Document:

BIOS-EX10.29--10K/A

Exhibit 10.29
EXECUTION COPY

SECOND AMENDMENT AND CONSENT
TO
SECOND AMENDED AND RESTATED CREDIT AGREEMENT
THIS SECOND AMENDMENT AND CONSENT, dated as of June 29, 2012 (“Amendment”), to the Second Amended and Restated Credit Agreement, dated as of March 25, 2010, as amended and restated as of December 28, 2010 and as further amended and restated as of March 17, 2011 (as so amended and restated, and as further amended, supplemented or otherwise modified from time to time, the “Credit Agreement”), among BIOSCRIP, INC., a Delaware corporation (the “Borrower”), the Subsidiary Guarantors (as defined in the Credit Agreement), certain of the Lenders (as defined below) and HEALTHCARE FINANCE GROUP, LLC, as administrative agent for the Lenders and as collateral agent for the Secured Parties (in such capacities, the “Agent”), and as collateral manager.
The Borrower, the Subsidiary Guarantors, the financial institutions from time to time party to the Credit Agreement (the “Lenders”), the Agent and certain other parties are party to the Credit Agreement.
The Borrower has requested that the Lenders and the Agent (i) amend the negative covenants to permit certain Investments under the Credit Agreement and (ii) consent to certain Investments made prior to the date hereof, and the Lenders and the Agent have agreed to such amendments and consents, on the terms and subject to the conditions set forth herein.
Accordingly, in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:
1.Defined Terms.  Unless otherwise specifically defined herein, all capitalized terms used herein shall have the respective meanings ascribed to such terms in the Credit Agreement.

2.Amendments To Credit Agreement.       Effective as of the Effective Date (as defined below), the Credit Agreement is amended as follows:
(a)     Section 6.04(a) of the Credit Agreement is amended and restated in its entirety to read as follows:
“(a)     loans and advances to Effingo LLC, a Florida limited liability company, on or after the date hereof in an aggregate amount not to exceed $3,000,000;”
(b)         Section 6.04(n) of the Credit Agreement is amended and restated in its entirety to read as follows:
“(n)    Investments made by Borrower or any Subsidiary in any Permitted Joint Venture on or after the date hereof in an aggregate amount not to exceed $5,000,000 for each such Investment and related series of Investments (or, with respect to the Investments by Borrower in MyTeleHealth Solutions, LLC, a Delaware limited liability company (solely to the extent it is a Permitted Joint Venture), an aggregate amount not to exceed $15,000,000), and $20,000,000 in the aggregate for all such Investments; provided, that (x) if permitted under the documents related to such Permitted Joint Venture, the equity held by any Company, or (y) if not permitted, all proceeds and distributions payable to Borrower or any Subsidiary with respect to such Permitted Joint Venture, in either case, shall be 

    

pledged to the Administrative Agent in a manner reasonably acceptable to the Administrative Agent.”
3.Consent.  Subject to the satisfaction of the conditions precedent set forth in Section 4 hereof and in reliance on the accuracy of the representations and warranties set forth herein, the Agent and the Required Lenders hereby consent to the making by Borrower of certain Investments prior to the date hereof to the extent such Investments are permitted under the provisions of Section 6.04 of the Credit Agreement after giving effect to amendments thereto contained in section 2 above, and agree that no Default or Event of Default shall be deemed to have occurred as a result of the making of such Investments prior to the date hereof.
4.Condition Precedent.  This Amendment shall become effective upon (i) the Agent’s receipt of this Amendment duly executed and delivered by the Borrower, the Subsidiary Guarantors, the Required Lenders and the Agent; and (ii) the Borrower shall have delivered to the Agent (a) the original promissory note evidencing the Investment by Borrower in Effingo LLC, accompanied by instruments of transfer or assignment undated and duly executed in blank and (b) the original promissory note evidencing the Investment (in the form of loans) by Borrower in MyTeleHealth Solutions, LLC, accompanied by instruments of transfer or assignment undated and duly executed in blank.
5. Representations and Warranties.  The Borrower and each of the Loan Parties represents and warrants as of the date hereof as follows (which representations and warranties shall survive the execution and delivery of this Amendment):

(a)         This Amendment and the consummation of the transactions contemplated hereby are within such Loan Party’s powers and have been duly authorized by all necessary corporate or other organizational action on the part of such Loan Party. This Amendment has been duly executed and delivered by each Loan Party and constitutes a legal, valid and binding obligation of such Loan Party, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether considered in a proceeding in equity or at law.

(b)         This Amendment and the consummation of the transactions contemplated hereby (i) do not require any consent or approval of, registration or filing with, or any other action by, any Governmental Authority, except such as have been obtained or made and are in full force and effect or consents, approvals, registrations, filings, Permits or actions the failure of which to obtain or perform could not reasonably be expected to result in a Material Adverse Effect, (ii) will not violate the Organizational Documents of any Loan Party, (iii) will not violate or result in a default or require any consent or approval under (w) any Senior Note Documents, (x) any other indenture, agreement, or other instrument binding upon any Loan Party or its property or to which any Loan Party or its property is subject, or give rise to a right thereunder to require any payment to be made by any Loan Party, except for violations, defaults or the creation of such rights that could not reasonably be expected to result in a Material Adverse Effect or (y) any Organizational Document, (iv) will not violate any material Legal Requirement in any material respect and (v) will not result in the creation or imposition of any Lien on any property of any Loan Party.

(c)         After giving effect to this Amendment, each of the representations and warranties made by any Loan Party set forth in Article III of the Credit Agreement or in any other Loan Document are true and correct in all material respects (or true and correct in all respects in the case of representations and warranties qualified by materiality or Material Adverse Effect) on and as of the date hereof with the same effect as though made on and as of such date, except to the 

60786013.DOC

extent such representations and warranties expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects (or true and correct in all respects in the case of representations and warranties qualified by materiality or Material Adverse Effect) on and as of such earlier date).

(d)          After giving effect to this Amendment, no Default or Event of Default shall have occurred and be continuing on such date.

(e)         MyTeleHealth Solutions, LLC is a Permitted Joint Venture.

6.Costs and Expenses.  The Loan Parties agree, jointly and severally, to pay, promptly upon demand all reasonable costs and expenses incurred by the Agent, including the reasonable fees, charges and disbursements of Advisors for the Agent, in connection with the preparation, negotiation, execution and delivery of this Amendment.
7.Continued Effectiveness.  Except for the amendments set forth in Section 2 hereof and the consent set forth in Section 3 hereof, nothing herein shall be deemed to be an amendment or waiver of any covenant or agreement contained in the Credit Agreement or any other Loan Document and each of the parties hereto agrees that all of the covenants and agreements and other provisions contained in the Credit Agreement and the other Loan Documents, as amended or otherwise consented to  herein, are hereby ratified and confirmed in all respects and shall remain in full force and effect in accordance with their terms from and after the date of this Amendment.  This Amendment constitutes a Loan Document under the Credit Agreement.   The terms “Agreement”, “hereof”, “herein” and similar terms as used in the Credit Agreement and each reference in the other Loan Documents to “the Credit Agreement” “thereunder,” “thereof” or words of like import referring to the Credit Agreement shall mean and refer to, from and after the effectiveness of this Amendment, the Credit Agreement as amended by this Amendment, and as it may in the future be amended, restated, modified or supplemented from time to time in accordance with its terms.  This Amendment shall constitute a Loan Documents under the Credit Agreement.  
8.Ratification.  Each Subsidiary Guarantor hereby approves and consents to this Amendment and agrees and affirms that the Guarantees of the Guaranteed Obligations continues to be in full force and effect and is hereby ratified and confirmed in all respects.   Each of the Loan Parties hereby ratifies and confirms the grant of the security interest in and the Liens on its Collateral in favor of the Agent contained in the Security Documents to which it is a party.
9.Counterparts.  This Amendment may be executed in counterparts (and by different parties hereto on different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract.  Delivery of an executed counterpart of a signature page of this Amendment by telecopy or other electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.
10.Governing Law.  THIS AMENDMENT SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO CONFLICTS OF LAW PRINCIPLES THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.
11.Captions.  The captions used herein are for convenience of reference only, are not part of this Amendment and shall not affect the construction of, or be taken into consideration in interpreting, this Amendment.

60786013.DOC

12.Severability.  Any provision of this Amendment held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.     

[Remainder of Page Intentionally Left Blank]

IN WITNESS WHEREOF, the parties hereto have caused this Consent to be duly executed by their respective officers thereunto duly authorized as of the day and year first above written.

BIOSCRIP, INC., as Borrower 

		
	By:     /s/ Richard Smith
	 
Name:    Richard Smith 
Title:    President and CEO

EACH SUBSIDIARY GUARANTOR SET 
FORTH ON ANNEX A

		
	By:     /s/ Richard Smith
	 
Name:    Richard Smith 
Title:    Authorized Officer

HEALTHCARE FINANCE GROUP, LLC,
as Sole Lead Arranger, Administrative Agent, Collateral Agent and Collateral Manager

		
	By:  
	/s/ John Calabro        

Name:    John Calabro 
Title:    EVP

HFG HEALTHCO-4 LLC, 
as a Lender and as  Swingline Lender
By: Master Healthco, LLC, its member

By:     /s/ John D. Calabro            
Name:    John D. Calabro 
Title:    Executive Vice President

WELLS FARGO CAPITAL FINANCE, LLC, 
as a Lender, Documentation Agent and as Issuing Bank

By:     /s/ Dennis King            
Name:    Dennis King 
Title:    Vice President
SIEMENS FINANCIAL SERVICES, INC., 
as a Lender

By:     /s/ Jeffrey B. Iervese        
Name:    Jeffrey B. Iervese 
Title:    Vice President

By:     /s/ John Finore            
Name:    John Finore 
Title:    Vice President
GE CAPITAL FINANCIAL INC., as a Lender

By:     /s/ Heather L. Glade        
Name:    Heather-Leigh Glade 
Title:    Duly Authorized Signatory

Annex A

Subsidiary Guarantors

BioScrip Infusion Services, Inc.
Chronimed, LLC
BioScrip Pharmacy, Inc.
Bradhurst Specialty Pharmacy, Inc.
BioScrip Pharmacy (NY), Inc.
BioScrip PBM Services, LLC
Natural Living, Inc. 
BioScrip Infusion Services, LLC
BioScrip Nursing Services, LLC
BioScrip Infusion Management, LLC
BioScrip Pharmacy Services, Inc.
CHS Holdings, Inc. 
Critical Homecare Solutions, Inc.
Applied Health Care, LLC
Cedar Creek Home Health Care Agency, Inc.
Deaconess Enterprises, LLC
Deaconess HomeCare, LLC
East Goshen Pharmacy, Inc.
Elk Valley Health Services, Inc.
Elk Valley Home Health Care Agency, Inc.
Elk Valley Professional Affiliates, Inc.
Gericare, Inc.
Infusion Partners, LLC
Infusion Partners of Brunswick, LLC
Infusion Partners of Melbourne, LLC
Infusion Solutions, Inc.
Knoxville Home Therapies, LLC
National Health Infusion, Inc.
New England Home Therapies, Inc.
Option Health, Ltd.
Professional Home Care Services, Inc.
Regional Ambulatory Diagnostics, Inc.
Scott-Wilson, Inc.
South Mississippi Home Health, Inc.
South Mississippi Home Health, Inc. – Region I
South Mississippi Home Health, Inc. – Region II
South Mississippi Home Health, Inc. – Region III
Specialty Pharma, Inc.
Wilcox Medical, Inc.

60786013.DOCExhibit 10.1

 

LAPOLLA INDUSTRIES, INC.

$7,200,000 SUBORDINATED SECURED

FIXED RATE NOTES

_____________________________

NOTE PURCHASE AGREEMENT

_____________________________

DATED AS OF DECEMBER 10, 2013

     

     

    

NOTE PURCHASE AGREEMENT

THIS NOTE PURCHASE
AGREEMENT (this “Agreement”), dated as of December 10, 2013, is between LAPOLLA INDUSTRIES, INC., a Delaware
corporation (the “Borrower”), ENHANCED JOBS FOR TEXAS FUND, LLC, a Delaware limited liability company (“Enhanced
Texas”), and ENHANCED CREDIT SUPPORTED LOAN FUND, LP, a Delaware limited partnership (“Enhanced Credit,”
and together with Enhanced Texas and any Assignee, each a “Purchaser” and together the “Purchasers”).

RECITALS

WHEREAS, the Borrower
has proposed selling to the Purchasers those certain subordinated secured promissory notes to be issued pursuant hereto, the proceeds
from the sale of such notes to be used as set forth herein.

WHEREAS, the Purchasers
are willing to purchase such notes on the terms and subject to the conditions set forth in this Agreement.

AGREEMENT

NOW, THEREFORE,
in consideration of the covenants and agreements set forth herein and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

ARTICLE
I.

DEFINITIONS AND ACCOUNTING TERMS

Section 1.1           
Defined Terms. The following terms (whether or not underscored) when used in this Agreement, including its introductory
paragraph and recitals, shall, except where the context otherwise requires, have the following meanings:

“Affiliate”
means with respect to any Person, another Person that, directly or indirectly, Controls or is Controlled by or is under common
Control with the Person specified. “Control” and correlative terms means the possession, directly or indirectly,
of the power to direct or cause the direction of the management or policies of a Person, whether through the ability to exercise
voting power, by contract or otherwise.

“Agent”
means Enhanced Credit or any successor to Enhanced Credit pursuant to Section 9.6.

“Aggregate
Interest Rate” has the meaning assigned to that term in Section 2.4(a).

“Agreement”
has the meaning given to that term in the introductory paragraph hereof, as amended, restated or otherwise modified from time to
time thereafter in accordance with its terms.

“Asset
Disposition” means any sale, assignment, lease, conveyance, transfer or other disposition by the Borrower (whether in
one or a series of transactions) of all or any of its assets, business or other properties having a book value, or for consideration,
in excess of $100,000 in any individual case or $250,000 in the aggregate during any calendar year, other than pursuant to a Casualty
Event; provided that the following shall not be deemed to be Asset Dispositions for purposes of this Agreement: (i) the sale or
other disposition of inventory and Cash Equivalents in the ordinary course of business, (ii) non-exclusive licenses of intellectual
property in the ordinary course of business, (iii) the sale, discount or write-off of past due or impaired accounts receivable
for collection purposes (but not for factoring, securitization or other financing purposes), and (iv) the sale, exchange or other
disposition in the ordinary course of business of equipment or other fixed assets that are obsolete, damaged, worn out or no longer
necessary for the operations of the Borrower.

“Authorized
Officer” means, with respect to any action specified herein to be taken by or on behalf of the Borrower, any officer
of the Borrower duly authorized by resolution of its Board to take such action on its behalf, and whose signature and incumbency
shall have been certified to the Purchaser by the secretary or an assistant secretary of the Borrower.

“Bankruptcy
Code” has the meaning assigned to that term in Section 8.1(f).

“Benefit
Plan” means any employee benefit plan as defined in Section 3(3) of ERISA (whether governed by the laws of the United
States or otherwise) to which the Borrower incurs or otherwise has any obligation or liability, contingent or otherwise.

“Board”
means the board of directors of the Borrower.

“Borrower”
has the meaning assigned to that term in the introductory paragraph hereof.

“Business
Day” means any day which is neither a Saturday nor Sunday nor a legal holiday on which banks are authorized or required
to be closed in New York, New York or Houston, Texas.

“Canadian
Sales” means all sales of goods or services by Borrower to residents of Canada or with respect to which the sales price
is payable by residents of Canada.

“Capital
Expenditures” means all liabilities incurred or expenditures made by Borrower or a Subsidiary for the
acquisition of fixed assets, or any improvements, replacements, substitutions or additions thereto with a useful life of more than
one year.

“Capital
Stock” of any Person means any and all shares, interests, rights to purchase, warrants, options, participations or other
equivalents of or interests in (however designated) the common or preferred equity or other equity or preference share capital
of such Person.

“Capitalized
Lease Liabilities” of any Person means all monetary obligations of such Person under any leasing or similar arrangement
which, in accordance with GAAP, would be classified as a capitalized lease, and, for purposes of this Agreement and each other
Loan Document, the amount of such obligations shall be the capitalized amount thereof, determined in accordance with GAAP, and
the stated maturity thereof shall be the date of the last payment of rent or any other amount due under such lease prior to the
first date upon which such lease may be terminated by the lessee without payment of a penalty.

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

“Casualty
Event” means, with respect to any property (including any interest in property) of the Borrower, any loss of, damage
to, or condemnation or other taking of, such property for which the Borrower receives insurance proceeds, proceeds of a condemnation
award or other compensation.

“Change
of Control” means that (a) the Personal Guarantor and his Family Group fails to own and control, directly or indirectly,
at least a majority of the Capital Stock of Borrower having the right to vote for the election of members of the Board provided
that Capital Stock transferred by the Personal Guarantor or his Family Group to a Permitted Holder shall be deemed to be held by
the Personal Guarantor for purposes of this clause, or (b) any “person” or “group” (within the meaning
of Sections 13(d) and 14(d) of the Exchange Act), other than Permitted Holders, becomes the beneficial owner (as defined in Rule
13d-3 under the Exchange Act), directly or indirectly, of 30% or more of the Capital Stock of Borrower having the right to vote
for the election of members of the Board.

“Closing”
has the meaning assigned to that term in Section 2.2(b).

“Closing
Date” has the meaning assigned to that term in Section 2.2(b).

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

“Collateral”
means all property, real or personal, with respect to which a Lien has been granted to or for the benefit of the Agent pursuant
to the Security Agreement or any of the other Loan Documents or which otherwise secures the payment or performance of any Obligation.

“Contingent
Liability” means any agreement, undertaking, or arrangement by which any Person guarantees, endorses or otherwise becomes
or is contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply
funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, obligation or
any other liability of any other Person (other than by endorsements of instruments in the course of collection), or guarantees
the payment of dividends or other distributions upon the Capital Stock of any other Person. The amount of any Person’s obligation
under any Contingent Liability shall (subject to any limitation set forth therein) be deemed to be the outstanding principal amount
(or maximum principal amount, if larger) of the debt, obligation or other liability guaranteed thereby.

“Corporate
Guarantors” means Forest Hill Terrace Associates, L.P., a New Jersey limited partnership, and Forest Hill Terrace Associates,
GP, LLC a New Jersey limited liability company.

“Corporate
Guaranty Agreement” means the guaranty between the Corporate Guarantors and Agent dated as of the Closing Date, as amended,
supplemented, extended, modified or restated from time to time.

“Current
Pay Interest” has the meaning assigned to that term in Section 2.4(a).

“Default”
means any Event of Default or any condition, occurrence or event which, after notice or lapse of time or both, would constitute
an Event of Default.

“Default
Rate” has the meaning assigned to that term in Section 2.4(b).

“Disclosure
Schedules” has the meaning assigned to that term in Article IV.

“Distribution”
means any declaration or payment of a distribution, interest or dividend on any Capital Stock (other than payment-in-kind); any
distribution, advance or repayment of Indebtedness to a holder of Capital Stock; or any purchase, redemption, or other acquisition
or retirement for value of any Capital Stock.

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

“EBITDA”
means for any Person for any period, determined on a consolidated basis, net income, calculated before interest expense, provision
for income taxes, depreciation and amortization expense, non-cash stock-based compensation expense, gains or losses arising from
the sale of capital assets, gains or losses arising from the write-up or write-down of assets, and any extraordinary gains (in
each case, to the extent included in determining net income).

“Enhanced
Capital Texas” means Enhanced Capital Texas Fund, LP, a Texas limited partnership.

“Enhanced
Indebtedness” means Indebtedness of the Borrower pursuant to the Enhanced Note Purchase Agreement.

“Enhanced
Note Purchase Agreement” means that certain Note Purchase Agreement dated as of June 29, 2012 between Enhanced Capital
Texas, the Borrower, and Enhanced Texas, as amended.

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended from time
to time, and any regulations promulgated thereunder.

“ERISA
Affiliate” means, with respect to the Borrower, any trade or business (whether or not incorporated) that, together with
the Borrower, are treated as a single employer within the meaning of Sections 414(b),
(c), (m) or (o) of the Code. 

“ERISA
Event” means, with respect to the Borrower or any ERISA Affiliate, any of the following: (a) a reportable event described
in Section 4043(b) of ERISA (or, unless the 30-day notice requirement has been duly waived under the applicable regulations, Section
4043(c) of ERISA) with respect to a Title IV Plan; (b) the withdrawal of any ERISA Affiliate from a Title IV Plan subject to Section
4063 of ERISA during a plan year in which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (c) the complete
or partial withdrawal of any ERISA Affiliate from any Multiemployer Plan; (d) with respect to any Multiemployer Plan, the filing
of a notice of reorganization, insolvency or termination (or treatment of a plan amendment as termination) under Section 4041A
of ERISA; (e) the filing of a notice of intent to terminate a Title IV Plan (or treatment of a plan amendment as termination) under
Section 4041 of ERISA; (f) the institution of proceedings to terminate a Title IV Plan or Multiemployer Plan by the PBGC; (g) the
failure to make any required contribution to any Title IV Plan or Multiemployer Plan when due; (h) the imposition of a lien under
Section 412 of the Code or Section 302 or 4068 of ERISA on any property (or rights to property, whether real or personal) of any
ERISA Affiliate; (i) the failure of a Benefit Plan or any trust thereunder intended to qualify for tax exempt status under Section
401 or 501 of the Code or other requirements of any applicable law to qualify thereunder; and (j) any other event or condition
that might reasonably be expected to constitute grounds under Section 4042 of ERISA for the termination of, or the appointment
of a trustee to administer, any Title IV Plan or Multiemployer Plan or for the imposition of any liability upon any ERISA Affiliate
under Title IV of ERISA other than for PBGC premiums due but not delinquent.

“Event
of Default” has the meaning assigned to that term in Section 8.1.

“Family
Group” means (i) the Personal Guarantor’s spouse and descendants, (ii) any trust or similar vehicle established
and maintained solely for the benefit of the Personal Guarantor, the Personal Guarantor’s spouse and/or the Personal Guarantor’s
descendants, and (iii) any partnership or limited liability company whose partners or members consists solely of the Personal Guarantor,
the Personal Guarantor’s spouse and/or the Personal Guarantor’s descendants; provided that in each case the Personal
Guarantor retains voting control over the Capital Stock of the Company held by the Family Group.

“Financial
Covenant Compliance Certificate” means a certificate substantially in the form attached as Exhibit B.

“Fixed
Charge Coverage Ratio” means the ratio, determined for
any period on a consolidated basis for Borrower and Subsidiaries, of (a) EBITDA to (b) the sum of Capital Expenditures (except
those financed with Indebtedness other than Senior Indebtedness), cash taxes paid, interest expense (other than payment-in-kind
or non-cash interest included in interest expense), principal payments made on Indebtedness (other than with respect to Revolver
Loans (as defined in the Senior Credit Agreement)), and Distributions made, in each case determined for such period; provided that
principal payments made with respect to the Enhanced Indebtedness during December 2013 in an amount up to $150,000 shall not be
included in the calculation of the Fixed Charge Coverage Ratio.

“GAAP”
has the meaning assigned to that term in Section 1.3.

“Governmental
Authority” means any nation, country, commonwealth, territory, state, county, parish, municipality or any political subdivision,
agency, department, commission, board or other instrumentality of any of the foregoing.

“Guarantors”
means the Corporate Guarantors and the Personal Guarantor.

“Guaranty
Agreements” means the Personal Guaranty Agreement and the Corporate Guaranty Agreement.

“herein”,
“hereof”, “hereto”, “hereunder” and similar terms contained in this Agreement
or any other Loan Document refer to this Agreement or such other Loan Document, as the case may be, as a whole and not to any particular
Article, Section, paragraph or provision of this Agreement or such other Loan Document.

“including”
means including without limiting the generality of any description preceding such term.

“Indebtedness”
of any Person means, without duplication:

(a)all obligations
of such Person for borrowed money and all obligations of such Person evidenced by bonds, debentures, notes or other similar instruments;

(b)all obligations,
contingent or otherwise, relative to the face amount of all letters of credit, whether or not drawn, and banker’s acceptances
issued for the account of such Person;

(c)all obligations
of such Person as lessee under leases which have been or should be, in accordance with GAAP, recorded as Capitalized Lease Liabilities;

(d)all other items
which, in accordance with GAAP, would be included as liabilities on the liability side of the balance sheet of such Person as of
the date at which Indebtedness is to be determined (other than trade payables incurred in the ordinary course of business and repayable
in accordance with customary trade practices);

(e)whether or
not so included as liabilities in accordance with GAAP, all obligations of such Person to pay the deferred purchase price of property
or services (other than trade payables incurred in the ordinary course of business and repayable in accordance with customary trade
practices), and indebtedness (excluding prepaid interest thereon) secured by a Lien on assets or property owned or being purchased
by such Person (including indebtedness arising under conditional sales or other title retention agreements), whether or not such
indebtedness shall have been assumed by such Person or is limited in recourse;

(f)the maximum
fixed redemption or repurchase price of all Capital Stock of such Person which is subject to redemption otherwise than at the sole
option of such Person; and

(g)all Contingent
Liabilities of such Person in respect of any of the foregoing.

“Intellectual
Property” means (i) all inventions (whether or not patentable and whether or not reduced to practice), all improvements
thereto, and all patents, patent applications, and patent disclosures, together with all reissues, continuations, continuations-in-part,
divisions, revisions, extensions, and reexaminations thereof, (ii) all trademarks, service marks, trade dress, logos, trade
names, and corporate names, together with all goodwill associated therewith, and all applications, registrations, and renewals
in connection therewith, (iii) all copyrightable works and all copyrights (registered and unregistered), (iv) all trade
secrets and confidential information (including, without limitation, financial, business and marketing plans and customer and supplier
lists and related information), (v) all computer software and software systems (including, without limitation, data, databases
and related documentation), (vi) all Internet web sites and domain names, (vii) all technology, know-how, processes and
other proprietary rights, and (viii) all licenses or other agreements to or from third parties regarding any of the foregoing.

“Intercreditor
Agreement” means that certain Intercreditor Agreement dated as of the Closing Date between Borrower, Agent, and Senior
Lender.

“Liens”
has the meaning assigned to that term in Section 7.10.

“Liquidity”
means, (a) prior to the termination of the Senior Credit Agreement, “Availability” as such term is defined in the Senior
Credit Agreement and (b) following the termination of the Senior Credit Agreement, the sum of (i) the amount of unencumbered cash
held by the Borrower at such time plus (ii) Cash Equivalents.

“Liquidity
Transaction” shall mean any of the following transactions: (a) a registered secondary offering of the Borrower’s
common stock pursuant to a registration statement declared effective under the Securities Act of 1933, as amended; (b) a Sale of
the Company; (c) the liquidation of the Borrower; (d) a transfer of the Property, whether for consideration or otherwise,
or execution of any agreement to transfer the Property; or (e) a Change of Control.

“Loan Amount”
means the principal amount of all outstanding Notes.

“Loan Documents”
means (a) this Agreement; (b) the Notes; (c) the Security Agreement; (d) the Intercreditor Agreement; (e) the Guaranty Agreements;
(f) the Pledge Agreement; (g) the Personal Guarantor Subordination Agreement; and (h) all other certificates, documents, agreements,
and instruments delivered under or in connection with this Agreement.

“Material
Adverse Effect” means any event or condition that, individually or in the aggregate, has had or would reasonably be expected
to have a materially adverse effect on the assets, liabilities, condition (financial or otherwise), business or prospects of an
Obligor or the ability of an Obligor to pay and perform its obligations under this Agreement, the Notes or any other Loan Document
or an impairment in the perfection or priority of the Agent’s security interest in the Collateral or in the value of material
Collateral.

“Maturity
Date” means December 10, 2016, or such earlier date on which the Notes become due and payable pursuant to Sections
2.5, 8.2 or 8.3.

“Monthly
Payment Date” has the meaning assigned to that term in Section 2.4(a).

“Mortgage”
means that certain Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing executed by Forest Hill Terrace
Associates, L.P. and placed in escrow as of the date hereof.

“Mortgage
Escrow Agreement” means that certain Mortgage Escrow Agreement by and among Forest Hill Terrace Associates, L.P., Agent,
and GRS Title Services, LLC.

“Multiemployer
Plan” means a “multiemployer plan” as defined in Section 4001(a)(3) of ERISA, and to which the Borrower or
ERISA Affiliate is making, is obligated to make or has made or been obligated to
make, contributions on behalf of participants who are or were employed by
any of them.

“Net Proceeds”
means (i) cash proceeds received by the Borrower from any Asset Disposition or Casualty Event (including insurance proceeds and
awards of condemnation in connection with any Casualty Event and payments under notes or other debt securities received in connection
with any Asset Disposition), net of (a) the costs of such Asset Disposition (including taxes attributable to such sale, lease or
transfer) and any commissions and other customary transaction fees, costs and expenses), other than any costs payable to any Affiliate
of the Borrower, (b) amounts applied to repayment of Indebtedness (other than the Obligations) secured by a Lien permitted under
this Agreement on the asset or property disposed, and (c) any amounts required to be held in escrow until such time as such amounts
are released from escrow whereupon such amounts shall be considered Net Proceeds, and (ii) cash proceeds attributable to any working
capital, earnings, balance sheet or similar adjustment under any acquisition agreement.

“Net Value”
means the fair market value of an asset (as determined by the Agent) net of any Liens against such asset (other than Liens in favor
of Agent).

“Notes”
means the subordinated secured promissory notes described in Article II, as amended, supplemented, extended, modified or
restated from time to time.

“Obligations”
means all obligations (monetary or otherwise) of the Borrower arising under or in connection with this Agreement, the Notes, and
each other Loan Document.

“Obligor”
means each of the Borrower and the Guarantors.

“PBGC”
means the Pension Benefit Guaranty Corporation.

“Pension Plan”
means a Plan described in Section 3(2) of ERISA.

“Permitted
Holders” means the Personal Guarantor and his Family Group and registered holders of the Capital Stock of Borrower as
of the most recent determination prior to the Closing Date.

“Permitted
Indebtedness” means (a) the Senior Indebtedness, (b) the Enhanced Indebtedness, (c) the Obligations, (d) Indebtedness
existing on the Closing Date and set forth on the Perfection Certificate delivered by the Borrower at Closing, and (e) Subordinated
Debt.

“Permitted
Investments” are:

Investments
consisting of Cash Equivalents;

Investments
consisting of the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course
of the Borrower;

Investments
consisting of (i) travel advances and employee relocation loans and other employee loans and advances in the ordinary course of
business, and (ii) loans to employees, officers or directors relating to the purchase of equity securities of the Borrower or its
Subsidiaries allowed under this Agreement;

Investments
(including debt obligations) received in connection with the bankruptcy or reorganization of customers or suppliers and in settlement
of delinquent obligations of, and other disputes with, customers or suppliers arising in the ordinary course of business;

Investments
accepted in connection with Asset Dispositions permitted hereunder; and

Investments
consisting of notes receivable of, or prepaid royalties and other credit extensions, to customers and suppliers who are not Affiliates,
in the ordinary course of business.

“Permitted
Issuances” means the issuance of any shares of Capital Stock (a) to future employees of the Borrower for compensation
and incentive purposes, or (b) to raise equity capital from Permitted Holders.

“Permitted
Liens” has the meaning assigned to that term in Section 7.10.

“Person”
means any natural person, corporation, limited liability company, firm, association, government, governmental agency or any other
entity, whether acting in an individual, fiduciary or other capacity.

“Personal
Guarantor” means Richard J. Kurtz.

“Personal
Guarantor Subordination Agreement” means the subordination agreement between the Personal Guarantor and Agent dated as
of the Closing Date, as amended, supplemented, extended, modified or restated from time to time.

“Personal
Guaranty Agreement” means the guaranty between the Personal Guarantor and Agent dated as of the Closing Date, as amended,
supplemented, extended, modified or restated from time to time.

“PIK Interest”
has the meaning assigned to that term in Section 2.4(a).

“Plan”
means, at any time, an “employee benefit plan,” as defined in Section 3(3) of ERISA, that the Borrower or ERISA Affiliate
maintains, contributes to or has an obligation to contribute to on behalf of participants
who are or were employed by the Borrower.

“Pledge Agreement”
means the pledge agreement between the Personal Guarantor and the Agent dated as of the Closing Date, as amended, supplemented,
extended, modified or restated from time to time.

“Principal
Business Operations State” means the State that 80% of (i) the Borrower’s employees reside or (ii) payroll is paid
to employees of such State.

“Property”
has the meaning assigned to such term in the Mortgage.

“Purchaser”
has the meaning assigned to that term in the introductory paragraph hereof.

“Required
Intellectual Property” has the meaning assigned to that term in Section 4.14.

“Requisite
Purchasers” means the Purchaser or Purchasers holding Notes representing more than 50% of the aggregate principal amount,
at such time, of all outstanding Notes.

“Responsible
Officer” means, with respect to the Borrower, the president, the chief executive officer, the chief financial officer,
and any other officer or similar official thereof responsible for the administration of the obligations of the Borrower in respect
of this Agreement or any other Loan Document.

“Restricted
Securities” means the Notes issued hereunder. As to any particular Restricted Securities, such securities will cease
to be Restricted Securities when they have (a) been effectively registered under the Securities Act and disposed of in accordance
with the registration statement covering them, (b) become eligible for sale pursuant to Rule 144 (or any similar provision then
in force) under the Securities Act or (c) been otherwise transferred and new certificates for them not bearing the Securities Act
legend set forth in Section 5.4(a) have been delivered by the Borrower.

“Sale of
the Company” means a sale, transfer or other disposition of all or substantially all of the Borrower’s assets,
whether through a sale of equity, a merger, a sale of assets, or otherwise.

“Security
Agreement” means the Security Agreement executed and delivered by the Borrower pursuant to Article III, as amended,
supplemented, restated or otherwise modified from time to time.

“Security
Documents” means the Security Agreement and all other pledge or security agreements, mortgages, assignments or other
similar agreements or instruments executed and delivered by the Borrower pursuant to any provision hereunder or otherwise in connection
with the transactions contemplated hereby, in each case as amended, modified, restated or supplemented from time to time.

“Senior
Credit Agreement” means that certain Loan and Security Agreement dated as of August 31, 2010, between the Senior Lender
and the Borrower, as amended, supplemented, extended, modified or restated from time to time.

“Senior
Indebtedness” means Indebtedness of the Borrower pursuant to the Senior Credit Agreement.

“Senior
Lender” means Bank of America, National Association, and its successors and assigns.

“Solvent”
means, with respect to any Person, that, as of the applicable date of determination, (a) the fair saleable value of the assets
of such Person, as of such date, exceeds the sum of (i) all liabilities of such Person, as of such date, plus (ii) the amount
that will be required to pay the probable liabilities of such Person on its existing debts as such debts become absolute and matured,
(b) such Person will not have, as of such date, an unreasonably small amount of capital for the operation of the businesses in
which it is engaged or proposed to be engaged following such date and (c) such Person does not intend to incur or believe that
it will incur debts beyond its ability to pay as such debts mature.

“Subordinated
Debt” means all Indebtedness for borrowed money which is subordinated, upon terms satisfactory to the Agent, in right
of payment to the payment in full in cash of all Obligations.

“Subsidiary”
means any Person, corporation, partnership, limited liability company, joint venture, or any other business entity of which more
than 50% of the voting stock or other equity interests is owned or controlled, directly or indirectly, by the Borrower.

“Title
IV Plan” means a Pension Plan (other than a Multiemployer Plan), that is covered by Title IV of ERISA, and that the Borrower
or ERISA Affiliate maintains, contributes to or has an obligation to contribute
to on behalf of participants who are or were employed by any of them.

“Transactions”
means, collectively, the transactions contemplated by the Loan Documents to occur on or substantially simultaneously with the Closing
Date, including (i) the loans made hereunder on the Closing Date and (ii) the payment of permitted fees and expenses
in connection with the foregoing.

“United
States” or “U.S.” means the United States of America.

Section 1.2           
Cross-References. Unless otherwise specified, references in this Agreement and in each other Loan Document to any
Article or Section are references to such Article or Section of this Agreement or such other Loan Document, as the case may be,
and, unless otherwise specified, references in any Article, Section or definition to any clause are references to such clause of
such Article, Section or definition.

 

Section 1.3           
Accounting and Other Terms. All accounting terms not specifically defined herein shall be construed in accordance
with U.S. generally accepted accounting principles (“GAAP”). This Agreement and the other Loan Documents shall
be construed without regard to any presumption or rule requiring construction against the party causing any such document or any
portion thereof to be drafted. Any page footers or headers or similar word processing, document or page identification numbers
in this Agreement or any index or exhibit are for convenience of reference only and shall not limit or otherwise affect any of
the terms of this Agreement, nor shall there be any requirement that any such footers or other numbers be consistent from page
to page. Any pronoun used herein shall be deemed to cover all genders. Defined terms used in this Agreement may be set forth in
Section 1.1 or other Sections of this Agreement, and all such definitions defined in the singular shall have a corresponding
meaning when used in the plural or vice versa.

ARTICLE
II.

NOTEs

Section 2.1           
Authorization and Issuance of the Notes. Subject to the terms and conditions of this Agreement, the Borrower has
authorized the sale and issuance to the Purchasers of the subordinated secured promissory notes issued by the Borrower in the aggregate
principal amount of $7,200,000 to be dated as of the Closing Date, to mature on the Maturity Date, substantially in the form of
Exhibit A (the “Notes”).

Section 2.2           
Purchase and Sale of the Notes.

(a)               
General. Subject to the terms and conditions of this Agreement, and in reliance upon the representations and warranties
of the Borrower contained herein, the Borrower hereby sells to Enhanced Texas and Enhanced Texas hereby purchases from the Borrower,
a Note with a face value of $1,500,000 for a purchase price of $1,470,000 and the Borrower hereby sells to Enhanced Credit and
Enhanced Credit hereby purchases from the Borrower, a Note with a face value of $5,700,000 for a purchase price of $5,586,000.

(b)              
Closing. The closing of the issuance, purchase and sale of the Notes (the “Closing”) shall be
deemed to have taken place on December 10, 2013 (the “Closing Date”).

Section 2.3           
Repayment of Principal. Unless otherwise required or permitted to be sooner paid pursuant to this Agreement and the
Notes, the Borrower shall repay the aggregate outstanding principal amount of the Notes on the Maturity Date.

Section 2.4           
Payments of Interest.

(a)               
Base Interest Rate. Unless an Event of Default has occurred and is continuing, the outstanding principal amount of
the Notes and all other accrued but unpaid Obligations shall bear interest as set forth in this Section 2.4. The Borrower
shall pay to the holders of the Notes accrued interest in cash (the “Current Pay Interest”), on the last Business
Day of each month (the “Monthly Payment Date”), at a rate equal to 7.25% per annum. In addition to the Current
Pay Interest, accrued interest at the rate of 3.75% per annum shall be added to the principal balance of the outstanding Notes
on each Monthly Payment Date (the “PIK Interest,” and together with the Current Pay Interest, the “Aggregate
Interest Rate”), and itself shall bear interest at the Aggregate Interest Rate. All amounts of accrued PIK Interest as
of each Monthly Payment Date shall no longer be deemed to be accrued and unpaid interest on the outstanding principal of the Loan
Amount, but shall be considered principal until paid. Unless prohibited under applicable law, any accrued interest which is not
paid within 3 calendar days of the date on which it is due and payable shall bear interest at the Aggregate Interest Rate until
such time as payment therefore is actually paid to the holders of the Notes. Any accrued interest which for any reason has not
theretofore been paid shall be due and payable in full on the Maturity Date.

(b)              
Default Rate. After the occurrence and during the continuance of an Event of Default under Section 8.1(a), the Borrower
shall pay, but only to the extent permitted by law, interest on the outstanding principal amount of the Notes and all other accrued
but unpaid Obligations at a rate equal to the Aggregate Interest Rate plus 6.0% per annum (all of which shall increase the
otherwise applicable Current Pay Interest) (the “Default Rate”).

(c)               
Computation. All interest and fees chargeable under the Loan Documents shall be computed on the basis of a 360 day
year, in each case, for the actual number of days elapsed in the period during which the interest or fees accrue.

Section 2.5           
Mandatory Prepayments.

(a)               
If, at any time, there is a Liquidity Transaction, the Borrower shall prepay the Obligations, in whole but not in part.

(b)              
Subject to the Intercreditor Agreement, immediately following any of the following events, the Borrower shall prepay the
Obligations in an amount equal to (i) the Net Proceeds arising from a Casualty Event, (ii) the Net Proceeds arising from an Asset
Disposition, and (iii) the amounts paid to the Borrower or any Subsidiary of the Borrower pursuant to the issuance of Capital Stock
(other than Permitted Issuances) or Indebtedness (other than Permitted Indebtedness) following the Closing Date.

Section 2.6           
Optional Prepayments. The Borrower has the right to prepay the Notes, in whole or in part, at any time and from time
to time from after the disbursement of the applicable Note to and including the Maturity Date. Each prepayment of the Notes made
pursuant to Section 2.5 or this Section 2.6 shall include a prepayment premium equal to (i) 3.0% of the amount of
the prepayment if made on or prior to the first anniversary of the Closing Date, (ii) 2.0% of the amount of the prepayment if made
after the first anniversary of the Closing Date, and on or prior to the second anniversary of the Closing Date, and (iii) 0.0%
of the amount of the prepayment if made after the second anniversary of the Closing Date.

Section 2.7           
Use of Proceeds. The proceeds from the Note issued to Enhanced Credit shall be used to finance working capital and
repay the notes issued by the Borrower and held by Enhanced Texas and Enhanced Capital Texas Fund, L.P. The proceeds from the Note
issued to Enhanced Texas shall be used to finance working capital and pay down accounts payable.

 

Section 2.8           
Form of Payment. All payments by the Borrower pursuant to this Agreement, the Notes or any other Loan Document shall
be made by the Borrower to the applicable Purchaser, in lawful money of the United States (in freely transferable Dollars), without
setoff, deduction or counterclaim, not later than 3:00 p.m., Eastern Time, on the date due, in same day or immediately available
funds, to such account as the applicable Purchaser shall specify from time to time by notice to the Borrower. Funds received after
that time shall be deemed to have been received by the applicable Purchaser on the next succeeding Business Day. If
any payment becomes due and payable on a day other than a Business Day, the maturity thereof will be extended to the next succeeding
Business Day and, with respect to payments of principal, interest thereon shall be payable at the then applicable rate during such
extension.

Section 2.9           
Application of Payments. All payments by the Borrower pursuant to this Agreement, the Notes or any other Loan Document
shall be applied first to the fees and expenses of the Agent and the Purchasers, then to accrued but unpaid interest on the Obligations,
then to the principal balance of the Obligations then outstanding.

Section 2.10       
Saving Clause. Notwithstanding any other provision contained in this Agreement, the aggregate annual interest rate
charged with respect to the Obligations (including all charges and fees deemed to be interest pursuant to applicable law) shall
not exceed the maximum annual rate permitted by applicable law. In the event that the aggregate annual interest rate payable with
respect to the Obligations (including all charges and fees deemed to be interest under applicable laws) exceeds the maximum legal
rate, the Borrower shall only pay the Purchasers interest at the maximum permitted rate, and the Borrower shall continue to make
such interest payments at the maximum permitted rate until all amounts, fees and obligations payable hereunder and under the Notes
has been paid in full.

ARTICLE
III.

CONDITIONS PRECEDENT

Section 3.1           
Purchaser Conditions to Closing. The obligation of the Purchasers to make the loans hereunder on the Closing Date
is subject to the satisfaction of the following conditions precedent:

(a)               
The Purchasers shall have received the following, each dated as of the Closing Date (unless otherwise specified) and in
such number of copies as the Purchasers shall have reasonably requested:

(i)                
this Agreement, duly completed and executed by the Borrower;

(ii)              
the Security Agreement, duly completed and executed by the Borrower, together with evidence of the proper filing of a Form
UCC-1 statement acceptable to the Agent;

(iii)            
the opinion of McGuireWoods, LLP, counsel to the Borrower, in form and substance reasonably satisfactory to the Agent;

(iv)            
the opinion of Lawrence T. Lowen, counsel to the Corporate Guarantors and the Personal Guarantor, in form and substance
reasonably satisfactory to the Agent;

(v)              
the Personal Guaranty Agreement, duly completed and executed by the parties thereto;

(vi)            
the Corporate Guaranty Agreement, duly completed and executed by the parties thereto;

(vii)          
the Intercreditor Agreement, duly completed and executed by the parties thereto;

(viii)        
the Mortgage, duly completed with the exception of the legal description and executed by the parties thereto;

(ix)            
the Mortgage Escrow Agreement, duly completed and executed by the parties thereto;

(x)              
the Personal Guarantor Subordination Agreement, duly completed and executed by the parties thereto;

(xi)            
the Pledge Agreement, duly completed and executed by the parties thereto;

(xii)          
the Notes, duly completed and executed by the Borrower; and

(xiii)        
such other agreements, documents and assurances as the Agent may reasonably request in connection with the transactions
described in or contemplated by the Loan Documents.

(b)              
The Agent shall have received a certificate, signed by the president, the chief executive officer, the chief operating
officer or the chief financial officer of the Borrower, dated the Closing Date and in form and substance reasonably satisfactory
to the Agent, certifying that (i) all representations and warranties of the Borrower contained in this Agreement and the other
Loan Documents are true and correct in all material respects (except to the extent such representation or warranty is already qualified
by materiality, in which case it shall be true and correct in all respects) as of the Closing Date, both immediately before and
after giving effect to the consummation of the Transactions, the making of the loan hereunder and the application of the proceeds
thereof (except to the extent any such representation or warranty is expressly stated to have been made as of a specific date,
in which case such representation or warranty shall be true and correct in all material respects (except to the extent such representation
or warranty is already qualified by materiality, in which case it shall be true and correct in all respects) as of such date),
(ii) no Default or Event of Default has occurred and is continuing, both immediately before and after giving effect to the
consummation of the Transactions, the making of the loan hereunder and the application of the proceeds thereof, (iii) both
immediately before and after giving effect to the consummation of the Transactions, the making of the loan hereunder and the application
of the proceeds thereof, no Material Adverse Effect has occurred since December 31, 2012, and there exists no event, condition
or state of facts that could reasonably be expected to result in a Material Adverse Effect, and (iv) all conditions set forth
in this Section 3.1 have been satisfied or waived as required hereunder.

(c)               
The Agent shall have received a certificate of the secretary or an assistant secretary of the Borrower, dated the Closing
Date and in form and substance reasonably satisfactory to the Agent, certifying (i) that attached thereto is a true and complete
copy of the articles or certificate of incorporation, certificate of formation or other organizational document and all amendments
thereto of the Borrower, certified as of a recent date by the Secretary of State (or comparable Governmental Authority) of its
jurisdiction of organization, and that the same has not been amended since the date of such certification, (ii) that attached
thereto is a true and complete copy of the bylaws of the Borrower, as then in effect and as in effect at all times from the date
on which the resolutions referred to in clause (iii) below were adopted to and including the date of such certificate and
(iii) that attached thereto is a true and complete copy of resolutions adopted by the Board of the Borrower, authorizing the
execution, delivery and performance of this Agreement and the other Loan Documents to which it is a party, and as to the incumbency
and genuineness of the signature of each officer of the Borrower executing this Agreement or any of such other Loan Documents,
and attaching all such copies of the documents described above.

(d)              
The Agent shall have received (i) a certificate as of a recent date of the good standing of the Borrower, under the
laws of its jurisdiction of organization, from the Secretary of State (or comparable Governmental Authority) of such jurisdiction,
and (ii) a certificate as of a recent date of the qualification of the Borrower to conduct business as a foreign corporation
in such jurisdictions in which it is qualified to do business as a foreign corporation and for which its failure to be duly qualified
or licensed would result in a Material Adverse Effect, from the Secretary of State (or comparable Governmental Authority) of such
jurisdiction.

(e)               
The Agent shall have received certified reports from an independent search service reasonably satisfactory to it listing
any judgment or tax lien filing or Uniform Commercial Code financing statement that names the Borrower as debtor, and the results
thereof shall be reasonably satisfactory to the Agent.

(f)               
The Agent shall have received evidence in form and substance reasonably satisfactory to it that all filings, recordings,
registrations and other actions necessary to perfect the Liens created by the Security Documents shall have been completed, or
arrangements reasonably satisfactory to the Agent for the completion thereof shall have been made.

(g)              
Since December 31, 2012, both immediately before and after giving effect to the consummation of the Transactions, there
shall not have occurred (i) a Material Adverse Effect or (ii) any event, condition or state of facts that would reasonably
be expected to have a Material Adverse Effect.

(h)              
The Agent shall have received evidence in form and substance reasonably satisfactory to it that all of the requirements
of Section 6.8 have been satisfied, including receipt of certificates of insurance naming the Agent as loss payee or additional
insured, as its interests may appear.

(i)                
The Agent shall have received an operating financial forecast for the Borrower (including an operating and capital budget)
for the twenty four months following the Closing Date, including projections of (a) consolidated balance sheets of the Borrower
at the end of each month of such period, (b) consolidated statements of income and expense for each month of such period,
(c) consolidated statements of cash flow of the Borrower for each month of such period and (d) a budget of capital expenditures
to be incurred by the Borrower for such period, all of the foregoing to be in reasonable detail and certified on behalf of Borrower
by a responsible officer of Borrower as having been prepared in good faith and to the best knowledge and ability of Borrower.

(j)                
The Borrower shall have delivered to the Agent a balance sheet of the Borrower as of the end of September, 2013, and a statement
of income and a statement of cash flows of the Borrower for such month and for the current fiscal year to date certified on behalf
of Borrower by a responsible officer of Borrower.

(k)              
The Agent shall have received written instructions from an Authorized Officer of the Borrower, including wire transfer information,
directing the payment of the proceeds of the loan to be made hereunder.

(l)                
The Agent shall have received financial information regarding the Personal Guarantor satisfactory to the Agent in its reasonable
discretion, together with a certification of such information by the Personal Guarantor’s tax accountant in a form satisfactory
to the Agent.

(m)            
The Agent shall have received such other documents, certificates, opinions and instruments in connection with the transactions
contemplated hereby as it shall have reasonably requested.

(n)              
The Borrower shall have made all filings under all applicable federal and state securities laws necessary to consummate
the issuance of the Notes pursuant to this Agreement in compliance with such laws.

(o)              
Each of the representations and warranties contained in Article IV and in the other Loan Documents shall be
true and correct in all material respects (except to the extent such representation or warranty is already qualified by materiality,
in which case it shall be true and correct in all respects) on and as of the Closing Date, both immediately before and after giving
effect to the loan to be made (except to the extent any such representation or warranty is expressly stated to have been made as
of a specific date, in which case such representation or warranty shall be true and correct in all material respects (except to
the extent such representation or warranty is already qualified by materiality, in which case it shall be true and correct in all
respects) as of such date).

(p)              
No Default or Event of Default shall have occurred and be continuing on such date, both immediately before and after giving
effect to the loan to be made hereunder.

(q)              
The Borrower shall have reimbursed the Purchasers for any of their fees, costs and expenses incurred in connection with
this Agreement and the other Loan Documents.

(r)                
No material litigation by any Person shall be pending or threatened with respect to the Borrower.

(s)               
Agent shall have received a waiver, in form and substance reasonably satisfactory to it, from the landlord of Borrower’s
primary facility 15402 Vantage Parkway East, Houston, Texas 77032.

(t)                
The Agent shall have received evidence in form and substance reasonably satisfactory to it that all existing Indebtedness
owed by the Borrower pursuant to the Enhanced Note Purchase Agreement will be paid in full on the Closing Date.

(u)              
The Agent shall have received a payoff letter in form and substance reasonably satisfactory to it with respect to the Enhanced
Note Purchase Agreement.

(v)              
All third-party consents or approvals necessary to consummate the loan contemplated hereunder, including the approval from
all necessary Governmental Authorities of the Purchasers’ Jobs for Texas investment application related to the Transactions
shall have been obtained.

ARTICLE
IV.

REPRESENTATIONS AND WARRANTIES REGARDING THE BORROWER

In order to induce
the Purchasers to enter into this Agreement and to purchase the Notes hereunder, the Borrower represents and warrants to the Purchasers
as set forth in this Article IV (subject to the exceptions and matters disclosed on the disclosure schedules attached
hereto (the “Disclosure Schedules”)).

Section 4.1           
Organization. The Borrower (a) is a corporation duly organized and validly existing and in good standing under the
laws of Delaware, (b) is duly qualified to do business and is in good standing as a foreign organization in each jurisdiction where
the nature of its business requires such qualification, except where the failure to be so qualified would not have a Material Adverse
Effect, and (c) has full power and authority and holds all requisite governmental licenses, permits and other approvals to enter
into and perform its obligations under this Agreement, the Notes and each other Loan Document to which it is a party and to conduct
its business substantially as currently conducted by it.

Section 4.2           
Due Authorization; Non-Contravention. The execution, delivery, and performance by the Borrower of this Agreement,
the Notes and each other Loan Document to which it is party (a) are within the Borrower’s corporate powers, (b) have been
duly authorized by all necessary corporate action, (c) do not contravene the Borrower’s certificate of incorporation, bylaws
or other constituent documents, or any material law or material contractual restriction binding on or affecting the Borrower or
assets or its properties, and (d) do not result in or require the creation of any Lien upon any of the Collateral other than a
Permitted Lien.

Section 4.3           
Third Party Approval. No authorization or approval or other action by, and no notice to or filing with, any Governmental
Authority or other Person (other than the Senior Lender) is required for the due execution, delivery or performance by the Borrower
of this Agreement, the Notes, or any other Loan Document to which it is a party.

Section 4.4           
Validity. This Agreement constitutes, and the Notes and each other Loan Document executed by the Borrower will, on
the due execution and delivery thereof, constitute, the legal, valid, and binding obligations of the Borrower enforceable in accordance
with their respective terms, except to the extent that enforcement thereof may be limited by applicable bankruptcy, insolvency
or similar laws now or hereafter in effect affecting creditors’ rights generally and by general principles of equity.

Section 4.5           
Litigation. Except as set forth on the Perfection Certificate delivered by Borrower at the Closing, there are no
proceedings involving the Borrower pending or, to the knowledge of the Borrower, threatened before any court or Governmental Authority,
agency or arbitration authority that, individually or in the aggregate, would reasonably be expected to result in liability in
excess of $100,000 or which purport to affect the legality, validity or enforceability of this Agreement, the Notes or any other
Loan Document.

Section 4.6           
Ownership of Properties. The Borrower owns good and marketable title to all material properties and assets, real
and personal, tangible and intangible, of any nature whatsoever used by it in the operation of its business, free and clear of
all Liens except for Permitted Liens.

Section 4.7           
Compliance with Laws. The Borrower is in material compliance with all applicable laws, except where the failure to
be in compliance would not have a Material Adverse Effect.

Section 4.8           
ERISA. No ERISA Event has occurred or is reasonably expected to occur; and (ii) there are no pending, or to the knowledge
of Borrower, threatened claims (other than claims for benefits in the normal course),
sanctions, actions or lawsuits, asserted or instituted against any Plan or any Person as fiduciary or sponsor of any Plan.

Section 4.9           
Absence of Changes. Since December 31, 2012 the Borrower has not suffered any event, occurrence or development which
would reasonably be expected to result in a Material Adverse Effect.

Section 4.10       
Existing Indebtedness. The Borrower does not have any Indebtedness other than Indebtedness permitted pursuant to
Section 7.4.

Section 4.11       
Solvency. After giving effect to the transactions contemplated herein (including the receipt of any financing incurred
by the Borrower in connection with such transactions and all repayments or refinancings of Indebtedness), the Borrower is Solvent.

Section 4.12       
Subsidiaries.The Borrower does not own any stock, partnership interest or other equity securities except for
Permitted Investments.

Section 4.13       
Taxes.The Borrower has timely filed all federal, state, local and foreign tax returns and reports required to
be filed by it and has paid, prior to the date on which penalties would attach thereto or a Lien would attach to any of the properties
of the Borrower if unpaid, all taxes, assessments, fees and other charges levied upon it or upon its properties that are shown
thereon as due and payable, other than those (in any of the foregoing cases) (i) that are not yet delinquent or that are being
contested in good faith and by proper proceedings and for which adequate reserves have been established in accordance with GAAP
and (ii) for which the failure or delinquency of payment could not reasonably be expected to have a Material Adverse Effect.
Such returns accurately reflect in all material respects all liability for taxes of the Borrower for the periods covered thereby.
As of the Closing Date, there is no ongoing audit or examination or, to the best knowledge of the Borrower, other investigation
by any Governmental Authority of the tax liability of the Borrower, and there is no material unresolved claim by any Governmental
Authority concerning the tax liability of the Borrower for any period for which tax returns have been or were required to have
been filed, other than unsecured claims for which adequate reserves have been established in accordance with GAAP. As of the Closing
Date, the Borrower has not waived or extended or has been requested to waive or extend the statute of limitations relating to the
payment of any taxes.

Section 4.14       
Intellectual Property. The Borrower owns, or has the legal right to use, all Intellectual Property necessary for
it to conduct its business as currently conducted (the “Required Intellectual Property”). The Perfection Certificate
delivered by Borrower at the Closing lists, as of the Closing Date and after giving effect to the Transactions, all registered
Intellectual Property owned by the Borrower (excluding ordinary course, off the shelf software licenses). No claim has been asserted
or is pending by any Person challenging or questioning the use of any Required Intellectual Property or the validity or effectiveness
of any Required Intellectual Property, nor does the Borrower know of any such claim, and to the knowledge of any Responsible Officer
of the Borrower the use of any Required Intellectual Property by the Borrower does not infringe on the known rights of any Person,
except for such claims and infringements that, individually or in the aggregate, could not reasonably be expected to have a Material
Adverse Effect.

Section 4.15       
Regulated Industries. The Borrower is not (i) an “investment company,” a company “controlled”
by an “investment company,” or an “investment advisor,” within the meaning of the Investment Company Act
of 1940, as amended, or (ii) a “holding company,” a “subsidiary company” of a “holding company,”
or an “affiliate” of a “holding company” or of a “subsidiary company” of a “holding company,”
within the meaning of the Public Utility Holding Company Act of 2005, as amended.

Section 4.16       
Insurance. The assets, properties and business of the Borrower are insured against such hazards and liabilities,
under such coverages and in such amounts, as are customarily maintained by companies similarly situated and under policies issued
by insurers of recognized responsibility.

ARTICLE
V.

REPRESENTATIONS AND WARRANTIES OF THE PURCHASER

In order to induce
the Borrower to enter into this Agreement and to sell the Notes hereunder, each Purchaser, individually and not jointly and severally,
represents and warrants to the Borrower as set forth in this Article V with respect to such Purchaser (and only such Purchaser).

 

Section 5.1           
Authorization. The Purchaser has full power and authority to enter into this Agreement. This Agreement, when executed
and delivered by the Purchaser, will constitute a valid and legally binding obligation of the Purchaser, enforceable in accordance
with its terms, except to the extent that enforcement thereof may be limited by applicable bankruptcy, insolvency or similar laws
now or hereafter in effect affecting creditors’ rights generally and by general principles of equity.

Section 5.2           
Purchase for Own Account. This Agreement is made with the Purchaser in reliance upon the Purchaser’s representation
to the Borrower, which by the Purchaser’s execution of this Agreement, the Purchaser hereby confirms, that the Note to be
acquired by the Purchaser will be acquired for investment for the Purchaser’s own account, not as a nominee or collateral
agent, and not with a view to the resale or distribution of any part thereof except to Affiliates of such Purchaser, and that the
Purchaser has no present intention of selling, granting any participation in, or otherwise distributing the Note except to Affiliates
of such Purchaser. By executing this Agreement, the Purchaser further represents that the Purchaser does not presently have any
contract, undertaking, agreement or arrangement with any Person to sell, transfer or grant participations to such person or to
any third Person other than an Affiliate, with respect to the Note. The Purchaser has not been formed for the specific purpose
of acquiring the Note.

Section 5.3           
Restricted Securities. The Purchaser understands that the Note has not been, and will not be, registered under the
Securities Act, by reason of a specific exemption from the registration provisions of the Securities Act which depends upon, among
other things, the bona fide nature of the investment intent and the accuracy of the Purchaser’s representations as expressed
herein. The Purchaser understands that the Notes are “restricted securities” under applicable U.S. federal and state
securities laws and that, pursuant to these laws, the Purchaser must hold the Restricted Securities indefinitely unless the transfer
thereof is registered with the Securities and Exchange Commission and qualified by state authorities, or an exemption from such
registration and qualification requirements is available. The Purchaser acknowledges that the Borrower has no obligation to register
or qualify the Restricted Securities for resale. The Purchaser further acknowledges that if an exemption from registration or qualification
is available, it may be conditioned on various requirements, including, the time and manner of sale, the holding period for the
Note, and on requirements relating to the Borrower which are outside of the Purchaser’s control, and which the Borrower is
under no obligation and may not be able to satisfy.

Section 5.4           
Legends. The Purchaser also understands that the Restricted Securities may bear one or all of the following legends
(in substantially the form set forth below):

(a)               
“THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES
LAWS, AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER SUCH LAWS OR PURSUANT TO AN EXEMPTION
FROM REGISTRATION AVAILABLE UNDER SUCH LAWS.”

(b)              
Any legend required by the securities laws of any state to the extent such laws are applicable to the Restricted Securities.

Section 5.5           
Accredited Investor. The Purchaser is an accredited investor as defined in Rule 501(a) of Regulation D promulgated
under the Securities Act.

Section 5.6           
No Finder’s Fees. The Purchaser neither is nor will be obligated for any finder’s fee or commission in
connection with this transaction that would cause the Borrower to become liable for the payment of any fee or expense with respect
thereto. The Purchaser agrees to indemnify and to hold harmless the Borrower from any liability for any commission or compensation
in the nature of a finder’s or broker’s fee arising out of this transaction (and the costs and expenses of defending
against such liability or asserted liability) for which the Purchaser or any of its officers, employees, or representatives is
responsible.

ARTICLE
VI.

AFFIRMATIVE COVENANTS

The Borrower agrees
with the Agent and the Purchasers that, until all Obligations have been paid and performed in full, the Borrower will perform the
obligations set forth in this Article VI.

Section 6.1           
Financial Statements. The Borrower shall provide to the Agent all of the following, in form and detail reasonably
satisfactory to the Agent:

(a)               
(i) within fifteen (15) days of when such plan is approved by the Board, and in any event not less than thirty (30) days
after the beginning of each fiscal year, an annual budget and operating plans for such fiscal year forecasting the Borrower’s
revenues, expenses and cash-position on a month-to-month basis (and as soon as available, any subsequent written revisions thereto)
and (ii) as soon as practicable after the end of each month, and in any event within twenty-five (25) days thereafter, a balance
sheet of the Borrower as of the end of such month, and a statement of income and a statement of cash flows of the Borrower for
such month and for the current fiscal year to date, including a comparison to plan figures for such period, prepared in accordance
with GAAP consistently applied (except as noted therein);

(b)              
contemporaneously with each monthly financial statement required hereby, a Financial Covenant Compliance Certificate;

(c)               
within 120 days after the last day of each fiscal year of the Borrower, the Borrower will provide each Purchaser with
audited consolidated annual financial statements of the Borrower including a (i) balance sheet, (ii) statement of income and
expense, (iii) statement of shareholder equity and (iv) statement of cash flow for such year, prepared in accordance with
GAAP and setting forth in each case, in comparative form, the figures for the previous fiscal year, all in reasonable detail accompanied
by a Financial Covenant Compliance Certificate and, in the case of the audited annual report, accompanied by an unqualified opinion
of Hein & Associates LLP or another independent certified public accountant reasonably satisfactory to the Agent.

(d)              
so long as the Senior Indebtedness exists, copies of all financial compliance documentation delivered to the Senior Lender;

(e)               
any public filings made by the Borrower; and

(f)               
from time to time such other information as the Agent may reasonably request.

Section 6.2           
Compliance with Laws. The Borrower shall comply in all material respects with all laws, rules, regulations and orders
applicable to the Borrower or any of its businesses, properties or assets, except where such failure to comply would not have a
Material Adverse Effect.

Section 6.3           
Preservation of Business and Corporate Existence. The Borrower shall: (a) carry on and conduct its business substantially
as it is now being conducted, (b) maintain in good standing its existence and its right to transact business in those states in
which it is now or may after the Closing Date be doing business, and (c) maintain all licenses, permits and registrations necessary
to conduct business, except with respect to clauses (b) and (c) where the failure to maintain its good standing or right to transact
business or to maintain such licenses, permits or registrations would not have a Material Adverse Effect.

Section 6.4           
Maintenance of Properties and Leases. The Borrower shall: (a) maintain, preserve and keep its properties and assets
and every part thereof in good repair, working order and condition in all material respects (except for such properties and assets
as the Borrower in good faith determines are not useful in the conduct of its business), (b) from time to time make all necessary
and customary property repairs, renewals, replacements, additions and improvements thereto so that at all times the efficiency
thereof shall be fully preserved and maintained in all material respects, and (c) maintain all leases of real or personal property
in good standing, free of any material defaults by the Borrower thereunder.

Section 6.5           
Payment of Taxes and Debts. The Borrower will pay or discharge, when due, (a) all taxes, assessments and governmental
charges levied or imposed upon it or upon its income or profits, or upon any properties and assets belonging to it, prior to the
date on which penalties attach thereto, (b) all federal, state and local taxes required to be withheld by it, and (c) all
lawful claims for labor, materials and supplies which, if unpaid, would by law become a Lien or charge upon any properties and
assets of the Borrower; provided, that the Borrower shall not be required to pay any such tax, assessment, charge or claim whose
amount, applicability or validity is being contested in good faith by appropriate proceedings and for which the Borrower has provided
adequate reserves in accordance with GAAP so long as non-payment could not have a Material Adverse Effect nor result in forfeiture
or sale of any assets of the Borrower. The Borrower will comply with, pay and discharge all notes, mortgages, deeds of trust, leases,
indentures and any other contractual arrangements to which the Borrower is subject in accordance with the respective terms of such
instruments so as to prevent any default thereunder.

Section 6.6           
Books and Records; Inspection and Examination. The Borrower shall keep books and records which accurately reflect
all of its business affairs and transactions. The Borrower shall permit any representatives designated by the Purchaser, upon reasonable
notice and during normal business hours and at such other times as the Purchaser may reasonably request, to visit and inspect any
of the properties of the Borrower, and to examine the corporate and financial records of the Borrower and make copies thereof or
extracts therefrom and discuss the affairs, finances and accounts of the Borrower with its executive officers and independent accountants.
The Purchaser and its representatives may discuss the business of the Borrower with the Borrower’s independent accountants
so long as the Purchaser provides prior written notice thereof to the Borrower and provides a representative of the Borrower with
a reasonable opportunity to participate in such discussions. The presentation of an executed copy of this Agreement by the Purchaser
to the Borrower’s independent accountants shall constitute the Borrower’s permission to its independent accountants
to participate in discussions with such Persons.

Section 6.7           
Board Observation Rights.

(a)               
The Borrower shall notify the Purchasers of the date and time for each general or special meeting of its Board (or any committee
or subcommittee thereof) or of the adoption of any resolutions by any such Board by written consent (describing in reasonable detail
the nature and substance of such action) at the time notice is provided to the outside directors of the Borrower, and concurrently
deliver to the Purchasers any materials delivered to the Board (or any committee or subcommittee thereof), including a draft of
any resolutions proposed to be adopted by written consent.

(b)              
Subject to the Purchasers agreeing in writing to comply with the confidentiality obligations set forth in Section 11.13,
Purchasers shall collectively be entitled to select one representative to attend all meetings of the Board or any committee or
subcommittee of the Board, including telephonic meetings, and such representative shall be entitled to reimbursement for reasonable
out-of-pocket expenses incurred in connection with such attendance. The representative designated by the Purchasers shall be entitled
to receive all written materials and other information given to the participants in such meetings.

Section 6.8           
Insurance. Without limiting any of the requirements of any of the other Loan Documents, the Borrower shall maintain,
in amounts customary for entities engaged in comparable business activities, (a) “all risk” casualty insurance on its
properties against such hazards as are customarily insured against by entities engaged in comparable business activities, (b) general
liability insurance, and (c) to the extent required by applicable law, worker’s compensation insurance. The Agent shall be
named as an additional insured with respect to liability insurance and additional loss payee with respect to property insurance.
Each such insurance policy shall require the insurer to notify the Agent in writing at least thirty (30) days prior to any cancellation
or material reduction or limitation of such policy. At the request of the Agent, the Borrower shall deliver to the Agent a certificate
specifying the details of such insurance in effect.

Section 6.9           
Notice of Default or Material Change. The Borrower shall give prompt written notice to the Agent of (a) the occurrence
of any Default or Event of Default under this Agreement or any of the other Loan Documents, (b) any event, occurrence or development
which would reasonably be expected to result in a Material Adverse Effect, and (c) any event, occurrence or development that would
cause the representations or warranties set forth in Article IV to be inaccurate in any material respect as of the
date of such change.

Section 6.10       
Workforce Commission. The Borrower shall give prompt written notice to the Agent of any complaints filed with the
Texas Workforce Commission against the Borrower that exceed $25,000 in the aggregate.

Section 6.11       
Landlord and Bailee Waivers. From time to time at the request of Agent, Borrower shall use reasonable efforts to
obtain landlord or bailee waivers in form and substance reasonably satisfactory to Agent.

Section 6.12       
Canadian Operations. Not later than thirty (30) days after the end of any fiscal quarter in which the aggregate Canadian
Sales for the four (4) preceding fiscal quarters then ended exceed $20,000,000, Borrower shall notify Agent that Canadian Sales
for such period exceeded such amount and provide information and documentation to Agent, in form and substance satisfactory to
Agent, with regard to each of the following matters, in each case demonstrating such matters to Agent’s satisfaction in its
sole discretion: (i) the structure of operations of the Canadian portion of Borrower’s business, including without limitation,
any continuation as an unincorporated branch and all loan, security and related documentation (including opinions confirming the
enforceability of Agent’s Liens), and (ii) Borrower’s compliance with all covenants under the Loan Documents, including
without limitation the payment and remittance of all taxes, including corporate, harmonized or other sales, excise, customs and
withholding taxes, in respect of the Canadian portion of Borrower’s business and/or any collection and remittance to Borrower
or any other person in the United States or to Agent (and if requested by Agent, Borrower covenants and agrees to provide documentary
evidence of the calculation, payment and remittance to Canada Revenue Agency and other applicable taxing authorities in Canada
to the satisfaction of Agent).

ARTICLE
VII.

NEGATIVE COVENANTS

The Borrower further
covenants that so long as any Obligations under any of the Loan Documents remain outstanding, the Borrower shall not, nor permit
any Subsidiary to, without the Agent’s prior written consent:

Section 7.1           
Use of Funds. Use any of the proceeds of the Notes except for the purpose stated in Section 2.7.

Section 7.2           
Capital Expenditures. Beginning on the Closing Date, make any investment in capital assets in any fiscal year in
excess of an aggregate of $625,000.

Section 7.3           
Lease Expenditures. Incur operating lease expense in any fiscal year in excess of an aggregate of $250,000.

Section 7.4           
Other Indebtedness. Create, incur, assume, or permit to exist any Indebtedness or liabilities resulting from borrowings,
loans or advances, whether secured or unsecured, matured or unmatured, liquidated or unliquidated, joint or several, except (a) Permitted
Indebtedness and (b) purchase money Indebtedness and Capitalized Lease Liabilities in respect of capital expenditures permitted
pursuant to Section 7.2 hereof, provided that the total of such amounts under this clause (b) shall not exceed $250,000
in the aggregate at any time.

 

Section 7.5           
Merger, Consolidation, Transfer of Assets, Joint Venture. Merge into or consolidate with any other Person; make any
substantial change in the nature of its business as conducted as of the date hereof; acquire all or substantially all of the assets
of any other Person; or sell, lease, transfer or otherwise dispose of all or a substantial or material portion of its assets or
enter into any material joint ventures with any other Person.

Section 7.6           
Change Capital Structure. Increase or decrease the number of shares of its Capital Stock, or vary or alter the terms
or rights of any class of its Capital Stock, or issue or agree to issue any shares of its Capital Stock, except for Permitted Issuances.

Section 7.7           
Guaranties. Guarantee or become liable in any way as surety, endorser (other than as endorser of negotiable instruments
for deposit or collection in the ordinary course of business), accommodation endorser or otherwise for, or pledge or hypothecate
any of its assets as security for, any liabilities or obligations of any other Person, including any Contingent Liability, except
any of the foregoing in favor of the Purchaser.

Section 7.8           
Loans, Advances, Investments. Make any loans or advances to or investments in any Person, including any subsidiary,
except any of the foregoing existing as of, and disclosed to the Purchaser in writing prior to, the date hereof and except for
Permitted Investments and reasonable business expenses reimbursed in the ordinary course of the Borrower’s business.

Section 7.9           
Dividends, Distributions. Declare or pay any dividend or distribution either in cash, stock or any other property
on its Capital Stock now or hereafter outstanding, or redeem, retire, repurchase or otherwise acquire any shares of any class of
its Capital Stock now or hereafter outstanding; provided, however, the Borrower may redeem, retire or repurchase Capital Stock
of the Borrower or warrants, options or other rights to subscribe for or purchase Capital Stock of the Borrower, from any Person
in connection with the termination of such Person’s employment with the Borrower not to exceed $50,000 in the aggregate in
any fiscal year. Notwithstanding the foregoing, no distributions or dividends will be permitted by the Purchaser for any purpose
if an Event of Default exists or any such distribution or dividend results in an Event of Default.

Section 7.10       
Pledge of Assets. Mortgage, pledge, grant or permit to exist a security interest in, or lien upon (collectively,
“Liens”), all or any portion of its properties or assets now owned or hereafter acquired, except the following
(collectively, “Permitted Liens”):

(a)               
Liens in favor of the Agent;

(b)              
Liens in favor of the Senior Lender;

(c)               
Liens in favor of Enhanced Capital Texas;

(d)              
Liens for Indebtedness permitted pursuant to Section 7.4;

(e)               
Liens for taxes, assessments, governmental charges or claims the payment of which is not due or delinquent;

(f)               
statutory Liens of landlords and Liens of carriers, warehousemen, mechanics, materialmen and other Liens imposed by law
incurred in the ordinary course of business for sums the payment of which is not due or delinquent;

(g)              
Liens (other than any Lien imposed by ERISA, and other than any Lien securing an obligation for the payment of borrowed
money or for the deferred purchase price of property or services) incurred or deposits made in the ordinary course of business
in connection with obligations not due or delinquent with respect to workers’ compensation, unemployment insurance and other
types of social security, or to secure the performance of tenders, statutory obligations, surety and appeal bonds, bids, leases,
government contracts, performance and return of money bonds and other similar obligations;

(h)              
zoning restrictions, easements, licenses, reservations, restrictions on the use of real property or minor irregularities
incident thereto (and, with respect to leasehold interests, Liens and other encumbrances that are incurred, created, assumed or
permitted to exist on or with respect to the leased property and arise by, through or under or are asserted by a landlord or owner
of the leased property, with or without consent of the lessee) that were not incurred in connection with the borrowing of money
and that do not in the aggregate materially detract from the value of the property of the Borrower or impair the use of such property
for the purposes for which such property is held by the Borrower; and

(i)                
the extension, renewal or replacement of any Permitted Lien described in clauses (b) or (c) above, but only if the principal
amount of the Indebtedness secured by such Lien immediately prior to such extension, renewal or replacement is not increased and
the Lien is not extended to other property.

Section 7.11       
ERISA. The Borrower shall not cause or permit to occur an ERISA Event to the extent such ERISA Event could reasonably
be expected to have a Material Adverse Effect.

Section 7.12       
Transactions with Affiliates. Except for payments to non-employee directors of the Borrower of reasonable fees for
service in such capacity consistent with past practice and reimbursement of actual out-of-pocket expenses incurred in connection
with attending meetings of the boards of directors or similar governing bodies of the Borrower and committees thereof, and provision
of reasonable indemnification to such directors, all as determined by the board of directors or similar governing bodies of the
Borrower in good faith, enter into any transaction of any kind with any of its Affiliates, irrespective of whether in the ordinary
course of business, other than on fair and reasonable terms substantially as favorable to the Borrower as would be obtainable by
such Person at the time in a comparable arm’s length transaction with a Person other than an Affiliate.

Section 7.13       
Subordinated Debt. (a) amend or modify any of the terms or conditions relating to Subordinated Debt, in a manner
adverse to the Purchasers or in a manner prohibited under the terms of any instrument or agreement subordinating the same to the
Obligations; (b) make any voluntary prepayment of the Subordinated Debt or effect any voluntary redemption thereof; (c) make
any payment on account of the Subordinated Debt which is prohibited under the terms of any instrument or agreement subordinating
the same to the Obligations, or (d) take or fail to take any action under any agreement with respect to such Subordinated
Debt that would reasonably be expected to have a Material Adverse Effect. Notwithstanding the foregoing, the Borrower may agree
to a decrease in the interest rate applicable thereto or to a deferral of repayment of any of the principal of or interest on the
Subordinated Debt beyond the current due dates therefor.

Section 7.14       
Lines of Business. Engage in any lines of business other than the businesses engaged in by the Borrower as of the
Closing Date and businesses and activities reasonably related thereto.

Section 7.15       
Sale-Leaseback Transactions. Enter into any sale-leaseback transaction involving any real property or other assets.

Section 7.16       
Amendments or Modifications. Enter into any amendments or modifications of the Senior Credit Agreement or any other
material contract or instrument entered into in connection therewith, except as permitted by the Intercreditor Agreement.

Section 7.17       
Relocation. Relocate the Principal Business Operations State outside of Texas.

Section 7.18       
Minimum EBITDA. The Borrower shall not permit its EBITDA for the three (3) months ending on the last day of each
month set forth below to be less than the corresponding amount set forth below for such period:

	Three Month Period Ended	 	Minimum EBITDA
	December 31, 2013	 	$	209,681	 
	January 31, 2014	 	$	132,256	 
	February 28, 2014	 	$	176,963	 
	March 31, 2014	 	$	250,212	 
	April 30, 2014	 	$	465,226	 
	May 31, 2014	 	$	583,420	 
	June 30, 2014	 	$	750,681	 
	July 31, 2014	 	$	830,315	 
	August 31, 2014	 	$	941,489	 
	September 30, 2014	 	$	1,015,570	 
	October 31, 2014	 	$	1,030,250	 
	November 30, 2014	 	$	866,285	 
	December 31, 2014	 	$	464,898	 
	January 31, 2015	 	$	244,032	 
	February 28, 2015	 	$	241,732	 
	March 31, 2015	 	$	380,909	 
	April 30, 2015	 	$	585,206	 
	May 31, 2015	 	$	702,332	 
	June 30, 2015	 	$	860,241	 
	July 31, 2015	 	$	936,405	 
	August 31, 2015	 	$	1,037,729	 
	September 30, 2015	 	$	1,106,449	 

 

Section 7.19       
Fixed Charge Coverage Ratio. The Borrower shall not permit its Fixed Charge Coverage Ratio for the twelve (12) months
ending on the last day of each month set forth below to be less than the corresponding amount set forth below for such period:

	Twelve Month Period Ended	 	FCCR
	December 31, 2013	 	 	0.90	 
	January 31, 2014	 	 	0.90	 
	February 28, 2014	 	 	0.90	 
	March 31, 2014	 	 	0.80	 
	April 30, 2014	 	 	0.80	 
	May 31, 2014	 	 	0.90	 
	June 30, 2014	 	 	0.90	 
	July 31, 2014	 	 	1.0	 
	August 31, 2014 and the last day of each month thereafter	 	 	1.25	 

Section 7.20       
Minimum Liquidity. The Borrower shall not permit its Liquidity to be less than $500,000.

ARTICLE
VIII.

EVENTS OF DEFAULT

Section 8.1           
Generally. The occurrence of any of the following shall constitute an “Event of Default” under
this Agreement:

(a)               
The Borrower shall fail to pay any (i) principal when due, (ii) interest when due, or (iii) fees or other amounts payable
under any of the Loan Documents when due; and, in the case of clauses (ii) and (iii) only, such failure continues unremedied for
a period of three (3) calendar days.

(b)              
Any financial statement or certificate furnished to the Agent or Purchasers in connection with, or any representation or
warranty made by an Obligor, in this Agreement or any other Loan Document shall prove to be incorrect, false or misleading in any
material respect when furnished or made.

(c)               
Any default in the performance of or compliance with the provisions of Section 6.1, 6.6, 6.8, 6.13,
and Article VII.

(d)              
Any default in the performance of or compliance with any obligation, agreement or other provision contained herein or in
any other Loan Document (other than those referred to in subsections (a), (b) or (c) above) shall occur, and with respect to any
such default which by its nature can be cured, such default shall continue for a period of ten (10) days from the earlier of such
time as an Obligor has knowledge thereof or an Obligor receives notice thereof from Agent, and with respect to any such default
which by its nature cannot be cured or is a willful breach by an Obligor, immediately.

(e)               
Any default in the payment or performance of any obligation, or any defined event of default, under the terms of any contract
or instrument (other than any of the Loan Documents) pursuant to which an Obligor has incurred any Indebtedness or other liability
to any Person, including the Purchasers, which gives such person or entity the right to accelerate the payment of Indebtedness
or liability in excess of $250,000.

(f)               
The filing of one or more notices of judgment Lien against an Obligor securing obligations, in the aggregate, in excess
of $250,000, that remains unpaid for a period of ten (10) days from the filing of such notice; or the recording of any abstract
of judgment against an Obligor in any county in which the applicable Obligor has an interest in real property securing obligations,
in the aggregate, in excess of $250,000, that remains unpaid for a period of ten (10) days from the recording of such abstract;
or the service of a notice of levy and/or of a writ of attachment or execution, or other like process, against the assets of an
Obligor securing obligations, in the aggregate, in excess of $250,000, that remains outstanding for a period of ten (10) days from
the service of such notice; or the entry of judgments against an Obligor in the aggregate in excess of $250,000, that remains unpaid
for a period of ten (10) days from the entry of such judgment.

(g)              
An Obligor shall become insolvent, or shall suffer or consent to or apply for the appointment of a receiver, trustee, custodian
or liquidator of itself or any of its property, or shall generally fail to pay its debts as they become due, or shall make a general
assignment for the benefit of creditors; an Obligor shall file a voluntary petition in bankruptcy, or seeking reorganization, in
order to effect a plan or other arrangement with creditors or any other relief under the Bankruptcy Reform Act, Title 11 of the
United States Code, as amended or recodified from time to time (“Bankruptcy Code”), or under any state or federal
law granting relief to debtors, whether now or hereafter in effect; or any involuntary petition or proceeding pursuant to the Bankruptcy
Code or any other applicable state or federal law relating to bankruptcy, reorganization or other relief for debtors is filed or
commenced against an Obligor, or an Obligor shall file an answer admitting the jurisdiction of the court and the material allegations
of any involuntary petition; or an Obligor shall be adjudicated a bankrupt, or an order for relief shall be entered against an
Obligor by any court of competent jurisdiction under the Bankruptcy Code or any other applicable state or federal law relating
to bankruptcy, reorganization or other relief for debtors.

(h)              
The dissolution or liquidation of the Borrower; or the Borrower or any of its directors or stockholders shall take action
seeking to effect the dissolution or liquidation of the Borrower.

(i)                
If any obligation of a Guarantor under a Guaranty is limited or terminated by operation of law or by such Guarantor (other
than in accordance with the terms of such Guaranty), or if a Guarantor fails to perform any obligation under a Guaranty (including
the satisfaction of any covenants contained therein), or repudiates or revokes or purports to repudiate or revoke any obligation
under a Guaranty, or if a Guarantor Default (as defined in a Guaranty) occurs.

(j)                
A Change of Control occurs.

Section 8.2           
Action if Bankruptcy. If any Event of Default described in Section 8.1(f) shall occur, the outstanding principal
amount of the Notes and all other Obligations shall automatically be and become immediately due and payable, without notice or
demand.

Section 8.3           
Action if Other Event of Default. If any Event of Default (other than any Event of Default described in Section
8.1(f)) shall occur for any reason, whether voluntary or involuntary, and be continuing, the Agent may by notice to the Borrower
declare all or any portion of the outstanding principal amount of the Notes and any other Obligations to be due and payable, whereupon
the full unpaid amount of the Notes and other Obligations which shall be so declared due and payable shall be and become immediately
due and payable, without further notice, demand or presentment.

ARTICLE
IX.

Agent.

Section 9.1           
Appointment and Authority. Each of the Purchasers hereby irrevocably appoints Enhanced Credit to act on its behalf
as the Agent hereunder and under the other Loan Documents and authorizes the Agent to take such actions on its behalf and to exercise
such powers as are delegated to the Agent by the terms hereof or thereof, together with such actions and powers as are reasonably
incidental thereto. Except as expressly set forth in Section 9.6, the provisions of this Article are solely for the benefit
of the Agent and the Purchasers, and the Borrower shall have no rights as a third party beneficiary of any of such provisions.

Section 9.2           
Rights as a Purchaser. The Person serving as the Agent hereunder shall have the same rights and powers in its capacity
as a Purchaser as any other Purchaser and may exercise the same as though it were not the Agent and the term “Purchaser”
or “Purchasers” shall, unless otherwise expressly indicated or unless the context otherwise requires, include the Person
serving as the Agent hereunder in its individual capacity. Such Person and its Affiliates may accept deposits from, lend money
to, act as the financial advisor or in any other advisory capacity for and generally engage in any kind of business with the Borrower
or any subsidiary or other Affiliate thereof as if such Person were not the Agent hereunder and without any duty to account therefor
to the Purchasers.

Section 9.3           
Exculpatory Provisions. The Agent shall not have any duties or obligations except those expressly set forth herein
and in the other Loan Documents. Without limiting the generality of the foregoing, the Agent:

(a)               
shall not be subject to any fiduciary or other implied duties, regardless of whether a default or Event of Default has occurred
and is continuing;

(b)              
shall not have any duty to take any discretionary action or exercise any discretionary powers, except discretionary rights
and powers expressly contemplated hereby or by the other Loan Documents that the Agent is required to exercise as directed in writing
by the Requisite Purchasers (or such other number or percentage of the Purchasers as shall be expressly provided for herein or
in the other Loan Documents), provided that the Agent shall not be required to take any action that, in its opinion or the
opinion of its counsel, may expose the Agent to liability or that is contrary to any Loan Document or applicable law; and

(c)               
shall not, except as expressly set forth herein and in the other Loan Documents, have any duty to disclose, and shall not
be liable for the failure to disclose, any information relating to the Borrower or any of its Affiliates that is communicated to
or obtained by the Person serving as the Agent or any of its Affiliates in any capacity.

The Agent shall not
be liable for any action taken or not taken by it (i) with the consent or at the request of the Requisite Purchasers or (ii) in
the absence of its own gross negligence or willful misconduct. The Agent shall be deemed not to have knowledge of any default or
Event of Default unless and until notice describing such default or Event of Default is given to the Agent by the Borrower or a
Purchaser.

The Agent shall not
be responsible for or have any duty to ascertain or inquire into (i) any statement, warranty or representation made in or
in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document
delivered hereunder or thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the
covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any default or Event of Default,
(iv) the validity, enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement,
instrument or document or (v) the satisfaction of any condition set forth in Section 3 or elsewhere herein, other
than to confirm receipt of items expressly required to be delivered to the Agent.

Section 9.4           
Reliance by Agent. The Agent shall be entitled to rely upon, and shall not incur any liability for relying upon,
any notice, request, certificate, consent, statement, instrument, document or other writing (including any electronic message,
internet or intranet website posting or other distribution) believed by it to be genuine and to have been signed, sent or otherwise
authenticated by the proper Person. The Agent also may rely upon any statement made to it orally or by telephone and believed by
it to have been made by the proper Person, and shall not incur any liability for relying thereon. In determining compliance with
any condition hereunder to the making of a loan that by its terms must be fulfilled to the satisfaction of a Purchaser, the Agent
may presume that such condition is satisfactory to such Purchaser unless the Agent shall have received notice to the contrary from
such Purchaser prior to the making of such loan. The Agent may consult with legal counsel (who may be counsel for the Borrower),
independent accountants and other experts selected by it, and shall not be liable for any action taken or not taken by it in accordance
with the advice of any such counsel, accountants or experts.

Section 9.5           
Delegation of Duties. The Agent may perform any and all of its duties and exercise its rights and powers hereunder
or under any other Loan Document by or through any one or more sub-agents appointed by the Agent. The Agent and any such sub-agent
may perform any and all of its duties and exercise its rights and powers by or through their respective Affiliates. The exculpatory
provisions of this Article shall apply to any such sub-agent and to the Affiliates of the Agent and any such sub-agent, and shall
apply to their respective activities in connection with the syndication of the credit facilities provided for herein as well as
activities as Agent.

Section 9.6           
Resignation of Agent. The Agent may at any time give notice of its resignation to the Purchasers and the Borrower.
Upon receipt of any such notice of resignation, the Requisite Purchasers shall have the right, in consultation with the Borrower,
to appoint a successor, which shall be either a Purchaser or a bank with an office in the United States, or an Affiliate of any
such bank with an office in the United States. If no such successor shall have been so appointed by the Requisite Purchasers and
shall have accepted such appointment within 30 days after the retiring Agent gives notice of its resignation, then the retiring
Agent may, on behalf of the Purchasers, appoint a successor Agent meeting the qualifications set forth above; provided that
if the Agent shall notify the Borrower and the Purchasers that no qualifying Person has accepted such appointment, then such resignation
shall nonetheless become effective in accordance with such notice and (1) the retiring Agent shall be discharged from its
duties and obligations hereunder and under the other Loan Documents (except that in the case of any collateral security held by
the Agent on behalf of the Purchasers under any of the Loan Documents, the retiring Agent shall continue to hold such collateral
security until such time as a successor Agent is appointed) and (2) all payments, communications and determinations provided
to be made by, to or through the Agent shall instead be made by or to each Purchaser directly, until such time as the Requisite
Purchasers appoint a successor Agent as provided for above in this Section. Upon the acceptance of a successor’s appointment
as Agent hereunder, such successor shall succeed to and become vested with all of the rights, powers, privileges and duties of
the retiring (or retired) Agent, and the retiring Agent shall be discharged from all of its duties and obligations hereunder or
under the other Loan Documents (if not already discharged therefrom as provided above in this Section). The fees payable by the
Borrower to a successor Agent shall be the same as those payable to its predecessor unless otherwise agreed in writing between
the Borrower and such successor. After the retiring Agent’s resignation hereunder and under the other Loan Documents, the
provisions of this Article, Section 11.11, and Section 11.12 shall continue in effect for the benefit of such retiring
Agent, its sub-agents and their respective Affiliates in respect of any actions taken or omitted to be taken by any of them while
the retiring Agent was acting as Agent.

Section 9.7           
Non-Reliance on Agent and Other Purchasers. Each Purchaser acknowledges that it has, independently and without reliance
upon the Agent or any other Purchaser or any of their Affiliates and based on such documents and information as it has deemed appropriate,
made its own credit analysis and decision to enter into this Agreement. Each Purchaser also acknowledges that it will, independently
and without reliance upon the Agent or any other Purchaser or any of their Affiliates and based on such documents and information
as it shall from time to time deem appropriate, continue to make its own decisions in taking or not taking action under or based
upon this Agreement, any other Loan Document or any related agreement or any document furnished hereunder or thereunder.

Section 9.8           
Collateral and Guaranty Matters.

(a)               
The Agent is hereby authorized on behalf of the Purchasers, without the necessity of any notice to or further consent from
the Purchasers, from time to time (but without any obligation) to take any action with respect to the Collateral and the Security
Documents that may be deemed by the Agent in its discretion to be necessary or advisable to perfect and maintain perfected the
Liens upon the Collateral granted pursuant to the Security Documents.

(b)              
The Purchasers hereby authorize the Agent, at its option and in its discretion, (i) to release any Lien granted to
or held by the Agent upon any Collateral (A) upon payment in full of all of the Obligations then due and payable, (B) constituting
property sold or to be sold or disposed of as part of or in connection with any disposition expressly permitted hereunder or under
any other Loan Document or to which the Requisite Purchasers have consented in writing or (C) otherwise pursuant to and in
accordance with the provisions of any applicable Loan Document, and (ii) to subordinate any Lien on any property granted to
or held by the Agent under any Loan Document to the holder of any Lien on such property that is permitted by Section 7.10.
Upon request by the Agent at any time, the Purchasers will confirm in writing the Agent’s authority to release or subordinate
its interest in particular types or items of property, or to release any Guarantor from its obligations under a Guaranty, pursuant
to this Section 9.8(b).

ARTICLE
X.

Transfer of A Note.

Section 10.1       
Successor and Assigns in General. This Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors and assigns, except that the Borrower may not assign or transfer the Borrower’s rights hereunder
or any interest herein or delegate its duties hereunder without the prior written consent of the Agent. Any Purchaser or any Assignee
may assign all or any portion of its interest in and rights under this Agreement or such Purchaser’s Note to another Person
(an “Assignee”), or grant a participating or beneficial interest in this Agreement and the Note to another Person
(a “Participant”), provided that such assignment or participation does not constitute a violation of federal
securities laws or any applicable state securities laws or regulations. The transferring Purchaser shall give the Borrower prompt
written notice of any assignment of or participation in the Notes hereunder but any delay or failure to provide such notice shall
not void the assignment or participation. Any purported assignment of rights or delegation of duties in violation of this section
is void.

Section 10.2       
Further Assurance. The Borrower shall, from time to time at the request of any Purchaser, execute and deliver to
such Purchaser or to such party or parties as such Purchaser may designate, any and all further instruments as may in the reasonable
opinion of such Purchaser be necessary or advisable to give full force and effect to any transfer contemplated by this Section 10.

Section 10.3       
Participants. With respect to a Purchaser granting a participating interest, unless an Event of Default has occurred
and is continuing at the time of such grant, (i) the Purchaser’s obligations under this Agreement shall remain unchanged,
(ii) such Purchaser shall remain solely responsible to the other parties hereto for the performance of such obligations, and
(iii) the Borrower and the Agent shall continue to deal solely and directly with such Purchaser in connection with such Purchaser’s
rights and obligations under this Agreement.

ARTICLE
XI.

MISCELLANEOUS PROVISIONS

Section 11.1       
Waivers, Amendments. The provisions of this Agreement and of each other Loan Document may from time to time be amended,
modified or waived, if such amendment, modification or waiver is in writing and consented to by the Borrower and the Purchasers.
No failure or delay on the part of the Purchasers or any holder of the Notes in exercising any power or right under this Agreement
or any other Loan Document shall operate as a waiver thereof, nor shall any single or partial exercise of any such power or right
preclude any other or further exercise thereof or the exercise of any other power or right. No notice to or demand on the Borrower
in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval by the Purchasers
or any holder of the Notes under this Agreement or any other Loan Document shall, except as may be otherwise stated in such waiver
or approval, be applicable to subsequent transactions. No waiver or approval hereunder shall require any similar or dissimilar
waiver or approval thereafter to be granted hereunder.

Section 11.2       
Further Assurances. The Purchasers and the Borrower agree and covenant that at any time and from time to time they
will promptly execute and deliver such further instruments and documents and take such further action as may be reasonably required
in order to carry out the full intent and purpose of this Agreement and to comply with federal or state securities laws or other
regulatory approvals.

Section 11.3       
Notices. Except as otherwise provided herein, any notices desired, required or permitted to be given hereunder shall
be delivered by email to each email address listed below (as applicable) and (i) personally, (ii) mailed, certified or registered
mail, return receipt requested, postage prepaid, (iii) by commercial overnight courier service, charges prepaid, or (iv) by confirmed
facsimile (provided that a paper version is also sent by any of (i), (ii), or (iii) above) to the following addresses and numbers,
or such other addresses and numbers as shall be given by notice delivered hereunder:

If to the Agent:

Enhanced Credit Supported
Loan Fund, LP

601 Lexington Avenue,
55th Floor

New York, NY 10022

Attn: Douglas A. Cruikshank

Email: DCruikshank@enhancedcapital.com

 

with copies of notices to any of the foregoing (which
shall not constitute notice) to:

 

Enhanced Jobs For Texas
Fund, LLC

601 Lexington Avenue,
55th Floor

New York, NY 10022

Attn: Denise Kutsch

Email: dkutsch@enhancedcapital.com

and

 

Shane McCarthy

Email: smccarthy@enhancedcapital.com

 

and

 

Perkins Coie LLP

131 South Dearborn
Street

Suite 1700

Chicago, IL 60603

Attn: Teri A. Lindquist

Email: tlindquist@perkinscoie.com

Facsimile: (312) 324-9547

 

If to the Borrower:

 

Lapolla Industries,
Inc.

15402 Vantage Parkway
East

Suite 322

Houston, TX 77032

Attn: Michael T. Adams

Email: madams@lapolla.com

Facsimile: (281) 219-4710

 

with copies of notices
to any of the foregoing (which shall not constitute notice) to:

McGuireWoods LLP

1345 Avenue of the
Americas, 7th Floor

New York, NY 10105

Attn: Stephen E. Older
and Leon Yel

Email: solder@mcguirewoods.com

Facsimile: (212) 715-2307

 

or to such other address or telecopy
number as each party may designate for itself by like notice give in accordance with this Section 11.3.

 

 

Section 11.4       
Survival. The representations and warranties made by the Borrower and each Purchaser in this Agreement and in each
other Loan Document shall continue until this Agreement has terminated pursuant to its terms and all Obligations (other than inchoate
indemnity obligations and any other obligations which by their terms are to survive the termination of this Agreement) have been
paid in full and satisfied.

Section 11.5       
Severability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effect
and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law,
such provision shall be ineffective only to the extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

Section 11.6       
Headings. The various headings of this Agreement and of each other Loan Document are inserted for convenience only
and shall not affect the meaning or interpretation of this Agreement or such other Loan Document or any provisions hereof or thereof.

Section 11.7       
Execution in Counterparts. This Agreement and the other Loan Documents may be executed in any number of counterparts,
each of which when so executed and delivered shall be deemed to be an original and all of which counterparts taken together shall
constitute but one and the same instrument. A signature of a party to this Agreement or any of the Loan Documents sent by facsimile
or other electronic means shall be deemed to constitute an original and fully effective signature of such party.

Section 11.8       
Governing Law; Entire Agreement. THIS AGREEMENT, THE NOTES, AND EACH OTHER LOAN DOCUMENT, AND DISPUTES OR CONTROVERSIES
ARISING HEREUNDER OR THEREUNDER, AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT, THE NOTES, AND EACH OTHER
LOAN DOCUMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICTS OF LAW PRINCIPLES. This Agreement, the Notes and the other Loan Documents constitute the entire understanding
among the parties hereto with respect to the subject matter hereof and supersede any prior agreements, written or oral, with respect
thereto. In the event of a conflict between the terms of this Agreement and the terms of any other Loan Document, the terms of
this Agreement shall control.

Section 11.9       
Forum Selection and Consent to Jurisdiction. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH, THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN)
OR ACTIONS OF THE PURCHASERS OR THE BORROWER MAY BE BROUGHT AND MAINTAINED IN ANY STATE OR FEDERAL COURT SITTING IN NEW YORK COUNTY,
NEW YORK, AND THE PURCHASERS AND THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF ANY
STATE OR FEDERAL COURT SITTING IN NEW YORK COUNTY, NEW YORK FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE AND IRREVOCABLY
AGREE TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH SUCH LITIGATION. THE PURCHASERS AND THE BORROWER FURTHER
IRREVOCABLY CONSENT TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE
STATE OF NEW YORK AT THE ADDRESS FOR NOTICES SPECIFIED IN SECTION 11.3. THE PURCHASERS AND THE BORROWER HEREBY EXPRESSLY
AND IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY HAVE OR HEREAFTER MAY HAVE TO THE LAYING
OF VENUE OF ANY SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT
IN AN INCONVENIENT FORUM.

Section 11.10   
Waiver of Jury Trial. THE PURCHASERS AND THE BORROWER HEREBY KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHTS
THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS
AGREEMENT OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR ACTIONS
OF THE PURCHASERS OR THE BORROWER.

Section 11.11   
Expenses. The Borrower agrees to pay, and advance to and hold the Purchasers and the Agent and any holder of the
Notes harmless against liability for the payment of, (a) the reasonable fees and expenses of their counsel arising in connection
with the negotiation, due diligence review, execution and consummation of the transactions contemplated by the Loan Documents,
(b) reasonable fees and expenses incurred with respect to any amendments or waivers (whether or not the same become effective)
under or in respect of the Loan Documents, (c) stamp and other taxes which may be payable in respect of the execution and delivery
of the Loan Documents or the issuance, delivery or acquisition of the Notes, (d) all reasonable out of pocket costs and expenses
incurred by the Purchasers and the Agent (including reasonable attorneys’ fees and expenses) in connection with the collection
of the Obligations or the enforcement of any provisions of the Loan Documents, and (e) all other reasonable out of pocket fees
and expenses the Purchasers and the Agent incurred in connection herewith.

Section 11.12   
Indemnity. THE BORROWER SHALL INDEMNIFY AND HOLD HARMLESS THE PURCHASERS AGAINST ANY CLAIMS THAT MAY BE INCURRED
BY OR ASSERTED AGAINST ANY SUCH PERSON IN CONNECTION HEREWITH, INCLUDING CLAIMS ARISING FROM THE NEGLIGENCE OF ANY SUCH PERSON.
In no event shall the Borrower have any obligation hereunder to indemnify or hold harmless the Purchasers with respect to a claim
that is determined in a final, non-appealable judgment by a court of competent jurisdiction to result from the gross negligence
or willful misconduct of the proposed indemnitee.

Section 11.13   
Confidentiality. Each Purchaser shall exercise the same degree of care that it exercises with respect to its own
proprietary information in order to maintain the confidentiality of any material non-public information received pursuant to this
Agreement (including any such information or materials obtained through the exercise of the board observation rights provided in
Section 6.7), except that the foregoing shall not be construed to prevent the Purchasers from:

(a)               
making any disclosure of any information (A) if required to do so by any applicable law, (B) to any Governmental Authority
having or claiming authority to regulate or oversee any aspect of such Person’s business or that of the corporate parent
or affiliates of such Person in connection with the exercise of such authority or claimed authority, (C) pursuant to subpoena or
other legal process, or (D) expressly permitted by the Loan Documents;

(b)              
making disclosures of any information to the extent such Person or its counsel reasonably deems necessary or appropriate
to do so to enforce its rights hereunder or under any other Loan Document or any remedy provided herein or therein or otherwise
available by law;

(c)               
making, on a confidential basis, such disclosures as such Person reasonably deems necessary or appropriate to such Person’s
legal counsel or accountants, partners or investors (including outside auditors and legal counsel of such Person’s accountants,
partners or investors) or to such Person’s employees, officers, directors or Affiliates, so long as such parties are notified
of the confidential nature of such information;

(d)              
making disclosures to prospective transferees or purchasers of any interest in the Notes, provided that they have
agreed to be bound by the provisions of this Section 11.13; or

(e)               
making disclosures otherwise consented to by the Borrower.

In addition to the
foregoing, the Purchaser shall be permitted to (i) disclose information about such financing transactions in the ordinary
course of its business and in a manner consistent with the public disclosures by such Person in respect of similar financings,
(ii) make any disclosures required by or deemed advisable under applicable laws, including federal and state securities laws
and applicable securities exchanges and markets; and (iii) make public disclosures to its investors and analysts customary
in the ordinary course of its business and in a manner consistent with the public disclosures by such Person in respect of similar
financings. The parties hereto expressly agree that nothing in this Section 11.13 shall restrict the Purchasers from
disclosing the amount of the Notes in the ordinary course of its business in (x) filings with or communications to investors required
by the United States Securities and Exchange Commission or applicable foreign counterpart, (y) earnings press releases and (z)
finance industry publications for the purpose of obtaining league table credit or similar rankings.

Confidential information
shall include only such information received from the Borrower the proprietary nature of which is apparent, or identified as confidential
or proprietary at the time provided to a Purchaser by or on behalf of the Borrower, but shall not include information that either:
(i) is in the public domain, or becomes part of the public domain after disclosure to a Purchaser through no fault of such Purchaser,
or (ii) is disclosed to a Purchaser by a third party, provided such Purchaser does not have actual knowledge that such third
party is prohibited from disclosing such information.

 

 

Section 11.14   
Publicity. Notwithstanding any other provision contained herein, the Purchasers shall have the right from time to
time to issue press releases or other public statements, in form and substance as shall be determined by the Purchasers in such
Purchaser’s sole discretion, with respect to the transactions contemplated by this Agreement; provided that such releases
shall be subject to Borrower’s consent, such consent not to be unreasonably withheld, conditioned or delayed.  Each
Purchaser shall also have the right to list the Borrower as a portfolio company of such Purchaser on the web site or sites owned
and maintained by such Purchaser and in any other marketing materials as such Purchaser, in its sole discretion, shall determine.

Section 11.15   
Disclosure Schedules. The Disclosure Schedules are hereby incorporated into this Agreement to the same extent as
though fully set forth herein (provided that in no event shall any information or disclosures in the Disclosure Schedules
be deemed or interpreted to broaden or otherwise amplify the representations and warranties contained in this Agreement). 
Information contained in the Disclosure Schedules under any particular schedule or section is deemed disclosed with respect to
all other schedules or sections and any representations, warranties or covenants of the Borrower where the applicability of such
information to such other schedules or sections or representations, warranties or covenants is reasonably apparent.  Any matter
disclosed in the Disclosure Schedules shall not be deemed an admission or representation as to the materiality of the item so disclosed
or that such item did not arise in the ordinary course of business, and matters disclosed in the Disclosure Schedules are not necessarily
limited to matters required by this Agreement to be disclosed in the Disclosure Schedules.  Nothing in the Disclosure Schedules
constitutes an admission of any liability or obligation of the Borrower to any third party or shall confer or give to any third
party any remedy, claim, liability, reimbursement, cause of action or other right.

[Remainder
of this page is intentionally left blank.]

     

     

    

IN WITNESS WHEREOF,
the parties hereto have executed this Agreement on the date first written above.

	
         

        BORROWER:

         

        LAPOLLA INDUSTRIES, INC.

	 
	By:/s/ Michael T. Adams, EVP
	Name: Michael T. Adams
	Title: Executive Vice President
	 
	AGENT AND PURCHASER:
	
         

        ENHANCED CREDIT SUPPORTED LOAN FUND,
        LP

        By: ENHANCED CSLF GP, LLC, its general
        partner

                   
        By: /s/ Douglas A. Cruikshank

	           
    Name: Douglas A. Cruikshank
	           
    Title:    Manager
	
         

        PURCHASER:

        ENHANCED JOBS FOR TEXAS FUND, LLC

	
                   
        By: /s/ Michael Korengold

	           
    Name: Michael Korengold
	           
    Title:    Authorized Signatory

 

 

 

     

     

    

EXHIBIT A

Form
of Initial Promissory Note

 

 

     

     

    

EXHIBIT B

Form
of Financial Covenant Compliance Certificate

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