Document:

Second Modification Agreement

 Exhibit 10.29 
 SECOND 
 MODIFICATION AGREEMENT 
 THIS SECOND MODIFICATION AGREEMENT (“AGREEMENT”) is made as of December 31, 2006, by and among AVATECH SOLUTIONS, INC., a Delaware
corporation, and AVATECH SOLUTIONS SUBSIDIARY, INC., a Delaware corporation, jointly and severally (collectively, the “BORROWERS”), TECHNICAL LEARNINGWARE COMPANY, INC., a Delaware corporation (“TLC”), and MERCANTILE-SAFE DEPOSIT
AND TRUST COMPANY (“LENDER”). The BORROWERS and TLC are collectively referred to herein as the “OBLIGORS”. 
 RECITALS

 In accordance with the terms and conditions set forth in a Loan and Security Agreement dated as of January 27, 2006 between the
BORROWERS and the LENDER (“ORIGINAL LOAN AGREEMENT”), the LENDER extended to the BORROWERS a revolving line of credit in the maximum principal amount outstanding at any one time of Five Million Dollars ($5,000,000.00) (the
“LOAN”). Pursuant to the ORIGINAL LOAN AGREEMENT, the BORROWERS’ obligations to the LENDER are secured by all of the BORROWERS’ tangible and intangible assets. Pursuant to a Guaranty Agreement dated as of January 27, 2006
from TLC to the LENDER (“TLC GUARANTY AGREEMENT”), TLC absolutely, unconditionally, and jointly and severally guaranteed the payment and performance of the BORROWERS’ obligations to the LENDER. Pursuant to a Security Agreements of
even date with the TLC GUARANTY AGREEMENT (“TLC SECURITY AGREEMENT”), the obligations of TLC to the LENDER are secured by all of TLC’s tangible and intangible assets. Pursuant to a Guaranty Agreement dated January 27, 2006, from
W. JAMES HINDMAN (“HINDMAN”) to the LENDER (the “HINDMAN GUARANTY”), HINDMAN guaranteed the BORROWERS’ obligations up to a specified amount set forth in such Guaranty Agreement. 
 Pursuant to a Modification Agreement dated as of May 30, 2006 (collectively with the ORIGINAL LOAN AGREEMENT, the “LOAN AGREEMENT”), the
LENDER extended to the BORROWERS a short term bridge loan, in the amount of Six Million Five Hundred Thousand ($6,500,000.00) (“BRIDGE LOAN”), and the terms of the ORIGINAL LOAN AGREEMENT were modified in certain respects. All sums due in
connection with the BRIDGE LOAN have been repaid by the BORROWERS. 
 The maturity date of the LOAN is December 31, 2006. The BORROWERS
have requested that the LENDER extend the maturity date of the LOAN, release the HINDMAN GUARANTY, and modify the terms of the LOAN in certain additional respects. The LENDER has agreed to the BORROWERS’ request, but only upon the terms and
conditions set forth herein. As used herein, the term “LOAN DOCUMENTS” shall mean the LOAN AGREEMENT, the TLC GUARANTY AGREEMENT, the TLC SECURITY AGREEMENT, and all other documents and agreements evidencing or securing the LOAN. Unless
otherwise defined herein, any terms appearing in all capital letters in this AGREEMENT shall have the respective meanings ascribed to such terms in the LOAN AGREEMENT. 
 NOW, THEREFORE, in consideration of the foregoing premises, the terms and conditions set forth herein, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties agree as follows: 
 1. Representations And Warranties Of Obligors. To induce the LENDER to enter into this AGREEMENT and to
provide the OBLIGORS with the accommodations described herein, the OBLIGORS 

 
make the representations and warranties set forth below and acknowledge the LENDER’S justifiable right to rely upon these representations and
warranties. 
 a. No Litigation. There is no action, suit, investigation, or proceeding pending against any of the OBLIGORS or any
other assets of any of the OBLIGORS, except for those proceedings previously disclosed to the LENDER in writing. 
 b. Organization; Good
Standing; Authorization. Each of the OBLIGORS: (a) has the power to enter into this AGREEMENT and all other documents, and agreements required to be executed pursuant to this AGREEMENT, and has the power to perform all of its obligations
hereunder and thereunder; (b) has duly authorized the entry into and performance of this AGREEMENT and all other documents and agreements required to be executed by such OBLIGOR; and (c) is in good standing in the state of its
incorporation or organization, as applicable, and is in good standing and qualified as a foreign corporation or limited liability company, as applicable, in all other states in which such qualification is required. 
 c. Valid, Binding And Enforceable. This AGREEMENT and all of the other documents and agreements executed pursuant to this AGREEMENT are the valid
and binding obligations of the OBLIGORS and are fully enforceable against each of the OBLIGORS in accordance with their terms. 
 d.
Subsidiaries. The BORROWERS have no subsidiaries except for the following entities, each of which is a wholly-owned subsidiary of AVATECH SOLUTIONS, INC.: (i) AVATECH SOLUTIONS SUBSIDIARY, INC., (ii) TLC, (iii) STERLING
SYSTEMS & CONSULTING, INC., a Michigan corporation (“STERLING SYSTEMS”), (iv) STERLING OHIO MANAGEMENT, INC., a Michigan corporation (“STERLING MANAGEMENT”), (v) STERLING SYSTEMS-INDIANA, L.L.C., a Michigan
limited liability company (“STERLING INDIANA”), and (vi) STERLING SYSTEMS-OHIO, L.L.C., a Michigan limited liability company (“STERLING OHIO”). 
 2. Amendments To Loan Agreement. The LOAN AGREEMENT is hereby modified and amended as follows: 
 a.
Amendments to Definitions. The definitions contained in Article 1 of the LOAN AGREEMENT are hereby modified as follows: 
 i. The
definition of “APPLICABLE MARGIN” set forth in Section 1.7 is modified by replacing the existing provision with the following: 
 Section 1.7. Applicable Margin. The term “APPLICABLE MARGIN” means the following percentages corresponding to the STOCKHOLDERS EQUITY, TANGIBLE NET WORTH and ratio of LIABILITIES to STOCKHOLDERS EQUITY in effect as of
the most recent CALCULATION DATE. 
  

															
	Tier
Level	 	STOCKHOLDERS
EQUITY	 	TANGIBLE
NET WORTH	 	RATIO OF
LIABILITIES TO
STOCKHOLDERS
EQUITY	 	 APPLICABLE
MARGIN
 FOR BASE
RATE
 BORROWINGS
	 	 	 APPLICABLE
MARGIN
 FOR LIBOR
 BORROWINGS
	 
	1	 	> $	7,500,000	 	> $	400,000	 	<3.00	 	2.00	%	 	4.75	%
	2	 	> $	7,500,000	 	> $	600,000	 	<2.25	 	1.50	%	 	4.25	%
	3	 	> $	8,000,000	 	> $	800,000	 	<1.50	 	1.25	%	 	4.00	%
	4	 	> $	8,500,000	 	> $	1,000,000	 	<1.25	 	1.00	%	 	3.75	%
	5	 	> $	9,000,000	 	> $	1,500,000	 	<1.00	 	0.50	%	 	3.25	%
	6	 	> $	10,000,000	 	> $	2,500,000	 	<0.80	 	0.00	%	 	3.00	%

  

 2 

 Effective as of the end of each calendar quarter, the APPLICABLE MARGINS shall be determined and
adjusted based upon the then current STOCKHOLDERS EQUITY, TANGIBLE NET WORTH and ratio of LIABILITIES to STOCKHOLDERS EQUITY, as determined in accordance with the quarterly COMPLIANCE CERTIFICATES to be provided by the BORROWER in accordance with
Section 5.12.7 of this AGREEMENT. The lowest tier at which the BORROWER satisfies each of the STOCKHOLDERS EQUITY, TANGIBLE NET WORTH and ratio of LIABILITIES to STOCKHOLDERS EQUITY for such tier shall be applicable. If the BORROWER fails to
timely provide a COMPLIANCE CERTIFICATE for any fiscal quarter of the BORROWER as required by and within the time limitations set forth in Section 5.12.7, the APPLICABLE MARGIN from the applicable date of such failure shall be based on Tier
Level 1 until five (5) BUSINESS DAYS after a COMPLIANCE CERTIFICATE has been provided, whereupon the Tier Level shall be determined as set forth above. Except as set forth above, each APPLICABLE MARGIN shall be effective from a CALCULATION
DATE until the next CALCULATION DATE. 
 ii. The definition of “GUARANTOR” set forth in Section 1.48 is modified by replacing
the existing provision with the following: 
 “Section 1.48. Guarantor. The term “GUARANTOR” means TLC.”

 iii. The definition of “LOAN DOCUMENTS” contained in Section 1.66 shall also include, without limitation, this AGREEMENT.

 iv. The definition of “MATURITY DATE” contained in Section 1.70 is modified by replacing “December 31, 2006”
with “December 31, 2008”. 
 v. The definitions of “OBLIGATIONS” contained in Section 1.75 is modified by deleting
the reference therein to the BRIDGE LOAN. 
 vi. The definitions of “BRIDGE LOAN” and “BRIDGE LOAN NOTE” set forth in
Sections 1.87 and 1.88 of the LOAN AGREEMENT are hereby deleted. 
 b. Additional Definitions. The following additional definitions
are hereby added to Article 1 of the LOAN AGREEMENT: 
 Section 1.87. Liabilities. The term “LIABILITIES” means all
liabilities of the BORROWERS, as determined in accordance with GAAP. 
 Section 1.88. Stockholders Equity. The term
“STOCKHOLDERS EQUITY” means the total stockholders equity of AVATECH, as determined in accordance with GAAP. In the event that any preferred stock is not otherwise included in the total stockholders equity of AVATECH in accordance with the
requirements of GAAP, such preferred stock shall be included for the purposes of this definition. 
 c. Advances under the Revolving
Loan. Section 2.1 of the LOAN AGREEMENT is hereby modified by replacing the existing provision with the following: 
  

 3 

 Section 2.1. Agreement To Extend The Loan. Subject to the terms and conditions stated
herein, the LENDER agrees to extend the LOAN to the BORROWERS as co-obligors from time to time until the MATURITY DATE. The LENDER shall advance proceeds of the LOAN to the BORROWERS by depositing into the COMMERCIAL ACCOUNT or in accordance with
such other procedures as may be agreed to between the LENDER and the BORROWERS, such sums as any of the BORROWERS may request, provided that the aggregate outstanding principal balance of the LOAN shall never exceed at any time the MAXIMUM LOAN
AMOUNT. The BORROWERS shall not request or permit any advance of proceeds of the LOAN which would cause the aggregate amount of advances made to or for the BORROWERS and outstanding under the LOAN DOCUMENTS to exceed the MAXIMUM LOAN AMOUNT. In the
event that the principal balance outstanding under the LOAN ever exceeds the MAXIMUM LOAN AMOUNT, the BORROWERS shall immediately, upon the demand of the LENDER, reduce the principal balance of the LOAN to an amount which is not in excess of the
MAXIMUM LOAN AMOUNT. Any termination of the LOAN by the LENDER shall relieve the LENDER of the LENDER’S obligation to lend money or to make financial accommodations to or for any or all of the BORROWERS and the BORROWERS’ accounts, and
shall in no way release, terminate, discharge or excuse any of the BORROWERS from its absolute duty to pay or perform the OBLIGATIONS. 
 d.
Bridge Loan. Sections 2.15 through 2.15.4 are hereby deleted in their entirety. 
 e. Financial Covenants. Section 5.19 is
hereby deleted, Sections 5.20, 5.21 and 5.23 of the LOAN AGREEMENT are hereby modified by replacing the existing provisions with the provisions set forth below, and the following additional Sections 5.24 and 5.25 are hereby added to the LOAN
AGREEMENT: 
 5.20. Minimum Tangible Net Worth. The BORROWERS, on a consolidated basis, shall at all times maintain TANGIBLE NET WORTH
in an amount greater than Four Hundred Thousand Dollars ($400,000.00), measured quarterly. 
 5.21. Leverage Ratio. The BORROWERS, on
a consolidated basis, shall maintain a LEVERAGE RATIO, measured quarterly, of less than 22:1 as of the end of each fiscal quarter. 
 5.23.
EBITDA Ratio. The BORROWERS, on a consolidated basis, shall maintain a ratio of (a) EBITDA to (b) INTEREST EXPENSE plus the total amount of cash payments of principal on account of LONG TERM DEBT, of greater than 1.25:1.00,
measured semi-annually on a year-to-date basis at December 31 and June 30 of each year. 
 5.24. Stockholders Equity.
STOCKHOLDERS EQUITY shall at all times be greater than Seven Million Five Hundred Thousand Dollars ($7,500,000.00), measured quarterly. 
 5.25. Ratio of Liabilities to Stockholders Equity. The ratio of LIABILITIES to STOCKHOLDERS EQUITY shall at all time be less than 3.00:1.00, measured quarterly. 
  

 4 

 3. No Novation; No Refinance; No Adverse Effect On Liens. The parties hereto do not intend that a
novation of the LOAN or any of the LOAN DOCUMENTS shall be created or effected because of the modification of the LOAN AGREEMENT, as described herein. The parties hereto do not intend that the execution of this AGREEMENT, and the amendments and
modifications to be made to the LOAN AGREEMENT, as described herein, shall: (a) constitute a refinance of the LOAN; or (b) affect or impair the validity, enforceability, or priority of any of the liens or security interests imposed by or
granted in the LOAN DOCUMENTS. 
 4. Other Terms; Confirmation Of Obligations. Other than the foregoing, all other terms and
conditions of the LOAN DOCUMENTS shall remain in full force and effect and are incorporated herein by reference. The OBLIGORS acknowledge, ratify and confirm their respective obligations under the LOAN DOCUMENTS and further acknowledge and confirm
that the OBLIGORS are and shall remain absolutely and unconditionally obligated to pay the LENDER all present and future indebtedness that is owed to the LENDER under the LOAN DOCUMENTS, as modified hereby, in the manner provided therein,
notwithstanding the LENDER’S execution of this AGREEMENT and any documents to be executed pursuant to this AGREEMENT, and notwithstanding the various agreements the LENDER has set forth herein and therein. 
 5. Confirmation of Subsidiary Guarantor. TLC consents to the modification and amendment of the LOAN AGREEMENT pursuant to the terms of this
AGREEMENT, including without limitation the extension of additional financing to the BORROWERS. TLC hereby acknowledges, ratifies and confirms that all of its obligations under the TLC GUARANTY AGREEMENT and TLC SECURITY AGREEMENT shall continue in
full force and effect, notwithstanding the execution of this AGREEMENT and any documents to be executed pursuant to this AGREEMENT, and notwithstanding the various agreements of the LENDER as set forth herein and therein. TLC hereby confirms and
acknowledges that it is jointly and severally liable, in accordance with the terms of the TLC GUARANTY AGREEMENT, for the payment and performance of the BORROWERS’ obligations under the LOAN DOCUMENTS. 
 6. Guaranty and Security Agreement of Sterling Subsidiaries. STERLING SYSTEMS, STERLING MANAGEMENT, STERLING INDIANA, and STERLING OHIO shall
execute and deliver to the LENDER a Guaranty Agreement pursuant to which they shall guarantee, among other things, the absolute full payment and performance by BORROWERS of their obligations to the LENDER. Each such subsidiary shall also execute and
deliver to the LENDER a Security Agreement granting to the LENDER a lien and security in and to all of the tangible and intangible assets of such subsidiaries. 
 7. Release of Hindman Guaranty. The LENDER hereby releases the HINDMAN GUARANTY, and HINDMAN shall have no further liability under such document. 
 8. Security. Except as expressly modified herein, the OBLIGORS’ obligations under the LOAN DOCUMENTS, as modified hereby, shall continue to
be secured by all of the liens, assignments, and security interests provided in the LOAN DOCUMENTS. 
 9. Miscellaneous. 

a. Incorporation; Limited Modification. The terms and conditions of the LOAN DOCUMENTS are incorporated herein by reference and made a part
hereof as if fully set forth herein. Except as specifically modified by or pursuant to this AGREEMENT, all terms and conditions of the LOAN DOCUMENTS remain unchanged, in full force and effect, and are hereby ratified and confirmed in all respects.
In the event of any inconsistencies between the terms and conditions of this AGREEMENT and any of the terms and conditions of the other LOAN DOCUMENTS (except as to the specific modifications contained herein), the LENDER shall determine, in its
sole discretion, which of the terms and conditions shall control. 
  

 5 

 b. Integration. This AGREEMENT, the LOAN DOCUMENTS (as modified), and any other documents executed
pursuant to or in connection with this AGREEMENT constitute the entire agreement between the LENDER and the OBLIGORS with respect to the subject matter hereof, and any term or condition not expressed therein does not constitute a part of the
agreement of the LENDER and the OBLIGORS with respect to such subject matter. 
 c. Severability. If any provision or part of any
provision of this AGREEMENT shall for any reason be held invalid, illegal or unenforceable in any respect, such invalidity, illegality or unenforceability shall not affect any other provision of this AGREEMENT and this AGREEMENT shall be construed
as if such invalid, illegal or unenforceable provision or part thereof had never been contained herein, but only to the extent of its invalidity, illegality, or unenforceability. 
 d. Number, Gender, And Captions. As used herein, the singular shall include the plural and the plural may refer to only the singular. The use of
any gender shall be applicable to all genders. The captions contained herein are for purposes of convenience only and are not a part of this AGREEMENT. 
 e. Further Assurances. As part of this AGREEMENT, and in consideration for the agreements of the LENDER as set forth therein, each OBLIGOR agrees to execute and deliver to the LENDER such other and further
documents as may, from time to time, in the sole opinion of the LENDER and the LENDER’S counsel, be necessary or appropriate to carry out the terms and conditions of this AGREEMENT and the LOAN DOCUMENTS. If any OBLIGOR fails to execute any
such documents within ten (10) days of being requested to do so by the LENDER, such OBLIGOR hereby appoints the LENDER or any officer of the LENDER as the attorney in fact for such OBLIGOR for purposes of executing such documents in the name,
place and stead of such OBLIGOR, which power of attorney shall be considered as coupled with an interest and irrevocable. 
 f.
Waivers. No failure or delay by the LENDER in the exercise or enforcement of any of its rights under any LOAN DOCUMENT shall be a waiver of such right or remedy, nor shall a single or partial exercise or enforcement thereof preclude any other
or further exercise or enforcement thereof or the exercise or enforcement of any other right or remedy. The LENDER may at any time or from time to time waive all or any rights under this AGREEMENT or any of the LOAN DOCUMENTS, but any such waiver
must be specific and in writing and no such waiver shall constitute, unless specifically so expressed by the LENDER in writing, a future waiver of performance or exact performance by any OBLIGOR. No notice to or demand upon any OBLIGOR in any
instance shall entitle such OBLIGOR (or any other OBLIGOR) to any other or further notice or demand in the same, similar or other circumstance. 
 g. Choice Of Law. The laws of the State of Maryland (excluding, however, conflict of law principles) shall govern and be applied to determine all issues relating to this AGREEMENT and the rights and obligations of the parties hereto,
including the validity, construction, interpretation, and enforceability of this AGREEMENT and its various provisions and the consequences and legal effect of all transactions and events which resulted in the execution of this AGREEMENT or which
occurred or were to occur as a direct or indirect result of this AGREEMENT having been executed. 
 h. Consent To Jurisdiction; Agreement
As To Venue. Each OBLIGOR irrevocably consents to the non-exclusive jurisdiction of the courts of the State of Maryland and of the United States District Court For The District Of Maryland, if a basis for federal jurisdiction exists. Each
OBLIGOR agrees that venue shall be proper in any circuit court of the State of Maryland selected by the LENDER or in the United States District Court For The District Of Maryland if a basis for federal jurisdiction exists and waive any right to
object to the maintenance of a suit in any of the state or federal courts of the State of Maryland on the basis of improper venue or of inconvenience of forum. 
  

 6 

 i. Binding Effect; No Oral Modification. This AGREEMENT shall be binding upon and shall inure to
the benefit of the parties and their respective personal representatives, successors and assigns. This AGREEMENT may not be altered, modified or amended unless such alteration, modification or amendment is in writing and executed by the LENDER.

 j. Time. Time is of the essence with respect to all of the obligations of the OBLIGORS under this AGREEMENT and the LOAN DOCUMENTS.

 k. Costs Of Transaction. All costs of the transactions contemplated by this AGREEMENT, including without limitation all of
attorneys’ fees and expenses incurred by the LENDER, shall be paid by the BORROWER, regardless of whether such costs are incurred before or after the execution and delivery of this AGREEMENT. 
 10. Release; Waiver. As part of the agreements set forth herein, and in consideration of the same, each OBLIGOR hereby releases the LENDER and all
of the LENDER’S past, present and future directors, officers, employees, agents and attorneys from any and all claims, causes of action, suits and damages (including claims for attorneys’ fees) which any of the OBLIGORS, jointly or
severally or otherwise, ever had or now have against the LENDER or any of the LENDER’S past, present and future directors, officers, employees, agents or attorneys. Without limiting the generality of the foregoing, each OBLIGOR acknowledges and
agrees that there exists no offset or defense to the obligations of any OBLIGOR as stated in the LOAN DOCUMENTS. 
 11. Waiver Of Jury
Trial. The parties hereto agree that any suit, action, or proceeding, whether claim or counterclaim, brought or instituted by any party to this AGREEMENT, or any of their successors or assigns, on or with respect to this AGREEMENT or any LOAN
DOCUMENT or which in any way relates, directly or indirectly, to the obligations of the OBLIGORS to the LENDER under this AGREEMENT or any LOAN DOCUMENT, or the dealings of the parties with respect thereto, shall be tried only by a court and not by
a jury. THE PARTIES EXPRESSLY WAIVE ANY RIGHT TO A TRIAL BY JURY IN ANY SUCH ACTION OR PROCEEDINGS. The parties acknowledge and agree that this provision is a specific and material aspect of the agreement between the parties and that the
parties would not enter into this AGREEMENT if this provision were not contained herein. 
 [SIGNATURES BEGIN ON FOLLOWING PAGE] 

 

 7 

 IN WITNESS WHEREOF, the parties have executed this AGREEMENT as of the date first above 
 written with the specific intention of creating a document under seal. 
  

									
	 WITNESS/ATTEST:
	 		 	BORROWERS:
			
		 		 	 AVATECH SOLUTIONS, INC.,
 A Delaware
Corporation

					
	  
	 		 	By:	 	  
	 	(SEAL)
		 		 		 	Lawrence Rychlak,	 	
		 		 		 	Executive Vice President and	 	
		 		 		 	Chief Financial Officer	 	
			
		 		 	 AVATECH SOLUTIONS SUBSIDIARY, INC.,
 A
Delaware Corporation

					
	  
	 		 	By:	 	  
	 	(SEAL)
		 		 		 	Lawrence Rychlak,	 	
		 		 		 	Executive Vice President and	 	
		 		 		 	Chief Financial Officer	 	
			
		 		 	TLC:
			
		 		 	 TECHNICAL LEARNINGWARE COMPANY, INC.,
 A
Delaware Corporation

					
	  
	 		 	By:	 	  
	 	(SEAL)
		 		 		 	Lawrence Rychlak,	 	
		 		 		 	Executive Vice President and	 	
		 		 		 	Chief Financial Officer	 	
			
		 		 	LENDER:
			
		 		 	MERCANTILE-SAFE DEPOSIT AND TRUST COMPANY
					
	  
	 		 	By:	 	  
	 	(SEAL)
		 		 		 	 Stephen D. Palmer,
 Senior Vice President
	 	

  

 8Supplier Agreement

 EXHIBIT 10.4 
 

 
 SUPPLIER AGREEMENT 
 Dated as of Feb 8, 2007, between Kreisler Industrial Corporation, a NJ corporation (“Supplier”), and Citibank, N.A., a national banking association (“Citibank”). 
 BACKGROUND 
 A. From time to time Supplier enters into
commercial trade transactions with various buyers identified on Schedule I hereto (each, a “Buyer”) for the sale of goods and/or services, resulting in payment obligations and accounts receivable owed by the respective Buyers to
Supplier. 
 B. To facilitate the processing of such payment obligations and accounts receivable, Supplier and Buyers intend to utilize a certain
computerized settlement system, including related services, equipment and software (as further defined in Annex A and, collectively, the “Orbian System”) established by Orbian Management Limited and its affiliates (collectively,
“Orbian”). 
 C. Orbian has granted Citibank a license with respect to the Orbian System pursuant to a License and Services Agreement, dated
as of March 17, 2004, between such parties (as amended from time to time, the “License Agreement”, a copy of which is available to Supplier upon request). Citibank is prepared to provide Supplier with a sublicense with respect
thereto, subject to the terms and conditions set forth in Annex A hereto. 
 D. From time to time, Supplier wishes to sell to Citibank, and Citibank wishes
to purchase from Supplier, accounts receivable that are processed through the Orbian System (“Receivables”), subject to the terms and conditions set forth in this Agreement. 
 NOW, THEREFORE, in consideration of the mutual covenants, terms, conditions, representations and warranties contained herein, and other good and valuable consideration
the receipt and sufficiency of which is hereby acknowledged, Supplier and Citibank agree as follows: 
 ARTICLE I: DEFINITIONS

 In this Agreement: 
 “Agreement” means
this Supplier Agreement, including all Schedules and Annexes hereto, as such may be amended from time to time in accordance with its terms. 
 “Business Day” means a day on which The Federal Reserve Bank of New York is open for business. 
 “Discount Offer”
has the meaning set forth in Section 2.1. 
 “Losses” shall mean any claims, liabilities, losses, damages, costs or expenses, including
reasonable attorneys’ fees and disbursements, other dispute resolution expenses (including reasonable fees and expenses in preparation for a defense of any investigation, litigation or proceeding) and costs of collection. 
 “Party” or “Parties” means each or both of Supplier or Citibank, as the context requires. 
 “Payment Notification” means, with respect to a Receivable, the notification sent by Citibank, in its capacity as paying agent for Buyer (“paying
agent”), to Supplier through the Orbian System, notifying Supplier that Buyer has instructed its paying agent to make payment from Buyer’s account of a specified amount on a specified date in full payment of such Receivable. 
 “Discount Proceeds” has the meaning set forth in Section 2.1. 
 ARTICLE II: RECEIVABLES SALE AND PURCHASE 
 2.1 Discount Offer. Upon receipt of a Payment Notification,
Supplier is deemed to automatically offer to sell to Citibank the Receivables (a “Discount Offer”) described in such Payment Notification at a price (the “Discount Proceeds”) equal to (x) the face amount of the
Receivables specified in the Payment Notification, decreased by (y) the applicable Discount Charge, and other fees and charges (as further described in Article IV and Schedule I hereto.) Subject to Section 2.4, any sales under this
Agreement shall be on a non-recourse basis to Supplier. This offer shall be communicated to Citibank via a Discount Offer issued automatically by the Orbian System. 
 2.2 Discount Acceptance. Citibank, at its option, may accept Supplier’s offer by purchasing the Receivables on or before the close of business on the second Business Day following its receipt of the
Discount Offer (the “Discount Offer Period”), by depositing the Discount Proceeds therefore in Supplier’s designated bank account. If Citibank has not deposited the Discount Proceeds with respect to a Receivable by the end of
the applicable Discount Offer Period (unless otherwise notified in writing by Citibank of an extension, not to exceed 2 Business Days), the offer shall be deemed not accepted by Citibank and rescinded by Supplier, it being understood that if such
Discount Offer is not issued by Supplier or accepted by Citibank, Citibank (in its capacity as Buyer’s paying agent) will make payment to Supplier’s designated bank account on the payment date specified in the Payment Notification solely
from funds deposited therein by the relevant Buyer. Citibank may elect to not accept any Discount Offer, based on a consideration of the following factors: (a) the Discount Offer is for Receivables belonging to a Buyer that is (i) the
subject of bankruptcy, insolvency or similar proceedings, (ii) in breach of its financial obligations, or (iii) deemed by Citibank, in its sole discretion, to be undergoing material adverse changes; or (b) Supplier is (i) the
subject of bankruptcy, insolvency or similar proceedings, (ii) in breach of its financial obligations, or (iii) in breach of any representations, warranties or covenants set forth in this Agreement. 
 supplier agreement, version 2.0 UTC auto 125 
  

 1 

 2.3 Receivables Purchase. (a) Supplier hereby agrees that, simultaneously with Citibank’s deposit
in Supplier’s designated bank account of the Discount Proceeds set forth in the Discount Offer, Supplier will be deemed to have (i) transferred to Citibank all of Supplier’s present and future right, title and interest in, to and
under the Receivables to which such Discount Offer relates, and (ii) provided notice to Citibank, as Buyer’s paying agent, of Supplier’s designation of Citibank as the business entity to receive payment of the amount specified in
Buyer’s Payment Notification with respect to such Receivables. No further writing shall be necessary to evidence such transfer of ownership. Notwithstanding the foregoing, Supplier agrees to sign all such other documents, and take all such
further actions, as Citibank may reasonably request from time to time to evidence this transfer of ownership. 
 (b) Supplier hereby agrees that its
obligations under this Agreement and any Discount Offers issued by it shall not be affected by the invalidity, unenforceability, existence, performance or non-performance of the relevant underlying transaction, which (and any liability for which)
shall be between Supplier and the relevant Buyer only. 
 (c) It is the intention of Supplier and Citibank that each purchase and sale of Receivables
pursuant to this Article II shall constitute a true sale, which sale will be absolute and irrevocable and provide Citibank with the full benefits of ownership of such Receivables. The sale of Receivables hereunder is made without recourse to
Supplier, provided, however, that such sale does not constitute and is not intended to result in an assumption by Citibank of any obligation of Supplier or any other person arising in connection with the Receivables or any other obligations of
Supplier. 
 2.4 Representations and Warranties. Supplier hereby agrees that, by issuing a Discount Offer with respect to any Receivable,
Supplier will be deemed to have made each of the following representations and warranties, both as of the date of the Discount Offer and as of the date such offer is accepted by Citibank pursuant to Section 2.2: 
 (a) Each such Receivable (i) is the exclusive property of Supplier, free and clear of all security interests, liens or claims of any kind; (ii) is based on a
sale of goods and/or services that have been delivered to and accepted by the relevant Buyer, and complies with all applicable legal requirements; (iii) to the best of Supplier’s knowledge, constitutes a valid, binding and unconditional
obligation of the relevant Buyer to pay the full amount of such Receivable, free of any defense, set-off or counterclaim; and (iv) to the best of Supplier’s knowledge, is not disputed by Buyer or any other person, and is not the subject of
any legal or arbitral proceeding; and 
 (b) The representations and warranties of Supplier in connection with the Sublicense, as set forth in Annex A, are
incorporated by reference in this Section 2.4 
 2.5 Covenants. Supplier hereby covenants and agrees with Citibank as follows: 
 (a) Maintenance and Access to Books and Records. Supplier shall maintain and implement administrative and operating procedures, and keep and maintain all
documents, books, records and other information reasonably necessary or advisable for the collection of all Receivables hereunder, and with respect to compliance of the underlying commercial transactions with applicable laws and regulations.
Supplier shall retain each record required to be maintained under this Section 2.5(a) during the term of this Agreement and, if applicable, for such longer period as may be required by law or regulation. Supplier shall make such procedures,
documents, books, records and other information available to Citibank and its agents, representatives and relevant authorities upon request, and shall allow copies or extracts thereof to be made, as Citibank deems necessary. To the extent that
Citibank has purchased Receivables pursuant to this Article II, Supplier (i) will mark its master data processing records relating to such Receivables with a legend properly evidencing that Citibank has purchased such Receivables as provided in
this Agreement, and (ii) at Citibank’s request, will transfer possession to Citibank of all receipts, order slips, acceptances, and other records or documentation in Supplier’s possession pertaining to the sale of goods and/or
services to which such Receivables relate. 
 (b) Compliance with Contracts. Supplier shall, at its expense, timely and fully perform and comply with
all material provisions required to be observed by it under the contracts related to the Receivables. 
 (c) Financing Statements. Supplier hereby
irrevocably authorizes Citibank, in its sole discretion, to file one or more financing statements (and other similar instruments) and amendments thereto, relative to all or any part of the Receivables purchased by Citibank as contemplated by this
Agreement, without the signature of Supplier, to the extent permitted by applicable law. If not so permitted by applicable law, or in such other circumstances as Citibank may reasonably request, Supplier will execute and file any such financing
statements and amendments thereto, and such other instruments or notices, as may be necessary or appropriate to perfect and maintain the perfection of Citibank’s ownership interest in such Receivables. 
 (d) Data. If Supplier provides Citibank with personal data about itself or its authorized users, Supplier warrants that such data has been given with the consent
of each individual and in compliance with applicable personal data protection and privacy legislation. Supplier consents to the disclosure by Citibank of such data to Buyers to the extent such data is needed in connection with the delivery of
Payment Notification. 
 (e) Other. The covenants and agreements of Supplier set forth in connection with the Sublicense, as set forth in Annex A, are
incorporated by reference in this Section 2.5. 
 ARTICLE III: SUBLICENSE TO THE ORBIAN SYSTEM 
 3.1 Sublicense. The terms and provisions of Annex A are an integral part of this Agreement, and Annex A is incorporated herein by reference in its
entirety. 
 ARTICLE IV: FEES AND CHARGES 
 4.1 Fees and Charges. From time to time, Citibank will provide to Supplier a pricing schedule that discloses the licensing fee, the method used to calculate the applicable Discount Charge and other fees and charges (the
“Pricing Schedule”). Citibank’s agreement to purchase Receivables of a particular Buyer shall be subject to the terms of the Pricing Schedule. The Pricing Schedule shall be valid for 12 months from the effective date specified
therein and is subject to change by Citibank in its sole discretion at any time upon 30 days’ written notice to Supplier; provided, however, that any such changes shall not affect the Discount Charge applicable to purchases
scheduled for consummation pursuant to any Discount Offer then outstanding. The initial Pricing Schedule is set forth as Schedule I hereto. 
 supplier
agreement, version 2.0 UTC auto 125 
  

 2 

 ARTICLE V: MISCELLANEOUS 
 5.1 Waivers; Severability. No delay or failure of any Party hereto in exercising any right, privilege or option under this Agreement shall operate as a waiver of such or of any other right, privilege, or
option. If any provision of this Agreement is or becomes illegal or invalid under any applicable law, the validity of the remaining provisions shall not be affected thereby. 
 5.2 Limitation on Liability. (a) Citibank shall be entitled to rely on any communication sent by Supplier, irrespective of any error or fraud contained in the communication or the identity of the
individual who sent the communication, and shall not be liable for any action taken or omitted in reliance on any notice, direction, consent, certificate, affidavit, statement, designation or other paper or document reasonably believed by it to be
genuine and to have been duly and properly signed or presented to it by Supplier. 
 (b) Except for liabilities to third parties relating to defense and
indemnification obligations hereunder, neither Party shall be liable to the other Party or responsible for any loss of business or profits, revenue or goodwill, or any indirect or consequential, special, exemplary or punitive losses or damages,
whether arising from negligence, breach of contract or otherwise, even if informed of the possibility of those losses or damages. 
 (c) Citibank shall not
be liable for any Losses arising out of or relating to any of its actions or omissions to act hereunder, except to the extent that any such Losses are caused by Citibank’s willful misconduct, fraud or negligence. 
 (d) Neither Party shall be deemed to be in default of any of the obligations required to be performed by it under this Agreement to the extent that performance thereof
is delayed, hindered or becomes impossible because of any act of God or public enemy, hostilities, war (declared or undeclared), guerilla activities, terrorist activities, act of sabotage, blockade, earthquake, flood, land slide, avalanche, tremor,
ground movement, hurricane, storm, explosion, fire, labor disturbance, riot, insurrection, strike, sickness, accident, civil commotion, epidemic, act of government or its agencies or officers, power interruption or transmission failure or any other
cause beyond the reasonable control of such Party. 
 5.3 No Implied Duties. Citibank shall be obliged to perform such duties and only such
duties as are specifically set forth herein, and no implied duties or responsibilities shall be read or implied into this Agreement against Citibank. Notwithstanding any other provision elsewhere contained in this Agreement, Citibank shall have no
duties or obligations hereunder to any person or entity other than Supplier and, without limiting the foregoing, does not assume any obligation or relationship of agency or trust hereunder for, or with, Orbian, Supplier, Buyers, or any other
persons. 
 5.4 No Assignment. Neither Supplier nor Citibank may assign any of its rights or obligations under this Agreement without the prior
written consent of the other Party; provided, however, that Citibank may assign its rights and obligations under this Agreement in whole or in part to any of its subsidiaries or affiliates upon written notice to Supplier. 

5.5 Termination. Either Party hereto may terminate this Agreement at any time and with immediate effect upon 30 days’ prior written notice to the
other Party; provided, however, that either Party may terminate this Agreement with immediate effect upon 5 days’ prior written notice if the other Party is in breach of, or fails to perform any of its material obligations under,
this Agreement. Upon notice of termination, Supplier shall no longer issue Discount Offers to Citibank and Citibank will no longer accept Discount Offers from Supplier. 
 5.6 Survival. If this Agreement is terminated in accordance with Section 5.5, then this Agreement shall become null and void and of no further force and effect, except that all confidentiality,
security, indemnity, payment and reimbursement obligations and all limitation of liability provisions contained in this Agreement shall survive and remain in full force and effect notwithstanding such termination and the payment of all amounts owing
hereunder. 
 5.7 Governing Law; Jurisdiction. This Agreement is governed by the laws of the State of New York. The Parties agree that any New
York State court or Federal court sitting in New York City or an appellate court having appellate jurisdiction over such courts has non-exclusive jurisdiction to settle any disputes in connection with this Agreement, and submit to the jurisdiction
of those courts. Each Party waives any right to immunity from jurisdiction to which it may be entitled (including, to the extent applicable, immunity from pre-judgment attachment and post-judgment attachment and execution.) 
 5.8 Waiver of Jury Trial. The Parties waive any rights they may have to a jury trial of any claim or cause of action based on or arising from this
Agreement. 
 5.9 Notices. Except as otherwise expressly contemplated herein, all notices pursuant to this Agreement shall be in writing, duly
signed by the Party giving such notice, and shall be delivered, faxed or mailed by registered or certified mail, as follows: 
  

			
	 If given to Supplier:
  
 Kreisler Ind. Corp.
 180 Van Riper Ave.
 Elmwood Park, NJ
 Telephone: 20l-79l-0700
 Fax: 201-791-8015
 Attention: Ned Stern
	  	 If given to Citibank:
  
 Citibank, N.A.
 388 Greenwich Street 
 New York, New York 10013
 Telephone: 212-816-7019
 Fax: 212-816-2265
 Attention: Deborah Bennett

 5.10 Entire Agreement; No Third Party Beneficiaries; Amendments. (a) This Agreement embodies
the entire agreement between Supplier and Citibank relating to the subject matter hereof, and supersedes all prior agreements relating to this subject matter. 
 (b) Except as otherwise expressly set forth in Annex A, this Agreement shall not be construed to confer any right, benefit, remedy or claim upon any person or entity other than Supplier and Citibank and their respective successors and
permitted assigns. All amendments and waivers to this Agreement must be in writing and signed by or on behalf of each of the Parties. 
 5.11
Counterparts. This Agreement may be executed in any number of counterparts, which taken together shall constitute a single copy of this Agreement. 
 supplier agreement, version 2.0 UTC auto 125 
  

 3 

 IN WITNESS WHEREOF, each of the Parties hereto has executed this Agreement as of the date and year first
above written. 
  

							
	 	 	 	 	CITIBANK, N.A.
				
	By:	 	 /s/ Edward A. Stern
	 	By:	 	 /s/ Deborah Bennett

	Name:	 	Edward A. Stern	 	Name:	 	Deborah Bennett
	Title:	 	Co-President & CFO	 	Title:	 	Director

 supplier agreement, version 2.0 UTC auto 125 
  

 4 

 SCHEDULE I to the 
 SUPPLIER AGREEMENT 
 SUPPLIER PRICING SCHEDULE 
 Supplier Name: Kreisler Industrial Corporation 
 Control Number (to
be completed by Citibank):                              
 Buyer: UTC 
 A. Receivables Discounting Fees and Charges

 “ Discount Charge” for each Discount Offer is defined as the Payment Amount multiplied by the Discount Rate;

 Discount Charge = Payment Amount x Discount Rate. 
 Where: 
 “Payment Amount” is the face amount of Receivables due from a Buyer on the
specified date, as contained in the Payment Notification. 
 “Discount Rate” means the rate percent per annum calculated as
the sum of the LIBOR prevailing on that day and the Spread, multiplied by the Discount Acceptance Period and divided by 360: 
 Discount Rate =
(LIBOR + Spread) x (Discount Acceptance Period / 360). 
 “Spread” is equal to 1.25% per annum. 
 “LIBOR” (London Inter-Bank Offering Rate) is the three-month US-dollar LIBOR, as quoted that day by the British Banking Association and
published the following day in the Wall Street Journal. 
 “Discount Acceptance Period” is the number of days in the period
starting from (and including) the date two Business Days after the Discount Offer Date until (but excluding) the Payment Due Date. 
 “Discount Offer Date” means the date that the Orbian System processes each Discount Offer. 
 “Payment Due
Date” means the date of payment by a Buyer of the Payment Amount as specified in the Payment Notification. 
 B. Effective Date:

  

	1)	Effective date is the date the Agreement was executed. 

  

	2)	The above pricing is valid from 12 months of the effective date and is subject to change at Citibank’s discretion subject to 30 days’ notification.

 C. Buyer: 
  

	1)	For purpose of this Agreement, “Buyer” shall mean UTC and any other customers of Supplier that Citibank and Supplier agree to add to this Agreement.

 supplier agreement, version 2.0 UTC auto 125 
  

 i 

 ANNEX A to the 
 SUPPLIER AGREEMENT 
 SUBLICENSE OF THE ORBIAN SYSTEM 
 Terms and Conditions 
 ARTICLE
I: DEFINITIONS 
 In this Annex: 
 “Agreement” means the Supplier Agreement between the Parties hereto, to which this Annex A is attached and is deemed to be a part thereof for all purposes. 
 “Equipment” means all equipment provided by or on behalf of Orbian, directly or indirectly through Citibank, to Supplier for the purpose of accessing or using the Orbian System, including all
authentication products. 
 “Intellectual Property Rights” means all rights in inventions, patents, copyrights, design rights, database
rights, trade marks and trade names, service marks, trade secrets, know-how and other intellectual property rights (whether registered or unregistered) and all applications and rights to apply for any of them anywhere in the world that apply to the
Licensed Resources. 
 “Licensed Resources” means, collectively, the Orbian System and Orbian’s Policies and Procedures. 
 “Message” has the meaning set forth in Section 2.3 of this Annex. 
 “Policies and Procedures” means all tangible printed information (including any in electronic form) provided from time to time by or on behalf of Orbian (whether directly or indirectly through
Citibank or otherwise) to Supplier in connection with the use of the Orbian 
 System. 
 “Software” means all software, programming or object code provided by or on behalf of Orbian to Supplier for utilizing a computer or like device to use the Orbian System. 
 “Sublicense” has the meaning set forth in Section 2.1 of this Annex. 
 Capitalized terms used herein without definition have the meanings ascribed to them in Article I of the Agreement. 
 ARTICLE II: SUBLICENSE OF THE ORBIAN SYSTEM 
 2.1 Sublicense Grant. (a) Subject to the terms and conditions set forth
herein, Citibank hereby grants Supplier a limited, personal, non-exclusive, non-transferable sublicense and right, without the right to further sublicense, during the term of this Agreement to access and use the Licensed Resources, solely for the
purposes contemplated by this Agreement (the “Sublicense”). Except as expressly set forth in this Agreement, Supplier shall have no other right (including any ownership right or intellectual property right), title or interest to or
in the Licensed Resources or any portion thereof. 
 (b) Supplier acknowledges that all right, title and interest in and to the Orbian System, including
without limitation, all Intellectual Property Rights, are vested, and shall remain vested, in Orbian and its licensors. Notwithstanding anything to the contrary contained herein and except as otherwise may be expressly agreed in writing, all right,
title and interest in and to revisions, upgrades, updates, derivative works and other improvements to the Orbian System shall vest solely in Orbian. Except for the grant herein by Citibank to Supplier of the Sublicense, nothing in this Agreement
shall act to operate as an assignment or other transfer of any of such rights to Supplier. 
 2.2 Usage. (a) Supplier shall access and use
the Orbian System only in accordance with this Agreement and Orbian’s Policies and Procedures. Supplier shall remain informed as to any updates to Orbian’s Policies and Procedures that may be implemented from time to time. Approval of an
update shall be deemed to be given if Supplier continues to utilize the Orbian System subsequent to the publication of any such update. 
 (b) Supplier shall
promptly use any successors, updates, new releases or replacements of any portion of the Equipment or Software provided to it from time to time by Orbian, directly or indirectly through Citibank or otherwise, for use in accessing the Orbian System,
and cease to use the previous version or release of such portion. 
 (c) Supplier shall have the right under the Sublicense to use the content of the website
for the Orbian System on a computer screen, to print reasonable extracts from the website, and to save reasonable copies to Supplier’s hard drive, in each case solely for the purposes contemplated by this Agreement. All other copying,
distribution or commercial use of any of the content of the website is strictly forbidden. Except for the limited right granted by this Section 2.2(c), no other right or license is granted in respect of the content of the website. 

(d) Supplier does not have the right to, and shall not, without the written consent of Orbian or Citibank, alter or modify the whole or any part of the Licensed
Resources. 
 2.3 Security. Supplier shall safeguard and keep confidential, and put into effect and maintain commercially reasonable security
measures to safeguard and keep confidential, the Licensed Resources. In furtherance of the foregoing, Supplier agrees that: 
 (i) it will not
knowingly interfere with, defeat, circumvent or tamper with any information or instruction that is, by the terms of this Agreement or Orbian’s Policies and Procedures, to be transmitted through the Orbian System (a “Message”), or with
the restrictions on use of functionality or access to information on any portion of the Orbian System, or attempt to do so; 
 (ii) it will
not knowingly introduce into any portion of the Orbian System any virus or other data or code that harms, or may adversely affect, the operation of the Orbian System; and 
 (iii) it will ensure that all Messages being communicated by Supplier through the Orbian System are sent in accordance with this Agreement and Orbian’s Policies and Procedures. 
 2.4 Messages. (a) Supplier shall use the Orbian System to send all Messages under this Agreement (including, without limitation, Discount Offers and
any updates to the Supplier’s list of personnel authorized to use the Orbian System on Supplier’s behalf). Any Message sent by Supplier via the Orbian System is valid and binding on Supplier, and Citibank and Orbian are entitled to rely
thereon, irrespective of any error or fraud contained therein or the identity of the individual who sent the Message, except to the extent that such error or fraud or use of the Orbian System by an unauthorized third party is a result of the failure
by Citibank or Orbian, as the case may be, to use commercially reasonable security measures to prevent unauthorized access to the Orbian System. Supplier agrees that the act of sending a Message electronically in accordance with this Agreement is as
legally binding as if Supplier had manually executed and delivered that Message in written form, and that Supplier will not contest the validity, legally binding nature or enforceability of that Message on the basis that the act of sending the
Message electronically is invalid or not binding on Supplier. 
  

 A-1 

 ANNEX A to the 
 SUPPLIER AGREEMENT 
 SUBLICENSE OF THE ORBIAN SYSTEM 
 Terms and Conditions 
 (b) Supplier covenants
and agrees to defend, indemnify and hold harmless Citibank, Orbian and their respective employees, officers, directors and agents acting within the scope of their authority (each, an “indemnified party”) from and against any and all
Losses), including Losses relating to the enforcement of this indemnity, incurred as a result of reliance by Citibank or Orbian on any Message sent by Supplier using the Orbian System, except to the extent that such Losses are (i) caused by the
fraud, negligence, or willful misconduct of Citibank or Orbian, or any of their respective employees, officers, directors and agents, as the case may be, or (ii) arise as a result of a failure by Orbian to perform as contemplated by Sections
4.1, 5.1 or 10 of the License Agreement. 
 2.5 System Availability. Supplier acknowledges and agrees that: (i) neither Citibank nor
Orbian represents or warrants that the Orbian System will be error-free; (ii) there will be downtime from time to time when the Orbian System cannot be accessed; and (iii) Supplier is responsible for providing and maintaining, and neither
Citibank nor Orbian has any liability or responsibility in respect of, equipment not supplied by or on behalf of Orbian, or utility services that Supplier utilizes as a result of its participation in the Orbian System and maintaining a link to the
Orbian System. 
 2.6 Confidentiality. (a) Each Party agrees to maintain the confidentiality of any Confidential Information (as defined
below) of the other Party to which it has access under the Orbian System or otherwise under this Agreement, and to use such Confidential Information only for the purposes of exercising its rights and performing its obligations under this Agreement,
and not for its own personal gain or benefit. “Confidential Information” shall mean information of a Party that the other Party knows or reasonably should know to be confidential to such first Party; provided, however,
that the term does not include any information that the receiving Party can demonstrate, by clear and convincing evidence: (i) to be part of the public domain without any breach of this Agreement by the receiving Party; (ii) to be or to
become generally known to the general public or organizations engaged in the same or similar businesses as the receiving Party on a non- confidential basis, through no wrongful act of such Party; (iii) to be known by the receiving Party prior
to disclosure to it hereunder without any obligation to keep it confidential; (iv) to be disclosed to it by a third party which, to the best of the receiving Party’s knowledge, is not required to maintain the information as proprietary or
confidential; (v) to be independently developed by the receiving Party without reference to Confidential Information of the other Party; or (vi) to be the subject of a written agreement whereby the other Party consents to the disclosure of
such Confidential Information on a non-confidential basis. 
 (b) Notwithstanding the foregoing, either Party may disclose Confidential Information obtained
from the other Party to any authority of competent jurisdiction if disclosure is required pursuant to a court order or instruction of any regulatory or supervisory authority having jurisdiction over it, provided that the disclosing Party shall have
given the other Party prompt notice thereof (unless it has a legal obligation to the contrary) so that the other Party may seek a protective order or other appropriate remedy to prevent disclosure. 
 2.7 Representations, Warranties and Covenants of Supplier. Supplier hereby represents, warrants and covenants to and with Citibank as follows: 

(a) Supplier’s use of the Orbian System is solely to settle genuine and lawful commercial trade transactions, arising in the ordinary course of business, for the
sale and purchase of goods and/or services between Buyer and Suppliers. Supplier shall not use the Orbian System for investment or arbitrage functions or purposes, or for any money laundering purpose, or in contravention of any law or regulation,
and Messages issued at Supplier’s request shall not be, and are not intended to be, used in furtherance of any of the foregoing. 
 (b) Supplier shall
comply with all relevant laws and regulations applicable to this Agreement and transactions conducted using the Orbian System including, without limitation, all applicable export control laws. 
 (c) Information provided by Supplier to Citibank from time to time in connection with this Agreement is and shall be true and accurate in all material respects, and
Citibank is hereby authorized from time to time to verify information about Supplier. 
 (d) Supplier shall defend, indemnify and hold harmless Citibank,
Orbian and their respective affiliates, employees, directors, officers, and agents acting within the scope of their authority (each an “indemnified party”), from and against all Losses, including Losses relating to the enforcement of this
indemnity, arising out of or in any way relating to any breach of Supplier’s obligations under this Agreement, or any suit, demand, claim or other dispute with respect to a transaction by Supplier using the Orbian System, except to the extent
that any portion of such Losses is caused by the negligence, fraud or willful misconduct of such indemnified party, as the case may be. 
 2.8 Mutual
Representations, Warranties and Covenants of the Parties. (a) Each of Supplier and Citibank represents, warrants, and covenants as follows: (i) it is validly existing and in good standing and has the power to enter into and
perform, and has all necessary authorizations for the entry into, performance and delivery of, this Agreement and the transactions contemplated by this Agreement; (ii) this Agreement constitutes its legal, valid and binding obligation,
enforceable in accordance with its terms; and (iii) its execution, delivery and performance of this Agreement does not contravene any contract binding on or affecting it or any of its properties, does not violate any applicable law or
regulation, and does not require any notice, filing or other action to or by any governmental authority. 
 (b) Except as expressly provided in this
Agreement or the License Agreement, no representation, warranty, term or condition, express or implied, statutory or otherwise, is given or assumed by Citibank or Orbian in respect of (i) the Licensed Resources, (ii) Supplier’s
underlying commercial transactions, or (iii) the goods or services to which such underlying transactions relate (regardless of any assistance that Citibank or Orbian may, in its sole discretion, provide to Supplier.) All such representations,
warranties, terms and conditions are excluded, except to the extent that this exclusion is prohibited by law. Without limiting the foregoing, Supplier understands that neither Citibank nor Orbian is giving any representation or warranty as to
condition, performance, fitness for purpose, suitability, merchantability, quality or otherwise, or of non-infringement, except as expressly provided herein or in the License Agreement. 
 2.9 Third Party Beneficiary Covenants. Supplier and Citibank understand and agree as follows: 
 (a) Pursuant to
the License Agreement, Supplier is an intended third-party beneficiary of the performance and non-infringement representations, warranties, covenants and indemnities provided by Orbian relating to the Licensed Resources, subject in all respects to
the terms, conditions, limitations on liability and other limitations set forth therein. 
  

 A-2 

 ANNEX A to the 
 SUPPLIER AGREEMENT 
 SUBLICENSE OF THE ORBIAN SYSTEM 
 Terms and Conditions 
 (b) Orbian shall be an
intended third-party beneficiary of Supplier’s obligations, representations, warranties, covenants and indemnities set forth in this Annex A, subject in all respects to the terms, conditions, limitations on liability and other limitations set
forth in this Agreement (including the Supplier Agreement, of which this Annex A is part.) 
 2.10 Fees. Supplier agrees to pay to Citibank
certain fees, commissions and other amounts, as further described in Article IV and Schedule I to the Agreement. 
  

 A-3

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00117-of-00352.parquet"}]]