Document:

EX-10.2

 Exhibit 10.2 
 INDEMNIFICATION AGREEMENT 
 This Indemnification Agreement
(“Agreement”) is entered into as of the              day of November, 2011, by and between Intellinetics, Inc., an Ohio corporation (the “Corporation”) and
                             (“Indemnitee”), a member of the board of directors
(“Board”) of the Corporation. 
 WHEREAS, it is essential to the Corporation to retain and attract as directors and
officers the most capable persons available; and 
 WHEREAS, the substantial risks of litigation against corporations and their
directors and officers subjects directors and officers of the Corporation to the possible necessity of incurring extraordinary expenses out of their personal funds either while directors’ and officers’ liability insurance may be
unavailable to them or because the expenditure is not covered by insurance policies then in effect; and 
 WHEREAS, it is the
policy of the Corporation to indemnify its directors and officers so as to provide them with the maximum possible protection permitted by law; and 
 WHEREAS, so as to assure that Indemnitee is willing to serve as a director, and the Corporation desires Indemnitee to serve as a director; 

NOW, THEREFORE, in consideration of Indemnitee’s service as a director of the Corporation, the Corporation and Indemnitee hereby
agree as follows: 
 1. Agreement to Serve. Indemnitee agrees to serve as a director of the Corporation for so long as
Indemnitee is duly elected or appointed or until such time as Indemnitee tenders Indemnitee’s resignation in writing or otherwise Indemnitee’s service is terminated in accordance with the Corporation’s Code of Regulations and
applicable law. Notwithstanding anything to the contrary, this Agreement does not constitute either an employment contract or any commitment, express or implied, to cause Indemnitee to be elected as a director. 

2. Definitions. As used in this Agreement: 
 (a) “Proceeding” includes, without limitation, any threatened, pending, or completed action, suit, or proceeding, including any appeals related thereto, whether brought by or in the right of the
Corporation or otherwise, and whether of a civil, criminal, administrative, or investigative nature, in which Indemnitee is or was a party or is threatened to be made a party by reason of the fact that Indemnitee is or was a director or officer of
the Corporation (or of any predecessor or subsidiary of the Corporation or any successor to the Corporation by merger), or is or was serving at the request of the Corporation as a director, officer, employee, member, manager, agent, or fiduciary of
any other corporation, partnership, joint venture, trust, or other 

  
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enterprise (including but not limited to a subsidiary). Such request by the Corporation shall be presumed to exist in the case of a subsidiary or other entity in which the Corporation has an
investment or contractual interest. “Proceeding” also includes an action by Indemnitee, including without limitation any mediation or arbitration, to establish or enforce a right of Indemnitee under this Agreement. 

(b) “Expenses” include, without limitation, expenses of investigation, costs of judicial or administrative proceedings or
appeals, amounts paid in settlement by or on behalf of Indemnitee, attorneys’ fees and disbursements, costs of meals, lodging and travel reasonably and necessarily incurred by Indemnitee to attend any Proceeding or event related to the
Proceeding including but not limited to depositions and mediation sessions, and any other defense costs incurred by Indemnitee in connection with any Proceeding, but shall not include judgments, fines, or penalties finally assessed against
Indemnitee. 
 (c) “Other enterprises” include employee benefit plans; “fines” include any excise taxes
assessed on Indemnitee with respect to any employee benefit plan; “serving at the request of the Corporation” includes any service as a director, officer, employee, member, manager or agent of the Corporation which imposes duties on, or
involves services by, such director, officer, employee, member, manager, agent, or fiduciary with respect to an employee benefit plan, its participants, or beneficiaries; and a person who acted in good faith and in a manner Indemnitee reasonably
believed to be in the interest of the participants and beneficiaries of an employee benefit plan shall be deemed to have acted in a manner “not opposed to the best interest of the Corporation” as referred to in this Agreement. 

(d) “Independent Counsel” means a law firm, or a member of a law firm, that is experienced in matters of corporate law and
neither currently is, nor in the five years previous to its selection or appointment has been, retained to represent (i) the Corporation or Indemnitee in any matter material to either such party (other than with respect to matters concerning
Indemnitee under this Agreement or of other indemnitees under similar indemnification agreements) or (ii) any other party to the Proceeding giving rise to a claim for indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable standards of professional conduct then prevailing, would have a conflict of interest in representing either the Corporation or Indemnitee in an action to
determine Indemnitee’s rights under this Agreement. 
 (e) “Change of Control” means any one of the following
circumstances occurring after the date hereof: (i) there shall have occurred an event required to be reported with respect to the Corporation in response to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item or
any similar schedule or form) under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), regardless of whether the Corporation is then subject to such reporting requirement; (ii) any “person” or
“group” (as such terms are used in Sections 13(d) and 14(d) of the Exchange Act) shall have become the “beneficial owner” (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of the Corporation
representing 15% or more of the combined voting power of the Corporation’s then outstanding voting securities (provided that, for purposes of this clause (ii), the term “person” shall exclude (x) the Corporation, (y) any
trustee or other fiduciary holding securities under an employee benefit plan of the Corporation, and (z) any corporation owned, directly or indirectly, by the 

  
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shareholders of the Corporation in substantially the same proportions as their ownership of stock of the Corporation); (iii) there occurs a merger or consolidation of the Corporation with
any other entity, other than a merger or consolidation which would result in the voting securities of the Corporation outstanding immediately prior to such merger or consolidation continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than 51% of the combined voting power of the voting securities of the surviving entity outstanding immediately after such merger or consolidation and with the power to elect at least a
majority of the Board or other governing body of such surviving entity; (iv) all or substantially all the assets of the Corporation are sold or disposed of in a transaction or series of related transactions; (v) the approval by the
shareholders of the Corporation of a complete liquidation of the Corporation; or (vi) during any period of two consecutive years, individuals who at the beginning of such period constitute the Board of Directors of the Corporation and any new
director whose election by the Board of Directors or nomination for election by the Corporation’s shareholders was approved by a vote of at least two-thirds of the directors then still in office who either were directors at the beginning of the
period or whose election or nomination for election was previously so approved, cease for any reason to constitute a majority thereof. 
 3. Indemnity in Third-Party Proceedings. The Corporation shall indemnify Indemnitee against all Expenses, judgments, fines, and penalties actually and reasonably incurred by Indemnitee in
connection with the defense or settlement of any Proceeding (other than a Proceeding by or in the right of the Corporation to procure a judgment in its favor, and other than a Proceeding brought or initiated voluntarily by Indemnitee), but only if
Indemnitee acted in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation, and, in the case of a criminal proceeding, had no reasonable cause to believe that
Indemnitee’s conduct was unlawful. The termination of any, such Proceeding by judgment, order, settlement, conviction, or upon a plea of nolo contendere or its equivalent, shall not, of itself, create a presumption that Indemnitee did not act
in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation or, with respect to any criminal proceeding, that Indemnitee had reasonable cause to believe that Indemnitee’s
conduct was unlawful. 
 4. Indemnity in Proceedings By or In the Right of the Corporation. The Corporation shall
indemnify Indemnitee against all Expenses actually and reasonably incurred by Indemnitee in connection with the defense or settlement of any Proceeding by or in the right of the Corporation to procure a judgment in its favor, but only if Indemnitee
acted in good faith and in a manner which Indemnitee reasonably believed to be in or not opposed to the best interests of the Corporation; except that no indemnification for Expenses shall be made under this section in respect of any claim, issue or
matter as to which Indemnitee shall have been adjudged to be liable to the Corporation for negligence or misconduct in the performance of Indemnitee’s duty to the Corporation, unless (and then only to the extent that) the court in which such
Proceeding was brought shall determine upon application that, despite the adjudication of liability but in view of all the circumstances of the case, Indemnitee is fairly and reasonably entitled to indemnity for such Expenses which such court shall
deem proper. 

  
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 5. Indemnification of Expenses of Successful Party. Notwithstanding any other
provision of this Agreement: 
 (a) To the extent that Indemnitee has been successful on the merits or otherwise, including by a
settlement, in defense of any Proceeding, or in defense of any one or more claims, issues or matters included therein, Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by Indemnitee in connection therewith; and

 (b) Indemnitee’s Expenses actually and reasonably incurred in connection with successfully establishing or enforcing, in
whole or in part, Indemnitee’s right to indemnification or advancement of Expenses under this Agreement or otherwise, shall also be indemnified by the Corporation. 
 6. Advances of Expenses. At the written request of Indemnitee, the Expenses reasonably incurred by Indemnitee in any Proceeding, including Expenses billed but not yet paid, shall be paid directly
(or if already paid by Indemnitee, shall be reimbursed to Indemnitee) by the Corporation from time to time in a timely manner in advance of the final disposition of such Proceeding, provided that Indemnitee shall undertake in writing to repay the
amounts advanced if and to the extent that it is ultimately determined that Indemnitee is not entitled to indemnification. Indemnitee shall not be required to provide security for such undertaking. If the Corporation makes an advance of Expenses
pursuant to this section, the Corporation shall be subrogated to every right of recovery Indemnitee may have against any insurance carrier from whom the Corporation has purchased insurance for such purpose. 

7. Right of Indemnitee to Indemnification Upon Application; Procedure Upon Application. 

(a) Any indemnification or advancement of Expenses under this Agreement shall be paid by the Corporation no later than 30 days after
receipt of the written request of Indemnitee, unless a determination is made within said 30-day period that Indemnitee has not met the standards for indemnification set forth in the relevant section or sections of this Agreement by either:

 (i) If a Change of Control shall not have occurred: 

(A) The Board by a majority vote of a quorum consisting of directors who were not and are not parties to the Proceeding in respect of
which indemnification is being sought (“Disinterested Directors”), or 
 (B) If there are no such Disinterested
Directors, or if such Disinterested Directors so direct, by Independent Counsel in a written opinion, or 

  
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 (C) The shareholders of the Corporation by vote of a majority of a quorum at
a meeting duly called and held; or 
 (ii) If a Change of Control shall have occurred, by Independent Counsel in
a written opinion. 
 (b) Indemnitee’s right to indemnification or advancement of Expenses as provided by this Agreement
shall be enforceable by Indemnitee in any court of competent jurisdiction. The burden of proving that such indemnification or advancement is not appropriate shall be on the Corporation. Neither the failure of the Corporation (including the Board or
Independent Counsel or the shareholders) to have made a determination prior to the commencement of such action that Indemnitee has met the applicable standard of conduct nor an actual determination by the Corporation (including the Board or
Independent Counsel or the shareholders) that Indemnitee has not met such standard shall be a defense to the action or create a presumption that Indemnitee has not met the applicable standard of conduct. 

(c) With respect to any Proceeding for which indemnification or advancement of Expenses is requested, the Corporation will be entitled to
participate therein at its own expense and, except as otherwise provided below, the Corporation may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. After notice from the Corporation to Indemnitee of its election to
assume the defense of a Proceeding, the Corporation will not be liable to Indemnitee under this Agreement for any Expenses subsequently incurred by Indemnitee in connection with the defense thereof, other than as provided below. The Corporation
shall not settle any Proceeding in any manner which would impose any penalty or limitation on Indemnitee without Indemnitee’s written consent. Indemnitee shall have the right to employ counsel in any Proceeding but the fees and expenses of such
counsel incurred after notice from the Corporation of its assumption of the defense of the Proceeding shall be at the expense of Indemnitee and shall not be advanced or indemnified by the Corporation, unless: 

(i) The employment of counsel by Indemnitee has been authorized by the Corporation, or 

(ii) Indemnitee shall have reasonably concluded, in writing sent to the Corporation, that there may be a conflict of
interest between the Corporation and Indemnitee in the conduct of the defense of a Proceeding, or 
 (iii) The
Corporation shall not in fact have employed counsel to assume the defense of a Proceeding, or 
 (iv) Such
Expenses of counsel are actually and reasonably incurred in connection with successfully establishing, in whole or in part, Indemnitee’s right to indemnification or advancement of Expenses under this Agreement or otherwise, 

in each of which cases the fees and expenses of Indemnitee’s counsel shall be advanced by the Corporation. 

  
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 Notwithstanding the foregoing, the Corporation shall not be entitled to assume the defense of any Proceeding
brought by or in the right of the Corporation. 
 8. Limitation on Indemnification. No payment pursuant to this Agreement
shall be made by the Corporation: 
 (i) To indemnify or advance funds to Indemnitee for Expenses with respect
to Proceedings initiated or brought voluntarily by Indemnitee and not by way of defense, except with respect to Proceedings brought to establish or enforce a right to indemnification or advancement of expenses under this Agreement, but such
indemnification or advancement of Expenses may be provided by the Corporation in specific cases if the Board finds it to be appropriate; 
 (ii) To indemnify Indemnitee for any Expenses, judgments, fines, or penalties sustained in any Proceeding for which payment is actually made to Indemnitee under a valid and collectible insurance policy,
except in respect of any deductible or retention amount, or any excess beyond the amount of payment under such insurance; 
 (iii) To indemnify Indemnitee for any Expenses, judgments, fines or penalties sustained in any Proceeding for an accounting of profits made from the purchase or sale by Indemnitee of securities of the
Corporation pursuant to the provisions of § 16(b) of the Exchange Act, the rules and regulations promulgated thereunder and amendments thereto or similar provisions of any federal, state, or local statutory law; 

(iv) To indemnify Indemnitee for any Expenses, judgments, fines or penalties resulting from Indemnitee’s conduct
which is finally adjudged to have been willful misconduct, knowingly fraudulent, or deliberately dishonest; or 

(v) If a court of competent jurisdiction finally determines that such payment is unlawful 

9. Indemnification Hereunder Not Exclusive. The indemnification and advancement of Expenses provided by this Agreement shall not
be deemed exclusive of any other rights to which Indemnitee may be entitled under the Articles of Incorporation or the Code of Regulations of the Corporation, any other agreement, any vote of shareholders or disinterested directors, the General
Corporation Law of the State of Ohio, or otherwise, both as to action in Indemnitee’s official capacity and as to action in another capacity while holding such directorship or office. The indemnification provided by this Agreement shall
continue as to Indemnitee even though Indemnitee may have ceased to be a director and shall inure to the benefit of Indemnitee’s personal representatives, heirs, legatees and assigns. 

  
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 10. Partial Indemnification. If Indemnitee is entitled under any provision of this
Agreement to indemnification by the Corporation for a portion of the Expenses, judgments, fines, or penalties actually and reasonably incurred by him or her in any Proceeding but not, however, for the total amount thereof, the Corporation shall
nevertheless indemnify Indemnitee for the portion of such Expenses, judgments, fines, or penalties to which Indemnitee is entitled. 
 11. Presumption and Burden of Proof. In any adjudication, opinion by counsel, or decision by the Board or shareholders referred to in this Agreement or otherwise that involves the determination,
directly or indirectly, as to whether Indemnitee is entitled to indemnification, including the advancement of Expenses, there shall be a presumption that Indemnitee is entitled to indemnification. The Corporation or any other person opposing
indemnification shall have the burden of proof to overcome the presumption in favor of indemnification by clear and convincing evidence. 
 12. Selection of Independent Counsel. 
 (a) If an opinion of Independent
Counsel shall be required pursuant to Section 7(a)(ii), such counsel shall be selected by Indemnitee, and Indemnitee shall give written notice to the Corporation advising it of the identity of the Independent Counsel. If an opinion of
Independent Counsel shall be required pursuant to Section 7(a)(i)(B), such counsel shall be selected by the Corporation, in which case the Corporation shall give written notice to Indemnitee advising him or her of the identity of the
Independent Counsel. In either event, Indemnitee or the Corporation, as the case may be, may, within 10 days after such written notice of selection shall have been received, deliver to the Corporation or to Indemnitee, as the case may be, a written
objection to such selection; provided, however, that such objection may be asserted only on the ground that the Independent Counsel so selected does not meet the requirements of “Independent Counsel” as defined in Section 2 of this
Agreement, and the objection shall set forth with particularity the factual basis of such assertion. Absent a proper and timely objection, the person so selected shall act as Independent Counsel. If such written objection is so made and
substantiated, the Independent Counsel so selected may not serve as Independent Counsel unless and until such objection is withdrawn or a court of competent jurisdiction has determined that such objection is without merit. If, within 20 days after
the later of submission by Indemnitee of a written request for indemnification pursuant to Section 7 hereof and the final disposition of the Proceeding, no Independent Counsel shall have been selected and not objected to, either the Corporation
or Indemnitee may petition a court of competent jurisdiction for resolution of any objection which shall have been made by the Corporation or Indemnitee to the other’s selection of Independent Counsel and/or for the appointment as Independent
Counsel of a person selected by the court or by such other person as the court shall designate, and the person with respect to whom all objections are so resolved or the person so appointed shall act as Independent Counsel under Section 7
hereof. Upon the due commencement of any judicial proceeding or arbitration pursuant to this Agreement, the Independent Counsel shall be discharged and relieved of any further responsibility in such capacity (subject to the applicable standards of
professional conduct then prevailing). 

  
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 (b) Nothing herein shall prohibit the Board from selecting Indemnitee’s defense counsel
for this purpose if the Board determines this to be in the best interest of the Corporation as an appropriate way to determine the potential liability of Indemnitee. 
 (c) The Corporation agrees to pay the reasonable fees and expenses of any Independent Counsel serving under this Agreement. 
 13. Settlement of Proceedings. In the case of a Proceeding by Indemnitee to establish or enforce a right of Indemnitee under this Agreement, the Corporation shall have the right at any time during
such Proceeding to make the determination that it is in the best interests of the Corporation to settle the Proceeding, and to pay all or part of the indemnity sought as a part of such settlement. 

14. Arbitration. If the Corporation makes a determination that Indemnitee is not entitled to indemnity in connection with a
Proceeding, Indemnitee shall have the right to de novo review of such determination before a panel of arbitrators chosen in accordance with the commercial arbitration rules of the American Arbitration Association. 

15. Maintenance of Liability Insurance. 
 (a) The Corporation hereby covenants and agrees that, as long as Indemnitee continues to serve as a director of the Corporation and thereafter as long as Indemnitee may be subject to any Proceeding, the
Corporation, subject to subsection (c) of this section, shall maintain in full force and effect directors’ and officers’ liability insurance (“D&O Insurance”) in reasonable amounts from established and reputable
insurers. 
 (b) In all D&O Insurance policies, Indemnitee shall be named as an insured in such a manner as to provide the
Indemnitee the same rights and benefits as are accorded to the most favorably insured of the Corporation’s directors and officers. Further, in all policies of D&O Insurance, coverage for Indemnitee shall include but not be limited to the
following: 
 (i) Claims asserted by the Corporation’s present or past shareholders, directors, employees,
lenders, customers, suppliers, competitors and regulators, as well as claims in connection with class actions, claims arising out of mergers and acquisitions and antitrust claims asserted by governmental or private parties; but the policy may
exclude claims by one insured against another insured, except for employment claims; 
 (ii) No exclusion for
Indemnitee’s negligence; 

  
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 (iii) No exclusion for fraud or deliberate dishonesty, except if there has
been a final adjudication of fraud or dishonesty by a court of competent jurisdiction; 
 (iv) Punitive and
exemplary damages as well as the multiplied portion of any damage award; and 
 (v) Any and all Expenses,
judgments, fines and penalties not indemnifiable pursuant to this Agreement, the Corporation’s Articles of Incorporation or Code of Regulations, the General Corporation Law of the State of Ohio, or the laws, rules or regulations of any other
jurisdiction or state or federal agency whose laws, rules or regulations may be applicable. 
 (c) Notwithstanding the
foregoing, the Corporation shall have no obligation to obtain or maintain D&O Insurance if and to the extent that the Corporation determines in good faith that such insurance is not reasonably available, the premium costs for such insurance are
disproportionate to the amount of coverage provided, the coverage provided by such insurance is so limited by exclusions that it provides an insufficient benefit, or Indemnitee is covered by similar insurance maintained by a subsidiary of the
Corporation. 
 16. Miscellaneous. 
 (a) Savings Clause. If this Agreement or any portion hereof is invalidated on any ground by any court of competent jurisdiction, the Corporation shall nevertheless indemnify Indemnitee to the
extent permitted by any applicable portion of this Agreement that has not been invalidated or by any other applicable law. 

(b) Notice. Indemnitee shall, as a condition precedent to his right to be indemnified under this Agreement, give to the
Corporation notice in writing as soon as practicable of any Proceeding for which indemnity will or could be sought under this Agreement. Notice to the Corporation shall be directed to Intellinetics, Inc., Attention: President, at 2190 Dividend
Drive, Columbus, Ohio 43228, or such other address as is then its corporate headquarters, or such other address as the Corporation shall have designated in writing to Indemnitee at his last known residence or office address. Notice shall be deemed
received three days after the date postmarked if sent by prepaid mail, properly addressed. In addition, Indemnitee shall give the Corporation such information and cooperation as it may reasonably require and as shall be reasonably within
Indemnitee’s power. 
 (c) Counterparts. This Agreement may be executed in any number of counterparts, all of which
shall be deemed to constitute one and the same instrument. 
 (d) Applicable Law. This Agreement shall be governed by,
and construed and interpreted in accordance with, the law of the State of Ohio. 

  
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 (e) Successors and Assigns. This Agreement shall be binding upon the Corporation and
its successors and assigns and upon Indemnitee and his personal representatives, heirs, legatees and assigns. 
 (f)
Amendments. No amendment, waiver, modification, termination, or cancellation of this Agreement shall be effective unless in writing signed by both parties hereto. The indemnification rights afforded to Indemnitee hereby are contract rights
and may not be diminished, eliminated, or otherwise affected by amendments to the Articles of Incorporation or Code of Regulations of the Corporation or by other agreements without the express written agreement of the parties expressly referring to
and consenting to the provision by which such rights will be diminished, eliminated or otherwise affected. 
 IN WITNESS
WHEREOF, the parties hereto have caused this Agreement to be duly executed and signed as of the day and year first above written. 
  

	
	INTELLINETICS, INC.
	
	  
	William J. Santiago, President

  

	
	
	  

  

	
	  

  
 10EX-10.3

 Exhibit 10.3 
 Execution Version 
  
  

 
 LOAN AGREEMENT 

between 

THE DIRECTOR OF DEVELOPMENT 
 OF THE STATE OF OHIO 
 and 

INTELLINETICS, INC. 
 Dated 
 as of 

July 17, 2009 
  

 
  

 Execution Version 
 TABLE OF CONTENTS 
 (The Table of Contents is not a part of this
Agreement and is only for convenience of reference.) 
  

							
	 	  	 	  	Page	 
	 Preambles
	  		  	 	1	  
		  	 ARTICLE I
 Definitions
	  			
			
	 Section 1.1
	  	Use of Defined Terms	  	 	1	  
	 Section 1.2
	  	Definitions	  	 	1	  
	 Section 1.3
	  	Certain Words and References	  	 	9	  
			
		  	 ARTICLE II
 Determinations and Representations
	  			
			
	 Section 2.1
	  	Determinations of the Director	  	 	9	  
	 Section 2.2
	  	Representations and Warranties of the Company	  	 	10	  
			
		  	 ARTICLE III
 Loan; Provision of Project; Conditions to Disbursement
	  			
			
	 Section 3.1
	  	Loan and Repayment	  	 	14	  
	 Section 3.2
	  	Provision of Project	  	 	14	  
	 Section 3.3
	  	Plans and Specifications; Inspections	  	 	15	  
	 Section 3.4
	  	Company Required to Pay Costs in Event Proceeds Insufficient	  	 	15	  
	 Section 3.5
	  	Completion Date	  	 	15	  
	 Section 3.6
	  	Conditions to Disbursement	  	 	16	  
	 Section 3.7
	  	Postponement of Escrow Disbursement Termination Date	  	 	20	  
	 Section 3.8
	  	Payment of Costs; Indemnification	  	 	20	  
			
		  	 ARTICLE IV
 Additional Covenants and Agreements
	  			
			
	 Section 4.1
	  	Employment Statement; Job Creation	  	 	22	  
	 Section 4.2
	  	Public Offering	  	 	22	  
	 Section 4.3
	  	Affirmative Covenants of the Company	  	 	22	  
	 Section 4.4
	  	Negative Covenants of the Company	  	 	26	  

  

							
		  	 ARTICLE V
 Events of Default and Remedies; Termination
	  			
			
	 Section 5.1
	  	Events of Default	  	 	29	  
	 Section 5.2
	  	Remedies on Default	  	 	31	  
	 Section 5.3
	  	No Remedy Exclusive	  	 	31	  
	 Section 5.4
	  	Agreement to Pay Expenses and Attorneys’ Fees	  	 	32	  
	 Section 5.5
	  	No Waiver	  	 	32	  
			
		  	 ARTICLE VI
 Miscellaneous
	  			
			
	 Section 6.1
	  	Term of Agreement	  	 	32	  
	 Section 6.2
	  	Notices	  	 	32	  
	 Section 6.3
	  	 Extent of Covenants of the Director;
 No Personal Liability
	  	 	33	  
	 Section 6.4
	  	Binding Effect	  	 	33	  
	 Section 6.5
	  	Amendments and Supplements	  	 	.33	  
	 Section 6.6
	  	Execution Counterparts	  	 	33	  
	 Section 6.7
	  	Severability	  	 	33	  
	 Section 6.8
	  	Captions; Entire Agreement	  	 	33	  
	 Section 6.9
	  	Interpretation	  	 	34	  
	 Section 6.10
	  	Waiver of Jury Trial	  	 	34	  
	 Section 6.11
	  	Governing Law	  	 	34	  
			
	Signatures	  		  	 	35	  
		
	 Exhibit A—FORM OF NOTE
	  			
		
	 Exhibit B—PROJECT EQUIPMENT
	  			
		
	 Exhibit C— PROJECT INTANGIBLE FACILITIES
	  			
		
	 Schedule 1.2—SCHEDULE OF DEVELOPMENT
	  			
		
	 Schedule 2.2(k)—FINANCIAL STATEMENTS
	  			

  
 ii 

 LOAN AGREEMENT 

THIS LOAN AGREEMENT is made and entered into as of July 17, 2009 by and between the Director of Development (the
“Director”) of the State of Ohio (the “State”), acting on behalf of the State, and Intellinetics, Inc., an Ohio corporation (the “Company”), under the circumstances summarized in the following recitals (the capitalized
terms used in the recitals being used therein as defined in Article I hereof): 
 A. Pursuant to the Act, the Director is
authorized, among other things, to make loans to assist in the financing of an Eligible Innovation Project. 
 B. The
Company has requested that the Director provide the financial assistance for the Project hereinafter described. 
 C. The
Director has determined that the Project constitutes an Eligible Innovation Project and that the financial assistance to be provided pursuant to this Agreement is appropriate under the Act and will be in furtherance and in implementation of the
public policy set forth in the Act. 
 D. The financial assistance to be provided pursuant to this Agreement has been
reviewed and approved by the Development Financing Advisory Council and the Controlling Board, pursuant to the Act. 
 NOW,
THEREFORE, in consideration of the premises and the representations and agreements hereinafter contained, the Director and the Company agree as follows: 
 ARTICLE I 
 Definitions 

Section 1.1. Use of Defined Terms. In addition to the words and terms elsewhere defined in this Agreement or by
reference to the Security Documents or other instruments, the words and terms set forth in Section 1.2 hereof shall have the meanings therein set forth unless the context or use expressly indicates different meaning or intent. Such definitions
shall be equally applicable to both the singular and plural forms of any of the words and terms therein defined. 

Section 1.2. Definitions. As used herein: 
 “Act” means Chapter 166, Ohio Revised Code, as from time to time enacted and amended. 
 “Agreement” means this Loan Agreement, as the same may be amended, modified, supplemented, restated or replaced from time to time. 

“Allowable Innovation Costs” means “allowable innovation costs” of the Project within the meaning of the Act.

 “Application” means the Application of the Company submitted to the
Director requesting assistance under the Act and approved as of December 8, 2008. 
 “Business Day” means
any day that is not a Saturday, a Sunday or a day on which banks are required or permitted to be closed in the State of Ohio and on which the New York Stock Exchange is not closed. 

“City” means the city of Hilliard, Ohio. 
 “Closing Date” means July 17, 2009, the date of execution and delivery of the Loan Documents. 
 “Collateral” shall have the same meaning as defined in the Security Agreement. 
 “Commitment” means the Commitment Letter between the Director and the Company dated January 20, 2009. 
 “Code” means the Internal Revenue Code of 1986, and any successor statute of similar import, together with all rules and regulations thereunder, as amended, reformed or otherwise modified
from time to time. References to sections or titles of the Code shall be construed to also refer to successor sections or titles. 
 “Completion Date” means the date of completion of the Project, as certified by the Company pursuant to Section 3.5 hereof. 

“Controlling Board” means the Controlling Board of the State. 

“Corrective Work” means all activities of removal, response, investigation, testing, analysis, remediation (including,
but not limited to disposal of Hazardous Substances) taken pursuant to Environmental Requirements (i) to prevent, abate, or correct a Release or threatened Release of Hazardous Substances at, about, affecting, or affected by the Project or the
Project Site or (ii) to comply with any and all Environmental Requirements applicable to the Project or the Project Site or areas at, about, affecting, or affected by the Project or the Project Site. 

“Cost Certification” means a certification of the Company, as of a specified date, setting forth in reasonable detail
the costs incurred and, if appropriate, to be incurred by the Company in completing the provision of the Project, including a detail by category of all Allowable Innovation Costs. 

“DCB Loan” means the loan in the principal amount of Two Hundred One Thousand Twenty-Four Dollars ($201,024.00) made by
Delaware County Bank and Trust Company to the Company pursuant to the DCB Loan Documents. 

  
 2 

 “DCB Loan Documents” means all documents, instruments and agreements
evidencing or securing the DCB Loan, as the same may be amended, modified, supplemented, restated or replaced from time to time with the prior written consent of the Director. 
 “Development Financing Advisory Council” means the Development Financing Advisory Council of the State. 
 “Disbursement Request” means each Disbursement Request in the form of Exhibit A attached to the Escrow Disbursing Agreement. 

“Eligible Innovation Project” means an “eligible innovation project” within the meaning of the Act and, with
respect to the Loan, means the Project. 
 “Environmental Activity” means any actual or threatened storage,
holding, existence, Release, emission, discharge, transportation or disposal of any Hazardous Substance from, under, into or on the Project and/or the Project Site or otherwise relating to the Project and/or the Project Site or any Use of the
Project and/or the Project Site which is regulated by or for which standards of conduct or liability are imposed by any Environmental Requirements. 
 “Environmental Laws” means the Comprehensive Environmental Response, Compensation and Liability Act (“CERCLA”), 42 U.S.C. §9601 et seq., the Resource
Conservation and Recovery Act, 42 U.S.C. §6901 et seq., the Hazardous Materials Transportation Act, 49 U.S.C. §5101 et seq., the Toxic Substances Control Act, 15 U.S.C. §2601 et seq., the
Federal Water Pollution Control Act (Clean Water Act), 33 U.S.C. §1251 et seq., the Clean Air Act, 42 U.S.C. §7401 et seq., regulations promulgated thereunder, and any other federal, state, county, municipal,
local or other statute, law, principles of common law, ordinance or regulation and any consent decrees, settlement agreements, judgments, orders, directives, policies or programs issued by or entered into with a Governmental Authority which may
relate to or deal with (i) pollution or pollution control; (ii) protection of human health from exposure to regulated substances; (iii) protection of the environment; (iv) the presence, use, management, generation, manufacture,
processing, extraction, treatment, recycling, refining, reclamation, labeling, packaging, sale, transport, storage, collection, distribution, disposal or release or threat of release of regulated substances; (v) the presence of contamination;
(vi) the protection of endangered species; and (vii) the protection of environmentally sensitive areas. References to sections or titles of any Environmental Law shall be construed to also refer to successor sections or titles. 

“Environmental Requirements” means all present and future laws, including but not limited to Environmental Laws,
authorizations, judgments, decrees, concessions, grants, orders, franchises, agreements and other restrictions and requirements (whether or not arising under statutes or regulations) relating to any Hazardous Substances or Environmental Activity.

 “ERISA” means the Employee Retirement Income Security Act of 1974, as the same may be amended or
supplemented from time to time, and any successor statute of similar import, and the rules and regulations thereunder, as from time to time in effect. 

  
 3 

 “ERISA Affiliate” means at any time, the Company and all members of a
controlled group of corporations and all trades or businesses (whether or not incorporated) under common control and all other entities which, together with the Company, are treated as a single employer under Section 414(b) and/or (c) of
the Internal Revenue Code. 
 “Escrow Account” means the Escrow Account as defined in the Escrow Disbursing
Agreement. 
 “Escrow Agent” means The Huntington National Bank, in its capacity as Escrow Agent under the
Escrow Disbursing Agreement. 
 “Escrow Disbursement Date” means each date upon which Escrow Funds are
disbursed to, or for the benefit of, the Company from the Escrow Account pursuant to the Escrow Disbursing Agreement, and the final Escrow Disbursement Date shall not be later than July 30, 2010. There shall not be more than one (1) Escrow
Disbursement Date in any thirty (30) day period. 
 “Escrow Disbursement Termination Date” means
July 30, 2010, or such subsequent date as may be established by the Director in writing in accordance with Section 3.7 hereof for the disbursement of the Loan. 
 “Escrow Disbursing Agreement” means the Escrow Disbursing Agreement of even date herewith among the Company, the Director and the Escrow Agent, as the same may be amended, modified,
supplemented, restated or replaced from time to time. 
 “Escrow Funding Date” means each date proceeds of the
Loan are funded to the Escrow Account in accordance with the terms of this Agreement and the Escrow Disbursing Agreement. There shall not be more than two (2) Escrow Funding Dates. 

“Escrow Funds” means the proceeds of the Loan disbursed into the Escrow Account in accordance with the terms of this
Agreement and the Escrow Disbursing Agreement. 
 “Event of Default” means any of the events described as an
event of default in Section 5.1 hereof. 
 “Final Cost Certification” means the Cost Certification dated as of
the Completion Date. 
 “Governing Instruments” means the articles of incorporation and code of regulations of
the Company and the Guarantor. 
 “Governmental Authority” means, collectively, the United States of America,
the State, any political subdivision thereof, any municipality, and any agency, department, commission, board or bureau of any of the foregoing having jurisdiction over the Project and/or the Project Site. 

  
 4 

 “Guarantor” means The Avatar Group, Inc., an Ohio corporation and
wholly-owned subsidiary of the Company. 
 “Guaranty” means the Guaranty of Payment by the Guarantor in favor
of the Director, of even date herewith, as the same may be amended, modified, supplemented, restated or replaced from time to time. 
 “Hazardous Substances” means: 
  

	 	(a)	any “hazardous substance” as defined in §101(14) of CERCLA (42 U.S.C. §9601(14)) or regulations promulgated thereunder; 

 

	 	(b)	any “solid waste”, “hazardous waste”, “infectious waste”, “pollutant”, or “hazardous air pollutant”, as such terms are
defined in any Environmental Law at such time; 

  

	 	(c)	asbestos, urea-formaldehyde, polychlorinated biphenyls, source, special nuclear or by-product material, chemical waste, radioactive material, explosives, known
carcinogens, petroleum products and by-products and other dangerous, toxic or hazardous pollutants, contaminants, chemicals, material or substances listed or identified in, or regulated by, any Environmental Law; and 

 

	 	(d)	any additional substances or materials which at such time are classified or considered to be hazardous or toxic under any Environmental Law. 

“Intercreditor Agreement” means the Intercreditor Agreement among the Company, the Director and the Delaware County Bank
and Trust Company, of even date herewith, as the same may be amended, modified, supplemented, restated or replaced from time to time. 
 “Landlord Waiver” means the Landlord Waiver between the Director and Dividend Drive, LLC, of even date herewith, as the same may be amended, modified, supplemented, restated or replaced
from time to time. 
 “Loan” means the loan by the Director to the Company in the total sum of the Loan Amount,
to be disbursed pursuant to the terms hereof and the Escrow Disbursing Agreement. 
 “Loan Amount” means the
lesser of (i) $1,012,500 and (ii) 75% of the Allowable Innovation Costs of the Project, as determined by the Director in the Director’s sole discretion pursuant to this Agreement. 

“Loan Approval Documents” means, with respect to the Loan, the Recommendation of the Director to the Development
Financing Advisory Council dated December 8, 2008, the Resolution of the Development Financing Advisory Council dated December 8, 2008, the Approval of the Controlling Board dated January 12, 2009, and the Commitment. 

  
 5 

 “Loan Documents” means all documents, instruments and agreements delivered
to or required by the Director to evidence or secure the Loan, including, but not limited to, this Agreement, the Note, the Guaranty, the Security Documents, and the Escrow Disbursing Agreement as required by the Commitment and this Agreement, as
the same may be amended, modified, supplemented, restated or replaced from time to time. 
 “Loss” is defined
in Section 3.8(b)(viii) hereof. 
 “Market Conditions” means those conditions determined by the Director,
with advice from the Federal Reserve Bank of Cleveland, with respect to which the Director shall consider the following: 
  

	 	(i)	two consecutive quarters of decline in information technology employment in the State as a whole, or when possible by relevant manufacturing sector. Employment figures
will be those reported by the Department of Job and Family Services of the State; 

  

	 	(ii)	a decline, as a whole or by relevant sector, in twelve (12) of the last thirty-six (36) months as detailed in the Federal Reserve’s National Industrial
Production Index; and 

  

	 	(iii)	a decline within the relevant sector of Standard & Poor’s “Industrial Outlook”. 

“Multiemployer Plan” means any employee benefit plan that is a “multiemployer plan” within the meaning of
Section 4001(a)(3) of ERISA and to which the Company or any ERISA Affiliate is then making or accruing an obligation to make contributions or, within the preceding five plan years, has made or had an obligation to make such contributions.

 “Note” means the cognovit promissory note, in the form attached hereto as Exhibit A, evidencing the
obligation of the Company to repay the Loan, as the same may be amended, modified, supplemented, restated or replaced from time to time. 
 “Notice Address” means: 
  

			
	 (a)     As to the Director:
	  	Ohio Department of Development
		  	Strategic Business Investment Division
		  	77 South High Street, 28th Floor
		  	P.O. Box 1001
		  	Columbus, OH 43216-1001
		  	Attn: Office of Financial Incentives
		
	 With a copy to:     
	  	Hahn Loeser & Parks LLP
		  	200 Public Square, Suite 2800
		  	Cleveland, OH 44114
		  	Attn: Christopher S.W. Blake, Esq.

  
 6 

  

			
	 (b)     As to the Company
	  	Intellinetics, Inc.
	 or Guarantor:         
	  	2190 Dividend Drive
		  	Hilliard, OH 43228
		  	Attn: Matthew Chretien
		
	 With a copy to:     
	  	Shumaker, Loop & Kendrick, LLP
		  	Huntington Center
		  	41 South High Street, Suite 2400
		  	Columbus, OH 43215
		  	Attn: Steven L. Smith, Esq.

 or such additional or different address, notice of which is given under Section 6.2 hereof. 

“Ohio Commercial Code” means the Uniform Commercial Code as in effect in the State of Ohio on the date hereof and as
amended from time to time except to the extent that the conflict of law rules of such Uniform Commercial Code shall apply the Uniform Commercial Code as in effect from time to time in any other state to specific property or other matters.

 “PBGC” means the Pension Benefit Guaranty Corporation established pursuant Subtitle A of Title IV of ERISA
or any successor. 
 “Perfection Certificate” means the Perfection Certificate delivered by the Company to the
Director, dated as of July 17, 2009. 
 “Plan” means any “employee pension benefit plan” (as
such term is defined in Section 3(2) of ERISA), other than a Multiemployer Plan) that is covered by Title IV of ERISA or is subject to the minimum funding standards under Section 412 of the Code and either (i) is maintained by the
Company or any ERISA Affiliate, or (ii) has at any time within the preceding five years been maintained by the Company or any ERISA Affiliate or to which at any time within the preceding five years contributions had been made by the Company or
any ERISA Affiliate. 
 “Plans and Specifications” means the plans and specifications or other appropriate
documents describing the Project prepared by or at the direction of the Company, including, but not limited to, the Schedule of Development attached hereto as Schedule 1.2. 

“Prohibited Transaction” means a transaction described in Section 4975 of the Code or Section 406 of ERISA
that is not the subject of an exemption pursuant to Section 4975(c)(2) of the Code or Section 408 of ERISA, respectively. 
 “Project” means the Project Site, the Project Equipment and the Project Intangible Facilities, together constituting an Eligible Innovation Project. 

  
 7 

 “Project Equipment” means the equipment, machinery and other personal
property described on Exhibit B attached hereto, as such Exhibit B is amended and supplemented from time to time in accordance with the terms of the Security Agreement. 
 “Project Intangible Facilities” means the intangible property related to a new product or process based on new technology or the creative application of existing technology, including
research and development, product or process testing, quality control, market research, and related activities, that is to be acquired, established, expanded, remodeled, rehabilitated, or modernized for industry, commerce, distribution, or research,
or any combination thereof, the operation of which, alone or in conjunction with other eligible projects, eligible innovation projects, or innovation property described in Exhibit C attached hereto. 

“Project Purposes” means the development of, testing of, training on, and protection of intellectual property rights
relating to the development of Company’s Intellivue software application into software as a service application. 

“Project Site” means 2190 Dividend Drive, Hilliard, Ohio 43228, or any subsequent location of the Company’s
principal place of business that the Company may move to in accordance with, and as permitted by, this Agreement and the other Loan Documents. 
 “Provision” means, as applicable, the acquiring, constructing, reconstructing, rehabilitating, renovating, enlarging, installing, improving, equipping or furnishing of the Project.

 “Release” means spilling, leaking, pumping, paving, emitting, emptying, discharging, injecting, escaping,
contaminating, leaching, disposing, releasing or dumping of any Hazardous Substance into the environment. 
 “Reportable
Event” means a “reportable event” within the meaning of Section 4043 of ERISA and the Regulations thereunder. 
 “Required Equity Contribution” means $337,500 to be provided by the Company in cash to pay a portion of the Allowable Innovation Costs of the Project. 

“Security Agreement” means the Security Agreement between the Director and the Company, of even date herewith, as the
same may be amended, modified, supplemented, restated or replaced from time to time. 
 “Security Documents”
means, collectively, the Security Agreement, the Intercreditor Agreement, the Landlord Waiver, the Perfection Certificate, and the UCC Financing Statements, as the same may be amended, modified, supplemented, restated or replaced from time to time.

 “State” means the State of Ohio. 
 “UCC Financing Statement” means a financing statement under Article 9 of the Ohio Commercial Code providing notice of the Director’s security interest in the Collateral. 

  
 8 

 “Use” means the use, ownership, development, construction, renovation,
maintenance, management, operation or occupancy of real property, including the Project Site. 
 Section 1.3.
Certain Words and References. Any reference herein to the Director shall include those succeeding to the Director’s functions, duties or responsibilities pursuant to or by operation of law or lawfully performing such functions. Any
reference to a section or provision of the Constitution of the State or to the Act or to a section, provision or chapter of the Ohio Revised Code shall include such section, provision or chapter as from time to time amended, modified, revised,
supplemented or superseded, provided that no such amendment, modification, supplementation, revision or supersession shall alter the obligation of the Company to pay all the amounts payable hereunder on the terms provided herein. All references to
“generally accepted accounting principles” shall have the meaning set forth in Statement on Auditing Standards No. 69, or any predecessor or successor pronouncement of the American Institute of Certified Public Accountants, in effect
for any applicable fiscal period. 
 Unless the context of this Agreement otherwise clearly requires, the following rules of
construction shall apply to this Agreement and each of the other Loan Documents: (i) references to the plural include the singular, the plural, the part and the whole and the words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”; (ii) the words “hereof,” “hereby,” “herein,” “hereto,” “hereunder” and similar terms refer to
this Agreement or such other Loan Document as a whole; (iii) the term “heretofore” means before, and the term “hereafter” means after, the date of delivery of this Agreement or such other Loan Document; (iv) article,
section, subsection, clause, schedule and exhibit references are to this Agreement or other Loan Document, as the case may be, unless otherwise specified; (v) reference to any person includes such person’s successors and assigns;
(vi) reference to any agreement, including this Agreement and any other Loan Document together with the schedules and exhibits hereto or thereto, document or instrument means such agreement, document or instrument as amended, modified,
replaced, substituted for, superseded or restated; (vii) relative to the determination of any period of time, “from” means “from and including”; (viii) the words “asset” and “property” shall be
construed to have the same meaning and effect and to refer to any and all applicable tangible and intangible assets and properties, including cash, securities, accounts and contract rights, (ix) section headings herein and in each other Loan
Document are included for convenience and shall not affect the interpretation of this Agreement or such Loan Document; and (x) words of the masculine gender include the feminine and the neuter, and when the sense so indicates, words of the
neuter gender may refer to any gender. 
 ARTICLE II 

Determinations and Representations 
 Section 2.1. Determinations of the Director. Pursuant to the Act and on the basis of the representations and other information provided by the Company, the Director has heretofore made
certain determinations, as set forth in the Loan Approval Documents, which are hereby confirmed, and the Director hereby determines that the financial assistance to be provided by the State pursuant

  
 9 

 to this Agreement will conform to the requirements of the Act, including Sections 166.12 to 166.16 thereof,
and will further and implement the purposes of the Act by creating new jobs or preserving existing jobs and employment opportunities and improving the economic welfare of the people of the State. 

Section 2.2. Representations and Warranties of the Company. The Company hereby represents and warrants that:

  

	 	(a)	Each of the Company and the Guarantor is a corporation for profit duly incorporated, organized, validly existing and in good standing under the laws of the State, and
has all requisite power to conduct its business as now conducted and to own, hold and lease its assets and properties and is duly qualified to do business in all other jurisdictions in which it owns property or conducts its business, except where
the failure to so qualify would not impair the ability of such party to perform any of its obligations under the Loan Documents to which it is a party or would not materially adversely affect the financial condition of such party, and will remain so
qualified and in good standing in such jurisdictions during the term of this Agreement. Other than the Guarantor, the Company has no subsidiaries. 

  

	 	(b)	The Company has full power and authority to execute, deliver and perform the Loan Documents, and to enter into and carry out the transactions contemplated thereby. Such
execution, delivery and performance do not, and will not, violate any provision of law applicable to the Company or the Governing Instruments of the Company and do not, and will not, conflict with or result in a default under any agreement or
instrument to which the Company is a party or by which it or any of its property or assets is or may be bound. The Loan Documents have, by proper action, been duly authorized, executed and delivered and constitute legal, valid and binding
obligations of the Company. 

  

	 	(c)	The provision of financial assistance pursuant to the Loan Approval Documents and this Agreement induced the Company to provide the Project, thereby creating new jobs
or preserving existing jobs and employment opportunities and improving the economic welfare of the people of the State. 

  

	 	(d)	The Provision of the Project will be completed and the Project and the Company’s business will be operated and maintained in such manner as to conform with all
applicable Environmental Laws and zoning, planning, building and other applicable governmental regulations imposed by any Governmental Authority and as to be consistent with the purposes of the Act. 

 

	 	(e)	The Company presently intends that the Project will be used and operated in a manner consistent with the Project Purposes until the date on which the Loan has been
fully repaid, and the Company knows of no reason why the Project will not be so operated. 

  
 10 

	 	(f)	There are no actions, suits or proceedings pending or threatened against or affecting either of the Company or the Guarantor or the Project which, if adversely
determined, would individually or in the aggregate materially impair the ability of the Company or the Guarantor to perform any of its obligations under the Loan Documents or the DCB Loan Documents to which it is a party or adversely affect the
financial condition of such party. 

  

	 	(g)	The Company is not in default under any of the Loan Documents or the DCB Loan Documents, or in the payment of any indebtedness for borrowed money or under any agreement
or instrument evidencing any such indebtedness, and no event has occurred which by notice, the passage of time or otherwise would constitute any such event of default. 

 

	 	(h)	The Project Site is zoned by the City under a zoning ordinance which permits the Provision of the Project thereon in accordance with the Plans and Specifications and
the operation of the Company’s business; and all utilities, including water, storm and sanitary sewer, gas, electric and telephone, and rights of access to public ways shall be available or will be provided to the Project Site in sufficient
locations and capacities to meet the requirements of operating the Project and the Company’s business and of any applicable Governmental Authority. 

  

	 	(i)	The Company has made no contract or arrangement of any kind, other than the Loan Documents and the DCB Loan Documents, which has given rise to, or the performance of
which by the other party thereto would give rise to, a lien or claim of lien on the Project, the Project Site or other collateral covered by the Loan Documents or the DCB Loan Documents and no materials or labor have heretofore been supplied to or
performed in connection with the Project, except as permitted under the Commitment. 

  

	 	(j)	No representation or warranty of either of the Company or the Guarantor contained in any of the Loan Approval Documents, Loan Documents or DCB Loan Documents to which
it is a party, and no statement contained in any certificate, schedule, list, financial statement or other instrument furnished to the Director by or on behalf of such party (including, without limitation, the Application), contains any untrue
statement of a material fact, or omits to state a material fact necessary to make the statements contained herein or therein not misleading. 

  

	 	(k)	The financial statements of the Company set forth on Schedule 2.2(k) and heretofore delivered to the Director are true and correct, in all respects, have been prepared
in accordance with generally accepted accounting principles consistently applied, and fairly present the financial condition and the results of operation of the Company as of the dates thereof. No materially adverse change has occurred in the
financial condition of the Company reflected therein since the respective dates thereof. 

  
 11 

	 	(1)	All proceeds of the Loan shall be used by the Company for the payment of Allowable Innovation Costs relating to the Provision of the Project. No part of any such
proceeds shall be knowingly paid to or retained by the Company or any member, owner, manager, partner, officer, shareholder, director or employee of the Company as a fee, kick-back or consideration of any type. The Company has no identity of
interest with the general contractor or any architect, subcontractor, laborer or materialman performing work or services or supplying materials in connection with the Provision of the Project. 

 

	 	(m)	The Company has (or will have upon acquisition) a good and marketable title to a leasehold interest in the Project Site and is the owner of the Project Equipment and
Project Intangible Facilities, subject in all cases to no lien, charge, easement, condition, restriction or encumbrance except as created by the Loan Documents and the DCB Loan Documents, or shown as Permitted Encumbrances under the Security
Documents. 

  

	 	(n)	(i)       The Company is and has been at all times in compliance with all applicable Environmental Requirements relating

 to the Project, the Project Site and the Use of the Project and the Project Site and neither the Company nor
the Guarantor has engaged in any Environmental Activity in violation of any applicable Environmental Requirements, nor has any Environmental Activity otherwise occurred, in violation of any applicable Environmental Requirements. 

 

	 	(ii)	No investigations, inquiries, orders, hearings, actions or other proceedings by or before any court or Governmental Authority are pending or threatened in connection
with any Environmental Activity or alleged Environmental Activity conducted upon the Project Site. 

  

	 	(iii)	No claims at any time have been made or threatened against the Company or the prior owners of the Project and/or the Project Site relating to damage, contribution, cost
recovery, compensation, penalty, loss or injury resulting from any Environmental Activity or Hazardous Substance. 

  

	 	(iv)	Neither the Company nor the Guarantor has any liability, absolute or contingent, in connection with any Environmental Activity. 

 

	 	(v)	No Hazardous Substances have been integrated into the Project, the Project Site or any component thereof in such manner or quantity as may reasonably be expected to or
in fact would pose a threat to human health or the value of the Project or the Project Site. 

  

	 	(vi)	No portion of the Project or the Project Site is located within 2,000 feet of (a) a Release of a Hazardous Substance which has been reported or is required to be
reported under any Environmental Requirements or (b) the location of any site used, in the past or presently, for the disposal of any Hazardous Substance. 

  
 12 

	 	(vii)	No occurrence or condition on any real property adjoining the Project Site exists which could cause the Project, the Project Site or any part thereof to be subject to
any restrictions on ownership, occupancy, transferability or operation under any Environmental Requirement. 

  

	 	(viii)	Neither the Company nor the Guarantor has engaged in any Environmental Activity and no Environmental Activity has otherwise occurred, and no notice, order, directive,
complaint or other written communication has been made or issued by a governmental agency or other person alleging the occurrence of Environmental Activity in, on or about the Project or the Project Site in violation of any Environmental
Requirements. 

  

	 	(ix)	Neither the Project nor the Project Site has been used for the disposal of Hazardous Substances. 

 

	 	(x)	None of its business operations conducted on the Project Site have contaminated lands, waters or other property of others with Hazardous Substances.

  

	 	(xi)	No underground or above ground storage tank (regardless of contents) is now located on, at or beneath the Project Site. 

 

	 	(xii)	Neither the Project nor the Project Site is subject to any claim which might give rise to a lien in favor of any Governmental Authority as a result of any Release or
threatened Release of any Hazardous Substance or Environmental Activity. 

  

	 	(o)	It shall provide the Required Equity Contribution by the Completion Date and otherwise in accordance with the terms hereof and the Escrow Disbursing Agreement.

  

	 	(p)	Allowable Innovation Costs which consist of the costs of (i) research and development of the Project, (ii) obtaining or creating any requisite software or
computer hardware related to Project or the products or services associated therewith, (iii) testing (including, without limitation, quality control activities necessary for initial production), perfecting, and marketing of such products and
services, and (iv) creating and protecting intellectual property related to the Project or any products or services related thereto, including costs of securing appropriate patent, trademark, trade secret, trade dress, copyright, or other form
of intellectual property protection for the Project or related products and services, are expenditures that can and will be capitalized under applicable generally accepted accounting principles. 

  
 13 

 ARTICLE III 
 Loan; Provision of Project; Conditions to Disbursement 

Section 3.1. Loan and Repayment. 
 (a) On the terms and conditions of this Agreement and the Commitment, the Director shall lend to the Company the Loan Amount to assist in the financing of the Project. The Loan shall be evidenced by this
Agreement and the Note and secured by the Security Documents and the other Loan Documents, as applicable. Those instruments shall be executed and delivered by the Company to the Director on the Closing Date. 

(b) The terms of repayment of the Loan shall be as set forth in the Note and the Company shall make all payments required to be made
under the Note as and when due. 
 (c) In addition to all other payments required under the Note, upon maturity of the Loan
(whether at scheduled maturity, by acceleration or otherwise), the Company shall pay to the Director a loan participation fee equal to 10% of the dollar amount of the Loan actually funded; provided, however, if the Loan is prepaid in full prior to
the end of the term of the Loan, the loan participation fee shall be paid to the Director at the time of such prepayment. 
 (d)
Proceeds of the Loan shall be disbursed into the Escrow Account on each Escrow Funding Date pursuant to the terms hereof and the Escrow Disbursing Agreement upon the satisfaction of the conditions set forth in Section 3.6(a) hereof and held in
accordance with the terms of this Agreement and the Escrow Disbursing Agreement. The Loan shall be disbursed only from, and only to the extent that on each Escrow Funding Date funds not heretofore committed are available to make the Loan from moneys
in, the “Innovation Ohio Loan Fund” created by the Act and as defined in the Act. 
 (e) The Escrow Funds shall be
available for disbursement until the Escrow Disbursement Termination Date, and thereafter, the Director shall have no obligation to make or approve any further disbursements from the Escrow Account. Any Escrow Funds disbursed to the Director from
the Escrow Account shall reduce the principal amount of the Note. 
 (f) The Escrow Funds shall be disbursed from the Escrow
Account on each Escrow Disbursement Date pursuant to the terms of this Agreement and the Escrow Disbursing Agreement. The Company shall be entitled to submit Disbursement Requests pursuant to the Escrow Disbursing Agreement not more frequently than
once in any thirty (30) day period and for amounts not less than Ten Thousand Dollars ($10,000) minimum. 
 (g) Each
payment of Allowable Innovation Costs of the Project shall funded 75% with Escrow Funds and 25% with the Required Equity Contribution. 

  
 14 

 Section 3.2. Provision of Project. The Company (a) has commenced or
shall promptly hereafter commence the Provision of the Project; (b) shall pay all expenses incurred in such Provision from funds made available therefor in accordance with this Agreement, the Required Equity Contribution or otherwise; and
(c) shall demand, sue for, levy and recover all sums of money and debts which may be due and payable under the terms of any contract, order, receipt, guaranty, warranty, writing or instruction in connection with the Provision of the Project and
will enforce the terms of any contract, agreement, obligation, bond or other performance security with respect thereto. The Company confirms its agreement in the Commitment that, to the extent applicable, all wages paid to laborers and mechanics
employed on the Provision of the Project shall be paid at not less than the prevailing rates of wages for laborers and mechanics for the class of work called for by the Project, which wages shall be determined in accordance with the requirements of
Chapter 4115, Ohio Revised Code, for determination of prevailing wage rates; provided that if the Company undertakes, as part of the Project, work to be performed by its regular bargaining unit employees who are covered under a collective
bargaining agreement which was in existence prior to the date of the Commitment, the rate of pay provided under the applicable collective bargaining agreement may be paid to such employees. 

Section 3.3. Plans and Specifications; Inspections. At the Director’s option, the Director may designate an
employee or officer of the State or may retain, at the Company’s expense, an architect, engineer, appraiser or other consultant for the purpose of approving the Plans and Specifications, verifying costs and performing inspections of the Project
as Provision of the Project progresses. Such inspections, reviews or approvals shall not impose any responsibility or liability of any nature upon the Director, the State or officers, employees, agents, representatives or designees of the Director
or the State, or, without limitation, make or cause to be made any warranty or representation as to the adequacy or safety of the structures or any of their component parts or any other physical condition or feature pertaining to the Project and the
Project Site. The Company shall, at the request of the Director, make periodic reports (including, if required, submission of updated Cost Certifications) to the Director concerning the status of completion and the expenditures for costs in respect
thereof. 
 The Company may revise the Plans and Specifications from time to time; provided that no revision shall be
made (a) which would change the Project Purposes to purposes other than those permitted by the Act; (b) without obtaining, to the extent required by law, the approval of any applicable Governmental Authority; and (c) without the prior
written approval of the Director if such revision would change the amounts set forth in the most recently furnished Cost Certification. In any event, all revisions to the Plans and Specifications shall be promptly filed with the Director.

 Section 3.4. Company Required to Pay Costs in Event Proceeds Insufficient. In the event that the proceeds
of the Loan and the Required Equity Contribution are not sufficient to pay all costs of the Project, the Company shall, nonetheless and irrespective of the cause of such deficiency, complete the Project in accordance with the Plans and
Specifications and pay all costs of such completion in full from its own funds. 
 Section 3.5. Completion
Date. The Completion Date shall occur not later than July 30, 2010, and shall be evidenced to the Director by a certificate of the Company stating (a) the Completion Date, (b) that all licenses, permits and approvals for the
Project required by any Governmental Authority have been procured and/or obtained, (c) that all improvements and 

  
 15 

 
additions reflected in the Plans and Specifications have been made and the Provision of the Project has been completed, (d) that all costs of providing the Project have been paid, and
(e) the date as of which operation of the Project shall commence. 
 Section 3.6. Conditions to
Disbursement. 
 (a) Disbursement of Loan Proceeds to Escrow Account. Prior to the Director authorizing disbursement
of any proceeds of the Loan to the Escrow Account pursuant to the terms of this Agreement and the Escrow Disbursing Agreement, the Director shall have received the following: 

 

	 	(i)	the executed Note; 

  

	 	(ii)	evidence of the liability and property insurance required by the Security Documents (on ACORD form 27); 

 

	 	(iii)	determination of prevailing wage by the Wage and Hour Bureau of the Department of Commerce of the State, if applicable; 

 

	 	(iv)	the duly executed Security Documents, Escrow Disbursing Agreement, Guaranty and all other Loan Documents; 

 

	 	(v)	a Certificate of Corporate Good Standing issued by the Secretary of State of the State for each of the Company and the Guarantor, dated within 10 days of the date of
this Agreement; 

  

	 	(vi)	certified copy of the resolutions of the governing board/body of each of the Company and the Guarantor authorizing execution, delivery and performance of the Loan
Documents to which such entity is a party; 

  

	 	(vii)	the UCC Financing Statement to evidence and perfect the security interests created by the Security Documents; 

 

	 	(viii)	certificates of incumbency as to each of the Company and the Guarantor; 

  

	 	(ix)	copies, certified by each of the Company and the Guarantor to be true, correct and complete, of the Governing Instruments of such entity; 

 

	 	(x)	an opinion of legal counsel to the Company and Guarantor which sets forth substantially the following: 

 

	 	(A)	that each of the Company and the Guarantor is a corporation duly incorporated, organized and validly existing under the laws of, and in good standing with, the State;

  
 16 

	 	(B)	that each of the Company and the Guarantor has full power and authority to own its properties and conduct its business and to execute and deliver the Loan Documents to
which it is a party; 

  

	 	(C)	that the execution, delivery and performance of the Loan Documents by the Company and the Guarantor to which each is a party have been duly authorized by all necessary
corporate action by such party; 

  

	 	(D)	that the execution and delivery of the Loan Documents by each of the Company and the Guarantor to which such party is a party, and the performance of such party’s
obligations thereunder, do not conflict with the Governing Instruments of such party, or, to the knowledge of such counsel, constitute a default under, conflict with or violate any judgment, decree, indenture, mortgage, deed of trust, lease,
guaranty, agreement or other instrument to which such party is a party or by which such party is bound, or, to the knowledge of such counsel, conflict with or violate any provisions of law, administrative regulation, or court order or consent
decree; 

  

	 	(E)	that the Loan Documents have been duly executed and delivered by the Company and the Guarantor and are valid and binding instruments, enforceable against such party in
accordance with their respective terms, except as such enforcement may be limited by bankruptcy, insolvency or other laws or equitable principles affecting the enforcement of creditor’s rights generally; 

 

	 	(F)	that the execution and delivery by each of the Company and the Guarantor of the Loan Documents to which it is a party and the performance of its obligations thereunder
neither is prohibited by, nor subjects such party to a fine, penalty or other similar sanction under, any statute or regulation of any Governmental Authority and such party has obtained any and all requisite governmental consents, permits, licenses
and approvals necessary for such party to enter into, execute and deliver the Loan Documents to which it is a party and to perform such party’s obligations thereunder; 

 

	 	(G)	that there are no actions, suits or proceedings, at law or in equity, or before or by any court, public board or body, pending or, to the knowledge of counsel,
threatened affecting either the Company or the Guarantor or the Project which, if adversely determined, would individually or in the aggregate materially impair the ability of such party to perform any of its obligations under the Loan Documents or
would materially adversely affect the financial condition of such party; and 

  
 17 

	 	(H)	The Security Agreement creates in favor of the Director as security for the Company’s obligations under the Loan Documents, a valid, good and enforceable security
interest in the Company’s rights in the Collateral to which Article 9 of the Ohio Commercial Code is applicable; and 

  

	 	(I)	The UCC Financing Statement is in proper form under the applicable laws of the State of Ohio to be accepted for filing by the Secretary of State of the State of Ohio.
Upon due recordation with the Secretary of State of Ohio, the UCC Financing Statement will perfect in favor of the Director a valid, good, and enforceable lien of record in that portion of the Collateral in which a security interest may be perfected
by filing an initial financing statement with the Secretary of State of Ohio under the Ohio Commercial Code, as security for the payment and performance of the Company’s obligations under the Loan Documents. 

 

	 	(xi)	copies of all licenses and permits required by any Governmental Authority in connection with the Project and the operation thereof; 

 

	 	(xii)	Notice of Commencement as required by Chapter 1311, Ohio Revised Code, if applicable; 

 

	 	(xiii)	evidence satisfactory to the Director that the Project Site is not located in a an area identified by the Federal Emergency Management Agency as an area having special
flood hazards, or if the Project Site is located in such an area, that appropriate flood insurance or other satisfactory measures have been taken to protect the Project Site and the Project from flood damage; 

 

	 	(xiv)	a copy of the Plans and Specifications, if requested by the Director; 

  

	 	(xv)	UCC security interest, judgment and tax lien searches regarding the Company from all appropriate jurisdictions; 

 

	 	(xvi)	landlord waivers; and 

  

	 	(xvii)	such other certifications, documents or opinions as the Director may reasonably request. 

(b) Disbursement of Funds from the Escrow Account. Subject to the terms hereof and the Escrow Disbursing Agreement, the
disbursement of Escrow Funds shall be made on each Escrow Disbursement Date, provided the affirmations set forth in subsection (d) below are true, accurate and complete and the Director shall have received the following on or before each such
Escrow Disbursement Date: 

  
 18 

	 	(i)	a Disbursement Request, duly completed and executed by the Company, indicating the nature of each Allowable Innovation Cost incurred, the amount thereof, that the
Required Equity Contribution has been paid from retained earnings and/or working capital of the Company and setting forth a date (which must be a Business Day) not less than 10 days nor more than 25 days from the date of the submission of the
Disbursement Request, upon which the disbursement is to be made; 

  

	 	(ii)	a Cost Certification; 

  

	 	(iii)	a written certification from the Company that certain technical milestones set forth in Schedule 1.2 attached hereto have been met with respect to the Project;

  

	 	(iv)	such other certifications, documents or opinions as the Director may reasonably request; and 

 

	 	(v)	in connection with the final Escrow Disbursement Date, the following additional items: 

 

	 	(1)	the items required by Section 3.5 hereof; 

  

	 	(2)	if applicable, certificate of compliance issued by the Wage and Hour Bureau of the Department of Commerce of the State, certifying as to full compliance with Chapter
4115, Ohio Revised Code; 

  

	 	(3)	Final Cost Certificate; 

  

	 	(4)	certificate of occupancy, if applicable; and 

  

	 	(5)	list of all contractors and subcontractors (names and addresses) who worked on the Project, if applicable. 

(c) If the items described in subsection 3.6(b) received by the Director are deemed by it to be satisfactory in form, substance and
execution and if the Director shall have approved the disbursement of Escrow Funds as set forth in the Disbursement Request, the Director shall instruct the Escrow Agent to disburse the appropriate portion of the Escrow Funds to the Company and in
the amounts shown on the Disbursement Request. 
 (d) Each Disbursement Request shall be deemed an affirmation by the Company
that (i) the undisbursed portion of the Escrow Funds, after the requested disbursement, together with the undisbursed portion of the Required Equity Contribution, will be sufficient to complete the Project, (ii) the Project Equipment which
is described in the Disbursement Request has been delivered and accepted by the Company, (iii) the representations and warranties of each of the Company and the 

  
 19 

 Guarantor set forth in the Loan Documents and the Loan Approval Documents to which it is a party remain true
and correct as of the date of the disbursement of Escrow Funds in accordance with such Disbursement Request, (iv) no Event of Default shall have occurred as of the date of the disbursement of Escrow Funds in accordance with such Disbursement
Request, (v) each item for which payment is requested hereunder is an Allowable Innovation Cost, properly payable out of the Escrow Funds in accordance with the terms and conditions of this Agreement and the other Loan Documents; (vi) none
of the items for which payment is requested had formed the basis for any payment heretofore made from the Escrow Funds; and (vii) each item for which payment is requested is necessary in connection with the Project. 

(e) Upon the giving of written notice by the Director to the Escrow Agent that no further disbursements of the Escrow Funds and/or
interest accrued on the Escrow Funds shall be made (whether due to the occurrence of an Event of Default under the Loan Documents or upon the occurrence of such other event permitting the Director to terminate disbursement as provided for herein),
the Escrow Agent shall not make any further disbursements of the Escrow Funds and/or such accrued interest until the Escrow Agent is notified in writing by the Director that either (i) such disbursements may resume, or (ii) the Escrow
Agent shall disburse all remaining Escrow Funds, together with all accrued interest thereon, to the Director. 

Section 3.7. Postponement of Escrow Disbursement Termination Date. At the written request of the Company setting forth
the reasons therefor and received at least 20 days prior to the Escrow Disbursement Termination Date, the Director may, but shall be under no obligation to, postpone the Escrow Disbursement Termination Date to a later date. No such postponement
shall be deemed to have been granted unless stated in a writing signed by the Director specifying the length of the extension given. If for any reason the Loan and the Escrow Funds shall not have been fully disbursed on or before the Escrow
Disbursement Termination Date or such subsequent date as the Director shall have specified in writing pursuant to the preceding sentence, the Director shall not have any obligation to approve or permit any further disbursement of proceeds of the
Loan to the Escrow Account nor disbursement of Escrow Funds from the Escrow Account to the Company. For purposes of this Section, time is of the essence. 
 Section 3.8. Payment of Costs; Indemnification. 
  

	 	(a)	The Company shall pay all costs incident to the Loan, including, but not limited to, recording fees, insurance fees, escrow fees and all costs and expenses incurred by
the Director. 

  

	 	(b)	The Company shall, at its sole cost and expense, defend, indemnify and hold the Director and any officials, employees, agents and representatives of the Director and
the State, its and their successors and assigns, harmless from and against, and shall reimburse the Director and any officials, employees, agents and representatives of the Director and the State, its and their successors and assigns for, any and
all loss, cost, claim, liability, damage, judgment, penalty, injunctive relief, action or cause of action arising in connection with or as the result of: 

  
 20 

	 	(i)	any past, present or future existence, use, handling, storage, transportation, manufacture, Release, threat of Release, or disposal of any Hazardous Substance in, on or
under the Project or the Project Site; 

  

	 	(ii)	the occurrence of any Environmental Activity in violation of any Environmental Requirement, or any failure of the Company or any operator of the Project or Project Site
to comply with all applicable Environmental Requirements relating to the Project or the Project Site or the Use of the Project or the Project Site; 

  

	 	(iii)	any investigation, inquiry, order, hearing, action or other proceeding by or before any Governmental Authority in connection with any Environmental Activity occurring
or allegedly occurring on or about the Project or the Project Site; 

  

	 	(iv)	any failure of any representation and/or warranty set forth herein or in any other Loan Document to be correct in all respects; 

 

	 	(v)	any failure of the Company or the Guarantor to perform any covenant set forth herein or in any other Loan Document to which it is a party; 

 

	 	(vi)	any claim, demand or cause of action, or any action or other proceedings, whether meritorious or not, brought or asserted against the Director and/or any officials,
employees, agents and representatives of the Director and the State, its and their successors and assigns, which directly or indirectly relates to, arises from or is based on any of the matters described in clauses (i) through (v) of this
Section 3.8(b) or any allegation of any such matters; or 

  

	 	(vii)	the execution and delivery of this Agreement or any other Loan Documents and the transactions contemplated thereby, and the preparation of documents relating to the
disbursement of the Loan, including all aforementioned costs and expenses, regardless of whether or not the disbursement of the Loan shall actually occur; and 

 

	 	(viii)	 the enforcement of this Agreement or the assertion by either of the Company or the Guarantor of any defense to its obligations hereunder. This
indemnity and hold harmless provision shall apply to all of clauses (i) through (viii) of this Section 3.8(b) whether such events, acts or omissions are foreseeable or unforeseeable, regardless of the source, the time of occurrence or
the time of discovery, and whether any of such matters arise before or after foreclosure of the Security Documents or other taking of title to all or any portion of the Project Site and/or the Project by the Director, its successors and/or assigns
(all of this preceding sentence hereinafter collectively referred to as a “Loss”). The foregoing indemnification against Loss includes, without limitation, indemnification against all costs in law or in equity of removal, response,

  
 21 

	 	
investigation, or remediation of any kind, and disposal of such Hazardous Substances, all costs of determining whether the Project or the Project Site is in compliance with, and of causing the
Project or the Project Site to be in compliance with, all applicable Environmental Requirements, all reasonable costs incurred to take precautions to protect against the Release of Hazardous Substances on, in, under or affecting the Project and the
Project Site, all reasonable costs associated with any Corrective Work, all reasonable costs associated with claims for damages to persons, property, or natural resources, any reasonable loss to the Director from the diminution in the value of the
Project or the Project Site, and the Director’s attorneys’ and consultants’ fees, court costs and expenses incurred in connection with any thereof. 

 

	 	(c)	The provisions of this Section 3.8 shall survive the termination of this Agreement. 

ARTICLE IV 

Additional Covenants and Agreements 
 Section 4.1. Employment Statement; Job Creation. The Company shall furnish to the Director upon request, but in any event not less frequently than concurrently with the annual financial
statements to be furnished pursuant to Section 4.3(e)(ii) hereof, throughout the term of the Loan a statement certifying (a) the number of employees of the Company employed on the Project as of the date of the Application; (b) the
number of employees of the Company currently employed on the Project; (c) the number of any and all employees of the Company laid off or terminated from the Project since the Closing Date; (d) the current number of women and minority
employees of the Company employed on the Project; and (e) such other employment, economic and statistical data concerning the Company as may be reasonably requested by the Director. 

The Company has represented that the Loan will permit the Company to retain seven (7) not at-risk full-time jobs, secure three
(3) at-risk full-time jobs and create an estimated fifteen (15) jobs and employment opportunities in the City during the three-year period after the Completion Date. If the Company fails, for reasons other than Market Conditions, to retain
and create an aggregate of at least twenty-five (25) such jobs and employment opportunities, the interest rate on the outstanding balance of the Loan shall, at the option of the Director, increase to ten percent (10%) per annum.

 Section 4.2. Public Offering. The Loan and all other amounts payable by the Company under this Agreement
and the other Loan Documents shall be due and payable in full if the Company shall undertake and complete an initial public offering of its securities. 
 Section 4.3. Affirmative Covenants of the Company. Throughout the term of this Agreement, the Company shall: 

 

	 	(a)	 Taxes and Assessments. Pay and discharge promptly, or cause to be paid and discharged promptly, when due and payable, all taxes, assessments and
governmental charges, levies or claims imposed upon the Company or the Guarantor, such party’s 

  
 22 

	 	
income or any of such party’s property, or upon any part thereof, as well as all claims of any kind (including claims for labor, materials and supplies) which, if unpaid, might by law become
a lien or charge upon such party’s property. 

 Notwithstanding the preceding paragraph, the Company or the
Guarantor may, at such party’s expense and after prior notice to the Director, by appropriate proceedings diligently prosecuted, contest in good faith the validity or amount of any such taxes, assessments, governmental charges, levies and
claims and during the period of contest, and after notice to the Director, may permit the items so contested to remain unpaid, provided that adequate reserves or other appropriate provisions, if any, as shall be required by generally accepted
accounting principles shall have been made by such party. However, if at any time the Director shall notify the Company that, in the opinion of legal counsel satisfactory to the Director, by nonpayment of any such items the lien created by the
Security Documents as to any part of the Project, the Project Site and/or the Collateral will be materially affected or the Project, the Project Site and/or the Collateral or any part thereof will be subject to imminent loss or forfeiture, the
Company shall promptly pay such taxes, assessments, charges, levies or claims. 
  

	 	(b)	Maintain Existence. Do or cause to be done all things necessary to preserve and keep in full force and effect its existence and its material rights and
franchises and the Guarantor’s existence. 

  

	 	(c)	Maintain Property. Maintain and keep, or cause to be maintained and kept, the property of each of the Company and the Guarantor in good repair, working order and
condition, and from time to time make all repairs, renewals and replacements which, in the opinion of the Company or the Guarantor, are necessary and proper so that the business carried on in connection therewith may be properly and advantageously
conducted at all times; provided, however, subject to the terms of the Security Documents, that nothing in this subsection (c) shall prevent the Company from selling or otherwise disposing of any of its property whenever, in the good
faith judgment of the Company, such property is obsolete, worn out, without economic value or unnecessary for the conduct of the business of the Company. 

  

	 	(d)	 Maintain Insurance. Keep all of its insurable property insured against loss or damage by fire and other risks, maintain public liability
insurance against claims for personal injury, death, or property damage suffered by others upon, in or about any premises occupied by the Company; and maintain all such worker’s compensation or similar insurance as may be required under the
laws of any state or jurisdiction in which it may be engaged in business. All insurance for which provision has been made in this subsection (d) shall be maintained against such risks and in at least such amounts as set forth in the Security
Documents, and all insurance herein provided for shall be effected and maintained in force under a policy or policies issued by insurers of recognized responsibility, except that it may effect worker’s compensation or similar insurance in
respect of operations in any state or other jurisdiction either through an 

  
 23 

	 	
insurance fund operated by such state or other jurisdiction or by causing to be maintained a system or systems of self-insurance which is in accordance with applicable law.

  

	 	(e)	Furnish Information. Furnish to the Director: 

  

	 	(i)	Quarterly Reports. Within 30 days after the end of each quarterly period of each fiscal year of the Company, a copy of its prepared consolidated financial
statements, including the consolidated balance sheet of the Company and the Guarantor as at the end of such quarterly period, together with related statements of income, retained earnings and cash flows for such quarterly period and for the period
from the beginning of such fiscal year to the end of such quarter, setting forth in comparative form the corresponding figures as at the end of or for the corresponding quarter of the previous fiscal year, all in reasonable detail, prepared in
accordance with generally accepted accounting principles applied on a consistent basis, subject to usual year-end audit adjustments. 

  

	 	(ii)	Annual Reports. Within 120 days after the end of each fiscal year of the Company, a copy of its reviewed consolidated financial statements, including the
consolidated balance sheet of the Company and the Guarantor as at the end of such fiscal year, together with related statements of income, retained earnings and cash flows for such fiscal year, setting forth in comparative form the corresponding
figures as at the end of or for the previous fiscal year, all in reasonable detail and all examined by and accompanied by a review or opinion of its independent certified public accountants to the effect that such consolidated financial statements
were prepared in accordance with the generally accepted accounting principles consistently applied, and present fairly the Company’s and Guarantor’s financial position at the close of such periods and the results of its operations for such
periods. 

  

	 	(iii)	 Certificate: No Default. With each of the financial reports required to be furnished under this Section, a certificate of the Company’s
chief executive officer or chief financial officer stating that (a) no Event of Default has occurred and is continuing and no event or circumstance which would constitute an Event of Default, but for the requirement that notice be given, time
elapse or otherwise, has occurred and is continuing, or, if such an Event of Default or such event or circumstance has occurred and is continuing, a statement as to the nature thereof and the action which the Company proposes to take with respect
thereto, and that (b) no action, suit or proceeding by either the Company or the Guarantor or against either party at law or in equity, or before any governmental instrumentality or agency, is pending or threatened, which, if adversely
determined, would materially impair the right or ability of the Company to carry on the business which is contemplated in connection with the Project, or would materially impair the right or ability of

  
 24 

	 	
such party to perform the transactions contemplated by this Agreement, the other Loan Documents to which it is a party or would materially and adversely affect such party’s business,
operations, properties, assets or condition, all as of the date of such certificate, except as disclosed in such certificate. 

  

	 	(iv)	Other Information. Such other information respecting the business, properties or the condition or operations, financial or otherwise, of the Company as the
Director may reasonably request. 

  

	 	(f)	Deliver Notice. Forthwith upon learning of any of the following, deliver written notice thereof to the Director, describing the same and the steps being taken by
the Company with respect thereto: 

  

	 	(i)	the occurrence of an Event of Default or an event or circumstance which would constitute an Event of Default, but for the requirement that notice be given, elapse of
time or otherwise; or 

  

	 	(ii)	any action, suit or proceeding by it or against it at law or in equity, or before any governmental instrumentality or agency, instituted or threatened which, if
adversely determined, would materially impair the right or ability of the Company to carry on the business which is contemplated in connection with the Project or would materially impair the right or ability of the Company to perform the
transactions contemplated by the Loan Documents, or would materially and adversely affect its business, operations, properties, assets or condition; or 

  

	 	(iii)	the occurrence of a Reportable Event under, or the institution of steps by the Company to withdraw from, or the institution of any steps to terminate, any Plan as to
which the Company may have liability; or 

  

	 	(iv)	any material communication affecting the Project, the Project Site or the DCB Loan Documents, and the Company will promptly respond fully to any inquiry of the Director
made with respect thereto. 

  

	 	(g)	Inspection Rights. Permit the Director, or any agents or representatives thereof, to examine and make copies of and abstract from the records and books of
account of, and visit the properties of, the Company and discuss the general business affairs of the Company and the Guarantor with any of its officers. 

  

	 	(h)	Purchases. Use its best efforts to purchase goods and services from persons and business entities located in this State. 

 

	 	(i)	Environmental Matters. 

  
 25 

	 	(i)	Comply with all Environmental Requirements relating to the Project and the Project Site or to the Use of the Project and the Project Site. 

 

	 	(ii)	Notify the Director, within 15 days, if it commences to contest the assertion of any Governmental Authority or any third party of any obligation or liability affecting
it or the Project, the Project Site or any part thereof regarding an Environmental Activity or an Environmental Requirement, and, if requested by the Director, shall give the Director monthly reports thereafter during the period of such contest. If
the Company contests the assertion of any such obligation or liability, such contest shall be diligently prosecuted until a final judgment is obtained. If such contest is unsuccessful, the Company shall promptly commence Corrective Work. If the
Company is not contesting the assertion of any such obligation or liability, the Company shall commence Corrective Work promptly after the Company obtains actual knowledge of any Hazardous Substances on, in or affecting the Project or the Project
Site. 

  

	 	(iii)	Notify the Director prior to the commencement of any Corrective Work, and shall promptly submit to the Director, for the Director’s review, reasonably detailed
plans for any such Corrective Work. If the Director, based upon the proper advice and judgment of the Director’s experts, reasonably rejects such plans, the Company shall promptly submit revised plans to the Director. The Director shall have no
liability to the Company or any third party for accepting or rejecting such plans. After the commencement of Corrective Work, the Company shall, if requested by the Director, give the Director monthly reports during the performance of such
Corrective Work. 

  

	 	(j)	Operations; Chief Executive Office. Maintain its primary operations and chief executive office in the State during the term of the Loan; if such operations are
not so maintained, the Loan and all other amounts payable by the Company under the Agreement and Loan Documents shall be due and payable in full. Prior to any change in the location of the Company’s primary operations and chief executive
office, Company shall obtain the written consent of the Director, which consent may be given or withheld in the Director’s sole discretion, and shall deliver to the Director a landlord waiver in form and substance substantially similar to the
Landlord Waiver delivered on the Closing Date or a mortgage in form and substance satisfactory to the Director, as applicable, and any other documents or agreements as Director requests and deems necessary and advisable in its discretion to preserve
and protect its security interests granted under the Loan Documents and to exercise and enforce its rights and remedies thereunder. 

 Section 4.4. Negative Covenants of the Company. Throughout the term of this Agreement, the Company and its ERISA Affiliates and the Guarantor shall not: 

  
 26 

	 	(a)	Maintain Existence. Sell, transfer or otherwise dispose of all, or substantially all, of its assets, consolidate with or merge into any other entity, or permit
one or more entities to consolidate with or merge into it; provided, however, that the Company may, without violating the agreement contained in this subsection (a), consolidate with or merge into another entity, or permit one or more other
entities to consolidate with or merge into it, or sell, transfer or otherwise dispose of all, or substantially all, of its assets and thereafter dissolve if: (i) the prior written consent of the Director is obtained; (ii) the surviving,
resulting or transferee entity, as the case may be, assumes in writing all of the obligations of the Company hereunder (if such surviving, resulting or transferee entity is other than the Company); and (iii) the surviving, resulting or
transferee entity, as the case may be, is an entity duly organized and validly existing under the laws of the State or duly qualified to do business therein, and has a net worth of not less than that of the Company immediately prior to such
disposition, consolidation or merger, transfer or change of form. 

  

	 	(b)	ERISA. (i) Voluntarily terminate, or file a notice of intent to terminate, any Plan maintained for employees of the Company or any ERISA Affiliate and
covered by Title IV of ERISA; (ii) adopt any amendment to a Plan that is treated as a termination under Section 4041 or 4041A of ERISA; (iii) withdraw from a Plan subject to Section 4063 of ERISA during a plan year in which it
was a substantial employer (as defined in Section 4001(a)(2) of ERISA) or have a cessation of operations that is treated as such a withdrawal under Section 4062(e) of ERISA; (iv) enter into any Prohibited Transaction involving any
Plan; (v) cause the occurrence of any Reportable Event for which the PBGC has not waived the requirement of notice; (vi) cause a complete or partial withdrawal from a Multiemployer Plan or receive notification that a Multiemployer Plan is
in reorganization; (vii) allow or suffer to exist commencement of proceedings by the PBGC to terminate a Plan or Multiemployer Plan; (viii) allow to exist an event or condition that constitutes grounds under Section 4042 of ERISA for
the termination of, or the appointment of a trustee to administer, any Plan or Multiemployer Plan; (ix) cause the imposition of any liability under Title TV of ERISA on the Company or any ERISA Affiliate, other than for PBGC premiums due but
not delinquent under Section 4007 of ERISA; or (x) allow or suffer to exist any other event or condition that results in any material liability of the Company or any ERISA Affiliate to the PBGC. 

 

	 	(c)	Agreements. Enter into any agreement containing any provision which would be violated or breached by the performance of its obligations hereunder or under any
instrument or document delivered or to be delivered by it hereunder or in connection herewith. 

  

	 	(d)	Assignment or Lease. In whole or in part, assign this Agreement or lease or grant the right to occupy or use the Project to others, without the prior written
consent of the Director. 

  

	 	(e)	Encumbered Assets. Pledge, assign, hypothecate or in any manner encumber any of its assets excepting, however, the assets of the Company pursuant to the Loan
Documents and the DCB Loan Documents. 

  
 27 

	 	(f)	Removal of Assets. Remove, transfer or transport any of the Company’s assets from the Project Site other than the operation of motor vehicles or the
shipment of goods in the ordinary course of business. 

  

	 	(g)	Environmental Matters. Produce, treat, store, generate, dispose of or Release any Hazardous Substance in violation of any Environmental Requirement.

  

	 	(h)	Suspension of Operation. Suspend or discontinue operation of its business. 

 

	 	(i)	Stock Transfers. Issue, transfer, sell, or cause to be issued, transferred or sold, any shares of its capital stock. 

 

	 	(j)	Leasebacks. Enter into any arrangements, directly or indirectly, with any person whereby the Company shall sell or transfer any property, whether now owned or
hereafter acquired, used or useful in the Company’s business, in connection with the rental or lease or the property so sold or transferred or of other property which the Company intends to use for substantially the same purpose or purposes as
the property so sold or transferred. 

  

	 	(k)	Change of Business. Enter into any business which is substantially different from that presently conducted by it without the written consent of the Director.

  

	 	(l)	Zoning Changes. Initiate, approve or acquiesce to any change in or modification to the zoning in effect for the Project Site or any portion thereof without the
prior written consent of the Director. The Company shall promptly notify the Director of any such proposed change or modification stating in reasonable detail the anticipated or proposed change and the manner in which such change would affect the
Company’s use and enjoyment of the Project Site, or any part thereof. The Director shall have the right to participate in any and all proceedings, judicial, administrative or otherwise, with respect to or in any way affecting the Project Site,
including, without limitation, zoning, environmental and other matters. 

  

	 	(m)	Modification of DCB Loan Documents. Enter into any modification, amendment or alteration of any DCB Loan Document to which it is a party which changes the amount
of the DCB Loan or the payment schedule for the DCB Loan or which materially affects the rights and interests of the Director as determined by the Director in its sole discretion without the prior written consent of the Director.

  

	 	(n)	 Shareholder Loans. The Company shall not receive, incur, or have outstanding, any loan from any officer, director or holder of 5% or more of the
Company’s equity securities (present or future) (a “Shareholder Loan”), unless such Shareholder Loan is subordinated to the Loan and all obligations owing to Director pursuant to the Loan Documents. The Company shall promptly obtain
and deliver to Director an executed subordination agreement relating to any such Shareholder Loan in form and content 

  
 28 

	 	
satisfactory to Director (a “Subordination Agreement”). The Company shall not pay, or otherwise make a distribution as satisfaction for, interest on any Shareholder Loan except to the
extent as may be permitted under the Subordination Agreement applicable thereto. Payments of principal on Shareholder Loans shall not be made except to the extent as may be permitted under the Subordination Agreement applicable thereto.

 ARTICLE V 
 Events of Default and Remedies; Termination 

Section 5.1. Events of Default. Each of the following shall be an “Event of Default”: 

 

	 	(a)	the Company shall fail to pay when due any amount payable pursuant to this Agreement or under the Note; or 

 

	 	(b)	failure by either the Company or Guarantor to pay when due any other amounts to be so paid to the Director under this Agreement or any Loan Document; or

  

	 	(c)	failure by the Company to observe and perform any term, covenant or agreement contained in Section 4.1 hereof; or 

 

	 	(d)	the Company or the Guarantor shall fail to observe and perform any agreement, covenant, term or condition applicable to it contained in this Agreement (other than as
required pursuant to subsections (a), (b) and (c) above), and such failure continues for a period of 30 days after the Company has knowledge thereof; provided, however, that such 30 day cure period shall not apply to (i) any
failure which in the good faith opinion of the Director is incapable of cure, (ii) any failure which has previously occurred, or (iii) any failure to maintain and keep in effect any insurance required by the Loan Documents; or

  

	 	(e)	any representation or warranty made by either of the Company or the Guarantor (or any of such party’s officers) herein or in any other Loan Documents or Loan
Approval Documents or in connection herewith or therewith shall prove to have been incorrect in any material respect when made; or 

  

	 	(f)	 the Company shall fail to pay any indebtedness of the Company, or any interest or premium thereon, when due (whether by scheduled maturity, required
prepayment, by acceleration, on demand or otherwise), including, without limitation, the DCB Loan Documents, and such failure shall continue after the applicable grace period, if any, specified in the agreement or instrument relating to such
indebtedness; or any other default under any agreement or instrument relating to any such indebtedness, including, without limitation, the DCB Loan Documents, or any other event, shall occur and shall continue after the applicable grace period, if
any, specified in such 

  
 29 

	 	
agreement or instrument, if the effect of such default or event is to accelerate, or to permit the acceleration of, the maturity of such indebtedness; or any such indebtedness shall be declared
to be due and payable, or required to be prepaid (other than by a regularly scheduled required prepayment), prior to the stated maturity thereof; or 

  

	 	(g)	the Company or the Guarantor commences a voluntary case concerning it under Title 11 of the United States Code entitled “Bankruptcy” as now or hereafter in
effect, or any successor thereto (the “Bankruptcy Code”); or an involuntary case is commenced against either the Company or the Guarantor under the Bankruptcy Code and relief is ordered against such party, or the petition is controverted
but is not dismissed within 60 days after the commencement of the case; or either the Company or the Guarantor is not generally paying its debts as such debts become due; or a custodian (as defined in the Bankruptcy Code) is appointed for, or takes
charge of, all or substantially all of the property of either the Company or Guarantor; or either the Company or the Guarantor commences any other proceeding under any reorganization, arrangement, readjustment of debt, relief of debtors,
dissolution, insolvency or liquidation or similar law of any jurisdiction whether now or hereafter in effect; or there is commenced against such party any such proceeding which remains undismissed for a period of 60 days; or either the Company or
the Guarantor is adjudicated insolvent or bankrupt; or either the Company or the Guarantor fails to controvert in a timely manner any such case under the Bankruptcy Code or any such proceeding or any order of relief or other order approving any such
case or proceeding or in the appointment of any custodian or the like of or for it or any substantial part of its property or suffers any such appointment to continue undischarged or unstayed for a period of 60 days; or either the Company or the
Guarantor makes a general assignment for the benefit of creditors; or any action is taken by either the Company or the Guarantor for the purpose of effecting any of the foregoing; or a receiver or trustee or any other officer or representative of
the court or of creditors, or any court, governmental officer or agency, shall under color of legal authority, take and hold possession of any substantial part of the property or assets of either the Company or the Guarantor for a period in excess
of 60 days; or 

  

	 	(h)	a judgment or order for the payment of money in excess of One Hundred Thousand Dollars ($100,000.00) shall be rendered against either the Company or the Guarantor and
either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or order or (ii) there shall be any period of 30 consecutive days during which a stay of enforcement of such judgment or order, by reason of a
pending appeal or otherwise, shall not be in effect; or 

  

	 	(i)	the Company fails to meet its minimum funding requirements under Section 301 et seq. of ERISA, with respect to any of its Plans; or

  
 30 

	 	(j)	any default in the observance or performance of any other covenant, condition or provision (other than set forth above) under any other Loan Document or the DCB Loan
Documents shall have occurred and be continuing; or 

  

	 	(k)	the Project is not completed by the Completion Date. 

 Section 5.2. Remedies on Default. Whenever an Event of Default shall have occurred and be continuing, any one or more of the following remedial steps may be taken: 

 

	 	(a)	if none of the proceeds of the Loan has been disbursed into the Escrow Account, the Director may terminate any and all of the Director’s obligations under this
Agreement and the Commitment; 

  

	 	(b)	if the Loan has not been fully disbursed into the Escrow Account, the Director may terminate any and all of the Director’s obligations under this Agreement and the
Commitment to make any further advance of proceeds of the Loan into the Escrow Account; 

  

	 	(c)	if the Escrow Funds have not been fully disbursed from the Escrow Account, the Director may terminate any and all of the Director’s obligations under this
Agreement and the Commitment, to approve or permit any further disbursements from the Escrow Account and at the request of the Director, all amounts then held in the Escrow Account shall be disbursed to the Director; 

 

	 	(d)	the Director may declare all payments under the Note to be immediately due and payable, whereupon the same shall become immediately due and payable;

  

	 	(e)	the Director may exercise any or all or any combination of the remedies specified in any Loan Document; 

 

	 	(f)	the Director may have access to, inspect, examine and make copies of the books and records, accounts and financial data of the Company and the Guarantor; or

  

	 	(g)	the Director may pursue all remedies now or hereafter existing at law or in equity to collect all amounts then due and thereafter to become due under this Agreement,
the Security Documents, the Note, the Guaranty or any other Loan Documents, or to enforce the performance and observance of any other obligation or agreement of the Company under the Loan Documents. 

Section 5.3. No Remedy Exclusive. No remedy conferred upon or reserved to the Director by this Agreement is intended
to be exclusive of any other available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy given under this Agreement, each other Loan Document, or now or hereafter existing at law,
in equity or by statute. No delay or omission to exercise any right or power accruing upon any default shall impair any such right or power or shall be construed to be a waiver thereof, but any such right and power

  
 31 

 
may be exercised from time to time and as often as may be deemed expedient. In order to entitle the Director to exercise any remedy reserved to the Director in this Article, it shall not be
necessary to give any notice, other than such notice as may be expressly provided for herein or required by law. 

Section 5.4. Agreement to Pay Expenses and Attorneys’ Fees. If an Event of Default shall occur and the Director
shall incur expenses, including reasonable attorney’s fees, in connection with the enforcement of this Agreement or any other Loan Document, or the collection of sums due thereunder, the Company shall reimburse the Director for the expenses so
incurred upon demand. If any such expenses are not so reimbursed, the amount thereof, together with interest thereon from the date of demand for payment at the Interest Rate for Advances (as defined in the Security Documents), shall constitute
additional indebtedness secured by the Security Documents, and in any action brought to collect such indebtedness or to foreclose or enforce the Security Documents or the Guaranty, the Director shall be entitled to seek the recovery of such expenses
in such action. 
 Section 5.5. No Waiver. No failure by the Director to insist upon the strict performance
by the Company of any provision hereof shall constitute a waiver of the Director’s right to strict performance and no express waiver shall be deemed to apply to any other existing or subsequent right to remedy the failure by the Company to
observe or comply with any provision hereof. 
 ARTICLE VI 

Miscellaneous 
 Section 6.1. Term of Agreement. This Agreement shall be and remain in full force and effect from the date of its delivery until (a) the termination of this Agreement pursuant to
Section 5.2(a)-(c) hereof or (b) such time as the Loan shall have been fully repaid and all other sums payable by the Company under this Agreement, the Security Documents, the Note and the other Loan Documents shall have been paid.

 Section 6.2. Notices. (a) All notices, certificates, requests or other communications hereunder shall
be in writing and shall be delivered by hand or overnight courier service, mailed by certified or registered mail, postage prepaid, or sent by telecopier. The Company or the Director may, by notice given hereunder, change a Notice Address or
designate any further addresses to which subsequent notices, certificates, requests or other communications shall be sent. Notices sent by hand or overnight courier service, or mailed by certified or registered mail, shall be deemed to have been
given when received; notices sent by telecopier shall be deemed to have been given when sent (except that, if not given during normal business hours for the recipient, shall be deemed to have been given at the opening of business on the next
Business Day for the recipient). Notices delivered through electronic communications to the extent provided in Section 6.2(b), shall be effective as provided in such Section. 

(b) Notices and other communications hereunder may be delivered or furnished by electronic communication (including e-mail and Internet
or intranet websites) pursuant to procedures approved by the Director. The Director or the Company may, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to

  
 32 

 
procedures approved by it; provided that approval of such procedures may be limited to particular notices or communications. Unless the Director otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other
written acknowledgement); provided that if such notice or other communication is not sent during the normal business hours of the recipient, such notice or communication shall be deemed to have been sent at the opening of business on the next
Business Day for the recipient, and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause
(i) of notification that such notice or communication is available and identifying the website address therefor. 

Section 6.3. Extent of Covenants of the Director; No Personal Liability. All covenants, obligations and agreements of
the Director contained in this Agreement and all other Loan Documents shall be effective to the extent authorized and permitted by applicable law. No such covenant, obligation or agreement shall be deemed to be a covenant, obligation or agreement of
any present or future Director in other than such Director’s official capacity acting pursuant to the Act. 

Section 6.4. Binding Effect. This Agreement shall inure to the benefit of and shall be binding in accordance with its
terms upon the Director, the Company and their respective successors and assigns; provided, however, the Company may not assign this Agreement or any of the Loan Documents without the prior written consent of the Director. 

Section 6.5. Amendments and Supplements. This Agreement may not be amended or supplemented except by an instrument in
writing executed by the Director and the Company. 
 Section 6.6. Execution Counterparts. This Agreement may
be executed in any number of counterparts, each of which shall be regarded as an original and all of which shall constitute but one and the same instrument. 
 Section 6.7. Severability. If any provision of this Agreement, or any covenant, obligation or agreement contained herein, is determined by a court to be invalid or unenforceable, such
determination shall not affect any other provision, covenant, obligation or agreement, each of which shall be construed and enforced as if such invalid or unenforceable provision were not contained herein. Such invalidity or unenforceability shall
not affect any valid and enforceable application thereof, and each such provision, covenant, obligation or agreement, shall be deemed to be effective, operative, made, entered into or taken in the manner and to the full extent permitted by law.

 Section 6.8. Captions; Entire Agreement. The captions and headings in this Agreement shall be solely for
convenience of reference and shall in no way define, limit or describe the scope or intent of any provisions or sections of this Agreement. All exhibits and schedules to this Agreement shall be annexed hereto and shall be deemed to be part of this
Agreement. This Agreement and the exhibits and schedules attached hereto and the Loan Documents embody the entire agreement and understanding between the Director and the Company and supersede all prior agreements and understandings relating to the
subject matter hereof. 

  
 33 

 Section 6.9. Interpretation. This Agreement shall be deemed to have been
prepared jointly by the parties hereto and any uncertainty or ambiguity existing herein shall not be interpreted against any party but shall be interpreted according to the rules for the interpretation of arm’s length agreements. 

Section 6.10 WAIVER OF JURY TRIAL. THE COMPANY AND THE DIRECTOR, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO
CONSULT WITH COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS LOAN AGREEMENT, THE NOTE, THE SECURITY DOCUMENTS, OR ANY RELATED INSTRUMENT
OR AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREBY, OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF ANY OF THEM. THIS WAIVER SHALL NOT IN ANY WAY AFFECT THE DIRECTOR’S ABILITY TO PURSUE REMEDIES
PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED IN THE NOTE, IN ANY LOAN DOCUMENT OR ANY RELATED INSTRUMENT OR AGREEMENT. NEITHER THE COMPANY NOR THE DIRECTOR SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY ACTION
IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY THE COMPANY OR THE DIRECTOR EXCEPT BY A
WRITTEN INSTRUMENT EXECUTED BY BOTH OF THEM. 
 Section 6.11. Governing Law. This Agreement shall be deemed
to be a contract made under the laws of the State and for all purposes shall be governed by and construed in accordance with the laws of the State. 

  
 34 

 IN WITNESS WHEREOF, this Agreement has been executed and delivered as of the date
hereinbefore written. 
  

			
	DIRECTOR OF DEVELOPMENT, STATE OF OHIO
		
	By:	 	/s/    Candace M. Jones        
		 	Candace M. Jones
	Title:	 	Chief Legal Counsel and Ethics Officer

  

			
	 INTELLINETICS, INC.,

an Ohio corporation

		
	By:	 	/s/    Matthew L. Chretien        
	Title:	 	President

  

			
	 And as party to this agreement with respect to
 Section 4.4 and Article 5:

	
	 THE AVATAR GROUP, INC.,
 an Ohio corporation

		
	By:	 	/s/    Matthew L. Chretien        
	Title:	 	Vice President

  
 35 

 EXHIBIT A 
 (to Loan Agreement between the Director of Development of the State of Ohio 
 and
Intellinetics, Inc., July 17, 2009) 
 Form of Note 

 COGNOVIT PROMISSORY NOTE 

 

			
	$1,012,500	  	July         , 2009

 For value received, Intellinetics, Inc., an Ohio corporation (the
“Company”), promises to pay to the order of the Director of Development of the State of Ohio (the “Director”), at Strategic Business Investment Division, 77 South High Street, 28th Floor, P.O. Box 1001, Columbus, Ohio 43216-1001, or at such other
address as may be designated in writing by the Director, the principal sum of One Million Twelve Thousand Five Hundred Dollars ($1,012,500), or such amount thereof as shall be disbursed to the Company, with interest on the amount of principal from
time to time outstanding from the first Escrow Funding Date as specified under and defined in the Loan Agreement between the Director and the Company dated as of July 17, 2009 (the “Loan Agreement”), at the rate of six percent
(6%) per annum until paid, subject to adjustment as set forth in the Loan Agreement or herein. Interest on this Note shall be paid in monthly installments, which shall be due and payable on the first day of each calendar month commencing on the
first day of                 2010 (the “First Interest Payment Date”) and such amount shall include interest accrued hereon from the Escrow
Funding Date to the First Interest Payment Date. The principal of this Note shall be paid in forty-eight (48) consecutive monthly installments of
                              ($         
   ) each plus interest thereon, which shall be due and payable on the first day of each calendar month commencing on the first day of
                    2011 (the “First Installment Date”) and ending
on                         2015 (the “Last Installment Date”) and the amount of the installment payable on the
Last Installment Date shall be equal to the balance of the principal sum outstanding, together with interest accrued thereon and yet unpaid. In addition, the Company promises to pay to the order of the Director a monthly service fee equal to
one-twelfth (1/12) of one percent (1.0%) of the principal balance outstanding from time to time under this Note (the “Service Fee”), and such Service Fee shall be due and payable on the first day of each calendar month commencing
on the first day of the second month after the first Escrow Funding Date and continuing each following month until and including the Last Installment Date. 
 In addition to all other payments required under hereunder, upon maturity of the Loan (as defined in the Loan Agreement) whether at scheduled maturity, by acceleration or otherwise, the Company shall pay
to the Director a loan participation fee equal to 10% of the dollar amount of the Loan actually funded; provided, however, if the Loan is prepaid in full prior to Last Installment Date, the loan participation fee shall be paid to the Director at the
time of such prepayment. 
 This Note does not of itself constitute a commitment by the Director to make any disbursement of the
Loan (as defined in the Loan Agreement) to the Company. The conditions for making such a disbursement are set forth in the Loan Agreement. The disbursements made by the Director to the Company shall not exceed the face amount of this Note and the
total amount of such disbursement is limited by and subject to the conditions for making disbursement of the Loan as set forth in the Loan Agreement. 

 The annual rate of interest stated herein shall apply to a 360-day period, and amounts of
interest due hereunder shall be computed upon the basis of 30-day months. Installments of principal, interest and monthly service fee shall be applied first to monthly service fee, then interest as provided herein and the balance to principal due
hereunder. 
 The Company may prepay all or any portion of the principal sum hereof at any time without penalty. All such
prepayments shall be applied to the payment of the principal installments due hereon in the inverse order of their maturity, and shall be accompanied by the payment of accrued interest and monthly service fee on the amount of the prepayment to the
date thereof. 
 The payment of this Note and all interest and monthly service fees hereon is secured by a Security Agreement,
Intercreditor Agreement, Guaranty of Payment, and UCC Financing Statements (collectively, the “Security Documents”). The covenants, conditions and agreements contained in the Security Documents and the Loan Agreement are hereby made a part
of this Note. 
 The Company, each endorser and any other party liable on this Note severally waives demand, presentment, notice
of dishonor and protest. 
 If default be made in the payment of any installment of principal, interest and/or monthly service
fee under this Note when any such payment shall have become due and payable, or if an “Event of Default,” as defined in the Loan Agreement or the Security Documents, shall have occurred and be subsisting, then, at the option of the
Director, the entire principal sum payable hereunder and all interest and monthly service fees accrued thereon shall become due and payable at once, without demand or notice. 
 To the extent permitted by law, upon the occurrence of an Event of Default and until such time such Event of Default shall have been cured or waived, the rate of interest under this Note and on any
obligation of the Company under the Loan Documents shall be increased to ten percent (10%) per annum. 
 THE COMPANY AND
THE DIRECTOR, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, KNOWINGLY, VOLUNTARILY AND INTENTIONALLY WAIVE ANY RIGHT EITHER OF THEM MAY HAVE TO A TRIAL BY JURY IN ANY LITIGATION BASED UPON OR ARISING OUT OF THIS NOTE, THE
LOAN AGREEMENT, THE SECURITY DOCUMENTS, OR ANY RELATED INSTRUMENT OR AGREEMENT, OR ANY OF THE TRANSACTIONS CONTEMPLATED THEREBY, OR ANY COURSE OF CONDUCT, DEALING, STATEMENTS (WHETHER ORAL OR WRITTEN), OR ACTIONS OF EITHER OF THEM. THIS WAIVER SHALL
NOT IN ANY WAY AFFECT THE DIRECTOR’S ABILITY TO PURSUE REMEDIES PURSUANT TO ANY CONFESSION OF JUDGMENT OR COGNOVIT PROVISION CONTAINED HEREIN, IN THE LOAN AGREEMENT, THE SECURITY DOCUMENTS OR ANY RELATED INSTRUMENT OR AGREEMENT. NEITHER THE
COMPANY NOR THE DIRECTOR SHALL SEEK TO CONSOLIDATE, BY COUNTERCLAIM OR OTHERWISE, ANY ACTION IN WHICH A JURY TRIAL HAS BEEN WAIVED WITH ANY OTHER ACTION IN WHICH A JURY TRIAL CANNOT BE OR HAS NOT BEEN WAIVED. THESE PROVISIONS SHALL NOT BE

  
 2 

 
DEEMED TO HAVE BEEN MODIFIED IN ANY RESPECT OR RELINQUISHED BY THE COMPANY OR THE DIRECTOR EXCEPT BY A WRITTEN INSTRUMENT EXECUTED BY BOTH OF THEM. 

The Company hereby irrevocably authorizes any attorney-at-law, including any attorney-at-law employed or retained by the Director, to
appear for it in any action on this Note at any time after the same becomes due as herein provided, in any court of record situated in Franklin County, Ohio (which the Company acknowledges to be the place where this Note was signed), or in the
county where the Company then resides or can be found, to waive the issuing and service of process, and confess a judgment in favor of the Director or other holder of this Note against the Company for the amount that may then be due, with interest
at the rate provided for herein, together with the costs of suit, and to waive and release all errors in said proceedings and the right to appeal from the judgment rendered. The Company consents to the jurisdiction and venue of such court. The
Company waives any conflict of interest that any attorney-at-law employed or retained by the Director may have in confessing judgment hereunder and consents to the payment of a legal fee to any attorney-at-law confessing judgment hereunder.

 This Note was executed in Hilliard, Ohio, and shall be construed in accordance with the laws of Ohio. 

 

WARNING — BY SIGNING THIS PAPER YOU GIVE UP YOUR RIGHT TO NOTICE AND COURT TRIAL. IF YOU DO NOT PAY ON TIME A
COURT JUDGMENT MAY BE TAKEN AGAINST YOU WITHOUT YOUR PRIOR KNOWLEDGE AND THE POWERS OF A COURT CAN BE USED TO COLLECT FROM YOU REGARDLESS OF ANY CLAIMS YOU MAY HAVE AGAINST THE CREDITOR WHETHER FOR RETURNED GOODS, FAULTY GOODS, FAILURE ON HIS PART
TO COMPLY WITH THE AGREEMENT, OR ANY OTHER CAUSE. 

  

			
	 INTELLINETICS, INC.,

an Ohio corporation

		
	By:	 	 
	Title:	 	 

 This Note is subject to the terms and conditions of a certain Intercreditor Agreement of even
date herewith between the Director and The Delaware County Bank and Trust Company. 

  
 3 

 EXHIBIT B 
 (to Loan Agreement between the Director of Development of the State of Ohio 
 and
Intellinetics, Inc., dated July 17, 2009) 
 Project Equipment 

 

	 	•	 	 GX software network servers 

  

	 	¡
 	 	 Business class windows application servers running Microsoft OS and SQL server database technology 

 

	 	•	 	 GX security software and appliances 

  

	 	¡
 	 	 Business class network monitoring software and hardware 

 

	 	•	 	 GX network attached storage 

  

	 	¡
 	 	 Business class network attached mass storage hardware and management software 

 

	 	•	 	 GX backup software and appliances 

  

	 	¡
 	 	 Business class data backup hardware and management software 

 EXHIBIT C 
 (to Loan Agreement between the Director of Development of the State of Ohio 
 and
Intellinetics, Inc., dated July 17, 2009) 
 Project Intangible Facilities 

 

	1.	Intellivue WebAPI — 

These are the primary web components that exist on the back end of the system. Developed in asp.net, they reside on the Intellinetics
managed platform. Internal documentation phase at this time. 
  

	2.	Host Site Manager (HSM) 

 End user site administration—security, user management, solution modification, connectors to other business systems (ERP, CRM, QuickBooks, etc.), Solutions On-Demand, and MFD connectors. 

 

	3.	Document Processing Services (DPS) 

	 	a.	Auto redaction 

	 	b.	Barcode processing, image cleanup, 

	 	c.	Optical character recognition (OCR) / intelligent character recognition (ICR), 

	 	d.	Text annotation and burning, image conversion, 

	 	e.	Workflow routing, customer pre/post processing. 

  

	4.	Host Site Services 

Administrative / Management / sales system 
 Providing automated setup and service initiation. 
 Online sales setup system, site
manager 
  

	5.	Business Process Automation Layer (Activity Center) The Activity Center is a key client software add-on for workflow and business process automation.

  

	6.	Client Applications — 

	 	a.	GX (search / view) 

	 	b.	GXI (Indexing—catalogs new content into system) 

	 	c.	GXS (scanning module) 

 SCHEDULE 1.2 
 Schedule of Development 
 Work packages and current start / end windows: 

 

	 	1.	Intellivue WebAPI -01/2009-12/2009 

 These are the primary web components that exist on the back end of the system. Developed in asp.net, they reside on the Intellinetics managed platform. Internal documentation phase at this time.

  

	 	2.	Host Site Manager (HSM)04/2009-09/2009 

 End user site administration—security, user management, solution modification, connectors to other business systems (ERP, CRM, QuickBooks, etc.), Solutions On-Demand, and MFD connectors. 

 

	 	3.	Document Processing Services (DPS) 04/2009-06/2010 

  

	 	a.	Auto redaction 

	 	b.	Barcode processing, image cleanup, 

	 	c.	Optical character recognition (OCR) / intelligent character recognition (ICR), 

	 	d.	Text annotation and burning, image conversion, 

	 	e.	Workflow routing, customer pre/post processing. 

  

	 	4.	Host Site Services 01/2009-6/2010 

 Administrative / Management / sales system 
 Providing automated setup and service
initiation. 
 Online sales setup system, site manager 

 

	 	5.	Business Process Automation Layer (Activity Center) 04/2009—6/2010 

The Activity Center is a key client software add-on for workflow and business process automation. 

 

	 	6.	Client Applications— 

  

	 	a.	GX (search/ view)-v2.0
                                         
                       1/2010 

  

	 	b.	GXI (Indexing—catalogs new content into system) v2.0             1/2010 

 

	 	c.	GXS (scanning module)—v2.0
                                         
           1/2010 

 SCHEDULE 2.2(k) 

Financial Statements 
  

	1.	Personal Financial Statement for Matthew Chretien dated May 6, 2008 

	2.	Personal Financial Statement for Alfred Michael Chretien dated October 20, 2008 

	3.	Historical, Current (08-08) and Projected P&L for 2005 through 2011 dated September 25, 2008 

	4.	Historical, Current (08-08) and Projected Balance Sheet for 2005 through 2011 dated September 25, 2008

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