise to any right or obligation under any such other agreement or deemed agreement.
Notwithstanding anything to the contrary in any other agreement between the parties or their Affiliates, the Transactions shall not be “Specified Transactions” (or similarly treated) under any other agreement between the parties or their
Affiliates. 
 All provisions contained or incorporated by reference in the Agreement shall govern this Master Confirmation
and each Supplemental Confirmation except as expressly modified herein or in the related Supplemental Confirmation. 
 If,
in relation to any Transaction to which this Master Confirmation and a Supplemental Confirmation relate, there is any inconsistency between the Agreement, this Master Confirmation, any Supplemental Confirmation and the Equity Definitions, the
following will prevail for purposes of such Transaction in the order of precedence indicated: (i) such Supplemental Confirmation; (ii) this Master Confirmation; (iii) the Equity Definitions; and (iv) the Agreement. 

1.           Each Transaction constitutes a Share Forward Transaction for the purposes
of the Equity Definitions. Set forth below are the terms and conditions that, together with the terms and conditions set forth in the Supplemental Confirmation relating to any Transaction, shall govern such Transaction. 

General Terms: 
  

			
	 Trade Date:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	 Buyer:
		 Counterparty

		
	 Seller:
		 Dealer

		
	 Shares:
		 Common stock, par value USD 0.0001 per share, of Counterparty (Ticker: QCOM)

		
	 Exchange:
		 NASDAQ Global Select Market

		
	 Related Exchange(s):
		 All Exchanges

		
	 Prepayment\Variable Obligation:
		 Applicable

  
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	 Prepayment Amount:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	 Prepayment Date:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Valuation:		
		
	 VWAP Price:
		 For any Exchange Business Day, the volume-weighted average price per Share for Rule 10b-18 eligible transactions in the Shares during the time period
corresponding to the regular trading session (including any extensions thereof) of the Exchange on such Exchange Business Day (without regard to pre-open or after-hours trading outside of such regular trading session for such Exchange Business Day),
as published by Bloomberg at 4:15 p.m. New York time (or 15 minutes following the end of any extension of the regular trading session) on such Exchange Business Day, on Bloomberg page “QCOM US <Equity> AQR_SEC” (or any successor
thereto), or if such price is not so reported on such Exchange Business Day for any reason or is, in the Calculation Agent’s good faith, commercially reasonable judgment, manifestly erroneous, such VWAP Price shall be such volume-weighted
average price as determined by the Calculation Agent in good faith and in a commercially reasonable manner. For purposes of calculating the VWAP Price for such Exchange Business Day, the Calculation Agent will include only those trades that are
reported during the period of time during which Counterparty could purchase its own shares under Rule 10b-18(b)(2) and are effected pursuant to the conditions of Rule 10b-18(b)(3), each under the Securities Exchange Act of 1934, as amended (the
“Exchange Act”) (such trades, “Rule 10b-18 eligible transactions”).

		
	 Forward Price:
		 The average of the VWAP Prices for the Calculation Dates in the Calculation Period, subject to “Valuation Disruption” below.

		
	 Forward Price Adjustment Amount:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	 Calculation Period:
		 For each Transaction, the period from and including the Calculation Period Start Date to and including the Termination Date.

		
	 Calculation Period Start Date:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	 Termination Date:
		 For each Transaction, the Scheduled Termination Date for such Transaction; provided that Dealer shall have the right to designate any Calculation Date on
or after the First Acceleration Date to be the Termination Date for such Transaction (the “Accelerated Termination Date”) by delivering notice to Counterparty of any such designation prior to 11:59 p.m. New York City time on the
Calculation Date immediately following the designated Accelerated Termination Date.

		
	 Calculation Dates:
		 For each Transaction, any date that is (i) both an Exchange Business Day and is set forth as a Calculation Date in the related Supplemental Confirmation and
(ii) every other Scheduled Trading Day following the last Calculation Date set forth in such Supplemental Confirmation, subject to the limitations set forth in “Valuation Disruption”
below.

  
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	 Scheduled Termination Date:
		 For each Transaction, as set forth in the related Supplemental Confirmation, subject to postponement as provided in “Valuation Disruption”
below.

		
	 First Acceleration Date:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	 Valuation Disruption:
		 The definition of “Market Disruption Event” in Section 6.3(a) of the Equity Definitions is hereby amended by deleting the words “at any time
during the one-hour period that ends at the relevant Valuation Time, Latest Exercise Time, Knock-in Valuation Time or Knock-out Valuation Time, as the case may be” and inserting the words “at any time on any Scheduled Trading Day during
the Calculation Period or Settlement Valuation Period” after the word “material,” in the third line thereof.

		
			 Section 6.3(d) of the Equity Definitions is hereby amended by deleting the remainder of the provision following the term “Scheduled Closing Time” in
the fourth line thereof.

		
			 Notwithstanding anything to the contrary in the Equity Definitions, to the extent that a Disrupted Day occurs (i) on a Scheduled Trading Day that is a
Calculation Date for such Transaction, the Calculation Agent may, in its good faith and commercially reasonable judgment, postpone the Scheduled Termination Date to the next Calculation Date, or (ii) in the Settlement Valuation Period, the
Calculation Agent may extend the Settlement Valuation Period by up to one Calculation Date for each Disrupted Day. If any such Disrupted Day is a Disrupted Day because of a Market Disruption Event (or a deemed Market Disruption Event as provided
herein), the Calculation Agent shall determine whether (i) such Disrupted Day is a Disrupted Day in full, in which case the VWAP Price for such Disrupted Day shall not be included for purposes of determining the Forward Price or the Settlement
Price, as the case may be, or (ii) such Disrupted Day is a Disrupted Day only in part, in which case the VWAP Price for such Disrupted Day shall be determined by the Calculation Agent based on Rule 10b-18 eligible transactions in the Shares on such
Disrupted Day taking into account the nature and duration of the relevant Market Disruption Event, and the weighting of the VWAP Price for the relevant Calculation Dates during the Calculation Period or the Settlement Valuation Period, as the case
may be, shall be adjusted in a commercially reasonable manner by the Calculation Agent for purposes of determining the Forward Price or the Settlement Price, as the case may be, with such adjustments based on, among other factors, the duration of
any Market Disruption Event and the volume, historical trading patterns and price of the Shares. Any Exchange Business Day on which, as of the date hereof, the Exchange is scheduled to close prior to its normal close of trading shall be deemed not
to be an Exchange Business Day; if a closure of the Exchange prior to its normal close of trading on any Exchange Business Day is scheduled following the date hereof, then such Exchange Business Day shall be deemed to be a Disrupted Day in
full.

		
			 If a Disrupted Day occurs on a Scheduled Trading Day scheduled to be a Calculation Date during the Calculation Period or the Settlement Valuation Period, as the
case may be, and each of the five immediately following scheduled Calculation Dates is a Disrupted Day, then the Calculation Agent may, in its good faith and commercially reasonable

  
 4 

			
		
			 judgment (i) deem such fifth scheduled Calculation Date to be an Exchange Business Day that is not a Disrupted Day and (ii) determine the VWAP Price for such
fifth scheduled Calculation Date using its good faith estimate of the value of the Shares on such fifth scheduled Calculation Date based on the volume, historical trading patterns and price of the Shares and such other factors as it deems
appropriate.

		
	Settlement Terms:		
		
	 Settlement Procedures:
		 For each Transaction, if the Number of Shares to be Delivered for such Transaction is positive, Physical Settlement shall be applicable to such Transaction;
provided that the “Representation and Agreement” contained in Section 9.11 of the Equity Definitions shall be modified by excluding any representations therein relating to restrictions, obligations, limitations or requirements under
applicable securities laws arising as a result of the fact that Buyer is the Issuer of the Shares. If the Number of Shares to be Delivered is negative, then the Counterparty Settlement Provisions in Annex A shall apply.

		
	 Number of Shares to be Delivered:
		 A number of Shares equal to (x)(a) the Prepayment Amount divided by (b) the Divisor Amount minus (y) the number of Initial Shares.

		
	 Divisor Amount:
		 The greater of (i) the Forward Price minus the Forward Price Adjustment Amount and (ii) USD 1.00.

		
	 Excess Dividend Amount:
		 For the avoidance of doubt, all references to the Excess Dividend Amount shall be deleted from Section 9.2(a)(iii) of the Equity Definitions.

		
	 Settlement Date:
		 For each Transaction, if the Number of Shares to be Delivered is positive, the date that is one Settlement Cycle immediately following the Termination Date for
such Transaction.

		
	 Settlement Currency:
		 USD

		
	 Initial Share Delivery:
		 For each Transaction, Dealer shall deliver a number of Shares equal to the Initial Shares for such Transaction to Counterparty on the Initial Share Delivery
Date for such Transaction in accordance with Section 9.4 of the Equity Definitions, with such Initial Share Delivery Date deemed to be a “Settlement Date” for purposes of such Section 9.4.

		
	 Initial Share Delivery Date:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	 Initial Shares:
		 For each Transaction, as set forth in the related Supplemental Confirmation.

		
	Share Adjustments:		
		
	 Potential Adjustment Event:
		 Notwithstanding anything to the contrary in Section 11.2(e) of the Equity Definitions, (i) an Extraordinary Dividend shall not constitute a Potential Adjustment
Event and (ii) none of the Transactions pursuant to this Master Confirmation, the Other Specified Repurchase Agreement nor any Permitted OMR Transaction (each as defined below) shall constitute a Potential Adjustment
Event.

  
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			 It shall constitute an additional Potential Adjustment Event if the Scheduled Termination Date for any Transaction is postponed pursuant to “Valuation
Disruption” above, in which case the Calculation Agent may, in its good faith, commercially reasonable judgment, adjust any relevant terms of any such Transaction as necessary to account for the economic effect on such Transaction of such
postponement; provided that the Calculation Agent shall not change the designation of any Calculation Date.

		
	 Extraordinary Dividend:
		 For any calendar quarter, any dividend or distribution on the Shares with an ex-dividend date occurring during such calendar quarter (other than any dividend or
distribution of the type described in Section 11.2(e)(i) or Section 11.2(e)(ii)(A) of the Equity Definitions) (a “Dividend”) the amount or value of which (as determined by the Calculation Agent), when aggregated with the amount or
value (as determined by the Calculation Agent) of any and all previous Dividends with ex-dividend dates occurring in the same calendar quarter, exceeds the Ordinary Dividend Amount.

		
	 Ordinary Dividend Amount:
		 For each Transaction, as set forth in the related Supplemental Confirmation

		
	 Method of Adjustment:
		 Calculation Agent Adjustment

		
	 Early Ordinary Dividend Payment:
		 For each Transaction, if an ex-dividend date for any Dividend that is not an Extraordinary Dividend occurs during any calendar quarter occurring (in whole or in
part) during the Relevant Dividend Period (as defined below) for such Transaction and is prior to the Scheduled Ex-Dividend Date for such Transaction for such calendar quarter, the Calculation Agent shall make such adjustment to the exercise,
settlement, payment or any other terms of the relevant Transaction as the Calculation Agent determines appropriate to account for the economic effect on such Transaction of such event.

		
	 Scheduled Ex-Dividend Dates:
		 For each Transaction for each calendar quarter, as set forth in the related Supplemental Confirmation.

		
	 Relevant Dividend Period:
		 The period from and including the Calculation Period Start Date to and including the Relevant Dividend Period End Date.

		
	 Relevant Dividend Period End Date:
		 If the Number of Shares to be Delivered is negative, the last day of the Settlement Valuation Period; otherwise, the Termination Date.

		
	Extraordinary Events:		
		
	 Consequences of Merger Events:
		
		
	 (a)    Share-for-Share:
		 Modified Calculation Agent Adjustment

		
	 (b)    Share-for-Other:
		 Cancellation and Payment

		
	 (c)    Share-for-Combined:
		 Component Adjustment

		
	 Tender Offer:
		 Applicable; provided that (a) Section 12.1(d) of the Equity Definitions shall be amended by replacing “10%” in the third line thereof with
“20%”, (b) Section 12.1(l) of the Equity Definitions shall be amended

  
 6 

			
			 (i) by deleting the parenthetical in the fifth line thereof, (ii) by replacing “that” in the fifth line thereof with “whether or not such
announcement” and (iii) by adding immediately after the words “Tender Offer” in the fifth line thereof “(provided, however, that in the reasonable judgment of the Calculation Agent such announcement is reasonably likely to result
in the Tender Offer), and any publicly announced material change or amendment to such an announcement (including the announcement of an abandonment of such intention)” and (c) Sections 12.3(a) and 12.3(d) of the Equity Definitions shall each be
amended by replacing each occurrence of the words “Tender Offer Date” by “Announcement Date.”

		
	 Consequences of Tender Offers:
		
		
	 (a)    Share-for-Share:
		 Modified Calculation Agent Adjustment or Cancellation and Payment, at the election of Dealer

		
	 (b)    Share-for-Other:
		 Modified Calculation Agent Adjustment or Cancellation and Payment, at the election of Dealer

		
	 (c)    Share-for-Combined:
		 Modified Calculation Agent Adjustment or Cancellation and Payment, at the election of Dealer

		
	 Limitations as to Certain

Adjustments:
		  
 For the avoidance of doubt, any adjustments to the
terms of any Transaction and any determination of any amounts due upon termination of any Transaction hereunder (including, without limitation, as a result of a Merger Event, Tender Offer, Acquisition Transaction or Merger Transaction, or any
announcement with respect to any of the foregoing) shall be made without duplication in respect of any prior adjustment hereunder (including, without limitation, any prior adjustment pursuant to Sections 10 and 11 below).

		
	 Nationalization,

Insolvency or Delisting:
		  
 Cancellation and Payment; provided that in
addition to the provisions of Section 12.6(a)(iii) of the Equity Definitions, it shall also constitute a Delisting if the Exchange is located in the United States and the Shares are not immediately re-listed, re-traded or re-quoted on any of the New
York Stock Exchange, The NASDAQ Global Select Market or The NASDAQ Global Market (or their respective successors); if the Shares are immediately re-listed, re-traded or re-quoted on any such exchange or quotation system, such exchange or quotation
system shall be deemed to be the Exchange.

		
	 Additional Disruption Events:
		
		
	 (a)    Change in Law:
		 Applicable; provided that Section 12.9(a)(ii) of the Equity Definitions is hereby amended by (i) replacing the phrase “the interpretation” in
the third line thereof with the phrase “, or public announcement of, the formal or informal interpretation”, (ii) replacing the word “Shares” where it appears in clause (X) thereof with the words “Hedge Position” and
(iii) immediately following the word “Transaction” in clause (X) thereof, adding the phrase “in the manner contemplated by the Hedging Party on the Trade Date”; provided further that (i) any determination as to whether (A)
the adoption of or any change in any applicable law or regulation (including, for the avoidance of doubt and without

  
 7 

					
			 limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute) or (B) the promulgation
of or any change in the interpretation by any court, tribunal or regulatory authority with competent jurisdiction of any applicable law or regulation (including any action taken by a taxing authority), in each case, constitutes a “Change in
Law” shall be made without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or after the
Trade Date, and (ii) Section 12.9(a)(ii) of the Equity Definitions is hereby amended by replacing the parenthetical beginning after the word “regulation” in the second line thereof with the words “(including, for the avoidance of
doubt and without limitation, (x) any tax law or (y) adoption or promulgation of new regulations authorized or mandated by existing statute)”. Notwithstanding anything to the contrary in the Equity Definitions, a Change in Law described in
clause (Y) of Section 12.9(a)(ii) of the Equity Definitions shall not constitute a Change in Law and instead shall constitute an Increased Cost of Hedging as described in Section 12.9(a)(vi) of the Equity Definitions.

		
	 (b)      Failure to Deliver:
		 Applicable

		
	 (c)      Insolvency Filing:
		 Applicable

		
	 (d)      Hedging Disruption:
		 Applicable

		
	 (e)      Increased Cost of Hedging:
		 Applicable

		
	 (f)      Loss of Stock Borrow:
		 Applicable

 
			
		
	Maximum Stock Loan Rate:		 200 basis points per annum

					
			
	 (g)      Increased Cost of
				
	            Stock Borrow:
		 Applicable

 
			
		
	Initial Stock Loan Rate:		 25 basis points per annum

		
	Hedging Party:		 For all applicable events, Dealer

		
	Determining Party:		 For all applicable events, Dealer, acting in accordance with the requirements of Section 3 of this Master
Confirmation

					
		
	 Additional Termination Event:
		 The declaration by the Issuer of any Extraordinary Dividend, the ex-dividend date for which occurs or is reasonably expected to occur, as determined
by the Calculation Agent, during the Relevant Dividend Period, will constitute an Additional Termination Event, with Counterparty as the sole Affected Party and all Transactions hereunder as the Affected Transactions.

		
	 Non-Reliance/Agreements and Acknowledgements Regarding Hedging Activities/Additional Acknowledgements:
		 Applicable

  
 8 

					
		
	 Transfer:
		 Notwithstanding anything to the contrary in the Agreement, Dealer may, without the consent of Counterparty, assign, transfer and set over all
rights, title and interest, powers, privileges and remedies of Dealer under any Transaction, in whole or in part, to an affiliate of Dealer that is wholly-owned, directly or indirectly, by Morgan Stanley whose obligations are guaranteed by Morgan
Stanley pursuant to a guaranty in the form and substance consistent with industry norms for guarantees by financial institutions of derivative transactions entered into by their affiliates; provided that (i) the senior unsecured debt rating
by at least one of Moody’s Investors Services, Inc. or Standard & Poors Inc. (the “Credit Rating”) of such affiliate (or its guarantor under a guaranty meeting the requirements of this paragraph) is equal to or higher than the
Credit Rating of Dealer, (ii) such affiliate assumes, in a written agreement satisfactory to and for the benefit of Counterparty, the obligations of Dealer hereunder in respect thereof, (iii) no Event of Default, Potential Event of Default or
Termination Event with respect to which Dealer is the Defaulting Party or an Affected Party, as the case may be, exists or would result therefrom, (iv) no Additional Disruption Event or other event giving rise to a right or responsibility to
terminate or cancel the Transaction or to make an adjustment to the terms of the Transaction would result therefrom, (v) at the time of such assignment or transfer, Counterparty would not, as a result of such assignment or transfer, reasonably be
expected at any time either (A) to be required to pay (including a payment in kind) to Dealer or such Transferee an amount in respect of an Indemnifiable Tax greater than the amount Counterparty would have been required to pay to Dealer in the
absence of such transfer or (B) to receive a payment (including a payment in kind) from which an amount is required to be deducted or withheld for or on account of a Tax as to which no additional amount is required to be paid, (vi) Dealer shall have
caused the transferee to make such Payee Tax Representations and to provide such tax documentation as may be reasonably requested by Counterparty to permit Counterparty to determine that the transfer complies with the requirements of clause (v) in
this paragraph, (vii) Counterparty would not, at the time and as a result of such transfer or assignment, reasonably be expected to become subject to any registration, qualification, reporting or other requirement under applicable law or regulation
to which it would not otherwise have been subject absent such transfer or assignment and (viii) Dealer shall be responsible for reasonable fees and actual, documented out-of-pocket expenses, including reasonable fees and actual, documented
out-of-pocket expenses of external counsel, incurred by Counterparty in connection with any transfer or potential transfer by Dealer.

		
	 Dealer Payment Instructions:
		Citibank, NY
			ABA#:
			Morgan Stanley & Co.
			Account #:
			Qualcomm Inc. Account #
	 Counterparty’s Contact Details

for Purpose of Giving Notice:
		Qualcomm Incorporated
			5775 Morehouse Drive
			San Diego, California 92121-1714
			Attention: Akash Palkhiwala
			Telephone: (858) 651-4123
			Email:  akashp@qualcomm.com

  
 9 

			
			With a copy to:
		
			Attention: Greg Wolfinger
			Telephone: (858) 651-6370
			Email: gwolfinger@qualcomm.com
		
			And email notification to the following address:
			treasury.ecm@qualcomm.com
		
	 Dealer’s Contact Details for
		
	 Purpose of Giving Notice:
		Morgan Stanley & Co. LLC
			1585 Broadway, 5th Floor
			New York, NY 10036
			Attention: David Oakes
			Telephone: (212) 761-5319
			Facsimile: (212) 404-9480
			Email: David.Oakes@morganstanley.com
		
			With a copy to:
		
			Morgan Stanley & Co. LLC
			1221 Avenue of the Americas, 34th Floor
			New York, NY 10020
			Attention: Anthony Cicia
			Telephone: (212) 762-4828
			Facsimile: (212) 507-4338
			Email: Anthony.Cicia@morganstanley.com

 2.           Calculation
Agent.    Dealer, acting in accordance with the requirements of Section 3 of this Master Confirmation; provided that, following the occurrence of an Event of Default pursuant to Section 5(a)(vii) of the
Agreement with respect to which Dealer is a Defaulting Party, Counterparty shall have the right to designate a nationally recognized third-party dealer in over-the-counter corporate equity derivatives to act as the Calculation Agent with respect to
the Transactions under this Master Confirmation. 
 3.           Calculation Agent
and Determining Party.  Following any adjustment, determination or calculation by the Calculation Agent or the Determining Party hereunder upon a written request by Counterparty, the Calculation Agent or the Determining Party, as the
case may be, will promptly (but in any event no later than five (5) Exchange Business Days following receipt of such written request by the Calculation Agent or the Determining Party, as the case may be) provide to Counterparty by e-mail to the
e-mail address provided by Counterparty in such written request a report (in a commonly used file format for the storage and manipulation of financial data) displaying in reasonable detail the basis for such adjustment, determination or calculation,
as the case may be, it being understood that the Calculation Agent or the Determining Party, as the case may be, shall not be obligated to disclose any proprietary or confidential models or any other information that may be proprietary or
confidential, in each case, used by the Calculation Agent or the Determining Party, as the case may be, for such adjustment, determination or calculation. 

Whenever the Calculation Agent or the Determining Party is required to act, to make any determination, or to exercise judgment
or discretion in any way with respect to any Transaction hereunder, it will do so in good faith and in a commercially reasonable manner, and to the extent the Calculation Agent or the Determining Party makes any judgment, calculation, adjustment or
determination, or exercises its discretion to take into account the effect of an event on the Transaction, it shall do so based on the assumption that the Hedging Party maintains a commercially reasonable Hedge Position at the time of such event.
Notwithstanding anything to the contrary in the Equity Definitions, this Master Confirmation or any Supplemental Confirmation, the Calculation Agent and the Determining Party shall not change the dates identified as Calculation Dates in the relevant
Supplemental Confirmation for any Transaction. 

  
 10 

 4.            Additional Mutual
Representations, Warranties and Covenants of Each Party.     In addition to the representations, warranties and covenants in the Agreement, each party represents, warrants and covenants to the other party that: 

(a)          Eligible Contract Participant.    It
is an “eligible contract participant”, as defined in the U.S. Commodity Exchange Act (as amended), and is entering into each Transaction hereunder as principal (and not as agent or in any other capacity, fiduciary or otherwise) and not for
the benefit of any third party. 
 (b)          Accredited
Investor.  Each party acknowledges that the offer and sale of each Transaction to it is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of
Section 4(a)(2) thereof. Accordingly, each party represents and warrants to the other that (i) it has the financial ability to bear the economic risk of its investment in each Transaction and is able to bear a total loss of its investment,
(ii) it is an “accredited investor” as that term is defined under Regulation D under the Securities Act and (iii) the disposition of each Transaction is restricted under this Master Confirmation, the Securities Act and state
securities laws. 
 5.           Additional Representations, Warranties and
Covenants of Counterparty.  In addition to the representations, warranties and covenants in the Agreement, Counterparty represents, warrants and covenants to Dealer that: 

(a)          The purchase or writing of each Transaction and the
transactions contemplated hereby will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act. 

(b)          It is not entering into each Transaction (i) on the basis
of, and as of the Trade Date for such Transaction is not aware of, any material non-public information with respect to the Shares, (ii) in anticipation of, in connection with, or to facilitate, a distribution of its securities, a self tender
offer or a third-party tender offer, or (iii) to create actual or apparent trading activity in the Shares (or any security convertible into or exchangeable for the Shares) or to raise or depress or otherwise manipulate the price of the Shares
(or any security convertible into or exchangeable for the Shares). 

(c)          Each Transaction is being entered into pursuant to a publicly
disclosed Share buy-back program and its Board of Directors has approved the use of derivatives to effect the Share buy-back program. 

(d)          Without limiting the generality of Section 13.1 of the
Equity Definitions, Counterparty acknowledges that neither Dealer nor any of its affiliates is making any representations or warranties or taking any position or expressing any view with respect to the treatment of any Transaction under any
accounting standards including ASC Topic 260, Earnings Per Share, ASC Topic 815, Derivatives and Hedging, or ASC Topic 480, Distinguishing Liabilities from Equity and ASC 815-40, Derivatives and Hedging – Contracts in
Entity’s Own Equity. 
 (e)          As of the Trade Date for
each Transaction hereunder, Counterparty is in compliance in all material respects with its reporting obligations under the Exchange Act. 

(f)          Counterparty shall report each Transaction as required under
the Exchange Act and the rules and regulations thereunder. 

(g)          The Shares are not, and Counterparty will not cause the Shares
to be, subject to a “restricted period” (as defined in Regulation M promulgated under the Exchange Act) at any time during any Regulation M Period (as defined below) for any Transaction unless Counterparty has provided written notice to
Dealer of such restricted period not later than the Scheduled Trading Day immediately preceding the first day of such “restricted period”; Counterparty acknowledges that any such notice may cause a Disrupted Day to occur pursuant to
Section 7 

  
 11 

 
below; accordingly, Counterparty acknowledges that its delivery of such notice must comply with the standards set forth in Section 8 below; “Regulation M Period” means, for
any Transaction, (i) the Relevant Period (as defined below) and (ii) the Settlement Valuation Period, if any, for such Transaction. “Relevant Period” means, for any Transaction, the period commencing on the Trade Date for
such Transaction and ending on the earlier of (i) the Scheduled Termination Date and (ii) the last Additional Relevant Day (as specified in the related Supplemental Confirmation) for such Transaction, or such earlier day as elected by
Dealer and communicated to Counterparty on such day (or, if later, the First Acceleration Date without regard to any acceleration thereof pursuant to “Special Provisions for Acquisition Transaction Announcements” below). 

(h)         As of the Trade Date, the Prepayment Date, the Initial Share Delivery
Date and the Settlement Date for each Transaction, Counterparty is not “insolvent” (as such term is defined under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy
Code”)) and Counterparty would be able to purchase a number of Shares with a value equal to the Prepayment Amount in compliance with the laws of the jurisdiction of Counterparty’s incorporation. 

(i)          Counterparty is not and, after giving effect to each
Transaction, will not be, required to register as an “investment company” as such term is defined in the Investment Company Act of 1940, as amended. 

(j)          [omitted] 

(k)         Counterparty has not entered into and will not enter into agreements
similar to the Transactions described herein where the relevant calculation or valuation dates in any initial hedge period, calculation period, relevant period or settlement valuation period (each however defined) in such other transaction will
coincide at any time (including as a result of extensions in such initial hedge period, calculation period, relevant period or settlement valuation period as provided in the relevant agreements) with the Calculation Dates in any Relevant Period or,
if applicable, any Settlement Valuation Period under this Master Confirmation. In the event that any relevant calculation or valuation dates in any initial hedge period, relevant period, calculation period or settlement valuation period in any other
similar transaction coincides with any Calculation Dates in any Relevant Period or, if applicable, Settlement Valuation Period under this Master Confirmation as a result of any postponement of the Scheduled Termination Date or extension of the
Settlement Valuation Period pursuant to “Valuation Disruption” above, Counterparty shall promptly amend such transaction to avoid any such overlap. For the avoidance of doubt, nothing in this Section 5(k) shall prohibit or apply to
the Permitted Purchases (as defined below). 
 6.           Additional
Representations of Dealer.   In addition to the representations, warranties and covenants in this Agreement, Dealer represents, warrants and covenants to Counterparty that: 

(a)         Dealer shall use commercially reasonable efforts, during the
Calculation Period and any Settlement Valuation Period (as defined in Annex A) for any Transaction, to make all purchases of Shares in connection with such Transaction in a manner that would comply with the limitations set forth in clauses (b)(1),
(b)(2), (b)(3) and (b)(4) and (c) of Rule 10b-18, as if such rule were applicable to such purchases and taking into account any applicable Securities and Exchange Commission no-action letters as appropriate, and subject to any delays between
the execution and reporting of a trade of the Shares on the Exchange and other circumstances beyond Dealer’s control; provided that, during the Calculation Period, the foregoing agreement shall not apply to purchases made to dynamically
hedge for Dealer’s own account or the account of its affiliate(s) the optionality arising under a Transaction (including, for the avoidance of doubt, timing optionality); and provided further that, without limiting the generality of the
first sentence of this Section 6(a), Dealer shall not be responsible for any failure to comply with Rule 10b-18(b)(3) to the extent any transaction that was executed (or deemed to be executed) by or on behalf of Counterparty or an
“affiliated purchaser” (as defined under Rule 10b-18) pursuant to a separate agreement is not deemed to be an “independent bid” or an “independent transaction” for purposes of
Rule 10b-18(b)(3). 

(b)         In connection with each Transaction, Dealer has not, at any time
prior to execution of the Confirmation for such Transaction, discussed any offsetting transaction(s) in respect of such Transaction with any third party. 

(c)          Dealer has implemented policies and procedures, taking into
consideration the nature of its business, reasonably designed to ensure that individuals making investment decisions related to any Transaction do not have access to material nonpublic information regarding Counterparty or the Shares. 

  
 12 

 7.           Regulatory
Disruption.  In the event that Dealer concludes, in its good faith, reasonable judgment and based on the advice of counsel, that it is appropriate with respect to any legal, regulatory or self-regulatory requirements or related
policies and procedures similarly applicable to accelerated share repurchase transactions and consistently applied (whether or not such requirements, policies or procedures are imposed by law or have been voluntarily adopted by Dealer), for it to
refrain from or decrease any market activity on any Scheduled Trading Day or Days during the Calculation Period or, if applicable, the Settlement Valuation Period, Dealer may by written notice to Counterparty elect to deem that a Market Disruption
Event has occurred and will be continuing on such Scheduled Trading Day or Days. 

8.           10b5-1 Plan.  Counterparty represents, warrants and
covenants to Dealer that: 

(a)                    
      Counterparty is entering into this Master Confirmation and each Transaction hereunder in good faith and not as part of a plan or scheme to evade the prohibitions of Rule 10b-5 under the Exchange Act (“Rule
10b-5”) or any other antifraud or anti-manipulation provisions of the federal or applicable state securities laws and that it has not entered into or altered and will not enter into or alter any corresponding or hedging transaction or
position with respect to the Shares. For the avoidance of doubt, neither the entry into the Other Specified Repurchase Agreement nor the Permitted OMR Transactions shall fall within the ambit of the previous sentence. Counterparty acknowledges that
it is the intent of the parties that each Transaction entered into under this Master Confirmation comply with the requirements of paragraphs (c)(1)(i)(A) and (B) of Rule 10b5-1 under the Exchange Act
(“Rule 10b5-1”) and each Transaction entered into under this Master Confirmation shall be interpreted to comply with the requirements of Rule 10b5-1(c). “Other Specified
Repurchase Agreement” means, for any Transaction, any similar and substantially contemporaneous transaction entered into between Counterparty and another dealer, which other transaction shall have terms substantially identical to the terms
of such Transaction, except for calculation dates that do not coincide with any Calculation Dates hereunder. 

(b)                    
      During the Calculation Period and the Settlement Valuation Period, if any, for any Transaction and in connection with the delivery of any Alternative Delivery Units for any Transaction, Dealer (or its agent or
Affiliate) may effect transactions in Shares in connection with such Transaction. The timing of such transactions by Dealer, the price paid or received per Share pursuant to such transactions and the manner in which such transactions are made,
including, without limitation, whether such transactions are made on any securities exchange or privately, shall be within the sole judgment of Dealer. Counterparty acknowledges and agrees that all such transactions shall be made in Dealer’s
sole judgment and for Dealer’s own account. 

(c)                    
      Counterparty will not seek to control or influence Dealer’s decision to make any “purchases or sales” (within the meaning of Rule 10b5-1(c)(1)(i)(B)(3)) under any Transaction entered into under this
Master Confirmation, including, without limitation, Dealer’s decision to enter into any hedging transactions. Counterparty represents and warrants that it has consulted with its own advisors as to the legal aspects of its adoption and
implementation of this Master Confirmation and each Supplemental Confirmation under Rule 10b5-1. 

(d)                    
      Counterparty acknowledges and agrees that any amendment, modification, waiver or termination of this Master Confirmation or the relevant Supplemental Confirmation must be effected in accordance with the
requirements for the amendment or termination of a “plan” as defined in Rule 10b5-1(c). Without limiting the generality of the foregoing, any such amendment, modification, waiver or termination shall be made in good faith and not as part
of a plan or scheme to evade the prohibitions of Rule 10b-5, and no such amendment, modification or waiver shall be made at any time at which Counterparty or any officer or director of Counterparty is aware of any material non-public information
regarding Counterparty or the Shares. 
 9.           Counterparty
Purchases.  Counterparty (or any “affiliated purchaser” as defined in Rule 10b-18 under the Exchange Act (“Rule 10b-18”)) shall not, without the prior written consent of Dealer, directly or indirectly purchase

  
 13 

 
any Shares (including by means of a derivative instrument), listed contracts on the Shares or securities that are convertible into, or exchangeable or exercisable for Shares (including, without
limitation, any Rule 10b-18 purchases of blocks (as defined in Rule 10b-18)) on any Calculation Date during any Relevant Period or, if applicable, Settlement Valuation Period, except through Dealer or pursuant to the Permitted OMR Transactions or
any Other Specified Repurchase Agreement. 
 Notwithstanding the immediately preceding paragraph or anything herein to the contrary
(i) Counterparty may purchase Shares (x) on any Calculation Date pursuant to any Rule 10b5-1 or Rule 10b-18 repurchase plan entered into with Dealer or an Affiliate of Dealer (each, a “Dealer Permitted
OMR Transaction”), so long as, on any Calculation Date, purchases under all Dealer Permitted OMR Transactions do not in the aggregate exceed 5.0% of the ADTV (as such term is defined in Rule 10b-18(a)(1)) on such Calculation Date and
(y) on any Exchange Business Day other than a Calculation Date pursuant to any Rule 10b5-1 or Rule 10b-18 repurchase plan entered into with the counterparty to the Other Specified Repurchase Agreement (each,
a “Counterparty Permitted OMR Transaction” and, together with any Dealer Permitted OMR Transaction, a “Permitted OMR Transaction”), so long as, on such Exchange Business Day, purchases under all
Counterparty Permitted OMR Transactions do not in the aggregate exceed 5.0% of the ADTV (as such term is defined in Rule 10b-18(a)(1)) on such Exchange Business Day, (ii) an agent independent of Counterparty may purchase Shares on behalf
of an issuer plan sponsored by Counterparty or any affiliate in accordance with the requirements of Section 10b-18(a)(13)(ii) under the Exchange Act (with “issuer plan” and “agent independent of Counterparty” each being used
herein as defined in Rule 10b-18), (iii) Counterparty or any “affiliated purchaser” may purchase Shares in (x) unsolicited transactions or (y) privately negotiated (off-market) transactions, in each case, that are not and
are not reasonably likely to result in “Rule 10b-18 purchases” (as defined in Rule 10b-18), in each case, without Dealer’s consent, and (iv) Counterparty may repurchase Shares from holders of awards granted under
Counterparty’s equity incentive plans for the purpose of paying the tax withholding obligations arising from the vesting of, or paying the exercise price in connection with the exercise of, or reacquiring Shares as a result of the forfeiture
of, any such awards (collectively, (i) through (iv) referred to herein as the “Permitted Purchases”). 

10.           Special Provisions for Merger Transactions. Notwithstanding
anything to the contrary in the Equity Definitions: 

(a)          Counterparty agrees that it: 

(i)           will not during the period commencing on
the Trade Date for a Transaction through the last day of the Relevant Period or, if applicable, the Settlement Valuation Period for a Transaction make, or to the extent within Counterparty’s reasonable control, permit to be made, any public
announcement (as defined in Rule 165(f) under the Securities Act) of any Merger Transaction or potential Merger Transaction (a “Public Announcement”) unless such Public Announcement is made prior to the opening or after the close of the
regular trading session on the Exchange for the Shares; 

(ii)          shall promptly (but in any event prior to the
next opening of the regular trading session on the Exchange) notify Dealer following any such Public Announcement that such Public Announcement has been made; and 

(iii)         shall promptly (but in any event prior to the next
opening of the regular trading session on the Exchange) provide Dealer with written notice specifying (i) Counterparty’s average daily Rule 10b-18 Purchases (as defined in Rule 10b-18) during the three full calendar months immediately
preceding the date of such Public Announcement that were not effected through Dealer or its affiliates and (ii) the number of Shares purchased pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act for the three full calendar
months preceding the date of such Public Announcement. Such written notice shall be deemed to be a certification by Counterparty to Dealer that such information is true and correct. In addition, Counterparty shall promptly notify Dealer of the
earlier to occur of the completion of the relevant Merger Transaction and the completion of the vote by target shareholders. 

(b)            Counterparty acknowledges that a Public
Announcement or delivery of a notice to Dealer with respect thereto may cause the terms of any Transaction to be adjusted or such Transaction to be terminated; accordingly, Counterparty acknowledges that in making any Public Announcement, it must
comply with the standards set forth in Section 8 above. 

  
 14 

 (c)          Upon the
occurrence of any Public Announcement of any Merger Transaction or potential Merger Transaction (whether made by Counterparty or a third party), Calculation Agent, acting in good faith and in a commercially reasonable manner, may (i) make
commercially reasonable adjustments to the terms of any Transaction (other than changing the designation of any Calculation Date), including the Scheduled Termination Date or the Forward Price Adjustment Amount, and may suspend the Calculation
Period and/or any Settlement Valuation Period or (ii) if the Calculation Agent determines that no adjustment that it could make under the foregoing clause (i) will produce a commercially reasonable result, treat the occurrence of such
Public Announcement as an Extraordinary Event to which Cancellation and Payment in accordance with Section 12.7 of the Equity Definitions applies with the Cancellation Amount determined in accordance with Section 12.8 of the Equity
Definitions and taking into account the fact that the Calculation Period or Settlement Valuation Period, as the case may be, had fewer Scheduled Trading Days than originally anticipated. 

“Merger Transaction” means any merger, acquisition or similar transaction involving a recapitalization as
referred to in Rule 10b-18(a)(13)(iv) under the Exchange Act, after giving effect to the exclusions from such reference in clauses (A) and (B) of Rule 10b-18(a)(13)(iv). 

11.          Special Provisions for Acquisition Transaction
Announcements.     (a) If an Acquisition Transaction Announcement occurs on or prior to the Settlement Date for any Transaction, then the Calculation Agent, acting in good faith and in a commercially reasonable
manner, shall make such adjustments to the exercise, settlement, payment or any other terms of such Transaction as the Calculation Agent determines appropriate, at such time or at multiple times as the Calculation Agent determines appropriate, to
account for the economic effect on such Transaction of such Acquisition Transaction Announcement (including adjustments to account for changes in volatility, expected dividends, stock loan rate and liquidity relevant to the Shares or to such
Transaction); provided, however, that such adjustments, including adjustments to the Forward Price Adjustment Amount, shall in all respects be subject to the “Limitations as to Certain Adjustments” set forth under
Extraordinary Events in Section 1 of this Master Confirmation. If an Acquisition Transaction Announcement occurs after the Trade Date, but prior to the First Acceleration Date of any Transaction, the First Acceleration Date shall be the date of
such Acquisition Transaction Announcement. 

(b)          “Acquisition Transaction Announcement” means
(i) the announcement of an Acquisition Transaction by Counterparty, any of its subsidiaries or any other party that is expected to be a party to such Acquisition Transaction, (ii) an announcement that Counterparty or any of its
subsidiaries has entered into an agreement, a letter of intent or an understanding designed to result in an Acquisition Transaction by Counterparty, any of its subsidiaries or any other party that is expected to be a party to such Acquisition
Transaction, (iii) the announcement by Counterparty of the intention to solicit or enter into, or to explore strategic alternatives or other similar undertaking that include, an Acquisition Transaction, (iv) any other announcement that in
the reasonable judgment of the Calculation Agent is reasonably likely to result in an Acquisition Transaction or (v) any announcement of any material change or amendment to any previous Acquisition Transaction Announcement (including any
announcement of the abandonment of any such previously announced Acquisition Transaction, agreement, letter of intent, understanding or intention). For the avoidance of doubt, except as specifically stated otherwise, announcements as used in the
definition of Acquisition Transaction Announcement refer to any public announcement whether made by the Issuer or a third party. 

(c)          “Acquisition Transaction” means (i) any
Merger Event (for purposes of this definition the definition of Merger Event shall be read with the references therein to “100%” being replaced by “30%” and references to “50%” by “75%” and without reference
to the clause beginning immediately following the definition of Reverse Merger therein to the end of such definition), Tender Offer or Merger Transaction or any other transaction involving the merger of Counterparty with or into any third party,
(ii) the sale or transfer of all or substantially all of the assets of Counterparty, (iii) a recapitalization, reclassification, binding share exchange or other similar transaction with respect to Counterparty, (iv) any acquisition by
Counterparty or any of its subsidiaries where the aggregate consideration transferable by Counterparty or its subsidiaries exceeds 30% of the market capitalization of Counterparty (measured as of the date of announcement), (v) any lease,
exchange, transfer, 

  
 15 

 
disposition (including by way of spin-off or distribution) of assets (including any capital stock or other ownership interests in subsidiaries) or other similar event by Counterparty or any of
its subsidiaries where the aggregate consideration transferable or receivable by or to Counterparty or its subsidiaries exceeds 25% of the market capitalization of Counterparty (measured as of the date of announcement) and (vi) any transaction
in which Counterparty or its board of directors has a legal obligation to make a recommendation to its shareholders in respect of such transaction (whether pursuant to Rule 14e-2 under the Exchange Act or otherwise). 

12.         Acknowledgments.  (a) The parties hereto intend for: 

  (i)      each Transaction to be a “securities contract” as
defined in Section 741(7) of the Bankruptcy Code, a “swap agreement” as defined in Section 101(53B) of the Bankruptcy Code and a “forward contract” as defined in Section 101(25) of the Bankruptcy Code, and the
parties hereto to be entitled to the protections afforded by, among other Sections, Sections 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 555, 556, 560 and 561 of the Bankruptcy Code; 

 (ii)      the Agreement to be a “master netting agreement” as
defined in Section 101(38A) of the Bankruptcy Code; 
 (iii)      a
party’s right to liquidate, terminate or accelerate any Transaction, net out or offset termination values or payment amounts, and to exercise any other remedies upon the occurrence of any Event of Default or Termination Event under the
Agreement with respect to the other party or any Extraordinary Event that results in the termination or cancellation of any Transaction to constitute a “contractual right” (as defined in the Bankruptcy Code); and 

(iv)      all payments for, under or in connection with each Transaction, all
payments for the Shares (including, for the avoidance of doubt, payment of the Prepayment Amount) and the transfer of such Shares to constitute “settlement payments” and “transfers” (as defined in the Bankruptcy Code). 

(b)             Counterparty acknowledges that: 

  (i)      during the term of any Transaction, Dealer and its
affiliates may buy or sell Shares or other securities or buy or sell options or futures contracts or enter into swaps or other derivative securities in order to establish, adjust or unwind its hedge position with respect to such Transaction; 

 (ii)      Dealer and its affiliates may also be active in the market for
the Shares and derivatives linked to the Shares other than in connection with hedging activities in relation to any Transaction, including acting as agent or as principal and for its own account or on behalf of customers; 

(iii)      Dealer shall make its own determination as to whether, when or in
what manner any hedging or market activities in Counterparty’s securities shall be conducted and shall do so in a manner that it deems appropriate to hedge its price and market risk with respect to the Forward Price and the VWAP Price; 

(iv)      any market activities of Dealer and its affiliates with respect to the
Shares may affect the market price and volatility of the Shares, as well as the Forward Price and the VWAP Price, each in a manner that may be adverse to Counterparty; and 

 (v)      each Transaction is a derivatives transaction in which it has
granted Dealer an option; Dealer may purchase shares for its own account at an average price that may be greater than, or less than, the price paid by Counterparty under the terms of the related Transaction. 

(c)                Counterparty: 

(vi)       is an “institutional account” as defined in FINRA Rule
4512(c); 

  
 16 

 (vii)       is capable of
evaluating investment risks independently, both in general and with regard to all transactions and investment strategies involving a security or securities, and will exercise independent judgment in evaluating the recommendations of Dealer or its
associated persons; and 
 (viii)      will notify Dealer if any of the
statements contained in clause (i) or (ii) of this Section 10(c) ceases to be true. 

13.          Credit Support Documents.   The parties hereto
acknowledge that no Transaction hereunder is secured by any collateral that would otherwise secure the obligations of Counterparty herein or pursuant to the Agreement. 

14.          No Netting or Setoff.  Obligations under any Transaction shall
not be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against any other obligations of the parties, whether arising under the Agreement, this Master Confirmation or any Supplemental Confirmation, or under any
other agreement between the parties hereto, by operation of law or otherwise, and no other obligations of the parties shall be netted, recouped or set off (including pursuant to Section 6 of the Agreement) against obligations under any
Transaction, whether arising under the Agreement, this Master Confirmation or any Supplemental Confirmation, or under any other agreement between the parties hereto, by operation of law or otherwise, and each party hereby waives any such right of
setoff, netting or recoupment. 
 15.          Delivery of
Shares.    Notwithstanding anything to the contrary herein, Dealer may, by prior notice to Counterparty, satisfy its obligation to deliver any Shares or other securities on any date due (an “Original Delivery
Date”) by making separate deliveries of Shares or such securities, as the case may be, at more than one time on or prior to such Original Delivery Date, so long as the aggregate number of Shares and other securities so delivered on or prior
to such Original Delivery Date is equal to the number required to be delivered on such Original Delivery Date; provided that such separate deliveries shall have no effect on the payment obligations of Counterparty or the timing thereof. 

16.          Early Termination.   In the event that (a) an Early
Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is designated with respect to any Transaction (except as a result of a Merger Event in which the consideration or proceeds to be paid to holders of Shares
consists solely of cash), or (b) any Transaction is canceled or terminated upon the occurrence of an Extraordinary Event, if either party would owe to the other party any amount pursuant to Section 6(d)(ii) of the Agreement or any
Cancellation Amount pursuant to Article 12 of the Equity Definitions (any such amount, a “Payment Amount”), then, in lieu of any payment of such Payment Amount, Counterparty may, no later than the Early Termination Date or the date
on which such Transaction is terminated or canceled, elect to deliver or for Dealer to deliver, as the case may be, to the other party a number of Shares (or, in the case of a Merger Event, a number of units, each comprising the number or amount of
the securities or property that a hypothetical holder of one Share would receive in such Merger Event (each such unit, an “Alternative Delivery Unit” and, the securities or property comprising such unit, “Alternative
Delivery Property”)) with a value equal to the Payment Amount, as determined by the Calculation Agent in good faith and in a commercially reasonable manner over a commercially reasonable period of time (and the parties agree that, in making
such determination of value, the Calculation Agent may take into account a number of factors, including the market price of the Shares or Alternative Delivery Property on the date of early termination and, if such delivery is made by Dealer, the
prices at which Dealer purchases Shares or Alternative Delivery Property on any Calculation Date to fulfill its delivery obligations under this Section 16); provided that in determining the composition of any Alternative Delivery Unit,
if the relevant Merger Event involves a choice of consideration to be received by holders, such holder shall be deemed to have elected to receive the maximum possible amount of cash; and provided further that Counterparty may make such
election only if Counterparty represents and warrants to Dealer in writing on the date it notifies Dealer of such election that, as of such date, Counterparty is not aware of any material non-public information concerning the Shares and is making
such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws. If such delivery is made by Counterparty, paragraphs 2 through 7 of Annex A shall apply as if such delivery were a settlement of
the Transaction to which Net Share Settlement applied, the Cash Settlement Payment Date were the Early Termination Date or the date of early cancellation or termination, as the case may be, and the Forward Cash Settlement Amount were equal to zero
(0) minus the Payment 

  
 17 

 
Amount owed by Counterparty. For the avoidance of doubt, with respect to any Payment Amount, the provisions of Article 12 of the Equity Definitions, or the provisions of Section 6(d)(ii) of
the Agreement, as the case may be, shall apply unless Counterparty validly elects for the provisions of this Section 16 relating to the delivery of Shares or Alternative Delivery Units, as the case may be, to apply to any Payment Amount. 

17.          Calculations and Payment Date upon Early
Termination.    The parties acknowledge and agree that in calculating (a) the Close-Out Amount pursuant to Section 6 of the Agreement and (b) the amount due upon cancellation or termination of any Transaction
(whether in whole or in part) pursuant to Article 12 of the Equity Definitions as a result of an Extraordinary Event, Dealer may (but need not) determine such amount based on (i) a commercially reasonable (including without limitation with
regard to reasonable legal and regulatory guidelines and taking into account the existence and size, at such time, of the Other Specified Repurchase Agreement) risk bid or (ii) the price at which one or more market participants would offer to
sell to Dealer a block of shares of Common Stock equal in number to the Dealer’s hedge position in relation to the Transaction. Notwithstanding anything to the contrary herein or in Section 6(d)(ii) of the Agreement or in the Equity
Definitions, all amounts calculated as being due in respect of an Early Termination Date under Section 6(e) of the Agreement or other termination or cancellation of a Transaction hereunder will be payable on the Business Day immediately
following the Business Day on which notice of the amount payable is effective; provided that if Counterparty elects to receive Shares or Alternative Delivery Property in accordance with Section 16, such Shares or Alternative Delivery
Property shall be delivered as promptly thereafter as practicable. 

18.          Dealer Purchases.   During any Relevant Period or, if
applicable, Settlement Valuation Period, Dealer shall not purchase any Shares or enter into any transactions that, in whole or in part, have the effect of giving Dealer “long” economic exposure to the Shares in connection with any
Transaction on any Exchange Business Day that is not a Calculation Date; provided that (i) Dealer shall be permitted on any day to exercise listed options relating to Shares or deliver or receive Shares upon exercise of listed options relating
to Shares, in either case so long as such options were purchased or written in compliance with this sentence and (ii) during the period (if any) from and including the Trade Date to but excluding the Calculation Period Start Date, Dealer shall
be permitted to enter into delta-neutral volatility hedging transactions so long as such transactions (with such transactions entered into with the same counterparty viewed in the aggregate) do not result in an increase in Dealer’s net
“long” exposure to the Shares on any Exchange Business Day that is not a Calculation Date and do not involve open market purchases of Shares. 

19.          Automatic Termination
Provisions.     Notwithstanding anything to the contrary in Section 6 of the Agreement, if a Termination Price is specified in any Supplemental Confirmation, then an Additional Termination Event with Counterparty as
the sole Affected Party and the Transaction to which such Supplemental Confirmation relates as the sole Affected Transaction will automatically occur without any notice or action by Dealer or Counterparty if, on two consecutive Exchange Business
Days, the price of the Shares on the Exchange at any time during the regular trading session (including any extensions thereof) of the Exchange (without regard to pre-open or after hours trading outside of such regular trading session for each such
Exchange Business Day) falls below such Termination Price, and the Exchange Business Day immediately following such second consecutive Exchange Business Day will be the “Early Termination Date” for such Transaction. 

20.          Delivery of Cash.   For the avoidance of doubt, nothing
in this Master Confirmation shall be interpreted as requiring Counterparty to deliver cash in respect of the settlement of the Transactions contemplated by this Master Confirmation following payment by Counterparty of the relevant Prepayment Amount,
except in circumstances where the required cash settlement thereof is permitted for classification of the contract as equity by ASC 815-40, Derivatives and Hedging – Contracts in Entity’s Own Equity, as in effect on the relevant
Trade Date (including, without limitation, where Counterparty so elects to deliver cash or fails timely to elect to deliver Shares or Alternative Delivery Property in respect of the settlement of such Transactions). 

21.          Claim in Bankruptcy.   Dealer acknowledges and agrees
that this Confirmation is not intended to convey to it rights with respect to the Transactions that are senior to the claims of common stockholders in the event of Counterparty’s bankruptcy. 

  
 18 

 22.          Governing
Law.    The Agreement, this Master Confirmation, each Supplemental Confirmation and all matters arising in connection with the Agreement, this Master Confirmation and each Supplemental Confirmation shall be governed by, and
construed and enforced in accordance with, the laws of the State of New York (without reference to its choice of laws doctrine other than Title 14 of Article 5 of the New York General Obligations Law). 

23.          Illegality.    The parties agree that, for the
avoidance of doubt, for purposes of Section 5(b)(i) of the Agreement, “any applicable law” shall include the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, any rules and regulations promulgated thereunder and any
similar law or regulation, without regard to Section 739 of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 or any similar legal certainty provision in any legislation enacted, or rule or regulation promulgated, on or
after the Trade Date, and the consequences specified in the Agreement, including without limitation, the consequences specified in Section 6 of the Agreement, shall apply to any Illegality arising from any such act, rule or regulation. 

24.          Offices. 

(a)          The Office of Dealer for each Transaction is: Morgan
Stanley & Co. LLC, 1585 Broadway, 5th Floor, New York, NY 10036. 

(b)          The Office of Counterparty for each Transaction is: 5775
Morehouse Drive, San Diego, California 92121-1714. 
 25.          Waiver of Jury
Trial.  EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THE AGREEMENT, THIS MASTER
CONFIRMATION, ANY SUPPLEMENTAL CONFIRMATION, ANY TRADE NOTIFICATION, ANY TRANSACTION HEREUNDER AND/OR ALL MATTERS ARISING IN CONNECTION WITH THE AGREEMENT, THIS MASTER CONFIRMATION, ANY SUPPLEMENTAL CONFIRMATION, ANY TRADE NOTIFICATION AND/OR ANY
TRANSACTION HEREUNDER. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO
ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTIONS, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN. 

26.          Submission to Jurisdiction.  Section 13(b) of the
Agreement is deleted in its entirety and replaced by the following: 
 “Each party hereby irrevocably and
unconditionally submits for itself and its property in any suit, legal action or proceeding relating to this Agreement and/or any Transaction, or for recognition and enforcement of any judgment in respect thereof, (each, “Proceedings”) to
the exclusive jurisdiction of the Supreme Court of the State of New York, sitting in New York County, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof. Nothing in the Master
Confirmation, any Supplemental Confirmation or this Agreement precludes either party from bringing Proceedings in any other jurisdiction if (A) the courts of the State of New York or the United States of America for the Southern District of New
York lack jurisdiction over the parties or the subject matter of the Proceedings or declines to accept the Proceedings on the grounds of lacking such jurisdiction; (B) the Proceedings are commenced by a party for the purpose of enforcing
against the other party’s property, assets or estate any decision or judgment rendered by any court in which Proceedings may be brought as provided hereunder; (C) the Proceedings are commenced to appeal any such court’s decision or
judgment to any higher court with competent appellate jurisdiction over that court’s decisions or judgments if that higher court is located outside the State of New York or Borough of Manhattan, such as a

  
 19 

 
federal court of appeals or the U.S. Supreme Court; or (D) any suit, action or proceeding has been commenced in another jurisdiction by or against the other party or against its property,
assets or estate and, in order to exercise or protect its rights, interests or remedies under this Agreement, the Master Confirmation or any Supplemental Confirmation, the party (1) joins, files a claim, or takes any other action, in any such
suit, action or proceeding, or (2) otherwise commences any Proceeding in that other jurisdiction as the result of that other suit, action or proceeding having commenced in that other jurisdiction.” 

27.          Counterparts.  This Master Confirmation may be executed in any
number of counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Master Confirmation by signing and delivering one or more counterparts. 

  
 20 

 Please confirm that the foregoing correctly sets forth the terms of the agreement
between Dealer and Counterparty with respect to any particular Transaction to which this Master Confirmation relates, by executing one original copy of this Master Confirmation and returning such copy to Dealer and retaining the other original copy
bearing the signature of Dealer for your records. 
  

							
			Yours faithfully,
		
			MORGAN STANLEY & CO. LLC
			
			By:		   /s/ Sebastian Crapanzano

					 Name:  Sebastian Crapanzano
					 Title:  Managing Director

 Agreed and Accepted By: 
  

									
	QUALCOMM INCORPORATED				
				
	By:		   /s/ George S. Davis
				
			  Name:  George S. Davis				
			  Title:  Executive Vice President and Chief Financial Officer		

 [Signature Page to Master Confirmation] 

 SCHEDULE A 

SUPPLEMENTAL CONFIRMATION 
  

			
	   To:		 Qualcomm Incorporated
 5775 Morehouse Drive

San Diego, California 92121-1714

		
	   From:		 Morgan Stanley & Co. LLC
 1585 Broadway, 5th
Floor
 New York, NY 10036

		
	   Subject:		Accelerated Stock Buyback
		
	   Ref. No:		[Insert Reference No.]
		
	   Date:		[Insert Date]

  
  

The purpose of this Supplemental Confirmation is to confirm the terms and conditions of the Transaction entered into between
Morgan Stanley & Co. LLC (“Dealer”) and Qualcomm Incorporated (“Counterparty”) (together, the “Contracting Parties”) on the Trade Date specified below. This Supplemental Confirmation is a
binding contract between Dealer and Counterparty as of the relevant Trade Date for the Transaction referenced below. 

1.            This Supplemental Confirmation supplements, forms part of, and is
subject to the Master Confirmation dated as of May 20, 2015 (the “Master Confirmation”) between the Contracting Parties, as amended and supplemented from time to time. All provisions contained in the Master Confirmation govern
this Supplemental Confirmation except as expressly modified below. 

2.            The terms of the Transaction to which this Supplemental Confirmation
relates are as follows: 
  

			
	Trade Date:		[        ]
		
	Forward Price Adjustment Amount:            		USD [        ]
		
	Calculation Period Start Date:		[        ]
		
	Scheduled Termination Date:		[        ]
		
	First Acceleration Date:		[        ]
		
	Prepayment Amount:		USD [        ]
		
	Prepayment Date:		[        ]

  
 A-1 

			
	Initial Shares:		[            ] Shares; provided that if, in connection with the Transaction, Dealer is unable after using good faith and commercially reasonable efforts to borrow or
otherwise acquire a number of Shares equal to the Initial Shares for delivery to Counterparty on the Initial Share Delivery Date, the Initial Shares delivered on the Initial Share Delivery Date shall be reduced to such number of Shares that Dealer
is able to so borrow or otherwise acquire; and provided further that (i) if the Initial Shares are reduced as provided in the preceding proviso, then Dealer shall continue to use commercially reasonable efforts promptly to borrow or otherwise
acquire an additional number of Shares equal to the shortfall in the Initial Shares delivered on the Initial Share Delivery Date and shall deliver such additional Shares as promptly as practicable, and all Shares so delivered shall be considered
Initial Shares, (ii) if fewer than the original number of Initial Shares are so delivered in the aggregate on or prior to the tenth Exchange Business Day following the Initial Share Delivery Date, Counterparty may, by notice to Dealer on any
Exchange Business Day on or prior to the twentieth Exchange Business Day following the Initial Share Delivery Date, elect that (A) the Prepayment Amount be reduced by an amount equal to (x)(I) [ • ] minus (II) the aggregate number of
Initial Shares so delivered on or prior to such Exchange Business Day multiplied by (y) USD [$ • ] divided by (z) 0.8, in which case Dealer shall not be required to deliver additional Shares as Initial Shares pursuant to
clause (i) of this further proviso following such notice, and (B) Dealer shall return to Counterparty on such Exchange Business Day the amount by which the Prepayment Amount is so reduced and (iii) Counterparty may make the election set forth in
clause (ii) of this further proviso only if Counterparty represents and warrants to Dealer in writing on the date it notifies Dealer of such election that, as of such date, Counterparty is not aware of any material non-public information concerning
the Shares and is making such election in good faith and not as part of a plan or scheme to evade compliance with the federal securities laws.
			  
 For the avoidance of doubt, in using such commercially reasonable
efforts, Dealer shall act in good faith and in accordance with its then current policies, practices and procedures (including without limitation any policies, practices or procedures relating to counterparty risk, market risk, reputational risk,
credit, documentation, legal, regulatory capital, compliance and collateral), and shall not be required to enter into any securities lending transaction or transact with any potential securities lender if such transaction would not be in accordance
with such policies, practices and procedures.
  

	Initial Share Delivery Date:		[        ]
	  
 Ordinary Dividend Amount:
		  
 For any calendar quarter, USD
[        ] per Share

	  
 Scheduled Ex-Dividend Dates:
		  
 [        ]

	  
 Termination Price:
		  
 USD [        ] per
Share

	  
 Additional Relevant Days:
		  
 The [          ]
Exchange Business Days immediately following the Calculation Period.

  
 A-2 

 3.            Calculation Dates: 

 

											
	 1.  

 
		 		 2.  		 		 3.  		 
	 4.  

 
		 		 5.  		 		 6.  		 
	 7.  

 
		 		 8.  		 		 9.  		 
	 10.  

 
		 		 11.  		 		 12.  		 
	 13.  

 
		 		 14.  		 		 15.  		 
	 16.  

 
		 		 17.  		 		 18.  		 
	 19.  

 
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	 22.  

 
		 		 23.  		 		 24.  		 
	 25.  

 
		 		 26.  		 		 27.  		 
	 28.  

 
		 		 29.  		 		 30.  		 
	 31.  

 
		 		 32.  		 		 33.  		 
	 34.  

 
		 		 35.  		 		 36.  		 
	 37.  

 
		 		 38.  		 		 39.  		 
	 40.  

 
		 		 41.  		 		 42.  		 
	 43.  

 
		 		 44.  		 		 45.  		 
	 46.  

 
		 		 47.  		 		 48.  		 
	 49.  

 
		 		 50.  		 		 51.  		 
	 52.  

 
		 		 53.  		 		 54.  		 
	 55.  

 
		 		 56.  		 		 57.  		 
	 58.  

 
		 		 59.  		 		 60.  		 
	 61.  

 
		 		 62.  		 		 63.  		 
	 64.  

 
		 		 65.  		 		 66.  		 
	 67.  

 
		 		 68.  		 		 69.  		 
	 70.  

 
		 		 71.  		 		 72.  		 
	 73.  

 
		 		 74.  		 		 75.  		 
	 76.  

 
		 		 77.  		 		 78.  		 
	 79.  

 
		 		 80.  		 		 81.  		 
	 82.  

 
		 		 83.  		 		 84.  		 

  
 A-3 

 4.            Counterparty represents
and warrants to Dealer that neither it nor any “affiliated purchaser” (as defined in Rule 10b-18 under the Exchange Act) has made any purchases of blocks pursuant to the proviso in Rule 10b-18(b)(4) under the Exchange Act during either
(i) the four full calendar weeks immediately preceding the Trade Date or (ii) during the calendar week in which the Trade Date occurs. 

5.            This Supplemental Confirmation may be executed in any number of
counterparts, all of which shall constitute one and the same instrument, and any party hereto may execute this Supplemental Confirmation by signing and delivering one or more counterparts. 

  
 A-4 

 Please confirm that the foregoing correctly sets forth the terms of the agreement
between Dealer and Counterparty with respect to the Transaction to which this Supplemental Confirmation relates, by executing one original copy of this Supplemental Confirmation and returning such copy to Dealer and retaining the other original copy
bearing the signature of Dealer for your records. 
  

									
			Yours sincerely,		
			
			MORGAN STANLEY & CO. LLC		
				
			By:		  
		
					Authorized Signatory		

 Agreed and Accepted By: 
  

									
	QUALCOMM INCORPORATED		
				
	By:		  
				
			  Name:  George S. Davis				
			  Title:  Executive Vice President and Chief Financial Officer		

 [Signature Page to Supplemental Confirmation] 

                      ANNEX A 

COUNTERPARTY SETTLEMENT PROVISIONS 

1.            The following Counterparty Settlement Provisions
shall apply to the extent indicated under the Master Confirmation: 
  

			
	 Settlement Currency:
		 USD

		
	 Settlement Method Election:
		 Applicable; provided that (i) Section 7.1 of the Equity Definitions is hereby amended by deleting the word “Physical” in the sixth line thereof
and replacing it with the words “Net Share” and (ii) the Electing Party may make a settlement method election only if the Electing Party represents and warrants to Dealer in writing on the date it notifies Dealer of its election that, as
of such date, the Electing Party is not aware of any material non-public information concerning Counterparty or the Shares and is electing the settlement method in good faith and not as part of a plan or scheme to evade compliance with the federal
securities laws.

		
	 Electing Party:
		 Counterparty

	
	 Settlement Method Election Date:           The earlier of (i) the second Calculation Date
immediately following

			 the Accelerated Termination Date (in which case the election under Section 7.1 of the Equity Definitions shall be made no later than 10 minutes prior to the
open of trading on the Exchange on such second Calculation Date) and (ii) the Scheduled Termination Date.

		
	 Default Settlement Method:
		 Cash Settlement

		
	 Forward Cash Settlement

Amount:
		  
 An amount equal to the Number of Shares to be Delivered
multiplied by the Settlement Price.

		
	 Settlement Price:
		 An amount equal to the average of the VWAP Prices for the Calculation Dates in the Settlement Valuation Period, subject to Valuation Disruption as specified in
the Master Confirmation.

		
	 Settlement Valuation Period:
		 A number of Calculation Dates selected by Dealer in its reasonable discretion, beginning on the Calculation Date immediately following the earlier of (i) the
Scheduled Termination Date or (ii) the Calculation Date immediately following the Termination Date. Dealer shall notify Counterparty of the last Calculation Date of the Settlement Valuation Period on or prior to the Exchange Business Day immediately
following such last Calculation Date.

		
	 Cash Settlement:
		 If Cash Settlement is applicable, then Buyer shall pay to Seller the absolute value of the Forward Cash Settlement Amount on the Cash Settlement Payment
Date.

  
 1 

			
		
	 Cash Settlement

Payment Date:
		  
 The later of (x) the Exchange Business Day immediately
following the last day of the Settlement Valuation Period and (y) the earlier of the Exchange Business Day immediately following the date of Counterparty’s Settlement Method Election and the Settlement Method Election Date.

		
	 Net Share Settlement

Procedures:
		  
 If Net Share Settlement is applicable, Net Share
Settlement shall be made in accordance with paragraphs 2 through 7 below.

 2.            Net Share
Settlement shall be made by delivery on the Cash Settlement Payment Date of a number of Shares satisfying the conditions set forth in paragraph 3 below (the “Registered Settlement Shares”), or a number of Shares not satisfying such
conditions (the “Unregistered Settlement Shares”), in either case with a value equal to the absolute value of the Forward Cash Settlement Amount, with such Shares’ value based on the value thereof to Dealer (which value shall,
in the case of Unregistered Settlement Shares, take into account a commercially reasonable illiquidity discount), in each case as determined by the Calculation Agent; provided that if Counterparty, in its good faith determination, is
prohibited by law or contract from disclosing all material non-public information known to Counterparty concerning Counterparty and the Shares to any potential purchasers of such Settlement Shares (or the board of directors of Counterparty
determines in good faith that public disclosure of such material non-public information at such time is not otherwise required and would reasonably be expected to materially adversely affect Counterparty or materially adversely affect or materially
adversely interfere with any bona fide material financing of Counterparty or any material transaction under consideration by Counterparty), then the sale of such Settlement Shares shall not be required to commence or may be suspended until
Counterparty is able to disclose such information (including without such adverse effect, as applicable), provided that Counterparty shall, no later than the date that is two weeks following the Cash Settlement Payment Date, either (x) disclose
all such information (to the extent then still constituting material non-public information) to potential purchasers of such Settlement Shares reasonably identified by Dealer in order to permit such sale of such Settlement Shares to commence or
continue or (y) elect for Cash Settlement to instead apply, in which case the Cash Settlement Payment Date shall be deemed to be the date of such election. 

3.            Counterparty may only deliver Registered Settlement
Shares pursuant to paragraph 2 above if: 
 (a)          a registration
statement covering public resale of the Registered Settlement Shares by Dealer (the “Registration Statement”) shall have been filed with the Securities and Exchange Commission under the Securities Act and been declared or otherwise
become effective on or prior to the date of delivery, and no stop order shall be in effect with respect to the Registration Statement; a printed prospectus relating to the Registered Settlement Shares (including any prospectus supplement thereto,
the “Prospectus”) shall have been delivered to Dealer, in such quantities as Dealer shall reasonably have requested, on or prior to the date of delivery; 

(b)          the form and content of the Registration Statement and the
Prospectus (including, without limitation, any sections describing the plan of distribution) shall be reasonably satisfactory to Dealer; 

(c)          as of or prior to the date of delivery, Dealer and its agents
shall have been afforded a reasonable opportunity to conduct a due diligence investigation with respect to Counterparty customary in scope for underwritten offerings of similar size of equity securities of issuers comparable to Counterparty under
like circumstances and the results of such investigation are satisfactory to Dealer, in its discretion; and 

(d)          as of the date of delivery, an agreement (the
“Underwriting Agreement”) shall have been entered into with Dealer in connection with the public resale of the Registered Settlement Shares by Dealer substantially similar to underwriting agreements customary for underwritten
offerings of similar size of equity securities of issuers comparable to Counterparty under like circumstances, in form and substance reasonably 

  
 2 

 
satisfactory to Dealer, which Underwriting Agreement shall include, without limitation, provisions substantially similar to those contained in such underwriting agreements relating, without
limitation, to the mutual indemnification of, and contribution in connection with the liability of the parties and the provision of customary opinions, accountants’ comfort letters and lawyers’ negative assurance letters. 

4.            If Counterparty delivers Unregistered Settlement
Shares pursuant to paragraph 2 above: 
 (a)          all Unregistered
Settlement Shares shall be delivered to Dealer (or any affiliate of Dealer designated by Dealer) pursuant to the exemption from the registration requirements of the Securities Act provided by Section 4(a)(2) thereof; 

(b)          as of or prior to the date of delivery, Dealer and any
potential purchaser of any such shares from Dealer (or any affiliate of Dealer designated by Dealer) identified by Dealer shall be afforded a commercially reasonable opportunity to conduct a due diligence investigation with respect to Counterparty
customary in scope for private placements of equity securities (including, without limitation, the right to have made available to them for inspection all financial and other records, pertinent corporate documents and other information reasonably
requested by them); provided that prior to receiving or being granted access to any such information, any such potential purchaser may be required by Counterparty to enter into a customary nondisclosure agreement with Counterparty in respect
of any such due diligence investigation; 
 (c)          as of the date
of delivery, Counterparty shall enter into an agreement (a “Private Placement Agreement”) with Dealer (or any affiliate of Dealer designated by Dealer) in connection with the private placement of such shares by Counterparty to
Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), substantially similar to private placement purchase agreements customary for private placements of similar size of equity securities of issuers
comparable to Counterparty under like circumstances, in form and substance commercially reasonably satisfactory to Dealer, which Private Placement Agreement shall include, without limitation, provisions substantially similar to those contained in
such private placement purchase agreements relating, without limitation, to the mutual indemnification of, and contribution in connection with the liability of the parties, and the provision of customary opinions, accountants’ comfort letters
and lawyers’ negative assurance letters, and shall provide for the payment by Counterparty of all reasonable and documented out of pocket fees and expenses paid to third parties in connection with such resale, including all fees and expenses of
one counsel for Dealer, and shall contain representations, warranties, covenants and agreements of the parties reasonably necessary or advisable to establish and maintain the availability of an exemption from the registration requirements of the
Securities Act for such resales; and 
 (d)          in connection with
the private placement of such shares by Counterparty to Dealer (or any such affiliate) and the private resale of such shares by Dealer (or any such affiliate), Counterparty shall, if so requested by Dealer, prepare, in cooperation with Dealer, a
private placement memorandum in form and substance reasonably satisfactory to Dealer. 

5.            Dealer, itself or through an affiliate (the
“Selling Agent”) or any underwriter(s), will sell all, or such lesser portion as may be required hereunder, of the Registered Settlement Shares or Unregistered Settlement Shares and any Makewhole Shares (as defined below) (together,
the “Settlement Shares”) delivered by Counterparty to Dealer pursuant to paragraph 6 below commencing on the Cash Settlement Payment Date and continuing until the date on which the aggregate Net Proceeds (as such term is defined
below) of such sales, as determined by Dealer, is equal to the absolute value of the Forward Cash Settlement Amount (such date, the “Final Resale Date”). If the proceeds of any sale(s) made by Dealer, the Selling Agent or any
underwriter(s), net of any commercially reasonable fees and commissions (including, without limitation, underwriting or placement fees) customary for similar transactions under the circumstances at the time of the offering, together with
commercially reasonable carrying charges and expenses incurred in connection with the offer and sale of the Shares (including, but without limitation to, the covering of any over-allotment or short position (syndicate or otherwise)) (the
“Net Proceeds”) exceed the absolute value of the Forward Cash Settlement Amount, Dealer will refund, in USD, such excess to Counterparty on the date that is three (3) Currency Business Days following the Final Resale Date, and,
if any portion of the Settlement Shares remains unsold, Dealer shall return to Counterparty on that date such unsold Shares. 

  
 3 

 6.            If the
Calculation Agent determines that the Net Proceeds received from the sale of the Registered Settlement Shares or Unregistered Settlement Shares or any Makewhole Shares, if any, pursuant to this paragraph 6 are less than the absolute value of the
Forward Cash Settlement Amount (the amount in USD by which the Net Proceeds are less than the absolute value of the Forward Cash Settlement Amount being the “Shortfall” and the date on which such determination is made, the
“Deficiency Determination Date”), Counterparty shall on the Calculation Date next succeeding the Deficiency Determination Date (the “Makewhole Notice Date”) deliver to Dealer, through the Selling Agent, a notice of
Counterparty’s election that Counterparty shall either (i) pay an amount in cash equal to the Shortfall on the day that is one (1) Currency Business Day after the Makewhole Notice Date, or (ii) deliver additional Shares. If
Counterparty elects to deliver to Dealer additional Shares, then Counterparty shall deliver additional Shares in compliance with the terms and conditions of paragraph 3 or paragraph 4 above, as the case may be (the “Makewhole
Shares”), on the first Clearance System Business Day which is also a Calculation Date following the Makewhole Notice Date in such number as the Calculation Agent reasonably believes would have a market value on that Calculation Date equal
to the Shortfall. Such Makewhole Shares shall be sold by Dealer in accordance with the provisions above; provided that if the sum of the Net Proceeds from the sale of the originally delivered Shares and the Net Proceeds from the sale of any
Makewhole Shares is less than the absolute value of the Forward Cash Settlement Amount then Counterparty shall, at its election, either make such cash payment or deliver to Dealer further Makewhole Shares until such Shortfall has been reduced to
zero. 
 7.            Notwithstanding the foregoing, in no
event shall the aggregate number of Settlement Shares be greater than the Reserved Shares minus the amount of any Shares actually delivered by Counterparty under any other Transaction(s) under this Master Confirmation (the result of such
calculation, the “Capped Number”). Counterparty represents and warrants (which shall be deemed to be repeated on each day that a Transaction is outstanding) that the Capped Number is equal to or less than the number of Shares
determined according to the following formula: 
 A – B 

 

			
	Where    		A  =  the number of authorized but unissued shares of the Counterparty that are not reserved for future issuance on the date of the determination of the Capped Number; and
			  
 B  =  the maximum number of Shares required to be
delivered to third parties if Counterparty elected Net Share Settlement of all transactions in the Shares (other than Transactions in the Shares under this Master Confirmation) with all third parties that are then currently outstanding and
unexercised.

 “Reserved Shares” means initially, 3,000,000,000 Shares. The Reserved
Shares may be increased or decreased as agreed by the parties in a Supplemental Confirmation. 

  
 4Exhibit 10.1

 

EXECUTION COPY

  

CREDIT AGREEMENT

 

dated as of May 18, 2015

 

among

 

CYALUME TECHNOLOGIES HOLDINGS, INC.

AND CERTAIN OF ITS SUBSIDIARIES,

as Borrower,

 

THE VARIOUS FINANCIAL INSTITUTIONS PARTY
HERETO,

as Lenders,

 

and

 

MONROE CAPITAL MANAGEMENT ADVISORS, LLC,

as Administrative Agent and Lead Arranger

   

 

 

 

    	 

    	 

    

 

Table
of Contents

 

	 	 	Page
	 	 	 
	Section 1	DEFINITIONS	1
	1.1	Definitions	1
	1.2	Other Interpretive Provisions	26
	 	 	 
	Section 2	COMMITMENTS OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES	26
	2.1	Commitments	26
	 	 	 
	 	2.1.1	Revolving Commitment	26
	 	2.1.2	Term A Loan Commitment	27
	 	2.1.3	Delayed Draw Term Loan Commitment	27
	 	2.1.4	L/C Commitment	27
	 	 	 
	2.2	Loan Procedures	27
	 	 	 
	 	2.2.1	Various Types of Loans	27
	 	2.2.2	Borrowing Procedures	28
	 	 	 
	2.3	Letter of Credit Procedures	29
	 	 	 
	 	2.3.1	L/C Applications	29
	 	2.3.2	Participations in Letters of Credit	29
	 	2.3.3	Reimbursement Obligations	30
	 	2.3.4	Funding by Lenders to Issuing Lender	31
	 	 	 
	2.4	Commitments Several	31
	2.5	Certain Conditions	31
	2.6	Defaulting Lenders	31
	 	 	 
	Section 3	EVIDENCING OF LOANS	33
	3.1	Notes	33
	3.2	Recordkeeping	34
	 	 	 
	Section 4	INTEREST	34
	4.1	Interest Rates	34
	4.2	Interest Payment Dates	34
	4.3	Setting and Notice of LIBOR Rates	34
	4.4	Computation of Interest	35
	 	 	 
	Section 5	FEES	35
	5.1	Non-Use Fee	35
	5.2	Letter of Credit Fees	35
	5.3	Administrative Agent’s Fees	35
	5.4	Delayed Draw Term Loan Non-Use Fee	36

 

    	i

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	Section 6	REDUCTION OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS	36
	6.1	Reduction or Termination of the Revolving Commitment	36
	 	 	 
	 	6.1.1	Voluntary Reduction or Termination of the Revolving Commitment	36
	 	6.1.2	Mandatory Reductions of Revolving Commitment	36
	 	6.1.3	All Reductions of the Revolving Commitment	36
	 	6.1.4	Voluntary Reduction or Termination of the Delayed Draw Term Loan Commitment	36
	 	6.1.5	All Reductions of the Delayed Draw Term Loan Commitment	37
	 	 	 
	6.2	Prepayments	37
	 	 	 
	 	6.2.1	Voluntary Prepayments	37
	 	6.2.2	Mandatory Prepayments	37
	 	 	 
	6.3	Manner of Prepayments	38
	 	 	 
	 	6.3.1	All Prepayments	38
	 	 	 
	6.4	Repayments	38
	 	 	 
	 	6.4.1	Revolving Loans	38
	 	6.4.2	Term A Loans	39
	 	6.4.3	Delayed Draw Term Loans	39
	 	 	 
	Section 7	MAKING AND PRORATION OF PAYMENTS; SETOFF; TAXES	40
	7.1	Making of Payments	40
	7.2	Application of Certain Payments	41
	7.3	Due Date Extension	41
	7.4	Setoff	41
	7.5	Proration of Payments	41
	7.6	Taxes	41
	 	 	 
	Section 8	INCREASED COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS	43
	8.1	Increased Costs	43
	8.2	Basis for Determining Interest Rate Inadequate or Unfair	44
	8.3	Changes in Law Rendering LIBOR Loans Unlawful	45
	8.4	Funding Losses	45
	8.5	Right of Lenders to Fund through Other Offices	45
	8.6	Discretion of Lenders as to Manner of Funding	46
	8.7	Mitigation of Circumstances; Replacement of Lenders	46
	8.8	Conclusiveness of Statements; Survival of Provisions	46

 

    	ii

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	Section 9	REPRESENTATIONS AND WARRANTIES	47
	9.1	Organization	47
	9.2	Authorization; No Conflict	47
	9.3	Validity and Binding Nature	47
	9.4	Financial Condition	47
	9.5	No Material Adverse Change	48
	9.6	Litigation and Contingent Liabilities	48
	9.7	Ownership of Properties; Liens	48
	9.8	Equity Ownership; Subsidiaries	48
	9.9	Pension Plans	48
	9.10	Investment Company Act	49
	9.11	Compliance with Laws	49
	9.12	Regulation U	49
	9.13	Taxes	49
	9.14	Solvency, etc	50
	9.15	Environmental Matters	50
	9.16	Insurance	51
	9.17	Real Property	51
	9.18	Information	51
	9.19	Intellectual Property	51
	9.20	Burdensome Obligations	52
	9.21	Labor Matters	52
	9.22	Anti-Terrorism Laws	52
	9.23	No Default	52
	9.24	Hedging Agreements	52
	9.25	OFAC	53
	9.26	Patriot Act	53
	9.27	Reserved	53
	9.28	Subordinated Debt	53
	9.29	Holdings	53
	9.30	French Subsidiary	54
	 	 	 
	Section 10	AFFIRMATIVE COVENANTS	54
	10.1	Reports, Certificates and Other Information	54
	 	 	 
	 	10.1.1	Annual Report	54
	 	10.1.2	Interim Reports	54
	 	10.1.3	Compliance Certificates	55
	 	10.1.4	Reports to the SEC and to Shareholders	55
	 	10.1.5	Notice of Default, Litigation and ERISA Matters	55

 

    	iii

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	 	10.1.6	Borrowing Base Certificates; Accounts Receivable and Inventory Reports	56
	 	10.1.7	Management Reports	56
	 	10.1.8	Projections	56
	 	10.1.9	Subordinated Debt Notices	57
	 	10.1.10	Updated Schedule	57
	 	10.1.11	Other Information	57
	 	 	 
	10.2	Books, Records and Inspections	57
	10.3	Maintenance of Property; Insurance	58
	10.4	Compliance with Laws; Payment of Taxes and Liabilities	59
	10.5	Maintenance of Existence, etc	59
	10.6	Use of Proceeds	59
	10.7	Employee Benefit Plans	60
	10.8	Environmental Matters	60
	10.9	Further Assurances	61
	10.10	Accounts	61
	10.11	Reserved	61
	10.12	Post Closing Covenants	61
	10.13	Holdings	62
	 	 	 
	Section 11	NEGATIVE COVENANTS	62
	11.1	Debt	62
	11.2	Liens	64
	11.3	Operating Leases	65
	11.4	Restricted Payments	65
	11.5	Mergers, Consolidations, Sales	65
	11.6	Modification of Organizational Documents	66
	11.7	Transactions with Affiliates	66
	11.8	Unconditional Purchase Obligations	66
	11.9	Inconsistent Agreements	66
	11.10	Business Activities; Issuance of Equity	66
	11.11	Investments	66
	11.12	Restriction of Amendments to Certain Documents	67
	11.13	Fiscal Year	67
	11.14	Financial Covenants	68
	 	 	 
	 	11.14.1	Fixed Charge Coverage Ratio	68
	 	11.14.2	Reserved	68
	 	11.14.3	Senior Debt to EBITDA Ratio	68
	 	11.14.4	Capital Expenditures	69

 

    	iv

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	 	11.14.5	EBITDA	69
	 	 	 
	11.15	Cancellation of Debt	70
	11.16	Transfer to Foreign Subsidiaries	70
	11.17	Compliance with Laws	71
	11.18	French Accounts	71
	11.19	French Subsidiary	71
	 	 	 
	Section 12	EFFECTIVENESS; CONDITIONS OF LENDING, ETC	71
	12.1	Initial Credit Extension	71
	 	 	 
	 	12.1.1	Agreement, Notes and other Loan Documents	71
	 	12.1.2	Authorization Documents	71
	 	12.1.3	Consents, etc	71
	 	12.1.4	Letter of Direction	72
	 	12.1.5	Guaranty and Collateral Agreement	72
	 	12.1.6	Perfection Certificate	72
	 	12.1.7	Colon Debt	72
	 	12.1.8	Collateral Access Agreements	72
	 	12.1.9	Control Agreements	72
	 	12.1.10	Opinions of Counsel	72
	 	12.1.11	Insurance	72
	 	12.1.12	Payment of Fees	72
	 	12.1.13	Solvency Certificate	73
	 	12.1.14	Pro Forma	73
	 	12.1.15	Environmental Reports	73
	 	12.1.16	Search Results; Lien Terminations	73
	 	12.1.17	Filings, Registrations and Recordings	73
	 	12.1.18	Closing Certificate, Consents and Permits	73
	 	12.1.19	Financial Statements	73
	 	12.1.20	No Material Adverse Change	73
	 	12.1.21	Investment Documents	74
	 	12.1.22	Employment Agreements; Validity and Support Agreements	74
	 	12.1.23	Financial Tests	74
	 	12.1.24	Diligence	74
	 	12.1.25	Condition	74
	 	12.1.26	Background Checks	74
	 	12.1.27	Approvals	74
	 	12.1.28	Maximum Revolving Outstandings	74
	 	12.1.29	Borrowing Base Certificate	75
	 	12.1.30	Other	75

 

    	v

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	12.2	Conditions	75
	 	 	 
	 	12.2.1	Compliance with Warranties, No Default, etc	75
	 	12.2.2	Confirmatory Certificate	76
	 	 	 
	 	 	 
	Section 13	EVENTS OF DEFAULT AND THEIR EFFECT	76
	13.1	Events of Default	76
	 	 	 
	 	13.1.1	Non-Payment of the Loans, etc	76
	 	13.1.2	Non-Payment of Other Debt	76
	 	13.1.3	Other Material Obligations	76
	 	13.1.4	Bankruptcy, Insolvency, etc	76
	 	13.1.5	Non-Compliance with Loan Documents	77
	 	13.1.6	Representations; Warranties	77
	 	13.1.7	Pension Plans	77
	 	13.1.8	Judgments	77
	 	13.1.9	Invalidity of Collateral Documents, etc	77
	 	13.1.10	Invalidity of Subordination Provisions, etc	77
	 	13.1.11	Change of Control	78
	 	13.1.12	Public Company Failure	78
	 	13.1.13	Material Adverse Effect	78
	 	13.1.14	Regulatory Violation	78
	 	13.1.15	Settlement Agreements	78
	 	 	 
	13.2	Effect of Event of Default	78
	13.3	Credit Bidding	79
	 	 	 
	Section 14	THE AGENT	79
	14.1	Appointment and Authorization	79
	14.2	Issuing Lenders	80
	14.3	Delegation of Duties	80
	14.4	Exculpation of Administrative Agent	80
	14.5	Reliance by Administrative Agent	80
	14.6	Notice of Default	81
	14.7	Credit Decision	81
	14.8	Indemnification	82
	14.9	Administrative Agent in Individual Capacity	82
	14.10	Successor Administrative Agent	82
	14.11	Collateral Matters	83
	14.12	Restriction on Actions by Lenders	83
	14.13	Administrative Agent May File Proofs of Claim	84
	14.14	Other Agents; Arrangers and Managers	84

 

    	vi

    	 

    

 

Table
of Contents

(continued)

 

	 	 	Page
	 	 	 
	Section 15	GENERAL	85
	15.1	Waiver; Amendments	86
	15.2	Confirmations	86
	15.3	Notices	86
	15.4	Computations	87
	15.5	Costs, Expenses and Taxes	87
	15.6	Assignments; Participations	87
	15.7	Register	89
	15.8	GOVERNING LAW	89
	15.9	Confidentiality; Non-Public Information	90
	15.10	Severability	91
	15.11	Nature of Remedies	91
	15.12	Entire Agreement	91
	15.13	Counterparts	92
	15.14	Successors and Assigns	92
	15.15	Captions	92
	15.16	Customer Identification – USA Patriot Act Notice	92
	15.17	INDEMNIFICATION BY LOAN PARTIES	92
	15.18	Nonliability of Lenders	93
	15.19	FORUM SELECTION AND CONSENT TO JURISDICTION	94
	15.20	WAIVER OF JURY TRIAL	94
	 	 	 
	Section 16	JOINT AND SEVERAL LIABILITY	94
	 	 	 
	Section 17	Appointment of Borrower Representative.	98

 

ANNEXES

 

	ANNEX A	Lenders and Pro Rata Shares
	ANNEX B	Addresses for Notices

 

SCHEDULES

 

	SCHEDULE 9.6	Litigation and Contingent Liabilities
	SCHEDULE 9.8	Subsidiaries
	SCHEDULE 9.16	Insurance
	SCHEDULE 9.17	Real Property
	SCHEDULE 9.21	Labor Matters
	SCHEDULE 10.12	Post-Closing Obligations
	SCHEDULE 11.1	Existing Debt
	SCHEDULE 11.2	Existing Liens

 

    	vii

    	 

    

 

	SCHEDULE 11.7	Transactions with Affiliates
	SCHEDULE 11.11	Investments
	SCHEDULE 12.1	Debt to be Repaid

 

EXHIBITS

 

	
        EXHIBIT A
	Form of Note (Section 3.1)
	EXHIBIT B	Form of Compliance Certificate (Section 10.1.3)
	EXHIBIT C	Form of Borrowing Base Certificate (Section 10.1.6)
	EXHIBIT D	Form of Assignment Agreement (Section 15.6.1)
	EXHIBIT E	Form of Notice of Borrowing (Section 2.2.2)

 

    	viii

    	 

    

 

CREDIT AGREEMENT

 

THIS CREDIT AGREEMENT dated
as of May 18, 2015 (this “Agreement”) is entered into among (i) Cyalume
Technologies Holdings, Inc., a Delaware corporation (“Holdings”), (ii) Cyalume
Technologies, Inc., a Delaware corporation (“CTI”), (iii) Cyalume
Specialty Products, Inc., a Delaware corporation (“CSPI”), (iv) COMBAT TRAINING SOLUTIONS, INC.,
a Colorado corporation (“CTSI”), (v) Cyalume Realty, Inc.,
a Delaware corporation (“CRI”), and (vi)  CT SAS HOLDINGS, INC., a Delaware corporation (“SAS
Holdings”, and together with Holdings, CTI, CSPI, CTSI and CRI, individually and collectively referred to herein as “Borrower”),
(vi) the financial institutions that are or may from time to time become parties hereto (together with their respective successors
and assigns, the “Lenders”), and (vii) Monroe Capital Management
Advisors, LLC (in its individual capacity, “Monroe Capital”), as administrative agent for the Lenders.

 

RECITALS

 

WHEREAS, Borrower has requested
that the Lenders make Loans to provide the funds required to refinance the existing Debt of Borrower, to make the Omniglow Settlement
Payment and to provide for the ongoing general corporate purposes and working capital needs of Borrower as further provided
herein up to an aggregate principal amount of $25,000,000 in the form of (a) Term A Loans to Borrower in an aggregate
principal amount not to exceed $18,000,000, (b) Revolving Loans to Borrower from time to time in an aggregate principal amount
not to exceed $5,000,000, and (c) Delayed Draw Term Loans to Borrower in an aggregate principal amount not to exceed $2,000,000,
and the Lenders are willing to do so on the terms and conditions set forth herein.

 

WHEREAS, to secure the
Loans and other Obligations, Borrower is granting to Administrative Agent, for the benefit of Administrative Agent and Lenders,
a security interest in and lien upon all of Borrower’s real and personal property.

 

In consideration of the
mutual agreements herein contained, the parties hereto agree as follows:

 

Section 1     DEFINITIONS.

 

1.1           Definitions.
When used herein the following terms shall have the following meanings:

 

“Account Debtor”
is defined in the Guaranty and Collateral Agreement.

 

“Account or Accounts”
is defined in the UCC.

 

“Acquisition”
means any transaction or series of related transactions for the purpose of or resulting, directly or indirectly, in (a) the
acquisition of all or a substantial portion of the assets of a Person, or of all or a substantial portion of any business or division
of a Person, (b) the acquisition of in excess of 50% of the Capital Securities of any Person, or otherwise causing any Person
to become a Subsidiary, or (c) a merger or consolidation or any other combination with another Person (other than a Person
that is already a Subsidiary).

 

    	 

    	 

    

 

“Administrative
Agent” means Monroe Capital in its capacity as administrative agent for the Lenders hereunder and any successor thereto
in such capacity.

 

“Affected Loan”
is defined in Section 8.3.

 

“Affiliate”
of any Person means (a) any other Person which, directly or indirectly, controls or is controlled by or is under common control
with such Person, (b) any officer, manager or director of such Person and (c) with respect to any Lender, any entity
administered or managed by such Lender or an Affiliate or investment advisor thereof and which is engaged in making, purchasing,
holding or otherwise investing in commercial loans. A Person shall be deemed to be “controlled by” any other Person
if such Person possesses, directly or indirectly, power to vote 10% or more of the securities (on a fully diluted basis) having
ordinary voting power for the election of directors or managers or power to direct or cause the direction of the management and
policies of such Person whether by contract or otherwise. Unless expressly stated otherwise herein, neither Administrative Agent
nor any Lender shall be deemed an Affiliate of any Loan Party.

 

“Agent Fee Letter”
means the fee letter dated as of even date herewith between Borrower and Administrative Agent.

 

“Agreement”
is defined in the preamble of this Agreement.

 

“Allocable Amount”
is defined in Section 16.6.

 

“Applicable Margin”
means the following percentages per annum: (a) with respect to Revolving Loans, 9.00% for LIBOR Loans and 8.00% for Base Rate
Loans, (b) with respect to Term A Loans, 9.00% for LIBOR Loans and 8.00% for Base Rate Loans, and (c) with respect to Delayed Draw
Term Loans, 9.00% for LIBOR Loans and 8.00% for Base Rate Loans.

 

“Approved Fund”
means (i) any Person (other than a natural person) engaged in making, purchasing, holding, or investing in commercial loans and
similar extensions of credit and that is advised, administered, or managed by a Lender, an Affiliate of a Lender (or an entity
or an Affiliate of an entity that administers, advises or manages a Lender); (ii) with respect to any Lender that is an investment
fund, any other investment fund that invests in loans and that is advised, administered or managed by the same investment advisor
as such Lender or by an Affiliate of such investment advisor; and (iii) any third party which provides “warehouse financing”
to a Person described in the preceding clause (i) or (ii) (and any Person described in said clause (i) or (ii) shall also be deemed
an Approved Fund with respect to such third party providing such warehouse financing).

 

“Asset Disposition”
means the sale, lease, assignment or other transfer for value (each, a “Disposition”) by any Loan Party to any
Person (other than Borrower) of any asset or right of such Loan Party (including, the loss, destruction or damage of any thereof
or any actual or threatened (in writing to any Loan Party) condemnation, confiscation, requisition, seizure or taking thereof),
other than Excluded Asset Dispositions.

 

    	2

    	 

    

 

“Assignee”
is defined in Section 15.6.1.

 

“Assignment Agreement”
is defined in Section 15.6.1.

 

“Attorney Costs”
means, with respect to any Person, all reasonable fees and charges of any counsel to such Person and all court costs and other
out-of-pocket legal expenses.

 

“Bank Product
Agreements” means those certain agreements entered into from time to time between any Loan Party and a Lender or its
Affiliates in connection with any of the Bank Products, including without limitation, Hedging Agreements.

 

“Bank Product
Obligations” means all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the
Loan Parties to any Lender or its Affiliates pursuant to or evidenced by the Bank Product Agreements and irrespective of whether
for the payment of money, whether direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising,
and including all such amounts that a Loan Party is obligated to reimburse to Administrative Agent or any Lender as a result of
Administrative Agent or such Lender purchasing participations or executing indemnities or reimbursement obligations with respect
to the Bank Products provided to the Loan Parties pursuant to the Bank Product Agreements.

 

“Bank Products”
means any service provided to, facility extended to, or transaction entered into with, any Loan Party by any Lender or its Affiliates
consisting of, (a) deposit accounts, (b) cash management services, including, controlled disbursement, lockbox, electronic
funds transfers (including, book transfers, fedwire transfers, and ACH transfers), online reporting and other services relating
to accounts maintained with any Lender or its Affiliates, (c) debit cards and credit cards, (d) Hedging Agreements or
(e) so long as prior written notice thereof is provided by Lender (or its Affiliate) providing such service, facility or transaction
and Administrative Agent consents in writing to its inclusion as a Bank Product, any other service provided to, facility extended
to, or transaction entered into with, any Loan Party by a Lender or its Affiliates.

 

“Bankruptcy Code”
means the Federal Bankruptcy Reform Act of 1978 (11 U.S.C. §101, et seq.), as amended and in effect from time to time
and the regulations issued from time to time thereunder.

 

“Base Rate”
means at any time a fluctuating rate per annum equal to the greatest of (a) the Federal Funds Rate plus 0.5%, (b) the
Prime Rate, (c) 2.00%, and (d) the LIBOR Rate plus 1.0%.

 

“Base Rate Loan”
means any Loan which bears interest at or by reference to the Base Rate.

 

“Borrower”
is defined in the preamble of this Agreement.

 

“Borrower Representative”
means Holdings.

 

    	3

    	 

    

 

“Borrowing Base”
means an amount equal to the sum of (a) 85% of the unpaid amount (net of such reserves and allowances as Administrative Agent
deems necessary in its reasonable discretion, without duplication) of all Eligible Accounts, plus (b) 60% of the value of
all Eligible Inventory valued at the lower of cost or market (net of such reserves and allowances as Administrative Agent deems
necessary in its reasonable discretion, without duplication). Provided that no Default or Event of Default has occurred and is
continuing, Administrative Agent shall give written notice to Borrower Representative of Administrative Agent’s determination
of any new reserves from the Borrowing Base within five (5) Business Days of such determination.

 

“Borrowing Base
Certificate” means a certificate substantially in the form of Exhibit C.

 

“BSA”
is defined in Section 10.4.

 

“Business Day”
means any day other than a Saturday, Sunday or other day on which commercial banks are authorized to close under the laws of, or
are in fact closed in, Illinois and, in the case of a Business Day which relates to a LIBOR Loan, on which dealings are carried
on in the London interbank eurodollar market.

 

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

 

“Capital Lease”
means, with respect to any Person, any lease of (or other agreement conveying the right to use) any real or personal property by
such Person that, in conformity with GAAP, is accounted for as a capital lease on the balance sheet of such Person.

 

“Capital Securities”
means, with respect to any Person, all shares, interests, participations or other equivalents (however designated, whether voting
or non-voting) of such Person’s capital, whether now outstanding or issued or acquired after the Closing Date, including
common shares, preferred shares, membership interests in a limited liability company, limited or general partnership interests
in a partnership, interests in a Trust, interests in other unincorporated organizations or any other equivalent of such ownership
interest.

 

“Cash Collateralize”
means to deliver cash collateral to an Issuing Lender, to be held as cash collateral for outstanding Letters of Credit, pursuant
to documentation satisfactory to such Issuing Lender and in an amount satisfactory to such Issuing Lender which amount may be up
to 110% of the Stated Amount of outstanding Letters of Credit. Derivatives of such term have corresponding meanings.

 

    	4

    	 

    

 

“Cash Equivalent
Investment” means, at any time, (a) any evidence of Debt, maturing not more than one year after such time, issued
or guaranteed by the United States Government or any agency thereof, (b) commercial paper, maturing not more than one year
from the date of issue, or corporate demand notes, in each case (unless issued by a Lender or its holding company) rated at least
A-l by Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc. or P-l by Moody’s
Investors Service, Inc., (c) any certificate of deposit, time deposit or banker’s acceptance, maturing not more than
one year after such time, or any overnight federal funds transaction that is issued or sold by any Lender or its holding company
(or by a commercial banking institution that is a member of the Federal Reserve System and has a combined capital and surplus and
undivided profits of not less than $500,000,000), (d) any repurchase agreement entered into with any Lender (or commercial
banking institution of the nature referred to in clause (c)) which (i) is secured by a fully perfected security interest
in any obligation of the type described in any of clauses (a) through (c) above and (ii) has a market value at the
time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of such Lender (or other commercial
banking institution) thereunder and (e) money market accounts or mutual funds which invest exclusively in assets satisfying
the foregoing requirements, and (f) other short term liquid investments approved in writing by Administrative Agent.

 

“CFC”
means a “controlled foreign corporation” as defined in Section 957(a) of the Code.

 

“Change of Control”
means the occurrence of any of the following events: (a) any Person or “group” (within the meaning of Rules 13d-3
and 13d-5 under the Securities and Exchange Act of 1934, as amended) shall have acquired beneficial ownership, directly or indirectly,
of 35% or more on a fully diluted basis of the voting and/or economic interest in the Capital Securities of Holdings (other than
Renova US Management, LLC d/b/a Columbus Nova or any of its Affiliates, including, without limitation, US VC Partners, L.P., and
Cova Small Cap Holdings) or shall have obtained, directly or indirectly, the power (whether or not exercised) to elect (through
contract, ownership of voting securities or otherwise) a majority of the members of the board of directors of Holdings or to direct
the management policies and decisions of Holdings; (b) the majority of the seats (other than vacant seats) on the board of
directors of Holdings shall cease to be occupied by Persons who either (i) were members of the board of directors of Holdings
on the Closing Date or (ii) were nominated for election by the board of directors of Holdings, a majority of whom were directors
on the Closing Date or whose election or nomination for election was previously approved by a majority of such directors; (c) Holdings
shall cease to own and control 100% of each class of the outstanding Capital Securities of each of CTI, CSPI and SAS Holdings;
(d) CTI shall cease to own and control 100% of each class of the outstanding Capital Securities of each of CTSI and CRI; (e)
SAS Holdings shall cease to own and control 100% of each class of the outstanding Capital Securities of Cyalume France; (f) Borrower
shall cease to, directly or indirectly, own and control 100% of each class of the outstanding Capital Securities of each other
Subsidiary; (g) Zivi Nedivi shall cease to hold the office of Chief Executive Officer of each of the Loan Parties unless a successor
is appointed within six (6) months of such cessation reasonably acceptable to Administrative Agent; or (h) a “Change
of Control” (or similar event) shall occur under any documents evidencing or relating to Subordinated Debt.  

 

“Closing Date”
is defined in Section 12.1.

 

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

 

“Collateral”
means “Collateral” (as defined in the Guaranty and Collateral Agreement) and any and all other property now or hereafter
securing Obligations.

 

    	5

    	 

    

 

“Collateral Access
Agreement” means an agreement in form and substance reasonably satisfactory to Administrative Agent pursuant to which
a mortgagee or lessor of real property on which collateral is stored or otherwise located, or a warehouseman, processor or other
bailee of Inventory or other property owned by any Loan Party, acknowledges the Liens of Administrative Agent, waives or subordinates
any Liens held by such Person on such property and consents to any equity pledge and enforcement thereof, and, in the case of any
such agreement with a mortgagee or lessor, permits Administrative Agent reasonable access to and use of such real property following
the occurrence and during the continuance of an Event of Default to remove, assemble, complete or sell any Collateral stored or
otherwise located thereon.

 

“Collateral Documents”
means, collectively, the Guaranty and Collateral Agreement, each Mortgage, each Collateral Access Agreement, each Perfection Certificate,
each control agreement and any other agreement or instrument pursuant to which Borrower, any Subsidiary or any other Person grants
or purports to grant collateral to Administrative Agent for the benefit of the Lenders or otherwise relates to such collateral.

 

“Colon Debt”
means unsecured Debt owing by Holdings to Antonio Colon pursuant to that certain Promissory Note dated as of November 19, 2013
in the original principal amount of $1,075,000 made by Holdings in favor of Antonio Colon.

 

“Colon Settlement
Agreement” means that certain Settlement Agreement dated as of November 19, 2013 among Antonio Colon, Holdings, CTI and
CRI.

 

“Commitment”
means, as to any Lender, such Lender’s commitment to make Loans, and to issue or participate in Letters of Credit, under
this Agreement. The initial amount of each Lender’s Commitment is set forth on Annex A.

 

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

 

“Compliance Certificate”
means a Compliance Certificate substantially in the form of Exhibit B.

 

“Computation Period”
means each period of twelve (12) consecutive months ending on the last day of a month or Fiscal Quarter, as applicable.

 

“Consolidated
Net Income” means, with respect to Holdings and its Subsidiaries for any period, the consolidated net income (or loss)
of Holdings and its Subsidiaries for such period, excluding (i) any gains (or loss) from Asset Dispositions, (ii) any
extraordinary gains or extraordinary losses (as characterized in accordance with GAAP), (iii) any gains (or loss) from discontinued
operations, (iv) the income of any Person (other than a Subsidiary of Holdings) in which Holdings or any of its Subsidiaries has
an ownership interest, except to the extent that any such income is actually received by Holdings or such Subsidiary in the form
of dividends or similar distributions, (v) the undistributed earnings of any Subsidiary of Holdings to the extent that the declaration
or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any Contractual
Obligation, governing document or law applicable to such Subsidiary, and (vi) the income of any Subsidiary of Holdings which is
not a guarantor of the Obligations (excluding Cyalume France).

 

    	6

    	 

    

 

“Contingent Liability”
means, with respect to any Person, each obligation and liability of such Person and all such obligations and liabilities of such
Person incurred pursuant to any agreement, undertaking or arrangement by which such Person: (a) guarantees, endorses or otherwise
becomes or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment,
to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, dividend,
obligation or other liability of any other Person in any manner (other than by endorsement of instruments in the course of collection),
including any indebtedness, dividend or other obligation which may be issued or incurred at some future time; (b) guarantees
the payment of dividends or other distributions upon the Capital Securities of any other Person; (c) undertakes or agrees
(whether contingently or otherwise): (i) to purchase, repurchase, or otherwise acquire any indebtedness, obligation or liability
of any other Person or any property or assets constituting security therefor, (ii) to advance or provide funds for the payment
or discharge of any indebtedness, obligation or liability of any other Person (whether in the form of loans, advances, stock purchases,
capital contributions or otherwise), or to maintain solvency, assets, level of income, working capital or other financial condition
of any other Person, or (iii) to make payment to any other Person other than for value received; (d) agrees to lease
property or to purchase securities, property or services from such other Person with the purpose or intent of assuring the owner
of such indebtedness or obligation of the ability of such other Person to make payment of the indebtedness or obligation; (e) to
induce the issuance of, or in connection with the issuance of, any letter of credit for the benefit of such other Person; or (f) undertakes
or agrees otherwise to assure a creditor against loss. The amount of any Contingent Liability shall (subject to any limitation
set forth herein) be deemed to be the outstanding principal amount (or maximum permitted principal amount, if larger) of the indebtedness,
obligation or other liability guaranteed or supported thereby.

 

“Contractual Obligation”
means, as to any Person, any provision of any security issued by such Person or of any agreement, instrument or other undertaking
to which such Person is a party or by which it or any of its assets or property is bound.

 

“Controlled Group”
means all members of a controlled group of corporations, all members of a controlled group of trades or businesses (whether or
not incorporated) under common control and all members of an affiliated service group which, together with Holdings or any of its
Subsidiaries, are treated as a single employer under Section 414 of the Code or Section 4001 of ERISA.

 

“Cyalume France”
means Cyalume Technologies, SAS, an entity organized under the laws of France.

 

    	7

    	 

    

 

“Debt”
of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money, (b) all indebtedness
evidenced by bonds, debentures, notes or similar instruments, (c) all obligations of such Person as lessee under Capital Leases
which have been or should be recorded as liabilities on a balance sheet of such Person in accordance with GAAP, (d) all obligations
of such Person to pay the deferred purchase price of property or services (excluding trade accounts payable in the ordinary course
of business), (e) all indebtedness secured by a Lien on the property of such Person, whether or not such indebtedness shall
have been assumed by such Person; provided that if such Person has not assumed or otherwise become liable for such indebtedness,
such indebtedness shall be measured at the fair market value of such property securing such indebtedness at the time of determination,
(f) all obligations, contingent or otherwise, with respect to the face amount of all letters of credit (whether or not drawn),
bankers’ acceptances and similar obligations issued for the account of such Person (including the Letters of Credit), (g) all
Hedging Obligations of such Person, (h) all Contingent Liabilities of such Person, (i) all Debt of any partnership of
which such Person is a general partner, (j) all non-compete payment obligations, earn-outs and similar obligations and (k) any
Capital Securities or other equity instrument, whether or not mandatorily redeemable, that under GAAP is characterized as debt,
whether pursuant to financial accounting standards board issuance No. 150 or otherwise.

 

“Debt to be Repaid”
means Debt listed on Schedule 12.1.

 

“Default”
means any event that, if it continues uncured, will, with lapse of time or notice or both, constitute an Event of Default.

 

“Defaulting Lender”
means any Lender that (a) has failed to fund any portion of the Loans or participations in Letters of Credit required to be
funded by it hereunder within one Business Day of the date required to be funded by it hereunder, (b) has otherwise failed
to pay over to Administrative Agent or any other Lender any other amount required to be paid by it hereunder within one (1) Business
Day of the date when due, unless the subject of a good faith dispute, (c) has been deemed or has a parent company that has
been deemed insolvent or become the subject of a bankruptcy or insolvency proceeding, (d) has notified Borrower, Administrative
Agent, any Issuing Lender or any Lender that it does not intend to comply with any of its funding obligations under this Agreement
or has made a public statement to the effect that it does not intend to comply with its funding obligations under this Agreement
or under other agreements in which it commits to extend credit or (e) has failed to confirm within three Business Days of
a request by Administrative Agent that it will comply with the terms of this Agreement relating to its obligations to fund prospective
Revolving Loans and participations in then outstanding Letters of Credit.

 

“Delayed Draw
Term Loan” is defined in Section 2.1.3.

 

“Delayed Draw
Term Loan Commitment” means, as to any Lender, such Lender’s commitment to make Delayed Draw Term Loans under this
Agreement. The amount of each Lender’s Delayed Draw Term Loan Commitment is set forth on Annex A. The aggregate amount
of the Delayed Draw Term Loan Commitments of all Lenders is $2,000,000.

 

“Delayed Draw
Term Loan Commitment Expiration Date” means January 10, 2016.

 

“Delayed Draw
Term Loan Non-Use Fee” is defined in Section 5.4.

 

“Delayed Draw
Term Loan Funded Amount” means, with respect to any Lender at any time, the original aggregate principal amount of all
Delayed Draw Term Loans funded by such Lender.

 

    	8

    	 

    

 

“Delayed Draw
Term Loan Funding Date” means the date that the Omniglow Settlement Payment is due and payable under the Omniglow Settlement
Agreement, which in any event shall not be earlier than December 1, 2015 (unless otherwise approved in writing by Administrative
Agent) or later than the Delayed Draw Term Loan Commitment Expiration Date.

 

“Designated Proceeds”
is defined in Section 6.2.2(a).

 

“Dollar”
and the sign “$” mean lawful money of the United States of America.

 

“EBITDA”
means, for any period, Consolidated Net Income for such period; plus, to the extent deducted in determining such Consolidated
Net Income, in each case, for such period: (i) Interest Expense, (ii) income tax expense, (iii) depreciation and
amortization, (iv) (A) non-recurring non-cash charges reducing such Consolidated Net Income which do not represent a cash
item in such period or any future period, (B) recurring non-cash foreign exchange losses and non-cash stock compensation expenses,
(v) board of director fees and expenses paid or payable (to the extent permitted to be paid hereunder) in an aggregate amount
not to exceed $25,000 per Fiscal Year, (vi) reasonable out-of-pocket legal costs, fees and expenses paid to counsel to Borrower
in connection with amendments or modifications of the Loan Documents in an aggregate amount not to exceed $25,000 per Fiscal Year
and out-of-pocket legal costs, fees and expenses paid to counsel to Administrative Agent in connection with amendments or modifications
of the Loan Documents, (vii) amendment, waiver or forbearance fees paid to, and charged by, the Administrative Agent or any Lender
in connection with any amendment to the Loan Documents, and (viii) transaction fees and expenses paid in connection with the
consummation of the transactions contemplated by this Agreement not to exceed $1,920,144 in the aggregate, provided, however,
that all such fees and expenses shall be paid within sixty (60) days after the Closing Date; minus to the extent included
in determining such Consolidated Net Income, all non-recurring non-cash income or gains for such period and recurring non-cash
foreign exchange gains for such period, provided, however, that the EBITDA of Cyalume France included in the total
EBITDA of Holdings and its Subsidiaries shall not exceed 35% of the total EBITDA of Holdings and its Subsidiaries that are guarantors
of the Obligations. Notwithstanding the foregoing, “EBITDA” shall be calculated as follows solely for each of the following
one month periods:

 

	ONE MONTH PERIOD 
 ENDING	 	EBITDA	 
	5/31/14	 	$	227,000	 
	6/30/14	 	$	221,000	 
	7/31/14	 	$	468,000	 
	8/31/14	 	$	449,000	 
	9/30/14	 	$	278,000	 
	10/31/14	 	$	550,000	 
	11/30/14	 	$	660,000	 
	12/31/14	 	$	858,000	 
	1/31/15	 	$	130,000	 
	2/28/15	 	$	749,000	 
	3/31/15	 	$	249,000	 

 

    	9

    	 

    

 

“ECF Percentage”
means 50%.

 

“Eligible Account”
means an Account owing to Borrower which meets each of the following requirements:

 

(a)          it
arises from the sale or lease of goods or the rendering of services which have been fully performed by Borrower; and if it arises
from the sale or lease of goods, (i) such goods comply in all material respects with such Account Debtor’s specifications
(if any) and have been delivered to such Account Debtor and (ii) Borrower has possession of, or if reasonably requested by
Administrative Agent has delivered to Administrative Agent, delivery receipts evidencing such delivery;

 

(b)          it
(i) is subject to a perfected, first priority Lien in favor of Administrative Agent and (ii) is not subject to any other
assignment, claim or Lien;

 

(c)          it
is a valid, legally enforceable and unconditional obligation of the Account Debtor with respect thereto, and is not subject to
the fulfillment of any condition whatsoever or any counterclaim, credit, allowance, discount, rebate or adjustment by the Account
Debtor with respect thereto (but such Account shall only be excluded to the extent of such credit, allowance, discount, rebate
or adjustment if applicable), or to any claim by such Account Debtor denying liability thereunder (but such Account shall only
be excluded to the extent of such denied amount) and the Account Debtor has not refused to accept and/or has not returned or offered
to return any of the goods or services which are the subject of such Account;

 

(d)          there
is no bankruptcy, insolvency or liquidation proceeding pending by or against the Account Debtor with respect thereto;

 

(e)          the
Account Debtor with respect thereto is a resident or citizen of, and is located within, the United States or Canada, unless the
sale of goods or services giving rise to such Account is on letter of credit, banker’s acceptance, subject to a credit insurance
policy acceptable to Administrative Agent issued by an insurer acceptable to Administrative Agent, or other credit support terms
reasonably satisfactory to Administrative Agent;

 

(f)          it
is not an Account arising from a “sale on approval,” “sale or return,” “consignment” or “bill
and hold” or subject to any other repurchase or return agreement;

 

(g)          it
is not an Account with respect to which possession and/or control of the goods sold giving rise thereto is held, maintained or
retained by Borrower (or by any agent or custodian of Borrower) for the account of or subject to further and/or future direction
from the Account Debtor with respect thereto;

 

(h)          it
arises in the ordinary course of business of Borrower;

 

(i)          if
the Account Debtor is the United States or any department, agency or instrumentality thereof, Borrower has assigned its right to
payment of such Account to Administrative Agent pursuant to the Assignment of Claims Act of 1940, and evidence (satisfactory to
Administrative Agent) of such assignment has been delivered to Administrative Agent;

 

    	10

    	 

    

 

(j)          if
Borrower maintains a credit limit for an Account Debtor, the aggregate dollar amount of Accounts due from such Account Debtor,
including such Account, does not exceed such credit limit;

 

(k)          if
the Account is evidenced by chattel paper or an instrument, the originals of such chattel paper or instrument shall have been endorsed
and/or assigned and delivered to Administrative Agent or, in the case of electronic chattel paper, shall be in the control of Administrative
Agent, in each case in a manner satisfactory to Administrative Agent;

 

(l)          such
Account is evidenced by an invoice delivered to the related Account Debtor and is not more than (i) sixty (60) days past the
due date thereof or (ii) ninety (90) days past the original invoice date thereof, in each case according to the original terms
of sale;

 

(m)          it
is not an Account with respect to an Account Debtor that is located in any jurisdiction which has adopted a statute or other requirement
with respect to which any Person that obtains business from within such jurisdiction must file a notice of business activities
report or make any other required filings in a timely manner in order to enforce its claims in such jurisdiction’s courts
unless (i) such notice of business activities report has been duly and timely filed or Borrower is exempt from filing such
report and has provided Administrative Agent with satisfactory evidence of such exemption or (ii) the failure to make such
filings may be cured retroactively by Borrower for a nominal fee;

 

(n)          the
Account Debtor with respect thereto is not Borrower or an Affiliate of Borrower;

 

(o)          it
is not owed by an Account Debtor with respect to which 25% or more of the aggregate amount of outstanding Accounts owed at such
time by such Account Debtor is classified as ineligible under clause (l) of this definition;

 

(p)          if
the aggregate amount of all Accounts owed by the Account Debtor thereon exceeds 25% (or 30% solely with respect to Accounts owed
by LC Industries, Inc.) of the aggregate amount of all Accounts at such time, then all Accounts owed by such Account Debtor in
excess of such amount shall be deemed ineligible; and

 

(q)          it
is otherwise not unacceptable to Administrative Agent in its reasonable discretion for any other reason.

 

An Account which is at any time an Eligible
Account, but which subsequently fails to meet any of the foregoing requirements, shall forthwith cease to be an Eligible Account.
Further, with respect to any Account, if Administrative Agent or the Required Lenders at any time hereafter determine in its or
their reasonable discretion that the prospect of payment or performance by the Account Debtor with respect thereto is materially
impaired for any reason whatsoever, such Account shall cease to be an Eligible Account after notice of such determination is given
to Borrower. Notwithstanding the foregoing, solely for purposes of this definition, Borrower shall not include Holdings.

 

    	11

    	 

    

 

“Eligible Assignee”
means a commercial bank or an Affiliate thereof.

 

“Eligible Inventory”
means Inventory of Borrower which meets each of the following requirements:

 

(a)          it
(i) is subject to a perfected, first priority Lien in favor of Administrative Agent and (ii) is not subject to any other
assignment, claim or Lien;

 

(b)          it
is salable and not slow-moving, obsolete or discontinued;

 

(c)          it
is in the possession and control of Borrower and it is stored and held in facilities owned by Borrower or, if such facilities are
not so owned, Administrative Agent (i) is in possession of a Collateral Access Agreement with respect thereto or (ii) has
established reserves against Revolving Loan Availability with respect thereto that Administrative Agent reasonably deems appropriate;

 

(d)          it
is not Inventory produced in violation of the Fair Labor Standards Act and subject to the “hot goods” provisions contained
in Title 29 U.S.C. §215;

 

(e)          it
is not subject to any agreement or license which would restrict Administrative Agent’s ability to sell or otherwise dispose
of such Inventory;

 

(f)          it
is located in the United States or in any territory or possession of the United States that has adopted Article 9 of the Uniform
Commercial Code;

 

(g)          it
is not “in transit” to Borrower or held by Borrower on consignment;

 

(h)          it
is not “work-in-progress” Inventory and is “finished goods” Inventory, provided, however, that raw materials
may be included in the calculation of Eligible Inventory;

 

(i)          it
is not supply items or packaging;

 

(j)          it
is not identified to any purchase order or contract to the extent progress or advance payments are received with respect to such
Inventory;

 

(k)          it
does not breach any of the representations, warranties or covenants pertaining to Inventory set forth in the Loan Documents; and

 

(l)          Administrative
Agent shall not have determined in its reasonable discretion that it is unacceptable due to age, type, category, quality, quantity
and/or any other reason whatsoever.

 

    	12

    	 

    

 

Inventory which is at any time Eligible Inventory
but which subsequently fails to meet any of the foregoing requirements shall forthwith cease to be Eligible Inventory. Notwithstanding
the foregoing, solely for purposes of this definition, Borrower shall not include Holdings.

 

“Environmental
Claims” means all claims, however asserted, by any governmental, regulatory, or judicial authority or other Person alleging
any potential liability or responsibility, contingent or otherwise (including for damages, losses, punitive damages, consequential
damages, costs of environmental investigation and remediation, fines, penalties, indemnities or expenses) or other obligation,
directly or indirectly resulting from or based upon (a) violation of or pursuant to any Environmental Law, (b) the generation,
use, handling, transportation, storage, treatment or disposal of any Hazardous Substances, (c) exposure to any Hazardous Substances,
(d) the release or threatened release of any Hazardous Substances into the environment or (e) any contract, agreement
or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing.

 

“Environmental
Laws” means the Comprehensive Environmental Response, Compensation and Liability Act (42 U.S.C. § 9601, et
seq.), the Hazardous Materials Transportation Act (49 U.S.C. § 5101, et seq.), the Resource Conservation
and Recovery Act (42 U.S.C. § 6901, et seq.), the Federal Clean Water Act (33 U.S.C. § 1251 et
seq.), the Clean Air Act (42 U.S.C. § 7401 et seq.), the Toxic Substances Control Act (15 U.S.C.
§ 2601 et seq.), the Safe Drinking Water Act (42 U.S.C. § 300f to 300j-26 et seq.),
the Oil Pollution Act of 1990 (33 U.S.C. § 2701 et seq.) and the Occupational Safety and Health Act (29
U.S.C. § 651 et seq.), and any other present or future federal, state, local, foreign and other applicable
statutes, laws, regulations, ordinances, rules, judgments, orders, decrees, permits, concessions, grants, franchises, licenses,
agreements or governmental restrictions and common law relating to pollution, the protection of the environment, natural resources,
human health or the release of any Hazardous Substances into the environment, including indoor and outdoor air, soil, groundwater,
surface water, storm water, wetlands, sediment and discharges of wastewater to public treatment systems, all as may be amended
or otherwise modified from time to time.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974.

 

“Event of Default”
means any of the events described in Section 13.1.

 

“Excess Cash Flow”
means, for any period, (a) EBITDA for such period, minus (b) the sum, without duplication, of (i) scheduled
repayments of principal of Term Loans made pursuant to Section 6.4 during such period, plus (ii) voluntary prepayments
of the Term Loans pursuant to Section 6.2.1 during such period, plus (iii) cash payments made in such period with respect
to Capital Expenditures, plus (iv) all income taxes paid in cash by the Loan Parties during such period net of refunds actually
received in cash, plus (v) cash Interest Expense of the Loan Parties during such period, plus (vi) reasonable out-of-pocket
legal costs, fees and expenses paid to counsel to Borrower in cash during such period in connection with amendments or modifications
of the Loan Documents in an aggregate amount not to exceed $25,000 per Fiscal Year and out-of-pocket legal costs, fees and expenses
paid to counsel to Administrative Agent in cash during such period in connection with amendments or modifications of the Loan Documents,
plus (vii) amendment, waiver or forbearance fees paid in cash during such period to, and charged by, the Administrative Agent
or any Lender in connection with any amendment to the Loan Documents, plus (viii) transaction fees and expenses paid in cash during
such period in connection with the consummation of the transactions contemplated by this Agreement not to exceed $1,920,144 in
the aggregate, plus (ix) board of director fees and expenses paid or payable (to the extent permitted to be paid hereunder)
in an aggregate amount not to exceed $25,000 per Fiscal Year, provided, however, that all such fees and expenses
shall be paid within sixty (60) days after the Closing Date.

 

    	13

    	 

    

 

“Excluded Asset
Disposition” means the following dispositions by a Loan Party: (a) the sale or lease of inventory in the ordinary
course of business, (b) non-exclusive licenses of intellectual property of Borrower in the ordinary course of business for
aggregate consideration and having a fair market value of less than $500,000 in the aggregate in any Fiscal Year, provided, that
such license does not materially impair the value of such intellectual property as collateral for the Obligations, (c) dispositions
of equipment in the ordinary course of business that is worn, damaged or obsolete or, in the good faith judgment of a Loan Party,
no longer useful or necessary in the business of the Loan Parties, for aggregate consideration and having a fair market value of
less than $100,000 in the aggregate in any Fiscal Year, (d) sales, transfers and dispositions of assets among the Borrowers,
(e) the sale without recourse of accounts receivable constituting bad debts, but only in connection with the compromise or
collection thereof in the ordinary course of business (not as part of a bulk sale or receivables financing) and for aggregate consideration
and having a fair market value of less than $100,000 in the aggregate in any Fiscal Year, (f) liquidation of Cash Equivalent
Investments into cash in the ordinary course of business, and (g) other dispositions for aggregate consideration and having
a fair market value of less than $100,000 in the aggregate in any Fiscal Year.

 

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

 

“Excluded Taxes”
means Taxes based upon, or measured by, a Lender’s or Administrative Agent’s (or a branch of a Lender’s or Administrative
Agent’s) overall net income, overall net receipts, or overall net profits (including franchise Taxes imposed in lieu of such
Taxes), but only to the extent such Taxes are imposed by a taxing authority (a) in a jurisdiction in which such Lender or
Administrative Agent is organized, (b) in a jurisdiction which a Lender’s or Administrative Agent’s principal
office is located, or (c) in a jurisdiction in which such Lender’s or Administrative Agent’s lending office (or
branch) in respect of which payments under this Agreement are made is located.

 

    	14

    	 

    

 

“Extraordinary
Receipts” means any cash received by or paid to or for the account of any Loan Party not in the ordinary course of business,
including without limitation, amounts received in respect of indemnity obligations of a seller under any purchase or acquisition
document, foreign, United States, state or local Tax refunds to the extent not included in the calculation of EBITDA and pension
plan reversions.

 

“Facilities”
means, at any time, the facilities or real properties owned, leased, managed or operated by any Loan Party.

 

“Federal Funds
Rate” means, for any day, a fluctuating interest rate equal for each day during such period to the weighted average of
the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers,
as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank
of New York, or, if such rate is not so published for any day which is a Business Day, the average of the quotations for such day
on such transactions received by Administrative Agent from three Federal funds brokers of recognized standing selected by Administrative
Agent. Administrative Agent’s determination of such rate shall be binding and conclusive absent manifest error.

 

“Fiscal Quarter”
means a fiscal quarter of a Fiscal Year.

 

“Fiscal Year”
means the fiscal year of Holdings and its Subsidiaries, which period shall be the 12-month period ending on December 31 of each
year.

 

“Fixed Charge
Coverage Ratio” means, for any Computation Period, the ratio of (a) the total for such period of EBITDA minus the
sum of (i) income taxes paid in cash by Holdings and its Subsidiaries plus (ii) all Unfinanced Capital Expenditures to (b) the
sum for such period of (i) cash Interest Expense plus (ii) required payments of principal of Funded Debt (including the
Term Loans but excluding the Revolving Loans) of Holdings and its Subsidiaries plus (iii) management fees paid in cash. Notwithstanding
the foregoing, clauses (b)(i) and (b)(ii) above (collectively, the "Applicable Items") shall be calculated as
follows solely for each of the following Computation Periods:

 

		(A)	for the Computation Period ending on May 31, 2015, each
Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on May 31, 2015
multiplied by twelve (12);

 

		(B)	for the Computation Period ending on June 30, 2015, each
Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on June 30,
2015 multiplied by six (6);

 

		(C)	for the Computation Period ending on July 31, 2015, each
Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on July 31,
2015 multiplied by four (4);

 

		(D)	for the Computation Period ending on August 31, 2015, each
Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on August 31,
2015 multiplied by three (3);

 

    	15

    	 

    

 

		(E)	for the Computation Period ending on September 30, 2015,
each Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on September
30, 2015 multiplied by two and two-fifths (2 2/5);

 

		(F)	for the Computation Period ending on October 31, 2015,
each Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on October
31, 2015 multiplied by two (2);

 

		(G)	for the Computation Period ending on November 30, 2015,
each Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on November
30, 2015 multiplied by the quotient of twelve (12) divided by seven (7);

 

		(H)	for the Computation Period ending on December 31, 2015,
each Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on December
31, 2015 multiplied by one and one-half (1 1/2);

 

		(I)	for the Computation Period ending on January 31, 2016,
each Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on January
31, 2016 multiplied by one and one-third (1 1/3);

 

		(J)	for the Computation Period ending on February 29, 2016,
each Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on February
29, 2016 multiplied by one and one-fifth (1 1/5); and

 

		(K)	for the Computation Period ending on March 31, 2016, each
Applicable Item shall be calculated as: actual Applicable Item for the period beginning on May 1, 2015 and ending on March 31,
2016 multiplied by the quotient of twelve (12) divided by eleven (11).

 

“FRB”
means the Board of Governors of the Federal Reserve System or any successor thereto.

 

“Funded Debt”
means, as to any Person, all Debt of such Person that matures more than one year from the date of its creation (or is renewable
or extendible, at the option of such Person, to a date more than one year from such date).

 

“GAAP”
means generally accepted accounting principles in the United States set forth from time to time in the opinions and pronouncements
of the Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements
of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the
U.S. accounting profession), which are applicable to the circumstances as of the date of determination.

 

“Guaranty and
Collateral Agreement” means the Guaranty and Collateral Agreement dated as of the date hereof executed and delivered
by the Loan Parties, together with any joinders thereto and any other guaranty and collateral agreement executed by a Loan Party,
in each case in form and substance satisfactory to Administrative Agent.

 

    	16

    	 

    

 

“Hazardous Substances”
means all explosive or radioactive substances, materials or waste and all hazardous waste, hazardous substance, pollutant, contaminant,
toxic substance, oil, hazardous material, chemical or other substance regulated by any Environmental Law.

 

“Hedging Agreement”
means any bank underwritten cash and/or derivative financial instrument including, but not limited to, any interest rate, currency
or commodity swap agreement, cap agreement, collar agreement, spot foreign exchange, forward foreign exchange, foreign exchange
option (or series of options) and any other agreement or arrangement designed to protect a Person against fluctuations in interest
rates, currency exchange rates or commodity prices.

 

“Hedging Obligation”
means, with respect to any Person, any liability of such Person under any Hedging Agreement.

 

“Indemnified Liabilities”
is defined in Section 15.17.

 

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

 

“Interest Expense”
means for any period the consolidated interest expense of Holdings and its Subsidiaries for such period (including all imputed
interest on Capital Leases).

 

“Inventory”
is defined in the Guaranty and Collateral Agreement.

 

“Investment”
means, with respect to any Person, any investment in another Person, whether by acquisition of any debt or Capital Security, by
making any loan or advance, by becoming obligated with respect to a Contingent Liability in respect of obligations of such other
Person (other than travel and similar advances to employees in the ordinary course of business) or by making an Acquisition.

 

“Issuing Lender”
means any financial institution that Administrative Agent may cause to issue Letters of Credit for the account of Borrower, and
their successors and assigns in such capacity.

 

“Joint Liability
Payment” is defined in Section 16.6.

 

“L/C Application”
means, with respect to any request for the issuance of a Letter of Credit, a letter of credit application in the form being used
by an Issuing Lender at the time of such request for the type of letter of credit requested.

 

“L/C Fee Rate”
means the percentage per annum separately agreed to in writing by Borrower, Administrative Agent and any Lenders with Revolving
Commitments.

 

    	17

    	 

    

 

“Lender”
is defined in the preamble of this Agreement. References to the “Lenders” shall include the Issuing Lenders; for purposes
of clarification only, to the extent that Issuing Lender may have any rights or obligations in addition to those of the other Lenders
due to its status as Issuing Lender, its status as such will be specifically referenced. In addition to the foregoing, for the
purpose of identifying the Persons entitled to share in the Collateral and the proceeds thereof under, and in accordance with the
provisions of, this Agreement and the Collateral Documents, the term “Lender” shall include Affiliates of a Lender
providing a Bank Product.

 

“Lender Party”
is defined in Section 15.17.

 

“Letter of Credit”
is defined in Section 2.1.4.

 

“LIBOR Determination
Date” means, with respect to any LIBOR Loan, the first Business day of the month in which such LIBOR Loan is made and
the day that is two (2) Business Days prior to the first Business Day of each month occurring thereafter while such LIBOR Loan
is outstanding, or such other date as determined by Administrative Agent in its sole discretion.

 

“LIBOR Loan”
means any Loan which bears interest at a rate determined by reference to the LIBOR Rate.

 

“LIBOR Office”
means with respect to any Lender the office or offices of such Lender which shall be making or maintaining the LIBOR Loans of such
Lender hereunder. A LIBOR Office of any Lender may be, at the option of such Lender, either a domestic or foreign office.

 

“LIBOR Rate”
means the greater of (a) 1.00% per annum, and (b) a rate per annum equal to (i) LIBOR for a period equal to one (1) month as reported
in the Wall Street Journal (or other authoritative source selected by Administrative Agent in its sole discretion), on each
LIBOR Determination Date (each such period, an “Interest Period”) divided by (ii) a number determined by subtracting
from 1.00 the then stated maximum reserve percentage for determining reserves to be maintained by member banks of the Federal Reserve
System for Eurocurrency funding or liabilities as defined in Regulation D (or any successor category of liabilities under Regulation
D), or, to the extent LIBOR for a period equal to one (1) month is not reported in the Wall Street Journal or such source,
as LIBOR is otherwise determined by Administrative Agent in its sole and absolute discretion. Administrative Agent’s determination
of the LIBOR Rate shall be conclusive, absent manifest error.

 

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

 

“Loan Documents”
means this Agreement, the Notes, the Letters of Credit, the Master Letter of Credit Agreement, the L/C Applications, the Agent
Fee Letter, the SBIC Regulatory Side Letter, each Perfection Certificate, the Collateral Documents, the Subordination Agreements
and all documents, instruments and agreements delivered in connection with the foregoing.

 

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“Loan Party”
means Holdings, Borrower and each Subsidiary.

 

“Loan or Loans”
means, as the context may require, Revolving Loans and/or Term Loans.

 

“Mandatory Prepayment
Event” is defined in Section 6.2.2(a).

 

“Margin Stock”
means any “margin stock” as defined in Regulation U.

 

“Master Letter
of Credit Agreement” means, at any time, with respect to the issuance of Letters of Credit, a master letter of credit
agreement or reimbursement agreement in the form, if any, being used by an Issuing Lender at such time.

 

“Material Adverse
Effect” means (a) a material adverse change in, or a material adverse effect upon, the financial condition, operations,
assets, business or properties of the Loan Parties taken as a whole, (b) a material impairment of the ability of any Loan
Party to perform any of the Obligations under any Loan Document or (c) a material adverse effect upon any substantial portion
of the Collateral under the Collateral Documents or upon the legality, validity, binding effect or enforceability against any Loan
Party of any Loan Document.

 

“Minimum Availability”
means Revolving Loan Availability minus the Revolving Outstandings.

 

“Minimum Liquidity”
means, as of any date of determination, (a) Minimum Availability; plus (b) cash owned by Loan Parties as of such date (i)
that is held in deposit accounts over which the Administrative Agent has a first priority perfected Lien by virtue of “control”
(as defined in the UCC) of such accounts for its benefit and the benefit of the Lenders, and (ii) that is not subject to any Lien
other than a Lien in favor of Administrative Agent, for its benefit and the benefit of the Lenders.

 

“Monroe Capital”
is defined in the preamble of this Agreement.

 

“Mortgage”
means a mortgage, deed of trust, leasehold mortgage or similar instrument granting Administrative Agent a Lien on real property
of any Loan Party.

 

“Multiemployer
Pension Plan” means a multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which Holdings, Borrower
or any other member of the Controlled Group may have any liability.

 

“Net Cash Proceeds”
means:

 

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(a)          with
respect to any Asset Disposition, the aggregate cash proceeds (including cash proceeds received pursuant to policies of insurance
or by way of deferred payment of principal pursuant to a note, installment receivable or otherwise, but only as and when received)
received by any Loan Party pursuant to such Asset Disposition net of (i) the direct costs relating to such sale, transfer
or other disposition (including sales commissions and legal, accounting and investment banking fees), (ii) sale, value-added
or similar Taxes paid or reasonably estimated by Borrower to be payable as a result thereof (after taking into account any available
Tax credits or deductions and any Tax sharing arrangements) and (iii) amounts required to be applied to the repayment of any
Debt secured by a Lien on the asset subject to such Asset Disposition (other than the Loans);

 

(b)          with
respect to any issuance of Capital Securities or receipt of a capital contribution, the aggregate cash proceeds received by any
Loan Party pursuant to such issuance or contribution, net of the direct costs relating to such issuance or contribution (including
legal, accounting, investment banking and valuation fees, and sales and underwriters’ commissions); and

 

(c)          with
respect to any issuance of Debt, the aggregate cash proceeds received by any Loan Party pursuant to such issuance, net of the direct
costs of such issuance (including up-front, underwriters’, placement, legal, accounting and investment banking fees).

 

“Non-Consenting
Lender” is defined in Section 15.1.

 

“Non-U.S. Participant”
is defined in Section 7.6(d).

 

“Non-Use Fee Rate”
means 0.50% per annum.

 

“Note”
means a promissory note substantially in the form of Exhibit A.

 

“Notice of Borrowing”
is defined in Section 2.2.2.

 

“Obligations”
means all obligations (monetary (including post-petition interest, allowed or not) or otherwise) of any Loan Party under this Agreement
and any other Loan Document including Attorney Costs and any reimbursement obligations of each Loan Party in respect of Letters
of Credit and surety bonds, all Hedging Obligations permitted hereunder which are owed to any Lender (or its Affiliates) or Administrative
Agent, and all other Bank Product Obligations, all in each case howsoever created, arising or evidenced, whether direct or indirect,
absolute or contingent, now or hereafter existing, or due or to become due. Notwithstanding the foregoing, “Obligations”
shall not include any Excluded Swap Obligations.

 

“OFAC”
is defined in Section 9.25.

 

“Omniglow Settlement
Agreement” means that certain Confidential Settlement Agreement and Mutual Release dated as of July 10, 2014 among CTI,
Omniglow LLC, Randye M. Holland and Stanley M. Holland as Trustees of the Randye M. Holland and Stanley M. Holland Trust, Leemon
Family LLC and Ira Leemon, as amended by that certain Amendment to the Parties’ July 10, 2014 Confidential Settlement Agreement
and Mutual Release dated as of July 29, 2014.

 

    	20

    	 

    

 

“Omniglow Settlement
Payment” means the settlement payment required to be made by CTI pursuant to Section 3(b) of the Omniglow Settlement
Agreement in an aggregate amount not to exceed $1,900,000 due and payable on or before January 10, 2016.

 

“Operating Lease”
means any lease of (or other agreement conveying the right to use) any real or personal property by any Loan Party, as lessee,
other than any Capital Lease.

 

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

 

“Participant”
is defined in Section 15.6.2.

 

“Participant Register”
is defined in Section 15.6.2.

 

“Patriot Act”
is defined in Section 15.16.

 

“PBGC”
means the Pension Benefit Guaranty Corporation and any entity succeeding to any or all of its functions under ERISA.

 

“Pension Plan”
means a “pension plan”, as such term is defined in Section 3(2) of ERISA, which is subject to Title IV of ERISA
or the minimum funding standards of ERISA (other than a Multiemployer Pension Plan), and as to which Holdings, Borrower or any
member of the Controlled Group may have any liability, including any liability by reason of having been a substantial employer
within the meaning of Section 4063 of ERISA at any time during the preceding five years, or by reason of being deemed to be
a contributing sponsor under Section 4069 of ERISA.

 

“Perfection Certificate”
means a perfection certificate executed and delivered to Administrative Agent by a Loan Party.

 

“Permitted Lien”
means a Lien expressly permitted hereunder pursuant to Section 11.2.

 

“Person”
means any natural person, corporation, partnership, trust, limited liability company, association, governmental authority or unit,
or any other entity, whether acting in an individual, fiduciary or other capacity.

 

“Prime Rate”
means, for any day, the rate of interest in effect for such day equal to the prime rate in the United States as reported from time
to time in the Wall Street Journal (or other authoritative source selected by Administrative Agent in its sole discretion),
or, to the extent prime rate in the United States is not reported in the Wall Street Journal or such source, as Prime Rate
is otherwise determined by Administrative Agent in its sole and absolute discretion. Administrative Agent’s determination
of the Prime Rate shall be conclusive, absent manifest error. Any change in such rate of interest shall take effect at the opening
of business on the day of such change. In the event The Wall Street Journal (or such other authoritative source) publishes
a range of “prime rates”, the Prime Rate shall be the highest of the “prime rates”.

 

    	21

    	 

    

 

“Pro Rata Share”
means:

 

(a)          with respect
to a Lender’s obligation to make Revolving Loans, participate in Letters of Credit, reimburse the Issuing Lenders, and receive
payments of principal, interest, fees, costs, and expenses with respect thereto, (x) prior to the Revolving Commitment being
terminated or reduced to zero, the percentage obtained by dividing (i) such Lender’s Revolving Commitment, by (ii) the
aggregate Revolving Commitment of all Lenders and (y) from and after the time the Revolving Commitment has been terminated
or reduced to zero, the percentage obtained by dividing (i) the aggregate unpaid principal amount of such Lender’s Revolving
Outstandings by (ii) the aggregate unpaid principal amount of all Revolving Outstandings;

 

(b)          with
respect to a Lender’s obligation to make a Term A Loan and receive payments of interest, fees, and principal with respect
thereto, (x) prior to the making of the Term A Loans, the percentage obtained by dividing (i) such Lender’s Term A Loan
Commitment, by (ii) the aggregate amount of all Lenders’ Term A Loan Commitments, and (y) from and after the making
of the Term A Loans, the percentage obtained by dividing (i) the principal amount of such Lender’s Term A Loan by (ii) the
principal amount of all Term A Loans of all Lenders; and

 

(c)          with
respect to a Lender’s obligation to make a Delayed Draw Term Loan and receive payments of interest, fees, and principal with
respect thereto, (x) prior to the making of the Delayed Draw Term Loans, the percentage obtained by dividing (i) such Lender’s
Delayed Draw Term Loan Commitment, by (ii) the aggregate amount of all Lenders’ Delayed Draw Term Loan Commitments, and (y)
from and after the making of the Delayed Draw Term Loans, the percentage obtained by dividing (i) the principal amount of such
Lender’s Delayed Draw Term Loan by (ii) the principal amount of all Delayed Draw Term Loans of all Lenders; and

 

(d)          with respect to all other matters as to a particular Lender, the percentage obtained by dividing (i) such Lender’s Revolving
Commitment plus such Lender’s Term A Loan Commitment plus such Lender’s Delayed Draw Term Loan Commitment, by (ii)
the aggregate amount of Revolving Commitment of all Lenders plus the Term A Loan Commitment of all Lenders plus the Delayed Draw
Term Loan Commitment of all Lenders; provided that in the event all Commitments have been terminated or reduced to zero, the Pro
Rata Share shall be the percentage obtained by dividing (a) the principal amount of such Lender’s Revolving Outstandings
plus the unpaid principal amount of such Lender’s Term A Loan plus the unpaid principal amount of such Lender’s Delayed
Draw Term Loan by (b) the principal amount of all outstanding Revolving Outstandings plus the unpaid principal amount of all Term
A Loans of all Lenders plus the unpaid principal amount of all Delayed Draw Term Loans of all Lenders.

 

    	22

    	 

    

 

“Real Estate Documents”
means, with respect to any owned real property of Loan Parties (other than a foreign Subsidiary that is a CFC), all of the following
(except to the extent waived by Administrative Agent in its sole discretion): (a) a duly executed Mortgage providing for a first
priority perfected Lien, in favor of Administrative Agent, in all right, title and interest of Borrower or such Subsidiary in such
real property; (b) an ALTA Loan Title Insurance Policy, issued by an insurer reasonably acceptable to Administrative Agent, insuring
Administrative Agent’s first priority Lien on such real property and containing such endorsements as Administrative Agent
may reasonably require (it being understood that the amount of coverage, exceptions to coverage and status of title set forth in
such policy shall be reasonably acceptable to Administrative Agent); (c) copies of all documents of record concerning such real
property as shown on the commitment for the ALTA Loan Title Insurance Policy referred to above; (d) original or certified copies
of all insurance policies required to be maintained with respect to such real property by this Agreement, the applicable Mortgage
or any other Loan Document; (e) a survey certified to Administrative Agent meeting such standards as Administrative Agent may reasonably
establish and otherwise reasonably satisfactory to Administrative Agent; and (f) a flood insurance policy concerning such real
property, if required by the Flood Disaster Protection Act of 1973.

 

“Regulation D”
means Regulation D of the FRB.

 

“Regulation U”
means Regulation U of the FRB.

 

“Reportable Event”
means a reportable event as defined in Section 4043 of ERISA and the regulations issued thereunder as to which the PBGC has
not waived the notification requirement of Section 4043(a), or the failure of a Pension Plan to meet the minimum funding standards
of Section 412 of the Code (without regard to whether the Pension Plan is a plan described in Section 4021(a)(2) of ERISA)
or under Section 302 of ERISA.

 

“Required Lenders”
means, at any time, Lenders whose Pro Rata Shares exceed 66 2/3% as determined pursuant to clause (d) of the definition of “Pro
Rata Share”; provided that (i) the Pro Rata Shares held or deemed held by, any Defaulting Lender shall be excluded
for purposes of making a determination of Required Lenders, and (ii) at all times there are two (2) or fewer Lenders which are
not Affiliates of each other, Required Lenders shall require all such Lenders which are (x) not Affiliates of each other and (y)
not Defaulting Lenders.

 

“Revolving Commitment”
means, as to any Lender, such Lender’s commitment to make Revolving Loans, and to issue or participate in Letters of Credit,
under this Agreement. The initial amount of each Lender’s Revolving Commitment is set forth on Annex A. The initial aggregate
amount of the Revolving Commitments of all Lenders is $5,000,000.

 

“Revolving Loans”
is defined in Section 2.1.1.

 

“Revolving Loan
Availability” means the lesser of (i) the Revolving Commitments of all Lenders and (ii) the Borrowing Base.

 

“Revolving Outstandings”
means, at any time, the sum of (a) the aggregate principal amount of all outstanding Revolving Loans, plus (b) the Stated
Amount of all Letters of Credit.

 

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“SBIC Regulatory
Side Letter” means that certain letter agreement dated as of even date herewith among Borrower and Administrative Agent.

 

“SEC”
means the Securities and Exchange Commission or any other governmental authority succeeding to any of the principal functions thereof.

 

“Senior Debt”
means all Debt of Holdings and its Subsidiaries other than Subordinated Debt.

 

“Senior Debt to
EBITDA Ratio” means, as of the last day of any month, the ratio of (i) Senior Debt as of such day to (ii) EBITDA for
the Computation Period ending on such day.

 

“Senior Officer”
means, with respect to any Loan Party, any of the president, the chief executive officer, the chief financial officer or the treasurer
of such Loan Party.

 

“Stated Amount”
means, with respect to any Letter of Credit at any date of determination, (a) the maximum aggregate amount available for drawing
thereunder under any and all circumstances plus (b) the aggregate amount of all unreimbursed payments and disbursements under
such Letter of Credit.

 

“Subordinated
Debt” means (a) the Colon Debt, and (b) any other unsecured Debt of Holdings and its Subsidiaries which has subordination
terms, covenants, pricing and other terms which have been approved in writing by the Administrative Agent.

 

“Subordination
Agreements” means all subordination agreements executed by a holder of Subordinated Debt in favor of Administrative Agent
and the Lenders from time to time on or after the Closing Date in form and substance and on terms and conditions satisfactory to
Administrative Agent.

 

“Subsidiary”
means, with respect to any Person, a corporation, partnership, limited liability company or other entity of which such Person owns,
directly or indirectly, such number of outstanding Capital Securities as have more than 50% of the ordinary voting power for the
election of directors or other managers of such corporation, partnership, limited liability company or other entity. Unless the
context otherwise requires, each reference to Subsidiaries herein shall be a reference to Subsidiaries of Holdings.

 

“Swap Obligation”
means any Hedging Obligation that constitutes a “swap” within the meaning of Section 1a(47) of the Commodity Exchange
Act, as amended from time to time.

 

“Taxes”
means any and all present and future taxes, duties, levies, imposts, deductions, assessments, charges or withholdings, and any
and all liabilities (including interest and penalties and other additions to taxes) with respect to the foregoing.

 

“Term A Loan Commitment”
means, as to any Lender, such Lender’s commitment to make Term A Loans under this Agreement. The amount of each Lender’s
Term A Loan Commitment is set forth on Annex A. The aggregate amount of the Term A Loan Commitments of all Lenders is $18,000,000.

 

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“Term A Loan”
is defined in Section 2.1.2.

 

“Term Loans”
means, collectively, the Term A Loans and the Delayed Draw Term Loans.

 

“Term Loan Maturity
Date” means the earlier of (a) May 18, 2020, or (b) the Termination Date.

 

“Termination Date”
means the earlier to occur of (a) May 18, 2020, or (b) such other date on which the Commitments terminate pursuant to Section 6
or Section 13.

 

“Termination Event”
means, with respect to a Pension Plan that is subject to Title IV of ERISA, (a) a Reportable Event, (b) the withdrawal
of Holdings, Borrower or any other member of the Controlled Group from such Pension Plan during a plan year in which Holdings,
Borrower or any other member of the Controlled Group was a “substantial employer” as defined in Section 4001(a)(2)
of ERISA or was deemed such under Section 4068(f) of ERISA, (c) the termination of such Pension Plan, the filing of a
notice of intent to terminate the Pension Plan or the treatment of an amendment of such Pension Plan as a termination under Section 4041
of ERISA, (d) the institution by the PBGC of proceedings to terminate such Pension Plan or (e) any event or condition
that might constitute grounds under Section 4042 of ERISA for the termination of, or appointment of a trustee to administer,
such Pension Plan.

 

“Total Plan Liability”
means, at any time, the present value of all vested and unvested accrued benefits under all Pension Plans, determined as of the
then most recent valuation date for each Pension Plan, using PBGC actuarial assumptions for single employer plan terminations.

 

“UCC”
is defined in the Guaranty and Collateral Agreement.

 

“Unfinanced Capital
Expenditures” shall mean all Capital Expenditures of Holdings and its Subsidiaries, other than those made utilizing financing
provided by the applicable seller or third party lenders. For the avoidance of doubt, Capital Expenditures made by Holdings and
its Subsidiaries utilizing Revolving Loans or other Obligations shall be deemed Unfinanced Capital Expenditures.

 

“Unfunded Liability”
means the amount (if any) by which the present value of all vested and unvested accrued benefits under all Pension Plans exceeds
the fair market value of all assets allocable to those benefits, all determined as of the then most recent valuation date for each
Pension Plan, using PBGC actuarial assumptions for single employer plan terminations.

 

“Withholding Certificate”
is defined in Section 7.6(d).

 

“Wholly-Owned
Subsidiary” means, as to any Person, a Subsidiary all of the Capital Securities of which (except directors’ qualifying
Capital Securities as required by applicable law) are at the time directly or indirectly owned by such Person and/or another Wholly-Owned
Subsidiary of such Person. Unless the context otherwise requires, each reference to Wholly-Owned Subsidiaries shall be a reference
to Wholly-Owned Subsidiaries of Holdings.

 

    	25

    	 

    

 

1.2          Other
Interpretive Provisions. (a) The meanings of defined terms are equally applicable to the singular and plural forms of
the defined terms.

 

(b)          Section,
Annex, Schedule and Exhibit references are to this Agreement unless otherwise specified.

 

(c)          The
term “including” is not limiting and means “including without limitation.”

 

(d)          In
the computation of periods of time from a specified date to a later specified date, the word “from” means “from
and including”; the words “to” and “until” each mean “to but excluding”, and the word
“through” means “to and including.”

 

(e)          Unless
otherwise expressly provided herein, (i) references to agreements (including this Agreement and the other Loan Documents)
and other contractual instruments shall be deemed to include all subsequent amendments, restatements, supplements and other modifications
thereto, but only to the extent such amendments, restatements, supplements and other modifications are not prohibited by the terms
of any Loan Document, and (ii) references to any statute or regulation shall be construed as including all statutory and regulatory
provisions amending, replacing, supplementing or interpreting such statute or regulation.

 

(f)          This
Agreement and the other Loan Documents may use several different limitations, tests or measurements to regulate the same or similar
matters. All such limitations, tests and measurements are cumulative and each shall be performed in accordance with its terms.

 

(g)          This
Agreement and the other Loan Documents are the result of negotiations among and have been reviewed by counsel to Administrative
Agent, Borrower, the Lenders and the other parties thereto and are the products of all parties. Accordingly, they shall not be
construed against Administrative Agent or the Lenders merely because of Administrative Agent’s or Lenders’ involvement
in their preparation.

 

Section 2COMMITMENTS
OF THE LENDERS; BORROWING, CONVERSION AND LETTER OF CREDIT PROCEDURES.

 

2.1          Commitments.
On and subject to the terms and conditions of this Agreement, each of the Lenders, severally and for itself alone, agrees to make
loans to, and to issue or participate in letters of credit for the account of, Borrower as follows:

 

2.1.1           Revolving
Commitment. Each Lender with a Revolving Commitment agrees to make loans on a revolving basis (“Revolving Loans”)
from time to time until the Termination Date in such Lender’s Pro Rata Share of such aggregate amounts as Borrower Representative
may request from all Lenders; provided that the Revolving Outstandings will not at any time exceed Revolving Loan Availability.

 

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2.1.2           Term
A Loan Commitment. Each Lender with a Term A Loan Commitment agrees to make a loan to Borrower (each such loan, a “Term
A Loan”) on the Closing Date in such Lender’s Pro Rata Share of the aggregate amount of the Term A Loan Commitments
of all Lenders. The Commitments of the Lenders to make Term A Loans shall expire concurrently with the making of the Term A Loans
on the Closing Date. Amounts repaid or prepaid with respect to Term A Loans may not be re-borrowed.

 

2.1.3           Delayed
Draw Term Loan Commitment. Each Lender with a Delayed Draw Term Loan Commitment agrees to make a loan to Borrower (each such
loan, a “Delayed Draw Term Loan”) on the Delayed Draw Term Loan Funding Date in such Lender’s Pro Rata
Share of the Delayed Draw Term Loan Commitments of all Lenders to the extent of the aggregate amount requested by Borrower Representative;
provided that (i) the total Delayed Draw Term Loan Funded Amount of all Lenders with a Delayed Draw Term Loan Commitment
shall not exceed the total Delayed Draw Term Loan Commitments, and (ii) the Delayed Draw Term Loan Funded Amount of each Lender
with a Delayed Draw Term Loan Commitment shall not exceed such Lender’s Delayed Draw Term Loan Commitment. Borrower shall
use all of the proceeds of the Delayed Draw Term Loans solely to pay the Omniglow Settlement Payment (and any reasonable, out-of-pocket
and documented fees, costs and expenses related thereto) on the Delayed Draw Term Loan Funding Date. The Delayed Draw Term Loan
Commitments of the Lenders with a Delayed Draw Term Loan Commitment shall reduce to zero automatically on the earlier of (i) the
Delayed Draw Term Loan Commitment Expiration Date, or (ii) the making of any Delayed Draw Term Loan. Amounts repaid or prepaid
on Delayed Draw Term Loans may not be re-borrowed.

 

2.1.4           L/C
Commitment. Subject to Section 2.3.1, each Issuing Lender agrees to issue letters of credit, in each case containing
such terms and conditions as are permitted by this Agreement and are reasonably satisfactory to such Issuing Lender (each, a “Letter
of Credit”), at the request of and for the account of Borrower from time to time before the scheduled Termination Date
and, as more fully set forth in Section 2.3.2, each Lender with a Revolving Commitment agrees to purchase a participation
in each such Letter of Credit; provided that (a) the aggregate Stated Amount of all Letters of Credit shall not at
any time exceed $0 and (b) the Revolving Outstandings shall not at any time exceed Revolving Loan Availability.

 

2.2           Loan
Procedures.

 

2.2.1           Various
Types of Loans. Each Loan shall be a LIBOR Loan, subject to Section 8 below. All borrowings, conversions, and repayments
of Loans shall be effected so that each Lender will have a ratable share (according to its Pro Rata Share) of all Loans.

 

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2.2.2           Borrowing
Procedures.

 

(a)          Borrower
Representative shall give written notice (each such written notice, a “Notice of Borrowing”) substantially in
the form of Exhibit E or telephonic notice (followed immediately by a Notice of Borrowing) to Administrative Agent
and each Lender with a Revolving Commitment of each proposed borrowing of a Revolving Loan not later than 10:00 a.m., Chicago
time, at least five (5) Business Days (or such shorter time period as agreed to by all Lenders with Revolving Commitments
in their sole discretion) prior to the proposed date of such borrowing. Each such notice shall be effective upon receipt by such
Lender with a Revolving Commitment, shall be irrevocable, and shall specify the date, amount and type of borrowing. On the requested
borrowing date, each Lender with a Revolving Commitment shall provide Borrower with immediately available funds covering such Lender’s
Pro Rata Share of such borrowing so long as the applicable Lender has not received written notice that the conditions precedent
set forth in Section 12 with respect to such borrowing have not been satisfied. Each borrowing shall be on a Business
Day. Each such borrowing shall be in an aggregate amount of at least $400,000 and an integral multiple of $50,000; provided,
that if Minimum Availability is less than $400,000, borrowings shall be permitted in an amount equal to, but not less than, Minimum
Availability. Each Lender with a Revolving Commitment hereby agrees, upon request of Administrative Agent, to deliver to Administrative
Agent a list of all Revolving Loans made by such Lender, together with such information related thereto as Administrative Agent
may reasonably request.

 

(b)          Borrower
Representative shall give a Notice of Borrowing substantially in the form of Exhibit E or telephonic notice (followed
immediately by a Notice of Borrowing) to Administrative Agent and each Lender with a Delayed Draw Term Loan Commitment of a proposed
borrowing of a Delayed Draw Term Loan not later than 10:00 a.m., Chicago time, at least five (5) Business Days (or such
shorter time period as agreed to by Administrative Agent in its sole discretion) prior to the proposed date of such borrowing.
Each such notice shall be effective upon receipt by Administrative Agent, shall be irrevocable, and shall specify the date, amount
and type of borrowing. Promptly upon receipt of such notice, Administrative Agent shall advise each Lender thereof. Not later than
10:00 a.m., Chicago time, on the date of the proposed borrowing, each Lender with a Delayed Draw Term Loan Commitment shall
provide Administrative Agent with immediately available funds covering such Lender’s Pro Rata Share of such borrowing and,
so long as Administrative Agent has not received written notice that the conditions precedent set forth in Section 12
with respect to such borrowing have not been satisfied, Administrative Agent shall pay over the funds received by Administrative
Agent to Borrower on the requested borrowing date. The borrowing shall be on a Business Day. Borrower shall only be entitled to
borrow Delayed Draw Term Loans on the Delayed Draw Term Loan Funding Date, and shall not be entitled to make more than one (1)
borrowing of Delayed Draw Term Loans.

 

(c)          Unless
payment is otherwise timely made by Borrower, the becoming due of any Obligations (whether principal, interest, fees or other charges)
shall be deemed to be a request for a borrowing of a Revolving Loan on the due date, in the amount of such Obligations. The proceeds
of such Revolving Loans shall be disbursed as direct payment of the relevant Obligation. In addition, Administrative Agent may,
at its option, charge any such Obligations against any operating, investment or other account of Borrower maintained with Administrative
Agent or any of its Affiliates.

 

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2.3           Letter
of Credit Procedures.

 

2.3.1           L/C
Applications. Borrower shall execute and deliver to each Issuing Lender each Master Letter of Credit Agreement from time to
time in effect with respect to such Issuing Lender. Borrower Representative shall give notice to Administrative Agent and the applicable
Issuing Lender of the proposed issuance of each Letter of Credit on a Business Day which is at least three (3) Business Days (or
such lesser number of days as Administrative Agent and such Issuing Lender shall agree in any particular instance in their sole
discretion) prior to the proposed date of issuance of such Letter of Credit. Each such notice shall be accompanied by an L/C Application,
duly executed by Borrower and in all respects reasonably satisfactory to Administrative Agent and the applicable Issuing Lender,
together with such other documentation as Administrative Agent or such Issuing Lender may request in support thereof, it being
understood that each L/C Application shall specify, among other things, the date on which the proposed Letter of Credit is to be
issued, the expiration date of such Letter of Credit (which shall not be later than the scheduled Termination Date (unless such
Letter of Credit is Cash Collateralized)) and whether such Letter of Credit is to be transferable in whole or in part. Any Letter
of Credit outstanding after the scheduled Termination Date which is Cash Collateralized for the benefit of an Issuing Lender shall
be the sole responsibility of such Issuing Lender. So long as the applicable Issuing Lender has not received written notice that
the conditions precedent set forth in Section 12 with respect to the issuance of such Letter of Credit have not been
satisfied, such Issuing Lender shall issue such Letter of Credit on the requested issuance date. Each Issuing Lender shall promptly
advise Administrative Agent of the issuance of each Letter of Credit and of any amendment thereto, extension thereof or event or
circumstance changing the amount available for drawing thereunder. In the event of any inconsistency between the terms of any Master
Letter of Credit Agreement, any L/C Application and the terms of this Agreement, the terms of this Agreement shall control.

 

2.3.2           Participations
in Letters of Credit. Concurrently with the issuance of each Letter of Credit, the applicable Issuing Lender shall be deemed
to have sold and transferred to each Lender with a Revolving Commitment, and each such Lender shall be deemed irrevocably and unconditionally
to have purchased and received from such Issuing Lender, without recourse or warranty, an undivided interest and participation,
to the extent of such Lender’s Pro Rata Share, in such Letter of Credit and Borrower’s reimbursement obligations with
respect thereto. If Borrower does not pay any reimbursement obligation when due, Borrower shall be deemed to have immediately requested
that the Lenders with Revolving Commitments make a Revolving Loan in a principal amount equal to such reimbursement obligations.
Administrative Agent shall promptly notify such Lenders of such deemed request and, without the necessity of compliance with the
requirements of Section 2.2.2, Section 12.2 or otherwise such Lender shall make available to the applicable
Issuing Lender its Pro Rata Share of such Loan for the account of Borrower in satisfaction of such reimbursement obligations. For
the purposes of this Agreement, the unparticipated portion of each Letter of Credit shall be deemed to be the applicable Issuing
Lender’s “participation” therein. Each Issuing Lender hereby agrees, upon request of Administrative Agent or
any Lender, to deliver to Administrative Agent or such Lender a list of all Letters of Credit issued by such Issuing Lender, together
with such information related thereto as Administrative Agent or such Lender may reasonably request.

 

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2.3.3           Reimbursement
Obligations. (a) Borrower hereby unconditionally and irrevocably agrees to reimburse each Issuing Lender for each payment
or disbursement made by such Issuing Lender under any Letter of Credit honoring any demand for payment made by the beneficiary
thereunder, in each case on the date that such payment or disbursement is made. Any amount not reimbursed on the date of such payment
or disbursement shall bear interest from the date of such payment or disbursement to the date that the applicable Issuing Lender
is reimbursed by Borrower therefor, payable on demand, at a rate per annum equal to the Base Rate from time to time in effect plus
the Applicable Margin for Revolving Loans that are Base Rate Loans plus, beginning on the third Business Day after receipt
of notice from such Issuing Lender of such payment or disbursement, 2%. Each Issuing Lender shall notify Borrower and Administrative
Agent whenever any demand for payment is made under any Letter of Credit by the beneficiary thereunder; provided that the
failure of an Issuing Lender to so notify Borrower or Administrative Agent shall not affect the rights of such Issuing Lender or
the Lenders in any manner whatsoever.

 

(a)          Borrower’s
reimbursement obligations hereunder shall be irrevocable and unconditional under all circumstances, including (a) any lack
of validity or enforceability of any Letter of Credit, this Agreement or any other Loan Document, (b) the existence of any
claim, set-off, defense or other right which any Loan Party may have at any time against a beneficiary named in a Letter of Credit,
any transferee of any Letter of Credit (or any Person for whom any such transferee may be acting), Administrative Agent, the Issuing
Lenders, any Lender or any other Person, whether in connection with any Letter of Credit, this Agreement, any other Loan Document,
the transactions contemplated herein or any unrelated transactions (including any underlying transaction between any Loan Party
and the beneficiary named in any Letter of Credit), (c) the validity, sufficiency or genuineness of any document which an
Issuing Lender has determined complies on its face with the terms of the applicable Letter of Credit, even if such document should
later prove to have been forged, fraudulent, invalid or insufficient in any respect or any statement therein shall have been untrue
or inaccurate in any respect, or (d) the surrender or impairment of any security for the performance or observance of any
of the terms hereof. Without limiting the foregoing, no action or omission whatsoever by Administrative Agent or any Lender (excluding
any Lender in its capacity as an Issuing Lender) under or in connection with any Letter of Credit or any related matters shall
result in any liability of Administrative Agent or any Lender to Borrower, or relieve Borrower of any of its obligations hereunder
to any such Person.

 

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2.3.4           Funding
by Lenders to Issuing Lender. If any Issuing Lender makes any payment or disbursement under any Letter of Credit and (a) Borrower
has not reimbursed such Issuing Lender in full for such payment or disbursement by 10:00 A.M., Chicago time, on the date of such
payment or disbursement, (b) a Revolving Loan may not be made in accordance with Section 2.3.2 or (c) any
reimbursement received by such Issuing Lender from Borrower is or must be returned or rescinded upon or during any bankruptcy or
reorganization of Borrower or otherwise, each other Lender with a Revolving Commitment shall be obligated to pay to the applicable
Issuing Lender, in full or partial payment of the purchase price of its participation in such Letter of Credit, its Pro Rata Share
of such payment or disbursement (but no such payment shall diminish the obligations of Borrower under Section 2.3.3),
and, upon notice from such Issuing Lender, Administrative Agent shall promptly notify each other Lender thereof. Each other Lender
with a Revolving Commitment irrevocably and unconditionally agrees to so pay the applicable Issuing Lender in immediately available
funds the amount of such other Lender’s Pro Rata Share of such payment or disbursement. If and to the extent any such Lender
shall not have made such amount available to the applicable Issuing Lender by 2 p.m., Chicago time, on the Business Day on
which such Lender receives notice from Administrative Agent of such payment or disbursement (it being understood that any such
notice received after noon, Chicago time, on any Business Day shall be deemed to have been received on the next following Business
Day), such Lender agrees to pay interest on such amount to the applicable Issuing Lender forthwith on demand, for each day from
the date such amount was to have been delivered to the applicable Issuing Lender to the date such amount is paid, at a rate per
annum equal to (a) for the first three days after demand, the Federal Funds Rate from time to time in effect and (b) thereafter,
the Base Rate from time to time in effect. Any Lender’s failure to make available to the applicable Issuing Lender its Pro
Rata Share of any such payment or disbursement shall not relieve any other Lender of its obligation hereunder to make available
to the applicable Issuing Lender such other Lender’s Pro Rata Share of such payment, but no Lender shall be responsible for
the failure of any other Lender to make available to the applicable Issuing Lender such other Lender’s Pro Rata Share of
any such payment or disbursement.

 

2.4           Commitments
Several. The failure of any Lender to make a requested Loan on any date shall not relieve any other Lender of its obligation
(if any) to make a Loan on such date, but no Lender shall be responsible for the failure of any other Lender to make any Loan to
be made by such other Lender.

 

2.5           Certain
Conditions. Except as otherwise provided in Section 2.3.4 of this Agreement, no Lender shall have an obligation
to make any Loan, and no Issuing Lender shall have any obligation to issue any Letter of Credit, if an Event of Default or Default
exists.

 

2.6           Defaulting
Lenders. Notwithstanding any provision of this Agreement to the contrary, if any Lender becomes a Defaulting Lender, then the
following provisions shall apply for so long as such Lender is a Defaulting Lender:

 

2.6.1           fees
shall cease to accrue on the unfunded portion of the Revolving Commitment and Delayed Draw Term Loan Commitment of such Defaulting
Lender pursuant to Sections 5.1 and 5.4;

 

2.6.2           if
any Letters of Credit are outstanding at the time a Lender becomes a Defaulting Lender then:

 

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(a)          all
or any part of the Defaulting Lender’s obligation to participate in Letters of Credit shall be reallocated among the non-Defaulting
Lenders with Revolving Commitments in accordance with their respective Pro Rata Shares as determined pursuant to clause (a) of
the definition of “Pro Rata Share” but only to the extent (x) the sum of all non-Defaulting Lenders’ Revolving
Outstandings plus such Defaulting Lender’s obligation to participate in Letters of Credit does not exceed the total of all
non-Defaulting Lenders’ Commitments and (y) the conditions set forth in Section 12.2 are satisfied at such
time; and

 

(b)          if
the reallocation described in clause (a) above cannot, or can only partially, be effected, Borrower shall within one (1) Business
Day following notice by Administrative Agent Cash Collateralize such Defaulting Lender’s obligation to participate in Letters
of Credit (after giving effect to any partial reallocation pursuant to clause (a) above) in accordance with the procedures
set forth in Section 2.3.1 for so long as such obligation to participate in Letters of Credit is outstanding;

 

(c)          if
Borrower Cash Collateralizes any portion of such Defaulting Lender’s obligation to participate in Letters of Credit pursuant
to Section 2.6.2, Borrower shall not be required to pay any fees to such Defaulting Lender pursuant to Section 5.2
with respect to such Defaulting Lender’s obligation to participate in Letters of Credit during the period such Defaulting
Lender’s obligation to participate in Letters of Credit is Cash Collateralized;

 

(d)          if
the obligation to participate in Letters of Credit of the non-Defaulting Lenders is reallocated pursuant to Section 2.6.2,
then the fees payable to the Lenders pursuant to Section 5.1 and Section 5.2 shall be adjusted in accordance
with such non-Defaulting Lenders’ Pro Rata Shares (as determined pursuant to clause (a) of the definition of “Pro
Rata Share”); or

 

(e)          if
any Defaulting Lender’s obligation to participate in Letters of Credit is neither Cash Collateralized nor reallocated pursuant
to Section 2.6.2, then, without prejudice to any rights or remedies of any Issuing Lender or any Lender hereunder,
all letter of credit fees payable under Section 5.2 with respect to such Defaulting Lender’s obligation to participate
in Letters of Credit shall be payable to the applicable Issuing Lender until such obligation to participate in Letters of Credit
is Cash Collateralized and/or reallocated; and

 

(f)          so
long as any Lender is a Defaulting Lender, no Issuing Lender shall be required to issue, amend or increase any Letter of Credit,
unless it is satisfied that the related exposure will be 100% covered by the Commitments of the non-Defaulting Lenders with Revolving
Commitments and/or cash collateral will be provided by Borrower in accordance with Section 2.6.2, and participating
interests in any such newly issued or increased Letter of Credit shall be allocated among non-Defaulting Lenders in a manner consistent
with Section 2.6.2(a) (and Defaulting Lenders shall not participate therein).

 

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2.6.3           In
the event that Administrative Agent, Borrower and the applicable Issuing Lender(s) each agrees that a Defaulting Lender has adequately
remedied all matters that caused such Lender to be a Defaulting Lender, then the obligations to participate in Letters of Credit
of the Lenders shall be readjusted to reflect the inclusion of such Lender’s Commitment and on such date such Lender shall
purchase at par such of the Loans of the other Lenders as Administrative Agent shall determine may be necessary in order for such
Lender to hold such Loans in accordance with its Pro Rata Share (as determined pursuant to clause (a) of the definition of
“Pro Rata Share”).

 

2.6.4           Any
amount payable to a Defaulting Lender hereunder (whether on account of principal, interest, fees or otherwise and including any
amount that would otherwise be payable to such Defaulting Lender pursuant to Section 7.5 but excluding Section 8.7(b))
shall, in lieu of being distributed to such Defaulting Lender, be retained by Administrative Agent and, subject to any applicable
requirements of law, be applied at such time or times as may be determined by Administrative Agent (i) first, to the payment
of any amounts owing by such Defaulting Lender to Administrative Agent hereunder, (ii) second, pro rata, to the payment of
any amounts owing by such Defaulting Lender to the Issuing Lender(s) hereunder, (iii) third, to the funding of any Revolving
Loan or Delayed Draw Term Loan or the funding or Cash Collateralization of any participating interest in any Letter of Credit in
respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by
Administrative Agent, (iv) fourth, if so determined by Administrative Agent and Borrower, held as cash collateral for future
funding obligations of the Defaulting Lender under this Agreement, (v) fifth, pro rata, to the payment of any amounts owing
to Borrower or the Lenders as a result of any judgment of a court of competent jurisdiction obtained by Borrower or any Lender
against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement, and
(vi) sixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction; provided, that if such
payment is (x) a prepayment of the principal amount of any Loans or reimbursement obligations in respect of draws under Letters
of Credit with respect to which the Issuing Lender has funded its participation obligations and (y) made at a time when the
conditions set forth in Section 12.2 are satisfied, such payment shall be applied solely to prepay the Loans of, and
reimbursement obligations owed to, all Lenders that are not Defaulting Lenders pro rata prior to being applied to the prepayment
of any Loans, or reimbursement obligations owed to, any Defaulting Lender.

 

2.6.5           No
Defaulting Lender shall have any right to approve or disapprove any amendment, waiver, consent or any other action the Lenders
or the Required Lenders have taken or may take hereunder (including any consent to any amendment or waiver pursuant to Section 15.1),
provided that any waiver, amendment or modification requiring the consent of all Lenders or each directly affected Lender which
affects such Defaulting Lender differently than other affected Lenders shall require the consent of such Defaulting Lender.

 

Section 3EVIDENCING
OF LOANS.

 

3.1           Notes.  At
a Lender’s request, the Loans of such Lender shall be evidenced by one or more Notes, with appropriate insertions, payable
to the order of such Lender in a face principal amount equal to such Lender’s Revolving Commitment or the principal amount
of such Lender’s Term A Loans or the principal amount of such Lender’s Delayed Draw Term Loans, as applicable.

 

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3.2           Recordkeeping.  Administrative
Agent, on behalf of each Lender, shall record in its records, the date and amount of each Loan made by each Lender, each repayment
or conversion thereof.  The aggregate unpaid principal amount so recorded shall be rebuttably presumptive evidence of
the principal amount of the Loans owing and unpaid.  The failure to so record any such amount or any error in so recording
any such amount shall not, however, limit or otherwise affect the Obligations of Borrower hereunder or under any Note to repay
the principal amount of the Loans hereunder, together with all interest accruing thereon.

 

Section 4   INTEREST.

 

4.1           Interest
Rates.  Borrower agrees to pay interest on the unpaid principal amount of each Loan for the period commencing on
the date of such Loan until such Loan is paid in full as follows:

 

(a)          at
all times while such Loan is a Base Rate Loan, at a rate per annum equal to the sum of the Base Rate from time to time in effect
plus the Applicable Margin for Base Rate Loans; and

 

(b)          at
all times while such Loan is a LIBOR Loan, at a rate per annum equal to the sum of the LIBOR Rate from time to time in effect plus
the Applicable Margin for LIBOR Loans;

 

provided that at any time an Event of
Default exists, if the Administrative Agent or the Required Lenders request, the interest rate applicable to each Loan shall be
increased by 2% (and, in the case of Obligations not bearing interest, such Obligations shall bear interest at the Base Rate applicable
to Revolving Loans plus the Applicable Margin for Base Rate Loans that are Revolving Loans plus 2%), provided further that
such increase may thereafter be rescinded by the Administrative Agent and Required Lenders, notwithstanding Section 15.1.  Notwithstanding
the foregoing, upon the occurrence of an Event of Default under Sections 13.1.1 or 13.1.4, such increase and
such bearing of interest shall occur automatically.  In no event shall interest payable by Borrower to any Lender hereunder
exceed the maximum rate permitted under applicable law, and if any such provision of this Agreement is in contravention of any
such law, such provision shall be deemed modified to limit such interest to the maximum rate permitted under such law.

 

4.2           Interest
Payment Dates.  Accrued interest on each Loan shall be payable in arrears on the last Business Day of each calendar
month, upon a prepayment of such Loan and at maturity.  After maturity, and at any time an Event of Default exists,
all accrued interest on all Loans shall be payable in cash on demand.  

 

4.3           Setting
and Notice of LIBOR Rates.  The LIBOR Rate shall be determined by Administrative Agent.  Each determination
of the applicable LIBOR Rate by Administrative Agent shall be conclusive and binding upon the parties hereto, in the absence of
demonstrable error.  

 

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4.4           Computation
of Interest.  Interest shall be computed for the actual number of days elapsed on the basis of a year of (a) three
hundred sixty (360) days for interest calculated at the LIBOR Rate and (b) three hundred sixty-five (365)/three hundred sixty-six
(366) days for interest calculated at the Base Rate.  The applicable interest rate for each Base Rate Loan shall change
simultaneously with each change in the Base Rate.

 

Section 5   FEES.

 

5.1           Non-Use
Fee.  Borrower agrees to pay to Administrative Agent for the account of each Lender with a Revolving Commitment (except
as provided in Section 2.6) a non-use fee, for the period from the Closing Date to the Termination Date, at the Non-Use
Fee Rate in effect from time to time of such Lender’s Pro Rata Share (as adjusted from time to time) of the average daily
unused amount of the Revolving Commitments.  For purposes of calculating usage under this Section, the Revolving Commitments
shall be deemed used to the extent of Revolving Outstandings.  Such non-use fee shall be payable in arrears on the last
Business Day of each calendar quarter and on the Termination Date for any period then ending for which such non-use fee shall not
have previously been paid.  The non-use fee shall be computed for the actual number of days elapsed on the basis of a
year of three hundred sixty (360) days.  

 

5.2           Letter
of Credit Fees.  (a) Except as provided in Section 2.6, Borrower agrees to pay to Administrative
Agent for the account of each Lender with a Revolving Commitment (except as provided in Section 2.6) a letter of credit
fee for each Letter of Credit equal to the L/C Fee Rate of such Lender’s Pro Rata Share (as adjusted from time to time) of
the undrawn amount of such Letter of Credit (computed for the actual number of days elapsed on the basis of a year of three hundred
sixty (360) days); provided that, unless the Administrative Agent and Required Lenders otherwise consent, the rate applicable
to each Letter of Credit shall be increased by 2% at any time that an Event of Default exists.  Such letter of credit
fee shall be payable in arrears on the last Business Day of each calendar quarter and on the Termination Date (or such later date
on which such Letter of Credit expires or is terminated) for the period from the date of the issuance of each Letter of Credit
(or the last day on which the letter of credit fee was paid with respect thereto) to the date such payment is due or, if earlier,
the date on which such Letter of Credit expired or was terminated.  

 

(b)          In
addition, with respect to each Letter of Credit, except as provided in Section 2.6, Borrower agrees to pay to any Issuing
Lender, for its own account, (i) such fees and expenses as such Issuing Lender customarily requires in connection with the
issuance, negotiation, processing and/or administration of letters of credit in similar situations and (ii) a letter of credit
fronting fee in the amount and at the times agreed to by Borrower and such Issuing Lender.

 

5.3           Administrative
Agent’s Fees.  Borrower agrees to pay to Administrative Agent such agent’s fees as are mutually agreed
to from time to time by Borrower and Administrative Agent including the fees set forth in the Agent Fee Letter.

 

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5.4           Delayed
Draw Term Loan Non-Use Fee.  Borrower agrees to pay to Administrative Agent for the account of each Lender with a
Delayed Draw Term Loan Commitment in accordance with its Pro Rata Share (except as provided in Section 2.6), an unused
delayed draw term loan fee equal to the product of (i) 0.50% per annum times (ii) the unused amount of the Delayed
Draw Term Loan Commitments (“Delayed Draw Term Loan Non-Use Fee”).  The Delayed Draw Term Loan Non-Use
Fee shall accrue at all times from the Closing Date through the earlier to occur of (i) the date that the Delayed Draw Term
Loans are funded by the Lenders and (ii) the Delayed Draw Term Loan Commitment Expiration Date, and shall be due and payable
quarterly in arrears (i) on the last day of each calendar quarter, and (ii) on the date that the Delayed Draw Term Loans
are funded by the Lenders or the Delayed Draw Term Loan Commitment Expiration Date.  The Delayed Draw Term Loan Non-Use
Fee shall be computed for the actual number of days elapsed on the basis of a year of three hundred sixty (360) days.

 

Section 6   REDUCTION
OR TERMINATION OF THE REVOLVING COMMITMENT; PREPAYMENTS.

 

6.1           Reduction
or Termination of the Revolving Commitment.

 

6.1.1           Voluntary
Reduction or Termination of the Revolving Commitment.  Borrower may from time to time on at least five (5) Business
Days’ prior written notice received by Administrative Agent (which shall promptly advise each Lender thereof) permanently
reduce the Revolving Commitments to an amount not less than the Revolving Outstandings (after giving effect to any repayment of
the Revolving Outstandings concurrently with such reduction).  Any such reduction shall be in an amount not less than
$500,000 or a higher integral multiple of $100,000.  Concurrently with any reduction of the Revolving Commitments to
zero, Borrower shall pay all interest on the Revolving Loans, all non-use fees and all letter of credit fees and shall Cash Collateralize
in full all obligations arising with respect to the Letters of Credit.

 

6.1.2           Mandatory
Reductions of Revolving Commitment.  On the date of any Mandatory Prepayment Event, the Revolving Commitments shall
be permanently reduced by an amount (if any) equal to the Designated Proceeds of such Mandatory Prepayment Event over the amount
(if any) applied to prepay Term Loans pursuant to Section 6.2.2.  

 

6.1.3           All
Reductions of the Revolving Commitment.  All reductions of the Revolving Commitments shall reduce the Revolving Commitments
ratably among the Lenders according to their respective Pro Rata Shares.

 

6.1.4           Voluntary
Reduction or Termination of the Delayed Draw Term Loan Commitment.  Borrower may from time to time on at least five
(5) Business Days’ prior written notice received by Administrative Agent (which shall promptly advise each Lender thereof)
permanently reduce the Delayed Draw Term Loan Commitments to an amount not less than the then outstanding principal amount of the
Delayed Draw Term Loans.  Any such reduction shall be in an amount not less than $500,000 or a higher integral multiple
of $100,000.  Concurrently with any reduction of the Delayed Draw Term Loan Commitments to zero, Borrower shall pay all
non-use fees on the Delayed Draw Term Loan Commitments.

 

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6.1.5           All
Reductions of the Delayed Draw Term Loan Commitment.  All reductions of the Delayed Draw Term Loan Commitments shall
reduce the Delayed Draw Term Loan Commitments ratably among the Lenders according to their respective Pro Rata Shares.

 

6.2           Prepayments.

 

6.2.1           Voluntary
Prepayments.  Borrower may from time to time prepay the Loans in whole or in part; provided that Borrower
Representative shall give Administrative Agent (which shall promptly advise each Lender) notice thereof not later than 10:00 a.m.,
Chicago time, on the day of such prepayment of any Term Loan (which shall be a Business Day), specifying the date and amount of
prepayment.  Any such partial prepayment of a Term Loan shall be in an amount equal to $500,000 or a higher integral
multiple of $100,000.

 

6.2.2            Mandatory
Prepayments.

 

(a)          Borrower
shall make a prepayment of the Term Loans until paid in full upon the occurrence of any of the following (each a “Mandatory
Prepayment Event”) at the following times and in the following amounts (such applicable amounts being referred to as
“Designated Proceeds”):

 

(i)          Concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any Asset Disposition, in an amount equal to 100% of such Net
Cash Proceeds.  Notwithstanding the foregoing, if at the time of the receipt of such Net Cash Proceeds, the Borrower
Representative delivers to the Administrative Agent a certificate, executed by the Borrower Representative's chief financial officer,
that it intends within one hundred eighty (180) days after receipt thereof to use all of such Net Cash Proceeds to purchase assets
of similar utility, Borrower may use such Net Cash Proceeds for such purpose, provided, that, (A) such Net Cash Proceeds shall
be held in deposit accounts over which the Administrative Agent has a first priority perfected Lien by virtue of "control"
(as defined in the UCC) of such accounts, until such time as such Net Cash Proceeds are used to purchase such assets, (B) the aggregate
amount of such Net Cash Proceeds so used and not subject to prepayment under this clause (i) of this Section 6.2.2(a)
shall not exceed $500,000 in the aggregate, (C) no Default or Event of Default has occurred and is continuing at the time of the
receipt of such Net Cash Proceeds or at the time of the usage of such Net Cash Proceeds or as a result thereof, and (D) any such
Net Cash Proceeds not so used on or before the earlier of the following dates shall promptly (but in any event within three (3)
Business Days after such date) be applied as a prepayment of the Term Loans: (1) the date that is one hundred eighty (180)
days after receipt thereof, and (2) the date that is five (5) Business Days after the date on which the Borrower Representative
shall have notified the Administrative Agent of the Borrowers' determination not to purchase such assets with such Net Cash Proceeds.

 

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(ii)         Concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any issuance of Capital Securities of any Loan Party or from any
capital contribution received by a Loan Party (excluding any issuance by a Subsidiary to Borrower or another Wholly-Owned Subsidiary),
in an amount equal to 100% of such Net Cash Proceeds.

 

(iii)        Concurrently
with the receipt by any Loan Party of any Net Cash Proceeds from any issuance of any Debt of any Loan Party (excluding Debt permitted
by Section 11.1), in an amount equal to 100% of such Net Cash Proceeds.

 

(iv)        Within
the earlier of (x) fifty (50) days after the end of each Fiscal Quarter (commencing with the Fiscal Quarter ending on September
30, 2015) and (y) five (5) days after Borrower’s delivery of the Fiscal Quarter-end financial statements delivered pursuant
to Section 10.1.2(a) (commencing with the Fiscal Quarter ending on September 30, 2015), in an amount equal to the ECF Percentage
of Excess Cash Flow for such Fiscal Quarter; and

 

(v)         Concurrently
with the receipt by any Loan Party of any Extraordinary Receipts, in an amount equal to 100% of such Extraordinary Receipts.

 

(b)          If
on any date the Revolving Outstandings exceeds the Revolving Loan Availability, Borrower shall immediately first prepay Revolving
Loans and second Cash Collateralize the outstanding Letters of Credit, in an aggregate amount sufficient to eliminate such excess.

 

(c)          If
on any day on which the Revolving Commitments are reduced pursuant to Section 6.1.2 the Revolving Outstandings exceeds
the aggregate amount of the Revolving Commitments of all Lenders, Borrower shall immediately first prepay Revolving Loans and second
Cash Collateralize the outstanding Letters of Credit, in an aggregate amount sufficient to eliminate such excess.

 

6.3           Manner
of Prepayments.

 

6.3.1           All
Prepayments.  Any prepayment of a LIBOR Loan on a day other than the last day of an Interest Period therefor shall
include interest on the principal amount being repaid and shall be subject to Section 8.4.  All prepayments
of Term Loans shall be applied pro rata among the Term Loans according to the principal amounts thereof and, as to each Term Loan,
in the inverse order of maturity to the remaining installments thereof (including, without limitation, the final installment thereof).  

 

6.4           Repayments.

 

6.4.1           Revolving
Loans.  The Revolving Loans of each Lender shall be paid in full and the Revolving Commitments shall terminate on
the Termination Date.

 

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6.4.2           Term
A Loans.  The Term A Loans shall be paid in installments as follows:    

 

	PAYMENT DATE	 	INSTALLMENT AMOUNT	 
	 	 	 	 
	June 30, 2015	 	$	112,500	 
	September 30, 2015	 	$	112,500	 
	December 31, 2015	 	$	112,500	 
	March 31, 2016	 	$	112,500	 
	June 30, 2016	 	$	225,000	 
	September 30, 2016	 	$	225,000	 
	December 31, 2016	 	$	225,000	 
	March 31, 2017	 	$	225,000	 
	June 30, 2017	 	$	450,000	 
	September 30, 2017	 	$	450,000	 
	December 31, 2017	 	$	450,000	 
	March 31, 2018	 	$	450,000	 
	June 30, 2018	 	$	450,000	 
	September 30, 2018	 	$	450,000	 
	December 31, 2018	 	$	450,000	 
	March 31, 2019	 	$	450,000	 
	June 30, 2019	 	$	450,000	 
	September 30, 2019	 	$	450,000	 
	December 31, 2019	 	$	450,000	 
	March 31, 2020	 	$	450,000	 
	Term Loan Maturity Date	 	$	11,250,000	 

 

Unless sooner paid in full,
the outstanding principal balance of the Term A Loans shall be paid in full on the Term Loan Maturity Date.

 

6.4.3           Delayed
Draw Term Loans.  If the Delayed Draw Term Loans are funded, the Delayed Draw Term Loans shall be paid in installments
as follows:

 

	PAYMENT DATE	 	INSTALLMENT
    AMOUNT
	 	 	 
	December 31, 2015	 	0.625% of the original principal amount of the Delayed Draw Term Loans
	March 31, 2016	 	0.625% of the original principal amount of the Delayed Draw Term Loans
	June 30, 2016	 	1.25% of the original principal amount of the Delayed Draw Term Loans
	September 30, 2016	 	1.25% of the original principal amount of the Delayed Draw Term Loans
	December 31, 2016	 	1.25% of the original principal amount of the Delayed Draw Term Loans

 

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	PAYMENT DATE	 	INSTALLMENT
    AMOUNT
	 	 	 
	March 31, 2017	 	1.25% of the original principal amount of the Delayed Draw Term Loans
	June 30, 2017	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	September 30, 2017	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	December 31, 2017	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	March 31, 2018	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	June 30, 2018	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	September 30, 2018	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	December 31, 2018	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	March 31, 2019	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	June 30, 2019	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	September 30, 2019	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	December 31, 2019	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	March 31, 2020	 	2.5% of the original principal amount of the Delayed Draw Term Loans
	Term Loan Maturity Date	 	The outstanding principal amount of the Delayed Draw Term Loans

 

Unless sooner paid in full,
the outstanding principal balance of the Delayed Draw Term Loans shall be paid in full on the Term Loan Maturity Date.  

 

Section 7   MAKING
AND PRORATION OF PAYMENTS; SETOFF; TAXES.

 

7.1           Making
of Payments.  All payments of principal or interest on the Note(s), and of all fees, shall be made by Borrower to
Administrative Agent in immediately available funds at the office specified by Administrative Agent not later than noon, Chicago
time, on the date due; and funds received after that hour shall be deemed to have been received by Administrative Agent on the
following Business Day.  Subject to Section 2.6, Administrative Agent shall promptly remit to each Lender
its share of all such payments received in collected funds by Administrative Agent for the account of such Lender.  All
payments under Section 8.1 shall be made by Borrower directly to the Lender entitled thereto without setoff, counterclaim
or other defense.

 

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7.2           Application
of Certain Payments.  So long as no Default  or Event of Default has occurred and is continuing, (a) payments
matching specific scheduled payments then due shall be applied to those scheduled payments and (b) voluntary and mandatory
prepayments shall be applied as set forth in Sections 6.2 and 6.3.  After the occurrence and during
the continuance of a Default or an Event of Default, all amounts collected or received by Administrative Agent or any Lender as
proceeds from the sale of, or other realization upon, all or any part of the Collateral shall be applied as Administrative Agent
shall determine in its discretion or, in the absence of a specific determination by Administrative Agent, as set forth in the Guaranty
and Collateral Agreement.  

 

7.3           Due
Date Extension.  If any payment of principal or interest with respect to any of the Loans, or of any fees, falls
due on a day which is not a Business Day, then such due date shall be extended to the immediately following Business Day (unless,
in the case of a LIBOR Loan, such immediately following Business Day is the first Business Day of a calendar month, in which case
such due date shall be the immediately preceding Business Day) and, in the case of principal, additional interest shall accrue
and be payable for the period of any such extension.

 

7.4           Setoff.  Borrower,
for itself and each other Loan Party, agrees that Administrative Agent and each Lender have all rights of set-off and bankers’
lien provided by applicable law, and in addition thereto, Borrower, for itself and each other Loan Party, agrees that at any time
any Event of Default exists, Administrative Agent and each Lender may apply to the payment of any Obligations of Borrower and each
other Loan Party hereunder, whether or not then due, any and all balances, credits, deposits, accounts or moneys of Borrower and
each other Loan Party then or thereafter with Administrative Agent or such Lender.

 

7.5           Proration
of Payments.  Except as provided in Section 2.6, if any Lender shall obtain any payment or other recovery
(whether voluntary, involuntary, by application of offset or otherwise), on account of (a) principal of or interest on any
Loan (but excluding (i) any payment pursuant to Section 8 or 15.6 and (ii) payments of interest on
any Affected Loan) or (b) its participation in any Letter of Credit in excess of its applicable Pro Rata Share of payments
and other recoveries obtained by all Lenders on account of principal of and interest on the Loans (or such participation) then
held by them, then such Lender shall purchase from the other Lenders such participations in the Loans (or sub-participations in
Letters of Credit) held by them as shall be necessary to cause such purchasing Lender to share the excess payment or other recovery
ratably with each of them; provided that if all or any portion of the excess payment or other recovery is thereafter recovered
from such purchasing Lender, the purchase shall be rescinded and the purchase price restored to the extent of such recovery.

 

7.6           Taxes.

 

(a)          All
payments made by Borrower hereunder or under any Loan Documents shall be made without setoff, counterclaim, or other defense.  To
the extent permitted by applicable law, all payments hereunder or under the Loan Documents (including any payment of principal,
interest, or fees) to, or for the benefit, of any person shall be made by Borrower free and clear of and without deduction or withholding
for, or account of, any Taxes now or hereinafter imposed by any taxing authority.

 

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(b)          If
Borrower makes any payment hereunder or under any Loan Document in respect of which it is required by applicable law to deduct
or withhold any Taxes, (if such Taxes are Indemnified Taxes) Borrower shall increase the payment hereunder or under any such Loan
Document such that after the reduction for the amount of such Taxes withheld (and any Taxes withheld or imposed with respect to
the additional payments required under this Section 7.6(b)), the amount paid to the Lenders or Administrative Agent
equals the amount that was payable hereunder or under any such Loan Document without regard to this Section 7.6(b).  To
the extent Borrower withholds any Taxes on payments hereunder or under any Loan Document, Borrower shall pay the full amount deducted
to the relevant taxing authority within the time allowed for payment under applicable law and shall deliver to Administrative Agent
within thirty (30) days after it has made payment to such authority a receipt issued by such authority (or other evidence
reasonably satisfactory to Administrative Agent) evidencing the payment of all amounts so required to be deducted or withheld from
such payment. Borrower shall timely pay to the relevant taxing authority in accordance with applicable law, or at the option of
the Administrative Agent timely reimburse it for the payment of, any Other Taxes.

 

(c)          If
any Lender or Administrative Agent is required by law to make any payments of any Indemnified Taxes on or in relation to any amounts
received or receivable hereunder or under any other Loan Document, or any Indemnified Tax is assessed against a Lender or Administrative
Agent with respect to amounts received or receivable hereunder or under any other Loan Document, Borrower will indemnify such person
against (i) such Tax (and any reasonable counsel fees and expenses associated with such Tax) and (ii) any Taxes imposed
as a result of the receipt of the payment under this Section 7.6(c).  A certificate prepared in good faith
as to the amount of such payment by such Lender or Administrative Agent shall, absent manifest error, be final, conclusive, and
binding on all parties.

 

(d)          (i) To
the extent permitted by applicable law, each Lender that is not a United States person within the meaning of Code Section 7701(a)(30)
(a “Non-U.S. Participant”) shall deliver to Borrower and Administrative Agent on or prior to the Closing Date
(or in the case of a Lender that is an Assignee, on the date of such assignment to such Lender) two accurate and complete original
signed copies of IRS Form W-8BEN-E, W-8ECI, or W-8IMY (or any successor or other applicable form prescribed by the IRS), as applicable,
certifying to such Lender’s entitlement to a complete exemption from, or a reduced rate in, United States withholding Tax
on interest payments to be made hereunder or any Loan.  If a Lender that is a Non-U.S. Participant is claiming a complete
exemption from withholding on interest pursuant to Code Sections 871(h) or 881(c), the Lender shall deliver (along with two
accurate and complete original signed copies of IRS Form W-8BEN-E) a certificate in form and substance reasonably acceptable to
Administrative Agent (any such certificate, a “Withholding Certificate”).  In addition, each Lender
that is a Non-U.S. Participant  agrees that from time to time after the Closing Date, (or in the case of a Lender that
is an Assignee, after the date of the assignment to such Lender), when a lapse in time (or change in circumstances occurs) renders
the prior certificates hereunder obsolete or inaccurate in any material respect, such Lender shall, to the extent permitted under
applicable law, deliver to Borrower and Administrative Agent two new and accurate and complete original signed copies of an IRS
Form W-8BEN-E, W-8ECI, or W-8IMY (or any successor or other applicable forms prescribed by the IRS), and if applicable, a new Withholding
Certificate, to confirm or establish the entitlement of such Lender or Administrative Agent to an exemption from, or reduction
in, United States withholding Tax on interest payments to be made hereunder or any Loan.

 

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(ii)         Each
Lender that is not a Non-U.S. Participant (other than any such Lender which is taxed as a corporation for U.S. federal income tax
purposes) shall provide two properly completed and duly executed copies of IRS Form W-9 (or any successor or other applicable form)
to Borrower and Administrative Agent certifying that such Lender is exempt from United States backup withholding Tax.  To
the extent that a form provided pursuant to this Section 7.6(d)(ii) is rendered obsolete or inaccurate in any material
respect as result of change in circumstances with respect to the status of a Lender, such Lender shall, to the extent permitted
by applicable law, deliver to Borrower and Administrative Agent revised forms necessary to confirm or establish the entitlement
to such Lender’s or Administrative Agent’s exemption from United States backup withholding Tax.

 

(iii)        Borrower
shall not be required to pay additional amounts to a Lender under this Section 7.6 to the extent that such obligations
would not have arisen but for the failure of such Lender to comply with Section 7.6(d).

 

(iv)        Each
Lender agrees to indemnify Administrative Agent and hold Administrative Agent harmless for the full amount of any and all present
or future Taxes and related liabilities (including penalties, interest, additions to Tax and expenses, and any Taxes imposed by
any jurisdiction on amounts payable to Administrative Agent under this Section 7.6) which are imposed on or with respect
to principal, interest or fees payable to such Lender hereunder and which are not paid by Borrower pursuant to this Section 7.6
or as a result of such Lender’s failure to maintain a Participant Register in accordance with Section 15.6.2 hereof,
whether or not such Taxes or related liabilities were correctly or legally asserted.  This indemnification shall be made
within thirty (30) days from the date Administrative Agent makes written demand therefor.

 

Section 8   INCREASED
COSTS; SPECIAL PROVISIONS FOR LIBOR LOANS.

 

8.1           Increased
Costs.  (a) If, after the date hereof, the adoption of, or any change in, any applicable law, rule or regulation,
or any change in the interpretation or administration of any applicable law, rule or regulation by any governmental authority,
central bank or comparable agency charged with the interpretation or administration thereof, or compliance by any Lender with any
request or directive (whether or not having the force of law) of any such authority, central bank or comparable agency:  (i) shall
impose, modify or deem applicable any reserve (including any reserve imposed by the FRB, but excluding any reserve included in
the determination of the LIBOR Rate pursuant to Section 4), special deposit or similar requirement against assets of,
deposits with or for the account of, or credit extended by any Lender; (ii) shall impose on any Lender any other condition
affecting its LIBOR Loans, its Note or its obligation to make LIBOR Loans; or (iii) shall subject any Lender to any Taxes or change
the basis of taxation of any payment to any Lender, or otherwise in respect of any Loans, Commitments, Letters of Credit or any
obligations under any Loan Document; and the result of anything described in clauses (i), (ii) and (iii) above is to
increase the cost to (or to impose a cost on) such Lender (or any LIBOR Office of such Lender) of making or maintaining any LIBOR
Loan, or to reduce the amount of any sum received or receivable by such Lender (or its LIBOR Office) under this Agreement or under
its Note with respect thereto, then within fifteen (15) days of demand by such Lender (which demand shall be accompanied by a statement
setting forth in reasonable detail the basis for such demand and a calculation of the amount thereof in reasonable detail, a copy
of which shall be furnished to Administrative Agent), Borrower shall pay directly to such Lender such additional amount as will
compensate such Lender for such increased cost or such reduction, so long as such amounts have accrued on or after the day which
is one hundred eighty (180) days prior to the date on which such Lender first made demand therefor.

 

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(b)          If
any Lender shall reasonably determine that any change in, or the adoption or phase-in of, any applicable law, rule or regulation
regarding capital adequacy, or any change in the interpretation or administration thereof by any governmental authority, central
bank or comparable agency charged with the interpretation or administration thereof, or the compliance by any Lender or any Person
controlling such Lender with any request or directive regarding capital adequacy (whether or not having the force of law) of any
such authority, central bank or comparable agency, has or would have the effect of reducing the rate of return on such Lender’s
or such controlling Person’s capital as a consequence of such Lender’s obligations hereunder or under any Letter of
Credit to a level below that which such Lender or such controlling Person could have achieved but for such change, adoption, phase-in
or compliance (taking into consideration such Lender’s or such controlling Person’s policies with respect to capital
adequacy) by an amount deemed by such Lender or such controlling Person to be material, then from time to time, within fifteen
(15) days of demand by such Lender (which demand shall be accompanied by a statement setting forth in reasonable detail the basis
for such demand and a calculation of the amount thereof in reasonable detail, a copy of which shall be furnished to Administrative
Agent), Borrower shall pay to such Lender such additional amount as will compensate such Lender or such controlling Person for
such reduction so long as such amounts have accrued on or after the day which is one hundred eighty (180) days prior to the date
on which such Lender first made demand therefor.

 

8.2           Basis
for Determining Interest Rate Inadequate or Unfair.  If:

 

(a)          Administrative
Agent reasonably determines (which determination shall be binding and conclusive on Borrower) that by reason of circumstances affecting
the interbank LIBOR market adequate and reasonable means do not exist for ascertaining the applicable LIBOR Rate; or

 

(b)          the
Required Lenders advise Administrative Agent that the LIBOR Rate as determined by Administrative Agent will not adequately and
fairly reflect the cost to such Lenders of maintaining or funding LIBOR Loans (taking into account any amount to which such Lenders
may be entitled under Section 8.1) or that the making or funding of LIBOR Loans has become impracticable as a result
of an event occurring after the date of this Agreement which in the opinion of such Lenders materially affects such Loans;

 

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then Administrative Agent shall promptly
notify the other parties thereof and, so long as such circumstances shall continue, (i) no Lender shall be under any obligation
to make LIBOR Loans and (ii) on the last day of the current Interest Period for each LIBOR Loan (or such earlier date as requested
by Administrative Agent), such Loan shall, unless then repaid in full, automatically convert to a Base Rate Loan.

 

8.3           Changes
in Law Rendering LIBOR Loans Unlawful.  If any change in, or the adoption of any new, law or regulation, or any change
in the interpretation of any applicable law or regulation by any governmental or other regulatory body charged with the administration
thereof, should make it (or in the good faith judgment of any Lender cause a substantial question as to whether it is) unlawful
for any Lender to make, maintain or fund LIBOR Loans, then such Lender shall promptly notify each of the other parties hereto and,
so long as such circumstances shall continue, (a) such Lender shall have no obligation to make a LIBOR Loan (but shall make
Base Rate Loans concurrently with the making of LIBOR Loans by the Lenders which are not so affected, in each case in an amount
equal to the amount of LIBOR Loans which would be made by such Lender at such time in the absence of such circumstances) and (b) on
the last day of the current Interest Period for each LIBOR Loan of such Lender (or, in any event, on such earlier date as may be
required by the relevant law, regulation or interpretation or as required by Administrative Agent), such LIBOR Loan shall, unless
then repaid in full, automatically convert to a Base Rate Loan.  Each Base Rate Loan made by a Lender which, but for
the circumstances described in the foregoing sentence, would be a LIBOR Loan (an “Affected Loan”) shall remain
outstanding for the period corresponding to the LIBOR Loans of which such Affected Loan would be a part absent such circumstances.

 

8.4           Funding
Losses.  Borrower hereby agrees that upon demand by any Lender (which demand shall be accompanied by a statement
setting forth the basis for the amount being claimed, a copy of which shall be furnished to Administrative Agent), Borrower will
indemnify such Lender against any net loss or expense which such Lender may sustain or incur (including any net loss or expense
incurred by reason of the liquidation or reemployment of deposits or other funds acquired by such Lender to fund or maintain any
LIBOR Loan), as reasonably determined by such Lender, as a result of (a) any payment, prepayment or conversion of any LIBOR
Loan of such Lender on a date other than the last day of an Interest Period for such Loan (including any conversion pursuant to
Section 8.3) or (b) any failure of Borrower to borrow, prepay, convert or continue any Loan on a date specified
therefor in a notice of borrowing, prepayment, conversion or continuation pursuant to this Agreement.  For this purpose,
all notices to Administrative Agent pursuant to this Agreement shall be deemed to be irrevocable.

 

8.5           Right
of Lenders to Fund through Other Offices.  Each Lender may, if it so elects, fulfill its commitment as to any LIBOR
Loan by causing a foreign branch or Affiliate of such Lender to make such Loan; provided that in such event for the purposes
of this Agreement such Loan shall be deemed to have been made by such Lender and the obligation of Borrower to repay such Loan
shall nevertheless be to such Lender and shall be deemed held by it, to the extent of such Loan, for the account of such branch
or Affiliate.

 

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8.6           Discretion
of Lenders as to Manner of Funding.  Notwithstanding any provision of this Agreement to the contrary, each Lender
shall be entitled to fund and maintain its funding of all or any part of its Loans in any manner it sees fit, it being understood,
however, that for the purposes of this Agreement all determinations hereunder shall be made as if such Lender had actually funded
and maintained each LIBOR Loan during each Interest Period for such Loan through the purchase of deposits having a maturity corresponding
to such Interest Period and bearing an interest rate equal to the LIBOR Rate for such Interest Period.

 

8.7           Mitigation
of Circumstances; Replacement of Lenders.  (a) Each Lender shall promptly notify Borrower and Administrative
Agent of any event of which it has knowledge which will result in, and will use reasonable commercial efforts available to it (and
not, in such Lender’s sole judgment, otherwise disadvantageous to such Lender) to mitigate or avoid, (i) any obligation
by Borrower to pay any amount pursuant to Sections 7.6 or 8.1 or (ii) the occurrence of any circumstances
described in Sections 8.2 or 8.3 (and, if any Lender has given notice of any such event described in clause
(i) or (ii) above and thereafter such event ceases to exist, such Lender shall promptly so notify Borrower and Administrative Agent).  Without
limiting the foregoing, each Lender will designate a different funding office if such designation will avoid (or reduce the cost
to Borrower of) any event described in clause (i) or (ii) above and such designation will not, in such Lender’s sole judgment,
be otherwise disadvantageous to such Lender.

 

(b)          If
Borrower becomes obligated to pay additional amounts to any Lender pursuant to Sections 7.6 or 8.1, or any Lender
gives notice of the occurrence of any circumstances described in Sections 8.2 or 8.3, or any Lender becomes
a Defaulting Lender, Borrower may designate another lender which is acceptable to Administrative Agent in its reasonable discretion
and the Issuing Lender in its reasonable discretion (such other lender being called a “Replacement Lender”)
to purchase the Loans of such Lender and such Lender’s rights hereunder, without recourse to or warranty by, or expense to,
such Lender, for a purchase price equal to the outstanding principal amount of the Loans payable to such Lender plus any accrued
but unpaid interest on such Loans and all accrued but unpaid fees owed to such Lender and any other amounts payable to such Lender
under this Agreement and any other Loan Document, and to assume all the obligations of such Lender hereunder, and, upon such purchase
and assumption (pursuant to an Assignment Agreement), such Lender shall no longer be a party hereto or have any rights hereunder
(other than rights with respect to indemnities and similar rights applicable to such Lender prior to the date of such purchase
and assumption) and shall be relieved from all obligations to Borrower hereunder, and the Replacement Lender shall succeed to the
rights and obligations of such Lender hereunder.

 

8.8           Conclusiveness
of Statements; Survival of Provisions.  Determinations and statements of any Lender pursuant to Sections 8.1,
8.2, 8.3 or 8.4 shall be conclusive absent demonstrable error.  Lenders may use reasonable averaging
and attribution methods in determining compensation under Sections 8.1 and 8.4, and the provisions of such Sections shall
survive repayment of the Obligations, cancellation of any Note(s), expiration or termination or Cash Collateralization of the Letters
of Credit and termination of this Agreement.  For purposes of this Agreement, the Dodd-Frank Wall Street Reform and Consumer
Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith, and all requests,
rules, guidelines or directives promulgated by the Bank for International settlements, the Basel Committee on Banking Supervision
(or any successor or similar authority) or the United States regulatory authorities, in each case pursuant to Basel III, shall
in each case be deemed to be adopted and gone into effect after the date of this Agreement.

 

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Section 9   REPRESENTATIONS
AND WARRANTIES.

 

To induce Administrative
Agent and the Lenders to enter into this Agreement and to induce the Lenders to make Loans and participate in Letters of Credit
hereunder and the Issuing Lenders to issue Letters of Credit hereunder, Borrower represents and warrants to Administrative Agent
and the Lenders that:

 

9.1           Organization.  Each
Loan Party is validly existing and in good standing under the laws of its jurisdiction of organization; and each Loan Party is
duly qualified to do business in each jurisdiction where, because of the nature of its activities or properties, such qualification
is required, except for such jurisdictions where the failure to so qualify would not have a Material Adverse Effect.

 

9.2           Authorization;
No Conflict.  Each Loan Party is duly authorized to execute and deliver each Loan Document to which it is a party,
Borrower is duly authorized to borrow monies hereunder and each Loan Party is duly authorized to perform its Obligations under
each Loan Document to which it is a party.  The execution, delivery and performance by each Loan Party of each Loan Document
to which it is a party, and the borrowings by Borrower hereunder, do not and will not (a) require any consent or approval
of any governmental agency or authority (other than any consent or approval which has been obtained and is in full force and effect),
(b) conflict with (i) any provision of law, (ii) the charter, by-laws or other organizational documents of any Loan
Party or (iii) any material agreement, material indenture, material instrument or other material document, or any judgment,
order or decree, which is binding upon any Loan Party or any of their respective properties, or (c) require, or result in,
the creation or imposition of any Lien on any asset of any Loan Party (other than Liens in favor of Administrative Agent created
pursuant to the Collateral Documents).

 

9.3           Validity
and Binding Nature.  Each of this Agreement and each other Loan Document to which any Loan Party is a party is the
legal, valid and binding obligation of such Person, enforceable against such Person in accordance with its terms, subject to bankruptcy,
insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity.

 

9.4           Financial
Condition.  The audited consolidated financial statements of Holdings and its Subsidiaries as at December 31, 2014,  and
the unaudited consolidated financial statements of Holdings and its Subsidiaries through February 28, 2015, copies of each of which
have been delivered to each Lender, were prepared in accordance with GAAP (subject, in the case of such unaudited statements, to
the absence of footnotes and to normal year-end adjustments) and present fairly the consolidated financial condition of
Holdings and its Subsidiaries as at such dates and the results of their operations for the periods then ended.  

 

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9.5           No
Material Adverse Change.  Since December 31, 2014, there has been no material adverse change in the financial condition,
operations, assets, business, properties or prospects of the Loan Parties taken as a whole.

 

9.6           Litigation
and Contingent Liabilities.  No litigation (including derivative actions), arbitration proceeding or governmental
investigation or proceeding is pending or, to Borrower’s knowledge, threatened in writing against any Loan Party which could
reasonably be expected to have a Material Adverse Effect, except as set forth in Schedule 9.6.  Other than
any liability incident to such litigation or proceedings, no Loan Party has any material contingent liabilities not listed on Schedule 9.6
or permitted by Section 11.1.

 

9.7           Ownership
of Properties; Liens.  Each Loan Party owns good and, in the case of real property,  marketable title to
all of its properties and assets, real and personal, tangible and intangible, of any nature whatsoever (including patents, trademarks,
trade names, service marks and copyrights), free and clear of all Liens, charges and claims (including infringement claims with
respect to patents, trademarks, service marks, copyrights and the like) except as permitted by Section 11.2.  No
financing statement or other public notice with respect to all or any part of the Collateral is on file or of record in any public
office, except filings evidencing Permitted Liens and filings for which termination statements have been delivered to Administrative
Agent.

 

9.8           Equity
Ownership; Subsidiaries.  All issued and outstanding Capital Securities of each Loan Party are duly authorized and
validly issued, fully paid, non-assessable, and (in the case of Subsidiaries of Holdings) free and clear of all Liens other than
those in favor of Administrative Agent, and such securities were issued in all material respects in compliance with all applicable
state and federal laws concerning the issuance of securities.  Schedule 9.8 sets forth the authorized Capital
Securities of each Loan Party as of the Closing Date.  All of the issued and outstanding Capital Securities of Borrower
are owned as set forth on Schedule 9.8 as of the Closing Date, and all of the issued and outstanding Capital Securities
of each Wholly-Owned Subsidiary is, directly or indirectly, owned by Borrower.  As of the Closing Date, except as set
forth on Schedule 9.8, there are no pre-emptive or other outstanding rights, options, warrants, conversion rights or
other similar agreements or understandings for the purchase or acquisition of any Capital Securities of any Loan Party.

 

9.9           Pension
Plans.  (a) The Unfunded Liability of all Pension Plans does not in the aggregate exceed 20% of the Total Plan
Liability for all such Pension Plans.  Each Pension Plan complies in all material respects with all applicable requirements
of law and regulations.  No contribution failure under Section 430 of the Code, Section 303 of ERISA or the
terms of any Pension Plan has occurred with respect to any Pension Plan, sufficient to give rise to a Lien under Section 303(k)
of ERISA, or otherwise to have a Material Adverse Effect.  There are no pending or, to the knowledge of Borrower, threatened,
claims, actions, investigations or lawsuits against any Pension Plan, any fiduciary of any Pension Plan, or any Loan Party or any
other member of the Controlled Group with respect to a Pension Plan or a Multiemployer Pension Plan which could reasonably be expected
to have a Material Adverse Effect.  No Loan Party and no other member of the Controlled Group has engaged in any prohibited
transaction (as defined in Section 4975 of the Code or Section 406 of ERISA) in connection with any Pension Plan or Multiemployer
Pension Plan which would subject that Person to any material liability.  Within the past five years, no Loan Party and
no other member of the Controlled Group has engaged in a transaction which resulted in a Pension Plan with an Unfunded Liability
being transferred out of the Controlled Group, which could reasonably be expected to have a Material Adverse Effect.  No
Termination Event has occurred or is reasonably expected to occur with respect to any Pension Plan, which could reasonably be expected
to have a Material Adverse Effect.

 

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(b)          All
contributions (if any) have been made to any Multiemployer Pension Plan that are required to be made by Loan Parties or any other
member of the Controlled Group under the terms of the plan or of any collective bargaining agreement or by applicable law; no Loan
Party and no other member of the Controlled Group has withdrawn or partially withdrawn from any Multiemployer Pension Plan, incurred
any withdrawal liability with respect to any such plan or received notice of any claim or demand for withdrawal liability or partial
withdrawal liability from any such plan, and no condition has occurred which, if continued, could result in a withdrawal or partial
withdrawal from any such plan; and no Loan Party and no other member of the Controlled Group has received any notice that any Multiemployer
Pension Plan is in reorganization, that increased contributions may be required to avoid a reduction in plan benefits or the imposition
of any excise tax, that any such plan is or has been funded at a rate less than that required under Section 412 of the Code,
that any such plan is or may be terminated, or that any such plan is or may become insolvent.

 

9.10         Investment
Company Act.  No Loan Party is an “investment company” or a company “controlled” by an “investment
company” or a “subsidiary” of an “investment company,” within the meaning of the Investment Company
Act of 1940.

 

9.11         Compliance
with Laws.  Each Loan Party and each Subsidiary thereof is in compliance with the requirements of all laws and all
orders, writs, injunctions and decrees applicable to it or to its properties, except in such instances in which (a) such requirement
of law or order, writ, injunction or decree is being contested in good faith by appropriate proceedings diligently conducted or
(b) the failure to comply therewith, either individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

 

9.12         Regulation
U.  No Loan Party is engaged principally, or as one of its important activities, in the business of extending credit
for the purpose of purchasing or carrying Margin Stock.

 

9.13         Taxes.  Each
Loan Party has timely filed (taking into account any valid extensions to file) all Tax returns and reports required by law to have
been filed by it and has paid all Taxes and governmental charges due and payable with respect to such return, except any such Taxes
or charges which are being diligently contested in good faith by appropriate proceedings and for which adequate reserves in accordance
with GAAP shall have been set aside on its books.  The Loan Parties have made adequate reserves on their books and records
in accordance with GAAP for all taxes that have accrued but which are not yet due and payable.  No Loan Party has participated
in any transaction that relates to a year of the taxpayer (which is still open under the applicable statute of limitations) which
is a “reportable transaction” within the meaning of Treasury Regulations Section 1.6011-4(b)(2) (irrespective
of the date when the transaction was entered into).  No Loan Party is a party to any Tax sharing, Tax indemnity or similar
agreement or arrangement with any other Person.

 

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9.14         Solvency,
etc.  On the Closing Date, and immediately prior to and after giving effect to the issuance of each Letter of Credit
and each borrowing hereunder and the use of the proceeds thereof, with respect to each Loan Party, individually, (a) the fair
value of its assets is greater than the amount of its liabilities (including disputed, contingent and unliquidated liabilities)
as such value is established and liabilities evaluated in accordance with GAAP, (b) the present fair saleable value of its
assets is not less than the amount that will be required to pay the probable liability on its debts as they become absolute and
matured, (c) it is able to realize upon its assets and pay its debts and other liabilities (including disputed, contingent
and unliquidated liabilities) as they mature in the normal course of business, (d) it does not intend to, and does not believe
that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities mature and (e) it is not
engaged in business or a transaction, and is not about to engage in business or a transaction, for which its property would constitute
unreasonably small capital.

 

9.15         Environmental
Matters.  Except as would not reasonably be expected to have a Material Adverse Effect:

 

(a)          Each
of the Facilities and all past and current operations at or from the Facilities are in compliance with all applicable Environmental
Laws, and there is no violation of any Environmental Law with respect to the Facilities or the Loan Party’s operations, and
there are no conditions relating to the Facilities or the Loan Party’s operations that could give rise to liability or obligation
under any applicable Environmental Laws.

 

(b)          None
of the Facilities contains or has previously contained any Hazardous Substances at, on or under the Facilities in amounts or concentrations
that constitute or constituted a violation of, or could give rise to liability under, Environmental Laws.

 

(c)          Each
Loan Party has obtained, and maintained in good standing, all licenses, permits, authorizations, registrations and other approvals
required under any Environmental Law and required for their respective ordinary course operations, and for their reasonably anticipated
future operations, and each Loan Party is in compliance with all terms and conditions thereof.

 

(d)          No
Loan Party has received or reasonably anticipates the issuance of any written or verbal notice of, or inquiry from, or agreement
with, any federal, state or local governmental authority regarding any violation, alleged violation, non-compliance, liability
or potential liability arising under Environmental Laws with regard to any of the Facilities or the Loan Party’s operations,
nor does any Loan Party have knowledge or reason to believe that any such notice will be received or is being threatened.

 

(e)          Hazardous
Substances have not been transported or disposed of from the Facilities, or generated, treated, stored or disposed of at, on or
under any of the Facilities or any other location, in each case by or on behalf of any Loan Party, or arising from any Loan Party’s
operations, in violation of, or in a manner that would be reasonably likely to give rise to liability under, any applicable Environmental
Law.

 

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(f)          No
judicial proceeding or governmental or administrative action is pending or, to the knowledge of the Loan Parties, threatened, under
any Environmental Law to which any Loan Party is or will be named as a party, nor are there any consent decrees or other decrees,
consent orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental
Law with respect to any Loan Party, the Facilities or the Loan Party’s operations.

 

(g)          There
has been no release of Hazardous Substances at or from the Facilities, or arising from or related to the operations (including
disposal) of any Loan Party in connection with the Facilities or otherwise in connection with the Loan Party’s operations,
in violation of or in amounts or in a manner that could give rise to liability under Environmental Laws.

 

(h)          No
Loan Party has any underground storage tanks that are not properly registered or permitted under applicable Environmental Laws
or that at any time have released, leaked, disposed of or otherwise discharged Hazardous Substances.

 

9.16         Insurance.  Set
forth on Schedule 9.16 is a complete and accurate summary of the property and casualty insurance program of the Loan
Parties as of the Closing Date (including the names of all insurers, policy numbers, expiration dates, amounts and types of coverage,
annual premiums, exclusions, deductibles, self-insured retention, and a description in reasonable detail of any self-insurance
program, retrospective rating plan, fronting arrangement or other risk assumption arrangement involving any Loan Party).  Each
Loan Party and its properties are insured with financially sound and reputable insurance companies which are not Affiliates of
the Loan Parties, in such amounts, with such deductibles and covering such risks as are customarily carried by companies engaged
in similar businesses and owning similar properties in localities where such Loan Parties operate.

 

9.17         Real
Property.  Set forth on Schedule 9.17 is a complete and accurate list, as of the Closing Date, of the
address of all real property owned or leased by any Loan Party, together with, in the case of leased property, the name and mailing
address of the lessor of such property.

 

9.18         Information.  All
information heretofore or contemporaneously herewith furnished in writing by any Loan Party to Administrative Agent or any Lender
for purposes of or in connection with this Agreement and the transactions contemplated hereby is, and all written information hereafter
furnished by or on behalf of any Loan Party to Administrative Agent or any Lender pursuant hereto or in connection herewith will
be, true and accurate in all material respects on the date as of which such information is dated or certified, and none of such
information is or will be incomplete by omitting to state any material fact necessary to make such information not misleading in
light of the circumstances under which made (it being recognized by Administrative Agent and the Lenders that any projections and
forecasts provided by Borrower are based on good faith estimates and assumptions believed by Borrower to be reasonable as of the
date of the applicable projections or assumptions and that actual results during the period or periods covered by any such projections
and forecasts may differ from projected or forecasted results).

 

9.19         Intellectual
Property.  Each Loan Party owns and possesses or has a license or other right to use all patents, patent rights,
trademarks, trademark rights, trade names, trade name rights, service marks, service mark rights and copyrights as are necessary
for the conduct of the businesses of the Loan Parties, without any infringement upon rights of others which could reasonably be
expected to have a Material Adverse Effect.

 

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9.20         Burdensome
Obligations.  No Loan Party is a party to any agreement or contract or subject to any restriction contained in its
organizational documents which could reasonably be expected to have a Material Adverse Effect.

 

9.21         Labor
Matters.  Except as set forth on Schedule 9.21, no Loan Party is subject to any labor or collective bargaining
agreement.  There are no existing or threatened strikes, lockouts or other labor disputes involving any Loan Party that
singly or in the aggregate could reasonably be expected to have a Material Adverse Effect.  Hours worked by and payment
made to employees of the Loan Parties are not in violation of the Fair Labor Standards Act or any other applicable law, rule or
regulation dealing with such matters.

 

9.22         Anti-Terrorism
Laws.  (a)  No Loan Party (and, to the knowledge of each Loan Party, no joint venture or subsidiary thereof)
is in violation in any material respects of any United States Requirements of Law relating to terrorism, sanctions or money laundering
(the “Anti-Terrorism Laws”), including the United States Executive Order No. 13224 on Terrorist Financing
(the “Anti-Terrorism Order”) and the Patriot Act.

 

(a)          No
Loan Party (and, to the knowledge of each Loan Party, no joint venture or subsidiary thereof) (i) is listed in the annex to,
or is otherwise subject to the provisions of, the Anti-Terrorism Order, (ii) is owned or controlled by, or acting for or on
behalf of, any person listed in the annex to, or is otherwise subject to the provisions of, the Anti-Terrorism Order, (iii) commits,
threatens or conspires to commit or supports “terrorism” as defined in the Anti-Terrorism Order or (iv) is named
as a “specially designated national and blocked person” in the most current list published by OFAC.

 

(b)          No
Loan Party (and, to the knowledge of each Loan Party, no joint venture or Affiliate thereof) (i) conducts any business or
engages in making or receiving any contribution of funds, goods or services to or for the benefit of any person described in clauses
(b)(i) through (b)(iv) above, (ii) deals in, or otherwise engages in any transactions relating to, any property
or interests in property blocked pursuant to the Anti-Terrorism Order or (iii) 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.

 

9.23         No
Default.  No Default or Event of Default exists or would result from the incurrence by any Loan Party of any Debt
hereunder or under any other Loan Document.

 

9.24         Hedging
Agreements.  No Loan Party is a party to, nor will it be a party to, any Hedging Agreement other than a bona fide
(not speculative) unsecured Hedging Agreement, in form and substance reasonably acceptable to Administrative Agent, to protect
the Loan Parties against fluctuations in interest rates and with respect to not more than $25,000 of principal in the aggregate.

 

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9.25         OFAC.  Each
Loan Party is and will remain in compliance in all material respects with all U.S. economic sanctions laws, Executive Orders and
implementing regulations as promulgated by the U.S. Treasury Department’s Office of Foreign Assets Control (“OFAC”),
and all applicable anti-money laundering and counter-terrorism financing provisions of the Bank Secrecy Act and all regulations
issued pursuant to it.  No Loan Party and no Person who owns a controlling interest in or otherwise controls a Loan Party
(i) is a Person designated by the U.S. government on the list of the Specially Designated Nationals and Blocked Persons (the
“SDN List”) with which a U.S. Person cannot deal with or otherwise engage in business transactions, (ii) is
a Person who is otherwise the target of U.S. economic sanctions laws such that a U.S. Person cannot deal or otherwise engage in
business transactions with such Person or (iii) is controlled by (including without limitation by virtue of such person being
a director or owning voting shares or interests), or acts, directly or indirectly, for or on behalf of, any person or entity on
the SDN List or a foreign government that is the target of U.S. economic sanctions prohibitions such that the entry into, or performance
under, this Agreement or any other Loan Document would be prohibited under U.S. law.

 

9.26         Patriot
Act.  Loan Parties and each Person who owns a controlling interest in or otherwise controls a Loan Party are in compliance
with (a) the Trading with the Enemy Act, and each of the foreign assets control regulations of the United States Treasury
Department (31 CFR, Subtitle B Chapter V, as amended) and any other enabling legislation or executive order relating thereto, (b) the
Patriot Act and (c) other federal or state laws relating to “know your customer” and anti-money laundering
rules and regulations.  No part of the proceeds of any Loan will be used directly or indirectly for any payments to any
government official or employee, political party, official of a political party, candidate for political office, or anyone else
acting in an official capacity, in order to obtain, retain or direct business or obtain any improper advantage, in violation of
the United States Foreign Corrupt Practices Act of 1977.

 

9.27         Reserved.

 

9.28         Subordinated
Debt.  The subordination provisions of the Subordinated Debt are enforceable against the holders of the Subordinated
Debt by Administrative Agent and the Lenders.  All Obligations constitute senior Debt entitled to the benefits of the
subordination provisions contained in the Subordinated Debt.  Borrower acknowledges that Administrative Agent and each
Lender are entering into this Agreement and are extending the Commitments and making the Loans in reliance upon the subordination
provisions of the Subordinated Debt and this Section 9.28.

 

9.29         Holdings
and SAS Holdings.  Holdings and/or SAS Holdings have not engaged in any activities or operations other than (a) acting
as a holding company and transactions and activities reasonably incidental thereto, (b) issuing Capital Securities and, solely
with respect to Holdings,  the Colon Debt, and (c) paying usual and customary (i) solely with respect to Holdings, expenses
related to its status as a publicly traded company, (ii) expenses related to its board of directors, (iii) premiums for D&O
insurance, (iv) Delaware franchise Taxes, (v) expenses related to investor relations, (vi) solely with respect to Holdings, fees
and expenses related to SEC filings, and (vii) fees and expenses paid to BDO USA, LLP for audit and tax related services, in each
case to the extent permitted pursuant to this Agreement.  Neither Holdings nor SAS Holdings, respectively, holds any
assets other than all of the issued and outstanding Capital Securities of, with respect to Holdings, CTI, CSPI and SAS Holdings,
and with respect to SAS Holdings, Cyalume France.  Without limiting the generality of the foregoing, neither Holdings
nor SAS Holdings shall at any time directly hold any Capital Securities of any foreign Subsidiary, other than Cyalume France with
respect to SAS Holdings.

 

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9.30         French
Subsidiary.  The activities engaged in or carried out by Cyalume France do not fall under any of the items listed
under article R.153-2 of the French monetary and financial code.  The acquisition by the Borrower, directly or indirectly,
of the shares of Cyalume France did not require, at the time it was carried out, a prior approval of any governmental authority
or agency.  

 

Section 10AFFIRMATIVE
COVENANTS.

 

Until the expiration or
termination of the Commitments and thereafter until all Obligations hereunder and under the other Loan Documents are paid in full
and all Letters of Credit have been terminated or Cash Collateralized, Borrower agrees that, unless at any time the Required Lenders
shall otherwise expressly consent in writing, it will:

 

10.1         Reports,
Certificates and Other Information.  Furnish to Administrative Agent and each Lender:  

 

10.1.1           Annual
Report.  Promptly when available and in any event within one hundred five (105) days after the close of each Fiscal
Year: (a) a copy of the annual audit report of Holdings and its Subsidiaries for such Fiscal Year, including therein consolidated
balance sheets and statements of earnings and cash flows of Holdings and its Subsidiaries as at the end of such Fiscal Year,  certified
without adverse reference to going concern value and without qualification by independent auditors of recognized standing selected
by Borrower and reasonably acceptable to Administrative Agent (Administrative Agent acknowledges and agrees that, as of the Closing
Date, BDO USA, LLP is an accounting firm acceptable to Administrative Agent), together with a comparison with the budget for such
Fiscal Year and a comparison with the previous Fiscal Year; and (b) a consolidating balance sheet of Holdings and its Subsidiaries
as of the end of such Fiscal Year and consolidating statement of earnings and cash flows for Holdings and its Subsidiaries for
such Fiscal Year, certified by a Senior Officer of Borrower.

 

10.1.2           Interim
Reports.  (a)  Promptly when available and in any event within forty-five (45) days after the end of each
Fiscal Quarter, consolidated and consolidating balance sheets of Holdings and its Subsidiaries as of the end of such Fiscal Quarter,
together with consolidated and consolidating statements of earnings and cash flows for such Fiscal Quarter and for the period beginning
with the first day of such Fiscal Year and ending on the last day of such Fiscal Quarter, together with a comparison with the corresponding
period of the previous Fiscal Year and a comparison with the budget for such period of the current Fiscal Year, certified by a
Senior Officer of Borrower; and (b) promptly when available and in any event within thirty (30) days after the end of each
month, consolidated and consolidating balance sheets of Holdings and its Subsidiaries as of the end of such month, together with
consolidated and consolidating statements of earnings and a consolidated statement of cash flows for such month and for the period
beginning with the first day of such Fiscal Year and ending on the last day of such month, together with a comparison with the
corresponding period of the previous Fiscal Year and a comparison with the budget for such period of the current Fiscal Year, certified
by a Senior Officer of Borrower.

 

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10.1.3           Compliance
Certificates.  Contemporaneously with the furnishing of a copy of each annual audit report pursuant to Section 10.1.1
and each set of annual, quarterly, and monthly statements pursuant to Section 10.1.2, a duly completed compliance certificate
in the form of Exhibit B, with appropriate insertions, dated the date of such annual report or such statements and
signed by a Senior Officer of Borrower, containing (i) a computation of each of the financial ratios and restrictions set
forth in Section 11.14 and to the effect that such officer has not become aware of any Default or Event of Default
that has occurred and is continuing or, if there is any such event, describing it and the steps, if any, being taken to cure it
and (ii) a written statement of Borrower’s management setting forth a discussion of Holdings’ and its Subsidiaries’
financial condition, changes in financial condition and results of operations.

 

10.1.4           Reports
to the SEC and to Shareholders.  Promptly upon the filing or sending thereof, copies of all regular, periodic or
special reports of any Loan Party filed with the SEC; copies of all registration statements of any Loan Party filed with the SEC
(other than on Form S-8); and copies of all proxy statements or other communications made to security holders generally.

 

10.1.5           Notice
of Default, Litigation and ERISA Matters.  Promptly (and in no event later than three (3) Business Days) upon becoming
aware of any of the following, written notice describing the same and the steps being taken by Borrower or the Subsidiary affected
thereby with respect thereto:

 

(a)          the
occurrence of a Default or an Event of Default;

 

(b)          any
litigation, arbitration or governmental investigation or proceeding not previously disclosed by Borrower to Administrative Agent
which has been instituted or, to the knowledge of Borrower, is threatened in writing against any Loan Party or to which any of
the properties of any thereof is subject which might reasonably be expected to have a Material Adverse Effect;

 

(c)          the
institution of any steps by any member of the Controlled Group or any other Person to terminate any Pension Plan, or the failure
of any member of the Controlled Group to make a required contribution to any Pension Plan (if such failure is sufficient to give
rise to a Lien under Section 303(k) of ERISA) or to any Multiemployer Pension Plan, or the taking of any action with respect
to a Pension Plan which could result in the requirement that any Loan Party furnish a bond or other security to the PBGC or such
Pension Plan, or the occurrence of any event with respect to any Pension Plan or Multiemployer Pension Plan which could result
in the incurrence by any member of the Controlled Group of any material liability, fine or penalty (including any claim or demand
for withdrawal liability or partial withdrawal from any Multiemployer Pension Plan), or any material increase in the contingent
liability of any Loan Party with respect to any post-retirement welfare benefit plan of any Loan Party or another member of the
Controlled Group, or any notice that any Multiemployer Pension Plan is in reorganization, that increased contributions may be required
to avoid a reduction in plan benefits or the imposition of an excise Tax, that any such plan is or has been funded at a rate less
than that required under Section 412 of the Code, that any such plan is or may be terminated, or that any such plan is or
may become insolvent;

 

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(d)          any
cancellation or material change in any insurance maintained by any Loan Party; or

 

(e)          any
other event which might reasonably be expected to have a Material Adverse Effect (including (i) any violation of any Environmental
Law or the assertion of any Environmental Claim or (ii) the enactment or effectiveness of any law, rule or regulation).

 

10.1.6           Borrowing
Base Certificates; Accounts Receivable and Inventory Reports.  Within fifteen (15) days of the end of each month,
(a) a Borrowing Base Certificate dated as of the end of such month and executed by a Senior Officer of Borrower on behalf of Borrower
(provided that (i) Borrower may deliver a Borrowing Base Certificate more frequently if it chooses and (ii) at
any time an Event of Default exists, Administrative Agent may require Borrower to deliver Borrowing Base Certificates more frequently)
and (b) reports in form and detail reasonably satisfactory to Administrative Agent and certified by a Senior Officer of the Borrower
Representative as being accurate and complete (i) listing all Inventory and accounts receivable of Borrower as of such day, which
shall include the amount and age of each such account receivable, showing separately those which are more than 30, 60, 90, and
120 days old and a description of all Liens, set-offs, defenses and counterclaims with respect thereto, together with a reconciliation
of such schedule with the schedule delivered to Administrative Agent pursuant to this clause for the immediately preceding
month and such other information as Administrative Agent may reasonably request, and (ii) listing all accounts payable of
Borrower as of each such day which shall include the amount and age of each such account payable and such other information as
Administrative Agent may reasonably request.  

 

10.1.7           Management
Reports.  Promptly (and in no event later than five (5) Business Days) upon receipt thereof, copies of all detailed
financial and management reports submitted to Holdings or its Subsidiaries by independent auditors in connection with each annual
or interim audit made by such auditors of the books of Holdings and its Subsidiaries.

 

10.1.8           Projections.  As
soon as practicable, and in any event not later than the first Business Day of each Fiscal Year, financial projections for Holdings
and its Subsidiaries for such Fiscal Year (including a business plan, monthly operating and cash flow budgets and a capital expenditures
budget) prepared in a manner consistent with the projections delivered by Borrower to the Administrative Agent prior to the Closing
Date or otherwise in a manner reasonably satisfactory to Administrative Agent, accompanied by a certificate of a Senior Officer
of Borrower Representative on behalf of Borrower to the effect that (i) such projections were prepared by Borrower in good
faith, (ii) Borrower has a reasonable basis for the assumptions contained in such projections, (iii) such projections
have been prepared in accordance with such assumptions, and (iv) Holdings’ board of directors (or similar governing body)
have approved such projections.  

 

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10.1.9           Subordinated
Debt Notices.  Promptly (and in no event later than three (3) Business Days) following receipt, copies of any notices
(including notices of default or acceleration) received from any holder or trustee of, under or with respect to any Subordinated
Debt.

 

10.1.10         Updated
Schedule.  Contemporaneously with the furnishing of each annual audit report pursuant to Section 10.1.1,
an updated version of Schedule 9.17 showing information as of the date of such audit report (it being agreed and understood
that this requirement shall be in addition to the other notice and delivery requirements set forth herein).

 

10.1.11         Other
Information.  Promptly from time to time, such other information (including, without limitation, business or financial
data, reports, appraisals and projections) concerning the Loan Parties, their properties or business, as Administrative Agent may
reasonably request.

 

10.2         Books,
Records and Inspections.  Keep, and cause each other Loan Party to keep, its books and records in accordance with
sound business practices sufficient to allow the preparation of financial statements in accordance with GAAP; keep, and cause each
other Loan Party to keep, its books and records in an electronic medium; permit, and cause each other Loan Party to permit, Administrative
Agent or any representative or agent thereof to inspect the properties and operations of the Loan Parties at any reasonable time
and with reasonable notice (or at any time without notice if an Event of Default exists); and permit, and cause each other Loan
Party to permit, at any reasonable time and with reasonable notice (or at any time without notice if an Event of Default exists),
Administrative Agent or any representative or agent thereof to visit any or all of its offices, to discuss its financial matters
with its officers and its independent auditors (and Borrower hereby authorizes such independent auditors to discuss such financial
matters with any Lender or Administrative Agent or any representative or agent thereof), and to examine (and, at the expense of
the Loan Parties, photocopy extracts from) any of its books or other records; and permit, and cause each other Loan Party to permit,
Administrative Agent and its representatives and agents to inspect the Inventory and other tangible assets of the Loan Parties,
to perform appraisals of the equipment of the Loan Parties, and to inspect, audit, check and make copies of and extracts from the
books, records, computer data, computer programs, journals, orders, receipts, correspondence and other data relating to Inventory,
Accounts and any other collateral.  All such inspections or audits by Administrative Agent shall be at Borrower’s
expense; provided, however, that so long as no Default or Event of Default exists, Borrower shall not be required
to reimburse Administrative Agent for inspections more frequently than twice each Fiscal Year or an appraisal or audit more frequently
than once each Fiscal Year.  Any Lender may accompany Administrative Agent or its representatives or agents in connection
with any inspection or visit at Lender’s expense (except at Borrower’s expense during the existence of an Event of
Default).

 

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10.3         Maintenance
of Property; Insurance.  (a) Keep, and cause each other Loan Party to keep, all property useful and necessary
in the business of the Loan Parties in good working order and condition, ordinary wear and tear excepted.

 

(b)          Maintain,
and cause each other Loan Party to maintain, with responsible insurance companies, such insurance coverage as may be required by
any law or governmental regulation or court decree or order applicable to it and such other insurance, to such extent and against
such hazards and liabilities, as is customarily maintained by companies similarly situated (including, without limitation, business
interruption insurance in an amount not less than $2,750,000), but which shall insure against all risks and liabilities of the
type identified on Schedule 9.16 and shall have insured amounts no less than, and deductibles no higher than, those
set forth on such schedule; and, upon request of Administrative Agent or any Lender, furnish to Administrative Agent or such Lender
original or electronic copies of policies evidencing such insurance, and a certificate setting forth in reasonable detail the nature
and extent of all insurance maintained by the Loan Parties.  Borrower shall cause each issuer of an insurance policy
to provide Administrative Agent with an endorsement (i) showing Administrative Agent as loss payee with respect to each policy
of property or casualty insurance and naming Administrative Agent as an additional insured with respect to each policy of liability
insurance, (ii) providing that thirty (30) days’ notice will be given to Administrative Agent prior to any cancellation
of, material reduction or change in coverage provided by or other material modification to such policy and (iii) reasonably
acceptable in all other respects to Administrative Agent.  Borrower shall, and shall cause each other Loan Party to,
execute and deliver to Administrative Agent a collateral assignment, in form and substance reasonably satisfactory to Administrative
Agent, of each business interruption insurance policy maintained by any Loan Party.

 

(c)          If
either Dale Baker or Zivi Nedivi cease to remain employees, officers or directors of Borrower, maintain (within sixty (60) days
of the date such Person ceases to remain an employee, officer or director), a key man life insurance policy on the remaining Person
in the amount of $4,500,000.  In the event a key man life insurance policy is required pursuant to this subsection (c),
Borrower shall deliver to Administrative Agent a collateral assignment, in form and substance reasonably satisfactory to Administrative
Agent, of such key man life insurance policy.

 

(d)          UNLESS
BORROWER PROVIDES ADMINISTRATIVE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE REQUIRED BY THIS AGREEMENT, AFTER WRITTEN NOTICE
TO THE BORROWER (EXCEPT THAT SUCH NOTICE SHALL NOT BE REQUIRED DURING THE EXISTENCE OF A DEFAULT OR EVENT OF DEFAULT), ADMINISTRATIVE
AGENT MAY PURCHASE INSURANCE AT BORROWER’S EXPENSE TO PROTECT ADMINISTRATIVE AGENT’S AND THE LENDERS’ INTERESTS
IN THE COLLATERAL.  THIS INSURANCE MAY, BUT NEED NOT, PROTECT ANY LOAN PARTY’S INTERESTS.  THE COVERAGE
THAT ADMINISTRATIVE AGENT PURCHASES MAY NOT PAY ANY CLAIM THAT IS MADE AGAINST ANY LOAN PARTY IN CONNECTION WITH THE COLLATERAL.  BORROWER
MAY LATER CANCEL ANY INSURANCE PURCHASED BY ADMINISTRATIVE AGENT, BUT ONLY AFTER PROVIDING ADMINISTRATIVE AGENT WITH EVIDENCE THAT
LOAN PARTIES HAVE OBTAINED INSURANCE AS REQUIRED BY THIS AGREEMENT.  IF ADMINISTRATIVE AGENT PURCHASES INSURANCE FOR
THE COLLATERAL, BORROWER WILL BE RESPONSIBLE FOR THE COSTS OF THAT INSURANCE, INCLUDING INTEREST AND ANY OTHER CHARGES THAT MAY BE
IMPOSED WITH THE PLACEMENT OF THE INSURANCE, UNTIL THE EFFECTIVE DATE OF THE CANCELLATION OR EXPIRATION OF THE INSURANCE.  THE
COSTS OF THE INSURANCE MAY BE ADDED TO THE PRINCIPAL AMOUNT OF THE LOANS OWING HEREUNDER.  THE COSTS OF THE INSURANCE
MAY BE MORE THAN THE COST OF THE INSURANCE THE LOAN PARTIES MAY BE ABLE TO OBTAIN ON THEIR OWN.

 

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10.4         Compliance
with Laws; Payment of Taxes and Liabilities.  (a)  Comply, and cause each other Loan Party to comply, with
all applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except where failure to comply could
not reasonably be expected to have a Material Adverse Effect; (b) without limiting clause (a) above, ensure, and
cause each other Loan Party to ensure, that no person who owns a controlling interest in or otherwise controls a Loan Party is
or shall be (i) listed on the Specially Designated Nationals and Blocked Person List maintained by OFAC, Department of the
Treasury, and/or any other similar lists maintained by OFAC pursuant to any authorizing statute, Executive Order or regulation
or (ii) a person designated under Section 1(b), (c) or (d) of Executive Order No. 13224 (September 23,
2001), any related enabling legislation or any other similar Executive Orders, (c) without limiting clause (a) above,
comply, and cause each other Loan Party to comply, with all applicable Bank Secrecy Act (“BSA”) and anti-money
laundering laws and regulations and (d) pay, and cause each other Loan Party to pay, prior to delinquency, all taxes and other
governmental charges against it or any of its property, as well as claims of any kind which, if unpaid, could become a Lien on
any of its property; provided that the foregoing shall not require any Loan Party to pay any such Tax or charge so long
as it shall contest the validity thereof in good faith by appropriate proceedings and shall set aside on its books adequate reserves
with respect thereto in accordance with GAAP and, in the case of a claim which could become a Lien on any collateral, such contest
proceedings shall stay the foreclosure of such Lien or the sale of any portion of the collateral to satisfy such claim.

 

10.5         Maintenance
of Existence, etc.  Maintain and preserve, and (subject to Section 11.5) cause each other Loan Party
to maintain and preserve, (a) its existence and good standing in the jurisdiction of its organization and (b) its qualification
to do business and good standing in each jurisdiction where the nature of its business makes such qualification necessary (other
than such jurisdictions in which the failure to be qualified or in good standing could not reasonably be expected to have a Material
Adverse Effect).

 

10.6         Use
of Proceeds.  Use the proceeds of the Loans (other than the Delayed Draw Term Loans) and the Letters of Credit solely
to repay the Debt to be Repaid, for working capital purposes, for Capital Expenditures and for other general business purposes;
use the proceeds of the Delayed Draw Term Loans solely to make the Omniglow Settlement Payment; and not use or permit any proceeds
of any Loan to be used, either directly or indirectly, for the purpose, whether immediate, incidental or ultimate, of “purchasing
or carrying” any Margin Stock.

 

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10.7         Employee
Benefit Plans.

 

(a)          Maintain,
and cause each other member of the Controlled Group to maintain, each Pension Plan in substantial compliance with all applicable
requirements of law and regulations.

 

(b)          Make,
and cause each other member of the Controlled Group to make, on a timely basis, all required contributions to any Multiemployer
Pension Plan.

 

(c)          Not,
and not permit any other member of the Controlled Group to (i) seek a waiver of the minimum funding standards of ERISA, (ii) terminate
or withdraw from any Pension Plan or Multiemployer Pension Plan or (iii) take any other action with respect to any Pension
Plan that would reasonably be expected to entitle the PBGC to terminate, impose liability in respect of, or cause a trustee to
be appointed to administer, any Pension Plan, unless the actions or events described in clauses (i), (ii) and (iii) individually
or in the aggregate would not have a Material Adverse Effect.

 

10.8         Environmental
Matters.  (a) If any release or threatened release or other disposal of Hazardous Substances shall occur or shall
have occurred on any of the Facilities or any other assets of any Loan Party, Borrower shall, or shall cause the applicable Loan
Party to, cause the prompt containment and removal of such Hazardous Substances and the remediation of such real property or other
assets as necessary to comply with all Environmental Laws and to preserve the value of such real property or other assets.  Without
limiting the generality of the foregoing, Borrower shall, and shall cause each other Loan Party to, comply with any Federal or
state judicial or administrative order requiring the performance at any of the Facilities of any Loan Party of activities in response
to the release or threatened release of a Hazardous Substance.  To the extent that the transportation, handling, storage,
generation, treatment or disposal of Hazardous Substances is permitted by this Agreement, Borrower shall, and shall cause each
other Loan Party to comply with Environmental Laws in all such activities and to dispose of such Hazardous Substances, or of any
other wastes, only at licensed disposal facilities operating in compliance with Environmental Laws.  

 

(b)          Borrower
shall comply in all material respects with the requirements of all federal, state, and local Environmental Laws applicable to the
Loan Parties or the Facilities; notify the Administrative Agent promptly in the event of any spill, release or disposal of Hazardous
Substances on, or hazardous waste pollution or contamination affecting, the Facilities in material violation of applicable Environmental
Laws of which a Loan Party has actual knowledge; forward to the Administrative Agent promptly any written notices relating to such
matters received from any Governmental Authority; and pay when due any fine or assessment against the Facilities arising under
Environmental Laws, provided, that the Loan Parties shall not be required to pay any such fine or assessment so long as
the validity thereof shall be diligently contested in good faith by appropriate proceedings and they shall have set aside on their
books reasonable reserves (in accordance with GAAP) with respect to any such fine or assessment so contested; and provided
further that, in any event, payment of any such fine or assessment shall be made before any of the Facilities shall be subjected
to a Lien or be seized or sold in satisfaction thereof.

 

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(c)          Borrower
shall promptly notify the Administrative Agent upon becoming aware of any fact or change in circumstances that would be expected
to cause any of the representations and warranties contained in Section 9.15 to cease to be true in all material respects
for any time before the Closing Date.

 

10.9         Further
Assurances.  Take, and cause each other Loan Party to take, such actions as are necessary or as Administrative Agent
or the Required Lenders may reasonably request from time to time to ensure that the Obligations of each Loan Party under the Loan
Documents are secured by a first priority perfected Lien in favor of Administrative Agent (subject to Permitted Liens) on substantially
all of the assets of Borrower and each Loan Party (other than a foreign Subsidiary that is a CFC) (as well as all Capital Securities
of each domestic Subsidiary, all Capital Securities of each first-tier foreign Subsidiary that is not a CFC, and with respect to
any first-tier foreign Subsidiary that is a CFC, 100% of all non-voting Capital Securities and 65% of all voting Capital
Securities) and guaranteed by each Loan Party (including immediately upon the acquisition or creation thereof (or such longer period
as the Administrative Agent may provide in its sole discretion), any Subsidiary acquired or created after the Closing Date other
than a foreign Subsidiary that is a CFC), in each case as Administrative Agent may determine, including (a) the execution
and delivery of guaranties, security agreements, pledge agreements, mortgages, deeds of trust, financing statements, opinions of
counsel and other documents, in each case in form and substance reasonably satisfactory to Administrative Agent, and the filing
or recording of any of the foregoing, (b) the delivery of certificated securities and other Collateral with respect to which
perfection is obtained by possession, and (c) with respect to any real property acquired by any Loan Party (other than a foreign
Subsidiary that is a CFC) after the Closing Date, the delivery within thirty (30) days after the date such real property was acquired
(or such longer period as the Administrative Agent may provide in its sole discretion) of each of the Real Estate Documents with
respect to such real property.  

 

10.10         Accounts.  Unless
Administrative Agent otherwise consents in writing, in order to facilitate Administrative Agent’s and the Lenders’
maintenance and monitoring of their security interests in the Collateral, maintain all of their deposit accounts and securities
accounts (a) with a Lender within sixty (60) days after the Closing Date, provided, that each deposit account or securities
account of a Loan Party shall at all times be maintained with an institution that has entered into a control agreement with Administrative
Agent and the applicable Loan Party granting “control” (as defined in the UCC) of such accounts to Administrative Agent
and otherwise in form and substance reasonably satisfactory to Administrative Agent, and (b) in a structure reasonably acceptable
to Administrative Agent.

 

10.11         Reserved.  

 

10.12         Post
Closing Covenants.  Borrower shall satisfy the requirements and/or provide to the Administrative Agent each of the
documents, instruments, agreements and information set forth on Schedule 10.12, in form and substance acceptable to the
Administrative Agent, on or before the date specified for such requirement in such Schedule or such later date to be determined
by the Administrative Agent in its sole discretion, each of which shall be completed or provided in form and substance satisfactory
to the Administrative Agent.

 

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10.13         Holdings.  Holdings
shall not, directly or indirectly, (i) enter into any agreement (including any agreement for incurrence or assumption
of Debt, any purchase, sale, lease or exchange of any property or the rendering of any service), between itself and any other Person,
other than the Loan Documents to which it is a party (collectively, the “Holdings Documents”), (ii) engage
in any business or operations or conduct any activity (including the making of any Investment or payment) or transfer any of its
assets, other than the making of Investments in Borrower existing on the date hereof, the performance of its obligations under
the Holdings Documents in accordance with the terms thereof and the performance of ministerial activities (including, without limitation,
the activities conducted on the Closing Date that are permitted by Section 9.29) and the payment of taxes and administrative
fees or (iii) consolidate or merge with or into any other Person.  Holdings shall preserve, renew and keep in full
force and effect its existence.  Holdings shall not own any assets other than all of the issued and outstanding Capital
Securities of CTI, CSPI and SAS Holdings.  Without limiting the generality of the foregoing, Holdings shall not at any
time directly hold any Capital Securities of any foreign Subsidiary.

 

Section 11NEGATIVE
COVENANTS

 

Until the expiration or
termination of the Commitments and thereafter until all Obligations hereunder and under the other Loan Documents are paid in full
and all Letters of Credit have been terminated, Borrower agrees that, unless at any time the Required Lenders shall otherwise expressly
consent in writing, it will:

 

11.1         Debt.  Not,
and not permit any other Loan Party to, create, incur, assume or suffer to exist any Debt, except:

 

(a)          Obligations
under this Agreement and the other Loan Documents;

 

(b)          Debt
secured by Liens permitted by Section 11.2(d), and extensions, renewals and refinancings thereof; provided that
the aggregate amount of all such Debt at any time outstanding shall not exceed $125,000;

 

(c)          Debt
of Borrower to any domestic Wholly-Owned Subsidiary or Debt of any domestic Wholly-Owned Subsidiary to Borrower or another domestic
Wholly-Owned Subsidiary; provided that unless waived by the Administrative Agent, such Debt shall be evidenced by a demand
note in form and substance reasonably satisfactory to Administrative Agent and pledged and delivered to Administrative Agent pursuant
to the Collateral Documents as additional collateral security for the Obligations, and the obligations under such demand note shall
be subordinated to the Obligations of Borrower hereunder in a manner reasonably satisfactory to Administrative Agent;

 

(d)          unsecured
Hedging Obligations approved by Administrative Agent and incurred in favor of a Lender or an Affiliate thereof for bona fide hedging
purposes and not for speculation;

 

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(e)          Debt
described on Schedule 11.1 and any extension, renewal or refinancing thereof so long as the principal amount thereof
is not increased;

 

(f)          the
Debt to be Repaid (so long as such Debt is repaid on the Closing Date with the proceeds of the initial Loans hereunder);

 

(g)          Contingent
Liabilities arising with respect to customary indemnification obligations in favor of purchasers in connection with dispositions
permitted under Section 11.5;

 

(h)          the
Colon Debt: provided, however, that (i) such Debt shall at all times be subordinated to the Obligations on the terms
and conditions set forth in the documentation evidencing such Debt, (ii) the aggregate outstanding principal amount of such Debt
shall not at any time exceed $752,500, and (iii) such Debt shall at all times be unsecured;

 

(i)          guarantees
by a Borrower of the obligations of any other Borrower arising pursuant to a lease or license by such Borrower of real or personal
property in the ordinary course of the business of such Borrower, provided that such lease or license is not otherwise prohibited
under the Loan Documents;

 

(j)          Debt
in respect of appeal, bid, performance or surety or similar bonds issued for the account of any Borrower in the ordinary course
of business (in each case other than for an obligation for money borrowed), in an aggregate outstanding amount not at any time
exceeding $100,000;

 

(k)          Debt
arising from the honoring by a bank or other financial institution of a check, draft or similar instrument drawn against insufficient
funds in the ordinary course of business, provided, that, such Debt is extinguished within two (2) Business Days of its incurrence;

 

(l)          other
unsecured Debt in an aggregate outstanding amount not at any time exceeding $100,000;

 

(m)          Debt
owing by Cyalume France to HSBC France in the maximum aggregate outstanding principal amount not to exceed EUR 200,000 pursuant
to an unlimited duration overdraft (découvert à durée indéterminée) renewable each year; provided,
however, that none of the other Loan Parties are liable or obligated with respect to such Debt; and

 

(n)          Debt
owing by Cyalume France to Banque Palatine (i) in the maximum aggregate outstanding principal amount not to exceed EUR 200,000
pursuant to an unlimited duration overdraft facility (facilité de caisse à durée indéterminée)
and (ii) in the maximum aggregate principal amount not to exceed EUR 350,000 pursuant to a MCNE facility (mobilisation des créances
nées sur l’étranger) either by way of a facility secured by an assignment by way of guarantee of receivables
or by a sale on discount of receivables; provided, however, that none of the other Loan Parties are liable or obligated with respect
to such Debt.

 

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11.2         Liens.  Not,
and not permit any other Loan Party to, create or permit to exist any Lien on any of its real or personal properties, assets or
rights of whatsoever nature (whether now owned or hereafter acquired), except:

 

(a)          Liens
for Taxes or other governmental charges not at the time delinquent or thereafter payable without penalty or being diligently contested
in good faith by appropriate proceedings and, in each case, for which it maintains adequate reserves in accordance with GAAP and
the execution or other enforcement of which is effectively stayed;

 

(b)          Liens
arising in the ordinary course of business (such as (i) Liens of carriers, warehousemen, mechanics and materialmen and other
similar Liens imposed by law and (ii) Liens in the form of deposits or pledges incurred in connection with worker’s
compensation, unemployment compensation and other types of social security (excluding Liens arising under ERISA) or in connection
with surety bonds, bids, performance bonds and similar obligations) for sums not overdue or being diligently contested in good
faith by appropriate proceedings and not involving any advances or borrowed money or the deferred purchase price of property or
services and, in each case, for which it maintains adequate reserves in accordance with GAAP and the execution or other enforcement
of which is effectively stayed;

 

(c)          Liens
described on Schedule 11.2 as of the Closing Date;

 

(d)          subject
to the limitation set forth in Section 11.1(b), (i) Liens arising in connection with Capital Leases (and attaching
only to the property being leased), and (ii) Liens that constitute purchase money security interests on any property securing
debt incurred for the purpose of financing all or any part of the cost of acquiring such property, provided that any such
Lien attaches to such property within twenty (20) days of the acquisition thereof and attaches solely to the property so acquired;

 

(e)          attachments,
appeal bonds, judgments and other similar Liens for sums not exceeding $150,000 arising in connection with court proceedings, provided
the execution or other enforcement of such Liens is effectively stayed and the claims secured thereby are being actively contested
in good faith and by appropriate proceedings;

 

(f)          easements,
rights of way, restrictions, minor defects or irregularities in title that are disclosed by current ALTA/ASCM surveys, and other
similar Liens, in each case solely affecting real property, none of which, individually or collectively, (i) interfere in any material
respect with the ordinary conduct of the business of any Loan Party; or  (ii) materially or adversely affect the value
of the real property owned by any Loan Party;

 

(g)          Liens
arising under the Loan Documents;

 

(h)          customary
set off rights against depository accounts permitted hereunder in favor of banks at which a Loan Party maintains such depository
accounts, which set off rights only secure the obligations of such Loan Party to pay ordinary course fees and bank charges;

 

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(i)          Liens
consisting of precautionary filings of UCC financing statements filed with respect to Operating Leases permitted hereunder and
any interest of title of a lessor under any Operating Lease permitted hereunder; and

 

(j)          Liens
securing the Debt described in Section 11.1(n) hereof granted by Cyalume France to Banque Palatine solely on its receivables,
provided, however, that none of the assets of the other Loan Parties secure such Debt.

 

Notwithstanding anything
contained herein to the contrary, no Loan Party shall create or permit to exist any Lien on (x) any real or personal properties,
assets or rights of whatsoever nature (whether now owned or hereafter acquired) of any foreign Subsidiary, or (y) any Capital Securities
issued by any foreign Subsidiary (other than Liens arising under the Loan Documents).

 

11.3         Operating
Leases.  Not permit the aggregate amount of all rental payments under Operating Leases made (or scheduled to be made)
by the Loan Parties (on a consolidated basis) to exceed $1,000,000 in any Fiscal Year.

 

11.4         Restricted
Payments.  Not, and not permit any other Loan Party to, (a) make any distribution to any holders of its Capital
Securities (other than dividends or distributions payable solely in the Capital Securities of the Person making such dividend or
distribution), (b) purchase or redeem any of its Capital Securities, (c) pay any management fees, transaction-based fees
or similar fees to any of its equity holders or any Affiliate thereof, (d) make any redemption, prepayment (whether mandatory
or optional), defeasance, repurchase or any other payment in respect of any Subordinated Debt except (i) as otherwise expressly
permitted by the terms of a Subordination Agreement or (ii) regularly scheduled payments, on a non-default, non-accelerated basis,
of the Colon Debt, (e) pay any cash bonuses to Zivi Nedivi or Dale Baker earned in Fiscal Year 2015 except for cash bonuses in
an aggregate amount not to exceed $1,200,000, for so long as (i) there exists no Default or Event of Default both before and after
making such payment and (ii) Minimum Liquidity is equal to or greater than $750,000 both before and after making such payment,
provided, that in the event that any cash bonus payment is not permitted to be paid as a result of any Loan Party’s failure
to comply with clauses (i) and (ii) above, such payment may be paid immediately upon compliance (for the avoidance of doubt, the
foregoing restrictions shall not apply to any cash bonuses to Zivi Nedivi and/or Dale Baker earned any time after Fiscal Year 2015),
or (f) set aside funds for any of the foregoing.  

 

11.5         Mergers,
Consolidations, Sales.  Not, and not permit any other Loan Party to, (a) be a party to any merger or consolidation,
(b) sell, transfer, dispose of, convey or lease any of its assets or Capital Securities (including the sale of Capital Securities
of any Subsidiary) except for Excluded Asset Dispositions and the issuance of shares of Holdings, or (c) sell or assign with
or without recourse any receivables, except for (i) upon at least five (5) Business Days prior written notice to Administrative
Agent, any such merger, consolidation, sale, transfer, conveyance, lease or assignment of or by any domestic Wholly-Owned Subsidiary
into Borrower or into any other domestic Wholly-Owned Subsidiary; and (ii) any such purchase or other acquisition by Borrower
or any domestic Wholly-Owned Subsidiary of the assets or Capital Securities of any domestic Wholly-Owned Subsidiary.

 

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11.6         Modification
of Organizational Documents.  Not permit the charter, by-laws or other organizational documents of any Loan Party
to be amended or modified in any way which could reasonably be expected to materially adversely affect the interests of the Lenders;
not change, or allow any Loan Party to change, its state of formation or its organizational form.

 

11.7         Transactions
with Affiliates.  Except as set forth on Schedule 11.7, not, and not permit any other Loan Party to,
enter into, or cause, suffer or permit to exist any transaction, arrangement or contract with any of its other Affiliates (other
than the Loan Parties) which is on terms which are less favorable than are obtainable from any Person which is not one of its Affiliates.

 

11.8         Unconditional
Purchase Obligations.  Not, and not permit any other Loan Party to, enter into or be a party to any contract for
the purchase of materials, supplies or other property or services if such contract requires that payment be made by it regardless
of whether delivery is ever made of such materials, supplies or other property or services.

 

11.9         Inconsistent
Agreements.  Not, and not permit any other Loan Party to, enter into any agreement containing any provision which
would (a) be violated or breached by any borrowing by Borrower hereunder or by the performance by any Loan Party of any of
its Obligations hereunder or under any other Loan Document, (b) prohibit any Loan Party from granting to Administrative Agent
and the Lenders, a Lien on any of its assets or (c) create or permit to exist or become effective any encumbrance or restriction
on the ability of any Subsidiary to (i) pay dividends or make other distributions to Borrower or any other Subsidiary, or
pay any Debt owed to Borrower or any other Subsidiary, (ii) make loans or advances to any Loan Party or (iii) transfer
any of its assets or properties to any Loan Party, other than (a) customary restrictions and conditions contained in agreements
relating to the sale of all or a substantial part of the assets of any Subsidiary pending such sale, provided that such
restrictions and conditions apply only to the Subsidiary to be sold and such sale is permitted hereunder (b) restrictions
or conditions imposed by any agreement relating to purchase money Debt, Capital Leases and other secured Debt permitted by this
Agreement if such restrictions or conditions apply only to the property or assets securing such Debt and (c) customary provisions
in leases and other contracts restricting the assignment thereof.

 

11.10         Business
Activities; Issuance of Equity.  Not, and not permit any other Loan Party to, engage in any line of business other
than the businesses engaged in on the date hereof and businesses reasonably related thereto.  Not, and not permit any
other Loan Party to, issue any Capital Securities other than (a) any issuance of shares of Holdings or (b) any issuance
by a Subsidiary to Borrower or another Wholly-Owned Subsidiary in accordance with Section 11.4.

 

11.11         Investments.  Not,
and not permit any other Loan Party to, make or permit to exist any Investment in any other Person, except the following:

 

(a)          contributions
by Borrower to the capital of any domestic Wholly-Owned Subsidiary in existence on the Closing Date, or by any Subsidiary to the
capital of any other domestic Wholly-Owned Subsidiary in existence on the Closing Date, so long as the recipient of any such capital
contribution has guaranteed the Obligations and such guaranty is secured by a pledge of all of its Capital Securities and substantially
all of its real and personal property, in each case in accordance with Section 10.9;

 

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(b)          Investments
constituting Debt permitted by Section 11.1;

 

(c)          Contingent
Liabilities constituting Debt permitted by Section 11.1 or Liens permitted by Section 11.2;

 

(d)          Cash
Equivalent Investments;

 

(e)          Subject
to Section 10.10, bank deposits in the ordinary course of business;

 

(f)          Investments
in securities of Account Debtors received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of such Account Debtors;

 

(g)          Investments
listed on Schedule 11.11 as of the Closing Date;

 

(h)          loans
and advances to employees in the ordinary course of business not to exceed $100,000 in the aggregate at any time outstanding;

 

(i)          Investments
in securities of Account Debtors received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or
insolvency of such Account Debtors; and

 

(j)          other
Investments not exceeding $50,000 at any one time outstanding;

 

provided that (x) any Investment
which when made complies with the requirements of the definition of the term “Cash Equivalent Investment” may
continue to be held notwithstanding that such Investment if made thereafter would not comply with such requirements; (y) no
Investment otherwise permitted by clause (b) or (c) shall be permitted to be made if, immediately before or after giving effect
thereto, any Default or Event of Default exists.

 

11.12         Restriction
of Amendments to Certain Documents.  Not amend or otherwise modify, or waive any rights under any provisions of (a)
any Subordinated Debt (except to the extent permitted under the related Subordination Agreement), (b) the Colon Settlement Agreement,
or (c) the Omniglow Settlement Agreement.

 

11.13         Fiscal
Year.  Not change its Fiscal Year.

 

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11.14         Financial Covenants.

 

11.14.1         Fixed
Charge Coverage Ratio.  Not permit the Fixed Charge Coverage Ratio for any Computation Period to be less than the
applicable ratio set forth below for such Computation Period:

 

	Computation 
 Period Ending	 	Fixed Charge 
 Coverage Ratio
	 	 	 
	05/31/15	 	1.25 to 1.00
	06/30/15	 	1.25 to 1.00
	07/31/15	 	1.25 to 1.00
	08/31/15	 	1.25 to 1.00
	09/30/15	 	1.25 to 1.00
	10/31/15	 	1.25 to 1.00
	11/30/15	 	1.25 to 1.00
	12/31/15	 	1.25 to 1.00
	01/31/16	 	1.25 to 1.00
	02/29/16	 	1.25 to 1.00
	03/31/16	 	1.25 to 1.00
	04/30/16	 	1.25 to 1.00
	05/31/16	 	1.25 to 1.00
	06/30/16	 	1.25 to 1.00
	07/31/16	 	1.25 to 1.00
	08/31/16	 	1.25 to 1.00
	09/30/16	 	1.25 to 1.00
	10/31/16	 	1.25 to 1.00
	11/30/16	 	1.25 to 1.00
	12/31/16	 	1.25 to 1.00
	03/31/17 and the last day of each Fiscal Quarter thereafter	 	1.25 to 1.00

 

11.14.2         Reserved.

 

11.14.3         Senior
Debt to EBITDA Ratio.  Not permit the Senior Debt to EBITDA Ratio as of the last day of any Computation Period to
exceed the applicable ratio set forth below for such Computation Period:

 

	Computation 
 Period Ending	 	Senior Debt 
 to EBITDA Ratio
	 	 	 
	05/31/15	 	4.50 to 1.00
	06/30/15	 	4.25 to 1.00
	07/31/15	 	4.00 to 1.00
	08/31/15	 	4.00 to 1.00
	09/30/15	 	3.75 to 1.00

 

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	Computation 
 Period Ending	 	Senior Debt 
 to EBITDA Ratio
	 	 	 
	10/31/15	 	3.50 to 1.00
	11/30/15	 	3.50 to 1.00
	12/31/15	 	3.50 to 1.00
	01/31/16	 	3.50 to 1.00
	02/29/16	 	3.50 to 1.00
	03/31/16	 	3.50 to 1.00
	04/30/16	 	3.50 to 1.00
	05/31/16	 	3.50 to 1.00
	06/30/16	 	3.25 to 1.00
	07/31/16	 	3.25 to 1.00
	08/31/16	 	3.25 to 1.00
	09/30/16	 	3.00 to 1.00
	10/31/16	 	3.00 to 1.00
	11/30/16	 	3.00 to 1.00
	12/31/16	 	2.75 to 1.00
	03/31/17	 	2.50 to 1.00
	06/30/17	 	2.25 to 1.00
	09/30/17	 	2.00 to 1.00
	12/31/17	 	2.00 to 1.00
	03/31/18	 	1.75 to 1.00
	06/30/18	 	1.75 to 1.00
	09/30/18	 	1.75 to 1.00
	12/31/18	 	1.75 to 1.00
	03/31/19	 	1.50 to 1.00
	06/30/19	 	1.50 to 1.00
	09/30/19	 	1.50 to 1.00
	12/31/19 and the last day of each Fiscal Quarter thereafter	 	1.50 to 1.00

 

11.14.4         Capital
Expenditures.  Not permit the aggregate amount of all Capital Expenditures made by the Loan Parties in any Fiscal
Year to exceed the following amounts:

 

	Fiscal Year Ending	 	Capital Expenditures	 
	 	 	 	 
	12/31/15	 	$	1,250,000	 
	12/31/16	 	$	1,400,000	 
	12/31/17 and the last day of each Fiscal Year thereafter	 	$	1,500,000	 

 

11.14.5         EBITDA.  Not
permit EBITDA for any Computation Period to be less than the applicable amount set forth below for such Computation Period:

 

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	Computation 
 Period Ending	 	EBITDA	 
	05/31/15	 	$	4,750,000	 
	06/30/15	 	$	5,000,000	 
	07/31/15	 	$	5,250,000	 
	08/31/15	 	$	5,250,000	 
	09/30/15	 	$	5,250,000	 
	10/31/15	 	$	5,250,000	 
	11/30/15	 	$	5,250,000	 
	12/31/15	 	$	5,250,000	 
	01/31/16	 	$	5,500,000	 
	02/29/16	 	$	5,500,000	 
	03/31/16	 	$	5,500,000	 
	04/30/16	 	$	5,750,000	 
	05/31/16	 	$	5,750,000	 
	06/30/16	 	$	5,750,000	 
	07/31/16	 	$	5,750,000	 
	08/31/16	 	$	5,750,000	 
	09/30/16	 	$	5,750,000	 
	10/31/16	 	$	6,000,000	 
	11/30/16	 	$	6,000,000	 
	12/31/16	 	$	6,000,000	 
	03/31/17	 	$	6,250,000	 
	06/30/17	 	$	6,500,000	 
	09/30/17	 	$	6,750,000	 
	12/31/17	 	$	6,750,000	 
	03/31/18	 	$	6,750,000	 
	06/30/18	 	$	6,750,000	 
	09/30/18 and the last day of each Fiscal Quarter thereafter	 	$	7,000,000	 

 

11.15         Cancellation
of Debt.  Not, and not permit any other Loan Party to, cancel any claim or debt owing to it, except for reasonable
consideration or in the ordinary course of business, and except for the cancellation of debts or claims not to exceed $100,000
in any Fiscal Year.

 

11.16         Transfer
to Foreign Subsidiaries.  Not, and not permit any of the Loan Parties to, sell, transfer, assign (by operation of
law or otherwise), distribute, loan, advance, invest or otherwise dispose of, any money, assets or property in or to any foreign
Subsidiary, except for (i) not greater than $200,000 in the aggregate (such amount to be increased in the sole discretion of the
Administrative Agent) in cash per twelve month period to Cyalume France and (ii) sales of inventory to Cyalume France on arm’s-length
terms, in the ordinary course of business and consistent with past practice.

 

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11.17         Compliance
with Laws.  Not, and not permit any of the Loan Parties, to fail to comply with the laws, regulations and executive
orders referred to in Sections 9.25 and 9.26.

 

11.18         French
Accounts.  Not, and not permit any of the Loan Parties to, maintain more than $500,000 in the aggregate at any time
in foreign deposit accounts or foreign securities accounts.  

 

11.19         French
Subsidiary.  Not permit Cyalume France to engage in or carry out any activities that fall under any of the items
listed under article R.153-2 of the French monetary and financial code.  

 

Section 12EFFECTIVENESS;
CONDITIONS OF LENDING, ETC.

 

The obligation of each
Lender to make its Loans and of the Issuing Lenders to issue Letters of Credit is subject to the following conditions precedent:

 

12.1         Initial
Credit Extension.  The obligation of the Lenders to make the initial Loans and the obligation of the Issuing Lenders
to issue their initial Letters of Credit (whichever first occurs) is, in addition to the conditions precedent specified in Section 12.2,
subject to the conditions precedent that (a) all Debt to be Repaid has been (or concurrently with the initial borrowing will
be) paid in full, and that all agreements and instruments governing the Debt to be Repaid and that all Liens securing such Debt
to be Repaid have been (or concurrently with the initial borrowing will be) terminated; (b) Borrower’s aggregate amount of
Subordinated Debt is not greater than $752,500; and (c) Administrative Agent shall have received all of the following,
each duly executed and dated the Closing Date (or such earlier date as shall be reasonably satisfactory to Administrative Agent),
in form and substance reasonably satisfactory to Administrative Agent (and the date on which all such conditions precedent have
been satisfied or waived in writing by Administrative Agent and the Lenders is called the “Closing Date”):

 

12.1.1           Agreement,
Notes and other Loan Documents.  This Agreement and, to the extent requested by any Lender, a Note made payable to
such Lender, and all other Loan Documents.

 

12.1.2           Authorization
Documents.  For each Loan Party, such Person’s (a) charter (or similar formation document), certified
by the appropriate governmental authority; (b) good standing certificates in its state of incorporation (or formation) and
in each other state requested by Administrative Agent; (c) bylaws (or similar governing document); (d) resolutions of
its board of directors (or similar governing body) approving and authorizing such Person’s execution, delivery and performance
of the Loan Documents to which it is party and the transactions contemplated thereby; and (e) signature and incumbency certificates
of its officers executing any of the Loan Documents (it being understood that Administrative Agent and each Lender may conclusively
rely on each such certificate until formally advised by a like certificate of any changes therein), all certified by its secretary
or an assistant secretary (or similar officer) as being in full force and effect without modification.

 

12.1.3           Consents,
etc.  Certified copies of all documents evidencing any necessary corporate or partnership action, consents and governmental
approvals (if any) required for the execution, delivery and performance by the Loan Parties of the documents referred to in this
Section 12.

 

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12.1.4           Letter
of Direction. A letter of direction containing funds flow information with respect to the proceeds of the Loans on the Closing
Date.

 

12.1.5           Guaranty
and Collateral Agreement. A counterpart of the Guaranty and Collateral Agreement executed by each Loan Party, together with
all instruments, transfer powers and other items required to be delivered in connection therewith.

 

12.1.6           Perfection
Certificate. A Perfection Certificate completed and executed by each Loan Party.

 

12.1.7           Colon
Debt.

 

(a)          Certified
copy of the promissory note evidencing the Colon Debt.

 

12.1.8           Collateral
Access Agreements.

 

(a)          In
the case of any leased real property, a Collateral Access Agreement from the landlord of such property waiving any landlord’s
Lien in respect of personal property kept at the premises subject to such lease.

 

(b)          A
Collateral Access Agreement with respect to each bailee with which Borrower or any Subsidiary keeps Inventory or other assets that
are required under the Guaranty and Collateral Agreement to be delivered on the Closing Date.

 

12.1.9           Control
Agreements. All deposit account control agreements and securities account control agreements that are required under the Guaranty
and Collateral Agreement to be delivered on the Closing Date.

 

12.1.10         Opinions
of Counsel. Opinions of counsel for each Loan Party, including local counsel reasonably requested by Administrative Agent.

 

12.1.11         Insurance.
Evidence of the existence of insurance required to be maintained pursuant to Section 10.3(b), together with evidence
that Administrative Agent has been named as a lender’s loss payee and an additional insured on all related insurance policies.

 

12.1.12         Payment
of Fees. Evidence of payment by Borrower of all accrued and unpaid fees, costs and expenses to the extent then due and payable
on the Closing Date (including, without limitation, fees under the Agent Fee Letter), together with all Attorney Costs of Administrative
Agent to the extent invoiced prior to the Closing Date, plus such additional amounts of Attorney Costs as shall constitute Administrative
Agent’s reasonable estimate of Attorney Costs incurred or to be incurred by Administrative Agent through the closing proceedings
(provided that such estimate shall not thereafter preclude final settling of accounts between Borrower and Administrative Agent).

 

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12.1.13         Solvency
Certificate. A Solvency Certificate executed by a Senior Officer of Borrower.

 

12.1.14         Pro
Forma. A consolidated pro forma balance
sheet of Borrower as at the Closing Date, adjusted to give effect to the consummation of the financings contemplated hereby as
if such transactions had occurred on such date, consistent in all material respects with the sources and uses of cash as previously
described to the Lenders and the forecasts previously provided to the Lenders.

 

12.1.15         Environmental
Reports. Environmental site assessment reports requested by Administrative Agent.

 

12.1.16         Search
Results; Lien Terminations. Certified copies of Uniform Commercial Code search reports dated a date reasonably near to the
Closing Date, listing all effective financing statements which name any Loan Party (under their present names and any previous
names) as debtors, together with (a) copies of such financing statements, (b) payoff letters evidencing repayment in
full of all Debt to be Repaid, the termination of all agreements relating thereto and the release of all Liens granted in connection
therewith, with Uniform Commercial Code or other appropriate termination statements and documents effective to evidence the foregoing
(other than Liens permitted by Section 11.2) and (c) such other Uniform Commercial Code termination statements
as Administrative Agent may reasonably request.

 

12.1.17         Filings,
Registrations and Recordings. Administrative Agent shall have received each document (including Uniform Commercial Code financing
statements) required by the Collateral Documents or under law or reasonably requested by Administrative Agent to be filed, registered
or recorded in order to create in favor of Administrative Agent, for the benefit of the Lenders, a perfected Lien on the collateral
described therein, prior to any other Liens (subject only to Liens permitted pursuant to Section 11.2), in proper form
for filing, registration or recording.

 

12.1.18         Closing
Certificate, Consents and Permits. A certificate executed by an officer of Borrower on behalf of Borrower certifying the matters
set forth in Section 12.2.1 and certain other matters requested by the Administrative Agent as of the Closing Date.

 

12.1.19         Financial
Statements. Administrative Agent shall have received and been reasonably satisfied with such financial statements of Loan Parties
requested by Administrative Agent, including, without limitation, through the most recent year-to-date interim period.

 

12.1.20         No
Material Adverse Change. There shall not have occurred since December 31, 2014, any developments or events which individually
or in the aggregate with other such circumstances has had or could reasonably be expected to have a Material Adverse Effect.

 

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12.1.21         Investment
Documents. The Administrative Agent shall have received confirmation of ownership and capital structure of the Loan Parties
and be satisfied with the constituent documents of the Loan Parties and related investment agreements. Monroe Capital and/or Affiliates
thereof shall have received Capital Securities of Holdings in an amount, and in form and substance, reasonably acceptable to Administrative
Agent.

 

12.1.22         Employment
Agreements; Validity and Support Agreements. Receipt by the Administrative Agent of employment agreements and validity and
support agreements for certain key management and shareholders of the Loan Parties duly executed and delivered by each party thereto,
in each case, in form and substance reasonably satisfactory to the Administrative Agent.

 

12.1.23         Financial
Tests. Administrative Agent shall have received evidence reasonably satisfactory to it that (a) Loan Parties shall have a trailing
twelve (12) month EBITDA of at least $5,100,000 as of March 31, 2015, on a pro forma basis after giving effect to (i) the
funding of the initial Loans as provided hereunder and the use of proceeds thereof, including the payment of all fees, costs and
expenses as set forth above, and (ii) year-end and other adjustments reasonably satisfactory to the Administrative Agent, (b) an
accounting firm reasonably acceptable to Administrative Agent has verified the foregoing clause (a), and (c) the Loan Parties shall
have sufficient liquidity to operate their business plan (assuming that all accounts payable, taxes and other obligations are paid
current in accordance with the Loan Parties’ historical business practices) after giving effect to the funding of the initial
Loans as provided hereunder and the use of the proceeds thereof, including the payment of all fees, costs and expenses as set forth
above.

 

12.1.24         Diligence.
The Administrative Agent shall have received all due diligence materials as Administrative Agent has requested and Administrative
Agent shall have found such due diligence satisfactory to it, including, without limitation, material contracts, service contracts,
orders and existing backlog (including, but not limited to, American Rheinmetall Munitions purchase orders and contracts).

 

12.1.25         Condition.
Administrative Agent shall have completed a satisfactory examination of the condition of the Loan Parties, including, without limitation,
review of (a) the books, records and assets of the Loan Parties, (b) a special purpose review of the Loan Parties' historical cash
flow, trailing twelve month EBITDA and EBITDA adjustments, conducted by a firm and in form and substance reasonably acceptable
to Administrative Agent.

 

12.1.26         Background
Checks. Administrative Agent shall have reviewed and shall have been satisfied with background checks on certain key management
and shareholders of Loan Parties.

 

12.1.27         Approvals.
Administrative Agent shall have received approval of its executive credit committee.

 

12.1.28         Maximum
Revolving Outstandings. After giving effect to the initial Loans on the Closing Date, there shall not be more than $3,000,000
of Revolving Outstandings.

 

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12.1.29         Borrowing
Base Certificate. A Borrowing Base Certificate dated as of the Closing Date.

 

12.1.30         Other.
Such other documents as Administrative Agent or any Lender may reasonably request.

 

12.2        Conditions.
The obligation (a) of each Lender to make each Loan and (b) of the Issuing Lenders to issue each Letter of Credit is
subject to the following further conditions precedent that:

 

12.2.1           Compliance
with Warranties, No Default, etc. Both before and after giving effect to any borrowing and the issuance of any Letter of Credit,
the following statements shall be true and correct:

 

(a)          (i) with
respect to Loans advanced on the Closing Date, the representations and warranties of each Loan Party set forth in this Agreement
and the other Loan Documents shall be true and correct in all respects with the same effect as if then made (except to the extent
stated to relate to a specific earlier date, in which case such representations and warranties shall be true and correct as of
such earlier date), and (ii) with respect to any Loans advanced or Letters of Credit issued after the Closing Date, the representations
and warranties of each Loan Party set forth in this Agreement and the other Loan Documents shall be true and correct in all material
respects with the same effect as if then made (except (x) to the extent stated to relate to a specific earlier date, in which case
such representations and warranties shall be true and correct in all material respects as of such earlier date, and (y) to the
extent such representation or warranty is qualified by materiality or Material Adverse Effect, in which case such representations
and warranties shall be true and correct in all respects);

 

(b)          no
Default or Event of Default shall have then occurred and be continuing;

 

(c)          the
Loan Parties shall be in compliance on a pro forma basis with the financial covenants set forth in Section 11.14 computed
using the covenant levels and financial information for the most recently ended month or quarter, as applicable, for which information
is available (assuming for such purpose that the required covenant levels as of any date occurring prior to May 31, 2015 are the
same levels required for the Computation Period ending May 31, 2015); and

 

(d)          prior
to funding any Delayed Draw Term Loan, the Administrative Agent shall have received a fully executed acknowledgment from the parties
to the Omniglow Settlement Agreement, in form and substance satisfactory to the Administrative Agent, that shall provide that the
making of the Omniglow Settlement Payment shall (i) satisfy all of the Loan Parties’ obligations under the Omniglow Settlement
Agreement and under the “Amended Final Judgment” (as defined in the Omniglow Settlement Agreement), and (ii) cause
the release of the Loan Parties set forth in Section 8(a) of the Omniglow Settlement Agreement to become automatically effective.

 

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12.2.2           Confirmatory
Certificate. If requested by Administrative Agent or any Lender, Administrative Agent shall have received (in sufficient counterparts
to provide one to each Lender) a certificate dated the date of such requested Loan or Letter of Credit and signed by a duly authorized
representative of Borrower as to the matters set out in Section 12.2.1 (it being understood that each request by Borrower
for the making of a Loan or the issuance of a Letter of Credit shall be deemed to constitute a representation and warranty by Borrower
that the conditions precedent set forth in Section 12.2.1 will be satisfied at the time of the making of such Loan
or the issuance of such Letter of Credit), together with such other documents as Administrative Agent or any Lender may reasonably
request in support thereof.

 

Section 13EVENTS
OF DEFAULT AND THEIR EFFECT.

 

13.1        Events
of Default. Each of the following shall constitute an Event of Default under this Agreement:

 

13.1.1           Non-Payment
of the Loans, etc. Default in the payment when due of the principal of any Loan; or default, and continuance thereof for five
(5) days, in the payment when due of any interest, fee, reimbursement obligation with respect to any Letter of Credit or other
amount payable by any Loan Party hereunder or under any other Loan Document.

 

13.1.2           Non-Payment
of Other Debt. Any default shall occur under the terms applicable to any Debt of any Loan Party in an aggregate amount (for
all such Debt so affected and including undrawn committed or available amounts and amounts owing to all creditors under any combined
or syndicated credit arrangement) exceeding $100,000 and such default shall (a) consist of the failure to pay such Debt when
due, whether by acceleration or otherwise and after the expiration of any grace periods applicable thereto, or (b) accelerate
the maturity of such Debt or permit the holder or holders thereof, or any trustee or agent for such holder or holders, to cause
such Debt to become due and payable (or require any Loan Party to purchase or redeem such Debt or post cash collateral in respect
thereof) prior to its expressed maturity.

 

13.1.3           Other
Material Obligations. Default in the payment when due and after the expiration of any grace periods applicable thereto, or
in the performance or observance of, any material obligation of, or condition agreed to by, any Loan Party with respect to any
material purchase or lease of goods or services where such default, singly or in the aggregate with all other such defaults, might
reasonably be expected to have a Material Adverse Effect.

 

13.1.4           Bankruptcy,
Insolvency, etc. Any Loan Party becomes insolvent or generally fails to pay, or admits in writing its inability or refusal
to pay, debts as they become due; or any Loan Party applies for, consents to, or acquiesces in the appointment of a trustee, receiver
or other custodian for such Loan Party or any property thereof, or makes a general assignment for the benefit of creditors; or,
in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is appointed for any Loan Party
or for a substantial part of the property of any thereof and is not discharged within sixty (60) days; or any bankruptcy, reorganization,
debt arrangement, or other case or proceeding under any bankruptcy or insolvency law, or any dissolution or liquidation proceeding,
is commenced in respect of any Loan Party, and if such case or proceeding is not commenced by such Loan Party, it is consented
to or acquiesced in by such Loan Party, or remains for sixty (60) days undismissed; or any Loan Party takes any action to
authorize, or in furtherance of, any of the foregoing.

 

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13.1.5           Non-Compliance
with Loan Documents. (a) Failure by any Loan Party to comply with or to perform any covenant set forth in Sections 10.1,
10.2, 10.3(b), 10.3(c), 10.5, 10.6, 10.12, 10.13 or Section 11; or (b) failure
by any Loan Party to comply with or to perform any other provision of this Agreement or any other Loan Document (and not constituting
an Event of Default under any other provision of this Section 13) and continuance of such failure described in this
clause (b) for fifteen (15) days.

 

13.1.6           Representations;
Warranties. Any representation or warranty made by any Loan Party herein or any other Loan Document is breached or is false
or misleading in any material respect, or any schedule, certificate, financial statement, report, notice or other writing furnished
by any Loan Party to Administrative Agent or any Lender in connection herewith is false or misleading in any material respect on
the date as of which the facts therein set forth are stated or certified.

 

13.1.7           Pension
Plans. (a) Any Person institutes steps to terminate a Pension Plan if as a result of such termination Borrower or any
member of the Controlled Group could be required to make a contribution to such Pension Plan, or could incur a liability or obligation
to such Pension Plan, in excess of $100,000; (b) a contribution failure occurs with respect to any Pension Plan sufficient
to give rise to a Lien under Section 302(f) of ERISA; (c) the Unfunded Liability exceeds 20% of the Total Plan Liability,
or (d) there shall occur any withdrawal or partial withdrawal from a Multiemployer Pension Plan and the withdrawal liability (without
unaccrued interest) to Multiemployer Pension Plans as a result of such withdrawal (including any outstanding withdrawal liability
that Borrower or any member of the Controlled Group have incurred on the date of such withdrawal) exceeds $100,000.

 

13.1.8           Judgments.
Final judgments or awards which exceed an aggregate of $150,000 shall be rendered against any Loan Party (not covered by insurance
as to which the insurance company has acknowledged coverage, provided, however, that such insurance shall have been paid to Borrower
within thirty (30) days of the rendering of such judgment), and shall not have been paid, discharged or vacated or had execution
thereof stayed pending appeal within thirty (30) days after entry or filing of such judgments.

 

13.1.9           Invalidity
of Collateral Documents, etc. Any Collateral Document shall cease to be in full force and effect; or any Loan Party (or any
Person by, through or on behalf of any Loan Party) shall contest in any manner the validity, binding nature or enforceability of
any Collateral Document.

 

13.1.10         Invalidity
of Subordination Provisions, etc. Any subordination provision in any document or instrument governing Subordinated Debt, or
any subordination provision in any subordination agreement that relates to any Subordinated Debt, or any subordination provision
in any guaranty by any Loan Party of any Subordinated Debt, shall cease to be in full force and effect, or any Loan Party or any
other Person (including the holder of any applicable Subordinated Debt) shall contest in any manner the validity, binding nature
or enforceability of any such provision.

 

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13.1.11         Change
of Control. A Change of Control shall occur.

 

13.1.12         Public
Company Failure. Holdings’ Capital Securities fail to remain registered with the SEC in good standing, and/or such Capital
Securities fail to remain publicly traded on and registered with a public securities exchange.

 

13.1.13         Material
Adverse Effect. The occurrence of any event having a Material Adverse Effect.

 

13.1.14         Regulatory
Violation. A “Regulatory Violation” (as defined in the SBIC Regulatory Side Letter) shall occur.

 

13.1.15         Settlement
Agreements. Default in the payment when due, or in the performance or observance of, any obligation of, or condition agreed
to by, any Loan Party under the Colon Settlement Agreement or Omniglow Settlement Agreement.

 

13.2        Effect
of Event of Default. If any Event of Default described in Section 13.1.4 shall occur, the Commitments shall immediately
terminate and the Loans and all other Obligations hereunder shall become immediately due and payable and Borrower shall become
immediately obligated to Cash Collateralize all Letters of Credit, all without presentment, demand, protest or notice of any kind;
and, if any other Event of Default shall occur and be continuing, Administrative Agent may (and, upon the written request of the
Required Lenders shall) declare the Commitments to be terminated in whole or in part and/or declare all or any part of the Loans
and all other Obligations hereunder to be due and payable and/or demand that Borrower immediately Cash Collateralize all or any
Letters of Credit, whereupon the Commitments shall immediately terminate (or be reduced, as applicable) and/or the Loans and other
Obligations hereunder shall become immediately due and payable (in whole or in part, as applicable) and/or Borrower shall immediately
become obligated to Cash Collateralize the Letters of Credit (all or any, as applicable), all without presentment, demand, protest
or notice of any kind. Administrative Agent shall promptly advise Borrower of any such declaration, but failure to do so shall
not impair the effect of such declaration. Any cash collateral delivered hereunder shall be held by Administrative Agent (without
liability for interest thereon) and applied to the Obligations arising in connection with any drawing under a Letter of Credit.
After the expiration or termination of all Letters of Credit, such cash collateral shall be applied by Administrative Agent to
any remaining Obligations hereunder and any excess shall be delivered to Borrower or as a court of competent jurisdiction may elect.

 

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13.3         Credit
Bidding. The Loan Parties and the Lenders hereby irrevocably authorize (and by entering into a Bank Product Agreement, each
Bank Product provider shall be deemed to authorize) Administrative Agent, based upon the instruction of the Required Lenders, to
Credit Bid and purchase (either directly or through one or more acquisition vehicles) all or any portion of the Collateral (and
the Loan Parties shall approve Administrative Agent as a qualified bidder and such Credit Bid as qualified bid) at any sale thereof
conducted by Administrative Agent, based upon the instruction of the Required Lenders, under any provisions of the Uniform Commercial
Code, as part of any sale or investor solicitation process conducted by any Loan Party, any interim receiver, receiver, receiver
and manager, administrative receiver, trustee, agent or other Person pursuant or under any insolvency laws; provided, however,
that (i) the Required Lenders may not direct Administrative Agent in any manner that does not treat each of the Lenders equally,
without preference or discrimination, in respect of consideration received as a result of the Credit Bid, (ii) the acquisition
documents shall be commercially reasonable and contain customary protections for minority holders, such as, among other things,
anti-dilution and tag-along rights, (iii) the exchanged debt or equity securities must be freely transferable, without restriction
(subject to applicable securities laws) and (iv) reasonable efforts shall be made to structure the acquisition in a manner
that causes the governance documents pertaining thereto to not impose any obligations or liabilities upon the Lenders individually
(such as indemnification obligations).

 

For purposes of the preceding
sentence, the term “Credit Bid” shall mean, an offer submitted by Administrative Agent (on behalf of the Lender
group), based upon the instruction of the Required Lenders, to acquire the property of any Loan Party or any portion thereof in
exchange for and in full and final satisfaction of all or a portion (as determined by Administrative Agent, based upon the instruction
of the Required Lenders) of the claims and Obligations under this Agreement and other Loan Documents.

 

Section 14THE
AGENT.

 

14.1         Appointment
and Authorization. Each Lender hereby irrevocably (subject to Section 14.10) appoints, designates and authorizes
Administrative Agent to take such action on its behalf under the provisions of this Agreement and each other Loan Document and
to exercise such powers and perform such duties as are expressly delegated to it by the terms of this Agreement or any other Loan
Document, together with such powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary contained
elsewhere in this Agreement or in any other Loan Document, Administrative Agent shall not have any duty or responsibility except
those expressly set forth herein, nor shall Administrative Agent have or be deemed to have any fiduciary relationship with any
Lender or participant, and no implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against Administrative Agent. Without limiting the generality
of the foregoing sentence, the use of the term “agent” herein and in other Loan Documents with reference to Administrative
Agent is not intended to connote any fiduciary or other implied (or express) obligations arising under agency doctrine of any applicable
law. Instead, such term is used merely as a matter of market custom, and is intended to create or reflect only an administrative
relationship between independent contracting parties.

 

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14.2         Issuing
Lenders. The Issuing Lenders shall act on behalf of the Lenders (according to their Pro Rata Shares) with respect to any Letters
of Credit issued by them and the documents associated therewith. The Issuing Lenders shall have all of the benefits and immunities
(a) provided to Administrative Agent in this Section 14 with respect to any acts taken or omissions suffered by
the Issuing Lenders in connection with Letters of Credit issued by them or proposed to be issued by them and the applications and
agreements for letters of credit pertaining to such Letters of Credit as fully as if the term “Administrative Agent”,
as used in this Section 14, included the Issuing Lenders with respect to such acts or omissions and (b) as additionally
provided in this Agreement with respect to the Issuing Lenders.

 

14.3         Delegation
of Duties. Administrative Agent may execute any of its duties under this Agreement or any other Loan Document by or through
agents, employees or attorneys-in-fact and shall be entitled to advice of counsel and other consultants or experts concerning all
matters pertaining to such duties. Administrative Agent shall not be responsible for the negligence or misconduct of any agent
or attorney-in-fact that it selects in the absence of gross negligence or willful misconduct.

 

14.4         Exculpation
of Administrative Agent. None of Administrative Agent nor any of its directors, officers, employees or agents shall (a) be
liable for any action taken or omitted to be taken by any of them under or in connection with this Agreement or any other Loan
Document or the transactions contemplated hereby (except to the extent resulting from its own gross negligence or willful misconduct
in connection with its duties expressly set forth herein as determined by a final, nonappealable judgment by a court of competent
jurisdiction), or (b) be responsible in any manner to any Lender or participant for any recital, statement, representation
or warranty made by any Loan Party or Affiliate of Borrower, or any officer thereof, contained in this Agreement or in any other
Loan Document, or in any certificate, report, statement or other document referred to or provided for in, or received by Administrative
Agent under or in connection with, this Agreement or any other Loan Document, or the validity, effectiveness, genuineness, enforceability
or sufficiency of this Agreement or any other Loan Document (or the creation, perfection or priority of any Lien or security interest
therein), or for any failure of Borrower or any other party to any Loan Document to perform its Obligations hereunder or thereunder.
Administrative Agent shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance
of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or to inspect the properties,
books or records of Borrower or any of Borrower’s Subsidiaries or Affiliates.

 

14.5         Reliance
by Administrative Agent. Administrative Agent shall be entitled to rely, and shall be fully protected in relying, upon any
writing, communication, signature, resolution, representation, notice, consent, certificate, electronic mail message, affidavit,
letter, telegram, facsimile, telex or telephone message, statement or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or Persons, and upon advice and statements of legal counsel
(including counsel to Borrower), independent accountants and other experts selected by Administrative Agent. Administrative Agent
shall be fully justified in failing or refusing to take any action under this Agreement or any other Loan Document unless it shall
first receive such advice or concurrence of the Required Lenders as it deems appropriate and, if it so requests, confirmation from
the Lenders of their obligation to indemnify Administrative Agent against any and all liability and expense which may be incurred
by it by reason of taking or continuing to take any such action. Administrative Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement or any other Loan Document in accordance with a request or consent of
the Required Lenders and such request and any action taken or failure to act pursuant thereto shall be binding upon each Lender.
For purposes of determining compliance with the conditions specified in Section 12, each Lender that has signed this
Agreement shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to a Lender unless Administrative Agent shall have received
written notice from such Lender prior to the proposed Closing Date specifying its objection thereto.

 

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14.6         Notice
of Default. Administrative Agent shall not be deemed to have knowledge or notice of the occurrence of any Event of Default
or Default except with respect to defaults in the payment of principal, interest and fees required to be paid to Administrative
Agent for the account of the Lenders, unless Administrative Agent shall have received written notice from a Lender or Borrower
referring to this Agreement, describing such Event of Default or Default and stating that such notice is a “notice of default”.
Administrative Agent will notify the Lenders of its receipt of any such notice. Administrative Agent shall take such action with
respect to such Event of Default or Default as may be requested by the Required Lenders in accordance with Section 13;
provided that unless and until Administrative Agent has received any such request, Administrative Agent may (but shall not
be obligated to) take any action, or refrain from taking any action, with respect to such Event of Default or Default as it shall
deem advisable or in the best interest of the Lenders.

 

14.7         Credit
Decision. Each Lender acknowledges that Administrative Agent has not made any representation or warranty to it, and that no
act by Administrative Agent hereafter taken, including any consent and acceptance of any assignment or review of the affairs of
the Loan Parties, shall be deemed to constitute any representation or warranty by Administrative Agent to any Lender as to any
matter, including whether Administrative Agent has disclosed material information in its possession. Each Lender represents to
Administrative Agent that it has, independently and without reliance upon Administrative Agent and based on such documents and
information as it has deemed appropriate, made its own appraisal of and investigation into the business, prospects, operations,
property, financial and other condition and creditworthiness of the Loan Parties, and made its own decision to enter into this
Agreement and to extend credit to Borrower hereunder. Each Lender also represents that it will, independently and without reliance
upon Administrative Agent and based on such documents and information as it shall deem appropriate at the time, continue to make
its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents,
and to make such investigations as it deems necessary to inform itself as to the business, prospects, operations, property, financial
and other condition and creditworthiness of Borrower. Except for notices, reports and other documents expressly herein required
to be furnished to the Lenders by Administrative Agent, Administrative Agent shall not have any duty or responsibility to provide
any Lender with any credit or other information concerning the business, prospects, operations, property, financial or other condition
or creditworthiness of Borrower which may come into the possession of Administrative Agent.

 

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14.8         Indemnification.
Whether or not the transactions contemplated hereby are consummated, each Lender shall indemnify upon demand Administrative Agent
and its directors, officers, employees and agents (to the extent not reimbursed by or on behalf of Borrower and without limiting
the obligation of Borrower to do so), according to its applicable Pro Rata Share, from and against any and all Indemnified Liabilities
(as hereinafter defined); provided that no Lender shall be liable for any payment to any such Person of any portion of the
Indemnified Liabilities to the extent determined by a final, nonappealable judgment by a court of competent jurisdiction to have
resulted from the applicable Person’s own gross negligence or willful misconduct. No action taken in accordance with the
directions of the Required Lenders shall be deemed to constitute gross negligence or willful misconduct for purposes of this Section.
Without limitation of the foregoing, each Lender shall reimburse Administrative Agent upon demand for its ratable share of any
costs or out-of-pocket expenses (including Attorney Costs and Taxes) incurred by Administrative Agent in connection with the preparation,
execution, delivery, administration, modification, amendment or enforcement (whether through negotiations, legal proceedings or
otherwise) of, or legal advice in respect of rights or responsibilities under, this Agreement, any other Loan Document, or any
document contemplated by or referred to herein, to the extent that Administrative Agent is not reimbursed for such expenses by
or on behalf of Borrower. The undertaking in this Section shall survive repayment of the Loans, cancellation of the Notes,
expiration or termination of the Letters of Credit, any foreclosure under, or modification, release or discharge of, any or all
of the Collateral Documents, termination of this Agreement and the resignation or replacement of Administrative Agent.

 

14.9         Administrative
Agent in Individual Capacity. Monroe Capital and its Affiliates may make loans to, issue letters of credit for the account
of, accept deposits from, acquire equity interests in and generally engage in any kind of banking, trust, financial advisory, underwriting
or other business with the Loan Parties and Affiliates as though Monroe Capital were not Administrative Agent hereunder and without
notice to or consent of any Lender. Each Lender acknowledges that, pursuant to such activities, Monroe Capital or its Affiliates
may receive information regarding Borrower or its Affiliates (including information that may be subject to confidentiality obligations
in favor of Borrower or such Affiliate) and acknowledges that Administrative Agent shall be under no obligation to provide such
information to them. With respect to their Loans (if any), Monroe Capital and its Affiliates shall have the same rights and powers
under this Agreement as any other Lender and may exercise the same as though Monroe Capital were not Administrative Agent, and
the terms “Lender” and “Lenders” include Monroe Capital and its Affiliates, to the extent applicable, in
their individual capacities.

 

14.10         Successor
Administrative Agent. Administrative Agent may resign as Administrative Agent upon thirty (30) days’ notice to
the Lenders. If Administrative Agent resigns under this Agreement, the Required Lenders shall, with (so long as no Default or Event
of Default exists) the consent of Borrower (which shall not be unreasonably withheld or delayed), appoint from among the Lenders
a successor agent for the Lenders. If no successor agent is appointed prior to the effective date of the resignation of Administrative
Agent, Administrative Agent may appoint, after consulting with the Lenders and Borrower, a successor agent from among the Lenders.
Upon the acceptance of its appointment as successor agent hereunder, such successor agent shall succeed to all the rights, powers
and duties of the retiring Administrative Agent and the term “Administrative Agent” shall mean such successor agent,
and the retiring Administrative Agent’s appointment, powers and duties as Administrative Agent shall be terminated. After
any retiring Administrative Agent’s resignation hereunder as Administrative Agent, the provisions of this Section 14
and Sections 15.5 and 15.17 shall inure to its benefit as to any actions taken or omitted to be taken by it
while it was Administrative Agent under this Agreement. If no successor agent has accepted appointment as Administrative Agent
by the date which is thirty (30) days following a retiring Administrative Agent’s notice of resignation, the retiring
Administrative Agent’s resignation shall nevertheless thereupon become effective and the Lenders shall perform all of the
duties of Administrative Agent hereunder until such time, if any, as the Required Lenders appoint a successor agent as provided
for above.

 

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14.11         Collateral
Matters. Each Lender authorizes and directs Administrative Agent to enter into the other Loan Documents for the benefit of
Lenders. Each Lender hereby agrees that, except as otherwise set forth herein, any action taken by Administrative Agent or Required
Lenders in accordance with the provisions of this Agreement or the other Loan Documents, and the exercise by the Administrative
Agent or Required Lenders of the powers set forth herein or therein, together with such other powers as are reasonably incidental
thereto, shall be authorized and binding upon all Lenders. Administrative Agent is hereby authorized on behalf of all Lenders,
without the necessity of any notice to or further consent from any Lender to take any action with respect to any Collateral or
Loan Documents which may be necessary to perfect and maintain perfected the Liens upon the Collateral granted pursuant to this
Agreement and the other Loan Documents. The Lenders irrevocably authorize Administrative Agent, at its option and in its discretion,
(a) to release any Lien granted to or held by Administrative Agent under any Collateral Document (i) upon termination
of the Commitments and payment in full of all Loans and all other outstanding obligations of Borrower hereunder and the expiration
or termination or Cash Collateralization of all Letters of Credit; (ii) constituting property sold or to be sold or disposed
of as part of or in connection with any disposition permitted hereunder (including the release of any guarantor); or (iii) subject
to Section 15.1, if approved, authorized or ratified in writing by the Required Lenders; or (b) to subordinate
its interest in any Collateral to any holder of a Lien on such Collateral which is permitted by Section 11.2(d)(i)
or (d)(iii) (it being understood that Administrative Agent may conclusively rely on a certificate from Borrower in determining
whether the Debt secured by any such Lien is permitted by Section 11.1(b)). Upon request by Administrative Agent at
any time, the Lenders will confirm in writing Administrative Agent’s authority to release, or subordinate its interest in,
particular types or items of Collateral pursuant to this Section 14.11. Each Lender hereby authorizes Administrative
Agent to give blockage notices in connection with any Subordinated Debt.

 

14.12         Restriction
on Actions by Lenders. Each Lender agrees that it shall not, without the express written consent of Administrative Agent, and
shall, upon the written request of Administrative Agent (to the extent it is lawfully entitled to do so), set off against the Obligations,
any amounts owing by such Lender to a Loan Party or any deposit accounts of any Loan Party now or hereafter maintained with such
Lender. Each of the Lenders further agrees that it shall not, unless specifically requested to do so in writing by Administrative
Agent, take or cause to be taken, any action, including the a commencement of any legal or equitable proceedings to foreclose any
loan or otherwise enforce any security interest in any of the Collateral or to enforce all or any part of this Agreement or the
other Loan Documents. All enforcement actions under this Agreement and the other Loan Documents against the Loan Parties or any
third party with respect to the Obligations or the Collateral may only be taken by Administrative Agent (at the direction of the
Required Lenders or as otherwise permitted in this Agreement) or by its agents at the direction of Administrative Agent.

 

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14.13       Administrative
Agent May File Proofs of Claim. In case of the pendency of any receivership, insolvency, liquidation, bankruptcy, reorganization,
arrangement, adjustment, composition or other judicial proceeding relative to any Loan Party, Administrative Agent (irrespective
of whether the principal of any Loan shall then be due and payable as herein expressed or by declaration or otherwise and irrespective
of whether Administrative Agent shall have made any demand on Borrower) shall be entitled and empowered, by intervention in such
proceeding or otherwise:

 

(a)          to
file and prove a claim for the whole amount of the principal and interest owing and unpaid in respect of the Loans, and all other
Obligations that are owing and unpaid and to file such other documents as may be necessary or advisable in order to have the claims
of the Lenders and Administrative Agent (including any claim for the reasonable compensation, expenses, disbursements and advances
of the Lenders and Administrative Agent and their respective agents and counsel and all other amounts due the Lenders and Administrative
Agent under Sections 5, 15.5 and 15.17) allowed in such judicial proceedings; and

 

(b)          to
collect and receive any monies or other property payable or deliverable on any such claims and to distribute the same;

 

and any custodian, receiver, assignee, trustee,
liquidator, sequestrator or other similar official in any such judicial proceeding is hereby authorized by each Lender to make
such payments to Administrative Agent and, in the event that Administrative Agent shall consent to the making of such payments
directly to the Lenders, to pay to Administrative Agent any amount due for the reasonable compensation, expenses, disbursements
and advances of Administrative Agent and its agents and counsel, and any other amounts due Administrative Agent under Sections 5,
15.5 and 15.17.

 

Nothing contained herein
shall be deemed to authorize Administrative Agent to authorize or consent to or accept or adopt on behalf of any Lender any plan
of reorganization, arrangement, adjustment or composition affecting the Obligations or the rights of any Lender or to authorize
Administrative Agent to vote in respect of the claim of any Lender in any such proceeding.

 

14.14         Other
Agents; Arrangers and Managers. None of the Lenders or other Persons identified on the facing page or signature pages
of this Agreement as a “syndication agent,” “documentation agent,” “co-agent,” “book
manager,” “lead manager,” “arranger,” “lead arranger” or “co-arranger”, if
any, shall have any right, power, obligation, liability, responsibility or duty under this Agreement other than, in the case of
such Lenders, those applicable to all Lenders as such. Without limiting the foregoing, none of the Lenders or other Persons so
identified shall have or be deemed to have any fiduciary relationship with any Lender. Each Lender acknowledges that it has not
relied, and will not rely, on any of the Lenders or other Persons so identified in deciding to enter into this Agreement or in
taking or not taking action hereunder.

 

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Section 15GENERAL.

 

15.1         Waiver;
Amendments. No delay on the part of Administrative Agent or any Lender in the exercise of any right, power or remedy shall
operate as a waiver thereof, nor shall any single or partial exercise by any of them of any right, power or remedy preclude other
or further exercise thereof, or the exercise of any other right, power or remedy. No amendment, modification or waiver of, or consent
with respect to, any provision of this Agreement or the other Loan Documents shall in any event be effective unless the same shall
be in writing and acknowledged by Lenders having an aggregate Pro Rata Shares of not less than the aggregate Pro Rata Shares expressly
designated herein with respect thereto or, in the absence of such designation as to any provision of this Agreement, by the Required
Lenders, and then any such amendment, modification, waiver or consent shall be effective only in the specific instance and for
the specific purpose for which given; provided, however, that the Agent Fee Letter and SBIC Regulatory Side Letter may be amended,
waived, consented to or modified by the parties thereto. No amendment, modification, waiver or consent shall (a) extend or
increase the Commitment of any Lender without the written consent of such Lender, (b) extend the date scheduled for payment
of any principal (excluding mandatory prepayments) of or interest on the Loans or any fees payable hereunder without the written
consent of each Lender directly affected thereby, (c) reduce the principal amount of any Loan, the rate of interest thereon
or any fees payable hereunder, without the consent of each Lender directly affected thereby (except for periodic adjustments of
interest rates and fees resulting from a change in the Applicable Margin to the extent provided for in this Agreement); or (d)
release any guarantor from its obligations under the Guaranty and Collateral Agreement, other than as part of or in connection
with any disposition permitted hereunder, or all or any substantial part of the Collateral granted under the Collateral Documents
(except as permitted by Section 14.11), change the definition of Required Lenders, any provision of this Section 15.1,
any provision of Section 13.3 or reduce the aggregate Pro Rata Share required to effect an amendment, modification,
waiver or consent, without, in each case set forth in this clause (d), the written consent of all Lenders. No provision of Section 6.2.2
or 6.3 with respect to the timing or application of mandatory prepayments of the Loans shall be amended, modified or waived
without the consent of Lenders having a majority of the aggregate Pro Rata Shares of the Term Loans affected thereby. No provision
of Section 14 or other provision of this Agreement affecting Administrative Agent in its capacity as such shall be
amended, modified or waived without the consent of Administrative Agent. No provision of this Agreement relating to the rights
or duties of the Issuing Lenders in their capacities as such shall be amended, modified or waived without the consent of the Issuing
Lenders.

 

Notwithstanding the foregoing,
this agreement may be amended (or amended and restated) with the written consent of the Required Lenders, Administrative Agent
and Borrower (a) to add one or more additional credit facilities to this Agreement and to permit the extensions of credit
from time to time outstanding thereunder and the accrued interest and fees in respect thereof to share ratably in the benefits
of this Agreement and the other Loan Documents with the Term Loans, the Revolving Loans, the Revolving Commitments and the accrued
interest and fees in respect thereof and (b) to include appropriately the Lenders holding such credit facilities in any determination
of the Required Lenders.

 

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If, in connection with
any proposed amendment, modification, waiver or termination requiring the consent of all Lenders, the consent of the Required Lenders
is obtained, but the consent of other Lenders whose consent is required is not obtained (any such Lender whose consent is not obtained
being referred to as a “Non-Consenting Lender”), then, so long as Administrative Agent is not a Non-Consenting
Lender, Administrative Agent and/or a Person or Persons reasonably acceptable to Administrative Agent shall have the right to purchase
from such Non-Consenting Lenders, and such Non-Consenting Lenders agree that they shall, upon Administrative Agent’s request,
sell and assign to Administrative Agent and/or such Person or Persons, all of the Loans and Revolving Commitments of such Non-Consenting
Lenders for an amount equal to the principal balance of all such Loans and Revolving Commitments held by such Non-Consenting Lenders
and all accrued interest, fees, expenses and other amounts then due with respect thereto through the date of sale, such purchase
and sale to be consummated pursuant to an executed Assignment Agreement.

 

15.2         Confirmations.
Borrower and each holder of a Note agree from time to time, upon written request received by it from the other, to confirm to the
other in writing (with a copy of each such confirmation to Administrative Agent) the aggregate unpaid principal amount of the Loans
then outstanding under such Note.

 

15.3         Notices.
Except as otherwise provided in Section 2.2.2, all notices hereunder shall be in writing (including facsimile transmission)
and shall be sent to the applicable party at its address shown on Annex B or at such other address as such party may, by
written notice received by the other parties, have designated as its address for such purpose. Notices sent by facsimile transmission
shall be deemed to have been given when sent; notices sent by mail shall be deemed to have been given three (3) Business Days after
the date when sent by registered or certified mail, postage prepaid; and notices sent by hand delivery or overnight courier service
shall be deemed to have been given when received. For purposes of Section 2.2.2, Administrative Agent shall be entitled
to rely on telephonic instructions from any person that Administrative Agent in good faith believes is an authorized officer or
employee of Borrower, and Borrower shall hold Administrative Agent and each other Lender harmless from any loss, cost or expense
resulting from any such reliance.

 

15.4         Computations.
Where the character or amount of any asset or liability or item of income or expense is required to be determined, or any consolidation
or other accounting computation is required to be made, for the purpose of this Agreement, such determination or calculation shall,
to the extent applicable and except as otherwise specified in this Agreement, be made in accordance with GAAP, consistently applied;
provided that if Borrower notifies Administrative Agent that Borrower wishes to amend any covenant in Section 10
or 11.14 (or any related definition) to eliminate or to take into account the effect of any change in GAAP on the operation
of such covenant (or if Administrative Agent notifies Borrower that the Required Lenders wish to amend Section 10 or
11.14 (or any related definition) for such purpose), then Borrower’s compliance with such covenant shall be determined
on the basis of GAAP in effect immediately before the relevant change in GAAP became effective, until either such notice is withdrawn
or such covenant (or related definition) is amended in a manner satisfactory to Borrower and the Required Lenders.

 

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15.5         Costs,
Expenses and Taxes. Each Loan Party, jointly and severally agrees to pay on demand all reasonable out-of-pocket costs and expenses
of Administrative Agent (including Attorney Costs and any Taxes) in connection with the preparation, execution, syndication, delivery
and administration (including perfection and protection of any Collateral and the costs of Intralinks (or other similar service),
if applicable) of this Agreement, the other Loan Documents and all other documents provided for herein or delivered or to be delivered
hereunder or in connection herewith (including any amendment, supplement or waiver to any Loan Document), whether or not the transactions
contemplated hereby or thereby shall be consummated, and all reasonable out-of-pocket costs and expenses (including Attorney Costs
and any Taxes) incurred by Administrative Agent and each Lender after an Event of Default in connection with the collection of
the Obligations or the enforcement of this Agreement the other Loan Documents or any such other documents or during any workout,
restructuring or negotiations in respect thereof. In addition, each Loan Party agrees to pay, and to save Administrative Agent
and the Lenders harmless from all liability for, any fees of Borrower’s auditors in connection with any reasonable exercise
by Administrative Agent and the Lenders of their rights pursuant to Section 10.2. All Obligations provided for in this
Section 15.5 shall survive repayment of the Loans, cancellation of the Notes, expiration or termination of the Letters
of Credit and termination of this Agreement.

 

15.6        Assignments;
Participations.

 

15.6.1           Assignments.
(a) Any Lender may at any time assign to one or more Persons (any such Person, an “Assignee”) all or any
portion of such Lender’s Loans and Commitments, with the prior written consent of Administrative Agent, the Issuing Lenders
(for an assignment of the Revolving Loans and the Revolving Commitments) and Borrower (which consent of Borrower shall not be unreasonably
withheld or delayed), provided, however, consent of Borrower shall not be required (x) for an assignment by a Lender (i) to a Lender
or an Affiliate of a Lender or an Approved Fund (ii) prior to the completion of the primary syndication of the Loans and Commitments
as determined by Monroe Capital, or (iii) to an Eligible Assignee, or (y) during the existence of a Default or an Event of Default.
Except as Administrative Agent may otherwise agree, any such assignment shall be in a minimum aggregate amount equal to $1,000,000
or, if less, the remaining Commitment and Loans held by the assigning Lender. Borrower and Administrative Agent shall be entitled
to continue to deal solely and directly with such Lender in connection with the interests so assigned to an Assignee until Administrative
Agent shall have received and accepted an effective assignment agreement in substantially the form of Exhibit D hereto
(an “Assignment Agreement”) executed, delivered and fully completed by the applicable parties thereto and a
processing fee of $3,500. No assignment may be made to any Person if at the time of such assignment Borrower would be obligated
to pay any greater amount under Section 7.6 or 8 to the Assignee than Borrower is then obligated to pay to the
assigning Lender under such Sections (and if any assignment is made in violation of the foregoing, Borrower will not be required
to pay such greater amounts). Any attempted assignment not made in accordance with this Section 15.6.1 shall be treated
as the sale of a participation under Section 15.6.2. Borrower shall be deemed to have granted its consent to any assignment
requiring its consent hereunder unless Borrower has expressly objected to such assignment within three (3) Business Days
after notice thereof.

 

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(b)          From
and after the date on which the conditions described above have been met, (i) such Assignee shall be deemed automatically
to have become a party hereto and, to the extent that rights and obligations hereunder have been assigned to such Assignee pursuant
to such Assignment Agreement, shall have the rights and obligations of a Lender hereunder and (ii) the assigning Lender, to
the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment Agreement, shall be released
from its rights (other than its indemnification rights) and obligations hereunder. Upon the request of the Assignee (and, as applicable,
the assigning Lender) pursuant to an effective Assignment Agreement, Borrower shall execute and deliver to Administrative Agent
for delivery to the Assignee (and, as applicable, the assigning Lender) one or more Notes in the principal amount of the Assignee’s
Pro Rata Share of the Revolving Commitments or the principal amount of the Assignee’s Term A Loans or the principal amount
of the Assignee’s Delayed Draw Term Loans, as applicable (and, as applicable, one or more Notes in the principal amount of
the Pro Rata Share of the Revolving Commitments retained by the assigning Lender or the principal amount of the Term A Loans retained
by the assigning Lender or the principal amount of the Delayed Draw Term Loans retained by the assigning Lender, as applicable).
Each such Note shall be dated the effective date of such assignment. Upon receipt by Administrative Agent of such Note(s), the
assigning Lender shall return to Borrower any prior Note held by it.

 

(c)          Any
Lender may at any time pledge or assign a security interest in all or any portion of its rights under this Agreement to secure
obligations of such Lender, including any pledge or assignment to secure obligations to a Federal Reserve Bank, and this Section shall
not apply to any such pledge or assignment of a security interest; provided that no such pledge or assignment of a security
interest shall release a Lender from any of its obligations hereunder or substitute any such pledgee or assignee for such Lender
as a party hereto.

 

15.6.2           Participations.
Any Lender may at any time sell to one or more Persons participating interests in its Loans, Commitments or other interests hereunder
(any such Person, a “Participant”). In the event of a sale by a Lender of a participating interest to a Participant,
(a) such Lender’s obligations hereunder shall remain unchanged for all purposes, (b) Borrower and Administrative
Agent shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations
hereunder and (c) all amounts payable by Borrower shall be determined as if such Lender had not sold such participation and
shall be paid directly to such Lender. No Participant shall have any direct or indirect voting rights hereunder except with respect
to any event described in Section 15.1 expressly requiring the unanimous vote of all Lenders or, as applicable, all
affected Lenders. Each Lender agrees to incorporate the requirements of the preceding sentence into each participation agreement
which such Lender enters into with any Participant. Borrower agrees that if amounts outstanding under this Agreement are due and
payable (as a result of acceleration or otherwise), each Participant shall be deemed to have the right of set-off in respect of
its participating interest in amounts owing under this Agreement and with respect to any Letter of Credit to the same extent as
if the amount of its participating interest were owing directly to it as a Lender under this Agreement; provided that such right
of set-off shall be subject to the obligation of each Participant to share with the Lenders, and the Lenders agree to share with
each Participant, as provided in Section 7.5. Borrower also agrees that each Participant shall be entitled to the benefits
of Section 7.6 or 8 as if it were a Lender (provided that on the date of the participation no Participant
shall be entitled to any greater compensation pursuant to Section 7.6 or 8 than would have been paid to
the participating Lender on such date if no participation had been sold and that each Participant complies with Section 7.6(d)
as if it were an Assignee). Each Lender that sells a participation shall, acting solely for this purpose as a non-fiduciary agent
of Borrower, maintain a register on which it enters the name and address of each Participant and the principal amounts (and stated
interest) of each Participant’s interest in the Loans or other obligations under the Loan Documents (the “Participant
Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant
Register (including the identity of any Participant or any information relating to a Participant's interest in any Commitments,
Loans, Letters of Credit or any other obligations under any Loan Document) to any Person except to the extent that such disclosure
is necessary to establish that such Commitment, Loan, Letter of Credit or other obligation is in registered form under Section
5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest
error, and such Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation
for all purposes of this Agreement notwithstanding any notice to the contrary. For the avoidance of doubt, the Administrative Agent
(in its capacity as Administrative Agent) shall have no responsibility for maintaining a Participant Register.

 

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15.7         Register.
Administrative Agent shall maintain a copy of each Assignment Agreement delivered and accepted by it and register (the “Register”)
for the recordation of names and addresses of the Lenders and the Commitment of each Lender from time to time and whether such
Lender is the original Lender or the Assignee. No assignment shall be effective unless and until the Assignment Agreement is accepted
and registered in the Register. All records of transfer of a Lender’s interest in the Register shall be conclusive, absent
manifest error, as to the ownership of the interests in the Loans. Administrative Agent shall not incur any liability of any kind
with respect to any Lender with respect to the maintenance of the Register.

 

15.8         GOVERNING
LAW. THIS AGREEMENT AND EACH NOTE SHALL BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF ILLINOIS
APPLICABLE TO CONTRACTS MADE AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES.

 

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15.9        Confidentiality;
Non-Public Information.

 

15.9.1           As
required by federal law and Administrative Agent’s policies and practices, Administrative Agent may need to obtain, verify,
and record certain customer identification information and documentation in connection with opening or maintaining accounts, or
establishing or continuing to provide services. Administrative Agent and each Lender agree to use commercially reasonable efforts
(equivalent to the efforts Administrative Agent or such Lender applies to maintain the confidentiality of its own confidential
information) to maintain as confidential all information provided to them by any Loan Party and designated as confidential, except
that Administrative Agent and each Lender may disclose such information (a) to Persons employed or engaged by Administrative
Agent or such Lender or such Lender’s Affiliates or Approved Funds in evaluating, approving, structuring or administering
the Loans and the Commitments; (b) to any assignee or participant or potential assignee or participant that has agreed to
comply with the covenant contained in this Section 15.9 (and any such assignee or participant or potential assignee
or participant may disclose such information to Persons employed or engaged by them as described in clause (a) above); (c) as
required or requested by any federal or state regulatory authority or examiner, or any insurance industry association, or as reasonably
believed by Administrative Agent or such Lender to be compelled by any court decree, subpoena or legal or administrative order
or process; (d) as, on the advice of Administrative Agent’s or such Lender’s counsel, is required by law; (e) in
connection with the exercise of any right or remedy under the Loan Documents or in connection with any litigation to which Administrative
Agent or such Lender is a party; (f) to any nationally recognized rating agency that requires access to information about
a Lender’s investment portfolio in connection with ratings issued with respect to such Lender; (g) to any Affiliate
of Administrative Agent, the Issuing Lenders or any Lender who may provide Bank Products to the Loan Parties; (h) to Lender’s
independent auditors and other professional advisors as to which such information has been identified as confidential; or (i) that
ceases to be confidential through no fault of Administrative Agent or any Lender. Notwithstanding the foregoing, Borrower consents
to the publication by Administrative Agent or any Lender of a tombstone or similar advertising material relating to the financing
transactions contemplated by this Agreement, and Administrative Agent reserves the right to provide to industry trade organizations
information necessary and customary for inclusion in league table measurements. If any provision of any confidentiality agreement,
non-disclosure agreement or other similar agreement between Borrower and Lender conflicts with or contradicts this Section 15.9
with respect to the treatment of confidential information, this section shall supersede all such prior or contemporaneous
agreements and understandings between the parties.

 

15.9.2           The
Loan Parties hereby acknowledge that (a) the Administrative Agent will make available to the Lenders and the Issuing Lender materials
and/or information provided by or on behalf of the Borrower hereunder and (b) certain of the Lenders may have personnel who do
not wish to receive material non-public information (“MNPI”) with respect to the Loan Parties or their Affiliates,
or the respective securities of any of the foregoing, and who may be engaged in investment and other market-related activities
with respect to such Persons’ securities. The Loan Parties hereby agree that they shall identify in writing and clearly and
conspicuously mark information that contains only information that is publicly available or that is not material for purposes of
United States federal and state securities laws as "PUBLIC". The Loan Parties agree that by identifying such information
as "PUBLIC" or publicly filing such information with the SEC, then Administrative Agent, the Lenders and the Issuing
Lender shall be entitled to treat such information as not containing any MNPI for purposes of United States federal and state securities
laws. The Loan Parties further represent, warrant, acknowledge and agree that the following documents and materials shall be deemed
to be PUBLIC, whether or not so marked, and do not contain any MNPI: (A) the Loan Documents, including the schedules and exhibits
attached thereto, and (B) administrative materials of a customary nature prepared by the Loan Parties or Administrative Agent (including,
without limitation, notices of borrowing).

 

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15.9.3           If
any Lender or Issuing Lender has elected to abstain from receiving MNPI concerning the Loan Parties or their Affiliates, such Lender
or Issuing Lender acknowledges that, notwithstanding such election, Administrative Agent and/or the Loan Parties will, from time
to time, make available syndicate-information (which may contain MNPI) as required by the terms of this Agreement, or in the course
of administering the Loans, to the credit contact(s) identified for receipt of such information on the Lender's administrative
questionnaire who are able to receive and use all syndicate-level information (which may contain MNPI) in accordance with such
Lender's compliance policies and contractual obligations and applicable law, including federal and state securities laws; provided,
that if such contact is not so identified in such questionnaire, the relevant Lender or Issuing Lender hereby agrees to promptly
(and in any event within one (1) Business Day) provide such a contact to Administrative Agent and the Loan Parties upon request
therefor by Administrative Agent or the Loan Parties. Notwithstanding such Lender's or Issuing Lender's election to abstain from
receiving MNPI, such Lender or Issuing Lender acknowledges that if such Lender or Issuing Lender chooses to communicate with Administrative
Agent, it assumes the risk of receiving MNPI concerning the Loan Parties or their Affiliates.

 

15.10         Severability.
Whenever possible each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable
law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective
to the extent of such prohibition or invalidity, without invalidating the remainder of such provision or the remaining provisions
of this Agreement. All obligations of the Loan Parties and rights of Administrative Agent and the Lenders expressed herein or in
any other Loan Document shall be in addition to and not in limitation of those provided by applicable law.

 

15.11         Nature
of Remedies. All Obligations of the Loan Parties and rights of Administrative Agent and the Lenders expressed herein or in
any other Loan Document shall be in addition to and not in limitation of those provided by applicable law. No failure to exercise
and no delay in exercising, on the part of Administrative Agent or any Lender, any right, remedy, power or privilege hereunder,
shall operate as a waiver thereof; nor shall any single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

 

15.12         Entire
Agreement. This Agreement, together with the other Loan Documents, embodies the entire agreement and understanding among the
parties hereto and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating
to the subject matter hereof and thereof (except as relates to the fees described in Section 5.3) and any prior arrangements
made with respect to the payment by the Loan Parties of (or any indemnification for) any fees, costs or expenses payable to or
incurred (or to be incurred) by or on behalf of Administrative Agent or the Lenders.

 

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15.13         Counterparts.
This Agreement may be executed in any number of counterparts and by the different parties hereto on separate counterparts and each
such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement.
Receipt of an executed signature page to this Agreement by facsimile or other electronic transmission shall constitute effective
delivery thereof. Electronic records of executed Loan Documents maintained by the Lenders shall deemed to be originals.

 

15.14         Successors
and Assigns. This Agreement shall be binding upon Borrower, the Lenders and Administrative Agent and their respective successors
and assigns, and shall inure to the benefit of Borrower, the Lenders and Administrative Agent and the successors and assigns of
the Lenders and Administrative Agent. No other Person shall be a direct or indirect legal beneficiary of, or have any direct or
indirect cause of action or claim in connection with, this Agreement or any of the other Loan Documents. No Loan Party may assign
or transfer any of its rights or Obligations under this Agreement without the prior written consent of Administrative Agent and
each Lender.

 

15.15         Captions.
Section captions used in this Agreement are for convenience only and shall not affect the construction of this Agreement.

 

15.16         Customer
Identification – USA Patriot Act Notice. Each Lender and Monroe Capital (for itself and not on behalf of any other party)
hereby notifies the Loan Parties that, pursuant to the requirements of the USA Patriot Act, Title III of Pub. L. 107-56, signed
into law October 26, 2001 (the “Patriot Act”), it is required to obtain, verify and record information
that identifies the Loan Parties, which information includes the name and address of the Loan Parties and other information that
will allow such Lender or Monroe Capital, as applicable, to identify the Loan Parties in accordance with the Act.

 

15.17         INDEMNIFICATION
BY LOAN PARTIES. IN CONSIDERATION OF THE EXECUTION AND DELIVERY OF THIS AGREEMENT BY ADMINISTRATIVE AGENT AND THE LENDERS
AND THE AGREEMENT TO EXTEND THE COMMITMENTS PROVIDED HEREUNDER, BORROWER HEREBY AGREES TO INDEMNIFY, EXONERATE AND HOLD ADMINISTRATIVE
AGENT, EACH LENDER AND EACH OF THE OFFICERS, DIRECTORS, EMPLOYEES, AFFILIATES, APPROVED FUNDS AND AGENTS OF ADMINISTRATIVE AGENT
AND EACH LENDER (EACH A “LENDER PARTY”) FREE AND HARMLESS FROM AND AGAINST ANY AND ALL ACTIONS, CAUSES OF ACTION,
SUITS, LOSSES, LIABILITIES, DAMAGES AND EXPENSES, INCLUDING ATTORNEY COSTS (COLLECTIVELY, THE “INDEMNIFIED LIABILITIES”),
INCURRED BY THE LENDER PARTIES OR ANY OF THEM AS A RESULT OF, OR ARISING OUT OF, OR RELATING TO (a) ANY TENDER OFFER, MERGER,
PURCHASE OF CAPITAL SECURITIES, PURCHASE OF ASSETS OR OTHER SIMILAR TRANSACTION FINANCED OR PROPOSED TO BE FINANCED IN WHOLE OR
IN PART, DIRECTLY OR INDIRECTLY, WITH THE PROCEEDS OF ANY OF THE LOANS, (b) THE USE, HANDLING, RELEASE, EMISSION, DISCHARGE,
TRANSPORTATION, STORAGE, TREATMENT OR DISPOSAL OF ANY HAZARDOUS SUBSTANCE AT ANY PROPERTY OWNED OR LEASED AT ANY TIME BY ANY LOAN
PARTY, (c) ANY VIOLATION, OBLIGATION OR LIABILITY PURSUANT TO ANY ENVIRONMENTAL LAWS WITH RESPECT TO CONDITIONS AT ANY PROPERTY
OWNED OR LEASED BY ANY LOAN PARTY AT ANY TIME OR THE OPERATIONS CONDUCTED THEREON, (d) THE INVESTIGATION, CLEANUP OR REMEDIATION
OF OFFSITE LOCATIONS AT WHICH ANY LOAN PARTY OR THEIR RESPECTIVE PREDECESSORS ARE ALLEGED TO HAVE DIRECTLY OR INDIRECTLY DISPOSED
OF HAZARDOUS SUBSTANCES OR OTHERWISE BE LIABLE UNDER ENVIRONMENTAL LAWS, OR (e) THE EXECUTION, DELIVERY, PERFORMANCE OR ENFORCEMENT
OF THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT BY ANY OF THE LENDER PARTIES, EXCEPT FOR ANY SUCH INDEMNIFIED LIABILITIES ARISING
ON ACCOUNT OF THE APPLICABLE LENDER PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS DETERMINED BY A FINAL, NONAPPEALABLE
JUDGMENT BY A COURT OF COMPETENT JURISDICTION. IF AND TO THE EXTENT THAT THE FOREGOING UNDERTAKING MAY BE UNENFORCEABLE FOR
ANY REASON, EACH LOAN PARTY HEREBY AGREES TO MAKE THE MAXIMUM CONTRIBUTION TO THE PAYMENT AND SATISFACTION OF EACH OF THE INDEMNIFIED
LIABILITIES WHICH IS PERMISSIBLE UNDER APPLICABLE LAW. ALL OBLIGATIONS PROVIDED FOR IN THIS SECTION 15.17 SHALL SURVIVE
REPAYMENT OF THE LOANS, CANCELLATION OF THE NOTES, EXPIRATION OR TERMINATION OF THE LETTERS OF CREDIT, ANY FORECLOSURE UNDER, OR
ANY MODIFICATION, RELEASE OR DISCHARGE OF, ANY OR ALL OF THE COLLATERAL DOCUMENTS AND TERMINATION OF THIS AGREEMENT.

 

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15.18         Nonliability
of Lenders. The relationship between Borrower on the one hand and the Lenders and Administrative Agent on the other hand shall
be solely that of borrower and lender. Neither Administrative Agent nor any Lender has any fiduciary relationship with or duty
to any Loan Party arising out of or in connection with this Agreement or any of the other Loan Documents, and the relationship
between the Loan Parties, on the one hand, and Administrative Agent and the Lenders, on the other hand, in connection herewith
or therewith is solely that of debtor and creditor. Neither Administrative Agent nor any Lender undertakes any responsibility to
any Loan Party to review or inform any Loan Party of any matter in connection with any phase of any Loan Party’s business
or operations. Borrower agrees, on behalf of itself and each other Loan Party, that neither Administrative Agent nor any Lender
shall have liability to any Loan Party (whether sounding in tort, contract or otherwise) for losses suffered by any Loan Party
in connection with, arising out of, or in any way related to the transactions contemplated and the relationship established by
the Loan Documents, or any act, omission or event occurring in connection therewith, unless it is determined in a final non-appealable
judgment by a court of competent jurisdiction that such losses resulted from the gross negligence or willful misconduct of the
party from which recovery is sought. NO LENDER PARTY SHALL BE LIABLE FOR ANY DAMAGES ARISING FROM THE USE BY OTHERS OF ANY INFORMATION
OR OTHER MATERIALS OBTAINED THROUGH INTRALINKS OR OTHER SIMILAR INFORMATION TRANSMISSION SYSTEMS IN CONNECTION WITH THIS AGREEMENT,
NOR SHALL ANY LENDER PARTY HAVE ANY LIABILITY WITH RESPECT TO, AND BORROWER ON BEHALF OF ITSELF AND EACH OTHER LOAN PARTY, HEREBY
WAIVES, RELEASES AND AGREES NOT TO SUE FOR ANY SPECIAL, PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES RELATING TO THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT OR ARISING OUT OF ITS ACTIVITIES IN CONNECTION HEREWITH OR THEREWITH (WHETHER BEFORE OR AFTER
THE CLOSING DATE). Each Loan Party acknowledges that it has been advised by counsel in the negotiation, execution and delivery
of this Agreement and the other Loan Documents to which it is a party. No joint venture is created hereby or by the other Loan
Documents or otherwise exists by virtue of the transactions contemplated hereby among the Lenders or among the Loan Parties and
the Lenders

 

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15.19         FORUM
SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF ILLINOIS OR IN
THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS; PROVIDED THAT NOTHING IN THIS AGREEMENT SHALL BE
DEEMED OR OPERATE TO PRECLUDE ADMINISTRATIVE AGENT FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION. EACH
LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF ILLINOIS AND OF THE UNITED
STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF ILLINOIS FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. EACH LOAN
PARTY FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN
OR WITHOUT THE STATE OF ILLINOIS. EACH LOAN PARTY HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW,
ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED
TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

15.20         WAIVER
OF JURY TRIAL. EACH LOAN PARTY, ADMINISTRATIVE AGENT AND EACH LENDER HEREBY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION
OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT AND ANY AMENDMENT, INSTRUMENT,
DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM
ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, AND AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL
BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

Section 16JOINT
AND SEVERAL LIABILITY

 

16.1         Borrower
is defined collectively to include all Persons constituting Borrower; provided, however, that any references herein to “any
Borrower”, “each Borrower”, “a Borrower” or similar references, shall be construed as a reference
to each individual Person comprising Borrower. In addition, each Person comprising Borrower hereby acknowledges and agrees that
all of the representations, warranties, covenants, obligations, conditions, agreements and other terms contained in this Agreement
shall be applicable to and shall be binding upon each Person comprising Borrower unless expressly otherwise stated herein.

 

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16.2         Each
Borrower shall be jointly and severally liable for all of the Obligations of each other Borrower, regardless of which Borrower
actually receives the proceeds or other benefits of the Loans or other extensions of credit hereunder or the manner in which Borrowers,
Administrative Agent or any Lender accounts therefor in their respective books and records.

 

16.3         Each
Borrower acknowledges that it will enjoy significant benefits from the business conducted by each other Borrower because of, inter
alia, their combined ability to bargain with other Persons including without limitation their ability to receive the Loans and
other credit extensions under this Agreement and the other Loan Documents which would not have been available to any Borrower acting
alone. Each Borrower has determined that it is in its best interest to procure the credit facilities contemplated hereunder, with
the credit support of each other Borrower as contemplated by this Agreement and the other Loan Documents.

 

16.4         Each
of Administrative Agent and the Lenders have advised each Borrower that it is unwilling to enter into this Agreement and the other
Loan Documents and make available the credit facilities extended hereby or thereby to any Borrower unless each Borrower agrees,
among other things, to be jointly and severally liable for the due and proper payment of the Obligations of each other Borrower.
Each Borrower has determined that it is in its best interest and in pursuit of its purposes that it so induce the Lenders to extend
credit pursuant to this Agreement and the other documents executed in connection herewith (A) because of the desirability
to each Borrower of the credit facilities hereunder and the interest rates and the modes of borrowing available hereunder and thereunder,
(B) because each Borrower may engage in transactions jointly with other Borrowers and (C) because each Borrower may require,
from time to time, access to funds under this Agreement for the purposes herein set forth. Each Borrower, individually, expressly
understands, agrees and acknowledges, that the credit facilities contemplated hereunder would not be made available on the terms
herein in the absence of the collective credit of all the Borrowers, and the joint and several liability of all the Borrowers.
Accordingly, each Borrower acknowledges that the benefit of the accommodations made under this Agreement to the Borrower, as a
whole, constitutes reasonably equivalent value, regardless of the amount of the indebtedness actually borrowed by, advanced to,
or the amount of credit provided to, or the amount of collateral provided by, any one Borrower.

 

16.5         To
the extent that applicable law otherwise would render the full amount of the joint and several obligations of any Borrower hereunder
and under the other Loan Documents invalid or unenforceable, such Person’s obligations hereunder and under the other Loan
Documents shall be limited to the maximum amount which does not result in such invalidity or unenforceability; provided, however,
that each Borrower’s obligations hereunder and under the other Loan Documents shall be presumptively valid and enforceable
to their fullest extent in accordance with the terms hereof or thereof, as if this Section 16 were not a part of this
Agreement.

 

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16.6         To
the extent that any Borrower shall make a payment under this Section 16 of all or any of the Obligations (a “Joint
Liability Payment”) which, taking into account all other Joint Liability Payments then previously or concurrently made
by any other Borrower, exceeds the amount that such Borrower would otherwise have paid if each Borrower had paid the aggregate
Obligations satisfied by such Joint Liability Payments in the same proportion that such Person’s “Allocable Amount”
(as defined below) (as determined immediately prior to such Joint Liability Payments) bore to the aggregate Allocable Amounts of
each Borrower as determined immediately prior to the making of such Joint Liability Payments, then, following payment in full in
cash of the Obligations (other than contingent indemnification Obligations not then asserted), the expiration, termination or Cash
Collateralization of all Letters of Credit and the termination of the Commitments, such Borrower shall be entitled to receive contribution
and indemnification payments from, and be reimbursed by, each other Borrower for the amount of such excess, pro rata based upon
their respective Allocable Amounts in effect immediately prior to such Joint Liability Payments. As of any date of determination,
the “Allocable Amount” of any Borrower shall be equal to the maximum amount of the claim which could then be
recovered from such Borrower under this Section 16 without rendering such claim voidable or avoidable under §548
of Chapter 11 of the Bankruptcy Code or under any applicable state Uniform Fraudulent Transfer Act, Uniform Fraudulent Conveyance
Act or similar statute or common law.

 

16.7         Each
Borrower assumes responsibility for keeping itself informed of the financial condition of each other Borrower, and any and all
endorsers and/or guarantors of any instrument or document evidencing all or any part of such other Borrower’s Obligations,
and of all other circumstances bearing upon the risk of nonpayment by such other Borrower of their Obligations, and each Borrower
agrees that neither Administrative Agent nor any Lender shall have any duty to advise such Borrower of information known to Administrative
Agent or any Lender regarding such condition or any such circumstances or to undertake any investigation not a part of its regular
business routine. If Administrative Agent or any Lender, in its sole discretion, undertakes at any time or from time to time to
provide any such information to a Borrower, neither Administrative Agent nor any Lender shall be under any obligation to update
any such information or to provide any such information to such Borrower or any other Person on any subsequent occasion.

 

16.8         Administrative
Agent is hereby authorized to, at any time and from time to time, (a) in accordance with the terms of this Agreement, renew,
extend, accelerate or otherwise change the time for payment of, or other terms relating to, Obligations incurred by any Borrower
or any other Loan Party, otherwise modify, amend or change the terms of any promissory note or other agreement, document or instrument
now or hereafter executed by any Borrower or any other Loan Party and delivered to Administrative Agent or any Lender; (b) accept
partial payments on an Obligation incurred by any Borrower; (c) take and hold security or collateral for the payment of an
Obligation incurred by any Borrower hereunder or for the payment of any guaranties of an Obligation incurred by any Borrower or
other liabilities of any Borrower and exchange, enforce, waive and release any such security or collateral; (d) apply such
security or collateral and direct the order or manner of sale thereof as Administrative Agent, in its sole discretion, may determine;
and (e) settle, release, compromise, collect or otherwise liquidate an Obligation incurred by any Borrower and any security
or collateral therefor in any manner, without affecting or impairing the obligations of any other Borrower. In accordance with
the terms of this Agreement, Administrative Agent shall have the exclusive right to determine the time and manner of application
of any payments or credits, whether received from a Borrower or any other source, and such determination shall be binding on each
Borrower. In accordance with the terms of this Agreement, all such payments and credits may be applied, reversed and reapplied,
in whole or in part, to any of an Obligation incurred by any Borrower as Administrative Agent shall determine in its sole discretion
without affecting the validity or enforceability of the Obligations of any other Borrower. Nothing in this Section 16
shall modify any right of any Borrower or any Lender to consent to any amendment or modification of this Agreement or the other
Loan Documents in accordance with the terms hereof or thereof.

 

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16.9         Each
Borrower hereby agrees that, except as hereinafter provided, its obligations hereunder shall be unconditional, irrespective of
(a) the absence of any attempt to collect an Obligation incurred by Borrower from any Borrower or any guarantor or other action
to enforce the same; (b) failure by Administrative Agent to take any steps to perfect and maintain its security interest in,
or to preserve its rights to, any security or collateral for an Obligation incurred by any Borrower; (c) of any proceeding
under the Bankruptcy Code, or any similar proceeding, by or against any Borrower or any other Loan Party, or Administrative Agent’s
or any Lender’s election in any such proceeding of the application of §1111(b)(2) of the Bankruptcy Code; (d) any
borrowing or grant of a security interest by any Borrower as debtor-in-possession under §364 of the Bankruptcy Code; (e) the
disallowance, under §502 of the Bankruptcy Code, of all or any portion of Administrative Agent’s or any Lender’s
claim(s) for repayment of any of an Obligation incurred by any Borrower; or (f) any other circumstance which might otherwise
constitute a legal or equitable discharge or defense of a guarantor unless such legal or equitable discharge or defense is that
of a Borrower in its capacity as a Borrower.

 

16.10         Any
notice given by Borrower Representative hereunder shall constitute and be deemed to be notice given by all Borrowers, jointly and
severally. Notice given by Administrative Agent or any Lender to Borrower Representative hereunder or pursuant to any other Loan
Documents in accordance with the terms hereof or thereof shall constitute notice to each Borrower. The knowledge of any Borrower
shall be imputed to all Borrower and any consent by Borrower Representative or any Borrower shall constitute the consent of and
shall bind all Borrower.

 

16.11         This
Section 16 is intended only to define the relative rights of Borrower and nothing set forth in this Section 16
is intended to or shall impair the obligations of Borrower, jointly and severally, to pay any amounts as and when the same shall
become due and payable in accordance with the terms of this Agreement or any other Loan Documents. Nothing contained in this Section 16
shall limit the liability of any Borrower to pay the credit facilities made directly or indirectly to such Borrower and accrued
interest, fees and expenses with respect thereto for which such Borrower shall be primarily liable.

 

16.12         The
parties hereto acknowledge that the rights of contribution and indemnification hereunder shall constitute assets of each Borrower
to which such contribution and indemnification is owing. The rights of any indemnifying Borrower against the other Borrowers under
this Section 16 shall be exercisable upon the full and payment of the Obligations, the termination of the Letters of
Credit and the termination of the Commitments.

 

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16.13         No
payment made by or for the account of a Borrower, including, without limitation, (a) a payment made by such Borrower on behalf
of an Obligation of another Borrower or (b) a payment made by any other Person under any guaranty, shall entitle such Borrower,
by subrogation or otherwise, to any payment from such other Borrower or from or out of property of such other Borrower and such
Borrower shall not exercise any right or remedy against such other Borrower or any property of such other Borrower by reason of
any performance of such Borrower of its joint and several obligations hereunder, until, in each case, the termination of the Commitments,
payment in full of all Obligations (other than contingent indemnification Obligations not then asserted) and the expiration or
termination or Cash Collateralization of all Letters of Credit.

 

Section 17Appointment
of Borrower Representative.

 

17.1         Each
Borrower hereby irrevocably appoints and constitutes the Borrower Representative as its agent to request and receive the proceeds
of advances in respect of the Loans (and to otherwise act on behalf of such Borrower pursuant to this Agreement and the other Loan
Documents) from Lenders in the name or on behalf of each such Borrower. Administrative Agent may disburse such proceeds to the
bank account of Borrower Representative (or any other Borrower) without notice to any other Borrower or any other Loan Party.

 

17.2         Each
Borrower hereby irrevocably appoints and constitutes the Borrower Representative as its agent to (i) receive statements of
account and all other notices from Administrative Agent with respect to the Obligations or otherwise under or in connection with
this Agreement and the other Loan Documents, (ii) execute and deliver Compliance Certificates and all other notices, certificates
and documents to be executed and/or delivered by any Borrower under this Agreement or the other Loan Documents; and (iii) otherwise
act on behalf of such Borrower pursuant to this Agreement and the other Loan Documents.

 

17.3         The
authorizations contained in this Section 17 are coupled with an interest and shall be irrevocable, and Administrative
Agent may rely on any notice, request, information supplied by the Borrower Representative, every document executed by the Borrower
Representative, every agreement made by the Borrower Representative or other action taken by the Borrower Representative in respect
of any Borrower or other Loan Party as if the same were supplied, made or taken by such Borrower or Loan Party. Without limiting
the generality of the foregoing, the failure of one or more Borrowers or other Loan Party to join in the execution of any writing
in connection herewith shall not relieve any Borrower or other Loan Party from obligations in respect of such writing.

 

17.4         No
purported termination of the appointment of Borrower Representative as agent shall be effective without the prior written consent
of Administrative Agent.

 

[SIGNATURE PAGES FOLLOW]

 

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The parties hereto have
caused this Agreement to be duly executed and delivered by their duly authorized officers as of the date first set forth above.

 

	BORROWER:	CYALUME TECHNOLOGIES HOLDINGS, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ Michael Bielonko
	 	 	Michael Bielonko
	 	 	Chief Financial Officer, Treasurer and Secretary
	 	 	 
	 	CYALUME TECHNOLOGIES, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ Michael Bielonko
	 	 	Michael Bielonko
	 	 	Chief Financial Officer, Treasurer and Secretary
	 	 	 
	 	CYALUME SPECIALTY PRODUCTS, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ Michael Bielonko
	 	 	Michael Bielonko
	 	 	Chief Financial Officer, Treasurer and Secretary
	 	 	 
	 	COMBAT TRAINING SOLUTIONS, INC., a Colorado corporation
	 	 	 
	 	By:	/s/ Michael Bielonko
	 	 	Michael Bielonko
	 	 	Chief Financial Officer, Treasurer and Secretary
	 	 	 
	 	CYALUME REALTY, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ Michael Bielonko
	 	 	Michael Bielonko
	 	 	Chief Financial Officer, Treasurer and Secretary

 

	 	Signature Page to

Credit Agreement	 

 

    	 

    	 

    

 

	BORROWER:	CT SAS HOLDINGS, INC., a Delaware corporation
	 	 	 
	 	By:	/s/ Michael Bielonko
	 	 	Michael Bielonko
	 	 	Chief Financial Officer, Treasurer and Secretary

 

	 	Signature Page to

Credit Agreement	 

 

    	 

    	 

    

 

	ADMINISTRATIVE AGENT:	MONROE CAPITAL MANAGEMENT ADVISORS, LLC, as Administrative Agent 
	 	 
	 	By:	/s/ Jeffrey Cupples
	 	 	Jeffrey Cupples
	 	 	Director

 

	 	Signature Page to

Credit Agreement	 

 

    	 

    	 

    

 

	LENDERS:	Monroe
    Capital Corporation, in its capacity as a Lender
	 	 	 
	 	By:	/s/ Jeffrey Cupples
	 	 	Jeffrey Cupples
	 	 	Director
	 	 	 
	 	Monroe
    Capital Corporation SBIC, LP, a Delaware limited partnership
	 	 	 
	 	 	By:	MCC SBIC GP, LLC, a Delaware limited liability
    company
	 	 	Its:	General Partner
	 	 	 	 
	 	 		By:	Monroe capital bdc  advisors
    llc, a Delaware  limited liability company
	 	 		Its:	Manager
	 	 	 	 
	 	 	 		By:	/s/ Jeffrey Cupples
	 	 	 	 		Jeffrey Cupples
	 	 	 	 		Director
	 	 	 
	 	Monroe
    Capital Senior Secured Direct Loan Fund LP, in its capacity as a Lender
	 	 	 	 
	 	 	By:  	Monroe
    Capital Senior Secured Direct Loan Fund LLC
	 	 	Its:  	General Partner
	 	 	 	 	 
	 	 	 	By:	/s/ Jeffrey Cupples
	 	 	 	 	Jeffrey Cupples
	 	 	 	 	Director

  

	 	Signature Page to

Credit Agreement	 

 

    	 

    	 

    

 

	LENDERS:	Monroe Capital Senior Secured Direct Loan FINANCING SPV LLC,
	 	in its capacity as a Lender
	 	 	   
	 	   	By: 	MONROE CAPITAL SENIOR SECURED DIRECT LOAN FUND LP
	 	 	Its:  	Designated Manager
	 	 	 	 	 
	 	 	 	By:	Monroe Capital Senior Secured Direct Loan Fund LLC
	 	 	 	Its:  	General Partner
	 	 	 	 	 
	 	 	 	 	By:	/s/ Jeffrey Cupples
	 	 	 	 	 	Jeffrey Cupples
	 	 	 	 	 	Director
	 	 	 	 	 
	 	Monroe Capital Senior Secured Direct Loan Fund (Unleveraged) LP, in its capacity as a Lender
	 	 	 	 	 
	 	 	By:  	Monroe Capital Senior Secured Direct Loan Fund LLC
	 	 	Its:  	General Partner
	 	 	 	 	 
	 	 	 	By:	/s/ Jeffrey Cupples
	 	 	 	 	Jeffrey Cupples
	 	 	 	 	Director
	 	 	 	 	 
	 	Monroe Capital ParTners Fund II, Lp, in its capacity as a Lender
	 	 	 	 	    
	 	 	By:	Monroe Capital PArtners fund ii, llc
	 	 	Its:  	General Partner
	 	 	 	 	 
	 	 	 	By:	/s/ Jeffrey Cupples
	 	 	 	 	Jeffrey Cupples
	 	 	 	 	Director

 

	 	Signature Page to

Credit Agreement	 

 

    	 

    	 

    

 

ANNEX A

 

LENDERS AND
PRO RATA SHARES

 

	Lender	 	Revolving

    Commitment	 	 	Pro Rata

     Share*/ 	 	 	Term A Loan

    Commitment	 	 	Pro Rata

     Share*/ 	 	 	Delayed Draw

    Term Loan
 Commitment	 	 	Pro Rata

     Share*/ 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONROE CAPITAL CORPORATION	 	$	1,527,777.78	 	 	 	30.555555600	%	 	$	0.00	 	 	 	0	%	 	$	611,111.11	 	 	 	30.555555500	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONROE CAPITAL CORPORATION SBIC, LP	 	$	0.00	 	 	 	0	%	 	$	5,500,000.00	 	 	 	30.555555556	%	 	$	0.00	 	 	 	0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONROE CAPITAL SENIOR SECURED DIRECT LOAN FUND LP	 	$	1,343,577.24	 	 	 	26.871544800	%	 	$	0.00	 	 	 	0	%	 	$	537,430.90	 	 	 	26.871545000	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONROE CAPITAL SENIOR SECURED DIRECT LOAN FINANCING SPV LLC	 	$	0.00	 	 	 	0	%	 	$	4,836,878.07	 	 	 	26.871544833	%	 	$	0.00	 	 	 	0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONROE CAPITAL SENIOR SECURED DIRECT LOAN FUND (UNLEVERAGED) LP	 	$	1,128,644.98	 	 	 	22.572899600	%	 	$	4,063,121.93	 	 	 	22.572899611	%	 	$	451,457.99	 	 	 	22.572899500	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	MONROE CAPITAL PARTNERS FUND II, LP	 	$	1,000,000.00	 	 	 	20.000000000	%	 	$	3,600,000.00	 	 	 	20.000000000	%	 	$	400,000.00	 	 	 	20.000000000	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTALS	 	$	5,000,000.00	 	 	 	100	%	 	$	18,000,000.00	 	 	 	100	%	 	$	2,000,000.00	 	 	 	100	%

 

		*/	Carry out to nine decimal places.

 

	 	Annex A to Credit Agreement	 

 

    	 

    	 

    

 

ANNEX B

 

ADDRESSES
FOR NOTICES

 

BORROWER AND BORROWER REPRESENTATIVE

 

c/o Cyalume Technologies Holdings, Inc.

910 SE 17th Street, Suite 300

Fort Lauderdale, Florida 33316

Attention: Michael Bielonko

Telephone: (413) 858-2516

Facsimile: (413) 788-4817

 

MONROE CAPITAL MANAGEMENT ADVISORS, LLC, as
Administrative Agent

MONROE CAPITAL CORPORATION

MONROE CAPITAL CORPORATION SBIC, LP

MONROE CAPITAL SENIOR SECURED DIRECT LOAN FUND
LP

MONROE CAPITAL SENIOR SECURED DIRECT LOAN FINANCING
SPV LLC

MONROE CAPITAL SENIOR SECURED DIRECT LOAN FUND
(UNLEVERAGED) LP

MONROE CAPITAL PARTNERS FUND II, LP

c/o Monroe Capital LLC

311 South Wacker Drive, Suite 6400

Chicago, Illinois 60606

Attention: Jeffrey Cupples

Telephone: (312) 523-2385

Facsimile: (312) 258-8350

 

With a mandatory copy to:

 

Vedder Price P.C.

222 North LaSalle Street, Suite 2300

Chicago, Illinois 60601

Attention: Michael A. Nemeroff, Esq.

Telephone: (312) 609-7858

Facsimile: (312) 609-5005

 

	 	Annex B to Credit Agreement

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