Document:

Exhibit 10.1

IT ASSET CONTRIBUTION AGREEMENT

 

 

THIS ASSET CONTRIBUTION AGREEMENT
(this “Agreement”), dated as of the 23rd day of October, 2021, is entered into by and among, LZG INTERNATIONAL,
INC., a Florida corporation (“LZGI”); FATBRAIN LLC, a Delaware limited liability company, (“FatBrain”).
LZGI, and FatBrain are referred to singularly as a “Party” and collectively as the “Parties.”

 

WITNESSETH:

 

WHEREAS, FatBrain owns
certain intellectual property (IT), including, patents, patents pending, patents in preparation, proprietary technology, development plans,
contractual rights as listed in Exhibit A, which is attached hereto and made a part of this Agreement (the “FatBrain IT”);
and

 

WHEREAS, LZGI wishes to
purchase and acquire the FatBrain IT, and FatBrain desires to sell and contribute such intellectual property to LZGI in exchange for shares
of common stock of LZGI; and

 

WHEREAS, LZGI, and FatBrain
propose to enter into this Agreement which provides, among other things, that FatBrain will transfer and sell the FatBrain IT to LZGI,
in exchange for such number of shares of LZGI’s common stock as set forth herein (the “IT Contribution”), on
the terms and conditions set forth herein and such additional items as more fully described in this Agreement.

 

NOW, THEREFORE, in consideration,
of the promises and of the mutual representations, warranties and agreements set forth herein, the Parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS

 

Section 1.01.Definitions. The following
terms shall have the following respective meanings:

 

	 	 	 
	“IT”	 	
    the FatBrain IT;

     

	“Closing”	 	
    the closing of the transactions contemplated by this
    Agreement;

     

	“Completion”	  	
    completion of acquisition of the IT (as such term
    is defined below) by LZGI and issuance of the Exchange Shares (as such term is defined below) in accordance with the terms and conditions
    of this Agreement;

     

	“Encumbrance”	 	
    shall mean any mortgage, charge, pledge, lien, (otherwise
    than arising by statute or operation of law), equities, hypothecation or other encumbrance, priority or security interest, pre-emptive
    right, deferred purchase, title retention, leasing, sale-and-repurchase or sale-and-leaseback arrangement whatsoever over or in any property,
    IT or rights of whatsoever nature and includes any agreement for any of the same and reference to “Encumbrances” shall be
    construed accordingly;

     

	“Person”	 	
    any individual, firm, company, government, state or
    agency of a state or any joint venture, association or partnership (whether or not having separate legal personality);

     

	“US”	 	
    United States of America; and

     

	
    “United States
    Dollars”

    or “US$”
	 	United States dollars.

 

Section 1.02.Rules of Construction.

 

(a)           
Unless the context otherwise requires, as used in this Agreement: (i) “including” means “including, without limitation”;
(ii) words in the singular include the plural; (iii) words in the plural include the singular; (iv) words applicable to one gender shall
be construed to apply to each gender; (v) the terms “hereof,” “herein,” “hereby,” “hereto”
and derivative or similar words refer to this entire Agreement; (vi) the terms “Article” and “Section” shall refer
to the specified Article or Section of or to this Agreement; and (vii) the term “day” shall refer to calendar days.

 

(b)          
Titles and headings to Articles and Sections are inserted for convenience of reference only, and are not intended to be a part
of or to affect the meaning or interpretation of this Agreement.

 

ARTICLE II

THE ASSET PURCHASE 

Section 2.01. IT Asset
Contribution.

(a)           
Subject to and upon the terms and conditions of this Agreement, on the Closing Date (as defined hereafter), LZGI shall acquire
the FatBrain ITwith all of such IT acquired being free from all Encumbrances together with all rights now or hereafter attaching thereto,
and LZGI shall be the sole owner of the IT.

(b)       As
consideration for the contribution of the FatBrain IT, LZGI shall issue to FatBrain Ten Million (10,000,000) shares of LZGI’s common
stock, par value US$0.001 (the “Exchange Shares”), which shares shall constitute voting control of LGZI.

(c)       The
Asset Contribution shall take place upon the terms and conditions provided for in this Agreement and in accordance with applicable law.
If the Closing does not occur as set forth in Section 2.02 of this Agreement due to one Party’s failure to perform, then the other
Party may terminate the Agreement.

Section 2.02.Closing Location. The Closing
of the IT Asset Contribution and the other transactions contemplated by this Agreement will occur as soon as possible (the “Closing
Date”), at the offices of Kline Law Group PC, 15615 Alton Pkwy, Ste. 400, Irvine CA 92618.

 

Section 2.03.Contributors’ Closing
and Post-Closing Items.

 

(a)           
At the Closing, Contributors shall tender to LZGI:

 

		(1)	the Bill of Sale from FatBrain in a form acceptable to LZGI and its legal counsel, together with such
other separate instruments of sale, transfer or assignment as LZGI reasonably requests for the transfer of ownership of the IP IT to LZGI;

		(2)	a certificate signed by FatBrain certifying that the conditions in Section 8.01(b) have been satisfied.

 

(b)          
Following the Closing, the Contributors shall provide in a timely manner all documents, purchase agreements and any other instruments
reasonably required to effect the transfer of ownership of the IT to LZGI.

 

Section 2.04.LZGI’s Closing and Post-Closing
Items.

 

(a)           
At the Closing, LZGI will tender to Contributors:

 

(1)       A
certified copy(ies) of resolutions of the Board of Directors of LZGI in a form satisfactory to FatBrain, acting reasonably, authorizing:

 

(i)       the
execution and delivery of this Agreement by LZGI; and

 

(ii)       the
issuance of the Exchange Shares to the Contributors.

 

(2)       Share
certificates, registered in the names of the Contributors as set forth above representing all of the Exchange Shares; and

 

(3)       A
certificate executed by a duly appointed officer of LZGI certifying that the conditions in Section 9.01(b) have been satisfied.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

Section 3.01.Each
Party represents and warrants to the other Party that each of the warranties it makes is accurate in all respects and not misleading as
at the date of this Agreement.

 

Section 3.02.Each
Party undertakes to disclose in writing to the other Party anything which is or may constitute a breach of or be inconsistent with any
of the warranties immediately upon the same coming to its notice at the time of and after Completion.

 

Section 3.03.Each Party agrees that each of the
warranties it makes shall be construed as a separate and independent warranty and (except where expressly provided to the contrary) shall
not be limited or restricted by reference to or inference from the terms of any other warranty or any other term of this Agreement.

 

Section 3.04.Each
Party acknowledges that the restrictions contained in Section 11.01 shall continue to apply after the Closing without limit in time.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF LZGI

 

LZGI represents and warrants to the Contributors as follows:

Section 4.01.Organization, Standing and Authority;
Foreign Qualification. LZGI is a corporation duly organized, validly existing and in good standing under the laws of the State of
Florida and has all requisite corporate power and authority to own, lease and operate its properties and to conduct its business as presently
conducted and as proposed to be conducted and is duly qualified or licensed as a foreign corporation in good standing in Utah and in each
other jurisdiction in which the character of its properties or the nature of its business activities require such qualification.

 

Section 4.02.Corporate Authorization. The
execution, delivery and performance by LZGI of this Agreement and the consummation of the transactions contemplated hereby have been duly
authorized by all necessary corporate action on the part of the directors and/or shareholders of LZGI, and this Agreement constitutes
a valid and binding agreement of LZGI. The Exchange Shares to be issued in accordance with this Agreement shall be duly authorized and,
upon such issuance, will be validly issued, fully paid and non-assessable.

 

Section 4.03.Capitalization. (a) LZGI’s
authorized capital stock is One Hundred Million (100,000,000) authorized shares of common stock, par value $0.001 (the “Common Stock”)
and Twenty Million Shares of Preferred Stock, par value $0.001 per share (the “Preferred Stock”) and as of the Closing Date
prior to the issuance of the Exchange Shares, the Common Stock outstanding is Two Hundred Fifty Thousand Five Hundred Fifty-Six (250,556)
and no Preferred Stock, all of which are duly authorized, validly issued, fully paid and non-assessable. Other than as set forth on Schedule
4.03 hereto, there is no commitment, contract of option in favor of any person to issue any Common Stock or Preferred Stock or any
other security of LZGI.

 

Section 4.04.No Conflict. The execution,
delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

 

(a)           
violate any provision of the Articles of Incorporation, Bylaws or other charter or organizational document of LZGI;

 

(b)          
violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give
any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under,
any contract to which LZGI is a party or by or to which either of its assets or properties, may be bound or subject;

 

(c)           
violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or
binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon LZGI
or upon the securities, IT or business of LZGI;

 

(d)          
violate any statute, law or regulation of any jurisdiction as such statute, law or regulation relates to LZGI or to the securities,
properties or business of LZGI; or

 

(e)           
result in the breach of any of the terms or conditions of, constitute a default under, or otherwise cause an impairment of, any
permit or license held by LZGI.

 

Section 4.05.Litigation. There is no litigation,
suit, proceeding, action or claim at law or in equity, pending or to LZGI’s best knowledge threatened against or affecting LZGI
or involving any of LZGI’s property or IT, before any court, agency, authority or arbitration tribunal, including, without limitation,
any product liability, workers' compensation or wrongful dismissal claims, or claims, actions, suits or proceedings relating to toxic
materials, hazardous substances, pollution or the environment. LZGI is not subject to or in default with respect to any notice, order,
writ, injunction or decree of any court, agency, authority or arbitration tribunal.

 

Section 4.06.Compliance with Laws. To the
best knowledge of LZGI, it has complied with all laws, municipal bylaws, regulations, rules, orders, judgments, decrees and other requirements
and policies imposed by any governmental authority applicable to it, its properties or the operation of its business, except where the
failure to comply will not have a material adverse effect on the business, properties, financial condition or earnings of LZGI.

 

Section 4.07.Material Information. This
Agreement and all other information provided, in writing, by LZGI or representatives thereof to the Contributors, taken as a whole, do
not contain any untrue statement of a material fact or omit to state a material fact necessary to make any statement contained herein
or therein not misleading. There are no facts or conditions which have not been disclosed to the Contributors in writing which, individually
or in the aggregate, could have a material adverse effect on LZGI or a material adverse effect on the ability of LZGI to perform any of
its obligations pursuant to this Agreement.

 

Section 4.08.Brokerage. No broker or finder
has acted, directly or indirectly, for LZGI nor did LZGI incur any finder’s fee or other commission, in connection with the transactions
contemplated by this Agreement.

 

Section 4.09. Employees. For the 5 years
prior to the date of this Agreement, LZGI has had no employees. LZGI is party to no employment agreement and has no liability to any employee
or former employee, consultant, contractor, agent or other person.

 

Section 4.14. Contracts. Schedule 4.14
sets for a list of every contract to which LZGI is a party or by which LZGI or any of its property is bound, a complete and accurate copy
of which (or, in the case of any oral contract, a complete and accurate summary of which) has been delivered to the Contributors. Neither
LZGI nor the other party to any such contract is in breach of any of the terms thereof.

 

Section 4.15. Insurance. The types of insurance
policies held by LZGI, as well as the limits of liability thereon, are set forth on Schedule 4.15. Accurate and complete copies of all
such policies have been delivered to the Contributors.

 

Section 4.16. SEC Documents. LZGI has filed
all reports, schedules, forms, statements and other documents as required by the United States Securities and Exchange Commission (“SEC”)
and LZGI has delivered or made available to Holdings all reports, schedules, forms, statements and other documents filed with the SEC
(collectively, and in each case including all exhibits and schedules thereto and documents incorporated by reference therein, the “LZGI
SEC Documents”). The LZGI SEC Documents complied in all material respects with the requirements of the Securities Act or the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), as the case may be, and the rules and regulations of the
SEC promulgated thereunder applicable to such LZGI SEC Documents, and none of the LZGI SEC Documents (including any and all consolidated
financial statements included therein) as of such date contained any untrue statement of a material fact or omitted to state a material
fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. Except to the extent revised or superseded by a subsequent filing with the SEC (a copy of which has been provided
to Holdings prior to the date of this Agreement), none of the LZGI SEC Documents contains any untrue statement of a material fact or omits
to state any material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. The consolidated financial statements of LZGI included
in such LZGI SEC Documents (the “LZGI Financial Statements”) comply as to form in all material respects with applicable
accounting requirements and the published rules and regulations of the SEC with respect thereto, have been prepared in accordance with
generally accepted accounting principles (except, in the case of unaudited consolidated quarterly statements, as permitted by Form 10-Q
of the SEC) applied on a consistent basis during the periods involved (except as may be indicated in the notes thereto) and fairly present
the consolidated financial position of LZGI and its consolidated subsidiaries as of the dates thereof and the consolidated results of
operations and changes in cash flows for the periods then ended (subject, in the case of unaudited quarterly statements, to normal year-end
audit adjustments as determined by LZGI’s independent accountants). Except as set forth in the LZGI SEC Documents, at the date of
the most recent audited financial statements of LZGI included in the LZGI SEC Documents, neither LZGI nor any of its subsidiaries had,
and since such date neither LZGI nor any of such subsidiaries has incurred, any liabilities or obligations of any nature (whether accrued,
absolute, contingent or otherwise) which, individually or in the aggregate, could reasonably be expected to be materially adverse to (a)
the business, results of operations, condition (financial or otherwise), assets or liabilities of a Party or (b) the ability of a Party
to consummate the Transactions.

 

Section 4.17. Undisclosed Liabilities. Neither
LZGI nor any of its subsidiaries has any liability (except for (a) liabilities shown on the balance sheet contained in the most recent
Form 10-Q filed with the SEC, (b) liabilities which have arisen since the date of the balance sheet contained in the most recent Form
10-Q filed with the SEC in the ordinary course of business which do not exceed $1,000.00 in the aggregate and (c) contractual and other
Liabilities incurred in the ordinary course of business which are not required by GAAP to be reflected on a balance sheet.

 

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF CONTRIBUTORS

 

FatBrain represents and warrant to LZGI as follows:

 

Section 5.01.Standing and Authority. FatBrain
has all requisite power and authority to own, lease and operate the IT and to conduct any business related to the IT as presently conducted
and as proposed to be conducted and is duly qualified or licensed in each jurisdiction in which the character of the IT or the nature
of the business activities related to the IT require such qualification.

 

Section 5.02.Authorization. The execution,
delivery and performance by the Contributors of this Agreement and the consummation of the transactions contemplated hereby have been
duly authorized by all necessary actions, as the case may be, on the part of the Contributors, and FatBrain has duly executed and delivered
this Agreement and this Agreement constitutes a valid and binding agreement of the Contributors. FatBrain has the authority and legal
capacity to sell the IT as contemplated hereunder.

 

Section 5.03.Title of the IT Asset. FatBrain
holds one hundred percent (100%) of the FatBrain IT, , without any Encumbrances thereon whatsoever. Upon Completion, LZGI shall be the
beneficial and record holder of the IT, without any Encumbrances thereon. Except for this Agreement, the IT are not subject to any contracts,
agreements or other arrangements under which FatBrain or any other Person has granted, or is obligated to grant, rights to others to use,
reproduce, own, control, market or exploit the IT or any part of the IT.

 

Section 5.04.Sale of Exchange Shares. Upon
completion of the purchase and sale of the Exchange Shares, the Contributors shall be the beneficial and record holder of the Exchange
Shares.

 

Section 5.05.Affiliated Party; Investment Risk.
FatBrain understands that an investment in LZGI includes a high degree of risk, they has such knowledge and experience in financial and
business matters, investments, securities and private placements as to be capable of evaluating the merits and risks of their investment
in the Exchange Shares, are in a financial position to hold the Exchange Shares for an indefinite period of time, and are able to bear
the economic risk of, and withstand a complete loss of such investment in the Exchange Shares.

 

Section 5.06.Cooperation. If required by
applicable securities laws or order of a securities regulatory authority, stock exchange or other regulatory authority, the Contributors
will execute, deliver, file and otherwise assist LZGI in filing such reports, undertakings and other documents as may be required with
respect to the issuance of the Exchange Shares.

 

Section 5.07.Tax Advice. FatBrain is solely
responsible for obtaining such legal, including tax, advice as they considers necessary or appropriate in connection with the execution,
delivery and performance by the Contributors of this Agreement and the transactions contemplated herein.

 

Section 5.08.Investment Representations.
FatBrain acknowledges and agrees that:

 

(a) the Exchange Shares
have not been registered under the Securities Act of 1933, as amended (the “1933 Act”), or under any state securities
or “blue sky” laws of any state of the United States, and are being offered only in a transaction not involving any public
offering within the meaning of the 1933 Act, and, unless so registered, may not be offered or sold, directly or indirectly, in the United
States or to U.S. Persons (as defined herein), except in accordance with the provisions of Regulation S under the 1933 Act, pursuant to
an effective registration statement under the 1933 Act, or pursuant to an exemption from, or in a transaction not subject to, the registration
requirements of the 1933 Act, and in each case only in accordance with applicable state securities laws;

 

(b) the Company has not
undertaken, and will have no obligation, to register any of the Securities under the 1933 Act;

   

(d) by execution hereof
the Contributor has waived the need for the Company to communicate its acceptance of the purchase of the Exchange Shares pursuant to this
Agreement;

 

(e) the Company is entitled
to rely on the representations and warranties and the statements and answers of the Contributor contained in this Agreement, and the Contributor
will hold harmless the Company from any loss or damage it may suffer as a result of the Contributor’s failure to correctly complete
this Agreement;

 

(f) the Contributor is an
“accredited investor,” as such term is defined in Rule 501(a) of Regulation D promulgated by the Commission under the
Securities Act and is experienced in investments and business matters, has made investments of a speculative nature and has purchased
securities of United States publicly-owned companies in private placements in the past and, with its representatives, has such knowledge
and experience in financial, tax and other business matters as to enable such Contributor to utilize the information made available by
the Company to evaluate the merits and risks of and to make an informed investment decision with respect to the proposed purchase, which
represents a speculative investment. Contributor is able to bear the risk of such investment for an indefinite period and to afford a
complete loss thereof. Contributor is not required to be registered as a broker-dealer under Section 15 of the Securities Exchange Act
of 1934, as amended;

 

(g) the Contributor will
acquire the Shares for its own account for investment and not with a view toward, or for resale in connection with, the public sale or
any distribution thereof in violation of the Securities Act or any applicable state securities law, and has no direct or indirect arrangement
or understandings with any other person or entity to distribute or regarding the distribution of such Shares;

 

(h) the Contributor understands
and agrees that the Shares are “restricted securities” and have not been registered under the Securities Act or any applicable
state securities laws by reason of their issuance in a transaction that does not require registration under the Securities Act, and that
such Shares must be held indefinitely unless a subsequent disposition is registered under the Securities Act or any applicable state securities
laws or is exempt from such registration;

 

(i) the Contributor has
been advised to consult the Contributor’s own legal, tax and other advisors with respect to the merits and risks of an investment
in the Exchange Shares and with respect to applicable resale restrictions and the Contributor is solely responsible (and the Company is
not in any way responsible) for compliance with applicable resale restrictions;

 

(j) the Company has advised
the Contributor that the Company is relying on an exemption from the requirements to provide the Contributor with a prospectus to sell
the Exchange Shares and, as a consequence of acquiring the Exchange Shares pursuant to such exemption certain protections, rights and
remedies provided by the applicable securities legislation will not be available to the Contributor;

 

(k) neither the SEC nor
any other securities commission or similar regulatory authority has reviewed or passed on the merits of the Exchange Shares; no documents
in connection with this Offering have been reviewed by the SEC or any state securities administrators; there is no government or other
insurance covering any of the Exchange Shares;

 

(l)this Agreement is not
enforceable by the Contributor unless it has been accepted by the Company, and the Contributor acknowledges and agrees that the Company
reserves the right to reject any Agreement for any reason.

 

Section 5.09Share Legend. The Exchange
Shares shall bear the following legend:

“THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, NOR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I)
IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL (REASONABLY ACCEPTABLE TO THE COMPANY), IN AN ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.”

 

Section 5.10.No Conflict. The execution,
delivery and performance of this Agreement and the completion of the transactions contemplated herein will not:

 

(a)           
violate, conflict with or result in the breach of any of the terms of, result in any modification of the effect of, otherwise give
any other contracting party the right to terminate, or constitute (or with notice or lapse of time or both constitute) a default under,
any contract to which either Contributor is a party or by or to which its IT or properties (including the IT) may be bound or subject;

 

(b)          
violate any order, judgment, injunction, award or decree of any court, arbitrator or governmental or regulatory body against, or
binding upon, or any agreement with, or condition imposed by, any governmental or regulatory body, foreign or domestic, binding upon the
Contributors, or either of them, or the IT; or

 

(c)           
violate any statute, law or regulation of any jurisdiction as such statute, law or regulation relates to either Contributor or
to the IT (including the IT).

 

Section 5.11.Compliance with Laws. To the
best of Contributor’s knowledge, Contributor is not in violation of any applicable order, judgment, injunction, award or decree
nor is he in violation of any federal, provincial, state, local, municipal or foreign law, ordinance or regulation or any other requirement
of any governmental or regulatory body, court or arbitrator, other than those violations which, in the aggregate, would not have a material
adverse effect on Contributor or his IT (including the IT) and has not received written notice that any violation is being alleged.

 

Section 5.12.Material Information. This
Agreement and all other information provided in writing by the Contributors to LZGI, taken as a whole, do not contain any untrue statement
of a material fact or omit to state a material fact necessary to make any statement contained herein or therein not misleading. There
are no facts or conditions, which have not been disclosed to LZGI in writing which, individually or in the aggregate, could have a material
adverse effect on such Contributor or the IT or a material adverse effect on the ability of such Contributor to perform any of his obligations
pursuant to this Agreement.

 

Section 5.13.Actions and Proceedings. There
are no outstanding orders, judgments, injunctions, awards or decrees of any court, governmental or regulatory body or arbitration tribunal
against or involving either Contributor or any of its IT (including the IT). There are no actions, suits or claims or legal, regulatory,
administrative or arbitration proceedings pending or, to the knowledge of Contributor, threatened against or involving Contributor or
any of its IT (including the IT).

 

ARTICLE VI

COVENANTS AND AGREEMENTS OF FATBRAIN

 

Section 6.01.Conduct of Businesses in the Ordinary
Course. From the date of this Agreement to the Closing Date, the Contributors shall each conduct the business related to the IT Assets
substantially in the manner in which it is currently conducted.

 

Section 6.02.Preservation of the IT Assets.
From the date of this Agreement to the Closing Date, FatBrain shall use its reasonable commercial efforts to preserve intact the IT and
to keep available the services, and preserve the goodwill, of its present managers, officers, employees, agents, and consultants, if any,
performing any services pertaining to the IT

 

Section 6.03.Conduct Pending the Closing Date.
From the date of this Agreement to the Closing Date: (a) FatBrain shall use its reasonable commercial efforts to conduct its affairs in
such a manner so that, except as otherwise contemplated or permitted by this Agreement, the representations and warranties contained in
Article V shall continue to be true and correct on and as of the Closing Date as if made on and as of the Closing Date; and (b) FatBrain
shall promptly notify LZGI of any event, condition or circumstance that would constitute a violation or breach of this Agreement by FatBrain.

 

Section 6.04. Corporate Examinations and Investigations.
Prior to the Closing Date, LZGI shall be entitled, through its employees and representatives, to make such reasonable investigation of
the assets, liabilities, properties, business and operations of FatBrain, and such examination of the books, records, tax returns, results
of operations and financial condition of FatBrain. Any such investigation and examination shall be conducted at reasonable times and under
reasonable circumstances and the Contributors and its employees and representatives, including without limitation, their counsel and independent
public accountants, shall cooperate fully with such representatives in connection with such reasonable review and examination.

 

ARTICLE VII

COVENANTS AND AGREEMENTS OF LZGI

 

Section 7.01. Litigation. From the date
of this Agreement to the Closing Date, LZGI shall notify FatBrain of any actions or proceedings of the type described in Section 4.05
that are threatened or commenced against LZGI or against any officer, director, employee, properties or assets of LZGI and of any requests
for information or documentary materials by any governmental or regulatory body in connection with the transactions contemplated hereby.

 

Section 7.02.Conduct of LZGI Pending the Closing.
From the date hereof through the Closing Date:

 

(a)       LZGI
shall use its best efforts to conduct its affairs in such a manner so that, except as otherwise contemplated or permitted by this Agreement,
the representations and warranties contained in Article IV shall continue to be true and correct on and as of the Closing Date as if made
on and as of the Closing Date; and

 

(b)       LZGI
shall promptly notify FatBrain of any event, condition or circumstance occurring from the date hereof through the Closing Date that would
constitute a violation or breach of this Agreement by LZGI.

 

ARTICLE VIII

CONDITIONS PRECEDENT TO THE OBLIGATION OF LZGI TO
CLOSE

 

The obligations of LZGI to be performed by it at the
Closing pursuant to this Agreement are subject to the fulfillment on or before the Closing Date, of each of the following conditions,
any one or more of which may be waived by it, to the extent permitted by law:

 

Section 8.01.Representations and Covenants.
(a) The representations and warranties of FatBrain contained in this Agreement shall be true and correct on and as of the Closing
Date with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties
that are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

 

(b)        
FatBrain shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied
with by him on or before the Closing Date. FatBrain shall have delivered to LZGI a certificate, dated the Closing Date, and signed by
it to the foregoing effect.

 

Section 8.02.Governmental Permits and Approvals.

 

(a)        All
approvals, authorizations, consents, permits and licenses from governmental and regulatory bodies required for the transactions contemplated
by this Agreement and to permit the business currently carried on by FatBrain with respect to the IT to continue to be carried on substantially
in the same manner by LZGI immediately following the Closing Date shall have been obtained and shall be in full force and effect, and
LZGI shall have been furnished with appropriate evidence, reasonably satisfactory to it, of the granting of such approvals, authorizations,
consents, permits and licenses; and

 

(b)       There
shall not have been any action taken by any court, governmental or regulatory body then prohibiting or making illegal on the Closing Date
the transactions contemplated by this Agreement.

 

Section 8.03.Third Party Consents. All
consents, permits and approvals from parties to contracts with FatBrain that may be required in connection with transactions contemplated
hereby or the continuance of such contracts in full force and effect after the Closing Date, shall have been obtained.

 

Section 8.04.Litigation. No action, suit
or proceeding shall have been instituted and be continuing or be threatened by any Person to restrain, modify or prevent the carrying
out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material
adverse effect on FatBrain or the FatBrain IT.

 

Section 8.05Due Diligence Review. LZGI
must have received results satisfactory to it, in its sole discretion, from its due diligence review of the Contributors and the IT.

 

Section 8.06Closing Documents. FatBrain
shall have executed and delivered the documents described in Section 2.03 above.

 

ARTICLE IX

CONDITIONS PRECEDENT TO THE OBLIGATION OF FATBRAIN
AND MISISON TO CLOSE

 

The obligations of the Contributors to be performed
by it at the Closing pursuant to this Agreement are subject to the fulfillment, on or before the Closing Date, of each the following conditions,
any one or more of which may be waived by the Contributors, to the extent permitted by law:

 

Section 9.01.Representations and Covenants.
(a) The representations and warranties of LZGI contained in this Agreement shall be true and correct on and as of the Closing Date
with the same force and effect as though made on and as of the Closing Date, except that any of such representations and warranties that
are given as of a particular date and relate solely to a particular date or period shall be true as of such date or period; and

 

(b)       LZGI
shall have performed and complied with all covenants and agreements required by this Agreement to be performed or complied with by it
on or before the Closing Date. LZGI shall have delivered to the Contributors a certificate dated the Closing Date, and signed by an authorized
signatory of LZGI to the foregoing effect.

 

Section 9.02.Litigation. No action, suit
or proceeding shall have been instituted and be continuing or be threatened by any Person to restrain, modify or prevent the carrying
out of the transactions contemplated hereby, or to seek damages in connection with such transactions, or that has or could have a material
adverse effect on LZGI.

 

Section 9.03.Closing Documents. LZGI shall
have executed and delivered the documents described in Section 2.04 above.

 

ARTICLE X

TERMINATION 

 

Section 10.01. Termination.Notwithstanding
anything to the contrary in this Agreement, this Agreement may be terminated and the IT Contribution and the other transactions contemplated
by this Agreement shall be abandoned at any time prior to the Closing: by mutual written consent of the Contributors and LZGI.

 

Section 10.02. Effect
of Termination. If this Agreement is terminated and the transactions contemplated hereby are abandoned as described in Section 10.01,
this Agreement shall become null and void and of no further force and effect.

 

ARTICLE XI

POST-CLOSING COVENANTS

 

Section 11.01 FatBrain’s Covenants. FatBrain hereby covenants
with LZGI and promises as follows:

 

		(a)	To take any and all actions reasonably requested by LZGI to ensure that LZGI receives all information, documents, passwords, assignments
and any other documents, consents, assignments, or information necessary for LZGI to own and operate the IT Assets.

 

		(b)	To execute any and all documents, filings or other instruments as may be necessary to transfer and assign to LZGI all of the intellectual
property related to the IT Assets.

 

MISCELLANEOUS

 

Section 11.02.Time. Time shall be of the
essence hereof.

 

Section 11.03.Notices. Any notice or other
writing required or permitted to be given hereunder or for the purposes hereof shall be sufficiently given if delivered to the Party to
whom it is given or, if mailed, by prepaid registered mail, or sent by email, addressed to such Party at:

 

 

if to FatBrain, at:

 

54 West 40 St., Suite 1123

New York, NY 10018

 

if to LZGI, at:

 

2157 S. Lincoln Street, Suite 200

Salt Lake City, Utah

 

or at such other physical address as the Party to
whom such writing is to be given shall have last notified to the Party giving the same in the manner provided in this article. Written
notice hereunder, shall be delivered personally or sent to each Party by (i) personal delivery, (ii) a nationally-recognized, next-day
courier service, (iii) first-class registered or certified mail, postage prepaid or (iv) electronic mail. In the case of delivery by certified
mail, such mailing shall be deemed to have been delivered following deposit with the U.S. Postal Service, if deposited at a United States
post office five (5) calendar days following deposit with the U.S. Postal Service. In the case of overnight delivery, delivery shall be
deemed to be completed upon receipt of the notice at the address provided. In the case of email delivery, delivery shall be deemed to
be completed upon the email message having been sent.

 

Section 11.04. Severability. If a court of
competent jurisdiction determines that any one or more of the provisions contained in this Agreement is invalid, illegal or unenforceable
in any respect in any jurisdiction, the validity, legality and enforceability of such provision or provisions shall not in any way be
affected or impaired thereby in any other jurisdiction and the validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired thereby, unless in either case as a result of such determination this Agreement would
fail in its essential purpose.

 

Section 11.05.Entire Agreement. This Agreement
constitutes the entire agreement between the Parties and supersedes all prior agreements and understandings, oral or written, by and between
any of the Parties with respect to the subject matter hereof.

 

Section 11.06.Further Assurances. The Parties
shall with reasonable diligence, do all such things and provide all such reasonable assurances as may be required to consummate the transactions
contemplated by this Agreement, and each Party shall provide such further documents or instruments required by the other Party as may
be reasonably necessary or desirable to give effect to the purpose of this Agreement and carry out its provisions whether before or after
the Closing Date.

 

Section 11.07.Waiver. Except as provided
in this Article, no action taken or inaction pursuant to this Agreement will be deemed to constitute a waiver of compliance with any warranties,
conditions or covenants contained in this Agreement and will not operate or be construed as a waiver of any subsequent breach, whether
of a similar or dissimilar nature. No waiver of any right under this Agreement shall be binding unless executed in writing by the Party
to be bound thereby.

 

Section 11.08. Counterparts. This Agreement
may be executed in as many counterparts as may be necessary or by facsimile and each such counterpart agreement or facsimile so executed
shall be deemed to be an original and such counterparts and facsimile copies together shall constitute one and the same instrument and
shall be valid and enforceable.

 

Section 11.09. Arbitration.

(a)
       All disputes, controversies or claims arising out of, relating to, or in respect of this Agreement,
including any issue regarding its existence, validity, enforceability, interpretation, breach or termination (each a "Dispute")
shall be resolved in accordance with the terms of this Agreement.

(b)
       Any Dispute that LZGI or FatBrain are unable to amicably resolve or settle between themselves
through negotiations between senior executives of the relevant Party within fifteen (15) Business Days (or such longer period as the applicable
parties may agree to in writing) of a party being provided notice of such Dispute or difference in accordance with Section 11.2 of this
Agreement (the "Consultation Period") shall be referred to and finally determined by final and binding arbitration. The
arbitration shall be confidential and shall be settled in accordance with the terms of this Agreement (the "Arbitrator").

(c)
       The arbitration shall be governed by the Rules of the American Arbitration Association to the
extent that such rules do not conflict with the terms of this Section 11.4.

(d)
 The arbitration shall be seated in the City of Philadelphia, Pennsylvania and the arbitration agreement set forth in this Agreement
shall be governed by and construed in accordance with the laws of New York.

(e)
 Within thirty (30) days of the expiry of the Consultation Period, the disputing parties agree to jointly select the Arbitrator
who shall be trained in the laws of New York. The Arbitrator shall be impartial and independent of the Parties and shall be experienced
and knowledgeable about the subject matter of the Dispute (generally and not as to the express facts concerning the Dispute). If the disputing
Parties are unable to agree upon the Arbitrator, any such disputing Parties may apply to elect an Arbitrator in accordance with the provisions
of the Rules of the American Arbitration Association.

(f)
 It is specifically acknowledged and agreed that any Dispute that cannot be resolved between the disputing Parties prior the
expiry of the Consultation Period shall be submitted to arbitration irrespective of the magnitude thereof or the amount in question.

(g)
 The Arbitrator shall have jurisdiction: (i) to apply all applicable statutes, regulations, common law and equity; and (ii) to
make an award or awards in respect of interest and the payment of the costs of the arbitration (including arbitrators' fees and the legal
costs of the Parties). The Arbitrator also may, where requested by a Party, determine the nature and extent of production of documents
and oral depositions.

(h)
 The award of the Arbitrator shall be reduced to writing and be final and binding on the disputing Parties. Any monetary award
shall be made and payable, free of any taxes or other deduction, and shall bear interest from the date of any breach or other violation
of this Agreement to the date on which the award is paid, at a rate determined by the Arbitrator.

(i)
 Judgment upon the award(s) rendered by the Arbitrator may be entered and execution had in any court of competent jurisdiction,
or application may be made to such court for a judicial acceptance of the award and order of enforcement.

(j)
 The Party against whom judgment is rendered shall bear all legal fees of the disputing Parties and all other costs incurred
in connection with an arbitration proceeding, including the expenses of the Arbitrator.

(k)
 By agreeing to arbitration, the Parties do not intend to deprive any court of its jurisdiction to issue a pre-arbitral injunction,
pre-arbitral attachment or other order in aid of the arbitration proceedings and the enforcement of any award. Without prejudice to such
provisional remedies in aid of arbitration as may be available under the jurisdiction of a legal court, the Arbitrator shall have full
authority to grant provisional remedies, statutory remedies and to award damages for the failure of the disputing parties to respect the
Arbitrator's orders to that effect.

(l)
 Nothing in this Agreement shall restrict or prohibit a Party from commencing arbitration at any time, including prior the expiry
of a Consultation Period, in order to protect its rights under this Agreement or in relation to a dispute or disagreement.

(m)
       Except where reasonably prevented by the nature of the Dispute, LZGI, the Shareholders and FatBrain
shall continue to perform their respective duties, obligations and responsibilities under this Agreement and the Transaction Documents
while the Dispute is being resolved in accordance with this Section 10.4, unless and until such obligations are lawfully terminated or
expire in accordance with the provisions thereof.

(n)
       All dispute resolution and arbitration proceedings (including all related information, communications,
documents, materials, and evidence) shall be strictly confidential, and each party shall have a fiduciary obligation to the other parties
to protect, preserve and maintain the integrity of such confidentiality.

Section 11.10. Independent
Legal Advice. Each of the Parties acknowledges that they: (a) have been advised by the other Parties to seek independent
legal advice; (b) have sought such independent legal advice or deliberately decided not to do so; (c) understand their rights and obligations
under this Agreement; and (d) are executing this Agreement voluntarily.

Section 11.11. Press
Releases and Public Announcements. No Party shall issue or otherwise disseminate any press release or other public notice
related to this Agreement, the Transaction Documents or any of the transactions contemplated hereby without the prior written consent
of the other Parties. Notwithstanding the foregoing, LZGI shall be permitted to issue any public notice related to this Agreement or any
of the transactions contemplated hereby, without the consent of any other Party if such release is required by a Governmental Authority,
a recognized securities exchange on which its securities are or may be listed or any Applicable Law.

 

[SIGNATURE PAGE TO FOLLOW.]

 

 

IN WITNESS WHEREOF the Parties hereto have set
their hand and seal as of the day and year first above written.

 

 

	
    LZG INTERNATIONAL, INC.

    a Florida corporation
	
    FATBRAIN LLC

    A Delaware limited liability company

	
     

     

    By: /s/ Greg L. Popp

    Name: Greg L. Popp

    Title: President

     
	
     

     

     

    By: /s/ Peter B. Ritz

    Name: Peter B. Ritz

    Title: Managing Director

     

     

 

 

 

    	 

    	 

    

 

EXHIBIT "A"

FATBRAIN INTELLECTUAL PROPERTY

 

 

1. Dynamic Risk IQ Applications and Solution suite (Cagney) –
representative market covers financial crimes systems compliance such as offered by Oracle (Mantis), Nice Actimize, Feedzai, Refinitiv,
et al.

 

2. Trading Intelligence Applications and Solutions suite, for market day
trader and family office trading operations, comprising Fiona (Trading Forecast); Flora (Trading Dynamics); Frankie (Trading
Scenarios); and Frida (Risk Concentration).

 

3. A non-exclusive, pre-paid, perpetual license for the FatBrain Outcomes
Engine PaaS to make the Assets described in Items 1 and 2 above operational.

 

 

    	 

    	 

    

 

Schedule 4.03

 

Convertible Notes

 

 

Convertible Promissory Note, dated April 20, 2010, issued to Greg Popp,
in the original principal amount of $23,500, with outstanding unpaid principal and interest of $45,501.

 

Convertible Promissory Note, dated November 30, 2019, issued to First Equity
Holdings, Inc., in the original principal amount of $119,200, with outstanding unpaid principal and interest of $147,923.

 

Convertible Promissory Note, dated June 30, 2019, issued to Capital Communications
Inc., in the original principal amount of $70,000, with outstanding unpaid principal and interest of $107,245.Exhibit 10.28

 

Loan
Agreement

  

 

THIS LOAN AGREEMENT
(the “Agreement”), is entered into as of October 14, 2021, among MED-ENG HOLDINGS ULC, an unlimited liability
company organized under the laws of British Columbia (“Med-Eng”) with an address at 2400 St. Laurent Boulevard, Ottawa,
ON, K1G 6C4, Canada, PACIFIC SAFETY PRODUCTS INC., a corporation organized under the laws of Canada (“Pacific Safety”;
and along with Med-Eng, each a “Borrower” and collectively, the “Borrowers”), with an address at
124 4th Avenue, Arnprior, Ontario, K7S 0A9, Canada, and PNC BANK CANADA BRANCH (the “Bank”), with
an address at 130 King Street West, Suite 2140, Toronto, Ontario, M5X 1E4, Canada.

 

The Borrowers and the Bank,
with the intent to be legally bound, agree as follows:

 

1.       Loan.
The Bank has made or may make one or more loans (“Loan”) to the Borrowers, on a joint and several basis, subject to
the terms and conditions and in reliance upon the representations and warranties of the Borrowers set forth in this Agreement. Each Loan
shall be used for business purposes (and not for personal, family or household use) and is or will be evidenced by that certain Revolving
Line of Credit Note dated as of the date hereof made by the Borrowers in favor of the Bank and all renewals, extensions, amendments and
restatements thereof (whether one or more, collectively, the “Note”) acceptable to the Bank and the Borrowers, which
shall set forth the interest rate, repayment and other provisions of the respective Loan, the terms of which (including the defined terms
therein) are incorporated into this Agreement by reference. The Loans governed by this Agreement shall include the Loans specifically
described below, if any, and any additional lines of credit or term loans that the Bank has made or may, in its sole discretion, make
to the Borrowers in the future.

 

1.1. Line of Credit.
One of the Loans governed by this Agreement is a committed revolving line of credit under which the Borrowers may request and the
Bank, subject to the terms and conditions of this Agreement, will make advances to the Borrowers, on a joint and several basis, from time
to time until the Expiration Date, in an aggregate amount outstanding at any time not to exceed C$10,000,000 (the “Line of Credit”).
The “Expiration Date” shall have the meaning set forth in the Note. Each Borrower acknowledges and agrees that in no
event will the Bank be under any obligation to extend or renew the Line of Credit beyond the Expiration Date. In no event shall the aggregate
unpaid principal amount of advances under the Line of Credit exceed the face amount of the Line of Credit. Advances under the Line of
Credit (a) will be used for working capital or other general business purposes of the Borrowers and (b) at the Borrowers’ option,
will be denominated in either U.S. Dollars or Canadian Dollars.

 

1.2. The Borrowers may
request that the Bank, in lieu of cash advances, issue letters of credit (each individually a “Letter of Credit” and
collectively, the “Letters of Credit”) under the Line of Credit (including all banker’s acceptances issued up
to 180 days under the terms of any trade Letter of Credit) with an aggregate stated amount outstanding at any time not to exceed C$3,000,000;
provided, however, that (a) after giving effect to the stated amount of such Letter of Credit, the sum of the aggregate
outstanding advances under the Line of Credit and the aggregate stated amount of all Letters of Credit issued and outstanding shall not
exceed the amount of the Line of Credit and (b) at the Borrowers’ option, Letters of Credit will be denominated either U.S. Dollars
or Canadian Dollars. The availability of advances under the Line of Credit shall be reduced by the stated amount of each Letter of Credit
issued and outstanding (whether or not drawn). For purposes of this Agreement, the “stated amount” of any Letter of Credit
shall include any automatic increases in the amount available to be drawn under the terms of such Letter of Credit, whether or not any
such increase has become effective, and any deemed increase in the amount available to be drawn under the terms of a trade Letter of Credit
as a result of any tolerance set forth in such trade Letter of Credit.

 

     

     

    

 

Unless otherwise consented to by the Bank in
writing, each Letter of Credit shall have an expiry date which is not later than twelve (12) months following the Expiration Date
(the “Final LC Expiration Date”). Each payment by the Bank under a Letter of Credit shall constitute an advance
of principal under such Line of Credit and shall be evidenced by the Note. The Letters of Credit shall be governed by the terms of
this Agreement and by a reimbursement agreement, in form and content satisfactory to the Bank, executed by the Borrowers in favor of
the Bank (the “Reimbursement Agreement”). Each request for the issuance of a Letter of Credit must be accompanied
by the Borrowers’ execution of an application on the Bank’s standard forms (each, an “Application”),
together with all supporting documentation. Each Letter of Credit will be issued in the Bank’s sole discretion and in a form
acceptable to the Bank. This Agreement is not a pre-advice for the issuance of a letter of credit and is not irrevocable.

 

The Borrowers shall pay the
Bank’s standard issuance fee on the stated amount of each Letter of Credit upon issuance, together with such other customary fees
and expenses therefor as shall be required by the Bank. In addition, the Borrowers shall pay to the Bank a fee (the “Letter of
Credit Commission”), calculated daily (on the basis of a year of 360 days), on the amount available to be drawn at such time
under all Letters of Credit issued and outstanding under the Line of Credit (including any amounts drawn thereunder and not reimbursed,
regardless of the existence or satisfaction of any conditions or limitations on drawing) each day at a rate equal to the Applicable Margin
for LIBOR Rate Loans. The Letter of Credit Commission shall be payable quarterly in arrears beginning on October 1, 2021, and continuing
on the first day of each fiscal quarter thereafter and on the Final LC Expiration Date. In no event shall the Letter of Credit Commission
for any Letter of Credit be less than the minimum commission in effect from time to time.

 

2.       Security.
Upon the occurrence of an Event of Default (as defined in the Guarantor Credit Agreement), the security for repayment of the Loan shall
include but not be limited to the collateral, guaranties and other documents hereafter executed and delivered to the Bank (the “Security
Documents”), which shall secure repayment of the Loan and all other loans, advances, debts, liabilities, obligations, covenants
and duties owing by the Borrowers to the Bank described therein (hereinafter referred to collectively as the “Obligations”).

 

This Agreement, the Note,
the Security Documents, that certain Guaranty Agreement dated as of the date hereof by and among Safariland, LLC, a Delaware limited liability
company (the “Guarantor”) and the Bank (the “Parent Guaranty”) and all other agreements and documents
executed and/or delivered pursuant or subject hereto, as each may be amended, modified, extended or renewed from time to time, are collectively
referred to as the “Loan Documents”. Capitalized terms not defined herein shall have the meanings ascribed to them
in the Loan Documents.

 

3.       Representations
and Warranties. Each Borrower hereby makes the following representations and warranties, which shall be continuing in nature and
remain in full force and effect until the Obligations are paid in full, and which shall be true and correct except as otherwise set forth
on the Addendum attached hereto and incorporated herein by reference (the “Addendum”):

 

3.1.       Existence,
Power and Authority. Each Borrower is duly organized, validly existing and in good standing under the laws of the jurisdiction
of its incorporation or organization and has the power and authority to own and operate its assets and to conduct its business as now
or proposed to be carried on, and is duly qualified, licensed and in good standing to do business in all jurisdictions where its ownership
of property or the nature of its business requires such qualification or licensing, except where the failure to be so qualified or licensed
could not reasonably be expected to result in a material adverse change in its business, assets, operations, condition (financial or otherwise)
or results of operation.

 

3.2.       No
Material Adverse Change. Since December 31, 2020, neither Borrower has suffered any damage, destruction or loss, and no event
or condition has occurred or exists, which has resulted or could reasonably be expected to result in a material adverse change in its
business, assets, operations, condition (financial or otherwise) or results of operation.

 

3.3.       Binding
Obligations. Each Borrower has full power and authority to enter into the transactions provided for in this Agreement and
has been duly authorized to do so by appropriate action of its Board of Directors if such Borrower is a corporation, its members
and/or managers, as applicable, if such Borrower is a limited liability company, all its general partners if such Borrower is a
partnership or otherwise as may be required by law, charter, other organizational documents or agreements; and the Loan Documents,
when executed and delivered by such Borrower, will constitute the legal, valid and binding obligations of such Borrower enforceable
in accordance with their terms, subject to applicable bankruptcy, insolvency, moratorium, reorganization or similar laws affecting
the rights and remedies of creditors generally, general equitable principles and the availability of equitable remedies, in each
case whether considered in a proceeding in equity or at law.

 

    - 2 - 

     

    

 

3.4.       No
Defaults or Violations. There does not exist any Default or Event of Default, as hereinafter defined, under this Agreement, and
the consummation of this Agreement and the transactions set forth herein will not result in any Default or Event of Default. There does
not exist any default or violation by any Borrower of or under any of the terms, conditions or obligations of: (i) its articles or certificate
of incorporation, regulations and bylaws if such Borrower is a corporation, its articles or certificate of organization and operating
agreement if such Borrower is a limited liability company, or its other organizational documents as applicable; (ii) any indenture, mortgage,
deed of trust, franchise, permit, contract, agreement, or other instrument to which it is a party or by which it is bound; or (iii) any
law, ordinance, regulation, ruling, order, injunction, decree, condition or other requirement applicable to or imposed upon it by any
law, the action of any court or any governmental authority or agency, which, in the case of clauses (ii) and (iii) of this Section 3.4,
could reasonably be expected to result in a material adverse change in its business, assets, operations, condition (financial or otherwise)
or results of operation.

 

3.5.       Title
to Assets. Each Borrower has good and marketable title to the assets reflected on the its most recent financial statements, free
and clear of all liens and encumbrances, except for (i) liens in favor of the Bank, if any; (ii) current taxes and assessments not yet
due and payable; (iii) assets disposed of by such Borrower in the ordinary course of business since the date of the most recent financial
statements; and (iv) those liens or encumbrances, if any, specified on the Addendum.

 

3.6.       Litigation.
There are no actions, suits, proceedings or governmental investigations pending or, to the knowledge of any Borrower, threatened against
any Borrower, which could reasonably be expected to result in a material adverse change in its business, assets, operations, condition
(financial or otherwise) or results of operations and there is no basis known to any Borrower for any action, suit, proceeding or investigation
which could reasonably be expected to result in such a material adverse change. All pending and threatened litigation against any Borrower
is listed on the Addendum attached hereto.

 

3.7.       Tax
Returns. The Borrowers have filed all returns and reports that are required to be filed by it in connection with any federal,
provincial or material local tax, duty or charge levied, assessed or imposed upon it or its property or withheld by it, including income,
unemployment, social security and similar taxes, and all of such taxes have been either paid or adequate reserves or other provision has
been made therefor.

 

3.8.       Employee
Benefit Plans. Each employee benefit plan as to which any Borrower may have any liability complies in all material respects with
all applicable provisions of the Employee Retirement Income Security Act of 1974 (as amended from time to time, “ERISA”),
or such similar Canadian federal or provincial pension or welfare legislation to which any Borrower is subject to compliance, as applicable,
including minimum funding requirements, and (i) no Prohibited Transaction (as defined under ERISA) has occurred with respect to any such
plan; (ii) no Reportable Event (as defined under Section 4043 of ERISA) has occurred with respect to any such plan which would cause the
Pension Benefit Guaranty Corporation to institute proceedings under Section 4042 of ERISA; (iii) no Borrower has withdrawn from any such
plan or initiated steps to do so; and (iv) no steps have been taken to terminate any such plan, nor, to the knowledge of any Borrower,
have such similar events or actions occurred under similar Canadian federal or provincial pension or welfare legislation to which any
Borrower is subject to compliance.

 

    - 3 - 

     

    

 

3.9.       Environmental
Matters. The Borrowers are in compliance, in all material respects, with all Environmental Laws (as hereinafter defined),
including, without limitation, all Environmental Laws in jurisdictions in which the Borrowers own or operate, or have owned or
operated, a facility or site, stores collateral, arranges or has arranged for disposal or treatment of hazardous substances, solid
waste or other waste, accepts or has accepted for transport any hazardous substances, solid waste or other wastes or holds or has
held any interest in real property or otherwise. Except as otherwise disclosed on the Addendum, no litigation or proceeding arising
under, relating to or in connection with any Environmental Law is pending or, to the best of any Borrower’s knowledge,
threatened against any Borrower, any real property in which any Borrower holds or has held an interest or any past or present
operation of any Borrower. No release or disposal of hazardous waste, solid waste or other wastes is occurring, or to the best of
any Borrower’s knowledge has occurred or is threatened, on, under or to any real property in which any Borrower holds or has
held any interest or performs or has performed any of its operations, in violation of any Environmental Law, which could reasonably
be expected to result in a material adverse change in its business, assets, operations, condition (financial or otherwise) or
results of operations. As used in this Section, “litigation or proceeding” means any demand, claim notice, suit,
suit in equity, action, administrative action, investigation or inquiry whether brought by a governmental authority or other person,
and “Environmental Laws” means all provisions of laws, statutes, ordinances, rules, regulations, permits,
licenses, judgments, writs, injunctions, decrees, orders, awards and standards promulgated by any governmental authority concerning
protection of human health from exposure to hazardous substances, safety and protection of, or regulation of the discharge of
hazardous substances into, the environment.

 

3.10.       Intellectual
Property. Each Borrower owns, is licensed or has the right to use, all patents, patent rights, trademarks, trade names, service
marks, copyrights, intellectual property, technology, know-how and processes necessary for the conduct of its business as currently conducted
that are material to the condition (financial or otherwise), business or operations of such Borrower.

 

3.11.       Regulatory
Matters. No part of the proceeds of any Loan will be used for “purchasing” or “carrying” any “margin
stock” within the respective meanings of each of the quoted terms under Regulation U of the Board of Governors of the Federal Reserve
System as now and from time to time in effect or for any purpose which violates the provisions of the Regulations of such Board of Governors.

 

3.12.       Solvency.
As of the date hereof and after giving effect to the transactions contemplated by the Loan Documents, (i) the aggregate value of the Borrowers’
assets will exceed their liabilities (including contingent, subordinated, unmatured and unliquidated liabilities); (ii) the Borrowers
will have sufficient cash flow to enable it to pay its debts as they become due; and (iii) the Borrowers will not have unreasonably small
capital for the business in which they are engaged.

 

3.13.       Disclosure.
None of the Loan Documents contains any untrue statement of material fact or omits or will omit to state a material fact necessary in
order to make the statements contained in this Agreement or the Loan Documents, taken as a whole, not misleading. There is no fact known
to any Borrower which materially adversely affects or could reasonably be expected to materially adversely affect the business, assets,
operations, condition (financial or otherwise) or results of operation of any Borrower and which has not otherwise been reasonably set
forth in this Agreement or in the Loan Documents, taken as a whole.

 

3.14.       Beneficial
Owners. If any Borrower is or was required to execute and deliver to the Bank a Certification of Beneficial Owner(s) (individually
and collectively, as updated from time to time, the “Certification of Beneficial Owners”), the information in the Certification
of Beneficial Owners, as updated from time to time in accordance with this Agreement, is true, complete and correct as of the date thereof
and as of the date any such update is delivered to the Bank. Each Borrower acknowledges and agrees that the Certification of Beneficial
Owners is a Loan Document.

 

4.       Affirmative
Covenants.  Each Borrower agrees that from the date of execution of this Agreement until all Obligations have been paid
in full and any commitments of the Bank to the Borrowers have been terminated, each Borrower will:

 

4.1.       Books
and Records. Maintain books and records in accordance with GAAP and give representatives of the Bank access thereto at all
reasonable times during normal business hours, including permission to examine, copy and make abstracts from any of such books and
records and such other information as the Bank may from time to time reasonably request, and each Borrower will make available to
the Bank for examination copies of any reports, statements and returns which such Borrower may make to or file with any federal,
state or local governmental department, bureau or agency.

 

    - 4 - 

     

    

 

4.2.       Financial
Reporting. Deliver or cause to be delivered to the Bank (a) any information about the Borrowers’ financial condition, properties
and operations as and when reasonably requested by the Bank, from time to time and (b) copies of any financial statements required to
be delivered to the Administrative Agent (as define below) pursuant to that certain Credit Agreement, dated as of July 23, 2021 (as amended,
restated, amended and restated, supplemented or otherwise modified from time to time, the “Guarantor Credit Agreement”),
by and among the Guarantor, as borrower, the guarantors from time to time party thereto, the lenders from time to time party thereto and
PNC Bank, National Association, as administrative agent (the “Administrative Agent”).

 

4.3.       Payment
of Taxes and Other Charges. Pay and discharge when due all indebtedness and all taxes, assessments, charges, levies and other
liabilities imposed upon any Borrower, its income, profits, property or business, except those which currently are being contested in
good faith by appropriate proceedings and for which such Borrower shall have set aside adequate reserves or made other adequate provision
with respect thereto as required by GAAP.

 

4.4.       Maintenance
of Existence, Operation and Assets. Do all things necessary to (i) maintain, renew and keep in full force and effect its organizational
existence and all rights, permits and franchises necessary to enable it to continue its business as currently conducted; (ii) continue
in operation in substantially the same manner as at present; (iii) keep its properties in good operating condition and repair; and (iv)
make all necessary and proper repairs, renewals, replacements, additions and improvements thereto.

 

4.5.       Insurance.
Maintain, with financially sound and reputable insurers, insurance with respect to its property and business against such casualties and
contingencies, of such types and in such amounts, as is customary for established companies engaged in the same or similar business and
similarly situated. In the event of a conflict between the provisions of this Section and the terms of any Security Documents relating
to insurance, the provisions in the Security Documents will control.

 

4.6.       Compliance
with Laws. Comply with all laws applicable to the Borrowers and to the operation of its business (including without limitation
any statute, ordinance, rule or regulation relating to employment practices, pension benefits or environmental, occupational and health
standards and controls).

 

4.7.       Reserved.

 

4.8.       Additional
Reports. Provide prompt written notice to the Bank of the occurrence of any of the following (and, if applicable, together with
a description of the action which the Borrowers propose to take with respect thereto): (i) any Event of Default or any event, act or condition
which, with the passage of time or the giving of notice, or both, would constitute an Event of Default (a “Default”);
(ii) any material litigation filed by or against any Borrower; (iii) any Reportable Event or Prohibited Transaction with respect to any
Employee Benefit Plan(s) (as defined in ERISA), or (iv) any event which could reasonably be expected to result in a material adverse change
in the business, assets, operations, condition (financial or otherwise) or results of operation of the Borrowers.

 

4.9.       Certification
of Beneficial Owners and Other Additional Information. Provide: (i) such information and documentation as may reasonably be
requested by the Bank from time to time for purposes of compliance by the Bank with applicable laws (including without limitation
the USA PATRIOT Act and other “know your customer” and anti-money laundering rules and regulations), and any policy or
procedure implemented by the Bank to comply therewith; and (ii) if any Borrower is or was required to deliver a Certification of
Beneficial Owners to the Bank, (a) confirmation of the accuracy of the information set forth in the most recent Certification of
Beneficial Owners provided to the Bank, as and when requested by the Bank; and (b) a new Certification of Beneficial Owners in form
and substance acceptable to the Bank when the individual(s) identified as a controlling party and/or a direct or indirect individual
owner on the most recent Certification of Beneficial Owners provided to the Bank have changed.

 

    - 5 - 

     

    

 

5.       Negative
Covenants. Each Borrower covenants and agrees that from the date of this Agreement until all Obligations have been paid in full
and any commitments of the Bank to the Borrowers have been terminated, except as set forth in the Addendum, each Borrower will not, without
the Bank’s prior written consent:

 

5.1.       Indebtedness.
Create, incur, assume or suffer to exist any indebtedness for borrowed money other than:

 

(i)       the
Loan and any subsequent indebtedness to the Bank;

 

(ii)       open
account trade debt incurred in the ordinary course of business;

 

(iii)       indebtedness
in respect of purchase money financings of personal property not to exceed, in the aggregate, C$1,000,000; and

 

(iv)       intercompany
indebtedness among the Borrowers, the Guarantor and any parent or subsidiary of the Guarantor (collectively, the “Safariland
Group”).

 

5.2.       Liens
and Encumbrances. Except as provided in Section 3.5, create, assume, incur or permit to exist any mortgage, pledge,
encumbrance, security interest, lien or charge of any kind upon any of its property, now owned or hereafter acquired, or acquire or agree
to acquire any kind of property subject to any conditional sales or other title retention agreement, except liens on the assets purchased
with purchase money indebtedness permitted pursuant to Section 5.1 above and Permitted Liens.

 

5.3.       Guarantees.
Guarantee, endorse or become contingently liable for the obligations of any person, firm, corporation or other entity, except in connection
with the endorsement and deposit of checks for collection in the ordinary course of business.

 

5.4.       Loans
or Advances. Purchase or hold beneficially any stock, other securities or evidence of indebtedness of, or make or have outstanding,
any loans or advances to, or otherwise extend credit to, or make any investment or acquire any interest whatsoever in, any other person,
firm, corporation or other entity, except intercompany investments, loans or advances among the Safariland Group or investments that are
acceptable to the Bank in its sole discretion.

 

5.5.       Merger
or Transfer of Assets. Liquidate or dissolve, or merge or consolidate with or into any person, firm, corporation or other entity,
or sell, lease, transfer or otherwise dispose of all or a substantial part of its property, assets, operations or business, whether now
owned or hereafter acquired.

 

5.6.       Change
in Business, Management or Ownership. Make or permit, nor shall any Guarantor or grantor under the Security Documents make or
permit, any change in (i) its form of organization, including a division into two or more entities; (ii) the nature of its business as
carried on as of the date hereof or any line of business reasonably related thereto; (iii) the equity ownership of the Guarantor (other
than any such change pursuant to which Holdings (as defined in the Guarantor Credit Agreement) remains the direct or indirect parent of
the Guarantor); or (iv) the equity ownership of the Borrowers (other than any such change pursuant to which the Guarantor remains the
direct or indirect parent of each Borrower).

 

5.7.       Acquisitions.
Except as permitted by the Guarantor Credit Agreement, make acquisitions of all or substantially all of the property or assets of
any person, firm, corporation or other entity.

 

    - 6 - 

     

    

 

6.       Events
of Default.  The occurrence of any of the following will be deemed to be an “Event of Default”:

 

6.1.       Covenant
Default. Any Borrower shall default in the performance of any of the covenants or agreements contained in this Agreement.

 

6.2.       Breach
of Warranty. Any Financial Statement, representation, warranty or certificate made or furnished by any Borrower to the Bank in
connection with this Agreement shall be false, incorrect or incomplete when made.

 

6.3.       Other
Default. The occurrence of (i) an Event of Default as defined in the Note or any of the Loan Documents, (ii) a default or event
of default under or as defined in any other agreement, instrument or document between any Borrower and PNC Bank, National Association
or any of its subsidiaries or affiliates or (iii) an Event of Default under or as defined in the Guarantor Credit Agreement or any Loan
Document (as defined in the Guarantor Credit Agreement).

 

Upon the occurrence of an Event
of Default, the Bank will have all rights and remedies specified in the Note and the Loan Documents and all rights and remedies (which
are cumulative and not exclusive) available under applicable law or in equity.

 

7.       Conditions.
The Bank’s obligation to make any advance under any Loan, or to issue any letter of credit, is subject to the conditions that as
of the date of the advance:

 

7.1.       No
Event of Default. No Event of Default or Default shall have occurred and be continuing.

 

7.2.       Authorization
Documents. The Bank shall have received certified copies of resolutions of the board of directors, the general partners or the
members or managers of any partnership, corporation or limited liability company that executes this Agreement, the Note or any of the
other Loan Documents; or other proof of authorization satisfactory to the Bank.

 

7.3.       Receipt
of Loan Documents. The Bank shall have received the Loan Documents and such other instruments and documents which the Bank may
reasonably request in connection with the transactions provided for in this Agreement, which may include an opinion of counsel in form
and substance satisfactory to the Bank for any party executing any of the Loan Documents.

 

7.4.       Fees.
The Bank shall have received all fees owing in respect of the Loan.

 

8.       Fees;
Expenses. Each Borrower, jointly and severally, agrees to reimburse the Bank, upon the execution of this Agreement, and otherwise
on demand, all fees due and payable to the Bank hereunder and under the other Loan Documents and all costs and expenses incurred by the
Bank in connection with the preparation, negotiation and delivery of this Agreement and the other Loan Documents, and any modifications
or amendments thereto or renewals thereof, and the collection of all of the Obligations, including but not limited to enforcement actions,
relating to the Loan, whether through judicial proceedings or otherwise, or in defending or prosecuting any actions or proceedings arising
out of or relating to this Agreement, including (i) reasonable fees and expenses of counsel; (ii) all costs related to conducting UCC,
PPSA, title and other public record searches; (iii) fees for filing and recording documents in the public records to perfect the Bank’s
liens and security interests; (iv) expenses for auditors, appraisers and environmental consultants; and (v) taxes. Each Borrower hereby
authorizes and directs the Bank to charge such Borrower’s deposit account(s) with the Bank for any and all of the foregoing fees,
costs and expenses.

 

    - 7 - 

     

    

 

9.       Increased
Costs.

 

(a)       If
any Change in Law shall:

 

(i)       impose,
modify or deem applicable any reserve, special deposit or similar requirement against assets of, deposits with or for the account of,
or credit extended by, the Bank (except any such reserve requirement reflected in the Daily LIBOR Rate or CDOR, as applicable); or

 

(ii)        impose
on the Bank or the London or Toronto interbank market any other condition affecting this Agreement or LIBOR Rate Loans or CDOR Rate Loans
made by the Bank or any Letter of Credit;

 

and the result of any of the foregoing
shall be to increase the cost to the Bank of making or maintaining of any LIBOR Rate Loan or CDOR Rate Loan (or of maintaining its obligation
to make any such Loan) or to increase the cost to the Bank of issuing or maintaining any Letter of Credit or to reduce the amount of any
sum received or receivable by the Bank hereunder (whether of principal, interest or otherwise) in respect of any LIBOR Rate Loan, CDOR
Rate Loan or Letter of Credit in an amount deemed by the Bank to be material, then, within 30 days after the Borrowers’ receipt
of the certificate contemplated by Section 9(c), the Borrowers will pay to the Bank such additional amount or amounts as will compensate
the Bank for such additional costs incurred or reduction suffered (including any Taxes).

 

(b)        If
the Bank determines that any Change in Law regarding liquidity or capital requirements has or would have the effect of reducing the rate
of return on the Bank’s capital or on the capital of the Bank’s holding company, if any, as a consequence of this Agreement
or the Loans made by the Bank, or the Letters of Credit issued by the Bank, to a level below that which the Bank’s or the Bank’s
holding company could have achieved but for such Change in Law (including any Change in Law due to Taxes) (taking into consideration the
Bank’s policies and the policies of the Bank’s holding company with respect to capital adequacy), then within 30 days of receipt
by the Borrowers of the certificate contemplated by Section 9(c), the Borrowers will pay to the Bank such additional amount or amounts
as will compensate the Bank or the Bank’s holding company for any such reduction suffered.

 

(c)        A
certificate of the Bank setting forth the amount or amounts necessary to compensate the Bank or its holding company, as applicable, as
specified in Sections 9(a) and 9(b) and setting forth in reasonable detail the manner in which such amount or amounts was determined and
certifying that the Bank is generally charging such amounts to similarly situated borrowers shall be delivered to the Borrowers and shall
be conclusive absent manifest error.

 

(d)        Failure
or delay on the part of the Bank to demand compensation pursuant to this Section 9 shall not constitute a waiver of the Bank’s right
to demand such compensation; provided that no Borrower shall be required to compensate the Bank pursuant to this Section 9 for any increased
costs or reductions incurred more than 180 days prior to the date that the Bank notifies the Borrowers of the Change in Law giving rise
to such increased costs or reductions and of the Bank’s intention to claim compensation therefor; provided, further, that if the
Change in Law giving rise to such increased costs or reductions is retroactive, then the 180-day period referred to above shall be extended
to include the period of retroactive effect thereof.

 

10.       Miscellaneous.

 

10.1.       Notices.
All notices, demands, requests, consents, approvals and other communications required or permitted hereunder (“Notices”)
must be in writing (except as may be agreed otherwise above with respect to borrowing requests or as otherwise provided in this Agreement)
and will be effective upon receipt. Notices may be given in any manner to which the parties may agree. Without limiting the foregoing,
first-class mail, postage prepaid, facsimile transmission and commercial courier service are hereby agreed to as acceptable methods for
giving Notices. In addition, the parties agree that Notices may be sent electronically to any electronic address provided by a party from
time to time. Notices may be sent to a party’s address as set forth below or to such other address as any party may give to the
other for such purpose in accordance with this section.

 

    - 8 - 

     

    

 

If to the Borrowers:

 

c/o Safariland, LLC

13386 International Parkway

Jacksonville, Florida 32218

Attention:             Blaine
Browers

Email: Blaine.Browers@safariland.com

Telephone/Telecopy: (904)
741-1742

Chad Appleby

Email: Chad.Appleby@safariland.com

Telephone/Telecopy: (904)
807-4975

 

With a copy to:

 

Kane Kessler, P.C.

600 Third Avenue, 35th Floor

New York, NY 10016-1901

Attention:             Robert
L. Lawrence

Email: rlawrence@kanekessler.com

Telephone: (212) 519-5103

Telecopy: (212) 245-3009

 

If to the Bank:

 

Brian Keeney

PNC Financial Services Group

5011 Gate Parkway, Bldg 200, Suite 400

Jacksonville FL 32256

		Attention:	Brian Keeney

			Telephone: (904) 407-2173

		 	Email:    brian.keeney@pnc.com

 

With a copy to:

 

PNC Bank, National Association

7121 Fairway Drive, Ste 300 (Mailstop A2-XWFD-03-B)

Palm Beach Gardens, FL  33418

		Attention:	Cindy Noel

		Telephone:	(561) 803-9834

		Facsimile:	(855) 843-2340

		Email:	cindy.noel@pnc.com

 

10.2.       Preservation
of Rights. No delay or omission on the Bank’s part to exercise any right or power arising hereunder will impair any such
right or power or be considered a waiver of any such right or power, nor will the Bank’s action or inaction impair any such right
or power. The Bank’s rights and remedies hereunder are cumulative and not exclusive of any other rights or remedies which the Bank
may have under other agreements, at law or in equity.

 

10.3.       Illegality.
If any provision contained in this Agreement should be invalid, illegal or unenforceable in any respect, it shall not affect or impair
the validity, legality and enforceability of the remaining provisions of this Agreement.

 

    - 9 - 

     

    

 

10.4.       Changes
in Writing. No modification, amendment or waiver of, or consent to any departure by any Borrower from, any provision of this
Agreement will be effective unless made in a writing signed by the party to be charged, and then such waiver or consent shall be effective
only in the specific instance and for the purpose for which given. No notice to or demand on any Borrower will entitle such Borrower
to any other or further notice or demand in the same, similar or other circumstance.

 

10.5.       Entire
Agreement. This Agreement (including the documents and instruments referred to herein) constitutes the entire agreement and supersedes
all other prior agreements and understandings, both written and oral, between the parties with respect to the subject matter hereof.

 

10.6.       Counterparts.
This Agreement and any other Loan Document may be signed in any number of counterpart copies and by the parties hereto on separate counterparts,
but all such copies shall constitute one and the same instrument. Delivery of an executed counterpart of a signature page to this Agreement
or any other Loan Document by facsimile transmission or electronic mail shall be effective as delivery of a manually executed counterpart.
Any party so executing this Agreement or any other Loan Document by facsimile transmission or electronic mail shall promptly deliver a
manually executed counterpart, provided that any failure to do so shall not affect the validity of the counterpart executed by facsimile
transmission or electronic mail.

 

10.7.       Successors
and Assigns. This Agreement will be binding upon and inure to the benefit of each Borrower and the Bank and their respective heirs,
executors, administrators, successors and assigns; provided, however, that no Borrower may assign this Agreement in whole
or in part without the Bank’s prior written consent and the Bank may assign this Agreement in whole or in part in accordance with
the terms of Section 10.10.

 

10.8.       Interpretation.
In this Agreement, unless the Bank and the Borrowers otherwise agree in writing, the singular includes the plural and the plural the singular;
words importing any gender include the other genders; references to statutes are to be construed as including all statutory provisions
consolidating, amending or replacing the statute referred to; the word “or” shall be deemed to include “and/or”,
the words “including”, “includes” and “include” shall be deemed to be followed by the words “without
limitation”; references to articles, sections (or subdivisions of sections) or exhibits are to those of this Agreement; and references
to agreements and other contractual instruments shall be deemed to include all subsequent amendments and other modifications to such instruments,
but only to the extent such amendments and other modifications are not prohibited by the terms of this Agreement. Section headings in
this Agreement are included for convenience of reference only and shall not constitute a part of this Agreement for any other purpose.
Unless otherwise specified in this Agreement, all accounting terms shall be interpreted and all accounting determinations shall be made
in accordance with GAAP. If this Agreement is executed by more than one Borrower, the obligations of such persons or entities will be
joint and several.

 

10.9.       No
Consequential Damages, Etc.. The Bank will not be responsible for any damages, consequential, incidental, special, punitive or
otherwise, that may be incurred or alleged by any person or entity, including any Borrower and the Guarantor, as a result of this Agreement,
the other Loan Documents, the transactions contemplated hereby or thereby, or the use of the proceeds of the Loan.

 

10.10.       Assignments
and Participations. Upon the occurrence of an Event of Default, without any notice to any Borrower, the Bank may sell, assign,
transfer, negotiate, grant participations in, or otherwise dispose of all or any part of the Bank’s interest in the Loan to another
bank licensed to operate in Canada. Each Borrower hereby authorizes the Bank to provide, without any notice to any Borrower, any information
concerning any Borrower, including information pertaining to any Borrower’s financial condition, business operations or general
creditworthiness, to any assignee of or participant in or any prospective assignee of or participant in all or any part of the Bank’s
interest in the Loan; provided that the recipient thereof agrees to be bound by the provisions of Section 10.13 hereof in connection with
such information.

 

    - 10 - 

     

    

 

 

10.11.       USA
PATRIOT Act Notice. To help the government fight the funding of terrorism and money laundering activities, Federal law or the
Canadian equivalent thereof requires all financial institutions to obtain, verify and record information that identifies each
Borrower that opens an account. What this means: when any Borrower opens an account, the Bank will ask for the business name,
business address, taxpayer identifying number and other information or documentation that will allow the Bank to identify such
Borrower, such as organizational documents. For some businesses and organizations, the Bank may also need to ask for identifying
information and documentation relating to certain individuals associated with the business or organization.

 

10.12.       Important
Information about Phone Calls. By providing telephone number(s) to the Bank, now or at any later time, each Borrower hereby authorizes
the Bank and its affiliates and designees to contact such Borrower regarding such Borrower’s account(s) with the Bank or its affiliates,
at such numbers using any means, including but not limited to placing calls using an automated dialing system to cell, VoIP or other wireless
phone number, or by leaving prerecorded messages or sending text messages, even if charges may be incurred for the calls or text messages.
Each Borrower hereby consents that any phone call with the Bank may be monitored or recorded by the Bank.

 

10.13.       Confidentiality.
In connection with the Obligations, this Agreement and the other Loan Documents, the Bank and the Borrowers will be providing to each
other, whether orally, in writing or in electronic format, nonpublic, confidential or proprietary information (collectively, “Confidential
Information”). Each Borrower and the Bank agrees (i) to hold the Confidential Information of the other in confidence; and (ii)
not to disclose or permit any other person or entity access to the Confidential Information of the other party, except for disclosure
or access (a) to a party’s affiliates and its or their employees, officers, directors, agents, representatives, (b) to other third
parties that provide or may provide ancillary support relating to the Obligations, this Agreement and/or the other Loan Documents, (c)
in connection with the exercise of any remedies or enforcement of rights under this Agreement or any action or proceeding relating to
the Obligations, this Agreement and/or the other Loan Documents, (d) to its external or internal auditors or regulatory authorities, or
(e) upon the order of a court or other governmental agency having jurisdiction over a party. It is understood and agreed that the obligation
to protect such Confidential Information shall be satisfied if the party receiving such Confidential Information utilizes the same control
(but no less than reasonable) as it does to avoid disclosure of its own confidential and valuable information. It is also understood and
agreed that no information shall be within the protection of this Agreement where such information: (w) is or becomes publicly available
through no fault of the party to whom such Confidential Information has been disclosed, (x) is released by the originating party to anyone
without restriction, (y) is rightly obtained from third parties who are not, to such receiving party’s knowledge, under an obligation
of confidentiality, or (z) is required to be disclosed by subpoena or similar process of applicable law or regulations.

 

For the purposes of this Agreement,
Confidential Information of a party shall include, without limitation, any financial information, scientific or technical information,
design, process, procedure or improvement and all concepts, documentation, reports, data, data formats, specifications, computer software,
source code, object code, user manuals, financial models, screen displays and formats, software, databases, inventions, knowhow, showhow
and trade secrets, whether or not patentable or copyrightable, whether owned by a party or any third party, together with all memoranda,
analyses, compilations, studies, notes, records, drawings, manuals or other documents or materials which contain or otherwise reflect
any of the foregoing information.

 

Each Borrower and the Bank
agrees to return to the other or destroy all Confidential Information of the other upon the termination of this Agreement; provided, however,
each party may retain such limited information for customary archival and audit purposes only for reference with respect to prior dealings
between the parties subject at all times to the continuing terms of this Section 10.13.

 

Each Borrower and the Bank
agrees not to use the other’s name or logo in any marketing, advertising or related materials, without the prior written consent
of the other party.

 

    - 11 -

     

    

 

10.14.       Sharing
Information with Affiliates of the Bank. Each Borrower acknowledges that from time to time other financial and banking
services may be offered or provided to such Borrower or one or more of its subsidiaries and/or affiliates (in connection with this
Agreement or otherwise) by the Bank or by one or more subsidiaries or affiliates of the Bank or of The PNC Financial Services Group,
Inc., and each Borrower hereby authorizes the Bank to share any information delivered to the Bank by any Borrower and/or its
subsidiaries and/or affiliates pursuant to this Agreement or any of the Loan Documents to any subsidiary or affiliate of the Bank
and/or The PNC Financial Services Group, Inc., subject to any provisions of confidentiality in this Agreement or any other Loan
Documents.

 

10.15.       Electronic
Signatures and Records.  Notwithstanding any other provision herein, each Borrower agrees that this Agreement, the Loan Documents,
any amendments thereto, and any other information, notice, signature card, agreement or authorization related thereto (each, a “Communication”)
may, at the Bank’s option, be in the form of an electronic record. Any Communication may, at the Bank’s option, be signed
or executed using electronic signatures. For the avoidance of doubt, the authorization under this paragraph may include, without limitation,
use or acceptance by the Bank of a manually signed paper Communication which has been converted into electronic form (such as scanned
into PDF format) for transmission, delivery and/or retention.

 

10.16.       Governing
Law and Jurisdiction. This Agreement has been delivered to and accepted by the Bank and will be deemed to be made in the State
of New York. This Agreement will be interpreted and the rights and liabilities of the Bank and
each Borrower determined in accordance with the laws of the state of New York, excluding its conflict of laws rules, including without
limitation the Electronic Transactions Act (or equivalent) in effect in the state of New York (or, to the extent controlling, the laws
of the United States Of America, including without limitation the Electronic Signatures in Global and National Commerce Act).
Each Borrower hereby irrevocably consents to the exclusive jurisdiction of the courts of the State of New York sitting in New York County,
and of the United States District Court of the Southern District of New York, and any appellate court from any thereof; provided that
nothing contained in this Agreement will prevent the Bank from bringing any action, enforcing any award or judgment or exercising any
rights against any Borrower individually, against any security or against any property of any Borrower within any other county, state
or other foreign or domestic jurisdiction. The Bank and each Borrower agree that the venues provided above are the most convenient forums
for both the Bank and each Borrower. Each Borrower waives any objection to venue and any objection based on a more convenient forum in
any action instituted under this Agreement.

 

10.17.       WAIVER
OF JURY TRIAL. EACH BORROWER AND THE BANK IRREVOCABLY WAIVES ANY AND ALL RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY ACTION, PROCEEDING
OR CLAIM OF ANY NATURE RELATING TO THIS AGREEMENT, ANY DOCUMENTS EXECUTED IN CONNECTION WITH THIS AGREEMENT OR ANY TRANSACTION CONTEMPLATED
IN ANY OF SUCH DOCUMENTS. EACH BORROWER AND THE BANK ACKNOWLEDGE THAT THE FOREGOING WAIVER IS KNOWING AND VOLUNTARY.

  

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

    - 12 -

     

    

  

Each
Borrower acknowledges that it has read and understands all the provisions of this Agreement, including the waiver of jury trial, and has
been advised by counsel as necessary or appropriate.

 

WITNESS the due execution hereof as a document
under seal, as of the date first written above.

 

	BORROWERS:	MED-ENG HOLDINGS ULC
	 	 
	 	By: 	   /s/ Chad Appleby	(SEAL)
	 	Name: Chad Appleby
	 	Title:   Vice President, Tax, Treasurer and Secretary
	 	 
	 	PACIFIC SAFETY PRODUCTS INC.
	 	 
	 	By: 	   /s/ Chad Appleby	(SEAL)
	 	Name: Chad Appleby
	 	Title:   Vice President, Tax and Treasurer

 

     

     

    

 

	BANK:	PNC BANK CANADA BRANCH
	 	 
	 	By: 	   /s/ Caroline Stade
	 	Name:   Caroline Stade
	 	Title:     Senior Vice President

 

     

     

    

 

ADDENDUM

  

ADDENDUM to that certain Loan Agreement
dated October 14, 2021 among MED-ENG HOLDINGS ULC, an unlimited liability company organized under the laws of British Columbia (“Med-Eng”),
PACIFIC SAFETY PRODUCTS INC., a corporation organized under the laws of Canada (“Pacific Safety”; and along with Med-Eng,
each a “Borrower” and collectively, the “Borrowers”) and PNC
Bank Canada Branch, as the Bank. Capitalized terms used in this Addendum and not otherwise defined shall have the meanings given
them in the Agreement. Section numbers below refer to the sections of the Agreement.

  

3.6       Title
to Assets. The Liens listed below (collectively, “Permitted Liens”):

 

(a)       Liens
for taxes, assessments, or similar charges, incurred in the Ordinary Course of Business and which are not yet due and payable;

 

(b)       pledges
or deposits made in the Ordinary Course of Business to secure payment of workmen’s compensation, or to participate in any fund in
connection with workmen’s compensation, unemployment insurance, old-age pensions or other social security programs;

 

(c)       (i)
Liens of mechanics, materialmen, warehousemen, carriers, or other like Liens, securing obligations incurred in the Ordinary Course of
Business that (A) are not yet due and payable or (B) are being Properly Contested and (ii) Liens of landlords securing obligations to
pay lease payments that (A) are not yet due and payable or in default or (B) are being Properly Contested;

 

(d)       good-faith
pledges or deposits made in the Ordinary Course of Business to secure performance of bids, tenders, contracts (other than for the repayment
of borrowed money or margining related to commodities hedges) or leases, not in excess of the aggregate amount due thereunder, or to secure
statutory obligations, or surety, appeal, indemnity, performance or other similar bonds required in the Ordinary Course of Business;

 

(e)       encumbrances
consisting of zoning restrictions, easements or other restrictions on the use of real property, none of which materially impairs the use
of such property or the value thereof, and none of which is violated in any material respect by existing or proposed structures or land
use;

 

(f)       Liens
granted pursuant to the Security Documents;

 

(g)       any
Lien existing on the date of this Agreement and set forth on Schedule 3.6 hereto and any replacements, modifications, renewals
or extensions thereof; provided that the principal amount secured thereby is not hereafter increased, no additional assets become
subject to such Lien and the direct or any contingent obligations with respect thereto is not changed;

 

(h)       purchase
money Liens upon or in any fixed or capital assets to secure the purchase price or the cost of construction or improvement of such fixed
or capital assets or to secure indebtedness incurred solely for the purpose of financing the acquisition, construction or improvement
of such fixed or capital assets (including Liens securing any Capital Lease Obligations); provided, that (i) such Lien secures
indebtedness permitted by Section 5.1(iii), (ii) such Lien attaches to such asset concurrently or within ninety (90) days after
the acquisition, improvement or completion of the construction thereof; (iii) such Lien does not extend to any other asset; and (iv) the
indebtedness secured thereby does not exceed the cost of acquiring, constructing or improving such fixed or capital assets;

 

     

     

    

 

(i)       statutory
Liens (other than Liens for taxes) arising in the Ordinary Course of Business, but only if (i) payment of the obligations secured thereby
is not yet due or is being Properly Contested, and (ii) such Liens do not materially impair the value or use of the property or materially
impair operation of the business of any Borrower;

 

(j)       Liens
incurred or deposits made with respect to any Borrower in the Ordinary Course of Business to secure the performance of tenders, bids,
leases, contracts (except those relating to borrowed money), statutory obligations and other similar obligations, or arising as a result
of progress payments under government contracts, as long as such Liens are at all times junior to the Bank’s Liens;

 

(k)       Liens
securing judgment for the payment of money (or appeal or other surety bond, relating to such judgment) against any Borrower, or any property
of a Borrower, as long as such judgment does not constitute an Event of Default;

 

(l)       normal
and customary rights of setoff upon deposits in favor of depository institutions, and Liens of a collecting bank on Payment Items in the
course of collection;

 

(m)       licenses,
sublicenses, leases or subleases of intellectual property granted by a Borrower;

 

(n)       Liens
exclusively on the unearned premiums relating to debt incurred in the Ordinary Course of Business in connection with the financing of
insurance premiums; provided, that the amount of debt secured by such Liens shall not exceed $3,000,000 in any twelve-month period;

 

(o)       possessory
Liens in favor of customs and revenue authorities arising as a matter of law to secure payment of customs duties in connection with the
importation of goods in the Ordinary Course of Business;

 

(p)       Liens
in favor of any Borrower;

 

(q)       Liens
solely on any cash earnest money deposits made by any Borrower in connection with any letter of intent or purchase agreement with respect
to any transaction permitted hereunder;

 

(r)       other
Liens which do not secure indebtedness for borrowed money or letters of credit and as to which the aggregate amount of the obligations
secured thereby does not exceed $500,000;

 

(s)       Leases,
subleases or licenses of properties owned, leased or licensed by a Borrower, in each case, entered into in the ordinary course of business
so long as such leases, subleases and licenses are subordinate in all respects to the Liens granted and evidenced by the Security Documents
and do not, individually or in the aggregate, (i) interfere in any material respect with the ordinary conduct of the business of such
Borrower, or (ii) materially impair the use (for its intended purposes) or the value of the property subject thereto;

 

(t)       Liens
arising from UCC or PPSA financing statements filings relating to leases or consignment of goods entered into by a Borrower in the Ordinary
Course of Business and not prohibited by this Agreement; and

 

(u)       in
the case of any non-wholly owned subsidiary of a Borrower, any put and call arrangements or restrictions on disposition related to its
Equity Interests set forth in its organizational documents or any related joint venture or similar agreement so long as such Equity Interests
do not constitute Disqualified Equity Interests.

 

For purposes of
determining compliance with Section 5.2, (x) a Lien need not be incurred solely by reference to one category of Permitted
Liens but may be incurred under any combination of such categories (including in part under one such category and in part under any
other such category) and (y) in the event that a Lien (or any portion thereof) meets the criteria of one or more of such categories
of Permitted Liens, the Borrowers, in their sole discretion, may classify or may subsequently reclassify at any time such Lien (or
any portion thereof) in any manner that complies with this definition and Section 5.2; provided that all Liens
securing the Obligations shall at all times be justified in reliance only on the exception in clause (f) of this definition.

 

     

     

    

 

As used herein, the following
terms have the following meanings:

 

“Capital Lease Obligations”
of any Borrower shall mean all obligations of such Borrower to pay rent or other amounts under any lease (or other arrangement conveying
the right to use) of real or personal property, or a combination thereof, which obligations are required to be classified and accounted
for as capital leases on a balance sheet of such Borrower, and the amount of such obligations shall be the capitalized amount thereof.

 

“Disqualified Equity
Interests” means any Equity Interest in a Person which, by its terms (or by the terms of any security into which it is convertible
or for which it is exchangeable), or upon the happening of any event, (a) matures or is mandatorily redeemable pursuant to a sinking fund
obligation or otherwise, or is redeemable at the option of the holder thereof (whether described as a “put option” or otherwise),
in whole or in part, on or prior to the date that is ninety-one (91) days after the Expiration Date (excluding any provisions requiring
redemption upon a “change of control” or asset sale; provided that any such “change of control” or asset sale
shall be subject to the prior repayment in full of the Loan and other Obligations that are accrued and payable and the termination of
the Line of Credit), (b) is convertible into or exchangeable for (i) debt securities or (ii) any Equity Interests referred to in clause
(a) above, or (c) is entitled to receive a mandatory dividend or distribution (other than for taxes attributable to the operations of
the business) on or prior to the date that is ninety-one (91) days after the Expiration Date

 

“Equity Interests”
means, with respect to any Person, all of the shares of capital stock of (or other ownership or profit interests in) such Person, all
of the warrants, options or other rights for the purchase or acquisition from such Person of shares of capital stock of (or other ownership
or profit interests in) such Person, all of the securities convertible into or exchangeable for shares of capital stock of (or other ownership
or profit interests in) such Person or warrants, rights or options for the purchase or acquisition from such Person of such shares (or
such other interests), and all of the other ownership or profit interests in such Person (including partnership, member or trust interests
therein), whether voting or nonvoting, and whether or not such shares, warrants, options, rights or other interests are outstanding on
any date of determination.

 

“Lien”
means any mortgage, deed of trust, pledge, lien, security interest, charge or other encumbrance or security arrangement of any nature
whatsoever, whether voluntarily or involuntarily given, including any conditional sale or title retention arrangement, and any assignment,
deposit arrangement or lease intended as, or having the effect of, security and any filed financing statement or other notice of any of
the foregoing (whether or not a lien or other encumbrance is created or exists at the time of the filing).

 

“Ordinary Course
of Business” means the ordinary course of business of any Borrower, consistent with past practices and undertaken in good faith.

 

“Payment Item”
means each check, draft or other item of payment payable to a Borrower, including those constituting proceeds of any collateral under
this Agreement.

  

“Person”
means any natural person, corporation, limited liability company, trust, joint venture, association, company, partnership or other entity.

 

“Properly Contested”
means with respect to any obligation of a Borrower, (a) the obligation is subject to a bona fide dispute regarding amount or such Borrower’s
liability to pay; (b) the obligation is being properly contested in good faith by appropriate proceedings promptly instituted and diligently
pursued; (c) appropriate reserves have been established; and (d) non-payment could not reasonably be expected to materially adversely
affect the business, assets, operations, condition (financial or otherwise) or results of operation of such Borrower.

 

     

     

    

 

	3.7	Litigation. Describe pending and threatened litigation, investigations, proceedings, etc. below:

 

None.

 

		3.10	Environmental Matters. Describe pending or threatened litigation or proceeding arising under,
relating to or in connection with any Environmental Law below:

 

None.

 

		5.2	Permitted Liens and Encumbrances.

 

Permitted Liens (as defined
in Section 3.6 of this Addendum).

 

     

     

    

 

SCHEDULE 3.6

to

Loan Agreement

 

EXISTING LIENS

 

Ricoh Canada Inc. has a security interest in certain office
equipment of Med-Eng Holdings ULC.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00335-of-00352.parquet"}]]