Document:

EXHIBIT 10.3

 

EMPLOYMENT AGREEMENT

THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (THE “AGREEMENT”) is effective the 6th day of September, 2017, by and between ePlus inc., a Delaware corporation (the “Company”) or collectively, with its subsidiaries, the “Companies”) and Elaine D. Marion (the “Executive”).

RECITAL

The Executive is employed as the Chief Financial Officer, and the parties have negotiated this Agreement in consideration of the Executive’s valuable services and expertise.

NOW THEREFORE, in consideration of the mutual promises and covenants herein contained, the parties do hereby agree as follows:

1.  EFFECTIVE DATE.  This agreement shall be effective as of the date noted above.

2.  DEFINITIONS.  As used herein, the following terms shall have the following meanings:

(a)  “Disability” shall mean the Executive’s physical or mental inability to perform her duties under this Agreement, for, six months in any twelve month period, with at least three months running continuously, and which renders the Executive incapable of performing her customary and usual duties for the Company, with or without a reasonable accommodation as required by law.

(b)  “Employment Term” shall be the period from August 1, 2017, through and including July 31, 2018, and any renewal period thereafter.  Unless either the Company or the Executive delivers a written notice of termination to the other party, not less than 60 days prior to the end of the Employment Term, then this Agreement shall automatically renew for successive one-year periods.

(c)  “Expiration Date” means the date that the Employment Term (as it may have been extended) expires.

(d)  “Good Cause” means that the Compensation Committee of the Company’s Board of Directors (the “Board”) in good faith determines that the Executive:

(1)  Failed to satisfactorily perform her duties to the Company and such failure was not cured within 30 days of the Company’s providing Executive written notice of such failure;

(2)  Failed to comply with a material policy of the Company that was applicable to the Executive and such failure was not cured within 30 days of the Company’s providing Executive written notice of such failure;

 

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(3)  Acted or failed to act in a manner that constitutes gross misconduct, embezzlement, misappropriation of corporate assets, breach of the duty of loyalty, fraud, or negligent or willful violations of any laws with which the Company is required to comply;

(4)  Was convicted of or entered a plea of “guilty” or “no contest” to a felony;

(5)  Refused or failed to comply with lawful and reasonable instructions of the Board and such refusal or failure was not cured within 30 days of the Company’s providing Executive written notice of such refusal or failure; or

(6)  Any other material breach of this Agreement by the Executive that is not cured within 30 days of the Company’s providing Executive written notice of such breach.

Good Cause shall not include failures as set forth this Section 2(d) when such failure is a result of the Executive’s illness or injury.

(e)  “Good Reason” shall mean that within 30 days prior to the Executive’s providing the notice to the Company required under Section 6(b)(1) of this Agreement that any of the following has occurred:

(1)  A material change in the scope of the Executive’s authority or assigned duties and responsibilities, or the assignment of duties or responsibilities that are inconsistent with the Executive’s level or position without her consent;

(2)  Any material acts of dishonesty by the Company directed toward or affecting Executive;

(3)  Any illegal act or instruction directly affecting Executive by the Company, which is not withdrawn after the Company is notified of the alleged illegality by Executive;

(4)  A reduction by the Company in the Executive’s base salary as set forth herein as may be increased from time to time or a reduction by the Company in the Executive’s incentive compensation;

(5)  A change in the Executive’s principal office to a location outside of a 20 mile radius from the Company’s offices in Herndon, Virginia;

(6) The failure by the Company to continue to provide the Executive with benefits substantially similar to those specified in Section 5 of this Agreement;

(7)  The Company delivers a timely notice (see Section 2(b)) to the Executive that the Agreement will terminate at the end of the Employment Term, and within thirty days after receipt of said notice the Executive tenders her resignation from the Company (to be effective at the end of the Employment Term); or

(8)  Any other material breach of this Agreement by the Company that is not cured within 30 days of the Executive providing the Company written notice of such breach.

 

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(f)  “Termination Date” shall mean the date Executive’s termination is effective, as described in the respective subparts of Section 6.

3.  EMPLOYMENT.  The Company and Executive hereby agree to employ the Executive as set forth herein during the Employment Term and until Executive’s employment terminates pursuant to Section (2)(b) or Section 6 below.

4.  POSITION, DUTIES AND RESPONSIBILITIES.  During the Employment Term, the Executive shall:

(a)  Serve as the Company’s Chief Financial Officer.  The Executive shall be responsible for, but not limited to, the following areas: finance, tax, insurance, budget, treasury, information technology services and accounting.

(b)  Render such other services to the Company as requested provided that such services are consistent with the level of her position; and

(c)  Devote her substantially full business time, attention, skill and energy to the business of the Company and not engage or prepare to engage in any other business activity, whether or not such business activity is pursued for gain, profit or other economic or financial advantage.   Executive may engage in appropriate civic, charitable, or educational activities provided that such activities do not materially interfere or conflict with the Executive’s responsibilities or the Company’s interests.  Nothing in this Agreement shall preclude Executive from acquiring or managing any passive investment she has in publicly traded equity securities in companies that are not in the same line of business as the Company.

5.  COMPENSATION, COMPENSATION PLANS AND BENEFITS.  During the Employment Term, the Executive shall be compensated as follows:

(a)  Effective June 8, 2017, Executive shall receive a base annual salary of four hundred fifty thousand ($450,000 Dollars), which may be increased from time to time.

(b)  Based on applicable MBOs and company performance the Executive shall be eligible to be considered for an annual bonus as set forth in the terms and conditions as outlined in the Executive Incentive Plan (“EIP”) and any applicable award agreement thereunder.  The Company shall pay any bonus earned under this Section 5(b) no earlier than the end of the fiscal year for which earned and no later than the next September 30th following the fiscal year in which the bonus was earned, provided that financial filings are timely provided to the Compensation Committee. In no event will any bonus earned under this Section 5(b) be paid later than the next December 31st following the fiscal year for which the bonus was earned, unless calculation of the bonus is not administratively practicable by that date, and further delay would not violate Code Section 409A.

(c)  The Executive shall be entitled to participate in and receive other benefits offered by the Company to all employees, which may include, but are not limited to, vacation, sick, holiday and other leave times, and benefits under any life, health, accident, disability, medical, and dental insurance plans.

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(d)  The Executive shall be entitled to be reimbursed for the reasonable and necessary out-of-pocket expenses, including entertainment, travel and similar items, and all expenses necessary to maintain her professional, industry association memberships incurred by her in performing her duties, in accordance with the Company’s expense reimbursement policies in place from time to time.  Any reimbursements that are includible in gross income of the Executive under this section 5(d) must meet the following conditions.  Such reimbursements: (i) must be for expenses incurred during the term of this agreement, (ii) shall not be subject to liquidation or exchange for any other benefit, (iii) shall not affect eligibility for reimbursements in any other taxable year of the Executive, and (iv) shall be made no later than the last day of the Executive’s taxable year following the taxable year in which the expense was incurred.

(e)  In the event Executive’s employment with the Company terminates for any reason, any payments and benefits due the Executive under the Company’s employee benefit plans and programs, including any Long-Term Incentive Plan, shall be determined in accordance with the terms of such benefit plans and programs, and shall be in addition to any other payments or benefits herein.

(f)  In the event it is determined that any bonus or other incentive compensation payable by the Company to the Executive was paid based on incorrect financial results, the Compensation Committee will review such payment.  If the amount of the payment would have been lower had the level of achievement of applicable financial performance goals been calculated based on the correct financial results, the Company’s Compensation Committee may, in its sole discretion, adjust (i.e., lower) the amount of such payment so that it reflects the amount that would have applied based on the correct financial results and, to the extent permitted by applicable law, require the reimbursement by Executive of any amount paid to or received by the Executive with respect to such bonus or other incentive compensation.  Additionally, bonuses or other incentive compensation payable to the Executive by the Company are subject to recovery by the Company to the extent required by the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 and the Sarbanes-Oxley Act of 2002, including any amendments thereto, and any regulations promulgated thereunder.  Except as required by law, this subsection shall not apply to time-vested stock options, restricted stock or restricted stock units which are not awarded, granted or vested based on financial measure required to be reported under the securities laws.

6.  TERMINATION OF EMPLOYMENT

(a)  Termination by the Company.

(1)  Termination for Good Cause.  During the Employment Term, the Company may terminate the Executive’s employment for Good Cause. In the absence of cure by the Executive as per Section 2(d), if applicable, termination by the Company for Good Cause shall be retroactive to the date the Company provides notice to the Executive of the Good Cause Event.

(2)  Termination without Good Cause.  During the Employment Term, the Company may terminate the Executive’s employment at any time without Good Cause upon the Company’s payment to the Executive for the 30 days’ written notice period to the Executive or 30 days’ pay in lieu of such notice.  Termination is effective 30 days after the date the written notice of termination is provided to the Executive. The Company may, in its sole discretion, place the Executive on paid administrative leave as of any date prior to the end of the 30-day notice period and require that the Executive no longer be present on Company premises.  During any period of paid administrative leave, the Executive is not authorized to act or speak as a representative of the Company.

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(b)  Termination by Executive.

(1)  Termination for Good Reason.  During the Employment Term, the Executive may terminate her employment for Good Reason as defined in Section 2(e) only if the Executive has provided the Board with written notice of her intent to terminate her employment for Good Reason at least 30 days prior to the date of termination and the Company fails to cure the Good Reason within 30 days after receiving Executive’s written notice.  Termination for Good Reason will be effective on the 31st day after the Company receives Executive’s written notice and fails to cure the Good Reason identified in Executive’s notice.

(2)  Termination without Good Reason.  During the Employment Term, the Executive may voluntarily terminate her employment for any (or no) reason with the Company upon 30 days prior written notice.  Termination is effective 30 days after the date the notice is provided to the Company.  The Company may, in its sole discretion, place the Executive on paid administrative leave as of any date prior to the end of the 30-day notice period and require that the Executive no longer be present on Company premises.  During any such period of paid administrative leave, the Executive is not authorized to act or speak as a representative of the Company.

(c)  Termination by Reason of Death or Disability.  Executive’s employment with the Company shall be deemed to have been terminated effective upon the date of Executive’s death, or the date upon which either party provides the other party with notice of Disability.

(d)  At-will Termination.   If the Employment Term ends based on the Company’s delivering a notice of termination under Section 2(e)(7), then the Executive’s employment with the Company may continue on an at-will basis.

7.  EFFECT OF TERMINATION.

(a)  Termination for any reason.  If the Executive’s employment ends at any time (during or after the Employment Term) for any reason, the Company shall pay the Executive her then current base salary and provide the Executive her then current benefits (as provided in Section 5) through the Termination Date.

(b)  Provided that after the Termination Date the Executive (i) signs in the form provided by the Company a general release of all claims Executive has or may have against the Company or its then current or former officers, directors, or employees (hereinafter “Release”),attached hereto as Exhibit 1, in the time provided in the Release, and does not revoke it; and (ii) certifies that the Executive has complied with Sections 8, 9, 10,  11 and 12 of this Agreement (confidentiality, intellectual property, non-compete, non-solicit, conflict of interest and return of property provisions), then:

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(1)  Death or Disability.  If, during the Employment Term, the Executive’s employment terminates by reason of death or Disability as described in Section 6(c), then:

(a)  Unvested Stock.  Executive shall be entitled to the acceleration of vesting of any restricted stock, as set forth in the relevant Long-Term Incentive Plan and award agreement;

(b)  Severance.  In the event of Disability only, the Company shall pay to Executive a cash severance in the amount equal to twelve months of her then-base annual salary; and

 

(c)  EIP Award.  The Company shall pay to the Executive, or to her estate, a pro-rated target amount due under any EIP award agreement, as described in Section 5(b), multiplied by a fraction, the numerator of which is the number of months (including partial months) in the period beginning on the first day of the relevant performance period and ending with the date as of which the Executive’s employment with the Company terminated and the denominator of which is the number of months in such performance period.

Notwithstanding anything to the contrary, the release of claims requirement shall be waived if the Executive’s death or Disability renders her unable to sign the Release.

(2)  Termination without Good Cause; Termination for Good Reason.  If, during the Employment Term, the Company terminates the Executive’s employment without Good Cause as described in Section 6(a)(2) or Executive terminates her employment for Good Reason, as described in Section 6(b)(1), then:

(a) The Company shall pay Executive a severance amount equal to twelve months of her then-base annual salary;

(b) The Company shall either, at the Company’s choice: (1) accelerate the vesting of any restricted stock owned by the Executive at the Termination Date or (2) pay to Executive an amount equal to the value of any restricted stock she forfeits at the Termination Date; and

(c) The Company shall pay to the Executive a pro-rated target amount due under any EIP award agreement, as described in Section 5(b), multiplied by a fraction, the numerator of which is the number of months (including partial months) in the period beginning on the first day of the relevant performance period and ending with the date as of which the Executive’s employment with the Company terminated and the denominator of which is the number of months in such performance period;

(d)  Any payment due to the Executive under subsection 7(b) shall be made in a lump sum within sixty (60) days following the Termination Date.

 

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(c)  Notwithstanding the foregoing, if the Executive is a “Specified Employee” (as defined in Section 20), the payments under subsection 7(b) shall be made no earlier than the date provided in Section 20.

(d)  Any release and certification required from the Executive under the first paragraph of Section 7(b) shall be on the form attached as Exhibit 1 .  The applicable release and certification must be signed and returned by Executive to the Company within the time frame set forth in the Release, and not revoked, for Executive to receive payments under Section 7(b).  Except as otherwise provided by subsection 7(b)(2)(d), and provided the requirements of this subsection 7(d) are met, any lump sum payment due Executive under subsection 7(b) shall be paid on the last day of the sixty (60) day period in which the Company may make such payment in compliance with the applicable provision.

(e)  Continued Health Benefits Upon Termination.  In the event Executive’s employment is terminated due to Disability, by the Company Without Good Cause, or by the Executive for Good Reason, the Company shall pay an amount in cash equal to the cost of premiums the Company paid prior to the date of termination for Executive and/or Executive’s qualified dependents’ coverage under the Company’s medical, prescription, dental, and other health benefits each month until the last day of the Employment Term or eighteen months following the termination date, whichever is greater.  Executive agrees that this cash payment is not a reimbursement for her actual premiums for health coverage and that she has complete discretion with respect to the use of these funds.  The Executive shall not be obligated in any way to mitigate the Company’s obligations to her under this Section.

8.  CONFIDENTIALITY.

(a)  During the course of employment, Executive has had and shall continue to have access to the Company’s Confidential Information (as defined below).  Executive shall not disclose or use at any time, either during her employment or after her employment ends for any reason, any Confidential Information (as defined below) of the Company, whether or not patentable, that Executive learns as a result of her involvement with the Company, whether or not she developed such information.  “Involvement with the Company” means holding a position as an employee, officer, or director with either the Company or any of its subsidiaries or affiliates.  “Confidential Information” means Company information that is material to the Companies’ business and that is not generally known by, or made available to, the public and shall include, without limitation, information regarding:

 

		
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“Trade Secrets” (as defined below) or proprietary information;

		
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strategic sourcing information or analysis;

		
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patents, patent applications, developmental or experimental work, formulas, test data, prototypes, models, and product specifications;

		
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accounting and financial information;

		
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financial projections and pro forma financial information;

		
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sales and marketing strategies, plans and programs

		
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product development and product testing information;

		
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product sales and inventory information;

		
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personnel information, such as employees’ and consultants’ benefits, perquisites, salaries, stock options, compensation, formulas or bonuses;

		
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organizational structure and reporting relationships;

		
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business plans;

		
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names, addresses, phone numbers of customers;

		
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contracts, including contracts with clients, suppliers, independent contractors or employees; business plans and forecasts;

		
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existing and prospective projects or business opportunities; and

		
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passwords and other physical and information security protocols and information.

 

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“Trade Secrets” includes any information that derives independent economic value, actually and potentially, from not being generally known to, and is not readily being ascertainable by proper means by, other persons who may obtain economic value from their disclosure or use and that are the subject of efforts that are reasonable under the circumstances to maintain their secrecy.

(b)  Confidential Information excludes any information known to the Executive prior to her employment with the Companies regardless of whether such information would otherwise be deemed Confidential Information.  Information that is or later becomes publicly available in a manner wholly unrelated to any breach of this Agreement by Executive or other improper means will not be considered Confidential Information as of the date it enters the public domain.  If Executive is uncertain whether something is Confidential Information, Executive should treat it as Confidential Information until she receives clarification from the person to whom she reports that it is not Confidential Information.  Confidential Information shall remain at all times the property of the Companies.

(c)  Executive may use or disclose Confidential Information only:

(1)  When she is employed by the Company, as authorized and necessary in performing the responsibilities of her position, provided that she has taken reasonable steps to ensure that the information remains confidential; or

(2)  With prior written consent of the Company’s Chief Executive Officer (“CEO”);

(3)  In a legal proceeding between Executive and the Company to establish the rights of either party under this Agreement, provided that Executive stipulates to a protective order to prevent any unnecessary use or disclosure; or

(4)  Where such disclosure is required by law, provided that Executive has complied with the following procedures to ensure that the Companies have an adequate opportunity to protect their legal interests.

Upon receipt of a subpoena or any other compulsory legal process (“Compulsory Process”) that could possibly require disclosure of Confidential Information, Executive shall make her best effort to provide within forty-eight (48) hours of receipt a copy of the Compulsory Process as well as complete information regarding the circumstances under which she received Compulsory Process to the General Counsel by hand delivery or by e-mail provided that Executive confirms with the General Counsel by telephone that the General Counsel received the e-mail.  To provide the Company with the greatest opportunity to assess the need for protection from disclosure, Executive shall not make any disclosure until the latest possible date for making such disclosure in accordance with the Compulsory Process (“Latest Possible Date”).  If one of the Companies seeks to prevent disclosure in accordance with the applicable legal procedures, and notifies Executive before the Latest Possible Date that it has initiated such procedures, Executive shall not make disclosures of any Confidential Information that is the subject of such procedures, until such objections are withdrawn, or the appropriate tribunal either makes a final determination that the objections are invalid or orders Executive to make the disclosure, unless otherwise required by law.

 

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(d)  Executive hereby acknowledges that any breach of this Section 8 would cause the Companies irreparable harm.  Nothing in this Agreement prohibits Executive from reporting an event that she reasonably and in good faith believes is a violation of law to the relevant law-enforcement agency (such as the Securities and Exchange Commission, Department of Justice, Equal Employment Opportunity Commission, Department of Labor, National Labor Relations Board, the Congress, or any agency Inspector General),  from cooperating in an investigation conducted by such a government agency, or from making other disclosures that are protected under the whistleblower provisions or state or federal law or regulation.  This may include disclosure of trade secret or confidential information within the limitations permitted by the 2016 Defend Trade Secrets Act (“DTSA”).  Executive is hereby provided notice that under the  DTSA, (1) no individual will be held criminally or civilly liable under Federal or State trade secret law for the disclosure of a trade secret (as defined in the Economic Espionage Act) that: (A) is made in confidence to a Federal, State, or local government official, either directly or indirectly, or to her attorney, that is made solely for the purpose of reporting or investigating a suspected violation of law; or, (B) is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal so that it is not made public; and, (2) an individual who pursues a lawsuit for retaliation by an employer for reporting a suspected violation of the law may disclose the trade secret to her attorney and use the trade secret information in the court proceeding, if the individual files any document containing the trade secret under seal, and does not disclose the trade secret, except as permitted by court order.

9.  INTELLECTUAL PROPERTY.  Executive  acknowledges that all inventions, innovations, improvements, developments, methods, designs, analyses, drawings, reports, original works of authorship, copyrights and all similar or related information (whether or not patentable) that relate to the Companies’ actual or anticipated business, research and development or existing or future products or services and which are conceived, developed or made by Executive while employed by the Companies (“Intellectual Property”) belong to the Companies.  Executive agrees that both during and after her employment with the Companies that she will sign any documents or provide any information necessary for the Companies to protect their rights to such Intellectual Property.  If Executive is unavailable to sign any document that is necessary for the Companies to protect their rights to such Intellectual Property, Executive hereby authorizes the Companies to sign on her behalf.

10.  NON-COMPETITION and NON-SOLICITATION.  During Executive’s employment and for a period of one year following the date on which her employment ends for any reason, (the “Restricted Period”), the Executive agrees to the following below Non-Competition and Non-Solicitation restrictions.

 

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(a)  Non-Competition.  Executive shall not, directly or indirectly, individually or as part of or on behalf of any other person, company, employer or other entity, except with prior written approval of the Company’s CEO, own, manage, operate,  advise, consult with, control or otherwise be employed by or provide services to or on behalf of a Competing Business.  “Competing Business” means a business that is selling products or services similar to those products or services that any of the “Covered Entities” is selling as of the date the Executive’s employment ends “Covered Entities” include the Company and any affiliated entities in which Executive is actively engaged as an officer, director or employee or about which Executive has received Confidential Information as a result of her Involvement with the Company.

(b)  Non-Solicitation of Employees.  Executive  shall not,  either directly or indirectly or on behalf of herself or on behalf of any other person or entity, without prior written consent from the Company, solicit or otherwise encourage in any manner: (i) an employee of the Company to leave the employ of the Company; or (ii) a former employee of the Company who was employed by the Company within the past twelve (12) months at the time of the solicitation or encouragement to work for a Competing Business.  For the purpose of this provision, “employee” shall mean an employee with whom the Executive worked or about whom the Executive had material knowledge with respect to their skills.

(c)  Non-solicitation of Customers, Potential Customers and Vendors.  Executive shall not, either directly or indirectly or on behalf of herself or on behalf of any other person or entity, without prior written consent from the Company, solicit or otherwise encourage in any manner:

(1) any customer of the Company, whom the Executive, while employed by the Company, rendered services to, contacted or attempted to contact, recruited or attempted to recruit, solicited or attempted to solicit, while employed by the Company to (a) end its relationship with the Company or to (b) enter into or continue a relationship with another person or entity to provide the same or similar service(s) that the Company provides;

(2) any vendor or partner of the Company, or any other third-party, to disclose or discuss any information about any customer of the Company whom the Executive, while employed by the Company, rendered services to, contacted or attempted to contact, recruited or attempted to recruit, solicited or attempted to solicit, while employed by the Company; or

(3) any potential customer of the Company, whom the Executive, while employed by the Company, contacted or attempted to contact, recruited or attempted to recruit, solicited or attempted to solicit,  to enter into or continue a relationship with another person or entity to provide the same or similar service(s) that the Company provides.

(d)  Nature of Restrictions.  Executive acknowledges that as a result of her employment as Chief Financial Officer of the Company, she has held and will continue to hold a position of utmost trust in which Executive has come to know and will continue to come to know the Company’s employees, Customers and Confidential Information.  Executive agrees that the provisions of this entire Section 10 are necessary to protect the Company’s legitimate business interests.  Executive warrants that these provisions shall not unreasonably interfere with her ability to earn a living or to pursue her occupation after her employment ends for any reason.  Executive agrees that upon beginning any new employment or business during the Restricted Period, she will promptly inform the Company of the name and address of her new employer or business and provide such new employer or business with a copy of this Agreement and copy the Company on the letter or e-mail transmitting the Agreement to the appropriate person in such new employer or business.

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11.  CONFLICT OF INTEREST.  During her employment, Executive agrees to have undivided loyalty to the Company.  This means that Executive shall avoid any situation that involves or has the potential to appear to involve a conflict of interest, including, but not limited to, participating in a business transaction that personally benefits Executive or a relative based on information or relationships developed on the job, failing to disclose that someone who is doing or seeking to do business with or work for the Company is a relative or close personal associate, or receiving direct or indirect compensation from a client or vendor.

12.  RETURN OF PROPERTY.  On the date Executive’s  employment ends for any reason, or at any time during her employment, at the request or direction of the Company, Executive will immediately deliver to the Company any or all equipment, property, material, Confidential Information, Intellectual Property or copies thereof that are owned by the Company and are in Executive’s possession or control.  This includes documents or other information prepared by Executive, or provided to her in connection with her duties while employed by the Company, regardless of the form in which such document or information are maintained or stored, including computer, typed, handwritten, electronic, audio, video, micro-fiche, imaged, drawn or any other means of recording or storing documents or other information.  Executive hereby warrants that she will not retain in any form such documents, Confidential Information, Intellectual Property or other information or copies thereof after Exectuve’s employment ends for any reason, provided that the  Executive may retain a copy of this Agreement and any other document or information describing any rights she may have after the Termination Date.

13.  COOPERATION WITH LEGAL PROCEEDINGS.  Executive agrees to reasonably cooperate with the Company in the defense or prosecution of any claims or actions now in existence or that may be brought in the future against or on behalf of any of the Companies that relate to events or occurrences that transpired while Executive was employed by any of the Companies.  Executive’s reasonable cooperation in connection with such claims or actions shall include, but not be limited to, being available to meet with the Companies’ counsel to prepare for discovery or trial and to act as a witness on behalf of any of the Companies.  Executive also agrees to reasonably cooperate with any of the Companies in connection with any investigation or review of any federal, state, or local regulatory authority as any such investigation or review relates to events or occurrences that transpired while Executive was employed by any of the Companies.  Executive understands that in any legal action, investigation, or review covered by this Section 13 the Company expects Executive to provide only accurate and truthful information or testimony. The Company agrees to reimburse the Executive for any costs she incurs in cooperation pursuant to this Section 13, including but not limited to travel expenses and attorneys’ fees and costs. Nothing in this Section shall limit any indemnification rights Executive may have on the effective date of this Agreement.

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14.  REMEDY.

(a)  Executive acknowledges that her breach of the obligations contained in Sections 8, 9, 10, 11 and 12 of this Agreement would cause the Company irreparable harm that could not be reasonably or adequately compensated by damages in an action at law.  If Executive breaches or threatens to breach any of the provisions contained in Sections 8, 9, 10, 11 and 12 of this Agreement, the Company shall be entitled to an injunction, without bond, restraining her from committing such breach.  The Company’s right to exercise its option to obtain an injunction shall not limit its right to any other remedies, including damages.

(b)  Any action relating to or arising from this Agreement shall be brought exclusively in a court of competent jurisdiction in the Commonwealth of Virginia, and Executive hereby consents to venue and personal jurisdiction in any such court in the Commonwealth of Virginia.

(c)  Executive expressly waives any right to a trial by jury for any action relating to or arising from this Agreement.

15.  SUCCESSORS; BINDING AGREEMENT.

(a)  This Agreement shall be binding upon, and inure to the benefit of the parties hereto and their heirs, successors and assigns.

(b)  The Company shall require any successor to all or substantially all of the business or assets of the Company expressly to assume and agree to perform this Agreement in the same manner and to the same extent that the Company would be required to perform if no such succession had taken place.

16.   NOTICES.  For the purpose of this Agreement, notices and all other communications provided herein shall be in writing and shall be deemed to have been duly given when delivered in person or mailed by United States registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

 

	
IF TO THE EXECUTIVE:

	
IF TO THE COMPANY:

	 	 
	
Elaine D. Marion

	
Attn:  General Counsel

	
c/o ePlus inc.

	
ePlus inc.

	
13595 Dulles Technology Drive

	
13595 Dulles Technology Drive

	
Herndon, VA 20171

	
Herndon, VA  20171

 

17.  GOVERNING LAW.  All issues and questions concerning the construction, validity, enforcement and interpretation of this Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware, without giving effect to any choice of law or conflict of law rules or provisions (whether of the State of Delaware or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Delaware.

18.  SEVERABILITY.  The provisions of this Agreement are severable, and if any part of it is found to be unlawful or unenforceable, the other provisions of this Agreement shall remain fully valid and enforceable to the maximum extent consistent with applicable law.

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19.  MISCELLANEOUS.  No provisions of this Agreement may be modified, waived or discharged unless such waiver, modification or discharge is agreed to in writing signed by the Executive and the Company’s CEO.  No waiver by either party hereto at any time of any breach by the other party hereto of, or noncompliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed a waiver of other provisions or conditions at the same or at any prior or subsequent time.  No agreements or representations, oral or otherwise, express or implied, with respect to the subject matter hereof have been made by either party that are not set forth expressly in this Agreement.

20.  CODE SECTION 409A.  It is the intent of this Agreement to either meet an exception from or to comply with the requirements of Section 409A (“Section 409A”) of the Internal Revenue Code of 1986, as amended, and any rulings and regulations promulgated thereunder (collectively, the “Code”), and any ambiguities herein will be so interpreted and this Agreement will be so administered.  References to a termination of employment in Section 6 and/or 7 of this Agreement shall mean the date of a “separation from service” within the meaning of Section 409A(a)(2)(A)(i).  If the Executive is a “specified employee” within the meaning of Section 409A(a)(2)(B)(i) at the time of the Executive’s termination of employment, any nonqualified deferred compensation subject to Section 409A that would otherwise have been payable under this Agreement as a result of, and within the first six (6) months following, the Executive’s “separation from service” and not by reason of another event under Section 409A(a)(2)(A), will become payable six (6) months and one (1) day following the date of the Executive’s separation from service or, if earlier, the date of Executive’s death.  Any such “nonqualified deferred compensation” shall not be subject to anticipation, alienation, sale, transfer, assignment, pledge, encumbrance, attachment, garnishment by creditors, or borrowing, to the extent necessary to avoid tax, penalties and/or interest under Section 409A.  The Company agrees that it will pay, indemnify and hold the Executive harmless for any additional tax or interest penalty payable amount by the Executive on account of a violation of Section 409A.  Any payment by the Company of such amount shall include a “gross-up” payment, which shall be the amount required to cause the net amount retained by the Executive after payment of all taxes, including taxes on the “gross-up” payment, to equal the amount of additional tax and interest penalty payable by the Executive on account of the violation of Section 409A.  Such payment shall be made by the Company within thirty (30) days of the date that Executive submits proof of payment of such taxes to the taxing authority and not later than the end of Executive’s taxable year next following the taxable year in which the Executive submits the respective taxes to the taxing authority. The Executive agrees that the Company may amend this Agreement, with the consent of the Executive, as the Company determines is necessary or advisable so that payments made pursuant to this agreement will not result in additional taxation of the Executive pursuant to the provisions of Section 409A.  The Executive agrees that she will not withhold her consent under this Section 20 if the proposed amendment does not materially adversely affect the Executive’s rights under this Agreement.

21.  CODE SECTION 280G.  In the event the Company (or its successor) and Executive agree, based on the advice of an independent nationally recognized public accounting firm engaged by the Company, that part or all of the consideration, compensation or benefits to be paid to or for the benefit of Executive under this Agreement constitute “parachute payments” under Section 280G(b)(2) of the Code (“Section 280G”), then either (a) or (b) below shall apply.

13

(a)  Except as provided in Section 21(b), if the aggregate present value of such parachute payments, singularly or together with the aggregate present value of any consideration, compensation or benefits to be paid to or for the benefit of Executive under any other plan, arrangement or agreement which constitute “parachute payments”, calculated as provided under Section 280G, (collectively, the “Parachute Amount”) exceeds 2.99 times Executive’s “base amount”, as defined in Section 280G(b)(3) (the “Base Amount”), the amounts constituting “parachute payments” that would otherwise be payable to Executive or for Executive’s benefit shall be reduced to the extent necessary so that the Parachute Amount is equal to 2.99 times the Base Amount (the “Reduced Amount”).

(b)  The Parachute Amount shall not be reduced as provided in Section 21(a) if, based on the advice of such public accounting firm, without such reduction Executive would be entitled to receive and retain, on a net after-tax basis (including, without limitation, after imposition of any excise taxes payable under Section 4999 of the Code), an amount which is greater than the amount, on a net after-tax basis, that Executive would be entitled to retain upon receipt of the Reduced Amount.

If the determination made above results in a reduction under Section 21(a) of the payments that would otherwise be paid to or for the benefit of Executive, such reduction in payments shall be first applied to reduce any cash severance payments that Executive would otherwise be entitled to receive hereunder and shall thereafter be applied to reduce other payments and benefits in a manner that would not result in subjecting Executive to additional taxation under Section 409A.

22.  STATUS OF PRIOR EMPLOYMENT AGREEMENTS.  Executive acknowledges that this Agreement supplants and replaces in full all prior employment agreements between Executive and the Company.  Executive waives any and all rights to enforce any and all provisions in any prior employment agreement between Executive and the Company.

 

	
ePlus inc.

	 	
Executive

	 	 	 
	
/s/ Erica S. Stoecker

	 	
/s/ Elaine D. Marion

	
Erica S. Stoecker

	 	
Elaine D. Marion

	
General Counsel

	 	
Chief Financial Officer

	 	 	 
	
Date:

	
December 12, 2017

	 	
Date:

	
November 20, 2017

14

EXHIBIT 1

GENERAL RELEASE

This General Release of Claims (“Release”) is entered into by ePlus inc. (hereafter referred to as “ePlus” or the “Company”) and _______________________ (hereafter referred to as “Employee”).

WHEREAS, Employee’s employment with ePlus terminated effective (insert date).

NOW THEREFORE, in consideration of the premises and mutual promises contained in the Employment Agreement between Employee and ePlus, the parties agree as follows:

Employee agrees to and does hereby release ePlus, its past and present officers, directors, agents, shareholders, trustees, partners, employees, in their individual and/or corporate capacities, as well as its employee benefit plans, affiliates, subsidiaries, predecessors, successors and successors in interest (the “Releasees”)  from all claims, charges, causes of action or other liabilities (hereafter collectively referred to as “claims”), whether in contract or tort, known or unknown, arising out of or relating in any way to Employee’s employment and/or termination of employment with ePlus, including, but not limited to, claims under any federal, state or local law, including but not limited to Title VII of the Civil Rights Act of 1964 (“Title VII”) 42 U.S.C. § 1981; the American With Disabilities Act (“ADA”); the Age Discrimination in Employment Act (“ADEA”); the Employee Retirement Income Security Act of 1974 (“ERISA”); the Equal Pay Act; the Genetic Information Nondiscrimination Act; the Family and Medical Leave Act (“FMLA”), all as amended; and any common law, statutory, contract, tort, or public policy claims now or hereafter recognized, including but not limited to claims for wrongful discharge; breach of contract, express or implied; constructive discharge; discrimination; harassment; retaliation; defamation; and whistleblower claims (to the fullest extent they may be released under applicable law), as well as all claims for severance pay or benefits or attorneys’ fees and costs.  Any initiation of claims prohibited by this Release shall be a breach of this Release and shall entitle ePlus to recover the consideration as set in Section 7(b) of the Employment Agreement, along with reasonable attorneys’ fees incurred by ePlus to litigate any such action, to the extent permitted by law.  Employee acknowledges that as of the date she signs this Release, the Company has paid all wages, salaries, commissions, bonuses, benefits, and other amounts earned and accrued, less any applicable deductions, and has no obligation to pay any additional amounts except as set forth in Employee’s Employment Agreement, if applicable.  THIS IS A GENERAL RELEASE OF CLAIMS.

Under the Older Workers Benefits Protections Act (“OWBPA”), Employee may, if desired, have a period of twenty-one calendar days to consider this Release.  Employee has also been advised in writing to consult with an attorney (without expense to ePlus) concerning the release of claims under the ADEA prior to executing this Release.  In addition, Employee may revoke this Release within a period of seven calendar days following execution of this Release (the “Revocation Period”).  If Employee signs and does not revoke this Release during the Revocation Period, this Release will become fully effective upon the expiration of the Revocation Period.

15

Excluded from this Release are any claims which cannot be waived by law.  The Employee is waiving, however, her right to any monetary recovery should any governmental agency or entity, including but not limited to the U.S. Equal Employment Opportunity Commission (“EEOC”) or the U.S. Department of Labor (“DOL”), pursue any claims on her behalf, whether initiated by Employee or any person, organization, or entity filing on her behalf.  Further, no provision of this Release should be construed or interpreted to preclude or in any way limit or restrict the Employee’s right to initiate an action against the Company under the OWBPA or ADEA challenging, under the ADEA, the waiver and release of claims contained in this Release on the grounds that they were not knowing and voluntary.  To the extent that any provision of this Release is determined to be in violation of the OWBPA or ADEA, it should be severed or modified to comply with the OWBPA or ADEA, without affecting the validity or enforceability of any of the other terms or provisions of this Release.  To the extent that Employee is a Medicare beneficiary, Employee agrees to contact a Company human resources representative for further instruction.

The provisions of this Release shall inure to the benefit of the parties, their successors and assigns and shall be binding upon the parties and their heirs, executors, administrators, successors and assigns.

This Release shall be interpreted, applied and enforced in accordance with and shall be governed by the laws of the state of Delaware, without regard to its conflict of laws provisions.

Employee hereby certifies she has complied with Sections 8, 9, 10, 11 and 12 of her Employment Agreement (confidentiality, intellectual property, non-compete, non-solicit, conflict of interest and return of property provisions).

IN WITNESS WHEREOF, the parties have executed this Release on the date set forth next to each party’s signature.

 

	
EMPLOYEE

	 	
ePlus

	 
	 	 	 	 
	
Signature

	 	
Signature

	 
	 	 	 	 
	
Date

	 	
Name/Title

	 
	 	 	 	 
	 	 	
Date

	 

 

 

16Exhibit 10.1

 

Execution Copy

 

CREDIT AGREEMENT 

 

This Credit Agreement
is entered into as of February 2, 2018, by and between Comerica Bank (“Bank”) and BHT Financial LLC,
a Delaware limited liability company (“Borrower”).

 

In consideration of
all present and future loans and credit from time to time made available by Bank to or in favor of Borrower, and in consideration
of all present and future Indebtedness (as herein defined) of Borrower to Bank, Borrower represents, warrants, covenants and agrees
as follows:

 

1.             DEFINITIONS.

 

1.1           Defined
Terms. As used in this Agreement, the following terms shall have the respective meanings set forth below:

 

“Affiliate”
or “Affiliates” means, when used with respect to any Person, any other Person which, directly or indirectly
through one or more intermediaries, controls or is controlled by or is under common control with such Person. For purposes of this
definition, “control” (including, with correlative meanings, the terms “controlled by” and “under
common control with”), with respect to any Person, means possession, directly or indirectly, of the power to direct or cause
the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or
otherwise.

 

“Affiliate
Receivables” means, as of any time of determination, any amounts (whether in respect of loans or advances, accounts receivable,
notes receivable or otherwise) owing to Borrower or another Loan Party from any of its/their Subsidiaries or Affiliates (other
than Affiliates which are Guarantors of all Indebtedness) at such time.

 

“Agreement”
means this Credit Agreement, as the same may be amended from time to time.

 

“Authorized
Officer” means the chief executive officer, the president or the chief financial officer, or in his/her absence, another
responsible senior officer, of Borrower or any other Loan Party, or the general partner of, or the partner or one of the partners
required to bind, Borrower or any other Loan Party, as applicable.

 

“CPA”
means independent certified public accountants of recognized standing selected by Borrower or another Loan Party, as applicable,
and acceptable to Bank.

 

“Collateral”
means all property, assets and rights identified in this Agreement, the Security Agreement or the other Loan Documents in which
a Lien or other encumbrance in favor of or for the benefit of Bank is or has been granted or arises or has arisen, or may hereafter
be granted or arise, under or in connection with any Loan Document, to secure the payment or performance of any portion of the
Indebtedness.

 

“Collateral
Documents” means the security agreements, financing statements and other agreements for security identified on the attached
schedule of Loan Documents.

 

“Compliance
Certificate” means a Compliance Certificate in such form and detail as may be required by or otherwise satisfactory to
Bank, certified by an Authorized Officer of Borrower, certifying that, as of the date thereof, to the best of such Authorized Officer’s
knowledge, no Default or Event of Default shall have occurred and be continuing or exist, or if any Default or Event of Default
shall have occurred and be continuing or exist, specifying, in detail, the nature and period of existence thereof and any action
taken or proposed to be taken by Borrower and/or any other Loan Party in respect thereof, and also certifying as to whether Borrower
and/or any other Loan Party, as applicable, is/are in compliance with any financial covenant(s) contained in this Agreement and
as more particularly described in said Compliance Certificate (which Compliance Certificate shall set forth, in reasonable detail,
the calculations and the resultant ratios or financial tests of the Borrower and/or such Loan Party, as applicable, determined
thereunder).

 

     

     

    

 

“Consolidated”
or “consolidated” means, when used with reference to any financial term in this Agreement, the aggregate for
two or more persons of the amounts signified by such term for all such persons determined on a consolidated basis in accordance
with GAAP. Unless otherwise specified herein, references to "consolidated" financial statements or data of Borrower includes
consolidation with its Subsidiaries in accordance with GAAP.

 

“Debt”
means, as of any applicable date of determination, the total liabilities of a Person at such time, as determined in accordance
with GAAP. In the case of Borrower, the term "Debt" shall include, without limitation, the Indebtedness.

 

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

 

“Distributions”
means, in respect of any applicable Person(s), dividends on, or other payments or distributions on account of, or the setting apart
of money for a sinking or other analogous fund for, or the purchase, redemption, retirement or other acquisition of, any Equity
Interest of such Person(s) or of any warrants, options or other rights to acquire the same.

 

“Effective
Date” shall mean the date on which all the conditions precedent set forth in Section 2.6 have been satisfied.

 

“Environmental
Laws” means all laws, statutes, codes, ordinances, rules, regulations, orders, decrees and directives issued by any federal,
state, local, foreign or other governmental or quasi-governmental authority or body (or any agency, instrumentality or political
subdivision thereof) relating to the environment or pertaining to Hazardous Materials; any so-called “superfund” or
“superlien” law pertaining to Hazardous Materials on or about any Property at any time owned, leased or otherwise used
by Borrower or any of its Subsidiaries (if applicable), or any portion thereof, including, without limitation, those relating to
soil, surface, subsurface groundwater conditions and the condition of the ambient air; and any other federal, state, foreign or
local statute, law, ordinance, code, rule, regulation, order or decree regulating, relating to, or imposing liability or standards
of conduct concerning, any Hazardous Material, as now or at any time hereafter in effect.

 

“Equity Interest”
means, with respect to any Person, (i) all of the shares of capital stock of (or other ownership or profit interests in) such Person,
(ii) all of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of
(or other ownership or profit interests in) such Person, (iii) all of the securities convertible into or exchangeable for shares
of capital stock (or other ownership or profit interests in) such Person or warrants, rights or options for the purchase or acquisition
from such Person of such shares (or such other interests), and (iv) all of the other ownership or profit interests in such Person
(including, without limitation, partnership, member or trust interests therein), whether voting or nonvoting, and whether or not
such shares, warrants, options, rights or other interests are authorized or otherwise existing on any date of determination.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended, or any successor act or code.

 

    	 	2	 

     

    

 

“Event of
Default” means the occurrence or existence of any of the conditions or events set forth in Section 6 of this Agreement.

 

“GAAP”
means generally accepted accounting principles consistently applied.

 

“Guarantor”
or “Guarantors” means, as the context dictates, any Person(s) (other than Borrower) who shall, at any time,
guarantee or otherwise be or become obligated for the repayment of all or any part of the Indebtedness, including without limitation,
Frank E. Celli and James Chambers.

 

“Hazardous
Materials” means all of the following: any asbestos, petroleum, petroleum by-products, flammable explosives, radioactive
materials, and any hazardous or toxic materials, as defined in the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended (42 U.S.C. Sections 9601 et seq.), or in any other Environmental Law.

 

“Indebtedness”
means any and all present and future indebtedness, obligations or liabilities of the Borrower and/or any other Loan Party to the
Bank, howsoever arising, evidenced or incurred, whether absolute or contingent, direct or indirect, voluntary or involuntary, liquidated
or unliquidated, joint or several, now or hereafter existing or arising, due or to become due, whether known or unknown, and whether
originally payable to the Bank or to a third party and subsequently acquired by the Bank, including, without limitation, (a) any
and all direct indebtedness of the Borrower and/or any other Loan Party to the Bank, including indebtedness evidenced by any and
all promissory notes; (b) any and all indebtedness, obligations or liabilities of the Borrower and/or any other Loan Party to the
Bank arising under any guaranty where the Borrower and/or any other Loan Party has guaranteed the payment of indebtedness owing
to the Bank from a third party; (c) any and all indebtedness, obligations or liabilities of the Borrower and/or any other Loan
Party to the Bank arising from applications or agreements for the issuance of letters of credit; (d) late charges, loan fees or
charges and overdraft indebtedness; (e) any agreement to indemnify the Bank for environmental liability or to clean up hazardous
waste; (f) any and all indebtedness, obligations or liabilities for which the Borrower and/or any other Loan Party would otherwise
be liable to the Bank were it not for the invalidity, irregularity or unenforceability of them by reason of any bankruptcy, insolvency
or other law or order of any kind, or for any other reason, including, without limit, liability for interest and attorneys' fees
on, or in connection with, any of the Indebtedness from and after the filing by or against the Borrower and/or any other Loan Party
of a bankruptcy petition, whether an involuntary or voluntary bankruptcy case, including, without limitation, all attorneys' fees
and costs incurred in connection with motions for relief from stay, cash collateral motions, non-dischargeability motions, preference
liability motions, fraudulent conveyance liability motions, fraudulent transfer liability motions and all other motions brought
by the Borrower, any other Loan Party, the Bank or third parties in any way relating to the Bank's rights with respect to Borrower,
any other Loan Party or third party and/or affecting any collateral securing any obligation owed to Bank by the Borrower, any other
Loan Party or any third party, probate proceedings, on appeal or otherwise; (g) any and all amendments, modifications, restatements,
renewals and/or extensions of any of the above, including, without limit, amendments, modifications, restatements, renewals and/or
extensions which are evidenced by new or additional instruments, documents or agreements; (h) all costs incurred by Bank in establishing,
determining, continuing, or defending the validity or priority of its security interest, or in pursuing its rights and remedies
under this Agreement, the other Loan Documents or under any other agreement between Bank and the Borrower and/or any other Loan
Party or in connection with any proceeding involving Bank as a result of any financial accommodation to Borrower and/or any other
Loan Party; and (i) all costs of collecting Indebtedness, including, without limit, attorneys' fees and costs.

 

“Lien”
means any mortgage, pledge, encumbrance, security interest, assignment, lien or charge or other interest of any kind upon any property
or assets, whether real, personal or mixed, to secure any indebtedness, obligation or liability owed to or claimed by any Person,
whether arising under or based upon contract, law or otherwise.

 

    	 	3	 

     

    

 

“Liquid Assets”
shall mean, in respect of any applicable Person(s) and as of any applicable date of determination thereof, the sum of unrestricted
cash, unrestricted marketable securities, FDIC insured accounts and United States government securities of such person(s) at such
time, but excluding any assets held in a “401K” account, individual retirement account (IRA), pension or other type
of retirement account or annuity, Rule 144 securities, securities pledged to secure any debt whether or not the debt is currently
outstanding, securities not fully transferrable until conditions are met, and assets held in joint accounts (unless such other
joint owners of such accounts are also Guarantors).

 

“Loan(s)”
means each present or future loan, advance or other extension of credit made by Bank to or otherwise in favor of Borrower under
the following:

 

(a)          $1,000,000.00
secured revolving line of credit (the “Revolving Credit”).

 

“Loan Documents”
means this Agreement, the Collateral Documents, and any and all notes, instruments, documents, guarantees and agreements at any
time evidencing, governing, securing or otherwise relating to the Loan(s), including without limitation the Loan Documents listed
on the schedule to this Agreement.

 

“Loan Party”
means each Borrower, each Guarantor and each other Person who shall, at any time, be liable for the payment of all or any part
of the Indebtedness under the Loans or who shall own any property that is, at any time, subject to a Lien which secures all or
any part of the Indebtedness under the Loans.

 

“Master Revolving
Note” means that certain Master Revolving Note in the principal amount of $1,000,000, made by Borrower for the benefit
of the Bank dated as of even date herewith, as amended or restated from time to time.

 

“Material
Adverse Effect” means any act, event, condition or circumstance which has had or could have a material and adverse effect
on (i) the business, operations, condition (financial or otherwise), performance,
prospects, assets or liabilities of any Loan Party, (ii) the ability
of any Loan Party to perform its obligations under any Loan Document to which it is a party or by which it is bound, or the enforceability
of any of the Indebtedness or any Loan Document or any rights or remedies of Bank thereunder,
or (iii) any Loan Party’s interest in, or the value, perfection or priority of Bank’s security interest or lien in
any Collateral or the ability of Bank to realize on any Collateral.

 

“PBGC”
means the Pension Benefit Guaranty Corporation, or any successor thereto.

 

“Person”
or “person” means any individual, corporation, partnership, joint venture, limited liability company, association,
trust, unincorporated association, joint stock company, government, municipality, political subdivision or agency, or other entity.

 

“Property”
means any real or personal property now or at any time owned, occupied or operated by Borrower and/or any of its Subsidiaries (if
applicable).

 

“Subordinated
Debt" means any Debt of Borrower which has been subordinated to the Indebtedness pursuant to a subordination agreement
in form and content satisfactory to Bank.

 

    	 	4	 

     

    

 

“Subsidiary”
or “Subsidiaries” means as to any particular parent entity, any corporation, partnership, limited liability
company or other entity (whether now existing or hereafter organized or acquired) in which more than 50% of the outstanding equity
ownership interests having voting rights as of any applicable date of determination, shall be owned directly, or indirectly through
one or more Subsidiaries, by such parent entity.

 

“Tax Distributions”
means, in respect of any applicable Person, dividend payments and other Distributions made by such Person to its respective shareholders,
members or other Person(s) holding Equity Interests therein, as applicable, in an amount not to exceed the income tax liability,
if any, of such shareholders, members or other Person(s) arising or incurred directly as a result of the pass-through of income
items to such shareholders, members or other Person(s) as a result of such Person’s status as a Subchapter S corporation
under the United States Internal Revenue Code, as amended, or as a limited liability company, as applicable.

 

“Unencumbered”
shall mean, in respect of any property or asset of any Person(s), such property is free and clear of all liens (other than liens
to or in favor of Bank), and no lien of any nature whatsoever (other than liens in favor of Bank) shall be placed or exist upon
or in respect of any such property or asset.

 

“Uniform Commercial
Code” means the Michigan Uniform Commercial Code, as amended, supplemented, revised or replaced from time to time.

 

1.2           Accounting
Principles. Unless expressly provided to the contrary, all accounting and financial terms and calculations hereunder or
pursuant hereto shall be defined and determined in accordance with GAAP.

 

1.3           Section
Headings and References. Section headings and numbers have been set forth herein for convenience only; unless the contrary
is compelled by the context, everything contained in each Section applies equally to this entire Agreement.

 

1.4           Construction
and Interpretation. Unless the context of this Agreement clearly requires otherwise, references to the plural include the
singular, references to the singular include the plural, and the term “including” is not limiting. The words “hereof,”
“herein,” “hereby,” “hereunder,” and similar terms in this Agreement refer to this Agreement
as a whole and not to any particular provision of this Agreement. Neither this Agreement nor any uncertainty or ambiguity herein
shall be construed or resolved against Bank or Borrower, whether under any rule of construction or otherwise; on the contrary,
this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary meaning of the
words used so as to fairly accomplish the purposes and intentions of all parties hereto.

 

2.            LOANS;
GUARANTEES; COLLATERAL.

 

2.1          Loans.
This Agreement sets forth terms and conditions governing the Loans including without limitation the following:

 

(a)          Revolving
Credit. Subject to the terms and conditions of this Agreement, Bank agrees to make loans to Borrower under the Revolving Credit
on a revolving basis in such amount as Borrower shall request, pursuant to the Master Revolving Note, any time from the date hereof
until that note becomes due and payable (whether by demand, maturity, acceleration, or otherwise), up to an aggregate principal
amount outstanding at any time not to exceed the principal amount of that note as it may be amended from time to time.

 

    	 	5	 

     

    

 

(b)          Use
of Loan Proceeds. Borrower will use the proceeds of the Revolving Credit to refinance existing indebtedness owing from Bio
Hi Tech America, LLC owing to Bank, along with financing the Borrower’s working capital requirements.

 

(c)          Future
Loans. Unless Borrower and Bank expressly agree otherwise in writing, the Loans and all future advances under the Loans will
be subject to this Agreement.

 

(d)          Notes.
Each note evidencing one of the Loans shall bear interest at the rate(s) set forth therein. Each note may be prepaid only in accordance
with its terms. The principal, interest and any other amounts due under each Note shall be payable in the amounts and at the times
set forth therein, with its remaining balance due and payable on its respective maturity date or such earlier date that the note
becomes due and payable (whether by demand, acceleration, or otherwise).

 

(e)          Fees
for Loans. Borrower shall pay Bank the following fees for the Loans. Each such fee, when due, shall be fully earned and, when
paid, shall be non-refundable.

 

(i)          On
the date hereof Borrower shall pay Bank an upfront fee of $2,500.00 for the Loans, which fee is deemed earned on the date hereof
and when paid is irrevocable and non-refundable.

 

(ii)         
For the Revolving Credit, Borrower shall also pay to Bank an unused credit fee for the period from the date hereof to and the maturity
date of the Revolving Credit as set forth in the Master Revolving Note, equal to 0.50% per annum on the average daily excess of
the maximum amount of the Revolving Credit over the outstanding principal balance under the Master Revolving Note. Such unused
credit fee shall be (A) calculated for each calendar quarter (commencing with the quarter ending March 31, 2018), (B) payable on
the first Business Day of the succeeding calendar quarter (being in the first case, April 1, 2018), and (C) computed on the basis
of a year of 360 days and assessed for the actual number of days elapsed.

 

(f)          [Reserved].

 

2.2           Collateral.
To secure full and timely performance of Borrower’s covenants set out in this Agreement and to secure the payment of the
Loans, Borrower agrees to grant and assign a Lien upon, and security interest in, the Collateral identified and described in the
Security Agreement and the Financing Statements. Borrower authorizes Bank to file any initial Financing Statements and all amendments
describing any of the Collateral.

 

2.3           Guarantees.
Borrower agrees to cause the Guarantors to execute and deliver to Bank a guaranty of Borrower’s payment and performance of
its obligations under the Loans.

 

2.4           [Reserved].

 

2.5           Loan
Documents. Each Loan shall be evidenced by a promissory note or other agreement or evidence of indebtedness acceptable
to Bank, in each case, executed and delivered by Borrower unto Bank; and each Loan shall be subject to the terms, covenants and
conditions of each such promissory note or other agreement or evidence of indebtedness, together with this Agreement and the other
Loan Documents. The funding, disbursement and extension of any Loan to or in favor of Borrower shall be subject to the execution
and/or delivery to Bank of such Loan Documents as Bank may reasonably require, and shall be further subject to the satisfaction
of such other conditions and requirements as Bank may from time to time require.

 

    	 	6	 

     

    

 

2.6           Closing
Conditions. Bank’s obligations, if any, to provide any of the Loans under this Agreement are subject to Bank’s
receipt of the following:

 

(a)          Each
of the documents listed in the attached Closing Checklist, and each duly executed by the applicable Loan Party(ies);

 

(b)          Reimbursement
from Borrower for all costs and expenses then due in accordance with Section 14;

 

(c)          Such
other documents and completion of such other matters as Bank may reasonably deem necessary or appropriate.

 

3.            REPRESENTATIONS
AND WARRANTIES.  Borrower, for and on behalf of itself, hereby represents and warrants, and such representations and warranties
shall be deemed to be continuing representations and warranties during the entire life of this Agreement, and thereafter, so long
as any Indebtedness remains unpaid and outstanding:

 

3.1          Authority.
It is duly organized, validly existing and in good standing under the laws of the State of its incorporation or organization,
as applicable; it is duly qualified and authorized to do business in each jurisdiction where the character of its assets or the
nature of its activities makes such qualification necessary, and it has the legal power and authority to own its properties and
assets and to carry out its business as now being conducted in each such jurisdiction wherein such qualification is necessary;
execution, delivery and performance of this Agreement, and any and all other Loan Documents to which Borrower is a party or by
which it is otherwise bound, are within Borrower’s respective powers and authorities, have been duly authorized by all requisite
corporate or other necessary or appropriate action, and are not in contravention or violation of law or the terms of Borrower’s
organizational or other governing documents, and do not require the consent or approval of any governmental body, agency or authority.

 

3.2           Members.
The members of Borrower are identified on the attached Schedule of Members.

 

3.3           Enforceability
of Agreement and Loan Documents. This Agreement, and any other Loan Documents contemplated hereby, when executed, issued
and/or delivered by Borrower, or by which Borrower is otherwise bound, will be valid and binding and legally enforceable against
Borrower in accordance with their terms.

 

3.4           Non-Contravention.
The execution, delivery and performance of this Agreement, and any other Loan Documents required under or contemplated
by this Agreement to which Borrower is a party or by which it is otherwise bound, and the issuance of this Agreement and any such
other Loan Documents by Borrower, and the borrowings and other transactions contemplated hereby and thereby, are not in contravention
or violation of the unwaived terms of any indenture, agreement or undertaking to which Borrower is a party or by which it or any
of its property or assets is bound, and will not result in the creation or imposition of any Lien of any nature whatsoever upon
any of the property or assets of Borrower, except to or in favor of Bank.

 

3.5           [Reserved]

 

3.6           Litigation
or Proceedings. No litigation or other proceeding before any court or administrative agency is pending, or, to the knowledge
of Borrower or any of its officers, is threatened against Borrower, the outcome of which could result in a Material Adverse Effect.

 

    	 	7	 

     

    

 

3.7           Compliance
with Law. Borrower has complied with all applicable laws, rules, regulations and orders relating to Borrower or any aspect
of Borrower’s business or assets, including, without limit, all employment and labor, pension funding, workplace safety,
and environmental and hazardous materials laws, rules, regulations and orders, except to the extent that failure to comply therewith
count not reasonably be expected to have a Material Adverse Effect. Borrower agrees to indemnify and hold Bank harmless from any
and all violations by Borrower of any laws, rules, regulations and/or orders.

 

3.8           No
Liens. There are no Liens on any of Borrower’s Property or assets, except Permitted Encumbrances (as hereinafter
defined).

 

3.9           Locations;
Leases. All of Borrower’s assets and property are located at the places identified on the attached Schedule of Locations,
and at no other place. Borrower is in compliance with all leases for those locations and all leases of equipment used in Borrower’s
business.

 

3.10         Intellectual
Property. Borrower possesses and either owns, or has the right to use, to the extent required or applicable, all necessary
trademarks, trade names, copyrights, patents, patent rights and licenses, trade secrets and other intellectual property (“Intellectual
Property”) which is material to the conduct of its business as now operated. Borrower conducts its business without infringement
or, to its knowledge, claim of infringement of any other intellectual property rights of any other Person, except where such infringement
or claim of infringement could not have a Material Adverse Effect. There is no infringement or, to Borrower’s knowledge,
claim of infringement by others of any material Intellectual Property of Borrower.

 

3.11         No
Defaults. There exists no Default or Event of Default under any of the Indebtedness.

 

3.12         Financial
Statements; No Material Adverse Change. The most recent financial projections with respect to Borrower delivered to Bank
fairly present the projections of Borrower as of the date thereof and for the period(s) covered thereby in accordance with GAAP,
and there has been no material adverse change in the condition (financial or otherwise) of Borrower which would negatively affect
those projections in a material manner.

 

3.13         Subsidiaries.
As of the date of this Agreement, Borrower has no Subsidiaries, except the Guarantors as disclosed on the attached Schedule
of Subsidiaries, which Schedule sets forth the name, place of incorporation, and percentage of ownership of Borrower in each such
Subsidiary.

 

3.14         Regulation
T, U, or X; Margin Stock. Borrower is not engaged principally, or as one of its important activities, in the business of
extending credit to others for the purpose of purchasing or carrying “margin stock” or “margin securities”
within the meanings of Regulations T, U or X of the Board of Governors of the Federal Reserve System, or any regulations, interpretations
or rulings thereunder.

 

3.15         Legal
Name. Borrower’s true and correct legal name is that set forth on the signature page to this Agreement. Except as
disclosed in writing to Bank on or before the date of this Agreement, Borrower has not conducted business under any name other
than that set forth on the signature page to this Agreement.

 

3.16         Solvency.
Borrower is solvent and is able to pay its debts (including, without limit, trade debts) as they mature.

 

3.17         Taxes.
All taxes, assessments and other similar imposts and charges levied, assessed or imposed upon Borrower and/or any of its
property or assets have been paid, except to the extent being diligently contested in good faith.

 

    	 	8	 

     

    

 

3.18         Hazardous
Materials. Borrower has not used Hazardous Materials on, in, under or otherwise affecting any Property now or at any time
owned, occupied or operated by Borrower or upon which Borrower has a place of business in any manner which violates any Environmental
Law(s), to the extent that any such violation could result in a Material Adverse Effect. Borrower has never received any notice
of any violation of any Environmental Law(s), and to the best of Borrower’s knowledge, there have been no actions commenced
or threatened by any party against Borrower or any of the Property for non-compliance with any Environmental Law(s), which, in
any case, could result in a Material Adverse Effect.

 

3.19         Guarantors.
Each of the representations and warranties in Sections 3.1, 3.3 through 3.7, and 3.15 through 3.17 is true and correct mutatis
mutandis with respect to each of the Guarantors and, as applicable, the Loan Documents to which they are parties

 

4.            AFFIRMATIVE
COVENANTS. So long as Bank shall have any commitment or obligation, if any, to make or extend any Loans to or in favor of Borrower,
and/or so long as any Indebtedness remains unpaid and outstanding, Borrower covenants and agrees that it shall:

 

4.1          Financial
Statements; Reporting Requirements. Provide to Bank, or cause to be provided to Bank, the following, each of which shall
be prepared in accordance with GAAP, and shall be in form and detail acceptable to Bank:

 

(a)          As
soon as available, and in any event within 120 days after and as of the end of each fiscal year of BioHiTech Global, Inc., commencing
with the fiscal year ending December 31, 2017, annual CPA reviewed consolidating financial statements of BioHiTech Global, Inc.
(reflecting breakouts in the balance sheet and income statement for the Borrower) for and as of the end of each such fiscal year,
containing the balance sheet of BioHiTech Global, Inc. as of the close of each such fiscal year, statements of income and retained
earnings and a statement of cash flows of BioHiTech Global, Inc. for each such fiscal year, and such other comments and financial
details as are usually included in similar reports or as may be requested by Bank, certified by an Authorized Officer of BioHiTech
Global, Inc.

 

(b)          As
soon as available, and in any event within 35 days after and as of the end of each month commencing with the month ending January
31, 2018, internally prepared consolidated and consolidating financial statements of Borrower, containing the balance sheet of
Borrower as of the end of each such period, statements of income and retained earnings and a statement of cash flows for Borrower
for such period and for the portion of the fiscal year of Borrower through the end of the period then ending, and such other comments
and financial details as are usually included in similar reports or as may be requested by Bank, certified by an Authorized Officer
of Borrower.

 

(c)          [Reserved]

 

(d)          As
soon as available, and in any event no later than the earlier of fifteen (15) days after filing, and October 30 of every year,
federal income tax returns, together with all schedules, of each of Frank E. Celli and James Chambers, together with copies of
the annual personal financial statements of Frank E. Celli and James Chambers for and as of the end of each such calendar year,
containing the balance sheet of each such Person as of each such date and statements of income and contingent liabilities of each
such Person for each such annual period then ending, certified by each such Person as to accuracy and fairness.

 

    	 	9	 

     

    

 

(e)          As
soon as available, and in any event within 30 days of the end of each calendar quarter, such schedules, certificates, reports and
other information respecting all or any of Frank E. Celli’s and James Chambers’ Liquid Assets as Bank may request,
including brokerage account statements, in form and content satisfactory to Bank. Any schedule, certificate, report or other document
identifying any Liquid Asset shall be accompanied (if Bank so requests) by evidence of such Person’s ownership of the Liquid
Asset, evidence that the Liquid Asset is unencumbered and evidence of the Liquid Asset’s current value.

 

(f)          Promptly
after becoming aware of the occurrence or existence of any Default or Event of Default, or of any other condition, occurrence or
event which has had or could reasonably be expected to have a Material Adverse Effect, a written statement of an Authorized Officer
of Borrower setting forth the details of such Default or Event of Default, or such other condition or occurrence, and the action
which Borrower has taken or caused to be taken, or proposes to take or cause to be taken, with respect thereto.

 

(g)          Such
other information concerning Borrower, any Loan Party and/or any Guarantor as Bank shall reasonably request from time to time.

 

4.2          Financial
Covenants. Cause Frank E. Celli and James Chambers to maintain, in the aggregate, Unencumbered Liquid Assets having a value
(as such value is reasonably determined by Bank) equal to at least one hundred percent (100%) of all outstanding Indebtedness of
Borrower under the Loans. Such covenant to be measured as of the end of every calendar quarter.

 

4.3          Keeping
of Books and Records; Inspections and Audits. Keep proper books of record and account in which full and correct entries
shall be made of all of its financial transactions and its assets and businesses so as to permit the presentation of financial
statements (including, without limitation, any financial statements required to be delivered to Bank pursuant to this Agreement)
prepared in accordance with GAAP; permit Bank, or its representatives, at reasonable times and intervals and upon reasonable prior
notice (provided no such notice is needed if an Event of Default has occurred and is continuing), to visit all of Borrower’s
offices and to make inquiries as to Borrower’s respective financial matters with its respective directors, officers, employees,
and independent certified public accountants; and permit Bank, through Bank’s authorized attorneys, accountants and representatives,
to inspect, audit and examine Borrower’s books, accounts, records, ledgers and assets and properties of every kind and description,
wherever located, at all reasonable times during normal business hours and upon reasonable prior notice (provided no such notice
is needed if an Event of Default has occurred and is continuing). Borrower shall reimburse Bank for all reasonable costs and expenses
incurred by Bank in connection with such inspections, examinations and audits, and to pay to Bank such fees as Bank may reasonably
charge in respect of such inspections, examinations and audits, provided that, so long as no Event of Default has occurred, Borrower
shall be responsible for such fees for such inspections, examinations and audits not more than twice per calendar year.

 

4.4          Maintain
Insurance. Keep its insurable properties (including, without limitation, any Collateral at any time securing all or any
part of the Indebtedness) adequately insured and maintain (i) insurance against fire and other risks customarily insured against
under an “all-risk“ policy and such additional risks customarily insured against by companies engaged in the same or
a similar business to that of Borrower, (ii) necessary workers’ compensation insurance, (iii) public liability and product
liability insurance, and (iv) such other insurance as may be required by law or as may be reasonably required in writing by Bank,
all of which insurance shall be in such amounts, contain such terms, be in such form, be for such purposes, prepaid for such time
periods, and written by such companies as may be satisfactory to Bank. All such policies shall contain a provision whereby they
may not be canceled or materially amended except upon thirty (30) days’ prior written notice to Bank. Borrower will promptly
deliver to Bank, at Bank’s request, evidence satisfactory to Bank that such insurance has been so procured and, with respect
to casualty insurance, made payable to Bank. If Borrower fails to maintain satisfactory insurance as herein provided, Bank shall
have the option (but not the obligation) to do so, and Borrower agrees to repay Bank, upon demand, with interest at the highest
rate of interest applicable to any of the Indebtedness, all amounts so expended by Bank.

 

    	 	10	 

     

    

 

4.5          Pay
Taxes. Pay promptly and within the time that they can be paid without late charge, penalty or interest, all taxes, assessments
and similar imposts and charges of every kind and nature lawfully levied, assessed or imposed upon Borrower and/or its property
or assets, except to the extent being diligently contested in good faith and, if requested by Bank, bonded in an amount and manner
satisfactory to Bank. If Borrower fails to pay such taxes and assessments within the time they can be paid without penalty, late
charge or interest, Bank shall have the option (but not the obligation) to do so, and Borrower agrees to repay Bank, upon demand,
with interest at the highest rate of interest applicable to any of the Indebtedness, all amounts so expended by Bank.

 

4.6          Maintain
Existence. Do or cause to be done all things necessary to preserve and keep in full force and effect Borrower’s corporate
or other applicable existence, rights and franchises and comply with all applicable laws, ordinances and government rules and regulations
to which it is subject; continue to conduct and operate its business substantially as conducted and operated during the present
and preceding calendar year; at all times maintain, preserve and protect all franchises and trade names and preserve all the remainder
of its property and keep the same in good repair, working order and condition; maintain all permits, licenses, approvals and agreements
which it is required to maintain or comply with, where the failure to do so could result in a Material Adverse Effect; maintain
Borrower’s same place(s) of business, chief executive office or residence, as applicable, as currently exists, and not relocate
said address(es) without giving Bank ninety (90) days’ prior written notice of such proposed change, but the giving of such
notice shall not cure or remedy any Default or Event of Default caused by such change; and from time to time make, or cause to
be made, all needed and proper repairs, renewals, replacements, betterments and improvements thereto so that the business carried
on in connection therewith may be properly and advantageously conducted at all times.

 

4.7          Environmental
Laws. Comply, and cause each of its Subsidiaries (to the extent applicable) to comply, in all material respects with all
applicable Environmental Laws, and maintain all material permits, licenses and approvals required under applicable Environmental
Laws, where the failure to do so could result in a Material Adverse Effect; and promptly provide to Bank, immediately upon receipt
thereof, copies of any material correspondence, notice, pleading, citation, indictment, complaint, order, decree, or other document
from any source asserting or alleging a violation of any Environmental Laws by Borrower and/or any of its Subsidiaries, or of any
circumstance or condition which requires or may require a financial contribution by Borrower and/or any of its Subsidiaries, or
a clean-up, removal, remedial action or other response by or on behalf of Borrower and/or any of its Subsidiaries under applicable
Environmental Law(s), or which seeks damages or civil, criminal, or punitive penalties from Borrower and/or any of its Subsidiaries
for any violation or alleged violation of any Environmental Law(s) by Borrower and/or any of its Subsidiaries. Borrower hereby
indemnifies, saves and holds Bank, and any of Bank’s past, present and future officers, directors, shareholders, employees,
representatives and consultants, harmless from and against any and all losses, damages, suits, penalties, costs, liabilities and
expenses (including, without limitation, reasonable legal expenses and attorneys’ fees) incurred or arising out of any claim,
loss or damage of any property, injuries to or death of any persons, contamination of or adverse effects on the environment, or
other violation or asserted violation of any applicable Environmental Law(s); provided, however, that the foregoing indemnification
shall not be applicable, and Borrower shall not be liable for any such losses, damages, suits, penalties, costs, liabilities or
expenses, to the extent (but only to the extent) the same arise or result from any gross negligence or willful misconduct of Bank
or any of its agents or employees. The provisions of this Section shall survive repayment of the Indebtedness and satisfaction
of all obligations of Borrower to Bank and termination of this Agreement.

 

    	 	11	 

     

    

 

4.8          Maintain
Bank Accounts. Establish within 60 days after closing, and maintain all of Borrower’s and BioHiTech Global, Inc.’s
principal bank accounts with Bank and notify Bank immediately in writing of the establishment or existence of any other bank account,
deposit account or other account into which money may be deposited (other than with Bank); provided, however, providing any such
notice to Bank shall not waive the occurrence or existence of any Default or Event of Default arising or existing as a result of
the establishment or existence of any account(s) in violation of this Section.

 

4.9          ERISA
Compliance. At all times meet, and cause each of its Subsidiaries to meet, the minimum funding requirements of ERISA with
respect to any employee benefit plans subject to ERISA; promptly after Borrower knows or has reason to know of the occurrence of
any event, which would constitute a reportable event or prohibited transaction under ERISA, or that the PBGC or Borrower has instituted
or will institute proceedings to terminate an employee pension plan, deliver to Bank a certificate of an Authorized Officer of
Borrower setting forth details as to such event or proceedings and the action which Borrower proposes to take with respect thereto,
together with a copy of any notice of such event which may be required to be filed with the PBGC; and upon the request of Bank,
furnish to Bank (or cause the plan administrator to furnish Bank) a copy of the annual return (including all schedules and attachments)
for each plan covered by ERISA, and filed with the Internal Revenue Service by Borrower or any of its Subsidiaries not later than
ten (10) days after such report has been so filed. Borrower shall be permitted to voluntarily terminate employee pension or benefit
plans, so long as any such voluntary termination is done in accordance with ERISA and does not result in a material liability or
obligation to such Borrower and does not result in a Material Adverse Effect.

 

4.10        Subsidiaries.
Cause all of Borrower’s Subsidiaries to comply with the provisions of Sections 4.3 through 4.9 and 5.3 through 5.16 as if
expressly made by those Subsidiaries mutatis mutandis.

 

4.11        Treasury
Management Systems. Maintain, and cause BioHitech Global Inc. to maintain, at all times, its treasury management systems
and loan management systems with Comerica Bank or its Affiliates.

 

5.            NEGATIVE
COVENANTS. So long as Bank shall have any commitment or obligation, if any, to make or extend any Loans to or in favor of Borrower,
and/or so long as any Indebtedness remains unpaid and outstanding, Borrower covenants and agrees that it shall not, without the
prior written consent of Bank:

 

5.1          Dividends.
Declare or pay any dividends on, or make any other Distribution (whether by reduction of capital or otherwise).

 

5.2          Redeem
Stock. Purchase, redeem, retire or otherwise acquire any of its Equity Interests, or make any commitment to do so.

 

5.3          Liens.
Create, incur, assume or suffer to exist any Lien of any kind upon any of its property or assets, whether now owned or
hereafter acquired, other than the following (collectively, “Permitted Encumbrances”):

 

(a)          Liens
to or in favor of Bank;

 

    	 	12	 

     

    

 

(b)          Liens
for taxes, assessments or other governmental charges incurred in the ordinary course of business and for which no interest, late
charge or penalty is attaching or which is being contested in good faith by appropriate proceedings diligently pursued (provided
the period of time for such contestation does not exceed thirty (30) days and, if requested by Bank, bonded in an amount and manner
satisfactory to Bank;

 

(c)          Liens,
not delinquent, created by statute in connection with workers’ compensation, unemployment insurance, social security, old
age pensions (subject to the applicable provisions of this Agreement) and similar statutory obligations;

 

(d)          Purchase
money security interests to secure purchase money indebtedness of Borrower otherwise expressly permitted under this Agreement,
so long as such security interests arise or are created substantially contemporaneously with the purchase or acquisition by Borrower
of the respective property or assets to which such security interests relate and the incurrence of the respective purchase money
indebtedness which such security interests secure, secure only the respective purchase money indebtedness so incurred by Borrower
to enable Borrower to so purchase or acquire such property or assets, and no other Debt, and encumber only the respective property
or assets so purchased or acquired, and no other property or assets of Borrower;

 

(e)          Liens
in favor of mechanics, materialmen, carriers, warehousemen or other like statutory or common law Liens securing obligations incurred
in good faith in the ordinary course of business that are not yet due and payable; and

 

(f)          other
Liens (if any) existing as of the date hereof and described in the attached Schedule of Permitted Liens to secure Debt existing
and outstanding as of the date hereof, but no other Debt;

 

provided that, notwithstanding anything
herein to the contrary, Borrower shall not create, incur, assume or suffer to exist any Lien of any kind upon any of its property
or assets, whether now owned or hereafter acquired in favor of BioHiTech Global, Inc., or any of its Affiliates.

 

5.4          Debt.
Incur, create, assume or permit to exist any Debt of any kind or nature whatsoever, except (without duplication) for (a)
the Indebtedness, (b) Subordinated Debt, (c) existing indebtedness (if any) to the extent set forth in the attached Schedule of
Debt or in the most recent financial statements of Borrower delivered to Bank prior to the date of this Agreement, and (d) unsecured
trade indebtedness, utility indebtedness and non-extraordinary accounts payable incurred and paid in the ordinary course of business.

 

5.5          Loans
and Advances. Make loans, advances or extensions of credit to any Person, except sales on open account in the ordinary
course of business.

 

5.6          Transactions
with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower
except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are no
less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person.

 

5.7          Parent
and Affiliate Debt. Incur, create, assume or permit to exist any Debt of any kind or nature whatsoever from BioHiTech Global,
Inc., or any of its Affiliates, other than unsecured trade payables in connection with services rendered and equipment purchases
in the ordinary course of business.

 

5.8          Guaranties.
Guarantee or otherwise, directly or indirectly, in any way be or become responsible for obligations of any other Person,
except (i) guaranties in favor of Bank; and (ii) the endorsement of negotiable instruments in the ordinary course of business for
deposit or collection.

 

    	 	13	 

     

    

 

5.9          Subordinate
Indebtedness. Subordinate any indebtedness due to it from any Person to indebtedness of other creditors of such Person.

 

5.10        Asset
Dispositions; Dissolution; Mergers; Capital Structure; Business Purpose. (a) Sell, lease (as lessor), transfer or otherwise
dispose of any of its properties or assets, except (i) as to the sale of inventory in the ordinary course of business, or (ii)
asset sales in an aggregate amount during any fiscal year not in excess of One Hundred Thousand Dollars ($100,000.00); (b) change
its name, its corporate identity or structure, its form of organization or the state in which it has been formed or organized;
(c) dissolve or liquidate or consolidate with or merge into any other Person, or permit any other Person to merge into it; (d)
acquire all or substantially all the properties or assets of any other Person; (e) enter into any reorganization or recapitalization,
or reclassify its capital stock; (f) enter into any sale-leaseback transaction; (g) permit any levy, attachment or restraint to
be made affecting any of Borrower's assets; (h) permit any judicial officer or assignee to be appointed or to take possession of
any or all of Borrower's assets; (i) make any other change in Borrower's financial structure or in any of its business objects,
purposes or operations which, in the opinion of Bank, could result in a Material Adverse Effect; (j) enter into any transaction
not in the ordinary course of Borrower’s business; or (k) make any payment on account of any Subordinated Debt in violation
of the provisions of any subordination agreement between Bank and the applicable subordinated debt holder, or otherwise fail to
comply with the terms and conditions set forth in any such subordination agreement.

 

5.11        [Reserved]

 

5.12        Investments.
Purchase or hold beneficially any stock or other securities of, or make any investment or acquire any interest whatsoever
in, any other Person, except for (a) the Equity Interests of any Subsidiaries owned by Borrower on the date of this Agreement,
as more particularly described in the Schedule of Subsidiaries attached hereto, (b) certificates of deposit or time deposits with
Bank, and (c) direct obligations of the United States of America, or any agency thereof, maturing within one (1) year from the
date of acquisition thereof.

 

5.13        Apply
Proceeds to Purchase or Carry Margin Stock. Apply any of the proceeds of any loan, advance or other extension of credit
by Bank to or in favor of Borrower, directly or indirectly to the purchase or carrying of any “margin stock” or “margin
securities” within the meanings of Regulation T, U, or X of the Board of Governors of the Federal Reserve System, or any
regulations, interpretations or rulings thereunder; or extend credit to others directly or indirectly for the purpose of purchasing
or carrying any such margin stock or margin securities.

 

5.14        Pension
Plans; PBGC. Allow any fact, condition or event to occur or exist with respect to any employee pension or profit sharing
plan established or maintained by it which might constitute grounds for termination of any such plan or for the court appointment
of a trustee to administer any such plan; or permit any such plan to be the subject of termination proceedings (whether voluntary
or involuntary) from which termination proceedings there may result in a liability of Borrower to the PBGC which, in the opinion
of Bank, will result in a Material Adverse Effect.

 

5.15        Government
Regulation. (a) Be or become subject at any time to any law, regulation, or list of any government agency (including, without
limitation, the U.S. Office of Foreign Asset Control list) that prohibits or limits Bank from making any advance or extension of
credit to Borrower or from otherwise conducting business with Borrower, or (b) fail to provide documentary and other evidence of
Borrower’s identity as may be requested by Bank at any time to enable Bank to verify Borrower’s identity or to comply
with any applicable law or regulation, including, without limitation, Section 326 of the USA Patriot Act of 2001, 31 U.S.C. Section 5318.

 

    	 	14	 

     

    

 

5.16        Anti-Terrorism
Laws. (a) Conduct any business or engage in any transaction or dealing with any Person whose property or interests in property
is blocked or subject to blocking pursuant to Section 1 of Executive Order 13224 of September 23, 2001 (“Blocked Person”),
including the making or receiving of any contribution of funds, goods or services to or for the benefit of any Blocked Person,
(b) deal in, or otherwise engage in any transaction relating to, any Property or interests in Property blocked under Executive
Order No. 13224; or (c) engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading
or avoiding, or attempts to violate, any of the prohibitions set forth in the Executive Order No. 13224, the USA Patriot Act or
any other anti-terrorism law; or (d) fail to deliver to Bank any certification or other evidence requested by Bank confirming compliance
with this Section.

 

5.17        Accounting
Changes. Change its fiscal year or make any significant changes (a) in accounting treatment and reporting practices except
as permitted by GAAP and disclosed to Bank prior to use in any report required hereunder, or (b) in tax reporting treatment except
as permitted by law and disclosed to Bank.

 

6.            EVENTS
OF DEFAULT. An “Event of Default” shall be deemed to have occurred or exist under this Agreement upon the
occurrence and/or existence of any of the following conditions or events:

 

(a)          Borrower
and/or any other Loan Party shall fail to pay the principal of or interest on or shall otherwise fail to pay any other amount owing
by Borrower and/or such Loan Party to Bank, within five (5) days of when due, whether under any of the Indebtedness or otherwise,
and such default in payment shall continue unremedied or uncured beyond any applicable period of grace provided with respect thereto,
if any, in the relevant Loan Document(s);

 

(b)          any
representation, warranty, certification or statement made or deemed to have been made by Borrower and/or any other Loan Party herein,
or in any certificate, financial statement or other document or agreement delivered by or on behalf of Borrower and/or any such
Loan Party in connection with the Indebtedness or any of the Loan Documents shall prove to be untrue or incomplete in any material
respect;

 

(c)          Borrower
shall fail to observe or perform any condition, covenant or agreement set forth in Sections 4.1, 4.2, 4.3, 4.4, 4.6 or Section
5 herein;

 

(d)          Borrower
and/or any other Loan Party shall fail to observe or perform any condition, covenant or agreement of Borrower and/or any such Loan
Party set forth herein or in any other Loan Document (other than as provided in subparagraphs (a) and (c) above) or any other agreement
between any such Person(s) and Bank, and such failure continues for a period of 30 days after the earlier of written notice from
Bank to Borrower or the date upon which Borrower knew, or should have known, of the occurrence or existence of such failure;

 

(e)          if
there shall be any change, for any reason whatsoever, in the management, ownership or control of Borrower or any other Loan Party
which, in the sole discretion of Bank, could result in a Material Adverse Effect;

 

(f)          if
(i) any party subordinating its claims to that of Bank's terminates, rescinds, revokes or violates the terms of its subordination,
or (ii) any Loan Party (other than Borrower) dies or terminates, rescinds, revokes or violates the terms of any guaranty, pledge,
collateral assignment, subordination agreement or other document, instrument or agreement entered into by such Loan Party in favor
of Bank, including, without limitation, any document evidencing the pledge by such Loan Party of property that is subject to a
Lien which secures all or any part of the Indebtedness;

 

    	 	15	 

     

    

 

(g)          Borrower
and/or any other Loan Party shall (i) fail to pay when due any of its Debt (other than to Bank), or shall fail to observe or perform
any term, condition, covenant or agreement of Borrower and/or any such Loan Party set forth in any document, instrument or agreement
evidencing, securing or relating to such Debt, and such failure shall remain unremedied or uncured beyond any applicable period
of grace or cure, if any, provided with respect thereto so as to permit the holder(s) of such Debt to accelerate the maturity or
payment of such Debt, or (ii) or shall fail to observe or perform any term, condition, covenant or agreement of Borrower and/or
any such Loan Party set forth in any material agreement, contract, indenture, instrument or undertaking to which Borrower and/or
any such Loan Party is a party with any one or more third parties (other than Bank) or by which it may be otherwise bound, and
such failure could result in the acceleration of the maturity or payment of Borrower's indebtedness to others, whether under any
such agreement, contract, indenture, instrument or undertaking or otherwise, or which failure could result in a Material Adverse
Effect;

 

(h)          if
Borrower and/or any other Loan Party (i) become(s) insolvent or the subject of a voluntary or involuntary proceeding in bankruptcy,
or a reorganization, arrangement or creditor composition proceeding, (ii) cease(s) doing business as a going concern, (iii) is
enjoined restrained or in any way prevented by court order or other legal or administrative action or proceedings from continuing
to conduct all or any material part of its business affairs, (iv) is the subject of a dissolution, merger or consolidation, or
(v) has any of its property or assets attached, seized, subject to a writ or distress warrant, or come into the possession of any
trustee, receiver, controller, custodian, assignee for the benefit of creditors or any other person or entity having powers or
duties like or similar to the powers and duties of trustee, receiver, controller, custodian or assignee for the benefit of creditors,
and the same are not released, discharged or bonded against within thirty (30) days thereafter;

 

(i)          if
any reportable event, which the Bank determines constitutes grounds for the termination of any deferred compensation plan by the
PBGC or for the appointment by the appropriate United States District Court of a trustee to administer any such plan, shall have
occurred and be continuing thirty (30) days after written notice of such determination shall have been given to Borrower by Bank,
or any such plan shall be terminated within the meaning of Title IV of ERISA, or a trustee shall be appointed by the appropriate
United States District Court to administer any such plan, or the PBGC shall institute proceedings to terminate any plan;

 

(j)          if
(i) there shall be rendered against Borrower and/or any other Loan Party one or more judgments for the payment of money which has
or have become non-appealable and shall remain undischarged, unsatisfied by insurance and unstayed for more than thirty (30) days,
whether or not consecutive; or (ii) a levy, lien, writ of attachment or garnishment against any of the property or assets of Borrower
and/or any other Loan Party shall be issued and levied in any action(s) and not released or appealed and bonded in an amount and
manner satisfactory to Bank within thirty (30) days after such issuance and levy, or (iii) a settlement, or a series of related
settlements, is agreed upon by Borrower and/or any other Loan Party for the payment or money or the delivery of goods or services
by Borrower and/or such Loan Party;

 

(k)          if
(i) Bank deems itself insecure, in its commercially reasonable discretion, believing that the prospect of payment or performance
of any of the Indebtedness is impaired or shall fear deterioration, removal or waste of any of the Collateral; or (ii) in the opinion
of Bank, a Material Adverse Effect has resulted or occurred or could result or occur; or

 

    	 	16	 

     

    

 

(l)          the
occurrence or existence of any “Default” or “Event of Default”, as the case may be, set forth in any other
Loan Document.

 

7.            REMEDIES.
Upon the occurrence and at any time during the continuance or existence of any Event of Default, Bank may, with or without notice
to Borrower, declare all outstanding Indebtedness to be due and payable, whereupon all such Indebtedness then outstanding shall
immediately become due and payable, without further notice or demand, and any commitment or obligation, if any, on the part of
Bank to make or extend Loans shall immediately terminate. Further, upon the occurrence or at any time during the continuance or
existence of any Event of Default hereunder, Bank may collect, deal with and dispose of all or any part of any Collateral in any
manner permitted or authorized by the Uniform Commercial Code or other applicable law (including public or private sale), and after
deducting expenses (including, without limitation, reasonable attorneys’ fees and expenses), Bank may apply the proceeds
thereof in part or full payment of any of the Indebtedness, whether due or not, in any manner or order Bank elects. In addition
to the foregoing, upon the occurrence and at any time during the continuance or existence of any Event of Default hereunder, Bank
may exercise any and all rights and remedies available to it as a result thereof, whether under this Agreement or other Loan Documents,
at law (including, without limit, the Uniform Commercial Code), or otherwise. Notwithstanding anything to the contrary set forth
in any other Loan Document, Bank shall not be obligated to make or extend any Loans or advances to any Borrower(s) during the existence
of any Default or Event of Default.

 

8.            DEMAND
BASIS LOANS. Borrower hereby acknowledges and agrees that in the event that any of the Indebtedness shall at any time be on
a demand basis, Borrower’s compliance with the terms and conditions set forth herein, and the absence of any Event of Default
hereunder, shall not, in any way whatsoever, limit, restrict or otherwise affect or impair Bank’s right or ability to make
demand for payment of any or all of such Indebtedness which may be on a demand basis at any such time, in Bank’s sole and
absolute discretion, with or without reason or cause, and the existence of any Event of Default hereunder shall not be the sole
reason or basis for enabling Bank to make demand for payment of all or any part of such Indebtedness.

 

9.            WAIVERS
OF DEFAULTS; NO FORBEARANCE. No Event of Default shall be waived by Bank except in writing and a waiver of any Event of Default
shall not be a waiver of any other default or of the same default on a future occasion. No forbearance on the part of the Bank
in enforcing any of its rights or remedies under this Agreement or any other Loan Document, nor any renewal, extension or rearrangement
of any payment or covenant to be made or performed by Borrower hereunder or any such other Loan Document, shall constitute a waiver
of any of the terms of this Agreement or such Loan Document or of any such right or remedy. No single or partial exercise of any
right, power or privilege hereunder, or any delay in the exercise hereof, shall preclude other or further exercise of the rights
of the parties under this Agreement and/or the other Loan Documents.

 

10.          GOVERNING
LAW. THE PARTIES HEREBY AGREE THAT THIS AGREEMENT AND ALL OTHER DOCUMENTS, INSTRUMENTS AND AGREEMENTS RELATED TO THIS AGREEMENT
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF MICHIGAN, WITHOUT REGARD TO ITS CONFLICTS OF LAW
PROVISIONS.

 

    	 	17	 

     

    

 

11.          VENUE
AND JURISDICTION.  BORROWER AND BANK EACH HEREBY IRREVOCABLY AND UNCONDITIONALLY (I) CONSENTS AND SUBMITS TO THE SOLE AND EXCLUSIVE
JURISDICTION OF ANY STATE OR FEDERAL COURT LOCATED WITHIN THE STATE OF MICHIGAN, AND ANY APPELLATE COURT THEREOF, (II) AGREES THAT
ALL ACTIONS AND PROCEEDINGS BASED UPON, ARISING OUT OF, RELATING TO OR OTHERWISE CONCERNING THIS AGREEMENT OR ANY OTHER DOCUMENT,
INSTRUMENT OR AGREEMENT RELATED TO THIS AGREEMENT, INCLUDING ALL CLAIMS FOR RECOGNITION OR ENFORCEMENT OF ANY JUDGMENT, SHALL SOLELY
AND EXCLUSIVELY BE BROUGHT, HEARD, AND DETERMINED (LITIGATED) IN SUCH COURTS, (III) ACCEPTS FOR ITSELF AND IN CONNECTION WITH ITS
PROPERTIES, THE SOLE AND EXCLUSIVE JURISDICTION OF THE AFORESAID COURTS, (IV) WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO
THE LAYING OF VENUE OR BASED UPON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW OR HEREAFTER HAVE TO BRINGING OR MAINTAINING
ANY SUCH ACTION OR PROCEEDING IN SUCH JURISDICTION, AND (V) AGREES TO BE BOUND BY ANY JUDGMENT RENDERED THEREBY IN CONNECTION WITH
THIS AGREEMENT, OR ANY SUCH OTHER DOCUMENT, INSTRUMENT OR AGREEMENT. NOTHING HEREIN SHALL LIMIT THE RIGHT OF BANK TO BRING ANY
ACTION OR PROCEEDING AGAINST BORROWER OR ITS PROPERTIES IN THE COURTS OF ANY OTHER JURISDICTION IN CONNECTION WITH THE ENFORCEMENT
OF ANY LIENS OR SECURITY INTERESTS IN FAVOR OF BANK ON ANY OF BORROWER’S PROPERTIES OR ASSETS.

 

12.          SUCCESSORS
AND ASSIGNS. This Agreement shall inure to the benefit of and shall be binding upon the parties hereto and their respective
successors and assigns; provided, however, that Borrower shall not assign or transfer any of its respective rights or obligations
hereunder or otherwise in respect of any of the Indebtedness without the prior written consent of Bank.

 

13.          COUNTERPARTS.
This Agreement may be executed in several counterparts, each of which shall constitute an original instrument, but when taken together
shall constitute one and the same instrument.

 

14.          NOTICES.
Unless otherwise provided in this Agreement, all notices and other communications by any party to the other party(ies) relating
to this Agreement shall be in writing and shall be given by personal delivery, by United States mail, postage prepaid, by reputable
overnight courier or by facsimile, and addressed or delivered to the respective party(ies) at the addresses set forth below such
party’s signature to this Agreement, or to such other addresses as such party(ies) may from time to time specify to the other(s)
in writing. Requests for information made to Borrower by Bank from time to time hereunder may be made orally or in writing, at
Bank’s discretion.

 

15.          COSTS
AND EXPENSES. Borrower shall pay or reimburse Bank for (a) all costs, expenses, fees and charges paid or incurred by Bank (including,
without limitation, Bank's attorneys' fees and costs and/or fees, transfer charges and costs of Bank's in-house counsel) in connection
with the preparation, closing and consummation of this Agreement and/or the other Loan Documents and/or the Loans or transactions
contemplated hereby or thereby, or in connection with the administration or enforcement of this Agreement or any of the other Loan
Document, and (b) all stamp and other taxes and duties (except for taxes on the overall net income of Bank imposed by the jurisdiction
in which Bank's principal executive office is located) payable or determined to be payable in connection with the execution, delivery,
filing or recording of this Agreement and the other Loan Documents and the consummation of the transactions contemplated hereby,
and any and all liabilities with respect to or resulting from any delay in paying or omitting to pay such taxes or duties. In addition,
Borrower shall immediately and without demand reimburse Bank for all sums expended by Bank in connection with any action brought
by Bank in respect of any Default or Event of Default or to enforce any provision of this Agreement or the other Loan Documents
and/or to exercise or enforce any rights or remedies of Bank. Borrower authorizes and approves all advances and payments by Bank
for items described in this Section as Indebtedness secured by the Collateral.

 

    	 	18	 

     

    

 

16.          INDEMNIFICATION
AND HOLD HARMLESS. WITHOUT LIMITING ANY OTHER PROVISIONS OF THIS AGREEMENT, BORROWER AGREES TO INDEMNIFY AND HOLD BANK HARMLESS
FROM AND AGAINST ALL LOSSES, COSTS, DAMAGES, LIABILITIES AND EXPENSES, INCLUDING, WITHOUT LIMITATION, IN-HOUSE AND OUTSIDE ATTORNEYS’
FEES AND DISBURSEMENTS, INCURRED BY BANK IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS OR ANY LOANS OR TRANSACTIONS
CONTEMPLATED HEREBY OR THEREBY OR BY REASON OF ANY DEFAULT OR EVENT OF DEFAULT, OR ENFORCING THE OBLIGATIONS OF BORROWER OR ANY
LOAN PARTY UNDER THIS AGREEMENT OR ANY OF THE OTHER LOAN DOCUMENTS, AS APPLICABLE, OR IN EXERCISING ANY RIGHTS OR REMEDIES OF BANK
OR IN THE PROSECUTION OR DEFENSE OF ANY ACTION OR PROCEEDING CONCERNING ANY MATTER GROWING OUT OF OR CONNECTED WITH THIS AGREEMENT
OR ANY OF THE LOAN DOCUMENTS; PROVIDED, HOWEVER, THAT THE FOREGOING SHALL NOT BE APPLICABLE, AND THE BORROWER SHALL NOT BE LIABLE
FOR ANY SUCH LOSSES, COSTS, DAMAGES, LIABILITIES OR EXPENSES, TO THE EXTENT (BUT ONLY TO THE EXTENT) THE SAME ARISE OR RESULT FROM
THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF BANK OR ANY OF ITS AGENTS OR EMPLOYEES. THE PROVISIONS OF THIS SECTION SHALL SURVIVE
REPAYMENT OF THE INDEBTEDNESS AND SATISFACTION OF ALL OBLIGATIONS OF BORROWER TO BANK AND TERMINATION OF THIS AGREEMENT. 

 

17.          AMENDMENTS
AND WAIVERS.         All amendments to or waivers or terminations of this Agreement
or the other Loan Documents must be in writing. All prior agreements, understandings, representations, warranties, and negotiations
between the parties hereto with respect to the subject matter of this Agreement and the other Loan Documents, if any, are hereby
superseded and merged into this Agreement and the Loan Documents. Time is of the essence for the performance of all obligations
set forth in this Agreement. Each provision of this Agreement shall be severable from every other provision of this Agreement for
the purpose of determining the legal enforceability of any specific provision. Borrower acknowledges that Bank may provide information
regarding Borrower and the Loans to Bank's parent, Subsidiaries, Affiliates and service providers.

 

18.          [Reserved]

 

19.          REINSTATEMENT;
SEVERABILITY. Bank’s rights under this Agreement and the other Loan Documents shall be reinstated and revived, and the
enforceability of this Agreement and the other Loan Documents shall continue, with respect to any amount at any time paid on account
of the Indebtedness which thereafter shall be required to be restored or returned by Bank, all as though such amount had not been
paid. The rights of Bank created or granted herein and the enforceability of this Agreement and the other Loan Documents at all
times shall remain effective to cover the full amount of all the Indebtedness even though the Indebtedness, including any part
thereof or any other security or guaranty therefor, may be or hereafter may become invalid or otherwise unenforceable as against
Borrower.

 

20.          WAIVER
OF JURY TRIAL. BORROWER AND BANK ACKNOWLEDGE THAT THE RIGHT TO TRIAL BY JURY IS A CONSTITUTIONAL ONE, BUT THAT IT MAY BE WAIVED
UNDER CERTAIN CIRCUMSTANCES. TO THE EXTENT PERMITTED BY LAW, EACH PARTY, AFTER CONSULTING (OR HAVING HAD THE OPPORTUNITY TO CONSULT)
WITH COUNSEL OF THEIR CHOICE, KNOWINGLY AND VOLUNTARILY, AND FOR THEIR MUTUAL BENEFIT, WAIVE ANY RIGHT TO TRIAL BY JURY IN THE
EVENT OF LITIGATION REGARDING THE PERFORMANCE OR ENFORCEMENT OF, OR IN ANY WAY RELATED TO, THIS AGREEMENT OR THE INDEBTEDNESS.

 

[end of agreement—signature page follows]

 

    	 	19	 

     

    

 

This Credit Agreement is effective as of the day and year first
set forth above.

 

	Comerica Bank	 	BHT Financial LLC
	 	 	 	 
	By:	 	 	By:	BioHiTech Global, Inc.
	Name:	Jeff C. Andersen	 	Its:	Member
	Title:	Vice President	 	 	 
	 	 	By:	 
	Address for Notices:	 	Name:	Brian C. Essman
	 	 	Title:	Chief Financial Officer
	411 W. Lafayette Blvd.	 	 
	Detroit, Michigan 48226	 	Address for Notices:
	 	 	 
	 	 	80 Red Schoolhouse Road
	 	 	Chestnut Ridge, New York 10977

 

    	 	20

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