Document:

Execution version

 

 

LOAN AND SECURITY AGREEMENT

 

AMONG

 

GERBER FINANCE INC.

 

as Lender

 

and

 

STAR REAL ESTATE HOLDINGS USA, INC.,
a Delaware corporation,

300 PARK STREET, LLC, a Delaware limited liability company,

947 WATERFORD ROAD, LLC, a Delaware limited liability company,

and 56 MECHANIC FALLS ROAD, LLC, a Delaware limited liability company,

as Borrowers

 

ATRM HOLDINGS, INC., a Minnesota corporation,

EDGEBUILDER, INC., a Delaware corporation,

GLENBROOK BUILDING SUPPLY, INC., a Delaware corporation, 

KBS BUILDERS, INC., a Delaware corporation,

and DIGIRAD CORPORATION, a Delaware corporation

as Corporate Credit Parties

 

Dated: January 31, 2020

 

    

    

    

 

Table of Contents

 

Page

  

	I.	DEFINITIONS 	1
	 	 	 
	 	1.1	General Definitions	1
	 	 	 	 
	 	1.2	Accounting Terms	15
	 	 	 	 
	 	1.3	Other Terms	15
	 	 	 	 
	 	1.4	Rules of Construction	15
	 	 	 	 
	II.	LOANS		15
	 	 	 	 
	 	2.1	Credit Advance	15
	 	 	 	 
	III.	REPAYMENT 	17
	 	 	 
	 	3.1	Repayment of the Credit Advance	17
	 	 	 	 
	IV.	[INTENTIONALLY OMITTED] 	17
	 	 	 
	V.	INTEREST AND FEES 	17
	 	 	 
	 	5.1	Interest and Fees	17
	 	 	 	 
	VI.	CONDITIONS PRECEDENT 	19
	 	 	 
	 	6.1	Conditions Precedent to Loans	19
	 	 	 	 
	VII.	REPRESENTATIONS, WARRANTIES AND COVENANTS 	20
	 	 	 
	 	7.1	Corporate Existence; Compliance with Law	20
	 	 	 	 
	 	7.2	Names; Organizational Information; Collateral Locations	20
	 	 	 	 
	 	7.3	Power; Authorization; Enforceable Obligations	20
	 	 	 	 
	 	7.4	Financial Statements and Projections; Books and Records	21
	 	 	 	 
	 	7.5	Material Adverse Change	21
	 	 	 	 
	 	7.6	Real Estate; Property	21
	 	 	 	 
	 	7.7	Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness	22
	 	 	 	 
	 	7.8	Government Regulation; Margin Regulations	22

 

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	 	7.9	Taxes; Charges	22
	 	 	 	 
	 	7.10	Payment of Obligations	23
	 	 	 	 
	 	7.11	ERISA	23
	 	 	 	 
	 	7.12	Litigation	23
	 	 	 	 
	 	7.13	Intellectual Property	23
	 	 	 	 
	 	7.14	Full Disclosure	24
	 	 	 	 
	 	7.15	Hazardous Materials	24
	 	 	 	 
	 	7.16	Insurance	24
	 	 	 	 
	 	7.17	Deposit and Disbursement Accounts	25
	 	 	 	 
	 	7.18	Accounts	25
	 	 	 	 
	 	7.19	Conduct of Business	25
	 	 	 	 
	 	7.20	Further Assurances	25
	 	 	 	 
	VIII.	FINANCIAL REPORTS; FINANCIAL COVENANTS 	26
	 	 	 
	 	8.1	Reports and Notices	26
	 	 	 	 
	 	8.2	Financial Covenants	27
	 	 	 	 
	 	8.3	Other Reports and Information	27
	 	 	 	 
	 	8.4	Good Standing Certificates	27
	 	 	 	 
	IX.	NEGATIVE COVENANTS 	27
	 	 	 
	X.	SECURITY INTEREST 	29
	 	 	 
	 	10.1	Grant of Security Interest	29
	 	 	 	 
	 	10.2	Lender’s Rights	31
	 	 	 	 
	 	10.3	Lender’s Appointment as Attorney-in-Fact	32
	 	 	 	 
	 	10.4	Grant of License to Use Intellectual Property Collateral	33

 

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	 	10.5	Terminations; Amendments Not Authorized	33
	 	 	 	 
	 	10.6	Inspections	33
	 	 	 	 
	 	10.7	Inapplicability	33
	 	 	 	 
	XI.	TERM 	33
	 	 	 	 
	 	11.1	Term of Agreement	33
	 	 	 	 
	 	11.2	[Intentionally Omitted]	34
	 	 	 	 
	 	11.3	Termination of Lien	34
	 	 	 	 
	XII.	EVENTS OF DEFAULT 	34
	 	 	 
	 	12.1	Events of Default	34
	 	 	 	 
	 	12.2	Lender Remedies	37
	 	 	 	 
	 	12.3	Waivers	38
	 	 	 	 
	 	12.4	Proceeds	38
	 	 	 	 
	XIII.	MISCELLANEOUS 	38
	 	 	 
	 	13.1	No Waiver; Cumulative Remedies	38
	 	 	 	 
	 	13.2	Amendments and Waivers	38
	 	 	 	 
	 	13.3	Expenses; Indemnity	39
	 	 	 	 
	 	13.4	Borrowing Agency Provisions	39
	 	 	 	 
	 	13.5	Guaranty	40
	 	 	 	 
	 	13.6	Waivers	41
	 	 	 	 
	 	13.7	Benefit of Guaranty	41
	 	 	 	 
	 	13.8	Subordination of Subrogation	41
	 	 	 	 
	 	13.9	Election of Remedies	41
	 	 	 	 
	 	13.10	Liability Cumulative	42

 

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	 	13.11	Waiver of Subrogation	42
	 	 	 	 
	 	13.12	Further Assurances	42
	 	 	 	 
	 	13.13	Successors and Assigns	42
	 	 	 	 
	 	13.14	Descriptive Headings	43
	 	 	 	 
	 	13.15	Rules of Construction	43
	 	 	 	 
	 	13.16	Notices	43
	 	 	 	 
	 	13.17	Severability	43
	 	 	 	 
	 	13.18	Entire Agreement; Counterparts	43
	 	 	 	 
	 	13.19	SUBMISSION TO JURISDICTION	44
	 	 	 	 
	 	13.20	WAIVER OF TRIAL BY JURY, CERTAIN DAMAGES AND SETOFFS	44
	 	 	 	 
	 	13.21	GOVERNING LAW	45
	 	 	 	 
	 	13.22	Reinstatement	45

 

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INDEX OF EXHIBITS AND SCHEDULES

 

	Schedule I	-	[Intentionally omitted]
	Schedule II	-	Conditions Precedent
	Schedule III	-	Financial Covenants
	Schedule IV	-	Cash Management
	Schedule V	-	Addresses for Notices
	 	 	 
	Attachment A	-	Fees, Charges and Commissions
	 	 	 
	Exhibit A	-	Form of Note
	Exhibit B	-	Form of Monthly Statement Report
	Exhibit C	-	[Intentionally Omitted]
	Exhibit D	-	Form of Certificate of Compliance
	Exhibit E	-	Form of Power of Attorney
	Exhibit F	-	Form of Accountant’s Letter
	Exhibit G	-	Form of Officer’s Certificate
	Exhibit H	-	Form of Account Debtor Notification Letter
	Exhibit I	-	Form of Intellectual Property Security Agreement

 

	Disclosure Schedule 7.2	-	Perfection Certificate
	Disclosure Schedule 7.6	-	Real Estate
	Disclosure Schedule 7.7	-	Ventures, Subsidiaries and Affiliates
	Disclosure Schedule 7.9	-	Taxes
	Disclosure Schedule 7.12	-	Litigation
	Disclosure Schedule 7.13	-	Intellectual Property
	Disclosure Schedule 7.15	-	Environmental Matters
	Disclosure Schedule 7.16	-	Insurance
	Disclosure Schedule 7.17	-	Deposit and Disbursement Accounts
	Disclosure Schedule 9(b)	-	Indebtedness
	Disclosure Schedule 9(e)	-	Permitted Liens

 

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LOAN AND SECURITY AGREEMENT

 

This Loan and Security
Agreement is made as of January 31, 2020 by and among GERBER FINANCE INC., a New York corporation (“Lender”)
STAR REAL ESTATE HOLDINGS USA, INC., a Delaware corporation, 300 PARK STREET, LLC, a Delaware limited liability company, 947 WATERFORD
ROAD, LLC, a Delaware limited liability company, and 56 MECHANIC FALLS ROAD, LLC, a Delaware limited liability company, (individually,
“Initial Borrower” and, collectively, if more than one, the “Initial Borrowers”), and together
with each other Person which, on or subsequent to the Closing Date, agrees in writing to become a “Borrower” hereunder,
herein called, individually, a “Borrower” and, collectively, the “Borrowers,” and pending
the inclusion by written agreement of any other such Person, besides each Initial Borrower, as a “Borrower” hereunder,
all references herein to “Borrowers,” “each Borrower,” the “applicable Borrower,” “such
Borrower” or any similar variations thereof (whether singular or plural) shall all mean and refer to the Initial Borrower
or each one of them collectively) and any other Credit Party executing or becoming a party to this Agreement, including but not
limited to ATRM HOLDINGS, INC., a Minnesota corporation, EDGEBUILDER, INC., a Delaware corporation, GLENBROOK BUILDING SUPPLY,
INC., a Delaware corporation, KBS BUILDERS, INC., a Delaware corporation, and DIGIRAD CORPORATION, a Delaware corporation, as “Corporate
Credit Parties”.

 

BACKGROUND

 

Borrowers have requested
that Lender make a loan and advances available to Borrowers; and

 

Lender has agreed to
make such loan and advances to Borrowers on the terms and conditions set forth in this Agreement and any amendment thereto.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and undertakings and terms and conditions contained herein, the parties
hereto agree as follows:

 

		I.	DEFINITIONS

 

1.1             
General Definitions. When used in this Agreement, the following terms shall have the following meanings:“Account
Control Agreement” has the meaning set forth in Schedule IV.

 

“Account Debtor”
means any Person who is or may become obligated with respect to, or on account of, an Account, Chattel Paper or General Intangibles
(including a Payment Intangible).

 

“Accounts”
means all “accounts”, as such term is defined in the UCC, now owned or hereafter acquired by any Person.

 

“Affiliate”
means with respect to any Person (i) each other Person that, directly or indirectly, owns or controls, whether beneficially, or
as a trustee, guardian or other fiduciary, ten percent (10%) or more of the Stock having ordinary voting power for the election
of directors of such Person; (ii) each other Person that controls, is controlled by or is under common control with such Person
or any Affiliate of such Person; or (iii) each of such Person’s officers, directors, joint venturers and partners. For
the purpose of this definition, “control” of a Person means the possession, directly or indirectly, of the power
to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract
or otherwise.

 

    

    

    

 

“Agreement”
means this Agreement including all appendices, exhibits or schedules attached or otherwise identified thereto, restatements and
modifications and supplements thereto, and any appendices, exhibits or schedules to any of the foregoing, each as in effect at
the time such reference becomes operative; provided, that except as specifically set forth in this Agreement, any reference to
the Disclosure Schedules to this Agreement shall be deemed a reference to the Disclosure Schedules as in effect on the Closing
Date or in a written amendment thereto executed by Borrowers and Lender.

 

“AIA”
means American Architectural Institute.

 

“Assignment
of Leases” means collectively, any Assignment of Leases which is executed in favor of Lender to secure the Obligations,
including but not limited to the Assignment of Leases on the Real Estate.

 

“Books and Records”
means all books, records, board minutes, contracts, licenses, insurance policies, environmental audits, business plans, files,
computer files, computer discs and other data and software storage and media devices, accounting books and records, financial statements
(actual and pro forma), filings with Governmental Authorities and any and all records and instruments relating to, or otherwise
necessary or helpful in the collection of or realization upon, the Collateral or any Borrower’s business.

 

“Borrower”
has the meaning set forth in the preamble to this Agreement.

 

“Borrowing Base”
means at any time with respect to any Borrower, an amount equal to the sum at such time of:

 

(a)       Real
Estate Availability; minus

 

(b)       the
Reserves.

 

“Borrowing Representative”
means David Noble.

 

“Business Day”
means a day on which Lender is open for business and that is not a Saturday, a Sunday or other day on which banks are required
or permitted to be closed in the State of New York.

 

“Capital Expenditures”
means all payments or accruals (including obligations under capital leases) for any fixed assets or improvements or for replacements,
substitutions or additions thereto, that have a useful life of more than one year and that are required to be capitalized under
GAAP.

 

    2

    

    

 

“Change of Control”
means, with respect to any Person on or after the Closing Date, any change in the composition of such Person’s Stockholders
as of the Closing Date shall occur which would result in any Stockholder or group acquiring 49.9% or more of any class of Stock
of such Person, or that any Person (or group of Persons acting in concert) shall otherwise acquire, directly or indirectly (including
through Affiliates), the power to elect a majority of the board of directors or managers of such Person or otherwise direct the
management or affairs of such Person by obtaining proxies, entering into voting agreements or trusts, acquiring securities or otherwise.

 

“Charges”
means all federal, state, county, city, municipal, local, foreign or other governmental taxes (including taxes owed to PBGC at
the time due and payable), levies, customs or other duties, assessments, charges, liens, and all additional charges, interest,
penalties, expenses, claims or encumbrances upon or relating to (i) the Collateral, (ii) the Obligations, (iii) the employees,
payroll, income or gross receipts of a Credit Party, (iv) the ownership or use of any assets by a Credit Party, or (v) any other
aspect of a Credit Party’s business.

 

“Chattel Paper”
means all “chattel paper,” as such term is defined in the UCC, now owned or hereafter acquired by any Person.

 

“Closing Date”
means the Business Day on which the conditions precedent set forth in Article VI have been satisfied or specifically waived in
writing by Lender, and the initial Loans has been made.

 

“Collateral”
has the meaning assigned to it in Section 10.1.

 

“Collateral
Account” means an account in Lender’s name under the dominion and control of Lender maintained at a financial institution
acceptable to Lender into which all cash, checks, notes, drafts and other similar items relating to or constituting Proceeds of
or payments made in respect of any Collateral shall be deposited.

 

“Contract Rate”
means an interest rate per annum equal to the sum of the Prime Rate plus three and one-half percent (3.5%).

 

“Contracts”
means all the contracts, undertakings, or agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) in
or under which any Person may now or hereafter have any right, title or interest, including any agreement relating to the terms
of payment or the terms of performance of any Account.

 

“Contractual
Obligation” means as to any Person, any provision of any security issued by such Person or of any agreement, instrument,
or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

“Corporate Credit
Party” means each Credit Party which is not a natural Person.

 

“Credit Advance”
shall have the meaning given to such term in Section 2.1(a).

 

“Credit Documents”
means this Agreement, each Pledge Agreement, the Note, each Guaranty, each Power of Attorney, each Mortgage, each Life Insurance
Assignment, each Subordination Agreement, each Intellectual Property Security Agreement and all other documents, instruments and
agreements now or hereafter executed and/or delivered in connection herewith or therewith.

 

    3

    

    

 

“Credit Parties”
means each Borrower and each other Person (other than Lender) that is or may become a party to this Agreement or any other Credit
Document.

 

“Default”
means any act or event which, with the giving of notice or passage of time or both, would unless cured or waived would become an
Event of Default.

 

“Default Rate”
means the sum of (a) the interest rate or fee in effect from time to time as respects each Loan and (b) five percent (5%).

 

“Deposit Accounts”
means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name of any Person.

 

“Disbursement
Accounts” has the meaning set forth in Schedule IV.

 

“Disclosure
Schedules” means the Disclosure Schedules prepared by Borrowers and denominated as Disclosure Schedules 7.2 through 9(e)
in the Index of Exhibits and Schedules to this Agreement.

 

“Documents”
means all “documents,” as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever
located, including all bills of lading, dock warrants, dock receipts, warehouse receipts, and other documents of title, whether
negotiable or non-negotiable.

 

“EBGL Credit
Facility” means the revolving credit facility to be conditionally granted by Lender to EdgeBuilder, Inc. and Glenbrook
Building Supply, Inc., in a certain Loan and Security Agreement executed not later than January 31, 2020 by the Credit Parties
hereto, as it may be subsequently amended.

 

“Environmental
Laws” means all federal, state and local laws, statutes, ordinances and regulations, now or hereafter in effect, and
in each case as amended or supplemented from time to time, and any applicable judicial or administrative interpretation thereof
relating to the regulation and protection of human health, safety, the environment and natural resources (including ambient air,
surface water, groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic species and vegetation).

 

“Environmental
Liabilities” means all liabilities, obligations, responsibilities, remedial actions, removal costs, losses, damages of
whatever nature, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants
and costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim,
suit, action or demand of whatever nature by any Person, and which relate to any health or safety condition regulated under any
Environmental Law, environmental permits or in connection with any Release, threatened Release, or the presence of a Hazardous
Material.

 

    4

    

    

  

“Equipment”
means all “equipment” as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever located.

 

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

 

“ERISA Event”
shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with
respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan
of an “accumulated funding deficiency” (as defined in Section 412 of the IRC or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(b) of the IRC or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by any Credit Party of any liability under Title IV of ERISA with
respect to the termination of any Plan; (e) the receipt by any Credit Party from the PBGC or a plan administrator of any notice
relating to an intention to terminate any Plan or to appoint a trustee to administer any Plan; (f) the incurrence by any Credit
Party of any liability with respect to any withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt
by any Credit Party of any notice, or the receipt by any Multiemployer Plan from any Credit Party of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

 

“Event of Default”
has the meaning set forth in Section 12.1.

 

“Financial Statements”
means income statement, balance sheet, and statement of cash flows of each Borrower, internally prepared for each Fiscal Month,
and audited financial statements of Digirad Corporation for each Fiscal Year, prepared in accordance with GAAP.

 

“Fiscal Month”
means any of the monthly accounting periods of each Credit Party.

 

“Fiscal Year”
means the 12 month period of each Credit Party ending December 31 of each year. Subsequent changes of the fiscal year of each Credit
Party shall not change the term “Fiscal Year” unless Lender shall consent in writing to such change.

 

“Fixtures”
means all “fixtures” as such term is defined in the UCC, now owned or hereafter acquired by any Person.

 

“GAAP”
means generally accepted accounting principles, practices and procedures in effect from time to time in the United States of America.

 

“General Intangibles”
means all “general intangibles” as such term is defined in the UCC, now owned or hereafter acquired by any Person including
all right, title and interest which such Person may now or hereafter have in or under any Contract, all Payment Intangibles, customer
lists, Licenses, Intellectual Property, interests in partnerships, joint ventures and other business associations, permits, proprietary
or confidential information, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge,
know-how, Software, data bases, data, skill, expertise, experience, processes, models, drawings, materials, Books and Records,
Goodwill (including the Goodwill associated with any Intellectual Property), all rights and claims in or under insurance policies
(including insurance for fire, damage, loss, and casualty, whether covering personal property, real property, tangible rights or
intangible rights, all liability, life, key-person, and business interruption insurance, and all unearned premiums), uncertificated
securities, choses in action, deposit accounts, rights to receive tax refunds and other payments, rights to receive dividends,
distributions, cash Instruments and other property in respect of or in exchange for pledged Stock and Investment Property, and
rights of indemnification.

 

    5

    

    

 

“Goods”
means all “goods”, as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever located,
including embedded software to the extent included in “goods” as defined in the UCC.

 

“Goodwill”
means all goodwill, trade secrets, proprietary or confidential information, technical information, procedures, formulae, quality
control standards, designs, operating and training manuals, customer lists, and distribution agreements now owned or hereafter
acquired by any Person.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, and any agency, department
or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Guaranteed
Indebtedness” means, as to any Person, any obligation of such Person guaranteeing any indebtedness, lease, dividend,
or other obligation (“primary obligations”) of any other Person (the “primary obligor”) in any manner,
including any obligation or arrangement of such guaranteeing Person (whether or not contingent): (i) to purchase or repurchase
any such primary obligation; (ii) to advance or supply funds (a) for the purchase or payment of any such primary obligation
or (b) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency
or any balance sheet condition of the primary obligor; (iii) to purchase property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary
obligation; or (iv) to indemnify the owner of such primary obligation against loss in respect thereof.

 

“Guarantor”
means each Person (in addition to a Corporate Credit Party as provided herein) which executes a guaranty or a support, put or other
similar agreement in favor of Lender in connection with the transactions contemplated by this Agreement, including but not limited
to Jeffrey E. Eberwein.

 

“Guaranty”
means any agreement to perform all or any portion of the Obligations on behalf of any Borrower, in favor of, and in form and substance
satisfactory to, Lender, together with all amendments, modifications and supplements thereto, and shall refer to such Guaranty
as the same may be in effect at the time such reference becomes operative including but not limited to those provisions of Sections
13.5, 13.6, 13.7, 13.8, 13.9, 13.10, and 13.11 hereof.

 

    6

    

    

 

“Hazardous Material”
means any substance, material or waste which is regulated by or forms the basis of liability now or hereafter under, any Environmental
Laws, including any material or substance which is (a) defined as a “solid waste,” “hazardous waste,” “hazardous
material,” “hazardous substance,” “extremely hazardous waste,” “restricted hazardous waste,”
“pollutant,” “contaminant,” “hazardous constituent,” “special waste,” “toxic
substance” or other similar term or phrase under any Environmental Laws, (b) petroleum or any fraction or by-product thereof,
asbestos, polychlorinated biphenyls (PCB’s), or any radioactive substance.

 

“Hazardous Waste”
has the meaning ascribed to such term in the Resource Conservation and Recovery Act (42 U.S.C. §§ 6901 et.
seq.).

 

“Indebtedness”
of any Person means: (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property
or services (including reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers’
acceptances, whether or not matured, but not including obligations to trade creditors incurred in the ordinary course of business
and not more than 60 days past due); (ii) all obligations evidenced by notes, bonds, debentures or similar instruments; (iii) all
indebtedness created or arising under any conditional sale or other title retention agreements with respect to property acquired
by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited
to repossession or sale of such property); (iv) all obligations under capital leases; (v) all Guaranteed Indebtedness;
(vi) all Indebtedness referred to in clauses (i), (ii), (iii), (iv) or (v) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property (including accounts
and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness;
(vii) the Obligations; and (viii) all liabilities under Title III of ERISA.

 

“Indemnified
Person” has the meaning given to such term in Section 13.3(b).

 

“Initial Borrowers”
has the meaning set forth in the preamble to this Agreement.

 

“Instruments”
means all “instruments”, as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever
located, including all certificated securities and all notes and other evidences of indebtedness, other than instruments that constitute,
or are a part of a group of writings that constitute, Chattel Paper.

 

“Intellectual
Property” means any and all Licenses, patents, patent registrations, copyrights, copyright registrations, trademarks,
trademark registrations, trade secrets, domain names, website addresses and customer lists.

 

“Intellectual
Property Security Agreement” means the Intellectual Property Security Agreement in the form of Exhibit I made
in favor of Lender by each applicable Credit Party.

 

“Intercreditor
Agreement” means any intercreditor and subordination agreement accepted by Lender from time to time.

 

    7

    

    

 

“Inventory”
means all “inventory”, as such term is defined in the UCC, now or hereafter owned or acquired by any Person, wherever
located.

 

“Investment
Property” means all “investment property”, as such term is defined in the UCC, now owned or hereafter acquired
by any Person, wherever located.

 

“IRC”
and “IRS” means respectively, the Internal Revenue Code of 1986 and the Internal Revenue Service, and any successors
thereto.

 

“Lender”
has the meaning set forth in the preamble to this Agreement and if Lender shall decide to assign or syndicate any of the Obligations
such term shall include such assignee or such other members of the syndicate.

 

“Letter-of-Credit
Rights” has the meaning given to “letter-of-credit rights” as such term is defined in the UCC, now owned
or hereafter acquired by any Person, including rights to payment or performance under a letter of credit, whether or not such Person,
as beneficiary, has demanded or is at the time entitled to demand payment or performance.

 

“License”
means any rights under any written agreement now or hereafter acquired by any Person to use any trademark, trademark registration,
copyright, copyright registration or invention for which a patent is in existence or other license of rights or interests now held
or hereafter acquired by any Person.

 

“Lien”
means any mortgage, security deed or deed of trust, pledge, hypothecation, assignment, deposit arrangement, lien, security interest,
charge, claim or encumbrance, or preference, priority or other security agreement or preferential arrangement of any kind or nature
whatsoever including any lease or other title retention agreement, any financing lease having substantially the same economic effect
as any of the foregoing, and the filing of, or agreement to give, any financing statement under the UCC or comparable law of any
jurisdiction.

 

“Life Insurance
Assignment” means an Assignment of Life Insurance Policy as Collateral to be executed by the owner and the beneficiary
thereof, in form and substance satisfactory to Lender, granting Lender a Lien on the Life Insurance Policy to secure payment of
the Obligations, as may be requested by Lender from time to time.

 

“Life Insurance
Policy” means, the life insurance policy[ies] maintained by Initial Borrower upon the life of Matthew Mosher with the
death benefit[s] thereunder of at least $2,000,000.

 

“Litigation”
means any claim, lawsuit, litigation, investigation or proceeding of or before any arbitrator or Governmental Authority.

 

“Loans”
means the Credit Advance and all extensions of credit hereunder or under any Credit Document.

 

“LSVM Purchase
Agreement” means the Membership Interest Purchase Agreement, dated as of April 1, 2019, by and among ATRM Holdings, Inc.,
Lone Star Value Management, LLC and Jeffrey E. Eberwein.

 

    8

    

    

 

“Margin
Stock” has the meaning set forth in Section 7.8.

 

“Material Adverse
Effect” means a material adverse effect on (a) the condition, operations, assets or business of any Credit Party, (b)
any Credit Party’s ability to pay or perform the Obligations in accordance with the terms hereof or any Credit Document,
(c) the value of the Collateral, the Liens on the Collateral or the priority of any such Lien or (d) the practical realization
of the benefits of Lender’s rights and remedies under this Agreement and the Credit Documents.

 

“Maturity Date”
means the earlier of (a) January 31, 2025 or (b) the termination, maturity or repayment of the EBGL Credit Facility or (c) January
31, 2020 if the EBGL Credit Facility and the Credit Documents relating thereto have not by such date been executed and delivered
by the Credit Parties to Lender in form and substance satisfactory to Lender.

 

“Maximum Legal
Rate” shall have the meaning given to such term in Section 5.1(a)(iv).

 

“Maximum Credit
Amount” means $2,500,000.

 

“Minimum Actionable
Amount” means $10,000.

 

“Minimum Average
Monthly Loan Amount” means 50% of the Maximum Credit Amount.

 

“Mortgage”
means collectively, any mortgage or deed of trust and assignment of leases which is executed in favor of Lender to secure the Obligations,
including but not limited to the Mortgage and Assignment of Leases on the Real Estate.

 

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

 

“Note”
means the promissory notes of Borrowers executed in favor of Lender substantially in the form of Exhibit A.

 

“Obligations”
means all obligations under any Guaranty and all Loans, all advances, debts, liabilities, obligations, covenants and duties owing
by any Credit Party to Lender (or any corporation that directly or indirectly controls or is controlled by or is under common control
with Lender) of every kind and description (whether or not evidenced by any note or other instrument and whether or not for the
payment of money or the performance or non-performance of any act), direct or indirect, absolute or contingent, due or to become
due, contractual or tortious, liquidated or unliquidated, whether existing by operation of law or otherwise now existing or hereafter
arising including any debt, liability or obligation owing from any Credit Party to others which Lender may have obtained by assignment
or otherwise and further including all interest (including interest accruing at the then applicable rate provided in this Agreement
after the maturity of the Loans and interest accruing at the then applicable rate provided in this Agreement after the filing of
any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding), charges or any other payments any Credit Party is required
to make by law or otherwise arising under or as a result of this Agreement or any other Credit Document, together with all reasonable
expenses and reasonable attorneys’ fees chargeable to any Borrower’s account or incurred by Lender in connection with
any Borrower’s account whether provided for herein or in any Credit Agreement. The term includes the definition of “Obligations”
as defined in any Credit Documents which evidence the EBGL Credit Facility. The term also includes the definition of “Obligations”
as defined in the Loan and Security Agreement dated February 23, 2016, as amended, executed by some of the Credit Parties herein
and Lender.

 

    9

    

    

 

“Pass Thru Distributions”
mean dividends declared and paid by a Credit Party to its Stockholders, or which could have been declared and paid by a Credit
Party, in an amount not to exceed the Pass Thru Tax Liabilities.

 

“Pass Thru Tax
Liabilities” means the amount of state and federal income tax paid or to be paid by a Credit Party’s Stockholders
on taxable income earned by such Credit Party and attributable to the Stockholder as a result of such Credit Party’s status
as a disregarded entity for tax purposes, assuming the highest marginal income tax rate for federal and state (for the state or
states in which any Stockholder is liable for income taxes with respect to such income) income tax purposes, after taking into
account any deduction for state income taxes in calculating the federal income tax liability and all other deductions, credits,
deferrals and other reductions available to Stockholders from or through a Credit Party.

 

“Payment Intangible”
has the meaning give to the term “payment intangible” in the UCC and in any event shall include, a General Intangible
under which the Account Debtor’s principal obligation is a monetary obligation.

 

“Payment Office”
means 8 West 40th Street, 14th Floor, New York, New York 10018 or such other place as Lender may from time
to time designate in writing.

 

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

 

“Permitted Liens”
means the following Liens: (i) Liens for taxes or assessments or other governmental Charges or levies, either not yet due and payable
or to the extent that nonpayment thereof is permitted by the terms of Section 7.10; (ii) pledges or deposits securing
obligations under worker’s compensation, unemployment insurance, social security or public liability laws or similar legislation;
(iii) pledges or deposits securing bids, tenders, contracts (other than contracts for the payment of money) or leases to which
any Credit Party is a party as lessee made in the ordinary course of business; (iv) deposits securing public or statutory
obligations of any Credit Party; (v) inchoate and unperfected workers’, mechanics’, or similar liens arising in
the ordinary course of business so long as such Liens attach only to Equipment, fixtures or real estate; (vi) carriers’,
warehousemen’s, suppliers’ or other similar possessory liens arising in the ordinary course of business and securing
indebtedness not yet due and payable in an outstanding aggregate amount not in excess of the Minimum Actionable Amount at any time
so long as such Liens attach only to Inventory; (vii) deposits of money securing, or in lieu of, surety, appeal or customs
bonds in proceedings to which any Credit Party is a party; (viii)  zoning restrictions, easements, licenses, or other restrictions
on the use of real property or other minor irregularities in title (including leasehold title) thereto, so long as the same do
not materially impair the use, value, or marketability of such real estate; (ix) Purchase Money Liens securing Purchase Money
Indebtedness (or rent) to the extent permitted under Article IX(b); (x) Liens in existence on the Closing Date as disclosed
on Disclosure Schedule 9(e) provided that no such Lien is spread to cover additional property after the Closing Date and
the amount of Indebtedness secured thereby is not increased; and (xi) Liens in favor of Lender securing the Obligations.

 

    10

    

    

 

“Person”
means any individual, sole proprietorship, partnership, limited liability partnership, joint venture, trust, unincorporated organization,
association, corporation, limited liability company, institution, public benefit corporation, entity or government (whether federal,
state, county, city, municipal or otherwise, including any instrumentality, division, agency, body or department thereof), and
shall include such Person’s successors and assigns.

 

“Plan”
means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title III of ERISA or Section
412 of the IRC or Section 302 of ERISA, and in respect of which a Credit Party is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pledge Agreement”
means each pledge agreement in favor of Lender by any Credit Party.

 

“Prime Rate”
means the “prime rate” which from time to time published in the “Money Rates” column of The Wall Street
Journal (Eastern Edition, New York Metro); provided, however, if the Money Rates column of The Wall Street Journal (Eastern
Edition, New York Metro) ceases to be published or otherwise does not designate a “prime rate” as of a Business Day,
Lender has the right to obtain such information from a similar business publication of its selection. The Prime Rate shall be increased
or decreased as the case may be for each increase or decrease in the Prime Rate in an amount equal to such increase or decrease
in the Prime Rate; each change to be effective as of the day of the change in such rate.

 

“Proceeds”
means “proceeds”, as such term is defined in the UCC and, in any event, shall include: (a) any and all proceeds of
any insurance, indemnity, warranty or guaranty payable to any Credit Party or any other Person from time to time with respect to
any Collateral; (b) any and all payments (in any form whatsoever) made or due and payable to a Credit Party from time to time in
connection with any requisition, confiscation, condemnation, seizure or forfeiture of any Collateral by any governmental body,
governmental authority, bureau or agency (or any person acting under color of governmental authority); (c) any claim of a Credit
Party against third parties (i) for past, present or future infringement of any Intellectual Property or (ii) for past, present
or future infringement or dilution of any trademark or trademark license or for injury to the goodwill associated with any trademark,
trademark registration or trademark licensed under any trademark License; (d) any recoveries by a Credit Party against third parties
with respect to any litigation or dispute concerning any Collateral, including claims arising out of the loss or nonconformity
of, interference with the use of, defects in, or infringement of rights in, or damage to, Collateral; (e) all amounts collected
on, or distributed on account of, other Collateral, including dividends, interest, distributions and Instruments with respect to
Investment Property and pledged Stock; (f) all amounts related to equity investment or temporary indebtedness and (g) any and all
other amounts , rights to payment or other property acquired upon the sale, lease, license, exchange or other disposition of Collateral
and all rights arising out of Collateral.

 

    11

    

    

 

“Projections”
means as of any date the balance sheet, statements of income and cash flow for Credit Parties and Subsidiaries (including forecasted
Capital Expenditures) (a) by month for the next Fiscal Year, and (b) by year for the following three Fiscal Years, in each case
prepared in a manner consistent with GAAP and accompanied by senior management’s discussion and analysis of such plan.

 

“Purchase Money
Indebtedness” means (a) any Indebtedness incurred for the payment of all or any part of the purchase price of any fixed
asset, (b) any Indebtedness incurred for the sole purpose of financing or refinancing all or any part of the purchase price of
any fixed asset, and (c) any renewals, extensions or refinancings thereof (but not any increases in the principal amounts thereof
outstanding at that time).

 

“Purchase Money
Lien” means any Lien upon any fixed assets which secures the Purchase Money Indebtedness related thereto but only if
such Lien shall at all times be confined solely to the asset the purchase price of which was financed or refinanced through the
incurrence of the Purchase Money Indebtedness secured by such Lien and only if such Lien secures only such Purchase Money Indebtedness.

 

“Real Estate”
means the real property and the improvements thereon located at (A) 300 Park Street, South Paris, Maine 04281, (b) 947 Waterford
Road, Waterford, Maine 04088 and (c) 56 Mechanic Falls Road, Oxford, Maine 04270.

 

“Real Estate
Availability” means the lesser of (a) $2,500,000, or (b) sixty-five percent (65%) of the fair market value of the Real
Estate based upon an appraisal reasonably acceptable to Lender on the Closing Date.

 

“Real Property”
has the meaning assigned to it in Section 7.6.

 

“Release”
means, as to any Person, any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, dumping,
leaching or migration of Hazardous Materials in the indoor or outdoor environment by such Person, including the movement of Hazardous
Materials through or in the air, soil, surface water, ground water or property.

 

“Requirement
of Law” means as to any Person, the Certificate or Articles of Incorporation and By-Laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Reserves”
means reserves established by Lender from time to time in its good faith credit judgment, including to protect Lender’s interest
in the Collateral, to protect against the diminution in value of any Collateral, to protect Lender against the possible non-payment
of any Obligations, to protect Lender for any unpaid taxes, and to protect Lender in respect of any state of facts that could constitute
a Default or Event of Default.

 

    12

    

    

 

“Restricted
Payment” means: (i) the declaration or payment of any dividend or the incurrence of any liability to make any other payment
or distribution of cash or other property or assets on or in respect of Credit Party’s Stock; (ii) any payment or distribution
made in respect of any Subordinated Debt of any Credit Party in violation of any Subordination Agreement or other agreement made
in favor of Lender; (iii) any payment on account of the purchase, redemption, defeasance or other retirement of any Credit Party’s
Stock or Indebtedness or any other payment or distribution made in respect of any thereof, either directly or indirectly, other
than payment of Indebtedness to trade creditors incurred in the ordinary course of business consistent with past practice; or (iv)
any payment, loan, contribution, or other transfer of funds or other property to any Stockholder of such Person which is not expressly
and specifically permitted in this Agreement or in a Credit Document; provided, that no payment to Lender shall constitute a Restricted
Payment and no payments to Jeffrey E. Eberwein pursuant to the LSVM Purchase Agreement shall constitute a Restricted Payment following
compliance with the subordination provisions in Paragraph 3 of the Tenth Agreement of Amendment to Loan and Security Agreement
dated April 1, 2019 by and among KBS Builders, Inc., ATRM Holdings, Inc., and Lender provided that such payments to Jeffrey E.
Eberwein are made by Digirad Corporation.

 

“Software”
means all “software” as such term is defined in the UCC, including all computer programs and all supporting information
provided in connection with a transaction related to any program.

 

“Stock”
means all certificated and uncertificated shares, options, warrants, membership interests, general or limited partnership interests,
participation or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company
or equivalent entity whether voting or nonvoting, including common stock, preferred stock, or any other “equity security”
(as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934).

 

“Stockholder”
means each holder of Stock of Borrower.

 

“Subordinated
Debt” means any note, document, instrument or agreement now or any time hereafter executed and/or delivered by any Credit
Party with or in favor of any Subordinated Lender which evidences the principal, interest and other amounts owed by a Credit Party
to such Subordinated Lender.

 

“Subordinated
Lender” means collectively, any Person who enters into a Subordination Agreement with Lender with respect to amounts
owed by any Credit Party to such Subordinated Lender, including but not limited to Lone Star Value Co-Invest I, LP, Lone Star Value
Management, Inc., Star Procurement, Inc., Digirad Corporation, ATRM Holdings, Inc., and Premier Bank.

 

    13

    

    

 

“Subordination
Agreement” means collectively, all intercreditor and subordination agreements accepted by Lender from time to time with
respect to Indebtedness of any Credit Party, including but not limited to those from a Subordinated Lender.

 

“Subsidiary”
means, with respect to any Person, (i) any corporation of which an aggregate of more than 50% of the outstanding Stock having ordinary
voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, Stock of
any other class or classes of such corporation has or might have voting power by reason of the happening of any contingency) is
at the time, directly or indirectly, owned legally or beneficially by such Person and/or one or more Subsidiaries of such Person,
or with respect to which any such Person has the right to vote or designate the vote of 50% or more of such Stock whether by proxy,
agreement, operation of law or otherwise, and (ii) any partnership or limited liability company in which such Person or one
or more Subsidiaries of such Person has an equity interest (whether in the form of voting or participation in profits or capital
contribution) of more than 50% or of which any such Person is a general partner or manager or may exercise the powers of a general
partner or manager.

 

“Supporting
Obligations” means all “supporting obligations” as such term is defined in the UCC, including Letter-of-Credit
Rights or secondary obligations that supports the payment or performance of Accounts, Chattel Paper, Documents, General Intangibles,
Instruments, or Investment Property.

 

“Tangible Net
Worth” shall mean, with respect to any Person, at any date, the total assets (excluding any assets attributable to any
issuances by such Person of any Stock after the Closing Date and excluding any intangible assets and loans made to any officer,
director, shareholder or employee of such Person) minus the total liabilities (excluding Subordinated Debt), in each case, of such
Person at such date determined in accordance with GAAP.

 

“Term”
means the Closing Date through the Maturity Date subject to acceleration upon the occurrence of an Event of Default hereunder or
other termination hereunder.

 

“Termination
Date” means the date on which all Obligations under this Agreement are indefeasibly paid in full, in cash, and no Borrower
shall have any further right to borrow any moneys or obtain other Loans or financial accommodations under this Agreement.

 

“UCC”
means the Uniform Commercial Code as the same may, from time be in effect in the State of New York; provided, that in the event
that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect
to, Lender’s Lien on any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than
the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions of this Agreement relating to such attachment, perfection, priority or remedies and for purposes
of definitions related to such provisions; provided further, that to the extent that UCC is used to define any term herein or in
any Credit Document and such term is defined differently in different Articles or Divisions of the UCC, the definition of such
term contained in Article or Division 9 shall govern.

 

    14

    

    

 

“Withdrawal
Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title III of ERISA.

 

1.2             
Accounting Terms. Any accounting terms used in this Agreement which are not specifically defined shall have the meanings
customarily given them in accordance with GAAP and all financial computations shall be computed, unless specifically provided herein,
in accordance with GAAP consistently applied.

 

1.3             
Other Terms. All other terms used in this Agreement and defined in the UCC, shall have the meaning given therein
unless otherwise defined herein.

 

1.4             
Rules of Construction. All Schedules, Addenda and Exhibits hereto or expressly identified to this Agreement are incorporated
herein by reference and taken together with this Agreement constitute but a single agreement. The words “herein”, hereof”
and “hereunder” or other words of similar import refer to this Agreement as a whole, including the Exhibits and Schedules
thereto, as the same may be from time to time amended, modified, restated or supplemented, and not to any particular section, subsection
or clause contained in this Agreement. Wherever from the context it appears appropriate, each term stated in either the singular
or plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall include
the masculine, the feminine and the neuter. The term “or” is not exclusive. The term “including” (or any
form thereof) shall not be limiting or exclusive. All references to statutes and related regulations shall include any amendments
of same and any successor statutes and regulations. All references in this Agreement or in the Schedules to this Agreement to sections,
schedules, disclosure schedules, exhibits, and attachments shall refer to the corresponding sections, schedules, disclosure schedules,
exhibits, and attachments of or to this Agreement. All references to any instruments or agreements, including references to any
of this Agreement or any of the other Credit Documents shall include any and all modifications or amendments thereto and any and
all extensions or renewals thereof.

 

		II.	LOANS

 

2.1             
Credit Advance.

 

(a)              
Subject to the terms and conditions set forth herein on the Closing Date, Lender shall make a single credit advance (the
“Credit Advance”) to the Borrowers which will not exceed the Borrowing Base and (i) $2,000,000 thereof shall
be used for working capital of KBS Builders, Inc. (the “KBS Advance”) and (ii) $500,000 thereof shall be used for working
capital of EdgeBuilder, Inc. and Glenbrook Building Supply, Inc. (the “EBGL Advance”). The Credit Advance will be deposited
into the account of Star Real Estate Holdings USA, Inc. maintained at Lender for ongoing use of the Borrowers as herein provided.

 

(b)              
Notwithstanding the limitations set forth above, as herein provided. Lender retains the right to lend Borrowers from time
to time such amounts in excess of such limitations as Lender may determine in its sole discretion and to treat it as a Credit Advance.

 

(c)              
Each Borrower acknowledges that the exercise of Lender’s discretionary rights hereunder may result during the term
of this Agreement in one or more increases or decreases in the advance percentage used in determining Real Estate Availability
and each Borrower hereby consents to any such increases or decreases which may limit or restrict advances requested by Borrower.

 

    15

    

    

 

(d)              
If any Borrower does not pay any interest, fees, costs or charges to Lender when due, Borrowers shall thereby be deemed
to have requested, and Lender is hereby authorized at its discretion to make and charge to any Borrower’s account, a Credit
Advance as of such date in an amount equal to such unpaid interest, fees, costs or charges.

 

(e)              
If any Credit Party at any time fails to perform or observe any of the covenants contained in this Agreement or any other
Credit Document, Lender may, but need not, perform or observe such covenant on behalf and in the name, place and stead of such
Credit Party (or, at Lender’s option, in Lender’s name) and may, but need not, take any and all other actions which
Lender may deem necessary to cure or correct such failure (including the payment of taxes, the satisfaction of Liens, the performance
of obligations owed to Account Debtors, lessors or other obligors, the procurement and maintenance of insurance, the execution
of assignments, security agreements and financing statements, and the endorsement of instruments). The amount of all monies expended
and all costs and expenses (including attorneys’ fees and legal expenses) incurred by Lender in connection with or as a result
of the performance or observance of such agreements or the taking of such action by Lender shall be charged to any Borrower’s
account as a Credit Advance and added to the Obligations. To facilitate Lender’s performance or observance of such covenants
of Credit Parties, each Credit Party hereby irrevocably appoints Lender, or Lender’s delegate, acting alone, as such Credit
Party’s attorney in fact (which appointment is coupled with an interest) with the right (but not the duty) from time to time
to create, prepare, complete, execute, deliver, endorse or file in the name and on behalf of such Credit Party any and all instruments,
documents, assignments, security agreements, financing statements, applications for insurance and other agreements and writings
required to be obtained, executed delivered or endorsed by such Credit Party.

 

(f)               
Lender is authorized by Borrowers to record on its books or records the date, principal amount, amount and date of all payments
of principal of and interest on each Loan, and the outstanding principal balance of the Loans and such recordation shall constitute
prima facie evidence as to all such information contained therein. Lender shall provide Borrowing Representative on a monthly basis
with a statement and accounting of such recordations but any failure on the part of Lender to keep such recordation (or any errors
therein) or to send a statement thereof to Borrowing Representative shall not limit or otherwise affect the obligation of any Borrower
to repay (with applicable interest) any Loans. Except to the extent that Borrowing Representative shall, within thirty (30) days
after such statement and accounting is sent, notify Lender in writing of any objection any Borrower may have thereto (stating with
particularity the basis for such objection), such statement and accounting shall be deemed final, binding and conclusive upon Borrowers,
absent manifest error. The Loans made by Lender will be evidenced by a Note. Each Borrower will execute the Note simultaneously
with the execution of this Agreement.

 

    16

    

    

 

		III.	REPAYMENT

 

3.1             
Repayment of the Credit Advance.

 

The principal of the
KBS Advance shall be repaid in sixty (60) consecutive equal monthly installments together with interest on the first (1st)
day in each calendar month, commencing February 1, 2020, and in a final installment on January 31, 2025, when the unpaid balance
of principal and any accrued interest is due and payable. The principal of the EBGL Advance shall be repaid in twelve (12) consecutive
equal monthly installments together with interest on the first (1st) day in each calendar month, commencing February
1, 2020 and in a final installment on January 1, 2021 when the unpaid balance of principal and any accrued interest is due and
payable. Notwithstanding the foregoing, the Credit Advance matures and is due and payable, in full, upon a Default or upon the
Maturity Date. Borrowers shall be required to make a mandatory repayment hereunder at any time that the aggregate outstanding principal
balance of the Credit Advance made by Lender to Borrowers hereunder is in excess of the Borrowing Base, in an amount equal to such
excess. Any payments of principal, interest, fees or any other amounts payable hereunder or under any Credit Document shall be
made prior to 12:00 noon (New York time) on the due date thereof in immediately available funds. Upon the expiration of the Term,
all unpaid principal, interest, fees and other charges owed Lender under this Agreement or any other Credit Document becomes immediately
due and payable. Borrowers may prepay the Credit Advance and any other amounts payable hereunder, including those provided in Section
11.1, on one (1) Business Day’s prior notice to Lender provided that simultaneously the Credit Parties to the EBGL Credit
Facility pay to Lender the EBGL Credit Facility in full and all fees, expenses payable in connection therewith.

 

		IV.	[INTENTIONALLY OMITTED]

 

		V.	INTEREST AND FEES

 

5.1             
Interest and Fees.

 

(a)              
Interest.

 

(i)                
Except as modified by Section 5.1(a)(iii) below, Borrowers shall pay interest on the unpaid principal balance of the Loans
for each day they are outstanding at the Contract Rate.

 

(ii)             
Interest and fees shall be computed on the basis of actual days elapsed in a year of 360 days. Interest shall be payable
in arrears on the last day of each month and upon termination of this Agreement, or, at Lender’s option, Lender may charge
Borrowers’ account for said interest.

 

(iii)           
Effective upon the occurrence of any Event of Default and for so long as any Event of Default shall be continuing, the Contract
Rate shall automatically be increased to the Default Rate, and all outstanding Obligations, including unpaid interest, shall continue
to accrue interest from the date of such Event of Default at the Default Rate applicable to such Obligations.

 

    17

    

    

 

(iv)            
Notwithstanding the foregoing, in no event shall the aggregate interest exceed the maximum rate permitted under any applicable
law or regulation, as in effect from time to time (the “Maximum Legal Rate”) and if any provision of this Agreement
or Credit Document is in contravention of any such law or regulation, interest payable under this Agreement and each Credit Document
shall be computed on the basis of the Maximum Legal Rate (so that such interest will not exceed the Maximum Legal Rate) and once
the amount of interest payable hereunder or under the Credit Documents is less than the Maximum Legal Rate, Lender shall not reduce
interest payable hereunder or any Credit Document below the amount computed based upon the Maximum Legal Rate until the aggregate
amount of interest paid equals the amount of interest which would have been payable if the Maximum Legal Rate had not been imposed.

 

(v)              
Borrowers shall pay principal, interest and all other amounts payable hereunder, or under any Credit Document, without any
deduction whatsoever, including any deduction for any set-off or counterclaim.

 

(b)              
Fees.

 

(i)                
Minimum Loan Fee. In the event the average closing daily unpaid balances of all Loans hereunder during any calendar
month is less than the Minimum Average Monthly Loan Amount, Borrowers shall pay to Lender a minimum loan fee at a rate per annum
equal to the Contract Rate on the amount by which the Minimum Average Monthly Loan Amount exceeds such average closing daily unpaid
balances. Such fee shall be charged to Borrower’s account on the first day of each month with respect to the prior month.

 

(ii)             
Facility Fee. Borrowers hereby agree to pay Lender a facility fee in an amount equal to one and one-half percent
(1.5%) of the Maximum Credit Amount on the Closing Date and on each anniversary of the Closing Date which occurs prior to the Maturity
Date. The facility fee for the period ending on the Maturity Date shall be deemed fully earned on the Closing Date and shall be
payable by a charge to Borrower’s account upon the earlier of each anniversary of the Closing Date or the termination of
this Agreement for any reason.

 

(iii)           
Collateral Monitoring Fee. Borrowers shall pay Lender a monthly collateral monitoring fee in an amount equal to one
tenth of one percent (0.10%) of the Maximum Credit Amount per month, payable on the Closing Date and on the first day of each month
thereafter until the Maturity Date. The Collateral Monitoring Fee for each month ending prior to the Maturity Date shall be deemed
fully earned on the Closing Date and shall be payable by a charge to Borrower’s account upon the earlier of the first day
of each month during the Term or the termination of this Agreement for any reason.

 

(iv)            
Field Examination Fee. Upon Lender’s performance of any collateral monitoring and/or verification including
any field examination, collateral analysis or other business analysis, the need for which is to be determined by Lender and which
monitoring is undertaken by Lender or for Lender’s benefit, an amount equal to the established rate by Lender from time to
time which rate on the Closing Date is $1,250 per day for each person employed to perform such monitoring together with all costs,
disbursements and expenses incurred by Lender and the person performing such collateral monitoring and/or verification shall be
charged to Borrowers’ account.

 

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(v)              
[Intentionally Omitted].

 

(vi)            
Overline/Overadvance Fees. Under circumstances where any Borrower requests Credit Advance which would exceed the
Maximum Credit Amount and/or the Borrowing Base, Lender may impose fees in connection therewith. Such fees shall include (i) a
monthly fee in the amount of two and one-half percent (2.50%) of the greater of (A) the highest amount by which the amount Credit
Advance during such month exceeds the Borrowing Base and (B) if any, the amount approved by Lender for such Credit Advance in excess
of the Borrowing Base for such month and (ii) two and one-half percent (2.50%) of the greater of (A) the highest amount by which
the Credit Advance during such month exceeds the Maximum Credit Amount and (B) if any, the amount approved by Lender for such Credit
Advance in excess of the Maximum Credit Amount for such month. Such fees shall be payable on the first day of each month with respect
to the preceding calendar month.

 

(vii)         
Wire/Check Fee. For each wire transfer or check issued by Lender, on behalf of a Borrower, Borrowers shall pay Lender
Lender’s standard fee for such service which fee is $45 as of the Closing Date.

 

		VI.	CONDITIONS PRECEDENT

 

6.1             
Conditions Precedent to Loans. Without limitation of the discretionary nature of each Loan hereunder, the Loans to
be made by Lender shall be subject to the fulfillment (to the satisfaction of Lender) of each of the conditions precedent set forth
on Schedule II and:

 

(a)              
Lender shall have received a Request for Loan for such Loan in form and in substance satisfactory to Lender;

 

(b)              
The representations and warranties set forth in this Agreement and in the other Credit Documents, shall be true and correct
in all material respects on and as of the date of such Loan with the same effect as though made on and as of such date, except
to the extent that any such representation or warranty is expressly stated to relate to a specific earlier date, in which case,
such representation and warranty shall be true and correct as of such earlier date;

 

(c)              
No Default or Event of Default shall have occurred and be continuing at the time of and after giving effect to such Loan;

 

(d)              
Lender shall have received all fees due and payable on or prior to such date; and

 

(e)              
All legal matters incident to such Loan shall be satisfactory to Lender and its counsel.

 

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		VII.	REPRESENTATIONS, WARRANTIES AND COVENANTS

 

To induce Lender to
enter into this Agreement and to make the Loans, each Corporate Credit Party represents and warrants (each of which representations
and warranties shall survive the execution and delivery of this Agreement), and promises to and agrees with Lender until the Termination
Date as follows:

 

7.1             
Corporate Existence; Compliance with Law. Each Corporate Credit Party: (a) is, as of the Closing Date, and will
continue to be (i) a corporation or limited liability company duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or formation, (ii) duly qualified to do business and in good standing in each other
jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except where
the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect, and (iii) in compliance
with all Requirements of Law and Contractual Obligations, except to the extent failure to comply therewith could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect; and (b) has and will continue to have (i) the
requisite power and authority and the legal right to execute, deliver and perform its obligations under the Credit Documents, and
to own, pledge, mortgage or otherwise encumber and operate its properties, to lease the property it operates under lease, and to
conduct its business as now, heretofore or proposed to be conducted, and (ii) all licenses, permits, franchises, rights, powers,
consents or approvals from or by all Persons or Governmental Authorities having jurisdiction over Borrowers which are necessary
or appropriate for the conduct of its business, except to the extent failure to have any such licenses, permits, franchises, rights,
powers, consents or approvals could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

7.2             
Names; Organizational Information; Collateral Locations. Disclosure Schedule 7.2 sets forth each Corporate
Credit Party’s name as it appears in official filing in the state of its incorporation or other organization, the type of
entity of each Corporate Credit Party, the state of each Corporate Credit Party’s incorporation or organization and organizational
identification number issued by each Corporate Credit Party’s state of incorporation or organization or a statement that
no such number has been issued. The location of each Corporate Credit Party’s chief executive office, corporate offices,
warehouses, other locations of Collateral and locations where records with respect to Collateral are kept (including in each case
the county of such locations) are as set forth in Disclosure Schedule 7.2 and the Perfection Certificate submitted to Lender
as attached hereto and, except as set forth in such Disclosure Schedule, such locations have not changed during the preceding twelve
months. With respect to each of the premises identified in Disclosure Schedule 7.2 and the Perfection Certificate submitted
to Lender as attached hereto on or prior to the Closing Date a bailee, landlord or mortgagee agreement acceptable to Lender has
been obtained. As of the Closing Date, during the prior five years, except as set forth in Disclosure Schedule 7.2, and
the Perfection Certificate submitted to Lender as attached hereto, no Corporate Credit Party shall have been known as or conducted
business in any other name (including trade names).

 

7.3             
Power; Authorization; Enforceable Obligations. The execution, delivery and performance by each Credit Party of the
Credit Documents to which it is a party, and the creation of all Liens provided for herein and therein: (a) are and will continue
to be within such Credit Party’s power and authority; (b) have been and will continue to be duly authorized by all necessary
or proper action; (c) are not and will not be in violation of any Requirement of Law or Contractual Obligation of such Credit Party;
(d) do not and will not result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral;
and (e) do not and will not require the consent or approval of any Governmental Authority or any other Person. As of the Closing
Date, each Credit Document shall have been duly executed and delivered on behalf of each Credit Party, and each such Credit Document
upon such execution and delivery shall be and will continue to be a legal, valid and binding obligation of each Credit Party, enforceable
against it in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency and other similar
laws affecting creditors’ rights generally.

 

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7.4             
Financial Statements and Projections; Books and Records.

 

(a)              
The Financial Statements delivered by each Corporate Credit Party to Lender for its most recently ended Fiscal Year and
Fiscal Quarter, are true, correct and complete and reflect fairly and accurately the financial condition of such Corporate Credit
Party as of the date of each such Financial Statement in accordance with GAAP. Except as reflected in the Financial Statements
and/or on Disclosure Schedule 9(b), no Corporate Credit Party has obligations for borrowed funds or long term capital leases
or other liabilities for the payment of money except nominal accruals for operating expenses not exceeding $50,000 in the aggregate.
The Projections most recently delivered by each Corporate Credit Party to Lender have been prepared in good faith, with care and
diligence and use assumptions that are reasonable under the circumstances at the time such Projections were prepared and as of
the date delivered to Lender and all such assumptions are disclosed in the Projections.

 

(b)              
Each Corporate Credit Party shall keep adequate Books and Records with respect to the Collateral and its business activities
in which proper entries, reflecting all financial transactions, and payments and credits received on, and all other dealings with,
the Collateral, will be made in accordance with GAAP and all Requirements of Law and on a basis consistent with the Financial Statements.

 

7.5             
Material Adverse Change. Between the date of each Corporate Credit Party’s most recent Financial Statements
delivered to Lender and the Closing Date: (a) no Corporate Credit Party has incurred any obligations, contingent or non-contingent
liabilities, or liabilities for Charges, long-term leases or unusual forward or long-term commitments which are not reflected in
the Projections delivered on the Closing Date and which could, alone or in the aggregate, reasonably be expected to have a Material
Adverse Effect; (b) there has been no material deviation from such Projections; and (c) no events have occurred which alone or
in the aggregate has had or could reasonably be expected to have a Material Adverse Effect. No Requirement of Law or Contractual
Obligation of any Corporate Credit Party has or have had or could reasonably be expected to have a Material Adverse Effect. No
Corporate Credit Party is in default, and to each Corporate Credit Party’s knowledge no third party is in default, under
or with respect to any of its Contractual Obligations, which alone or in the aggregate has had or could reasonably be expected
to have a Material Adverse Effect.

 

7.6             
Real Estate; Property. The real estate listed in Disclosure Schedule 7.6 constitutes all of the real property
owned, leased, or used by each Corporate Credit Party in its business (the “Real Property”), and no Corporate
Credit Party will execute any material agreement or contract in respect of such real estate after the date of this Agreement without
giving Lender prompt prior written notice thereof. Each Corporate Credit Party holds and will continue to hold good and marketable
fee simple title to all of its owned real estate, and good and marketable title to all of its other properties and assets, and
valid and insurable leasehold interests in all of its leases (both as lessor and lessee, sublessee or assignee), and none of the
properties and assets of any Corporate Credit Party are or will be subject to any Liens, except Permitted Liens.

 

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7.7             
Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness. Except as set forth in Disclosure Schedule
7.7, as of the Closing Date, no Corporate Credit Party has any Subsidiaries, is not engaged in any joint venture or partnership
with any other Person, or is an Affiliate of any other Person. All of the issued and outstanding Stock of each Corporate Credit
Party (including all rights to purchase, options, warrants or similar rights or agreements pursuant to which any Corporate Credit
Party may be required to issue, sell, repurchase or redeem any of its Stock) as of the Closing Date is owned by each of the Stockholders
(and in the amounts) set forth on Disclosure Schedule 7.7 or is disclosed on such Disclosure Schedule 7.7 as issued
by a public company. All outstanding Indebtedness of each Corporate Credit Party as of the Closing Date is described in Disclosure
Schedule 9(b).

 

7.8             
Government Regulation; Margin Regulations. No Corporate Credit Party is subject to or regulated under or any federal
or state statute, rule or regulation that restricts or limits any Corporate Credit Party’s ability to incur Indebtedness,
pledge its assets, or to perform its obligations under the Credit Documents. The making of a Loan, the application of the proceeds
and repayment thereof, and the consummation of the transactions contemplated by the Credit Documents do not and will not violate
any Requirement of Law. No Corporate Credit Party is engaged, nor will it engage in the business of extending credit for the purpose
of “purchasing” or “carrying” any “margin security” as such terms are defined in Regulation
U of the Federal Reserve Board as now and hereafter in effect (such securities being referred to herein as “Margin Stock”).
No Corporate Credit Party owns Margin Stock, and none of the proceeds of any Loan or other extensions of credit under any Credit
Document will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock or reducing or retiring
any Indebtedness which was originally incurred to purchase or carry any Margin Stock. No Corporate Credit Party will take or permit
to be taken any action which might cause any Credit Document to violate any regulation of the Federal Reserve Board.

 

7.9             
Taxes; Charges. Except as disclosed on Disclosure Schedule 7.9 all tax returns, reports and statements required
by any Governmental Authority to be filed by each Corporate Credit Party have, as of the Closing Date, been filed and will, until
the Termination Date, be filed with the appropriate Governmental Authority and no tax Lien has been filed against each Corporate
Credit Party or any of each Corporate Credit Party’s property. Proper and accurate amounts have been and will be withheld
by each Corporate Credit Party from its employees for all periods in complete compliance with all Requirements of Law and such
withholdings have and will be timely paid to the appropriate Governmental Authorities. Disclosure Schedule 7.9 sets forth
as of the Closing Date those taxable years for which each Corporate Credit Party’s tax returns are currently being audited
by the IRS or any other applicable Governmental Authority and any assessments or threatened assessments in connection with such
audit, or otherwise currently outstanding. Except as described on Disclosure Schedule 7.9, no Corporate Credit Party nor
its respective predecessors are liable for any Charges: (a) under any agreement (including any tax sharing agreements or agreement
extending the period of assessment of any Charges) or (b) to any Corporate Credit Party’s knowledge, as a transferee. As
of the Closing Date, no Corporate Credit Party has agreed or been requested to make any adjustment under IRC Section 481(a), by
reason of a change in accounting method or otherwise, which could reasonably be expected to have a Material Adverse Effect.

 

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7.10         
Payment of Obligations. Each Credit Party will pay, discharge or otherwise satisfy at or before maturity or before
they become delinquent, as the case may be, all of its Charges and other obligations of whatever nature, except payments to vendors
or suppliers in the ordinary course of business consistent with past practice or where the amount or validity thereof is currently
being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided
on the books of such Credit Party and none of the Collateral is or could reasonably be expected to become subject to any Lien or
forfeiture or loss as a result of such contest.

 

7.11         
ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other existing
ERISA Events, could reasonably be expected to result in a liability of any Corporate Credit Party of more than the Minimum Actionable
Amount. The present value of all accumulated benefit obligations of any Corporate Credit Party under each Plan (based on the assumptions
used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent Financial Statements
reflecting such amounts, exceed the fair market value of the assets of such Plan by more than the Minimum Actionable Amount, and
the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of
Statement of Financial Account Standards No. 87) did not, as of the date of the most recent Financial Statements reflecting such
amounts, exceed the fair market value of the assets of such underfunded Plans by more than the Minimum Actionable Amount. No Corporate
Credit Party has incurred or reasonably expects to incur any Withdrawal Liability in excess of the Minimum Actionable Amount.

 

7.12         
Litigation. No Litigation is pending or, to the knowledge of any Corporate Credit Party, threatened by or against
any Corporate Credit Party or against any Corporate Credit Party’s properties or revenues (a) with respect to any of the
Credit Documents or any of the transactions contemplated hereby or thereby, or (b) which could reasonably be expected to have a
Material Adverse Effect. Except as set forth on Disclosure Schedule 7.12, as of the Closing Date there is no Litigation
pending or, to the knowledge of any Corporate Credit Party, threatened against any Corporate Credit Party which seeks damages in
excess of the Minimum Actionable Amount or injunctive relief or alleges criminal misconduct of any Corporate Credit Party. Each
Corporate Credit Party shall notify Lender in writing within five (5) Business Days of learning of the existence, threat or commencement
of any Litigation against any Corporate Credit Party or any Plan or any allegation of criminal misconduct against any Corporate
Credit Party.

 

7.13         
Intellectual Property. As of the Closing Date, all material Intellectual Property owned or used by each Corporate
Credit Party is listed, together with application or registration numbers, where applicable, in Disclosure Schedule 7.13.
Each Corporate Credit Party is the sole legal and beneficial owner, or is licensed on commercial terms to use, all Intellectual
Property necessary to conduct its business as currently conducted except for such Intellectual Property the failure of which to
own or license could not reasonably be expected to have a Material Adverse Effect. Each Corporate Credit Party will maintain the
patenting and registration of all Intellectual Property with the United States Patent and Trademark Office, the United States Copyright
Office, or other appropriate Governmental Authority and each Corporate Credit Party will promptly patent or register, as the case
may be, all new Intellectual Property material to the operation of their respective businesses where applicable and notify Lender
in writing five (5) Business Days prior to filing any such new patent or registration. With respect to Intellectual Property licensed
by each Corporate Credit Party, an agreement acceptable to Lender from the licensor of such Intellectual Property will be obtained
permitting Lender to use such Intellectual Property or sell the Goods containing such Intellectual Property following the occurrence
of a Default. No Corporate Credit Party is aware of any infringement on the Intellectual Property of any third party in the carrying
on of its business in the normal course.

 

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7.14         
Full Disclosure. No information contained in any Credit Document, the Financial Statements or any written statement
furnished by or on behalf of any Corporate Credit Party under any Credit Document, or to induce Lender to execute the Credit Documents,
contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein
or therein not misleading in light of the circumstances under which they were made.

 

7.15         
Hazardous Materials. Except as set forth on Disclosure Schedule 7.15, as of the Closing Date, (a) each Real
Property is maintained free of contamination from any Hazardous Material, (b) no Corporate Credit Party is subject to any Environmental
Liabilities or, to any Corporate Credit Party’s knowledge, potential Environmental Liabilities, in excess of the Minimum
Actionable Amount in the aggregate, (c) no notice has been received by any Corporate Credit Party identifying it as a “potentially
responsible party” or requesting information under CERCLA or analogous state statutes, and to the knowledge of any Corporate
Credit Party, there are no facts, circumstances or conditions that may result in such Corporate Credit Party being identified as
a “potentially responsible party” under CERCLA or analogous state statutes; and (d) each Corporate Credit Party has
provided to Lender copies of all existing environmental reports, reviews and audits and all written information pertaining to actual
or potential Environmental Liabilities, in each case relating to any Corporate Credit Party. Each Corporate Credit Party: (i) shall
comply in all material respects with all applicable Environmental Laws and environmental permits; (ii) shall notify Lender in writing
within seven days if and when it becomes aware of any Release, on, at, in, under, above, to, from or about any of its Real Property;
and (iii) shall promptly forward to Lender a copy of any order, notice, permit, application, or any communication or report received
by it or any Corporate Credit Party in connection with any such Release.

 

7.16         
Insurance. As of the Closing Date, Disclosure Schedule 7.16 lists all insurance of any nature maintained for
current occurrences by Borrowers, as well as a summary of the terms of such insurance. Each Corporate Credit Party other than Digirad
Corporation shall deliver to Lender certified copies and endorsements to all of its (a) “All Risk” and business interruption
insurance policies naming Lender as loss payee, and (b) general liability and other liability policies naming Lender as an additional
insured. All policies of insurance on real and personal property will contain an endorsement, in form and substance acceptable
to Lender, showing loss payable to Lender (Form 438 BFU or equivalent) and extra expense, and replacement value of all occupied
Real Estate locations, and business interruption endorsements. Such endorsement, or an independent instrument furnished to Lender,
will provide that the insurance companies will give Lender at least thirty (30) days prior written notice before any such policy
or policies of insurance shall be altered or canceled and that no act or default of any Corporate Credit Party or any other Person
shall affect the right of Lender to recover under such policy or policies of insurance in case of loss or damage. Each Borrower
shall direct all present and future insurers under its “All Risk” policies of insurance to pay all proceeds payable
thereunder directly to Lender. If any insurance proceeds are paid by check, draft or other instrument payable to any Corporate
Credit Party and Lender jointly, Lender may endorse each Corporate Credit Party’s name thereon and do such other things as
Lender may deem advisable to reduce the same to cash. Lender reserves the right at any time, upon review of any Corporate Credit
Party’s risk profile, to require additional forms and limits of insurance. Each Corporate Credit Party shall, on each anniversary
of the Closing Date and from time to time at Lender’s request, deliver to Lender a report by a reputable insurance broker,
satisfactory to Lender, with respect to such Person’s insurance policies.

 

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7.17         
Deposit and Disbursement Accounts. Disclosure Schedule 7.17 lists all banks and other financial institutions
at which each Corporate Credit Party, maintains deposits and/or other accounts and correctly identifies the name, address and telephone
number of each such depository, the name in which the account is held, a description of the purpose of the account, and the complete
account number.

 

7.18         
Accounts. No Borrower has made, nor will any Borrower make, any agreement with any Account Debtor for any extension
of time for the payment of any Account, any compromise or settlement for less than the full amount thereof, any release of any
Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance for prompt or early payment allowed
by a Borrower and such other compromises or settlements in the ordinary course of its business consistent with historical practice
and as previously disclosed to Lender in writing. With respect to the Accounts pledged as collateral pursuant to any Credit Document
(a) the amounts shown on all invoices, statements and reports which may be delivered to the Lender with respect thereto are actually
and absolutely owing to a Borrower as indicated thereon and are not in any way contingent; (b) no payments have been or shall be
made thereon except payments immediately delivered to Lender as required hereunder; and (c) to each Borrower’s knowledge
all Account Debtors have the capacity to contract.

 

7.19         
Conduct of Business. Each Corporate Credit Party (a) shall conduct its business substantially as now conducted or
as otherwise permitted hereunder, and (b) shall at all times maintain, preserve and protect all of the Collateral where applicable
and each Corporate Credit Party’s other property, used or useful in the conduct of its business and keep the same in good
repair, working order and condition and make, or cause to be made, all necessary or appropriate repairs, replacements and improvements
thereto consistent with industry practices.

 

7.20         
Further Assurances. At any time and from time to time, upon the written request of Lender and at the sole expense
of Credit Parties, each Credit Party shall promptly and duly execute and deliver any and all such further instruments and documents
and take such further action as Lender may reasonably deem desirable (a) to obtain the full benefits of this Agreement and the
other Credit Documents, (b) to protect, preserve and maintain Lender’s rights in any Collateral, or (c) to enable Lender
to exercise all or any of the rights and powers herein granted.

 

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		VIII.	FINANCIAL REPORTS; FINANCIAL COVENANTS

 

8.1             
Reports and Notices. From the Closing Date until the Termination Date, each Borrower shall deliver to Lender:

 

(a)              
within twenty (20) days following the end of each Fiscal Month, a Monthly Statement Report of such Borrower in the form
of Exhibit B as of the last day of the previous Fiscal Month together with copies of all bank statements for deposit
accounts at Bremer Bank or such other bank where Borrower deposits rents;

 

(b)              
within twenty (20) days following the end of each Fiscal Month, the Financial Statements for such Fiscal Month of such Borrower,
which shall provide comparisons to budget and actual results for the corresponding period during the prior Fiscal Year, both on
a monthly and year-to-date basis, and accompanied by a certification in the form of Exhibit D by the Chief Executive Officer
or Chief Financial Officer of Borrowing Representative that such Financial Statements are complete and correct, that there was
no Default (or specifying those Defaults of which he or she was aware), and showing in reasonable detail the calculations used
in determining compliance with the financial covenants hereunder;

 

(c)              
within ninety (90) days following the close of each Fiscal Year, the Financial Statements of Digirad Corporation for such
Fiscal Year prepared in accordance with GAAP and audited and certified by an independent certified accounting firm acceptable to
Lender (as of the Closing Date, BDO USA, LLP shall be deemed acceptable to Lender) which shall provide comparisons to the prior
Fiscal Year, and shall be accompanied by (i) a statement in reasonable detail showing the calculations used in determining compliance
with the financial covenants hereunder, (ii) a report from Digirad Corporation’s accountants to the effect that in connection
with their audit examination nothing has come to their attention to cause them to believe that a Default has occurred or specifying
those Defaults of which they are aware, and (iii) any management letter that may be issued;

 

(d)              
at least thirty (30) days before the beginning of each Fiscal Year of each Borrower, the Projections, each in reasonable
detail, representing such Borrower’s good faith Projections and certified by such Borrower’s President or Chief Financial
Officer (or officers having corresponding functions and responsibilities) as being the most accurate Projections available and
identical to the Projections used by such Borrower for internal planning purposes, together with such supporting schedules and
information as Lender may in its discretion require;

 

(e)              
[Intentionally omitted];

 

(f)               
[Intentionally omitted];

 

(g)              
[Intentionally omitted];

 

(h)              
promptly upon their distribution, copies of all financial statements, reports and proxy statements which any Borrower shall
have sent to its stockholders, promptly after the sending or filing thereof, copies of all regular and periodic reports which any
Credit Party shall file with the Securities and Exchange Commission or any national securities exchange; and

 

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(i)                
each Borrower will cause each Guarantor to comply with the financial reporting requirements set forth in their respective
Guaranties.

 

8.2             
Financial Covenants. No Borrower or Corporate Credit Party shall breach any of the financial covenants set forth
in Schedule III.

 

8.3             
Other Reports and Information. Borrower Representative shall advise Lender promptly, in reasonable detail, of: (a)
any Lien, other than Permitted Liens, attaching to or asserted against any of the Collateral or any occurrence causing a material
loss or decline in value of any Collateral and the estimated (or actual, if available) amount of such loss or decline; (b) any
material change in the composition of the Collateral; and (c) the occurrence of any Default, Event of Default or other event which
has had or could reasonably be expected to have a Material Adverse Effect. Each Corporate Credit Party shall, upon request of Lender,
furnish to Lender such other reports and information in connection with the affairs, business, financial condition, operations,
prospects or management of such Corporate Credit Party or the Collateral as Lender may request, all in reasonable detail. If any
internally prepared financial information, including that required under Section 8.1 is unsatisfactory in any manner to Lender,
Lender may request that the Borrower’s independent certified accountants review the same.

 

8.4             
Good Standing Certificates. Together with the delivery of the Financial Statements referred to in Section 8.1(c),
each Corporate Credit Party shall provide to Lender a certificate of good standing from its state of incorporation or organization.

 

		IX.	NEGATIVE COVENANTS

 

Each Corporate Credit
Party, (other than Digirad Corporation, Lone Star Value Management, LLC and Lone Star Value Co-Invest I, LP) covenants and agrees
that, without Lender’s prior written consent, from the Closing Date until the Termination Date, such Credit Party shall not,
directly or indirectly, by operation of law or otherwise:

 

(a)              
form any Subsidiary or merge with, consolidate with, acquire all or substantially all of the assets or capital stock of,
or otherwise combine with or make any investment in or divide, or, except as provided in clause 9(c) below, loan or advance to,
any Person;

 

(b)              
cancel any debt owing to it or create, incur, assume, guaranty, or permit to exist any Indebtedness without the prior written
consent of Lender, except: (i) the Obligations, (ii) Indebtedness existing as of the Closing Date set forth on Disclosure Schedule
9(b); provided, however, that payments to Lone Star Value Co-Invest I, LP, Lone Star Value Management, LLC and Jeffrey E. Eberwein
set forth therein are otherwise restricted by the terms of their respective Subordination Agreement or by the terms of this Agreement
and shall otherwise not be paid using the proceeds of the Loans, (iii) deferred taxes, (iv) by endorsement of instruments or items
of payment for deposit to the general account of Borrower, (v) for Guaranteed Indebtedness incurred for the benefit of a Borrower
if the primary obligation is permitted by this Agreement; (vi) Purchase Money Indebtedness; and (vii) Indebtedness to trade creditors
and operating expense accruals in the normal course of business;

 

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(c)              
enter into any lending, borrowing or other commercial transaction with any of its employees, directors or Affiliates (including
upstreaming and downstreaming of cash and intercompany loan and advances) other than (i) loans or advances to employees in the
ordinary course of business in an aggregate outstanding amount not exceeding the Minimum Actionable Amount, (ii) Subordinated Debt,
or (iii) advances to KBS Builders, Inc. or EdgeBuilder, Inc./Glenbrook Building Supply, Inc. for working capital as herein provided;
(provided, however, that notwithstanding anything to the contrary in the preceding clauses (i), (ii), and (iii), or elsewhere herein,
Digirad Corporation is not restricted in paying any obligations of its direct and indirect subsidiaries and, in particular, Digirad
Corporation may pay these obligations by making either a (i) equity contribution to ATRM Holdings, Inc. or (ii) loan to ATRM Holdings,
Inc. subject to the applicable Subordination Agreement to enable ATRM Holdings, Inc. to pay up to $300,000 of the expenses of each
of KBS Builders, Inc. and EdgeBuilder, Inc./Glenbrook Building Supply, Inc. provided that: (x) prior notice together with copies
of applicable invoice/statement is given to Lender; (y) there then exists no Event of Default at the time of such payment or as
a result thereof; and (z) an overadvance is not created as a result of such payment);

 

(d)              
make any changes in any of its business objectives, purposes, or operations which could reasonably be expected to adversely
affect repayment of the Obligations or could reasonably be expected to have a Material Adverse Effect or engage in any business
other than that presently engaged in or proposed to be engaged in the Projections delivered to Lender on the Closing Date or amend
its charter or by-laws or other organizational documents;

 

(e)              
create or permit any Lien on any of its properties or assets, except for Permitted Liens;

 

(f)               
sell, transfer, issue, convey, assign or otherwise dispose of any of its assets or properties, including its Accounts or
any shares of its Stock (which restriction shall not apply to public sale of stock of Digirad Corporation) or engage in any sale-leaseback,
synthetic lease or similar transaction (provided, that the foregoing shall not prohibit the sale of Inventory or obsolete or unnecessary
Equipment in the ordinary course of its business);

 

(g)              
change its name, state of incorporation or organization, chief executive office, corporate offices, warehouses or other
Collateral locations, or location of its records concerning the Collateral, or acquire, lease or use any real estate after the
Closing Date without such Corporate Credit Party, in each instance, giving thirty (30) days prior written notice thereof to Lender
and taking all actions deemed necessary or appropriate by Lender to continuously protect and perfect Lender’s Liens upon
the Collateral or store or hold any assets of another Person;

 

(h)              
establish any depository or other bank account of any kind with any financial institution (other than the accounts set forth
on Disclosure Schedule 7.17) without Lender’s prior written consent and then only after such Corporate Credit Party
has implemented agreements with such bank or other institution and Lender acceptable to Lender; or

 

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(i)                
make or permit any Restricted Payment other than (i) interest and principal, when due without acceleration or modification
of the amortization as in effect on the Closing Date, under Indebtedness (not including Subordinated Debt, payments of which shall
be permitted only in accordance with the terms of the relevant Subordination Agreement made in favor of Lender) described in Disclosure
Schedule (9(b)) or otherwise permitted under Article IX(b)(vi) and (ii) so long as (x) the tax status of such Corporate
Credit Party is a pass thru or disregarded entity within the meaning of the Internal Revenue Code of 1986, as amended, (y) no Default
or Event of Default shall have occurred and be continuing and (z) after first providing such supporting documentation as Lender
may request (including the personal state and federal tax returns of each Stockholder), such Credit Party may pay Pass Thru Distributions
not exceeding Pass Thru Tax Liabilities. Payments to Stockholders shall be made so as to be available when the tax is due, including
in respect of estimated tax payments.

 

		X.	SECURITY INTEREST

 

10.1         
Grant of Security Interest.

 

(a)              
As collateral security for the prompt and complete payment and performance of all of the Obligations, each Corporate Credit
Party executing this Agreement hereby grants to the Lender a security interest in and Lien upon all of its property and assets,
whether real or personal, tangible or intangible, and whether now owned or hereafter acquired, or in which it now has or at any
time in the future may acquire any right, title, or interest, including all of the following property in which it now has or at
any time in the future may acquire any right, title or interest: all Accounts; all Deposit Accounts and all funds on deposit therein;
all cash and cash equivalents; all commodity contracts; all investments, Stock and Investment Property; all Inventory; all Equipment;
all Goods; all Chattel Paper, all Documents; all Instruments; all Books and Records; all General Intangibles; each Life Insurance
Policy; all Supporting Obligations; all Letter-of-Credit Rights; and to the extent not otherwise included, all Proceeds and products
of all and any of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing,
but excluding in all events Hazardous Waste (all of the foregoing, together with any other collateral pledged to the Lender pursuant
to any other Credit Document, collectively, the “Collateral”).

 

(b)              
Each Corporate Credit Party executing this Agreement and Lender agree that this Agreement creates, and is intended to create,
valid and continuing Liens upon the Collateral in favor of Lender. Each such Corporate Credit Party represents, warrants and promises
to Lender that: (i) such Corporate Credit Party is the sole owner of each item of the Collateral upon which it purports to grant
a Lien pursuant to the Credit Documents, and has good and marketable title thereto free and clear of any and all Liens or claims
of others, other than Permitted Liens; (ii) the security interests granted pursuant to this Agreement will constitute valid perfected
security interests in all of the Collateral in favor of Lender as security for the prompt and complete payment and performance
of the Obligations, enforceable in accordance with the terms hereof against any and all creditors of and purchasers from such Corporate
Credit Party (other than purchasers of Inventory in the ordinary course of business) and such security interests are prior to all
other Liens on the Collateral in existence on the date hereof except for Permitted Liens which have priority by operation of law;
and (iii) no effective security agreement, financing statement, equivalent security or Lien instrument or continuation statement
covering all or any part of the Collateral is or will be on file or of record in any public office, except those relating to Permitted
Liens. Each Corporate Credit Party executing this Agreement promises to defend the right, title and interest of Lender in and to
the Collateral against the claims and demands of all Persons whomsoever, and each Corporate Credit Party shall take such actions,
including (x) upon request by Lender, the prompt delivery of all negotiable Documents, original Instruments, Chattel Paper and
certificated Stock owned by such Corporate Credit Party to Lender, (y) notification of Lender’s interest in Collateral at
Lender’s request, and (z) the institution of litigation against third parties as shall be prudent in order to protect and
preserve such Credit Party’s and Lender’s respective and several interests in the Collateral. Each Corporate Credit
Party executing this Agreement shall mark its Books and Records pertaining to the Collateral to evidence the Credit Documents and
the Liens granted under the Credit Documents. All Chattel Paper shall be marked with the following legend: “This writing
and the obligations evidenced or secured hereby are subject to the security interest of Gerber Finance Inc.”

 

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(c)              
Each Corporate Credit Party executing this Agreement shall obtain or use its best efforts to obtain waivers or subordinations
of Liens from landlords and mortgagees, and each Corporate Credit Party shall in all instances obtain signed acknowledgments of
Lender’s Liens from bailees having possession of such Corporate Credit Party’s Goods that they hold for the benefit
of Lender.

 

(d)              
Each Corporate Credit Party executing this Agreement shall obtain authenticated control letters from each issuer of uncertificated
securities, securities intermediary, or commodities intermediary issuing or holding any financial assets or commodities to or for
such Credit Party.

 

(e)              
Each Corporate Credit Party executing this Agreement shall establish and maintain the cash management system described in
Schedule IV. All payments on account of the Obligations required by Sections 3.1 and 10.2 hereof shall be
made to or deposited in the blocked account described in Schedule IV in accordance with the terms thereof.

 

(f)               
Each Corporate Credit Party executing this Agreement shall promptly, and in any event within two (2) Business Days after
becoming a beneficiary under a letter of credit, notify Lender thereof and enter into a tri-party agreement with Lender and the
issuer and/or confirmation bank with respect to Letter-of-Credit Rights assigning such Letter-of-Credit Rights to Lender and directing
all payments thereunder to Lender, all in form and substance reasonably satisfactory to Lender.

 

(g)              
Each Corporate Credit Party executing this Agreement shall take all steps necessary to grant Lender control of all electronic
chattel paper in accordance with the UCC and all “transferable records” as defined in each of the Uniform Electronic
Transactions Act and the Electronic Signatures in Global and National Commerce Act.

 

(h)              
Each Corporate Credit Party executing this Agreement hereby irrevocably authorizes Lender at any time and from time to time
to file in any filing office in any Uniform Commercial UCC jurisdiction any initial financing statements and amendments thereto
that (i) indicate the Collateral (x) as all assets of such Corporate Credit Party or words of similar effect, regardless of whether
any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC or such jurisdiction, or (y) as
being of an equal or lesser scope or with greater detail, and (ii) contain any other information required by Part 5 of Article
9 of the UCC or the filing office for acceptance of any financing statement or amendment, including whether each Corporate Credit
Party is an organization, the type of organization and any organization identification number issued to each Corporate Credit Party,
and in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber
to be cut, a sufficient description of real property to which the Collateral relates. Each Corporate Credit Party agrees to furnish
any such information to Lender promptly upon request. Each Corporate Credit Party also ratifies its authorization for Lender to
have filed any initial financing statements or amendments thereto if filed prior to the date hereof.

 

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(i)                
Each Corporate Credit Party shall promptly, and in any event within two (2) Business Days after the same is acquired by
it, notify Lender of any commercial tort claim (as defined in the UCC) acquired by it and unless otherwise consented by Lender,
each Corporate Credit Party shall enter into a supplement to this Agreement, granting to Lender a Lien in such commercial tort
claim.

 

(j)                
It is the intent of each Corporate Credit Party and Lender that none of the Collateral other than as set forth in the Mortgage,
is or shall be regarded as Fixtures and each Corporate Credit Party represents and warrants that it has not made and is not bound
by any lease or other agreement that is inconsistent with such intent. Nevertheless, if the Collateral or any part thereof is or
is to become attached or affixed to any real estate, each Corporate Credit Party will, upon request, furnish Lender with a disclaimer
or subordination in form satisfactory to Lender of their interests in the Collateral from all Persons having an interest in the
real estate to which the Collateral is attached or affixed, together with the names and addresses of the record owners of, and
all other persons having interest in, and a general description of, such real estate.

 

10.2         
Lender’s Rights.

 

(a)              
Lender may, (i) at any time in Lender’s own name or in the name of each Corporate Credit Party, communicate with Account
Debtors, parties to Contracts, and obligors in respect of Instruments, Chattel Paper or other Collateral to verify to Lender’s
satisfaction, the existence, amount and terms of any such Accounts, Contracts, Instruments or Chattel Paper or other Collateral,
and (ii) at any time and without prior notice to any Corporate Credit Party notify Account Debtors, parties to Contracts, and obligors
in respect of Chattel Paper, Instruments, or other Collateral following an Event of Default that the Collateral has been assigned
to Lender and that payments shall be made directly to Lender. Following an Event of Default and upon the request of Lender, each
Corporate Credit Party shall so notify such Account Debtors, parties to Contracts, and obligors in respect of Instruments, Chattel
Paper or other Collateral. Each Corporate Credit Party hereby constitutes Lender or Lender’s designee such Corporate Credit
Party’s attorney with power to endorse such Corporate Credit Party’s name upon any notes, acceptance drafts, money
orders or other evidences of payment or Collateral. The provisions of this Section as relate to KBS Builders, Inc. supplement those
in Loan and Security Agreement dated February 23, 2016, as amended.

 

(b)              
Each Corporate Credit Party shall remain liable under each Contract, Instrument and License to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, and Lender shall have no obligation or liability whatsoever
to any Person under any Contract, Instrument or License (between any Borrower and any Person other than Lender) by reason of or
arising out of the execution, delivery or performance of this Agreement, and Lender shall not be required or obligated in any manner
(i) to perform or fulfill any of the obligations of Borrower, (ii) to make any payment or inquiry, or (iii) to take any action
of any kind to collect, compromise or enforce any performance or the payment of any amounts which may have been assigned to it
or to which it may be entitled at any time or times under or pursuant to any Contract, Instrument or License.

 

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(c)              
Each Corporate Credit Party shall, with respect to each owned, leased, or controlled property (including public warehouses),
during normal business hours and upon reasonable advance notice (unless a Default or Event of Default shall have occurred and be
continuing, in which event no notice shall be required and Lender shall have access at any and all times): (i) provide access to
such property to Lender and any of its officers, employees and agents, as frequently as Lender determines to be appropriate; (ii)
permit Lender and any of its officers, employees and agents to inspect, audit and make extracts and copies from all of such Corporate
Credit Party’s Books and Records; and (iii) permit Lender to inspect, review, evaluate and make physical verifications and
appraisals of the Inventory and other Collateral in any manner and through any medium that Lender considers advisable, and each
Corporate Credit Party agrees to render to Lender, at Borrowers’ cost and expense, such clerical and other assistance as
may be reasonably requested with regard thereto.

 

(d)              
After the occurrence and during the continuance of a Default or Event of Default, each Corporate Credit Party at its own
expense, shall cause the certified public accountant then engaged by any Borrower to prepare and deliver to Lender at any time
and from time to time, promptly upon Lender’s request, the following reports: (i) a reconciliation of all Accounts; (ii)
an aging of all Accounts; (iii) trial balances; and (iv) test verifications of such Accounts as Lender may request. Each Corporate
Credit Party at its own expense, shall cause its certified independent public accountants to deliver to Lender the results of any
physical verifications of all or any portion of the Inventory made or observed by such accountants when and if such verification
is conducted. Lender shall be permitted to observe and consult with such Corporate Credit Party’s accountants in the performance
of these tasks.

 

10.3         
Lender’s Appointment as Attorney-in-Fact. On the Closing Date, each Corporate Credit Party shall execute and
deliver a Power of Attorney in the form attached as Exhibit E. The power of attorney granted pursuant to the Power of Attorney
and all powers granted under any Credit Document are powers coupled with an interest and shall be irrevocable until the Termination
Date. The powers conferred on Lender under the Power of Attorney are solely to protect Lender’s interests in the Collateral
and shall not impose any duty upon it to exercise any such powers. Lender agrees, except for the powers granted in clause (h) of
the Power of Attorney, not to exercise any power or authority granted under the Power of Attorney unless an Event of Default has
occurred and is continuing. Each Corporate Credit Party authorizes Lender to file any financing or continuation statement without
the signature of Borrowers to the extent permitted by applicable law. NONE OF LENDER OR ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS OR REPRESENTATIVES SHALL BE RESPONSIBLE TO ANY GRANTOR FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE,
EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A
COURT OF COMPETENT JURISDICTION, NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

 

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10.4         
Grant of License to Use Intellectual Property Collateral. Each Corporate Credit Party hereby grants to Lender an
irrevocable, non-exclusive license (exercisable upon the occurrence and during the continuance of an Event of Default) without
payment of royalty or other compensation to any Corporate Credit Party to use, transfer, license or sublicense any Intellectual
Property now owned, licensed to, or hereafter acquired by any Corporate Credit Party, and wherever the same may be located, and
including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer
software and programs used for the compilation or printout thereof, and represents, promises and agrees that any such license or
sublicense is not and will not be in conflict with the contractual or commercial rights of any third Person; provided, that such
license will terminate on the Termination Date.

 

10.5         
Terminations; Amendments Not Authorized. Each Corporate Credit Party executing this Agreement acknowledges that it
is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement
without the prior written consent of Lender and agrees that it will not do so without the prior written consent of Lender, subject
to Borrower’s rights under Section 9-509(d)(2) of the UCC.

 

10.6         
Inspections. At all times during normal business hours and absent the occurrence of a Default or an Event of Default
upon reasonable notice to Borrowing Representative, Lender shall have the right to (a) have access to, visit, inspect, review,
evaluate and make physical verification and appraisals of each Borrower’s properties and the Collateral, (b) inspect, examine
and copy (or take originals if necessary) and make extracts from such Borrower’s Books and Records, including management
letters prepared by independent accountants, and (c) discuss with each Borrower’s principal officers, and independent accountants,
each Borrower’s business, assets, liabilities, financial condition, results of operations and business prospects. Each Borrower
will deliver to Lender any instrument necessary for Lender to obtain records from any service bureau maintaining records for such
Borrower.

 

10.7         
Inapplicability. The provisions of this Article (except Sections 10.5 and 10.6) do not apply to (a)
Digirad Corporation, Lone Star Value Management, LLC or Lone Star Value Co-Invest I, LP, and (b) Jeffrey E. Eberwein, except to
the extent otherwise provided in the Guaranty.

 

		XI.	TERM

 

11.1         
Term of Agreement. Any obligation of Lender to make Loans and extend their financial accommodations under this Agreement
or any Credit Document shall continue in full force and effect until the expiration of the Term. The termination of the Agreement
shall not affect any of Lender’s rights hereunder or any Credit Document and the provisions hereof and thereof shall continue
to be fully operative until all transactions entered into, rights or interests created and the Obligations have been disposed of,
concluded or liquidated. Notwithstanding the foregoing, Lender shall release its security interests at any time after thirty (30)
days notice upon payment to it of all Obligations if each Credit Party shall have (i) provided Lender with an executed release
of any and all claims which Credit Parties may have or thereafter have under this Agreement and/or any Credit Document and (ii)
paid to Lender an amount equal to (A) the monthly interest on the Minimum Average Monthly Loan Amount calculated based on the interest
rate in effect on the date of such payment multiplied by (B) the difference between (I) the number of full months from the Closing
Date until the Maturity Date and (II) the number of full months which have elapsed from the Closing Date until the payment of the
fee hereunder. In addition, Borrower shall pay to Lender the Collateral Monitoring Fee for each month from the date of repayment
until the Maturity Date. These fees shall also be due and payable to Lender upon termination of this Agreement by Lender after
the occurrence of an Event of Default.

 

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11.2         
[Intentionally Omitted]

 

11.3         
Termination of Lien. The Liens and rights granted to Lender hereunder and any Credit Documents and the financing
statements filed in connection herewith or therewith shall continue in full force and effect, notwithstanding the termination of
this Agreement or the fact that Borrowers’ account may from time to time be temporarily in a zero or credit position, until
(a) all of the Obligations have been paid or performed in full after the termination of this Agreement or each Credit Party has
furnished Lender with an indemnification satisfactory to Lender with respect thereto and (b) each Credit Party has an executed
release of any and all claims which such Credit Party may have or thereafter have under this Agreement or any other Credit Document.
Accordingly, each Credit Party waives any rights which it may have under the UCC to demand the filing of termination statements
with respect to the Collateral, and Lender shall not be required to send such termination statements to any Credit Party, or to
file them with any filing office, unless and until this Agreement and the Credit Documents shall have been terminated in accordance
with their terms and all Obligations paid in full in immediately available funds.

 

		XII.	EVENTS OF DEFAULT

 

12.1         
Events of Default. If any one or more of the following events (each, an “Event of Default”) shall
occur and be continuing:

 

(a)              
any Borrower shall fail to pay the principal of or interest on any Loan or any fees or other Obligations when and as the
same shall become due and payable (whether at maturity, by acceleration or otherwise); or

 

(b)              
any representation or warranty made or deemed made in or in connection with this Agreement or any other Credit Document
or as an inducement to enter into this Agreement or any other Credit Document or any representation, warranty, statement or information
contained in any report, certificate, financial statement or other instrument or agreement furnished in connection with or pursuant
to this Agreement or any other Credit Document shall prove to have been false or misleading in any material respect when made,
deemed to be made or furnished; or

 

(c)              
(i) Borrower or any other Corporate Credit Party shall fail or neglect to perform, keep or observe any of the covenants,
promises, agreements, requirements, conditions or other terms or provisions contained in Article II, Sections 7.1,
7.3, 7.16, 7.17, 7.18, 7.19, 8.2 and Article IX of this Agreement; or (ii) Borrower
or any other Credit Party shall fail or neglect to perform, keep or observe any of the other covenants, promises, agreements, requirements,
conditions or other terms or provisions contained in this Agreement (other than those set forth in the Sections referred to in
clause (i) immediately above) or any of the other Loan Documents, regardless of whether such breach involves a covenant, promise,
agreement, condition, requirement, term or provision with respect to a Credit Party that has not signed this Agreement, and such
breach is not remediable or, if remediable, continues unremedied for a period of five (5) Business Days after the earlier to occur
of (x) the date on which such breach is known or reasonably should have become known to any officer of any Borrower or such Credit
Party and (y) the date on which Lender shall have notified any Borrower or such other Credit Party of such breach; or

 

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(d)              
this Agreement or any other Credit Document shall not be for any reason, or shall be asserted by any Credit Party not to
be, in full force and effect in all material respects in accordance with its terms or the Lien granted or intended to be granted
to Lender pursuant to this Agreement or any other Credit Document shall cease to be a valid and perfected Lien having the first
priority (or a lesser priority if expressly permitted in this Agreement or another Credit Document); or

 

(e)              
any judgment shall be rendered against any Credit Party or there shall be any attachment or execution against any of the
assets or properties of any Credit Party, and such judgment, attachment or execution remains unpaid, unstayed or undismissed for
a period of fourteen (14) days from the date of such judgment; or

 

(f)               
any Credit Party shall be dissolved or shall generally not pay, or shall be generally unable to pay its debts as such debts
become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit
of creditors; or any proceeding shall be instituted or a petition shall be filed by or against any Credit Party seeking to adjudicate
it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or
composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking
the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property; or any Credit Party shall take any action to authorize any of the actions set forth above in
this clause (f); or

 

(g)              
any Credit Party shall (i) fail to pay any principal or interest, regardless of amount, due in respect of Indebtedness when
and as the same shall become due and payable or (ii) fail to observe or perform any other term, covenant, condition or agreement
contained in any agreements or instruments evidencing or governing any Indebtedness if the effect of any failure referred to in
this clause (ii) is to cause, or to permit the holder or holders of such indebtedness or a trustee on its or their behalf to cause,
such indebtedness to become due prior to its stated maturity; or

 

(h)              
the occurrence of a Change of Control in or with respect to any Corporate Credit Party; or

 

(i)                
there shall be commenced against any Credit Party any Litigation seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of its assets which results in the entry of an order for any such
relief which remains unstayed or undismissed for thirty (30) consecutive days; or any Credit Party shall have concealed, removed
or permitted to be concealed or removed, any part of its property with intent to hinder, delay or defraud any of its creditors
or made or suffered a transfer of any of its property or the incurring of an obligation which may be fraudulent under any bankruptcy,
fraudulent transfer or other similar law; or

 

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(j)                
any other event shall have occurred which has had or could reasonably be expected to have a Material Adverse Effect; or

 

(k)              
an ERISA Event shall have occurred that, in the opinion of the Lender, when taken together with all other ERISA Events that
have occurred and are then continuing, could reasonably be expected to result in liability of any Credit Party in an aggregate
amount exceeding the Minimum Actionable Amount; the indictment or threatened indictment of any Corporate Credit Party, any officer
of any Corporate Credit Party or any Guarantor under any criminal statute, or commencement or threatened commencement of criminal
or civil proceeding against any Corporate Credit Party, any officer of any Corporate Credit Party or any Guarantor pursuant to
which statute or proceeding penalties or remedies sought or available include forfeiture of any of the property of any Corporate
Credit Party; or

 

(l)                
any Credit Party shall take or participate in any action which would be prohibited under the provisions of any Subordination
Agreement or Intercreditor Agreement, or make any payment on the Subordinated Debt that any Person was not entitled to receive
under the provisions of the applicable Subordination Agreement or Intercreditor Agreement or an Event of Default shall have occurred
as defined under any Subordinated Debt; or

 

(m)            
the Life Insurance Policy shall be terminated, by any Credit Party or otherwise; or the Life Insurance Policy shall be scheduled
to terminate within thirty (30) days and such Credit Party shall not have delivered a satisfactory renewal thereof to Lender; or
any Credit Party shall fail to pay any premium on the Life Insurance Policy when due; or shall take any other action that impairs
the value of the Life Insurance Policy; or

 

(n)              
an Event of Default shall have occurred as defined under any of the other Obligations; or

 

(o)              
if the EBGL Credit Facility and the Credit Documents relating thereto have not been executed and delivered by the Credit
Parties to Lender in form and substance satisfactory to Lender by January 31, 2020;

 

then, and in any such event and at any
time thereafter, if such or any other Event of Default shall then be continuing, Lender in its sole discretion may declare any
or all of the Obligations to be due and payable, and the same shall immediately become due and payable without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived; provided, however, that if there shall occur
an Event of Default under paragraph (f) above, then any and all of the Obligations shall be immediately due and payable without
any necessary action or notice by Lender.

 

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12.2         
Lender Remedies.

 

(a)              
In addition to the rights and remedies set forth in Section 12.1, if any Event of Default shall have occurred and
be continuing, Lender may, without notice, take any one or more of the following actions: exercise any rights and remedies provided
to Lender under the Credit Documents or at law or equity, including all remedies provided under the UCC.

 

(b)              
Without limiting the generality of the foregoing, each Corporate Credit Party expressly agrees that upon the occurrence
of any Event of Default, Lender may take any action necessary to collect, receive, assemble, process, appropriate and realize upon
the Collateral, or any part thereof, or appoint a third party to do so and may forthwith sell, lease, assign, give an option or
options to purchase or otherwise dispose of and deliver said Collateral (or contract to do so), or any part thereof, in one or
more parcels at public or private sale or sales, at any exchange at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk. Lender shall have the right upon any such public sale, to the extent permitted
by law, to purchase for the benefit of Lender the whole or any part of said Collateral so sold, free of any right of equity of
redemption, which right each Credit Party hereby releases. Such sales may be adjourned or continued from time to time with or without
notice. Lender shall have the right to conduct such sales on any Corporate Credit Party’s premises or elsewhere and shall
have the right to use any Corporate Credit Party’s premises without rent or other charge for such sales or other action with
respect to the Collateral for such time as Lender deems necessary or advisable.

 

(c)              
Upon the occurrence and during the continuance of an Event of Default and at Lender’s request, each Credit Party further
agrees to assemble the Collateral and make it available to Lender at places which Lender shall reasonably select, whether at its
premises or elsewhere. Until Lender is able to effect a sale, lease, or other disposition of the Collateral, Lender shall have
the right to complete, assemble, use or operate the Collateral or any part thereof, to the extent that Lender deems appropriate,
for the purpose of preserving such Collateral or its value or for any other purpose. Lender shall have no obligation to any Credit
Party to maintain or preserve the rights of any Credit Party as against third parties with respect to any Collateral while such
Collateral is in the possession of Lender. Lender may, if it so elects, seek the appointment of a receiver or keeper to take possession
of any Collateral and to enforce any of Lender’s remedies with respect thereto without prior notice or hearing. To the maximum
extent permitted by applicable law, each Credit Party waives all claims, damages, and demands against Lender, its Affiliates, agents,
and the officers and employees of any of them arising out of the repossession, retention or sale of any Collateral except such
as are determined in a final judgment by a court of competent jurisdiction to have arisen solely out of the gross negligence or
willful misconduct of such Person. Each Credit Party agrees that ten (10) days prior notice by Lender to each Credit Party of the
time and place of any public sale or of the time after which a private sale may take place is reasonable notification of such matters.
Each Credit Party shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient
to pay all amounts to which Lender is entitled.

 

(d)              
Lender’s rights and remedies under this Agreement shall be cumulative and nonexclusive of any other rights and remedies
which Lender may have under any other Credit Document or at law or in equity or as provided under any Obligation. Recourse to the
Collateral shall not be required. All provisions of this Agreement are intended to be subject to all applicable mandatory provisions
of law that may be controlling and to be limited, to the extent necessary, so that they do not render this Agreement invalid or
unenforceable, in whole or in part.

 

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12.3         
Waivers. Except as otherwise provided for in this Agreement and to the fullest extent permitted by applicable law,
each Credit Party waives: (a) presentment, demand and protest, and notice of presentment, dishonor, intent to accelerate, acceleration,
protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all Credit Documents, the
Notes or any other notes, commercial paper, Accounts, Contracts, Documents, Instruments, Chattel Paper and guaranties at any time
held by Lender on which any Credit Party may in any way be liable, and hereby ratifies and confirms whatever Lender may do in this
regard; (b) all rights to notice and a hearing prior to Lender’s taking possession or control of, or to Lender’s replevy,
attachment or levy upon, any Collateral or any bond or security which might be required by any court prior to allowing Lender to
exercise any of its remedies; and (c) the benefit of all valuation, appraisal and exemption laws. Each Credit Party acknowledges
that it has been advised by counsel of its choices and decisions with respect to this Agreement, the other Credit Documents and
the transactions evidenced hereby and thereby.

 

12.4         
Proceeds. The Proceeds of any sale, disposition or other realization upon any Collateral shall be applied by Lender
upon receipt to the Obligations in such order as Lender may deem advisable in its sole discretion (including the cash collateralization
of any Letter of Credit Obligations), and after the indefeasible payment and satisfaction in full in cash of all of the Obligations,
and after the payment by Lender of any other amount required by any provision of law, including the UCC (but only after Lender
has received what Lender considers reasonable proof of a subordinate party’s security interest), the surplus, if any, shall
be paid to Borrowers or their representatives or to whomsoever may be lawfully entitled to receive the same, or as a court of competent
jurisdiction may direct.

 

		XIII.	MISCELLANEOUS

 

13.1         
No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of Lender, any right,
remedy, power or privilege under this Agreement or any other Credit Documents shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder or thereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. No notice to or demand on any Credit Party in any case
shall, of itself, entitle it to any other or further notice or demand in similar or other circumstances. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by law.

 

13.2         
Amendments and Waivers. No amendment, modification or waiver of or with respect to any provision of this Agreement
or any other Credit Document shall in any event be effective unless it shall be in writing and signed by Lender and each Credit
Party, and then such amendment, modification, waiver or consent shall be effective only in the specific instance and for the purpose
for which given.

 

    38

    

    

 

13.3         
Expenses; Indemnity.

 

(a)              
Each Credit Party agrees to, jointly and severally, pay or reimburse Lender for all costs and expenses (including, without
limitation, the fees and expenses of all counsel, advisors, consultants and auditors) incurred by Lender in connection with: (i)
the preparation, negotiation, execution, delivery, performance and enforcement of this Agreement and the other Credit Documents,
any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated shall
be consummated); (ii) the enforcement or protection of Lender’s rights in connection with this Agreement and the other Credit
Documents or in connection with the Loans; (iii) any advice in connection with the administration of the Loans or the rights under
this Agreement or the other Credit Documents; (iv) any litigation, dispute, suit, proceeding or action (whether instituted by or
between any combination of Lender, any Credit Party or any other Person), and an appeal or review thereof, in any way relating
to the Collateral, this Agreement, any other Credit Document, or any action taken or any other agreements to be executed or delivered
in connection therewith, whether as a party, witness or otherwise; and (v) any effort (x) to monitor the Loans, (y) to evaluate,
observe or assess any Borrower or any other Credit Party or the affairs of such Person, and (z) to verify, protect, evaluate, assess,
appraise, collect, sell, liquidate or otherwise dispose of the Collateral. In addition to the foregoing, each Credit Party agrees
to pay Lender a fee of $1,000 for each amendment, modification, supplement or restatement of any Credit Document entered into by
Lender and any Borrower. Each Corporate Credit Party further agrees, jointly and severally, to indemnify Lender from and agrees
to hold it harmless against any documentary taxes, assessments or charges made by any governmental authority by reason of the execution
and delivery of this Agreement or any of the other Credit Documents.

 

(b)              
Each Corporate Credit Party agrees to, jointly and severally, indemnify Lender, its correspondents and each of its respective
directors, shareholders, officers, employees and agents (each, an “Indemnified Person”) against, and agrees
to hold each Indemnified Person harmless from, any and all losses, claims, damages, liabilities and related expenses, including
reasonable counsel fees, charges and disbursements, incurred by or asserted against any Indemnified Person arising out of, in any
way connected with or as a result of (i) the use of any of the proceeds of any Loan or the use of any Loan, (ii) the goods or transactions
financed by the Loans, (iii) this Agreement, any other Credit Document or any other document contemplated hereby or thereby, the
performance by the parties hereto or thereto of their respective obligations hereunder and thereunder or the consummation of the
transactions contemplated hereby and thereby, or (iv) any claim, litigation, investigation or proceedings relating to any of the
foregoing, whether or not any Indemnified Person Indemnity is a party thereto; provided, however, that such indemnity
shall not, as to any Indemnified Person, apply to any such losses, claims, damages, liabilities or related expenses to the extent
that they result from the gross negligence or willful misconduct of Lender.

 

(c)              
The provisions of this Section 13.3 shall remain operative and in full force and effect regardless of the expiration
of the term of this Agreement and the repayment of the Loans. All amounts due under this Section 13.3 shall be payable on
written demand therefor.

 

13.4         
Borrowing Agency Provisions. If and to the extent that at any time or from time to time there are multiple Borrowers,
then.

 

    39

    

    

 

(a)              
Each Borrower acknowledges that, together with each other Borrower, it is part of an affiliated common enterprise in which
any loans or other financial accommodations extended to any one Borrower will result in direct and substantial economic benefit
to each other Borrower, and each Borrower will likewise benefit from the economies of scale associated with the Borrowers, as a
group, applying for credit or other financial accommodations on a collective basis.

 

(b)              
Each Borrower hereby irrevocably designates Borrowing Representative to be its attorney and agent and, in such capacity,
to borrow, sign and endorse notes, and execute and deliver all instruments, documents, writings and further assurances now or hereafter
required hereunder, on behalf of such Borrower or Borrowers, and hereby authorizes Lender to pay over or credit all loan proceeds
hereunder in accordance with the request of Borrowing Representative.

 

(c)              
The handling of this credit facility as a co-borrowing facility with a Borrowing Representative in the manner set forth
in this Agreement is solely as an accommodation to Borrowers and at their request. Lender shall not incur liability to Borrowers
as a result thereof. To induce Lender to do so and in consideration thereof, each Borrower, jointly and severally, hereby indemnifies
Lender and holds Lender harmless from and against any and all liabilities, expenses, losses, damages and claims of damage or injury
asserted against Lender or any issuer by any Person arising from or incurred by reason of the handling of the financing arrangements
of Borrowers as provided herein, reliance by Lender on any request or instruction from Borrowing Representative or any other action
taken by Lender with respect to this Section except due to willful misconduct or gross negligence by the indemnified party.

 

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

 

13.5         
Guaranty. Each Corporate Credit Party hereby absolutely, unconditionally and jointly and severally guarantees to
Lender and its successors and assigns the full and prompt payment (whether at stated maturity, by acceleration or otherwise) and
performance of all Obligations owed or hereafter owing to Lender by each Corporate Credit Party. Each Corporate Credit Party agrees
that its guaranty obligation hereunder is a joint and several continuing guaranty of payment and performance and not of collection,
and that its obligations shall be absolute and unconditional, irrespective of, and unaffected by:

 

(a)              
the genuineness, validity, regularity, enforceability or any future amendment of, or change in, this Agreement, any other
Credit Documents;

 

    40

    

    

 

(b)              
the absence of any action to enforce this Agreement (including this Section 13.5) or any other Credit Document or
the waiver or consent by Lender with respect to any of the provisions hereof or thereof;

 

(c)              
the existence, value or condition of, or failure to perfect its Lien against, any security for the Obligations or any action,
or the absence of any action, by Lender in respect thereof (including the release of any such security);

 

(d)              
the insolvency of any Credit Party; or

 

(e)              
any other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety
or guarantor,

 

it being agreed by each Credit Party that its obligations shall
not be discharged until the payment and performance, in full, of the Obligations has occurred. Each Credit Party shall be regarded,
and shall be in the same position, as principal debtor with respect to the Obligations guaranteed hereunder.

 

13.6         
Waivers. Each Corporate Credit Party expressly waives all rights it may have now or in the future under any statute,
or at common law, or at law or in equity, or otherwise, to compel Lender to marshal assets or to proceed in respect of the Obligations
guaranteed hereunder against any other Corporate Credit Party, any other party or against any security for the payment and performance
of the Obligations before proceeding against, or as a condition to proceeding against, such Credit Party. It is agreed among each
Credit Party and Lender that the foregoing waivers are of the essence of the transactions contemplated by this Agreement and the
other Credit Documents and that, but for the provisions of this Section 13.6 and such waivers, Lender would decline to enter
into this Agreement.

 

13.7         
Benefit of Guaranty. Each Credit Party agrees that the provisions of Section 13.5 are for the benefit of Lender
and its successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between any other Credit
Party and Lender, the obligations of such other Credit Party under this Agreement or the other Credit Documents.

 

13.8         
Subordination of Subrogation. Notwithstanding anything to the contrary in this Agreement or in any other Credit Documents,
each Credit Party hereby expressly and irrevocably subordinates to payment of the Obligations any and all rights at law or in equity
to subrogation, reimbursement, exoneration, contribution, indemnification or set off and any and all defenses available to a surety,
guarantor or accommodation co-obligor until the Obligations are indefeasibly paid in full in cash. Each Credit Party acknowledges
and agrees that this waiver is intended to benefit Lender and shall not limit or otherwise affect such Credit Party’s liability
hereunder or the enforceability of Section 13.5.

 

13.9         
Election of Remedies. If Lender may, under applicable law, proceed to realize its benefits under this Agreement or
any other Credit Document giving Lender a Lien upon any Collateral, whether owned by any Borrower or by any other Person, either
by judicial foreclosure or by non-judicial sale or enforcement, Lender may, at its sole option, determine which of its remedies
or rights it may pursue without affecting any of its rights and remedies under Section 13.5. If, in the exercise of any
of its rights and remedies, Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency judgment
against any Credit Party or any other Person, whether because of any applicable laws pertaining to “election of remedies”
or the like, each Credit Party hereby consents to such action by Lender and waives any claim based upon such action, even if such
action by Lender shall result in a full or partial loss of any rights of subrogation which such Credit Party might otherwise have
had but for such action by Lender. Any election of remedies that results in the denial or impairment of the right of Lender to
seek a deficiency judgment against any Credit Party shall not impair any other Credit Party’s obligation to pay the full
amount of the Obligations. In the event Lender shall bid at any foreclosure or trustee’s sale or at any private sale permitted
by law, this Agreement or any other Credit Document, Lender may bid all or less than the amount of the Obligations and the amount
of such bid need not be paid by Lender but may be credited against the Obligations. The amount of the successful bid at any such
sale, whether Lender or any other party is the successful bidder, shall be conclusively deemed to be the fair market value of the
Collateral and the difference between such bid amount and the remaining balance of the Obligations shall be conclusively deemed
to be the amount of the Obligations guaranteed under Section 13.5 notwithstanding that any present or future law or court
decision or ruling may have the effect of reducing the amount of any deficiency claim to which Lender might otherwise be entitled
but for such bidding at any such sale.

 

    41

    

    

 

13.10     
Liability Cumulative. The liability of Credit Parties under Section 13.5 is in addition to and shall be cumulative
with all liabilities of each Credit Party to Lender under this Agreement and the other Credit Documents or in respect of any Obligations
or obligation of the other Credit Parties, without any limitation as to amount, unless the instrument or agreement evidencing or
creating such other liability specifically provides to the contrary.

 

13.11     
Waiver of Subrogation. Each Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity,
exoneration, contribution of any other claim which such Borrower may now or hereafter have against the other Borrowers or other
Person directly or contingently liable for the Obligations hereunder, or against or with respect to the other Borrowers’
property (including, without limitation, any property which is Collateral for the Obligations), arising from the existence or performance
of this Agreement, until termination of this Agreement and repayment in full of the Obligations.

 

13.12     
Further Assurances. Each Credit Party will take, or cause to be taken, all such further actions and execute, or cause
to be executed, all such further documents and instruments as Lender may at any time reasonably request or determine to be necessary
or advisable to further carry out and consummate the transactions contemplated by this Agreement and the other Credit Documents.

 

13.13     
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each Credit Party and its
successors and to the benefit of Lender and its successors and assigns. The rights and obligations of each Credit Party under this
Agreement shall not be assigned or delegated without the prior written consent of Lender, and any purported assignment or delegation
without such consent shall be null and void. Lender reserves the right at any time to create and sell participations in the Loans
and the Credit Documents and to sell, transfer or assign any or all of its rights in the Loans and under the Credit Documents.

 

    42

    

    

 

13.14     
Descriptive Headings. The descriptive headings of the various provisions of this Agreement are inserted for convenience
of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

 

13.15     
Rules of Construction. For purposes of this Agreement and the other Credit Documents, the following additional rules
of construction shall apply, unless specifically indicated to the contrary: (a) wherever from the context it appears appropriate,
each term stated in either the singular or plural shall include the singular and the plural; (b) all references to statutes
and related regulations shall include any amendments of same and any successor statutes and regulations; and (c) all references
to any instruments or agreements, including references to any of the Credit Documents, shall include any and all modifications
or amendments thereto and any and all extensions or renewals thereof. The words “including”, “includes”
and “include” shall be deemed to be followed by the words “without limitation” the word “or”
is not exclusive; references to Persons include their respective successors and assigns (to the extent and only to the extent permitted
by the Credit Documents) or, in the case of governmental Persons, Persons succeeding to the relevant functions of such Persons;
and all references to statues and related regulations shall include any amendments of the same and any successor statutes and regulations.

 

13.16     
Notices. Except as otherwise provided herein, whenever any notice, demand, request or other communication shall or
may be given to or served upon any party by any other party, or whenever any party desires to give or serve upon any other party
any communication with respect to this Agreement, each such communication shall be in writing and shall be deemed to have been
validly served, given or delivered (a) upon the earlier of actual receipt and three (3) days after deposit in the United States
Mail, registered or certified mail, return receipt requested, with proper postage prepaid, (b) upon transmission, when sent by
telecopy or other similar facsimile transmission (with such telecopy or facsimile promptly confirmed by delivery of a copy by personal
delivery or United States Mail as otherwise provided in this Section 13.16, (c) one (1) Business Day after deposit with a reputable
overnight courier with all charges prepaid or (d) when hand-delivered, all of which shall be addressed to the party to be notified
and sent to the address or facsimile number indicated in Schedule V or to such other address (or facsimile number) as may
be substituted by notice given as herein provided. Failure or delay in delivering copies of any such communication to any Person
(other than Borrowing Representative or Lender) designated in Schedule V to receive copies shall in no way adversely affect
the effectiveness of communication.

 

13.17     
Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

13.18     
Entire Agreement; Counterparts. This Agreement and the other Credit Documents represent the agreement of Credit Parties
and Lender with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by
any Borrower or Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Credit
Documents. Nothing in this Agreement or in the other Credit Documents, express or implied, is intended to confer upon any party,
other than the parties hereto and thereto, any rights, remedies, obligations or liabilities under or by reason of this Agreement
or the other Credit Documents. This Agreement may be signed in any number of counterparts with the same effect as if the signatures
thereto and hereto were upon the same instrument. Any signature delivered by a party via facsimile or electronic transmission shall
be deemed to be an original signature hereto.

 

    43

    

    

 

13.19     
SUBMISSION TO JURISDICTION. EACH CREDIT PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY: (a) SUBMITS FOR ITSELF AND
ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING, DIRECTLY OR INDIRECTLY, RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
TO WHICH IT IS A PARTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK; (b) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES ANY OBJECTION THAT IT MAY
NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT
IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; (c) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING
MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE
PREPAID, TO IT AT ITS ADDRESS SET FORTH IN SCHEDULE V TO THIS AGREEMENT OR AT SUCH OTHER ADDRESS OF WHICH LENDER SHALL HAVE BEEN
NOTIFIED PURSUANT TO SECTION 13.16; AND (d) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

 

13.20     
WAIVER OF TRIAL BY JURY, CERTAIN DAMAGES AND SETOFFS. IN ANY LEGAL ACTION OR PROCEEDING, DIRECTLY OR INDIRECTLY,
RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR ANY DOCUMENT, INSTRUMENT OR AGREEMENT DELIVERED PURSUANT HERETO OR THERETO,
(A) EACH OF EACH CREDIT PARTY AND LENDER HEREBY, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, IRREVOCABLY AND UNCONDITIONALLY
WAIVES THE RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUCH LEGAL ACTION OR PROCEEDING, (B) EACH OF EACH CREDIT PARTY AND LENDER
HEREBY, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR
RECOVER IN ANY SUCH LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN,
ACTUAL DAMAGES AND (C) EACH CREDIT PARTY HEREBY, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, IRREVOCABLY AND UNCONDITIONALLY
WAIVES THE RIGHT TO INTERPOSE ANY NON-COMPULSORY SETOFF, RECOUPMENT, COUNTERCLAIM OR CROSS-CLAIM IN CONNECTION WITH ANY SUCH LEGAL
ACTION OR PROCEEDING. EACH BORROWER AGREES THAT THIS SECTION 13.20 IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND ACKNOWLEDGES
THAT LENDER WOULD NOT EXTEND TO ANY BORROWER ANY LOANS HEREUNDER IF THIS SECTION 13.20 WERE NOT PART OF THIS AGREEMENT.

 

    44

    

    

 

13.21     
GOVERNING LAW. THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS (OTHER THAN THE MORTGAGE) AND THE OBLIGATIONS
ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.
ANY MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE IN WHICH THE MORTGAGED
PROPERTY IS LOCATED.

 

13.22     
Reinstatement. This Agreement shall continue to be effective, or be reinstated, as the case may be, if at any time
payment of all or any part of the Obligations is rescinded or must otherwise be returned or restored by Lender upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of any Credit Party, or otherwise, all as though such payments had not been
made.

 

[Signature Page Follows]

 

    45

    

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed as of the day and year first above written.

 

	 	STAR REAL ESTATE HOLDINGS USA, INC.
	 	 
	 	By:	
/s/ David J. Noble
	 	 	Name: 	David J. Noble
	 	 	Title:	President and Chief Executive Officer

 

	 	300 PARK STREET, LLC
	 	 
	 	By:	
/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President and Chief Executive Officer

 

	 	947 WATERFORD ROAD, LLC
	 	 
	 	By:	
/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President and Chief Executive Officer

 

	 	56 MECHANIC FALLS ROAD, LLC
	 	 
	 	By:	
/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President and Chief Executive Officer

 

[Borrowers’ signatures to Loan Agreement]

 

    

    

    

 

	 	ATRM HOLDINGS, INC.
	 	 
	 	By:	
/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President

 

	 	EDGEBUILDER, INC.
	 	 
	 	By:	
/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	Vice President

 

	 	GLENBROOK BUILDING SUPPLY, INC.
	 	 
	 	By:	
/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	Vice President 

	 	 	 	 
	 	KBS BUILDERS, INC.
	 	 	 	 
	 	By:	/s/ Matthew
Mosher
	 	 	Name:	Matthew
Mosher
	 	 	Title:	General
Manager

 

	 	DIGIRAD CORPORATION
	 	 
	 	By:	
/s/ Matthew G. Molchan
	 	 	Name:	Matthew G. Molchan
	 	 	Title:	President and Chief Executive Officer

 

[Corporate Credit Parties’ signatures to Loan
Agreement

 

    

    

    

 

	 	GERBER FINANCE INC.
	 	 
	 	By:	
/s/ Jennifer Palmer
	 	 	Name:  	Jennifer Palmer
	 	 	Title:	Chief Executive Officer

 

[Lender’s signature to Loan Agreement]

 

    

    

    

 

SCHEDULE I

 

[INTENTIONALLY OMITTED]

 

    

    

    

 

ATTACHMENT A

 

[INTENTIONALLY OMITTED]

 

    

    

    

 

SCHEDULE II

 

CONDITIONS PRECEDENT

 

The following items
must be received by Lender in form and substance satisfactory to Lender on or prior to the date of the initial Loan Lender:

 

1.                 
this Agreement duly executed by each Credit Party;

 

2.                 
the Note duly executed by each Borrower;

 

3.                 
a Guaranty, duly executed by each of the following Persons:

 

     Jeffrey E. Eberwein

 

4.                 
acknowledgement copies of proper financing statements (Form UCC-l) duly filed under the UCC in all jurisdictions as may
be necessary or, in the opinion of Lender, desirable to perfect Lender’s Lien on the Collateral;

 

5.                 
certified copies of UCC, tax lien and judgment searches, or other evidence satisfactory to Lender, listing all effective
financing statements which name each Credit Party (under present name, any previous name or any trade or doing business name) as
debtor and covering all jurisdictions requested by Lender, together with copies of such other financing statements;

 

6.                 
duly executed Intellectual Property Security Agreement from each Credit Party which owns Intellectual Property;

 

7.                 
evidence of the completion of all other recordings and filings (including UCC-3 termination statements and other Lien release
documentation) as may be necessary or, in the opinion of and at the request of Lender, desirable to perfect Lender’s Lien
on the Collateral and ensure such Collateral is free and clear of other Liens;

 

8.                 
Powers of Attorney duly executed by each Corporate Credit Party other than Digirad Corporation;

 

9.                 
control letters from (i) all issuers of uncertificated securities and financial assets held by any Corporate Credit Party,
(ii) all securities intermediaries with respect to all securities accounts and securities entitlements of each Corporate Credit
Party, and (iii) all futures commission agents and clearing houses with respect to all commodities contracts and commodities accounts
held by Borrower;

 

10.             
[Intentionally omitted]

 

11.             
duly executed originals of a Request for Loan, dated the Closing Date, with respect to the Credit Advance to be requested
by Borrowing Representative on the Closing Date;

 

    

    

    

 

12.             
[Intentionally omitted];

 

13.             
for each Corporate Credit Party, such Person’s (a) charter and all amendments thereto, (b) good standing certificates
(including verification of tax status where available as part of a good standing certificate) in its state of incorporation and
(c) good standing certificates (including verification of tax status where available as part of a good standing certificate) and
certificates of qualification to conduct business in each jurisdiction where its ownership or lease of property or the conduct
of its business requires such qualification, each dated a recent date prior to the Closing Date and certified by the applicable
Secretary of State or other authorized Governmental Authority;

 

14.             
a certificate of an officer of each Corporate Credit Party in the form of Exhibit G together with copies of: (a)
such Person’s bylaws or operating agreement, together with all amendments thereto and (b) resolutions of such Person’s
Board of Directors, Members, Managers and stockholders, members, approving and authorizing the execution, delivery and performance
of the Credit Documents to which such Person is a party and the transactions to be consummated in connection therewith, each certified
as of the Closing Date by such Person’s corporate secretary or an assistant secretary as being in full force and effect without
any modification or amendment;

 

15.             
for each Corporate Credit Party, signature and incumbency certificates of the officers of each such Person executing any
of the Credit Documents, certified as of the Closing Date by such Person’s corporate secretary or an assistant secretary
as being true, accurate, correct and complete;

 

16.             
evidence satisfactory to Lender that, as of the Closing Date, Cash Management Systems complying with Schedule IV
the Agreement have been established and are currently being maintained in the manner set forth in such Schedule IV, together
with copies of a duly executed blocked account agreements, reasonably satisfactory to Lender, with the banks as required by Schedule
IV

 

17.             
[Intentionally omitted];

 

18.             
a letter from Digirad Corporation to its independent auditors in the form of Exhibit F authorizing the independent
certified public accountants of the Credit Parties to communicate with Lender;

 

19.             
duly executed originals of account debtor notification letters in the form of Exhibit H executed in blank by each
Corporate Credit Party other than Digirad Corporation;

 

20.             
unless otherwise agreed to in writing by lender, warehouse waivers, landlord waivers and consents, bailee letters and mortgagee
agreements of all Borrowers’ leased or owned locations where Collateral is held;

 

21.             
Mortgage covering all of the Real Estate (the “Mortgaged Properties”) together with: (a) title insurance
policies, current as-built surveys, zoning letters and certificates of occupancy; (b) evidence that counterparts of the mortgages
have been recorded in all places to the extent necessary or desirable, in the judgment of Lender, to create a valid and enforceable
first priority lien (subject to Permitted Liens) on each Mortgaged Property in favor of Lender (or in favor of such other trustee
as may be required or desired under local law); and (c) an opinion of counsel in each state in which any Mortgaged Property is
located;

 

    

    

    

 

22.             
any and all Subordination Agreement and/or intercreditor agreements as Lender shall have deemed necessary or appropriate
with respect to any Indebtedness of any Credit Party;

 

23.             
Phase I Environmental Site Assessment Reports, consistent with American Society of Testing and Materials (ASTM) Standard
E 1527-94, and applicable state requirements, on all of the Real Property, prepared by environmental engineers reasonably satisfactory
to Lender, all in form and substance reasonably satisfactory to Lender, in its sole discretion; and Lender shall have further received
such environmental review and audit reports, including Phase I reports, with respect to the Real Property of any Credit Party as
Lender shall have requested, and Lender shall be satisfied, in its sole discretion, with the contents of all such environmental
reports. Lender shall have received letters executed by the environmental firms preparing such environmental reports, in form and
substance reasonably satisfactory to Lender to rely on such reports;

 

24.             
Lender shall have received appraisals as to all Real Property owned by each Borrower, each of which shall be in form and
substance reasonably satisfactory to Lender;

 

25.             
the Financial Statements, Projections and other materials requested by Lender certified by each Borrower’s Chief Financial
Officer; and

 

26.             
such other certificates, documents and agreements respecting any Credit Party as Lender may, in its sole discretion, request.

 

    

    

    

 

SCHEDULE III

 

FINANCIAL COVENANTS

 

Debt Service Coverage Ratio: Borrowers
shall maintain at the end of each fiscal year a Debt Service Coverage Ratio of not less than 1:00 to 1:00. “Debt Service
Coverage Ratio” shall mean the ratio of earnings, plus interest expense, plus depreciation and amortization less distributions
permitted to interest expense plus the current maturity of long term debt determined in accordance with GAAP.

 

    

    

    

 

SCHEDULE IV

 

CASH MANAGEMENT

 

Each Borrower agrees to establish, and
to maintain, until the Termination Date, the cash management system described below:

 

1.                 
Commencing on the Closing Date and until the Termination Date, each Borrower will as required herein irrevocably direct
all present and future Account Debtors and other Persons obligated to make payments constituting Collateral to make such payments
directly to either the Collateral Account or to Borrower at 8 West 40th Street, 14th Floor, New York, New
York 10018. The Collateral Account will be subject to an agreement which will afford Lender exclusive control over the deposits
therein within the meaning of the UCC (“Account Control Agreement”). All of Borrower’s invoices, account statements
and other written or oral communications directing, instructing, demanding or requesting payment of any Account of Borrower or
any other amount constituting Collateral shall conspicuously direct that all payments be made to the Collateral Account or to Borrower
at 8 West 40th Street, 14th Floor, New York, New York 10018 and shall include the preceding address or the
address for the Collateral Account. If, notwithstanding the instructions to Account Debtors to make payments to the Collateral
Account or to Borrower at 8 West 40th Street, 14th Floor, New York, New York 10018, Borrower receives any
payments, Borrower shall immediately deposit such payments into the Collateral Account or immediately forward to Lender. Until
so deposited, Borrower shall hold all such payments in trust for and as the property of Lender and shall not commingle such payments
with any of its other funds or property. In the event that Borrowers do not comply with the conditions set forth herein, Lender
may charge to Borrowers’ account a fee equal to fifteen percent (15%) of each payment that violates this paragraph of this
Agreement.

 

2.                 
Each Borrower may maintain, in its name, accounts (the “Disbursement Accounts”) at a bank or banks acceptable
to Lender into which Lender shall, from time to time, deposit proceeds of Loans for use solely in accordance with the terms of
this Agreement. All of the Disbursement Accounts are listed on Disclosure Schedule 7.17.

 

    

    

    

 

SCHEDULE V

 

ADDRESSES FOR NOTICES

 

	Lender’s Address:
	 	 
	Name:	Gerber Finance Inc.
	Address:	8 West 40th Street, 14th Floor
	 	New York, New York 10018
	Attention:	Gerald L. Joseph
	Telephone:	(212) 888-3833
	Facsimile:	(212) 888-1637
	 	 
	Address for each Corporate Credit Party and Borrowing Representative:
	 
	Name:	[Corporate Credit Party] c/o Digirad Corporation
	Address:	53 Forest Avenue,
	 	Old Greenwich, CT 06870
	Attention:	Chief Financial Officer
	Telephone:	(203) 489-9502Execution version

 

LOAN AND SECURITY AGREEMENT

 

AMONG

 

GERBER FINANCE INC.

as Lender

 

and

EDGEBUILDER, INC., a Delaware corporation

and GLENBROOK BUILDING SUPPLY, INC.,
a Delaware corporation

as Borrowers

 

STAR REAL ESTATE HOLDINGS USA, INC.,
a Delaware corporation,

300 PARK STREET, LLC, a Delaware limited liability company,

947 WATERFORD ROAD, LLC, a Delaware limited liability company,

56 MECHANIC FALLS ROAD, LLC, a Delaware limited liability company,

ATRM HOLDINGS, INC., a Minnesota corporation,

KBS BUILDERS, INC., a Delaware corporation,

and DIGIRAD CORPORATION, a Delaware corporation

as Corporate Credit Parties

 

Dated: January 31, 2020

 

    

    

    

 

Table of Contents

 

Page

 

	I.	DEFINITIONS	1
	 	 	 
	 	1.1	General Definitions	1
	 	 	 	 
	 	1.2	Accounting Terms	17
	 	 	 	 
	 	1.3	Other Terms	17
	 	 	 	 
	 	1.4	Rules of Construction	18
	 	 	 	 
	II.	LOANS	18
	 	 	 
	 	2.1	Revolving Credit Advances	18
	 	 	 	 
	III.	REPAYMENT	19
	 	 	 
	 	3.1	Repayment of the Revolving Credit Advances	19
	 	 	 	 
	IV.	PROCEDURES	20
	 	 	 
	 	4.1	Procedure for Revolving Credit Advances	20
	 	 	 	 
	V.	INTEREST AND FEES	20
	 	 	 
	 	5.1	Interest and Fees	20
	 	 	 	 
	VI.	CONDITIONS PRECEDENT	22
	 	 	 
	 	6.1	Conditions Precedent to Initial Loans	22
	 	 	 	 
	 	6.2	Conditions Precedent to each Loan	22
	 	 	 	 
	VII.	REPRESENTATIONS, WARRANTIES AND COVENANTS	23
	 	 	 
	 	7.1	Corporate Existence; Compliance with Law	23
	 	 	 	 
	 	7.2	Names; Organizational Information; Collateral Locations	23
	 	 	 	 
	 	7.3	Power; Authorization; Enforceable Obligations	24
	 	 	 	 
	 	7.4	Financial Statements and Projections; Books and Records	24
	 	 	 	 
	 	7.5	Material Adverse Change	24
	 	 	 	 
	 	7.6	Real Estate; Property	25
	 	 	 	 
	 	7.7	Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness	25

 

    i

    

    

 

	 	7.8	Government Regulation; Margin Regulations	25
	 	 	 	 
	 	7.9	Taxes; Charges	25
	 	 	 	 
	 	7.10	Payment of Obligations	26
	 	 	 	 
	 	7.11	ERISA	26
	 	 	 	 
	 	7.12	Litigation	26
	 	 	 	 
	 	7.13	Intellectual Property	27
	 	 	 	 
	 	7.14	Full Disclosure	27
	 	 	 	 
	 	7.15	Hazardous Materials	27
	 	 	 	 
	 	7.16	Insurance	27
	 	 	 	 
	 	7.17	Deposit and Disbursement Accounts	28
	 	 	 	 
	 	7.18	Accounts	28
	 	 	 	 
	 	7.19	Conduct of Business	29
	 	 	 	 
	 	7.20	Further Assurances	29
	 	 	 	 
	VIII.	FINANCIAL REPORTS; FINANCIAL COVENANTS	29
	 	 	 
	 	8.1	Reports and Notices	29
	 	 	 	 
	 	8.2	Financial Covenants	30
	 	 	 	 
	 	8.3	Other Reports and Information	30
	 	 	 	 
	 	8.4	Good Standing Certificates	31
	 	 	 	 
	IX.	NEGATIVE COVENANTS	31
	 	 	 
	X.	SECURITY INTEREST	32
	 	 	 
	 	10.1	Grant of Security Interest	33
	 	 	 	 
	 	10.2	Lender’s Rights	35
	 	 	 	 
	 	10.3	Lender’s Appointment as Attorney-in-Fact	36
	 	 	 	 
	 	10.4	Grant of License to Use Intellectual Property Collateral	36
	 	 	 	 
	 	10.5	Terminations; Amendments Not Authorized	37

 

    ii

    

    

 

	 	10.6	Inspections	37
	 	 	 	 
	 	10.7	Inapplicability	37
	 	 	 	 
	XI.	TERM	37
	 	 	 
	 	11.1	Term of Agreement	37
	 	 	 	 
	 	11.2	[Intentionally Omitted]	38
	 	 	 	 
	 	11.3	Termination of Lien	38
	 	 	 	 
	XII.	EVENTS OF DEFAULT	38
	 	 	 
	 	12.1	Events of Default	38
	 	 	 	 
	 	12.2	Lender Remedies	40
	 	 	 	 
	 	12.3	Waivers	41
	 	 	 	 
	 	12.4	Proceeds	42
	 	 	 	 
	XIII.	MISCELLANEOUS	42
	 	 	 
	 	13.1	No Waiver; Cumulative Remedies	42
	 	 	 	 
	 	13.2	Amendments and Waivers	42
	 	 	 	 
	 	13.3	Expenses; Indemnity	42
	 	 	 	 
	 	13.4	Borrowing Agency Provisions.  	43
	 	 	 	 
	 	13.5	Guaranty	44
	 	 	 	 
	 	13.6	Waivers	45
	 	 	 	 
	 	13.7	Benefit of Guaranty	45
	 	 	 	 
	 	13.8	Subordination of Subrogation	45
	 	 	 	 
	 	13.9	Election of Remedies	45
	 	 	 	 
	 	13.10	Liability Cumulative	46
	 	 	 	 
	 	13.11	Waiver of Subrogation	46
	 	 	 	 
	 	13.12	Further Assurances	46
	 	 	 	 
	 	13.13	Successors and Assigns	46

 

    iii

    

    

 

	 	13.14	Descriptive Headings	46
	 	 	 	 
	 	13.15	Rules of Construction	46
	 	 	 	 
	 	13.16	Notices	47
	 	 	 	 
	 	13.17	Severability	47
	 	 	 	 
	 	13.18	Entire Agreement; Counterparts.  	47
	 	 	 	 
	 	13.19	SUBMISSION TO JURISDICTION.  	47
	 	 	 	 
	 	13.20	WAIVER OF TRIAL BY JURY, CERTAIN DAMAGES AND SETOFFS.  	48
	 	 	 	 
	 	13.21	GOVERNING LAW	48
	 	 	 	 
	 	13.22	Reinstatement	49

 

    iv

    

    

 

INDEX OF EXHIBITS AND SCHEDULES

 

	Schedule I	-	General Terms for Letter of Credit
	Schedule II	-	Conditions Precedent
	Schedule III	-	Financial Covenants
	Schedule IV	-	Cash Management
	Schedule V	-	Addresses for Notices
	Schedule VI	 	Borrowing Base Certificate Reporting
	 	 	 
	Attachment A	-	Fees, Charges and Commissions
	 	 	 
	Exhibit A	-	Form of Note
	Exhibit B	-	Form of Monthly Statement Report
	Exhibit C	-	Form of Borrowing Base Certificate
	Exhibit D	-	Form of Certificate of Compliance
	Exhibit E	-	Form of Power of Attorney
	Exhibit F	-	Form of Accountant’s Letter
	Exhibit G	-	Form of Officer’s Certificate
	Exhibit H	-	Form of Account Debtor Notification Letter
	Exhibit I	-	Form of Intellectual Property Security Agreement

 

	Disclosure Schedule 7.2	-	Perfection Certificate
	Disclosure Schedule 7.6	-	Real Estate
	Disclosure Schedule 7.7	-	Ventures, Subsidiaries and Affiliates
	Disclosure Schedule 7.9	-	Taxes
	Disclosure Schedule 7.12	-	Litigation
	Disclosure Schedule 7.13	-	Intellectual Property
	Disclosure Schedule 7.15	-	Environmental Matters
	Disclosure Schedule 7.16	-	Insurance
	Disclosure Schedule 7.17	-	Deposit and Disbursement Accounts
	Disclosure Schedule 9(b)	-	Indebtedness
	Disclosure Schedule 9(e)	-	Permitted Liens

 

    v

    

    

 

LOAN AND SECURITY AGREEMENT

 

This Loan and Security
Agreement is made as of January 31, 2020 by and among GERBER FINANCE INC., a New York corporation (“Lender”)
EdgeBuilder, Inc., a Delaware Corporation and Glenbrook Building Supply, Inc., a Delaware corporation (individually, “Initial
Borrower”) and, collectively, if more than one, the “Initial Borrowers”), and together with each other
Person which, on or subsequent to the Closing Date, agrees in writing to become a “Borrower” hereunder, herein called,
individually, a “Borrower” and, collectively, the “Borrowers,” and pending the inclusion
by written agreement of any other such Person, besides each Initial Borrower, as a “Borrower” hereunder, all references
herein to “Borrowers,” “each Borrower,” the “applicable Borrower,” “such Borrower”
or any similar variations thereof (whether singular or plural) shall all mean and refer to the Initial Borrower or each one of
them collectively) and any other Credit Party executing or becoming a party to this Agreement.

 

BACKGROUND

 

Borrowers have requested
that Lender make loans and advances available to Borrowers; and

 

Lender has agreed to
make such loans and advances to Borrowers on the terms and conditions set forth in this Agreement and any amendment thereto.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises and the mutual covenants and undertakings and terms and conditions contained herein, the parties
hereto agree as follows:

 

		I.	DEFINITIONS

 

1.1                   
General Definitions. When used in this Agreement, the following terms shall have the following meanings:“Account
Control Agreement” has the meaning set forth in Schedule IV.

 

“Account Debtor”
means any Person who is or may become obligated with respect to, or on account of, an Account, Chattel Paper or General Intangibles
(including a Payment Intangible).

 

“Accounts”
means all “accounts”, as such term is defined in the UCC, now owned or hereafter acquired by any Person.

 

“Accounts Availability”
means the amount of Revolving Credit Advances against Eligible Accounts Lender may from time to time make available to a Borrower
up to Eighty percent (80%) of the net face amount of such Borrower’s Eligible Accounts less the Dilution Reserve.

 

    

    

    

 

“Affiliate”
means with respect to any Person (i) each other Person that, directly or indirectly, owns or controls, whether beneficially, or
as a trustee, guardian or other fiduciary, ten percent (10%) or more of the Stock having ordinary voting power for the election
of directors of such Person; (ii) each other Person that controls, is controlled by or is under common control with such Person
or any Affiliate of such Person; or (iii) each of such Person’s officers, directors, joint venturers and partners. For
the purpose of this definition, “control” of a Person means the possession, directly or indirectly, of the power
to direct or cause the direction of its management or policies, whether through the ownership of voting securities, by contract
or otherwise.

 

“Agreement”
means this Agreement including all appendices, exhibits or schedules attached or otherwise identified thereto, restatements and
modifications and supplements thereto, and any appendices, exhibits or schedules to any of the foregoing, each as in effect at
the time such reference becomes operative; provided, that except as specifically set forth in this Agreement, any reference to
the Disclosure Schedules to this Agreement shall be deemed a reference to the Disclosure Schedules as in effect on the Closing
Date or in a written amendment thereto executed by Borrowers and Lender.

 

“AIA”
means American Architectural Institute.

 

“Assignment
of Leases” means collectively, any Assignment of Leases which is executed in favor of Lender to secure the Obligations,
including but not limited to the Assignment of Leases on the Real Estate.

 

“Books and Records”
means all books, records, board minutes, contracts, licenses, insurance policies, environmental audits, business plans, files,
computer files, computer discs and other data and software storage and media devices, accounting books and records, financial statements
(actual and pro forma), filings with Governmental Authorities and any and all records and instruments relating to, or otherwise
necessary or helpful in the collection of or realization upon, the Collateral or any Borrower’s business.

 

“Borrower”
has the meaning set forth in the preamble to this Agreement.

 

“Borrowing Base”
means at any time with respect to any Borrower, an amount equal to the sum at such time of:

 

(a)       Accounts
Availability; plus

 

(b)       Inventory
Availability; minus

 

(c)       the
Reserves, including without limitation, the amount of Letter of Credit Obligations.

 

“Borrowing Base
Certificate” means a certificate in the form of Exhibit C.

 

“Borrowing Representative”
means David J. Noble.

 

“Business Day”
means a day on which Lender is open for business and that is not a Saturday, a Sunday or other day on which banks are required
or permitted to be closed in the State of New York.

 

    2

    

    

 

“Capital Expenditures”
means all payments or accruals (including obligations under capital leases) for any fixed assets or improvements or for replacements,
substitutions or additions thereto, that have a useful life of more than one year and that are required to be capitalized under
GAAP.

 

“Cash Collateral
Account” has the meaning assigned to it in Schedule I.

 

“Change of Control”
means, with respect to any Person on or after the Closing Date, any change in the composition of such Person’s Stockholders
as of the Closing Date shall occur which would result in any Stockholder or group acquiring 49.9% or more of any class of Stock
of such Person, or that any Person (or group of Persons acting in concert) shall otherwise acquire, directly or indirectly (including
through Affiliates), the power to elect a majority of the board of directors or managers of such Person or otherwise direct the
management or affairs of such Person by obtaining proxies, entering into voting agreements or trusts, acquiring securities or otherwise.

 

“Charges”
means all federal, state, county, city, municipal, local, foreign or other governmental taxes (including taxes owed to PBGC at
the time due and payable), levies, customs or other duties, assessments, charges, liens, and all additional charges, interest,
penalties, expenses, claims or encumbrances upon or relating to (i) the Collateral, (ii) the Obligations, (iii) the employees,
payroll, income or gross receipts of a Credit Party, (iv) the ownership or use of any assets by a Credit Party, or (v) any other
aspect of a Credit Party’s business.

 

“Chattel Paper”
means all “chattel paper,” as such term is defined in the UCC, now owned or hereafter acquired by any Person.

 

“Closing Date”
means the Business Day on which the conditions precedent set forth in Article VI have been satisfied or specifically waived in
writing by Lender, and the initial Loans has been made.

 

“Collateral”
has the meaning assigned to it in Section 10.1.

 

“Collateral
Account” means an account in Lender’s name under the dominion and control of Lender maintained at a financial institution
acceptable to Lender into which all cash, checks, notes, drafts and other similar items relating to or constituting Proceeds of
or payments made in respect of any Collateral shall be deposited.

 

“Contract Rate”
means an interest rate per annum equal to the sum of (i) the Prime Rate plus (ii) two and three/quarters percent (2.75%).

 

“Contracts”
means all the contracts, undertakings, or agreements (other than rights evidenced by Chattel Paper, Documents or Instruments) in
or under which any Person may now or hereafter have any right, title or interest, including any agreement relating to the terms
of payment or the terms of performance of any Account.

 

“Contractual
Obligation” means as to any Person, any provision of any security issued by such Person or of any agreement, instrument,
or other undertaking to which such Person is a party or by which it or any of its property is bound.

 

    3

    

    

 

“Corporate Credit
Party” means each Credit Party which is not a natural Person.

 

“Credit Documents”
means this Agreement, each Pledge Agreement, the Note, each Guaranty, each Power of Attorney, each Mortgage, each Life Insurance
Assignment, each Subordination Agreement, each Intellectual Property Security Agreement, and all other documents, instruments and
agreements now or hereafter executed and/or delivered in connection herewith or therewith.

 

“Credit Parties”
means each Borrower and each other Person (other than Lender) that is or may become a party to this Agreement or any other Credit
Document.

 

“Default”
means any act or event which, with the giving of notice or passage of time or both, would unless cured or waived would become an
Event of Default.

 

“Default Rate”
means the sum of (a) the interest rate or fee in effect from time to time as respects each Loan and (b) five percent (5%)].

 

“Deposit Accounts”
means all “deposit accounts” as such term is defined in the UCC, now or hereafter held in the name of any Person.

 

“Dilution”
means the reduction of Accounts for any reason other than cash collections, including but not limited to credit memos, bad debt
write offs, discounts, allowances and returns.

 

“Dilution Reserve”
means two times the amount of increase in Dilution which shall be tested upon the earlier of (a) every 6 months or (b) each field
examination.

 

“Disbursement
Accounts” has the meaning set forth in Schedule IV.

 

“Disclosure
Schedules” means the Disclosure Schedules prepared by Borrowers and denominated as Disclosure Schedules 7.2 through 9(e)
in the Index of Exhibits and Schedules to this Agreement.

 

“Documents”
means all “documents,” as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever
located, including all bills of lading, dock warrants, dock receipts, warehouse receipts, and other documents of title, whether
negotiable or non-negotiable.

 

    4

    

    

 

“Eligible Accounts”
means and includes each Account of each Borrower which conforms to the following criteria: (a) shipment of the merchandise or the
rendition of services has been completed; (b) merchandise or services shall not have been repossessed, returned, rejected or disputed
by the Account Debtor and there shall not have been asserted any offset, defense or counterclaim; (c) continues to be in full conformity
with the representations and warranties made by any Borrower to Lender with respect thereto; (d) Lender is, and continues to be,
satisfied with the credit standing of the Account Debtor in relation to the amount of credit extended; (e) there are no facts existing
or threatened which are likely to result in any adverse change in an Account Debtor’s financial condition; (f) is documented
by an invoice in a form approved by Lender and shall not be unpaid more than ninety (90) days from invoice date; (g) less than
thirty-three percent (33%) of the unpaid amount of invoices due from such Account Debtor remain unpaid more than ninety (90) days
from invoice date; (h) is not evidenced by chattel paper or an instrument of any kind with respect to or in payment of the Account
unless such instrument is duly endorsed to and in possession of Lender or represents a check in payment of an Account; (i) if the
Account Debtor is located outside of the United States, the goods which gave rise to such Account were shipped after receipt by
a Borrower from or on behalf of the Account Debtor of an irrevocable letter of credit, assigned and delivered to Lender and confirmed
by a financial institution acceptable to Lender or acceptable credit insurance and is in form and substance acceptable to Lender,
payable in the full amount of the Account in United States dollars at a place of payment located within the United States; (j)
Lender has a first priority perfected Lien in such Account and such Account is not subject to any other Lien other than Permitted
Liens; (k) does not arise out of transactions with any individual, employee, officer, agent, director, stockholder or Affiliate
of a Borrower; (l) is payable to a Borrower; (m) does not arise with respect to goods which are delivered on a cash-on-delivery
basis or placed on consignment, guaranteed sale, credit card sale, or other terms by reason of which the payment by the Account
Debtor may be conditional; (n) is not an obligation of an Account Debtor that has suspended business, made a general assignment
for the benefit of creditors, is unable to pay its debts as they become due or as to which a petition has been filed (voluntary
or involuntary) under any law relating to bankruptcy, insolvency, reorganization or relief of debtors; (o) does not arise out of
a bill and hold sale prior to shipment (p) does not arise out of a sale to any Person to which any Borrower is indebted, unless
the amount of such indebtedness, and any anticipated indebtedness, is deducted in determining the face amount of such Account;
(q) is net of any returns, discounts, claims, credits, retainage and allowances; (r) if the Account arises out of contracts between
a Borrower and the United States, any state, or any department, agency or instrumentality of any of them, such Borrower has so
notified Lender, in writing, prior to the creation of such Account, and, if Lender so requests, there has been compliance with
any governmental notice or approval requirements, including compliance with the Federal Assignment of Claims Act; (s) is a good
and valid unbonded account representing an undisputed bona fide indebtedness incurred by the Account Debtor therein named, for
a fixed sum as set forth in the invoice relating thereto with respect to an unconditional sale and delivery upon the stated terms
of goods sold by a Borrower, or work, labor and/or services rendered by a Borrower; (t) the total unpaid Accounts from such Account
Debtor does not exceed the “Concentration Limit” which means: (a) for any Account Debtor selected by the Borrowers,
thirty percent (30%) of all Eligible Accounts provided that Accounts from any two (2) Account Debtors do not exceed fifty percent
(50%) of all Eligible Accounts; and (b) for all other Account Debtors not selected by the Borrowers in subsection (a), twenty percent
(20%) but only the excess above the applicable percentage shall be excluded from Eligible Accounts;
(u) does not arise out of progress billings prior to completion of the order which are not reported on the Borrowing Base Certificate;
(v) such Borrower’s right to payment is absolute and not contingent upon the fulfillment of any condition whatsoever or any
special order, terms or conditions; (w) a Borrower is able to bring suit and enforce its remedies against the Account Debtor through
judicial process; (x) does not represent interest payments, late or finance charges, service charges, taxes owing to or payable
by Borrower; and (y) is otherwise satisfactory to Lender as determined in good faith by Lender in the reasonable exercise of its
discretion.

 

    5

    

    

 

“Eligible Inventory”
means Inventory owned by a Borrower which Lender, in its sole and absolute discretion, determines: (a) is subject to a first priority
perfected Lien in favor of Lender and is subject to no other Liens whatsoever other than Permitted Liens; (b) is located on premises
owned or operated by a Borrower in the United States; (c) is located on premises with respect to which Lender has received a landlord,
mortgagee or warehouse agreement acceptable in form and substance to Lender; (d) is not in transit; (e) is not covered by a negotiable
document of title, unless such document and evidence of acceptable insurance covering such Inventory has been delivered to Lender;
(f) is in good condition and meets all standards imposed by any governmental agency, or department or division thereof having regulatory
Governmental Authority over such Inventory, its use or sale including the Federal Fair Labor Standards Act of 1938 as amended,
and all rules, regulations and orders thereunder; (g) is currently either usable or saleable in the normal course of a Borrower’s
business; (h) is not placed by a Borrower on consignment or held by a Borrower on consignment from another Person; (i) is in conformity
with the representations and warranties made by a Borrower to Lender with respect thereto; (j) is not subject to any licensing,
patent, royalty, trademark, trade name or copyright agreement with any third parties; (k) does not require the consent of any Person
for the completion of manufacture, sale or other disposition of such Inventory by Lender following an Event of Default and such
completion, manufacture or sale does not constitute a breach or default under any contract or agreement to which a Borrower is
a party or to which such Inventory is or may be subject; (l) is not a special order, work-in-process or raw materials or packaging,
or sample inventory; (m) is covered by casualty insurance acceptable to Lender; and (n) not to be ineligible for any other reason.

 

“Environmental
Laws” means all federal, state and local laws, statutes, ordinances and regulations, now or hereafter in effect, and
in each case as amended or supplemented from time to time, and any applicable judicial or administrative interpretation thereof
relating to the regulation and protection of human health, safety, the environment and natural resources (including ambient air,
surface water, groundwater, wetlands, land surface or subsurface strata, wildlife, aquatic species and vegetation).

 

“Environmental
Liabilities” means all liabilities, obligations, responsibilities, remedial actions, removal costs, losses, damages of
whatever nature, costs and expenses (including all reasonable fees, disbursements and expenses of counsel, experts and consultants
and costs of investigation and feasibility studies), fines, penalties, sanctions and interest incurred as a result of any claim,
suit, action or demand of whatever nature by any Person, and which relate to any health or safety condition regulated under any
Environmental Law, environmental permits or in connection with any Release, threatened Release, or the presence of a Hazardous
Material.

 

“Equipment”
means all “equipment” as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever located.

 

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

 

    6

    

    

 

“ERISA Event”
shall mean (a) any “reportable event”, as defined in Section 4043 of ERISA or the regulations issued thereunder with
respect to a Plan (other than an event for which the 30-day notice period is waived); (b) the existence with respect to any Plan
of an “accumulated funding deficiency” (as defined in Section 412 of the IRC or Section 302 of ERISA), whether or not
waived; (c) the filing pursuant to Section 412(b) of the IRC or Section 303(d) of ERISA of an application for a waiver of the minimum
funding standard with respect to any Plan; (d) the incurrence by any Credit Party of any liability under Title IV of ERISA with
respect to the termination of any Plan; (e) the receipt by any Credit Party from the PBGC or a plan administrator of any notice
relating to an intention to terminate any Plan or to appoint a trustee to administer any Plan; (f) the incurrence by any Credit
Party of any liability with respect to any withdrawal or partial withdrawal from any Plan or Multiemployer Plan; or (g) the receipt
by any Credit Party of any notice, or the receipt by any Multiemployer Plan from any Credit Party of any notice, concerning the
imposition of Withdrawal Liability or a determination that a Multiemployer Plan is, or is expected to be, insolvent or in reorganization,
within the meaning of Title IV of ERISA.

 

“Event of Default”
has the meaning set forth in Section 12.1.

 

“Financial Statements”
means income statement, balance sheet, and statement of cash flows of each Borrower, internally prepared for each Fiscal Month,
and audited financial statements of Digirad Corporation for each Fiscal Year, prepared in accordance with GAAP.

 

“Fiscal Month”
means any of the monthly accounting periods of each Credit Party.

 

“Fiscal Year”
means the 12 month period of each Credit Party ending December 31 of each year. Subsequent changes of the fiscal year of each Credit
Party shall not change the term “Fiscal Year” unless Lender shall consent in writing to such change.

 

“Fixtures”
means all “fixtures” as such term is defined in the UCC, now owned or hereafter acquired by any Person.

 

“GAAP”
means generally accepted accounting principles, practices and procedures in effect from time to time in the United States of America.

 

“General Intangibles”
means all “general intangibles” as such term is defined in the UCC, now owned or hereafter acquired by any Person including
all right, title and interest which such Person may now or hereafter have in or under any Contract, all Payment Intangibles, customer
lists, Licenses, Intellectual Property, interests in partnerships, joint ventures and other business associations, permits, proprietary
or confidential information, inventions (whether or not patented or patentable), technical information, procedures, designs, knowledge,
know-how, Software, data bases, data, skill, expertise, experience, processes, models, drawings, materials, Books and Records,
Goodwill (including the Goodwill associated with any Intellectual Property), all rights and claims in or under insurance policies
(including insurance for fire, damage, loss, and casualty, whether covering personal property, real property, tangible rights or
intangible rights, all liability, life, key-person, and business interruption insurance, and all unearned premiums), uncertificated
securities, choses in action, deposit accounts, rights to receive tax refunds and other payments, rights to receive dividends,
distributions, cash Instruments and other property in respect of or in exchange for pledged Stock and Investment Property, and
rights of indemnification.

 

    7

    

    

 

“Goods”
means all “goods”, as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever located,
including embedded software to the extent included in “goods” as defined in the UCC.

 

“Goodwill”
means all goodwill, trade secrets, proprietary or confidential information, technical information, procedures, formulae, quality
control standards, designs, operating and training manuals, customer lists, and distribution agreements now owned or hereafter
acquired by any Person.

 

“Governmental
Authority” means any nation or government, any state or other political subdivision thereof, and any agency, department
or other entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government.

 

“Guaranteed
Indebtedness” means, as to any Person, any obligation of such Person guaranteeing any indebtedness, lease, dividend,
or other obligation (“primary obligations”) of any other Person (the “primary obligor”) in any manner,
including any obligation or arrangement of such guaranteeing Person (whether or not contingent): (i) to purchase or repurchase
any such primary obligation; (ii) to advance or supply funds (a) for the purchase or payment of any such primary obligation
or (b) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency
or any balance sheet condition of the primary obligor; (iii) to purchase property, securities or services primarily for the
purpose of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary
obligation; or (iv) to indemnify the owner of such primary obligation against loss in respect thereof.

 

“Guarantor”
means each Person (in addition to a Corporate Credit Party as provided herein) which executes a guaranty or a support, put or other
similar agreement in favor of Lender in connection with the transactions contemplated by this Agreement.

 

“Guaranty”
means any agreement to perform all or any portion of the Obligations on behalf of any Borrower, in favor of, and in form and substance
satisfactory to, Lender, together with all amendments, modifications and supplements thereto, and shall refer to such Guaranty
as the same may be in effect at the time such reference becomes operative, including but not limited to those provisions of Sections
13.5, 13.6, 13.7, 13.8, 13.9, 13.10 and 13.11 hereof.

 

“Hazardous Material”
means any substance, material or waste which is regulated by or forms the basis of liability now or hereafter under, any Environmental
Laws, including any material or substance which is (a) defined as a “solid waste,” “hazardous waste,” “hazardous
material,” “hazardous substance,” “extremely hazardous waste,” “restricted hazardous waste,”
“pollutant,” “contaminant,” “hazardous constituent,” “special waste,” “toxic
substance” or other similar term or phrase under any Environmental Laws, (b) petroleum or any fraction or by-product thereof,
asbestos, polychlorinated biphenyls (PCB’s), or any radioactive substance.

 

    8

    

    

 

“Hazardous Waste”
has the meaning ascribed to such term in the Resource Conservation and Recovery Act (42 U.S.C. §§ 6901 et.
seq.).

 

“Indebtedness”
of any Person means: (i) all indebtedness of such Person for borrowed money or for the deferred purchase price of property
or services (including reimbursement and all other obligations with respect to surety bonds, letters of credit and bankers’
acceptances, whether or not matured, but not including obligations to trade creditors incurred in the ordinary course of business
and not more than 60 days past due); (ii) all obligations evidenced by notes, bonds, debentures or similar instruments; (iii) all
indebtedness created or arising under any conditional sale or other title retention agreements with respect to property acquired
by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited
to repossession or sale of such property); (iv) all obligations under capital leases; (v) all Guaranteed Indebtedness;
(vi) all Indebtedness referred to in clauses (i), (ii), (iii), (iv) or (v) above secured by (or for which the holder of such
Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien upon or in property (including accounts
and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Indebtedness;
(vii) the Obligations; and (viii) all liabilities under Title III of ERISA.

 

“Indemnified
Person” has the meaning given to such term in Section 13.3(b).

 

“Initial Borrowers”
has the meaning set forth in the preamble to this Agreement.

 

“Instruments”
means all “instruments”, as such term is defined in the UCC, now owned or hereafter acquired by any Person, wherever
located, including all certificated securities and all notes and other evidences of indebtedness, other than instruments that constitute,
or are a part of a group of writings that constitute, Chattel Paper.

 

“Intellectual
Property” means any and all Licenses, patents, patent registrations, copyrights, copyright registrations, trademarks,
trademark registrations, trade secrets, domain names, website addresses and customer lists.

 

“Intellectual
Property Security Agreement” means the Intellectual Property Security Agreement in the form of Exhibit I made
in favor of Lender by each applicable Credit Party.

 

“Intercreditor
Agreement” means any intercreditor and subordination agreement accepted by Lender from time to time.

 

“Inventory”
means all “inventory”, as such term is defined in the UCC, now or hereafter owned or acquired by any Person, wherever
located.

 

“Inventory Availability”
means the amount of Revolving Credit Advances against Eligible Inventory Lender may from time to time make available to Borrowers
up to the lesser of (a) $500,000, or (b) up to fifty percent (50%) of the value of Borrowers’ Eligible Inventory (calculated
on the basis of the lower of cost or market, on a first-in first-out basis) or (c) the amount of Accounts Availability.

 

    9

    

    

 

“Investment
Property” means all “investment property”, as such term is defined in the UCC, now owned or hereafter acquired
by any Person, wherever located.

 

“IRC”
and “IRS” means respectively, the Internal Revenue Code of 1986 and the Internal Revenue Service, and any successors
thereto.

 

“ISP”
means the International Standby Practices, International Chamber of Commerce Publication No. 590, as the same may be amended from
time to time.

 

“LC Issuer”
shall mean a commercial bank or other financial institution selected by Lender, in is discretion, to issue Letters of Credit pursuant
to this Agreement.

 

“Lender”
has the meaning set forth in the preamble to this Agreement and if Lender shall decide to assign or syndicate any of the Obligations
such term shall include such assignee or such other members of the syndicate.

 

“Letter of Credit”
and “L/C” means a letter of credit issued by an LC Issuer for Lender’s account, at the request
of Borrowing Representative and on behalf of a Borrower containing terms and conditions satisfactory to Lender, which letter of
credit may either be a commercial letter of credit or standby letter of credit.

 

“Letter of Credit
Fee” has the meaning set forth in Schedule I.

 

“Letter of Credit
Obligations” means all outstanding obligations (including all duty, freight, taxes, costs, insurance and any other charges
and expenses) incurred by Lender, whether direct or indirect, contingent or otherwise, due or not due, in connection with the issuance
or guarantee, by Lender or another, of Letters of Credit or Letters of Guaranty, all as further set forth in Schedule I.

 

“Letter-of-Credit
Rights” has the meaning given to “letter-of-credit rights” as such term is defined in the UCC, now owned
or hereafter acquired by any Person, including rights to payment or performance under a letter of credit, whether or not such Person,
as beneficiary, has demanded or is at the time entitled to demand payment or performance.

 

“Letters of
Guaranty” and “L/G” means a letter of guaranty issued by Lender for the account of a Borrower
guarantying payment of the purchase price of the goods financed thereby, containing terms and conditions satisfactory to Lender.

 

“License”
means any rights under any written agreement now or hereafter acquired by any Person to use any trademark, trademark registration,
copyright, copyright registration or invention for which a patent is in existence or other license of rights or interests now held
or hereafter acquired by any Person.

 

“Lien”
means any mortgage, security deed or deed of trust, pledge, hypothecation, assignment, deposit arrangement, lien, security interest,
charge, claim or encumbrance, or preference, priority or other security agreement or preferential arrangement of any kind or nature
whatsoever (including any lease or other title retention agreement, any financing lease having substantially the same economic
effect as any of the foregoing, and the filing of, or agreement to give, any financing statement under the UCC or comparable law
of any jurisdiction.

 

    10

    

    

 

“Life Insurance
Assignment” means an Assignment of Life Insurance Policy as Collateral to be executed by the owner and the beneficiary
thereof, in form and substance satisfactory to Lender, granting Lender a Lien on the Life Insurance Policy to secure payment of
the Obligations, as may be requested by Lender from time to time.

 

“Life Insurance
Policy” means, the life insurance policy[ies] maintained by Initial Borrower upon the life of Matthew Mosher with the
death benefit[s] thereunder of at least $2,000,000.

 

“Litigation”
means any claim, lawsuit, litigation, investigation or proceeding of or before any arbitrator or Governmental Authority.

 

“Loans”
means the Revolving Credit Advances and all extensions of credit hereunder or under any Credit Document, including Letter of Credit
Obligations.

 

“LSVM Purchase
Agreement” means the Membership Interest Purchase Agreement, dated as of April 1, 2019, by and among ATRM Holdings, Inc.,
Lone Star Value Management, LLC and Jeffrey E. Eberwein.

 

“Margin
Stock” has the meaning set forth in Section 7.8.

 

“Material Adverse
Effect” means a material adverse effect on (a) the condition, operations, assets or business of any Credit Party, (b)
any Credit Party’s ability to pay or perform the Obligations in accordance with the terms hereof or any Credit Document,
(c) the value of the Collateral, the Liens on the Collateral or the priority of any such Lien or (d) the practical realization
of the benefits of Lender’s rights and remedies under this Agreement and the Credit Documents.

 

“Maturity Date”
means the earlier of (a) January 1, 2022 or (b) the termination, maturity or repayment of the Star Credit Facility.

 

“Maximum Legal
Rate” shall have the meaning given to such term in Section 5.1(a)(iv).

 

“Maximum Revolving
Amount” means $3,000,000.

 

“Minimum Actionable
Amount” means $10,000.

 

“Minimum Average
Monthly Loan Amount” means 50% of the Maximum Revolving Amount.

 

“Mortgage”
means collectively, any mortgage or deed of trust and assignment of leases which is executed in favor of Lender to secure the Obligations,
including but not limited to the Mortgage and Assignment of Leases on the Real Estate.

 

    11

    

    

 

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

 

“Note”
means the promissory note of Borrowers executed in favor of Lender substantially in the form of Exhibit A.

 

“Obligations”
means all obligations under any Guaranty and all Loans, all advances, debts, liabilities, obligations, covenants and duties owing
by any Credit Party to Lender (or any corporation that directly or indirectly controls or is controlled by or is under common control
with Lender) of every kind and description (whether or not evidenced by any note or other instrument and whether or not for the
payment of money or the performance or non-performance of any act), direct or indirect, absolute or contingent, due or to become
due, contractual or tortious, liquidated or unliquidated, whether existing by operation of law or otherwise now existing or hereafter
arising including any debt, liability or obligation owing from any Credit Party to others which Lender may have obtained by assignment
or otherwise and further including all interest (including interest accruing at the then applicable rate provided in this Agreement
after the maturity of the Loans and interest accruing at the then applicable rate provided in this Agreement after the filing of
any petition in bankruptcy, or the commencement of any insolvency, reorganization or like proceeding, whether or not a claim for
post-filing or post-petition interest is allowed in such proceeding), charges or any other payments any Credit Party is required
to make by law or otherwise arising under or as a result of this Agreement or any other Credit Document, together with all reasonable
expenses and reasonable attorneys’ fees chargeable to any Borrower’s account or incurred by Lender in connection with
any Borrower’s account whether provided for herein or in any Credit Agreement. The term includes the definition of “Obligations”
as defined in any Credit Documents which evidence the Star Credit Facility. The term also includes the definition of “Obligations”
as defined in the Loan and Security Agreement dated February 23, 2016, as amended executed by some of the Credit Parties herein
and Lender.

 

“Pass Thru Distributions”
mean dividends declared and paid by a Credit Party to its Stockholders, or which could have been declared and paid by a Credit
Party, in an amount not to exceed the Pass Thru Tax Liabilities.

 

“Pass Thru Tax
Liabilities” means the amount of state and federal income tax paid or to be paid by a Credit Party’s Stockholders
on taxable income earned by such Credit Party and attributable to the Stockholder as a result of such Credit Party’s status
as a disregarded entity for tax purposes, assuming the highest marginal income tax rate for federal and state (for the state or
states in which any Stockholder is liable for income taxes with respect to such income) income tax purposes, after taking into
account any deduction for state income taxes in calculating the federal income tax liability and all other deductions, credits,
deferrals and other reductions available to Stockholders from or through a Credit Party.

 

“Payment Intangible”
has the meaning give to the term “payment intangible” in the UCC and in any event shall include, a General Intangible
under which the Account Debtor’s principal obligation is a monetary obligation.

 

    12

    

    

 

“Payment Office”
means 8 West 40th Street, 14th Floor, New York, New York 10018 or such other place as Lender may from time
to time designate in writing.

 

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

 

“Permitted Liens”
means the following Liens: (i) Liens for taxes or assessments or other governmental Charges or levies, either not yet due and payable
or to the extent that nonpayment thereof is permitted by the terms of Section 7.10; (ii) pledges or deposits securing
obligations under worker’s compensation, unemployment insurance, social security or public liability laws or similar legislation;
(iii) pledges or deposits securing bids, tenders, contracts (other than contracts for the payment of money) or leases to which
any Credit Party is a party as lessee made in the ordinary course of business; (iv) deposits securing public or statutory
obligations of any Credit Party; (v) inchoate and unperfected workers’, mechanics’, or similar liens arising in
the ordinary course of business so long as such Liens attach only to Equipment, fixtures or real estate; (vi) carriers’,
warehousemen’s, suppliers’ or other similar possessory liens arising in the ordinary course of business and securing
indebtedness not yet due and payable in an outstanding aggregate amount not in excess of the Minimum Actionable Amount at any time
so long as such Liens attach only to Inventory; (vii) deposits of money securing, or in lieu of, surety, appeal or customs
bonds in proceedings to which any Credit Party is a party; (viii)  zoning restrictions, easements, licenses, or other restrictions
on the use of real property or other minor irregularities in title (including leasehold title) thereto, so long as the same do
not materially impair the use, value, or marketability of such real estate; (ix) Purchase Money Liens securing Purchase Money
Indebtedness (or rent) to the extent permitted under Article IX(b); (x) Liens in existence on the Closing Date as disclosed
on Disclosure Schedule 9(e) provided that no such Lien is spread to cover additional property after the Closing Date and
the amount of Indebtedness secured thereby is not increased; and (xi) Liens in favor of Lender securing the Obligations.

 

“Person”
means any individual, sole proprietorship, partnership, limited liability partnership, joint venture, trust, unincorporated organization,
association, corporation, limited liability company, institution, public benefit corporation, entity or government (whether federal,
state, county, city, municipal or otherwise, including any instrumentality, division, agency, body or department thereof), and
shall include such Person’s successors and assigns.

 

“Plan”
means any employee pension benefit plan (other than a Multiemployer Plan) subject to the provisions of Title III of ERISA or Section
412 of the IRC or Section 302 of ERISA, and in respect of which a Credit Party is (or, if such plan were terminated, would under
Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

 

“Pledge Agreement”
means each pledge agreement in favor of Lender by any Credit Party.

 

“Prime Rate”
means the “prime rate” which from time to time published in the “Money Rates” column of The Wall Street
Journal (Eastern Edition, New York Metro); provided, however, if the Money Rates column of The Wall Street Journal (Eastern
Edition, New York Metro) ceases to be published or otherwise does not designate a “prime rate” as of a Business Day,
Lender has the right to obtain such information from a similar business publication of its selection. The Prime Rate shall be increased
or decreased as the case may be for each increase or decrease in the Prime Rate in an amount equal to such increase or decrease
in the Prime Rate; each change to be effective as of the day of the change in such rate.

 

    13

    

    

 

“Proceeds”
means “proceeds”, as such term is defined in the UCC and, in any event, shall include: (a) any and all proceeds of
any insurance, indemnity, warranty or guaranty payable to any Credit Party or any other Person from time to time with respect to
any Collateral; (b) any and all payments (in any form whatsoever) made or due and payable to a Credit Party from time to time in
connection with any requisition, confiscation, condemnation, seizure or forfeiture of any Collateral by any governmental body,
governmental authority, bureau or agency (or any person acting under color of governmental authority); (c) any claim of a Credit
Party against third parties (i) for past, present or future infringement of any Intellectual Property or (ii) for past, present
or future infringement or dilution of any trademark or trademark license or for injury to the goodwill associated with any trademark,
trademark registration or trademark licensed under any trademark License; (d) any recoveries by a Credit Party against third parties
with respect to any litigation or dispute concerning any Collateral, including claims arising out of the loss or nonconformity
of, interference with the use of, defects in, or infringement of rights in, or damage to, Collateral; (e) all amounts collected
on, or distributed on account of, other Collateral, including dividends, interest, distributions and Instruments with respect to
Investment Property and pledged Stock; (f) all amounts related to equity investment or temporary indebtedness and (g) any and all
other amounts , rights to payment or other property acquired upon the sale, lease, license, exchange or other disposition of Collateral
and all rights arising out of Collateral.

 

“Projections”
means as of any date the balance sheet, statements of income and cash flow for Credit Parties and Subsidiaries (including forecasted
Capital Expenditures) (a) by month for the next Fiscal Year, and (b) by year for the following three Fiscal Years, in each case
prepared in a manner consistent with GAAP and accompanied by senior management’s discussion and analysis of such plan.

 

“Purchase Money
Indebtedness” means (a) any Indebtedness incurred for the payment of all or any part of the purchase price of any fixed
asset, (b) any Indebtedness incurred for the sole purpose of financing or refinancing all or any part of the purchase price of
any fixed asset, and (c) any renewals, extensions or refinancings thereof (but not any increases in the principal amounts thereof
outstanding at that time).

 

“Purchase Money
Lien” means any Lien upon any fixed assets which secures the Purchase Money Indebtedness related thereto but only if
such Lien shall at all times be confined solely to the asset the purchase price of which was financed or refinanced through the
incurrence of the Purchase Money Indebtedness secured by such Lien and only if such Lien secures only such Purchase Money Indebtedness.

 

“Real Estate”
means the real property and the improvements thereon located at (a) 300 Park Street. South Paris, Maine 04281, (b) 947 Waterford
Road, Waterford, Maine 04088 , and (c) 56 Mechanic Falls Road, Oxford, Maine 04270.

 

    14

    

    

 

“Real Property”
has the meaning assigned to it in Section 7.6.

 

“Release”
means, as to any Person, any release, spill, emission, leaking, pumping, injection, deposit, disposal, discharge, dispersal, dumping,
leaching or migration of Hazardous Materials in the indoor or outdoor environment by such Person, including the movement of Hazardous
Materials through or in the air, soil, surface water, ground water or property.

 

“Requirement
of Law” means as to any Person, the Certificate or Articles of Incorporation and By-Laws or other organizational or governing
documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental
Authority, in each case binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Reserves”
means reserves including the Dilution Reserve, established by Lender from time to time in its good faith credit judgment, including
to protect Lender’s interest in the Collateral, to protect Lender against possible non-payment of Accounts for any reason
by Account Debtors, to protect against the diminution in value of any Collateral, to protect Lender against the possible non-payment
of any Obligations, to protect Lender for any unpaid taxes, to protect Lender in respect of any state of facts that could constitute
a Default or Event of Default and to protect Lender for any Letter of Credit Obligations.

 

“Restricted
Payment” means: (i) the declaration or payment of any dividend or the incurrence of any liability to make any other payment
or distribution of cash or other property or assets on or in respect of Credit Party’s Stock; (ii) any payment or distribution
made in respect of any Subordinated Debt of any Credit Party in violation of any Subordination Agreement or other agreement made
in favor of Lender; (iii) any payment on account of the purchase, redemption, defeasance or other retirement of any Credit Party’s
Stock or Indebtedness or any other payment or distribution made in respect of any thereof, either directly or indirectly, other
than payment of Indebtedness to trade creditors incurred in the ordinary course of business consistent with past practice; or (iv)
any payment, loan, contribution, or other transfer of funds or other property to any Stockholder of such Person which is not expressly
and specifically permitted in this Agreement or in a Credit Document; provided, that no payment to Lender shall constitute a Restricted
Payment and no payments to Jeffrey E. Eberwein pursuant to the LSVM Purchase Agreement shall constitute a Restricted Payment following
compliance with the subordination provisions in Paragraph 3 of the Tenth Agreement of Amendment to Loan and Security Agreement
dated April 1, 2019 by and among KBS Builders, Inc., ATRM Holdings, Inc., and Lender provided that such payments to Jeffrey E.
Eberwein are made by Digirad Corporation.

 

“Revolving Credit
Advances” shall have the meaning given to such term in Section 2.1(a).

 

“Software”
means all “software” as such term is defined in the UCC, including all computer programs and all supporting information
provided in connection with a transaction related to any program.

 

    15

    

    

 

“Star Credit
Facility” means the credit facility granted by Lender to Star Real Estate Holdings USA, Inc., a Delaware corporation,
300 Park Street, LLC, a Delaware limited liability company, 947 Waterford Road, LLC, a Delaware limited liability company and 56
Mechanic Falls Road, LLC, a Delaware limited liability company in a certain Loan and Security Agreement dated of even date executed
by the Corporate Credit Parties hereto as it may be subsequently amended.

 

“Stock”
means all certificated and uncertificated shares, options, warrants, membership interests, general or limited partnership interests,
participation or other equivalents (regardless of how designated) of or in a corporation, partnership, limited liability company
or equivalent entity whether voting or nonvoting, including common stock, preferred stock, or any other “equity security”
(as such term is defined in Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange Commission
under the Securities Exchange Act of 1934).

 

“Stockholder”
means each holder of Stock of Borrower.

 

“Subordinated
Debt” means any note, document, instrument or agreement now or any time hereafter executed and/or delivered by any Credit
Party with or in favor of any Subordinated Lender which evidences the principal, interest and other amounts owed by a Credit Party
to such Subordinated Lender.

 

“Subordinated
Lender” means collectively, any Person who enters into a Subordination Agreement with Lender with respect to amounts
owed by any Credit Party to such Subordinated Lender, including but not limited to Lone Star Value Co-Invest I, LP, Lone Star Value
Management, Inc., Star Procurement, Inc., Digirad Corporation, ATRM Holdings, Inc., and Premier Bank.

 

“Subordination
Agreement” means collectively, all intercreditor and subordination agreements accepted by Lender from time to time with
respect to Indebtedness of any Credit Party, including but not limited to those from a Subordinated Lender.

 

“Subsidiary”
means, with respect to any Person, (i) any corporation of which an aggregate of more than 50% of the outstanding Stock having ordinary
voting power to elect a majority of the board of directors of such corporation (irrespective of whether, at the time, Stock of
any other class or classes of such corporation has or might have voting power by reason of the happening of any contingency) is
at the time, directly or indirectly, owned legally or beneficially by such Person and/or one or more Subsidiaries of such Person,
or with respect to which any such Person has the right to vote or designate the vote of 50% or more of such Stock whether by proxy,
agreement, operation of law or otherwise, and (ii) any partnership or limited liability company in which such Person or one
or more Subsidiaries of such Person has an equity interest (whether in the form of voting or participation in profits or capital
contribution) of more than 50% or of which any such Person is a general partner or manager or may exercise the powers of a general
partner or manager.

 

“Supporting
Obligations” means all “supporting obligations” as such term is defined in the UCC, including Letter-of-Credit
Rights or secondary obligations that supports the payment or performance of Accounts, Chattel Paper, Documents, General Intangibles,
Instruments, or Investment Property.

 

    16

    

    

 

“Tangible Net
Worth” shall mean, with respect to any Person, at any date, the total assets (excluding any assets attributable to any
issuances by such Person of any Stock after the Closing Date and excluding any intangible assets and loans made to any officer,
director, shareholder or employee of such Person) minus the total liabilities (excluding Subordinated Debt), in each case, of such
Person at such date determined in accordance with GAAP, except as otherwise defined for purposes of the Financial Covenants set
forth on Schedule III.

 

“Term”
means the Closing Date through the Maturity Date subject to acceleration upon the occurrence of an Event of Default hereunder or
other termination hereunder.

 

“Termination
Date” means the date on which all Obligations under this Agreement are indefeasibly paid in full, in cash (other than
amounts in respect of Letter of Credit Obligations if any, then outstanding, provided that a Borrower has funded such amounts in
cash in full into the Cash Collateral Account), and no Borrower shall have any further right to borrow any moneys or obtain other
Loans or financial accommodations under this Agreement.

 

“UCC”
means the Uniform Commercial Code as the same may, from time be in effect in the State of New York; provided, that in the event
that, by reason of mandatory provisions of law, any or all of the attachment, perfection or priority of, or remedies with respect
to, Lender’s Lien on any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than
the State of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect in such other jurisdiction
for purposes of the provisions of this Agreement relating to such attachment, perfection, priority or remedies and for purposes
of definitions related to such provisions; provided further, that to the extent that UCC is used to define any term herein or in
any Credit Document and such term is defined differently in different Articles or Divisions of the UCC, the definition of such
term contained in Article or Division 9 shall govern.

 

“Uniform Customs”
means with respect to a documentary Letter of Credit the Uniform Customs and Practice for Documentary Credits (1993 Revision),
International Chamber of Commerce Publication No. 500, as the same may be amended from time to time and with respect to a standby
Letter of Credit, the International Standby Practices, ISP.

 

“Withdrawal
Liability” means liability to a Multiemployer Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Part I of Subtitle E of Title III of ERISA.

 

1.2                   
Accounting Terms. Any accounting terms used in this Agreement which are not specifically defined shall have the meanings
customarily given them in accordance with GAAP and all financial computations shall be computed, unless specifically provided herein,
in accordance with GAAP consistently applied.

 

1.3                   
Other Terms. All other terms used in this Agreement and defined in the UCC, shall have the meaning given therein
unless otherwise defined herein.

 

    17

    

    

 

1.4                   
Rules of Construction. All Schedules, Addenda and Exhibits hereto or expressly identified to this Agreement are incorporated
herein by reference and taken together with this Agreement constitute but a single agreement. The words “herein”, hereof”
and “hereunder” or other words of similar import refer to this Agreement as a whole, including the Exhibits and Schedules
thereto, as the same may be from time to time amended, modified, restated or supplemented, and not to any particular section, subsection
or clause contained in this Agreement. Wherever from the context it appears appropriate, each term stated in either the singular
or plural shall include the singular and the plural, and pronouns stated in the masculine, feminine or neuter gender shall include
the masculine, the feminine and the neuter. The term “or” is not exclusive. The term “including” (or any
form thereof) shall not be limiting or exclusive. All references to statutes and related regulations shall include any amendments
of same and any successor statutes and regulations. All references in this Agreement or in the Schedules to this Agreement to sections,
schedules, disclosure schedules, exhibits, and attachments shall refer to the corresponding sections, schedules, disclosure schedules,
exhibits, and attachments of or to this Agreement. All references to any instruments or agreements, including references to any
of this Agreement or any of the other Credit Documents shall include any and all modifications or amendments thereto and any and
all extensions or renewals thereof.

 

		II.	LOANS

 

2.1                   
Revolving Credit Advances.

 

(a)              
Subject to the terms and conditions set forth herein and in the Credit Documents, Lender may, in its sole discretion, make
revolving credit advances (the “Revolving Credit Advances”) to Borrowers from time to time during the Term which,
in the aggregate at any time outstanding together with all outstanding Letter of Credit Obligations, will not exceed the lesser
of (x) the Maximum Revolving Amount or (y) an amount equal to the Borrowing Base.

 

(b)              
Notwithstanding the limitations set forth above, Lender retains the right to lend Borrowers from time to time such amounts
in excess of such limitations as Lender may determine in its sole discretion.

 

(c)              
Each Borrower acknowledges that the exercise of Lender’s discretionary rights hereunder may result during the term
of this Agreement in one or more increases or decreases in the advance percentages used in determining Accounts Availability, and
Inventory Availability and each Borrower hereby consents to any such increases or decreases which may limit or restrict advances
requested by Borrower.

 

(d)              
If any Borrower does not pay any interest, fees, costs or charges to Lender when due, Borrowers shall thereby be deemed
to have requested, and Lender is hereby authorized at its discretion to make and charge to any Borrower’s account, a Revolving
Credit Advance as of such date in an amount equal to such unpaid interest, fees, costs or charges.

 

(e)              
If any Credit Party at any time fails to perform or observe any of the covenants contained in this Agreement or any other
Credit Document, Lender may, but need not, perform or observe such covenant on behalf and in the name, place and stead of such
Credit Party (or, at Lender’s option, in Lender’s name) and may, but need not, take any and all other actions which
Lender may deem necessary to cure or correct such failure (including the payment of taxes, the satisfaction of Liens, the performance
of obligations owed to Account Debtors, lessors or other obligors, the procurement and maintenance of insurance, the execution
of assignments, security agreements and financing statements, and the endorsement of instruments). The amount of all monies expended
and all costs and expenses (including attorneys’ fees and legal expenses) incurred by Lender in connection with or as a result
of the performance or observance of such agreements or the taking of such action by Lender shall be charged to any Borrower’s
account as a Revolving Credit Advance and added to the Obligations. To facilitate Lender’s performance or observance of such
covenants of Credit Parties, each Credit Party hereby irrevocably appoints Lender, or Lender’s delegate, acting alone, as
such Credit Party’s attorney in fact (which appointment is coupled with an interest) with the right (but not the duty) from
time to time to create, prepare, complete, execute, deliver, endorse or file in the name and on behalf of such Credit Party any
and all instruments, documents, assignments, security agreements, financing statements, applications for insurance and other agreements
and writings required to be obtained, executed delivered or endorsed by such Credit Party.

 

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(f)               
Lender is authorized by Borrowers to record on its books or records the date, principal amount, amount and date of all payments
of principal of and interest on each Loan, and the outstanding principal balance of the Loans and such recordation shall constitute
prima facie evidence as to all such information contained therein. Lender shall provide Borrowing Representative on a monthly basis
with a statement and accounting of such recordations but any failure on the part of Lender to keep such recordation (or any errors
therein) or to send a statement thereof to Borrowing Representative shall not limit or otherwise affect the obligation of any Borrower
to repay (with applicable interest) any Loans. Except to the extent that Borrowing Representative shall, within thirty (30) days
after such statement and accounting is sent, notify Lender in writing of any objection any Borrower may have thereto (stating with
particularity the basis for such objection), such statement and accounting shall be deemed final, binding and conclusive upon Borrowers,
absent manifest error. The Loans made by Lender will be evidenced by a Note. Each Borrower will execute the Note simultaneously
with the execution of this Agreement.

 

(g)              
During the Term, each Borrower may borrow, prepay and reborrow Revolving Credit Advances, all in accordance with the terms
and conditions hereof.

 

(h)              
Subject to the terms and conditions of this Agreement including Schedule I, Borrowing Representative on behalf of
each Borrower may request and Lender may agree to incur Letter of Credit Obligations.

 

		III.	REPAYMENT

 

3.1                   
Repayment of the Revolving Credit Advances. Borrowers shall be required to (a) make a mandatory repayment hereunder
at any time that the aggregate outstanding principal balance of the Revolving Credit Advances made by Lender to Borrowers hereunder
is in excess of the Borrowing Base and/or Maximum Revolving Amount, in an amount equal to such excess, and (b) repay on the expiration
of the Term (i) the then aggregate outstanding principal balance of Revolving Credit Advances made by Lender to Borrowers hereunder
together with accrued and unpaid interest, fees and charges and (ii) all other amounts owed Lender under this Agreement and the
Credit Documents. Any payments of principal, interest, fees or any other amounts payable hereunder or under any Credit Document
shall be made prior to 12:00 noon (New York time) on the due date thereof in immediately available funds.

 

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		IV.	PROCEDURES

 

4.1                   
Procedure for Revolving Credit Advances. Borrowing Representative on behalf of each Borrower may by written or telephonic
notice request a borrowing of Revolving Credit Advances prior to 11:00 a.m. (New York time) on the Business Day of its request
to incur, on that day, a Revolving Credit Advance. All Revolving Credit Advances shall be disbursed from whichever office or other
place Lender may designate from time to time and, together with any and all other Obligations of Borrowers to Lender, shall be
charged to Borrowers’ account on Lender’s books. The proceeds of each Revolving Credit Advance made by Lender shall
be made available to Borrowers on the Business Day so requested by way of credit to the applicable Borrower’s operating account
maintained with such bank as Borrowing Representative designated to Lender. Any and all Obligations due and owing hereunder may
be charged to Borrowers’ account and shall constitute Revolving Credit Advances.

 

		V.	INTEREST AND FEES

 

5.1                   
Interest and Fees.

 

(a)               Interest.

 

(i)                
Except as modified by Section 5.1(a)(iii) below, Borrowers shall pay interest on the unpaid principal balance of the Loans
for each day they are outstanding at the Contract Rate.

 

(ii)             
Interest and fees shall be computed on the basis of actual days elapsed in a year of 360 days. Interest shall be payable
in arrears on the last day of each month and upon termination of this Agreement, or, at Lender’s option, Lender may charge
Borrowers’ account for said interest.

 

(iii)           
Effective upon the occurrence of any Event of Default and for so long as any Event of Default shall be continuing, the Contract
Rate and the Letter of Credit Fee shall automatically be increased to the Default Rate, and all outstanding Obligations, including
unpaid interest and Letter of Credit Fees, shall continue to accrue interest from the date of such Event of Default at the Default
Rate applicable to such Obligations.

 

(iv)            
Notwithstanding the foregoing, in no event shall the aggregate interest exceed the maximum rate permitted under any applicable
law or regulation, as in effect from time to time (the “Maximum Legal Rate”) and if any provision of this Agreement
or Credit Document is in contravention of any such law or regulation, interest payable under this Agreement and each Credit Document
shall be computed on the basis of the Maximum Legal Rate (so that such interest will not exceed the Maximum Legal Rate) and once
the amount of interest payable hereunder or under the Credit Documents is less than the Maximum Legal Rate, Lender shall not reduce
interest payable hereunder or any Credit Document below the amount computed based upon the Maximum Legal Rate until the aggregate
amount of interest paid equals the amount of interest which would have been payable if the Maximum Legal Rate had not been imposed.

 

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(v)              
Borrowers shall pay principal, interest and all other amounts payable hereunder, or under any Credit Document, without any
deduction whatsoever, including any deduction for any set-off or counterclaim.

 

		(b)	Fees.

 

(i)                
Minimum Loan Fee. In the event the average closing daily unpaid balances of all Loans hereunder during any calendar
month is less than the Minimum Average Monthly Loan Amount, Borrowers shall pay to Lender a minimum loan fee at a rate per annum
equal to the Contract Rate on the amount by which the Minimum Average Monthly Loan Amount exceeds such average closing daily unpaid
balances. Such fee shall be charged to Borrower’s account on the first day of each month with respect to the prior month.

 

(ii)             
Facility Fee. Borrowers hereby agree to pay Lender a facility fee in an amount equal to one and one-half percent
(1.5%) of the Maximum Revolving Amount on the Closing Date and on each anniversary of the Closing Date which occurs prior to the
Maturity Date. The facility fee for the period ending on the Maturity Date shall be deemed fully earned on the Closing Date and
shall be payable by a charge to Borrower’s account upon the earlier of each anniversary of the Closing Date or the termination
of this Agreement for any reason.

 

(iii)           
Collateral Monitoring Fee. Borrowers shall pay Lender a monthly collateral monitoring fee in an amount equal to one
tenth of one percent (0.10%) of the Maximum Revolving Amount per month, payable on the Closing Date and on the first day of each
month thereafter until the Maturity Date. The Collateral Monitoring Fee for each month ending prior to the Maturity Date shall
be deemed fully earned on the Closing Date and shall be payable by a charge to Borrower’s account upon the earlier of the
first day of each month during the Term or the termination of this Agreement for any reason.

 

(iv)            
Field Examination Fee. Upon Lender’s performance of any collateral monitoring and/or verification including
any field examination, collateral analysis or other business analysis, the need for which is to be determined by Lender and which
monitoring is undertaken by Lender or for Lender’s benefit, an amount equal to the established rate by Lender from time to
time which rate on the Closing Date is $1,250 per day for each person employed to perform such monitoring together with all costs,
disbursements and expenses incurred by Lender and the person performing such collateral monitoring and/or verification shall be
charged to Borrowers’ account.]

 

(v)              
Collection Fees. For purposes of determining the balance of the Loans outstanding, Lender will credit (conditional
upon final collection) all such payments to Borrowers’ account upon receipt by Lender of good funds in dollars of the United
States of America in Lender’s account, provided, however, for purposes of computing interest on the Obligations, Lender will
credit (conditional upon final collection) all such payments to Borrowers’ account three (3) Business Days after receipt
by Lender of good funds in dollars of the United States of America in Lender’s account. Any amount received by Lender after
12:00 noon (New York time) on any Business Day shall be deemed received on the next Business Day.

 

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(vi)            
Overline/Overadvance Fees. Under circumstances where any Borrower requests Revolving Credit Advances which would
exceed the Maximum Revolving Amount and/or the Borrowing Base, Lender may impose fees in connection therewith. Such fees shall
include (i) a monthly fee in the amount of two and one-half percent (2.50%) of the greater of (A) the highest amount by which the
amount Revolving Credit Advances during such month exceeds the Borrowing Base and (B) if any, the amount approved by Lender for
such Revolving Credit Advance in excess of the Borrowing Base for such month and (ii) two and one-half percent (2.50%) of the greater
of (A) the highest amount by which the Revolving Credit Advances during such month exceeds the Maximum Revolving Amount and (B)
if any, the amount approved by Lender for such Revolving Credit Advances in excess of the Maximum Revolving Amount for such month.
Such fees shall be payable on the first day of each month with respect to the preceding calendar month.

 

(vii)         
Wire/Check Fee. For each wire transfer or check issued by Lender, on behalf of a Borrower, Borrowers shall pay Lender
Lender’s standard fee for such service which fee is $45 as of the Closing Date.

 

		VI.	CONDITIONS PRECEDENT

 

6.1                   
Conditions Precedent to Initial Loans. Without limitation of the discretionary nature of each Loan hereunder, the
initial Loan to be made by Lender shall be subject to the fulfillment (to the satisfaction of Lender) of each of the conditions
precedent set forth on Schedule II.

 

6.2                   
Conditions Precedent to each Loan. Without limitation of the discretionary nature of each Loan hereunder, each of
the Loans (including the initial Loan) to be made by Lender shall be subject to the fulfillment (to the satisfaction of Lender)
of each of the following conditions as of the date of each Loan:

 

(a)              
Lender shall have received a Request for Loan for such Loan in form and in substance satisfactory to Lender;

 

(b)              
The representations and warranties set forth in this Agreement and in the other Credit Documents, shall be true and correct
in all material respects on and as of the date of such Loan with the same effect as though made on and as of such date, except
to the extent that any such representation or warranty is expressly stated to relate to a specific earlier date, in which case,
such representation and warranty shall be true and correct as of such earlier date;

 

(c)              
No Default or Event of Default shall have occurred and be continuing at the time of and after giving effect to such Loan;

 

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(d)              
Lender shall have received all fees due and payable on or prior to such date; and

 

(e)              
All legal matters incident to such Loan shall be satisfactory to Lender and its counsel.

 

		VII.	REPRESENTATIONS, WARRANTIES AND COVENANTS

 

To induce Lender to
enter into this Agreement and to make the Loans, each Corporate Credit Party represents and warrants (each of which representations
and warranties shall survive the execution and delivery of this Agreement), and promises to and agrees with Lender until the Termination
Date as follows:

 

7.1                   
Corporate Existence; Compliance with Law. Each Corporate Credit Party: (a) is, as of the Closing Date, and will
continue to be (i) a corporation or limited liability company duly organized, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or formation, (ii) duly qualified to do business and in good standing in each other
jurisdiction where its ownership or lease of property or the conduct of its business requires such qualification, except where
the failure to be so qualified could not reasonably be expected to have a Material Adverse Effect, and (iii) in compliance
with all Requirements of Law and Contractual Obligations, except to the extent failure to comply therewith could not, individually
or in the aggregate, reasonably be expected to have a Material Adverse Effect; and (b) has and will continue to have (i) the
requisite power and authority and the legal right to execute, deliver and perform its obligations under the Credit Documents, and
to own, pledge, mortgage or otherwise encumber and operate its properties, to lease the property it operates under lease, and to
conduct its business as now, heretofore or proposed to be conducted, and (ii) all licenses, permits, franchises, rights, powers,
consents or approvals from or by all Persons or Governmental Authorities having jurisdiction over Borrowers which are necessary
or appropriate for the conduct of its business, except to the extent failure to have any such licenses, permits, franchises, rights,
powers, consents or approvals could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

7.2                   
Names; Organizational Information; Collateral Locations. Disclosure Schedule 7.2 sets forth each Corporate
Credit Party’s name as it appears in official filing in the state of its incorporation or other organization, the type of
entity of each Corporate Credit Party, the state of each Corporate Credit Party’s incorporation or organization and organizational
identification number issued by each Corporate Credit Party’s state of incorporation or organization or a statement that
no such number has been issued. The location of each Corporate Credit Party’s chief executive office, corporate offices,
warehouses, other locations of Collateral and locations where records with respect to Collateral are kept (including in each case
the county of such locations) are as set forth in Disclosure Schedule 7.2 and the Perfection Certificate submitted to Lender
as attached hereto and, except as set forth in such Disclosure Schedule, such locations have not changed during the preceding twelve
months. With respect to each of the premises identified in Disclosure Schedule 7.2 and the Perfection Certificate submitted
to Lender as attached hereto, on or prior to the Closing Date a bailee, landlord or mortgagee agreement acceptable to Lender has
been obtained. As of the Closing Date, during the prior five years, except as set forth in Disclosure Schedule 7.2, and
the Perfection Certificate submitted to Lender as attached hereto, no Corporate Credit Party shall have been known as or conducted
business in any other name (including trade names).

 

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7.3                   
Power; Authorization; Enforceable Obligations. The execution, delivery and performance by each Credit Party of the
Credit Documents to which it is a party, and the creation of all Liens provided for herein and therein: (a) are and will continue
to be within such Credit Party’s power and authority; (b) have been and will continue to be duly authorized by all necessary
or proper action; (c) are not and will not be in violation of any Requirement of Law or Contractual Obligation of such Credit Party;
(d) do not and will not result in the creation or imposition of any Lien (other than Permitted Liens) upon any of the Collateral;
and (e) do not and will not require the consent or approval of any Governmental Authority or any other Person. As of the Closing
Date, each Credit Document shall have been duly executed and delivered on behalf of each Credit Party, and each such Credit Document
upon such execution and delivery shall be and will continue to be a legal, valid and binding obligation of each Credit Party, enforceable
against it in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency and other similar
laws affecting creditors’ rights generally.

 

7.4                   
Financial Statements and Projections; Books and Records.

 

(a)              
The Financial Statements delivered by each Corporate Credit Party to Lender for its most recently ended Fiscal Year and
Fiscal Quarter, are true, correct and complete and reflect fairly and accurately the financial condition of such Corporate Credit
Party as of the date of each such Financial Statement in accordance with GAAP. Except as reflected in the Financial Statements
and/or on Disclosure Schedule 9(b), no Corporate Credit Party has obligations for borrowed funds or long term capital leases or
other liabilities for the payment of money except nominal accruals for operating expenses not exceeding $50,000 in the aggregate.
The Projections most recently delivered by each Corporate Credit Party to Lender have been prepared in good faith, with care and
diligence and use assumptions that are reasonable under the circumstances at the time such Projections were prepared and as of
the date delivered to Lender and all such assumptions are disclosed in the Projections.

 

(b)              
Each Corporate Credit Party shall keep adequate Books and Records with respect to the Collateral and its business activities
in which proper entries, reflecting all financial transactions, and payments and credits received on, and all other dealings with,
the Collateral, will be made in accordance with GAAP and all Requirements of Law and on a basis consistent with the Financial Statements.

 

7.5                   
Material Adverse Change. Between the date of each Corporate Credit Party’s most recent Financial Statements
delivered to Lender and the Closing Date: (a) no Corporate Credit Party has incurred any obligations, contingent or non-contingent
liabilities, or liabilities for Charges, long-term leases or unusual forward or long-term commitments which are not reflected in
the Projections delivered on the Closing Date and which could, alone or in the aggregate, reasonably be expected to have a Material
Adverse Effect; (b) there has been no material deviation from such Projections; and (c) no events have occurred which alone or
in the aggregate has had or could reasonably be expected to have a Material Adverse Effect. No Requirement of Law or Contractual
Obligation of any Corporate Credit Party has or have had or could reasonably be expected to have a Material Adverse Effect. No
Corporate Credit Party is in default, and to each Corporate Credit Party’s knowledge no third party is in default, under
or with respect to any of its Contractual Obligations, which alone or in the aggregate has had or could reasonably be expected
to have a Material Adverse Effect.

 

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7.6                   
Real Estate; Property. The real estate listed in Disclosure Schedule 7.6 constitutes all of the real property
owned, leased, or used by each Corporate Credit Party in its business (the “Real Property”), and no Corporate
Credit Party will execute any material agreement or contract in respect of such real estate after the date of this Agreement without
giving Lender prompt prior written notice thereof. Each Corporate Credit Party holds and will continue to hold good and marketable
fee simple title to all of its owned real estate, and good and marketable title to all of its other properties and assets, and
valid and insurable leasehold interests in all of its leases (both as lessor and lessee, sublessee or assignee), and none of the
properties and assets of any Corporate Credit Party are or will be subject to any Liens, except Permitted Liens.

 

7.7                   
Ventures, Subsidiaries and Affiliates; Outstanding Stock and Indebtedness. Except as set forth in Disclosure Schedule
7.7, as of the Closing Date, no Corporate Credit Party has any Subsidiaries, is not engaged in any joint venture or partnership
with any other Person, or is an Affiliate of any other Person. All of the issued and outstanding Stock of each Corporate Credit
Party (including all rights to purchase, options, warrants or similar rights or agreements pursuant to which any Corporate Credit
Party may be required to issue, sell, repurchase or redeem any of its Stock) as of the Closing Date is owned by each of the Stockholders
(and in the amounts) set forth on Disclosure Schedule 7.7 or is disclosed on such Disclosure Schedule 7.7 as issued
by a public company. All outstanding Indebtedness of each Corporate Credit Party as of the Closing Date is described in Disclosure
Schedule 9(b).

 

7.8                   
Government Regulation; Margin Regulations. No Corporate Credit Party is subject to or regulated under or any federal
or state statute, rule or regulation that restricts or limits any Corporate Credit Party’s ability to incur Indebtedness,
pledge its assets, or to perform its obligations under the Credit Documents. The making of a Loan, the application of the proceeds
and repayment thereof, and the consummation of the transactions contemplated by the Credit Documents do not and will not violate
any Requirement of Law. No Corporate Credit Party is engaged, nor will it engage in the business of extending credit for the purpose
of “purchasing” or “carrying” any “margin security” as such terms are defined in Regulation
U of the Federal Reserve Board as now and hereafter in effect (such securities being referred to herein as “Margin Stock”).
No Corporate Credit Party owns Margin Stock, and none of the proceeds of any Loan or other extensions of credit under any Credit
Document will be used, directly or indirectly, for the purpose of purchasing or carrying any Margin Stock or reducing or retiring
any Indebtedness which was originally incurred to purchase or carry any Margin Stock. No Corporate Credit Party will take or permit
to be taken any action which might cause any Credit Document to violate any regulation of the Federal Reserve Board.

 

7.9                   
Taxes; Charges. Except as disclosed on Disclosure Schedule 7.9 all tax returns, reports and statements required
by any Governmental Authority to be filed by each Corporate Credit Party have, as of the Closing Date, been filed and will, until
the Termination Date, be filed with the appropriate Governmental Authority and no tax Lien has been filed against each Corporate
Credit Party or any of each Corporate Credit Party’s property. Proper and accurate amounts have been and will be withheld
by each Corporate Credit Party from its employees for all periods in complete compliance with all Requirements of Law and such
withholdings have and will be timely paid to the appropriate Governmental Authorities. Disclosure Schedule 7.9 sets forth
as of the Closing Date those taxable years for which each Corporate Credit Party’s tax returns are currently being audited
by the IRS or any other applicable Governmental Authority and any assessments or threatened assessments in connection with such
audit, or otherwise currently outstanding. Except as described on Disclosure Schedule 7.9, no Corporate Credit Party nor
its respective predecessors are liable for any Charges: (a) under any agreement (including any tax sharing agreements or agreement
extending the period of assessment of any Charges) or (b) to any Corporate Credit Party’s knowledge, as a transferee. As
of the Closing Date, no Corporate Credit Party has agreed or been requested to make any adjustment under IRC Section 481(a), by
reason of a change in accounting method or otherwise, which could reasonably be expected to have a Material Adverse Effect.

 

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7.10               
Payment of Obligations. Each Credit Party will pay, discharge or otherwise satisfy at or before maturity or before
they become delinquent, as the case may be, all of its Charges and other obligations of whatever nature, except payments to vendors
or suppliers in the ordinary course of business consistent with past practice or where the amount or validity thereof is currently
being contested in good faith by appropriate proceedings and reserves in conformity with GAAP with respect thereto have been provided
on the books of such Credit Party and none of the Collateral is or could reasonably be expected to become subject to any Lien or
forfeiture or loss as a result of such contest.

 

7.11               
ERISA. No ERISA Event has occurred or is reasonably expected to occur that, when taken together with all other existing
ERISA Events, could reasonably be expected to result in a liability of any Corporate Credit Party of more than the Minimum Actionable
Amount. The present value of all accumulated benefit obligations of any Corporate Credit Party under each Plan (based on the assumptions
used for purposes of Statement of Financial Accounting Standards No. 87) did not, as of the date of the most recent Financial Statements
reflecting such amounts, exceed the fair market value of the assets of such Plan by more than the Minimum Actionable Amount, and
the present value of all accumulated benefit obligations of all underfunded Plans (based on the assumptions used for purposes of
Statement of Financial Account Standards No. 87) did not, as of the date of the most recent Financial Statements reflecting such
amounts, exceed the fair market value of the assets of such underfunded Plans by more than the Minimum Actionable Amount. No Corporate
Credit Party has incurred or reasonably expects to incur any Withdrawal Liability in excess of the Minimum Actionable Amount.

 

7.12               
Litigation. No Litigation is pending or, to the knowledge of any Corporate Credit Party, threatened by or against
any Corporate Credit Party or against any Corporate Credit Party’s properties or revenues (a) with respect to any of the
Credit Documents or any of the transactions contemplated hereby or thereby, or (b) which could reasonably be expected to have a
Material Adverse Effect. Except as set forth on Disclosure Schedule 7.12, as of the Closing Date there is no Litigation
pending or, to the knowledge of any Corporate Credit Party, threatened against any Corporate Credit Party which seeks damages in
excess of the Minimum Actionable Amount or injunctive relief or alleges criminal misconduct of any Corporate Credit Party. Each
Corporate Credit Party shall notify Lender in writing within five (5) Business Days of learning of the existence, threat or commencement
of any Litigation against any Corporate Credit Party or any Plan or any allegation of criminal misconduct against any Corporate
Credit Party.

 

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7.13               
Intellectual Property. As of the Closing Date, all material Intellectual Property owned or used by each Corporate
Credit Party is listed, together with application or registration numbers, where applicable, in Disclosure Schedule 7.13.
Each Corporate Credit Party is the sole legal and beneficial owner, or is licensed on commercial terms to use, all Intellectual
Property necessary to conduct its business as currently conducted except for such Intellectual Property the failure of which to
own or license could not reasonably be expected to have a Material Adverse Effect. Each Corporate Credit Party will maintain the
patenting and registration of all Intellectual Property with the United States Patent and Trademark Office, the United States Copyright
Office, or other appropriate Governmental Authority and each Corporate Credit Party will promptly patent or register, as the case
may be, all new Intellectual Property material to the operation of their respective businesses where applicable and notify Lender
in writing five (5) Business Days prior to filing any such new patent or registration. With respect to Intellectual Property licensed
by each Corporate Credit Party, an agreement acceptable to Lender from the licensor of such Intellectual Property will be obtained
permitting Lender to use such Intellectual Property or sell the Goods containing such Intellectual Property following the occurrence
of a Default. No Corporate Credit Party is aware of any infringement on the Intellectual Property of any third party in the carrying
on of its business in the normal course.

 

7.14               
Full Disclosure. No information contained in any Credit Document, the Financial Statements or any written statement
furnished by or on behalf of any Corporate Credit Party under any Credit Document, or to induce Lender to execute the Credit Documents,
contains any untrue statement of a material fact or omits to state a material fact necessary to make the statements contained herein
or therein not misleading in light of the circumstances under which they were made.

 

7.15               
Hazardous Materials. Except as set forth on Disclosure Schedule 7.15, as of the Closing Date, (a) each Real
Property is maintained free of contamination from any Hazardous Material, (b) no Corporate Credit Party is subject to any Environmental
Liabilities or, to any Corporate Credit Party’s knowledge, potential Environmental Liabilities, in excess of the Minimum
Actionable Amount in the aggregate, (c) no notice has been received by any Corporate Credit Party identifying it as a “potentially
responsible party” or requesting information under CERCLA or analogous state statutes, and to the knowledge of any Corporate
Credit Party, there are no facts, circumstances or conditions that may result in such Corporate Credit Party being identified as
a “potentially responsible party” under CERCLA or analogous state statutes; and (d) each Corporate Credit Party has
provided to Lender copies of all existing environmental reports, reviews and audits and all written information pertaining to actual
or potential Environmental Liabilities, in each case relating to any Corporate Credit Party. Each Corporate Credit Party: (i) shall
comply in all material respects with all applicable Environmental Laws and environmental permits; (ii) shall notify Lender in writing
within seven days if and when it becomes aware of any Release, on, at, in, under, above, to, from or about any of its Real Property;
and (iii) shall promptly forward to Lender a copy of any order, notice, permit, application, or any communication or report received
by it or any Corporate Credit Party in connection with any such Release.

 

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7.16               
Insurance. As of the Closing Date, Disclosure Schedule 7.16 lists all insurance of any nature maintained for
current occurrences by Borrowers, as well as a summary of the terms of such insurance. Each Corporate Credit Party other than Digirad
Corporation shall deliver to Lender certified copies and endorsements to all of its (a) “All Risk” and business interruption
insurance policies naming Lender as loss payee, and (b) general liability and other liability policies naming Lender as an additional
insured. All policies of insurance on real and personal property will contain an endorsement, in form and substance acceptable
to Lender, showing loss payable to Lender (Form 438 BFU or equivalent) and extra expense, replacement value for all occupied Real
Estate locations and business interruption endorsements. Such endorsement, or an independent instrument furnished to Lender, will
provide that the insurance companies will give Lender at least thirty (30) days prior written notice before any such policy or
policies of insurance shall be altered or canceled and that no act or default of any Corporate Credit Party or any other Person
shall affect the right of Lender to recover under such policy or policies of insurance in case of loss or damage. Each Borrower
shall direct all present and future insurers under its “All Risk” policies of insurance to pay all proceeds payable
thereunder directly to Lender. If any insurance proceeds are paid by check, draft or other instrument payable to any Corporate
Credit Party and Lender jointly, Lender may endorse each Corporate Credit Party’s name thereon and do such other things as
Lender may deem advisable to reduce the same to cash. Lender reserves the right at any time, upon review of any Corporate Credit
Party’s risk profile, to require additional forms and limits of insurance. Each Corporate Credit Party shall, on each anniversary
of the Closing Date and from time to time at Lender’s request, deliver to Lender a report by a reputable insurance broker,
satisfactory to Lender, with respect to such Person’s insurance policies.

 

7.17               
Deposit and Disbursement Accounts. Disclosure Schedule 7.17 lists all banks and other financial institutions
at which each Corporate Credit Party, maintains deposits and/or other accounts and correctly identifies the name, address and telephone
number of each such depository, the name in which the account is held, a description of the purpose of the account, and the complete
account number.

 

7.18         
Accounts. No Borrower has made, nor will any Borrower make, any agreement with any Account Debtor for any extension
of time for the payment of any Account, any compromise or settlement for less than the full amount thereof, any release of any
Account Debtor from liability therefor, or any deduction therefrom except a discount or allowance for prompt or early payment allowed
by a Borrower and such other compromises or settlements in the ordinary course of its business consistent with historical practice
and as previously disclosed to Lender in writing. With respect to the Accounts pledged as collateral pursuant to any Credit Document
(a) the amounts shown on all invoices, statements and reports which may be delivered to the Lender with respect thereto are actually
and absolutely owing to a Borrower as indicated thereon and are not in any way contingent; (b) no payments have been or shall be
made thereon except payments immediately delivered to Lender as required hereunder; and (c) to each Corporate Credit Party’s
knowledge all Account Debtors have the capacity to contract. As of the date of each Borrowing Base Certificate delivered to Lender,
each Account listed thereon as an Eligible Account shall be an Eligible Account and all Inventory listed thereon as Eligible Inventory
shall be Eligible Inventory. Each Borrower shall notify Lender promptly and in any event within two (2) Business Days after obtaining
knowledge thereof (i) of any event or circumstance that to any Borrower’s knowledge would cause Lender to consider any then
existing Account or Inventory as no longer constituting an Eligible Account or Eligible Inventory, as the case may be; (ii) of
any material delay in any Borrower’s performance of any of its obligations to any Account Debtor; (iii) of any assertion
by an Account Debtor of any material claims, offsets or counterclaims; (iv) of any allowances, credits and/or monies granted by
any Borrower to any Account Debtor; (v) of all material adverse information relating to the financial condition of an Account Debtor;
(vi) of any material return of goods; and (vii) of any loss, damage or destruction of any of the Collateral.

 

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7.19               
Conduct of Business. Each Corporate Credit Party (a) shall conduct its business substantially as now conducted or
as otherwise permitted hereunder, and (b) shall at all times maintain, preserve and protect all of the Collateral where applicable
and each Corporate Credit Party’s other property, used or useful in the conduct of its business and keep the same in good
repair, working order and condition and make, or cause to be made, all necessary or appropriate repairs, replacements and improvements
thereto consistent with industry practices.

 

7.20               
Further Assurances. At any time and from time to time, upon the written request of Lender and at the sole expense
of Credit Parties, each Credit Party shall promptly and duly execute and deliver any and all such further instruments and documents
and take such further action as Lender may reasonably deem desirable (a) to obtain the full benefits of this Agreement and the
other Credit Documents, (b) to protect, preserve and maintain Lender’s rights in any Collateral, or (c) to enable Lender
to exercise all or any of the rights and powers herein granted.

 

		VIII.	FINANCIAL REPORTS; FINANCIAL COVENANTS

 

8.1                   
Reports and Notices. From the Closing Date until the Termination Date, each Borrower shall deliver to Lender:

 

(a)              
within twenty (20) days following the end of each Fiscal Month, a Monthly Statement Report of such Borrower in the form
of Exhibit B as of the last day of the previous Fiscal Month;

 

(b)              
within twenty (20) days following the end of each Fiscal Month, the Financial Statements for such Fiscal Month of such Borrower,
which shall provide comparisons to budget and actual results for the corresponding period during the prior Fiscal Year, both on
a monthly and year-to-date basis, and accompanied by a certification in the form of Exhibit D by the Chief Executive Officer
or Chief Financial Officer of Borrowing Representative that such Financial Statements are complete and correct, that there was
no Default (or specifying those Defaults of which he or she was aware), showing in reasonable detail the calculations used in determining
compliance with the financial covenants hereunder; and containing such reporting information required and as set forth on Schedule
VI certified as true and correct by the President or Chief Financial Officer of each Borrower;

 

(c)              
within ninety (90) days following the close of each Fiscal Year, the Financial Statements of Digirad Corporation for such
Fiscal Year prepared in accordance with GAAP and audited and certified by an independent certified accounting firm acceptable to
Lender (as of the Closing Date, BDO USA, LLP shall be deemed acceptable to Lender) which shall provide comparisons to the prior
Fiscal Year, and shall be accompanied by (i) a statement in reasonable detail showing the calculations used in determining compliance
with the financial covenants hereunder, (ii) a report from Digirad Corporation’s accountants to the effect that in connection
with their audit examination nothing has come to their attention to cause them to believe that a Default has occurred or specifying
those Defaults of which they are aware, and (iii) any management letter that may be issued;

 

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(d)              
at least thirty (30) days before the beginning of each Fiscal Year of each Borrower, the Projections, each in reasonable
detail, representing such Borrower’s good faith Projections and certified by such Borrower’s President or Chief Financial
Officer (or officers having corresponding functions and responsibilities) as being the most accurate Projections available and
identical to the Projections used by such Borrower for internal planning purposes, together with such supporting schedules and
information as Lender may in its discretion require;

 

(e)              
together with each request for a Loan (but in no event later than the third day of each month) and at such intervals as
Lender may request a Borrowing Base Certificate as of the last day of the immediately preceding Fiscal Month detailing eligible
and ineligible Accounts, and Inventory of adjustment to the Formula Amount, and containing such reporting information required
and as set forth on Schedule VI, certified as true and correct by the President or Chief Financial Officer of each Borrower;

 

(f)               
together with each request for a Loan and accompanying each Borrowing Base Certificate (but in no event later than the third
day of each month) and at such other intervals as Lender may require: (i) copies of all entries to the sales journal and the cash
receipt journal; (ii) copies of all credit memos; (iii) copies of invoices randomly selected by Lender, together with information
on balances, payments, and proof of delivery; and containing such reporting information required and as set forth on Schedule VI
certified as true and correct by the President or Chief Financial Officer of each Borrower;

 

(g)              
promptly following Lender’s request, receivable schedules, copies of invoices to Account Debtors, shipping documents,
delivery receipts and such other material, reports, records or information as Lender may request;

 

(h)              
promptly upon their distribution, copies of all financial statements, reports and proxy statements which any Borrower shall
have sent to its stockholders, promptly after the sending or filing thereof, copies of all regular and periodic reports which any
Credit Party shall file with the Securities and Exchange Commission or any national securities exchange; and

 

(i)                
each Borrower will cause each Guarantor to comply with the financial reporting requirements set forth in their respective
Guaranties.

 

8.2                   
Financial Covenants. No Borrower or Corporate Credit Party shall breach any of the financial covenants set forth
in Schedule III.

 

8.3                   
Other Reports and Information. Borrower Representative shall advise Lender promptly, in reasonable detail, of: (a)
any Lien, other than Permitted Liens, attaching to or asserted against any of the Collateral or any occurrence causing a material
loss or decline in value of any Collateral and the estimated (or actual, if available) amount of such loss or decline; (b) any
material change in the composition of the Collateral; and (c) the occurrence of any Default, Event of Default or other event which
has had or could reasonably be expected to have a Material Adverse Effect. Each Corporate Credit Party shall, upon request of Lender,
furnish to Lender such other reports and information in connection with the affairs, business, financial condition, operations,
prospects or management of such Corporate Credit Party or the Collateral as Lender may request, all in reasonable detail. If any
internally prepared financial information, including that required under Section 8.1 is unsatisfactory in any manner to Lender,
Lender may request that the Borrower’s independent certified accountants review the same.

 

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8.4                   
Good Standing Certificates. Together with the delivery of the Financial Statements referred to in Section 8.1(c),
each Corporate Credit Party shall provide to Lender a certificate of good standing from its state of incorporation or organization.

 

		IX.	NEGATIVE COVENANTS

 

Each Corporate Credit
Party, (other than Digirad Corporation, Lone Star Value Management, LLC and Lone Star Value Co-Invest I, LP) covenants and agrees
that, without Lender’s prior written consent, from the Closing Date until the Termination Date, such Credit Party shall not,
directly or indirectly, by operation of law or otherwise:

 

(a)              
form any Subsidiary or merge with, consolidate with, acquire all or substantially all of the assets or capital stock of,
or otherwise combine with or make any investment in or divide, or, except as provided in clause 9(c) below, loan or advance to,
any Person;

 

(b)              
cancel any debt owing to it or create, incur, assume, guaranty, or permit to exist any Indebtedness without the prior written
consent of Lender, except: (i) the Obligations, (ii) Indebtedness existing as of the Closing Date set forth on Disclosure Schedule
9(b); provided, however, that payments to Lone Star Value Co-Invest I, LP, Lone Star Value Management, LLC and Jeffrey E. Eberwein
set forth therein are otherwise restricted by the terms of their respective Subordination Agreement or by the terms of this Agreement
and shall otherwise not be paid using the proceeds of the Loans, (iii) deferred taxes, (iv) by endorsement of instruments or items
of payment for deposit to the general account of Borrower, (v) for Guaranteed Indebtedness incurred for the benefit of a Borrower
if the primary obligation is permitted by this Agreement; (vi) Purchase Money Indebtedness; and (vii) Indebtedness to trade creditors
and operating expense accruals in the normal course of business;

 

(c)              
enter into any lending, borrowing or other commercial transaction with any of its employees, directors or Affiliates (including
upstreaming and downstreaming of cash and intercompany loan and advances) other than (i) loans or advances to employees in the
ordinary course of business in an aggregate outstanding amount not exceeding the Minimum Actionable Amount, or (ii) Subordinated
Debt, (provided, however, that notwithstanding anything to the contrary in the preceding clauses (i) and (ii), or elsewhere herein,
Digirad Corporation is not restricted in paying any obligations of its direct and indirect subsidiaries and, in particular, Digirad
Corporation may pay these obligations by making either a (i) equity contribution to ATRM Holdings, Inc. or (ii) loan to ATRM Holdings,
Inc. subject to the applicable Subordination Agreement to enable ATRM Holdings, Inc. to pay up to $300,000 of the expenses of each
of KBS Builders, Inc. and EdgeBuilder, Inc./Glenbrook Building Supply, Inc. provided that: (x) prior notice together with copies
of applicable invoice/statement is given to Lender; (y) there then exists no Event of Default at the time of such payment or as
a result thereof; and (z) an overadvance is not created as a result of such payment);

 

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(d)              
make any changes in any of its business objectives, purposes, or operations which could reasonably be expected to adversely
affect repayment of the Obligations or could reasonably be expected to have a Material Adverse Effect or engage in any business
other than that presently engaged in or proposed to be engaged in the Projections delivered to Lender on the Closing Date or amend
its charter or by-laws or other organizational documents;

 

(e)              
create or permit any Lien on any of its properties or assets, except for Permitted Liens;

 

(f)               
sell, transfer, issue, convey, assign or otherwise dispose of any of its assets or properties, including its Accounts or
any shares of its Stock (which restriction shall not apply to public sale of stock of Digirad Corporation) or engage in any sale-leaseback,
synthetic lease or similar transaction (provided, that the foregoing shall not prohibit the sale of Inventory or obsolete or unnecessary
Equipment in the ordinary course of its business);

 

(g)              
change its name, state of incorporation or organization, chief executive office, corporate offices, warehouses or other
Collateral locations, or location of its records concerning the Collateral, or acquire, lease or use any real estate after the
Closing Date without such Corporate Credit Party, in each instance, giving thirty (30) days prior written notice thereof to Lender
and taking all actions deemed necessary or appropriate by Lender to continuously protect and perfect Lender’s Liens upon
the Collateral or store or hold any assets of another Person;

 

(h)              
establish any depository or other bank account of any kind with any financial institution (other than the accounts set forth
on Disclosure Schedule 7.17) without Lender’s prior written consent and then only after such Corporate Credit Party
has implemented agreements with such bank or other institution and Lender acceptable to Lender; or

 

(i)                
make or permit any Restricted Payment other than (i) interest and principal, when due without acceleration or modification
of the amortization as in effect on the Closing Date, under Indebtedness (not including Subordinated Debt, payments of which shall
be permitted only in accordance with the terms of the relevant Subordination Agreement made in favor of Lender) described in Disclosure
Schedule (9(b)) or otherwise permitted under Article IX(b)(vi) and (ii) so long as (x) the tax status of such Corporate
Credit Party is a pass thru or disregarded entity within the meaning of the Internal Revenue Code of 1986, as amended, (y) no Default
or Event of Default shall have occurred and be continuing and (z) after first providing such supporting documentation as Lender
may request (including the personal state and federal tax returns of each Stockholder), such Credit Party may pay Pass Thru Distributions
not exceeding Pass Thru Tax Liabilities. Payments to Stockholders shall be made so as to be available when the tax is due, including
in respect of estimated tax payments.

 

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		X.	SECURITY INTEREST

 

10.1               
Grant of Security Interest.

 

(a)              
As collateral security for the prompt and complete payment and performance of all of the Obligations, each Corporate Credit
Party executing this Agreement hereby grants to the Lender a security interest in and Lien upon all of its property and assets,
whether real or personal, tangible or intangible, and whether now owned or hereafter acquired, or in which it now has or at any
time in the future may acquire any right, title, or interest, including all of the following property in which it now has or at
any time in the future may acquire any right, title or interest: all Accounts; all Deposit Accounts and all funds on deposit therein;
all cash and cash equivalents; all commodity contracts; all investments, Stock and Investment Property; all Inventory; all Equipment;
all Goods; all Chattel Paper, all Documents; all Instruments; all Books and Records; all General Intangibles; each Life Insurance
Policy; all Supporting Obligations; all Letter-of-Credit Rights; and to the extent not otherwise included, all Proceeds and products
of all and any of the foregoing and all collateral security and guarantees given by any Person with respect to any of the foregoing,
but excluding in all events Hazardous Waste (all of the foregoing, together with any other collateral pledged to the Lender pursuant
to any other Credit Document, collectively, the “Collateral”).

 

(b)              
Each Corporate Credit Party executing this Agreement and Lender agree that this Agreement creates, and is intended to create,
valid and continuing Liens upon the Collateral in favor of Lender. Each such Corporate Credit Party represents, warrants and promises
to Lender that: (i) such Corporate Credit Party is the sole owner of each item of the Collateral upon which it purports to grant
a Lien pursuant to the Credit Documents, and has good and marketable title thereto free and clear of any and all Liens or claims
of others, other than Permitted Liens; (ii) the security interests granted pursuant to this Agreement will constitute valid perfected
security interests in all of the Collateral in favor of Lender as security for the prompt and complete payment and performance
of the Obligations, enforceable in accordance with the terms hereof against any and all creditors of and purchasers from such Corporate
Credit Party (other than purchasers of Inventory in the ordinary course of business) and such security interests are prior to all
other Liens on the Collateral in existence on the date hereof except for Permitted Liens which have priority by operation of law;
and (iii) no effective security agreement, financing statement, equivalent security or Lien instrument or continuation statement
covering all or any part of the Collateral is or will be on file or of record in any public office, except those relating to Permitted
Liens. Each Corporate Credit Party executing this Agreement promises to defend the right, title and interest of Lender in and to
the Collateral against the claims and demands of all Persons whomsoever, and each Corporate Credit Party shall take such actions,
including (x) upon request by Lender, the prompt delivery of all negotiable Documents, original Instruments, Chattel Paper and
certificated Stock owned by such Corporate Credit Party to Lender, (y) notification of Lender’s interest in Collateral at
Lender’s request, and (z) the institution of litigation against third parties as shall be prudent in order to protect and
preserve such Credit Party’s and Lender’s respective and several interests in the Collateral. Each Corporate Credit
Party executing this Agreement shall mark its Books and Records pertaining to the Collateral to evidence the Credit Documents and
the Liens granted under the Credit Documents. All Chattel Paper shall be marked with the following legend: “This writing
and the obligations evidenced or secured hereby are subject to the security interest of Gerber Finance Inc.”

 

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(c)              
Each Corporate Credit Party executing this Agreement shall obtain or use its best efforts to obtain waivers or subordinations
of Liens from landlords and mortgagees, and each Corporate Credit Party shall in all instances obtain signed acknowledgments of
Lender’s Liens from bailees having possession of such Corporate Credit Party’s Goods that they hold for the benefit
of Lender.

 

(d)              
Each Corporate Credit Party executing this Agreement shall obtain authenticated control letters from each issuer of uncertificated
securities, securities intermediary, or commodities intermediary issuing or holding any financial assets or commodities to or for
such Credit Party.

 

(e)              
Each Corporate Credit Party executing this Agreement shall establish and maintain the cash management system described in
Schedule IV. All payments on account of the Obligations required by Sections 3.1 and 10.2 hereof shall be
made to or deposited in the blocked account described in Schedule IV in accordance with the terms thereof.

 

(f)               
Each Corporate Credit Party executing this Agreement shall promptly, and in any event within two (2) Business Days after
becoming a beneficiary under a letter of credit, notify Lender thereof and enter into a tri-party agreement with Lender and the
issuer and/or confirmation bank with respect to Letter-of-Credit Rights assigning such Letter-of-Credit Rights to Lender and directing
all payments thereunder to Lender, all in form and substance reasonably satisfactory to Lender.

 

(g)              
Each Corporate Credit Party executing this Agreement shall take all steps necessary to grant Lender control of all electronic
chattel paper in accordance with the UCC and all “transferable records” as defined in each of the Uniform Electronic
Transactions Act and the Electronic Signatures in Global and National Commerce Act.

 

(h)              
Each Corporate Credit Party executing this Agreement hereby irrevocably authorizes Lender at any time and from time to time
to file in any filing office in any Uniform Commercial UCC jurisdiction any initial financing statements and amendments thereto
that (i) indicate the Collateral (x) as all assets of such Corporate Credit Party or words of similar effect, regardless of whether
any particular asset comprised in the Collateral falls within the scope of Article 9 of the UCC or such jurisdiction, or (y) as
being of an equal or lesser scope or with greater detail, and (ii) contain any other information required by Part 5 of Article
9 of the UCC or the filing office for acceptance of any financing statement or amendment, including whether each Corporate Credit
Party is an organization, the type of organization and any organization identification number issued to each Corporate Credit Party,
and in the case of a financing statement filed as a fixture filing or indicating Collateral as as-extracted collateral or timber
to be cut, a sufficient description of real property to which the Collateral relates. Each Corporate Credit Party agrees to furnish
any such information to Lender promptly upon request. Each Corporate Credit Party also ratifies its authorization for Lender to
have filed any initial financing statements or amendments thereto if filed prior to the date hereof.

 

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(i)                
Each Corporate Credit Party shall promptly, and in any event within two (2) Business Days after the same is acquired by
it, notify Lender of any commercial tort claim (as defined in the UCC) acquired by it and unless otherwise consented by Lender,
each Corporate Credit Party shall enter into a supplement to this Agreement, granting to Lender a Lien in such commercial tort
claim.

 

(j)                
It is the intent of each Corporate Credit Party and Lender that none of the Collateral other than as set forth in the Mortgage,
is or shall be regarded as Fixtures and each Corporate Credit Party represents and warrants that it has not made and is not bound
by any lease or other agreement that is inconsistent with such intent. Nevertheless, if the Collateral or any part thereof is or
is to become attached or affixed to any real estate, each Corporate Credit Party will, upon request, furnish Lender with a disclaimer
or subordination in form satisfactory to Lender of their interests in the Collateral from all Persons having an interest in the
real estate to which the Collateral is attached or affixed, together with the names and addresses of the record owners of, and
all other persons having interest in, and a general description of, such real estate.

 

10.2               
Lender’s Rights.

 

(a)              
Lender may, (i) at any time in Lender’s own name or in the name of each Corporate Credit Party, communicate with Account
Debtors, parties to Contracts, and obligors in respect of Instruments, Chattel Paper or other Collateral to verify to Lender’s
satisfaction, the existence, amount and terms of any such Accounts, Contracts, Instruments or Chattel Paper or other Collateral,
and (ii) at any time and without prior notice to any Corporate Credit Party notify Account Debtors, parties to Contracts, and obligors
in respect of Chattel Paper, Instruments, or other Collateral that the Collateral has been assigned to Lender and that payments
shall be made directly to Lender. Upon the request of Lender, each Corporate Credit Party shall so notify such Account Debtors,
parties to Contracts, and obligors in respect of Instruments, Chattel Paper or other Collateral. Each Corporate Credit Party hereby
constitutes Lender or Lender’s designee such Corporate Credit Party’s attorney with power to endorse such Corporate
Credit Party’s name upon any notes, acceptance drafts, money orders or other evidences of payment or Collateral. The provisions
of this Section as relate to KBS Builders, Inc. supplement those in Loan and Security Agreement dated February 23, 2016, as amended.

 

(b)              
Each Corporate Credit Party shall remain liable under each Contract, Instrument and License to observe and perform all the
conditions and obligations to be observed and performed by it thereunder, and Lender shall have no obligation or liability whatsoever
to any Person under any Contract, Instrument or License (between any Borrower and any Person other than Lender) by reason of or
arising out of the execution, delivery or performance of this Agreement, and Lender shall not be required or obligated in any manner
(i) to perform or fulfill any of the obligations of Borrower, (ii) to make any payment or inquiry, or (iii) to take any action
of any kind to collect, compromise or enforce any performance or the payment of any amounts which may have been assigned to it
or to which it may be entitled at any time or times under or pursuant to any Contract, Instrument or License.

 

(c)              
Each Corporate Credit Party shall, with respect to each owned, leased, or controlled property (including public warehouses),
during normal business hours and upon reasonable advance notice (unless a Default or Event of Default shall have occurred and be
continuing, in which event no notice shall be required and Lender shall have access at any and all times): (i) provide access to
such property to Lender and any of its officers, employees and agents, as frequently as Lender determines to be appropriate; (ii)
permit Lender and any of its officers, employees and agents to inspect, audit and make extracts and copies from all of such Corporate
Credit Party’s Books and Records; and (iii) permit Lender to inspect, review, evaluate and make physical verifications and
appraisals of the Inventory and other Collateral in any manner and through any medium that Lender considers advisable, and each
Corporate Credit Party agrees to render to Lender, at Borrowers’ cost and expense, such clerical and other assistance as
may be reasonably requested with regard thereto.

 

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(d)              
After the occurrence and during the continuance of a Default or Event of Default, each Corporate Credit Party at its own
expense, shall cause the certified public accountant then engaged by any Borrower to prepare and deliver to Lender at any time
and from time to time, promptly upon Lender’s request, the following reports: (i) a reconciliation of all Accounts; (ii)
an aging of all Accounts; (iii) trial balances; and (iv) test verifications of such Accounts as Lender may request. Each Corporate
Credit Party at its own expense, shall cause its certified independent public accountants to deliver to Lender the results of any
physical verifications of all or any portion of the Inventory made or observed by such accountants when and if such verification
is conducted. Lender shall be permitted to observe and consult with such Corporate Credit Party’s accountants in the performance
of these tasks.

 

10.3         
Lender’s Appointment as Attorney-in-Fact. On the Closing Date, each Corporate Credit Party shall execute and
deliver a Power of Attorney in the form attached as Exhibit E. The power of attorney granted pursuant to the Power of Attorney
and all powers granted under any Credit Document are powers coupled with an interest and shall be irrevocable until the Termination
Date. The powers conferred on Lender under the Power of Attorney are solely to protect Lender’s interests in the Collateral
and shall not impose any duty upon it to exercise any such powers. Lender agrees, except for the powers granted in clause (h) of
the Power of Attorney, not to exercise any power or authority granted under the Power of Attorney unless an Event of Default has
occurred and is continuing. Each Corporate Credit Party authorizes Lender to file any financing or continuation statement without
the signature of Borrowers to the extent permitted by applicable law. NONE OF LENDER OR ITS AFFILIATES, OFFICERS, DIRECTORS, EMPLOYEES,
AGENTS OR REPRESENTATIVES SHALL BE RESPONSIBLE TO ANY GRANTOR FOR ANY ACT OR FAILURE TO ACT UNDER ANY POWER OF ATTORNEY OR OTHERWISE,
EXCEPT IN RESPECT OF DAMAGES ATTRIBUTABLE SOLELY TO THEIR OWN GROSS NEGLIGENCE OR WILLFUL MISCONDUCT AS FINALLY DETERMINED BY A
COURT OF COMPETENT JURISDICTION, NOR FOR ANY PUNITIVE, EXEMPLARY, INDIRECT OR CONSEQUENTIAL DAMAGES.

 

10.4         
Grant of License to Use Intellectual Property Collateral. Each Corporate Credit Party hereby grants to Lender an
irrevocable, non-exclusive license (exercisable upon the occurrence and during the continuance of an Event of Default) without
payment of royalty or other compensation to any Corporate Credit Party to use, transfer, license or sublicense any Intellectual
Property now owned, licensed to, or hereafter acquired by any Corporate Credit Party, and wherever the same may be located, and
including in such license access to all media in which any of the licensed items may be recorded or stored and to all computer
software and programs used for the compilation or printout thereof, and represents, promises and agrees that any such license or
sublicense is not and will not be in conflict with the contractual or commercial rights of any third Person; provided, that such
license will terminate on the Termination Date.

 

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10.5         
Terminations; Amendments Not Authorized. Each Corporate Credit Party executing this Agreement acknowledges that it
is not authorized to file any financing statement or amendment or termination statement with respect to any financing statement
without the prior written consent of Lender and agrees that it will not do so without the prior written consent of Lender, subject
to Borrower’s rights under Section 9-509(d)(2) of the UCC.

 

10.6         
Inspections. At all times during normal business hours and absent the occurrence of a Default or an Event of Default
upon reasonable notice to Borrowing Representative, Lender shall have the right to (a) have access to, visit, inspect, review,
evaluate and make physical verification and appraisals of each Borrower’s properties and the Collateral, (b) inspect, examine
and copy (or take originals if necessary) and make extracts from such Borrower’s Books and Records, including management
letters prepared by independent accountants, and (c) discuss with each Borrower’s principal officers, and independent accountants,
each Borrower’s business, assets, liabilities, financial condition, results of operations and business prospects. Each Borrower
will deliver to Lender any instrument necessary for Lender to obtain records from any service bureau maintaining records for such
Borrower.

 

10.7         
Inapplicability. The provisions of this Article (except Sections 10.5 and 10.6) do not apply to Digirad
Corporation, Lone Star Value Management, LLC or Lone Star Value Co-Invest I, LP.

 

		XI.	TERM

 

11.1         
Term of Agreement. Any obligation of Lender to make Loans and extend their financial accommodations under this Agreement
or any Credit Document shall continue in full force and effect until the expiration of the Term. The termination of the Agreement
shall not affect any of Lender’s rights hereunder or any Credit Document and the provisions hereof and thereof shall continue
to be fully operative until all transactions entered into, rights or interests created and the Obligations have been disposed of,
concluded or liquidated. The Maturity Date shall be automatically extended for successive periods of one (1) year each unless (a)
Borrowing Representative shall have provided Lender with a written notice of termination, at least sixty (60) days prior to the
expiration of the Maturity Date or any renewal of the Maturity Date or (b) Lender provides written notice of termination to Borrowing
Representative at least sixty (60) days prior to the expiration of the Maturity Date or any renewal of the Maturity Date. Notwithstanding
the foregoing, Lender shall release its security interests at any time after thirty (30) days notice upon payment to it of all
Obligations if each Credit Party shall have (i) provided Lender with an executed release of any and all claims which Credit Parties
may have or thereafter have under this Agreement and/or any Credit Document and (ii) paid to Lender an amount equal to (A) the
monthly interest on the Minimum Average Monthly Loan Amount calculated based on the interest rate in effect on the date of such
payment multiplied by (B) the difference between (I) the number of full months from the Closing Date until the Maturity Date and
(II) the number of full months which have elapsed from the Closing Date until the payment of the fee hereunder. In addition, Borrower
shall pay to Lender the Collateral Monitoring Fee for each month from the date of repayment until the Maturity Date. These fees
shall also be due and payable to Lender upon termination of this Agreement by Lender after the occurrence of an Event of Default.

 

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11.2         
[Intentionally Omitted]

 

11.3         
Termination of Lien. The Liens and rights granted to Lender hereunder and any Credit Documents and the financing
statements filed in connection herewith or therewith shall continue in full force and effect, notwithstanding the termination of
this Agreement or the fact that Borrowers’ account may from time to time be temporarily in a zero or credit position, until
(a) all of the Obligations have been paid or performed in full after the termination of this Agreement or each Credit Party has
furnished Lender with an indemnification satisfactory to Lender with respect thereto and (b) each Credit Party has an executed
release of any and all claims which such Credit Party may have or thereafter have under this Agreement or any other Credit Document.
Accordingly, each Credit Party waives any rights which it may have under the UCC to demand the filing of termination statements
with respect to the Collateral, and Lender shall not be required to send such termination statements to any Credit Party, or to
file them with any filing office, unless and until this Agreement and the Credit Documents shall have been terminated in accordance
with their terms and all Obligations paid in full in immediately available funds.

 

		XII.	EVENTS OF DEFAULT

 

12.1         
Events of Default. If any one or more of the following events (each, an “Event of Default”) shall
occur and be continuing:

 

(a)              
any Borrower shall fail to pay the principal of or interest on any Loan or any fees or other Obligations when and as the
same shall become due and payable (whether at maturity, by acceleration or otherwise); or

 

(b)              
any representation or warranty made or deemed made in or in connection with this Agreement or any other Credit Document
or as an inducement to enter into this Agreement or any other Credit Document or any representation, warranty, statement or information
contained in any report, certificate, financial statement or other instrument or agreement furnished in connection with or pursuant
to this Agreement or any other Credit Document shall prove to have been false or misleading in any material respect when made,
deemed to be made or furnished; or

 

(c)              
(i) Borrower or any other Corporate Credit Party shall fail or neglect to perform, keep or observe any of the covenants,
promises, agreements, requirements, conditions or other terms or provisions contained in Article II, Sections 7.1,
7.3, 7.16, 7.17, 7.18, 7.19, 8.2 and Article IX of this Agreement; or (ii) Borrower
or any other Credit Party shall fail or neglect to perform, keep or observe any of the other covenants, promises, agreements, requirements,
conditions or other terms or provisions contained in this Agreement (other than those set forth in the Sections referred to in
clause (i) immediately above) or any of the other Loan Documents, regardless of whether such breach involves a covenant, promise,
agreement, condition, requirement, term or provision with respect to a Credit Party that has not signed this Agreement, and such
breach is not remediable or, if remediable, continues unremedied for a period of five (5) Business Days after the earlier to occur
of (x) the date on which such breach is known or reasonably should have become known to any officer of any Borrower or such Credit
Party and (y) the date on which Lender shall have notified any Borrower or such other Credit Party of such breach; or

 

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(d)              
this Agreement or any other Credit Document shall not be for any reason, or shall be asserted by any Credit Party not to
be, in full force and effect in all material respects in accordance with its terms or the Lien granted or intended to be granted
to Lender pursuant to this Agreement or any other Credit Document shall cease to be a valid and perfected Lien having the first
priority (or a lesser priority if expressly permitted in this Agreement or another Credit Document); or

 

(e)              
any judgment shall be rendered against any Credit Party or there shall be any attachment or execution against any of the
assets or properties of any Credit Party, and such judgment, attachment or execution remains unpaid, unstayed or undismissed for
a period of fourteen (14) days from the date of such judgment; or

 

(f)               
any Credit Party shall be dissolved or shall generally not pay, or shall be generally unable to pay its debts as such debts
become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit
of creditors; or any proceeding shall be instituted or a petition shall be filed by or against any Credit Party seeking to adjudicate
it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief or
composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking
the entry of an order for relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property; or any Credit Party shall take any action to authorize any of the actions set forth above in
this clause (f); or

 

(g)              
any Credit Party shall (i) fail to pay any principal or interest, regardless of amount, due in respect of Indebtedness when
and as the same shall become due and payable or (ii) fail to observe or perform any other term, covenant, condition or agreement
contained in any agreements or instruments evidencing or governing any Indebtedness if the effect of any failure referred to in
this clause (ii) is to cause, or to permit the holder or holders of such indebtedness or a trustee on its or their behalf to cause,
such indebtedness to become due prior to its stated maturity; or

 

(h)              
the occurrence of a Change of Control in or with respect to any Corporate Credit Party; or

 

(i)                
there shall be commenced against any Credit Party any Litigation seeking issuance of a warrant of attachment, execution,
distraint or similar process against all or any substantial part of its assets which results in the entry of an order for any such
relief which remains unstayed or undismissed for thirty (30) consecutive days; or any Credit Party shall have concealed, removed
or permitted to be concealed or removed, any part of its property with intent to hinder, delay or defraud any of its creditors
or made or suffered a transfer of any of its property or the incurring of an obligation which may be fraudulent under any bankruptcy,
fraudulent transfer or other similar law; or

 

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(j)                
any other event shall have occurred which has had or could reasonably be expected to have a Material Adverse Effect; or

 

 

(k)              
an ERISA Event shall have occurred that, in the opinion of the Lender, when taken together with all other ERISA Events that
have occurred and are then continuing, could reasonably be expected to result in liability of any Credit Party in an aggregate
amount exceeding the Minimum Actionable Amount; the indictment or threatened indictment of any Corporate Credit Party, any officer
of any Corporate Credit Party or any Guarantor under any criminal statute, or commencement or threatened commencement of criminal
or civil proceeding against any Corporate Credit Party, any officer of any Corporate Credit Party or any Guarantor pursuant to
which statute or proceeding penalties or remedies sought or available include forfeiture of any of the property of any Corporate
Credit Party; or

 

(l)                
any Credit Party shall take or participate in any action which would be prohibited under the provisions of any Subordination
Agreement or Intercreditor Agreement, or make any payment on the Subordinated Debt that any Person was not entitled to receive
under the provisions of the applicable Subordination Agreement or Intercreditor Agreement or an Event of Default shall have occurred
as defined under any Subordinated Debt; or

 

(m)            
the Life Insurance Policy shall be terminated, by any Credit Party or otherwise; or the Life Insurance Policy shall be scheduled
to terminate within thirty (30) days and such Credit Party shall not have delivered a satisfactory renewal thereof to Lender; or
any Credit Party shall fail to pay any premium on the Life Insurance Policy when due; or shall take any other action that impairs
the value of the Life Insurance Policy; or

 

(n)              
an Event of Default shall have occurred as defined under any of the other Obligations;

 

then, and in any such event and at any
time thereafter, if such or any other Event of Default shall then be continuing, Lender in its sole discretion may declare any
or all of the Obligations to be due and payable, and the same shall immediately become due and payable without presentment, demand,
protest or notice of any kind, all of which are hereby expressly waived; provided, however, that if there shall occur
an Event of Default under paragraph (f) above, then any and all of the Obligations shall be immediately due and payable without
any necessary action or notice by Lender.

 

12.2          
Lender Remedies.

 

(a)              
In addition to the rights and remedies set forth in Section 12.1, if any Event of Default shall have occurred and
be continuing, Lender may, without notice, take any one or more of the following actions: (i) require that all Letter of Credit
Obligations be fully cash collateralized pursuant to Schedule I; or (ii) exercise any rights and remedies provided to Lender under
the Credit Documents or at law or equity, including all remedies provided under the UCC.

 

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(b)              
Without limiting the generality of the foregoing, each Corporate Credit Party expressly agrees that upon the occurrence
of any Event of Default, Lender may take any action necessary to collect, receive, assemble, process, appropriate and realize upon
the Collateral, or any part thereof, or appoint a third party to do so and may forthwith sell, lease, assign, give an option or
options to purchase or otherwise dispose of and deliver said Collateral (or contract to do so), or any part thereof, in one or
more parcels at public or private sale or sales, at any exchange at such prices as it may deem best, for cash or on credit or for
future delivery without assumption of any credit risk. Lender shall have the right upon any such public sale, to the extent permitted
by law, to purchase for the benefit of Lender the whole or any part of said Collateral so sold, free of any right of equity of
redemption, which right each Credit Party hereby releases. Such sales may be adjourned or continued from time to time with or without
notice. Lender shall have the right to conduct such sales on any Corporate Credit Party’s premises or elsewhere and shall
have the right to use any Corporate Credit Party’s premises without rent or other charge for such sales or other action with
respect to the Collateral for such time as Lender deems necessary or advisable.

 

(c)              
Upon the occurrence and during the continuance of an Event of Default and at Lender’s request, each Credit Party further
agrees to assemble the Collateral and make it available to Lender at places which Lender shall reasonably select, whether at its
premises or elsewhere. Until Lender is able to effect a sale, lease, or other disposition of the Collateral, Lender shall have
the right to complete, assemble, use or operate the Collateral or any part thereof, to the extent that Lender deems appropriate,
for the purpose of preserving such Collateral or its value or for any other purpose. Lender shall have no obligation to any Credit
Party to maintain or preserve the rights of any Credit Party as against third parties with respect to any Collateral while such
Collateral is in the possession of Lender. Lender may, if it so elects, seek the appointment of a receiver or keeper to take possession
of any Collateral and to enforce any of Lender’s remedies with respect thereto without prior notice or hearing. To the maximum
extent permitted by applicable law, each Credit Party waives all claims, damages, and demands against Lender, its Affiliates, agents,
and the officers and employees of any of them arising out of the repossession, retention or sale of any Collateral except such
as are determined in a final judgment by a court of competent jurisdiction to have arisen solely out of the gross negligence or
willful misconduct of such Person. Each Credit Party agrees that ten (10) days prior notice by Lender to each Credit Party of the
time and place of any public sale or of the time after which a private sale may take place is reasonable notification of such matters.
Each Credit Party shall remain liable for any deficiency if the proceeds of any sale or disposition of the Collateral are insufficient
to pay all amounts to which Lender is entitled.

 

(d)              
Lender’s rights and remedies under this Agreement shall be cumulative and nonexclusive of any other rights and remedies
which Lender may have under any other Credit Document or at law or in equity or as provided under any Obligation. Recourse to the
Collateral shall not be required. All provisions of this Agreement are intended to be subject to all applicable mandatory provisions
of law that may be controlling and to be limited, to the extent necessary, so that they do not render this Agreement invalid or
unenforceable, in whole or in part.

 

12.3         
Waivers. Except as otherwise provided for in this Agreement and to the fullest extent permitted by applicable law,
each Credit Party waives: (a) presentment, demand and protest, and notice of presentment, dishonor, intent to accelerate, acceleration,
protest, default, nonpayment, maturity, release, compromise, settlement, extension or renewal of any or all Credit Documents, the
Notes or any other notes, commercial paper, Accounts, Contracts, Documents, Instruments, Chattel Paper and guaranties at any time
held by Lender on which any Credit Party may in any way be liable, and hereby ratifies and confirms whatever Lender may do in this
regard; (b) all rights to notice and a hearing prior to Lender’s taking possession or control of, or to Lender’s replevy,
attachment or levy upon, any Collateral or any bond or security which might be required by any court prior to allowing Lender to
exercise any of its remedies; and (c) the benefit of all valuation, appraisal and exemption laws. Each Credit Party acknowledges
that it has been advised by counsel of its choices and decisions with respect to this Agreement, the other Credit Documents and
the transactions evidenced hereby and thereby.

 

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12.4         
Proceeds. The Proceeds of any sale, disposition or other realization upon any Collateral shall be applied by Lender
upon receipt to the Obligations in such order as Lender may deem advisable in its sole discretion (including the cash collateralization
of any Letter of Credit Obligations), and after the indefeasible payment and satisfaction in full in cash of all of the Obligations,
and after the payment by Lender of any other amount required by any provision of law, including the UCC (but only after Lender
has received what Lender considers reasonable proof of a subordinate party’s security interest), the surplus, if any, shall
be paid to Borrowers or their representatives or to whomsoever may be lawfully entitled to receive the same, or as a court of competent
jurisdiction may direct.

 

		XIII.	MISCELLANEOUS

 

13.1         
No Waiver; Cumulative Remedies. No failure to exercise and no delay in exercising, on the part of Lender, any right,
remedy, power or privilege under this Agreement or any other Credit Documents shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder or thereunder preclude any other or further exercise
thereof or the exercise of any other right, remedy, power or privilege. No notice to or demand on any Credit Party in any case
shall, of itself, entitle it to any other or further notice or demand in similar or other circumstances. The rights, remedies,
powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided
by law.

 

13.2         
Amendments and Waivers. No amendment, modification or waiver of or with respect to any provision of this Agreement
or any other Credit Document shall in any event be effective unless it shall be in writing and signed by Lender and each Credit
Party, and then such amendment, modification, waiver or consent shall be effective only in the specific instance and for the purpose
for which given.

 

13.3         
Expenses; Indemnity.

 

(a)              
Each Credit Party agrees to, jointly and severally, pay or reimburse Lender for all costs and expenses (including, without
limitation, the fees and expenses of all counsel, advisors, consultants and auditors) incurred by Lender in connection with: (i)
the preparation, negotiation, execution, delivery, performance and enforcement of this Agreement and the other Credit Documents,
any amendments, modifications or waivers of the provisions hereof or thereof (whether or not the transactions contemplated shall
be consummated); (ii) the enforcement or protection of Lender’s rights in connection with this Agreement and the other Credit
Documents or in connection with the Loans; (iii) any advice in connection with the administration of the Loans or the rights under
this Agreement or the other Credit Documents; (iv) any litigation, dispute, suit, proceeding or action (whether instituted by or
between any combination of Lender, any Credit Party or any other Person), and an appeal or review thereof, in any way relating
to the Collateral, this Agreement, any other Credit Document, or any action taken or any other agreements to be executed or delivered
in connection therewith, whether as a party, witness or otherwise; and (v) any effort (x) to monitor the Loans, (y) to evaluate,
observe or assess any Borrower or any other Credit Party or the affairs of such Person, and (z) to verify, protect, evaluate, assess,
appraise, collect, sell, liquidate or otherwise dispose of the Collateral. In addition to the foregoing, each Credit Party agrees
to pay Lender a fee of $1,000 for each amendment, modification, supplement or restatement of any Credit Document entered into by
Lender and any Borrower. Each Corporate Credit Party further agrees, jointly and severally, to indemnify Lender from and agrees
to hold it harmless against any documentary taxes, assessments or charges made by any governmental authority by reason of the execution
and delivery of this Agreement or any of the other Credit Documents.

 

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(b)              
Each Corporate Credit Party agrees to, jointly and severally, indemnify Lender, its correspondents and each of its respective
directors, shareholders, officers, employees and agents (each, an “Indemnified Person”) against, and agrees
to hold each Indemnified Person harmless from, any and all losses, claims, damages, liabilities and related expenses, including
reasonable counsel fees, charges and disbursements, incurred by or asserted against any Indemnified Person arising out of, in any
way connected with or as a result of (i) the use of any of the proceeds of any Loan or the use of any Loan, (ii) the goods or transactions
financed by the Loans, (iii) this Agreement, any other Credit Document or any other document contemplated hereby or thereby, the
performance by the parties hereto or thereto of their respective obligations hereunder and thereunder or the consummation of the
transactions contemplated hereby and thereby, or (iv) any claim, litigation, investigation or proceedings relating to any of the
foregoing, whether or not any Indemnified Person Indemnity is a party thereto; provided, however, that such indemnity
shall not, as to any Indemnified Person, apply to any such losses, claims, damages, liabilities or related expenses to the extent
that they result from the gross negligence or willful misconduct of Lender.

 

(c)              
The provisions of this Section 13.3 shall remain operative and in full force and effect regardless of the expiration
of the term of this Agreement and the repayment of the Loans. All amounts due under this Section 13.3 shall be payable on
written demand therefor.

 

13.4         
Borrowing Agency Provisions. If and to the extent that at any time or from time to time there are multiple Borrowers,
then.

 

(a)              
Each Borrower acknowledges that, together with each other Borrower, it is part of an affiliated common enterprise in which
any loans or other financial accommodations extended to any one Borrower will result in direct and substantial economic benefit
to each other Borrower, and each Borrower will likewise benefit from the economies of scale associated with the Borrowers, as a
group, applying for credit or other financial accommodations on a collective basis.

 

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(b)              
Each Borrower hereby irrevocably designates Borrowing Representative to be its attorney and agent and, in such capacity,
to borrow, sign and endorse notes, and execute and deliver all instruments, documents, writings and further assurances now or hereafter
required hereunder, on behalf of such Borrower or Borrowers, and hereby authorizes Lender to pay over or credit all loan proceeds
hereunder in accordance with the request of Borrowing Representative.

 

(c)              
The handling of this credit facility as a co-borrowing facility with a Borrowing Representative in the manner set forth
in this Agreement is solely as an accommodation to Borrowers and at their request. Lender shall not incur liability to Borrowers
as a result thereof. To induce Lender to do so and in consideration thereof, each Borrower, jointly and severally, hereby indemnifies
Lender and holds Lender harmless from and against any and all liabilities, expenses, losses, damages and claims of damage or injury
asserted against Lender or any issuer by any Person arising from or incurred by reason of the handling of the financing arrangements
of Borrowers as provided herein, reliance by Lender on any request or instruction from Borrowing Representative or any other action
taken by Lender with respect to this Section except due to willful misconduct or gross negligence by the indemnified party.

 

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

 

13.5                   
Guaranty. Each Corporate Credit Party hereby absolutely, unconditionally and jointly and severally guarantees to
Lender and its successors and assigns the full and prompt payment (whether at stated maturity, by acceleration or otherwise) and
performance of all Obligations owed or hereafter owing to Lender by each Corporate Credit Party. Each Corporate Credit Party agrees
that its guaranty obligation hereunder is a joint and several continuing guaranty of payment and performance and not of collection,
and that its obligations shall be absolute and unconditional, irrespective of, and unaffected by:

 

(a)              
the genuineness, validity, regularity, enforceability or any future amendment of, or change in, this Agreement, any other
Credit Documents;

 

(b)              
the absence of any action to enforce this Agreement (including this Section 13.5) or any other Credit Document or
the waiver or consent by Lender with respect to any of the provisions hereof or thereof;

 

(c)              
the existence, value or condition of, or failure to perfect its Lien against, any security for the Obligations or any action,
or the absence of any action, by Lender in respect thereof (including the release of any such security);

 

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(d)              
the insolvency of any Credit Party; or

 

(e)              
any other action or circumstances that might otherwise constitute a legal or equitable discharge or defense of a surety
or guarantor,

 

it being agreed by each Credit Party that its obligations shall
not be discharged until the payment and performance, in full, of the Obligations has occurred. Each Credit Party shall be regarded,
and shall be in the same position, as principal debtor with respect to the Obligations guaranteed hereunder.

 

13.6         
Waivers. Each Corporate Credit Party expressly waives all rights it may have now or in the future under any statute,
or at common law, or at law or in equity, or otherwise, to compel Lender to marshal assets or to proceed in respect of the Obligations
guaranteed hereunder against any other Corporate Credit Party, any other party or against any security for the payment and performance
of the Obligations before proceeding against, or as a condition to proceeding against, such Credit Party. It is agreed among each
Credit Party and Lender that the foregoing waivers are of the essence of the transactions contemplated by this Agreement and the
other Credit Documents and that, but for the provisions of this Section 13.6 and such waivers, Lender would decline to enter
into this Agreement.

 

13.7         
Benefit of Guaranty. Each Credit Party agrees that the provisions of Section 13.5 are for the benefit of Lender
and its successors, transferees, endorsees and assigns, and nothing herein contained shall impair, as between any other Credit
Party and Lender, the obligations of such other Credit Party under this Agreement or the other Credit Documents.

 

13.8         
Subordination of Subrogation. Notwithstanding anything to the contrary in this Agreement or in any other Credit Documents,
each Credit Party hereby expressly and irrevocably subordinates to payment of the Obligations any and all rights at law or in equity
to subrogation, reimbursement, exoneration, contribution, indemnification or set off and any and all defenses available to a surety,
guarantor or accommodation co-obligor until the Obligations are indefeasibly paid in full in cash. Each Credit Party acknowledges
and agrees that this waiver is intended to benefit Lender and shall not limit or otherwise affect such Credit Party’s liability
hereunder or the enforceability of Section 13.5.

 

13.9         
Election of Remedies. If Lender may, under applicable law, proceed to realize its benefits under this Agreement or
any other Credit Document giving Lender a Lien upon any Collateral, whether owned by any Borrower or by any other Person, either
by judicial foreclosure or by non-judicial sale or enforcement, Lender may, at its sole option, determine which of its remedies
or rights it may pursue without affecting any of its rights and remedies under Section 13.5. If, in the exercise of any
of its rights and remedies, Lender shall forfeit any of its rights or remedies, including its right to enter a deficiency judgment
against any Credit Party or any other Person, whether because of any applicable laws pertaining to “election of remedies”
or the like, each Credit Party hereby consents to such action by Lender and waives any claim based upon such action, even if such
action by Lender shall result in a full or partial loss of any rights of subrogation which such Credit Party might otherwise have
had but for such action by Lender. Any election of remedies that results in the denial or impairment of the right of Lender to
seek a deficiency judgment against any Credit Party shall not impair any other Credit Party’s obligation to pay the full
amount of the Obligations. In the event Lender shall bid at any foreclosure or trustee’s sale or at any private sale permitted
by law, this Agreement or any other Credit Document, Lender may bid all or less than the amount of the Obligations and the amount
of such bid need not be paid by Lender but may be credited against the Obligations. The amount of the successful bid at any such
sale, whether Lender or any other party is the successful bidder, shall be conclusively deemed to be the fair market value of the
Collateral and the difference between such bid amount and the remaining balance of the Obligations shall be conclusively deemed
to be the amount of the Obligations guaranteed under Section 13.5 notwithstanding that any present or future law or court
decision or ruling may have the effect of reducing the amount of any deficiency claim to which Lender might otherwise be entitled
but for such bidding at any such sale.

 

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13.10     
Liability Cumulative. The liability of Credit Parties under Section 13.5 is in addition to and shall be cumulative
with all liabilities of each Credit Party to Lender under this Agreement and the other Credit Documents or in respect of any Obligations
or obligation of the other Credit Parties, without any limitation as to amount, unless the instrument or agreement evidencing or
creating such other liability specifically provides to the contrary.

 

13.11     
Waiver of Subrogation. Each Borrower expressly waives any and all rights of subrogation, reimbursement, indemnity,
exoneration, contribution of any other claim which such Borrower may now or hereafter have against the other Borrowers or other
Person directly or contingently liable for the Obligations hereunder, or against or with respect to the other Borrowers’
property (including, without limitation, any property which is Collateral for the Obligations), arising from the existence or performance
of this Agreement, until termination of this Agreement and repayment in full of the Obligations.

 

13.12     
Further Assurances. Each Credit Party will take, or cause to be taken, all such further actions and execute, or cause
to be executed, all such further documents and instruments as Lender may at any time reasonably request or determine to be necessary
or advisable to further carry out and consummate the transactions contemplated by this Agreement and the other Credit Documents.

 

13.13     
Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of each Credit Party and its
successors and to the benefit of Lender and its successors and assigns. The rights and obligations of each Credit Party under this
Agreement shall not be assigned or delegated without the prior written consent of Lender, and any purported assignment or delegation
without such consent shall be null and void. Lender reserves the right at any time to create and sell participations in the Loans
and the Credit Documents and to sell, transfer or assign any or all of its rights in the Loans and under the Credit Documents.

 

13.14     
Descriptive Headings. The descriptive headings of the various provisions of this Agreement are inserted for convenience
of reference only and shall not be deemed to affect the meaning or construction of any of the provisions hereof.

 

13.15     
Rules of Construction. For purposes of this Agreement and the other Credit Documents, the following additional rules
of construction shall apply, unless specifically indicated to the contrary: (a) wherever from the context it appears appropriate,
each term stated in either the singular or plural shall include the singular and the plural; (b) all references to statutes
and related regulations shall include any amendments of same and any successor statutes and regulations; and (c) all references
to any instruments or agreements, including references to any of the Credit Documents, shall include any and all modifications
or amendments thereto and any and all extensions or renewals thereof. The words “including”, “includes”
and “include” shall be deemed to be followed by the words “without limitation” the word “or”
is not exclusive; references to Persons include their respective successors and assigns (to the extent and only to the extent permitted
by the Credit Documents) or, in the case of governmental Persons, Persons succeeding to the relevant functions of such Persons;
and all references to statues and related regulations shall include any amendments of the same and any successor statutes and regulations.

 

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13.16     
Notices. Except as otherwise provided herein, whenever any notice, demand, request or other communication shall or
may be given to or served upon any party by any other party, or whenever any party desires to give or serve upon any other party
any communication with respect to this Agreement, each such communication shall be in writing and shall be deemed to have been
validly served, given or delivered (a) upon the earlier of actual receipt and three (3) days after deposit in the United States
Mail, registered or certified mail, return receipt requested, with proper postage prepaid, (b) upon transmission, when sent by
telecopy or other similar facsimile transmission (with such telecopy or facsimile promptly confirmed by delivery of a copy by personal
delivery or United States Mail as otherwise provided in this Section 13.16, (c) one (1) Business Day after deposit with a reputable
overnight courier with all charges prepaid or (d) when hand-delivered, all of which shall be addressed to the party to be notified
and sent to the address or facsimile number indicated in Schedule V or to such other address (or facsimile number) as may
be substituted by notice given as herein provided. Failure or delay in delivering copies of any such communication to any Person
(other than Borrowing Representative or Lender) designated in Schedule V to receive copies shall in no way adversely affect
the effectiveness of communication.

 

13.17     
Severability. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as
to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision
in any other jurisdiction.

 

13.18     
Entire Agreement; Counterparts. This Agreement and the other Credit Documents represent the agreement of Credit Parties
and Lender with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by
any Borrower or Lender relative to the subject matter hereof not expressly set forth or referred to herein or in the other Credit
Documents. Nothing in this Agreement or in the other Credit Documents, express or implied, is intended to confer upon any party,
other than the parties hereto and thereto, any rights, remedies, obligations or liabilities under or by reason of this Agreement
or the other Credit Documents. This Agreement may be signed in any number of counterparts with the same effect as if the signatures
thereto and hereto were upon the same instrument. Any signature delivered by a party via facsimile or electronic transmission shall
be deemed to be an original signature hereto.

 

    47

    

    

 

13.19     
SUBMISSION TO JURISDICTION. EACH CREDIT PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY: (a) SUBMITS FOR ITSELF AND
ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING, DIRECTLY OR INDIRECTLY, RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT
TO WHICH IT IS A PARTY, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION
OF THE COURTS OF THE STATE OF NEW YORK IN THE COUNTY OF NEW YORK AND THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT
OF NEW YORK; (b) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES ANY OBJECTION THAT IT MAY
NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT
IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; (c) AGREES THAT SERVICE OF PROCESS IN ANY SUCH ACTION OR PROCEEDING
MAY BE EFFECTED BY MAILING A COPY THEREOF BY REGISTERED OR CERTIFIED MAIL (OR ANY SUBSTANTIALLY SIMILAR FORM OF MAIL), POSTAGE
PREPAID, TO IT AT ITS ADDRESS SET FORTH IN SCHEDULE V TO THIS AGREEMENT OR AT SUCH OTHER ADDRESS OF WHICH LENDER SHALL HAVE BEEN
NOTIFIED PURSUANT TO SECTION 13.16; AND (d) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY
OTHER MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION.

 

13.20     
WAIVER OF TRIAL BY JURY, CERTAIN DAMAGES AND SETOFFS. IN ANY LEGAL ACTION OR PROCEEDING, DIRECTLY OR INDIRECTLY,
RELATING TO THIS AGREEMENT OR ANY OTHER CREDIT DOCUMENT OR ANY DOCUMENT, INSTRUMENT OR AGREEMENT DELIVERED PURSUANT HERETO OR THERETO,
(A) EACH OF EACH CREDIT PARTY AND LENDER HEREBY, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, IRREVOCABLY AND UNCONDITIONALLY
WAIVES THE RIGHT TO TRIAL BY JURY IN CONNECTION WITH ANY SUCH LEGAL ACTION OR PROCEEDING, (B) EACH OF EACH CREDIT PARTY AND LENDER
HEREBY, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT IT MAY HAVE TO CLAIM OR
RECOVER IN ANY SUCH LEGAL ACTION OR PROCEEDING ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES OR ANY DAMAGES OTHER THAN,
ACTUAL DAMAGES AND (C) EACH CREDIT PARTY HEREBY, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, IRREVOCABLY AND UNCONDITIONALLY
WAIVES THE RIGHT TO INTERPOSE ANY NON-COMPULSORY SETOFF, RECOUPMENT, COUNTERCLAIM OR CROSS-CLAIM IN CONNECTION WITH ANY SUCH LEGAL
ACTION OR PROCEEDING. EACH BORROWER AGREES THAT THIS SECTION 13.20 IS A SPECIFIC AND MATERIAL ASPECT OF THIS AGREEMENT AND ACKNOWLEDGES
THAT LENDER WOULD NOT EXTEND TO ANY BORROWER ANY LOANS HEREUNDER IF THIS SECTION 13.20 WERE NOT PART OF THIS AGREEMENT.

 

    48

    

    

 

13.21     
GOVERNING LAW. THIS AGREEMENT, THE OTHER CREDIT DOCUMENTS (OTHER THAN THE MORTGAGE) AND THE OBLIGATIONS
ARISING HEREUNDER AND THEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE
OF NEW YORK APPLICABLE TO CONTRACTS MADE AND PERFORMED IN SUCH STATE, WITHOUT REGARD TO THE CONFLICT OF LAW PRINCIPLES THEREOF.
ANY MORTGAGE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE IN WHICH THE MORTGAGED
PROPERTY IS LOCATED.

 

13.22     
Reinstatement. This Agreement shall continue to be effective, or be reinstated, as the case may be, if at any time
payment of all or any part of the Obligations is rescinded or must otherwise be returned or restored by Lender upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of any Credit Party, or otherwise, all as though such payments had not been
made.

 

[Signature Page
Follows]

 

    49

    

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed as of the day and year first above written.

 

	 	EDGEBUILDER, INC.
	 	 	 	 
	 	By:	/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	Vice President
	 	 	 	 
	 	GLENBROOK BUILDING SUPPLY, INC.
	 	 	 	 
	 	By:	/s/ David J. Noble
	 	 	Name:  	David J. Noble
	 	 	Title:     	Vice President

 

 

[Borrowers’ signatures to Loan Agreement]

 

    SIGNATURE PAGE TO
LOAN AGREEMENT

    

    

 

	 	STAR REAL ESTATE HOLDINGS USA, INC.
	 	 	 	 
	 	By:	/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	300 PARK STREET, LLC
	 	 	 	 
	 	By:	/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	947 WATERFORD ROAD, LLC
	 	 	 	 
	 	By:	/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	56 MECHANIC FALLS ROAD, LLC
	 	 	 	 
	 	By:	/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President and Chief Executive Officer
	 	 	 	 
	 	ATRM HOLDINGS, INC.
	 	 	 	 
	 	By:	/s/ David J. Noble
	 	 	Name:	David J. Noble
	 	 	Title:	President
	 	 	 	 
	 	KBS BUILDERS, INC.
	 	 	 	 
	 	By:	/s/ Matthew Mosher
	 	 	Name:	Matthew Mosher
	 	 	Title:	General Manager
	 	 	 	 
	 	DIGIRAD CORPORATION
	 	 	 	 
	 	By:	/s/ Matthew G. Molchan
	 	 	Name:	Matthew G. Molchan
	 	 	Title:	President and Chief Executive Officer

 

(Corporate Credit Parties’ signatures to Loan Agreement
- continued on following page)

 

    SIGNATURE PAGE TO
LOAN AGREEMENT

    

    

 

(Signatures continued from
previous page)

 

	 	GERBER FINANCE INC.  
	 	 	 	 
	 	By:	/s/ Jennifer Palmer
	 	 	Name:	Jennifer Palmer
	 	 	Title:	Chief Executive Officer

 

[Lender’s
signature page to Loan Agreement]

 

    SIGNATURE PAGE TO
LOAN AGREEMENT

    

    

 

SCHEDULE I

 

GENERAL TERMS FOR LETTERS OF CREDIT

 

1.                 
Lender may, subject to the terms and conditions hereinafter set forth, incur Letter of Credit Obligations in respect of
the issuance of Letters of Credit issued on terms acceptable to Lender and supporting obligations of a Borrower incurred in the
ordinary course of such Borrower’s business, in order to support the payment of such Borrower’s inventory purchase
obligations, insurance premiums, or utility or other operating expenses and obligations, as Borrowing Representative, on behalf
of such Borrower, shall request by written notice to Lender that is received by Lender not less than five (5) Business Days prior
to the requested date of issuance of any such Letter of Credit; provided, that: (a) that the aggregate amount of all Letter
of Credit Obligations at any one time outstanding (whether or not then due and payable) shall not exceed -0- and (b) no Letter
of Credit shall have an expiry date which is later than the Termination Date or one year following the date of issuance thereof.
The applicable Borrower will enter into an application and agreement for such Letter of Credit with the LC Issuer selected by Lender.
The LC Issuer shall be determined by Lender in its sole discretion.

 

2.                 
The notice to be provided to Lender requesting that Lender incur Letter of Credit Obligations shall be in the form of a
Letter of Credit application in the form customarily employed by the LC Issuer, together with a written request by a Borrower and
the LC Issuer that Lender approve such Borrower’s application. Upon receipt of such notice Lender shall establish a reserve
against the Borrowing Base in the amount of 100% of the face amount of the Letter of Credit Obligation to be incurred. Approval
by Lender in the written form agreed upon between Lender and the LC Issuer (a) will authorize the LC Issuer to issue the requested
Letter of Credit and (b) will conclusively establish the existence of the Letter of Credit Obligation as of the date of such approval.

 

3.                 
Each Letter of Credit shall be subject to the Uniform Commercial Customs and, to the extent not inconsistent therewith,
the laws of the State of New York.

 

4.                 
Each payment by the LC Issuer or Lender pursuant to a Letter of Credit shall be deemed to be a Revolving Credit Advance
on the date of such payment in a principal amount equal to the amount so paid. Each Borrower shall be obligated to reimburse Lender
for each payment made under or in respect of any Letter of Credit (including, the payment of principal, fees and interest on any
Revolving Credit Advance made pursuant to the immediately preceding sentence and any payment made by Lender in reimbursement of
any payment made under a Letter of Credit by an LC Issuer together with such other amounts that become due pursuant to this Agreement
or other instrument.

 

5.                 
The obligations of each Borrower under this Schedule  shall be absolute, unconditional and irrevocable under any
and all circumstances and shall be paid strictly in accordance with this Agreement irrespective of: (a) any lack of validity or
enforceability of any Letter of Credit or of any demand, application, reimbursement agreement or other agreement or instrument
relating thereto (collectively, the “Related Documents”); (b) the existence of any claim, setoff, defense or
other right that any Borrower or any other Person may at any time have against the beneficiary under any Letter of Credit, Lender,
the LC Issuer, any of their correspondents or any other Person; (c) any improper or erroneous or mistaken payment by any LC Issuer
or Lender under any Letter of Credit; (d) any supplement or waiver of or any consent to depart from the terms of any Letter of
Credit or Related Document; and (e) any other circumstance or event whatsoever, whether or not similar to any of the foregoing.

 

    

    

    

 

6.                 
In the event Lender or the LC Issuer receives some but not all of the documents against which a drawing under a Letter of
Credit may be made and, at a Borrower’s request, Lender or the LC Issuer delivers such documents to a Borrower, against trust
receipt or otherwise, prior to the presentation of the related draft, each Borrower agrees to pay to Lender on demand the amount
of any claim made against Lender or the LC Issuer by reason thereof and authorizes Lender and the LC Issuer to pay or accept (as
the case may be) such draft when it is presented regardless of whether such draft or any document which may accompany it complies
with the terms of the relevant Letter of Credit.

 

7.                 
Except insofar as instructions may be given to Lender by each Borrower in writing expressly to the contrary with regard
to, and prior to the opening of, any Letter of Credit, each Borrower agrees that Lender, the LC Issuer and any of their correspondents
may: (a) receive and accept as “bills of lading” under any Letter of Credit any documents issued or purporting to be
issued by or on behalf of any carrier which acknowledges receipt of goods for transportation or otherwise, whatever the specific
provisions of such documents, for which purpose the “on board” date of each such document shall be deemed the date
of shipment of the goods mentioned therein; (b) accept as documents of insurance either insurance policies or insurance certificates;
(c) receive and accept as sufficient and controlling the description of the property contained in the invoice, and receive and
accept bills of lading, insurance and other documents, however variant in description from that contained in the invoice; (d) receive
and accept bills of lading containing stamped, written or typewritten provisions thereon, whether or not signed or initialed, and
assume conclusively that the same were placed with authority on any bill of lading at the time of its signing and issuance by the
steamship company or carrier or any agent thereof; (e) honor drafts, instruments or demands related to part shipments under any
Letter of Credit; (f) accept or pay any draft dated on or before the expiration of any time limit expressed in any Letter of Credit,
regardless of when drawn and whether or when negotiated, provided that the other required documents are dated on or prior to the
expiration date of such Letter of Credit; and (g) accept documents of any character which comply with the provisions, definitions,
interpretations and practices contained in the Uniform Customs or which comply with the laws or regulations in force in, or the
customs or usages of, the place of shipment or negotiation.

 

    2

    

    

 

8.                 
Neither Lender nor any LC Issuer nor any of their correspondents shall be responsible for: (a) the use which may be made
of any Letter of Credit, or any acts or omissions in connection therewith; (b) the existence, character, quality, quantity, condition,
packing, value or delivery of the goods purporting to be represented by documents; (c) any difference in character, quality, quantity,
condition or value of the goods from that expressed in the documents; (d) the validity, sufficiency or genuineness of documents,
or of any endorsements thereon, even if such documents should in fact prove to be in any or all respects invalid, insufficient,
fraudulent or forged; (e) the time, place, manner or order in which shipment is made; (f) any partial or incomplete shipment or
failure or omission to ship any or all of the goods referred to in any Letter of Credit; (g) the character, adequacy, validity
or genuineness of any insurance, the solvency or responsibility of any insurer or any other risk connected with insurance; (h)
any deviation from instructions, delay, default or fraud by the shipper or anyone else in connection with goods or the shipping
thereof; (i) the solvency, responsibility or relationship to the goods of any party issuing any documents in connection with the
goods; (j) any delay in arrival or failure to arrive of either the goods or any of the documents relating thereto; (k) any delay
in giving or failure to give notice of arrival or any other notice; (l) any breach of contract between the shippers or vendors
and the consignees or buyers; (m) compliance with or circumstances resulting from any laws, customs and regulations which may be
effective in countries of negotiation or payment of any Letter of Credit; (n) any failure of any draft, instrument or demand to
bear any reference or adequate reference to the related Letter of Credit, any failure of documents to accompany any draft, instrument
or demand at negotiation or any failure of any Person to note the amount of any draft, instrument or demand on the reverse of the
related Letter of Credit or to surrender or take up such Letter of Credit or to send forward documents apart from drafts, in each
case as required by the terms of the related Letter of Credit, any of which requirements, if contained in any Letter of Credit,
may be waived by Lender or the LC Issuer; (o) any errors, omissions, interruptions or delays in transmission or delivery of any
message, by mail, telex, cable, telegraph, wireless or otherwise, whether or not they be in cipher; (p) any failure of any document
to conform to, or be presented under, the Letter of Credit in any instance where any Borrower or its agent, upon request, has received
documents and/or goods represented thereby; or (q) any refusal by Lender, the LC Issuer or any of their correspondents to pay or
honor drafts drawn or purportedly drawn under any Letter of Credit because of any applicable law, decree or edict, legal or illegal,
of any governmental agency now or hereafter in force, or for any other matter beyond Lender’s control. Nor shall Lender be
responsible for any act, error, omission, neglect or default under the terms of any Letter of Credit or any Related Documents or
otherwise, or for any insolvency or failure in business, of the LC Issuer or any of the correspondents of Lender or the LC Issuer.
None of the foregoing shall affect, impair, or prevent the vesting of any of Lender’s rights or powers hereunder, or any
Borrower’s obligations hereunder. In furtherance of and extension of and not in limitation of the specific provisions hereinabove
set forth, each Borrower agrees that any action taken, and any action or omission, by Lender, the LC Issuer or any of their correspondents,
in the absence of bad faith on its part, under or in connection with any Letter of Credit or the related drafts, instruments or
demands, documents or goods shall be binding on such Borrower and shall not put Lender, the LC Issuer or any of their correspondents
under any resulting liability to Lender.

 

9.                 
Each Borrower agrees to procure promptly any necessary import and export and other licenses for the import or export or
shipping of the goods or payment therefor, to comply with all foreign and domestic governmental regulations in regard to the shipment
of the goods or the financing thereof, to furnish such certificates in that respect as Lender may at any time require, to keep
the goods adequately covered by insurance satisfactory in all respects to Lender, with companies satisfactory to Lender, and to
assign the policies and/or certificates of insurance to Lender, or to make the loss or adjustment, if any, payable to Lender, at
Lender’s option, and to furnish Lender promptly on demand with evidence of acceptance by the insurers of such assignment.

 

    3

    

    

 

10.             
Each Borrower hereby certifies, covenants and agrees that no shipments will be made or other transactions undertaken under
any Letter of Credit in violation of the laws of the United States, any applicable foreign law or the applicable regulations of
any United States or foreign governmental agency or authority.

 

11.             
In furtherance of and not in limitation of the provisions of this Agreement, as security for the Obligations, each Borrower
hereby grants to Lender a security interest in, and recognizes and admits Lender’s ownership in and unqualified right to
the possession and disposal of, (a) all goods shipped under, pursuant to or in connection with each Letter of Credit or related
in any way to any Letter of Credit, (b) any and all documents of title, bills of lading, shipping documents, warehouse receipts,
securities, chattel paper, policies and/or certificates of insurance and other documents and instruments of any kind and nature
in any way accompanying, related to or arising out of any credit and the goods related thereto and to any drafts, instruments,
demands or acceptances drawn or made or purportedly drawn or made thereunder (whether or not such goods, documents or other items
specified above be released to a Borrower, or upon a Borrower’s order, on trust or bailee receipt or otherwise), (c) any
and all accounts, accounts receivable, contract rights, inventory, general intangibles, claims, credits, monies, demands and patent
and trademark rights related to or arising out of any such Letter of Credit or the goods; (d) all monies on account with Lender
or any party acting on Lender’s behalf, and (e) to the extent not otherwise included, all proceeds of any and all of the
foregoing. Each Borrower represents, warrants, covenants and agrees that upon delivery of any goods financed by the Letter of Credits
to a Borrower such goods shall be the exclusive property of such Borrower, subject only to a Lien in favor of Lender. In addition
to any rights now or hereafter granted under applicable law and not by way of limitation of any such rights, upon the occurrence
of an Event of Default, any deposit or other sums at any time properly credited by or due from Lender for the account of Borrowers
may be applied by Lender by way of set-off to the payment of any of the Obligations without any notice to any Borrower.

 

12.             
In the event that any Letter of Credit Obligations, whether or not then due or payable, shall for any reason be outstanding
on the Termination Date, each Borrower will either (a) cause the underlying Letter of Credit to be returned and canceled and each
corresponding Letter of Credit Obligation to be terminated, or (b) pay to Lender, in immediately available funds, an amount equal
to 105% of the maximum amount then available to be drawn under all Letters of Credit in favor of Borrowers not so returned and
canceled to be held by Lender as cash collateral in an account under the exclusive dominion and control of Lender (the “Cash
Collateral Account”).

 

13.             
In connection with all Letters of Credit, each Borrower, hereby appoints Lender, or its designee, as its attorney, with
full power and authority (i) to sign and/or endorse such Borrower’s name upon any warehouse or other receipts, letter of
credit applications and acceptances; (ii) to sign such Borrower’s name on bills of lading; (iii) to clear Inventory through
the United States of America Customs Department (“Customs”) in the name of such Borrower or Lender or Lender’s
designee, and to sign and deliver to Customs officials powers of attorney in the name of such Borrower for such purpose; (iv) to
complete in the name of Lender, or Lender’s designee, any order, sale or transaction, obtain the necessary documents in connection
therewith, and collect the proceeds thereof; (v) to clear and resolve any questions of non-compliance of documents; (vi) to give
any instructions as to acceptance or rejection of any documents or goods; (vii) to execute any and all applications for steamship
or airways guarantees, indemnities or delivery orders; (viii) to grant any extensions of the maturity of, time of payment for,
or time of presentation of, any drafts, acceptances, or documents; and (ix) to agree to any amendments, renewals, extensions, modifications,
changes or cancellation of any of the terms or conditions of any of the applications, Letters of Credit, drafts or acceptances;
all in Lender’s sole name, and the LC Issuer shall be entitled to comply with and honor any and all such documents or instruments
executed by or received solely from Lender; all without notice to or consent from Borrower. Neither Lender nor its attorneys will
be liable for any acts or omissions nor for any error of judgment or mistakes of fact or law, except for Lender’s or its
attorney’s gross (not mere) negligence or willful misconduct. This power, being coupled with an interest, is irrevocable
as long as any Letters of Credit remain outstanding.

 

    4

    

    

 

14.             
In the event Lender shall incur any Letter of Credit Obligation, Borrowers agree to pay Lender the fees, charges and commissions
set for on Attachment A to this Schedule A and shall reimburse Lender for all fees and charges paid by lender on account of any
Letter of Credit or Letter of Credit Obligations to the LC Issuer.

 

    5

    

    

 

ATTACHMENT A

 

LETTERS OF CREDIT

 

FEES, CHARGES AND COMMISSIONS

 

	LC Issuer - Bank Charges:	 
	Wire Transfer	$75
	Issuance of Check	$45
	Letter of Credit:	 
	Issuance	$125
	Amendment/Discrepancy	$150
	Cable/Telex Notification	$120
	Courier	$50
	Air Freight Release:	 
	Steamship Guarantee	$50
	Payment Commission (Sight & Time)	0.3% or $150 min.
	Processing Fee	$40 per invoice
	Cancellation Fee	$125
	Acceptance Time Payment	2.5% per annum or $175 min.
	Stand-by Letter of Credit:	 
	Issuance	$250
	Commission Fee	1.5% per annum or $300 min.
	Amendment/Discrepancy	$175
	Cable/Telex Notification	$120
	Courier	$50
	Lender Charges (per billing):	 
	Courier Service (if used)	$50 for domestic / $75 min. for overseas
	Petties	$20 - $45
	Telephone	$17.50 - $35
	Fax	$25 - $50

 

    

    

    

 

SCHEDULE II

 

CONDITIONS PRECEDENT

 

The following items
must be received by Lender in form and substance satisfactory to Lender on or prior to the date of the initial Loan:

 

1.                 
this Agreement duly executed by each Credit Party;

 

2.                 
the Note duly executed by each Borrower;

 

3.                 
the Credit Documents which evidence the Star Credit Facility;

 

4.                 
acknowledgement copies of proper financing statements (Form UCC-l) duly filed under the UCC in all jurisdictions as may
be necessary or, in the opinion of Lender, desirable to perfect Lender’s Lien on the Collateral;

 

5.                 
certified copies of UCC, tax lien and judgment searches, or other evidence satisfactory to Lender, listing all effective
financing statements which name each Credit Party (under present name, any previous name or any trade or doing business name) as
debtor and covering all jurisdictions requested by Lender, together with copies of such other financing statements;

 

6.                 
duly executed Intellectual Property Security Agreement from each Credit Party which owns Intellectual Property;

 

7.                 
evidence of the completion of all other recordings and filings (including UCC-3 termination statements and other Lien release
documentation) as may be necessary or, in the opinion of and at the request of Lender, desirable to perfect Lender’s Lien
on the Collateral and ensure such Collateral is free and clear of other Liens;

 

8.                 
Powers of Attorney duly executed by each Corporate Credit Party other than Digirad Corporation;

 

9.                 
control letters from (i) all issuers of uncertificated securities and financial assets held by any Corporate Credit Party,
(ii) all securities intermediaries with respect to all securities accounts and securities entitlements of each Corporate Credit
Party, and (iii) all futures commission agents and clearing houses with respect to all commodities contracts and commodities accounts
held by Borrower;

 

10.             
copies of a duly executed payoff letter, in form and substance reasonably satisfactory to Lender, by and between all parties
to the loan documents between any Borrower and Premier Bank (“Prior Lender”) evidencing repayment of part of
outstanding obligations to Prior Lender, together with (a) UCC-3 or other appropriate amendment statements, manually signed by
the Prior Lender releasing all liens of Prior Lender upon any of the personal property of each Credit Party except Equipment, and
(b) termination of all blocked account agreements, bank agency agreements or other similar agreements or arrangements or arrangements
in favor of Prior Lender or relating to the Obligations to Prior Lender;

 

    

    

    

 

11.             
duly executed originals of a Request for Loan, dated the Closing Date, with respect to the initial Revolving Credit Advance
to be requested by Borrowing Representative on the Closing Date;

 

12.             
duly executed originals of a letter of direction from Borrowing Representative addressed to Lender, with respect to disbursement
on the Closing Date of the proceeds of the initial Loan;

 

13.             
for each Corporate Credit Party, such Person’s (a) charter and all amendments thereto, (b) good standing certificates
(including verification of tax status) in its state of incorporation and (c) good standing certificates (including verification
of tax status) and certificates of qualification to conduct business in each jurisdiction where its ownership or lease of property
or the conduct of its business requires such qualification, each dated a recent date prior to the Closing Date and certified by
the applicable Secretary of State or other authorized Governmental Authority;

 

14.             
a certificate of an officer of each Corporate Credit Party in the form of Exhibit G together with copies of: (a)
such Person’s bylaws or operating agreement, together with all amendments thereto and (b) resolutions of such Person’s
Board of Directors, Members, Managers, and stockholders, members, approving and authorizing the execution, delivery and performance
of the Credit Documents to which such Person is a party and the transactions to be consummated in connection therewith, each certified
as of the Closing Date by such Person’s corporate secretary or an assistant secretary as being in full force and effect without
any modification or amendment;

 

15.             
for each Corporate Credit Party, signature and incumbency certificates of the officers of each such Person executing any
of the Credit Documents, certified as of the Closing Date by such Person’s corporate secretary or an assistant secretary
as being true, accurate, correct and complete;

 

16.             
evidence satisfactory to Lender that, as of the Closing Date, Cash Management Systems complying with Schedule IV
the Agreement have been established and are currently being maintained in the manner set forth in such Schedule IV, together
with copies of a duly executed blocked account, reasonably satisfactory to Lender, with the banks as required by Schedule IV

 

17.             
[intentionally omitted];

 

18.             
a letter from Digirad Corporation to their independent auditors in the form of Exhibit F authorizing the independent
certified public accountants of the Credit Parties to communicate with Lender and a letter from such auditors acknowledging Lender’s
reliance on the auditor’s certification of past and future Financial Statements;

 

19.             
duly executed originals of account debtor notification letters in the form of Exhibit H executed in blank by each
Corporate Credit Party other than Digirad Corporation;

 

    2

    

    

 

20.             
unless otherwise agreed to in writing by lender, warehouse waivers, landlord waivers and consents, bailee letters and mortgagee
agreements of all Borrowers’ leased or owned locations where Collateral is held;

 

21.             
Mortgages covering all of the Real Estate (the “Mortgaged Properties”) together with: (a) title insurance
policies, current as-built surveys, zoning letters and certificates of occupancy; (b) evidence that counterparts of the mortgages
have been recorded in all places to the extent necessary or desirable, in the judgment of Lender, to create a valid and enforceable
first priority lien (subject to Permitted Liens) on each Mortgaged Property in favor of Lender (or in favor of such other trustee
as may be required or desired under local law); and (c) an opinion of counsel in each state in which any Mortgaged Property is
located;

 

22.             
any and all Subordination Agreements and/or intercreditor agreements as Lender shall have deemed necessary or appropriate
with respect to any Indebtedness of any Credit Party;

 

23.             
Phase I Environmental Site Assessment Reports, consistent with American Society of Testing and Materials (ASTM) Standard
E 1527-94, and applicable state requirements, on all of the Real Property, prepared by environmental engineers reasonably satisfactory
to Lender, all in form and substance reasonably satisfactory to Lender, in its sole discretion; and Lender shall have further received
such environmental review and audit reports, including Phase I reports, with respect to the Real Property of any Credit Party as
Lender shall have requested, and Lender shall be satisfied, in its sole discretion, with the contents of all such environmental
reports. Lender shall have received letters executed by the environmental firms preparing such environmental reports, in form and
substance reasonably satisfactory to Lender to rely on such reports;]

 

24.             
Lender shall have received appraisals as to all Real Property owned by each Credit Party, each of which shall be in form
and substance reasonably satisfactory to Lender;]

 

25.             
the Financial Statements, Projections and other materials requested by Lender certified by each Borrower’s Chief Financial
Officer; and

 

26.             
such other certificates, documents and agreements respecting any Credit Party as Lender may, in its sole discretion, request.

 

    3

    

    

 

SCHEDULE III

 

FINANCIAL COVENANTS

 

1.                 
Minimum Tangible Net Worth. Borrowers shall not permit at Fiscal Year End December 31, 2020 its Tangible Net Worth
to be less than (a) $1,250,000 (including (i) $1,000,000 of Indebtedness due on the effective date hereof and as otherwise due
Premier Bank as documented by Intercreditor Agreement of even date and Extension and Modification Agreement of even date executed
by Borrowers and Premier Bank and (ii) $1,500,000 of suppressed availability represented by the real estate owned or indirectly
owned by Star Real Estate Holdings USA, Inc.) and such amount as Borrowers and Lender shall agree in each Fiscal Year thereafter,
but in no event less than $1,250,000 unless specifically agreed to in writing.

 

2.                 
Debt Service Coverage. Borrowers shall maintain for each Borrower a Debt Service Coverage Ratio of greater than 1.1:1
for Fiscal Year End December 31, 2020 and such Ratio as Borrowers and Lender shall agree in each Fiscal Year thereafter but in
no event less than 1.1:1 unless specifically agreed to in writing. “Debt Service Coverage Ratio” is defined as each
Borrower’s Operating Cash Flow (its net income plus depreciation and amortization, plus interest expense plus other non-cash
items) divided by principal, interest, lease payments, subordinated debt payments and Earn-out payments due EdgeBuilder Wall Panels,
Inc./Glenbrook Lumber and Supply, Inc.

 

3.                 
Net Income: Borrowers shall earn and declare minimum net income post tax of $650,000 as of Fiscal Year End December
31, 2020 and such minimum net income post-tax of such amounts as Borrowers and Lender shall agree in each Fiscal Year thereafter
but in no event less than $650,000 unless specifically agreed to in writing.

 

    

    

    

 

SCHEDULE IV

 

CASH MANAGEMENT

 

Each Borrower agrees to establish, and
to maintain, until the Termination Date, the cash management system described below:

 

1.                 
Commencing on the Closing Date and until the Termination Date, each Borrower will as required herein irrevocably direct
all present and future Account Debtors and other Persons obligated to make payments constituting Collateral to make such payments
directly to either the Collateral Account or to Borrower at 8 West 40th Street, 14th Floor, New York, New
York 10018. The Collateral Account will be subject to an agreement which will afford Lender exclusive control over the deposits
therein within the meaning of the UCC (“Account Control Agreement”). All of Borrower’s invoices, account statements
and other written or oral communications directing, instructing, demanding or requesting payment of any Account of Borrower or
any other amount constituting Collateral shall conspicuously direct that all payments be made to the Collateral Account or to Borrower
at 8 West 40th Street, 14th Floor, New York, New York 10018 and shall include the preceding address or the
address for the Collateral Account. If, notwithstanding the instructions to Account Debtors to make payments to the Collateral
Account or to Borrower at 8 West 40th Street, 14th Floor, New York, New York 10018, Borrower receives any
payments, Borrower shall immediately deposit such payments into the Collateral Account or immediately forward to Lender. Until
so deposited, Borrower shall hold all such payments in trust for and as the property of Lender and shall not commingle such payments
with any of its other funds or property. In the event that Borrowers do not comply with the conditions set forth herein, Lender
may charge to Borrowers’ account a fee equal to fifteen percent (15%) of each payment that violates this paragraph of this
Agreement.

 

2.                 
Each Borrower may maintain, in its name, accounts (the “Disbursement Accounts”) at a bank or banks acceptable
to Lender into which Lender shall, from time to time, deposit proceeds of Loans for use solely in accordance with the terms of
this Agreement. All of the Disbursement Accounts are listed on Disclosure Schedule 7.17.

 

    

    

    

 

SCHEDULE V

 

ADDRESSES FOR NOTICES

 

	Lender’s Address:	 
	 	 
	Name:	Gerber Finance Inc.
	Address:	8 West 40th Street
	 	14th Floor
	 	New York, New York 10018
	Attention:	Gerald L. Joseph
	Telephone:	(212) 888-3833
	Facsimile:	(212) 888-1637
	 	 
	Each Corporate Credit Party c/o Digirad Corporation
	 
	Address:	53 Forest Avenue
		Old Greenwich, CT 06870
	Attention:	Chief Financial Officer
	Telephone:	(203) 489-9502

 

    

    

    

 

SCHEDULE VI

 

BORROWING BASE CERTIFICATE REPORTING

 

Additional Reporting
Requirements

 

With Every Borrowing Base Certificate (Section 8.1(f)):

		•	AR Report for each Borrower (detailed and Summary)

		•	Inventory Stock Report for each Borrower (Detailed)

		•	Inventory G/L Report for each Borrower (should show inventory
movement)

		•	Sales Journal

		•	Cash Receipts Journal

		•	Customer Deposit Report

		•	Cashiers Report (Invoice/Payments/Returns report) for each
Borrower

		•	AP report for each Borrower

		•	Sales Tax Report

		•	Retainage Report

		•	Random Customer Invoice selection with bill of lading/proof
of delivery as backup

		•	Up to 10 Vendor invoices with bill of lading/proof of delivery
as backup

 

With Monthly Reports (Section 8.1(b)):

		•	Monthly Statement

		•	Compliance Certificate

		•	Interim Financials

		•	Accounts payable schedule

		•	Cash Receipts

		•	Detailed and Summary A/R aging

		•	Sales Journal

		•	AIA Certificates

		•	Sales Tax report

		•	Bank Statements

		•	Cashiers Report (Invoice/Payments/Returns report)

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