Document:

EXHIBIT 10.38

 

EXECUTIVE EMPLOYMENT AGREEMENT

THIS EXECUTIVE EMPLOYMENT AGREEMENT (the "Agreement") is made and effective as of March 29, 2013 (the "Effective Date"), between General Employment Enterprises Inc., an Illinois corporation, whose principal place of business is One Tower Lane, Suite 2200, Oakbrook Terrace, IL 60181 (the "Company") and Andrew J. Norstrud, an individual whose address is 15837 Trackside Drive, Odessa, Florida 33556 (the "Executive").

RECITALS

A.           The Company is an Illinois corporation and is principally engaged in the business of staffing and permanent placement, and related personnel activities, including benefit and insurance programs (the "Business").

B.            The Executive is a duly qualified and licensed Certified Public Accountant (in Florida) and has extensive experience in financial management, accounting and SEC reporting for publicly-listed companies, which skills are required immediately and would be beneficial for the Company and its shareholders.

C.            The Company desires to employ the Executive and the Executive desires to be employed by the Company.

D.           The parties agree that a covenant not to compete is essential to the growth and stability of the business of the Company.

NOW, THEREFORE, in consideration of the mutual promises and covenants herein made, the Company and the Executive do hereby agree as follows:

1.             Recitals.  The above recitals are true, correct, and are herein incorporated by reference.

2.             Employment.  The Company hereby employs the Executive, and the Executive hereby accepts employment, upon the terms and conditions hereinafter set forth.

3.              Authority and Power During Employment Period.

 

a.            Duties and Responsibilities.  During the term of this Agreement, the Executive shall serve as Chief Financial Officer and Treasurer for the Company and will perform duties typical and standard of this title and report directly to Michael Schroering, the Chief Executive Officer (the “CEO”), subject to the guidelines and direction of the Board of Directors of the Company.  It is understood and agreed that Executive is and shall be a designated officer of the Company for SEC reporting purposes and requirements.

1

b.            Time Devoted.  Throughout the term of the Agreement, the Executive shall devote most of the Executive's business time and attention to the business and affairs of the Company consistent with the Executive's position with the Company.  It is understood and agreed that the Executive shall conduct the more substantial part of his work for the Company from his home office in Tampa, Florida, retaining his domicile as a resident of Florida, and that he shall not be deemed a resident of Illinois for any purpose under this Agreement.  It is further agreed that, subject to further review by the CEO, if circumstances warrant, the Executive shall have a limited right to assist and serve his existing clients to the extent that he can do so without prejudice to the interests and needs of the Company.  The Executive shall keep the Company’s CEO generally informed of the Executive’s work on any other client matters during the term of this Agreement, and any substantially changed circumstances with respect to such other work, if any.

4.             Term.  The Term of employment hereunder shall be three (3) years from the Effective Date shown above, unless earlier amended, renewed or terminated as provided herein.

5.             Compensation and Benefits.

a.            Salary.  The Executive shall be paid a base salary (the "Base Salary") at an annual rate of Two Hundred Thousand Dollars ($200,000) beginning at the Effective Date of this Agreement, payable in monthly installments according to the customary procedures of the Company.  Any additional increase will be at the discretion of the CEO and the Compensation Committee of the Board of Directors.

b.            Performance Based Bonus.  As additional compensation, the Executive shall be entitled to receive a cash bonus ("Bonus") of up to one hundred percent (100%) of the Executive’s Base Salary for each fiscal year during the Term of the Executive's employment, based on performance criteria to be mutually defined.  In addition the Executive may receive additional bonuses if and as determined by the CEO and the Compensation Committee, which may be paid in stock, stock options, or cash, within the discretion of the CEO and Compensation Committee.  Bonus payments shall be paid at or after the end of the applicable fiscal reporting period, and shall not be accrued or earned prior to the actual approval and award of any such Bonus by the Board of Directors.

c.            Options.  Within 30 days of the date this Agreement is executed, the Executive shall be granted qualified options to purchase two hundred thousand (200,000) shares of the Company’s common stock at the fair market value as of that date (measured by the day’s closing price on the NYSE MKT) which shall vest proportionately over a three year period, will be exercisable for ten (10) years, and will provide for a cashless exercise, subject to the usual provisions of the Company’s qualified stock option plan then in effect.  Additional options may be issued to the Executive from time to time as approved by the Compensation Committee and the Board of Directors in their sole discretion.

d.            Executive Benefits.  The Executive shall be entitled to participate in all benefit programs of the Company currently existing or hereafter made available to comparable executives.

2

e.            Vacation.  During each year of the term of this Agreement, commencing with the Effective Date, the Executive shall be entitled to five (5) weeks paid vacation per year.

f.            Business Expense Reimbursement.  During the Term of employment, the Executive shall be entitled to receive proper reimbursement for all reasonable, out-of-pocket expenses incurred by the Executive (in accordance with the policies and procedures established by the Company for its senior executive officers) in performing services hereunder, including but not limited to travel expenses to various offices of the Company and reasonable continuing education courses completed, if any, provided the Executive properly accounts therefore.  The Company shall pay for or reimburse the out-of-pocket expenses associated with the Executive’s travel from Tampa, Florida to the Company’s headquarters in Oakbrook Terrace, IL, and meals and lodging expenses while in Illinois.

g.            Signing and Incentive Bonus. A Twenty Five Thousand Dollar ($25,000) signing bonus shall be paid immediately upon or effective as of the execution of this Agreement, and an additional Twenty Five Thousand Dollar ($25,000) cash bonus will be earned, due, and payable as a special performance incentive Bonus within ten (10) days after a written business plan and pro forma financial plan (the “Business Plan”) for the Company is submitted to the Board of Directors, provided, said Business Plan is submitted on or prior to August 30, 2013 and is reasonably approved by the Board of Directors.  The Twenty Five Thousand Dollar ($25,000) second bonus will be combined with a new and additional title of “Vice President” of the appropriate corporate rank, to be determined at or about the time of such achievement.

.

6.             Consequences of Termination of Employment.

a.            Death.  In the event of the death of the Executive during the Term, any unpaid salary and earned bonus shall be paid to the Executive's designated beneficiary, or, in the absence of such designation, to the estate or other legal representative of the Executive, until the date of death.  Other death benefits will be determined in accordance with the terms of the Company's benefit programs and plans in effect at the time of such death, if any.

b.            Disability.  In the event of the Executive's disability, the Executive shall be entitled to compensation in accordance with the Company's disability compensation practice for senior executives, if any, including any separate arrangement or policy covering the Executive.  Given the unique circumstances and as an incentive to induce Executive to accept this Agreement - subject to appropriate medical verification by physicians reasonably selected by the Company - Executive shall be entitled to a disability payment of up to one (1) month’s Base Salary as a Company-paid disability and severance benefit to assist  during the immediate aftermath of any total and permanent disability, after which the Company shall have no further obligation for compensation under this Agreement. The Board of Directors shall have the discretion to increase any such payment in its sole discretion if circumstances warrant additional compensation in the best interests of the Company.

3

c.            Termination by the Company for Cause.

(1)            Nothing herein shall prevent the Company from terminating Employment for "Cause," as hereinafter defined.  The Executive shall continue to receive salary only for the pay period first ending after the date of such termination.  Any rights and benefits the Executive may have in respect of any other compensation shall be determined in accordance with the terms of such other compensation arrangements or such plans or programs.

(2)            "Cause" shall mean and include those actions or events specified below in subsections (A) through (G) to the extent the same occur, or the events constituting the same take place, subsequent to the date of execution of this Agreement:  (A)  Committing or participating in an injurious act of fraud, gross neglect or embezzlement against the Company; (B) committing or participating in any other injurious act or omission in a manner which was negligent against the Company, monetarily or otherwise; (C) engaging in a criminal enterprise involving moral turpitude; (D) conviction of an act or acts constituting a felony under the laws of the United States or any state thereof; (E) any attempted assignment of this Agreement by the Executive in violation of Section 14 of this Agreement; (F) failure to discharge written, statutory or regulatory duties of the CFO under this Agreement; or (G) general and continuous failure or refusal to perform the duties reasonably assigned by the Board of Directors or the CEO or to follow any lawful directive of the Board of Directors or the CEO.  No actions, events or circumstances, other than material fraud, occurring or taking place at any time prior to the date of this Agreement shall constitute or provide any basis for any termination of this Agreement for Cause;

(3)            Notwithstanding anything else contained in this Agreement, this Agreement will not be deemed to have been terminated for Cause unless and until there shall have been delivered to the Executive a notice of termination stating that the Executive committed one of the types of conduct set forth in this Section 6(c) contained in this Agreement and specifying the particulars thereof.  The Executive shall be given a ten (10) day period to cure such conduct or act or omission, if possible.

d.            Termination by the Company Other than for Cause.  The foregoing notwithstanding, the Company may terminate the Executive's employment for whatever reason it deems appropriate, or for no reason whatsoever; provided, however, that in the event such termination is not based on Cause, as provided in Section 6(c) above or related to a change of control as defined in section 6(f), the Company may terminate this Agreement upon giving three (3) months prior written notice.  During such three (3) month period, the Executive shall continue to perform the Executive's duties pursuant to this Agreement unless otherwise directed by the CEO or the Board of Directors, and the Company shall continue to compensate the Executive in accordance with this Agreement.  After the three (3) months the Company will continue to pay the Executive his salary for the greater of twelve (12) months or the remainder of the Term of this Agreement.  All outstanding options held by the Executive shall immediately vest and shall remain outstanding for the remainder of the stated term of said options.

4

e.            Voluntary Termination.  In the event the Executive terminates his employment voluntarily, except as provided in Section 6(f), prior to the expiration of the Term of this Agreement, including any renewals thereof, Executive shall be limited to salary, and vested equity and stock options earned to the date of voluntary termination.  The Executive will be expected to give 30 days notice of termination to allow the Company a transition period to the new executive.  The Executive can terminate this Agreement without the foregoing 30 day notice if in his professional judgment the circumstances require his immediate resignation.  The Company will be obligated to compensate the Executive through the actual termination date.

f.            Termination Following a Change of Control.

(1)            In the event that a “Change of Control" of the Company shall occur at any time during the Term hereof, the Executive shall have the right to terminate the Executive's employment under this Agreement upon thirty (30) days written notice given at any time within six (6) months after the occurrence of such Change in Control.

(2)            For purposes of this Agreement, "Change in Control" shall mean the occurrence of any of the following events:

(A)            one person or entity (or more than one person or entity acting as a group) acquires ownership of stock of the Company that, together with the stock held by such person or group, constitutes more than 50% of the total fair market value or total voting power of the stock of such corporation; provided that, a Change in Control shall not occur if any person or entity (or more than one person or entity acting as a group) owns more than 50% of the total fair market value or total voting power of the Company's stock and acquires additional stock; or

(B)            a majority of the members of the Board of Directors are replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the Board before the date of appointment or election; or

(C)            Michael Schroering is replaced as the Company’s CEO; or

(D)            the sale of all or substantially all of the Company's assets; or

(E)            the merger of the Company into or consolidation with another entity and, after giving effect to such merger or consolidation, the holders of stock of the Company immediately prior to such merger or consolidation own less than 51% of the stock of the surviving entity after such merger or consolidation.

5

(3)            In the event of such termination of the Executive's employment pursuant to a Change of Control, Executive shall be entitled to (A) immediate vesting of all options previously awarded; and (B) the continued payment of the Executive’s salary for a period of twelve (12) months.

7.             Covenant Not to Compete and Non‐Disclosure of Information.

a.            Covenant Not to Compete.  The Executive acknowledges and recognizes the highly competitive nature of the Company's Business and the goodwill, continued patronage, and specifically the names and addresses of the Company's Clients (as hereinafter defined) constitute a substantial asset of the Company, having been acquired through considerable time, money and effort.  Accordingly, in consideration of the execution of this Agreement, in the event the Executive's employment is terminated by reason of disability pursuant to Section 6(b) or for Cause pursuant to Section 6(c), then the Executive agrees to the following:

(1)            That during the Restricted Period (as hereinafter defined) and within the Restricted Area (as hereinafter defined), the Executive will not, individually or in combination with others, directly or indirectly, engage in any Competitive Business Activities (as hereinafter defined), whether as an officer, director, proprietor, employer, partner, independent contractor, investor (other than as a holder solely as an investment of less than 1% of the outstanding capital stock of a publicly traded corporation), consultant, advisor or agent.

(2)            That during the Restricted Period and within the Restricted Area, the Executive will not, directly or indirectly, compete with the Company by soliciting, inducing or influencing any of the Company's Clients which have a business relationship with the Company at the time during the Restricted Period to discontinue or reduce the extent of such relationship with the Company.

b.            Non‐Disclosure of Information.  Executive agrees that Executive will not use or disclose any “Proprietary Information” of the Company for the Executive's own purposes or for the benefit of any entity engaged in Competitive Business Activities.  As used herein, the term "Proprietary Information" shall mean trade secrets, knowhow, confidential proprietary information, Company operations, or other nonpublic information of or about the Company which are material to the conduct of the Business.  No information can be considered Proprietary Information if the same is otherwise in the public domain.  It shall not be a violation of this Agreement if Executive is required to disclose any Proprietary Information by order of any court or by reason of any statute, law, rule, regulation, ordinance or other governmental requirement.  Executive further agrees that in the event his employment is terminated, all Documents in his possession at the time of his termination shall be returned to the Company at the Company's principal place of business and at the Company’s expense.  This covenant and obligation of Non-Disclosure and non-use of Proprietary Information shall continue in effect and shall survive the termination of this Agreement through the end of the Restricted Period.

6

c.            Documents.  "Documents" shall mean all original written, recorded, or graphic matters whatsoever, and any and all copies thereof, including, but not limited to:  papers; books; records; tangible things; correspondence; communications; electronic  messages or data of any kind, regardless of medium or format, including software, databases and any computer record of any type or description whatsoever; memoranda; notes and working papers; reports; affidavits; statements; summaries; analyses; evaluations; client records and information; agreements; agendas; advertisements; instructions; charges; manuals; brochures; publications; directories; industry lists; schedules; price lists; client lists; statistical records; training manuals; computer printouts; books of account, records and invoices reflecting business operations; all things similar to any of the foregoing however denominated.  In all cases where originals are not available, the term "Documents" shall also mean identical copies of original documents or non-identical copies thereof.  Electronic records and copies shall be deemed the equivalent of any tangible version of the same record, regardless of where or how stored or retained.

d.            Company's Clients.  The "Company's Clients" shall be deemed to be any partnerships, corporations, professional associations or other business organizations of any kind for whom the Company has performed Competitive Business Activities.

e.            Restricted Period and Area.  The "Restrictive Period" shall be deemed to be twelve (12) months following termination of Executive’s employment under this Agreement.  The Restricted Area shall be the continental United States.

f.            Competitive Business Activities.  The term "Competitive Business Activities" as used herein shall be deemed to mean the Business of the Company, as described herein.

g.            Covenants as Essential Elements of this Agreement.  It is understood by and between the parties hereto that the foregoing covenants contained in Sections 7(a) and (b) are essential elements of this Agreement, and that but for the agreement by the Executive to comply with such covenants, the Company would not have agreed to enter into this Agreement.  Such covenants by the Executive shall be construed to be agreements independent of any other provisions of this Agreement.  The existence of any other claim or cause of action, whether predicated on any other provision in this Agreement, or otherwise, as a result of the relationship between the parties shall not constitute a defense to the enforcement of such covenants against the Executive.

h.            Survival After Termination of Agreement.  Notwithstanding anything to the contrary contained in this Agreement, the covenants in Sections 7(a) and (b) shall survive the termination of this Agreement and the Executive's employment with the Company.

7

i.            Remedies.

(1)            The Executive acknowledges and agrees that the Company's remedy at law for a breach or threatened breach of any of the provisions of Section 7(a) or (b) herein would be inadequate and a breach thereof will cause irreparable harm to the Company.  In recognition of this fact, in the event of a breach by the Executive of any of the provisions of Section 7(a) (b) or (c), the Executive agrees that, in addition to any remedy at law available to the Company, including, but not limited to monetary damages, all rights of the Executive to payment or otherwise under this Agreement and all amounts then or thereafter due to the Executive from the Company under this Agreement may be terminated and the Company, without posting any bond, shall be entitled to obtain, and the Executive agrees not to oppose the Company's request for equitable relief in the form of specific performance, temporary restraining order, temporary or permanent injunction or any other equitable remedy which may then be available to the Company.

(2)            The Executive acknowledges that the granting of a temporary injunction, temporary restraining order or permanent injunction merely prohibiting the use of Proprietary Information would not be an adequate remedy upon breach or threatened breach of Section 7(a) (b) or (c) and consequently agrees, upon proof of any such breach, to the granting of injunctive relief prohibiting any form of competition with the Company or further damage to the Company.  Nothing herein contained shall be construed as prohibiting the Company from pursuing any other remedies available to it for such breach or threatened breach.

8.             Indemnification.

The Executive shall be entitled to indemnification and defense by the Company to the full extent allowed by law, subject to and in accordance with the execution of the Company’s customary Indemnification Agreement—as established from time to time by the Company’s Board of Directors—to protect the Company’s officers and directors in the ordinary and prudent exercise of their duties to the Company—including the benefits of any insurance coverage that the Company may purchase or have in effect.  To the extent that any such insurance coverage may not be sufficient or applicable, the Executive shall have the right to reimbursement and indemnification by the Company, in accordance with the Company’s Indemnification Agreement in effect at the time of any relevant loss or claim.  Nothing in this Agreement shall be deemed to alter, amend, limit, or vary any of the terms of the Company’s duly approved Indemnification Agreement or its effective date, as modified from time to time within the sole discretion of the Company’s Board’s of Directors.

9.             Withholding.  Anything to the contrary notwithstanding, all payments required to be made by the Company hereunder to the Executive or the Executive's estate or beneficiaries shall be subject to the withholding of such amounts, if any, relating to tax and other payroll deductions as the Company may reasonably determine it should withhold pursuant to any applicable law or regulation.  In lieu of withholding such amounts, the Company may accept other arrangements pursuant to which it is satisfied that such tax and other payroll obligations will be satisfied in a manner complying with applicable law or regulation.  Notwithstanding the foregoing, the Executive shall be solely and entirely responsible for his own compliance with applicable tax laws and regulations, in whatever form, venue or jurisdiction that may apply, and nothing in this Agreement shall be deemed to be any assumption of responsibility by the Company for any liability of the Executive for applicable taxes, fines or penalties.  By executing this Agreement and signing in the space provided below, the Executive acknowledges that he has obtained his own tax counsel and advice with regard to this Agreement and that he assumes all responsibility and liability for any taxes that may be due or payable by law, and that he has not relied on any representation by the Company, or by any officer or director of the Company, with regard to the tax consequences of this Agreement, including any issue with respect to the concept of statutory employee.

8

10.          Notices.  Any notice required or permitted to be given under the terms of this Agreement shall be sufficient if in writing and if sent postage prepaid by registered or certified mail, return receipt requested; by overnight delivery; by courier; or by confirmed telecopy, or by any verifiable electronic means of transmission - in the case of the Executive to the Executive's last place of business or residence as shown on the records of the Company, or in the case of the Company to its principal office at the time of any such notice, or at such other place as it may designate.

11.          Waiver.  Unless agreed in writing, the failure of either party, at any time, to require performance by the other of any provisions hereunder shall not affect its right thereafter to enforce the same, nor shall a waiver by either party of any breach of any provision hereof be taken or held to be a waiver of any other preceding or succeeding breach of any term or provision of this Agreement.  No extension of time for the performance of any obligation or act shall be deemed to be an extension of time for the performance of any other obligation or act hereunder.

12.          Completeness and Modification.  This Agreement constitutes the entire understanding between the parties hereto, superseding all prior and contemporaneous agreements or understandings among the parties hereto concerning the Employment Agreement.  This Agreement may be amended, modified, superseded or canceled, and any of the terms, covenants, representations, warranties or conditions hereof may be waived, only by a written instrument executed by the parties or, in the case of a waiver, by the party to be charged.

13.          Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original but all of which shall constitute but one agreement.  Signatures transmitted by electronic or photographic means shall, in the absence of fraud, be as valid and effective for all lawful purposes the same as the original.

14.          Binding Effect/Assignment.  This Agreement shall be binding upon the parties hereto, their heirs, legal representatives, successors and assigns.  This Agreement shall not be assignable by the Executive but shall be assignable by the Company in connection with the sale, transfer or other disposition of its business or to any of the Company's affiliates controlled by or under common control with the Company.

15.          Governing Law.  This Agreement shall become valid when executed and accepted by Company.  The parties agree that it shall be deemed made and entered into within the State of Florida and shall be governed and construed under and in accordance with the laws of the State of Florida, without regard to any conflicts of laws provisions.  Anything in this Agreement to the contrary notwithstanding, the Executive shall conduct the Executive's business in a lawful manner and faithfully comply with applicable laws or regulations of the state, city or other political subdivision in which the Business or services under this Agreement may be located.

9

16.          Further Assurances.  All parties hereto shall execute and deliver such other instruments and do such other acts as may be necessary to carry out the intent and purposes of this Agreement.

17.          Headings.  The headings of the sections are for convenience only and shall not control or affect the meaning or construction or limit the scope or intent of any of the provisions of this Agreement.

18.          Survival.  Any termination of this Agreement shall not, however, affect the ongoing provisions of this Agreement which shall survive such termination in accordance with their terms.

19.          Severability.  The invalidity or unenforceability, in whole or in part, of any covenant, promise or undertaking, or any section, subsection, paragraph, sentence, clause, phrase or word or of any provision of this Agreement shall not affect the validity or enforceability of the remaining portions thereof.

20.          Enforcement.  Should it become necessary for any party to institute legal action or other proceeding to enforce the terms and conditions of this Agreement, the successful party will be awarded its actual expenses and out-of-pocket costs, including its reasonable attorneys' fees as paid at all trial and appellate levels.

21.          Venue.  Company and Employee acknowledge and agree that the Judicial Circuit Court in and for Hillsborough County, Florida, shall be the venue and exclusive proper forum in which to adjudicate any case or controversy arising either, directly or indirectly, under or in connection with this Agreement and the parties further agree that, in the event of litigation arising out of or in connection with this Agreement in these courts, they will not contest or challenge the jurisdiction or venue of these courts.

22.          Construction.  This Agreement shall be construed within the fair meaning of each of its terms and not against the party drafting the document.

THE PARTIES ACKNOWLEDGE THAT THEY HAVE READ THIS ENTIRE AGREEMENT, HAVE HAD THE OPPORTUNITY TO DISCUSS THIS WITH COUNSEL OF THEIR OWN CHOOSING; AND FURTHER ACKNOWLEDGE THAT THEY UNDERSTAND THE RESTRICTIONS, TERMS AND CONDITIONS IMPOSED UPON THEM BY THIS AGREEMENT; AND THAT THESE RESTRICTIONS, TERMS AND CONDITIONS MAY BE BINDING UPON BOTH THE COMPANY AND THE EXECUTIVE DURING AND AFTER TERMINATION OF THE EMPLOYMENT OF THE EXECUTIVE.

10

IN WITNESS WHEREOF, the parties have executed this Agreement as of date set forth in the first paragraph of this Agreement.

	
Witness:

	
 

	
The Company:

	
 

	
 

	
 

	
 

	
 

	
 

	
General Employment Enterprises, Inc.

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Michael Schroering

	
 

	
 

	
Name:

	
Michael Schroering

	
 

	
 

	
Title:

	
Chief Executive Officer

	
 

	
 

	
 

	
 

	
Witness:

	
 

	
The Executive

	
 

	
 

	
 

	
 

	
 

	
 

	
By:

	
/s/ Andrew J. Norstrud

	
 

	
 

	
Name:

	
Andrew J. Norstrud

 

 

11EXECUTION COPY

 

LOAN AND SECURITY AGREEMENT

 

among

 

BOOMERANG SYSTEMS, INC.

BOOMERANG SUB, INC.

BOOMERANG USA CORP.

BOOMERANG MP HOLDINGS, INC.

(BORROWERS),

 

THE LENDERS PARTY HERETO FROM TIME
TO TIME

 

and

 

PARKING SOURCE LLC

 

(AGENT)

 

June 6, 2013

 

    	 

    	 

    

 

TABLE OF CONTENTS

 

	 	 	Page
	 	 	 
	I.	DEFINITIONS.	1
	1.1.	Accounting Terms	1
	1.2.	General Terms	1
	1.3.	Uniform Commercial Code Terms	18
	1.4.	Certain Matters of Construction	19
	 	 	 
	II.	ADVANCES, PAYMENTS.	19
	2.1.	Advances	19
	2.2.	Procedures for Requesting Advances	20
	2.3.	Disbursement of Advance Proceeds	20
	2.4.	Making of Advances.	20
	2.5.	Manner and Repayment of Advances.	21
	2.6.	Repayment of Excess Advances	21
	2.7.	Statement of Account	21
	2.8.	Use of Proceeds	22
	2.9.	Defaulting Lender.	22
	2.10.	Incremental Advance Commitments.	23
	 	 	 
	III.	INTEREST AND FEES.	24
	3.1.	Interest	24
	3.2.	Computation of Interest and Fees	24
	3.3.	Maximum Charges	24
	3.4.	Taxes.	24
	3.5.	Replacement of Lenders	27
	 	 	 
	IV.	COLLATERAL:  GENERAL TERMS	27
	4.1.	Security Interest in the Collateral	27
	4.2.	Perfection of Security Interest	28
	4.3.	Preservation of Collateral	28
	4.4.	Ownership and Location of Collateral.	29
	4.5.	Defense of Agent’s and Lenders’ Interests	29
	4.6.	Inspection of Premises	30
	4.7.	Receivables.	30
	4.8.	Maintenance of Equipment	31
	4.9.	Exculpation of Liability	31
	4.10.	Financing Statements	31
	 	 	 
	V.	REPRESENTATIONS AND WARRANTIES.	31
	5.1.	Authority	31
	5.2.	Formation and Qualification.	32
	5.3.	Survival of Representations and Warranties	32
	5.4.	Tax Returns	32

 

    	i

    	 

    

 

	5.5.	Financial Statements.	32
	5.6.	Entity Names	33
	5.7.	O.S.H.A. Environmental Compliance and Flood Insurance.	33
	5.8.	Solvency; No Litigation, Violation, Indebtedness or Default; ERISA Compliance.	34
	5.9.	Patents, Trademarks, Copyrights and Licenses	35
	5.10.	Licenses and Permits	35
	5.11.	Default of Indebtedness	35
	5.12.	No Default	35
	5.13.	No Burdensome Restrictions	36
	5.14.	No Labor Disputes	36
	5.15.	Margin Regulations	36
	5.16.	Investment Company Act	36
	5.17.	Disclosure	36
	5.18.	Business and Property of Borrowers	36
	5.19.	Equity Interests	37
	5.20.	Commercial Tort Claims	37
	5.21.	Letter of Credit Rights	37
	5.22.	Material Contracts	37
	5.23.	Insurance	37
	 	 	 
	VI.	AFFIRMATIVE COVENANTS.	37
	6.1.	Compliance with Laws	37
	6.2.	Conduct of Business and Maintenance of Existence and Assets	37
	6.3.	Books and Records	38
	6.4.	Payment of Taxes	38
	6.5.	Insurance.	38
	6.6.	Payment of Indebtedness and Leasehold Obligations	39
	6.7.	Environmental Matters.	30
	6.8.	Standards of Financial Statements	40
	6.9.	Execution of Supplemental Instruments	41
	6.10.	Post Closing Covenants.	41
	 	 	 
	VII.	NEGATIVE COVENANTS.	41
	7.1.	Merger, Consolidation, Acquisition and Sale of Assets.	41
	7.2.	Creation of Liens	41
	7.3.	Investments	41
	7.4.	Loans	42
	7.5.	Capital Expenditures	42
	7.6.	Dividends	42
	7.7.	Indebtedness	42
	7.8.	Nature of Business	42
	7.9.	Transactions with Affiliates	42
	7.10.	Leases	42
	7.11.	Subsidiaries.	43
	7.12.	Fiscal Year and Accounting Changes	43
	7.13.	Amendment of Organizational Documents	43

 

    	ii

    	 

    

 

	7.14.	Compliance with ERISA	43
	7.15.	Prepayment of Indebtedness	43
	7.16.	Other Agreements	44
	7.17.	Schedule of Base Operating Expenses Variances	44
	 	 	 
	VIII.	CONDITIONS PRECEDENT.	44
	8.1.	Conditions to Initial Advances	44
	8.2.	Conditions to Each Advance	46
	 	 	 
	IX.	INFORMATION AS TO BORROWERS.	46
	9.1.	Environmental Reports.	47
	9.2.	Litigation	47
	9.3.	Material Occurrences	47
	9.4.	Annual Financial Statements	48
	9.5.	Quarterly Financial Statements	48
	9.6.	Other Reports	48
	9.7.	Budget	48
	9.8.	Variances From Schedule of Base Operating Expenses	49
	9.9.	Notice of Suits, Adverse Events	49
	9.10.	ERISA Notices and Requests	49
	9.11.	Additional Documents	50
	9.12.	Updates to Certain Schedules	50
	9.13.	Financial Disclosure	50
	 	 	 
	X.	EVENTS OF DEFAULT.	50
	10.1.	Nonpayment	50
	10.2.	Breach of Representation	50
	10.3.	Financial Information	50
	10.4.	Judicial Actions	51
	10.5.	Noncompliance	51
	10.6.	Judgments	51
	10.7.	Bankruptcy	51
	10.8.	Lien Priority	51
	10.9.	Cross Default	51
	10.10.	Change of Control	52
	10.11.	Invalidity	52
	10.12.	Pension Plans	52
	10.13.	Reportable Compliance Event	52
	10.14.	Certain Agreements	52
	 	 	 
	XI.	LENDERS’ RIGHTS AND REMEDIES AFTER DEFAULT.	52
	11.1.	Rights and Remedies	52
	11.2.	Agent’s Discretion	53
	11.3.	Rights and Remedies not Exclusive	53
	11.4.	Allocation of Payments After Event of Default	53

 

    	iii

    	 

    

 

	XII.	WAIVERS AND JUDICIAL PROCEEDINGS.	54
	12.1.	Waiver of Notice	54
	12.2.	Delay	54
	12.3.	Jury Waiver	54
	 	 	 
	XIII.	EFFECTIVE DATE AND TERMINATION.	55
	13.1.	Term.	55
	13.2.	Termination	55
	 	 	 
	XIV.	REGARDING AGENT.	55
	14.1.	Appointment	55
	14.2.	Nature of Duties	56
	14.3.	Lack of Reliance on Agent	56
	14.4.	Resignation of Agent; Successor Agent	57
	14.5.	Certain Rights of Agent	57
	14.6.	Reliance	57
	14.7.	Notice of Default	58
	14.8.	Indemnification	58
	14.9.	Agent in its Individual Capacity	58
	14.10.	Delivery of Documents	58
	 	 	 
	XV.	BORROWING AGENCY.	58
	15.1.	Borrowing Agency Provisions.	58
	15.2.	Waiver of Subrogation	59
	 	 	 
	XVI.	MISCELLANEOUS.	60
	16.1.	Governing Law	60
	16.2.	Entire Understanding.	60
	16.3.	Successors and Assigns; Participations.	61
	16.4.	Application of Payments	63
	16.5.	Indemnity	63
	16.6.	Notice	64
	16.7.	Survival	66
	16.8.	Severability	66
	16.9.	Expenses	66
	16.10.	Consequential Damages	66
	16.11.	Captions	66
	16.12.	Counterparts; Facsimile Signatures	67
	16.13.	Construction	67
	16.14.	Confidentiality; Sharing Information	67
	16.15.	Anti-Money Laundering/International Trade Law Compliance	67
	16.16.	No Fiduciary Duty	68
	16.17.	Set-Off	68

 

    	iv

    	 

    

 

LIST OF
EXHIBITS AND SCHEDULES

 

	Exhibits	 
	 	 
	Exhibit 1.2(a)	Compliance Certificate
	Exhibit 1.2 (b)	Warrant
	Exhibit 1.2(c)	Consent, Waiver and Agreement of Existing Creditors
	Exhibit 2.1	Note
	Exhibit 4.2	Landlord Personal Property Collateral Access Agreement
	Exhibit 16.3	Commitment Transfer Supplement
	 	 
	Schedules	 
	 	 
	Schedule 1.2(a)	Permitted Encumbrances
	Schedule 4.4(b)	Place of Business, Chief Executive Office, Real Property
	Schedule 5.1	Consents
	Schedule 5.2(a)	States of Qualification and Good Standing
	Schedule 5.2(b)	Subsidiaries of Borrowers
	Schedule 5.4	Federal Tax Identification Number
	Schedule 5.6	Prior Names
	Schedule 5.8(b)(i)	Litigation
	Schedule 5.8(b)(ii)	Indebtedness
	Schedule 5.8(d)	Plans
	Schedule 5.9	Intellectual Property
	Schedule 5.10	Licenses and Permits
	Schedule 5.14	Labor Disputes
	Schedule 5.19(a)	Equity Interests
	Schedule 5.19(b)	Option
	Schedule 5.19(c)	Convertible Securities
	Schedule 5.20	Commercial Tort Claims
	Schedule 5.22	Material Contracts
	Schedule 7.9	Transactions with Affiliates

 

    	v

    	 

    

 

LOAN AND SECURITY AGREEMENT

 

Loan and Security Agreement
dated as of June 6, 2013 among BOOMERANG SYSTEMS, INC., a corporation organized under the
laws of the State of Delaware (“Holdings”), BOOMERANG SUB, INC., a corporation
organized under the laws of the State of Delaware (“Boom Sub”), BOOMERANG USA CORP., a corporation organized under
the laws of the State of Delaware (“Boom USA”), and BOOMERANG MP HOLDINGS, INC., a corporation organized under the
laws of the State of New Jersey (“Boom MP” and together with Holdings, Boom Sub, Boom USA and each Person joined hereto
as a borrower from time to time, collectively, the “Borrowers”, and each a “Borrower”), the lenders now
or hereafter a party hereto (collectively, the “Lenders” and each individually a “Lender”) and PARKING
SOURCE LLC, as agent for itself and the other Lenders (in such capacity, the “Agent”).

 

IN CONSIDERATION of
the mutual covenants and undertakings herein contained, Borrowers, Lenders and Agent hereby agree as follows:

 

I.            DEFINITIONS.

 

1.1.          Accounting
Terms. As used in this Agreement, the Other Documents or any certificate, report or
other document made or delivered pursuant to this Agreement, accounting terms not defined in Section 1.2 or elsewhere in this Agreement
and accounting terms partly defined in Section 1.2 to the extent not defined shall have the respective meanings given to them under
GAAP. If there occurs after the Closing Date any change in GAAP that affects in any respect the calculation of any covenant contained
in this Agreement or the definition of any term defined under GAAP used in such calculations, Agent, Lenders and Borrowers shall
negotiate in good faith to amend the provisions of this Agreement that relate to the calculation of such covenants with the intent
of having the respective positions of Agent, Lenders and Borrowers after such change in GAAP conform as nearly as possible to their
respective positions as of the Closing Date, provided, that, until any such amendments have been agreed upon, the covenants in
this Agreement shall be calculated as if no such change in GAAP had occurred and Borrowers shall provide additional financial statements
or supplements thereto, attachments to Compliance Certificates and/or calculations regarding financial covenants as Agent may reasonably
require in order to provide the appropriate financial information required hereunder with respect to Borrowers both reflecting
any applicable changes in GAAP and as necessary to demonstrate compliance with the financial covenants before giving effect to
the applicable changes in GAAP.

 

1.2.          General
Terms. For purposes of this Agreement the following terms shall have the following
meanings:

 

“Accountants”
shall have the meaning set forth in Section 9.4.

 

“Advances”
shall mean loans made pursuant to Section 2.1.

 

“Affected
Lender” shall have the meaning set forth in Section 3.5.

 

    	 

    	 

    

 

“Affiliate”
of any Person shall mean (a) any Person which, directly or indirectly, is in control of, is controlled by, or is under common control
with such Person, or (b) any Person who is a director, shareholder, manager, member, managing member, general partner or officer
(i) of such Person, (ii) of any Subsidiary of such Person or (iii) of any Person described in clause (a) above. For purposes of
this definition, control of a Person shall mean the power, direct or indirect, (x) to vote 5% or more of the Equity Interests having
ordinary voting power for the election of directors of such Person or other Persons performing similar functions for any such Person,
or (y) to direct or cause the direction of the management and policies of such Person whether by ownership of Equity Interests,
contract or otherwise.

 

“Agent”
shall have the meaning set forth in the preamble to this Agreement and shall include its successors and assigns.

 

“Agreement”
shall mean this Loan and Security Agreement, as the same may be amended, restated, supplemented or otherwise modified from time
to time.

 

“Anti-Terrorism
Laws” shall mean any Laws relating to terrorism, trade sanctions programs and embargoes, import/export licensing, money
laundering or bribery, all as amended, supplemented or replaced from time to time.

 

“Applicable
Law” shall mean all laws, rules and regulations applicable to the Person, conduct, transaction, covenant, Other Document
or contract in question, including all applicable common law and equitable principles, all provisions of all applicable state,
federal and foreign constitutions, statutes, rules, regulations, treaties, directives and orders of any Governmental Body, and
all orders, judgments and decrees of all courts and arbitrators.

 

“Approvals”
shall have the meaning set forth in Section 5.7(b).

 

“Benefited
Lender” shall have the meaning set forth in Section 2.4(d).

 

“Boom MP” shall have
the meaning set forth in the preamble to this Agreement.

 

“Borrower”
or “Borrowers” shall have the meaning set forth in the preamble to this Agreement and shall extend to all permitted
successors and assigns of such Persons.

 

“Borrowing
Agent’s Account” shall mean the account of the Borrowing Agent maintained as of the Closing Date with Highlands
State Bank and bearing account number 0120011705 or such other account as Borrowing Agent may designate in writing to Agent and
Lenders.

 

“Borrowing
Agent” shall mean Holdings.

 

“Brickell
House Purchase Agreement” shall have the meaning set forth in Section 8.1(k).

 

“Brickell
House Project” shall mean the property located at 1390 Brickell Bay Drive, Miami, Florida, upon which a multifamily residential
project utilizing an automated parking facility to be provided by Holdings is under development.

 

“Budget”
shall mean the budget prepared by Borrowing Agent for the period commencing on June 1, 2013 and ending on September 30, 2014 or
the most recent budget prepared by Borrowing Agent in accordance with Section 9.7 for the fiscal year specified therein, and in
each case setting forth on a monthly basis for such period or fiscal year all general, administrative and operating expenses of
Borrowers on a consolidated basis, as the same may be amended from time to time in accordance with Section 9.7.

 

    	2

    	 

    

 

“Business
Day” shall mean any day other than Saturday or Sunday or a legal holiday on which commercial banks are authorized or
required by law to be closed for business in Florham Park, New Jersey.

 

“Capital Expenditures”
shall mean expenditures made or liabilities incurred for the acquisition of any fixed assets or improvements (or of any replacements
or substitutions thereof or additions thereto) which have a useful life of more than one year and which, in accordance with GAAP,
would be classified as capital expenditures. Capital Expenditures shall include the total principal portion of Capitalized Lease
Obligations.

 

“Capitalized
Lease Obligation” shall mean any Indebtedness of any Borrower represented by obligations under a lease that is required
to be capitalized for financial reporting purposes in accordance with GAAP.

 

“CERCLA”
shall mean the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended, 42 U.S.C. §§9601
et seq.

 

“Change of
Control” shall mean the occurrence of either of the following events: (i) a person or group (as defined in Section 13(d)
of the Exchange Act), other than Chris Mulvihill, Mark Patterson, Burton Koffman or any of their respective Affiliates, becomes
the direct or indirect beneficial owner (as defined in Rule 13d-3 under the Exchange Act) of capital stock representing 50% or
more of the voting power entitled to vote generally in the election of directors of Holdings, or (ii) Holdings shall cease to own
directly or indirectly 100% of the Equity Interests of each of Boom Sub, Boom USA and Boom MP.

 

“Charges”
shall mean all taxes, charges, fees, imposts, levies or other assessments, including all net income, gross income, gross receipts,
sales, use, ad valorem, value added, transfer, franchise, profits, inventory, capital stock, license, withholding, payroll, employment,
social security, unemployment, excise, severance, stamp, occupation and property taxes, custom duties, fees, assessments, liens,
claims and charges of any kind whatsoever, together with any interest and any penalties, additions to tax or additional amounts,
imposed by any taxing or other authority, domestic or foreign (including the Pension Benefit Guaranty Corporation or any environmental
agency or superfund), upon the Collateral, any Borrower or any of its Affiliates.

 

“Closing Date”
shall mean the date of this Agreement.

 

“Code”
shall mean the Internal Revenue Code of 1986, as the same may be amended or supplemented from time to time, and any successor statute
of similar import, and the rules and regulations thereunder, as from time to time in effect.

 

“Collateral”
shall mean and include all right, title and interest of each Borrower in all of the following property and assets of such Borrower,
in each case whether now existing or hereafter arising or created and whether now owned or hereafter acquired and wherever located:

 

    	3

    	 

    

 

(i)          all
equipment;

 

(ii)         all
accounts receivable;

 

(iii)        all
inventory;

 

(iv)        any
and all monies, reserves, deposits, deposit accounts, securities, cash, cash equivalents, balances, credits, and interest and dividends
on any of the foregoing;

 

(v)         all
chattel paper, whether tangible or electronic chattel paper, contract rights, letter of credit rights, documents and instruments,
and all supporting obligations;

 

(vi)        all
general intangibles, including any and all Intellectual Property;

 

(vii)       all
Equity Interests of the Borrowers owned beneficially and of record by Holdings;

 

(viii)      all
investment property;

 

(ix)         all
furniture and fixtures;

 

(x)          all
goods and all documents of title and receipts, whether negotiable or non-negotiable, including all goods covered by such documents;

 

(xi)         all
commercial tort claims;

 

(xii)        all
books, records and computer records in any way relating to the above property;

 

(xiii)       any
and all accessions, improvements and additions to, and substitutions, renewals, replacements and proceeds of (i) through (xii)
above; and

 

(xiv)      all
of the proceeds and products, whether tangible or intangible, of any of the foregoing, including proceeds of insurance or commercial
tort claims covering or relating to any or all of the foregoing, and any and all accounts receivable, books and records, chattel
paper, deposit accounts, equipment, general intangibles, inventory, investment property, negotiable collateral, supporting obligations,
money, or other tangible or intangible property resulting from the sale, lease, license, exchange, collection, or other disposition
of any of the foregoing, the proceeds of any award in condemnation with respect to any of the foregoing, any rebates or refunds,
whether for taxes or otherwise, and all proceeds of any such proceeds, or any portion thereof or interest therein, and the proceeds
thereof, and all proceeds of any loss of, damage to, or destruction of the above, whether insured or not insured, and, to the extent
not otherwise included, any indemnity, warranty, or guaranty payable by reason of loss or damage to, or otherwise with respect
to any of the foregoing. Without limiting the generality of the foregoing, the Collateral described in this paragraph (xiv) includes
whatever is receivable or received when investment property or proceeds are sold, exchanged, collected, or otherwise disposed of,
whether such disposition is voluntary or involuntary, and includes proceeds of any indemnity or guaranty payable to any Borrower
from time to time with respect to any of the investment property.

 

    	4

    	 

    

 

“Consent,
Waiver and Agreement of Existing Creditors” shall mean the Consent, Waiver and Agreement, in substantially the form attached
hereto as Exhibit 1.2(c), of (i) all of the holders of Holdings’ 6% convertible promissory notes due 2016, June 2017 and
December 2017 who are related parties of the Borrowers and (ii) other holders of Holdings’ 6% convertible promissory notes
due 2016, June 2017 and December 2017 who are not related parties of the Borrowers such that such holders described in clauses
(i) and (ii) represent at least a majority of the aggregate principal amount of each of Holdings’ 6% convertible promissory
notes due 2016, June 2017 and December 2017.

 

“Commitment”
shall mean, as to any Lender, the obligation of such Lender (if applicable), to make Advances, in an aggregate principal amount
not to exceed the Commitment Amount (if any) of such Lender.

 

“Commitment
Amount” shall mean, as to any Lender, the Commitment amount (if any) set forth below such Lender’s name on the
signature page hereto (or, in the case of (i) any Lender that became party to this Agreement after the Closing Date pursuant to
Section 16.3(c), the Commitment amount (if any) of such Lender as set forth in the applicable Commitment Transfer Supplement and
(ii) any Incremental Lender that becomes a party to this Agreement after the Closing Date pursuant to Section 2.10, the Incremental
Advance Commitment of such Incremental Lender).

 

“Commitment
Percentage” shall mean, as to any Lender, the Commitment Percentage (if any) set forth below such Lender’s name
on the signature page hereof (or, in the case of any Lender that became party to this Agreement after the Closing Date pursuant
to (i) Section 16.3(c), the Commitment Percentage (if any) of such Lender as set forth in the applicable Commitment Transfer Supplement
or (ii) Section 2.10, the Incremental Advance Commitment of such Lender as set forth in the applicable Incremental Advance Amendment).

 

“Commitment
Transfer Supplement” shall mean a document in the form of Exhibit 16.3 hereto, properly completed and otherwise in form
and substance satisfactory to Agent by which the Purchasing Lender purchases and assumes a portion of the obligation of Lenders
to make Advances under this Agreement.

 

“Compliance
Authority” shall mean each and all of the (a) U.S. Treasury Department/Office of Foreign Assets Control, (b) U.S. Treasury
Department/Financial Crimes Enforcement Network, (c) U.S. State Department/Directorate of Defense Trade Controls, (d) U.S. Commerce
Department/Bureau of Industry and Security, (e) the U.S. Internal Revenue Service, (f) the U.S. Justice Department, and (g) the
U.S. Securities and Exchange Commission.

 

“Compliance
Certificate” shall mean a compliance certificate substantially in the form of Exhibit 1.2(a) hereto to be signed by the
Chief Executive Officer, the President, the Chief Financial Officer or the Chief Operating Officer of Borrowing Agent.

 

    	5

    	 

    

 

“Consents”
shall mean all filings and all licenses, permits, consents, approvals, authorizations, qualifications and orders of Governmental
Bodies and other third parties, domestic or foreign, necessary to carry on any Borrower’s business or necessary (including
to avoid a conflict or breach under any agreement, instrument, other document, license, permit or other authorization) for the
execution, delivery or performance of this Agreement or the Other Documents, including any Consents required under all applicable
federal, state or other Applicable Law.

 

“Controlled
Group” shall mean, at any time, each Borrower and all members of a controlled group of corporations and all trades or
businesses (whether or not incorporated) under common control and all other entities which, together with any Borrower, are treated
as a single employer under Section 414 of the Code.

 

“Copyrights”
shall mean, as to any Person, all of such Person’s now existing or hereafter acquired right, title, and interest in and to:
(i) copyrights, rights and interests in copyrights, works protectable by copyright, all applications, registrations and recordings
relating to the foregoing as may at any time be filed in the United States Copyright Office or in any similar office or agency
of the United States, any State thereof, any political subdivision thereof or in any other country, and (ii) all renewals of any
of the foregoing.

 

“Covered Entity”
shall mean each Borrower, each Borrower’s Affiliates and Subsidiaries, pledgors of Collateral, all owners of the foregoing,
and all brokers or other agents of any Borrower acting in any capacity in connection with the Obligations.

 

“Customer”
shall mean and include the account debtor with respect to any Receivable and/or the prospective purchaser of goods, services or
both with respect to any contract or contract right, and/or any party who enters into or proposes to enter into any contract or
other arrangement with any Borrower, pursuant to which such Borrower is to deliver any personal property or perform any services.

 

“Default”
shall mean an event, circumstance or condition which, with the giving of notice or passage of time or both, would constitute an
Event of Default.

 

“Default Rate”
shall have the meaning set forth in Section 3.1.

 

“Defaulting
Lender” shall mean any Lender that: (a) has failed, within two Business Days of the date required to be funded or paid,
to (i) fund any portion of the amount of an Advance such Lender is required to make pursuant to this Agreement, (ii) if applicable,
fund any portion of its Participation Commitment in Letters of Credit or (iii) pay over to the Agent, the Borrowing Agent or any
Lender any other amount required to be paid by it hereunder, unless, in the case of clause (i) above, such Lender notifies the
Agent in writing that such failure is the result of such Lender’s good faith determination that a condition precedent to
funding an Advance under this Agreement (specifically identified and including a particular Default or Event of Default, if any)
has not been satisfied; (b) has notified the Borrowers or the Agent in writing, or has made a public statement to the effect, that
it does not intend or expect to comply with any of its funding obligations under this Agreement (unless such writing or public
statement indicates that such position is based on such Lender’s good faith determination that a condition precedent (specifically
identified and including a particular Default or Event of Default, if any) to funding an Advance under this Agreement cannot be
satisfied) or generally under other agreements in which it commits to extend credit; (c) has failed, within two Business Days after
request by the Agent, acting in good faith, to provide a certification in writing from an authorized officer of such Lender that
it will comply with its obligations (and is financially able to meet such obligations) to fund prospective Advances and, if applicable,
participations in then outstanding Letters of Credit under this Agreement, provided that such Lender shall cease to be a Defaulting
Lender pursuant to this clause (c) upon the Agent’s receipt of such certification in form and substance satisfactory to the
Agent; or (d) has become the subject of an Insolvency Event.

 

    	6

    	 

    

 

“Deferred
Interest” shall have the meaning set forth in Section 3.1.

 

“Designated
Lender” shall have the meaning set forth in Section 16.2(d).

 

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

 

“Environmental
Complaint” shall have the meaning set forth in Section 9.1(a).

 

“Environmental
Laws” shall mean all federal, state and local environmental, land use, zoning, health, chemical use, safety and sanitation
laws, statutes, ordinances and codes as well as common laws, relating to the protection of the environment, human health and/or
governing the use, storage, treatment, generation, transportation, processing, handling, production or disposal of Hazardous Materials
and the rules, regulations, policies, guidelines, interpretations, decisions, orders and directives of federal, state, international
and local governmental agencies and authorities with respect thereto.

 

“Equity Interests”
shall mean, with respect to any Person, any and all shares, rights to purchase, options, warrants, general, limited or limited
liability partnership interests, member interests, participation or other equivalents of or interest in (regardless of how designated)
equity of such Person, whether voting or nonvoting, including common stock, preferred stock, convertible securities or any other
“equity security” (as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the SEC
under the Exchange Act), including in each case all of the following rights relating to such Equity Interests, whether arising
under the Organizational Documents of the Person issuing such Equity Interests (the “issuer”) or under the Applicable
Laws of such issuer’s jurisdiction of organization relating to the formation, existence and governance of corporations, limited
liability companies or partnerships or business trusts or other legal entities, as the case may be: (i) all economic rights (including
all rights to receive dividends and distributions) relating to such Equity Interests; (ii) all voting rights and rights to consent
to any particular action(s) by the applicable issuer; (iii) all management rights with respect to such issuer; (iv) in the case
of any Equity Interests consisting of a general partner interest in a partnership, all powers and rights as a general partner with
respect to the management, operations and control of the business and affairs of the applicable issuer; (v) in the case of any
Equity Interests consisting of the membership/limited liability company interests of a managing member in a limited liability company,
all powers and rights as a managing member with respect to the management, operations and control of the business and affairs of
the applicable issuer; (vi) all rights to designate or appoint or vote for or remove any officers, directors, manager(s), general
partner(s) or managing member(s) of such issuer and/or any members of any board of members/managers/partners/directors that may
at any time have any rights to manage and direct the business and affairs of the applicable issuer under its Organizational Documents
as in effect from time to time or under Applicable Law; (vii) all rights to amend the Organizational Documents of such issuer,
(viii) in the case of any Equity Interests in a partnership or limited liability company, the status of the holder of such Equity
Interests as a “partner”, general or limited, or “member” (as applicable) under the applicable Organizational
Documents and/or Applicable Law; and (ix) all certificates evidencing such Equity Interests.

 

    	7

    	 

    

 

“ERISA”
shall mean the Employee Retirement Income Security Act of 1974, as the same may be amended or supplemented from time to time and
the rules and regulations promulgated thereunder.

 

“Event of
Default” shall have the meaning set forth in Article X.

 

“Exchange Act” shall
mean the Securities Exchange Act of 1934, as amended.

 

“Excluded
Taxes” shall mean, with respect to the Agent, any Lender, Participant, Borrower or any other recipient of any payment
to be made by or on account of any Obligations, (a) taxes imposed on or measured by its overall net income (however denominated),
and franchise taxes imposed on it (in lieu of net income taxes), by the jurisdiction (or any political subdivision thereof) under
the laws of which such recipient is organized or in which its principal office is located or, in the case of any Lender, Participant
or Borrower, in which its applicable lending office is located, (b) any branch profits taxes imposed by the United States
of America or any similar tax imposed by any other jurisdiction in which any Borrower is located, (c) in the case of a Foreign
Lender, any withholding tax that is imposed on amounts payable to such Foreign Lender at the time such Foreign Lender becomes a
party hereto (or designates a new lending office) or is attributable to such Foreign Lender’s failure or inability (other
than as a result of a change in law) to comply with Section 3.4(e), except to the extent that such Foreign Lender or Participant
(or its assignor or seller of a participation, if any) was entitled, at the time of designation of a new lending office (or assignment
or sale of a participation), to receive additional amounts from the Borrowers with respect to such withholding tax pursuant to
Section 3.4(a), or 3.4(d) any Taxes imposed on any “withholding payment” payable to such recipient as a result of the
failure of such recipient to satisfy the requirements set forth in the FATCA after December 31, 2012.

 

“FATCA”
shall mean Sections 1471 through 1474 of the Code, as of the date of this Agreement (or any amended or successor version that is
substantively comparable and not materially more onerous to comply with) and any current or future regulations or official interpretations
thereof.

 

“Flood Laws”
shall mean all Applicable Laws relating to policies and procedures that address requirements placed on federally regulated lenders
under the National Flood Insurance Reform Act of 1994 and other Applicable Laws related thereto.

 

“Foreign Lender”
shall mean any Lender that is organized under the laws of a jurisdiction other than that in which the Borrowers are resident for
tax purposes. For purposes of this definition, the United States of America, each State thereof and the District of Columbia shall
be deemed to constitute a single jurisdiction.

 

    	8

    	 

    

 

“Foreign Subsidiary”
shall mean any Subsidiary of any Person that is not organized or incorporated in the United States, any State or territory thereof
or the District of Columbia.

 

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

 

“Governmental
Acts” shall mean any act or omission, whether rightful or wrongful, of any present or future de jure or de facto Governmental
Body.

 

“Governmental
Body” shall mean any nation or government, any state or other political subdivision thereof or any entity, authority,
agency, division or department exercising the executive, legislative, judicial, taxing, regulatory or administrative powers or
functions of or pertaining to a government (including any supra-national bodies such as the European Union or the European Central
Bank) and any group or body charged with setting financial accounting or regulatory capital rules or standards (including, without
limitation, the Financial Accounting Standards Board, the Bank for International Settlements or the Basel Committee on Banking
Supervision or any successor or similar authority to any of the foregoing).

 

“Hazardous
Discharge” shall have the meaning set forth in Section 9.1(a).

 

“Hazardous
Materials” shall mean, without limitation, any flammable explosives, radon, radioactive materials, asbestos, urea formaldehyde
foam insulation, polychlorinated biphenyls, petroleum and petroleum products, methane, hazardous materials, Hazardous Wastes, hazardous
or Toxic Substances or related materials as defined in or subject to regulation under Environmental Laws.

 

“Hazardous
Wastes” shall mean all waste materials subject to regulation under CERCLA, RCRA or applicable state law, and any other
applicable Federal and state laws now in force or hereafter enacted relating to hazardous waste disposal.

 

“Holdings”
shall have the meaning set forth in the preamble to this Agreement.

 

“Incremental
Lender” shall have the meaning set forth in Section 2.10(a).

 

“Incremental
Advance Amendment” shall have the meaning set forth in Section 2.10(b).

 

“Incremental
Advance Commitments” shall have the meaning set forth in Section 2.10(a).

 

“Incremental
Advance Effective Date” shall have the meaning set forth in Section 2.10(a).

 

    	9

    	 

    

 

“Indebtedness”
shall mean, as to any Person at any time, any and all indebtedness, obligations or liabilities (whether matured or unmatured, liquidated
or unliquidated, direct or indirect, absolute or contingent, or joint or several) of such Person for or in respect of: (a) borrowed
money; (b) amounts received under or liabilities in respect of any note purchase or acceptance credit facility, and all
obligations of such Person evidenced by bonds, debentures, notes or other similar instruments; (c) all Capitalized Lease Obligations;
(d) reimbursement obligations (contingent or otherwise) under any letter of credit agreement, banker’s acceptance agreement
or similar arrangement; (e) obligations under any interest rate management device, foreign currency exchange agreement, currency
swap agreement, commodity price protection agreement or other interest or currency exchange rate or commodity price hedging arrangement;
(f) any other advances of credit made to or on behalf of such Person or other transaction (including forward sale or purchase
agreements, capitalized leases and conditional sales agreements) having the commercial effect of a borrowing of money entered into
by such Person to finance its operations or capital requirements including to finance the purchase price of property or services
and all obligations of such Person to pay the deferred purchase price of property or services; (g) all items which, in accordance
with GAAP, would be included in determining total liabilities as shown on the balance sheet of such Person as of the date on which
Indebtedness is to be determined (but not including trade payables and accrued expenses incurred in the Ordinary Course of Business
which are not represented by a promissory note or other evidence of indebtedness and which are not past due and not classified
as short term liabilities in accordance with GAAP); (h) all Equity Interests of such Person subject to repurchase or redemption
rights or obligations (excluding repurchases or redemptions at the sole option of such Person); (i) all indebtedness, obligations
or liabilities secured by a Lien on any asset of such Person, whether or not such indebtedness, obligations or liabilities are
otherwise an obligation of such Person; (j) all obligations of such Person for “earnouts”, purchase price adjustments,
profit sharing arrangements, deferred purchase money amounts and similar payment obligations or continuing obligations of any nature
of such Person arising out of purchase and sale contracts; (k) off-balance sheet liabilities and/or pension plan liabilities of
such Person; (l) obligations arising under bonus, deferred compensation, incentive compensation or similar arrangements; and (m) any
guaranty of any indebtedness, obligations or liabilities of a type described in the foregoing clauses (a) through (l).

 

“Indemnified
Taxes” shall mean Taxes other than Excluded Taxes.

 

“Insolvency
Event” shall mean, with respect to any Person, including without limitation any Lender, such Person or such Person’s
direct or indirect parent company (a) becomes the subject of a bankruptcy or insolvency proceeding (including any proceeding under
Title 11 of the United States Code), or regulatory restrictions, (b) has had a receiver, conservator, trustee, administrator, custodian,
assignee for the benefit of creditors or similar Person charged with the reorganization or liquidation of its business appointed
for it or has called a meeting of its creditors, (c) admits in writing its inability, or be generally unable, to pay its debts
as they become due or cease operations of its present business, (d) with respect to a Lender, such Lender is unable to perform
hereunder due to the application of Applicable Law, or (e) in the good faith determination of the Agent, has taken any action in
furtherance of, or indicating its consent to, approval of, or acquiescence in, any such proceeding or appointment of a type described
in clause (a) or (b), provided that an Insolvency Event shall not result solely by virtue of any ownership interest, or the acquisition
of any ownership interest, in such Person or such Person’s direct or indirect parent company by a Governmental Body or instrumentality
thereof if, and only if, such ownership interest does not result in or provide such Person with immunity from the jurisdiction
of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Person
(or such Governmental Body or instrumentality) to reject, repudiate, disavow or disaffirm any contracts or agreements made by such
Person.

 

    	10

    	 

    

 

“Intellectual
Property” shall mean all present and future: trade secrets, know-how and other proprietary information; Trademarks, internet
domain names, service marks, trade dress, trade names, business names, designs, logos, slogans (and all translations, adaptations,
derivations and combinations of the foregoing) indicia and other source and/or business identifiers, and the goodwill of the business
relating thereto and all registrations or applications for registrations which have heretofore been or may hereafter be issued
thereon throughout the world; Copyrights (including Copyrights for computer programs) and all tangible and intangible property
embodying the Copyrights, unpatented inventions (whether or not patentable); Patents; industrial design applications and registered
industrial designs; license agreements related to any of the foregoing and income therefrom; books, records, writings, computer
tapes or disks, flow diagrams, specification sheets, computer software, source codes, object codes, executable code, data, databases
and other physical manifestations, embodiments or incorporations of any of the foregoing; the right to sue for all past, present
and future infringements of any of the foregoing; and all common law and other rights throughout the world in and to all of the
foregoing.

 

“Interest
Rate” shall mean an interest rate per annum equal to fifteen percent (15%).

 

“JBT Agreement”
shall have the meaning set forth in Section 8.1(l).

 

“Landlord
Personal Property Collateral Access Agreement” shall have the meaning set forth in Section 4.2.

 

“Lender”
and “Lenders” shall have the meaning ascribed to such term in the preamble to this Agreement and shall include
each Person which becomes a transferee, successor or assign of any Lender and any Incremental Lender.

 

“Lien”
shall mean any mortgage, deed of trust, pledge, hypothecation, assignment, security interest, lien (whether statutory or otherwise),
Charge, claim or encumbrance, or preference, priority or other security agreement or preferential arrangement held or asserted
in respect of any asset of any kind or nature whatsoever including any conditional sale or other title retention agreement, any
lease having substantially the same economic effect as any of the foregoing, and the filing of, or agreement to give, any financing
statement under the Uniform Commercial Code or comparable law of any jurisdiction.

 

“Marketing
Agreement” shall have the meaning set forth in Section 8.1(m).

 

“Material
Adverse Effect” shall mean a material adverse effect on (a) the condition (financial or otherwise), results of operations,
assets, liabilities, business or properties of any Borrower, (b) any Borrower’s ability to duly and punctually pay or perform
the Obligations in accordance with the terms of this Agreement or any Other Document, (c) the value of the Collateral, or Agent’s
security interests in or Liens on the Collateral or the priority of any such security interest or Lien (d) upon the legality, validity,
binding effect or enforceability against any Borrower of this Agreement or any Other Document to which it is a party or (e) the
practical realization of the benefits of Agent’s and each Lender’s rights and remedies under this Agreement and the
Other Documents.

 

    	11

    	 

    

 

“Material
Contract” shall mean any contract, agreement, instrument, permit, lease or license, written or oral, of any Borrower,
which is material to any Borrower’s business or which the failure to comply with could reasonably be expected to result in
a Material Adverse Effect.

 

“Maximum Advance
Amount” shall mean, on any date of determination, the sum of $4,000,000 and the aggregate amount of Incremental Commitments
on such date, provided that the Maximum Advance Amount shall not exceed $10,000,000.

 

“Multiemployer
Plan” shall mean a “multiemployer plan” as defined in Sections 3(37) or 4001(a)(3) of ERISA to which contributions
are required or, within the preceding five plan years, were required by any Borrower or any member of the Controlled Group.

 

“Multiple
Employer Plan” shall mean a Plan which has two or more contributing sponsors (including any Borrower or any member of
the Controlled Group) at least two of whom are not under common control, as such a plan is described in Section 4064 of ERISA.

 

“Notes”
shall mean, collectively, the promissory notes referred to in Section 2.1.

 

“Obligations”
shall mean and include any and all loans (including without limitation, all Advances), advances, debts, liabilities, obligations,
covenants and duties owing by any Borrower to any Lender or Agent of any kind or nature, present or future (including any interest
or other amounts accruing thereon, any fees accruing under or in connection therewith, any costs and expenses of any Person payable
by any Borrower and any indemnification obligations payable by any Borrower arising or payable after maturity, or after the filing
of any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding relating to any Borrower,
whether or not a claim for post-filing or post-petition interest, fees or other amounts is allowable or allowed in such proceeding),
whether or not evidenced by any note, guaranty or other instrument, arising under this Agreement or the Other Documents, whether
or not for the payment of money, whether direct or indirect (including those acquired by assignment or participation), absolute
or contingent, joint or several, due or to become due, now existing or hereafter arising, contractual or tortious, liquidated or
unliquidated, including, but not limited to, any and all of any Borrower’s Indebtedness and/or liabilities (and any and all
indebtedness, obligations and/or liabilities of any Subsidiary of any Borrower) under this Agreement or the Other Documents and
any amendments, extensions, renewals or increases and all costs and expenses of Agent and any Lender incurred in the documentation,
negotiation, modification, enforcement, collection or otherwise in connection with any of the foregoing, including but not limited
to reasonable attorneys’ fees and expenses and all obligations of any Borrower to Agent or Lenders to perform acts or refrain
from taking any action.

 

“Ordinary
Course of Business” shall mean, with respect to any Borrower, the ordinary course of such Borrower’s business as
conducted on the Closing Date in accordance with Applicable Laws and prudent business practices and reasonable extensions thereof.

 

“Organizational
Documents” shall mean, with respect to any Person, any charter, articles or certificate of incorporation, certificate
of organization, registration or formation, certificate of partnership or limited partnership, bylaws, operating agreement, limited
liability company agreement, or partnership agreement of such Person and any and all other applicable documents relating to such
Person’s formation, organization or entity governance matters (including any shareholders’ or equity holders’
agreement or voting trust agreement) and specifically includes, without limitation, any certificates of designation for preferred
stock or other forms of preferred equity.

 

    	12

    	 

    

 

“Other Documents”
shall mean the Notes, the Warrant, [the Consent, Waiver and Agreement of Existing Creditors,] the Landlord Personal Property Collateral
Access Agreements, and any and all other agreements, instruments and documents, including intercreditor agreements, guaranties,
pledges, powers of attorney, consents, interest or currency swap agreements or other similar agreements and all other writings
heretofore, now or hereafter executed by any Borrower and/or delivered to Agent or any Lender in respect of the transactions contemplated
by this Agreement, in each case together with all extensions, renewals, amendments, supplements, modifications, substitutions and
replacements thereto and thereof.

 

“Other Taxes”
shall mean all present or future stamp or documentary taxes or any other excise or property taxes, charges or similar levies arising
from any payment made hereunder or under any Other Document or from the execution, delivery or enforcement of, or otherwise with
respect to, this Agreement or any Other Document.

 

“Patents”
shall mean, with respect to any Person, all of such Person’s now existing or hereafter acquired right, title and interest
in and to: (i) all patents, patent applications, inventions, invention disclosures and improvements, and all applications, registrations
and recordings relating to the foregoing as may at any time be filed in the United States Patent and Trademark Office or in any
similar office or agency of the United States, any State thereof, any political subdivision thereof or in any other country, and
all research and development relating to the foregoing; and (ii) the reissues, divisions, continuations, renewals, extensions and
continuations-in-part of any of the foregoing.

 

“Payment Office”
shall mean, with respect to Agent or any Lender, such office or bank account of Agent or such Lender, as applicable, designated
from time to time by written notice to Borrowing Agent to be the office or account to which amounts payable to Agent or such Lender,
as applicable, are to be made.

 

“PBGC”
shall mean the Pension Benefit Guaranty Corporation established pursuant to Subtitle A of Title IV of ERISA or any successor.

 

“Pension Benefit
Plan” shall mean at any time any “employee pension benefit plan” as defined in Section 3(2) of ERISA (including
a Multiple Employer Plan, but not a Multiemployer Plan) which is covered by Title IV of ERISA or is subject to the minimum funding
standards under Sections 412, 430 or 436 of the Code and either (i) is maintained or to which contributions are required by Borrower
or any member of the Controlled Group or (ii) has at any time within the preceding five years been maintained or to which contributions
have been required by Borrower or any entity which was at such time a member of the Controlled Group.

 

    	13

    	 

    

 

“Permitted
Encumbrances” shall mean: (a) Liens in favor of Agent for the benefit of Agent and Lenders; (b) Liens for Taxes,
assessments or other governmental charges not delinquent or being Properly Contested; (c) deposits or pledges to secure obligations
under worker’s compensation, social security or similar laws, or under unemployment insurance; (d) deposits or pledges to
secure bids, tenders, contracts (other than contracts for the payment of money), leases, statutory obligations, surety and appeal
bonds and other obligations of like nature arising in the Ordinary Course of Business; (e) Liens arising by virtue of the rendition,
entry or issuance against any Borrower or any Subsidiary, or any property of any Borrower or any Subsidiary, of any judgment, writ,
order, or decree to the extent the rendition, entry, issuance or continued existence of such judgment, writ, order or decree (or
any event or circumstance relating thereto) has not resulted in the occurrence of an Event of Default under Section 10.6; (f) mechanics’,
workers’, materialmen’s or other like Liens arising in the Ordinary Course of Business with respect to obligations
which are not due or which are being Properly Contested; (g) Liens placed upon fixed assets hereafter acquired to secure a portion
of the purchase price thereof, provided that (I) any such lien shall not encumber any other property of any Borrower and (II) the
aggregate amount of Indebtedness secured by such Liens incurred as a result of such purchases during any fiscal year shall not
exceed the amount permitted in Section 7.5; (h) other Liens incidental to the conduct of any Borrower’s business or
the ownership of its property and assets which were not incurred in connection with the borrowing of money or the obtaining of
advances or credit, and which do not in the aggregate materially detract from Agent’s or Lenders’ rights in and to
the Collateral or the value of any Borrower’s property or assets and which do not materially impair the use thereof in the
operation of any Borrower’s business; and (i) Liens disclosed on Schedule 1.2(a); provided that such Liens
shall secure only those obligations which they secure on the Closing Date (and extensions, renewals and refinancing of such obligations
permitted by Section 7.7) and shall not subsequently apply to any other property or assets of any Borrower other than the property
and assets to which they apply as of the Closing Date.

 

“Permitted
Indebtedness” shall mean: (a) the Obligations; (b) Indebtedness incurred for Capital Expenditures permitted in Section
7.5; (c) any guarantees of Indebtedness permitted under Section 7.7; (d) any Indebtedness listed on Schedule 5.8(b)(ii) and any
refinancing of such Indebtedness (which is not materially adverse to the Lenders) that does not increase the principal amount,
or the interest rate or fees thereon, or extend the Liens securing such Indebtedness (if any) to any other assets of any Borrower;
(e) Indebtedness consisting of Permitted Loans; (f) unsecured indebtedness that is subject to a subordination agreement in form
and substance reasonably satisfactory to the Agent, (g) Indebtedness owed to any Person providing workers’ compensation,
health, disability or other employee benefits or property, casualty or liability insurance, pursuant to reimbursement or indemnification
obligations to such Person, in each case incurred in the Ordinary Course of Business, (h) Indebtedness of any Borrower in respect
of performance bonds, bid bonds, appeal bonds, surety bonds, letters of credit and similar obligations, in each case provided in
the Ordinary Course of Business, (i) Indebtedness (other than Indebtedness described in clause (b) above) of any Borrower incurred
to finance the acquisition, construction or improvement of any fixed or capital assets (whether or not constituting purchase money
Indebtedness), including any Indebtedness assumed in connection with the acquisition of any such assets or secured by a Lien on
any such assets prior to the acquisition thereof, and extensions, renewals and refinancings of any such Indebtedness (which are
not materially adverse to the Lenders) that does not increase the principal amount, or the interest rate or fees thereon, or extend
the Liens securing such Indebtedness (if any) to any other assets of any Borrower; provided that such Indebtedness is incurred
prior to or within ninety (90) days after such acquisition or the completion of such construction or improvement, and (j) interest
rate hedges that are entered into by Borrowers to hedge their risks with respect to outstanding Indebtedness of Borrowers permitted
under clauses (a) through (i) and not for speculative or investment purposes.

 

    	14

    	 

    

 

“Permitted
Investments” shall mean investments in: (a) obligations issued or guaranteed by the United States of America or any agency
thereof; (b) commercial paper with maturities of not more than 180 days and a published rating of not less than A-1 or P-1 (or
the equivalent rating); (c) certificates of time deposit and bankers’ acceptances having maturities of not more than 180
days and repurchase agreements backed by United States government securities of a commercial bank if (i) such bank has a combined
capital and surplus of at least $500,000,000, or (ii) its debt obligations, or those of a holding company of which it is a Subsidiary,
are rated not less than A (or the equivalent rating) by a nationally recognized investment rating agency; (d) U.S. money market
funds that invest solely in obligations issued or guaranteed by the United States of America or an agency thereof; and (e) Permitted
Loans.

 

“Permitted
Loans” shall mean the extension of trade credit by a Borrower to its Customers in the Ordinary Course of Business.

 

“Person”
shall mean any individual, sole proprietorship, partnership, corporation, business trust, joint stock company, trust, unincorporated
organization, association, limited liability company, limited liability partnership, institution, public benefit corporation, joint
venture, entity or Governmental Body (whether federal, state, county, city, municipal or otherwise, including any instrumentality,
division, agency, body or department thereof).

 

“Plan”
shall mean any employee benefit plan within the meaning of Section 3(3) of ERISA (including a Pension Benefit Plan and a Multiemployer
Plan, as defined herein) maintained by any Borrower or any member of the Controlled Group or to which any Borrower or any member
of the Controlled Group is required to contribute.

 

“Properly
Contested” shall mean, in the case of any Indebtedness, Lien or Taxes, as applicable, of any Person that are not paid
as and when due or payable by reason of such Person’s bona fide dispute concerning its liability to pay the same or concerning
the amount thereof: (a) such Indebtedness, Lien or Taxes, as applicable, are being properly contested in good faith by appropriate
proceedings promptly instituted and diligently conducted; (b) such Person has established appropriate reserves therefor as shall
be required in conformity with GAAP; (c) the non-payment of such Indebtedness or Taxes will not either have a Material Adverse
Effect or result in the forfeiture of any assets of such Person; (d) no Lien is imposed upon any of such Person’s assets
with respect to such Indebtedness or Taxes unless such Lien (x) does not attach to any Collateral, (y) is at all times junior and
subordinate in priority to the Liens in favor of the Agent (except only with respect to property taxes that have priority as a
matter of applicable state law) and (z) enforcement of such Lien is stayed during the period prior to the final resolution or disposition
of such dispute; and (e) if such Indebtedness or Lien or Taxes, as applicable, results from, or is determined by the entry, rendition
or issuance against a Person or any of its assets of a judgment, writ, order or decree, enforcement of such judgment, writ, order
or decree is stayed pending a timely appeal or other judicial review.

 

“Purchasing
Lender” shall have the meaning set forth in Section 16.3.

 

    	15

    	 

    

 

“RCRA”
shall mean the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., as same may be amended from time to
time.

 

“Real Property”
shall mean all of the owned and leased premises identified on Schedule 4.4(b) hereto or in and to any other premises or real
property that are hereafter owned or leased by any Borrower.

 

“Register”
shall have the meaning set forth in Section 16.3(d).

 

“Registered
Intellectual Property” means Intellectual Property federally registered with the United States Patent and Trademark Office,
the United States Copyright Office or similar office or agency within the United States.

 

“Releases”
shall have the meaning set forth in Section 5.7(c).

 

“Replacement
Notice” shall have the meaning set forth in Section 3.5.

 

“Reportable
Compliance Event” shall mean that any Covered Entity becomes a Sanctioned Person, or is indicted, arraigned, investigated
or custodially detained, or receives an inquiry from regulatory or law enforcement officials, in connection with any Anti-Terrorism
Law or any predicate crime to any Anti-Terrorism Law, or self-discovers facts or circumstances implicating any aspect of its operations
with the actual or possible violation of any Anti-Terrorism Law.

 

“Required
Lenders” shall mean Lenders (not including any Defaulting Lender) holding more than fifty percent (50%) of either (a)
if there are no outstanding Advances, the aggregate of the Commitment Amounts of all Lenders (excluding any Defaulting Lender)
or (b)(i) after the termination of all commitments of the Lenders hereunder or (ii) if there are outstanding Advances and the Utilization
Percentage of any Lender is not equal to such Lender’s Commitment Percentage, the outstanding aggregate principal amount
of Advances.

 

“Sanctioned Country”
shall mean a country subject to a sanctions program maintained by any Compliance Authority.

 

“Sanctioned
Person” shall mean any individual person, group, regime, entity or thing listed or otherwise recognized as a specially
designated, prohibited, sanctioned or debarred person or entity, or subject to any limitations or prohibitions (including but not
limited to the blocking of property or rejection of transactions), under any order or directive of any Compliance Authority or
otherwise subject to, or specially designated under, any sanctions program maintained by any Compliance Authority.

 

“Schedule of Base Operating Expenses”
shall mean the schedule prepared by Borrowing Agent for the period commencing on June 1, 2013 and ending on September 30, 2014,
and setting forth on a monthly basis for such period all base general, administrative and operating expenses of Borrowers on a
consolidated basis, as the same may be amended from time to time in accordance with Section 9.7.

 

“SEC”
shall mean the Securities and Exchange Commission or any successor thereto.

 

    	16

    	 

    

 

“Secured Parties”
shall mean, collectively, Agent and Lenders, and the respective successors and assigns of each of them.

 

“Subsidiary”
shall mean of any Person a corporation or other entity of whose Equity Interests having ordinary voting power (other than Equity
Interests having such power only by reason of the happening of a contingency) to elect a majority of the directors of such corporation,
or other Persons performing similar functions for such entity, are owned, directly or indirectly, by such Person.

 

“Taxes”
shall mean all present or future taxes, levies, imposts, duties, deductions, withholdings, assessments, fees or other charges imposed
by any Governmental Body, including any interest, additions to tax or penalties applicable thereto.

 

“Term”
shall have the meaning set forth in Section 13.1.

 

“Termination
Event” shall mean: (a) a reportable event with respect to any Plan; (b) the withdrawal of any Borrower or any member
of the Controlled Group from a Plan during a plan year in which such entity was a “substantial employer” as defined
in Section 4001(a)(2) of ERISA or a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA;
(c) the providing of notice of intent to terminate a Plan in a distress termination described in Section 4041(c) of ERISA; (d)
the commencement of proceedings by the PBGC to terminate a Plan; (e) any event or condition (a) which might constitute grounds
under Section 4042 of ERISA for the termination of, or the appointment of a trustee to administer, any Plan, or (b) that may result
in termination of a Multiemployer Plan pursuant to Section 4041A of ERISA; (f) the partial or complete withdrawal within the meaning
of Section 4203 or 4205 of ERISA, of any Borrower or any member of the Controlled Group from a Multiemployer Plan; (g) notice that
a Multiemployer Plan is subject to Section 4245 of ERISA; or (h) the imposition of any liability under Title IV of ERISA, other
than for PBGC premiums due but not diligent, upon any Borrower or any member of the Controlled Group.

 

“Toxic Substance”
shall mean and include any material present on the Real Property (including the Leasehold Interests) which has been shown to have
significant adverse effect on human health or which is subject to regulation under the Toxic Substances Control Act (TSCA), 15
U.S.C. §§ 2601 et seq., applicable state law, or any other applicable Federal or state laws now in force or hereafter
enacted relating to toxic substances. “Toxic Substance” includes but is not limited to asbestos, polychlorinated biphenyls
(PCBs) and lead-based paints.

 

“Trademarks”
shall mean, with respect to any Person, all of such Person’s now existing or hereafter acquired right, title, and interest
in and to: (i) all trademarks, trade names, corporate names, company names, business names, fictitious business names, trade styles,
service marks, logos, designs, other business identifiers, prints and labels on which any of the foregoing have appeared or appear,
all applications, registrations and recordings relating to the foregoing as may at any time be filed in the United States Patent
and Trademark Office or in any similar office or agency of the United States, any State thereof, any political subdivision thereof
or in any other country; and (ii) all renewals thereof.

 

    	17

    	 

    

 

“Transactions”
shall mean the consummation of the transactions contemplated under this Agreement.

 

“Transferee”
shall have the meaning set forth in Section 16.3(c).

 

“Uniform Commercial
Code” shall have the meaning set forth in Section 1.3.

 

“Utilization
Percentage” shall mean, as to any Lender at any time of determination, the result, expressed as a percentage, of the
outstanding principal amount of Advances made by such Lender at such time divided by the aggregate outstanding principal amount
of Advances made by all Lenders at such time.

 

“Warrant”
shall mean a warrant in the form of Exhibit 1.2(b) made by Holdings to each Lender entitling such Lender to purchase 20,000 shares
of Holdings’ common stock for each $100,000 of Advances made by such Lender at an exercise price of $5.00 per share (subject
to adjustment as to the exercise price and number of shares), provided that if an event set forth in section 2 of the Warrant occurs
prior to the issuance of any Warrant, the number of shares issuable and the exercise price of any such subsequently issued Warrant
shall be adjusted in the manner set forth in Section 2 of the Warrant, to the same extent such an adjustment is made to Warrants
issued prior to such event.

 

1.3.          Uniform
Commercial Code Terms. All terms used herein and defined in the Uniform Commercial
Code as adopted in the State of New York from time to time (the “Uniform Commercial Code”) shall have the meaning given
therein unless otherwise defined herein. Without limiting the foregoing, the terms “accounts”, “chattel paper”
(and “electronic chattel paper” and “tangible chattel paper”), “commercial tort claims”, “deposit
accounts”, “documents”, “equipment”, “financial asset”, “fixtures”, “general
intangibles”, “goods”, “instruments”, “inventory”, “investment property”,
“letter-of-credit rights”, “payment intangibles”, “proceeds”, “promissory note”
“securities”, “software” and “supporting obligations” as and when used in the description of
Collateral shall have the meanings given to such terms in Articles 8 or 9 of the Uniform Commercial Code. To the extent the definition
of any category or type of collateral is expanded by any amendment, modification or revision to the Uniform Commercial Code, such
expanded definition will apply automatically as of the date of such amendment, modification or revision.

 

    	18

    	 

    

 

 

1.4.          Certain
Matters of Construction. The terms “herein”, “hereof” and
“hereunder” and other words of similar import refer to this Agreement as a whole and not to any particular section,
paragraph or subdivision. All references herein to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles
and Sections of, and Exhibits and Schedules to, this Agreement. Any pronoun used shall be deemed to cover all genders. Wherever
appropriate in the context, terms used herein in the singular also include the plural and vice versa. All references to statutes
and related regulations shall include any amendments of same and any successor statutes and regulations. Unless otherwise provided,
all references to any instruments or agreements to which Agent is a party, including references to any of the Other Documents,
shall include any and all modifications, supplements or amendments thereto, any and all restatements or replacements thereof and
any and all extensions or renewals thereof. Except as otherwise expressly provided for herein, all references herein to the time
of day shall mean the time in New York, New York. Whenever the words “including” or “include” shall be
used, such words shall be understood to mean “including, without limitation” or “include, without limitation”.
A Default or Event of Default shall be deemed to exist at all times during the period commencing on the date that such Default
or Event of Default occurs to the date on which such Default or Event of Default is waived in writing pursuant to this Agreement
or, in the case of a Default, is cured within any period of cure expressly provided for in this Agreement; and an Event of Default
shall “continue” or be “continuing” until such Event of Default has been waived in writing by the Required
Lenders. Any Lien referred to in this Agreement or any of the Other Documents as having been created in favor of Agent, any agreement
entered into by Agent pursuant to this Agreement or any of the Other Documents, any payment made by or to or funds received by
Agent pursuant to or as contemplated by this Agreement or any of the Other Documents, or any act taken or omitted to be taken by
Agent, shall, unless otherwise expressly provided herein, be created, entered into, made or received, or taken or omitted, for
the benefit or account of Agent and Lenders. Wherever the phrase “to the best of Borrowers’ knowledge” or words
of similar import relating to the knowledge or the awareness of any Borrower are used in this Agreement or Other Documents, such
phrase shall mean and refer to the knowledge that a senior officer would have obtained if he/she had engaged in a good faith and
diligent performance of his/her duties, including the making of such reasonably specific inquiries as may be necessary of the employees
or agents of such Borrower and a good faith attempt to ascertain the existence or accuracy of the matter to which such phrase relates.
All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of
such covenants, the fact that it would be permitted by an exception to, or otherwise within the limitations of, another covenant
shall not avoid the occurrence of a default if such action is taken or condition exists. In addition, all representations and warranties
hereunder shall be given independent effect so that if a particular representation or warranty proves to be incorrect or is breached,
the fact that another representation or warranty concerning the same or similar subject matter is correct or is not breached will
not affect the incorrectness of a breach of a representation or warranty hereunder.

 

II.           ADVANCES,
PAYMENTS.

 

2.1.          Advances.
Subject to the terms and conditions set forth in this Agreement, each Lender, severally and not jointly, will make Advances to
Borrowing Agent for the benefit of Borrowers in aggregate amounts outstanding at any time equal to such Lender’s Commitment
Percentage of the Maximum Advance Amount; provided that (a) the initial Advances, in an aggregate principal amount equal to $2,000,000,
shall be made as follows on the Closing Date: (i) each Lender that is an Affiliate of Holdings or, solely for the purposes of this
Section 2.1, designated as an Affiliate of Holdings, to the reasonable satisfaction of Agent, shall fund its pro rata share of
$1,000,000 based on the percentage determined by dividing the Commitment Amount of such Lender by the Commitment Amounts of all
Lenders that are Affiliates of Holdings or designated as Affiliates of Holdings and (ii) each Lender that is not an Affiliate of
Holdings or designated as an Affiliate of Holdings shall fund its pro rata share of $1,000,000 based on the percentage determined
by dividing the Commitment Amount of such Lender by the Commitment Amounts of all Lenders that are not Affiliates of Holdings or
designated as Affiliates of Holdings, and (b) until the Utilization Percentage of each Lender is equal to such Lender’s Commitment
Percentage, each Advance made after the Closing Date shall be made only by Lenders that have Utilization Percentages that are less
than their respective Commitment Percentages. No Lender shall be required to make any Advance if after giving effect thereto the
aggregate outstanding principal amount of Advances made by such Lender would exceed such Lender’s Commitment Amount. The
Advances shall be evidenced by one or more secured promissory notes (collectively, the “Notes”) substantially in the
form attached hereto as Exhibit 2.1. Notwithstanding anything to the contrary contain in the foregoing or otherwise in this Agreement,
the outstanding aggregate principal amount of the Advances at any one time outstanding shall not exceed the Maximum Advance Amount.

 

    	19

    	 

    

 

2.2.          Procedures
for Requesting Advances. Borrowing Agent on behalf of the Borrowers may notify Agent
prior to 10:00 a.m. on a Business Day of such Borrowing Agent’s request to incur, on that day, an Advance hereunder. Each
request for an Advance shall be in writing and shall specify the amount of the requested Advance and the use of the proceeds thereof,
such use to be as permitted by Section 2.8. The amount of each Advance to be borrowed shall be in a minimum amount of $200,000
and in integral multiples of $10,000 thereafter.

 

2.3.          Disbursement
of Advance Proceeds. The proceeds of each Advance requested by Borrowing Agent shall,
to the extent Lenders make such Advances in accordance with Section 2.2 or 2.4(b), be made available to the Borrowers on the day
so requested by way of credit to the Borrowing Agent’s Account, in immediately available federal funds or other immediately
available funds. During the Term, Borrowers may use the Advances by borrowing, prepaying and reborrowing, all in accordance with
the terms and conditions hereof.

 

2.4.          Making
of Advances.

 

(a)          Each
borrowing of Advances shall be advanced in accordance with Section 2.1 (subject to any contrary terms of Section 2.9 and Section
2.10(c)).

 

(b)          Promptly
after receipt by Agent of a request or a deemed request for an Advance pursuant to Section 2.2, Agent shall notify the Lenders
of its receipt of such request specifying the information provided by Borrowing Agent and the apportionment among Lenders of the
requested Advance as determined by Agent in accordance with the terms hereof. Each Lender shall remit the principal amount of each
Advance to the Borrowing Agent’s Account in U.S. Dollars and immediately available funds prior to the close of business,
on the applicable borrowing date.

 

(c)          Unless
Agent shall have been notified by telephone, confirmed in writing, by any Lender or by Borrowing Agent that such Lender will not
or did not make the amount which would constitute its applicable share of the requested Advance available to the Borrowing Agent’s
Account, Agent may (but shall not be obligated to) assume that such Lender has made such amount available to Borrowing Agent on
such date in accordance with Section 2.4(b). Agent will promptly notify Borrowing Agent of its receipt of any such notice from
a Lender.

 

    	20

    	 

    

 

(d)          If
any Lender or Participant (a “Benefited Lender”) shall at any time receive any payment of all or part of its Advances,
or interest thereon, or receive any Collateral in respect thereof (whether voluntarily or involuntarily or by set-off) in a greater
proportion than any such payment to and Collateral received by any other Lender, if any, in respect of such other Lender’s
Advances, or interest thereon, and such greater proportionate payment or receipt of Collateral is not expressly permitted hereunder,
such Benefited Lender shall purchase for cash from the other Lenders a participation in such portion of each such other Lender’s
Advances, or shall provide such other Lender with the benefits of any such Collateral, or the proceeds thereof, as shall be necessary
to cause such Benefited Lender to share the excess payment or benefits of such Collateral or proceeds ratably with each of the
other Lenders; provided, however, that if all or any portion of such excess payment or benefits is thereafter recovered from such
Benefited Lender, such purchase shall be rescinded, and the purchase price and benefits returned, to the extent of such recovery,
but without interest. Each Borrower consents to the foregoing and agrees, to the extent it may effectively do so under Applicable
Law, that each Lender so purchasing a portion of another Lender’s Advances may exercise all rights of payment (including
rights of set-off) with respect to such portion as fully as if such Lender were the direct holder of such portion, and the obligations
owing to each such purchasing Lender in respect of such participation and such purchased portion of any other Lender’s Advances
shall be part of the Obligations secured by the Collateral, and the obligations owing to each such purchasing Lender in respect
of such participation and such purchased portion of any other Lender’s Advances shall be part of the Obligations secured
by the Collateral.

 

2.5.          Manner
and Repayment of Advances.

 

(a)          The
Advances shall be due and payable in full on the last day of the Term subject to earlier prepayment as herein provided. Notwithstanding
the foregoing, all Advances shall be subject to earlier repayment upon (x) acceleration upon the occurrence of an Event of Default
under this Agreement or (y) termination of this Agreement. Each payment (including each prepayment) by any Borrower on account
of the principal of and interest on the Advances shall be applied pro rata according to the applicable Utilization Percentages
(if the Utilization Percentage of any Lender is not equal to such Lender’s Commitment Percentage) or the applicable Commitment
Percentages, as applicable, of the Lenders, to the outstanding Advances made to such Borrower (subject to any contrary provisions
of Section 2.9).

 

(b)          All
payments of principal, interest and other amounts payable hereunder, or under any of the Other Documents shall be made by Borrowers
or Borrowing Agent to Agent or each Lender at Agent’s or such Lender’s, as applicable, Payment Office not later than
1:00 P.M. on the due date therefor in Dollars in federal funds or other immediately funds. Each such payment shall be made without
deduction, setoff or counterclaim.

 

2.6.          Repayment
of Excess Advances. If at any time the aggregate balance of outstanding Advances exceeds
the Maximum Advance Amount, such excess Advances shall be immediately due and payable without the necessity of any demand and shall
be paid to each Lender based on such Lender’s Utilization Percentage (if such Lender’s Utilization Percentage is not
equal to its Commitment Percentage) or such Lender’s Commitment Percentage, as applicable, of such excess, at such Lender’s
Payment Office, whether or not a Default or Event of Default has occurred.

 

2.7.          Statement
of Account. Each month, Agent shall send to Borrowing Agent a statement showing the
accounting for the Advances made and payments made or credited in respect thereof. The monthly statements shall be deemed correct
and binding upon Borrowers in the absence of manifest error and shall constitute an account stated between Lenders and Borrowers
unless Agent receives a written statement of Borrowers’ specific exceptions thereto within thirty (30) days after such statement
is received by Borrowing Agent. The records of Agent with respect to the Advances shall be conclusive evidence absent manifest
error of the amounts of Advances and other charges thereto and of payments applicable thereto.

 

    	21

    	 

    

 

2.8.          Use
of Proceeds. Borrowers shall apply the proceeds of (a) the initial Advance to pay
fees and expenses of the Borrowers and the Agent relating to the negotiation, execution and delivery of this Agreement and the
Other Documents and (b) each Advance to provide for their working capital needs and operational expenses, provided that such working
capital needs and operational expenses are in the Budget; provided further that with respect to each Advance, not less than the
proceeds thereof times the percentage obtained by dividing $4,600,000 by the Maximum Advance Amount at the time of such Advance
shall be applied in accordance with the Schedule of Base Operating Expenses.

 

2.9.          Defaulting
Lender.

 

(a)          Notwithstanding
anything to the contrary contained herein, in the event any Lender is a Defaulting Lender, all rights and obligations hereunder
of such Defaulting Lender and of the other parties hereto shall be modified to the extent of the express provisions of this Section
2.9 so long as such Lender is a Defaulting Lender.

 

(b)          Except
as otherwise expressly provided for in Section 2.1 or this Section 2.9, Advances shall be made pro rata from Lenders holding Commitments
which are not Defaulting Lenders based on their respective Commitment Percentages, and no Commitment Percentage of any Lender or
any pro rata share of any Advances required to be advanced by any Lender shall be increased as a result of any Lender being a Defaulting
Lender; provided, that, Agent shall not be obligated to transfer to a Defaulting Lender any payments received by Agent for the
Defaulting Lender’s benefit, nor shall a Defaulting Lender be entitled to the sharing of any payments hereunder (including
any principal, interest or fees). Amounts payable to a Defaulting Lender shall instead be paid to or retained by Agent. Agent may
hold and, in its discretion, re-lend to a Borrower the amount of such payments received or retained by it for the account of such
Defaulting Lender.

 

(c)          A
Defaulting Lender shall not be entitled to give instructions to Agent or to approve, disapprove, consent to or vote on any matters
relating to this Agreement and the Other Documents, and all amendments, waivers and other modifications of this Agreement and the
Other Documents may be made without regard to a Defaulting Lender and, for purposes of the definition of “Required Lenders”,
a Defaulting Lender shall not be deemed to be a Lender, to have any outstanding Advances or a Commitment Percentage or a Utilization
Percentage; provided, that this Section 2.9(c) shall not apply to the vote of a Defaulting Lender in the case of an amendment,
waiver or other modification described in clause (i), (ii) or (iii) of Section 16.2(b).

 

(d)          Other
than as expressly set forth in this Section 2.9, the rights and obligations of a Defaulting Lender (including the obligation to
indemnify Agent) and the other parties hereto shall remain unchanged. Nothing in this Section 2.9 shall be deemed to release any
Defaulting Lender from its obligations under this Agreement and the Other Documents, shall alter such obligations, shall operate
as a waiver of any default by such Defaulting Lender hereunder, or shall prejudice any rights which any Borrower, Agent or any
Lender may have against any Defaulting Lender as a result of any default by such Defaulting Lender hereunder.

 

    	22

    	 

    

 

(e)          In
the event that the Agent and the Borrowing Agent agree in writing that a Defaulting Lender has adequately remedied all matters
that caused such Lender to be a Defaulting Lender, then the Agent will so notify the parties hereto.

 

2.10.       Incremental
Advance Commitments.

 

(a)          Borrowing
Agent may from time to time by written notice to Agent elect to request an increase to the Maximum Advance Loan Amount (such increase,
the “Incremental Advance Commitments”), by an amount which would not cause the Maximum Advance Loan Amount after giving
effect to such Incremental Advance Commitments to exceed $10,000,000. Each such notice shall specify (i) the date (each, an “Incremental
Advance Effective Date”) on which Borrowing Agent proposes such Incremental Advance Commitments shall be effective, which
shall be a date not less than five (5) Business Days after the date on which such notice is delivered to Agent and (ii) the identity
of each Lender or other Person (each, an “Incremental Lender”) to whom Borrowing Agent proposes any portion of such
Incremental Advance Commitments be allocated and the amounts of such allocations.

 

(b)          Incremental
Advances Commitments shall become Commitments under this Agreement pursuant to an amendment to this Agreement (each, an “Incremental
Advance Amendment”) executed by Borrowers, each existing Lender agreeing to provide such Incremental Advance Commitment,
each Incremental Lender, if any, and Agent, and such amendments to the Other Documents as Borrowing Agent and Agent shall reasonably
deem appropriate to effect such purpose. For the avoidance of doubt, no amendment executed for the purpose of making Incremental
Advance Commitments under this Agreement shall require, as a condition to its effectiveness, the signature of any Lender that is
not obligated to make an Incremental Advance Commitment under such amendment. The effectiveness of such Incremental Advance Amendment
shall be subject to (i) the delivery by Borrowers of satisfactory board resolutions and other closing documents deemed reasonably
necessary by Agent in connection with such increase and (ii) the satisfaction on the date thereof of each of the conditions set
forth in Section 8.2.

 

(c)          
On any Incremental Advance Effective Date on which any Incremental Advance Commitments are effective, each Incremental Lender shall
become a Lender hereunder with respect to the Incremental Advance Commitment.

 

(d)          The
terms and provisions of the Incremental Advance Commitments shall be identical to the Commitments in effect on the date of the
Incremental Advance Amendment, except to the extent Borrowers, Lenders and Incremental Advance Lenders otherwise collectively agree.
The Incremental Advance Commitments established pursuant to this Section 2.10 shall constitute Commitments under, and shall be
entitled to all the benefits afforded by, this Agreement and the Other Documents. Borrowers and Borrowing Agent shall take any
actions reasonably required by Agent or Incremental Lenders to ensure and demonstrate that the Lien and security interests granted
by this Agreement continue to be perfected under the Uniform Commercial Code or otherwise after giving effect to the establishment
of any such Incremental Advance Commitments.

 

    	23

    	 

    

 

III.          INTEREST
AND FEES.

 

3.1.          Interest.
Interest on the outstanding principal amount of the Advances shall accrue, in arrears, at the Interest Rate and shall be payable
on the earliest to occur of (i) the last day of the Term, (ii) the date on which Borrowers pay the Obligations in full and (iii)
the date on which all Obligations become due and payable in accordance with Section 11.1 (the “Deferred Interest”).
Interest shall not accrue on the Deferred Interest unless the Deferred Interest is not paid on the date that the Deferred Interest
shall be payable. Except as expressly provided otherwise in this Agreement, any Obligations other than the Advances that are not
paid when due shall accrue interest at the Interest Rate, subject to the provision of the final sentence of this Section 3.1 regarding
the Default Rate. Upon and after the occurrence of an Event of Default, and during the continuation thereof, at the option of Agent
or at the direction of Required Lenders (or, in the case of any Event of Default under Section 10.7, immediately and automatically
upon the occurrence of any such Event of Default without the requirement of any affirmative action by any party), the Obligations
shall bear interest at the Interest Rate plus two (2.00%) percent per annum (the “Default Rate”). 

 

3.2.          Computation
of Interest and Fees. Interest hereunder shall be computed on the basis of a year
of 360 days and for the actual number of days elapsed. If any payment to be made hereunder becomes due and payable on a day other
than a Business Day, the due date thereof shall be extended to the next succeeding Business Day and interest thereon shall be payable
at the Interest Rate during such extension.

 

3.3.          Maximum
Charges. In no event whatsoever shall interest and other charges charged hereunder
exceed the highest rate permissible under Applicable Law. In the event interest and other charges as computed hereunder would otherwise
exceed the highest rate permitted under Applicable Law: (i) the interest rates hereunder will be reduced to the maximum rate permitted
under Applicable Law; (ii) such excess amount shall be first applied to any unpaid principal balance owed by Borrowers; and (iii)
if the then remaining excess amount is greater than the previously unpaid principal balance, Lenders shall promptly refund such
excess amount to Borrowers and the provisions hereof shall be deemed amended to provide for such permissible rate.

 

3.4.          Taxes.

 

(a)          Any
and all payments by or on account of any Obligations hereunder or under any Other Document shall be made free and clear of and
without reduction or withholding for any Indemnified Taxes or Other Taxes; provided that if the Borrowers shall be required
by Applicable Law to deduct any Indemnified Taxes (including any Other Taxes) from such payments, then (i) the sum payable
shall be increased as necessary so that after making all required deductions (including deductions applicable to additional sums
payable under this Section) the Agent, Lender or Participant, as the case may be, receives an amount equal to the sum it would
have received had no such deductions been made, (ii) the Borrowers shall make such deductions and (iii) the Borrowers
shall timely pay the full amount deducted to the relevant Governmental Body in accordance with Applicable Law.

 

    	24

    	 

    

 

(b)          Without
limiting the provisions of Section 3.4(a), the Borrowers shall timely pay any Other Taxes to the relevant Governmental Body in
accordance with Applicable Law.

 

(c)          Each
Borrower shall indemnify Agent, each Lender and any Participant, within ten (10) days after demand therefor, for the full amount
of any Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted on or attributable to amounts
payable under this Section) paid by Agent, such Lender or such Participant, as the case may be, and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes or Other Taxes were correctly
or legally imposed or asserted by the relevant Governmental Body. A certificate as to the amount of such payment or liability delivered
to the Borrowers by any Lender or Participant (with a copy to Agent), or by Agent on its own behalf or on behalf of a Lender or
Participant shall be conclusive absent manifest error.

 

(d)          As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by any Borrower to a Governmental Body, the Borrowers
shall deliver to Agent the original or a certified copy of a receipt issued by such Governmental Body evidencing such payment,
a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to Agent.

 

(e)          Any
Foreign Lender that is entitled to an exemption from or reduction of withholding tax under the law of the jurisdiction in which
any Borrower is resident for tax purposes, or under any treaty to which such jurisdiction is a party, with respect to payments
hereunder or under any Other Document shall deliver to the Borrowers (with a copy to Agent), at the time or times prescribed by
Applicable Law or reasonably requested by the Borrowers or Agent, such properly completed and executed documentation prescribed
by Applicable Law as will permit such payments to be made without withholding or at a reduced rate of withholding. Notwithstanding
the submission of such documentation claiming a reduced rate of or exemption from U.S. withholding tax, Agent shall be entitled
to withhold United States federal income taxes at the full 30% withholding rate if in its reasonable judgment it is required to
do so under the due diligence requirements imposed upon a withholding agent under § 1.1441-7(b) of the United States Income
Tax Regulations or other Applicable Law. Further, Agent is indemnified under § 1.1461-1(e) of the United States Income Tax
Regulations against any claims and demands of any Lender or assignee or participant of a Lender for the amount of any tax it deducts
and withholds in accordance with regulations under § 1441 of the Code. In addition, any Lender, if requested by the Borrowers
or Agent, shall deliver such other documentation prescribed by Applicable Law or reasonably requested by the Borrowers or Agent
as will enable the Borrowers or Agent to determine whether or not such Lender is subject to backup withholding or information reporting
requirements. Without limiting the generality of the foregoing, in the event that any Borrower is resident for tax purposes in
the United States of America, any Foreign Lender (or other Lender) shall deliver to the Borrowers and Agent (in such number of
copies as shall be requested by the recipient) on or prior to the date on which such Foreign Lender (or other Lender) becomes a
Lender under this Agreement (and from time to time thereafter upon the request of the Borrowers or the Agent, but only if such
Foreign Lender (or other Lender) is legally entitled to do so), whichever of the following is applicable:

 

    	25

    	 

    

 

(i)          two
(2) duly completed valid originals of IRS Form W-8BEN claiming eligibility for benefits of an income tax treaty to which the United
States of America is a party,

 

(ii)         two
(2) duly completed valid originals of IRS Form W-8ECI,

 

(iii)        in
the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under section 881(c) of the Code, (x)
a certificate to the effect that such Foreign Lender is not (A) a “bank” within the meaning of section 881(c)(3)(A)
of the Code, (B) a “10 percent shareholder” of the Borrowers within the meaning of section 881(c)(3)(B) of the Code,
or (C) a “controlled foreign corporation” described in section 881(c)(3)(C) of the Code and (y) two duly completed
valid originals of IRS Form W-8BEN,

 

(iv)        any
other form prescribed by Applicable Law as a basis for claiming exemption from or a reduction in United States Federal withholding
tax duly completed together with such supplementary documentation as may be prescribed by Applicable Law to permit the Borrowers
to determine the withholding or deduction required to be made, or

 

(v)         To
the extent that any Lender is not a Foreign Lender, such Lender shall submit to Agent two (2) originals of an IRS Form W-9 or any
other form prescribed by Applicable Law demonstrating that such Lender is not a Foreign Lender.

 

(f)          If
a payment made to a Lender, Participant or Agent under any Document would be subject to U.S. Federal withholding Tax imposed by
FATCA if such Person fails to comply with the applicable reporting requirements of FATCA (including those contained in Section
1471(b) or 1472(b) of the Code, as applicable), such Lender, Participant or Agent shall deliver to the Agent (in the case of a
Lender or Participant) and the Borrowers (A) a certification signed by the chief financial officer, principal accounting officer,
treasurer or controller of such Person, and (B) other documentation reasonably requested by the Agent or any Borrower sufficient
for Agent and the Borrowers to comply with their obligations under FATCA and to determine that such Lender, Participant or Agent
has complied with such applicable reporting requirements.

 

(g)          If
the Agent, a Lender or a Participant determines, in its sole discretion, that it has received a refund of any Indemnified Taxes
or Other Taxes as to which it has been indemnified by the Borrowers or with respect to which the Borrowers have paid additional
amounts pursuant to this Section, it shall pay to the Borrowers an amount equal to such refund (but only to the extent of indemnity
payments made, or additional amounts paid, by the Borrowers under this Section with respect to the Indemnified Taxes or Other Taxes
giving rise to such refund); net of all out-of-pocket expenses of the Agent, such Lender or Participant, as the case may be, and
without interest (other than any interest paid by the relevant Governmental Body with respect to such refund), provided that the
Borrowers, upon the request of the Agent, such Lender or Participant agrees to repay the amount paid over to the Borrowers (plus
any penalties, interest or other charges imposed by the relevant Governmental Body) to the Agent, such Lender or Participant in
the event the Agent, such Lender or Participant is required to repay such refund to such Governmental Body. This Section shall
not be construed to require the Agent, any Lender or Participant to make available its tax returns (or any other information relating
to its taxes that it deems confidential) to the Borrowers or any other Person.

 

    	26

    	 

    

 

3.5.          Replacement
of Lenders. If any Lender (an “Affected Lender”) (a) is a Defaulting Lender
or (b) denies any consent requested by the Agent pursuant to Section 16.2(b), Borrowers may, within ninety (90) days of receipt
of such demand, or such Lender becoming a Defaulting Lender or denial of a request by the Agent pursuant to Section 16.2(b), as
the case may be, by notice (a “Replacement Notice”) in writing to the Agent and such Affected Lender (i) request the
Affected Lender to cooperate with Borrowers in obtaining a replacement Lender satisfactory to the Agent and Borrowers (the “Replacement
Lender”); (ii) request the non-Affected Lenders to acquire and assume all of the Affected Lender’s Advances and its
Commitment Percentage, as provided herein, but none of such Lenders shall be under any obligation to do so; or (iii) propose a
Replacement Lender subject to approval by the Agent in its good faith business judgment. If any satisfactory Replacement Lender
shall be obtained, and/or if any one or more of the non-Affected Lenders shall agree to acquire and assume all of the Affected
Lender’s Advances and its Commitment Percentage, then such Affected Lender shall assign, in accordance with Section 16.3,
all of its Advances and its Commitment Percentage, and other rights and obligations under this Loan Agreement and the Other Documents
to such Replacement Lender or non-Affected Lenders, as the case may be, in exchange for payment of the principal amount so assigned
and all interest and fees accrued on the amount so assigned, plus all other Obligations then due and payable to the Affected
Lender. 

 

IV.          COLLATERAL:
GENERAL TERMS

 

4.1.          Security
Interest in the Collateral. To secure the prompt payment and performance to Agent
and each Lender (and each other holder of any Obligations) of the Obligations, each Borrower hereby assigns, pledges and grants
to Agent for its benefit and for the ratable benefit of each Lender and each other Secured Party, a continuing security interest
in and to and Lien on all of its Collateral, whether now owned or existing or hereafter created, acquired or arising and wheresoever
located. Each Borrower shall mark its books and records as may be necessary or appropriate to evidence, protect and perfect Agent’s
security interest and shall cause its financial statements to reflect such security interest. Each Borrower shall provide Agent
with written notice of all commercial tort claims promptly upon the occurrence of any events giving rise to any such claim(s) (regardless
of whether legal proceedings have yet been commenced), such notice to contain a brief description of the claim(s), the events out
of which such claim(s) arose and the parties against which such claims may be asserted and, if applicable in any case where legal
proceedings regarding such claim(s) have been commenced, the case title together with the applicable court and docket number. Upon
delivery of each such notice, such Borrower shall be deemed to thereby grant to Agent a security interest and lien in and to such
commercial tort claims described therein and all proceeds thereof. Each Borrower shall provide Agent with written notice promptly
upon becoming the beneficiary under any letter of credit or otherwise obtaining any right, title or interest in any letter of credit
rights, and at Agent’s request shall take such actions as Agent may reasonably request for the perfection of Agent’s
security interest therein. 

 

    	27

    	 

    

 

4.2.          Perfection
of Security Interest. Each Borrower shall take all action that may be necessary or
desirable, or that Agent may request, so as at all times to maintain the validity, perfection, enforceability and priority of Agent’s
security interest in and Lien on the Collateral or to enable Agent to protect, exercise or enforce its rights hereunder and in
the Collateral, including, but not limited to, (i) immediately discharging all Liens other than Permitted Encumbrances, (ii) delivering
to Agent, endorsed or accompanied by such instruments of assignment as Agent may specify, and stamping or marking, in such manner
as Agent may specify, any and all chattel paper, instruments, letters of credits and advices thereof and documents evidencing or
forming a part of the Collateral, and (iii) executing and delivering financing statements, instruments of pledge, mortgages, notices
and assignments, in each case in form and substance satisfactory to Agent, relating to the creation, validity, perfection, maintenance
or continuation of Agent’s security interest and Lien under the Uniform Commercial Code or other Applicable Law. By way of
example and without limiting the generality of the foregoing sentence, (i) in the case of the Equity Interests of Borrowers owned
beneficially and of record by Holding being pledged hereunder, in addition to the filing of financing statements under the Uniform
Commercial Code, Holdings shall deliver to Agent the certificates representing such Equity Interests and duly endorsed or accompanied
by duly executed instruments of assignment or transfer in blank, (ii) in the case of Registered Intellectual Property, in addition
to the filing of financing statements under the Uniform Commercial Code, Agent may cause the recordation of a grant of a security
interest with the United States Patent and Trademark Office or with the United States Copyright Office, as applicable, (iii) in
the case of any deposit account, Borrowers shall deliver to Agent an agreement executed by Borrowers and the financial institution
at which such deposit account is maintained providing for control by Agent thereof and (iv) in the case of leased Real Property
in which any portion of the Collateral is located, Borrowers shall use commercially reasonably efforts to cause the related landlord
to execute and delivery to Agent a landlord personal property collateral access agreement, in substantially the form attached hereto
as Exhibit 4.2 (each a “Landlord Personal Property Collateral Access Agreement”), which shall also be executed by the
applicable Borrower. By its signature hereto, each Borrower hereby authorizes Agent to file against such Borrower, one or more
financing, continuation or amendment statements pursuant to the Uniform Commercial Code in form and substance satisfactory to Agent
(which statements may have a description of collateral which is broader than that set forth herein, including without limitation
a description of Collateral as “all assets” and/or “all personal property” of any Borrower). All charges,
expenses and fees Agent may incur in doing any of the foregoing, and any local taxes relating thereto, shall be added to the Obligations,
or, at Agent’s option, shall be paid by Borrowers to Agent for its benefit and for the ratable benefit of Lenders immediately
upon demand.

 

4.3.          Preservation
of Collateral. Following the occurrence of a Default or Event of Default and the demand
by Agent for payment of all Obligations due and owing, in addition to the rights and remedies set forth in Section 11.1, Agent:
(a) may at any time take such steps as Agent deems necessary to protect Agent’s interest in and to preserve the Collateral;
(b) may employ and maintain at any of any Borrower’s premises a custodian who shall have full authority to do all acts necessary
to protect Agent’s interests in the Collateral; (c) may lease warehouse facilities to which Agent may move all or part of
the Collateral; (d) may use any Borrower’s owned or leased lifts, hoists, trucks and other facilities or equipment for handling
or removing the Collateral; and (e) shall have, and is hereby granted, a right of ingress and egress to the places where the Collateral
is located, and may proceed over and through any of Borrowers’ owned or leased property. Each Borrower shall cooperate fully
with all of Agent’s efforts to preserve the Collateral and will take such actions to preserve the Collateral as Agent may
direct. All of Agent’s expenses of preserving the Collateral, including any expenses relating to the bonding of a custodian,
shall be added to the Obligations.

 

    	28

    	 

    

 

4.4.          Ownership
and Location of Collateral.

 

(a)          With
respect to the Collateral, at the time the Collateral becomes subject to Agent’s security interest: (i) each Borrower shall
be the sole owner of and fully authorized and able to sell, transfer, pledge and/or grant a first priority security interest in
each and every item of its respective Collateral to Agent; and, except for Permitted Encumbrances the Collateral shall be free
and clear of all Liens whatsoever; (ii) each document and agreement executed by each Borrower or delivered to Agent or any Lender
in connection with this Agreement shall be true and correct in all respects; and (iii) all signatures and endorsements of each
Borrower that appear on such documents and agreements shall be genuine and each Borrower shall have full capacity to execute same.

 

(b)          Schedule
4.4(b) hereto sets forth a correct and complete list as of the Closing Date of each place of business of each Borrower, the chief
executive office of each Borrower and a correct and complete list as of the Closing Date of the location, by state and street address,
of all Real Property owned or leased by each Borrower, together with the names and addresses of any landlords and the full addresses
at which any Collateral is located.

 

4.5.          Defense
of Agent’s and Lenders’ Interests. Until (a) payment and performance in
full of all of the Obligations and (b) termination of this Agreement, Agent’s interests in the Collateral shall continue
in full force and effect. During such period no Borrower shall, without Agent’s prior written consent, pledge, sell (except
for sales or other dispositions otherwise permitted in Section 7.1(b)), assign, transfer, create or suffer to exist a Lien upon
or encumber or allow or suffer to be encumbered in any way except for Permitted Encumbrances, any part of the Collateral. Each
Borrower shall defend Agent’s interests in the Collateral against any and all Persons whatsoever. At any time following demand
by Agent for payment of all Obligations, Agent shall have the right to take possession of the indicia of the Collateral and the
Collateral in whatever physical form contained. If Agent exercises this right to take possession of the Collateral, Borrowers shall,
upon demand, assemble it in the best manner possible and make it available to Agent at a place reasonably convenient to Agent.
In addition, with respect to all Collateral, Agent and Lenders shall be entitled to all of the rights and remedies set forth herein
and further provided by the Uniform Commercial Code or other Applicable Law. Each Borrower shall, and Agent may, at its option,
instruct all suppliers, carriers, forwarders, warehousers or others receiving or holding cash, checks, inventory, documents or
instruments in which Agent holds a security interest to deliver same to Agent and/or subject to Agent’s order and if they
shall come into any Borrower’s possession, they, and each of them, shall be held by such Borrower in trust as Agent’s
trustee, and such Borrower will immediately deliver them to Agent in their original form together with any necessary endorsement.

 

    	29

    	 

    

 

4.6.          Inspection
of Premises. At all reasonable times and from time to time as often as Agent shall
elect in its sole discretion, Agent and each Lender shall have full access to and the right to audit, check, inspect and make abstracts
and copies from each Borrower’s books, records, audits, correspondence and all other papers relating to the Collateral and
the operation of each Borrower’s business. Agent, any Lender and their agents may enter upon any premises of any Borrower
at any time during business hours and at any other reasonable time, and from time to time as often as Agent shall elect in its
sole discretion, for the purpose of inspecting the Collateral and any and all records pertaining thereto and the operation of such
Borrower’s business.

 

4.7.          Receivables.

 

(a)          At
any time following the occurrence of an Event of Default, Agent shall have the right to send notice of the assignment of, and Agent’s
security interest in and Lien on, the receivables to any and all Customers or any third party holding or otherwise concerned with
any of the Collateral. At any time after the occurrence and during the continuance of an Event of Default, Agent shall have the
sole right to collect the receivables, take possession of the Collateral, or both. Agent’s actual collection expenses, including,
but not limited to, stationery and postage, telephone and telegraph, secretarial and clerical expenses and the salaries of any
collection personnel used for collection, may be added to the Obligations.

 

(b)          Each
Borrower hereby constitutes Agent or Agent’s designee as such Borrower’s attorney with power at any time following
the occurrence of an Event of Default: (A) to demand payment of the receivables; (B) to enforce payment of the receivables by legal
proceedings or otherwise; (C) to exercise all of such Borrower’s rights and remedies with respect to the collection of the
receivables and any other Collateral; (D) to sue upon or otherwise collect, extend the time of payment of, settle, adjust, compromise,
extend or renew the receivables; (E) to settle, adjust or compromise any legal proceedings brought to collect receivables; (F)
to prepare, file and sign such Borrower’s name on a proof of claim in bankruptcy or similar document against any Customer;
(G) to prepare, file and sign such Borrower’s name on any notice of Lien, assignment or satisfaction of Lien or similar document
in connection with the receivables; (H) to accept the return of goods represented by any of the receivables; and (I) to do all
other acts and things necessary to carry out this Agreement. All acts of said attorney or designee are hereby ratified and approved,
and said attorney or designee shall not be liable for any acts of omission or commission nor for any error of judgment or mistake
of fact or of law, unless done maliciously or with gross negligence (as determined by a court of competent jurisdiction in a final
non-appealable judgment); this power being coupled with an interest is irrevocable while any of the Obligations remain unpaid.

 

(c)          Neither
Agent nor any Lender shall, under any circumstances or in any event whatsoever, have any liability for any error or omission or
delay of any kind occurring in the settlement, collection or payment of any of the receivables or any instrument received in payment
thereof, or for any damage resulting therefrom.

 

(d)          No
Borrower will, without Agent’s prior written consent, compromise or adjust any material amount of the receivables (or extend
the time for payment thereof) or accept any material returns of merchandise or grant any additional discounts, allowances or credits
thereon except for those compromises, adjustments, returns, discounts, credits and allowances as have been heretofore customary
in the Ordinary Course of Business of such Borrower.

 

    	30

    	 

    

 

4.8.          Maintenance
of Equipment. The equipment shall be maintained in good operating condition and repair
(reasonable wear and tear excepted) and all necessary replacements of and repairs thereto shall be made so that the value and operating
efficiency of the equipment shall be maintained and preserved. No Borrower shall use or operate the equipment in violation of any
law, statute, ordinance, code, rule or regulation. 

 

4.9.          Exculpation
of Liability. Nothing herein contained shall be construed to constitute Agent or any
Lender as any Borrower’s agent for any purpose whatsoever, nor shall Agent or any Lender be responsible or liable for any
shortage, discrepancy, damage, loss or destruction of any part of the Collateral wherever the same may be located and regardless
of the cause thereof. Neither Agent nor any Lender, whether by anything herein or in any assignment or otherwise, assume any of
any Borrower’s obligations under any contract or agreement assigned to Agent or such Lender, and neither Agent nor any Lender
shall be responsible in any way for the performance by any Borrower of any of the terms and conditions thereof. 

 

4.10.         Financing
Statements. Except as respects the financing statements filed by Agent, financing
statements described on Schedule 1.2(a), and financing statements filed in connection with Permitted Encumbrances, no financing
statement covering any of the Collateral or any proceeds thereof is or will be on file in any public office.

 

V.          REPRESENTATIONS
AND WARRANTIES.

 

Each Borrower, jointly and severally, represents
and warrants as follows:

 

5.1.          Authority.
Each Borrower has full power, authority and legal right to enter into this Agreement and the Other Documents to which it is a party
and to perform all its respective Obligations hereunder and thereunder. This Agreement and the Other Documents to which it is a
party have been duly executed and delivered by each Borrower, and this Agreement and the Other Documents to which it is a party
constitute the legal, valid and binding obligation of such Borrower enforceable in accordance with their terms, except as such
enforceability may be limited by any applicable bankruptcy, insolvency, moratorium or similar laws affecting creditors’ rights
generally. The execution, delivery and performance of this Agreement and of the Other Documents to which it is a party (a) are
within such Borrower’s corporate or company powers, as applicable, have been duly authorized by all necessary corporate or
company action, as applicable, are not in contravention of Applicable Laws or the terms of such Borrower’s Organizational
Documents or to the conduct of such Borrower’s business or of any Material Contract or undertaking to which such Borrower
is a party or by which such Borrower is bound, (b) will not conflict with or violate any Applicable Laws, or any judgment, order
or decree of any Governmental Body, (c) will not require the Consent of any Governmental Body, any party to a Material Contract
or any other Person, except those Consents set forth on Schedule 5.1, all of which will have been duly obtained, made or compiled
prior to the Closing Date and which are in full force and effect and (d) will not conflict with, nor result in any breach in any
of the provisions of or constitute a default under or result in the creation of any Lien except Permitted Encumbrances upon any
asset of such Borrower under the provisions of any agreement, instrument, or other document to which such Borrower is a party or
by which it or its property is subject or by which it or its property may be bound.

 

    	31

    	 

    

 

5.2.          Formation
and Qualification.

 

(a)          Each
Borrower is duly incorporated or formed, as applicable, and in good standing under the laws of the state listed on Schedule 5.2(a)
and is qualified to do business and is in good standing in the states listed on Schedule 5.2(a) which constitute all states in
which qualification and good standing are necessary for such Borrower to conduct its business and own its property and where the
failure to so qualify could reasonably be expected to have a Material Adverse Effect on such Borrower. Each Borrower has delivered
to Agent true and complete copies of its Organizational Documents and will promptly notify Agent of any amendment or changes thereto.

 

(b)          The
only Subsidiaries of each Borrower are listed on Schedule 5.2(b).

 

5.3.          Survival
of Representations and Warranties. All representations and warranties of such Borrower
contained in this Agreement and the Other Documents to which it is a party shall be true at the time of such Borrower’s execution
of this Agreement and the Other Documents to which it is a party, and shall survive the execution, delivery and acceptance thereof
by the parties thereto and the closing of the transactions described therein or related thereto. 

 

5.4.          Tax
Returns. Each Borrower’s federal tax identification number is set forth on Schedule
5.4. Each Borrower has filed all federal, state and local tax returns and other reports each is required by Applicable Laws to
file and has paid all Taxes and other governmental charges that are due and payable. The provision for taxes on the books of each
Borrower is adequate for all years not closed by applicable statutes, and for its current fiscal year, and no Borrower has any
knowledge of any deficiency or additional assessment in connection therewith not provided for on its books.

 

5.5.          Financial
Statements.

 

(a)          The
Schedule of Base Operating Expenses was prepared by the Chief Financial Officer of Holdings is based on underlying assumptions
which provide a reasonable basis for the projections contained therein and reflect Holdings’ judgment based on present circumstances
of the most likely set of conditions and course of action for the projected period.

 

(b)          The
unaudited consolidated balance sheet of Holdings and the other Borrowers as at March 31, 2013, and the related consolidated statements
of operations, shareholders’ deficit and cash flows for the fiscal quarter ended on that date, copies of which have been
delivered to Agent, (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except
as otherwise expressly noted therein, and (ii) fairly present the financial condition of Holdings and the other Borrowers as of
the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii),
to the absence of footnotes and to normal year-end audit adjustments. Such unaudited consolidated balance sheets set forth all
material indebtedness and other liabilities, direct or contingent, of Holdings and the other Borrowers as of the date of such financial
statements, including liabilities for Taxes and Indebtedness. Since September 30, 2012 and except as otherwise described in filings
made with the SEC, there has been no event or circumstance, either individually or in the aggregate, that has had or could reasonably
be expected to have a Material Adverse Effect.

 

    	32

    	 

    

 

5.6.          Entity
Names. No Borrower has been known by any other company or corporate name, as applicable,
in the past five years and does not sell inventory under any other name except as set forth on Schedule 5.6, nor has any Borrower
been the surviving corporation or company, as applicable, of a merger or consolidation or acquired all or substantially all of
the assets of any Person during the preceding five (5) years.

 

5.7.          O.S.H.A.
Environmental Compliance and Flood Insurance.

 

(a)          Each
Borrower is in compliance with, and its facilities, business, assets, property, leaseholds, Real Property and equipment are in
compliance with the Federal Occupational Safety and Health Act, Environmental Laws and there are no outstanding citations, notices
or orders of non-compliance issued to any Borrower or relating to its business, assets, property, leaseholds or equipment under
any such laws, rules or regulations.

 

(b)          Each
Borrower has been issued all required federal, state and local licenses, certificates or permits (collectively, “Approvals”)
relating to all applicable Environmental Laws and all such Approvals are current and in full force and effect.

 

(c)          (i)
To the knowledge of Borrowers, there have been no releases, spills, discharges, leaks or disposal (collectively referred to as
“Releases”) of Hazardous Materials at, upon, under or migrating from or onto (x) any Real Property owned by any Borrower
or (y) any Real Property leased or occupied (but not owned) by any Borrower during the period such Borrower has leased or occupied
such Real Property, except for those Releases which are in full compliance with Environmental Laws; (ii) there are no underground
storage tanks or polychlorinated biphenyls on any Real Property owned, leased or occupied by any Borrower, except for such underground
storage tanks or polychlorinated biphenyls that are present in compliance with Environmental Laws; (iii) the Real Property including
any premises owned, leased or occupied by any Borrower has never been used by any Borrower to dispose of Hazardous Materials, except
as authorized by Environmental Laws; and (iv) no Hazardous Materials are managed by Borrower on any Real Property including any
premises owned, leased or occupied by any Borrower, excepting such quantities as are managed in accordance with all applicable
manufacturer’s instructions and compliance with Environmental Laws and as are necessary for the operation of the commercial
business of any Borrower or of its tenants.

 

(d)          All
Real Property owned by Borrowers is insured pursuant to policies and other bonds which are valid and in full force and effect and
which provide adequate coverage from reputable and financially sound insurers in amounts sufficient to insure the assets and risks
of each such Borrower in accordance with prudent business practice in the industry of such Borrower. Each Borrower has taken all
actions required under the Flood Laws and/or requested by Agent to assist in ensuring that each Lender is in compliance with the
Flood Laws applicable to the Collateral.

 

    	33

    	 

    

 

5.8.          Solvency;
No Litigation, Violation, Indebtedness or Default; ERISA Compliance.

 

(a)          (i)
After giving effect to the Transactions, each Borrower is solvent, able to pay its debts that mature prior to the end of the Term
as they mature, has capital sufficient to carry on its business and all businesses in which it is about to engage, (ii) as of the
Closing Date, the fair present saleable value of its assets, calculated on a going concern basis, is in excess of the amount of
its liabilities required to be paid prior to the end of the Term, and (iii) subsequent to the Closing Date, the fair saleable value
of its assets (calculated on a going concern basis) will be in excess of the amount of its liabilities required to be paid prior
to the end of the Term.

 

(b)          Except
as disclosed in Schedule 5.8(b)(i), no Borrower has any pending or threatened litigation, arbitration, actions or proceedings.
No Borrower has any outstanding Indebtedness other than the Obligations, except for (i) Indebtedness disclosed in Schedule 5.8(b)(ii)
and (ii) Indebtedness otherwise permitted under Section 7.7.

 

(c)          No
Borrower is in violation of any applicable statute, law, rule, regulation or ordinance in any respect which could reasonably be
expected to have a Material Adverse Effect, nor is any Borrower in violation of any order of any court, Governmental Body or arbitration
board or tribunal. Each Plan is in compliance in all material respects with the applicable provisions of ERISA, the Code and other
federal or state laws.

 

(d)          No
Borrower or any member of the Controlled Group maintains or is required to contribute to any Plan other than those listed on Schedule
5.8(d). (i) Each Borrower and each member of the Controlled Group has met all applicable minimum funding requirements under Section
302 of ERISA and Section 412 of the Code in respect of each Plan, and each Plan is in compliance with Sections 412, 430 and 436
of the Code and Sections 206(g), 302 and 303 of ERISA, without regard to waivers and variances; (ii) each Plan which is intended
to be a qualified plan under Section 401(a) of the Code as currently in effect has been determined by the Internal Revenue Service
to be qualified under Section 401(a) of the Code and the trust related thereto is exempt from federal income tax under Section
501(a) of the Code or an application for such a determination is currently being processed by the Internal Revenue Code; (iii)
neither any Borrower nor any member of the Controlled Group has incurred any liability to the PBGC other than for the payment of
premiums, and there are no premium payments which have become due which are unpaid; (iv) no Plan has been terminated by the plan
administrator thereof nor by the PBGC, and there is no occurrence which would cause the PBGC to institute proceedings under Title
IV of ERISA to terminate any Plan; (v) the current value of the assets of each Plan exceeds the present value of the accrued benefits
and other liabilities of such Plan and neither any Borrower nor any member of the Controlled Group knows of any facts or circumstances
which would materially change the value of such assets and accrued benefits and other liabilities; (vi) neither any Borrower nor
any member of the Controlled Group has breached any of the responsibilities, obligations or duties imposed on it by ERISA with
respect to any Plan; (vii) neither any Borrower nor any member of a Controlled Group has incurred any liability for any excise
tax arising under Section 4971, 4972 or 4980B of the Code, and no fact exists which could give rise to any such liability; (viii)
neither any Borrower nor any member of the Controlled Group nor any fiduciary of, nor any trustee to, any Plan, has engaged in
a “prohibited transaction” described in Section 406 of the ERISA or Section 4975 of the Code nor taken any action which
would constitute or result in a Termination Event with respect to any such Plan which is subject to ERISA; (ix) no Termination
Event has occurred or is reasonably expected to occur; (x) there exists no event described in Section 4043 of ERISA, for which
the thirty (30) day notice period has not been waived; (xi) neither any Borrower nor any member of the Controlled Group has engaged
in a transaction that could be subject to Section 4069 or 4212(c) of ERISA; (xii) neither any Borrower nor any member of the Controlled
Group maintains or is required to contribute to any Plan which provides health, accident or life insurance benefits to former employees,
their spouses or dependents, other than in accordance with Section 4980B of the Code; (xiii) neither any Borrower nor any member
of the Controlled Group has withdrawn, completely or partially, within the meaning of Section 4203 or 4205 of ERISA, from any Multiemployer
Plan so as to incur liability under the Multiemployer Pension Plan Amendments Act of 1980 and there exists no fact which would
reasonably be expected to result in any such liability; and (xiv) no Plan fiduciary (as defined in Section 3(21) of ERISA) has
any liability for breach of fiduciary duty or for any failure in connection with the administration or investment of the assets
of a Plan.

 

    	34

    	 

    

 

5.9.          Patents,
Trademarks, Copyrights and Licenses. All Intellectual Property owned or licensed by
any Borrower: (i) is set forth on Schedule 5.9; (ii) is valid and has been duly registered or filed with all appropriate Governmental
Bodies; (iii) constitutes all of the Intellectual Property which is necessary for the operation of its business as presently conducted
or expected to be conducted. There is no objection to or pending or, to the knowledge of any Borrower, threatened challenge to
the validity or ownership or use of, or proceedings by or before any Governmental Body to suspend, revoke, terminate or adversely
modify on the basis of third party infringement or otherwise, any such Intellectual Property and no Borrower is aware of any grounds
for any challenge or proceedings, except as set forth in Schedule 5.9. All Intellectual Property owned or licensed by any Borrower
consists of original material or property developed by such Borrower or was lawfully acquired by such Borrower from the proper
and lawful owner thereof. Each of such items has been maintained so as to preserve the value thereof from the date of creation
or acquisition thereof. 

 

5.10.         Licenses
and Permits. Except as set forth in Schedule 5.10, each Borrower (a) is in compliance
with and (b) has procured and is now in possession of, all material licenses or permits required by any applicable federal, state,
provincial or local law, rule or regulation for the operation of its business in each jurisdiction wherein it is now conducting
or proposes to conduct business and where the failure to procure such licenses or permits could reasonably be expected to have
a Material Adverse Effect.

 

5.11.         Default
of Indebtedness. No Borrower is in default in the payment of the principal of or interest
on any Indebtedness or under any instrument or agreement under or subject to which any Indebtedness has been issued and no event
has occurred under the provisions of any such instrument or agreement which with or without the lapse of time or the giving of
notice, or both, constitutes or would constitute an event of default thereunder.

 

5.12.         No
Default. No Borrower is in default in the payment or performance of any of its contractual
obligations and no Default or Event of Default has occurred.

 

    	35

    	 

    

 

5.13.         No
Burdensome Restrictions. No Borrower is party to any contract or agreement the performance
of which could reasonably be expected to have a Material Adverse Effect. Each Borrower has heretofore delivered to Agent true and
complete copies of all Material Contracts to which it is a party or to which it or any of its properties is subject. No Borrower
has agreed or consented to cause or permit in the future (upon the happening of a contingency or otherwise) any of its property,
whether now owned or hereafter acquired, to be subject to a Lien which is not a Permitted Encumbrance.

 

5.14.         No
Labor Disputes. No Borrower is involved in any labor dispute; there are no strikes
or walkouts or union organization of any Borrower’s employees threatened or in existence and no labor contract is scheduled
to expire during the Term other than as set forth on Schedule 5.14.

 

5.15.         Margin
Regulations. No Borrower is engaged, nor will it engage, principally or as one of
its important activities, in the business of extending credit for the purpose of “purchasing” or “carrying”
any “margin stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors
of the Federal Reserve System as now and from time to time hereafter in effect. No part of the proceeds of any Advance will be
used for “purchasing” or “carrying” “margin stock” as defined in Regulation U of such Board
of Governors.

 

5.16.         Investment
Company Act. No Borrower is an “investment company” registered or required
to be registered under the Investment Company Act of 1940, as amended, nor is it controlled by such a company.

 

5.17.         Disclosure.
No representation or warranty made by any Borrower in this Agreement or in any financial statement, report, certificate or any
other document furnished in connection herewith or therewith contains any untrue statement of a material fact or omits to state
any material fact necessary to make the statements herein or therein not misleading. There is no fact known to any Borrower or
which reasonably should be known to such Borrower which such Borrower has not disclosed to Agent in writing with respect to the
transactions contemplated by this Agreement which could reasonably be expected to have a Material Adverse Effect.

 

5.18.         Business
and Property of Borrowers. Upon and after the Closing Date, Borrowers do not propose
to engage in any business other than the manufacturing of automated robotic parking garages and automated self storage systems
and activities necessary to conduct the foregoing. On the Closing Date, each Borrower will own all the property and possess all
of the rights and Consents necessary for the conduct of the business of such Borrower as presently conducted or expected to be
conducted.

 

    	36

    	 

    

 

5.19.         Equity
Interests. The authorized and outstanding Equity Interests of each Borrower, and each
legal and beneficial holder thereof (other than the legal and beneficial holders of Holdings) as of the Closing Date, are as set
forth on Schedule 5.19(a). All of the Equity Interests of each Borrower have been duly and validly authorized and issued and are
fully paid and non-assessable and, to the extent sold and delivered by a Borrower, have been sold and delivered to the holders
thereof in compliance with, or under valid exemption from, all federal and state laws and the rules and regulations of each Governmental
Body governing the sale and delivery of securities. Except for the rights and obligations set forth on Schedule 5.19(b) (a) there
are no subscriptions, warrants, options, calls, commitments, rights or agreements by which any Borrower or of the shareholders
of any Borrower (other than Holdings) is bound relating to the issuance, transfer, voting or redemption of shares of its Equity
Interests or any pre-emptive rights held by any Person with respect to the Equity Interests of Borrowers (other than Holdings)
and (b) Holdings does not have knowledge of any subscriptions, warrants, options, calls, commitments, rights or agreements by which
any of the shareholders of Holdings is bound relating to the issuance, transfer, voting or redemption of shares of its Equity Interests
or any pre-emptive rights held by any Person with respect to the Equity Interests of Holdings. Except as set forth on Schedule
5.19(c), Borrowers have not issued any securities convertible into or exchangeable for shares of its Equity Interests or any options,
warrants or other rights to acquire such shares or securities convertible into or exchangeable for such shares.

 

5.20.         Commercial
Tort Claims. No Borrower has any commercial tort claims except as set forth on Schedule
5.20. 

 

5.21.         Letter
of Credit Rights. As of the Closing Date, no Borrower has any letter of credit rights.

 

5.22.         Material
Contracts. Schedule 5.22 sets forth all Material Contracts of the Borrowers. All Material
Contracts are in full force and effect and no material defaults currently exist thereunder. 

 

5.23.         
Insurance. Each Borrower has in full force and effect such insurance policies
as are customary in its industry for entities of similar size engaged in similar lines of business and for SEC reporting companies
with financially sound and reputable insurance companies.

 

VI.          AFFIRMATIVE
COVENANTS.

 

Each Borrower shall, until payment in full
of the Obligations and termination of this Agreement:

 

6.1.          Compliance
with Laws. Comply in all respects with all Applicable Laws with respect to the Collateral
or any part thereof or to the operation of such Borrower’s business the non-compliance with which could reasonably be expected
to have a Material Adverse Effect (except to the extent any separate provision of this Agreement shall expressly require compliance
with any particular Applicable Law(s) pursuant to another standard). Each Borrower may, however, contest or dispute any Applicable
Laws in any reasonable manner, provided that any related Lien is inchoate or stayed and sufficient reserves are established to
the reasonable satisfaction of Agent to protect Agent’s Lien on or security interest in the Collateral.

 

6.2.          Conduct
of Business and Maintenance of Existence and Assets. (a) Conduct continuously and
operate actively its business according to good business practices and maintain all of its properties useful or necessary in its
business in good working order and condition (reasonable wear and tear excepted and except as may be disposed of in accordance
with the terms of this Agreement), including all Intellectual Property and take all actions necessary to enforce and protect the
validity of any intellectual property right or other right included in the Collateral; (b) keep in full force and effect its existence
and comply in all respects with Applicable Laws governing the conduct of its business where the failure to do so could reasonably
be expected to have a Material Adverse Effect; (c) make all such reports and pay all such franchise and other taxes and license
fees and do all such other acts and things as may be lawfully required to maintain its rights, licenses, leases, powers and franchises
under the laws of the United States or any political subdivision thereof where the failure to do so could reasonably be expected
to have a Material Adverse Effect; and (d) perform all respects in accordance with its terms each Material Contract where the failure
to do so could reasonably be expected to have a Material Adverse Effect.

 

    	37

    	 

    

 

6.3.          Books
and Records. Keep proper books of record and account in which full, true and correct
entries will be made of all dealings or transactions of or in relation to its business and affairs (including without limitation
accruals for Taxes, assessments, Charges, levies and claims, allowances against doubtful receivables and accruals for depreciation,
obsolescence or amortization of assets), all in accordance with, or as required by, GAAP consistently applied in the opinion of
such independent public accountant as shall then be regularly engaged by Borrowers.

 

6.4.          Payment
of Taxes. Pay, when due, all Taxes, assessments and other Charges lawfully levied
or assessed upon such Borrower or any of the Collateral, including real and personal property taxes, assessments and charges and
all franchise, income, employment, social security benefits, withholding, and sales taxes. If any tax by any Governmental Body
is or may be imposed on or as a result of any transaction between any Borrower and Agent or any Lender which Agent or any Lender
may be required to withhold or pay or if any taxes, assessments, or other Charges remain unpaid after the date fixed for their
payment, or if any claim shall be made which, in Agent’s or any Lender’s opinion, may possibly create a valid Lien
on the Collateral, Agent may without notice to Borrowers pay the taxes, assessments or other Charges and each Borrower hereby indemnifies
and holds Agent and each Lender harmless in respect thereof. Agent will not pay any taxes, assessments or Charges to the extent
that any applicable Borrower has Properly Contested those taxes, assessments or Charges. The amount of any payment by Agent under
this Section 6.4 shall be added to the Obligations and, until Borrowers shall furnish Agent with an indemnity therefor (or supply
Agent with evidence satisfactory to Agent that due provision for the payment thereof has been made), Agent may hold without interest
any balance standing to Borrowers’ credit and Agent shall retain its security interest in and Lien on any and all Collateral
held by Agent.

 

6.5.          Insurance.  

 

(a)          (i)
Keep all its insurable properties and properties in which such Borrower has an interest insured against the hazards of fire, flood,
sprinkler leakage, those hazards covered by extended coverage insurance and such other hazards, and for such amounts, as is customary
in the case of companies engaged in businesses similar to such Borrower’s including business interruption insurance; (ii)
maintain a bond in such amounts as is customary in the case of companies engaged in businesses similar to such Borrower insuring
against larceny, embezzlement or other criminal misappropriation of insured’s officers and employees who may either singly
or jointly with others at any time have access to the assets or funds of such Borrower either directly or through authority to
draw upon such funds or to direct generally the disposition of such assets; (iii) maintain public and product liability insurance
against claims for personal injury, death or property damage suffered by others; (iv) maintain all such worker’s compensation
or similar insurance as may be required under the laws of any state or jurisdiction in which such Borrower is engaged in business;
and (v) furnish Agent with (A) copies of all policies and evidence of the maintenance of such policies by the renewal thereof at
least thirty (30) days before any expiration date, and (B) appropriate loss payable endorsements in form and substance satisfactory
to Agent, naming Agent as an additional insured and mortgagee and/or lender loss payee (as applicable) as its interests may appear
with respect to all insurance coverage referred to in clauses (i), and (iii) above, and providing (I) that all proceeds thereunder
shall be payable to Agent, (II) no such insurance shall be affected by any act or neglect of the insured or owner of the property
described in such policy, and (III) that such policy and loss payable clauses may not be cancelled, amended or terminated unless
at least thirty (30) days prior written notice is given to Agent (or in the case of non-payment, at least ten (10) days prior written
notice). In the event of any loss thereunder, the carriers named therein hereby are directed by Agent and the applicable Borrower
to make payment for such loss to Agent and not to such Borrower and Agent jointly. If any insurance losses are paid by check, draft
or other instrument payable to any Borrower and Agent jointly, Agent may endorse such Borrower’s name thereon and do such
other things as Agent may deem advisable to reduce the same to cash.

 

    	38

    	 

    

 

(b)          Each
Borrower shall take all actions required under the Flood Laws and/or requested by Agent to assist in ensuring that each Lender
is in compliance with the Flood Laws applicable to the Collateral, including, but not limited to, providing Agent with the address
and/or GPS coordinates of each structure on any Real Property that will be subject to a mortgage in favor of Agent, for the benefit
of the Lenders, and, to the extent required, obtaining flood insurance for such property, structures and contents prior to such
property, structures and contents becoming Collateral, and thereafter maintaining such flood insurance in full force and effect
for so long as required by the Flood Laws.

 

(c)          Agent
is hereby authorized to adjust and compromise claims under insurance coverage referred to in clauses (i) and (iii) of Sections
6.5(a) and 6.5(b). All loss recoveries received by Agent under any such insurance may be applied to the Obligations, in such order
as Agent in its sole discretion shall determine. Any surplus shall be paid by Agent to Borrowers or applied as may be otherwise
required by law. Any deficiency thereon shall be paid by Borrowers to Agent, on demand. If any Borrower fails to obtain insurance
as hereinabove provided, or to keep the same in force, Agent, if Agent so elects, may obtain such insurance and pay the premium
therefor on behalf of such Borrower, which payments shall be added to the Obligations.

 

6.6.          Payment
of Indebtedness and Leasehold Obligations. Pay, discharge or otherwise satisfy (i)
at or before maturity (subject, where applicable, to specified grace periods) all its Indebtedness, except when the failure to
do so could not reasonably be expected to have a Material Adverse Effect or when the amount or validity thereof is currently being
Properly Contested, subject at all times to any applicable subordination arrangement in favor of Lenders and (ii) when due its
rental obligations under all leases under which it is a tenant, and shall otherwise comply, in all material respects, with all
other terms of such leases and keep them in full force and effect.

 

    	39

    	 

    

 

6.7.          Environmental
Matters.

 

(a)          Ensure
that the Real Property and all operations and businesses conducted thereon are in compliance and remain in compliance with all
Environmental Laws and it shall manage any and all Hazardous Materials on any Real Property in compliance with Environmental Laws.

 

(b)          Establish
and maintain an environmental management and compliance system to assure and monitor continued compliance with all applicable Environmental
Laws which system shall include periodic environmental compliance audits to be conducted by knowledgeable environmental professionals.
All potential violations and violations of Environmental Laws shall be reviewed with legal counsel to determine any required reporting
to applicable Governmental Bodies and any required corrective actions to address such potential violations or violations.

 

(c)          Respond
promptly to any Hazardous Discharge or Environmental Complaint and take all necessary action in order to safeguard the health of
any Person and to avoid subjecting the Collateral or Real Property to any Lien. If any Borrower shall fail to respond promptly
to any Hazardous Discharge or Environmental Complaint or any Borrower shall fail to comply with any of the requirements of any
Environmental Laws, Agent on behalf of Lenders may, but without the obligation to do so, for the sole purpose of protecting Agent’s
interest in the Collateral: (i) give such notices or (ii) enter onto the Real Property (or authorize third parties to enter onto
the Real Property) and take such actions as Agent (or such third parties as directed by Agent) deem reasonably necessary or advisable,
to remediate, remove, mitigate or otherwise manage with any such Hazardous Discharge or Environmental Complaint. All reasonable
costs and expenses incurred by Agent and Lenders (or such third parties) in the exercise of any such rights, including any sums
paid in connection with any judicial or administrative investigation or proceedings, fines and penalties, together with interest
thereon from the date expended at the Default Rate shall be paid upon demand by Borrowers, and until paid shall be added to and
become a part of the Obligations secured by the Liens created by the terms of this Agreement or any other agreement between Agent,
any Lender and any Borrower.

 

(d)          Promptly
upon the written request of Agent from time to time, Borrowers shall provide Agent, at Borrowers’ expense, with an environmental
site assessment or environmental compliance audit report prepared by an environmental engineering firm acceptable in the reasonable
opinion of Agent, to assess with a reasonable degree of certainty the existence of a Hazardous Discharge and the potential costs
in connection with abatement, remediation and removal of any Hazardous Materials found on, under, at or within the Real Property.
Any report or investigation of such Hazardous Discharge proposed and acceptable to the responsible Governmental Body shall be acceptable
to Agent. If such estimates, individually or in the aggregate, exceed $100,000, Agent shall have the right to require Borrowers
to post a bond, letter of credit or other security reasonably satisfactory to Agent to secure payment of these costs and expenses.

 

6.8.          Standards
of Financial Statements. Cause all financial statements referred to in Sections 9.4,
9.5, 9.6, 9.7 and 9.8 as to which GAAP is applicable to be complete and correct and present fairly the financial condition, assets
and liabilities and results of operations of the Borrowers (subject, in the case of interim financial statements, to normal year-end
audit adjustments) and to be prepared in reasonable detail and in accordance with GAAP applied consistently throughout the periods
reflected therein (except as disclosed therein and agreed to by such reporting accountants or officer, as applicable).

 

    	40

    	 

    

 

6.9.          Execution
of Supplemental Instruments. Execute and deliver to Agent from time to time, upon
demand, such supplemental agreements, statements, assignments and transfers, or instructions or documents relating to the Collateral,
and such other instruments as Agent may request, in order that the full intent of this Agreement may be carried into effect.

 

6.10.         Post
Closing Covenants. 

 

(a)          Use
commercially reasonable efforts to cause to be delivered on or before the date that is ten (10) Business Days after the Closing
Date (or such later date as may be agreed to by Agent), a Landlord Personal Property Collateral Access Agreement duly executed
by the applicable Borrower and the applicable landlord for the leased office space at 324 W 2500 N, Building A, Logan, Utah 84341
and 324 W 2500 N, Building B, Logan, Utah 84341

 

(b)          On
or before the date that is twenty (20) Business Days after the Closing Date (or such later date as may be agreed to by Agent),
deliver to Agent an agreement executed by the applicable Borrower and the financial institution at which each deposit account is
maintained by such Borrower providing for control by Agent thereof.

 

VII.         NEGATIVE
COVENANTS.

 

No Borrower shall,
until satisfaction in full of the Obligations and termination of this Agreement:

 

7.1.          Merger,
Consolidation, Acquisition and Sale of Assets.

 

(a)          Enter
into any merger, consolidation or other reorganization with or into any other Person or acquire all or a substantial portion of
the assets or Equity Interests of any Person or permit any other Person to consolidate with or merge with it, except any Borrower
may merge, consolidate or reorganize with another Borrower or acquire the assets or Equity Interest of another Borrower so long
as such Borrower provides Agent with ten (10) days prior written notice of such merger, consolidation or reorganization and delivers
all of the relevant documents evidencing such merger, consolidation or reorganization.

 

(b)          Sell,
lease, transfer or otherwise dispose of any of its properties or assets, except (i) (a) the sale of inventory in the Ordinary Course
of Business and (b) the disposition or transfer of obsolete and worn-out equipment in the Ordinary Course of Business and only
to the extent that the proceeds of any such disposition are used to acquire replacement equipment and (ii) any other sales or dispositions
expressly permitted by this Agreement.

 

7.2.          Creation
of Liens. Create or suffer to exist any Lien or transfer upon or against any of its
property or assets now owned or hereafter created or acquired, except Permitted Encumbrances.

 

7.3.          Investments.
Purchase or acquire obligations or Equity Interests of, or any other interest in, any Person, other than Permitted Investments.

 

    	41

    	 

    

 

7.4.          Loans.
Make advances, loans or extensions of credit to any Person, other than Permitted Loans.

 

7.5.          Capital
Expenditures. Contract for, purchase or make any expenditure or commitments for Capital
Expenditures except in compliance with Section 2.8 and in accordance with the Budget and the Schedule of Base Operating Expenses.

 

7.6.          Dividends.
Declare, pay or make any dividend or distribution on any Equity Interests of any Borrower (other than dividends or distributions
payable in its stock, or split-ups or reclassifications of its stock or with respect to the Warrant or dividends or distributions
on any Equity Interests of a Subsidiary of a Borrower to such Borrower) or apply any of its funds, property or assets to the purchase,
redemption or other retirement of any Equity Interest, or of any options to purchase or acquire any Equity Interest of any Borrower.

 

7.7.          Indebtedness.
Create, incur, assume or suffer to exist any Indebtedness other than Permitted Indebtedness, provided that no Borrower shall create,
incur or assume any Permitted Indebtedness described in clauses (c), (f) or (i) of the definition “Permitted Indebtedness”
or refinance any such Permitted Indebtedness if an Event of Default shall have occurred and be continuing at the time of such creation,
incurrence, assumption or refinancing or would result therefrom. 

 

7.8.          Nature
of Business. Substantially change the nature of the business in which it is presently
engaged, nor except as specifically permitted hereby purchase or invest, directly or indirectly, in any assets or property other
than in the Ordinary Course of Business for assets or property which are useful in, necessary for and are to be used in its business
as presently conducted.

 

7.9.          Transactions
with Affiliates. Directly or indirectly, purchase, acquire or lease any property from,
or sell, transfer or lease any property to, or otherwise enter into any transaction or deal with, any Affiliate, except for (i)
transactions among Borrowers which are not expressly prohibited by the terms of this Agreement and which are in the Ordinary Course
of Business, (ii) payment by Borrowers of dividends and distributions permitted under Section 7.6 and interest on Indebtedness
permitted to be incurred by Section 7.7, provided, however, that with regard to any Indebtedness described in clause (d) of the
definition of “Permitted Indebtedness” Borrowers shall not make any payment of interest in cash if an Event of Default
shall have occurred and be continuing at the time of such payment of interest or would result therefrom, (iii) transactions described
on Schedule 7.9 and extensions and renewals of any such transactions (which extensions and renewals shall not be materially adverse
to the Lenders) and (iv) transactions disclosed to the Agent in writing which are have been approved by the board of directors
of the applicable Borrower (including a majority of the independent directors on such board of directors) in the Ordinary Course
of Business, on an arm’s-length basis on terms and conditions no less favorable than terms and conditions which would have
been obtainable from a Person other than an Affiliate.

 

7.10.         Leases.
Enter as lessee into any lease arrangement for real or personal property (unless capitalized and permitted under Section 7.5) except
in compliance with Section 2.8 and in accordance with the Budget and the Schedule of Base Operating Expenses.

 

    	42

    	 

    

 

7.11.         Subsidiaries.

 

(a)          Form
any Subsidiary unless such Subsidiary (i) is not a Foreign Subsidiary, (ii) expressly joins in this Agreement as a borrower and
becomes jointly and severally liable for the obligations of Borrowers hereunder, under the Notes and under any other agreement
between any Borrower and Lenders and (iii) Agent shall have received all documents it may reasonably require to establish compliance
with each of the foregoing conditions.

 

(b)          Enter
into any partnership, joint venture or similar arrangement.

 

7.12.         Fiscal
Year and Accounting Changes. Change its fiscal year from September 30 or make any
change (i) in accounting treatment and reporting practices except as required by GAAP or (ii) in tax reporting treatment except
as required by Applicable Laws.

 

7.13.         Amendment
of Organizational Documents. (i) Change its legal name, (ii) change its form of legal
entity (e.g., converting from a corporation to a limited liability company or vice versa), or (iii) change its jurisdiction of
organization or become (or attempt or purport to become) organized in more than one jurisdiction, in any such case without (x)
giving at least thirty (30) days prior written notice of such intended change to Agent and (y) having received from Agent written
confirmation that Agent has taken all steps necessary for Agent to continue the perfection of and protect the enforceability and
priority of its Liens in the Collateral belonging to such Borrower and in the Equity Interests of such Borrower.

 

7.14.         Compliance
with ERISA. (i) (x) Maintain, or permit any member of the Controlled Group to maintain,
or (y) become obligated to contribute, or permit any member of the Controlled Group to become obligated to contribute, to any Plan,
other than those Plans disclosed on Schedule 5.8(d), (ii) engage, or permit any member of the Controlled Group to engage, in any
non-exempt “prohibited transaction”, as that term is defined in Section 406 of ERISA or Section 4975 of the Code, (iii)
terminate, or permit any member of the Controlled Group to terminate, any Plan where such event could result in any liability of
any Borrower or any member of the Controlled Group or the imposition of a lien on the property of any Borrower or any member of
the Controlled Group pursuant to Section 4068 of ERISA, (iv) incur, or permit any member of the Controlled Group to incur, any
withdrawal liability to any Multiemployer Plan; (v) fail promptly to notify Agent of the occurrence of any Termination Event, (vi)
fail to comply, or permit a member of the Controlled Group to fail to comply, with the requirements of ERISA or the Code or other
Applicable Laws in respect of any Plan, (vii) fail to meet, permit any member of the Controlled Group to fail to meet, or permit
any Plan to fail to meet all minimum funding requirements under ERISA and the Code, without regard to any waivers or variances,
or postpone or delay or allow any member of the Controlled Group to postpone or delay any funding requirement with respect of any
Plan, or (viii) cause, or permit any member of the Controlled Group to cause, a representation or warranty in Section 5.8(d) to
cease to be true and correct.

 

7.15.         Prepayment
of Indebtedness. At any time, directly or indirectly, prepay any Indebtedness (other
than to Lenders), or repurchase, redeem, retire or otherwise acquire any Indebtedness of any Borrower.

 

    	43

    	 

    

 

7.16.         Other
Agreements. Enter into any material amendment, waiver or modification of any Material
Contracts or any related agreements.

 

7.17.         Schedule
of Base Operating Expenses Variances. Allow the expenses of Borrowers to exceed the
amounts set forth in Budget or the Schedule of Base Operating Expenses by more than five percent (5%) for any fiscal quarter.

 

VIII.         CONDITIONS
PRECEDENT.

 

8.1.          Conditions
to Initial Advances. The agreement of Lenders to make the initial Advances requested
to be made on the Closing Date is subject to the satisfaction, or waiver by Agent, immediately prior to or concurrently with the
making of such Advances, of the following conditions precedent: 

 

(a)          Notes.
Agent shall have received the Notes duly executed and delivered by an authorized officer of each Borrower;

 

(b)          Other
Documents. Agent shall have received each of the executed Other Documents;

 

(c)          Closing
Certificate. Agent shall have received a closing certificate signed by the Chief Financial Officer, the Chief Executive Officer,
the Chief Operating Officer or the President of each Borrower dated as of the Closing Date, stating that (i) all representations
and warranties of each Borrower set forth in this Agreement and the Other Documents are true and correct on and as of such date,
and (ii) on such date no Default or Event of Default has occurred or is continuing;

 

(d)          Filings,
Registrations and Recordings. Each document (including any Uniform Commercial Code financing statement and other documents
of recordation) required by Section 4.2 (other than any Landlord Personal Property Collateral Access Agreement or control agreement
with respect to deposit accounts) or elsewhere in this Agreement, any related agreement or under Applicable Laws or reasonably
requested by the Agent to be filed, registered or recorded in order to create, in favor of Agent, a perfected security interest
in and Lien upon the Collateral shall have been submitted for filing, registration or recording in each jurisdiction in which the
filing, registration or recordation thereof is so required or requested;

 

(e)          Secretary’s
Certificates, Authorizing Resolutions and Good Standings of Borrowers. Agent shall have received a certificate of the Secretary
or Assistant Secretary (or other equivalent officer, partner or manager) of each Borrower in form and substance satisfactory to
Agent dated as of the Closing Date which shall certify (i) copies of resolutions in form and substance reasonably satisfactory
to Agent, of the board of directors (or other equivalent governing body, member or partner) of such Borrower authorizing (x) the
execution, delivery and performance of this Agreement, the Notes and each Other Document to which such Borrower is a party (including
authorization of the incurrence of indebtedness, borrowing of Advances on a joint and several basis with all Borrowers as provided
for herein), and (y) the granting by such Borrower of the security interests in and Liens upon the Collateral to secure all of
the joint and several Obligations of the Borrowers (and such certificate shall state that such resolutions have not been amended,
modified, revoked or rescinded as of the date of such certificate), (ii) the incumbency and signature of the officers of such Borrower
authorized to execute this Agreement and the Other Documents, (iii) copies of the Organizational Documents of such Borrower as
in effect on such date, complete with all amendments thereto, and (iv) the good standing (or equivalent status) of such Borrower
in its jurisdiction of organization and each applicable jurisdiction where the conduct of such Borrower’s business activities
or the ownership of its properties necessitates qualification, as evidenced by good standing certificate(s) (or the equivalent
thereof issued by any applicable jurisdiction) dated not more than 30 days prior to the Closing Date, issued by the Secretary of
State or other appropriate official of each such jurisdiction;

 

    	44

    	 

    

 

(f)          No
Litigation. No litigation, investigation or proceeding before or by any arbitrator or Governmental Body shall be continuing
or threatened against any Borrower or against the officers or directors of any Borrower (A) in connection with this Agreement,
the Other Documents or any of the transactions contemplated thereby and which, in the reasonable opinion of Agent, is deemed material
or (B) which could, in the reasonable opinion of Agent, have a Material Adverse Effect; and (ii) no injunction, writ, restraining
order or other order of any nature materially adverse to any Borrower or the conduct of its business or inconsistent with the due
consummation of the Transactions shall have been issued by any Governmental Body;

 

(g)          Schedule
of Base Operating Expenses and Budget. Agent shall have received the Schedule of Base Operating Expenses and the Budget prepared
by Borrowing Agent for the period commencing on June 1, 2013 and ending on September 30, 2014;

 

(h)          Payment
Instructions. Agent shall have received written instructions from Borrowing Agent directing the application of proceeds of
the initial Advances made pursuant to this Agreement;

 

(i)          Consents.
Agent shall have received any and all Consents set forth on Schedule 5.1 and otherwise necessary to permit the effectuation of
the transactions contemplated by this Agreement and the Other Documents; and, Agent shall have received such Consents and waivers
of such third parties as might assert claims with respect to the Collateral, as Agent and its counsel shall deem necessary;

 

(j)          Compliance
with Laws. Agent shall be reasonably satisfied that each Borrower is in compliance with all Applicable Laws, including those
with respect to the Federal Occupational Safety and Health Act, the Environmental Protection Act, ERISA and the Anti-Terrorism
Laws, the non-compliance with which could reasonably be expected to have a Material Adverse Effect; and

 

(k)          Amendment
to Purchase Agreement. BrickellHouse Holding LLC and Holdings shall have executed and delivered to Agent an amendment to the
Automated Parking Design and Purchase Agreement dated October 19, 2012 between them pursuant which the purchase price for the Brickell
House Project shall be increased to $7,500,000 and such other terms and conditions thereof are amended to their mutual satisfaction
(the “Brickell House Purchase Agreement”).

 

    	45

    	 

    

 

(l)          JBT
Agreement. Borrowing Agent shall have delivered to Agent an execution copy of the Distribution and License Agreement dated
May 15, 2013 between John Bean Technologies Corporation and Holdings pursuant to which John Bean Technologies Corporation has agreed
to manufacture automated guided vehicles and other related services for use with Holdings’ automated parking systems (the
“JBT Agreement”).

 

(m)          Marketing
Agreement. BrickellHouse Holding LLC and Holdings shall have executed and delivered a marketing agreement to Agent pursuant
to which Holdings agrees to pay to Brickell House LLC two percent (2%) of revenues generated by any Borrower from the sale by Holdings
of automated parking solutions through its RoboticValet system after the Closing Date, such payments not to exceed $2,000,000 in
the aggregate (the “Marketing Agreement”).

 

(n)          Consent,
Waiver and Agreement of Existing Creditors. Agent shall have received an execution copy of the Consent, Waiver and Agreement
of Existing Creditors.

 

(o)          Other.
All corporate and other proceedings, and all documents, instruments and other legal matters in connection with the Transactions
shall be satisfactory in form and substance to Agent and its counsel.

 

8.2.          Conditions
to Each Advance. The agreement of Lenders to make any Advance requested to be made
on any date (including the initial Advance), is subject to the satisfaction of the following conditions precedent as of the date
such Advance is made:

 

(a)          Representations
and Warranties. Each of the representations and warranties made by any Borrower in or pursuant to this Agreement, the Other
Documents and any related agreements to which it is a party, and each of the representations and warranties contained in any certificate,
document or financial or other statement furnished at any time under or in connection with this Agreement, the Other Documents
or any related agreement shall be true and correct in all respects on and as of such date as if made on and as of such date (except
to the extent any such representation or warranty expressly relates only to any earlier and/or specified date); and

 

(b)          No
Default. No Event of Default or Default shall have occurred and be continuing on such date, or would exist after giving effect
to the Advances requested to be made, on such date; provided, however that Agent, in its sole discretion, may continue to make
Advances notwithstanding the existence of an Event of Default or Default and that any Advances so made shall not be deemed a waiver
of any such Event of Default or Default.

 

Each request for an
Advance by any Borrower hereunder shall constitute a representation and warranty by each Borrower as of the date of such Advance
that the conditions contained in this subsection shall have been satisfied.

 

IX.          INFORMATION
AS TO BORROWERS.

 

Each Borrower shall,
or shall cause Borrowing Agent on its behalf to, until satisfaction in full of the Obligations and the termination of this Agreement:

 

    	46

    	 

    

 

9.1.          Environmental
Reports. 

 

(a)          In
the event any Borrower obtains, gives or receives notice of any Release or threat of Release of a reportable quantity of any Hazardous
Materials at the Real Property (any such event being hereinafter referred to as a “Hazardous Discharge”) or receives
any notice of violation, request for information or notification that it is potentially responsible for investigation or cleanup
of environmental conditions at the Real Property, demand letter or complaint, order, citation, or other written notice with regard
to any Hazardous Discharge or violation of Environmental Laws affecting the Real Property or any Borrower’s interest therein
or the operations or the business (any of the foregoing is referred to herein as an “Environmental Complaint”) from
any Person, including any Governmental Body, then Borrowing Agent shall, within five (5) Business Days, give written notice of
the same to Agent detailing facts and circumstances of which any Borrower is aware giving rise to the Hazardous Discharge or Environmental
Complaint. Such information is to be provided to allow Agent to protect its security interest in and Lien on the Collateral and
is not intended to create nor shall it create any obligation upon Agent or any Lender with respect thereto.

 

(b)          Borrowing
Agent shall promptly forward to Agent copies of any request for information, notification of potential liability, demand letter
relating to potential responsibility with respect to the investigation or cleanup of Hazardous Materials at any other site owned,
operated or used by any Borrower and shall continue to forward copies of correspondence between any Borrower and any Person, including
any Governmental Body, regarding such claims to Agent until the claim is settled. Borrowing Agent shall promptly forward to Agent
copies of all documents and reports concerning a Hazardous Discharge or Environmental Complaint at the Real Property, operations
or business that any Borrower is required to file under any Environmental Laws. Such information is to be provided solely to allow
Agent to protect Agent’s security interest in and Lien on the Collateral.

 

9.2.          Litigation.
Promptly notify Agent in writing of any claim, litigation, suit or administrative proceeding affecting any Borrower, whether or
not the claim is covered by insurance, and of any litigation, suit or administrative proceeding, which in any such case could reasonably
be expected to have a Material Adverse Effect.

 

9.3.          Material
Occurrences. Immediately notify Agent in writing upon the occurrence of: (a) any Event
of Default or Default; (b) any event, development or circumstance whereby any financial statements or other reports furnished to
Agent fail in any material respect to present fairly, in accordance with GAAP consistently applied, the financial condition or
operating results of any Borrower as of the date of such statements; (c) any accumulated retirement Plan funding deficiency which,
if such deficiency continued for two Plan years and was not corrected as provided in Section 4971 of the Code, could subject any
Borrower to a Tax imposed by Section 4971 of the Code; (d) each and every default by any Borrower which might result in the acceleration
of the maturity of any Indebtedness, including the names and addresses of the holders of such Indebtedness with respect to which
there is a default existing or with respect to which the maturity has been or could be accelerated, and the amount of such Indebtedness;
and (e) any other development in the business or affairs of any Borrower, which could reasonably be expected to have a Material
Adverse Effect; in each case describing the nature thereof and the action Borrowers propose to take with respect thereto.

 

    	47

    	 

    

 

9.4.          Annual
Financial Statements. Furnish Agent and Lenders within one hundred five (105) days
after the end of each fiscal year of Borrowers, financial statements of each of Holdings and its Subsidiaries on a consolidating
and consolidated basis including, but not limited to, statements of income and stockholders’ equity and cash flow from the
beginning of the current fiscal year to the end of such fiscal year and the balance sheet as at the end of such fiscal year, all
prepared in accordance with GAAP applied on a basis consistent with prior practices, and in reasonable detail and audited and reported
upon without qualification by an independent certified public accounting firm selected by Borrowers and satisfactory to Agent (the
“Accountants”). The report shall be accompanied by a Compliance Certificate.

 

9.5.          Quarterly
Financial Statements. Commencing with the fiscal quarter ending June 30, 2013, furnish
Agent and Lenders within fifty (50) days after the end of each fiscal quarter, an unaudited balance sheet of each of Holdings and
its Subsidiaries on a consolidated and consolidating basis and unaudited statements of income and stockholders’ equity and
cash flow of each of Holdings and its Subsidiaries on a consolidated and consolidating basis reflecting results of operations from
the beginning of the fiscal year to the end of such quarter and for such quarter, prepared on a basis consistent with prior practices
and complete and correct in all material respects, subject to normal and recurring year-end adjustments and setting forth in comparative
form the respective financial statements for the corresponding date and period in the previous fiscal year. The reports shall be
accompanied by a Compliance Certificate.

 

9.6.          Other
Reports. Furnish Agent as soon as available, but in any event within ten (10) days
after the issuance thereof, with copies of such financial statements, reports and returns as each Borrower shall file with or furnish
to the SEC or send to its stockholders or members, as applicable.

 

9.7.          Budget.
Furnish Agent and Lenders (a) on each Incremental Advance Effective Date, an amendment to the most recently delivered Budget setting
forth general, administrative and operating expenses of Borrowers on a consolidated basis in an aggregate amount that is less than
or equal to the Maximum Advance Amount after giving effect to the related Incremental Advance Commitments, provided that such amendment
shall not be required if such Incremental Advance Effective Date occurs on or prior to the date that is thirty (30) days (or such
later date as the Agent shall reasonably agree) after the date of the initial Advances, in an aggregate principal amount equal
to $2,000,000, have been fully funded in accordance with Section 2.1 and the Maximum Advance Amount after giving effect to the
related Incremental Advance Commitments is less than $7,000,000, (b) no later than thirty (30) days prior to October 1 of each
year during the Term, beginning October 1, 2014, for the fiscal year ending September 30 of the next year, a Budget for each such
fiscal year, and (c) no later than fifteen (15) days after the end of each fiscal month (other than the last fiscal month of each
fiscal year commencing with September 30, 2014), any amendments to the Schedule of Base Operating Expenses or the most recently
delivered Budget, provided that any amendments to the Schedule of Base Operating Expenses shall be reasonably satisfactory to the
Required Lenders, and in any case accompanied by a certificate signed by the President or Chief Financial Officer of Borrowing
Agent to the effect that such Budget or amendment, as applicable, has been prepared on the basis of sound financial planning practice
consistent with past Budgets and financial statements and that such officer has no reason to question the reasonableness of any
material assumptions on which such projections were prepared.

 

    	48

    	 

    

 

9.8.          Variances
From Schedule of Base Operating Expenses. Furnish Agent, concurrently with the delivery
of the financial statements referred to in Sections 9.4 and 9.5, a written report summarizing all material variances from the Budget
and the Schedule of Base Operating Expenses and a discussion and analysis by management with respect to such variances.

 

9.9.          Notice
of Suits, Adverse Events. Furnish Agent with prompt written notice of (i) any lapse
or other termination of any Consent issued to any Borrower by any Governmental Body or any other Person that is material to the
operation of any Borrower’s business, (ii) any refusal by any Governmental Body or any other Person to renew or extend any
such Consent; and (iii) copies of any periodic or special reports filed by any Borrower with any Governmental Body or Person, if
such reports indicate any material change in the business, operations, affairs or condition of any Borrower, or if copies thereof
are requested by Lender, and (iv) copies of any material notices and other communications from any Governmental Body or Person
which specifically relate to any Borrower.

 

9.10.         ERISA
Notices and Requests. Furnish Agent with immediate written notice in the event that
(i) any Borrower or any member of the Controlled Group knows or has reason to know that a Termination Event has occurred, together
with a written statement describing such Termination Event and the action, if any, which such Borrower or any member of the Controlled
Group has taken, is taking, or proposes to take with respect thereto and, when known, any action taken or threatened by the Internal
Revenue Service, Department of Labor or PBGC with respect thereto, (ii) any Borrower or any member of the Controlled Group knows
or has reason to know that a prohibited transaction (as defined in Sections 406 of ERISA and 4975 of the Code) has occurred together
with a written statement describing such transaction and the action which such Borrower or any member of the Controlled Group has
taken, is taking or proposes to take with respect thereto, (iii) a funding waiver request has been filed with respect to any Plan
together with all communications received by any Borrower or any member of the Controlled Group with respect to such request, (iv)
any increase in the benefits of any existing Plan or the establishment of any new Plan or the commencement of contributions to
any Plan to which any Borrower or any member of the Controlled Group was not previously contributing shall occur, (v) any Borrower
or any member of the Controlled Group shall receive from the PBGC a notice of intention to terminate a Plan or to have a trustee
appointed to administer a Plan, together with copies of each such notice, (vi) any Borrower or any member of the Controlled Group
shall receive any favorable or unfavorable determination letter from the Internal Revenue Service regarding the qualification of
a Plan under Section 401(a) of the Code, together with copies of each such letter; (vii) any Borrower or any member of the Controlled
Group shall receive a notice regarding the imposition of withdrawal liability, together with copies of each such notice; (viii)
any Borrower or any member of the Controlled Group shall fail to make a required installment or any other required payment under
the Code or ERISA on or before the due date for such installment or payment; or (ix) any Borrower or any member of the Controlled
Group knows that (a) a Multiemployer Plan has been terminated, (b) the administrator or plan sponsor of a Multiemployer Plan intends
to terminate a Multiemployer Plan, (c) the PBGC has instituted or will institute proceedings under Section 4042 of ERISA to terminate
a Multiemployer Plan or (d) a Multiemployer Plan is subject to Section 432 of the Code or Section 305 of ERISA.

 

    	49

    	 

    

 

9.11.         Additional
Documents. Execute and deliver to Agent, upon request, such documents and agreements
as Agent may, from time to time, reasonably request to carry out the purposes, terms or conditions of this Agreement.

 

9.12.         Updates
to Certain Schedules. Deliver to Agent promptly as shall be required to maintain the
related representations and warranties as true and correct, updates to Schedules 4.4(b) (Ownership and Location of Collateral),
5.19 (Equity Interests), 5.20 (Commercial Tort Claims) and 5.21 (Letter-of-Credit Rights); provided, that absent the occurrence
and continuance of any Event of Default, Borrower shall only be required to provide such updates on a quarterly basis in connection
with delivery of a Compliance Certificate with respect to the applicable month. Any such updated Schedules delivered by Borrowers
to Agent in accordance with this Section 9.12 shall automatically and immediately be deemed to amend and restate the prior version
of such Schedule previously delivered to Agent and attached to and made part of this Agreement.

 

9.13.         Financial
Disclosure. Each Borrower hereby irrevocably authorizes and directs all accountants
and auditors employed by such Borrower at any time during the Term to exhibit and deliver to Agent and each Lender copies of any
of such Borrower’s financial statements, trial balances or other accounting records of any sort in the accountant’s
or auditor’s possession, and to disclose to Agent and each Lender any information such accountants may have concerning such
Borrower’s financial status and business operations. Each Borrower hereby authorizes all Governmental Bodies to furnish to
Agent and each Lender copies of reports or examinations relating to such Borrower, whether made by such Borrower or otherwise;
however, Agent and each Lender will attempt to obtain such information or materials directly from such Borrower prior to obtaining
such information or materials from such accountants or Governmental Bodies. 

 

X.           EVENTS
OF DEFAULT.

 

The occurrence of any one or more of the
following events shall constitute an “Event of Default”:

 

10.1.          Nonpayment.
Failure by any Borrower to pay when due (a) any principal or interest on the Obligations (including without limitation pursuant
to Section 2.6), or (b) any other fee, charge, amount or liability provided for herein or in any Other Document, in each case
whether at maturity, by reason of acceleration pursuant to the terms of this Agreement, by notice of intention to prepay or by
required prepayment.

 

10.2.          Breach
of Representation. Any representation or warranty made or deemed made by any Borrower
in this Agreement, any Other Document or any related agreement or in any certificate, document or financial or other statement
furnished at any time in connection herewith or therewith shall prove to have been incorrect or misleading in any material respect
on the date when made or deemed to have been made; 

 

10.3.          Financial
Information. Failure by any Borrower to (i) furnish financial information when due
or when requested which is unremedied for a period of fifteen (15) days, or (ii) permit the inspection of its books or records
or access to its premises for audits and appraisals in accordance with the terms hereof; 

 

    	50

    	 

    

 

10.4.          Judicial
Actions. Issuance of a notice of Lien, levy, assessment, injunction or attachment
(a) against any Borrower’s inventory or Receivables or (b) against a material portion of any Borrower’s other property
which is not stayed or lifted within thirty (30) days;

 

10.5.          Noncompliance.
(i) Failure or neglect of any Borrower to perform, keep or observe any term, provision, condition, covenant contained in Article
VII or (ii) failure or neglect of any Borrower to perform, keep or observe any other term, provision, condition or covenant contained
in this Agreement or in any Other Document which is not cured, if curable, within thirty (30) days from the occurrence of such
failure or neglect, provided, however, in the event of the failure or neglect of any Borrower to perform any covenant under Section
6.10 the cure period shall be five (5) days from the occurrence of such failure or neglect;

 

10.6.          Judgments.
Any (a) judgment or judgments, writ(s), order(s) or decree(s) for the payment of money are rendered against any Borrower for an
aggregate amount in excess of $250,000 or against all Borrowers for an aggregate amount in excess of $250,000 and (b) (i) action
shall be legally taken by any judgment creditor to levy upon assets or properties of any Borrower to enforce any such judgment,
or (ii) such judgment shall remain undischarged for a period of thirty (30) consecutive days during which a stay of enforcement
of such judgment, by reason of a pending appeal or otherwise, shall not be in effect, or (iii) any Liens arising by virtue of the
rendition, entry or issuance of such judgment upon assets or properties of any Borrower shall be senior to any Liens in favor of
Agent on such assets or properties; 

 

10.7.          Bankruptcy.
Any Borrower shall (i) apply for, consent to or suffer the appointment of, or the taking of possession by, a receiver, custodian,
trustee, liquidator or similar fiduciary of itself or of all or a substantial part of its property, (ii) admit in writing its inability,
or be generally unable, to pay its debts as they become due or cease operations of its present business, (iii) make a general assignment
for the benefit of creditors, (iv) commence a voluntary case under any state or federal bankruptcy or receivership laws (as now
or hereafter in effect), (v) be adjudicated a bankrupt or insolvent (including by entry of any order for relief in any involuntary
bankruptcy or insolvency proceeding commenced against it), (vi) file a petition seeking to take advantage of any other law providing
for the relief of debtors, (vii) acquiesce to, or fail to have dismissed, within sixty (60) days, any petition filed against it
in any involuntary case under such bankruptcy laws, or (viii) take any action for the purpose of effecting any of the foregoing;

 

10.8.          Lien
Priority. Any Lien created hereunder or provided for hereby or under any of the Other
Documents or any related agreement for any reason ceases to be or is not a valid and perfected Lien having a first priority interest
(subject only to Permitted Encumbrances);

 

10.9.          Cross
Default. Either (x) any specified “event of default” under any Indebtedness
(other than the Obligations) of any Borrower with a then-outstanding principal balance (or, in the case of any Indebtedness not
so denominated, with a then-outstanding total obligation amount) of $250,000 or more, or any other event or circumstance which
would permit the holder of any such Indebtedness of any Borrower to accelerate such Indebtedness (and/or the obligations of Borrower
thereunder) prior to the scheduled maturity or termination thereof, shall occur (regardless of whether the holder of such Indebtedness
shall actually accelerate, terminate or otherwise exercise any rights or remedies with respect to such Indebtedness) or (y) a default
of the obligations of any Borrower under any other agreement to which it is a party shall occur which has or is reasonably likely
to have a Material Adverse Effect;

 

    	51

    	 

    

 

10.10.         Change
of Control. Any Change of Control shall occur;

 

10.11.         Invalidity.
Any material provision of this Agreement or any Other Document shall, for any reason, cease to be valid and binding on any Borrower,
or any Borrower shall so claim in writing to Agent or any Lender or any Borrower challenges the validity of or its liability under
this Agreement or any Other Document; 

 

10.12.         Pension
Plans. An event or condition specified in Section 7.14 or 9.10 shall occur or exist
with respect to any Plan and, as a result of such event or condition, together with all other such events or conditions, any Borrower
or any member of the Controlled Group shall incur, or in the opinion of Agent be reasonably likely to incur, a liability to a Plan
or the PBGC (or both) which, in the reasonable judgment of Agent, would have a Material Adverse Effect;

 

10.13.         Reportable
Compliance Event. The occurrence of any Reportable Compliance Event, or any Borrower’s
failure to immediately report a Reportable Compliance Event in accordance with Section 16.15; or

 

10.14.         Certain
Agreements. Any Borrower shall default in the performance or compliance with any of
the provisions of the Brickell House Purchase Agreement, the JBT Agreement or the Marketing Agreement and such default shall have
not been cured or waived, if applicable, in accordance with the terms of the applicable agreement.

 

XI.          LENDERS’
RIGHTS AND REMEDIES AFTER DEFAULT.

 

11.1.          Rights
and Remedies. Upon the occurrence of: (i) an Event of Default pursuant to Section
10.7 (other than Section 10.7(vii)), all Obligations shall be immediately due and payable and this Agreement and the obligation
of Lenders to make Advances shall be deemed terminated, (ii) any of the other Events of Default and at any time thereafter, at
the option of Agent or at the direction of Required Lenders all Obligations shall be immediately due and payable and Agent or Required
Lenders shall have the right to terminate this Agreement and to terminate the obligation of Lenders to make Advances; and (iii)
without limiting Section 8.2, any Event of Default under Section 10.7(vii), the obligation of Lenders to make Advances
hereunder shall be suspended until such time as such involuntary petition shall be dismissed. timely in accordance with Section
10.7(vii). Upon the occurrence of any Event of Default, Agent shall have the right to exercise any and all rights and remedies
provided for herein, under the Other Documents, under the Uniform Commercial Code and at law or equity generally, including the
right to foreclose the security interests granted herein and to realize upon any Collateral by any available judicial procedure
and/or to take possession of and sell any or all of the Collateral with or without judicial process. Agent may enter any of Borrower’s
premises without legal process and without incurring liability to any Borrower therefor, and Agent may thereupon, or at any time
thereafter, in its discretion without notice or demand, take the Collateral and remove the same to such place as Agent may deem
advisable and Agent may require Borrowers to make the Collateral available to Agent at a convenient place. With or without having
the Collateral at the time or place of sale, Agent may sell the Collateral, or any part thereof, at public or private sale, at
any time or place, in one or more sales, at such price or prices, and upon such terms, either for cash, credit or future delivery,
as Agent may elect. Except as to that part of the Collateral which is perishable or threatens to decline speedily in value or is
of a type customarily sold on a recognized market, Agent shall give Borrowers reasonable notification of such sale or sales, it
being agreed that in all events written notice mailed to Borrowing Agent at least ten (10) days prior to such sale or sales is
reasonable notification. At any public sale Agent or any Lender may, to the extent permitted by Applicable Law, bid (including
credit bid) for and become the purchaser, and Agent, any Lender or any other purchaser at any such sale thereafter shall hold the
Collateral sold absolutely free from any claim or right of whatsoever kind, including any equity of redemption and all such claims,
rights and equities are hereby expressly waived and released by each Borrower. The cash proceeds realized from the sale of any
Collateral shall be applied to the Obligations in the order set forth in Section 11.4. Noncash proceeds will only be applied to
the Obligations as they are converted into cash. If any deficiency shall arise, Borrowers shall remain liable to Agent and Lenders
therefor.

 

    	52

    	 

    

 

11.2.          Agent’s
Discretion. Agent shall have the right in its sole discretion to determine which rights,
Liens, security interests or remedies Agent may at any time pursue, relinquish, subordinate, or modify, which procedures, timing
and methodologies to employ, and what any other action to take with respect to any or all of the Collateral and in what order,
thereto and such determination shall not in any way modify or affect any of Agent’s or Lenders’ rights hereunder as
against Borrowers or each other.

 

11.3.          Rights
and Remedies not Exclusive. The enumeration of the foregoing rights and remedies is
not intended to be exhaustive and the exercise of any rights or remedy shall not preclude the exercise of any other right or remedies
provided for herein or otherwise provided by law, all of which shall be cumulative and not alternative.

 

11.4.          Allocation
of Payments After Event of Default. Notwithstanding any other provisions of this Agreement
(other than the last paragraph of this Section 11.4) to the contrary, after the occurrence and during the continuance of an Event
of Default, all amounts collected or received by the Agent on account of the Obligations, or in respect of the Collateral may,
at Agent’s discretion, be paid over or delivered as follows:

 

FIRST, to the payment
of all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) of the Agent in connection with
enforcing its rights and the rights of the Lenders under this Agreement and the Other Documents;

 

SECOND, to the payment
of all reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees) of each of the Lenders to the extent
owing to such Lender pursuant to the terms of this Agreement;

 

THIRD, to the payment of all Obligations
arising under this Agreement and the Other Documents consisting of accrued fees and interest;

 

FOURTH, to the payment
of the outstanding principal amount of the Obligations arising under this Agreement;

 

    	53

    	 

    

 

FIFTH, to all other
Obligations arising under this Agreement which shall have become due and payable hereunder, under the Other Documents or otherwise
and not repaid pursuant to clauses FIRST through FOURTH above; and

 

SIXTH, to the payment
of the surplus, if any, to whoever may be lawfully entitled to receive such surplus.

 

In carrying out the
foregoing, (i) amounts received shall be applied in the numerical order provided until exhausted prior to application to the next
succeeding category and (ii) each of the Lenders shall receive (so long as it is not a Defaulting Lender) an amount equal to its
pro rata share (based on the proportion that the then outstanding Advances held by such Lender bears to the aggregate then outstanding
Advances) of amounts available to be applied pursuant to clauses SECOND, THIRD, FOURTH and FIFTH above.

 

Notwithstanding anything
in this Section 11.4, after the occurrence and during the continuance of an Event of Default, all amounts collected or received
by the Agent on account of the Obligations owing by any particular Borrower, or in respect of the Collateral of a particular Borrower
may, at Agent’s discretion, be paid over or delivered in accordance with the foregoing clauses FIRST through SIXTH (i) first
in respect of such Obligations owing by such Borrower and (ii) after the irrevocable payment in full of all such Obligations owing
by such Borrower, then to the Obligations owing by the other Borrowers.

 

XII.         WAIVERS
AND JUDICIAL PROCEEDINGS.

 

12.1.          Waiver
of Notice. Each Borrower hereby waives notice of non-payment of any of the Obligations,
demand, presentment, protest and notice thereof with respect to any and all instruments, notice of acceptance hereof, notice of
loans or advances made, credit extended, Collateral received or delivered, or any other action taken in reliance hereon, and all
other demands and notices of any description, except such as are expressly provided for herein.

 

12.2.          Delay.
No delay or omission on Agent’s or any Lender’s part in exercising any right, remedy or option shall operate as a waiver
of such or any other right, remedy or option or of any Default or Event of Default.

 

12.3.          Jury
Waiver. EACH PARTY TO THIS AGREEMENT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY
JURY OF ANY CLAIM, COUNTERCLAIM, DEMAND, ACTION OR CAUSE OF ACTION (A) ARISING UNDER THIS AGREEMENT, ANY OTHER DOCUMENT OR ANY
OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR (B) IN ANY WAY CONNECTED WITH OR RELATED
OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS AGREEMENT, ANY OTHER DOCUMENT OR ANY OTHER
INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO IN
EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE AND EACH PARTY HEREBY
CONSENTS THAT ANY SUCH CLAIM, COUNTERCLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY, AND
THAT ANY PARTY TO THIS AGREEMENT MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS SECTION WITH ANY COURT AS WRITTEN EVIDENCE
OF THE CONSENTS OF THE PARTIES HERETO TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

 

    	54

    	 

    

 

XIII.         EFFECTIVE
DATE AND TERMINATION.

 

13.1.          Term.

 

(a)          This
Agreement, which shall inure to the benefit of and shall be binding upon the respective successors and permitted assigns of each
Borrower, Agent and each Lender, shall become effective on the date hereof and shall continue in full force and effect until May
31, 2016 (the “Term”) unless sooner terminated as herein provided.

 

(b)          Borrowers
may terminate this Agreement at any time upon five (5) Business Days prior written notice to Agent upon payment in full of the
Obligations.

 

13.2.          Termination.
The termination of this Agreement shall not affect Agent’s or any Lender’s rights, or any of the Obligations having
their inception prior to the effective date of such termination or any Obligations which pursuant to the terms hereof continue
to accrue after such date, and the provisions hereof shall continue to be fully operative until all transactions entered into,
rights or interests created and Obligations have been fully and indefeasibly paid, disposed of, concluded or liquidated. The security
interests, Liens and rights granted to Agent and Lenders hereunder and the financing statements filed hereunder shall continue
in full force and effect, notwithstanding the termination of this Agreement, until all of the Obligations have been paid and performed
in full after the termination of this Agreement or each Borrower has furnished Agent and Lenders with an indemnification satisfactory
to Agent and Lenders with respect thereto. Accordingly, each Borrower waives any rights which it may have under the Uniform Commercial
Code to demand the filing of termination statements with respect to the Collateral, and Agent shall not be required to send such
termination statements to each Borrower, or to file them with any filing office, unless and until this Agreement shall have been
terminated in accordance with its terms and all Obligations have been paid in full in immediately available funds. All representations,
warranties, covenants, waivers and agreements contained herein shall survive termination hereof until all Obligations are paid
and performed in full.

 

XIV.         REGARDING
AGENT.

 

14.1.          Appointment.
Each Lender hereby designates Parking Source LLC to act as Agent for such Lender under this Agreement and the Other Documents.
Each Lender hereby irrevocably authorizes Agent to take such action on its behalf under the provisions of this Agreement and the
Other Documents and to exercise such powers and to perform such duties hereunder and thereunder as are specifically delegated to
or required of Agent by the terms hereof and thereof and such other powers as are reasonably incidental thereto and Agent shall
hold all Collateral, payments of principal and interest, charges and collections received pursuant to this Agreement, for the ratable
benefit of Lenders. Agent may perform any of its duties hereunder by or through its agents or employees. As to any matters not
expressly provided for by this Agreement (including collection of the Notes) Agent shall not be required to exercise any discretion
or take any action, but shall be required to act or to refrain from acting (and shall be fully protected in so acting or refraining
from acting) upon the instructions of the Required Lenders, and such instructions shall be binding; provided, however, that Agent
shall not be required to take any action which, in Agent’s discretion, exposes Agent to liability or which is contrary to
this Agreement or the Other Documents or Applicable Law unless Agent is furnished with an indemnification reasonably satisfactory
to Agent with respect thereto.

 

    	55

    	 

    

 

14.2.          Nature
of Duties. Agent shall have no duties or responsibilities except those expressly set
forth in this Agreement and the Other Documents. Neither Agent nor any of its officers, directors, employees or agents shall be
(i) liable for any action taken or omitted by them as such hereunder or in connection herewith, unless caused by their gross negligence
or willful misconduct (as determined by a court of competent jurisdiction in a final non-appealable judgment), or (ii) responsible
in any manner for any recitals, statements, representations or warranties made by any Borrower or any officer thereof contained
in this Agreement, or in any of the Other Documents or in any certificate, report, statement or other document referred to or provided
for in, or received by Agent under or in connection with, this Agreement or any of the Other Documents or for the value, validity,
effectiveness, genuineness, due execution, enforceability or sufficiency of this Agreement, or any of the Other Documents or for
any failure of any Borrower to perform its obligations hereunder. 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
of the Other Documents, or to inspect the properties, books or records of any Borrower. The duties of Agent as respects the Advances
to Borrowers shall be mechanical and administrative in nature; Agent shall not have by reason of this Agreement a fiduciary relationship
in respect of any Lender; and nothing in this Agreement, expressed or implied, is intended to or shall be so construed as to impose
upon Agent any obligations in respect of this Agreement or the transactions described herein except as expressly set forth herein.

 

14.3.          Lack
of Reliance on Agent. Independently and without reliance upon Agent or any other Lender,
each Lender has made and shall continue to make (i) its own independent investigation of the financial condition and affairs of
each Borrower in connection with the making and the continuance of the Advances hereunder and the taking or not taking of any action
in connection herewith, and (ii) its own appraisal of the creditworthiness of each Borrower. Agent shall have no duty or responsibility,
either initially or on a continuing basis, to provide any Lender with any credit or other information with respect thereto, whether
coming into its possession before making of the Advances or at any time or times thereafter except as shall be provided by any
Borrower pursuant to the terms hereof. Agent shall not be responsible to any Lender for any recitals, statements, information,
representations or warranties herein or in any agreement, document, certificate or a statement delivered in connection with or
for the execution, effectiveness, genuineness, validity, enforceability, collectability or sufficiency of this Agreement or any
Other Document, or of the financial condition of any Borrower, or be required to make any inquiry concerning either the performance
or observance of any of the terms, provisions or conditions of this Agreement, the Notes, the Other Documents or the financial
condition or prospects of any Borrower, or the existence of any Event of Default or any Default.

 

    	56

    	 

    

 

14.4.          Resignation
of Agent; Successor Agent. Agent may resign on sixty (60) days written notice to each
of Lenders and Borrowing Agent and upon such resignation, the Required Lenders will promptly designate a successor Agent reasonably
satisfactory to Borrowers (provided that no such approval by Borrowers shall be required (i) in any case where the successor Agent
is one of the Lenders or (ii) after the occurrence and during the continuance of any Event of Default). Any such successor Agent
shall succeed to the rights, powers and duties of Agent, and shall in particular succeed to all of Agent’s right, title and
interest in and to all of the Liens in the Collateral securing the Obligations created hereunder or any Other Document, and the
term “Agent” shall mean such successor agent effective upon its appointment, and the former Agent’s rights, powers
and duties as Agent shall be terminated, without any other or further act or deed on the part of such former Agent. However, notwithstanding
the foregoing, if at the time of the effectiveness of the new Agent’s appointment, any further actions need to be taken in
order to provide for the legally binding and valid transfer of any Liens in the Collateral from former Agent to new Agent and/or
for the perfection of any Liens in the Collateral as held by new Agent or it is otherwise not then possible for new Agent to become
the holder of a fully valid, enforceable and perfected Lien as to any of the Collateral, former Agent shall continue to hold such
Liens solely as agent for perfection of such Liens on behalf of new Agent until such time as new Agent can obtain a fully valid,
enforceable and perfected Lien on all Collateral, provided that Agent shall not be required to or have any liability or responsibility
to take any further actions after such date as such agent for perfection to continue the perfection of any such Liens (other than
to forego from taking any affirmative action to release any such Liens). After any Agent’s resignation as Agent, the provisions
of this Article XIV, and any indemnification rights under this Agreement, including without limitation, rights arising under Section
16.5, shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement (and
in the event resigning Agent continues to hold any Liens pursuant to the provisions of the immediately preceding sentence, the
provisions of this Article XIV and any indemnification rights under this Agreement, including without limitation, rights arising
under Section 16.5, shall inure to its benefit as to any actions taken or omitted to be taken by it in connection with such Liens).

 

14.5.          Certain
Rights of Agent. If Agent shall request instructions from Lenders with respect to
any act or action (including failure to act) in connection with this Agreement or any Other Document, Agent shall be entitled to
refrain from such act or taking such action unless and until Agent shall have received instructions from the Required Lenders;
and Agent shall not incur liability to any Person by reason of so refraining. Without limiting the foregoing, Lenders shall not
have any right of action whatsoever against Agent as a result of its acting or refraining from acting hereunder in accordance with
the instructions of the Required Lenders.

 

14.6.          Reliance.
Agent shall be entitled to rely, and shall be fully protected in relying, upon any note, writing, resolution, notice, statement,
certificate, email, facsimile, telex, teletype or telecopier message, cablegram, order or other document or telephone message believed
by it to be genuine and correct and to have been signed, sent or made by the proper person or entity, and, with respect to all
legal matters pertaining to this Agreement and the Other Documents and its duties hereunder, upon advice of counsel selected by
it. Agent may employ agents and attorneys-in-fact and shall not be liable for the default or misconduct of any such agents or attorneys-in-fact
selected by Agent with reasonable care.

 

    	57

    	 

    

 

14.7.          Notice
of Default. Agent shall not be deemed to have knowledge or notice of the occurrence
of any Default or Event of Default hereunder or under the Other Documents, unless Agent has received notice from a Lender or Borrowing
Agent referring to this Agreement or the Other Documents, describing such Default or Event of Default and stating that such notice
is a “notice of default”. In the event that Agent receives such a notice, Agent shall give notice thereof to Lenders.
Agent shall take such action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders;
provided, that, unless and until Agent shall have received such directions, Agent may (but shall not be obligated to) take such
action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the
best interests of Lenders.

 

14.8.          Indemnification.
To the extent Agent is not reimbursed and indemnified by Borrowers, each Lender will reimburse and indemnify Agent in proportion
to its respective portion of the outstanding aggregate principal amount of Advances (or, if no Advances are outstanding, pro rata
according to the percentage that its Commitment Amount constitutes of the total aggregate Commitment Amounts), from and against
any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of
any kind or nature whatsoever which may be imposed on, incurred by or asserted against Agent in performing its duties hereunder,
or in any way relating to or arising out of this Agreement or any Other Document; provided that Lenders shall not be liable for
any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
resulting from Agent’s gross negligence or willful misconduct (as determined by a court of competent jurisdiction in a final
non-appealable judgment).

 

14.9.          Agent
in its Individual Capacity. With respect to the obligation of Agent to lend under
this Agreement, the Advances made by it shall have the same rights and powers hereunder as any other Lender and as if it were not
performing the duties as Agent specified herein; and the term “Lender” or any similar term shall, unless the context
clearly otherwise indicates, include Agent in its individual capacity as a Lender. Agent may engage in business with any Borrower
as if it were not performing the duties specified herein, and may accept fees and other consideration from any Borrower for services
in connection with this Agreement or otherwise without having to account for the same to Lenders.

 

14.10.         Delivery
of Documents. To the extent Agent receives financial statements required under Sections
9.4, 9.5, 9.7 and 9.8 or any other certificates or documents required to be provided by any Borrower pursuant to the terms of this
Agreement which any Borrower is not obligated to deliver to each Lender, Agent will promptly furnish such documents and information
to Lenders.

 

XV.          BORROWING
AGENCY.

 

15.1.          Borrowing
Agency Provisions.

 

(a)          Each
Borrower hereby irrevocably designates Borrowing Agent to be its attorney and agent and in such capacity to (i) borrow, (ii) request
advances, (iii) sign and endorse notes, (iv) execute and deliver all instruments, documents, and all other certificates, notice,
writings and further assurances now or hereafter required hereunder and (v) otherwise take action under and in connection with
this Agreement and the Other Documents, all on behalf of and in the name such Borrower or Borrowers, and hereby authorizes Agent
to pay over or credit all loan proceeds hereunder in accordance with the request of Borrowing Agent.

 

    	58

    	 

    

 

(b)          The
handling of this credit facility as a co-borrowing facility with a borrowing agent in the manner set forth in this Agreement is
solely as an accommodation to Borrowers and at their request. Neither Agent nor any Lender shall incur liability to Borrowers as
a result thereof. To induce Agent and Lenders to do so and in consideration thereof, each Borrower hereby indemnifies Agent and
each Lender and holds Agent and each Lender harmless from and against any and all liabilities, expenses, losses, damages and claims
of damage or injury asserted against Agent or any Lender by any Person arising from or incurred by reason of the handling of the
financing arrangements of Borrowers as provided herein, reliance by Agent or any Lender on any request or instruction from Borrowing
Agent or any other action taken by Agent or any Lender with respect to this Section 15.1 except due to willful misconduct or gross
negligence by the indemnified party (as determined by a court of competent jurisdiction in a final and non-appealable judgment).

 

(c)          All
Obligations shall be joint and several, and each Borrower shall make payment upon the maturity of the Obligations by acceleration
or otherwise, and such obligation and liability on the part of each Borrower shall in no way be affected by any extensions, renewals
and forbearance granted by Agent or any Lender to any Borrower, failure of Agent or any Lender to give any Borrower notice of borrowing
or any other notice, any failure of Agent or any Lender to pursue or preserve its rights against any Borrower, the release by Agent
or any Lender of any Collateral now or thereafter acquired from any Borrower, and such agreement by each Borrower to pay upon any
notice issued pursuant thereto is unconditional and unaffected by prior recourse by Agent or any Lender to the other Borrowers
or any Collateral for such Borrower’s Obligations or the lack thereof. Each Borrower waives all suretyship defenses.

 

15.2.          Waiver
of Subrogation. Each Borrower expressly waives any and all rights of subrogation,
reimbursement, indemnity, exoneration, contribution of any other claim which such Borrower may now or hereafter have against the
other Borrowers or any other Person directly or contingently liable for the Obligations hereunder, or against or with respect to
any other Borrowers’ property (including, without limitation, any property which is Collateral for the Obligations), arising
from the existence or performance of this Agreement, until termination of this Agreement and repayment in full of the Obligations.

 

    	59

    	 

    

 

XVI.         MISCELLANEOUS.

 

16.1.          Governing
Law. This Agreement and each Other Document, and all matters relating hereto or thereto
or arising herefrom or therefrom (whether arising under contract law, tort law or otherwise) shall be governed by and construed
in accordance with the laws of the State of New York applied to contracts to be performed wholly within the State of New York without
regard to conflict of laws principles thereof that would result in the application of any law other than the law of the State of
New York. Any judicial proceeding brought against any party hereto with respect to any of the Obligations, this Agreement, the
Other Documents or any related agreement may be brought in any court of competent jurisdiction in the State of New York, United
States of America, and, by execution and delivery of this Agreement, each party hereto accepts for itself and in connection with
its properties, generally and unconditionally, the non-exclusive jurisdiction of the aforesaid courts, and irrevocably agrees to
be bound by any judgment rendered thereby in connection with this Agreement. Each party hereto hereby waives personal service of
any and all process upon it and consents that all such service of process may be made by certified or registered mail (return receipt
requested) directed to such party or, in the case of any Borrower, to the Borrowing Agent at its address set forth in Section 16.6
and service so made shall be deemed completed five (5) days after the same shall have been so deposited in the mails of the United
States of America. Nothing herein shall affect the right to serve process in any manner permitted by Applicable Laws or shall limit
the right of Agent or any Lender to bring proceedings against any Borrower in the courts of any other jurisdiction. Each party
hereto waives any objection to jurisdiction and venue of any action instituted hereunder and shall not assert any defense based
on lack of jurisdiction or venue or based upon forum non conveniens. Each party hereto waives the right to remove any judicial
proceeding brought against such party in any state court to any federal court.

 

16.2.          Entire
Understanding.

 

(a)          This
Agreement and the documents executed concurrently herewith contain the entire understanding between each Borrower, Agent and each
Lender and supersedes all prior agreements and understandings (whether written or oral), if any, relating to the subject matter
hereof. Any promises, representations, warranties or guarantees not herein contained and hereinafter made shall have no force and
effect unless in writing, signed by each Borrower’s, Agent’s and each Lender’s respective officers. Neither this
Agreement nor any portion or provisions hereof may be changed, modified, amended, waived, supplemented, discharged, cancelled or
terminated orally or by any course of dealing, or in any manner other than by an agreement in writing, signed by the party to be
charged. Each party hereto acknowledges that it has been advised by counsel in connection with the execution of this Agreement
and Other Documents and is not relying upon oral representations or statements inconsistent with the terms and provisions of this
Agreement.

 

(b)          The
Required Lenders, Agent with the consent in writing of the Required Lenders, and Borrowers may, subject to the provisions of this
Section 16.2(b), from time to time enter into written supplemental agreements to this Agreement or the Other Documents executed
by Borrowers, for the purpose of adding or deleting any provisions or otherwise changing, varying or waiving in any manner the
rights of Lenders, Agent or Borrowers thereunder or the conditions, provisions or terms thereof or waiving any Event of Default
thereunder, but only to the extent specified in such written agreements; provided, however, that no such supplemental agreement
shall:

 

(i)          increase
the Commitment Percentage, or the maximum dollar amount of the Commitment Amount of any Lender without the consent of such Lender
directly affected thereby;

 

(ii)         whether
or not any Advances are outstanding, extend the Term or the time for payment of principal or interest of any Advance, or reduce
the principal amount of or the rate of interest borne by any Advances, without the consent of each Lender directly affected thereby
(except that Required Lenders may elect to waive or rescind any imposition of the Default Rate under Section 3.1);

 

    	60

    	 

    

 

(iii)        alter
the definition of the term Required Lenders or alter, amend or modify this Section 16.2(b) without the consent of all Lenders;

 

(iv)        alter,
amend or modify the provisions of Section 11.4 without the consent of all Lenders;

 

(v)         release
any Collateral during any calendar year (other than in accordance with the provisions of this Agreement) having an aggregate value
in excess of $50,000 without the consent of all Lenders;

 

(vi)        change
the rights and duties of Agent without the consent of the Agent and all Lenders; or

 

(vii)       release
any Borrower without the consent of all Lenders.

 

(c)          Any
such supplemental agreement shall apply equally to each Lender and shall be binding upon Borrowers, Lenders and Agent and all future
holders of the Obligations. In the case of any waiver, Borrowers, Agent and Lenders shall be restored to their former positions
and rights, and any Event of Default waived shall be deemed to be cured and not continuing, but no waiver of a specific Event of
Default shall extend to any subsequent Event of Default (whether or not the subsequent Event of Default is the same as the Event
of Default which was waived), or impair any right consequent thereon.

 

(d)          In
the event that Agent requests the consent of a Lender pursuant to this Section 16.2 and such consent is denied, then Borrowing
Agent or Agent may, at its option, require such Lender to assign its interest in the Advances to Agent or to another Lender or
to any other Person designated by Agent (the “Designated Lender”), for a price equal to (i) the then outstanding principal
amount thereof plus (ii) accrued and unpaid interest due such Lender, which interest shall be paid when collected from Borrowers.
In the event Borrowing Agent or Agent elects to require any Lender to assign its interest to Agent or to the Designated Lender,
Agent will so notify such Lender in writing within forty five (45) days following such Lender’s denial, and such Lender will
assign its interest to Agent or the Designated Lender no later than five (5) days following receipt of such notice pursuant to
a Commitment Transfer Supplement executed by such Lender, Agent or the Designated Lender, as appropriate, and Agent.

 

16.3.          Successors
and Assigns; Participations.

 

(a)          This
Agreement shall be binding upon and inure to the benefit of Borrowers, Agent, each Lender, all future holders of the Obligations
and their respective successors and assigns, except that no Borrower may assign or transfer all or any part of its rights or delegate
all or any part of its obligations under this Agreement without the prior written consent of Agent and each Lender.

 

    	61

    	 

    

 

(b)          Each
Lender may at any time and from time to time sell participating interests in the Advances to other Persons (each such transferee
or purchaser of a participating interest, a “Participant”). Each Participant may exercise all rights of payment (including
rights of set-off) with respect to the portion of such Advances held by it or other Obligations payable hereunder as fully as if
such Participant were the direct holder thereof provided that (i) Borrowers shall not be required to pay to any Participant more
than the amount which it would have been required to pay to Lender which granted an interest in its Advances or other Obligations
payable hereunder to such Participant had such Lender retained such interest in the Advances hereunder or other Obligations payable
hereunder unless the sale of the participation to such Participant is made with the Borrower’s prior written consent, and
(ii) in no event shall Borrowers be required to pay any such amount arising from the same circumstances and with respect to the
same Advances or other Obligations payable hereunder to both such Lender and such Participant.

 

(c)          Any
Lender, with the written consent of Agent and Borrowing Agent (which consent shall not be (i) unreasonably withheld or (ii) required
after the occurrence and during the continuation of an Event of Default), may sell, assign or transfer all or any part of its rights
or delegate all or any part of its obligations under or relating to Advances under this Agreement and the Other Documents to one
or more additional Persons and one or more additional Persons may commit to make Advances hereunder (each a “Purchasing Lender”
and together with each Participant, the “Transferees” and each a “Transferee”), in minimum amounts of not
less than $500,000, pursuant to a Commitment Transfer Supplement, executed by a Purchasing Lender, the transferor Lender, and Agent
and delivered to Agent for recording, provided, however, that each partial assignment shall be made as an assignment of a proportionate
part of all the assigning Lender's rights and obligations under this Agreement with respect to each of the Advances under this
Agreement in which such Lender has an interest. Upon such execution, delivery, acceptance and recording, from and after the transfer
effective date determined pursuant to such Commitment Transfer Supplement, (i) Purchasing Lender thereunder shall be a party hereto
and, to the extent provided in such Commitment Transfer Supplement, have the rights and obligations of a Lender thereunder with
a Commitment Percentage as set forth therein, and (ii) the transferor Lender thereunder shall, to the extent provided in such Commitment
Transfer Supplement, be released from its obligations under this Agreement, the Commitment Transfer Supplement creating a novation
for that purpose. Such Commitment Transfer Supplement shall be deemed to amend this Agreement to the extent, and only to the extent,
necessary to reflect the addition of such Purchasing Lender and the resulting adjustment of the Commitment Percentages, arising
from the purchase by such Purchasing Lender of all or a portion of the rights and obligations of such transferor Lender under this
Agreement and the Other Documents. Each Borrower hereby consents to the addition of such Purchasing Lender and the resulting adjustment
of the Commitment Percentages arising from the purchase by such Purchasing Lender of all or a portion of the rights and obligations
of such transferor Lender under this Agreement and the Other Documents. Borrowers shall execute and deliver such further documents
and do such further acts and things in order to effectuate the foregoing.

 

(d)          Agent
shall maintain at its address a copy of each Commitment Transfer Supplement delivered to it and a register (the “Register”)
for the recordation of the names and addresses of each Lender and the outstanding principal, accrued and unpaid interest and other
fees due hereunder. The entries in the Register shall be conclusive, in the absence of manifest error, and each Borrower, Agent
and Lenders may treat each Person whose name is recorded in the Register as the owner of the Advance recorded therein for the purposes
of this Agreement. The Register shall be available for inspection by Borrowing Agent or any Lender at any reasonable time and from
time to time upon reasonable prior notice.

 

    	62

    	 

    

 

(e)          Each
Borrower authorizes each Lender to disclose to any Transferee and any prospective Transferee any and all financial information
in such Lender’s possession concerning such Borrower which has been delivered to such Lender by or on behalf of such Borrower
pursuant to this Agreement or in connection with such Lender’s credit evaluation of such Borrower.

 

16.4.          Application
of Payments. Agent shall have the continuing and exclusive right to apply or reverse
and re-apply any payment and any and all proceeds of Collateral to any portion of the Obligations. To the extent that any Borrower
makes a payment or Agent or any Lender receives any payment or proceeds of the Collateral for any Borrower’s benefit, which
are subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, debtor
in possession, receiver, custodian or any other party under any bankruptcy law, common law or equitable cause, then, to such extent,
the Obligations or part thereof intended to be satisfied shall be revived and continue as if such payment or proceeds had not been
received by Agent or such Lender.

 

16.5.          Indemnity.
Each Borrower shall defend, protect, indemnify, pay and save harmless Agent, , each Lender and each of their respective officers,
directors, Affiliates, attorneys, employees and agents (each an “Indemnified Party”) for and from and against any and
all claims, demands, liabilities, obligations, losses, damages, penalties, fines, actions, judgments, suits, costs, charges, expenses
and disbursements of any kind or nature whatsoever (including fees and disbursements of counsel (including allocated costs of internal
counsel)) (collectively, “Claims”) which may be imposed on, incurred by, or asserted against any Indemnified Party
in arising out of or in any way relating to or as a consequence, direct or indirect, of: (i) this Agreement, the Other Documents,
the Advances and other Obligations and/or the transactions contemplated hereby including the Transactions, (ii) any action or failure
to act or action taken only after delay or the satisfaction of any conditions by any Indemnified Party in connection with and/or
relating to the negotiation, execution, delivery or administration of this Agreement and the Other Documents, the credit facilities
established hereunder and thereunder and/or the transactions contemplated hereby including the Transactions, (iii) any Borrower’s
failure to observe, perform or discharge any of its covenants, obligations, agreements or duties under or breach of any of the
representations or warranties made in this Agreement and the Other Documents, (iv) the enforcement of any of the rights and remedies
of Agent or any Lender under this Agreement and the Other Documents, and (v) any claim, litigation, proceeding or investigation
instituted or conducted by any Governmental Body or instrumentality or any other Person with respect to any aspect of, or any transaction
contemplated by, or referred to in, or any matter related to, this Agreement or the Other Documents, whether or not Agent or any
Lender is a party thereto. Without limiting the generality of any of the foregoing, each Borrower shall defend, protect, indemnify,
pay and save harmless each Indemnified Party from any Claims which may be imposed on, incurred by, or asserted against any Indemnified
Party under any Environmental Laws with respect to or in connection with the Real Property, any Hazardous Discharge, the presence
of any Hazardous Substances affecting the Real Property (whether or not the same originates or emerges from the Real Property or
any contiguous real estate), including any Claims consisting of or relating to the imposition or assertion of any Lien on any of
the Real Property under any Environmental Laws and any loss of value of the Real Property as a result of the foregoing except to
the extent such loss, liability, damage and expense is attributable to any Hazardous Discharge resulting from actions on the part
of Agent or any Lender. Borrowers’ obligations under this Section 16.5 shall arise upon the discovery of the presence of
any Hazardous Substances at the Real Property, whether or not any federal, state, or local environmental agency has taken or threatened
any action in connection with the presence of any Hazardous Substances, in each such case except to the extent that any of the
foregoing arises out of the willful misconduct of the Indemnified Party (as determined by a court of competent jurisdiction in
a final and non-appealable judgment). Without limiting the generality of the foregoing, this indemnity shall extend to any liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses and disbursements of any kind or nature whatsoever
(including fees and disbursements of counsel) asserted against or incurred by any of the Indemnified Parties by any Person under
any Environmental Laws or similar laws by reason of any Borrower’s or any other Person’s failure to comply with laws
applicable to solid or hazardous waste materials, including Hazardous Substances and Hazardous Waste, or other Toxic Substances.
Additionally, if any taxes (excluding taxes imposed upon or measured solely by the net income of Agent and Lenders, but including
any intangibles taxes, stamp tax, recording tax or franchise tax) shall be payable by Agent, Lenders or Borrowers on account of
the execution or delivery of this Agreement, or the execution, delivery, issuance or recording of any of the Other Documents, or
the creation or repayment of any of the Obligations hereunder, by reason of any Applicable Law now or hereafter in effect, Borrowers
will pay (or will promptly reimburse Agent and Lenders for payment of) all such taxes, including interest and penalties thereon,
and will indemnify and hold the Indemnified Parties harmless from and against all liability in connection therewith. 

 

    	63

    	 

    

 

16.6.          Notice.
Any notice or request hereunder may be given to Borrowing Agent or any Borrower or to Agent or any Lender at their respective addresses
set forth below or at such other address as may hereafter be specified in a notice designated as a notice of change of address
under this Section. Any notice, request, demand, direction or other communication (for purposes of this Section 16.6 only, a “Notice”)
to be given to or made upon any party hereto under any provision of this Agreement shall be given or made by telephone or in writing
(which includes by means of electronic transmission (i.e., “e-mail”) or facsimile transmission or by setting forth
such Notice on a website to which Borrowers are directed (an “Internet Posting”) if Notice of such Internet Posting
(including the information necessary to access such site) has previously been delivered to the applicable parties hereto by another
means set forth in this Section 16.6) in accordance with this Section 16.6. Any such Notice must be delivered to the applicable
parties hereto at the addresses and numbers set forth under below or in accordance with any subsequent unrevoked Notice from any
such party that is given in accordance with this Section 16.6:

 

		(a)	If to Agent at:

 

Parking Source LLC

1200 Brickell Avenue, Suite 1500

Miami, Florida 33131

Attention:      Harvey
Hernandez

Telephone:

Facsimile:

E-mail:

 

    	64

    	 

    

 

with a copy to:

 

Greenberg Traurig, P.A.

333 Avenue of the Americas (333
S.E. 2nd Avenue)

Miami, Florida 33131

Attention:      Andrew
E. Balog

Telephone:

Facsimile:

E-mail:

 

		(b)	If to a Lender other than Agent, as specified on the signature pages hereof

 

		(c)	If to Borrowing Agent or any Borrower:

 

Boomerang Systems, Inc.

30 B Vreeland Road

Florham Park, New Jersey 07932

Attention:      Chris
Mulvihill

Telephone:

Facsimile:

E-mail:

with a copy to:

 

Blank Rome LLP

The Chrysler Building

405 Lexington Avenue

New York, New York 10174

Attention:      Robert
J. Mittman

Telephone:

Facsimile:

E-mail:

 

Any Notice shall be effective:

 

(a)          In
the case of hand-delivery, when delivered;

 

(b)          If
given by mail, four days after such Notice is deposited with the United States Postal Service, with first-class postage prepaid,
return receipt requested;

 

(c)          In
the case of a telephonic Notice, when a party is contacted by telephone, if delivery of such telephonic Notice is confirmed no
later than the next Business Day by hand delivery, a facsimile or electronic transmission, a Internet Posting or an overnight courier
delivery of a confirmatory Notice (received at or before noon on such next Business Day);

 

(d)          In
the case of a facsimile transmission, when sent to the applicable party’s facsimile machine’s telephone number, if
the party sending such Notice receives confirmation of the delivery thereof from its own facsimile machine;

 

    	65

    	 

    

 

(e)          In
the case of electronic transmission, when actually received;

 

(f)          In
the case of an Internet Posting, upon delivery of a Notice of such posting (including the information necessary to access such
site) by another means set forth in this Section 16.6; and

 

(g)          If
given by any other means (including by overnight courier), when actually received.

 

Any Lender giving a Notice to Borrowing
Agent or any Borrower shall concurrently send a copy thereof to the Agent, and the Agent shall promptly notify the other Lenders
of its receipt of such Notice.

 

16.7.          Survival.
The obligations of Borrowers under Sections 3.4, 16.5 and 16.9 and the obligations of Lenders under Sections 14.8 and 16.5, shall
survive termination of this Agreement and the Other Documents and payment in full of the Obligations.

 

16.8.          Severability.
If any part of this Agreement is contrary to, prohibited by, or deemed invalid under Applicable Laws, such provision shall be inapplicable
and deemed omitted to the extent so contrary, prohibited or invalid, but the remainder hereof shall not be invalidated thereby
and shall be given effect so far as possible.

 

16.9.          Expenses.
The Borrowers shall pay (i) all reasonable out-of-pocket expenses incurred by the Agent (including the reasonable fees, charges
and disbursements of counsel for the Agent) in connection with the negotiation, execution, delivery and administration of this
Agreement and the Other Documents or any amendments, modifications or waivers of the provisions hereof or thereof (whether or not
the transactions contemplated hereby or thereby shall be consummated) and (ii) all reasonable out-of-pocket expenses incurred
by the Agent or any Lender (including the reasonable fees, charges and disbursements of any counsel for the Agent or any Lender)
in connection with the enforcement or protection of its rights (A) in connection with this Agreement and the Other Documents,
including its rights under this Section, or (B) in connection with the Advances made hereunder, including all such out-of-pocket
expenses incurred during any workout, restructuring or negotiations in respect of such Loans.

 

16.10.         Consequential
Damages. No party to this Agreement or any Other Document, nor any agent or attorney
for any of them, shall be liable to any other party to this Agreement or any Other Document (or any Affiliate of any such party),
for indirect, punitive, exemplary or consequential damages arising from any breach of contract, tort or other wrong relating to
the establishment, administration or collection of the Obligations or as a result of any transaction contemplated under this Agreement
or any Other Document.

 

16.11.         Captions.
The captions at various places in this Agreement are intended for convenience only and do not constitute and shall not be interpreted
as part of this Agreement.

 

    	66

    	 

    

 

16.12.         Counterparts;
Facsimile Signatures. This Agreement may be executed and delivered in any number of
and by different parties hereto on separate counterparts, all of which, when so executed and delivered, shall be deemed an original,
but all such counterparts shall constitute one and the same agreement. Any signature delivered by a party by facsimile or electronic
transmission (including email transmission of a PDF image) shall be deemed to be an original signature hereto.

 

16.13.         Construction.
The parties acknowledge that each party and its counsel have reviewed this Agreement and that the normal rule of construction to
the effect that any ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this
Agreement or any amendments, schedules or exhibits thereto.

 

16.14.         Confidentiality;
Sharing Information. Agent, each Lender and each Transferee shall hold all non-public
information obtained by Agent, such Lender or such Transferee pursuant to the requirements of this Agreement confidential; provided,
however, Agent, each Lender and each Transferee may disclose such confidential information (a) to its examiners, Affiliates, outside
auditors, counsel and other professional advisors, (b) to Agent, any Lender or to any prospective Transferees, (c) as required
or requested by any Governmental Body or representative thereof and (d) in connection with the enforcement of this Agreement or
any Other Documents, including, without limitation, the exercise of any remedies hereunder or thereunder; provided, further that
(i) unless specifically prohibited by Applicable Law, Agent, each Lender and each Transferee shall use its reasonable best efforts
prior to disclosure thereof, to notify the applicable Borrower of the applicable request for disclosure of such non-public information
by a Governmental Body or representative thereof and (ii) in no event shall Agent, any Lender or any Transferee be obligated to
return any materials furnished by any Borrower other than those documents and instruments in possession of Agent or any Lender
in order to perfect its Lien on the Collateral once the Obligations have been paid in full and this Agreement has been terminated.
Notwithstanding any non-disclosure agreement or similar document executed by Agent in favor of any Borrower or any of any Borrower’s
affiliates, the provisions of this Agreement shall supersede such agreements.

 

16.15.         Anti-Money
Laundering/International Trade Law Compliance. Each Borrower represents and warrants
to the Agent, as of the date of this Agreement, the date of each Advance, the date of any renewal, extension or modification of
this Agreement, and at all times until this Agreement has been terminated and all Obligations have been indefeasibly paid in full,
that: (a) no Covered Entity (i) is a Sanctioned Person; (ii) has any of its assets in a Sanctioned Country or in the possession,
custody or control of a Sanctioned Person; or (iii) does business in or with, or derives any of its operating income from investments
in or transactions with, any Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive enforced
by any Compliance Authority; (b) the Advances will not be used to fund any operations in, finance any investments or activities
in, or, make any payments to, a Sanctioned Country or Sanctioned Person in violation of any law, regulation, order or directive
enforced by any Compliance Authority; (c) the funds used to repay the Obligations are not derived from any unlawful activity; and
(d) each Covered Entity is in compliance with, and no Covered Entity engages in any dealings or transactions prohibited by, any
laws of the United States, including but not limited to any Anti-Terrorism Laws. The Borrowers covenant and agree that they shall
immediately notify the Agent in writing upon the occurrence of a Reportable Compliance Event.

 

    	67

    	 

    

 

16.16.         No
Fiduciary Duty. Agent, each Lender and their Affiliates may have economic interests
that conflict with those of the Borrowers, their stockholders and/or their Affiliates. Each Borrower agrees that nothing in this
Agreement or any of the Other Documents or otherwise shall be deemed to create an advisory, fiduciary or agency relationship or
fiduciary or other implied duty between any Lender, on the one hand, and such Borrower, its stockholders or Affiliates, on the
other. Each Borrower acknowledges and agrees that has consulted its own legal and financial advisors to the extent it deemed appropriate
and that it is responsible for making its own independent judgment with respect to this Agreement and the Other Documents. Each
Borrower agrees that it will not claim that any Lender has rendered advisory services of any nature or respect, or owes a fiduciary
or similar duty to such Borrower, in connection with this Agreement or any Other Documents. 

 

16.17.         Set-Off.
In addition to any rights now or hereafter granted under Applicable Laws and not by way of limitation of any such rights, upon
the occurrence of any Event of Default each Lender is hereby authorized by each Borrower at any time or from time to time subject
to the consent of the Agent (such consent not to be unreasonably withheld or delayed), without notice to any Borrower or to any
other Person (other than the Agent), any such notice being hereby expressly waived, to set off and to appropriate and to apply
any and all deposits (general or special, including Indebtedness evidenced by certificates of deposit, whether matured or unmatured,
but not including trust accounts) and any other Indebtedness at any time held or owing by such Lender to or for the credit or the
account of any Borrower against and on account of the obligations and liabilities of any Borrower to such Lender hereunder and
under the Other Documents, including all claims of any nature or description arising out of or connected hereto, or with any Other
Documents, irrespective of whether or not (a) such Lender shall have made any demand hereunder or (b) the principal of or the interest
on the Advances or any other amounts due hereunder shall have become due and payable hereunder and although such obligations and
liabilities, or any of them, may be contingent or unmatured. The rights of each Lender and its Affiliates under this Section 16.17
are in addition to other rights and remedies (including other rights of setoff) that such Lender may have.

 

    	68

    	 

    

 

Each of the parties has signed this Agreement
as of the day and year first above written.

 

	Borrowers:	BOOMERANG SYSTEMS, INC.
	 	 
	 	By:	/s/ Chris Mulvihill
	 	 	Chris Mulvihill
	 	 	President
	 	 
	 	BOOMERANG SUB, INC.
	 	 
	 	By:	/s/ Chris Mulvihill
	 	 	Chris Mulvihill
	 	 	President and Secretary
	 	 
	 	BOOMERANG USA CORP.
	 	 
	 	By:	/s/ Chris Mulvihill
	 	 	Chris Mulvihill
	 	 	President and Secretary
	 	 
	 	BOOMERANG MP HOLDINGS INC
	 	 
	 	By:	/s/ Chris Mulvihill
	 	 	Chris Mulvihill
	 	 	President and Secretary

 

[Signature Page to Loan and Security
Agreement]

 

    	S-1

    	 

    

 

	Agent and Lender:	PARKING SOURCE, LLC
	 	 
	 	By:	/s/ Harvey Hernandez
	 	 	Harvey Hernandez
	 	 	Manager
	 	 
	 	Commitment Percentage:  63.16%
	 	Commitment Amount:  $3,000,000

 

[Signature Page to Loan and Security
Agreement]

 

    	S-2

    	 

    

 

	Lender:	/s/Burton I. Koffman
	 	Burton I. Koffman
	 	 
	 	Commitment Percentage:  2.11%
	 	Commitment Amount: $100,000
	 	 
	Lender:	/s/ Milton Koffman
	 	Milton Koffman
	 	 
	 	Commitment Percentage:  2.11%
	 	Commitment Amount:  $100,000
	 	 
	Lender:	I A 545 MADISON ASSOC.
	 	 
	 	By:	/s/ Burton I. Koffman
	 	 	Burton I. Koffman
	 	 	Partner
	 	 
	 	Commitment Percentage:  1.58%
	 	Commitment Amount:  $75,000
	 	 
	Lender:	300 PLAZA DRIVE ASSOCIATES LLC
	 	 
	 	By:	/s/ Jeffrey Koffman
	 	 	Jeffrey Koffman
	 	 	Member
	 	 
	 	Commitment Percentage:  5.26%
	 	Commitment Amount:  $250,000
	 	 
	Lender:	DEERFIELD PLACE ASSOCIATES LLC
	 	 
	 	By:	/s/ Elizabeth M. Koffman
	 	 	Elizabeth M. Koffman
	 	 	Member
	 	 
	 	Commitment Percentage:  2.11%
	 	Commitment Amount:  $100,000

 

[Signature Page to Loan and Security
Agreement]

 

    	S-3

    	 

    

 

	Lender:	/s/ Steven Koffman
	 	Steven Koffman
	 	 
	 	Commitment Percentage:  2.63%
	 	Commitment Amount:  $125,000
	 	 
	Lender:	VULCAN PROPERTIES INC.
	 	 
	 	By:	/s/ Stanley Garber
	 	 	Stanley Garber
	 	 	Treasurer
	 	 
	 	Commitment Percentage:  1.05%
	 	Commitment Amount:  $50,000
	 	 
	Lender:	THE ESTATE OF GENE MULVIHILL
	 	 
	 	By:	/s/ Gail Mulvihill
	 	 	Gail Mulvihill
	 	 	Co-Administrator
	 	 
	 	Commitment Percentage:  10.53%
	 	Commitment Amount:  $500,000
	 	 
	Lender:	SUNSET MARATHON PARTNERS LLC
	 	 
	 	By:	/s/ James Mulvihill
	 	 	James Mulvihill
	 	 	Manager
	 	 
	 	Commitment Percentage:  5.26%
	 	Commitment Amount:  $250,000

 

[Signature Page to Loan and Security
Agreement]

 

    	S-4

    	 

    

 

	Lender:	MRP HOLDINGS, LLC
	 	 
	 	By:	/s/ Mark Patterson
	 	 	Mark Patterson
	 	 	Managing Member
	 	 
	 	Commitment Percentage:  2.11%
	 	Commitment Amount:  $100,000
	 	 
	Lender:	/s/ James Gelly
	 	James Gelly
	 	 
	 	Commitment Percentage:  2.11%
	 	Commitment Amount:  $100,000

 

[Signature Page to Loan and Security
Agreement]

 

    	S-5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00220-of-00352.parquet"}]]