Document:

caci-ex102_6.htm

PERFORMANCE UNDERTAKING

This PERFORMANCE UNDERTAKING, dated as of December 28, 2018 (this “Undertaking”), is made by CACI INTERNATIONAL INC, a Delaware corporation (the “Performance Guarantor”), in favor of MUFG BANK, LTD. (“MUFG”), as Administrative Agent (as defined below) for the benefit of itself and the Purchasers (as defined below).

WITNESSETH

WHEREAS, CACI, Inc. – Federal and certain of its Subsidiaries (each, a “Seller” and collectively, the “Sellers”), MUFG, as administrative agent (the “Administrative Agent”) and certain purchasers identified therein (the “Purchasers”) have entered into that certain Master Accounts Receivable Purchase Agreement, dated as of the date hereof (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Agreement”), pursuant to which the Administrative Agent (on behalf of the Purchasers) will purchase, Receivables and Related Assets from the Sellers; and

WHEREAS, it is a condition precedent for the parties to enter into the Agreement that the Performance Guarantor execute and deliver this Undertaking.

NOW THEREFORE, in consideration of the foregoing and in order to induce the Administrative Agent and the Purchasers to enter into the Agreement, the Performance Guarantor agrees as follows:

1.Performance Undertaking.  For value received by it and Sellers, the Performance Guarantor hereby absolutely, unconditionally and irrevocably assures and undertakes (as primary obligor and not merely as surety) for the benefit of the Administrative Agent (for itself and on behalf of the Purchasers), the due and punctual performance and observance by each Seller and the Seller Representative (and, in each case, any of its successors and assigns) of all their covenants, agreements, undertakings, indemnities and other obligations or liabilities, whether monetary or non-monetary (including all of each Seller’s payment, repurchase, indemnity or similar obligations), under the Agreement and each other Purchase Document (and regardless of the capacity of such Person in which incurred under such documents) (collectively, the “Guaranteed Obligations”).

2.Expense Undertaking.  The Performance Guarantor absolutely, unconditionally and irrevocably agrees to pay promptly on demand all costs and expenses of the Administrative Agent, if any (including, without limitation, reasonable counsel fees and out of pocket expenses) in connection with enforcement (whether through negotiation, legal proceedings or otherwise) of its rights under this Undertaking or any other Purchase Document (the “Expense Obligations”).

3.Obligations Absolute.  The Performance Guarantor agrees to pay the Guaranteed Obligations and Expense Obligations, regardless of any applicable law now or hereafter in effect in any jurisdiction affecting any terms of any Purchase Document or the rights of the Administrative Agent with respect thereto, and notwithstanding a discharge in bankruptcy of all or any part of any Seller’s obligations under the Purchase Documents. The liability of the Performance Guarantor hereunder shall be an absolute and primary obligation of payment and the Administrative Agent shall not be required to first (a) proceed against the Sellers; (b) proceed 

against or exhaust any security held from the Sellers; or (c) pursue any other remedies it may have, including remedies against other guarantors.

4.Waivers. The Performance Guarantor unconditionally and irrevocably waives promptness, diligence, notice of acceptance hereof, and all other notices and demands of any kind to which the Performance Guarantor may be entitled as a guarantor, including, without limitation, demands of payment and notices of nonpayment, default, protest and dishonor to any Seller. The Performance Guarantor further hereby waives notice of, consents to, and irrevocably waives any defenses it may now have or hereafter acquire in any way relating to any or all of the following: (a) any agreement or arrangement for payment, extension or subordination, of the whole or any part of any Seller’s obligations under the Purchase Documents, (b) the modification, amendment, waiver or consent to departure of any of the terms of the Purchase Documents, including, without limitation, in the time, place or manner of payment or any increase in the Guaranteed Obligations, (c) the forbearance by the Administrative Agent in the exercise of any rights against any Seller, (d) the change in location or release of any collateral of any Seller (if any) or the taking of a security interest in any additional or substituted collateral of any Seller (if any), (e) any lack of validity or enforceability of any Purchase Document or any agreement or instrument relating thereto (including, for the avoidance of doubt, as against any Seller), (f) any defense arising by reason of any claim or defense based upon an election of remedies by the Administrative Agent that in any manner impairs, reduces, releases or otherwise adversely affects the subrogation, reimbursement, exoneration, contribution or indemnification rights of the Performance Guarantor or other rights of the Performance Guarantor to proceed against any Seller, (g) any defense based on the right of set-off or counterclaim against or in respect of the obligations owed by any Seller under the Purchase Documents, or (h) any other circumstance (including, without limitation, (i) any statute of limitations, (ii) any law governing usury or insolvency and (iii) any other law providing any Seller with a defense from non-payment) or any existence of or reliance on any representation by the Administrative Agent that might otherwise constitute a defense available to, or a discharge of any Seller or any other guarantor or surety.  The only defense the Performance Guarantor shall have under this Undertaking is the payment and performance in full of the Guaranteed Obligations and Expense Obligations.

5.Reinstatement. This Undertaking will continue to be effective or will be reinstated, as the case may be, if at any time any payment made to the Administrative Agent is rescinded or must be returned upon the occurrence of any bankruptcy proceeding of any Seller as if such payment had not been made.

6.Continuing Guaranty.  This Undertaking is a continuing guaranty and shall continue in full force and effect until terminated pursuant to this Section 6. This Undertaking shall automatically terminate upon the termination of the Commitments and the payment and performance in full of the Guaranteed Obligations and Expense Obligations (whether by any Seller or otherwise), other than contingent indemnification obligations with respect to which no claim has been made; provided, that any such termination shall be subject to the reinstatement provisions set forth in Section 5 of this Undertaking.

7.Subrogation and Other Rights.  The Performance Guarantor hereby unconditionally and irrevocably agrees not to exercise any rights that it may now have or hereafter acquire against any Seller that arise from the existence, payment, performance or enforcement of this Undertaking, 

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including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification and any right to participate in any claim or remedy of the Administrative Agent against any Seller whether or not such claim, remedy or right arises in equity or under contract, statute or common law, unless and until all of the Guaranteed Obligations and Expense Obligations shall have been paid in full in cash and the Commitments have been terminated. If any amount shall be paid to the Performance Guarantor in violation of the immediately preceding sentence at any time prior to the payment in full in cash of the Guaranteed Obligations and Expense Obligations and the termination of the Commitments, such amount shall be received and held in trust for the benefit of the Administrative Agent, and shall forthwith be paid or delivered to the Administrative Agent in the same form as so received (with any necessary endorsement or assignment) to be credited and applied to the Guaranteed Obligations and Expense Obligations, as applicable, and all other amounts payable under this Undertaking.

8.Governing Law.  TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PERFORMANCE GUARANTOR AND THE ADMINISTRATIVE AGENT HEREBY WAIVE ALL RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING BASED HEREON. Any assignee of the Administrative Agent permitted by the Agreement and all subsequent assignees permitted by the Agreement shall have all of the rights of the Administrative Agent hereunder and may enforce this Undertaking with the same force and effect as if such Guaranty were given to such assignee in the first instance. The invalidity, illegality or unenforceability of any provision of this Undertaking shall not affect the validity, legality or enforceability of any of its other provisions. LEGAL RIGHTS AND OBLIGATIONS HEREUNDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. This Undertaking shall be binding on the Performance Guarantor and its successors and assigns.

9.Jurisdiction.  THE PERFORMANCE GUARANTOR AND THE ADMINISTRATIVE AGENT HEREBY IRREVOCABLY CONSENT TO THE EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND THE FEDERAL DISTRICT COURT FOR THE STATE OF NEW YORK IN CONNECTION WITH ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS UNDERTAKING OR THE TRANSACTIONS CONTEMPLATED HEREBY. THE PERFORMANCE GUARANTOR AND THE ADMINISTRATIVE AGENT WAIVE ANY OBJECTIONS BASED UPON VENUE OR “FORUM NON CONVENIENS” IN CONNECTION WITH ANY SUCH ACTION OR PROCEEDING. THE PERFORMANCE GUARANTOR CONSENTS THAT PROCESS IN ANY SUCH ACTION OR PROCEEDING MAY BE SERVED UPON IT BY REGISTERED MAIL DIRECTED TO UNDERSIGNED AT ITS ADDRESS SET FORTH BELOW.

10.Covenants.  The Performance Guarantor covenants and agrees that it will, unless this Undertaking shall have terminated in accordance with Section 6 hereof:

(a)comply, and cause each Seller to comply, with all applicable laws, rules, regulations and orders, except to the extent any non-compliance would not reasonably be expected to have a Material Adverse Effect;

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(b)at all times maintain its fundamental business and preserve and keep in full force and effect its corporate existence and all material rights, franchises and licenses necessary or desirable in the normal conduct of its business, in each case as applicable, except a Permitted Transaction and except if, in the reasonable business judgment of Performance Guarantor, it is in the business interest of the Performance Guarantor not to preserve and maintain such rights (charter and statutory), franchises and licenses, and such failure to preserve the same would not reasonably be expected to have a Material Adverse Effect.  As used herein, “Permitted Transaction” means, in the case of any consolidation or merger involving the Performance Guarantor, either (i) the Performance Guarantor is the surviving entity or (ii) the Person surviving or resulting from such consolidation or merger shall have assumed the obligations of the Performance Guarantor hereunder in an agreement or instrument reasonably satisfactory in form and substance to the Administrative Agent and such surviving corporation shall have delivered, for the benefit of Administrative Agent, such other documents as may reasonably be requested, including, without limitation, information in respect of “know your customer” and similar requirements, an incumbency certificate and an opinion of nationally recognized independent counsel, or other independent counsel reasonably satisfactory to the Administrative Agent, to the effect that all agreements or instruments effecting such assumption are enforceable in accordance with their terms and comply with the terms hereof; and

(c)keep in all material respects, proper books of record and account in accordance with GAAP. 

11.Taxes. 

(a)All payments to be made by the Performance Guarantor under this Undertaking shall be made free and clear of and without deduction for or on account of all Taxes, except to the extent required by applicable law.  All Taxes required to be deducted or withheld from any amounts paid or payable by the Performance Guarantor under this Undertaking, if any, shall be paid by the Performance Guarantor to the applicable Governmental Authority within the time allowed under the relevant law.  In addition, if any Taxes or amounts in respect of Taxes must be deducted from any amounts payable by the Performance Guarantor under this Undertaking and such Tax is an Indemnified Tax, the Performance Guarantor shall pay such additional amounts as may be necessary to ensure that the Administrative Agent and the Purchasers receive a net amount equal to the full amount which the Administrative Agent and the Purchasers would have received had payment not been made subject to deduction of Tax by the Performance Guarantor.  Within thirty (30) days of each payment to the relevant Governmental Authority by the Performance Guarantor under this Section 11(a) of Tax or in respect of Taxes, the Performance Guarantor shall deliver to the Administrative Agent and the Purchasers if the same is available an original receipt, certified copy or other appropriate evidence issued by the Governmental Authority to whom the payment was made that the Tax has been duly remitted to the appropriate authority.  If the Administrative Agent or any Purchaser determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been paid additional amounts pursuant to this Section 11(a), such Person shall pay to the Performance Guarantor an amount equal to such refund (but only to the extent of additional amounts made under this Section 11(a) with respect to the Taxes giving rise to such refund), net of all reasonable out-of-pocket expenses of such Person and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund); provided, however, that nothing contained in this Undertaking shall 

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interfere with the right of the Administrative Agent and each Purchaser to arrange its Tax affairs in whatever manner it thinks fit and, in particular, none of the Administrative Agent or any Purchaser shall be under any obligation to claim credit, relief, remission, repayment or other benefit from or against its corporate profits or similar Tax liability in respect of the amount of any deduction in priority to any other claims, reliefs, credits or deductions available to it, nor shall the Performance Guarantor be entitled to make any enquiries of the Administrative Agent or any Purchaser in relation to such Person’s Tax affairs.  The Administrative Agent and each Purchaser shall (if and to the extent that it is entitled to do so under applicable law) submit in duplicate to the Performance Guarantor prior to the date of the first payment by the Performance Guarantor to the Administrative Agent or such Purchaser, as applicable, duly completed and signed copies appropriate Internal Revenue Service forms claiming complete or partial exemption from withholding on all amounts (to which such withholding would otherwise apply) to be received by the Administrative Agent or such Purchaser, as applicable, including fees, from the Performance Guarantor pursuant to this Undertaking.  In addition and from time to time the Administrative Agent and each Purchaser shall (if and to the extent that it is entitled to do so under applicable law) submit to the Performance Guarantor such additional duly completed and signed copies of one or the other of such forms (or such successor forms as shall be adopted from time to time by the relevant United States taxation authorities) and any additional information as may be required under then current United States law, regulations or any income tax treaty to which the United States is a party to claim the inapplicability of, or exemption or partial exemption from, United States withholding (including backup withholding) taxes on payments in respect of all amounts (to which such withholding would otherwise apply) to be received by the Administrative Agent or such Purchaser including fees, from the Performance Guarantor pursuant to this Undertaking.  The Administrative Agent and each Purchaser agree that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Performance Guarantor in writing of its legal inability to do so.

(b)All stamp, documentary, registration or other like duties or Taxes (excluding Excluded Taxes and any Taxes that are the subject of Section 11(a)), including Taxes and any penalties, additions, fines, surcharges or interest relating thereto, or any notarial fees which are imposed or chargeable on or in connection with this Undertaking or any other document executed pursuant hereto shall be paid by the Performance Guarantor, it being understood and agreed that the Administrative Agent and each Purchaser shall be entitled but not obligated to pay any such duties or Taxes (whether or not they are its primary responsibility), and the Performance Guarantor shall on demand indemnify the Administrative Agent or such Purchaser, as applicable, against those duties or Taxes and against any reasonable costs and expenses so incurred by it in discharging them.  Without prejudice to the survival of any other provision hereof, the terms of this Section 11(b) shall survive the termination of this Undertaking and payment of all other amounts payable hereunder.

12.PATRIOT Act.  The Administrative Agent hereby notifies the Performance Guarantor that pursuant to the requirements of the USA PATRIOT Improvement and Reauthorization Act, Title III of Pub. L. 109-177 (signed into law March 9, 2009), as amended from time to time (the “PATRIOT Act”), it and each Purchaser is required to obtain, verify and record information that identifies the Performance Guarantor, which information includes the name and address of the Performance Guarantor and other information that will allow it and such 

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Purchaser to identify the Performance Guarantor in accordance with the PATRIOT Act. Promptly following any reasonable request therefor, the Performance Guarantor shall deliver to the Administrative Agent and each Purchaser all documentation and other information required by bank regulatory authorities requested by the Administrative Agent or any Purchaser for purposes of compliance with applicable “know your customer” requirements under the PATRIOT Act, the Beneficial Ownership Rule or other applicable anti-money laundering laws, rules and regulations.

13.Confidentiality and Notice Provisions.  The provisions set out in Section 13.4 (Notice, Addresses) and Section 13.19 (Confidentiality) of the Agreement shall be expressly and specifically incorporated into this Undertaking, as though they were set out in full in this Undertaking.  In the event of any conflict between the provisions of this Undertaking and Section 14.4 (Notice, Addresses) or Section 13.19 (Confidentiality) of the Agreement, the provisions of this Undertaking shall prevail.

14.All notices, requests and demands given or made under this Undertaking to the Performance Guarantor shall be given or made in writing and unless otherwise stated shall be made by email or letter using the address as specified below:

CACI International Inc. 
1100 North Glebe Road

Arlington, VA 22201

Attn:        Thomas Mutryn

Email:      tmutryn@caci.com

 

15.Defined Terms.  Capitalized terms used herein but not defined shall have the meanings assigned to such terms in the Agreement.

[Signature pages follow.]

 

 

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A copy of this Undertaking shall be effective as an original as provided in the Agreement.

 

		
	
 
	
CACI INTERNATIONAL INC

 

By/s/ Thomas A. Mutryn___________
Name: Thomas A. Mutryn
Title: Executive Vice President, Chief Financial Officer and Treasurer

 

 

 

Signature Page to Performance UndertakingExhibit 10.1

 

LOAN
AND SECURITY AGREEMENT

 

This
LOAN AND SECURITY AGREEMENT (this “Agreement”) dated as of December 28, 2018 (the “Effective
Date”) is between TREND DISCOVERY SPV I, LLC, a Delaware limited liability company (“Lender”),
and ECOARK HOLDINGS, INC., a Nevada corporation (“Borrower”), and provides the terms on which Lender
shall lend to Borrower, and Borrower shall repay Lender. The parties agree as follows:

 

1
ACCOUNTING AND OTHER TERMS

 

Accounting
terms not defined in this Agreement shall be construed following GAAP. Capitalized terms not otherwise defined in this Agreement
shall have the meanings set forth in Section 13 of this Agreement. All other terms contained in this Agreement, unless otherwise
indicated, shall have the meanings provided by the Code to the extent such terms are defined therein.

 

2
LOAN AND TERMS OF PAYMENT

 

2.1 Availability.
On the Effective Date, Lender agrees, subject to the terms and conditions and relying upon the representations and warranties
set forth in this Agreement and within the limits hereof, to make one or more loans (each a “Loan”, and collectively
the “Loans”) to Borrower, and Borrower may make a request for a Loan or Loans from Lender, at any one time
and from time to time, from the date hereof until the earlier of (i) DEMAND by Lender or (ii) December 27, 2020 or the earlier
termination of this Agreement pursuant to the terms hereof (the “Maturity Date”), in total not in excess of
a principal amount of $1,000,000 in the aggregate at any one time outstanding (collectively, the “Credit”).
If prepaid, the Loans may not be re-borrowed.

 

2.2 Promissory
Note. The obligation of the Borrower to repay the original principal amount of each Loan and to pay interest on the outstanding
principal amount of each Loan shall be evidenced by a Demand Note executed by the Borrower in the form of Exhibit C hereto
(the “Note”). The Lender shall set forth on the schedule attached to and made a part of the Note, on any separate
similar schedule or on any continuation of such attached schedule or of any such separate similar schedule annotations evidencing
the date and original principal amount of each Loan and the date and amount of each payment to be applied to the outstanding principal
amount of the Note. The outstanding principal amount set forth on such attached schedule, on any such separate similar schedule
or on any such continuation shall be presumptive evidence of the outstanding principal amount of the Note and of the aggregate
outstanding principal amounts of all Loans. No failure by the Lender to make, and no error by the Lender in making, any annotation
on such attached schedule, on any such separate similar schedule or on any such continuation shall affect the Borrower's obligation
to repay the original principal amount of each Loan, interest on the outstanding principal amount of each Loan or any other of
the Borrower's obligations pursuant to this Agreement.

 

2.3 Requests
for Loans. For each Loan, Borrower shall submit to Lender a Compliance Certificate and a Notice of Loan at least five (5)
Business Days (but not more than sixty (60) Business Days) prior to the date of such Loan, specifying the amount of the requested
Loan and the date of the requested draw.

 

2.4 Incremental
Loans. Provided that no Event of Default exists, the Borrower may, from time to time, by written notice to Lender elect to
request an increase in the loan commitment for Loans under the Credit hereunder in an aggregate amount (for all such requests)
not to exceed $9,000,000. Each such notice shall specify the date on which the Borrower proposes that the increase shall be effective
and the amount of the proposed increase being requested (which shall be a minimum of $1,000,000). The Lender may elect or decline,
in its sole discretion, to provide any such increase requested pursuant to this Section 2.4.

 

2.5 Repayment;
Prepayment; Interest Payments.

 

(a) 
All outstanding principal and accrued and unpaid interest under each Loan, and all other outstanding Obligations with respect
to each Loan, are due and payable in full upon the earlier of (i) on DEMAND by Lender, or (ii) the Maturity Date. Borrower shall
have the option to prepay all or any portion of any outstanding Loans at any time, in whole or in part. In the event of any such
repayment, Borrower may not re-borrower under any such Loans.

 

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(b) Commencing
on June 30, 2019 and continuing every six months thereafter until the Maturity Date, Borrower shall make biannual payments of
accrued interest, in arrears, on the principal amount of all outstanding Loans, at the applicable rate set forth in Section 2.6
Commencing on June 30, 2019 and continuing every six months thereafter until the Maturity Date, Borrower shall make biannual payments
of accrued interest, in arrears, on the principal amount of all outstanding Loans, at the applicable rate set forth in Section
2.6.

 

2.6 Interest.

 

(a) Interest
Rate. The outstanding principal amount of each Loan shall bear interest at a rate per annum equal to twelve percent (12%).

 

(b) Default
Rate. Upon the occurrence and during the continuance of an Event of Default or following acceleration of the Credit, the aggregate
outstanding principal amount of all Loans shall bear interest at the Default Rate.

 

(c) Computation;
365-Day Year. Interest with respect to the Term Loan shall be computed on the basis of a 365-day year for the actual number
of days elapsed.

 

2.7 Application
of Payments; Payment Method. All payments to be made by Borrower under any Loan Document in respect of the Loans shall be
made in immediately available funds in Dollars, without setoff or counterclaim, before 3:00 p.m. Eastern time on the date when
due. Payments of principal and/or interest received after 3:00 p.m. Eastern time are considered received at the opening of business
on the next Business Day. When a payment is due on a day that is not a Business Day, the payment shall be due the next Business
Day, and additional fees or interest, as applicable, shall continue to accrue until paid. As to regularly scheduled payments,
Borrower agrees to authorize Lender to initiate electronic debit (ACH) entries at Borrower’s account at Bank of America
which has been designated by Borrower and to credit such electronic ACH payments/transfers to the Term Loan.

 

2.8 Commitment
Fees. Borrower shall pay to Lender a commitment fee on the principal amount of each Loan
requested hereunder in the amount of 3.5% of the amount thereof (each a “Commitment Fee”).

 

2.9 Lender
Expenses. Borrower shall pay all expenses of Lender (including reasonable attorneys’ fees and expenses, plus expenses,
for documentation and negotiation of this Agreement, accounting, tax preparation, and other reasonable professional expenses)
payable under this Agreement and incurred through and after the Effective Date, when due.

 

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Conditions Precedent to EACH Credit Extension.

 

Lender’s
obligation to make any Loan is subject to the conditions precedent that lender shall have received, in form and substance satisfactory
to lender, such documents, and completion of such other matters, as lender may reasonably deem necessary or appropriate, including,
without limitation:

 

(a) Receipt
of all documents and information reasonably required by Lender to perform its legal and collateral due diligence to Lender’s
satisfaction;

 

(b) Receipt
of Borrower’s and each Guarantor’s Operating Documents and a good standing certificate of Borrower and each Guarantor
certified by the Secretary of State of the state of formation, as of a date no earlier than thirty (30) days prior to the Effective
Date;

 

(c) Execution
and delivery of the Loan Documents;

 

(d) Grant
of a perfected first priority security interest in all of the Collateral;

 

(e) Receipt
of a duly executed Compliance Certificate and Notice of Loan;

 

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(f) Receipt
of the Commitment Fee pursuant to the terms and conditions of Section 2.8 of this Agreement;

 

(g) Timely
receipt of payment of all fees pursuant to the terms and conditions of the Fee Letter; and

 

(h) A
legal opinion from Borrower’s counsel in form and substance satisfactory to Lender.

 

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CREATION OF SECURITY INTEREST

 

4.1 Grant
of Security Interest. Borrower hereby grants Lender, to secure the payment and performance in full of all of the Obligations,
a continuing security interest in, and pledges to Lender, the Collateral, wherever located, whether now owned or hereafter acquired
or arising, and all proceeds and products thereof. Borrower represents, warrants, and covenants that the security interest granted
herein shall be and shall at all times continue to be a first priority perfected security interest in the Collateral subject only
to Permitted Liens that are permitted to have priority over Lender’s Liens hereunder. If this Agreement is terminated, Lender’s
Lien in the Collateral shall continue until the Obligations (other than inchoate indemnity obligations) are satisfied in full,
and at such time, Lender shall, at Borrower’s sole cost and expense, terminate its security interest in the Collateral and
all rights therein shall revert to Borrower. Notwithstanding the foregoing, Lender’s Lien and security interest in the Collateral
shall be subject to all agreements dated before the Closing Date that grant any Lien or security interest in the Zest Litigation
or any recovery from or proceeds of the Zest Litigation.

 

4.2 Authorization
to File Financing Statements. Borrower hereby authorizes Lender to file financing statements, without notice to Borrower,
with all appropriate jurisdictions to perfect or protect Lender’s interest or rights hereunder, including a notice that
any disposition of the Collateral, by either Borrower or any other Person, shall be deemed to violate the rights of Lender under
the Code. Any such financing statements may indicate the Collateral as “all assets of the Debtor” or words of similar
effect, or as being of an equal or lesser scope, or with greater detail, all in Lender’s discretion.

 

5
REPRESENTATIONS AND WARRANTIES

 

Borrower
represents and warrants as follows:

 

5.1 Due
Organization and Authorization. Borrower and each of its Subsidiaries are duly existing and in good standing as Registered
Organizations in their respective jurisdictions of formation and are qualified and licensed to do business and are in good standing
in any other jurisdiction in which the conduct of their respective business or ownership of property requires that they be qualified
except where the failure to do so could not reasonably be expected to have a material adverse effect on Borrower’s business.
The execution, delivery and performance by Borrower of the Loan Documents to which it is a party have been duly authorized, and
do not (i) conflict with any of Borrower’s organizational documents, (ii) contravene, conflict with, constitute a default
under or violate any material Requirement of Law, (iii) contravene, conflict or violate any applicable order, writ, judgment,
injunction, decree, determination or award of any Governmental Authority by which Borrower or any of its Subsidiaries or any of
their property or assets may be bound or affected, (iv) require any action by, filing, registration, or qualification with, or
Governmental Approval from, any Governmental Authority (except such Governmental Approvals which have already been obtained and
are in full force and effect), or (v) constitute an event of default under any material agreement by which Borrower is bound.
Borrower is not in default under any agreement to which it is a party or by which it is bound in which the default could have
a material adverse effect on Borrower’s business.

 

5.2 Collateral.
Borrower has good title to, has rights in, and the power to transfer, each item of the Collateral upon which it purports to grant
a Lien hereunder, free and clear of any and all Liens except Permitted Liens.

 

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5.3 Intellectual
Property. Borrower and each of its Subsidiaries own, or possess the right to use, all of the Intellectual Property that are
reasonably necessary for the operation of their respective businesses, without conflict with the rights of any other Person, and
Schedule 5.3 sets forth a complete and accurate list of all such Intellectual Property owned or used by each Loan Party and each
of its Subsidiaries. No slogan or other advertising device, product, process, method, substance, part or other material now employed,
or now contemplated to be employed, by the Borrower or any of its Subsidiaries infringes upon any rights held by any other Person.
No material claim or litigation regarding any of the foregoing is pending or threatened. As of the Effective Date, Borrower owns
or has good and marketable title to all Patents listed on Schedule 5.3.

 

5.4 Litigation.
Other than the Zest Litigation, there are no actions or proceedings pending or, to the knowledge of Borrower, threatened in writing
by or against Borrower or any Subsidiary in which an adverse decision could reasonably be expected to cause a Material Adverse
Change. With respect to the Zest Litigation: (i) Borrower believes (and does not have, and has not been informed by any of its
Affiliates of, any belief to the contrary) that Zest’s claims are meritorious and have a reasonable basis in law, (ii) Zest
has the full power and authority to bring such claims, (iii) Borrower has not and has not permitted Zest to dispose of, transfer,
encumber or assign all or any portion of its claims (or any interest therein) or any proceeds thereof, whether by way of security,
subrogation, assignment to an insurer, or otherwise, (iv) Borrower has not and has not permitted Zest to set off or agree to set
off any amounts against Zest’s claims, and there exist no rights of set-off or similar rights against the Borrower or any
of its Subsidiaries that could permit any set-off of or counterclaim against such claims, and (v) Borrower is not aware (and has
not been informed by any of its Affiliates) of any Patents or applications therefore or other Intellectual Property that have
been, are likely to be, or should be asserted or claimed in connection with or in support of Zest’s claims except those
owned by Borrower or its Subsidiaries.

 

5.5 No
Material Deviation in Financial Statements and Deterioration in Financial Condition. The consolidated financial statements
for Borrower and any Subsidiary as of and for the fiscal years ended December 31, 2016 and December 31, 2017 and the first three
fiscal quarters for the fiscal year ended December 31, 2018 (the “Most Recent Financial Statements”) fairly
present in all material respects Borrower’s consolidated financial condition and Borrower’s consolidated results of
operations as of the dates thereof. There has not been any material deterioration in Borrower’s consolidated financial condition
since the date of the Most Recent Financial Statements.

 

5.6 Solvency.
The fair salable value of Borrower’s assets (including goodwill minus disposition costs) exceeds the fair value of its liabilities;
Borrower is not left with unreasonably small capital after giving effect to the transactions in this Agreement; and Borrower is
able to pay its debts (including trade debts) as they mature.

 

5.7 Regulatory
Compliance. Borrower is not an “investment company” or a company “controlled” by an “investment
company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of its important activities
in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors). Borrower has complied
in all material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws, ordinances or rules, the
violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower’s properties or assets
have been used by Borrower or, to the best of Borrower’s knowledge, by previous Persons, in disposing, producing, storing,
treating, or transporting any hazardous substance other than legally. Borrower has obtained all consents, approvals and authorizations
of, made all declarations or filings with, and given all notices to, all Governmental Authorities that are necessary to continue
their respective businesses as currently conducted.

 

5.8 Subsidiaries.
Borrower does not own any stock, partnership interest or other equity securities except for (i) the stock, partnership interest
or other equity securities of its Subsidiaries set forth on Schedule 5.8 and (ii) Permitted Investments.

 

5.9 Tax
Returns and Payments; Pension Contributions. Borrower has timely filed all required tax returns and reports, and Borrower
has timely paid all foreign, federal, state and local taxes, assessments, deposits and contributions owed by Borrower (except
for taxes being contested in good faith by Borrower). Borrower is unaware of any claims or adjustments proposed for any of Borrower’s
prior tax years which could result in additional taxes becoming due and payable by Borrower. Borrower has paid all amounts necessary
to fund all present pension, profit sharing and deferred compensation plans in accordance with their terms, and Borrower has not
withdrawn from participation in, and has not permitted partial or complete termination of, or permitted the occurrence of any
other event with respect to, any such plan which could reasonably be expected to result in any liability of Borrower, including
any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.

 

    4

     

    

 

5.10Brokerage
Fees. Borrower has not engaged a broker nor does it owe any brokerage fees in connection with any debt financing or the transactions
contemplated by this Agreement.

 

6
AFFIRMATIVE COVENANTS

 

Borrower
shall do all of the following:

 

6.1 Government
Compliance

 

(a) Maintain
its and all its Subsidiaries’ legal existence and good standing in their respective jurisdictions of formation and maintain
qualification in each jurisdiction in which the failure to so qualify would reasonably be expected to have a material adverse
effect on Borrower’s business or operations. Borrower shall comply, and have each Subsidiary comply, with all laws, ordinances
and regulations to which it is subject, noncompliance with which could have a material adverse effect on Borrower’s business.

 

(b) Obtain
all of the Governmental Approvals necessary for the performance by Borrower of its obligations under the Loan Documents to which
it is a party and the grant of a security interest to Lender in all of its property. Borrower shall promptly provide copies of
any such obtained Governmental Approvals to Lender.

 

6.2 Financial
Statements, Reports, Certificates

 

(a) Deliver
to Lender: (i) as soon as available, but no later than thirty (30) days after the last day of each fiscal quarter, quarterly financial
statements; (ii) as soon as available, but no later than one hundred twenty (120) days after the last day of Borrower’s
fiscal year, audited consolidated financial statements prepared under GAAP, consistently applied, together with an unqualified
opinion on the financial statements from an independent certified public accounting firm reasonably acceptable to Lender; (iii)
within five (5) days of filing, copies of all statements, reports and notices made available to Borrower’s security holders
and all reports on Form 10-K, 10-Q and 8-K filed with the SEC; (iv) a prompt report of any legal actions pending or threatened
against Borrower or any Subsidiary that could result in damages or costs to Borrower or any Subsidiary of One Hundred Thousand
Dollars ($100,000.00) or more; and (v) at least annually, as soon as available, but no later than ten (10) days after approval
by Borrower’s board of directors, and contemporaneously with any updates or amendments thereto, annual financial projections
and operating budgets for the following fiscal year approved by Borrower’s board of directors, together with company prepared
consolidated balance sheets and income statements and any related business forecasts used in the preparation of such annual financial
plans, operating budgets and projections.

 

(b) Allow
Lender to inspect the Collateral and audit and copy Borrower’s Books upon reasonable notice to Borrower. The foregoing inspections
and audits shall be at Borrower’s expense.

 

(c) Provide
Lender, promptly upon receipt, with a copy of each filing with or other pleading or decision filed or received in the Zest Litigation,
unless otherwise restricted by the supervising court.

 

6.3 Taxes.
Make, and cause each Subsidiary to make, timely payment of all foreign, federal, state, and local taxes or assessments (other
than taxes and assessments which Borrower is contesting in good faith, with adequate reserves maintained in accordance with GAAP)
and will deliver to Lender, on demand, appropriate certificates attesting to such payments.

 

6.4 Insurance.
Keep its business and the Collateral insured for risks and in amounts standard for companies in Borrower’s industry and
location. All property policies shall have a loss payable endorsement showing Lender as a loss payee and waive subrogation against
Lender, and all liability policies shall show, or have endorsements showing, Lender as an additional insured. At Lender’s
request, Borrower shall deliver certified copies of policies and evidence of all premium payments. If Borrower fails to obtain
insurance as required under this Section 6.4 or to pay any amount or furnish any required proof of payment to third persons and
Lender, Lender may make all or part of such payment or obtain such insurance policies required in this Section 6.4, and take any
action under the policies Lender deems prudent.

 

    5

     

    

 

6.5 Protection
of Intellectual Property Rights

 

(a) (i)
Protect, defend and maintain the validity and enforceability of its Intellectual Property; (ii) promptly advise Lender in writing
of material infringements of its Intellectual Property; and (iii) not allow any Intellectual Property material to Borrower’s
business to be abandoned, forfeited or dedicated to the public without Lender’s written consent.

 

(b) Provide
written notice to Lender within thirty (30) days of entering or becoming bound by any Restricted License (other than over-the-counter
software that is commercially available to the public). Borrower shall take such steps as Lender requests to obtain the consent
of, or waiver by, any person whose consent or waiver is necessary for (i) any Restricted License to be deemed “Collateral”
and for Lender to have a security interest in it that might otherwise be restricted or prohibited by law or by the terms of any
such Restricted License, whether now existing or entered into in the future, and (ii) Lender to have the ability in the event
of a liquidation of any Collateral to dispose of such Collateral in accordance with Lender’s rights and remedies under this
Agreement and the other Loan Documents.

 

6.6 Litigation
Cooperation. From the Effective Date and continuing through the termination of this Agreement, make available to Lender, without
expense to Lender, Borrower and its officers, employees and agents and Borrower’s Books, to the extent that Lender may deem
them reasonably necessary to prosecute or defend any third-party suit or proceeding instituted by or against Lender with respect
to any Collateral or relating to Borrower.

 

6.7 Use
of Proceeds. Use the proceeds of the Loans for working capital and general corporate purposes.

 

6.8 Further
Assurances. Execute any further instruments and take further action as Lender reasonably requests to perfect or continue Lender’s
Lien in the Collateral or to effect the purposes of this Agreement.

 

7
NEGATIVE COVENANTS

 

Borrower
shall not do any of the following without Lender’s prior written consent:

 

7.1 Dispositions.
Convey, sell, lease, transfer, assign, or otherwise dispose of (collectively a “Transfer”), or permit any of
its Subsidiaries to Transfer, all or any material part of its business or property, except for Transfers (a) of Inventory in the
ordinary course of business; (b) of worn-out or obsolete Equipment; and (c) in connection with Permitted Liens and Permitted Investments.

 

7.2 Changes
in Business, Management, Ownership, or Business Locations. (a) Engage in or permit any of its Subsidiaries to engage in any
business other than the businesses currently engaged in by Borrower and such Subsidiary, as applicable, or reasonably related
thereto; or (b) liquidate or dissolve. Borrower shall not, without at least thirty (30) days prior written notice to Lender: (1)
add any new offices or business locations, including warehouses (unless such new offices or business locations contain less than
Five Thousand Dollars ($5,000.00) in Borrower’s assets or property), (2) change its jurisdiction of organization, (3) change
its organizational structure or type, (4) change its legal name, or (5) change any organizational number (if any) assigned by
its jurisdiction of organization.

 

7.3 Mergers
or Acquisitions. Merge or consolidate, or permit any of its Subsidiaries to merge or consolidate, with any other Person, or
acquire, or permit any of its Subsidiaries to acquire, all or substantially all of the capital stock or property of another Person.
A Subsidiary may merge or consolidate into another Subsidiary or into Borrower.

 

7.4 Indebtedness.
Create, incur, assume, or be liable for any Indebtedness, or permit any Subsidiary to do so, other than Permitted Indebtedness.

 

    6

     

    

 

7.5 Encumbrance.
Create, incur, allow, or suffer any Lien on any of its property, or assign or convey any right to receive income, including the
sale of any Accounts, or permit any of its Subsidiaries to do so, except for Permitted Liens, or permit any Collateral not to
be subject to the security interest granted herein, or enter into any agreement, document, instrument or other arrangement (except
with or in favor of Lender) with any Person which directly or indirectly prohibits or has the effect of prohibiting Borrower or
any Subsidiary from assigning, mortgaging, pledging, granting a security interest in or upon, or encumbering any of Borrower’s
or any Subsidiary’s Intellectual Property, except as is otherwise permitted in Section 7.1 of this Agreement and the definition
of “Permitted Liens” herein.

 

7.6 Distributions;
Investments. (a) Directly or indirectly acquire or own any Person, or make any Investment in any Person, other than Permitted
Investments, or permit any of its Subsidiaries to do so; or (b) pay any dividends or make any distribution or payment or redeem,
retire or purchase any capital stock other than the redemption of shares held by former employees of Borrower in accordance with
existing or customary contractual commitments.

 

7.7 Transactions
with Affiliates. Directly or indirectly enter into or permit to exist any material transaction with any Affiliate of Borrower,
except for transactions that are in the ordinary course of Borrower’s business, upon fair and reasonable terms that are
no less favorable to Borrower than would be obtained in an arm’s length transaction with a non-affiliated Person.

 

7.8 Compliance.
Become an “investment company” or a company controlled by an “investment
company”, under the Investment Company Act of 1940, as amended, or undertake as one of its important activities extending
credit to purchase or carry margin stock (as defined in Regulation U of the Board of Governors of the Federal Reserve System),
or use the proceeds of any Credit Extension for that purpose; fail to meet the minimum funding requirements of ERISA, permit a
Reportable Event or Prohibited Transaction, each as defined in ERISA, to occur; fail to comply with the Federal Fair Labor Standards
Act or violate any other law or regulation, if the violation could reasonably be expected to have a material adverse effect on
Borrower’s business, or permit any of its Subsidiaries to do so; withdraw or permit any Subsidiary to withdraw from participation
in, permit partial or complete termination of, or permit the occurrence of any other event with respect to, any present pension,
profit sharing and deferred compensation plan which could reasonably be expected to result in any liability of Borrower, including
any liability to the Pension Benefit Guaranty Corporation or its successors or any other governmental agency.

 

7.9 Material
Agreements. Enter into, terminate, amend, restate or otherwise alter the terms of any material
agreements to which Borrower or any of its Subsidiaries is a party, except in the ordinary course of business, including but not
limited to any litigation funding or investment agreements.

 

8
EVENTS OF DEFAULT

 

Any
one of the following shall constitute an event of default (an “Event of Default”) under this Agreement:

 

8.1 Payment
Default. Borrower fails to pay any principal or interest on the Loans within three (3) days of the due date.

 

8.2 Covenant
Default. Borrower fails or neglects to perform any obligation in Section 2.9 or Section 6 of this Agreement or violates any
covenant in Section 7 of this Agreement or fails or neglects to perform, keep, or observe any other term, provision, condition,
covenant or agreement contained in this Agreement, any Loan Documents and as to any default under such other term, provision,
condition, covenant or agreement that can be cured, has failed to cure the default within ten (10) days after the occurrence thereof;
provided, however, grace and cure periods provided under this Section 8.2 shall not apply to financial covenants or any other
covenants that are required to be satisfied, completed or tested by a date certain.

 

    7

     

    

 

8.3 Material
Adverse Change. A Material Adverse Change occurs.

 

8.4 Attachment;
Levy; Restraint on Business. (i) Any material portion of Borrower’s assets
is attached, seized, levied on, or comes into possession of a trustee or receiver, or (ii) any court order enjoins, restrains,
or prevents Borrower from conducting any material part of its business.

 

8.5 Insolvency.
(a) Borrower is unable to pay its debts (including trade debts) as they become due or otherwise becomes insolvent; (b) Borrower
begins an Insolvency Proceeding; or (c) an Insolvency Proceeding is begun against Borrower and not dismissed or stayed within
thirty (30) days.

 

8.6 Other
Agreements. There is, under any agreement to which Borrower is a party with a third party or parties, (a) any default resulting
in a right by such third party or parties, whether or not exercised, to accelerate the maturity of any Indebtedness in an amount
individually or in the aggregate in excess of Fifty Thousand Dollars ($50,000.00); or (b) any default by Borrower, the result
of which could result in a Material Adverse Change to Borrower’s business.

 

8.7 Judgments.
One or more final judgments, orders, or decrees for the payment of money in an amount, individually or in the aggregate, of at
least Fifty Thousand Dollars ($50,000.00) (not covered by independent third-party insurance as to which liability has been accepted
by such insurance carrier) shall be rendered against Borrower and the same are not, within ten (10) days after the entry thereof,
discharged or execution thereof stayed or bonded pending appeal, or such judgments are not discharged prior to the expiration
of any such stay.

 

8.8 Misrepresentations.
Borrower or any Person acting for Borrower makes any representation, warranty, or other statement now or later in this Agreement,
any Loan Document or in any writing delivered to Lender or to induce Lender to enter this Agreement or any Loan Document, and
such representation, warranty, or other statement is incorrect in any material respect when made.

 

9
LENDER’S RIGHTS AND REMEDIES

 

9.1 Rights
and Remedies. When an Event of Default occurs and continues beyond any applicable grace period Lender may, without notice
or demand, do any or all of the following:

 

(a) declare
all Obligations immediately due and payable (but if an Event of Default described in Section 8.5 of this Agreement occurs, all
Obligations are immediately due and payable without any action by Lender); and

 

(b) exercise
all rights and remedies available to Lender under the Loan Documents or at law or equity, including all remedies provided under
the Code (including disposal of the Collateral pursuant to the terms thereof).

 

Notwithstanding
the inclusion of Events of Default hereunder, the Credit and the principal amount of all Loans, together with all accrued and
unpaid interest thereon, shall be due and payable at all times on DEMAND.

 

9.2 Protective
Payments. If Borrower fails to obtain the insurance called for by Section 6.4 of this Agreement or fails to pay any premium
thereon or fails to pay any other amount which Borrower is obligated to pay under this Agreement or any other Loan Document, Lender
may obtain such insurance or make such payment, and all amounts so paid by Lender immediately due and payable to Lender by Borrower,
bearing interest at the then highest rate applicable to the Obligations, and secured by the Collateral. Lender will make reasonable
efforts to provide Borrower with notice of Lender obtaining such insurance at the time it is obtained or within a reasonable time
thereafter. No payments by Lender are deemed an agreement to make similar payments in the future or Lender’s waiver of any
Event of Default.

 

9.3 Lender’s
Liability for Collateral. So long as Lender complies with reasonable lending practices regarding the safekeeping of the Collateral
in the possession or under the control of Lender, Lender shall not be liable or responsible for: (a) the safekeeping of the Collateral;
(b) any loss or damage to the Collateral; (c) any diminution in the value of the Collateral; or (d) any act or default of any
carrier, warehouseman, bailee, or other Person. Borrower bears all risk of loss, damage or destruction of the Collateral.

 

    8

     

    

 

9.4 No
Waiver; Remedies Cumulative. Lender’s failure, at any time or times, to require strict performance by Borrower of any
provision of this Agreement or any other Loan Document shall not waive, affect, or diminish any right of Lender thereafter to
demand strict performance and compliance herewith or therewith. No waiver hereunder shall be effective unless signed by the party
granting the waiver and then is only effective for the specific instance and purpose for which it is given. Lender’s rights
and remedies under this Agreement and the other Loan Documents are cumulative. Lender has all rights and remedies provided under
the Code, by law, or in equity. Lender’s exercise of one right or remedy is not an election and shall not preclude Lender
from exercising any other remedy under this Agreement or other remedy available at law or in equity, and Lender’s waiver
of any Event of Default is not a continuing waiver. Lender’s delay in exercising any remedy is not a waiver, election, or
acquiescence.

 

9.5 Demand
Waiver. Borrower waives demand, notice of default or dishonor, notice of payment and nonpayment, notice of any default, nonpayment
at maturity, release, compromise, settlement, extension, or renewal of accounts, documents, instruments, chattel paper, and guarantees
held by Lender on which Borrower is liable.

 

10
NOTICES

 

All
notices, consents, requests, approvals, demands, or other communication by any party to this Agreement or any other Loan Document
must be in writing and shall be deemed to have been validly served, given, or delivered: (a) upon the earlier of actual receipt
and three (3) Business Days after deposit in the U.S. mail, first class, registered or certified mail return receipt requested,
with proper postage prepaid; (b) upon transmission, when sent by electronic mail or facsimile transmission; (c) one (1) Business
Day after deposit with a reputable overnight courier with all charges prepaid; or (d) when delivered, if hand-delivered by messenger,
all of which shall be addressed to the party to be notified and sent to the address, facsimile number, or email address indicated
below. Lender or Borrower may change its mailing or electronic mail address or facsimile number by giving the other party written
notice thereof in accordance with the terms of this Section 10.

 

	If
    to Borrower:	Ecoark
    Holdings, Inc.
	 	1010
    NW J Street, Suite I
	 	Bentonville,
    AR 72712
	 	Attn:
    Randy May; Peter Mehring
	 	Fax:
	 	Email:
    rmay@ecoarkusa.com; pmehring@zestlabs.com
	 	 
	with
    a copy to:	Carmel,
    Milazzo & DiChiara LLP
	 	55
    West 39th Street, 18th Floor
	 	New
    York, New York 10018
	 	Attn:
    Peter DiChiara
	 	Fax:
	 	Email:
    pdichiara@cmdllp.com
	 	 
	If
    to Lender:	Trend
    Discovery SVP I, LLC
	 	7
        Wells Street, Suite 302D

        Saratoga
        Springs, New York 12866

	 	Attn:
    Brad Hoagland
	 	Fax:
	 	Email:
    bhoagland@trenddiscovery.com
	 	 
	with
    a copy to:	Lippes
    Mathias Wexler Friedman LLP
	 	50
    Fountain Plaza, Suite 1700
	 	Buffalo,
    New York 14202
	 	Attn:
    John J. Koeppel; Brian J. Bocketti
	 	Fax:
    (716) 853-5100
	 	Email:
    jkoeppel@lippes.com; bbocketti@lippesc.om

 

    9

     

    

 

11
CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

 

Except
as otherwise expressly provided in any of the Loan Documents, New York law governs the Loan Documents without regard to principles
of conflicts of law. Borrower and Lender each submit to the exclusive jurisdiction of the State and Federal courts in Erie County,
New York; provided, however, that nothing in this Agreement shall be deemed to operate to preclude Lender from bringing suit or
taking other legal action in any other jurisdiction to realize on the Collateral or any other security for the Obligations, or
to enforce a judgment or other court order in favor of Lender. Borrower expressly submits and consents in advance to such jurisdiction
in any action or suit commenced in any such court, and Borrower hereby waives any objection that it may have based upon lack of
personal jurisdiction, improper venue, or forum non conveniens and hereby consents to the granting of such legal or equitable
relief as is deemed appropriate by such court. Borrower hereby waives personal service of the summons, complaints, and other process
issued in such action or suit and agrees that service of such summons, complaints, and other process may be made by registered
or certified mail addressed to Borrower at the address set forth in, or subsequently provided to Borrower in accordance with,
Section 10 of this Agreement and that service so made shall be deemed completed upon the earlier to occur of Borrower’s
actual receipt thereof or three (3) days after deposit in the U.S. mails, proper postage prepaid.

 

BORROWER
AND LENDER EACH WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION ARISING OUT OF OR BASED UPON THIS AGREEMENT,
THE LOAN DOCUMENTS OR ANY CONTEMPLATED TRANSACTION, INCLUDING CONTRACT, TORT, BREACH OF DUTY AND ALL OTHER CLAIMS. THIS WAIVER
IS A MATERIAL INDUCEMENT FOR BOTH PARTIES TO ENTER INTO THIS AGREEMENT. EACH PARTY HAS REVIEWED THIS WAIVER WITH ITS COUNSEL.

 

12
GENERAL PROVISIONS

 

12.1 Successors
and Assigns. This Agreement binds and is for the benefit of the successors and permitted assigns of each party. Borrower may
not assign this Agreement or any rights or obligations under it without Lender’s prior written consent (which may be granted
or withheld in Lender’s discretion). Lender has the right, following the occurrence and during the continuance of an Event
of Default without the consent of or notice to Borrower, to sell, transfer, assign, negotiate, or grant participation in all or
any part of, or any interest in, Lender’s obligations, rights, and benefits under this Agreement and the other Loan Documents.

 

12.2 Indemnification.
Borrower agrees to indemnify, defend and hold Lender and its directors, officers, employees, agents, attorneys, or any other Person
affiliated with or representing Lender (each, an “Indemnified Person”) harmless against: (a) all obligations,
demands, claims, and liabilities (collectively, “Claims”) claimed or asserted by any other party in connection
with the transactions contemplated by the Loan Documents; and (b) all losses or expenses in any way suffered, incurred, or paid
by such Indemnified Person as a result of, following from, consequential to, or arising from transactions between Lender and Borrower
(including reasonable attorneys’ fees and expenses), except for Claims and/or losses directly caused by such Indemnified
Person’s fraud, gross negligence or willful misconduct.

 

12.3 Right
of Set-Off. Borrower hereby grants to Lender, a lien, security interest and right of setoff as security for all Obligations
to Lender, whether now existing or hereafter arising upon and against all deposits, credits, collateral and property, now or hereafter
in the possession, custody, safekeeping or control of Lender or any entity under the control of Lender or in transit to any of
them. At any time after the occurrence and during the continuance of an Event of Default or acceleration of the Credit, without
demand or notice, Lender may set off the same or any part thereof and apply the same to any liability or obligation of Borrower
even though unmatured and regardless of the adequacy of any other collateral securing the Obligations. ANY AND ALL RIGHTS TO REQUIRE
LENDER TO EXERCISE ITS RIGHTS OR REMEDIES WITH RESPECT TO ANY OTHER COLLATERAL WHICH SECURES THE OBLIGATIONS, PRIOR TO EXERCISING
ITS RIGHT OF SETOFF WITH RESPECT TO SUCH DEPOSITS, CREDITS OR OTHER PROPERTY OF BORROWER, ARE HEREBY KNOWINGLY, VOLUNTARILY AND
IRREVOCABLY WAIVED.

 

12.4 Severability
of Provisions. Each provision of this Agreement is severable from every other provision in determining the enforceability
of any provision.

 

    10

     

    

 

12.5 Amendments
in Writing; Waiver; Integration. No purported amendment or modification of any Loan Document, or waiver, discharge or termination
of any obligation under any Loan Document, shall be enforceable or admissible unless, and only to the extent, expressly set forth
in a writing signed by the party against which enforcement or admission is sought. Without limiting the generality of the foregoing,
no oral promise or statement, nor any action, inaction, delay, failure to require performance or course of conduct shall operate
as, or evidence, an amendment, supplement or waiver or have any other effect on any Loan Document. Any waiver granted shall be
limited to the specific circumstance expressly described in it, and shall not apply to any subsequent or other circumstance, whether
similar or dissimilar, or give rise to, or evidence, any obligation or commitment to grant any further waiver. The Loan Documents
represent the entire agreement about this subject matter and supersede prior negotiations or agreements. All prior agreements,
understandings, representations, warranties, and negotiations between the parties about the subject matter of the Loan Documents
merge into the Loan Documents.

 

12.6 Counterparts.
This Agreement may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, is an original, and all taken together, constitute one Agreement.

 

12.7 Survival.
All covenants, representations and warranties made in this Agreement continue in full force until this Agreement has terminated
pursuant to its terms and all Obligations (other than inchoate indemnity obligations and any other obligations which, by their
terms, are to survive the termination of this Agreement) have been paid in full and satisfied. Without limiting the foregoing,
except as otherwise provided in Section 4.1, the grant of a security interest by Borrower in Section 4.1 shall survive until the
termination of this Agreement. The obligation of Borrower in Section 12.2 of this Agreement to indemnify Lender shall survive
until the statute of limitations with respect to such claim or cause of action shall have run.

 

12.8 Electronic
Execution of Documents. The words “execution,” “signed,” “signature” and words of like
import in any Loan Document shall be deemed to include electronic signatures or the keeping of records in electronic form, each
of which shall be of the same legal effect, validity and enforceability as a manually executed signature or the use of a paper-based
recordkeeping systems, as the case may be, to the extent and as provided for in any applicable law, including, without limitation,
any state law based on the Uniform Electronic Transactions Act.

 

12.9 Captions.
The headings used in this Agreement are for convenience only and shall not affect the interpretation of this Agreement.

 

12.10 Construction
of Agreement. The parties mutually acknowledge that they and their attorneys have participated in the preparation and negotiation
of this Agreement. In cases of uncertainty this Agreement shall be construed without regard to which of the parties caused the
uncertainty to exist.

 

12.11 Relationship.
The relationship of the parties to this Agreement is determined solely by the provisions of this Agreement. The parties do not
intend to create any agency, partnership, joint venture, trust, fiduciary or other relationship with duties or incidents different
from those of parties to an arm’s-length contract.

 

12.12 Third
Parties. Nothing in this Agreement, whether express or implied, is intended to: (a) confer any benefits, rights or remedies
under or by reason of this Agreement on any persons other than the express parties to it and their respective permitted successors
and assigns; (b) relieve or discharge the obligation or liability of any person not an express party to this Agreement; or (c)
give any person not an express party to this Agreement any right of subrogation or action against any party to this Agreement.

 

12.13Assignment.
The Lender shall not transfer or assign any or all of the rights to the Loans without express written approval by Borrower,
even during the occurrence and continuation of an Event of Default.

 

13
DEFINITIONS

 

13.1 Definitions.
As used in the Loan Documents, the word “shall” is mandatory, the word “may” is permissive, the word “or”
is not exclusive, the words “includes” and “including” are not limiting, the singular includes the plural,
and numbers denoting amounts that are set off in brackets are negative. As used in this Agreement, the following capitalized terms
have the following meanings:

 

    11

     

    

 

“Account”
is any “account” as defined in the Code with such additions to such term as may hereafter be made, and includes, without
limitation, all accounts receivable and other sums owing to Borrower.

 

“Affiliate”
of any Person is a Person that owns or controls directly or indirectly the Person, any Person that controls or is controlled by
or is under common control with the Person, and each of that Person’s senior executive officers, directors, partners, and,
for any Person that is a limited liability company, that Person’s managers and members.

 

“Agreement”
is defined in the preamble of this Agreement.

 

“Borrower”
is defined in the preamble of this Agreement.

 

“Borrower’s
Books” are all Borrower’s books and records including ledgers, federal and state tax returns, records regarding
Borrower’s assets or liabilities, the Collateral, business operations or financial condition, and all computer programs
or storage or any equipment containing such information.

 

“Business
Day” is any day that is not a Saturday, Sunday, or legal holiday on which commercial banks are authorized or required
by law to be closed for business in New York, New York.

 

“Cash
Equivalents” means (a) marketable direct obligations issued or unconditionally guaranteed by the United States or any
agency or any State thereof having maturities of not more than one (1) year from the date of acquisition; (b) commercial paper
maturing no more than one (1) year after its creation and having the highest rating from either Standard & Poor’s Ratings
Group or Moody’s Investors Service, Inc.; and (c) certificates of deposit maturing no more than one (1) year after issue.

 

“Change
of Control” means any of the following (i) a sale or other disposition by Borrower of all or substantially all of its
assets; (ii) a merger or consolidation of Borrower into or with another person or entity, where the holders of Borrower’s
outstanding voting equity securities as of immediately prior to such merger or consolidation hold less than a majority of the
issued and outstanding voting equity securities of the successor or surviving person or entity as of immediately following the
consummation of such merger or consolidation; or (iii) any sale, in a single transaction or series of related transactions, by
the holders of Borrower’s outstanding voting equity securities, to one or more buyers, of such interests or securities,
where such holders do not, as of immediately following the consummation of such transaction(s), continue to hold at least a majority
of Borrower’s issued and outstanding voting equity securities (other than by the sale of Borrower’s equity securities
in a public offering or to venture capital investors).

 

“Claims”
is defined in Section 12.2 of this Agreement.

 

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

 

“Collateral”
is any and all properties, rights and assets of Borrower described on Exhibit A.

 

“Commitment
Fee” is defined in Section 2.8 of this Agreement.

 

“Compliance
Certificate” is attached as Exhibit B.

 

    12

     

    

 

“Contingent
Obligation” is, for any Person, any direct or indirect liability, contingent or not, of that Person for (a) any indebtedness,
lease, dividend, letter of credit or other obligation of another such as an obligation directly or indirectly guaranteed, endorsed,
co-made, discounted or sold with recourse by that Person, or for which that Person is directly or indirectly liable; (b) any obligations
for undrawn letters of credit for the account of that Person; and (c) all obligations from any interest rate, currency or commodity
swap agreement, interest rate cap or collar agreement, or other agreement or arrangement designated to protect a Person against
fluctuation in interest rates, currency exchange rates or commodity prices; but “Contingent Obligation” does not include
endorsements in the ordinary course of business. The amount of a Contingent Obligation is the stated or determined amount of the
primary obligation for which the Contingent Obligation is made or, if not determinable, the maximum reasonably anticipated liability
for it determined by the Person in good faith; but the amount may not exceed the maximum of the obligations under any guarantee
or other support arrangement.

 

“Copyrights”
are any and all copyright rights, copyright applications, copyright registrations and like protections in each work of authorship
and derivative work thereof, whether published or unpublished and whether or not the same also constitutes a trade secret.

 

“Default
Rate” is a per annum rate of interest equal to seventeen percent (17%).

 

“Dollars,”
“dollars” or use of the sign “$” means only lawful money of the United States and not any
other currency, regardless of whether that currency uses the “$” sign to denote its currency or may be readily converted
into lawful money of the United States.

 

“Effective
Date” is defined in the preamble hereof.

 

“Equipment”
is all “equipment” as defined in the Code with such additions to such term as may hereafter be made, and includes
without limitation all machinery, fixtures, goods, vehicles (including motor vehicles and trailers), and any interest in any of
the foregoing.

 

“ERISA”
is the Employee Retirement Income Security Act of 1974, and its regulations.

 

“Events
of Default” are set forth in Section 8 of this Agreement.

 

“Exchange
Act” is the Securities Exchange Act of 1934, as amended.

 

“Fee
Letter” is that certain fee letter agreement dated as of the date hereof by and between Borrower and Lender.

 

“GAAP”
is generally accepted accounting principles set forth in the opinions and pronouncements of the Accounting Principles Board of
the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards
Board or in such other statements by such other Person as may be approved by a significant segment of the accounting profession,
which are applicable to the circumstances as of the date of determination.

 

“Governmental
Approval” is any consent, authorization, approval, order, license, franchise, permit, certificate, accreditation, registration,
filing or notice, of, issued by, from or to, or other act by or in respect of, any Governmental Authority.

 

“Governmental
Authority” is any nation or government, any state or other political subdivision thereof, any agency, authority, instrumentality,
regulatory body, court, central Lender or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative
functions of or pertaining to government, any securities exchange and any self-regulatory organization.

 

“Guarantor”
means Zest.

 

    13

     

    

 

“Indebtedness”
is (a) indebtedness for borrowed money or the deferred price of property or services, such as reimbursement and other obligations
for surety bonds and letters of credit, (b) obligations evidenced by notes, bonds, debentures or similar instruments, (c) capital
lease obligations and (d) Contingent Obligations.

 

“Indemnified
Person” is defined in Section 12.2 of this Agreement.

 

“Insolvency
Proceeding” is any proceeding by or against any Person under the United States Bankruptcy Code, or any other bankruptcy
or insolvency law, including assignments for the benefit of creditors, compositions, extensions generally with its creditors,
or proceedings seeking reorganization, arrangement, or other relief.

 

“Intellectual
Property” means all of Borrower’s right, title, and interest in and to the following:

 

(a) its
Copyrights, Trademarks and Patents;

 

(b) any
and all trade secrets and trade secret rights, including, without limitation, any rights to unpatented inventions, know-how, operating
manuals;

 

(c) any
and all source code;

 

(d) any
and all design rights which may be available to Borrower;

 

(e) any
and all claims for damages by way of past, present and future infringement of any of the foregoing, with the right, but not the
obligation, to sue for and collect such damages for said use or infringement of the Intellectual Property rights identified above;
and

 

(f) all
amendments, renewals and extensions of any of the Copyrights, Trademarks or Patents.

 

“Inventory”
is all “inventory” as defined in the Code in effect on the Effective Date with such additions to such term as may
hereafter be made, and includes without limitation all merchandise, raw materials, parts, supplies, packing and shipping materials,
work in process and finished products, including without limitation such inventory as is temporarily out of Borrower’s custody
or possession or in transit and including any returned goods and any documents of title representing any of the above.

 

“Investment”
is any beneficial ownership of (including stock, partnership interest or other securities) any Person, or any loan, advance or
capital contribution to any Person.

 

“Lender”
is defined in the preamble of this Agreement.

 

“Lien”
is a claim, mortgage, deed of trust, levy, charge, pledge, security interest or other encumbrance of any kind, whether voluntarily
incurred or arising by operation of law or otherwise against any property.

 

“Loan
Documents” are, collectively, this Agreement, a Guaranty Agreement from the Guarantor in favor of Lender, a Pledge and
Security Agreement by the Guarantor in favor of Lender, a Negative Pledge Agreement by each Subsidiary in favor of Lender, the
Fee Letter, and all other collateral and ancillary documents as Lender may request in connection herewith and therewith.

 

“Material
Adverse Change” is: (a) a material impairment in the perfection or priority of Lender’s Lien in the Collateral
or in the value of such Collateral; (b) a material adverse change in the business, operations, or condition (financial or otherwise)
of Borrower; or (c) a material impairment of the prospect of repayment of any portion of the Obligations.

 

“Maturity
Date” is defined in Section 2.1 of this Agreement.

 

“Notice
of Loan” is attached as Exhibit D.

 

    14

     

    

 

“Obligations”
are Borrower’s obligations to pay when due any debts, principal, interest, and other amounts Borrower owes Lender now or
later, whether under this Agreement, the Loan Documents, or otherwise, including, without limitation, any interest accruing after
Insolvency Proceedings begin and debts, liabilities, or obligations of Borrower assigned to Lender, and to perform Borrower’s
duties under the Loan Documents.

 

“Operating
Documents” are, for any Person, such Person’s formation documents, as certified with the Secretary of State of
such Person’s state of formation on a date that is no earlier than thirty (30) days prior to the Effective Date, and, (a)
if such Person is a corporation, its bylaws in current form, (b) if such Person is a limited liability company, its limited liability
company agreement (or similar agreement), and (c) if such Person is a partnership, its partnership agreement (or similar agreement),
each of the foregoing with all current amendments or modifications thereto.

 

“Patents”
means all patents, patent applications and like protections including without limitation improvements, divisions, continuations,
renewals, reissues, extensions and continuations-in-part of the same.

 

“Permitted
Indebtedness” is:

 

(a) Borrower’s
Indebtedness to Lender under this Agreement and the other Loan Documents;

 

(b) unsecured
Indebtedness to trade creditors incurred in the ordinary course of business;

 

(c) Indebtedness
secured by Liens permitted under clause (c) of the definition of “Permitted Liens” hereunder;

 

(d) Indebtedness
existing on the Effective Date which has been heretofore disclosed by Borrower to Lender and which is not otherwise described
in the any of the foregoing clauses (a) through (e) above; and

 

(e) extensions,
refinancings, modifications, amendments and restatements of any items of Permitted Indebtedness (a) through (f) above, provided
that the principal amount thereof is not increased or the terms thereof are not modified to impose more burdensome terms upon
Borrower or its Subsidiary, as the case may be.

 

“Permitted
Investments” are:

 

(a) Investments
(including, without limitation, Subsidiaries) existing on the Effective Date (but specifically excluding any future Investments
in any Subsidiaries unless otherwise permitted hereunder); and

 

(b) Investments
consisting of Cash Equivalents.

 

“Permitted
Liens” are:

 

(a) Liens
existing on the Effective Date, including Liens arising under this Agreement and the other Loan Documents;

 

(b) Liens
for taxes, fees, assessments or other government charges or levies, either (i) not due and payable or (ii) being contested in
good faith and for which Borrower maintains adequate reserves on Borrower’s Books, provided that no notice of any
such Lien has been filed or recorded under the Internal Revenue Code of 1986, as amended, and the Treasury Regulations adopted
thereunder;

 

(c) purchase
money Liens (including capitalized leases) (i) on Equipment acquired or held by Borrower incurred for financing the acquisition
of the Equipment securing no more than One Hundred Thousand Dollars ($100,000.00) in the aggregate amount outstanding per calendar
year, or (ii) existing on Equipment when acquired, if the Lien is confined to the property and improvements and the proceeds of
the Equipment; and

 

    15

     

    

 

(d) Liens
incurred in the extension, renewal or refinancing of the Indebtedness secured by Liens described in (a) through (c), but
any extension, renewal or replacement Lien must be limited to the property encumbered by the existing Lien and the principal amount
of the Indebtedness may not increase.

 

“Person”
is any individual, sole proprietorship, partnership, limited liability company, joint venture, company, trust, unincorporated
organization, association, corporation, institution, public benefit corporation, firm, joint stock company, estate, entity or
government agency.

 

“Registered
Organization” is any “registered organization” as defined in the Code with such additions to such term as
may hereafter be made.

 

“Requirement
of Law” is, as to any Person, the organizational or governing documents of such Person, and any law (statutory or common),
treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable
to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

 

“Responsible
Officer” is any of the Chief Executive Officer, President, Chief Financial Officer and Controller of Borrower.

 

“Restricted
License” is any material license or other agreement with respect to which Borrower is the licensee (a) that prohibits
or otherwise restricts Borrower from granting a security interest in Borrower’s interest in such license or agreement or
any other property, or (b) for which a default under or termination of could interfere with Lender’s right to sell any Collateral.

 

“SEC”
shall mean the Securities and Exchange Commission, any successor thereto, and any analogous Governmental Authority.

 

“Subsidiary”
is, as to any Person, a corporation, partnership, limited liability company or other entity of which shares of stock or other
ownership interests having ordinary voting power (other than stock or such other ownership interests having such power only by
reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation,
partnership or other entity are at the time owned, or the management of which is otherwise controlled, directly or indirectly
through one or more intermediaries, or both, by such Person. Unless the context otherwise requires, each reference to a Subsidiary
herein shall be a reference to a Subsidiary of Borrower or Guarantor.

 

“Trademarks”
means any trademark and servicemark rights, whether registered or not, applications to register and registrations of the same
and like protections, and the entire goodwill of the business of Borrower connected with and symbolized by such trademarks.

 

“Transfer”
is defined in Section 7.1 of this Agreement.

 

“Zest”
is defined in the definition of Zest Litigation.

 

“Zest
Litigation” means that certain action by Borrower’s Subsidiary, Zest Labs, Inc. (“Zest”), against
Wal-Mart Inc., filed on August 1, 2018 in the United States District Court for the Eastern District of Arkansas – Case #
4:18-cv-00500.

 

[Signature
page follows.]

 

    16

     

    

 

IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the Effective Date.

 

	BORROWER	 
	 	 
	ECOARK
    HOLDINGS, INC.	 
	 	 
	By:	                   	 
	Name:	 	 
	Title:	 	 
	 	 	 
	LENDER	 
	 	 
	TREND
    DISCOVERY SPV I, LLC	 
	 	 
	By:	 	 
	Name:	 	 
	Title:	 	 

 

    17

     

    

 

Schedule
5.3

Intellectual
Property

 

    18

     

    

 

Schedule
5.8

Owned
Equity Interests

 

    19

     

    

 

EXHIBIT
A

 

The
Collateral consists of all of Borrower's right, title and interest in and to the following:

 

All
goods, equipment, inventory, contract rights or rights to payment of money, leases, license agreements, franchise agreements,
general intangibles (including payment intangibles), accounts (including health-care receivables), documents, instruments (including
any promissory notes), chattel paper (whether tangible or electronic), cash, deposit accounts, all certificates of deposit, fixtures,
letters of credit rights (whether or not the letter of credit is evidenced by a writing), commercial tort claims, securities,
and all other investment property, supporting obligations, and financial assets, whether now owned or hereafter acquired, wherever
located; and any copyright rights, copyright applications, copyright registrations and like protections in each work of authorship
and derivative work, whether published or unpublished, now owned or later acquired; any patents, trademarks, service marks and
applications therefor; trade styles, trade names, any trade secret rights, including any rights to unpatented inventions, know-how,
operating manuals, license rights and agreements and confidential information, now owned or hereafter acquired; or any claims
for damages by way of any past, present and future infringement of any of the foregoing; and

 

All
Borrower’s books relating to the foregoing and any and all claims, rights and interests in any of the above and all substitutions
for, additions, attachments, accessories, accessions and improvements to and replacements, products, proceeds and insurance proceeds
of any or all of the foregoing.

 

    20

     

    

 

EXHIBIT
B

 

Compliance
Certificate

 

I,
an authorized officer of ECOARK HOLDINGS, INC. (“Borrower”) certify under the Loan and Security Agreement (as may
be amended or modified from time to time, the “Agreement”) between Borrower and TREND DISCOVERY SPV I, LLC (”Lender”)
as follows for the period ending (all capitalized terms used herein shall have the meaning set forth in the Agreement):

 

Borrower
represents and warrants as follows:

 

Borrower
and each Subsidiary is duly existing and in good standing in its state of formation and qualified and licensed to do business
in, and in good standing in, any state in which the conduct of its business or its ownership of property requires that it be qualified
except where the failure to do so could not reasonably be expected to cause a Material Adverse Change. The execution, delivery
and performance of the Loan Documents have been duly authorized, and do not conflict with Borrower's organizational documents,
nor constitute an event of default under any material agreement by which Borrower is bound. Borrower is not in default under any
agreement to which or by which it is bound in which the default could reasonably be expected to cause a Material Adverse Change.

 

Borrower
has good title to the Collateral, free of Liens except Permitted Liens. All inventory is in all material respects of good and
marketable quality, free from material defects. Borrower is not an “investment company” or a company “controlled”
by an “investment company” under the Investment Company Act of 1940, as amended. Borrower is not engaged as one of
its important activities in extending credit for margin stock (under Regulations X, T and U of the Federal Reserve Board of Governors).
Borrower has complied in all material respects with the Federal Fair Labor Standards Act. Borrower has not violated any laws,
ordinances or rules, the violation of which could reasonably be expected to cause a Material Adverse Change. None of Borrower's
or any Subsidiary's properties or assets have been used by Borrower or any Subsidiary or, to the best of Borrower's knowledge,
by previous Persons, in disposing, producing, storing, treating, or transporting any hazardous substance other than legally. Borrower
and each Subsidiary has timely filed all required tax returns and paid, or made adequate provision to pay, all material taxes,
except those being contested in good faith with adequate reserves under GAAP. Borrower and each Subsidiary has obtained all consents,
approvals and authorizations of, made all declarations or filings with, and given all notices to, all government authorities that
are necessary to continue its business as currently conducted except where the failure to obtain or make such consents, declarations,
notices or filings would not reasonably be expected to cause a Material Adverse Change. Borrower has satisfied and has caused
each Subsidiary to satisfy each of the conditions precedent contained in Section 3 of the Loan Agreement.

 

The
undersigned acknowledges that no borrowings may be requested at any time or date of determination that Borrower is not in compliance
with any of the terms of the Agreement, and that compliance is determined not just at the date this certificate is delivered.

 

All
other representations and warranties in the Agreement are true and correct in all material respects on this date, and Borrower
represents that there is no existing Event of Default.

 

	Sincerely,	 
	 	 
	ECOARK HOLDINGS, INC.	 
	 	 
	 	 
	Signature	 
	 	 
	 	 
	Title	 
	 	 
	 	 
	Date	 

 

    21

     

    

 

EXHIBIT
C

 

Form
of Demand Note

	$[                             ]	             ,
    2018

 

FOR
VALUE RECEIVED, the undersigned, ECOARK HOLDINGS, INC. (“Borrower”), a corporation organized under the laws
of ___________, hereby promises to pay, on the earlier of (i) ON DEMAND or (ii) on the Maturity Date to the order of Trend
Discovery SPV I, LLC (“Lender”) at the payment office of Lender the principal sum of [] 00/100 Dollars
($[]), or the aggregate unpaid principal amount of all Loans (as defined in the Loan Agreement, as defined herein)
made by Lender to Borrower pursuant to the Loan Agreement, whichever is less. Borrower also agrees to pay any additional amount
that is required to be paid pursuant to the terms and provisions of the Loan Agreement.

 

As
used herein, “Loan Agreement” means the Loan and Security Agreement dated as of December , 2018, between Borrower
and Lender, as the same may from time to time be amended, restated or otherwise modified. Each capitalized term used herein that
is defined in the Loan Agreement and not otherwise defined herein shall have the meaning ascribed to it in the Loan Agreement.

 

Borrower
promises to pay interest on the unpaid principal amount hereof from the date hereof until the payment in full hereof, at the rates
per annum that shall be determined in accordance with the relevant provisions of the Loan Agreement. Such interest shall be payable
on each date as provided for in the Loan Agreement. All payments of principal and interest on this Demand Note shall be made in
immediately available funds.

 

This
Demand Note is referred to in the Loan Agreement and is entitled to the benefits thereof. Reference is made to the Loan Agreement
for a description of the right of the undersigned to anticipate payments hereof, the right of the holder hereof to declare this
Demand Note due prior to its stated maturity, and other terms and conditions upon which this Demand Note is issued.

 

Except
as expressly provided in the Loan Agreement, Borrower expressly waives presentment, demand, protest and notice of any kind. This
Demand Note shall be governed by and construed in accordance with the laws of the State of New York, without regard to conflicts
of laws provisions.

 

BORROWER
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY
LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS DEMAND NOTE OR THE TRANSACTIONS CONTEMPLATED HEREBY
(WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).

 

IN
WITNESS WHEREOF, and intending to be legally bound hereby, the undersigned has executed this Demand Note by its duly authorized
officer as of the date first written above.

 

	 	ECOARK HOLDINGS, INC.  
	 	 	 
	 	By:	 
	 	 	Name:
	 	 	Title:

 

    22

     

    

 

EXHIBIT
D

 

Notice
of Loan

 

[Date]_______________________,
20____

Trend
Discovery SPV I, LLC

7
Wells Street, Suite 302D

Saratoga
Springs, New York 12866

 

Attention:
_______________

Ladies
and Gentlemen:

The
undersigned, ECOARK HOLDINGS, INC., refers to the Loan Agreement, dated as of December , 2018 (as the same may from time to time
be amended, restated or otherwise modified, the “Loan Agreement”, the terms defined therein being used herein as therein
defined), between the undersigned and TREND DISCOVERY SPV I, LLC, as Lender, and hereby gives you notice, pursuant to Section
2.3 of the Loan Agreement that the undersigned hereby requests a Loan under the Loan Agreement, and in connection therewith sets
forth below the information relating to the Loan (the “Proposed Loan”) as required by Section 2.3 of the Credit Agreement:

(a) The
Business Day of the Proposed Loan is __________, 20__.

(b) The
amount of the Proposed Loan is $_______________.

The
undersigned hereby certifies that the following statements are true on the date hereof, and will be true on the date of the Proposed
Loan:

 

(i) the
representations and warranties contained in each Loan Document are correct in all material respects to the extent not otherwise
qualified by a materiality concept, before and after giving effect to the Proposed Loan and the application of the proceeds therefrom,
as though made on and as of such date (except to the extent any representation or warranty is stated to relate solely to an earlier
date);

 

(ii) no
event has occurred and is continuing, or would result from such Proposed Loan, or the application of proceeds therefrom, that
constitutes a Default or Event of Default; and

 

(iii) the
conditions set forth in Section 3 of the Loan Agreement have been satisfied.

 

	 	Very truly yours,
	 	 
	 	ECOARK HOLDINGS, INC.
	 	 	 
	 	By:	 
	 	Print Name:	 
	 	Title:	 

 

    23

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