Document:

Exhibit 4.19

 

Promissory Note dated July 1, 2016, by and between Dougherty’s
Holdings, Inc.; Dougherty’s Pharmacy, Inc.; Dougherty’s Pharmacy El Paso, LLC; Dougherty’s Pharmacy Humble,
LLC; Dougherty’s Pharmacy McAlester, LLC; Dougherty’s Pharmacy Forest Park Dallas, LLC; Dougherty’s Pharmacy
Springtown, LLC; and First National Bank of Omaha.

 

PROMISSORY NOTE

 

	Principal	Loan Date	Maturity	Loan No	Call / Coll	Account	Officer	Initials
	$4,750,000.00	07-01-2016	07-01-2017	4571681	110	 	301013	 

 

References in the boxes
above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

Any item above containing
....... has been omitted due to text length limitations.

 

	Borrower: 	Dougherty's
    Holdings, Inc.;	Lender:	First National Bank of Omaha
	 	DOUGHERTY'S PHARMACY,
    INC.;
  Dougherty's Pharmacy El Paso LLC;
 Dougherty's Pharmacy Humble, LLC; 

Dougherty's
    Pharmacy McAlester, LLC;

Dougherty's Pharmacy
Forest Park Dallas, LLC; and 

Dougherty's Pharmacy Springtown, LLC

16250 Knoll Trail Ste 102

Dallas, TX 75248	 	
        Branch #042

        4500 Preston Road

        Frisco, TX 75034

 

	Principal Amount:  $4,750,000.00	Date of Note:   July 1,2016

 

PROMISE TO PAY. Dougherty's Holdings,
Inc.; DOUGHERTY'S PHARMACY, INC.; Dougherty's Pharmacy El Paso, LLC; Dougherty's Pharmacy Humble, LLC; Dougherty's Pharmacy McAlester,
LLC; Dougherty's Pharmacy Forest Park Dallas, LLC; and Dougherty's Pharmacy Springtown, LLC ("Borrower") jointly and
severally promise to pay to First National Bank of Omaha ("Lender"), or order, in lawful money of the United States
of America, the principal amount of Four Million Seven Hundred Fifty Thousand & 00/100 Dollars ($4,750,000.00) or so much
as may be outstanding, together with interest on the unpaid outstanding principal balance of each advance. Interest shall be calculated
from the date of each advance until repayment of each advance or maturity, whichever occurs first.

 

CHOICE OF USURY CEILING AND INTEREST RATE.
The interest rate on this Note has been implemented under the "Quarterly Ceiling" as referred to in Section 303.006
of the Texas Finance Code.

 

PAYMENT. Borrower will pay this loan
in one payment of all outstanding principal plus all accrued unpaid interest on July 1, 2017. In addition, Borrower will pay regular
monthly payments of all accrued unpaid interest due as of each payment date, beginning August 1, 2016, with all subsequent interest
payments to be due on the same day of each month after that. Unless otherwise agreed or required by applicable law, payments will
be applied to interest, principal, and expenses owing under the Note in an order determined by Lender. Borrower will pay Lender
at Lender's address shown above or at such other place as Lender may designate in writing. Notwithstanding any other provision
of this Note, Lender will not charge interest on any undisbursed loan proceeds. No scheduled payment, whether of principal or
interest or both, will be due unless sufficient loan funds have been disbursed by the scheduled payment date to justify the payment.

 

 

 

    	 	1	 

     

    

 

VARIABLE INTEREST RATE. The interest
rate on this Note is subject to change from time to time based on changes in an independent index which is the London Interbank
Offered Rate (commonly known as "LIBOR") for U.S. Dollar Deposits published by the Wall Street Journal as the "One
(1) Month LIBOR Rate" (the "Index"). The Index is not necessarily the lowest rate charged by Lender on its loans.
If the Index becomes unavailable during the term of this loan, Lender may designate a substitute index after notifying Borrower.
Lender will tell Borrower the current Index rate upon Borrower's request. The interest rate change will not occur more often than
each first (1st) day of every month during the term of the Note. The interest rate will be adjusted and determined without notice
to Borrower using the Index as of the date that is two (2) London Banking Days prior to each interest rate change date. "London
Banking Day" means any day, other than a Saturday or Sunday, on which commercial banking institutions in London, England,
are generally open for business. At Lender's option, the Index and/or the interest rate may be rounded upwards to the next higher
one one-hundredth of one percent (0.01%). If at any time the Index is less than zero, then it shall be deemed to be zero for the
purpose of calculating the interest rate on this Note. Borrower understands that Lender may make loans based on other rates as
well. The Index currently is 0.460% per annum. Interest prior to maturity on the unpaid principal balance of this Note will be
calculated as described in the "INTEREST CALCULATION METHOD" paragraph using a rate of 3.250 percentage points over
the Index, resulting in an initial rate of 3.710% per annum based on a year of 360 days. NOTICE: Under no circumstances
will the interest rate on this Note be more than the maximum rate allowed by applicable law. For purposes of this Note, the "maximum
rate allowed by applicable law" means the greater of (A) the maximum rate of interest permitted under federal or other law
applicable to the indebtedness evidenced by this Note, or (B) the "Quarterly Ceiling" as referred in Section 303.006
of the Texas Finance Code.

 

INTEREST CALCULATION METHOD. Interest
on this Note is computed on a 365/360 basis; that is, by applying the ratio of the interest rate over a year of 360 days, multiplied
by the outstanding principal balance, multiplied by the actual number of days the principal balance is outstanding, unless such
calculation would result in a usurious rate, in which case interest shall be calculated on a per diem basis of a year of 365 or
366 days, as the case may be. All interest payable under this Note is computed using this method.

 

PREPAYMENT. Borrower may pay without
penalty all or a portion of the amount owed earlier than it is due. Prepayment in full shall consist of payment of the remaining
unpaid principal balance together with all accrued and unpaid interest and all other amounts, costs and expenses for which Borrower
is responsible under this Note or any other agreement with Lender pertaining to this loan, and in no event will Borrower ever
be required to pay any unearned interest. Early payments will not, unless agreed to by Lender in writing, relieve Borrower
of Borrower's obligation to continue to make payments of accrued unpaid interest. Rather, early payments will reduce the principal
balance due. Borrower agrees not to send Lender payments marked "paid in full", "without recourse", or similar
language. If Borrower sends such a payment, Lender may accept it without losing any of Lender's rights under this Note, and Borrower
will remain obligated to pay any further amount owed to Lender. All written communications concerning disputed amounts, including
any check or other payment instrument that indicates that the payment constitutes "Payment In full" of the amount owed
or that is tendered with other conditions or limitations or as full satisfaction of a disputed amount must be mailed or delivered
to: First National Bank of Omaha, Branch #042, 4500 Preston Road, Frisco, TX 75034.

 

LATE CHARGE. If a payment is 10 days
or more late, Borrower will be charged 3.000% of the regularly scheduled payment or $25.00, whichever is greater.

 

POST MATURITY RATE. The Post Maturity
Rate on this Note is the lesser of (A) the maximum rate allowed by law or (B) the rate formed by increasing the applicable interest
rate on this Note by an additional 6.000 percentage point margin ("Post Maturity Rate Margin"), with the Post Maturity
Rate Margin applying to each succeeding interest rate change that would have applied had there been no acceleration. Borrower
will pay interest on all sums due after final maturity, whether by acceleration or otherwise, at that rate.

 

DEFAULT. Each of the following shall constitute an event
of default ("Event of Default") under this Note: Payment Default. Borrower falls to make any payment when due under
this Note.

 

 

 

    	 	2	 

     

    

 

Other Defaults. Borrower fails to comply with
or to perform any other term, obligation, covenant or condition contained in this Note or in any of the related documents or to
comply with or to perform any term, obligation, covenant or condition contained in any other agreement between Lender and Borrower.

 

Default In Favor of Third Parties. Borrower
or any Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any other agreement,
in favor of any other creditor or person that may materially affect any of Borrower's property or Borrower's ability to repay this
Note or perform Borrower's obligations under this Note or any of the related documents.

 

False Statements. Any warranty, representation
or statement made or furnished to Lender by Borrower or on Borrower's behalf, or made by Guarantor, or any other guarantor, endorser,
surety, or accommodation party, under this Note or the related documents in connection with the obtaining of the loan evidenced
by this Note or any security document directly or indirectly securing repayment of this Note is false or misleading in any material
respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

 

Insolvency. The dissolution or termination
of Borrower's existence as a going business, the insolvency of Borrower, the appointment of a receiver for any part of Borrower's
property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under
any bankruptcy or insolvency laws by or against Borrower.

 

Creditor or Forfeiture Proceedings. Commencement
of foreclosure or forfeiture proceedings, whether by judicial proceeding, self-help, repossession or any other method, by any creditor
of Borrower or by any governmental agency against any collateral securing the loan. This includes a garnishment of any of Borrower's
accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is a good faith dispute
by Borrower as to the validity or reasonableness of the claim which is the basis of the creditor or forfeiture proceeding and if
Borrower gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies or a surety bond
for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being an adequate reserve
or bond for the dispute.

 

Execution; Attachment. Any execution or attachment
is levied against the Collateral, and such execution or attachment is not set aside, discharged or stayed within thirty (30) days
after the same is levied.

 

Change in Zoning or Public Restriction. Any
change in any zoning ordinance or regulation or any other public restriction is enacted, adopted or implemented, that limits or
defines the uses which may be made of the Collateral such that the present or intended use of the Collateral, as specified in the
related documents, would be in violation of such zoning ordinance or regulation or public restriction, as changed.

 

Default Under Other Lien Documents. A default
occurs under any other mortgage, deed of trust or security agreement covering all or any portion of the Collateral.

 

Judgment. Unless adequately covered by insurance
in the opinion of Lender, the entry of a final judgment for the payment of money involving more than ten thousand dollars ($10,000.00)
against Borrower and the failure by Borrower to discharge the same, or cause it to be discharged, or bonded off to Lender's satisfaction,
within thirty (30) days from the date of the order, decree or process under which or pursuant to which such judgment was entered.

 

Events Affecting Guarantor. Any of the preceding
events occurs with respect to any Guarantor, or any other guarantor, endorser, surety, or accommodation party of any of the indebtedness
or any Guarantor, or any other guarantor, endorser, surety, or accommodation party dies or becomes incompetent, or revokes or disputes
the validity of, or liability under, any guaranty of the Indebtedness evidenced by this Note.

 

Change In Ownership. Any change in ownership
of twenty-five percent (25%) or more of the common stock of Borrower.

 

Adverse Change. A material adverse change occurs
in Borrower's Financial condition, and Lender believes in good faith that the prospect of payment or performance of this Note is
impaired.

 

 

 

    	 	3	 

     

    

 

LENDER'S RIGHTS. Upon default, Lender
may declare the entire indebtedness, including the unpaid principal balance under this Note, all accrued unpaid interest, and
all other amounts, costs and expenses for which Borrower is responsible under this Note or any other agreement with Lender pertaining
to this loan, immediately due, without notice, and then Borrower will pay that amount.

 

ATTORNEYS' FEES; EXPENSES. Lender may
hire an attorney to help collect this Note if Borrower does not pay, and Borrower will pay Lender's reasonable attorneys' tees.
Borrower also will pay Lender all other amounts Lender actually incurs as court costs, lawful fees for filing, recording, releasing
to any public office any instrument securing this Note; the reasonable cost actually expended for repossessing, storing, preparing
for sale, and selling any security; and fees for noting a lien on or transferring a certificate of title to any motor vehicle
offered as security for this Note, or premiums or identifiable charges received in connection with the sale of authorized insurance.

 

JURY WAIVER. Lender and Borrower hereby
waive the right to any jury trial in any action, proceeding, or counterclaim brought by either Lender or Borrower against the
other.

 

GOVERNING LAW. This Note will be governed
by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Texas without regard
to its conflicts of law provisions. This Note has been accepted by Lender in the State of Texas.

 

CHOICE OF VENUE. If there is a lawsuit,
and if the transaction evidenced by this Note occurred in Collin County, Borrower agrees upon Lender's request to submit to the
jurisdiction of the courts of Collin County, State of Texas.

 

DISHONORED CHECK CHARGE. Borrower will
pay a processing fee of $30.00 if any check given by Borrower to Lender as a payment on this loan is dishonored.

 

RIGHT OF SETOFF. After an Event of
Default, and to the extent permitted by applicable law, Lender reserves a right of setoff in all Borrower's accounts with Lender
(whether checking, savings, or some other account). This includes all accounts Borrower holds jointly with someone else and all
accounts Borrower may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for
which setoff would be prohibited by law. Borrower authorizes Lender, to the extent permitted by applicable law, to charge or setoff
all sums owing on the indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all
such accounts to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.

 

COLLATERAL. Borrower acknowledges this
Note is secured by a Commercial Security Agreement dated July 1, 2016, and any and all other security agreements or documents
and any and all other collateral agreements or documents associated with this Loan or Note whether now existing or hereafter arising.

 

LINE OF CREDIT. This Note evidences
a revolving line of credit. Advances under this Note may be requested either orally or in writing by Borrower or as provided in
this paragraph. Lender may, but need not, require that all oral requests be confirmed in writing. All communications, instructions,
or directions by telephone or otherwise to Lender are to be directed to Lender's office shown above. Borrower agrees to be liable
for all sums either: (A) advanced in accordance with the instructions of an authorized person or (B) credited to any of Borrower's
accounts with Lender. The unpaid principal balance owing on this Note at any time may be evidenced by endorsements on this Note
or by Lender's internal records, including daily computer print-outs. Lender will have no obligation to advance funds under this
Note if: (A) Borrower or any guarantor is in default under the terms of this Note or any agreement that Borrower or any guarantor
has with Lender, including any agreement made in connection with the signing of this Note; (B) Borrower or any guarantor ceases
doing business or is insolvent; (C) any guarantor seeks, claims or otherwise attempts to limit, modify or revoke such guarantor's
guarantee of this Note or any other loan with Lender; (D) Borrower has applied funds provided pursuant to this Note for purposes
other than those authorized by Lender; or (E) Lender in good faith believes itself insecure. This revolving line of credit shall
not be subject to Ch. 346 of the Texas Finance Code.

 

 

 

    	 	4	 

     

    

 

FINANCIAL STATEMENTS. Borrower agrees
to provide Lender with such financial statements and other related information at such frequencies and in such detail as Lender
may reasonably request.

 

ERRORS AND OMISSIONS. Borrower agrees,
if requested by Lender, to fully cooperate in the correction, if necessary, in the reasonable discretion of Lender of any and
all loan closing documents so that all documents accurately describe the loan between Lender and Borrower. Borrower agrees to
assume all costs including by way of illustration and not limitation, actual expenses, legal fees and marketing losses for failing
to reasonably comply with Lender requests within thirty (30) days.

 

U.S.A. PATRIOT ACT. To help the government
fight the funding of terrorism and money laundering activities, the USA PATRIOT Act requires all banks to obtain and verify the
identity of each person or business that opens an account. When Borrower opens an account Lender will ask Borrower for information
that will allow Lender to properly identify Borrower and Lender will verify that information. If Lender cannot properly verify
identity within 30 calendar days, Lender reserves the right to deem all of the balance and accrued interest due and payable immediately.

 

ELECTRONIC COPIES. Lender may copy,
electronically or otherwise, and thereafter destroy, the originals of this Agreement and/or Related Documents in the regular course
of Lender 's business. All such copies produced from an electronic form or by any other reliable means (i.e., photographic image
or facsimile) shall in all respects be considered equivalent to an original, and Borrower hereby waives any rights or objections
to the use of such copies.

 

CROSS DEFAULT. An Event of Default,
beyond the applicable cure period, if any, or an Event of Default under any other Loan or any Related Document will constitute
an Event of Default under this Agreement and a default and an Event of Default under any other agreement by Borrower or any affiliate
or subsidiary of Borrower with or in favor of Lender and under any evidence of any Loan or Indebtedness held by Lender, whether
or not such is specified therein. Borrower acknowledges that some Loan Documents will be preprinted forms and that it is the intent
of Borrower and Lender that all Loans and Guaranties by Borrower or any affiliate or subsidiary of Borrower with or in favor of
Lender be cross-defaulted with each other.

 

CONSENT TO PARTICIPATION. Borrower
agrees and consents to Lender's sale or transfer, whether now or later, or one or more participation interest in this loan to
one or more purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation whatsoever, to any
one or more purchasers, or potential purchasers, any information or knowledge Lender may have about Borrower or about any other
mailer relating to the Loan, and Borrower hereby waives any rights to privacy it may have with respect to such matters. Borrower
additionally waives any and all notices of sale of participation interest, as well as all notices of any repurchase of such participation
interests. Borrower also agrees that the purchasers of any such participation interest will be considered as the absolute owners
of such interests in the Loan and will have all the rights granted under the participation agreement or agreements governing the
sale of such participation interests. Borrower further waives all rights of offset or counterclaim that it may have now or later
against Lender or against any purchaser of such a participation interest and unconditionally agrees that either Lender or such
purchaser may enforce Borrower's obligation under the Loan irrespective of the failure or insolvency of any holder of any interest
in the Loan. Borrower further agrees that the purchaser of any such participation interests may enforce its interest irrespective
of any personal claims or defenses that Borrower may have against Lender.

 

FARM SERVICE AGENCY (FSA) LOAN REQUIREMENT.
If this is an FSA Loan, then it shall be an event of default if any loan proceeds are used for a purpose that will contribute to
excessive erosion of highly erodible land or  the conversion of wetland to produce or to make possible tile production of an agricultural
commodity, further explained in 7 CFR Part 1940. Subpart G, Exhibit M.

 

RENEWAL AND EXTENSION. This Note is
given in renewal and extension and not in novation of the following described indebtedness: This Promissory Note is a modification,
amendment, renewal, or replacement of the terms and conditions of indebtedness of Borrower as set forth in a Promissory Note dated
June 1, 2015, and shall include all renewals, modifications and extensions of such documents.

 

 

    	 	5	 

     

    

 

SUCCESSOR INTERESTS. The terms of this
Note shall be binding upon Borrower, and upon Borrower's heirs, personal representatives, successors and assigns, and shall inure
to the benefit of Lender and its successors and assigns.

 

GENERAL PROVISIONS. If any part of this
Note cannot be enforced, this fact will not affect the rest of the Note. Borrower does not agree or intend to
pay, and Lender does not agree or intend to contract for, charge, collect, take, reserve or receive (collectively referred to herein
as "charge or collect"), any amount in the nature of interest or in the nature of a fee for this loan, which would in
any way or event (including demand, prepayment, or acceleration) cause Lender to charge or collect more for this loan than the
maximum Lender would be permitted to charge or collect by federal law or the law of the State of Texas (as applicable). Any such
excess interest or unauthorized fee shall, instead of anything stated to the contrary, be
applied first to reduce the principal balance of this loan, and when the principal has been paid in full, be refunded to Borrower.
The right to accelerate maturity of sums due under this Note does not include the right to accelerate any interest which has not
otherwise accrued on the date of such acceleration, and Lender does not intend to charge or collect any unearned interest in the
event of acceleration. All sums paid or agreed to be paid to Lender for the use, forbearance or detention of sums due hereunder
shall, to the extent permitted by applicable law, be amortized, prorated, allocated and spread throughout the full term of the
loan evidenced by this Note until payment in full so that the rate or amount of interest on account of the loan evidenced hereby
does not exceed the applicable usury ceiling. Lender may delay or forgo enforcing any of its rights or remedies under this Note
without losing them. Each Borrower understands and agrees that, with or without notice Borrower, Lender may with respect to any
other Borrower (a) make one or more additional secured or unsecured loans or otherwise extend additional credit; (b) alter, compromise,
renew, extend, accelerate, or otherwise change one or more times the time for payment or other terms of any indebtedness, including
increases and decreases of the rate of interest on the indebtedness; (c) exchange, enforce, waive, subordinate, fail or decide
not to perfect, and release any security, with or without the substitution of new collateral; (d) apply such security and direct
the order or manner of sale thereof, including without limitation, any non-judicial sale permitted by the terms of the controlling
security agreements, as Lender in its discretion may determine; (e) release, substitute, agree not to sue, or deal with any one
or more of Borrower's sureties, endorsers, or other guarantors on any terms or in any manner Lender may choose; and (f) determine
how, when and what application of payments and credits shall be made on any other indebtedness owing by such other Borrower. Borrower
and any other person who signs, guarantees or endorses this Note to the extent allowed by law, waive presentment, demand for payment,
notice of dishonor, notice of intent to accelerate the maturity of this Note, and notice of acceleration of the maturity of this
Note. Upon any change in the terms of this Note, and unless otherwise expressly stated in writing, no party who signs this Note,
whether as maker, guarantor, accommodation maker or endorser, shall be released from liability. All such parties agree that Lender
may renew or extend (repeatedly and for any length of time) this loan or release any party or guarantor or collateral; or impair,
fail to realize upon or perfect Lender's security interest in the collateral without the consent of or notice to anyone. All such
parties also agree that Lender may modify this loan without the consent of or notice to anyone other than the party with whom the
modification is made. The obligations under this Note are joint and several.

 

 

    	 	6	 

     

    

 

 

PRIOR TO SIGNING THIS NOTE, EACH BORROWER
READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS NOTE, INCLUDING THE VARIABLE INTEREST RATE PROVISIONS. EACH BORROWER AGREES TO THE
TERMS OF THE NOTE.

 

BORROWER ACKNOWLEDGES RECEIPT OF A COMPLETED
COPY OF THIS PROMISSORY NOTE. BORROWER:

 

 

 

 

 

 

 

 

LENDER:

 

 

 

 

    	 	7Exhibit 4.20

 

Commercial Security Agreement dated July 1, 2016, by and among Dougherty’s Holdings, Inc.; Dougherty’s
Pharmacy, Inc.; Dougherty’s Pharmacy El Paso, LLC; Dougherty’s Pharmacy Humble, LLC; Dougherty’s Pharmacy McAlester,
LLC; Dougherty’s Pharmacy Forest Park Dallas, LLC; and Dougherty’s Pharmacy Springtown, LLC (as “Grantors”)
and First National Bank of Omaha.

 

COMMERCIAL SECURITY AGREEMENT

 

	Principal	Loan Date	Maturity	Loan No	Call / Coll	Account	Officer	Initials
	$4,750,000.00	07-01-2016	07-01-2017	4571681	110	 	301013	 

 

References
in the boxes above are for Lender's use only and do not limit the applicability of this document to any particular loan or item.

 

Any item above containing “***”
has been omitted due to text length limitations.

 

	Grantor: 	Dougherty's
    Holdings, Inc.;	Lender:	First National Bank of Omaha
	 	Dougherty’s Pharmacy, Inc.;
  Dougherty's Pharmacy El Paso LLC;
 Dougherty's Pharmacy Humble, LLC; 

Dougherty's
    Pharmacy McAlester, LLC;

Dougherty's Pharmacy
Forest Park Dallas, LLC; and 

Dougherty's Pharmacy Springtown, LLC

16250 Knoll Trail Ste 102

Dallas, TX 75248	 

         
	
        Branch #M2

        4500 Preston Road

        Frisco, TX 75034

 

 

THIS COMMERCIAL SECURITY AGREEMENT dated
July 1, 2016, is made and executed between Dougherty's Holdings, Inc.; DOUGHERTY'S PHARMACY, INC.; Dougherty's Pharmacy El Paso,
LLC; Dougherty's Pharmacy Humble, LLC; Dougherty’s Pharmacy McAlester, LLC; Dougherty's Pharmacy Forest Park Dallas, LLC;
and Dougherty's Pharmacy Springtown, LLC (“Grantor”) and First National Bank of Omaha (“Lender”)

 

GRANT OF SECURITY INTEREST. For valuable
consideration, Grantor grants to Lender a security interest in the Collateral to secure the Indebtedness and agrees that Lender
shall have the rights stated in this Agreement with respect to the Collateral, in addition to all other rights which Lender may
have by law.

 

COLLATERAL DESCRIPTION. The word “Collateral” as used in this Agreement means the following described property, whether now owned or hereafter acquired, whether now existing
or hereafter arising, and wherever located, in which Grantor is giving to Lender a security interest for the payment of the Indebtedness
and performance of all other obligations under the Note and this Agreement:

 

All inventory, equipment, accounts
(including but not limited to all health-care-insurance receivables), chattel paper, instruments, (including but not limited to
all promissory notes), letter-of-credit rights, letters of credit, documents, deposit accounts, investment property, money, other
rights to payment and performance, and general intangibles (including but not limited to all software and all payment intangibles);
and all, gas and other minerals before extraction; all oil, gas, other minerals and accounts constituting as-extracted collateral;
all fixtures; all timber to be cut; all attachments, accessions, accessories, fittings, increases, tools, parts, repairs, supplies,
and commingled goads relating to the foregoing property, and all additions, replacements of and substitutions for all or any part
of the foregoing property; all insurance refunds relating to the foregoing property; all good will relating to the foregoing property;
all records and data and embedded software relating to the foregoing property, and all equipment, inventory and software to utilize,
create, maintain and process any such records and data on electronic media; and all supporting obligations relating to the foregoing
property; all whether now existing or hereafter arising, whether now owned or hereafter acquired or whether now or hereafter subject
to any rights in the foregoing property; and all products and proceeds (including but not limited to all insurance payments) or
relating to the foregoing property.

 

 

 

    	 	1	 

     

    

 

In addition, the word “Collateral”
also includes all the following, whether now owned or hereafter acquired, whether now existing or hereafter arising, and wherever
located:

 

(A)       All
accessions, attachments, accessories, tools, parts, supplies, replacements of and additions to any of the collateral described
herein, whether added now or later.

 

(B)       All
products and produce of any of the property described in this Collateral section.

 

(C)       All
accounts, general intangibles, instruments, rents, monies, payments, and all other rights, arising out of a sale, lease, consignment
or other disposition of any of the property described in this Collateral section.

 

(D)       All
proceeds (including insurance proceeds) from the sale, destruction, loss, or other disposition of any of the property described
in this Collateral section, and sums due from a third party who has damaged or destroyed the Collateral or from that party's insurer,
whether due to judgment, settlement or other process.

 

(E)       All records and data relating
to any of the property described in this Collateral section, whether in the form of a writing, photograph, microfilm, microfiche,
or electronic media, together with all of Grantor's right, title, and interest in and to all computer software required to utilize,
create, maintain, and process any such records or data on electronic media.

 

CROSS-COLLATERALIZATION. In addition
to the Note, this Agreement secures all obligations, debts and liabilities, plus interest thereon, of Grantor to Lender, or any
one or more of them, as well as all claims by Lender against Grantor or any one or more of them, whether now existing or hereafter
arising, whether related or unrelated to the purpose of the Note, whether voluntary or otherwise, whether due or not due, direct
or indirect, determined or undetermined, absolute or contingent, liquidated or unliquidated, whether Grantor may be liable individually
or jointly with others, whether obligated as guarantor, surety, accommodation party or otherwise. However, this Agreement shall
not secure. and the “Indebtedness” shall not include, any obligations arising under Subchapters E and F of Chapter 342
of the Texas Finance Code, as amended.

 

FUTURE ADVANCES. In addition to the
Note, this Agreement secures all future advances made by Lender to Grantor regardless of whether the advances are made a) pursuant
to a commitment or b) for the same purposes.

 

RIGHT OF SETOFF. After an Event of Default,
and to the extent permitted by applicable law, Lender reserves a right of setoff in all Grantor's accounts with Lender (whether
checking, savings, or some other account). This includes all accounts Grantor holds jointly with someone else and all accounts
Grantor may open in the future. However, this does not include any IRA or Keogh accounts, or any trust accounts for which setoff
would be prohibited by law. Grantor authorizes Lender, to the extent permitted by applicable law, to charge or setoff all sums
owing on the Indebtedness against any and all such accounts, and, at Lender's option, to administratively freeze all such accounts
to allow Lender to protect Lender's charge and setoff rights provided in this paragraph.

 

GRANTOR'S REPRESENTATIONS AND WARRANTIES
WITH RESPECT TO THE COLLATERAL With respect to the Collateral, Grantor represents and promises to Lender that:

 

Perfection of Security Interest.
Grantor agrees to take whatever actions are requested by Lender to perfect and continue Lender's security interest in the Collateral
upon request of Lender, Grantor will deliver to Lender any and all of the documents evidencing or constituting the Collateral,
and Grantor will note Lender's interest upon any and all chattel paper and instruments if not delivered to Lender for possession
by Lender. This is a continuing Security Agreement and will continue in effect even though all or any part of the indebtedness
paid in full and even though for a period of time Grantor may not be indebted to Lender.

 

 

 

    	 	2	 

     

    

 

Notices to Lender. Grantor will promptly
notify Lender in writing at Lender's address shown above (or such other addresses as Lender may designate from time to time) prior
to any (1) change in Grantor's name; (2) change in Grantor's assumed business name(s): (3) change in the management of any Corporation
or in the management or in the members or managers of the limited liability company Grantor; (4) change in the authorized signer(s);
(5) change in Grantor's principal office address; (6) change in Grantor's state of organization; (7) conversion of Grantor to a
new or different type of business entity; or (8) change in any other aspect of Grantor that directly or indirectly relates to any
agreements between Grantor and Lender. No change in Grantor's name or state of organization will take effect until after Lender
has received notice.

 

No Violation. The execution and delivery
of this Agreement will not violate any law or agreement governing Grantor, or to which Grantor is a party, and its certificate
or articles of incorporation and bylaws do not prohibit any term or condition of this Agreement, and its membership agreement does
not prohibit any term or condition of this Agreement.

 

Enforceability of Collateral. To
the extent the Collateral consists of accounts, chattel paper, or general intangibles, as defined by the Uniform Commercial Code,
the Collateral is enforceable in accordance with its terms, is genuine, and fully complies with all applicable laws and regulations
concerning form, content and manner of preparation and execution, and all persons appearing to be obligated on the Collateral have
authority and capacity to contract and are in fact obligated as they appear to be on the Collateral. At the time any account becomes
subject to a security interest in favor of Lender, the account shall be a good and valid account representing an undisputed, bona
fide indebtedness incurred by the account debtor, for merchandise held subject to delivery instructions or previously shipped or
delivered pursuant to a contract of safe, or for services previously performed by Grantor with or for the account debtor. So long
as this Agreement remains in effect, Grantor shall not, without Lender's prior written consent, compromise, settle, adjust, or
extend payment under or with regard to any such Accounts. There shall be no setoffs or counterclaims against any of the Collateral,
and no agreement shall have been made under which any deductions or discounts may be claimed concerning the Collateral except those
disclosed by Lender in writing.

 

Location of the Collateral. Except
in the ordinary course of Grantor's business, Grantor agrees to keep the Collateral (or to the extent the Collateral consists of
intangible property such as accounts or general intangibles, the records concerning the Collateral) at Grantor's address shown
above or at such other locations as are acceptable to Lender. Upon Lender's request, Grantor will deliver to Lender in form satisfactory
to Lender a schedule of real properties and Collateral locations relating to Grantor's operations, including without limitation
the following: (1) all real property Grantor owns or is purchasing: (2) all real property Grantor renting or leasing: (3) all storage
facilities Grantor owns, rents, leases, or uses: and (4) all other properties where Collaterals or may be located.

 

Removal of the Collateral. Except
in the ordinary course of Grantor's business, including the sales of inventory, Grantor shall not remove the Collateral from its
existing location without Lender's prior written consent. To the extent that the Collateral consists of vehicles or other titled
property, Grantor shall not take or permit any action which would require application for certificates of title for vehicles outside
the State of Texas, without Lender's prior written consent Grantor shall, whenever requested, advise Lender of the exact location
of the Collateral.

 

Transactions involving Collateral.
Except for inventory sold or accounts collected in the ordinary course of Grantor's business, or as otherwise provided for in this
Agreement, Grantor shall not sell, offer to sell, or otherwise transfer or dispose of the Collateral. While Grantor is not in default
under this Agreement Grantor may sell inventory, but only in the ordinary course of its business and only to buyers who qualify
as a buyer in the ordinary course of business. A sale in the ordinary course of Grantor's business does not include a transfer
in party or total satisfaction of a debt or any bulk sale. Grantor shall not pledge, mortgage, encumber or otherwise permit the
Collateral to be subject to any Lien, security interest, encumbrance, or charge, other than the security interest provided for
in this Agreement, without the prior written consent of Lender. This includes security interests even if junior in right to the
security interests granted under this Agreement. Unless waived by Lender, all proceeds from any disposition of the Collateral (for
whatever reason) shall be held in trust for Lender and shall not be commingled with any other funds; provided however, this requirement
shall not constitute consent by Lender to any sale or other disposition. Upon receipt, Grantor shall immediately deliver any such
proceeds to Lender.

 

 

 

    	 	3	 

     

    

 

Title. Grantor represents and warrants
to Lender that Grantor holds good and marketable title to the Collateral, free and clear of all liens and encumbrances except for
the lien of this Agreement. No financing statement covering any of the Collateral is on file in any public office other than those
which reflect the security interest created by this Agreement or to which Lender has specifically consented. Grantor shall defend
Lender's rights in the Collateral against the claims and demands of all other persons.

 

Repairs and Maintenance. Grantor
agrees to keep and maintain, and to cause others to keep and maintain, the Collateral in good order, repair and condition at all
times while this Agreement remains in effect. Grantor further agrees to pay when due all claims for work done on, or services rendered
or material furnished in connection with the Collateral so that no lien or encumbrance may ever attach to or be filed against the
Collateral.

 

Inspection of Collateral. Lender
and Lender's designated representatives and agents shall have the right at all reasonable times to examine and inspect the Collateral
wherever located.

 

Taxes, Assessments and Liens. Grantor
will pay when due all taxes, assessments and liens upon the Collateral’s use or operation, upon this Agreement, upon any
promissory note or notes evidencing the Indebtedness, or upon any of the other Related Documents. Grantor may withhold any such
payment or may elect to contest any item if Grantor is in good faith conducting an appropriate proceeding to contest the obligation
to pay and so long as Lender's interest in the Collateral not jeopardized in Lender's sole opinion. In any contest Grantor shall
defend itself and Lender and shall satisfy any final adverse judgment before enforcement against the Collateral. Grantor shall
name Lender as an additional obligee under any surety bond furnished in the contest proceedings. Grantor further agrees to furnish
Lender with evidence that such taxes, assessments, and governmental and other charges have been paid in full and in a timely manner.
Grantor may withhold any such payment or may elect to contest any lien if Grantor is in good faith conducting an appropriate proceeding
to contest the obligation to pay and so long as lender's interest in the Collateral is not jeopardized.

 

Compliance with Governmental Requirements.
Grantor shall comply promptly with all laws, ordinances, rules and regulations of all governmental authorities, now or hereafter
in effect, applicable to the ownership production, disposition, or use of the Collateral, including all laws or regulations relating
to the undue erosion of highly-erodible land or relating to the conversion of wetlands for the production of an agricultural product
or commodity. Grantor may contest in good faith any such law, ordinance or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Lenders interest in the Collateral, In Lender's opinion, is not jeopardized.

 

Hazardous Substances. Grantor represents
and warrants that the Collateral never has been, and never will be so long as this Agreement remains a lien on the Collateral,
used in violation of any Environmental Laws or for release or threatened release of any Hazardous Substance. The representations
and warranties contained herein are based on Grantor's due diligence in investigating the Collateral for Hazardous Substances.
Grantor hereby (1) releases and waives any future claims against Lender for indemnity or contribution in the event Grantor becomes
liable for cleanup or other costs under any Environmental Laws, and (2) agrees to indemnify, defend, and hold harmless Lender against
any and all claims and losses resulting tram a breach of this provision of this Agreement. This obligation to indemnify and defend
shall survive the payment of the Indebtedness and the satisfaction of this Agreement.

 

Maintenance of Casualty Insurance.
Grantor shall procure and maintain all risks insurance, including without limitation fire, theft and liability coverage together
with such other insurance as Lender may require with respect to the Collateral, in form, amounts, coverages and basis reasonably
acceptable to Lender. Grantor, upon request of Lender, will deliver to Lender from time to time the policies or certificates of
insurance in form satisfactory to Lender, including stipulations that coverages will not be cancelled or diminished without at
least thirty (30) days' prior written notice to Lender and not including any disclaimer of the insurer's liability for failure
to give such a notice. Each insurance policy also shall include an endorsement providing that coverage in favor of Lender will
not be impaired in any way by any act, omission or default of Grantor or any other person. In connection with all policies covering
assets in which Lender holds or is offered a security interest, Grantor will provide Lender with such loss payable or other endorsements
as Lender may require. If Grantor at any time fails to obtain or maintain any insurance as required under this Agreement, Lender
may (but shall not be obligated to) obtain such insurance as Lender deems appropriate, including Lender so chooses “single
interest insurance,” which will cover only Lenders interest in the Collateral.

 

 

    	 	4	 

     

    

 

 

Application of Insurance
Proceeds. Grantor shall promptly notify Lender of any loss or damage to the Collateral, whether or not such casualty or loss
is covered by insurance. Lender may make proof of loss if Grantor fails to do so within fifteen (15) days of the casualty.
All proceeds of any insurance on the Collateral, Including accrued proceeds thereon, shall be held by Lender as part of the
Collateral. If Lender consents to repair or replacement of the damaged or destroyed Collateral, Lender shall, upon
satisfactory proof of expenditure, pay or reimburse Grantor from the proceeds for the reasonable cost of repair or
restoration. If Lender does not consent to repair or replacement of the Collateral, Lender shall retain a sufficient amount
of the proceeds to pay all of  the Indebtedness, and shall pay the balance to Grantor. Any proceeds which have not been
disbursed within six (6) months after their receipt and which Grantor has not committed to the repair or restoration of the
Collateral shall be used to prepay the Indebtedness.

 

Insurance Reports. Grantor, upon
request of Lender, shall furnish to Lender reports on each existing policy of insurance showing such information as Lender may
reasonably request including the following: (1) the name of the Insurer: (2) the risks insured; (3) the amount of the policy; (4)
the property insured; (5) the then current value on the basis of which Insurance has been obtained and the manner of determining
that value: and (6) the expiration date of the policy. In addition, Grantor shall upon request by Lender (however not more often
than annually) have an independent appraiser satisfactory to Lender determine, as applicable, the cash value or replacement cost
of the Collateral.

 

Financing Statements. Grantor
authorizes Lender to file a UCC financing statement, or alternatively, a copy of this Agreement to perfect Lender's security
interest. At Lender's request Grantor additionally agrees to sign all other documents that are necessary to perfect, protect,
and continue Lender's security interest in the Property. Grantor will pay all filing fees, title transfer fees, and other
fees and costs involved unless prohibited by law or unless Lender is required by law to pay such tees and costs. Grantor
irrevocably appoints Lender to execute documents necessary to transfer title if there is a default Lender may file a copy of
this Agreement as a financing statement.

 

GRANTOR'S RIGHT TO POSSESSION AND TO COLLECT
ACCOUNTS. Until default and except as otherwise provided below with respect to accounts, Grantor may have possession of the
tangible personal property and beneficial use of all the Collateral and may use any lawful manner not inconsistent with this Agreement
or the Related Documents, provided that Grantor's right to possession and beneficial use shall not apply to any Collateral beneficial
possession of the Collateral by Lender is required by law to perfect Lender's security interest in such Collateral. Until otherwise
notified by Lender, Grantor may collect any of the Collateral consisting of accounts. After an Event of Default, Lender may exercise
its rights to collect the accounts and to notify account debtors to make payments directly lender for application to the Indebtedness.
If Lender at any time has possession of any Collateral, whether before or after an Event of Default, Lender shall be deemed to
have exercised reasonable care in the custody and preservation of the Collateral if Lender takes such action for that purpose as
Grantor shall request or as Lender, in Lender's sole discretion, shall deem appropriate under the circumstances, but failure to
honor any request by Grantor shall not of itself be deemed to be a failure to exercise reasonable care. Lender shall not be required
to take any steps necessary to preserve any rights in the Collateral against prior parties, nor to protect, preserve or maintain
any security Interest given to secure the Indebtedness.

 

LENDER'S EXPENDITURES. If any action
or proceeding is commenced that would materially affect Lender's interest in the Collateral or if Grantor fails to comply with
any provision to this Agreement or any Related Documents, Including but not limited to Grantor's failure to discharge or pay when
due any amounts Grantor is required to discharge or pay under this Agreement or any Related Documents, Lender on Grantor's behalf
may (but shall not be obligated to) take any action that Lender deems appropriate, Including but not limited to discharging or
paying all taxes, liens, security interests, encumbrances and other claims, at any time levied or placed on the Collateral and
paying all costs for insuring, maintaining and preserving the Collateral. All such expenditures paid by Lender for such purposes
will then bear interest at the Note rate from the date paid by Lender to the date at repayment by Grantor. To the extent permitted
by applicable law, all such expenses will become a partial the indebtedness and, all Lenders option, will (A) be payable on demand;
(B) be added to the balance of the Note and be apportioned among and be payable with any installment payments to become due during
either (1) the term of any applicable insurance policy; or (2) the remaining term of the Note; or (C) be treated as a balloon payment
which will be due and payable at the Note's maturity. The Agreement also will secure payment of these amounts. Such right shall
be in addition to all other rights and remedies to which Lender may be entitled upon Default.

 

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

 

Payment Default. Grantor tails to make any payment when
due under the Indebtedness.

 

 

 

    	 	5	 

     

    

 

Other Defaults. Grantor fails to
comply with or to perform any other term, obligation, covenant or condition contained in this Agreement or in any of the Related
Documents or to comply with or to perform any term, obligation, covenant or condition contained in any other agreement between
Lender and Grantor.

 

Default in Favor of Third Parties.
Any guarantor or Grantor defaults under any loan, extension of credit, security agreement, purchase or sales agreement, or any
other agreement, in favor of any other creditor or person that may materially affect any of any guarantor's or Grantors property
or ability to perform their respective obligations under this Agreement or any of the Related Documents.

 

False Statements. Any warranty, representation
or statement made or furnished to Lender by Grantor or on Grantor's behalf under this Agreement or the Related Documents is false
or misleading in any material respect, either now or at the time made or furnished or becomes false or misleading at any time thereafter.

 

Defective Collateralization. This
Agreement or any of the Related Documents ceases to be in full force and effect (including failure to any collateral document to
create a valid and perfected security interest or lien) at any time and for any reason.

 

Insolvency. The dissolution or termination
of Grantor's existence as a going business, the insolvency of Grantor, the appointment of a receiver for any part of Grantor's
property, any assignment for the benefit of creditors, any type of creditor workout, or the commencement of any proceeding under
any bankruptcy or insolvency laws by or against Grantor.

 

Creditor or Forfeiture Proceedings.
Commencement of foreclosure or forfeiture proceedings, whether by judicial proceeding, sell-help, repossession or any other method,
by any creditor at Grantor or by any governmental agency against any collateral securing the Indebtedness. This includes a garnishment
of any of Grantors accounts, including deposit accounts, with Lender. However, this Event of Default shall not apply if there is
a good faith dispute by Grantor as to the validity or reasonableness of the claim which is the basis of the creditor or forfeited
proceeding and if Grantor gives Lender written notice of the creditor or forfeiture proceeding and deposits with Lender monies
or a surety bond for the creditor or forfeiture proceeding, in an amount determined by Lender, in its sole discretion, as being
an adequate reserve or bond for the dispute.

 

Events Affecting Guarantor. Any of
the preceding events occurs with respect any Guarantor of any of the Indebtedness or Guarantor dies or becomes incompetent or revokes
or disputes the validity of, or liability under, any Guaranty of the Indebtedness.

 

Adverse Change. A material adverse
change occurs in Grantor's financial condition, or Lender believes the prospect of payment or performance of the Indebtedness is
impaired.

 

RIGHTS AND REMEDIES ON DEFAULT. If an
Event of Default occurs under this Agreement, at any time thereafter, Lender shall have all the rights of a secured party under
the Texas Uniform Commercial Code. In addition and without limitation, Lender may exercise any one or more of the following rights
and remedies:

 

Accelerate Indebtedness. Lender may
declare the entire Indebtedness immediately due and payable, without notice of any kind to Grantor.

 

Assemble Collateral. Lender may require
Grantor to deliver to Lender all or any portion of the Collateral and any and all certificates of title and other documents relating
to tile Collateral. Lender may require Grantor to assemble the Collateral and make it available to Lender at a place to be designated
by Lender. Lender also shall have full power to enter, provided Lender does so without a breach of the peace or a trespass, upon
the property of Grantor to take possession at and remove the Collateral. If the Collateral contains other goods not covered by
this Agreement at the time of repossession, Grantor agrees Lender may take such other goods, provided that Lender makes reasonable
efforts to return them to Grantor after repossession.

 

 

 

    	 	6	 

     

    

 

Sell the Collateral. Lender shall
have full power to .sell, lease, transfer, or otherwise deal with tie Collateral or proceeds thereof in Lenders own name or that
of Grantor. Lender may sell the Collateral at public auction or private sale. Unless the Collateral threatens to decline speedily
in value or is of a type customarily sold on a recognized market, Lender will give Grantor, and other persons as required by law,
reasonable notice of the time and place of any public sale, or the time after which any private sale or any other disposition of
the Collateral is to be made. However, no notice need be provided to any person who, after Event of Default occurs, enters into
and authenticates an agreement waiving that person's right to notification of sale. The requirements of reasonable notice shall
be met it such notice is given at least ten (10) days before the time of the sale or disposition. Any expenses relating to the
disposition of the Collateral, including without limitation the expenses all retaking, holding, insuring, preparing for sale and
selling the Collateral, shall become a part of the Indebtedness secured by this Agreement and shall be payable on demand, with
interest at the Note rate from date of expenditure until repaid.

 

Appoint Receiver. Lender shall have
the right to have a receiver appointed to take possession of all or any part of the Collateral, with the power to protect and preserve
the Collateral, to operate the Collateral preceding foreclosure or sale, and to collect the rents from the Collateral and apply
the proceeds, over and above the cost of the receivership, against the Indebtedness. The receiver may serve without bond if permitted
by law. Lenders right to the appointment of a receiver shall exist whether or not the apparent value of the Collateral exceeds
the Indebtedness by a substantial amount. Employment by Lender shall not disqualify a person from serving as a receiver.

 

Collect Revenues, Apply Accounts.
Lender, either itself or through a receiver, may collect the payments, rents, income, and revenues from the Collateral. Lender
may at any time in Lender's discretion transfer any Collateral into Lender's own name or that at Lender's nominee and receive the
payments, rents, income, and revenues here from and hold the same as security for the Indebtedness or apply it to payment of the
Indebtedness in such order of preference as Lender may determine. Insofar as the Collateral consists of accounts, general intangibles,
insurance policies, instruments. chattel paper, choses in action, or similar property, Lender may demand, collect, receipt for,
settle, compromise, adjust, sue for, foreclose, or realize on the Collateral as Lender may determine, whether or not indebtedness
or Collateral is then due. For these purposes, Lender may, on behalf of and in the name of Grantor, receive, open and dispose of
mail addressed to Grantor; change any address to which mail and payments are to be sent; and endorse notes, checks, drafts, money
orders, documents of title, instruments and items pertaining to payment, shipment, or storage of any Collateral. To facilitate
collection, Lender may notify account debtors and obligors on any Collateral to make payments directly to Lender.

 

Obtain Deficiency. If Lender chooses
to sell any or all of the Collateral, Lender may obtain a judgment against Grantor for any deficiency remaining on the Indebtedness
due to Lender after application of all amounts received from the exercise of the rights provided in this Agreement. Grantor shall
be liable for a deficiency even if the transaction described in this subsection is a sale of accounts or chattel paper.

 

Other Rights and Remedies. Lender
shall have all the rights and remedies of a secured creditor under the provisions of the Uniform Commercial Code, as may be amended
from time to time. In addition, Lender shall have and may exercise any or all other rights and remedies ii may have available at
law, in equity, or otherwise.

 

Election of Remedies. Except as may
be prohibited by applicable law, all of Lander's rights and remedies, whether evidenced by this Agreement. The Related Documents,
or by any other writing, shall be cumulative and may be exercised singularly or concurrently. Election by Lender to pursue any
remedy shall not exclude pursuit of any other remedy, and an election to make expenditures or to take action to perform an obligation
of Grantor under this Agreement, after Grantor's failure to perform, shall not affect Lender's right to declare a default and exercise
its remedies.

 

ELECTRONIC COPIES. Lender may copy,
electronically or otherwise, and thereafter destroy, the originals of this Agreement and/or Related Documents in the regular course
of Lender's business. All such copies produced from an electronic form or by any other reliable means (i.e., photographic image
or facsimile) shall in all respects be considered equivalent of an original, and Borrower hereby waives any rights or objections
to the use of such copies.

 

 

 

    	 	7	 

     

    

 

MISCELLANEOUS PROVISIONS. The following
miscellaneous provisions are a part of this Agreement:

 

Amendments. This Agreement, together
with any Related Documents, constitutes the entire understanding and agreement of the parties as to the matters set forth in this
Agreement. No alteration of or amendment to this Agreement shall be effective unless given in writing and signed by the party or
parties sought to be charged or bound by the alteration or amendment.

 

Attorney’s Fees; Expenses.
Grantor agrees to pay upon demand all of Lender's costs and expenses, including Lender's reasonable attorneys' fees and Lender’s
legal expenses, incurred in connection with the enforcement of this Agreement. Lender may hire or pay someone else to help enforce
this Agreement, and Grantor shall pay the costs and expenses of such enforcement. Costs and expenses include Lender's reasonable
attorneys' fees and legal expenses whether or not there is a lawsuit, including Lender's reasonable attorneys' fees and legal expenses
for bankruptcy proceedings (including efforts to modify or vacate any automatic stay or injunction), appeals, and any anticipated
post-judgment collection services. Grantor also shall pay all court costs and such additional fees as may be directed by the court.

 

Caption Headings. Caption headings
in this Agreement are for convenience purposes only and are not to be used to interpret or define the provisions of this Agreement.

 

Governing Law. This Agreement will
be governed by federal law applicable to Lender and, to the extent not preempted by federal law, the laws of the State of Texas
without regard to its conflicts of law provisions. This Agreement has been accepted by Lender in the State of Texas.

 

Choice of Venue. If there is a lawsuit,
and if the transaction evidenced by this Agreement occurred in Collin County. Grantor agrees upon Lender's request to submit to
the jurisdiction of the courts of Collin County, State of Texas.

 

Joint and Several Liability. All
obligations of Grantor under this Agreement shall be joint and several, and all references to Grantor shall mean each and every
Grantor. This means that each Grantor signing below is responsible for all obligations in this Agreement. Where any one or more
of the parties is a corporation, partnership, limited liability company or similar entity, it is not necessary for Lender to inquire
into the powers of any of the officers, directors, partners, members, or their agents acting or purporting to act on the entity's
behalf, and any obligations made or created in reliance upon the professed exercise of such powers shall be guaranteed under this
Agreement.

 

No Waiver by Lender. Lender shall
not be deemed to have waived any rights under this Agreement unless such waiver is given in writing and signed by Lender. No delay
or omission on the part of Lender in exercising any right shall operate as a waiver of such right or any other right. A waiver
by Lender of a provision of this Agreement shall not prejudice or constitute a waiver of Lender's right otherwise to demand strict
compliance with that provision or any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing between
Lender and Grantor, shall constitute a waiver of any of Lender's rights or of any of Grantor's obligations as to any future transactions.
Whenever the consent of Lender is required under this Agreement, the granting of such consent by Lender in any Instance shall not
constitute continuing consent to subsequent Instances where such consent is required and in all cases such consent may be granted
or withheld in the sale discretion of Lender.

 

Notices. Any notice required to
be given under this Agreement shall be given in writing, and shall be effective when actually delivered, when actually
received by telefacsimile (unless otherwise required by law). When deposited with a nationally recognized overnight courier,
or, if mailed, when deposited in the United States mail, as first class, certified or registered mail postage prepaid,
directed to the addresses shown near the beginning of this Agreement. Any party may change its address for notices under this
Agreement by giving formal written notice to the other parties, specifying that the purpose of the notice is to change the
party's address. For notice purposes. Grantor agrees to keep Lender informed at all times of Grantor's current address.
Unless otherwise provided or required by law, if there is more than one Grantor, any notice given by Lender to any Grantor
is deemed to be notice given to all Grantors.

 

Power of Attorney. Grantor hereby
appoints Lender as Grantor's irrevocable attorney-in-fact for the purpose of executing any documents necessary to perfect, amend,
or to continue the security interest granted in this Agreement or to demand termination of filings of other secured parties. Lender
may at any time, and without further authorization from Grantor, file a carbon, photographic or other reproduction of any financing
statement or of this Agreement for use as a financing statement. Grantor will reimburse Lender for all expenses for the perfection
and the continuation of the perfection of Lender's security interest in the Collateral.

 

 

 

    	 	8	 

     

    

 

Severability. If a court of competent
of jurisdiction finds any provision at this Agreement to be illegal, invalid, or unenforceable as to any person or circumstance,
that finding shall not make the offending provision illegal, invalid, or unenforceable as to any other person or circumstance.
If feasible, the offending provision shall be considered modified so that it becomes legal, valid and enforceable. If the offending
provision cannot be so modified, it shall be considered deleted from this Agreement. Unless otherwise required by law, the illegality,
invalidity, or unenforceability of any provision of this Agreement shall not affect the legality, validity or enforceability of
any other provision of this Agreement.

 

Successors and Assigns. Subject to
any limitations stated in this Agreement on transfer of Grantor's interest, this Agreement shall be binding upon and inure to the
benefit of the parties, their successors and assigns. If ownership of the Collateral becomes vested in a person other than Grantor,
Lender, without notice to Grantor, may deal with Grantor's successors with reference to this Agreement and the Indebtedness by
way of forbearance or extension without releasing Grantor from the obligations of this Agreement or liability under the Indebtedness.

 

Survival of Representations and Warranties.
All representations, warranties, and agreements made by Grantor in this Agreement shall survive the execution and delivery of this
Agreement, shall be continuing in nature, and shall remain in full force and effect until such time as Grantor's Indebtedness shall
be paid in full.

 

Time is of the Essence. Time is of
the essence in the performance of this Agreement.

 

Waive Jury. All parties to this Agreement
hereby waive the right to any jury trial in any action, proceeding, or counterclaim brought by any party against any other party.

 

DEFINITIONS. The following capitalized words
and terms shall have the following meanings when used in this Agreement. Unless specifically stated to the contrary, all references
to dollar amounts shall mean amounts in lawful money of the United States of America. Words and terms used in the singular shall
include the plural, and the plural shall include the singular. as the context may require. Words and terms not otherwise defined
in this Agreement shall have the meanings attributed to such terms in the Uniform Commercial Code.

 

Agreement. The word “Agreement”
means this Commercial Security Agreement as this Commercial Security Agreement may be amended or modified from time to time, together
with all exhibits and schedules attached to this Commercial Security Agreement from time to time.

 

Borrower. The word “Borrower” means Dougherty's Holdings, Inc.: DOUGHERTY'S PHARMACY, INC.; Dougherty's Pharmacy El Paso, LLC; Dougherty's Pharmacy Humble, LLC;
Dougherty's Pharmacy McAlester, LLC; Dougherty's Pharmacy Forest Park Dallas, LLC; and Dougherty's Pharmacy Springtown, LLC and
includes all co-signers and co-makers signing the Note and all their successors and assigns.

 

Collateral. The word “Collateral”
means all of Grantor's right, title and interest in and to all the Collateral as described in the Collateral Description section
of this Agreement.

 

Default. The word “Default”
means the Default set forth in this Agreement in the section titled “Default”.

 

Environmental Laws. The words “Environmental
Laws” mean any and all state, federal and local statutes, regulations and ordinances relating to the protection of human health
or the environment, including without limitation the Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
as amended, 42 U.S.C. Section 9601, et seq. (“CERCLA”), the Superfund Amendments and Reauthorization Act of 1986, Pub. L.
No. 99-499 (“SARA”), the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq., the Resource Conservation
and Recovery Act, 42 U.S.C. Section 6901, et seq., or other applicable state or federal laws, rules, or regulations adopted pursuant
thereto.

 

Event of Default. The words “Event
of Default” mean any of the events of default set forth in this Agreement in the default section of this Agreement.

 

 

 

    	 	9	 

     

    

 

 

Grantor. The word “Grantor”
means Dougherty's Holdings, Inc.; DOUGHERTY'S PHARMACY, INC.; Dougherty's Pharmacy El Paso, LLC; Dougherty's Pharmacy Humble, LLC;
Dougherty's Pharmacy McAlester, LLC; Dougherty's Pharmacy Forest Park Dallas. LLC: and Dougherty's Pharmacy Springtown, LLC.

 

Guarantor. The word “Guarantor”
means any guarantor, surety, or accommodation party of any or all of the Indebtedness.

 

Guaranty. The word “Guaranty” means the guaranty from Guarantor to Lender, including without limitation a guaranty of all or part of the Note.

 

Hazardous Substances. The words “Hazardous
Substances”·mean materials that, because of their quantity, concentration or physical, chemical or Infectious characteristics,
may cause or pose a present or potential hazard to human health or the environment when improperly used, treated, stored, disposed
of, generated, manufactured, transported or otherwise handled. The words “Hazardous Substances” are used in their very
broadest sense and include without limitation any and all hazardous or toxic substances, materials or waste as defined by or listed
under the Environmental Laws. The term “Hazardous Substances” also includes, without limitation, petroleum and petroleum
by-products or any fraction thereof and asbestos.

 

Indebtedness. The word “Indebtedness”
means the indebtedness evidenced by the Note or Related Documents, including all principal and interest together with all other
indebtedness and costs and expenses for which Grantors responsible under this Agreement or under any of the Related Documents.
Specifically, without limitation, Indebtedness Includes the future advances set forth in the Future Advances provision, together
with all interest thereon and all amounts that may be indirectly secured by the Cross-Collateralization provision of this Agreement.

 

Lender. The word “Lender”
means First National Bank of Omaha, its successors and assigns.

 

Note. The word “Note” means
any and all of Borrowers liabilities, obligations and debts to Lender, now existing or hereinafter incurred or created, including,
without limitation, all loans, advances, interest, costs debts, overdraft indebtedness, credit card indebtedness, lease obligations,
liabilities and obligations under interest rate protection agreements or foreign currency exchange agreements or commodity price
protection agreements, other obligations, and liabilities of Borrower together with all modifications, increases, renewals, and
extensions of the aforementioned. Additionally, hereby incorporated as if fully set forth herein are the terms and conditions of
any promissory note, agreement or other document executed by Borrower and/or Lender indicating this security instrument or the
property described herein shall be considered “Collateral” securing such promissory note, agreement, or other instrument,
or any similar reference.

 

Property. The word "Property''
means all of Grantors right, title and interest in and to all the Property as described in the "Collateral Description"
section of this Agreement.

 

Related Documents. The words "Related
Documents" mean all promissory notes credit agreements, loan agreements, environmental agreements, guaranties, security agreements,
mortgages, deeds of trust, security deeds, collateral mortgages, and all other instruments, agreements and documents, whether now
or hereinafter existing, executed in connection with the Indebtedness.

 

 

    	 	10	 

     

    

 

 

GRANTOR HAS READ AND UNDERSTOOD ALL THE PROVISIONS OF THIS COMMERCIAL
SECURITY AGREEMENT AND AGREES TO ITS TERMS.

 

THIS AGREEMENT IS DATED JULY 1, 2016.

 

GRANTOR:

 

 

 

 

    	 	11	 

     

    

LENDER:

 

 

/s/ Clifton B. Wisenhunt                            

First National Bank of Omaha

Texas Market President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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