Document:

First Financial Bank, National Association

		Borrowers:	Environmental Quality Management, Inc.

EQ Engineers, LLC

Vertterre Corporation

Loan Number: 820106477

 

AMENDED AND RESTATED SECURITY AGREEMENT

 

THIS AMENDED AND RESTATED
SECURITY AGREEMENT (this “Agreement”), dated as of February 27, 2013 (the “Effective Date”),
between FIRST FINANCIAL BANK, NATIONAL ASSOCIATION, a national banking association (“Bank”), and ENVIRONMENTAL
QUALITY MANAGEMENT, INC., an Ohio corporation (“EQMI”), EQ ENGINEERS, LLC, an Indiana limited
liability company (“EQE”), and VERTTERRE CORPORATION, a New Mexico corporation (“Vertterre”,
and together with EQMI and EQE, each a “Borrower” and, collectively (“Borrowers”), is as
follows:

 

A.           EQMI,
EQE and Bank are parties to that certain Loan Agreement dated as of September 28, 2012 (the “Existing Loan Agreement”).
In connection with the Existing Loan Agreement, EQMI, EQE and Bank entered into that certain Security Agreement dated as of September
28, 2012 (the “Existing Security Agreement”).

 

B.           Pursuant
to that certain letter (the “Letter”), dated as of December 27, 2012, among Bank, EQMI, EQE and EQM Technologies
& Energy, Inc., a Delaware corporation (“Parent”), Bank consented, subject to the satisfaction of certain
terms and conditions, to the following (collectively, the “Vertterre Transactions”): (i) a Distribution by EQMI
to Parent in order so that Parent could purchase 100% of the Capital Stock of Vertterre (the “Vertterre Acquisition”),
(ii) the issuance by Parent of the Vertterre Subordinated Note, (iii) the consummation of the Vertterre Acquisition and any related
transactions and any ancillary documents in accordance with the terms of the Vertterre Stock Purchase Agreement, and (iv) the transfer
of all Parent’s ownership interest in the Capital Stock of Vertterre to EQMI following the Vertterre Acquisition.

 

C.           The
effectiveness of Bank’s consent, as provided in the Letter, to the Vertterre Transactions was made conditional on,
among other things, (i) Vertterre becoming a borrower under the Existing Loan Agreement and (ii) Vertterre’s Subsidiaries
becoming parties to the Existing Loan Agreement in a capacity to be determined by Bank.

 

D. Now, in order to satisfy
the conditions set forth in the Letter, Bank and each of the Borrowers desire to amend the Existing Loan Agreement pursuant to
the First Amendment to Loan Agreement, dated as of even date herewith, among Borrowers and Bank (the “First Amendment”).

 

E.           As
a condition precedent to the First Amendment, Bank is requiring, among other things, that Borrowers amend and restate the Existing
Security Agreement in order so that Vertterre becomes a party thereunder.

 

		1.	DEFINITIONS.

 

1.1          Loan Agreement. Any capitalized
term used but not defined herein shall have the meaning ascribed thereto in the Existing Loan Agreement, as amended by the First
Amendment (as amended, the “Loan Agreement”).

 

1.2          Defined Terms. In addition
to the other terms defined in this Agreement, whenever the following capitalized terms (whether or not underscored) are used, they
shall be defined as follows:

 

“Code”
means the Uniform Commercial Code, as enacted in the State of Ohio, Section 1301.01 et seq. of the Ohio Revised Code, as
amended or superseded from time to time after the date of this Agreement.

 

“Collateral”
means all of each Borrower’s rights, titles and interests in and to all of each Borrower’s assets and property, tangible
and intangible, real and personal, including:

 

(i)          all
of each Borrower’s accounts, chattel paper, deposit accounts, documents, equipment, fixtures, instruments, inventory, investment
property, general intangibles, goods, and letter-of-credit rights, provided, however, that the Collateral shall not include
any equity interests of EQES, provided further, however, that Bank
specifically reserves its right to request that the equity interests of EQES be included as Collateral and in such event, Borrowers
agree to execute any and all documentation therefor deemed necessary or otherwise desirable by the Bank;

 

    	 

    	 

    

  

(ii)         all
of each Borrower’s rights, titles and interests in and to the commercial tort claims listed, or required to be listed, in
Exhibit 5.7 to this Agreement;

 

(iii)        without
limiting the description of the property or any rights or interests in the property described above in this definition of Collateral,
all of each Borrower’s rights, titles and interests in and to (a) all of each Borrower’s money, cash, and other funds;
(b) all attachments, accessions, parts and appurtenances to, all substitutions for, and all replacements of any and all of each
Borrower’s equipment, fixtures and other goods; (c) all of each Borrower’s agreements, as-extracted collateral, tangible
chattel paper, electronic chattel paper, health-care-insurance receivables, leases, lease contracts, lease agreements, payment
intangibles, proceeds of letters of credit, promissory notes, records, and software; and (d) all of each Borrower’s franchises,
customer lists, insurance refunds, insurance refund claims, tax refunds, tax refund claims, pension plan refunds, pension plan
reversions, patents, patent applications, service marks, service mark applications, trademarks, trademark applications, trade names,
trade secrets, goodwill, copyrights, copyright applications, and licenses;

 

(iv)        all
supporting obligations;

 

(v)         all
of the products and proceeds of all of the foregoing described property and interests in property, including cash proceeds and
noncash proceeds, and including proceeds of any insurance, whether in the form of original collateral or any of the property or
rights or interests in property described above in this definition of Collateral; and

 

(vi)        all
of the foregoing, whether now owned or existing or hereafter acquired or arising, or in which any Borrower now has or hereafter
acquires any rights, titles or interests.

 

1.3          Other Definitional Provisions;
Construction. Unless otherwise specified,

 

(i)          As
used in this Agreement, accounting terms relating to Borrowers not defined in this Agreement have the respective meanings given
to them in accordance with GAAP.

 

(ii)         The
definition of any document, instrument or agreement includes all schedules, attachments and exhibits thereto and all renewals,
extensions, supplements, restatements and amendments thereof. All Exhibits attached to this Agreement are incorporated into, made
and form an integral part of, this Agreement for all purposes.

 

(iii)        “Hereunder,”
“herein,” “hereto,” “this Agreement” and words of similar import refer to this entire document;
“including” is used by way of illustration and not by way of limitation, unless the context clearly indicates the contrary;
the singular includes the plural and conversely; and any action required to be taken by Borrowers is to be taken promptly, unless
the context clearly indicates the contrary.

 

(iv)        All
of the uncapitalized terms contained in this Agreement which are now or hereafter defined under the Code will, unless the context
indicates otherwise, have the meanings provided for now or hereafter in the Code.

 

		2.	GRANT OF SECURITY INTEREST; SET-OFF AND RELATED MATTERS.

 

2.1        Security Interest. As
security for the full, prompt and complete payment and performance by Borrowers (or any one or more of them) of the Obligations,
each Borrower hereby grants to, and creates in favor of, Bank a continuing security interest in, and Lien on, all of the Collateral.

 

2.2        Set-Off. All cash, moneys,
investment property and other properties of each Borrower and the proceeds thereof now or hereafter held or received by Bank from
or for the account of any Borrower, including any and all deposits (general or special), account balances and credits of any Borrower
with Bank or any Affiliate of Bank at any time existing, (i) are part of the Collateral, (ii) will be held as security for the
Obligations, and (iii) may be set-off and applied against any or all Obligations without any notice to Borrowers (such notice being
expressly waived by each Borrower) at any time following the occurrence and during the continuance of an Event of Default, and
Bank has the right at any time following the occurrence and during the continuance of an Event of Default to refuse to allow withdrawals
from any account of any Borrower without any notice to any Borrower (such notice being expressly waived by each Borrower). Each
Borrower authorizes Bank’s Affiliates to pay or to deliver to Bank any deposits or other sums credited by, or due from, Bank’s
Affiliates to any Borrower for application against any or all Obligations, at any time upon the occurrence, and during the continuance
of, any Event of Default, all without further notice to any Borrower (such notice being expressly waived by each Borrower). Nothing
in this Section 2.2 will impair or affect Bank’s rights under Sections 2.6 and 3.7 of the Loan Agreement
nor will Bank be required to resort to other security or sources of reimbursement for the Obligations before the exercise of any
rights by Bank under this Section 2.2. The rights given to Bank hereunder are cumulative with Bank’s other rights
and remedies, including other rights of setoff. Bank may give notice of the above grant of a security interest in, and assignment
of, such deposits and other sums to any Affiliate of Bank. Bank has authorization to, and may make any suitable arrangements with,
any Affiliate of Bank for effectuation thereof, and each Borrower hereby irrevocably appoints Bank as its attorney-in-fact to collect
any and all such deposits or other sums to the extent any such payment is not made to Bank by any Affiliate of Bank.

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		3.	PERFECTION OF BANK’S SECURITY INTEREST; DUTY
OF CARE.

 

3.1        Borrowers’ Required
Actions. Until the termination of this Agreement, each Borrower shall perform any and all steps and take all actions requested
by Bank from time to time to perfect, maintain, protect, and enforce Bank’s security interest in, and Lien on, the Collateral,
including (i) executing and delivering all appropriate documents and instruments as Bank may reasonably determine are necessary
or desirable to perfect, preserve, or enforce Bank’s interest in the Collateral, including financing statements, all in form
and substance satisfactory to Bank, (ii) delivering and indorsing to Bank any warehouse receipts or other documents of title covering
that portion of the Collateral which, with Bank’s consent, may be located in warehouses and in respect of which warehouse
receipts are issued, (iii) upon the occurrence and during the continuance of any Event of Default, transferring inventory to warehouses
approved by Bank, (iv) placing notations on Borrowers’ books of account to disclose Bank’s security interest and Lien
therein, and (v) taking such other steps and actions as deemed necessary or desirable by Bank to perfect and enforce Bank’s
security interest in, and Lien on, and other rights and interests in, the Collateral.

 

3.2        Financing
Statements; Notices. Each Borrower hereby irrevocably authorizes Bank at any time and from time to time to file in any filing
office in any jurisdiction any initial financing statements and amendments thereto that (a) indicate the Collateral (i) as all
assets of Borrowers (or any one or more of them), whether now owned or hereafter acquired or arising, and all proceeds and products
thereof or (ii) as being of an equal or lesser scope or with greater detail and (b) provide any other information required by Part
5 of Article 9 of the Uniform Commercial Code or such other jurisdiction for the sufficiency or filing office acceptance of any
financing statement or amendment, including whether any Borrower is an organization, the type of organization and any organizational
identification number issued to each Borrower. Each Borrower hereby irrevocably authorizes Bank at any time and from time to time
to correct or complete, or to cause to be corrected or completed, any financing statements, continuation statements or other such
documents as have been filed naming such Borrower as debtor and Bank as secured party. Each Borrower agrees to furnish any such
information to Bank promptly upon request. At Bank’s request, each Borrower will execute notices appropriate under any applicable
requirements of law that are necessary, or are reasonably requested by Bank, to evidence, perfect, or protect its security interest
in and other Liens on the Collateral in such form(s) as are satisfactory to Bank. Borrowers will pay the reasonable cost of filing
all financing statements and other notices in all public offices where filing is deemed by Bank to be necessary or desirable to
perfect, protect or enforce the security interest and Lien granted to Bank hereunder. A carbon, photographic, photostatic or other
reproduction of this Agreement or of a financing statement is sufficient as a financing statement. Bank is hereby authorized to
give notice to any creditor, landlord or any other Person as may be necessary or desirable under applicable laws to evidence, protect,
perfect, or enforce the security interest and Lien granted to Bank in the Collateral.

 

3.3        Bailees; Consignees; Warehousemen.
If any Collateral is in the possession or control of any warehouseman or any of any Borrower’s consignees, agents, processors,
customers or other bailees, Borrowers shall notify such warehousemen, consignee, agents, processors, customers or other bailees
of Bank’s security interest and Lien therein, and upon Bank’s request, Borrowers will use commercially reasonable efforts
to obtain a bailee letter agreement and financing statements acceptable to Bank from such warehousemen, consignees, agents, processors,
customers or other bailees, pursuant to which each such warehousemen, consignee, agent, processor, customer or other bailee acknowledges
in an authenticated record that such Person is holding the Collateral for Bank’s benefit, and such documentation from any
secured creditor or lessor of such Person as Bank may reasonably request in good faith.

 

3.4        Impositions; Protection of
Bank’s Interests. To protect, perfect, or enforce, from time to time, Bank’s rights or interests in the Collateral,
Bank may, in its discretion exercised in good faith (but without any obligation to do so), (i) discharge any Liens (other than
Permitted Liens so long as no Event of Default has occurred) and after giving notice to Borrowers (such notice not being required
following the occurrence and during the continuance of an Event of Default) at any time levied or placed on the Collateral, (ii)
pay any insurance to the extent Borrowers have failed to timely pay the same, (iii) maintain guards where any Collateral is located
if an Event of Default has occurred and is continuing, and (iv) obtain any record from any service bureau and pay such service
bureau the cost thereof. All costs and expenses incurred by Bank in exercising its discretion under this Section 3.4 will
be part of the Obligations, payable upon five (5) Business Days notice from the Bank and secured by the Loan Collateral.

 

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3.5         Bank’s Duty of Care.
Bank shall have no duty of care with respect to the Collateral except that Bank shall exercise reasonable care with respect to
the Collateral in Bank’s custody. Bank shall be deemed to have exercised reasonable care if (i) such property is accorded
treatment substantially equal to that which Bank accords its own property or (ii) Bank takes such action with respect to the Collateral
as Borrowers shall reasonably request in writing. Bank will not be deemed to have, and nothing in this Section 3.5 may be
construed to deem that Bank has, failed to exercise reasonable care in the custody or preservation of Collateral in its possession
merely because either (a) Bank failed to comply with any request of Borrowers or (b) Bank failed to take steps to preserve rights
against any Persons in such property. Each Borrower agrees that Bank has no obligation to take steps to preserve rights against
any prior parties.

 

3.6         Verification. At any
time and from time to time, Bank, in its own name or in the name of others, may periodically communicate with each Borrower’s
account debtors, customers and other obligors to verify with them, to Bank’s satisfaction, the existence, amount and terms
of any sums owed by such account debtors, customers or other obligors to any Borrower and the nature of any such account debtor’s,
customer’s or other obligor’s relationship with any Borrower.

 

3.7         Equipment. Each Borrower
will, on Bank’s request, deliver to Bank any and all evidences of ownership of the equipment, including any certificates
of title and applications for title pertaining to any Borrower’s equipment, so that Bank may cause its security interest
and Lien to be noted on such certificates of title.

 

3.8         Control Agreement. With
respect to any of the Collateral for which control of such Collateral is a method of perfection under the Uniform Commercial Code,
including all of each Borrower’s rights, titles and interests in deposit accounts, investment property, electronic chattel
paper and letter-of-credit rights, and without limiting the obligations of each Borrower under the provisions of Sections
3.9, 3.10, and 3.11, each Borrower will, on Bank’s request, cause to be executed by each Person that
Bank determines is appropriate, a control agreement in a form acceptable to Bank.

 

3.9         Promissory
Notes and Tangible Chattel Paper. If any Borrower shall at any time hold or acquire any promissory notes or tangible chattel
paper, with an aggregate value in excess of $50,000, such Borrower shall forthwith endorse, assign and deliver the same to Bank,
accompanied by such instruments of transfer or assignment duly executed in blank as Bank may from time to time specify.

 

3.10.      Electronic
Chattel Paper and Transferable Records. If any Borrower at any time holds or acquires an interest in any electronic chattel
paper or any “transferable record,” as that term is defined in Section 201 of the Federal Electronic Signatures in
Global and National Commerce Act, or in §16 of the Uniform Electronic Transactions Act as in effect in any relevant jurisdiction,
with an aggregate value in excess of $50,000, Borrowers shall promptly notify Bank thereof and, at the request and option of Bank,
shall take such action as Bank may reasonably request to vest in Bank control, under §9-105 of the Uniform Commercial Code,
of such electronic chattel paper or control under Section 201 of the Federal Electronic Signatures in Global and National Commerce
Act or, as the case may be, §16 of the Uniform Electronic Transactions Act, as so in effect in such jurisdiction, of such
transferable record.

 

3.11.      Letter-of-Credit
Rights. If any Borrower is at any time a beneficiary under a letter of credit now or hereafter, with an aggregate value in
excess of $50,000, Borrowers shall promptly notify Bank thereof and, at the request and option of Bank, Borrowers shall, pursuant
to an agreement in form and substance satisfactory to Bank, either, at the option of Bank, (i) arrange for the issuer and any confirmer
or other nominated person of such letter of credit to consent to an assignment to Bank of the proceeds of the letter of credit
or (ii) arrange for Bank to become the beneficiary of the letter of credit. Nothing in this Section 3.11 may be construed
to alter in any way the criteria for Eligible Receivables provided in Section 1.1 of the Loan Agreement.

 

3.12.      Commercial
Tort Claims. If any Borrower shall at any time hold or acquire a commercial tort claim, with an aggregate value in excess of
$50,000, Borrowers shall immediately notify Bank in a signed writing of the particulars thereof and grant to Bank 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 Bank.

 

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		4.	POWER OF ATTORNEY.

 

4.1      Grant of Power. Each
Borrower does hereby make, constitute and appoint Bank (or any officer or agent of Bank) as such Borrower’s true and lawful
attorney-in-fact, with full power of substitution, in the name of such Borrower or in the name of Bank or otherwise, for the use
and benefit of Bank, but at the cost and expense of Borrowers, (i) after an Event of Default has occurred and is continuing, to
indorse the name of any Borrower on any instruments, notes, checks, drafts, money orders, or other media of payment (including
payments payable under any policy of insurance on the Collateral) or Collateral that may come into the possession of Bank or any
Affiliate of Bank in full or part payment of any of the Obligations; (ii) upon the occurrence and during the continuance of any
Event of Default, to sign and indorse the name of any Borrower on any invoice, freight or express bill, bill of lading, storage
or warehouse receipts, drafts against debtors, assignments, verifications and notices in connection with any Collateral, and any
instrument or document relating thereto or to any of any Borrower’s rights therein; (iii) to file financing statements pursuant
to the Uniform Commercial Code and other notices appropriate under applicable law as Bank deems necessary to perfect, preserve,
and protect Bank’s rights and interests under this Agreement; (iv) after an Event of Default has occurred and is continuing,
to obtain the insurance referred to in Section 10.14 of the Loan Agreement and indorse any drafts and cancel any insurance
so obtained by Bank; (v) after an Event of Default has occurred and is continuing, to give written notice to the United States
Post Office to effect change(s) of address so that all mail addressed to any Borrower may be delivered directly to Bank; and (vi)
to do any and all things necessary or desirable to perfect Bank’s security interest in, and Lien on, and other rights and
interests in, the Collateral, to preserve and protect the Collateral and to otherwise carry out this Agreement.

 

4.2      Duration; Ratification of
Acts. This power of attorney, being coupled with an interest, will be irrevocable for the term of this Agreement and all transactions
under this Agreement and thereafter so long as any of the Obligations remain in existence. Each Borrower ratifies and approves
all acts of such attorney, and neither Bank nor its attorney will be liable for any acts or omissions or for any error of judgment
or mistake of fact or law. Each Borrower will execute and deliver promptly to Bank all instruments necessary or desirable, as determined
in Bank’s discretion, to further Bank’s exercise of the rights and powers granted it in this Section 4.

 

5.          WARRANTIES
AND REPRESENTATIONS. To induce Bank to make the Loans and other extensions of credit pursuant to the Loan Documents, each Borrower
represents to Bank that the following statements are, and will continue throughout the term of this Agreement to be, true:

 

5.1      Jurisdiction of Organization;
Places of Business, etc. Each Borrower’s (i) jurisdiction of organization is the jurisdiction identified on Exhibit
5.1, (ii) exact legal name is as set forth in the first paragraph of this Agreement (as may be updated from time to time as
provided in Section 6.2), (iii) chief executive office and principal place of business are set forth on Exhibit 5.1
(as may be updated from time to time as provided in Section 6.2), (iv) offices or locations where each Borrower keeps the
Collateral (except for inventory in transit) or conducts any of its business are listed on Exhibit 5.1 (as may be updated
from time to time as provided in Section 6.2), (v) registered agent in the Commonwealth of Kentucky, if a Borrower has an
office or place of business in the Commonwealth of Kentucky, has an address as set forth on Exhibit 5.1 (as may be updated
from time to time as provided in Section 6.2), (vi) federal tax identification number is identified on Exhibit 5.1,
and (vii) organizational identification number in its jurisdiction of organization is identified on Exhibit 5.1.

 

5.2      Prior Locations Of Collateral.
Except for inventory in transit, none of the inventory or equipment constituting part of the Collateral has been at, or has been
removed from, any location during the five year period preceding the date of this Agreement other than those locations set forth
on Exhibit 5.1.

 

5.3      Names. All trade names,
assumed names, fictitious names and other names used by each Borrower during the five year period preceding the date of this Agreement
are set forth on Exhibit 5.3, and no Borrower has, during the preceding 5 year period, except as may be set forth on Exhibit
5.3, acquired any of its assets in any bulk transfer.

 

5.4      Investment Property.
Exhibit 5.4 lists all of each Borrower’s rights, titles or interests in, or with respect to, any investment property.

 

5.5      Letter-of-Credit Rights.
Exhibit 5.5 lists all of each Borrower’s rights, titles or interests in, or with respect to, any letters of credit.

 

5.6      Electronic Chattel Paper.
Exhibit 5.6 lists all of each Borrower’s rights, titles or interests in, or with respect to, any electronic chattel
paper.

 

5.7      Commercial Tort Claims.
Exhibit 5.7 lists all of each Borrower’s rights, titles or interests in, or with respect to, any commercial tort claims.

 

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5.8      Instruments. Exhibit
5.8 lists all of each Borrower’s rights, titles or interests in, or with respect to, any instruments, including promissory
notes.

 

5.9      State of Title. Borrowers
(or any one or more of them) have good and indefeasible title to, and ownership of, the Collateral, free and clear of all Liens
except to the extent, if any, of the Permitted Liens.

 

5.10      Priority. Bank has a
first priority security interest in, and Lien on, the Collateral except to the extent, if any, of the Permitted Liens.

 

 6.             COLLATERAL COVENANTS. Until the Obligations are fully paid, performed and satisfied and this Agreement is terminated, each Borrower will:

 

6.1      Claims Against Collateral.
Maintain and cause the Collateral, as the same is constituted from time to time, to be free and clear of all Liens, except to the
extent, if any, of the Permitted Liens, and Borrowers will defend or cause to be defended the Collateral against all of the claims
and demands of all Persons whomsoever (except to the extent, if any, of the Permitted Liens).

 

6.2      Notice of Change in Place
of Business; Names, etc. (i) Give Bank, and Bank’s counsel, Vorys, Sater, Seymour and Pease LLP, 301 East Fourth Street,
Suite 3500, Great American Tower, Cincinnati, Ohio 45202, Attention: Hani R. Kallas, Esq., at least 30 Business Days advance notice
in writing of (a) any change in any Borrower’s (1) chief executive office, principal place of business, or other places of
business, or the opening of any new places of business, (2) registered agent’s address in the Commonwealth of Kentucky (with
respect to EQMI), (3) exact legal name as set forth in the first paragraph of this Agreement, or (4) names from those set forth
on Exhibit 5.3, or (b) the adoption by any Borrower of trade names, assumed names or fictitious names and (ii) not, without
the prior written consent of Bank, change any Borrower’s jurisdiction of organization.

 

6.3      Notice of Governmental or
Foreign Accounts. Promptly notify Bank in writing of any contract with respect to which the account debtor is (i) the United
States or any state, city, county or other governmental authority or any department, agency or instrumentality of any of them,
or any foreign government or instrumentality thereof or (ii) a business which is located in a foreign country.

 

6.4      Notice of Adverse Information.
Immediately notify Bank in writing of any information which Borrowers have or may receive with respect to the Collateral which
may with reasonable certainty materially and adversely affect the value thereof or the rights of Bank with respect thereto.

 

6.5      Equipment. Maintain the
equipment in good operating condition and repair, ordinary wear and tear excepted, make all necessary replacements thereof so that
the value and operating efficiency thereof shall at all times be maintained and preserved, and promptly inform Bank of any additions
to or, subject to the terms of the Loan Agreement, deletions from the equipment. Borrowers will not permit any of the equipment
to become a fixture to real property not mortgaged to Bank or an accession to other personal property not constituting part of
the Collateral.

 

6.6      Inventory. Maintain the
inventory in good and salable condition, exclusive of obsolete or damaged inventory for which reserves or write-downs may be made
on Borrowers’ books in the ordinary course of business. Borrowers will handle, maintain and store the inventory in a safe
and careful manner in accordance with all applicable laws, rules, regulations, ordinances and governmental orders.

 

6.7      Insurance. Insure the
Collateral in accordance with the terms of the Loan Agreement.

 

6.8      Removal of Collateral.
Not (i) remove any of the Collateral (except for inventory in transit) from the locations set forth in Exhibit 5.1 of this
Agreement or keep any of the Collateral (except for inventory in transit) at any other office or location without giving Bank and
Bank’s counsel, as set forth in Section 6.2, at least 30 Business Days prior notice of such action and complying with
the other terms of this Agreement; provided that such location is within the continental United States or (ii) locate any Inventory
in any warehouse which has or will issue a negotiable warehouse receipt for such Inventory without Bank’s prior consent.

 

6.9      No Liens. Not create
or permit to be created or to exist any Lien on any of the Collateral except to the extent, if any, of the Permitted Liens.

 

7.            TERM.
Subject to Section 11.6 below, this Agreement will terminate on Payment in Full of the Obligations.

 

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		8.	BANK’S RIGHTS AND REMEDIES.

 

8.1          Remedies. (i) On the
occurrence of an Event of Default, Bank may immediately, at any time, while such Event of Default is continuing, take any one or
more of the following actions, without notice, demand or legal process of any kind (except as may be required by law), all of which
each Borrower waives to the fullest extent permitted by law:

 

(a)         proceed to enforce payment of
the Obligations and to exercise all of the rights and remedies afforded to Bank by the Code, the Uniform Commercial Code as in
effect in any jurisdiction, under the terms of the Loan Documents and by law and in equity provided, including those set forth
below in this Section 8.1;

 

(b)         take possession of the Collateral
and maintain such possession on any Borrower’s premises at no cost to Bank, or remove the Collateral, or any part thereof,
to such other place(s) as Bank may desire;

 

(c)         enter on any premises on which
the Collateral, or any part or records thereof, may be situated and remove the same therefrom, for which action Borrowers will
not assert against Bank any claim for trespass, breach of the peace or similar claim, and Borrowers will not hinder Bank’s
efforts to effect such removal;

 

(d)         require Borrowers, at their
cost, to assemble the Collateral and make it available at a place reasonably designated by Bank;

 

(e)         collect, compromise, take, sell
or otherwise deal with the Collateral and proceeds thereof in its own name or in the name of any Borrower, including (1) bringing
suit on any one or more of the accounts, chattel paper, instruments, documents, leases or other agreements (including Government
Contracts) (collectively, “Contracts”) in the name of any Borrower or Bank, and exercise all such other rights
respecting the Contracts, in the name of any Borrower or Bank, including the right to accelerate or extend the time of payment,
settle, release in whole or in part any amounts owing on any Contract and issue credits in the name of any Borrower or Bank, and
including proceeding against any collateral or security provided in respect of any Contract and (2) bringing suit on any one or
more of the general intangibles, in the name of any Borrower or Bank, and exercise all such other rights respecting the general
intangibles, including the right to accelerate or extend the time of payment, settle, release in whole or in part any amounts owing
on any general intangible and issue credits in the name of any Borrower or Bank, and including proceeding against any collateral
or security provided in respect of any general intangible;

 

(f)         sell part or all of the Collateral
at public or private sale(s), for cash, upon credit or otherwise, at such prices and upon such terms as Bank deems advisable, at
Bank’s discretion exercised in good faith, and Bank may, if Bank deems it reasonable, postpone or adjourn any sale of the
Collateral from time to time by an announcement at the time and place of sale or by announcement at the time and place of such
postponed or adjourned sale, without being required to give a new notice of sale, and without being obligated to make any sale
of the Collateral regardless of notice of sale having been given;

 

(g)         to the extent Bank has not so
acted or is currently so acting pursuant to the other terms of this Agreement, notify any or all of each Borrower’s customers,
account debtors and any other Persons (1) obligated on the Collateral to make payment or otherwise render performance to or for
the benefit of Bank and (2) that, without limiting the generality of clause (1), the Contracts and general intangibles have been
assigned to Bank and that payments should be made directly to Bank;

 

(h)         require Borrowers, using such
form as Bank may approve, to notify each Borrower’s customers, account debtors and any other Persons, and to indicate on
all of any Borrower’s correspondence to such customers, account debtors and other Persons, that the Contracts and general
intangibles must be paid to Bank directly;

 

(i)           sign
any indorsements, assignments or other writings of conveyance or transfer in connection with any disposition of the Collateral;

 

(j)         sell, assign, transfer or otherwise
dispose of all or any part of the Collateral in any manner permitted by law and do any other thing and exercise any other right
or remedy which Bank may, with or without judicial process, do or exercise under applicable law, and in any such sale Bank may
sell, assign, transfer or otherwise dispose of all or any part of the Collateral without giving any warranties and Bank may specifically
disclaim any warranties of title and the like;

 

    	- 7 -

    	 

    

 

(k)         apply for and have a receiver
appointed under state or federal law by a court of competent jurisdiction in any action taken by Bank to enforce its rights and
remedies under this Agreement and, as applicable, the other Loan Documents in order to manage, protect, preserve, and sell and
otherwise dispose of all or any portion of the Collateral and continue the operation of the business of each Borrower, and to collect
all revenues and profits thereof and apply the same to the payment of all expenses and other charges of such receivership, including
the compensation of the receiver, and to the payment of the Obligations until a sale or other disposition of such Collateral is
finally made and consummated;

 

(l)         enforce the obligations of an
account debtor or other Person obligated on collateral and exercise the rights of the debtor with respect to the obligation of
the account debtor or other Person obligated on collateral to make payment or otherwise render performance to any Borrower, and
with respect to any property that secures the obligations of the account debtor or other Person obligated on collateral, in any
case directly or through collection agencies or other collection specialists; and

 

(m)         without limiting the provisions
of Section 2.2, apply (or instruct another Person to apply) to the Obligations the balance of any deposit account that is
part of the Collateral.

 

(ii)         Each
Borrower acknowledges that portions of the Collateral could be difficult to preserve and dispose of and be further subject to complex
maintenance and management. Accordingly, Bank, in exercising its rights under this Section 8.1, shall have the widest possible
latitude to preserve and protect the Collateral and Bank’s security interest in and Lien thereon. Moreover, each Borrower
acknowledges and agrees that Bank shall have no obligation to, and each Borrower hereby waives to the fullest extent permitted
by law any right that it may have to require Bank to, (a) clean up or otherwise prepare any of the Collateral for sale, (b) pursue
any Person to collect any of the Obligations or (c) exercise collection remedies against any Persons obligated on the Collateral.
Bank’s compliance with applicable local, state or federal law requirements, in addition to those imposed by the UCC, in connection
with a disposition of any or all of the Collateral will not be considered to adversely affect the commercial reasonableness of
any disposition of any or all of the Collateral under the UCC.

 

8.2       Notice of Disposition; Allocations.
If any notice is required by law to effectuate any sale or other disposition of the Collateral, (i) Bank will give Borrowers written
notice of the time and place of any public sale or of the time after which any private sale or other intended disposition thereof
will be made, and at any such public or private sale, Bank may purchase all or any of the Collateral; and (ii) Bank and Borrowers
agree that such notice will not be unreasonable as to time if given in compliance with this Agreement ten days prior to any sale
or other disposition. The proceeds of the sale will be applied first to all costs and expenses of such sale including Attorneys’
Fees and other reasonable costs and expenses, and second to the payment of all Obligations in the manner and order determined by
Bank in its discretion. Borrowers shall remain liable to Bank for any deficiency. Unless otherwise directed by law, Bank will return
any excess to Borrowers.

 

8.3       Payment of Expenses.
Borrowers shall pay to Bank, on its demand, all costs and expenses, including court costs, Attorneys’ Fees and costs of sale,
incurred by Bank in exercising any of its rights or remedies hereunder, all of which constitute part of the Obligations and are
secured by the Loan Collateral.

 

9.          INDEMNIFICATION.
In consideration of the execution and delivery of the Loan Agreement and the making of any Loan to Borrowers, each Borrower will
indemnify and hold Bank and Bank’s officers, directors, Affiliates, and agents (for the purposes of this Section 9
each is an “Indemnified Party”) harmless from and against any and all claims, losses, obligations and liabilities
arising out of or resulting from any or all of (i) this Agreement and (ii) the transactions contemplated by this Agreement (including
enforcement of this Agreement), except for claims, losses or liabilities to the extent resulting from an Indemnified Party’s
gross negligence or willful misconduct. The indemnification provided for in this Section 9 is in addition to, and not in
limitation of, any other indemnification or insurance provided by Borrowers to Bank.

 

10.         NOTICE.
Any notice, certificate, request, notification and other communication required, permitted or contemplated hereunder must be in
writing and given in accordance with the Loan Agreement.

 

11.         GENERAL.

 

11.1         Severability.
If any term of this Agreement is found invalid under Ohio law or other laws of mandatory application by a court of competent jurisdiction,
the invalid term will be considered excluded from this Agreement and will not invalidate the remaining terms of this Agreement.

 

    	- 8 -

    	 

    

 

11.2         GOVERNING
LAW. THIS AGREEMENT HAS BEEN DELIVERED AND ACCEPTED AT AND SHALL BE DEEMED TO HAVE BEEN MADE AT CINCINNATI, OHIO.
THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OHIO (WITHOUT REGARD
TO OHIO CONFLICTS OF LAW PRINCIPLES).

 

11.3         WAIVER
OF JURISDICTION. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR BANK TO ENTER INTO THIS AGREEMENT AND EXTEND CREDIT TO BORROWERS,
EACH BORROWER AND BANK AGREE THAT ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS AGREEMENT, ITS VALIDITY OR
PERFORMANCE AND WITHOUT LIMITATION ON THE ABILITY OF BANK, ITS SUCCESSORS AND ASSIGNS, TO INITIATE AND PROSECUTE IN ANY APPLICABLE
JURISDICTION ACTIONS RELATED TO THE REPAYMENT AND COLLECTION OF THE OBLIGATIONS AND THE EXERCISE OF ALL OF BANK’S RIGHTS
AGAINST BORROWERS WITH RESPECT THERETO AND ANY SECURITY OR PROPERTY OF BORROWERS, INCLUDING DISPOSITIONS OF THE COLLATERAL, SHALL,
AT BANK’S SOLE OPTION, BE INITIATED AND PROSECUTED AS TO ALL PARTIES AND THEIR SUCCESSORS AND ASSIGNS AT CINCINNATI, OHIO.
BANK AND EACH BORROWER EACH CONSENT TO AND SUBMIT TO THE EXERCISE OF JURISDICTION OVER THEIR RESPECTIVE PERSONS BY ANY COURT SITUATED
AT CINCINNATI, OHIO HAVING JURISDICTION OVER THE SUBJECT MATTER, AND EACH CONSENTS THAT ALL SERVICE OF PROCESS BE MADE BY CERTIFIED
MAIL DIRECTED TO BORROWERS AND BANK AT THEIR RESPECTIVE ADDRESSES SET FORTH IN THE LOAN AGREEMENT OR AS OTHERWISE PROVIDED UNDER
THE LAWS OF THE STATE OF OHIO. EACH BORROWER WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE
OF ANY ACTION INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY
THE COURT.

 

11.4         Survival
and Continuation of Representations and Warranties. All of each Borrower’s representations and warranties contained in
this Agreement shall (i) survive the execution, delivery and acceptance hereof by the parties hereto and the closing of the transactions
described herein or related hereto and (ii) remain true until the Obligations are fully performed, paid and satisfied and are made
by each Borrower with the same effect as though the representations and warranties had been made again on, and as of, each day
of the term of this Agreement, other than those changes as may not be prohibited hereby, do not constitute Events of Default, or
have been consented to by Bank in writing.

 

11.5         Bank’s
Additional Rights Regarding Collateral. All of the Obligations shall constitute one obligation secured by all of the Collateral.
In addition to Bank’s other rights and remedies under the Loan Documents, Bank may, in its discretion exercised in good faith,
following the occurrence and during the continuance of any Event of Default: (i) exchange, enforce, waive or release any of the
Collateral or portion thereof, (ii) apply the proceeds of the Collateral against the Obligations and direct the order or manner
of the liquidation thereof (including any sale or other disposition), as Bank may, from time to time, in each instance determine,
and (iii) settle, compromise, collect or otherwise liquidate any such security in any manner without affecting or impairing its
right to take any other further action with respect to any security or any part thereof.

 

11.6         Application
of Payments; Revival of Obligations. Bank shall have the continuing right to apply or reverse and reapply any payments to any
portion of the Obligations. To the extent Borrowers make a payment or payments to Bank or Bank receives any payment or proceeds
of the Collateral or any other security for Borrowers’ benefit, which payment(s) or proceeds or any part thereof are subsequently
voided, invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any
other party under any bankruptcy act, state or federal law, common law or equitable cause, then, to the extent of such payment(s)
or proceeds received, the Obligations or part thereof intended to be satisfied shall be revived and shall continue in full force
and effect, as if such payment(s) or proceeds had not been received by Bank.

 

11.7         Additional
Waivers by Borrowers. Each Borrower waives presentment and protest of any instrument and notice thereof, and, except as expressly
provided in the Loan Documents, demand, notice of default and all other notices to which any Borrower might otherwise be entitled.
No Borrower shall assert a claim against Bank on any theory of liability for consequential, special, indirect or punitive damages.

 

11.8         Equitable
Relief. Each Borrower recognizes that, in the event any Borrower fails to perform, observe or discharge any of its obligations
or liabilities under this Agreement, any remedy of law may prove to be inadequate relief to Bank; therefore, each Borrower agrees
that Bank, if Bank so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity
of proving actual damages.

 

    	- 9 -

    	 

    

 

11.9         Entire
Agreement; Counterparts; Fax Signatures. This Agreement and the other Loan Documents set forth the entire agreement of the
parties with respect to subject matter of this Agreement and supersede all previous understandings, written or oral, in respect
thereof. Any request from time to time by Borrowers for Bank’s consent under any provision in the Loan Documents must be
in writing, and any consent to be provided by Bank under the Loan Documents from time to time must be in writing in order to be
binding on Bank; however, Bank will have no obligation to provide any consent requested by Borrowers, and Bank may, for
any reason in its discretion exercised in good faith, elect to withhold the requested consent. Two or more duplicate originals
of this Agreement may be signed by the parties, each of which shall be an original but all of which together shall constitute one
and the same instrument. Any documents delivered by, or on behalf of, any Borrower by facsimile transmission or other electronic
delivery of an image file reflecting the execution thereof: (i) may be relied on by Bank as if the document were a manually signed
original and (ii) will be binding on Borrowers for all purposes of the Loan Documents.

 

11.10         Headings. Section headings
in this Agreement are included for convenience of reference only and shall not relate to the interpretation or construction of
this Agreement.

 

11.11         Cumulative Remedies.
The remedies provided in this Agreement and the other Loan Documents are cumulative and not exclusive of any remedies provided
by law. Exercise of one or more remedy(ies) by Bank does not require that all or any other remedy(ies) be exercised and does not
preclude later exercise of the same remedy.

 

11.12         Waivers and Amendments
in Writing. Failure by Bank to exercise any right, remedy or option under this Agreement or in any other Loan Document or delay
by Bank in exercising the same shall not operate as a waiver by Bank of its right to exercise any such right, remedy or option.
No waiver by Bank shall be effective unless it is in writing and then only to the extent specifically stated. This Agreement cannot
be amended, modified, changed or terminated orally.

 

11.13         Recourse to Directors or
Officers. The obligations of Bank under this Agreement are solely the corporate obligations of Bank. No recourse shall be had
for any obligation or claim arising out of or based upon this Agreement against any stockholder, employee, officer, or director
of Bank.

 

11.14         Assignment. Bank shall
have the right to assign this Agreement and the other Loan Documents. Borrowers may not assign, transfer or otherwise dispose of
any of their rights or obligations hereunder, by operation of law or otherwise, and any such assignment, transfer or other disposition
without Bank’s written consent shall be void. All of the rights, privileges, remedies and options given to Bank under the
Loan Documents shall inure to the benefit of Bank’s successors and assigns, and all the terms, conditions, covenants, provisions
and warranties herein shall inure to the benefit of and bind the permitted successors and assigns of each Borrower and Bank, respectively.

 

11.15         Conflict. If there
is any conflict, ambiguity, or inconsistency, in Bank’s judgment, between the terms of this Agreement and any of the other
Loan Documents, then the applicable terms and provisions, in Bank’s judgment, providing Bank with greater rights, remedies,
powers, privileges, or benefits will control.

 

11.17         WAIVER OF JURY TRIAL.
AS A SPECIFICALLY BARGAINED INDUCEMENT FOR BANK TO ENTER INTO THIS AGREEMENT AND EXTEND CREDIT TO BORROWERS, EACH OF BANK AND EACH
BORROWER WAIVES TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS AGREEMENT
OR THE CONDUCT OF THE RELATIONSHIP BETWEEN BANK AND BORROWERS.

 

11.18         Joint and Several Obligations.
All of the obligations of Borrowers hereunder are joint, several and primary.

 

11.19         Amendment
and Restatement. This Agreement constitutes an amendment and restatement in full of the Existing Security Agreement, and is
in no way intended, nor may it be construed, to impair or extinguish the creation, attachment, perfection or priority of the existing
security interest in, and other Liens on, the Collateral (or any part thereof) granted to, or held by, Bank under the Existing
Security Agreement, which existing security interests and other Liens (i) each Borrower acknowledges, confirms and reaffirms to
Bank and (ii) continue in existence under the terms of this Agreement. References
in any of the Loan Documents to the Existing Security Agreement shall, after the date of this Agreement, be deemed to be references
to this Agreement. 

 

[Signature Page Follows]

 

    	- 10 -

    	 

    

 

IN WITNESS WHEREOF,
this Agreement has been duly executed by each Borrower as of the Effective Date.

 

	 	ENVIRONMENTAL QUALITY MANAGEMENT, INC. 
	 	 	 
	 	By:	/s/ Robert R. Galvin
	 	 	Robert R. Galvin, Chief Financial Officer
	 	 	 
	 	EQ ENGINEERS, LLC 
	 	 	 
	 	By:	/s/ Jack S. Greber
	 	 	Jack S. Greber, Member
	 	 	 
	 	VERTTERRE CORPORATION 
	 	 	 
	 	By: 	/s/ James E. Wendle
	 	 	James E. Wendle, President 

 

Accepted at Cincinnati, Ohio

as of Effective Date.

 

FIRST FINANCIAL BANK, NATIONAL ASSOCIATION

 

	By:	/s/ Thomas J. Fischer	 
	 	Thomas J. Fischer, Vice President	 

   

SIGNATURE PAGE TO AMENDED AND RESTATED SECURITY AGREEMENT

  

    	- 11 -

    	 

    

EXHIBIT 5.1

 

 

Jurisdiction of Organization; Organizational
Identification Number; Tax ID number

 

EQMI is organized under the laws of Ohio; 781363; 31-1307062

EQE is organized under the laws of Indiana; 2002010700645; 03-0428413

Vertterre is organized under the laws of New Mexico; 2427136;
68-0590752

 

Borrowers’ Chief Executive Office and Principal Place
of Business

 

1800 Carillon Blvd., Cincinnati, Ohio 45240

 

Borrowers’ Offices or Locations Where any Collateral
is Located

 

	1)	1800 Carillon Blvd., Cincinnati, Ohio
	 	 
	2)	3325 Chapel Hill Boulevard, Suite 250, Durham, North Carolina
	 	 
	3)	6825 SW 216th Street, Lynwood, Washington
	 	 
	4)	64090 NWY 1090, Pearl River, Louisiana
	 	 
	5)	2135 Schapelle Lane, Cincinnati, Ohio
	 	 
	6)	12721 Wolf Road, Geneseo, Illinois 
	 	 
	7)	3460 Business Drive, Sacramento, California
	 	 
	8)	3959 Electric Road, Suite 175, Roanoke, Virginia
	 	 
	9)	1280 Arrowhead Court, Crown Point, Indiana
	 	 
	10)	3400 179th Street, Suite 2, Hammond, Indiana
	 	 
	11)	3400 179th Street, Suite 1, Hammond, Indiana
	 	 
	12)	320 Gold Avenue, SW, Suite 500, Albuquerque, New Mexico
	 	 
	13)	816 West Broadway, Bloomfield, New Mexico
	 	 
	14)	14115 Davis Estate Road, Needville, Texas

 

The Borrowers work in various locations in the ordinary course
of business and may transport equipment and inventory from one location to another.

 

Borrowers’ Registered Agent in Commonwealth of Kentucky,
if applicable

 

Borrowers’ use National Registered Agent, Inc. for its
registration needs in Kentucky.

 

    	 

    	 	

    
EXHIBIT 5.3

 

 

Intellectual Property

 

Trade Names, Assumed Names and Fictitious Names

 

A.           Currently
in Use

 

EQ (Environmental Quality Management)

EQE (Environmental Quality Engineers)

EQM Technologies & Energy

Beacon Energy Texas

Beacon Energy Corp.

Agrifuel Terra Farms, LLC

Agrifuel BBD Holding Co., Inc.

Agrifuel United Biofuels, Co., Inc.

Vertterre (Vertterre Corporation)

Landfill Gas Production L.L.C.

Grand Prairie Landfill Gas Production, Limited Liability Company

 

B.           Used
during last five years but not Currently in Use

 

EQES (EQ – Slovakia)

Beacon Energy Holdings, Inc.

Source Technologies, LLC

 

From time to time Borrowers conduct their business through joint
ventures.

 

Assets Acquired in Bulk Transfer

 

None.

 

    	 

    	 	

    
EXHIBIT 5.4

 

 

Investment Property

 

None.

 

 

    	 

    	 	

    
EXHIBIT 5.5

 

 

Letter-of-Credit Rights

 

Borrowers are parties to a letter of credit with First Financial
Bank in the amount of $1.5 million.

 

 

 

 

    	 

    	 	

    
  EXHIBIT 5.6

 

 

Electronic Chattel Paper

 

None.

 

 

 

    	 

    	 	

    
EXHIBIT 5.7

 

 

Commercial Tort Claims

 

None.

 

 

    	 

    	 	

    
EXHIBIT 5.8

 

 

Instruments

 

The Borrowers have certain interests in
the following instruments:

 

		·	Additional Beacon Noteholder Subordinated Notes (including Additional Greber Convertible Subordinated
Note)

 

		·	December 2011 Beacon Noteholder Subordinated Notes

 

		·	Vertterre Subordinated Note

 

		·	Certain Capital LeasesFirst Financial Bank, National Association

		Borrowers:	Environmental Quality Management, Inc.

EQ Engineers, LLC

Vertterre Corporation

Loan Number: 820106477

 

AMENDED AND RESTATED GUARANTY

 

THIS AMENDED AND RESTATED
GUARANTY (this “Guaranty”), dated as of February 27, 2013 (the “Effective Date”), made by
EQM TECHNOLOGIES & ENERGY, INC., a Delaware corporation (“Guarantor”), to, and for the benefit of,
FIRST FINANCIAL BANK, NATIONAL ASSOCIATION, a national banking association, for itself and as agent for each of its affiliates
(collectively, “Bank”). This
Guaranty amends and restates in its entirety that certain Guaranty made by Guarantor in favor of Bank dated as of September 28,
2012 (the “Existing Guaranty”). 

 

A.           Environmental
Quality Management, Inc., an Ohio corporation (“EQMI”), EQ Engineers, LLC, an Indiana limited liability company
(“EQE”), and Bank are parties to that certain Loan Agreement dated as of September 28, 2012 (the “Existing
Loan Agreement”). In connection with the Existing Loan Agreement, Guarantor entered into the Existing Guaranty of the
benefit of Bank.

 

B.           Pursuant
to that certain letter (the “Letter”), dated as of December 27, 2012, among Bank, EQMI, EQE and Guarantor, Bank
consented, subject to the satisfaction of certain terms and conditions, to the following (collectively, the “Vertterre
Transactions”): (i) a Distribution by EQMI to Guarantor in order so that Guarantor could purchase 100% of the Capital
Stock of Vertterre Corporation, a New Mexico Corporation (“Vertterre”) (the “Vertterre Acquisition”),
(ii) the issuance by Guarantor of the Vertterre Subordinated Note, (iii) the consummation of the Vertterre Acquisition and any
related transactions and any ancillary documents in accordance with the terms of the Vertterre Stock Purchase Agreement, and (iv)
the transfer of all Guarantor’s ownership interest in the Capital Stock of Vertterre to EQMI following the Vertterre Acquisition.

 

C.           The
effectiveness of Bank’s consent, as provided in the Letter, to the Vertterre Transactions was made conditional on,
among other things, (i) Vertterre becoming a borrower under the Existing Loan Agreement and (ii) Vertterre’s Subsidiaries
becoming parties to the Existing Loan Agreement in a capacity to be determined by Bank.

 

D. In order to satisfy the
conditions set forth in the Letter, Bank and each of the Borrowers (as defined below) desire to amend the Existing Loan Agreement
pursuant to the First Amendment to Loan Agreement, dated as of even date herewith, among Borrowers and Bank (the “First
Amendment”).

 

E.           As
a condition precedent to the First Amendment, Bank is requiring, among other things, that Guarantor amend and restate the Existing
Guaranty to provide for, among other things, the addition of Vertterre as an additional borrower under the Existing Loan Agreement.

 

	1.	 GUARANTY.

 

1.1           Guaranty.
For value received and in consideration of any loan, advance or financial accommodation of any kind whatsoever heretofore, now
or hereafter made, given or granted to one or more of ENVIRONMENTAL QUALITY MANAGEMENT, INC., an Ohio corporation (“EQMI”),
EQ ENGINEERS, LLC, an Indiana limited liability company (“EQE”), VERTTERRE CORPORATION, a New Mexico corporation
(“Vertterre”),or any other Borrower from time to time party to the Loan Agreement (EQMI, EQE, and Vertterre,
together with each other Borrower from time to time party to the Loan Agreement, each a “Borrower” and collectively,
the “Borrowers”), Guarantor hereby absolutely, irrevocably and unconditionally guarantees to Bank: (i) the full
and prompt payment when due of the principal of, all interest on, and all fees in respect of, all of the Loans and Letter of Credit
Obligations and (ii) the full and prompt payment and performance of any and all other Obligations, whether all or any portion of
such Loans, Letter of Credit Obligations and other Obligations are now or hereafter existing, direct or indirect, related or unrelated,
joint or several, or absolute or contingent, whether or not for the payment of money, and whether arising by reason of an extension
of credit, opening of a letter of credit, loan, guarantee, rate management obligation or in any other manner (all of the indebtedness,
liabilities and obligations described in the foregoing clauses (i) and (ii) of this Section 1.1 which are outstanding from
time to time are collectively referred to as the “Guaranteed Obligations”). Guarantor hereby absolutely, irrevocably
and unconditionally guarantees to Bank the full and prompt payment and performance of the Guaranteed Obligations when any of the
Guaranteed Obligations are due, including, without limitation, on the occurrence of an Event of Default, by reason of the maturity
or acceleration of any of the Guaranteed Obligations, on the occurrence of a default under the terms of this Guaranty, or otherwise,
and at any times after the date when due.

 

1.2           Capitalized
Terms. Capitalized terms used, but not defined, in this Guaranty, have the meanings attributed to them in the Existing Loan
Agreement, as amended by the First Amendment (as amended, as the same may be further amended, renewed, consolidated, restated or
replaced from time to time, the “Loan Agreement”). Guarantor has had an opportunity to review the Loan Agreement
and the other Loan Documents and to discuss the same with counsel. As used herein:

 

    	 

    	 

    

  

“Event of
Default” has the meaning given in Section 5.1.

 

“Material
Adverse Effect” means a material adverse effect, as determined by Bank in good faith, on (i) Guarantor’s and/or
the Borrowers’, as applicable: (a) business, property, assets, operations or condition, financial or otherwise or (b) ability
to perform any of its payment or other Obligations under this Guaranty or any of the other Loan Documents to which Guarantor is
a party, (ii) the recoverable value of the Loan Collateral or Bank’s rights or interests therein, (iii) the enforceability
of any of the Loan Documents to which Guarantor is a party, or (iv) the ability of Bank to exercise any of its rights or remedies
under the Loan Documents or by law provided.

 

“Parent Pledge
Agreement” means the Pledge Agreement dated as of September 28, 2012, executed by Parent in favor of Bank, among other
things, granting a Lien in favor of Bank on all of the now and hereafter acquired equity interests of EQMI, and its successors
and assigns.

 

“Permitted
Liens” means the Liens and interests in favor of Bank granted or provided under the Loan Documents and, to the extent
reflected on Guarantor’s books and records and not impairing the operations of Guarantor or any performance under, or contemplated
by, the Loan Documents:

 

(i)          Liens
arising by operation of law for taxes not yet due and payable;

 

(ii)         Liens
of mechanics, materialmen, shippers and warehousemen for services or materials for which payment is not yet due;

 

(iii)        Liens
incurred or deposits made in the ordinary course of Guarantor’s business in connection with workers’ compensation,
unemployment insurance and other types of social security;

 

(iv)        Liens,
if any, specifically permitted by Bank from time to time in writing;

 

(v)         Liens
on Equipment securing Indebtedness under capitalized leases or purchase money Indebtedness so long as (a) the total amount of obligations
secured by the purchase money security interests or the subject of capitalized leases during any period does not, together with
any other capital expenditures made by Guarantor for the applicable period, exceed $300,000 in the aggregate in any fiscal year
for Guarantor; (b) such purchase money Indebtedness or capitalized lease Indebtedness will not be secured by any of the Loan Collateral
other than the property so acquired and any identifiable proceeds, (c) any Liens relating to such purchase money Indebtedness or
capitalized lease Indebtedness will not extend to or cover any property of Guarantor other than the property so acquired and any
identifiable proceeds, and (d) the principal amount of such capitalized lease or purchase money Indebtedness will not, at the time
of the incurrence thereof, exceed the value of the property so acquired;

 

(vi)        Liens
for taxes, assessments and other similar charges to the extent payment thereof shall not at the time be required to be made;

 

(vi)        those
Liens described on Schedule II; provided that those Liens secure only the Indebtedness which the Liens secure on
the Effective Date; and

 

(vii)       Liens
arising from the claims or demands of materialmen, mechanics, carriers, warehousemen, landlords, bailees and other like Persons
(“Third Party Claims”) if each of the following conditions is met: (a) the validity or amount of the Third Party
Claim is being contested in good faith and by appropriate and lawful proceedings promptly initiated and diligently conducted, (b)
Guarantor has given prior notice to Bank of the Third Party Claim, (c) Guarantor has established appropriate reserves (in Bank’s
reasonable discretion exercised in good faith) for the Third Party Claim, (d) levy and execution on the Third Party Claim have
been and continue to be stayed, (e) the Third Party Claim does not prevent Bank from having a perfected first priority security
interest in, or a first priority Lien on, the Loan Collateral, (f) Guarantor’s title to, and its right to use, any of the
Loan Collateral are not, in Bank’s judgment exercised in good faith, materially affected thereby, and (g) the amount of all
Third Party Claims do not exceed, as of any date, $100,000 in the aggregate for Guarantor; and, provided, further, that
Guarantor must promptly pay each such Third Party Claim to the extent the dispute is finally settled in favor of the claimant thereof.

 

1.3           Security.
This Guaranty and the Guaranteed Obligations are secured by the Parent Pledge Agreement. Bank shall have all of its rights and
remedies set forth in the Parent Pledge Agreement.

 

    	- 2 -

    	 

    

 

		2.	NATURE OF THE GUARANTY.

 

2.1           Absolute
Obligations. The obligations of Guarantor under this Guaranty are absolute and unconditional and will be continuing and remain
in full force and effect subject to Sections 2.2 and 2.6. This is a continuing guaranty of payment and not of collection.
Guarantor’s obligations under this Guaranty will not be released, discharged, affected, modified or impaired by any event,
including, without limitation, any of the following events:

 

(i)          the
compromise, settlement, release, discharge or termination of any or all of the Guaranteed Obligations by operation of law or otherwise,
except as may result from the full and prompt performance and payment of the Guaranteed Obligations;

 

(ii)         the
extension of the time for payment of any of the Guaranteed Obligations, or the waiver, modification or amendment (whether material
or otherwise) of any of the Guaranteed Obligations or the acceptance of partial payments of the Guaranteed Obligations;

 

(iii)        the
taking or failure to take any action under the Loan Agreement, any of the other Loan Documents or this Guaranty;

 

(iv)        the
invalidity or unenforceability of any provision of the Loan Agreement, any of the other Loan Documents, or this Guaranty or any
other defense any Borrower or other obligor or guarantor of the Guaranteed Obligations may assert to the payment or performance
of the Guaranteed Obligations other than payment and satisfaction in full of all of the Guaranteed Obligations;

 

(v)         any
(a) failure by Bank to take any steps to perfect, maintain, or enforce its Liens on any of the Loan Collateral, (b) subordination
of any of the Guaranteed Obligations and any security therefor to any other Indebtedness of any Borrower to any Person, or (c)
loss, release, substitution of, or other dealings with, any collateral or other security given to Bank with respect to the Guaranteed
Obligations;

 

(vi)        the
voluntary or involuntary liquidation, dissolution, sale or other disposition of all or substantially all of the assets, marshaling
of assets and liabilities, receivership, insolvency, bankruptcy, assignment, composition with creditors or readjustment of, or
other similar proceedings affecting any Borrower, Guarantor, LGP, Grand Prairie or any other obligor or guarantor of any or all
of the Guaranteed Obligations;

 

(vii)       any
allegation of invalidity or contest of the validity of this Guaranty in any of the proceedings described in clause (vi) of this
Section 2.1;

 

(viii)      any
act, election or remedy, or other election, occurrence or circumstance of any nature, whether or not under Bank’s control,
that may affect or impair any subrogation right of Guarantor or the effectiveness or value thereof;

 

(ix)         the
default or failure of Guarantor to perform fully any of its obligations set forth in this Guaranty;

 

(x)          Bank’s
election, in any proceeding instituted under Chapter 11 of Title 11 of the United States Code (the “Bankruptcy Code”),
of the application of Section 1111(b)(2) of the Bankruptcy Code;

 

(xi)         any
borrowing or grant of a security interest by any Borrower, as debtor-in-possession, under Section 364 of the Bankruptcy Code;

 

(xii)        the
disallowance of all or any portion of Bank’s claim(s) for repayment of the Guaranteed Obligations under Section 502 of the
Bankruptcy Code; or

 

(xiii)       any
other circumstance which might otherwise constitute a legal or equitable discharge or defense of a guarantor other than payment
and satisfaction in full of all of the Guaranteed Obligations.

 

2.2           Revival
of Guaranty. If (i) any demand is made at any time on Bank for the repayment of any amount received by it or as proceeds of
any collateral or security which have been applied in payment of any of the Guaranteed Obligations, and (ii) Bank makes any repayment
by reason of any judgment, decree or order of any court or administrative body or by reason of any settlement or compromise of
such demand, Guarantor will be liable under this Guaranty for all amounts so repaid to the same extent as if such amounts had never
been received originally by Bank.

 

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2.3           Waivers
By Guarantor. Guarantor hereby covenants that this Guaranty will not be discharged except by complete performance of the obligations
contained in this Guaranty. Guarantor waives all setoffs and counterclaims and all presentments, demands for performance, notices
of nonperformance, protests, notices of protest, notices of dishonor, and notices of acceptance of, and reliance on, this Guaranty.
Guarantor further waives all (i) notices of the existence, creation or incurring of new or additional Indebtedness arising either
from additional loans extended to any Borrower or otherwise, (ii) notices that the principal amount, or any portion thereof (and
any interest thereon), of the Loans or any of the other Guaranteed Obligations is due, (iii) notices of any and all proceedings
to collect from any Borrower, any indorser or any other guarantor of all or any part of the Guaranteed Obligations, or from anyone
else, (iv) to the extent permitted by law, notices of exchange, sale, surrender or other handling of any security or collateral
given to Bank to secure payment of all or any part of the Guaranteed Obligations, and (v) defenses based on suretyship or impairment
of collateral.

 

2.4           Application
of Proceeds by Bank. Bank will have the exclusive right to determine, in its sole discretion, the order and method of the application
of payments from and credits to, if any, Guarantor, Borrowers, Landfill Gas Production, L.L.C., a Delaware limited liability company
(“LGP”), Grand Prairie Landfill Gas Production, Limited Liability Company, a Texas limited liability company
(“Grand Prairie”), or any other Person on account of the Guaranteed Obligations or of any other liability of
Guarantor to Bank.

 

2.5           Responsibility
of Guarantor. Guarantor hereby assumes responsibility for keeping itself informed of the financial condition of Borrowers and
any and all indorsers, obligors or other guarantors of any instrument or document evidencing all or any part of the Guaranteed
Obligations and of all other circumstances bearing on the risk of nonpayment of the Guaranteed Obligations or any part thereof
that diligent inquiry would reveal. Bank will have no duty to advise Guarantor of information known to Bank regarding such condition
or any such circumstances.

 

2.6           Termination
of Guaranty. Except as provided in Section 2.2, Guarantor’s obligations under this Guaranty for the Guaranteed
Obligations will terminate upon the later to occur of: (a) the payment and performance in full of the Guaranteed Obligations and
(b) the Payment in Full of the Obligations.

 

2.7           Taxes.
All payments to be made hereunder by Guarantor shall be made without setoff, counterclaim or other defense. All such payments shall
be made free and clear of and without deduction for or on account of, any present or future income, stamp or other taxes, levies,
imposts, duties, charges, fees, deductions or withholdings, now or hereafter imposed, levied, collected, withheld or assessed by
any governmental authority (collectively, “Taxes”) excluding Taxes imposed on or measured by Bank’s gross
or net income, franchise taxes, branch profits taxes, taxes on doing business or taxes measured by or imposed upon the overall
capital or net worth of Bank or its applicable lending office, or any branch or affiliate thereof, in each case imposed by the
jurisdiction under the laws of which Bank, applicable lending office, branch or affiliate is organized or is located, or any nation
within which such jurisdiction is located or any political subdivision thereof. If any Taxes are imposed and required to be withheld
from any amount payable by Guarantor hereunder, Guarantor shall be obligated to (a) pay such additional amount so that Bank will
receive a net amount (after giving effect to the payment of such additional amount and to the deduction of all Taxes) equal to
the amount due hereunder, (b) pay such Taxes to the appropriate taxing authority for the account of Bank, and (c) as promptly as
possible thereafter, send Bank a certified copy of any original official receipt showing payment thereof, together with such additional
documentary evidence as Bank may from time to time require in its discretion exercised in good faith. If Guarantor fails to pay
any Taxes when due to the appropriate taxing authority or fails to remit to Bank the required receipts or other required documentary
evidence, Guarantor shall be obligated to indemnify Bank for any incremental Taxes, interest or penalties that may become payable
by Bank as a result of such failure. The obligations of Guarantor under this Section 2.7 shall survive the repayment of
the Guaranteed Obligations and the termination of the Loan Agreement and the other Loan Documents.

 

		3.	REPRESENTATIONS AND WARRANTIES; COVENANTS.

 

3.1           Representations
and Warranties. To induce Bank to have extended and to continue to extend the Guaranteed Obligations, and for other good and
valuable consideration, Guarantor hereby represents and warrants to Bank that:

 

(a) This Guaranty
is the legal, valid and binding obligation of Guarantor, enforceable in accordance with its terms;

 

(b) The execution,
delivery, and such performance of this Guaranty does not and will not, by the lapse of time, by the giving of notice, or the satisfaction
of any other condition, violate or contravene any authority having the force of law or any agreement, instrument or other document
to which Guarantor is a party or by which Guarantor or any of its properties is or may be bound;

 

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(c) The execution
and delivery of this Guaranty by Guarantor does not: (i) require any consent or approval of any Person, (ii) violate, or constitute
a default under, any rule or provision of Guarantor’s articles, certificates, regulations, bylaws, operating agreement, any
resolution of its members, managers, or directors, as applicable, or other agreement, document or instrument to which Guarantor
is a party or by which Guarantor or any of Guarantor’s properties is or may be bound or affected, (iii) violate, or constitute
a default under, any law, requirement, rule, regulation, ordinance or restriction of any Governmental Authority or agency applicable
to Guarantor or by which Guarantor’s properties are bound or affected, or (iv) result in the creation or imposition of any
Lien on any of the property of Guarantor except in favor of Bank;

 

(d) There is no action
or proceeding pending before any court or Governmental Authority which materially, adversely affects the condition (financial or
otherwise) of Guarantor or any of its properties;

 

(e) Attached hereto
as Schedule I, and incorporated by reference herein, is a true and complete listing of all Indebtedness for borrowed money
of Guarantor as of the First Amendment Closing Date. Except as set forth on Schedule I, Guarantor has not guaranteed the
obligations of any Person (except in favor of Bank and by indorsement of negotiable instruments payable at sight for deposit or
collection or similar banking transactions in the usual course of such entity’s business);

 

(f)          Guarantor
(i) is duly organized and is and shall remain validly existing and in good standing under the laws of Delaware, and is and shall
remain qualified to do business as a foreign corporation under the laws of each jurisdiction in which the failure to be so qualified
and in good standing could reasonably be expected to have a Material Adverse Effect, and (ii) has and shall maintain all requisite
power and authority, corporate or otherwise, to conduct its business, to own its property, to execute, deliver and perform all
of its obligations under this Guaranty and each of the other Loan Documents, as applicable, to which Guarantor is a party.

 

3.2           Covenants.
Until this Guaranty is terminated in accordance with its terms:

 

(a)          Indebtedness.
Without Bank’s prior written consent, Guarantor will not incur any Indebtedness other than: (i) the Additional Beacon Noteholder
Subordinated Debt, the December 2011 Beacon Noteholder Subordinated Debt, and the other Indebtedness set forth on Schedule I;
(ii) the Guaranteed Obligations; (iii) Indebtedness (A) which is unsecured, (B) which is not for borrowed money, (C) which has
been incurred in the ordinary course of Guarantor’s or its Subsidiaries’ business, (D) which is not otherwise prohibited
under any provision of this Guaranty, and (E) the nonpayment of or other default under which would not have a Material Adverse
Effect; (iv) Indebtedness in respect of taxes, assessments or governmental charges to the extent that payment thereof shall not
at the time be required to be made; (v) Indebtedness in respect of judgments or awards which (1) have been vacated, discharged
or stayed within 10 days of the entry thereof or have been in force for less than the applicable appeal period so long as
execution is not levied thereunder (or in respect of which (A) Guarantor shall at the time in good faith be prosecuting an appeal
or proceedings for review and (B) a stay of execution shall have been obtained pending such appeal or review), and (2) (A) are
not, in the aggregate, in an amount in excess of $100,000 (and individually in excess of $50,000) of any available insurance coverage,
as determined by Bank in its discretion exercised in good faith, in effect to satisfy such judgments or award for which the insurer
has admitted in writing its liability for the full amount thereof and (B) do not have a Material Adverse Effect (regardless of
monetary amount or insurance coverage); (vi) Indebtedness under capitalized leases or purchase money financing if (1) such Indebtedness
is not secured by any of the Loan Collateral other than the property so acquired and any identifiable proceeds, (2) any Liens relating
to such Indebtedness do not extend to or cover any property of Guarantor other than the property so acquired and any identifiable
proceeds therefrom, (3) the principal amount of such capitalized lease or purchase money Indebtedness will not, at the time of
the incurrence thereof, exceed the value of the property so acquired; and (4) the total amount of such Indebtedness during any
period does not exceed $300,000 for Guarantor in any fiscal year; and (vii) Indebtedness representing reimbursement obligations
and other liabilities of Guarantor with respect to surety bonds (whether payment, performance or otherwise), letters of credit,
banker’s acceptances, drafts or similar documents or instruments issued for Guarantor’s account in the ordinary course
of Guarantor’s business; provided, that no Indebtedness otherwise permitted under this Section 3.2(a) to be
incurred shall be permitted to be incurred if, after giving effect to the incurrence thereof, any Event of Default shall have occurred
and be continuing.

 

(b)          Guaranties.
Without Bank’s prior written consent, Guarantor will not guaranty or enter into any agreements of guaranty or indemnity of
the obligations of any Person except (i) those guaranties which are in favor of Bank; (ii) by indorsement of negotiable instruments
payable at sight for deposit or collection or similar banking transactions in the usual course of such Guarantor’s business,
(iii) guaranties of direct obligations of Guarantor’s direct and indirect Subsidiaries, which obligations are permitted under
the Loan Documents, and (iv) the indemnification of officers, directors, employees, agents and other persons indemnified by Guarantor
from time to time consistent with Guarantor’s charter documents.

 

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(c)          Payments
on Subordinated Debt; Amendments. Guarantor will not, and will not permit any of its Subsidiaries to: (i) make any payment
(including any principal, premium, interest, fee or charge) with respect to any of the Additional Beacon Noteholder Subordinated
Debt or the December 2011 Beacon Noteholder Subordinated Debt except as expressly permitted by the Additional Beacon Noteholder
Subordination Agreement or the December 2011 Beacon Noteholder Subordination Agreement, as applicable; (ii) repurchase or acquire
for value any of the Additional Beacon Noteholder Subordinated Debt or the December 2011 Beacon Noteholder Subordinated Debt except
as expressly permitted by the Additional Beacon Noteholder Subordination Agreement or the December 2011 Beacon Noteholder Subordination
Agreement, as applicable; or (iii) amend, or consent to any amendment to, the Additional Beacon Noteholder Subordinated Debt Documents,
the December 2011 Beacon Noteholder Subordinated Debt Documents, or any one or more thereof.

 

(d)          
Title to Property; No Liens. Guarantor will have: (i) good and indefeasible title to, and ownership of, all of its personal
property and (ii) good and marketable fee simple title to all of its real property, in each case free and clear of all Liens except
to the extent of Permitted Liens.

 

(e)          Maintenance
of Books and Records; Access and Inspection. Guarantor shall, and shall cause each of its Subsidiaries to, keep and maintain
complete books of account, records and files with respect to its business in accordance with GAAP consistently applied and shall
accurately and completely record all transactions therein. Bank may, at all times during normal business hours, have (i) access
to, and the right to examine and inspect, all of Guarantor’s real and personal property and (ii) access to, and the right
to inspect, audit and make extracts from, all of Guarantor’s records, files and books of account, and Guarantor shall execute
and deliver at the request of Bank such instruments as may be necessary for Bank to obtain such information concerning the business
of Guarantor as Bank may require from any Person; however, unless an Event of Default has occurred or exists, Bank will
give Guarantor reasonable notice before it makes the inspections and examinations at any office or place of business of Guarantor.

 

(f)          Mergers;
Acquisitions. Guarantor will not merge or consolidate or be merged or consolidated with or into any other Person, or otherwise
reorganize, liquidate or wind-up or dissolve itself.

 

(g)          Liability
Insurance. Guarantor will, at all times, maintain in full force and effect such liability insurance with respect to its activities
and business interruption, product liability and other insurance as may be reasonably required by Bank, such insurance to be provided
by insurer(s) reasonably acceptable to Bank. Such insurance shall name Bank as an additional insured containing a severability
of interest/cross-liability endorsement acceptable to Bank.

 

(h)          Property
Insurance. Guarantor will insure all of its real and personal property against loss or damage by fire, theft, burglary, pilferage,
loss in transit and such other extended coverage hazards as Bank shall specify in amounts and under policies by insurers reasonably
acceptable to Bank. The policies or a certificate thereof signed by the insurer evidencing that such insurance coverage is in effect
for periods of not less than one year (as measured from the date of renewal) shall be delivered to Bank within five Business Days
after the issuance of the policies to Guarantor and after each renewal thereof. All premiums thereon shall be paid by Guarantor
when due so as to keep such insurance in full force and effect at all times. With respect to any policy insuring any Loan Collateral,
such policy shall name Bank (and no other party, except to the extent of Permitted Liens) as loss payee and, as appropriate, mortgagee
under a New York standard mortgagee clause or other similar clause acceptable to Bank and shall provide that such policy may not
be amended or canceled without 30 days prior written notice to Bank. If Guarantor fails to do so, Bank may (but shall not be required
to) procure such insurance with respect to any of the Loan Collateral, and all such costs and expenses incurred by Bank shall be
payable by Guarantor on demand and secured by the Loan Collateral provided by Guarantor.

 

(i)          Solvency.
Guarantor will continue to be Solvent.

 

3.3           Parent
Pledge Agreement. Guarantor will perform, observe and comply with all of the terms and conditions of the Parent Pledge Agreement.

 

4.          EXPENSES.
Guarantor will pay all of the costs, expenses and fees, including, without limitation, all reasonable attorneys’ fees, incurred
by Bank in enforcing or attempting to enforce this Guaranty, whether the same is enforced by suit or otherwise, and all amounts
recoverable by law, including, without limitation, interest on any unpaid amounts due under this Guaranty.

 

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		5.	DEFAULT; SUBORDINATION; MAXIMUM LIABILITY.

 

5.1           Events
of Default. (i) Each of the following events, whether or not caused by or within the control of Guarantor, will constitute
an “Event of Default” under this Guaranty:

 

(a)          Guarantor
does not pay, when due, any of the Indebtedness owing from such Guarantor to Bank;

 

(b)          Guarantor
does not observe, perform, or comply with any term or provision of this Guaranty or of any of the other Loan Documents to which
such Guarantor is a party or by which it is bound (exclusive of those defaults covered by the other clauses of this Section
5.1(i));

 

(c)          Guarantor
fails to make any payment due to any Affiliate of Bank, materially breaches any agreement between such Guarantor and any Affiliate
of Bank, or makes any material misrepresentation to any Affiliate of Bank;

 

(d)          Any
representation, warranty or statement made by, or on behalf of Guarantor, (1) in this Guaranty, in connection with this Guaranty,
in connection with any transaction relating to this Guaranty or in any of the other Loan Documents was false in any material respect,
in the good faith judgment of Bank, when made or furnished or when treated as being made or furnished or (2) to induce Bank to
make any Loan was false in any material respect, in the good faith judgment of Bank, when made or furnished or when treated as
being made or furnished;

 

(e)          Guarantor:
(1) is, as of any date, not Solvent, (2) becomes generally unable to pay its debts as they become due, (3) makes a general assignment
for the benefit of creditors, or (4) calls a meeting of creditors for the composition of debts; or the Board of Directors of Guarantor
(or any committee thereof) adopts a resolution authorizing or has otherwise authorized the actions described in subitems (3) or
(4) of this clause (e);

 

(f)          (1)
There is filed by Guarantor any case, petition, proceeding or other action (“Bankruptcy Case”) under any existing
or future bankruptcy, insolvency, reorganization, liquidation or arrangement or readjustment of debt law or any similar existing
or future law of any applicable jurisdiction (“Insolvency Law”), (2) an involuntary Bankruptcy Case (“Involuntary
Proceeding”) is commenced against Guarantor under any Insolvency Law and the Involuntary Proceeding is not controverted
within 10 days, or is not dismissed within 60 days, after the commencement of the Bankruptcy Case, or (3) a custodian, receiver,
trustee, sequestrator, or agent is appointed or authorized to take charge of any of Guarantor’s properties;

 

(g)          An
event or development occurs that Bank, in good faith, determines has had a Material Adverse Effect;

 

(h)          There
occurs an uninsured casualty loss with respect to Guarantor’s assets having an aggregate fair market value of greater than
$100,000;

 

(i)          Any
default occurs under the terms applicable to any Indebtedness of Guarantor in an aggregate amount exceeding $250,000 which represents
any borrowing or financing from, by or with any Person;

 

(j)          A
contribution failure occurs with respect to any Pension Plan sufficient to give rise to a Lien under Section 302(f) of ERISA;

 

(k)          There
is instituted against Guarantor any criminal proceeding for which forfeiture of any asset having an aggregate fair market value
of greater than $500,000 is a potential penalty and is reasonably likely to occur, or Guarantor is enjoined, restrained or in any
way prevented by order of any Governmental Authority from conducting any material part of its business affairs and such order is
not completely stayed, to the satisfaction of Bank, or dissolved within one Business Day from the effective date of such order;

 

(l)          Guarantor
shall voluntarily dissolve or cease to exist, or any final and nonappealable order or judgment shall be entered against Guarantor
decreeing its involuntary dissolution; or

 

(m)          Guarantor
or any of its Subsidiaries discovers, identifies, is given notice by any Person, or otherwise has knowledge of (1) the existence
of any Environmental Liability or (2) any one or more Releases of Hazardous Substances on, about or affecting any real property
owned or occupied by Guarantor or its Subsidiaries or Guarantor’s business operations, which, (A) is not entirely covered
by insurance and (B) by itself or in the aggregate, will or could reasonably be estimated to subject Guarantor to indebtedness,
liability, or obligations in excess of $500,000 during the term of this Guaranty.

 

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(ii)         Each
Event of Default will be deemed continuing until it is waived in writing by, or cured to the written satisfaction of, Bank.

 

5.2           Payment
of Guaranteed Obligations. At any time after all or any portion of the Guaranteed Obligations are due and payable, whether
on maturity, after the acceleration of any of the Guaranteed Obligations, on the occurrence of an Event of Default, on the occurrence
of any default under this Guaranty, or otherwise: (i) Guarantor will, on the demand of Bank, immediately deposit with Bank in U.S.
dollars the total amount of the Guaranteed Obligations due and payable (whether due and payable as a result of maturity, acceleration,
or otherwise), and (ii) Bank will have the right: (a) to proceed directly against Guarantor under this Guaranty without first exhausting
any other remedy it may have and without resorting to any security or guaranty held by Bank, (b) to compromise, settle, release,
discharge or terminate any of the obligations of any other obligor(s) or guarantor(s) of the Guaranteed Obligations as Bank, in
its discretion, determines without thereby in any way affecting, limiting or diminishing its rights thereafter to enforce the obligations
of Guarantor under this Guaranty, (c) to sell, collect, or otherwise dispose of and to apply the proceeds of any collateral or
other security given to Bank with respect to the Guaranteed Obligations in satisfaction of the Guaranteed Obligations in such order
and method of application as may be elected by Bank in its discretion exercised in good faith, and (d) to exercise all of Bank’s
other powers, rights and remedies under this Guaranty, the Parent Pledge Agreement, the other Loan Documents and under applicable
law. Bank will not have any obligation to marshal any assets in favor of Guarantor or against or in payment of any or all of the
Guaranteed Obligations.

 

5.3           Subordination.
Until the Guaranteed Obligations have been fully paid, performed and satisfied: (i) any and all claims of Guarantor against Borrowers
(or any one of them), LGP, Grand Prairie, any indorser or any other obligor or guarantor of all or any part of the Guaranteed Obligations,
or against any of their respective properties are, by the signing of this Guaranty by Guarantor, made subordinate and subject in
right of payment and performance to the prior payment and performance to Bank in full of all of the Guaranteed Obligations; and
(ii) Guarantor will not exercise any right to enforce any remedy which Guarantor now has or may in the future have against any
Borrower, any indorser or any other obligor or guarantor of all or any part of the Guaranteed Obligations.

 

5.4           Maximum
Liability. The provisions of this Guaranty are severable, and in any action or proceeding involving any state corporate law,
or any state, federal or foreign bankruptcy, insolvency, reorganization or other law affecting the rights of creditors generally,
if the obligations of Guarantor under this Guaranty would otherwise be held or determined to be avoidable, invalid or unenforceable
on account of the amount of Guarantor’s liability under this Guaranty, then, notwithstanding any other provision of this
Guaranty to the contrary, the amount of such liability shall, without any further action by Guarantor or Bank, be automatically
limited and reduced to the highest amount that is valid and enforceable as determined in such action or proceeding (such highest
amount determined hereunder being Guarantor’s “Maximum Liability”). This Section with respect to the Maximum
Liability of Guarantor is intended solely to preserve the rights of Bank to the maximum extent not subject to avoidance under applicable
law, and neither Guarantor nor any other Person or entity shall have any right or claim under this Section with respect to such
Maximum Liability, except to the extent necessary so that the obligations of Guarantor hereunder shall not be rendered voidable
under applicable law. Guarantor agrees that the Guaranteed Obligations may at any time and from time to time exceed the Maximum
Liability of Guarantor without impairing this Guaranty or affecting the rights and remedies of Bank hereunder; provided
that, nothing in this sentence shall be construed to increase Guarantor’s obligations hereunder beyond its Maximum Liability.

 

		6.	GENERAL.

 

6.1           Cumulative
Remedies. The remedies provided in this Guaranty, the Loan Agreement, and the other Loan Documents are cumulative and not exclusive
of any remedies provided by law. Exercise of one or more remedy(ies) by Bank does not require that all or any other remedy(ies)
be exercised and does not preclude later exercise of the same remedy. If there is any conflict, ambiguity, or inconsistency, in
Bank’s judgment, between the terms of this Guaranty and any of the Loan Agreement or other Loan Documents, then the applicable
terms and provisions, in Bank’s judgment, providing Bank with the greater rights, remedies, powers, privileges, or benefits
will control.

 

6.2           Waivers
and Amendments in Writing. Failure by Bank to exercise any right, remedy or option under this Guaranty, the Loan Agreement
or in any other Loan Document or delay by Bank in exercising the same shall not operate as a waiver by Bank of its right to exercise
any such right, remedy or option. No waiver by Bank shall be effective unless it is in writing and then only to the extent specifically
stated. This Guaranty cannot be amended, modified, changed or terminated orally.

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6.3           Entire
Agreement; Counterparts; Fax Signatures. This Guaranty and the other Loan Documents to which Guarantor is a party constitute
the entire agreement between the parties with respect to the subject matter of this Guaranty, and supersede all prior written and
oral agreements and understandings. Any request from time to time by Guarantor for Bank’s consent under any provision in
this Guaranty must be in writing, and any consent to be provided by Bank under this Guaranty from time to time must be in writing
in order to be binding on Bank; however, Bank will have no obligation to provide any consent requested by Guarantor, and
Bank may, for any reason in its discretion exercised in good faith, elect to withhold the requested consent. Two or more duplicate
originals of this Guaranty may be signed by the parties, each of which shall be an original but all of which together shall constitute
one and the same instrument. Any documents delivered by, or on behalf of, Guarantor by facsimile transmission or other electronic
delivery of an image file reflecting the execution hereof: (i) may be relied on by each party as if the document were a manually
signed original and (ii) will be binding on each party for all purposes of the Loan Agreement and other Loan Documents.

 

6.4           Headings;
Construction. Section headings in this Guaranty are included for convenience of reference only and shall not relate to the
interpretation or construction of this Guaranty. Any and all references in this Guaranty to any other document or documents will
be references to that other document or documents as they may, from time to time, be modified, amended, renewed, consolidated,
extended or replaced.

 

6.5           Separate
Instrument. This Guaranty constitutes a separate instrument, enforceable in accordance with its terms, and neither this Guaranty
nor the obligations of Guarantor under this Guaranty will, under any circumstance or in any legal proceeding, be deemed to have
merged into any other agreement or obligation of Guarantor.

 

6.6           Severability.
If any term of this Guaranty is found invalid under Ohio law or laws of mandatory application by a court of competent jurisdiction,
that invalid term will be considered excluded from this Guaranty and will not invalidate the remaining terms of this Guaranty.

 

6.7           OHIO
LAW. THIS GUARANTY HAS BEEN DELIVERED AT AND ACCEPTED AT AND SHALL BE DEEMED TO HAVE BEEN MADE IN HAMILTON COUNTY, OHIO. THIS
GUARANTY SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL LAWS OF THE STATE OF OHIO (WITHOUT REFERENCE
TO OHIO CONFLICTS OF LAW PRINCIPLES).

 

6.8           WAIVER
OF JURISDICTION. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR BANK TO ACCEPT THIS GUARANTY AND TO HAVE EXTENDED AND TO CONTINUE
TO EXTEND CREDIT TO BORROWERS, GUARANTOR AND BANK AGREE THAT ANY ACTION, SUIT OR PROCEEDING IN RESPECT OF OR ARISING OUT OF THIS
GUARANTY, ITS VALIDITY OR PERFORMANCE, AND WITHOUT LIMITATION ON THE ABILITY OF BANK, ITS SUCCESSORS AND ASSIGNS, TO EXERCISE ALL
RIGHTS AS TO THE LOAN COLLATERAL AND TO INITIATE AND PROSECUTE IN ANY APPLICABLE JURISDICTION ACTIONS RELATED TO REPAYMENT OF THE
GUARANTEED OBLIGATIONS, SHALL BE INITIATED AND PROSECUTED AS TO ALL PARTIES AND THEIR SUCCESSORS AND ASSIGNS AT CINCINNATI, OHIO.
BANK AND GUARANTOR EACH CONSENTS TO AND SUBMITS TO THE EXERCISE OF JURISDICTION OVER ITS PERSON BY ANY COURT SITUATED AT CINCINNATI,
OHIO HAVING JURISDICTION OVER THE SUBJECT MATTER, AND CONSENTS THAT ALL SERVICE OF PROCESS BE MADE BY CERTIFIED MAIL DIRECTED TO
GUARANTOR AND BANK AT THEIR RESPECTIVE ADDRESSES SET FORTH IN THIS GUARANTY OR AS OTHERWISE PROVIDED UNDER THE LAWS OF THE STATE
OF CINCINNATI, OHIO. GUARANTOR WAIVES ANY OBJECTION BASED ON FORUM NON CONVENIENS, AND ANY OBJECTION TO VENUE OF ANY ACTION
INSTITUTED HEREUNDER, AND CONSENTS TO THE GRANTING OF SUCH LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY THE COURT.

 

6.9           Successors
and Assigns. This Guaranty will inure to the benefit of Bank, its successors and assigns and be binding on the successors and
assigns of Guarantor.

 

6.10         Notices.
Any notice required, permitted or contemplated hereunder shall, except as expressly provided in this Guaranty, be in writing and
addressed to the party to be notified at the address set forth below or at such other address as each party may designate for itself
from time to time by notice hereunder, and shall be deemed validly given: (i) three days following deposit in the U.S. certified
mails (return receipt requested), with proper postage prepaid, or (ii) the next Business Day after such notice was delivered to
a regularly scheduled overnight delivery carrier with delivery fees either prepaid or an arrangement satisfactory with such carrier
made for the payment thereof, or (iii) upon receipt of notice given by telecopy (fax), mailgram, telegram, telex or personal delivery:

 

    	- 9 -

    	 

    

 

	 	To Guarantor:	EQM Technologies & Energy, Inc.
	 	 	1800 Carillon Boulevard
	 	 	Cincinnati, Ohio 45240
	 	 	Attention: Robert R. Galvin 
	 	 	Fax: (513) 825-7495
	 	 	 
	 	To Bank:	First Financial Bank, National Association
	 	 	255 E. Fifth Street, Suite 800
	 	 	Cincinnati, Ohio 45202
	 	 	Attention: Mr. Thomas J. Fischer, Vice President
	 	 	Fax: (513) 246-1872
	 	 	 

6.11         Separate
Action. Each default in payment of any amount due under this Guaranty will, at Bank’s sole option, give rise to a separate
cause of action under this Guaranty, and separate suits, at Bank’s sole option, may be brought under this Guaranty as each
cause of action arises.

 

6.12         Survival
and Continuation of Representations and Warranties. All of Guarantor’s representations and warranties contained in this
Guaranty shall: (i) survive the execution, delivery and acceptance hereof by the parties hereto and the closing of the transactions
described herein or related hereto, (ii) be deemed to be made as of each and every day of the term of this Guaranty, and (iii)
remain true until the Guaranteed Obligations are fully performed, paid and satisfied, subject to any changes to such representations
and warranties that (a) are not prohibited hereby, (b) do not constitute defaults hereunder, or (c) have been consented to by Bank
in writing.

 

6.13         Equitable
Relief. Guarantor recognizes that, in the event that Guarantor fails to perform, observe or discharge any of its obligations
or liabilities under this Guaranty, any remedy at law may prove to be inadequate relief to Bank; therefore, Guarantor agrees
that Bank, if Bank so requests, shall be entitled to temporary and permanent injunctive relief in any such case without the necessity
of proving actual damages.

 

6.14         WAIVER
OF JURY TRIAL. AS A SPECIFICALLY BARGAINED INDUCEMENT FOR BANK TO ENTER INTO THIS GUARANTY AND TO HAVE EXTENDED AND TO CONTINUE
TO EXTEND CREDIT TO BORROWERS, GUARANTOR AND BANK EACH WAIVE TRIAL BY JURY WITH RESPECT TO ANY ACTION, CLAIM, SUIT OR PROCEEDING
IN RESPECT OF OR ARISING OUT OF THIS GUARANTY.

 

6.15         Indemnity.
Guarantor shall indemnify, defend, save and hold Bank, its affiliates, and their respective officers, directors, attorneys, and
employees harmless of, from and against all claims, demands, liabilities, judgments, losses, damages, taxes, costs and expenses,
joint or several (including all accounting fees and reasonable attorneys’ fees), that Bank or any such indemnified party
may incur arising out of this Guaranty or any act taken by Bank hereunder (including any arising out of the comparative, contributory
or sole negligence of any of Bank or any such indemnified party) except to the extent of the willful misconduct or gross negligence
of such indemnified party, as determined by a court of competent jurisdiction in a final non-appealable judgment or order. The
provisions of this Section 6.15 shall survive the termination of this Guaranty.

 

6.16         Amendment
and Restatement. This Guaranty amends and restates,
in its entirety, the Existing Guaranty. The obligations and other Indebtedness of Guarantor under the Existing Guaranty will continue
in existence as obligations and other Indebtedness of Guarantor under the terms of this Guaranty. References in any of the Loan
Documents to the Existing Guaranty shall, after the date of this Guaranty, be deemed to be references to this Guaranty. 

 

[Signature Page Follows]

 

    	- 10 -

    	 

    

  

  

First Financial Bank, National Association

		Borrowers:	Environmental Quality Management, Inc.

EQ Engineers, LLC

Vertterre Corporation

Loan Number: 820106477

 

Guarantor has signed
this Guaranty as of the Effective Date.

  

	 	EQM Technologies & Energy, Inc.
	 	 	 
	 	By: 	/s/ Robert R. Galvin
	 	 	Robert R. Galvin, Chief Financial Officer

 

Accepted as of the Effective Date.

 

	FIRST FINANCIAL BANK, NATIONAL ASSOCIATION	 
	 	 	 
	 	 	 
	 	 	 
	By:	/s/ Thomas J. Fischer	 
	 	Thomas J. Fischer, Vice President	 

 

SIGNATURE PAGE TO

AMENDED AND RESTATED GUARANTY

  

    	 

    	 

    

  

SCHEDULE I

 

Additional Beacon Noteholder Subordinated
Debt (including Additional Greber Convertible Subordinated Note)

 

December 2011 Beacon Noteholder Subordinated
Debt

 

Vertterre Subordinated Note

 

Capital Lease Liability – ($55,924 at
December 31, 2012)

 

    	 

    	 

    

 

SCHEDULE II

 

Liens:

 

Liens related to the First Financial Bank
Letter of Credit (SLCLSTL02779) - Lexon Insurance at Beneficiary.

 

Liens related to Capital Leases

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