Document:

Exhibit 10.1

 

SUPPLIER AGREEMENT

made on
May 20, 2019 [*DATE*]

 

Between

 

(1) POLAR POWER INC [*Supplier’s
full registered legal name*] (“Supplier”) of 249 E. GARDENA BLVD [*Supplier’s
full registered address*], a Delaware UNITED STATES [*Supplier’s
U.S. state or if not in U.S., country of incorporation*];

  

and

 

(2) Each and any of Citibank, N.A.,
its branches and subsidiaries and affiliates (“Citibank”).

 

BACKGROUND

 

WHEREAS, from time to time the Supplier
enters into commercial trade transactions with Buyers for the sale of goods and/or services resulting in Receivables owed by each
relevant Buyer to the Supplier. To facilitate the processing of such Receivables, Citibank, the Supplier and each relevant Buyer
intend to utilize one or more computerized/online settlement systems provided by Citibank or its affiliates or licensors.

 

WHEREAS, from time to time the Supplier
may wish to sell to Citibank and Citibank may wish to purchase from the Supplier and have assigned to Citibank, such Receivables
that are processed through the System, subject to the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the
mutual covenants, terms, conditions, representations and warranties contained herein, and other good and valuable consideration
the receipt and sufficiency of which is hereby acknowledged, the Supplier and Citibank agree as follows:

 

ARTICLE I: DEFINITIONS

 

For the purposes of this Agreement the
following terms shall, unless the context otherwise requires, have the following meanings:

 

“Agreement” means this
Supplier Agreement including Annex 1 (Pricing Schedule(s)), Annex 2 (License Schedule), Annex 3 and, if applicable, Annex 4 and
Annex 5, and any other Annexes added hereto from time to time upon the agreement of the Parties. each as amended from time to time.

 

“Anti Corruption Laws”
means all laws, rules, and regulations from time to time, as amended, concerning or relating to bribery or corruption, including,
without limitation, the U.S. Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and all other applicable anti-bribery
and corruption laws.

 

“Asset Representations”
means the representations and warranties of the Supplier set forth in Sections 4.2(a) - (d).

 

“Authorized Users” means
employees, agents or contractors of the Supplier whom it has designated as being authorized to access the System on its behalf
and who have been provided Logins to access the System by Citibank.

 

“Auto Discounting” has
the meaning set forth in Section 2.1.

 

“Business Day” means
any day (excluding Saturdays and Sundays) on which commercial banks are open for business (including dealings in foreign exchange
and foreign currency deposits) in the jurisdiction where the applicable Citibank entity is located and in the principal financial
center of each relevant currency.

“Buyer” means the Supplier’s
customer set forth on the Pricing Schedule(s) attached hereto, including all such customer’s subsidiaries and affiliates
that are obligors on the Receivables purchased by Citibank hereunder and any other customer of Supplier that Citibank and Supplier
agree to add to this Agreement as a “Buyer” by adding one or more Pricing Schedules hereto.

 

“Claim” means any abatement,
charge, claim, claw-back, counterclaim, defense, deferral, lien, netting, offset, reduction, recovery. set off right or withholding
or any other right, dispute or claim relating to carriage, damage, defects, delivery (including nondelivery, under or late delivery),
failure to meet the specifications, warranties or representations (whether express or implied), or any other failure of the Supplier
to comply with the terms of the contract under which the relevant goods or services were supplied to the relevant Buyer.

 

“Credit Note” means
information uploaded by the relevant Buyer in accordance with the System describing any Claim.

 

“Credit Note Amount”
means the amount specified in a Credit Note.

 

“Designated Account”
means the Supplier’s bank account identified in the set up form completed by the Supplier in order for Citibank to implement
the services contemplated in this Agreement.

 

“Discount Offer” and
“Discount Proceeds” have the meanings set forth in Section 2.1, and “Discount Charge” has
the meaning set forth in the relevant Pricing Schedule.

 

“License Schedule” means
the license schedule set out in Annex 2 hereto agreed to by the Supplier, which sets out the terms and conditions on which the
Supplier is entitled to use the System.

 

“Logins” means usernames
and passwords for Authorized Users to access the System;

 

“Losses” means any claims,
liabilities, losses, damages, costs or expenses, including reasonable attorneys’ fees and disbursements, other dispute resolution
expenses and costs of collection; provided that, and for the avoidance of doubt, the term “Losses” does not include
any credit related losses that may apply to a Receivable from time to time after it is sold under this Agreement.

 

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“Message” means any
message, information or instruction that is transmitted through the System, including any communication relating to a Transaction.

 

“Party” or “Parties”
means each or both of the Supplier or Citibank, as the context requires.

 

“Paying Agent” means
that particular Citibank entity acting as paying agent for Buyer from time to time under the Paying Services Agreement as set out
in the Pricing Schedule hereto.

 

“Paying Services Agreement”
means that certain Paying Services Agreement between Buyer and Paying Agent.

 

“Payment Amount” is
the face amount of Receivables due from a Buyer on the Payment Due Date, as set forth in the Payment Notification, less the sum
of any Credit Notes that have been uploaded into the System and have been applied against the Receivables prior to the date of
the relevant Discount Offer.

 

“Payment Due Date” means
the date payment by a Buyer of the Payment Amount is due as specified in the Payment Notification.

 

“Payment Notification”
means the notification sent by Citibank, in its capacity as Paying Agent, to the Supplier expressly or through the System, notifying
the Supplier that Buyer has instructed the Paying Agent to make payment from Buyer’s account of the Payment Amount on a specified
date.

 

“Person” shall mean
any individual, sole proprietorship, partnership, corporation, trust. association, limited liability company, limited liability
partnership, institution, public benefit corporation, joint venture, governmental body or any other entity.

 

“Pricing Schedule” means
the pricing schedule as Citibank will provide to the Supplier from time to time that sets out the method used to calculate the
Discount Charge and other fees and charges in respect of Receivables offered for sale hereunder. The initial Pricing Schedule is
set out in Annex 1 hereto and there may be different Pricing Schedules for different currencies, Buyer jurisdictions and/or Citibank
entities substantially in the form set out in Annex 1. The Pricing Schedule shall set out the particular Citibank entity acting
as purchaser of Receivables and the particular Citibank entity acting as Paying Agent under the relevant Paying Services Agreement
with Buyer.

 

“Receivables” means
the Supplier’s rights to receive payment from Buyers (or any parent or other affiliate thereof that has undertaken to make
payment) in respect of bona fide obligations of Buyers arising out of the Supplier’s sale and delivery of goods and services,
in each case as evidenced by an invoice (or similar document) and referenced in a Payment Notification.

 

“Sanctions” means economic,
trade, or financial sanctions, requirements, or embargoes imposed, administered, or enforced from time to time by any Sanctions
Authority.

 

“Sanctions Authority”
means the United States (including, without limitation, the Office of Foreign Assets Control of the U.S. Department of the Treasury
and the U.S. Department of State), the United Kingdom (including, without limitation, Her Majesty’ s Treasury), the European
Union and any EU member state, the United Nations Security Council and any other relevant sanctions authority.

“Sanctioned Jurisdiction”
means, at any time. a country or territory that is, or whose government is, the subject of Sanctions.

 

“Sanctioned Person”
means, at any time, (a) any Person listed in any Sanctions related list maintained by any Sanctions Authority, (b) any Person
located, organized, or resident in a Sanctioned Jurisdiction, or (c) any other subject of Sanctions, including, without limitation,
any Person controlled or 50 percent or more owned in the aggregate, directly or indirectly, by, or acting for or on behalf of,
or at the direction of, any such Person or Persons described in the foregoing clauses (a) or (b).

 

“Software” means all
software, programming or object code provided by or on behalf of Citibank to Supplier for utilizing a computer or like device to
use the System.

 

“System” means the computerized/online settlement system(s), including related services, equipment and software, to facilitate the processing of Receivables,
and payments made with respect thereto.

 

“Transaction” means
a trade/supplier finance transaction permitted by this Agreement, transacted over or using the System.

 

“U.S. Person” means
a Person incorporated or organized under the laws of the United States of America, any State thereof, the District of Columbia
or Puerto Rico.

 

ARTICLE II: RECEIVABLES SALE AND PURCHASE

 

2.1 Discount Offer. Upon receipt
of a Payment Notification, the Supplier is deemed to

 

CHECK ONE BOX BELOW:

 

☐ automatically, or

 

☒ at its option (and in accordance with
the System)

 

offer to sell to Citibank the Receivables
(a “Discount Offer”) evidenced by such Payment Notification as notified whether expressly or shown on the System,
at a price (the “Discount Proceeds”) equal to the face amount of the Receivables less the sum of any Credit
Notes that have been uploaded prior to the date of the Discount Offer to and shown in the System and have been applied against
the Receivables as specified in the Payment Notification, less the applicable Discount Charge and other fees and charges (as further
described in Article III and the relevant Pricing Schedule).

 

Where the Supplier has agreed to offer
to sell the Receivables to Citibank automatically under Section 2.1 (an “Auto Discounting”), the Supplier must
submit an Auto Discounting Request to Citibank substantially in the form set out in Annex 3. The Supplier may cancel such Auto
Discounting at any time on the giving of notice to Citibank and such Auto Discounting shall cease 5 Business Days after the receipt
of such notice by Citibank. Citibank may cancel any Auto Discounting at any time upon written notice to the Supplier.

 

2.2 Discount Acceptance. Citibank,
at its option, may accept the Discount Offer by purchasing the offered Receivable on or before the relevant Payment Due Date,
by depositing the Discount Proceeds therefor in the Designated Account.

 

2.3 Discount Rejection. If Citibank
has not deposited the Discount Proceeds with respect to an offered Receivable on or prior to the Payment Due Date, the Discount
Offer shall be deemed not accepted by Citibank and rescinded by the Supplier, in which case the Paying Agent will make payment
on the Buyer’s behalf to the Designated Account on the Payment Due Date (to the extent sufficient funds are provided for
by the relevant Buyer, as set out in Section 2.5).

 

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2.4 Receivables Purchase.

 

(a) The Supplier hereby agrees that,
simultaneously with Citibank’s deposit in the Designated Account of the Discount Proceeds set forth in the Discount Offer prior
to the Payment Due Date, the Supplier (i) shall have sold or transferred to Citibank all of the Supplier’s present and future right,
title and interest in, to and under the Receivables to which such Discount Offer relates, and (ii) be deemed to have provided notice
to the Paying Agent of the Supplier’s designation of Citibank as the entity to receive payment of the amount specified in the Payment
Notification with respect to such Receivables. No further writing shall be necessary to evidence such transfer of ownership. Notwithstanding
the foregoing, the Supplier (i) agrees to sign all such other documents, and take all such further actions, as Citibank may reasonably
request from time to time to evidence this transfer of ownership; and (ii) irrevocably and unconditionally authorizes Citibank,
in Citibank’s name or on behalf of the Supplier, to notify the Buyer of the transfer of the Receivables by email or otherwise at
any time or from time to time.

 

(b) The Supplier hereby agrees that
its obligations under this Agreement and any Discount Offers issued by it shall not be affected by the invalidity, unenforceability,
existence, performance or non-performance by the Supplier or Buyer (including partial payment, non-payment or late payment) of
the relevant underlying transaction, which (and any liability for which) shall be between the Supplier and the relevant Buyer only.

 

(c) It is the intention of the Supplier
and Citibank that each purchase and sale of Receivables pursuant to this Article II shall constitute a true sale which shall have
the effect of the Supplier as legal and beneficial owner assigning absolutely with full title guarantee the Receivables to Citibank.
Such sale will be absolute and irrevocable and provide Citibank with the full benefits and burdens of ownership of such Receivables.
The sale of Receivables hereunder is made without recourse to the Supplier, except in the case of a breach by the Supplier of any
Asset Representation with respect to any Receivable; provided, however, that such sale does not constitute and is not intended
to result in an assumption by Citibank of any obligation of the Supplier or any other Person arising in connection with the Receivables
or any other obligations of the Supplier.

 

(d) In the event that,
contrary to the mutual intent of the parties, a court of competent jurisdiction determines that the transactions contemplated
hereby constitute a loan rather than a purchase and sale, (i) the Supplier shall, effective as of the date hereof, be deemed
to have granted to Citibank (and the Supplier hereby does grant to Citibank) a first priority security interest in and to any
and all present and future Receivables and the proceeds thereof, collectively, to secure the repayment on demand of all
amounts paid by Citibank hereunder and all other amounts due or to become due hereunder from the Supplier and all amounts
payable hereunder by a Buyer, and (ii) this Agreement shall be deemed to be a security agreement. With respect to such grant
of security interests, Citibank may, at its sole and absolute option, exercise from time to time any and all rights and
remedies available to it hereunder, under the UCC or otherwise.

2.5 Collection Option. In the case
of any Payment Notification as to which (i) Citibank is deemed not to have accepted a Discount Offer for the purchase of the related
Receivables or (ii) the Supplier has chosen not to sell the related Receivables to Citibank, Supplier acknowledges and agrees that
the Paying Agent shall have no obligation to make the payment specified in the Payment Notification unless the Paying Agent has
received sufficient funds from the Buyer. If the Paying Agent makes such payment before such receipt, the Paying Agent may reverse
all or part of such payment, make an appropriate entry to the Designated Account (if applicable) and require repayment of an amount
corresponding to each payment.

 

2.6 Discharge. The Supplier confirms
to Citibank in Citibank’s capacity as purchaser of a Receivable (and for the benefit of the applicable Buyer) that Citibank’s deposit
of the Discount Proceeds in the Designated Account in accordance with Section 2.4(a) shall be deemed to satisfy Buyer’s obligation
to pay Supplier the face amount of such Receivable less the sum of any associated Credit Notes uploaded prior to the date of the
Discount Offer. The Supplier also confirms to Citibank in Citibank’s capacity as Paying Agent on a Receivable (and for the benefit
of the applicable Buyer) that Citibank’s deposit of the Payment Amount in the Designated Account in accordance with Sections 2.3
and 2.5 shall be deemed to satisfy Buyer’s obligation to pay Supplier the face amount of such Receivable less the sum of any associated
Credit Notes. Supplier acknowledges and agrees that (i) resolution of any Claims set forth in any Credit Notes and (ii) any payment
obligations of either party under the commercial contract between Buyer and Supplier (other than the Buyer’s obligation to pay
the face amount of a Receivable less the sum of any associated Credit Notes), are beyond the scope of this Agreement and are unaffected
hereby.

 

2.7 Change of System. Citibank may
from time to time elect (in its sole discretion) to replace the current System with an alternative System. Citibank shall give
the Supplier reasonable notice of the proposed replacement. The Supplier’s ability to use the replacement System may be conditioned
on the execution of License Agreement in respect of the replacement System by the Supplier and each relevant Buyer.

 

ARTICLE III: FEES, CHARGES AND TAXES

 

3.1 Fees and Charges. From time
to time, Citibank will provide to the Supplier the Pricing Schedule that (i) discloses all processing, licensing or other fees
or charges (including any document examination or other processing charges applicable to an associated open account servicing relationship
established for Buyer, if applicable) (ii) describes the method used to calculate the applicable Discount Charge and (iii) sets
the effective period (and any renewal periods) with respect thereto. Citibank’s determination whether to purchase Receivables owed
by a particular Buyer shall be subject to the terms of the relevant Pricing Schedule. Each Pricing Schedule shall be valid from
the effective date specified therein unless changed by Citibank in its sole discretion at any time upon reasonable notice to the
Supplier. Any changes to the Pricing Schedule (as permitted therein) shall not affect the Discount Charge applicable to any Receivables
previously purchased by Citi or any Discount Offer then outstanding.

 

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3.2 Taxes. The Supplier
shall pay, and indemnify and hold Citibank harmless from and against, any taxes that may at any time be asserted in respect of
the purchase transactions hereunder (including any sales, occupational, excise, gross receipts, personal property, privilege or
license taxes, stamp duties or any withholdings (“Taxes”), but not including taxes imposed upon Citibank with
respect to its overall net income) and costs, expenses and reasonable counsel fees in defending against the same, whether arising
by reason of the acts to be performed by the Supplier hereunder or otherwise. If the Supplier shall be required by law to deduct
any Taxes from or in respect of any sum payable hereunder (i) the sum payable shall be increased as may be necessary so that,
after making all required deductions (including deductions applicable to additional sums payable under this paragraph), Citibank
receives an amount equal to the sum it would have received had no such deductions been made, (ii) the Supplier shall make such
deductions and (iii) the Supplier shall pay the full amount deducted to the relevant taxation authority or other authority in
accordance with applicable law.

 

ARTICLE IV: REPRESENTATIONS, WARRANTIES AND COVENANTS

 

4.1 Mutual Representations
and Warranties of the Parties. Each of the Supplier and Citibank represents and warrants as follows: (i) it is validly existing
and in good standing and has the power to enter into and perform, and has all necessary authorizations for the entry into, performance
and delivery of, this Agreement and the transactions contemplated by this Agreement; (ii) this Agreement constitutes its legal,
valid and binding obligation, enforceable in accordance with the Agreement’s terms; and (iii) its execution, delivery and performance
of this Agreement does not contravene its constitutive documents or any contract binding on or affecting it or any of its properties,
does not violate any applicable law, regulation or order, and does not require any notice, filing or other action to or by any
governmental authority.

 

4.2 Supplier Representations
and Warranties. The Supplier hereby agrees that, by entering into this Agreement, the Supplier will be deemed to have made
the representations and warranties under Section 4.1, and each of the following representations and warranties, both as of the
date of each Discount Offer and as of the date any such Discount Offer is accepted by Citibank pursuant to Section 2.2:

 

(a) Each such Receivable (i)
is the exclusive property of the Supplier, free and clear of all security interests, liens or claims of any kind; (ii) relates
exclusively to a commercial trade transaction and represents consideration for a sale of goods or services that (A) have been
delivered to and accepted by the relevant Buyer in the ordinary course of business, (B) in relation to which all of the Supplier’s
obligations have been performed by it in full, and (C) which complies with all applicable legal requirements; (iii) constitutes
a valid, binding and unconditional obligation of the relevant Buyer to pay the full amount of such Receivable, free of any defense,
set-off or counterclaim (other than any Claim); (iv) is not disputed by Buyer or any other Person, and is not the subject of any
legal or arbitral proceeding; (v) does not have a Payment Due Date falling more than 180 days after the date it is purchased by
Citibank pursuant to Section 2.2; and (vi) is freely assignable or transferable (as applicable) and the provisions of this Agreement
are effective to assign or transfer (as applicable) the relevant Receivable to Citibank.

(b) On the date hereof
and at the time of each sale of Receivables hereunder, the Supplier (i) is not and will not be insolvent or unable to pay its
debts (including subordinated and contingent debts), nor could it be deemed by a court to be unable to pay its debts, all
within the meaning of the law in the jurisdiction of its organization, nor will it become so in consequence of its entering
into this Agreement and/or its sale of Receivables to Citibank hereunder and (ii) is not and will not be an affiliate of any
Buyer.

 

(c) The Supplier and any subsidiaries
are conducting and will continue to conduct their business in compliance with Anti-Corruption Laws. The Supplier and any subsidiaries
have implemented, maintain, and will continue to maintain in effect policies and procedures to ensure compliance by the Supplier,
any subsidiaries, and their respective directors, officers, employees, and agents, with Anti-Corruption Laws. None of the Supplier
or any of its parents or subsidiaries, or any of their respective directors, officers, or employees, or to the knowledge of the
Supplier, the affiliates or agents of the Supplier or any of their subsidiaries, is a Sanctioned Person, or located, organized,
or resident in a Sanctioned Jurisdiction.

 

(d) The operations of the Supplier and
any subsidiaries are and have been conducted at all times in compliance with applicable financial recordkeeping and reporting requirements,
as amended, the applicable money laundering statutes of all jurisdictions where the Supplier or any subsidiaries conduct business,
the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced
by any governmental or regulatory agency (collectively, the “Anti-Money Laundering Laws”), and no action, suit or proceeding
by or before any court or governmental agency, authority or body or any arbitrator involving the Supplier or any subsidiaries with
respect to the Anti-Money Laundering Laws is pending or, to the knowledge of the Supplier, threatened.

 

(e) If the Supplier provides Citibank with
personal data about itself or its Authorized Users, (including without limitation through the use of cookies,) the Supplier warrants
that such data has been given with the consent of each individual and in compliance with any applicable personal data protection
and privacy legislation, such that the data may be processed or transmitted by and to Citibank and its contractors in any country
of the world in connection with this Agreement. The Supplier consents to the disclosure by Citibank of such data to Buyers to the
extent such data is needed in connection with the delivery of any Payment Notification.

 

4.3 Supplier Covenants.
The Supplier hereby covenants and agrees with Citibank as follows:

 

(a) The Supplier shall use the System solely
to settle genuine and lawful commercial trade transactions, arising in the ordinary course of business, for the sale and purchase
of goods or services between the Supplier and Buyers.

 

(b) Supplier shall
comply with all relevant laws and regulations applicable to this Agreement, the Receivables and transactions conducted using
the System including, without limitation, all applicable export control laws, and shall keep its state or other place of
incorporation or organization and the office where it keeps its records concerning the Receivables at the address referred to
in Section 5.9. The Supplier shall timely and fully perform and comply with all material provisions required to be observed
by it under the contracts related to the Receivables and promptly inform Citibank of any breach or default by the Supplier or
any Buyer of any of the terms thereof.

 

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(c) The Supplier shall (a) at
the request of Citibank, execute any such documents and do all acts and things as may be, in the opinion of Citibank, reasonably
necessary to protect Citibank’s rights and benefits in respect of this Agreement and/or to confer to Citibank all rights, title
and interest of the Supplier in respect of any Receivable purchased by Citibank and (b) maintain and implement administrative and
operating procedures and keep and maintain all documents, books, records and other information (including without limitation the
relevant supply contract and shipping documents) reasonably necessary or advisable for the collection of all Receivables purchased
by Citibank or in order to comply with applicable laws and regulations and provide copies of such records and documentation to
Citibank promptly on request. The Supplier shall retain each record required to be maintained under this Section 4.3(c) for at
least the longer of (i) the term of this Agreement or (ii) as may be required by applicable law or regulation.

 

(d) The Supplier shall not,
at any time after making a Discount Offer to Citibank, sell or otherwise dispose of or permit any encumbrance on the Receivables
offered to or purchased by Citibank other than Citibank’s interest therein.

 

(e) The Supplier hereby
irrevocably authorizes Citibank, in its sole discretion, to file one or more financing statements (and other similar
instruments) and amendments thereto and, if the Supplier is not a U.S. Person, any other notice, registration, document or
instrument required under the laws of the Supplier’s jurisdiction of organization, and to take any other action, relative to
all or any part of the Receivables purchased by Citibank, without the signature of the Supplier, to the extent permitted by
applicable law, in each case as may be necessary or appropriate in order to perfect and maintain the perfection of Citibank’s
ownership of and security interest in such Receivables. If not so permitted by applicable law, or in such other circumstances
as Citibank may reasonably request, the Supplier will execute and file any such financing statements and amendments thereto,
and such other notices, registrations, documents and instruments, and will take any other required action, as may be
necessary or appropriate to perfect and maintain the perfection of Citibank’s ownership and security interest in such
Receivables. If the Supplier is a U.S. Person, the Supplier shall not (i) change its location (as defined in Section 9-307 of
the New York UCC) or (ii) change its name from its current legal name without providing Citibank at least 30 Business Days
prior written notice.

 

(f) The Supplier will mark its
computer records relating to any Receivables purchased by Citibank with a legend evidencing that Citibank has purchased such receivables.

 

(g) The Supplier shall immediately
notify Citibank if it ever becomes or believes it is likely to become a subsidiary or affiliate of any Buyer.

(h) None of the Supplier
or any of its parents or subsidiaries, or any of their respective directors, officers, or employees, or to the knowledge of
the Supplier, the affiliates or agents of the Suppliers or any of their subsidiaries, will, directly or indirectly, use any
part of the Discount Proceeds, or lend, contribute, or otherwise make available such proceeds (i) to fund or facilitate any
activities or business of or with any Person that, at the time of such funding or facilitation, is a Sanctioned Person, (ii)
to fund or facilitate any activities or business of or in any Sanctioned Jurisdiction, (iii) in any manner that would result
in a violation by any Person of Sanctions, or (iv) in violation of applicable law, including, without limitation,
Anti-Corruption Laws. None of the execution, delivery, or performance of this Agreement, or any activities, transactions,
services, or security interest contemplated by this Agreement, would result in a violation of Sanctions by Citibank.

 

ARTICLE V: MISCELLANEOUS

 

5.1 Waivers; Severability. No delay
or failure of any Party hereto in exercising any right, privilege or option under this Agreement shall operate as a waiver of such
or of any other right, privilege, or option. If any provision of this Agreement is or becomes illegal or invalid under any applicable
law, the validity of the remaining provisions shall not be affected thereby.

 

5.2 Limitation on Liability.

 

(a) Citibank shall be entitled to rely
on any communication sent or purported to be sent by the Supplier, irrespective of any error or fraud contained in the communication
or the identity of the individual who sent the communication, and shall not be liable for any action taken or omitted in reliance
on any notice, direction, consent, certificate, affidavit, statement, designation or other paper or document reasonably believed
by it to be genuine and to have been duly and properly signed or presented to it by the Supplier.

 

(b) Except for liabilities to third parties
relating to defense and indemnification obligations hereunder, neither Party shall be liable to the other Party or responsible
for any loss of business or profits, revenue or goodwill, or any indirect or consequential, special, exemplary or punitive losses
or damages, whether arising from negligence, breach of contract or otherwise, even if informed of the possibility of those losses
or damages.

 

(c) Citibank shall not be liable for any
Losses arising out of or relating to any of its actions or omissions to act hereunder, except to the extent that any such Losses
are caused by Citibank’s gross negligence or willful misconduct.

 

(d) Notwithstanding anything contained
in this Agreement, Citibank shall not be obligated to accept or take any action in respect of any Receivable which Citibank believes
could breach any applicable law, rule, regulation, sanction or internal policy applicable to it.

 

5.3 No Implied Duties or Warranties.
Citibank shall be obliged to perform such duties and only such duties as are specifically set forth herein, and no implied duties
or responsibilities shall be read or implied into this Agreement against Citibank. Notwithstanding any other provision elsewhere
contained in this Agreement, Citibank shall have no duties or obligations hereunder to any Person or entity other than the Supplier
and, without limiting the foregoing, does not hereby assume any obligation or relationship of agency or trust hereunder for, or
with, the Supplier, Buyers, or any other Persons.

 

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5.4 Confidentiality.

 

(a) Each Party agrees to maintain
the confidentiality of any Confidential Information (as defined below) of the other Party to which it has access under the System
or otherwise under this Agreement, and to use such Confidential Information only for the purposes of exercising its rights and
performing its obligations under this Agreement, and not for its own personal gain or benefit. “Confidential Information”
shall mean information of a Party that the other Party knows or reasonably should know to be confidential to such first Party.

 

(b) Notwithstanding the foregoing,
either Party may disclose Confidential Information obtained from the other Party (i) to any authority of competent jurisdiction
pursuant to legal process or pursuant to any other foreign or domestic legal and/or regulatory obligation or request, including
disclosure to courts, tribunals, and/or legal, regulatory, tax and governmental authorities; (ii) to its subsidiaries and affiliates;
(iii) to its professional advisors, auditors and service providers; and (iv) subject to Section 5.6 hereof, to any Person to (or
through) whom Citibank sells, assigns or transfers (or may potentially assign or transfer) all or any of its rights and obligations
under this Agreement or any Receivables, or to a counterparty in (x) a securitization or similar transaction in relation to which
any Receivables or this Agreement forms a part of the asset pool or collateral pool, (y) a sub-participation in relation to any
Receivables or this Agreement, or (z) any other transaction (including credit derivative transactions) under which payments are
to be made by reference to any Receivables or this Agreement. In addition, Citibank may, from time to time at Buyer’s request,
provide Buyer with information as to discounting volumes without violating this Section 5.4(b) or any other confidentiality provisions
herein.

 

5.5 Indemnity. The Supplier
shall defend, indemnify and hold harmless Citibank and its affiliates, employees, directors, officers, and agents (each, an “indemnified
party”), from and against all Losses, including, without limitation, Losses arising out of or in any way relating to (i) any
breach of the Supplier’s obligations under this Agreement, including any representations under Article IV being untrue or inaccurate,
(ii) Citibank’s reliance on any Message sent or purported to be sent by the Supplier using the System, (iii) any Claim or any other
dispute with respect to the commercial transaction giving rise to any Receivable, or (iv) any claim that any Message or other material
transmitted or uploaded onto the System by the Supplier infringes or misappropriates any third party intellectual property rights,
except to the extent that such Losses are caused by the gross negligence or willful misconduct of such indemnified party.

 

5.6 Assignment. This
Agreement shall bind and inure to the benefit of the respective successors, permitted assigns and transferees of each of the Parties;
provided, however, that the Supplier may not assign or transfer any of its rights or obligations hereunder without Citibank’s prior
written consent, given in its sole discretion. Citibank shall have the right without the consent of or notice to the Supplier to
sell, transfer, assign, or grant participations in the Receivables purchased by Citibank and all or any part of, or any interest
in, Citibank’s obligations, rights and benefits hereunder.

 

5.7 Termination.
Either Party may terminate this Agreement for any reason upon thirty Business Days prior written notice to the other Party.
Either Party may terminate this Agreement upon five Business Days prior written notice if the other Party is in breach of, or
fails to perform any of its material obligations under, this Agreement; provided that with respect to any breach of
4.2(c) or (d), Citibank may terminate this Agreement with immediate effect. Upon notice of termination, the Supplier shall no
longer issue Discount Offers to Citibank and Citibank will no longer accept Discount Offers from the Supplier. Upon such
termination Citibank will disable any Logins relating to the Supplier and its Authorized Users.

5.8 Survival. All covenants made
herein shall continue in full force and effect so long as any purchased Receivable remains outstanding. All confidentiality, security
and indemnity obligations and all limitation of liability provisions contained in this Agreement shall survive and remain in full
force and effect notwithstanding termination of this Agreement.

 

5.9 Notices. Except as otherwise
expressly contemplated herein, all notices pursuant to this Agreement shall be in writing, duly signed by the Party giving such
notice, and shall be delivered, emailed, faxed or mailed to the address set forth under the relevant Party’s signature line hereto.
All notices or other communications shall be deemed to have been received: (a) if sent by fax with a confirmed receipt of transmission
from the receiving fax machine, on the day on which it was transmitted; (b) in the case of a notice given by hand, on the day of
actual delivery; (c) if sent by mail, 5 Business Days after being deposited in the mail with first class prepaid postage; or (d)
if sent by e-mail, on the date of sending; provided that a notice given in accordance with the above but received on a day
which is not a Business Day or after normal business hours in the place of receipt shall he deemed to have been received on the
next Business Day.

 

5.10 Entire Agreement; No Third Party
Beneficiaries; Amendments; Additional Citibank Entities (a) This Agreement embodies the entire agreement between the Supplier
and Citibank relating to the subject matter hereof, and supersedes all prior agreements relating to this subject matter. (b) This
Agreement shall not be construed to confer any right, benefit, remedy or claim upon any Person other than the Supplier and Citibank
and their respective successors and permitted assigns. This Agreement may be amended by the Parties at any time. All amendments
and waivers to this Agreement must be in writing and signed by or on behalf of each of the Parties. The Parties agree that any
Citibank branch, subsidiary or affiliate may become a party to this Agreement (and assume the rights and obligations of “Citibank”)
as if it were an original party hereto subject to Citibank notifying the Supplier with a confirmation signed by (or on behalf of)
such entity along with the delivery of any applicable Pricing Schedules.

 

5.11 Business Days. Any amounts
which but for this Section 5.11 would fall due for payment by Citibank on a day other than a Business Day shall be payable on the
succeeding Business Day.

 

5.12 Calculations. All calculations
and determinations made by Citibank in connection with this Agreement (including any calculations or determinations set out in
any demand on the Supplier) shall be conclusive in the absence of manifest error.

 

5.13 Execution.
This Agreement may be either physically signed (in any number of counterparts, which taken together shall constitute a single
copy of this Agreement), or, in the event that this Agreement is viewed on a website, by the acceptance of such terms as
shown by a click on an “I Accept” button or similar label. Any signature delivered by facsimile or by email in
“pdf” or similar format shall be deemed an original signature hereto. In addition, any electronic signature or other
form of acceptance other than physical signature shall be deemed to be a physical signature.

 

    Page 6 of 14

     

    

 

5.14 Governing Law and
Jurisdiction. This Agreement is governed by the laws of the State of New York. The Parties agree that any New York State court
or Federal court sitting in New York City or an appellate court having appellate jurisdiction over such courts shall have non-exclusive
jurisdiction to hear and determine or settle any suits, litigation or other proceedings or disputes in connection with this Agreement,
and submit to the jurisdiction of those courts. Each Party waives: (i) any right to immunity from jurisdiction to which it may
be entitled (including, to the extent applicable, immunity from pre-judgment attachment and post judgment attachment and execution)
and (ii) any objection to venue or any claim of inconvenience in connection with a proceeding brought in such a court. Without
prejudice to any other mode of service allowed under any relevant law, upon Citibank’s request the Supplier shall immediately
(and in any event within five (5) Business Days), appoint an agent for service of process in New York (on terms acceptable to
Citibank) in connection with this Agreement. If the Supplier fails to appoint an agent upon Citibank’s request, Citibank
is authorized to appoint such agent as it may choose in its sole discretion for this purpose. Citibank shall notify the Supplier
of any appointment it makes pursuant to this clause 5.14. In the event that Citibank makes such appointment, the Supplier may
replace such process agent appointed by Citibank with prior written notice to Citibank; provided that any service of process that
occurs before such notice of replacement shall be effective when served to the process agent appointed by Citibank]* The Supplier
agrees that nothing in this Agreement shall affect Citibank’s right to serve process in any other manner permitted by law
(including pursuant to the rules for foreign service of process authorized by the Hague Convention) or to commence legal proceedings
or otherwise proceed against the Supplier in any other jurisdiction, and that failure by a process agent to notify the Supplier
of the process will not invalidate the proceedings concerned. The Supplier agrees that nothing in this Agreement shall affect
Citibank’s right to serve process in any other manner permitted by law or to commence legal proceedings or otherwise proceed
against the Supplier in any other jurisdiction. The Supplier agrees that final judgment against it in any action or proceeding
shall be enforceable in any other jurisdiction by suit on the judgment, a certified copy of which shall be conclusive evidence
of the judgment, and any recovery by Citibank pursuant to any judgment that is expressed in or converted into any currency other
than U.S. Dollars, shall not discharge the obligation except to the extent that such recovery results in the actual receipt by
Citibank in New York of the full amount of U.S. Dollars owed.

 

5.15 Annex 4 Override.
The provisions of Annex 4 shall apply to this Agreement and if there is any inconsistency between the other provisions of this
Agreement and the provisions in Annex 4, the latter shall prevail to the extent of the inconsistency.

 

5.16 WAIVER OF JURY TRIAL.
THE PARTIES WAIVE ANY RIGHTS THEY MAY HAVE TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED ON OR ARISING FROM THIS AGREEMENT.

5.17 Declaration.
The Supplier confirms that it has received independent legal, tax and accounting advice in relation to the transactions
contemplated by this Agreement. The Supplier confirms that it has not relied on any representation of Citibank in this
regard.

 

5.18 Service Providers. Citibank
is permitted to: (i) utilize service providers (which may be affiliates of Citibank or selected third parties) to assist with the
processing of and/or to facilitate the transactions contemplated in this Agreement, and (ii) disclose information received by Citibank
in connection thereof to such service providers on a confidential basis.

 

[Remainder of page intentionally left blank]

 

 

		*	Supplier can choose which option it prefers on this point

 

    Page 7 of 14

     

    

 

IN WITNESS WHEREOF, each of the Parties hereto has executed
this Agreement as of the date and year first written above.

 

	POLAR POWER INC	 	     
	(Supplier’s
    full registered legal name)	 	for
    and on behalf of Citibanks
	 	 	 
	By:	/s/
    Luis Zavala	 	By:	/s/
    Sally-Ann Gordon
	 	(Signature)	 	 	(Signature)
	Name (printed): 	LUIS
    ZAVALA	  	Name (printed): 	Sally-Ann
    Gordon
	Title: 	CFO	 	Title:	Vice President
	Date: 	May 20, 2019	 	Date:	June 4, 2019

 

	Supplier
    Name: 	POLAR
    POWER INC	 	Citibank
    entity: 	Citibank
    N.A.
	 	 	 	 	 
	Attention:	LUIS ZAVALA	 	Attention:	Vasilios Kontogianis
	Address:	249 E. GARDENA BLVD GARDENA,	 	Address:	388 Greenwich Street, 25th
	 	CALIFORNIA, UNITED STATES	 	 	New York, NY
	Email:	lzavala@polarpowerinc.com	 	Email:	vasilios.kontogianis@citi.com
	Phone:	(310) 830-9153 x 4117	 	Phone:	212-816-7096
	Fax:	(310) 719-2385	 	Fax:	1-866-443-2352

    

Note: The above address details are those referred
to in Section 5.9.

  

	 	 	 	Citibank entity: 	Citibank Europe PLC
	 	 	 	 	 
	 	 	 	Attention:	 
	 	 	 	Address:	I North Wall Quay
	 	 	 	 	Dublin 1, Ireland
	 	 	 	Email:	 
	 	 	 	Phone:	+353 (01) 622 6151
	 	 	 	Fax:	+353 (01) 622 2741

 

    Page 8 of 14

     

    

 

CERTIFICATE OF INCUMBENCY AND AUTHORITY

 

INSTRUCTIONS

 

Note 1: In the case of Sole Proprietors, the
COIA is not required.

 

Note 2: If you have your own Certificate
of Incumbency, please provide in lieu of the attached.

 

CERTIFICATE OF INCUMBENCY AND AUTHORITY

 

		1.	Enter your Legal Company Name under name of Supplier wherever
it appears.

 

		2.	Provide actual date that the Supplier Agreement is signed.

 

		3.	Please note the title of the party who will be certifying
the agreement. This should be the Corporate Secretary.

 

		4.	Input Authorized officers’ names, email addresses
and phone numbers and have them sign in the appropriate slot. This must be a “wet” signature. Electronic signatures
are not accepted.

 

		5.	Corporate Secretary should fill in the date and complete
the first signature box.

 

		6.	Another officer of the company will certify in the following
section that the Corporate Secretary holds such role and that his/her signature is valid. That officer should sign in the second
signature box.

 

		7.	This document should be submitted on your Company Letterhead.

 

    Page 9 of 14

     

    

 

		COMPANY
                                         LETTERHEAD

                                                                                                                                                                                                                                   

CERTIFICATE OF INCUMBENCY
AND AUTHORITY 

OF

POLAR POWER INC

(Name of Supplier)

	 

 

This Certificate
is being provided in connection with the Supplier Agreement, dated as of 2019-05-20 (Date
of Agreement) (as amended or otherwise modified from time to time, the “Supplier Agreement”), between POLAR
POWER INC (Name of Supplier) (“Supplier”) and Citibank, N.A., its
branches and subsidiaries and affiliates from time to time party thereto (collectively, “Citibank”).

 

I,
the undersigned, do hereby certify to Citibank that I am the CEO [corporate Secretary] of Supplier and am authorized to
certify on behalf of Supplier as follows: (i) each of the person(s) named below (each an “Authorized Officer”) is
a duly elected or appointed, qualified and acting officer of Supplier and holds the title, email address and phone number set
forth next to such person’s name, (ii) the signature set forth next to the name of each Authorized Officer below is
such Authorized Officer’s true and lawful signature, and (iii) each Authorized Officer is authorized on behalf of
Supplier to (x) execute and deliver on behalf of the Supplier, the Supplier Agreement, related Setup Forms and all other
agreements, documents and instruments required thereunder or contemplated thereby, (y) add, modify, or delete any employee of
Supplier as a user that will or has access to the use of the System (as defined in the Supplier Agreement) in connection with
the Supplier Agreement (“User Changes”) and (z) add, modify or delete Supplier details, Supplier bank account
details or primary contact details in connection with the Supplier Agreement (“Supplier Bank Changes”).

  

	Authorized Officer Name and
    Title	 	Signature	 	Email Address	 	Phone
	Arthur D. Sams, CEO	 	/s/ Arthur D. Sams	 	asams@polarpowerinc.com	 	424-286-4118
	Luis Zavala, CFO	 	/s/ Luis Zavala	 	lzavala@@polarpowerinc.com	 	424-286-4117

 

In furtherance of the foregoing
and without limitation thereof, Citibank may accept and rely on any communication, notice and instruction in connection with User
Changes and/or Supplier Bank Changes that is sent or purported to be sent by any Authorized Officer (whether oral, telephonic,
written, facsimile or electronic) and that such communication, notice and instruction is valid and binding on the Supplier, irrespective
of any error or fraud contained therein or the identity of the individual who sent the communication, notice and instruction. If
any communication, notice and instruction is sent to Citibank electronically via e-mail or otherwise, Supplier will not contest
the validity, legally binding nature or enforceability of such communication, notice and instruction on the basis that the act
of sending such communication, notice and instruction electronically is invalid or not binding on such party.

  

Any signature to this Certificate
delivered by facsimile or email in “pdf” format shall be deemed an original signature hereto. This Certificate shall
remain in effect until further notice in writing is received by Citibank from the Supplier. A change to this Certificate requires
a new Certificate to be executed and delivered by the Supplier to Citibank and accepted by Citibank before such change takes effect.

 

This Certificate and the transactions contemplated hereby are governed by the laws of the State of New York.

 

IN WITNESS WHEREOF, I have hereunto subscribed
my name this 20th day of May, 2019.

 

	 	By:	/s/ Arthur D. Sams
	 	Name: 	Arthur D. Sams
	 	Title:	CEO

 

	I,  	Luis Zavala,	 the  	CFO 	of the Supplier do hereby certify that   	Arthur D. Sams	is the duly elected, qualified and acting 	 
	 	(Name)	 	(Title)		(the
above signor)	 	 
	 	 	 	 	 	 	 	 
	 	CEO	[corporate Secretary] of the Supplier and that the signature above is his true and genuine signature.

  

	 	By:	/s/ Luis Zavala
	 	Name:	Luis Zavala
	 	Title:	CFO

 

249 E. Gardena
Blvd, Gardena, CA. 90248 ● Tel: (310) 830-9153 ● Fax:
(310) 719-2385

 

    Page 10 of 14

     

    

 

Annex 1

 

PRICING SCHEDULE

 

Supplier’s Legal
Company Name (please complete): Polar Power, Inc.

Buyer: AT&T Services Inc
and as further set forth in clause (D) below (no intracompany relationship with Supplier).

Citibank entity: Citibank NA and/or
Citibank Europe PLC

 

		A.	Receivables Discounting Fees and Charges:

 

“Discount Charge”
for each Discount Offer is defined as the Payment Amount multiplied by the Discount Rate;

 

Discount Charge = Payment Amount x Discount
Rate.

 

Where:

 

“Discount Rate”
means the annual percentage rate, calculated as the sum of the LIBOR prevailing on the Discount Date and the Spread, multiplied
by the Discount Acceptance Period and divided by 360:

 

Discount Rate = (LIBOR +
Spread) x (Discount Acceptance Period / 360).

 

“Spread” is equal
to 1.00% per annum.

 

“LIBOR” (London
Inter-Bank Offered Rate) is the LIBOR for the relevant currency for the relevant Discount Acceptance Period, as published by Bloomberg or if not available, any other page service specified by Citibank displaying the appropriate rate or if not available, as
determined by Citibank; provided that (i) if the Discount Acceptance Period falls between any two LIBOR periods, then LIBOR shall
be the rate for the higher of those two LIBOR periods and (ii) if at any time LIBOR is less than 0%, then LIBOR shall be 0%.

 

“Discount Acceptance
Period” is the number of days in the period starting from (and including) the date the Discount Proceeds are remitted by
Citibank to the Designated Account until (but excluding) the Payment Due Date.

 

“Discount Date” means the date that the
System processes each Discount Offer.

 

		B.	Other Fees and Charges: Citibank reserves the right
to assess processing fees from time to time.

 

		C.	Effective Date:

 

		1)	The Effective Date of this initial Pricing Schedule is
the date set forth in the first line of this Agreement.

 

		2)	The above pricing shall be effective commencing on the
Effective Date and shall continue until termination of this Agreement in accordance with Section 5.7 thereof (the “Termination
Date”); provided, however, Citibank may, at any time, change the above pricing (or any subsequent pricing) in its sole discretion
upon at least thirty (30) days prior notice to the Supplier, with such new pricing to be effective commencing on the 30th
day following such notice and continuing through and including the Termination Date.

 

		D.	Buyer:

 

		1)	For the purposes of this Pricing Schedule, “Buyer”
shall mean AT&T Services Inc and its various subsidiaries and affiliates that are located in the jurisdictions set forth in
clause (F) below.

 

		E.	Currencies:

 

		1)	The above pricing is only applicable for the following
currencies unless otherwise agreed in writing by the Parties: USD

 

		F.	Jurisdictions:

 

		1)	The above pricing is only applicable to Buyers that are
incorporated or otherwise organized in the following jurisdictions unless otherwise agreed in writing by the Parties: United States

 

    Page 11 of 14

     

    

 

Annex 2

 

LICENSE SCHEDULE

 

Terms and
Conditions

 

		1.	License Grant.

 

		(a)	Subject to
                                         the terms and conditions set forth in this Agreement, Citibank hereby grants the Supplier
                                         during the term of the Agreement a limited, revocable, personal, non-exclusive, non-transferable
                                         license and right, without the right to sublicense, to access and use the System and
                                         all tangible printed information (including any in electronic form) provided or made
                                         available from time to time by, or on behalf of, Citibank to the Supplier in connection
                                         with the use of the System (the “Policies and Procedures” and together
                                         with the System, the “Licensed Resources”), solely for the purposes
                                         contemplated by the Agreement (the “License”). Except as expressly
                                         set forth in the Agreement, the Supplier shall have no other right (including any ownership
                                         right or intellectual property right), title or interest to or in the Licensed Resources
                                         or any portion thereof.

 

The Supplier acknowledges
that all right, title and interest in and to the System, including without limitation, all rights in inventions, patents, copyrights,
design rights, database rights, trademarks and trade names, service marks, trade secrets, know-how and other intellectual property
rights (whether registered or unregistered) and all applications and rights to apply for any of them anywhere in the world that
apply to the Licensed Resources (together, the “Intellectual Property Rights”), are vested, and shall remain vested,
in Citibank and its licensors. Notwithstanding anything to the contrary contained herein and except as otherwise may be expressly
agreed in, writing, all right, title and interest in and to modifications, revisions, upgrades, updates, derivative works and
other improvements to or development of the System shall vest solely in Citibank and its licensors. Except for the grant herein
by Citibank to the Supplier of the License, nothing in this Agreement shall act to operate as an assignment or other transfer
of any of such rights to the Supplier.

 

		(b)	The Supplier confirms that Citibank and its licensors
may use any Message, Transaction data or other information posted by or on behalf of the Supplier for the purposes of providing
services and processing Transactions under this Agreement and operating and maintaining System.

 

		2.	Usage.

 

		(a)	The Supplier shall access and use, and shall ensure
that its Authorized Users access and use, the System only in accordance with this Agreement and the Policies and Procedures. Citibank
may at its sole discretion amend the System or the Policies and Procedures at any time.

 

		(b)	The Supplier shall remain informed and notify its
Authorized Users as to any updates to these Policies and Procedures that may be implemented from time to time. Approval and acceptance
of an update to the Policies and Procedures shall be deemed to be given if the Supplier continues to utilize the System subsequent
to the publication of any such update.

 

		(c)	The Supplier
                                         shall promptly use any successors, updates, new releases or replacements of any portion
                                         of any and all equipment provided by Citibank to the Supplier for the purposes of accessing
                                         or using the System, including all authentication products (together, the “Equipment”)
                                         or Licensed Resources or Software provided to it from time to time by Citibank or otherwise,
                                         for use in accessing the System, and cease to use the previous version or release of
                                         such portion.

 

		(d)	The Supplier shall have the right under the License
to access the content of the website for the System on a computer screen, to print reasonable extracts from the website, and to
save reasonable copies of data posted on the System to the Supplier’s hard drive, in each case solely for the purposes contemplated
by this Agreement. All other copying, distribution or commercial use of any of the content of the website is strictly forbidden.
Except for the limited right granted by this paragraph 2(d), no other right or license is granted in respect of the content of
the website.

 

		(e)	The Supplier shall have no right to, and shall not,
without the prior written consent of Citibank, alter or modify the whole or any part of the Licensed Resources.

 

    Page 12 of 14

     

    

 

		3.	Security,
                                         Authorized Users and Access.

 

The Supplier shall safeguard
and keep confidential, and put into effect and maintain commercially reasonable security measures to safeguard and keep confidential,
the Licensed Resources. In furtherance of the foregoing, the Supplier agrees that:

 

		(i)	it will not knowingly interfere with, defeat, circumvent
or tamper with a Message, or with the restrictions on use of functionality or access to information on any portion of the System,
or attempt to do so;

 

		(ii)	it will not knowingly introduce into any portion of
the System any virus or other data or code that harms, or may adversely affect, the operation of the System, and will put into
effect and maintain commercially reasonable measures to prevent any such introduction;

 

		(iii)	it will ensure that all Messages being communicated
by the Supplier through the System are sent in accordance with this Agreement and the Policies and Procedures;

 

		(iv)	the issuance of Logins to Authorized Users, to access
the System and the rules and particular roles applicable to the various types of Authorized User shall be in accordance with the
Policies and Procedures;

 

		(v)	the Supplier warrants that each of its Authorized
Users is authorized to bind the Supplier, and agrees to be bound by any usage of the System that occurs under any of its Authorized
Users’ Logins, unless it has previously notified Citibank in writing that particular Logins or Authorized Users are to be cancelled
or their security has been compromised;

 

		(vi)	the Supplier shall ensure that only its Authorized
Users access the System and shall procure that its Authorized Users: (a) maintain the secrecy of their Logins and do not disclose
their Logins to any other person; and (b) are informed of and abide by the Policies and Procedures;

 

		(vii)	the Supplier shall immediately notify Citibank in
writing if it becomes aware of any unauthorized use, loss or theft of its Authorized Users’ Logins or if the Supplier becomes
aware or suspects that any of them have become known by an unauthorized person. Upon such notification Citibank may (at its absolute
discretion) revoke, suspend or disable such Logins and/or issue new Logins to the Supplier;

 

		(viii)	the Supplier shall not, and shall procure that any
of its representatives do not, access or attempt to gain access to any part of the System that is not permitted under its Logins;
and

 

		(ix)	the Supplier shall not use the System as or in connection
with a bureau service or for the provision of services to third parties.

 

		4.	Messages.

 

		(a)	The Supplier shall use the System to send all Messages
under this Agreement (including, without limitation, Discount Offers and any updates to the Supplier’s list of Authorized Users)
on the Supplier’s behalf.

 

		(b)	Any Message or Transaction which appears to Citibank
to be sent and or entered into by the Supplier via the System is valid and binding on the Supplier, and Citibank is entitled to
rely thereon, irrespective of any error or fraud contained therein or the identity of the individual who sent the Message, except
to the extent that such error or fraud or use of the System by an unauthorized third party is a result of the failure by Citibank,
as the case may be, to use commercially reasonable security measures to prevent unauthorized access to the System. The Supplier
agrees that the act of sending a Message electronically in accordance with this Agreement is as legally binding as if the Supplier
had manually executed and delivered that Message in written form, and that the Supplier will not contest the validity, legally
binding nature or enforceability of that Message on the basis that the act of sending the Message electronically is invalid or
not binding on the Supplier.

 

		(c)	Neither party shall use the System to communicate
formal contractual notice.

 

		5.	System
                                         Availability.

 

The Supplier
acknowledges and agrees that: (i) Citibank does not represent or warrant that the System will be error-free; (ii) Citibank provides
no warranty as to the availability of the System and there will be downtime from time to time when the System cannot be accessed;
and (iii) the Supplier is responsible for providing and maintaining, and Citibank does not have any liability or responsibility
in respect of, equipment not supplied by or on behalf of Citibank, or utility services that the Supplier utilizes as a result of
its participation in the System and maintaining a link to the System, or any failures, errors, unavailability or delays resulting
from the use of such equipment or services.

   

    Page 13 of 14

     

    

 

		6.	Confidentiality.

 

Notwithstanding
Section 5.4 of this Agreement, Citibank may compile, copy, modify, license and exploit any and all data entered into the System
by or on behalf of the Supplier, including without limitation Transaction data, Message data and statistical click-stream data,
provided always that such data has been anonymized such that it does not compromise any personal data in contravention of any applicable
personal data protection and privacy legislation and that it does not directly or indirectly identify any individuals, any Supplier
or any other corporate entities.

 

		7.	Representations,
                                         Warranties and Covenants of Supplier.

 

The
Supplier hereby represents, warrants and covenants to and with Citibank as follows:

 

		(a)	The Supplier has independently verified or shall independently
verify the validity of the entity and the account information and any changes to such information stored on the System with respect
to each Buyer. The Supplier acknowledges that Citibank has no obligation to inspect or view the content of Messages conveyed through
the System, and that Citibank has no liability in the event that the Supplier is in breach of this obligation.

 

		(b)	The Supplier
                                         shall maintain sufficient records of all Messages and Transactions sent or entered into
                                         by it using the System and otherwise with respect to its obligations and activities in
                                         connection with this Schedule, including (without limitation) information with respect
                                         to any underlying commercial trade transaction (or associated disputes) to which it is
                                         a party, and with respect to compliance of such transactions with applicable laws and
                                         regulations (“Records”). The Supplier shall retain each Record required
                                         to be maintained under this Section 7 during the longer of (i) the term of this Agreement
                                         or (ii) as may be required by law or regulation.

 

		(c)	The Supplier shall provide Citibank with copies of
any Records as Citibank may require, or the Supplier shall allow Citibank to examine and take copies of the Records, or any part
of them, which are reasonably required in order to comply with an order, instruction or request from any authority of competent
jurisdiction, or to ensure compliance with or in connection with the performance of the terms of this Schedule.

 

 

Page 14 of 14Exhibit 10.1

 

Certain
information identified by [***] has been excluded from this exhibit because it both (i) is not material and (ii) would be competitive
harmful if publicly disclosed.

Execution Copy

 

THIS PROMISSORY NOTE AND THE RIGHTS
AND OBLIGATIONS EVIDENCED HEREBY ARE SUBORDINATE, IN THE MANNER AND TO THE EXTENT SET FORTH IN (I) THAT CERTAIN INTERCREDITOR AGREEMENT
(AS AMENDED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “FIRST LIEN SUBORDINATION AGREEMENT”), DATED
AS OF THE DATE HEREOF, AMONG GWG LIFE, LLC, A DELAWARE LIMITED LIABILITY COMPANY (TOGETHER WITH ITS SUCCESSORS AND PERMITTED ASSIGNS)
AND HCLP NOMINEES, L.L.C., A DELAWARE LIMITED LIABILITY COMPANY, INDIVIDUALLY AS A SENIOR CREDITOR AND AS SENIOR CREDITOR REPRESENTATIVE
AND IN SUCH CAPACITY AS AGENT FOR THE SENIOR LENDERS REFERRED TO THEREIN (AND ITS SUCCESSORS AND ASSIGNS IN SUCH CAPACITY), TO
THE SENIOR LOAN LIABILITIES DESCRIBED IN THE FIRST LIEN SUBORDINATION AGREEMENT, AND (II) THAT CERTAIN INTERCREDITOR AGREEMENT
(AS AMENDED, RESTATED OR OTHERWISE MODIFIED FROM TIME TO TIME, THE “SECOND LIEN SUBORDINATION AGREEMENT”), DATED
AS OF THE DATE HEREOF, AMONG GWG LIFE, LLC (TOGETHER WITH ITS SUCCESSORS AND PERMITTED ASSIGNS), AND BENEFICIENT HOLDINGS, INC.,
A DELAWARE CORPORATION, INDIVIDUALLY AS A SENIOR CREDITOR AND AS SENIOR CREDITOR REPRESENTATIVE AND IN SUCH CAPACITY AS AGENT FOR
THE SENIOR LENDERS REFERRED TO THEREIN (AND ITS SUCCESSORS AND ASSIGNS IN SUCH CAPACITY), TO THE SENIOR LOAN LIABILITIES DESCRIBED
IN THE SECOND LIEN SUBORDINATION AGREEMENT, AND EACH HOLDER OF THIS INSTRUMENT, BY ITS ACCEPTANCE HEREOF, SHALL BE BOUND BY THE
PROVISIONS OF THE FIRST LIEN SUBORDINATION AGREEMENT AND SECOND LIEN SUBORDINATION AGREEMENT. IN THE EVENT OF ANY CONFLICT BETWEEN
THE TERMS OF (A) THE FIRST LIEN SUBORDINATION AGREEMENT OR SECOND LIEN SUBORDINATION AGREEMENT, ON THE ONE HAND, AND (B) THE TERMS
OF THIS PROMISSORY NOTE, ON THE OTHER, THE TERMS OF THE FIRST LIEN SUBORDINATION AGREEMENT OR SECOND LIEN SUBORDINATION AGREEMENT
SHALL GOVERN AND CONTROL.

 

PROMISSORY NOTE

 

	U.S. $65,000,000	Dallas, Texas
	 	May 31, 2019

 

FOR VALUE RECEIVED,
the undersigned, not in their individual capacities but solely as trustees (the “Trustees”) on behalf of the
Texas common law trusts (the “Trusts”) listed on the signature page hereto (each a “Borrower”
and collectively the “Borrowers”) hereby, jointly and severally, unconditionally promise to pay to the order
of GWG LIFE, LLC, a Delaware limited liability company (together with its successors and assigns, the “Lender”),
at its principal office, or at such other place or places as the Lender may from time to time designate in writing, in lawful money
of the United States, the principal amount of SIXTY-FIVE MILLION AND NO/100 DOLLARS ($65,000,000), or so much thereof as may be
advanced by the Lender pursuant to this Note, on the Maturity Date (as defined below), together with all accrued and unpaid
interest thereon at the rate and in accordance with the terms of this promissory note (this “Note”) as follows:

 

1. Loan:
The outstanding principal amount of the loan evidenced by this Note, upon the funding of the Initial Advance and the Subsequent
Advance, is $65,000,000, which amount shall be decreased by prepayment in accordance with Section 8, as applicable, in accordance
with the terms of this Note (the “Loan”).

 

     

     

    

 

2. Type:
The Loan shall be made to the Borrowers in two advances, with the initial advance being in the amount of FIFTY MILLION AND NO/100
DOLLARS ($50,000,000) (the “Initial Advance”) to be made on or about the date hereof (the “Effective
Date”), and the balance of FIFTEEN MILLION AND NO/100 DOLLARS ($15,000,000) (the “Subsequent Advance”)
to be made upon at least three (3) business days’ the written request of the Borrower; provided that (i) without the Lender’s
consent, the Subsequent Advance shall not be made sooner than September 15, 2019 or later than December 31, 2019, and (ii) the
obligation of the Lender to fund the Subsequent Advance shall be subject to the following conditions precedent as of the date of
the Subsequent Advance: (x) no Event of Default has occurred and is continuing or would result therefrom, (y) all representations
and warranties of Borrower under this Note shall be true and correct in all material respects, and (z) no Material Adverse Effect
has occurred. Each advance to be made by the Lender under this Note shall effected by wire transfer of immediately available funds
pursuant to the wire instructions specified on Schedule I and shall be made to, and allocated among, the Borrowers based
on their “Allocated Percentage” as specified on Schedule II. The Borrowers acknowledge and agree that (a) upon
the funding of advances in accordance with the wire instructions specified on Schedule I, each Borrower will have been deemed
to have received its portion of the proceeds of such advances based on its “Allocated Percentage” as specified on Schedule
II (regardless of whether they are the owner of the bank account(s) specified on Schedule I); and (b) each of them will
derive substantial direct and indirect benefits from the funding of the Loan evidenced by this Note to the Borrowers and that the
Lender would not have funded the Loan unless the obligation to repay the Loan were not joint and several liabilities of the Borrowers
(it being understood and agreed that, following the indefeasible repayment in full of the obligations payable under this Note,
the Borrowers may have rights of contribution among themselves).

 

3. Use
of Proceeds: To the extent permitted by the organizational documents of the Borrowers and not in contravention of Applicable
Law (as defined below), the Borrowers shall use the proceeds of the Loan to acquire as an investment, the Senior Beneficial Interests
of some or all of those certain Collective Collateral Trusts set out on Schedule III (with such acquisition occurring in
accordance with the methodology and procedures set forth in Schedule V) and to pay legal fees and expenses incurred in connection
with the issuance of this Note.

 

4. Term:
Subject to Section 8 hereof, all outstanding principal and accrued but unpaid interest on the Note shall mature and become
due and payable, and shall be paid by the Borrowers in full, on the earlier of (a) June 30, 2023, and (b) the date that the principal
of this Note is accelerated pursuant to Section 10 (the “Maturity Date”).

 

    2

     

    

 

5. Interest
Rate and Payments: 

 

(a) The
outstanding principal amount of the Loan shall bear interest commencing on the date of the respective advance at a rate per annum
equal to 7.00%. Interest on the Loan shall accrue and become due and payable in full in cash on the Maturity Date (or as otherwise
provided in this Note).

 

(b) Interest
shall be computed on the basis of a year of 360 calendar days and paid for the actual number of calendar days elapsed. Interest
for any period shall be calculated from and including the first day thereof to but excluding the last day thereof. If a payment
to be made hereunder shall fall due on a day that is not a business day, the date for payment shall be extended to the next succeeding
business day without additional interest thereon.

 

(c) In
the event the Borrowers elect to prepay this Note in whole or in part pursuant to Section 8, any accrued and unpaid interest
on the amount to be prepaid shall be due and payable by the Borrowers on the date of the prepayment.

 

(d) In
no event shall the amount or rate of interest due and payable under this Note exceed the maximum amount or rate of interest allowed
by Applicable Law, and, in the event any such excess payment is made by the Borrowers or received by the Lender, such excess sum
shall be credited as a payment of principal (or if no principal shall remain outstanding, shall be refunded to the Borrowers).
It is the express intent hereof that the Borrowers not pay and the Lender not receive, directly or indirectly or in any manner,
interest in excess of that which may be lawfully paid under Applicable Law.

 

(e) The
Lender may, and the Borrowers hereby irrevocably authorize the Lender to, maintain in accordance with its usual practice an account
or accounts evidencing the indebtedness of the Borrowers to the Lender resulting from the Loan made by the Lender and evidenced
by this Note, including, without limitation, the date of the Loan funding, the amounts of principal and accrued interest payable
and paid to the Lender from time to time hereunder. Such account or accounts shall be conclusive (absent manifest error) evidence
of such indebtedness of the Borrowers.

 

6. Security:
The Loan shall be unsecured, unless otherwise agreed in writing by the Borrowers and the Lender in writing after the date hereof.

 

7. Promise
to Pay Unconditional: The Borrowers’ obligations under this Note are absolute and unconditional and shall not be subject
to any defense, counterclaim or set-off or any other deduction whatsoever. Each Borrower hereby waives presentment, demand, protest
and notice of dishonor. Payments under this Note shall be applied in such order of application as the Lender may determine in its
sole discretion.

 

8. Optional
Prepayments. The Borrowers may, at any time and from time to time, prepay the Loan in whole or in part, without premium or
penalty, subject only to payment of interest accrued to the date of repayment in accordance with Section 5. The Borrowers
shall give the Lender notice of each prepayment pursuant to this Section 8 no later than 10:00 a.m., Central time, on the
third business day before the date of such prepayment. Each such notice of prepayment shall specify (i) the date such prepayment
is to be made, (ii) the amount of principal of the Loan to be prepaid, such amount to be in minimum increments of $100,000, and
(iii) the amount of accrued interest to be paid.

 

    3

     

    

 

9. Representations; Covenants: Each
Trustee hereby jointly and severally represents, warrants, covenants and agrees, in its capacity as trustee for each of the
trusts, that as of the date hereof:

 

(a) The
Trustees are duly appointed and acting trustees of the Trusts and have the power and authority to own properties and to carry on
their business as now being and hereafter proposed to be conducted.

 

(b) The
Borrowers have the power, legal right, and authority to (i) execute, deliver and perform the obligations in accordance with the
terms of this Note, and (ii) borrow money on the terms and subject to the conditions herein provided. This Note has been duly executed
and delivered by the Trustees and is a legal, valid and binding obligation of the Borrowers, enforceable against the Borrowers
in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar
laws affecting the enforcement of creditors’ rights generally. The execution, delivery and performance in accordance with
its terms by the Borrowers of this Note do not and (absent any change in any Applicable Law or applicable contract) will not violate,
conflict with, result in a breach of, constitute a default under, or result in or require the creation of any lien upon any assets
of a Borrower under, (A) the organizational documents of such Borrower, (B) any contract or other instrument to which such Borrower
is a party or by which such Borrower or any of its properties may be bound or (C) any Applicable Law, except in the case of clauses
(B) and (C) above for such violations, conflicts, breaches or defaults which individually or in the aggregate could
not reasonably be expected to result in a Material Adverse Effect.

 

(c) The
Borrowers will not, as a result of the transactions contemplated hereunder, be required to be registered as, an “investment
company” as defined in the Investment Company Act of 1940, as amended.

 

(d) The
execution, delivery and performance of this Note in accordance with its terms by the Borrowers, and the borrowing hereunder, do
not require any consent or approval of, registration or filing with, or any other action by, any governmental authority or any
other person or entity (“Person”), except such as have been obtained or made and are in full force and effect or the
absence of which could not reasonably be expected to result in a Material Adverse Effect.

 

(e) The
Borrowers are in compliance in all material respects with all Applicable Law. The Borrowers are in compliance with all indentures,
agreements and other instruments binding upon them or their property, except where the failure to do so, individually or in the
aggregate, could not reasonably be expected to result in a Material Adverse Effect.

 

(f) There
are no actions, suits or proceedings by or before any arbitrator or governmental authority pending against or, to the knowledge
of the Trustees, threatened in writing against or affecting any Borrower (i) as to which there is a reasonable possibility of an
adverse determination; or (ii) that involve this Note or the transactions contemplated hereby, that, in the case of each of (i)
and (ii) if adversely determined, could reasonably be expected, individually or in the aggregate, to result in a Material Adverse
Effect

 

    4

     

    

 

(g) On
the Effective Date, and immediately prior to and after giving effect to the issuance of the Note and the effectiveness of the Loan
hereunder, (a) the fair value of each Borrower’s assets is greater than the amount of its liabilities (including disputed,
contingent and unliquidated liabilities) as such value is established and liabilities evaluated, (b) the present fair saleable
value of each Borrower’s assets is not less than the amount that will be required to pay the probable liability on the Borrower’s
debts as they become absolute and matured, (c) each Borrower is able to realize upon its assets and pay its debts and other liabilities
(including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business, (d) each Borrower
does not intend to, and does not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities
mature and (e) each Borrower is not engaged in business or a transaction, and is not about to engage in business or a transaction,
for which its property would constitute unreasonably small capital.

 

(h) To
the extent applicable, each Borrower is in compliance, in all material respects, with anti-money laundering laws and anti-terrorism
finance laws.

 

(i) The
proceeds of the Loan shall not be used, directly or indirectly: (a) to offer or give anything of value to any official or
employee of any foreign government department or agency or instrumentality or government-owned entity, to any foreign political
party or party official or political candidate or to any official or employee of a public international organization, or to anyone
else acting in an official capacity (collectively, “Foreign Official”), in order to obtain, retain or direct
business by (i) influencing any act or decision of such Foreign Official in his official capacity, (ii) inducing such Foreign Official
to do or omit to do any act in violation of the lawful duty of such Foreign Official, (iii) securing any improper advantage or
(iv) inducing such Foreign Official to use his influence with a foreign government or instrumentality to affect or influence any
act or decision of such government or instrumentality; (b) to cause the Lender to violate the U.S. Foreign Corrupt Practices Act
of 1977; or (c) to cause the Lender to violate any other anti-corruption law applicable to the Lender.

 

(j) No
Borrower is any of the following (a “Restricted Person”): (a) a Person that is listed in the annex to, or is
otherwise subject to the provisions of, Executive Order No. 13224 on Terrorist Financing, effective September 24, 2001 (the “Executive
Order”); (b) a Person that is named as a “specially designated national and blocked person” on the most current
list published by the U.S. Treasury Department Office of Foreign Assets Control (“OFAC”) at its official website or
any replacement website or other replacement official publication of such list or similarly named by any similar foreign governmental
authority; (c) a Person that is owned 50% or more by any Person described in foregoing clause (b); (d) any other Person with which
the Lender is prohibited from dealing under any sanctions laws applicable to the Lender; or (e) a Person that derives more than
10% of its annual revenue from investments in or transactions with any Person described in foregoing clauses (a), (b), (c) or (d).
Further, the Loans shall not be used to finance or facilitate, directly or indirectly, any transaction with, investment in, or
any dealing for the benefit of, any Restricted Person or any transaction, investment or dealing in which the benefit is received
in a country for which such benefit is prohibited by any sanctions laws applicable to any Borrower.

 

    5

     

    

 

(k) No
Event of Default (as defined below) exists hereunder or would result from the issuance of the Note or the effectiveness of the
Loan.

 

(l) The
proceeds of the Loan shall solely be used in accordance with Section 3 above.

 

(m) The
Trustees shall furnish to the Lender prompt written notice of the following: (i) as soon as possible, and in any event within ten
(10) calendar days after a Trustee obtains knowledge thereof, the occurrence of any Event of Default or any event or circumstance
that, with notice or the passage of time, would result in the occurrence of an Event of Default; (ii) so long as it is lawful to
do so, as soon as possible, and in any event within ten (10) calendar days after a Trustee obtains knowledge thereof, the filing
or commencement of any action, suit or proceeding by or before any arbitrator or governmental authority against or affecting any
Borrower that, if adversely determined, could reasonably be expected to result in a Material Adverse Effect; (iii) promptly after
a Trustee obtains knowledge thereof, any other development that results in, or could reasonably be expected to result in, a Material
Adverse Effect. Each notice delivered under this Section 9(m) shall be accompanied by a statement of a Trustee setting forth
the details of the event or development requiring such notice and any action taken or proposed to be taken with respect thereto.

 

(n) Except
as provided under the terms of that certain Intercreditor Agreement, dated the date hereof (the “HCLP Intercreditor Agreement”),
by and between HCLP Nominees, L.L.C. (“HCLP”) and the Lender, and that certain Second Lien Intercreditor Agreement,
dated the date hereof (the “BHI Intercreditor Agreement”), by and between Beneficient Holdings, Inc. (“BHI”)
and the Lender, the Trustees shall ensure that at all times while any principal amount of the Loan remains outstanding, the claims
of the Lender in respect of the Loan shall in all respects rank prior to or at least pari passu with the claims of every other
unsecured creditor of the Borrowers resulting from an agreement with such a creditor entered into after the date hereof.

 

(o) Until
all amounts outstanding under this Note shall have been paid in full, the Borrowers shall not, from and after the date hereof,
directly or indirectly incur, create, or assume or suffer to exist any indebtedness for borrowed money, as permitted under the
Borrowers’ organizational documents, that is senior in right of payment to the payment obligations under the Loan other than
any “Senior Loan Liabilities” as defined in the HCLP Intercreditor Agreement and any “Senior Loan Liabilities”
as defined in the BHI Intercreditor Agreement.

 

(p) The
Trustees shall keep proper books of record and account in which full, true and correct entries are made of all dealings and transactions
in relation to the Borrowers’ business and activities. The Trustee shall permit any representatives designated by the Lender,
upon reasonable prior notice, to visit and inspect the Borrowers’ properties, to examine and make extracts from their books
and records, and to discuss their affairs, finances and condition with their advisors, all at such reasonable times and as often
as reasonably requested; provided, that if an Event of Default has occurred and is continuing, the Lender (or any of its representatives)
may do any of the foregoing at the joint and several expense of the Borrowers at any time during normal business hours and without
advance notice. For avoidance of doubt, all ordinary course inspections undertaken by the Lender at any time that no Event of Default
has occurred and is continuing shall be at the Lender’s expense.

 

    6

     

    

 

(q) The
Borrowers shall comply in all material respects with Applicable Law. “Applicable Law” shall mean (i) all applicable
common law and principles of equity and (ii) all applicable provisions of all (A) constitutions, statutes, rules, regulations and
orders of governmental authorities, (B) governmental approvals and governmental registrations and (iii) orders, decisions, judgments
and decrees, including any governmental order.

 

(r) The
Borrowers shall not create, incur, assume or permit to exist any Lien on any property or asset now owned or hereafter acquired
by it, or assign or sell any income or revenues (including accounts receivable rights to distributions) or rights in respect of
any thereof, except: (i) Liens imposed by law for taxes that are not yet due or are being contested; (ii) carriers’, warehousemen’s,
mechanics’, materialmen’s, repairmen’s and other like Liens imposed by law, arising in the ordinary course of
business and securing obligations that are not overdue by more than 60 days; (iii) pledges and deposits made in the ordinary course
of business in compliance with workers’ compensation, unemployment insurance and other social security laws or regulations;
(iv) deposits to secure the performance of bids, trade contracts, leases, statutory obligations, surety and appeal bonds, performance
bonds and other obligations of a like nature, in each case in the ordinary course of business; (v) judgment liens in respect of
judgments that do not constitute an Event of Default; (vi) easements, zoning restrictions, rights-of-way and similar encumbrances
on real property imposed by law or arising in the ordinary course of business that do not secure any monetary obligations and do
not materially detract from the value of the affected property or interfere with the ordinary conduct of business of the Borrowers;
(vii) any interest or title of a lessor under any operating lease entered into by a Borrower in the ordinary course of its business
and covering only the assets so leased; (viii) Liens and rights of setoff of banks and securities intermediaries in respect of
deposit accounts and securities accounts maintained in the ordinary course of business; (ix) Liens in favor of HCLP to secure obligations
under the Senior Loan Documents (as defined in the HCLP Intercreditor Agreement) or BHI to secure obligations under the Senior
Loan Documents (as defined in the BHI Intercreditor Agreement); and (x) Liens specified on Schedule IV. “Liens”
shall mean with respect to any property or asset (or any income or profits therefrom) of any Person (in each case whether the same
is consensual or nonconsensual or arises by contract, operation of law, legal process or otherwise) (y) any mortgage, lien, pledge,
attachment, levy or other security interest of any kind thereupon or in respect thereof or (z) any other arrangement, express or
implied, under which the same is subordinated, transferred, sequestered or otherwise identified so as to subject the same to, or
make the same available for, the payment or performance of any liability in priority to the payment of the ordinary, unsecured
liabilities of such Person. For the purposes of this Note, a Person shall be deemed to own subject to a Lien any asset that it
has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other
title retention agreement relating to such asset.

 

    7

     

    

 

(s) The
Borrowers shall not merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with
the Borrowers, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially
all/any substantial part of its assets, or liquidate or dissolve, or purchase or otherwise acquire all or substantially all of
the assets or any equity interests of any class of, or any partnership or joint venture interest in, any other Person, or change
its jurisdiction of incorporation or organization, if any, or the form or type of its organization if such action would reasonably
be expected to adversely affect the Borrower’s obligation or ability to repay the Loan.

 

(t) The
Borrowers shall not sell, lease or otherwise transfer any property or assets to, or purchase, lease or otherwise acquire any property
or assets from, or otherwise engage in any other transactions with, any of their Affiliates, except transactions carried out in
the ordinary course of business and on terms and conditions no less favorable to the Borrower than could be obtained in an arms’
length transaction with an unrelated third party. “Affiliate” means with respect to a Person, any other Person
that, at the time of determination, directly or indirectly through one or more intermediaries, controls, or is controlled by, or
is under common control with, such first Person.

 

(u) The
Borrowers shall not engage in any business other than as set forth or contemplated by their respective organizational documents.

 

(v) The
Borrowers shall not (i) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or otherwise violates any anti-terrorism laws, anti-corruption laws or sanctions law, (ii) cause or permit any of
the funds that are used to repay the Loan to be derived from any unlawful activity with the result that the Lender would be in
violation of any Applicable Law or (iii) use the Loan, directly or indirectly, for any conduct that would cause the representations
and warranties in this Note to be untrue as if made on the date any such conduct occurs.

 

(w) Promptly
following the Lender’s request therefor, the Borrowers shall deliver to the Lender their unaudited quarterly and/or annual
financial statements, including without limitation, income statement, balance sheet, and related statements of operations and cash
flow.

 

(x) Any
revenues, monies, distributions or proceeds received by or on behalf of the Borrowers on account of or attributable to any Senior
Beneficial Interests from time to time purchased or acquired by the Borrowers shall be used to either (i) prepay or repay amounts
outstanding or owed under this Note or (ii) acquire as an investment Senior Beneficial Interests in Collective Collateral Trusts
in a manner consistent with the methodology and procedure set forth in Schedule V.

 

10. Events of Default; Remedies: The following
shall be events of default under this Note (each, an “Event of Default”):

 

(a) the Borrowers fail to pay any principal,
interest or other amount under this Note when due and such failure continues for twenty (20) calendar days after written
notice to the Trustees;

 

    8

     

    

 

(b) any
representation or warranty made or deemed made by or on behalf of any Borrower in or in connection with this Note shall prove to
have been incorrect or misleading in any material respect when made or deemed made;

 

(c) any
Borrower fails to observe or perform any covenant contained in this Note and such failure continues for 20 calendar days after
written notice to the Trustees;

 

(d) any
Borrower (i) liquidates or dissolves, (ii) makes an assignment for the benefit of creditors or admits in writing its inability
to pay its debts as they become due, or (iii) consents to the appointment of a receiver, trustee
or liquidator of all or substantially all of its assets, is unable to meet debts, or files bankruptcy;

 

(e) any
Borrower shall have filed against it any receivership, bankruptcy, insolvency or other similar proceedings and the same shall not
have been stayed or dismissed within 60 days;

 

(f) any
Borrower shall fail to make any payment (whether of principal or interest and regardless of amount) in respect of any Indebtedness
in an aggregate amount in excess of $1,000,000, when and as the same shall become due and payable, which failure shall continue
beyond any cure period provided under the terms of such Indebtedness;

 

(g) one
or more judgments (not covered by a financially solvent insurance company that has not denied coverage) for the payment of money
in an aggregate amount in excess of $1,000,000 (treating any deductible, self-insurance, denied claim, uninsured liability or retention
as not so covered) shall be rendered against any Borrower and the same shall remain undischarged for a period of 30 consecutive
calendar days during which execution shall not be effectively stayed, or any action shall be legally taken by a judgment creditor
to attach or levy upon any assets of any Borrower to enforce any such judgment;

 

(h) (i)
HCLP (or its assignee, transferee, designee or representative) has commenced or caused to be commenced the exercise or enforcement
of any of its rights and remedies as a secured creditor under the Senior Loan Documents (as defined in the HCLP Intercreditor Agreement)
with respect to any assets of any Borrower, or (ii) BHI (or its assignee, transferee, designee or representative) has commenced
or caused to be commenced the exercise or enforcement of any of its rights and remedies as a secured creditor under the Senior
Loan Documents (as defined in the BHI Intercreditor Agreement) with respect to any assets of any Borrower.

 

(i) any
Borrower or Affiliate thereof shall challenge or contest in any action, suit, or proceeding the validity or enforceability of this
Note;

 

(j) an
event has occurred that has had or could reasonably be expected to (i) result in a Material Adverse Effect and such Material Adverse
Effect continues and remains uncured for a period of 30 calendar days after written notice to the Trustees or (ii) have an effect
on the status of any Borrower that would require it to register as an investment company under the Investment Company Act of 1940,
as amended.

 

    9

     

    

 

As used in this Note,
“Material Adverse Effect” means a material adverse effect on (x) the business, assets, liabilities, financial
condition, results of operations or business prospects of any Borrower, (y) the binding nature, validity or enforceability of this
Note as an obligation of any party hereto, or (z) the rights or remedies available to the Lender hereunder or the ability of any
Borrower to perform its obligations under this Note.

 

Upon the occurrence
and during the continuance of any Event of Default, the Lender may, at its option, (i) by written notice to the Trustees declare
the entire outstanding principal amount of the Loan, together with all accrued interest thereon, immediately due and payable; provided,
however, that, if an Event of Default described in Section 10(e) or 10(f) shall occur, the outstanding principal
of and accrued interest on the Loan shall become immediately due and payable without any notice, declaration or other act on the
part of the Lender; and (ii) enforce or cause to be enforced any of the rights or remedies accorded to the Lender under this Note
and at equity or law, by virtue of statute or otherwise.

 

The remedies in this
Note are cumulative and the Lender shall have the right to exercise all of the other rights, remedies and recourses available to
the Lender at law or in equity. Any failure to exercise this option shall not constitute a waiver by the Lender of the right to
exercise the same at any other time an Event of Default has occurred and is continuing. The resort to any remedy provided for by
law or in equity will not prevent the concurrent or subsequent employment of any other appropriate remedy or remedies.

 

11. Miscellaneous:

 

(a) Notices. Except
as otherwise expressly provided, all notices, communications and materials to be given or delivered pursuant to this Note shall
be given or delivered in writing at the following respective addresses and to the attention of the following individuals or departments
or at such other address or to the attention of such other individual or department as the party to which such information pertains
may hereafter specify in writing:

 

If to the Trustees or the Borrowers:

Jeffrey S. Hinkle

John A. Stahl

As Trustees of the Borrowers, and not as individuals

325 N. Saint Paul Street, Suite 4850

Dallas, TX 75205

Telephone: +1-214-445-4700

E-mail: jhinkle@beneficient.com

john.stahl.md@gmail.com

 

If to the Lender:

GWG Life, LLC

220 South Sixth Street, Suite 1200 Minneapolis, MN
55402

Attn: General Counsel

Telephone: +1-612-746-1932

E-mail: copp@gwgh.com

 

    10

     

    

 

Notices if (i) mailed
by certified or registered mail or sent by hand or overnight courier service shall be deemed to have been given when received;
(ii) sent by facsimile (if recipient has advised the sender of its facsimile number) during the recipient’s normal business
hours shall be deemed to have been given when sent (and if sent after normal business hours shall be deemed to have been given
at the opening of the recipient’s business on the next business day); and (iii) sent by e-mail shall be deemed received upon
the sender’s receipt of an acknowledgment or confirmation from the intended recipient (such as by the “return receipt
requested” function, as available, return e-mail or other electronic confirmation of delivery).

 

(b) Amendments;
Waivers. Any term, covenant, agreement or condition of this Note may be amended, and any right under this Note may be waived,
if, but only if, such amendment or waiver is in writing and is signed by the Lender and, in the case of an amendment, by the Trustees.
Unless otherwise specified in such waiver, a waiver of any right under this Note shall be effective only in the specific instance
and for the specific purpose for which given. No election not to exercise, failure to exercise or delay in exercising any right,
nor any course of dealing or performance, shall operate as a waiver of any right of the Lender under this Note or Applicable Law,
nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any
other right of the Lender under this Note or Applicable Law.

 

(c) Assignments.
The Borrowers shall not have the ability to assign any of their rights or obligations under this Note, whether voluntarily or by
operation of law, without the Lender’s prior written consent in its sole discretion. The Lender may, at any time, without
the consent or prior notice to the Borrowers or any other Person, assign, sell, transfer or grant participations in all or part
of the obligations and indebtedness evidenced by this Note. The Lender may disseminate to any assignee, purchaser or transferee
or participant or prospective assignee, purchaser, transferee or participant any information that the Lender has pertaining to
this Note and any other related documentation, including, without limitation, any information regarding the Borrowers, any other
liable party, or any property owned or held by the Borrowers or any other liable party.

 

(d) Successors
and Assigns. All of the provisions of this Note shall be binding upon and inure to the benefit of the parties hereto and their
respective successors and permitted assigns.

 

(e) Entire
Agreement. This Note embodies the entire agreement between the Borrowers and Lender relating to the subject matter hereof and
supersede all prior agreements, representations and understandings, if any, relating to the subject matter hereof.

 

(f) Severability.
Any provision of this Note that is prohibited or unenforceable in any jurisdiction or as to any Borrower shall, as to such jurisdiction
or Borrower, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
thereof or affecting the validity or enforceability of such provision in any other jurisdiction or against the other Borrowers.

 

    11

     

    

 

(g) Headings.
Section headings are inserted in this Note for convenience of reference only and shall not be used to construe any provision hereof.

 

(h) Counterparts.
This Note may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures
thereto were upon the same instrument. Delivery of an executed counterpart of this Note by facsimile or electronic transmission
shall be effective as delivery of a manually executed counterpart of this Note.

 

(i) Governing
Law. This Note and any claim, controversy, dispute or cause of action in contract based upon, arising out of or relating to
this Note and the transactions contemplated hereby shall be governed by, and construed in accordance with, the laws of the State
of New York.

 

(j) Judicial
Proceedings; Waiver of Jury Trial. The parties hereto agree that any judicial proceeding with respect to this Note may be brought
in any court of competent jurisdiction in the State of New York and irrevocably waive any objection they may now or hereafter have
as to the venue of any such proceeding brought in such a court or that such a court is an inconvenient forum. The parties hereto
waive personal service of process and consent that service of process may be made by certified or registered mail, return receipt
requested, at the relevant address specified or determined in accordance with the provisions of Section 11(a), and service
so made shall be deemed completed on the third business day after such service is deposited in the mail. THE BORROWERS AND THE
LENDER HEREBY WAIVE TRIAL BY JURY IN ANY JUDICIAL PROCEEDING TO WHICH THEY ARE PARTIES INVOLVING ANY CLAIM RELATED TO THIS NOTE.

 

(k) Replacement
of Lost Note. At the request of the Lender, the Borrowers agree to execute a replacement Note with the same terms and conditions
and remaining value in the event that this Note is lost, stolen or mutilated in form and substance reasonably satisfactory to the
Lender.

 

(l) Time
is of the Essence. It is agreed that time is of the essence for this Note.

 

(m) Expenses;
Indemnity; Damage Waiver.

 

(i) The Borrowers will jointly and severally
reimburse the Lender for all reasonable costs, expenses and liabilities incurred in connection with the collection or
enforcement of this Note or in the waiver or amendment to or “work-out” in connection with this Note, including,
without limitation, any and all reasonable legal fees and expenses incurred connection therewith. The Borrowers will pay for
or reimburse or indemnify the Lender against all and any liability for the payment of state documentary stamp taxes,
intangible taxes or other taxes (including interest and penalties, if any) that may be determined to be payable with respect
to effecting the transaction contemplated by the provisions contained in this Note. To the extent the Lender is required to
pay any such taxes (including interest and penalties, if any), the amount paid will be added to the principal amount of this
Note.

 

    12

     

    

 

(ii) The
Borrowers shall jointly and severally indemnify the Lender and its Affiliates and the partners, directors, officers, employees,
agents, trustees, administrators, managers, advisors and representatives of the Lender and of the Lender’s Affiliates (each,
a “Related Party”, and together with the Lender, the “Indemnitees”, and each, an “Indemnitee”)
against, and hold each Indemnitee harmless from, any and all losses, claims, damages, liabilities and related expenses (including
the legal fees and reasonable and documented out-of-pocket fees, disbursements and other charges of one counsel to all Indemnitees
taken as a whole, and, if reasonably necessary, one local counsel for all Indemnitees taken as a whole in each relevant jurisdiction
that is material to the interests of the Lender, and solely in the case of a conflict of interest, one additional counsel in each
relevant jurisdiction to each group of similarly affected Indemnitees), incurred by any Indemnitee or asserted against any Indemnitee
by any person (including any of the Borrowers) arising out of, in connection with, or as a result of (x) the execution or delivery
of this Note or any agreement or instrument contemplated hereby or thereby, the performance by the parties hereto of their respective
obligations hereunder or thereunder or the consummation of the transactions contemplated hereby or thereby, (y) any loan made pursuant
to this Note or the use or proposed use of the proceeds therefrom, or (z) any actual or prospective claim, litigation, investigation
or proceeding relating to any of the foregoing, whether based on contract, tort or any other theory, whether brought by a third
party or by one or more Borrowers, and regardless of whether any Indemnitee is a party thereto; provided that such indemnity shall
not, as to any Indemnitee, be available to the extent that such losses, claims, damages, liabilities or related expenses are determined
by a court of competent jurisdiction by final and non-appealable judgment to have resulted from the gross negligence or willful
misconduct of such Indemnitee or result from a claim brought by the Borrowers against an Indemnitee for breach in bad faith of
such Indemnitee’s obligations hereunder, if the Borrowers have obtained a final and non-appealable judgment in their favor
on such claim as determined by a court of competent jurisdiction.

 

(ii) To
the fullest extent permitted by Applicable Law, neither the Borrowers nor the Lender shall assert, and hereby waives, any claim
against the other party and each of their respective Related Parties, on any theory of liability, for indirect, special, punitive,
consequential or exemplary damages (as opposed to direct or actual damages) arising out of, in connection with, or as a result
of, this Note or any agreement or instrument contemplated hereby or thereby, the transactions contemplated hereby or thereby, any
loan made hereunder, or the use of the proceeds thereof.

 

(iii) All
amounts due under this Section 11(m) shall be payable promptly/not later than 30 calendar days after demand therefor.

 

(iv) Each
party’s obligations under this Section 11(m)  shall survive the termination of this Note.

 

    13

     

    

 

[Signature Pages Follow]

 

    14

     

    

 

IN WITNESS WHEREOF,
the parties hereto have caused this Promissory Note to be duly executed as of the date first written above.

 

	 	Borrowers:
	 	 
	 	JEFFREY
                    S. HINKLE AND JOHN A. STAHL, SOLELY IN THEIR CAPACITY

                    AS
                    TRUSTEES OF THE FOLLOWING TRUSTS (EACH SETTLED AS OF SEPTEMBER 1, 2017) AND NOT AS INDIVIDUALS:

	 	 
	 	THE
        LT-1 LIQUIDTRUST 

        THE
        LT-2 LIQUIDTRUST 

        THE
        LT-5 LIQUIDTRUST 

        THE
        LT-7 LIQUIDTRUST 

        THE
        LT-8 LIQUIDTRUST 

        THE
        LT-9 LIQUIDTRUST

	 	 	 
	 	By:	/s/
    Jeffrey S. Hinkle
	 	Name: 	Jeffrey S. Hinkle
	 	Title: 	Trustee
	 	 	 
	 	By:	/s/
    John A. Stahl
	 	Name: 	John A. Stahl 
	 	Title: 	Trustee

 

Signature Page to Promissory Note

 

     

     

    

 

Acknowledged and agreed by:

 

	Lender:	 
	 	 
	GWG LIFE, LLC	 
	 	 	 
	By:	/s/ Murray T. Holland	 
	Name: 	Murray T. Holland 	 
	Title:	Chief Executive Officer	 

 

Signature Page to Promissory Note

 

     

     

    

 

Schedule I

 

WIRING INSTRUCTIONS

 

 

[ *** ]

 

     

     

    

 

Schedule II

 

ALLOCATION OF PROCEEDS OF LOAN

 

Subject to the terms of the Note, the Loan are to be made to
the Borrowers in the following allocations:

 

	Borrower	 	Allocated Percentage	 	 	Allocated Portion of Initial Advance to be funded	 	 	Allocated Portion of Subsequent Advance to be funded	 	 	Total Portion of Advances to be funded	 
	Jeffrey S. Hinkle and John A. Stahl, in their capacity as Trustees of The LT-1 LiquidTrust	 	 	16.67	%	 	$	8,335,000	 	 	$	2,500,500	 	 	$	10,835,500	 
	Jeffrey S. Hinkle and John A. Stahl, in their capacity as Trustees of The LT-2 LiquidTrust	 	 	16.67	%	 	$	8,335,000	 	 	$	2,500,500	 	 	$	10,835,500	 
	Jeffrey S. Hinkle and John A. Stahl, in their capacity as Trustees of The LT-5 LiquidTrust	 	 	16.67	%	 	$	8,335,000	 	 	$	2,500,500	 	 	$	10,835,500	 
	Jeffrey S. Hinkle and John A. Stahl, in their capacity as Trustees of The LT-7 LiquidTrust	 	 	16.67	%	 	$	8,335,000	 	 	$	2,500,500	 	 	$	10,835,500	 
	Jeffrey S. Hinkle and John A. Stahl, in their capacity as Trustees of The LT-8 LiquidTrust	 	 	16.66	%	 	$	8,330,000	 	 	$	2,499,000	 	 	$	10,829,000	 
	Jeffrey S. Hinkle and John A. Stahl, in their capacity as Trustees of The LT-9 LiquidTrust	 	 	16.66	%	 	$	8,330,000	 	 	$	2,499,000	 	 	$	10,829,000	 
	Total	 	 	100	%	 	$	50,000,000	 	 	$	15,000,000	 	 	$	65,000,000	 

 

    Schedule II

     

    

 

Schedule III

 

LIST OF COLLECTIVE COLLATERAL TRUSTS

 

Jeffrey S. Hinkle and John A. Stahl, in their capacity as Trustees
of the following trusts:

 

THE LT-1 COLLECTIVE COLLATERAL TRUST

 

THE LT-2 COLLECTIVE COLLATERAL TRUST

 

THE LT-3 COLLECTIVE COLLATERAL TRUST

 

THE LT-4 COLLECTIVE COLLATERAL TRUST

 

THE LT-5 COLLECTIVE COLLATERAL TRUST

 

THE LT-6 COLLECTIVE COLLATERAL TRUST

 

THE LT-7 COLLECTIVE COLLATERAL TRUST

 

THE LT-8 COLLECTIVE COLLATERAL TRUST

 

THE LT-9 COLLECTIVE COLLATERAL TRUST

 

    Schedule III

     

    

 

Schedule IV

 

LIST
OF EXISTING LIENS 

 

None.

 

 

 

 

 

 

 

 

 

 

 

    Schedule IV

     

    

 

Schedule V

METHODOLOGY AND PROCEDURE FOR USE OF
PROCEEDS OF LOAN

 

[ *** ]

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