Document:

Exhibit
10.1

 

LOAN
AND SECURITY AGREEMENT

 

This
Loan and Security Agreement (as amended hereafter, this “Agreement”) is entered into as of August 17, 2017
and confirms the understanding and agreement by and between TECH CAPITAL, LLC, a California limited liability company (“Lender”),
with its headquarters at 2010 North First Street, Suite 300, San Jose, California
95131 (Facsimile No. 408-467-2393), and NEPHROS, INC., a Delaware
corporation (“Borrower”), with its headquarters at 41 Grand Avenue, River Edge, New Jersey 07661 (its “Chief
Executive Office”) (Facsimile No. 202-343-5207), regarding the loans to be made by Lender and Lender’s terms
and conditions.

 

RECITALS

 

A.
Borrower has requested Lender to make loans to Borrower for business purposes including working capital.

 

B.
Lender is willing to make such loans to Borrower, on the terms and conditions set forth in the Agreement, and Borrower agrees
to make the payments required by this Agreement and to comply with the other terms and conditions of this Agreement.

 

AGREEMENT

 

1.
Subject to the terms of this Agreement, upon Borrower’s request, Lender shall from time to time in Lender’s sole discretion
advance sums to Borrower under the A/R Borrowing Base (each, an “Advance” and
collectively, “Advances”) so long as no Overadvance exists before the requested advance or would be created by such
Advance, with an “Overadvance” to exist when the principal balance of all outstanding Advances and other Obligations
(as defined in Paragraph 6) plus any applicable reserves exceed the Allowable Amount.
The “Allowable Amount” means the lesser of (a) One Million and 00/100
Dollars ($1,000,000.00) (the “Maximum Amount”), or (b) the
Borrowing Base, with “Borrowing Base” meaning the sum of (i) Eighty-Five percent (85%) of the Net Face
Amount of Prime Accounts (both as defined in Paragraph 2), but in any event not in an aggregate amount in excess of One Million
and 00/100 Dollars ($1,000,000.00) (the “A/R
Borrowing Base”), plus (ii) thirty-five percent (35%) of the Current Market Cost (as defined in Paragraph
2) of finished goods that constitute Eligible Inventory, but in any event not in an aggregate amount in excess of the lesser of
Two Hundred and Fifty-Thousand and 00/100 Dollars ($250,000.00) or Fifty
percent (50%) of the aggregate Net Face Amount of Prime Accounts (the “Inventory
Borrowing Base”). Amounts borrowed may be repaid and, subject to the terms of this Agreement, reborrowed at any time
during the term of this Agreement. Borrower shall draw all available funds under the A/R
Borrowing Base prior to drawing any available funds under the Inventory Borrowing Base. At such time that amounts advanced under
the A/R Borrowing Base have been paid in full, with no further intention on the part of Lender to make further Advances, or on
the part of Borrower to obtain further Advances, amounts advanced under the Inventory Borrowing Base shall also be due and payable
in full. Amounts available under this Agreement shall be advanced prior to amounts available under any other agreement
with Lender, unless Lender deems otherwise. To the extent Borrower uses Advances under this Agreement to purchase Collateral (as
defined in Paragraph 6), Borrower’s repayment of the Advances shall apply on a “first-in
first-out” basis so that the portion of the Advances used to purchase a particular item of Collateral shall be paid
in the chronological order in which Borrower purchased the Collateral. Lender may, in its sole discretion, from time to time,
reduce the above percentage or institute reserves against the Borrowing Base to the extent Lender determines in good faith that:
the dilution rate of Accounts (as defined in Paragraph 6) for any period has or may be reasonably anticipated to increase in any
material respect; the general creditworthiness of one or more account debtors has declined; the number of days of turnover of
Inventory (as defined in Paragraph 6) for any period has increased in any material respect; the liquidation value of Eligible
Inventory, or any category thereof, has decreased; cost or count variances exist or are anticipated to exist with respect to Inventory;
or the nature or quality of Inventory has deteriorated.

 

    	 

    	 

    

 

2.
As used in this Agreement ‘‘Net Face Amount” shall mean with respect to an Account, the gross face amount of
such Account less all trade discounts or other deductions to which the account debtor is entitled. “Prime
Accounts” shall mean Accounts created by Borrower which: (a) are acceptable to Lender in its sole discretion; (b)
are creditworthy, and not owing from account debtors that have failed, are insolvent, out of business, or who are subject to a
voluntary or involuntary insolvency proceeding; (c) are subject to a perfected first priority
security interest held by Lender; (d) have been delivered to Lender in such a manner as Lender may require, including being
presented with a “Report of Assignments” or such other procedural requirement established by Lender pursuant to this
Agreement or in a procedure manual or otherwise; (e) as of the date of determination, are not more than sixty (60) days
past due or remain uncollected more than ninety (90) days from the date of each invoice; (f) have been created by absolute
sales of Borrower’s merchandise or services, are genuine, bona fide and collectible, and Borrower has good, unencumbered
and absolute title thereto, free of any third party claims and liens; (g) are not subject to any dispute, right of offset, claim,
cross-claim, counterclaim, defense or right of cancellation or return; (h) at the time of delivery or transmission to Lender,
all property (and/or services) giving rise to such Accounts will have been delivered (from Premises in the United States) to,
and/or performed, as applicable, and unconditionally accepted by, each account debtor, and such property shall not have been placed
on consignment, guaranteed sale, sale or return, sale on approval, or other terms by which payment by the account debtor is conditional;
(i) Borrower has fully performed as required by the terms of all agreements and purchase orders giving rise to such Account; (j)
are due and unconditionally payable on terms of thirty (30) days or less, or on such other terms (as are acceptable to Lender)
which are expressly set forth on the face of all invoices, copies of which shall be delivered to Lender, and no such Accounts
will then be past due; (k) do not consist of progress billings, bill and hold invoices or retainage invoices; (1) neither the
account debtor nor any officer, employee or agent of the account debtor with respect to such Accounts is an officer, employee
or agent of or affiliated with Borrower directly or indirectly by virtue of family membership, ownership, control, management
or otherwise, nor are any such Accounts owing from account debtors to whom Borrower is or may become liable to for goods or services
rendered by such account debtors to Borrower; (m) the account debtors with respect to such Accounts are not any foreign government,
the United States of America, any State or any political subdivision, department, agency or instrumentality thereof; (n) from
a single account debtor and its affiliates do not in the aggregate constitute more than twenty-five percent (25%)
of all otherwise Prime Accounts (but the portion of such Accounts not in excess of such percentage may be deemed Prime Accounts);
(o) are not owed by any account debtor whose Accounts that have aged ninety (90) days or more from invoice date comprise
more than twenty-five percent (25%) of such account debtor’s total Accounts; and (p) are not Accounts with
respect to which the account debtor is a resident of a country other than the United States of America except as Lender may consent
in its sole discretion; and (q) strictly comply with all Borrower’s warranties and representations to Lender (including
those set forth in Paragraph 9). Any Accounts that are not Prime Accounts shall nevertheless be part of the Collateral, and Borrower
acknowledges and agrees that (unless otherwise agreed to by Lender in writing) all Accounts shall be assigned to Lender regardless
of whether Advances will be made against same. “Value” shall mean the
lower of cost or fair market value. “Premises” shall collectively mean the Chief Executive Office and 380 Lackawanna
Place, South Orange, New Jersey 07079, and 100 Corporate Drive, Montgomeryville, Pennsylvania 18936 (Lansdale - third party warehouse),
Borrower’s existing additional place(s) of business, and Borrower’s hereafter additional place(s) of business (individually
and collectively, the “Other Locations”).

 

As
used in this Agreement, “Current Market Cost” means, as determined by Lender in its sole discretion, the lower of:
(a) cost of Inventory, computed on a first-in-first-out basis in accordance with GAAP (as defined in paragraph 43); or (b) the
market value of Inventory. “Eligible Inventory” means, as determined by Lender in its sole discretion, Inventory that
meets the following criteria: (i) Inventory acceptable to Lender, in its sole discretion, for lending purposes; (ii) Inventory
held for sale or lease in the ordinary course of Borrower’s business; (iii) Inventory located at Borrower’s Premises
(as defined in Paragraph 2); provided, however, that if any such location is owned by a third party other than Borrower, Lender
shall have obtained from the owner thereof an agreement relative to Lender’s rights with respect to such Inventory, in form
and content satisfactory to Lender; (iv) Inventory shall be that in which Lender has a first perfected security interest; (v)
Inventory shall not be subject to a security interest, lien or other encumbrance in favor of any other person or entity; (vi)
Inventory shall be of good and merchantable quality free from defects, and that is not slow moving, obsolete, returned, perishable,
or manufactured under a license agreement unless the licensor (if other than Borrower) has entered into an agreement in form and
content satisfactory to Lender; (vii) Inventory shall be owned by, and in the lawful possession of, Borrower; (viii) Inventory
shall be that which does not consist of packaging or shipping materials; (ix) Inventory shall be that which does not consist of
supplies used or consumed in Borrower’s business; and (x) Inventory that does not consist of raw materials or work-in-process.
General criteria for Eligible Inventory may be established and revised from time to time by Lender in its sole discretion. Any
Inventory that is not Eligible Inventory shall nevertheless be part of the Collateral.

 

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3.
Except as provided below, each Advance and the Obligations to Lender shall be paid by the receipt by, and/or the delivery to,
Lender of all payments on Accounts (including, without limitation, deposits relating thereto and collections on cash sales) and
proceeds of other Collateral. Notwithstanding the foregoing, in the event that an Overadvance exists at any time (and without
affecting Lender’s other rights and remedies), Borrower shall immediately repay the entire Overadvance to Lender without
demand. In addition, all Obligations, whenever and however created, shall become immediately due and payable without demand upon
the occurrence of an Event of Default (as defined in Paragraph 29) or in the case of termination (as set forth in Paragraph 32),
whether by notice, lapse of time or otherwise, whichever occurs first. Payments received on Prime Accounts shall be applied to
the Obligations first against fees and costs, if any, then against interest and then against principal and with any credit balance
consisting of cleared funds in excess of any reserves, in the absence of an Event of Default, to be remitted to Borrower. Payments
received from any other source that is not proceeds from a Prime Account shall be applied in the same manner as payments received
from a Prime Account as set forth herein. For purposes of calculating borrowing availability under Paragraph 1, payments shall
be credited against the Obligations no later than the next business day following the business day payments are received but for
purposes of computing interest shall be deemed made as set forth in Paragraph 4, with all payments subject to reversal upon dishonor.
Borrower shall be provided on-line internet access (or other access in Lender’s discretion) to information regarding the
Obligations, and such information shall be conclusively presumed to be correct and constitute an account stated unless, within
thirty (30) days following any such information first becoming available, Borrower delivers (pursuant to Paragraph 35) written
objection thereto to Lender.

 

4.
Advances and other Obligations hereunder shall bear interest, on the average daily outstanding balance, at the rate (the “Rate”)
of three and one-half percentage point(s) (3.50%) per annum (in
the case of Advances against the A/R Borrowing Base), and three and one-half percentage
point(s) (3.50%) per annum (in the case of Advances against the Inventory Borrowing Base) over and above the rate announced
as the “prime” rate in the Western Edition of the Wall Street Journal which is in effect from time to time (the “Prime
Rate”); provided that the Prime Rate shall at all times be deemed to be not less than four and one-quarter percent
(4.25%) per annum (the “Deemed Prime Rate”) and provided that the minimum amount of interest payable together
with the Administrative Fee (as defined in Paragraph 5) shall in no event be less than One Thousand and 00/100 Dollars ($1,000.00)
per month (the “Minimum Monthly Interest Payment”). In the event that the Prime Rate is changed, the adjustment
in the Rate charged shall be made on the day such change occurs. Interest shall be computed on the basis of a 360-day year for
the actual number of days elapsed. Interest shall be due and payable monthly on the first day of each month, and if not so paid,
shall bear interest at the Rate. At Lender’s option, accrued interest may be charged as an Advance hereunder and added to
the Obligations regardless of whether an Overadvance will result. Notwithstanding anything to the contrary contained in this Agreement,
for the purpose of computing interest, no payment made by check or any other means including, without limitation, by wire or credit
card receipts, shall be deemed made until three (3) business days after receipt thereof by Lender, to allow for and subject to,
clearance of funds (such timer period “Clearance Days”).

 

5.
The following fees/deposits shall apply:

 

(a)
Loan Fee – On the effective date of this Agreement (which shall occur upon the initial
Advance hereunder) (the “Effective Date’”) and annually,
every twelve (12) months thereafter while any Obligations remain outstanding, Borrower, without demand, agrees to pay Lender a
loan fee in the amount of six-tenths of one percent (0.60%) of the Maximum Amount
(the “Loan Fee”). At Lender’s option, the Loan Fee may be charged
as an Advance hereunder and added to the Obligations regardless of whether an Overadvance will result.

 

(b)
Administrative Fee - While any Obligations remain outstanding, on or before the first day of each month, Borrower, without demand,
agrees to pay an administrative fee equal to N/A percent (N/A%) per month of the average daily outstanding balance of Obligations
during the preceding month (the “Administrative Fee”). For purposes of computing the average daily outstanding balance
of Obligations during the month and the Administrative Fee payable on account thereof,
payments shall be applied as set forth in Paragraphs 3 and 4 above. At Lender’s option, the Administrative Fee may be charged
as an Advance hereunder and added to the Obligations regardless of whether an Overadvance will result.

 

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(c)
Good Faith Deposit - Lender has received or will receive a deposit in the amount of Two Thousand Five Hundred and 00/100 Dollars
($2,500.00) (the “Good Faith Deposit”) to be applied against audit
fees and expenses and actual out of pocket costs incurred by or on behalf of Lender in connection with the transaction relating
to this Agreement and the Loan Documents (as defined in Paragraph 37). Any unpaid portion of the Good Faith Deposit shall be due
and payable on the Effective Date. In the event that such fees and costs are less than the Good Faith Deposit, any such excess
deposit will be applied to the Loan Fee, or if the Loan Fee has been paid in full, such excess amount shall be applied against
then or thereafter existing Obligations. In the event such fees and costs are more than the Good Faith Deposit, any such excess
fees and costs will be immediately paid by Borrower without demand or, at Lender’s option, may be charged as an Advance
hereunder and added to the Obligations regardless of whether an Overadvance will result.

 

(d)
Documentation Fee/Legal Deposit - Lender has received or will receive an additional documentation fee and legal deposit in the
amount of Two Thousand Five Hundred and 00/100 Dollars ($2,500.00) to be applied against document preparation and legal
fees and costs (the “Documentation Fee/Legal Deposit”). Any unpaid portion
of the Documentation Fee/Legal Deposit shall be due and payable on the Effective Date. In the event that such fees and
costs are less than the Documentation Fee/Legal Deposit, any such excess deposit will be applied to the Loan Fee, or if the Loan
Fee has been paid in full, such excess amount shall be applied against then or thereafter existing Obligations. In the event such
fees and costs are more than the Documentation Fee/Legal Deposit, any such excess fees and costs will be immediately paid by Borrower
without demand or, at Lender’s option, may be charged as an Advance hereunder and added to the Obligations regardless of
whether an Overadvance will result.

 

(e)
Audit Fee – In connection with periodic audits as required by Lender, Borrower shall pay to Lender without demand audit
fees of One Thousand and 00/100 Dollars ($1,000.00) per day, plus actual out
of pocket costs related to each audit. At Lender’s option, the Audit Fee may be charged as an Advance hereunder and
added to the Obligations regardless of whether an Overadvance will result.

 

(f)
Overadvance Fee – If an Overadvance exists without Lender’s prior written consent, Borrower shall pay Lender a fee
equal to three percent (3.0%) of the original amount of such Overadvance, with such fee not constituting a waiver of Lender’s
rights and remedies occasioned by such Overadvance. If an Overadvance exists with Lender’s prior written consent, as one
or more of the conditions to such consent, Borrower shall pay Lender a fee in an amount determined by Lender. At Lender’s
option, the applicable Overadvance Fee may be charged as an Advance hereunder and added to the Obligations regardless of whether
an existing Overadvance will be increased thereby.

 

(g)
Inventory Appraisal Fee – While any: (a) funds are available to Borrower under the Inventory Borrowing Base; or (b) funds
that have been advanced under the Inventory Borrowing are owing and payable to Lender, Borrower shall pay on demand any fees incurred
in connection with periodic Inventory appraisal and monitoring fees.

 

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6.
This Agreement secures the following: (a) Borrower’s Advances and all other Obligations; (b) all of Borrower’s other
present and future obligations to Lender; (c) the repayment of (i) any amounts that Lender may advance or spend for the maintenance
or preservation of the Collateral (as defined herein below) or any collateral provided by any Guarantor (as defined in Paragraph
23); and (ii) any other expenditures that Lender may make under the provisions of this Agreement or for the benefit of Borrower;
(d) all amounts owed under any modifications, renewals or extensions of any of the foregoing obligations whether or not of the
nature contemplated at the date hereof; (e) all other amounts now or in the future
owed by Borrower or any Guarantor to Lender; (f) any of the foregoing and interest thereon
that arises after the filing of a petition by or against Borrower under the Bankruptcy Code, even if the obligations do
not accrue because of the automatic stay under Bankruptcy Code § 362 or otherwise; and (g) interest on the preceding amounts
as set forth in this Agreement or the Loan Documents, or if no such agreement, at the maximum rate permitted by law ((a) through
(g) collectively, the “Obligations”). These Obligations shall be secured by a continuing security interest in all
of the personal property and trade fixtures now owned or hereafter acquired by Borrower whether now existing or hereafter arising
and wherever located, together with all collateral now or hereafter described in any form UCC-1 filed against Borrower naming
Lender as the secured party, including without limitation, (1) all Accounts; (2) all Chattel Paper including without limitation
Electronic Chattel Paper; (3) all Inventory; (4) all Equipment; (5) all trade fixtures and all Fixtures if real property collateral
is involved; (6) all Instruments; (7) all Financial Assets, including without limitation, Investment Property; (8) all Documents;
(9) all Deposit Accounts; (10) all Letter of Credit Rights; (11) all General Intangibles including without limitation copyrights,
trademarks, and patents in all countries, Payment Intangibles and Software, and all rights in and to domain names in whatever
form, and all derivative URLs; (12) all Supporting Obligations; (13) any Commercial Tort Claim listed on any schedule provided
herewith or hereafter; (14) all returned or repossessed goods arising from or relating to any Accounts or Chattel Paper; (15)
all certificates of title and certificates of origin or manufacturers statements of origin relating to any of the foregoing, now
owned or hereafter acquired; (16) all property similar to any of the foregoing hereafter acquired by Borrower; (17) all ledger
sheets, files, records, documents, instruments, and other books and records (including without limitation related electronic data
processing Software) evidencing an interest in or relating to the above; (18) all money, cash or cash equivalents; and (19) to
the extent not otherwise included in the foregoing, all proceeds, products, insurance claims, and other rights to payment and
all accessions to, replacements for, substitutions for, and rents and profits of, and noncash proceeds of each of the foregoing
(all of the foregoing collectively, the “Collateral”). All of the foregoing terms, capitalized or otherwise, shall
have the meaning given in the California Uniform Commercial Code, as amended from time to time (the “UCC”).
Notwithstanding any contrary term of this Agreement, Collateral shall not include any waste or other materials that have
been or may be designated as toxic or hazardous. Each new Advance and other Obligation(s) (and all prior Advances and other Obligations)
shall be secured by this Agreement and all other security agreements that Borrower has then given or caused to be given, or thereafter
gives or causes to be given, to Lender. Except to the extent otherwise provided, this Agreement does not secure any obligation
that is secured by a consensual lien on real property.

 

7.
Borrower shall preserve Borrower’s existence and not, in one transaction or a series of related transactions: (a) merge
into or consolidate with any other entity, or sell any of Borrower’s assets (except for sales of Inventory in the ordinary
course of business but subject to the terms of Paragraph 30); (b) change the Borrower’s State of organization or formation
or Borrower’s legal name; (c) relocate its Chief Executive Office or Premises; or (d) open any new locations unless Borrower
(1) gives thirty (30) days’ prior written notification to Lender; and (2) executes and delivers, or causes to be executed
and delivered, to Lender such agreements, documents, and instruments as Lender may deem necessary or desirable to protect Lender’s
interests in the Collateral at such locations, including without limitation, UCC-1 Financing Statements and waivers with an acknowledgement
of Lender’s interest from any landlord, bailee, or warehouseman in form and substance satisfactory to Lender, or as Lender
may require as a result of such change. The Collateral, however, shall not at any time now or hereafter be stored with a landlord,
bailee, warehouseman, or similar party without Lender’s prior written consent and Lender’s receipt of the above waivers
with an acknowledgement from the third party that it is holding the Collateral for the benefit of Lender. Borrower shall provide
Lender with thirty (30) days advanced notice of the sale or contemplated sale of the Premises whether owned or leased. Borrower
will cooperate with Lender in obtaining possession or control, where Lender chooses to require possession or control in addition
to the filing of a financing statement. Borrower will cooperate with Lender in obtaining possession or control with respect to
Collateral consisting of Deposit Accounts, Investment Property, Letter of Credit Rights, and Electronic Chattel Paper. If Borrower
has or shall acquire a commercial tort claim, Borrower shall promptly notify Lender in a writing signed by Borrower of the general
details thereof and grant to Lender in such writing a security interest therein and in the proceeds thereof, all upon the terms
of this Agreement, with such writing to be in form and substance satisfactory to Lender.

 

8.
Borrower shall not do business under any name other than Nephros, Inc. unless Borrower has provided to Lender evidence it has
taken such legal steps required with respect to fictitious or assumed names under the applicable laws of the jurisdictions in
which Borrower is located and/or does business. To that effect, Lender has received acceptable documentation indicating that Borrower
will be doing business under the following additional name(s): ———-N/A———-.

 

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9.
So long as any Obligations remain outstanding, Borrower warrants, represents and agrees
that: (a) all Accounts and all Inventory against which Borrower seeks Advances, shall be Prime Accounts and Eligible Inventory,
as applicable; (b) all Collateral in which a security interest has been or will be given or caused to be given by Borrower to
Lender is and will be a first priority security interest on the property described in each such security agreement (except insofar
as Borrower has notified Lender to the contrary in writing and Lender has consented) and shall remain personal property at all
times; (c) the property covered by all security agreements given or caused to be given by Borrower to Lender (1) is solely owned
by Borrower or the party described in such security agreement; or (2) Borrower or such party has rights in or the power to grant
a security interest in such property; (d) the property covered by all security agreements given or caused to be given by Borrower
to Lender is free and clear of all liens, encumbrances, security interests, adverse claims, or restrictions on transfer or pledge
except as created by such security agreements; (e) the Collateral covered by all security agreements given or caused to be given
by Borrower to Lender is kept in good condition and repair, is not subject to waste, will not be affixed to any real property
in any manner which would change the Collateral’s nature from that of personal property to real property and/or fixture,
and (except for sales of Inventory in the ordinary course of business but subject to the terms of Paragraph 30) will not be removed
from the Premises described in such security agreements without first obtaining Lender’s prior written consent; (f) all
Collateral consisting of goods shall be located solely in New Jersey and Pennsylvania or such other State as Lender consents
to in advance in writing, such consent to which shalt not be unreasonably withheld or delayed given Borrower’s usual course
of business (the “Collateral State(s)”); (g) all facts, figures, representations given, or caused to be given by Borrower
to Lender in connection with the Value of the Collateral or regarding each Advance or Account or pertaining to anything done under
this Agreement shall be true and correct; (h) Borrower’s books and records fully and accurately reflect all of Borrower’s
assets and liabilities (absolute and contingent), are kept in the ordinary course of business in accordance with GAAP, (as defined
in Paragraph 43) consistently applied and all information contained therein is true and correct; and (i) the fair market value
of the property covered by all security agreements given by Borrower to Lender, is and shall at all times be, not less than the
price which Borrower paid therefor (less normal depreciation caused by ordinary wear and tear) and as represented to Lender.

 

10.
So long as any Obligations remain outstanding, Borrower warrants, represents, and agrees that: (a) Borrower will not borrow any
money in excess of Twenty-five Thousand and 00/100 Dollars ($25,000.00) in the aggregate, except pursuant to this Agreement
without first obtaining the consent of Lender; (b) Borrower will not guarantee or otherwise become liable with respect to the
obligations of any third party; (c) Borrower will not make any distributions or declare or pay any dividends (whether in cash
or stock) on, or purchase, acquire, redeem or retire any of Borrower’s capital stock without Lender’s prior written
consent; (d) Borrower will not directly or indirectly make or acquire any beneficial interest in, or make any loan or capital
contribution to any third party without Lender’s prior written consent; (e) Borrower shall not directly or indirectly enter
into or permit to exist any transaction with any affiliate of Borrower except in an arms’ length transaction for adequate
consideration conducted in the ordinary course of business and which is previously disclosed to Lender, nor shall Borrower transfer
any of its assets to an affiliate of Borrower without Lender’s prior written consent;; (f) Borrower shall immediately notify
Lender if Borrower’s C.E.O., or C.F.O. are no longer employed or die or become disabled, and Borrower shall hire a replacement
for same that is satisfactory to Lender within 8 weeks of so notifying Lender; (g) all taxes of any governmental or taxing authority
due or payable by, or imposed or assessed against Borrower have been paid and shall be paid in full before delinquency; (h) all
filings or other actions required under applicable law, including but not limited to securities law, have been made or shall be
made before delinquency; (i) there are no actions or proceedings pending by or against Borrower before any court or administrative
agency, and there are no pending, threatened, or known to be imminent litigation, governmental investigations or claims, complaints,
or prosecutions involving Borrower, and Borrower is not bound by the terms of any settlement agreement, consent decree, court
order, injunction or the like relating to formerly pending, pending, or threatened actions, proceedings, or prosecutions involving
Borrower, except as heretofore disclosed in writing to Lender; (j) Borrower has the legal power and authority to enter into this
Agreement and to perform and discharge all of its obligations hereunder; (k) Borrower’s exact legal name is as set forth
in the first paragraph of this Agreement; (1) Borrower is a corporation and Borrower will do all things necessary to preserve
good standing as a corporation under the laws of the State of Delaware, the state of Borrower’s organization
and the state(s) where Borrower conducts business, including without limitation: New Jersey and Pennsylvania; and (m) the
person executing this Agreement has full authority to do so and to bind Borrower under Borrower’s governing articles, bylaws
or other governing documents. Lender does not authorize, and Borrower agrees not to: (1) make any sales, leases or licenses of
any of the Collateral outside of the ordinary course of business or in contravention of the terms of this Agreement or the Loan
Documents; (2) enter into an exclusive license of any of the Collateral, a license of any of the Collateral outside of the ordinary
course of business or in contravention of the terms of this Agreement or the Loan Documents or fail to notify Lender of any license
permitted hereunder; or (3) grant or permit to exist any other security interest or lien in any of the Collateral, or on any income,
profits or proceeds therefrom. Borrower shall accept no returns and shall grant no allowances or credits to account debtors without
notifying Lender at the time credit is issued. Lender shall have the right to impose a reserve against the A/R Borrowing
Base for actual or anticipated returns, allowances, and credits.

 

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11.
Borrower agrees to execute upon demand by Lender any and all documents or statements intended to perfect and/or continue Lender’s
security interest in the Collateral, in whatsoever form Lender may require including but not limited to an abbreviated Collateral
description such as “All Assets of the Borrower”, as provided for and
defined in Division 9 of the California UCC, but Lender shall be entitled and is hereby expressly authorized to execute and file
the same on Borrower’s behalf, and Lender is hereby appointed Borrower’s attorney-in-fact for such purpose.

 

12.
Each warranty, representation, and agreement contained in this Agreement shall be automatically deemed repeated and reaffirmed
with each Advance and shall be conclusively presumed to have been relied on by Lender regardless of any investigation made, or
information possessed by Lender. The warranties, representations and agreements set forth herein shall be cumulative and in addition
to any and all other warranties, representations and agreements contained in any other document or instrument which Borrower shall
give, or cause to be given, to Lender either now or hereafter.

 

13.
Notwithstanding termination of this Agreement, all assignments, pledges, liens, and/or other security interests now or hereafter
granted to Lender and all other obligations required of Borrower pursuant to this Agreement, any of the other Loan Documents,
or any other procedure manual or other requirement of Lender shall continue in full force until all of the Obligations owing to
Lender have been paid, including without limitation Borrower’s obligation to continue to turn over sales information and
invoices, and collections thereon, to Lender.

 

14.
Borrower shall promptly pay any and all expenses of storing, warehousing, insuring, handling and shipping of Borrower’s
property, any and all excise, property, sales and other taxes (providing Lender with evidence of payment thereof) levied or imposed
by any governmental or taxing authority on Borrower or on any of Borrower’s property or any property caused to be given
to Lender as security, and any amounts owing to any third party that could give rise to any security interest, encumbrance or
lien on any of Borrower’s property or any property serving as Lender’s Collateral. If Borrower fails to promptly pay
when due, whether to Lender or any other person, monies which Borrower is required to pay under any requirement of this Agreement,
Lender may, but need not, pay the same and charge Borrower’s account therefore and Borrower shall promptly reimburse Lender
therefor. Any and all sums shall become additional indebtedness owing to Lender and shall bear interest at the rate provided in
Paragraph 4 hereof and shall be covered by all security now or hereafter given by Borrower or which Borrower causes to be given
to Lender. Lender need not inquire as to, or contest the validity of, any such expense, tax, security interest, encumbrance or
lien, and the receipt for the payment thereof from the appropriate governmental agency or other entity shall be conclusive evidence
that the same was validly due and owing

.

15.
All documents to be delivered by Borrower to Lender shall contain such terms and be in such form as Lender may require. Each assignment,
pledge or other security agreement shall include and cover all of Borrower’s right, title, and interest in property described
therein and all of Borrower’s books, records, and files relating thereto. All ledger sheets, files, records and documents,
files and records relating to Accounts, Inventory, or other Collateral assigned to Lender shall, unless delivered to or removed
by Lender, be kept on the Premises in trust for, and without cost to Lender. Lender may at any time remove from the Premises all
documents, files and records relating to the Collateral.

 

    	 	 Page 7 of 19	 

    	 

    

 

16.
Prior to Lender’s first verification of Inventory or audit of Borrower’s Accounts, Lender may, in Lender’s sole
discretion, determine or redetermine the Value of Borrower’s Inventory and value of Accounts by applying to Borrower’s
assigned values thereof such percentage as Lender deems appropriate, based upon Lender’s initial sample or other basis.
Lender may likewise determine or redetermine the values thereof between Lender’s Inventory verifications and audits of Borrower’s
Accounts, based upon Lender’s last preceding verification, audit, sampling, review, or other basis in Lender’s sole
discretion.

 

17.
Borrower acknowledges and agrees that Lender may from time to time at its discretion obtain or prepare such further credit reports
and other reports as it may deem necessary to continue to keep itself apprised regarding the continued financial condition of
Borrower and hereby authorizes Lender to obtain or prepare such credit and other reports from time to time as Lender deems appropriate.

 

18.
Lender may, at any time, without notice to or the assent of Borrower, (a) after the occurrence of an Event of Default, or (b)
as necessary in Lender’s discretion in light of the facts and circumstances to protect Lender’s interest: (i) notify
any account debtor that its Accounts have been assigned to Lender by Borrower and that payment thereof is to be made to the order
of, and directed solely to, Lender; and (ii) send, or cause to be sent by its designee,
written or telephonic requests for verification of any Accounts directly to the applicable account debtor. At Lender’s request,
all invoices and statements sent to any account debtor shall state that the relevant Accounts have been assigned to Lender and
that any payments in respect thereof are payable directly and solely to Lender. Borrower shall direct, at Borrower expense and
in the manner requested by Lender from time to time in its sole discretion, that payments and other proceeds of Accounts and other
Collateral be sent to Lender which manner may include, without limitation, being sent: (i) directly to a Lender owned bank account;
(ii) directly by account debtor(s) to a post office box (the “Post Office Box”),
owned by Lender or Borrower and designated in the name of Lender or Borrower, but as to which access is limited solely
to Lender; (iii) directly by account debtor(s) to a deposit account maintained by Borrower, provided (1) Lender has received a
control agreement over same, in form acceptable to Lender, and (2) such account is a blocked account to which only Lender may
have access (the “Blocked Account”); or (iv) directly by account debtor(s) to a lockbox account (the “Lockbox”)
owned by Lender or Borrower, and maintained in Borrower’s or Lender’s name by a financial institution or other party
acceptable to Lender, which Lockbox shall also have an associated Blocked Account (collectively, the “Lockbox Account”),
with Lender to receive a lockbox control agreement and/or a blocked account control agreement, each in form acceptable to Lender,
and as to which Lockbox Account only Lender may have access. Hereinafter, the Post Office Box, the Blocked Account, and/or the
Lockbox Account are referred to as the “Collateral Control Account(s)”. Borrower hereby grants to Lender a security
interest in its interests in the Collateral Control Account(s) and, without limitation, the items deposited therein and funds
therein, over which Collateral Control Account(s) Borrower shall have no control and into which remittances and other collections
and proceeds of Accounts and other Collateral shall be deposited immediately upon their receipt.

 

19.
With respect to any Blocked Account or Lockbox Account, Borrower (at its expense) shall cause the provider of such account to
deliver duplicate copies to Lender on each Business Day (or Lender shall be provided with on-line access and a password so that
it can directly obtain copies) of (i) checks received in such account, (ii) envelopes, remittance papers, and other detail which
might be included in the envelope with remittances, and (iii) an account batch listing (or similar reporting) which details the
sequence number, dollar amount of checks, deposit total and account number credited for each deposit (all of the foregoing, the
“Remittance Reporting”). In the event that the provider of such account will not deliver duplicate copies to Lender
(or provide on-line access to Lender), Borrower agrees to deliver to Lender copies of the Remittance Reporting on each Business
Day. Borrower acknowledges and agrees that notwithstanding anything to the contrary contained in this Agreement, remittances and
other collections and proceeds of Accounts and other Collateral made to such account shall not be deemed received by Lender (and
the Obligations shall not be credited nor shall Clearance Days commence) until Lender has received the Remittance Reporting.

 

20.
If instead, Lender in writing grants Borrower the revocable privilege to collect, at Borrower’s expense, some or all of
the payments or other proceeds of Accounts and other Collateral, such privilege shall be upon the express conditions that all
such payments and other proceeds shall (a) be received by Borrower in trust for Lender; (b) not be commingled
with Borrower’s funds; (c) be delivered to Lender in kind within twenty-four (24) hours after Borrower’s receipt of
the same; and (d) continue to be delivered to Lender until such time as the Obligations are paid in full and this Agreement is
terminated. Borrower’s collection privilege as described above is subject to revocation by Lender at any time and shall
be automatically revoked upon the occurrence of an Event of Default. Unless the instruments so received by Borrower are dishonored,
Lender shall credit the amount thereof against Borrower’s Obligations to Lender as set forth in Paragraphs 3 and 4 above.

 

    	 	 Page 8 of 19	 

    	 

    

 

21.
Lender is hereby irrevocably appointed Borrower’s attorney-in-fact with authority and power to: (A) endorse Borrower’s
name on any checks, notes, acceptances, money orders, drafts, or other forms of payment or security that may come into Lender’s
possession (whether checks or other forms of payment are (i) in the name of Borrower, (ii) in
any other name under which it now does business or does business in the future, or (iii) in
the names of its products now or in the future, and Borrower additionally agrees not to make any protest of any kind against
Lender for negotiating such checks or other items described herein); (B) sign Borrower’s
name on any invoice or bill of lading related to any Accounts, on drafts against account debtors, on schedules and assignments
of Accounts, on verification of Accounts, and notices to account debtors; (C) establish a lockbox arrangement and/or following
an Event of Default notify the post office authorities to change the address for delivery of Borrower’s mail; (D) following
an Event of Default, receive and open all mail addressed to Borrower and retain all mail relating to Lender’s security,
forwarding all other mail to Borrower; (E) send, whether in writing or by telephone, requests for verification of Accounts; (F)
following an Event of Default, with respect to Accounts or other Collateral, extend the time of payment of, compromise or settle,
and adjust disputes and claims, upon any terms, which may include a release of any account debtor or other obligor; (G) following
an Event of Default, make, settle and adjust all claims of Borrower’s policies of insurance and make all decisions with
respect thereto; (H) following an Event of Default, qualify Borrower to do business in any state if Borrower shall promptly fail
to do so following request by Lender; (I) following an Event of Default and at any other time as Lender may reasonably determine
as necessary, if Borrower has refused or failed to promptly do so, execute and deliver any documents which Lender determines are
reasonably necessary in order to protect the interests of Lender hereunder; and (J) do all things necessary to carry out this
Agreement. Lender shall have the right at any time to enforce Borrower’s rights against the account debtors and obligors,
and Lender may bring all proceedings for collection in Lender’s name or in Borrower’s name and may exercise Borrower’s
right of stoppage in transit, replevin, and reclamation.

 

22.
If any property referred to or covered by any Account assigned to Lender shall remain
in, or revert to, Borrower’s possession, Borrower will forthwith set it apart, mark and designate it as Lender’s Collateral
and promptly notify Lender.

 

23.
Borrower will prepare and deliver to Lender its financial statements, balance sheets, profit and loss statements (and may cause
same to be delivered from any guarantor of any of the Obligations or indebtedness hereunder, “Guarantor”), and such
other reports, analysis, operating data, and/or filings required under securities law as Lender may from time to time reasonably
request orally or in writing, all in form acceptable to Lender, but in any event shall provide the following:

 

	 	(a)	Periodically
    as required by Lender, Reports of Assignment assigning all of Borrower’s Accounts together with supporting documents
    for same as specified by Lender;
	 	 	 
	 	(b)	Quarterly 10Qs and
    10Ks, as applicable, due within forty-five (45) days of each quarter end;
	 	 	 
	 	(c)	Monthly Accounts
    aging due within five (5) days of month end;
	 	 	 
	 	(d)	Monthly accounts
    payable aging due within five (5) days of month end;
	 	 	 
	 	(e)	Payroll tax receipts
    due within ten (10) days of payment. All taxes must be paid when due;
	 	 	 
	 	(f)	Preliminary year-end
    financial statements due within sixty (60) days of fiscal year end;
	 	 	 
	 	(g)	Internally Prepared
    fiscal year-end financial statements due within ninety (90) days of fiscal year end, and federal tax returns (of Borrower
    and Guarantor) due within twenty-five (25) days of filing; and
	 	 	 
	 	(h)	Borrower shall provide
    Lender or cause to be provided to Lender a full, complete and accurate detailed report of all of Borrower’s Inventory
    activity: (1) on a monthly basis from Borrower (for Inventory in its possession), within five (5) days of the end of the prior
    month; and (2) on a monthly basis from any and all public warehouses in possession of any Inventory, within ten (10) days
    of the end of the prior month. 
	 	 	 
	 	(i)	Borrower shall now
    and from time to time hereafter, but not less frequently than monthly, execute and deliver to Lender a detailed designation
    of Inventory from Borrower (for Inventory in is possession) and any and all public warehouses, specifying the cost and, if
    applicable, the market value of Borrower’s raw materials, work in process and finished goods, and further specifying
    such other information as Lender may request, with all such monthly information due within five (5) days of month end from
    Borrower and within ten (10) days of month end from public warehouses. Borrower shall promptly, in writing, notify Lender
    if any of Borrower’s Inventory contains any labels, trademarks, tradenames or other identifying characteristics which
    are the properties of third parties.
	 	 	 
	 	(j)	Other financial
    information or reports as Lender may reasonably require.

 

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24.
Lender or its agents or employees shall have the right (during reasonable business hours if prior to an Event of Default and,
at any time, after an Event of Default) to have access to Borrower’s premises, to
examine, inspect and/or audit any or all of Borrower’s books and records, including but not limited to minute books,
ledgers, records indicating, summarizing or evidencing the assets (including Accounts, Inventory and Equipment) and liabilities,
and all information relating thereto, records indicating, summarizing or evidencing Borrower’s business operations or financial
condition, and all computer programs, disc or tape files, printouts, runs and other computer prepared information and the equipment
containing such information, and permit Lender or its employees or agents to copy and make extracts therefrom. Borrower hereby
irrevocably authorizes all accountants and third parties to disclose and deliver to Lender at Borrower’s expense all financial
information, books and records, work papers, management reports and other information in their possession relating to Borrower.

 

25.
Borrower, at its expense, shall keep the Collateral insured against loss or damage by fire, theft, explosion, sprinklers, and
all other hazards and risks, and in such amounts, as are ordinarily insured against by other owners in similar businesses. Borrower
shall also maintain business interruption, public liability, product liability, and property damage insurance relating to Borrower’s
ownership and use of the Collateral, as well as insurance against larceny, embezzlement, and criminal misappropriation. Additionally,
Borrower shall maintain workers’ compensation insurance coverage for all employees as required by law. All such policies
of insurance shall be in such form, with such companies, and in such amounts as may be reasonably satisfactory to Lender. All
such policies of insurance (except those of public and product liability) shall contain a 438BFU lender’s loss payable endorsement
or comparable endorsement, in a form satisfactory to Lender, showing Lender as additional loss payee thereof (and with respect
to public and product liability shall contain an additional insured endorsement or comparable endorsement, in a form satisfactory
to Lender), and shall contain a waiver of warranties, and shall specify that the insurer must give at least thirty (30) days’
prior written notice to Lender before canceling its policy for any reason. Borrower shall deliver to Lender certified copies of
such policies of insurance and evidence of the payment of all premiums therefor. All proceeds payable under any such policy shall
be payable to Lender to be applied on account of the Obligations. Unless Borrower provides Lender with evidence of the insurance
coverage as required by this Agreement, Lender may purchase such insurance at Borrower’s expense to protect Lender’s
interests. This insurance may, but need not, also protect Borrower’s interests. If any Collateral becomes damaged, the insurance
coverage that Lender purchases may not pay any claim Borrower makes or any claim made against Borrower. Borrower may later cancel
this coverage after providing evidence that Borrower has obtained property coverage elsewhere. Borrower is responsible for the
cost of any insurance purchased by Lender, which shall constitute Lender Expenses (as defined in Paragraph 26). The cost of obtaining
of this insurance may, at Lender’s option, be charged as an Advance and added to the Obligations regardless of whether an
Overadvance results. If the cost is added to the Obligations, the Rate will apply to
this added amount. The effective date of coverage may be the date on which Borrower’s prior coverage lapsed or the date
Borrower failed to provide proof of coverage. The insurance coverage that Lender purchases may be considerably more expensive
than the insurance coverage that Borrower could obtain and may not satisfy any need for property damage coverage or any mandatory
liability insurance requirements imposed by Borrower’s contractual arrangements or applicable law.

 

    	 	 Page 10 of 19	 

    	 

    

 

26.
Borrower promises and agrees to pay all costs and expenses and all attorneys’ fees reasonably incurred by Lender in connection
with and in any way related to this Agreement or the Loan Documents (whether for legal services incurred by and expenses from
outside counsel and/or from in-house counsel) or the transactions contemplated thereby (including without limitation title searches,
title reports, title insurance, recording fees, filing fees, publication fees, appraisals, and the prosecution of motions or actions
seeking relief from any stay or restraint under the United States Bankruptcy Code from pursuing any remedy hereunder), whether
or not suit between Borrower and/or any Guarantor, on the one hand, and Lender, on the other hand, is brought. Borrower shall
pay to Lender all costs reasonably incurred by Lender for the purpose of enforcing Lender’s rights hereunder and under the
Loan Documents, including without limitation: (a) costs of foreclosure; (b) costs of obtaining money damages; and (c) a reasonable
fee for the services of attorneys employed by Lender, whether outside counsel or in house counsel, for any purpose related to
this Agreement, the Loan Documents or the Obligations, including consultation, drafting documents, sending notices or instituting,
prosecuting or defending litigation or arbitration, and in the case of bankruptcy, without limitation, in providing debtor-in
possession financing, in seeking relief from the automatic stay, and in prosecuting a complaint to determine dischargeability
and other matters to enforce Lender’s rights; and (d) costs, and expenses of third party claims or any other suit paid or
incurred by Lender in enforcing or defending the Loan Documents and adjusting or settling disputes and claims with account debtors
with respect to the Accounts; and Lender’s attorneys’ fees and expenses incurred in advising, structuring, drafting,
reviewing, administering, amending, terminating, enforcing the Obligations (all of the foregoing together with any other costs,
expenses, and attorneys’ fees set forth in this Agreement and the Loan Documents, “Lender Expenses”). At Lender’s
option, Lender Expenses may be charged as an Advance and added to the Obligations regardless of whether an Overadvance will result.

 

27.
Borrower shall require and use its best efforts to ensure compliance by all operators and occupants of the Premises with all applicable
Environmental Laws (as defined in Paragraph 28). Borrower agrees to defend, indemnify, save, and hold Lender and its officers,
employees, and agents harmless against all obligations, demands, claims, and liabilities claimed or asserted by any other person
arising out of or relating to discharges or releases of Hazardous Substance or Hazardous Waste (both as defined in Paragraph 28)
into the environment, including ambient air, surface water, ground water, or land, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of Hazardous Substance or Hazardous Waste or the clean-up
or other remediation thereof, and all losses (including without limitation attorneys’ fees and legal and other costs from
outside counsel or in-house counsel) in any way suffered, incurred, or paid by Lender as a result of or in any way arising out
of, following, or consequential thereto; provided, however, that no such indemnification shall apply with respect to any liability
directly arising out of the gross negligence or willful misconduct on the part of Lender or any of its officers, employees and
agents in connection with Hazardous Waste or Hazardous Substance.

 

28.
“Environmental Laws” means all federal, state, local and foreign statutes, laws, regulations, ordinances, rules, judgments,
orders, decrees, permits, concessions, grants, franchises, licenses, agreements or other governmental restrictions relating to
the environment or to emissions, discharges or releases of pollutants, contaminants, petroleum or petroleum products, chemicals
or industrial, toxic or hazardous substances or waste into the environment, including ambient air, surface water, ground water,
or land, or otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal, transport or handling
of pollutants, contaminants, petroleum or petroleum products, chemicals, or industrial, toxic or hazardous substances or waste
or the clean-up or other remediation thereof, including without limitation 42 U.S.C. 9601 (14), Comprehensive Environmental Response,
Compensation and Liability Act of 1980 set forth at 42 U.S.C. 9601 et seq. (“CERCLA”), or the Resource Conservation
and Recovery Act of 1986 set forth at 42 U.S.C. 9601 et seq. (“RCRA”) and all successor statutes and amendments
thereto. “Hazardous Substance” or “Hazardous Waste” means any hazardous waste or hazardous substance,
as defined in 42 U.S.C. 9601 (14) or any successor statute, all as amended from time to time.

 

    	 	 Page 11 of 19	 

    	 

    

 

29.
Without limiting any other portion of this Agreement, all Borrower’s indebtedness and Obligations shall automatically accelerate
and become immediately due and payable, and the revocable collection privilege referred to in Paragraph 20, if applicable, shall
be automatically revoked, upon termination (by lapse of time or otherwise) of this Agreement or upon the happening of any one
of the following which shall constitute an “Event of Default”:

 

(a)
Borrower’s or any Guarantor’s failure to make any payment of any or all of the Obligations to Lender when due;

 

(b)
The occurrence of an Overadvance unless waived by Lender in writing;

 

(c)
Any change in Borrower’s business (including, without limitation, the ownership thereof) or financial condition or that
of any Guarantor, or any change in Borrower’s ability to pay and perform the Obligations when due, or any decline in the
Value of any property given to Lender as security;

 

(d)
Any change in the perfection or priority of any security interest in any Collateral of Borrower or collateral of any Guarantor,
or any change in Lender’s rights and remedies hereunder or under the Loan Documents;

 

(e)
Borrower or any Guarantor fails or neglects to perform, keep, or observe, or is in breach of any term, provision, condition, covenant,
or agreement contained in this Agreement, or any of the Loan Documents, or in any other present or future agreement between Borrower
or any Guarantor, on the one hand, and Lender, on the other hand; any default by Borrower or any Guarantor under, or breach or
violation of, any warranty, representation, obligation, agreement, condition or undertaking contained herein or in any of the
Loan Documents which Borrower or any Guarantor now or hereafter executes and delivers to Lender, or which Borrower or any Guarantor
now or hereafter causes to be executed and delivered to Lender; If an Event of Default occurs under this Paragraph 29(e) and provided
that such Event of Default is not otherwise a specified Event of Default under any other subsection of this Paragraph 29, Borrower
(if such an Event of Default is curable) shall have ten (10) days to cure such an Event of Default occurring solely under this
Paragraph 29(e);

 

(f)
The withdrawal or cancellation of (1) any guaranty of, or any validity agreement or support agreement relating to, the Obligations;
or (2) the termination of, or breach of the terms of, any subordination agreement whereby any indebtedness and/or liens is subordinated
to Borrower’s Obligations and/or Lender’s liens on the Collateral or collateral of any Guarantor;

 

(g)
Borrower or any Guarantor ceases to do business as a going concern, makes an assignment of any property for the benefit of creditors,
or fails to pay its debts or obligations as they become due or otherwise becomes insolvent;

 

(h)
The filing by or against Borrower or any Guarantor of any petition or application in bankruptcy, reorganization, arrangement,
trusteeship or receivership, or other insolvency relief, whether under the United States Bankruptcy Code or otherwise, or the
appointment of a trustee or receiver over all or any part of the property or business of Borrower or any Guarantor;

 

(i)
Any of the property or Collateral covered by any of the security agreements given or caused to be given by Borrower or any Guarantor
to Lender is lost, secreted, misused, destroyed, transferred, or disposed of or is located in any state other than the Collateral
State(s) unless Lender has so agreed in writing;

 

(j)
Borrower’s or any Guarantor’s failure to comply with any, or become subject to any administrative or judicial proceeding
under, any federal, state or local (1) hazardous waste or environmental law; (2) asset forfeiture law; or (3) other law, where
noncompliance may have any effect on the Collateral;

 

(k)
Lender’s receipt, at any time following the Effective Date of a report from the Secretary of State indicating that Lender’s
security interest in the Collateral or collateral of any Guarantor is not prior to all other security interests or encumbrances;

 

    	 	 Page 12 of 19	 

    	 

    

 

(l)
Failure to provide Lender with a waiver and consent from the owner or lessor of any now or hereafter existing Premises or a bailment
agreement or warehouseman’s waiver from the owner, lessor or operator of any now or hereafter existing Premises as applicable,
including following the addition of a new Premises or a change in (1) the location of any of Borrower’s Premises; or (2)
the ownership of any of the Premises;

 

(m)
Any delinquency on Borrower’s or any Guarantor’s part in paying any tax when it comes due;

 

(n)
Borrower makes any prohibited payment on account of indebtedness that has been subordinated in right to payment to the payment
of the Obligations;

 

(o)
Borrower or any Guarantor defaults in the payment or performance under any of its material third party agreements, or any material
third party agreement to which either is party is cancelled, matures or terminates, and which circumstances would have a negative
effect on either of such parties;

 

(p)
Borrower or any Guarantor is enjoined, restrained, or in any way prevented by court order from continuing to conduct all or any
part of its business affairs;

 

(q)
A judgment or other claim is entered against Borrower or any Guarantor or becomes a lien or encumbrance upon any property of Borrower
or any Guarantor;

 

(r)
Any property of Borrower or any Guarantor is attached, seized, subjected to a writ or distress warrant or is levied upon;

 

(s)
A notice of lien, levy or assessment is filed with respect to any property of Borrower or any Guarantor by any governmental authority,
or any debts owing to any governmental authority becomes a lien upon any of such property; or

 

(t)
An event of default under any of the Loan Documents or in connection with any of the Obligations shall be an Event of Default
under this Agreement, and vice versa.

 

30.
Upon the occurrence of any Event of Default described in Paragraph 29, all Obligations shall, without notice or demand, become
immediately due and payable at Lender’s option. Thereafter, all amounts outstanding shall bear interest at the rate of an
additional four percent (4.00%) per annum in excess of the Rate (the “Default Rate”). Lender may, upon the
occurrence of an Event of Default, exercise and all rights and remedies pursuant to the laws of the State of California, the UCC,
the Loan Documents or other applicable law, and Lender may cease making Advances or extending credit to or for the benefit of
Borrower under this Agreement, the Loan Documents, or any other agreement between Borrower and Lender. Lender may, upon the occurrence
of an Event of Default, revoke Borrower’s right (as permitted in this Agreement) to sell, license or otherwise dispose of
any of the Collateral including, without limitation, (a) its right to sell Inventory in the ordinary course of business free and
clear of Lender’s security interest therein, and (b) Borrower’s right to grant non-exclusive licenses of the Collateral
in the ordinary course of business. Upon the occurrence of any such Event of Default, Lender may immediately, or at any time or
times thereafter, without any demand or notice to Borrower or any Guarantor and without advertisement or notice, all of which
are expressly waived, commence an action for the recovery of any and all such Obligations, commence proceedings, without giving
any warranties of merchantability, fitness for purpose, title or similar warranty, to sell, lease or otherwise dispose of any
and all Collateral covered by this Agreement and by all security agreements given or caused to be given by Borrower to Lender
or, without legal proceedings, enter such places as any of such Collateral may be found and take possession of such Collateral
and sell the same. Lender is hereby granted an irrevocable license or other right to use, without charge, Borrower’s labels,
patents, copyrights, rights of use of any name, trade secrets, trade names, trademarks, service marks, and advertising matter,
or any property of a similar nature, as it pertains to the Collateral, in completing production of, advertising for sale, and
selling any Collateral and Borrower’s rights under all licenses shall inure to Lender’s benefit. Such Collateral may
be sold where it is located at the time of the breach or default, or elsewhere, at public or private sale, for cash, upon credit
or otherwise at Lender’s sole option and discretion. With respect to any of Borrower’s owned or leased Premises, Borrower
hereby grants Lender a license to enter into possession of such Premises and to occupy the same, without charge, for up to one
hundred twenty (120) days in order to exercise any of Lender’s rights or remedies provided herein or in any of the other
Loan Documents, at law, in equity, or otherwise. Lender and Borrower waive any requirements that such property be physically present
at the place of sale. Lender shall provide Borrower such notice of any private or public sale as may be reasonable. Lender has
no obligation to clean up or otherwise prepare the Collateral for sale. Lender may specifically disclaim any warranties of title
or any similar warranty. Any person, including Lender, may purchase at any such sale, free from any right of redemption which
is expressly waived by Borrower, and if Lender is the purchaser, may turn all or part of any of Borrower’s indebtedness
to Lender in toward payment of the purchase price. The proceeds of any such sale or other disposition shall be applied, first,
to all costs, charges and expenses incurred in taking, removing, holding, repairing and selling such Collateral, including without
limitation, all attorneys’ fees and costs incurred by Lender, and second, to the payment of all Obligations, whether due,
or to become due, and whether arising under this Agreement or otherwise. The surplus, if any, shall be delivered to Borrower or
as otherwise required by applicable law. Borrower shall pay any deficiency forthwith.

 

    	 	 Page 13 of 19	 

    	 

    

 

31.
Borrower waives presentment, demand, protest, and notice of dishonor as to any instrument. Borrower consents to any extensions,
modifications, allowances, compromises or releases of security which Lender may grant, none of which shall release Borrower or
any Guarantor from, or affect, any of Borrower’s or any Guarantor’s obligations.

 

32.
This Agreement shall be effective on the Effective Date and shall remain in full force and effect for a period of twelve (12)
month(s) (the “Basic Term”). Notwithstanding the preceding sentence, this Agreement shall be renewed automatically
for successive periods (each, a “Renewal Term”) equal to the Basic Term unless this Agreement is terminated by Borrower
giving written notice (a “Termination Notice”) to Lender specifying such termination. Termination Notices shall be
given by the means specified in Paragraph 35 specifying such termination not less than thirty (30) days prior to the effective
date of such termination, addressed to Lender at the address set forth herein, and the termination shall be effective as of the
date fixed in such notice. Notwithstanding the foregoing, Lender reserves the right to terminate this Agreement at Lender’s
sole discretion upon giving ninety (90) days’ prior written notice to Borrower or should an Event of Default occur, Lender
may terminate this Agreement at any time without prior notice. After termination and when Lender has finally received all sums
due on account of the Obligations, Lender shall reassign to Borrower all Collateral held by Lender, and shall execute a cancellation
of, and/or reconveyance under, all security agreements given by Borrower to Lender.

 

33.
If the Obligations are prepaid in full on a final basis prior to the end of the Basic Term or any Renewal Term, a “Prepayment”
shall be deemed to have occurred. In the event that such Prepayment shall have occurred, Borrower shall pay to Lender a prepayment
fee in an amount equal to the Minimum Monthly Interest Payment times the amount of months remaining in the then applicable Basic
Term or Renewal Term if such Prepayment occurs at any time including during a Renewal Term (the “Prepayment Fee”),
provided, that the Prepayment Fee shall be waived if a Prepayment occurs after the first six (6) months of the applicable Basic
Term or Renewal Term, and, provided further, that there shall be no Prepayment Fee if (pursuant to Paragraph 32) Lender in its
sole discretion terminates this Agreement in the absence of an Event of Default upon giving 90 days’ prior written notice
to Borrower. In addition, Borrower shall also pay any prepayment fees provided for in any other agreement with Lender. The Prepayment
Fee provided for in this Section 33 and in any other agreements with Lender shall be deemed included in the Obligations. A Prepayment
may be deemed to have occurred regardless of whether such payment or other reduction (a) is voluntary or involuntary; (b) is occasioned
by Lender’s acceleration of the Obligations or demand hereunder; (c) is made by Borrower or other third party, including
any Guarantor; (d) results from Lender’s receipt or collection of proceeds of Collateral, including insurance proceeds or
condemnation awards; (e) results from Lender’s exercise of Lender’s right of setoff; and/or (f) is made during a bankruptcy,
insolvency, reorganization or other proceeding, or is made pursuant to any plan of reorganization or liquidation.

 

34.
Lender may, in its discretion, institute reserves or make Advances under this Agreement or under any other agreements evidencing
the Obligations in connection with amounts due from Borrower or any Guarantor to Lender under this Agreement or under any other
agreements evidencing the Obligations. Lender may at its option to protect the interests of Lender institute reserves or advance
sums to Borrower or any Guarantor under the Agreement or under any other agreements evidencing the Obligations and pay such sums
directly to a third party (including in the event there is an obligation owed by Borrower or any Guarantor to the third party
or in the event the third party is also a borrower of Lender).

 

    	 	 Page 14 of 19	 

    	 

    

 

35.
All notices or demands hereunder shall be in writing and may be made, and deemed to be given, as follows: (a) if delivered in
person or by courier (overnight or otherwise), on the date when it is delivered; (b) if by facsimile, when received at the correct
number (proof of which shall be an original facsimile transmission confirmation slip or equivalent); or (c) if sent by certified
or registered mail or the equivalent, on the earlier of the date such mail is actually delivered or three (3) days after deposit
thereof in the mail, unless the date of actual delivery or such date three (3) days after deposit thereof in the mail (as applicable)
is not a business day in which case such communication shall be deemed given and effective on the first following business day.
Any such notice or communication given hereunder shall be addressed to the intended recipient at its address or facsimile number
specified in the preamble to this Agreement. The parties hereto may change the address or at which they are to receive notices
hereunder, by notice in writing in the foregoing manner given to the other.

 

36.
Borrower has the risk of loss of the Collateral. Lender shall not be liable or responsible for the safekeeping of any Collateral.
Lender shall not be responsible for any lost profits of Borrower arising from any breach of contract, tort, or any other wrong
arising from the establishment, administration, or collection of the Obligations. Lender has no duty to collect any income accruing
on the Collateral or to preserve any rights relating to the Collateral.

 

37.
Borrower hereby releases and exculpates Lender, Lender’s officers, employees, agents, designees, attorneys, directors, shareholders,
and accountants (the “Lender Parties”) from any liability arising from any acts under this Agreement, the documents
executed in connection with this Agreement or subsequent to this Agreement or in furtherance thereof (each individually and collectively
the “Loan Documents”), whether of omission or commission, and whether based upon any error of judgment or mistake
of law or fact, except to the extent of any liability caused by any of the Lender Parties’ gross negligence or willful misconduct
as finally determined by a court of competent jurisdiction, but in no event shall the Lender Parties have any liability to Borrower
for lost profits or other special or consequential damages. Borrower agrees to indemnify the Lender Parties against, and hold
each of them harmless from, any liability of any kind or nature, including attorneys’ fees and Lender’s Expenses which
may be imposed upon, incurred by, or asserted against any of the Lender Parties, in any way relating to or arising out of this
Agreement or the transactions contemplated hereby, except to the extent of any liability caused by any of the Lender Parties’
gross negligence or willful misconduct as finally determined by a court of competent jurisdiction, with the foregoing indemnity
and hold harmless to survive termination of this Agreement and payment and performance of the Obligations and continue thereafter.

 

38.
If there are two or more Borrowers, then (a) Advances and other Obligations hereunder shall be deemed to be made to and incurred
by each and all Borrowers and each Borrower shall be jointly and severally obligated to repay the Advances and other Obligations;
(b) each Borrower jointly and severally makes, and is liable for, each and every warranty, representation, obligation, covenant
and undertaking under this Agreement; (c) when permitted by the context, the word “Borrower” shall include and mean
all, or any one of the undersigned Borrowers; (d) each Borrower hereby waives its rights of subrogation, reimbursement, indemnification,
and contribution and any other rights and defenses that are or may become available to any Borrower by reason of Sections 2787
to 2855, inclusive of the California Civil Code or similar provision; (e) each Borrower waives all rights and defenses it may
have if this Agreement is secured by real property, which means, among other things: (1) Lender may collect from any Borrower
without first foreclosing on any real or personal property collateral pledged by Borrower; and (2) if Lender forecloses on any
real property collateral pledged by any Borrower: (i) the amount of the debt may be reduced only by the price for which that collateral
is sold at the foreclosure sale, even if the collateral is worth more than the sale price; and (ii) Lender may collect from any
Borrower even if Lender, by foreclosing on the real property collateral, has destroyed any right any Borrower may have to collect
from any other Borrower. This is an unconditional and irrevocable waiver of any rights and defenses any Borrower may have because
Borrower’s debt is secured by real property. These rights and defenses include, but are not limited to, any rights or defenses
based upon Section 580a, 580b, 580d, or 726 of the Code of Civil Procedure or similar provisions; (f) each Borrower waives all
rights and defenses arising out of an election of remedies by Lender, even though that election of remedies, such as a non-judicial
foreclosure with respect to security for a guaranteed obligation, has destroyed any Borrower’s rights of subrogation and
reimbursement against the principal by the operation of Section 580d of the Code of Civil Procedure or otherwise, and each Borrower
further waives any and all benefits or defenses, if any, arising directly or indirectly under any one or more of Sections 3116,
3118, 3119, 3419, 3605, 9504, 9505, and 9507 of the California Uniform Commercial Code or similar provisions; and (g) each Borrower
hereby agrees that it is jointly and severally, directly, and primarily liable to Lender for payment and performance in full of
all duties, obligations, and liabilities under this Agreement and each other document, instrument, and agreement entered into
by any Borrower with or in favor of Lender in connection herewith, and that such liability is independent of the duties, obligations,
and liabilities of any other Borrower or any other Guarantor, as applicable. Each reference herein to Borrower shall mean each
and every Borrower that is a party hereto, individually and collectively, jointly and severally.

 

    	 	 Page 15 of 19	 

    	 

    

 

39.
Borrower consents to Lender’s use of Borrower’s company names and logos in Lender’s written and oral presentations,
including in Lender’s advertising, promotional, and marketing materials, client lists, news releases, and Web site. In connection
with any client references in such written or oral presentations, Borrower consents to the use of individual names and quotations.
Borrower’s consents herein shall survive termination of this Agreement until such time that Borrower delivers, and Lender
receives, written revocation of such consents.

 

40.
Lender’s rights and remedies under this Agreement and all security agreements shall be cumulative and Lender shall have
all other rights and remedies not inconsistent therewith as provided by law; no exercise by Lender of one right or remedy shall
be deemed an election and no waiver by Lender of any default on Borrower’s part shall be deemed a continuing waiver or course
of dealing. No delay or omission by Lender shall constitute a waiver or election. This Agreement shall be binding on the Effective
Date and this Agreement shall bind and inure to the benefit of heirs, legatees, executors, administrators, successors, and assigns
of Lender and shall bind all parties, which become bound as a borrower to this Agreement. Lender may assign any and all of Lender’s
rights and interests under this Agreement. However, Borrower may not assign this Agreement or any rights hereunder without Lender’s
prior written consent. No such consent by Lender shall release Borrower or any Guarantor. Lender reserves the right to sell, assign,
transfer, negotiate, or grant participations in all or any part of, or any interest in, Lender’s rights and benefits under
each of the documents executed herewith or hereafter. In connection therewith, Lender may disclose all documents and information
that Lender now has or may hereafter acquire relating to any credit extended by Lender to Borrower, or about Borrower or Borrower’s
business, any Guarantor or the business of any such Guarantor, or any Collateral hereunder. If an assignment is made by Lender,
Borrower shall render performance under this Agreement to such assignee. Borrower waives and will not assert against any assignee
any claims, defenses or set-offs that Borrower could assert against Lender except defenses that cannot be waived.

 

41.
Paragraphs and paragraph numbers have been set forth herein for convenience only; unless the contrary is compelled by the context,
everything contained in each paragraph applies equally to all paragraphs herein. Neither this Agreement nor any uncertainty, or
ambiguity herein shall be construed or resolved against Lender or Borrower whether under any rule of construction or otherwise;
on the contrary, this Agreement has been reviewed by all parties and shall be construed and interpreted according to the ordinary
meaning of the words so used as to fairly accomplish the purposes and intentions of all parties hereto. When permitted by the
context, the singular includes the plural and vice versa. No reference to “proceeds” in this Agreement authorizes
any sale, transfer, or other disposition of the Collateral by Borrower (except for sales of Inventory in the ordinary course of
business but subject to the terms of Paragraph 30). “Includes” and “including” are not limiting. “Or”
is not exclusive. “All” includes “any” and “any” includes “all”. Any reference
herein to a “writing”, a “written document”, or an executed document shall also mean an “authenticated”
writing or document or “authentication” (as defined in the UCC) unless Lender shall otherwise require an original
writing.

 

42.
This Agreement and all transactions contemplated hereunder and/or evidenced hereby shall be governed by, construed under, and
enforced in accordance with the internal laws of the State of California without giving effect to conflicts of law principles.
This Agreement and all agreements relating to the subject matter hereof are the product of negotiation and preparation by and
among each party and its respective attorneys, and shall be construed accordingly. The parties waive the provisions of California
Civil Code §1654 or similar provision.

 

43.
Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all accounting determinations shall
be made, and all financial statements required to be delivered hereunder shall be prepared in accordance with GAAP (as in effect
in the United States). All other terms contained in this Agreement, which are not specifically defined herein, shall have
the meanings provided in the UCC to the extent the same are used herein. “GAAP” means generally accepted accounting
principles (as in effect in the United States) set forth in the opinions and pronouncements of the Accounting Principles Board
of the American Institute of Certified Public Accountants and pronouncements of the Financial Accounting Standards Board (or any
successor authority) that are applicable as of the date of determination.

 

    	 	 Page 16 of 19	 

    	 

    

 

44.
Any Collateral pledged to Lender to secure any of the Obligations of Borrower under this Agreement shall also secure any of the
other Obligations of Borrower to Lender under any other agreements between Borrower and Lender, except that any real property
pledged to secure any Obligations of Borrower under this Agreement shall only secure any other Obligation of Borrower if Lender
specifically so agrees in writing.

 

45.
Each and every provision of this Agreement shall be severable from every other provision for the purposes of determining legal
enforceability of any such provision or provisions.

 

46.
This Agreement, together with the Loan Documents, embodies the entire agreement and understanding among and between the parties
hereto with respect to the subject matter hereof and thereof, and supersedes all prior or contemporaneous agreements and understandings
between said parties, verbal or written, express or implied, relating to the subject matter hereof. No promises of any kind have
been made by Lender or any third party to induce Borrower to execute this Agreement or the Loan Documents. No course of dealing,
course of performance or trade usage, and no parol evidence of any nature, shall be used to supplement or modify any terms of
this Agreement or the Loan Documents. Neither this Agreement nor any provisions hereof may be changed, waived, discharged, or
terminated, nor may any consent to the departure from the terms hereof be given, orally (even if supported by new consideration),
but may only be by an instrument in writing signed by all parties to this Agreement. Any waiver or consent so given shall be effective
only in the specific instance and for the specific purpose for which given.

 

47.
This Agreement and any of the Loan Documents may be signed in any number of counterparts, each of which shall be an original,
with the same effect as if all signatures were upon the same instrument. This Agreement and any of the Loan Documents, or a signature
page thereto intended to be attached to a copy of this Agreement or any of the Loan Documents, signed and transmitted by facsimile
machine, telecopier, or other electronic means (including via transmittal of an e-mail or a ‘‘pdf ‘ file) shall
be deemed and treated as an original document. The signature of any person thereon, for purposes hereof, is to be considered as
an original signature, and the document transmitted is to be considered to have the same binding effect as an original signature
on an original document. At the request of any party hereto, any facsimile, telecopy or other electronic document is to be re-executed
in original form by the persons who executed the facsimile, telecopy of other electronic document. No party hereto may raise the
use of a facsimile machine, telecopier, or other electronic means or the fact that any signature was transmitted through the use
of a facsimile machine, telecopier, or other electronic means as a defense to the enforcement of this Agreement or any of the
Loan Documents.

 

48.
If the incurrence or payment of the Obligations by Borrower or any Guarantor or the transfer by either or both of such parties
to Lender of any property of either or both such parties should for any reason subsequently be declared to be void or voidable
under any state or federal law relating to creditor’s rights, including provisions of the United States Bankruptcy Code
(11 U.S.C. §101 et seq.), as amended, and any successor statute relating to fraudulent conveyances, preferences, and
other voidable or recoverable payments or money or transfers or property (collectively, a “Voidable Transfer”), and
if Lender is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the reasonable
advice or its counsel, then, as to any such Voidable Transfer or the amount thereof that Lender is required or elects to repay
or restore, and as to all reasonable costs, expenses, and attorneys’ fees of Lender related thereto, the liability of Borrower
or such Guarantor automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had
never been made.

 

49.
The parties hereby agree that (a) this Agreement is entered into and that Borrower’s performance to Lender occurs
at San Jose, California; and (b) all actions or proceedings arising in connection with this Agreement and/or the Loan Documents
shall be tried and litigated only in the State and Federal courts located in the County of Santa Clara, State of California or,
at the sole option of Lender, in any other court in which Lender shall initiate legal or equitable proceedings and which has subject
matter jurisdiction over the matter in controversy. Each of Borrower and Lender waives, to the extent permitted under applicable
law, any right each may have to assert the doctrine of forum non conveniens or to object to venue to the extent any proceeding
is brought in accordance with this section. BORROWER AND LENDER HEREBY WAIVE ANY RIGHT TO A JURY TRIAL IN ANY ACTION HEREUNDER
OR UNDER THE LOAN DOCUMENTS OR ARISING OUT OF THE TRANSACTIONS BETWEEN BORROWER AND LENDER.

 

    	 	 Page 17 of 19	 

    	 

    

 

WITHOUT
INTENDING IN ANY WAY TO LIMIT THE PARTIES’ AGREEMENT TO WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY, if the above waiver
of the right to a trial by jury is not enforceable, the parties hereto agree that any and all disputes or controversies of any
nature between them arising at any time shall be decided by a reference to a private judge, mutually selected by the parties (or,
if they cannot agree, by the Presiding Judge of the Santa Clara County, California Superior Court) appointed in accordance with
California Code of Civil Procedure §638 as such section may be amended and/or re-numbered from time to time (or pursuant
to comparable provisions of federal law if the dispute falls within the exclusive jurisdiction of the federal courts), sitting
without a jury, in Santa Clara County, California; and the parties hereby submit to the jurisdiction of such court. The reference
proceeding shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§638
through 645.1 inclusive, as such sections may be amended and/or re-numbered from time to time. No provision of this Section shall
limit the right of any party (a) to exercise self-help remedies (including setoff), (b) to foreclose against or sell any collateral,
by power of sale or otherwise, or (c) to obtain or oppose provisional or ancillary remedies from a court of competent jurisdiction
before, after or during the pendency of a reference. The exercise of, or opposition to, any such remedy does not waive the right
of any party to reference pursuant to this Section. In the event of any challenge to the legality or enforceability of this Section,
the prevailing party shall be entitled to recover the costs and expenses, including reasonable attorneys’ fees, incurred
by it in connection therewith.

 

This
Loan and Security Agreement is subject to the terms and conditions set forth in Addendum A attached hereto and made a part
hereof.

 

IN
WITNESS WHEREOF, the parties hereto have caused this Loan and Security Agreement to be executed as of the date first set forth
above.

 

	NEPHROS,
    INC.,	TECH
    CAPITAL, LLC,
	A
    Delaware corporation	A
    California limited liability company
	(“Borrower”)	(“Lender”)
	 	 	 	 
	By:	/s/
    Daron Evans	By:	/s/
    Jeffrey Johnson
	 	Daron
    Evans	 	Jeffrey
    Johnson
	Its:	 President & Chief Executive Officer	Its:	 Sr. Vice President & Division Manager

 

    	 	 Page 18 of 19	 

    	 

    

 

Addendum
A to Loan and Security Agreement

 

Pursuant
to this Addendum A to Loan and Security Agreement (this “Addendum”), the foregoing Loan and Security Agreement (the
“Agreement”) by and between TECH CAPITAL, LLC, a California limited liability company (“Lender”)
and NEPHROS, INC., a Delaware corporation (“Borrower”) is hereby amended and/or supplemented by the following
terms and conditions set forth below.

 

1.
The following new Paragraph is hereby added to the Agreement:

 

“50.
Borrower has disclosed to Lender that it has entered into those certain “11% Unsecured Promissory Notes” issued during
June, 2016 (individually and collectively, the “Subordinated Notes”) with various noteholders (individually and collectively,
the “Noteholders”), with the aggregate original principal amount of such Subordinated Notes totaling $1,187,000 (individually
and collectively, the “Existing Subordinated Debt). Borrower hereby agrees that the Subordinated Notes (or any documents
evidencing same or relating thereto) shall not, without the prior written consent of Lender, be modified or amended. So long as
no Event of Default exists under this Agreement, Borrower may make regularly scheduled interest only payments (at an aggregate
interest rate not greater than 11% per annum) on the Existing Subordinated Debt to the Noteholders pursuant to the terms the Subordinated
Notes (reviewed and approved by Lender), but no other payments (including no principal payments), fees or other compensation of
any kind. In connection with the Subordinated Notes, Borrower hereby irrevocably authorizes Lender (at its option, but without
obligation) from time to time: (a) to institute a reserve under the Borrowing Base for upcoming payments due thereunder; and (b)
to make any and all payments due thereunder.

 

2.
Conditions Precedent to Initial Advance. The following are hereby added to the Agreement as conditions precedent to the
initial Advance, with any such unfulfilled conditions precedent (unless waived by Lender) to become conditions subsequent to
be immediately satisfied :

 

	(a)	The
    delivery, execution, resolution and/or completion (as applicable), to Lender’s satisfaction, of all other documents,
    matters or acts required by Lender in connection with the transactions contemplated by this Agreement (including without limitation
    the below noted documents, matters or acts), and Lender’s execution of this Agreement:

 

	 	(1)
    	Lender’s
    receipt of the following from Borrower’s subsidiary Nephros International Limited:

	 	 	(i)	General
    Continuing Guaranty;
	 	 	(ii)	Security
    Agreement (All Assets); and
	 	 	(iii)	Secretary’sCertificate
    Guaranty Resolution.

	 	(2)	Lender’s
    receipt of an executed Validity and Support Agreement from Andy Astor;
	 	(3)	Lender’s
    receipt of an executed Warehouse Bailment Agreement in its favor from LansdaleWarehouse Co Inc.;
	 	(4)	Lender’s
    receipt of executed Debt Subordination Agreements in its favor from Lambda Investors LLC and Kash Flow 18 LLC;
	 	(5)	Borrower’s
    satisfaction of all “Conditions” and other requirements set forth in that certain “Summary of Terms (Revised)”
    dated August 1, 2017.

 

	(b)	Lender’s
    receipt of the initial Loan Fee.
	(c)	The
loan facility contemplated by this Agreement and the Loan Documents shall have closed and the initial Advance hereunder shall
have occurred no later than August 31, 2017.

 

3.
Conditions Subsequent. The following are hereby added as conditions subsequent to continued Advances under the Agreement and
any other loan documents evidencing the Obligations: [None]Exhibit

EXHIBIT 10.1

FOURTH INCREMENTAL TERM FACILITY AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT, dated as of August 23, 2017 (this “Incremental Term Facility Amendment”), among Sabre GLBL Inc., a Delaware corporation (the “Borrower”), Sabre Holdings Corporation, a Delaware corporation (“Holdings”), each of the other Loan Parties, Bank of America, N.A., as administrative agent (the “Administrative Agent”), and the Lenders party hereto (each a “2017 B-1 Incremental Term Lender” and, collectively “2017 B-1 Incremental Term Lenders”).  The joint lead arrangers and joint lead bookrunners for the Fourth Incremental Term Facility Amendment are Merrill Lynch, Pierce, Fenner & Smith Incorporated (together with its designated affiliates), Goldman Sachs Lending Partners LLC, JP Morgan Chase Bank, N.A., Mizuho Bank, Ltd., Morgan Stanley MUFG Loan Partners, LLC, acting through The Bank of Tokyo-Mitsubishi UFJ, Ltd., a member of MUFG, a global financial group and  Morgan Stanley Senior Funding, Inc., PNC Bank, National Association and Wells Fargo Securities, LLC.
WHEREAS, the Borrower, Holdings, the Lenders and the Administrative Agent are parties to that certain Amended and Restated Credit Agreement dated as of February 19, 2013 (as amended, amended and restated, modified and/or supplemented through the date hereof, the “Credit Agreement”), pursuant to which the Lenders have extended credit to the Borrower;
WHEREAS, in accordance with the provisions of Section 2.14 of the Credit Agreement and pursuant to a request for Incremental Term Loans in the form of a term sheet dated as of August 1, 2017, posted to a website for the benefit of the Lenders and the 2017 B-1 Incremental Term Lenders, the Borrower has notified the Administrative Agent that it is requesting that the 2017 B-1 Incremental Term Lenders provide 2017 B-1 Incremental Term Loans (as defined below) in the aggregate principal amount of $1,890,500,000 (the “Incremental Request”) on the terms and conditions set forth in this Incremental Term Facility Amendment, the proceeds of which will be used to repay all existing Term B Loans incurred prior to the date hereof (such Term Loans, the “Existing Term B Loans”); 
WHEREAS, in accordance with the provisions of Section 2.14 of the Credit Agreement and the terms and conditions set forth herein, the Borrower, Holdings, each of the other Loan Parties, the 2017 B-1 Incremental Term Lenders and the Administrative Agent wish to effect this Incremental Term Facility Amendment with respect to the Incremental Request; 
WHEREAS, the Lenders party hereto wish to amend certain provisions of the Credit Agreement as hereinafter provided, on the terms and subject to the conditions set forth herein;
NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto hereby agree as follows: 
SECTION 1    Defined Terms.  Capitalized terms used but not defined herein shall have the meanings assigned to such terms in the Credit Agreement.
SECTION 2    Incremental Term Loan Amendment.
(a)    For the avoidance of doubt, (i) this Incremental Term Facility Amendment constitutes an “Incremental Term Facility Amendment” pursuant to which a new Class of Incremental Term Loans is established pursuant to Section 2.14 of the Credit Agreement and (ii) from and after the Fourth Incremental Amendment Effective Date (as hereinafter defined), (A) each reference to “Term B Loan” and “Term B Borrowings” (and related terms as appropriate) in the Credit Agreement (as amended pursuant to Section 3 hereof) and the other Loan Documents shall be deemed to refer to, and constitute, the 2017 B-1 

	
			
	 
	 
	 

Incremental Term Loans (or a Borrowing thereof, as appropriate) established pursuant to this Incremental Term Facility Amendment, (B) each 2017 B-1 Incremental Term Lender shall constitute a “Lender”, a “Term B Lender” and a “Term Lender” as defined in the Credit Agreement (as amended pursuant to Section 3 hereof) and (C) each reference to a “Term B Commitment” in the Credit Agreement (as amended pursuant to Section 3 hereof) shall be deemed to refer to, and constitute, a 2017 B-1 Incremental Term Commitment (as defined below).
(b)    Subject to the terms and conditions set forth herein and the occurrence of the Fourth Incremental Amendment Effective Date (as defined below), each 2017 B-1 Incremental Term Lender agrees and shall be obligated to make 2017 B-1 Incremental Term Loans to the Borrower on the Fourth Incremental Amendment Effective Date in an amount equal to the amount of its 2017 B-1 Incremental Term Commitment.  On the Fourth Incremental Amendment Effective Date (after giving effect to this Incremental Term Facility Amendment) the aggregate outstanding amount of the 2017 B-1 Incremental Term Loans shall be $1,890,500,000.
(c)    The Administrative Agent has prepared a schedule, in consultation with the Borrower, which sets forth the allocated commitments (with respect to each 2017 B-1 Incremental Term Lender, its “2017 B-1 Incremental Term Commitment” and, collectively, the “2017 B-1 Incremental Term Commitments”) of each 2017 B-1 Incremental Term Lender with respect to the 2017 B-1 Incremental Term Loans.  The Administrative Agent has notified each 2017 B-1 Incremental Term Lender of its allocated 2017 B-1 Incremental Term Commitment and each 2017 B-1 Incremental Term Lender by providing its 2017 B-1 Incremental Term Commitment and/or agreeing to the Term Loan Conversions (as defined below), as applicable, has consented to the terms of this Incremental Term Facility Amendment.  On the Fourth Incremental Amendment Effective Date, all then outstanding Existing Term B Loans shall be repaid in full as follows:
(i)    the outstanding aggregate principal amount of Existing Term B Loans of each existing Term B Lender under the Credit Agreement with respect to Existing Term B Loans immediately prior to giving effect to this Incremental Term Facility Amendment (each, an “Existing Term Lender”) which has executed this Fourth Incremental Term Facility Amendment by executing option A on its signature page and that has a 2017 B-1 Incremental Term Commitment (each, a “2017 Converting B-1 Lender”) shall automatically be converted into 2017 B-1 Incremental Term Loans (each, a “2017 Converted B-1 Incremental Term Loan”) in a principal amount equal to such 2017 Converting B-1 Lender’s 2017 B-1 Incremental Conversion Amount (as defined below) (the “Term Loan Conversion”);
(ii)    Bank of America, N.A. (the “New 2017 B-1 Incremental Term Lender”) agrees to make to the Borrower a new Term Loan (each, a “New 2017 B-1 Incremental Term Loan” and, collectively, the “New 2017 B-1 Incremental Term Loans” and, together with the 2017 Converted B-1 Incremental Term Loans, the “2017 B-1 Incremental Term Loans”) in a principal amount equal to the New 2017 B-1 Incremental Term Lender’s 2017 B-1 Incremental Term Commitment on the Fourth Incremental Amendment Effective Date in accordance with the terms and conditions of this Incremental Term Facility Amendment;
(iii)    to the extent any Existing Term Lender has a 2017 B-1 Incremental Term Loan Conversion Amount (as defined below) that is less than the full outstanding principal amount of the Existing Term B Loans of such Existing Term Lender, such Existing Term Lender shall be repaid in cash with the proceeds of the 2017 B-1 Incremental Term Loans in an amount equal to the difference between the outstanding principal amount of the Existing Term B Loans of such Existing Term Lender and such Existing Term Lender’s 2017 B-1 

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Incremental Term Loan Conversion Amount (the “Non-Converting Portion”).  As used herein, “2017 B-1 Incremental Term Loan Conversion Amount” shall mean, as to any 2017 Converting B-1 Lender, the final amount of such 2017 Converting B-1 Lender’s 2017 B-1 Incremental Term Commitment on the Fourth Incremental Amendment Effective Date. The “2017 B-1 Incremental Term Loan Conversion Amount” of any 2017 Converting B-1 Term Lender shall not exceed (but may be less than) the outstanding principal amount of such 2017 Converting B-1 Term Lender’s Existing Term B Loans (determined immediately prior to the Fourth Incremental Amendment Effective Date).  All such determinations made by the Administrative Agent and the Borrower shall, absent manifest error, be final, conclusive and binding on the Borrower and the Lenders, and the Administrative Agent and the Borrower shall have no liability to any Person with respect to such determination; and
(iv)    the outstanding aggregate principal amount of Existing Term B Loans of each Term B Lender which (i) is an Existing Term Lender and (ii) is not a 2017 Converting B-1 Lender (a Lender meeting the requirements of the immediately preceding clauses (i) and (ii), each, a “Non-Converting Lender”) shall be repaid in full in cash with respect to its Existing Term B Loans with the proceeds of the 2017 B-1 Incremental Term Loans.
(d)    Each 2017 B-1 Incremental Term Lender hereby agrees to “fund” its 2017 B-1 Incremental Term Loans in an aggregate principal amount equal to such 2017 B-1 Incremental Term Lender’s 2017 B-1 Incremental Term Commitment as follows:
(i)    each 2017 Converting B-1 Lender shall fund its Converted 2017 B-1 Incremental Term Loans to the Borrower by converting all or a portion of its then outstanding principal amount of Existing Term B Loans into a Converted 2017 B-1 Incremental Term Loan in an equal principal amount as provided in clause (c)(ii) above; and
(ii)    the New 2017 B-1 Incremental Term Lender shall fund in cash an amount equal to its 2017 B-1 Incremental Term Commitment to the Borrower.
(e)    On the Fourth Incremental Amendment Effective Date, the Borrower shall pay in cash (x) all accrued but unpaid interest owing with respect to the Existing Term B Loans through the Fourth Incremental Amendment Effective Date and (y) to each Existing Term Lender, any loss, expense or liability due under Section 3.05 of the Credit Agreement.
(f)    Promptly following the Fourth Incremental Amendment Effective Date, all Notes, if any, evidencing the Existing Term B Loans shall be cancelled, and any 2017 B-1 Incremental Term Lender may request that its 2017 B-1 Incremental Term Loan be evidenced by a Note pursuant to Section 2.11 of the Credit Agreement.
(g)    Notwithstanding anything to the contrary contained in the Credit Agreement, the proceeds of the 2017 B-1 Incremental Term Loans will be used (x) first, to repay the outstanding principal amount of all Existing Term B Loans on the Fourth Incremental Amendment Effective Date and (y) second, for general corporate purposes.
(h)    The New 2017 B-1 Incremental Term Lender hereby (i) represents and warrants that (A) it has full power and authority, and has taken all action necessary, to become a Lender under the Credit Agreement, (B) from and after the Fourth Incremental Amendment Effective Date, it shall be bound by the provisions of the Credit Agreement as a Lender thereunder and, to the extent of its 2017 B-1 Incremental Term Commitments and New 2017 B-1 Incremental Term Loans, shall have the obligations of a Lender thereunder and (C) it has received a copy of the Credit Agreement, together with copies of the most recent 

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financial statements delivered pursuant to Section 6.01 thereof, and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Incremental Term Facility Amendment and to provide 2017 B-1 Incremental Term Commitments and to make New 2017 B-1 Incremental Term Loans on the basis of which it has made such analysis and decision independently and without reliance on any Agent or any other Lender, and (ii) agrees that (A) if it is a Foreign Lender, it will promptly (and no later than the Fourth Incremental Amendment Effective Date) deliver to the Administrative Agent any information that is required to be delivered by it pursuant to Section 3.01 of the Credit Agreement, (B) it will, independently and without reliance on any Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement and (C) it will perform in accordance with their terms all of the obligations which by the terms of the Credit Agreement are required to be performed by it as a Lender.
(i)    The Borrower hereby consents, for purposes of Section 11.07(b)(i)(A) of the Credit Agreement, to the assignment on or within ninety (90) days of the Fourth Incremental Amendment Effective Date of any New 2017 B-1 Incremental Term Loans by Bank of America, N.A., as an 2017 B-1 Incremental Term Lender, to (A) any Person that was an Existing Term Lender on the Fourth Incremental Amendment Effective Date (immediately prior to giving effect thereto) or (B) any Eligible Assignee separately identified, and acceptable, to the Borrower.
SECTION 3    Amendments to the Credit Agreement.  Each of the parties hereto (which, after giving effect to the incurrence of the 2017 B-1 Incremental Term Loans, includes the Required Lenders) agrees that, effective on the Fourth Incremental Amendment Effective Date (immediately after giving effect to incurrence of the 2017 B-1 Incremental Term Loans), the Credit Agreement shall be amended as follows:
(a)    The definition of “Applicable Rate” appearing in Section 1.01 of the Credit Agreement is hereby amended by:
(i)    restating the lead in to such definition as follows:
“means (x) with respect to any Term B Loans, (I) for Base Rate Loans, 1.25% and (II) for Eurocurrency Rate Loans, 2.25% and (y) with respect to any Revolving Credit Loans, Letter of Credit Fees and Commitment Fees, the percentages per annum listed in the table below, based upon the Senior Secured First-Lien Net Leverage Ratio as set forth in the most recent Compliance Certificate received by the Administrative Agent pursuant to Section 6.02(a):”; and
(ii)    deleting the first grid appearing therein.
(b)    The definition of “Credit Agreement Refinancing Indebtedness” set forth in Section 1.01 of the Credit Agreement is hereby amended 
(i)    by restating in full clause (b) prior to the proviso set forth therein as follows: 
“(b) Indebtedness incurred pursuant to a Refinancing Amendment, in each case, issued, incurred or otherwise obtained in exchange for, or to extend, renew, replace or refinance, in whole or part, then existing Term Loans, Revolving Credit Commitments, outstanding Revolving Credit Loans and related letters of credit and commitments, (including any successive Credit Agreement Refinancing Indebtedness) (“Refinanced Debt”);”; 
(ii)    by inserting at the beginning of clause (i) of the proviso set forth therein the following text: “other than in the case of Incremental Term A Loan Refinancing Indebtedness,”; 

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(iii)    by restating in full clause (ii) of the proviso set forth therein as follows:
“(ii) such Indebtedness the same maturity or a later maturity than the Refinanced Debt (except such Credit Agreement Refinancing Indebtedness that are Revolving Credit Commitments may in any event have additional mandatory commitment reductions so long as same do not occur prior to the maturity date that previously applied to the commitments being extended)”;
(iv)    by restating in full clause (iii) of the proviso set forth therein as follows:
“(iii) in the case of Term Loans (other than Incremental Term A Loan Refinancing Indebtedness), the scheduled amortization applicable to such Indebtedness shall not exceed 1% per annum of the original aggregate principal amount of such extending, renewing or refinancing Indebtedness (taking into account any additions thereto by way of extensions made as part of the respective Class) at any time prior to the final maturity of the respective Refinanced Debt that are Term Loans”; and
(v)    by inserting the following proviso to the end of such definition:
“; provided that, notwithstanding anything to the contrary above, the Other Term Loans incurred pursuant to a Refinancing Amendment to be entered into on or as of the Fourth Incremental Amendment Effective Date to refinance in full the Incremental Term A Loans incurred prior to the Fourth Incremental Amendment Effective Date  (the “Incremental Term A Loan Refinancing Indebtedness”) shall be deemed to constitute “Credit Agreement Refinancing Indebtedness”.”
(c)    The definition of “Repricing Premium” set forth in Section 1.01 of the Credit Agreement is hereby amended by deleting the text “Third Incremental Amendment Effective Date” appearing therein and inserting the text “Fourth Incremental Amendment Effective Date” in lieu thereof.
(d)    The definition of “Term B Commitment” set forth in Section 1.01 of the Credit Agreement is hereby amended and restated in its entirety as follows:
“‘Term B Commitment’ means as to each Term B Lender, its obligation to make a Term B Loan to the Borrower pursuant to Section 2.01(a)(i) in an aggregate amount not to exceed such Term B Lender’s 2017 B-1 Incremental Term Commitment (as such term is defined in the Fourth Incremental Term Facility Amendment) or in the Assignment and Assumption pursuant to which such Term B Lender becomes a party hereto, as applicable, as such amount may be adjusted from time to time in accordance with this Agreement.  The aggregate Term B Commitments of all Term B Lenders shall be $1,890,500,000 on the Fourth Incremental Amendment Effective Date.”
(e)    Section 1.01 of the Credit Agreement is hereby amended by adding:
(i)    “Fourth Incremental Amendment Effective Date” has the meaning specified in the Fourth Incremental Term Facility Amendment. 
(ii)    “Fourth Incremental Term Facility Amendment” means that certain Fourth Incremental Term Facility Amendment to Amended and Restated Credit Agreement, date as of August 23, 2017, by and among Holdings, the Borrower, the other Loan Parties party thereto, the Lenders party thereto and the Administrative Agent.

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(iii)    “Incremental Term A Loan Refinancing Indebtedness” has the meaning specified in the Fourth Incremental Term Facility Amendment.
(f)    Section 2.01(a)(i) of the Credit Agreement  is hereby amended by (x) deleting the text “Third Incremental Term Facility Amendment” appearing therein and inserting the text “Fourth Incremental Term Facility Amendment” in lieu thereof and (y) deleting the text “Third Incremental Amendment Effective Date” appearing therein and inserting the text “Fourth Incremental Amendment Effective Date” in lieu thereof.
(g)    Section 2.07(a)(i) of the Credit Agreement is hereby amended by deleting the text “Third Incremental Amendment Effective Date” appearing therein and inserting the text “Fourth Incremental Amendment Effective Date” in lieu thereof.
(h)    Section 2.14(a)(i) of the Credit Agreement  is hereby amended by deleting in their entirety both provisos after clause (E).
(i)    Section 2.14(a)(ii) of the Credit Agreement is hereby amended by deleting the text “the date that is 18 months after the Third Incremental Amendment Effective Date” appearing therein and inserting the text “August 22, 2018” in lieu thereof.
(j)    Clause (iii)(y) of the first proviso appearing in Section 2.15(a) of the Credit Agreement is hereby amended by deleting the text “is not prior to” appearing therein and replacing it with “is the same as or later than” in lieu thereof”.
SECTION 4    Representations and Warranties.  To induce the other parties hereto to enter into this Incremental Term Facility Amendment, each Loan Party represents and warrants to each of the Lenders party hereto and the Administrative Agent that:
(a)    the execution, delivery and performance by each Loan Party of this Incremental Term Facility Amendment has been duly authorized by all necessary corporate, limited liability company and/or partnership action, as applicable, of such Loan Party;
(b)    this Incremental Term Facility Amendment has been duly executed and delivered by such Loan Party;
(c)    each of this Incremental Term Facility Amendment, the Credit Agreement and each other Loan Document to which each Loan Party is a party, after giving effect to the amendments pursuant to this Incremental Term Facility Amendment and the transactions contemplated hereby, constitutes a legal, valid and binding obligation of such Loan Party, enforceable against it in accordance with its terms, subject to Debtor Relief Laws and to general principles of equity;
(d)    no material approval, consent, exemption, authorization, or other action by, or notice to, or filing with, any Governmental Authority is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Incremental Term Facility Amendment or the Credit Agreement, after giving effect to the amendments pursuant to this Incremental Term Facility Amendment and the transactions contemplated hereby or for the consummation of the transactions contemplated hereby;
(e)    the execution, delivery and performance by each Loan Party of this Incremental Term Facility Amendment and the performance of the Credit Agreement, after giving effect to the amendments pursuant to this Incremental Term Facility Amendment, are within such Loan Party’s corporate, limited liability company or limited partnership powers, as applicable, and do not and will not (i) contravene 

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the terms of any of such Person’s Organization Documents or (ii) violate any applicable material Law; in the case of this clause (ii), to the extent that such violations would not reasonably be expected to have a Material Adverse Effect; and
(f)    immediately before and after giving effect to this Incremental Term Facility Amendment and the transactions contemplated hereby (i) the representations and warranties of the Borrower and each of the other Loan Parties set forth in Article V of the Credit Agreement and in the other Loan Documents are true and correct in all material respects on and as of the Fourth Incremental Amendment Effective Date, except to the extent such representations and warranties expressly relate to an earlier date, in which case they were true and correct in all material respects as of such earlier date; provided that any representation or warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language is true and correct (after giving effect to any qualification therein) in all respects on such respective dates, and (ii) no Default shall have occurred and be continuing as of the Fourth Incremental Amendment Effective Date, after giving effect to this Incremental Term Facility Amendment and the transactions contemplated hereby.
SECTION 5    Effectiveness.  This Incremental Term Facility Amendment shall become effective as of the date (the “Fourth Incremental Amendment Effective Date”) on which each of the following conditions shall have been satisfied:
(a)    the Administrative Agent (or its counsel) shall have received counterparts of this Incremental Term Facility Amendment that, when taken together, bear the signatures of (i) Holdings, (ii) the Borrower, (iii) each other Guarantor (iv) the Administrative Agent, (iv) each 2017 B-1 Incremental Term Lender and (v) solely with respect to Section 3 hereof, the Lenders constituting Required Lenders (immediately after giving effect to the incurrence of the 2017 B-1 Incremental Term Loans);
(b)    the Administrative Agent shall have received a certificate signed by a Responsible Officer of the Borrower certifying that the condition set forth in clause (f) below has been satisfied on or as of the Fourth Incremental Amendment Effective Date;
(c)    the Existing Term B Loans  of each Non-Converting Lender and the Non-Converting Portion of Existing Term B Loans of each 2017 Converting B-1 Term Lender shall be repaid in cash with the proceeds received from the 2017 B-1 Incremental Term Loans established pursuant to this Incremental Term Facility Amendment and all accrued interest, fees and premiums (if any) in connection with such Existing Term B Loans and the other Existing Term B Loans shall have been paid;
(d)    the Administrative Agent shall have received a certificate from the chief financial officer of the Borrower substantially in the form of the certificate delivered pursuant to Section 4.01(a)(vi) to the Credit Agreement (with appropriate modifications to reflect the consummation of the transactions contemplated by this Incremental Term Facility Amendment on the Fourth Incremental Amendment Effective Date) attesting to the Solvency of the Borrower and its Subsidiaries (taken as a whole) after giving effect to this Incremental Term Facility Amendment and the transactions contemplated hereby;
(e)    the Administrative Agent shall have received such other documents and certificates as the Administrative Agent or its counsel may reasonably request relating to the organization, existence and good standing of each Loan Party and the authorization of this Incremental Term Facility Amendment and amendment of the Credit Agreement and the other transactions contemplated hereby, all in form and substance reasonably satisfactory to the Administrative Agent;
(f)    all of the conditions specified in Section 2.14 of the Credit Agreement with respect to the 2017 B-1 Incremental Term Loans shall have been satisfied;

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(g)    the Administrative Agent shall have received favorable customary legal opinions of (i) Young Conaway Stargatt & Taylor LLP, Delaware counsel to the Loan Parties and (ii) Cleary Gottlieb Steen & Hamilton LLP, New York counsel to the Loan Parties, in each case, as to any matter reasonably requested by the Administrative Agent, addressed to each Lender party hereto and the Administrative Agent, dated the Fourth Incremental Amendment Effective Date and in form and substance reasonably satisfactory to the Administrative Agent, which the Loan Parties hereby request such counsel to deliver; 
(h)    no Default exists as of the Fourth Incremental Amendment Effective Date, both before and immediately after giving effect to this Incremental Term Facility Amendment and the transactions contemplated hereby; 
(i)    all of the representations and warranties of the Borrower and each of the other Loan Parties set forth in Article V of the Credit Agreement and in the other Loan Documents (including this Incremental Term Facility Amendment) are true and correct in all material respects on and as of the Fourth Incremental Amendment Effective Date, except to the extent such representations and warranties expressly relate to an earlier date, in which case they were true and correct in all material respects as of such earlier date; provided that any representation or warranty that is qualified as to “materiality”, “Material Adverse Effect” or similar language is true and correct (after giving effect to any qualification therein) in all respects on such respective dates; 
(j)    the Administrative Agent and the arranger of this Incremental Term Facility Amendment, as applicable, shall have received payment of all fees and other amounts due and payable on or prior to the Fourth Incremental Amendment Effective Date and, to the extent invoiced, reimbursement or payment of all reasonable and documented out-of-pocket costs and expenses required to be reimbursed or paid by the Borrower hereunder or under any other Loan Document, including the reasonable fees, charges and disbursements of counsel for the Administrative Agent; and
(k)    the Borrower shall have paid to the Administrative Agent for the account of each 2017 B-1 Incremental Term Lender, a non-refundable upfront fee in Dollars and in immediately available funds in an amount equal to 0.125% of the aggregate amount of 2017 B-1 Incremental Term Commitments of such 2017 B-1 Incremental Term Lender as in effect on the Fourth Incremental Amendment Effective Date. Such fees shall be fully earned when paid and shall not be refundable for any reason whatsoever.
The Administrative Agent shall notify the Borrower and the 2017 B-1 Incremental Term Lenders of the Fourth Incremental Amendment Effective Date, and such notice shall be conclusive and binding.
SECTION 6    Reaffirmation of Guaranty and Security.  The Borrower and each other Loan Party, by its signature below, hereby (a) agrees that, notwithstanding the effectiveness of this Incremental Term Facility Amendment or the Credit Agreement, after giving effect to this Incremental Term Facility Amendment and the transactions contemplated hereby, the Collateral Documents continue to be in full force and effect and (b) affirms and confirms all of its obligations and liabilities under the Credit Agreement and each other Loan Document, in each case after giving effect to this Incremental Term Facility Amendment and the transactions contemplated hereby, including its guarantee of the Obligations and the pledge of and/or grant of a security interest in its assets as Collateral pursuant to the Collateral Documents to secure such Obligations, all as provided in the Collateral Documents as originally executed, and acknowledges and agrees that such obligations, liabilities, guarantee, pledge and grant continue in full force and effect in respect of, and to secure, such Obligations under the Credit Agreement and the other Loan Documents, in each case after giving effect to this Incremental Term Facility Amendment and the transactions contemplated hereby.
SECTION 7    Reference to and effect on the Credit Agreement.  From and after the Fourth Incremental Amendment Effective Date, the terms “Agreement”, “this Incremental Term Facility 

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Amendment”, “herein”, “hereinafter”, “hereto”, “hereof” and words of similar import, as used in the Credit Agreement, shall, unless the context otherwise requires, refer to the Credit Agreement as amended hereby, and the term “Credit Agreement”, as used in the other Loan Documents, shall mean the Credit Agreement as amended hereby and as may be further amended, supplemented or otherwise modified from time to time.  For the avoidance of doubt, any references to “the date hereof” in the Credit Agreement shall refer to February 19, 2013.
SECTION 8    Counterparts.  This Incremental Term Facility Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Delivery by telecopy or other electronic image scan transmission of an executed counterpart of a signature page to this Incremental Term Facility Amendment shall be effective as delivery of an original executed counterpart of this Incremental Term Facility Amendment.  The Administrative Agent may also require that any such documents and signatures delivered by telecopy or other electronic image scan transmission be confirmed by a manually signed original thereof; provided that the failure to request or deliver the same shall not limit the effectiveness of any document or signature delivered by telecopy or other electronic image scan transmission.
SECTION 9    Governing Law.  THIS INCREMENTAL TERM FACILITY AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.
SECTION 10    Jurisdiction.  ANY LEGAL ACTION OR PROCEEDING ARISING UNDER THIS INCREMENTAL TERM FACILITY AMENDMENT OR IN ANY WAY CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF THE PARTIES HERETO OR ANY OF THEM WITH RESPECT TO THIS INCREMENTAL TERM FACILITY AMENDMENT, OR THE TRANSACTIONS RELATED THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREAFTER ARISING, MAY BE BROUGHT IN THE COURTS OF THE STATE OF NEW YORK SITTING IN NEW YORK CITY (IN THE BOROUGH OF MANHATTAN) OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF SUCH STATE, AND BY EXECUTION AND DELIVERY OF THIS INCREMENTAL TERM FACILITY AMENDMENT, THE BORROWER, HOLDINGS, EACH OTHER GUARANTOR, THE ADMINISTRATIVE AGENT AND EACH LENDER PARTY HERETO CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE EXCLUSIVE JURISDICTION OF THOSE COURTS AND AGREES NOT TO COMMENCE ANY SUCH LEGAL ACTION OR PROCEEDING IN ANY OTHER JURISDICTION, TO THE EXTENT PERMITTED BY APPLICABLE LAW.  THE BORROWER, HOLDINGS, EACH OTHER LOAN PARTY, THE ADMINISTRATIVE AGENT AND EACH LENDER PARTY HERETO IRREVOCABLY WAIVES ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF THIS INCREMENTAL TERM FACILITY AMENDMENT OR OTHER DOCUMENT RELATED THERETO.
SECTION 11    Headings.  The headings of this Incremental Term Facility Amendment are for purposes of reference only and shall not limit or otherwise affect the meaning hereof.
SECTION 12    No Novation.  Other than with respect to the Existing Term B Loans as expressly set forth herein, this Incremental Term Facility Amendment shall not extinguish the Obligations for the payment of money outstanding under the Credit Agreement or discharge or release the lien or priority of any Loan Document or any other security therefor or any guarantee thereof, and the liens and security interests existing immediately prior to the Fourth Incremental Amendment Effective Date in favor of the Administrative Agent for the benefit of the Secured Parties securing payment of the Obligations are in all 

9
	
			
	 
	 
	 

respects continuing and in full force and effect with respect to all Obligations.  Other than with respect to the Existing Term B Loans as expressly set forth herein, nothing herein contained shall be construed as a substitution or novation, or a payment and reborrowing, or a termination, of the Obligations outstanding under the Credit Agreement or instruments guaranteeing or securing the same, which shall remain in full force and effect, except as modified hereby or by instruments executed concurrently herewith.  Nothing expressed or implied in this Incremental Term Facility Amendment or any other document contemplated hereby or thereby shall be construed as a release or other discharge of the Borrower under the Credit Agreement or the Borrower or any other Loan Party under any Loan Document from any of its obligations and liabilities thereunder, and such obligations are in all respects continuing with only the terms being modified as provided in this Incremental Term Facility Amendment.  The Credit Agreement and each of the other Loan Documents shall remain in full force and effect, until and except as modified hereby.  This Incremental Term Facility Amendment shall constitute a Loan Document for all purposes of the Credit Agreement.  Each Guarantor further agrees that nothing in the Credit Agreement, this Incremental Term Facility Amendment or any other Loan Document shall be deemed to require the consent of such Guarantor to any future amendment to the Credit Agreement.
SECTION 13    Notices.  All communications and notices hereunder shall be given as provided in the Credit Agreement.
SECTION 14    Severability.  If any provision of this Incremental Term Facility Amendment is held to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Incremental Term Facility Amendment and the other Loan Documents shall not be affected or impaired thereby.  The invalidity of a provision in a particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.
SECTION 15    Successors.  The terms of this Incremental Term Facility Amendment shall be binding upon, and shall inure for the benefit of, the parties hereto and their respective successors and assigns.
SECTION 16    No Waiver.  Except as expressly set forth herein, this Incremental Term Facility Amendment shall not by implication or otherwise limit, impair, constitute a waiver of or otherwise affect the rights and remedies of the Lenders or the Agents under the Credit Agreement or any other Loan Document, and shall not alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other provision of the Credit Agreement or of any other Loan Document, all of which are ratified and affirmed in all respects and shall continue in full force and effect.  Nothing herein shall be deemed to entitle the Borrower to receive a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any other Loan Document in similar or different circumstances.
[Remainder of this page intentionally left blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Incremental Term Facility Amendment to be duly executed by their duly authorized officers, all as of the date and year first above written.
	
		
	SABRE GLBL INC.,

	 

	By

	 
	/s/ Chris Nester

	 
	Name: Chris Nester

	 
	Title: Senior Vice President and Treasurer

	
		
	SABRE HOLDINGS CORPORATION,

	 

	By 

	 
	/s/ Chris Nester

	 
	Name: Chris Nester

	 
	Title: Senior Vice President and Treasurer

	
		
	EACH OF THE LOAN PARTIES LISTED BELOW, hereby consents to the entering into of this Incremental Term Facility Amendment and agrees to the provisions hereof:

GetThere Inc. 
GetThere L.P. by GetThere Inc., its General Partner
lastminute.com LLC
lastminute.com Holdings, Inc. 
Sabre International Newco, Inc. 
SabreMark G.P., LLC 
SabreMark Limited Partnership by SabreMark G.P., LLC., its General Partner 
TVL Holdings I, LLC 
TVL Holdings, Inc. 
TVL LLC 
TVL LP by TVL LLC, its General Partner
TVL Common, Inc.

	 

	By 

	 
	/s/ Chris Nester

	 
	Name: Chris Nester

	 
	Title: Treasurer

	
		
	Nexus World Services, Inc.
IHS US Inc.
InnLink, LLC 
TravLynx LLC

	 

	By

	 
	/s/ Chris Nester

	 
	Name: Chris Nester

	 
	Title: Treasurer

	
		
	PRISM Group, Inc.

	PRISM Technologies, LLC

	By

	 
	/s/ Chris Nester

	 
	Name: Chris Nester

	 
	Title: Treasurer

	
		
	BANK OF AMERICA, N.A., as Administrative Agent and a 2017 B-1 Incremental Term Lender

	 

	By

	 
	/s/ Maurice E. Washington

	 
	Name: Maurice E. Washington

	 
	Title: Vice President

	 

	By

	 
	 

	 
	Name:

	 
	Title:

[Signature Page to Fourth Incremental Term Loan Amendment (Sabre)] 
	
			
	AMERICAS 93190561
	 
	 

I. Election (Check Only One of Boxes A and B below):
	
	
	A.    □ CONSENT AND CASHLESS SETTLEMENT OPTION (EXISTING TERM LENDERS ONLY):   
By checking this box, the undersigned Existing Term Lender hereby (i) consents to the Fourth Incremental Term Facility Amendment to the Amended and Restated Credit Agreement, (ii) agrees to convert (on a cashless basis) 100% of the outstanding principal amount of its Existing Term B Loans for 2017 B-1 Incremental Term Loans in an equal principal amount, (iii) acknowledges and agrees that its 2017 B-1 Incremental Term Loan Conversion Amount may be less than the full principal amount of its Existing Term B Loans which it elects to convert hereunder and (iv) constitutes a 2017 B-1 Incremental Term Lender. 

	
	
	B.    □ ASSIGNMENT SETTLEMENT OPTION (EXISTING TERM LENDERS ONLY):   
 By checking this box, the undersigned Existing Term Lender hereby agrees to have an amount equal to 100% of the outstanding principal amount of its Existing Term B Loans repaid in full in cash in accordance with the terms of the Fourth Incremental Term Facility Amendment to the Amended and Restated Credit Agreement and to promptly purchase from Bank of America, N.A. by assignment 2017 B-1 Incremental Term Loans in an equal principal amount post-closing (or such lesser amount allocated to such Existing Term Lender by BoA Merrill Lynch).

 
II. Signature:

Name of Institution: ____________________________________________________

	
		
	By:
	 

	 
	Name: 

	 
	Title:

	

For any institution requiring a second signature line:

	By:
	 

	 
	Name: 

	 
	Title:

[CONSENTING LENDER SIGNATURE PAGES ON FILE WITH ADMINISTRATIVE AGENT]

[Signature Page to Fourth Incremental Term Loan Amendment (Sabre)] 
	
			
	AMERICAS 93190561

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00274-of-00352.parquet"}]]